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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

Top Day Trader Alerts (BP, CTIC, C, CLF, FIS, JASO, SNWL)

Administrator — Tue, 06 Jul 2010 13:06:25 +0000

There are many stocks on the move this morning for day traders and active traders. BP plc (NYSE: BP), Cell Therapeutics, Inc. (NASDAQ: CTIC), Citigroup, Inc. (NYSE: C), Cliffs Natural Resources Inc. (NYSE: CLF), Fidelity National Information Services Inc. (NYSE: FIS), JA Solar Holdings Co., Ltd. (NASDAQ: JASO) and SonicWALL, Inc. (NASDAQ: SNWL) are all on the move. We have included the move and the news and added color on each if applicable.

BP plc (NYSE: BP) is rallying on an analyst upgrade at RBS and after it denied that it was looking for a white knight investor to take a large stake to help it raise capital. Shares are up 6% and they are not just back over the old $30.00 hurdle. That 6% gain in ADRs is up to $31.11.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is trading up after the company advanced its Pixantrone filing process in the E.U. with an expanded pediatric investigation plan. Shares were up about 9% in earlier indications, and shares are up about 7% at $0.41 on fairly light volume.

Citigroup, Inc. (NYSE: C) may actually be the biggest winner in the JPMorgan upgrade of Goldman Sachs due only to its low share price and its trading volume. Shares are up 1.6% at $3.85, but at almost 4 million shares it is one of the most actives.

Cliffs Natural Resources Inc. (NYSE: CLF) is trading higher on the report that Spider Resources has broken off its agreement to merge with KWG Resources. The firm said that it accepted Cliffs’ offer to take over the company. All three of these outfits are partners in a chromite project in Northern Ontario. Shares are up almost 3.5% at $48.49.

Fidelity National Information Services Inc. (NYSE: FIS) is up after it launched its planned $2.5 billion stock repurchase program and unveiled a $1.2 billion note sale to help fund it. Shares are up just over 4% at $27.50.

JA Solar Holdings Co., Ltd. (NASDAQ: JASO) is up almost 4% at $5.27 after it announced a multi-year supply pact with MEMC which starts in Q3 and goes through 2012.

SonicWALL, Inc. (NASDAQ: SNWL) is down and one of the more active NASDAQ issues in pre-market trading: it said an unsolicited third-party has advised that it no longer intends to pursue the buyout of SonicWALL; its Board continues to recommend that SNWL shareholders vote for the merger with affiliates of Thoma Bravo and Ontario Teachers’ Pension Plan at the special meeting for holders on July 23. Shares closed at $11.78 Friday and the stock is down about 3.25% at $11.40 on over 350,000 shares.

JON C. OGG

Filed under: Pre-Market Activity, Trading Alert Tagged: BP, C, CLF, CTIC, FIS, JASO, SNWL

Media Digest 5/7/2010

247wallst — Fri, 07 May 2010 07:54:32 +0000

Reuters: Stocks fell in Asia and Europe as the pound and euro fell.

Reuters: The GOP’s attempt to kill a consumer watchdog program was not successful.

Reuters: The Goldman Sachs Group (NYSE: GS) is in settlement talks with the SEC.

Reuters: Nasdaq named stocks on which it will cancel trades.

Reuters: American International Group (NYSE: AIG) fired The Goldman Sachs Group as its main adviser.

Reuters: Oil is down $10 in the last week.

Reuters: Oil lobbying money is unlikely to help BP plc (NYSE: BP)

Reuters: Advanced Micro Devices (NYSE: AMD) chips will be in a growing number of computers this summer.

Reuters: Blackstone, THL, and TPG will try to buy Fidelity National Information Service Inc (NYSE: FIS)

WSJ: The Minerals and Management Service was lax in regulating the oil industry.

WSJ: A number of high frequency trading firms stopped activity as the market plunged.

WSJ: Goldman Sachs and the SEC are in settlement talks.

WSJ: The plan to audit the Fed was killed in the Senate.

WSJ: The Greek parliament approved a bailout.

WSJ: Simon Property Group Inc upped its bid for General Growth Properties Inc.

WSJ: The Fed will sell some of its $1.1 trillion in mortgage holdings.

WSJ: The Public Company Accounting Oversight Board said that Deloitte had missed some details in audits.

WSJ: MGM posted a huge loss as it wrote down the value of its holdings in the CityCenter resort.

WSJ: Friends of the car industry attacked a bill on auto safety.

WSJ: The VIX hit a 2010 high.

WSJ: A high-speed trading glitch cost investors billions.

WSJ: Loans at high risk made in foreign currencies are exposed by problems in Eastern Europe.

WSJ: China’s use of oil and coal jumped 24% in Q1.

WSJ: AIG dismissed Goldman as its adviser.

FT: The Bank of Japan put huge amounts of money into the system to increase liquidity as market fell.

FT: Immelt of GE joined Berkshire Hathaway (NYSE: BRK.B) in backing Wall St.

Bloomberg: The supply of Apple Inc. (NASDAQ: AAPL) iPads in its stores is falling sharply.

Bloomberg: Calpers voted to split the chairman and CEO jobs at Goldman.

Douglas A. McIntyre

Filed under: Press Digest Tagged: AAPL, AIG, BP, BRK-B, FIS, GE, GS

Top 10 Analyst Upgrades & Downgrades (ABC, BWA, DRYS, FIS, ITW, JPM, MHP, NOK, SOHU, ZUMZ)

247wallst — Fri, 17 Apr 2009 11:48:38 +0000

There are not so many brokerage calls this morning for it being earnings season, but these are the top 10 analyst calls of upgrades and downgrades from Wall Street we have seen early this Friday morning:

AmerisourceBergen (ABC) Raised to Buy at Deutsche Bank.
Borg Warner (BWA) Cut to Market Perform at Wachovia.
DryShips (DRYS) Raised to Outperfom at Oppenheimer.
Fidelity National Information Services (FIS) Raised to Outperfom at Oppenheimer.
Illinois Tool (ITW) Cut to Market Perform at Wachovia.
JPMorgan Chase & Co. (JPM) Cut to In-Line at Foxx-Pitt.
McGraw-Hill (MHP) Raised to Overweight at JPMorgan.
Nokia (NOK) Raised to Neutral at JPMorgan.
Sohu.com (SOHU) Cut to Sell at Deutsche Bank.
Zumiez (ZUMZ) Raised to Buy at KeyBanc.

Jon C. Ogg

Posted in Analyst Calls Tagged: ABC, BWA, DRYS, FIS, ITW, JPM, MHP, NOK, SOHU, ZUMZ

Many Monday Pre-Market Downgrades (CEG, FIS, FISV, DNA, KBW, NKE, PSO, SHW, SWIR, SWK, WERN, WIT)

247wallst — Mon, 21 Jul 2008 07:52:00 +0000

These are among the top analyst Downgrades or negative analyst calls affecting shares this Monday morning in pre-market trading:

Constellation Energy (NYSE: CEG) Downgraded to Underperform at Jefferies.
Fidelity National (NYSE: FIS) Cut to Perform at Oppenheimer.
Fiserv (NASDAQ: FISV) Cut to Perform at Oppenheimer.
Genentech (NYSE: DNA) Raised to Overweight at Lehman.
KBW (NYSE: KBW) Cut to Market Perform at FBR.
Nike (NYSE: NKE) Cut to Neutral at HSBC.
Pearson plc (NYSE: PSO) Cut to Sell at Deutsche Bank.
Satyam Computer Services (NYSE: SAY) Cut to Equal Weight at Morgan Stanley; Cut to Underperform at Credit Suisse.
Sherwin Williams (NYSE: SHW) Cut to Sell at Goldman Sachs.
Sierra Wireless (NASDAQ: SWIR) Target cut to $20 from $25 at CIBC.
Stanley Works (NYSE: SWK) Cut to Hold at Deutsche Bank.
Werner Enterprises (NASDAQ: WERN) Cut to Sell at UBS.
WIPRO (NYSE: WIT) Cut to Underperform at Credit Suisse.

Jon C. Ogg
July 21, 2008

Earlybird Analyst Calls (June 18, 2007)

247wallst — Mon, 18 Jun 2007 06:23:00 +0000

ADP started as Sector Perform at CIBC.
ANDW cut to Neutral at B of A.
ASN cut to Sector Perform at RBC.
CKFR raised to Outperform at CIBC.
CPS cut to Sector Perform at CIBC.
EFD cut to Sell at Citigroup.
ENCY cut to Underperform at Rodman & Renshaw.
FCS raised to Outperform at RWBaird.
FIS started as Outperform at CIBC.
FISV raised to Sector Perform at CIBC.
GME raised to Overweight at JPMorgan.
GPN started as Sector Perform at CIBC.
KDN raised to Buy at KeyBanc/McDonald.
KYPH cut to Market Perform at Wachovia.
NATI raised to Overweight at JPMorgan.
TEK raised to Overweight at JPMorgan.
WDC cut to Neutral at JPMorgan.

Jon C. Ogg
June 18, 2007

Big List of Private Equity Targets in Financial Services

247wallst — Thu, 31 May 2007 09:32:00 +0000

There is a recent boutique research report from earlier in the week showing a list of potential private equity targets from a specialty brokerage firm that I was very positive on from even before its IPO: Keefe Bruyette & Woods (KBW). The truth is that this company is probably only behind Goldman Sachs (GS) as far as its knowledge of what is going on in the North American financial services sector, and the argument is that KBW is considered the number one firm as far as independent coverage of the financial services sector. It is too bad the company did not get this out at the end of last year to include many other names that have been gobbled up, but it really feels as though every firm is ‘cramming for finals’ in the M&A world with the private equity superstars.

PROCESSING: Fidelity National Information Services (FIS); FairIsaac (FIC); ChoicePoint (CPS). On a side note, Total SystemsSolutions (TSS) is Jim Cramer’s pick in the sub-sector. RATINGS: Moody’s (MCO). INSURANCE BROKERS (P&C): Marsh and McClennan (MMC), AON Corp. (AOC). INSURANCE: AFLAC (AFL), Conseco (CNO), and American Safety (ASI). MONEY MANAGEMENT: Legg Mason (LM), Janus Capital (JNS), Waddell & Reed (WDR), Federated Investors (FII), National Financial (NFP). LOANS, STUDENT LOAN: Nelnet (NNI).

We have our own list of targets in this financial services sector for our newsletter subscribers. Some of these companies make sense, and there are many others elsewhere in overlapping segments in financial services that may actually make more sense.

Jon C. Ogg
May 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.