Zions Bancorp-ZION removed from Conviction Sell List; maintain Sell@GSCO
Mosaic-MOS removed from Conviction Buy List; maintain Buy@GSCO
RadioShack-RSH removed from Conviction Buy List; maintain Buy@GSCO
Jacobs Engineering-JEC removed from Conviction Buy List; maintain Buy@GSCO
Boeing-BA removed from Conviction Sell List; maintain Sell@GSCO
Priceline.com-PCLN: Believe shares are oversold after earnings@BOFA
Banc of America believes the sell-off post results was an overreaction to European bookings growth coming in at the low end of guidance and ignored the outperformance of EPS and revenues as well as the increased guidance. The firm reiterates a Buy rating and $155 target.
Holly-HOC reports Q2 EPS 23c vs. consensus of 65c
Reports Q2 revenue $1.74B vs. consensus of $2.1B.
Yingli Green Energy-YGE reports Q2 EPS 26c vs. consensus of 21c
Reports Q2 revenue $289.7M vs. consensus of $234.27M.
Yingli Green Energy-YGE sees FY08 revenue $1.05B-$1.11B vs. consensus of $1.03B
AMBAC Fin’l-ABK reports Q2 EPS $2.80 vs. consensus of (65c)
Reports Q2 revenue $1.33B vs. consensus of $446.1M. The company said results were boosted by a mark-to-market gain.
Freddie Mac-FRE reports Q2 EPS ($1.63) vs. consensus of (53c)
Reports Q2 revenue $1.69B vs. consensus of $2.18B.
Freddie Mac-FRE CEO says ‘committed’ to raising $5.5B in new capital
Microsoft-MSFT: Recommend buying shares ahead of potential buyback@UBSW
UBS believes MSFT could be preparing for a $20B stock buyback, one that would be completed over the next three months. The firm recommends buying the stock now as the company is unlikely to make an announcement until the buyback has been completed. UBS thinks MSFT shares could reach $40 in the next year.
Encore Acquisition-EAC reports Q2 adjusted EPS $1.65 vs. consensus of $1.59
Reports Q2 revenue $354.8M vs. consensus of $304.54M.
Jim Cramer’s “Mad Money”
Cramer went over his “rally playbook”. He said investors shouldn’t let their emotions prevent them from doing what is needed during big rallies. He said investors often let emotions sway them to hold on to their stocks — the exact opposite of what they should be doing. “The goal is to buy low and sell high,” he reminded viewers, “so when the market’s up big, it’s time to lock in some profits.” Cramer also reminded viewers that gains in the market are not really gains until the stocks are sold. He said the way to play big market rallies is to sell in increments during the rally. He said investors should not get swept up in the market euphoria, but rather scrutinize each and every stock in their portfolios to determine if it has earned the right to stay there at its new higher price. Cramer went on to say that when stocks get more expensive, they inherently get less desirable for investors. As a result, it makes sense to trim a portfolio during a rally. The next rules for playing a rally are to “raise cash” and “don’t buy.” Cramer explained that selling into strength is the only way to stockpile cash so investors can buy stocks back at lower prices later. He said rallies are the perfect time for investors to stop trading on margin. Cramer also said investors should refrain from buying stocks the day after a big rally. According to Cramer, the market will invariably retreat after big moves and only then is it a good time to buy. Cramer mentioned two types of stocks that he says must be sold into a rally. The first are stocks that have already had great runs. The second, are the losers. He said stocks that don’t perform well during a market rally often have underlying issues. Cramer warned that making too much money during a rally is also a problem. He cautioned that if investors’ portfolios are posting huge gains, it probably means that they’re taking on too much risk.
Fast Money position recap- First Moves: Jeff likes COST, Karen likes FLS, Tim likes FCX, Guy likes XOM.
Finerman’s Firm Is Short (IYR) (IJR) (MDY) (SPY) (IWM) (COF) (BBT) (XLF), Finerman’s Firm And Finerman Own (C) Leaps, Finerman Owns (GS), Finerman’s Firm Owns (MSFT) (PM) (RIG) (SUN) (TSO) (VLO) (WLP) (UNH) (AET), Finerman’s Firm Owns (ANF) Call Spreads, Finerman’s Firm And Finerman Own (FLS), Macke Owns (MSFT) (WMT) (COST) (DIS), Macke Is Short (TM), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Seymour Owns (AAPL) (CSCO) (INTC) (MER) (MSFT) (TSO) (EEM) (F) (SHLD), Seygem Asset Management Owns Gazprom OAO, Adami Owns (C) (AGU) (BTU) (INTC) (MSFT) (NUE).
Big market move to the upside as the market is reaching the critical level of 1290 on the S&P 500. The FRE news is hurting premarket futures but ABK earnings news was very positive with a markup in their CDO portfolio. Looks like commodity and energy plays are showing strength in premarket after the recent sharp selloff. Let’s see if the market can hold these levels for a push higher. Consolidation up here is good news, a sharp reversal would be negative. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great Luck and HappyTrading!
