• GMAC needs third lifeline. GMAC Financial Services and the Treasury are reportedly in advanced talks to prop up the auto-lender with its third helping of taxpayer money, making it the first of the stress-tested banks to need additional government capital. Treasury will likely inject another $2.8-5.6B into GMAC in exchange for preferred shares, bringing its total investment in GMAC thus far to $15.3-18.1B, for which it currently owns 35.4% of the firm. Sources say the FDIC has also agreed to backstop another $2.9B of GMAC's debt to facilitate day-to-day lending. The government's willingness to deepen taxpayer exposure to GMAC reflects the troubled lender's importance to the revival of the auto industry.
• Consumer confidence dips. A lower-than-expected consumer confidence reading sent a chill through markets Tuesday. Conference Board's index came in at 47.7, down from 53.4 a month ago, and lower than consensus estimates of 53.2. A plunge in expectations (65.7 vs. 73.3 in Sept.) led the way down. "Consumers' assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment," the group said, noting its Present Situation Index is now at a 26-year low. Analysts struggled to find an obvious explanation for the decline, but noted the drop didn't bode well for recovery hopes.
• Risk appetite withers. State Street's investor confidence index fell 10 points to 108.4, the lowest since April, with the most pronounced decline seen among North American investors (-12.8 to 101.1). European investors were also much more subdued (-9.3 to 101.8), but confidence rose among Asian investors, albeit to a level that still trails the U.S. and Europe (+2.4 to 95.3). "Institutional investors have paused to take stock," index co-developer Ken Froot said. "While the U.S. earnings season has been relatively robust so far, the number of positive surprises that have been observed in employment, retail sales, manufacturing and trade figures has diminished considerably, and this may be influencing investor risk appetite."
• Easing Hilton's towering debt load. Sources say Blackstone (BX) is in talks with lenders to shave about $5B off Hilton Worldwide's $20B debt load. Specifically, Blackstone is considering coughing up another $800M in equity to buy back debt at a discount (on top of its $5.6B original investment), and would like to extend debt maturing in 2013 to 2016. With capital markets reopening over the past six months, private-equity firms are using a variety of schemes (exchange offers, repurchases, tender offers) to refinance and extend the maturities on highly-leveraged debt taken on during the heyday, staving off default.
• Panel backs hedge-fund clampdown. The House Financial Services Committee overwhelmingly passed a bill that would require advisers to hedge funds, private equity and offshore funds to register with regulators, bringing some transparency to the loosely-policed industry. The bill, however, exempts venture capital funds and funds with less than $150M - which SEC chief Mary Schapiro warned "could come back to haunt investors in later years."
• Tackling too-big-to-fail. Rep. Barney Frank unveiled legislation to monitor and dissolve systemically critical financial institutions. Under the proposal, costs for taking over and euthanizing a failed bank would be paid for by shareholders and bondholders, with taxpayers temporarily covering the overflow until an assessment is rendered against the failed bank's surviving peers. A council of regulators - including the FDIC, Treasury, Fed and SEC - would be in charge of monitoring the conglomerates and invoking a wind-down if necessary.
• That's a good czar. While so-called pay czar Kenneth Feinberg's new rules for TARP backed firms cut compensation by about half, they also boosted base salaries by 14% to an average of $438K/year after executives complained, according to an analysis in today's WSJ. The move appears to contradict Feinberg's stated goal of tying pay to long-term performance, and "deepens the confusion and skepticism" surrounding the types of pay systems the government is promoting.
• Ford shows why it's #1. Consumer Reports' much-awaited yearly car reliability survey held few surprises, with foreign automakers dominating its top-10 list, and domestic brands prominently featured on its least-reliable tally. Scion took top spot, followed by Honda (HMC), Toyota (TM) and Infiniti (NSANY). Ford (F), at #10, was the only U.S. carmaker to make the grade. Least reliable brands were Chrysler, Cadillac, Dodge and Jeep. Media reports yesterday claimed Fiat models will drive Chrysler's turnaround efforts, but with new cars not due until 2012, it's unclear whether Chrysler has enough staying power in its balance sheet.
• Ruiz pegged as AMD insider. Sources say former AMD (AMD) CEO Hector Ruiz is the insider government officials have identified as providing nonpublic information to Galleon's insider trading scheme. Prosecutors released fragments of recorded conversations between an unnamed AMD executive and a Galleon employee in which they allegedly discuss the timing of the spinoff of AMD’s plants before the deal was announced in Sept. 2008. Ruiz hasn’t been charged, and prosecutors don’t say he profited from insider trading.
• Gloom on economy spreads. Americans are growing increasingly pessimistic about the economy after a mild upswing in September, according to WSJ/NBC's monthly poll released Wednesday. For the first time during the Obama presidency, a majority of those polled now see the country as being on the wrong track. Fifty-eight percent think the economic slide still has a ways to go, up from 52% in September, while only 29% think we've hit bottom, down from 35%.
• Mortgage apps drop for second straight week. Mortgage applications fell another 12.3% following a 13.7% drop last week, even as the average rate for 30-year mortgages inched down to 5.04% from 5.07% a week ago. Refinancing was 16.2% lower.
• Ford picks Geely. Ford (F) selected a group led by China's Geely as the preferred bidder for its Volvo unit, a senior Geely executive said. Geely and Ford will now enter into exclusive negotiations over Volvo.

Earnings: Wed. Before Open

• ArcelorMittal (MT): Q3 income of $1.59B vs. consensus of $1.78B. Sees Q4 income of $2-2.4B. "We have seen the first signs of recovery in Q3... We should continue to see further gradual improvement through 2010, although the operating environment remains challenging." Shares -0.8% premarket. (PR)
• Ashland (ASH): FQ4 EPS of $0.96 beats by $0.06. Revenue of $2.11B (-4.6%) in-line. "Demand appears to be showing some signs of growth in many end markets." (PR)
• BorgWarner (BWA): Q3 EPS of $0.15 beats by $0.05. Revenue of $1.03B (-22%) in-line. "We continue to be cautiously optimistic about Q4." (PR)
• ConocoPhillips (COP): Q3 EPS of $1.00 beats by $0.06. Shares -0.1% premarket. (PR)
• Enterprise Products Partners L.P. (EPD): Q3 EPS of $0.36 misses by $0.06. Revenue of $4.6B (-27%) vs. $4.73B. (PR)
• CenterPoint Energy (CNP): Q3 EPS of $0.31 misses by $0.01. Revenue of $1.58B (-37.3%) in-line. (PR)
• Coca-Cola Enterprises (CCE): Q3 EPS of $0.51 beats by $0.05. Revenue of $5.57B (-3%) vs. $5.71B. (PR)
• General Dynamics (GD): Q3 EPS of $1.48 beats by $0.08. Revenue of $7.72B (+8.1%) in-line. (PR)
• Goodyear Tire & Rubber (GT): Q3 EPS of $0.45 beats by $0.05. Revenue of $4.38B (-15.2%) in-line. Shares +1.8% premarket. (PR)
• Hess (HES): Q3 EPS of $1.05 vs. consensus of $0.55. Revenue of $7.27B vs. $7.75B. Shares +1.8% premarket. (PR)
• Jones Apparel Group (JNY): Q3 EPS of $0.46 beats by $0.19. Revenue of $856M (-11.3%) vs. $867M. "We are cautiously optimistic that the holiday season will generate better financial results across the industry." Shares -13.8% premarket. (PR)
• International Paper (IP): Q3 EPS of $0.37 beats by $0.13. Revenue of $5.92B (-13.1%) in-line. "At the end of Q3, we began to see some modest improvements in demand in some segments of our paper and packaging businesses." Shares +3.8% premarket. (PR)
• Lazard (LAZ): Q3 EPS of $0.41 beats by $0.04. Revenue of $431M (-1.3%) vs. $400M. Believes corporate defaults will remain at high levels, on a more global scale than during the last cycle, and therefore expects that its restructuring business will continue to be very active. (PR)
• Level 3 Communications (LVLT): Q3 EPS of -$0.10 in-line. Revenue of $916M (-14.4%) vs. $926M. Shares -4.4% premarket. (PR)
• MeadWestvaco (MWV): Q3 EPS of $0.50 beats by $0.23. Revenue of $1.63B (-10.2%) in-line. "Given continued global economic uncertainty, future results are difficult to predict." (PR)
• Newell Rubbermaid (NWL): Q3 EPS of $0.38 beats by $0.03. Revenue of $1.45B (-17.7%) in-line. (PR)
• New York Community Bancorp (NYB): Q3 EPS of $0.26 in-line. "Although certain economic data suggests that the recession has ended, the Metro New York region we serve continues to be under duress." (PR)
• Nexen (NXY): Q3 EPS of C$0.23 beats by C$0.08. Revenue of C$1.1B (-50.4%) vs. $924M. Shares -0.1% premarket. (PR)
• Nomura (NMR): Q2 net income of ¥27.7B ($303M) vs. consensus of ¥11.5B. Revenue of ¥355B vs. ¥258B last year. Resumes ¥4/share dividend. (Bloomberg)
• Owens Corning (OC): Q3 EPS of $0.61 beats by $0.22. Revenue of $1.35B (-17.2%) in-line. On track to surpass $160M in cost savings this year. Shares +1.5% premarket. (PR)
• Praxair (PX): Q3 EPS of $1.02 beats by $0.02. Revenue of $2.29B (-19.8%) in-line. "Business conditions stabilized globally during the quarter... The strongest pick-up was in Asia and South America, where government stimulus programs have increased domestic demand and industrial production." (PR)
• Qwest Communications International (Q): Q3 EPS of $0.09 beats by $0.02. Revenue of $3.05B (-9.6%) in-line. Shares +3.5% premarket. (PR)
• SAP AG (SAP): Q3 net income of €435M vs. consensus of €454M. Sales of €2.51B vs. €2.63B. "While we are seeing signs of stabilization in the general environment, the market remains difficult. Q3 software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan." Shares -7.6% premarket. (PR)
• Southern Company (SO): Q3 EPS of $0.99 beats by $0.01. Revenue of $4.68B (-13.8%) vs. $5.5B. (PR)
• SPX Corp. (SPW): Q3 EPS of $ beats by $. Revenue of $1.17B (-20.8%) in line. Sees full-year EPS of $3.80-4.00 vs. $3.96 consensus. "The global economic environment remains difficult and continues to impact our performance. Although some macroeconomic trends appear to be pointing toward a recovery, we expect our recovery to lag the broader economy." (PR)
• United Microelectronics (UMC): Q3 EPS of $0.08 beats by $0.04. Revenue of $853M (+11.1%) vs. $809M. (PR)
• WellPoint (WLP): Q3 EPS of $1.78 beats by $0.40. Revenue of $15.21B (+784%) in-line. Medical enrollment fell 1.5M to 35.3M, primarily due to the recession and a rise in unemployment. Shares -14.3% premarket. (PR)
• Wyndham (WYN): Q3 EPS of $0.58 beats by $0.02. Revenue of $1.02B (-17.1%) in-line. Shares +1% premarket. (PR)

Earnings: Tue. After Close

• Ace (ACE): Q3 EPS of $2.07 beats by $0.10. Revenue of $3.39B (-6%) vs. $3.33B. Expects meaningfully stronger revenue growth in Q4. Shares +2.3% AH. (PR)
• Amkor Technology (AMKR): Q3 EPS of $0.12 misses by $0.07. Revenue of $616M (-14%) vs. $604M. Sees Q4 EPS of $0.17-0.23 vs. $0.16. Shares -1.5% AH. (PR)
• Apollo Group (APOL): FQ4 EPS of $1.06 beats by $0.02. Revenue of $1.08B (+30%) vs. $1.03B. Announces an informal SEC inquiry into revenue recognition practices. Shares -19.8% AH. (PR)
• Boston Properties (BXP): Q3 FFO of $1.13 beats by $0.03. Revenue of $359M (+6%) vs. $353M. Sees Q4 FFO of $1.04-1.06 vs. $1.09. (PR)
• Century Aluminum Company (CENX): Q3 EPS of $0.45. Revenue of $229M (-59%) vs. $225M. Results impacted by $55.6M net after-tax benefit related to contract replacement. Shares +3.8% AH. (PR)
• Cephalon (CEPH): Q3 EPS of $1.62 beats by $0.21. Revenue of $549M (+10%) vs. $559M. Sees full-year sales of $2.125B-2.175B vs. $2.22B. Shares +1.4% AH. (PR)
• Chicago Bridge & Iron (CBI): Q3 EPS of $0.42 beats by $0.03. Revenue of $1B (-38%) vs. $1.1B. Shares +5.4% AH. (PR)
• Dreamworks Animation (DWA): Q3 EPS of $0.23 beats by $0.07. Revenue of $135M (-10.6%) vs. $129M. Shares +0.4% AH. (PR)
• E*TRADE Financial (ETFC): Q3 EPS of -$0.05 beats by $0.01. At-risk delinquencies declined by 10% and provision for loan losses decreased by $57M to $347M. Shares +0.6% AH. (PR)
• Fiserv (FISV): Q3 EPS of $0.92 in-line. Revenue of $992M (-5%) vs. $1.05B. Shares -2.6% AH. (PR)
• Harris (HRS): FQ1 EPS of $0.83 beats by $0.06. Revenue of $1.2B (-3%) in-line. Shares +5.4% AH. (PR)
• Illumina (ILMN): Q3 EPS of $0.17 misses by $0.03. Revenue of $158M (+5%) vs. $167M. Shares -14.8% AH. (PR)
• Integrated Device Technology (IDTI): FQ2 EPS of $0.07 beats by $0.05. Revenue of $140M (-30%) vs. $131M. Shares +4.2% AH. (PR)
• Massey Energy Company (MEE): Q3 EPS of $0.19 beats by $0.01. Revenue of $642M (-16%) vs. $677M. Shares -7.4% AH. (PR)
• McKesson (MCK): FQ2 EPS of $1.11 beats by $0.09. Revenue of $27.1B (+1.9%) vs. $26.75B. Sees full-year EPS of $4.45-4.60 vs. consensus of $4.29. Shares +1.9% AH. (PR)
• Molex (MOLX): FQ1 EPS of $0.18 beats by $0.03. Revenue of $674M (-20%) vs. $661M. Sees Q2 EPS of $0.11-0.15 vs. $0.19, including pretax restructuring charge of about $0.07 after tax. Shares -1% AH. (PR)
• Nalco Company (NLC): Q3 EPS of $0.20 misses by $0.05. Revenue of $957M (-14%) vs. $961M. (PR)
• Norfolk Southern (NSC): Q3 EPS of $0.81 beats by $0.03. Revenue of $2.1B (-29%) in-line. Shares +1.8% AH. (PR)
• Panera Bread Company (PNRA): Q3 EPS of $0.61 beats by $0.03. Revenue of $335M (+6%) vs. $334M. Same-store sales increased 3.3%. Sees Q4 EPS of $0.85-0.87 vs. $0.85, and full-year EPS of $3.05-3.15 vs. $3.04. Shares +5.2% AH. (PR)
• Pharmaceutical Product Development (PPDI): Q3 EPS of $0.32 in-line. Revenue of $341M (-13%) vs. $334M. Sees full-year EPS of $1.38-1.40 vs. $1.34, on revenue of $1.29B-1.32B vs. $1.34B. Shares +0.2% AH. (PR)
• RF Micro Devices (RFMD): FQ2 EPS of $0.13 beats by $0.04. Revenue of $255M (-6%) vs. $234M. Shares +7.1% AH. (PR)
• ValueClick (VCLK): Q3 EPS of $0.15 beats by $0.01. Revenue of $130M (-12.1%) vs. $129M. Sees Q4 EPS of $0.15-0.16 vs. consensus of $0.17 on revenue of $128-138M vs. $142M. Shares +1.8% AH. (PR)
• Visa (V): FQ4 EPS of $0.74 beats by $0.02. Revenue of $1.9B (+10%) vs. $1.8B. Sees 2010 revenue growth at lower end of 11-15% range. Sees 2011 growth of more than 20%. Shares +1.9% AH. (PR)

Today's Markets

Overseas markets moved lower Wednesday and futures are under pressure.

Q3 2009 Earnings Call

October 27, 2009 05:00 PM ET

For traders with a more short-term time horizon, we have compiled a list of the S&P 1500 stocks that have the largest intraday high-low ranges (based on the average percent spread between the intraday high and low over the last fifty days). We then grouped the stocks based on whether they have a rising or falling 50-day moving average. Stocks highlighted in gray are new to the list this month.

This month's most volatile stock is AIG, which has an average intraday range of 14.6%. A couple of years ago the stock was considered a conservative and safe investment. Today, it has become a daytrader's dream. As the market becomes more stable, we are also beginning to see an increase in the number of stocks with share prices in the double digits. While AIG's double digit share price is somewhat artificial given the 1:20 reverse split, seven other stocks with prices above $10 are also on the list.

For traders with a more short-term time horizon, we have compiled a list of the S&P 1500 stocks that have the largest intraday high-low ranges (based on the average percent spread between the intraday high and low over the last fifty days). We then grouped the stocks based on whether they have a rising or falling 50-day moving average. Stocks highlighted in gray are new to the list this month.

Once again this month, Financials and Consumer Discretionary are the most represented sectors, although the two are no longer as dominant on the list as they have been in the past. Not surprisingly, as the overall market has become more stable, the percentage swings of the most volatile stocks has decreased. Also noteworthy is the fact that stocks with double digit prices are once again showing up. In this month's list, six stocks with prices above $10 per share (NP, CENX, LAWS, SAH, ROCK, and AIG) made the cut.

In this post I have identified an updated list of 26 stocks which have broken out on big (very unusual) volume. As always, I believe the stocks listed in this post are worthy of adding to the stock watch list.

As stated at the bottom of this post, I have chosen two stocks from the list which I may be speculating with in the weeks to come. Last week I had a stock LaserCard (LCRD) which I speculated with Monday the day after posting it, and the day they reported earnings (after the bell). It is a week later, and up over 50%. Here is the outcome to that trade.

• CIT to get much smaller. CIT Group (CIT) reportedly turned down offers from Berkshire Hathaway (BRK.A) and Leucadia National Corp. (LUK) last spring to buy parts of the lender because the offer prices were too low. CIT is now being forced to evaluate a similarly structured breakup as it faces potential bankruptcy, with its aviation-finance and rail-finance operations units the most likely to be sold. CIT will likely keep its vendor-financing department, but could shed its vendor-financing business.
• White House wants to fold OTS. The White House submitted a proposal to Congress to fold the Office of Thrift Supervision into the larger Office of the Comptroller of the Currency, which oversees commercial banks, and to empower the SEC to administer the resolution of large financial firms that operate brokerages. The plan, which is part of a broader effort to create a process for unwinding systemically important institutions that are failing, would try to end the practice of escaping regulation by acquiring a thrift and organizing as a unitary thrift holding company. (Read the Treasury's fact sheet)
• Stock indices head up and away. Better-than-expected quarterly earnings reports have helped stock indices surge forward. The Dow Jones Industrial Average closed at 9,069.29, its first time above 9,000 since January, for a 38.5% gain in less than five months. The S&P 500 has erased half its losses since September, and the Nasdaq is on its longest streak of gains since 1992. Skeptics warn the sharp gains are just a set-up for a sharp pullback.
• Fed seeks consumer protection overhaul. The Federal Reserve submitted its own proposal to Congress yesterday, detailing sweeping new consumer protections for mortgages. Among the proposals were a ban on side payments to mortgage brokers for pushing clients to higher-cost loans and plans to overhaul the content and timing of disclosures to consumers. (Read the Fed's press release)
• SEC sues over fake takeover reports. SEC officials filed a civil lawsuit against Hazem Khalid Al-Braikan, a respected Kuwaiti financier, alleging he made millions in suspicious profits after 'fraudulent' takeover reports sent shares of U.S. companies Harman International (HAR) and Textron (TXT) soaring. The SEC said the case represents 'pretty brazen misconduct,' with Al-Braikan aggressively buying Harman stock and call options in the four days before the fake tender offer, followed by a liquidation of the entire position.
• Qualcomm fined for abusing market power. South Korea’s fair trade regulator is fining Qualcomm (QCOM) a record $208M, accusing the U.S. chipmaker of abusing its market dominance. Qualcomm promised to fight the ruling, which it called 'overly excessive and unwarranted.' South Korean regulators have been investigating Qualcomm since 2006.
• Beijing Auto's Opel bid fails. Xu Heyi, chairman of Beijing Automotive, said the company's bid for General Motors' Opel unit failed because of a disagreement over the intellectual property rights to care designs and technology. Analysts speculate that Beijing Automotive's growing success may have been a factor as well, as "GM has no interest in strengthening a rival in China."
• Tough times for Microsoft. Microsoft (MSFT) reported quarterly earnings after the market closed (see details below), with a $0.02/share miss that dampened hopes of a tech recovery. The company posted its first ever annual decline in sales of its Windows operating system, and saw weak sales across all of its units, but struck a bullish tone, noting "there is some sense we have hit bottom."
• Amazon fails to amaze. Amazon (AMZN) met expectations when it reported quarterly earnings yesterday (see details below), but took a profit hit on a legal settlement and weak sales in high-margin products like videogames. Sales of media, including books and music, were flat in North America. On a more positive note, Amazon's third-party marketplace continued to grow, contributing 30% of unit sales.
• U.K. economy shrinks. The U.K. economy shrank far more than expected in Q2, contracting 0.8% from the previous quarter and 5.6% annually, the largest decline since quarterly records began in 1955. This was the fifth consecutive quarter of GDP contraction in the U.K.
• Jobless claims rise. Initial jobless claims came in at 554K, up 30K from a week ago (revised) and better than the 560K consensus. Continuing claims fell 88K to 6.225M.
• Fewer mass layoffs. Mass layoffs (of at least 50 people) fell 6% in June to 2,763, resulting in 279K job losses, down from record highs in May. Over the year, mass layoffs increased by 1,046 and associated initial claims increased by 104K.
• Home sales increase. Existing home sales rose 3.6% in June to 4.89M/year, vs. consensus of 4.77M. Sales are 0.2% lower than a year ago. NAR chief economist Lawrence Yun said he expects the gradual uptrend to continue, but noted again that new appraisal standards are resulting in lost sales.

Earnings: Friday Before Open

• Arch Coal (ACI): Q2 EPS of -$0.11 misses by $0.05. Revenue of $555M (-29.4%) vs. $634M. Full-year guidance in line. Believes the trough of the current coal market cycle has been reached, and anticipates better industry supply and demand balance in H2. Shares -2.8% premarket. (PR)
• Ashland (ASH): FQ3 EPS of $1.01 beats by $0.09. Revenue of $2.04B (-7.5%) in-line. (PR)
• Black & Decker (BDK): Q2 EPS of $0.63 beats by $0.26. Revenue of $1.19B (-27.4%) in-line. Sees Q3 EPS of $0.35-0.45 vs. $0.52 consensus and full-year EPS of $1.65-2.00 vs. $1.60. (PR)
• Dover (DOV): Q2 EPS of $0.54 beats by $0.08. Revenue of $1.4B (-30%) in-line. "Though quarterly order rates stabilized across most of our businesses, we still do not anticipate a meaningful second half recovery." (PR)
• Ericsson (ERIC): Q2 EPS of 0.26 kroner misses by 0.58 kroner. Revenue of 52.1B kroner vs. consensus of 50.58B. Gross margin 36.3% vs. 37% a year ago. Notes continued growth in mobile subscriptions, although the growth rate has slowed. Shares -6.6% in Stockholm. (PR)
• Exelon (EXC): Q2 EPS of $1.03 beats by $0.06. Revenue of $4.17B (-11.1%) vs. $4.93B. Sees Q3 EPS of $0.90-1.00 vs. $1.05 consensus. Shares -0.5%. (PR)
• Fortune Brands (FO): Q2 EPS of $0.70 beats by $0.06. Revenue of $1.74B (-16.9%) in-line. Sees full-year EPS in line with consensus. (PR)
• Ingersoll-Rand (IR): Q2 EPS of $0.50 beats by $0.11. Revenue of $3.47B (+12.8%) in-line. Sees Q3 EPS of $0.55-0.70 vs. consensus of $0.52 and full-year EPS of $1.39-1.69 vs. $1.32. "Based on our recent order pattern and a review of customer and channel activity, we expect to continue to see reduced activity levels year over year for most of our major end markets for the second half of 2009." (PR)
• Pinnacle Entertainment (PNK): Q2 EPS of $0.08 beats by $0.05. Revenue of $266M (flat). (PR)
• Schlumberger (SLB): Q2 EPS of $0.68 beats by $0.05. Revenue of $5.53B (-18.1%) in-line. Says "the overall sequential rate of revenue decline slowed as a further precipitous drop in North America was offset by slowing rates of decline and some recovery in other parts of the world." (PR)
• Sepracor (SEPR): Q2 EPS of $0.72 beats by $0.33. Revenue of $326M (+10.9%) vs. $280M. Sees full-year EPS of $2.55-2.90 vs. $2.54. (PR)
• T. Rowe Price Group (TROW): Q2 EPS of $0.38 beats by $0.04. Revenue of $442M (-24.6%) vs. $424M. "The second half of 2009 will likely continue to be challenging for both consumers and companies around the world; nevertheless, investors should be encouraged about the prospects for a gradual return to longer-term financial stability and global growth." (PR)
• Wabtec (WAB): Q2 EPS of $0.64 beats by $0.02. Revenue of $334M (-14.4%) vs. $380M. (PR)

Earnings: Thursday After Close

• Amazon.com (AMZN): Q2 EPS of $0.32 in-line. Revenue of $4.65B (+14%) vs. $4.69B. Sees Q3 revenue of $4.75B-5.25B vs. $4.92B. Sees operating income of $120M-210M. (PR)
• American Express (AXP): Q2 EPS ex-items of $0.27 beats by $0.01. Revenue of $6.1B (-18%) vs. $6.3B. Q2 provisions for losses $1.6B vs. year-ago $1.8B. Tier one risk-based capital ratio 9.6% at Q2 end. (PR)
• Ameriprise Financial (AMP): Q2 EPS of $0.58 in-line. Revenue of $1.9B (-5%) vs. $1.8B. (PR)
• Baidu.com (BIDU): Q2 adjusted EPS of $1.71 beats by $0.27. Revenue of $161M (+37%) vs. $158M. (PR)
• Broadcom (BRCM): Q2 EPS of $0.03 misses by $0.21. Revenue of $1B (-13%) in-line. (PR)
• Burlington Northern Santa Fe (BNI): Q2 EPS of $1.18 beats by $0.17. Revenue of $3.3B (-26%) vs. $3.4B. (PR)
• Bucyrus International (BUCY): Q2 EPS of $1.08 beats by $0.25. Revenue of $724M (+17%) vs. $625M. (PR)
• CA Inc. (CA): Q1 EPS of $0.42 beats by $0.04. Revenue of $1.05B (-3%) vs. $1.03B. Sees FY10 EPS of $1.60-1.70 vs. $1.57. Sees FY10 revenue growth high end of 2-4%. (PR)
• Cabot Oil & Gas (COG): Q2 EPS of $0.38 beats by $0.04. Revenue of $205M (-18%) vs. $206M. (PR)
• Capital One (COF): Q2 EPS of -$0.65 beats by $0.08. Revenue of $4.1B (+1%) vs. $3.9B. (PR)
• Century Aluminum Company (CENX): Q2 EPS of -$0.32 beats by $0.50. Revenue of $189M (-65%) vs. $188M. (PR)
• Cheesecake Factory (CAKE): Q2 EPS of $0.32 beats by $0.06. Revenue of $408M (flat) vs. $403M. Q2 same-store sales down 3.2%. (PR)
• Chubb (CB): Q3 EPS of $1.49 beats by $0.18. Net written premiums of $2.8B (-7%) vs. $3B. Sees FY09 EPS of $5.20-5.50 vs. $5.15. (PR)
• Compuware (CPWR): Q1 EPS of $0.22 beats by $0.09. Revenue of $214M (-28%) vs. $218M. (PR)
• Con-Way (CNW): Q2 EPS of $0.64 beats by $0.51. Revenue of $1.1B (-21%) in-line. (PR)
• Developers Diversified Realty (DDR): Q2 FFO of $0.51 beats by $0.01. Revenue of $204M (-8%) vs. $202M. (PR)
• Eastman Chemical Company (EMN): Q2 adjusted EPS of $0.86 beats by $0.15. Revenue of $1.3B (-32%) vs. $1.4B. Sees Q3 EPS of $1.10 vs. $0.82. Sees FY09 EPS high end of $2.00-$3.00 vs. $2.48. (PR)
• Federated Investors (FII): Q2 EPS of $0.52 beats by $0.02. Revenue of $307M (-1%) vs. $314M. Total managed assets $402B. (PR)
• Immucor (BLUD): Q4 EPS of $0.29 beats by $0.20. Revenue of $79M (+15%) vs. $75M. Sees FY10 EPS of $1.10-1.17 vs. $1.11. Sees FY10 revenue of $332M vs. $297M. (PR)
• Informatica (INFA): Q2 EPS of $0.13 misses by $0.06. Revenue of $117M (+3%) vs. $118M. (PR)
• IPC Holdings (IPCR): Q2 EPS of $1.72 beats by $0.36. Revenue of $195M (+240%) vs. $120M. (PR)
• Juniper Networks (JNPR): Q2 EPS of $0.19 beats by $0.01. Revenue of $786M (-11%) vs. $767M. (PR)
• KLA-Tencor (KLAC): Q4 EPS of -$0.15 in-line. Revenue of $282M (-52%) vs. $298M. (PR)
• Leggett & Platt (LEG): Q2 EPS of $0.16 beats by $0.02. Revenue of $757M (-29%) vs. $781M. Sees FY09 adjusted EPS of $0.55-0.70 vs. $0.64. Sees FY09 revenue of $3B vs. $3.1B. (PR)
• MEMC Electronic Materials (WFR): Q2 EPS of $0.03 beats by $0.03. Revenue of $283M (-47%) vs. $231M. (PR)
• Microsoft (MSFT): Q4 EPS of $0.34 misses by $0.02. Revenue of $13.1B (-17%) vs. $14.4B. (PR)
• Netflix (NFLX): Q2 EPS of $0.58 beats by $0.08. Revenue of $409M (+21%) vs. $410M. Sees Q3 EPS of $0.39-0.47 vs. $0.45. Sees Q3 revenue $416M-422M vs. $418M. Raises FY09 EPS guidance to $1.65-1.82 (from $1.56-1.72) vs. $1.72. Raises FY09 revenue view to $1.65B-1.67B (from $1.63B-1.67B) vs. $1.66B. (PR)
• PMC - Sierra (PMCS): Q2 EPS of $0.13 beats by $0.03. Revenue of $123M (-12%) vs. $120M. (PR)
• Rambus (RMBS): Q2 EPS of -$0.23 misses by $0.02. Revenue of $27M (-24%) in-line. (PR)
• RF Micro Devices (RFMD): Q1 EPS of $0.07 beats by $0.07. Revenue of $213M (-12%) vs. $187M. (PR)
• Riverbed Technology (RVBD): Q2 EPS of $0.14 in-line. Revenue of $91M (+12%) vs. $94M. (PR)
• Starent Networks (STAR): Q2 EPS of $0.20 beats by $0.03. Revenue of $78M (+28%) vs. $76M. (PR)
• SunPower (SPWRA): Q2 EPS of $0.24 beats by $0.10. Revenue of $298M (-22%) vs. $263M. Sees FY09 EPS of $1.15-$1.60 vs. $0.96. Sees FY09 revenue $1.35B-1.7B vs. $1.32B. Sees FY09 CapEx $250M-300M. (PR)
• Synovus Financial (SNV): Q2 EPS of -$1.82 misses by $1.28. Pretax income of $145M. (PR)
• Taubman Centers (TCO): Q2 FFO of $0.65 beats by $0.04. Revenue of $159M (flat) vs. $148M. (PR)
• Washington Real Estate Investment Trust (WRE): Q2 FFO of $0.53 beats by $0.03. Revenue of $77M (+12%) vs. $78M. (PR)

Today's Markets

Overseas markets posted modest to strong gains Friday. Futures are moderately higher in overnight trading.

Q2 2009 Earnings Call

July 23, 2009 05:00 PM ET

By Skymist

We have seen the recent economic collapse drive stocks down, way down. Especially in the materials and energy sector. If we believe we are in a recovery, then we can expect stocks to move up substantially, and the greatest potential for gain is in the stocks given up for dead previously, but now back in favor. Let's take a look at the materials and energy stocks which are at least 90% down from their 2008 or 2009 high price, and see if we can find any "sleepers".

The S&P 1500 is up 31.31% from its March 9th closing low, but interestingly, the average stock in the index is up 57.69%, so the unweighted averages are doing better than the weighted ones. Since the March 9th market low, 201 companies in the S&P 1500 (13.4%) are up more than 100%.

Below we highlight the 25 best performing S&P 1500 companies since March 9th. Of the top 25, fourteen come from the Consumer Discretionary sector, including the top five. Two "Tuesdays" rank first and second! Ruby Tuesday (RT) is up a whopping 689% since March 9th, while Tuesday Morning (TUES) is up 528%. DIN, SAH, and RUTH round out the top five.

Q1 2009 Earnings Call Transcript

April 21, 2009 5:00 pm ET

By popular demand, here is the latest list of Phoenix candidates:

Brandywine Realty Trust (BDN), CapitalSource Inc (CSE), CBL & Associates Properties Inc (CBL), Century Aluminum Co (CENX), Citizens Republic Bancorp Inc (CRBC), Colonial Properties Trust (CLP), Complete Production Services Inc (CPX), Conseco Inc (CNO), Delta Petroleum Corp (DPTR), Developers Diversified Realty Corp (DDR), Domtar Corp (UFS), First Industrial Realty Trust Inc (FR), First Marblehead Corp/The (FMD), Furniture Brands International Inc (FBN), Gannett Co Inc (GCI), Genworth Financial Inc (GNW), Hercules Offshore Inc (HERO), Hovnanian Enterprises Inc (HOV), Huntsman Corp (HUN), ION Geophysical Corp (IO), iStar Financial Inc (SFI), Liz Claiborne Inc (LIZ), Manitowoc Co Inc/The (MTW), MCG Capital Corp (MCGC), MGIC Investment Corp (MTG), MGM Mirage (MGM), Pacific Sunwear Of California (PSUN), Patriot Coal Corp (PCX), Pennsylvania Real Estate Investment Trus (PEI), Petroquest Energy Inc (PQ), Popular Inc (BPOP), Quiksilver Inc (ZQK), Rex Energy Corp (REXX), Saks Inc (SKS), Sterling Financial Corp/WA (STSA), Sunstone Hotel Investors Inc (SHO), THQ Inc (THQI), Webster Financial Corp (WBS) and Zale Corp (ZLC).

With the US equity market averages either probing or breaking down through their November lows, is it time to buy Phoenix stocks? Others have picked up on that theme, with the latest being a Minyanville article on buying beaten up stocks.

With that in mind, I screened the US market for stocks with the following characteristics:

• Chrysler rethinks GM merger. Chrysler has renewed the idea that a merger with General Motors (GM) is the 'best option' for survival. GM is unlikely to agree to such a merger without being forced into it by the government, analysts say, suggesting that Chrysler has re-aired the merger idea with the hope that the auto panel meeting for the first time today might force a 'shotgun marriage.' In its Feb. 17 filing for fresh aid, Chrysler said a GM merger "would create a company better positioned to compete with Toyota and other non-U.S. automakers."
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Century Aluminum Co. (CENX)

Q4 2008 Earnings Call

Sentiment

Stocks opened modestly lower in cautious trading Tuesday morning and the selling pressure intensified around 11:00 ET when Treasury Secretary Tim Geithner unveiled the details of the Treasury Department's much-anticipated bank bailout package. While Geithner didn't color outside the lines, the Treasury Secretary also failed to provide a concrete framework for solving the deep-rooted problems in the banking industry. One of the key components some market watchers were expecting -- a "bad bank" designed to help financial institutions rid themselves of toxic debt -- was noticeably absent.

SAC Capital, the $14 billion hedge fund firm run by Steven Cohen has been quite busy with SEC filings as of late. We recently covered SAC's portfolio holdings here. Since then, SAC has amended various 13G filings with the SEC, adjusting many of the positions in its portfolio. All of the following 13G filings were made due to SAC's trading activity on December 31, 2008 or January 1, 2009. In no particular order, here they are:

1. United Therapeutics (UTHR): SAC now shows that it has less than a 0.01% stake in UTHR. Back on September 30, 2008, it had owned 209,562 shares of UTHR. Therefore, effectively, it has sold off almost its entire stake.
2. OM Group (OMG): SAC now has a 0% stake in OMG and holds zero shares.
3. Savient Pharmaceuticals (SVNT): SAC has completely sold out of its SVNT position and now owns zero shares according to its 13G. It previously owned 50,675 shares.
4. True Religion Apparel (TRLG): SAC completely sold out of its TRLG position and as of its latest 13G, shows that it holds zero shares. It previously held 278,695 shares.
5. Zale Corporation (ZLC): SAC now holds zero shares of ZLC. It previously held 76,049 shares.
6. Tween Brands (TWB): SAC sold out of its entire position in TWB.
7. WCI Communities (WCI): It no longer holds any shares of WCIMQ.
8. Pilgrim's Pride (PPC): SAC sold all of its PGPDQ shares.
9. Cabot Corporation (CBT): It no longer owns any CBT.
10. Albemarle (ALB): SAC now holds a 0.3% stake in ALB (300,000 shares). It previously owned 200,000 shares.
11. Inspire Pharmaceuticals (ISPH): It no longer owns any ISPH.
12. Incyte (INCY): SAC has now disclosed that it has a 0.4% stake in INCY, thereby drastically reducing its holdings. It previously held in excess of two million shares.
13. Indevus Pharmaceuticals (IDEV): It completely sold out of its IDEV position.
14. Keryx Biopharmaceuticals (KERX): SAC no longer holds KERX.
15. Emergency Medical Services (EMS): SAC has disclosed that now, it only owns a 1.2% stake in EMS, drastically reducing its position from last disclosure.
16. Charlotte Russe (CHIC): It completely sold out of its position.
17. Cymer (CYMI): It completely sold out of CYMI.
18. Biomarin Pharmaceutical (BMRN): SAC sold out of its entire position.
19. Chiquita Brands (CQB): It no longer owns CQB.
20. Applied Energetics (AERG): It completely sold out of AERG.
21. Century Aluminum (CENX) - It completely sold out of its position.
22. American Apparel (APP): SAC no longer owns any APP.
23. Acorda Therapeutics (ACOR): It completely sold out of this name.
24. P.F. Chang's China Bistro (PFCB): It disclosed that it now owns a 1.3% stake in the company.
25. Vaxgen (VXGN): It is now showing a 1.6% stake in VXGN.
26. Fresh Del Monte Produce (FDP): It is now showing a less than 0.1% ownership stake.
27. Navistar International (NAV): It disclosed that it now has a 2.1% stake in NAV.
28. Vanda Pharmaceuticals (VNDA): It sold completely out of its position.
29. Sanderson Farms (SAFM): It also sold completely out of this name.
30. Assured Guaranty (AGO): It now has a 0.2% ownership stake in AGO.
31. Akorn (AKRX): It now shows a 0.3% ownership stake.
32. Auxilium Pharmaceuticals (AUXL): It now shows a 0.3% ownership stake in this name, as well.
33. Stewart Enterprises (STEI): SAC now has a 4% ownership stake in STEI.
34. Ocean Power Technologies (OPTT): Due to activity on January 1, 2009, SAC now shows a 4.9% ownership stake in the company
35. Hasbro (HAS): Activity with its shares on December 31, 2008 has lead SAC to disclose a 3.6% ownership stake in HAS.
36. Cougar Biotechnology (CGRB): SAC has disclosed that it now has a less than 0.1% ownership stake in the company.
37. Orexigen Therapeutics (OREX): SAC now shows a 4.9% ownership stake in OREX.

As you can see, from a collective 37 separate 13G filings, for the most part, SAC was reducing many of its position sizes. We just want to remind everyone again, that SAC has a tendency to move in and out of positions very quickly, so keep that in mind. We're merely relaying the information that was filed with the SEC and we will update any other positions it might change in the future. SAC decreased equity exposure by almost half from quarter to quarter (based on 13F filings with the SEC) and it was reported SAC was going to cash back in October. Also interesting is that many of the largest positions in its portfolio consist of debt of various companies.

This is the Third Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here.

The other funds we've already covered include:

This is the Third Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here. We've already covered:

• Timothy Barakett's Atticus Capital
• Whitney Tilson's T2 Partners
• Peter Thiel's Clarium Capital
• Bill Ackman's Pershing Square
• Bret Barakett's Tremblant Capital
• John Paulson's Paulson & Co.
• David Einhorn's Greenlight Capital
• Dan Loeb's Third Point
• Paul Tudor Jones' Tudor Investment Corp.
• Louis Bacon's Moore Capital Management
• Bruce Kovner's Caxton Associates
  

Next up is Soros Fund Management ran by George Soros. Soros is famous for his stellar returns with partner Jim Rogers when they ran their Quantum fund. Soros' fund is a switch from some of the more value oriented funds we've been covering, like the 'Tiger Cub' funds including Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, John Griffin's Blue Ridge Capital, and Andreas Halvorsen's Viking Global. Soros is more of a global macro player, seeking investments in whatever market it can gain an edge, whether it be equities, bonds, currencies, debt, commodities, and more. So, keep in mind that these equity positions only represent a portion of the fund's overall holdings. It is not required to disclose holdings outside of equities, notes, and stock options.