Stocks to Watch: Weekend Edition

I like to use the weekend to take note of stocks being covered in the major media outlets, and make a shortlist of stocks I will definitely be watching on Monday.

Barron’s Cover:

Apple Inc. (AAPL)

…And the Award Goes to Apple! The tech titan tops our global ranking for the second straight year, followed by Amazon and Berkshire Hathaway.

Barron’s Highlights of Note:

Cisco Systems Inc. (CSCO)
Tech Trader: No Big Rush To Buy Cisco, Nokia — Or Verizon IPhones.
A Return Visit To Earlier Stories: Cisco Must Deliver On Promises

CSCO trended steadily Thursday and Friday after Wednesdays disappointing earnings report. We had mentioned on the T3 Live broadcast how CSCO was suspect to check prior days lows in the pre market on Friday. I will be guarding for Fridays lows of $18.61 for a scalp re-entree possibly considering these negative Barron’s note’s, the gravity of selling, and relative weakness to the broader markets.

NYSE Euronext, Inc. (NYX)

The German bid for NYSE Euronext would create a global powerhouse. An insult to America, or just an opportunity for shareholders of both sides?

Yet, most likely, if a final agreement is struck, it is thought to stand a good chance of approval, perhaps after some antitrust concessions. If so, it would be a nice win for NYX shareholders, who would own 40% of the resulting $25 billion company by market value. Sandler O’Neill analyst Richard Repetto figures that the market has gone most of the way toward pricing in the deal’s potential upside, but not completely, and only if one makes conservative assumptions about cost savings, revenue “synergies” and the eventual stock valuation. Assuming only the minimal operating benefits, NYX would be worth $40.76 a share today, he says, or 6.4% above Friday’s close of 38.31. Penciling in slightly higher savings and some revenue pickup gets the price to the high $40s.

NYX rallied .55c into the last 15 minutes of trading on Friday, looking for continued strength considering (Michael Santoli) ‘s insight and the round level 40 looming above. If Barron’s says high 40’s and we have a continuing trending market this is suspect to be another good idea. Also note sympathy plays on this event (ICE, NDAQ)

Egyptian Stocks (EGPT) ETF’s

Barron’s(2/14) Egyptian Stocks Are Ready To Rally Equity proxies in the U.S. and London that have kept on trading while the local market was closed, such as the Market Vectors Egypt Index exchange-traded fund (ticker: EGPT), suggest Cairo stocks could jump some 15% from their depressed levels in late January.

(I haven’t traded this ETF as I took notice of it last week. On Friday there was a good headline momentum entry but you had to be quick. It seems there is an ETF for everything nowadays’s. This one is suspect to see some additional follow through price action considering the weekend press intensity)

Devon Energy Corporation (DVN)

A Champ Among Domestic Drillers

Devon is expected to increase production by 6% to 8% this year, focusing on crude and high-margin gas liquids, which could lead to a big jump in earnings in 2012. Analysts have penciled in profits of about $6 a share for this year and last, rising to $7.92 in 2012. Devon is scheduled to report 2010 results Wednesday.

Devon’s shares have more than doubled, to near 86, since March 2009. But they aren’t expensive at 14 times 2011’s estimate and 11 times next year’s forecast, given the industry’s average price/earnings ratio of 19.

(Ill be guarding (DVN) ‘s strong daily for a continued cupping pattern towards the 90 level if we get back above Thursday’s 87.01 level. Company reports Wed before the open)

By: Tim Kelleher

Disclosure: No positions

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