This Week’s Top Seven Issues (June 8, 2007)
1) THE ROLLER-COASTER MARKET
Thanks a lot Bill Gross. You’re sounding more like Greenspan now that you have him on your advisory board at PIMCO. Depending on how you look atthe sell-off, Gross either was an exacerbation or just noise. The market recovered late Friday on rumors that US Steel (X) was in-play. Technicians had an identity crisis because today should have needed a big gap down before the “Ah-Ha Epiphany.” If you are a bull, a chicken-bull, or a real bear, we came up with a revised list of stocks to look at depending on your flavor.
2) FOUR NEW TECH PICKS, LIKE YOU DIDN’T KNOW THEM
Cramer actually came out with a NEW FOUR HORSEMEN OF TECHNOLOGY, albeit this could have been done much sooner and Amazon.com (AMZN) was the only one that was a bit of a surprise.
3) MERGERS & PRESSURES
Biomet (BMET) is done, deal accepted. Bye-bye. TD AMERITRADE (AMTD) needs to tell S.A.C. & JANA Partners to take their shares and put them somewhere else. The FTC is actually trying to stop Whole Foods (WFMI) from buying Wild Oats (OATS), amazingly enough a deal is under scrutiny. Amgen (AMGN) tries diversifying via acquisition, but at what cost?
4) TWO BEST CULT STOCKS WITH MAJOR NEWS
CMGI, Inc. (CMGI) took a bit of a hammering this week after earnings. If you believed it in it before earnings, then nothing has really changed and the glass may be more half-full than half-empty. Dendreon (DNDN) priced its $75 million offering. Since their back was against the wall and they really needed money, the terms that could have been much more expensive actually look like they got the cash for close to nothing.
5) KEY OFFERINGS
Limelight Networks (LLNW) came public, priced more share at a higher price, and still went up almost 50% on the debut date. Einstein Noah (BAGL)…it’s back, no more NWRG-PINKSHEET ticker It wasn’t an IPO, but sort of a Re-PO. This one will be interesting. SIRIUS Satellite Radio (SIRI) received a $250 million term loan
6) OPEC CRIES WOLF
OPEC actually threatened that it would stop spending money for new technology and on exploration if we keep pushing for more and more biofuels. Sounds to me like they are feeling pinched. Oddly enough, ethanol names were looking horrible yesterday.
7) RETAIL IS SOFT, BUT SOME WINNERS
There were actually some winners in retail. If Bed Bath & eyond (BBBY) had to stupe down to an earnings warning, you knew it was going to be a messy retail report since its buyers are supposed to be insulated from soft economics.
Have a great weekend!
Jon C. Ogg
June 8, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.