The Morning Eye Opener

Every single one of yesterday's hot shorts saw gains for the bears yesterday, and they averaged a 4.3% return open to close. You'd be crazy not to check out these hot shorts in today's Morning Eye Opener:

DNDN - Dendreon was the darling of bio tech bettors. They bought in, they watched as the results came in, they hyped it, they ran it, they hoped and prayed that the FDA would finally approve Provenge, the first ever vaccine to fight cancer. And then it happened. Unlike so many other bio techs that never get that highly sought after approval, they did it. They got the approval. Way back when, the stock shot up 10 points in a couple of days on the big news. Problem is, the stock was priced as if it were already approved before it got approved, and besides some news momentum and retail hysteria, the stock traded down on the news. There was recently some decent news that Aetna would cover the expensive prostate cancer treatment, but the devils in the details. There is some fine print that the patient must be on hormone treatment for 3 months so there will be a defined lag before sales can actually start being reflected or at least collected. To me it’s a buy the rumor sell the news and the stock could trade back into $30 territory in the near term.

AIG - There is absolutely no reason to own AIG , and to me and many of my bearish brethren, this stock is really a $1.75 stock on steroids, the steroids being a reverse split.
They lost a deal to bring in some cash and sell the Asian unit, there is talk of them needing more cash, and the possibility that they will be investigated to see how they got all the sweetheart deals they did during the Hank Paulson Bailout Nation Tour. The stock is up 15% in the last couple weeks on no news. The stocks a pig, too bad we the people are the shareholders.

WYNN – Wynn Resorts is another stock that rises for no particular reason, other than Steve Wynn’s being a proven Winner. Someone said on one of the TV shoes the other day that people who invest with Steve Wynn sleep well at night, and it made sense. The Wynn brand is a good one, but the problem is the stock has seen enormous upside in a bad economy. Most of its recent positive performance is on the hopes of Asian growth, and renewed Travel spending. My issue with this is business travel is still down and getting worse, people are maxed on credit so they cannot even book flights, air travel is hurt, fares are rising, and domestic travel seems to be shrinking along with most peoples disposable income. LVS was another one we have seen lately, but WYNN’s 20% gain in two weeks makes it a much more attractive play.

CSIQ - Solars Suck—Too much supply out there still, not enough demand, the global market place for Solar is reliant on Government programs to rebate buyers. Most of the big European government programs like Germany and Spain from two years back, are either cancelled, or if still in effect, significantly curtailed. The market is flooded with supply, the demand for alt energy is severely diminished, and the Solar Bulls have their tails between their legs. Many of the solars are overheated.

CHCO - A meteoric rise for City Holding from the March 2009 lows of 20 to its top of 37 at Aprils end is seemingly ending, and the fall back to the 20’s could be double the speed. It took City Holdings 14 months to rise almost 80%, and it could give it all back in a matter of weeks, depending on how this Financial Reform bill shakes out. Apparently one detail in the bank reform pieces of legislation floating around DC is that those annoying overdraft and service fees that all our banks keep whacking us with are going to be sliced and diced. This is good for the consumer, bad for the banks that rely on these fees for a big part of their revenue. City Holding will be severely hammered by the power of the legislative gavel. 28% of CHCO operating revenue is tied to fees, and they could see up to a 20% decrease in Revs if the bill cuts fees substantially. This sleeper could be sleepin with the fishes. In the l0w 20’s it’s a value play again.