- Tyson Foods (TSN) to buy from hold at Deutsche Bank.
- Carmike Cinemas (CKEC) to buy from neutral at Merriman.
- Ambow Education (AMBO) to conviction buy from neutral at Goldman.
- Johnson Controls (JCI) to overweight from equal weight at Barclays.
- Dynex Capital (DX) to outperform from market perform at JMP Securities.
- Ensco (ESV) to outperform from neutral at Credit Suisse.
- York Water (YORW) to buy from hold at Brean Murray.
- Mid-America Apartment (MAA) to market perform from underperform at FBR Capital.
- Cheniere Energy Partners (CQP) to hold from sell at Citigroup.
- Forest Oil (FST) to positive from neutral at Susquehanna.
- Tractor Supply (TSCO) to outperform from neutral at RW Baird.
The impressive story continues with Potash Corp. (POT), first discussed here on March 3, 2009, at a price of $80.81.
In November, BHP Billiton (BBL) withdrew its unsolicited proposal to acquire Potash for $130 a share. As outlined in December, Potash is worth a lot more than $130, and the recent move to above $180 confirms the aforementioned.
In November, BHP Billiton (BBL) withdrew its unsolicited proposal to acquire Potash for $130.
As traders like to say, "No-oo problem. No problem at all." Potash is worth a lot more than one Benjamin plus a third.
- Dynegy (DYN) was upgraded to buy from neutral at Pritchard.
- Itron (ITRI) was upgraded to neutral from underperform at Macquarie.
- Goldman upgraded Ameren (AEE) to sell from conviction sell.
- Signet Jewelers (SIG) was upgraded to buy from hold at Societe Generale.
- JPMorgan upgraded Synopsys (SNPS) to overweight from neutral.
- SanDisk (SNDK) was upgraded to outperform from neutral at RW Baird.
- JPMorgan resumed Potash (POT) at overweight, up from neutral.
- Ariba (ARBA) was upgraded to buy from neutral at Roth Capital.
- Cirrus Logic (CRUS) was upgraded to buy from hold at Jefferies.
- Morgan Stanley upgraded Tesoro (TSO) to overweight from equal weight.
- Solarfun Power (SOLF) was upgraded to buy from hold at Auriga.
- Barclays upgraded Ciena (CIEN) to overweight from equal weight.
- Optimer Pharm (OPTR) was upgraded to outperform from market perform at JMP Securities.
- Argo Group (AGII) was upgraded to outperform from market perform at FBR Capital.
- BofA/Merrill upgraded Green Mountain (GMCR) to buy from underperform and Southern Company (SO) to neutral from underperform.
- JPMorgan upgraded Vivus (VVUS) to overweight from neutral.
- Citigroup upgraded Corn Products (CPO) to buy from hold.
- Maxim Integrated (MXIM) was upgraded to outperform from market perform at FBR Capital.
- Cardinal Health (CAH) was upgraded to outperform from neutral at RW Baird.
- Citigroup upgraded Monster Worldwide (MWW) and EchoStar (SATS) to buy from hold, as well as Las Vegas Sands (LVS) to buy from sell.
- BMO Capital upgraded Potash (POT) and Barrick Gold (ABX) to outperform from market perform.
"Market Vectors Agribusiness ETF (MOO) offers a great opportunity to capitalize on the move in the sector; the fund focuses on the 40 most actively traded companies in the agriculture chemical and product business," says Jim Farrish.
The exchange-traded fund specialist and editor of SectorExchange.com explains, "Below, we review the ETF as well as some individual agriculture-based stocks poised to break out on the upside.
"The agriculture stocks have been moving up aggressively since the end of June. The initial push came on the drought issues in Russia and wheat production.
Here were today's unofficial closing levels:
Dow Jones 11,008.59 +2.11 (0.02%)
S&P 500 1,165.04 -0.11 (-0.01%)
Nasdaq 2,402.33 +0.42 (0.02%)
TOP ANALYST CALLS
In addition to the weekend's news, The Globe and Mail reported Friday that Chinese firm Sinochem has approached the National Mineral Development Corporation (NMDC) about a joint bid for Potash. Sinochem is making the pitch for a joint bid because it may believe that an individual bid would be shot down by Canada's political powers.
General Mills (GIS) option was active on call volume of 88K contracts, compared to put volume of 8K contracts. October put option implied volatility is at 28, January is at 25, above its 26-week average of 21, according to Track Data. The active call volume suggests traders taking positions for price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
- HSBC upgraded Massey Energy (MEE) to overweight from neutral based on improved 2011 pricing power given industry supply-side discipline. Despite the upgrade, the firm cuts its price target to $40 from $54.
- Needham upgraded Blue Coat Systems (BCSI) to buy from hold following yesterday's announcement that Michael J. Borman has been named the new CEO. The firm has a $27 price target on the stock.
- Citigroup upgraded Teekay Offshore Partners (TOO) to buy from hold after the company announced shuttle tanker contracts to reflect improved operating performance. The firm raised its target for shares to $26 from $15.
- Prosperity Bancshares (PRSP) was upgraded to equal weight from underweight at Morgan Stanley.
- Ceradyne (CRDN) was upgraded to buy from hold at Benchmark Co.
- CTC Media (CTCM) was upgraded to buy from hold at Deutsche Bank.
- Wells Fargo upgraded Gap (GPS) to outperform from market perform, citing valuation and expectations for EPS to grow in FY11. The firm thinks consensus estimates are achievable and has a $20 to $22 target valuation range for shares.
- BMO Capital upgraded Abercrombie (ANF) to outperform from market perform and has a $43 target on the stock. The firm believes Abercrombie's domestic business is turning and that the company is beginning to take share from competitors.
- Piper Jaffray upgraded Codexis (CDXS) to overweight from neutral as it believes Shell's (RDS.A) biofuel commercialization plans and a potential carbon capture partnership present near-term catalysts for the stock. The firm upped its target for shares to $12 from $11.
- Tortoise Energy Capital (TYY) and Tortoise Energy (TYG) were upgraded to buy from hold at Wunderlich.
- Comerica (CMA) was upgraded to outperform from neutral at Baird.
- Methanex (MEOH) was upgraded to strong buy from outperform at Raymond James.
Good question. One thing is certain: it's worth a lot more than $150 per share. Potash rose $3.33 to $153.00 on Monday at mid-day.
Potash's board unanimously prudently rejected BHP Billiton's (BHP) woeful $130 per share offer. To be sure, BHP wasn't trying to insult POT's board, but a $130 per share bid came close to achieving that ignominious result.
According to The Wall Street Journal, people "familiar with the matter" stated that there could be a global consortium in the works to make a counteroffer for Potash. BHP has gone straight to Potash shareholders with its offer of $130 per share.