Morning News Roundup

Morning News of Note:

• Gapping Up
  Gapping Up on strong earnings/guidance: NILE +20% (also Piper upgrade), AQNT +20% (up in sympathy: TFSM +9% which reports tonight), GRMN +12% (up in sympathy: SIRF +6%), VCLK +17% (also Kaufman upgrade), TSRA +12% (co reports, but licensing deal with Infineon driving the stock higher), VPHM +8.6%, HL +7.6%, CI +6.8%, ADBE +6.6%, ASTSF +6%, CTSH +6% (up in sympathy: SIFY +7.3%, INFY +2.4%), ERTS +5.7%, MA +5%, ALVR +5.2% (also Merriman upgrade), MDRX +3.2%, TWX +2.8% (also co shifts AOL strategy with free offerings), AL +2.4%, WYNN +2.3%, PG +1.8%, SWN +1.8%, DVN +1.5%... Other News: POZN +33% (announces collaboration with AZN), F +4.3% (co launches strategic review of brands, may lead to asset sales - WSJ), XMSR +4% (deal with Google), TLAB +3.3% (bounces after recent weakness), AVCI +3.2%, USEY +2.8%, TIE +2.2%, TEVA +2.2% (announces Copaxone sales), PALM +2.8% (Cramer bullish on Mad Money; Merrill resumes coverage with $19 tgt), UNH +2.2%, LAMR +1.8% (Credit Suisse upgrade), BYD +1.6% (prices offering), CHK +1.4% (Cramer positive on Mad Money)... Momentum enrgy names moving ahead of possible Hurricane Chris: BDCO +7.2%, NGAS +4.1%, FUEL +2.5%... Medical device stocks are higher following final Medicare ruling: BSX +4.6%, THOR +4.2%, BVX +3.2%, MDT +2.5%... Under $3: AVAN +9.5% (reports Q2).
• Gapping Down
  Gapping down on disappointing earnings/guidance: CTLM -18%, CKFR -17%, TECD -12.5% (guidance only), JCOM -3.9%, BF -1.6%... Other News: BVF -10.5% (stock halted; chatter of adverse court ruling), SCT -5% (profit taking after 71% move yesterday), UTSI -3.9% (Bear Stearns downgrade), UARM -3.9%, ISSX -3.4% (Raymond James downgrade), ELN -2% (Piper lowers tgt to $10 from $14), AVP -1.7% (Matrix downgrade), GSK -1.5%, AZN -1.2%, GS -1%.
• CTSH Cognizant Tech beats by $0.04; guides above consensus (63.52 )
  Reports Q2 (Jun) earnings of $0.37 per share, $0.04 better than the Reuters Estimates consensus of $0.33; revenues rose 59.1% year/year to $336.8 mln vs the $319 mln consensus. Co issues upside guidance for Q3, sees EPS of at least $0.38 vs. $0.36 consensus; sees Q3 revs of at least $363 mln vs. $343.78 mln consensus. Co issues upside guidance for FY06, sees EPS of at least $1.45 vs. $1.39 consensus; sees FY06 revs of at least $1.37 bln vs. $1.32 bln consensus.
• MCO Moody's beats by $0.03, revs above consensus, provides 2006 guidance (54.11 )
  Reports Q2 (Jun) earnings of $0.59 per share including stock-based compensation, $0.03 better than the Reuters Estimates consensus of $0.56; revenues rose 14.5% year/year to $511.4 mln vs the $485.8 mln consensus. MCO guides year-over-year growth non-GAAP EPS growth in the mid-to-high teens percentage range, vs. $2.08 consensus (consensus implies EPS up about 13% from previous year). Co guides 2006 revs in the low double-digit percent range vs. $1.899 bln consensus (consensus implies revs up about 10% from previous year).
• PG Procter & Gamble beats by $0.01, beats on revs, guides above consensus (55.93 )
  Reports Q4 (Jun) earnings of $0.55 per share, $0.01 better than the Reuters Estimates consensus of $0.54; revenues rose 25.1% year/year to $17.84 bln vs the $17.5 bln consensus. Co issues upside guidance for Q1, sees EPS of $0.79-0.81, excluding $0.03 in one time charges, vs. $0.78 consensus. Co issues upside guidance for FY07, sees EPS of $3.02-3.08, excludes $0.06-0.08 in one-time charges vs. $3.00 consensus.
• GRMN Garmin beats by $0.14, guides Y06 above consensus, sees softer results in OEM programs (90.00 )
  Reports Q2 (Jun) earnings of $1.10 per share, $0.14 better than the Reuters Estimates consensus of $0.96; revenues rose 63.5% year/year to $432.5 mln vs the $378 mln consensus. Co reports gross margins of 50% vs ~49-50% street expectation. Co issues upside guidance for FY06, sees EPS of exceeed $3.90 vs. $3.67 consensus; sees FY06 revs of Exceed $1.6 bln vs. $1.5 bln consensus.
• TWX Time Warner announces AOL will offer its software, e-mail and other products for free to broadband users (16.25 )
  Co announces that AOL's software and e-mail as well as various other products will be made available for free to broadband users in a move to enhance the growth of its online advertising business. Among the AOL products that will be available for free to anyone with an Internet connection are: AOL's integrated software; communications features, including AOL e-mail, instant messaging, a local phone number with unlimited incoming calls, and social networking applications; and safety and security features, such as parental controls.
• Cramer's 'Mad Money' Recap - TheStreet.com
  On Tuesday's edition, Jim recommends Pfizer (PFE) and reasons that Medicare drug schemes are causing people to buy more prescriptions. For companies that have the best risk/reward regarding businesses for the elderly, Pfizer is the best. He said market players have a six-month window to buy Pfizer, adding that shares have a good risk/reward situation with ten up and two down. Next, he suggests Comcast (CMCSA) and sees growth ahead and notes all its divisions are profitable. Finally, he believes Under Armour's (UARM) valuation is too high and says he wouldn't hold it on its way down. Besides valuation, he thinks the growth story has come to an end and added they have no technological or patent advantage over Nike (NKE) or Reebok. With the Celgene (CELG) chief executive as a guest, Cramer called Celgene his favorite biotech stock other than Amgen (AMGN) and feels that shares could still climb.

long PG