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"Fast Money" for Thursday


Thursday’s Picks
Jeff Macke likes Disney (DIS). Open $32.26

Guy Adami prefers Sallie Mae (SLM). Open $22.89

Tim Seymour recommends Cameco (CCJ). Open $36.70

Pete Najarian says Morgan Stanley (MS) is a buy. Open $50.08

Wednesday’s Picks:
Jeff Macke recommends Best Buy (BBY).Open $51.62 Close $51.20 LOSS

Guy Adami likes Oracle (ORCL).Open $21.25 Close $20.76 LOSS

Pete Najarian prefers Cypress (CY). Open $34.83 Close $35.61 GAIN

Results since 6/21/2007:

Guy Adami= 56-45 = 59%
John Najarian= 13-4 = 76%
Jeff Macke= 58-40 = 62%
Pete Najarian= 46-40 = 54%
Tim Seymore= 6-7 = 57%
Karen Finerman= 37-30 = 55%
Stacey Briere-Gilbert= 3-0 = 100
Ned Riley= 1-0 = 100%
Carter Worth= 0-1 = 0%

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Wednesday’s 52 Week low’s


SBUX Starbucks Corp 20.04
SAVB The Savannah Bancorp Inc 19.25
S Sprint Nextel Corporation 13.50
RL Polo Ralph Lauren Corp 63.12
M Macy’s, Inc. 26.67
LCI Lannett Company Inc 3.27
KSS Kohl’s Corporation 45.70
IHP IHOP Corp 38.22
IHG Intercontinental Htls … 17.54
DD E.I. du Pont de Nemou … 42.69
DBD Diebold, Incorporated 30.82

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Whitney Tilson on Housing

I become a bigger and bigger fan of Whitney every time I hear or read his thoughts. Here he discusses housing inventory.


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Lead Paint Litigation Update

Here are the notable events forthcoming for Sherwin Williams (SHW) and NL Industries (NL)

– Rhode Island Supreme Court schedule finally released

– Responses the RI “lead free” abatement plan filed.

Short list? Sure is….

Essentially that is what lead paint litigation has been reduced to. When you throw into the mix the recent RI Supreme Court lead paint related ruling, one has to think that these dates are now reduced to the day “this stuff is finally behind us” not “hopefully we prevail”.

It what has become a colossal waste of time, the lead paint litigation saga is virtually over. The true irony here? The only company that will actually contribute to any abatement will be DuPont (DD), who settled with RI to avoid what at the time was thought to be a more costly legal outcome. Now, before we feel sorry for DuPont, we need to remember that both they and RI AG Patrick Lynch did their best to assure this money never “went to the children” as it was donated to Boston Hospitals and a Washington DC DuPont controlled charity.

One can only assume recent public filing in court by the defendants lead to the recent “release” of funds to the state.

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Wednesday’s Links

Blogystyle, Best Deals, Raising emotionally healthy kids, Bosses

– What do Jessica Simpson and investing have in common?

– What was the best deal of 2007?

– Parents, check this out

– Dumb bosses

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Airlines’ Questionable Move

Airlines are making a move to fill pilot ranks that to be honest, really do not make me want to run out and jump into a plane. As a matter of fact, they make me want to avoid them.

Faced with competition for pilots from overseas carriers and private companies, airlines including American Airlines (AMR), United (UAUA) and US Airways (LCC) have announced several measures to address the shortage.

*They are lowering the flight hour requirements for pilots from 1500 to 500, with only 50 of those hours in multi-engine planes.
*Raising the mandatory retirement age for pilots from 60 to 65.
*Partnering with flight schools to offer “accelerated” educational programs.

Now, correct me if I am wrong, but aren’t the most likely people to get into an accident in an automobile the young & inexperienced and the elderly? Is it really the best move to place those very demographics behind the wheel of a DC-10? Perhaps a better move to become more competitive when hiring would be to raise the starting salary from the $24,000 a year it sits at now? Essentially there is not really a shortage of pilots, just pilots that will work for that money when better money is available elsewhere.

When CVS (CVS) needed additional pharmacists in order to accomplish its expansion plan, they began a program that paid for schooling for applicants in return for a 5 year commitment after graduation.
Is there anything stopping airlines from enacting a similar program?
Would you feel safe if CVS lowered the standards for those dispensing your medicine?

Admittedly the younger hires will be co-pilots, not pilots out of the gate but as the airlines continue to lower the experience requirement, these folks will eventually find themselves behind the controls with potentially thousands of hours less flying time than their predecessors had.

If we had a shortage of heart surgeons, would any of us be rushing to get in line for an operation from a doctor who was allowed to graduate with a GPA below 2.0 or only required to have 1 year rather than 3 of residency? Me either.

The move to raise the retirement age alone is estimated to net 1,500 additional pilots in the first year alone. That means 1500 people who last year and this year were considered to have a skill set that the unstoppable aging process would have deteriorated to the point that it was no longer safe to have them pilot airlines.

Now, because we need more folks, we can just move the needle? I am sure the vast majority of these pilots, and let’s not forget, these folks will be pilots, not co-pilots, who will be just fine flying. But, if say 15 of them aren’t, isn’t that a huge problem?

Lowering the standard to accomplish a goal is never the best choice, more often than not the results can be tragic…

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International Tariffs Cut: ADM to Profit.

What do Turkey, The European Union, China, Russia, Mexico, Morocco, Azerbaijan, Bosnia, Egypt, Philippines, Taiwan, Bangladesh, India, Nigeria, Ghana and Peru all have in common?

The have all dramatically slashed tariffs on food in recent months. Turkey, for instance announced a reduction on wheat tarrifs from 130% to 8%, corn from 130% to 35% and scrapped the previous 100% duty for barley.

This follows moves by Morocco cutting its wheat import tariff from 130% to 2.5%, China cutting its soyabean import tariff from 35 to 1%, Russia cutting its import tariff for soya oil and rapeseed oil from 15% to 5% and Nigeria cutting its rice import tax from 100% to just 2.7%.

The cuts come as cereals and soyabean prices have risen to new highs and a warning by the US Department of Agriculture recently that insatiable demand from emerging countries is denting inventories dramatically.

As an investor, who benefits? Food processors. The top choices will be Archer Daniels Midland (ADM) with processing, distribution and trading operations in over 35 countries and privately held Cargill. As demand rises exponentially throughout the world, ADM’s distribution and trading segments are poised to reap the benefits.

The virtual elimination of tariffs will only serve to increase the demand as prices for imports of the affected products drop by half in most cases. Aside from the demand increase, the moves will also increase traffic in the goods. As these goods are moved from producers to end-user, ADM profits.

Between the recently passed energy bill and this news, ADM’s major segments are both poised for prolonged growth.

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Wednesday’s Upgrades and Downgrades

UPGRADES

Prospect Energy PSEC Davenport Neutral » Buy
Quicksilver Resrcs KWK Canaccord Adams Hold » Buy
Ceragon CRNT Ferris Baker Watts Neutral » Buy
Ingersoll-Rand IR Deutsche Securities Hold » Buy
Adobe Systems ADBE Deutsche Securities Hold » Buy
Symantec SYMC Bear Stearns Underperform » Peer Perform
DaVita DVA Oppenheimer Neutral » Buy
Intl Paper IP Credit Suisse Neutral » Outperform
Embarq EQ JP Morgan Neutral » Overweight
Fairport Comms FRP JP Morgan Underweight » Neutral
Occidental Petro OXY Friedman Billings Underperform » Mkt Perform
Royal Gold RGLD HSBC Securities Neutral » Overweight
Equity Res EQR Lehman Brothers Equal-weight » Overweight
Cirrus Logic CRUS Jefferies & Co Hold » Buy
Forest Labs FRX Soleil Hold » Buy
Atwood Oceanics ATW Banc of America Sec Neutral » Buy
Gulfmark Offshore GLF Banc of America Sec Neutral » Buy

DOWNGRADES

Adobe Systems ADBE Davenport Neutral » Reduce/Sell
ACI Worldwide ACIW Janney Mntgmy Scott Buy » Neutral
Starent Networks STAR JP Morgan Overweight » Neutral
Tempur-Pedic TPX William Blair Outperform » Mkt Perform
Embraer SA ERJ Credit Suisse Outperform » Neutral
Carrier Access CACS Needham & Co Buy » Hold
Asta Funding ASFI Kaufman Bros Buy » Hold
TransTech TT KeyBanc Capital Mkts Aggressive Buy » Hold
AvalonBay AVB Robert W. Baird Outperform » Neutral
Associated Estates AEC Robert W. Baird Outperform » Neutral
Marshall & Ilsley MI Deutsche Securities Buy » Hold
Trident Microsystems TRID Roth Capital Buy » Hold
Zymogenetics ZGEN Banc of America Sec Buy » Neutral
Nestle NSRGY UBS Buy » Neutral
Lincare LNCR Oppenheimer Buy » Neutral
Windstream WIN JP Morgan Neutral » Underweight
Cousins Prop CUZ Lehman Brothers Overweight » Equal-weight
Allianz AG AZ Lehman Brothers Overweight » Equal-weight
Mack-Cali Realty CLI Lehman Brothers Equal-weight » Underweight
TransTech TT Lehman Brothers Overweight » Equal-weight
Grant Prideco GRP Citigroup Buy » Hold

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"Fast Money" for Wednesday


Wednesday’s Picks:
Jeff Macke recommends Best Buy (BBY).Open $51.62

Guy Adami likes Oracle (ORCL).Open $21.25

Pete Najarian prefers Cypress (CY). Open $34.83

Tuesday’s Results
Guy Adami prefers Holly Corp (HOC) as a refiner play.Open $50.20 Close $51.13 GAIN

Karen Finerman likes kidney dialysis provider DaVita (DVA). Open $55.72 Close $56.99 GAIN

Pete Najarian thinks ASML Holdings (ASML) is a short. Open $33.05 Close $32.87 GAIN

Results since 6/21/2007:

Guy Adami= 56-44 = 59%
John Najarian= 13-4 = 76%
Jeff Macke= 58-39 = 62%
Pete Najarian= 45-40 = 53%
Tim Seymore= 6-7 = 57%
Karen Finerman= 37-30 = 55%
Stacey Briere-Gilbert= 3-0 = 100
Ned Riley= 1-0 = 100%
Carter Worth= 0-1 = 0%

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A Masochistic Market Sells Goldman’s Great Quarter

Goldman Sachs (GS) had it usual fantastic quarter and appears to be the only financial institution that will walk unscathed through the credit crisis, and shares fall.

Goldman announced:
* They will repurchase over 15% of outstanding shares
* Announced CDO exposure of only $400 million
* Investment banking revenues jumped 47% from last year to $1.97 billion,
* Q4 net earnings of $3.166 billion or $7.01 per share vs $6.59 last year.
* Earned $24.73 a share on revenue of $11.407 billion, a 26% increase in 2007.

What did the market seize on today? David Viniar, its chief financial officer said “The markets are pretty dislocated. In the near term we are more cautious, not pessimistic, just cautious.”

And for that, $4.4 billion was shaved off Goldman’s market cap at one point today. Let’s not forget that Goldman trades at a scorching PE of 7 times trailing earnings. I would say the market not only has “pessimistic” baked into the price, they have “disastrous” factored in it.

It is ok, Goldman at or under $200 is a screaming buy and those of us who can see through the fear are getting this institution at dollar store prices. This is how negative the markets are on anything financial, even good news is sold.

As earnings news come out from the other financials over the next few weeks like Merrill (MER) and Lehman (LEH), people will actually realize just how good this quarter was.

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Tuesday’s 52 Week Low’s


WM Washington Mutual Inc 14.77
S Sprint Nextel Corporation 13.82
ODP Office Depot, Inc 13.95
MU Micron Technology Inc 7.79
MSO Martha Stewart Living … 9.47
DD E.I. du Pont de Nemou … 43.27
DAVE Famous Dave’s of Amer … 12.49
DAL Delta Air Lines Inc Del 14.24

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Tuesday’s Links

Blogging Tips, Selling Organs, More Senate Incompetence, Kids and Money

– Here are ten blogging tips from the original blogger.

– If we need organs so bad, why not let people sell them upon their death. Why do they have to be donated? It would be a sure way to get more in circulation.

– OK, If we are in the current housing crisis due to loose lending standards, how in the hell will “loosening” them more help?

– One of the most important things a parent can do is teach their kids about money. This is a must read.

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Sprint Service Down

Limited blogging today due to Sprint's netwok being down ün the area

Wonderful

Todd



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http://www.mobylo.com/emv/


Todd Sullivan

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Citigroup Follows the Old Testament

“If any mischief follow, then thou shalt give life for life, eye for eye, tooth for tooth, hand for hand, foot for foot, burning for burning, wound for wound, stripe for stripe.” Exodus 21:23,24,25

Citigroup (C) on Monday enacted its own revenge on the industry that has downgraded, maligned and otherwise dismissed it the past three months.

Cutting a swath through the sector Citi:

*Downgraded three stocks to “Sell” from “Hold” — Comerica (CMA), M&T Bank (MTB) and US Bancorp (USB).

*Cut price targets on Dallas-based Comerica to $35 from $53, M&T’s to $78 from $113 and US Bancorp to $29 from $35.

*Reduced ratings to “Hold” from “Buy” on Bank of America (BAC), JPMorgan (JPM), Wachovia (WB), Wells Fargo (WFC), PNC Financial (PNC) and First Horizon National (FHN).

* Lowered price targets on Bank of America, to $42 from $58, JPMorgan’s to $46 from $57, Wachovia to $39 from $50, PNC to $65 from $80, Wells Fargo’s to $31 from $33, First Horizon’s to $20 from $29, Fifth Third Bancorp (FITB) to $25 from $33. Keycorp (KEY) to $23 from $34, Suntrust Banks (STI)to $63 from $78 and finally National City (NCC) to $15 from $25.

As a matter of fact, Citi hit virtually every major bank except, well, Citi.

The banks play this game with each other and for that reason, anytime the upgrade or downgrade each other it needs to be looked at very skeptically.

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MFP Investors Micheal Price on Sears Holdings

Mr. Price talks to Bloomberg about his largest investment, Sears Holdings (SHLD)

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