Berkshire Hathaway Inc. (BRKA BRKB) posted an 18% drop in fourth-quarter net income on lower investment gains and a drop in insurance underwriting fees, and Chairman Warren Buffett warned that the insurance business is likely to get tougher in 2008.
"That party is over," the billionaire investor wrote in his annual letter to shareholders. "It's a certainty that insurance-industry profit margins, including ours, will fall significantly in 2008."
The investment holding company reported net income of $2.95 billion, or $1,904 a Class A share, compared with $3.58 billion, or $2,323 a Class A share, a year earlier.
Analysts surveyed by Thomson Financial had expected the Omaha, Neb., company to post earnings of $1,606 a share.
Friday, February 29, 2008
Stocks Plunge on Inflation Worries....
Credit losses from American International Group combine with troubling growth and inflation data to diminish hopes that the U.S. stock market and the economy have seen the worst this year.
DJIA ends down 316 points, with all 30 components lower. The Nasdaq Composite falls 60 points.
DJIA ends down 316 points, with all 30 components lower. The Nasdaq Composite falls 60 points.
Ugly Market....
Want to see some Bad Breadth:
NYSE
Advances 417
Declines 2528 6:1
Advancing Volume 34 Million shares
Declining Volume 373 Million shares 11:1
As a result:
Dow -216
S&P -24
Nasdaq -41
It is no longer coincidence that when Bush and Bernanke speak....the market sells off....
NYSE
Advances 417
Declines 2528 6:1
Advancing Volume 34 Million shares
Declining Volume 373 Million shares 11:1
As a result:
Dow -216
S&P -24
Nasdaq -41
It is no longer coincidence that when Bush and Bernanke speak....the market sells off....
Today's Upgrades...
Stocks Upgraded this Morning...
Nippon Telegraph (NTT) by Credit Suisse
Deutsche Telekom (DT) by Citigroup
Quest Diagnostics (DGX) by Credit Suisse
Dell (DELL) by Friedman Billings
Deckers Outdoor (DECK) by RBC Capital Mkts
Entergy (ETR) by UBS
Repsol SA (REP) by UBS
Pfizer (PFE) by Lehman Brothers
Nippon Telegraph (NTT) by Credit Suisse
Deutsche Telekom (DT) by Citigroup
Quest Diagnostics (DGX) by Credit Suisse
Dell (DELL) by Friedman Billings
Deckers Outdoor (DECK) by RBC Capital Mkts
Entergy (ETR) by UBS
Repsol SA (REP) by UBS
Pfizer (PFE) by Lehman Brothers
Today's Downgrades....
Stocks Dowgraded this Morning....
Take-Two (TTWO) by Cowen & Co
Carrizo Oil & Gas (CRZO) by CapitalOne southcoast
Jackson Hewitt (JTX) by FTN Midwest
InterNAP (INAP) by RBC Capital Mkts
EOG Resources (EOG) by RBC Capital Mkts
BEA Systems (BEAS) by Deutsche Securities
R.H. Donnelley (RHD) by Bear Stearns
Omnicare (OCR) by Bear Stearns
Novartis AG (NVS) by HSBC Securities
American Intl Group (AIG) by Keefe Bruyette
MF Global (MF) by Lehman Brothers
R.H. Donnelley (RHD) by Deutsche Securities
Take-Two (TTWO) by Cowen & Co
Carrizo Oil & Gas (CRZO) by CapitalOne southcoast
Jackson Hewitt (JTX) by FTN Midwest
InterNAP (INAP) by RBC Capital Mkts
EOG Resources (EOG) by RBC Capital Mkts
BEA Systems (BEAS) by Deutsche Securities
R.H. Donnelley (RHD) by Bear Stearns
Omnicare (OCR) by Bear Stearns
Novartis AG (NVS) by HSBC Securities
American Intl Group (AIG) by Keefe Bruyette
MF Global (MF) by Lehman Brothers
R.H. Donnelley (RHD) by Deutsche Securities
Microsoft Optimistic on Yahoo Merger...
Sears Lowers Bid For Restoration Hardware...
Late Thursday Sears (SHLD) revised its buyout bid for Restoration Hardware (RSTO) $4.55/share from a previous $6.75, and offered reverse break-up fee that is $5M greater than the break-up fee Restoration set in its negotiations with private-equity firm Catterton Partners. Sears offered $6.75/share in December after Restoration agreed to be acquired by Catterton for $6.70/share in November. Catterton later dropped its bid to $4.50/share. Sears apparently likes to one-up Catterton by increments of 5.
Is Someone Else Interested in Take Two???
In a SEC filing, Take-Two Interactive Software (TTWO) disclosed it has received additional interest since Electronic Arts (ERTS) made public its $2B bid for the company Sunday. It has not, however, received a written offer nor entered "substantive discussions" with any suitors.
Viacom CEO Philippe Dauman said yesterday he's not considering a bid for Take-Two.
As much as Electronic Arts has been criticized for overpaying here, I doubt anyone else will step in.
Viacom CEO Philippe Dauman said yesterday he's not considering a bid for Take-Two.
As much as Electronic Arts has been criticized for overpaying here, I doubt anyone else will step in.
Deere to Buy Into Chinese Machinery Company...
Deere & Co. (DE) Friday said it would buy a 50%stake of Xuzhou Xuwa Excavator Machinery Co. for an undisclosed amount. Xuzhou, a Chinese manufacturer of construction equipment, is a subsidiary ofXuzhou Bohui Science and Technology Development Co. Deere said it was seeking government approval in China for the transaction.
Shares of Deere, a Moline, Ill.-based manufacturer of agricultural andforestry machinery, closed Thursday at $86.97.
Shares of Deere, a Moline, Ill.-based manufacturer of agricultural andforestry machinery, closed Thursday at $86.97.
Dell 4Q Down 6%, Misses Expectations...
Computer maker earns $679 million, or 31¢ a share, on revenue of $15.99 billion, as costs tied to a realignment hit bottom line. Analysts were expecting EPS 36¢ on sales of $16.24 billion. Expects double-digit sales growth in Asia.
Ambac Deal hits Snag...
At issue is a disparity between how much money a bank consortium is willing to invest in the troubled bond insurer and how much capital cushion ratings agencies require to maintain the company's rating, CNBC's Charlie Gasparino reports.
AIG Falls, Swings to $5.3B Loss....
Shares fall 5% pre-market after global insurer reports a $5.3 billion 4Q loss largely because of a write-down that exceeded many analysts' expectations. Write-down comes on derivatives that fell in value by $11.12 billion.
Thursday, February 28, 2008
Thursday's Summary....
U.S. Markets:
Dow -112.10 (-0.88%)
Nasdaq -22.21 (-0.94%)
S&P 500 -12.34 (-0.89%)
News That Moved the Market
GDP and Initial Job Claims Disappoints. The markets began the day lower off worse than expected economic data and never recovered. Before the bell, the preliminary GDP reading was released, coming in at 0.6%, slightly less than economists' expectations. The figure matched the initial estimates from last month. Additionally, initial job claims increased to 373,000 which was above forecasts. Combined with the data from the last couple days, things are beginning to look bleak. "We have absolutely no momentum going into the first quarter,'' said Josh Shapiro, chief U.S. at Maria Fiorini Ramirez Inc. "Things are looking pretty grim for the economy. If we're not in a recession already, we're very close."
Bernanke Speaks, Market Drops. Fed Chairman Ben Bernanke appeared before the Senate Finance Committee today and yet again caused a sell-off. Bernanke, while answering questions, said he thought the current economic environment was more challenging than the 2001 recession and believed oil would remain high. The markets noticeably sold off when he said some small U.S. banks may fail, though he said he believed larger banks would be able to survive.
Dell Misses Analysts' Targets. Dell (DELL, +0.5% day; -1.3% A.H.) reported a drop in fourth-quarter earnings after the bell. Net income fell 6%, while sales increased 10%; both the top and bottom-lines missed analysts' forecasts.
Sprint Falls On Unlimited Plan Offer. Sprint (S, -9.6%) jumped into the wireless price war by offering unlimited voice calls, data, and Web surfing for $99.99/month. The company reported a $29.5 billion loss after taking a enormous charge related to its acquisition of Nextel Communications. It also suspended its dividend.
Quick Tics:
Oil rallied 1.8% while gold traded at another all-time high
Kohl's (KSS, -3.5% day, -0.7% A.H.) missed analysts' targets and reported same-store sales were down after the bell.
Tomorrow Notable Earnings:
NONE
Economic Events:
8:30 AM: Personal Income
8:30 AM: Personal Spending
9:45 AM: Chicago PMI
10:00 AM: Consumer Sentiment
Dow -112.10 (-0.88%)
Nasdaq -22.21 (-0.94%)
S&P 500 -12.34 (-0.89%)
News That Moved the Market
GDP and Initial Job Claims Disappoints. The markets began the day lower off worse than expected economic data and never recovered. Before the bell, the preliminary GDP reading was released, coming in at 0.6%, slightly less than economists' expectations. The figure matched the initial estimates from last month. Additionally, initial job claims increased to 373,000 which was above forecasts. Combined with the data from the last couple days, things are beginning to look bleak. "We have absolutely no momentum going into the first quarter,'' said Josh Shapiro, chief U.S. at Maria Fiorini Ramirez Inc. "Things are looking pretty grim for the economy. If we're not in a recession already, we're very close."
Bernanke Speaks, Market Drops. Fed Chairman Ben Bernanke appeared before the Senate Finance Committee today and yet again caused a sell-off. Bernanke, while answering questions, said he thought the current economic environment was more challenging than the 2001 recession and believed oil would remain high. The markets noticeably sold off when he said some small U.S. banks may fail, though he said he believed larger banks would be able to survive.
Dell Misses Analysts' Targets. Dell (DELL, +0.5% day; -1.3% A.H.) reported a drop in fourth-quarter earnings after the bell. Net income fell 6%, while sales increased 10%; both the top and bottom-lines missed analysts' forecasts.
Sprint Falls On Unlimited Plan Offer. Sprint (S, -9.6%) jumped into the wireless price war by offering unlimited voice calls, data, and Web surfing for $99.99/month. The company reported a $29.5 billion loss after taking a enormous charge related to its acquisition of Nextel Communications. It also suspended its dividend.
Quick Tics:
Oil rallied 1.8% while gold traded at another all-time high
Kohl's (KSS, -3.5% day, -0.7% A.H.) missed analysts' targets and reported same-store sales were down after the bell.
Tomorrow Notable Earnings:
NONE
Economic Events:
8:30 AM: Personal Income
8:30 AM: Personal Spending
9:45 AM: Chicago PMI
10:00 AM: Consumer Sentiment
Dell Disappoints...
Dell Inc. (DELL) after the close reported a fourth-quarter profit of $679 million, or 31 cents a share, on revenue of $16 billion. During the year-ago period, Dell earned $726 million, or 32 cents a share, on $14.47 billion in revenue.
Analysts surveyed by FactSet Research had forecast Dell to earn 36 cents a share on sales of $16.24 billion. Dell said it expects to incur more costs as part of its business realignment plans and such actions could hurt its performance in the near term.
The stock is down slightly in after hours trading.
Analysts surveyed by FactSet Research had forecast Dell to earn 36 cents a share on sales of $16.24 billion. Dell said it expects to incur more costs as part of its business realignment plans and such actions could hurt its performance in the near term.
The stock is down slightly in after hours trading.
Another Large Hedge Fund Unwinds....
Prominent London Hedge Fund Liquidates Fund
Peloton Partners, a large London-based hedge fund, is liquidating one of its funds in the latest casualty of the credit crisis. The firm is in the process of alerting investors that is winding down its Peloton ABS fund.
In my opinion this is why last years high fliers are getting crushed of late. This is the 2nd large hedge fund in the last week to fold. They sell their assets with no regard for price. Exactly what we have seen since January 1.
Peloton Partners, a large London-based hedge fund, is liquidating one of its funds in the latest casualty of the credit crisis. The firm is in the process of alerting investors that is winding down its Peloton ABS fund.
In my opinion this is why last years high fliers are getting crushed of late. This is the 2nd large hedge fund in the last week to fold. They sell their assets with no regard for price. Exactly what we have seen since January 1.
Bush Speaking on TV again....
and once again the Market sells off.
It's amazing how much Wall Street hates this guy.
Dow -95
S&P -8
Nasdaq -11
Only one guy they hate as much (Bernanke) and he'll be speaking later....ohhh nooo!!!
It's amazing how much Wall Street hates this guy.
Dow -95
S&P -8
Nasdaq -11
Only one guy they hate as much (Bernanke) and he'll be speaking later....ohhh nooo!!!
Today's Notable Movers:
Netflix (NFLX) up 1.57 to $34.00- continues to run after yesterday's earnings beat
LG Philips (LPL) up 1.17 to 24.63 - no news released but stock is breaking higher on abnormal volume. They are becoming household name in electronic display and TVs
Apple (AAPL) up 4.69 to $127.64 - on positive comments about iphone sales
EOG Resources Inc. (EOG) up 12.89 to $118.50 - boosted its 2009 and 2010 organic production growth estimates to 13% to 15% from the previously stated annual average of 10%.
LG Philips (LPL) up 1.17 to 24.63 - no news released but stock is breaking higher on abnormal volume. They are becoming household name in electronic display and TVs
Apple (AAPL) up 4.69 to $127.64 - on positive comments about iphone sales
EOG Resources Inc. (EOG) up 12.89 to $118.50 - boosted its 2009 and 2010 organic production growth estimates to 13% to 15% from the previously stated annual average of 10%.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• American International Group (AIG). Expected to post Q4 earnings of $0.60 cents a share, according to analysts polled by Thomson Financial.
• Barr Pharmaceuticals Inc. (BRL). Expected to post Q4 profit of $0.74 a share.
• Cablevision Systems Corp. (CVC). Expected to report Q4 earnings of $0.11 a share.
• Cooper Tire & Rubber Co. (CTB). Expected to report Q4 profit of $0.36 a share.
• Dell Inc. (DELL). Expected to report Q4 earnings of $0.36 a share.
• Fluor Corp. (FLR). Expected to report Q4 earnings of $1.18 a share.
• Gap Inc. (GPS). Expected to report Q4 earnings of $0.35 a share.
• Hansen Natural Corp. (HANS). Expected to report Q4 profit of $0.38 a share.
• Kohl's Corp. (KSS). Expected to report Q4 profit of $1.30 per share.
• Leap Wireless International Inc. (LEAP). Expected to post Q4 loss of $0.17 a share.
• Liberty Media Holding Corp. (LINTA). Expected to post Q4 profit of $0.30 a share.
• Rowan Cos. (RDC). Expected to report Q4 profit of $1.18 a share.
• Universal Health Services Inc. (UHS). Expected to post Q4 profit of $0.70 a share.
• United Rentals Inc. (URI). Expected to report Q4 profit of $0.73 a share.
• Viacom Inc. (VIA). Expected to post Q4 earnings of $0.83 a share.
• XM Satellite Radio Holdings Inc. (XMSR). Expected to post Q4 loss of $0.63 a share.
• American International Group (AIG). Expected to post Q4 earnings of $0.60 cents a share, according to analysts polled by Thomson Financial.
• Barr Pharmaceuticals Inc. (BRL). Expected to post Q4 profit of $0.74 a share.
• Cablevision Systems Corp. (CVC). Expected to report Q4 earnings of $0.11 a share.
• Cooper Tire & Rubber Co. (CTB). Expected to report Q4 profit of $0.36 a share.
• Dell Inc. (DELL). Expected to report Q4 earnings of $0.36 a share.
• Fluor Corp. (FLR). Expected to report Q4 earnings of $1.18 a share.
• Gap Inc. (GPS). Expected to report Q4 earnings of $0.35 a share.
• Hansen Natural Corp. (HANS). Expected to report Q4 profit of $0.38 a share.
• Kohl's Corp. (KSS). Expected to report Q4 profit of $1.30 per share.
• Leap Wireless International Inc. (LEAP). Expected to post Q4 loss of $0.17 a share.
• Liberty Media Holding Corp. (LINTA). Expected to post Q4 profit of $0.30 a share.
• Rowan Cos. (RDC). Expected to report Q4 profit of $1.18 a share.
• Universal Health Services Inc. (UHS). Expected to post Q4 profit of $0.70 a share.
• United Rentals Inc. (URI). Expected to report Q4 profit of $0.73 a share.
• Viacom Inc. (VIA). Expected to post Q4 earnings of $0.83 a share.
• XM Satellite Radio Holdings Inc. (XMSR). Expected to post Q4 loss of $0.63 a share.
Sears Profits Get Cut in Half...
Retailer's 4Q profit falls by nearly half to $426 million, or $3.17 a share, from last year's $811 million, or $5.27 a share, on a lower margins and 7% revenue drop on markdowns. Analysts were expecting earnings of $3.05 a share.
Not surprising if you have been in one of their stores lately.
Not surprising if you have been in one of their stores lately.
Wednesday, February 27, 2008
Wednesday's Summary....
U.S. Markets:
Dow +9.36 (+0.07%)
Nasdaq +8.79 (+0.37%)
S&P 500 -1.27 (-0.09%)
News That Moved the Market
Cap Lifted For Home Loan Providers. The markets took off early in the session on news that the Office of Federal Housing Enterprise Oversight decided to remove Fannie Mae's (FNM, +1.1%) and Freddie Mac's (FRE, -0.5%) $1.5 trillion mortgage portfolio cap. The cap was created after the two companies found $11.3 billion in accounting errors in 2006. The lenders should now be better able to provide financing for the U.S.'s troubled housing market.
Earlier in the morning, Fannie Mae reported a greater than expected $3.6 billion loss and shares of the company hit a 12-year low, but news of the regulator's decision turned the stock around. Later in the day, the markets sold off, as investors pocketed profits. It seems many do not want to leave profits on the table when a bad piece of data or headline could erase any gains.
Bernanke Signals Further Rate Cuts. Fed Chairman Ben Bernanke spoke in front of the Senate Banking Committee Wednesday and provided some relief to investors. Despite rising inflation pressures, he indicated the Fed would continue easing rates as economic downside risks remained the key focus.
Economic Data Misses Estimates. The Commerce Department reported durable goods fell 5.3%, which was slightly worse than expected. Meanwhile, new homes sales came in at 588,000, missing the 600,000 expected and representing a 13-year low. Both pieces of data were not horrible, but showed signs of a deteriorating economy.
Quick Tics:
The EU slapped Microsoft (MSFT, -0.4%) with a record $1.35 billion anti-trust fine.
The U.S. dollar hit a record low against the euro ($1.5118/euro) after Bernanke signaled further rate cuts.
Gold futures hit an all-time high of $967.70/ounce.
Nortel Networks (NT, -13.3%) reported steeper losses, announced job cuts, and released a worse than expected growth forecast for 2008.
Tomorrow Notable Earnings:
Cablevision Systems Corp.(CVC) Before Open
Dell, Inc. (DELL) Before Open
Gap Inc. (GPS) After Close
Kohls Corporation (KSS) After Close
Sears Holdings Corp (SHLD) Before Open
Viacom (VIA) After Close
XM Satellite Radio (XMSR) Before Open
Economic Events:
8:30 AM: GDP
8:30 AM: Chain Deflator
8:30 AM: Initial Job Claims
Dow +9.36 (+0.07%)
Nasdaq +8.79 (+0.37%)
S&P 500 -1.27 (-0.09%)
News That Moved the Market
Cap Lifted For Home Loan Providers. The markets took off early in the session on news that the Office of Federal Housing Enterprise Oversight decided to remove Fannie Mae's (FNM, +1.1%) and Freddie Mac's (FRE, -0.5%) $1.5 trillion mortgage portfolio cap. The cap was created after the two companies found $11.3 billion in accounting errors in 2006. The lenders should now be better able to provide financing for the U.S.'s troubled housing market.
Earlier in the morning, Fannie Mae reported a greater than expected $3.6 billion loss and shares of the company hit a 12-year low, but news of the regulator's decision turned the stock around. Later in the day, the markets sold off, as investors pocketed profits. It seems many do not want to leave profits on the table when a bad piece of data or headline could erase any gains.
Bernanke Signals Further Rate Cuts. Fed Chairman Ben Bernanke spoke in front of the Senate Banking Committee Wednesday and provided some relief to investors. Despite rising inflation pressures, he indicated the Fed would continue easing rates as economic downside risks remained the key focus.
Economic Data Misses Estimates. The Commerce Department reported durable goods fell 5.3%, which was slightly worse than expected. Meanwhile, new homes sales came in at 588,000, missing the 600,000 expected and representing a 13-year low. Both pieces of data were not horrible, but showed signs of a deteriorating economy.
Quick Tics:
The EU slapped Microsoft (MSFT, -0.4%) with a record $1.35 billion anti-trust fine.
The U.S. dollar hit a record low against the euro ($1.5118/euro) after Bernanke signaled further rate cuts.
Gold futures hit an all-time high of $967.70/ounce.
Nortel Networks (NT, -13.3%) reported steeper losses, announced job cuts, and released a worse than expected growth forecast for 2008.
Tomorrow Notable Earnings:
Cablevision Systems Corp.(CVC) Before Open
Dell, Inc. (DELL) Before Open
Gap Inc. (GPS) After Close
Kohls Corporation (KSS) After Close
Sears Holdings Corp (SHLD) Before Open
Viacom (VIA) After Close
XM Satellite Radio (XMSR) Before Open
Economic Events:
8:30 AM: GDP
8:30 AM: Chain Deflator
8:30 AM: Initial Job Claims
My Daughter Says Buy Abercrombie & Fitch....
No kidding. ANF is the owner of the Hollister chain...and this is the hottest store for young teens.
The stock is up .75 to $81.75 today. Technically...the stock has alot of resistance at $84-85 level. We'll keep an eye on it and let you know if it breaks out.
The stock is up .75 to $81.75 today. Technically...the stock has alot of resistance at $84-85 level. We'll keep an eye on it and let you know if it breaks out.
Technical Alert: Sony Corp.(SNE)
We have been following Sony Corp., as the company has had alot of wins over the past month. The stock is higher again today on high volume, currently up .60 to $49.50. It has climbed out of a base, up 20%, in the last two weeks.
Next resistance is at $55-56 level.
Next resistance is at $55-56 level.
Technical Alert: Juniper (JNPR)
Juniper Networks is breaking higher out of one month base on higher volume.
The stock is up 1.25 to $28.75 today. The stock was looking strong in the low 30's back in December before the market sold off the first few weeks in January.
The stock is up 1.25 to $28.75 today. The stock was looking strong in the low 30's back in December before the market sold off the first few weeks in January.
Technical Alert: Research in Motion (RIMM)
Research in Motion is breaking higher out of a cup and handle formation on higher volume.
The stock is up 3.12 to $110.87. The next level of resistance on the stock is at $122.
The stock is up 3.12 to $110.87. The next level of resistance on the stock is at $122.
Upgrades this morning...
Stocks that have been Upgraded this Morning:
Healthways (HWAY) by Stifel Nicolaus
AXT Inc (AXTI) by Roth Capital
Medarex (MEDX) by BMO Capital Markets
SuperGen (SUPG) by Susquehanna Financial
Xilinx (XLNX) by UBS
Overseas Shipholding (OSG) by Bear Stearns
Tenet Healthcare (THC) by Jefferies & Co
Telefonica S.A. (TEF) by UBS
Healthways (HWAY) by Stifel Nicolaus
AXT Inc (AXTI) by Roth Capital
Medarex (MEDX) by BMO Capital Markets
SuperGen (SUPG) by Susquehanna Financial
Xilinx (XLNX) by UBS
Overseas Shipholding (OSG) by Bear Stearns
Tenet Healthcare (THC) by Jefferies & Co
Telefonica S.A. (TEF) by UBS
Downgrades this morning...
Here is a list of stocks that have been Downgraded this morning:
Autodesk (ADSK) by Needham & Co
Ceradyne (CRDN) by Morgan Joseph
Orthofix (OFIX) by Susquehanna Financial
NovaGold Resources (NG) by RBC Capital Mkts
K-Swiss (KSWS) by Susquehanna Financial
Solarfun Power (SOLF) by Banc of America Sec
JA Solar (JASO) by Banc of America Sec
Chesapeake Energy (CHK) by Citigroup
Quicksilver (KWK) by Citigroup
EOG Resources (EOG) by Citigroup
SW Energy (SWN) by Citigroup
Barrick Gold (ABX) by Credit Suisse
Ultra Petroleum (UPL) by JP Morgan
Autodesk (ADSK) by Needham & Co
Ceradyne (CRDN) by Morgan Joseph
Orthofix (OFIX) by Susquehanna Financial
NovaGold Resources (NG) by RBC Capital Mkts
K-Swiss (KSWS) by Susquehanna Financial
Solarfun Power (SOLF) by Banc of America Sec
JA Solar (JASO) by Banc of America Sec
Chesapeake Energy (CHK) by Citigroup
Quicksilver (KWK) by Citigroup
EOG Resources (EOG) by Citigroup
SW Energy (SWN) by Citigroup
Barrick Gold (ABX) by Credit Suisse
Ultra Petroleum (UPL) by JP Morgan
Costco Down as Goldman Cuts Rating on Co....
Shares of Costco Wholesale Corp. (COST) is down 2.4% to $64.86 after Goldman Sachs cut its rating on the warehouse retailer to neutral from buy.
In a note to clients, Goldman Sachs analyst Adrianne Shapira wrote that "with current relative valuation well above historic averages and limited remaining catalysts on the horizon, we view current risk/reward less compelling."
The stock appeared to be breaking out yesterday, but this downgrade should cause it to pull back. It has key support at $62.50.
In a note to clients, Goldman Sachs analyst Adrianne Shapira wrote that "with current relative valuation well above historic averages and limited remaining catalysts on the horizon, we view current risk/reward less compelling."
The stock appeared to be breaking out yesterday, but this downgrade should cause it to pull back. It has key support at $62.50.
Netflix Up After Boosting 1Q Outlook...
Shares of Netflix Inc. (NFLX) are up 6.9% to $31 before the opening bell Wednesday after the online DVD rental service boosted its first-quarter earnings outlook.
The Los Gatos, Calif., company said it now sees first-quarter earnings of 15 cents to 22 cents a share on revenue of $324 million to $328 million. The company had previously forecast first quarter earnings of 13 cents to 21 cents a share on revenue of $323 million to $328 million.
Analysts expect, on average, earnings of 20 cents a share on revenue of $325 million.
In addition, Netflix sees first-quarter ending subscribers of 8.16 million to 8.26 million, up from a prior view of 7.85 million to 8.05 million ending subscribers.
Not much of a raise, but...
The Los Gatos, Calif., company said it now sees first-quarter earnings of 15 cents to 22 cents a share on revenue of $324 million to $328 million. The company had previously forecast first quarter earnings of 13 cents to 21 cents a share on revenue of $323 million to $328 million.
Analysts expect, on average, earnings of 20 cents a share on revenue of $325 million.
In addition, Netflix sees first-quarter ending subscribers of 8.16 million to 8.26 million, up from a prior view of 7.85 million to 8.05 million ending subscribers.
Not much of a raise, but...
US January Durable Goods Orders Drop 5.3%..
Orders for durable goods fall 5.3% to $212.80 billion and a barometer of capital spending by businesses slumps, an indication the sluggish economy might be restraining companies. Economists expected a smaller 4% decrease in durable goods orders.
US Stock futures dropped on the news...
US Stock futures dropped on the news...
Bernanke Speaks to Congress this Morning...
Eyes will be trained on Washington D.C. on Wednesday as Bernanke begins his two days of Congressional testimony, starting at 10 a.m. Eastern.
Vice Chairman Donald Kohn on Tuesday said that, despite signs that inflation actually strengthened in January, the nation's weak economy and fragile financial markets remain a bigger threat than higher prices. Kohn's views are generally thought to be closely aligned with Bernanke's.
In the last six months, traders have been selling off the market EVERY time either Bernanke or Bush appear on TV. It is obvious neither guy has any respect on Wall Street. Stock futures are already down in anticipation...
Vice Chairman Donald Kohn on Tuesday said that, despite signs that inflation actually strengthened in January, the nation's weak economy and fragile financial markets remain a bigger threat than higher prices. Kohn's views are generally thought to be closely aligned with Bernanke's.
In the last six months, traders have been selling off the market EVERY time either Bernanke or Bush appear on TV. It is obvious neither guy has any respect on Wall Street. Stock futures are already down in anticipation...
J&J, Amgen Fall on New Study...
Anemia drugs Aranesp and Procrit sold by Amgen (AMGN) and Johnson & Johnson (JNJ) raise the risk of death among cancer patients by about 10%, a new study of previous trials found. Amgen played down the study, saying the risks are already in the drugs' labels.
The FDA will convene in March to decide whether to impose further restrictions on the drugs, commonly used to treat chemotherapy-induced anemia. Shares of Amgen and J&J were down 3.2% and 1.15% in Europe.
The FDA will convene in March to decide whether to impose further restrictions on the drugs, commonly used to treat chemotherapy-induced anemia. Shares of Amgen and J&J were down 3.2% and 1.15% in Europe.
Dollar Tumbles...
The U.S. dollar hit record lows against the euro after weak consumer confidence and surprise inflation raised the odds of further interest-rate cuts.
Consumer Confidence fell to 75 vs. 82 consensus, down from 87.3 -- its lowest in nearly 15 years. Both core (+0.4%) and headline (+1%) wholesale inflation surprised to the upside; 12-month PPI of 7.4% is at its highest in over 25 years.
Consumer Confidence fell to 75 vs. 82 consensus, down from 87.3 -- its lowest in nearly 15 years. Both core (+0.4%) and headline (+1%) wholesale inflation surprised to the upside; 12-month PPI of 7.4% is at its highest in over 25 years.
EU Hits Mocrosoft With $1.3B Fine...
The EU fined Microsoft (MSFT) a record $1.3 billion for overcharging developers for interoperability information needed to develop Windows-compatible software. Microsoft noted the fines related to past issues that have been resolved.
Microsoft has dropped licensee royalty demands from 2.98%-3.87% to 0.5-0.7% and later to a flat fee of $14,000 for interoperability info and a worldwide patent license for 0.4%. There was speculation a penalty could go as high as $2.2B.
Microsoft has dropped licensee royalty demands from 2.98%-3.87% to 0.5-0.7% and later to a flat fee of $14,000 for interoperability info and a worldwide patent license for 0.4%. There was speculation a penalty could go as high as $2.2B.
Toll Bros. Misses, But Sees Glimmers of Hope...
Number-one U.S. luxury homebuilder Toll Brothers (TOL) posted a $0.61/share loss, exceeding the -$0.44 expected by analysts. The loss included a $245M writedown, net of which Toll earned $0.35/share. Net contracts signed fell 50% to $375M; backlog fell 42% to $2.4B.
CEO Robert Toll was again critical of the media's relentless 'drumbeat' recession talk, which he said dampens consumers' moods and keeps them from buying. Toll said selling remains weak, but that it sees a few "glimmers of hope."
CEO Robert Toll was again critical of the media's relentless 'drumbeat' recession talk, which he said dampens consumers' moods and keeps them from buying. Toll said selling remains weak, but that it sees a few "glimmers of hope."
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Dollar Tree Stores Inc. (DLTR). Projected to post a Q4 profit of $1.02 a share, up 5.73% from $0.96 earned per share same time previous year.
• Dress Barn Inc. (DBRN). Estimated to report a Q2 profit of $0.06 a share, down 75% from the same quarter last year when the company earned $0.24.
• Limited Brands (LTD). Forecast to post Q4 earnings of $0.91 a share, a decrease of 15.37% from the same quarter last year when the company earned $1.08.
• McDermott International Inc. (MDR). Expected to report Q4 earnings of $0.65 a share, a change of 77.26% from the same quarter last year when the company earned $0.37.
• Noble Energy Inc. (NBL). Expected to report Q4 earnings of $1.63 a share, a change of 57.86% from the same quarter last year when the company earned $1.03.
• Owens Corning Inc. (OC). Likely to report a Q4 profit of $0.19 a share, against a loss of $0.16 earned the same quarter last year.
• Petrohawk Energy Corp. (HK). Likely to report a Q4 profit of $0.15 a share, a change of 143.33% from the same quarter last year when the company earned $0.06.
• Public Storage (PSA). Estimated to report a Q4 profit of $0.28 a share, compared to a loss of $0.48 same quarter last year.
• Salesforce.com (CRM). Expected to report Q4 earnings of $0.04 a share.
• Washington Post Co. (WPO) is expected to report Q4 earnings of $8.85 a share, a change of -3.80% from the same quarter last year when the company earned $9.20.
• Dollar Tree Stores Inc. (DLTR). Projected to post a Q4 profit of $1.02 a share, up 5.73% from $0.96 earned per share same time previous year.
• Dress Barn Inc. (DBRN). Estimated to report a Q2 profit of $0.06 a share, down 75% from the same quarter last year when the company earned $0.24.
• Limited Brands (LTD). Forecast to post Q4 earnings of $0.91 a share, a decrease of 15.37% from the same quarter last year when the company earned $1.08.
• McDermott International Inc. (MDR). Expected to report Q4 earnings of $0.65 a share, a change of 77.26% from the same quarter last year when the company earned $0.37.
• Noble Energy Inc. (NBL). Expected to report Q4 earnings of $1.63 a share, a change of 57.86% from the same quarter last year when the company earned $1.03.
• Owens Corning Inc. (OC). Likely to report a Q4 profit of $0.19 a share, against a loss of $0.16 earned the same quarter last year.
• Petrohawk Energy Corp. (HK). Likely to report a Q4 profit of $0.15 a share, a change of 143.33% from the same quarter last year when the company earned $0.06.
• Public Storage (PSA). Estimated to report a Q4 profit of $0.28 a share, compared to a loss of $0.48 same quarter last year.
• Salesforce.com (CRM). Expected to report Q4 earnings of $0.04 a share.
• Washington Post Co. (WPO) is expected to report Q4 earnings of $8.85 a share, a change of -3.80% from the same quarter last year when the company earned $9.20.
Tuesday, February 26, 2008
IBD's Top 10 Stocks....
From the Monday Special Edition of Investor's Business Daily, here are their Top 10 Rated Stocks:
1. Dryships (DRYS)
2. Potash (POT)
3. Bucyrus International (BUCY)
4. Intuitive Surgical (ISRG)
5. CF Industries (CF)
6. China Medical (CMED)
7. Titan Machinery (TITN)
8. FC Stone Group (FCSX)
9. Research in Motion (RIMM)
10. Vimple Comunications (VIP)
1. Dryships (DRYS)
2. Potash (POT)
3. Bucyrus International (BUCY)
4. Intuitive Surgical (ISRG)
5. CF Industries (CF)
6. China Medical (CMED)
7. Titan Machinery (TITN)
8. FC Stone Group (FCSX)
9. Research in Motion (RIMM)
10. Vimple Comunications (VIP)
Tuesday's Summary....
U.S. Markets:
Dow +114.70 (+0.91%)
Nasdaq +17.51 (+0.75%)
S&P 500 +9.49 (+0.69%)
News That Moved the Market:
IBM Announcements Push Markets Higher. Some days you take what you can get and do not ask why. Despite a deluge of bad news this morning (see below), the markets traded higher as investors focused on IBM's (IBM, +3.9%) announcement of a new $15 billion buyback plan and increased outlook. After the news came out in during mid-morning trading, stocks took off. IBM increased its EPS estimate for 2008 by $0.05, and said it has seen strength in foreign markets and received a boost from acquisitions.
Weak Data From All Directions. The Labor Department reported the Producer's Price Index came in at 1.0%, while core-PPI increased by 0.4%. Both readings were well ahead of expectations and put the Fed in a tough position of fending off inflation while trying to stimulate growth. The Conference Board reported consumer confidence fell to a 5-year low, and the S&P/Case-Shiller home price index showed that prices plummeted 8.9% in the fourth quarter of 2007, compared to the year before. With signs of a weak economy and increasing inflation, fears of stagflation jumped.
Target Sees Tough First Half of 2008. Target (TGT, +3.1%) reported earnings before the bell that beat expectations by a penny, but said it expects to see "a challenging economic climate at least through the first half of the year." The company has seen shoppers buying more necessities and less higher margin items such as clothing.
Quick Tics:
Google (GOOG, -4.6%) continued its drop today on news that its pay-per-click advertising may be weakening.
Radio Shack (RSH, +21.5%) jumped after better than expected fourth quarter financial results.
Crude finished up 1.9% to $101.09, a new closing high.
Tomorrow Notable Earnings:
Toll Brothers(TOL) Before Open
Nortel Networks (NT) Before Open
Dollar Tree Stores (DLTR) Time Not Supplied
Economic Events:
8:30 AM: Durable Goods
10:00 AM: New Home Sales
10:30 AM: Crude Inventories
Dow +114.70 (+0.91%)
Nasdaq +17.51 (+0.75%)
S&P 500 +9.49 (+0.69%)
News That Moved the Market:
IBM Announcements Push Markets Higher. Some days you take what you can get and do not ask why. Despite a deluge of bad news this morning (see below), the markets traded higher as investors focused on IBM's (IBM, +3.9%) announcement of a new $15 billion buyback plan and increased outlook. After the news came out in during mid-morning trading, stocks took off. IBM increased its EPS estimate for 2008 by $0.05, and said it has seen strength in foreign markets and received a boost from acquisitions.
Weak Data From All Directions. The Labor Department reported the Producer's Price Index came in at 1.0%, while core-PPI increased by 0.4%. Both readings were well ahead of expectations and put the Fed in a tough position of fending off inflation while trying to stimulate growth. The Conference Board reported consumer confidence fell to a 5-year low, and the S&P/Case-Shiller home price index showed that prices plummeted 8.9% in the fourth quarter of 2007, compared to the year before. With signs of a weak economy and increasing inflation, fears of stagflation jumped.
Target Sees Tough First Half of 2008. Target (TGT, +3.1%) reported earnings before the bell that beat expectations by a penny, but said it expects to see "a challenging economic climate at least through the first half of the year." The company has seen shoppers buying more necessities and less higher margin items such as clothing.
Quick Tics:
Google (GOOG, -4.6%) continued its drop today on news that its pay-per-click advertising may be weakening.
Radio Shack (RSH, +21.5%) jumped after better than expected fourth quarter financial results.
Crude finished up 1.9% to $101.09, a new closing high.
Tomorrow Notable Earnings:
Toll Brothers(TOL) Before Open
Nortel Networks (NT) Before Open
Dollar Tree Stores (DLTR) Time Not Supplied
Economic Events:
8:30 AM: Durable Goods
10:00 AM: New Home Sales
10:30 AM: Crude Inventories
Beats and Raises Portfolio....
Reviewing earnings reports since January 1....
Here is an updated list of companies that have Beat Earnings Expectations AND have Raised Guidance for 2008.
These stocks are acting really well in here:
Potash (POT)
Terex (TEX)
Intuitive Surgical (ISRG)
Hewlett-Packard (HPQ)
Medco Health (MHS)
Buffalo Wild Wings (BWLD)
Gamestop (GME)
Mosanto (MON)
JC Penney (JCP)
Zimmer Holdings (ZMH)
Sohu (SOHU)
Dolby Labs (DLB)
Research in Motion (RIMM)
Express Scripts (ESRX)
Boeing (BA)
Chattem (CHTT)
Corning (GLW)
IBM (IBM)
Here is an updated list of companies that have Beat Earnings Expectations AND have Raised Guidance for 2008.
These stocks are acting really well in here:
Potash (POT)
Terex (TEX)
Intuitive Surgical (ISRG)
Hewlett-Packard (HPQ)
Medco Health (MHS)
Buffalo Wild Wings (BWLD)
Gamestop (GME)
Mosanto (MON)
JC Penney (JCP)
Zimmer Holdings (ZMH)
Sohu (SOHU)
Dolby Labs (DLB)
Research in Motion (RIMM)
Express Scripts (ESRX)
Boeing (BA)
Chattem (CHTT)
Corning (GLW)
IBM (IBM)
Today's Upgrades...
List of Companies Upgraded this Morning:
Kendle (KNDL) by First Analysis Sec
EMC Corp (EMC) by Cowen & Co
AthenaHealth (ATHN) by Piper Jaffray
Brinks (BCO) by Jefferies & Co
MasterCard (MA) by Credit Suisse
Repsol SA (REP) by Bear Stearns
Occidental Petro (OXY) by Oppenheimer
OmniVision (OVTI) by Jefferies & Co
Rite Aid (RAD) by JP Morgan
Quantum (QTM) by JP Morgan
Hutchinson (HTCH) by JP Morgan
PG&E (PCG) by JP Morgan
Teradyne (TER) by Oppenheimer
Kendle (KNDL) by First Analysis Sec
EMC Corp (EMC) by Cowen & Co
AthenaHealth (ATHN) by Piper Jaffray
Brinks (BCO) by Jefferies & Co
MasterCard (MA) by Credit Suisse
Repsol SA (REP) by Bear Stearns
Occidental Petro (OXY) by Oppenheimer
OmniVision (OVTI) by Jefferies & Co
Rite Aid (RAD) by JP Morgan
Quantum (QTM) by JP Morgan
Hutchinson (HTCH) by JP Morgan
PG&E (PCG) by JP Morgan
Teradyne (TER) by Oppenheimer
Today's Downgrades....
List of Stocks Downgraded this Morning:
World Wrestling (WWE) by B. Riley & Co
Granite City Food & Brewery (GCFB) by Feltl & Co.
Steel Dynamics (STLD) by UBS
Gerdau AmeriSteel (GNA) by UBS
Ryder System (R) by Stifel Nicolaus
Del Monte (DLM) by Wachovia
Automatic Data Processing (ADP) by Banc of America Sec
Paychex (PAYX) by Banc of America Sec
World Wrestling (WWE) by B. Riley & Co
Granite City Food & Brewery (GCFB) by Feltl & Co.
Steel Dynamics (STLD) by UBS
Gerdau AmeriSteel (GNA) by UBS
Ryder System (R) by Stifel Nicolaus
Del Monte (DLM) by Wachovia
Automatic Data Processing (ADP) by Banc of America Sec
Paychex (PAYX) by Banc of America Sec
ISRG: Setting up for a Breakout....
Intuitive Surgical (ISRG) is forming a very interesting pattern on the daily chart. Looks like a snake coiling up, ready to break higher.
The stock is up 3.49 to $297.04. It is down from a 52-week high of $359 set in December.
This is another stock that beat estimates and raised guidance for 2008. If you want clean stocks in this market, those are two criteria you want to see.
The stock is up 3.49 to $297.04. It is down from a 52-week high of $359 set in December.
This is another stock that beat estimates and raised guidance for 2008. If you want clean stocks in this market, those are two criteria you want to see.
Check Out Imclone (IMCL)
That's right...Martha Stewart's favorite stock...
IMCL is up 1.44 to $45.84 this morning. The stock is making a run to push thru resistance in the $45-46 area.
The stock was just upgraded to Outperform by Cowen and Company on Friday.
IMCL is up 1.44 to $45.84 this morning. The stock is making a run to push thru resistance in the $45-46 area.
The stock was just upgraded to Outperform by Cowen and Company on Friday.
Technical Alert: Cree Inc. Breaking out...
Cree Inc. (CREE) is breaking out to new highs this morning. The stock is currently up 1.76 to $34.55. It hit $35 earlier.
The stock had significant resitance at $34.
The stock had significant resitance at $34.
Terex Continues to Break Out...
Terex (TEX) is continuing to break higher this morning, for the 6th straight session.
The stock is up 1.66 to $70.76
The stock is up 1.66 to $70.76
Frontier Misses but Stock Rises...
Frontier Oil Corp.'s (FTO) fourth-quarter net income fell to $43.4 million, or 41 cents a share, from $52.4 million, or 47 cents a share, a year earlier. A Thomson Financial survey of analysts, on average, projected earnings of 46 cents a share for the quarter.
The Houston refiner's fourth-quarter results included a hedging loss of $31.5 million, or 30 cents a share, compared with the gain of $6.9 million, or 6 cents a share, a year ago. Revenue rose to $1.32 billion from $1.09 billion a year ago.
FTO is up 1.01 to $38.65 right now.
The Houston refiner's fourth-quarter results included a hedging loss of $31.5 million, or 30 cents a share, compared with the gain of $6.9 million, or 6 cents a share, a year ago. Revenue rose to $1.32 billion from $1.09 billion a year ago.
FTO is up 1.01 to $38.65 right now.
IBM Plans $15B Buyback...Boosts Guidance...
International Business Machines Corp. (IBM) said Tuesday its board authorized the repurchase of $15 billion in shares, which could boost its earnings for 2008. The new plan is in addition to the $400 million left on a previous buyback plan. IBM said it plans to make about $12 billion in stock repurchases in 2008. The company said expected buyback activity could add about 5 cents a share to 2008 earnings, and now expects a profit of at least $8.25 a share for the year. Analysts surveyed by FactSet Research expect 2008 earnings of $8.21 a share.
IBM had boosted guidance back on January 18, when they reported earnings. I guess analysts were a bit skeptical and delayed making adjustments in their estimates....
IBM stock is up 3 to $113.14. It is breaking out above resistance it had in the $112 area.
IBM had boosted guidance back on January 18, when they reported earnings. I guess analysts were a bit skeptical and delayed making adjustments in their estimates....
IBM stock is up 3 to $113.14. It is breaking out above resistance it had in the $112 area.
Sirius / XM Update...
Sirius (SIRI) remains optimistic it will hear favorable information in the near future regarding long-awaited merger with XM (XMSR), SIRI CEO Mel Karmazin says on conference call. He won't provide 2008 guidance until there's regulatory clarity, which "hopefully will be very shortly." CEO says he hasn't had additional contact with Justice Dept. "We wait by our telephone, but we really have not heard anything from them. It has been more radio silence than anything else," Karmazin says. Reiterates SIRI's costs would increase if merger isn't approved.
Both stocks have been going nowhere since the merger possibility was announced: Siri is at $3.01 and XMSR is at $12.90
Both stocks have been going nowhere since the merger possibility was announced: Siri is at $3.01 and XMSR is at $12.90
Google Advertising Slows...
The Street is surprised at Google's (GOOG) sharply lower paid-click-through rates and slower search growth in January, based on comScore report. Percentage of GOOG's paid-advertiser clicks dropped to 10.4% in January from 12.4% in December, reaching the lowest rate since comScore began tracking in July 2006. BMO Capital believes data just reflects GOOG culling "accidental clicks" to improve search quality.
Bear Stearns calls it a "concerning data point" that jibes with what Internet marketers have been saying: "that they were not seeing a high volume of clicks from consumers possibly due to the economic slowdown."
GOOG stock is down 6.9% to $453, lowest since last April.
Bear Stearns calls it a "concerning data point" that jibes with what Internet marketers have been saying: "that they were not seeing a high volume of clicks from consumers possibly due to the economic slowdown."
GOOG stock is down 6.9% to $453, lowest since last April.
Target 4Q Net Down...
Target 4Q Net Down 8.1% On Retail Weakness
Target's fiscal 4Q net income falls 8.1% to $1.03 billion, or $1.23 a share, as credit-card operations could not offset losses in Target's core retail operations.
Analysts were expecting earnings $1.22 a share.
Target is trading higher by .50 to $53.77
Target's fiscal 4Q net income falls 8.1% to $1.03 billion, or $1.23 a share, as credit-card operations could not offset losses in Target's core retail operations.
Analysts were expecting earnings $1.22 a share.
Target is trading higher by .50 to $53.77
Technical Alert: Google Breaking Down....
Google broke down yesterdy in the midst of a strong market. The stock closed just below previous support which was at $490. This morning Google is going to open at $461.
That is not good at all....If you are in Google...be careful...this stock could come down very fast.
That is not good at all....If you are in Google...be careful...this stock could come down very fast.
Futures Reverse on PPI Number....
US Producer Prices Up 1%, Core Gains 0.4%
U.S. wholesale prices surge more than anticipated in January and core inflation also climbs above expectations, according to more data revealing price pressures amid the economic slowdown. In the 12 months ending in January, prices climbed 7.4% on an unadjusted basis.
Stock futures reversed corse on the news, they are now considerably lower.
U.S. wholesale prices surge more than anticipated in January and core inflation also climbs above expectations, according to more data revealing price pressures amid the economic slowdown. In the 12 months ending in January, prices climbed 7.4% on an unadjusted basis.
Stock futures reversed corse on the news, they are now considerably lower.
Nordstrom Beats Buts Sees Tough 2008...
Nordstrom (JWN) posted Q4 EPS of $0.92, beating consensus estimates of $0.88. Revenue fell 4.4% to $2.51B, just short of the $2.53B consensus. Looking ahead, Nordstrom sees Q1 EPS of $0.49-0.54 (vs. $0.59 consensus) and full-year EPS of $2.75-2.90 (vs. $2.98 consensus). Same-store sales will be flat to -2%, it said. "Certainly, it's a difficult environment. ... The higher-end consumer is slowing spending a bit," analyst Dan Geiman said.
Foster Wheeler Misses....
Foster Wheeler Ltd. (FWLT). The Clinton, NJ-based engineering and construct company today said adjusted fourth-quarter income dropped to $80.6 million, or 56 cents a share, compared with $85.9 million, or 60 cents a share, a year-ago.
Revenue for the quarter rose to $1.47 billion from last year's $1.19 billion.
The company was anticipated to earn 76 cents a share. The stock is down 7 points to $72.50 premarket.
Revenue for the quarter rose to $1.47 billion from last year's $1.19 billion.
The company was anticipated to earn 76 cents a share. The stock is down 7 points to $72.50 premarket.
Earnings Due Today....
COMPANIES REPORTING EARNINGS:
• Autodesk Inc. (ADSK). Expected to report a Q4 profit of $0.54 a share, according to analysts polled by Thomson Financial. This is an increase of 16.96% from $0.46 earned per share same time previous year.
• DreamWorks Animation SKG (DWA). Expected to post a Q4 profit of $0.72 a share.
• El Paso Corp. (EP). Forecast to report a Q4 profit of $0.29 a share, compared to a $0.25 per share loss posted same time previous year.
• Frontier Oil Corp. (FTO). Projected to report Q4 earnings of $0.46 a share, down 32.75% from $0.69 per share earned same time previous year.
• H.J. Heinz Co. (HNZ). Projected to post a Q3 profit of $0.67 a share, which is largely unchanged from $0.66 earned per share same time previous year.
• Macy's Inc. (M). Expected to report Q4 earnings of $1.60 a share, a 3.5% fall from $1.66 earned per share same time previous year.
• Sempra Energy (SRE). Forecast to report Q4 earnings of $1.05 a share, down 26.41% from $1.42 earned per share same time previous year.
• Target (TGT). Forecast to post Q4 earnings of $1.22 a share, down 5.12% from $1.29 per share earned same time previuos year.
• Tenet Healthcare Corp. (THC). Expected to report a Q4 loss of $0.03 a share.
• Warnaco Group (WRNC). Estimated to report a Q4 profit of $0.38 a share, a decline of 30.73% from $0.55 earned per share smae time previous year.
• Autodesk Inc. (ADSK). Expected to report a Q4 profit of $0.54 a share, according to analysts polled by Thomson Financial. This is an increase of 16.96% from $0.46 earned per share same time previous year.
• DreamWorks Animation SKG (DWA). Expected to post a Q4 profit of $0.72 a share.
• El Paso Corp. (EP). Forecast to report a Q4 profit of $0.29 a share, compared to a $0.25 per share loss posted same time previous year.
• Frontier Oil Corp. (FTO). Projected to report Q4 earnings of $0.46 a share, down 32.75% from $0.69 per share earned same time previous year.
• H.J. Heinz Co. (HNZ). Projected to post a Q3 profit of $0.67 a share, which is largely unchanged from $0.66 earned per share same time previous year.
• Macy's Inc. (M). Expected to report Q4 earnings of $1.60 a share, a 3.5% fall from $1.66 earned per share same time previous year.
• Sempra Energy (SRE). Forecast to report Q4 earnings of $1.05 a share, down 26.41% from $1.42 earned per share same time previous year.
• Target (TGT). Forecast to post Q4 earnings of $1.22 a share, down 5.12% from $1.29 per share earned same time previuos year.
• Tenet Healthcare Corp. (THC). Expected to report a Q4 loss of $0.03 a share.
• Warnaco Group (WRNC). Estimated to report a Q4 profit of $0.38 a share, a decline of 30.73% from $0.55 earned per share smae time previous year.
Sony and Sharp in LCD Panel Venture...
Sony (SNE) and Sharp say they have agreed to jointly produce LCD panels for televisions using a state-of-the-art Sharp plant currently under construction in western Japan. Venture to be established in April 2009, production by March 2010.
RadioShack 4Q Net Up 20% On Cost Cuts
RadioShack (RSH) posts a 20% increase in fiscal 4Q net income to $101 million, or 77 ¢ a share, as the retailer's turnaround effort continues to take hold despite falling wireless-phone sales. Analysts expected earnings of 72¢ a share
January Foreclosure Filings Surge 57%...
Foreclosure filings for January jump 57% to 233,001 from a year earlier and 8% from December. RealtyTrac CEO says on-month slowdown may signal homeowner aid is working. Nevada has the highest foreclosure rate, trailed by California.
MBIA Eliminates Dividend...
Standard & Poor's rewards bond insurer for raising $2.6 billion in capital by affirming the company's triple-A financial-strength rating while keeping its outlook "negative." MBIA also eliminates its dividend to preserve $174 million.
Home Depot Net Falls 27%, Issues Weak Outlook...
Home Depot (HD) posts 4Q earnings of $671 million, or 40¢ a share, due in part to higher operating costs. Revenue increases 1.5% to $17.66 billion, but fall 4.7%, excluding an extra week during the quarter. Th retailer forecasts fiscal-year earnings from continuing operations to slump 19%-24% on a total sales decline of 4%-5%.
HD was expected to earn 43 cents a share. The stock is down slightly in premarket trading.
HD was expected to earn 43 cents a share. The stock is down slightly in premarket trading.
Morning Bullets....
---Bond insurer MBIA Inc. (MBI) late Monday eliminated its quarterly dividend and said it would not do any new structured finance business for about six months as it struggles to keep enough capital to retain its treasured AAA credit rating. Shares are up 23.2% in Frankfurt.
---Merrill Lynch & Co. (MER) late Monday restated its cash flows for fiscal 2005 and 2006, and said the restatements were the result of errors that offset each other. Elsewhere, the bank said Tuesday it dismissed two private bankers in Asia due to "serious breaches of internal policy." Frankfurt shares are currently up 3.3%.
---International Business Machines Corp. (IBM) is set to launch the next generation of its mainframe computer line Tuesday, which analysts expect to provide a boost to the company's hardware and software sales, the Wall Street Journal reported. Shares are up 0.7% in Frankfurt.
---Home Depot Inc.'s (HD) fiscal fourth-quarter net income fell 27% to $671 million, or 40 cents a share, from $925 million, or 46 cents a share, a year earlier, due in part to higher operating costs. Stock is up 1.8% in Frankfurt.
---Elsewhere on the earnings calendar, investors will keenly watch reports from Macy's Inc. (M), Target Corp. (TGT) H.J. Heinz Co. (HNZ) and CBS Corp. (CBS).
---Merrill Lynch & Co. (MER) late Monday restated its cash flows for fiscal 2005 and 2006, and said the restatements were the result of errors that offset each other. Elsewhere, the bank said Tuesday it dismissed two private bankers in Asia due to "serious breaches of internal policy." Frankfurt shares are currently up 3.3%.
---International Business Machines Corp. (IBM) is set to launch the next generation of its mainframe computer line Tuesday, which analysts expect to provide a boost to the company's hardware and software sales, the Wall Street Journal reported. Shares are up 0.7% in Frankfurt.
---Home Depot Inc.'s (HD) fiscal fourth-quarter net income fell 27% to $671 million, or 40 cents a share, from $925 million, or 46 cents a share, a year earlier, due in part to higher operating costs. Stock is up 1.8% in Frankfurt.
---Elsewhere on the earnings calendar, investors will keenly watch reports from Macy's Inc. (M), Target Corp. (TGT) H.J. Heinz Co. (HNZ) and CBS Corp. (CBS).
Monday, February 25, 2008
Technical Watch: Zimmer Holdings (ZMH)
Zimmer Holdings is another one of our stocks that recently beat earnings estimates AND guided higher.
Now, take a look at the chart. The stock is setting up a nice cup and handle formation. The heavy resistance is in the $79 area. The stock closed up 1.94 today to $77.91. Another day like today might do it.
Now, take a look at the chart. The stock is setting up a nice cup and handle formation. The heavy resistance is in the $79 area. The stock closed up 1.94 today to $77.91. Another day like today might do it.
What to look for in the morning....
AutoZone (AZO), CBS Corp. (CBS), HJ Heinz (HNZ), Home Depot (HD), and Target (TGT) are all scheduled to announce their latest results tomorrow morning before the opening bell.
The January Producer Price Index kicks off tomorrow's economic readings (8:30 AM ET). The consensus is calling for an increase of 0.4% in the index.
Once trading is underway, market participants will be looking for the January New Home Sales report (10:00 AM ET). Existing home sales for January, which were announced this morning, posted a less severe downturn than economists expected.
Federal Reserve Governor Kohn speaks on U.S. economy and monetary policy in NC (12:15 PM ET).
The January Producer Price Index kicks off tomorrow's economic readings (8:30 AM ET). The consensus is calling for an increase of 0.4% in the index.
Once trading is underway, market participants will be looking for the January New Home Sales report (10:00 AM ET). Existing home sales for January, which were announced this morning, posted a less severe downturn than economists expected.
Federal Reserve Governor Kohn speaks on U.S. economy and monetary policy in NC (12:15 PM ET).
Nice Day for the Markets...
U.S. Markets:
Dow +189.20 (+1.53%)
Nasdaq +24.13 (+1.05%)
S&P 500 +18.69 (+1.38%)
News That Moved the Market:
Disaster Averted, For Now. The markets were boosted Monday on news that ratings agency S&P took MBIA (MBI, +19.7%) off CreditWatch and assigned it a negative outlook. In addition, S&P affirmed its AAA rating on Ambac (ABK, +15.9%), but added the company was still on CreditWatch. The announcement by no means qualifies as a signal that all is now well, but was more of a sign that S&P was giving the bond insurers more time to sure up funds and a downgrade is not as imminent as some fear. Downgrades can still occur, but as long as these companies keep their AAA rating, banks do not have to writedown the securities backed by these companies on their books.
Better Than Expected Housing Data. Existing home sales dropped 0.4% to an annual rate of 4.89 million, which was a 9-year low, but ahead of the 1.8% drop economists were expecting. Inventories of unsold homes increased to 10.3 months, still an enormous figure, but the better than expected data brought some hope that perhaps a bottom is nearing. Before the bell, Lowe's (LOW, +3.8%) reported a 33% decrease in net income and slashed its outlook, but the positive housing data allowed housing related companies to turn around and rally.
Getty Images Agrees to $2.1 Billion Buyout. Getty Images (GYI, +29.5%) agreed to be acquired by private-equity firm Hellman & Friedman LLC for $34/share. The purchase price represents a 55% premium from where Getty was trading when it announced it would be seeking strategic alternatives and could put itself up for sale on January 18th.
EA Makes Play For Take-Two. Take-Two Interactive (TTWO, +55.0%) rejected Electronic Arts' (EA, -5.2%) $26/share buyout bid, saying the bid undervalued the company. The $2 billion bid is not expected to be the last by EA, and the new price should come before April 29th, when Take-Two releases its newest installment of Grand Theft Auto.
Quick Tics:
--Visa could raise as much as $17 billion in its IPO.
--The Wall Street Journal reported Goldman Sach's (GS,-0.2%) could post its smallest quarterly profit in three years in March.
Tomorrow Notable Earnings:
CBS (CBS) Before Open
Home Depot Inc (HD) Before Open
Macy's, Inc. (M) Before Open
Target Corporation (TGT) Before Open
Office Depot Inc. (ODP) Before Open
DreamWorks Animation SKG, Inc. (DWA) After Close
Economic Events:
8:30 AM: PPI
10:00 AM: Consumer Confidence
Dow +189.20 (+1.53%)
Nasdaq +24.13 (+1.05%)
S&P 500 +18.69 (+1.38%)
News That Moved the Market:
Disaster Averted, For Now. The markets were boosted Monday on news that ratings agency S&P took MBIA (MBI, +19.7%) off CreditWatch and assigned it a negative outlook. In addition, S&P affirmed its AAA rating on Ambac (ABK, +15.9%), but added the company was still on CreditWatch. The announcement by no means qualifies as a signal that all is now well, but was more of a sign that S&P was giving the bond insurers more time to sure up funds and a downgrade is not as imminent as some fear. Downgrades can still occur, but as long as these companies keep their AAA rating, banks do not have to writedown the securities backed by these companies on their books.
Better Than Expected Housing Data. Existing home sales dropped 0.4% to an annual rate of 4.89 million, which was a 9-year low, but ahead of the 1.8% drop economists were expecting. Inventories of unsold homes increased to 10.3 months, still an enormous figure, but the better than expected data brought some hope that perhaps a bottom is nearing. Before the bell, Lowe's (LOW, +3.8%) reported a 33% decrease in net income and slashed its outlook, but the positive housing data allowed housing related companies to turn around and rally.
Getty Images Agrees to $2.1 Billion Buyout. Getty Images (GYI, +29.5%) agreed to be acquired by private-equity firm Hellman & Friedman LLC for $34/share. The purchase price represents a 55% premium from where Getty was trading when it announced it would be seeking strategic alternatives and could put itself up for sale on January 18th.
EA Makes Play For Take-Two. Take-Two Interactive (TTWO, +55.0%) rejected Electronic Arts' (EA, -5.2%) $26/share buyout bid, saying the bid undervalued the company. The $2 billion bid is not expected to be the last by EA, and the new price should come before April 29th, when Take-Two releases its newest installment of Grand Theft Auto.
Quick Tics:
--Visa could raise as much as $17 billion in its IPO.
--The Wall Street Journal reported Goldman Sach's (GS,-0.2%) could post its smallest quarterly profit in three years in March.
Tomorrow Notable Earnings:
CBS (CBS) Before Open
Home Depot Inc (HD) Before Open
Macy's, Inc. (M) Before Open
Target Corporation (TGT) Before Open
Office Depot Inc. (ODP) Before Open
DreamWorks Animation SKG, Inc. (DWA) After Close
Economic Events:
8:30 AM: PPI
10:00 AM: Consumer Confidence
S&P Affirms Ratings on MBIA and AMBAC...
Standard & Poor's is maintaining its top rating on the nation's two biggest bond insurers, MBIA and Ambac. MBIA shares rise 18% and Ambac gains 12%.
The market has rallied on this news.
The market has rallied on this news.
Ag Stocks on Fire ....Again....
Potash (POT) +6.85 to $163.90
Monsanto +4.64 to $121.31
Mosaic (MOS) +6.42 to $115.37
Monsanto +4.64 to $121.31
Mosaic (MOS) +6.42 to $115.37
Breakout Alert: Terex (TEX)
Check out the chart on Terex (TEX). The stock is breaking out of three month base today. It had resistance at $68, it is currently up 1.00 to $68.57.
Terex Corporation manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries.
Last week they beat earnings estimates and guided higher....
Terex Corporation manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries.
Last week they beat earnings estimates and guided higher....
Downgrades this morning...
Here is a list of Stocks Downgraded by Analysts this Morning....
Roper Inds (ROP) by Sterne Agee
Calgon Carbon (CCC) by Brean Murray
Sunstone Hotel (SHO) by Stifel Nicolaus
LaSalle Hotel (LHO) by Stifel Nicolaus
Hersha Hospitality Trust (HT) by Stifel Nicolaus
MEMC Elec (WFR) by JMP Securities
Syntel (SYNT) by Wachovia
Medicure (MCU) by Merriman Curhan Ford
Glimcher Realty (GRT) by RBC Capital Mkts
Aventine Renewable Energy (AVR) by Soleil
SPX Corp (SPW) by JP Morgan
Motorola (MOT) by Oppenheimer
Borg Warner (BWA) by Deutsche Securities
General Motors (GM) by Deutsche Securities
Smith Micro Software (SMSI) by JP Morgan
Peabody Energy (BTU) by UBS
Alpha Natural Resources (ANR) by UBS
James River Coal (JRCC) by UBS
New York Times (NYT) by Deutsche Securities
Roper Inds (ROP) by Sterne Agee
Calgon Carbon (CCC) by Brean Murray
Sunstone Hotel (SHO) by Stifel Nicolaus
LaSalle Hotel (LHO) by Stifel Nicolaus
Hersha Hospitality Trust (HT) by Stifel Nicolaus
MEMC Elec (WFR) by JMP Securities
Syntel (SYNT) by Wachovia
Medicure (MCU) by Merriman Curhan Ford
Glimcher Realty (GRT) by RBC Capital Mkts
Aventine Renewable Energy (AVR) by Soleil
SPX Corp (SPW) by JP Morgan
Motorola (MOT) by Oppenheimer
Borg Warner (BWA) by Deutsche Securities
General Motors (GM) by Deutsche Securities
Smith Micro Software (SMSI) by JP Morgan
Peabody Energy (BTU) by UBS
Alpha Natural Resources (ANR) by UBS
James River Coal (JRCC) by UBS
New York Times (NYT) by Deutsche Securities
Upgrades this morning...
Here's a list of Analyst Upgrades this Morning...
Take-Two (TTWO) by Sterne Agee
CoStar Group (CSGP) by Needham & Co
Penn Natl Gaming (PENN) by Brean Murray
Juniper Networks (JNPR) by RBC Capital Mkts
Semgroup Energy (SGLP) by Citigroup
Citizens Rep Bancorp (CRBC) by JP Morgan
Lloyds TSB plc (LYG) by Lehman Brothers
Mechel Steel (MTL) by Deutsche Securities
ESS Tech (ESST) by Jefferies & Co
YUM! Brands (YUM) by UBS
Hain Celestial (HAIN) by UBS
DTS (DTSI) by Deutsche Securities
Genentech (DNA) by Rodman & Renshaw
Take-Two (TTWO) by Sterne Agee
CoStar Group (CSGP) by Needham & Co
Penn Natl Gaming (PENN) by Brean Murray
Juniper Networks (JNPR) by RBC Capital Mkts
Semgroup Energy (SGLP) by Citigroup
Citizens Rep Bancorp (CRBC) by JP Morgan
Lloyds TSB plc (LYG) by Lehman Brothers
Mechel Steel (MTL) by Deutsche Securities
ESS Tech (ESST) by Jefferies & Co
YUM! Brands (YUM) by UBS
Hain Celestial (HAIN) by UBS
DTS (DTSI) by Deutsche Securities
Genentech (DNA) by Rodman & Renshaw
Apple Downgraded....
Shares of Apple Inc. are slipping in premarket trading Monday, with BMO Capital Markets lowering its price target onexpectations that valuation multiples will decline. Analyst Keith Bachman at BMO cut his price target to $140 from $160. He alsoraised his 2008 earnings estimate to $5.09 a share from $4.90 but cut his 2009 forecast to $6.26 a share from $6.30.
The mean estimates of analysts surveyed byThomson Financial are for 2008 earnings of $5.13 a share and 2009 earnings of$6.30 a share. The stock is down 40% since the end of 2007.
Bachman said that while his estimates stay "roughly the same," he loweredhis valuation multiple assumption given that the company's three growth drivers-- iPods, iPhones and CPUs -- has now turned to one -- CPUs.
The mean estimates of analysts surveyed byThomson Financial are for 2008 earnings of $5.13 a share and 2009 earnings of$6.30 a share. The stock is down 40% since the end of 2007.
Bachman said that while his estimates stay "roughly the same," he loweredhis valuation multiple assumption given that the company's three growth drivers-- iPods, iPhones and CPUs -- has now turned to one -- CPUs.
Boston Scientific Receives Defibrillator Approval...
Boston Scientific Corp. (BSX) Monday received approval from the Food and Drug Administration for its Confient implantablecardioverter defibrillator, its Livian cardiac resynchronization therapydefibrillator and its upgraded Latitude patient management system.
All three products are part of the company's cardiac rhythm managementbusiness. Both the Confient and Livian defibrillators allow physicians to managetheir patients wirelessly on the Latitude patient management system.
Shares of the Natick, Mass.-based medical devices company closed Friday at$12.31.
All three products are part of the company's cardiac rhythm managementbusiness. Both the Confient and Livian defibrillators allow physicians to managetheir patients wirelessly on the Latitude patient management system.
Shares of the Natick, Mass.-based medical devices company closed Friday at$12.31.
Shades of Tyco....
Countrywide Financial Corp. (CFC), reacting to negative publicity, canceled plans to host a posh ski trip for about 30 mortgage bankers at the Ritz-Carlton Bachelor Gulch ski resort in Avon, Colo., a spokesman said.
The New York Times first reported the cancellation of the trip last week. It was mentioned and criticized on CNBC on Friday.
The cancellation comes as Countrywide tries to damp down widespread criticism of its lending practices, which have led to a surge of foreclosures. The company's chief executive, Angelo Mozilo, is due to appear Thursday at a hearing of the U.S. House Oversight and Government Reform Committee, chaired by California Democrat Henry Waxman, who is raising questions about compensation packages for top executives of companies involved in the mortgage crisis.
The list price for a regular room on a weekday night at the Ritz in Avon starts at $750. But a Countrywide spokesman said the company would have paid "much less" than that.
The three-night event -- for smaller mortgage banks known as "correspondents" that sell home loans to Countrywide -- was to include two four-hour business meetings along with skiing and dinner at upscale restaurants, including the Spago restaurant, whose menu includes Kobe steak with wasabi potato puree for $105.
The New York Times first reported the cancellation of the trip last week. It was mentioned and criticized on CNBC on Friday.
The cancellation comes as Countrywide tries to damp down widespread criticism of its lending practices, which have led to a surge of foreclosures. The company's chief executive, Angelo Mozilo, is due to appear Thursday at a hearing of the U.S. House Oversight and Government Reform Committee, chaired by California Democrat Henry Waxman, who is raising questions about compensation packages for top executives of companies involved in the mortgage crisis.
The list price for a regular room on a weekday night at the Ritz in Avon starts at $750. But a Countrywide spokesman said the company would have paid "much less" than that.
The three-night event -- for smaller mortgage banks known as "correspondents" that sell home loans to Countrywide -- was to include two four-hour business meetings along with skiing and dinner at upscale restaurants, including the Spago restaurant, whose menu includes Kobe steak with wasabi potato puree for $105.
Angry Shareholders at Yahoo...
Ambac rescue at Hand...
Sources say Ambac Financial Group (ABK) is drawing nearer to sealing a $3B capital injection that will allow it to restructure, and save its critical AAA rating. The plan involves a $2.5B stock issue to existing shareholders at a discount, backed by bankers including Citigroup (C), UBS AG (UBS), Wachovia (WB) and Royal Bank of Scotland (RBS), who would commit to buying any shares unsold. Ambac will also sell $500M of debt. Banks are exposed to companies like Ambac and MBIA (MBI) who insure some of their riskier portfolio assets, such as CDOs. A sharp downgrade to the insurers could trigger a fire-sale of such assets.
Markets soared into positive territory during Friday's final minutes when news of the potential rescue broke.
Markets soared into positive territory during Friday's final minutes when news of the potential rescue broke.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• FirstEnergy (FE) Forecast to report Q4 earnings of $0.92 a share, according to analysts polled by Thomson Financial. This is an increase of 9.52% from $0.84 earned per share same time previous year.
• LDK Solar Co. (LDK). Expected to report Q4 earnings of $0.41 a share.
• Nordstrom Inc. (JWN). Expected to report Q4 earnings of $0.88 a share, a decrease of just 0.67% from $0.89 per share earned same time previous year.
• Orient-Express Hotels (OEH). Estimated to report Q4 earnings of $0.19 a share, down 15.45% from $0.22 earned per share same time previous year.
• Shanda Interactive Entertainment (SNDA). Estimated to post Q4 earnings of $0.45 a share.
• Sotheby's (BID). Likely to post Q2 earnings of $1.47 a share, up 35.83% from $1.08 earned same time previous year.
• FirstEnergy (FE) Forecast to report Q4 earnings of $0.92 a share, according to analysts polled by Thomson Financial. This is an increase of 9.52% from $0.84 earned per share same time previous year.
• LDK Solar Co. (LDK). Expected to report Q4 earnings of $0.41 a share.
• Nordstrom Inc. (JWN). Expected to report Q4 earnings of $0.88 a share, a decrease of just 0.67% from $0.89 per share earned same time previous year.
• Orient-Express Hotels (OEH). Estimated to report Q4 earnings of $0.19 a share, down 15.45% from $0.22 earned per share same time previous year.
• Shanda Interactive Entertainment (SNDA). Estimated to post Q4 earnings of $0.45 a share.
• Sotheby's (BID). Likely to post Q2 earnings of $1.47 a share, up 35.83% from $1.08 earned same time previous year.
US Stock Futures Higher This Morning...
U.S. stock futures on Monday extended the last session's rally on hopes of an imminent bailout of troubled bond insurer Ambac Financial Group Inc. (ABK), with Genentech Inc. (DNA) set to gain after the biotech won surprise backing for use of a cancer drug.
U.S. stocks ended higher on Friday, with hopes that several big banks will soon announce a bailout of bond insurer Ambac Financial driving gains. The Dow industrials ended up 96 points, the S&P 500 rose 10 points and the Nasdaq Composite rose 3 points.
That rally carried over to international markets, with the FTSE 100 up 1.7% in London and the Nikkei 225 jumping 3.1% in Tokyo.
U.S. stocks ended higher on Friday, with hopes that several big banks will soon announce a bailout of bond insurer Ambac Financial driving gains. The Dow industrials ended up 96 points, the S&P 500 rose 10 points and the Nasdaq Composite rose 3 points.
That rally carried over to international markets, with the FTSE 100 up 1.7% in London and the Nikkei 225 jumping 3.1% in Tokyo.
VISA Starts Setting Terms for IPO....
Visa May Raise $17B In IPO. Underwriters for the world's largest payment-card company set the terms of the company's planned initial public offering at 406 million class A shares with an estimated price range of $37 to $42 a share.
Still no date, though...I'm sure we'll be hearing more about this in the coming days...weeks...
Still no date, though...I'm sure we'll be hearing more about this in the coming days...weeks...
Lowe's Earnings Decline...
Lowe's Cos.' (LOW) fiscal fourth-quarter earnings slid to $408 million, or 28 cents a share, from $613 million, or 40 cents, a year earlier, hurt in part by declines in the housing market. A Thomson Financial survey of analysts, on average, projected earnings of 25 cents a share for the quarter. Analysts' estimates usually exclude one-time items.
The company expects first quarter total sales to rise about 2% on earnings of about 38 cents to 42 cents a share. Lowe's said the "next several quarters will be challenging on many fronts as industry sales are likely to remain soft."
The company expects first quarter total sales to rise about 2% on earnings of about 38 cents to 42 cents a share. Lowe's said the "next several quarters will be challenging on many fronts as industry sales are likely to remain soft."
YUM Brands Upgraded to Buy at UBS...
Yum Brands was upgraded to buy from neutral atUBS on expectations that the fast food operators organic growth, profit margins and return on invested capital (ROIC) will all improve significantly by 2010. UBS said it expects organic revenue will see growth of 7% by 2010, up from around 5% today.
Yum Brands owns the Pizza Hut, KFC and Taco Bell chains as well as Long JohnSilver's and A&W All American Food.
The broker maintained its 12-month price target of $43. The stock closedFriday at $34.85.
Yum Brands owns the Pizza Hut, KFC and Taco Bell chains as well as Long JohnSilver's and A&W All American Food.
The broker maintained its 12-month price target of $43. The stock closedFriday at $34.85.
Electronic Arts Offers $2B for Take-Two....
EA (ERTS) makes unsolicited $2 billion cash offer to buy Take Two Interactive (TTWO) publisher of the hit Grand Theft Auto videogame after that company's board last week rejected the proposal as insufficient. The $26-a-share offer is a 50% premium over Friday's closing price.
Word is Take-Two is not interested....
Word is Take-Two is not interested....
Sunday, February 24, 2008
What's Going on This Week....
Monday Feb 25
-- Lowe's Companies and Nordstrom report earnings, shedding more light on consumer spending. Lowe's is expected to post a 56% drop in fourth-quarter earnings per share, Nordstrom a slight drop.
-- Fed Governor Randall Kroszner will discuss risk management at the Global Association of Risk Professionals Annual Risk Convention in New York.
-- Fed Governor Frederic Mishkin discusses stabilizing inflation in Greenville, N.C.
Tuesday Feb 26
-- H.J. Heinz is expected to report earnings of 66 cents a share, flat from a year ago. Retailers Home Depot and Macy's are likely to post declines of 14% and 4%, respectively.
-- The January producer price index, offering the latest read on inflation, is expected to jump 0.4%, while the core index adds only 0.2%.
-- Analysts will ponder "The Future of Coal-Fired Power Generation: What Does the Market Think?" during a seminar presented by the New York Society of Security Analysts.
-- Fed Vice Chairman Donald Kohn will discuss the economy and monetary policy at the University of North Carolina.
-- Deputy U.S. Trade Representative John Veroneau will discuss "The Challenges of Global Sovereign Investment" at a meeting in New York sponsored by the U.S. Council for International Business.
Wednesday Feb 27
-- Fed Chairman Bernanke delivers his semi-annual testimony on monetary
policy before the House Financial Services Committee.
-- The horrid housing market is expected to produce a first-quarter loss of
44 cents a share for Toll Brothers, down from a 33-cent gain last year.
-- Analysts estimate durable goods sales fell by 3.5% in January, a big
change from December's 5.2% increase.
-- Keefe, Bruyette & Woods opens its two-day regional bank conference in
Boston.
-- Wachovia kicks off its three-day homebuilding and building-products
conference in Las Vegas.
Thursday Feb 28
-- The first read on the fourth quarter's gross domestic product is
reported, with analysts expecting a rise of only 0.7%.
-- Fed Chairman Bernanke makes his second presentation on monetary policy,
this time before the Senate Banking panel.
-- American International Group is expected to announce fourth-quarter
earnings after the market closes. It previously disclosed that outside
accountants were forcing a $5.2 billion write-down for the third quarter.
Investors wonder if there will be more.
-- Robbins & Myers will split its stock two-for-one.
-- Genoptix is expected to sell 4.2 million shares held by existing
shareholders through Lehman Brothers.
Friday Feb 29
-- January's personal income growth is expected to fall to 0.2%, from 0.5%
in December, while consumer spending is expected to remain at 0.2%.
-- Atlanta Fed President Dennis Lockhart discusses subprime mortgages.
-- Treasury auctions: M63
-- Lowe's Companies and Nordstrom report earnings, shedding more light on consumer spending. Lowe's is expected to post a 56% drop in fourth-quarter earnings per share, Nordstrom a slight drop.
-- Fed Governor Randall Kroszner will discuss risk management at the Global Association of Risk Professionals Annual Risk Convention in New York.
-- Fed Governor Frederic Mishkin discusses stabilizing inflation in Greenville, N.C.
Tuesday Feb 26
-- H.J. Heinz is expected to report earnings of 66 cents a share, flat from a year ago. Retailers Home Depot and Macy's are likely to post declines of 14% and 4%, respectively.
-- The January producer price index, offering the latest read on inflation, is expected to jump 0.4%, while the core index adds only 0.2%.
-- Analysts will ponder "The Future of Coal-Fired Power Generation: What Does the Market Think?" during a seminar presented by the New York Society of Security Analysts.
-- Fed Vice Chairman Donald Kohn will discuss the economy and monetary policy at the University of North Carolina.
-- Deputy U.S. Trade Representative John Veroneau will discuss "The Challenges of Global Sovereign Investment" at a meeting in New York sponsored by the U.S. Council for International Business.
Wednesday Feb 27
-- Fed Chairman Bernanke delivers his semi-annual testimony on monetary
policy before the House Financial Services Committee.
-- The horrid housing market is expected to produce a first-quarter loss of
44 cents a share for Toll Brothers, down from a 33-cent gain last year.
-- Analysts estimate durable goods sales fell by 3.5% in January, a big
change from December's 5.2% increase.
-- Keefe, Bruyette & Woods opens its two-day regional bank conference in
Boston.
-- Wachovia kicks off its three-day homebuilding and building-products
conference in Las Vegas.
Thursday Feb 28
-- The first read on the fourth quarter's gross domestic product is
reported, with analysts expecting a rise of only 0.7%.
-- Fed Chairman Bernanke makes his second presentation on monetary policy,
this time before the Senate Banking panel.
-- American International Group is expected to announce fourth-quarter
earnings after the market closes. It previously disclosed that outside
accountants were forcing a $5.2 billion write-down for the third quarter.
Investors wonder if there will be more.
-- Robbins & Myers will split its stock two-for-one.
-- Genoptix is expected to sell 4.2 million shares held by existing
shareholders through Lehman Brothers.
Friday Feb 29
-- January's personal income growth is expected to fall to 0.2%, from 0.5%
in December, while consumer spending is expected to remain at 0.2%.
-- Atlanta Fed President Dennis Lockhart discusses subprime mortgages.
-- Treasury auctions: M63
Companies That Are Raising Their Dividends...
Here is a list of companies who have announced that they will raise their dividend this quarter:
AMB Property Corp-AMB
Avista Corp-AVA
Blackrock Inc-BLK
Canadian Pac Railway-CP
Coca-Cola Co-KO
Equus Total Return-EQS
FBL Fin'l Group A-FFG
Foot Locker Inc-FL
Genuine Parts Co-GPC
Integrys Energy Group-TEG
Interface Inc A-IFSIA
Kimberly-Clark Corp-KMB
Nam Tai Electronic-NTE
Nordstrom Inc-JWN
Nu Skin Enterprises - NUS
Nucor Corp-NUE
PPL Corp-PPL
Pacific Cont'l Corp-PCBK
RenaissanceRE Hldg-RNR
Rogers Communications B-RCI
S.Y. Bancorp-SYBT
Sealed Air Corp-SEE
Sherwin-Williams-SHW
Tennant Co-TNC
Tim Hortons Inc-THI
UST Inc-UST
Westar Energy Inc-WR
World Wrestling Entertainment-WWE
AMB Property Corp-AMB
Avista Corp-AVA
Blackrock Inc-BLK
Canadian Pac Railway-CP
Coca-Cola Co-KO
Equus Total Return-EQS
FBL Fin'l Group A-FFG
Foot Locker Inc-FL
Genuine Parts Co-GPC
Integrys Energy Group-TEG
Interface Inc A-IFSIA
Kimberly-Clark Corp-KMB
Nam Tai Electronic-NTE
Nordstrom Inc-JWN
Nu Skin Enterprises - NUS
Nucor Corp-NUE
PPL Corp-PPL
Pacific Cont'l Corp-PCBK
RenaissanceRE Hldg-RNR
Rogers Communications B-RCI
S.Y. Bancorp-SYBT
Sealed Air Corp-SEE
Sherwin-Williams-SHW
Tennant Co-TNC
Tim Hortons Inc-THI
UST Inc-UST
Westar Energy Inc-WR
World Wrestling Entertainment-WWE
Barron's Says Disney is Undervalued....
Barron's says Disney (DIS) stock as cheap as it's been in the last 20 years. While not immune to a U.S. economic downturn, investors and analysts have overcompensated for the company's cyclical exposure: Only 22% of Disney's revenue is from reception-vulnerable advertising. Theme parks, which contribute another 30%, continue to see solid booking trends, with an 89% occupancy rate last quarter.
Trading at 14.4 times next years' earnings, shares are at their lowest point in 18 years. The multiple is about equal with that of the S&P 500 average, which sounds ok until you realize Disney normally trades at an average 30% premium. Even better, CEO Robert Iger has succeeded in building a Disney "more diversified, better- managed, less cyclical and more disciplined in its brand development and capital-allocation strategies" than the company Walt built. Iger's 'franchise'-centric philosophy has executives focused on developing brand franchises, such as the exceptionally successful Hannah Montana, whose secondary products become revenue producers for other Disney units.
Morgan Stanley's Benjamin Swinburne gives the company a sum-of-parts value of $43/share ($32.57), which he equates to a $36 stock price after applying a 15% conglomerate discount.
Trading at 14.4 times next years' earnings, shares are at their lowest point in 18 years. The multiple is about equal with that of the S&P 500 average, which sounds ok until you realize Disney normally trades at an average 30% premium. Even better, CEO Robert Iger has succeeded in building a Disney "more diversified, better- managed, less cyclical and more disciplined in its brand development and capital-allocation strategies" than the company Walt built. Iger's 'franchise'-centric philosophy has executives focused on developing brand franchises, such as the exceptionally successful Hannah Montana, whose secondary products become revenue producers for other Disney units.
Morgan Stanley's Benjamin Swinburne gives the company a sum-of-parts value of $43/share ($32.57), which he equates to a $36 stock price after applying a 15% conglomerate discount.
Saturday, February 23, 2008
Friday's Trading Summary...
U.S. Markets:
Dow +96.72 (+0.79%)
Nasdaq +3.57 (+0.16%)
S&P 500 +10.58 (+0.79%)
News That Moved the Market:
Scary Session Finishes With Happy Ending. With little news after Thursday's disastrous Philly Fed figures, the markets drifted lower throughout the morning before finding support in the afternoon. In the last minutes of the session, CNBC reporter Charles Gasparino announced that a source had told him a bailout plan for troubled bond insurer Ambac (ABK, +16.0%) was close to being completed and could be announced early next week. Though the details were sketchy, MarketWatch added the plan may include eight banks that are major counterparties to Ambac. The list includes Citigroup (C, +0.3%), Barclays (BCS, +3.4%), UBS (UBS, +3.0%), and Wachovia (WB, +2.9%), among others. The markets shot up on the news, with the S&P gaining 2% after the announcement. The deal is not complete and could fall apart, but if the deal is announced, investors would feel as if a major disaster would have been averted and could start putting money back in financials.
Weak Outlook At Intuit. Intuit Inc. (INTU, -9.2%), maker of small business software such as QuickBooks and TurboTax, announced fiscal second quarter results which were in-line with analysts' forecasts, however, the company lowered its fiscal third-quarter EPS estimates. There were some interesting comments make by CEO Brad Smith: "Small businesses are out there competing in this market and the small business customers we serve are very much like consumers… A lot of small businesses today will operate their business with lines of credit, credit cards, home equity loans, and we know the condition there."
Quick Tics:
Fannie Mae (FNM, -0.9%) and Freddie Mac (FRE, -4.1%) were both downgraded at Merrill Lynch citing bad business conditions.
Next week's important economic figures include PPI (Tuesday), Durable Goods (Wednesday), Preliminary GDP (Thursday), and Personal Income and Outlays (Friday).
Monday's Notable Earnings:
Nordstrom (JWN) After CloseLowe's Companies (LOW) Time Not Supplied
Economic Events:
10:00 AM: Existing Home Sales
Dow +96.72 (+0.79%)
Nasdaq +3.57 (+0.16%)
S&P 500 +10.58 (+0.79%)
News That Moved the Market:
Scary Session Finishes With Happy Ending. With little news after Thursday's disastrous Philly Fed figures, the markets drifted lower throughout the morning before finding support in the afternoon. In the last minutes of the session, CNBC reporter Charles Gasparino announced that a source had told him a bailout plan for troubled bond insurer Ambac (ABK, +16.0%) was close to being completed and could be announced early next week. Though the details were sketchy, MarketWatch added the plan may include eight banks that are major counterparties to Ambac. The list includes Citigroup (C, +0.3%), Barclays (BCS, +3.4%), UBS (UBS, +3.0%), and Wachovia (WB, +2.9%), among others. The markets shot up on the news, with the S&P gaining 2% after the announcement. The deal is not complete and could fall apart, but if the deal is announced, investors would feel as if a major disaster would have been averted and could start putting money back in financials.
Weak Outlook At Intuit. Intuit Inc. (INTU, -9.2%), maker of small business software such as QuickBooks and TurboTax, announced fiscal second quarter results which were in-line with analysts' forecasts, however, the company lowered its fiscal third-quarter EPS estimates. There were some interesting comments make by CEO Brad Smith: "Small businesses are out there competing in this market and the small business customers we serve are very much like consumers… A lot of small businesses today will operate their business with lines of credit, credit cards, home equity loans, and we know the condition there."
Quick Tics:
Fannie Mae (FNM, -0.9%) and Freddie Mac (FRE, -4.1%) were both downgraded at Merrill Lynch citing bad business conditions.
Next week's important economic figures include PPI (Tuesday), Durable Goods (Wednesday), Preliminary GDP (Thursday), and Personal Income and Outlays (Friday).
Monday's Notable Earnings:
Nordstrom (JWN) After CloseLowe's Companies (LOW) Time Not Supplied
Economic Events:
10:00 AM: Existing Home Sales
Stocks to Watch on Monday....
Fashion specialty retailer Nordstrom Inc. (JWN) is expected to report fourth-quarter earnings of 90 cents a share, according to analysts polled by FactSet Research.
Lowe's Companies (LOW), the second-largest home improvement retailer in the world, is projected to report fourth-quarter earnings of 25 cents a share.
Sotheby's Holdings, Inc (BID) is forecast to post earnings of $1.49 a share in the fourth quarter.
LDK Solar Co. (LDK), manufacturer of multicrystalline solar wafers, is expected to report fourth-quarter earnings of 41 cents a share.
FirstEnergy (FE), a diversified energy company, is forecast to report earnings of 94 cents a share in the fourth quarter.
Shanda Interactive Entertainment (SNDA), a China-based interactive entertainment media company, is estimated to post earnings of 45 cents a share in the fourth quarter.
Tesco (TESO), manufacturer of technology-based solutions for the upstream energy industry, is likely to report earnings of 22 cents a share in the fourth quarter.
After Friday's closing bell, Genentech Inc. (DNA) said the U.S. Food and Drug Administration granted an accelerated approval for Avastin, in combination with paclitaxel chemotherapy, for the treatment of patients who have not received chemotherapy for their metastatic breast cancer. Accelerated approval means that the FDA must still review data on the drug before granting full market approval. The approval is based on a Phase III study that showed that Avastin in combination with paclitaxel chemotherapy resulted in a 52% reduction in the risk of disease progression or death. Avastin is already FDA-approved for colorectal cancer and non-small-cell lung cancer.
Lowe's Companies (LOW), the second-largest home improvement retailer in the world, is projected to report fourth-quarter earnings of 25 cents a share.
Sotheby's Holdings, Inc (BID) is forecast to post earnings of $1.49 a share in the fourth quarter.
LDK Solar Co. (LDK), manufacturer of multicrystalline solar wafers, is expected to report fourth-quarter earnings of 41 cents a share.
FirstEnergy (FE), a diversified energy company, is forecast to report earnings of 94 cents a share in the fourth quarter.
Shanda Interactive Entertainment (SNDA), a China-based interactive entertainment media company, is estimated to post earnings of 45 cents a share in the fourth quarter.
Tesco (TESO), manufacturer of technology-based solutions for the upstream energy industry, is likely to report earnings of 22 cents a share in the fourth quarter.
After Friday's closing bell, Genentech Inc. (DNA) said the U.S. Food and Drug Administration granted an accelerated approval for Avastin, in combination with paclitaxel chemotherapy, for the treatment of patients who have not received chemotherapy for their metastatic breast cancer. Accelerated approval means that the FDA must still review data on the drug before granting full market approval. The approval is based on a Phase III study that showed that Avastin in combination with paclitaxel chemotherapy resulted in a 52% reduction in the risk of disease progression or death. Avastin is already FDA-approved for colorectal cancer and non-small-cell lung cancer.
How to Accept an Oscar....
Whether you're accepting an Oscar or any other award, preparation is the key to being quotable. Toastmasters International President Chris Ford says, "Every acceptance speech should demonstrate gratitude, recognition and sincerity -- and good delivery." He offers the following tips for adding rhythm and pacing to your award acceptance speech:
-- Write your speech as a script, and memorize it!
-- Pause, smile and count to three before saying anything. ("One one-thousand, two one-thousand, three one-thousand. Pause. Begin.)
-- Begin by addressing the audience. It buys you time and calms your nerves. Remember, the audience is rooting for you.
-- Practice, practice, practice! Rehearse with a timer and allow time for the unexpected.
-- Control filler words (ums and ahs; "you knows"). To do so, see above points: Practice, pause and breathe.
-- Keep names to a minimum and get them right!
-- Include a brief but touching anecdote or little-known fact regarding the role or job you are recognized for.
-- Mainly, your acceptance speech should represent you -- as a professional and as a person.
-- Concentrate on your message. You have important thoughts to convey, so focus on your speech, not on the audience.
-- Make your last line expendable, in case you are cut off.
-- Write your speech as a script, and memorize it!
-- Pause, smile and count to three before saying anything. ("One one-thousand, two one-thousand, three one-thousand. Pause. Begin.)
-- Begin by addressing the audience. It buys you time and calms your nerves. Remember, the audience is rooting for you.
-- Practice, practice, practice! Rehearse with a timer and allow time for the unexpected.
-- Control filler words (ums and ahs; "you knows"). To do so, see above points: Practice, pause and breathe.
-- Keep names to a minimum and get them right!
-- Include a brief but touching anecdote or little-known fact regarding the role or job you are recognized for.
-- Mainly, your acceptance speech should represent you -- as a professional and as a person.
-- Concentrate on your message. You have important thoughts to convey, so focus on your speech, not on the audience.
-- Make your last line expendable, in case you are cut off.
Friday, February 22, 2008
Reason For Late Move....
Ambac Bailout May Be Announced Next Week
New York State Insurance Department's plan to bail out troubled bond insurer Ambac Financial could be announced Monday or Tuesday, reports CNBC's Charlie Gasparino, citing conversations with "bankers working on the deal."
New York State Insurance Department's plan to bail out troubled bond insurer Ambac Financial could be announced Monday or Tuesday, reports CNBC's Charlie Gasparino, citing conversations with "bankers working on the deal."
FDA Approves Genentech's Avastin Drug...
Genentech, Inc. (NYSE:DNA) today announced that the U.S. Food and Drug Administration (FDA) granted accelerated approval for Avastin(R) (bevacizumab), in combination with paclitaxel chemotherapy, for the treatment of patients who have not received chemotherapy for their metastatic HER2-negative breast cancer.
This is huge surprise for Genentech...
This is huge surprise for Genentech...
Stocks Turn Green....
The Dow Jones Industrial Average recovers from a triple-digit decline to trade positive on news of a potential bailout of troubled bond insurer Ambac. Stocks had been lower most of the day amid nervousness about the economy and downgrades of federal home lenders Fannie Mae and Freddie Mac.
Today's Downgrades....
Agnico-Eagle (AEM) by Salman to Hold from Buy
Barrick Gold (ABX) by UBS to Neutral from Buy
Best Buy (BBY) by Morgan Stanley to Underweight from Equal Weight
ChoicePoint (CPS) by GARP to Neutral from Buy
Fannie Mae (FNM) by Merrill Lynch to Sell from Neutral
Freddie Mac (FRE) by Merrill Lynch to Sell from Neutral
Freeport-McMoran (FCX) by Desjardins to Hold from Buy
Gilead (GILD) by Sanford Berstein to Mkt Perform from Outperform
Goldcorp (GG) by R James to Mkt Perform from Outperform
Goldcorp (GG) by Salman to Hold from Buy
Kinross Gold (KGC) by Genuity to Hold from Buy
Kinross Gold (KGC) by UBS to Neutral from Buy
Nicor Inc (GAS) by Baird to Neutral from Outperform
Barrick Gold (ABX) by UBS to Neutral from Buy
Best Buy (BBY) by Morgan Stanley to Underweight from Equal Weight
ChoicePoint (CPS) by GARP to Neutral from Buy
Fannie Mae (FNM) by Merrill Lynch to Sell from Neutral
Freddie Mac (FRE) by Merrill Lynch to Sell from Neutral
Freeport-McMoran (FCX) by Desjardins to Hold from Buy
Gilead (GILD) by Sanford Berstein to Mkt Perform from Outperform
Goldcorp (GG) by R James to Mkt Perform from Outperform
Goldcorp (GG) by Salman to Hold from Buy
Kinross Gold (KGC) by Genuity to Hold from Buy
Kinross Gold (KGC) by UBS to Neutral from Buy
Nicor Inc (GAS) by Baird to Neutral from Outperform
Today's Upgrades...
American Equity (AEL) by KeyBanc to Buy from Hold
Bristow Grp (BRS) by C. Suisse to Neutral from Underperform
DCP Midstream (DPM) by Wachovia to Outperform from Mkt Perform
DirecTV (DTV) by Cowen & Co to Outperform from Neutral
Discover Fnl Svcs (DFS) by Morgan Stanley to Overweight from Underweight
Dynavax Tech (DVAX) by Oppenheimer to Outperform from Perform
Health Management (HMA) by Raymond James to Mkt Perform from Underperform
Hillenbrand (HB) by Hilliard Lyons to Buy from Neutral
ImClone Sys (IMCL) by Cowen & Co. to Outperform from Neutral
Switch & Data (SDXC) by Raymond James to Strong Buy from Outperform
Williams Cos (WMB) by RBC to Outperform from Sector Perform
Earnings Reports Due on Monday....
American Tower Corp. (AMT) 4Q .08 6:00AM
Atlas Pipeline Partners L.P. (APL) 4Q .62 AMC
China TechFaith Wireless Commun Tech (CNTF) 4Q .04 AMC
Donaldson Co. Inc. (DCI) 2Q .42 AMC
EXCO Resources Inc. (XCO) 4Q .06 AMC
FirstEnergy Corp. (FE) 4Q .94
Grant Prideco Inc. (GRP) 4Q 1.09
Greatbatch Inc. (GB) 4Q .22 4:00PM
GulfMark Offshore Inc. (GLF) 4Q 1.13 6:00AM
Henry Schein Inc. (HSIC) 4Q .82 BMO
Hilb Rogal & Hobbs Co. (HRH) 4Q .55 AMC
Human Genome Sciences Inc. (HGSI) 4Q (.54) AMC
Keryx BioPharms Inc. (KERX) 4Q (.44)
LDK Solar Co. Ltd. (LDK) 4Q .41 AMC
Lowe's Cos. (LOW) 4Q .25
Nationwide Health Ppties Inc. (NHP) 4Q .33 AMC
Nordstrom Inc. (JWN) 4Q .90
ONEOK Inc. (OKE) 4Q .94 AMC
ONEOK Partners L.P. (OKS) 4Q 1.20 AMC
Orient Express Hotels Ltd. (OEH) 4Q .20 AMC
Perfect World Co. Ltd. (PWRD) 4Q .28 BMO
Shanda Interactive Entertain Ltd. (SNDA) 4Q .45 AMC
Sirtris Pharms Inc. (SIRT) 4Q (.34) AMC
Tesco Corp. (TESO) 4Q .22 BMO
TNS Inc. (TNS) 4Q .21 AMC
USEC Inc. (USU) 4Q .09 AMC
Verenium Corp. (VRNM) 4Q (.20) AMC
Zebra Tech Corp. (ZBRA) 4Q .43 BMO
Atlas Pipeline Partners L.P. (APL) 4Q .62 AMC
China TechFaith Wireless Commun Tech (CNTF) 4Q .04 AMC
Donaldson Co. Inc. (DCI) 2Q .42 AMC
EXCO Resources Inc. (XCO) 4Q .06 AMC
FirstEnergy Corp. (FE) 4Q .94
Grant Prideco Inc. (GRP) 4Q 1.09
Greatbatch Inc. (GB) 4Q .22 4:00PM
GulfMark Offshore Inc. (GLF) 4Q 1.13 6:00AM
Henry Schein Inc. (HSIC) 4Q .82 BMO
Hilb Rogal & Hobbs Co. (HRH) 4Q .55 AMC
Human Genome Sciences Inc. (HGSI) 4Q (.54) AMC
Keryx BioPharms Inc. (KERX) 4Q (.44)
LDK Solar Co. Ltd. (LDK) 4Q .41 AMC
Lowe's Cos. (LOW) 4Q .25
Nationwide Health Ppties Inc. (NHP) 4Q .33 AMC
Nordstrom Inc. (JWN) 4Q .90
ONEOK Inc. (OKE) 4Q .94 AMC
ONEOK Partners L.P. (OKS) 4Q 1.20 AMC
Orient Express Hotels Ltd. (OEH) 4Q .20 AMC
Perfect World Co. Ltd. (PWRD) 4Q .28 BMO
Shanda Interactive Entertain Ltd. (SNDA) 4Q .45 AMC
Sirtris Pharms Inc. (SIRT) 4Q (.34) AMC
Tesco Corp. (TESO) 4Q .22 BMO
TNS Inc. (TNS) 4Q .21 AMC
USEC Inc. (USU) 4Q .09 AMC
Verenium Corp. (VRNM) 4Q (.20) AMC
Zebra Tech Corp. (ZBRA) 4Q .43 BMO
S&P Slashes GMAC Ratings...
Standard & Poor's cut its rating on GMAC three notches deeper into junk territory and warns the finance company may not be able to remain a better credit risk than its former parent, GM. Ratings agency says further downgrades are possible.
Short List of Stocks to BUY.....
Reviewing earnings reports since January 1. Here is a list of companies that have Beat Earnings Expectations AND have Raised Guidance for the future.
These are stocks you want to BUY if given an opportunity on a pullback...
Potash (POT)
Terex (TEX)
Intuitive Surgical (ISRG)
Hewlett-Packard (HPQ)
Medco Health (MHS)
Buffalo Wild Wings (BWLD)
Gamestop (GME)
Mosanto (MON)
JC Penney (JCP)
Zimmer Holdings (ZMH)
Sohu (SOHU)
Dolby Labs (DLB)
Research in Motion (RIMM)
Express Scripts (ESRX)
Boeing (BA)
Chattem (CHTT)
Corning (GLW)
IBM (IBM)
These are stocks you want to BUY if given an opportunity on a pullback...
Potash (POT)
Terex (TEX)
Intuitive Surgical (ISRG)
Hewlett-Packard (HPQ)
Medco Health (MHS)
Buffalo Wild Wings (BWLD)
Gamestop (GME)
Mosanto (MON)
JC Penney (JCP)
Zimmer Holdings (ZMH)
Sohu (SOHU)
Dolby Labs (DLB)
Research in Motion (RIMM)
Express Scripts (ESRX)
Boeing (BA)
Chattem (CHTT)
Corning (GLW)
IBM (IBM)
Latest Apple Patent Filing....
A new Apple (AAPL) patent describes a large touch-based system designed to be used with both hands simultaneously. Perhaps a competitor to Microsoft's delayed Surface?
ImClone Gets Upgraded...
Cowen and Co. upgraded biotech company ImClone Systems (IMCL) to outperform from neutral, saying that based on conversations with physician consultants, it believes Erbitux's prospects for gaining significant market share in the treatment of lung cancer are quite good.
Medical Device Makers Celebrate Victory...
Since Wednesday's Supreme Court ruling protecting medical device maker Medtronic (MDT) from personal injury lawsuits, lawyers and judges have been busily reexamining similar cases against companies like Johnson & Johnson (JNJ), Boston Scientific (BSX) and St. Jude Medical (STJ) to decide whether the suits should be closed down.
Microsoft Opens Source Code...
In the hopes of encouraging programmers to build add-ons to its products, Microsoft (MSFT) announced broad steps to open up its source code. Microsoft hopes the move will give it leverage against rival online software suites that make it easy to build plug-ins that enhance usability and function. Developers and regulators were pleased by the move, although some were skeptical of Microsoft's commitment to interoperability.
Jeff Bezos Selling Shares of Amazon....
Shares in Amazon.com Inc. (AMZN) fell 5.1% Thursday after the Internet retailer revealed that founder and Chief Executive Jeff Bezos sold more than $135 million worth of shares, his first insider sale in more than three years.
Nothing wrong with this....I guess he's learned from the past.
Nothing wrong with this....I guess he's learned from the past.
Chesapeake Energy Beats Estimates...
Chesapeake Energy Corp. (CHK, $44.18), the largest independent U.S. natural gas producer, reported fourth-quarter net income of $303 million, falling from $471 million a year ago. After paying preferred stock dividends and including losses on the conversion of preferred stock, earnings fell to 33 cents a share from 96 cents a share. Excluding one-time items, the company earned $466 million, or 93 cents a share, from ongoing operations. Revenue rose 12% to $2.09 billion.
Analysts surveyed had predicted the company would earn 82 cents a share on $1.96 billion in revenue.
This has been a hot stock lately with the latest move in Natural Gas prices.
Analysts surveyed had predicted the company would earn 82 cents a share on $1.96 billion in revenue.
This has been a hot stock lately with the latest move in Natural Gas prices.
Intuit Earnings Miss Estimates..
Intuit Inc. (INTU). The Mountain View, CA.-based provider of business and financial management software said late Thursday its second-quarter net profit dipped to $115.2 million, or $0.34 a share, from $145.4 million, or $0.40 a share, in the year-ago period. Total net revenue rose to $834.9 million from $750.6 million in the previous year period.
The company was expected to earn 36 cents a share.
Have you noticed how much they jacked up the price on Turbotax this year???
The company was expected to earn 36 cents a share.
Have you noticed how much they jacked up the price on Turbotax this year???
Fannie and Freddie Downgraded to Sell...
Merrill Lynch downgraded government-sponsored agencies Fannie Mae (FNM) and Freddie Mac (FRE) to sell from neutral Friday, saying that despite recent selling pressure, the share prices don't fully reflect "the severity or duration of the financial headwinds facing the companies." Further deterioration in financial market conditions and worsening credit performance will undermine fundamentals and the market’s assessment of Fannie and Freddie's respective financial position, Merrill Lynch analysts wrote in a note to clients.
Express Scripts Beats Estimates...
Express Scripts Inc. (ESRX). The Maryland Heights, Mo.-based provider of pharmacy benefit management services late Thursday said fourth-quarter adjusted earnings rose to $174.2 million, or 68 cents a share, compared with $139.9 million, or 51 cents a share, a year earlier. The company was expected to earn 64 cents a share.
Revenue for the period ended Dec. 31 rose to $4.69 billion from last year's $4.5 billion. For 2008, the company expects earnings from continuing operators of $2.92 to $3 a share.
The stock is trading up 1 to $66 premarket. This has been one of the top performing groups out there over the past thee years. Medco Health and CVS Caremark are the other two top players.
Revenue for the period ended Dec. 31 rose to $4.69 billion from last year's $4.5 billion. For 2008, the company expects earnings from continuing operators of $2.92 to $3 a share.
The stock is trading up 1 to $66 premarket. This has been one of the top performing groups out there over the past thee years. Medco Health and CVS Caremark are the other two top players.
Thursday, February 21, 2008
Thursday's Summary....
U.S. Markets
Dow -142.96 (-1.15%)
Nasdaq -27.32 (-1.17%)
S&P 500 -17.50 (-1.29%)
News That Moved the Market
Markets Drop On Philly Fed. Sellers dominated the market Thursday, with all 10 sectors finishing in negative territory. The bears took control after the Philadelphia Fed Manufacturing Survey came in at -24, showing continued contraction in the region's manufacturing. The reading was well below the -10 analysts expected, fueling speculation that we may not be able to avert a recession. The Philly Fed Survey has recently been a strong barometer of the country's manufacturing activity. With little news expected Friday, look for this number to stay with investors and traders through the start of tomorrow's' session.
Microsoft Opens Up. Microsoft (MSFT, -0.4% ) announced it would enhance interoperability by increasing the openness of its products. The move should make it easier for outside programmers to create applications that work with Microsoft's products, mainly Vista, and ease tensions with the EU anti-trust regulators.
Gold Shines. Gold futures hit an all-time high of $958.40/ouce, before settling up $11.40 to $949.20. After yesterday's higher than expected CPI reading and further weakness in the U.S. dollar, gold was bid up by investors and traders. "This type of inflation environment is one in which commodities thrive in -- at least until growth rates start to falter," said Edward Meir, an analyst at MF Global.
Research in Motion (RIMM, +9.0%) traded higher after increasing its forecast for subscriber growth...
Crude Oil fell $0.32 to $97.91/barrel after higher than expected inventories…
Cisco (CSCO, -0.0%) was upgraded to a Buy from Neutral at Citigroup.
Dow -142.96 (-1.15%)
Nasdaq -27.32 (-1.17%)
S&P 500 -17.50 (-1.29%)
News That Moved the Market
Markets Drop On Philly Fed. Sellers dominated the market Thursday, with all 10 sectors finishing in negative territory. The bears took control after the Philadelphia Fed Manufacturing Survey came in at -24, showing continued contraction in the region's manufacturing. The reading was well below the -10 analysts expected, fueling speculation that we may not be able to avert a recession. The Philly Fed Survey has recently been a strong barometer of the country's manufacturing activity. With little news expected Friday, look for this number to stay with investors and traders through the start of tomorrow's' session.
Microsoft Opens Up. Microsoft (MSFT, -0.4% ) announced it would enhance interoperability by increasing the openness of its products. The move should make it easier for outside programmers to create applications that work with Microsoft's products, mainly Vista, and ease tensions with the EU anti-trust regulators.
Gold Shines. Gold futures hit an all-time high of $958.40/ouce, before settling up $11.40 to $949.20. After yesterday's higher than expected CPI reading and further weakness in the U.S. dollar, gold was bid up by investors and traders. "This type of inflation environment is one in which commodities thrive in -- at least until growth rates start to falter," said Edward Meir, an analyst at MF Global.
Research in Motion (RIMM, +9.0%) traded higher after increasing its forecast for subscriber growth...
Crude Oil fell $0.32 to $97.91/barrel after higher than expected inventories…
Cisco (CSCO, -0.0%) was upgraded to a Buy from Neutral at Citigroup.
Fed Forecasts Lower US Growth, Higher Inflation...
A new forecast by the Federal Reserve suggests the U.S. can expect both slower growth and higher inflation this year. The central bank cut its prediction for growth to between 1.3% and 2% this year, half a point lower than predicted in October.
The Fed raised the forecast for core inflation by 0.3 per cent, to between 2% and 2.2%.
The Fed raised the forecast for core inflation by 0.3 per cent, to between 2% and 2.2%.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Chesapeake Energy (CHK). Projected to report Q4 earnings of $0.81 a share, according to analysts polled by Thomson Financial. This is a decline of 10.11% from $0.90 earned per share same time the previous year.
• Chemed (CHE). Estimated to post Q4 earnings of $0.88 a share, up 20.14% from $0.73 earned per share same time last year.
• DTE Energy (DTE). Forecast to report earnings of $0.78 a share, which is largely unchanged from $0.77 earned per share same time the year previous.
• Eaton Vance (EV). Projected to report q1 earnings of $0.49 a share, up 88.85% from $0.26 earned per share same time last year.
• Emcor (EME). Likely report Q4 earnings of $0.66 a share, up 64.25% from $0.40 earned per share same time the previous year.
• Esterline Technologies (ESL). Forecast to report Q1 earnings of $0.59 a share.
• Express Scripts (ESRX). Expected to post Q4 earnings of $0.64 a share, an increase of over 26% from $0.51 earned per share same time the previous year.
• Intuit (INTU). Estimated to post Q2 earnings of $0.36 a share, down 19.33% from $0.45 earned same time the previous year.
• JC Penney (JCP). Forecast to post Q4 earnings of $1.77 a share, a decline of 11.45% from $2.00 earned per share same time the previous year.
• MGM Mirage (MGM). Projected to post Q4 earnings of $0.56 a share, up 5.47% from 40.53 per share earned same time the previous year.
• Odyssey Re Holdings (ORH). Expected to report Q4 earnings of $0.92 a share against $0.92 earned per share same time the previous year.
• OSI Pharmaceuticals (OSIP). Likely to report a Q4 profit of $0.29 a share, against a loss of $0.01 per share same time last year.
• Roper Industries (ROP). Expected to post Q4 earnings of $0.75 a share, an increase of 16.72% from $0.64 earned same time previous year.
• Safeway (SWY). Expected to report Q4 profit of $0.68 a share, which is a rise of 11.47% from $0.61 earned per share same time the previous year.
• Chesapeake Energy (CHK). Projected to report Q4 earnings of $0.81 a share, according to analysts polled by Thomson Financial. This is a decline of 10.11% from $0.90 earned per share same time the previous year.
• Chemed (CHE). Estimated to post Q4 earnings of $0.88 a share, up 20.14% from $0.73 earned per share same time last year.
• DTE Energy (DTE). Forecast to report earnings of $0.78 a share, which is largely unchanged from $0.77 earned per share same time the year previous.
• Eaton Vance (EV). Projected to report q1 earnings of $0.49 a share, up 88.85% from $0.26 earned per share same time last year.
• Emcor (EME). Likely report Q4 earnings of $0.66 a share, up 64.25% from $0.40 earned per share same time the previous year.
• Esterline Technologies (ESL). Forecast to report Q1 earnings of $0.59 a share.
• Express Scripts (ESRX). Expected to post Q4 earnings of $0.64 a share, an increase of over 26% from $0.51 earned per share same time the previous year.
• Intuit (INTU). Estimated to post Q2 earnings of $0.36 a share, down 19.33% from $0.45 earned same time the previous year.
• JC Penney (JCP). Forecast to post Q4 earnings of $1.77 a share, a decline of 11.45% from $2.00 earned per share same time the previous year.
• MGM Mirage (MGM). Projected to post Q4 earnings of $0.56 a share, up 5.47% from 40.53 per share earned same time the previous year.
• Odyssey Re Holdings (ORH). Expected to report Q4 earnings of $0.92 a share against $0.92 earned per share same time the previous year.
• OSI Pharmaceuticals (OSIP). Likely to report a Q4 profit of $0.29 a share, against a loss of $0.01 per share same time last year.
• Roper Industries (ROP). Expected to post Q4 earnings of $0.75 a share, an increase of 16.72% from $0.64 earned same time previous year.
• Safeway (SWY). Expected to report Q4 profit of $0.68 a share, which is a rise of 11.47% from $0.61 earned per share same time the previous year.
Terex Beats and Guides Higher...
Terex Corp. TEX) late Wednesday reported fourth-quarter net income of $174 million, or $1.67 per share, up from $100.9 million, or 97 cents a share, last year.The Westport, Conn.-based diversified manufacturer said revenue in the three months ended Dec. 31 rose to $2.59 billion from $2.03 billion.The mean estimate of analysts polled by Thomson Financial was for a per-share profit of $1.40 on revenue of $2.35 billion.
Terex expects 2008 earnings of $6.65 to $7.15 a share on revenue of $10 billion to $10.5 billion.Analysts are looking for a 2008 profit of $6.68 a share on revenue of $9.77 billion.
Shares of Terex closed at $62.21 and climbed 5% in after-hours trade.
Terex expects 2008 earnings of $6.65 to $7.15 a share on revenue of $10 billion to $10.5 billion.Analysts are looking for a 2008 profit of $6.68 a share on revenue of $9.77 billion.
Shares of Terex closed at $62.21 and climbed 5% in after-hours trade.
TV Ads Losing Effect...Marketers Move to Internet....
62% of marketers believe TV ads have become less effective in the past two years, Forrester Research says, perhaps a byproduct of digital recordings, ad zappers, or our waning attention spans. Conversely, 87% plan to boost spending on internet advertising.
RIMM Raises Forecast...
BlackBerry maker Research In Motion Ltd. (RIMM) raised its forecast for fourth quarter net subscriber account additions, putting them about 15-20% higher than the 1.82 million net subscriber account additions it projected in December.
The Waterloo, Ont. company said its BlackBerry subscriber account base is expected to total about 14 million at the end of the fourth quarter. Research In Motion said the seasonal slowdown in net subscriber account additions that it had expected in the new year didn't occur.
The company also confirmed its fourth-quarter revenue guidance of $1.80-$1.87 billion and earnings guidance of 66-70 cents a share. Research In Motion, which makes wireless products for the mobile communications market, will report results for the fourth quarter ending March 1 on April 2.
RIMM is trading up 6 to $103.50 premarket.
The Waterloo, Ont. company said its BlackBerry subscriber account base is expected to total about 14 million at the end of the fourth quarter. Research In Motion said the seasonal slowdown in net subscriber account additions that it had expected in the new year didn't occur.
The company also confirmed its fourth-quarter revenue guidance of $1.80-$1.87 billion and earnings guidance of 66-70 cents a share. Research In Motion, which makes wireless products for the mobile communications market, will report results for the fourth quarter ending March 1 on April 2.
RIMM is trading up 6 to $103.50 premarket.
Wednesday, February 20, 2008
Wednesday's Summary....
U.S. Markets
Dow +90.04 (+0.73%)
Nasdaq +20.90 (+0.91%)
S&P 500 +11.25 (+0.83%)
News That Moved the Market
Markets End Higher After FOMC Minutes Released. The markets were able to end the day with gains after investors mulled over the latest FOMC minutes. The Fed said it was ready to continue easing rates, but once the economy resumes some momentum, but it will look to swiftly increase rates again. It also projected the economy's growth to slow to 1.2%-2.0%, a drop from the 1.8%-2.5% it forecasted in October. Inflation was a hot topic, as the Fed still expected the economic slowdown to help dampen such pressures, however, it was clear in the minutes this view was not shared by all members. Dallas Fed president Richard Fisher voted against the last rate cut, believing the upside risks to inflation trumped downside risks to growth. In all, the minutes had both good and bad points, but investors keyed in on the fact the Fed was ready to cut rates again to spur growth and avoid a recession.
Inflationary Pressures Remain. Before the Minutes were release, the Labor Department announced consumer prices jumped 0.4%, while core prices increased 0.3%. The figures were greater than expected, and revealed the economic slowdown had failed to alleviate inflationary pressures. Year-over-year, CPI increased 4.3%, while core CPI climbed 2.5%. The Fed will now have to be extremely careful easing rates, and must look to increase rates again as soon as it thinks the economy can handle it.
Another Record Day For Crude. Oil marched higher, closing at $101.32, an all-time record. Greater demand along with a further weakening dollar were catalysts for the increase. Some experts believe the only thing that will ultimately end crude's rally is a serious world economic downturn.
Quick Tics: The Commerce Department reported a small gain in housing starts…Hewlett-Packard (HPQ, +7.9%) reported a stellar quarter and forecasted higher earnings for next quarter than analysts expected…KKR Financial Holdings (KFN, 1.9%) will delay repaying debt on asset-backed paper and will enter restructuring negotiations….The prices wars in telecom took their toll on the companies involved including AT&T (T, -4.3%) and Verizon (VZ, -0.3%).
Tomorrow Notable Earnings :
Safeway (SWY) Before Open
Economic Events:
8:30 AM: Jobless Claims
10:00 AM: Leading Indicators
10:00 AM: Philadelphia Fed
10:30 AM: Crude Inventories
Dow +90.04 (+0.73%)
Nasdaq +20.90 (+0.91%)
S&P 500 +11.25 (+0.83%)
News That Moved the Market
Markets End Higher After FOMC Minutes Released. The markets were able to end the day with gains after investors mulled over the latest FOMC minutes. The Fed said it was ready to continue easing rates, but once the economy resumes some momentum, but it will look to swiftly increase rates again. It also projected the economy's growth to slow to 1.2%-2.0%, a drop from the 1.8%-2.5% it forecasted in October. Inflation was a hot topic, as the Fed still expected the economic slowdown to help dampen such pressures, however, it was clear in the minutes this view was not shared by all members. Dallas Fed president Richard Fisher voted against the last rate cut, believing the upside risks to inflation trumped downside risks to growth. In all, the minutes had both good and bad points, but investors keyed in on the fact the Fed was ready to cut rates again to spur growth and avoid a recession.
Inflationary Pressures Remain. Before the Minutes were release, the Labor Department announced consumer prices jumped 0.4%, while core prices increased 0.3%. The figures were greater than expected, and revealed the economic slowdown had failed to alleviate inflationary pressures. Year-over-year, CPI increased 4.3%, while core CPI climbed 2.5%. The Fed will now have to be extremely careful easing rates, and must look to increase rates again as soon as it thinks the economy can handle it.
Another Record Day For Crude. Oil marched higher, closing at $101.32, an all-time record. Greater demand along with a further weakening dollar were catalysts for the increase. Some experts believe the only thing that will ultimately end crude's rally is a serious world economic downturn.
Quick Tics: The Commerce Department reported a small gain in housing starts…Hewlett-Packard (HPQ, +7.9%) reported a stellar quarter and forecasted higher earnings for next quarter than analysts expected…KKR Financial Holdings (KFN, 1.9%) will delay repaying debt on asset-backed paper and will enter restructuring negotiations….The prices wars in telecom took their toll on the companies involved including AT&T (T, -4.3%) and Verizon (VZ, -0.3%).
Tomorrow Notable Earnings :
Safeway (SWY) Before Open
Economic Events:
8:30 AM: Jobless Claims
10:00 AM: Leading Indicators
10:00 AM: Philadelphia Fed
10:30 AM: Crude Inventories
My Space Getting Into Music....
News Corp. (NWS) is in talks with major music labels about a venture that would offer music through 1) ad-based downloads and 2) streaming to a PC. The labels have been offered an equity stake in the site, MySpace Music. Social networks Imeem and Last.fm already have streaming deals with music labels. Labels approached include Vivendi's Universal, Warner (WMG), EMI Group, and Sony (SNE) BMG. Complications include Universal Music's outstanding copyright infringement suit against MySpace.
Copycat Carriers....
In a game of Tuesday-tag, Verizon Wireless (VZ) launched a $100/month unlimited U.S. calling plan. AT&T (T) was soon to follow. Not to be outdone, T-Mobile (DT) jumped on the bandwagon late in the day, and kicked in unlimited text and picture messaging. Shares fell. T -5.25%; VZ -6.6%; DT -2.6%. Sprint (S), the only major carrier left out (thus far) still dropped 3.55%. Besides each other, the group also compete with VoIP providers like Comcast (CMCSA) and Vonage (VG), who offer unlimited plans for as little as $25.
Sony and Toshiba Join Forces....
Sony Corp. (SNE). The Japanese electronics company will receive 90 billion yen for its high-performance semiconductor operations from rival Toshiba Corp. (TOSBF), Toshiba said today. Despite being fierce competitors in other areas, the two companies said they had firmed up a deal to form a semiconductor joint venture owned 60% by Toshiba and 40% by Sony.
Garmin Jumps After Beating Expectations...
Garmin Ltd. (GRMN). The George Town-based provider of provider of navigation, communications and information devices today said fourth-quarter net income rose to $307.3 million, or $1.39 a share, from $180.3 million, or 82 cents a share, in the same quarter a year earlier.
Revenue rose to $1.22 billion from $611 million a year ago, with North American sales seeing the largest percentage jump year-over-year. For 2008, the company expects earnings to exceed $4.40 a share with revenue expected to top $4.5 billion.
The stock is up 6 points to $72.50 premarket. It is still way down off its 52-week high of $125 hit in late October.
Revenue rose to $1.22 billion from $611 million a year ago, with North American sales seeing the largest percentage jump year-over-year. For 2008, the company expects earnings to exceed $4.40 a share with revenue expected to top $4.5 billion.
The stock is up 6 points to $72.50 premarket. It is still way down off its 52-week high of $125 hit in late October.
Crocs Disappoints Traders...
Crocs Inc. (CROX). The Niwot, Colorado-based footwear company said late Tuesday net income rose to $38.3 million, or $0.45 a share, from $20.8 million, or $0.26 a share, a year earlier.
The company said revenue nearly doubled to $224.8 million from $112.9 million a year ago. It reaffirmed its 2008 earnings and revenue forecasts of $2.70 a share and $1.16 billion, respectively.
Analysts were expecting $0.44. Nonetheless...the stock got pounded in after hours trading last night. The is down 15% to $27.80 premarket.
The company said revenue nearly doubled to $224.8 million from $112.9 million a year ago. It reaffirmed its 2008 earnings and revenue forecasts of $2.70 a share and $1.16 billion, respectively.
Analysts were expecting $0.44. Nonetheless...the stock got pounded in after hours trading last night. The is down 15% to $27.80 premarket.
Earnings This Week...
Major companies tentatively scheduled to report quarterly earnings this week:
Wednesday
Allied Capital Corp. (ALD) 4Q .27
Career Education Corp. (CECO) 4Q .31
Constellation Energy Partners LLC (CEP) 1Q .44
Garmin Ltd. (GRMN) 4Q 1.13 BMO
Health Mgmt Associates Inc. (HMA) 4Q .08 AMC
LodgeNet Interactive Corp. (LNET) 4Q (.45) AMC
Netease.com Inc. (NTES) 4Q .30 AMC
Oceaneering Intl Inc. (OII) 4Q .81 5:00PM
Suntech Power Hldgs Co. Ltd. STP) 4Q .38 BMO
Synopsys Inc. (SNPS) 1Q .34 AMC
Terex Corp. (TEX) 1Q 1.38 AMC
Tim Hortons Inc. (THI) 4Q .41 BMO
TJX Cos. (TJX) 4Q .61 9:30AM
Transocean Inc. (RIG) 1Q 3.32
Ultra Petroleum Corp. (UPL) 4Q .31
Watson Pharms Inc. (WPI) 4Q .32 BMO
Wellcare Health Plans Inc. (WCG) 1Q) .73 Unspecified
Thursday
Allianz SE (AZ) 4Q .37 1:30AM
Barrick Gold Corp. (ABX) 4Q .53 BMO
Chesapeake Energy Corp. (CHK) 4Q .81 AMC
Cleveland-Cliffs Inc. (CLF) 4Q 1.68 AMC
Continental AG (CTTAY) 4Q 3.28
DTE Energy Co. (DTE) 4Q .84
EMCOR Grp Inc. (EME) 4Q .65
Express Scripts Inc. (ESRX) 4Q .65 AMC
Goldcorp Inc. (GG) 4Q .17 BMO
Intuit Inc. (INTU) 2Q .34 AMC
J.C. Penney Co. Inc. (JCP) 4Q 1.74
Kaydon Corp. (KDN) 1Q .62 7:00AM
Kinross Gold Corp. (KGC) 4Q .08 AMC
Mgm Mirage (MGM) 4Q .57
Newmont Mining Corp. (NEM) 4Q .42
OSI Pharms Inc. (OSIP) 4Q .29 AMC
Quest Diagnostics Inc. (DGX) 4Q .78 BMO
Safeway Inc. (SWY) 4Q .68
Vasco Data Security Intl Inc. (VDSI) 4Q .20
VCA Antech Inc. (WOOF) 4Q .26 4:00PM
WebMD Health Corp. (WBMD) 4Q .29 4:00PM
Williams Cos. (WMB) 4Q .48 BMO
Friday
Life Time Fitness Inc. (LTM) 4Q .48
Newpark Resources Inc. (NR) 4Q .09 6:00AM
PG&E Corp. (PCG) 4Q .56
Rogers Commun Inc. (RCI) 4Q .42 BMO
St. Mary Land & Exploration Co. (SM) 4Q .89
Westwood One Inc. (WON) 4Q .04
Wednesday
Allied Capital Corp. (ALD) 4Q .27
Career Education Corp. (CECO) 4Q .31
Constellation Energy Partners LLC (CEP) 1Q .44
Garmin Ltd. (GRMN) 4Q 1.13 BMO
Health Mgmt Associates Inc. (HMA) 4Q .08 AMC
LodgeNet Interactive Corp. (LNET) 4Q (.45) AMC
Netease.com Inc. (NTES) 4Q .30 AMC
Oceaneering Intl Inc. (OII) 4Q .81 5:00PM
Suntech Power Hldgs Co. Ltd. STP) 4Q .38 BMO
Synopsys Inc. (SNPS) 1Q .34 AMC
Terex Corp. (TEX) 1Q 1.38 AMC
Tim Hortons Inc. (THI) 4Q .41 BMO
TJX Cos. (TJX) 4Q .61 9:30AM
Transocean Inc. (RIG) 1Q 3.32
Ultra Petroleum Corp. (UPL) 4Q .31
Watson Pharms Inc. (WPI) 4Q .32 BMO
Wellcare Health Plans Inc. (WCG) 1Q) .73 Unspecified
Thursday
Allianz SE (AZ) 4Q .37 1:30AM
Barrick Gold Corp. (ABX) 4Q .53 BMO
Chesapeake Energy Corp. (CHK) 4Q .81 AMC
Cleveland-Cliffs Inc. (CLF) 4Q 1.68 AMC
Continental AG (CTTAY) 4Q 3.28
DTE Energy Co. (DTE) 4Q .84
EMCOR Grp Inc. (EME) 4Q .65
Express Scripts Inc. (ESRX) 4Q .65 AMC
Goldcorp Inc. (GG) 4Q .17 BMO
Intuit Inc. (INTU) 2Q .34 AMC
J.C. Penney Co. Inc. (JCP) 4Q 1.74
Kaydon Corp. (KDN) 1Q .62 7:00AM
Kinross Gold Corp. (KGC) 4Q .08 AMC
Mgm Mirage (MGM) 4Q .57
Newmont Mining Corp. (NEM) 4Q .42
OSI Pharms Inc. (OSIP) 4Q .29 AMC
Quest Diagnostics Inc. (DGX) 4Q .78 BMO
Safeway Inc. (SWY) 4Q .68
Vasco Data Security Intl Inc. (VDSI) 4Q .20
VCA Antech Inc. (WOOF) 4Q .26 4:00PM
WebMD Health Corp. (WBMD) 4Q .29 4:00PM
Williams Cos. (WMB) 4Q .48 BMO
Friday
Life Time Fitness Inc. (LTM) 4Q .48
Newpark Resources Inc. (NR) 4Q .09 6:00AM
PG&E Corp. (PCG) 4Q .56
Rogers Commun Inc. (RCI) 4Q .42 BMO
St. Mary Land & Exploration Co. (SM) 4Q .89
Westwood One Inc. (WON) 4Q .04
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