Wang’s Happy Trading

Submitted By Optiondragon

Eagles - Hotel California

From Briefing.com

Periodicals Wrap-Up for Tuesday, July 1st
WALL STREET JOURNAL: In a cost cutting move, struggling automaker Chrysler said it will idle its St. Louis South minivan plant in October, and will reduce operations at its St. Louis North Dodge Ram pickup truck plant to one shift in September, the Wall Street Journal reported. About 2,400 people will lose their jobs at both plants…In an unprecedented move, the Justice Department is pressuring UBS (UBS), a foreign bank, for the names of wealthy U.S. client who used the bank to avoid paying taxes, reported the Wall Street Journal, and has sought a federal court order to proceed…NEW YORK TIMES: After learning Moscow authorities have refused to renew the work visas of BP Plc’s (BP) expatriate staff, the New York Times reported that the British oil company may be in danger of losing control of TNK-BP Holding, its Russian joint venture. If the top officials from the BP side of the venture, including the CEO and CFO, are forced to leave, TNK-BP will fall into the hands of its Russian partners…UK TIMES: In an upheaval aimed at preventing too much power from being exercised by the company’s chairman, UBS decided to replace four board directors in October. The governance model, which will separate the roles and responsibilities of the board and executive management, will reportedly come into play immediately and will allow the board to delegate the duties formerly allocated to the chairman’s office to board committees…

Metals & Mining: Estimates lowered for AA, CENX, & NEM@FBCO
Credit Suisse lowered estimates on AA, CENX, and NEM based on the differences between actual vs. preliminary metal prices, currencies, raw material costs, and company specific issues. All three stocks are Outperform rated.

MA: Recent weakness a buying opportunity@COWN
Cowen said weakness in MA based on AXP comments related to deteriorating credit quality and consumer spending concerns are overdone. Shares are Outperform rated.

Financials Breaking March Lows
On the heels of speculation about continuing issues at Lehman (LEH) and fresh problems at UBS AG (UBS) both stocks in the pre-market are below their March lows. If the behavior of the stocks is anything like that of the Dow Jones Industrials Index (DJX) following its break, we could see an acceleration of downtrend. Those who are bullish might use the proximity to the lows, however, as an attempt to go long on a double-bottom play. In the absence of positive fundamentals this would be a pure relative price/mean reversion play if it were to happen. Risks are distinctly two-sided here. For LEH, support levels to watch as potential downside objective below the March low at $20.25 are at $20.06, $19.58, $19.25, $18.81, $18.50, $18.09, $17.81, $17.41. Resistance levels to watch as potential upside objectives above $20.25 are at $20.53, $21.00, $21.39, $21.75, $22.20. For UBS, support levels to to watch as potential downside objective below the March low at $19.73 are at $19.40, $19.10, $18.67, $18.30, $18.01, $17.73, $16.92, $16.57. Resistance levels to watch as potential upside objectives above $19.73 are at $20.04, $20.41, $20.72, $21.06, $21.34, $21.70.

JP Morgan Chase-JPM downgraded to In Line from Outperform@FPKI

Broadcom-BRCM: 2Q results are likely to be financially robust; target $36@FBRC
The firm finds the stock to be inexpensive and think the stock in the coming quarters will move closer to their $36 price target. 3Q outlook could generate upside results. Reiterate Outperform rating.

Microsoft tries new tact in search-Business Week
Trying to gain some traction, in search Microsoft (MSFT) is considering buying Powerset. Powerset is developing “semantic web” technology, which searches based on meaning and context. After a failed bid at Yahoo (YHOO) Microsoft hopes to gain on rival Google (GOOG) by adding unique capabilities. Supposedly Microsoft has offered more than $100M to acquire Powerset.

MF Global-MF removed from Focus List, maintain Overweight@JPMS
JP Morgan is concerned the company could lose some more high quality customers due to a lack of investor confidence. They lowered their estimates, but find the valuation cheap at current levels.

Energy/Natural Resources: Positive outlook on MLP subsector; Outperform@FBRC
ATN and LGCY continue to be the firm’s favorite companies, with FBRC believing within two years, ATN will be a $75+ stock due to the potential from Marcellus. At current levels, FBRC believes stock should be purchased in the MLP subsector given historic overhang from prior PIPEs dissipating and extremely attractive distribution yields. The firm increased target price to $30 from $28 for LGCY.

Focus Media-FMCN: Find risk/reward compelling at current levels@PIPR
Piper notes the company indicated that Q2 is tracking in line with the guidance at its analyst day. The firm maintains a Buy rating and $63 target.

Genentech-DNA: Expect to beat consensus and raise EPS guidance@RBCM
RBC Capital expects DNA to have an above consensus quarter driven by US sales of Avastin, Herceptin, and Rituxan. The firm raised its Q2 EPS estimate to 87c from 85c and 2008 estimate to $3.55 from $3.50. Shares are Outperform rated.

Schnitzer Steel-SCHN reports Q3 EPS $2.14 vs. consensus of $1.87
Reports Q3 revenue $972M vs. consensus $937.67M.

Markets expected to open lower as the third quarter begins; Crude oil over $143
Stocks are poised to open lower on the first day of trading in the third quarter. Crude oil once again is the catalyst to sell as the price hit $143.67 in overnight trading. Concerns about the damage to the economy caused by oil prices and where it will stop has kept buyers away. Today data about the economy will include the release of the ISM Manufacturing data, Construction Spending for May, and domestic vehicle sales for the June.

Handsets: Expect a re-acceleration in 2H08@COWN
Cowen expects a re-acceleration in 2H08 in handset growth due to: the 3G product cycle strength, higher operator handset subsidies, and faster deployment of 3G networks worldwide. The firm expects 2H08/1H08 growth to be above the Street’s estimate of 15% and believes that NOK & QCOM are the best positioned to benefit.

Forest Oil-FST target raised to $99 from $95, maintain Buy@SBSH
Citigroup values the company’s Haynesville Shale acreage at $4 per share.
Nice premarket jump.

Oceaneering-OII initiated with an Add, target $86@LYON

National Oilwell Varco-NOV coverage assumed with a Buy, target $92@SBSH

Cameron-CAM coverage assumed with a Buy from Hold@SBSH
Citigroup assumed coverage of CAM and upgraded the stock to Buy. Target $66.

Halliburton-HAL coverage assumed with a Buy, target $63@SBSH

NYX removed from Conviction Buy List, maintain Buy@GSCO

ARM removed from Conviction Buy List; maintain Buy@GSCO

GS initiated with an Overweight, target $205@MSCO
LEH initiated with an Overweight, target $31@MSCO
MER initiated with an Equal Weight, target $33@MSCO
BEN initiated with an Overweight, target $120@MSCO

UBS removed from from Europe 1 List@MLCO

Computers/Storage Q2 earnings preview: See upward bias to numbers@PACS
PacCrest says that based on robust seller activity at quarter-end, they see an upward bias to their Q2 estimates. The firm’s Top Picks are EMC (EMC), Brocade (BRCD), Data Domain (DDUP), and F5 Networks (FFIV)

SanDisk-SNDK: Advise caution into earnings report; estimates lowered@PACS
PacCrest is cutting estimates for Q2, 2008 and 2009 on continued weak NAND pricing and sell through. With the prospects for lower numbers, PacCrest believes further head count reductions are in the works and signal weakness may extend through 2H08. They rate SNDK a Sector Perform.

Jim Cramer’s “Mad Money”
Cramer predicted the next big move in stocks will come from the Medicare spending bill now working its way through Congress. The U.S. government will spend upwards of $454B on Medicare this year, up from just $371B in 2006. This means a windfall for many companies poised to take advantage of the huge government handouts that are about to take place, he said. He noted that long-term care hospitals benefited from last year’s bill, with stocks such as Kindred Healthcare (KND), up 16% in the weeks that followed. In-patient rehabilitation facilities also benefited. For example, Healthsouth (HLS), rallied 16% after the bill was announced. On the downside, companies such as the oxygen-and-dialysis providers nose-dived after funding for their operations were left out of the bill at the last minute. Cramer predicted that healthcare and medical reform companies will outperform every sector in the market with the possible exception of oil and gas in the coming quarter. Specifically, Cramer high-lighted Fresenius (FMS) which he says is poised to benefit from this year’s Medicare spending bill. Dialysis is one area Congress is expected to increase funding, and Fresenius will be the primary benefactor. The dialysis market is a duopoly between Fresenius and DaVita (DVA), which collectively control 60% of the U.S. market. Cramer said both Fresenius and DaVita are terrific companies, but he likes the larger Fresenius for its growth, international footprint and he calls it the “best in breed”. Cramer called Fresenius a $65 stock masquerading as a $54 stock and expects the company to earn $3.26 a share compared to the $3.10-a-share estimates for 2009. Next, Cramer said while both General Motors (GM) and Ford (F) look cheap in the single digits, it’s the bond holders, not the stock holders, who really control the company. Cramer said that both GM and Ford have simply borrowed more than they can repay, leaving the bondholders in control of their destiny. He said that despite their huge assets, GM has a negative book value and Ford’s book value is barely zero. Cramer said he wouldn’t own either company and extended the warning to shares of many of the ailing bank stocks as well. Then, Cramer welcomed Glen Post, chairman and CEO of CenturyTel (CTL) to discuss his company’s recent decision to increase its dividend ten-fold. Post said that after years of buying back shares, CenturyTel still had significant free cash flow. Post expects to see broadband services continue to be strong and expects CenturyTel to continue to prosper. Cramer commended Post for returning value to shareholders and told viewers to just start buying. SUDDEN DEATH: (Bullish) NKE; RIMM. (Bearish) GLW. LIGHTNING ROUND: (Bullish) MA; ACN; REXX; CHK; AMAT; FSLR; ED. (Bearish) AOB; V; TTM; YGE; BJRI; CSIQ.

U.S. equity futures continue pointing to a lower open as Mideast tensions rise
U.S. equity futures continue to point to a lower open as fears of higher oil prices and Middle East tensions have investors on edge. Bloomberg this morning cited an ABC News unidentified Pentagon official who said Israel is increasingly likely to attack Iran’s nuclear facilities this year. They also said that the chairman of the U.S. Joint Chiefs of Staff was in Israel last weekend for meetings with Israeli military leaders. This report comes on the heels of yesterday’s comments from Iran which said that any attack against them would cause them to disrupt the oil shipping lanes. The price of crude oil is up more than $2 a barrel this morning to $142.52.

Fast Money Position Recap- First Moves: Joe likes GIS, Guy likes T, Karen likes GLNG, Pete likes ELN.
Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (AAPL), (AMLN), (ANR), (NOK), (NUE), (TSO), (XLF), (YHOO), (HD); Najarian Owns (MER) Puts, (WFMI) Puts, (HBC) Puts; Najarian Owns (MYGN) Calls, (SLB) Calls, (WM) Calls, (WLT) Calls; Finerman Owns (GS); Finerman’s Firm And Finerman Own (FLS), (GLNG); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm And Finerman Own (GE) And (GE) Puts; Finerman’s Firm Owns (MSFT), (SUN), (TSO), (TWX), (VLO); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Owns (HUN) Calls; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (BNI), (YHOO), (LUV), (CME), (GOOG), (SU), (INTC), (FXC), (IYT),  (XLF), (FCX); Terranova Owns Dollar Index Futures.
Terranova is chief alternatives strategist at Phoenix Investment Partners;; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO).

Geopolitical news is making the headlines this morning as rumors of an Israel strike on Iran nuclear facilities makes the rounds. If Iran is struck the price of oil will jump horrendously higher and the markets would go into free fall. Where there is smoke there is fire and Iran is still building and developing their nuclear capabilities. There has to be an end game here and it either ends diplomatically or in war. I prefer peace as always but must prepare for all outcomes. The financials are getting hit again and I will be looking for high probability shorts but will be aware of an upcoming technical bounce coming up in the next week. Having a portfolio blanced with shorts and longs has been shown to be very profitable in this market. If you are having a difficult time shorting or finding a short, look to the Ultra Shorts for “long” ideas or short the market to balance your long positions which should be exposed to the sectors which are working lately. Being patient and staying in cash is a great idea too until further clarity arrives. Have focus, pick plays with a high probability of success and stay positive. Great Luck and great trading!

Submitted By Optiondragon

NASA Zero Gravity Water Bubble- Testing for Wang’s Happytrading Metamorphosis: Getting Ready For Liftoff

From Briefing.com

Periodicals Wrap-Up for Friday, June 27th
WALL STREET JOURNAL: The Wall Street Journal reported that is is not yet certain whether Merrill Lynch (MER) will need to raise money. If it does, selling common stock could be expensive due to a 12-month protection the bank offered the investors that bought $12B in common and preferred shares earlier this year and selling assets like its interest in Bloomberg may present a different problem…The Wall Street Journal also reported that investigators from the European Union are probing deeper into the pharmaceutical industry in an effort to determine whether drug companies have used unfair tactics to increase prices and block competition. Investigators have reportedly ask for views on direct-to-pharmacy distribution channels, which Pfizer (PFE) and AstraZeneca (AZN) recently established in Britain…FINANCIAL TIMES: After Anheuser-Busch (BUD) said it would reject InBev’s $46B bid as “financially inadequate,” InBev said it would launch a hostile bid. According to court documents, the Financial Times reported that InBev is preparing to launch a proxy battle seeking the removal of Anheuser’s entire board…The Financial Times also reported that soaring energy prices are forcing U.S. consumer goods company Procter & Gamble (PG) to rethink how it distributes products. The company may consider shifting manufacturing sites closer to consumers in order to lower its transport bill…

If Merrill Lynch needs to raise more capital choices are few-WSJ
If as expected Merrill Lynch’s (MER) losses continue to mount raising additional capital may be much more difficult than it was when CEO John Thain took over the firm, according to the Wall Street Journal’s “Heard on the Street”. Yesterday two key analysts cut their earnings expectations for Merrill. Over the past 52 weeks the stock is down over 60%. Second quarter write-downs could be about $4.2B. Merrill could sell more common stock or sell off assets, including interests in Bloomberg and BlackRock (BLK), but each move comes with complications. But Thain may have no choice with the firm’s survival at stake.

U.S. equity futures now point to a lower open; Personal income, spending up
Stock futures are pointing to a lower open as crude oil prices continue to hit record highs. Oil crossed the $142 a barrel level earlier and the futures fell. Investors received some economic data from the Commerce Department, namely the personal income and spending reports which showed personal income rose 1.9% versus an expected increase of 0.4%, and spending rose 0.8% versus an expected increase of 0.7%. The numbers had a positive effect on the futures, but oil prices remain in the forefront.

IGT downgraded to Equal Weight from Overweight@MSCO
Morgan Stanley lowered IGT estimates citing reduced share gains and weakening gaming operations.

CHL downgraded to Neutral from Buy@MLCO

WYNN downgraded to Underweight from Hold@KEYB
KeyBanc said the Las Vegas gaming market continues to be pressured by the slowing economy and higher fuel prices and that believes Macau is still strong, but not as strong as many anticipated. The firm downgraded WYNN based on lowered WYNN estimates and negative group psychology. Target $70.

Coal-$QL: Price Has Gone Parabolic
We noted the extreme rise in Coal last week and the importance this plays in power generation. Approximately 55% of the electricity in the US is generated by coal-fired plants. Although Crude Oil gets the attention, it is the price of Coal, not Crude, that has gone exponential. This week alone as of yesterday, Coal was up +8.28% for the week. For the year-to-date, up +133.9%. The impact on businesses this summer is likely to be extreme. Those that would be particularly sensitive are, for example, online companies that cannot idle plant. Being always-on is going to carry a significant price tag.

Forest Oil-FST upgraded to Buy from Hold@DBAB
Deutsche Bank upgraded shares to reflect the company’s improved free cash flow profile, strong production growth outlook and exposure to two emerging North American shale plays. Target raised to $88 from $65.

KB Home-KBH reports Q2 EPS ($3.30) vs. consensus of (94c)
KBH reports Q2 revenue $639.1M vs. consensus of $691.29M. The company cites a 41% decrease in homes delivered and a 17% decline in the average selling price for the delinein revenue from last year.

Crude Oil-$CL: Bullish Breakout
Light Sweet has broken out of the horizontal range we noted last week. The top line of that pattern was at the $139.50 area. Potential for this pattern, which is akin to a bullish flag, works to the $148.50 area. Seen in a different context, the flag was a pause in the uptrend. The target being discussed is simply a move to uptrend resistance projected forward from the peaks in price in March and May of this year. In other words, a move to the upper bounds of a longer time-frame bullish price channel. This would suggest the move is not extreme but part of a larger, normal, bullish trend price projection in the longer-term.

MER could possibly announce a loss in quarter-CNBC
Charlie Gasparino is discussing CEO Thain’s credibility issues, saying MER could report a loss and that it may need to raise additional capital, despite Thain saying the company would not.

MER: Now expect a Q2 writedown of $5.4B@LEHM
Lehman now expects Merrill to post a Q2 writedown of $5.4B, an increase of $3B, due to recent credit downgrades of monoline insurers and widening credit spreads. Additionally, the firm lowered its Q2 EPS estimate to ($2.78) from (64c). Shares are Equal Weight rated.

RIMM initiated with an Underperform, target $100@FBCO
Credit Suisse expects RIMM’s earnings growth to slow on expected shares loss at AT&T and gross margin pressure.

Evergreen Solar-ESLR 18.18M share Secondary priced@9.50; mgr LEHM
The deal size was reduced to 18,180,000 shares from 20,000,000 shares.

Quicksilver Resources-KWK upgraded to Buy from Add@LYON

EDU target lowered to $86 from $93, maintain Buy@PIPR
Piper believes the Sichuan earthquake and upcoming Beijing Olympics represent near-term headwinds for the company, but that their long-term investment thesis remains intact.

Fed may soon make it easier for private equity firms to invest in banks-WSJ
Banks stocks are falling through the roof and now the Federal Reserve may soon allow private equity firms and other institutions to more easily invest in troubled banks, reports the Wall Street Journal. “This would be a bit of a sea change for the Fed,” says Gregory Lyons at the law firm Goodwin Procter. “A number of banks would love to access the private-equity pool. It’s a clean slug of money.” There’s no guarantee that private equity firms will want to but the Fed is reviewing federal law about bank ownership.

IMCL initiated with an Overweight, target $50@TWPT
Thomas Weisel believes IMCL is attractively valued as Erbitux is positioned to capitalize on a number of label-expanding opportunities and that concerns of KRAS-related revenue loss in colorectal cancer and the clinical utility of FLEX lung cancer data are overstated.

OSIP initiated with an Overweight, target $54@TWPT
Thomas Weisel believes OSIP’s Tarceva is positioned for significant growth and that concerns of emerging competition have created an attractive entry point.

China Mobile-CHL says biggest obstacle on iPhone deal removed-Bloomberg
According to Bloomberg, China Mobile said Apple’s (AAPL) decision to abandon its policy of sharing revenue from its iPhone handsets with carriers has cleared the biggest obstacle to an agreement with the company.

Jim Cramer’s “Mad Money”
Cramer says accept the declines in the market. Investors should raise cash by selling marginal positions and buying stocks that they like, he said. Cramer said that right now he doesn’t like the market other than a couple themes that he is suggesting investors circle the wagons around. He says, “When even Conoco (COP) and Rio (RIO) and even the sacred Potash (POT) go down, I need you to think opportunity, not enemy.” Part of the reason the selloff was so bad Thursday was that companies are forbidden to buy stock at the end of the quarter, Cramer said. Cramer told viewers to sell: C, WM, WB, AIG, FNM and FRE. He reminded that he is fearful of GM and F and doesn’t like the retail homebuilders. He said that investors should always have gold in a diversified portfolio. Cramer said that the companies that will rally are companies that offer what’s in short supply and companies that rise in a recession. He said stocks like: CHK, SLB, HNZ and anything that supplies China with the copper, steel and coal that it needs is to be bought here. The future is offshore drilling, Cramer said. His next pick in the space is Smith International (SII) as a drilling-fluid play. He said the fluids are profitable to sell and have been successful in highly regulated areas like Europe. He said Smith and two other companies make up a drilling fluid oligopoly, making the stock more attractive. Smith also issued a 15M buyback authorization, Cramer said, which means it’s a great stock. SELL BLOCK: Darden (DRI) after the stock’s quick rise in the past week, Cramer said it’s time to ring the register. Cramer then reminded viewers that he had told them to avoid Nike (NKE) and Research In Motion (RIMM) ahead of their earnings. He recommended buying both now that they have gone down. He reiterated previous bearish calls on ConAgra (CAG) and RiteAid (RAD). Stay away from retailers, Cramer said. He warned viewers to stay away from: JCP, SHLD, KSS and DKS. Next, Cramer welcomed Russell Huffer, Apogee’s (APOG) Chairman CEO, to discuss his business. Since Cramer’s recommendation on April 28 as a green-building play, the stock has fallen 16%. Huffer said that the quarter missed the Street expectation, but met the company’s expectation. He said that the company is a long-term investment but his backlogs are bullish signs. Cramer said investors should wait another quarter. “Right now we’re in don’t-buy mode,” he said. LIGHTNING ROUND: (Bullish) TUP; SBUX; WRES; HNZ; GIS; FRO. (Bearish) PENN; HCBK.

Fast Money Position Recap- First Moves: Joe likes SU, Guy likes ALL, Karen likes MRK, Pete likes puts on the SMH.
Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman Owns (GS); Finerman’s Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (AXP), (DVA); Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Najarian Owns (AAPL), (ANR), (CHK), (RIMM), (TSO), (XLF); Najarian Owns (MER) Puts; Najarian Owns (NUE) Calls, (QID) Calls, (SLB) Calls, (YHOO) Calls; Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO),  (FCX); Terranova Owns Dollar Index Futures.
Terranova is chief alternatives strategist at Phoenix Investment Partners;; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO).

MER weakness causing markt weakness this morning. This is a vicious cycle, downgrade parade. Even strong pockets are starting to crack. It is such an interesting time right now with parabolic moves and prices in energy shares and commodity prices but new steep selloffs in many other areas of the market such as casinos, financials, emerging markets, autos, airlines, HB’s. The biggest reason for recent market weakness is the lack of big buyers to counterbalance the waves of selling. Oil made a new high this morning in premarket but now pulling back. The market is extremely oversold and it would not surprise me to see a bounce/cover rally at some point next week hopefully lasting longer than a day. Pick plays with a high probability of success, stay patient, run technicals through support and resistance. Good Luck and great trading, see you in the trading room and Happy Birthday to Wang’s Happytrading’s 2 millionth hit. So many more hits to come, so many new plans ready to launch for all our loyal readers present and future. Thank you for your support and adding to the Collective Intelligence. Get ready for Liftoff.

Submitted By Optiondragon

Led Zeppelin - Black Dog (Music Video)

From Briefing.com

Periodicals Wrap-Up for Thursday, June 26th
WALL STREET JOURNAL: Anheuser-Busch (BUD) is going to turn down InBev’s unsolicited $46.35B takeover offer and that may come before week’s end, the Wall Street Journal reported. InBev is then expected to pursue a hostile takeover and Anheuser will say the offer undervalues the company. Instead, Anheuser will attempt to boost its share price by selling non-core assets such as its theme parks…The Wall Street Journal also reported that Belgian-Dutch financial firm Fortis NV (FORSY), in a move to increase its solvency, will attempt to raise $12.54B, and will also cancel its interim dividend and sell some assets…According to people familiar with the situation, the Wall Street Journal reported that JP Morgan Chase (JPM) reportedly dropped out of the bidding for General Electric’s (GE) $30B credit-card business. The sources said Citigroup (C), Bank of America (BAC) and Capital One (COF) are not expected to submit bids, as a result of charge-offs and rising delinquencies in their own credit card portfolios…FINANCIAL TIMES: The Financial Times reported that the London Stock Exchange, in a joint venture with Lehman Brothers (LEH), unveiled a pan-European equities trading platform to fight rivals that are hurting its market share…

JP Morgan Chase may be on the prowl for another big-bank buy-NY Post
According to people familiar with the matter, JP Morgan (JPM) is on the hunt for another big-buy bank, despite recently acquiring Bear Stearns. Sources say of particular interest to JP Morgan are SunTrust (STI) and Washington Mutual (WM). In order of appeal, JP Morgan’s wish list also includes PNC Bank, Wachovia Bank (WB) and US Bancorp (USB). It remains unclear if formal discussions are currently underway. Others considering tie-ups may include Wells Fargo (WFC), PNC Bank and US Bancorp.

Pre-Market Movers: Ahead of the Bell
The session is going to be a very busy one. As we expected, the week is going to be very back-end loaded in terms of activity. Futures are down sharply following further trouble in the financial sector with Goldman Sachs estimating that Citigroup (C) may need to take a further large write-down. The firm also took down broker estimates across the board, downgrading the sector to attractive. With that, Citigroup (C) is trading down (-4.24%) on heavy volume. Several of the large banks and brokers are following suit with Merrill Lynch (MER) down (-3.24%), Lehman (LEH) down (-3,11%), JP Morgan Chase (JPM) down (-2.4%), Bank of America (BAC) down (-2.1%) and Wachovia (WB) down (-2.07%). Goldman Sachs (GS) is also trading down (-2.04%) following a downgrade to Market Perform at Wachovia Capital Markets. Turning to post-earnings results from last night, Research in Motion (RIMM) is trading down (-8.88%) after reporting a penny miss on Q1 last night after the close combined with a lower Q2 estimate. JMP Securities downgraded the shares to Market Perform and Citigroup took down its price target to $160 from $165. Oracle (ORCL) is trading down (-3.75%) after the company reported better than expected Q1 results last night after the close. The company cautioned that growth going forward would be slower than in the past. One bright spot this morning is Bed Bath & Beyond (BBBY), trading up +6.6% following a much better than expected earnings report after the regular session yesterday, with raised guidance for Q2. Broker opinion on the name was mixed with Piper Jaffray reiterating a Sell and Oppenheimer & Co recommending long-term investors buy on any weakness.

U.S equity futures continue to point to a lower open; GDP growth met expectation
Stock futures are still pointing to a much lower open. The GDP for the first quarter showed growth at an annualized rate of 1.0% equal to expectations. The reading comes a day after the Federal Reserve met and said that inflation was a growing concern, signaling the end of rate cuts and the suggestion of a holding pattern to see what develops. Traders are already betting on a rate increase as early as the end of the summer with many saying the Fed could wait until after the election.

RIMM: Buyers on weakness; target raised to $165@PACS
PacCrest says they got the pullback they expected with the expectations now reset. They believe operating margins are unlikely to recover soon, but that RIMM is a leader in the accelerating smart phone market and sub growth outlook is encouraging with new products coming. PacCrest raised their target to $165 from $136 and maintain an Outperform rating.

BRCM initiated with an Outperform, target $36@RBCM
RBC Capital expects BRCM’s multiple to expand as the company demonstrates a resumption of growth.

AKAM: Recommend buying in front of Q2 earnings report@PACS
PacCrest believes the fundamentals remain solid for AKAM and expects Q2 revenue, EPS and subscriber metrics to be solid. They see the both the near and long-term outlooks as strong with relatively stable pricing. PacCrest reiterates their Outperform rating and $45 target.

Research in Motion-RIMM: Shares defended, reiterate Buy@MLCO
Merrill recommends buying RIMM for the 2H08 product ramp. Target $170.

RIMM: Would view weakness as a buying opportunity@OPCO
After RIMM reported results for its Q1 that Oppenheimer views as solid, but provided lower than expected guidance for its Q2, the firm notes that the company’s operational spending is increasing. However, the firm expects the increased spending to result in greater market share for RIMM, resulting in enhanced operating leverage. The firm maintained their Otuperform rating.

Semiconductors: Positive on chip stocks due to stable business trends@FBRC
With the momentum of AAPL’s 3G iPhone product cycle continuing to accelerate, the impact for their chip suppliers, BRCM/OP and MRVL/OP, is positive. In the 3Q, FBRC believes this will translate into an additional 3% sequential growth for BRCM and 2% extra sequential growth for MRVL. The firm thinks with business trends being stable or better, normal inventories and attractive chip valuation multiples, the chip stocks are ready to outperform the broader market with their preferred, favorite long ideas being MRVL, ONNN, FCS, MSCC, BRCM, IRF, SLAB and ATML.

Albermarle-ALB removed from Conviction Buy List; maintain Buy@GSCO
Note that MON was added to the list.

V: See several opportunities for company to raise prices@WCHV
Wachovia believes Visa can charge customers for previously free products, and they think the company can raise its fees on banks in some markets. The firm believes the company is on track to meet or exceed their estimates, and Wachovia reiterated their Outperform rating.

MON target raised to $160 from $145, maintain Buy@BOFA
Banc of America believes their thesis intact following MON’s quarter and would buy shares on the weakness.

Merrill Lynch-MER: Estimates reduced on further writedowns@BERN
Bernstein lowered Q2 and FY EPS estimates for Merrill as it now expects $3.5B in total writedowns for the company. The firm lowered its Q2 EPS estimate to (93c) from 82c. Shares are Market Perform rated. Target $45.

ACI upgraded to Buy from Add@LYON
Calyon upgraded ACI, BTU, and FCL citing higher coal forecasts. ACI price target to $100 from $71.
FCL price target to $119 from $74. BTU price target to $115 from $88.

MON added to Conviction Buy List; maintain Buy@GSCO
Target $155.

Citigroup-C added to Conviction Sell List@GSCO
Goldman added Citigroup to their Conviction Sell List as they expect additional write-downs of $8.9B in Q2 and see the potential for additional capital raises. Goldman lowered their target price on Citigroup shares to $16 and recommends a pair trade of long Morgan Stanley (MS), short Citigroup.

U.S. Brokers sector downgraded to Neutral from Attractive@GSCO
Goldman downgraded U.S. Brokers since they can not find a catalyst to move the group significantly higher over the next few months given the continued deterioration in fundamentals. Goldman added Citigroup (C) to their Conviction Sell List and recommends a pair trade of long Morgan Stanley (MS), short Citigroup.

Fast Money position recap- First Moves: Joe likes FCX, Guy likes T, Karen likes MSFT, Pete likes NOK.
Najarian Owns (AAPL), (ANR), (CHK), (NOK), (NVDA), (ORCL), (TSO), (XLF), (XTO), Najarian Owns (YHOO) Calls, (MYGN) Calls, (RIMM) Calls, (SLB) Calls, (UBS) Calls; Finerman Owns (GS); Finerman’s Firm Owns (AXP), (MSFT), (PZN), (SUN), (TSO), (VLO), (KALU), (CYBX); Finerman’s Firm And Finerman Own (C) And (C) Leaps; Finerman’s Firm Owns SPX Index Puts; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Karen Finerman’s Partner In Her Hedge Fund Is On The Board Of Cyberonics; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO),  (FCX).

The Fed meeting was a non event and we are now back to battering the financials as GS came out with negative broker/bank remarks this morning. The commodity trade is poised to resume upward. Long plays should be in the same areas of strength as before but against a possibly weaker declining market environment. SDS, SKF, FXP, DXD, QID are “long” ideas to watch, coal, ferts, metals, miners, energy, USO. Oil looks to break into ATH territory.
Great Luck and great trading!