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Wednesday, March 11, 2009

CERN, HPQ, GD

S&P 500: +0.24%
Markets edged higher today and there is talk again about the market bottoming out for the first time in a few weeks. Of course, it’s extremely difficult to differentiate whether a bear market rally or a new bull market.

Even if this isn’t the light at the end of the tunnel, some have taken comfort in the fact that conditions are deteriorating less alarmingly – a phenomenon sometimes referred to as the second derivative.


Cerner (CERN) +7.32%
Cerner continued its six day winning streak on news that Nancy-Ann DeParle, who resigned from Cerner’s board last week, will serve as director of the White House office for Health Reform.

Cerner is one of the leading suppliers of healthcare IT solutions in the U.S. and the U.K. It seems fair to assume that Cerner will benefit from healthcare reform, with technology likely to feature heavily in Obama’s healthcare reforms and a former Cerner board member helping oversee the process.


Hewlett-Packard (HPQ) +5.81%
Shares of Hewlett-Packard rallied on multiple analyst upgrades including a UBS recommendation saying “investors with a longer-term view can benefit” from buying the shares. We couldn’t agree more.


General Dynamics (GD) -3.16%
GD’s bid for a contract valued at about $6.5 billion was rejected. The contract was to make trucks that would protect troops in Afghanistan from roadside bombs.


Quick Hits

Peter Lazaroff, Junior Analyst

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