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Wednesday Sep 27, 2006

Pace-Makers

Taipan Group's Dynamic Market Alert

By J. Christoph Amberger

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Pace-Makers

by J. Christoph Amberger

My way home from the office passes a half-dozen local colleges, most of them situated on or slightly off Charles Street, one of the main north-south axes of Baltimore.

If the weather is fair -- a bit of sun and not too windy -- I often pass groups of “peaceful demonstrators.” You know the type: old fogeys who last changed their hairstyle in 1970, with long Karl Marx beards and fluttering white manes. (And that’s just the women!) There are middle-aged women with buzzcuts, Birkenstocks and batik moomoos. And sometimes, you even see the occasional youngish teaching assistant, recognizable by his matted hair and his soiled leg-wear.

They all hold up signs: “War is Not the Answer.” “Peace Now!” Even“Pace.” Because, after all, they’re not just peaceful but multicultural. (I have to disappoint you, though. The manufacturers of the latter signs are not called Pace-makers.)

On the anniversary of 9/11, the fair-weather pacifists are typically reinforced by gaggles of church ladies and soccer moms. (You can tell because the side streets are parked shut with SUVs that have Kerry stickers on the rear window.) I remember one in particular, who had her preschooler hold up a sign that said, “My Mom says ‘Don’t Hit!’”

Where were you when we needed you, I thought as I turned up my P.R. Kantate CD. If only Mohammad Atta had seen that sign in 2001, he’d still be sitting at home, drinking Diet Coke and watching Judge Judy reruns, converted to blissful peace and harmony by the earth-tone universal wisdom of a liberal suburban mother.

-- Pacifism is not evenly spread throughout the city, though. There are certain hotspots, one of which is located near Johns Hopkins University’s Homewood Campus. As far as tuition rates go, that’s as high as it gets in Baltimore.

But evidently, public peacefulness may not be directly related to the size of the parental tuition check.  A study commissioned by the Intercollegiate Studies Institute and designed and conducted by pollsters at the University of Connecticut’s Department of Public Policy ranked JHU dead last out of 50 U.S. colleges in a survey testing the knowledge of American history, economics, political philosophy and U.S. foreign relations.

Nearly half of Hopkins seniors couldn’t answer the majority of the survey’s multiple-choice questions correctly.

No wonder, I thought. They didn’t ask them the right questions: Because war, apparently, was not the answer.

-- The Dow rallied this morning, coming within a hair of its 52-week highs -- which in themselves are just around the corner from the all-time highs set during the heady day of the Internet bubble.

Around me I can almost hear my fellow editors’ mental gears grind: How to interpret this in the face of oil prices that were moving higher and new housing numbers that indicated that, despite everything that has been written about the impending collapse of U.S. real estate, people were still buying new homes.

Which in itself is a far more powerful indicator for the overall economic mood in the United States than all consumer confidence indicators combined…

People worried about their financial and economic future don’t buy new homes.

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Earnings Announcements

Accenture Ltd, American Greetings Corporation, Family Dollar Stores Inc, Research in Motion Ltd, Topps Company Inc, and Workstream Inc are releasing earnings.

Brought to you by http://www.AmericanCapitalist.net

 

Unlock Dates for September 2006

9/27/06 – Himax Technologies is unlocking 52 million shares.

Wendy’s will distribute its remaining 82.75% stake in Tim Hortons Inc on September 29, 2006.  When these shares flood the market, look for THI to drop.  THI has a PE of 19 as compared to a company like McDonald’s, which trades with a PE of 16, is much cheaper, and has more growth.

Brought to you by http://www.vixtrader.com

 

Upgrades and Downgrades

Analogic downgraded by Needham & Company from Buy to Hold.

BearingPoint downgraded by Stifel Nicolaus (from Buy to Hold) and by Needham & Company (from Buy to Hold).

Career Education downgraded by Lehman Brothers from Equal Weight to Underweight.

Kellogg downgraded by BMO Capital Markets from Outperform to Market Perform.

Millennium Pharmaceuticals downgraded by JMP Securities from Market Perform to Market Underperform.

Rackable Systems downgraded by Matrix Research from Hold to Sell.

Red Hat downgraded by Jefferies & Company (from Buy to Hold), by Prudential (from Overweight to Neutral), and by First Albany (from Buy to Neutral).

Brought to you by http://www.gressor.com.

Quote of the Day:

Jackass II is the big hit at the box office. Don’t confuse that with Jackass I, which is about Venezuelan President Hugo Chavez.”

- Jay Leno, September 26, 2006

 

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