Miles J. Stoner, @StockHollywood

Dallas, Texas

5.17.2010

Preview May 18

Milestone Financial Investments
Hang Seng is down r/g flat, our mkt could be same.
  1. Deer Consumer Products Inc (DEER:$8.60,00$0.90,0011.69%) raised its full-year outlook citing strong domestic and global sales and started a stock buyback program, sending its shares up as much as 12 percent. Should be a good short sell tomorrow. 
  2. Bill Gates bought another 8 million shares of Strategic Hotels & Resorts Inc. (BEE:$5.03,00$0.08,001.62%) for $36.8 million, boosting his holdings to about 12.2 million shares total. The company--a real-estate investment trust with properties in the U.S., Mexico and Europe--held a public offering of 40 million shares this week, hoping to raise proceeds for repaying debt. UPGRADE: Strategic Hotels & Resorts (BEE) upgraded by Robert W. Baird from Underperform to Neutral. I expect this one to follow close to the dow, so up then long, down then find bottom bounce, etc.
  3. Massey Energy Co. (MEE:$33.455,0$-3.545,0-9.58%) was the weakest coal stock Monday, recently down 10.4% to $33.14. Analysts said that the underperformance was likely due to the continued fallout from the April explosion that killed 29 workers at the company's Upper Big Branch mine in West Virginia.
  4. VIVUS Inc. (VVUS:$12.4399,$0.5999,5.07%) their drug Qnexa has been getting good results.
  5. Agilent (A:$34.19,00$0.33,000.97%) shares fell 2.2% at $33.43 in low volume. The company, which provides measurement products for electronics, life sciences and chemicals analysis, also forecast fiscal third-quarter revenue to rise 16% to 19% from the year-ago period. Analysts polled by FactSet Research currently expect a 19% earnings increase to $1.26 billion.
  6. Elsewhere in late trade, stock in MGM($13.32) Mirage Inc. rose 3% to $13.72, gaining ground after hedge fund firm Paulson & Co. said in a regulatory filing that it purchased 40 million shares of the casino operator during the first quarter.
  7. SINA (SINA:$34.85,00$-0.26,00-0.74%) : +1%; beats wtih Q1 results, revenue guidance straddles Street view. An open Tuesday around 34.90 to 35 looks possible. Buying interest kicked in around 34.89 initially, is maintaining a reversal pattern between the sessions following its evening earnings events.
  8. Spreadtrum Communications Inc. (SPRD:$8.18,00$-0.10,00-1.21%) shares rose more than 13% in after-hours trading after it reported first quarter GAAP net income pf 14 cents an ADS and a non-GAAP figure of 17 cents per ADS. A mean analyst estimate had put the earnings at 4 cents per ADS. First-quarter revenue rose to $52.1 million from $8.2 million a year earlier.
    The semiconductor company said it expects second-quarter revenue of $65-68 million with margin performance in line with the first quarter.
    Price: 9.25, Change: +1.07, Percent Change: +13.08
  9. QAD Inc. (QADI:$5.71,00$0.21,003.82%) expects to report a Q1 loss of $0.04 to $0.05 a share, from income of $0.04 a year earlier. The company had seen EPS of $0.03 in this year's Q1. The Street looks for $0.06. range 5.71 to 5.03. 
  10. Sinovac Biotech Ltd. (SVA:$4.50,00$0.09,002.04%), The NASDAQ OMX Group, Inc. (NDAQ:$19.65,00$0.01,000.05%) announced today the results of the semi-annual re-ranking of the NASDAQ Biotechnology Index(R) , which will become effective prior to market open on Monday, May 24, 2010. 
  11. TheStreet.com (TSCM:$3.26,00$-0.07,00-2.10%) ), Names Robert Walberg Chief Market Strategist, Premium Services. announced that its board of directors has declared the company's quarterly cash dividend on its common stock. The cash dividend of $0.025 per share of common stock will be payable on June 30, 2010, to all shareholders of record at the close of business on June 15, 2010.
  12. SkyPeople Fruit Juice, Inc. (SPU:$5.96,00$0.16,002.76%), earnings came out, dont' know if they were bad or good, or flat. 
  13. Kelly Services, Inc. (KELYA:$17.04,00$0.49,002.96%), earnings were bad, they are down in AH's to 16.18
  14. Perfect World Co. (PWRD:$24.71,00$-8.23,00-24.98%) plunged 25% to $24.71 after the company projected second-quarter revenue growth of 14% to 20% in local currency terms, which appeared weak compared with analysts' forecasts for revenue growth in dollar terms. The Chinese online game developer and operator said its first- quarter earnings rose 42% as it saw stronger revenue. Following the results, Brean Murray Carret lowered its stock-investment rating on the company to hold from buy. The firm said "slippage in the new game pipeline removes some catalysts from the stock."
  15. Resource Capital Corp. (RSO:$6.72,00$0.10,001.51%) plans to offer about $80 million of its common stock in an underwritten public offering. Shares are down more than 5% in after-hours trading.
  16. Fidelity National Information Services Inc (FIS:$28.88,00$-0.81,00-2.73%) on Monday pulled out because of disagreement over price, derailing what would have been the biggest buyout since the credit crisis, three sources familiar with the situation said, Value of their stock will go to previous levels of about 10 days ago, Resistance Level 1 - 26.34 area, Res lv.2 = 25.92. Short Sell Opportunity, in after hours its last trade was 26.62, low was 26 flat.
  17. Packaging company Pactiv Corp. (PTV:$28.44,00$4.47,0018.65%) could fetch as much as $4.4 billion in a private-equity sponsored leveraged buyout, analysts say.
  18. Carl Icahn has more than doubled his stake in biotechnology giant Genzyme Corp (GENZ:$50.87,00$0.44,000.87%) , where he is trying to get a board seat 
  19. DRN (bull real estate 3xfund) =  48.32, housing starts comes out tomorrow so this could get a boost, if mkt cooperates. 
  20. Other ETF's I like to keep eyes on are: FAZ/FAS -financial, TZA/TNA - small cap.
  21. Gates Foundation:
    • Increases Stake In Fedex /FDX 
    • New 1.5M Stake In Expedia/EXPE    
    • 15.6M Shares of Grupo Televisa 
    • 9.6M Shares of Caterpillar   
    • 10.2M Shares of Coca Cola
    • 7.1M Shares of BP, Had 4.6M At Dec 31  
  22. Soros Fund Recent buys:
    • Soros Fund Buys 16.4M Stake In Global Crossing >GLBC   
    • Soros Fund Us Stake In Suncor Energy To 8.7M Shrs Vs. 7.2M Shrs In 4Q
    • Soros Fund Ups Stake In Petrobras To 9.1M Shrs Vs. 7.7M Shrs In 4Q
  1. China Solar Plays:
    • JinkoSolar (JKS:$10.74,00$-0.27,00-2.45%) is one of a handful of vertically integrated, China-based solar companies working to ramp up their production. Others include: Trina, LDK Solar Co (LDK:$5.93,00$-0.15,00-2.47%) , Yingli Green Energy Holding Co Ltd (YGE:$9.28,00$-0.73,00-7.29%) and Suntech Power Holdings Co Ltd (STP:$10.06). 
    • LDK was up after hours.
UPSIDE MOVERS:
SINA: 34.55 to 35.70
SPRD: 8.07 to 9.28

DOWNSIDE MOVERS:
A: 34.39 to 33.19
QADI: 5.71 to 5.03
RSO: 6.72 to 6.33
APPA: 0.85 to 0.80
EZPW: 18.98 to 18.59
BA: 70.03 to 69.03


Political Agenda:
  • At the same time, the Senate rejected a measure that would have re-established a $400 billion cap on taxpayer assistance to Fannie Mae (FNM:...) and Freddie Mac (FRE:$1.3300,$-0.0400,-2.92%) . The Obama administration had removed a previous $400 billion cap on taxpayer exposure to Fannie Mae (FNM:...) and Freddie Mac (FRE:$1.3300,$-0.0400,-2.92%) in late 2009. The rejected measure was introduced by Sen. Mike Crapo, R-Idaho. It also would have required the federal budget to include the costs to U.S. taxpayers of Fannie Mae (FNM:...) and Freddie Mac (FRE:$1.3300,$-0.0400,-2.92%) .
  • The Senate also approved, by a vote of 94 to 0 an amendment to have the White House to evaluate whether any International Monetary Fund loan to countries with higher debt than their gross domestic product and certify to Congress whether the financial injections would be repaid.
  • Also on the agenda is a Senate measure that would seek to prohibit big banks from making speculative investments in stocks, bonds and derivatives. It would force big banks to sell hedge funds and private equity divisions.
  • The provision also seeks to prohibit investment banks from packaging mortgage securities, selling them, and then betting against them. The provision is based on a so-called Volcker Rule, named after former Federal Reserve Chairman Paul Volcker, who chairs President Barack Obama's economic advisory panel.