Archive for October 12th, 2007
Filed under: Rumors, Private equity, Dow Chemical (DOW), Options
 Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $1.42 to $46.17 after Bloomberg confirmed DOW canceled an analyst meeting. DOW has been the frequent subject of private-equity takeover chatter and the cancellation is refueling the conjecture. DOW call option volume of 27,544 contracts compares to put volume of 5,011 contracts. DOW November option implied volatility of 36 is above a level of 28 from twenty minutes ago, according to Track Data, indicating traders positioning themselves for a higher share price.
W.R. Grace (NYSE: GRA), supplier of specialty chemicals & industrial applications, is recently up $1.12 to $30.06 on unconfirmed LBO chatter. GRA call option volume of 9,562 contracts compares to put volume of 724 contracts. GRA October 30 straddle is at $2.00. GRA November option implied volatility of 61 is above its 26-week average of 51, according to Track Data, suggesting traders are positioning themselves for a higher share price.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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Filed under: Earnings reports, Conventions and conferences, Google (GOOG), Yahoo! (YHOO), eBay (EBAY), Intel (INTC), General Motors (GM), Johnson and Johnson (JNJ), Altria Group (MO), Novartis AG ADS (NVS), Merck and Co (MRK), Genentech Inc (DNA), Harley-Davidson (HOG)
.gif) Monday October 8
- PDUFA date for Johnson & Johnson’s (NYSE: JNJ) Doripenem for complicated intra-abdominal infection, complicated urinary tract infection
- PDUFA date for Bristol Myers Squibb Company (NYSE: BMY)/Elan Corporation’s (NYSE: ELN) Tysabri (Natalizumab), a treatment for moderately to severely active Crohn’s Disease
- PDUFA date for Merck & Co Inc’s (NYSE: MRK) Januvia (Sitagliptin Phosphate) an adjunct to diet and exercise and as add-on therapy to a sulfonylurea in non-insulin dependent diabetes melliltus (NIDDM)/Type 2 Diabetes; add-on therapy to the combination of a sulfonylurea plus metformin in non-insulin depedent diabetes mellitus (NIDDM)Type 2 diabetes
Tuesday October 9
- PDUFA date for YY (NYSE: NVS) Tasigna (Nilotinib) for chronic myleoid leukemia/acute lymphoblastic leukemia
- Johnson & Johnson to report Q3 earnings; conference call at 8:30am
- Yahoo! Inc (NASDAQ: YHOO) to report Q3 earnings; conference call at 5pm
- Intel Corporation (NASDAQ: INTC) to report Q3 earnings; conference call at 5:30pm
Wednesday October 10
- PDUFA date for Merck’s Isentress (Raltegravir), formerly MK-0518, for treatment for Human Immunodeficiency Virus (HIV) infection
- Altria Group Inc (NYSE: MO) to report Q3 earnings; conference call at 9am
- eBay Inc (NASDAQ: EBAY) to report Q3 earnings; conference call at 5pm
Thursday October 11
Friday October 12
- Harley Davidson Inc (NYSE: HOG) to report Q3 earnings; conference call at 9am
- PDUFA date for Cardiome Pharma Corporation’s (NASDAQ: CRME) IV Vernakalant, an intravenous formulation of an investigational drug being evaluated for the acute conversion of atrial fibrillation
- PDUFA date for Indevus Pharmaceuticals Inc’s (NASDAQ: IDEV) Valstar, for the therapy of bacillus Calmette-Guerin - refractory carcinoma in situ of the urinary bladder in patients for whom immediate cystectomy would be associated with unacceptable morbidity or mortality.
- PDUFA date for DOR BioPharma Inc’s (OTC: DORB) orBec (Oral Beclomethasone Dipropionate) for Gastrointestinal Graft-Vs-Host Disease
- PDUFA date for Bristol Myers Squibb’s Ixabepilone; monotherapy to treat patients with metastatic or locally advanced breast cancer after failure of chemotherapies
- PDUFA date for Genentech Inc’s (NYSE: DNA)/Roche Holdings Ltd’s (OTC: RHHBY) Herceptin (Trastuzumab); in combination with taxotere as first-line treatment of HER-2 positive metastatic breast cancer
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Filed under: Bad news, Products and services, Consumer experience, China, Scandals, Walt Disney (DIS), Penney (J.C.) (JCP)
 We have another toy recall on our hands today. This one involves one of our most beloved icons, Winnie the Pooh.
Today’s recall involves around 90,000 items, 70,400 of which were imported by J.C. Penney Company (NYSE: JCP) and feature the beloved Walt Disney (NYSE: DIS) character Winnie the Pooh. The culprit is, once again, excessive levels of lead paints. The actual products J.C. Penney was forced to recall were Winnie the Pooh playsets and decorative ornaments with a horse-theme, as well as art kits made in Taiwan and Vietnam.
The good news is that many retailers like J.C. Penney are doing their best to try to keep these toxic toys from landing in the hands of children. Earlier this summer, the company decided to hire an independent laboratory to run tests on all of its painted toys. These independent evaluations, which started in August, are credited with catching today’s recalled toys.
Continue reading Proactive J.C. Penney (JCP) turns up lead levels in Winnie the Pooh playsets
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Filed under: Bad news, Rumors, Rants and raves, Berkshire Hathaway (BRK.A), China, Middle East, PetroChina Co Ltd ADR (PTR), Politics, Oil, Headline news
 According to a report in Bloomberg, oil is selling in record territory on worries that Turkey may invade Northern Iraq. Uncertainty is never a good thing when it comes to business, and when it’s related to oil prices it rocks the world, and potentially the world’s economy.
- Turkish Prime Minister Tayyip Erdogan told reporters his country would pursue the Kurdistan Workers Party, or PKK, regardless of diplomatic costs, according to an Agence France-Presse report. Northern Iraq holds some of its largest oil fields, including Kirkuk, the source of much of Iraq’s exports.
- “If they start shelling across the border, the price is going to go up,” said Addison Armstrong, director of market research at TFS Energy LLC in Stamford, Connecticut. “When there is tension in the world, oil gets bid up.”
This unpredictability in the region has kept oil prices up even though demand is not as strong as speculators anticipated during its rise over the last few years. For me, this is an unfortunate irony as I read this news after returning from a breakfast meeting where I told an associate, “Oil will be $60 a barrel before it is $100, unless war breaks out somewhere.” This is very sad to me, because just the possibilty of war creates a rise in oil prices that I envision causes more pain for those at the bottom of the economic strata barely getting by now.
Continue reading Oil hits $84 on Turkish threats; PetroChina (PTR) up despite Buffett’s sell-off
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Filed under: Rants and raves, General Electric (GE), News Corp’B’ (NWS), Media World, Presidential elections
Why is it that whenever Ann Coulter says something idiotic, racist or just loony that the media acts surprised? Coulter, like Bill O’Reilly, has a long, well-documented track record for spouting nonsense. Check out the Media Matters Web site for a list.
Now the media world is in a tizzy over Coulter’s statements to CNBC’s The Big Idea with Donny Deutsch
that Christians “just want the Jews to be perfected.” Deutsch responded by saying he found her comments “personally offensive.”
Yeah, those comments were offensive but why did CNBC even give her the chance to make them on Deutsch’s show and why did the General Electric (NYSE: GE) network invite her back to speak with another talking head, Larry Kudlow? The answer is, of course, ratings. News Corp (NYSE: NWS)’s Fox Business Network launches Monday, and CNBC wants people to talk about something besides the looming competition with Fox. Booking Coulter was a cheap publicity stunt.
The outrage being voiced by Deutsch and other CNBC talking heads is phony. I have no sympathy for TV hosts who invite on guests such as Coulter with a history of outrageous statements being “outraged” when she says something outrageous. What makes matters worse is that every time Coulter says or does something shocking, the media acts surprised, as if it’s something new.
Coulter is like crack to TV talk shows. They just can’t seem to get enough of the articulate, attractive and bonkers pundit, and neither can her legion of fans. Between her books and speaking fees, she no doubt earns a handsome living, since people never know what crazy thing she’s going to say.
To be clear, people have every right to be mad about the things Coulter says. They should be equally upset at the mainstream media, including Deutsch, for continuing to give her a platform for her shtick without giving her much of a fight. This is particularly scary as the presidential election ramps up and political passions are at their height.
Continue reading Media World: CNBC’s Ann Coulter outrage is phony
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Filed under: Earnings reports, Forecasts, Competitive strategy, Coca-Cola (KO), PepsiCo (PEP)
 After seeing PepsiCo Inc. (NYSE: PEP) beat analyst estimates earlier this week for its third quarter, there are going to be some big expectations for its main rival, Coca Cola Co. (NYSE: KO) when it reports its third quarter numbers next Wednesday.
The stock has been impressing analysts at Citigroup lately. Just yesterday the broker lifted its price target on the stock to $67 a share (the stock is currently trading at $57.50), citing improved fundamentals in its Japanese businesses. The broker currently has a buy rating on the company.
Analysts are expecting the soft drink giant to come through with earnings of 68 cents per share for its most recent quarter, and based on the company’s solid earnings history, I would not bet against it this time around. The company last reported earnings back on July 17, posting EPS of 85 cents and easily beating Q2 analysts’ estimates by 3 cents. In fact, if you look back at the company’s history you will find that it has beat estimates for each of its last seventeen quarters. That’s a pretty nice run.
Continue reading Coca Cola (KO) third quarter earnings preview
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Filed under: Good news, General Electric (GE), Technical Analysis, Stocks to Buy
 Among the most sought after goals of medical technology research is the development of minimally invasive methods for the determination of internal disorders. An outfit in Yoqneam, Israel is a leader in the field.
Given Imaging (NASDAQ: GIVN) manufactures diagnostic products for the visualization and detection of disorders of the gastrointestinal tract. Its principal product is a wireless imaging system that features a “PillCam” video capsule that is ingested by the patient. As the pill passes through the G.I. tract, associated system electronics interpret and record the video signals it transmits. The company also offers a dissolvable capsule system that enables physicians to determine whether there are obstructions or strictures in the gastrointestinal tract. General Electric (NYSE: GE) is a major competitor.
The stock has been a steady gainer over the past two weeks, rising on analyst predictions of further product regulatory approvals and speculation regarding the firm’s position as a takeover candidate. Also, there has been word that “PillCam” esophageal applications will be covered by National Government Services, the Medicare Part B Carrier serving more than six million individuals in New York, New Jersey, Kentucky and Indiana. Shares are advancing through a positive trading channel. The price is currently consolidating at the base of that channel, suggesting the potential for a turn back toward the top.
Brokers recommend the issue with two “buys,” one “hold” and one “sell.” Analysts expect a 34 percent average annual growth rate, through the next five years. The GIVN Sales Growth rate (19.83%) and EPS Growth rate (-0.02 to +0.09 yr/yr) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 25 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $18.96 and $32.80. A stop-loss of $25.95 looks good here. Note that the firm is next expected to release quarterly results on, or about, November 1.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.
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Filed under: Industry, Canada, Stocks to Buy
 Its abundance of resources and location on the Great Lakes have made Ontario an economic powerhouse. Canada’s capital, Ottawa can be found there, as well as its largest city, Toronto, which is also Canada’s financial hub. Seven of Ontario’s eight largest companies are financial institutions, and Toronto is also the home of one of the largest stock exchanges in the world. When the Motley Fool took a look at stock investment opportunities in Ontario this past June, three of the companies they focused on were financial institutions: Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC) and Toronto-Dominion Bank (NYSE: TD). Considering the credit crunch and the weakness of the U.S. dollar, I thought it might be interesting to see how those companies are faring now.
The Royal Bank of Canada, also known as RBC Financial Group, is Canada’s largest financial institution. It has 1,300 domestic locations and offices in 30 countries. In September, RBC’s Gord Nixon won Canada’s Outstanding CEO of the Year award for 2007. More recently, RBC announced the acquisition of a Caribbean bank, and it was one of four Canadian banks affected by restructuring at VISA. With RBC’s five-year earnings per share growth rate of 26.5% (better than the S&P 500), the consensus recommendation of analysts surveyed by Thomson Financial is to buy RBC, despite missing earnings expectations for the past two quarters. RBC’s share price is near an all-time high on the NYSE, closing Thursday at $57.09 on the NYSE. RBC will release its next quarterly report on November 30.
Continue reading Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)
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Filed under: Newsletters, Boeing Co (BA), Bargain stocks, Stocks to Buy
The recent decline in Boeing (NYSE: BA) should be viewed as a “rare opportunity” to buy the stock on sale, according to BizRadio host, Daniel Frishberg in his The MoneyMan Report.
The advisor notes, “Since 9/11, the aerospace & defense industry has been among the strongest sectors. Rarely have there been sell offs that give us a great entry point.”
Recently, however, Boeing announced a delay in their 787 Dreamliner by 6 months. Frishberg suggests, “We believe this is temporary and the stock decline was an overreaction. We rarely get to buy a company of this caliber on sale.”
The advisor explains, “We believe after a fall of 11% from its recent high, Boeing is a buy. The long-term growth prospects for this dominant company are excellent and we like this company for several reasons.”
He observes, “With Boeing, we get a company that is benefiting from the growth in Asia, the weak dollar, and defense spending continuing to increase.” In addition, he adds, Boeing just bounced off of its 200-day moving average, which many technicians watch closely.
Each day, Steven Halpern’s TheStockAdvisors.com features the latest stock picks and investment ideas from the nation’s leading financial newsletter advisors.
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Filed under: Insiders, Google (GOOG)
 With Google, Inc. (NASDAQ: GOOG) shares at an all-time high (giving the search leader a ridiculous $200 billion market cap), the triumvirate leadership of founders Larry Page and Sergey Brin and CEO Eric Schmidt have set their collective eyes on yet another jumbo jet to cruise around the world in.
This situation sounds like 1999-era dot-com exuberance madness, but the market has pushed Google to insane levels and the company has billions of cash on hand for anything it needs, as in acquisitions, global computer server farms and huge jets.
In addition to the new jet purchased under the auspices of a company names H211, LLC, the three Google leader have scored an exclusive agreement for airport access at Moffett Field, including the rights for four planes in total. Moffett Field is very close to Google’s Mountain View, California headquarters.
The current staple of planes owned and operated by Google’s seemingly-eccentric leadership trio includes two Gulfstream Vs, a Boeing 767, and the new Boeing 757. Are other Silicon Valley CEOs jealous? Most likely, yes. But, at least the Google folks are buying ‘green’ credits to offset the jet fuel they’ll be expunging. As a Google shareholder, do you think the company needs a small jet army like this?
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