Monday, March 27, 2006

Monday Morning Musings

Morning News of Note:

  • ISRG: Intuitive Surgical-ISRG reiterate Buy, momentum increasing in GYN surgery@DBAB The firm said that after attending the Society of Gynecologic Oncologists conference this weekend, they came away with increased confidence that GYN may be a "blockbuster end market for da Vinci."
  • F GM DCX: Hurricane Watch Ford hopes high-performance V-8 blows away rivals The Hurricane is back. A year after Ford Motor Co. killed its planned Hemi-fighting V-8 to the dismay of horsepower junkies, Ford Americas group chief Mark Fields has put the high-performance engine back in the company's product pipeline, according to sources familiar with the project. (Full Story) Detroit News
  • FSL MOT: Freescale Could Feel the Heat As Motorola Seeks Second Chip Supplier IT IS INCREASINGLY LIKELY that Motorola (ticker: MOT) will use a second chip supplier for its next-generation (3G) phones and handheld devices, which could spell trouble for Freescale Semiconductor (FSL). Motorola spun off Freescale to shareholders in 2004. Chips for wireless devices contribute about half of Freescale's revenue, and Motorola accounts for about 70% of that business. (Full Story) BARRONS
  • TOT: As Prices Surge, Oil Giants Turn Sludge Into Gold In February, engineers from French oil giant Total SA fired up colossal drum boilers to generate steam that will be pumped to a depth of 300 feet under the frozen ground here. If all goes well, by May, the steam will marinate a tar-like mix of oil and sand until the crude begins to flow. (Full Story) WSJ
  • Mad Money Summary: Jim Cramer opened his show up on Friday discussing DexCom (DXCM), which makes a glucose-monitoring system for diabetics, which he believes is the "next big medical device." Cramer then discussed Fuel-Tech (FTEK), which he says will benefit from a federal court ruling that will tighten pollution control guidelines. Then Cramer suggested buying Santarus (SNTS), the maker of Zegerid, a drug which has shown to work better than market leading drugs Nexium and Prevacid. In the Lightning Round, Cramer was bullish on American Eagle Outfitters (AEOS), Urban Outfitters (URBN), Evergreen Solar (ESLR), Thornburg Mortgage (TMA), Countrywide Financial (CFC), Accredited Home Lenders (LEND), DRS Technologies (DRS), L-3 Communications (LLL), CBIZ (CBIZ), Southwestern Energy (SWN), Houston Exploration (THX), Palm (PALM), NetEase (NTES), Yahoo! (YHOO), Rite Aid (RAD), CVS (CVS), Brightpoint (CELL), Cisco (CSCO), Alcatel (ALA), Lucent (LU), Tellabs (TLAB) Costco (COST) and Apple (AAPL), and was bearish on Abercrombie & Fitch (ANF), Computer Sciences (CSC), Geron (GERN), Isis Pharmaceuticals (ISIS), Exco Resources (XCO), Thomas & Betts (TNB) and Tom Online (TOMO).

Market Comments: The market opened mixed this morning. Techs are mostly higher, while medicals stocks are down on the heels of an analyst downgrade. Energy stocks are also down in early trading.

Oil is trading down today at around $63.50, while gold is trying to break out near new highs. Bond yields are slightly higher at 4.69% (10-yr yield).

This is a big week for the market. The FOMC meets today and tomorrow. This will be new Fed Chairman Bernanke's first meeting, though it is a foregone conclusion that they will raise rates. It is also quarter-end, which could bring additional volatility to the markets. And last, Google (GOOG) has been added to the S&P 500 Index, so there will be an underlying bid to that stock while simultaneously pressure on the remaining 499 stocks in the index subject to reweighting.

long GOOG


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