Sunday, April 27, 2008

Trading Alerts: Monday, April 28, 2008

"If you're looking for hidden environmental stocks, look no further than the suppliers of The Boeing Co (BA-$84.84)," Jim Cramer told fans of his "Mad Money" TV show Friday. He singled out Precision Castparts (PCP-$120.59) and BEA Aerospace (BEAV-$39.50) as two Boeing suppliers for the new 787 Dreamliner that could appreciate in price significantly.

Bristol-Myers Squibb Co (BMY-$22.15) and Medarex Inc (MEDX-$8.01)
will delay the Biologics License Application (BLA) submission for ipilimumab, an investigational immunotherapy for patients with advanced metastatic melanoma. The FDA has requested additional overall survival data to further demonstrate the benefit of the biotechnology drug. Revised timelines are under development, but a BLA for the monoclonal antibody will not be submitted to the FDA in 2008.

Cooper Tire & Rubber Co (CTB-$14.70) said its first-quarter March earnings would be "considerably below expectations" due to the U.S. economic slowdown and higher raw material costs, according to an
8-K regulatory filing with the SEC on Friday. Initiatives taken by CTB to improve its product mix and cut costs did not offset forecasts of lower replacement tire volumes. Analysts surveyed by Thomson Financial expected the Ohio-based tire company to post earnings of 20 cents a share for the quarter ended March 31.

Deerfield Capital (DFR-$1.32) has
reduced leverage to improve its liquidity position and will not pay a dividend in the first quarter of 2008 to preserve cash. No surprise, for its trailing-twelve-month dividend yield (based on the REIT’s current price) was 182.60 percent!

executive exodus from troubled online brokerage E-Trade Financial Corp (ETFC-$4.00) is continuing, with the chief financial officer's and general counsel's departures announced Friday as the company grapples with massive losses stemming from its hemorrhaging mortgage business.

Humana Inc (HUM-$44.88) reports earnings for the
first-quarter on Monday. In March, the Louisville, Ky.-based health insurer nearly halved its first-quarter earnings estimate due to higher-than-expected claims in its stand-alone Medicare prescription plans. Analysts polled by Thomson Financial, on average, now forecast earnings of 45 cents per share on sales of $6.94 billion.

MasterCard (MA-$237.39) is estimated to report a profit of $1.98 a share in the first quarter, according to FactSet Research's poll of analysts. Wall Street will value the credit card provider on free cash flow generated and credit/debit purchase volume(s).

Derivatives brokerage MF Global Ltd (MF-$12.55) is
weighing the sale of 10% in common stock to a handful of private equity players, a source close to the situation and a senior industry banker monitoring the circumstances from Europe told dealReporter.

Osteotech Inc (OSTE-$4.58) announced that
the FDA cleared its Plexur P Biocomposite for use in spinal applications as a bone void filler and as a bone graft extender. The skeletal graft and stabilization products maker previously received FDA clearance for the use of Plexur P in filling bony voids of the pelvis and extremities.

Following the stock market close on Monday, Plum Creek Timber Co (PCL-$42.65) is expected to report first-quarter earnings of 20 cents a share, analysts surveyed by FactSet Research said. The timberland owner
slashed its earnings forecasts on April 1 due to delays in land sales and weak demand for lumber.

RadioShack Corp. (RSH-$17.50) is projected to post a
first-quarter profit of 29 cents a share on Monday, according to analysts surveyed by FactSet Research. Struggling with tough competition from other consumer electronic retailers and discount stores such as Target Corp, Wall Street is keen to see how the company’s turnaround plan (which includes a shift in merchandise mix, aggressive cost-cutting, and inventory initiatives) is fairing. Beholden to a decaying business model and a slowing economy, on average, analysts believe it unlikely the electronic retailer can improve sales over coming quarters.

Drugmakers Schering-Plough Corp (SGP-$18.64) and Merck & Co (MRK-$40.72) said
the FDA rejected a proposed allergy/rhinitis drug that would have combined two best-selling drugs, Claritin and Singulair into one tablet.

STMicroelectronics NV (STM-$11.60) is likely to report a first-quarter profit of 19 cents a share, FactSet Research said. In January, the
chip maker said it expected a decline in revenues in the first quarter of between 5 and 11 percent compared to the previous three months, in line with seasonal patterns and forecasts. The gross margin is expected to be about 36.3%, plus or minus 1 percentage point.

Sysco Corp (SYY-$28.12) is forecast to post earnings of 38 cents a share for the fiscal third quarter, according to FactSet Research. Sentiment in the foodservice provider has been negative, with the share price trading off its two-year low, due to investors lumping the stock in with the depressed restaurant dining group.

The owner of the New York Daily News, developer Mortimer Zuckerman, offered $580 million to acquire Newsday from Tribune Co. (TRB-$33.98),
matching a preliminary offer submitted earlier in the week for the Long Island Newspaper by Rupert Murdoch’s News Corp (NWS-$18.33).

Tyson Foods (TSN-$18.15) has not offered any guidance for its second-quarter. Analysts polled by Thomson Financial, however expect earnings of 1 cent per share on revenue of $6.69 billion. When the meat producer
reports on Monday, investors will be watching to see how much grain costs cut into profits this year at the meat producer. Wall Street will also be looking to see if consumers balk at price increases.

United Airlines parent, UAL Corp (UAUA-$15.21), is
nearing a decision about its potential merger partner, which industry watchers familiar with the talks believe to be carrier Continental Airlines (CAL-$17.22).

Wm Wrigley Jr. Co (WWY-$62.45) is projected to post a first-quarter profit of 55 cents a share, according to FactSet Research. Weighting down the share price of the stick gum maker is lingering concern of too much inventory at retailers/distributors.

Verizon (VZ-$ 37.04) is expected to report
first-quarter earnings of 62 cents a share on Monday before the opening bell, according to analysts surveyed by FactSet Research. Investors will be looking for sequential subscriber growth in broadband, wireless, and demand for the telecom company’s services (Average Revenue/Subscriber). Industry watchers predict net broadband subscriber growth of 272,000 (down 144,000 Y/Y), wireless net adds of 1.5 million, and 2% Y/Y growth in ARPU to $50.95.

Visa Inc (V-$75.10) reports its fiscal
second-quarter earnings on Monday. Analysts polled by Thomson Financial forecast earnings of 46 cents per share on revenue of $1.45 billion, on average. In 2007, the credit card processor handled more than 44 billion transactions totaling more than $3.2 trillion. Catalyst for a price move will be the company's guidance for forward growth prospects, including transaction volume, in a slowing economy.

Yahoo! Inc (YHOO-$26.80) let Microsoft's (MSFT-$29.83) deadline for a response to its $40 billion-plus offer for the Sunnyvale Internet company
elapse without a word Saturday, putting the ball back in the software giant’s court.

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.

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