We have given some wide expectations, issues to watch, and background data on each stock for this coming week.
The Chile Fund Inc. (NYSE: CH) as a closed-end fund and the iShares MSCI Chile Investable Mkt Idx (NYSE: ECH) as an ETF are going to be important to watch. This is on the heels of an 8.8-magnitude earthquake that severely damaged Chile over the weekend. We do not have a count on deaths and injuries yet, but this may interrupt the country’s GDP growth significantly in 2010. It is always to cover issues from these in a few sentences when you know how much pain and suffering is happening.
CombinatoRx, Incorporated (NASDAQ: CRXX) fell on Friday ahead of the Monday March 1 FDA PDUFA goal date for the review of its Exalgo™ extended-release opioid painkiller tablet new drug application. This NDA application date was moved from Monday, February 22, 2010 to Monday, March 1, 2010 due to federal government closings due to snow. This can be a make or break event due to its micro-cap status. Shares closed down 8% at $1.12 on more than 200% normal trading volume on Friday. The 52-week trading range is $0.41 to $2.60.
Costco Wholesale Corporation (NASDAQ: COST) is scheduled to report earnings Wednesday morning. Thomson Reuters has estimates of $0.71 EPS on about $18.5 billion. We remain focused on valuation here at more than 20-times 2010 earnings estimates and at $60.97 it is within 1% of its 52-week high of $61.52.
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) was given a very positive article in Barron’s over the weekend. The Indian generic drug company closed at $24.61 in its USD ADR and two analysts predicted it could run up to $29.63 and to $30.82 as its sales are expected to double to $3 billion in 2013. It was noted that GlaxoSmithkline (NYSE: GSK) was interested in taking a stake. Its 52-week range is $7.27 to $27.33. If the markets are flat or solid, it seems that Dr. Reddy’s may have up to a 2% or so Barron’s-pop.
Millipore Inc. (NYSE: MIL) has yet to show that a bid is on the table above that it is ‘exploring strategic alternatives’ after last week’s M&A leak. The $6 billion said to be on the table from Thermo Fisher (NYSE: TMO) is said to include debt and there were late-week rumors that 3M Co. (NYSE: MMM) may join the fray here to add Millipore in with its Cuno operations. If a deal is going to come, we’d look for more news on Monday or Tuesday rather than this story just dying down.
National Bank of Greece SA (NYSE: NBG) has become the go-to stock proxy for a vote on the future of Greece in its steady troubles with the Euro. There are mixed reports over Greece’s bailout. The WSJ has said over the weekend that a package is coming by Friday, yet Germany’s Merkel has said the IMF is the only agency which can save Greece, according to a Handelsblatt report. The National Bank of Greece SA (NYSE: NBG) will be THE proxy to watch. As recently as November the Greek ADR would trade a mere half million shares per day. Now that number is closer to 2 million shares per day. This is the proxy to watch Monday for the Greece bailout situation.
Toyota Motor Corp. (NYSE: TM) and Ford Motor (NYSE: F) are on deck for February auto sales on Tuesday. There is now way that weather in the mid-Atlantic and Northeast will not have played a role in hurting the sales comparisons to 2009, but we are going to get to see just how poorly Toyota’s recalls are hurting Toyota and just how much Ford has been able to capitalize in market share. Edmunds noted the lowest Toyota market share in years, yet the stock has not busted really under $71 and traders have supported it. Dennis Gartman on CNBC Friday just said he prefers to be long Ford.
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JON C. OGG
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