BloggingStocks

Closing Bell: A directionless day (AET, C, GLW, ERIC, SLB, VZ)

Jon Ogg — Mon, 27 Jul 2009 16:00:00 EST

Filed under: Citigroup Inc. (C), Aetna Inc (AET), Corning Inc (GLW), Verizon Communications (VZ)

Everything was looking up this morning, up until the reaction to companies and their earnings reports. The market felt directionless all day after losing its initial gains despite a new home sales data release that was well above expectations. Ben Bernanke defended his stance on avoiding the next depression. The SEC also issued new short sale abuse guidelines.

Here are today's unofficial closing bell levels:

Dow 9,108.59 +15.35 (0.17%)
S&P 500 982.19 +2.93 (0.30%)
Nasdaq 1,967.89 +1.93 (0.10%)

Top 10 Analyst Upgrades and Downgrades

Continue reading Closing Bell: A directionless day (AET, C, GLW, ERIC, SLB, VZ)

Closing Bell: A directionless day (AET, C, GLW, ERIC, SLB, VZ) originally appeared on BloggingStocks on Mon, 27 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

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Alltel throws a stick at the competition, switches to one-year contracts

Brian White — Fri, 05 Jun 2009 13:10:00 EST

Filed under: Competitive Strategy, Verizon Communications (VZ)

Alltel Wireless, which is in the midst of being acquired by Verizon Wireless (making the carrier the largest in the U.S.), wants to shake up the wireless industry of sorts. How? Require one-year contracts for its new wireless subscribers without raising the subsidized prices of its wireless handsets.

Continue reading Alltel throws a stick at the competition, switches to one-year contracts

Alltel throws a stick at the competition, switches to one-year contracts originally appeared on BloggingStocks on Fri, 05 Jun 2009 13:10:00 EST. Please see our terms for use of feeds.

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Earnings highlights: Starbucks, Kodak, Verizon, Visa, Office Depot, Baidu and more

Trey Thoelcke — Sat, 02 May 2009 09:40:00 EST

Filed under: Earnings Reports, Time Warner (TWX), Pfizer (PFE), Starbucks (SBUX), Motorola (MOT), Exxon Mobil (XOM), Verizon Communications (VZ), Office Depot (ODP), Eastman Kodak (EK), QUALCOMM Inc (QCOM), Dow Chemical (DOW), Burger King Hldgs (BKC), Goodyear Tire and Rubber (GT), MetLife Inc. (MET), Visa Inc. (V)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Baidu Inc. (NASDAQ: BIDU) reported better-than-expected Q1 earnings as revenues surged in the quarter.
Burger King Holdings Inc. (NYSE: BKC) just beat Q3 expectations despite weak same-store sales growth.
Corn Products International Inc. (NYSE: CPO) Q1 results were dragged down by higher corn costs.
Dow Chemical Co. (NYSE: DOW) Q1 earnings sank on falling sales, job cuts and acquisition costs.
Eastman Kodak Co. (NYSE: EK) reported a deeper-than-expected Q1 loss and suspended its dividend.
Energizer Holdings Inc. (NYSE: ENR) posted better-than-expected Q2 earnings but revenue declined.

Continue reading Earnings highlights: Starbucks, Kodak, Verizon, Visa, Office Depot, Baidu and more

Earnings highlights: Starbucks, Kodak, Verizon, Visa, Office Depot, Baidu and more originally appeared on BloggingStocks on Sat, 02 May 2009 09:40:00 EST. Please see our terms for use of feeds.

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Verizon Wireless completes purchase of Alltel

Brian White — Mon, 12 Jan 2009 13:46:00 EST

Filed under: Deals, ALLTEL Corp (AT), Verizon Communications (VZ)

Verizon Wireless, a unit of Verizon Communications Inc. (NYSE: VZ) closed on the $28.1 billion acquisition of wireless rival Alltel Wireless late last week and is now the largest wireless company in the U.S., leapfrogging AT&T, Inc. (NYSE: T). The purchase amount includes $5.9 billion in equity and $22.2 billion in debt from TPG Capital, which had purchased Alltel for $27.5 billion in the spring of 2008.

Although it was a short-term deal that TPG Capital was after (it made some money, after all), Verizon is once again the top dog in U.S. wireless service. For some reason, the industry is insisting on combining all kinds of competitors to leave just a handful of them to serve customers. Will this combination be in the best interest of consumers? It doesn't matter. Like most mergers, it is meant to bring in more revenue and try to stem the losses Verizon Wireless has seen since AT&T became the exclusive distributor for Apple, Inc.'s (NASDAQ: AAPL) enormously successful iPhone.

Verizon's customer base of more than 83 million customers will now be the force to reckon with when newer devices are created by manufacturers and wireless carriers are looked at as release partners. With Verizon and Alltel both using the same technical standard -- unlike the disastrous Sprint and Nextel merger of 2005 -- this new entity is setting itself up from the start to be the pre-eminent wireless company in North America. Let's see if it can remain that way.

Verizon Wireless completes purchase of Alltel originally appeared on BloggingStocks on Mon, 12 Jan 2009 13:46:00 EST. Please see our terms for use of feeds.

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S&P thinks telecom stocks may be poised for a rebound

Eliza Popescu — Mon, 23 Jun 2008 13:52:00 EST

Filed under: Forecasts, Deals, Competitive Strategy, Apple Inc (AAPL), AT and T (T), ALLTEL Corp (AT), Verizon Communications (VZ), Economic Data

During the challenging market conditions over the past year, the telecom sector has felt its fair share of the pain. BusinessWeek brings Standard & Poor's Todd Rosenbluth who suggests that some of these telecommunication stocks could now be good investments for traders as they have a safe dividend.

Despite worries tied to the slowing U.S. economy and increased competition, "we think that some of the concerns are overdone and believe selective stocks are attractively valued," Rosenbluth stated. Rosenbluth also noted that telecom stocks have started showing signs of recovery for the past few weeks, helped by the launch of new handsets and merger and acquisition agreements.

Some of investors' favorite companies are AT&T Co. (NYSE: T) and Citizens Communications Co. (NYSE: CZN). Rosenbluth believes that the launch of Apple (NASDAQ: AAPL)'s new iPhone, 3G iPhone, will stir increased demand for smartphones, helping such companies, while putting pricing pressure on some of their competitors.

Continue reading S&P thinks telecom stocks may be poised for a rebound

S&P thinks telecom stocks may be poised for a rebound originally appeared on BloggingStocks on Mon, 23 Jun 2008 13:52:00 EST. Please see our terms for use of feeds.

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Verizon bought Alltel for $28.1 billion: Is Sprint Nextel next?

Brian White — Mon, 09 Jun 2008 10:45:00 EST

Filed under: Deals, Sprint Nextel Corp (S), Verizon Communications (VZ)

Now that Verizon Wireless has agreed to purchase privately held Alltel from its private equity owners (giving them a small profit and an out), what else is on tap for the soon-to-be largest wireless carrier in the U.S.? Verizon Wireless is chomping at the bit to overtake AT&T Inc. (NYSE: T) as the largest wireless carrier in the U.S., and its acquisition of Alltel will give it an 8 million+ wireless subscriber advantage over Ma Bell.

Although Alltel's buyout by Verizon was expected last year, it's now going to finally happen. Both companies use the same technical wireless standard, so this will be an easy merger. There will be no issues like when Sprint merged with Nextel in 2005 and the two incompatible networks caused an epic failure of those two companies to merge into one. Speaking of Sprint Nextel Corp. (NYSE: S), where does it play into the Verizon-Alltel landscape? Does its WiMAX plans now become derailed with the Verizon announcement, adding more insult to injury about the state of the company?

If anything, look for Verizon to take a strong look at buying Sprint Nextel shortly after its deal with Alltel closes. There would be way more regulatory scrutiny than the Alltel deal (overlapping markets, etc.), but a one-two knockout punch like this would make Verizon Wireless the pre-eminent wireless carrier in the U.S. for a long time. AT&T would have no choice but to plead with Deutsche Telekom to buy T-Mobile USA, the nation's fourth-largest wireless carrier, and one who also shares the same type of technical network as AT&T. Perhaps 2009 will see some of the neatest consolidation in the wireless world yet.

Verizon bought Alltel for $28.1 billion: Is Sprint Nextel next? originally appeared on BloggingStocks on Mon, 09 Jun 2008 10:45:00 EST. Please see our terms for use of feeds.

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Alltel rings up a $28.1 billion deal with Verizon Wireless

Tom Taulli — Thu, 05 Jun 2008 12:33:00 EST

Filed under: Private Equity, Citigroup Inc. (C), Goldman Sachs Group (GS), Verizon Communications (VZ)

Traditionally, strategic buyers have an edge over financial buyers (that is, private equity funds). Essentially, they have the advantage of revenue and cost synergies. However, when debt became dirt cheap over the years, financial buyers had a big advantage and were able to out bid strategic bidders.

Of course, with the credit crunch, this is over. And, yes, strategic buyers are coming to the table - and even talking to the portfolio companies of private equity funds.

Continue reading Alltel rings up a $28.1 billion deal with Verizon Wireless

Alltel rings up a $28.1 billion deal with Verizon Wireless originally appeared on BloggingStocks on Thu, 05 Jun 2008 12:33:00 EST. Please see our terms for use of feeds.

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Alltel Wireless adds one million customers in most recent quarter

Brian White — Fri, 16 May 2008 13:00:00 EST

Filed under: Industry

Alltel Wireless, the private mobile telephone services company that just keeps on grinding along really well, added just over one million new subscribers to its ranks in the company's most recently completed quarter. This is a number often seen by larger competitors like AT&T, Inc. (NYSE: T) and Verizon Wireless, but not by the fifth-largest cellular carrier in the U.S.

It's odd that larger carrier Sprint Nextel Corp. (NYSE: S), which uses the same technology as Alltel, lost over a million customers in its most recent quarter. In fact, it seems the top five cellular carriers in the U.S. are all experiencing growth -- except Sprint Nextel. I mean, is Sprint Nextel's service that bad compared to fellow carrier Alltel? Must be, since customers are leaving in droves. Sprint didn't say whether it was Nextel customers who left in huge numbers or Sprint customers. You see, the merger between the two companies, which is a complete disaster, relied on a fusion of two incompatible technologies that never happened.

Why haven't Sprint and Alltel decided to come together? The companies use the same technology and some areas would have to be divested, similar to areas AT&T had to sell when it merged with Cingular Wireless years ago. Still, Sprint Nextel needs a lifeline and CEO Dan Hesse has one monumental task in front of him. Having a laggard company join with a company that's smaller -- but growing much more rapidly -- would not be a bad thing. That is, if he can convince Alltel's owners that perhaps a merger between the two companies would be a good thing.

Alltel Wireless adds one million customers in most recent quarter originally appeared on BloggingStocks on Fri, 16 May 2008 13:00:00 EST. Please see our terms for use of feeds.

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Sprint Nextel dropped soldiers for excessive wireless roaming

Brian White — Tue, 10 Jul 2007 11:15:00 EST

Filed under: Bad News, Rumors, Sprint Nextel Corp (S)

Sprint Nextel(NYSE:S) is bleeding customers every quarter, is canceling service on other customers that use customer service resources too much, and is now hanging up service on customers who roam off its network excessively. Is this wireless carrier cleaning house or heading down some kind of path of public relations destruction? To make things worse, the roaming customer cancellations were dropped on U.S. soldiers, of all people.

Sprint gives away "free nationwide roaming" to customers of most of its current wireless calling plans, but does not explicitly specify how much customers can roam off its network. Say, for example, you buy Sprint Nextel wireless service since a coverage map shows that there is service where you need it. You arrive at this place (home, office, summer home, military training, etc.) and find out that Sprint's coverage is not quite what is needed for a decent wireless phone conversation. You set your phone to "roam" and off you go, probably using the Verizon Wireless or Alltel (NYSE:AT)national networks since they both use the same technology as Sprint's.

A short time later, you receive a cancellation notice from Sprint. Wha? This is what appears to have happened to about 200 soldiers that recently returned from Iraq and were sent to training at West Point. In addition to these U.S. soldiers that had to roam to get service, other Sprint Nextel customers who apparently use more than 50% of their minutes off of Sprint's network are being dropped as well. Sprint is really giving itself a bad eye here, even though it has said that all these cancellations were "researched heavily." But with no prior notice given to these customers, it is putting its foot in its mouth. Again.

Sprint Nextel dropped soldiers for excessive wireless roaming originally appeared on BloggingStocks on Tue, 10 Jul 2007 11:15:00 EST. Please see our terms for use of feeds.

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Widening credit spreads means arb profits abound

Eric Buscemi — Mon, 02 Jul 2007 13:30:00 EST

Filed under: Tribune Co. (TRB), Clear Channel Commun (CCU), Harrah's Entertainment (HET), Bargain Stocks, First Data (FDC)

The expanding credit spreads between corporate bonds and treasuries, and in particular between junk bonds and treasuries, have also led arbitrage spreads to widen. Deals that will be financed and closed have spreads that warrant investors' attention. There may be some easy money to be made as a result.

Deals worth looking at, according to Barron's , include:

Alltel Corporation (NYSE: AT) trading for $67.80 with take-out price of $71.50-12% annualized rate of return.
Clear Channel Communications (NYSE: CCU) trading for $37.70 with take-out price of $39.20-10% annualized rate of return.
First Data Corporation (NYSE: FDC) is selling for $32.65 and has a take-out price of $34-for an 18% annualized return.
Harrah's Entertainment Inc (NYSE: HET) is selling for $85.25 and has a take offer of $90-14% annualized rate of return.
Tribune Company (NYSE: TRB) is trading at $29.50 with a take-price at $34-30% annualized return.
The most attractive arb play from a return perspective is Tribune but that deal also carries the most risk. Tribune already has a considerable amount of debt and is attempting to add more debt and use the company's ESOP plan to close the deal. In addition, the fundamentals of the newspaper industry continue to remain not very good.

Use the widening arb spreads to make some nice money. Cash available to finance these deals is still aplenty. Lending terms are simply coming back to the planet earth, as sensible lending covenants are re-introduced.

Widening credit spreads means arb profits abound originally appeared on BloggingStocks on Mon, 02 Jul 2007 13:30:00 EST. Please see our terms for use of feeds.

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Analyst downgrades 6-21-07: AT, BWLD, CAKE, HD and ODP

Kevin Shult — Thu, 21 Jun 2007 11:43:00 EST

Filed under: Before the Bell, Analyst Upgrades and Downgrades, Bad News, Home Depot (HD), ALLTEL Corp (AT), Office Depot (ODP), Cheesecake Factory (CAKE)

MOST NOTEWORTHY: Cheesecake Factory (CAKE), Buffalo Wild Wings (BWLD), Alltel (AT), Home Depot (HD) and Nokia (NOK) were today's more noteworthy downgrades:

Cheesecake Factory (NASDAQ: CAKE) was downgraded to Sector Perform from Outperform at CIBC, to Outperform from Strong Buy at Raymond James and to Peer Perform from Outperform at Bear Stearns after the company reduced its second quarter guidance.

Buffalo Wild Wings (NASDAQ: BWLD) was cut to Neutral from Buy at Merriman on valuation.

Lehman downgraded Alltel Corp (NYSE: AT) to Equal Weight from Overweight as the firm doesn't expect a competing bid for the company.

Home Depot (NYSE: HD) was cut to Market Perform from Outperform following yesterday's rally and feels that with the HD sale out of the way, the focus will now turn to Home Depot's ability to grow in the challenging do-it-yourself retail market. Goldman cut Nokia to Neutral from Buy on valuation...

OTHER DOWNGRADES:

JP Morgan cut Headwaters (NYSE: HW) to Underweight from Neutral.

Citigroup downgraded Prudential Financial (NYSE: PRU) to Hold from Buy.

Matrix USA cut Phototronics (NASDAQ: PLAB) to Sell from Hold.

Ferris, Baker downgraded Gladstone Commercial Corp (NASDAQ: GOOD) to Neutral from Buy.

Citigroup removed Office Depot (NYSE: ODP) from its Citi Recommended List.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 6-21-07: AT, BWLD, CAKE, HD and ODP originally appeared on BloggingStocks on Thu, 21 Jun 2007 11:43:00 EST. Please see our terms for use of feeds.

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This week's rumor round-up: Lam Research close to sale?

Eric Buscemi — Fri, 25 May 2007 15:00:00 EST

Filed under: Deals, Rumors, Circuit City Stores (CC)

Heading to Memorial Day, there's certainly no moratorium on the number of talked about potential deals. Receiving a fair amount of attention over the last few days include the companies below. There's more, of course, but hey, it's a three-day weekend.

LAM RESEARCH CORPORATION (NASDAQ: LRCX)

This supplier of tools that makes microchips keeps seeing its stock move up. Up about 13% over the last few months. And it may be more than speculation that it will soon be acquired. Investors looking for a deal are snapping up equity calls, some are then selling them, and keeping both eyes on the stock price. Others are looking out to see which private equity firms or "strategic" buyers come calling.

AMDOCS LIMITED (NYSE: DOX)

As Alltel Corporation (NYSE: AT) goes, so goes Amdocs? Well, not quite. Yes the Alltel sale has pushed Amdocs' stock upward. Some say this maker of software products for telecom services firms may want to continue to go forward by themselves. But that hasn't stopped that list of potential buyers from being passed around. Best bet: International Business Machines Corporation (NYSE: IBM).

CIRCUIT CITY STORES (NYSE: CC)

Again, here we go: Is it going to take a buyout? (Read: private equity buyer.) Or a miracle? (Read: new management) There are profit warnings. (Read: red flags everywhere) The stock is in miserable shape. (Read: cheap) Tough competition. (Read: Wal-Mart Stores Inc (NYSE: WMT)). Think there's a book to be written about all of this? (Read: who'd want to?).

APPLEBEE'S INTERNATIONAL INC (NASDAQ: APPB)

Food for thought. Kangaroo Holdings wants to buy OSI Restaurant Partners Inc (NYSE: OSI). Not surprisingly, Applebee's stock goes up. Are they cooking up a sale price for themselves as they "evaluate" offers? You betcha.

PALM INC (NASDAQ: PALM)

Going, going...almost gone. Even we're beginning to tire of this one. But it never gets old if you like to watch. Now, they're canceling conferences. The CEO is selling shares. The CFO has a bad back. Come on! The latest product review - Palm Treo 755p - is terrible. Market share is going down the tubes. R&D? Forgetaboutit. Sound like a company on the go? Right. Right into someone else's lap. And to think what they once were. Great job all around, everybody.

This week's rumor round-up: Lam Research close to sale? originally appeared on BloggingStocks on Fri, 25 May 2007 15:00:00 EST. Please see our terms for use of feeds.

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Analyst downgrades 5-22-07: AQNT, GSK, LMT, MSFT and SNDK

Kevin Shult — Tue, 22 May 2007 10:51:00 EST

Filed under: Before the Bell, Analyst Reports, Analyst Upgrades and Downgrades, Bad News, Microsoft (MSFT), ALLTEL Corp (AT), Lockheed Martin (LMT), aQuantive Inc (AQNT), SanDisk Corp (SNDK)

MOST NOTEWORTHY: GlaxoSmithKline plc (GSK), SanDisk Corp (SNDK), Lockheed Martin Corp (LMT) and aQuantive, Inc (AQNT) were today's noteworthy downgrades:

Deutsche Bank and ABN Amro cut GlaxoSmithKline (NYSE: GSK) to Hold from Buy following the New England Journal of Medicine warnings from Avandia.

Merrill Lynch cut SanDisk (NASDAQ: SNDK) to Neutral from Buy due to concerns that oversupply in the industry will extend through next quarter.

Cowen downgraded shares of Lockheed Martin (NYSE: LMT) to Neutral from Outperform based on slower 2007-2008 EPS growth and less cash redeployment upside than General Dynamics Corp (GD) and Raytheon Co (RTN).

UBS downgraded aQuantive (NASDAQ: AQNT) to Neutral from Buy and RBC Capital cut shares to Sector Perform from Outperform after the Microsoft (MSFT) acquisition...

OTHER DOWNGRADES:

Piper Jaffray downgraded Cytyc Corp (NASDAQ: CYTC) To Market Perform from Outperform.

NetBank, Inc (NASDAQ: NTBK) was downgraded to Underperform from Market Perform at Friedman Billings.

Merrill Lynch downgraded shares of Aeropostale, Inc (NYSE: ARO) to Neutral from Buy.

AG Edwards downgraded BHP Billiton Ltd (NYSE: BHP) to Hold from Buy.

Gabelli downgraded shares of Alltel Corp (NYSE: AT) to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 5-22-07: AQNT, GSK, LMT, MSFT and SNDK originally appeared on BloggingStocks on Tue, 22 May 2007 10:51:00 EST. Please see our terms for use of feeds.

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Sprint-Nextel up on Alltell buyout

Brent Archer — Mon, 21 May 2007 11:55:00 EST

Filed under: Major Movement, Deals, Good news, Sprint Nextel Corp (S), ALLTEL Corp (AT), Options, Technical Analysis

Sprint Nextel Corp. (NYSE: S) opened at $21.00. So far today the stock has hit a low of $20.99 and a high of $21.67. As of 11:50, S is trading at $21.37, up $0.58 (2.8%).

After hitting a one year high of $22.82 a full year ago, the stock dove to a year low of $15.92 in August. S has been gradually rising over the past several months, establishing some new support around 20. Sprint is benefiting from Alltel's (NYSE: AT) agreement to a $27.5 billion private takeover deal. Recent technical indicators for S have been bullish and deteriorating slightly, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $18 range. S hasn't been below $18 since February and has shown support around $20 recently. This trade could be risky if demand the stagnating phone business worsens even more, but even if that happens, S has been in a slow, steady upward trend the past 10 months.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls a positions in S or AT.

Sprint-Nextel up on Alltell buyout originally appeared on BloggingStocks on Mon, 21 May 2007 11:55:00 EST. Please see our terms for use of feeds.

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Alltel will be more competitive in private hands

Brian White — Mon, 21 May 2007 11:16:00 EST

Filed under: Deals, Competitive Strategy, AT and T (T), Sprint Nextel Corp (S), ALLTEL Corp (AT), Texas Pacific Group, GS Capital Partners

Alltel Wireless will be far more competitive following the $27 billion buyout by divisions of Goldman Sachs Group Inc. (NYSE: GS) and Texas Pacific Group.

How fast will Alltel be able to scale its customer base and compete with the big four wireless companies? Much faster as a private company if you ask me.

Without quarterly numbers to hit, the company can pour capital into becoming what it has the potential to be and at some future time re-enter the market for the payoffs for GS Capital Partners and TPG Group. Until then, we'll all see what Alltel can do to compete with the larger carriers over time. With this buyout probably having been in the works for most of 2007, you can bet a solid plan is already in place.

With 12 million customers. Alltel is the fifth-largest wireless company behind AT&T Inc. (NYSE: T), Verizon Wireless, Sprint Nextel Corp. (NYSE: S) and T-Mobile USA. It owns wireless liceneses giving it coverage area bigger than the larger four carriers, which is a huge attraction for the private equity firms who already are drawn to the red-hot wireless industry.

The upside is great for this deal since people are dropping land line telephones and moving to the wireless and Internet telephony.

Now it's time to execute.

Alltel will be more competitive in private hands originally appeared on BloggingStocks on Mon, 21 May 2007 11:16:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up 5-9-07: Private equity looking at Alltel

Eric Buscemi — Wed, 09 May 2007 09:15:00 EST

Filed under: Newspapers, Magazines, Internet, Intel (INTC), Citigroup Inc. (C), Sony Corp ADR (SNE), ALLTEL Corp (AT), BP p.l.c. ADS (BP)

MAJOR PAPERS:

According to people familiar with the matter, at least three groups of private-equity companies have formed to attempt to purchase wireless carrier Alltel Corporation (NYSE: AT), reported the Wall Street Journal (subscription required).
The Wall Street Journal's "Heard in Asia" column reported that in order for Sony Corporation's (NYSE: SNE) stock to rise when it reports next week, it is going to have to convince investors that its PlayStation unit is showing improvement.
The Financial Times (subscription required) reported that almost half of the senior management at Citigroup Inc's (NYSE: C) consumer operations have quit in the last 18 months, as criticism of CEO Chuck Prince has grown.

OTHER PAPERS:

According to the Telegraph, Royal Dutch Shell (NYSE: RDS.A) and BP plc ADS's (NYSE: BP) Russian joint venture, TNK-BP, are expected to join the auction for the 537-petrol station network belonging to Yukos. The bidding is expected to start at GBP150M.
GlaxoSmithKline plc ADR (NYSE: GSK) has begun to promote Alli, the first weight-loss drug to be approved by the FDA for over-the-counter sale, reported the New York Times.

WEBSITES:

According to DigiTimes.com, citing industry insiders, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is looking to up production of Intel Corporation's (NADSAQ: INTC) 802.11n Wi-Fi chips at 0.13-micron in Q3, a sign of closer collaboration between the two companies.

Newspaper wrap-up 5-9-07: Private equity looking at Alltel originally appeared on BloggingStocks on Wed, 09 May 2007 09:15:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up 5-2-07: Cablevision on the verge of going private

Eric Buscemi — Wed, 02 May 2007 09:15:00 EST

Filed under: Newspapers, Magazines, Sprint Nextel Corp (S), ALLTEL Corp (AT), Gap Inc (GPS), Dow Jones and Co (DJ), Qwest Communications Intl (Q)

MAJOR PAPERS:

Barron's Online's "Weekday Trader" column wrote that the takeover talk in telecom stocks Alltel Corporation (NYSE: AT), Qwest Communications International Inc (NYSE: Q), and Sprint Nextel Corporation (NYSE: S) may be overblown, as the logical acquirers for the companies appear uninterested, according to people familiar with the sector.
The Wall Street Journal reported that Dolan family, founders of Cablevision Systems Corporation (NYSE: CVC), are on the verge of taking the company private in a deal estimated to be worth about $10.5B.
The Wall Street Journal's "Heard on the Street" column discussed Rupert Murdoch's $5B play for Dow Jones and Company (NYSE: DJ), saying the Bancroft family may eventually find it difficult not to take Murdoch's offer.

OTHER PAPERS:

The U.K. Times has learned that the U.S. Department of Justice is in talks to launch a formal inquiry into "alleged bribery and corruption" at BAE Systems (OTC: BAESY).
According to a New York Post exclusive, Gap Inc (NYSE: GPS) is considering sizeable layoffs, to reduce expenses at the struggling retailer.

Newspaper wrap-up 5-2-07: Cablevision on the verge of going private originally appeared on BloggingStocks on Wed, 02 May 2007 09:15:00 EST. Please see our terms for use of feeds.

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This week's rumor round-up: New Century to go bankrupt?

Eric Buscemi — Fri, 09 Mar 2007 15:00:00 EST

Filed under: Rumors, Dell (DELL), ALLTEL Corp (AT), Palm Inc (PALM)

What is up is the theme of this week's merger talk, because there is lots of chatter, but no bold moves. Yet.

NEW CENTURY FINANCIAL CORPORATION (NYSE: NEW)

Down the tubes, and then what? With bankruptcy imminent, what next happens to the nation's second largest sub prime mortgage banker? Shares continue to fall today, recently at $3.18, a 69 cent fall, equal to almost 18%. Just two months ago the share price was over $30. The real estate investment trust isn't getting any help from lenders. Maybe reorganization is just what they need.

PALM INC (NASDAQ: PALM), DELL INC (NASDAQ: DELL)

Or should it be Dell, Palm? Either way, Palm is looking to sell, and Dell is looking to buy. Palm knows Apple Inc's (NASDAQ: AAPL) iPhone can really hit them with a number of body blows, hence, get out while the getting's good, or at least okay, seems to be the Palm plan. For Dell, they're looking at smart phones as a part of their consumer products future. And lord knows they have the cash to buy a Palm. It's a brand with international contacts and a retail distribution network. Let the bidding begin, say at $2B?

NOBLE DRILLING CORP (NYSE: NE)

A noble "no" to an LBO was sent out from high atop the corporate structure several weeks ago, but rumors keep a coming. Yes, they said they'd use their extra dough to buy their own stock, just like they did before, in 2006. And that's what they've been doing. Who knows, maybe there's nothing to it.

CLAIRE'S STORES INC (NYSE: CLE)

Private equity firm Apax seems to be in the lead to take the 3,000 stores-strong Claire's. Get this: Apax is said to be so anxious to get going that it's said they have new management "in waiting." Wow. Claire's has said it's exploring "strategic alternatives", including a sale. Goldman Sachs is helping. Must be serious stuff. By the way, same store sales were up but down recently. Up 1%, but 2.3% was expected. What do you think Apax feeds that management team in waiting, anyway?

ALLTEL CORPORATION (NYSE: AT)

Buy me, please. That's what the nation's fifth largest wireless operator (subscribers) has been saying. AT&T is kicking the tires, but because of antitrust and other issues, it may only be doing just that. Verizon Communications Inc (NYSE: VZ) may have a look-see, as well as private equity firms. Tepid seems to have been the response so far, but that can change quickly. Management says the rumors are nothing new. Is that a bad thing?

This week's rumor round-up: New Century to go bankrupt? originally appeared on BloggingStocks on Fri, 09 Mar 2007 15:00:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up 3-5-07: Alltel looking to sell itself

Eric Buscemi — Mon, 05 Mar 2007 09:00:00 EST

Filed under: Newspapers, Magazines, Internet, Ford Motor (F), General Motors (GM), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), AT and T (T), ALLTEL Corp (AT), Morgan Stanley (MS), Palm Inc (PALM)

MAJOR PAPERS:

The Wall Street Journal (subscription required) reported that Alltel Corporation (NYSE: AT) is stepping up efforts to sell itself. People familiar with the matter said that Alltel has made "overtures" to AT&T Inc (NYSE: T) but that AT&T is skeptical about a potential combination due to antitrust problems, technology-integration issues and Alltel's stock-market capitalization.
According to the Wall Street Journal, citing people familiar with the matter, Palm Inc (NASDAQ: PALM) has hired Morgan Stanley (NYSE: MS) to help explore strategic options, including a potential sale of the company, an investment by private equity or purchase of its own.
The Wall Street Journal reported that former Attorney General John Ashcroft has been hired by opponents of the XM Satellite Radio Holdings Inc (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) deal, claiming that the merger will leave only provider in the market.
The Financial Times (subscription required) reported that General Motors Corporation (NYSE: GM) has announced plans to build a low-priced vehicle, to be built and sold in emerging markets including India, China and Russia.

OTHER PAPERS:

The U.K. Times reported that HSBC Holdings plc (NYSE: HBC), Europe's largest banking group, said it was taking a $10.6B charge against bad loans, mostly in the U.S.
The U.K. Times also reported that Ford Motor Company (NYSE: F) is in exclusive talks with Prodrive, the sports racing company, over a potential GBP450M sale of Aston Martin.
The Telegraph reported that Apax is said to be the frontrunner for Claire's Stores Inc (NYSE: CLE) with a $3B offer, the deadline for final bids is said to be Wednesday.

Newspaper wrap-up 3-5-07: Alltel looking to sell itself originally appeared on BloggingStocks on Mon, 05 Mar 2007 09:00:00 EST. Please see our terms for use of feeds.

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Analyst downgrades 2-23-07: Newmont Mining downgraded to Underperform

Eric Buscemi — Fri, 23 Feb 2007 12:20:00 EST

Filed under: Analyst Reports, Analyst Upgrades and Downgrades, ALLTEL Corp (AT), Newmont Mining (NEM)

MOST NOTEWORTHY:

L-3 Communications Holdings Inc (NYSE: LLL) was downgraded by Bank of America to Neutral from Buy based on valuation, as they see limited upside from current levels. The firm's target for L-3 is $92.
NewMont Mining Corp (NYSE: NEM) was downgraded by RBC Capital Markets to Underperform from Sector Perform based on Newmont's weak production profile and declining financial forecasts. The firm lowered its price target for Newmont to $48 from $52.

OTHER DOWNGRADES:

K Swiss Inc (NASDAQ: KSWS) was downgraded by Susquehanna to Neutral from Positive. The firm does not believe domestic sales will stabilize until 2008 and sees European growth being less robust over the next several quarters.
Alltel Corporation (NYSE: AT) was downgraded at Deutsche Bank to Hold from Buy on valuation. The firm's target for Alltel is $63.

Analyst downgrades 2-23-07: Newmont Mining downgraded to Underperform originally appeared on BloggingStocks on Fri, 23 Feb 2007 12:20:00 EST. Please see our terms for use of feeds.

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