• Bernstein upgraded Merck (NYSE: MRK) to Outperform from Market Perform and raised its target to $30 from $27 citing valuation and its decision to buy Schering-Plough, at what appears to be a reasonable price.
  
• RBC Capital upgraded Palm (NASDAQ: PALM) to Outperform from Sector Perform and raised its target to $12 from $5 as it believes webOS has increased its chances for Smartphone leadership and will increase its attractiveness as an acquisition target.
  
• RW Baird upgraded Alcatel-Lucent (NYSE: ALU) to Outperform from Neutral on valuation as it believes balance sheet risks are overly discounted in the stock, creating a buying opportunity. The firm has a $3 target on shares.
• Express Scripts (NASDAQ: ESRX) was raised to Buy from Hold at Argus.
  
• France Telecom (NYSE: FTE) was upgraded at Morgan Stanley to Equal Weight from Underweight.
  
• Foster Wheeler (NASDAQ: FWLT) was upgraded to Conviction Buy from Neutral at Goldman.

Continue reading Analyst upgrades, downgrades and initiations: MRK, PALM, DNA, WMT, TEVA ...

Analyst upgrades, downgrades and initiations: MRK, PALM, DNA, WMT, TEVA ... originally appeared on BloggingStocks on Fri, 13 Mar 2009 11:00:00 EST. Please see our terms for use of feeds.

Pharmaceuticals have been alive and merging. The most recent deal is this morning's news that Gilead (NASDAQ:GILD) wants CV Therapeutics (NASDAQ:CVTX), which comes on the heals Roche's purchase of Genentech(NYSE:DNA) and Merck's (NYSE:MRK) proposed merger with Schering Plough(NYSE:SGP).

Continue reading Buying the action in biotech

Buying the action in biotech originally appeared on BloggingStocks on Thu, 12 Mar 2009 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Don't count on a third day of gains; stock futures mixed

Before the bell: Don't count on a third day of gains; stock futures mixed originally appeared on BloggingStocks on Thu, 12 Mar 2009 07:45:00 EST. Please see our terms for use of feeds.

• ING upgraded Roche (OTC: RHHBY) to Buy from Hold as it believes Roche will not pay more than $100/share for Genentech (NYSE: DNA) and that the Avastin adjuvant data due April 2009 provides significant upside potential.
  
• Oppenheimer upgraded Motorola (NYSE: MOT) to Outperform from Perform on valuation as it believes sentiment is at an all-time low and the stock has limited downside. The firm set a $5 target on shares.
  
• Morgan Stanley upgraded Comerica (NYSE: CMA) to Equal Weight from Underweight citing valuation that adequately reflects credit deterioration in its commercial-heavy loan portfolio and aggressive government action.
• Cheesecake Factory (NASDAQ: CAKE) and Nucor (NYSE: NUE) were upgraded to Buy from Neutral at Goldman.
  
• Pinnacle Entertainment (NYSE: PNK) was raised to Overweight from Equal Weight at Barclays.

Continue reading Analyst upgrades, downgrades and initiations: RHHBY, MOT, RBS, DKS, MCO ...

Analyst upgrades, downgrades and initiations: RHHBY, MOT, RBS, DKS, MCO ... originally appeared on BloggingStocks on Wed, 11 Mar 2009 11:00:00 EST. Please see our terms for use of feeds.

Just as President Obama lifted the executive order banning the use of embryonic stem cells for research, Roche and Genentech (NYSE: DNA) appear to have reached an agreement on Roche's bid to acquire the 44% of DNA that Roche does not currently own.

Shares of biotech companies engaged in stem cell protocols rallied after the Obama announcement. While most of these companies are small in size with stock prices below $2 per share, the announcement gave impetus to price increases of 17% to 100%.

Continue reading Beware biotech

Beware biotech originally appeared on BloggingStocks on Tue, 10 Mar 2009 14:40:00 EST. Please see our terms for use of feeds.

• Keefe Bruyette upgraded AmeriCredit (NYSE: ACF) to Market Perform from Underperform as it believes the company's warehouse facility amendments substantially reduce the risk of bankruptcy in the near term. The firm has a $6 target on the stock.
  
• Thomas Weisel upgraded Suntech (NYSE: STP) to Market Weight from Underweight on valuation following the recent weakness. The firm has a $6 target on the stock.
  
• Banc of America/Merrill upgraded Kohl's (NYSE: KSS) to Buy from Neutral on valuation following the recent weakness and believes the company's guidance is achievable.
• Dr. Pepper Snapple (NYSE: DPS) was upgraded to Buy from Neutral at Goldman.
  
• Digital River (NYSE: DRIV) was raised to Buy from Hold at Deutsche Bank.
  
• Clorox (NYSE: CLX) was upgraded at Barclays to Equal Weight from Underweight.

Continue reading Analyst upgrades, downgrades and initiations: STP, WMT, DIS, DNA, YHOO ...

Analyst upgrades, downgrades and initiations: STP, WMT, DIS, DNA, YHOO ... originally appeared on BloggingStocks on Tue, 10 Mar 2009 10:51:00 EST. Please see our terms for use of feeds.

Continue reading Roche and Genentech (DNA) believed close to a deal

Roche and Genentech (DNA) believed close to a deal originally appeared on BloggingStocks on Tue, 10 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Stocks set for a higher open on Citi, deals

Before the bell: Stocks set for a higher open on Citi, deals originally appeared on BloggingStocks on Tue, 10 Mar 2009 07:37:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Merger Mania fails to wake buyers (BAC, C, GE, DNA, GERN, HGSI, WFC)

Closing Bell: Merger Mania fails to wake buyers (BAC, C, GE, DNA, GERN, HGSI, WFC) originally appeared on BloggingStocks on Mon, 09 Mar 2009 16:00:00 EST. Please see our terms for use of feeds.

Today was one of those strange Friday sessions where you just never felt stable. Interestingly enough, the 8.1% unemployment rate ended up moving the market up briefly, but only briefly. Most of the day was spent in red numbers with a rally that brought the markets back to a flat close.

The focus is still on what is coming out of Washington D.C. and just how long and how deep this recession is going to be.

Here are today's unofficial closing bell levels:
Dow 6,626.94 +32.50 (+0.49%)
S&P 500 683.39 +0.84 (+0.12%)
Nasdaq 1,293.85 -5.74 (-0.44%)
Top Analyst Calls

Continue reading Closing Bell: Traders fear D.C. more than massive unemployment (GME, DNA, GM, SIRI, WFC, WFMI)

Closing Bell: Traders fear D.C. more than massive unemployment (GME, DNA, GM, SIRI, WFC, WFMI) originally appeared on BloggingStocks on Fri, 06 Mar 2009 16:00:00 EST. Please see our terms for use of feeds.

Genentech (NYSE: DNA) closed at $84.70. Roche launched a hostile cash tender offer of $86.50 for DNA after DNA's board rejected Roche's $89 cash bid to buy the balance of the 44% of DNA it does not own. Roche recently sold $16 billion of bonds to finance its takeover of DNA. DNA is expected to receive final results of the adjuvant colorectal trial for Avastin (NSABP C-08) as early as mid-April 2009. DNA March option implied volatility is at 33; June is at 38; below its 26-week average of 40, according to Track Data, suggesting decreasing price movement.

NASDAQ 100-QQQQ overall implied volatility at 37; 26-week average is 46.

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

Options Update: Genentech volatility low; Roche raising capital for DNA purchase originally appeared on BloggingStocks on Thu, 19 Feb 2009 08:30:00 EST. Please see our terms for use of feeds.

One of the buzzwords that is currently in vogue in the investment community is biotechnology. This is a broad-based field that covers technological applications in any biological system, meaning humans, animals, agriculture, and medicines. This is a booming science and the investment field offers many opportunities for wealth accumulation.

If you don't want to spend countless hours trying to understand not just financials, but scientific and technical jargon that biotech companies harbor, exchange-traded funds (ETFs) may be the better choice for investing in the biotechnology industry.

An ETF is similar to buying a share of a company, but instead of getting one particular company you're investing in a bundle of companies within a particular field or specialty. It's a great way to invest in something you believe in while still hedging your bets and having a bit of diversity.

Continue reading A defensive investment: Biotechnology ETFs

A defensive investment: Biotechnology ETFs originally appeared on BloggingStocks on Sat, 07 Feb 2009 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Stocks in the news: AMZN, PG, XOM, DNA, HON, DELL, PFE ...

Stocks in the news: AMZN, PG, XOM, DNA, HON, DELL, PFE ... originally appeared on BloggingStocks on Fri, 30 Jan 2009 08:15:00 EST. Please see our terms for use of feeds.

Roche is cutting the amount of money it is offering for Genentech (NYSE: DNA) from $44 billion, or $86.50 a share, to $42 billion. The Genentech board had hoped for a higher price, but Roche may find itself hampered by the credit crisis.

According to Reuters, ""Roche had initially aimed to acquire the remaining shares through a negotiated settlement -- an offer rejected by Genentech -- and decided to appeal directly to shareholders after further talks failed to reach an agreement.". All the Genentech board can do now is recommend shareholders shun the deal.

Continue reading Roche cutting Genentech (DNA) bid, trouble for shareholders?

Roche cutting Genentech (DNA) bid, trouble for shareholders? originally appeared on BloggingStocks on Fri, 30 Jan 2009 04:05:00 EST. Please see our terms for use of feeds.

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

• Alcoa Inc. (NYSE: AA) kicked off the new season with a larger-than-expected loss due to the economic slump.
• Allscripts-Misys Healthcare Solutions (NASDAQ: MDRX) reported better-than-expected Q2 earnings.
• Apollo Group Inc. (NASDAQ: APOL) share price soared after its strong Q1 earnings and guidance.
• Apple Inc. (NASDAQ: AAPL) earnings prospects without CEO Steve Jobs led to an analyst's downgrade.
• Autodesk Inc. (NASDAQ: ADSK) lowered its guidance as business slows at an unprcedented rate.
• Bank of America Corp. (NYSE: BAC) reported terrible Q4 results and receivbed additional TARP money.
• Bunge Ltd. (NYSE: BG) lowered its 2008 earnings estimate due to soft soybean commodity markets.
• Citigroup Inc. (NYSE: C) posted a much bigger-than-expected loss and said it would split in two.
• Coventry Health Care Inc. (NYSE: CVH) offered full-year guidance that was less than analysts expectations.
• CSX Corp. (NYSE: CSX) forecast Q4 earnings would come in below analysts' expectations.
• CVS Caremark Corp. (NYSE: CVS) increased its quarterly dividend despite the recent lowered guidance.
• Deutsche Bank (NYSE: DB) reported a net loss for Q4 and the full year, dragging down the sector.
• Genentech Inc. (NASDAQ: DNA) revenue and earnings surged but were lower than analysts estimated.
• Intel Corp. (NASDAQ: INTC) Q4 results were in line with low expectations as the gross margin declined.
• JPMorgan Chase & Co. (NYSE: JPM) reported a huge drop in Q4 earnings but it stayed in the black.
• Lexmark International Inc. (NYSE: LXK) slashed its Q4 outlook and announced job cuts.
• Pentair Inc. (NYSE: PNR) efforts to limit an earnings decline led to a buy recommendation.
• Precision Cast Corp. (NYSE: PCP) earnings prospects following the recent rally led to an analyst's downgrade.

Continue reading Earnings highlights: Citigroup, Intel, JPMorgan, Alcoa, Apple and others

Earnings highlights: Citigroup, Intel, JPMorgan, Alcoa, Apple and others originally appeared on BloggingStocks on Sat, 17 Jan 2009 09:40:00 EST. Please see our terms for use of feeds.

Intel Corp. (NADSAQ: INTC) reported Thursday after the close a 90% drop in fourth-quarter earnings $234 million, or 4 cents per share, compared with $2.3 billion, or 38 cents per share, in the year-ago period. Sales slumped 23%, in line with Intel's previous guidance. Still, the results were inline with Wall Street's reduced expectations. This was enough to have the stock trade 3% higher in premarket action.

Continue reading Stocks in the news: BAC, C, INTC, DNA, GM, SCHW, LCC, BKS, K, GG

Stocks in the news: BAC, C, INTC, DNA, GM, SCHW, LCC, BKS, K, GG originally appeared on BloggingStocks on Fri, 16 Jan 2009 08:16:00 EST. Please see our terms for use of feeds.

Continue reading Stocks in the news: AAPL, JPM, BAC, GOOG, MOT, LLY, INTC, STX ...

Stocks in the news: AAPL, JPM, BAC, GOOG, MOT, LLY, INTC, STX ... originally appeared on BloggingStocks on Thu, 15 Jan 2009 08:14:00 EST. Please see our terms for use of feeds.

Genentech is among the leading biotech companies in the world. It is engaged in the discovery, development, manufacturing and commercialization of pharmaceutical products intended for treatment of previously untreatable illnesses.

In 1990, Roche acquired a 56% stake in the company. Since that time, the relationship between the two companies has been a model for similarly structured combinations.

Roche's offer of $89 per share for DNA was characterized by DNA as significantly undervaluing the company.

But this was hardly a "hit the road, Jack" response. DNA's board of directors has been encouraging the two sides to continue discussions, and recent comments suggest that the deal could come together soon.

Continue reading Don't sell your Genentech (DNA) stock just yet

Don't sell your Genentech (DNA) stock just yet originally appeared on BloggingStocks on Wed, 14 Jan 2009 11:05:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Dow drops 125 points; STX, MS, C, DNA, AA, HOG

Closing Bell: Dow drops 125 points; STX, MS, C, DNA, AA, HOG originally appeared on BloggingStocks on Mon, 12 Jan 2009 16:16:00 EST. Please see our terms for use of feeds.

The new earnings season ramps up this week as Alcoa Inc. (NYSE: AA) reports fourth-quarter results. Last week, the Pittsburgh-based producer of aluminum and alumina announced layoffs and production cuts as a reaction to the economic downturn. Analysts surveyed by Thomson Reuters expect that Alcoa will have swung to its first quarterly loss in years: $0.10 per share. That compares to a profit of $0.36 per share in the same period of the previous year. Revenues for the quarter are expected to have fallen 28.8% from a year ago to $5.3 billion. For 2008, analysts are looking for earnings of $1.40 per share on revenue of $27.6 billion, down from $2.60 per share and $30.8 billion in the previous year. Alcoa missed earnings estimates in three of the past five quarters, by 25.4% in the third quarter. The consensus recommendation of analysts shifted from buy to hold AA during the past quarter. The share price has been climbing in recent weeks, but it is 65.6% lower than a year ago.

Intel Corp. (NASDAQ: INTC) is also scheduled to report fourth-quarter results this week, one of a handful of tech stocks to do so. The number one semiconductor maker is expected to post earnings down 86.8% to $0.05 per share, and sales of $8.2 billion, down 23.3% from a year ago. Last week, Intel forecast sales for the quarter of $8.2 billion. The full-year numbers are expected to be marginally lower than a year ago, or $0.94 per share on $37.7 billion. Intel only missed earnings estimates in one of the past five quarters. Shares are about $2.00 higher than the 52-week low, but 37.2% lower than a year ago.

Continue reading The week in preview: Alcoa, Intel kick off new earnings season

The week in preview: Alcoa, Intel kick off new earnings season originally appeared on BloggingStocks on Sun, 11 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.