Stocks to Watch Tomorrow 12/29

Another completely dead day in the market.

We just heard that Bush will make January 2nd a federal holiday to honor President Ford. We haven't heard any word on whether the market will be opened or closed on Tuesday. The talking heads on TV said they may do a half a day.

The IPO we've been writing about recently, Fuwei Films Co., Ltd. (Nasdaq: FFHL), continues to find fans. The stock jumped nearly 35% today to $17.50. Not bad considering it was brought the the market at $8.28.

Apple Computer (Nasdaq: AAPL) gave the dip buyers another chance today after the FT rehashed the options scandal stuff (slow news day). Yeah, if Jobs is forced to leave the company the stock could drop $10-$15, but the chances of that happening are about 5%.

Microcap Point.360 (Nasdaq: PTSX) jumped 49% today and no it wasn't manipulated higher. The stock actually had legitimate news. Larger rival DG FastChannel (Nasdaq: DGIT) bought up 11.4% of the company from a hedge fund, paying up $3.25 per share in a negotiated deal dated 12/22 when the stock was at $2.40 in the open market that day. In a disclosure, DG FastChannel noted they entered a nondisclosure agreement with PTSX in August. This looks like a possible hostile takeover situation. One could speculate that DGIT and PTSX held talks but they couldn't come up with an agreement and now DGIT is trying to go around them. This may be hard. Chairman and CEO Haig Bagerdjian owns 27% of the company and Julia Stefanko, the ex-wife of former CEO Luke Stefanko, owns 17%.

Say it at so! Northfield Laboratories Inc. (Nasdaq: NFLD) finally had a up day after its blow-up last week. Has is hit a bottom? What about Sally Beauty (NYSE: SBH)? - up 2.6% today after a steady decline since negative news on the L'Oreal rights.

Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) announced mid-day that the FDA finally said they will review the New Drug Application (NDA) for THELIN. Sounds like good new right? Wrong - the FDA gives the review a Class 2 resubmission status instead of the hoped for Class 1 resubmission and sets a PDUFA date of June 15. The stock drops 23.6% on the news. OUCH.

Stocks to Watch Tomorrow 12/27

If you like watching paint dry then this is your week. Short of a $50 billion private equity buyout announcement before year-end (which could happen), this week looks like a complete waste.

The homies could see some interest tomorrow related to the release of November New Home Sales: Hovnanian Enterprises (NYSE: HOV), Toll Brothers (NYSE: TOL), Pulte Homes (NYSE: PHM), D.R. Horton (NYSE: DHI), Centex (NYSE: CTX), KB Home (NYSE: KBH), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Beazer Homes USA (NYSE: BZH), Meritage Homes (NYSE: MTH), WCI Communities (NYSE: WCI), Standard Pacific Corp. (NYSE: SPF).

ZI Corp. (Nasdaq: ZICA) is the latest has-news-will-maniuplate micro cap stock, jumping 45% today following Friday’s 87% run-up after the company announced the deployment of Qix by T-Mobile on 25,000 Nokia N70 mobile phones. The stock closed at $0.94 last Thursday – now at $2.52.

Last week’s hot IPO Fuwei Films Co., Ltd. (NASDAQ: FFHL) rose another 8% today.

Escala Group Inc. (Nasdaq: ESCL) closed in the plus column today (+3.4%) after seeing some pressure the past few sessions after last week’s massive move on news the company said they weren’t crooks. The stock was much higher earlier in the session. ESCL continues to be a battlegroud for shorts, shorts that want to cover, buyers who want to squeeze the shorts and dilusion long-term buyers.

Telik Inc. (Nasdaq: TELK) was this week’s biotech blow-up du jour. The stock sank 71% today after ugly news across the board on three Phase 3 cancer drug trials. TELK joins the ranks of mess-of-a-biotech company Northfield Laboratories (Nasdaq: NFLD), which still can’t gain any traction after last week’s blood substitute disaster.

After the close, FT.com reported that Bisys Group Inc. (NYSE: BSG) could be considering a management-led buyout.

Stocks to Watch Tomorrow 12/20

Northfield Laboratories Inc. (Nasdaq: NFLD) was crunched 20% today ahead of an update on the Phase III clinical trial of PolyHeme, its controversial red blood cell substitute. After the close the company said because of discrepancies in the initial data, the database will be unlocked and corrected prior to finalizing the statistical analyses. The company said preliminary results indicate that in the primary modified intent to treat (MITT) population (those who were randomized and received some treatment) the upper limit of the CI exceeded the 7% threshold by 0.3%. However, in the pre-specified per protocol (PP) population (those who both received the correct treatment and did not otherwise violate the protocol), the upper limit of the CI was below the threshold, at 5.8%. We're not sure where this one lands but it will be fun watching tomorrow.

FedEx (NYSE: FDX) is reporting earnings before the open Wednesday. Guidance will be key here, not only for the company but as a gauge for the rest of the economy.

Nike (NYSE: NKE) is reporting after the close Wednesday. Short of a major surprise, the needle will unlikely move much. But again, comments on its outlook could be seen as a gauge for the rest of the economy.

Escala Group Inc. (Nasdaq: ESCL) jumped 92% Tuesday on huge volume after the company said they will restate prior results and basically said they are not crooks. The move was likely partially related to a short squeeze. This company has a lot to do before it can re-gain respect on Wall Street, but traders may try to keep pressing the shorts here.

Syntroleum Corporation (NASDAQ: SYNM) gained 46% today after announcing a Joint Development Agreement with Kuwait Foreign Petroleum Exploration Company, K.S.C. to join in the development of a 50,000 barrel per day Gas-to-Liquids facility in Papua New Guinea. This one seems to be back on the radar, but after the big run we may see some profit taking before moving higher.

Palm, Inc. (Nasdaq: PALM) met/beat their lowered Q2 results, but guidance was disappointing. Weakness at Palm was pretty well-telegraphed. It's time for the company to put the For Sale sign up.

Today's IPO with the least fanfare, Fuwei Films Co., Ltd. (NASDAQ: FFHL), rose 34%. The one with the most, Melco PBL Entertainment (Macau) Limited (Nasdaq: MPEL), rose 13.4%

Tomorrow's proposed IPOs are Solarfun Power Holdings (Nasdaq: SOLF), Dayton Superior Corporation (Nasdaq: DSUP) and Artes Medical (Nasdaq: ARTE).

Look for upcoming bottom fishing in Circuit City Stores Inc. (NYSE: CC) after today's 16.5% haircut after a terrible quarter and guidance.