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Before The Bell: Nintendo's High Quality Problems; Tata Motors Leading Bidder; Futures Up


Nintendo is struggling to keep up with demand. Tata Motors is bidding for Jaguar and Land Rover. Stock futures are up.

Morning Perspective: Nintendo's High Quality Problems

Reuters reports Nintendo's (NTDOY) U.S. president said the company is seeing signs of higher-than-expected demand for its DS handheld device. The company, already struggling to keep up with demand for its Wii video game console, said the DS is performing "exceptionally well" with retailers concerned about inventory levels throughout the holiday. Just last Friday the company said it will offer a "rain check" program to deliver the Wii in January due to such inventory shortages. Professor Jeff Macke mentioned Nintendo in Taking A Load Off The Year-End Books.

From the Bull Pen: Bulls believing there is more upside in Nintendo may play the stock with sell-stops below $66.00. A tertiary play may include Activision (ATVI); sell-stops below recent lows ($24.70).

From the Bear Cave: Bears may find a downside play in Microsoft (MSFT); buy-stops above the downtrend from the November high ($35.75).

Tata Motors Leading Bidder

NYT reports Indian auto company Tata Motors (TTM) is the front runner for Ford Motor's (F) Jaguar and Land Rover brands. The company which also makes tractor-trailers, SUVs, and the world's cheapest car is the leading bidder in deal that could fetch up to $2 bln. Jaguar dealers have expressed concern, however, that its brand name could be hurt by an Indian buyer. A decision could be announced within the next few days. Professor Fil Zucchi's writes about India's market in Settling Into The Bear Camp.

From the Bull Pen: Bulls believing the deal will add value to Tata Motors may place sell-stops below the uptrend ($17.00). Those with a higher risk profile can attempt an upside in Ford; sell-stops below the 52 wk low ($6.75).

From the Bear Cave: Professor Zucchi said he is leaning toward longer term short exposure to India, via the India Fund (IFN). Bears may see an entry in IFN due to a potential head and shoulder pattern should the stock rally to $65; buy-stops may be set above.

Click on Minyanville's Stocks To Watch for more company-specific ideas.

Quick Check Around the World

Asian trading closed withe the Hang Seng +0.51%, Nikkei -0.27%, Sensex -0.94%, Taiwan -0.30% and Shanghai -0.83%.

A quick check of Europe finds the CAC +0.67%, DAX +1.05%, FTSE +0.63%, ATX +1.26%, Swiss Mkt. -0.08% and Stockholm +0.56%.

A Look At Commodities

Crude oil is higher this morning +1.03 to 91.66. Gold is up +6.7 to 806.00. Silver is up +0.22 to 14.20, and copper is down -1.3 to 287.60.

As of 8:30 AM ET, S&P futures are up by +12.1 points, and Nasdaq futures are up by +18.0 points.

On the Radar


Building Permits: 1152 k vs. 1150 k cons

Housing Starts: 1187 k vs. 1176 k cons. Prior revised to 1232 k from 1229 k.

Click here for the full trading radar.

Welcome back to Turnaround Tuesday! Good luck!
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