Cisco Systems Inc. (CSCO), whose CEO is optimistic about economic recovery, is scheduled to discuss its second-quarter fiscal 2010 financial results in a conference call Wednesday, Feb. 3, at 4:30 PM (ET). A live webcast of the call will be available at the company's website.

During the three months that ended in January, Cisco completed an acquisition, demonstrated new technologies at CES and announced some organizational changes. Analysts surveyed by Thomson Reuters are looking for earnings for that period of 35 cents per share. That compares with 36 cents per share in the previous quarter and 32 cents per share a year ago. Revenue for the second quarter is expected to be 3.5% higher than a year ago to $9.4 billion.

Continue reading Cisco Earnings Preview: Modest Growth Expected for Q2

Cisco Earnings Preview: Modest Growth Expected for Q2 originally appeared on BloggingStocks on Wed, 03 Feb 2010 10:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• After less than a year in office, Shinzo Abe, the prime minister of Japan, resigned, reported the Wall Street Journal.
• With its sights set on Toyota Motor Corporation (NYSE: TM), Volkswagen AG (OTC: VLKAY) CEO Stefan Jacoby says he'll nearly triple sales of vehicles in the U.S. over the next decade, reported the Wall Street Journal.
• Barron's Online's "Inside Scoop" column reported that director James Burke purchased $1.1M worth of AnnTaylor Stores Corporation (NYSE: ANN) stock on Friday, marking the first open-market purchase by an AnnTaylor insider in at least five years, according to InsiderScore.com.

• According to the U.K. Times, British bank Barclays (NYSE: BCS) has invested $1.5B in Golden Key, a fund that has gotten into trouble as a result of the global liquidity squeeze.
• Aluminum company Alcan Inc (NYSE: AL) is reportedly in talks to sell its packaging unit to India's Essel Group, reported the Economic Times.
• Music publishers have intensified their efforts to shut down popular Web sites that publish song lyrics without permission, reported the New York Post. The publishers are also demanding that Google Inc (NASDAQ: GOOG) and Yahoo! (NASDAQ: YHOO) remove all references to the offending sites from their search engines.

Newspaper wrap-up: Barclays to bail out Golden Key originally appeared on BloggingStocks on Wed, 12 Sep 2007 09:10:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Polo Ralph Lauren (NYSE: RL) was initiated with a Market Perform rating at Piper Jaffray. The firm feels the risk/reward is balanced at current levels given the near-term risks from increased investment and exposure to inconsistent U.S. wholesale markets.

• Goldman Sachs resumed coverage of Alcan (NYSE: AL) and Alcoa (NYSE: AA) with Neutral ratings and a $101 target and $48 target, respectively.

• Morgan Joseph is positive on Conn's Inc's (NASDAQ: CONN) strong track record of growth, new store growth and easy comps, and initiated shares with a Buy rating and $34 target.

• Merriman initiated shares of Blue Coat Systems (NASDAQ: BCSI) with a Buy rating.

• Stifel initiated shares of Pharmerica (NASDAQ: PMC) with a Hold rating on valuation.

• Equinix (NASDAQ: EQIX) and SAVVIS, Inc (NASDAQ: SVVS) were initiated at CIBC World Markets with Sector Performer ratings.

Analyst initiations 7-26-07: Alcoa, Alcan, Polo Ralph Lauren originally appeared on BloggingStocks on Thu, 26 Jul 2007 12:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" reported that a batch of sales at Alcoa Inc (NYSE: AA) has followed Alcoa's withdrawal of its offer to purchase Alcan Inc (NYSE: AL): from July 13-17, four senior executives grossed $41.3M by selling 877,600 shares on the open market at per-share prices ranging from $46.67 to $47.47, according to SEC data.
• Andrew McKelveey, the founder and former CEO of Monster Worldwide Inc (NASDAQ: MNST) was allegedly involved in the backdating of stock option grants for employees, reported the Wall Street Journal (subscription required).
  

• Vodafone Group plc (NYSE: VOD) CEO Arun Sarin made a concession to rebel shareholders yesterday by promising to release value from Verizon Wireless, a joint venture in which Vodafone has a 45% stake, reported the U.K. Times.
• From BusinessWeek's "Inside Wall Street" column:
• Activist shareholders are putting pressure on Brink's Company (NYSE: BCO) to spin-off its home security unit, so that it can trade independently of the armored cars.
• Pipex Pharmaceuticals Inc (AMEX: PP) has been off Wall Street's radar screen, but perhaps not for long. Pipex may have a stable of winners in the making, including an orphan drug designation.
• The aircraft, auto, and architecture sectors are expected to be big users of Research Frontiers Inc's (NASDAQ: REFR) SmartGlass technology, which lets glass go from clear to opaque fast.

Newspaper wrap-up 7-20-07: Monster founder involved in options backdating originally appeared on BloggingStocks on Fri, 20 Jul 2007 09:15:00 EST. Please see our terms for use of feeds.

It is hard not to find one large metals company that is not trying to buy another or get bought. Alcan (NYSE: AL) looks like it will be sold to Rio Tinto (NYSE: RTP), although Alcoa (NYSE: AA) had hoped to be the winner in that auction.

But now, The Times of London has written that one or more unidentified hedge funds are trying to get Alcoa (NYSE:AA) to put itself on the block.

Another UK newspaper, the Observer, writes that Australia-based BHP Billiton (NYSE:BHP), which has retained Merrill Lynch and JP Morgan, may be the company that will take Alcoa out of the hands of its public shareholders.

Compared to Alcan, Alcoa looks cheap. While the Canadian company's shares are up well over 100% in the last year, Alcoa's are up only 60%.

The race now is to see which companies can lock up the most manufacturing capacity, mining, and buying leverage. Rio Tinto and Alcan are about to create an extremely large operation and no one else wants to be left standing when the music stops.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Aluminum bidding wars: Alcoa's turn? originally appeared on BloggingStocks on Mon, 16 Jul 2007 10:01:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• IHOP (NYSE: IHP), of pancake house fame, is buying Applebee's International Inc (NASDAQ: APPB), the huge casual dining restaurant chain, for $2.2 billion in a deal concluded last night, reported the Wall Street Journal (subscription required).
• Vodafone Group (NYSE: VOD) is looking at a possible $160 billion bid for Verizon Communications Inc (NYSE: VZ), reported the Financial Times (subscription required).

• The U.K. Times reported that Ford Motor Company (NYSE: F) is preparing to sell Volvo, the Swedish car group it bought eight years ago, in a move that could raise $8 billion.
• The Observer reported that BHP Billiton (NYSE: BHP) is lining up a £20 billion bid for Alcoa Inc (NYSE: AA), after its bid for rival Alcan Inc (NYSE: AL) was trumped by Rio Tinto (NYSE: RTP).
• Large American Internet companies, possibly including Google Inc (NASDAQ: GOOG) and Yahoo Inc (NASDAQ: YHOO), are considering snapping up Rediff.com India (NASDAQ: REDF), which runs one of India's most popular consumer Internet portals, reported the Hindustan Times.

Newspaper wrap-up 7-16-07: IHOP buying Applebee's originally appeared on BloggingStocks on Mon, 16 Jul 2007 09:30:00 EST. Please see our terms for use of feeds.

Option players made some nice profits in the Rio Tinto (NYSE: RTP)'s offer for Alcan Inc. (NYSE: AL). It was widely reported yesterday afternoon in Toronto's Globe and London's Times that a proposal could be coming from Rio Tinto. Another offer for Alcan is not surprising since Alcoa Inc. (NYSE: AA) previously offered $76.03 a share.

A call option can be a great way to play news events like this as it has an unlimited upside and limited downside. A call option is advanced financial instrument that gives the buyer the right to purchase a stock at a set price. If the stock goes above that price investors can either sell the appreciated option or exercise them buying the stock at the predetermined strike and selling it at market.

Yesterday, with the news on Alcan, there were 14,884 call options traded versus 3,124 put options. There were four times as many call options traded on Alcan as put options. Total open interest on Alcan was 103,926 call options and 66,229 put options. That means that about 14.3% of all the open calls on Alcan were traded just yesterday -- a very active day for the options on the stock.

Some of these call buyers did quite well -- the most active strike was the August 90 call (AL HR), which saw 3,787 contracts trade against an open interest of only 760 contracts. These contracts traded for less than $4.00 a piece yesterday, and are now worth about $8.30, a 107% gain.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

Options active on Alcan before buyout offer originally appeared on BloggingStocks on Thu, 12 Jul 2007 12:07:00 EST. Please see our terms for use of feeds.

Alcoa (NYSE: AA) made its best offer for Alcan (NYSE: AL) or so its seems. The U.S. company was willing to spend $28 billion to buy its Canadian rival.

The bid was bested today [subscription required] by Rio Tinto (NYSE: RTP), another metals company. Its bid is $38 billion. That offer is unlikely to be topped. According to The Wall Street Journal, the combined company will have over $16 billion in cash flow. Assuming, of course, that the price of aluminum stays near historic highs.

The most stunning thing about the Rio Tinto bid is that Alcan was trading at $45 a share at the beginning of the year. Rio Tinto's offer is about $101 a share in cash.

If the forecasts for future earnings are off by much, Rio Tinto's shareholders could end up paying the freight.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Rio Tinto gets Alcan originally appeared on BloggingStocks on Thu, 12 Jul 2007 08:43:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Thanks to a downturn in sales, sportswear maker Liz Claiborne Inc (NYSE: LIZ) will seek to divest itself of 16 of its 36 apparel brands, equal to about $800 million of its $5 nillion in annual revenue, reported the Wall Street Journal (subscription required)
• The Financial Times (subscription required) reported that Dell Inc (NASDAQ: DELL) has listened to customer concerns and has moved to eliminate "trialware" from a range of small business laptops and desktops computers.

• British mining company Rio Tinto plc (NYSE: RTP) is believed to be preparing a $34 billion, or $90 per share, takeover bid for Canadian aluminum company Alcan Inc (NYSE: AL), reported the U.K. Times.
• According to the Economic Times, FedEx Corporation (NYSE: FDX) has failed in its attempt to buy out Indian logistics company SafeExpress.
• The Chicago Tribune reported that the U.S. faces an "increased risk" of a terror attack this summer, according to U.S. Homeland Security Secretary Michael Chertoff.

Newspaper wrap-up 7-11-07: Dell to eliminate trialware in some new computers originally appeared on BloggingStocks on Wed, 11 Jul 2007 09:15:00 EST. Please see our terms for use of feeds.

Before the bell 7-10-07: Stock futures lower after HD warns originally appeared on BloggingStocks on Tue, 10 Jul 2007 07:46:00 EST. Please see our terms for use of feeds.

Alcoa (NYSE: AA) announced modest earnings yesterday. Net income was down slightly, but revenue hit a record $8.1 billion. The big aluminum company also extended its offer to buy shares in rival Alcan (NYSE: AL) until August 10. Alcan's board keeps saying that the offer is not high enough, and this has fueled rumors that metals company Rio Tinto (NYSE: RTP) might make a run at the Canadian company.

But, the M&A circle would not be complete if someone did not want to buy Alcoa. Indeed its appears that a shopper has stepped forward as Australian metals giant BHP Billiton (NYSE: BHP) is looking for a partner to buy Alcoa. Merrill Lynch has been retained to help line up private equity money. Alcan may be an alternate target if a deal for Alcoa cannot be struck

The stunning aspect of these buyout offers is the amount that all of the metals stocks are up already. Metal commodities prices are rising, but can't go up indefinitely.

Alcoa's shares are up the least in the last year, only 30% or so, making it a tempting target. Alcan's shares are up 80%, which probably makes it expensive. Rio and BHP are each up about 60%.

BHP has a natural advantage which makes it the most likely company to suck up another company. It has a market cap of over $200 billion to Alcoa's $36 billion. Big difference.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Alcoa becomes the hunted originally appeared on BloggingStocks on Tue, 10 Jul 2007 07:19:00 EST. Please see our terms for use of feeds.

With second quarter earnings season kicking off at the closing bell, all eyes are on Alcoa, Inc. (NYSE: AA). AP reports that investors are expecting it to post a profit of 83 cents a share.

As I've posted many times, we live in a beat-and-raise market. That means a company needs to beat quarterly earnings expectations and raise its guidance for future revenues and profit in order for the stock to rise after it reports. So investors will be looking closely at Alcoa's results and listening closely to management's conference call for signs of whether to buy or sell its stock.

Investors may be concerned about how Alcoa will achieve the objectives it had for its hostile effort to merge with Alcan, Inc. (NYSE: AL) if the deal falls through. Bloomberg News reports that absent the deal, Alcoa could tumble to the third rank among the world's largest aluminum producers. Meanwhile, production losses at two U.S. smelters hurt net income, according to Credit Suisse analysts including David Gagliano, who forecast earnings of 75 cents a share -- well below the 83 cents consensus.

Alcoa has exceeded earnings estimates in four of the the last five quarters. But this one looks dicey.

Update: Alcoa reported earnings of 81 cents a share -- two pennies short of expectations. However, Bloomberg News reports that profit excluding items topped analysts' estimates by one cent. Sales climbed 3.5% to $8.07 billion. The stock fell 1.1% in after hours trading.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.

Alcoa misses by two pennies originally appeared on BloggingStocks on Mon, 09 Jul 2007 17:30:00 EST. Please see our terms for use of feeds.

Alcoa-Alcan process moves forward originally appeared on BloggingStocks on Fri, 06 Jul 2007 11:20:00 EST. Please see our terms for use of feeds.

Before the bell 6-19-07: EXPE, LCC, BA, GE, SIRI ... originally appeared on BloggingStocks on Tue, 19 Jun 2007 08:47:00 EST. Please see our terms for use of feeds.

Alcoa (NYSE: AA) has been trying to buy rival aluminum company Alcan (NYSE: AL) for several months. But it now appears that the hunter may become the hunted.

Australian metals company BHP Billiton (NYSE: BHP) is considering making a bid for Alcoa. According to The Times of London, the value of the buy-out could be as high as $40 billion.

BHP can afford the purchase, but it comes with a very substantial risk. The company has a market cap of $194 billion. Alcoa's is $36 billion.

Any bid for Alcoa, however, will rest on the high price that the company can get for aluminum and growing demand for the metal. The price of the metal averaged $1.16 per pound last year. Over the six previous years, the price averaged $0.72. Global supplies are still tight.

Like all commodities, the price of aluminum could fall quickly. Production in China is up sharply, which could eventually put pressure on prices.

Buying Alcoa is only a good deal if aluminum prices rise and that can only go on for so long.

Douglas A. McIntyre is a partner at 247 Wall St.

Is Alcoa a takeover target? originally appeared on BloggingStocks on Mon, 18 Jun 2007 09:40:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY

• Dean Foods Co (NYSE: DF) was cut to Neutral from Overweight at JP Morgan to reflect future guidance concerns after management's cautious tone.

• Louisana-Pacific Corp (NYSE: LPX) was downgraded to Strong Sell from Buy at Matrix USA. The firm believes a weak housing market is having a significant negative impact on shares and sees downside to $14/share.

• Costco Wholesale Corp (NASDAQ: COST) was taken off the Strategic Stock List at UBS based on valuation.

• Bear Stearns cut Alcan (NYSE: AL) to Peer Perform from Outperform based on valuation.

• Oppenheimer downgraded Horizon Offshore (NASDAQ: HOFF) to Neutral from Buy on news of the acquisition by Cal Dive International (NYSE: DVR) as the firm believes the likelihood of a materially higher bid is low...

• Goldman cut Federal Signal Corp (NYSE: FSS) to Sell from Neutral.

• AG Edwards downgraded EPIQ Systems, Inc (NASDAQ: EPIQ) to Hold from Buy.

• Raymond James downgraded United Community Banks, Inc (NASDAQ: UCBI) to Neutral from Buy.

• Wachovia cut Targa Resources Partners LP (NASDAQ: NGLS) to Market Perform from Outperform.

• Gerdau Ameristeel Corp (NYSE: GNA) was downgraded to Sell from Neutral at Goldman.

• Nucor Corp (NYSE: NUE) was taken off Goldman's Conviction Buy List.

Analyst downgrades 6-13-07: AL, COST, DF and HOFF originally appeared on BloggingStocks on Wed, 13 Jun 2007 11:44:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that CDW Corporation (NASDAQ: CDWC), a $6B market cap technology retailer, is being hotly pursued by a number of private equity firms including Madison Dearborn Partners.
• Avaya Inc (NYSE: AV), a telecommunications equipment maker, is said to be interested in selling all or part of the company, and is in talks with private equity firms and strategically interested companies, the Wall Street Journal also reported.

• Dr. Ronald Krall, the medical director for GlaxoSmithKline plc (NYSE: GSK) told the New York Times that some of the 4,450 patients enrolled in the drug trial for Avandia have dropped out due to safety concerns
• Norsk Hydro ASA (NYSE: NHY) is looking at the possibility of making an offer for Canadian aluminum producer Alcan Inc (NYSE: AL), Globe and Mail reported.
• The Sydney Morning Herald reported that mining company Rio Tinto plc (NYSE: RTP) has hired Deutsche Bank AG (NYSE: DB) to advise it on a possible bid for Alcan.

• According to a report from Chinese-language Commercial Times and noted in DigiTimes, Quanta Computer has reportedly received an order for five million iPhones from Apple Inc (NASDAQ: AAPL) and that the 2nd generation device will offer "a different outer design to fit different markets."

Newspaper wrap-up 5-29-07: CDW Corporation being pursued by private-equity originally appeared on BloggingStocks on Tue, 29 May 2007 09:43:00 EST. Please see our terms for use of feeds.

Before the bell 5-29-07: M&A activity pushing stocks higher originally appeared on BloggingStocks on Tue, 29 May 2007 07:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that Alcoa Inc (NYSE: AA) said it won't raise its $27.62B bid for Alcan Inc (NYSE: AL), possibly opening the door for rivals such as BHP Billiton Limited (NYSE: BHP) and Rio Tinto plc (NYSE: RTP).
• The Wall Street Journal's "Heard on the Street" column reported that analysts and investors think there's more room for growth at Tiffany & Co (NYSE: TIF).
• The Financial Times reported that institutional investors are looking to oust a board member at Exxon Mobil Corporation (NYSE: XOM) due to his "inaction" on their climate change strategy.

• The U.K. Times reported that HSBC Holdings (NYSE: HBC) is looking to expand into Colombia.
• The Economic Times reported that Wal-Mart Stores Inc (NYSE: WMT) may buy a stake in Indian logistics company Radhakrishna Foodland, citing the Indian company's founder.

Newspaper wrap-up 5-23-07: Wal-Mart may buy stake in Indian company originally appeared on BloggingStocks on Thu, 24 May 2007 09:15:00 EST. Please see our terms for use of feeds.

• Crescent Real Estate Equities to be purchased by Morgan Stanley (NYSE: MS) Real Estate
• Payless ShoeSource (NYSE: PSS) to acquire Stride Rite (NYSE: SRR)
  
• Dow Jones & Co. (NYSE: DJ) controlling shareholders, the Bancroft family, meeting to review News Corp (NYSE: NWS) offer
• Sallie Mae making management changes for its take-private transaction
• Alcan Inc. (NYSE: AL) rejects Alcoa Inc.'s (NYSE: AA) $27 billion offer as inadequate
• MGM Mirage (NYSE: MGM) approach by Kirk Kerkorian's Tracinda Corp requires delicate strategy.

Buyout bubble: Getting there, but not yet originally appeared on BloggingStocks on Wed, 23 May 2007 10:53:00 EST. Please see our terms for use of feeds.