Diversified publisher McGraw-Hill Companies Inc. (MHP) is likely to face a challenging 2011.

McGraw-Hill's education segment will face an increasing sluggish textbook market, as public school systems -- particularly those in poorer U.S. school districts, K-12 -- continue to belt-tighten in every way possible, due to state and local budget cutbacks. Translation: use existing textbooks longer, and increase use of the used-book market.

Continue reading Short City: McGraw-Hill

Short City: McGraw-Hill originally appeared on BloggingStocks on Wed, 08 Dec 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Another Wishy-Washy Day of Trading (MCO, MHP, CVX, ITMN, AIG, C, MU)

Closing Bell: Another Wishy-Washy Day of Trading (MCO, MHP, CVX, ITMN, AIG, C, MU) originally appeared on BloggingStocks on Wed, 10 Mar 2010 16:00:00 EST. Please see our terms for use of feeds.

Look, 2009 was a "flush" year. Market rallies were constrained by the low baseline set at the end of 2008, unemployment was high and caution defined nearly every corporate decision. The travel market sucked. The art market sucked. The financial industry labored on with the support of taxpayer money while 140 banks were forced to call it quits. So, we turn to the new year, as yet undefined, for excitement of the type we want ... and it seems likely to deliver. As Nero played from the rooftops, the social media industry inched forward to the climax we hope to see this year -- the initial public offering.

The action hasn't really begun, and the signals emitted are open to various interpretations. Nonetheless, Facebook's new dual-class stock structure is hard to miss, as it would protect the influence of early entrants to the company -- either as investors or options-compensated employees in the event that the 350 million-strong social networking site brings ownership opportunities to the public.

Continue reading Social IPO? Hype Accumulates for 2010 Offerings

Social IPO? Hype Accumulates for 2010 Offerings originally appeared on BloggingStocks on Sat, 02 Jan 2010 14:30:00 EST. Please see our terms for use of feeds.

Look for a LinkedIn IPO, but not in the near future. Company co-founder and executive chairman Reid Hoffman has revealed his (and his investors') exit strategy, even if it could take a while to get there. Any social media company IPO would take a while to get off the ground in this market, since companies are being incredibly cautious. So, "not anytime soon" could coincide with a change in market conditions ... but Hoffman stopped well short of that.

At an event in London to celebrate LinkedIn's hitting the 3 million user mark in Britain, Hoffman said about the company's IPO prospects, "Probably at some point a balance will occur when that's the right thing. That will not occur in the near term." Worldwide, LinkedIn has 53 million members.

Continue reading Reid Hoffman: LinkedIn will go public (at some point)

Reid Hoffman: LinkedIn will go public (at some point) originally appeared on BloggingStocks on Wed, 25 Nov 2009 14:30:00 EST. Please see our terms for use of feeds.

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

• Aflac Inc. (NYSE: AFL) reported strong Q3 results, declared a dividend, and offered guidance for Q4.
• Avon Products Inc. (NYSE: AVP) Q3 earnings slumped and revenue was hurt by currency translations.
• BP (NYSE: BP) shares leaped higher after it reported better-than-expected quarterly earnings.
• Daimler AG (NYSE: DAI) reported that it returned to profitability in Q3 but warned of decreasing revenue.
• General Dynamics Corp. (NYSE: GD) Q3 earnings beat expectations and it lifted its earnings outlook.
• Hershey Co. (NYSE: HSY) posted strong Q3 earnings and expects full-year earnings ahead of forecasts.

Continue reading Earnings highlights: Aflac, Avon, BP, Hershey, Kellogg, Nintendo, P&G, Sprint ...

Earnings highlights: Aflac, Avon, BP, Hershey, Kellogg, Nintendo, P&G, Sprint ... originally appeared on BloggingStocks on Sat, 31 Oct 2009 10:10:00 EST. Please see our terms for use of feeds.

Scholastic (NASDAQ: SCHL), the publisher of the Harry Potter books, issued its first-quarter numbers on Thursday. Although things do seem to be improving, I can't say I was wholly enchanted by the data.

Net sales from continuing operations rose 14%. Okay, that's a good start. Double-digit rises are always respectable. But then we get to the bottom line. Scholastic, which is a related business to McGraw-Hill (NYSE: MHP), lost 68 cents per share from continuing operations. Now, sure, the loss was considerably less severe than the year-ago black ink of $1.13 per share. But I always get nervous when I read about losses. Can't help it.

Continue reading Scholastic's Q1 doesn't cast magic spell -- or does it?

Scholastic's Q1 doesn't cast magic spell -- or does it? originally appeared on BloggingStocks on Fri, 25 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading BusinessWeek could be yours for $1

BusinessWeek could be yours for $1 originally appeared on BloggingStocks on Tue, 14 Jul 2009 17:15:00 EST. Please see our terms for use of feeds.

Continue reading Short City: McGraw-Hill, Paychex

Short City: McGraw-Hill, Paychex originally appeared on BloggingStocks on Wed, 13 May 2009 18:20:00 EST. Please see our terms for use of feeds.

The Wall Street Journal (subscription required) has obtained a draft version of the SEC's report on bond-rating firms and their role in the credit bubble, and some of the stuff is pretty scary.

In one e-mail, a staffer at Standard & Poor's, which is own by McGraw-Hill (NYSE: MHP) told another that "we rate every deal," and that "it could be structured by cows and we would rate it."

Another wrote that "rating agencies continue to create" an "even bigger monster -- the CDO market. Let's hope we are all wealthy and retired by the time this house of cards falters. ;O)"

Yes -- complete with the smiley face. If this seems reminiscent of disgraced analyst Henry Blodget's e-mails bashing stocks he was publicly pumping during the dot-com bubble, that's because it's exactly the same. The lesson here, once again, is this: e-mails ever really get deleted permanently and, if you're being shady or doing something unethical, make a phone call, talk with the person in a dark alley, or send them a letter that they can promptly discard. Don't send an e-mail!

Of course, S&P's investment-grade ratings on CDOs stuffed with dodgy loans turned out to be wildly optimistic, and the house of cards has done more than falter -- it's brought down Bear Stearns and wreaked havoc on the economy.

S&P rated deal 'structured by cows' according to SEC report originally appeared on BloggingStocks on Sat, 02 Aug 2008 14:40:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies initiated McGraw-Hill (NYSE: MHP) with a Buy rating and $49 target. The firm believes the downturn in credit markets has already been fully priced into shares and expects the stock to gain momentum throughout 2008 in anticipation of liquidity returning to credit markets.
  
• RBC Capital initiated Curis (NASDAQ: CRIS) with an Outperform rating and $2.50 target based on the company's partnership with Genentech (NYSE: DNA) and potential upside from its pipeline.
  
• Merriman started Azure Dynamics (OTC: AZDDF) with a Buy rating. The firm believes the company's focus is where customers see the most benefit from a medium-duty hybrid or market-appropriate solutions and finds the stock attractively valued.

• Dr. Pepper Snapple (NYSE: DPS) was assumed with a Market Perform rating at Wachovia.
  
• Morgan Stanley started Chiquita Brands (NYSE: CQB) with an Equal Weight rating.
  
• Credit Suisse initiated Iron Mountain (NYSE: IRM) with a Neutral rating and $34 target.

Analyst initiations: MHP, CRIS, DPS, CQB, IRM and AZDDF originally appeared on BloggingStocks on Tue, 13 May 2008 12:12:00 EST. Please see our terms for use of feeds.

A new look for BusinessWeek (MHP) originally appeared on BloggingStocks on Thu, 11 Oct 2007 18:00:00 EST. Please see our terms for use of feeds.

Outsiders would like to blame some of the subprime mess on ratings agencies like S&P. They argue that the firms should have downgraded the debt more quickly. Maybe, but it is hard to say that the tidal wave could be spotted. Predicting how many people will default from such a large pool may be very hard, if not impossible, to do.

According to The Wall Street Journal, half of McGraw-Hill's revenue comes from S&P.

It is hard to see how firing the credit ratings company's CEO accomplishes anything.

Douglas A. McIntyre is a partner at 24/7 Wall St.

S&P chief Kathleen Corbet out at McGraw-Hill (MHP) originally appeared on BloggingStocks on Fri, 31 Aug 2007 06:50:00 EST. Please see our terms for use of feeds.

One of the benefits of the mortgage meltdown is that its fallout is making us aware of parts of the financial markets that usually remain hidden from view. This comes to mind in reading a New York Times [registration required] report that a British money management firm, Cheyne Finance, may liquidate the assets backing its $10 billion Commercial Paper (CP) program.

Cheyne is a Structured Investment Vehicle (SIV) -- one of 30 in the $2.2 trillion CP market that borrow money using CP - and then invest the money in longer-term securities with slightly higher yields. The SIV. then pockets the difference, bolstering the asset management company's overall return.

The problem with Cheyne is that 25% of its CP is backed by pools of home equity loans. And in the last two weeks, McGraw Hill Companies' (NYSE: MHP) S&P downgraded Cheyne's CP by six notches. I don't know what's changed so suddenly but if your money market fund is invested in Cheyne's CP, you could have a problem.

With Asian markets taking a sympathy plunge this morning -- "Everyone is scared. It's like walking in the dark because we have yet to get the full picture of the subprime loan problems" -- do you think Fed Chair Ben Bernanke and Treasury Secretary Hank Paulson were right to say the subprime mortgage crisis is contained?

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter.

Continue reading Mortgage meltdown burns commercial paper market -- could hurt your money market fund

Mortgage meltdown burns commercial paper market -- could hurt your money market fund originally appeared on BloggingStocks on Wed, 29 Aug 2007 07:15:00 EST. Please see our terms for use of feeds.

Moody's (NYSE: MCO) volatility elevated into 2Q revenues increasing 52% to $261M. MCO, a provider of credit ratings, research and analysis covering fixed income securities closed at $53.89. MCO reported 2Q EPS of 95 cents verses consensus estimates of 69 cents. MCO over all option implied volatility of 45 is above its 26-week average of 33 according to Track Data, suggesting larger fluctuations.

McGraw-Hill (NYSE: MHP) implied volatility Elevated at 34. MHP, a global information service provider, closed at $60.50. MHP's S&P division Standard & Poor's, is a provider of market intelligence, including independent credit ratings, risk evaluation and data. MHP over all option implied volatility of 34 is above its 26-week average of 22 according to Track Data, suggesting larger risk.

Amex Financial Select Sector (NYSE: XLF) call implied volatility Elevated at 38. XLF seeks to replicate the total retune of the Financial Select sector of the S&P 500 Index. XLF implied volatility is elevated on uncertain submprime mortgage risk exposure. C, BAC, AIG, JPM, WFC, WB & GS are components of the XLF. XLF August at the money option call implied volatility is at 38, puts are at 35; above its 26-week average of 17 according to Track Data, suggesting larger risk.

Macquarie Infrastructure (NYSE: MIC) volatility Elevated at 26 into 8/9 EPS. MIC, a market leader in the ownership and operation of infrastructure businesses in the US, will announce EPS on August 9th. MIC over all option implied volatility of 26 is above its 26-week average of 21 according to Track Data, suggesting larger risk.

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

Option update 8-1-07: Financials implied volatility continues to increase originally appeared on BloggingStocks on Wed, 01 Aug 2007 10:15:00 EST. Please see our terms for use of feeds.

McGraw-Hill on the move... originally appeared on BloggingStocks on Fri, 26 Jan 2007 12:10:00 EST. Please see our terms for use of feeds.