Uploaded by FinancialNewsOnline on Dec 7, 2011
This is what's in the news for Wednesday December 7th. The Wall Street Journal reports Microsoft (NASDAQ:MSFT) plans to increase competition with Apple (NASDAQ:AAPL) when it emulates the app store concept in personal computers, beginning with the next version of the Windows operating system. The Wall Street Journal also reports Coca-Cola's (NYSE:KO) Freestyle soda fountain received a major endorsement as Burger King Corp. (NYSE:BKC) said it's planning to install the high-tech machine in all 850 U.S. company-owned restaurants. Reuters reports more than 100 U.S. aerospace and defense industry executives are urging Defense Secretary Panetta to hold off on proposed changes to Pentagon contracts with industry because of competition, cost and job concerns. Finally, Bloomberg reports Teva Pharmaceutical's (NASDAQ:TEVA) emergency contraceptive may be the first approved for over-the-counter use by females of any age under a decision now under consideration by the FDA.
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Olympus Board Shows Signs of Quitting Over Accounting Scandal
Uploaded by FinancialNewsOnline on Dec 7, 2011
At a news conference on Wednesday, camera maker Olympus announced the resignation of one director, saying others may follow. This due in part to a $1.7 billion accounting fraud uncovered by former CEO Michael Woodford.
The company said the entire board of directors could resign once the firm submits its second-quarter earnings, due out by December 14th. This would cause a battle of control over the Japanese company with Woodford leading the pack.
Yesterday, an external investigative panel report revealed that several former executives spent 13 years running a complex scheme to hide huge investment losses off the company's balance sheet.
Police are still investigating the matter with rumors swirling that the company could be involved in organized crime. If this turns out to be true, Olympus would likely be delisted from the stock market.
The company said the entire board of directors could resign once the firm submits its second-quarter earnings, due out by December 14th. This would cause a battle of control over the Japanese company with Woodford leading the pack.
Yesterday, an external investigative panel report revealed that several former executives spent 13 years running a complex scheme to hide huge investment losses off the company's balance sheet.
Police are still investigating the matter with rumors swirling that the company could be involved in organized crime. If this turns out to be true, Olympus would likely be delisted from the stock market.
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Expedia (NASDAQ:EXPE) Stockholders Approve Spin-Off Of TripAdvisor (potential upside 12.9%)
Uploaded by FinancialNewsOnline on Dec 7, 2011
Expedia (NASDAQ:EXPE) announced late Tuesday that its stockholders overwhelmingly approved the spin-off of TripAdvisor, and the related proposals submitted at Expedia's annual meeting of stockholders held earlier Wednesday, including the one-for-two reverse stock split proposal, the conversion of the outstanding shares of Expedia Series
A preferred stock into the right to receive a fixed amount of cash pursuant to a merger, and various amendments to Expedia's certificate of incorporation. The approval included a favorable vote by more than a majority of the non-management shares. Expedia expects the transaction to close on or about December 20, including implementation of a one-for-two reverse stock split of Expedia stock immediately prior to the spin-off.
On the first trading day after the spin-off is completed, which trading day is currently expected to be on or about Dec. 21, regular way trading will commence for TripAdvisor under the symbol "TRIP" and will continue for EXPE under the symbol "EXPE."
Expedia (NASDAQ:EXPE) has potential upside of 12.9% based on a current price of $28.81 and an average consensus analyst price target of $32.53.
A preferred stock into the right to receive a fixed amount of cash pursuant to a merger, and various amendments to Expedia's certificate of incorporation. The approval included a favorable vote by more than a majority of the non-management shares. Expedia expects the transaction to close on or about December 20, including implementation of a one-for-two reverse stock split of Expedia stock immediately prior to the spin-off.
On the first trading day after the spin-off is completed, which trading day is currently expected to be on or about Dec. 21, regular way trading will commence for TripAdvisor under the symbol "TRIP" and will continue for EXPE under the symbol "EXPE."
Expedia (NASDAQ:EXPE) has potential upside of 12.9% based on a current price of $28.81 and an average consensus analyst price target of $32.53.
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Research In Motion (NASDAQ:RIMM) To Change Name Of Next Line Of Phones (potential upside of 64.6%)
Uploaded by FinancialNewsOnline on Dec 7, 2011
The Wall Street Journal reported that a federal judge has approved a request for a temporary restraining order from Basis International and has barred Research In Motion (NASDAQ:RIMM) from using the BBX name for its next generation smartphones.
Research in Motion said in a set statement that it doesn't typically comment on current litigation, but it said it has already revealed the BlackBerry 10 name for its new phones.
Research In Motion (NASDAQ:RIMM) has potential upside of 64.6% based on a current price of $17.03 and an average consensus analyst price target of $28.03.
Research in Motion said in a set statement that it doesn't typically comment on current litigation, but it said it has already revealed the BlackBerry 10 name for its new phones.
Research In Motion (NASDAQ:RIMM) has potential upside of 64.6% based on a current price of $17.03 and an average consensus analyst price target of $28.03.
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AT&T (NYSE:T) Provides Update On Trends In Wireless Segment (potential upside 7.3%)
Uploaded by FinancialNewsOnline on Dec 7, 2011
AT&T (NYSE:T) reaffirmed guidance given at release of its Q3 earnings that it expected Q4 to be one of its strongest smartphones sales quarters ever. The Company has been experiencing strong wireless sales so far in the fourth quarter, nearing the all-time quarterly smartphone sales record. For the first two months of the fourth quarter, AT&T sold about 6 million smartphones.
Its previous quarterly record was 6.1 million smartphone sales set in the third quarter of 2010. AT&T is also seeing a higher number of customers upgrading their handsets than in prior quarters, in part reflecting customers who were waiting for the new iPhone, which launched in October 2011.
The higher number of upgrades indicates that customers have continued to stay with AT&T in record numbers even in a very competitive environment, with more carriers than ever selling the iPhone. Also consistent with AT&T's earlier guidance, these record smartphone sales are expected to have a near-term negative impact on margins and therefore earnings.
However, AT&T expects that these postpaid customers over time will benefit the Company as, historically; postpaid customers produce stable revenue, reflecting their contract term, and higher average revenue per subscriber, including stronger data usage, than other customer categories.
AT&T (NYSE:T) has potential upside of 7.3% based on a current price of $29.17 and an average consensus analyst price target of $31.29.
Its previous quarterly record was 6.1 million smartphone sales set in the third quarter of 2010. AT&T is also seeing a higher number of customers upgrading their handsets than in prior quarters, in part reflecting customers who were waiting for the new iPhone, which launched in October 2011.
The higher number of upgrades indicates that customers have continued to stay with AT&T in record numbers even in a very competitive environment, with more carriers than ever selling the iPhone. Also consistent with AT&T's earlier guidance, these record smartphone sales are expected to have a near-term negative impact on margins and therefore earnings.
However, AT&T expects that these postpaid customers over time will benefit the Company as, historically; postpaid customers produce stable revenue, reflecting their contract term, and higher average revenue per subscriber, including stronger data usage, than other customer categories.
AT&T (NYSE:T) has potential upside of 7.3% based on a current price of $29.17 and an average consensus analyst price target of $31.29.
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ConocoPhillips (NYSE:COP) May Look To Sell Louisiana Refinery (potential upside 7.3%)
Uploaded by FinancialNewsOnline on Dec 7, 2011
ConocoPhillips (NYSE:COP) may be looking to sell its Alliance refinery in Belle Chasse, Louisiana, Dow Jones reports.
The company says no layoffs are planned and the refinery will continue operating as usual throughout the marketing process. Deutsche Bank (NYSE:DB) has been retained to assist in soliciting potential interest in the refinery
ConocoPhillips (NYSE:COP) has potential upside of 7.3% based on a current price of $72.54 and an average consensus analyst price target of $77.8.
The company says no layoffs are planned and the refinery will continue operating as usual throughout the marketing process. Deutsche Bank (NYSE:DB) has been retained to assist in soliciting potential interest in the refinery
ConocoPhillips (NYSE:COP) has potential upside of 7.3% based on a current price of $72.54 and an average consensus analyst price target of $77.8.
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J.C. Penney (NYSE:JCP) to Buy Stake in Martha Stewart Living Omnimedia
Uploaded by FinancialNewsOnline on Dec 7, 2011
J.C. Penney Company (NYSE:JCP) and Martha Stewart Living Omnimedia (NYSE:MSO) announced they have entered into a strategic alliance to create a unique and comprehensive retail experience.
Under the terms of the 10-year agreement, both companies will develop both a retail space with in J.C. Penney stores and an e-commerce site. Both will offer Martha Stewart products, know-how and advice.
The agreement also involves an investment of $38.5 million by J.C. Penney. The retailer will buy 11 million newly issued shares of Class A common stock at $3.50 a share or 16.6% stake in Martha Stewart Living Omnimedia.
Ron Johnson, chief executive officer of J. C. Penney Company, Inc., said, "I have long admired Martha Stewart's extraordinary influence on the way American families live and enjoy their lives. For nearly two decades she has been the primary person we turn to for advice regarding food, entertaining, decorating, and celebrating life's memorable moments. The opportunity to work with Martha and create an entirely new shopping experience, both in-store and online, is a once in a lifetime opportunity. The Martha Stewart brand embodies quality, beauty, inspiration and possibility and we intend for Martha Stewart stores to be a key centerpiece of our new strategy to transform jcpenney into America's Favorite Store."
JC Penney is currently above its 50-day moving average (MA) of $31.18 and above its 200-day of $32.51.
Under the terms of the 10-year agreement, both companies will develop both a retail space with in J.C. Penney stores and an e-commerce site. Both will offer Martha Stewart products, know-how and advice.
The agreement also involves an investment of $38.5 million by J.C. Penney. The retailer will buy 11 million newly issued shares of Class A common stock at $3.50 a share or 16.6% stake in Martha Stewart Living Omnimedia.
Ron Johnson, chief executive officer of J. C. Penney Company, Inc., said, "I have long admired Martha Stewart's extraordinary influence on the way American families live and enjoy their lives. For nearly two decades she has been the primary person we turn to for advice regarding food, entertaining, decorating, and celebrating life's memorable moments. The opportunity to work with Martha and create an entirely new shopping experience, both in-store and online, is a once in a lifetime opportunity. The Martha Stewart brand embodies quality, beauty, inspiration and possibility and we intend for Martha Stewart stores to be a key centerpiece of our new strategy to transform jcpenney into America's Favorite Store."
JC Penney is currently above its 50-day moving average (MA) of $31.18 and above its 200-day of $32.51.
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Lehman Brothers Approved to Exit Bankruptcy
Uploaded by FinancialNewsOnline on Dec 7, 2011
Lehman Brothers, which collapsed in September 2008, received court approval to exit bankruptcy early next year.
U.S. Bankruptcy Judge James Peck told a hearing in New York that Lehman may now wind down its remaining operations.
Lehman, which was run by Chief Executive Officer Richard Fuld when its collapse help bring on the worst economic slump since the Great Depression, settled a fight with creditors in a June payment plan that allotted more money to derivatives claimants including Goldman Sachs (NYSE:GS) less to bondholders such as Paulson & Co. Both groups had planned rival plans to pay Lehman's debts.
U.S. Bankruptcy Judge James Peck told a hearing in New York that Lehman may now wind down its remaining operations.
Lehman, which was run by Chief Executive Officer Richard Fuld when its collapse help bring on the worst economic slump since the Great Depression, settled a fight with creditors in a June payment plan that allotted more money to derivatives claimants including Goldman Sachs (NYSE:GS) less to bondholders such as Paulson & Co. Both groups had planned rival plans to pay Lehman's debts.
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