Savient Pharmaceuticals-SVNT downgraded to Hold from Buy@JEFF
Jefferies downgraded shares on valuation as they believe a potential acquisition premium is already priced in at current levels. The firm lowered their target to $25 from $30.
SINA Corporation-SINA: Believe upside to consensus is highly likely@PALI
Pali believes SINA is highly likely to beat consensus Q2 estimates due to the Olympic Games and associated events as well as its wireless-value-added-services (WVAS) business. The firm reiterates a Buy rating and $75 target on the stock.
Rails: All Aboard! - now may be the time to buy - Barron’s
With gas prices high, both passenger and freight trains are finding new life. One notable investor, Warren Buffett, has already “hopped on board the train”. Over the past 18 months, his Berkshire Hathaway (BRK.A) has built up an 18% equity stake in the Burlington Northern Santa Fe (BNI), the 2nd largest of the publicly traded U.S. freight railroads, along with smaller but substantial holdings in a number of other lines. BNI is up 26% since the start of the year; and Union Pacific (UNP) the No.1 freight line, is up 32%. But given the growth prospects of these and other leading railways, the group still looks reasonably priced. Handling close to 90% of the nation’s freight rail traffic are: CSX (CSX) and Norfolk Southern (NSC), Canadian National (CNI), Canadian Pacific (CP) and Kansas City Southern (KSU). The shares of many freight lines look attractively priced considering their double digit growth prospects. John Larkin, a transport analyst with Stifel Nicolaus and other bulls on the street, see some freight stocks climbing 10% to 15% over the next year, and much higher over the long haul. On the passenger side of the business, there are no U.S. railways with publicly traded stocks, but investors can find some intriguing passenger plays among equipment makers like Canada’s Bombardier (BBD.B), which makes locomotives, passenger cars and more, and Pennsylvania-based Wabtec (WAB), which makes brake systems for railroad and mass-transit markets.
Jim Cramer’s “Mad Money”
On the one-year anniversary of his now infamous “they know nothing” rant about the Fed and its chairman Ben Bernanke, Cramer reflected on his much publicized plea for help. was meant to avoid exactly what’s happened over the past 12 months. He said the staggering losses in the financial sector could have all been avoided had the Fed only listened and cut rates aggressively. financial stocks have fared only slightly better over the past year than the now defunct Bear Stears, which fell 91.5% from its $118 high after being salvaged by JP Morgan Chase (JPM), include Freddie Mac (FRE) down 86%, Merrill Lynch (MER) down 63%, Washington Mutual (WM) down 85%, Lehman Brothers (LEH) down 69%, and Citigroup (C) and Wachovia (WB) both down 59%. Next, Cramer once again welcomed Chesapeake Energy (CHK) co-founder, chair/CEO Aubrey McClendon to discuss his recent trip to Washington, DC and the future of the oil and energy industries. McClendon said his talks with members of Congress focused around moving more of U.S. transportation to cleaner burning natural gas in efforts to both help the environment and rely less on higher-priced, foreign oil. Natural gas has the potential to solve both America’s energy and environmental needs, said McClendon. Cramer again offered his support and recommendation of both McClendon and Chesapeake Energy. For “Speculation Friday” Cramer recommended Fuel Systems (FSYS) as another way to play what he’s deemed “the year of natural gas.” The company makes fuel systems technology that allows forklifts and other industrial and commercial vehicles to run on natural gas. In addition to Fuel Systems, Cramer mentioned Canadian-based Westport Innovations, which is set to launch an IPO on the Nasdaq in the coming months, as well as Clean Energy (CLNE), as two more natural gas stocks to consider. LIGHTNING ROUND (Bullish) APA; GHM; ETR; EXC; ED; PDE. (Bearish) KEY; HHS.
Fast Money position recap- First Moves: Jeff says sell XLF, Karen likes RIG long, Tim likes ERJ.
Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Macke Owns (COST), (MSFT), (EMC), (WMT); Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (SUN), (TSO), (VLO), (RIG); Finerman’s Firm And Finerman Own (C) Leaps; Finerman’s Firm Is Short (XLF), (BBT), (COF), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (CSCO), (F), (INTC), (MER), (MSFT); Seygem Asset Management Is Short (FXI), (VIP).
(Important note on how to use this upgrade/downgrade list with analyst comments and news….you must parse out the factual data (Factual data is the most important) from the opinionated data and always take all analyst comments with a grain of salt. Do not follow blindly with their recommendations. Remember that technicals are the most powerful force in short term direction for stock prices due to the law of supply and demand.)
The market is smack dab in the middle of its recent trading range and I don’t really think it will move much before the Fed meeting tomorrow. Watching for weakness in shippers due to overseas weak action on shippers and a drop in the Baltic Dry Index. Watching my Optiondragon Leading Indicator Basket (LIB) for market direction. LIB= dollar (UUP)+ price of oil (inverse related USO)+ XLF + GS(brokers) + FNM. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great Luck and HappyTrading!
