Miles J. Stoner, @StockHollywood

Dallas, Texas

5.23.2010

Preview May 24

Milestone Financial Investments 
Predictions
  1. TOKYO, May 24 (Reuters) - Nikkei futures traded in Singapore opened up 0.7 percent on Monday after U.S. stocks snapped a three-day losing streak on Friday, with the Dow Jones Industrial average gaining 1.3 percent.
  2. Hang Seng is up .66%
  1.  BIG PLAY: Novell Inc. (NOVL:$6.00,00$0.09,001.52%) on Thursday has earnings report. The Wall Street Journal reported on May 19, 2010 that as many as 20 bidders are interested in acquiring Novell Inc., which has put itself up for sale and is accepting bids this week. Wall Street added that most of the companies expected to bid are private equity firms. The report said it was unlikely that a technology company would bid for all of Novell.
    •  5.91 - 6.05 after hours range on Friday. 
    • I will play this until earnings depending on how it moves, but I want the big reward from the company being bought out and getting a good amount for its stock. 
    • Longs, any buy around 5.9 area would be good, although I saw it drop Friday's open to 5.77.
    • Shorts, risky as it has earnings and momentum could carry it, but if it pops into 6.15 area sellers will come in and could be a great spot to short.
  2. LJ International Inc. (JADE:$2.45,00$-0.01,00-0.41%), AGR indicating higher accounting and governance risk than 80% of the other companies. Earnings expections was .04cents, they exceeded with .07cents.
    • 2.45 - 2.86 after hours range on Friday.
    • This looks like a Earnings Momentum/Earnings Momentum Pop Short play.
    • No long or short values will be given to this stock as it is risky and should only be scalped. 
  3.  Orthovita Inc (VITA:$3.12,00$-0.08,00-2.50%) crossed below its 52-week low of $3.18 on 9:32 AM ET on May 21, 2010.
    • 3.12 - 3.58 after hours range Friday.
    • No news driving this so probably After-Hours Decliner strategy in play here. 
  4.  Immunogen Inc. (IMGN:$8.61,00$-0.10,00-1.15%) Presents at Morgan Joseph 2010 Best Ideas Conference, Jun-09-2010, and a combination with another company and their drug has shrunk the lumps in breast cancer patients, 9 out of 40 women with advanced breast cancer's lumps shrunk. 
    • 8.61. - 7.93 downside movement in after hours friday, the above news came out after this decline.
    • Good news movement strategy, which means people will take likely to this good news and move the stock, minute to minute plays though, long v. short battle.
  5. Host Hotels & Resorts, Inc. (HST:$14.08,00$0.72,005.39%) was flat after hours, but if our economic situation could come back some I really beleive the hotels will follow and this is a good place to put your money as far as that goes. 
    • Just put this on your watch-list, if you need to play I would say Large Position Scalping would do just fine either short or long.
  6.  Borders Group Inc. (BGP:$2.2400,$0.0100,0.45%) on Friday said financier Bennett LeBow is investing $25 million in the struggling bookseller and becoming its chairman.
    • 2.24 - 2.41 after hours range Friday.
    • Good News Gain Strategy
  7. Toll Brothers Inc. (TOL:$20.69,00$0.38,001.87%) on Tuesday is expected to report quarterly losses of 23 cents a share. The high-end home builder's CEO last Monday announced his retirement.
    •  20.31 - 20.69 after hours trading range friday
    • After Hours decline would mean it would decline more along with Lousy News Loss ie CEO retired strategy.
  8. Ford Motor (F:$11.26,00$0.46,004.26%) broke ground for a new China plant in September 2009
    • 11.26 - 11.55 after hours trading range
    • Good News Gain combined with After Hour Gain will make for a good large position scalp or long. 
  9. Washington Mutual, Inc. (WAMUQ:$0.1250,$0.0230,22.55%) Files Revised Plan of Reorganization & Disclosure Statement with Support of FDIC and JPMorgan Chase.
    • Preferred and common equity securities previously issued by WMI will be canceled.
    • Keep an eye on this I don't know which way it will go tomorrow, could be huge gain or go to 0.0000.
  10. Penny Stock Plays: CEMI, SFMI, TADF.
  11. ATandT (T:$24.85,$-.11, -.44%) Faces $1 Million Fine For Decade Of Slow Repairs State utility regulators have fined AT&T more than $1 million for failing to comply with landline service standards for nearly a decade.
    • Short set up good here, Lousy News Loss, Dip, Long strategy.
Four Companies Ripe For Take-Over:
  1. Cowen Group Inc. (COWN:$4.57,00$0.13,002.93%) : The entire investment banking and asset management landscape has been altered by the implosion of Bear Stearns and Lehman Brothers. As a result of the extinction of these players and the restrictions placed on the big financials, boutique investment banks like Cowen Group (COWN:$4.57,00$0.13,002.93%) have been able to gain market share and pick up some of the best talent on the Street.
  2. GeoEye Inc. (GEOY:$30.18,00$0.27,000.90%) : This company has a market cap of $692 million, and is a great buyout or merger target. This provider of satellite-generated earth imagery and image processing services is on the radar of the big aerospace and defense companies looking to gain a foothold in this profitable and fast-growing market.
  3. HearUSA (EAR:$0.9690,$-0.0010,-0.10%) : As health care reforms take root, there will consolidation of many of the service providers that will no longer be able to survive as stand alone entities. HearUSA is a micro-cap that provides hearing care to patients primarily through 180 company-owned hearing care centers -- offering a range of hearing aids with an emphasis on the latest digital technology. Ultimately, HearUSA will sell out to one of its partners such as the mega-giant Kaiser Permanente or to a diagnostic service provider looking to expand into hearing aid services. This would be a company such as an imaging service provider Alliance Healthcare Services Inc. (AIQ:$5.24,00$0.03,000.58%) that eventually may look to expand beyond diagnostic imaging or the $2.9 billion market cap, Concord Medical Services Holding Ltd. that may look to expand into the U.S. -- and that operates radiotherapy and diagnostic imaging centers in China. Read "Buffett Moves Berkshire Out of Health Care."
  4. McGraw-Hill Cos (MHP:$28.41,00$0.34,001.21%) .: The McGraw-Hill Companies (MHP:$28.41,00$0.34,001.21%) were a big name in the days before digital publishing took off, famous for the now Bloomberg-owned Business Week, its educational group and the Standard & Poor's brand. In years past, McGraw-Hill (MHP:$28.41,00$0.34,001.21%) was often an acquisition target by the big international publishing houses looking to gain access to the U.S. market. Of course, all those offers were rebuffed as the leader of McGraw Hill (MHP:$28.41,00$0.34,001.21%) wanted to remain independent and follow a strategy of organic growth. Now that the patriarch has died, and his son, Harold "Terry" McGraw III, is truly in control, the best way to deal with lawsuits and SEC action against S&P's rating agency and a fading print business is to sell out to a company such as the British-based Pearson PLC (PSO:$13.71,00$0.19,001.41%) -- famous for its Penguin publishing brand, the Economist and the Financial Times -- and lead by my hero, the Texan-born, Marjorie Scardino. Of course, don't be surprised if a private equity firm such as Apollo Investment Corp. (AINV:$10.49,00$0.32,003.15%) with a break-up plan or turn-around strategy comes in and buys the formerly great McGraw Hill -- hoping to return the company to its historical level of profitability and quality.
A Look Ahead: Major Corporate & Economic Events, May 24 to May 28:  
 
MONDAY, May 24
Extended-Hours Earnings: ADPT, ANGN, ATAI, CPB, JRJC, CMM, CEDU, CCU, DCI, FREE, GAIN, GES, IGLD, LFT, PVH, TISA, VSNT, YGE.
Economic Data: 10 a.m. Existing Home Sales.
TUESDAY, May 25
Extended-Hours Earnings: AZO, CBRL, DSW, DY, FLO, HEI, HTX, ITRN, IXYS, MDT, NZ, PHHM, PTNR, SLRY, SAFM, SINO, SXE, TIVO (TIVO:$9.03,00$0.19,002.15%) , TSL, TTIL, WH.
Economic Data: 9 a.m. Case-Shiller 20-City Index; 10 a.m. Consumer Confidence.
 
WEDNESDAY, May 26
Extended-Hours Earnings: AFCE, AEO, AINV, AVGO, BMO, BPHX, BWS, CHRM, CDXS, DSX, DBRN, FRED, HOKU (HOKU:$3.00,00$0.17,006.01%) , JMBA, JAS, LTXC, MBT, NBG, NTAP, ROSG, SMTC, SIGM, SOLF, SCMR, SYNO, TLVT, TOL, TTPA, PAY, ZLC.
Economic Data: 8:30 a.m. Durable Orders; 10 a.m. New Home Sales; 10:30 a.m. Crude Inventories.
 
THURSDAY, May 27
Extended-Hours Earnings: TDSC, BIG, BRLI, BCSI, BGP, CM, CCM, CONN, COST, DLIA, DMND, ESL, GCO, HNZ, JCG, JTX, LAVA, MNRO, NOVL, OVTI, QADI, RY, SEAC, SIG, TMRK, TIF, UPI, XETA.
Economic Data: 8:30 a.m. Initial Claims; GDP Deflator.
 
FRIDAY, May 28
Extended Hours Earnings: NTZ, MENT, QSII, VIP.
Economic Data: 8:30 a.m. Personal Income/Spending; PCE Prices; 9:45 a.m. Chicago PMI; 9:55 a.m. U of Michigan Consumer Sentiment