Morning News Bulletin
Early Edition
Economic Numbers
|
Date |
ET |
Release |
For |
Range |
Consensus |
Prior |
Actual |
|
Jul 08 |
|
Pending Home Sales |
May |
|
-2.8% |
6.3% |
|
|
Jul 08 |
|
May |
|
0.7% |
1.3% |
|
|
|
Jul 08 |
|
May |
|
$7.0B |
$8.9B |
|
Technical
Moving Averages
50-Day
200-Day
S&P
Dow
NASDAQ
Futures
S&P
futures vs fair value: -8.7. Nasdaq
futures vs fair value: -18.5.
Pre-Market Movers
Gapping up: OPWV +11.5%, UXG +8.3%,
BPHX +7.5%, BEXP +5.9%, YGE +4.8%, GSK +4.3%, TRLG +3.9%, MDVN +3.7%, GMXR
+2.2%, UBS +1.6%, TEVA +1.1%...
Gapping down: BRLC -67.4%, IMB -32.4%, ODP
-11.1%, GOLD -4.3%, LMC -3.6%, TS -3.4%, SNV -3.0%, AOB -3.0%, LYG -2.6%, BCS
-2.5%, MT -2.3%, BCS -1.7%, HOGS -1.6%.
The Wall Street Journal reports the best
worst-case scenario for Freddie Mac (FRE)
and Fannie Mae (FNM) looks to be
large capital raises in which millions of new common shares are issued,
diluting the holdings of existing shareholders. FBR Capital Markets analyst
Paul Miller believes each co needs to raise an extra $15 bln in common equity.
Fannie, for instance, has a current market value of about $15 bln. That means
that at its current stock price it would have to roughly double its shares
outstanding to raise $15 bln. And it isn't clear just how much new capital
Fannie and Freddie need. Mr. Miller's $15 bln could prove optimistic. Each
quarter, Fannie and Freddie release an estimate of the market value of their
balance sheets and net worth. At the end of March, Freddie's net worth
available to common shareholders was negative to the tune of $16.9 bln. But
even that number was inflated by a $16.6 bln deferred-tax asset, which has a
questionable value. In other words, Freddie would have to issue more than $30
bln of stock to cover the $16.9 bln market-value deficit and the deferred-tax
asset. Some of the market-value losses will be made up over time. But some
losses could get worse. Credit losses could rise to higher-than-expected levels
if house prices continue to plunge.
Earnings/Guidance
PBG Pepsi Bottling Reports Q2 (May) earnings of $0.78
per share, $0.03 better than the First Call
consensus of $0.75; revenues rose 4.8% year/year to $3.52 bln vs the $3.55 bln
consensus. Co reaffirms EPS guidance for FY08, sees EPS of $2.30-2.38 vs. $2.35
consensus; co sees rev growth of about 5-6%, which equates to approx
$14.3-14.4 bln vs $14.4 bln consensus, compared to previous guidance of rev
growth of about 6-7%.
GBX Greenbrier Comp Reports Q3 (May) earnings of $0.49
per share, $0.11 better than the First Call
consensus of $0.38; revenues fell 1.2% year/year to $382.1 mln vs the $352.9
mln consensus. New railcar manufacturing backlog was 17,500 units valued at
$1.55 bln at
SSI Stage Stores Co issues upside
guidance for Q2 (Jul), sees EPS of above $0.23 vs. $0.18 First Call
consensus
BPHX
Blue Phoenix Co issues downside guidance
for Q2 (Jun), sees Q2 (Jun) revs of $22.7-23.0 mln vs. $23.68 mln First Call
consensus. Arik Kilman, CEO of BluePhoenix commented, "Based on a
preliminary review of our second quarter results, revenues are expected to be
in the range of $22.7 to $23.0 million for Q208, up approx 18% to 20% compared
to $19.2 mln in last year's same period. Challenging global economic
conditions, particularly related to IT spending have resulted in a somewhat
longer sales cycle, and as such, our ability to forecast the timing of revenue
recognition is proving more difficult than normal."
CALD Callidus Software Co
issues downside guidance, sees Q2 revs of
$23.1-23.7 mln, compared to previous guidance of $28-29.5 mln, vs $28.8
mln consensus; co sees GAAP operating expenses of $13.7-14.2 mln, compared to
previous guidance of $15.2-16.2 mln.
CBBO Columbia Banc Co issues in-line guidance for Q2
(Jun), sees EPS of ($0.04)-($0.06) vs. ($0.05) First Call consensus.
CHKP Check Point Sftwr: Expecting another strong
quarter
Other Stock News
DWA DreamWorks The Wall Street Journal reports DreamWorks
Animation SKG (DWA) has chosen Intel
(INTC) to supply chips and other
technology for its big computer-animation operations, a shift that will cost
Advanced Micro Devices (AMD) one of
its most prestigious customers. The pact is expected to replace the studio's
computing hardware -- which now includes 1,500 Hewlett-Packard (HPQ) server systems and 1,000
workstations that use AMD microprocessors -- with new H-P systems that use
Intel chips. DreamWorks Animation said the resulting increase in computing power
would substantially shorten the time needed for many computing chores and aid
the studio's planned shift next year to 3-D animation.
BCS Barclays PLC
Bloomberg.com reports Barclays said it will stop selling new loans at
its
]
BIDU Baidu.com Piper
Jaffray says their checks indicate that the June quarter is tracking slightly
above Street estimates of $112 mln in revenue and $0.97 in EPS. The firm says
even with uncertainty around the impact from Olympics, they believe that Baidu
will maintain the Q308 Street estimates given Street is currently looking for
21% q/q revenue growth in September vs. last year's 26% growth.
BTRX Barrier Therapeutics: Stiefel
Laboratories commences tender offer to acquire Barrier Therapeutics for
$4.15/share
GSK
GlaxoSmithKline's Tyverb cancer drug fails to win
IMB IndyMac Banc
FBR cuts their tgt to $0.00 from $1, after the
co announced that its Q2 loss will exceed losses in Q1, it is no longer
"well-capitalized," it has been unable to raise additional capital,
it will lay off 53% of its workforce, and it will stop originating most new
loans (which firm thinks is the most significant of the co's
actions). Firm is not predicting IMB's failure, but does not believe that there
is any value left for common shareholders after these actions.
Earnings/Guidance
GMXR GMX Resources Co raises its FY08 revenue guidance
to $140 mln vs. $131.07 mln and vs. previous guidance of $125 mln. Co also
raises its 2008 discretionary cash flow guidance to $100 mln, up from $80 mln,
and its EBITDA to $115 mln, up from $95 mln.
Other Stock News
VSEC Energetics wins DoE contract to support federal
energy programs
PENN
Penn National Gaming secures option to acquire potential gaming site in
Perryville
Economic
Secondary Offerings/IPO’s
Filings: MSCI Inc. (MXB) files for a 23
mln share offering by selling stockholders... Cell Therapeutics (CTIC)
files two S-3 filings offering a total of 34.9 mln common stock
shares issuable upon exercise of warrants, by
selling shareholders... Exelixis (EXEL) files
for a 9.9 mln share offering by selling security holders.... Kirklands (KIRK) files for a 2.6 mln common stock offering
by selling shareholders. Offerings: Cell
Therapeutics (CTIC) also files a separate S-3 for a 43.6 mln common stock
offering... IPC The Hospitalist
files for a 3.5 mln share offering, 1.135 mln for the company, and 2.36 mln by
selling stockholders.
S&P Index Changes
S&P
SmallCap 600 constituent Helix Energy Solutions Group (HLX) will replace
Activision (ATVI) in the S&P MidCap 400, and True Religion
Apparel (TRLG) will replace Helix Energy Solutions in the S&P SmallCap
600.
Cramer’s “Mad Money” Recap
On Monday's
edition, Jim recommends Genentech (DNA)
as his favorite biotech name and claims its time to buy shares off the com's
negative press from a recent New York Times story. He called the Times story a
non-event and said the resulting weakness in the shares provides a perfect
entry point to buy the stock. Cramer also noted that sales of Avastin, which
have been sluggish for the past three quarters, are set to beat expectations
and begin boosting the stock.
Upgrades
|
Company |
Ticker |
Brokerage Firm |
Ratings Change |
Price Target |
|
Medivation |
MDVN |
Rodman & Renshaw |
Mkt Perform » Mkt Outperform |
$24 |
|
Master card |
MA |
Morgan Stanley |
|
$320 |
|
ACE Limited |
ACE |
Wachovia |
Mkt Perform » Outperform |
|
|
NCR Corp |
NCR |
Robert W. Baird |
Neutral » Outperform |
$26 » $31 |
|
|
FULT |
Keefe Bruyette |
Underperform » Mkt Perform |
$9 |
|
Valley National |
VLY |
Keefe Bruyette |
Underperform » Mkt Perform |
$14 |
|
WD-40 Company |
WDFC |
JP Morgan |
Underweight » Neutral |
|
|
Capital Trust |
CT |
UBS |
Sell » Neutral |
|
|
Marsh McLennan |
MMC |
Citigroup |
Hold » Buy |
$30 » $33 |
|
|
ACAD |
Banc of |
Sell » Neutral |
|
Downgrades
|
Company |
Ticker |
Brokerage Firm |
Ratings Change |
Price Target |
|
Tween Brands |
TWB |
Friedman Billings |
Outperform » Mkt Perform |
$23 » $18 |
|
Gymboree |
GYMB |
Friedman Billings |
Outperform » Mkt Perform |
$49 » $43 |
|
Asset Acceptance Capital |
AACC |
Jefferies & Co |
Hold » Underperform |
$8 |
|
Skyepharma plc |
SKYE |
Jefferies & Co |
Hold » Underperform |
|
|
Synovus |
SNV |
Morgan Keegan |
Outperform » Mkt Perform |
|
|
Tronox |
TRX |
Lehman Brothers |
Equal-Weight » Underweight |
|
|
Teva Pharm |
TEVA |
Deutsche Securities |
Buy » Hold |
$55 » $47 |
|
|
DSL |
Lehman Brothers |
Overweight » Equal-Weight |
|
|
Omnicom |
OMC |
Bernstein |
Outperform » Mkt Perform |
|
|
Willis Group |
WSH |
Citigroup |
Buy » Hold |
$40 » $36 |
*The information
contained herein has been compiled from various public news sources and from
the public domain. Hold Brothers On-Line Investment Services LLC provides this
information solely as a convenience to its traders. Neither Hold Brothers
On-Line Investment Services LLC nor its data or content providers make any
representation or recommendation as to the stocks identified herein, nor shall
they shall be liable for any errors in the content, or for any damages as a
result of actions taken in reliance on this information. This material does not
constitute nor should be considered stock research on the part of Hold Brothers
On-Line Investment Services LLC. Trade at your own risk.
For
internal use only.