Weekly Market Overview

U.S. markets started the week on a positive note after a rough week last week that dropped down down below 14,000. The markets were dragged down by subprime issues and a difficult credit market but troubles were eased today after the S&P upgraded JP Morgan's credit rating to AA-minus, saying that concerns about the company's subprime exposure and credit issuers were overrated. Meanwhile, Sowood Capital, a $3 billion hedge fund, announced that it lost 50% of its value last month and would be liquidating the fund - selling its assets to Citadel. So, while the subprime market appears to be partially recovering the credit market still has problems that many hedge funds may end up struggling with. And in the end, this could reduce the deal flow that we have seen prop up the stock market recently - we'll have to wait and see...

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Brinks Company (BCO) – The Brink’s Company remains on our watchlist since both MMI and Pirate Capital still hold significant stakes in the company. The company recently announced higher than expected earnings along with a dividend increase. We are still waiting to hear about the activist situation.
   
2. Ceridian Corporation (CEN) – Bill Ackman’s activist play also continues to hold appeal with us since the breakup could unlock substantial value. We have not seen an announcement of an official date, but as of March 13th, Pershing Square is still engaged in a proxy contest with the company’s board of directors. Recently, Pershing Square lost its battle to obtain questionable letters, but vowed to continue pursuing its objectives. However, news came out today stating that one potential buyer of Ceridian was able to obtain $3.5 billion in debt financing, which is great news for shareholders holding out for a buyout. Meanwhile, shareholders recently won a lawsuit against the company that may level the competitive bidding landscape, paving the way for an increased bid.
   
3. Hexcel Corporation (HXL) – OSS Capital demanded today that the company engage an investment bank to explore strategic alternatives. The company’s shares are worth $14 per share above the current market price if priced at its peers’ levels. All we are waiting on is the support of the board of directors! Meanwhile, the company has received several analyst upgrades and sits near its 52-week high.
   
4. Applebees International (APPB) – Breeden Capital Management first approached Applebees several months ago suggesting that the company put itself up for sale. Three weeks ago, the company announced that it had received several takeover offers and would review the bids before taking final offers. Recently, the company also agreed to yield two board seats to activist investor Breeden Partners. The company finally announced a sale today at $2.1 billion - a 4% premium to Friday's close and a substantial increase from when we first mentioned the stock.
   
5. Universal Power Group (UPG) – 3V Capital Management announced last week that they weren’t pleased with the company’s valuation. They recommended several changes that they hope would enhance shareholder value. We are still waiting on more details and a response from the company, but this was definitely a stock worth following!

Technical Analysis

1. Lance Inc. (LNCE) - Intermediate term bullish continuation diamond.
2. Epsey Mfg & Electronics (ESP) - Intermediate term bullish ascending continuation triangle.
3. Sungard Data Systems (SDS) - Intermediate term bullish megaphone bottom.
4. Zoll Medical (ZOLL) - Intermedaite term bullish head and shoulders bottom.
5. Seabright Insurance (SEAB) - Long term bullish continuation diamond.
   

Packeteer Inc. (NDAQ:PKTR) shares moved up marginally today after Chapman Capital disclosed a 9.9 percent stake in the company and demanded that the company immediately hire an investment bank to maximize shareholder value. The wireless application provider has been facing widespread criticism since posting a wide loss during the second quarter of this year. Shareholders are hoping that Chapman can help unlock value through a sale of the company. (Read More)

Tip of the Week : The Mechanics of a Share Buyback

There are a number of ways in which companies can return cash to shareholders other than the usual dividend payments. One of the most common ways is through something called a share buyback. This article will take a look at what a share buyback is and what it means for shareholders. (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

U.S. markets started the week with a bang after a series of mergers and acquisitions pushed financial, oil-drilling and equipment-rentals higher while strong earnings announcements from Merck and others helped out the general indexes. Acquisition activity is what has been driving the markets for the past six months and dealflow shows no sign of slowing amid low costs of debt, eager investors and series of public hedge funds. Meanwhile, credit markets were a lot more passive after last weeks volatility. Investors should look towards a broad trend upwards with an eye out for any meaningful corrections - after all, there is plenty of justification for one these days!

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Brinks Company (BCO) – The Brink’s Company remains on our watchlist since both MMI and Pirate Capital still hold significant stakes in the company. The company recently announced higher than expected earnings along with a dividend increase. We are still waiting to hear about the activist situation.
   
2. Ceridian Corporation (CEN) – Bill Ackman’s activist play also continues to hold appeal with us since the breakup could unlock substantial value. We have not seen an announcement of an official date, but as of March 13th, Pershing Square is still engaged in a proxy contest with the company’s board of directors. Recently, Pershing Square lost its battle to obtain questionable letters, but vowed to continue pursuing its objectives. However, news came out today stating that one potential buyer of Ceridian was able to obtain $3.5 billion in debt financing, which is great news for shareholders holding out for a buyout. Meanwhile, shareholders recently won a lawsuit against the company that may level the competitive bidding landscape, paving the way for an increased bid.
   
3. Hexcel Corporation (HXL) – OSS Capital demanded today that the company engage an investment bank to explore strategic alternatives. The company’s shares are worth $14 per share above the current market price if priced at its peers’ levels. All we are waiting on is the support of the board of directors! Meanwhile, the company has received several analyst upgrades and sits near its 52-week high.
   
4. Applebees International (APPB) – Breeden Capital Management first approached Applebees several months ago suggesting that the company put itself up for sale. Three weeks ago, the company announced that it had received several takeover offers and would review the bids before taking final offers. Recently, the company also agreed to yield two board seats to activist investor Breeden Partners. The company finally announced a sale today at $2.1 billion - a 4% premium to Friday's close and a substantial increase from when we first mentioned the stock.
   
5. Universal Power Group (UPG) – 3V Capital Management announced last week that they weren’t pleased with the company’s valuation. They recommended several changes that they hope would enhance shareholder value. We are still waiting on more details and a response from the company, but this was definitely a stock worth following!

Technical Analysis

1. Haliburton Co. (HAL) - Intermediate term bullish upside breakout.
2. Imax Corp. (IMAX) - Intermediate term bullish symmetrical triangle.
3. Progenics Pharmaceuticals (PGNX) - Intermediate term bullish tripple bottom.
4. Delta Petroleum Corp. (DPTR) - Intermediate term bullish bottom triangle.
5. Adolor Corp. (ADLR) - Intermediate term bullish diamond bottom.
   

American Standard Companies Inc. (NYSE:ASD) announced last week that its spin-off of WABCO Holdings Inc. (NYSE:WBC) is set to take place on July 31st. Under the terms of the deal, shareholders are American Standard on record July 12th will receive one share of WBC for every three shares of ASD that they own. Investors and shareholders should watch this spin-off as it presents several opportunities to profit! (Read More)

Tip of the Week : How to Profit from Activism

Shareholder activism is becoming an increasingly large part of the investment equation. Many hedge funds are actively engaging management in efforts to unlock shareholder value, but are these efforts actually helping or hurting investors? This article will take a look at the past, present and future of shareholder activism. (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

U.S. markets started the week on a positive note yet again following strength in blue chips. The Dow stands at the apex of yet another record - 14,000 - amid continued strength in dealflows. Broader indexes fell, however, ahead of key earnings releases later in the week. Some are betting that the economy will begin to slow after retail reports last week indicated some initial weakness in consumer spending. Whether or not a slowdown materializes remains to be seen; however, investors should be careful this week amid such record gains.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Brinks Company (BCO) – The Brink’s Company remains on our watchlist since both MMI and Pirate Capital still hold significant stakes in the company. The company recently announced higher than expected earnings along with a dividend increase. We are still waiting to hear about the activist situation.
   
2. Ceridian Corporation (CEN) – Bill Ackman’s activist play also continues to hold appeal with us since the breakup could unlock substantial value. We have not seen an announcement of an official date, but as of March 13th, Pershing Square is still engaged in a proxy contest with the company’s board of directors. Recently, Pershing Square lost its battle to obtain questionable letters, but vowed to continue pursuing its objectives. However, news came out today stating that one potential buyer of Ceridian was able to obtain $3.5 billion in debt financing, which is great news for shareholders holding out for a buyout. Meanwhile, shareholders recently won a lawsuit against the company that may level the competitive bidding landscape, paving the way for an increased bid.
   
3. Hexcel Corporation (HXL) – OSS Capital demanded today that the company engage an investment bank to explore strategic alternatives. The company’s shares are worth $14 per share above the current market price if priced at its peers’ levels. All we are waiting on is the support of the board of directors! Meanwhile, the company has received several analyst upgrades and sits near its 52-week high.
   
4. Applebees International (APPB) – Breeden Capital Management first approached Applebees several months ago suggesting that the company put itself up for sale. Three weeks ago, the company announced that it had received several takeover offers and would review the bids before taking final offers. Recently, the company also agreed to yield two board seats to activist investor Breeden Partners. The company finally announced a sale today at $2.1 billion - a 4% premium to Friday's close and a substantial increase from when we first mentioned the stock.
   
5. Universal Power Group (UPG) – 3V Capital Management announced last week that they weren’t pleased with the company’s valuation. They recommended several changes that they hope would enhance shareholder value. We are still waiting on more details and a response from the company, but this was definitely a stock worth following!

Technical Analysis

• Network Appliance Inc. (NTAP) - Intermediate-term bullish continuation wedge.
• Jabil Circuit (JBL) - Intermediate-term bullish megaphone bottom.
• Time Warner Telecom Inc. (TWTC) - Intermediate-term bullish head and shoulders bottom.
• China 3G Group (CHCG) - Intermediate-term bullish upside breakout.
• Vanda Pharmaceuticals (VNDA) - Long-term bullish symmetrical continuation triangle.
  

Target Corporation (NYSE:TGT) appears to be a big hit with Bill Ackman after his Pershing Square Capital Management disclosed a 9.6 percent stake in the company, confirming rumors that surfaced late last week. Investors are hoping that the famed activist investor can help unlock value in the retail giant that has been experiencing a lower valuation than many feel deserved the company. (Read More)

Tip of the Week : The New Debt - Equity Linked Notes

The Dow Jones Industrial Average and NASDAQ have both hit new highs amid a buying frenzy by retail and professional investors alike – who wants to buy debt securities these days? Well, high net worth individuals are quickly turning their attention to a sexy new debt instrument that aims to redefine the debt landscape... (Read More)

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.

Weekly Market Overview

U.S. markets started the week on a positive note following a surge in M&A activity along with unexpected growth in the nation's manufacturing sector. The move higher comes despite continuing concerns over high energy prices and recent terrorist attacks in the UK. Trading was light, however, ahead of Wednesday's Independence Day celebration that will close the stock markets for a day. Finally, the treasury yield increased again sparking rumors that we could see another rate cut by the Fed soon.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Brinks Company (BCO) – The Brink’s Company remains on our watchlist since both MMI and Pirate Capital still hold significant stakes in the company. The company recently announced higher than expected earnings along with a dividend increase. We are still waiting to hear about the activist situation.
   
2. Ceridian Corporation (CEN) – Bill Ackman’s activist play also continues to hold appeal with us since the breakup could unlock substantial value. We have not seen an announcement of an official date, but as of March 13th, Pershing Square is still engaged in a proxy contest with the company’s board of directors. Recently, Pershing Square lost its battle to obtain questionable letters, but vowed to continue pursuing its objectives. However, news came out today stating that one potential buyer of Ceridian was able to obtain $3.5 billion in debt financing, which is great news for shareholders holding out for a buyout.
   
3. Hexcel Corporation (HXL) – OSS Capital demanded today that the company engage an investment bank to explore strategic alternatives. The company’s shares are worth $14 per share above the current market price if priced at its peers’ levels. All we are waiting on is the support of the board of directors! Meanwhile, the company has received several analyst upgrades and sits near its 52-week high.
   
4. Applebees International (APPB) – Breeden Capital Management first approached Applebees several months ago suggesting that the company put itself up for sale. Three weeks ago, the company announced that it had received several takeover offers and would review the bids before taking final offers. Recently, the company also agreed to yield two board seats to activist investor Breeden Partners. Shares spiked on June 14th after the company reportedly saw a $2 billion bid; however, we are still waiting to hear any official announcement or of any competitive bids.
   
5. Universal Power Group (UPG) – 3V Capital Management announced last week that they weren’t pleased with the company’s valuation. They recommended several changes that they hope would enhance shareholder value. We are still waiting on more details and a response from the company, but this was definitely a stock worth following!

Technical Analysis

• Marvell Technology Group (MRVL) - Intermediate term bullish diamond bottom.
• Philip Morris (MO) - Intermediate term bullish diamond bottom.
• Carnival Corporation (CCL) - Long term bullish continuation diamond.
• Visteon Corporation (VC) - Intermediate term bullish continuation wedge.
• Calpine Corporation (CPNLQ) - Intermediate term symmetrical continuation triangle.
  

Griffon Corporation (NYSE:GFF) rejected a proposal by the Clinton Group last month to lead a public recapitalization of the company and now the activist hedge fund is fighting back. Shareholders are hoping that the hedge fund will be able to successfully convince management to institute at least some of their measures in order to unlock shareholder value. If they are successful in obtaining a recapitalization, it could unlock signficant value for shareholders. (Read More)

Tip of the Week : How to Profit from Activism

Shareholder activism is becoming an increasingly large part of the investment equation. Many hedge funds are actively engaging management in efforts to unlock shareholder value, but are these efforts actually helping or hurting investors? This article will take a look at the past, present and future of shareholder activism. Read More...

Final Words

The market remains optimistic despite questionable yields and other economic data. While this is good news for investors in the short term, be sure to use caution and only invest prudently.