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(USGovernment-News.Com, July 15, 2012 ) New York, NY -- This week will be full of earnings reports that could make or break the summer trading trends. VFC's Stock House, an information and research outlet that brings ideas and opens discussions to a broad spectrum of investors, highlights some key reports and brings additional ideas to the investing table in this week's 'Weekly Stock Watch' report.
Interest will be heavy on the big banks this week, following a solid end-of-week report by JP Morgan Chase (JPM).
Friday's rally that drove the DOW over two hundred parts higher was largely attributed to relatively solid earnings reports from both JP Morgan Chase (JPM) and Wells Fargo & Co (WFC). To its credit, Wells Fargo recorded "record net income" for the most recently completed quarter, a factor that sent WFC shares higher by over three percent on Friday, but eyes were more heavily watching the report coming from JP Morgan, thanks to investors looking for a more valid estimation of the huge investment loss incurred by the bank during the quarter.
Original estimates placed the loss at around two billion dollars, but the number released on Friday was $5.8 billion - a far cry from the original estimates - and it's expected that the true number may be higher still. That didn't keep JPM shares from rallying after the earnings report, though. Investors were satisfied with the $5 billion in net income registered by the big bank and shares closed higher by roughly three percent on Friday, after initially spiking as much as 6%. Shares received another boost when Wells Fargo reaffirmed its tag of "outperform" on JPM - although the obvious conflict-of-interest of one bank rating another still offers a good credibility laugh.
The banks will still be in play during the coming week, with both Citigroup (C) and Bank of America (BAC) set to report, although it's not expected that either would have the market-moving impact that JP Morgan had last week.
Another huge story to monitor, too, is the Libor-fixing headlines that may not be getting too much attention stateside, but are dominating the financial news overseas. Barclays of London has taken much of the Libor-related brunt thus far since it is the first big bank to fully cooperate with authorities and admit to alleged rate-fixing, but the scandal has the potential to still rock the banking sector worldwide. Barclays fines of nearly half a billion dollars could just be a start for the sector, as the total number for all associated banks could reach over $20 billion in fines, according to some analyst estimates, once the investigating is all said and done.
Telecom:
Verizon (VZ): Verizon shares set a new 52-week high during Friday's rally, in anticipation of an earnings report that's due to hit the street this week. Additional revenue has started to roll in as the result of rate and fee hikes, mainly related to data usage, Fios speeds and higher new phone charges, and analysts estimate a profit of 64 cents a share on $28.54 billion in revenue for the company.
Another significant factor for Verizon has been the ability of the company to lure users away from competitors thanks to now having the right to sell iPhones.
Verizon's report this week will set the stage for AT&T (T) to report the following week.
Teletouch Communications (TLLE): Teletouch Communications has been refocusing its business plan to concentrate on the profitable business of distribution and hardware sales for many of the main companies and giants of the sector. A new addition to the sales and management team announced last week validates the company's profound move into distribution and sales arena and bodes well for both the short and long term growth prospects for the company.
The addition of Timmy Monico, a thirty year veteran of the industry, as Vice President of Sales for its distribution unit, PCI Wholesale, brings with it a Rolodex of new contacts and experience that immediately add respectability to a still relatively small player like Teletouch.
Given the recent moves by the company, that include a few new distribution contracts signed over the past couple of months, TLLE could be a potential growth story in the making.
Explosive Trace Detection and Homeland Security:
Implant Sciences (IMSC): Another modest decline on Friday - after shares had quadrupled in price in relatively swift fashion over the past weeks - may have Implant Sciences shares approaching buy territory again.
As investors await news on a potential TSA approval for its Quantum Sniffer explosive trace detection technology that could launch the company into the mainstream of homeland defense circles, the company announced last week that it had received a follow-on order from the private sector in Nigeria to provide hotel security.
Healthcare, Biotech, Pharmaceutical:
Sunshine Heart (SSH): Shares of Sunshine Heart continued to explode last week, hitting highs of over seventeen dollars before coming back down to earth and closing the week at $12.68. Those realized price gains are monumental considering that the stock traded for $2.50 less than three weeks ago. The volume behind the price spike was also monumental, considering the lightly-traded nature that surrounded SSH over the prior months.
Amarin Corp (AMRN): Amarin has long been on the hot list as both an FDA 'approval play' and as a potential 'buyout play' based on the potential of AMR-101, a treatment for high triglycerides that is slated to receive (or not) an FDA approval later this month. Given the solid Phase III data of the AMR-101, it's widely assumed that the FDA will approve - a theory I agree with - which opens the door for either a large partner to jump on board and commercialize the product or - maybe more probable - for a much-speculated buyout to occur.
Titan Pharmaceuticals (TTNP): Shares of Titan Pharmaceuticals opened the month of July trading at sixty five cents. Just two weeks later shares are trading for seventy nine cents, a significant percentage increase for those that took advantage of the dip, and are threatening to quickly move higher as volume has been picking up at an impressive rate.
Advanced Cell Technology (ACTC): Shares of Advanced Cell Technology have rebounded close to ten cents again after encouraging news on the trial front has circulated the wires.
On Monday of last week the company announced that a "Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company’s three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of additional patients in its clinical trial for dry age-related macular degeneration (dry AMD)."
The authorization to move forward, and at a higher dosage, is viewed as a validation of the potential of the company's stem-cell technology that is being investigated in multiple trials for the treatment of conditions of severe blindness.
MRI Interventions (MRIC): MRI Interventions is another one to not let stray too far from sight. Having traded for closer than a buck than two just weeks ago, shares touched a high of five bucks recently on high volume before settling down and closing last week at the $3.50 mark.
The company also raised six million in cash earlier this month.
VFC's Stock House is an information and research outlet that brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - biotech stocks, biopharma stocks, growth stocks and the pharmaceutical and healthcare sectors. VFC's Stock House provides individual company profiles, write-ups and reports as well as giving general insights into broader-market news through various 'Stock Watch' lists. At the conclusion of most weeks, VFC's Stock House issues a "Weekly Stock Watch" that examines news items, stocks and stories that made headlines during the previous trading week, but may also make headlines or influence trends during the upcoming week as well. The information contained within the pages of VFC’s Stock House are not intended to be taken as advice, but as a starting point where investors can follow up with their own DD and devise their own entry and exit strategies.
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