The Unusual Suspects For The Week Ahead (AA, APOL, DUK, PGN, ENDP, FE, AYE, GENZ, INTC, JPM, MMI, RVBD, THC, UNP, WFC, USB)

Our feature of “The Unusual Suspects” is back after not having enough consistent planned events during the last two weeks of the holidays.  We have earnings due, cases happening, FDA events, mergers, rumors and more.  The cast of characters in The Unusual Suspects of issues to watch in the week ahead includes Alcoa, Inc. (NYSE: AA), Apollo Group Inc. (NASDAQ: APOL), Duke Energy Corporation (NYSE: DUK), Progress Energy Inc. (NYSE: PGN), Endo Pharmaceuticals Holdings Inc. (NASDAQ: ENDP), FirstEnergy Corp. (NYSE: FE), Allegheny Energy Inc. (NYSE: AYE), Genzyme Corporation (NASDAQ: GENZ), Intel Corporation (NASDAQ: INTC), J.P. Morgan Chase & Co. (NYSE: JPM), Motorola Mobility, Inc. (NYSE: MMI), Riverbed Technology, Inc. (NASDAQ: RVBD), Tenet Healthcare Corporation (NYSE: THC), and Union Pacific Corporation (NYSE: UNP)  We also have an issue around Wells Fargo & Co. (NYSE: WFC) and US Bancorp (NYSE: USB) to watch that could impact many banks.

We have provided the expected events, added in background and price data, added in color on each where applicable, and more.

Alcoa, Inc. (NYSE: AA) kicks off earnings Monday after the close and Thomson Reuters has earnings estimates of $0.19 EPS on $5.68 billion in revenues.  Be advised that at $16.42 its 52-week range is $9.81 to $17.60 and also know that this was around $12.00 before its October earnings.

Apollo Group Inc. (NASDAQ: APOL) is also due to report earnings Monday after the close.  It finds itself between the days of former growth and regulation out the (you know what)… It cannot be a value stock even if the numbers today suggest so.  The  regulation affecting forward business throws too many variables into the mix.  Thomson Reuters has estimates of $1.35 EPS and $1.26 billion in revenues.  At $37.98, its 52-week trading range is $33,75 to $66.69.

Duke Energy Corporation (NYSE: DUK) with a $23.5+ billion market cap is reported by the WSJ to be acquiring Progress Energy Inc. (NYSE: PGN) with its $13.1 billion market cap.  The WSJ homepage notes: “Duke Energy is close to a deal to buy Progress Energy in an all-stock merger that would value its smaller rival at more than $13 billion.”

Endo Pharmaceuticals (NASDAQ: ENDP) announced late Friday night that it received a complete response letter from the FDA on the application of its new formulation of OPANA® ER designed to be crush resistant.  Endo noted that this does NOT need those additional clinical studies be conducted for approval of the NDA, but noted that it currently anticipates responding to the FDA by mid-2011 and would expect a six-month review cycle once its response is filed.  The new formulation of OPANA ER is for moderate to severe pain in patients requiring continuous, around-the-clock opioid treatment for an extended period of time.

FirstEnergy Corp. (NYSE: FE) and Allegheny Energy Inc. (NYSE: AYE) have received federal regulatory merger approval now, but the firms still have state approvals to go through.  FirstEnergy’s $4.7 billion deal comes to paying $27.65 per share to Allegheny holders.

Genzyme Corporation (NASDAQ: GENZ) rose over 4% in the after-hours on Friday on reports that it and Sanofi-Aventis (SNY) are in talks over a merger that would value Genzyme closer to $8.00 per share IF milestones are met.  That took shares up to above $74.00 and the 52-week range is $45.39 to $73.23.

Intel Corporation (NASDAQ: INTC) kicks off technology earnings season this week as its earnings are due this coming Thursday after the close.  Thomson Reuters has estimates of $0.53 EPS and $11.37 billion in revenues.

J.P. Morgan Chase & Co. (NYSE: JPM) kicks off the earnings season for the U.S. banking sector with its earnings report due this coming Friday morning before the open.  Thomson Reuters has estimates of $0.99 EPS and $24.44 billion in revenues.

Motorola Mobility, Inc. (NYSE: MMI) was listed in Barron’s as being the one that could challenge Apple: “Motorola is shaping up as the likely leader in the battle against Apple.”

Riverbed Technology, Inc. (NASDAQ: RVBD) was given the pole position in technical analysis as the #1 of the Investors Business Daily 100.  IBD Followers see as follows: #2 PCLN, #3 FFIV, #4 LULU, #5 BIDU, #6 NFLX, #7 DECK, and #8 CMG.

Tenet Healthcare Corporation (NYSE: THC) announced after the close on Friday that it has adopted a poison pill defense mechanism via a shareholder rights plan to “protect its operating loss carry-forwards (NOLs), which total approximately $2 billion”… It is a move to prevent a takeover proposal from Community Health Systems Inc. (NYSE: CYH) in December.

Union Pacific Corporation (NYSE: UNP) was touted in Barron’s this weekend: “The nation’s No. 1 railroad has emerged from the recession leaner and meaner. It’s grabbing market share from trucks and preparing to raise prices. All aboard!”

Lastly, we wanted to address a ruling on foreclosures, yet again, which could be added pressure to any banks involved in massive ongoing foreclosures and in securitization of these mortgages.  Wells Fargo & Co. (NYSE: WFC) and US Bancorp (NYSE: USB) lost a case in Massachusetts on negligence in foreclosures by not being able to prove ownership of the mortgages at the time of foreclosure.  This may go away as a case by case basis OR it may blossom into legal case precedent that could slow the foreclosure pace for months and months more.  Still, it is one more mark against banks.

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.

Good luck this week as earnings season begins.

JON C. OGG