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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, August 09, 2006

Market Wrap (August 9, 2006)

DJIA 11,076.18; Down 97.41 (0.87%)
NASDAQ 2,060.28; Down 0.57 (0.03%)
S&P500 1,265.94; Down 5.54 (0.44%)
10YR-Bond 4.937%

In another higher oil day with inventories being worse than expected, the DJIA gave up ground yet again afetr the Fed's pause on rates. If you were an old world DJIA investor it was a bad day, but tech stocks were bumped up from Cisco.

Today was all about Cisco Systems (CSCO) with it trading 200 million shares. The networking monster that controls almost every aspect of networking beat earnings with $0.30 EPS vs $0.20e and forecast 15-20% revenue growth after acquisitions. CSCO rose 14% to $19.78.

Toll Bothers (TOL) fell 6% yet again to close at $24.89 after the company said order cancellations would cause the hombuilder to miss earnings yet again. DR Horton (DHI) fell in sympathy.

Infineon (IFX) actually rose 1.9% to $10.73 after getting its crummy Qimonda (QI) DRAM unit IPO priced, but it may have just been up with the semiconductor names after Cisco. QI priced 42 million shares at $13.00, well under the $16 to $18 range for 63 million shares proposed; QI closed at $13.59.

Allis-Chalmers (ALY) priced its 3 million share IPO at $14.50 and closed at $15.27.

ON Semiconductor (ONNN) stock fell 7% to $5.86 after Texas Pacific Group lightened up its stake by selling 30 million shares.

Amerco (UHAL) had a roller coaster of a day after earnings spooked the street until it gave friendly comments in the conference call. It traded as low as $68.68 before making a large recovery to close down only 5% at $83.25.

The Knot (KNOT) fell another 7% to $16.35 ahead of its secondary offering.

BP plc (BP) actually recovered 2 days after the Prudhoe Bay pipeline woes, despite whistleblowers claiming the company knew this was likely to happen. There was a call where the company signaled it may keep part of the Prudhoe Bay pipeline open. BP rose 1% to $70.25 and BPT rose 3.9% to $76.50.

Disney (DIS) slid at the end of the day to close down 0.5% to $28.81 after it beat earnings expectations.

Comverse Tech (CMVT) was lucky closing down only 0.7% at $19.37 after 3 former executives were charged with fraud over its past options backdating.

Multi-Fineline Electronix Inc. (MFLX) fell over 25% to close at $18.29 after the company posted lower quarterly earnings.

Calamos Asset Management (CLMS) fell 3.6% to $24.90 after it was downgraded to "market perform" at Wachovia; also its assets under management slipped to $44.2 billion at the end of July from $45.8 billion in the prior month, but rose from $41.4 billion in the year-ago month.

Banta (BN) rose 34% to $45.60 after Cenveo (CVO) made a buyout offer that the company rejected. CVO gained 4% to $19.35.

Flag Financial, a small Georgia banking operator, actually fell 2.6% to $24.67 after a unit of RBC made a $456 million acquisition of the company.

Despite the ailing airliner winning judge approval for DIP financing of $1.38 billion, Northwest Airlines (NWACQ) closed own 1.8% to $0.54.

Jon C. Ogg
August 9, 2006

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