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Wednesday's Upgrades and Downgrades

Post author By ToddSullivan
Post date May 28, 2008

Upgrades
NGAS Resources (NGAS)- BMO Capital Markets Market Perform » Outperform
WellPoint (WLP)- BMO Capital Markets Market Perform » Outperform
Polaris Inds (PII)- FTN Midwest Sell » Neutral
AGCO Corp (AG)- Credit Suisse Neutral » Outperform Consolidated Comms Illinois (CNSL)- Credit Suisse Neutral » Outperform
Citizens (CZN)- Credit Suisse Neutral » Outperform
BCE Inc (BCE)- UBS Sell » Neutral
Knight Transportation (KNX)- Wachovia Mkt Perform » Outperform
EnergySouth (ENSI)- Brean Murray Hold » Buy
Newfield Expl (NFX)- KeyBanc Capital Mkts Hold » Buy
LCA Vision (LCAV)- RBC Capital Mkts Underperform » Sector Perform
Grupo Aeroportuario del Pacifico (PAC)- Deutsche Securities Hold » Buy
American Axle (AXL)- Citigroup Hold » Buy

Downgrades
United Comm Banks (UCBI)- Sterne Agee Hold » Sell
Liberty Prop (LRY)- Credit Suisse Neutral » Underperform
Duke Realty (DRE)- Credit Suisse Neutral » Underperform
Borg Warner (BWA)- KeyBanc Capital Mkts Buy » Hold
General Motors (GM)- Citigroup Buy » Hold
Anheuser-Busch (BUD)- Deutsche Securities Buy » Hold
BRT Realty Trust (BRT)- Friedman Billings Mkt Perform » Underperform

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Articles

Wednesday’s Upgrades and Downgrades

Post author By ToddSullivan
Post date May 28, 2008

Upgrades
NGAS Resources (NGAS)- BMO Capital Markets Market Perform » Outperform
WellPoint (WLP)- BMO Capital Markets Market Perform » Outperform
Polaris Inds (PII)- FTN Midwest Sell » Neutral
AGCO Corp (AG)- Credit Suisse Neutral » Outperform Consolidated Comms Illinois (CNSL)- Credit Suisse Neutral » Outperform
Citizens (CZN)- Credit Suisse Neutral » Outperform
BCE Inc (BCE)- UBS Sell » Neutral
Knight Transportation (KNX)- Wachovia Mkt Perform » Outperform
EnergySouth (ENSI)- Brean Murray Hold » Buy
Newfield Expl (NFX)- KeyBanc Capital Mkts Hold » Buy
LCA Vision (LCAV)- RBC Capital Mkts Underperform » Sector Perform
Grupo Aeroportuario del Pacifico (PAC)- Deutsche Securities Hold » Buy
American Axle (AXL)- Citigroup Hold » Buy

Downgrades
United Comm Banks (UCBI)- Sterne Agee Hold » Sell
Liberty Prop (LRY)- Credit Suisse Neutral » Underperform
Duke Realty (DRE)- Credit Suisse Neutral » Underperform
Borg Warner (BWA)- KeyBanc Capital Mkts Buy » Hold
General Motors (GM)- Citigroup Buy » Hold
Anheuser-Busch (BUD)- Deutsche Securities Buy » Hold
BRT Realty Trust (BRT)- Friedman Billings Mkt Perform » Underperform

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Archer Daniel's Midland (ADM): Something Brewing?

Post author By ToddSullivan
Post date May 27, 2008

Two billion dollars is a lot of cash for “general corporate purchases”. Sounds more like it is for a “investment in long term opportunity”.

Archer Daniels Midland Company (ADM) today announced that it plans to offer and sell, subject to market and other conditions, 35,000,000 equity units and to grant the underwriters an option to purchase 5,000,000 additional equity units to cover over-allotments. Each equity unit has a stated amount of $50, for a possible aggregate offering amount of $2 billion if the underwriters exercise their over-allotment option in full.

The equity units will initially consist of a contract to purchase ADM common stock and a 5.0% beneficial ownership interest in a $1,000 principal amount debenture due June 1, 2041. Under the purchase contract, holders are required to purchase ADM common stock no later than on June 1, 2011. ADM intends to use substantially all of the net proceeds from this offering for general corporate purposes, including repayment of short-term indebtedness and investment in long-term growth opportunities.

I have wrote in the past about possible ADM targets, the latest being this one about a possible Cuban investment. ADM has been pretty upfront about its desire to expand it capacity in other nations with lower feedstock costs.

One would have to pretty naive to think that a $2 billion capital raising was for anything but.

What will be really interesting is not the “are they or aren’t they” question but the “where” they decide to do it. My guess is they will be taking a trip south…….. outside of our borders…

Companies like Pacific Ethanol (PEIX) and Verasun (VSE) are not cheap by any means. Given their current predicaments, share price aside I would be shocked if ADM expressed interst. The most diversified of the bunch, The Andersons (ANDE) most likely has no interest in being sold. That leave Cuba and Brazil as the most likely targets…

Just popping into my head….maybe a rail investment? ADM already has extensive rail operations and is a huge user of the industry, maybe buying into it and profiting with it would help?

Either way, gonna be fun…

Disclosure (“none” means no position):Long ADM, None

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Archer Daniel’s Midland (ADM): Something Brewing?

Post author By ToddSullivan
Post date May 27, 2008

Two billion dollars is a lot of cash for “general corporate purchases”. Sounds more like it is for a “investment in long term opportunity”.

Archer Daniels Midland Company (ADM) today announced that it plans to offer and sell, subject to market and other conditions, 35,000,000 equity units and to grant the underwriters an option to purchase 5,000,000 additional equity units to cover over-allotments. Each equity unit has a stated amount of $50, for a possible aggregate offering amount of $2 billion if the underwriters exercise their over-allotment option in full.

The equity units will initially consist of a contract to purchase ADM common stock and a 5.0% beneficial ownership interest in a $1,000 principal amount debenture due June 1, 2041. Under the purchase contract, holders are required to purchase ADM common stock no later than on June 1, 2011. ADM intends to use substantially all of the net proceeds from this offering for general corporate purposes, including repayment of short-term indebtedness and investment in long-term growth opportunities.

I have wrote in the past about possible ADM targets, the latest being this one about a possible Cuban investment. ADM has been pretty upfront about its desire to expand it capacity in other nations with lower feedstock costs.

One would have to pretty naive to think that a $2 billion capital raising was for anything but.

What will be really interesting is not the “are they or aren’t they” question but the “where” they decide to do it. My guess is they will be taking a trip south…….. outside of our borders…

Companies like Pacific Ethanol (PEIX) and Verasun (VSE) are not cheap by any means. Given their current predicaments, share price aside I would be shocked if ADM expressed interst. The most diversified of the bunch, The Andersons (ANDE) most likely has no interest in being sold. That leave Cuba and Brazil as the most likely targets…

Just popping into my head….maybe a rail investment? ADM already has extensive rail operations and is a huge user of the industry, maybe buying into it and profiting with it would help?

Either way, gonna be fun…

Disclosure (“none” means no position):Long ADM, None

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Lampert Continues AutoNation (AN) Buying Binge

Post author By ToddSullivan
Post date May 27, 2008
2 Comments on Lampert Continues AutoNation (AN) Buying Binge

Another week, another post on Sears’ (SHLD) Chairman buying AutoNation (AN) shares.

Lampert added over 500,000 shares bringing his ownership to 69.6 million shares or 38.9% of the total outstanding.

Disclosure (“none” means no position):Long SHLD, none

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Leucadia (LUK) Purchases Another 1m Plus Jefferies (JEF) Shares

Post author By ToddSullivan
Post date May 27, 2008

In three seperate transaction, Leucadia (LUK) added an additional 1.4 million shares of investment bank Jefferies (JEF).

The purchases bring Leucadia’s ownership to 48.585 million shares

Disclosure (“none” means no position):None

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"Fast Money" for Wednesday

Post author By ToddSullivan
Post date May 27, 2008

Jeff Macke likes Border’s Group (BGP) $6.25 because “it was a dollar higher a week ago.”

Guy Adami recommends Charter Communications (CHTR) $1.31 on a recent upgrade.

Karen Finerman suggests Alliance One (AOI) $5.83 but emphasizes that this trade comes with “tons of risk.”

Pete Najarian thinks Washington Mutual (WM) $9.5 is an attractive stock in a toxic area.

2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 1-1
Jon Najarian= 4-3
Jeff Macke= 40-33-1
Tim Seymore= 17-14
Guy Adami= 41-36
Pete Najarian= 38-36
Karen Finerman= 36-31-1
Joe Terrenova= 1-3

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):

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Burnett's Disdain for Lampert on Display Again…..Why?

Post author By ToddSullivan
Post date May 27, 2008

It has been 6 months since I first posted on this. Does anyone know what Sears Holdings (SHLD) Eddie Lampert did to CNBC’s Erin Burnett? Watch below..

Now, I have never seem a “anchor” with such a snotty almost giddy reaction to a company or its head at news that is less than wonderful. Now, had Lampert been convicted of inside trading or fraud, it would be one thing and more than justified. But, Lampert has done nothing wrong except make shareholders very wealthy. Yes, despite the stock’s recent fall, those who invested with him 4 years ago are still way ahead and he has an almost unmatched track record.

Does anyone know the back-history here?

I have yet to see or find and example where Burnett has reported on any of Lampert’s investing successes. Anyone?

Disclosure (“none” means no position):Long SHLD.

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Burnett’s Disdain for Lampert on Display Again…..Why?

Post author By ToddSullivan
Post date May 27, 2008

It has been 6 months since I first posted on this. Does anyone know what Sears Holdings (SHLD) Eddie Lampert did to CNBC’s Erin Burnett? Watch below..

Now, I have never seem a “anchor” with such a snotty almost giddy reaction to a company or its head at news that is less than wonderful. Now, had Lampert been convicted of inside trading or fraud, it would be one thing and more than justified. But, Lampert has done nothing wrong except make shareholders very wealthy. Yes, despite the stock’s recent fall, those who invested with him 4 years ago are still way ahead and he has an almost unmatched track record.

Does anyone know the back-history here?

I have yet to see or find and example where Burnett has reported on any of Lampert’s investing successes. Anyone?

Disclosure (“none” means no position):Long SHLD.

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Oil: A Sale and a Discussion

Post author By ToddSullivan
Post date May 27, 2008

First, I sold my Oil (USO) long today, 140% in 16 months is just fine. Second, watch this discussion on oil.

The thing that strikes me is that even the “pro’s” cannot agree on the “what’s and why’s” of current events.

Disclosure (“none” means no position):None

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Borders.com Goes Live

Post author By ToddSullivan
Post date May 27, 2008

Borders (BGP) has turned on its website today after a seven year absence.

The central feature at Borders.com is called the “Magic Shelf”. Borders says the shelf captures the essence of shopping in one of its stores. Books are placed cover out and side by side on the shelf. Shoppers can move up or down and from side to side. Roll the cursor over a book and a box with details about it pops up. The shelf can be customized by the user and can show 20 shelves of titles and offers “just for you” picks based on past purchases.

“We wanted a real bookstore online,” said Kevin Ertell, senior vice president for e-business at Borders, in an interview with the Free Press last week. “What we did to capture that bookstore feel was putting the Magic Shelf on the sign-in page.” It is a unique feature and one that ought to lead to more sales.

Borders.com offers free shipping on some orders over $25 and also offers free shipping to its stores, where shoppers will be able to pick up a box containing their order about two days after buying. Ertell says the company expects this option to be popular in urban areas, for example, where people might not want a package left outside their home.

CEO George Jones expects the site to be profitable in 2009.
Q1 earnings will be released later today and the Q1 earnings call is tomorrow am.

Disclosure (“none” means no position):Long BGP

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Tuesday's Links

Post author By ToddSullivan
Post date May 27, 2008

Cramer, CBNC vs FOX. Icahn, OC vs USG

– Jeff, the way to handle the competition is to ignore them if they are indeed so insignificant. By engaging them, you validate them, no mater what you sa

– Icahn is great…. he says what he thinks

– It isn’t a “which one“, it is a “buy both”

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Tuesday’s Links

Post author By ToddSullivan
Post date May 27, 2008

Cramer, CBNC vs FOX. Icahn, OC vs USG

– Jeff, the way to handle the competition is to ignore them if they are indeed so insignificant. By engaging them, you validate them, no mater what you sa

– Icahn is great…. he says what he thinks

– It isn’t a “which one“, it is a “buy both”

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Tuesday's Upgrades and Downgrades

Post author By ToddSullivan
Post date May 27, 2008

Upgrades
Netease.com (NTES)- Pali Research Neutral » Buy
Dick’s Sporting Goods (DKS)- UBS Neutral » Buy
EW Scripps (SSP)- Bear Stearns Peer Perform » Outperform
National Semi (NSM)- Deutsche Securities Hold » Buy

Downgrades
GTX (GTXI)- Cowen & Co Outperform » Neutral
Del Monte (DLM)- Longbow Neutral » Sell
Hansen Medical (HNSN)- Needham Buy » Hold
Brinker (EAT)- Stifel Nicolaus Hold » Sell
US Airways (LCC)- Credit Suisse Outperform » Underperform
Harte-Hanks (HHS)- Bear Stearns Outperform » Peer Perform
Pacific Sunwear (PSUN)- Piper Jaffray Buy » Neutral
Nalco (NLC)- JP Morgan Neutral » Underweight
Nordson (NDSN)- Jefferies & Co Buy » Hold
Alkermes (ALKS)- Robert W. Baird Outperform » Neutral
Linear Tech (LLTC)- Deutsche Securities Buy » Hold

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Tuesday’s Upgrades and Downgrades

Post author By ToddSullivan
Post date May 27, 2008

Upgrades
Netease.com (NTES)- Pali Research Neutral » Buy
Dick’s Sporting Goods (DKS)- UBS Neutral » Buy
EW Scripps (SSP)- Bear Stearns Peer Perform » Outperform
National Semi (NSM)- Deutsche Securities Hold » Buy

Downgrades
GTX (GTXI)- Cowen & Co Outperform » Neutral
Del Monte (DLM)- Longbow Neutral » Sell
Hansen Medical (HNSN)- Needham Buy » Hold
Brinker (EAT)- Stifel Nicolaus Hold » Sell
US Airways (LCC)- Credit Suisse Outperform » Underperform
Harte-Hanks (HHS)- Bear Stearns Outperform » Peer Perform
Pacific Sunwear (PSUN)- Piper Jaffray Buy » Neutral
Nalco (NLC)- JP Morgan Neutral » Underweight
Nordson (NDSN)- Jefferies & Co Buy » Hold
Alkermes (ALKS)- Robert W. Baird Outperform » Neutral
Linear Tech (LLTC)- Deutsche Securities Buy » Hold

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