News Bulletin

Wednesday January 20th2010

Late Edition

9am

 

 

 

Economic Numbers

 

 

Time

Event

Range

Estimate

Prior

Actual

8:30am

Producer Price Index (MoM)

-0.5% to 0.5%

0.0%

1.8%

0.2

8:30am

PPI Ex Food & Energy (MoM)

0.0% to 0.3%

0.1%

0.5%

0.0

8:30am

Producer Price Index (YoY)

3.9% to 4.8%

4.5%

2.4%

4.4

8:30am

PPI Ex Food & Energy (YoY)

0.9% to 1.2%

1.0%

1.2%

0.9

8:30am

Housing Starts

495K to 630K

574K

574K

557

8:30am

Building Permits

530K to 625K

589K

584K

653

 

 

 

Thomson –Reuters Stocks to Watch - BAC, MS, WFC, IBM, USB, BK, STT, COV, COH, AIT, RMBS

 

 

 

Technical                   Moving Averages

                                                               

                                50-Day                   200-Day                                                                

S&P                          1112                        1002                                                                                                                                                                                                                                                                                                  

Dow                          10433                       9335                                                                                                                                                                                                                                                                  

NASDAQ                2218                         1983                                                                                                                                                                                                                                                                                                                                                           

 

                                                               

Futures

 

S&P futures vs fair value: -5.80. Nasdaq futures vs fair value: -11.00.

Strong, broad-based buying in the previous session took stocks to a fresh 52-week closing high, but participants have turned a bit to put moderate pressure on stock futures this morning. Pressure comes in the face of several better-than-expected earnings reports, including those of tech bellwether IBM (IBM), high-end retailer Coach (COH), and banking and financial services outfitsU.S. Bancorp (USB), State Street (STT), and Bank of New York (BK). However, Bank of America (BAC) disappointed with a deeper-than-expected loss, while Morgan Stanley (MS) and Wells Fargo (WFC) have yet to report their latest figures. Keeping on banks, Reuters reported that China's authorities ordered some big banks to curb lending for the rest of January in a move that has been viewed as an effort to tighten policy so as to prevent the country's economy from overheating. China's Shanghai Composite dropped nearly 3% in the wake of the news. In addition to a couple of key earnings announcements, there are several key reports still to come this morning, including producer prices for December and housing starts and building permits for December. The latter half are due at the bottom of the hour.

 

Pre-Market Movers

 

Gapping up: RMBS +15.0%, SIRI +12.1%, CREE +10.0%, PPO +5.8%

In reaction to strong earnings/guidance: CREE +10.0% (also target raised to $70 from $48 at Piper Jaffray), LAB +8.9%, EAT +6.5%, COV +5.5% (light volume), NTRS +3.1%, WFC +2.5%, BK +2.3%, ASML +1.9%, MS +1.5%, USB +1.3% (light volume), BAC +1.3%... Select managed healthcare names ticking higher: HNT +7.8%, WCG +3.4%, AET +2.6%, WLP +1.1%, UNH +1.0%... Select solar stocks showing modest strength: JASO +2.0%, TSL +1.8%... Other news: LXRX +23.9% (announces phase 2 Trial of LX4211 demonstrates significant and rapid improvements in multiple parameters in type 2 diabetic patients), RMBS +13.7% (Rambus and Samsung sign comprehensive agreement; Samsung to invest $200 mln), DEER +12.1% (announces 3 year national sales agreement with Chinese electronic retailer; sees 2010 revs above consensus ests), IOC +11.9% (confirms indications of oil at Antelope-2), SIRI +10.6% (adds 257,000 net subscribers in the fourth quarter), PPO +5.4% (Polypore signs new evergreen supply agreement with Exide), TLVT +2.7% (Cramer makes positive comments on MadMoney), CBE +1.5% (Cramer makes positive comments on MadMoney)... Analyst comments: SHPGY +3.2% (upgraded to Overweight at JPMorgan), ADM +1.5% (upgraded to Buy from Hold at Citigroup), DOW +1.0% (initiated with an Overweight at Morgan Stanley).

 

Gapping down: AXU -5.3%, ANW -4.5%, RTP -4.0%, NRGY -3.5%, BBL -3.5%, MT -3.5%, CSX -3.3%, UBS -3.1%, BHP -3.1%, SCHW -3.1%, DAI -2.9%, AMTD -2.8%, AMAG -2.6%, CNK -2.5%, GOLD -2.4%, STD -2.1%, CS -2.0%, IBM -1.8%, RDS.A -1.6%, TOT -1.4%, NSC -1.3%, GLD -0.9%.

 

Wednesday January 20th2010 Top News Stories

 

JPM JP Morgan in exclusive talks on RBS Sempra - ReutersReuters reports JP Morgan (JPM) has entered exclusive talks to buy the RBS Sempra commodities joint venture, people familiar with the matter said on Wednesday, in a deal expected to be worth about $4 bln. JPMorgan, Deutsche Bank (DB) and Australia's Macquarie had each submitted offers worth nearly $4 bln for the RBS Sempra unit by an early January deadline.

DEER Deer Consumer Products announces 3 year national sales agreement with Chinese electronic retailer; sees 2010 revs above consensus ests  (12.41)

 

Wednesday January 20th2010

 

 

Earnings

 

BAC Bank of America reports wider than expected loss, including dividends one-time $4.0 bln negative impact associated with repaying TARP  (16.32) Reports Q4 (Dec) loss of $0.60 per share, including dividends on preferred stock and the one-time $4.0 bln negative impact associated with repaying TARP, $0.07 worse than the First Call consensus of ($0.53); revenues rose 58.7% year/year to $25.4 bln vs the $26.84 bln consensus.

WIT Wipro beats by $0.03, beats on revs  (23.21) Reports Q3 (Dec) earnings of $0.18 per share, $0.03 better than the First Call consensus of $0.15; revenues rose 11.4% year/year to $1.5 bln vs the $1.47 bln consensus.

ADTN ADTRAN beats by $0.02, beats on revs  (22.87) Reports Q4 (Dec) earnings of $0.29 per share, includes stock-based compensation expense, $0.02 better than the First Call consensus of $0.27; revenues rose 10.5% year/year to $124.2 mln vs the $120.5 mln consensus.

PNFP Pinnacle Finl misses by $0.06, misses on revs  (14.53) Reports Q4 (Dec) loss of $0.12 per share, $0.06 worse than the First Call consensus of ($0.06); revenues rose 11.3% year/year to $42.2 mln vs the $45 mln consensus.

IGTE iGATE misses by $0.01, beats on revs  (10.51) Reports Q4 (Dec) earnings of $0.15 per share, $0.01 worse than the First Call consensus of $0.16; revenues rose 1.7% year/year to $52.4 mln vs the $51 mln consensus.

COV Covidien beats by $0.11, beats on revs; reaffirms FY10 revenue +6.0-9.0%  (49.45) Reports Q1 (Dec) earnings of $0.86 per share, excluding non-recurring items, $0.11 better than the First Call consensus of $0.75; revenues rose 7.2% year/year to $2.75 bln vs the $2.64 bln consensus.

BK Bank of NY reports Q4 EPS of $0.55, ex- $0.04 in a tax benefit offset by restructuring  (29.53) Reports Q4 (Dec) earnings of $0.55 per share, excluding non-recurring items and a $0.04 benefit from a tax benefit offset by restructuring, $0.04 better than the First Call consensus of $0.51

AIT Applied Industrial misses by $0.02, beats on revs; guides FY10 EPS in-line, revs in-line  (24.30) Reports Q2 (Dec) earnings of $0.24 per share, $0.02 worse than the First Call consensus of $0.26; revenues fell 11.2% year/year to $446.3 mln vs the $433.8 mln consensus.

COH Coach beats by $0.03, beats on revs  (37.45) Reports Q2 (Dec) earnings of $0.75 per share, $0.03 better than the First Call consensus of $0.72; revenues rose 10.9% year/year to $1.06 bln vs the $1.02 bln consensus.

USB US Bancorp beats by $0.01, beats on revs  (24.49) Reports Q4 (Dec) earnings of $0.30 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.29; revenues rose 3.0% year/year to $4.38 bln vs the $4.28 bln consensus.

STT State Street beats by $0.03, beats on revsReports Q4 (Dec) earnings of $1.00 per share, $0.03 better than the First Call consensus of $0.97; revenues fell 14.7% year/year to $2.28 bln vs the $2.17 bln consensus.

EAT Brinker beats by $0.07, reports revs in-line  (15.31) Reports Q2 (Dec) earnings of $0.29 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.22; revenues fell 17.6% year/year to $781.9 mln vs the $774.2 mln consensus.

JEF Jefferies Group beats by $0.10, misses on revs  (25.83) Reports Q4 (Dec) earnings of $0.46 per share, $0.10 better than the First Call consensus of $0.36; revenues rose 249.7% year/year to $538.2 mln vs the $599.8 mln consensus.

LAB Labranche beats two analyst est by $0.06  (4.27) Reports Q4 (Dec) earnings of $0.07 per share, $0.06 better than the two analyst est of $0.01.

MTB M&T Bank beats on the bottom line  (74.70) Reports Q4 (Dec) GAAP earnings of $1.04 per share, $0.16 better than the GAAP First Call consensus of $0.88.  The provision for credit losses was $145 mln during the recently completed quarter, compared with $151 mln in the corresponding 2008 period.

WFC Wells Fargo beats by $0.09, beats on revs  (28.28) Reports Q4 (Dec) earnings of $0.08 per share, reduced by $0.47 for TARP preferred stock dividends, including $0.39 per share upon redemption of TARP preferred stock, $0.09 better than the First Call consensus of ($0.01); revenues of $22.7 bln vs the $21.97 bln consensus.

NTRS Northern Trust beats by $0.16, beats on revs  (52.43) Reports Q4 (Dec) earnings of $0.82 per share, $0.16 better than the First Call consensus of $0.66; revenues fell 17.4% year/year to $950.2 mln vs the $924 mln consensus.

MS Morgan Stanley misses by $0.22, misses on revs  (31.16) Reports Q4 (Dec) earnings of $0.14 per share, $0.22 worse than, which includes TARP repayment, the First Call consensus of $0.36; revenues were $6.84 bln vs the $7.81 bln consensus.

CRRC Courier reports Q1 EPS of $0.23 vs $0.04 single analyst estimate; revs $63.10 mln vs $75.51 mln single analyst estimate; Courier sees FY10 EPS of $0.75-1.00 vs $0.78 single analyst estimate; sees revs $255-265 mln vs $285.45 mln single analyst estimate  (13.28)

MI Marshall & Ilsley misses by $0.06  (6.98) Reports Q4 (Dec) loss of $0.54 per share, including goodwill charges, $0.06 worse than the First Call consensus of ($0.48).

 

Other Stock News

 

XRX Xerox acquires Irish Business Systems: expands SMB channel in the Republic of Ireland and Northern Ireland  (9.02)

ACL Alcon independent director committee determines Novartis' merger proposal to minority shareholders of alcon is "grossly inadequate"  (153.35)

LXRX Lexicon Pharma announces phase 2 Trial of LX4211 demonstrates significant and rapid improvements in multiple parameters in type 2 diabetic patients  (1.97)

AAPL Apple, Microsoft discuss making Bing default iPhone search engine - Business Week  (215.04)

UQM Technologies receives $45.1 million cost-shared grant from the U.S. Department of Energy under the American Reinvestment and Recovery Act   (5.92)

 

Tuesday January 19th,2010

 

 

Earnings

 

CREE--Cree beats by $0.08, beats on revs; guides Q3 EPS and revs well above consensus  (54.21 +0.20)Reports Q2 (Dec) earnings of $0.38 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.30; revenues rose 35.1% year/year to $199.5 mln vs the $186.8 mln consensus.

CSX--CSX Corp beats by $0.01, misses on revs  (50.51 +0.47)Reports Q4 (Dec) earnings of $0.77 per share, $0.01 better than the First Call consensus of $0.76. Revs fell 13% YoY to $2.30 bln vs the $2.39 bln consensus.

IBM--IBM beats by $0.12, reports revs above consensus; guides FY10 EPS to high end of prior range, above consensus  (134.14 +2.36)Reports Q4 (Dec) earnings of $3.59 per share, $0.12better than the First Call consensus of $3.47; revenues rose 0.7% year/year to $27.2 bln vs the $26.96 bln consensus. Reports Q4 gross margins of 48.3% vs Street est of 48.4%. Co issuesupside guidance for FY10, sees EPS of at least $11.00 vs. $10.88 consensus.

SUPX--Supertex beats by $0.01, misses on revs  (28.59 -0.97)Reports Q3 (Dec) earnings of $0.15 per share, $0.01 better than the First Call consensus of $0.14; revenues fell 5.1% year/year to $16.7 mln vs the $17.2 mln consensus.



Other Stock News

 

SRX--SRA Intl awarded $98 million contract from Food and Drug Administration   (18.74 +0.28)

FSLR--First Solar, PNM sign contract for 22 megawatts of utility scale power for New Mexico  (123.94)

BHP--BHP Billiton 2Q iron ore output 32.4 mln metric tons, +11% on yr - DJ  (81.03 +1.78)

CVVT--China Valves Tech unit discloses asset purchase agreement with Yangzhou Rock Valve Lock Technology   (11.25 +0.24)

ALD--Allied Capital rejected an unsolicited non-binding offer from Prospect Capital Corporation  (4.33 +0.22)Co discloses that on January 19, 2010, the Board of Directors of Allied Capital unanimously rejected an unsolicited non-binding offer from Prospect Capital Corporationto acquire all of the issued and outstanding shares of Allied Capital in a stock-for-stock merger.

CACI--CACI announces intent to acquire SystemWare; expected to be accretive to earnings in first 12 months.

 

Offerings/IPO’s

 

NRGY--Inergy announces public offering of 4,500,000 common units  (30.73 +0.80)

AMAG--AMAG Pharma announces proposed offering of 3 mln shares of common stock  (49.99)

SCHW--Charles Schwab files for a 26.3 mln share common stock offering  (19.29 +0.29)

ITMN--InterMune Announces Proposed Public Offering of 5 mln shares of Common Stock.

KMP--Kinder Morgan Prtnrs files 1,287,287 share offering  (65.10 +1.65)

Filings: AMAG Pharma (AMAG) filed for a mixed shelf offering for an indeterminate amount; then announced a 3 mn share common stock offering under that shelf... Energy Transfer Equity (ETE) filed for a debt securities shelf offering for an indeterminate amount; then announced a $1.75 bln sr notes offering... Charles Schwab (SCHW) filed for a 26.316 mln share common stock offering... InterMune (ITMN) filed for a 5 mln share common stock offering... Inergy (NRGY) filed for a 4.5 mln share common units offering... Kinder Morgan Prtnrs (KMP) filed for a ~1.28 mln share common units offering by selling unitholders.

 

Cramer’s Mad Money

 

On Tuesday's edition, Jim reaffirms his positive view of Intel (INTC) based in part to strong sales in the notebook and mobile markets, as well as an upgrade cycle in PCs and business servers. Shares trade at 12x EPS vs 10-25 multiple it normally carries. Next, he recommends Cooper Industries (CBE), a co that could benefit from "smart-grid" technology. Cramer said smart-grid technology will be a $200 bln business worldwide in 2015, and that favors Cooper, which derives 88% of its revenues from electrical products. The co gets 61% of its sales from large industrial companies, many of which had delayed their construction efforts, but are now slowly entering recovery mode. Cramer said smart-grid products are a large enough part of Cooper's business to affect EPS. Finally, he suggests Telvent (TLVT), a maker of smart energy meters. Cramer said Telvent has its hands in other businesses, and should do well as the U.S. builds out its energy and natural gas infrastructures, and as agriculture strives for even greater efficiencies. With a $5.1 bln backlog of future sales, Cramer said Telvent will also benefit from more and more federal stimulus money. The co trades at 13x its EPS and has a 16% long-term growth rate.

 

Overseas Markets

 

FTSE...5494.00...-19.10...-0.40%. DAX...5965.09...-11.20...-0.20%.

Nikkei...10737.52...-27.40...-0.30%. Hang Seng...21286.17...-391.80...-1.80%.

 

Upgrades/Downgrades

 

 

 

 

 

 

8am

 

 

*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.

 

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