Miles J. Stoner, @StockHollywood

Dallas, Texas

6.09.2010

Preview June 10

  1. BP($29.20, -15.8%, -$5.4775)
    •  BP could capture nearly 15,900 barrels (667,800 gallons/2.53 million liters) for the 24-hour period of today, but they have alot of catching up to do.
    • U.S. government scientists have estimated the leak to range from 12,000 barrels (504,000 gallons/1.9 million liters) to 19,000 barrels (798,000 gallons/3 million liters) a day, with one estimate as high as 25,000 barrels (1.05 million gallons/3.97 million liters) a day.
    • Talks of PTR 107.8 buying BP are in the air. 
    • Short, and looking for that to continue even though after hours it got a 30c raise, but could have a major rebound, watching to see which way this one goes, Long strength at $29 today.
  2. Shuffle Master (SHFL:$7.96,00$0.18,002.31%) gained in night trade on the back of better-than-expected Q2 results.
    •  Long at 8, but if it gaps higher I'd short it, major support and owners at 8.
  3. Men's Wearhouse (MW:$18.67,00$-0.15,00-0.80%) firmed higher in evening trade after reporting Q1 results up over year ago levels.
    • Short the pop/high level, which is upper 19's.
  4.  Analogic Corporation (ALOG:$43.90,00$0.04,000.09%) approved a dividend of 0.10 per share and have approved a new CEO.
    • Long, been trending up should continue, $45short, $43short, anything under I'd long, should be steady uptrend continue.
  5. American Eagle Outfitters (AEO:$12.21,00$0.14,001.16%) says its board approved a 10% hike in the quarterly dividend to 11 cents a share.
    • Long at 12, Short at 12.5, keep eye though could continue uptrend all day based on dividend buyers and holders, so I'm more long than short would love push through 12.5.
  6. Immunomedics (IMMU:$3.13,00$-0.07,00-2.19%) announced that pretargeted therapy with TF2, a bispecific antibody against carcinoembryonic antigen (CEA) and a small peptide, delayed tumor growth and prolonged survival in an animal model of human colonic cancer.
    • Long, but this pop may have been so large that it could be a better short.
  7. Legg Mason Inc. (LM:$30.03,00$-0.44,00-1.44%) ( LM),CEO of company bot alot of shares,  sending the company's shares up more than 3% in recent trading on the New York Stock Exchange. This was on 6/7/10. 
    • Long, if market cooperates this should get a nice run up. Long 29.5, Short 31.00.
  8. Seagate (STX:$14.49,00$0.08,000.56%), Ascendis Selects Softscape for Talent Management Partnership.
    • Early pop, short around 15, or this Long news could keep it rolling, I say short the pop. 
  9. SanDisk Corp. (SNDK:$42.75,00$-0.275,0-0.64%) announced at the AGM held on June 2, 2010, the shareholders elected Dr. Eli Harari to company's Board of Directors, they were up $4 after hours, which is why they are here. 
    • Short, this pop isn't gonna hold, look to short at 44.5-45.
  10. (CSCO $22.78, -0.76%, -$.175) Introduces Smart Storage to Help Small Businesses Address Growing Storage Needs. Showcases in Cisco Pavilion at Expo 2010 Shanghai China.
    • 22.78 to 23.34 after hours range
    • Long, should have nice uptrend all day. entry around 23 area.
  11. TheStreet.com (TSCM:$2.855,0$0.065,02.33%) approved a dividend of 0.025 per share. Jim Cramer Jim Cramer Insider Buys  which was about ~100k shares @ 2.83x3.23. I think because they want the dividend. 
    • Long, this may not get a pop tomorrow, but should move upward steadily for few days. 
  12. Escalade Inc (ESCA:$4.32,00$-0.33,00-7.10%) insider and CEO bot over 3400 shares @ 4.35.
    • Long, up pop, not alot of volume.
  13. Ciena Corp. (CIEN:$13.95,00$0.1075,0.78%) jumped 7% on a strong quarterly earnings report to lead telecommunications stocks broadly higher Wednesday.
    • The company's healthy results also helped other suppliers of optical equipment for telecommunications networks. JDS Uniphase Corp. (JDSU:$10.29,00$0.06,000.59%) gained almost 6%, Corning Inc. (GLW:$17.29,00$0.24,001.41%) added 3.5%.
    • If market permits, I expect a nice pop upwards. Long 13.75, Short 15+ for CIEN, the others could follow in the footsteps.
  14. Tellabs Inc. (TLAB:$6.63,00$0.26,004.08%), This company was up because of earnings of other telecommunications companies, only normal for it to come down after hours.
    • 6.63 to 6.37 down  
    • Beautiful Short, early short down to 6.15 area, watch for support, cover areas are also good long areas. 
  15. The Gulf of Mexico oil spill will have many lasting and painful effects, but the scuttling of the Apache Corp. (APA:$88.84,00$-0.05,00-0.06%) purchase of rival oil and gas company Mariner Energy Inc. (ME:$21.40,00$-0.01,00-0.05%) doesn't look to be among them.
    • APA - Short the pop, Long the dips.
    • ME - mixed, watch for a bit then see if its long or short, leaning towards short.
  16. Oracle (ORCL:$21.54,00$-0.22,00-1.01%) said it would further cut the size of the two companies' combined workforce. The company said it expects additional costs of between $675 million and $825 million, the bulk of which will require an outlay of cash ($550 million to $650 million will be related to severance costs). The cuts will hit employees primarily in Europe and Asia.
    • Long, but initially it will be a short pop, think that will happen fast, then long it. Long, 21.55, Short 22. Maybe short, people don't like hearing layoffs.
  17. Microsoft Corp. (MSFT:...) is working combine resources with Yahoo Inc. (YHOO:$14.69,00$-0.10,00-0.68%) in order to have its technology powering Yahoo search results in time for the holiday season, a company executive said Wednesday, though a delay due to last-minute fine tuning is possible.
    • Long YHOO to me they are a 15+ stock. Long at 14 area
  18. Kingsway Financial Services Inc. (KFS:$1.6700,$0.0300,1.83%), Kingsway Fincl: Tender Offer Price/Unit Is C$17.50 Cash.
    • Long, but not alotta volume. Like the company if you have some cash you want to swing with, I'd suggest this one.
  19. Palm Inc. (PALM:$5.675,.009%, $.005) said it and other defendants have agreed to settle a possible class-action lawsuit filed last month in connection with Hewlett-Packard Co.'s (HPQ:$45.41,00$-0.47,00-1.02%) planned acquisition of the smartphone maker for about $1 billion in cash.
    •  Depending on the terms of settlement could be long PALM or HPQ.
  20. Del Monte Foods Co. (DLM:$14.67,00$0.37,002.59%), Del Monte is expected to report earnings of 22 cents a share.
    • Watch, blown up from earnings, possible short.
  21. Lululemon Athletica Inc. (LULU:$39.10,00$0.05,000.13%), Lululemon will likely report earnings of 21 cents a share.
    •  Watch, low from earnings, possibly long.
  22. Viacom Inc. (VIA:$36.52, 1.64%, $.59) announced its first-ever quarterly dividend and resumed its stock buyback plan a year after the media giant pledged future gains for shareholders in the midst of a global financial crisis and economic downturn that rattled the company.
    • Kind of follows the dow, Long.
June 9th Wrap Up:
-NYSE down 36.41 (0.6%) to 6,559.71
-DJIA down 40.7 (0.4%) to 9,899
-S&P 500 down 6.3 (0.6%) to 1,056
-Nasdaq down 11.7 (0.5%) to 2,159
GLOBAL SENTIMENT
Nikkei down 1%
Hang Seng up 0.7%
FTSE-100 up 0.5%
UPSIDE MOVERS
(+) SNIC upgraded.
(+) BIDU initiated at Buy rating.
(+) JPM inks China JV.
(+) POT upgraded.
(+) TTIL sold for $3 per share.
(+) TSL inks supply pact.
(+) TTWO continues evening gain that followed upbeat results.
(+) TXN continues evening gain that followed raised outlook.
(+) PIP gets positive government decision on anthrax vaccine.
(+) CIEN misses with revenue, guides in line.
DOWNSIDE MOVERS
(-) TEVA lower after choppy day followed upgrade.
(-) BP continues to make new 52-week lows as Gulf of Mexico spill issues remain.
(-) NOK down as Reuters report says company could issue profit warning.
(-) CHTP says FDA requests study delay, asks for more detail.
(-) HGSI reports on phase 2 trial of multiple myeloma treatment.
MARKET DIRECTION
Stocks end lower. Wall Street saw today's early rally fade, feeling the tug of energy shares, a renewed drop for the euro, and general disappointment in a Federal Reserve Beige Book report that revealed continued very modest growth and some concern among bankers for European debt spillover.
Earlier, Fed Chief Ben Bernanke continued his upbeat tour this week, suggesting that any contagion from Europe in the U.S. would be minimal. Reports of upbeat Chinese export data offered early global market support.
Bernanke told a House budget panel that any fallout from Europe's debt trouble would likely have only a modest impact on U.S. economic growth, so long as financial markets continue to heal. He also said that international efforts will continue to help support financial stability. Bernanke already fed a market recovery with upbeat growth comments in an interview late Monday.
Stocks also pared gains absent fresh encouraging news in the latest Beige Book report.
The U.S. economy continued to grow modestly all across the nation in the past two months, the Federal Reserve reported Wednesday.
Some bankers interviewed for the report were concerned about the impact of the European debt crisis on U.S. financial and business conditions.
 Market is up and down and more volatile, but it seems its in correlation with the Euro, so keep an eye on the Euro and what it is doing to help you determine if you want to go long or short on a specific stock, it shouldn't be your number 1 factor, but should be factored into the equation.
  • U.S. stocks finished lower on Wednesday as Wall Street reversed course late in the session, as it has done each day this week. "We have an indecisive marketplace. We have changed direction every day for the last three days at 3 p.m.," said Art Hogan, chief market strategist at Jefferies & Co. "The only other major catalyst was the euro dipped below the psychological $1.20 level," Hogan said. The Dow Jones Industrial Average fell 40.73 points to 9,899.25. The S&P 500 Index declined 6.35 points to 1,055.65. The Nasdaq Composite Index was off 11.72 points at 2,158.85.
--------------------------------------------------------------------------------Thank You, Miles