Watchlists – UPCOMING
It's been fairly slow today after Friday's massive impulsive rally. We certainly were looking for confirmation of Thursday's trend breaks but all we got was a major bounce across the boards. Whichever catalyst you point to, leaving out liquidity and M&A activity ain't right. Everywhere you look, M&A deals are being announced as private equity firms continue to throw money at the market. As an individual equity investor, why would you unload your shares if there's a bid lurking right around the corner? The premiums being paid are ridiculous (in some cases) and any stock that doesn't take part in the headline rally might or might not become a target. As long as credit remains this cheap, deal-making will most likely continue. But, what happens when standards are tightened and lenders shut down the party? When cheap money dries up, equity prices will lose a major supporting factor
Even suprime and housing stocks are beginning to be picked up again But, the sector still looks extremely unattractive to us. Case in point: Accredited Home Lenders (LEND:xnys) said it will delay filing financial results for 2006 and the first quarter of this year because its auditor needs more time. The company expects a "significant loss'' in the first three months of 2007 as lending dropped 47 percent, Accredited Home said. The stock fell 9 cents to $11.80 in trading after the official close of U.S. exchanges Friday.
Today's calendar is very light, tomorrow will be interesting. On tap is US CPI, Empire Manufacturing and NAHB Housing Market Index. In Europe, a string of UK inflation data is expected.
Company News:
Constellation Brands: Shares of the world's largest winemaker may rise to $29 in 12 to 18 months, or 23 percent, Barron's said, citing Tim Ramey of D.A. Davidson & Co. Constellation stock rose 6 cents to $23.64.
Teva Pharmaceutical Industries fell $1.12, or 2.8 percent, to $38.83 in trading after the official close of U.S. exchanges. The world's biggest maker of generic drugs fell after a U.S. court ruled that Eisai Co., Japan's fourth-largest drugmaker, could enforce its patent on Aciphex, a drug to stop excess production of stomach acid. Teva, which said it will appeal, has been attempting to sell generic versions of the medicine.
Warner Chilcott rose 97 cents, or 6 percent, to $17.16 in extended trading. The maker of health-care products for women reported first quarter adjusted earnings per share of 23 cents, 5 cents higher than the average estimate of 6 analysts polled by Bloomberg.