Genting, MGM in partnership talks
11:46 PM Posted by MH
KUALA LUMPUR, June 12 (Reuters) - Malaysian gaming group Genting (GENT.KL) is in partnership talks with U.S. casino operator MGM Mirage (MGM.N), the Wall Street Journal reported on Friday."We're just starting to brainstorm about global marketing relationships, strategic ventures and partnerships," MGM Mirage chief executive Jim Murren was quoted by the paper as saying.
Genting recently paid $100 million for a 3.2 percent stake in MGM Mirage amd also bought $100 million of MGM debt. Genting did not have any immediate comment on the Wall Street Journal report.
The investments sparked market speculation that this could pave the way for Genting to participate in MGM's Macau hotel venture.
Genting has long expressed its interest in gaining a foothold in the Chinese gambling enclave.
Speculation was also building that MGM Mirage (MGM.N), under pressure from U.S. gambling regulators and saddled with with about $14 billion in debt, may sell its stake in its Macau joint venture--MGM Grand Macau.
MGM was told last month by gambling regulators in New Jersey that Pansy Ho, the daughter of Macau gambling baron Stanley Ho, was not a suitable partner for its venture in Macau, and ordered the U.S. firm to "disengage" itself from any business dealings with the younger Ho.
But Murren said the two companies have not discussed the possibility of Genting investing in its Macau venture.
The firm will "explore all our options in Macau in light of the" New Jersey gambling report, Murren was quoted by the newspaper as saying.
It will be interesting day for MGM tomorrow, hope this is good news :)
Good Luck
-Market Hunter-
SQNM - Cancer Detectors?
9:39 AM Posted by MH
Volumn and news everything good now, possilble to $4 end of day today
Good luck
http://abstractsearch.asco.org/cgi-bin/ts.pl?index=442064&query=sequenom&opt=any
ONTY news out after market
8:41 PM Posted by MH
Oncothyreon's PX-866 is effective in preclinical model of pulmonary fibrosis
SEATTLE, May 18 /PRNewswire-FirstCall/ - Oncothyreon Inc. (Nasdaq: ONTY - News; TSX: ONY - News) today announced the presentation of data demonstrating the effectiveness of Oncothyreon's PX-866 in a preclinical model of pulmonary fibrosis. The data were presented earlier today by William D. Hardie, M.D., Associate Professor, Pulmonary Medicine, Children's Hospital Medical Center, Cincinnati, Ohio, at the American Thoracic Society International Conference in San Diego, California. PX-866 is a small molecule inhibitor of phosphotidylinositol-3 kinase ("PI-3 kinase"), a key point of control of cellular responses including signaling of cell survival and growth, migration and metabolism.
http://finance.yahoo.com/news/Oncothyreons-PX866-is-prnews-15281967.html?.v=45
These Products Are Not Losing Appeal Even Economy in Recession
8:02 PM Posted by MH
By Deb Riechmann, Associated Press
WASHINGTON — It's not all doom and gloom in the U.S. economy. Some products are bucking the recession and flying off store shelves.
Sales of chocolate and running shoes are up. Wine drinkers haven't stopped sipping; they just seem to be choosing cheaper vintages.
Gold coins are selling like hot cakes. So are gardening seeds. Tanning products are piling up in shopping carts; maybe more people are finding color in a bottle than from sun-worshipping on a faraway beach.
Strong sales of Spam, Dinty Moore stew and chili helped Hormel Foods Corp. post a 6% increase in first quarter sales in its grocery products unit.
Lets think about stocks that performing well in this ugly stock market.
Full articles at http://www.usatoday.com/money/economy/2009-05-17-bucking-the-recession_N.htm
Digitalglobe satelite IPO on Wednesday
8:55 PM Posted by MH
By Phil Wahba
NEW YORK, April 29 (Reuters) - DigitalGlobe Inc (DGI.N), a satellite imagery company serving the military and large corporations, set the terms on Wednesday for its planned $250 million initial public offering and scheduled its pricing for mid-May.
The Longmont, Colorado-based company plans to sell 14.7 million shares at between $16 and $18 each, in a deal led by underwriters Morgan Stanley and JP Morgan, according to a regulatory filing.
DigitalGlobe shares are set to begin trading on the New York Stock on May 14.
DigitalGlobe's main clients include U.S. and foreign defense and intelligence agencies, and commercial customers, such as internet portals, and oil and gas exploration companies, according to the filing.
The company said its products are used in applications such as Google Maps and Microsoft's Virtual Earth.
DigitalGlobe gathers images daily through its two satellites and maintains them in its library. It plans to launch a third satellite in the autumn, which it expects to nearly double its image collection capabilities.
If DigitalGlobe's IPO prices, it will become the fifth IPO in the United States this year, and the fourth with a technology flavor, following those of Chinese online videogame maker Changyou Ltd (CYOU.O), online college operator Bridgepoint Education Inc (BPI.N), and language training company Rosetta Stone Inc (RST.N), all of which priced in April.
The company will receive only a fraction of the IPO's proceeds, with about 90 percent of the shares in the offering being sold by existing shareholders.
Morgan Stanley currently owns 36.7 percent of the company, a percentage that will drop to 32 percent if the IPO goes ahead.
While DigitalGlobe sales rose 82 percent to $275.2 million in 2008, net income fell by nearly half to $53.8 million because of a tax expense, according to the filing.
The company plans to list on the New York Stock Exchange under the symbol "DGI." (Reporting by Phil Wahba; Editing by Steve Orlofsky)
올해 5번째 IPO 라네요.
http://www.reuters.com/article/marketsNews/idUSN2941291920090429
Buffett's Berkshire squeezed by losses
1:15 AM Posted by MH
The conglomerate posts much lower sales and a net loss on continued hits to its derivative-related insurance contracts.NEW YORK (CNNMoney.com) -- Berkshire Hathaway Inc. reported a quarterly loss Friday that fell from year-ago results on steep losses in the value of its derivative contracts.
Berkshire (BRK.A) said it lost $1.5 billion in its first quarter, compared to a $1 billion profit during the same period a year ago.
Operating income, which excludes investment gains and losses, dropped 12% to $1.7 billion, or $1,100 per share.
But the company's net worth, as measured by its total assets, slid only 2.6%. That's better than the 6% that Chief Executive Warren Buffett predicted at the company's annual shareholders' meeting last week.
In 2008, Berkshire's net worth declined nearly 10% -- its biggest ever since Buffett took hold of the company -- as the Omaha, Neb., firm's investment portfolio was hit by plunging global stock markets.
Revenue fell 9.5% to $22.8 billion.
워런 버핏이 '투자 귀재'? 1분기에 150억달러 손실
'투자의 귀재'로 불리던 워런 버핏이 운영하는 투자사 버크셔 해서웨이가 올 1분기에 150억달러의 천문학적 손실을 봤다고 8일(현지시간) 발표했다.
버크셔 해서웨이가 분기 손실을 낸 것은 지난 9.11 테러로 막대한 보험손실이 발생했던 지난 2001년 3분기 이후 이번이 처음이다. 1분기 수입도 지난해 252억달러에서 228억달러로 9.5% 감소했다.
버크셔 해서웨이는 에너지기업 코노코 필립스에 대한 투자 및 파생금융상품 관련 상각으로 이같은 손실을 기록했다고 밝혔다. 버크셔 해서웨이는 1분기 동안 보유중인 코노코 필립스의 주식 7천990만주 가운데 1천370만주를 매각했으며, 버핏은 지난해 석유와 가스 가격이 거의 최고 수준에 도달했을 때 코노코 필립스의 주식을 대량 매입한 것을 실수로 인정한 바 있다.
YCMnet 어드바이저스의 수석 투자전략가인 마이클 요시카미는 "워런 버핏도 완벽하지 않다"며 "버핏은 실수로부터 일부 이익을 끌어내기 위해 노력하고 있다"고 말했다.
사상최악의 투자 손실로 '투자의 귀재'라던 그의 닉네임이 무색해지며 명망도 크게 손상을 입은 양상이다.
/ 박태견 기자
세상을보는 다른 눈 "뷰스앤뉴스" 【http://www.viewsnnews.com】
투자의 귀제라 불리는 워렌버핏도 150억달러의 손실을 냈다고 하는군요.
저희가 작년에 잃었던(?) 돈에 비하면 엄청나네요 ㅎㅎ
귀제라 불리는 사람도 저렇게 많은 돈을 날리셨는데 저희들은 다행(?)이라고 생각하면서
용기를 냅시다. 모두 모두 화이팅!!
-Market Hunter-
Vonage Holdings Corp. Reports First Quarter 2009 Results
10:31 AM Posted by MH
We should see $3-5 end of month?
Buyout 가능성도 있습니다.
Today Target $1
http://finance.yahoo.com/news/Vonage-Holdings-Corp-Reports-prnews-15163919.html?.v=1
KKR to Buy InBev Korea Unit for $1.8 Billion
9:42 PM Posted by MH
KFN news
By Kyung Bok Cho
May 7 (Bloomberg) -- KKR & Co. agreed to buy Anheuser-Busch InBev NV’s South Korean beer unit for $1.8 billion, MoneyToday reported, citing an industry official it didn’t identify.
AB InBev and KKR signed a contract yesterday and plan an official announcement soon, the Korean-language Internet news provider said.
The Belgian brewer is seeking to sell $7 billion of assets to help repay $45 billion of borrowings taken on to fund last year’s acquisition of Anheuser-Busch Cos. The company has already sold assets in China and the U.S. and sold bonds to trim the debt, and is considering selling “about five or six” businesses in total, Chief Executive Officer Carlos Brito said at annual shareholders meeting on April 28.
Anheuser-Busch InBev’s $7 billion bridging loan has already been reduced by $3.5 billion following a $5 billion bond sale. The brewer also sold a 19.9 percent stake in China’s Tsingtao Brewery Co. to Asahi Breweries Ltd. for $667 million.
Oriental Brewery’s beer sales by volume rose 6.1 percent in 2008, helped by growth of at least 10 percent in its Cass brand, Anheuser-Busch InBev said in its 2008 annual report. That growth rate was more than double the South Korean market’s, the Belgian brewer said, helping it to win market share from rival Hite Brewery Co., the only other Korean producer.
Hite’s share of South Korea’s beer market fell to 58.2 percent in 2008 from 59.2 percent in 2007, the company has said, citing the Korea Alcohol and Liquor Industry Association.
Nomura Holdings Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc are arranging syndicated loans for KKR, according to the MoneyToday report.
국내 2위 맥주회사인 오비맥주 인수자로 미국의 사모펀드인 콜버그크래비스로버츠(KKR)가 최종 결정됐다고 월스트리트저널(WSJ)지가 소식통을 인용해 보도했다.
이로써 오비맥주 인수전은 일단락됐지만 경영권보다는 투자에 관심을 보이는 사모펀드 속성상 KKR의 2∼3년 내 재매각이 점쳐지고 이번 인수전의 강력한 인수후보였던 롯데가 맥주시장에 직접 진출하겠다고 밝힘에 따라 향후 국내 맥주 시장은 흥미진진하게 됐다.
이로써 국내 맥주시장을 놓고 하이트맥주, KKR, 롯데가 경쟁을 벌이게 될 전망이다.
http://www.fnnews.com/view?ra=Sent1001m_View&corp=fnnews&arcid=0921644252&cDateYear=2009&cDateMonth=05&cDateDay=04
By Kyung Bok Cho
May 7 (Bloomberg) -- KKR & Co. agreed to buy Anheuser-Busch InBev NV’s South Korean beer unit for $1.8 billion, MoneyToday reported, citing an industry official it didn’t identify.
AB InBev and KKR signed a contract yesterday and plan an official announcement soon, the Korean-language Internet news provider said.
The Belgian brewer is seeking to sell $7 billion of assets to help repay $45 billion of borrowings taken on to fund last year’s acquisition of Anheuser-Busch Cos. The company has already sold assets in China and the U.S. and sold bonds to trim the debt, and is considering selling “about five or six” businesses in total, Chief Executive Officer Carlos Brito said at annual shareholders meeting on April 28.
Anheuser-Busch InBev’s $7 billion bridging loan has already been reduced by $3.5 billion following a $5 billion bond sale. The brewer also sold a 19.9 percent stake in China’s Tsingtao Brewery Co. to Asahi Breweries Ltd. for $667 million.
Oriental Brewery’s beer sales by volume rose 6.1 percent in 2008, helped by growth of at least 10 percent in its Cass brand, Anheuser-Busch InBev said in its 2008 annual report. That growth rate was more than double the South Korean market’s, the Belgian brewer said, helping it to win market share from rival Hite Brewery Co., the only other Korean producer.
Hite’s share of South Korea’s beer market fell to 58.2 percent in 2008 from 59.2 percent in 2007, the company has said, citing the Korea Alcohol and Liquor Industry Association.
Nomura Holdings Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc are arranging syndicated loans for KKR, according to the MoneyToday report.
국내 2위 맥주회사인 오비맥주 인수자로 미국의 사모펀드인 콜버그크래비스로버츠(KKR)가 최종 결정됐다고 월스트리트저널(WSJ)지가 소식통을 인용해 보도했다.
이로써 오비맥주 인수전은 일단락됐지만 경영권보다는 투자에 관심을 보이는 사모펀드 속성상 KKR의 2∼3년 내 재매각이 점쳐지고 이번 인수전의 강력한 인수후보였던 롯데가 맥주시장에 직접 진출하겠다고 밝힘에 따라 향후 국내 맥주 시장은 흥미진진하게 됐다.
이로써 국내 맥주시장을 놓고 하이트맥주, KKR, 롯데가 경쟁을 벌이게 될 전망이다.
http://www.fnnews.com/view?ra=Sent1001m_View&corp=fnnews&arcid=0921644252&cDateYear=2009&cDateMonth=05&cDateDay=04
CNBC What Pullback? Stock Rally Still Has Legs, Strategists Believe
10:56 PM Posted by MH
One of the hottest debates on the Street these past three or four weeks is how much further the bull can run before it runs out of steam.
Many traders believe a pullback is inevitable and for some, this week is as good as any for that to happen, given recent low volume of trading.
But several strategists say in notes that they see stocks still moving higher. Citigroup's stock strategist Tobias Levkovich warns the market's naysayers could be proven wrong, and this could be an above average bear market rally.
On Monday, the Dow continued to ride high, up triple digits, while the S&P 500 has crossed 900, a level last seen on Jan. 8. The financial sector was one of the best performers, up nearly 4.9 percent.
Goldman Sachs strategists said they see progress on a number of economic fronts and are now boosting their exposure to cyclical stocks. Laszlo Birinyi says, if you look at history, it looks like the market's still moving higher.
Citigroup's Levkovich, chief U.S. equities strategist, said the investment community is "almost shocked" by the near 30 percent rise in the S&P 500 since early March.
He said the case is building for a second half recovery, and many investors are ignoring the fundamentals. Since early March, financials have risen 74 percent; cyclical consumer discretionary have jumped 46 percent; industrials gained 44 percent and materials are up 41 percent. Meanwhile, the defensive sectors are underperforming.
More From CNBC.com
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Levkovich said a few metrics have encouraged him, including the prospects for a likely earnings recovery for late 2009 and 2010, and an improvement in bank lending standards, likely by late 2009. Another positive is a likely moderation in inventory reduction, which would create a production pickup and that would help earnings.
Also, a higher stock market could also boost consumer confidence. For that reason, the market has a good chance of seeing a better-than-average bear market rally.
The average one-year bear market rally off of the bottom has risen more than 43 percent and it's likely, there is still room to go higher. Another factor is that there are lots of investors who missed the moves and are sitting with large cash hordes.
Laszlo Biriniy says the market's 53-day gain and 10 percent move above the 50-day moving average are second only to the market's performance in 1933. He also says in a note that the net advances over the past 10 days are the third strongest ever, but he sees a case for even more gains.
For instance, only 29 percent of the S&P 500 are above their 200-day moving average. But the most stunning indicator he mentioned was that the number of days to the first correction in previous bull runs is 194 days, and we are only at day 53. One factor that takes away from his thesis is that almost half of the S& P are now up 50 percent from their 52-week lows.
Goldman stock strategists, meanwhile, boosted their exposure to cyclicals because of signs of improvement in several key areas. The strategists say corporate access to credit is improving, housing is showing signs of stabilization and there is a decline in the write downs and provision at financial firms.
They also said that the patterns in previous bear market bottoms would support a heavier cyclical tilt. They acknowledge that they are late to buying cyclicals, but they said they knew that would be the case because the market tends to punish early rotations into cyclicals. Their year end target is 940 on the S&P.
And finally, I talked to Brown Brothers Harriman's Brian Rauscher, a long-time bear who turned bullish in early March. He was concerned last month that the market could be showing signs of moving too far, too fast. But today, I asked him in an email if he's still thinks the market will go higher. He answered: "May have take a deep breath to get through 900 (a day or so), but this market is moving higher.."
Questions? Comments? marketinsider@cnbc.com
BlackBerry Curve overtakes iPhone as most popular smartphone
2:16 PM Posted by MH
Chalk it up to the fact that the Curve is available on the four biggest U.S. carriers, not to mention a two-for-one sale on Verizon Wireless. Also in the top five for the first quarter of 2009: The Storm and the T-Mobile G1.
The NPD Group just released its U.S. smartphone sales numbers for Q1, and according to their numbers, RIM had BlackBerrys in three of the top five positions, and managed to topple the iPhone 3G from the top of the list.
Despite its early launch woes, the touchscreen BlackBerry Storm appears to be selling strongly, coming in a No. 3 on NPD's list behind the Curve and the iPhone 3G.
After the Storm comes the ever-popular BlackBerry Pearl—which, like the Curve, is available on all four major U.S. carriers—followed by the Android-powered G1 on T-Mobile.
So, how did the Curve manage to overtake the iPhone 3G? Well, as the NPD group notes, availability on all the big carriers always helps (the iPhone is, of course, still only on AT&T), as well as its $99 (with a new two-year contract) price tag. Meanwhile, Verizon Wireless probably helped boost Curve sales with its "buy one, get one free" promotion, according to NPD.
And here's a potentially worrying trend for Apple: the NPD found that RIM's share of the smartphone market rose a solid 15 percent to a full 50 percent, while both Apple and Palm (which didn't land a handset in the top 5) both saw their shares fall 10 percent.
Of course, it could be that smartphone shoppers are holding off on both iPhones (given that a new model might be announced as early as next month) and Palm handsets (seeing as the red-hot Pre will likely go on sale in a matter of weeks).
Then again, never underestimate BlackBerry, which still has some of the best smartphones in the business and has price and availability on its side, whereas the cheapest, AT&T-only iPhone 3G remains at a somewhat lofty $199 (with contract).
http://tech.yahoo.com/blogs/patterson/48631
The NPD Group just released its U.S. smartphone sales numbers for Q1, and according to their numbers, RIM had BlackBerrys in three of the top five positions, and managed to topple the iPhone 3G from the top of the list.
Despite its early launch woes, the touchscreen BlackBerry Storm appears to be selling strongly, coming in a No. 3 on NPD's list behind the Curve and the iPhone 3G.
After the Storm comes the ever-popular BlackBerry Pearl—which, like the Curve, is available on all four major U.S. carriers—followed by the Android-powered G1 on T-Mobile.
So, how did the Curve manage to overtake the iPhone 3G? Well, as the NPD group notes, availability on all the big carriers always helps (the iPhone is, of course, still only on AT&T), as well as its $99 (with a new two-year contract) price tag. Meanwhile, Verizon Wireless probably helped boost Curve sales with its "buy one, get one free" promotion, according to NPD.
And here's a potentially worrying trend for Apple: the NPD found that RIM's share of the smartphone market rose a solid 15 percent to a full 50 percent, while both Apple and Palm (which didn't land a handset in the top 5) both saw their shares fall 10 percent.
Of course, it could be that smartphone shoppers are holding off on both iPhones (given that a new model might be announced as early as next month) and Palm handsets (seeing as the red-hot Pre will likely go on sale in a matter of weeks).
Then again, never underestimate BlackBerry, which still has some of the best smartphones in the business and has price and availability on its side, whereas the cheapest, AT&T-only iPhone 3G remains at a somewhat lofty $199 (with contract).
http://tech.yahoo.com/blogs/patterson/48631
Top 20 Best-Performning Small-Cap Stocks Year-to-Date
11:35 PM Posted by MH
Ranking Company (Ticker) Year-To-Date Change
1 Borders Group Inc (NYSE:BGP) 715.0%
2 Providence Service Corp/The (NASDAQ:PRSC) 600.0%
3 Pier 1 Imports Inc (NYSE:PIR) 440.5%
4 Ruby Tuesday Inc (NYSE:RT) 396.8%
5 Dendreon Corp (NASDAQ:DNDN) 360.9%
6 DuPont Fabros Technology Inc (NYSE:DFT) 325.6%
7 Stein Mart Inc (NASDAQ:SMRT) 321.2%
8 Dollar Thrifty Automotive Group Inc (NYSE:DTG) 316.5%
9 Ampal American Israel (NASDAQ:AMPL) 300.0%
10 Boise Inc (NYSE:BZ) 293.0%
11 Evergreen Energy Inc (NYSE:EEE) 282.8%
12 Isle of Capri Casinos Inc (NASDAQ:ISLE) 256.9%
13 Palm Inc (NASDAQ:PALM) 254.4%
14 Valassis Communications Inc (NYSE:VCI) 247.0%
15 O'Charleys Inc (NASDAQ:CHUX) 245.0%
16 Entropic Communications Inc (NASDAQ:ENTR) 232.0%
17 Globalstar Inc (NASDAQ:GSAT) 230.1%
18 Smith & Wesson Holding Corp (NASDAQ:SWHC) 213.2%
19 American Apparel Inc (AMEX:APP) 208.0%
20 MIPS Technologies Inc (NASDAQ:MIPS) 204.5%
Full article http://www.nasd100.com/2009/05/top-20-bestperformning-smallcap-stocks-yeartodate.html
Overbought Levels and Lengths
8:38 PM Posted by MH
When we look at streaks of overbought days going back to 1928, however, the current 10-day period is nothing but a blip on the screen. As shown below, there have been thousands of similar or more extreme streaks of overbought days, so just because we're overbought now doesn't mean we can't stay overbought.
http://bespokeinvest.typepad.com/bespoke/2009/05/overbought-levels-and-lengths.html
Strategic Hotels & Resorts: Bill Gates Vs. Goldman Sachs (BEE)
2:58 PM Posted by MH
Old Article but according to article, Bill Gates likes to investing in hotels, he may buy the whole company soon? 오래된 정보긴 하지만 빌게이츠가 BEE 사에 관심이 있었네요, 빠쁘신 분이 호텔/카지노 경영을 하실순 있을지 모르겠지만, 지금 이 시장 상황과 추세로 봐선 가능성이 있을지도 모르겠습니다.
Following billionaires, activist investors, and even opportunists has been a difficult job in recent weeks. Activists can blame poor management decisions, but they cannot blame management over stock prices in a bear market. This creates an interesting situation with Strategic Hotels & Resorts, Inc. (NYSE: BEE) as we have Bill Gates opposing Goldman Sachs.
Strategic Hotels & Resorts is in a tough spot right now as anowner and operator upscale and luxury hotels in North America andEurope. It is also a REIT and it is no secret that REIT’s have beenunder pressure as the need for capital puts any themat risk since they need to borrow to operate and continue payingdividends. Its current dividend yield today is roughly 15%.
In a filing last night, Bill Gates’ Cascade Investments has become anactivist investor in Strategic Hotels & Resorts. Gates’ totalstake is now 4.069 million shares. Assuming no changes to the June 30levels, this makes Gates one of the top ten holders of this stock.
The filing noted that the Gates’ entity may "engage in discussions with theIssuer’s board of directors and management concerning the business andstrategic direction…." and "may engage in discussions with othershareholders of the Issuer to discuss matters of mutual interest…."
So if Bill Gates is going activist, you’d wonder why Goldman Sachs cutestimates and targets on Strategic in a broad lodging sectordowngrade. Goldman Sachs took its prior $8.20 target down to $5.00 as the outlook for travel and lodging and entertainment spending is weakening rapidly and now expected to go well into 2009.
Strategic Hotels & Resorts is in a tough spot right now as anowner and operator upscale and luxury hotels in North America andEurope. It is also a REIT and it is no secret that REIT’s have beenunder pressure as the need for capital puts any themat risk since they need to borrow to operate and continue payingdividends. Its current dividend yield today is roughly 15%.
In a filing last night, Bill Gates’ Cascade Investments has become anactivist investor in Strategic Hotels & Resorts. Gates’ totalstake is now 4.069 million shares. Assuming no changes to the June 30levels, this makes Gates one of the top ten holders of this stock.
The filing noted that the Gates’ entity may "engage in discussions with theIssuer’s board of directors and management concerning the business andstrategic direction…." and "may engage in discussions with othershareholders of the Issuer to discuss matters of mutual interest…."
So if Bill Gates is going activist, you’d wonder why Goldman Sachs cutestimates and targets on Strategic in a broad lodging sectordowngrade. Goldman Sachs took its prior $8.20 target down to $5.00 as the outlook for travel and lodging and entertainment spending is weakening rapidly and now expected to go well into 2009.
5 things to know for the week ahead
1:54 PM Posted by MH
1. Chrysler gets a “new lease on life”
President Barack Obama on Thursday pledged to give Chrysler LLC "a new lease on life," by which he meant ushering the automaker into a bankruptcy reorganization that essentially puts Italy's Fiat SpA in charge.
It was a classic case of government coercion and arm-twisting. And here’s what really happened: The lenders with Chrysler exposure who have received Troubled Asset Relief Program (TARP) money -- lenders the government now basically controls as a result of their agreeing to accept that money -- all agreed to essentially give up their rights as secured lenders to allow the “surgical bankruptcy” to proceed.
What does that mean for the other lenders? Independent lenders, mostly institutions and hedge fends, however, did not agree to allow this to happen, and so this “bankruptcy” will most likely wind up in court and drag on for years and years.
2. Meanwhile . . . reality
Meanwhile, in the real world, despite the pie-in-the-sky promise of a “new lease on life” for Chrysler, and presumably the economy, we still have the following:
One, too much debt in an economy that is not producing enough real income to service it, while two, the government, doing its level best to ignore number one, continues to try to force still more debt into a system that is both unable (and unwilling) to accept it, even as three, the government is attacking lenders and bondholders for standing up for their rights to be paid back.
3. Stress test?
On top of all that, what should have been the one slam dunk for the government among all the weirdness, the farce that is known as “stress tests” for the banks, has been delayed. What has the world come to when federal regulators and bank examiners can’t agree on the right fictional outcome for these fictional bank “stress tests”? It’s the movie equivalent of a major studio delaying its summer blockbuster until the fall so they can reshoot the ending to appeal to early screening focus groups.
4. RIMM developers conference
Most technology companies do some sort of conference or presentation to announce new products: Apple (AAPL) has Macworld, Research In Motion (RIMM) has a developers conference that starts on Monday.
Analysts are expecting RIMM to announce some new products. Last year the company announced the Storm and Bold phones. This year the company is expected to announce the Niagara, a phone similar to the Bold but made for the Verizon network. According to tech geeks, this phone is supposed to be pretty sweet as it will use the Storm’s operating system and it should be ready for shipment in June.
Research firm AmTech expects RIMM will get a positive response from this conference. Now if they could only name the conference something catchy: RIMM World, Around the RIMM, On the RIMM, Circling the RIMM . . . you get the idea.
5. 'Sell in May and go away'
There’s a popular saying on Wall Street, “Sell in May and go away.” This year it seems to be picking up steam among market pundits. Why? Because the market has just had its best two-month run since 1938.
Minyanville’s chief Todd Harrison wrote a column this week: “Sell in May and Go Away.” Here is an excerpt from that:
“I believe the current rally will prove to be a massive stock tease. We monitored the cumulative imbalances as they built through the years, and it would be myopic to assume we’ve swallowed the bitter pill in its entirety. While there are two sides to every trade, we must remember that social mood and risk appetites shape financial markets.”
Harrison went on to list five things that worry him for the month: swine flu, technical factors, problems in Pakistan, Ken Lewis and the stress test results.
Meanwhile, Minyanville Professor Prieur du Plessis also took a look at the old “sell in May and go away” axiom in his piece, “The Best Time to Invest in Equities.”
“A study of the pattern in monthly returns reveals that the 'bad' periods of the S&P 500 Index are quite distinct, with five of the six months from May to October having lower average monthly returns than the six months of the good periods. Interestingly, May -- the first month of the bad patch -- is the only exception."
New loans for car dealers - but will they help?
12:43 PM Posted by MH
The Small Business Administration is temporarily expanding its definition of 'small' to make more loans available to auto dealers, but potential borrowers face many obstacles.
NEW YORK (CNNMoney.com) -- Starting early next week, larger businesses will temporarily be eligible to apply for loans backed by the Small Business Administration, a move aimed at getting help to besieged auto dealers and industry suppliers.
Through September 2010, the SBA will raise the size standard of what counts as a "small" business, allowing slightly bigger companies to participate in its flagship 7(a) lending program. Typically, auto dealers haven't qualified for the program because most have annual sales in excess of $29 million, the SBA's cap for that industry. But from now through the end of the 2010 fiscal year, the SBA will disregard the revenue cap and use other criteria for eligibility. Companies with less than $3 million in annual income and a net worth of less than $8.5 million will qualify for the loans.
Though this new criteria is aimed at auto dealerships, the SBA anticipates that more than 70,000 small businesses nationwide from a variety of industries will now qualify for its 7(a) loans.
But it's not clear whether the new eligibility rules will actually make significant new financing available for auto businesses in need. There are a few hitches.
First, auto dealerships typically rely for their financing needs on automotive financing entities such as Ford Motor Credit Corporation, General Motors Acceptance Corporation (GMAC) and Chrysler Financial. None of the major automotive financiers are currently on the list of lenders certified by the SBA to make agency-backed loans.
Also, the most common type of loan an auto dealership takes out is what's known as "floorplan" financing, which allows the dealer to borrow money to buy vehicles from a manufacturer and repay the loan as the cars sell. The SBA's 7(a) loans are strictly for working capital and can't be used for vehicle inventory financing. The National Automobile Dealers Association is lobbying President Obama's administration to lift that constraint.
Finally, any 7(a) applicant still has to persuade a lender to actually make the loan - and right now, few banks want to take the risk of lending to a struggling business. The SBA's 7(a) program backed only half as many loans in the first three months of 2009 as it did a year earlier.
Auto dealerships are also fighting against deeper challenges that access to business loans won't solve. Nationally, the United States lost about 900 car dealerships last year, according the National Automobile Dealers Association.
"The two biggest obstacles we currently face have nothing to do with our own financing, but rather, our marginal-credit customers' ability to obtain financing, and even more importantly, our good-credit customers' willingness to buy new GM vehicles," says Eric Lash, owner of Lash Chevrolet in Johnstown, Ohio. Lash Chevrolet has a staff of 25 and typically sells 50 to 100 cars a month.
Lash hadn't heard about the SBA's new loan availability, but he doesn't think it would help his business much.
"Many [dealers] are not making ends meet, and the best way to solve that is to sell more cars. To sell more cars, we need customer confidence and the ability to get those customers financed," he says. "All of the SBA loans they can give will not help me or any other dealer overcome the obstacles we deal with every day."
NEW YORK (CNNMoney.com) -- Starting early next week, larger businesses will temporarily be eligible to apply for loans backed by the Small Business Administration, a move aimed at getting help to besieged auto dealers and industry suppliers.
Through September 2010, the SBA will raise the size standard of what counts as a "small" business, allowing slightly bigger companies to participate in its flagship 7(a) lending program. Typically, auto dealers haven't qualified for the program because most have annual sales in excess of $29 million, the SBA's cap for that industry. But from now through the end of the 2010 fiscal year, the SBA will disregard the revenue cap and use other criteria for eligibility. Companies with less than $3 million in annual income and a net worth of less than $8.5 million will qualify for the loans.
Though this new criteria is aimed at auto dealerships, the SBA anticipates that more than 70,000 small businesses nationwide from a variety of industries will now qualify for its 7(a) loans.
But it's not clear whether the new eligibility rules will actually make significant new financing available for auto businesses in need. There are a few hitches.
First, auto dealerships typically rely for their financing needs on automotive financing entities such as Ford Motor Credit Corporation, General Motors Acceptance Corporation (GMAC) and Chrysler Financial. None of the major automotive financiers are currently on the list of lenders certified by the SBA to make agency-backed loans.
Also, the most common type of loan an auto dealership takes out is what's known as "floorplan" financing, which allows the dealer to borrow money to buy vehicles from a manufacturer and repay the loan as the cars sell. The SBA's 7(a) loans are strictly for working capital and can't be used for vehicle inventory financing. The National Automobile Dealers Association is lobbying President Obama's administration to lift that constraint.
Finally, any 7(a) applicant still has to persuade a lender to actually make the loan - and right now, few banks want to take the risk of lending to a struggling business. The SBA's 7(a) program backed only half as many loans in the first three months of 2009 as it did a year earlier.
Auto dealerships are also fighting against deeper challenges that access to business loans won't solve. Nationally, the United States lost about 900 car dealerships last year, according the National Automobile Dealers Association.
"The two biggest obstacles we currently face have nothing to do with our own financing, but rather, our marginal-credit customers' ability to obtain financing, and even more importantly, our good-credit customers' willingness to buy new GM vehicles," says Eric Lash, owner of Lash Chevrolet in Johnstown, Ohio. Lash Chevrolet has a staff of 25 and typically sells 50 to 100 cars a month.
Lash hadn't heard about the SBA's new loan availability, but he doesn't think it would help his business much.
"Many [dealers] are not making ends meet, and the best way to solve that is to sell more cars. To sell more cars, we need customer confidence and the ability to get those customers financed," he says. "All of the SBA loans they can give will not help me or any other dealer overcome the obstacles we deal with every day."
Stress! Citigroup Needs $10 Billion
1:40 AM Posted by MH
Stress test failure Citigroup (C) needs $10 billion more in capital say regulators, according to WSJ.
Under the best case scenario, the megabank has a razor thin $500 million capital cushion. That tells you something right there. And of course, the company is already a double recipient of TARP capital.
Meanwhile, the bank continues to appeal and dispute the findings, arguing, among other things, that the government’s pessimistic outlook of credit card defaults is out of line.
Oh, and for some perspective: Citigroup’s market cap is only $16 billion these days, so a $10 billion raise is a huge amount that would be both difficult to come by and dilutive to shareholders. Business Insider
Under the best case scenario, the megabank has a razor thin $500 million capital cushion. That tells you something right there. And of course, the company is already a double recipient of TARP capital.
Meanwhile, the bank continues to appeal and dispute the findings, arguing, among other things, that the government’s pessimistic outlook of credit card defaults is out of line.
Oh, and for some perspective: Citigroup’s market cap is only $16 billion these days, so a $10 billion raise is a huge amount that would be both difficult to come by and dilutive to shareholders. Business Insider
Karen Finerman recommendation on CNBC's Fast Money
12:05 AM Posted by MH
I do not believe her but it is better than nothing ^^
New, More Severe Stress on Banks
6:54 PM Posted by MH
Unemployment is still rising: Even before the impact of mass layoffs at Chrysler and GM, this week’s numbers show no end to the rise in joblessness. The Fed’s “worse case” scenario in its stress test — of 8.9 percent unemployment for 2009 — could be reached far sooner than previously expected.
Historic decline in the U.S. economy is still unfolding: This week’s announcement that the U.S. economy contracted at the annual rate of 6.1 percent in the first quarter digs a deeper hole in the government’s “worse case” GDP assumption of 3.3 percent; it will take a miracle to achieve a GDP decline of less than 4 percent.
The real estate decline is continuing: On Monday, the S&P Case Schiller index showed that home prices are still falling, down 18.8 percent in a year. Beginning this month, payments on teaser-rate ARMs will be start adjusting higher in large quantities, boosting defaults and foreclosures. Meanwhile, the decline in commercial real estate continues to accelerate as key default rates surge. As a result, regional banks, overloaded with commercial real estate loans, are suffering far greater stress than most expected.
5 cheap stocks to buy in May
9:04 PM Posted by MH
But there's still plenty of upside potential in the market right now, especially among certain cheap stocks.
Like a gardener in spring, it is time to plant our seeds. What will be cash crops this summer?
Given that a new business cycle is upon us, growth stocks have the advantage. Defensive names are likely to underperform from here on out. Buying a growth stock that is also inexpensive gives you a double dose of good strategy.
I've got five of these inexpensive gems from the experts at InvestorPlace for you.
First, take a look at how cheap stocks performed in the last recession in 2002. At that time, stocks priced below $10 a share doubled or tripled in value over the next few years. That's why there are no cheap stocks in my list of Top 10 Stocks to Avoid for the Rest of the Year.
In terms of sectors, China is at the top of my list. If you think the rally has been impressive in the U.S., take a look at emerging markets. Performance overseas has helped erase the memory of a very painful 2008. Two of my best cheap stocks are China stocks.
I also like biotech. This sector has performed very well so far this year and should continue to do so for the remainder of the year. The current swine flu scare reminds us all the importance of research in dealing with ailments that could stop our economy cold.
Here the names for right now:
Cheap stock #1: Yanzhou Coal Mining Co. (YZC)
According to a report this past weekend on 60 Minutes, China is opening coal-fueled power plants at a rate of one per week. I suspect you cannot pull the stuff out of the ground fast enough to satisfy the demand.
While that fact is fantastic news for United States coal miners, that dynamic is positively stunning for China coal miner Yanzhou Coal Mining Co. (YZC). InvestorPlace's resident China expert, Robert Hsu, recommends the stock to his readers based on the impressive growth potential of the company.
With significant, proven reserves of coal, owning YZC at its current price below $10 per share is like owning a bit of Fort Knox. Sit back and wait for the company to extract and sell the product on the open market. It is as close to a sure thing as you will find in the market in my opinion.
Cheap Stock #2: Yingli Green Energy (YGE)
Concerned about the pollution caused by coal-burning power plants? Hedge your China bet with an investment in Yingli Green Energy (YGE). Another favorite of Robert Hsu, YGE is a leader in the development, manufacture and sales of solar energy products.
Solar has taken it on the chin with the collapse in oil prices. The perception is that the expensive transition to alternative energy requires excessively high crude prices. In the short term, that may be true, but investing is all about the long term. I would view the selling in YGE (the stock has fallen from the mid $20s to just over $5 per share) as an opportunity to acquire a position at a very cheap price. Long-term growth prospects remain very encouraging.
Cheap stock #3: Marvell Technology Group (MRVL)
Louis Navellier understands growth better than most. His multiple portfolios include a plethora of stocks that are poised for impressive future growth. It is that growth that is expected to lead the way during an economic recovery. One of the best places to find that growth is in the technology space. Even more specific would be to hone in on the semiconductor industry. Sales declines appear to have reached a nadir. A new cycle of technology buying can be expected during the next business cycle.
One of Louis' favorite names in the space is Marvell Technology Group (MRVL). The stock has already doubled in value in anticipation of a recovery, yet still trades for approximately $10 per share. Louis believes that price is still too cheap, and he rates the stock a B or Buy.
Cheap stock 4: Activision Blizzard (ATVI)
InvestorPlace's Nancy Zambell spends her time searching for buried treasures. One of the names on her buy list is Activision Blizzard (ATVI). The company is the leader in the videogame space with four out of the top 10 games, including Guitar Hero in 2008.
The recession has hurt demand for video games, as such purchases tend to be discretionary. But the longer term prospects of ATVI are outstanding. The stock just recently passed the $10 range, but it's cheap. Zambell thinks the stock has the potential to double from current prices. For those willing to take on a bit more risk, she offers another cheap stock here.
Cheap stock #5: Emergent Biosolutions, Inc. (EBS)
Emergent Biosolutions is a biotech that specializes in developing treatments and vaccines for immune-related illnesses including anthrax, tuberculosis and Hepatitis B. Shares of EBS have fallen significantly during this bear market, but the company's products have moved closer to market. That makes this the right time to buy stocks like this. Investors can now own EBS for less than $10 per share. That is cheap, says Louis Navellier. He rates EBS a buy.
Is Dendreon a likely takeover target?
12:23 PM Posted by MH
The stock analysts like everything they've seen about Dendreon's new data on the prostate cancer vaccine Provenge. They like it so much, some think the biotech has made itself an appealing buyout target among the hungry pharma companies roaming the world for new takeovers.
"If you look at a product like Provenge that could be on the market by mid next year, that's a product that could be instantly accretive to earnings," Joe Pantginis, an analyst for Merriman Curhan Ford & Co., told Reuters. Of course, there's a small matter of FDA approval to work through, first. But as the Wall Street Journal wryly notes, biotech companies with worse prospects have been gobbled up.
Nasdaq is probing why Dendreon's shares suddenly tanked just before it announced positive data for Provenge.
- read the report from the Wall Street Journal
"If you look at a product like Provenge that could be on the market by mid next year, that's a product that could be instantly accretive to earnings," Joe Pantginis, an analyst for Merriman Curhan Ford & Co., told Reuters. Of course, there's a small matter of FDA approval to work through, first. But as the Wall Street Journal wryly notes, biotech companies with worse prospects have been gobbled up.
Nasdaq is probing why Dendreon's shares suddenly tanked just before it announced positive data for Provenge.
- read the report from the Wall Street Journal
