24/7 Wall St. » SWC

24/7 Wall St. Closing Bell (GD, ABB, HOG, COP, S, ALU, MO, PEP, TLAB, XOM, AET, BMY, BG, JBLU, LIZ, MJN, REGN, SWY, SWC, TASR, UPS, YNDX, NRGY, SPH, LEAP, AKAM)

Paul Ausick — Thu, 26 Apr 2012 20:06:31 +0000

Markets opened a few ticks lower this morning after a poor report on new claims for unemployment benefits in the US (our coverage here). The report that pending home sales jumped 4.1% lit a fire under investors and pushed equities higher (our coverage here). The EIA report on natural gas supplies held gas prices higher although they’ve dropped back by late afternoon (our coverage here). Yields on 7-year US Treasury notes were at a record low following Fed Chairman Ben Bernanke’s clarification of what “exceptionally low” interest rates mean (our coverage here). The US dollar index fell today, now down -0.17% at 78.932. The GSCI commodity index is up 0.04% at 677.57, with commodities mixed on the slightly weaker dollar. WTI crude oil closed up 0.4% at $104.55/barrel, and Brent crude trades up 0.65% at $119.89/barrel. Gold settled up 1.1% today, at $1,660.50/ounce.

The unofficial closing bells put the DJIA up nearly 114 points to 13,204.70 (0.87%), the NASDAQ rose nearly 21 points (0.69%) to 3,050.61, and the S&P 500 rose 0.67% or more than 9 points to 1,399.99.

There were several analyst upgrades and downgrades today, including General Dynamics Corp. (NYSE: GD) cut to ‘equal-weight’ at Morgan Stanley; ABB Ltd. (NYSE: ABB) cut to ‘neutral’ at JPMorgan; Harley-Davidson Inc. (NYSE: HOG) raised to ‘overweight’ at Barclays; ConocoPhillips (NYSE: COP) raised to ‘neutral’ at Macquarie; and Sprint Nextel Corp. (NYSE: S) maintained as ‘hold’ at Argus.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Alcatel-Lucent S.A. (NYSE: ALU) is down -16.9% at $19.71 (our coverage here); Altria Group Inc. (NYSE: MO) is up 0.9% at $31.96 (our story here); Pepsico (NYSE: PEP) is down -0.3% at $66.44 (our story here); Tellabs Inc. (NASDAQ: TLAB) is down -5.1% at $3.83 (our coverage here); Exxon Mobil Corp. (NYSE: XOM) is down -0.8% at $86.13 (our coverage here); Aetna Inc. (NYSE: AET) is down -8.4% at $45.22; Bristol-Myers Squibb Co. (NYSE: BMY) is down -1.7% at $33.72; Bunge Ltd. (NYSE: BG) is down -2.6% at $65.69; JetBlue Airways Corp. (NASDAQ: JBLU) is down -0.1% at $4.64; Liz Claiborne Inc. (NYSE: LIZ) is up 9.4% at $13.87; Mead Johnson Nutrition Co. (NYSE: MJN) is up XX% at $XX; Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is up 4% at $86.38 after posting a new 52-week high of $87.26n earlier today; Safeway Inc. (NYSE: SWY) is down -2.8% at $21.00; Stillwater Mining Co. (NYSE: SWC) is down -4.6% at $10.69; TASER International Inc. (NASDAQ: TASR) is up 5.7% at $4.39; United Parcel Service Inc. (NYSE: UPS) is down -1.8% at $78.25; and Yandex N.V. (NASDAQ: YNDX) is down -5% at $23.31.

Other standouts from today include the following stocks:

Inergy L.P. (NYSE: NRGY) is up 17% at $19.71. The company is being acquired by Suburban Propane Partners LP (NYSE: SPH). More coverage here.

Leap Wireless International Inc. (NASDAQ: LEAP) is down -20.2% at $6.16. The wireless carrier fell sharply on disappointing quarterly results. More coverage here.

Akamai Technologies Inc. (NASDAQ: AKAM) is down -14.8% at $33.03. The technology provider beat estimates but issued weak guidance.

Stay tuned for Friday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – GDP report
8:30 a.m. – Employment cost index
9:55 a.m. – Reuters/University of Michigan consumer sentiment index

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ABB, AET, AKAM, ALU, BG, BMY, COP, GD, HOG, JBLU, LEAP, LIZ, MJN, MO, NRGY, PEP, REGN, S, SPH, SWC, SWY, TASR, TLAB, UPS, XOM, YNDX

24/7 Closing Bell (AMD, FSLR, POT, PAAS, S, OXY, CVX, CSTR, MRK, BIDU, WY, IPG, SWC, ALGN, STMP, CPSI, CODE, DRIV)

Paul Ausick — Fri, 28 Oct 2011 20:04:59 +0000

Markets opened slightly lower this morning and spent the morning trying to decide on a direction. The Reuters/University of Michigan Consumer Sentiment Index rose more than expected, but even that was not enough to charge up investors. In the early afternoon, advances were leading declines on the NYSE, while the status was just the reverse on NASDAQ. Both oil and gold prices were slightly lower after rising sharply yesterday. So far this month, markets are up a solid 13%.

The unofficial closing bells put the DJIA up nearly more than 21 points to 12,230.35 (0.18%), the NASDAQ fell about -1.5 points (-0.05%) to2,737.15, and the S&P 500 rose 0.03% or about 0.47 points to 1,285.06.

There were several analyst upgrades and downgrades today, including a raise for Advanced Micro Devices Inc. (NYSE: AMD) to ‘outperform’ at Wells Fargo. First Solar, Inc. (NASDAQ: FSLR) was maintained at ‘buy’ but the target price was cut to $90 at Argus; Potash Corp. of Saskatchewan Inc. (NYSE: POT) cut to ‘sector perform’ at Scotia; Pan American Silver Corp. (NASDAQ: PAAS) cut to ‘sector perform’ at CIBC; Sprint Nextel Corp. (NYSE: S) raised to ‘outperform’ at Macquarie; and Occidental Petroleum Corp. (NYSE: OXY) raised to ‘outperform’ with a new target price of $135 at Credit Suisse.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Chevron Corp. (NYSE: CVX) is up 0.3%, at $109.99, two pennies short of a new 52-week high; Coinstar, Inc. (NASDAQ: CSTR) is down about -7.6%, at $48.91; Merck (NYSE: MRK) is up 2.3%, at $35.10; Baidu, Inc. (NASDAQ: BIDU) is up 4.33% (our coverage here), at $144.38; Weyerhaeuser Co. (NYSE: WY) is up 1.6%, at $18.23; and The Interpublic Group of Companies, Inc. (NYSE: IPG) is up 11.6%, at $9.94 (our coverage here).

Several other standouts from today follow …

Stillwater Mining Co. (NYSE: SWC) is up more than 27%, at $12.65. The company beat earnings estimates this morning, and has reiterated its production estimates for platinum and palladium for 2011. Stillwater recycled 133,500 ounces of platinum, palladium, and rhodium in the third quarter, up 70% from the same period a year ago.

Align Technology, Inc. (NASDAQ: ALGN) is up more than 34%, at $23.94. The company posted solid earnings for the third quarter and announced a $150 million stock buyback program. Align manufactures and sells Invisalign teeth straightening products.

Stamps.com Inc. (NASDAQ: STMP) is up more than 25%, at $32.48 — a new 52-week high — following an outstanding earnings report. Stamps.com raised its non-GAAP EPS estimate for the second time this year, to $1.20-$1.40. The company originally estimated non-GAAP EPS of $0.85-$1.05.

Computer Programs and Systems Inc. (NASDAQ: CPSI) are down more than -28%, at $51.10. The company missed both revenue and EPS estimates for the quarter, and the fourth-quarter outlook is also weak. The company’s $1.44/share dividend takes some of the sting out of the poor results.

Spansion Inc. (NYSE: CODE) is down more than -25%, at $10.46, after posting a new 52-week lower earlier today of $9.17. The company released a weaker fourth-quarter forecast and announced the closure of its plant in Kuala Lumpur as part of its effort to cut costs.

Digital River Inc. (NASDAQ: DRIV) is down more than -19%, at $18.52. The company’s third-quarter earnings were short of expectations and the fourth-quarter forecast was lowered.

Stay tuned for Monday. We have noted the following events (all times Eastern):

9:45 a.m. — Chicago Purchasing Managers Index
3:00 p.m. — USDA farm prices

Paul Ausick

Filed under: Market Close Tagged: ALGN, AMD, BIDU, CODE, CPSI, CSTR, CVX, DRIV, FSLR, IPG, MRK, OXY, PAAS, POT, S, STMP, SWC, WY

Top Analyst Upgrades & Downgrades (AGU, AEM, AXP, AMR, BHP, COF, CMG, SNP, CEO, JNY, ERIC, PTR, RVBD, SODA, SON, SWC, WRB)

Administrator — Tue, 04 Oct 2011 12:27:47 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls. Despite the weakness, there are still upgrades taking place.

Agrium, Inc. (NYSE: AGU) named Bull of the Day at Zacks.
Agnico-Eagle Mines Ltd. (NYSE: AEM) Raised to Outperform at Credit Suisse.
American Express Company (NYSE: AXP) Cut to Hold at Jefferies.
AMR Corporation (NYSE: AMR) Raised to Outperform at Rodman & Renshaw.
BHP Billiton (NYSE: BHP) Raised to Outperform at Credit Suisse.
Capital One Financial Corp. (NYSE: COF) Cut to Hold at Jefferies.
Chipotle Mexican Grill Inc. (NYSE: CMG) Started as Outperform with $370 target at Credit Suisse.
China Petroleum & Chemical Corp. (NYSE: SNP) Started as Neutral at Credit Suisse.
CNOOC Ltd. (NYSE: CEO) Started as Outperform at Credit Suisse.
The Jones Group Inc. (NYSE: JNY) Value stock of the day at Zacks.
LM Ericsson Telephone Co. (NASDAQ: ERIC) Raised to Buy at Citigroup.
PetroChina Co. Ltd. (NYSE: PTR) Started as Neutral at Credit Suisse.
Riverbed Technology, Inc. (NASDAQ: RVBD) Cut to Equal-Weight at Barclays.
SodaStream International Ltd. (NASDAQ: SODA) Raised to Buy at Deutsche Bank.
Sonoco Products Co. (NYSE: SON) Cut to Hold at Argus.
Stillwater Mining Company (NYSE: SWC) Removed from Focus List ar Credit Suisse.
W.R. Berkley Corp. (NYSE: WRB) named Bear of the Day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: AEM, AGU, AMR, AXP, BHP, CEO, CMG, COF, ERIC, JNY, PTR, RVBD, SNP, SODA, SON, SWC, WRB

Top Debt & Credit Rating Agency Actions (BAC, WFC, C, CNH, RAH, SWC, FIATY)

Administrator — Wed, 21 Sep 2011 19:32:20 +0000

Our daily look at credit and debt ratings actions has to lead off with the news that Moody’s has lowered its ratings on Bank of America Corp. (NYSE: BAC), Wells Fargo Corp. (NYSE: WFC), and Citigroup Inc. (NYSE: C). The move was not totally unexpected, but it’s a doozy nevertheless.

In a ratings action on sovereign debt, Standard & Poor’s lowered its long-term counterparty credit rating on seven Italian banks from ‘A+’ to ‘A’ and affirmed the agency’s ratings on short-term debt at ‘A-1′. The seven banks are Mediobanca SpA, Findomestic Banca SpA, and Intesa Sanpaolo SpA and its core subsidiaries Banca IMI SpA, and Banca Infrastrutture Innovazione e Sviluppo SpA (BIIS) (BIIS), and Cassa di Risparmio in Bologna SpA. Outlooks on all seven banks is negative. S&P also lowered Banca Nazionale del Lavoro SpA (BNL) from ‘AA-/A-1+’ to ‘A+/A-1′ with a negative outlook.

Other companies getting a nod today include CNH Global NV (NYSE: CNH), Ralcorp Holdings Inc. (NYSE: RAH), Stillwater Mining Corp. (NYSE: SWC), and Fiat SpA (OTC: FIATY), owners of US automaker Chrysler.

CNH Global NV (NYSE: CNH) received ratings today from both S&P and Moody’s on the issuance of $859 million in asset-backed securities collateralized by equipment retail installment sales. CNH is a maker of tractors and other farming and construction equipment. The securities are being issued in a series of five notes, of which three senior notes received ‘AAA’ ratings from both agencies. The other senior note received an ‘A-1+’ rating from S&P and an ‘A’ rating from Fitch Ratings. The $26 million offering of Class B subordinated notes received a rating of ‘A+’ from S&P and ‘A’ from Fitch.

Ralcorp Holdings Inc. (NYSE: RAH) remained on CreditWatch with negative implications at S&P following the company’s rejection of the latest merger offer from ConAgra Foods, Inc. (NYSE: CAG). The agency remains “uncertain” concerning Ralcorp’s plan to spin-off its Post Foods group in a tax-free transaction to the company’s shareholders. S&P is dubious about Ralcorp’s ability to maintain cash flow and about Ralcorp’s plans for using the estimated $1 billion in net cash that it will receive from the spin-off.

Stillwater Mining Corp. (NYSE: SWC) received a ‘B2′ rating from Moody’s on a proposed $300 million in senior unsecured notes due 2016. The company’s outlook is rated stable. In a related action, the agency upgraded $30 million in unsecured Montana Board of Investments revenue bonds from ‘Caa1′ to ‘B2′. Stillwater plans to use some of the proceeds from the $300 million issuance to pay part of the cash portion of its $487 million acquisition of Peregrine Metals announced in July.

Fiat SpA (OTC: FIATY) received a downgrade to its corporate family rating and its probability of default rating from Moody’s. Both ratings went down one notch, from ‘Ba2′ to ‘Ba1′. At the same time the agency lowered debt ratings with a negative outlook on three of Fiat’s finance subsidiaries in North America. Moody’s noted that this is the final change related to Fiat’s increase in its stake of Chrysler. Interestingly, what many analysts have seen as a plus in Fiat’s acquisition of Chrysler is the promise of using common technology and parts in all the combined companies’ cars. Moody’s views that as a negative, stating that it “could result in the two companies having to support each other in the event of financial difficulty,” even though Fiat does not guarantee Chrysler’s debt.

Paul Ausick

Filed under: Analyst Calls, Bonds Tagged: BAC, C, CNH, FIATY, RAH, SWC, WFC

Top Analyst Upgrades & Downgrades (AGN, DVA, DNDN, ENTR, HES, MCD, STX, SKX, S, SWC, TWX, WFM)

Administrator — Thu, 04 Aug 2011 12:13:01 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

Allergan Inc. (NYSE: AGN) Cut to Neutral at Piper Jaffray.
DaVita, Inc. (NYSE: DVA) Raised to Overweight at Piper Jaffray.
Dendreon Corporation (NASDAQ: DNDN) Raised to Neutral at Credit Suisse; Cut to Neutral at Baird; Cut to Hold at Needham; Cut to Underperform at BofA/ML.
Entropic Communications, Inc. (NASDAQ: ENTR) Cut to Neutral at JPMorgan.
Hess Corporation (NYSE: HES) Reiterated Buy with $95 target at Argus.
McDonald’s Corporation (NYSE: MCD) Raised to Overweight at Piper Jaffray.
Seagate Technology PLC (NASDAQ: STX) Raised to Hold at S&P Equity Research (late Wednesday call).
Skechers U.S.A. (NYSE: SKX) Called Bear of the Day at Zacks.
Sprint Nextel Corporation (NYSE: S) Raised to Hold at Stifel Nicolaus.
Stillwater Mining Company (NYSE: SWC) Kept as Outperform but cut target to $22 at Credit Suisse.
Time Warner. Inc (NYSE: TWX) Reiterated Outperform with $40 target on Focus List at Credit Suisse.
Whole Foods Market Inc. (NASDAQ: WFM) Maintained Outperform as Bull of the Day at Zacks.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: AGN, DNDN, DVA, ENTR, HES, MCD, S, SKX, STX, SWC, TWX, WFM

Top Analyst Upgrades & Downgrades (AEG, AA, AGU, RDEA, CTL, CERN, COP, CNX, DMND, FCX, GOOG, IBN, JPM, NEM, BTU, SWC, STM, RIG, VICL)

Administrator — Fri, 15 Jul 2011 12:33:46 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Friday morning.

AEGON N.V. (NYSE: AEG) maintained “Buy” but removed from Conviction Buy List at Goldman Sachs.
Alcoa Inc. (NYSE: AA) Started as Outperform with $20 target at Credit Suisse.
Agrium Inc. (NYSE: AGU) Reiterated Buy as Value at Zacks.
Ardea Biosciences Inc. (NASDAQ: RDEA) Raised to Outperform as Bull of the Day at Zacks.
CenturyLink Inc. (NYSE: CTL) Cut to Underperform as Bear of the Day at Zacks.
Cerner Corporation (NASDAQ: CERN) Added to Conviction Buy List at Goldman Sachs.
ConocoPhillips (NYSE: COP) Reiterated Buy at Argus.
CONSOL Energy Inc. (NYSE: CNX) Started as Outperform with $62 target at Credit Suisse.
Diamond Foods, Inc. (NASDAQ: DMND) Cut to Hold at Deutsche Bank.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) Started as Buy at BofA/ML; Started as Outperform at Credit Suisse.
Google Inc. (NASDAQ: GOOG) Reinstated as Buy at Needham; Reiterated Buy with $800 target at Canaccord Genuity.
ICICI Bank Ltd. (NYSE: IBN) Cut to Neutral at Credit Suisse.
JPMorgan Chase & Co. (NYSE: JPM) Reiterated Hold at Argus.
Newmont Mining Corp. (NYSE: NEM) Started as Neutral with $65 target at Credit Suisse.
Peabody Energy Corp (NYSE: BTU) Started as Outperform at Credit Suisse.
Stillwater Mining Company (NYSE: SWC) Started as Outperform with $24 target on Focus List at Credit Suisse.
STMicroelectronics NV (NYSE: STM) Cut to Equal-Weight at Morgan Stanley.
Transocean Ltd. (NYSE: RIG) Raised to Buy at Jefferies.
Vical Inc. (NASDAQ: VICL) Reiterated Buy with $8 target at Canaccord Genuity.

JON C. OGG

Filed under: Analyst Calls Tagged: AA, AEG, AGU, BTU, CERN, CNX, COP, CTL, DMND, FCX, GOOG, IBN, JPM, NEM, RDEA, RIG, STM, SWC, VICL

Top Analyst Upgrades & Downgrades (ADTN, BMR, COF, CETV, ERTS, EPB, IDIX, LYG, MMM, NTGR, PLD, PL, SWC, TOL, TSM, VRTX, WSM)

Administrator — Thu, 14 Jul 2011 12:34:26 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

Adtran Inc. (NASDAQ: ADTN) Reiterated Buy with $49 target at Argus.
BioMed Realty (NYSE: BMR) Raised to Buy at Jefferies.
Capital One Financial Corporation (NYSE: COF) Reiterated Sell at Argus.
Central European Media Enterprises Ltd. (NASDAQ: CETV) Started as Underperform at Credit Suisse.
Electronic Arts Inc. (NASDAQ: ERTS) Reiterated Hold at Argus.
El Paso Pipeline Partners, L.P. (NYSE: EPB) Started as Outperform at Credit Suisse.
Idenix Pharmaceuticals Inc. (NASDAQ: IDIX) Started as Neutral at Credit Suisse.
Lloyds Banking Group plc (NYSE: LYG) Raised to Buy at Goldman Sachs.
3M Co. (NYSE: MMM) Cut to Underperform at BofA/ML.
Netgear Inc. (NASDAQ: NTGR) Cut to Equal-Weight at Barclays.
ProLogis (NYSE: PLD) Cut to Underperform at Jefferies.
Protective Life Corp. (NYSE: PL) Raised to Buy at BofA/ML.
Stillwater Mining Co. (NYSE: SWC) Cut to Neutral at JPMorgan.
Toll Brothers Inc. (NYSE: TOL) Raised to Buy at Goldman Sachs.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) Cut to Neutral at JPMorgan.
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) Started as Underperform at Credit Suisse.
Williams-Sonoma Inc. (NYSE: WSM) Raised to Buy at Goldman Sachs.

JON C. OGG

Filed under: Analyst Calls Tagged: ADTN, BMR, CETV, COF, EPB, ERTS, IDIX, LYG, MMM, NTGR, PL, PLD, SWC, TOL, TSM, VRTX, WSM

Commodities Watch: Margin Increases, Possible Flooding Hit Crude; Growers, Traders Watching the Weather; Platinum Forecast at $1,925 in 2011 (CME, SWC, PPLT, PGM)

Administrator — Tue, 10 May 2011 19:15:27 +0000

Today’s commodities news starts with a rise in margin requirements on crude oil contracts, and then looks at weather effects on both crude oil refining and US grain prices. We conclude with a look at the forecast for 2011 for the platinum group metals.

The CME Group Inc. (NASDAQ: CME) has raised margin requirements for crude oil futures contracts, effective today. Contracts for WTI crude on the Nymex have risen from an initial speculative rate of $6,750 to $8,438, and the maintenance rate has risen from $5,000 to $6,250. That’s a jump of about 25% on a 1,000-barrel contract. Hedging rates also went up, from $5,000 to $6,250 for both initial and maintenance bids.

Perhaps the surprising thing is that it still costs so little. The initial rate increase amounts to barely 8% of the cost on a speculative bid on oil priced at about $100/barrel. The impact on crude traders was brief, as WTI crude prices dipped below $100/barrel early this morning, but have fought back to near $103/barrel.

One also has to wonder if CME will raise margins again in an effort to cool off volatility in the crude market. A large rise in the margins could drive off some of the speculative positions in WTI crude, but the danger to CME is that lower margins on the ICE will attract CME’s traders. The CME also has to be careful that it doesn’t whip up a political storm, where politicians once again take aim at speculation in the crude markets.

Gasoline prices could also feel the effects of flooding along the lower Mississippi as some refineries may be shut down as the floodwaters flow south. A refinery shutdown will almost certainly lead to a rise in the price of crude as well as refined products. That’s a little weird since the refiners won’t be processing crude it makes little sense that the price of crude should rise. But that’s the oil market.

The floodwaters and other weather events are also bearing down on grains. Global corn reserves are expected to be forecast at a four-year low tomorrow by the US Department of Agriculture. Corn planting has now hit about 40% of expectations, as farmers rush to get the crop into the ground before mid-May. Corn prices are up less than 1% today, to around $7.14/bushel as buyers wait to see what the weather has in store.

Wheat prices are up about 2%, to around $8.06/bushel in Chicago, as spring wheat planting proceeds at its slowest pace in nearly 20 years. Just 22% of the US spring wheat crop was in the ground as of May 8. Cold, wet weather gets the blame for the drop from an annual average of 61% planted by now.

Finally today, metals consultants GFMS Ltd. have forecast a rise in platinum prices from their current level of about $1,800/ounce to $1,925/ounce by the end of the year. This in spite of the fact that a surplus of the metal is expected again this year.

GFMS attributes the rise in platinum prices to investor activity, not industrial demand. The firm said that 550,000 ounces of platinum were purchased for ETF investment in 2010 and that retail investors purchased another 76,000 ounces.

The ETFS Physical Platinum Shares ETF (NYSE: PPLT) is trading this afternoon up slightly at $178.60, within a 52-week range of $148.26-$186.69. The iPath DJ-UBS Platinum Total Return Sub-Index ETN (NYSE: PGM) is also up slightly at $42.17, within a 52-week range of $34.82-$44.57.

Paul Ausick

Filed under: Agriculture, Commodities Tagged: CME, PGM, PPLT, SWC

Top Analyst Upgrades & Downgrades (AMZN, ACAS, AINV, ACI, BMRN, COF, CSCO, EMR, FSLR, IACI, IBM, JOYG, LXK, PNRA, SWC, TSM, WYNN)

Administrator — Wed, 27 Apr 2011 12:23:24 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Wednesday morning.

Amazon.com, Inc. (NASDAQ: AMZN) Reiterated Outperform and raised target to $220 at Oppenheimer; Reiterated Buy with $198 target at BofA/ML; Maintained Buy with $220 target at Canaccord Genuity.
American Capital, Ltd. (NASDAQ: ACAS) Raised to Outperform at Wells Fargo.
Apollo Investment Corporation (NASDAQ: AINV) Cut to Market Perform at Wells Fargo.
Arch Coal Inc. (NYSE: ACI) Cut to Sell at S&P Equity Research (late-Tuesday call).
BioMarin Pharmaceutical (NASDAQ: BMRN) Cut to Neutral as Bear of the Day at Zacks.
Capital One Financial Corp. (NYSE: COF) Maintained Buy but raised target to $65 at BofA/ML.
Cisco Systems, Inc. (NASDAQ: CSCO) Maintained Neutral but cut target to $22 at BofA/ML.
Emerson Electric Co. (NYSE: EMR) Raised to Outperform at Oppenheimer.
First Solar, Inc. (NASDAQ: FSLR) Raised to Buy at Kaufman Bros.
IAC/InterActiveCorp. (NASDAQ: IACI) Raised to Buy at Citigroup; Raised target to $39 at BofA/ML.
International Business Machines Corp. (NYSE: IBM) Reiterated Buy and Raised target to $190 at Argus.
Joy Global, Inc. (NASDAQ: JOYG) Maintained Outperform as Bull of the Day at Zacks.
Lexmark International Inc. (NYSE: LXK) Cut to Hold at Citigroup.
Panera Bread Company (NASDAQ: PNRA) Maintained Neutral but raised target to $135 at BofA/ML
Stillwater Mining Company (NYSE: SWC) Reiterated Outperform and $28 target at Credit Suisse.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) Raised to Conviction Buy List at Goldman Sachs.
Wynn Resorts Ltd. (NASDAQ: WYNN) Maintained Buy at Zacks.

You can join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: ACAS, ACI, AINV, AMZN, BMRN, COF, CSCO, EMR, FSLR, IACI, IBM, JOYG, LXK, PNRA, SWC, TSM, WYNN

European Union Aims to Outlaw Cars, and China Could be Using Too Much Food to Make Biofuel (PALL, PPLT, SWC)

247wallst — Tue, 29 Mar 2011 20:10:56 +0000

Time now for our daily look at commodity prices and news. While a new plan from the European Union might seem to belong more properly in our Alternative Energy Daily, it’s being noted here for its potential impact on metals. Specifically, the EU plan sets a goal for 2050 that calls for cities to phase out gasoline-powered cars completely.

That may be a hopelessly optimistic goal, but if the EU can even get a start on such a plan, it could play havoc with the platinum and palladium, both of which are used extensively in catalytic converters. Platinum and palladium prices have risen nicely in the past year, with the ETFS Physical Palladium Shares ETF (PCX: PALL) gaining nearly 60% in the past 12 months and the ETFS Physical Platinum Shares ETF (PCX: PPLT) up a much more modest 6% or so. Stillwater Mining Co. (NYSE: SWC), the only platinum and palladium miner in the US, has seen its shares rise more than 60% in the past 12 months.

The world’s largest palladium supplier, Russia, is reportedly seeing shrinking stockpiles and shipments to Switzerland, an important palladium hub, are down by -12%. Russia treats information about its palladium extraction as a state secret, so it is difficult to get accurate information.

Cocoa prices have fallen more than 4% today, to below $3,100/metric ton. Traders speculate that the commodity hit a technical marker that sparked the sell-off because the political situation in Ivory Coast has not changed markedly for the better. If a political solution is reached, however, traders do expect prices to fall on forecasts of high West African production in 2011.

Prices for arabica coffee also fell, and again the cause is thought to be technical indications. Supplies of the high-quality beans is still tight and is expected to remain tight for some time. Prices for robusta beans, a lower grade of coffee, have fallen following more shipments from Vietnam, the world’s top producer of robusta beans.

And if you take sugar in your coffee, raw sugar prices are rising as well as the Brazilian government is urging millers to produce more cane-ethanol. Higher prices for cane-ethanol are driving the government’s push, as the demand for the fuel is expected to keep refined sugar prices high.

The US International Trade Commission has just released a study on “China’s Agricultural Trade: Competitive Conditions and Effects on US Exports,” which includes a section on how China’s state-directed policy of producing up to 12 million metric tons of biofuels by 2020 may affect the country’s food security. [http://www.usitc.gov/publications/332/pub4219.pdf] In 2010, China became a net importer of corn, taking more than 1 million metric tons, probably because as much as 80% of China’s ethanol production comes from corn.

Paul Ausick

Filed under: General Tagged: PALL, PPLT, SWC