Monday, December 28, 2009

Select calls: AAPL, NANO, ASEI

I´m going to give you a quick overview of today´s calls:

- Apple (NASDAQ:AAPL) is likely on the move today again as Thomas Weisel is raising their price target to $250 (from $245) on checks that are pointing to above-expectations iPhone & iMac sales. Broadpoint.Amtech is raising their price target to $260 noting their iPhone sales estimates are 30% above consensus for Dec 09.

Notablecalls: The stock is just begging for a reason to move higher. Wants new highs. Wants $212+ today.

- Nanometrics (NASDAQ:NANO) price target is raised to $17 (from $13) at Piper Jaffray this morning as they believe that there is upside to their estimates as more chip makers increase spending and NANO introduces a new overlay tool. Moreover, the firm believes that it is in leading chip makers' best interests to broaden their supplier bases and NANO is a prime beneficiary of this effort.

Notablecalls: NANO seems to be one the sexiest Semi Equipment names out there. I suspect the bump from PJCO will create enough buy intrest to propel the shares to $12+ today. I would not rule out $12.50 level today if the market plays ball.

- American Science & Engineering (NASDAQ:ASEI) will be on the move today for sure as Stifel noted that on December 24, the U.S. Army posted a notice indicating that it intends to negotiate solely (as prescribed in FAR 6.302-1, which states policies and procedures, and identifies the statutory authorities, for contracting without providing for full and open competition) with AS&E to provide thirty-seven Z-Backscatter Military Trailers (ZBMTs) to meet' requirements in Afghanistan. The notice was not a request for competitive proposals as AS&E is considered to be the only source for the equipment. Stifel thinks the order is worth more than $1 million per unit.

Unfortunately, recent events have shown that acts of terror are still being attempted and that, globally, current passenger screening procedures are inadequate to stop such threats. On Christmas day, a passenger on an international flight inbound to a destination in the United States attempted to detonate an explosive device. The components of the device made it past the typical walk-through metal detector and x-ray parcel screener. Stifel thinks (along with many air travel security experts quoted over the weekend) that whole-body imagers and reduced size CT x-ray automated explosive detection systems could provide the solution. AS&E's SmartCheck and Analogic's eXaminer SX are among a handful of products that are capable of detecting the materials that were carried aboard and assembled during the flight. Orders for competitors' equipment are currently being filled, but the firm thinks the recent attempt could accelerate purchases of the equipment. AS&E (ASEI - $71.70) is rated Buy and Analogic (ALOG - $36.20) is rated Hold. They think both stocks are likely to rise today.

Notablecalls: A $40-50mln contract and a juicy terrorist scare in just one weekend. All of a sudden homeland security is hot hot hot again. I think ASEI can trade up 3+ pts on this.

No clue on ALOG. Too thin.

2 comments:

TickerTutor said...

fwiw, the only reason i'd be skeptical on that call on NANO is Piper being the sole manager on that offering.

Thanks for all your daily updates, man. i follow your stuff every morning.

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