BloggingStocks

Step aside popular stocks, it's time for smaller more volatile plays

Timothy Sykes — 2008-05-19T13:00:00+00:00

Filed under: Major movement, Google (GOOG), Yahoo! (YHOO), Apple Inc (AAPL), Pfizer (PFE), Intel (INTC), Ford Motor (F), Citigroup Inc. (C), Technical Analysis, Stock screen, Stocks to Buy

Forget about overwhelmingly random stock market noise and small daily percentage moves exemplified by the likes of all the most popular names such as Yahoo! Inc (Nasdaq: YHOO), Citigroup Inc (NYSE: C), Pfizer Inc (NYSE: PFE), Google Inc (Nasdaq: GOOG) and Apple Inc (Nasdaq: AAPL). Don't be fooled by the all-too-frequent daily commentary-those stocks are really only good for long-term investors and the few truly professional traders out there.

If you're neither, focus more on market inefficiencies because not only are they more predictable, but they're ideal for smaller investors and traders thanks to their illiquidity. Meaning the market offers up these high profit probability opportunities that the big boys can't and won't take advantage of-they're strictly for us little guys.

I'm talking about price moves created by the quirks of the finance industry itself-namely the media circus, stock promoters and hype that influence the great derided microcap market. For example, when a CNBC reporter inadvertently suckers amateurs by pumping a penny stock (good short selling opportunity as the stock is now down 50% in a month) or when a stock promoter is paid to hype a stock (another one down 50%+ in one month since).Right now there are several tiny stocks being promoted, but I won't even mention them because their promoters haven't done a good enough job of pumping their prices high enough to make them worthwhile shorts. Surging commodity prices have done an infinitely better job helping push microcaps like Mexco Energy Corp (AMEX: MXC), Pyramid Oil Co (AMEX: PDO), China Precisions Steel Inc (Nasdaq: CPSL), Cardero Resource Corp (AMEX: CDY), Solarfun Power Holdings (Nasdaq: SOLF) and Fieldpoint Petroleum Corp (AMEX: FPP) up exponentially.

Unfortunately, instead of learning the catalysts for such surges, many wannabe technical analysts / traders only look at the charts-and considering the speed and strength of these run-ups-many short these stocks too early, inevitably helping to create mammoth short squeezes. Just ask those who shorted Pyramid Oil after its 2-week run-up from $4 to $10, now $16!

Each day on my blog, I cover these kinds of exponential movers and the most important lesson I can teach is that hype pushes these stocks further than anyone expects. I assure you these stocks will crumble-as the vast majority of surging microcaps inevitably do (see some historical examples HERE)-but considering many of these latest runups are due to solid earnings reports, do not mistake them for pump-and-dumps that can collapse within hours or days.

For now, let these kids play-some are even good to play form the long side, if you're willing to take on that kind of risk (not me!). Call them in from recess-or short sell them-only when it begins to get dark outside-meaning when commodity prices aren't in such an overwhelmingly bullish uptrend.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.

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Analyst upgrades: U.S. semiconductors, TOO and OPLK

Eric Buscemi — 2008-05-19T11:25:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Amazon.com (AMZN), Intel (INTC), Texas Instruments (TXN), SanDisk Corp (SNDK)

MOST NOTEWORTHY: U.S. semiconductors, Teekay Offshore and Oplink Communications were today's noteworthy upgrades:

Goldman upgraded the U.S. Semiconductor Sector, including Intel (NASDAQ: INTC) and SanDisk (NASDAQ: SNDK) to Attractive from Neutral. The firm believes semi fundamentals are poised to improve in 2H08 and that valuations are reasonable.
Wachovia upgraded Teekay Offshore (NYSE: TOO) to Outperform from Market Perform based on valuation and increased distribution growth outlook following the acquisition of an additional 25% ownership interest in Teekay Offshore Operating, L.P.
Merriman upgraded shares of Oplink Communications (NASDAQ: OPLK) to Buy from Neutral as it believes the company is an attractive takeover target following the Finisar (NASDAQ: FNSR) and Optium (NASDAQ: OPTM) merger, given its low-cost Chinese manufacturing capacity and attractive $140M cash balance.

OTHER UPGRADES:

Goldman upgraded Amazon.com (NASDAQ: AMZN) to Buy from Neutral and added shares to its Conviction Buy List.
William Blair raised Interpublic Group (NYSE: IPG) to Outperform from Market Perform.
Citigroup upgraded Texas Instruments (NYSE: TXN) to Buy from Hold.

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Before the bell: INTC, LEH, COP, GM, GS, BRK.a ...

Melly Alazraki — 2008-05-19T08:20:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Apple Inc (AAPL), Intel (INTC), General Motors (GM), Berkshire Hathaway (BRK.A), Employees, Comcast Cl'A' (CMCSA), ConocoPhillips (COP), Goldman Sachs Group (GS), Morgan Stanley (MS), Time Warner Cable (TWC), Lehman Br Holdings (LEH)

Before the bell: Stock futures mixed as Microsoft resumes talks with Yahoo

The New York Times Bits blog says that according to several label executives, Apple Inc. (NASDAQ: AAPL) has approached some of the major music labels to try to expand the variety of ringtones and other musical features for the iPhone. The negotiations are very active right now and a final deal has not been set, but will likely be during the summer, but after June 9. Ringtones are quite a profitable market, and Apple wanting to have ringtones from major label makes total sense. Apple also wants to offer Answer Tones for the iPhone.

Intel Corp (NASDAQ: INTC) said Monday its venture capital arm has invested 50 million ringgit ($16 million) in Malaysia's Green Packet Berhad to help develop the country's first nationwide high-speed WiMAX network. Already earlier this month, Intel Capital along with Google Inc (NASDAQ: GOOG), Comcast Corp (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), and Bright House Networks agreed to invest $3.2 billion into a new company to speed up deployment of the next-generation mobile WiMAX network. But that's not all. Intel Capital also expects to close half a dozen deals in India this year, its regional head said on Monday.

Warren Buffett is apparently on the prowl for another acquisition. The Oracle of Omaha has begun his European tour Monday, looking for possible acquisitions for his Berkshire Hathaway Inc. (NYSE: BRK.A).

General Motors Corp. (NYSE: GM) shares are up over 1% after a tentative accord was reached May 16 with the United Auto Workers. American Axle & Manufacturing Holdings Inc. (NYSE: AXL) workers start voting Monday on a proposed contract that also calls for wage cuts and buyouts at five American Axle plants in New York and Michigan. This could end the 83-day strike that has slowed output at GM, the partsmaker's biggest customer.
State-run Saudi Arabian Oil Co., or Saudi Aramco, and ConocoPhillips (NYSE: COP) said Friday they have approved continued funding for the development of a refinery that will process 400,000 barrel-per-day of crude supplied by Saudi Aramco in Saudi Arabia's Red Sea city of Yanbu.

Citigroup slashed its earnings outlook for Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS) and Lehman Brothers Holdings Inc (NYSE: LEH), which also Friday announced it is cutting 5%, or 1,400 people, of its staff. Citi said tough operating environment will be the culprit of lower earnings and the analyst expects significant asset sales.

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CDW tinkers with social networking

Tom Taulli — 2008-05-16T12:36:00+00:00

Filed under: Microsoft (MSFT), Hewlett-Packard (HPQ), Intel (INTC), Small business

At the Warrillow conference - which focuses on small business - I saw how a variety of companies are making attempts to enter social media.

Take CDW, which is a mega information technology (IT) distributor. About a year ago, the company launched Conduit. Basically, it is a social networking site focused on small business IT pros.

According to Lauren McCadney - who heads up the effort - the site has grown organically, as members have connected with each other to solve problems. This is important since small companies usually have one or two IT pros in their organization. So yes, things can get isolated and loney.

But there were risks. After all, user-generated content can be tricky. What if members make bad comments about CDW?

"Members have good manners on the site," said McCadney. "It hasn't been a problem." In fact, there is a separate section, called CDW Talk, where members can vent.

Conduit has also found ways to monetize things, such as through sponsorships. For example, there is a makeover contest; that is, a small business can win up to $50,000 in services and support from Intel (NASDAQ: INTC), Hewlett-Packard (NYSE: HPQ) and Microsoft (NASDAQ: MSFT).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Closing Bell: Economic data and deals power gains

Jon Ogg — 2008-05-15T16:29:00+00:00

Filed under: Intel (INTC), CBS Corp 'B' (CBS), EMC Corp (EMC)

The markets got some extra relief today as weekly jobless claims only rose by 6,000 to 371,000. The Philly Fed also showed that manufacturing contracted slower than expected as output fell by 0.7% in April. Below are the unofficial closing prices for major index levels:

DJIA 12,988.91 +90.53 +0.70%
S&P500 1,423.28 +14.62 +1.04%
NASDAQ 2,533.73 +37.03 +1.48%
10 Yr Bond(%) 3.8430% -0.0950
52-WEEK LOWS
TOP ANALYST CALLS

China Architectural Engineering, Inc. (AMEX: RCH) enjoyed another massive day as its stock rose another 23% to $10.17 late in the day based on construction, architecture, and engineering needs that will be necessary in China after that earthquake.

Shares of CNET Networks Inc. (NASDAQ: CNET) were up 43% at $11.37 after CBS Corporation (NYSE: CBS) agreed to acquire the company in a deal valued at $11.50 per share.

Intel Corporation (NASDAQ: INTC) shares were up over 4.5% at $24.95 in late day trading after Lehman raised its price target on the company.

Salary.com, Inc. (NASDAQ: SLRY) saw a 32% drop late in the day to $4.20 after its earnings missed expectations, guidance being off. It announced expenses will be higher for sales and marketing, and also suffered a host of analyst downgrades.

VMware, Inc. (NYSE: VMW) rose by almost 7% to $71.00 late in the day after the company's first shareholder meeting. This also pulled up parent EMC Corporation (NYSE: EMC) by almost 7% today to $17.84 as it still holds north of 80% of the stock.

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Before the bell: CBS, CNET, IACI, UAUA, INTC, PALM, MSFT

Melly Alazraki — 2008-05-15T08:25:00+00:00

Filed under: Before the bell, Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Intel (INTC), IAC/InterActiveCorp (IACI), CBS Corp 'B' (CBS), Research in Motion (RIMM), US Airways Group (LCC), Palm Inc (PALM), UAL Corp (UAUA)

Before the bell: Futures higher as investors await data

CBS Corp. (NYSE: CBS) announced Thursday it has signed a deal to buy CNet Networks Inc. (NASDAQ: CNET) for $11.50 a share in cash. CNet operates not only the CNET site, but also ZDNet, GameSpot.com, TV.com, mp3.com and others. The deal values CNet at about $1.8 billion and push CBS to among the 10 most popular Internet companies in the United States. CBS shares are down 2.9% in premarket trading while CNET shares are of course up over 42% to $11.31.

IAC/InterActiveCorp (NASDAQ: IACI)'s Ask.com has bought Lexico Publishing Group LLC, the parent of Dictionary.com, Thesaurus.com and Reference.com among other sites. Earlier this year, Lexico already agreed to be sold to Answers Corp (NASDAQ: ANSW), but the latter couldn't secure the necessary funds. Now, Lexico sold itself to Ask.com, for an undisclosed amount, although the number people are throwing around is $100 million. Could this acquisition help IACI gain -- even a little -- on market leader Google?

United Airlines (NASDAQ: UAUA) and Continental Airlines Inc. (NYSE: CAL), dropping ideas of a merger, are now talking about forming an alliance to still gain some benefits of working together. United appears relentless in its attempts to help its bottom line through a merger or an alliance. While talking to Continental about an alliance, it is still negotiating with US Airways Group (NYSE: LCC).

The Register reports that an Intel (NASDAQ: INTC) executive claimed a future Apple Inc. (NASDAQ: AAPL) iPhone will be based upon the new Intel chip, the Atom processor. In addition, there will be many more Atom-based devices coming to the market in the year ahead, mostly a bit bigger than the iPhone. There are current problems with the Atom processor though that may not fit the iPhone, mostly power efficiency. So either the Atom will improve, the iPhone will grow, or the executive will keep on saying things...

And just what Palm Inc. (NASDAQ: PALM) shares needed when the company already seems to be fighting a losing battle in the smartphone business against such formidable rivals as Apple and Research in Motion -- a downgrade. Palm was downgraded to Sell from Neutral at UBS. Could the Palm Linux-based phone, probably to launch in the first half of 2009 at the earliest, be able to combat?

Microsoft Corp. (NASDAQ: MSFT) said late Wednesday that U.S. sales of Xbox 360 video game system have topped 10 million units since its launch. Worldwide, the system has sold more than 19 million units.

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Little impact seen for Intel (INTC) from Chinese quake

Brent Archer — 2008-05-14T14:51:00+00:00

Filed under: Good news, Intel (INTC), China, Applied Materials (AMAT), Options, Technical Analysis

Intel (NASDAQ: INTC) shares are trading higher today in light of a BusinessWeek article that downplayed the economic impact of the recent Chinese earthquake on companies with outposts in that part of China, a list which includes Intel. Not hurting INTC today is a weak earnings outlook from Applied Materials (NASDAQ: AMAT), which is often seen as a bellweather for technology companies. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on INTC.

After hitting a one-year high of $27.99 in December, the stock hit a one-year low of $18.05 in January. INTC opened this morning at $23.85. So far today the stock has hit a low of $23.76 and a high of $24.29. As of 12:15, INTC is trading at $24.16, up $0.40 (1.7%). The chart for INTC looks bullish and deteriorating slightly, while S&P gives the stock a neutral 3 Stars (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $21 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.7% return in just two months as long as INTC is above $21 at July expiration. Intel would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.

Intel hasn't been below $21 by more than a few cents since March and has shown support around $22 recently. This trade could be risky if the company's earnings (due out in mid-July) disappoint, but even if that happens, that position could be protected by support the stock might find from its 50-day moving average, which is currently at $22 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AMAT. He does control a bullish hedged position in INTC.

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Amkor Technology (AMKR): Share price cycles in bullish 'flag'

Larry Schutts — 2008-05-08T12:28:00+00:00

Filed under: Earnings reports, Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN), Technical Analysis, Stocks to Buy

Amkor Technology (NASDAQ: AMKR) is a leading provider of semiconductor assembly and test services. The firm offers semiconductor companies and electronics manufacturers a complete set of microelectronics manufacturing services, including die bonding, wire bonding, chip encapsulation, and verification of function, current, timing, and voltage. Clients include IBM (NYSE: IBM), Intel (NASDAQ: INTC) and Texas Instruments (NYSE: TXN).

The company surprised the Street last week, when it reported Q1 EPS of 36 cents and revenues of $699.5 million. Analysts had been looking for 26 cents and $684.3 million. The CEO attributed success to customer demand for wireless communications and networking applications. Management also guided Q2 EPS to 32-36 cents (28 cent consensus) and Q2 revenues to about $706-$720 million ($700.6M consensus).

The stock popped on the news and then settled into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "buy", five "holds" and one "sell". Analysts see a 15% growth rate, through the next year. The AMKR P/E ratio (9.24), PEG ratio (0.93), Price to Sales ratio (0.78), Price to Book ratio (2.84), Price to Cash Flow ratio (3.98), Price to Free Cash Flow ratio (5.60), EPS Growth rate (100.00%) and Return on Equity (42.70%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 57% of the outstanding shares. Over the past 52 weeks, AMKR has traded between $6.14 and $16.29. A stop-loss of $9.85 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Newspaper wap-up: Tech firms to invest in wireless

Laurie Pasternack — 2008-05-07T08:05:00+00:00

Filed under: Newspapers, Magazines, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Intel (INTC), Sprint Nextel Corp (S), Comcast Cl'A' (CMCSA), Wachovia Corp (WB)

MAJOR PAPERS:

The Wall Street Journal reported that an alliance of cable, Internet and chip titans will announce plans to invest $3.2B in a company that will deliver Web access for laptops and cellphones using WiMax. The venture, valued at over $12B, includes Sprint Nextel Corporation (NYSE: S) and Clearwire Corporation (NASDAQ: CLWR) and will be backed by Comcast Corporation (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), Intel Corporation (NASDAQ: INTC) and Google Inc (NASDAQ: GOOG).
According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry's boom, will leave Wachovia Corporation (NYSE: WB) within the next week, the Wall Street Journal reported.

WEB SITES:

Bloomberg reported that the Department of Justice is probing whether UBS AG (NYSE: UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was "briefly detained" by authorities.
Bloomberg also reported that Vallejo, California's city council voted to go into bankruptcy. Officials said that after talks with labor unions failed to win salary concessions from police and fire fighters, the city does not have enough money to pay its bills.
According to a rumor, TechCrunch reported that the Yahoo Inc (NASDAQ: YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer about re-starting negotiations.

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Before the bell: Futures lower ahead of data

Melly Alazraki — 2008-05-07T07:48:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Cisco Systems (CSCO), Intel (INTC), Market matters, Walt Disney (DIS), Sprint Nextel Corp (S), Comcast Cl'A' (CMCSA), Economic data, Time Warner Cable (TWC), Oil, Housing

U.S. stock futures were lower early Wednesday as investors, worried about inflation, await data on pending home sales and labor costs. Earnings news in focus this morning comes from tech bellwether Cisco Systems, which gave a cautious outlook, and from Walt Disney, which reported good results.

Despite starting the day on a down note, as oil futures remained high, U.S. stocks closed higher on Tuesday, mostly due to some reassuring comments made on a Fannie Mae (NYSE: FNM) conference call. The Dow industrials ended up 51 points, or 0.40%, the S&P 500 rose 10 points, or 0.77%, and the Nasdaq Composite finished 19 points, or 0.78%, higher.

Today investors will finally have some data to sink in their teeth. First quarter labor productivity and unit costs is out at 8:30 a.m. EDT. Economists expect productivity to rise 1.5% in the first quarter, but for unit labor costs to climb as well.

Also on the docket today are March pending home sales data to be released at 10:00 a.m. and which probably fell another 1%.

After that, weekly crude inventories are scheduled to be reported. Crude futures have held up near $122 a barrel despite the dollar advancing against the yen and the euro.

There are many companies in focus this morning too. Cisco Systems (NASDAQ: CSCO) reported sales and earnings that exceeded analysts' expectations after the close Monday, but gave a sales guidance that was somewhat conservative.

Walt Disney (NYSE: DIS) also reported quarterly results after the market close Tuesday that also beat expectations. Interestingly, it seems that of all companies, the entertainment giant isn't getting hit by the economic slowdown as other companies do. Disney shares were up 2.3% in premarket trading.

And in deal news, Sprint Nextel (NYSE: S) and Clearwire (NASDAQ: CLWR) announced Wednesday the formation of a joint venture for the high-speed wireless network WiMax to create a $14.55 billion communications company in which Sprint will hold a 51% stake. The new company, to be named Clearwire, will receive a $3.2 billion investment from Intel Corp. (NASDAQ: INTC), Google Inc. (NASDAQ: GOOG), Comcast Corp. (NASDAQ: CMCSA), Time Warner Cable Inc. (NYSE: TWC) and Brighthouse Networks. Sprint shares are up over 7.7% in premarket trading, CLWR nearly 14.5%.

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Clearwire: Sprint-ing with $12 billion?

Tom Taulli — 2008-05-06T18:10:00+00:00

Filed under: Google (GOOG), Intel (INTC), Sprint Nextel Corp (S)

There's been lots of buzz with Sprint Nextel Corporation (NYSE: S) lately. And it's to be expected -- in light of the intense competition, heavy customer churn, and the ailing stock price. For example, there were rumors that Deutsche Telekom is mulling a buyout of Sprint. Another possibility is that the company will unwind its Nextel merger.

Such things may happen. But, in the meantime, it looks like there may be another mega deal. According to a piece in the Wall Street Journal [a paid publication], it looks like Sprint is about to announce a $12 billion joint venture with Clearwire Corporation (NASDAQ: CLWR). Some of the key investors would include Google, Inc. (NASDAQ: GOOG) and Intel Corporation (NASDAQ: INTC).

Essentially, the new entity will roll-out a massive footprint for high-speed wireless Net access. No doubt, such a thing would be a nice thing for Google -- which needs a stronger mobile strategy -- as well as Intel, which needs to sell more chips. In other words, it's ideal for a multi-billion dollar cash call.

As for Sprint, this deal looks like a must-have. In other words, it will provide a differentiator in the tough marketplace.

There are still some big-time risks. After all, coordinating a project among a variety of heavyweights is never easy to manage.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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20 most profitable tech companies, simple strategy that crushes the market & tax rebate rewards - Today in Money 4/29

Allan Halprin — 2008-04-29T08:00:00+00:00

Filed under: Microsoft (MSFT), Cisco Systems (CSCO), Hewlett-Packard (HPQ), Intel (INTC), General Motors (GM), International Business Machines (IBM), Money and Finance Today, Merck and Co (MRK), AMR Corp (AMR), UAL Corp (UAUA), ImClone Systems (IMCL)

In the News

· Fed Seen Cutting Rates Today for 7th Time

· Visa Profits Rise 28% in First Earnings Report Since Going Public

· Gas Prices Top Economic Worries in Survey

· Merck Cholesterol Drug Rejected By FDA

· American Airlines Losing $3.3 Million a Day

· GM Plans to Cut Truck Shifts, Lay Off 3,500

· United & U.S. Airways in Advanced Merger Talks

· Homes Facing Foreclosure More Than Doubled in 1Q, No End in Sight

· Gamers Line Up for 'Grand Theft Auto' 4

· Economists Say USA in Recession

· Forever Stamp Hot as Postage Hike Nears

· Home Stores in Pain as Less People Doing Home Improvements

20 Most Profitable Tech Companies
Among Fortune 1000 techs, Microsoft remains on top, taking in $14.1 billion in earnings last year. IBM, Cisco, Hewlett-Packard and Intel round out the top five most profitable.
20 most profitable tech companies - FORTUNE

Stocks: Ready for Better Times?
The financial crisis isn't over, but by several measures investors are letting go of their worst fears.
Stocks: Ready for Better Times? - BusinessWeek

The Simple Strategy That Crushes the Market
Many brilliant minds have dedicated decades in pursuit of an investing strategy that can beat the market consistently. Here is one that shouldn't work, but it does.
The Simple Strategy That Crushes the Market - Motley Fool

Tax Rebate Rewards
Retailers are rolling out the welcome mat. Here are some of the deals some top retailers are offering.
Retailers Offer Added Perks for Tax Rebates (Deal of the Day: Personal Finance) at SmartMoney.com

Tween Sensations Courting Controversy
With Miley Cirus' recent embarrassment over Vanity Fair photos, Forbes looks at the impact of teen star's more adult or controversial photos. They include Vanessa Hudgens, Daniel Radcliffe, Jamie Lynn Spears. Shia Laboeuf, Haley Joel Osment, Lindsay Lohan and Brooke Shields.
Who's Minding Miley? - Forbes.com In Pictures: Tween Sensations Courting Controversy - Forbes

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Anadigics (ANAD): Shares define bullish 'pennant'

Larry Schutts — 2008-04-28T10:47:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Intel (INTC), Motorola (MOT), Technical Analysis, Stocks to Buy

Anadigics (NASDAQ: ANAD) makes gallium arsenide (GaAs) and indium phosphide (InP) radio frequency integrated circuits for the broadband wireless and wireline communications markets. The physical properties of GaAs and InP allow the firm to make chips that are smaller, faster and more energy efficient than the usual silicon-based devices. The company focuses on applications for wireless local area networks, cable set-top boxes, cell phones, cable television systems, microwave systems and fiber-to-the-premises communications systems. Customers include Intel (NASDAQ: INTC) and Motorola (NYSE: MOT).

The firm surprised the Street last week, when it reported Q1 EPS of 15 cents and revenues of $74.4 million. Analysts had been looking for ten cents and $69.2 million. Management also guided Q2 EPS to 16-17 cents (13 cent consensus) and Q2 revenues to $77-$79 million ($72.96M consensus). Roth Capital subsequently reiterated its "buy" recommendation on ANAD and Charter Equity upgraded the stock to "market perform".

The shares popped on the news and are now forming a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers now recommend the issue with six "strong buys", two "buys" and five "holds". Analysts see a 22% growth rate, through the next year. The ANAD Price to Sales ratio (2.71), Price to Book ratio (2.67) and EPS Growth rate (0.00 to 0.15 yr/yr) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $5.85 and $19.53. A stop-loss of $9.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Cymer (CYMI): Prices define bullish 'pennant' formation

Larry Schutts — 2008-04-25T12:52:00+00:00

Filed under: Earnings reports, Intel (INTC), International Business Machines (IBM), Advanced Micro Dev (AMD), Texas Instruments (TXN), Technical Analysis, Stocks to Buy

Cymer (Nasdaq: CYMI) makes excimer light sources for manufacturers of photolithography tools in the semiconductor equipment industry. It offers field support products, customized to support chipmaker customers in their advanced wafer patterning processes. It also provides deep ultraviolet light sources to lithography tool makers, who integrate the sources into their wafer steppers and scanners for subsequent sale to chipmakers. Cymer has installed more than 3,000 light sources around the world, in plants run by the likes of Advanced Micro Devices (NYSE: AMD), IBM (NYSE: IBM), Intel (NASDAQ: INTC) and Texas Instruments (NYSE: TXN).

Investors were pleased earlier in the week, when the firm announced a $100 million buyback program and then issued a solid quarterly summary. Cymer reported Q1 EPS of 41 cents and revenues of $124 million. Analysts had been looking for 35 cents and $119.3 million. Management also said Q2 revenues would be comparable to the Q1 total of $124 million ($116.6M consensus) and that gross margins would hold at approximately 48%.

CYMI shares popped on the news and have since been consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", five "buys" and three "underperforms". Analysts see a 35% growth rate, through the next year. The CYMI P/E ratio (11.47), Price to Sales ratio (1.61), Price to Book ratio (1.63), Price to Cash Flow ratio (8.09), Price to Free Cash Flow ratio (9.41) and Operating Margin (20.01%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $22.86 and $44.73. A stop-loss of $23.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Microsoft fails to wow Wall Street

Jonathan Berr — 2008-04-24T17:34:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), Intel (INTC), International Business Machines (IBM)

Shares of Microsoft (NASDAQ: MSFT) fell in after-hours trading after the world's largest software maker failed to wow investors.

Net income at the Redmond, Wash., company fell to $4.39 billion, or 47 cents a share, on flat revenue of $14.5 billion. Analysts had expected profit of 44 cents on revenue of $14.5 billion. Revenue at Microsoft's Business Division, Client and Server and Tools businesses, the company's largest, fell during the quarter. The others, including the Entertainment and Devices unit, rose.

Pacific Crest analyst Brendan Barnicle told Bloomberg News that "people were expecting more of a blowout. It's a decent quarter. It's not a great quarter by any means, and people were expecting a great quarter.''

The earnings are puzzling because, as Bloomberg notes, "A report from researcher IDC showed personal-computer purchases exceeded forecasts in the quarter." Moreover, both IBM (NYSE: IBM) and Intel (NASDAQ: INTC) reported better-than-expected results.

No wonder Chief Executive Steve Ballmer is pushing so hard to buy Yahoo (NASDAQ: YHOO) to bolster Microsoft's growth prospects.

Microsoft expects profit in the quarter ending June 30 to be 45 cents to 48 cents per share on revenue of $15.5 billion to $15.8 billion. Analysts expected profit of 46 cents on revenue of $15.56 billion, according to Thomson Financial. Profit for the 2009 fiscal year will be $2.13 to $2.19 per share on revenue of $66.9 billion to $68 billion. That's greater than the average forecast of Wall Street analysts of profit of $2.10 and revenue of $66.5 billion, according to Reuters.

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Intel (INTC) still has the intelligence edge

Joseph Lazzaro — 2008-04-24T14:12:00+00:00

Filed under: Intel (INTC), Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. With this in mind, Intel is worth an evaluation.

Intel (NASDAQ: INTC) is the world's largest semiconductor maker, as measured by revenue and unit shipments, and is the dominant microprocessor manufacturer for personal computers.

In general, analysts expect F2008 revenue to increase 5-7%, after an 8% increase in F2007. The conventional wisdom in semiconductor analysis land now suggests that smaller/more-portable computer forms and media-rich PDAs will drive strong PC and PDA microprocessor sales.

Further, Intel remains the leader in next-generation chip technology, and its product mix remains superior. Gross margins should increase, as a result of lower unit costs and improved plant utilization. Also, high-performance chip prices should increase noticeably.

Another tailwind: the computer rehab cycle. Due to the anemic-growth U.S. economy, U.S. PC sales will not be as robust, but this will be offset somewhat by consumers 'upgrading the inside' by increasing processor power and RAM in their current machines, as opposed to buying new ones. The Reuters F2008/F2009 EPS consensus estimates for INTC are $1.25/$1.52.

Finally, when you possess market-share percentages as large as Intel's, there's always the chance that a competitor will slice at a less-protected segment. However, this year, for a variety of factors, less competition is expected.

The risks? Analysts are keeping an eye on the possibility of further erosion in PC sales, due to the slumping U.S. economy and INTC's core component/raw material costs.

The First Call mean rating for INTC is: Buy [36 firms]. Mean 2008 target: $27 [high: $33, low: $20].

Stock Analysis: Intel is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from INTC's shares. Sell/Stop Loss if you were to purchase shares in this company: $14.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

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Earnings highlights: Google, Intel, Coca-Cola, Pfizer, eBay, AMD and others

Trey Thoelcke — 2008-04-20T10:10:00+00:00

Filed under: Earnings reports, Google (GOOG), eBay (EBAY), Pfizer (PFE), Coca-Cola (KO), Intel (INTC), Nokia Corp. (NOK), Advanced Micro Dev (AMD), Abbott Laboratories (ABT), Xerox Corp (XRX), Reliance Steel and Aluminum (RS), Hunt(J.B.) Transport (JBHT), Intuitive Surgical Inc (ISRG)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Abbott Laboratories Inc. (NYSE: ABT) first-quarter profit soared on overseas demand for Humira.
Advanced Micro Devices Inc. (NYSE: AMD) posted a bigger-than-expected loss, its sixth straight.
Coca-Cola Co. (NYSE: KO) posted better-than-expected first-quarter results on strength overseas.
CSX Corp. (NYSE: CSX) first-quarter profit soared on strong demand for grain, ethanol, and coal.
eBay Inc. (NASDAQ: EBAY) beat first-quarter expectations but the outlook was uninspiring.
Google Inc. (NASDAQ: GOOG) first-quarter profit soared 42%, beating Wall Street estimates.
Intel Corp. (NASDAQ: INTC) first-quarter earnings slipped but exceeded expectations.
Intuitive Surgical Inc. (NASDAQ: ISRG) beat first-quarter estimates and offered a disappointing outlook.
J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) missed first-quarter estimates on rising fuel prices.
Nokia Corp. (NYSE: NOK) first-quarter profit missed expectations and it warned of a coming decline.
Pfizer Inc. (NYSE: PFE) first-quarter profits fell and missed analysts' expectations.
Reliance Steel & Aluminum Co. (NYSE: RS) lowered its second-quarter outlook.
Royal Philips Electronics posted a bigger-than-expected fall in profit on weak North America TV sales.
Wolverine World Wide Inc. (NYSE: WWW) beat earnings estimates but shareholders were not impressed.
Xerox Corp. (NYSE: XRX) posted a first-quarter loss that matched analysts' estimates.

Also, Jim Cramer doesn't think General Electric (NYSE: GE) is the bellwhether some take it for. Goldman Sachs (NYSE: GS) is pessimistic about this earnings season. And here's a look at some companies that reported this week that could bounce back after the recession, as well as earnings expectations for "barometer" companies reporting next week.

Upcoming results to watch for include Bank of America (NYSE: BAC), Halliburton (NYSE: HAL), Merck (NYSE: MRK) Texas Instruments (NYSE: TXN), AT&T (NYSE: T), DuPont (NYSE: DD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Boeing (NYSE: BA), UPS (NYSE: UPS), 3M (NYSE: MMM), PepsiCo (NYSE: PEP), Microsoft (NASDAQ: MSFT), Motorola (NYSE: MOT), and McDonald's (NYSE: MCD).

Visit AOL Money & Finance for more earnings coverage.

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AMD (AMD) heads toward oblivion

Douglas McIntyre — 2008-04-18T08:35:00+00:00

Filed under: Earnings reports, Deals, Intel (INTC), Advanced Micro Dev (AMD)

AMD (NYSE:AMD) announced its sixth straight loss. For the first quarter of 2008, the company reported a net loss of $358 million, or 59 cents a share, compared with a net loss of $611 million, or $1.11 a share, for the year-earlier period.

MarketWatch writes "Revenue was $1.5 billion, up from $1.23 billion for the year-ago period. Analysts had expected the chipmaker to report a loss of 48 cents a share on revenue of $1.52 billion, according to FactSet Research."

The company's survival as an independent company remains at stake. The firm said that second quarter results would be down.

AMD still carries long-term debt of over $5 billion and with operating losses it remains difficult to see how the company can attack an amount of that magnitude while still investing aggressively in R&D. Larger rival Intel (NASDAQ:INTC) has the balance sheet and cash flow to continue to launch new chips, many of which have features superior to those of AMD products.

AMD may have only two choice now. One would be to sell the company to a more successful chip operation like Nvidia (NASDAQ:NVDA). The other is to auction off its graphics chip operation ATI, and hope that it can get enough money to help take down a large portion of its long-term debt obligations.

Either way, AMD is unlikely to look that same as it does now by the end of the year.

Douglas A. McIntyre is an editor at 247wallst.com.

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Closing bell: Forget $115 oil, techs & financials lead 200 point surge

Jon Ogg — 2008-04-16T16:18:00+00:00

Filed under: Intel (INTC), JPMorgan Chase (JPM), Potash Corp. of Saskatchewan (POT)

The markets were able to shake everything off today after techs and financials delivered more hope than economics could deliver in fear. Housing construction gave levels not seen in more than 15-years and the Fed's Beige Book showed that the economy deteriorated further with weak spending, uncertainty, housing and credit woes. Even $115/barrel oil today didn't spook those hoping for a recovery. Even multi-year inflation in China and Europe didn't spook investors. Below are today's unofficial closing levels for US index averages:

DJIA 12,619.27 (+256.80; +2.08%)
S&P500 1,364.69 (+30.26; +2.27%)
NASDAQ 2,350.11 (+64.07; +2.80%)
10YR-TBOND 3.696% (+0.126%)
52-WEEK LOWS
TOP 10 ANALYST CALLS.

CV Therapeutics, Inc. (NASDAQ: CVTX) was a major gainer today after the company secured up to $185 million in financing from TPG-Axon. Shares were up over 17% to $8.76.

Intel Corporation (NASDAQ: INTC) was the main tech bellweather after earnings last night when it said core operations were strong and predicted margins remaining strong for 2008. Shares closed up almost 6% at $22.13.

JPMorgan Chase & Co. (NYSE: JPM) led the financial sector higher today. The company's 50% drop in earnings was actually above estimates and Jamie Dimon came out with comments that led many to believe the worst is close to over in the battered financial stock writedowns. Shares were up 6% at $44.79 today.

Potash Corp. of Saskatchewan, Inc. (NYSE: POT) was the big winner in agriculture today, after the company's venture and partners scored a huge price increase to China's Sinofert. Shares surged by more than 7% to $198.49, a new high.

Pozen, Inc. (NASDAQ: POZN) skyrocketed today on news that migraine drug Treximet has received FDA approval. Pozen rose some 28% to $13.54.

Seagate Technologies (NYSE: STX) was one of the disappointments in technology today. The company beat earnings but guided under expectations after a history of being an earnings winner. Internal and external storage demands from Joe Public probably just cant last forever. Shares closed down 5.5% at $19.06.

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Marvell Tech (MRVL) rising on Intel outlook

Brent Archer — 2008-04-16T14:18:00+00:00

Filed under: Major movement, Earnings reports, Good news, Industry, Intel (INTC), Options, Technical Analysis, Marvell Technology Group (MRVL), Technology

Marvell Technology Group Ltd. (NASDAQ: MRVL) shares are trading higher after tech bellwether Intel (NASDAQ: INTC) reported a first quarter profit of $1.44 billion, or 25 cents per share, in line with analysts' estimates. While many investors were expecting weak results, INTC noted in a press release that microprocessor sales were in line with seasonal trends, which could be a good sign for MRVL. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MRVL.

After hitting a one-year high of $20.04 in July, the stock hit a one-year low of $9.77 in January. MRVL opened this morning at $10.76. So far today the stock has hit a low of $10.53 and a high of $10.95. As of 12:30, MRVL is trading at $10.91, up $0.41 (3.9%). The chart for MRVL looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $7.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just four months as long as MRVL is above $7.50 at August expiration. Marvell would have to fall by more than 30% before we would start to lose money. Learn more about this type of trade here.

MRVL hasn't been below $9.50 at all in the past year and has shown support around $10.75 recently. This trade could be risky if the company's earnings (due out in late May or early June) disappoint, but even if that happens, this position could be protected by the support the stock might find around $10, where it has bottomed out over the past four months.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MRVL. He does control a bullish hedged position in INTC.

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