San Francisco Fed Reserve Bank President Yellen to speak about the U.S. economic outlook at the University of California/San Diego with a Q&A session.
Aracruz Cellulose (NYSE: ARA) to report Q2 earnings; conference call at 11:00am.
Tuesday, July 8
Richmond Fed Reserve Bank President Lacker to speak about U.S. economic outlook to the National Economists Club in Washington with a Q&A session expected.
Next week's annual shareholder's meeting in Fayetteville should once again be more spectacle that business.Last year, Wal-Mart Stores, Inc. (NYSE: WMT) seemed to spend more money lining up speakers, having pieces of its global operations dance with flags and having a pep rally rather that digging into issues.This year, expect the same -- as the retailer has already opposed all the shareholder proposals anyway, so it should be a nice, big party full of entertainment. Nothing else.
But Wal-Mart is enhancing one of its corporate messages this year: the way shareholders vote on the proposals. The annual report this year will include less pages and will be printed on lighter, recycled paper with Wal-Mart's investor relations website printed on it to direct shareholders there for further reading. This is an area where Wal-Mart can afford to be not so green. If you're like me, you may prefer annual reports on printed paper. Call me old fashioned, but a highlight marker, a quiet desk and a good reading light comprise the best environment for reading an annual shareholder report.
Wal-Mart, of course, defended its action to sway more shareholders to its IR website for the full annual report by stating that "we're glad that an increasing number of our shareholders worldwide have joined us in that effort ... by filing their proxy ballots electronically." Seems there is little choice for the alternative to me. If you're interested, head over here and read the proxy statement. If you're a shareholder, you can go ahead and vote on the web as well. Put away the highlighter, though.
In case you haven't noticed it, oil prices are surging, and the impact of these high prices is not going unfelt by the major airlines. Today, Europe's largest airline, Air France-KLM, stated what most of us already knew... it's not going to be a pretty year for the company's bottom line.
During its fiscal fourth quarter the airline swung to a loss of $853.81 million. During the same period last year the company was able to show a profit of $44 million.
The current surge in oil prices (which hit $135 earlier today), definitely played a role in the weak quarter, but were not the main culprit in the hefty loss. Most of the loss was due to $834 million after-tax provision due to a European and U.S. investigation into the air-cargo industry.
Refineries in the U.S. are producing more diesel fuel and less gasoline. The reason is simple and logical. They make more money on diesel.
According toThe Wall Street Journal, "The global hunger for diesel, coupled with tight refining capacity, has made diesel one of the few bright spots in the refining business." Demand in developing countries, where diesel fuel is widely used, gives the refiners a set of large markets.
Refiners believe that falling demand for gas due to a poor economy means that they can cut back gas production. There is something wrong with that reasoning because gas has moved to $4 a gallon. Refiners come back with the fact that the price of diesel is up even more.
The perverse thinking about how to divide gas and diesel production almost certainly argues for one conclusion: gas prices are going higher if supply is dropping.
One of the messages out of the Google (NASDAQ:GOOG) shareholder meeting was that management plans to make more money on huge video-sharing site YouTube. Without going into detail, the search company said it would bring out sets of software tools which would make it easier for marketers to use the site more effectively.
According toReuters, Eric Schmidt, the company's CEO "said getting the video sharing site to make money is the Web search company's top priority for the year." It is a nice promise, but it is hard to see how it will work.
Unlike new video sites including Hulu, a premium content web destination used by the large media companies to showcase their video, most of the YouTube content is posted by the ordinary citizen. The clips are primarily short and of poor quality. For some time, one of the most popular videos on YouTube was "The Farting Preacher." That may not be the kind of content big marketers find appropriate to use to draw new customers.
YouTube's problem is not its size. It is the largest video site in the world, based on visitors. But, it is also a website based on a community of people who see its as a place to homestead with the own content. Advertisers may never be comfortable with that.
Day one of the two-day FDA Anesthetic/Life Support Drugs & Drug Safety/Risk Management Advisory Committees meeting: Purdue Pharma's NDA for Oxycontin.
Anadarko Petroleum (NYSE:APC) to report Q1 earnings; conference call Tuesday at 10:00am.
Tuesday, May 6
Day two of the two-day FDA Anesthetic/Life Support Drugs & Drug Safety/Risk Mgmt Advisory Committees meeting: Cephalon's (NASDAQ:CEPH) sNDA for Fentora.
Molson Coors (NYSE:TAP) to report Q1 earnings; conference call at 12:00pm.
As was reported in AP online, "Members of the Rockefeller family are pressuring Exxon Mobil (NYSE: XOM) to focus more on renewable energy. The family members, who say they are the oil giant's longest continuous shareholders, say Exxon is too focused on short-term gains from sky-high oil prices. They also argue splitting the roles of chairman and CEO will help the company be more flexible in the future."
Last time I checked, companies had a responsibility to provide value for shareholders, and no one has done it better than the oil giant. It has been producing record earnings quarter after quarter, and that is exactly what it is supposed to do. Corporations are not supposed to be politically correct organizations that throw money around at the latest fad. Maybe Exxon doesn't believe that there is a global warming problem? Or maybe it wants to see a lot more scientific evidence of the problem before committing billions and billions of dollars to research. If I were a shareholder, I would want management to take the exact approach that it has been taking. The fact that it is the most profitable company in the world means something. It should be commended for providing shareholder value.
In fact, Bloomberg has an article that says that ocean cooling will stop global warming. Moreover, the article indeed mentions that the authors tried to spin the article because of Exxon. "We thought a lot about the way to present this because we don't want it to be turned around in the wrong way," Keenlyside said. "I hope it doesn't become a message of Exxon Mobil and other skeptics."
Sounds to me that they are right to be skeptical.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/1/08
PDUFA date for Genentech, Inc. (NYSE: DNA) and Roche Holding Ltd. (OTC: RHHBY)'s supplemental Biologics License Application for Herceptin for label expansion to include AC followed by docetaxel in treatment of adjuvant HER2+ breast cancer.
PDUFA date for Shire plc (NASDAQ: SHPGY) and New River Pharma's supplemental New Drug Application for Vyvanse (NRP-104) treatment of Attention Deficit Hyperactivity Disordre, or ADHD, in adult patients 18-55 years old; the drug is already approved for pediatric ADHD ages 6-12.
Verizon Communications Inc. (NYSE: VZ) to report Q earnings; conference call at 8:30am.
Tyson Foods, Inc. (NYSE: TSN) to report Q2 earnings; conference call at 9:00am.
Tuesday, April 29
Two-day FOMC meeting beginning at 8:30am.
PDUFA date for Merck & Co., Inc. (NYSE: MRK)'s New Drug Application for Cordaptive (MK-0524A) adjunctive therapy to diet for treating elevated LDL Cholesterol, low HDL Cholesterol and elevated triglycerides levels.
PDUFA date for Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP)'s supplemental New Drug Application for dose of 8mg treatment of Irritable Bowel Syndrome with Constipation; already approved for Chronic Idiopathic Constipation at 24ug dosage.
BP plc (NYSE: BP) to report Q1 earnings; conference call at 10:15am.
United States Steel Company (NYSE: X) to report Q1 earnings; conference call at 2:00pm.
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Monday, July 7
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