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"Fast Money" for Monday

Jeff Macke recommended eBay (EBAY). Open $37.81

Guy Adami said he wanted own the Short Dow30 ETF (DOG). Open $59.31

Karen Finerman still wanted to hang on to American Standard (ASD). Open $34.83

Pete Najarian liked Rambus (RMBS). Open $17.92

FRIDAY’S RESULTS

Jeff Macke recommended shorting General Motors (GM). Open $33.29 CLOSE $34.22 Gain $.93

Guy Adami said buy the Short Dow30 ETF (DOG). Open $59.46 CLOSE $59.31 Loss $.15

Karen Finerman said buy ConocoPhillips (COP). Open $85.11 CLOSE $85.27 Gain $.16

Pete Najarian liked Sun Microsystems (JAVA) Open $5.80 CLOSE $5.73 Loss $.07

Since my tracking began on 6/21 (1-1 means one up pick and one down pick and no results from my vacation weeks)

Guy Adami= 22-16 Gain $39.86
Eric Bolling= 10-11 Loss $14.01
John Najarian= 13-3 Gain $15.54
Jeff Macke= 27-20 Gain $8.71
Pete Najarian= 15-14 Gain $22.39
Tim Seymore= 3-2 Loss $.49
Karen Finerman= 9-3 Gain $4.69
Stacey Briere-Gilbert= 2-0 Gain $1.61

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Lead Paint Litigation Update

The following is courtesy of Jane Genova’s Law and More, the leading Lead Paint Litigation blog in existence.

Companies effected Sherwin Williams (SHW), DuPont (DD) and NL Industries (NL)

These are excerpts from Lexis Nexis Mealey’s Litigation Report, Volume 16, Issue #11, September 2007. Documents associated with the legal matters discussed are available from Mealey’s or by contacting James Cordrey, Editor, Lexis Nexis Legal News, James.cordrey@lexisnexis.com, 610-205-1125.

DISTRICT OF COLUMBIA ATTORNEY GENERAL SUES LANDLORDS

On August 16, Linda Singer, Attorney General for the District of Columbia, filed the last of 12 lawsuits in D.C. Superior Court against landlords for failure to abate lead-based paint hazards. These sought injunctive relief. Those health hazards had been discovered during Health Department inspections.

Enforcing laws against landlords has been what the former lead paint industry has been advocating for about two decades. Most states and cities already have those laws on the books. However, they are frequently not enforced. It could be effective for tort reformers to create a formal study of what factors mitigate against enforcement.

SANTA CLARA COUNTY, CALIFORNIA CONTINGENCY ARGUMENTS CONTINUE

Santa Clara County, which is appealing Judge Jack Komar’s April 4th ruling against the use of contingency in public nuisance litigation, argues that federal law doesn’t mandate that government attorneys be absolutely neutral, even in criminal matters. It goes further in contending that attorneys participating in public nuisance should be held to the same standard as a criminal prosecutor. According to California law, it claims, criminal prosecutors are not recused, absent showing actual bias which could deprive defendant of a fair trial.

In addition, the county on August 14 filed an opposition to defendant ARCO’s request for judicial notice. The county contends that ARCO failed to follow rules of procedure in doing so.

Meanwhile, amicus curiae briefs are being filed by organizations supporting Judge Komar’s ruling. Those organizations include the U.S. Chamber of Commerce, the American Tort Reform Association and, most recently, the American Chemistry Council. Essentially the amici argue that contingency arrangements with government entities are “suspect,” unconstitutional and violate legal ethics. In addition, those arrangements often cause conflicts of interest, excessive fees and a “revolving door” which reduces the public’s faith in government.

Since California is a trend-setting state which has an activist attorney general Jerry Brown this contingency battle is being closely watched. If the plaintiff wins its appeal then the door is opened for other public nuisance litigation, such as global warming, to move forward on a contingency basis.

OHIO SUPREME COURT AMENDS AUGUST 1 RULING ON “117,” ALLOWING FILING OF REFERENDUM AGAINST EXTENSION OF PUBLIC NUISANCE TO LEAD-PAINT LITIGATION

A divided Ohio Supreme Court allowed opponents of “117” to try to obtain enough signatures on a petition to put the matter to the voters in 2008 as a referendum. The deadline for those signatures in October 30th. If voters eventually say no to this tort-reform measure, then the former lead-paint industry can be sued by the state for causing a public nuisance. This could again give momentum to such suits in other states and cities. The “117” opponents are positioning their campaign as one for consumer rights.

CITY OF MILWAUKEE PRESENTS ORAL ARGUMENTS FOR CHANGE OF DEFENSE VERDICT OR NEW TRIAL

On September 6th, the plaintiff City of Milwaukee gave oral arguments that the defense verdict should be changed or a new trial granted. One primary argument focused on jury instructions. Defendant NL Industries (NL), of course, argued against this, contending that the court properly instructed the jury that Milawukee was required to prove that its conduct was intentional and unreasonable.

A decision is anticipated by the end of September. If the judge does not grant the city’s request, sources say an appeal is certain.

This litigation, though, is small doings compared to the upcoming “Thomas” trial which can set traditional liability concepts on their ear. All business, not only the former lead paint industry, is watching how this plays out. Opening arguments start October 4. A combination of Wisconsin Supreme Court rulings and Governor Doyle’s veto of tort reform had made this state as potentially a hot zone for anti-business litigation as California. Some contend “Thomas” could be more significant in its implications for business as well as the lead paint industry than has been the infamous Rhode Island Lead Paint Trial II.

Other items from Mealey’s Lead Litigation Report will be discussed in later posts on this blog. I wish to thank James Cordrey, Editor of LexisNexis Legal News, for this information. He can be reached at James.Cordrey@lexisnexus.com or 610-205-1125.

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Top Stories This Week at Value Investing News

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Weekend Reading

– Adam Warner is rapidly creating the number one “Best of The Blogsphere” column out there with his “Doing it Bloggystyle” aggregation at Minyanville.com . I read it every time he publishes and recommend you do too. He also has his own blog here.

Jim Kingsland has a great article here

– Slavery’s effect on Africa

– Eric Chesire has a great take on McDonald’s with links to some very informative sites, great job Eric

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This Weeks Insider Buys

“There is only one reason insiders buy shares, they think the price is going up..” Peter Lynch

Novogen (NVGN)= $3,377,000

AnnTaylor Stores (ANN)= $1,081,000

Brookfield Homes (BHS)= $985,000

Global Cash Access Holdings (GCA)= $922,000

Dominion Resources (D)= $850,000

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This Weeks Dividend Hikes of Note

McDonald’s (MCD)= +50%

Harley Davidson (HOG)= +20%

Village Supermarket (VLGEA)= +19%

Zenith Insurance (ZNT)= 19%

Trinity Industries (TRN)= 16.7%

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Friday’s 52 Week Low List

Ethanol makers are showing up now…

WOS Wolseley Plc 18.66
VSE Verasun Energy Corp 11.92
PEIX Pacific Ethanol Inc 10.77
PAGI Pemco Aviation Inc 5.50
SIG Signet Group Plc 17.37
SHOO Steven Madden Ltd 18.76
NLS Nautilus Inc 8.28
HOG Harley-Davidson, Inc 46.50
FUN Cedar Fair, L.P. 23.84
CLDN Celadon Group Inc 13.73
BRN Barnwell Industries, Inc 14.95
BOW Bowater Incorporated 14.70
AVR Aventine Renewable Energy 12.10

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Dow / Monsanto Announcement Call

“Today’s announcement is one of many more to come”. Andrew Liveris

Here are the key traits from Smartrax:

Durability.
-Combining multiple genes in a single package helps ensure sustainable insect protection and weed control year after year:
-Combined modes of action for insect protection guard against the development of insect resistance
-Combined herbicide tolerant traits that offer multiple modes of action for weed control

Performance.
-The complementary nature of the trait platforms converge to offer superior, season-long performance to farmers, notably:
-Enhanced control of a broader spectrum of above-and below-ground insects
-Most comprehensive protection against established and emerging secondary pests
-The industry’s best weed control system

US Corn Market Goal

Dow (DOW) looks to become the #3 US corn player with this deal. Currently they have 1% of the US market and Monsanto (MON) has 25% currently. DuPont’s (DD) Pioneer is #2 with 10%. For Dow to become #3, this would take their market share from the current 1% to well over 5% of the US market (minimum 4.5 million acres of corn planting based on 2007 planting figures). Liveris did say he “has no doubt” Dow Agro has the ability to “be better than #3”.

Dow did say they “are disproportionally strong in our technology vs our market share in the seed business.” They expect this agreement with change that. Dow said “this will be the ultimate technology in corn.”

Dow sees no competitors coming to market with anything similar before them.

Liveris was asked about Q3 earnings for the company as a whole and did touch on it. His answer was rather “cautiously optimistic” as he said. He did say that US energy policy is hurting the US competitive position in the world. There is enough natural gas off the US shore to power the US economy for 100 years yet current policies prohibits it’s extraction.

Wonder why jobs are going overseas?

A full PDF. of the presentation is available here

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Dow & Monsanto Venture: Finally!

On May 25th I posted “Dow has long coveted Dupont’s (DD) seed business an the offer was an attempt to get it. Since that seems to have failed, could a Monsanto (MON) joint venture be coming? It would be a way for Dow (DOW) to get heavily into the seed business and provide Monsanto cheaper building blocks for its products” The answer is apparently ..YES.

Andrew Liveras announced this morning on CNBC that Dow’s (DOW) AgroScience Division and Monsanto (MON) have collaborated to create SmartStax™, the most complete yield protection ever made available in a corn hybrid It features eight different Dow AgroSciences and Monsanto herbicide tolerance and insect-protection genes and is expected to be available to corn growers by the end of the decade (next year and a half). The multi-gene product will protect the corn crop against above- and below-ground insects and also guards the crop from being damaged by certain weed control chemicals. It will be the only seed on the market with this level of protection.

Dow and Monsanto also reached a 10-year agreement to exchange lines of corn in the United States, which will allow the companies to create additional hybrid seeds. The agreement is particularly beneficial to Dow, which is a relatively small but rapidly growing player in the corn seed market. Dow AgroSciences head Jerome Peribere said, “As we do have small market share, this is aiming at boosting essentially our part of the hybrid market share,” said

Dow will generate new royalty income from the agreement and this provides an important platform for future business growth. SmartStax will be incorporated into new, higher-yielding hybrid seed combinations and Dow will stack it with the other cutting-edge trait technologies currently under development.

The world’s demand for is almost unquenchable currently. Any seed that provides additional yield for farmers will be hugely profitable for the farmer and is practically guaranteed success. Monsanto’s recent 71% earnings groth the last quarter ought to proof enough of that. By partnering with the #1 seed company, Monsanto, Dow has assured success with this venture.

Then Liveris did say something that made me laugh…”This agreement provides a further endorsement of our strategy: we’re being patient, we’re being disciplined and we’re investing in both organic opportunities and targeted acquisitions as we deliver on our commitment to become .a predictable, long-term earnings growth company.”

Why did I laugh, he could have said that for everything they have done the past year and a half… gotta love it

There is a call today at 10:30. I will post any additional notables..

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FRIDAY’S LINKS TO VISIT

– This is great. Value Investing is so hard because is chiefly depends on doing, nothing, and that is against human nature

– It is unfortunate that such a brilliant mind has turned into such a partisan hack, it is what he will be remembered for.

– These folks should be embarrassed , telling us what we already know.

– Quite possibly the dumbest article ever written.

– Buybacks vs. dividends. This is a good article. It should also be noted Buffett has always favored buybacks

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Dow Continues Acquisitions

Dow Chemical(DOW) said on Thursday that its Dow Epoxy unit agreed to acquire three companies to expand its epoxy systems business.

The company agreed to buy UPPC AG in Germany, and POLY-CARB Inc and GNS Technologies here in the US. Terms of the transactions were not disclosed each acquisition is expected to close within 30 to 45 days. These acquisitions are perfectly consistent with Dow’s announced strategy to invest in its downstream performance businesses to further distance itself from the cyclical commodity chemicals business. For Dow Epoxy, the acquisitions will accelerate the growth and geographic expansion of its new Dow Epoxy Systems business unit, launched earlier this year.

About the companies(from their websites)

GNS Technologies: Specializes in providing high performance products and customized systems to thermoset polymer markets with a focus on cross-linking polymers such as epoxies, polyurethanes, polyureas, etc. used for civil engineering, industrial maintenance and steel structure coating applications. Additional info about GNS Technologies at www.gnstechnologies.com.

POLY-CARB Inc.: Provides epoxy products and systems in the following industries: highway bridge restoration and waterproofing, parking structures restoration and waterproofing, pavement striping and delineation, industrial floor surfacing and maintenance, corrosion control and tank linings, structural adhesives, and coatings and grouts. Additional info about POLY- CARB at www.poly-carb.com.

UPPC AG: UPPC AG is a leading systems and hardeners supplier deeply seated in the civil engineering, specialty coatings and composites industries, as well as select specialty markets. The company is headquartered in Baltringen, Germany and was established in 1986. Additional info about UPPC AG at www.uppc.de.

Big deal? Not huge but continued affirmation that Dow is on a very disciplined path.

Oh yeah, in case you did not hear it, Dow also declared a dividend of 42 cents per share today (384th consecutive), payable October 30, 2007, to shareholders of record on September 28, 2007. This gives Dow an annual yield at this rate of a solid 4%, nice. Since 1912, Dow has paid its shareholders cash dividends every quarter and has either maintained or increased the quarterly dividend amount throughout that time.

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Friday’s Upgrades / Downgrades

UPGRADES

FTD Group FTD Matrix Research Buy » Strong Buy
Unilever PLC UL Lehman Brothers Underweight » Equal-weight
Gateway GTW Citigroup Sell » Hold
MeadWestvaco MWV Credit Suisse Neutral » Outperform
Prudential PRU Credit Suisse Neutral » Outperform
Merck MRK Banc of America Sec Neutral » Buy
Thornburg Mortg TMA Piper Jaffray Underperform » Market Perform
Infineon IFX Lehman Brothers Equal-weight » Overweight
Thornburg Mortg TMA Deutsche Securities Sell » Hold

DOWNGRADES

Syntax-Brillian BRLC Canaccord Adams Buy » Hold
American Community Bancshares ACBA Stifel Nicolaus Buy » Hold
Syntax-Brillian BRLC Collins Stewart Buy » Market Perform
STMicroelectronics STM Lehman Brothers Overweight » Underweight
PepsiAmericas PAS HSBC Securities Neutral » Underweight
Buckeye Tech BKI Citigroup Buy » Hold
Biogen Idec BIIB UBS Neutral » Sell

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"Fast Money" for Friday

FRIDAY’S PICKS

Jeff Macke recommended shorting General Motors (GM). Open $33.29

Guy Adami said buy the Short Dow30 ETF (DOG). Open 59.46

Karen Finerman said buy ConocoPhillips (COP). Open $85.11

Pete Najarian liked Sun Microsystems (JAVA) Open $5.80


THURSDAY’S RESULTS

Jeff Macke recommended Short Dow30 ProShares (DOG) as a bet against The Dow. Open $59.92 Close $59.46 Loss $.46

Guy Adami likes Zimmer Holdings (ZMH). Open $81.02 Close $82.49 Gain $1.47

Karen Finerman prefers Johnson & Johnson (JNJ). Open $62.51 Close $63.11 Gain $.60

Pete Najarian says St. Jude Medical (STJ) is a buy. Open $46.83 Close $45.94 Loss $.89

Since my tracking began on 6/21 (1-1 means one up pick and one down pick and no results from my vacation weeks)

Guy Adami= 22-15 Gain $40.01
Eric Bolling= 10-11 Loss $14.01
John Najarian= 13-3 Gain $15.54
Jeff Macke= 26-20 Gain $7.78
Pete Najarian= 15-13 Gain $22.46
Tim Seymore= 3-2 Loss $.49
Karen Finerman= 8-3 Gain $4.54
Stacey Briere-Gilbert= 2-0 Gain $1.61

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Thursday’s 52 Week lows

WMAR West Marine Inc 11.35
WCC Wesco Intl Inc 41.75
SEH Spartech Corporation 17.51
SEED Origin Agritech Limited 6.76
RYL The Ryland Group, Inc 24.31
RT Ruby Tuesday, Inc. (G … 20.44
NT Nortel Networks Corp New 16.45
LCRY LeCroy Corporation 7.10
LANC Lancaster Colony Corp … 36.59
LAB Labranche & Co Inc 4.62
KKD Krispy Kreme Doughnut … 3.10
HOG Harley-Davidson, Inc 46.77
DF Dean Foods Co New 25.32
ALU Alcatel-Lucent 9.16

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Thursday’s Links To Visit

– Absolutely, no free rides

– Goldman goes bargain hunting

– Very Interesting take on YouTube’s impact on Google

– More folks who see through the fog out there

Like I said