BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[The resilience of strategic deals]]>http://www.bloggingstocks.com/2008/07/14/the-resilience-of-trategic-deals/http://www.bloggingstocks.com/2008/07/14/the-resilience-of-trategic-deals/http://www.bloggingstocks.com/2008/07/14/the-resilience-of-trategic-deals/#commentsFiled under: , , , ,

The credit crunch is not going away, and as a result, there has been a sharp fall-off in leveraged buyouts (LBOs). Basically, only relatively small LBOs -- between $1 billion to $2 billion -- are getting done.

But there is a bright spot: strategic acquisitions. If anything, we are seeing a variety of mega deals in this category. A survey from Dealogic shows that - as of June 25 - there were $597 billion in strategic M&A transactions, only 2% down from last year's total.

Some of the notable deals include: InBev's $49.9 billion play for Anheuser-Busch Cos. (NYSE: BUD), Mars' $23 billion deal for Wm. Wrigley Jr. Co. (NYSE: WWY) and Dow Chemical Co's (NYSE: DOW) $18.8 billion cash purchase of Rohm & Haas Co. (NYSE: ROH). The last two have involved financing from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A).

Why the resilience with strategic deals? Well, there are several key reasons.

Continue reading The resilience of strategic deals

The resilience of strategic deals originally appeared on BloggingStocks on Mon, 14 Jul 2008 14:06:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>brk.abuddowinthenewsrohStrategic MAStrategicMawwyMon, 14 Jul 2008 14:06:00 EST<![CDATA[Cramer on BloggingStocks: Dow Chemical shakes things up]]>http://www.bloggingstocks.com/2008/07/10/cramer-on-bloggingstocks-dow-chemical-shakes-things-up/http://www.bloggingstocks.com/2008/07/10/cramer-on-bloggingstocks-dow-chemical-shakes-things-up/http://www.bloggingstocks.com/2008/07/10/cramer-on-bloggingstocks-dow-chemical-shakes-things-up/#commentsFiled under: , , , ,

TheStreet.com's Jim Cramer says its stunning buy of Rohm & Haas will get people thinking about an energy top.

Just when you thought it was safe to short anything, particularly anything with any commodity exposure, Dow Chemical (NYSE: DOW) (Cramer's Take) comes along and inexplicably pays a gigantic amount of money, $78 in cash, for Rohm & Haas (NYSE: ROH) (Cramer's Take)? My first thought was that it must be a joke. That is inconceivable. A hoax. Something perpetrated by frustrated longs to spook the shorts.

I mean, a chemical company? Two chemical companies? Ground Zero for slowing economic activity and raw costs? People unsure if Dow could even pay its nearly 5% yield? I mean, even last night on my show, I made fun of the idea that people are confusing Becton Dickinson (NYSE: BDX) (Cramer's Take), a medical supply company, with a chemical company because it uses resin.

Amazing.

Continue reading Cramer on BloggingStocks: Dow Chemical shakes things up

Cramer on BloggingStocks: Dow Chemical shakes things up originally appeared on BloggingStocks on Thu, 10 Jul 2008 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bdxbecton dickensonBectonDickensondowdow chemicalDowChemicalenergyfeaturedjim cramerJimCramerrohrohm and haasRohmAndHaaswarren buffettWarrenBuffettwrigleywwyThu, 10 Jul 2008 08:30:00 EST<![CDATA[Cramer on BloggingStocks: The path ahead is down ]]>http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/#commentsFiled under: , , , , , , , , , , ,

TheStreet.com's Jim Cramer says with few exceptions, the landscape is littered with corpses.

Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it.

Are you going to argue with any of that? Do you have a case against it? What's the counter? Takeovers? We've had a couple: Anheuser-Busch (NYSE: BUD) (Cramer's Take), Wrigley (NYSE: WWY) (Cramer's Take). Good if you owned them.

Lower rates? Can the Fed help? We assume the Fed is done. The odds favor higher rates. Bank turnarounds? How, with short-rates going up? With housing prices going down?

Can oil go down? Only with a worldwide crash, and with a worldwide crash, why would we come back at 10,000?

Can the consumer get more liquid? How? Unemployment's going higher. Wages won't go up in that environment.

That's the environment. It's pretty bulletproof when it comes to its logic.

Continue reading Cramer on BloggingStocks: The path ahead is down

Cramer on BloggingStocks: The path ahead is down originally appeared on BloggingStocks on Fri, 27 Jun 2008 09:19:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacblkbudccfcffeaturedgmjim cramerJimCramermerwbwmwwyFri, 27 Jun 2008 09:19:00 EST<![CDATA[Can Hershey market its way out of trouble?]]>http://www.bloggingstocks.com/2008/06/18/can-hershey-market-its-way-out-of-trouble/http://www.bloggingstocks.com/2008/06/18/can-hershey-market-its-way-out-of-trouble/http://www.bloggingstocks.com/2008/06/18/can-hershey-market-its-way-out-of-trouble/#commentsFiled under: , , ,

Hershey (NYSE: HSY) is having growth problems. Not only is it tough just navigating this high-inflationary period, but it's difficult keeping up with the competition. Consumers have a lot of candy choices, and even though Hershey is a big brand name in confections, it thinks it can do better in the marketing department. According to this Wall Street Journal (subscription required) piece, Hershey intends on implementing a 20% increase in spending for promotions.

This double-digit jump in marketing is a smart move, but it won't be easy to digest. With the aforementioned inflationary pressures on the rise, Hershey is going to be sufficiently challenged to push growth while balancing the upward trends in input costs. But is there really a choice here? When you have a super brand like Hershey running into trouble, the thing you need to do is get out there and prop up the inherent equity of the product portfolio.

Yet, there's a bit of a conundrum here, I think. Hershey needs to get people to buy its delicious candies (I'm certainly a fan of the awesome Reese's Peanut Butter Cup). Which demographic loves sweets? Younger kids. They would have represented a great group for growth opportunities, but Hershey has to be careful about marketing too much to this demo since the country has, rightly so, been focusing on healthy alternatives to fatty foods. Even though Hershey has been trying to make some of its portfolio healthier, the flagship brands will always be, one assumes, sugary and full of empty calories. In fact, Hershey is more than aware of this issue, as this corporate link demonstrates.

Continue reading Can Hershey market its way out of trouble?

Can Hershey market its way out of trouble? originally appeared on BloggingStocks on Wed, 18 Jun 2008 09:09:00 EST. Please see our terms for use of feeds.

Read | Read | Permalink | Email this | Comments]]>candiescandyconfectionsfeaturedHersheyHSYmarketingMarsreeses peanut butter cupReesesPeanutButterCupWrigleyWWYWed, 18 Jun 2008 09:09:00 EST<![CDATA[Warren Buffett finds opportunities in... Germany?]]>http://www.bloggingstocks.com/2008/05/19/warren-buffett-finds-opportunities-in-germany/http://www.bloggingstocks.com/2008/05/19/warren-buffett-finds-opportunities-in-germany/http://www.bloggingstocks.com/2008/05/19/warren-buffett-finds-opportunities-in-germany/#commentsFiled under:

Across Germany, there are many large family-owned businesses some of which go back several hundred years.

So, with more than $35 billion in his war chest, Berkshire Hathaway's (NYSE: BRK-A) Warren Buffett wants to buy some of them.

In fact, this week he's on a tour of Germany - as well as other European countries -- to let people know that he's ready for deal making.

Of course, in the United States, Buffett has been successful in buying up family-owned businesses. For example, he has recently helped with the purchase of Wrigley (NYSE: WWY).

But will Germany warm up to him?

Perhaps so. After all, Buffett allows managers to remain independent. Plus, Germany has many traditional businesses, such as in consumer products and manufacturing.

Something else: Timing is important. After World War II, Germany had to rebuild its industrial infrastructure. And, no doubt, the owners of these businesses must now deal with the complex issues of succession.

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.

Warren Buffett finds opportunities in... Germany? originally appeared on BloggingStocks on Mon, 19 May 2008 17:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BrK-aBRK.AGermanyinthenewsWarren BuffettWarrenBuffettwwyMon, 19 May 2008 17:00:00 EST<![CDATA[Cramer on BloggingStocks: Heinz, P&G overcome rising costs ]]>http://www.bloggingstocks.com/2008/05/01/cramer-on-bloggingstocks-heinz-pandg-overcome-rising-costs/http://www.bloggingstocks.com/2008/05/01/cramer-on-bloggingstocks-heinz-pandg-overcome-rising-costs/http://www.bloggingstocks.com/2008/05/01/cramer-on-bloggingstocks-heinz-pandg-overcome-rising-costs/#commentsFiled under: , , , ,

TheStreet.com's Jim Cramer says they have successfully increased price, and their stocks have room to run.

It's tough not to be a Pollyanna after talking to Bill Johnson, the CEO of Heinz (NYSE: HNZ) (Cramer's Take), and after reading the Procter & Gamble (NYSE: PG) (Cramer's Take) quarterly transcript. Both of these companies have had to deal with hundreds and hundreds of millions of dollars of raw cost increases, and both have not only come through with flying colors but are more profitable than I bet even they thought they could be.

PG is amazing. Almost every business was up much more than people thought possible, with divisions like razors and hair care (shampoo) so strong that you would think that suddenly a large part of the populace has decided to start shaving and shampooing for the first time.

Innovations, like the Fusion blade, have produced remarkable returns in a short time, as Fusion is yet another billion-dollar brand that didn't exist a couple of years ago.

Continue reading Cramer on BloggingStocks: Heinz, P&G overcome rising costs

Cramer on BloggingStocks: Heinz, P&G overcome rising costs originally appeared on BloggingStocks on Thu, 01 May 2008 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredheinzhnzjim cramerJimCramerpgprocter and gambleProcterAndGamblewrigleywwyThu, 01 May 2008 08:40:00 EST<![CDATA[Before the bell: Street awaits Fed (V, DB, GM)]]>http://www.bloggingstocks.com/2008/04/29/before-the-bell-street-awaits-fed-v-db-gm/http://www.bloggingstocks.com/2008/04/29/before-the-bell-street-awaits-fed-v-db-gm/http://www.bloggingstocks.com/2008/04/29/before-the-bell-street-awaits-fed-v-db-gm/#commentsFiled under: , , , , , , , , , ,

Stocks futures were lower early Tuesday morning ahead of the Federal Reserve Open Committee two-day meeting set to start today. On Wednesday, Fed chairman Bernanke will announce the policy decided, and while most investors expect a quarter point rate cut, they also expect the Fed to announce a pause in the cuts following some inflationary pressures.

On Monday, stocks finished the day little change ahead of the Fed meeting and despite some big deal news involving candy maker Mars and Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) buying chewing gum maker Wrigley (NYSE: WWY) for some $22 billion. Also, Kirk Kerkorian's Tracinda Corp. announced its intention to purchase 20 million of Ford (NYSE: F)'s shares at $8.50 per share. With that, the Dow industrials ended the day down 20 points, or 0.16%, the S&P 500 fell 1 point, or 0.11%, while the Nasdaq rose 1 point, or 0.06%.

Not many economic releases today. Still, already RealtyTrac reported that foreclosures soared 112% in the first quarter, compared to a year earlier. And still in the housing sector that doesn't seem to be able to find a bottom yet, before the bell, the S&P/Case-Shiller home price index is due for release.
Also today at 10 a.m. EDT, April consumer confidence index will be reported and economists are expecting the index will slide from the previous month. With higher food and energy prices, along with the troubles in the housing sector and the increasing troubles in the labor market, this is far from surprising.

Continue reading Before the bell: Street awaits Fed (V, DB, GM)

Before the bell: Street awaits Fed (V, DB, GM) originally appeared on BloggingStocks on Tue, 29 Apr 2008 07:43:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>brk.adbffeaturedgmvwwyTue, 29 Apr 2008 07:43:00 EST<![CDATA[Will Wrigley deal push Hershey into the arms of Cadbury?]]>http://www.bloggingstocks.com/2008/04/28/will-wrigley-deal-push-hershey-into-the-arms-of-cadbury/http://www.bloggingstocks.com/2008/04/28/will-wrigley-deal-push-hershey-into-the-arms-of-cadbury/http://www.bloggingstocks.com/2008/04/28/will-wrigley-deal-push-hershey-into-the-arms-of-cadbury/#commentsFiled under: , , ,

Shares of Hershey Co. (NYSE: HSY) have jumped more than 6% on the news of the $23 billion takeover of Wm. J. Wrigley Co. (NYSE: WWY) by Mars Inc. and Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) as investors bet that the maker of the eponymous chocolate bar won't stay independent for long.

Hershey, though, is a basket case thanks to soaring commodity costs and hopefully the growing interest in healthier eating. That will heighten the pressure on Hershey management to do a deal with Cadbury Schweppes Plc. or find another sugar daddy (pun intended).

The case for a merger between Cadbury and Hershey are pretty compelling as Reuters notes.

"The deal would have clear strategic logic, as Cadbury, the world's biggest confectionery group, lacks presence in the U.S. chocolate market, while Hershey is looking to expand overseas," according to the news service.

During the first quarter earnings conference call, Chief Executive David West sounded upbeat, saying the company was "making progress, while it is slower than we would like, we do see the initial signs of improving marketplace trends." He has high hopes for new products such as the Hershey Bliss. Investors, though, may not be patient.

The Hershey Trust Co., the chocolate company's largest shareholder, has resisted buyout offers in the past from Wrigley and has vowed to keep the company independent. You have to figure that the trust's board will change its tune at the right price.

Will Wrigley deal push Hershey into the arms of Cadbury? originally appeared on BloggingStocks on Mon, 28 Apr 2008 12:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>berkshire hathawayBerkshireHathawaybrk.acadburycadbury schweppesCadburySchweppesChocolatefeaturedhersheyHSYwrigleywwyMon, 28 Apr 2008 12:12:00 EST<![CDATA[Buffett chews on a mega deal]]>http://www.bloggingstocks.com/2008/04/28/buffett-chews-on-a-mega-deal/http://www.bloggingstocks.com/2008/04/28/buffett-chews-on-a-mega-deal/http://www.bloggingstocks.com/2008/04/28/buffett-chews-on-a-mega-deal/#commentsFiled under: , ,

On CNBC today, Warren Buffett talked about politics, foreign currency - and oh, his financing of Mars's $23 billion deal for Wrigley (NYSE: WWY). He likes the deal for a variety of core reasons: a sustainable long-term business, strong management and the fact that the business is something that's easy to understand (chewing gum is fairly basic, right?)

Yes, this is vintage Buffett.

As usual, the deal started with a phone call to the oracle of Omaha, and he wasted little time in getting things moving.

Wrigley is the largest maker of gum and Mars is a large maker of candies, with Snickers, M&Ms and so on in its arsenal of products. In all likelihood, this deal will spur further M&A activity in the global sector. Such deals will help companies deal with spiking commodities' prices as well as the difficulties in creating new brands.

What's more, both Wrigley and Mars are family dynasties. The former got its start in 1891 and the latter was launched in 1911. Basically, for such firms to link up, it's important that the principals understand the complexities of family dynamics. And, for the most part, Buffett seems to understand such things. In other words, he is a value-added investor who takes the long view. More importantly, he has a war chest of over $40 billion. So as time goes by - and more family businesses look to consolidate -- I'm sure Buffett will get more phone calls.

Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and midsize businesses.

Buffett chews on a mega deal originally appeared on BloggingStocks on Mon, 28 Apr 2008 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBerkshireHathawaybrk.afeaturedMarsWarren BuffettWarrenBuffettwrigleywwyMon, 28 Apr 2008 11:00:00 EST<![CDATA[Option Update: Hershey volatility & share price at the low end of range]]>http://www.bloggingstocks.com/2008/04/28/option-update-hershey-volatility-and-share-price-at-the-low-end-o/http://www.bloggingstocks.com/2008/04/28/option-update-hershey-volatility-and-share-price-at-the-low-end-o/http://www.bloggingstocks.com/2008/04/28/option-update-hershey-volatility-and-share-price-at-the-low-end-o/#commentsFiled under: , ,

Hershey (NYSE: HSY) has a market cap of $7.9 billion with long term debt of $1.5 billion.

HSY reported Q1 consolidated net sales of $1.6 billion on April 24. The Hershey Trust Co. holds the largest stake in HSY.

The WSJ reported Mars and Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) were close to a pact to acquire WM. Wrigley Jr.Co (NYSE: WWY) for more than $22 billion according to people familiar with the situation.

HSY May option implied volatility of 25 is below its 26-week average of 27 according to Track Data, suggesting slightly less price uncertainty.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Hershey volatility & share price at the low end of range originally appeared on BloggingStocks on Mon, 28 Apr 2008 09:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>brk.abrk.bBuffetts Berkshire HathawayBuffettsBerkshireHathawayhersheyhsyinthenewsoption implied volatilityOptionImpliedVolatilitywwyMon, 28 Apr 2008 09:50:00 EST<![CDATA[Option Update: Wrigley volatility flat into WSJ report of Mars-Buffett deal]]>http://www.bloggingstocks.com/2008/04/28/option-update-wrigley-volatility-flat-into-wsj-report-of-mars-b/http://www.bloggingstocks.com/2008/04/28/option-update-wrigley-volatility-flat-into-wsj-report-of-mars-b/http://www.bloggingstocks.com/2008/04/28/option-update-wrigley-volatility-flat-into-wsj-report-of-mars-b/#commentsFiled under: , , ,

Mars Inc. and Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) were close to a pact to acquire WM. Wrigley Jr.Co (NYSE: WWY) for more than $22 billion according to people familiar with the situation at The Wall Street Journal.

WWY over all option implied volatility of 24 is near its 26-week average according to Track Data, suggesting non-directional price risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Wrigley volatility flat into WSJ report of Mars-Buffett deal originally appeared on BloggingStocks on Mon, 28 Apr 2008 09:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBerkshireHathawaybrk.abrk.bMars IncMarsIncoption implied volatilityOptionImpliedVolatilitywarren buffettWarrenBuffettwrigleywwyMon, 28 Apr 2008 09:25:00 EST<![CDATA[Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more ]]>http://www.bloggingstocks.com/2008/04/28/cramer-on-bloggingstocks-nat-gas-dip-was-profit-taking-nothing/http://www.bloggingstocks.com/2008/04/28/cramer-on-bloggingstocks-nat-gas-dip-was-profit-taking-nothing/http://www.bloggingstocks.com/2008/04/28/cramer-on-bloggingstocks-nat-gas-dip-was-profit-taking-nothing/#commentsFiled under: , , , , , ,

TheStreet.com's Jim Cramer says it's not a strong-dollar sell -- the story here is still too good.

Why did natural gas go down last week? What was that? Inventories were down. The commodity price was up. The fuel itself is green. It is better than ethanol and it is being used to fuel an increasing numbers of cars and trucks.

The whole move down had to have been triggered by something, right? Yeah, how about the fact that the stocks were up a lot and were due for some profit-taking.

Recall that the real "reason" they went down is that the dollar "got strong," and that was supposed to trigger commodity deflation; natural gas is a commodity and is therefore going to go down. (Barron's made this very case this weekend, oblivious to the facts, but loving the theory.)

This kind of thinking is just so stupid that it shows you can get chance after chance after chance to own the fuel that can take care of the nation if we just let it. Of course, the stocks began to come back later in the week as threats of supply cut-offs of crude -- they came true this weekend -- made natural gas declines virtually impossible, despite the "sense" that it peaked. So the money has came back and I believe will continue to come back.

Continue reading Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more

Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more originally appeared on BloggingStocks on Mon, 28 Apr 2008 09:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>andarkoapaapacheapcbuffettchesapeakechkfeaturedjim cramerJimCramernaborsnbrquestarsouthwesternstrswnultrauplwrigleywwyxtoMon, 28 Apr 2008 09:05:00 EST<![CDATA[Newspaper wrap-up: Buffett, Mars to buy Wm. Wrigley]]>http://www.bloggingstocks.com/2008/04/28/newspaper-wrap-up-buffett-mars-to-buy-wm-wrigley/http://www.bloggingstocks.com/2008/04/28/newspaper-wrap-up-buffett-mars-to-buy-wm-wrigley/http://www.bloggingstocks.com/2008/04/28/newspaper-wrap-up-buffett-mars-to-buy-wm-wrigley/#commentsFiled under: , , , ,

MAJOR PAPERS:
OTHER PAPERS:
  • According to the New York Post, IAC/InterActiveCorp. (NASDAQ: IACI) Chairman Barry Diller is expected to meet with his board this week to restart the process of breaking up his company into five separate pieces, sources said. At the same time, Diller and Liberty Media Corporation (NASDAQ: LMDIA) Chairman John Malone are continuing to talk about a deal that would trade one or more of IAC's assets for Liberty's ownership stake in IAC.
  • The UK Times has learned that Numis Securities, the stockbroking group headed by Michael Spencer, is in "advanced talks" to buy the UK equities business of The Bear Stearns Companies Inc (NYSE: BSC). Numis may look to hire a team of 25 from Bear.

Newspaper wrap-up: Buffett, Mars to buy Wm. Wrigley originally appeared on BloggingStocks on Mon, 28 Apr 2008 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ABNABN AmroAbnAmroBarry DillerBarryDillerBear StearnsBearStearnsBerkshire HathawayBerkshireHathawaybrk.abrk.bBSCiaciaciiacinteractivecorpJohn MaloneJohnMaloneLiberty MediaLibertyMediaLMDIAMarsMichael SpencerMichaelSpencerNumis SecuritiesNumisSecuritiesRBSRoyal Bank of ScotlandRoyalBankOfScotlandWarren BuffettWarrenBuffettwilliam wrigley jr.WilliamWrigleyJr.Wm. Wrigley Jr. Co.Wm.WrigleyJr.Co.WWYMon, 28 Apr 2008 08:40:00 EST<![CDATA[Buffett and Mars to buy Wrigley (WWY)]]>http://www.bloggingstocks.com/2008/04/28/buffett-and-mars-to-buy-wrigley-wwy/http://www.bloggingstocks.com/2008/04/28/buffett-and-mars-to-buy-wrigley-wwy/http://www.bloggingstocks.com/2008/04/28/buffett-and-mars-to-buy-wrigley-wwy/#commentsFiled under: , , ,

Why it makes sense to merge two big candy companies is a mystery. Nonetheless, Berkshire Hathaway (NYSE: BRK.A) and privately held Mars plan to spend $22 billion to buy gum company Wrigley (NYSE: WWY).

According to The Wall Street Journal, "Terms of the deal weren't immediately clear, but Wrigley has a stock market value of about $17.3 billion and it appeared that the buyers were prepared to offer a rich premium."

Wrigley does well outside the US while Mars does well in the domestic market.

What exactly Buffett and Mars get is unclear. The buyout would be at a price near the company's two-year high. The gum company's profits and revenue have been steadily rising, but it is not a spectacular growth business.

There would not appear to be a lot of redundant costs between the two firms. One makes mostly chocolate and the other, gum. It is questionable that they can benefit from one another's distribution networks. Both brands are widely available in the US and overseas.

Warren Buffett usually does well with his investments. How this one will work out is difficult to divine.

Douglas A. McIntyre is an editor at 247wallst.com and writes Ten Stocks Under $10.

Buffett and Mars to buy Wrigley (WWY) originally appeared on BloggingStocks on Mon, 28 Apr 2008 08:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BRK.AinthenewsMarsWarren BuffettWarrenBuffettWWYMon, 28 Apr 2008 08:22:00 EST<![CDATA[Pre-market movers (F) (WWY)]]>http://www.bloggingstocks.com/2008/04/28/pre-market-movers-f-wwy/http://www.bloggingstocks.com/2008/04/28/pre-market-movers-f-wwy/http://www.bloggingstocks.com/2008/04/28/pre-market-movers-f-wwy/#commentsFiled under: , ,

Ford (NYSE: F) is up over 7% on news that Kirk Kerkorian has taken a major position in the company.

Sohu (NASDAQ: SOHU) is up over 13% on good earnings.

Wrigley (NYSE: WWY) is up almost 26% on news of a buy-out by Mars and Warren Buffett.

Medarex (NASDAQ: MEDX) is off 12% on news of a delay in FDA action on one of its drugs.

Douglas A. McIntyre is an editor at 247wallst.com and the author of Ten Stocks Under $10.

Pre-market movers (F) (WWY) originally appeared on BloggingStocks on Mon, 28 Apr 2008 07:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FKirk KerkorianKirkKerkorianMEDXSOHUWWYMon, 28 Apr 2008 07:57:00 EST<![CDATA[Before the bell: Futures higher following deal news; investors await Fed move]]>http://www.bloggingstocks.com/2008/04/28/before-the-bell-futures-higher-following-deal-news-investors-a/http://www.bloggingstocks.com/2008/04/28/before-the-bell-futures-higher-following-deal-news-investors-a/http://www.bloggingstocks.com/2008/04/28/before-the-bell-futures-higher-following-deal-news-investors-a/#commentsFiled under: , , , , , , , , , , , , ,

Stock futures got a boost this morning from a possible $22 billion deal as Buffett's Berkshire and Mars consider buying Wrigley. Also in on investors' mind is this week's Federal Reserve meeting and rate decision as well as oil nearing $120 a barrel again.

U.S. stocks finished mixed on Friday, with the Dow industrials rising 42 points, or 0.33%, and the S&P 500 up 9 points, or 0.65%. The Nasdaq composite, however, found itself in the red following a cautious outlook from Microsoft the day before, and finished the day down almost 6 points, or 0.25%.

Without much economic news today, investors will focus on the Federal Reserve Open Market Committee two-day meeting starting Tuesday. On Wednesday, Fed chairman Bernanke will announce the policy decided and most economist expect a quarter point rate cut, but also for the Fed to halt the cuts after that as inflationary pressures have been rising.

Also, attention will be on oil prices, which once again hit an all-time high of $119.93 a barrel Monday. A refinery strike closed a pipeline system that delivers a third of Britain's North Sea oil to refineries in the U.K. as well as supply outages in Nigeria have caused oil to climb again despite the strengthening dollar.

Another big new item this morning, and one that helped boost sentiment is that of Mars and Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) nearing a deal to buy chewing gum giant Wm. Wrigley Jr. (NYSE: WWY) for more than $22 billion, according to The Wall Street Journal and The New York Times. Wrigley, which has a market capitalization value of roughly $13.6 billion, is seeing its shares climbing over 23% in premarket trading.

Continue reading Before the bell: Futures higher following deal news; investors await Fed move

Before the bell: Futures higher following deal news; investors await Fed move originally appeared on BloggingStocks on Mon, 28 Apr 2008 07:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>brk.acalfeaturedmsfttsnuauavzwwyyhooMon, 28 Apr 2008 07:40:00 EST<![CDATA[Before the bell: WM, SLB, NYX, UA, PHG, WWY, RIMM ...]]>http://www.bloggingstocks.com/2008/01/18/before-the-bell-wm-slb-nyx-ua-phg-wwy-rimm/http://www.bloggingstocks.com/2008/01/18/before-the-bell-wm-slb-nyx-ua-phg-wwy-rimm/http://www.bloggingstocks.com/2008/01/18/before-the-bell-wm-slb-nyx-ua-phg-wwy-rimm/#commentsFiled under: , , , , , , , , , , , , ,

Washington Mutual Inc. (NYSE: WM) reported a fourth quarter $1.87 billion loss, hurt badly by the sinking value of its mortgage portfolio. The quarterly loss was $2.19 per share, compared with a profit of $1.06 billion, or $1.10 per share in the same period last year. WaMu shares are up 2.3% in premarket trading.

The New York Stock Exchange has agreed to buy the American Stock Exchange.

Schlumberger (NYSE: SLB) said Friday profit rose 22% in the fourth quarter due to strong demand for oilfield services. The results were below Wall Street estimates and the shares are down over 3% in premarket trading. Earnings rose to $1.38 billion in the fourth quarter, or $1.12 per share, on revenue of $6.25 billion. Excluding a gain, the company's earnings rose to $1.37 billion, or $1.11 a share. Analysts polled by Thomson Financial had expected fourth-quarter earnings of $1.13 per share on revenue of $6.14 billion.

Continue reading Before the bell: WM, SLB, NYX, UA, PHG, WWY, RIMM ...

Before the bell: WM, SLB, NYX, UA, PHG, WWY, RIMM ... originally appeared on BloggingStocks on Fri, 18 Jan 2008 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bbbyfinthenewsnyxphgrimmslbsplstiffuawmwwyFri, 18 Jan 2008 08:30:00 EST<![CDATA[Analyst upgrades: COF, DRI, MCD and WWY]]>http://www.bloggingstocks.com/2007/08/21/analyst-upgrades-cof-dri-mcd-and-wwy/http://www.bloggingstocks.com/2007/08/21/analyst-upgrades-cof-dri-mcd-and-wwy/http://www.bloggingstocks.com/2007/08/21/analyst-upgrades-cof-dri-mcd-and-wwy/#commentsFiled under: , , , , , , ,

MOST NOTEWORTHY: McDonald's (MCD), Micron Tech (MU), ManPower (MAN), ASML Holding (ASML) and Wm. Wrigley Jr Co (WWY) were today's notable upgrades:
  • McDonald's (NYSE: MCD) is creating shareholder value by selling 1600 under-performing restaurants and using the money for share buyback programs and dividends and was upgraded to Buy from Hold at Matrix.
  • AG Edwards upgraded Micron (NYSE: MU) to Buy from Hold on the belief notebook unit growth could stay in the 25-30% YoY range over the next two quarters, while desktop growth could pick up from the 4% attained in the June quarter. Up from a low of close to $5 in February, NAND spot prices are in the $8-$9 range for an 8Gb chip over the last few weeks.
  • ManPower (NYSE: MAN) was upgraded to Strong Buy from Hold at Matrix based on the growing demand for search services in Europe, Africa and North America.
  • Friedman Billings upgraded shares of ASML Holding (NASDAQ: ASML) to Outperform from Market Perform and added them to their Top Picks list based on recent checks that indicate a sustainable recovery in lithography tool bookings beyond Q3.
  • Bear upgraded shares of Wrigley (NYSE: WWY) to Peer Perform from Underperform citing the better-then-expected response to competitor Cadbury (CSG), UK momentum in developing markets, and likely strong performance by new gum, "5."
OTHER UPGRADES:
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst upgrades: COF, DRI, MCD and WWY originally appeared on BloggingStocks on Tue, 21 Aug 2007 10:26:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analystasmlcapital oneCapitalOnecofdardendrimanmanpowermcdmcdonaldsmicronmunational semiNationalSemiratingupgradewrigleywwyTue, 21 Aug 2007 10:26:00 EST<![CDATA[Analyst downgrades: CHK, CVC, KNOT and WWY]]>http://www.bloggingstocks.com/2007/08/09/analyst-downgrades-chk-cvc-knot-and-wwy/http://www.bloggingstocks.com/2007/08/09/analyst-downgrades-chk-cvc-knot-and-wwy/http://www.bloggingstocks.com/2007/08/09/analyst-downgrades-chk-cvc-knot-and-wwy/#commentsFiled under: , , , ,

MOST NOTEWORTHY: Knot Inc (KNOT), Cablevision (CVC), Chesapeake Energy Corp (CHK), Green Mountain Coffee (GMCR) and Intermec (IN) were today's noteworthy downgrades:
  • Merriman downgraded shares of Knot Inc (NASDAQ: KNOT) to Neutral from Buy following the company's mixed outlook to reflect poor visibility.
  • Cablevision (NYSE: CVC) was downgraded to Market Perform from Outperform at Wachovia following its disappointing Q2 report and guidance. The firm does not expect a higher Dolan bid.
  • Wachovia also downgraded shares of Chesapeake Energy Corp (NYSE: CHK) to Market Perform from Outperform. The firm said management expects an equity offering in the next 6-9 months, which is in contrast to recent comments regarding capital discipline and funding plans.
  • Green Mountain Coffee (NASDAQ: GMRC) was downgraded to Market Perform from Outperform at Piper Jaffray on valuation and tough year/year comparisons.
  • Bear Stearns downgraded Intermec (NYSE: IN) to Underperform from Peer Perform on valuation.

OTHER DOWNGRADES:
  • JMP Securities lowered Kenexa (NASDAQ: KNXA) to Market Perform from Outperform.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades: CHK, CVC, KNOT and WWY originally appeared on BloggingStocks on Thu, 09 Aug 2007 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analystcablevisionchesapeakechkcvcdeltadowngradedptrgmrcgreen mountainGreenMountaininintermeckenexaknotknxanovonvoratingwrigleywwyThu, 09 Aug 2007 10:50:00 EST<![CDATA[Cadbury to update investors tomorrow]]>http://www.bloggingstocks.com/2007/06/18/cadbury-to-update-investors-tomorrow/http://www.bloggingstocks.com/2007/06/18/cadbury-to-update-investors-tomorrow/http://www.bloggingstocks.com/2007/06/18/cadbury-to-update-investors-tomorrow/#commentsFiled under: , , , ,

Tomorrow morning, confectionary company Cadbury Schweppes plc (NYSE: CSG) will update its investors on a slate of issues that range from a spin-off of its U.S. drinks unit to taking austerity measures to cut costs. Cadbury is trying to recover from a salmonella scare last year, declines in its U.K. chocolate market share, and an increase in the cost of raw materials.

An overview of what could be discussed:
  • Sale of U.S. drinks business: The company is expected to announce a sale of its U.S. drinks business, which includes 7-Up and Snapple. The New York Times reported that it is currently unclear which bidder is in the lead for the unit - bids came from a group led by Cott, a consortium that included Thomas H. Lee Partners and TPG and a third consortium led by Blackstone Group and KKR. Other possible candidates for the unit could include The Hershey Company (NYSE: HSY) or Tootsie Roll Industries Inc (NYSE: TR), in a deal that could value the unit as high as $16B. Other sources believe Kraft Foods Inc (NYSE: KFT) and Wm. Wrigley Jr. Company (NYSE: WWY) could be potential bidders; Kraft, JP Morgan believes, would have an edge over Wrigley due to greater funding, flexibility and synergies.

Continue reading Cadbury to update investors tomorrow

Cadbury to update investors tomorrow originally appeared on BloggingStocks on Mon, 18 Jun 2007 16:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CadburyCadbury SchweppesCadburySchweppesCSGcutbacksH.J. HeinzH.j.HeinzHeinzHersheyHJ HeinzHjHeinzHNZHSYInterguminvestor updateInvestorUpdateKFTKraftKraft FoodsKraftFoodslayoffssalmonellaSansei FoodsSanseiFoodsTootsie RollTootsieRollTRWrigleyWWYMon, 18 Jun 2007 16:45:00 EST