Stem Cells,Evan Byah, College, The Web
– This is an interesting take on the election and a trade
– As awful as it sounds, unless you are going for a specific profession (med, law etc), he has a point
– Men and women has different web habits… surprise?
Wachovia (WB) insiders are buying shares on a consistent basis. When you couple this with recent news, it seems to be a sign of a general trend in financials.
Lanty L. Smith a director of Wachovia Corp. bought 40,000 shares of common stock, according to a Securities and Exchange Commission filing Friday. This follows purchases earlier by other insiders including smith himself.
In a Form 4 filed with the SEC, reported buying the shares last Thursday for $34.76 apiece for a total purchase of $1.39 million.
This follows recent announcements that for the first time in years, net insider purchases of stock outpaced sellers. Usually, due to option received by insiders, net sales are more than purchases.
While it is hard for us looking in to quantify the recent effects of the dramatic rate cuts on financials by the Fed, if we follow the insider buying or interest in them by “value investors”, we get a good picture. Berkshire Hathaway’s (BRK.A) Warren Buffett and Wilbur Ross are getting interested, Leucadia (LUK) is buying up shares of AmeriCredit (ACF), Citigroup (C) has seen insider buying and Bank of America (BAC) has got what will be seen as perhaps the bargain of the year in Countrywide (CFC) and Richard Pzena is buying shares of Citi and Freddie Mac (FRE).
Financials (XLF) seemed to have bottomed Jan. 18th it is no coincidence the famed bottom dwellers above are circling.
Disclosure (“none” means no position):Long WB, C
Today Borders (BGP) opens it first new “concept” store in Waters Place shopping plaza on Lohr Road in Pittsfield Township, Michigan.
What exactly the concept will look like is still a mystery.
“You can expect to see a completely different store compared to existing Borders stores,” said company spokeswoman Anne Roman recently. “Embracing technology – as George (CEO George Jones)talked about in his early days – is clearly evident throughout as we have new digital options as promised.”
Borders’ plans to launch it’s own e-commerce Web site, which is expected to go live by April and the company is terminating its current affiliation with Amazon.com. Borders site is expected to play a crucial role in connecting Borders’ bricks-and-mortar stores to its online presence. As for the “how’s” of the plan, that has not been disclosed yet either. For those interested, Borders has been testing the site and taking customer feedback at beta.bordersstores.com.
After a quick glance at the site, it looks like a cross between Apple’s (AAPL) iTunes site and Amazon’s own. That is not a bad thing. It has a unique navigation feature for scrolling that is very user friendly and personalized list based on user interests.
If any readers go to the new store today, please email or post comments on the experience.
Disclosure (“none” means no position):None but getting close
Upgrades
AXIS Capital (AXS)- Wachovia Mkt Perform » Outperform
NeuroMetrix (NURO)- Punk, Ziegel & Co Sell » Mkt Perform
Buffalo Wild Wings (BWLD)- Dougherty & Company Neutral » Buy
Douglas Emmett (DEI)- Stifel Nicolaus Hold » Buy
Anadigics (ANAD)- Needham & Co Buy » Strong Buy
Forward Air (FWRD)- William Blair Mkt Perform » Outperform
Qwest (Q)- Deutsche Securities Hold » Buy
SLM Corp (SLM)- Friedman Billings Mkt Perform » Outperform
Hecla Mining (HL)- BMO Capital Markets Market Perform » Outperform
Ensco (ESV)- Credit Suisse Underperform » Neutral
Diamond Offshore (DO)- JP Morgan Underweight » Neutral
Dynegy (DYN)- Citigroup Hold » Buy
HSBC Holdings (HBC)- UBS Neutral » Buy
Valeant Pharmaceuticals (VRX)- Bear Stearns Underperform » Peer Perform
Cephalon (CEPH )- Broadpoint Capital Buy » Strong Buy
Schering-Plough (SGP)- Banc of America Sec Neutral » Buy
Downgrades
Sovereign Banc (SOV)- Sandler O’Neill Hold » Sell
IndyMac Banc (IMB)- RBC Capital Mkts Sector Perform » Underperform
Bankunited Fin (BKUNA)- RBC Capital Mkts Sector Perform » Underperform
Sierra Pacific (SRP)- Wachovia Outperform » Mkt Perform
EastGroup (EGP)- Robert W. Baird Outperform » Neutral
U.S. Concrete (RMIX)- BB&T Capital Mkts Buy » Hold
Masco (MAS)- Wachovia Outperform » Mkt Perform
O’Reilly Auto (ORLY)- BMO Capital Markets Outperform » Market Perform
Gibraltar Industries (ROCK)- Wachovia Outperform » Mkt Perform
Nxstage Medical (NXTM)- Piper Jaffray Buy » Neutral
T. Rowe Price (TROW)- Credit Suisse Outperform » Neutral
Dick’s Sporting Goods (DKS)- Susquehanna Financial Positive » Neutral
Boardwalk Pipeline (BWP)- RBC Capital Mkts Outperform » Sector Perform
American Reprographics (ARP)- JP Morgan Overweight » Neutral
Brasil Telecom Part (BRP)- JP Morgan Overweight » Neutral
Brown-Forman (BF.B)- JP Morgan Neutral » Underweight
Blue Nile (NILE)- Citigroup Buy » Hold
Morgan Stanley (MS)- Oppenheimer Outperform » Perform
Disclosure (“none” means no position):
Thursday’s Picks
Jeff Macke likes Cypress Semiconductor (CY) $23.70
Guy Adami prefers Merck (MRK) $47.57
Karen Finerman recommends BJ Services (BJS) $24.48 as a natural gas play
Pete Najarian says short Lehman (LEH) $55.31
Wednesday’s Results
Jeff Macke likes Wal-Mart (WMT) $50.25 Close $50.66 GAIN
Guy Adami recommends Intel (INTC) $20.90 Close $21.21 GAIN
Karen Finerman prefers Microsoft (MSFT) $28.34 Close $28.96 GAIN
Pete Najarian thinks Cisco (CSCO) $23.43 is a buy as a wireless infrastructure play. Close $24.04 GAIN
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 4-1
Jeff Macke= 9-8
Tim Seymore= 2-4
Guy Adami= 10-11
Pete Najarian= 10-8
Karen Finerman= 9-9-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
Disclosure (“none” means no position):
In an SEC filing moments ago, Sears Holdings (SHLD) Chairman Eddie Lampert disclosed he purchased an additional 1,224,997 shares of AutoNation (AN) on Feb. 11th and 12th at prices between $15.18 and $15.55 through his RBS Partners hedge fund.
This brings Lampert and his affiliates ownership to 59,931,415 or 33% of the 180 million outstanding shares.
Disclosure (“none” means no position):None
Here are some details from the stimulus plan just signed by Bush.
Most people who pay federal income taxes will get up to $600 for individuals, or as much as $1,200 for married couples, with an additional $300 per child. The amounts begin to phase out for incomes above $75,000 for individuals and $150,000 for married couples who file jointly. The amount of the credit “is phased out at a rate of 5% of adjusted gross income beginning at $75,000 ($150,000 in the case of joint returns).”
Essentially, 5% of the dollar amount above the applicable cap, about $50 for each $1,000 above the cap.
An example:
A married couple with no kids and AGI for 2007 of $140,000 typically would get $1,200. A married couple with the same income, with three kids under 17, would get $2.100. A married couple with the same income, with 6 kids, would get $3,000.
For a phase out scenario:
You’re married and file jointly, have no kids, and your adjusted gross income for 2007 was $170,000. In this case, you would receive $200 back. Why? Your income was $20,000 over the cap. Multiply $50 times 20. That’s $1,000. Subtract that from the $1200 per couple and what is left is the $200
Many low-income Americans who pay little or no federal income tax will get something, too. To get a payment this year, you have to file a tax return for 2007.
Clemens, Ackman, Cullen, Tobacco
– Me think he doth protest too much
– I have a hard time disagreeing with a guy who called this perfectly.
– James, why do you hurt me so? I would say by Sherwin before someone else does
– Has anyone ever been forced to light up? Whatever happened to the whole “free will” thing?
The former trainer of Roger Clemens, Brian McNamee claimed in front of congress moments ago to have syringes from his injections of Roger Clemens of HGH and steroids that, according to him, after chemical analysis will prove his assertions
Disclosure (“none” means no position):
Has anyone at Sprint (S) called execs at Home Depot (HD) to inquire into their regret level at listening to Ralph Whitworth?
Whitworth, who owns a roughly 2% stake in Sprint through his investment company, Relational Investors, has been sparring with Sprint. Last fall, he threatened a proxy fight if management did not make vast improvements.
He wants the company to:
1- Spinoff of its long-distance unit or
2- Alter its $5 billion plans for a WiMax high-speed wireless network.
Those of us with memories longer than 6 months can remember Whitworth’s last “value destruction” efforts at Home Depot. There he ousted Bob Nardelli and prodded management to sell the supply unit and try to take on massive debt to repurchase huge blocks of shares. First talked about early last year, here is a brief refresher of the events. shares have shed 30% since then. Thank Ralph shareholders.
Is Sprint really considering adding Whitworth?
CEO Dan Hesse seems to be off to a good start. Already he has:
1- Announced a plan to shed 4,000 jobs.
2- The formal shift of its headquarters from Reston, Va., where Nextel was based, to Overland Park, Kan., Sprint’s headquarters, seems to be in the works. Finally creating one company
3- Discussed options for Sprint’s WiMax unit, including a spinoff of that business or merging it with Clearwire (CLWR).
4- Based on personal experience, the customer service issue that have almost destroyed the company have improved
The last thing Sprint ought to do is cave to avoid a public fight with Whitworth. What they ought to do is welcome it and point out his recent history. That ought to be more than enough to end the discussion.
Disclosure (“none” means no position):None
The latest Fed auction illustrates a continued downward interest rate trend
Here are the results from the prior auction:
On February 11, 2008, the Federal Reserve conducted an auction of $30 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 3.010 percent
Total propositions submitted: $58.400 billion
Total propositions accepted: $30.000 billion
Bid/cover ratio: 1.95
Number of bidders: 66
Banks like Wachovia (WB), Citigrpoup (C), Bank of America (BAC) and Wells Fargo (WFC) are now getting money from the Fed and at almost 1/2 the 30 yr interest rates on the mortgages they can make with it. While they may be taking write-downs on the CDO portfolios they hold, when they report earnings for the current quarter, I have a feeling that people are going to be surprised by the results from normal operations.
The recent plunge in interest rates has not seem a corresponding drop in load rates from the bank. Simply put, this activity essentially allows banks to virtually print money.
Disclosure (“none” means no position): Long Citigroup and Wachovia, None
Upgrades
Veeco Instruments (VECO)- AmTech Research Neutral » Buy
Lubrizol (LZ)- KeyBanc Capital Mkts Buy » Aggressive Buy
Medcath (MDTH)- Wachovia Mkt Perform » Outperform
Carrizo Oil & Gas (CRZO)- Sun Trust Rbsn Humphrey Neutral » Buy
Time Warner (TWX)- UBS Neutral » Buy
Schlumberger (SLB)- Bear Stearns Peer Perform » Outperform
Liberty Media Capital (LCAPA)- Lehman Brothers Equal-weight » Overweight
Eldorado Gold (EGO)- Credit Suisse Neutral » Outperform
Weatherford (WFT)- UBS Neutral » Buy
Downgrades
Hypercom (HYC)- Morgan Keegan Outperform » Mkt Perform
Brandywine Realty (BDN)- Stifel Nicolaus Hold » Sell
MBIA Inc (MBI)- Piper Jaffray Buy » Neutral
INX Inc. (INXI)- Brean Murray Buy » Hold
Watts Ind (WTS)- Morgan Joseph Buy » Hold
Winn-Dixie Stores (WINN)- Friedman Billings Outperform » Mkt Perform
Thomas & Betts (TNB)- Friedman Billings Outperform » Mkt Perform
MasTec (MTZ)- Friedman Billings Outperform » Mkt Perform
Dycom (DY)- Friedman Billings Outperform » Mkt Perform
PNM Resources (PNM )- Citigroup Buy » Hold
Willis Group (WSH)- Lehman Brothers Overweight » Equal-weight
American Intl (AIG)- Lehman Brothers Overweight » Equal-weight
SAFECO (SAF)- Lehman Brothers Overweight » Equal-weight
PNM Resources (PNM)- Lehman Brothers Overweight » Equal-weight
Unilever PLC (UL)- Citigroup Buy » Hold
Andersons (ANDE)- Banc of America Sec Buy » Neutral
Baker Hughes (BHI)- UBS Buy » Neutral
Smith Intl (SII)- UBS Buy » Neutral
Disclosure (“none” means no position):
Leucadia (LUK), in an SEC filing Tuesday night disclose it had purchased more shares in AmeriCredit (ACF)
On Feb 8th, 7,800 shares were purchased at $13 a share.
On Feb. 11th, 37,797 shares were purchased at $12.99 a share.
Leucadia and its affiliates now own 25,633,373 shares or 22.5% of the total outstanding.
Wednesday’s Picks
jeff Macke likes Wal-Mart (WMT) $50.25
Guy Adami recommends Intel (INTC) $20.90
Karen Finerman prefers Microsoft (MSFT) $28.34
Pete Najarian thinks Cisco (CSCO) $23.43 is a buy as a wireless infrastructure play.
Tuesday’s Results
Jeff Macke likes Yahoo! (YHOO) $29.87 Close $29.57 LOSS
Guy Adami prefers Merck (MRK) $45.31 Close $46.53 GAIN
Tim Seymour recommends Tesoro (TSO) $37.06 Close $36.59 LOSS
Pete Najarian thinks Allegheny Technology (ATI) $80.71 is a buy on any pullback. Close $79.12 LOSS
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 4-1
Jeff Macke= 8-8
Tim Seymore= 2-4
Guy Adami= 9-11
Pete Najarian= 9-8
Karen Finerman= 8-9-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
The StockMaster’s have a new “Quant Method Newsletter” pick available at Wall St. Newsletters.