Brokerage Firm Ratings +Price Target (Updated 01-Jun-10 09:33 ET)

Upgrades

Sort alphabetically | Sort by brokers

Company	Ticker	Brokerage Firm	Ratings Change	Price Target
Alon USA Energy	ALJ	Caris & Company	Below Average » Average	$6.75
Frontier Oil	FTO	Caris & Company	Below Average » Average	$10 » $14
Holly	HOC	Caris & Company	Below Average » Average	$25 » $27
Tesoro	TSO	Caris & Company	Below Average » Average	$12.50
Valero Energy	VLO	Caris & Company	Below Average » Average	$14 » $18
Sunoco	SUN	Caris & Company	Below Average » Average	$28
Visa	V	Stifel Nicolaus	Hold » Buy	$86
Coca-Cola Ent	CCE	Stifel Nicolaus	Hold » Buy	$30
AOL	AOL	The Benchmark Company	Hold » Buy	$25
Priceline.com	PCLN	KeyBanc Capital Mkts	Hold » Buy	$260

Downgrades

Sort alphabetically | Sort by brokers

Company	Ticker	Brokerage Firm	Ratings Change	Price Target
American Eagle	AEO	Caris & Company	Buy » Above Average	$23 » $20
National Grid	NGG	HSBC Securities	Overweight » Neutral
Transdigm Group	TDG	Oppenheimer	Outperform » Perform
Goodrich	GR	Oppenheimer	Outperform » Perform

Coverage Initiated

Sort alphabetically | Sort by brokers

Company	Ticker	Brokerage Firm	Ratings Change	Price Target
THL Credit	TCRD	BB&T Capital Mkts	Buy	$15
Finish Line	FINL	Phoenix Partners Group	Buy	$22
China Marine Food	CMFO	Brean Murray	Buy	$9
THL Credit	TCRD	Stifel Nicolaus	Buy	$14
DynaVox	DVOX	Jefferies	Buy	$18

Coverage Reit/Price Tgt Changed*

Sort alphabetically | Sort by brokers

Company	Ticker	Brokerage Firm	Ratings Change	Price Target
Apple	AAPL	Broadpoint AmTech	Buy	$320 » $340
DJSP Enterprises	DJSP	Northland Securities	Outperform	$16.25 » $10
Altisource Portfolio Solutions	ASPS	Northland Securities	Outperform	$28 » $32
AutoZone	AZO	Morgan Joseph	Buy	$186 » $215

Good news for the global economy: China is letting wages rise in an effort to rebalance its growth

posted on May 31, 2010 at 11:48 am

The U.S. financial markets are closed today and so is JubakPicks.com for Memorial Day.

But I’ve got a ton of China-related posts for the next few days so I thought I’d slip this one in today, May 31.

Workers struck Honda’s transmission factory in Foshan, China, ten days ago.

The most amazing thing about the strike, which forced Honda to suspend production at its four joint-venture assembly plants in China, is that we know about it at all.

Most strikes in China don’t get much space in the country’s government-controlled press. They’re typically hushed up and resolved in a day or two under pressure from the government on workers and employers. That practice is designed to prevent news of a strike for higher wages and better working conditions at one factory from fueling nationwide demands by workers.

In the case of the Honda strike, however, the government allowed relatively extensive coverage in state-controlled newspapers and on the Internet for the first few days of the strike. As the strike dragged on, Beijing gradually clamped down on reporting on the strike. But the amount of initial coverage and the extended duration of the strike without official action are signs of a change of direction in China’s economic policy.

What’s the change?

Some part of China’s leadership is clearly serious about rebalancing the Chinese economy to increase the emphasis on domestic consumer purchasing and to decrease the reliance on exports and infrastructure for economic growth. China’s economy is almost a mirror-image of the U.S. economy where 70% of the economy is based on consumer spending. In China consumers account for something like 30% to 40% of GDP.

A rebalancing of the Chinese economy that increased demand from Chinese consumers for the goods of other countries would be good news for the global economy. The global economy remains too dependent on buying by debt-strapped U.S. consumers for its long-term health.

One way to increase domestic demand would be to let wages rise. And Beijing seems to be committed to allowing wages to rise in its export industries. For blue-collar manufacturing workers in the export zone around Hong Kong wages have doubled in the last five years.

Honda’s most recent offer to workers at its transmission plant is for a 24% pay increase to 1,910 yuan ($280) a month. Trainees at the factory now make $132 a month and more experienced workers $220 a month. (As of May 31 the company said most workers had accepted this offer.)

Don’t look for wage increases like this to destroy the low-cost labor base that makes China’s export machine work. While there are no good nationwide statistics on productivity in China, the data suggests that productivity growth is keeping up with wage increases.

What we’re seeing instead is a government decision to let more of those productivity gains flow through to workers in the form of higher pay rather than to corporate bottom lines.

China still has a long way to go to match the thinking of Henry Ford who rocked U.S. capitalism in 1914 by paying his workers $5 a day. (That’s equal to about $110 a day in 2008 dollars.) Ford explained his decision by saying that he wanted his workers to be able to afford the cars they built. The Ford Model T, introduced in 1908, initially sold for $825. Its price dropped every year as Ford’s company refined its assembly lines.

The five-door Honda Fit sells for $15,000.

http://jubakpicks.com/

Commodities Round up-Commodities: Spain's downgrade pressures oil

Date: Tuesday 01 Jun 2010

Crude oil prices fell on Friday, in light trading, as Spain’s debt downgrade reignited fears about Europe’s debt crisis.

Oil for July delivery fell 58 cents to settle at $73.97 a barrel on the New York Mercantile Exchange. US and UK markets were closed Monday for a holiday weekend.

Europe's debt woes have been pushing down crude prices for several weeks with traders keen to liquidise positions.

On Friday Fitch Ratings agency cut its rating on Spain’s sovereign debt by one notch to AA+ from the highest possible rating of AAA. The move follows the Spanish parliament’s new €15bn package of tough austerity measures. News that Spain has had its credit rating downgraded a notch sent US stocks into the red on Friday and capped a grim month for shares on Wall Street.

Also weighing on oil prices was concern about high levels of oil inventory after the Energy Information Administration’s most recent report showed another rise in crude inventories.

Gold shrugged off earlier losses to finish the week a touch higher, with Spain’s debt downgrade providing a last minute push.

Comex gold for August delivery rose 60 cents to settle at $1215.00 an ounce after trading between $1203.80 and $1217.30. Silver for July delivery slipped 5 cents to $18.42 an ounce. Platinum for July fell $3.50 to $1,549.40 an ounce.

Currencies Round up-Euro holding above support despite weak data

Date: Tuesday 01 Jun 2010

The decision by ratings agency Fitch to strip Spain of its “Triple A” rating late on Friday wasn’t entirely unexpected, but coming as it did soon after the Spanish governments success in passing its austerity budget, it was a somewhat fitting ended to a turbulent week for Spain and its banking sector.

The fact is the likelihood of the budget being implemented is extremely slim being that it was only passed by 1 vote, with abstentions by the Catalan nationalists.
The catalyst for the downgrade was the austerity measures themselves, which Fitch believes will cause growth to shrink way short of government forecasts. With Spanish banks under pressure to come clean on the level of their bad debts and Spanish bond yields heading back towards their May highs it surely is only a matter of time before Moody’s follows suit.

Euro zone economic confidence also worsened in May as concerns over the sovereign debt problems continued to weigh on sentiment. Despite these problems the Euro has slipped back, but has remained above its recent lows against the dollar so far.

While this may have to do with the fact that both the US and UK markets were closed for their spring bank holiday’s it doesn’t change the fact that the Euro continues to remain vulnerable as mixed messages continue to emanate from both European governments as well as the European Central Bank.

New ECB member Patrick Honohan welcomed the new bond purchase program as an “important” new weapon in the bank’s arsenal, while Germany’s Axel Weber and Bank of Italy’s Mario Draghi have both called for an end to the program as soon as possible.

The pound has continued to hold up reasonably well despite the problems faced by the UK coalition government over the weekend and the resignation of the new Chief Secretary of the Treasury, over expenses claims. Against a basket of currencies the pound is trading near to its highest levels for a week. Manufacturing PMI data out today for May is expected to show a figure of 57.5.

Concerns over China’s economy are also weighing on sentiment, as data showed manufacturing growth had slowed by more than expected, while the Reserve Bank of Australia decided to keep interest rates on hold at 4.5%.

EURUSD – six consecutive monthly declines is the longest losing sequence the single currency has experienced since 1999, just after its inception, and the 1.2135 level remains the proverbial line in the sand preventing a move towards the 1.1700 level, and 2005 lows.
For now this key 50% Fibonacci level has kept the declines at bay for now, but with rallies getting shallower the risk still remains for an eventual break.
There is channel resistance just above 1.2360, while the Euro needs to see a break above the 1.2450/60 level for a move towards 1.2700 to unfold.

GBPUSD – despite the problems of the UK government over the weekend the pound has held up reasonably continuing to rise against a basket of currencies.
The key support level remains around the 1.4230/50 level and remains the key barrier to any further sterling declines in the short term. The 1.4000 level remains a key support on a monthly close, and despite last weeks break out above 1.4500/20 level not following through as quickly as the odds remain in favour of a move towards 1.4780 and even 1.4850. However a break below trend line support 1.4440/50 area could well undermine this scenario.

EURGBP – the Euro continues to be weighed down by sovereign debt concerns with rallies above 0.8500 continuing to be rebuffed. The support around the 2 year lows at 0.8400 continues to prevent further Euro declines. A break below these lows and we could be looking at a break lower towards 0.8250. A move and close back above 0.8520 retargets the 0.8610/20 area.

USDJPY – the yen has weakened further over the weekend after a split in the Japanese govt coalition. Japans Social Democratic Party has exited the tri-partite coalition after a difference of opinion with its partners over a US military base.
This weakness has seen the dollar break above the 200 day moving average as well the 91.20 resistance area.
A close above these levels around 91.20 has the potential to re-target the 92.80 level. Interim support can be found around the 90.70/80 initially and then 90.20.

Asia Market Report: China growth fears spark declines

Date: Tuesday 01 Jun 2010

The Nikkei declined 0.58% on Tuesday on increasing fears about political stability in Japan while weaker than expected data on Chinese manufacturing also rattled confidence.

China’s Purchasing Managers’ index fell to 53.9 in May from a reading of 55.7 in April, data from the Federation of Logistics and Purchasing said.

Meanwhile concern about Prime Minister Yukio Hatoyama’s future also weighed on sentiment after polls showed his approval rate had fallen sharply.

The stronger yen hurt demand for exporters such as Toyota, down 0.8% in Tokyo while Sony was off 1.5%. Fast Retailing, owner of the Uniqlo clothing line, fell 0.6%.

Defensives such as The Tokyo Electric surged 4.25%.

The Nikkei 225 index closed down 56 points at 9,712 in Tokyo.

The Hang Seng fell 1.36% after data showed Chinese manufacturing had grown less than expected.

Shares in metal giant Jiangxi Copper fell 1.3% in Hong Kong on fears that demand for its products will decline. Aluminium Corp tumbled 3%.

Elsewhere real estate fell sharply on concern about slower growth in China. Shares in China Overseas Land dropped 2.9%.

Retailer Esprit fell 3.4% on persistent fears about the consumer outlook in Europe.

The Hang Seng fell 268 points to 19,497 in Hong Kong.

IACH: Information Architects Signs Agreement to Distribute Discount Prescription Cards and Discount Pet Prescription Cards Offering Consumers up to 55

Information Architects Signs Agreement to Distribute Discount Prescription Cards and Discount Pet Prescription Cards Offering Consumers up to 55% Savings on the Cost of Prescription Drugs

Press Release Source: Information Architects On Tuesday June 1, 2010, 8:00 am
FORT LAUDERDALE, FL--(Marketwire - 06/01/10) - Information Architects Corporation (Pinksheets:IACH - News) is pleased to announce they have signed an agreement with National Benefit Builders, Inc. The agreement gives IACH the right to distribute nationally NBBI's unique discount prescription cards and discount pet prescription cards. The cards allow consumers the benefit of average savings of 15% on brand name drugs and 55% discounts on generic prescriptions. The cards are accepted at 85% of pharmacies nationwide including: Target, CVS, Rite Aid, Costco, Kmart and many, many others.

Under the terms of the agreement IACH will distribute the discount prescription cards and discount pet prescription cards at no cost to consumers, then IACH will receive a fee for each prescription the card is used to fill.

Started in 1994 National Benefits Builders, Inc. has become the largest wholesaler of prescription cards in the United States. They offer 24/7 customer service for all cardholders and are rated A plus by the Better Business Bureau.

Commenting on this latest IACH agreement, William Craig, IACH acting CEO, stated, "We are very pleased to have aligned ourselves with such a prestigious organization as NBBI and feel the benefits to IACH go beyond the revenue that this wonderful partnership can create, but will also help IACH expand its distribution channels into the multi-billion dollar consumer pet market."

About IACH, Information Architects has re-identified itself as a distribution and marketing company through a number of distribution channels. IACH is focused in three major market segments:

1. Clean Tech, through its wholly owned subsidiary IA Green;2. Medical Devices;3. Pet Products.

IACH has identified several additional strategic acquisitions and senior management is dedicated to continue to deploy its redefined business model. The company will update its shareholders with these new exciting opportunities in the upcoming weeks.

Watch List for Tuesday - SRGL

New big pick is SRGL.

You might remember SRGL. I did my first initial alert on this company back in late Feb at $0.815. A few weeks later SRGL hit a high of $2.03 representing a gain of 149% from my initial alert!!!

SRGL is currently off from it's high and the overall trend still looks strong.

View chart: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=srgl&sid=0&o_symb=srgl&freq=1&time=8

The price of gold is still holding above $1,214 an oz and I think you will agree with me that SRGL could go higher as gold goes higher.

If SRGL tests old highs it may break it and go even further!

SRGL recently announced they acquired 100% ownership of a total of 21 claims. These claims provide a total of total of approximately 12,440 acres spanning the townships of Beardmore Area (Kitto Township), Dorothea and Sandra townships.

The President of SRGL has stated, "We are very excited with the results from our initial trenching. The high grade gold and copper assay suggests that we have multiple zones to target and to expand further on our KRK West Property."
SRGL's major property is their KRK West Property. They own 50% of this property. This zone is 15 squares miles.

Back in March, Rimini Investments Initiated Coverage on Source Gold Corp. With a $2.73 Long Term Target Price.

Start your research on SRGL, as this one doubled very fast in the past and it may happen again very soon. Start at:http://www.sourcegoldcorp.com/

London midday report: Triple digit fall for Footsie

The Footsie suffered a triple digit fall in the morning session, and although BP’s share price plummet is a major contributor to thee blue-chip index’s fall, plenty of other leading shares are also in the red.

BP is suffering more woe as attention focuses on the future of chief executive Tony Hayward, with the US government increasingly frustrated by BP's failure to cap the leak. The cost of the clean-up has now reached $1bn, BP added in its latest update.

Reports that growth in China’s manufacturing output tailed off in May has hit metal prices and consequently mining companies such as Kazakhmys, BHP Billiton, Antofagasta, Lonmin and ENRC .

Prudential is going well even though – or maybe because - the life group’s $35.5bn bid for American International Group’s Asian business looks in disarray after the US insurer refused to renegotiate the price down to nearer $30bn.

“Following detailed discussions with AIG's management and advisers, Prudential had proposed a revision to the terms that would have reduced the value of the consideration for the acquisition of AIA by Prudential Group plc to US$30.375bn,” it said Tuesday. That will make the EGM on 7 June especially interesting as many shareholders look set to vote against the deal. It was hoped a reduced price might convince the sceptics.

Elsewhere in the financial sector banks are not reacting well to the European Central Bank’s (ECB) warning last night that there may have to be another round of provisions by European banks to cover bad loans this year. The ECB reckons there is nearly €200bn of bad loans sitting in European banks' balance sheets. Barclays is the biggest faller but Royal Bank of Scotland is also hard hit.

Responding to speculation in the week-end press, hotels and coffee shop group Whitbread has said it has no plans to raise funds through an equity issue. The Independent newspaper had run a story on Sunday which suggested that the Premier Inn and Costa Coffee owner is planning to raise Ł100m this summer through a private placement.

Drugs behemoth AstraZeneca is mulling over a Complete Response Letter (CRL) from the US Food and Drug Administration (FDA) in respect of its new drug application for Axanum.

Also in pharmaceuticals, Shire is deliberating over whether to file a patent infringement suit against Zydus Pharmaceuticals USA, which is planning to produce a generic version of Shire’s Lialda tablets.

Energy provider Scottish & Southern Energy (SSE) has decided not to splash out on acquiring a substantial stake in the electricity distribution networks currently owned by EDF Energy Networks. SSE, in partnership with Canadian pension fund Borealis, was one of four parties thought to be in the running to acquire the networks

Rail and bus operator FirstGroup today confirmed the disposal of GB Railfreight to Europorte, a wholly owed subsidiary of Eurotunnel, for Ł31m. Aberdeen based FirstGroup, which posted a 10% drop in full-year profit in May as it grappled with the recession and higher fuel costs, said the disposal was in line with its strategy.

Irish no-frills airline Ryanair swung strongly back into the black last year and proposed a €500m special dividend with the possibility of another €500m in the three years time. Pre-tax profits for the year to March came in at €341 against a loss of €181m. Adjusted profits rose by 204% to €319m allowing for write-downs on its stake in rival Aer Lingus. Revenues were 2% higher at €2.99bn against €2.94bn.

Goodfellas pizza and Fox’s biscuits group Northern Foods traded “solidly” during the last full-year, but profit still fell 28% and it said challenging markets conditions are likely to persist. Profit before tax and restructuring items for the 53 weeks to 3 April fell to Ł34m from Ł47.5m in 2009 on revenue up a touch to Ł977m from Ł975.2m. Underlying profit, which excludes net pension financing, rose to Ł39.2m from Ł39m.

Baltic Oil Terminals, which owns oil product terminals Russia’s Baltic enclave of Kaliningrad, move to profit last year as it shifted its focus to higher margin activities.

Shares in oil and gas explorer Pantheon Resources fell back after drilling at a well in east Texas was deferred until July 2010 due to the well operator Vision Resources’ assessment that it will profit from a reduction in rig rates and drilling costs if it waits longer.

Valiant Petroleum was having better luck with its drilling, getting a better than expected result on its West Tybalt prospect.

FTSE 100 - Risers
Prudential (PRU) 563.50p +4.06%
Scottish & Southern Energy (SSE) 1,068.00p +1.52%
Experian Group (EXPN) 624.50p +0.97%
Johnson Matthey (JMAT) 1,546.00p +0.85%
United Utilities Group (UU.) 543.50p +0.74%
Severn Trent (SVT) 1,206.00p +0.67%
Legal & General Group (LGEN) 79.50p +0.57%
ARM Holdings (ARM) 247.60p +0.57%
Imperial Tobacco Group (IMT) 1,810.00p +0.56%
Randgold Resources (RRS) 6,020.00p +0.50%

FTSE 100 - Fallers
BP (BP.) 418.65p -15.39%
Barclays (BARC) 292.10p -4.26%
TUI Travel (TT.) 227.80p -4.16%
Kazakhmys (KAZ) 1,136.00p -4.14%
BHP Billiton (BLT) 1,845.00p -3.55%
Investec (INVP) 475.40p -3.00%
Antofagasta (ANTO) 860.50p -2.88%
Lonmin (LMI) 1,636.00p -2.85%
Eurasian Natural Resources (ENRC) 975.50p -2.84%
Old Mutual (OML) 110.80p -2.81%

ASYI is Achieving Profitability for the Airline Industry!

Who knows a winning business model better then the online giant? How about the former head of Google's Corporate Development Group, who has invested over $5 Million dollars in this revolutionary software platform set to take the $500 Billion Dollar Airline industry to Profitability!

Dear Traders Looking for an "Edge":

How could an industry with half a trillion dollars in business result in No Profit? We've found the one company that has the solution...

AI Systems, inc. (ASYI.OB) is a technology company that has developed a proprietary business platform for the commercial airline industry called jetEngine™, a new paradigm for strategic airline management that enhances the planning and operational capabilities of airlines through the holistic integration of these activities in real time.

It takes 60-200 separate systems 3 months to create a publishable airline schedule that addresses fleet, maintenance and crew needs. jetEngine™ takes only 60 seconds to generate a flyable schedule!

ASYI.OB's unique approach integrates the marketing, fleet, crew, & maintenance schedules which enables airlines to adapt rapidly to changes in environment, seize market opportunities faster than the competition, and react effectively to competitor actions.

jetEngine™ approaches planning in an entirely new, faster and more efficient way than has ever been available before.

It carries out the business strategy and network planning functions simultaneously allowing Airline Planning to deliver to Operations an integrated flight, crew and maintenance schedule that can generate greater profits and ensure a more efficient use of assets.

Quickly building new schedules to adapt to, and take advantage of, Emerging Opportunities!

ASYI.OB "Delivering Profitability to the Airline Industry" AI Systems' business platform jetEngine™ technology is comprised of systems and mathematical algorithms capable of generating significant performance improvements in an airline’s strategic planning, sales and distribution, and operating capabilities, which is intended to result in significant bottom line benefits for airline companies. The core jetEngine system technology is the backbone of an integrated business platform solution that is expected to revolutionize the airline industry. The expected benefits of jetEngine to an airline are: 1. Strategic planning with advanced modeling and simulation capabilities that has been designed to create executable business plans in minutes instead of weeks or months, supported by fully feasible and integrated fleet, crew and maintenance schedules with a more accurate predictive interpretation of how the airline can compete more effectively; 2. Competitive revenue management using dynamic pricing and content-based strategies to increase an airline’s control over its distribution and sales; and 3. Integrated operations which resolves scheduling logistics by utilizing a continuous forward review model that can show within minutes a number of feasible solutions to multiple irregular events and unforeseen changes to the airline’s operating environment, based on business policies and priorities. These benefits are expected to translate directly to improving the airline’s profitability: 1. Operational efficiencies, due to the drastic reduction of the business planning cycle time and more efficient use of resources, only achieved through integrated operations and organizational alignment; 2. Significant cost savings from reduced systems, infrastructure, labor, and sales and distribution costs; 3. More profitable revenue and additional revenue opportunities; and 4. Ability to respond dynamically and strategically to competitive market forces in real time, to maximize profits, as well as to reduce contingency costs and mitigate enterprise risks and uncertainty. jetEngine™ is comprised of two suites of products that focus on enhancing the business planning and operational areas of an airline: jetEngine Business Planning Suite: A suite of planning modules that enhance the strategic planning capabilities of airlines through the integration of route, fleet, crew, and maintenance schedules jetEngine Integrated Operations Suite: A suite of operational modules that integrate the schedule planning, crew planning, revenue management and integrated operations functions in real time. Unlike any other system in the market today, jetEngine™ simplifies and improves the business planning and operational processes of an airline by applying AISystems’ unique business planning approach: the holistic integration of activities traditionally broken down into sub-problems and performed by several departments. AI Systems (ASYI.OB) Business Model is based in recurring license fees. With AISystems at various stages of discussion with a number of airlines worldwide and channel partners regarding the implementation of jetEngine, NOW is the time to consider an investment in ASYI.OB! The company has already beta-tested it's sytem at a Major International Carrier that does in excess of $2 billion in annual revenue! Don't wait for the Next Major Carrier to Sign Up before you start Researching ASYI.OB! http://www.aisystems.org/ http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ASYI&selected=ASYI

DOLV new pick!!

Featured Company - DOLV

DOLV — Dolat Ventures, Inc. OTCMB Announces DOLV as our new pick!! You've heard them say the old saying "all that glitters isn't gold" We'll they're right! It's DIAMONDS!!! And DOLV has found diamonds. Lots of them!! And is extracting them DAILY hauling in thousands of dollars worth every single day!!! ICE ICE BABY!! Ice, rock, bling, whatever you want to call it. Make no mistake about it. Diamonds are a huge business getting a ton of attention lately as diamond prices are on the rise, and DOLV is the perfect way to play this. With only 6.6 million shares outstanding according to the latest SEC filings, DOLV is well positioned to easily and quickly soar in price. DOLV website: http://www.dove-diamonds.com/ Recent DOLV developments: April 19 PR: Daily capacity 20 tons per day. 7-10 karats in diamonds per day. Consider karats are valued at between $3,000 and $30,000 each!! That's $21,000 to $300,000 in diamonds being found every day!! http://finance.yahoo.com/news/Dolat-Ventures-Millennium-iw-3954148296.html?x=0&.v=1 April 21 PR: Diamond price hike. Verified by the Diamond Trading Company. Outlook for more price increases and long term bullish. http://finance.yahoo.com/news/Dolat-Ventures-Announces-iw-2352493447.html?x=0&.v=1 April 23 PR: Announcement to increase capacity drastically in light of their successful finds and huge price increases in diamonds. http://finance.yahoo.com/news/Dolat-Ventures-Announces-iw-3149571865.html?x=0&.v=1 May 14 PR: Full scale wash plant purchased. Capacity now 90 tons per hour vs. 20 tons per day before. How high is that going to increase the value of diamond finds per day? 10 fold? 20 fold? 50 fold? http://finance.yahoo.com/news/Dolat-Ventures-Millennium-iw-3545255949.html?x=0&.v=1 More from May 14 PR.... "We expect an enormous increase the output of our diamond production," said Mr. Dovid Hauck, President of Dolat Ventures. "This new system is going to completely modernize our current operations and allow us to continue to grow significantly and we expect it fully up and operational by the middle of June." "We are very excited about this next step and Sierra Leone is really at the start of a great commodity boom and we believe that Dolat Ventures and Millennium Mining will play a large role in the increased development in the mining sector," Mr. Hauck added. Recent Price Market Capitalization Outstanding Shares Quotation $0.33 $2,178,000 as of May 28, 2010 6,600,000 as of Sept 14, 2009 OTC.QB

London open:Pru's new bid turned down by AIG

Date: Tuesday 01 Jun 2010

City sources predict FTSE 100 will open down 15 points from its previous close of 5,188.

Stocks to watch

Prudential’s bid for American International Group’s Asian business looks in disarray after the US insurer refused to renegotiate the $35.5bn offer down to nearer $30bn. “Following detailed discussions with AIG's management and advisers, Prudential had proposed a revision to the terms that would have reduced the value of the consideration for the acquisition of AIA by Prudential Group plc to US$30.375bn,” it said Tuesday.

Responding to speculation in the week-end press, hotels and coffee shop group Whitbread has said it has no plans to raise funds through an equity issue. The Independent newspaper had run a story on Sunday which suggested that the Premier Inn and Costa Coffee owner is planning to raise Ł100m this summer through a private placement.

Irish no-frills airline Ryanair swung strongly back into the black last year and proposed a €500m special dividend with the possibility of another €500m in the three years time. Pre-tax profits for the year to March came in at €341 against a loss of €181m. Adjusted profits rose by 204% to €319m allowing for write-downs on its stake in rival Aer Lingus. Revenues were 2% higher at €2.99bn against €2.94bn.

In the Press

More than Ł6bn was wiped from the market value of BP last night after the oil giant’s latest failure to control its oil spill in the Gulf of Mexico provoked mounting anger in the US. With markets in London closed, BP’s German-listed shares plunged almost 8% to €5.39 (Ł4.56) after the US Government warned that the leak from the blown-out Macondo well may not be stopped until a relief well can be drilled in August. The share price collapse was equivalent to a slide in BP’s UK-listed market value of Ł6.5bn, from Ł93bn on Friday to Ł86.5bn,the Times reports.

BP was given permission to drill in the Gulf of Mexico after submitting documents promising it was equipped to deal with a spill 10 times larger than the current leak. The papers will be a further embarrassment to the oil company, as it currently struggles to contain the spill spewing an estimated 19,000 barrels into the ocean daily, the Telegraph reports.

The European Central Bank sent tremors through financial markets last night when it warned that banks in the eurozone nations faced having to write off another €195bn in bad loans over the next 18 months. In what it predicted would be “a second wave” of loan losses, the ECB forecast a fresh flood of red ink for eurozone banks that already have written off €238bn (Ł200bn) since the banking crisis erupted, the Times reports.

The Bank of England is sitting on an Ł8bn net profit from its Ł200bn quantitative easing (QE) fund. A sharp increase in gilt prices over the past two weeks, as traders pull money out of European investments and into UK government debt, has swung the Bank's QE fund into profit for the first time in months. The news underlines the fact that Britain has unexpectedly established itself as a safe haven destination during the European debt crisis, the Telegraph reports.

Companies in Britain’s dominant service sector suffered disappointing sales and tumbling profits in the three months to May, heightening fears about the solidity of the recovery. Hotels, bars and restaurants suffered a sharp and unexpected drop in business between February and May as consumers reined in their spending, the CBI’s latest snapshot of the services sector will show today, the Times reports.

US close

Dow Jones closed down 122 points at 10,136. Nasdaq gave back 20 at 2,257 while the S&P 500 shed 13 at 1,089. The fall by the Dow meant the blue chip index suffered its worst May in 70 years, falling by 7.9%, and endured its worst month overall since February 2009. Nasdaq lost 8.3% in May, its worst month since November 2008, while the S&P 500 had its worst May since 1962.