Archive for August, 2009
(NWS) News Corp Splits Asia Unit
News Corp. (NWS) recently announced a split in its Asian broadcast business, the Star TV, into three independent units, namely, Star India, Star Greater China and Fox International Channels. The restructuring of the Asian business will not only enhance the operational efficiencies...
19Aug2009 | vitalstocks | 0 comments | ContinuedStock markets disconnected from economy
I yesterday published a short post on Chinese equities and said: “… it looks if more downside is in store for the Shanghai Composite Index and it would not come as a surprise if lower Chinese equities serve as the catalyst for a well-deserved pullback in global stock markets.”...
15Aug2009 | prieur | 0 comments | Continued(BMY) Bristol-Myers Squibb Co. announced Medarex Acquisition Cleared Review
Bristol-Myers Squibb Co. (BMY) yesterday announced that the regulatory review period for its cash tender offer to acquire Medarex Inc. (MEDX) has expired. On July 28, 2009, Bristol-Myers had initiated an offer to buy all outstanding shares of common stock of Medarex for $16...
14Aug2009 | vitalstocks | 0 comments | Continued(AAP) Advance Auto Profits Up – Free cash flow rose 18%
Advance Auto Parts (AAP) reported a 7% rise in second-quarter profit, fueled by addition of new stores and strong sales at existing outlets as more customers got their old cars fixed instead of buying new ones. Quarterly income was $80.3 million, or 83 cents per share, compared...
14Aug2009 | vitalstocks | 0 comments | Continued(KR) Inventories Still Falling – Analyst Blog
Total inventories across all levels of business fell for the 10th straight month in June. The 1.1% decline was bigger than the 0.9% decline expected by the consensus of economists, and follows a downwardly revised 1.2% drop (was down 1.0%) in May. Inventories can be a big swing-factor...
14Aug2009 | vitalstocks | 0 comments | Continued(GPS) Gap Revamps Denim Line – strong balance sheet with adequate liquidity and no outstanding debt
Gap Inc. (GPS), a premier international specialty retailer, plans to re-launch its denim line to bring back customers and revive its sagging sales. The move is a part of a major revamp process of the self-branded denims for men and women that have seemingly lost its mass appeal...
14Aug2009 | vitalstocks | 0 comments | Continued(ALTR) Altera Cuts Jobs – will eliminate approximately 3% of its workforce in order to streamline its cost structure
Last week, Altera Corp. (ALTR) announced that it will eliminate approximately 3% of its workforce in order to streamline its cost structure. The company’s headcount currently stands at 2700. The eliminations will take effect in the third quarter and result in severance charges...
14Aug2009 | vitalstocks | 0 comments | Continued(IBM) IBM Set to Outperform – We remain positive on the company’s long-term growth prospects
The drivers behind our Outperform rating on International Business Machines (IBM) are the company’s strong fundamentals, substantial free cash flow, strong earnings momentum, improving operating performance, effective restructuring initiatives and new growth opportunities. IBM...
14Aug2009 | vitalstocks | 0 comments | Continued(HPQ) Hewlett-Packard Company will purchase the AIG Systems Solutions
Mphasis Ltd., an Indian subsidiary of Hewlett-Packard Company (HPQ) will purchase the AIG Systems Solutions Pvt. Ltd unit of American International Group Inc. (AIG). The deal has yet to clear legal formalities and financial details of the transaction were not disclosed. While...
14Aug2009 | vitalstocks | 0 comments | Continued(WYE) FDA’s Delay Cramps Wyeth
The delay in the US Food and Drug Administration’s (FDA) decision to approve Wyeth’s (WYE) Prevnar 13 (PV13) vaccine is a major blow to the company. Wyeth had filed for FDA approval of the pediatric vaccine PV13 on March 31, 2009. In May 2009, the FDA granted the New Drug...
14Aug2009 | vitalstocks | 0 comments | Continued(MDT) Medtronic Launches New Device
Medtronic Inc. (MDT) recently launched a new vertebral body replacement device, T2 SCEPTOR Distractible End Cleats System, for the replacement of a collapsed, damaged or unstable vertebra. The product is used in the thoracic and lumbar spine region (T1-L5) of the body in combination...
14Aug2009 | vitalstocks | 0 comments | Continued(EP) El Paso Stays Neutral – has proved reserves of nearly 2.5 trillion cubic feet
Texas-based El Paso Corporation (EP) is the largest pipeline operator in the United States. Its pipeline assets are located in close proximity to major consuming markets as well as regions where exploration and production of hydrocarbons is very active. This benefits the company...
14Aug2009 | vitalstocks | 0 comments | Continued(PKG) Packaging Corporation of America – Sales slipped 11% year-over-year
Packaging Corporation of America (PKG) recently posted second-quarter adjusted earnings of 28 cents per share, which was below the previous year’s 34 cents but well ahead of the Zacks Consensus Estimate of 16 cents. Sales slipped 11% year-over-year. Company Description Packaging...
14Aug2009 | vitalstocks | 0 comments | Continued(INT) World Fuel Services Corporation – stellar 5-year average ROE of 16.31%
World Fuel Services Corporation (INT) easily beat the Zacks Consensus Estimate for the second quarter as its land fuel products segment saw record gross profit. The company has surprised 4 quarters in a row by an average of 54.17%. INT has a stellar 5-year average return on equity...
14Aug2009 | vitalstocks | 0 comments | Continued(APOL) Apollo Group, Inc. – increase Total Degree Enrollment by 22%
Apollo Group (APOL) continues to top Wall Street estimates and has once again sent analysts scrambling to catch up. Company Description Apollo Group, Inc. has been providing higher education to working adults for over 25 years. They operate through their subsidiaries, the University...
14Aug2009 | vitalstocks | 0 comments | Continued(TSCO) Tractor Supply Company – Revenue was up 5% from last year
Tractor Supply Company (TSCO) just jumped beyond a key level of resistance at $45 after reporting strong second-quarter results in late July. Company Description Tractor Supply Company operates retail farm and ranch stores in the United States. The company was founded in 1938...
14Aug2009 | vitalstocks | 0 comments | Continued(HON) Honeywell Gets Aero-Engine Deals
Honeywell International Inc. (HON) announced that it has been awarded an additional option year on a contract from the U.S. Army to improve performance and extend the life of the AGT1500 turbine engine that powers the M1 Abrams tank. The Total Integrated Engine Revitalization...
14Aug2009 | vitalstocks | 0 comments | Continued(ANF) Abercrombie & Fitch Disappoints – net sales of the company during the quarter decreased 23%
Abercrombie & Fitch Co. (ANF), a leading international specialty retailer, reported disappointing second quarter results with a net loss of $26.7 million or -30 cents per share compared to a net income of $77.8 million or 87 cents per share in the year-earlier quarter. The...
14Aug2009 | vitalstocks | 0 comments | Continued(BAC) BofA Sues Colonial
Bank of America Corp. (BAC) sued Colonial Bancgroup Inc. (CNB) to protect its claim on certain loans after the troubled company refused to return more than $1 billion it owed to Freddie Mac (FRE). Bank of America filed the lawsuit at a federal court in Florida, asking for a...
14Aug2009 | vitalstocks | 0 comments | Continued(EMC) EMC’s Results Above Expectations – fourth quarter is expected to be the strongest quarter of the year
EMC Corp.’s (EMC) second quarter results were better than analysts’ expectations. Although results were down from the year-ago period, it increased sequentially due to a greater stability in corporate IT spending. Revenues came in above the Street estimate of $3.20 billion...
14Aug2009 | vitalstocks | 0 comments | Continued(AMGN) Mixed Ruling for Amgen’s Drug
Yesterday, the U.S. Food and Drug Administration’s (FDA) advisory panel ruled in favor of Amgen’s (AMGN) osteoporosis drug denosumab (proposed trade name: Prolia), but with certain exceptions. While the advisory panel unanimously gave its stamp of approval to the injectable...
14Aug2009 | vitalstocks | 0 comments | Continued(C) Citigroup Sells Bonds in Australia
The Australian arm of Citigroup (C) recently priced a new 3-year bond issue at AUD 1.25 billion ($1 billion) guaranteed by the Australian Government. The bonds are priced at 43 basis points over swap and Bank Bill Swap (BBSW) reference rate. The issue comprises fixed-rate notes...
14Aug2009 | vitalstocks | 0 comments | Continued(DD) DuPont Reorganizes 23 businesses into 14 to streamline operations
DuPont (DD) consolidated its 23 businesses into 14 in an effort to streamline its operations. The 14 businesses are Pioneer Hi-Bred, Crop Protection, Nutrition & Health, Electronics & Communications, Performance Coatings, Performance Polymers, Packaging & Industrial...
14Aug2009 | vitalstocks | 0 comments | Continued(CVX) Upbeat on Chevron – oil and gas development project pipeline is among the best in the industry
Chevron Corp. (CVX) inked a five-year contract with Transocean Ltd. (RIG) for the use of a newly built ultra-deepwater drillship, Discoverer Clear Leader, in the Gulf of Mexico. The state-of-the-art vessel is the first of two new drillships to be commissioned for Chevron. The...
14Aug2009 | vitalstocks | 0 comments | Continued(AYE) Allegheny Seeks Higher Base Rate
Allegheny Energy (AYE) recently appealed to the Public Service Commission of West Virginia for a base rate (covers non-fuel costs of the utility) increase of $122 million. The proposed increase, if approved, will generate a return on equity (ROE) of 12.25% for the company. This...
14Aug2009 | vitalstocks | 0 comments | Continued(DELL) Dell in Troubled Waters – Rivals have also started pricing models at competitive prices
Hard times seem far from over for Dell (DELL). The company’s Chairman Michael Dell and Chief Executive Officer Kevin Rollins are encountering problems on all fronts. Trouble started with the Sony (SNE) laptop battery fiasco back in 2006, which prompted the company to recall...
14Aug2009 | vitalstocks | 0 comments | Continued(TSO) Tesoro Outlook Bearish – second-quarter loss of 33 cents per share
Our Underperform recommendation on Tesoro (TSO) shares takes into account the bearish refining margin outlook. A growing supply overhang in the face of a recession-induced fall in global oil product demand has led to a squeeze in refiners’ profits. Tesoro’s lack of geographic...
14Aug2009 | vitalstocks | 0 comments | Continued(USL) Profiting From Oil – Peak or Not
Tony Daltorio, The Investment U Research Team It seems like the only times that the financial media talks about oil is when they mention either demand destruction in the United States or an inventory buildup of fuel, etc. in the United States. The financial media is doing...
14Aug2009 | InvestmentU | 0 comments | Continued(TESS) TESSCO Technologies Inc. – ROE of 10% tops the industry average of 4%
TESSCO Technologies Inc. (TESS) recently declared its first-ever quarterly dividend of 10 cents per share. The new dividend translates into an industry-leading yield of 3%. The company delivered first-quarter earnings of 38 cents per share, surpassing the Zacks Consensus Estimate...
13Aug2009 | vitalstocks | 0 comments | Continued(MFLX) Multi-Fineline Electronix Inc. – Estimate rose 7 cents to 44 cents in the last week with 3 out of 4 analysts raising
Multi-Fineline Electronix, Inc. (MFLX) is riding the smartphone wave as sales rose 4.1% in the third quarter. The company has surprised on estimates 3 out of the last 4 quarters by an average of 26.33%. MFLEX has a price-to-book ratio of 1.87. Company Description Multi-Fineline...
13Aug2009 | vitalstocks | 0 comments | Continued