The stage is set for a recovery in certain industries. They've been hit hard the last three years, pounded by a slow economy. But now things are starting to change, and if you believe the worst is over, then these sectors should see good advances in 2011.

Car Companies: They're hiring. Toyota Motors (TM) just announced the re-opening of its Mississippi plant after being dormant for two years. It needs 2,000 workers. GM (GM) is hiring 1,000 engineers and researchers in Michigan over the next two years focused on hybrid and electric cars. Chrysler is looking for 1,000 engineers and others to create small and midsize vehicles in its partnership with Italy's Fiat. Fiat controls Chrysler. Ford is the most healthy of the U.S. producers, having never touched government funds.

Continue reading Comfort Zone Investing: Two Industries Set to Recover in 2011

Comfort Zone Investing: Two Industries Set to Recover in 2011 originally appeared on BloggingStocks on Sat, 01 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

General Motors is coming out of bankruptcy. It wants to be a public company again, raise capital by selling stock. Most likely it will happen before the fourth quarter. Here are some things you might want to consider about the offering.

First, the federal government owns 61% of GM.So you'll want to read the prospectus to find out if your money is going to GM or the government. If the government sells its shares to the public, then all the money raised from those shares won't go to the company. It goes straight to the U.S. Treasury. If the government sells its whole stake, then little of the capital raised will be added to GM's treasury.That probably won't happen. Instead the government will sell part of its holdings and keep some for future benefit. But it may sell all of it. If so, it will severely limit the amount of new funds GM will have to grow.

Continue reading Comfort Zone Investing: GM Comes Out

Comfort Zone Investing: GM Comes Out originally appeared on BloggingStocks on Sat, 22 May 2010 10:30:00 EST. Please see our terms for use of feeds.

Sterlite Industries India Ltd. (NYSE: SLT), which is already the largest copper and zinc producer in India, is getting bigger. That is, the company has agreed to purchase Asarco LLC (based in the U.S.) for about $2.6 billion. With the deal, Sterlite will get an estimated five million tons of copper reserves.

Basically, it's easier to mine for copper on Wall Street (with acquisitions) instead of digging into the ground. As a result, there were four suitors for Asarco (which, by the way, is in bankruptcy and is dealing with complex environmental liabilities).

Furthermore, with the surge in copper prices, there is definitely enough firepower to get deals done -- at high valuations.

This deal also points to another interesting theme: the aggressive M&A of Indian firms. For example, Tata Motors recently purchased Jaguar and Land Rover from Ford (NYSE: F). There was also Tata Steel's $12 billion acquisition of Corus Group.

And, it's a good bet we'll see a lot more deal-making. Simply put, India needs to snag more natural resources to facilitate its torrid growth rate.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

India flexes its M&A muscles originally appeared on BloggingStocks on Sun, 01 Jun 2008 09:40:00 EST. Please see our terms for use of feeds.

After sale of Jaguar and Land Rover, is Ford worth a look? originally appeared on BloggingStocks on Tue, 25 Mar 2008 16:25:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Northrop Grumman Corporation (NYSE: NOC) won a $40B contract to turn Airbus jets into "flying gas stations" for U.S. military aircrafts, the Wall Street Journal reported, breaking The Boeing Company's (NYSE: BA) lock on the market.
• Royal Bank of Canada (NYSE: RY) is expected to launch the first covered bond from the country next week, the Financial Times reported. The bank is targeting a benchmark-sized issue worth $1.4B-$4.2B.
• The Financial Times also reported that Indian conglomerate Tata has concluded an agreement with Virgin Mobile USA Inc (NYSE: VM) to launch a cellular phone brand in India. The brand, called Virgin Mobile in India, would target young Indians under a franchise agreement with Tata Teleservices.

• Bloomberg reported that former JP Morgan Chase & Co (NYSE: JPM) Vice Chairman Donald Layton is expected to be named E*Trade Financial Corporation's (NASDAQ: ETFC) new CEO. In an interview, Layton said he may consider a sale of the troubled online brokerage if it "made sense" for shareholders.

Newspaper wrap-up: E*Trade expected to name Layton as its CEO originally appeared on BloggingStocks on Mon, 03 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

Ford (NYSE: F) will probably sell its Jaguar and Rover units to India's Tata Motors (NYSE: TTM). But the U.S. car company wants to go beyond that and build its own presence in the huge country. Ford will put up $500 million to increase its manufacturing operations in India between now and 2010. It will also develop a small car for sale in the country.

"This new investment highlights the significance of India's role in our continued expansion and overall strategy for the Asia-Pacific and Africa region," John Parker, executive vice president of Ford for Asia-Pacific and Africa, told Reuters.

While India's car market is growing fast, Ford may find that it is a little late to a very competitive game. Large rivals from Europe, GM (NYSE: GM), and Toyota (NYSE: TM) all want a piece of the same market, and India has its own car companies protective of their turf.

GM announced that it hopes to have 75% of its sales overseas in 10 years. Ford probably has similar goals because the U.S. car market is both competitive and slow-growing. But that means that a number of companies are all trying to get share in the same markets -- India, China, Russia, and South America. Ford would not seem to have any big advantage in this race, and its fairly weak balance sheet is not likely to help it expand.

Douglas A. McIntyre is an editor at 247wallst.com.

Ford plans push into India originally appeared on BloggingStocks on Tue, 08 Jan 2008 08:38:00 EST. Please see our terms for use of feeds.

Ford spent a combined $5.2 billion for Jaguar and and Land Rover when it first took over the units.

Continue reading Ford (F) names Tata as top bidder for Jaguar

Ford (F) names Tata as top bidder for Jaguar originally appeared on BloggingStocks on Thu, 03 Jan 2008 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: TTWO, DRI, AMTD, BSC, GM ...

Before the bell: TTWO, DRI, AMTD, BSC, GM ... originally appeared on BloggingStocks on Wed, 19 Dec 2007 08:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal's "Heard on the Street" reported that analysts believe investors should take a look at some Indian pharmaceutical stocks, including two of the subcontinent's biggest generics makers, Dr. Reddy's Laboratories Limited (NYSE: RDY) and Cipla Ltd.
• According to the Wall Street Journal's "Heard in Asia," shares of India's three largest tech and outsourcing companies by sales, Infosys Technologies Limited (NASDAQ: INFY), Tata Consultancy Services and Wipro Limited (NYSE: WIT), may be worth a look by investors despite some near-term volatility.

• David Letterman is seeking his own deal with the Writers Guild of America which would allow his show to return to air on CBS Corporation's (NYSE: CBS) CBS station in early January even if the strike is continuing, the New York Times reported.
• According to the UK Times, Ford Motor Company (NYSE: F) is expected to name Tata as the preferred bidder for its Jaguar and Land Rover units.

Newspaper wrap-up: Time to take a look at Indian pharmaceuticals? originally appeared on BloggingStocks on Mon, 17 Dec 2007 08:00:00 EST. Please see our terms for use of feeds.

Finding a buyer for Jaguar and Land Rover has taken a long time. But, it appears that Indian car company Tata now has the poll position to buy them from Ford Motor Co. (NYSE: F). The price will be about $2 billion. According to The Sunday Times, "sources close to the negotiations say an announcement could come in the next fortnight, bringing to an end a six-month auction."

Even with its need to fund a new health care pool for the UAW, it is not clear that the move is a good idea.

Ford is being hurt by a falling market share in the U.S., and the total car market here is also falling. Higher fuel prices and a damaged housing market are likely to take a further toll on the auto industry in 2008.

In Jaguar and Rover, Ford has two premium, global brands. As a strong middle class emerges in China and Russia, these are the kind of cars that are likely to sell well. Ford only has modest operations in these countries.

Selling the two brands may end up being very short-sighted.

Douglas A. McIntyre is an editor at 247wallst.com.

Tata becomes frontrunner to buy Jag and Rover from Ford (F) originally appeared on BloggingStocks on Sun, 16 Dec 2007 16:10:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Countrywide Financial Corporation (NYSE: CFC) announced another 900 job cuts as the company slashes costs in the face of a drop in lending volumes and rising defaults, The Wall Street Journal reported.
• Barron's Online's "Inside Scoop" section reported that CVS Caremark Corporation (NYSE: CVS) chairman Edwin Crawford sold 120K shares worth $45.4M Friday and Tuesday after exercising the same number of options for $2.8M.

• Italian carmaker Fiat (OTC: FIATY) is negotiating with India's Tata Motors Limited (NYSE: TTM) on a joint bid for Ford Motor Company's (NYSE: F) Jaguar and Land Rover divisions, reported the Telegraph.
• British mobile telecom company Vodafone Group (NYSE: VOD) has received a $2B tax bill from the Indian government, reported the U.K. Times.
• The Economic Times reported, citing a source close to the development, that Ranbaxy has joined the bidding on Bradley Pharmaceuticals Inc (NYSE: BDY) by placing a preliminary non-binding bid on the company.

Newspaper wrap-up: Countrywide (CFC) cuts more jobs originally appeared on BloggingStocks on Thu, 06 Sep 2007 08:45:00 EST. Please see our terms for use of feeds.

Continue reading Ford (F) expands Detroit's foreign footprint

Ford (F) expands Detroit's foreign footprint originally appeared on BloggingStocks on Wed, 29 Aug 2007 17:49:00 EST. Please see our terms for use of feeds.

Continue reading Ford, a symbol of America's failing auto industry

Ford, a symbol of America's failing auto industry originally appeared on BloggingStocks on Wed, 18 Jul 2007 15:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that XM Satellite Radio Holdings Inc (NASDAQ: XMSR) is being sued by members of the National Music Publishers Association over XM receivers with the XM+MP3 service, which allows listeners to store songs they hear on XM onto their players. The suit is charging XM with "unlawfully reproducing and distributing copyrighted music without paying appropriate royalties."
• The Wall Street Journal speculated that the most plausible course of action for Cadbury Schweppes ADS (NYSE: CSG) confectionery operations would be a merger with Hershey Company (NYSE: HSY), which the article said would be "tasty for investors."
• General Electric Company (NYSE: GE) said it would launch a $1.14B takeover bid for leasing firm Sanyo Electric Credit, marking a potential windfall for major shareholder Goldman Sachs Group Inc (NYSE: GS). Sanyo Credit agreed to the offer which will run from Monday to May 9, reported the Financial Times.

• According to India's Economic Times, Google Inc (NASDAQ: GOOG) is open to acquiring Indian technology companies with "interesting technologies." The company already said it would invest in two Indian early stage venture capital funds last month.
• The Economic Times also reported that Tata Group is in talks about buying a stake in Deutsche Telekom ADS's (NYSE: DT) business unit, T-Systems, citing a report from German business weekly Focus Online.

Newspaper wrap-up 3-23-07: XM hit with lawsuit originally appeared on BloggingStocks on Fri, 23 Mar 2007 09:33:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• A full page advertisement by CVS Corporation (NYSE: CVS) in this morning's Wall Street Journal (subscription required) warned Caremark Rx Inc (NYSE: CMX) shareholders that their "[investments] would be at risk" under Express Scripts' (NASDAQ: ESRX) proposal and recommended the CVS/Caremark merger. Also in the Journal:
• Investors at Clear Channel Communications Inc (NYSE: CCU) believe they are being short changed and have started a showdown with private equity buyers.
• The NYSE Group Inc (NYSE: NYX) and the Tokyo Stock Exchange are expected to announce an alliance.
• US Airways Group (NYSE: LCC) may increase its offer for Delta Air Lines (OTC: DALRQ).
• The Financial Times (subscription required) featured articles on News Corporation (NYSE: NWS) and Corus Group ADS (NYSE: CGA).
• News Corp's MySpace is close to launching local versions in Canada and Mexico.
• Tata Steel is expected to top CSN's offer for Corus Group at a takeover auction on Tuesday.

• USA Today wrote that two years ago, Verizon Communications' (NYSE: VZ) Verizon Wireless turned down the opportunity to be the exclusive distributor of the iPhone in the U.S. because of Apple Inc's (NASDAQ: AAPL) financial terms and other demands.
• Investor's Business Daily's "New America" column mentioned Universal Stainless & Alloy Products (NASDAQ: USAP) positively, writing that Universal is looking to expand abraod with little foreign competition. The specialty steel products company focuses on the aerospace and power industries and named Boeing Company (NYSE: BA) as a key customer.

Newspaper wrap-up 1-29-07: Verizon passed on iPhone originally appeared on BloggingStocks on Mon, 29 Jan 2007 09:28:00 EST. Please see our terms for use of feeds.