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Top Analyst Upgrades & Downgrades (AB, AMAT, ARMH, T, ERJ, HAS, IACI, INTC, KLAC, MAT, MRK, NVLS, POT, SWY, AMTD, VSEA)

Administrator — Fri, 14 Jan 2011 13:17:57 +0000

These are some of this Friday’s top analyst calls with upgrades, downgrades, and initiations seen from Wall Street research firms.

AllianceBernstein Holding L.P. (NYSE: AB) Cut to Neutral and $26 target at BofA/ML.
Applied Materials, Inc. (NASDAQ: AMAT) Raised target to $15 at BofA/ML.
ARM Holdings plc (NASDAQ: ARMH) Reiterated Neutral on overvaluations at BNP Paribas.
AT&T Inc. (NYSE: T) Reiterated Buy at Argus.
EMBRAER (NYSE: ERJ) Raised to Conviction Buy List at Goldman Sachs.
Hasbro Inc. (NASDAQ: HAS) Started as Buy at Jefferies.
IAC/InterActiveCorp. (NASDAQ: IACI) Cut to Neutral at Goldman Sachs.
Intel Corporation (NASDAQ: INTC) Reiterated Outperform and $28 target but raised estimates at Credit Suisse; Reiterated Buy at Argus; Maintained Buy with $27 target at Gleacher & Co.; Maintained Buy at Gabelli & Co.
KLA-Tencor Corporation (NASDAQ: KLAC) Raised target to $48 at BofA/ML.
Mattel Inc. (NASDAQ: MAT) Started as Buy at Jefferies.
Merck & Co., Inc. (NYSE: MRK) Maintained Buy on weakness at Argus.
Novellus Systems, Inc. (NASDAQ: NVLS) Raised target to $38 at BofA/ML.
Potash Corp. of Saskatchewan (NYSE: POT) Reiterated Outperform but Raised target to $189 at Credit Suisse.
Safeway Inc. (NYSE: SWY) Cut to Sell at S&P Equity Research (late-Thursday call).
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) Cut to Market Perform at BMO.
Varian Semiconductor Equipment Associates Inc. (NASDAQ: VSEA) Raised to Neutral with $45 target at BofA/ML.

You can join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: AB, AMAT, AMTD, ARMH, ERJ, HAS, IACI, INTC, KLAC, MAT, MRK, NVLS, POT, SWY, T, VSEA

Top Active Trader Alert Stocks (ALXA, AB, AIB, CSIQ, CHK, BORN, CIT, GNBT, HRBN, IMGN, LDK)

Administrator — Mon, 11 Oct 2010 13:01:53 +0000

Bonds may be closed for Columbus Day, but the U.S. stock market is open and there are many movers to watch. Some of the most active stocks or largest moves seen in shares of Alexza Pharmaceuticals Inc. (NASDAQ: ALXA), AllianceBernstein Holding L.P. (NYSE: AB), Allied Irish Banks plc (NYSE: AIB), Canadian Solar Inc. (NASDAQ: CSIQ), Chesapeake Energy Corporation (NYSE: CHK), China New Borun Corporation (NASDAQ: BORN), CIT Group, Inc. (NYSE: CIT), Generex Biotechnology Corp. (NASDAQ: GNBT), Harbin Electric, Inc. (NASDAQ: HRBN), Immunogen Inc. (NASDAQ: IMGN), and LDK Solar Co., Ltd. (NYSE: LDK).

Alexza Pharmaceuticals Inc. (NASDAQ: ALXA) is getting crushed after the FDA declined approval for its anti-psychotic drug: NDA review cycle is complete and the application is not ready for approval in its present form. Shares are down 47% at $1.60 on over 700,000 shares.

AllianceBernstein Holding L.P. (NYSE: AB) is indicated up less than 1% after Barron’s gave it a cover story as “A Deep Value Play.”

Allied Irish Banks plc (NYSE: AIB) is not seeing news, but the notion that it was up this morning almost seems like a reason for celebration… AIB shares are up 1% at $1.17.

Canadian Solar Inc. (NASDAQ: CSIQ) is up 0.6% at $15.59 and the indications were higher based upon a new CFO appointment after an SEC inquiry. It backed prior guidance and said shipments would be at the mid-point to higher-end of guidance.

Chesapeake Energy Corporation (NYSE: CHK) is trading up after CNOOC from China is investing $2.16 billion in Chesapeake for one of its large shale projects. Shares are up 5% at $24.28.

China New Borun Corporation (NASDAQ: BORN) is trading like ‘born to run’ after being given the #1 position in the IBD 100 this weekend. Shares are up 4.5% at $16.80, a new all-time high above the prior high from last week of $16.14.

CIT Group, Inc. (NYSE: CIT) is trading up about 1.5% at $41.35 after Barron’s reported that Thain is turning it around.

Generex Biotechnology Corp. (NASDAQ: GNBT) is up 20% at $0.52 ahead of key data being presented today.

Harbin Electric, Inc. (NASDAQ: HRBN) received a going-private proposal from its CEO for $24.00 per share in cash. Volume is light but so far shares are up over 27% at $25.50, above the offer.

Immunogen Inc. (NASDAQ: IMGN) is trading up by 9% at $7.75 as a carry-on trade from Friday after it gave new cancer trial data this morning.

LDK Solar Co., Ltd. (NYSE: LDK) raised guidance on revenue and shipment estimates. Shares are up 9.3% at $10.71.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Pre-Market Activity, Trading Alert Tagged: AB, AIB, ALXA, BORN, CHK, CIT, CSIQ, GNBT, HRBN, IMGN, LDK

The Unusual Suspects for the Week Ahead (ALXA, ALKS, AB, AAPL, VZ, BORN, CIT, CEG, IMGN, JAZZ, MSFT, POT, BHP, RGC, CNK, YHOO)

Administrator — Sun, 10 Oct 2010 15:34:17 +0000

Earnings season is just getting underway and the Dow Jones Industrial Average hit 11,000 on Friday. There are many stocks to watch outside of earnings this week. The cast of characters in The Unusual Suspects includes Alexza Pharmaceuticals Inc. (NASDAQ: ALXA), Alkermes, Inc. (NASDAQ: ALKS), AllianceBernstein Holding L.P. (NYSE: AB), Apple Inc. (NASDAQ: AAPL), Verizon Communications Inc. (NYSE: VZ), China New Borun Corporation (NASDAQ: BORN), CIT Group, Inc. (NYSE: CIT), Constellation Energy Group Inc. (NYSE: CEG), Immunogen Inc. (NASDAQ: IMGN), Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ), Microsoft Corporation (NASDAQ: MSFT), Potash Corp. of Saskatchewan, Inc. (NYSE: POT), Regal Entertainment Group (NYSE: RGC), Cinemark Holdings Inc. (NYSE: CNK), and Yahoo! Inc. (NASDAQ: YHOO). We have included a review and preview for each where applicable. This week is more filled with biotech news than others due to a busy FDA calendar.

A full earnings calendar is available here for the week, including INTC, JPM, GE, APOL, SWY, AMD, GOOG, JBHT, INFY, and MAT. Also, gold is getting jittery now and Friday’s $1,345 handle closed right in the middle of Thursday’s more than $30 point swing from high to low as it traded above $1,360 and below $1,330. We took a look at the gold stocks and included a list of gold stocks that appear to be overvalued against peers and a list that appears to be undervalued gold stock against peers.

Alexza Pharmaceuticals Inc. (NASDAQ: ALXA) has an FDA PDUFA date for Monday regarding a decision on its AZ-004 as its lead program for treatment of agitation in schizophrenic or bipolar disorder. patients. At $3.03, its 52-week range is $1.93 to $3.92 and shares traded roughly in a $3.10 to $2.70 range in the last week.

Alkermes, Inc. (NASDAQ: ALKS) has a decision due Tuesday for the approval of its opioid addiction treatment Vivitrol. The drug is already approved as an injection treatment for alcohol dependence and the company has already had Phase III results showing that Vivitrol helped patients against opioid addiction. A panel has already recommended approval of the drug. At $15.92, it hit a new 52-week high on Friday and the range is $7.54 to $15.98 and it traded in a wide range last week with a low close to $14.60 before it hit a new 52-week high.

AllianceBernstein Holding L.P. (NYSE: AB) was given the cover story from Barron’s this weekend. The article titled “A Deep Value Play” said that it got hit worse than most of its rivals in the financial crisis and it wonders if its new CEO (former Goldman Sachs member) turn it around. Barron’s points out that at $26.59 on October 1, shares were trading 64.7% below a pre-crisis high of $75.35.

Apple Inc. (NASDAQ: AAPL) has not yet formally announced its decision to sell the CDMA phone via Verizon Communications Inc. (NYSE: VZ). The latest rumor is the umpteenth time the rumor has been out that a CDMA iPhone is coming to Verizon. We expect formal confirmation on this soon, maybe as soon as this week or next week.

China New Borun Corporation (NASDAQ: BORN) is new as a stock and it produces and distributes corn-based edible alcohol in China. The company probably just got a lot more famous (if it was even known before) after this weekend because it unseated Netflix as the #1 stock in the Investors Business Daily 100. The IBD 100 might not ramp it but it will be more on the map than ever now for many momentum investors. IBD gave it a positive article last week as well and last Monday it was trading under $11.00 per share. At $16.08, it hit a 52-week high on Friday and the post-IPO range this year is $4.80 to $16.14.

CIT Group, Inc. (NYSE: CIT) was given a very positive article in Barron’s called “On the Road to Redemption.” Barron’s noted, “The financial crisis pushed CIT into bankruptcy and John Thain out the door at Merrill Lynch. Together, they seem to be faring a lot better.” At $40.79, its 52-week range is $24.83 to $42.94. Look for a pop on Monday if the market holds up.

Filed under: ADR, Biotech, Calendar, Financial Stocks, Retail, Rumors, Technology Companies, The Week Tagged: AAPL, AB, ALKS, ALXA, BHP, BORN, CEG, CIT, CNK, IMGN, JAZZ, MSFT, POT, RGC, VZ, YHOO

Media Digest 12/3/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

247wallst — Thu, 03 Dec 2009 08:57:05 +0000

Reuters: Affluent borrowers are being made credit card offers. Most other people are rarely solicited.

Reuters: Bank of America (NYSE:BAC) will repay $45 billion in TARP funds.

Reuters: AMR (NYSE:AMR) and TPG have offered JAL $1.1 billion in investment capital to block an investment from Delta (NYSE:DAL).

Reuters: Bernanke will defend the Fed’s role as he seeks a second term.

Reuters: A poll shows most Americans want the public health option in new healthcare legislation.

Reuters: A bill to further regulate large financial firms and audit the Fed is making progress.

Reuters: ECB will slowly exit its role in the credit markets.

Reuters: GE (NYSE:GE) and Comcast (NASDAQ:CMCSA) have announced their deal for NBCU.

Reuters: The Monster online jobs index slipped last month.

Reuters: The dominance of the GM board may make a CEO search hard.

WSJ: Goldman Sachs (NYSE:GS) is aggressively defending its pay policy to large investors.

WSJ: GM’s Whitacre will push for market share gains.

WSJ: Bernstein (NYSE:AB) is resurrecting its capital markets business.

WSJ: Siemens (NYSE:SI) posted a quarterly loss.

WSJ: Harley Davidson (NYSE:HOG) received concessions from its unions.

WSJ: Cyber Monday sales rose 5%.

WSJ: Google (NASDAQ:GOOG) will give publishers more control over their content.

WSJ: Nokia (NYSE:NOK) is sticking with its Symbian operating system

WSJ: Wal-Mart (NYSE:WMT) launched a video game price war.

WSJ: AT&T (NYSE:T) and Verizon (NYSE:VZ) dropped suits against each other.

WSJ: Morningstar is moving into the credit ratings business.

NYT: The Fed Beige Book showed modest improvement in the economy.

NYT: Geithner expects that TARP to end soon.

FT: The Comcast bid values NBCU at $38 billion.

FT: UK banks are owed $5 billion by Dubai World.

FT: The FDIC say millions of Americans do not have access to banks.

Douglas A. McIntyre

Posted in Press Digest Tagged: AB, AMR, BAC, CMCSA, DAL, GE, GOOG, GS, HOG, NOK, SI, T, VZ, WMT

The Week of Proof for A123 (AONE, CBAK, ABAT, CSGH, BRK-A, GE, QCOM, MOT, AB, PG)

247wallst — Mon, 28 Sep 2009 10:51:54 +0000

A123 Systems Inc (NASDAQ: AONE) is still likely going to be one of the highlights of trading activity for the week, but the valuation is all based on the future rather than on the performance of the past. The maker of lithium-ion car batteries turned out to be the second best IPO of 2009 in the United States, so the company’s execution from here is paramount. That is what a 50% gain on the first day will do for you. The deal was for 28.1 million shares at $13.50, although it opened at $17.00 and it never went below $16.56 in the aftermarket.

While a highlight is one thing, A123 has competition and its losses are off the chart. China Bak Battery, Inc. (NASDAQ: CBAK) and Advanced Battery Technologies, Inc. (NASDAQ: ABAT) are in the space but have far less hype.

China BAK Battery has a $237 million market cap and generated $245 million in 2008 revenues. Advanced Battery Technologies has $263 million market cap and had $45 million in 2008 revenues. China BAK Battery lost money, but Advanced Battery Technologies is actually profitable. Wall Street and Main Street still have no real clue about when A123 will really be profitable. China Sun Group (NASDAQ: CSGH) is currently in the testing phase of lithium iron phosphate. That happens to be what gives A123 such a valuation boost.

As we have noted, Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) may be the real winner here with his stake of BYD in China.. A123 has an impressive lineup of stakeholders here with General Electric Co. (NYSE: GE) holding an 11.7% stake, North Bridge and Sequoia from the VC world, Qualcomm Inc. (NASDAQ: QCOM) has a 7.6% stake and Motorola Inc. (NYSE: MOT) has a 6.9% stake. AllianceBernstein Holding L.P. (NYSE: AB) and Procter & Gamble (NYSE: PG) are also listed under the investors of the company.

A123 is still in the mix between making batteries for cars and for handheld devices. It seems as though BYD is still in the lead and these other Chinese battery companies still seem interesting as a result of the valuation. The premium is in for A123, so now it has to prove itself.

JON C. OGG

Posted in Alternative Energy, Autos, Buffett, China, Consumer Electronics, Green Biz, IPOs Tagged: AB, ABAT, AONE, BRK-A, CBAK, CSGH, GE, MOT, PG, QCOM

In A123 Battery IPO, Buffett Indirectly Wins (AONE, BRK-A, GE, QCOM, MOT, SCMR, AB, PG, AAPL)

247wallst — Tue, 15 Sep 2009 15:35:08 +0000

Next week is still supposed to mark the initial public offering of what me be a very hot IPO. Auto electric-battery maker A123 Systems Inc. is tentatively set to launch and begin trading mid-next-week under the stock ticker “AONE” on NASDAQ. We have penciled in a date of September 23 or 24, but if you have been watching IPOs for years you know that date can change. This one has been in the IPO hopper almost forever as the IPO filing date was in August 2008.

We’ll get to this a little later, but we did note in the title that Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) may be the indirect winner here in this offering. A123 raised a fairly recent round led by General Electric Co. (NYSE: GE) and affiliates, which has a 11.7% stake. At the time the company filed to come public it has raised roughly $160 million and it has large stakes held by venture capital firms (North Bridge, Sequoia and others), Qualcomm Inc. (NASDAQ: QCOM) has a 7.6% stake and Motorola Inc. (NYSE: MOT) has a 6.9% stake. Gururaj “Desh” Deshpande, the co-Founder and Chairman of Sycamore Networks, Inc. (NASDAQ: SCMR), also has a 9.9% stake. AllianceBernstein Holding L.P. (NYSE: AB) and Procter & Gamble (NYSE: PG) are also listed under the investors of the company.

It has received a $249 million grant from the U.S. government and the State of Michigan has awarded it a $10 million grant and offered it up to $4 million in low interest loans as an incentive to establish a lithium-ion battery manufacturing plant in Michigan. The company has also applied for direct loans under the DOE’s $25 billion Advanced Technology Vehicles Manufacturing Loan Program to support this manufacturing expansion, and it believes it will be permitted to borrow up to $235 million under the DOE program.

The terms of the deal are 25.68+ million shares expected in a range of $8.00 to $9.50 per share. Lead underwriters are listed as Morgan Stanley and Goldman Sachs, with additional underwriters listed as Bank of America Merrill Lynch, Deutsche Bank Securities, Lazard, and Pacific Crest Securities. 25 million shares are being sold by the company and some 680,501 shares are being sold by insiders. The company noted that it will have 100,426,049 common shares outstanding after the IPO, so its implied market cap at the mid-point of the offering will be approximately $875 million.

A123 Systems is in a sweet spot as it makes rechargeable lithium-ion batteries used in hybrid-electric and electric vehicles. But the company has also never been profitable and is not cash flow positive. So it is a high-risk IPO, but it also comes with a huge potential gain ahead because of the notion that electric cars and hybrid vehicles are still going to be the next new thing in autos with a currently very low market penetration.

It has a very impressive lsate of customers and partners which includes making batteries for BMW, Chrysler, GM, Shanghai Automotive Industry Corp., and Delphi. A123 is also working on battery and power designs for new markets in trucks and buses, and even for parts of the electric power grid. It sells smaller batteries for Gillette under P&G and sells batteries for cordless tools of Black & Decker.

Warren Buffett is not an investor in A123. But the reason Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) will indirectly win from this is because of a large stake that was taken in BYD in China. BYD is a Chinese battery, mobile phone, and electric car company. Fortune magazine noted Buffett’s right hand man, Charlie Munger, called BYD founder Wang Chuan-Fu something to the tune of a cross between Thomas Edison and Jack Welch. Berkshire Hathaway bought 10% of BYD for $230 million and Wang turned down an offer to buy a 25% stake in the company. BYD’s revenues in 2008 almost made the $4 billion mark.

BYD has also begun selling a plug-in electric car with a backup gasoline engine, and sells cellphone batteries and batteries for other consumer electronics such as Apple Inc. (NASDAQ: AAPL) and its iPod and iPhone. And the new goal is to make the batteries recycleable. BYD trades under the Hong Kong ticker “1211″ and here is fundamental data on the stock. This A123 IPO from A123 is going to allow for more direct comparisons of battery makers, even if it is somewhat indirect and cross-border.

Back to A123…. During the year ended December 31, 2008, 18%, 76%, and 6% of A123′s product revenue was derived from sales in the transportation, consumer, and electric grid markets, respectively. In the first half of 2009, 70% of A123′s product revenue was derived from sales in the transportation market and 30% was derived from sales in the consumer market.

A123 said in its latest IPO documentation, “We estimate that the net proceeds to us from this offering will be approximately $201.8 million and the net proceeds to the selling stockholders will be $5.5 million, assuming an initial public offering price of $8.75 per share…. “ The selling stockholders consist of our chief executive officer and all of its founders.
A123′s latest amendment to its S-1 is here.

JON C. OGG
September 15, 2009

Posted in Alternative Energy, Autos, Buffett, Conglomerates, Consumer Electronics, Editor's Picks, Green Biz, Infrastructure, IPOs, Private Equity Tagged: AAPL, AB, AONE, BRK-A, GE, MOT, PG, QCOM, SCMR

California Muni Bond Funds Defy Hangman (AB, BLK, EV, MS, AKP, BCK, RAA, BFZ, BCL, BJZ, MUC, CEV, EVM, CCA, IIC, IQC, ICS, NUC, NVX, NAC, NZH, NXC, PZC, PCK)

247wallst — Tue, 16 Jun 2009 17:00:13 +0000

It seems that even the Governator is having a hard time saving California, and many are blaming him for the state’s ballooning budget deficit. The company is facing billions in deficits and the headlines around the web put the state only weeks away from a financial meltdown. The state entered another moratorium for foreclosures, yet ask anyone from outside of the state if they think property has yet to get dirt cheap there. There are probably 20 or so single-state closed-end municipal bond funds that investors own. These come from AllianceBernstein Holding L.P. (NYSE: AB), BlackRock, Inc. (NYSE: BLK), Eaton Vance Corp. (NYSE: EV), Morgan Stanley (NYSE: MS), Nuveen, and PIMCO. Interestingly enough, most of these municipal bond funds are up on the day. This is also not the full list in the entirety of the California single-state muni funds and does not include the open-ended funds:

Alliance California Municipal Income Fund Inc. (AKP)
+0.15% at $11,34; 52-week trading range is $6.56 to $14.23

BlackRock California Insured Municipal Income Trust (BCK)
+0.27% at $11.19; 52-week trading range is $7.15 – 13.45

BlackRock California Investment Quality Municipal Trust (RAA)
+0.47% at $10.59; 52-week trading range is $6.80 to $12.52

BlackRock California Municipal Income Trust (BFZ)
+0.26% at $11.65; 52-week trading range is $7.35 to $14.54

BlackRock California Municipal Income Trust II (BCL)
+2.3% at $11.45; 52-week trading range is $6.85 to $14.00

BlackRock California Municipal 2018 Term Trust (BJZ)
-1.3% at $13.60; 52-week trading range is $9.02 to $15.49

BlackRock MuniHoldings California Insured Fund, Inc. (MUC)
+0.55% at $10.84; 52-week trading range is $5.50 to $12.57

Eaton Vance California Municipal Income Trust (CEV)
+1% at $9.99; 52-week trading range is $5.26 to $13.90

Eaton Vance Insured California Municipal Bond Fund (EVM)
+0.4% at $10.42; 52-week trading range is $6.22 to $13.70

MFS California Insured Municipal Fund (CCA)
+1.8% at $9.38; 52-week trading range is $6.09 to $11.92

Morgan Stanley California Insured Municipal Income Trust (IIC)
+0.27% at $11.23; 52-week trading range is Z$7.24 to $13.56

Morgan Stanley California Quality Municipal Securities (IQC)
+0.9% at $10.52; 52-week trading range is $6.75 to $13.77

Morgan Stanley Insured California Municipal Securities (ICS)
FLAT at $12.25; 52-week trading range is $9.95 to $15.00

Nuveen California Quality Income Municipal Fund (NUC)
+0.9% at $11.80; 52-week trading range is $7.44 to $13.65

Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
+1.6% at $11.45; 52-week trading range is $7.25 to $13.21

Nuveen California Dividend Advantage Municipal Fund (NAC)
+0.3% at $10.83; 52-week trading range is $7.24 to $13.74

Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
+0.65% at $10.55; 52-week trading range is $6.94 to $13.34

Nuveen California Select Tax Free Portfolio (NXC)
+0.4% at $12.21; 52-week trading range is $9.15 to $14.50

PIMCO California Municipal Income Fund III (PZC)
+3.8% at $7.97; 52-week trading range is $4.28 to $13.93

PIMCO California Municipal Income Fund II (PCK)
+4.9% at $7.89; 52-week trading range is $4.25 to $14.17

PIMCO California Municipal Income Fund (PCQ)
+2% at $10.52; 52-week trading range is $6.85 to $16.20

There is a very simple reason we did not include the dividend yields in these. Many have seen very sporadic dividend yields and these change often from month to month. In certain extreme cases, the dividends can also be skipped.

It used to be that you could buy the insured municipal funds with no perceived risk. But in today’s world, the questions loom about how much strength the insurer for the single muni issuers has. Too many got hung up in mortgage insurance woes.

Jon C. Ogg
June 16, 2009

Posted in Bonds, Dividend, Mutual Funds, Politics Tagged: AB, AKP, BCK, BCL, BFZ, BJZ, BLK, CCA, CEV, EV, EVM, ICS, IIC, IQC, MS, MUC, NAC, NUC, NVX, NXC, NZH, PCK, PZC, RAA

Media Digest 6/15/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

247wallst — Mon, 15 Jun 2009 08:01:37 +0000

Reuters: The heads of the emerging markets, the so-called BRICs, held their first global summit.

Reuters: Obama will be tested this week on financial reforms.

Reuters: Rich nations are working on an exit from stimulus packages.

Reuters: Pfizer (PFE) is trying to do deals to improve its emerging market presence.

Reuters: China is playing down hopes for a fast recovery.

Reuters: US defense firms are looking at M&A and global markets to increase sales.

Reuters: A Chinese firm says its deal to buy Hummer is on track.

Reuters: Bally reached a deal to come out of Chapter 11.

Reuters: Icahn is mulling another run at Delphi.

WSJ: The Administration’s details are set for regulating the financial industry.

WSJ: The hospital industry is troubled by some healthcare cuts.

WSJ: Federal intervention has pitted companies getting money against those which have not.

WSJ: Lower natural gas prices are hurting the coal industry.

WSJ: The question of whether this bull market is circular or secular is starting to be raised.

WSJ: Boeing’s (BA) strategy of aggressively building new planes is being questioned.

WSJ: Auto suppliers are attempting to rebuild their industry.

WSJ: Web ads have started to open the door to viruses. (YHOO)(GOOG)(IACI)(TWX)(MSFT)(VIA)(CBS).

WSJ: Sinopec (SNP) is in talks to buy Addax.

WSJ: TomTom will sell shares to cut debt.

WSJ: Six Flags filed for Chapter 11.

WSJ: Blackberry RIM (RIMM) rivals are trying to undermine its business sales. (NOK)(AAPL)(PALM).

WSJ: State budget deficits will test Washington.

WSJ: The Huntsman buyout will be tested in a Texas court (CS)(DB)(HUN).

WSJ: The Fed is in a bind about buying Treasuries.

WSJ: BlackRock (BLK) may be a trendsetter in the fund industry. (AB).

WSJ: Radio broadcasters in small markets may do better than larger rivals.

WSJ: The battle for Data Domain has caused a culture clash in the tech industry. (NTAP)(EMC).

WSJ: An Alcan (ACL) deal with Nestle may hurt it deal with Novartis.

NYT: AIG (AIG) is taking Greenberg to court.

NYT: The recession is making Forbes pinch pennies.

NYT: A new guide shopping using the Apple (AAPL) iPhone is getting large numbers of downloads.

NYT: IBM (IBM) will help clients fight cost and complexity.

NYT: Some artists are saying that Google (GOOG) cannot use their work for free.

NYT: Authors can autograph work on the Amazon (AMZN) Kindle.

FT: Citigroup (C) and the IFC are in a global trade funding alliance.

FT: Cost cutting film makers are remaking Hollywood.

FT: A Morgan Stanley (MS) deal with Citigroup to merge brokerages may take two years.

Bloomberg: Treasuries advanced as Russia said it had full confidence in the US dollar.

Douglas A. McIntyre

Posted in Press Digest Tagged: AAPL, AAPPL, AB, AIG, AMZN, C, CBS, CS, DB, EMC, GOOG, HUN, IACI, IBM, MS, MSFT, NOK, NTAP, PALM, PFE, RIMM, SNP, TWX, VIA, YHOO

Merging The Mutual Fund Companies: Janus (JNS) And Alliance Bernstein (AB) Will Be Sold

247wallst — Wed, 14 Jan 2009 15:02:04 +0000

Being in the mutual fund and institutional money management business is almost as bad as being in commercial banking. Several companies in the industry have lost half of their assets between redemptions and the falling value of portfolios which have dropped with the market.

If the market continues to fall some of the public companies in the fund business will begin to lose large amounts of money. Their portfolio management, back office, marketing, trading, and administration costs can only be chopped by so much.

Based on their share prices, two fund companies are doing much worse than their peers. Shares in Alliance Bernstein (AB) and Janus (JNS) are trading off almost 70% over the last year.

The fund operators that are doing relatively better are T Rowe Price (TROW), Franklin (BEN), and Blackrock (BLK). For them to pick up the assets by purchasing one of the weaker companies would be an extraordinary deal. The costs which could be cut from management and back office expenses by combining two operators would be substantial.

Fidelity and Vanguard could also be buyers but as private companies that would seem to be less likely

There is not much M&A in the markets now, but one of these deals is less than six months away.

Douglas A. McIntyre

Posted in Financial Stocks Tagged: AB, BEN, BLK, JNS, TROW

The Wisdom Of Panic: Firing CEOs When The Chips Are On The Line

247wallst — Tue, 13 Jan 2009 06:08:54 +0000

The Wall Street Journal has made a great deal of the fact that six big company CEOs have been sacked in the last eight days. Chief executives are fired all the time, so the statistical analysis behind the idea that this is something special may be bogus, but the point is taken.

In normal economic periods, CEOs are forced out for ruining earnings that should be robust or doing something like going to a strip club and putting it on the company American Express as one particularly bold fellow from telecom company Savvis did two years ago.

During a recession, stockholders and boards are faced with share prices that can move down 80% or 90% in a year. In places like Citigroup (C), the fault many rest inside the company. At operations like book retailer Borders Group (BGP) no one is going to fix a problem which is caused by a fundamental change in consumer behavior. All the head of Borders can do it close stores and cut people.That requires almost no skill, just a person with a heart made of coal.

Replacing a CEO, even if he has modest flaws, during a recession is almost certainly a poor idea A new man needs six months to meet everyone, find out how to spell the company’s name, and get a handle on why things are not going right. Most recruiters, in rare moments of honesty, would admit that many new CEOs don’t work out, no matter how thorough the vetting process was. It is not unlike drafting a professional football player. Sometimes men who look good on paper can’t make it at the next level.

Saving or preserving a company in a vicious downturn does requires some experience and experience that is entirely related to an industry and even an individual company. Knowing what buttons to push is an underestimated skill.

Recently, mutual fund company Alliance Berstein (AB) fired its CEO, a man with forty years at the firm. It brought in a manager from Merrill Lynch who was probably going to lose his job due to the broker merging with Bank of America (BAC).

Alliance Bernstein’s performance had been awful, but that was because it shared a problem which had run through the industry. People holding funds where taking their money out. The value of all assets were being undermined by a falling market.

Most CEOs are not sympathetic characters, but most have the value of experience. When the world starts to cave in, that is not altogether irrelevant.

Douglas A. McIntyre

Posted in Management Change Tagged: AB, BAC, BGP, C