July 21, 2008

SHORT RHHBY ( ROCHE), SHORT AMLN (AMYLIN)

Roche’s acquisition of DNA ( Genentech ) shows change of the company’s long practiced successful strategy by the new CEO. This indicates lack of confidence in the prior strategy. The new strategy is in reality integration of autonomous subsidiaries, although Roche does not characterize this way.

We believe there will be a culture shock in the entire organization as we believe there are likely to be more changes to the existing strategies. New strategies may work out in the long run, but will hurt performance in the mid term.

We recommend slowly building short positions in the range of $88 to $110 with bulk of the position to be entered at the high end of the range.… Please click here or the title below to read more.

July 21, 2008

SHORT VMW ( VMWARE )

Traders still have not caught up to slowing growth at VMW. We believe that the earnings report tomorrow will make it obvious that VMW is no longer a hyper growth story.

Add to short positions on up spikes over $ 38. Add aggressively if the stock spikes to mid forties prior to earnings.

Cover part of the positions in after hours if we are right. We suggest covering 10% of the position under 35, additional 20% under 31 and 20% under 26.

… Please click here or the title below to read more.

July 21, 2008

SHORT SNDK ( SANDISK )

Wall street is underestimating the price pressures in flash memories and overestimating the demand. Further our proprietary indicators show that aggressive money is accumulating Sandisk. These bulls will be trapped and rapidly exit their positions after the earnings report.

Build short positions in the $18 to $ 22 band. Cover in the $12 to $14 range after the earnings.

… Please click here or the title below to read more.

July 21, 2008