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Jeremy Frommer, CEO of Hedge Fund LIVE Jeremy Frommer has 20 years of industry experience and is currently responsible for general management and leadership of the General Partner. Previously, Mr. Frommer was a Managing Director and Head of the Global Prime Services Group (“GPS”) at RBC Capital... More
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  • Japan’s Devastation sends the US Markets into Panic – Morning Preview 3-15-11  0 comments
    Mar 15, 2011 10:34 AM | about stocks: MDSO, NFLX, PZG, RIG, BBRY, SDRL, SHAW, SLWQ, SPWR, VECO, SUNEQ, AAPL, AG, ALV, AVL, CCJ, CLH, DNN, EXK, FSLR, HPQ

    HedgeFundLIVE -- The S&P 500 futures are down 2.5% in the premarket.  Some big cap names moving lower are C, GE, BAC, CSCO, F, INTC, and AA.


    FSLR +6.5%: Renewables, waste management rise on Japan.

    CLH +4.2%; SPWRA +3.8%; SOLR +2.6%; WFR +1.3%

    MDSO +3%; 4Q earnings beat

    NFLX +1.1; raised to buy at Goldman


    ALV -6.3%. Japan OEM exposure: JP Morgan 

    CCJ -14%. Nuclear sentiment; DNN -21%, USU-11%, SHAW – 8%, AVL-9.7%

    RIG -5.8%. Oil drops below $98-bbl; SDRL -5.1%

    SLW-6.6%. Gold, silver drop. EXK-14%, AG-12%, PZG-11%

    TMT Analyst Commentary

    LED Industry checks are positive for Cree, Rubicon, Oppenheimer analyst Yair Reiner said.

    Checks show LED BLU demand re-emerging, LED general lighting has strong momentum in Europe/N. America and parts of Asia, are positives for CREE, Reiner said

    Sapphire prices holding up well, potential for price hike in seasonally strong 3Q are positives for RBCN, Reiner said

    CREE short interest 19% of float, RBCN short interst 38%: Data Explorers

    RBCN up 19% YTD, CREE down 27%

    Veeco Instruments is undervalued by as much as 20%-25% and cash on pace to be $20-share of net cash by year end, JPMorgan analyst Chris Blansett said.

    VECO valuation by cash is better than traditional earnings- based, Blansett said

    JPMorgan rates VECO overweight, PT $75; 12 buys, 6 holds, 1 sell, avg. PT $56.50: Bloomberg Data

    Short interest 31% of float, down from Sept. 16 high of 46%: Data Explorers

    VECO up 11% YTD; trading above 50-, 10-DMAs, below 20-DMA


    Citi Sees Chip Supplies Tightening; Watch TXN, FSL, MXIM, XLNX 

    Citi says Japan quake will hurt semiconductor supply more than demand, with country accounting for est. 30% supply, 11% consumption.

    Texas Instruments said after close it expects “some” loss of 1Q rev., more in 2Q, after substantial damage to plant in Miho, Japan (plant accounted for ~10% TXN 2010 rev.); Citi sees other cos. making similar announcements

    Separately, Freescale Semi’s Sendai plant has ceased ops

    MXIM, XLNX may also see production disruptions, Macquarie said in note yesterday

    Gleacher says in long-term some chipmakers such as TXN may benefit as disruptions spur higher prices, more orders

    In Europe, disruptions at competitors could boost ASML, Infineon, STMicroelectronics: Citi

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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