Rita No Katrina: Monday's Action Positive
The bulls are back!As we guessed it would, the market is rallying today.
We're all breathing a sigh of relief as investors assess the damage of the gulf and find that Hurricane Rita was no Katrina.
Some companies reported the toll the storms took on their businesses.
Walgreens, which we told you to stay away from (when we put a buy rating on CVS last week) is down $2 after reporting dismal earnings.
Walgreens had to shut down 75 stores due to Katrina.
On the upside, we recommended female apparel catalog Chicos about 2 weeks ago (in a small Saturday dispatch).
CHS is up today after reporting it walked away from Katrina virtually unscathed.
The float on Chicos is thinner than Paris Hilton, so pops in the stock price are not uncommon.
Finally, Microsoft and Palm joined forces today.
MSFT will lend its operating system to Palm's ubiquitous Treo smart phone.
We'll only say it once more: Buy Microsoft.
It's been 10 years since we've seen this many revenue generators in MSFT's pipeline.
We're issuing a $38 price target on Microsoft shares.
Lastly, Genentech stock is getting slammed today after a research note started circulating throughout Wall Street.
The note is from a SG Cowen biotech analyst who thinks Lucentis will bring in half a billion dollars less in revenue than was previously expected.
The strange thing is that Lucentis isn't even on the market yet -- but Avastin is, and Avastin is cannibalizing sales expected for Lucentis, an age-related macular degeneration drug set to hit shelves next year.
We're demoting DNA from our earlier hold rating.
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