Miles J. Stoner, @StockHollywood

Dallas, Texas

6.07.2010

Preview June 8



Intra-Day Plays: (Longs & Shorts)
  1. DepoMed (DEPO:$3.03,00$-0.29,00-8.73%) firmed in evening trade after reporting its New Drug Application (NDA) for DM-1796 was accepted by the FDA for the management of postherpetic neuralgia (PHN), or pain after shingles.
    • 3.03 to 3.53
    • Long, it has held steady the last few days at 3.5 before it took that dip and the good news (above) came out and pushed it to where it has been at, I'm Long, but some may want to get out even, scared by the dip, others may push it higher and have a good run, look for a short into the 4's. 
  2. A123 Systems (AONE:$8.01,00$-0.52,00-6.10%) advanced in after-hours trade after announcing a production deal with Navistar.
    • 8.03 to 9.25 
    • Major Long, This should run passed 9.25, its after hours high, and possible test $10, if fails test, think about short, or buy the dip and long it.  I like this one alot!
  3.  New York & Co. (NWY:$3.28,00$-0.16,00-4.65%) said it now projects its Q2 loss per share to widen from its previous expectations. It said comparable store sales are expected to be approximately flat.
    • 3.02 to 3.28
    • Short, down trending for a while, but could get a bounce from bargain plays. Short otherwise. Could make a run upwards on some crazy reverse news reaction.
  4. Staples, Inc. (SPLS:$20.66,00$-0.4825,-2.28%) approved a dividend of 0.09 per share
    • 20.50 to 21.12
    • Mixed, espect this to be flat, with plays on either side of the coin, Long > Short. 
  5. Hospira (HSP:$50.11,00$-0.72,00-1.42%) and DURECT (DRRX:$2.42,00$-0.12,00-4.72%) announced that the companies have entered into a licensing agreement to develop and market DURECT's (DRRX:$2.42,00$-0.12,00-4.72%) POSIDUR
    • HSP: 50.10 to 50.78
    • DRRX: 2.80 to 2.82 
    • HSP followed along with the dow today and took a hit, but this news gave a pop, which should continue after this strong agreement.
    • DRRX set to explode off this news!
  6. Hooker Furniture (HOFT:$14.11,00$0.25,001.80%) reports Q1 sales of $51.4 mln, down from $52.1 mln in the year ago quarter. Net income was $0.10 per share, vs. a year ago loss of $0.04 per share.
    • 14.40 to 14.10
    • Short, but It will stick to its after hours ranges pretty closely I believe, so you can play it long and short.
  7. Altera (ALTR:$23.2675,$-0.3900,-1.65%) shares are lately dipping into the red in night trade, retreating from an early evening high of 23.65 down to fresh lows at 23.02. The stock had been holding a floor at 23.25, but a thin-volume match recently dumped it deeper into the red. The top bid/ask stands at 23.01/23.25, suggesting the stock could continue to struggle in the red in the near-term.
    • 23.65 to 23.02 
    • Long, this stock gains some momentum and hit 24.5 again very soon.
  8. Pep Boys-Manny Moe & Jack's (PBY:$10.74,00$-0.59,00-5.21%) fiscal first-quarter profit increased 9.5% as the auto-parts and service retailer reported higher sales.
    • 10.75 to 10.50
    • Long, even though I think this news was priced in already and the broader mkt kept it down. 
  9. FedEx Corp. (FDX:$76.52,00$-2.85,00-3.59%) said its board raised the quarterly dividend to 12 cents a share from 11 cents. The dividend will be paid July 1 to stockholders of record at the close of business on June 17.
    • 77.53 to 76.25
    • Mixed, I'm not big on dividend plays, but could get a little pop, I'd short that pop.
  10. Amazon.com (AMZN:$122.01,00$-0.76,00-0.62%) closed down 0.6%, reversing the 2.5% pre-market gain seen after the company was reportedly upgraded to Conviction Buy from Buy at Goldman. The firm reportedly raised its price target on Amazon shares to $190 from $180. 
    •  121.83 to 124.23
    •  Depending on broad mkt I'd long this based on upgrade, but be leary due to mkt conditions and the Euro, which gained alot of ground tonight.
  11. Shares of Cascade Corp. (CASC:$27.54,00$-2.29,00-7.68%) were flat in after-hours trading after the company reported fiscal first quarter earnings that moved the company to a profit in the quarter.
    • 27.54 to 29.48 
    • Long, finally profit following this downtrend of a chart, watch for dips to buy longs, and pops for shorts.
  12. Washington Mutual Inc's (WAMUQ:$0.1839,$0.0469,34.23%) effort to exit bankruptcy encountered a setback on Thursday when the judge in the case ordered the company to talk further with shareholders about their requests for documents. 
    • This stock has gone from .12 to .18 in a week based on the fact that shareholders wont get anything, but the judge is taking a second look to say no! good luck.  Scalp it if anything.
  13. Flow International Corp (FLOW:$2.18,00$-0.23,00-9.54%) fell 10.04% to $2.42 at 1:36 PM ET on June 04, 2010.
    • 2.18 to 2.25, 2.42 was previous high.
    • Mixed, downtrending is killing me, but could pop, just keep an eye on volume bars.
  14.  Retail Ventures (RVI:$7.97,00$-0.34,00-4.09%) were flat in after-hours trading after the company reported income from continuing operations for the quarter ended May 1.
    •  7.97 to 8.57
    • Short around 8.5, long around 8.
  15. ConAgra Foods Inc (CAG:$24.00,00$-0.21,00-0.87%) has agreed to sell its Gilroy Foods & Flavors dehydrated and vegetable product business to Singapore'sOlam International Ltd for $250 million, as it aims to focus on its core brands. 
    •  23.99 to 24.47
    • Long, making money off this sale and focusing on core brands is good management, should move upwards tomorrow.
  16. VIVUS Inc. (VVUS:$11.94,00$-0.41,00-3.32%) who we also like released positive Phase III data from The Revive Diabetes study for product Avanafil. Nevertheless, their shares dropped $.41 today. 
    • 11.93 to 12.27
    • Long, Took a beating today and is a cheap buy off positive results, I'd get this early and long it.
  17. Delcath's (DCTH:$10.83,00$-3.82,00-26.08%) PHP clinical trials have focused on a certain melanoma spread to the liver.
    • 10.69 to 11.33
    • Probably some of the worst advice I've ever gotten from www.wsmco.com to buy this a few days ago considering its down almost 30%, but an insider working for them whom Doug from wsmco.com had on the show seems to think that the trial was great! go figure. Cheap though, could go long and possible make some money.
Swing/Buy & Hold Plays/Long:
  1. According to the filing, Peltz's Trian funds now own 6.78% of Legg Mason's (LM:$30.09,00$0.11,000.37%) outstanding shares, which would make them the company's No. 2 shareholder behind only BlackRock Inc. (BLK:$157.50,00$-1.99,00-1.25%) .

Relevant News Section:
  • Shares of Apple Inc. (AAPL:...) edged higher late Monday, with the company in the spotlight as investors considered the latest version of its iPhone device.
  • A late move took already soggy stocks sharply lower, a second day for steep declines as currency plays continue to dominate stock action. The euro hit a fresh four-year low, further reflection of nerves surrounding European debt woes. Crude edges lower after choppy trading, while gold moves back within $2 of a record high.
Stocks In Partial Focus:
  • Bob Evans Farms (BOBE:$26.48,00$-0.53,00-1.96%) is expected to report fourth-quarter earnings of 63 cents a share, according to analysts surveyed by Thomson Reuters.
  • Mobile Telesystems (MBT:$18.83,00$-0.43,00-2.23%) should report earnings of 36 cents a share for the first quarter of 2010.
     
  • Dollar General (DG:$29.23,00$-0.81,00-2.70%) will likely report earnings of 34 cents a share for the first quarter of 2010.
     
  • Talbots is expected to report quarterly earnings of 15 cents a share in the first quarter of 2010.
     
  • NCI Building Systems (NCS:$10.0600,$-0.5400,-5.09%) is expected to note a loss of 54 cents a share in the first quarter of 2010.
     
  • After the closing bell Thursday, Pep Boys reported first-quarter net income of $12 million, or 23 cents a share, compared with $10.9 million, or 21 cents a share, in the same quarter last year. The quarterly results included a $6.2 million gain from bond repurchases. Revenue rose 2.7% to $510 million.
     
  • United Airlines (UAUA:$20.2975,$-0.7850,-3.72%) said late Monday that May traffic rose 7.4% to 10.26 billion revenue passenger miles from 9.54 billion a year ago. A revenue passenger mile is one passenger flown one mile. Capacity for May increased 3.3% to 12.31 billion available seats.
     
  • Gannett Co. (GCI:$14.29,00$0.56,004.08%) shares rose 4.1% on Monday after the newspaper publisher and broadcaster said it was "comfortable" with second-quarter earnings at the higher end of analysts' estimates of 47 to 58 cents a share. In a statement,
  • Gannett (GCI:$14.29,00$0.56,004.08%) Chief Financial Officer Gracia Martore said the company sees "improving revenue trends" across all of its businesses.
     
  • FedEx Corp. (FDX:$76.52,00$-2.85,00-3.59%) said its board raised the quarterly dividend to 12 cents a share from 11 cents. The dividend will be paid July 1 to stockholders of record at the close of business on June 17.
     
  • New York & Co. (NWY:$3.28,00$-0.16,00-4.65%) lowered its second-quarter outlook on Monday, noting its losses are likely to widen from the forecast provided on May 20 based on same-store sales over the past three weeks. The specialty apparel chain had reported a loss of 8 cents a share in the second quarter last year.
     
  • A natural gas pipeline that exploded in Texas Monday, killing at least three, was owned by Enterprise Products Partners LP (EPD:...) , according to Reuters. The company is managed by its general partner, Enterprise Products GP LLC, which is owned by Enterprise GP Holdings LP (EPE:$43.119999,$-1.280003,-2.88%) .