Having accepted a speaking engagement at a university school of business recently, I had to think about what introductory information I could impart to the students about investing that would be practical, immediately useful and establish a foundation for whatever direction their paths might lead. This was supposed to be the first in a series. However, since I pull no punches and can be a little edgy in my candor and presentation, who knew if I would be invited back?

My outline had five basic elements. The first thing I told them was to start now!

Continue reading Chasing Value: Class Is in Session -- Where to Start

Chasing Value: Class Is in Session -- Where to Start originally appeared on BloggingStocks on Mon, 13 Sep 2010 13:00:00 EST. Please see our terms for use of feeds.

Carl Icahn, the famous activist investor, resigned from the Yahoo! (NASDAQ: YHOO) board of directors Friday.

This comes just over a year after he scored the position, following the seemingly endless talks the company had with Microsoft (NASDAQ: MSFT) over the possibility of a takeover. Icahn told Yahoo that he was resigning effective immediately because Yahoo! didn't need an activist investor on the board at this time.

Continue reading Icahn bails from Yahoo! board of directors

Icahn bails from Yahoo! board of directors originally appeared on BloggingStocks on Sat, 24 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.

Since the stock market is down so much I have been buying something in the fourth quarter almost every week. I have been patient and have been expanding my watch list. The difficulty for me is that I feel like almost everything is on sale -- but is everything a bargain?

Maybe not; maybe I'm delusional. Perhaps that is because I am tuned into another time and place when I would have been dancing in the streets if I were able to acquire Anglo American ADR (NASDAQ: AAUK) or General Electric (NYSE: GE) for pennies on the dollar. Maybe that is all these stocks are worth? That is what Wall Street currently thinks. That is what Main Street currently thinks. There is a lot more bad news than good.

Then why is Warren Buffett buying, and Carl Icahn and Ken Heebner? After all, I'm just following in their shadows.

The reason is that most investors are simply focused on all the bad news. That is what has most folks' attention and that is making the market -- bankruptcies, billions of dollars in losses, government out of control, Wall Street out of control and more. There is also serious fear things will get worse. If you lost money in the stock market (all of us), or lost your job or your house or any combination of the above, then things look bleak and for now they are. However, we should not be investing for now; we should be investing for the future.

Consider the following elements that support a recovery in the next year. I do not mean a boom, just a recovery -- just a more positive investing environment.

1) By spring it is estimated the government will have poured $2 trillion dollars into an economy of $13 trillion over a 12-month period. Not only is this a market stimulus, but it may prove to be highly inflationary, and if so equities are a better place to be then cash.

Continue reading Serious Money: Can everything be a bargain?

Serious Money: Can everything be a bargain? originally appeared on BloggingStocks on Fri, 26 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

Carl Icahn sells his yacht -- why? originally appeared on BloggingStocks on Tue, 21 Oct 2008 11:15:00 EST. Please see our terms for use of feeds.

Microsoft announces big buyback, raises dividend originally appeared on BloggingStocks on Mon, 22 Sep 2008 09:45:00 EST. Please see our terms for use of feeds.

Yahoo schedules board dinner and meeting originally appeared on BloggingStocks on Sat, 20 Sep 2008 14:15:00 EST. Please see our terms for use of feeds.

ImClone's mystery suitor? originally appeared on BloggingStocks on Wed, 10 Sep 2008 19:43:00 EST. Please see our terms for use of feeds.

Yahoo (NASDAQ: YHOO) is recently down 45 cents to $22 in pre-open trading.

YHOO announced it reached an agreement with Carl Icahn to settle their proxy content. Under the terms of the settlement agreement, Carl Icahn will be appointed to YHOO's board of directors. YHOO Q2 EPS are scheduled for July 22. YHOO annual shareholder meeting is scheduled for August 1st.

YHOO August option implied volatility of 77 is above its 26-week average of 45 according to Track Data, indicating larger price movement.

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

Option Update: Yahoo volatility at 77 into Icahn settlement originally appeared on BloggingStocks on Mon, 21 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.

The New York Times reports that Friday night Microsoft Corp. (NASDAQ: MSFT) and Carl Icahn made an offer for Yahoo! (NASDAQ: YHOO). The offer was for Microsoft to buy Yahoo's search business and for Icahn to buy the rest of Yahoo!

Icahn and Microsoft gave Yahoo! 24 hours to decide. But Yahoo! took "four or five hours" to reject the offer. The Times quotes Yahoo! chairman, Roy Bostock who said: "It is ludicrous to think that our board could accept such a proposal. While this type of erratic and unpredictable behavior is consistent with what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders."

I am not sure what the terms of this latest offer were. But it seems foolish of Microsoft and Icahn to make an offer and give Yahoo! only 24 hours on a weekend to decide. I wonder whether they're simply trying to annoy Yahoo! and expect that their tactics will encourage its board to resign in frustration so Icahn won't need to spend more money trying to throw them out.

Continue reading Yahoo rejects new Microsoft/Icahn offer

Yahoo rejects new Microsoft/Icahn offer originally appeared on BloggingStocks on Sun, 13 Jul 2008 07:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Corporate advertisers are not flocking to YouTube despite the fact that the video sharing site attracts one billion views a day, upsetting Google Inc's (NASDAQ: GOOG) expectations for a strong revenue stream, according to the Wall Street Journal. Total ad revenue for Google this year will be about $200M from the site, where the company is counting on growth beyond its text ads from Web searches.
• A day after Microsoft Corporation (NASDAQ: MSFT) said it would be interested in reopening talks to acquire some of all of Yahoo! Inc (NASDAQ: YHOO) if Carl Icahn's proxy battle succeeds, the Wall Street Journal reported that Yahoo! CEO Jerry Yang accused Microsoft of "trying to destabilize" the company "without a real desire to complete a deal".

• The Atlanta Journal Constitution reported that Comair, a subsidiary of Delta Air Lines Inc (NYSE: DAL), is set to cut 300 pilots and 220 flight attendants from its staff. The paper said the layoffs will go into effect in September when Comair cuts its flight schedule as part of Delta's capacity cuts and will affect crew members based at Cincinnati/Northern Kentucky International Airport and New York's John F. Kennedy International Airport.

• Iran successfully test-launched a long-range version of its Shahab-3 missile, according to Iranian news service Al-Alam. The missile can reach U.S. military bases in the Persian Gulf and Israel.

Newspaper wrap-up: Google has a difficult time getting ad revenue from YouTube originally appeared on BloggingStocks on Wed, 09 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

From the lawsuit (pdf file) it seems that some of the misleading statements Anheuser is complaining about have to do with InBev's financing possibilities and its plans for the company once it is taken over. I don't normally read litigation documents, but the language here seems quite strong with allegations even of rumor mongering. Judge for yourself:

Continue reading Anheuser-Busch (BUD) sues InBev, what's next?

Anheuser-Busch (BUD) sues InBev, what's next? originally appeared on BloggingStocks on Tue, 08 Jul 2008 15:42:00 EST. Please see our terms for use of feeds.

While calling Arthur Levitt's tenure as chairman of the Securities & Exchange Commission ineffective would be an understatement, he could, and still can, be relied upon to say the right thing. Now that the SEC finally has the quorum necessary to take action on a variety of issues, they should take Levitt's advice about proxy access changes.

Earlier this year the SEC made it impossible for shareholders to change the way directors are elected -- one of the most anti-investor events in recent history -- and it's time for that to change. Levitt writes in The Wall Street Journal that "While not a panacea, giving shareholders a bigger voice in the companies they own would go a long way in helping to restore trust."

Exactly. Some critics of strong corporate governance say that the SEC shouldn't meddle in these affairs. I basically agree: but the problem is that the SEC has meddled, making it impossible for shareholders to take control of their own companies when necessary.

Continue reading Arthur Levitt calls it right on corporate governance reforms

Arthur Levitt calls it right on corporate governance reforms originally appeared on BloggingStocks on Wed, 02 Jul 2008 14:07:00 EST. Please see our terms for use of feeds.

Anheuser-Busch vs. InBev -- ready for a bar brawl? originally appeared on BloggingStocks on Thu, 26 Jun 2008 18:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to Yahoo! Inc (NASDAQ: YHOO), the Wall Street Journal reported that a severance plan investor Carl Icahn said is "excessively expensive" would come into play if Icahn is successful in his plan to take control of the company's board; Yahoo! maintained that the plan is structured to prevent Yahoo! from altering or dismantling it while under a proxy challenge.
• The Financial Times reported that Lehman Brothers Holdings Inc (NYSE: LEH) almost reached a strategic deal with a group of Korean financial institutions as part of its recent capital raising initiative, and the investment bank may still sign an agreement with the Korean companies this year, inside sources said.
• According to the Financial Times, Merrill Lynch & Co Inc (NYSE: MER), UBS AG (NYSE: UBS) and Citigroup Incorporated (NYSE: C), which are most exposed to MBIA Inc (NYSE: MBI) and Ambac Financial Group Inc (NYSE: ABK), are facing further write downs of up to $10B after the bond insurers lost the battle to keep their triple A credit ratings in tact.
• A source familiar with the matter told dealReporter that Barnes & Noble Inc (NYSE: BKS) is conducting due diligence, but has not established whether it will competitively bid for Borders Group Inc (NYSE: BGP). Should Barnes & Noble indicate real interest, the biding process could be delayed, the source said.

• The Detroit News reported that Ford Motor Company (NYSE: F), in an effort to keep up with changing consumer demand in the U.S., is assembling a plan that will shift entire truck plants to car production.

Newspaper wrap-up: Lehman almost raised capital from Korean companies originally appeared on BloggingStocks on Wed, 11 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• UBS AG (NYSE: UBS) won't comment on write-down estimates, but according to the Wall Street Journal, investors are expecting it as prices for mortgage securities have significantly gotten worse over the past several weeks as evidenced by Lehman Brothers Holdings Inc (NYSE: LEH) profit warnings.
• Yesterday Lehman's stock fell 8.7% as the firm announced a projected $2.8B second quarter loss and a $6B capital raise. Options activity indicated a lessening volatility, the Wall Street Journal reported, a sign that perhaps the worst may be over.
• According to a person familiar with the matter, the Financial Times reported that China's Qingdao Haier has approached investment banks to advise it on a bid for General Electric Company's (NYSE: GE) appliance business.

• A brief filed by plaintiffs in a shareholder lawsuit against Yahoo! Inc (NASDAQ: YHOO) and its directors claimed that an employee severance plan put in place to protect workers after a merger with Microsoft Corporation (NASDAQ: MSFT) should be repealed immediately. The New York Times reported that the plaintiffs believe the plan could skew the outcome of a proxy battle between Yahoo! and Carl Icahn for control of the company.

Newspaper wrap-up: UBS facing more write-downs? originally appeared on BloggingStocks on Tue, 10 Jun 2008 08:40:00 EST. Please see our terms for use of feeds.

Icahn not likely to fall for Microsoft's new plans for Yahoo originally appeared on BloggingStocks on Mon, 19 May 2008 08:33:00 EST. Please see our terms for use of feeds.

The Associated Press reports that talks between Microsoft Corp. (NASDAQ: MSFT) and Yahoo (NASDAQ: YHOO) may be back on. In a statement Sunday, Microsoft says it is considering a different kind of deal with Yahoo. "Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative."

This news will come as good news to Carl Icahn who launched an effort to oust Yahoo's board. I think he is an aggressive representative of the wave of institutional investors who would like nothing more than to make a quick buck on their Yahoo shares. Those investors were sorely disappointed that Microsoft and Yahoo could not come to terms on a deal a few weeks ago.

However, the current talks seem quite vague at this point. Yet they could be Yahoo's direct response to Icahn who, according to the Wall Street Journal, told Yahoo's board it could quickly quell Icahn's shareholder revolt by renewing negotiations with Microsoft -- but Microsoft warned that it's possible no deal will be struck. So we wait...

Update. The New York Times reports that Microsoft is proposing a search-engine marketing alliance with Yahoo to help Microsoft gain share against Google Inc. (NASDAQ: GOOG). Yahoo could announce a formal agreement on a partnership with Google this week. A Yahoo-Google partnership, which is likely to face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Is Microsoft/Yahoo back on? originally appeared on BloggingStocks on Sun, 18 May 2008 17:05:00 EST. Please see our terms for use of feeds.

Under the plan, MOT's handset business will become its own entity separate from the company's home and networks business. The move comes after months of pressure from billionaire investor Carl Icahn, who thinks separating the handset business from other operations could help the company strengthen its mobile phone brand and bottom line. Pending regulatory approval, the company will be split in 2009. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MOT.

After hitting a one-year high of $19.68 in October, the stock hit a one-year low of $8.98 last week. MOT opened this morning at $10.30. So far today the stock has hit a low of $9.82 and a high of $10.35. As of 10:00, MOT is trading at $9.81, up just $0.05 (0.5%), indicating that investors aren't going crazy about this announcement. The chart for MOT looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

Continue reading Motorola (MOT) finally caves to break-up pressure

Motorola (MOT) finally caves to break-up pressure originally appeared on BloggingStocks on Wed, 26 Mar 2008 11:36:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that private loans under the Federal Family Education Loan, or FEEL, program have begun to give way to the federal direct loan program, as private lenders run into subsidy cuts and problems raising capital. To date about 60 colleges and universities have made the switch.
• Carl Icahn, a 6.3% Motorola Inc (NYSE: MOT) shareholder, has sued the company to get board of director documents, turning away offers of two board seats, the Wall Street Journal reported. Icahn wants information about the company's unprofitable handset business.
• Ford Motor Company (NYSE: F) is expected Wednesday to announce an agreement to sell its Jaguar and Land Rover units to India's Tata Motors Limited (NYSE: TTM) for about $2B, the Financial Times reported.

• According to the Business Review, New York State Senator Charles Schumer is planning to 'reveal details' of a conversation he had with the CEO of Advanced Micro Devices Inc (NYSE: AMD) on March 21 about the company's plans to build a $3.2B computer chip plant in Saratoga County.

Newspaper wrap-up: Schumer to speak about conversation with AMD CEO originally appeared on BloggingStocks on Tue, 25 Mar 2008 08:05:00 EST. Please see our terms for use of feeds.

Carl Icahn Sues Motorola, trashes CEO originally appeared on BloggingStocks on Mon, 24 Mar 2008 16:26:00 EST. Please see our terms for use of feeds.