04 – July – 2007 – 24/7 Wall St.

Daily Archives: July 4, 2007

Research In Motion (RIMM) Goes To China

After eigh years of effort Research In Motion (RIMM) has permission to sell its Blackberry in China. It could add fuel to an already fast-growing company.

RIMM shares are up 3.2x over the last year to $210.

Although the Blackberry does not compete with the Apple (AAPL) iPhone and most other handsets because it is primarily an e-mail tool, being in China before the iPhone could give it an early market foundation that would be valuable as new wireless products come to the world’s most populated country.

RIMM needs something to show the market that it can keep up its rapid growth. Moving into China helps.

Douglas A. McIntyre

Posted on: July 4, 2007 – 11:45 am in Uncategorized, AAPL, RIMM

Coca-Cola’s (KO) Tea Party

Coca-Cola (KO) might like to own tea company Snapple. So says Coke’s CEO.

Reuters writes: "Snapple, which sells flavored teas, lemonades and juice drinks, is one of the world’s largest bottled tea brands, ahead of Coke’s entire tea portfolio which includes Nestea, Gold Peak and recently acquired Fuze, according to recent Beverage Digest data."

Coke could use a lift. Over the last two years, its shares have underperformed the broader market, and are up about 25%. Shares in Cadbury Schweppes, which owns Snapple now, are up about 40%.

Maybe Snapple brings good luck to its owner.

Douglas A. McIntyre

Posted on: July 4, 2007 – 11:36 am in Uncategorized, KO

Media Digest 7/4/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Blackstone (BX) bought Hilton Hotels (HLT) for $20 billion plus debt.

Reuters writes that private equity firm Apollo offered $6 billion for Huntsman.

Reuters reports that car sales in June were poor for US manufacturers with GM (GM) sales falling 21%.

The Wall Street Journal writes the KKR filed for an IPO to raise $1.25 billion.

The Wall Street Journal writes that eBay (EBAY) opened a free classified site that will compete with Craigslist.

The Wall Street Journal writes that Alcoa (AA) hinted that it would make a higher offer for Alcan (AL).

The New York Times writes that Horizon ABS Fund, a mortage securities hedge fund, blocked withdrawals as investors attempted to take their money out.

The FT writes that Kraft (KFT) bought Danone’s (DA) biscuit business for $7.2 billion.

The FT that Ford’s (F) crossover sales were 83 per cent higher last month than a year earlier.

Barron’s writes at RBC Capital cut is estimates for Motorola’s (MOT) sales.

Douglas A. McIntyre

Posted on: July 4, 2007 – 6:22 am in Uncategorized, AA, AL, BX, DA, EBAY, F, GM, HLT, KFT, MOT