Myrna Cook was treated for a broken leg and other injuries Thursday. The 67-year-old from Paulding says she almost struck cars and pedestrians.

A police report doesn’t indicate how fast her car went, and police did not return a call for comment Saturday. Three spokesmen for Toyota Motor Corp., Lexus’s maker, and a National Highway Traffic Safety Administration spokeswoman did not return calls.

Toyota has issued recalls related to acceleration, braking and floor mats that could cause gas pedals to stick. Cook’s car was the subject of a floor mat recall.

The implosion of Lehman Brothers Holdings Inc. into the biggest bankruptcy in U.S. history in September 2008 precipitated the financial meltdown that plunged the economy into the most severe recession since the 1930s. How did it happen?

After saddling itself with tens of billions of troubled assets that couldn’t easily be sold, Lehman masked its debt and perilous financial condition by using the accounting artifice, an examiner appointed by the bankruptcy court found in a 2,200-page report on a yearlong investigation.

The examiner, Anton Valukas, discovered that Lehman put together complex transactions that allowed the firm to sell "toxic," mostly mortgage, securities at the end of a quarter – wiping them off its balance sheet when regulators and shareholders were examining it – and then to quickly buy them back. Thus, the "Repo," meaning repurchase.

"It’s a very damaging report and certainly is something that is going to be carefully scrutinized by federal prosecutors," said Robert Mintz, a former Justice Department prosecutor who is a private defense attorney.

Now, thanks to the work by Valukas, Repo 105 has entered the pantheon of names of vehicles for accounting chicanery, along with Enron’s Jedi, Chewco and Raptor partnerships and the "Buco Nero" (black hole) offshore account stashed away by the fallen Italian dairy giant Parmalat. In the sagas of those two companies, the role of the accounting firms was central.

Did other companies engulfed by the financial meltdown deploy similar accounting tricks?

"I think what Lehman was doing was way out there and quite misleading, and against the financial reporting and accounting rules," said Lynn Turner, a former chief accountant at the Securities and Exchange Commission. "I don’t think there were many others, if there were others at all, that were doing this. I think the rules Lehman violated are straightforward."

Even members of Lehman’s accounting staff, in e-mails unearthed by the examiner, called the Repo 105 concoctions an "accounting gimmick" and "a lazy way of managing the balance sheet as opposed to legitimately meeting … targets at quarter end."

In the meltdown’s wake, Justice and the SEC launched wide-ranging investigations of companies across the financial services industry, believed to include insurer American International Group Inc. and mortgage giants Fannie Mae and Freddie Mac as well as Lehman. A year and a half after the financial crisis struck, charges haven’t yet come in most of the probes.

It’s daunting to make a case in a complicated white-collar investigation. "These are often incredibly complicated cases," Mintz said. "Prosecutors need strong and unequivocal evidence of wrongdoing."

In the Lehman affair, though, there’s a new road map.

The Justice Department and the SEC "have the benefit of a very substantive and comprehensive investigation," said Peter Haveles, head of the financial services litigation department at law firm Kaye Scholer in New York. "It greatly facilitates the efforts of each of those agencies to evaluate and determine whether to bring charges."

SEC spokesman John Nester declined to comment Friday on the examiner’s report.

Valukas’s report doesn’t reach a conclusion on whether executives violated securities laws. It does say that the executives’ decision not to disclose the effects of its business judgments "does give rise to colorable claims against the senior officers who oversaw and certified misleading financial statements."

Colorable claims means there appears to be sufficient evidence to support the awarding of civil damages in a trial.

The executives named by the report include former CEO Richard Fuld and three chief financial officers. Fuld has denied knowing what the transactions were or the accounting for them.

The report says there also are colorable claims against the outside auditors, Ernst & Young, for "its failure to question and challenge improper or inadequate disclosures" in Lehman’s financial statements.

Mintz said it’s significant that Ernst & Young, according to the examiner, failed to inform the audit committee of Lehman’s board of directors of allegations by an Ernst & Young senior vice president of improper accounting at a meeting on June 13, 2008.

"Ernst & Young took no steps to question or challenge the non-disclosure by Lehman of its use of $50 billion of temporary, off-balance sheet transactions," the report says.

In a statement, Ernst & Young says that Lehman thorougly investigated the executive’s allegations. In July 2008, Lehman’s management reported to the audit committee "and concluded the allegations were unfounded," E&Y spokesman Charlie Perkins said in a statement. "We never concluded our review of the matter, because Lehman went into bankruptcy before we completed our audit."

"Our last audit of the company was for the fiscal year ending Nov. 30, 2007," he said. "Our opinion indicated that Lehman’s financial statements for that year were fairly presented in accordance with generally accepted accounting principles and we remain of that view."

The retreat announced Friday settles a lawsuit alleging Netflix’s plans to release millions of movie-rental records that could have illegally exposed sensitive information about its subscribers’ tastes and lifestyles.

The Federal Trade Commission also had raised questions about the company’s ability to protect customers’ privacy, Netflix disclosed Friday.

FTC spokeswoman Claudia Bourne Farrell declined to comment.

Netflix intended to release the movie records without any names or other personal information attached to the data, but critics contended that the protections wouldn’t be enough to guarantee anonymity.

Those arguments were supported by two University of Texas researchers who said they were able to sift through data that Netflix released in its first movie-picking contest to identify certain people who rated movies.

The class-action lawsuit filed in a San Jose federal court had also alleged Netflix’s first contest, which ran from October 2006 through August 2009, had violated a federal law prohibiting video rental firms from publicly sharing their customers’ movie preferences.

Netflix released the data about its subscribers’ movie ratings in an effort to improve its DVD-recommendation system by at least 10 percent. The offer of a $1 million prize attracted more than 51,000 contestants and generated a steady stream of free publicity for the company, based in Los Gatos.

A seven-member group of researchers, scientists and engineers prevailed in the competition and picked up their award at a September news conference where Netflix promised another contest that would help it do an even better job of recommending DVDs to its 12.3 million subscribers.

Netflix canceled the contest without every quantifying what the follow-up prize would be.

The company still hopes to work with researchers on ways to do a better job of identifying movies that people would enjoy watching, Neil Hunt, Netflix’s chief product officer, wrote in a Friday blog posting.

There’s nothing in the lawsuit settlement preventing Netflix from turning to outsiders for help in developing better technology as long as there are adequate safeguards on privacy, said Scott Kamber, a New York attorney who filed the class-action complaint.

Motorola revealed Friday in a regulatory filing that Jha received a 2009 salary of $905,769 in 2009, a bonus of $1.2 million and restricted stock worth $1.334 million. The bonus was guaranteed by his employment contract.

Jha and co-CEO Greg Brown both declined their bonuses for 2008, in recognition of the company’s struggles and job cuts, but took them for 2009. They voluntarily cut their 2009 salaries by 25 percent.

Motorola recruited Jha in 2008 as part of a plan to turn around the money-losing cell phone division. The first tangible fruits of his tenure turned up in Verizon Wireless and T-Mobile USA stores last fall: a family of phones, including the Droid, that run Google Inc.’s Android software.

Jha’s total 2008 pay package was $104.4 million, making him the second-highest paid executive in the country that year, according to calculations by The Associated Press. Only Chesapeake Energy CEO Aubrey McClendon earned more, at $112.5 million.

However, nearly all of Jha’s 2008 pay was in options, and for him to profit from them, Motorola’s stock price has to be above $9.82. The stock started diving soon after he was hired, going below $3 last March. The stock staged a strong recovery last summer, fueled in part by hopes for the new phones, and came tantalizingly close to the exercise price last September. The stock has since retreated, and closed Friday at $7.01.

Brown, who heads the part of the company that makes things like police radios and cable set-top boxes, earned $8.46 million in 2009, down from $24.2 million in 2008, a figure that was also inflated by stock and option awards.

His salary was the same as Jha’s, and his bonus was $836,931. He received $6.4 million in stock and options.

Brown received $359,708 in perks, including personal use of the company aircraft, use of a car and driver, and a home alarm system. Jha received $323,366 for similar perks.

The Associated Press calculations of total pay include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

Motorola cut nearly 11,000 jobs last year, or 17 percent of the work force, as it hurried to slash costs. It lost $51 million, or 5 cents per share, on revenue of $22 billion. That compares to a 2008 loss of $4.2 billion, or $1.87 per share, as it took big charges to account for the falling value of the cell phone business. Revenue in 2008 was $30.1 billion.

A lawyer for Laurence Gluck confirmed Friday that Wells Fargo, acting as a trustee for bond holders, won the auction for Riverton Houses with its own credit bid of $125 million. Wells Fargo topped a cash bid of $120 million.

Alex Guggenheim, senior vice president for CWCapital Asset Management, the special servicer acting on behalf of the trustee, declined to comment on plans for the property.

But tenants and activists were hoping the bank assumed control of the property, rather than go to an investor looking to make a profit.

"Our goal is to get Riverton into the hands of someone responsible who cares about long-term affordability, who isn’t trying to displace people," said Dina Levy, director of organizing and policy for the Urban Homesteading Assistance Board.

Gluck’s Stellar Management purchased Riverton Houses in 2005 for $130 million. A year later, the company refinanced with a $25 million loan and $225 million mortgage. But by September of last year, the property was worth only $108 million, according to one analyst estimate.

State Supreme Court Justice Richard Braun ordered the foreclosure sale of the gated community and its 1,230 apartments last month.

Riverton was built in the 1940s; notable residents have included jazz pianist Billy Taylor; former mayor David N. Dinkins and a former Motown Records vice president Suzanne de Passe.

The complex is one of a few massive affordable apartment communities to face difficulties amid the housing downturn.

The owners of the largest of the city’s affordable-housing complexes, Stuyvesant Town and Peter Cooper Village recently gave up the property when they could no longer make payments on the $5.4 billion purchase.

Like those owners, Stellar Management had banked on converting rent-regulated units to market prices. But the process was slowed because of reluctant tenants and local laws that prevented the company from forcing them out or raising their rents by more than a small amount each year.

Stellar did not return repeated calls for comment.

Harold Shultz, a senior fellow at Citizens Housing and Planning Council, is concerned that whoever ultimately purchases Riverton Houses will also default, noting that the $120 million bid was higher than the appraised value. Wells Fargo may be banking on getting more than that for the property, he said.

Shultz said if Riverton "gets into the wrong hands," the homes could deteriorate, resulting in a potential increase in crime and a decrease in property values for surrounding buildings. Financially-strapped landlords could stop making repairs.

But Robert Knakal, chairman of Massey Knakal Realty Services, said there is no correlation between a building with too much debt and the risk to tenants. He points out that there are buildings with no mortgage that are not kept up well.

Cynthia Allen, president of the Riverton Tenants Association, said she is hoping to work with CWCapital and Wells Fargo, if and when the property is sold.

"Someone who is looking to preserve affordable housing is the best thing for us," she said of the next owner. "We don’t want to find ourselves in same situation we were in with Larry Gluck."

Keith E. Wandell received a base salary of $650,025 from his start date of May 1 through the end of 2009, according to proxy a filing with the Securities and Exchange Commission. He received a bonus of $780,030 and stock and option awards valued at $4.9 million at the time they were issued.

He also received other compensation worth $22,515, which includes a cash payment of $19,733 instead of perquisites.

Wandell, 60, replaced James L. Ziemer, who retired last year after 40 years with Harley-Davidson and four years as its CEO. Before taking over Harley, Wandell was chief operating officer of the car battery and building ventilation systems maker Johnson Controls Inc.

During his final four months as CEO, Ziemer received a pay package valued at $2.9 million. That includes a base salary of $455,144, a bonus of the same amount and stock and options valued at $1.9 million when they were granted.

He received other compensation worth $44,221, including $14,800 in cash instead of perks and $22,521 in contributions to a deferred compensation plan.

The Milwaukee-based motorcycle maker has hit hard times recently as consumers put off buying its high-end bikes. The company ended the fourth quarter with a loss $218.7 million, its first quarterly loss in 16 years.

The company has been laying off workers, closed factories and shuttered or sold unwanted brands.

The AP’s total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

The company provides diagnostic services and makes research products and medical tools.

For the three months that ended Jan. 31, the company lost $10.3 million, or 27 cents per share, compared with a loss of $7.7 million, or 20 cents per share, a year ago. Revenue rose 11 percent to $23.2 million from $20.9 million.

"The fiscal second quarter reflected another quarter of improved operating results, excluding unusually high proxy related costs and a one-time payment to a former officer to settle litigation and the related legal costs," said President Barry Weiner, in a statement.

The company’s gross profit margin rose to 47 percent from 38 percent.

Revenue from tests and other products rose 13 percent to $10.8 million while revenue from clinical lab services rose 11 percent to $10.6 million. Royalties and license fee revenue fell 3 percent to $1.8 million.

Enzo shares rose 8 cents to close at $6.23.

The dividend is payable on April 9 to stockholders of record on March 25, the company said Thursday.

Shares dipped 10 cents to $50.14.

The Las Vegas-based company said Friday in a regulatory filing that it believes it and co-owner Dubai World owe far less than that.

MGM Mirage plans to pursue offsets against the claim because of problems with the Harmon Hotel. The tower was delayed and shortened because county officials said reinforcing steel wasn’t spaced at intervals to support it as designed.

Primary general contractor Perini Building Co. is not named in the filing.

The complex of resorts, retail and a casino opened in December.

NYSE:

Whirlpool Corp., down 53 cents at $86

Whirlpool said that it has won a patent dispute against LG Electronics in a Delaware district court.

Intrepid Potash Inc., up $3.12 at $31.54

Shares of fertilizer makers leaped after Potash Corp. raised its profit forecast, predicting a sharp rebound in potash demand.

Aeropostale Inc., up $1.13 at $28.18

The clothing retailer reported a strong fourth-quarter performance and a better-than-expected 2010 profit guidance.

Clear Channel Outdoor Holdings Inc., up $1.27 at $11.85

The billboard advertising company posted a smaller net loss for the fourth quarter and beat Wall Street’s revenue forecast.

NASDAQ:

Digital River Inc., up $1.83 at $31.14

Digital River got a boost after an analyst suggested the possibility of a deal with McAfee Inc.

Smith & Wesson Holding Corp., down 59 cents at $4.14

The gun maker gave a disappointing revenue outlook amid signs that booming gun sales are returning to more normal levels.

LTX-Credence Corp., up 4 cents at $3.05

The chip testing equipment maker said that it has completed the repurchase of $34.9 million of notes.

Zumiez Inc., down $1.24 at $19.01

The snow and skateboard maker said it expects a first-quarter loss, partly because of costs related to moving its distribution center.

Timothy Cook, 49, will also receive 75,000 restricted stock units scheduled to vest in 2011 and 2012, Apple said in a regulatory filing Friday.

Jobs, 55, famously limits his salary to $1 per year, which leaves Cook the company’s highest-paid executive. In 2009, Cook received an $800,400 salary; $800,000 in nonstock incentive compensation; and about $40,900 in company matches to his retirement account, life insurance premiums and cash for unused vacation days.

The COO also holds 13,741 shares of Apple stock and 500,000 additional restricted stock options that have not yet vested, according to a January filing with the Securities and Exchange Commission.

Cook took the company reins when Jobs, a pancreatic cancer survivor, went on medical leave from January through June 2009.

It was Cook’s second stint leading Apple. Cook, who joined Apple in 1998, ran the Cupertino, Calif.-based company for two months in 2004 while Jobs recovered from surgery for pancreatic cancer. His performance then won him the promotion to chief operating officer in 2005.

Analysts credit Cook with solving problems that Apple was having with inventory management. That has been key to Apple’s ability to amass $25 billion in cash and short-term investments. Many people consider Cook as Jobs’ logical successor.

In the months leading up to Jobs’ medical leave, rumors about his health could send Apple’s stock soaring and sinking as investors worried that Apple would be lost without his vision.

But under Cook’s direction in 2009, the company kept cranking out well-received products including updated laptops with lower entry-level prices and a faster iPhone with many longed-for features. Apple sold more than a million of the new iPhone 3GS during its first three days on the market.

Investors seemed confident in Cook’s abilities. Apple’s shares rose 67 percent to close at $142.44 the Friday before Jobs returned to work last June. Since then, the stock has added another 59 percent to close Friday at $226.60.

AFTER HOURS REGULAR SESSION

XOMA: +7% +0.5%

ARO: +5% +4.2%

PSUN: -10.4% -15.5%

ZUMZ: -9.2% -6.1%

The company received about $203.8 million in net proceeds, which it will use to redeem some of its senior notes due 2013.

Shares fell 1 cent to close at $11.76.

The dividend is payable on April 15 to shareholders of record as of March 26.

-NYSE up 9.6 (0.1%) to 7,362.83.

-DJIA up 12 (0.1%) to 10,625.

-S&P 500 down 0.3 (0.02%) to 1,150.

-Nasdaq down 0.8 (0.03%) to 2,368.

GLOBAL SENTIMENT

Hang Seng down 0.09%

Nikkei up 0.81%

FTSE up 0.08%

UPSIDE MOVERS

(+) LGF rejects Icahn’s partial tender offer.

(+) MON could benefit from prior court rulings.

(+) SCCO gets upgrade.

(+) HANS announces buyback.

(+) PKT beats sales estimate.

(+) ANX says FDA accepts Exelbine name.

(+) RFMD gets positive comments from Cramer on Mad Money.

(+) CTRN beats on Q4, guides for earnings above Street view.

(+) ARO gains after results.

DOWNSIDE MOVERS

(-) AEPI turns lower after results.

(-) NVAX reports wider-than-expected loss.

(-) MWA gets downgrade.

(-) ANN beats with Q4 EPS but sales miss.

(-) CF Agrium terminates offer.

(-) PSUN disappoints with outlook.

MARKET DIRECTION

Stocks close mixed after retail sales data and a measure of sentiment offered a split picture of consumer demand. Financials gave back some of Thursday’s gains.

The Dow Jones Industrial Average manages a slim gain Friday to extend its win streak to four sessions, while the Nasdaq Composite and S&P 500 end just in the red. For the week, the DJIA is up 0.6%; the S&P 500 is up 1%; and the Nasdaq Composite is up 1.8%. Stocks have gained broadly over two weeks.

Crude oil closed down $0.87 at $81.24 a barrel, also falling on sentiment data. The dollar mostly fell against other major currencies, while gold prices fell.

A weaker report on consumer sentiment also held the market from making big moves. The preliminary Reuters/University of Michigan consumer sentiment index for March fell to 72.5 from 73.6 in late February.

Earlier, the Commerce Department said retail sales rose 0.3 percent last month. Analysts had expected sales to drop.

In pre-market action, the stock traded as low as 27. For investors who moved in at the low end of our range, at 27.80, that trade, as measured to the 28.94 day high, is a 4% winner.

Price: 28.16, Change: +1.11, Percent Change: +4.2

At 3 p.m. EST, more than 5,000 out-of-the-money April 35 puts changed hands at the ask price of 25 cents per contract. This options action suggests investors bought these puts, and will make money if BBY shares close lower than $34.75 when the options expire in roughly one month. The April 35 puts are home to current open interest of 1,000 contracts, indicating the action was initiated to open. These puts have dropped five cents so far today, and have an implied volatility of 38% compared to a 30-day historical volatility of 23%.

BBY shares have climbed 69 cents, or nearly 2%, to $40.16 on the day. The stock has sold off around 11% since reaching a high of $45 in December. BBY did not announce any news today to account for the pop-up in the stock, and is scheduled to announce earnings of $1.79 a share on March 25 before the market opens.

In pre-market action, the stock hit a low of 4.81. A buy at the low end of our target, at 4.86, as measured to the day high of 5.14, is 5.8% in the black.

The stock failed to hit our short target, only reaching 5.10 in regular trading and 5.14 in the day session.

Price: 4.83, Change: -0.92, Percent Change: -16

Top Energy Stocks

XOM: -0.58%

CVX: -0.43%

COP: +0.47%

SLB: +0.94%

OXY: -0.20%

Energy shares were mixed in late trading Friday as crude oil futures drifted below $82 a barrel.

Crude oil for April delivery fell $0.86, or 1.1%, to $81.25 a barrel. Oil prices finished virtually unchanged on Thursday and are down 0.4% for the week so far, even as demand forecasts have been raised.

Higher demand forecasts this week have come from OPEC, the U.S. Energy Information Administration and the Paris-based International Energy Agency. Already, China’s demand year-over-year surged 28%. The Asian nation is expected to account for almost a third of global oil demand growth in 2010.

In other energy futures heating oil for April delivery fell $0.03 cent to $2.09 a gallon. Natural gas for April was down $0.02 cents at $4.42 per million British thermal units.

Also Friday, OPEC will maintain current production quotas next week as prices hold above $80 a barrel, Bloomberg reported.

In energy stocks, ConocoPhillips (COP) proposed development plans for the North Sea Eldfisk and Ekofisk South fields offshore Norway, according to Bloomberg News. The development would be valued at as much as $13 billion to prolong their production lives.

ConocoPhillips shares were up 0.47%, or $0.24, to $51.54 in late Friday trading.

ATP Oil & Gas (ATPG) says its major deepwater Gulf of Mexico development, the Telemark Hub, is on schedule to commence production during March 2010 from the Atwater Valley 63 # 4 well.

ATP shares were up $1.93, or 11.07%, to $19.36.

Exxon Mobil Corp. (XOM) reported flaring at its Beaumont, Texas refinery due to "operating conditions." The oil giant’s community information line had a recorded message on the Southeast Texas Alerting Network that stated that the Beaumont facility requires flaring "at this time." No further information has been provided by the company.

Exxon Mobile shares were down $0.39, or 0.59%, to $66.82.

WMT: +0.02%

MCD: +0.64%

DIS: -0.65%

CVS: +0.12%

TWX: -0.46%

Consumer stocks were mixed in late Friday trading as worries about declining consumer sentiment gripped the sector.

According to Thomson Reuters/University of Michigan’s Surveys of Consumers, the preliminary March consumer sentiment index was 72.5, down from 73.6 where it ended in February, and below the 73.6 forecast by analysts polled by Reuters.

Shares of gun maker Smith & Wesson Holding Corp. (SWHC) were down in late Friday trading after its sales projection for the fourth quarter failed to meet Wall Street’s expectations.

After market close Thursday, the company reported a profit of $2.4 million, or $0.02 a share excluding one time items from acquiring Universal Safety Response, against $2.4 million, or 5 cents a share, in the same quarter a year ago. Revenue, meanwhile, rose to $89.4 million from $83.7 million on year.

Analysts surveyed by FactSet Research on average expected a quarterly profit of a penny a share with revenue reaching $92.6 million.

Smith & Wesson shares were off 11.42%, or $0.54, to $4.19.

Shares of Ann Taylor Stores (ANN) were down after it reported adjusted Q4 EPS of $0.05 vs a loss of $1.03 a year earlier and topping the Thomson Reuters mean analyst estimate for a loss of $0.01. Sales were $469.1 million, compared with net sales of $483.4 million a year earlier. The Street looked for $472.3 million. Q4 same-store sales down 0.6%.

The company guides for Q1 sales of $445 million. The Street is at $443.7 million. Ann Taylor shares were down 2.06%, or $0.40, to $19.05.

Ann Taylor shares were off 1.23%, or $0.23, to $19.21.

In other consumer news, Lionsgate Entertainment (LGF) says its Board of Directors, in consultation with its financial and legal advisors, has determined, by unanimous vote of the directors present, that the unsolicited partial tender offer from Carl Icahn for $6 per share is financially inadequate.

Icahn already holds a stake of about 18.9% stake and, offered to buy another 13.2 million shares. Such a deal would increase his stake to about 30 percent and make him the largest shareholder in the company.

Lionsgate shares were up 1.30%, or $0.07, to $5.74.

Crude oil closed down $0.87 at $81.24 a barrel, also falling on sentiment data. The dollar mostly fell against other major currencies, while gold prices fell.

At last check, the DJIA is down 8 points, or 0.1%, at 10,604, after ranging between 10,595 and 10,645.

The S&P 500 is down 2 points, or 0.2%, at 1,148, after ranging between 1,147 and 1,153. The broad average hit a 17-month closing high on Thursday.

The Nasdaq Composite is down 4 points, or 0.2%, at 2,365, after ranging between 2,358 and 2,376.

A weaker report on consumer sentiment also held the market from making big moves. The preliminary Reuters/University of Michigan consumer sentiment index for March fell to 72.5 from 73.6 in late February.

Earlier, the Commerce Department said retail sales rose 0.3 percent last month. Analysts had expected sales to drop.

The company’s stock slid 20 cents, or 3.7 percent, to $5.30 in afternoon trading.

After the market closed Thursday, QAD reported fiscal fourth-quarter net income of $685,000, or 2 cents per share, for the quarter ended Jan. 31. That compares with a loss of $19.7 million, or 64 cents per share, in the same quarter a year ago. Part of that jump came because of a $14.4 million charge the company took in the year-ago quarter to account for the declining value of its assets.

Total operating expenses dropped nearly 41 percent to $29.7 million.

But sales fell 10 percent to $52.7 million. Licensing and services revenue slipped, offset partially by a gain in maintenance revenue.

The company also said it expects revenue for the current quarter of about $54 million, compared with $55.2 million in the prior-year quarter. It expects a profit of 3 cents per share, reversing last year’s loss.

For the full year, QAD earned $1.3 million, or 4 cents per share, compared with a loss of $23.7 million, or 77 cents per share, the year before. Revenue slid 18 percent to $215.2 million.

Top Financial Stocks

JPM: -0.02%

BAC: -1.42%

WFC: -0.20%

C: -4.31%

USB: +1.30%

Financial shares gave up early gains Friday as the sector traded mostly lower in late Friday trading as consumer sentiment weighed on stocks across the board.

The Dow Jones U.S. Financials Index was down 1.20, or 0.42%, to 286.64.

Citigroup (C) fell for the session after being one of the market’s best-performing stocks over the past month. Citigroup shares were down 4.31%, or $0.18, to trade at $4. Shares of Bank of America Corp (BAC) were down $0.25, or $1.46, to $16.87.

Also Friday, a court-ordered report revealed that JPMorgan Chase & Co. (JPM) and Citigroup helped cause the failure of Lehman Brothers Holdings Inc. by demanding more collateral and changing guarantee agreements. JPMorgan shares were up 0.02%, or $0.01.

Led by a big gain in electronics, U.S. retail sales increased a seasonally adjusted 0.3% in February, despite three major snow storms in the East, the Commerce Department estimated Friday. Sales have risen in four of the past five months, and were up 3.9% compared with a year earlier.

However, according to Thomson Reuters/University of Michigan’s Surveys of Consumers, the preliminary March consumer sentiment index was 72.5, down from 73.6 where it ended in February, and below the 73.6 forecast by analysts polled by Reuters.

Business inventories were unchanged, a weaker reading than the 0.2% gain that analysts had expected.

Top Technology Stocks

MSFT: +0.14%

AAPL: +0.55%

IBM: +0.09%

CSCO: -0.39%

GOOG: -0.06%

Technology shares remained mixed in late Friday trading as concerns about U.S. consumer sentiment held down gains.

The Dow Jones U.S. Technology Index was down 0.05, or 0.01%, to 599.07.

There were some winners in Friday tech share trading. Apple Inc. (APPL) opened higher and has steadily held gains, up 0.56%, on a lackluster trading day that also marks the commencement of pre-ordering for its new iPad device.

According to calculations compiled by posters to Investor Village’s AAP Sanity Board the company took orders for 50,000 of the tablet computers in the first two and a half hours after its online Apple store began taking the orders.

National Semiconductor (NSM) is down fractionally by 0.03% to $14.33 after posting Q3 sales of $362 million, better than the analyst mean of $349 million on Thomson Reuters. Earnings were $0.22, including items, vs. expectations of $0.18 per share, generally an ex-items number. For Q4, the company is guiding for sales of $375 to $390 million, vs. the Street view of $361 million

Nokia (NOK) said it expects industry mobile device volumes to be up approximately 10% in 2010, compared to 2009. Nokia targets its mobile device volume market share to be flat in 2010, compared to 2009; and Nokia targets to increase its mobile device value market share slightly in 2010, compared to 2009.

Nokia shares were up $0.32, or 2.21%, to $14.81.

A European-led consortium pulled out of bidding this week for the $35 billion contract, saying the Pentagon was favoring rival American bidder Boeing.

"This is not the right way for the United States to treat its European allies," French President Nicolas Sarkozy said.

"If they want to be spearheading the fight against protectionism, they shouldn’t be setting the wrong example of protectionism," he said. "In life there is what you say and then there is what you do."

British Prime Minister Gordon Brown said he was disappointed with the situation.

"We believe in free trade, we believe in open markets, we believe in open competition," he said.

The withdrawal of a bid by EADS, the parent company of Airbus, and Northrop Grumman, leaves Chicago-based Boeing as the only bidder for the 179-tanker order.

The EADS-led consortium was awarded a contract for the tanker fleet in 2008, but Boeing protested and the deal was annulled later that year.

The European Union has warned Washington about possible protectionism, saying it "would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract."

Sarkozy and Brown gave their news conference after holding talks at the prime minister’s residence that focused largely on the economy.

Both leaders suggested a compromise was possible next week on the thorny issue of hedge fund and private equity fund regulation. The U.S. and Britain, which is home to most European hedge funds, are wary of proposed EU reforms to regulate the industry, fearing they could stifle growth and harm business.

Together with the financial industry, they have criticized the proposed reforms as too stringent, while socialist European lawmakers – eager to crack down on risky trading – see them as too lenient.

"I believe, as Nicolas does, that we can reach a solution over the next few days on these issues," Brown said.

The European Commission recommended last year that hedge funds and private equity funds should register in Europe and inform regulators about trades and debts to prove that they don’t pose a risk to the financial system.

Funds based outside Europe would have to show that they face similar oversight at home and cooperate with European tax authorities. The reforms were intended to pressure the U.S. to step up supervision.

British Treasury chief Alistair Darling has suggested that hedge funds authorized by regulators to operate in any one EU country should then be allowed a "passport" to operate across the bloc.

Sarkozy later held a meeting with Britain’s main opposition leader, David Cameron, who is hoping to oust Brown at a national election to be held by June 3. Cameron’s office said the men pledged to maintain close ties if the Conservative Party leader becomes British prime minister.

Top Health Care Stocks

JNJ: -0.26%

PFE: -1.16%

ABT: -2.41%

MRK: +0.54%

AMGN: +0.01%

Health care shares couldn’t gain ground by late in Friday’s session as the sector seemed to follow a market beset with concerns about consumer sentiment.

The Dow Jones U.S. Health Care Index is down 1.66, or 0.50%, to 329.49.

There was once exception: Merck (MRK). The drug maker broke into positive territory, up near 1%, after a morning of choppy trading on an analyst’s remark that competition from rival brands and generics will continue to cut sales of its blockbuster Vytorin drug.

Merck shares were up 0.60%, or $0.21, to $37.09.

Late Thursday, Pfizer said the cancer drug Sutent did not meet key goals in two late-stage studies focusing on advanced breast cancer. The drug is already sold as a treatment for advanced kidney cancer and gastrointestinal stromal cancer, which affects the stomach.

Pfizer shares were down 1.10%, or $0.19, to $17.10.

Abbott Labs (ABT) is lower after getting cut to "sell" from "hold" at Citigroup, which said the company may face "underlying profitability trouble" this year. Meanwhile, Amgen was started at neutral by Piper Jaffray before trading on Friday.

Abbott shares were down 2.36% to $54.23.

In pre-market trading, the stock hit a low of 14.36. A buy at the low end of our range, 14.40, as measured to the day high of 14.65, is 1.7% in the black.

Price: 14.37, Change: +0.03, Percent Change: +0.2

Gold for April delivery finished down $6.50, or 0.6%, at $1,101.70 an ounce at the New York Mercantile Exchange. For the week, gold fell 2.4%.

Meanwhile crude oil for April delivery fell $0.86, or 1.1%, to $81.25 a barrel. Oil prices finished virtually unchanged on Thursday and are down 0.4% for the week so far, even as demand forecasts have been raised.

Higher demand forecasts this week have come from OPEC, the U.S. Energy Information Administration and the Paris-based International Energy Agency.

Already, China’s demand year-over-year surged 28%. The Asian nation is expected to account for almost a third of global oil demand growth in 2010.

In other energy futures heating oil for April delivery fell $0.03 cent to $2.09 a gallon. Natural gas for April was down $0.02 cents at $4.42 per million British thermal units.

In other metals, silver futures were down 0.93%, or $0.16, to close at $17. Copper futures were down 0.21%, or $0.70, to close at $338.40 a pound.

Earlier in the week, gold contracts had benefited from a weaker dollar and a jump in crude-oil prices. Those gains appeared ready to proceed Friday morning until a report was issued showing weakened consumer sentiment in the U.S.

Also Friday, OPEC will maintain current production quotas next week as prices hold above $80 a barrel, Bloomberg reported.

In energy stocks, ConocoPhillips (COP) proposed development plans for the North Sea Eldfisk and Ekofisk South fields offshore Norway, according to Bloomberg News. The development would be valued at as much as $13 billion to prolong their production lives.

ConocoPhillips shares were up 0.56%, or $0.29, to $51.59 in late Friday trading.

ATP Oil & Gas (ATPG) says its major deepwater Gulf of Mexico development, the Telemark Hub, is on schedule to commence production during March 2010 from the Atwater Valley 63 # 4 well.

ATP shares were up $2.03, or 11.65%, to $19.46.

Exxon Mobil Corp. (XOM) reported flaring at its Beaumont, Texas refinery due

to "operating conditions." The oil giant’s community information line had a

recorded message on the Southeast Texas Alerting Network that stated that the

Beaumont facility requires flaring "at this time." No further information has

been provided by the company.

Exxon Mobile shares were down $0.40, or 0.60%, to $66.81.

Officials say the planned $125 million project at Tesoro Corp.’s Mandan refinery is the most extensive overhaul at the facility since 2003.

The refinery was built in 1954 and produces gasoline, diesel, jet fuel, propane, butane and residual fuel. It also has an ethanol blending facility.

Tesoro acquired the refinery from BP in 2001. The company says the planned overhaul will bring to $250 million the amount it has spent on environmental and production upgrades at the refinery.

At 2:27 p.m. EST, an investor appeared to buy the July 34-40 call spread 6,000 times for a net debit of $2.18 per spread. The options action suggests the lower-strike calls traded for $3.72 per contract, which was closer to the ask at the time of the trade, while the 40-strike calls crossed for the bid price of $1.54 per contract. Investors could make a maximum profit of $3.82 per spread if SNDK shares close higher than $40 at July options expiration. Investors will begin to lose money if SNDK shares drop lower than the breakeven price of $36.18, but this strategy protects against any significant losses as maximum risk is the premium paid, or $2.18 per spread in this case.

For a visual representation of the risk/reward dynamics of this bull call spread, open a free virtual trading account and utilize the trading tools to manage risk.

Implied volatility of the July 34 calls is 47% and the July 40-strike calls have an implied volatility of 45% compared to a 30-day historical volatility of 62%. The lower-strike calls have dropped 25 cents, while the higher-strike calls have dropped 15 cents on the day.

SNDK did not announce any news today, and the company could announce earnings figures sometime around April 21. SNDK shares are currently down 44 cents, or roughly 1.3%, to $33.77.

District Attorney Tony Rackauckas said at a news conference Friday that his office has the right to bring consumer protective action on behalf of Orange County residents.

"We need to make sure that when Toyota says ‘Oh, what a feeling’ and ‘Moving forward’ that they are talking about great cars," Rackauckas said, referring to the company’s slogans.

Toyota spokesman Mike Michels said he had no comment because the company hasn’t been served with the lawsuit.

Orange County’s lawsuit accuses Toyota of using deceptive business practices to become the world’s top automaker. The suit seeks civil penalties of $2,500 per violation under the Unfair Business Practices Act, along with the recovery of attorney fees and investigative costs.

"We demand to know: Did Toyota, in their relentless pursuit to become the No. 1 carmaker in the United States, put profits over people?" Rackauckas asked.

The district attorney’s office hired a private law firm with expertise in consumer safety liability cases to help with the case.

Toyota has recalled more than 6 million vehicles in the United States because of acceleration problems in multiple models and braking issues in the Prius hybrid. Regulators have linked 52 deaths to crashes allegedly caused by accelerator problems.

At least 89 class-action lawsuits have been filed against the Japanese automaker, which could cost the company $3 billion or more.

Toyota’s U.S. shares fell 12 cents to $76.82 in Friday afternoon trading.

According to calculations compiled by posters to Investor Village’s AAPL Sanity Board the company took orders for 50,000 of the tablet computers in the first two and a half hours after its online Apple store began taking the orders.

Victor Castroll, an analyst with Valcent Financial Group and an AAPL Sanity member who, with the blogger-analyst who calls himself deagol, are monitoring the sales. Earlier Silicon Alley Insider estimated Apple was selling 20,000 devices an hour.

Price: 226.70 , Change: +1.20, Percent Change: +0.53

In this new series, we will use “Stock Screening” software (available to all users with a virtual trading account) to produce a list of potentially actionable stock names using an ever-changing variety of indicators and filters.  If there is a certain combination of indicators you’d like to see, send us feedback (or drop me a line at bmoon@onn.tv) and we will try to accommodate your request.

Today, we are looking for potential bullish opportunities – stocks we expect to move higher in the short- or intermediate-term – and will create a list of optionable stocks that shares the following characteristics:

• A price change of 12% or greater in the past 10 days
• A market cap of $2 billion or greater
• 10-day average volume greater than the current day’s volume

While these criteria seem rather general, only 21 stocks in the optionable universe match up.  Eliminating one (Sappi) that is trading below $5 per share, and we’re left with even 20.  These stocks are:

• Akamai Technologies Inc. (NASDAQ: AKAM) Note: Akamai is facing an eminent FDA decision on its diabetes drug
• Abercrombie & Fitch Co. (NYSE: ANF)
• Central European Distribution Corp. (NYSE: CEDC)
• Companhia Siderurgica Nacional (NYSE: SID)
• Del Monte Foods Company (NYSE: DLM)
• General Growth Properties, Inc. (NYSE: GGP)
• Host Hotels & Resorts, Inc. (NYSE: HST)
• Las Vegas Sands Corp. (NYSE: LVS)
• Longtop Financials Technologies Limited (NYSE: LFT)
• Novell, Inc. (NASDAQ: NOVL)
• Nuance Communications, Inc. (NASDAQ: NUAN)
• Owens-Illinois, Inc. (NYSE: OI)
• Prudential Public Limited Company (NYSE: PUK)
• PT Indosat Tbk (NYSE: IIT)
• RadioShack Corporation (NYSE: RSH)
• Royal Bank of Scotland Group plc (NYSE: RBS)
• Terex Corporation (NYSE: TEX)
• Titanium Metals Corporation (NYSE: TIE)
• Valmont Industries, Inc. (NYSE: VMI)
• Williams- Sonoma, Inc. (NYSE: WSM)

Sometimes finding your next trade is like finding a needle in a haystack. We hope this list will provide you with a jumping-off point to do some of your own research . I hope you’ll let us know how you like it, and what we can improve.

National Western Life reported consolidated net earnings of $12.7 million, or $3.59 per share, for the three months ended Dec. 31, compared with a profit of $10.9 million, or $3.06 per share, in the same quarter a year ago.

The latest quarter’s results included $29,000 in after-tax investment losses, compared with a far-larger investment loss of $2.8 million in the year-ago quarter.

Total revenue surged 38 percent to $153.4 million from $111.1 million, after the company recorded a nearly $21.6 million gain on index options, compared with a nearly $12.9 million index option loss in the same quarter a year ago.

For the full year, National Western Life recorded consolidated net earnings of $45.5 million, or $12.87 per share, up 35 percent from a profit of $33.6 million, or $9.48 per share, in 2008. Full-year total revenue rose 38 percent to $568.4 million from nearly $411.1 million.

Happy Friday, option traders!  The bears are trying to assert themselves today, but stocks are fighting to hold the breakeven level.  I’m George Ruhana, CEO for OptionsHouse, in for Steve Claussen with a look at What’s Hot for Friday, March 12th.

Stocks were initially higher this morning but lost momentum around 10 AM, when the University of Michigan’s consumer sentiment index showed an unexpected decline.   Retail sales, on the other hand, ticked 0.3 percent higher in February, topping estimates.  In late-morning trading, the Dow’s up eight points and the S&P 500 and Nasdaq are down by a fraction.  The VIX is continuing its late-week push higher, up over a percent to 18.3 vol.

Now on to the OptionsHouse Hotlist!

The Hotlist is chemically altered today, as eight of the 21 names on the list come from the chemicals sector.  Leading the pack is Potash (NYSE: POT), which has seen almost 85,000 contracts change hands.  Last night, the company boosted its first-quarter guidance well above estimates, reflecting a sharp rebound in demand for potash itself.  Two of the most-active strikes today are the March 125 and 135 calls, which have each seen 10,000 contracts change hands.  Much of this volume looks like bull call spreads, where the investor is buying the 125 call and selling the 135.  The maximum potential profit for a long call spread is limited to the difference in strikes minus the net debit, while the maximum loss is limited to 100 percent of the debit paid. Also of note … in the less-liquid January 2012 LEAPS series, a customer appears to have bought the 150-strike calls for $16.25 a piece.   This call buyer can lose 100 percent of the premium paid, but has unlimited upside above the breakeven level of $166.25.  POT shares are currently up six percent at 124.70.

Also hitting the Hotlist today … biotech firm Amylin Pharmaceuticals (NASDAQ: AMLN), which is moving dramatically today on heavy volume.  The stock surged to a new annual high at the open but is now down more than four percent after the release of an FDA inspection report suggested the company’s Ohio plant had inappropriate quality control.  Meanwhile, in bigger news, FDA officials are expected to rule today on the company’s long-acting diabetes drug.  Options players are active today, trading more than 70,000 contracts on the name. The March and April 25-strike calls are especially active today, with around 10,000 contracts trading on each.

And that’s What’s Hot this morning!  I’m George Ruhana for OptionsHouse.

The stock made its move just after mid-day and rose to a session high of $37.20. It continues to trade near the top of its range, up 0.70%

Bernstein Research analyst Tim Anderson said late Thursday that an interim analysis midway in a long study of the controversial drug didn’t find serious safety problems.

But even though the safety monitoring board decided the study, called IMPROVE-IT, should continue, it might still show Vytorin works no better than a much-cheaper generic version of Zocor, he noted.

Price: 37.10 , Change: +0.22 , Percent Change: +0.60

Uneven figures on retail sales and consumer confidence gave investors little new insight into the economy.

The reports weren’t enough to propel the market higher a day after the Standard & Poor’s 500 index closed at its highest level in 17 months. That index slipped Friday, but the Dow Jones industrial average tacked on nearly 13 points.

Major stock indicators climbed for the week after investors grew more upbeat about the health of banks. Shares of Citigroup Inc. rose 13.4 percent for the week.

Stocks had been modestly higher at the start of trading Friday after a surprising increase in February retail sales. The Commerce Department said retail sales rose 0.3 percent last month. Analysts had expected a drop.

A weaker report on consumer sentiment disappointed traders. The preliminary Reuters/University of Michigan consumer sentiment index for March fell to 72.5 from 73.6 in late February.

Investors also were displeased with the Commerce Department’s report that inventories were unchanged. Economists had forecast an increase. Analysts are hoping that businesses will restock store shelves on a consistent basis, which would be a positive signal for the economy.

The reports come as investors look for more signs about the economy’s direction. The market bounced higher in the prior week after the Labor Department said employers cut fewer jobs in February than economists had expected. But trading has been more subdued since.

Neil Menard, principal at Steben & Co. in Rockville, Md., said the market could continue to make incremental gains until investors have a better sense about the job market. He sees little confidence behind stocks’ advance the past two weeks.

"There is a lack of conviction in the markets," he said. "Everyone is kind of in wait-and-see mode."

The Dow rose 12.85, or 0.1 percent, to 10,624.69. The broader S&P 500 index slipped 0.25, or less than 0.1 percent, to 1,149.99. The Nasdaq composite index fell 0.80, or less than 0.1 percent, to 2,367.66. It stands at an 18-month high.

For the week, the Dow rose 0.6 percent, the S&P 500 index rose 1 percent and the technology-dominated Nasdaq climbed 1.8 percent.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.70 percent from 3.73 percent late Thursday.

Crude oil fell 87 cents to settle at $81.24 per barrel on the New York Mercantile Exchange.

The dollar mostly fell against other major currencies, while gold prices fell.

Stocks were mixed Monday after insurer American International Group Inc. sold one of its big foreign divisions to MetLife Inc. for $15.5 billion. The market rose Tuesday and Wednesday and posted bigger gains Thursday after Citigroup’s CEO said the bank was moving toward "sustained profitability." Citigroup was the hardest hit bank during the financial crisis.

The coming week could provide important signals about the economy. The Federal Reserve’s interest rate committee meets Tuesday. Although policymakers are almost certain to leave their target interest rate at a record low of essentially zero, traders will be looking at the policy statement that follows the meeting. Even the slightest shift in the Fed’s language on how long interest rates will remain unchanged or on its assessment of the economy likely would move the market. Reports are also due on inflation and regional manufacturing.

Christian Hviid, chief market strategist at Genworth Financial Asset Management in Encino, Calif., said the market’s slow ascent during the week was good but that stocks are still up too much in the past month.

"It’s better that we move slowly upward than violently up and then see a lot of volatility," he said.

The S&P 500 index is up 8.8 percent from its recent low on Feb. 8. A gain of that size might typically come in a year.

Hviid said the trading volume and activity that comes with next week’s expiration of options contracts could shake up the market.

Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where consolidated volume came to 4.9 billion shares compared with 4.3 billion Thursday.

The Russell 2000 index of smaller companies fell 0.63, or 0.1 percent, to 676.59.

Britain’s FTSE 100 rose 0.2 percent, Germany’s DAX index rose 0.3 percent, and France’s CAC-40 fell less than 0.1 percent. Japan’s Nikkei stock average rose 0.8 percent.

___

Augstums reported from Charlotte, N.C.

___

The Dow Jones industrial average closed the week up 58.49 points, or 0.6 percent, at 10,624.69. The Standard & Poor’s 500 index rose 11.29, or 1 percent, to 1,149.99. The Nasdaq composite index rose 41.31, or 1.8 percent, to 2,367.66.

The Russell 2000 index, which tracks the performance of small company stocks, rose 10.57, or 1.6 percent, for the week to 676.59.

The Dow Jones U.S. Total Stock Market Index – which measures nearly all U.S.-based companies – ended at 11,856.51, up 129.69, or 1.1 percent.

DELL Covered Call Trade Details:

DELL is currently trading at $14.25, down roughly 0.3% today.

Covered Call –

• Sell the March 15 call (out-of-the-money) for $0.50 per contract (or better).
• Buy 100 shares of stock for every sold call (current price for 100 shares is $1,425).

A free virtual trading account can help you visualize the maximum profit, maximum loss, and breakeven level for this covered call trade.

Profit/Loss Details:

Maximum potential profit:, if assigned, is $1.25. Return on risk is approximately 9%.

Maximum risk: $13.75 (the stock price at the time of purchase minus the credit).

Breakeven: $13.75 (the stock price at the time of purchase minus the credit).

A covered call has essentially three possibilities:

1. The stock can stay flat, leaving the out-of-the-money call to expire worthless. The investor keeps the premium and gains nothing on the purchased shares.

 

2. The stock can decline, at which point the option again expires worthless and the investor keeps the premium but takes a loss on the stock. In scenarios one and two, the covered call outperforms the stock side of the trade.

 

3. If DELL remains above the 15-strike between now and March expiration (in six trading days), the option will likely be exercised, capping the stock’s upside.

For more on DELL:

Selling long-term puts in Dell (NASDAQ: DELL)

Early Glance: Computer companies

Remember, trading Ideas are generated by the ONN Idea Generating Platform as a starting point for people to begin their own research. Trading ideas are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions, but we hope that some of these ideas will give you a starting point as you look for strategies to employ.

KKR originally sought a public listing in the U.S. in July 2007, hoping to raise up to $1.25 billion, after competitor Blackstone Group LP raised $4.1 billion in an initial public offering. KKR shelved that plan due to the financial crisis.

Instead, KKR merged with its European arm, now known as KKR Guernsey, and the combined company traded on the Euronext Amsterdam beginning in October 2009. When KKR begins trading on the NYSE, KKR Guernsey will be dissolved and cease to trade in Amsterdam.

KKR said in a filing with the Securities and Exchange Commission that it will register 204.9 million common units, worth about $2.21 billion, and that it will trade in the U.S. under the symbol "KKR."

Guernsey stockholders will swap their shares for units in the U.S.-listed company. They will hold a 30 percent stake in the public KKR trading on the NYSE. At the end of 2009, there were about 2,000 KKR Guernsey unit holders.

The remaining 70 percent of the company will be owned by the senior executives who currently have a stake in the company. They own about 478.1 million common units, KKR said.

KKR’s plan sidesteps a public stock offering – at least for now – and allows it to avoid an ugly U.S. IPO market. Its move to the NYSE comes as Blackstone’s stock price languishes more than 50 percent below where it debuted, and companies trying to raise money through IPOs have had a tough time capturing investor interest.

Listing the shares in New York, even without raising capital, has a number of benefits. If the shares perform well, those market gains could help fund takeovers. Also, an NYSE listing would make it easier for founders Henry Kravis and George Roberts, who together hold a majority of shares with voting rights, to pare down their stakes because it’s much easier to buy and sell shares on the NYSE than on Amsterdam’s smaller exchange, said Steven Kaplan, a finance professor at the University of Chicago’s business school. Moreover, it’s more convenient for the company to pay employees in its principal office in New York with U.S.-listed shares, he said.

KKR buys companies and then sells them to the public or other investors. In November, it took discount retailer Dollar General Corp. public, although it retained a majority stake. In January, it acquired British pet retailer Pets At Home. Its holdings include retailer Toys ‘R’ Us Inc., hospital operator HCA Inc., mattress maker Sealy Corp. and software company SunGard Data Systems Inc.

At the end of 2009, KKR had assets under management of $52.2 billion, half of which was invested in North America.

A KKR spokesperson declined to say when shares could start trading in New York.

(This version corrects Blackstone IPO proceeds)

Shares fell $1.41, or 2.5 percent, to $54.13 in afternoon trading. The stock has traded between $41.27 and $56.79 over the last 52 weeks.

In February, the North Chicago, Ill., company completed the $6.2 billion Solvay deal. On Tuesday, Abbott said it will pay about $450 million in cash for Facet Biotech Corp.

Citi analyst Matthew J. Dodds downgraded shares of Abbott to "Sell" from "Hold" and reaffirmed a $52 price target, saying the company "appears to be masking underlying profitability trouble" on the benefits of the Solvay deal.

"The earnings per share lift should trail off in 2011," he said, in a note to investors. "With a thin pipeline, this only increases Abbott’s dependence on Humira."

Humira is the company’s best-selling drug for inflammatory disease.

He said even with the Solvay deal, the company still remains heavily reliant on Humira and sales growth could slow in the U.S. market. The Facet deal helps the company’s product pipeline, he said, but that benefit won’t begin before 2013.

The Facet deal gives Abbott the potential multiple sclerosis drug daclizumab along with potential cancer treatments.

Moody’s Investors Service affirmed its ratings and negative outlook for Abbott on Wednesday and warned of a potential downgrade, citing the company’s decision to buy Facet. The ratings agency said that buyout will likely place additional stress on some of Abbott’s credit metrics. Also, it said cash coverage of debt is much weaker following the closing of the Solvay deal.

Dodd expects earnings per share of $4.18 in 2010. Abbott expects profit between $4.20 and $4.25 per share in 2010.

Analysts polled by Thomson Reuters, on average, expect $4.24 per share in profit.

The FDIC seized Washington Mutual’s flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion. The sale resulted in the two banking companies and the government agency trading lawsuits over roughly $4 billion in disputed deposit accounts.

WaMu attorney Brian Rosen told U.S. Bankruptcy Judge Mary Walrath on Friday that JPMorgan has agreed to turn over the money to Washington Mutual after deducting $172 million as its share of tax refunds received.

In return, JPMorgan will get 70 percent of expected tax refunds resulting from WaMu’s prior operating losses that are valued at about $3 billion, with Washington Mutual getting 30 percent.

WaMu also will get about 40 percent of a second round of operating-loss tax refunds valued at about $2.6 billion, with roughly 60 percent going to the FDIC.

"WMI is confident that this agreement will provide substantial recoveries for the company’s creditors, and that it is consistent with WMI’s efforts over the last 18 months to maximize the value of its bankruptcy estate," the company said in a prepared statement. "WMI is also pleased that this agreement vindicates the positions it took in court, as the company believes that its court positions created the pressure necessary to move this agreement forward."

Shares of WaMu closed down 18 cents, or 47 percent, at 19 cents in over-the-counter trading.

Rosen said documentation of the settlement will be submitted to the court and will be included in a reorganization plan to be filed by March 26, followed by a disclosure statement hearing in early May.

The settlement negated the need for a hearing Friday on WaMu’s request for a judgment that would have forced JPMorgan to surrender the deposits, and on the FDIC’s request that it be allowed to hold the funds pending resolution of related lawsuits.

"I am happy to report that we have a three-way understanding," Rosen told Walrath, adding that the agreement is subject to approval by the governing boards of the FDIC and the two banking companies.

Rosen said the deal, which could result in the dismissal of three lawsuits pitting WaMu, JPMorgan and the FDIC against one another, also is contingent on the resolution of claims from holders of billions of dollars of bonds issued by Washington Mutual Bank, or WMB. Without the bondholders’ approval, or the disallowance of their claims in their entirety, the settlement could turn to "vapor," Rosen said outside court.

Evan Flaschen, an attorney representing institutional investors who hold about $2 billion in WMB notes and were not part of the settlement negotiations, expressed disappointment at the announcement.

Flaschen said the FDIC appeared to be more interested in getting released from WMI’s claims that it improperly sold WaMu assets to JPMorgan at a "fire sale" price after the largest bank failure in U.S. history, rather than exercising its fiduciary duties to the bank’s creditors.

"It appears that the FDIC is only looking out for its own interests and does not care for the creditors in the bank receivership it is supposed to be protecting," he said.

"It’s pretty disappointing that creditors of a bank are treated worse than creditors of a holding company," Flaschen added, referring to the fact that holders of WMI bonds are expected to recover on their claims.

David Barr, a spokesman for the FDIC, declined to answer questions about the settlement, but issued statement saying the agency was pleased that a tentative agreement had been reached.

A spokesman for JPMorgan did not immediately return a message seeking comment.

Flaschen said the bank bondholders would redouble efforts to pressure Congress to force the FDIC to protect their interests, and that they were exploring their legal options.

"This just hit us over the head, and now we’re thinking about how to deal with it," he said.

In addition to turning over the $4 billion in deposits, JPMorgan has agreed to purchase Visa shares from WMI for $50 million, Rosen said. WMI also will take claim to $55 million paid into the bankruptcy court registry by the federal government as part of a judgment in a lawsuit filed by its American Savings Bank affiliate.

ADP shares have dropped 17 cents to $43.76 so far today. The stock reached a 52-week high of $44.50 in November, and dipped to a recent low of $40 last month. Options action during today’s sessions suggests an investor expects even further upside during the near-term.

Around 11:02 a.m. EST, the front-month March 43 calls and the April 45 calls crossed the tape 5,000 times each. It looks like an investor sold to close the in-the-money March 43 calls and bought to open the out-of-the-money April 45 calls on a bullish bet that the stock could rally another 3% by April options expiration, or that the stock could rally before expiry and provide a chance to sell them back for a profit. The investor collected around 50 cents per roll, despite maintaining a bullish position in ADP. The March 43 calls traded for 95 cents per contract, while the April 45 calls crossed at 45 cents per contract.

Implied volatility of the front-month options and the April 45 calls is roughly 16%, compared to a 30-day historical volatility of 17%. The March 43 calls, home to current open interest of more than 7,000 contracts, have dropped ten cents on the day, while the April 45 calls are down five cents on the day and are home to current open interest of 176 contracts.

Though ADP shares are slightly down on the day, at least one investor might not be finished with the stock and rolled a long position out and up.

For a visual evaluation of the risk/reward dynamics of this bullish roll, open a free virtual trading account and discover trading tools that will make your trading easier.

For more on ADP:

ADP names Symantec CEO to its board

Bullishness in payroll services

Trade Idea: XL Bull Put Spread

• Sell to open 20 July 19 puts
• Buy to open 20 July 14 puts
• The limit price (i.e., when you execute your order, you should collect at least this amount for the put spread) is $1.20.
• Note: This is a credit spread.  Both options should be traded simultaneously.
  

The Sentiment

Earlier this week, Citigroup initiated coverage of several insurance companies.  One of the names they gave a buy rating to was XL.    Given that XL currently trades for about 7.4 times analyst earnings estimates, and that it trades for less than 0.7 times book, we think that it can close above $19  at July expiration, which would enable us to attain our maximum profit.

Trade Analysis

XL is currently trading around $18.86, up 0.5% today.

• Sell to open 20 July 19 puts
• Buy to open 20 July 14 puts
• The limit price (i.e., when you execute your order, you should collect at least this amount for the put spread) is $1.20.
• Note: This is a credit spread.  Both options should be traded simultaneously.

The Upside: Maximum profit for this credit spread is the $1.20 per spread collected upon entry (minus commissions). The max profit will be achieved if XL shares are above $19 when the options expire on July 16th. Return on risk is about 32% in 37 days.

The Downside: Maximum risk is $3.80 per spread, or the difference between the strikes minus the credit received. For maximum loss to occur, XL would need to be trading below the long put strike (14) at July expiration. At this point, the 19 put is in-the-money by $5 and you would be assigned, forcing you to exercise the 14 put to cover. XL is currently about 26% above the lower strike.

The margin requirement for this spread could be as high as $3.80, or $380 per spread ($7,600  for a 20-lot).

Breakeven: Breakeven is the strike price of the sold put (19.00) minus the credit, or $17.80. Below this level, the spread begins to lose money.  XL is currently trading about 5.6% above the breakeven point.

Probability of Success

Click here to enlarge

Based on the probability of today’s implied volatility, this strategy has a 42.92% chance of losing money and a 57.08% chance of achieving some or all of the maximum potential profit.  There is a 7.74% chance of suffering the maximum loss.  This image was created using a free probability calculator, part of a virtual trading account.

Trade Management

The 14 strike currently has a smaller theta than the 19 put.  If XL falls to a point where the 14 strike has a higher theta, we will revisit and see if we need to buy the spread back to close.

Remember, Option  Trading Alerts (OTAs) are generated by the www.ONN.tv team as a starting point for self-directed investors. OTAs are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions and should consult with a financial advisor if you require customized advice.

Price: 107.97, Change: -0.63 , Percent Change: -0.58

Price: 39.56, Change: -0.49, Percent Change: -1.22

Schwab said EPS would probably come in 4 cents lower than last quarter, or at 10 cents, well off analysts’ 15-cent estimate. The company is boosting marketing spend by 25% this quarter to help counter the trend, said Chief Executive Joe Martinetto.

Price: 18.62, Change: -0.48 , Percent Change: -2.51

Preflucel is designed to protect against swine flu, influenza B, and Hong Kong flu. Baxter and its partner DynPort Vaccine Co. said the shot gave a 78 percent protection rate against flu strains that matched the ones in the vaccine, and 71 percent from all strains.

The vaccine was tested on more than 7,200 people, and results were taken 21 days after inoculation. Baxter and DynPort said the most common side effects of Preflucel were reactions at the site of injection, muscle pain, fatigue, headache, and malaise.

Most flu vaccines are cultivated in chicken eggs, but Preflucel is not. Baxter said Preflucel is made with a technology called Vero cell, and made from a mammalian cell line. The company said its manufacturing process prevents interaction between the vaccine and the egg environment, and keeps it pure because it does not interact with antibiotics. It says it uses no preservatives or adjuvants, which are drugs intended to strengthen the vaccine’s effects.

Baxter and DynPort plan to complete testing of Preflucel in the next few months. In afternoon trading, Baxter shares fell 38 cents to $57.78.

IPads with Wi-Fi wireless connections will go on sale on April 3 for $499 and up. Apple Inc. says people can pre-order online and get it on April 3 where Saturday delivery is available.

Shoppers can also reserve an iPad online, then pay for it and pick it up at a local Apple store.

Apple says versions of the iPad with cellular data connections and Wi-Fi will go on sale at the end of April.

Apple had also taken orders for the latest version of its iPhone, the 3GS, released in June, though many consumers lined up overnight anyhow to be among the first buyers.

The company, which makes flatbed trailers, refrigerated vans and other heavy equipment, said that the strengthening economy is fueling the demand.

Executives said it was too early to tell whether the demand would continue.

"While it is too early to declare that recent demand will prove to be sustainable, we are nonetheless encouraged by the increased quote and order activity of late," President and CEO Dick Giromini said in a statement. "We are hopeful that the addition of the new hires will be long-term."

The company has about 2,800 workers, according to Thomson Reuters.

Wabash National shares climbed 53 cents, or 9.8 percent, to $5.94 in midday trading Friday. Earlier shares traded at a 52-week peak of $6.10.

AEP fell $.21 or .6 percent, to $34.01.

ConEd fell $.20 or .5 percent, to $43.69.

Duke Energy fell $.14 or .9 percent, to $16.34.

Pepco Holdings fell $.04 or .3 percent, to $17.02.

Southern Co fell $.18 or .6 percent, to $32.32.

AT&T Inc fell $.11 or .4 percent, to $25.49.

Qwest unchanged at $4.80.

Sprint Nextel unchanged at $3.70.

Verizon fell $.19 or .6 percent, to $29.65.

Baxter fell $.46 or .8 percent, to $57.70.

Bristol-Myers Squibb fell $.13 or .5 percent, to $25.83.

Hospira rose $.01 or percent, to $54.20.

Johnson & Johnson fell $.14 or .2 percent, to $64.08.

King Pharmaceuticals rose $.16 or 1.3 percent, to $12.42.

Eli Lilly fell $.08 or .2 percent, to $35.74.

Merck fell $.08 or .2 percent, to $36.80.

Pfizer fell $.27 or 1.6 percent, to $17.02.

AutoZone rose $.25 or .2 percent, to $168.91.

Gap rose $.06 or .3 percent, to $22.74.

Home Depot rose $.25 or .8 percent, to $32.38.

Lowes rose $.16 or .7 percent, to $24.75.

OfficeMax rose $.05 or .3 percent, to $16.66.

TJX Companies rose $.41 or 1.0 percent, to $42.18.

CVSCaremark fell $.06 or .2 percent, to $34.60.

Express Scripts fell $.19 or .2 percent, to $99.06.

MedcoHealth fell $.13 or .2 percent, to $64.51.

Chevron fell $.41 or .6 percent, to $73.58.

ConocoPhillips rose $.07 or .1 percent, to $51.37.

Exxon Mobil fell $.59 or .9 percent, to $66.63.

Marathon Oil fell $.23 or .7 percent, to $31.44.

CSX rose $.16 or .3 percent, to $50.84.

Canadian National rose $.54 or 1.0 percent, to $57.14.

Canadian Pacific rose $.07 or .1 percent, to $54.97.

Kansas City Southern fell $.21 or .6 percent, to $35.79.

Norfolk Southern fell $.07 or .1 percent, to $54.29.

Union Pacific rose $.04 or .1 percent, to $72.54.

Disney fell $.31 or .9 percent, to $33.50.

NY Times fell $.08 or .7 percent, to $11.44.

News Corp fell $.14 or .8 percent, to $16.55.

TimeWrn rs fell $.21 or .7 percent, to $30.46.

Viacom rose $.10 or .3 percent, to $33.31.

Abbott Labs fell $1.75 or 3.2 percent, to $53.79.

Allergan fell $.10 or .2 percent, to $62.01.

Bard fell $.27 or .3 percent, to $82.49.

Baxter fell $.46 or .8 percent, to $57.70.

Boston Scientific rose $.01 or .1 percent, to $7.87.

Hospira rose $.01 or percent, to $54.20.

Johnson & Johnson fell $.14 or .2 percent, to $64.08.

Medtronic fell $.52 or 1.2 percent, to $43.82.

St Jude Medical fell $.34 or .9 percent, to $37.40.

Stryker fell $.87 or 1.6 percent, to $54.86.

Zimmer rose $1.92 or 3.4 percent, to $58.95.

Aetna fell $.34 or 1.0 percent, to $32.35.

CIGNA fell $.32 or .9 percent, to $34.63.

Coventry Healthcare fell $.19 or .8 percent, to $24.36.

Humana fell $.10 or .2 percent, to $48.90.

UnitedHealth fell $.32 or 1.0 percent, to $33.18.

WellPoint fell $.75 or 1.2 percent, to $62.80.

Goldman Sachs rose $2.49 or 1.4 percent, to $176.00.

Morgan Stanley rose $.55 or 1.8 percent, to $30.57.

Bank of America fell $.07 or .4 percent, to $17.05.

Citigroup fell $.09 or 2.2 percent, to $4.09.

JPMorgan Chase rose $.18 or .4 percent, to $43.36.

Black & Decker fell $.21 or .3 percent, to $74.70.

Snap-On fell $.20 or .5 percent, to $43.32.

Stanley Works fell $.21 or .4 percent, to $58.62.

Whirlpool fell $.54 or .6 percent, to $85.99.

Apple Inc rose $1.12 or .5 percent, to $226.62.

Dell Inc rose $.04 or .3 percent, to $14.25.

Hewlett Packard rose $.15 or .3 percent, to $52.17.

IBM rose $.34 or .3 percent, to $127.94.

Lexmark fell $.28 or .8 percent, to $35.57.

LVS Credit Spread Trade Details:

LVS is currently trading at $19.63, up roughly 1.5% today.

Credit Spread/Bear Call Spread–

• Sell the March 20 call (out-of-the-money)
• Buy the March 21 call (out-of-the-money)
• Net credit of $0.25 per spread

By opening a free virtual trading account, you can build a profit/loss diagram to help visualize this trade.

Profit/Loss Details:

Maximum Profit: $0.25 (the credit collected). This excludes commissions, though exit commissions will not be required if both calls expire worthless.

Maximum Risk: $0.75 (the difference between strikes minus the credit collected).

Breakeven: $20.25 (the strike of the lower call plus the premium).

For more on LVS:

Betting on downside in Las Vegas Sands (NYSE: LVS)

Put sellers bet on Las Vegas Sands (NYSE: LVS)

Remember, trading Ideas are generated by the ONN Idea Generating Platform as a starting point for people to begin their own research. Trading ideas are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions, but we hope that some of these ideas will give you a starting point as you look for strategies to employ.

NFLX is down $1.32, or 1.85%, to $69.87 on the move although the stock is up 59% since mid-August.

Analyst Scott Devitt cut the stock to "equal weight" from "overweight" although he is still upbeat about the company’s core offerings of DVD-by-mail and digitally streamed movies.

But given the recent rally compared with expectations of future earnings beats, longer-term potential postal rate hikes and competition from Redbox and emerging digital players "lead us to look elsewhere for investment ideas."

Price: 69.87, Change: -1.32, Percent Change: -1.85

Bernstein Research analyst Tim Anderson gave his assessment after the drugmaker said late Thursday that an interim analysis halfway through a long study of the controversial drug didn’t find serious safety problems. Such interim analyses are routinely done to ensure that drugs being tested aren’t harming study participants, in which case ethical rules require stopping the study.

Anderson, in a report to investors, said even though the safety monitoring board decided the study, called IMPROVE-IT, should continue, it might still show Vytorin works no better than a much-cheaper generic version of Zocor.

Vytorin combines Zocor and a different type of cholesterol pill, Zetia. Merck hopes the study will show Vytorin prevents heart attacks, strokes and deaths more than Zocor alone.

Generic versions of Zocor, which had been a blockbuster for Merck until it got generic competition in 2006, have been cutting into sales of pricey Vytorin and other brand-name cholesterol drugs, particularly as more people lose health insurance.

Merck got a black eye when it suspiciously delayed release of another study, called ENHANCE, showing Vytorin didn’t prevent plaque buildup in neck arteries any better than Zocor alone. After a congressional panel started investigating the delay, Merck released partial results in January 2008.

Critics said Merck deliberately held up the release to protect sales of Zetia and Vytorin, which immediately began to decline. They totaled $5.2 billion in 2007, but were down to $4.3 billion last year.

Merck officials said at the time that difficulties analyzing the complex results, including high-tech imaging of the arteries, delayed release of the results.

Analyst Les Funtleyder of Miller Tabak & Co. said Wall Street had expected the safety board would decide the study should continue, "but it should remove a very small overhang" on Merck’s shares related to Vytorin concerns.

In afternoon trading, shares of the Whitehouse Station, N.J., company rose 25 cents at $37.13.

Cleveland Clinic cardiology chief Dr. Steven Nissen said he thinks public release of the interim analysis – a normally confidential step in a study – "was unwise and probably intended to support the commercial goals of the company."

Nissen said in an e-mailed statement that Merck’s announcement tells "very little about the likelihood that the drug is actually effective."

"More than a decade after introduction, we still don’t know whether the drug actually improves patient outcomes," Nissen wrote.

Research funded by Merck has shown Vytorin reduces levels of bad cholesterol more than just Zocor alone, but no study has shown it reduces risk of a heart attack, as rival Pfizer Inc. can claim for its Lipitor, the world’s top-selling drug at nearly $13 billion a year.

IMPROVE-IT, an 18,000-patient study expected to wrap up around June 2013, should answer that question.

The cholesterol drug category, with sales exceeding $30 billion a year, is among the most competitive.

Funtleyder also noted sales of Vytorin "are unlikely to recover from safety concerns."

He referred to another study, called SEAS, that indicated a possible link between Vytorin and cancer. Food and Drug Administration researchers in December said that they found no evidence of such a link after reviewing results of multiple studies in people and animals.

Verizon, whose ticker symbol is "VZ," has approximately 2.5 million shareowners and approximately 2.8 billion shares of common stock outstanding.

"Verizon has a broad and diverse shareholder base, and we believe that the additional support provided by dual listing will benefit our current and potential investors," said Verizon Chief Financial Officer John Killian in a printed release.

The company’s shares fell 14 cents to $29.70 in afternoon trading.

The online retail sector is mixed so far today, but EBAY shares are currently trading up 50 cents, to $25.94. EBAY did not announce any news today that could have catalyzed the pop-up in the stock, and the company has not confirmed an earnings release date. The market, however, expects the report around April 21.

By 12 p.m. EST, the April 30 calls and July 35 calls had crossed the tape nearly 7,500 times each thanks to an investor who likely rolled-out a long position that would have expired next month. It looks like an investor sold to close the April 30 calls for the bid price of five cents per contract and simultaneously bought to open the July 35 calls for 10 cents per contract, paying a net debit of five cents per roll. The nearer-term 30-strike calls are home to current open interest of 8,815 contracts, suggesting investors traded these options to close. On the other hand, current open interest of the July 35 calls is just 161 contracts, suggesting investors opened these option positions.

Bullish investors who rolled these calls could be betting that EBAY shares might experience 40% of upside throughout the later-term and close higher than $35.05 at July options expiration. Or, they are more likely banking on a rally in the options prior to July expiration which could give them the chance to sell the options out at a profit. Implied volatility of the April 30 calls and July 35 calls is roughly 30% compared to a 30-day historical volatility of 28%.

EBAY shares reached a 52-week high of $26 a couple days ago, and have not touched the $30-handle since June 2008. This trend makes it even more interesting that one investor rolled a bullish position expecting the stock to reach new highs between now and July options expiration.

By opening a free virtual trading account, you can visualize the risk/reward dynamics of this trade. Don’t forget to also sign up to trade for free!

Air Methods shares were up $2.40, or 8.65%, to $30.14 in Friday trading.

The company’s net income fell to $2.7 million, or $0.22 per share, compared with $3.7 million, or $0.30 per share, a year earlier. Its revenue rose 1% to $120.2 million.

The results included a loss of $200,000 from the disposition of assets, compared with a gain of $300,000 a year earlier.

Analysts surveyed by Thomson Reuters, who typically exclude such one-time items, expected Air Methods to earn 27 cents per share on revenue of $121.6 million.

Price: 30.14, Change: +2.40, Percent Change: +8.65

Here’s an update of the chart:

The obvious story this picture tells is that AIG is above the 200-day moving average and that the 20- and 50-day have crossed positive. Both of these facts provide more encouragement for technical traders, and for portfolio managers who already like the stock fundamentally. And it doesn’t hurt that on the weekly chart, although the 20- and 50-week moving averages have crossed negative, the stock is above these active trend markers, which surround the $30 level.

A Big Sprawling Bull Call Spread for only $2.40

This morning we spotted an interesting bullish options play in AIG, where an investor bought 5,000 January 50/75 call spreads for about $2.40 each. The net cash outlay for this strategy is 5,000 x $2.40 x 100 shares per option contract = $1.2 million. The investor stands to gain potential profits of $22.60 per spread, or a total of $11.3 million, if AIG shares hit $75 or higher by January 2011 options expiration.

Talk about bullish. This option player is hoping for the stock to double in the next three quarters, but will begin to make profits even before then if the stock continues to climb toward $50. Not only did they give themselves time for this strategy to work, but they paid less for the farther-out options in terms of implied volatility, which tends to hover around 85-90% for near-term expirations but is only at 75% for the January series. For more details on this trade, see Karla Yeh’s report here.

What About the Business Fundamentals?

All this chart and options talk is fine, but if you’re going to risk money on this hobbled insurance giant who still owes big dough to U.S. taxpayers, you had better have some idea of what the company is actually going to do to make money for investors besides watch its stock price run up. When I want to know what potential a financial company has to earn profits and manage its risk, I listen to a few experts and one of my favorites is Christopher Whalen of Institutional Risk Analytics.

In an interview on March 1^st with Southern California Public Radio station KPCC, Whalen talked about the line that AIG walks when it succumbs to public pressure to repay the U.S. government by selling valuable assets:

“It’s a good thing, but these are some of the best assets that AIG has so I’m not sure we’re going to see anything like the proceeds that we need for the government to be paid back in full,” he said.

“Once you sell the Asian business, which, as I say, is one of the most attractive businesses they have, and you lose that cash flow you lose, that revenue what’s left is going to be worthless, by definition,” Whalen said.

And since AIG still hasn’t returned to profitability and may not for some time, what is it investors are buying? The company lost $9 billion in the fourth quarter of 2009 even as the financial system recovers and the housing market stabilizes. Without profitable business units that could generate revenue in the future, are investors merely banking on the nearly blank check of government life support to continue giving the company a long-term guarantee at future success?

Those are important questions and next week I will dig deeper to find out what some bullish financial analysts think about AIG to plot a course for how much higher the stock can go from here. Until then, the bulls appear in charge and all dips to $30 can be used as opportunities to accumulate shares or call options.

“Mind the Risk, Bank the Profits!”

Caraco shares traded up 11.20%, or $0.58, to $5.76.

The drug, which is 50mg and 100mg oxaliplatin injections, are reportedly an anticancer agent used in the treatment of colon and rectal cancer.

Price: 5.76, Change: +0.58, Percent Change: +11.20

Around midday Friday, the S&P/TSX Composite Index is down 0.03% at 11,975.97.

The average dipped in step with a pullback for oil prices from earlier highs.

Broad market support followed raised guidance at Potash Corporation of Saskatchewan (POT), its shares up some 7%. Potash now expects earnings in the range of $1.30-$1.50 compared with the previous forecast of $0.70-$1.00 per share provided on Jan. 28. The company now expects a record quarter for North American sales volume, along with higher-than-expected margins in nitrogen and phosphate.

Agrium was also up some 7%.

Analyst Shaw Wu cut RIM from Kaufman’s Focus List, noting that the stock had rallied 21% since it was added to the list Feb 1. At lower values, the stock was "overly discounted," he said, but added that the stock may now be susceptible to profit-taking. Wu maintained his "buy" rating.

The company is guiding for $4.2 billion to $4.4 billion in revenue and profits of $1.23 to $1.31 a share. The company reports March 31.

Price: 75.29, Change: -0.65, Percent Change: -0.85

The FDA said in a statement Friday that certain patients with a genetic variation cannot metabolize the drug, putting them at increased risk for heart attack and stroke.

Patients can determine if they are "poor metabolizers" by taking a genetic test. The FDA recommends these patients use other blood thinners, such as aspirin.

The FDA added similar language to Plavix’s label in November, but the new warning appears within a black box, the FDA’s most severe safety labeling.

Plavix is prescribed to heart disease patients to prevent dangerous blood clots, which can cause heart attack, stroke and death.

With genetic tests costing around $500, experts say it’s unlikely such testing will become standard for patients taking Plavix.

"I think based on this people will do more genetic testing, but I think it’s premature to say that everyone who gets Plavix needs to be tested," said Dr. Louis Teichholz, head of cardiology at Hackensack University Medical Center.

Teichholz said the black box warning on Plavix could push more doctors to prescribe Effient, a competing blood thinner launched by Eli Lilly & Co. last summer.

In order to work effectively, Plavix must be broken down by a particular liver enzyme. But FDA says 2 to 14 percent of people in the U.S. have low levels of the enzyme, preventing them from successfully processing Plavix. The likelihood of being a non-responder varies by race, according to the FDA.

According to Sanofi-Aventis and Bristol-Myers Squibb, which market the drug, the patients who are designated as poor metabolizers represent about 2 percent of whites, 4 percent of blacks and 14 percent of Chinese, according to the prescribing information. In total, poor metabolizers account for 3 percent of the population, the companies said.

"Patients should not stop taking Plavix unless told to do so by their health care professional," the agency said in an online statement. "They should talk with their health care professional if they have any concerns about Plavix, or to find out if they should be tested for being a poor metabolizer."

Using a higher dose of Plavix can increase blood thinning in non-responsive patients, according to the new label, though higher doses have not been cleared by the FDA.

Plavix, with global sales of $8.6 billion in 2008, was the world’s second-best selling drug behind Pfizer’s cholesterol drug Lipitor.

A spokeswoman for New York-based Bristol-Myers said the company would add the new labeling to bottles of Plavix over the next two months.

"The revisions to the prescribing information for Plavix reflect the companies’ ongoing research in collaboration with the FDA," said Laura Hortas.

In November, the FDA warned that taking stomach-soothing drugs like Prilosec and Nexium alongside Plavix could cut the blood-thinner’s effect in half. Regulators said the key ingredient in the heartburn medications blocks the same liver enzyme needed to break down Plavix, muting the drug’s full effect.

Shares of Bristol-Myers Squibb Co. fell 7 cents to $25.89. Shares of Sanofi-Aventis fell 15 cents to $38.04.

The stock opened down 18 cents at $5.50 and is bouncing off its low of $4.44, adding back about 13 cents to trade down 19%.

The company’s guidance for Q1 also fell below the Street’s consensus forecast for $46.5 million. The company said it expects to pick up in the second half of 2010, and be "well positioned" to expand market-share and revenues in 2011.

The company also said it took $82.2 million in charges in the fourth quarter to reflect the writedown of goodwill and other intangible assets.

Price: 4.57 , Change: -1.11, Percent Change: -19.54

V Debit Spread Trade Detail

V is currently trading at $93.01, up around 0.4% this morning.

Debit Spread/Bull Call Spread -

• Buy the June 100 call (out-the-money)
• Sell the June 105 call (out-the-money)
• Net debit of $1.02 or less

Top Technology Stocks

MSFT: -0.20%

AAPL: +0.47%

IBM: +0.29%

CSCO: -0.31%

GOOG: +0.18%

Technology shares were mixed in morning trading as investors digested conflicting economic data released Friday.

The Dow Jones U.S. Technology Index was down 0.37, or 0.06%, to 597.75.

Led by a big gain in electronics, U.S. retail sales increased a seasonally adjusted 0.3% in February, despite three major snow storms in the East, the Commerce Department estimated Friday. Sales have risen in four of the past five months, and were up 3.9% compared with a year earlier.

Also Friday, consumer sentiment soured in March over the cloudy job market, according to a widely watched index, sending stocks south after an upbeat open.

In company news, Nokia (NOK) said it expects industry mobile device volumes to be up approximately 10% in 2010, compared to 2009. Nokia targets its mobile device volume market share to be flat in 2010, compared to 2009; and Nokia targets to increase its mobile device value market share slightly in 2010, compared to 2009.

Nokia shares were up $0.35, or 2.42%, to $14.84.

RF Micro (RFMD) is up after the stock was highlighted by Jim Cramer on his Mad Money show. Cramer suggested the stock has a lot of room to run. RF Micro shares, were up $0.20, or 4.23%, to $4.93.

Apple (AAPL) shares continued to delight as investors eagerly awaited the release of the new iPad tablet. The company has begun to take pre-orders for the product, which is set to go on sale April 3.

Apple shares were up 0.43%, or $0.97, to $226.47.

Top Health Care Stocks

JNJ: -0.19%

PFE: -0.93%

ABT: -2.68%

MRK: +0.17%

AMGN: -0.30%

Health care shares moved lower in Friday trading as Pfizer (PFE) said trials failed for a breast cancer drug.

The Dow Jones U.S. Health Care Index is down 0.83, or 0.25%, to 330.32.

Late Thursday, Pfizer said the cancer drug Sutent did not meet key goals in two late-stage studies focusing on advanced breast cancer. The drug is already sold as a treatment for advanced kidney cancer and gastrointestinal stromal cancer, which affects the stomach.

Pfizer shares were down 0.93%, or $0.16, to $17.12.

Abbott Labs (ABT) is lower after getting cut to "sell" from "hold" at Citigroup, which said the company may face "underlying profitability trouble" this year. Meanwhile, Amgen was started at neutral by Piper Jaffray before trading on Friday.

Abbott shares were down 2.68% to $54.04. Piper Jaffray shares were $XX.

Progenics Pharmaceuticals (PGNX) says it plans to advance oral methylnaltrexone for the treatment of opioid-induced constipation (OIC) into late stage clinical development and will commence a phase 2b/3 clinical trial of a methylnaltrexone tablet in chronic-pain patients in the second half of 2010.

Progenics shares were up 5.91%, or $0.28, to $5.20.

Also Friday, Arena Pharmaceuticals Inc. (ARNA) said it will launch its weight loss drug either on its own or with a partner within 12 weeks of FDA approval. The agency’s review deadline for Lorcaserin is Oct. 22.

Arena shares were down $0.08, or 2.57%, to $3.03.

Top Energy Stocks

XOM: -0.46%

CVX: -0.12%

COP: +0.62%

SLB: +0.09%

OXY: +0.16%

Energy stocks are mixed in Friday trading as oil notched up slightly.

The International Energy Agency said that strong demand from Asia in particular has pushed it to raise global demand estimates by 70,000 barrels a day to 86.6 million barrels a day.

Crude oil for April delivery rose 0.21%, or $0.17, to $82.28.

The IEA said that China will account for nearly one-third of total global oil demand this year. Yet worries that China may raise interest rates in an effort to prevent its economy from over-heating, and thus diminish the country’s appetite for oil, are keeping traders on their toes.

In energy stocks, ATP Oil & Gas (ATPG) says its major deepwater Gulf of Mexico development, the Telemark Hub, is on schedule to commence production during March 2010 from the Atwater Valley 63 # 4 well. This well was tested in February at a gross rate in excess of 10,700 Boe/d from two zones.

The ATP Titan, the Telemark Hub’s floating production and processing facility, is in the final stages of commissioning following the installation of all major production and processing components. The sales pipelines have been hydro-tested and dewatered.

ATP shares were up $2.13, or 12.21%, to $19.58.

Exxon Mobil Corp. (XOM) reported flaring at its Beaumont, Texas refinery due to "operating conditions." The oil giant’s community information line had a recorded message on the Southeast Texas Alerting Network that stated that the Beaumont facility requires flaring "at this time." No further information has been provided by the company.

Exxon Mobile shares were down $0.36, or 0.51%, to $66.87.

Central Appalachian coal producer Xinergy Ltd (XRG) said it has signed an agreement with JMP Coal Holdings LLC to buy all their outstanding interests in Raven Crest Mining LLC for $40 million.

In other energy futures, heating oil rose 1.21%, or $2.55, to 214.05. Natural gas futures declined 0.02%, or 0.001, to $4.43.

The ruling by the U.S. Court of Appeals for the District of Columbia leaves in place the Federal Communications Commission "program access" rules, which are intended to ensure that cable companies cannot withhold highly desirable programming that they own from competitors.

The rules require Comcast Corp., for instance, to make channels that it owns – including E! Entertainment, Versus and the Golf Channel – available to rivals such as DirecTV Inc., Dish Network Corp., AT&T Inc.’s U-Verse video service and Verizon’s FiOS video service.

The decision was a setback for Cablevision Systems Corp. and Comcast, which were challenging the FCC’s decision to extend a ban on exclusive programming contracts for five years.

Comcast has nonetheless pledged to extend the program access rules to the local NBC and Telemundo stations it would control as part of its proposed combination with NBC Universal. Comcast is seeking FCC and Justice Department approval to buy a 51 percent stake in NBC Universal from General Electric Co.

Comcast said it was disappointed in Friday’s ruling.

"The program access rules are based on an outdated and obsolete view of the competitive landscape," Cablevision said in a statement.

DirecTV and Verizon hailed the ruling as a win for consumers.

"This decision protects consumers’ ability to view the programs they demand as they gain new choices among video providers," Verizon said in a statement. The phone company has spent billions on its new FiOS fiber-optic network to deliver video and high-speed Internet services.

The circuit court decision comes amid growing concern in Washington about the rules governing access to both broadcast programming and channels owned by cable companies.

On Sunday, after talks broke down between ABC and Cablevision over the fees the cable company would pay to air the network, the ABC station in New York pulled its signal from Cablevision, causing subscribers to miss the first 15 minutes of the Oscars. A coalition of cable, satellite and phone companies seized on the incident to ask the FCC to prohibit broadcasters from interrupting signals during negotiations or before popular events, and to mandate binding arbitration.

FCC Chairman Julius Genachowski told lawmakers at a hearing Thursday that the FCC would review whether existing federal regulations still make sense.

Friday’s ruling is the second key victory for cable rivals in as many months when it comes to program access rules.

In January, the FCC voted to close to the so-called "terrestrial loophole," which lets cable companies get around program access rules by distributing programming over landlines rather than satellite connections.

Comcast, Cablevision and Cox Communications Inc. have relied on the loophole to deny sports programming to competitors such as DirecTV, Dish, AT&T and Verizon.

Genachowski praised Friday’s ruling. "The commission’s program access rules have played a vital role in making diverse and attractive video programming available to cable and satellite TV viewers," he said in a statement.

It sees 2010 adjusted earnings from continuing operations in a range of $12 million to $14 million on revenue of $290 million to $310 million

It says its CFO is stepping down, effective April 1. David He, vice president of operations in charge of the company’s financial systems, logistics, and payments systems, will serve as interim CFO until a permanent successor is named.

Price: 5.72, Change: -0.74 , Percent Change: -11.46

The Department of Justice is probing whether Monsanto is using gene licenses to keep competing technologies off the market. Specifically, DOJ is looking into how Monsanto sells and licenses its Roundup herbicide that farmers use to kill weeds, while crops from Monsanto’s seeds remain untouched.

There is concern that Monsanto’s seeds dominate the market, and it is abusing its patent rights. DOJ is looking into whether Monsanto’s licensing restrictions on seeds have a legitimate business justification.

Shares in Monsanto opened at $72.52, and have traded between $66.57 and $93.35 over the past 12 months.

Price: 72.69, Change: +1.08, Percent Change: +1.50

A block of 5,000 in-the-money January 2012 20 puts crossed the tape during morning trading for the bid price of $6.50 per contract. These puts are home to current open interest of 120 contracts, suggesting the action was initiated to open. It looks like an investor sold these longer-dated puts beeting that DELL shares could close higher than $13.50 at January 2012 options expiration.

Implied volatility of these puts is 32%, compared to a 30-day historical volatiliy of 31%. The January 2012 20 puts have climbed 10 cents so far today.

DELL did not announce any news today, and the company could announce earnings sometime around May 20. Shares of the computer maker are currently down three cents to $14.18.

Open a free virtual trading account to visualize the risk/reward dynamics of this short put position.

WMT: -0.02%

MCD: +0.83%

DIS: -0.68%

CVS: -0.12%

TWX: -0.52%

Consumer stocks are giving back gains from the open after the sector received mixed economic data and consumer sentiment soured in March.

Led by a big gain in electronics, U.S. retail sales increased a seasonally adjusted 0.3% in February, despite three major snow storms in the East, the Commerce Department estimated Friday. Sales have risen in four of the past five months, and were up 3.9% compared with a year earlier.

Most categories of retailers recorded month-over-month increases. Auto and truck sales were an exception, falling 2% compared with January. Excluding autos and trucks, retail sales increased 0.8%. Economists surveyed by MarketWatch were expecting sales to be unchanged, and for sales excluding autos to rise 0.1%.

Also Friday, consumer sentiment soured in March over the cloudy job market, according to a widely watched index, sending stocks south after an upbeat open.

The Reuters/University of Michigan index declined to 72.5 in March from 73.6 in February, missing the Street’s consensus view for a 73.6 reading, according to a Thompson Reuters poll.

In consumer stocks, Ann Taylor Stores (ANN) was down after it reports adjusted Q4 EPS of $0.05 vs a loss of $1.03 a year earlier and topping the Thomson Reuters mean analyst estimate for a loss of $0.01. Sales were $469.1 million, compared with net sales of $483.4 million a year earlier. The Street looked for $472.3 million. Q4 same-store sales down 0.6%.

The company guides for Q1 sales of $445 million. The Street is at $443.7 million. Ann Taylor shares were down 2.06%, or $0.40, to $19.05.

In other consumer news, Lionsgate Entertainment (LGF) says its Board of Directors, in consultation with its financial and legal advisors, has determined, by unanimous vote of the directors present, that the unsolicited partial tender offer from Carl Icahn for $6 per share is financially inadequate.

Icahn already holds a stake of about 18.9% stake and, offered to buy another 13.2 million shares. Such a deal would increase his stake to about 30 percent and make him the largest shareholder in the company.

Lionsgate shares were up 1.94%, or $0.11, to $5.78.

At 10:30 a.m. EST, it looks like an ORCL option investor bought 5,000 out-of-the-money September 27 calls for the ask price of 93 cents per contract. Investors will make money if ORCL shares close higher than $27.93 at September options expiration, or if the calls rally prior to expiration with a rally in the shares. Current open interest of these later-term calls is 1,400 contracts, indicating investors traded these options to open and expressed bullishness on the application software company. These calls have dropped nine cents so far on the day, and have an implied volatility of 25% compared to a 30-day historical volatility of 21% (the buying action we saw this morning most likely pushed up implied volatility).ORCL shares have dropped 35 cents, or more than 1%, to $24.79 so far today, and the company is due to announce earnings on March 25 after the market closes (analysts estimate earnings of 38 cents a share). ORCL did not announce any  news today that could have accounted for the slight decline in the stock.

Separately, this morning, Barrington Research upgraded the shares to "outperform" from "market perform."

Price: 10.38, Change: +0.83 , Percent Change: +8.69