Posts related to ‘Turnarounds’

Corzine as Bank of America CEO? (GS, BAC)

B of A LogoJon Corzine recently lost the gubernatorial race in New Jersey.  He is also a very wealthy Wall Streeter that is a former disciple of Goldman Sachs Group Inc. (NYSE: GS).  He is also a democrat that is very friendly with the Obama administration.   And now the strange rumor mill is getting stranger….

Charlie Gasparino on CNBC just threw out the idea that Corzine could potentially be in the running for the CEO role at Bank of America Corp. (NYSE: BAC) as the replacement for Ken Lewis….. after he touted his book again.  Gasparino noted that he asked Bank of America about this and the ‘rumor’ was not denied but was given a ‘no comment’ answer which Gasparino expanded upon.

In this new world under the ‘new normal’ it seems that anything is possible.

JON C. OGG

Posted on: November 12, 2009 – 10:28 am in Banking, Financial Stocks, Management Change, Politics, Rumors, Turnarounds, ,

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

Key Takeaways From Yahoo! Analyst Day (YHOO)

Yahoo LogoYahoo! Inc. (NASDAQ: YHOO) had its analyst day on Wednesday and the comments started coming out late yesterday.  This was the first real show and tell session it has had with Wall Street in roughly three years.  We wanted to highlight what we saw as the top takeaway issues from Yahoo!’s analyst day presentations.  These are not in any particular order, and some may overlap with news that was out yesterday during the trading hours.
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Posted on: October 29, 2009 – 9:59 am in Internet, Turnarounds, ,

The Fannie-Freddie Equity Conundrum (FNM, FRE)

burning-house-image4It is no secret that things could be much better at Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE).  But the last week or so has re-highlighted just how dire the situation is for these government sponsored entities and perhaps more importantly for the common shareholders. Both Freddie Mac and Fannie Mae were forced into federal conservatorship last year by Uncle Sam.

We have taken an in-depth look here at the situation and the past to get a feel for the future of these companies (GSE’s).  If you parse through the data and watch what has been happening in Washington D.C. of late, there is the clear reminder that these emperors have no clothes on.  In the world of Star Trek, these companies stockholders may be facing a Kobayashi Maru scenario.
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Posted on: October 25, 2009 – 7:45 am in Accounting, Bankruptcy, Bonds, Compensation, Corporate Governance, Cult Stock, Editor's Picks, Financial Stocks, Housing, Law, Politics, Regulation, Turnarounds, ,

Blockbuster’s Fate: Dying Store Model May Work (BBI, NFLX, CSTR, TIVO, CMCSA, TWX, AMZN)

Blockbuster LogoBlockbuster Inc. (NYSE: BBI) is dying if you read today’s headlines.  Word from most media outlets today is that Blockbuster may close some 960 stores.  Ouch.  That sounds as though there will be no stores left until you look further into it. SEC filings filed today disclose new credit pacts.  The company gave investors a glimpse of its plans.  If you can get past the headlines, the reaction was actually a positive one.
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Posted on: September 15, 2009 – 5:01 pm in Entertainment, Media, Retail, Turnarounds, , , , , , ,

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

Trader Crack: AIG Goes To $100 (AIG, C, BAC, HIG, MET, YHOO)

Bull and Bear ImageThe DJIA has risen for eight straight days and the verdict is still out as to how today’s close will go.  With major indexes trading over 50% above their March lows and with all the troubled and speculative financial stocks trading like the new ghetto replacement for crack, you know you are in the midst of a big bull market or a major bear market rally.  And this new call on American International Group, Inc. (NYSE: AIG) either proves that we are all going nuts in the euphoria or that this market cannot be scared and cannot be reasoned with.  AIG has doubled since August 19 and is up roughly 400% from lows.  And now here is the call we are starting to hear more and more as at least a possibility…. AIG at $100.

For starters, we are not just skeptical.  Call us, or call me, Thomas.  But after running the math, this is at least not out of the realm of possibilities.  This becomes a scary notion if you start interpolating the gains off of lows seen at some of the other troubled financial giants that took TARP money and had to get bailed out by Uncle Sam.

Citigroup, Inc. (NYSE: C) is actually up more than 400% from its lows; and it is still down more than 75% from its 52-week highs and down over 90% from its $50+ highs in 2007.  Bank of America Corporation (NYSE: BAC) is still down about 55% from its 52-week highs today and is down 66% from its highs in 2006. Hartford Financial Services Group Inc. (NYSE: HIG) also took TARP money and it is an insurer.  Hartford shares are actually up sixfold from their lows; yet the shares are still down about 66% from the 52-week high and down over 75% from the 2007 highs.  While AIG is in hock with Uncle Sam, and while it is perhaps the most hated company by most of Main Street of all surviving financial giants, imagine if you started just using the stock performance of other troubled financial giants to make price targets at AIG.
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Posted on: August 28, 2009 – 1:50 pm in Analyst Calls, Banking, Financial Stocks, Index, Turnarounds, , , , , ,

Is There Value Left In Eastman Kodak? (EK)

burning-money-picThis morning we started seeing increased trading activity in shares of the long-troubled photo giant Eastman Kodak Co. (NYSE: EK).  Then came the option alerts along with the doubling volume alert from VSInvestor.com.  Technically, this stock started to stabilize on Friday, then had a strong day yesterday, and today exploded with a 22% gain.  This move that took it to $4.00 has shares up more than 35% from the lows of last week.  We do not want to spend too much time addressing the rumor mill, but what we did want to look at was what sort of value there is here.  Or isn’t…
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Posted on: August 4, 2009 – 2:52 pm in Consumer Goods, Management Change, Rumors, Trading Alert, Turnarounds, Value Investing,

Comparing the Two GM’s: NewCo vs. Old GM (GMGMQ)

GM LogoGeneral Motors is still much of the talk since it exited bankruptcy protection early Friday.  This was a quick bankruptcy process and was well ahead of historic bankruptcy timelines, avoiding what many skeptics thought would be a long ugly process.  But the questions are still out there over what the situation is for the old GM under the “GMGMQ” ticker on the pink sheets and the new GM that is emerging post-bankruptcy.  We did a comparative presentation on each, but keep in mind that these will change daily or weekly and may not remain the case ahead.
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Posted on: July 13, 2009 – 8:55 am in Autos, Law, Turnarounds, ,

GM CFO Outlines IPO Timeline… Or Re-IPO (GMGMQ, GM)

Burning Money PicEveryone wants to know when an initial public offering of General Motors (GMGMQ) will occur.  Its emergence from bankruptcy has only expedited the curiosity of when the company will be public again.  GM’s new CFO Ray Young just gave a rather lengthy CNBC interview and this was among the issues discussed.

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Posted on: July 10, 2009 – 9:52 am in Autos, IPOs, Turnarounds, ,

The Best Short-Selling Opportunities Of The Year (C)(GE)(F)(SBUX)(SIRI)

angrybearThere is still some conversation about the federal government restricting short-selling activity in certain stocks. The counterargument to these restrictions is that short selling plays an important role in the valuation of securities by efficiently allowing investors to bet that a stock will fall as readily as they can bet that it will rise. Short sellers have the reputation, whether deserved or not, for trying to manipulate information about public companies with the hope of driving their prices down. That may be true.

24/7 Wall St. has come up with a list of the best short-selling opportunities between now and the end of the year. The list was chosen based on: 1) trading volume, 2) the total short position in the stock over the first half of the year, 3) a history of the short position in these stocks rising or falling rapidly, and 4) stocks in companies that tend to move on news throughout the year and not just on earnings information. Read More »

Posted on: July 5, 2009 – 5:54 pm in Airlines, Analyst Calls, Autos, Banking, Biotech, Casinos, Conglomerates, Consumer Electronics, Dividend, Drug companies, Editor's Picks, FDA, Green Biz, Hardware, Healthcare, Infrastructure, Internet, Large Cap Stocks, Medical, PC Companies, Pharmaceuticals, Private Equity, Retail, Short Interest, Software, Technology, Turnarounds, Wireless, , , , , , , , , , , , , , , , , , , ,

Rite Aid’s Turnaround Looking More Likely (RAD)

Rite Aid LogoRite Aid Corporation (NYSE: RAD) may have just made the last or one of the last announcements that saved the reputation as far as it being a stock that investors would stay interested in.  The drug store chain announced that it has received notice from the New York Stock Exchange that Rite Aid is now back in compliance with the exchange’s share price listing requirement now that its closing share price on June 30, 2009 and its average closing share price for the prior 30-days of trading were both above $1.00.  This will keep the company from pursuing that awful proposed reverse stock split.  These are not the only positive things happening for the company and for the stock.
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Posted on: July 1, 2009 – 2:10 pm in Retail, Stock Splits, Turnarounds,

Media Digest 7/1/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   California raced to approve a state budget its cutting deficit.

Reuters:   Ten more people may face charges in Madoff case.

Reuters:   Gannett (GCI) is laying off 1,000 more people.

Reuters:   China will delay a web filter for PCs sold in the country.

Reuters:   B of A’s (BAC) asset management unit got low bids.

Reuters:   Monster’s June job index fell.

Read More »

Posted on: July 1, 2009 – 2:54 am in Autos, Banking, Biotech, China, Commodities, Compensation, Conglomerates, Drug companies, Entertainment, FDA, Internet, Management Change, Metals, Pharmaceuticals, Press Digest, Turnarounds, , ,

Media Digest 6/11/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Fiat closed its deal for control of Chrysler.

Reuters:   California may be hit by an economic “meltdown.”

Reuters:   May foreclosures were third highest month ever recorded.

Reuters:   The US named a “pay czar” to track financial compensation.

Reuters:   May retail sales are forecast to be up .5% due to gas.

Reuters:   The US may crack down on derivatives trading. Read More »

Posted on: June 11, 2009 – 2:59 am in Autos, Banking, Consumer Electronics, Financial Stocks, Housing, Management Change, Oil & Gas, Press Digest, Technology Companies, Turnarounds, Wireless, , , , , , , , , , , , , , , , , ,

Media Digest 6/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters: The Supreme Court delays  Chrysler deal.

Reuters:   The cleared ten banks to repay TARP include JPMorgan (JPM), Goldmand Sachs (GS), American Express (AXP), Cpaital One(COF), State Street (STT), BBT (BBT), Morgan Stanley (MS), and US Bancorp (USB).

Reuters:   Senate Democrats revealed healthcare bill.

Reuters:   New York Times (NYT) will not close the Boston Globe Read More »

Posted on: June 10, 2009 – 3:02 am in Autos, Banking, Biotech, Brokerage Firms, Compensation, Consumer Electronics, Corporate Governance, Economy, Financial Stocks, Management Change, Oil & Gas, Press Digest, Private Equity, Turnarounds, Wireless, , , , , , , , , , , , , , , , , , , , , , ,

Media Digest 6/8/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   3D is bringing a new dimension to the computer world.

Reuters:   The Supreme Court was asked to block Chrysler sale.

Reuters:   China bankers called for US sales of yuan bonds.

Reuters:   IATA says global airline losses will hit $9 billion.

Reuters:   Soros says China influence growing faster than expected.

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Posted on: June 8, 2009 – 3:00 am in Airlines, Autos, Banking, China, Emerging Markets, Internet, Oil & Gas, PC Companies, Politics, Press Digest, Retail, Turnarounds, Wireless, , , , , , , , ,

Can Nanotech Make A Comeback For Investors? (ALTI, IBM, TINY, NSPH, PXN)

How long has it been since nanotechnology was on the tip of everyone’s tongue as the next great speculative investment frontier?  It seems like ancient history.  But we have seen news from Altair Nanotechnologies Inc. (NASDAQ: ALTI), IBM (NYSE: IBM), Harris & Harris Company, Inc. (NASDAQ: TINY), and Nanosphere, Inc. (NASDAQ: NSPH) this week.  We have even seen a bit of a move in the PowerShares Lux Nanotech (NYSE: PXN) ETF that tracks nanotech this week.

This week was actually more nanotech-related news than we have for some time even if there is still no clear direction on which way the political environment will treat nanotech in the months and years ahead.
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Posted on: May 22, 2009 – 3:06 pm in Cult Stock, ETF, Nanotech, Trading Alert, Turnarounds, Value Investing, , , , ,

Playboy Buyout Talk, Difficult Valuations (PLA)

Playboy Enterprises Inc. (NYSE: PLA) is sitting in a tough spot.  This morning there is a report that the company has the bunny franchise up for sale.  We have looked at this very notion in the past with too many issues over its valuation long before the media and market meltdown took this down to new lows.  There are some issues here which go much deeper than the notion of showing too much skin.
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Posted on: May 22, 2009 – 11:00 am in Entertainment, Media, Mergers and Buy Outs, Private Equity, Rumors, Turnarounds,

Media Digest 5/21/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Congress passed a bill to put restrictions on credit card companies.

Reuters:   The Fed mulled increasing securities during its April meeting.

Reuters:   Geithner said the US was making progress fighting the credit crisis.

Reuters:   Banks expect a windfall of fees from new stock issues by companies taking advantage of markets.

Reuters:   Bank of America (BAC) will seek to replay the government $45 billion by the end of the year.

Reuters:   California voters rejected the state budget.

Reuters:   Greenspan said the US economy is improving but said banks still face capital shortfalls.

Reuters:   Fiat’s CEO said that is a 50% chance for a deal with GM’s (GM) Opel.

Reuters:   Lehman has been questioned about a securities sale.

Reuters:   China’s economy may have lost steam.

WSJ:   GMAC will get $7 billion from the Treasury.

WSJ:   Economies in Japan, Mexico, and Germany are collapsing, putting pressure on trade talks.

WSJ:   The Indiana pension fund is challenging the terms of the Chrysler bankruptcy.

WSJ:   The Senate passed the FDA tobacco bill.

WSJ:   Chrysler named a new chairman.

WSJ:   New bidders have emerge for an AIG asset management unit.

WSJ:   Alcatel-Lucent (ALU) has gotten into the mobile phone ad business.

WSJ:   Sony’s (SNE) Stringer announced his turnaround plan.

WSJ:   All 10 banks that failed “stress texts” are on their way to raising capital.

WSJ:   The SEC passed rules that would give investors more power in nominating directors.

WSJ:   Crude oil moved above $60.

WSJ:   There is a question about whether Verizon (VZ) will keep paying its current dividend.

WSJ:   Talks between Microsoft (MSFT) and Yahoo! (YHOO) are continuing.

WSJ:   The UAW will be left with little influence after the auto industry restructuring.

WSJ:   The UAW, with assets of $1.3 billion, is the richest union in the nation.

WSJ:   Toll Brothers (TOL) sees hope in the housing industry.

WSJ:   Target (TGT) see earnings about to stabilize.

WSJ:   NetApp paid $1.5 billion to buy Data Domain.

WSJ:   Oil refiners are predicting higher gas prices.

NYT:   Driving is increasing despite higher gas prices.

NYT:   China may become more picky about buying debt, including US Treasuries.

NYT:   The US insurer of pensions in being pressured by the failure of several private pensions.

NYT:   IPOs are offering encouraging signs for investors.

FT:   Google (GOOG) dropped plans to invest in the newspaper industry.

FT:   Sony (SNE) will cut its supplier network to cut procurement costs by 20%.

FT:   California is facing deep budget cuts.

Bloomberg:   Some Fed officials doubt the the stabilization of the economy will persist.

Bloomberg:   AIG (AIG) is targeting Q1 2010 as the time for selling shares in one of its Asian units.

Douglas A. McIntyre

Posted on: May 21, 2009 – 3:03 am in Autos, Banking, Bonds, Consumer Electronics, Dividend, Financial Stocks, Internet, Labor & Unions, Management Change, Mergers and Buy Outs, Oil & Gas, Press Digest, Regulation, Retail, Turnarounds, , , , , , , , , ,

Winning Stocks on a Down Week (ADY, BCRX, DDRX, DGI, FAZ, LORL, RHT, WX)

This was a week of profit taking and a probable realization that a move of 30% and more from the lows in March was probably a bit much in the face of only consistent “less-bad” economic data.  But as every optimist says, “There is always a bull market somewhere.”  We saw a drop of  about -3.6% to 8,268.64, while the S&P 500 Index slid by -4.% to 882.88.  The NASDAQ was the ‘better’ of the losers with a drop of -3.4% to 1,680.14.  But there are many standout stocks, and some of the key big movers and winners this week were American Dairy Inc. (NYSE: ADY), Biocryst Pharmaceuticals Inc. (NASDAQ: BCRX), Diedrich Coffee Inc. (NASDAQ: DDRX), DigitalGlobe, Inc. (NYSE: DGI), Direxion Daily Financial Bear 3X Shares (NYSE: FAZ), Loral Space & Communications, Inc. (NASDAQ: LORL), Red Hat Inc. (NYSE: RHT) and WuXi PharmaTech Inc. (NYSE: WX).

Believe it or not, some of these are up exponentially off of the lows.  One is up 30-fold from the end of March, and amazingly the best winners were not in tech or biotech.  We have provided a weekly synopsis and the reason for their from the lows.
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Posted on: May 16, 2009 – 8:10 am in HI/LOW, The Week, Trading Alert, Turnarounds, , , , , , , ,