Against the Grain: Early Morning Movers (EK, YHOO, NFLX, FMCN, NEM, NAK, GDX, GDXJ, GLD)

The markets opened in the red this morning but have recovered after the ISM Manufacturing data favored very low growth rather than recession.  There were a number of stocks getting a boost right out of the chute this morning– for all kinds of different reasons. The biggest gainer so far appears to be Eastman Kodak Co. (NYSE: EK), up more than 45%, apparently because the company said that over the weekend that it would not file for bankruptcy. The company said it plans to meet all its obligations and also plans to become a profitable company again.

Other gainers early this morning are Yahoo! Inc. (NASDAQ: YHOO), Netflix Inc. (NASDAQ: NFLX), Focus Media Holding Ltd. (NASDAQ: FMCN), Northern Dynasty Minerals Ltd. (AMEX: NAK), and Newmont Mining Corp. (NYSE: NEM).

Yahoo Inc. (NASDAQ: YHOO) is getting a boost from statements from China’s Jack Ma, founder of the Alibaba e-commerce site. Yahoo owns about 40% of Alibaba and Ma has made several offers to buy back that stake, all of which have been rebuffed by Yahoo. Alibaba would acquire all of Yahoo if Ma has his way. Yahoo’s shares opened up 4%, at $13.70, in a 52-week range of $11.09-$18.84. Volume is fairly heavy.

Netflix Inc. (NASDAQ: NFLX) opened higher this morning as well, following a Morgan Stanley analyst’s ‘tactical Buy’ on Netflix shares. The shares were already rated at long-term ‘Overweight’, but the recent dumping of Netflix shares has strengthened the stock’s valuation. The stock’s forward P/E is 17.91, much lower than its trailing P/E of 29.63, and the price/book ratio is 17.82. Not exactly bargain rates, but getting there if investors believe that Netflix’s streaming plan is going to be a winner. Shares opened up nearly 2%, and are trading up about 2.7% a half-hour later, at $116.34, in a 52-week range of $107.63-$304.79. Volume is heavy.

Focus Media Holding Ltd. (NASDAQ: FMCN) reaffirmed its third-quarter guidance and increased its share buyback program from $450 million to $650 million through December 2013. The Chinese media company guided net revenues at $175-$177 million and non-GAAP net income at $68-$70 million. The stock opened up about 3.5% and is trading now at $18.21, up more than 8%, in a 52-week range of $16.54-$37.58. Volume is very heavy.

Newmont Mining Corp. (NYSE: NEM) opened about 2.3% higher this morning on higher gold prices. Gold is up more than $35/ounce, to $1,656/ounce. One analyst thinks that gold prices have hit bottom and are on their way back up, with large miners like Newmont best positioned to benefit. Newmont shares are now trading up nearly 4%, at $65.45, in a 52-week range of $50.05-$71.25. Volume is about normal.

Northern Dynasty Minerals Ltd. (AMEX: NAK) opened nearly flat this morning, but has since risen by about 1.5%. Another gold miner, although a much more prospective stock than Newmont, that is getting a boost from rising gold prices. The stock is trading at $5.44, after tumbling to a new 52-week low this morning of $5.34. The 52-week high is $21.76.

Just for comparison, the Market Vectors Gold Miners ETF (NYSE: GDX) is up about 1.8%, at $56.19, in a 52-week range of $51.10-$66.98. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is up about 1.7%, at $28.62, in a 52-week range of $27.44-$44.86. The SPDR Gold Trust (NYSE: GLD) is up about 1.8% as well, to $160.86, in a 52-week range of $127.80-$185.85.

Paul Ausick