Filed under: Major movement, Earnings reports, Wal-Mart (WMT), Walgreen Co (WAG), Target Corp. (TGT), JPMorgan Chase (JPM), Family Dollar Stores (FDO), Technical Analysis, Bear Stearns Cos (BSC)

It all started with JPMorgan Chase (NYSE: JPM) upping its bid for Bear Stearns (NYSE: BSC) from $2 to $10 a share. Then, we had some good news from the ailing housing sector. Not that anyone is calling a bottom in the sector yet, but February’s existing-home sales actually increased and came in above expectations.

The result? Wall Street is rising, with the Dow industrials climbing over 200 points (211 as I write this). The broader S&P 500 is not shying from the rally either, soaring 1.8%, and the Nasdaq composite is up a cool 2.75%.

It is no surprise then to find that Wal-Mart Stores Inc. (NYSE: WMT) actually set a new 52-week high today, climbing to $54.15 before settling back a bit at $53.76, or 1% higher. While no specific news is driving Wal-Mart at the moment, its stock has seen nice price movement lately, as many have bet the discount retailer would fare well in a slowing economy / recession.

Theflyonthewall.com believes that the breakout is technical, saying that after the $51.50-$52 level served as a “major overhead resistance area for 3 years and was a major support area for the 2 years prior,” WMT could break out if it climbed above that level. Not only that, but “breakouts of this type, which have developed over a long period of dull range trading, often produce extreme and persistent movement in the direction of the breakout.” Meaning, that if the stock doesn’t revert back, we could see WMT shares gain strong upward momentum.

While perhaps not breaching 52-week records, other retailers are performing well today too. Continued falling commodity prices have eased inflation concerns, putting retailers back in favor. Target (NYSE: TGT) shares are climbing nearly 2.5%; Walgreen (NYSE: WAG), which has reported a 5% earnings growth, is seeing its shares rise over 5.3%; and Family Dollar (NYSE: FDO), another discount store, is soaring over 6%.

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Filed under: Newsletters, Mutual funds

“Give muni bonds a good look.” says Richard Moroney in Dow Theory Forecast, a leading “blue chip” newsletter that has been publishing for over five decades, who offers a trio of Vanguard funds for investors seeking safety and income.

The advisor explains, “Municipal bonds are showing signs of life, presenting investors with an intriguing opportunity.” Here, he review the situation and offers some favorite investment vehicles.

“Muni bonds usually yield less than Treasurys because interest payments from municipals are exempt from federal income taxes.

“But in today’s topsy turvy market, intermediate-term municipal bonds now yield around 3.7%, versus 3.6% for 10-year Treasurys. A tax-free yield of 3.7% is the equivalent of a taxable yield of 5.5%, assuming a 33% federal tax bracket.

“Uncertainties about the economy and credit concerns have weighed on bonds, lowering prices and raising yields. Hedge funds have also dumped muni bonds in an attempt to cover trading strategies gone sour.

Continue reading In the Vanguard: Get more yield from munis

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Filed under: Newsletters, Mutual funds

“Give muni bonds a good look.” says Richard Moroney in Dow Theory Forecast, a leading “blue chip” newsletter that has been publishing for over five decades, who offers a trio of Vanguard funds for investors seeking safety and income.

The advisor explains, “Municipal bonds are showing signs of life, presenting investors with an intriguing opportunity.” Here, he review the situation and offers some favorite investment vehicles.

“Muni bonds usually yield less than Treasurys because interest payments from municipals are exempt from federal income taxes.

“But in today’s topsy turvy market, intermediate-term municipal bonds now yield around 3.7%, versus 3.6% for 10-year Treasurys. A tax-free yield of 3.7% is the equivalent of a taxable yield of 5.5%, assuming a 33% federal tax bracket.

“Uncertainties about the economy and credit concerns have weighed on bonds, lowering prices and raising yields. Hedge funds have also dumped muni bonds in an attempt to cover trading strategies gone sour.

Continue reading In the Vanguard: Get more yield from munis

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Filed under: Products and services, Wal-Mart (WMT)

Wal-Mart Stores, Inc. (NYSE: WMT) indicated last last week that it would begin selling milk under its own private label brand (”Great Value”) that is not sourced from cows that have been treated with growth hormones. There are already several brands of milk that have this features (generally, the “organic” brands), but this is the first time I’ve seen a Wal-Mart store brand make a major move like this.

Growth hormones used in cows are administered to increase milk production from those cows, but critics argue that those cows are less healthy and are, in turn, more likely to be treated with antibiotics. It’s been widely reported that most normal supermarket milk is sourced from cows that have been treated with artificial hormones, although without national testing and a complete statistical sampling, it’s hard to tell which have been treated and which have not been. That is, unless you buy a brand that specifically states “from cows not treated with hormones.”

Preventcancer.com even says that most European countries and Canada ban importation of U.S. milk for this very reason. So my question to Wal-Mart is this: is the new “Great Value” milk choice being offered nationally in all U.S. stores? If so, where is the list of your suppliers? It’s hard to think that the world’s largest retailer could just instantly start offering hormone-free milk to its stores without turning over the natural dairy industry on its head in overnight fashion. The retailer says it is bowing to consumer demand here, which is good. Still — are there enough dairy suppliers that don’t treat their herds with artificial hormones to cater to Wal-Mart’s needs?

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Filed under: Earnings reports, Technical Analysis, Stocks to Buy

AAR Corporation (NYSE: AIR) provides products and services to the aviation, aerospace and defense industries. The company’s aviation supply chain unit sells engine and airframe parts, repairs avionics systems and provides inventory management programs. Other AAR divisions offer airframe maintenance, aircraft modifications, cargo handling systems, and commercial jet sales/leasing services. The US government accounts for about one-third of sales.

The company pleased investors last week, when it reported Q3 EPS of 47 cents and revenues of $376.6 million. The Street had been expecting 46 cents and $337.5 million. Both the earnings and sales totals represented company records.

Continue reading AAR Corporation (AIR): Price moving in bullish ‘flag’

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Filed under: Products and services, Wal-Mart (WMT)

Wal-Mart Stores, Inc. (NYSE: WMT) indicated last last week that it would begin selling milk under its own private label brand (”Great Value”) that is not sourced from cows that have been treated with growth hormones. There are already several brands of milk that have this features (generally, the “organic” brands), but this is the first time I’ve seen a Wal-Mart store brand make a major move like this.

Growth hormones used in cows are administered to increase milk production from those cows, but critics argue that those cows are less healthy and are, in turn, more likely to be treated with antibiotics. It’s been widely reported that most normal supermarket milk is sourced from cows that have been treated with artificial hormones, although without national testing and a complete statistical sampling, it’s hard to tell which have been treated and which have not been. That is, unless you buy a brand that specifically states “from cows not treated with hormones.”

Preventcancer.com even says that most European countries and Canada ban importation of U.S. milk for this very reason. So my question to Wal-Mart is this: is the new “Great Value” milk choice being offered nationally in all U.S. stores? If so, where is the list of your suppliers? It’s hard to think that the world’s largest retailer could just instantly start offering hormone-free milk to its stores without turning over the natural dairy industry on its head in overnight fashion. The retailer says it is bowing to consumer demand here, which is good. Still — are there enough dairy suppliers that don’t treat their herds with artificial hormones to cater to Wal-Mart’s needs?

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Filed under: Earnings reports, Technical Analysis, Stocks to Buy

AAR Corporation (NYSE: AIR) provides products and services to the aviation, aerospace and defense industries. The company’s aviation supply chain unit sells engine and airframe parts, repairs avionics systems and provides inventory management programs. Other AAR divisions offer airframe maintenance, aircraft modifications, cargo handling systems, and commercial jet sales/leasing services. The US government accounts for about one-third of sales.

The company pleased investors last week, when it reported Q3 EPS of 47 cents and revenues of $376.6 million. The Street had been expecting 46 cents and $337.5 million. Both the earnings and sales totals represented company records.

Continue reading AAR Corporation (AIR): Price moving in bullish ‘flag’

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Filed under: Microsoft (MSFT), Sony Corp ADR (SNE), Activision Inc (ATVI)

I don’t have to tell you how utterly, unbelievably, unequivocally popular Activision’s (NASDAQ: ATVI) Guitar Hero game is. It’s currently selling tons of units on the Nintendo (OTC: NTDOY) Wii, the Microsoft (NASDAQ: MSFT) Xbox 360 and the Sony (NYSE: SNE) PlayStation platforms. It’s too tough for me to play, but legions of others are having a grand old time living out their rock-and-roll fantasies.

I’ve been wondering for a while now if the DS would ever get a Guitar Hero game. Let’s be honest — all of us know several kids and/or adults who own one of these handhelds; they’re like everywhere (and, yes, I want one too, to be frank, although I hate small game devices). I was thinking that Activision was leaving a lot of money on the table by not programming a version for Nintendo’s handheld. But then I thought that a DS version would be like an insult to the image of the franchise — how could a developer possibly capture the feel of the console iterations on the little DS? Didn’t make sense to me, so I figured we’d never see a DS version.

Continue reading Activision bringing ‘Guitar Hero’ to the DS — I’m not so sure about this …

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Filed under: Analyst initiations

MOST NOTEWORTHY: Greatbatch and Blue Coat Systems were today’s noteworthy initiations:

• Piper assumed coverage of Greatbatch (NYSE: GB) with a Neutral rating and $19.50 target as they believe acquisition-related expenses will weigh on near-term bottom-line results.
• Collins Stewart believes shares of Blue Coat Systems (NASDAQ: BCSI) are highly attractive at current levels. The firm started shares with a Buy rating and $29 target.

OTHER INITIATIONS:

• Ultra Petroleum (NYSE: UPL) was initiated at Credit Suisse with an Outperform rating and $82 target.
• Lehman assumed Dana Holding (NYSE: DAN) with an Overweight rating and $15 target.

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Filed under: Microsoft (MSFT), Sony Corp ADR (SNE), Activision Inc (ATVI)

I don’t have to tell you how utterly, unbelievably, unequivocally popular Activision’s (NASDAQ: ATVI) Guitar Hero game is. It’s currently selling tons of units on the Nintendo (OTC: NTDOY) Wii, the Microsoft (NASDAQ: MSFT) Xbox 360 and the Sony (NYSE: SNE) PlayStation platforms. It’s too tough for me to play, but legions of others are having a grand old time living out their rock-and-roll fantasies.

I’ve been wondering for a while now if the DS would ever get a Guitar Hero game. Let’s be honest — all of us know several kids and/or adults who own one of these handhelds; they’re like everywhere (and, yes, I want one too, to be frank, although I hate small game devices). I was thinking that Activision was leaving a lot of money on the table by not programming a version for Nintendo’s handheld. But then I thought that a DS version would be like an insult to the image of the franchise — how could a developer possibly capture the feel of the console iterations on the little DS? Didn’t make sense to me, so I figured we’d never see a DS version.

Continue reading Activision bringing ‘Guitar Hero’ to the DS — I’m not so sure about this …

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