Tuesday, February 28, 2006

Month-End Weakness

Morning News of Note:
  • INTC: Intel to Build Vietnam Chip Assembly Plant Intel Corp., the world's largest chipmaker, announced plans Tuesday to build a $300 million chip assembly and testing factory in southern Vietnam, giving a huge boost to the country's efforts to raise its high tech profile. The facility, which will be built in Ho Chi Minh City's Saigon Hi-Tech Park, marks the single largest U.S. investment so far in its former wartime adversary. (Full Story) Washington Post
  • NOK: Nokia market share back at 35 percent The world's biggest mobile phone maker Nokia is back at 35 percent global market share after a sharp dip in 2004, according to survey said released Tuesday. It took the cell phone behemoth from Finland almost two years to recover the ground it lost in 2004 after it failed to introduce popular folding models, and it can take its 40 percent target seriously again, market research group Gartner said. (Full Story) CNET
  • TWX YHOO: Plan for Fees on Some E-Mail Spurs Protest A group of nonprofit and public interest groups is beginning a campaign today to protest plans by America Online and Yahoo, which each offer e-mail services, to charge high-volume senders of e-mail fees to guarantee preferred delivery of their messages. AOL and Yahoo are working with Goodmail, a Silicon Valley company, which plans to charge between a quarter-cent and a cent for each message (Full Story) NY Times
  • TIVO: TiVo Inc. Chief Executive Thomas Rogers said the company that pioneered digital video recorders will explore giving away its set-top boxes to boost subscribers. TiVo will soon offer pricing that includes an option for the free equipment, spokesman Elliot Sloane said in an interview. The free boxes may be offered with subscriptions to higher-priced and longer-term plans, Rogers said, according to Sloane. Shares of TiVo fell 1 cent to $5.56 in Nasdaq Stock Market trading. They have gained 8.6 percent this year. - NY Post
  • Mad Money Summary: Jim Cramer opened his show talking about Sherwin-Williams (SHW), which he says investors should buy on a discount thanks to a "bogus" lawsuit. He said Sherwin-Williams was a great company and added that they just raised their dividend. Then Cramer discussed Washington Group International (WGII), which he says people have been excited about for the wrong reasons. He said the company's defense segnment was not the biggest reason to own the stock, its power and infrastructure business is the biggest reason. He also said he liked both Washington Group and URS (URS) in coal-to-disel technology. Cramer then commented on The Wall Street Journal's list of the worst performing stocks in the last 10 years. He believes best/worst stock lists are stupid. He feels you should own the worst WSJ 10-year performer, Foster-Wheeler (FWLT). In the Lightning Round, Cramer was bullish on EDO Corp (EDO), Bookham (BKHM), Century Aluminum (CENX), Manitowoc (MTW), Black & Decker (BDK), Memc Electronic (WFR), Peabody Energy (BTU), Blue Nile (NILE) and Google (GOOG), and was bearish on Valero (VLO) Syntroleum (SYNM), LeapFrog (LF), Intrado (TRDO), Alcoa (AA), Johnson & Johnson (JNJ), Snap-on (SNA), Whole Foods (WFMI) and Juniper Networks (JNPR).

Market Comments: The market has opened under pressure this morning, likely on profit taking. Existing home sales and consumer confidence both came in lower than expected. The energy complex is also under more selling pressure. I still believe that these stocks are very oversold, especially given that crude is still above $60.

The market fared well yesterday, with the Hi/Lo indexes expanding, in addition to an accumulatin day for the Nasdaq. I think that both major indexes are headed for new highs in the near-term.

long INTC, TWX


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