Watchlist for April 1, 2008

We’ve got some strength this morning thanks to folks taking the news of even more write-offs in the financial sector as a bullish sign. Go figure…

On Today’s Calendar:

• 10:00 — Construction Spending
• 10:00 — ISM Index

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

Here are a few charts that caught my eye:

PMC-Sierra, Inc. (PMCS)

Darden Restaurants, Inc. (DRI)

General Electric Company (GE) — THings can’t be that bad if GE is showing strength… can they?

J.B. Hunt Transport Services, Inc. (JBHT) — Given the slowing economy and high fuel costs I was surprised to see JBHT so strong. Another trucking company, CNW, made my scans too.

More trucks?!?! — is Ryder System, Inc. (R) benefiting from people being forced to move?

and one potential short — Suntech Power Holdings Co., Ltd. (STP)

See one of the recent ‘Chart Reading‘ posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.

Potential day trades:

(From Briefing.com)

Gapping Down

In reaction to weak earnings/guidance: GBN -7.1%, BUF -6.4%, PCL -4.2%, RMG -4.1%, KRY -3.1%, TISI -3.1%, CNO -2.9%, APWR -1.0%… Select metals/mining stocks showing weakness with lower spot prices on strength in the dollar: PAL -5.3%, KGC -4.1%, HMY -3.5%, GOLD -3.1%, HL -3.0%, AU -2.8%, CDE -2.7%, ABX -2.5%, GLD -2.4%, SLV -2.4%, GFI -2.3%, MT -2.0%, RTP -1.8%, NEM -1.8% (Newmont Indonesia offers to sell 7% to govt - Reuters.com)… Other news: TMY -9.0% (terminates merger agreement), KFN -4.4% (announces proposed common share offering of 20 mln common shares; also downgraded to Peer Perform at Bear Sterns), ANR -4.0% (announces launch of capital markets transactions), YHOO -2.5% (Microsoft unlikely to raise Yahoo offer - WSJ)… Analyst downgrades: AVCT -5.3% (downgraded to Sector Perform at RBC), HPT -4.5% (downgraded to Underperform from Market Perform at Wachovia), MO -3.6% (downgraded to Equal Wt at Morgan Stanley).

Gapping Up

In reaction to strong earnings/guidance: CDS +7.6%, SPIR +4.2%, GSI +3.6%, OXM +1.3%… M&A news: CAO +18.2% (to be acquired by O’Reilly for $11.00 of O’Reilly common stock plus $1.00 in cash)… Select financial names showing strength with a number of news items out: UBS +8.1% (co releases financial update, seeks fresh capital and expects $19 bln in write-downs; chairman will depart; also upgraded to Buy at Deutsche Bank), BCS +5.0%, RBS +4.1%, LEH +3.6% (to offer 3 mln shares of convertible preferred stock; analyst commentary on offering is generally positive), WM +3.5%, WFC +3.1%, DB +2.9% (faces write-downs of about $3.95 bln), WB +2.8%, MER +1.9%, MS +1.9%, DB +1.8%, C +1.8%… Other news: TMA +35.5% (raised $1.35 bln through private placement of senior subordinated secured notes and warrants), CEGE +34.9% (Cell Genesys and Takeda announce global alliance for the development and commercialization of GVAX immunotherapy for prostate cancer), IMH +18.1% (announces the co has settled a majority of repurchase liabilities), ATN +4.9% (Cramer makes positive comments on MadMoney), VVUS +4.5% (completes special protocol assessment for Phase 3 efficacy studies and reaches agreement with FTA on the studies), NOK +3.8% (still checking), MOT +2.5% (Videocon to bid for Motorola’s global mobile business, Chairman says - DJ), SRDX +2.3% (announces first human use of SynBiosys biodegradable polymer on cardiomind drug-eluting stent), STP +2.0% (Nitol Solar and Suntech expand Polysilicon supply agreement), DELL +1.4% (undertaking a strategic assessment of ownership alternatives for its Dell Financial Services financing activities), CYTK +1.2% (announces CK-1827452 demonstrates increase in left ventricular function with no increase in myocardial oxygen consumption in canine model), BAP +1.1% (Cramer makes positive comments on MadMoney)… Analyst upgrades: HANS +4.8% (upgraded to Buy at tier 1 firm), PIR +4.5% (upgraded to Buy at Deutsche Bank and initiated with a Buy at Jesup and Lamont), BWLD +4.1% (upgraded to Outperform at Keefe Bruyette), AKAM +3.6% (upgraded to Buy at Piper), AZN +3.5% (upgraded to Neutral at JPMorgan), ANSS +3.0% (upgraded to Buy at Jefferies), ATHR +2.8% (upgraded to Overwt at Weisel), VMW +2.8% (upgraded to Outperform at Wachovia), WBD +2.6% (upgraded to Buy at Merrill), ADBE +1.6% (added to Alpha List at Piper Jaffray), AAPL +1.5% (reinstated with Buy at Merrill), BG +1.3% (upgraded to Outperform at BMO).

Disclaimer & How I use this list