Aug 1, 2008

Friday, August 1, 2008

Pre Market Trading Gap News

Gapping Down

In reaction to disappointing earnings/guidance: TOMO -43.2% (also downgraded to Neutral at Robert W. Baird and downgraded to Neutral from Buy Piper Jaffray), PAET -23.6% (light volume), NANO -17.6% (light volume), HNSN -12.8% (also downgraded to Neutral at Merriman), BOOM -10.7%, IMMR -9.6%, NT -7.1%, OSK -6.9%, VCLK -6.3%, NXG -5.4%, GFI -5.4%, STO -5.1%, NYX -4.9%, MIL -3.3%, CHK -3.3%, CLUB -3.1% (also downgraded to Hold from Buy at BB&T), ATVI -2.0%…

Select metals/mining stocks showing weakness: RTP -3.7% (China should reject BHP bid for Rio, Steelmakers say - Bloomberg.com), HMY -3.7%, GOLD -3.3%, ACH -2.8%, BBL -2.8%, BHP -2.7% (China should reject BHP bid for Rio, Steelmakers say - Bloomberg.com), AU -2.5%, AUY -2.2%, MT -1.1%…

Other news: ELN -47.4% (notified BIIB that relevant regulatory agencies of two confirmed cases of progressive multifocal leukoencephalopathy), MRNA -28.0% (announces phase 2 trial of PYY(3-36) does not meet weight loss endpoint), BIIB -22.6% (disclose 2 cases of PML in patients taking Tysabri; 2 multiple sclerosis patients develop complications), SGP -8.1% (announces they FDA has issued a “not-approvable” letter for sugammadex sodium injection), GM -7.0% (CEO Rick Wagner, on CNBC, says hopefully this is the worst its gets for GM), EPR -1.9% (announces it has agreed to sell 1.9 mln of its common shares)…

Analyst comments: MNST -5.8% (downgraded to Neutral from Overweight at J.P Morgan), ENTG -5.2% (downgraded to Neutral at Merrill), RNR -1.4% (downgraded to Equal Weight at Morgan Stanley).

Gapping Up

In reaction to strong earnings/guidance: THOR +22.6% (also upgraded to Buy from Hold at Natixis Bleichroeder), BYD +21.2%, SWIM +19.6%, SCOR +12.4%, PAR +11.1%, TSYS +10.9% (light volume), CNXT +10.9%, GXDX +10.6%, VPRT +9.4%, VSEC +8.1% (light volume), SMG +7.8%, CHRD +5.6% (light volume), PEET +5.2%, GPRO +5.0%, JAVA +3.5%, USMO +3.4%, IR +2.8%, MPWR +2.4%…

M&A news: ANR +6.8% (MT considers counter-bid for Alpha - Financial Times)…

Other news: IDCC +18.5% (announces that the co prevailed against Samsung in ICC arbitration; confirms second Circuit reverses injunction preventing co from proceeding against Nokia), INCY +5.3% (announces pricing of public offering of 10,500,000 shares of common stock at $9.00), ASTI +4.8% (still checking), MTZ +3.6% (Cramer makes positive comments on MadMoney), RBS +3.3% (still checking), VOD +2.0% (still checking), OC +1.9% (Cramer makes positive comments on MadMoney), PFE +1.8% (still checking), TRN +1.8% (Cramer makes positive comments on MadMoney)…

Analyst comments: MOT +2.8% (upgraded to Neutral at Piper), RFMD +2.8% (upgraded to Buy at UBS), AKAM +1.5% (upgraded to Neutral at Goldman - DJ).

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Pre Market Trader Talk with Bob Pisani - CNBC.com

We have had triple digit moves every day of the week: down 240 Monday, up 266 Tuesday, up 186 Wednesday, down 205 yesterday? What's it all mean? Nothing--Dow is unchanged for the week!

Futures moved up a couple points as the nonfarm payroll came in with losses slightly less than expected.

GENERAL MTRS CORP

11.07 UNCH 0

NYSE

Quote | Chart | News | Profile

[GM 11.07 --- UNCH (0) ] lost $15.5 billion, $27.33 a share (ADJUSTED LOSS WAS $11.21 A SHARE, analyst estimate was a loss of $2.62--think analyst estimates have any meaning when it comes to autos and financials? I don't). Significant losses in GM North America, the strike at American Axle, and continued losses at GMAC Financial were just a few of the problems. They say they have access to $26 billion in liquidity, and insist that they have enough liquidity to last through 2009.

This is not a trivial loss: the total earnings for the S&P 500 in the second quarter is now down 19.4 percent; a hit of this magnitude will bring that number down significantly.

Bad as it sounds, it is not a record: the biggest single quarterly loss of all time was AOL Time Warner's loss of $44.9 billion, in the fourth quarter of 2002. In fact, it's not even the worst for GM: it was worse in the third quarter of 2007, when they lost $39 billion ($68.85 a share).

Elsewhere:
1) What an ugly week for Irish drug maker Elan

ELAN CORP PLC

ELN

20.05 UNCH 0

NYSE

Quote | Chart | News | Profile

[ELN 20.05 --- UNCH (0) ]. It's down 40 percent as they revealed two new brain disease cases in patients taking their Tysabri multiple sclerosis drug. Its U.S. partner Biogen Idec[BIIB 69.76 --- UNCH (0) ] also down as well. Earlier in the week Elan got hit hard on disappointing data on an experimental Alzheimer's drug.

2) Specialty equipment maker Oshkosh

OSHKOSH CORPORATION

OSK

18.04 UNCH 0

NYSE

Quote | Chart | News | Profile

[OSK 18.04 --- UNCH (0) ] down 6 percent, beat on the topline, but guidance for current quarter is well below estimates, citing weak residential and non-residential construction in North America AND "certain areas of Western Europe." This is the second time they have cut their guidance.

3) Boyd

BOYD GAMING INC

BYD

9.98 UNCH 0

NYSE

Quote | Chart | News | Profile

[BYD 9.98 --- UNCH (0)

]eliminated their dividend, and delayed the Echelon Place project in Las Vegas due to "capital markets and the challenging economic conditions." Sound bad? Stock is up 25 percent because the Street is happy the project was delayed because it reduces the near-term funding demands on the company. They also authorized a $100 million share repurchase.

4) Chevron

CHEVRON CORP

CVX

84.56 UNCH 0

NYSE