Joystiq has your stash of criminally complete GTA IV news!

AOL Money & Finance

Analyst initiations: SPWR, ESLR and ABT

MOST NOTEWORTHY: SunPower, Evergreen Solar and Abbott Lab were today's noteworthy initiations:
  • Citigroup believes SunPower (NASDAQ: SPWR) is faced with high cell production costs, its silicon cost and installation cost advantages are increasingly commoditized and finds the risk/reward even at current levels. Shares were initiated with a Hold rating and $105 target.
  • Citigroup believes Evergreen Solar (NASDAQ: ESLR) faces significant financing requirements over the next few years, making it difficult to see a sustained period of EPS growth beyond the $1 range. The firm sees downside to $5/share. Shares were assumed with a Sell rating and $8 target.
  • UBS started Abbott Lab (NYSE: ABT) with a Buy rating and $61 target. The firm is positive on Humira potential growth and expects Xience to drive vascular operating margins to positive.
OTHER INITIATIONS:

Early analyst calls: ABT, DRS, RAIL, SOV

It's a fairly quiet day in analyst land as far as the most active stocks are concerned, despite there being many movers today. Here is a brief snapshot of some of the key calls today:

Abbott Labs (NYSE: ABT) started as Buy at UBS.

DRS Tech
(NYSE: DRS) cut to Neutral at UBS; cut to market perform at FBR.

FreightCar America (NASDAQ: RAIL) Raised to Buy from Hold at Jefferies; new price target $42.00 from $35.00.

Sovereign Bancorp (NYSE: SOV) Raised To Market Perform at KBW.

You can also see the full top ten individual calls right here.

Jon Ogg produces and edits the "10 Stocks Under $10" weekly newsletter for 247WallSt.com.

Oil's $100-plus price amid U.S. slump suggests price surge is hardly over

Among the many variables business executives, policy makers, and economists are watching as the United States attempts to jump-start its slow growth / no growth economy, is the ability of oil's price to moderate in the quarters ahead.

Further, oil's failure, to date, to fall below $110 per barrel despite three straight months of declining U.S. gasoline consumption and sluggish economic growth has caused oil watchers to re-examine their premises regarding projected oil prices for 2008-2012.

The oil market, circa May 2008

Over the past decade, the world has encountered both a tripling of oil prices and the start of the $100 per barrel oil era, driven largely by increasing demand for oil in emerging markets, particularly in the giga-GDP growth nations of China and India. Further, one 'dampening assumption' during oil's recent climb to record heights has been that the price of oil would fall as the U.S. economy approached a recession, and as global growth slowed.

Continue reading Oil's $100-plus price amid U.S. slump suggests price surge is hardly over

Abbott Labs (ABT) rises on FDA's Merck action

ABT logoAbbott Laboratories (NYSE: ABT) shares are trading higher after the Food and Drug Administration denied regulatory approval for Merck & Co.'s (NYSE: MRK) cholesterol drug Cordaptive. The Merck drug would have directly competed with ABT's own cholesterol drug. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT.

After hitting a one-year low of $49.58 in July, the stock hit a one-year high of $61.09 in January. ABT opened this morning at $53.32. So far today the stock has hit a low of $52.97 and a high of $53.73. As of 12:10, ABT is trading at $53.24, up $1.63 (3.2%). The chart for ABT looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 13.6% return in just seven weeks as long as ABT is above $50 at June expiration. Abbott would have to fall by more than 6% before we would start to lose money. Learn more about this type of trade here.

Continue reading Abbott Labs (ABT) rises on FDA's Merck action

Euro rises to record $1.60 on ECB inflation outlook

The euro climbed to a record-high $1.6020 versus the dollar Tuesday, after the European Central Bank signaled that they'll increase interest rates -- despite slowing growth -- if inflation accelerates, Bloomberg News reported.

The euro rose about 1.5 cents to $1.6020 versus the dollar before paring some gains to trade around $1.5985 in Tuesday afternoon trading. The Euro also rose about four-tenths of a pence against the British pound to 80.20 pence.

Dollar falls, again

Meanwhile, the dollar retreated across the board, falling about 1.5 cents to $1.9950 versus the British pound and about one-half yen to 102.95 versus Japan's yen. Independent currency trader Andrew Resnick told BloggingStocks Tuesday that traders responded to the ECB's announcement by doing what you'd expect: they bought the euro.

"The only thing holding back the euro was the possibility the ECB would cut rates. The fundamentals have been in the euro's favor for several years. The market had priced-in a possible rate cut by the ECB, but when ECB comments came in today the market quickly bid up the euro," Resnick said. He added that he is presently long with the euro against the dollar.

Continue reading Euro rises to record $1.60 on ECB inflation outlook

Earnings highlights: Google, Intel, Coca-Cola, Pfizer, eBay, AMD and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Google, Intel, Coca-Cola, Pfizer, eBay, AMD and others

Abbott Laboratories (ABT) posts 35% growth in quarterly profit

Shares of drug company Abbott Laboratories Inc. (NYSE: ABT) were trading higher this morning after the company reported that its first-quarter profit jumped 35%, helped by strong international demand for its rheumatoid arthritis medication Humira. However, the stock is down 1% just before noon.

For the quarter, Abbott Laboratories reported that its profit climbed to $938 million, or 60 cents per share, boosted by higher sales of its prescription drugs and medical devices that benefited from favorable foreign exchange rates. Excluding special items, the company's earnings came in at 63 cents a share, beating analysts' estimations for quarterly earnings of 62 cents a share.

The pharmaceutical company also announced a 14% growth in revenues, to $6.77 billion, up from $5.95 billion a year earlier. Revenue during the period was helped by a 54% increase in its drug Humira sales which surged to $878 million in the first quarter. Analysts, on average, were expecting the company show $6.53 billion in revenue, according to Thomson Financial.

Continue reading Abbott Laboratories (ABT) posts 35% growth in quarterly profit

Abbott Labs (ABT) rises on positive drug trials

ABT logoAbbott Laboratories (NYSE: ABT) shares are trading higher today as the company announced favorable results concerning a clinical trial of its experimental heart stent Xience. ABT reported that patients receiving the stent were less likely to die, have a heart attack, or need additional surgery after two years than with Taxus, a device made by competitor Boston Scientific Corp (NYSE: BSX). There was also positive news from a drug trial concerning the company's TriLipix. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT.

After hitting a one-year low of $49.58 in July, the stock hit a one-year high of $61.09 in January. ABT opened this morning at $53.81. So far today the stock has hit a low of $53.62 and a high of $55.40. As of 1:00, ABT is trading at $55.07, up $2.00 (3.8%). The chart for ABT looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $47.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just 7 weeks as long as ABT is above $47.50 at May expiration. Abbott would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.

ABT hasn't been below $49 at all in the past year and has shown support around $51 recently. This trade could be risky if the company's earnings (due out in mid to late May) disappoint, but even if that happens, this position could be protected by the support the stock might find around $50, where it has bottomed out quite a few times in the past two year.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in ABT or BSX.

Analyst upgrades: GE, X, ABT, FNM, FRE and MITI

MOST NOTEWORTHY: Abbott Lab, Fannie Mae, Freddie Mac and Micromet were today's noteworthy upgrades:
  • Wachovia upgraded Abbott Lab (NYSE: ABT) to Outperform from Market Perform as they believe their earlier concerns have been addressed. Past concerns included the potential for a negative outcome from the FDA panel on Xience and slowing prescription growth of lead drug Humira.
  • Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) were raised to Outperform from Market Perform at Keefe Bruyette citing recent government actions to stabilize the mortgage markets.
  • Micromet (NASDAQ: MITI) was upgraded at RBC Capital to Outperform from Sector Perform as they expect positive data for its lead candidate, MT103, by year-end.
OTHER UPGRADES:

Early analyst calls (NWA) (MO) (FNM)

UBS downgraded United Airlines (NASDAQ: UAUA) and Northwest (NYSE: NWA) from "buy" to "neutral," according to Briefing.com. The news service also writes that Keefe, Bruyette upgraded Fannie Mae (NYSE: FNM) to "outperform" from "market perform."

Altria (NYSE: MO) was started as a "buy" at UBS, according to 24/7 WallSt. The website also reports that Abbott Laboratories (NYSE:ABT) was raised to "outperform" by Wachovia.

Douglas A. McIntyre

Fed to offer $60 billion via term auction facility in March; reiterates TAF policy support

The U.S. Federal Reserve will conduct two auctions of 28-day credit through its Term Auction Facility in March, the Fed announced Friday, in a statement.

The Fed said it will offer $30 billion in an auction on March 10, 2008 and $30 billion in an auction two weeks later, on March 24, 2008.

The Fed also reiterated its support for the term auction facility policy. The Fed said: "The Federal Reserve intends to conduct biweekly TAF auctions for as long as necessary to address elevated pressures in short-term funding markets. Decisions regarding auctions in April will be announced by Friday, March 28."

Continue reading Fed to offer $60 billion via term auction facility in March; reiterates TAF policy support

Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

Abbott Labs swings to profit; WellPoint meets estimates

Abbott Laboratories (NYSE: ABT) announced that it swung to a profit in the fourth quarter from year-earlier results that were reduced by charges for acquisition costs. Abbott's drugs Humira, Depakote, TriCor, and Kaletra all posted double-digit sales gains.

For the quarter ending December 31, Abbott earned $1.2 billion, or 77 cents per share, compared with a loss of $476.2 million, or 31 cents per share, in the same period a year ago. Revenue rose to $7.22 billion from $6.22 billion, exceeding the $6.97 billion estimated by analysts polled by Thomson Financial.

Adjusted earnings, excluding certain items, rose to 93 cents per share, a penny better than analysts' consensus estimate. For the full year, Abbott earned $3.6 billion, or $2.31 a share, compared with $1.72 billion, or $1.12 a share, in 2006. Revenue increased 15% to $25.9 billion from $22.5 billion.

Shares were down about 2% to 56.20 by midday on Wednesday.

For more news on Abbott Labs, see BloggingStocks' Abbott coverage.

Continue reading Abbott Labs swings to profit; WellPoint meets estimates

Motorola (MOT) fourth-quarter profit plunges 84%

As Brian White discussed in his earnings preview, analysts had been expecting to see another disastrous quarter for Motorola Inc. (NYSE: MOT) and this morning's earnings figures confirmed those expectations. The cell phone maker reported that its fourth-quarter profit plunged 84%, hurt by weak wireless phones sales and a deep loss in its handset division.

Net profit sank to $100 million, or 4 cents per share, down from $623 million, or 25 cents, a year earlier. Net profit from continuing operations was 5 cents. Included in the company's numbers were charges of 9 cents related to asset write-downs, layoffs and a legal settlement.

Excluding one-time items, Motorola would have earned 14 cents, a penny above analysts' expectations.

Motorola also posted a decline in its quarterly sales which slipped to $9.65 billion from $11.79 billion a year earlier. Analysts forecast a revenue of $9.6 billion for the quarter, according to Thomson Financial.

Continue reading Motorola (MOT) fourth-quarter profit plunges 84%

The 52-week high club

The Coca-Cola Company (NYSE: KO) should not have a problem selling Coke, even in a recession. It traded up to $65.31 from 52-week low of $45.56.

The Southern Company (NYSE: SO) is an electrical utility with safe yield of 4.1%. It moved up to $40.52 from 52-week low of $33.16.

Abbott Laboratories (NYSE: ABT). Healthcare seems like safe haven. ABT traded up to $60.29 from 52-week low at $49.58.

Genzyme Corporation (NASDAQ: GENZ). Analysts say sales should be strong for several years. Stock was up to $79.70 from 52-week low of $58.71.

Douglas A. McIntyre is an editor at 247wallst.com.

Next Page »

Symbol Lookup
IndexesChangePrice
DJIA-5.8612,986.80
NASDAQ-4.882,528.85
S&P 500+1.781,425.35

Last updated: May 17, 2008: 11:16 AM

BloggingStocks Exclusives

Hot Stocks

BloggingStocks Featured Video

TheFlyOnTheWall.com Headlines

AOL Business News

Latest from BloggingBuyouts

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

Weblogs, Inc. Network