According to Reuters, banks may be hard hit by the bankruptcy of General Growth (GGP) and future commercial real estate defaults.
Reuters reports that VW may overtake Toyota (TM) as the No.1 car company in the world in Q1.
Reuters writes that Google (GOOG) profits beat expectations.
Reuters reports that Fed official see signs of improvement in the economy.
Reuters reports that US businesses are worried that the China stimulus package favors local companies. Read More
General Growth (GGP), the big mall owner, filed for bankruptcy, as many experts thought it would. The company has $27 billion in debt and, with real estate prices depressed, it may be impossible to raise even close to that amount of money through asset sales.
As would be expected with any large commercial real estate enterprise, General Growth is highly leveraged and was probably able to get mortgages with ease at the height of the real estate boom. Read More
These are some of the top analyst downgrades and cautious research calls we have seen from Wall Street early this Tuesday morning:
Ansys (ANSS) Cut to Neutral from Overweight at JPMorgan.
Cabot (CBT) Cut to Underweight at JPMorgan.
Consolidated Edison (ED) Cut to Neutral at Credit Suisse.
Cullen/Frost Bankers (CFR) Cut to Underperform at Oppenheimer.
Duke Energy (DUK) Cut to Neutral at Credit Suisse.
Eli Lilly (LLY) Cut to Underperform at Leerink Swann.
Estee Lauder (EL) Cut to Sell at UBS.
General Growth Properties (GGP) Cut to Market Perform at Wachovia.
Headwater (HW) Cut to Hold at Canaccord Adams.
Intuitive Surgical (ISRG) Cut to Market Perform at Leerink Swann.
Omniture (OMTR) Cut to Hold at Citigroup.
Royal Bank of Scotland (RBS) Cut to Market Perform at Bernstein.
JON C. OGG
According to Reuters, Citigroup (C) has begun the process of breaking itself into pieces.
Reuters reports that Chrysler is in deal talks about selling assets to Renault or Magna.
Reuters reports the Obama is struggling to get the rest of the TARP funds.
Reuters writes that Yahoo!’s (YHOO) new CEO lacks Internet and deal-making experience.
Reuters reports that General Growth (GGP) has requested further loan extensions.
On December 5th, 2008, Pershing Square owned 20,080,690 shares or 7.5% of General Growth Properties. As of January 9th, 2009, Ackman’s Pershing Square now owns 22,901,194 shares or 7.4% of GGP.
Pershing purchased 2.82 million shares or $4,822,035 worth of General Growth Properties shares.
According to Reuters, Chrysler is running out of time and options for staying in business.
Reuters reports that American Express (AXP) is seeking $3.5 billion from the government bailout fund.
Reuters writes that Goldman Sachs (GS) intends to operate as it has in the past even though it is now a bank holding company.
General Growth Properties (GGP) Concerns about bankruptcy. Falls to $.33 from 52-week high of $51.24.
Genworth (GNW) Moody’s downgrade causes shares to plunge to $1.19 from 52-week high of $28.21.
Tyson Foods (TSN) JP Morgan downgrades stock after its posts earnings. Falls to $4.82 from 52-week high of $19.50.
Sprint Nextel (S) Still falling after poor earnings. Dips to $2.37 from 52-week high of $16.37.
Citigroup (C) More concerns about banking write-offs. Drops to $10.34 from 52-week high of $37.50.
GM (GM) Bankruptcy still in the picture. Down to $2.75 from 52-week high of $32.19.
Focus Media (FMCN) Turns in extremely disappointing numbers. Sells off to $7.54 from 52-week high of $60.73.
Dryships (DRYS) Food and energy shipments drop. Down to $9.93 from 52-week high of $116.43.
Douglas A. McIntyre
Genworth (GNW) DIvidend cut. Drops to $2.55 from 52-week high of $28.21.
Unisys (UIS) No news but falls over 30% to $.79 from 52-week high of $7.90.
Sunrise Assisted Living (SRZ) Large quarterly loss. Falls to $1.82 from 52-week high of $34.87.
General Growth (GGP) Analayst downgrade still hurting. Falls to $1.91 from 52-week high of $51.24.
THERMOGENESIS (KOOL) Product recall and quarterly loss. Falls to $.44 from 52-week high of $2.25.
Delta Petroleum (DPTR) Offer to buy company falls through. Stock off to $3.89 from 52-week high of $28.37.
Douglas A. McIntyre
These are some of the many analyst downgrades we have seen on Wall Street this Thursday morning:
Jon C. Ogg
November 6, 2008
General Growth Properties (CGP) Trouble re-financing. Down to $3,51 from 52-week $57.84,
Trina Solar (TSL) Solar stocks downgraded on oversupply. Falls to $12.43 from 52-week high of $68.25.
Royal Bk Scotland Group (RBS) Worries about capital adequacy of UK banks. Down to $1.41 from 52-week high of $11.22.
Sanmina (SANM) Downgraded by Credit Suisse. Falls to $.93 from 52-week high of $2.66.
Douglas A. McIntyre
General Growth Properties Inc. (NYSE: GGP) is getting a lift this morning on what many would consider bad news. The REIT has replaced its chief financial officer and suspended its dividend, a day after a report that executives have been selling their stock. Based on yesterday’s near-50% slide, Wall Street is trying to take this in stride.
CFO Bernard Freibaum is out effective immediately and will be replaced by Edmund Hoyt on an interim basis while a search for a permanent replacement is conducted. Hoyt has been the chief accounting officer since 2000.
General Growth Properties (GGP) S&P cuts ratings on growth concerns. Falls to $7.25 from 52-week high of $57.84.
Mosaic (MOS) Fiscal quarter earnings miss mark. Drops to $39.50 from 52-week high of $163.25.
Potash Corporation (POT) Fertilizer company hit by downgrade and falling grain prices. Plunges to $93.65 from 52-week high of $241.62.
Coeur d’Alene Mines (CDE) Analyst downgrade. Sells down to $1.11 from 52-week high of $5.18.
Many REITs are in trouble. That is becoming the understatement of the year. The REITs doing better in today’s environment are the ones whose projects are already built and those that were fully leased. This is particularly true of retail and office REIT structures where investors are starting to become more risk adverse.
General Growth Properties, Inc. (NYSE: GGP) has been among the worst performers of retail and multi-use REITs. Last week was deemed by many as the apex but that didn’t hold. The company has secured additional funding in recent weeks, but is still back in the barrel. Financing needs apparently still prevail and last week executives had to sell shares to cover margin calls. Now, it is reviewing strategic alternatives and shares are down again. In summer these shares were north of $40.00 and in the first half of 2007 this was a $60+ stock. On September 12, this was at $27.55. Last week it closed as low as $19.92 before Friday’s recovery. Shares today are down 17% at $17.70.
Today was an interesting ride in the 52-week low club after we have seen very volatile markets. While oil fell $1.00 and while the S&P, NASDAQ, and DJIA were up most of the day, there were plenty of stocks gracing the 52-week lows:
As the markets went back to triple-digit losses, there were many more new stocks (and repeat performers) on the 52-week low club today. Many of these look just like an explosion in a city at night. Not all of these closed on 52-week lows, but these did hit new intra-day lows of consequence:
Cameco (NYSE: CCJ)… Cigar Lake update showed more water entering the uranium mine hole.
Calpine (NYSE: CPN)… rose back above old $15.00 low, but shares down by one-third since July 1.
CECO Environmental Corp. (NASDAQ: CECE)… on added earnings concern; with a name like that you’d think they would do better as shares are down 70% from highs.
These are the early bird Downgrades and negative calls from analysts we are seeing this Thursday morning:
Jon C. Ogg
July 31, 2008
Bearingpoint (BE) Still dropping after loss earlier in the month. Down to $2.53 from 52-week $8.56.
General Growth Properties (GGP) REIT stocks are getting killed. Falls to $41.93 from 52-week high of $67.43.
Delta Financial (DFC) Files for bankruptcy. Falls to $.07 from $13.60 at 52-week high.
Peregrine Pharmaceuticals (PPHM) Contract with US government halted. Falls to $.35 from 52-week high of $1.40.
Douglas A. McIntyre
(BEXP) Brigham Exploration increased natural gas production guidance from 42-45MCF to 44-46MCF.
(BLK) Blackrock will acquire the fund of funds business of Quellos for up to $1.7 Billion.
(BSC) Bear Stearns has report in WSJ that it is reluctant to bail out a second hedge fund from last year.
(CERS) Cerus announced a supply pact for its INTERCEPT blood system for platelets to French national blood service.
(EAS) Energy East $28.50 buyout from Spain
(ENCY) Encysive Pharma traded up on new CEO replacement.
(EYE) Advanced Medical Optics lowered 2007-2008 EPS guidance below consensus due to recall of its MoisturePlus.
(GGP) General Growth Properties will replace Mellon in S&P 500 after close on Friday June 29.
(GILT) Gilat Satellite gets SkyEdge broadband satellite network.
(ITT) ITT Industries is acquiring international Motion Control for $395 million.
(IXYS) IXYS Corp. lowered revenue target to $70 to $72 Million from $74.99 Million.
(LEN) Lennar posted a loss instead of a small gain, and revenues were down more than 30%; shares indicated down 2-5%.
(MO) Altria plans to maximize its savings on tobacco production; will see pre-tax savings of $355 Million.
(OMC) Omnicom trading ex-split to reflect a 2-1 stock split.
(OPTT) Ocean Power Tech named a new COO.
(RAIL) Freightcar America put EPS at $0.85 to $0.95 vs $1.18 estimate; announced new 1900 hopper railcar orders.
(RDYN) Replidyne announced positive Phase I results for topical antibiotic REP8839.
(SCMM) SCM Micro sees revenues down approximately 20%.
(SWSI) Superior Well Services announced that officers David Wallace, Jacob Linaberger and Rhys Reese each adopted 10b5-1 stock trading plans.
(TEK) Tektronix increased share buyback plan for $350 million worth of shares.
(TGT) Target guided sales to lower end of a 3-5% range.
(TLCV) TLC Vision purchased 20 million at average $5.75 per share.
(ULBI) Ultralife Batteries announced orders valued at approx $1.8 million to supply batteries and chargers to a major defense contractor.
(VMSI) Ventana gets $75 buyout offer from Roche, although Ventana declined talks.
Jon C. Ogg
June 26, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
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