Stocks that closed near or at session highs included: CTEC, SWHC, MVSN, SHFL, ETFC, & DLTR. Stocks that closed near or at session lows included: IBM, IART, ABG, ARW, SMG, POM, BARE, DNA, HDB, JEC, OXM, PNRA, & TK. Watch these stocks for potential corrections or continuations of yesterday’s action.
Here’s a brief list of stocks that are currently trading at unusually high or low short-term levels. Stocks that are overbought include: HDY, LFG, BOW, MEA, CF, CUB, TRCR, NGS, PRXI, QRCP, PTT, WRSP, PURE, PRNW, GES, SHRP, AEZ, & IOC. Stocks that are oversold include: FRPT, CALP, AMLN, REGN, & UTSI. Watch these stocks for potential continuations or corrections from their current states.
Filings: Dexcom (DXCM) files for a $60 mln convertible notes (and the 7.69 mln shares of common stock issuable upon conversion of the notes) offering by selling shareholders… Arbor Realty Trust (ABR) files for a 2.7 mln share common stock secondary offering… Pricings: Osiris Therapeutics (OSIR 11.60) prices a private placement offering of 1.75 mln shares of common stock at $11.38/share… Security Capital Assurance (SCA 31.76) prices a 9.68 mln share common stock offering at $31/share… Chart Industries (GTLS 21.25) prices a 12.61 mln share common stock offering at $21.25/share… IPOs: Infinera (INFN), a chip-maker, prices its 13 mln share IPO at $13/share, above the $10-$12 forecast range.
Upgrades: BB&T upgrades Kimball Intl (KBALB 14.10) to Buy from Hold, as they believe the co’s business furniture environment has improved modestly in recent weeks following the launch of two new systems products, with the improvement expected to be positive for both revenue and profitability… Lehman upgrades General Dynamics (GD 78.93) to Overweight from Equal Weight… Bernstein upgrades Infineon (IFX 15.34) to Market Perform from Underperform with a $15.50 tgt… Bernstein upgrades ASML (ASML 25.00) to Outperform from Market Perform… UBS upgrades Medcohealth (MHS 77.09) to Buy from Neutral. Downgrades: J.P Morgan downgrades Volvo (VOLV 20.94) to Underweight from Neutral… Raymond James downgrades Buffalo Wild Wings (BWLD 87.55) to Underperform from Outperform. Miscellaneous: Jefferies initiates Input/Output (IO 15.98) with a Buy and a $19 tgt saying the true growth for I/O could likely be realized beyond the next two years, and they believe that the stars are aligning to make this a compelling longer-term growth story.
Upgrades: Bear Stearns upgrades McCormick (MKC 36.65) to Outperform from Peer Perform… Jefferies upgrades Ecolab (ECL 41.75) to Buy from Hold and raises their tgt to $50 from $49 given multiple initiatives driving improving free cash flow in 2008-2010, a robust R&D effort strengthening Ecolab’s competitive advantage, and valuation a more reasonable 10.3x 2008 EV/EBITDA and 1.8x PEG… Thomas Weisel upgrades Telik (TELK 3.50) to Market Weight from Underweight saying they believe the impact from the clinical failures of the ASSIST 1, 2 & 3 Phase III trials as well as the FDA’s recent move to place a clinical hold on the Telcyta program is for the most part reflected in the stock’s current price. Downgrades: Lehman downgrades Procter Gamble (PG 63.19) to Equal Weight from Overweight… Morgan Stanley downgrades Temple- Inland (TIN 62.29) to Equal Weight from Overweight saying P&G’s business is healthy, but without much upside to fiscal 2008 margins vs their ests nor likelihood of sustained re-acceleration in revenue growth they downgrade the shares… Morgan Stanley downgrades Imclone (IMCL 39.77) to Underweight from Equal Weight saying after underwhelming Crystal and second line colon cancer data, they increasingly question Erbitux’ ability to make a meaningful move into the more lucrative early-stage colon cancer market. Miscellaneous: Credit Suisse initiates KBR Inc. (KBR 27.25) with an Outperform and a $32 tgt saying they believe KBR is uniquely positioned to capitalize on the robust hydrocarbon spend reflecting 20 years of underinvestment and record high energy prices… JMP initiates Pharmasset (VRUS $8.50) with an Outperform and a $14 tgt saying Clevudine could be the first oral drug to show a meaningful cure rate in hepatitis B. The firm also says R7128 could be a key component of the future of hepatitis C therapy…. J.P Morgan initiates Orexigen (OREX 16.75) with an Overweight.
Upgrades: Friedman Billings upgrades Fannie Mae (FNM 64.05) to Outperform from Market Perform and raises their tgt to $85 from $55, based on improving fundamentals, a better business mix, and the strong possibility of reporting current financials in the next 12-18 months. Miscellaneous: Susquehanna initiates Idera Pharma (IDP 8.43) with a Neutral, as they view the current risk/benefit profile as unfavorable based on a comparative analysis to the TLR market leader, Coley Pharma… Susquehanna initiates XOMA (XOMA 3.39) with a Positive, as they see high-margin royalty growth drivers, RAPTIVA and LUCENTIS, expanding as they continue to penetrate their target markets, and a third royalty stream potentially arriving by ‘08/’09 for the co… Susquehanna initiates Dynavax (DVAX 4.78) with a Positive, based on the co’s pipeline, with clinical studies focused on hepatitis B, two oncology indications and programs in asthma, and chronic obstructive pulmonary disease partnered big pharma… Susquehanna initiates Lev Pharma (LEVP.OB 1.58) with a Positive, as the view the BLA filing of LEVP’s lead product, C1-esterase inhibitor (C1-INH), as a significant milestone and the HAE space and are encouraged by recent Phase 3 trial results for C1-INH in the acute treatment of HAE, its long product history in Europe, and positive comments the firm has received from patients who have used the product… CIBC initiaes Optium (OPTM 12.90) with a Sector Performer, as they view Optium’s niche product portfolio market as problematic longer term in order for the co to gain preferred vendor status at key customers.
Upgrades: CIBC upgrades Radware (RDWR 13.74) to Sector Outperformer from Sector Performer and sets a $18 tgt, as they believe U.S. sales restructuring is beginning to bear fruit and U.S. sales are regaining momentum, based on checks, and expect material improvement in the U.S. in Q207… CIBC upgrades DynCorp Intl (DCP 16.85) to Sector Outperformer from Sector Performer and sets a $21 tgt, following reasonable guidance coupled with near-term catalysts in the form of the LOGCAP and Linguist programs… UBS upgrades Quest Diagnostics (DGX 48.65) to Buy from Neutral… J.P Morgan upgrades Hanover Compressor (HC 24.92) to Overweight from Neutral. Downgrades: Wachovia downgrades PDL BioPharma (PDLI 26.86) to Market Perform from Outperform, based on a lack of meaningful catalysts expected for the remainder of the year and 1H08 as well as anticipated slowing growth of DNA product sales… BofA downgrades Central Garden & Pet (CENT 13.04) to Neutral from Buy.
Miscellaneous: Susquehanna initiates Coley Pharma (COLY 8.28) with a Positive, as they are cautiously optimistic in the success of Phase 3 results for ‘676, a TLR9 agonist licensed to Pfizer, given encouraging Phase 2 results, Pfizer’s unwavering commitment to the program and evidence of strong signs of anti-tumor activity from additional Phase 2 studies in six different cancers… Susquehanna initiates Medarex (MEDX 14.70) with a Positive, based on multiple drivers that include a potential buyout by one of MEDX’s existing partners, as well as clinical progress and the success of its technology platform in monoclonal antibody therapeutics… Susquehanna initiates Dyax (DYAX 4.65) with a Neutral, as they view the co’s lead product, DX-88, as a stepping stone for the co to reinvent itself as a mAb-based therapeutics emerging biotech co and remain encouraged by recent trial results for Hereditary Angioedema product DX-88 as it enters its second confirmatory Phase 3 trial, but have concerns that it will be late to market behind well-positioned competitors… Susquehanna initiates Millennium Pharma (MLNM 10.47) with a Neutral, based on new multiple myeloma market entrant Thalomid from Celegene that has stalled Velcade sales.
‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com
Cramer was bearish on Pier 1 Imports (PIR), Partner Communications (PTNR), Cree (CREE), Nortel Networks (NT), Starbucks (SBUX) and Ciber (CBR).
00:26 ‘Mad Money’ Recap: Lightning Round – TheStreet.com
Cramer was bullish on SunTrust Banks (STI), Qualcomm (QCOM), Texas Instruments (TXN), Cisco (CSCO), Teck Cominco (TCK), BHP Billiton (BHP), Companhia Vale do Rio Doce (RIO), Freeport-McMoRan (FCX), Superior Offshore (DEEP) and Golden Star Resources (GSS).
00:25 ‘Mad Money’ Recap: Sudden Death Round – TheStreet.com
During the “Sudden Death” round, Cramer was bullish on Yamana Gold (AUY), Equinix (EQIX) and LandAmerica Financial Group (LFG). He was bearish on Silver Wheaton (SLW)