Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

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Friday, August 25, 2006

Market Wrap (August 25, 2006)

DJIA 11,284.05; Down 20.41 (0.18%)
NASDAQ 2,140.29; Up 3.18 (0.15%)
S&P500 1,295.09; Down 0.97 (0.07%)
10YR-Bond 4.791%

Today we got to deal with the news that a tropical depression could be upgraded overthe weekend in Tropical Storm 'Ernesto' and it is likely to enter the Gulf of Mexico; and since it has a Latino name maybe it will stay South of America. Despite the warnglings in Iran and despite Bernanke speaking with no mention of rates or the economy, today was dead quiet and Atr Cashin on CNBC said it was like commuting on the carousel where you have to pay for your ticket but end up where you started. The markets ended mixed and with the exception of a few news items we would probably like our 9 hours back. This week was as light of volume as a Christmas week.

Taser (TASR) rose 2.3% to $7.71 after getting a follow-on order of $1 million from Florida law enforcement agencies.

Corcept Therapeutics (CORT) shares were decimated by 55% to $$1.55 after it barely exceeded the placebo in its psychotic Phase II trials.

XM Satellite Radio (XMSR) rose another 4.6% to $13.50 after the FCC approved its 3 new radio designs, which will allow it to be manufactured and shipped in time for the holiday season.

Home Depot (HD) rose a whopping 0.2% to $33.48 after no one seemed to notice that they added $3.5 Billion to their shares buyback plan.

Ford (F) rose 3% to $8.01 after Robert Rubin resigned from the B.O.D. to avoid any potential conflicts from his relationship with Citigroup; then reports came later in the day that Citigroup was named as a lead advisor.

J Crew (JCG) fell 2.5% to $26.01 after having its first earnings report as a public company. The company had EPS of $0.20 vs $0.17+e, but revenues looked a tad light.

Dyax Corp (DYAX) rose 17% to $3.35 after the company essentially entered into an upfront payment and factoring agreement with Paul Capital Royalty Fund.

H&R Bloch (HRB) fell 8% to $20.81 on word of its $61+ million charge being set aside.

Isle of capri (ISLE) fell 12% to $19.26 after posting lower than expected earnings.

Finish line (FINL) rose almost 5% to $10.87 despite being down as much as 10% pre-market on lowered earnings guidance. The valuations are the reason for the recovery.

Brinks (BCO) rose 3.5% to $57.20 after a Business Week article said it was set to unlock value.

USG (USG) rose 3.8% to $48.80 after Berkshire Hathaway lifted its stake in the company.

Hoku Scientific (HOKU) rose a sharp 35% to $4.65 after it was upgraded at Piper Jaffray, which was the 'Analyst Call of the Day' after it hired a consultant to move forward with developing another manufacturing facility.

Toyota Motors (TM) fell almost 2% to $106.20 after the company is reportedly delaying some new models because of quality control issues.

Google (GOOG) was largely unchanged for the most part closing down 0.1% at $373.26 after reports surfaced saying it was at the same risk as being classified as a mutual fund.

Thanks and have a nice weekend.

Jon C. Ogg
August 25, 2006

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