Featuring: AMLN’s benefits from competitor’s blunder; ITW’s Wachovia upgrade; FRP possibly filing bankruptcy; S eludes class-action lawsuit; AAPL’s iPhone shortage; CKR’s Q2 dividend.

Today’s Stocks Alerts include: Amylin Pharmaceuticals Inc. (Nasdaq: AMLN), Illinois Tool Works Inc. (NYSE: ITW), Fairpoint Communications Inc. (NYSE: FRP), Sprint Nextel Corp. (NYSE: S), Apple Inc. (Nasdaq: AAPL) and CKE Restaurants (NYSE: CKR).

Amylin Pharmaceuticals Inc. (Nasdaq: AMLN) Stock Alert – AMLN Shares Boosted as Safety Issues Hit Competitor’s Diabetes Drug

Amylin Pharmaceuticals Inc. (Nasdaq: AMLN) shares jumped last week on rumors that Sanofi-Aventis S.A.’s diabetes drug may pose a safety risk. Reports have it that a study will show use of Sanofi’s Lantus has an increased risk of cancer.

As of December 31, 2008, San Diego-based Amylin markets two medicines to treat diabetes: BYETTA (exenatide) injection and SYMLIN (pramlintide acetate) injection.

While Sanofi-Aventis’ shares declined amid rumors, investors turned bullish on Amylin on hopes that patients will turn to its alternative medication.

Last Friday, Amylin has seen roughly 35,000 options change hands nearly nine times its average daily volume of about 4,000 contracts, with call volume accounting for 80% of the activity, according to report at Schaeffer’s, citing data from WhatsTrading.com. Last Friday’s data also noted the equity’s July 15 call has seen roughly 17,700 contracts change hands on open interest of fewer than 6,000, implying that the majority of today’s volume should translate into new positions on Monday.

With shares climbing 9.1% during last Friday’s trading, the report said the stock is poised to close the month atop its 10-month moving average for the first time since October 2007.

Amylin Pharmaceuticals is a biopharmaceutical company engaged in the discovery, development and commercialization of drug candidates for the treatment of diabetes, obesity and other diseases. In addition to its marketed products, the company is working with Eli Lilly and Co. (Lilly) and Alkermes Inc. to develop exenatide once weekly. The company maintains a discovery research program focused on peptide and protein therapeutics.

In its recent chart, AMLN’s MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock. Trading near its upper Bollinger Band, the stock suggests high price relative to its recent price action.

Illinois Tool Works Inc. (NYSE: ITW) Stock Alert – ITW Shares Up on Wachovia’s Upgrade

Illinois Tool Works Inc. (NYSE: ITW) shares rose last Friday as Wachovia upped its rating on the stock to Outperform from Market Perform, with EPS raised to attributable to its recent cost-cutting efforts Illinois Tool Works climbed 2.41% on significantly above average volume. It also raised its earnings estimates from $45 to $48.

According to a report by Market Intelligence, stock has been showing support around $34.49 and resistance in the $38.23 range, with neutral technical indicators and a neutral 3 STARS (out of 5) hold ranking from S&P.

The analyst reportedly cited recent cost-cutting efforts as reasons for the company’s upgrade.

“After recent management meetings, we have a higher appreciation for the future margin benefit of the company’s internal restructuring initiatives. We are increasing our 2009 EPS estimate to $1.46 from $1.30 and our 2010 EPS estimate to $2.20 from $1.70, and we are also introducing our 2011E $2.75. In general, we anticipate 50% yr/yr earnings growth in 2010 followed by 25% yr/yr earnings growth in 2011. Our increased expectations are driven primarily by an anticipated 350-400bps of operating margin benefit and higher capacity utilization driven by both expected higher industry demand and market share in ITW’s North American automotive, residential construction and packaging consumable market exposure,” said Wachovia analyst in a report.

While the industrial products and equipment maker got the boost, JPMorgan is also expressing a positive view on industrials and materials sectors, lifting it to Overweight.

According to the firm, stocks may fall nearly 10% by the end of summer, giving investors a great opportunity to buy industrials and materials shares.

In a report, JPMorgan’s technical strategist strategist Thomas J. Lee said Standard & Poor’s 500 index, which has surged about 32% since March could fall to as low as 830 by the end of summer, according to a The index closed Thursday at 920.26.

“A correction, even if it is two months in duration, we believe should be used as an opportunity to build positions in Cyclicals rather than a window to buy Defensives,” Lee wrote. He expects the index to rally as high as 1100 by the end of the year.

Illinois Tool Works is a multinational manufacturer of a range of industrial products and equipment. The company has approximately 875 operations in 54 countries, which are aggregated and organized into seven segments: Industrial Packaging, Power Systems & Electronics, Transportation, Construction Products, Food Equipment, Polymers & Fluids, and All Other. In September 2008, ITW announced that it had acquired Avery Weigh-Tronix, a manufacturer of industrial weighing products and systems.

In July 2008, the company acquired the assets of TRYMER polyisocyanurate (PIR) rigid foam business. In June 2008, Illinois Tool Works announced that it completed the acquisition of Quipp, Inc. In March 2008, the company acquired VS Acquisition Holding, the parent company of Vitronics Soltec Corp. In March 2009, KapStone Paper and Packaging Corp. announced the sale of the assets of its Ride Rite business to Illinois Tool Works Inc.

In its recent chart, ITW is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. With share prices currently above the stock’s 13-day moving average, an indication of a bullish trend is generally considered.

FairPoint Communications Inc. (NYSE: FRP) Stock Alert – FRP Could File for Bankruptcy, Recent Filing Says

In a recent filing with the Securities and Exchange Commission, struggling FairPoint Communications Inc. (NYSE: FRP) said it is seeking delay in paying interest, and said bankruptcy is possible if its debt holders don’t give the company breathing room to get back on its feet.

The documents filed with the federal government last week stated if FairPoint is unable to delay payment on some of its debts, then the company “may need to seek alternative restructuring plans” or a bankruptcy proceeding, which, in each case, could negatively impact or completely eliminate the company’s ability to meet its cash interest payment obligations to holders of notes.”

The company revealed financial struggle following its purchase of Verizon’s landlines and Internet services in Vermont, New Hampshire and Maine for $2.3 billion last year. Report has it that poor service to customers, confusing billing and lost e-mail addresses have weighed on the company following its purchase. In the first quarter of this year, the company reportedly lost $8.78 million.

On a brighter spot, the company stressed its hiring of more than 1,000 people in the three states and the increase in broadband availability in Vermont from 65% to 76%.

Company spokesman Beth Fastiggi made the following statement, “We’re making steady progress toward returning to normal operations. Bills are being processed and sent to customers on schedule and with significantly less errors. The volume of calls into our consumer call centers has returned to normal levels, allowing us to answer customer calls in a timely manner.”

FairPoint is a provider of communications services in rural and small urban communities, offering an array of services, including local and long distance voice, data, video and Internet and broadband product offerings.

It operates in 18 states with 1.7 million access line equivalents (including voice access lines and high speed data lines), which include digital subscriber lines (DSL), wireless broadband and cable modem) in service as of December 31, 2008. On March 31, 2008, the company completed the merger with Spinco Inc. (Spinco). Spinco was a wholly owned subsidiary of Verizon Communications Inc. (Verizon) that owned Verizon’s local exchange and related business activities in Maine, New Hampshire and Vermont. Spinco was spun off from Verizon immediately prior to the merger.

In its recent chart, FRP’s MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages. Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.

Sprint Nextel Corp. (NYSE: S) Stock Alert – S Avoids Class-action lawsuit

Telecom giant Sprint Nextel Corp. (NYSE: S) has eluded a national class-action lawsuit alleging it overcharged data-card customers for taxes and then refused to issue refunds, according to a report by WirelessWeek.

In a complaint filed in November 2007, Calif.-based Utility Consumers’ Action Network, a nonprofit advocacy group with more than 30,000 members, alleged Sprint charged extra fees for incoming text messages sent to customers who bought Internet-access cards.

U.S. District Judge Robert Bryan disallowed the possibility of a national class-action suit, arguing the plaintiffs had not proven a class action lawsuit would “outweigh the complexity of such a proceeding,” the report said, citing court documents.

The telecom company may have avoided the national class-action lawsuit, but the report said the judge’s ruling does not prevent the suit from being re-filed as a California-only class action suit created for tax claims.

Sprint Nextel is a holding company that offers a range of wireless and wireline communications products and services for individual consumers, businesses and government customers.

Sprint Nextel conducts its operations through two segments: Wireless and Wireline. Sprint Nextel owns wireless networks and a global long distance, Tier 1 Internet backbone. The company offers digital wireless service to subscribers in all 50 states, Puerto Rico and the United States Virgin Islands under the Sprint brand name utilizing wireless code division multiple access (CDMA) technology. The company offers digital wireless services under its Nextel brand name using integrated digital enhanced network (iDEN) technology. On September 23, 2008, the company closed the transaction with TowerCo Acquisition LLC, under which it sold 3,084 cell sites.

In its recent chart, S is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently above the stock’s 13-day moving average, an indication of a bullish trend is generally considered.

Apple Inc. (Nasdaq: AAPL) Stock Alert – AAPL in Shortage of iPhone, Report Says

Apple Inc. (NSDQ: AAPL) started reporting limited iPhone shortages on Friday in 29 of its 257 stores across the country, according to IFOAppleStore, a Web site that closely watches Apple’s retail business (via Fortune).

The report noted that shortages are only reported on Apple’s Web site in times of scarcity. The site, which was last seen in the summer of 2008, shows exactly which versions of the phones are sold out where.

The report went on to say there were shortages in all states last week, but it seemed that the 16 GB model in white is most affected.

Apple designs, manufactures and markets personal computers, portable digital music players and mobile communication devices and sells a variety of related software, services, peripherals and networking solutions. The company sells its products worldwide through its online stores, its retail stores, its direct sales force and third-party wholesalers, resellers, and value-added resellers. In addition, the company sells a variety of third-party Macintosh (Mac), iPod and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content through the iTunes Store. It sells to consumer, small and mid-sized business (SMB), education, enterprise, government, and creative customers.

In its recent chart, AAPL’s MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. With share prices currently above the stock’s 13-day moving average, an indication of a bullish trend is generally considered. Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading near its upper Bollinger Band, the stock suggests high price relative to its recent price action.

CKE Restaurants (NYSE: CKR) Stock Alert – CKR Declares Fiscal Q2 Dividend

CKE Restaurants (NYSE: CKR) recently announced its board of directors declared a second-quarter dividend of 6 cents per share of common stock, payable on August 31, 2009, to its stockholders of record at the close of business on August 10, 2009. CKE Restaurants owns, operates, franchises or licenses 3,116 quick-service restaurants, which are referred to in the company’s industry as QSRs, primarily under the brand names Carl’s Jr. and Hardee’s.

Prior to its dividend declaration, the Carpinteria, Calif-headquartered company reported its same-store sales fell 5.2% during the four weeks ended June 15, including a 5.5% drop at Carl’s Jr. and a 1.4%increase at Hardee’s.

Separately, the company said its first-quarter profit fell to $14.4 million, or 26 cents a share, from $16.6 million, or 31 cents a share, in the year-ago period, while revenue rose to $446.8 million from $466.2 million last year.

Analysts estimated a quarterly profit of 25 cents a share on revenue of $343.1 million, according to a survey by FactSet Research.

According to CEO Andrew F. Puzder, the weak economy and “fierce competitive pressure designed to attract low guest-check consumers” hurt results. He also said year-earlier fiscal stimulus checks and the current rising unemployment rates hurt results.

CKE’s Carl’s Jr. restaurants are primarily located in the Western United States. The Hardee’s restaurants are located in the Southeastern and Midwestern United States. As of the end of its fiscal 2010 first quarter, CKE Restaurants, through its subsidiaries, had a total of 3,133 franchised, licensed or company-operated restaurants in 42 states and in 14 countries, including 1,205 Carl’s Jr. restaurants and 1,915 Hardee’s restaurants.

In its recent chart, CKR’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

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