Jefferies upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Buy from Hold on valuation with the stock down 65% in two months as they believe the company has a "best-in-class fundamental story." The firm lowered its target to $25 from $30.
Morgan Stanley upgraded Sanofi-Aventis (NYSE: SNY) to Overweight from Equal Weight on valuation and believes near-term cost reductions could provide a positive catalyst.
Citigroup upgraded New York Times (NYSE: NYT) to Hold from Sell and lowered its target to $5.50 from $7 on valuation and believes the dividend cut will boost the company's liquidity.
Pantry (NASDAQL PTRY) was upgraded to Outperform from Market Perform at Friedman Billings.
LECG Corp (NASDAQ: XPRT) was raised to Buy from Neutral at UBS.
Thomson Reuters (NYSE: TRI) was upgraded at RBC Capital to Outperform from Sector Perform.
Analyst downgrades:
Jefferies downgraded Suntech (NYSE: STP) to Hold from Buy and lowered its target to $6 from $25 as they believe concerns about a convert refinancing in February 2010 will continue to weigh on the stock.
Credit Suisse cut Ericsson (NASDAQ: ERIC) to Underperform from Outperform due to expectations for a decline in wireless infrastructure spending.
ING downgraded shares of Rio Tinto (NYSE: RTP) to Hold from Buy as they believe it will be challenging for the company to execute asset sales planned at reducing debt in the current environment.
Again, what is left to say? Nothing you haven't heard before. Jobless claims were the highest in over 15 years, earnings are at risk, the recession is here, and redemptions are still coming in droves. Sorry for the gloomy attitude.
Here are today's unofficial closing bell levels: DJIA: 7,552.29 (-5.56%) NASDAQ: 1,316.12 (-5.07%) S&P 500: 752.48 (-6.71%) Top Upgrades & Downgrades
Amgen Inc. (NASDAQ: AMGN) was down after it and Takeda's Millennium Pharma said that enrollment in a lung cancer trial was being suspended because of higher deaths in part of the control group over the placebo group. Shares were down over 6% at $50.13.
General Electric Co. (NYSE: GE) was slapped today on reports that the company is in talks with several private or sovereign wealth funds over capital. This stock put in a decade low, even though GE said it was not raising capital. Shares were down 11% at $12.80 right before the close.
Microsoft Corporation (NASDAQ: MSFT) filed a shelf registration statement that will allow it to sell debt instruments from time to time if it chooses, although no terms were given, no size is indicated, and no underwriters are mentioned. Shares were down 4% at $17.54 right before the close.
PepsiCo, Inc. (NYSE: PEP) reaffirmed its previously announced full-year 2008 core EPS guidance at an investor conference. Shares were down almost 4% at $50.17 right before the close.
Suntech Power Holdings (NYSE: STP) was hit after it posted $0.35 EPS vs. $0.42 estimates, and it guided next quarter and 2008 lower. The term "global warming" back to "climate change" right now even for the green investors. Shares were down 37% at $5.55 right before the close.
Increasing demand for solar energy and solar products proved to be a boon for Trina Solar Ltd. (NYSE: TSL) and LDK Solar Co. Ltd. (NYSE: LDK) as both companies reported Wednesday that their earnings soared in the third quarter. Investors were not impressed, however, pushing shares lower.
Trina Solar, a maker of solar photovoltaic products, said its net income quadrupled to $32.1 million, or $1.17 per American Depository Share, from the same period of the previous year. These results included a foreign currency exchange loss of $4.9 million. Revenue more than tripled to $290.7 million.
Analysts surveyed by Thomson Reuters, on average, had expected a profit of $1.21 per share on revenue of $276.9 million.
However, the company lowered its full-year 2008 revenue estimate to range between $800 and $850 million because the company expects fewer product shipments for the year than previously forecast.
Shares of Trina Solar fell to a 52-week low of $6.81 Wednesday. The share price is 86.8% lower than a year ago.
China-based Suntech Power Holdings (NYSE: STP) is slated to report its third-quarter earnings results ahead of the opening bell tomorrow, and the solar stock looks particularly vulnerable to a post-report drubbing. Sector peer JA Solar (NASDAQ: JASO) fell to an all-time low last week after offering a weak outlook, while Trina Solar (NYSE: TSL) today lowered its revenue forecast for 2008.
Currently, First Call reports that analysts are expecting STP to report a quarterly profit of 42 cents per American depositary receipt. Suntech has a respectable history in the earnings spotlight, having exceeded the Street's forecast in three out of its past four reports.
On the plus side, it seems as though many brokerage firms have already downwardly revised their expectations for STP. There have been 10 cuts to the firm's average 2008 earnings-per-share estimates, compared to just two increases.
Plus, several analysts have issued bearish notes on Suntech in the past few weeks: Jefferies & Co. cut its price target on November 17; JPMorgan Chase cut the stock from "neutral" to "underweight" and lowered its price target on November 16; Raymond James downgraded STP from "strong buy" to "outperform" on November 13, the same day that AmTech Research slashed its price target; and Deutsche Bank cut the stock from "hold" to "sell" on November 10.
Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.
Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.
Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.
Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.
U.S. stock futures were higher Monday morning, indicating stocks could rise at the open after China Sunday announced a $585 billion stimulus package, which includes tax cuts and infrastructure spending. This cause world markets to climb as well as commodities. Oil followed stock markets and jumped above $64 a barrel. Another boost to stocks was further aid from the government to AIG.
[Update 8:25: Circuit City Stores Inc. (NYSE: CC)filed for bankruptcy. Shares are down 52% in premarket trading to 12 cents.]
American International Group (NYSE: AIG) -- The government on Monday provided new financial assistance to the troubled insurance giant, including pouring $40 billion into the company in return for partial ownership. Altogether, AIG got around $150 billion. AIG shares are shooting up over 21% in premarket trading.
General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler are also moving closer to a bailout as Obama's chief of staff, Rahm Emanuel, called the industry an "essential" part of the U.S. economy. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid said that the administration should consider expanding the $700 billion financial industry bailout to include car companies. With this kind of support, still undecided is the size and timing of any aid. GM shares are up 2.3% (it was hit by a downgrade from Barclays) and Ford shares are up nearly 5% in premarket trade. [Update 9:10: as expected, with the GM downgrade, it is down over 10% in premarket trading, Ford is only slightly down thought]
NRG Energy Inc. (NYSE: NRG) on Sunday rejected an unsolicited $6.1 billion all-stock bid from nuclear power giant and utility operator Exelon Corp. (NYSE: EXC), calling it too low. NRG shares jumped 6.8% in premarket trading.
One of Obama's top priorities is making our nation energy independent with alternative energy. A barrel of oil trades in the $60s and has been coming down for awhile. But over time, energy will probably rise. If our country can build energy independence, it creates jobs, helps our national security and stops the dramatic wealth transfer to potential enemies of our country.
If Obama does what he promises, there will be more investments in the alternative energy field. Instead of trying to pick the best stocks and learn all about these companies, you can own one stock, an ETF (exchange traded fund) that is a basket of the top companies in this sector.
The Market Vectors Global Alternative Energy ETF (NYSE: GEX) is a low cost way to play alternative energy. GEX is built around an index developed by Ardour Global which includes companies that generate power through eco friendly and non-traditional sources. It started the year at $60.45 and has corrected down to $23.27 today.
To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).
To stay ahead of the market is impossible these days, and all one can do is hope we're nearing a bottom and current picks could only benefit. Following the different events this week and the still ongoing earnings season, here are some stock picks and pans from BloggingStocks contributors:
General Electric Co. (NYSE: GE) was Amey Stone's Obama pick due to near-term catalysts as well as long term solid fundamentals -- not to mention the 6% yield.
Ford Motor Co. (NYSE: F) was Michael Rainey's Obama pick. Since Ford is the strongest of the Big Three, Obama will likely choose to save it ... and perhaps GM. Ford had just reported earnings Friday, posting a loss.
President-elect Barack Obama has often repeated his stance on alternative energy. He plans to spend $150 billion over 10 years on alternative energy, not only as part of his energy independence plan, but also in order to help clean the environment, and perhaps most important of all, to create 5 million new jobs.
With Obama winning in the polls, it is no wonder that on Tuesday solar stock prices soared: SunPower Corporation (NASDAQ: SPWRA) finished the day up 14.6%, Suntech Power (NYSE: STP) also closed 13.5% higher, Evergreen Solar (NASDAQ: ESLR) closed 12.8% higher, Canadian Solar (NASDAQ: CSIQ) was up 14.7% while Trina Solar (NYSE: TSL) gained 9.1%, First Solar (NASDAQ: FSLR) 9.6% and LDK Solar (NYSE: LDK) 4.8%. In fact, over the past week, these solar stocks added about 50% to their value: ESLR +104%, FSLR +55%, STP +53%, SPWRA +51%, LDK +48%, CSIQ +45% and TSL +41%. [Solar stocks are down this morning, seems to me a "sell on the news" decline.]
With these kind of gains recently you might think you're too late, but solar stocks have actually been beaten mercilessly in the past year. While the S&P 500 declined some 31% year-to-date and the Nasdaq declined 33%, solar stocks plunged even worse: STP -75%, TSL -73%, ESLR -69%, SPWRA -61%, CSIQ -56%, LDK -50% and FSLR -34%.
Congress passed a bill that approved about $18 billion of renewable-energy tax credits after repeated failed attempts to do so this year, and now there will be an administration that -- if it sticks to its claims -- will be more supportive of alternative energy. The only question investors should ask, so which do I pick?
This post was written by Minyanville contributor Sean Udall
Maybe the charts will take care of this decision for frustrated investors. Nothing ends selling and starts buying like a spiky MACD right cross.
And maybe the group move (lower) was just one massive liquidation trade and the biggest of the machines knew where the weakest hands were the most susceptible to letting shares go to meet redemptions.
I'm actually inclined to buy the strength as we have oil down, and a new month of us. We are also in an environment where little hard analysis from the analyst community has been fostered. Simply put, speculation of a macro condition (credit crunch), has been liberally applied to micro condition sets for an industry in an early growth phase. So basically a coin has been tossed in the air and the analyst community has mostly called a negative outcome. A few bullish holdouts exist but by and large this looks like a group think nightmare in every direction so far.
I still like most of the big guns and a couple smaller shops but I've always been cautious of names in need of funding and that is more critical now. Also, an Obama victory trade on the group might fade very hard just as the bailout passage was.
"Long-term results notwithstanding, 2008 has been humbling, to say the least. No other year in our history has been as challenging.
"But in our experience, the most favorable buying opportunities tend to fall after a period in which the market has not performed well.
"Although year-by-year results can be volatile, disciplined investors who remain fully invested in a portfolio of high-growth equities selected using our methodology have historically achieved an exceptional average rate of return over long periods of time.
"Suntech Power Holdings Co., Ltd is one of the leading solar energy companies in the world as measured by production output of photovoltaic, or PV, cells, with leading positions in key solar markets such as Germany and Spain.
This charming pic-toon of moderation comes from one of my talented long time friends, Ron Overmyer, who has allowed me to share it with our readers. He does a weekly email blast and this is one of his tamer commentaries, one that might give us pause to consider what it means to be objective.
I thought I would take a moment to shout out to any moderates in the audience and say that I too have worried that some of my colleagues may have sacrificed their reputations for objectivity by writing some posts that could be viewed as borderline paid political announcements. Some readers have quipped that this should be included in the disclosure. However, on the occasion that this is true, it is usually so blatant that I would characterize such disclosure as redundant.
Several of my posts contain political commentary but I think our posts should be about investing, not swaying voter opinion. I especially avoid one-sided rationalizations that appear to have a specific agenda -- although I readily admit that on occasion the dividing line may be very fine indeed.
I still have not made up my mind about the upcoming election because I find some merit in the positions of each candidate. But to me the real question on our site remains: where do you put your money in the case of either candidate's success?
Rival home improvement chains Home Depot Inc. (NYSE: HD) and Lowe's Companies Inc. (NYSE: LOW) are scheduled to report quarterly results this week. Not surprisingly, given the ongoing housing slump, analysts surveyed by Thomson Financial on average expect both companies to post earnings lower than in the same period a year ago. For Home Depot, that's 61 cents per share, down 20.8%, and for Lowe's, 56 cents per share, down 16.4%. Meanwhile, cabinet maker American Woodmark Corp. (NASDAQ: AMWD), for whom Home Depot and Lowe's are major distributors, is also expected to report lower earnings: 11 cents per share, down 67.6%.
The presidential campaigns have prompted much discussion of energy policy and alternative energy sources. Some solar-energy-related concerns are scheduled to report this week, and expectations seem to be high. Trina Solar Ltd. (NYSE: TSL) is expected to report 81 cents per share earnings, up 67.9%; ReneSola Ltd. (NYSE: SOL) is expected to post earnings of 32 cents per share, up 62.5%; and Suntech Power Holdings Co. (NYSE: STP) is expected to have earnings of 32 cents per share, up 21.9%. Even China Sunergy Co. Ltd. (NASDAQ: CSUN) is expected to have swung to a profit of 3 cents per share, from a per-share loss of 14 cents a year ago.
After hitting a one-year high of $90.00 in January, the stock hit a one-year low of $28.19 in March. STP opened this morning at $42.01. So far today the stock has hit a low of $41.12 and a high of $42.69. As of 12:35, STP is trading at $41.85, up 0.54 (1.3%). The chart for GIS looks bearish but improving slightly, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.
For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $30 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 7.5% return in just two months as long as STP is above $30 at August expiration. STP would have to fall by more than 28% before we would start to lose money. Learn more about this type of trade here.
STP hasn't been below $30 since March and has shown support around $38 recently. This trade could be risky if the company's earnings (due out in early August) disappoint, but even if that happens, this position could be protected by the support the stock might find between $35 and $40, where it bounced over the past month.
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 STP.
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Analyst upgrades:
Again, what is left to say? Nothing you haven't heard before. Jobless claims were the highest in over 15 years, earnings are at risk, the recession is here, and redemptions are still coming in droves. Sorry for the gloomy attitude. 
Trina Solar, a maker of solar photovoltaic products, said its 
China-based 
Last week, 
U.S. stock futures were higher Monday morning, indicating stocks could rise at the open after China Sunday announced a $585 billion 
ealth transfer to potential enemies of our country.
To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).
President-elect Barack Obama has often repeated his stance on alternative energy. He 
This charming pic-toon of moderation comes from one of my talented long time friends, Ron Overmyer, who has allowed me to share it with our readers. He does a weekly email blast and this is one of his tamer commentaries, one that might give us pause to consider what it means to be objective. 
Rival home improvement chains 
Waiting for the other shoe to drop: The looming credit crisis
Closing Bell: Dow down 7.7%; GE, YHOO, MS fall, PGI, MNT soar
Bet on T&A with J&J (JNJ)
