Reuters: Google (NASDAQ:GOOG) and IBM (NYSE:IBM) posted strong results.
Reuters: Bank of America’s (NYSE:BAC) Lewis will skip 2009 pay.
Reuters: Japan Airlines says bankruptcy is an option to solving its problems.
Reuters: Soros says US economy will drag on world growth. Read More
Updated throughout the day.
Updated 2:00 PM EST: American Superconductor Corporation (NASDAQ: AMSC) has traded higher all day and some are noting takeover chatter on this one. We have yet to see anything credible, but this is up close to 4% at $32.60.
Updated 11:57 AM EST McGraw-Hill (NYSE:MHP) may be close to selling BusinessWeek and would only keep the brand and website. All editor staff members would be let go. (WWD)
Updated 11.47 AM EST Riverbed (NASDAQ:RVBD) may be a takeover target for Juniper (NASDAQ:JNPR) (Barron’s )
Updated 11.44 AM EST GE (NYSE:GE) and Comcast (NASDAQ:CMCSA) are still in talks about NBCU with a target for a decision in three weeks. (CNBC)
Update 11:00… Sequenom Inc. (NASDAQ: SQNM) is up another 9% today at $3.64. The trader chat is that management and employees may have had no wrongdoing in the botched test data. This is also not the first day of this, and we are not prepared to pan it or endorse it as it seems too soon.
Real estate developer Young Woo stands to make millions off his purchase of the AIG (NSYE:AIG) building (TheDeal)
The FDIC is questioning the results of a review of the Citigroup (NYSE:C) management team. (WSJ)
Chinese firm Sichuan Tengzhong could buy Hummer from GM as early as today (MarketWatch)
Vivendi will sell its 20% of NBCU, probably to GE (NYSE:GE) (The Street)
Sales of the Apple (NASDAQ:AAPL) iPhone and iPod are causing global flash memory shortages. (AppleInsider)
Charges against two former Bear Stearns executives could hurt JPMorgan’s (NYSE:JPM) bottom line (Fortune)
IRS workers may have had a role in questionable refunds. (Forbes)
The US may start an antitrust probe into the Live Nation (LYV) merger with TicketMaster (TKTM) (DealBook)
Douglas A. McIntyre
Reuters: GM says most of its cost cutting is done and its sales chief left.
Reuters: Spot gold hit a record above $1,050.
Reuters: The Senate healthcare bill weighs in at $829 billion.
Reuters: Dell (NASDAQ:DELL) plans its first smartphone to be launched with AT&T (NYSE:T) using the Google (NASDAQ:GOOG) Android OS Read More
These are the top ten early bird upgrades and downgrades we have seen this Thursday morning with about two hours until the open:
Jon C. Ogg
November 13, 2008
Live Nation (LYV) is about to sign over $150 million to rapper and serial business start-up master Jay-Z. For the privilege the NYSE listed company gets a piece of all Jay-Z’s business enterprises over the next ten years.
According to The New York Times "the arrangement would position Live Nation to participate in a range of new deals with Jay-Z, one of music’s most entrepreneurial stars, whose past ventures have included the Rocawear clothing line, which he sold last year for $204 million, and the chain of 40/40 nightclubs."
The deal won’t work on a number of levels. Jay-Z is almost 40 which is ancient in the rapper world. His most recent albums could not be given away for free. Whether he has more successful business ventures in his pocket is an open question. But, if he is no longer a popular rapper he has lost the coin of the realm which makes new enterprises more easy to open.
Last year Live Nation made only $32 million on $4.2 billion in revenue. The firm has long-term debt of $822 million.
LYV has a Jay-Z-like deal with Madonna. They have locked her up for years. She is also as old has the hills, which probably does not work to her advantage since she is not the Rolling Stones, still touring although most of them a close to 100.
Shares in Live Nation traded at $24 last October. Bad numbers and nut-job deals with major artist types have bought that share price down to under $13.
Jay-Z should be paid in LYV stock. At least then he could lose money, too.
Douglas A. McIntyre
Live Nation (NYSE: LYV) was added to Goldman Sachs BUY list this morning and at a $10.46 close it sees some 45% upside. Goldman Sachs also noted that it sees the third and final transition year leading into a significant equity appreciation potential for 2009 to 2010.
Precision Castparts Corp. (NYSE: PCP) was added to the America’s CONVICTION BUY LIST with some 44% upside to its $158 target. Goldman notes that shares are oversold at -20% year to date.
L-3 Communications (NYSE: LLL) has been removed from the America’s CONVICTION BUY LIST as valuations are now appropriate and leaving only 13% upside to its price target.
Jon C. Ogg
February 12, 2008
It appears that pop star Madonna is leaving Warner Music Group (WMG) for concert promoter Live Nation (LYV). The price tag is $120 million for 10 years. Live Nation will pay part in cash and part in stock, according to The Wall Street Journal. Under the arrangement, Live Nation will have" rights to sell three studio albums, promote concert tours, sell merchandise and license her name."
Some industry experts believe that each album would have to sell 15 million copies for LYV to get its money back. Lining up sponsors for events and tours could offset some of that.
WMG put on a brave face, but no one should be fooled. One large shareholder of Warner said he was fine with losing Madonna because the cost of keeping her may have been too high.
But, Warner should have gone the extra mile. There are only so many battles that the music company can afford to lose now. Its stock has fallen from $30 last June to under $10 late last month. The shares now change hands for $11.29.
The consumer move from CDs to music downloads is slowly killing Warner. It does not keep as much of a digital dollar as it does from a CD. And, each quarter a larger number of its customers move to platforms like the Apple (AAPL) iPod. Piracy has also eroded earnings.
Having a few big artists with enough star power to let Warner bring in money for sponsorships and merchandise will be critical to the company’s future. It can’t afford to let Madonna go no matter what it costs to keep her.
Douglas A. McIntyre
AKAM cut to Sell at Kaufman.
AUDC raised to Buy at Cantor Fitzgerald.
AVR cut to Underperform at FBR.
BPL raised to Buy at Deutsche Bank.
BGH cut to Hold at Deutsche Bank.
CKEC started as Overweight at JPMorgan.
CLC cut to Peer Perform at Bear Stearns.
CNK started as Overweight at JPMorgan.
FARO cut to Neutral at Baird.
GIS raised to Outperform at Credit Suisse.
GLUU started as Buy at Cantor Fitzgerald.
GLW started as Buy at Deutsche Bank.
IOM started as Buy at Cantor Fitzgerald.
JCOM cut to Mkt Perform at FBR.
KIM started as Outperform at Credit Suisse.
KYPH cut to Neutral at B of A.
LYV started as Overweight at JPMorgan.
NAPS started as Buy at Cantor Fitzgerald.
OMTR cut to Mkt Perform at JMP Securities.
PEIX cut to Underperform at FBR.
RGC started as Neutral at JPMorgan.
SHOR started as Overweight at JPMorgan.
VSE cut to Mkt Perform at FBR.
WYNN cut to Hold at Jefferies.
Jon C. Ogg
September 20, 2007
(AXP) American Express is selling its private banking unit.
(CFC) Countrywide is laying off loan originators and support staff as applications are down and to cut costs.
(CHINA) CDC Corp. announced a $225 million share stock offering.
(CLWR) Clearwire has insiders from debt conversion selling $369 million in stock.
(CRYP) Cryptologic gets a pact from World Poker Tour.
(EMC) EMC could be worth 20% more in a year according to Barron’s.
(GOOG) Google took a stake in Chinese community Web site Tianya.cn for social networking.
(KFN) KR Financial has shareholders selling 16 million shares; and will have a public rights offering up to $270 million; principals of Kohlberg Kravis Roberts will purchase up to approximately $100 million of common shares at $14.40 if not fully subscribed.
(KNSY) Kensey Nash $0.11 EPS vs $0.15 est.
(LLNW) Limelight Networks announced that MyVideo.de video delivery service in Germany has selected Limelight as its exclusive provider of CDN services.
(LOW) Lowe’s trading up 4% after $0.67 EPS vs. $0.61 estimates; same store sales fell 2.6% for the quarter.
(LYV) Live Nation may win Madonna from Warner Music in a $100 million deal.
(MHP) McGraw Hill down on JPMorgan downgrade.
(NDAQ) NASDAQ is reviewing alternatives to divest its stake in London Stock Exchange; says $1 Billion will be used to retire debt and buyback stock.
Jon C. Ogg
August 20, 2007
| Today’s top tickerspy Indexes | |
| Coffee Stocks | +16.3% |
| Hotel Stocks | +9.0% |
| 2009 IPOs | +8.2% |
| Education Stocks | +4.7% |
| Coal Stocks | +4.4% |
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