Morning News Roundup

Morning News of Note:

• Gapping Up
  Gapping up on strong earnings/guidance: NGA +6.7%, EMAG +5.6%, ASMI +5.5%, CTCM +4.1%, HUM +3.8%, UAUA +1.3%... Other news: FLSH +11% (to be acquired by SNDK; up in sympathy: SIMO +7%), POZN +15% (to submit response to FDA approvable letter for Trexima in Q4), PD +5.5% (Grupo Mexico considering a bid for the co - Globe and Mail; also Pru upgrade), COH +4.8% (mentioned positively in Barron's), RMBS +4.4% (BWS Financial upgrade), CPO +3.3% (corn prices rise as heat wave threatens crops), EP +3.2% (mentioned positively in Barron's), HSOA +2.7%, LBIX +2.7% (extends recent momentum), AAPL +2.2% (BofA upgrade), PWAV +2.1% (reports tonight after the close), CHK +2.1%, WMT +1.8% (July sales guidance), PFE +1.7% (names new CEO), SIRI +1.5% (announces that its service will be offered on Mitsubishi cars), SNY +1.4% (states reject Plavix deal)... Under $3: CYTR +22% (completes Phase 1 HIV trial), VLTS +11%.
• Gapping Down
  Gapping down on disappointing earnings/guidance: SCT -38% (warns of a loss, suspends dividend, CEO resigns, to explore strategic alternatives), AG -9.7%, ABN -3.2%, MTU -3.2%, UAUA -1.9%, ENMC -1.8%, GVHR -1.7%... Other News: ITRI -6.6% (to offer convertible notes), SRZ -5.1% (to restate earnings), AVCI -4.2% (profit taking after recent move higher), CEPH -2.8% (hearing related to state's decision to reject BMY's Plavix settlement agreement), PALM -1.9%, RTP -1.8% (mentioned as a potential bidder of PD - Globe and Mail), AAUK -1.5%, BHP -1.4%, AMZN -1.2%, REP -1.1% (invests in expanding capacity in Portugal).
• BONDX Poole says data shows slowing growth, see 50% chance on Aug Fed hike
  Says inflation is "tilted" upward (Bloomberg)
• AAPL Apple Computer: Upgrade details (65.59 ) -Update-
  BofA upgraded AAPL to Buy from Neutral and raises their tgt to $79 from $68 saying that channel checks show higher end demand for MacBooks than their previous checks. Firm is encouraged that Street expectations have moved lower for iPods, which was part of the reason for their downgrade in Dec 05. Firm sees the same product introduction schedule as they have mentioned previously - a new Nano late in the Sept Q and modestly upgraded Video in Q4, in time for a holiday demand. Further EPS upside potential from iPod of $0.08-0.12. Also, firm is not including the impact of an AAPL phone, which could be $0.03-0.05 in F07.
• WMT Wal-Mart sees July same-store sales up 2.4% - Reuters (44.46 )
  Reuters reports Wal-Mart (WMT) on Saturday estimated that July sales rose 2.4% at its U.S. stores open at least a year, toward the high end of its forecast.
• SNDK SanDisk to acquire M Systems Flash Disk; co to become wholly owned subsidiary of SanDisk (47.14 )
  Co and M Systems Flash Disk Pioneers (FLSH 31.79) enter into definitive agreements for SanDisk to acquire M Systems in an all stock transaction. In the transaction, each M Systems ordinary share will be converted into 0.76368 of a share of SanDisk common stock, representing a 26% premium over the average closing price of M Systems' shares for the last thirty trading days.

long AAPL