24/7 Wall St. » ALL

24/7 Wall St. Closing Bell (LNKD, FDX, ALL, RHT, SKS, FSLR, SPWR, AES, DUK, EL, WPO, EXC, MSG, AWR, BBEP, DNDN, DISH, LPX, KID, JKS, TSN, BAGL, DLB, BODY)

Paul Ausick — Fri, 04 May 2012 20:07:31 +0000

The major US stock indexes opened lower this morning following a weak report on non-farm payrolls (our coverage here). The lack of any further data to chew over left the markets with nothing to do but worry about slowing growth. Energy stocks led the slide as crude prices continued to fall (more coverage here). The US dollar index rose today, now up 0.35% at 79.495. The GSCI commodity index is down about -1.3% at 6769.36, with commodities mixed on the gains for the dollar. WTI crude oil closed down -4.6% at $97.81/barrel, its lowest level since mid-February, and Brent crude trades down -2.48% at $113.20/barrel. Gold settled up 0.6% today, at $1,645.20/ounce.

The unofficial closing bells put the DJIA down more than 168 points to 13,038.04 (-1.28%), the NASDAQ fell nearly 68 points (-2.25%) to 2,956.34, and the S&P 500 fell -1.62% or more than 22 points to 1,369.09.

There were several analyst upgrades and downgrades today, including LinkedIn Corp. (NYSE: LNKD) target price raised to $140 at Susquehanna; FedEx Corp. (NYSE: FDX) raised to ‘strong buy’ at Raymond James; The Allstate Corp. (NYSE: ALL) raised to ‘overweight’ at Barclays; Red Hat Inc. (NYSE: RHT) started as ‘outperform’ at BMO; and Saks Inc. (NYSE: SKS) reiterated ‘buy’ and target price of $14 at Argus.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: First Solar Inc. (NASDAQ: FSLR) is down -6% at $16.98 after posting a new 52-week low of $16.80 earlier today (more solar coverage here); SunPower Corp. (NASDAQ: SPWR) is down -2.1% at $5.58; AES Corp. (NYSE: AES) is down -0.7% at $12.13 (more utilities coverage here); Duke Energy Corp. (NYSE: DUK) is up 0.9% at $21.60; Estée Lauder Companies Inc. (NYSE: EL) is down -5.8% at $60.44 (more coverage here); The Washington Post Co. (NYSE: WPO) is down -5.4% at $355.88; Exelon Corp. (NYSE: EXC) is down -0.7% at $38.54; and The Madison Square Garden Co. (NASDAQ: MSG) is up 3.7% at $37.87 after posting a new 52-week high of $38.38..

On Monday we get earnings from American States Water Co. (NYSE: AWR), Breitburn Energy Partners L.P. (NASDAQ: BBEP), Dendreon Corp. (NASDAQ: DNDN), Dish Network Corp. (NASDAQ: DISH), Louisiana Pacific Corp. (NYSE: LPX), Kid Brands Inc. (NYSE: KID), Jinkosolar Holding Co. Ltd. (NYSE: JKS), and Tyson Foods Inc. (NYSE: TSN).

Other standouts from today include the following stocks:

Einstein Noah Restaurant Group, Inc. (NASDAQ: BAGL) is up 19.9% at $16.84 after posting a new 52-week high of $17.68 earlier today. The bagel maker and restaurateur reported strong earnings and said it would begin to explore strategic options.

Dolby Laboratories Inc. (NYSE: DLB) is up 17.5% at $44.22. The company reported strong earnings and has signed a deal with Microsoft Corp. (NASDAQ: MSFT). More coverage here.

Body Central Corp. (NASDAQ: BODY) is down -47.8% at $15.11. The young women’s apparel seller reported poor earnings and forecast more of the same until at least back-to-school season.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

11:30 a.m. – 3- and 6- month bill auction
3:00 p.m. – Consumer credit report

Have a great weekend.

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AES, ALL, AWR, BAGL, BBEP, BODY, DISH, DLB, DNDN, DUK, EL, EXC, FDX, FSLR, JKS, KID, LNKD, LPX, MSG, RHT, SKS, SPWR, TSN, WPO

Top Analyst Upgrades & Downgrades (AIR, ALL, EPD, FDX, FSLR, HON, JDSU, LNKD, BIN, RHT, SKS, SFY, SPRD, SPWR, TRLG, VCLK, WFM)

Administrator — Fri, 04 May 2012 12:24:05 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall Street research calls this Friday.

AAR Corporation (NYSE: AIR) named Bear of the Day at Zacks.

The Allstate Corporation (NYSE: ALL) Raised to Overweight at Barclays.

Enterprise Products Partners. LP (NYSE: EPD) Started as Outperform at Credit Suisse.

FedEx Corporation (NYSE: FDX) Raised to Strong Buy at Raymond James.

First Solar Inc. (NASDAQ: FSLR) maintain HOLD with $20 target at Canaccord Genuity.

Honeywell International (NYSE: HON) named Bull of the Day at Zacks.

JDS Uniphase Corporation (NASDAQ: JDSU) Reiterated Buy with $17 target at Argus.

LinkedIn Corporation (NYSE: LNKD) target raised to $140 at Susquehanna.

Progressive Waste Solutions Ltd. (NYSE: BIN) Cut to Neutral with $23 target at Credit Suisse.

Red Hat, Inc. (NYSE: RHT) Started as Outperform at BMO.

Saks Inc. (NYSE: SKS) Reiterated Buy and $14 target at Argus.

Spreadtrum Communications (NASDAQ: SPRD) Reiterated Buy and raised target to $21 at Canaccord Genuity.

SunPower Corporation (NASDAQ: SPWR) Raised to Hold at ThinkEquity.

Swift Energy Company (NYSE: SFY) Reiterated Buy but cut target to $40 at Canaccord Genuity.

True Religion Apparel, Inc. (NASDAQ: TRLG) named value stock of the day at Zacks.

ValueClick, Inc. (NASDAQ: VCLK) Raised to Buy at S&P Capital IQ (late-Thursday call).

Whole Foods Markets, Inc. (NASDAQ: WFM) Raised to Overweight at JPMorgan.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls Tagged: AIR, ALL, BIN, EPD, FDX, FSLR, HON, JDSU, LNKD, RHT, SFY, SKS, SPRD, SPWR, TRLG, VCLK, WFM

Top Analyst Upgrades & Downgrades (ALL, GWRE, KMT, LVS, LEAP, LO, PCS, MWW, P, PIR, TM, ZNGA)

Administrator — Mon, 05 Mar 2012 13:11:16 +0000

These are some of this Monday’s top analyst upgrades, downgrades, and initiations seen in Wall Street research calls.

Allstate Corporation (NYSE: ALL) Raised to Buy and $36 target at Argus.

Guidewire Software, Inc. (NYSE: GWRE) Started as Buy at Deutsche Bank; Started as Neutral at Citigroup; Started as Hold at Stifel Nicolaus.

Kennametal Inc. (NYSE: KMT) named as Value stock of the day at Zacks.

Las Vegas Sands (NYSE: LVS) Reiterated Outperform and raised target to $64 at Credit Suisse.

Leap Wireless International, Inc. (NASDAQ: LEAP) Cut to Market Perform at Bernstein.

Lorillard, Inc. (NYSE: LO) named as Bull of the Day at Zacks.

MetroPCS Communications, Inc. (NYSE: PCS) Cut to Market Perform at Bernstein.

Monster Worldwide, Inc. (NYSE: MWW) Started as Outperform at BMO.

Pandora Media, Inc. (NYSE: P) Raised to Buy at Stifel Nicolaus.

Pier 1 Imports (NYSE: PIR) raised estimates and target to $20 by Oppenheimer.

Toyota Motor Corporation (NYSE: TM) Raised to Outperform at Credit Suisse.

Zynga Inc. (NASDAQ: ZNGA) Cut to Neutral at JPMorgan.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ALL, GWRE, KMT, LEAP, LO, LVS, MWW, P, PCS, PIR, TM, ZNGA

P&C Insurers Face Above-Normal Tornado Expectations In 2012 (ALL, PGR, BRK.B)

Administrator — Tue, 21 Feb 2012 16:15:38 +0000

Before you hit the panic button too hard, ask yourself just how accurate you think the weatherman is. All cynical thinking aside, AccuWeather.com is calling for an above-normal year of tornado activity in 2012. This is on the heels of what was nearly a record year in 2011. In 2011, there were 1,709 tornadoes and the record is said to be 1,817 back in 2004.

There is an obvious observation… Living in a trailer might bring on some added risks in 2012. So far the report is not causing any panic in the property and casualty insurers:

Allstate Corporation (NYSE: ALL) is flat at $31.39 against a 52-week trading range of $22.27 to $34.40. Berkshire Hathaway Inc. (NYSE: BRK.B) is even up modestly and it has exposure on insurance and on reinsurance. Progressive Corporation (NYSE: PGR) is also up 0.4% at $21.52.

Maybe the obvious answer is that ‘above average’ means that insurers will get to charge more than normal as well.

Filed under: 24/7 Wall St. Wire Tagged: ALL, BRK-B, PGR

11 Major Earnings Previews For Wednesday (AET, ALL, AOL, BMC, CMO, CMG, GMCR, JDSU, LVS, NDAQ, QCOM)

Administrator — Tue, 31 Jan 2012 17:45:34 +0000

Earnings season is still going strong and Wednesday will have many big earnings reports to watch. These are not the only earnings reports coming from big companies, but these are the ones we will be watching closely: Aetna Inc. (NYSE: AET); The Allstate Corporation (NYSE: ALL); AOL Inc. (NYSE: AOL); BMC Software Inc. (NASDAQ: BMC); Capstead Mortgage Corp. (NYSE: CMO); Chipotle Mexican Grill Inc. (NYSE: CMG); Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR); JDS Uniphase Corporation (NASDAQ: JDSU); Las Vegas Sands Corporation (NYSE: LVS); NASDAQ OMX Group Inc. (NASDAQ: NDAQ); and QUALCOMM Inc. (NASDAQ: QCOM).

We have provided estimates from Thomson Reuters on each and offered commentary and guidance on some of these companies. More detailed previews will be available Tuesday morning for the reports due after the closing bell:

Aetna Inc. (NYSE: AET) estimates are $0.98 EPS and $8.49 billion. Watch the medical loss ratio here as it seems to be in quarters past that insurance outfits have been making more money than they were supposed to be making once the new healthcare laws go into effect. With shares around $44, the year high is $46.01.

The Allstate Corporation (NYSE: ALL) will prove if it has everyone in good hands or not. Thomson Reuters has estimates of $0.97 EPS. With shares around $29, its 52-week range is $22.27 to $34.40.

AOL Inc. (NYSE: AOL) has now seen shares bounce 60% off of the bottom and that is despite the recent news that Facebook is taking much of the new advertising market share. Estimates are $0.16 EPS per Thomson Reuters data but we just saw $0.28 noted in a Dow Jones preview yesterday. That being said, we are staying out of this one.

BMC Software Inc. (NASDAQ: BMC) is expected to post $0.82 EPS on almost $556 million in sales.

Capstead Mortgage Corp. (NYSE: CMO) is not a market moving stock, but investors who are into the world of high-yielding mortgage REITs will be watching. The estimate is $0.41 EPS (actually FFO) and the next dividend will be likely dependent upon that report. Its dividend yield screens north of 13% today.

Chipotle Mexican Grill Inc. (NYSE: CMG) is a cult stock if there every was one and now its valuation is close to $11.5 billion and the stock is within 2% of its all-time high. Thomson Reuters has a consensus of $1.83 EPS and $591.1 million in sales. For 2012, the estimates are $8.68 EPS and 2.7 billion in revenues.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is another huge cult stock down on its luck from recent highs. The stock is still down by more than half. Thomson Reuters has estimate at $0.36 EPS and $1.06 billion in sales.

JDS Uniphase Corporation (NASDAQ: JDSU) still has a huge shareholder base that got buried in the first big tech bubble. At $12.75, the 52-week range is $8.59 to $29.12. Thomson Reuters has a consensus of $0.10 EPS and $390.9 million.

Las Vegas Sands Corporation (NYSE: LVS) is also within striking distance of a near-term high as shares are currently around $49.00 against a 52-week range of $36.05 to $50.68. The consensus estimates from Thomson Reuters are $0.57 EPS and $2.46 billion in sales.

NASDAQ OMX Group Inc. (NASDAQ: NDAQ) is a value stock when it comes to the exchanges and it is not supposedly trying to do any crazy merger right now. At $25.00 the 52-week range is $20.32 to $29.71. The consensus estimate is $0.62 EPS and $417.8 million.

QUALCOMM Inc. (NASDAQ: QCOM)is within striking distance of its yearly high as shares are around $58.80 and the 52-week range is $45.98 to $59.84. Thomson Reuters has estimates of $0.90 EPS on $4.57 billion in revenues. Next quarter estimates are $0.89 EPS and $4.49 billion in sales. Keep in mind that if it rallies much more than the current $98.8 billion market cap will be $100 billion.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Calendar, Earnings Tagged: AET, ALL, AOL, BMC, CMG, CMO, GMCR, JDSU, LVS, NDAQ, QCOM

24/7 Wall St. Closing Bell (BBY, SD, ALL, JCP, KIM, AEP, CVX, D, F, HON, PG, SOA, CPHD, INFI, NRGY, RVBD)

Paul Ausick — Fri, 27 Jan 2012 21:07:13 +0000

All three major US indexes opened lower this morning following the report that US GDP grew by 2.8% in the fourth quarter. A rise of 3% was expected. Combined with the lack of a solution the Greek debt swap and lackluster earnings from several major US companies, the DJIA has remained down all day though the Nasdaq Composite and the S&P 500 have turned positive (barely). There’s still about half an hour to go before the close, so there’s still some hope that all the indexes will finish the week on an uptick, no matter how small. WTI crude oil is down -0.13% at $99.57/barrel and Brent crude is up 0.55% at $111.40/barrel. Gold is higher by 0.50% at $1,738.50.

The unofficial closing bells put the DJIA down about 74 points to 12,660.61 (-0.58%), the NASDAQ rose more than 11 points (0.40%) to 2,816.55, and the S&P 500 fell -0.16% or about 2 points to 1,316.33.

There were several analyst upgrades and downgrades today, including Best Buy Co. Inc. (NYSE: BBY) started as ‘outperform’ with a $32 target price at Credit Suisse; Sandridge Energy Inc. (NYSE: SD) started as ‘buy’ at Canaccord Genuity; The Allstate Corp. (NYSE: ALL) started as ‘outperform’ at William Blair; J.C. Penney Co. Inc. (NYSE: JCP) raised to ‘overweight’ at Piper Jaffray and maintained as ‘buy’ with target price raised to $49 at Argus; and Kimco Realty Crop. (NYSE: KIM) cut to ‘neutral’ at Citigroup.

Earnings reports since markets closed on last night have led to some price changes as of the last half hour of trading today: American Electric Power Co. Inc. (NYSE: AEP) is down -2.62% at $40.20; Chevron Corp. (NYSE: CVX) is down -2.10% at $104.35; Dominion Resources Inc. (NYSE: D) is down -1.91% at $49.88; Ford Motor Co. (NYSE: F) is down -3.69% at $12.27; Honeywell International Inc. (NYSE: HON) is up 1.31% at $58.59; and Proctor & Gamble Co. (NYSE: PG) is down -0.51% at $64.47.

Other standouts from today include the following stocks:

Solutia Inc. (NYSE: SOA) is up more than 40% at $27.35, after posting a new 52-week high of $27.85 earlier today. The specialty chemicals company has agreed to be acquired by Eastman Chemical Co. (NYSE: EMN) for $3.4 billion in cash and stock.

Cepheid (NASDAQ: CPHD) is up more than 25% at $42.98 after posting new 52-week high of $43.03 earlier today. The medical diagnostics equipment maker has boosted its sales outlook and is enjoying a halo effect from the hostile takeover bid for Illumina Inc. (NASDAQ: ILMN).

Infinity Pharmaceuticals Inc. (NASDAQ: INFI) is down -40% at $5.97. The drug maker has cancelled further trials of a pancreatic cancer drug that does not perform better than placebo.

Inergy L.P. (NYSE: NRGY) is down nearly -24% at $17.31 after posting a new 52-week low of $17.23 earlier today. The natural gas distribution company is cutting payouts to its unitholders.

Riverbed Technology Inc. (NASDAQ: RVBD) is down nearly -19% at $24.38. The networking technology company warned this morning that first-quarter sales growth would not meet previous expectations.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Personal income and outlays
11:30 a.m. – 3- and 6-month Treasury bill auctions

Have a great weekend.

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close, The Day Tagged: AEP, ALL, BBY, CPHD, CVX, D, F, HON, INFI, JCP, KIM, NRGY, PG, RVBD, SD, SOA

Top Analyst Upgrades & Downgrades (ALL, T, BBY, CELG, CLF, EQY, HIG, JCP, JNPR, KIM, PGR, SD, SYNA, UA, VPRT, ZOLL)

Administrator — Fri, 27 Jan 2012 13:27:24 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Friday morning.

The Allstate Corporation (NYSE: ALL) Started as Outperform at William Blair.
AT&T Inc. (NYSE: T) Reinstated as Neutral with $30 price target at Credit Suisse.
Best Buy Co., Inc. (NYSE: BBY) Started as Outperform with $32 target at Credit Suisse.
Celgene Corporation (NASDAQ: CELG) Cut to Hold on Valuation at Argus.
Cliffs Natural Resources (NYSE: CLF) Cut to Neutral at Credit Suisse.
Equity One Inc. (NYSE: EQY) Cut to Sell at Citigroup.
Hartford Financial Services Group (NYSE: HIG) Cut to Neutral at JPMorgan.
J.C. Penney Company, Inc. (NYSE: JCP) Raised to Overweight at Piper Jaffray; Maintained as Buy but raised price target to $49 at Argus.
Juniper Networks Inc. (NYSE: JNPR) Cut to Market Perform at Morgan Keegan.
Kimco Realty Corporation (NYSE: KIM) Cut to Neutral at Citigroup.
The Progressive Corporation (NYSE: PGR) Started as Underperform at William Blair.
Sandridge Energy Inc. (NYSE: SD) Started as Buy at Citigroup.
Synaptics Inc. (NASDAQ: SYNA) Raised to Buy at Needham; Cut to Neutral at Stern Agee.
Under Armour, Inc. (NYSE: UA) Reiterated as Buy with $102 price target at Canaccord Genuity.
Vistaprint NV (NASDAQ: VPRT) Cut to Underperform as Bear of the Day at Zacks.
ZOLL Medical Corporation (NASDAQ: ZOLL) maintained Outperform as Bull of the Day at Zacks.

If you enjoyed the top analyst calls, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We include major analyst upgrades and downgrades, IPO and M&A news, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ALL, BBY, CELG, CLF, EQY, HIG, JCP, JNPR, KIM, PGR, SD, SYNA, T, UA, VPRT, ZOLL

Top Analyst Upgrades & Downgrades (ALL, AMZN, BX, CTL, CB, DRI, FSL, GEOI, GOOG, JDSU, LNKD, BTU, PEG, DGX, TLB, TRV, UIS, UNH, URBN, WSH)

Administrator — Wed, 07 Dec 2011 13:25:40 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Wednesday morning.

Allstate Corporation (NYSE: ALL) Started as Outperform at Credit Suisse.
Amazon.com Inc. (NASDAQ: AMZN) Started as Hold with $225.00 price target “due to low margins through 2012″ at Canaccord Genuity.
The Blackstone Group LP (NYSE: BX) Raised to Buy with $20.00 price target at Argus.
CenturyLink, Inc. (NYSE: CTL) named as value stock of the day at Zacks.
Chubb Corporation (NYSE: CB) Started as Outperform at Credit Suisse.
Darden Restaurants Inc. (NYSE: DRI) Cut to Hold from Buy at Argus.
Freescale Semiconductor Inc. (NYSE: FSL) Reinstated as Outperform at Credit Suisse.
GeoResources, Inc. (NASDAQ: GEOI) Started as Buy with $43 price target “on a concentrated Eagle Ford/Bakken exposure” by Canaccord Genuity.
Google Inc. (NASDAQ: GOOG) was initiated with a ‘Buy’ rating and $725.00 price target “on robust growth and great value” by Canaccord Genuity.
JDS Uniphase Corporation (NASDAQ: JDSU) Started in new coverage as Buy with a $14.75 price target at Jefferies.
LinkedIn Corporation (NYSE: LNKD) Started as Buy with $85 price target as “growth trumps valuation” by Canaccord Genuity.
Peabody Energy Corporation (NYSE: BTU) Downgraded to Neutral from Buy with $43 price target by Goldman Sachs.
Public Service Enterprise Group Inc. (NYSE: PEG) Downgraded to Neutral from Buy with $33 price target at Goldman Sachs.
Quest Diagnostics Inc. (NYSE: DGX) Started as Hold with $51 target at Auriga.
The Talbots, Inc. (NYSE: TLB) maintained Neutral with $3.00 fair value by Janney Capital Markets.
Travelers Cos. Inc. (NYSE: TRV) Started as Outperform at Credit Suisse.
Unisys Corporation (NYSE: UIS) Raised to Outperform as Bull of the Day at Zacks.
UnitedHealth Group Inc. (NYSE: UNH) added to the US Focus List at Credit Suisse.
Urban Outfitters, Inc. (NASDAQ: URBN) Maintained Neutral with $23.00 price target at Janney Capital Markets.
Willis Group Holdings, PLC (NYSE: WSH) named Bear of the Day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: ALL, AMZN, BTU, BX, CB, CTL, DGX, DRI, FSL, GEOI, GOOG, JDSU, LNKD, PEG, TLB, TRV, UIS, UNH, URBN, WSH

November Share Buybacks Already Nearing $30 Billion (ALL, AIG, CBS, FIS, PFE, RAI, SBUX, SYY, TMO, VIA, VRX, PKW)

Administrator — Wed, 16 Nov 2011 15:57:30 +0000

Some companies just want to keep bringing on new share buybacks whether they work or not. Some are to stop dilution from acquisitions or employee stock options, while others are to reduce the float and to boost earnings per share. Many investors (and companies) consider buybacks an alternative (or replacement) to dividends.

We have tracked only the large buyback announcements made this month in the following companies: The Allstate Corporation (NYSE: ALL); American International Group, Inc. (NYSE: AIG); CBS Corporation (NYSE: CBS); Fidelity National Information Services, Inc. (NYSE: FIS); Pfizer Inc. (NYSE: PFE); Reynolds American Inc. (NYSE: RAI); Starbucks Corporation (NASDAQ: SBUX); Sysco Corporation (NYSE: SYY); Thermo Fisher Scientific, Inc. (NYSE: TMO); Viacom, Inc. (NYSE: VIA-B); and Valeant Pharmaceuticals International, Inc. (NYSE: VRX).

As far as how share buybacks in general matter for stocks, you can always play the buyback leaders via the PowerShares Buyback Achievers (NYSE: PKW), and it is almost exactly in the middle of its 52-week trading range. Those buybacks outlined below do not include the many $150 million, $100 million, and lower buybacks. The tally all said and done here so far in just the first half of November of 2011: over $27 billion!!!

The Allstate Corporation (NYSE: ALL) is trying to tell shareholders they are in good hands because the announcement over the next 18 months is that it would repurchase up to $1 billion in common stock. The market cap today is just over $13 billion.

How can American International Group, Inc. (NYSE: AIG) have a share buyback program? It announced in early November that it would buy back up to $1 billion in stock. The $43 billion in market cap is one thing, but the amount of shares still owned by Uncle Sam (or taxpayers) is huge. Actually, maybe this supports the stock value for us all!

CBS Corporation (NYSE: CBS) added to its prior plan and has authorized the repurchase of up to $1.5 billion in stock. The current market cap is $16.5 billion, so we’ll leave it up to you to decide if this buyout matters or not.

Fidelity National Information Services, Inc. (NYSE: FIS) announced on November 1 that it was approving for up to $500 million in share buybacks over the next two years. This compares to $7.4 billion in market capitalization.

Pfizer Inc. (NYSE: PFE) recently expanded its buyback program and it is now authorized to repurchase up to $7 billion worth of common stock. This is a huge amount but it sounds small when you consider a $151 billion market cap.

Reynolds American Inc. (NYSE: RAI) this week announced a $2.5 billion share buyback plan which is good for the next two and a half years. This is more than 10% of the company’s stock as the market cap is $23 billion. Institutions own 46% of Reynolds.

Starbucks Corporation (NASDAQ: SBUX) recently added to its prior buyback plan with up to 20 million shares. This is more than $850 million at current prices, which compares to a market cap of $32.5 billion.

Sysco Corporation (NYSE: SYY) recently boosted its dividend but it also announced that it would repurchase up to 20 million shares of common stock. This represents about $550 million today and its market cap is just over $16 billion.

Thermo Fisher Scientific, Inc. (NYSE: TMO) recently added $750 million to its prior buyback plan and its market capitalization is $18.5 billion. The company had only $25 million remaining under a prior buyback and the new buyback is over the course of a year because it expires on November 9, 2012.

Viacom, Inc. (NYSE: VIA-B) must want to try to take itself private. The market cap is just under $25 billion, but the company recently announced with its positive earnings report that it is expanding its buyback to $10 billion. While this was an expansion of a prior plan, $10 billion is a massive sum.

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) is a bit odd. While it announced that it would spend up to $1.5 billion repurchasing securities, this was listed as a buyback of stock and/or debt. Its market cap is $13.25 billion today.

Company	$ (Millions)
Allstate	$1,000
AIG	$1,000
CBS	$1,500
FNIS	$500
Pfizer	$7,000
Reynolds	$2,500
Starbucks	$850
Sysco	$550
Thermo Fisher	$750
Viacom	$10,000
Valeant	$1,500
November’s Tally	$27,150

JON C. OGG

Filed under: Activist Investor, Compensation, Corporate Governance, Dividend, Economy, Editor's Picks, Insider Activity, Large Cap Stocks, Mergers and Buy Outs, Stock Buybacks Tagged: AIG, ALL, CBS, FIS, PFE, PKW, RAI, SBUX, SYY, TMO, VIA, VRX

After Hurricane Irene, Tropical Storm Katia Poses Next Threat (ALL, TRV, CB, ALL, BRK-B, RE, PRE, CRD-B, LOW, HD)

Administrator — Tue, 30 Aug 2011 14:50:06 +0000

The worst part about hurricane season is that one bad hurricane has no impact on whether or not another hurricane, or series of hurricanes, can be coming back down the pipe. If you track the NOAA satellite images daily, you might have noticed a large cloud formation coming off the west coast of Africa even before Hurricane Irene hit the Eastern Seaboard in recent days. That large cloud formation has evolved and it is now Tropical Storm Katia.

Our intent is not to overhype the news like much of the media appears to have done. Still, it is hard to not notice that this storm system has already developed into a formally named system while it is still located closer to Africa than it is to the Caribbean. The media will probably play this one up on the “K” angle as it was Katrina that was such a hard lesson for the U.S. before. Insurers will undoubtedly be watching this system in the days ahead regardless of which letter of the alphabet it has. What makes this system unique is that the current trajectory is actually heading to what could be some of the same storm-damaged areas as Irene. That would not be a welcoming event and we would only hope that the trajectory changes to send this up north to just dissipate in the colder waters of the North Atlantic.

Allstate Corporation (NYSE: ALL) and The Travelers Companies, Inc. (NYSE: TRV) have exposure in the areas around North Carolina as well as exposure further up the coast. The Chubb Corporation (NYSE: CB) has exposure in New York and on north throughout southern New England. Hartford Financial Services Group Inc. (NYSE: HIG) was on CNBC this week almost talking down some of the damages from the storm, which is a relief to everyone.

Berkshire Hathaway Inc. (NYSE: BRK-B) has insurance and/or reinsurance exposure, and Everest Re Group Ltd. (NYSE: RE) and PartnerRe Ltd. (NYSE: PRE) were also up on Monday after the damages were lower than the reinsurance threshold even while they are all set to raise rates.

The wild card in hurricane season is a small company called Crawford & Company (NYSE: CRD-B). This outfit provides claims management solutions to insurance companies and self-insured entities. Think of Crawford, well its associates, as army of individuals as insurance claims adjusters.

Lowe’s Companies Inc. (NYSE: LOW) and The Home Depot, Inc. (NYSE: HD) have slid after a poor confidence number, but they are obvious potential beneficiaries if any real hurricane damage comes.

A new update will be made around 11:00 AM or 2:00 PM EST, but as of now the National Hurricane Center issued advisories on the newly named storm. This one is still quite a ways out at 535 miles from the Cape Verde islands. Current maximum sustained winds are 35 knots (40 MPH) and it is moving West-Northwest at 15 knots (17 MPH). If the storm does not peter-out and continues at the same pace, this looks like it would be an issue for the Eastern Seaboard again the weekend after Labor Day.

Again, this is a storm which could change its path or it could just fizzle out all on its own. We certainly hope it does that or even that it drifts north and just fizzles out in the colder North Atlantic. We’ll be keeping an eye on Katia in the days ahead.

JON C. OGG

Here is the current NOAA image with a projected path (updated link path here):

Filed under: Economy, Editor's Picks, Financial Stocks, Housing, Infrastructure Tagged: ALL, BRK-B, CB, CRD-B, HD, LOW, PRE, RE, TRV