Sunday, January 20, 2008

Trading Alerts: Tuesday, January 22, 2007


Abbott Laboratories (ABT-$59.43) said that it secured U.S. Food and Drug Administration approval to market HUMIRA as a treatment for adult patients with moderate to severe chronic plaque psoriasis, an autoimmune disease characterized by skin lesions that are sometimes painful, itchy, and may bleed.

A downgrade of bond insurer Ambac Financial Group Inc. (ABK-$6.20) is likely to have far-reaching effects, making it more difficult for cities to issue new bonds and forcing further write-downs at financial services companies, analysts said Friday.

Apple Inc. (APPL-$161.36) will post results for its first-quarter after the close of trading on Tuesday. Analysts polled by Thomson Financial expect the iPod maker to report earnings of $1.61 per share on sales of $9.46 billion, on average.

In this Web-pervasive atmosphere, investors in China more often view Internet plays as consumer rather than technology stocks. This is the reason that amid the past week's sell off, Credit Lyonnais Securities said recent risk aversion in markets is a good reason to again buy Baidu.com (BIDU-$273.04), China's leading search portal, whose stock price fell 12 of the past 15 sessions and is 35% off its Nov. 5 high.

Bank of America Corp. (BAC-$35.97) reports fourth-quarter earnings Tuesday. Analysts expect BofA to report profit of 18 cents per share and revenue of $13.24 billion on average, according to Thomson Financial. Investors will be watching for news on mortgage-related write-downs and the recent Countrywide acquisition.

Bank of Marin Bancorp (BMRC) reported net income for the fourth quarter of $3.26 million or $0.62 per share, compared to $3.23 million or $0.57 per share in the same quarter last year. Two analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.57 per share.
Biogen Idec (BIIB-$59.91) could make a large-scale acquisition this year following its recent failed attempt to sell itself, the company’s CEO Jim Mullen told Financial Times’ mergermarket.

Caterpillar Inc. (CAT-$62.81) will release 2007 fourth-quarter financial results on Friday, January 25, 2008. Analysts polled by Thomson Financial are looking for a fourth-quarter profit, on average, of $1.50 a share with sales of $11.8 billion.

Wall Street is awaiting release of eBay Inc.’s (EBAY-$28.33) fourth-quarter results on Wednesday, anxious to hear more about the transformation of the electronic-commerce company's main business, online auctions. For the fourth quarter, the Company previously provided guidance of 39 cents to 41 cents a share, on an operating basis.

Israeli defense contractor Elbit Systems (ELST-$59.04) awarded $40 Million in several contracts for the supply of thermal imaging systems.
GlaxoSmithKline Plc. (GSK-$50.43) decided not to exercise its option to license the experimental drug, XL784, for diabetic nephropathy. Partner Exelixis, Inc. (EXEL-$7.51), in an attempt to reassure investors, said the Company is planning other pivotal trials and partnerships for this year, with several discussions already underway.

Ford Motor Co. (F-$5.92) is expected to post another quarterly loss next Thursday, sideswiped by a slowing U.S. economy, fierce competition at home and abroad, and a dearth of new products capable of turning around its prolonged sales slump.
Getty Images Inc. (GYI-$21.94), the world's biggest supplier of pictures and video to media and advertising companies, has put itself on the auction block and could fetch more than $1.5 billion, The New York Times reported on Monday.
Oilfield services provider Halliburton Co. (HAL-$32.40) said Monday it has secured a three-year, $683 million contract with Mexico's state-owned oil monopoly to manage the drilling and completion of 58 land wells in the country's southern region.

Due to due to general weakness in motorcycles, Wall Street expects Harley Davidson (HOG-$37.00) to post a single digit drop in sales for the fourth quarter when it reports on January 25. Analysts polled by Thomson Financial expect, on average, profit of 82 cents a share, with sales of $1.35 billion. Investors will be listening on the conference call for signs of inventory bloat, pricing sensitivity for used and new bikes, and the possibility of lowered earnings guidance from management.

The U.S. Food and Drug Administration granted accelerated approval for a division of Johnson & Johnson (JNJ-$66.29) to market the anti-HIV drug Intelence (etravirine) to patients resistant to other HIV therapies, the company said late Friday.

Analysts on average expect Microsoft Corp. (MSFT-$33.01) to report earnings on Thursday of 46 cents a share, on $15.9 billion in revenue for the second-quarter ended in December 2007. Highlights of next week's earnings report should include an update on Vista, the latest version of the company's Windows software, and on newer businesses such as online services and sales of the Xbox video game console during the holiday season.
The fitness equipment company Nautilus Inc. (NLS-$4.20) has finalized a $100 million line of credit with Bank of America.

Nokia Corp. (NOK-$32.60) is expected to report a rise in Q4 earnings on Thursday, boosted by buoyant demand for cheap phones in emerging markets and strong holiday sales in Europe. Analysts, on average, are expecting a profit of 52 cents per share on sales of $3.58 billion, according to a poll by Thomson Financial. Over the last four quarters, Nokia has surprised and beaten analyst expectations by an average of six cents, or 16.44 percent and remains a timely buy, according to Zack’s Investment Research.

Sears Holdings Corp. (SHLD-$89.43) plans to reorganize into several companies in another bid to pull the ailing 121-year-old retailer out the doldrums, according to a report published Saturday.

Texas Instruments Inc. (TI-$31.18) reports its fourth-quarter results on Tuesday. The vendor of cell-phone chips is expected to report earnings of 52 cents per share on revenue of $3.58 billion, according to a Thomson Financial survey.

Wachovia Corp. (WB-$30.80) is set to report results for the fourth-quarter on Tuesday. Analysts polled by Thomson Financial expect share-net of 33 cents on revenue of $7.4 billion for the fourth quarter. Lehman Brothers analyst Jason Goldberg expects provisions for losses on loans to hold back results for the fourth quarter.
An insurance broker, Willis Group Holdings (WSH-$35.99), has approached its bigger rival, Marsh & McLennan (MMC-$27.17) about a possible takeover, CNBC reported.

Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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