STOCKS NEWS US-Credit Suisse suggests Dow Chemical calls

Stocks on the move Real-time Equity news U.S. stock market report 1110 ET 16Nov2009 Credit Suisse suggests Dow Chemical calls ------------------------------------------------------------------------------ Dow Chemical Co call options are inexpensive and attractive to gain upside leverage, wrote Credit Suisse equity derivatives strategist Sveinn Palsson in a note. Positive comments from Dow on the integration of its acquisition of Rohm & Haas and its earnings outlook last week was well received. Credit Suisse raised Dow's 12-month target price to $39 from $32, and reiterated Dow as a top pick in the chemical sector. By buying the calls, one takes advantage of the low implied volatility level relative to realized, as well as the steep skew. Palsson recommends March 2010 $32 calls for $1.59. The $32 strike call has a 36 delta and trades at 43.7 volatility points. Alternatively, Credit Suisse suggests a March $32/$25 risk reversal (buy call, sell put), for a net credit of 7 cents. The trade captures the high premium puts trade over calls. The risk of buying a call is the loss of premium paid. The risk of buying a risk reversal is the loss of premium paid, and getting assigned shares at the put strike. Reuters Messaging: [e-mail] 1102 EST 16Nov2009-Par Pharma rises after FDA move ------------------------------------------------------------------------------ Shares of Par Pharmaceutical Cos Inc rose on Monday, after it said it had received regulatory approval from the Food and Drug Administration to market a generic version of Ortho-McNeil's painkiller, Ultram. Being the first one to file for a marketing approval for generic Ultram, Par would get 180 days of marketing exclusivity for the tablet, commencing at its launch. For details, see The stock rose 2.6 percent to $23.43. Reuters Messaging: [e-mail] 1052 EST 16Nov2009-Deutsche Bank upgrades three dry bulk shippers ------------------------------------------------------------------------------ Deutsche Bank on Monday upgraded a trio of dry bulk carriers, expecting near-term fundamentals to drive continued upside in fourth-quarter day rates. Genco Shipping & Trading and Euroseas Ltd were both raised to "buy" from "hold," while Eagle Bulk Shipping was lifted to "hold" from "sell." "Day rate upside could continue through the first quarter of 2010 or beyond, as several factors, including increasing port congestion, the reemergence of Europe and Japan into the iron ore market and seasonal coal and grain trades likely keep the near-term supply/demand dynamic tight," the firm wrote to clients. For details, see Reuters Messaging: [e-mail] 1043 EST 16Nov2009-RF Micro rises after free cash flow outlook ------------------------------------------------------------------------------ Shares of RF Micro Devices rose on Monday, after the company said it expects its 2010 free cash flow to top its prior forecast. The company also said it had completed all previously planned restructuring activities. For details, see The stock was up 3.5 percent to $4.48. Reuters Messaging: [e-mail]; Editing by Kenneth Barry 1021 EST 16Nov2009-Motorola to buy BitBand for undisclosed amount ------------------------------------------------------------------------------ Motorola Inc said on Monday it would buy privately held BitBand for an undisclosed amount. The company expects the deal to close in the current quarter. BitBand provides Internet-based television technology to 60 operators in countries such as Holland, Italy and Russia. For details, see Shares of Motorola edged 0.1 percent lower to $8.77. Reuters Messaging: [e-mail]; Editing by Kenneth Barry 1017 ET 16Nove2009-American Dairy hammered as revenue outlook cut ------------------------------------------------------------------------------ Shares of American Dairy Inc are the biggest percentage decliner on the New York Stock Exchange, down 21.7 percent at $25.44. American Dairy, one of the leading producers and distributors of infant formula, milk powder and soybean, rice and walnut products in China, slashed its full-year revenue view. For more please double click Reuters Messaging rm://[e-mail] 1007 ET 16Nov2009-Lowe's rises after Q3 results, outlook ------------------------------------------------------------------------------ Shares of Lowe's Cos Inc rose in early trading on Monday, after the company reported its third-quarter results. While the home improvement retailer posted a third-quarter profit that missed expectations by a penny, it also gave a fourth-quarter profit view that could beat expectations. Lowe's also said that it was starting to see signs of improvement in some of the hardest-hit housing markets. For details, see The stock gained 1 percent to $22.06 while peer company Home Depot Inc , a Dow component, gained 2.2 percent to $27.93. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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