Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Genentech's Good Genes


Strengthen your portfolio in good times and bad.

Genentech Misses But Redeems on Outlook

Genentech (DNA) announced its earnings for its second quarter. According to Bloomberg the largest maker of cancer drugs in the U.S. said earnings increased to 73 cents a share, or $782 million.

The company missed analysts estimates by 4 cents due to an increase in spending on research, marketing, as well as stock-based compensation. Revenues jumped 8% in the quarter to $3.2 billion, lead by Avastin which gained from a new use in breast cancer. Further, shares were up in the premarket after the company raised its 2008 forecast from the $3.35-$3.45 range to $3.40-$3.50 range. See Professor Kevin Depew's recent comments in DepewTube.

From the Bull Pen: Those bullish DNA can set sell-stops below $75. Professor Depew also mentioned the biotech index ETF (IBB); near-term sell-stops can be set below $79.

From the Bear Cave: One downside play could be in Merck (MRK); bears could fade rallies towards the $40 mark.

Waste Wars

The Wall Street Journal reports Waste Management (WMI) has offered to buy No.3 rival Republic Services (RSG) for $6.3 billion. The figure amounts to $34 per share and represents a 22% increase over RSG's Friday closing price. It is an apparent attempt to thwart the deal announced last month involving Allied Waste Industries (AW) and RSG for $6.24 bln. A deal between WMI and RSG would leave just under half the country's permitted landfill capacity in the control of the company. Republic said it will review WMI's proposal.

From the Bull Pen: The waste industry has been strong despite the weakness in the broad markets, so bulls have another upside alternative in Covanta Holding (CVA); entry near the 50 DMA ($27.40) may be an option.

From the Bear Cave: Bears might see further weakness in WMI in the near term; buy-stops can be set above $35 on downside tries.

For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.

Quick Check Around the World

Asian trading closed with the Hang Seng -3.81%, Nikkei -1.96%, Sensex -4.91%, Taiwan -4.51% and Shanghai -3.43%.

A quick check across the pond finds the CAC -2.20%, DAX -2.95%, FTSE -2.66%

As of 8:30 AM EST, S&P futures are lower -13.5 points to 1214 , and Nasdaq futures are down -17 points to 1785.

A Look At Commodities

In commodities, crude oil is up +1.31 to 146.50. Gold is higher +12.80 to 986.50. Silver is up +0.2000 to 19.375, and copper is lower -0.65 to 376.30.

The dollar index is down -0.546 to 71.369.

On the Radar

Producer price index (m/m): 1.8% vs. 1.4% cons.
Core PPI (m/m): 0.2% vs. 0.3% cons.
PPI (y/y): 9.2% vs. 8.7% cons.
Core PPI (y/y): 3.0% vs. 3.2% cons.
Advance Retail Sales: 0.1% vs. 0.4% cons.
Retail Sales Less Autos: 0.8% vs. 1.0% cons.
Empire Manufacturing: -4.9 vs. -8.0

10:00 Business Inventories: 0.5% cons, 0.5% prior

Click here for the full trading radar.

Good luck today!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos