Posts for Ticker ‘DOW’

The More Focused, and More Opaque, Buffett & Berkshire Hathaway (BRK-A, BRK-B, BNI, UNP, NSC, GS, GE, TIF, HOG, WMT, COP, XOM, WFC, RSG, DOW, ETN, WBC, MCO, WLP, UNH, GSK, SNY, GCI, WPO)

This was an important week for investment guru and billionaire watchers to see which gurus were holding which stocks.  The full public equity holdings of Warren Buffett via Berkshire Hathaway Inc. (NYSE: BRK-A) were particularly of note, particularly with those B shares under “BRK-B” soon to split and giving a chance for even the less astute ranks of Joe Public to own a piece of the Berkshire dream.  Obviously the huge change is via the Burlington Northern Santa Fe Corp. (NYSE: BNI) buyout.  As part of this deal, Buffett is exiting Union Pacific (NYSE: UNP) and exiting Norfolk Southern (NYSE: NSC) stakes of about $600 million and $100 million, respectively, to avoid duplication and internal competition.  The rail transport play now accounts for about one-quarter of the total Berkshire Hathaway entity upon closing. But the less obvious position in that Warren Buffett in 2009 has made it clear that there will be a simpler and probably less “stock-hound” version of Berkshire Hathaway ahead.

Buffett has gone higher up the food chain and is likely to be a creditor now inside or to large institutions.  We have seen this during the crisis.  Buffett negotiated a better deal for Goldman Sachs Group (NYSE: GS) than the US Government was able to get.  Buffett’s preferred stock in Goldman Sachs has a dividend of 10% and is callable at any time at a 10% premium; but Buffett also got warrants to purchase $5 billion of common stock with a strike price of $115.00 per share, exercisable for a five-year term (4 years now), and Buffett would effectively get to pocket $61 per share if he exercised those all today at the market (and with a $2.6 billion warrant profit alone).

The General Electric Co. (NYSE: GE) stake was listed only as 7.77 million shares of common stock (about $125 million now), the same as it has been for quarters.  Yet last year Buffett came to the rescue with a $3 billion of perpetual preferred stock in a private offering with a dividend of 10% and warrants to purchase $3 billion of common stock.  The preferred is callable after 3-years (2 years now) at a 10% premium; the warrants have a strike price of $22.25 and are exercisable for a five-year term (4 years now).
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Posted on: November 19, 2009 – 8:59 am in Activist Investor, Bonds, Buffett, Conglomerates, Dividend, Editor's Picks, Infrastructure, Large Cap Stocks, Mergers and Buy Outs, Oil & Gas, Private Equity, Transports, Value Investing, , , , , , , , , , , , , , , , , , , , , , , ,

The Twenty Companies That Wall St. Can Trust The Least

Wall St. likes financial statements that give it deep insights into a company’s operations, especially its liabilities. It likes boards that make sure shareholders get as complete a picture as possible of a firm’s balance sheet and details of its P&L, cash-flow, and other critical financial measurements.

bear24/7 Wall St. asked Audit Integrity to put together a list of companies traded on US exchanges with market caps of more than $3 billion that do particularly poorly in the areas  of corporate governance, detailed disclosure of high-risk events including M&A and restructurings, revenue and expense recognition, and asset and liability valuation.

Based on the Audit Integrity model, 24/7 created a list of the twenty companies that Wall St. can trust the least.  Among the companies that the analysis flagged are Altria (NYSE:MO), Chevron (NYSE:CVX), Credit Suisse (NYSE:CS), GE (NYSE:GE), Blackstone (NYSE:BX), Wal-Mart (NYSE:WMT),  Wells Fargo (NYSE:WMT), and Dow Chemical (NYSE:DOW)

The list:

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Posted on: October 27, 2009 – 5:31 am in Corporate Governance, Research, Uncategorized, , , , , , , , , , , , , , , , , , ,

The Solar Shingle And The False Promise Of New Technology

biotechMicrosoft’s (NASDAQ:MSFT) Windows 7 will be better than Microsoft Vista. The world’s largest software company has learned from the mistakes it made with Vista which users found too complicated. But, Microsoft assumes that customers always want to upgrade to the latest version of its operating system. That does leave out the millions of people who never licensed Vista; people who like XP, the version of the operating system used by most consumers and businesses on their PCs before Vista arrived. Read More »

Posted on: October 6, 2009 – 4:46 am in Alternative Energy, Green Biz, , ,

Media Digest 7/2/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   California declared a financial emergency.

Reuters:   An SEC attorney raised concern about a Madoff report in 2004.

Reuters:   Auto parts supplier Lear filed for bankruptcy.

Reuters:   NYC apartment sales are down more than 50%.

Reuters:   Beijing Automotive will bid for Opel.

Reuters:   GM told a judge asset sales was its only option. Read More »

Posted on: July 2, 2009 – 3:04 am in Autos, Banking, China, Compensation, Economy, Emerging Markets, FDA, Internet, Metals, Oil & Gas, Press Digest, , , , , , , , , , , , , , , , ,

Kuwait, Sinopec Building New Refinery in China (SNP, RDS-A, DOW)

Refinery ImageThe Kuwaiti state oil company, Kuwait Petroleum Corporation, and China Petroleum and Chemical Company, known as Sinopec, (NYSE: SNP) are well along on plans to build a new 300,000 barrel per day refinery in Guangdong province. The total cost of the project is estimated at $8-$9 billion.

Kuwait Petroleum will own 30% of the project, Sinopec will own 50%, and Royal Dutch Shell plc (NYSE:RDS-A) and Dow Chemical Company (NYSE:DOW) will each own 10%.

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Posted on: May 28, 2009 – 9:39 am in China, Oil & Gas, , ,

Poor Bets in Oil & Derivatives, Rethinking the Buffett Game (BRK-A, BRK-B, COP, WFC, DOW)

Buffett ImageBerkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) may have had the wind behind its back from its annual shareholder meeting, but that wind now may be  breaking wind.  This was Warren Buffett’s quarterly loss since 2001.  On a net loss basis, Berkshire Hathaway lost roughly $1.5 billion.  While some charges and operations were lower, it was the big oil investment in ConocoPhillips (NYSE: COP) which Buffett went on and on about.  The huge gains seen in Wells Fargo & Co. (NYSE: WFC) and other financial stocks were hardly a footnote throughout the earnings.
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Posted on: May 9, 2009 – 10:14 am in Banking, Buffett, Conglomerates, Earnings, Financial Stocks, , , , ,

Dow Shoring Up Capital (DOW)

money-stack-image4The Dow Chemical Company (NYSE: DOW) has commenced a public offering of common stock to shore up its balance sheet after closing its recent huge merger (acquisition) with Rohm & Haas.   It will raise approximately $1.625 billion in the sale.  Roughly $1 billion of the proceeds will be through shares offered by the company itself and roughly $625 million will be through shares offered by accounts and funds managed by Paulson & Co. and trusts created by members of the Haas Family.  This might not be the only offering to raise capital.
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Posted on: May 5, 2009 – 3:42 pm in Bonds, Mergers and Buy Outs, Secondary Offering,

Five Company’s Earnings Could End The Rally (WMT)(TGT)(MSFT)(GOOG)(DOW)(C)

bear7The assumption is that the earnings for the first quarter from most companies in the S&P 500 will be atrocious. That can be set side-by-side with the fact that the market now appears to be looking for news that is bad, but not as bad as expected. Currently stocks are being driven higher by the sentiment that “troubling, but not disastrous” is good.

Earnings from five companies are likely to set the tone for the market’s direction over the next two months. That is based on their size within the sectors that they represent, or when they report in the earnings cycle. Read More »

Posted on: April 6, 2009 – 5:09 am in Earnings, Earnings Warning, , , , , ,

Media Digest 4/6/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper3According to Reuters, HSBC (HBC) has a successful rights offering to raise $18.9 billion.

Reuters reports that a deal for IBM (IBM) to by Sun (JAVA) is near collapse.

Reuters writes that Geithner denies that the Administration CEO pay limits. Read More »

Posted on: April 6, 2009 – 2:54 am in Press Digest, , , , , , , , , , , , , ,

The “Green” Hypocrisy: America’s Corporate Environment Champions Pollute The World

oil1 “Green is green as in the color of money”
- Brand director of General Electric, Brandweek, July 26, 2006

“Greenwashing” is the act of misleading the public regarding the environmental practices of a company or the environmental benefits of a product, service, or business line.  Due to the public’s increased awareness of environmental issues, including global warming, deforestation, and the loss of endangered species, greenwashing has become a staple of corporations marketing efforts.  All of the companies in this article have made some effort to address these concerns.  Some of them appear to be trying harder than others, and even a few of them have made legitimate efforts to become responsible corporate stewards of the environment.  Evidenced by the support of environmental groups and corporate responsibility professionals, many of these companies’ green initiatives have made a positive impact. Read More »

Posted on: April 2, 2009 – 2:56 am in Green Biz, , , , , , , , , ,

Denbury Resources Hits the Big Time (DNR, ROH, DOW)

money-stack-image56Oil and gas E&P company Denbury Resources Inc. (NYSE:DNR) will be added to the S&P 500 after trading closes on April 1st. Denbury replaces Rohm and Haas Co. (NYSE:ROH), which Standard & Poor’s expects to be purchased by Dow Chemical Corp. (NYSE:DOW).
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Posted on: March 26, 2009 – 7:48 am in Index, Oil & Gas, , ,

A Renaissance for Big Acquisitions

bank23A large part of the money that was made by banks and investment banks from 2004 through most of 2007 was made from mergers and acquisitions. When the credit markets fell apart, the financing for these deals disappeared. Then the economy got so bad that buying companies became secondary to staying in business through the downturn Read More »

Posted on: March 19, 2009 – 3:59 am in Mergers and Buy Outs, , , , , , , , , , , ,

Media Digest 3/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper8According to the head of the FDIC, a “bad bank” system could jumpstart the US economy.

Reuters reports that some economists believe that the US economy will start to rebound in the second half of the year.

Reuters says that the Dow Chemical (DOW) merger with Rohm and Haas (ROH) will now go through.

Reuters reports that Eli Broad who invested in AIG (AIG) has given up hope that the company will recover.

Reuters reports that the US is weighing future aid for Citigroup, if needed. Read More »

Posted on: March 10, 2009 – 2:58 am in Press Digest, , , , , , , , , , , , , ,

Rohm & Haas and Dow Deal Back At $78? (ROH, DOW)

money-stack-image17The Rohm & Haas (NYSE: ROH) acquisition by Dow Chemical (NYSE: DOW) is actually going to close if CNBC’s David Faber is accurate.  Faber just reported some merger news that may seem out of place for the economy today.  More importantly, he said that the $78.00 per share cash buyout is going to stand for the common holders of Rohm & Haas.
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Posted on: March 9, 2009 – 1:38 pm in Mergers and Buy Outs, ,

Media Digest 3/9/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper5According to Reuters, Japanese gloom deepened and the government encouraged more coordination with the US.

Reuters reports that AIG (AIG) got billions of dollars from the government that it paid out to other firms.

Reuters reports that Exxon (XOM) will try to take a big role in Iraq’s oil sector.

Reuters says that Lloyd will meet with investors on its plan to have the UK government take a majority stake in the company Read More »

Posted on: March 9, 2009 – 2:51 am in Press Digest, , , , , , , , , , ,

The 52-Week Low Club (DOW)(IP)(CBS)(SCHW)(EBAY)(MSFT)(PFE)(GE)(C)

sad_clownCitigroup (C) Still fears of nationalization or a larger bailout. Falls to $1.15. from a 52-week high of $27.35.

GE (GE) Market not comforted that GE’s financial services are is not in trouble. Drops to $7.51 from 52-week high of $38.52.

Pfizer (PFE) Concerns about economic activity spreading to healthcare costs. Down to $11.65 from 52-week high of $22.67.

Microsoft (MSFT) New study shows PC sales will collapse this year. Drops to $15.79 from 52-week high of $32.10.

Ebay (EBAY) E-commerce likely next victim of retail contraction. Off to $10.28 from 52-week high of $33.47.

Schwab (SCHW) No one trading stocks, at least not at a profit. Dips to $11.94 from 52-week high of $26.20.

CBS (CBS) Advertising revenue drying up. Down to $3.85 from 52-week high of $25.

International Paper (IP) Cuts dividend. Plunges to $5.05 from 52-week high of $32.75.

Dow Chemical (DOW) Commodities prices and demand crippled. Sells down to $6.90 from 52-week high of $43.43.

Douglas A. McIntyre

Posted on: March 2, 2009 – 4:00 pm in HI/LOW, , , , , , , , ,

Odd Merger: Middle East & Chemicals, Redux (NCX, ROH, DOW)

Nova Chemicals Corp. (NYSE: NCX) is the largest percentage winner on the NYSE today.  It is up about 300%.  Yep 300…  The company is being acquired in a deal involving the Middle East.  Does this sound familiar?
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Posted on: February 23, 2009 – 10:22 am in Emerging Markets, Mergers and Buy Outs, Private Equity, , ,

Disappearing Dividends At America’s Best-Known Companies (DOW, HOG, MAS)

In this horrible market, dividends have been one of the few saviors for investors. But the latest trend of big-name companies slashing their dividend is concerning. Sadly, this trend will likely grow.

Today it was Dow Chemical (NYSE: DOW), Harley-Davidson, Inc. (NYSE: HOG) and Masco (NYSE: MAS) cutting their dividends. The cuts were likely much anticipated by the market, with dividend yields of 16%, 10% and 12% before the cuts. What is concerning though is that some of these companies were out defending their dividends not too long ago.

Read more…

Posted on: February 13, 2009 – 9:55 am in Uncategorized, , ,

Media Digest 2/13/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaper5According to Reuters, Obama is working on a program to help some homeowners pay their mortgages.

Reuters reports that Wall St’s appetite to slim down perks will begin to face tests.

Reuters reports that a reports shows that troubled US banks more require more capital than is widely believed. Read More »

Posted on: February 13, 2009 – 3:54 am in Press Digest, , , , , , , , ,

Dow Chemical Dividend Lesson For GE (DOW, GE, MMM)

How Far Could $5 Billion Go?

How Far Could $5 Billion Go?

Dow Chemical Co. (NYSE: DOW) probably would have had a much better day if the market did not plunge at the end of the day.  In university finance classes they teach you that cutting dividends is a bad move, but that isn’t the case when the yield has gone parabolic and when companies have to go into preservation mode.  This is something that we suspect General Electric Co. (NYSE: GE) will follow soon.
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Posted on: February 12, 2009 – 4:40 pm in Dividend, , , , , , , ,