Daily Archives: November 13, 2009

Paulson Takes Huge Stake In Citigoup, Dumps Goldman

Money ImageJohn Paulson is rather notorious, and wealthy, for how much he picked up by shorting financial stocks on the way down.  But the financial world found out in August that Paulson & Co. had bought up many key financial and banking stocks.  Paulson & Co. Inc. is out with a 13-F filing after the close showing he is still in many key financial stocks.

The famed hedge fund manager took a massive stake in Citigroup and sold his entire interest in Goldman Sachs

  • Bank of America (NYSE: BAC) was listed as 159,794,229 shares, down from 167,990,464 shares.
  • Capital One Financial Corp. (NYSE: COF) was static as a stake of 17,000,000 shares of common stock.
  • Citigroup Inc. (NYSE: C) is listed as 300,000,000 (three-hundred million) of common stock.
  • Fifth Third Bancorp (NASDAQ: FITB) was static as a 5,000,000 share stake.
  • First Horizon National Corp. (NYSE: FHN) was 7.11 million, up from a stake of 3,000,000 shares in August.
  • JPMorgan Chase & Co. (NYSE: JPM) was down to 2,000,000 shares, down from an August stake of 7,000,000 shares of common stock.
  • Marshall & Ilsley Corp. (NYSE: MI) was static at 12,000,000 shares of common stock.
  • People’s United Financial Inc. (NASDAQ: PBCT) was static at 2,750,000 shares of common stock.
  • Regions Financial Corp. (NYSE: RF) was static at 35,000,000 shares of common stock.
  • SunTrust Bank Inc. (NYSE: STI) was static at 1,500,000 shares of common stock.

We had also noted back in October how Conseco, Inc. (NYSE: CNO) had scored a Paulson investment.

Goldman Sachs Group Inc. (NYSE: GS) was NOT in the new filing compared to the August filing where he listed 2,000,000 shares of common stock in the August filing.  State Street Corp. (NYSE: STT) was NOT in the filing versus a stake of 700,000 shares of common stock in August.

JON C. OGG

Posted on: November 13, 2009 – 5:50 pm in Activist Investor, Banking, Financial Stocks, , , , , , , , , , , ,

Beazer Files to Raise $750 Million (BZH)

Money Stack ImageBeazer Homes USA, Inc. (NYSE: BZH) has just filed a mixed securities shelf registration that will allow it to sell securities in the amount of up to $750 million.  This will allow Beazer and its subsidiaries to sell any combination of Senior Debt Securities, Subordinated Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Rights Stock Purchase Contracts, Stock Purchase Units, and Guarantees of Debt Securities.
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Posted on: November 13, 2009 – 5:03 pm in Housing, Secondary Offering,

Are Silicon Storage Holders Getting Enough? (SSTI)

Money ImageSilicon Storage Technology, Inc. (NASDAQ: SSTI) is trading up on a private equity and management-led buyout.  SST is flash memory maker based in Sunnyvale, California.  While the company has entered into a definitive merger agreement to be acquired for $2.10 per share, it is almost impossible not to wonder (at best) if this price is a fair value to the Silicon Storage shareholders who would be getting cashed out if a majority approves the deal.

First off, the company is being acquired by Prophet Equity LP’s Technology Resource Holdings, Inc. as well as by members of Silicon Storage’s management team.  The $2.10 price is also only a 13% premium to yesterday’s close.  It seems some believe that the private equity and management-led buyout will have to pony up more.  Shares are above the buyout price.
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Posted on: November 13, 2009 – 3:00 pm in Corporate Governance, Management Change, Mergers and Buy Outs, Private Equity, Semiconductor, Shareholder Issues, Technology Companies,

Retail & Apparel Earnings Dominate Next Week (SKS, BJ, GYMB, ANN, DKS, FL, GPS, SHLD, PLCE, WTSLA, ZUMZ)

Bull and Bear ImageIt seems that earnings season is winding down, but next week we have many of the key retail and apparel players reporting earnings.  Saks Incorporated (NASDAQ: SKS), BJ’s Wholesale Club Inc. (NYSE: BJ), Gymboree Corp. (NASDAQ: GYMB), and Ann Taylor Stores Corp. (NYSE: ANN) are all reporting next week.  Next Thursday may feel like a retail and apparel earnings bonanza as we have Dick’s Sporting Goods Inc. (NYSE: DKS), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Sears Holdings Corporation (NASDAQ: SHLD), The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE), Wet Seal Inc. (NASDAQ: WTSLA), and Zumiez, Inc. (NASDAQ: ZUMZ) all reporting earnings in one day.

We have provided estimates from Thomson Reuters, recent sale store sales data, share performance, and added color on what else to consider where applicable.
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Posted on: November 13, 2009 – 11:36 am in Apparel, Calendar, Earnings, Retail, , , , , , , , , , ,

Another Sign That China Rules The World: Mercedes Sales

carAs another sign of the truth that most of the world’s rich people have moved to China or were born there, sales of the $150,000 Mercedes S class are now higher in the People’s Republic than in the US or Germany.

According to USA Today, Mercedes CEO Dieter Zetsche says that China is its No.3 market  just behind the US and Germany for total sales of all the company’s car and light truck brands regardless of size or cost.

Douglas A. McIntyre

 

Posted on: November 13, 2009 – 10:23 am in Autos, China

Many Key SPACs on Deck (PAX, TOH, EST, TCW, CFQCF, GQN, NSAQ, CIO)

We have been given some exclusive data from SPACupdate.com on the progress of many blank check and special purpose acquisition companies which their targets and relevant trading data. Prospect Acquisition Co. (AMEX: PAX), Hicks Acquisition Co. (AMEX: TOH), Enterprise Acquisition Co. (AMEX: EST), Triplecrown Acquisition Co. (AMEX: TCW), China Fundamental Acquisition Co. (OTC: CFQCF), Global Brands Acquisition Co. (AMEX: GQN), North Shore Acquisition Co. (OTC: NSAQ), and Asia Special Situation Acquisition Co. (AMEX: CIO) all have very recent or pending data important for SPAC and special situations investing.
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Posted on: November 13, 2009 – 9:23 am in Mergers and Buy Outs, Private Equity, , , , , , , ,

Today’s Best Market Rumors (11/13/2009) (PALM)(INTC)(AMD)

magazinUpdated throughout the day.

Updated 10.30 AM EST: PALM (NASDAQ:PALM) shares are up on speculation that Dell (NASDAQ:DELL) or Nokia (NYSE:NOK) will buy the faltering handset firm (VSInvestor)

Former Goldman Sachs (NYSE:GS) CEO and New Jersey governor Jon Corzine said he has not talked to Bank of America (NYSE:BAC) about running the firm. (The Deal)

Some former bank CEOs are considering bidding for failed banks at FDIC auctions.  (WSJ)

Now that it has settled a legal dispute against AMD (NYSE:AMD), Intel’s (NASDAQ:INTC) biggest challenge is competition from ARM Holdings  (BusinessWeek)

Douglas A. McIntyre

Posted on: November 13, 2009 – 9:00 am in Rumors, , , , , , ,

Top Day Trader Alerts (ANF, RINO, CADX, TSTC, PLA, JWN)

These are this morning’s top day trader and active trader alert stocks.  More detailed analysis and data has been offered via a link to each story at VSInvestor.com:

Abercrombie & Fitch Co. (NYSE: ANF) is trading higher by 6% despite poor sales.

RINO International Corp. (NASDAQ: RINO) is hitting new 52-week highs after strong earnings.

Cadence Pharmaceuticals Inc. (NASDAQ: CADX) is down 6% after the FDA extended the review for its painkiller Acetavance.

Telestone Technologies Corp. (NASDAQ: TSTC) is the top percentage gainer.

Playboy Enterprises Inc. (NYSE: PLA) is up again 8% after yesterday’s takeover chatter.

Nordstrom Inc. (NYSE: JWN) is down about 5% on soft earnings despite raised guidance.

You can join our open email distribution list which goes out several times per week to be notified of key merger news, key analyst calls, top early morning day trader alerts, along with news of IPO’s, key offerings, guru investor data on Buffett and others, mergers, and more.

JON OGG

Posted on: November 13, 2009 – 8:53 am in Pre-Market Activity, Trading Alert, , , , , ,

Top 10 Analyst Upgrades, Downgrades, Initiations (ADBE, FDX, JNPR, LVS, MSFT, ORCL, QCOM, CRM, NCTY, WYNN)

These are this Friday’s top early analyst upgrades, downgrades, and initiations from Wall Street research calls which may be moving shares of the underlying stocks:

Adobe Systems (NASDAQ: ADBE) Started as Buy at UBS.
FedEx (NYSE: FDX) Started as Overweight at Piper Jaffray.
Juniper Networks (NASDAQ: JNPR) Raised to Outperform at Oppenheimer.
Las Vegas Sands (NYSE: LVS) Started as Buy at Deutsche Bank.
Microsoft Corporation (NASDAQ: MSFT) Started as Buy at UBS.
Oracle Corp. (NASDAQ: ORCL) Started as Buy at UBS.
QUALCOMM Inc. (NASDAQ: QCOM) Raised to Outperform at Wells Fargo.
Salesforce.com (NYSE: CRM) Started as Neutral at UBS.
The9 Ltd (NASDAQ: NCTY) Cut to Neutral at JPMorgan.
Wynn Resorts Ltd. (NASDAQ: WYNN) Started as Buy at Deutsche Bank.

You can join our open email distribution list which goes out several times per week to be notified of key merger news, key analyst calls, top early morning day trader alerts, along with news of IPO’s, key offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG

Posted on: November 13, 2009 – 7:59 am in Analyst Calls, Technology Companies, , , , , , , , , ,

Exxon: Weak Dollar Adding $20 to Oil Prices (XOM, USO)

Money ImageThe weak dollar has definitely been a contributor to the rise in the price of gold.  And it is also partly responsible for some of the oil gains that took prices back over $80 per barrel before the recent pullback.  But Rex Tillerson, the CEO of Exxon Mobil Corp. (NYSE: XOM), has actually quantified this with an assigned dollar value to CNBC.  His take is that as much as $20.00 per barrel is tied to the weakness of the US Dollar.
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Posted on: November 13, 2009 – 7:53 am in Commodities, Oil & Gas, ,

Global Recovery Grows As France And Germany Rebound

uncle samGermany and France, the two largest economies in Europe posted modest third quarter GDP growth. Germany’s economy grew 0.7% in the period that ended September 30 and France announced a 0.3% improvement. In the second quarter, both countries had also reported a tiny up-tick in GDP.

Read more….

Posted on: November 13, 2009 – 7:30 am in Uncategorized

Video Game Sales Fall Back In October

wiiSeptember sales for video game consoles were relatively good given the economy. Price cuts on the Nintendo Wii, Sony (NYSE:SNE) PS3, and Microsoft (NASDAQ:MSFT) Xbox stimulated activity. It appears that the initial surge in sales that those discounts caused is already over.

Video game sales, including consoles and games, fell 18% in October. Read More »

Posted on: November 13, 2009 – 6:30 am in Video Games, ,

Target (TGT) Promotes $3 Appliances

hersheyDVDs and e-books that sell for under $10 is one thing. Appliances that sell for $3 is another. Target (NYSE:TGT) is offering toasters, coffee makers, and slow roasters at $3 each, according to data from GotADeal.com.  It is a sign that discounting to pull in retail customers is getting out of hand.

A number of retail industry analysts have questioned whether Wal-Mart (NYSE:WMT), Amazon (NASDAQ:AMZN), and Target (NYSE:TGT) can make money on their DVD promotions. It is just as likely that they choose to lose money on these items to draw people into stores or to their online sites.. They hope that those customers will buy more expensive products that have reasonable profit margins. It is a risk, but given the revenues of the three companies, not a big one. Read More »

Posted on: November 13, 2009 – 6:11 am in Retail, , ,

Too Many Apple (AAPL) Stores

appleApple (NASDAQ:AAPL) will have too many retail stores at some point. It will face the “Starbucks problem” of over-building. Starbucks once boasted that it would eventually have 40,000 coffee shops worldwide. It will be lucky to end up with 20,000.

A $3 cup of coffee is not a $1,500 Mac. Apple will reach a ceiling of profitable retail stores at a count much lower than Starbucks.

Apple has 279 stores and is adding to that total at the rate of about 50 per year and that pace is likely to increase. According to CNET, 170 million people visited Apple outlets in the company’s 2009 fiscal year and during that period the company brought in $6.6  billion of its $29.9 billion in revenue through sales at retail. Read More »

Posted on: November 13, 2009 – 5:53 am in PC Companies, Retail, , ,

The Swine Flu Epidemic Fails To Do Economic Damage

bearSwine flu vaccinations have been slow to get to those who want to be treated. The Centers for Disease Control and Prevention says that about 22 million American have contracted the disease and of those almost 4,000 have died.  The number of people who have had to go to hospitals because if the illness is less than 100,000.

It is remarkable that more thsn  7% of Americans have the flu or have had it, and the effects on the medical system and economy have been nonexistent. The death rate from the disease appears to be lower than the seasonal flu. There have been very few reports that companies have had to close large facilities or that earnings may be undermined by the spread of the H1N1 virus. Read More »

Posted on: November 13, 2009 – 5:12 am in Economy, Editor's Picks

Boeing (BA) Dreamliner Still Broken Along With Firm’s Management

airplaneBoeing (NYSE:BA) said it had encountered another problem with the final assembly of its Dreamliner in a cryptic press release from the company. The issue was discovered in the area where the plane’s wing meets its body. The discovery may only push back the time table for flight testing of the 787 for a brief time, but it is still an example of the poor engineering oversight that Boeing has exercised in the design and manufacturing of the plane. Read More »

Posted on: November 13, 2009 – 4:51 am in Aerospace, Airlines,

Media Digest 11/13/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   China’s economy may be hurt as its stimulus ends.

Reuters:   Warren Buffett says the financial panic is over.

Reuters:   Former bankers are considering buying failed banks.

Reuters:   The SEC is expected to go ahead with the Bear Stearns case. Read More »

Posted on: November 13, 2009 – 4:03 am in Press Digest, , , , , , , , , ,

Asia Markets And Europe Open (11/13/2009)

chinaMarkets in Asia were mixed.

The Nikkei fell .4% to  9,770. Mitsubitchi UFJ (MYSE:MTU) fell.

The Hang Seng was up .7% to 22,554.

The Shanghai Composite rose .5% to 3,188.

At the open in Europe, the FTSE was down .3% to 5,267. Rio Tinto (NYSE:RTP) fell. The Dax moved down .1% to 5,660. The CAC 40 fell .6% to 3,787.

Data from Reuters and MarketWatch

Douglas A. McIntyre

Posted on: November 13, 2009 – 3:26 am in International Markets, ,