Tuesday, July 19, 2011
WHAT TO WATCH: U.S. housing starts probably rose 2.7 percent in June, economists said, 8:30 a.m. House Republicans today plan to defy President Obama�s promised veto by voting to slash spending and condition a $2.4 trillion debt-ceiling increase. The ECB may be willing to accept Greek bonds as collateral in the event of a short-term selective default, Governing Council member Nowotny suggested.
Here's the link to today's MrTopStep Global Insights Report (PDF) for July 19, 2011:
Netflix target raised to $360 from $280 at Oppenheimer - Oppenhei
mer raised its target on Netflix as the firm began f
Netflix target raised to $360 from $280 at Oppenheimer - Oppenheimer raised its
target on Netflix as the firm began f
Netflix target raised to $360 from $280 at Oppenheimer - Oppenheimer raised
its target on Netflix as the firm began factoring in estimates for the growth
of the company's international business. As a result ,the firm significantly
raised its overall estimates for the company and it maintains an Outperform
BAC-- Second-Quarter Loss of $0.90 per Share, in Line With Previous Estimates. Excluding Certain Mortgage-Related Items and Other Selected Items, Net Income Was $0.33 per Share
? C-- Citigroup Hiring Offensive Bets on Energy Bankers to Boost Fees
1. BNY Mellon Second-Quarter Profit Rises as Market Lifts Assets
2. CVC Capital Said to Be Near $1.9 Billion Purchase of ConvergEx
? NORDEA-- Nordea Second-Quarter Profit Advances 30% on Fewer Bad Loans
? MERGER & DEAL NEWS�
1. NCR Flirts With Junk in Priciest Deal to Boost Margin
2. Hulu�s Owners Said to Offer Bidders Five-Year Program Extension
3. Merchants Bank to Raise Up to $5.4 Billion in Rights Offer
4. New York City Selling $600 Million as Yields Fall: Muni Credit
5. M&A Watch: CLX, CVGX, BGIQ, NCR, RADS, AWH, CHIHF, HNHPF, OZMLF
1. Oil Rises for First Day in Four
2. IEA Is Unlikely to Extend Emergency Fuel Release
3. Copper Reaches Three-Month High
4. Sugar Rises
5. Cocoa Drops
6. Corn Climbs
7. Booming Cotton No Boon to African Farmers
? HEALTH CARE� Drugmakers may face slower reviews for products under proposed updates to U.S. law while gaining more contact with regulators and a predictable system for reporting side effects.
? IBM� IBM Gains After Raising Profit Forecast on Software Demand
? AAPL-- Apple Profit Seen Rising as IPad Buying Makes Up for IPhone Lull
1. News Corp. Said to Consider Elevating Chase Carey to CEO News Corp.
2. Has Debt Rating Placed on CreditWatch Negative by S&P
? ELUXY-- Electrolux Plunges as Profit Misses Estimates on Slowing Demand
? KO� Coca-Cola 2Q Comparable EPS, Rev. Beat Est.
? CSCO� Cisco Cutting About 6,500 Jobs, Take Pretax Charge Up to $1.3b
? BIDU-- Baidu to Pay Record Labels for Beyonce, Lady Gaga Music in China
? UNH-- UnitedHealth Net Beats Analyst Estimates on Lower Costs
? LLY� Lilly Says Alzheimer Patients on Failed Drug Didn�t Improve
? NEW HIGHS: 78. AAPL, ATRI, WYNN, FOSL, ENR, DV, SWN, VRTS, RGLD, VRX, PTEN.
? NEW LOWS: 112. GS, AFL, NTRS, CSC, VMC, CMA, CREE, AIG, PJC, MS, JEF, WBMD, ARO, LL, STRI, ITG, LUV, BAC, SANM, JNS, AMCC, DAL, LCC, AMR, MTG. More than 9 decliners on NYSE for every stock that rose
? OVERBOUGHT: 74.
? OVERSOLD: 331
GS - miss was largely in FICC which came in $1.5B light of consensus. Investing & Lending at $1B was better than $600 mill expected. Keep in mind, yesterday afternoon, buy-side investors were telling us they saw upside to $2.50 - $2.75 for GS 2Q EPS, with upside coming from better fixed income. BV $131.44, TBV $121.60, would not be surprised to see stock trade right twd TBV. - JPM
KB Home (KBH: Buy, PT $13.00, close $9.23) - We believe management has provided ample disclosure surrounding the potential impact to KBH�s liquidity position pro forma for South Edge and the August 2011 bond maturity and we find that the recent weakness in the capital structure is overdone at current levels (interesting to highlight that credit has underperformed the equity year-to-date). We are upgrading KBH Senior Unsecured Notes due 2015 to 2018 to a �BUY� recommendation from �SELL� as the spread widening over the past few months has exceeded our expectations and relative value metrics support tightening in our opinion. We are also upgrading the KBH 5.75% Senior Notes due 2014 to a �BUY� recommendation from �FAIR VALUE� and maintain our �FAIR VALUE� rating for the KBH 6.375% Senior Notes due 2011. We are downwardly revising our FY11 EPS estimate to a loss of ($2.36) per share from ($1.89) per share, which largely stems from the 2Q11 EPS loss. Our 4Q10 EPS estimate has been upwardly revised from a loss of ($0.05) per share to $0.09 per share. We are upwardly revising our FY12 EPS estimate to $0.31 per share from $0.21 per share. @ crt
WYNN Resorts, Ltd. (WYNN: Fair Value, PT $147, close $164.89) - Yesterday, Wynn Resorts, Ltd. reported stronger-than-expected 2Q11 operating results with adjusted EPS of $1.60 comparing with CRT�s $0.99 estimate and consensus estimate at $1.03. Stronger-than-expected 2Q11 results were driven by higher-than-expected Las Vegas table hold percentage, a higher Macau mass market hold percentage and non-casino revenues that exceeded our expectation at both WYNN Macau and WYNN Las Vegas. We are increasing our consolidated adjusted EBITDA estimate to $1,570.0 million in 2011, $1,694.0 million in 2012 and $1,857.3 million in 2013; and our adjusted EPS estimate to $5.72, $6.57 and $7.34 during 2011-13. We reiterate our �Fair Value� rating on WYNN�s Common Stock and WYNN Notes, but are raising our Common Stock price target to $147 from $136. At yesterday�s close of $164.89, WYNN is trading at 15.6x, 14.0x and 11.7x our 2011-13 consolidated adjusted EBITDA estimate; Our price target of $147.00 values the Company at 14.0x, 12.4x and 10.3x, respectively. We note that our price target does not include the potential $30 per share value of the Cotai Strip project @ crt
HOUSING STARTS IN U.S. ROSE 14.6% IN JUNE TO 629,000 PACE
BofA CEO Moynihan: Trading Operations Made Money On 97% of Days
Baidu launches landmark licensed music service; Ends outstanding
litigation - Baidu announced that it has signed a la
Baidu launches landmark licensed music service; Ends outstanding litigation - Ba
idu announced that it has signed a la
Baidu launches landmark licensed music service; Ends outstanding litigation
- Baidu announced that it has signed a landmark agreement for the
distribution of digital music with One-Stop China, or OSC, a joint venture
whose shareholders are three of the leading global record companies:
Universal Music, Warner Music, and Sony Music. OSC shareholders will license
to Baidu their catalogues and upcoming new releases, including Chinese songs
and international tracks, which can be streamed or downloaded from Baidu's
servers.Under the terms of the deal, Baidu will remunerate music content
owners on a per-play and per-download basis for all tracks delivered through
the Baidu MP3 Search service, as well as Baidu's newly launched social music
platform, ting!. The new product offers users the ability to discover and
share music and music-related content. The new partnership with OSC was
accompanied by a conciliation agreement, endorsed by the Beijing High
People's Court, that ended outstanding litigation between the three record
companies and Baidu.
Goldman Sachs (GS) brought trading risk down 26% from a
year earlier in 2Q, with the value at risk across its various trading desks
set at $101M on any given day in the period. That's the lowest VaR since 3Q
of 2006 and down 10% from 1Q. GS cited an uncertain market environment for
its rationale in taking money off the table. Meanwhile, net revenue at
institutional client services fell 29% on year and 47% sequentially, driven
lower by weak results in fixed income, currency and commodities trading. GS
down 3.3% premarket to $125.05 as overall results missed analysts'
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No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.