Reuters: Solvay sold its drug unit to Abbott (ABT) foe $6.6 billion.
Reuters: Kraft (KFT) will launch a hostile bid for Cadbury.
Reuters: The World Bank said not to take the dollar’s role in the global economy for granted.
Reuters: Crucell got a $302 million investment from J&J (JNJ) Read More
These are this Thursday’s top day trader and active trader alert stocks. We have links through to each with more detailed price/volume analysis over at VSinvestor.com:
Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are bouncing by over 10% this morning now that equities have stopped the drop for now.
Hovnanian Enterprises Inc. (NYSE: HOV) is down about 10% … maybe all those ‘great home sales figures’ are either not so great or are not sustainable.
InnerWorkings Inc. (NASDAQ: INWK) is down sharply on an earnings warning.
Sun Microsystems Inc. (NASDAQ: JAVA) is down, but not as bad as you might think, on the EU probe of the Oracle Corp. (NASDAQ: ORCL) buyout…. Silly children must be in charge over there.
Sepracor, Inc. (NASDAQ: SEPR) is already at exponential trading volume on the buyout news.
Sinovac Biotech Ltd. (AMEX: SVA) is challenging $10.00 again… China approved it for a vaccine against swine flu for the Chinese market.
Zumiez Inc. (NASDAQ: ZUMZ) is up over 10% after negative same store sales were not as bad even at -12.1%… it caught 3 analyst upgrades.
You can join our open email distribution list which goes out several times per week if you wish to be notified by email when the top day trader alerts hit, along with news of IPO’s, key offerings, guru investor data on Buffett and others, mergers, and more.
JON C. OGG
SEPTEMBER 3, 2009
These are this Thursday’s top analyst downgrades seen from Wall Street research calls early this morning:
Deere & Co. (DE) Cut to Underweight at JPMorgan.
eHealth (EHTH) Cut to Hold at Argus.
Harmony Gold Mining (HMY) Cut to Underweight at JPMorgan.
Hovnanian (HOV) Cut to Underperform at Credit Suisse.
Repsol (REP) Cut to Underperform at Credit Suisse.
JON C. OGG
Reuters: The US outlined new financial market reforms.
Reuters: Obama lobbied MDs on his new healthcare package.
Reuters: Russia hosted the first BRIC summit.
Reuters: B of A’s (BAC) BlackRock (BLK) stake is more appealing.
Reuters: Samsung and Nokia (NOK) are pushing into smartphones. (MOT)(AAPL)(RIMM). Read More
These are the top ten analyst calls for research upgrades, downgrades, and initiations which we have seen from Wall Street early this Monday morning:
Airgas (ARG) Started as Buy at Piper Jaffray.
AT&T (T) Removed from Conviction Buy List at Goldman Sachs, but maintained Buy rating with 32% upside.
Google (GOOG) Cut to Hold from Buy at Benchmark.
Hovnanian (HOV) Cut to Underperform at Wachovia.
MercadoLibre (MELI) Raised to Positive at Susquehanna.
Sassol (SSL) Started as Neutral at UBS.
StatoilHydro (STO) Cut to Sell from Neutral at UBS.
Taiwan Semi (TSM) Raised to Overweight at Morgan Stanley.
Thomson Reuters (TRI) Raised to Outperform at Scotia.
Williams-Sonoma (WSM) Raised to Buy at Piper Jaffray.
JON C. OGG
June 8, 2009
Traders are lightly selling Hovnanian Enterprises Inc. (NYSE: HOV) and Toll Brothers Inc. (NYSE: TOL) after the two homebuilders reported earnings between yesterday’s close and this morning’s open. The news is also impacting the SPDR S&P Homebuilders (NYSE: XHB) on a lesser basis.
Read More
We won’t bother telling you about the homebuilder merger this morning, because we already covered it once. But in a down and out sector, you will see that traders are looking to see if there will be other mergers in the battered group. As you will also see, the lower market cap stocks are the ones where traders are guessing as to which will be the next take-out candidate. Our cut off was a $100 million market cap as of yesterday and every stock in the sector that we track in the U.S. is higher.
DR Horton Inc. (DHI)….. $3.5B; +5.8% at $10.78
Toll Brothers Inc. (TOL). $3.1B; +4.5% at $18.86
NVR Inc. (NVR)……….. $2.6B; +4% at $6.86
MDC Holdings Inc. (MDC).. $1.5B; +4.5% at $30.95
Lennar Corp. (LEN)……. $1.2B; +11% at $7.98
KB Home (KBH)………… $1.1B; +6% at $14.30
Ryland Group Inc. (RYL).. $728.8M; +6% at $16.80
Meritage Homes Corp(MTH). $401.3M; +7.3% at $12.99
Hovnanian (HOV)………. $125.0M; +11% at $1.72
M/I Homes, Inc. (MHO)…. $121.7M; +2.2% at $8.72
Standard Pacific (SPF)… $100.6M; +11% at $1.00
Oddly enough, the SPDR S&P Homebuilders (NYSE: XHB) ETF is only up almost 4% at $11.37. The other ETF, the iShares Dow Jones US Home Construction (NYSE: ITB) is up 3.5% at $9.25. This is a slightly different ETF, but the PowerShares Dynamic Building & Construct (NYSE: PKB) is up 1.3% at $9.65 on very thin volume.
JON C. OGG
Hovnanian (HOV) News on housing prices pushes homebuilder down. Drops to $1.56 from 52-week high of $13.50.
Parent (KIDS) Files for Chapter 11. Sells down to $.05 from 52-week high of $6.43.
Ballard Power Systems (BLDP) Court ruling hurts shareholders. Plunges to $1.25 from 52-week high of $5.71.
Pacific Ethanol (PEIX) No news. Alternative energy stocks continue ride down. Moves off to $.41 from 52-week high of $9.20.
Douglas A. McIntyre
A lot of fairly well-known public companies either disappeared or went bankrupt this year. Circuit City is on the list. Based on the most recent news GM may get added soon.
24/7 Wall St. looked at some of the largest and most well-known companies, reviewed their SEC filings if they are public, analyst reports, and media observations about their businesses and picked ten that probably won’t be around at the end of next year. That does not mean that their brands will disappear, but these companies will have been dissolved as the world knows them now or working though the court system in the hopes of getting Chapter 11 protection and a chance at survival.
According to Reuters, the Fed may need to use a trillion dollars to halt the economy from moving into a period of deflation.
Reuters reports that OPEC will make the largest production cut in its history.
Reuters reports that Madoff is trying to stay out of jail.
Credit Suisse has issued a new coverage rating systems for its homebuilder universe. These are some of the calls we saw in the sector:
We’ll follow up if we see any of the other calls in the sector out of Credit Suisse.
Jon C. Ogg
June 24, 2008
These aren’t going to be the only impact analyst calls this Tuesday morning, but these are ten of the calls we are focusing on very early this morning:
Jon C. Ogg
June 17, 2008
The case for housing and home building stocks may be this simple. When smart money comes into the industry, the bottom should be near. Unless smart money has an idiot fringe, an outpost of stupidity with a big check book.
Standard Pacific (SPF), one of the home builders on the organ transplant list, got some good news today. The $530 million from MatlinPatterson Global Advisers is a god send. According to Reuters, "The investment was more than three times the company’s market value before the shares jumped on the announcement."
The deal sounds too good to be true for current stockholders. Senior and subordinated debt in the deal both convert above the share price when the deal was set.
The inventory of homes on the market is, according to recent data, at its highest level since 1988. S&P says that home prices are off 14% over the last year. But, the Commerce Department reports that new home sales are up. The conflicting data makes the map of the housing economy look like a plate of spaghetti.
Even with its run-up to $3.38 today, SPF is still down from its 52-week high of $22.17, which is hardly a recovery.
Douglas A. McIntyre
These are not all of the analyst calls affecting shares but these are ten that we are focused on this Thursday morning:
Jon C. Ogg
May 1, 2008
Lehman Brothers has initiated coverage of some key homebuilders this morning:
Just yesterday we noted how the sector has seen a major recovery and were pondering if the sector had bottomed.
Jon C. Ogg
February 27, 2008
If you have been watching homebuilders of late, you’ll notice a sharp disconnect between the headlines still coming out and the stock prices of many homebuilders. The move today is partly attributed to Sam Zell’s interview on CNBC saying this spring should mark the bottom in housing. The SPDR S&P Homebuilders (AMEX: XHB) ETF shares are up 6.3% at $22.56 today, and its 52-week low is $15.22.
Keep in mind that Zell has that Gafisa SA (NYSE: GFA) as one of his big plays in Brazil, which we recently noted as one of Jim Cramer’s top picks in Brazil. We have also noted how many of these stocks had doubled from lows. Banc of America recently was the first to upgrade several of these in the homebuilder sector as well.
Today, shares of these are up big, which you can see in comparison to their 52-week lows:
Stock/Symbol Trade Change 52-wk Range Market Cap
DR Horton (DHI) $16.44 +6.06% $9.78-27.26 $5.18B
Toll Bros (TOL) $23.24 +6.02% $15.49-32.00 $3.68B
Lennar (LEN) $20.40 +8.63% $11.98-51.43 $3.26B
Centex (CTX) $26.10 +9.53% $17.77-49.85 $3.19B
Hovnanian (HOV) $10.91 +10.20% $4.25-33.32 $679.76M
Beazer (BZH) $8.74 +12.48% $4.53-42.42 $342.68M
We have noted over and over that this sector would bottom and start to recover long before the news starts to look like anything resembling good news. That may or may not be now, but when you see an ETF recover 50% from lows you have to wonder how much worse things would have to get for that recovery to not at least partially hold up. At one point, things were getting so bad we even asked "which would hit zero first?"
We still expect more bad headlines with no end in clear site. But a 50% recovery in an ETF that measures a sector has to be telling you something, even if there will be more bad days on and off and even as more headlines still look bad.
Jon C. Ogg
February 26, 2008
Everyone knew homebuilders would turn one day and when they turned it would be fast and in a flurry of buying volume. Much of this may attributed to short covering, but much is because the good old Fed and another 125 basis points in rate cuts within a 10-day period. You know you can’t pay attention to the headlines on home sales or even the earnings out of these, because that is dismal. But traders are taking aim here. In fact some of these are up 100% off of lows already.
We even ran the key ETF for the sector. The SPDR S&P Homebuilders (AMEX: XHB) is up over 8% today to $22.10. But even this is up almost 50% from the recent lows; 52-week trading range $15.22 to $40.03. That low was just on January 9, 2008.
There are many other names that were equally charged. But these were the ones that fir the screen today.
Jon C. Ogg
January 31, 2008
Below is a summary of many of the top headlines and news bits from individual stocks affecting share prices in pre-market trading this Wednesday:
Jon C. Ogg
December 19, 2007
According to Reuters, Philips plans to buy-back $7.2 billion in shares.
The Wall Street Journal writes that former Treasury Secretary Lawrence Summers believe that the government should put together a $75 billion program to keep the economy out of recession.
The Wall Street Journal writes that the senior management at Bear Stearns (BSC) will not get bonuses this year.
The Wall Street Journal writes that Palm (PALM) posted disappointing numbers
The Wall Street Journal writes that GM (GM) has begun the first phase of worker buy-outs.
The Wall Street Journal reports that NBC will begin to use cable and foreign shows during the writers strike.
The Wall Street Journal writes that developer claim the new Google (GOOG) handset software, Android, is full of bugs.
The Wall Street Journal writes that UBS may be on the hook for the money that was to be used for an acquisition of Genesco..
The Wall Street Journal reports that Best Buy (BBY) posted strong results avoiding the downturn in retail.
The New York Times reports that the managements of several major investment banks are considering bailing out bond insurance company ACA Capital Holdings.
The FT reports that Goldman Sachs (GS) warned that its record run could be over because of bad results in November.
The FT writes that the FCC voted to relax rules allowing companies to own TV stations and newspapers in the same market.
The FT also writes that the banks behind the SIV Super Fund say that it will be up and running within weeks.
Barron’s writes that as many as 266 companies will bid on the 700 MHz spectrum when the auction begins next month. The companies include AT&T (T) and Verizon (VZ).
CNN Money writes that Hovnanian’s (HOV) losses increased 4x in the last quarter.
Douglas A. McIntyre
Everyone keeps predicting one or more of the large US Homebuilders is going to implode because of their overbuilding and inability to sell new units at their old highly profitable margins. Most of these have large land bank losses from property options being written off. inventories are through the roof, no pun intended. Well, you’ve seen and heard the news.
What we wanted to do was show a list of the old major homebuilders to show how the stocks have sold off over the last year and even how low the market caps have become in the sector. Dubai has signaled it wants to buy into a homebuilder, and that was before Abu Dhabi injected $7.5 Billion into Citigroup.
Measuring stock price alone is no way to judge, but looking at the sell-offs from the recent highs may be a judge. Some are down more than 80% from their 52-week highs.
Tick PRICE CHANGE $52-WEEK MKT-CAP
DHI $10.23 (-$0.35; -3.31%) $10.46-31.13 $3.22B
TOL $18.12 (-$0.01; -0.06%) $18.12-35.64 $2.84B
LEN $14.08 (-$0.42; -2.90%) $14.50-56.54 $2.26B
PHM $8.92 (-$0.24; -2.62%) $9.00-35.56 $2.28B
CTX $17.93 (-$0.45; -2.45%) $18.34-58.42 $2.18B
NVR $442.59 (+$8.59; +1.98%) $398.96-851.96 $2.27B
KBH $18.65 (-$1.00; -5.09%) $19.61-56.08 $1.92B
MDC $32.15 (-$0.40; -1.23%) $32.49-60.34 $1.47B
RYL $19.76 (-$0.26; -1.30%) $19.97-60.13 $831.58M
HOV $6.95 (+0.02; +0.29%) $6.92-38.66 $432.32M
BZH $7.12 (+0.15; -2.06%) $7.06-48.60 $279.16M
We aren’t going to make a determination yet as to which ones will live and which ones will bite the dust. Unfortunately you can’t even trust the balance sheets right now because there is simply no way to calculate the off-book transactions, the value writedowns that each will fess up to, and how many of these homes that were juiced-up and sold above market with rebates and incentives that some of the builders will ultimately have to take back at some point in the future.
At least one or some will likely fail. History would dictate that some cannot survive the malaise if it continues at this rate. Ultimately, some will thrive after this dust storm settles. But "ultimately" can be a long ways off.
If you noticed the news this morning you saw a 4.5% decrease in housing prices in Q3 2007 over Q3 2006, and that was after a 2.2% decrease in Q2. There is no price rebound expected in 2008, and foreclosures are expected to rise as well.
The SPDR S&P Homebuilders ETF (AMEX:XHB) shares are down 0.8% at $17.05 late in the day.
DR Horton (DHI), Toll Brothers (TOL), Lennar (LEN),Pulte (PHM), Centex (CTX), NVR Inc. (NVR), MDC Holdings (MDC), Ryland (RYL), Hovnanian (HOV), Beazer (BZH)……
Jon C. Ogg
November 27, 2008
24/7 Wall St. has an open email distribution list with other similar briefs and stories where we summarize and preview data for those interested. It is usually sent out two to three times per week.
| Today’s top tickerspy Indexes | |
| Home Furnishing R... | +14.1% |
| Ethanol and Biofu... | +5.1% |
| Electronics Retai... | +2.1% |
| Diabetes Stocks | +2.0% |
| Memory Chip Stock... | +2.0% |
 | |
| |
RSS Updates
Email Updates
