The Unusual Suspects (AIG, AAPL, APOL, ABIO, DG, LULU, MOS, POT, RSH, BBY, RAD, MOS, RIMM)

This weekend has many big names in the Unusual Suspects.  We have a few earnings stragglers, but there are many issues outside of earnings to watch.  This week’s unusual suspects are American International Group Inc. (NYSE: AIG), Apple Inc. (NASDAQ: AAPL), Apollo Group Inc. (NASDAQ: APOL), ARCA biopharma, Inc. (NASDAQ: ABIO), Dollar General (NYSE: DG), Lululemon Athletica Inc. (NASDAQ: LULU), Mosaic Co. (NYSE: MOS), RadioShack Corp. (NYSE: RSH), Research-in-Motion Ltd. (NASDAQ: RIMM), Rite Aid Corp. (NYSE: RAD), and even a call potentially for the PowerShares DB US Dollar Index Bullish (NYSE: UUP).

On earnings previews we have included Thomson Reuters estimates and given color on the valuation and other metrics.  On the non-earnings stocks we have previews for what lies ahead.

American International Group Inc. (NYSE: AIG)… yep AIG.  Bruce Berkowitz has been accumulating shares and this weekend’s print edition of Barron’s was the platform for Berkowitz to tout this stock.  He noted, “Here is a company that is tremendously solid, but just really blew it on the derivatives… AIG is starting to recover…. All of my insurance is now with AIG…. the company is generating cash…. it is starting to grow in certain areas.  Most importantly is this; “…and that it has paid the government back. Eventually they will be able to pay the government in full.”  Berkowitz may have smoothed over a few minor details that of course are not minor at all, but he did get to tout his pick here.

Apple Inc. (NASDAQ: AAPL) is perhaps going to be the biggest non-earnings tech stock in focus this coming week.  The highly awaited and poorly named iPad is being released.  If you are a techie or if your friends are, chances are that you or some of them have already pre-ordered your iPad for the April 3 pickup date.  The company will have missed any benefit for its first calendar quarter but this will go into the next quarter ahead.  The Wi-Fi models start at $499 for the 16GB model and get up to $699 for the 64GB model.  The Wi-Fi + 3G models start at $629 for the 16GB and go up to $829 for the 64GB model, plus the 3G data plan costs in addition.  Shares closed at $230.90 and hit a new all-time high of $231.95.  We’ll see how this goes, but generally after huge pre-release runs high we expect profit taking.

ARCA biopharma, Inc. (NASDAQ: ABIO) is going to be on every trader’s radar this next week.  That is what a 200% return in a single day ends up doing, and this is now in the ten-bagger quest.  The company was issued a patent on methods of treating heart failure patients with bucindolol based on genetic testing, called “Methods for Treatment with Bucindolol Based on Genetic Targeting” as patent #7,678,824.  There are some issues to consider here, and it seems a shoe-in that the company will do a secondary offering or a private placement.

Apollo Group Inc. (NASDAQ: APOL) has earnings Monday morning and estimates are $0.81 on $1.08 billion in revenues.   An issue to watch outside of earnings is the charges and allowances that the company may disclose, but we already saw disappointing guidance in mid-February and an increased share buyback.  With a price of $61.28 the bull market has effectively brought the stock back to the pre-warning level of $61.45.

Dollar General (NYSE: DG) is up for earnings Wednesday morning and this is really the first full post-IPO quarter as a public company with its books open by our count.  Estimates from are $0.43 EPS on $3.19 billion in revenues and at $24.99 its post IPO range is only $21.30 to $26.51.  Many fear more and more private equity stake sales per S-3 filings on any strength, and few want to reward private equity buyouts that came public again just to give liquidity.

Lululemon Athletica Inc. (NASDAQ: LULU) was listed as the #1 stock chart in the IBD 100 this weekend.  This is after the company beat earnings and more than doubled earnings from a year ago.  At $40.57, we’d note that the 52-week trading range is $7.75 to $40.95.  Its market cap is $2.85 billion and this last week saw shares rise from about $33 to over $40 on post-earnings.

Mosaic Co. (NYSE: MOS) reports Thursday afternoon.  The tell is the recent good news out of Potash Corp. of Saskatchewan (NYSE: POT) After it raised guidance.  Estimates on Mosaic are $0.63 EPS on $1.81 billion in revenues.  It is up over 60% from a 52-week low and still has $10 before a 52-week high is put in.

RadioShack Corp. (NYSE: RSH) was up over 8% Friday at $23.65 on ‘buyout rumors’ with Best Buy Co. (NYSE: BBY) being the rumored acquirer.  If no deal comes on Monday, there could be some profit taking.  At $23.65, the stock hit a multi-year high of $23.80.   It seems odd that Best Buy would have waited.  They could have bought this one when it was in trouble and Julian Day could have been a larger hero had this come shortly after his return.  Maybe it gets bought, maybe not.  And is it fair to ask if any anti-trust issues would come up as a result?  Maybe, maybe not.

Research-in-Motion Ltd. (NASDAQ: RIMM) reports on Thursday afternoon and estimates are $1.28 EPS on $4.3 billion in revenues, which would be 24% revenue growth and over 40% earnings growth.  The upgrade Friday morning may have put in a positive earnings bias, and RIM has beaten earnings expectations in at least the last four quarters.

Rite Aid Corp. (NYSE: RAD) is up for earnings Thursday morning. Walgreen Co. (NYSE: WAG) had a good post-earnings week but there is a note of a weak flu season.  That cannot be isolated, but Rite Aid is also in a 13 or 14 year turnaround.  At $1.68, a $0.32 to $2.35 range over the last 52-weeks, and an earnings estimate for a loss of -$0.19, we’d put this one in the trader-category more than the investor category.

As far as the US Dollar, our affiliate Adam Hewison is looking for more dollar strength.  His new video has another 2% or more to the next target.  This would also pertain to the PowerShares DB US Dollar Index Bullish (NYSE: UUP), although it is more diversified and does not get the moves against the Euro.

As always, these Thomson Reuters estimates are likely to change as we get closer to each earnings event next week.  Stay tuned.  You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG