Thursday, August 9, 2007

Morning Note...

Very volatile close yesterday.  The market sold off on rumors of a Goldman Sachs conference call (Global Alpha?) yet quickly rallied when Goldman denied the rumor.  The sell-off did, however, indicate that there is still plenty of fear regarding the credit markets…which leads us to this morning…

Futures down sharply as BNP has suspended redemptions from 3 funds due to the inability to accurately price its credit securities.  Goldman rumors continue to circulate.  Subprime and credit fears remain in place.   

Looks to be another volatile day…

Announced Deals: 

Rockbay News: TCI raises RTR stake to 1.87%, TGT July sales +10.8% but trading down slightly premkt, BKH earnings, VMW IPO range raised to $27-29 at LEHM, QI raised to Buy on recent peer underperformance at GSCO due to short interest, LEHM positive on SCI buyback but sees no catalyst until Q4, JPMC raises estimates on HRZ to reflect recent refinancing, LEHM cautious on BKD after disappointing quarter and lowers tgt to $52, CVS to settle stock-options backdating litigation, MLCO positive on URS on good earnings report, ACS exclusivity agreement with Cerberus to be reinstated today, FBRC upgrades AA on recent sell-off – sees $40 valuation as stand alone or high $40s takeout, AKE FP reports Q2 – trading down with the rest of Europe, SUG earnings – trading in line premkt,

Vito’s Trivia:  Identify the speaker – 1) "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." 2) "If a little money does not go out, great money will not come in."

Yesterday’s Answer:   August 8th marked the 9th anniversary of the US Embassy bombings in Kenya and Tanzania.