While the U.S. exchanges have a diverse market for mining and resource stocks, the fact is that there are large opportunities in foreign markets. In fact, the London Stock Exchange (LSE) and the Canadian TMX Group have agreed to merge, which would create an enormous market for commodities listings.

It is an all-stock deal, with the LSE holders getting roughly 55% of the equity. The exchange's CEO, Xavier Rolet, will also lead the new organization.

Continue reading London, Toronto Exchanges to Create a Mining Powerhouse

London, Toronto Exchanges to Create a Mining Powerhouse originally appeared on BloggingStocks on Wed, 09 Feb 2011 11:10:00 EST. Please see our terms for use of feeds.

British Airways (LSE: BA) lost ₤375 million ($595 million) in the 12 months ending March 31, 2009. This is down from a profit of ₤712 million ($1.1 billion) the year before. The airline, which was privatized in 1987, has never sustained a loss this great. As a result, British Airways will not pay any dividends to shareholders -- or bonuses to the management team.

Weaker demand and spikes in fuel costs are cited as the reasons for the year-over-year record loss. Revenue was up 2.9% (₤8.99 billion) year-over-year, but this was not enough to offset a 45% increase in fuel costs -- to ₤2.97 billion. Demand problems struck in the fourth quarter, with revenue dropping 8.4% to ₤1.9 billion.

Its previous record loss was ₤200 million for the year ending in 2002.

British Airways: worst loss in 20+ years originally appeared on BloggingStocks on Mon, 25 May 2009 18:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• ThinkPanmure believes Nova BioSource's (AMEX:NBF) biodiesal production process is economically superior to traditional processes but higher feedstock costs will make scaling difficult. Shares were initiated with an Accumulate rating.
  
• ThinkPanmure also initiated Aventine Renewable (NYSE:AVR) with an Accumulate rating and $8 target. The firm does not expect share upside until margin visibility improves, which will not occur until next year's corn crop materializes in early 2009.
  
• Lehman initiated the REIT sector with a Neutral rating; the firm started AMB Property (NYSE:AMB) and Kimco Realty (NYSE:KIM) with Overweight ratings and CBL & Associates (CBL) with an Underweight rating.

• JP Morgan initiated BLADEX (NYSE:BLX) and Banco Santander (NYSE:SAN) with Overweight ratings.
• KeyBanc assumed Capital Lease Funding (NYSE:LSE) with a Hold rating.

Analyst initiations: NBF, AVR and the REIT sector originally appeared on BloggingStocks on Thu, 24 Jul 2008 11:22:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Chrysler LLC is discussing shuttering or selling Mopar, its auto parts unit, and Chrysler Transport, the overseer of supplies to Chrysler's plants, reported the Wall Street Journal (subscription required).
• Tomorrow, troubled condo developer WCI Communities Inc (NYSE: WCI) is expected to vote Carl Icahn and two of his representatives to the company's board, reported the Wall Street Journal.
• Barron's Online's (subscription required) "Inside Scoop" column reported that Pep Boys (NYSE: PBY) director James Mitarotonda, a director since August 2006, purchased over $1.2M in stock through his equity fund Barington Companies Equity Partners on Aug. 23 and 24 according to SEC data.
• The sale of a 20% strategic stake in Semiconductor Manufacturing International Corporation (NYSE: SMI), China's biggest chipmaker, has stalled, as the company's board is reportedly undecided about how to proceed, reported the Financial Times (subscription required).

• Nasdaq Stock Market Inc (NASDAQ: NDAQ) has agreed to seek the approval of London Stock Exchange CEO Clara Furse before it sells its minority stake in the British exchange to any single buyer, reported the Independent.

Newspaper wrap-up: Carl Icahn expected to join WCI board originally appeared on BloggingStocks on Wed, 29 Aug 2007 09:00:00 EST. Please see our terms for use of feeds.

What kind of money will the Nasdaq be able to receive for the LSE? Recently, the LSE's market value on the London Stock Exchange was $5.2 billion. Assuming Nasdaq sells its 31% block for a 20% discount, the Nasdaq would stand to get nearly $1.3 billion for the stake. Unfortunately, Nasdaq paid $1.33 billion for this stake originally so, unless the Nasdaq can receive the full value of its stake (which is unlikely), it stands to lose money on the deal. According to the company, this sale should produce about 35 cents in EPS next year.

Nasdaq would use this money to buy back stock, retire debt, and increase its offer for the OMX. According to the Bloomberg article, about $1 billion of the proceeds will be used to improve the financial condition of the company (via share buybacks and retiring debt) -- a move that should improve EPS on two fronts.

Continue reading Nasdaq (NDAQ) considering sale of LSE stake

Nasdaq (NDAQ) considering sale of LSE stake originally appeared on BloggingStocks on Mon, 20 Aug 2007 12:22:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Mohamed Abdulmohsin Al Kharafi & Sons WLL, a Kuwaiti-based firm led by the Al Kharafi family, recently bought 1.25 million shares of Krispy Kreme Doughnuts Inc (NYSE: KKD) and now owns 7.37, or 11.4% of Krispy Kreme, according to Barron's Online's "Inside Scoop" section.
• The board of Dow Jones & Company Inc (NYSE: DJ) is taking over talks on the company's future, reported the Wall Street Journal, which added in a different article that Brad Greenspan, the former CEO of MySpace says he will seek a non-controlling stake in Dow Jones through a $60-per-share Dutch auction.
• The Wall Street Journal reported that the London Exchange is discussing a possible merger with Italian stock exchange operator Borsa Italiana.

• The Telegraph reported that state-run Russian gas company Gazprom (OTC: OGZPY) wants to nix an Exxon Mobil Corporation (NYSE: XOM)-led project to supply Russian gas to China.
• The Telegraph also reported that Vodafone Group plc (NYSE:VOD) will have to pay about $900 million to avoid having its stake in Verizon Wireless reduced by 1%, as joint venture partner Verizon Communications Inc (NYSE: VZ) has the right to increase its share to 56% from 55% if Vodafone does not pay the additional money.

Newspaper wrap-up 6-21-07: More Dow Jones headlines originally appeared on BloggingStocks on Thu, 21 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

LSE and NASDAQ: Why can't we all just get along? originally appeared on BloggingStocks on Thu, 25 Jan 2007 12:36:00 EST. Please see our terms for use of feeds.

Continue reading Merger mania: is it catching?

Merger mania: is it catching? originally appeared on BloggingStocks on Mon, 20 Nov 2006 13:38:00 EST. Please see our terms for use of feeds.