Also, whatever profits banks garner because of the Fed’s position doesn’t mean that it will be enough help to the ailing companies. And there’s always the possibility they could be forced to go back to investors to raise fresh capital., One thing’s for sure: It will probably be easier to see which banks are the biggest losers.
Research in Motion takes 10% of U.S. cell phone sales-Reuters
According to Strategy Analytics, Research in Motion’s (RIMM) BlackBerry device took 10% of U.S. cell phone sales in Q2. The firm says RIM saw huge success with enterprise and consumer handsets with total mobile phone shipments rose to 41.9M from 39.8M in Q208.
Rights to Erbitux drug at center of Bristol-Myers takeover of ImClone-WSJ
Bristol-Myers Squibb (BMY) has said that it will pay $4.5B to buy the 83% of ImClone Systems (IMCL) that it doesn’t already own. But there’s a catch and it involves billions in futures sales. Key is who has the rights to Erbitux, a cancer treatment drug. Imclone says it does. Bristol Myers says a new version of the drug may be a competing product and if so it says it’s entitled to rights. For now, any conclusion is inclusive. “My read is that the contract language is nebulous,” says Eric Schmidt with Cowen & Co. He adds that there is “clearly room for (Bristol) to claim one thing and (ImClone) the other.” The dispute could take years to conclude
U.S. equity futures continue to point to a lower open
The futures continue to point to a slightly lower open as oil holds onto its slight gains. The conflict between Georgia and Russia, and a bounce after last week’s drop in the price of crude, are reasons being attributed to oil’s strength. Also there’s news of lower gasoline prices. A national survey now shows that the average price of a gallon of gasoline nationwide is $3.85, down 15 cents from two weeks ago. While energy prices remain high the Democrats continue to push for an additional stimulus program. But Treasury Secretary Paulson said in a speech over the weekend that he is taking a wait and see approach. Paulson said he’s concerned about driving the budget deficit higher.
Apple video upgrade for the Mac may be in the works-Silicon Valley Insider
According to a source at the Silicon Valley Insider, Apple’s (AAPL) product transition mentioned in a recent conference call refers to quicktime encoding/decoding chips built into the Mac computers.
Genentech-DNA: Believe company may be worth $124 per share@BERN
Bernstein thinks Genentech may be worth $124 per share, including synergies with Roche. The firm set their target for Genentech at $101, and they maintained their Outperform rating on the shares.
J Crew-JCG: Comfortable with Q2 estimate of 33c@WEDB
Wedbush believes that summer merchandise was well received and they are getting positive early reads on fall merchandise. Wedbush reiterates their Buy rating and $50 target
Nvidia-NVDA: Expect in-line Q2 with recently lowered guidance@WEDB
Wedbush believes NVDA’s Q3 guidance on Tuesday could disappoint due to headwinds in desktop GPU and higher inventory. Wedbush trims their target to $16 from $18
JA Solar-JASO: Believe JASO made progress during quarter@CSTI
Collins Stewart believes JASO made good progress on its capacity expansion efforts in the quarter and will achieve its goal of ramping annual capacity production to 500MW by year end. The firm did lower its price target to $23 from $32 on uncertain 2009 demand due to potential revised solar policy in Spain. Shares are Buy rated.
Monsanto-MON valuation attractive, reiterate Overweight@MSCO
Morgan Stanley said at MON’s current valuation, investors are getting their pipeline for free. The firm values MON’s existing business at $110/share and the pipeline at $60.
Airlines: Price drop in fuel a positive, revenue risk is to the downside@UBSW
UBS said the drop in fuel prices benefits their EPS estimates but said revenue risk is to the downside given optimistic revenue growth estimates. The firm said DAL appears most attractive while LCC is expensive relative to its historic valuation.
Enzon, Inc.-ENZN trading halted, pending news
Agrium-AGU reaches agreement on Egyptian Nitrogen facility
Agrium announced that, through two wholly-owned subsidiaries has entered into an agreement with MISR Oil Processing Company, S.A.E of Egypt, whereby MOPCO will acquire the EAgrium project, and EAgrium shareholders will obtain an equity interest in the combined entity. Agrium will own a 26 percent interest in the combined entity, which includes the recently completed 675,000 tonne urea MOPCO facility which is expected to commence commercial production by the start of the fourth quarter of 2008. The combined entity intends to construct two additional urea trains on the MOPCO site, which will increase the total annual capacity to approximately two million tonnes of urea. Agrium’s share of the annual production would be 175,000 tonnes of urea until the expansion is complete in 2011, after which it would increase to approximately 525,000 tonnes annually.
Airlines may be profitable in 2009@MSCO
Morgan Stanley said the drop in oil is a “game changing” event and could lead to the airline industry being profitable in 2009. The firm notes LCC and UAUA as the main beneficiaries.
Alpha Natural-ANR shareholder value much higher than CLF bid@FBRC
Friedman Billings recommends ANR shareholders reject the takeover bid by CLF and recommends investors buy ANR on its own merits. The firm said ANR has sought-after met coal reserves, diversified met coal products, and quality thermal coal assets, among other attributes.
Merrill Lynch-MER: Believe company’s liquidity is solid@BOFA
After Merrill disclosed its liquidity and operational risk figures, Banc of America thinks the company’s Tier 1 capital position is solid, and the firm maintained their Buy rating.
Solar: Lowering 2009 global solar module estimate@UBSW
UBS now expects 2009 industry solar module prices to decline 20% YoY vs. -14% given the likely reduced market size in Spain. The firm upgraded ENER to Buy from Neutral and downgraded SPWR to Neutral from Buy.
SunPower-SPWR downgraded to Neutral from Buy@UBSW
Target to $80 from $90.
LDK Solar-LDK initiated with a Buy, target $50@THNK
Semiconductors: Use pullbacks to build positions@DBAB
Deutsche Bank believes macro concerns are largely reflected in the group and recommends buying strong secular growers with low valuations/turnaround stories on pullbacks. The firm recommends Buy rated INTC, ISIL, ITLN, MPWR, NSM, POWI, and TXN.
Intel-INTC says next generation chips to carry Intel core name
Intel Corporation announced today that desktop processors based on the company’s upcoming new microarchitecturewill be formally branded “Intel(R) Core(TM) processor.” The first products in this new family of processors, including an “Extreme Edition” version, will carry an “i7? identifier and will be formally branded as “Intel(R) Core(TM) i7 processor.” This is the first of several new identifiers to come as different products launch over the next year.
Cephalon-CEPH: Possesses an emerging pipeline of recently launched products@AMTR
Strong fundamentals continue to be demonstrated by the company’s strong management, which has also largely been able to avoid revenue pitfalls. Heading into the 2H08 and 2009, AMTR remains bullish on the stock and anticipates the company’s story will be one of execution. Maintain Buy rating
The government is releasing crop production data at 8:30am Tue, which is expected to show first yield and production estimates for this year’s corn and soybean crops. Corn and soybean futures fell today on expectations that the report will show a bumper crop.
Fast Money position recap- Macke Owns (WMT) (COST) (DIS) (MSFT) (EMC); Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE); Karabell Owns (FMCN) (AAPL) (AGU) (GOOG) (JPM) (GLD) (SLB); Finerman’s Firm Is Short (IYR) (IJR) (MDY) (SPY) (IWM) (XLF) (BBT) (COF); Finerman’s Firm And Finerman Own (C) Leaps; Finerman Owns (GS); Finerman’s Firm Owns (MSFT) (SUN) (TSO) (VLO); Finerman’s Firm Owns (ANF) And (ANF) Call Spreads; Gartman Is Short (TAP) (TM) (MA); Gartman Owns (AFFY) (FLO) (PLL) (IBM) (HOG) (SDS); Gartman Owns (ANDE) And Is Short (ADM); Gartman Owns (QQQQ) And Is Short (TLT); CIBC Gartman Index Owns Copper, Aluminum, Wheat, Corn, Soybean, Natural Gas, 10yr Canadian Bond, Australian Dollar; CIBC Gartman Index Is Short Crude Oil, Sugar, Euro.
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