Friday, March 17, 2006

The Witches Are Here

Morning News of Note:
  • GOOG: Google Wins Copyright Battle; Archiving Issue Is Still Unclear A federal judge dismissed a lawsuit accusing Google Inc. of wrongful conduct, including copyright infringement and defamation, providing the latest court opinion to weigh in on the contentious area of search engines and copyright. Some legal experts said the ruling, issued last week in a case brought by Internet publisher Gordon Roy Parker in U.S. District Court in Philadelphia, could influence judges in other cases pending against Google, potentially bolstering the Internet company's legal defenses. (Full Story) WSJ
  • AAPL: Apple Phone May Steal Motorola's Appeal THE SUCCESS OF THE IPOD PLAYER and the iTunes music store has set the stage for Apple Computer to introduce its own branded song-playing cellphone later this year. And while the new competition may prove troubling for all the major cellphone makers, it will likely have the biggest impact on Motorola, the leading cellphone maker in the U.S., Apple's strongest market. (Full Story) BARRONS
  • SIRF: SiRF Technology-SIRF acquires Truespan for cash, stock. TrueSpan is developing a silicon and software platform that brings high quality digital audio and video experience to consumers in mobile environments
  • Mad Money Summary: Jim Cramer was bullish on shares of Brocade Communications (BRCD) on his show last night and believes that now is the time to buy. Cramer said that shares trade at a "nasty discount" to its peer group due to the company's tainted history. Cramer believes that Brocade could beat its quarterly earnings due to the positive move in the network storage market. Cramer said "if you pay up to $6, I think you're fine." Cramer also changed his "antibottling stance" last night on his show and recommended shares of Fomento Economico Mexicano (FMX). He said that Fomento is the number two coke bottler and it is only getting bigger as well as being the second largest brewer in Mexico. Cramer said that while shares jumped, as Bear Stearns (BSC) beat him to the punch, he still believes shares are a buy. Cramer said that it is hard to find a stock that is involved in multiple Bull markets, but Textron (TXT) is one. He said that Textron's helicopters, private jets & tanks are all in a Bull market as the Army is replacing its helicopters with Textron's, the company's Cessna unit is the biggest maker of small/medium sized jets and the company's tank business should benefit from the industrialization of Brazil, Russia, India & China. Cramer also believes it is time to buy shares of Powerwave Technologies (PWAV) and CEO Ronald Buscher said that there is a lot of room for growth. In the Lightning Round, Cramer was bullish on Chesapeake Energy (CHK), Apple (AAPL), LifeCell (LIFC), Energy Transfer Partners (ETP), Palm (PALM), Avista (AVA), Blackboard (BBBB), Pain Therapeutics (PTIE), Kulicke & Soffa Industries (KLIC), Citrix Systems (CTXS), Allied Waste (AW), Ameritrade Holdings (AMTD), Charles Schwab (SCHW), E*Trade Financial (ET), Peabody Energy (BTU), Arena Pharmaceuticals (ARNA), Smurfit-Stone (SSCC) and Costco (COST)), and was bearish on BioMarin Pharmaceutical (BMRN), Gap (GPS) and True Religion Apparel (TRLG).

Market Comments: The market is fairly flat in early trading, but volume is spiking to record levels. This is due to "quadruple witching", which is the simultaneous expiration of four different futures and options contracts. That means that today will likely be more volatile than otherwise, and that it will not be a good day to draw conclusions about the future direction of the market.

Most sectors are higher this morning, with the exception of semis and most of the energy complex. OPEC revised its outlook for oil demand slightly lower today, as higher prices have curbed demand a bit. This should help the inflation outlook at the margin.

March Madness? Bring it on.

long GOOG


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