Saturday, April 05, 2008

Trader Alerts: April 7, 2008

Will Alcoa Inc (AA-$39.00) kick off a surprise quarter? The aluminum manufacturer is expected to report fourth-quarter earnings of 55 cents a share, according to analysts surveyed by FactSet Research. Investors will be watching, however, to see if the high price of aluminum will offset a host of factors, including weakness in the automotive and construction industries and cost issues in its smelting division.

Shares of metals processor Allegheny Technologies Inc (ATI-$84.00) jumped almost 12 percent on Friday and its option volume surged (the April 80 & 85 calls) on
renewed chatter that it was a takeover target, option analysts said.

Fitch Ratings affirmed TD Ameritrade Holdings Corp.'s (AMTD-$17.63)
issuer default rating at ‘BB+’ Friday, saying it appropriately reflects the discount brokerage's financial position.

Bond insurer Ambac Financial Group Inc (ABK-$5.99) has
created a special team to assist clients with challenges arising from the auction-rate securities and variable-rate debt markets, such as penalty interest rates that have increased their financing costs.

T-Mobile Germany is currently running
significant discounts on the iPhone when purchased with a 2 year contract, signaling that a new version of the Apple Inc (APPL-$153.08) device may arrive by June, according to some analysts.

Barnes & Noble, Inc (BKS-$31.87) will likely think twice before buying Borders Group, Inc (BGP-$6.17) and could wait for it to implement restructuring efforts
before pursuing a deal, a senior industry banker and a source familiar with the situation told dealReporter

Circuit City Stores Inc (CC-$4.78)
wants a meeting with an investor, Wattles Capital Management, who is seeking the ouster of the struggling company's chief executive and board of directors.

Shares of for-profit educator Career Education Corp (CECO-$15.91) continued to surge in after-market hours, trading up 6.25 percent, after jumping 54 cents (or 3.51%) on Friday, following the introduction of
legislation that will help students pay for college in a tight credit market.

Credit rating agency Fitch Ratings said Friday it
cut the financial strength rating of MBIA Inc (MBI-$13.61) to ‘AA’ from ‘AAA’ because the bond insurer no longer has enough spare capital to warrant a top-notch rating.

Micrel, Inc ($9.04)
set a date for a special shareholder meeting requested by Obrem Capital Management, which owns a 14.9% stake in the chip maker, and is looking to install its own slate of directors on Micrel’s board.

Fitch Ratings
cut the issuer default rating MoneyGram International Inc (MGI-$1.62) to ‘B+’ from ‘BB-‘ late Friday, citing the Minneapolis-based payment services firm’s rate of increased leverage, a debt balance that is likely to rise and reduced profitability at the company’s payment system business.

Fifth Third Bancorp (FITB-$22.71) has emerged as a
possible buyer for struggling National City Corp (NCC-$8.99), The Wall Street Journal reported on Friday, citing people familiar with the situation.

Shares in Petrohawk Energy Corp (HK-$21.22) hit all-time highs in after-market trading on Friday and its option volume soared (the April 20 & 25 calls) on speculation that the oil and natural gas producer was a
takeover target.

Natural gas driller Range Resources Corp (RRC-$66.99) looks to
strike it rich in Appalachia.

Looking to expand its international communications market, ScanSource Inc (SCSC-$34.39), a provider of bar coding, videoconferencing and electronic security products, said Friday it bought MTV Telecom Distribution PLC, a UK-based communications company.

Schering-Plough Corp (SGP-$16.12) CEO Fred Hassan
appeared on Mad Money Friday night, telling host Jim Cramer that the Vytorin fallout is a U.S.-only problem. Hassan added that the drug maker’s overseas cholesterol business is doing well and brushed aside any rumor, too, that the company would be taken over by Johnson & Johnson (JNJ-$65.73) or another big pharma company, saying that Schering management is "doing a very good job."

Sirius Satellite Radio (SIRI-$2.79) shares wavered to close unchanged Friday after an analyst
downgraded the stock, saying the expense of Sirius' buyout of rival XM Satellite Radio (XMSR-$12.04) will keep the stock around its current price.

Trump Entertainment Resorts Inc (TRMP-$3.58) said Friday it has
no casino agreement in place to sell any of its three Atlantic City properties.

UBS AG's (UBS--$33.65) former chief executive Friday called for the Swiss bank
to consider a breakup and criticized this week's appointment of Peter Kurer as chairman, in a move welcomed by some fellow shareholders.

United Therapeutics Corp.'s (UTHR-$86.41) inhaled treprostinil may have
limited efficacy due to a lack of improvement on the New York Heart Association (NYHA) functional class scale, physicians told Pharmawire.

Private-equity firm TPG and other investors are close to a deal to invest $5 billion in Washington Mutual Inc (WM-$10.18), people familiar with the matter said Sunday.

Yahoo Inc (28.36), which previously rejected a $44.6 billion takeover offer from Microsoft Corp (MSFT-$29.16), fell in extended trading on reports that its software suitor
is re-examining its bid.

Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.


Anonymous said...

United Therapeutics Corp.'s (UTH-$86.41) inhaled treprostinil may have limited efficacy due to a lack of improvement on the New York Heart Association (NYHA) functional class scale, physicians told Pharmawire.

You have the wrong symbol here. UTH is the ETF Utilities Holders Trust. United Therapeutics is UTHR.

David J. Phillips said...

Correction noted and typo error fixed. My thany you :)