Before The Bell: Abu Dhabi To Citi Rescue, Activision Shines
Abu Dhabi gives Citi $7.5 bln. Activision raises outlook. Futures are up this Tuesday.
The WSJ reports Citigroup (C) will receive a $7.5 bln capital infusion by the Abu Dhabi Investment Authority. As a result, the investment authority, known as ADIA, will acquire a stake in the company totaling no more than 4.9%, but making it the company's largest shareholder exceeding that of Saudi Prince Alwaleed bin Talal. In a press release, acting CEO Win Bischoff said "the investment from one of the world's leading and most sophisticated equity investors provides further capital to allow Citi to pursue attractive opportunities…" Read Mark Bloudek's column, Citigroup: The Real Deal.
From the Bull Pen: Those looking for a bullish set-up in the financials may look to JP Morgan (JPM) with a sell-stop below $40, Bank America (BAC) with a sell-stop below $41.5 and Mastercard (MA) with a sell-stop below $175.
From the Bear Cave: Those looking to fade (read: sell) into the early bank strength may look to Goldman Sachs (GS) as it approaches its 200-day moving average at $212.
Activision (ATVI) raised its outlook for the fiscal third quarter due to strong sales in titles such as "Guitar Hero III: Legends of Rock" and "Call of Duty 4." The company now expects EPS of $0.70 vs. previous analyst estimates of $0.56, on revenues of $1.225 bln vs. $1.04 bln consensus. Further, Chairman and CEO Robert Kotick stated "We are confident that the third quarter of fiscal 2008 will be the largest and most profitable quarter ever." Professor Macke has been bullish on Activision. See his article from last month, Oracle Gets Ichanic.
From the Bull Pen: As ATVI is up in the premarket, those bullish may find an entry-point should the stock retest its gap. Sell-stops may be set below the recent low ($18.81).
From the Bear Cave: Bears may see a play in Take Two Interactive (TTWO). Buy-stops in the near-term may be placed above the 20-DMA ($15.95).
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -1.51%, Nikkei +0.58%, Sensex -0.62%, Taiwan -1.79% and Shanghai -1.97%.
A quick look towards Europe finds the CAC -0.44%, DAX -0.71%, FTSE -0.64%, ATX -1.09%, Swiss Mkt. +0.45% and Stockholm -0.26%.
A Look At Commodities
Crude oil is lower by -1.73 to 95.97. Gold is down -11.7 to 814.8. Silver is down -0.33 to 14.50. Copper is lower -5.15 to 299.90.
As of 8:45 AM EST, S&P futures are up by +7.50 points and Nasdaq futures are up by +10.0 points.
On the Radar
At 10:00 AM Consumer Confidence will be released with consensus estimates calling for a figure of 91.5
Click here for Minyanville's full trading radar.
Good luck Today!
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