Posts related to ‘Shareholder Issues’

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.
Read More »

Posted on: November 13, 2009 – 3:00 pm in Corporate Governance, Management Change, Mergers and Buy Outs, Private Equity, Semiconductor, Shareholder Issues, Technology Companies,

How Much is Benmosche Really Worth to AIG? (AIG, MET)

AIG LogoAmerican International Group, Inc. (NYSE: AIG) is under pressure today after its new CEO Robert Benmosche, who has not even had a full three months yet on the job, has effectively threatened to walk out as CEO of AIG. The reasoning is over the intense restrictions of being under the government, particularly as it pertains to compensation limits.  What is interesting is that this may be a strong CEO throwing the gauntlet at the government.  But we also want to explore what Benmosche is actually worth in real dollar terms to AIG today.  Chances are it is far more than just this 4% we have seen the stock drop today.
Read More »

Posted on: November 11, 2009 – 1:00 pm in Compensation, Editor's Picks, Financial Stocks, Insider Activity, Management Change, Regulation, Rumors, Shareholder Issues, Turnarounds, ,

ConocoPhillips Gets More Shareholder-Friendly (COP, XOM, CVX)

Conoco LogoConocoPhillips (NYSE: COP) is trying to further adopt shareholder-friendly strategies with a higher payout and lower expenses.  With as much as this stock has lagged some peers until recently, that should be of little surprise.  It was back in early March when we listed ConocoPhillips as one our picks in the energy sector which might double from their lows.  Shares were around $37 at the time and we noted that they would have to hit $68 for that double to hold true.  And now shares are up close to $49 and look as though that they want to challenge the $50 mark.

In order to generate more cash, the company cut its cap-ex budget for next year to about $11 billion for exploration and production and to replace reserves.  It will also sell what is said to be about $10 billion in assets.  To entice shareholders, it also lifted its quarterly dividend 6.4% to $0.50. This puts it above a 4% yield, which looks on the surface to be the highest of the major US-based integrated oil players such as Chevron Corp. (NYSE: CVX) and Exxon Mobil Corp. (NYSE: XOM).  It also marks what appears to be the 7th year in a row to boost its dividend.

Read More »

Posted on: October 7, 2009 – 12:36 pm in Commodities, Dividend, Oil & Gas, Shareholder Issues, , ,

The Lame Blame on Short-Termism

Bull and Bear ImageThere is a very silly notion being brought to you by the Aspen Institute Business & Society Program’s Corporate Values Strategy Group and what is admittedly a rather impressive list of names joining it. It is a call to end “Short-Termism” in the financial markets.  Imagine a long-term financial utopia where investors did not have to trouble themselves with the day in and day out wranglings of the stock market or the economy.

Imagine if quarterly earnings, monthly same-store-sales, quarterly or annual guidance, key turns in the demand cycle, interruptions or obsolescence of a business model and other issues were just able to be smoothed over.  Now imagine investing in this sort of a climate.  This idea sounds great on paper and probably looks great on economic models and charts that are the basis for the notion because it goes along with the current theme of thinking for the long-haul and doing what is best for everyone else.  The problem is that this is the most silly and perhaps dangerous notion for the public to embrace.  This is a path for investors large and small to get drummed, slapped, duped, discouraged and a few other things we decided not to print.
Read More »

Posted on: September 9, 2009 – 12:10 pm in Accounting, Activist Investor, Brokerage Firms, Buffett, Economy, Editor's Picks, Exchange News, Labor & Unions, Regulation, Research, Shareholder Issues, Utilities, Value Investing, , , , , , ,

Barrick Raising & Spending Billions To Drop Hedging (ABX)

Gold ImageBarrick Gold Corporation (NYSE: ABX) is going to be taking an action which has mixed implications for shares of Barrick versus the overall gold play now that the shiny yellow metal is hitting $1,000.00 an ounce.  The company has engaged a large syndicate of underwriters to raise billions in cash.  This is not to make an acquisition, but rather to remove gold hedging contracts.  With gold hitting $1,000.00 today, it seems that management does not want to leave major upside here in case the gold run-up is just starting.
Read More »

Posted on: September 8, 2009 – 5:29 pm in Accounting, Commodities, Metals, Secondary Offering, Shareholder Issues,

Citi Now 33.6% Gov’t Owned… Reverse Split Seems Imminent (C)

Broken Money Merger ImageCitigroup, Inc. (NYSE: C) is going to have a very active day ahead of it.  The troubled banking giant has just announced that its common stockholders approved the three resolutions submitted in its Common Proxy Statement dated June 18, 2009.  If Citi does not need a reverse split just to chop down the number of shares, then no company ever did.  The company has been authorized to effect a reverse split, although it is not required to, in the new situation.  And Uncle Sam now owns 33.6% of the company.
Read More »

Posted on: September 3, 2009 – 9:46 am in Banking, Financial Stocks, Shareholder Issues, Stock Splits, Turnarounds,

Huron… When The Consultants Need Consultants (HURN)

burning-money-picHuron Consulting Group Inc. (NASDAQ: HURN) was a stock we screened early this morning in pre-market hours for its active trading at VSInvestor.com.  We noted that this one was getting destroyed, but the company may have just become one of the worst stocks on NASDAQ.

Huron disclosed that it is restating financial statements for the fiscal years 2006, 2007 and 2008 and Q1 2009.  The restatements pertain to non-cash charges relating to how payments received by the sellers of certain acquired businesses were subsequently redistributed among themselves and to other select Huron employees.  The total estimated impact on net income and EBITDA might not sound that bad on the surface for all restated periods at $57 million, particularly when there is said to be no impact on cash, cash flows from operations or adjusted EBITDA.   Things go from bad to worse after that.
Read More »

Posted on: August 3, 2009 – 11:04 am in Business Services, Earnings Warning, SEC, Shareholder Issues,

Karmazin Contract Extended, With Raise and Massive Options (SIRI)

SIRIUS LOGOSIRIUS XM Radio Inc. (NASDAQ: SIRI) has extended its contract with CEO Mel Karmazin.  Today, June 30, 2009, the company entered into an amendment to the amended employment agreement, dated November 18, 2004, with Karmazin.
Read More »

Posted on: July 1, 2009 – 12:29 pm in Compensation, Management Change, Media, Options, Satellite, Shareholder Issues,

Emulex Still May Refuse Higher Offer (ELX, BRCM)

Money Stack ImageEmulex Corporation (NYSE: ELX) has already given an initial response to the higher $11.00 offer from Broadcom Corporation (NASDAQ: BRCM).  This is not an outright rebuff, but Emulex said that its board of directors is following fiduciary duties with the assistance of its financial and legal advisors.  So far it has merely said that it will review the terms of the revised tender offer.
Read More »

Posted on: June 30, 2009 – 8:32 am in Mergers and Buy Outs, Shareholder Issues, Technology Companies, ,

Buffett Opines on Green Shoots, Inflation, Apple Disclosure, and Bernanke (BRK.A, BRK.B, WFC, AAPL)

Buffett ImageWarren Buffett of Berkshire Hathaway, Inc. (NYSE: BRK.A) (NYSE: BRK.B) just gave an interview to CNBC’s Becky Quick ahead of the “Power Lunch” segment.  As far as green shoots in the economy, Buffett said he is just not seeing any.  He even joked about having cataract surgery being a month ago and he still can’t see green shoots.  He noted the weakness in retail and manufacturing, and said demand is “down like we’ve never seen it.”

Buffett also keyed on some issues around Wells Fargo & Co. (NYSE: WFC) and even on the Apple Inc. (NASDAQ: AAPL) disclosure.
Read More »

Posted on: June 24, 2009 – 11:05 am in Banking, Buffett, Economy, Interview, Shareholder Issues, , , ,

Will Monsanto Ultimately Jettison Roundup and Herbicides Operations? (MON)

Money Stack ImageMonsanto Co. (NYSE: MON) posted a drop in third-quarter earnings to $694 million, or $1.25 EPS.  That compares to $811 million, or $1.45 EPS, a year ago.  Revenue fell to $3.16 billion from $3.54 billion a year ago.  Consensus estimates from Thomson Reuters were for $1.17 EPS and $3.45 billion in revenues.  Monsanto also put its annual earnings at the low end of its $4.40 to $4.50 range.  Estimates are for $4.40 EPS.  While this is decent on the earnings front, the reorganization of the Roundup and herbicides operations is the real story here.  That unit contributed the most to the revenue decline. It is hard to not wonder if this means a spin-off or sale of the unit is possible.
Read More »

Posted on: June 24, 2009 – 8:12 am in Earnings, Shareholder Issues,

If Apple’s Disclosure Practice Becomes Corporate America’s Norm… (AAPL)

Burning Money PicApple Inc. (NASDAQ: AAPL) is holding up rather well when you consider the weekend news that Steve Jobs had a liver transplant.  Unless you are Steve Jobs himself, the bad news isn’t that Jobs had a liver transplant.  It is that the transplant was about two months ago.  Whether or not the company MUST disclose that on a more timely basis is a topic for much debate.  But what should not be an issue is the performance of the stock during the time that Jobs has been out of the day-to-day operations at Apple.  If this becomes an acceptable benchmark, then the real risk here is that this practice of not disclosing information could spread.
Read More »

Posted on: June 22, 2009 – 8:28 am in Management Change, Rumors, Shareholder Issues, Technology Companies,

Unusual Dividend Tracking (CAT, CLX, MSFT, TGT, TSCM, VMC, ACAS, IAF)

Money Stack ImageDividends in general are used as the historic underlying measurement of companies and their abilities to stay profitable at current levels.  Today and last night we have seen some rather unusual dividend news or “in addition to the dividend news” from the likes of Caterpillar Inc. (NYSE: CAT), Clorox Co. (NYSE: CLX), Microsoft Corp. (NASDAQ: MSFT), Target Corp. (NYSE: TGT), TheStreet.com, Inc. (NASDAQ: TSCM), and Vulcan Materials Co. (NYSE: VMC).  American Capital Ltd. (NASDAQ: ACAS) takes the cake for unusual dividends, and the payout at the Australia Equity Fund Inc. (AMEX: IAF) closed-end fund also borders one the unusual.

Read More »

Posted on: June 11, 2009 – 11:08 am in Dividend, Shareholder Issues, Value Investing, , , , , , , ,

GM Not Government Motors, Goner Motors (GM)

Burning Money PicGeneral Motors Corporation (NYSE: GM) is getting closer and closer to what is an obvious bankruptcy with the June 1 deadline looming.  This morning came the news that GM’s bondholders were now accepting a new better deal than what had been recently rejected.  This had shares trading higher, but the new notion out of the administration is that the common shareholders are likely to have little to no residual value remaining in the New Co.
Read More »

Posted on: May 28, 2009 – 12:27 pm in Autos, Index, Law, Politics, Shareholder Issues, Trading Alert,

SIRIUS XM Gets Closer To Reverse Stock Split (SIRI)

SIRIUS LOGOIn most years, shareholder meetings are not full of much change.  This year has been very different in that manner, and SIRIUS XM Radio Inc. (NASDAQ: SIRI) just sealed its share fate on the share count and on a split as it voted to increase the authorized share count and then making an adjustment that would allow for a  pending reverse stock split.
Read More »

Posted on: May 27, 2009 – 3:29 pm in Editor's Picks, Media, Satellite, Shareholder Issues, Stock Splits,

Media Digest 4/30/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper29According to Reuters, Bank of America (BAC) shareholders voted to separate the chairman and CEO roles and Ken Lewis was replaced as chairman.

Reuters reports that talks to keep Chrysler out of Chapter 11 are on the rocks.

Reuters reports that the Fed sees the economic downturn easing. Read More »

Posted on: April 30, 2009 – 2:51 am in Autos, Banking, Consumer Electronics, Corporate Governance, Earnings, Earnings Warning, Economy, Labor & Unions, Management Change, Oil & Gas, Press Digest, Shareholder Issues, Technology, Telecom, , , , , , , , , , , , , ,

Confusing Buffett & Berkshire Hathaway’s 2009 Annual Meeting & Earnings Dates (BRK-A)

buffett-image2There appears to be some over-reporting around the upcoming earnings date of Berkshire Hathaway, Inc. (NYSE: BRK-A) ahead of this weekend’s highly anticipated annual shareholder meeting.  The media is reporting that there is not going to be an earnings release Friday from the company on its first quarter of 2009 ahead of this weekend’s annual shareholder meeting.  There is just one problem.  Berkshire Hathaway never set a pre-meeting date for the earnings report.
Read More »

Posted on: April 29, 2009 – 2:14 pm in Annual Report, Buffett, Earnings, Shareholder Issues, ,

BofA Needs More Time To Tally Votes on Lewis & Other Issues (BAC)

b-of-a-logo3Bank of America Corporation (NYSE: BAC) has already had all of its votes turned in on the shareholder issues up for a vote.  We have been (painfully) listening to the live webcast of this shareholder meeting since 10:00 AM EST.  The company has given its confidence and its opinion in defense of the Countrywide and Merrill Lynch acquisitions, but the total votes to be tallied are still being counted. The woman who was set to announce the results of the vote has said that more time is required to count and tally up the votes.  The results of the vote for or against Ken Lewis and the other shareholder issues will now be issued in the form of a press release.

JON C. OGG

Posted on: April 29, 2009 – 12:13 pm in Banking, Management Change, Shareholder Issues,

Does Ken Lewis Survive At B of A Past Wednesday? (BAC, C)

b-of-a-logo1Wednesday will potentially mark the apex for the scandals and controversy surrounding Bank of America Corporation (NYSE: BAC) as far as its role in Merrill Lynch bonuses, whether Ken Lewis (and/or other managers) get to stay on, whether mergers were forced, TARP acceptance, strange acquisitions, and other controversies regarding B of A.  The company’s Annual Shareholder Meeting where investors have their one day of the year where they have a say for what goes on inside the company.  This will take place at 10:00 AM EST and the webcast landing page notes that it should last approximately two hours.  Potentially the largest question at stake is around the future of Chairman & CEO Ken Lewis.
Read More »

Posted on: April 28, 2009 – 12:16 pm in Banking, Financial Stocks, Insider Activity, Management Change, Shareholder Issues, ,

Northern Trust Raising Cash To Pay Off TARP (NTRS)

money-stack-image48Northern Trust Corporation (NASDAQ: NTRS) is selling some $750 million worth of common stock in a public secondary offering.  Simultaneously, the bank intends to offer some $500 million in principal amount of senior notes.  Neither offering is contingent upon the other.
Read More »

Posted on: April 27, 2009 – 3:38 pm in Banking, Financial Stocks, Regulation, Shareholder Issues,