Continue reading Before the bell: AIG, CAT, SBUX, AMZN, TMA, GM ...

Before the bell: AIG, CAT, SBUX, AMZN, TMA, GM ... originally appeared on BloggingStocks on Thu, 12 Jun 2008 08:19:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JP Morgan downgraded Allegheny Tech (NYSE:ATI), Carpenter Tech (NYSE:CRS) and Haynes (NASDAQ:HAYN) to Neutral from Overweight based on the decline in nickel prices and its impact on nickel-based metals demand on valuation, as they find the risk/reward less attractive following the recent rally and increased raw material costs.
  
• Oppenheimer downgraded shares of Motorola (NYSE:MOT) to Underperform from Perform after channel checks indicated the company could miss Q2 handset guidance and continued market share losses.
• UBS said the risk/reward profile for owning Machinery stocks given macro challenges and valuations. The firm downgraded Caterpillar (NYSE:CAT) and Kennametal (NYSE:KMT) to Sell from Neutral and United Rentals (NYSE:URI) and RSC Holdings (NYSE:RRR) to Neutral from Buy. Additionally, shares of Paccar (NASDAQ:PCAR) were cut to Sell from Neutral and Navistar (OTC:NAVZ) was downgraded to Neutral from Buy due to weak U.S. truck demand.
  

• Jefferies cut Hercules Inc (NYSE:HPC) to Hold from Buy.
  
• Goldman downgraded Pfizer (NYSE:PFE) and DirecTV (NASDAQ:DTV) to Neutral from Buy.
  
• Regeneron (NASDAQ:REGN) was downgraded to Neutral from Outperform at Credit Suisse.

Analyst downgrades: ATI, CRS, HAYN, MOT and Machinery stocks originally appeared on BloggingStocks on Thu, 05 Jun 2008 11:20:00 EST. Please see our terms for use of feeds.

GM to sell profitable medium-duty truck unit to Navistar originally appeared on BloggingStocks on Thu, 20 Dec 2007 17:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• General Motors Corporation (NYSE: GM) is expected to announce as soon as today that it is selling its medium-duty truck unit to Navistar International Corporation (OTC: NAVZ), reported the Wall Street Journal.
• Its balance sheet is clean and straight forward, debt is less than 25% of capital, it produces over $70M a year in operating cash, pays a 3.5% dividend and buys back its stock, but, asks the Wall Street Journal's "Smartmoney Stock Screen" about Journal Communications Inc (NYSE: JRN), is this stock a bargain or perhaps a takeover candidate?

• According to two people familiar with the matter, the FTC is expected to approve the proposed $3.1B acquisition of DoubleClick by Google Inc (NASDAQ: GOOG), the Washington Post reported.

• According to an inside source, Earthlink Inc (NASDAQ: ELNK) executives, including an executive VP and a VP, have left the company over the last week, DSLreports.com noted. The company is also cutting VOIP and Muni-Wifi services, in addition to the previously announced job cuts.

Newspaper wrap-up: FTC expected to approve Google-DoubleClick deal originally appeared on BloggingStocks on Thu, 20 Dec 2007 08:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lululemon (NASDAQ: LULU) was initiated with a Neutral rating at Merrill Lynch. CIBC believes the company is well-positioned to replace its Canadian success in the U.S. market and started shares with a Sector Outperformer rating and $39 target. The stock was started at Wachovia with a Market Perform rating on valuation.
• Citigroup finds Domino's Pizza (NYSE: DPZ) compelling for long-term investors given the company's solid cash flows, above-average margins, and international growth opportunity. The firm initiated shares with a Buy rating and $22 target.
• RBC Capital started shares of Kenexa Corporation (NASDAQ: KNXA) with a Sector Perform rating and $32 target, citing lack of visibility into the company's product roadmap.
• RBC initiated shares of Omniture Inc (NASDAQ: OMTR) with an Outperform rating and $33 target. The firm believes Omniture is well-positioned given cross selling opportunities, best in class products, strong secular trends, and expanding client roster.
• News Corporation (NYSE: NWS) was initiated with a Buy rating and added to Stifel's Select List. The firm believes the FOX TV Network, stations and FOX News can garner an incremental recurring 100% margin retransmission and affiliate fees totaling $1B by 2010, adding that its sum-of-the-parts model for News Corp captures the value of $8B of "hidden" assets, yielding a fair market value of $30-$31.

• CRT Capital initiated shares of Navistar (NASDAQ: NAVZ) with a Buy rating and $75 target.
• JP Morgan started shares of Dice Holdings (NYSE: DHX) with an Overweight rating.
• Think Equity started shares of Whole Foods Market Inc (NASDAQ: WFMI) with an Accumulate rating and $51 target.

Analyst initiations 9-5-07: LULU, DPZ, KNXA, OMTR and NWS originally appeared on BloggingStocks on Wed, 05 Sep 2007 11:22:00 EST. Please see our terms for use of feeds.

Baidu.com Inc. (NASDAQ: BIDU) -- volatility Elevated as BIDU rallies 18% on 2Q performance. BIDU, a Chinese language internet search provider, is recently trading up $33.16 to $216.39. Thomas Weisel says, "Raising 12-month price target to $250. We remain positive on the long-term fundamentals of the paid search industry in China." BIDU August option implied volatility of 56 is above its 26-week average of 48 according to Track Data, suggesting larger risks.

Navistar International Corp. (NASDAQ: NAVZ) -- volatility stays Flat on Shareholder Rights Plan. NAVZ, a truck, bus and engine manufacturer, recently filed an 8-K that created a shareholder rights plan poison pill through July 23 2008. Wachovia said on July 24 2007, "according to documents filed with the SEC, an entity (Harbinger Capital Partners) has acquired approximately 14.3% of NAVZ." WB goes on to say "NAVZ management apparently believes its current share price is undervalued. We maintain our Market Perform and $70-73 valuation range." NAVZ over all option implied volatility of 47 is near its 26-week average according to Track Data, suggesting flat risk.

Daily Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 7-26-07: BIDU volatility elevated on rally originally appeared on BloggingStocks on Thu, 26 Jul 2007 12:07:00 EST. Please see our terms for use of feeds.

• In the trucking industry, FTN Midwest initiated shares of Cummins Inc (NYSE: CMI) and Navistar International Corp (NASDAQ: NAVZ) with Hold Ratings and Oshkosh Truck Corp (NYSE: OSK) and PACCAR Inc (NASDAQ: PCAR) with Buy ratings.
• ROO Group (NASDAQ: RGRP) was initiated with a Buy rating and a $3.75 target at Think Equity, which believes RGRP is positioned to capitalize as the Internet continues to grow as a broadcast medium for video.
• Soleil initiated shares of Accuray Inc. (NASDAQ: ARAY) with a Buy rating and $30 target. The company is Soleil's top pick in radiation oncology.
• Soleil also initiated shares of TomoTherapy Inc. (NASDAQ: TTPY) with a Buy rating and $25 target, as the firm believes all-in-one imaging and radiation oncology system in HiArt could become the new standard of care.

• Elan Corp (NYSE: ELN) was initiated with an Outperform rating and $40 target at Leerink Swann, which added shares to the firm's Focus List as it is positive on the Tysabri opportunity.
• Cree Inc (NASDAQ: CREE) was initiated with a Buy rating and $50 target at Amtech, as the firm believes the time for LED adoption has finally arrived and will accelerate in the future.
• Nollenberger initiated shares of ZipRealty (NASDAQ: ZIPR) and Move, Inc (NASDAQ: MOVE) with Neutral ratings.
• CIBC World Markets initiated shares of Whole Foods Market Inc. (NASDAQ: WFMI) with a Sector Underperformer rating and $38 target, expecting the company to be impacted by increasing competition.
• BMO Capital Markets initiated shares of Intel Corp. (NASDAQ: INTC) with an Outperform rating and $10 target.

Analyst initiations 6-1-07: WFMI, INTC, Oshkosh ... originally appeared on BloggingStocks on Fri, 01 Jun 2007 11:38:00 EST. Please see our terms for use of feeds.

Apple Inc. (NASDAQ: AAPL) -- May OTM puts more expensive than calls, suggesting downside Hedging. AAPL is expected to report EPS of 64 cents after the close tonight. AAPL call option volume of 56,543 contracts compares to put volume of 25,270 contracts. AAPL May 105 calls have traded 172 times on transaction volume 20,030 contracts. AAPL May 85 puts have traded 133 times on transaction volume of 8,659 contracts according to Track Data. AAPL May 85 puts are bid 55 cents, above its theoretical value of 42 cents. AAPL May 105 calls are bid 45 cents, below its theoretical value of 49 cents. AAPL options suggest downside hedging tendencies.

Navistar Intl. (NASDAQ: NAVZ) -- elevated implied volatility suggests Risk as NAVZ at record High. NAVZ, a truck, bus, engine manufacturer, is recently up $1.13 to $57.93. MAN AG, Hino, F, Fiat, Isuzu, PCAR, OSK, General Motors (NYSE: GM), DaimlerChrysler (NYSE: DCX) and Iveco have been frequently mentioned as interested in doing acquisitions, partnerships or bolt-on deals. NAVZ over all option implied volatility of 46 is above its 26-week average of 41 according to Track Data, suggesting larger price risks.

Option volume leaders today are: Intel Corp. (NASDAQ: INTC) and Apple Inc. (NASDAQ: AAPL).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 4-25-07: AAPL options active originally appeared on BloggingStocks on Wed, 25 Apr 2007 11:51:00 EST. Please see our terms for use of feeds.