Daily Archives: May 18, 2008

Microsoft (MSFT) Renews Talks With Yahoo! (YHOO)

It look like Carl Icahn and his friends and fellow institutions may be about to make some real money on Yahoo! (YHOO) stock. They probably bought in at $25. They may get $31 to $33 a ahare and soon.

Microsoft (MSFT) is in talks with Yahoo! again. According to the AP "Microsoft Corp. says it is talking to Yahoo Inc. about a transaction that won’t involve a full buyout." Whatever that deal is, there a a real chance that it will involve Redmond either putting money into the portal company or taking on its search function which would allow Yahoo! to save several hundred billions a year.

Microsoft could also use Yahoo!’s search product with an option to buy the entire company at some point in the future.

Douglas A. McIntyre

Posted on: May 18, 2008 – 3:39 pm in Internet, ,

Earnings Duel: Lowe’s Vs. Home Depot (LOW, HD)

This week we’ll get to see earnings out of home improvement giants Lowe’s Companies Inc. (NYSE: LOW) and Home Depot Inc. (NYSE: HD).

Lowe’s Companies Inc. (NYSE: LOW) reports earnings on Monday.  First Call has estimates pegged at $0.40 EPS on $12.36 Billion in revenues.  Estimates for next quarter are $0.56 EPS on $14.37 Billion in revenues, and fiscal Jan-2009 estimates are $1.54 EPS on $49.35 Billion in revenues.  Analysts have an average price target of just over $28.20 and shares closed at $24.89 Friday.  Its 52-week range is $19.94 to $33.19 and its market cap is roughly $36.4 Billion.

Home Depot Inc. (NYSE: HD) reports its earnings Tuesday.  First Call has estimates pegged at $0.37 EPS on $17.6 Billion in revenues.  Estimates for next quarter are $0.66 EPS on $20.88 Billion in revenues, and fiscal Jan-2009 estimates are $1.76 EPS on $72.68 Billion in revenues.  Analysts have an average price target of just over $31.50 and shares closed at $29.10 Friday.  Its 52-week range is 23.77 to $41.19 and its market cap is roughly $49.2 Billion.

While both companies may give guidance for the coming quarter, there is one thing that might be a total wild card beyond the following quarter: hurricane season.

Jon C. Ogg
May 18, 2008

Posted on: May 18, 2008 – 9:22 am in Earnings, Housing, Retail, ,

BA To Gound Jets To Save Fuel (NWA)(DAL)(AMR)

In a move that should be imitated by large US carriers like AMR (AMR), Delta (DAL), and Northwest (NWA), British Airways will ground part of its fleet to save money  because of the rising cost of fuel.

According to The Times. "The airline would park its oldest, least fuel-efficient aircraft."

Analysts are concerned that BA may loss money for the next two years. By taking some aircraft out of service the carrier could ameliorate some of that.

Wall St. may watch to see if big American companies have the sense to do the same thing. Most have debt loads large enough to move them toward Chapter 11, if fuel costs stay high and a rough economy hurts passenger traffic.

Douglas A. McIntyre

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Posted on: May 18, 2008 – 6:43 am in Airlines, , ,

More Craziness At Dell (DELL)

Late word is that Dell (DELL) may team up with interests in the Middle East to buy several companies in the region including a mobile phone company.

According to Reuters Tecom in Dubai "said it expects to make up to three acquisitions in the Middle East and Africa this year, including in a mobile phone firm."

Why Dell would want to be involved when it is still having trouble with its core PC business is anyone’s guess.

Douglas A. McIntyre

Posted on: May 18, 2008 – 6:33 am in Uncategorized,