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Home Depot profit drops less-than-forecast 31%Home Depot Inc. on Tuesday reported a 31% drop in its fiscal third-quarter profit as consumers curtailed big-ticket and other discretionary spending, leading the world’s top home-improvement retailer to lower its sales projection for the year but keep its profit outlook.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:13 pm Ford to raise $540 million by cutting Mazda stakeAs part of its effort to strengthen its balance sheet, Ford Motor Co. says it will cut its stake in Mazda Motor Corp., raising $540 million from the sale.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:10 pm HP preliminary results beat expectationsHewlett-Packard posted stronger-than-expected preliminary quarterly results and gave a full-year profit forecast that beat Wall Street estimates despite the weak global economySource: Financial Times - US homepage | 18 Nov 2008 | 2:08 pm Indications: U.S. stock futures point to mixed start after economic dataU.S. stock futures on Tuesday pointed to a mixed start, with cheer over technology giant Hewlett-Packard Co.’s growing profit helping offset ongoing evidence of the economy’s deterioration.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:08 pm Wall St nervous despite HP earnings surpriseWall Street stocks were set to extend their run of losses to three straight sessions as investors remained nervous ahead of key executive testimony from the nation's carmakersSource: Financial Times - US homepage | 18 Nov 2008 | 2:06 pm October producer prices fall by record 2.8 percent (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 2:06 pm Ex-American Airlines chief says downturn can save carriersA severe downturn could be just the opportunity the airline sector needs to clean up its act once and for all, said Robert Crandall, the former chief executive of AMR Corp.’s American Airlines and a veteran of the industry, on Tuesday.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:05 pm Hewlett-Packard brightens profit pictureShares of Hewlett-Packard rally more than 13% in premarket trading Tuesday after the tech giant said it would beat Wall Street’s targets for its fiscal fourth quarter and for 2009, marking a rare move among big-cap names in the current economic environment.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:05 pm Burberry shares hit six-year lowBurberry's shares fall to their lowest level in six years after the luxury brand issues a profit warning.Source: BBC News | Business | World Edition | 18 Nov 2008 | 2:04 pm Stocks headed for a dropU.S. stocks appeared set for an opening decline Tuesday, as investors remained worried about the fate of the Big Three automakers and awaited testimony from Treasury Secretary Henry Paulson about the government's $700 billion financial bailout plan.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 2:01 pm Transocean's Move to Switzerland Pays Off for Note Holders (RIG)
The move triggers an obligation for Transocean to convert three 30-year senior convertible notes issues into cash and shares. The notes were issued in December 2007 for an aggregate amount of $6.6 billion, most of which went to pay for the merger with GlobalSantaFe. The bookrunners for the notes issues were Goldman Sachs (NYSE:GS) and Lehman Brothers, along with a few other of the usual suspects. According to the company's press release, the conversion rate for note holders is 5.931 shares of Transocean stock for each $1,000 of principal held, about $168.61/share. Transocean's total obligation for each $1,000 in principal is around $440. Transocean's latest quarterly report shows long-term debt of nearly $13.9 billion and available cash and equivalents of about $1.2 billion. The stock is trading more than 55% below its 52-week high of $163/share. That number is not likely to improve today.
Paul Ausick Source: 24/7 Wall St. | 18 Nov 2008 | 2:01 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:01 pm Bonds rise on more conservative betsTreasury prices moved higher Tuesday with the expectation that more dour economic data will again lead investors to shy away from stocks and commodities.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 2:01 pm NewsWatch: U.S. stock futures point to more losses; Yahoo, H-P climbU.S. stock futures dropped Tuesday as investors continued to adjust to the swift deterioration in the economy, though a surprisingly early report of a growing profit at Hewlett-Packard carried indexes off early lows.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 2:00 pm Saks posts bigger than expected 3Q loss (AP)AP - Luxury retailer Saks Inc. reported a wider-than-expected loss in the third quarter in contrast to a profit a year ago, as its affluent customers slashed spending as the financial meltdown has led to massive job losses on Wall Street and shrinking stock portfolios.Source: Yahoo! News: Business | 18 Nov 2008 | 1:58 pm HP preliminary results beat, shares jumpNEW YORK (Reuters) - Hewlett-Packard Co posted stronger-than-expected preliminary quarterly results and gave a full-year profit forecast that also beat Wall Street estimates despite the weak global economy, sending shares up 11 percent.Source: Reuters: Business News | 18 Nov 2008 | 1:58 pm Cliffs, Alpha Scrap Merger Plans (CLF, ANR)Two weeks ago, Cliffs Natural Resources (NYSE:CLF) pushed out its shareholder vote on a merger with Alpha Natural Resources (NYSE:ANR) to mid-December. Alpha promptly filed suit, seeking to force Cliffs to stick to its agreed upon date of November 19th. It doesn't matter anymore. The two companies issued a press release after the market closed yesterday announcing that the merger agreement was terminated. The companies cited "the current macroeconomic environment, uncertainty in the steel industry, shareholder dynamics and risks and costs of potential litigation" as reasons for the termination. No kidding. The value of the deal had dropped by about 60%, and major shareholders in Cliffs had been fighting the deal ever since it was announced. Cliffs shares jumped nearly 6% in after-hours trading on the news, while Alpha shares dropped more than 7%.
Paul Ausick Source: 24/7 Wall St. | 18 Nov 2008 | 1:58 pm October producer prices fall by record 2.8 percentWASHINGTON (Reuters) - Producer prices declined by a record 2.8 percent in October after energy prices slumped, government data on Tuesday showed, but a key measure of core inflation at the farm and factory gate rose by more than forecast.Source: Reuters: Business News | 18 Nov 2008 | 1:57 pm Search is on for new Yahoo CEO after Yang steps downSAN FRANCISCO/NEW YORK (Reuters) - Yahoo Inc said Jerry Yang will step down as chief executive as soon as the board finds a replacement, sending its shares up 4 percent on hopes his departure will clear the way for a deal with Microsoft.Source: Reuters: Business News | 18 Nov 2008 | 1:55 pm Corning Lowers Lowered Lows (GLW)
Flaws noted that panel makers (particularly in Taiwan) have continued to reduce capacity in the second half of this quarter due to weakening retail demand for LCD TV's and desktop monitors. What is sad, and what is a show that things are continuing to get worse is that this is just a few weeks after disappointing guidance after its last earnings. The new guidance is "below" the $1.1 to $1.2 billion in revenues previously offered and "at the low end of below" the $0.20 to $0.28 EPS range previously offered. While the company said it is well positioned and still believes its markets are strong, the quote pretty much says it all: “The latest economic news indicates that we may be facing a prolonged global recession." H-P might be a standout, but there are serious issues out there in technology land for PC's and consumers. Corning shares are down almost 7% at $8.38 pre-market. Its 52-week trading range is $8.03 to $28.07.
Jon C. Ogg Source: 24/7 Wall St. | 18 Nov 2008 | 1:55 pm October wholesale prices plunge record 2.8%Wholesale prices plunged a record amount in October as energy prices fell by the largest amount in 22 years.Source: L.A. Times - Business | 18 Nov 2008 | 1:55 pm Futures Movers: Oil futures trade near $55 a barrelNEW YORK (MarketWatch) -- Oil futures traded near $55 a barrel early Tuesday, as concerns about weakening energy demand amid a global economic slowdown continued to dominate investor sentiment.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 1:54 pm Dow, Nasdaq turn positive on HP results, outlook (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 1:53 pm Dow, Nasdaq turn positive on HP results, outlookNEW YORK (Reuters) - Dow and Nasdaq stock index futures turned positive on Tuesday afterSource: Reuters: Business News | 18 Nov 2008 | 1:53 pm Economic Report: October producer prices off a record 2.8%; gasoline plummetsU.S. producer prices fall a record 2.8% in October, the most since 1947, as gasoline prices plummet 24.9%, the Labor Department says.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 1:51 pm IMF says more countries seek help, banks struggleLONDON (Reuters) - The International Monetary Fund (IMF) said on Tuesday the number of countries seeking help to cope with a spreading economic crisis was growing every day.Source: Reuters: Business News | 18 Nov 2008 | 1:50 pm IMF says more countries seek help, banks struggle (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 1:50 pm Movers & Shakers: Tuesday's biggest gaining and declining stocksStocks expected to move significantly in Tuesday’s trading include the retailers Home Depot, Mothers Work and Pier 1, as well as Boise, Divx, Eastman Kodak, Ford, Sigma Designs and Yahoo.Source: MarketWatch.com - Top Stories | 18 Nov 2008 | 1:46 pm HP preliminary results beat, shares jumpNEW YORK (Reuters) - Hewlett-Packard Co posted stronger-than-expected preliminary quarterly results and gave a full-year profit forecast that also beat Wall Street estimates despite the...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:44 pm HP preliminary results beat, shares jump (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 1:44 pm Time to raise the gas taxThe big game in Washington these days consists of running around dealing with the problems of the Detroit Three automakers, formerly the Big Three.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 1:42 pm October producer prices fall by record 2.8 percentWASHINGTON (Reuters) - Producer prices declined by a record 2.8 percent in October after energy prices slumped, government data on Tuesday showed, but a key measure of core inflation at theSource: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:38 pm Barclays bows to investor pressure on capital raisingThe bank is changing the terms of its £7bn capital raising so that investors can participate in the issue of a security paying a 14% coupon, and its executive directors have waived any annual bonus for 2008.Source: Financial Times - US homepage | 18 Nov 2008 | 1:37 pm Wholesale prices plungeWholesale prices fell more than expected in October as energy costs continued to decline, government figures showed Tuesday.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 1:37 pm Carrefour stock gains after change of chief executiveShares in French retailing giant Carrefour gained ground on Tuesday, in contrast to a sharp fall on the overall Paris market, following the replacement of its chief executive.Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:34 pm October wholesale prices plunge record 2.8 percentWholesale prices plunged a record amount in October as energy prices fell by the largest amount in 22 years. The Labor Department says wholesale prices dropped by 2.8 percent in October,Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:33 pm Saks reports bigger-than-expected 3Q lossLuxury retailer Saks says it lost more than expected in the third quarter as its affluent customers slashed spending amid massive job losses on Wall Street and turmoil in the stock market.Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:33 pm HP shares soar after solid 4Q outlookHewlett-Packard says it expects fiscal fourth-quarter results above Wall Street's expectations despite the bad economy. The news is sending the company's shares up sharply in premarket...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:30 pm Hewlett-Packard Tries To Save Tech Stocks (HPQ, DELL, IBM, INTC, MSFT)
What is perhaps even more important than just the last quarter is that CEO Mark Hurd is project earnings all the way out one year and that guidance is more than acceptable for today's climate. H-P's projected range out to Fiscal Oct-2009 is now being put in a range of $3.88 to $4.03 EPS. First Call has estimates at $3.85. This even has weaker tech stocks and competitors trading higher initially:
Hewlett-Packard (HPQ) stock is now up 12% at $33.00 pre-market. Be advised that H-P has been a standout stock. We have already seen massive evidence elsewhere from key technology makers and key technology sellers from the high-end to the low-end that this economy is not leaving technology immune. H-P has also made much of its stake over the last two years and more at the expense of some of its rivals. Dell also reports earnings this Thursday, and we have seen several downgrades and negative sentiment into this event. What may be positive at H-P really may be at the expense of peers and competitors.
Jon C. Ogg Source: 24/7 Wall St. | 18 Nov 2008 | 1:29 pm Home Depot profit falls, but beats Street viewATLANTA (Reuters) - Home Depot Inc reported a 31 percent drop in quarterly profit on Tuesday as consumers put off big-ticket projects amid a deepening economic crisis.Source: Reuters: Business News | 18 Nov 2008 | 1:28 pm Rock arrears due to 125% loansArrears on controversial home loans of up to 125% of the value of a property are driving Northern Rock's repossession rate.Source: BBC News | Business | World Edition | 18 Nov 2008 | 1:22 pm Banks lead world markets lowerWorld stock markets fell Tuesday ahead of expected further losses on Wall Street amid gloom about propects for the world economy and the banking system. The FTSE 100 index of leading...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:21 pm Ford CEO denies mismanagementRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 1:20 pm Pepsi Bottling to slash 3,000 jobsRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 1:18 pm Ford abandons Mazda control with 20 percent stake saleTOKYO (Reuters) - Ford Motor Co, scrambling for cash as the U.S. Big Three automakers struggle to stay alive, will end 12 years of control of Mazda Motor Corp through the sale of a 20 percent stake in the Japanese carmaker for around $540 million.Source: Reuters: Business News | 18 Nov 2008 | 1:18 pm HP preliminary fourth quarter results reassure(Reuters) - Hewlett-Packard Co announced on Tuesday its preliminary fourth quarter results and provided its 2009 outlook. Highlights:Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:16 pm Carrefour chief Duran to leaveLuis Duran is to stay until end of year, when Lars Olofsson, executive vice-president for strategic business units, marketing and sales for Nestlé, will take overSource: Financial Times - US homepage | 18 Nov 2008 | 1:12 pm Pepsi Bottling to cut jobs, trims forecastNEW YORK (Reuters) - The Pepsi Bottling Group Inc announced restructuring plans on Tuesday that would eliminate some 3,150 jobs and cut its forecast for full-year earnings due to weaker...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:06 pm Pepsi Bottling to cut jobs, trims forecastNEW YORK (Reuters) - The Pepsi Bottling Group Inc announced restructuring plans on Tuesday that would eliminate some 3,150 jobs and cut its forecast for full-year earnings due to weaker foreign currencies.Source: Reuters: Business News | 18 Nov 2008 | 1:06 pm Study puts a total on diabetes cost: $218 billionAs diabetes is rapidly becoming one of the world's most common diseases, its financial cost is mounting, too, to well over $200 billion a year in the U.S. alone. A new study, released...Source: Infocious RSS raw feed - channel BNewsBusiness | 18 Nov 2008 | 1:02 pm Medtronic quarterly net profit falls 14 percentCHICAGO (Reuters) - Medtronic Inc said on Tuesday quarterly net profit fell 14 percent, hurt by charges for a legal settlement and inventory writeoffs.Source: Reuters: Business News | 18 Nov 2008 | 1:02 pm Sign of a Bottom?People have been calling a bottom to the financial crisis for a long time, even before it fully erupted. Remember Charles Prince’s “We’re still dancing” comment in July 2007?So one has a right to be skeptical when a sign of a comeback emerges. Yet a bright green light has flashed in a subprime skeptic’s new-found faith in mortgages. John Paulson, the hedge fund manager who reaped huge profits from betting against mortgages and mortgage-backed securities over the last two years is now buying those same securities. Paulson, who took home an astonishing $3.7 billion in pay last year, indicated late last summer that he was preparing to take long positions in mortgage securities and financial institutions. He started buying troubled residential mortgage-backed securities last week, when prices fell after the Treasury Department announced that Tarp would not be buying toxic assets as originally planned, Henny Sender of the Financial Times reports. Paulson has begun a new fund, the Paulson Recovery Fund, to take advantage of deeply discounted mortgage-backed securities. And Sender says he has taken steps to start a new real estate fund. His track record of late has been spectacular. The Paulson Advantage Plus fund is up 29 percent for the year. A weekly performance review by HSBC earlier this month listed four Paulson funds among its Top 20 performers. Going long on mortgage securities may be a smart investment, but it is also a savvy political move as Washington weighs increased regulation of hedge funds. The Los Angeles Times relates a meeting last month between Treasury Secretary Henry Paulson (no relation to the hedge fund manager) and hedge fund managers. Paulson told them that it was time to step up the regulation of hedge funds, a reversal of his previous position. The hedge fund managers, the paper says, "were stunned. One manager recalled muttering as he walked out: ‘What happened to the Hank Paulson we knew?’ " Related Links Worst of Times Larry Summers When Stabilization Isn't Stimulus Source: Portfolio.com: Top 5 | 18 Nov 2008 | 1:00 pm Treasury's Paulson say no plans to further tap TARP funds: WSJNEW YORK (Reuters) - The U.S. financial system is stabilizing and the government does not plan to tap the remaining $410 billion of a financial rescue fund unless a further need arises, Treasury Secretary Henry Paulson told the Wall Street Journal in an interview published on Tuesday.Source: Reuters: Business News | 18 Nov 2008 | 12:57 pm Big Oil: We told you soIt would be tempting to say they told us so.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 12:38 pm Detroit bailout: 7 key questionsCongress is set to begin a heated debate on whether Detroit's Big Three automakers -- General Motors, Ford Motor and Chrysler LLC -- will be next in line for a federal bailout.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 12:33 pm Early Bird Analyst Upgrades (BJS, CHS, FSLR, GNCMA, MDTH, PCS)These are some of the top early bird upgrades or positive calls from analysts on Wall Street which we have seen early this Tuesday morning:
Jon C. Ogg Source: 24/7 Wall St. | 18 Nov 2008 | 12:33 pm Early Bird Analyst Downgrades (ASTI, KO, DT, ESLR, K, PEP, TSL)
Jon C. Ogg Source: 24/7 Wall St. | 18 Nov 2008 | 12:29 pm Laird issues profit warning after sudden sales downturnShares in Laird today plummeted 36.5 per cent to a 10-year low after the electronics company warned that a sudden trading downturn will hit sales and profits in the fourth quarter.Source: Latest Business News from Times Online | 18 Nov 2008 | 12:20 pm What Yahoo should do post Jerry YangSource: Business and financial news - CNNMoney.com | 18 Nov 2008 | 12:18 pm Ford sells Mazda stake to raise $540mFord Motor is to raise around $540m of desperately needed cash by selling most of its stake in Mazda, its long-time Japanese affiliate and manufacturing partnerSource: Financial Times - US homepage | 18 Nov 2008 | 12:13 pm Consumer inflation falls to 4.5%Official figures show that UK inflation fell from 5.2% to 4.5% in October, as oil prices and transport costs fell.Source: BBC News | Business | World Edition | 18 Nov 2008 | 12:12 pm Global gloom depresses oil priceThe price of oil drifts below $55 a barrel, amid increasing worries over falling demand and slowing global growth.Source: BBC News | Business | World Edition | 18 Nov 2008 | 12:09 pm Search is on for new Yahoo CEO after Yang steps down (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 12:03 pm Home Depot tepid about economyHome improvement retailer The Home Depot Inc. delivered an unenthusiastic reading on the nation's economic climate Tuesday, as sales continued to decline amid ongoing weakness in the housing, construction and retail sectors.Source: Business and financial news - CNNMoney.com | 18 Nov 2008 | 12:03 pm China moves to stem mass layoffsChinese companies are told they need permission to fire more than 40 workers, in a sign of worry over rising unemployment.Source: BBC News | Business | World Edition | 18 Nov 2008 | 11:59 am Lonmin closes mines and puts jobs on the blockLonmin, the platinum miner that rebuffed a takeover from Xstrata earlier this year, is to cut jobs at its head office in London and close mines in South Africa, in the face of plunging platinum prices and falling productivity.Source: Latest Business News from Times Online | 18 Nov 2008 | 11:38 am Carrefour ousts chief executiveCarrefour, one of the world's larger retailers, announces that it will replace its chief executive in January next year.Source: BBC News | Business | World Edition | 18 Nov 2008 | 11:37 am A Bright Light From Home Depot (HD)
The home building supply company reported reported fiscal 2008 third quarter net earnings of $756 million, or $.45 per diluted share, compared with $1.1 billion, or $.60 per diluted share, in the same period last year. Sales for the third quarter totaled $17.8 billion, a 6.2% decrease from last year's period. Comparable store sales fell 8.3%. For the rest of the year, HD said that fiscal 2008 sales could be down as much as 8%. The firm blamed the housing market and soft economy. Stopping to reflect on the housing market and lack of available consumer credit, the figures are remarkably good. With housing prices off 20% or more in many regions and access to home equity lines and credit card capital tightened, the consumer should be doing almost no home improvement work. The numbers from Home Depot indicate that either the company is remarkably well-run and nearly perfect at pricing its products, or it shows that consumers still have a little gas left in the tank, especially when it comes to their houses. If you can afford something, you might as well keep it in good shape, probably to the exclusion of spending money elsewhere. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Nov 2008 | 11:25 am Premier Foods pays £5m to delay bank debt testPremier Foods, the UK food manufacturer, will pay its banks nearly £5 million to delay a test to its banking covenants until next spring and confirmed today that it will scrap its dividend payment.Source: Latest Business News from Times Online | 18 Nov 2008 | 11:23 am US Analysts Still Hate "Sell" Ratings
New evidence has come up that "sell" ratings are scarce as hen's teeth, at least in the US. Research from Thomson Reuters StarMine shows that 18% of European analysts have "sell" ratings or the equivalent on stocks that they cover. The number in the US is less than 7%. According to the FT, "Equity research departments around the world have become much more bearish since the start of the year, but US analysts remain markedly more bullish on stocks than peers elsewhere." Relative to economies and corporate earnings in other regions, there is no reason for analysts in the US to be more willing to support the firms that they cover. It does investors a tremendous disservice. And, it makes the analysts look like fools. There has never been an adequate explanation of why American analysts seem to love the companies that they cover so ardently. Some will say that putting poor ratings on companies takes away access to management. Some probably still think they are helping the investment bankers at their companies by keeping relationships which could lead to business. Or, perhaps Wall St. researchers don't have guts to have the corporations that they cover give them a hard time. By all rights, almost every stock in the market should be a "sell." But, in a world full of layoffs, why bite the hand that feeds you? Douglas A. McIntyre Source: 24/7 Wall St. | 18 Nov 2008 | 11:10 am The BoxThe BBC-branded container prepares to leave ShanghaiSource: BBC News | Business | World Edition | 18 Nov 2008 | 10:55 am Bank Execs All Sacked: Firings Move To Tech Industry (ORCL)(SYMC)(AMD)(EBAY)(YHOO)(INTC)(HPQ)(JAVA)
Silicon Valley is started to look like Wall St. With share prices falling and earnings moving into the red, that comparison becoming even more apt. And, it makes sense. Over the last three months, share in Symantec are down 55%. JAVA is off even more. There are credible rumors that the heads of Motorola (MOT) and Sprint (S) may simply have their companies sold out from under them. What has happened is that in tech, like in banking before it, is a list of "haves" and "have nots" has developed. The customers and resources sit with firms like Oracle (ORCL) Intel (INTC), and HP (HPQ) and they suck up the market share. They have the R&D capital. They have the cash on their balance sheets. In a good environment, the dichotomy was less pronounced and it meant less. There was less reason to complain about management at tech companies when IT spending was moving up rapidly. Now, the weakest companies do not just need to be reorganized, they need to be saved. Some carry enough debt and have dramatic enough drops in earnings that they are at real risk for failure. Tech was supposed to be somewhat recession-proof. That makes the sins of the stragglers all the more glaring. Financial executives can look for a little relief. The guillotine has moved to the West Coast. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Nov 2008 | 10:48 am Macquarie bank profit drops 43%Australia's biggest investment bank, Macquarie Group posts a sharp drop in its first-half profit but said it did not need to raise cash.Source: BBC News | Business | World Edition | 18 Nov 2008 | 10:33 am Yang Steps Down At Yahoo! (YHOO): No Candidates To Step In
The issue is not whether he was going, but who was coming. Even Microsoft is having trouble picking someone to run its troubled internet unit. Good people who can run beat-up portals must be hard to come by. Of course, the next round of speculation about Yahoo!'s future has been set off before the search for a new CEO can begin. Carl Icahn, who sits on the Yahoo! board, and a number of large outside investors, would like the company to be sold to Microsoft even though the price may only be $14 or $15, nowhere near the $33 which was on the table less than a year ago. There are no logical candidates to succeed Yang. If there were, those people would be mentioned as the prospects for running MSN or a merged Yahoo!/AOL. Over the last six years, Yahoo!, MSN, and AOL have eaten through close to dozen CEOs. At Yahoo!, it has been Koogle, Semel, and Yang. AOL has had two CEOs in less than two years. Steve Ballmer goes through internet bosses like Kleenex. The internet industry does not appear to have any well-regarded turnaround specialists. The executives under Yang, especially COO Sue Decker, are viewed as part of the problem. The new CEO of AOL, Randy Falco, is a former network executive. Ad revenue at the Time Warner (TWX) portal is dropping. The big portals are in a strange position. They are supposed to be taking marketing revenue away from traditional media. That is certainly not happening at a rapid rate. There are estimates that online display ad revenue may go down next year. Portals also face Google (GOOG) which has a marketing system that is viewed as the most efficient on the internet. Its revenue is as large as that of the all the large portals combined. Perhaps the internet talent problem is not a dearth of qualified candidates. It may be that the best managers don't think the core problems of the portals can be fixed. Who wants to be Sisyphus? Douglas A. McIntyre Source: 24/7 Wall St. | 18 Nov 2008 | 10:19 am Wolseley lays off 2,300 as UK job losses mountWolseley, the troubled building materials supplier, today announced it will axe a further 2,300 workers, bringing the total number of British job losses to over 20,000 in less than a week.Source: Latest Business News from Times Online | 18 Nov 2008 | 10:16 am China stocks tumble on profit-taking (AP)
Source: Yahoo! News: Business | 18 Nov 2008 | 10:09 am CCB shares tumble as BofA raises stakeChina Construction Bank shares fell sharply after Bank of America exercised a call option to raise its stake in the Chinese lender at a 32% discount to market priceSource: Financial Times - US homepage | 18 Nov 2008 | 9:53 am Icap boosts profits by 8% in turbulent marketsMichael Spencer, chief executive of Icap, the world's biggest bonds broker, today moved to reassure investors of the company's strong prospects after sharp falls in its share price over the past fortnight.Source: Latest Business News from Times Online | 18 Nov 2008 | 9:42 am Rate cut hopes rise on record inflation fall to 4.5%Inflation tumbled at a record pace in October to 4.5 per cent, down from the 16-year peak of 5.2 per cent in September, official figures show.Source: Latest Business News from Times Online | 18 Nov 2008 | 9:42 am Carphone mulls TalkTalk spin-offCarphone Warehouse confirms it is considering plans to spin off its TalkTalk broadband internet business.Source: BBC News | Business | World Edition | 18 Nov 2008 | 9:26 am Ford set to sell 20% Mazda stakeTroubled US carmaker Ford Motor is selling a 20% stake in Japan's carmaker Mazda Motor, the Japanese company has said.Source: BBC News | Business | World Edition | 18 Nov 2008 | 9:24 am Congress takes first step on automaker bailout (Reuters)
Source: Yahoo! News: Business | 18 Nov 2008 | 8:44 am ABI issues warning over Barclays’ £7bn capital planA lobby group for the City's most powerful fund managers has issued its most serious "red top" alert on Barclays' £7 billion capital-raising plans, despite several last-minute concessions made by the bank.Source: Latest Business News from Times Online | 18 Nov 2008 | 8:27 am Santa Ana leads a bittersweet real estate boomletThe Orange County city is flooded with cheap foreclosures, giving people previously priced out of the market the opportunity to buy homes that others have been forced to leave. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Stocks open lower on more economic woesNEW YORK -- The selling on Wall Street continued today as investors digested more signs of economic weakness, including a huge round of layoffs in the financial sector.Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Citigroup to cut 52,000 more jobsHalf the cuts will come through layoffs and the other half through sales of individual business units, a company spokeswoman says.Fallout from the financial crisis is walloping the people on Wall Street who created it -- and many who didn't. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Insurers likely to weather California firestormIndustry observers say damage payouts shouldn't pose any difficulty, but the weak global economy could lead to eventual premium increases. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Gasoline prices tumble in California, U.S.The average pump price in the state falls 18.1 cents to $2.374 a gallon, the lowest since January 2006.Pump prices tumbled again around the nation in the last week, with the U.S. average cost falling to its lowest level in nearly four years, the Energy Department said Monday. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Amid financial crisis, a conversion for Henry PaulsonAs Treasury secretary, the former Wall Street CEO reverses field on regulation, which he now calls 'necessary.'Treasury Secretary Henry M. Paulson had a stern message for more than two dozen of the nation's most powerful hedge fund managers gathered in the third-floor conference room near his office. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am FDIC chief Sheila Bair could have role on Obama teamHer proposal for mortgage aid puts her at odds with the Bush administration. But it might earn her a place in the next regime.Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., is one of the few government officials whose reputation has actually improved during the financial crisis. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Santa Ana leads a bittersweet real estate boomletThe Orange County city is flooded with cheap foreclosures, giving people previously priced out of the market the opportunity to buy homes that others have been forced to leave.Angelica Maciel used to drive through the oak-shaded streets of Santa Ana wondering if she'd ever be able to buy one of the charming little bungalows she so admired. ¶ But the real estate frenzy had overtaken even this hardscrabble Orange County city, and prices kept going up. ¶ Not any more. ¶ Last month Maciel paid a bit under $270,000 for a two-bedroom, 910-square-foot house. It had previously sold for $504,000 in 2006 and was foreclosed upon in July. ¶ All told, 357 homes in Santa Ana were in escrow in October, almost 10 times the volume of a year ago. ¶ They're selling fast because they're cheap. They're cheap because there have been so many foreclosures. ¶ About 80% of houses for sale at the end of October in the city had been foreclosed upon, were in default or were listed for sale at less than their mortgage amount -- more than any other city in Orange County, according to an analysis by broker Steven Thomas. ¶ But as one of the areas hardest hit by foreclosures, this heavily Latino, blue-collar town is leading a bittersweet boomlet, as people previously priced out of the market move into homes that others have been forced to leave. ¶ There's still plenty of suffering, and more on the horizon. An additional 261 Santa Ana houses went into default or were foreclosed upon last month, according to ForeclosureRadar, a seller of default data. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am SEC files insider-trading charges against Mark CubanThe lawsuit could imperil the Internet entrepreneur's bid to buy the Chicago Cubs.Mark Cuban, the outspoken Internet entrepreneur and owner of the Dallas Mavericks basketball team, was accused by federal regulators Monday of illegal insider trading, an allegation that could jeopardize his chances of buying the Chicago Cubs baseball team. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am SEC files insider-trading charges against Mark CubanThe lawsuit could imperil the Internet entrepreneur's bid to buy the Chicago Cubs. Mark Cuban, the outspoken Internet...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Domino's pizza at the click of a TiVo buttonA new service allows TiVo subscribers to order food through their set-top boxes.Coming soon to a couch near you: dinner that you've ordered by picking up the remote. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Democrats propose $25 billion in loans for carmakersThe package would be in addition to a $100-billion stimulus proposal, but Republicans -- and time -- are not on their side. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Democrats propose $25 billion in loans for carmakersThe package would be in addition to a $100-billion stimulus proposal, but Republicans -- and time -- are not on their side.Leading Democrats in Congress unveiled plans Monday to help financially troubled U.S. automakers with $25 billion in emergency loans as lawmakers prepared for a showdown over expanding the government's role in shoring up the economy. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Yahoo CEO Jerry Yang to step downHe had irked shareholders by letting would-be partners Microsoft and Google slip away.Unable to rescue the Internet giant he co-founded from its worst decline since the dot-com bust, Yahoo Inc. Chief Executive Jerry Yang said Monday that he planned to step down as soon as he could find a successor. Source: L.A. Times - Business | 18 Nov 2008 | 8:00 am Gasoline prices tumble in California, U.S.The average pump price in the state falls 18.1 cents to $2.374 a gallon, the lowest since January 2006. Pump prices...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Yahoo CEO Jerry Yang to step downHe had irked shareholders by letting would-be partners Microsoft and Google slip away. Unable to rescue the Internet...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Domino's pizza at the click of a TiVo buttonA new service allows TiVo subscribers to order food through their set-top boxes. Coming soon to a couch near you:...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Citigroup to cut 52,000 more jobsHalf the cuts will come through layoffs and the other half through sales of individual business units, a company spokeswoman says. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am FDIC chief Sheila Bair could have role on Obama teamHer proposal for mortgage aid puts her at odds with the Bush administration. But it might earn her a place in the next regime. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 18 Nov 2008 | 8:00 am Sir Stelios refuses to sign off easyJet's accountsSir Stelios Haji-Ioannou, the founder of easyJet, has ramped up his dispute with the low-cost airline's board by refusing to approve the company's annual accounts.Source: Latest Business News from Times Online | 18 Nov 2008 | 7:52 am Yahoo chief Yang to step downJerry Yang, co-founder of Yahoo, will step down from his position as chief executive officer as soon as a replacement has been appointed, the troubled internet company saidSource: Financial Times - US homepage | 18 Nov 2008 | 7:41 am Australian stocks: Market down over three per centMELBOURNE - The Australian share market has closed 3.5 per cent down at fresh four-year lows, wiping $34 billion from the value of the market following a weaker performance on Wall Street overnight. At the 1615 AEDT close, the...Source: New Zealand Herald - Business | 18 Nov 2008 | 6:58 am NZ stocks: Quiet day on sharemarketThe New Zealand sharemarket had a quiet day as investors waited on the sidelines to see how markets would fare in the financial crisis. The benchmark NZSX-50 closed down 27.32 points, or 0.99 per cent, to 2714.588 after opening...Source: New Zealand Herald - Business | 18 Nov 2008 | 6:46 am Currency: Dollar steady in days tradingThe New Zealand dollar remained steady against the greenback today. The NZ dollar was buying US55.05c at 5pm today, down slightly from US55.88c at 8am and US55.35c at 5pm yesterday. The kiwi remained steady between US54.70c...Source: New Zealand Herald - Business | 18 Nov 2008 | 6:07 am 6 Stocks With Improving Dividends (Screens)Jack Hough: Search for increasing dividends leads to GPS maker.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: Real EstateWhat you need to know about buying, selling and renting in this market.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: RetirementWhy now is the time to rethink your retirement plan. Plus: how to stretch your nest egg.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: The OverviewTimes are tough, but there are opportunities. How to get your financial house in order.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Quest Opportunity Value Is a Port in a Storm (Screens)The fund has been well-served by its hedge-fund-like flavor.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am 7 Ways to Protect Your Identity While Shopping (Deal of the Day)Holiday shopping opens a huge window of opportunity for ID thieves.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: Loans and CreditWhy navigating tricky changes in the borrowing world can be key to your future.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: BondsSome fixed-income investments can earn you as much as 10%.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am Rebuilding Your Wealth: InvestmentsHow to capitalize on future stock-market gains -- and still sleep well at night.Source: SmartMoney.com | 18 Nov 2008 | 5:00 am We'll keep expanding, says Charlie'sJuice company Charlie's Group said today it planned to keep expanding distribution in New Zealand and Australia to endure tough market conditions. The company, fronted by former All Black Marc Ellis, also said it would continue...Source: New Zealand Herald - Business | 18 Nov 2008 | 3:48 am Yahoo! chief Jerry Yang quits after turmoilJerry Yang, the chief executive of Yahoo!, is to step down as soon as the embattled internet search engine group finds a successor.Source: Latest Business News from Times Online | 18 Nov 2008 | 3:20 am Yahoo confirms: CEO Yang is goneSAN FRANCISCO - Yahoo co-founder Jerry Yang is stepping down as chief executive, ending a rocky reign marked by his refusal to sell the internet company to Microsoft for $47.5 billion - more than triple Yahoo's current market value. The...Source: New Zealand Herald - Business | 18 Nov 2008 | 3:16 am Rumours of newspapers' demise are rubbish - MurdochSYDNEY - Global media magnate Rupert Murdoch says doomsayers who are predicting the internet will kill off newspapers are "misguided cynics" who fail to grasp that the online world is potentially a huge new market of information-hungry...Source: New Zealand Herald - Business | 18 Nov 2008 | 2:30 am Yang's Yahoo No MoreJerry Yang, the embattled chief executive of the equally embattled search giant he helped found, will step down from his post as soon as Yahoo's board of directors is able to find a replacement.Once his successor is in place, Yang will return to the post of Chief Yahoo he held before assuming chief executive title at the behest of the board of directors last summer. In a memo to employees, complete with the omission of uppercase letters as is his email style, Yang said he "will always bleed purple," referring to the company's logo. "since taking on the ceo role, i have had an ongoing dialogue with the board about succession timing. thanks in large measure to your tireless efforts, we have created a more open, competitive yahoo! and we believe the time is now right to transition to a new ceo who can take the company to the next level."Despite attempts by Yang and chairman Roy Bostock to spin Yang's tenure at the helm as a success, it is difficult to see this announcement as anything but an end to a very ugly chapter for the struggling internet giant. After snubbing an attempted takeover by Microsoft earlier this year for $34 per share, Yang presided over Yahoo as its stock plummeted to just $10 per share. Talks with Google over a search deal and with Time Warner over its AOL division ultimately ended in failure. Yahoo is being forced to cut costs, and employees are bracing for layoffs amounting to at least 10 percent of the workforce next month. With Yang finally stepping down, all eyes will turn to his successor for hope that the company can either be rebuilt or attract a suitor like Microsoft again. According to Kara Swisher at AllThingsD.com, inside sources speculate that the new chief executive will almost certainly be recruited from outside the company. Yahoo said it has retained Heidrick & Struggles for the search. Some possible candidates Swisher proposes are News Corp.'s chief operating officer Peter Chernin, former AOL head Jon Miller, former eBay C.E.O. Meg Whitman, and former Yahoo C.O.O. Dan Rosensweig. Related Links Yahoo for Sale: Ballmer Says No Yang's Remorse Yahoo Shareholders Steaming As Share Price Hits 5-Year Low Source: Portfolio.com: Top 5 | 18 Nov 2008 | 2:00 am Fonterra warns of continuing market volatilityThe world's biggest dairy trader, Fonterra Co-operative Group, warned today of more volatility looming in global dairy prices. "It is clear that 2007-2008 has fundamentally changed market dynamics and volatility is more likely...Source: New Zealand Herald - Business | 18 Nov 2008 | 2:00 am After The Close - MondayGENENTECH (DNA), a biotech, said its drug Raptiva likely increases risk of a disease of the central nervous system. Shares fell.Source: Investor's Business Daily: BUSINESS | 18 Nov 2008 | 1:20 am Smaller, Longer-Lasting Heart Monitor Gets Medicare ApprovalCardioNet got a Halloween treat this year when the government set payment rates for its cardiac monitoring device.Source: Investor's Business Daily: BUSINESS | 18 Nov 2008 | 1:20 am In Brief - MondayTiVo (TIVO) said customers will be able to order Domino's Pizza (DPZ) using the TV service. TiVo climbed 2.6% to 6.01. Domino's rose 1% to 3.91.Source: Investor's Business Daily: BUSINESS | 18 Nov 2008 | 1:20 am Business Briefs - MondayCovidien tops, cuts sales outlook. The supplier of generic pharmaceuticals and medical products to hospitals said its Q4 EPS rose 15% to 73 cents,...Source: Investor's Business Daily: BUSINESS | 18 Nov 2008 | 1:20 am Trends & Innovations - MondayHDTV owners favor Blu-ray discsSource: Investor's Business Daily: BUSINESS | 18 Nov 2008 | 1:20 am Sales down at Postie Plus, but things picking up, says chief execPostie Plus Group said it had a good last quarter, despite lower sales, with margins up for the period. Total sales, excluding Arbuckles, were down 8.5 per cent in the period to October 31, but by October sales and margins picked...Source: New Zealand Herald - Business | 18 Nov 2008 | 1:20 am Citi cuts 52,000 more jobsCitigroup took radical action to cushion the blows of the financial turmoil and revive its flagging share price, announcing plans to axe 52,000 jobs, or one in seven employees, and slash costs by about $10bnSource: Financial Times - US homepage | 18 Nov 2008 | 1:18 am Mark Cuban accused of insider tradingMark Cuban, the billionaire entrepreneur and owner of the Dallas Mavericks basketball team, was accused of insider trading by US securities regulatorsSource: Financial Times - US homepage | 18 Nov 2008 | 1:00 am Westpac to raise $50m in five year bond issueWestpac has relaunched a five year bond issue aimed at retail investors to raise over NZ$50 million. The bond is set to have an interest rate of 142 basis points above the mid-swap rate, Kanganews repSource: New Zealand Herald - Business | 18 Nov 2008 | 12:30 am House sales plummet by record amountHouse sales volumes fell by a record amount in the first half of 2008, a report by economic consultants Infometrics shows. Findings released today show property sales volumes slumped 44.3 per cent compared to the same period in...Source: New Zealand Herald - Business | 18 Nov 2008 | 12:30 am Bondholders urged to take investment cutHeavily indebted companies owned by private equity firms, including Harrah's Entertainment and Realogy, are asking their bondholders to accept a big cut in the value of their investments or risk falling behind other creditors in getting repaidSource: Financial Times - US homepage | 18 Nov 2008 | 12:03 am Democrats fight for carmakers to share $700bn$Democratic lawmakers were gearing up yesterday to force through legislation to allow American car manufacturers and car-parts makers access to the $700 billion ($£465.6 billion) bank bailout fund, along with stringent conditions.Source: Latest Business News from Times Online | 18 Nov 2008 | 12:00 am Mark Cuban accused of insider tradingThe SEC has charged Mark Cuban, the billionaire owner of the Dallas Mavericks, with insider trading. His fellow owners in the NBA probably aren't surprised. Washington Bureau Chief John Dimsdale has the story.Source: Marketplace | 17 Nov 2008 | 11:23 pm Dudemaine Simplifies Ducasse, Quint's Violin, MOMA TributeSource: Bloomberg - All Podcasts | 17 Nov 2008 | 10:36 pm VIX Index of U.S. Stock Option Prices Advances 4.3% to 69.15Source: Bloomberg - All Podcasts | 17 Nov 2008 | 10:26 pm Beller Recommends Archive, Search Directory at ETF.comSource: Bloomberg - All Podcasts | 17 Nov 2008 | 10:22 pm NABE's Varvares Sees Unemployment at 7.5% in 2009Source: Bloomberg - All Podcasts | 17 Nov 2008 | 9:36 pm UBS's Magnus Sees Decline in `Working Age People'Source: Bloomberg - All Podcasts | 17 Nov 2008 | 8:48 pm Governors Crist, Sanford Split on Republican Path to SuccessSource: Bloomberg - All Podcasts | 17 Nov 2008 | 8:22 pm Michael Holland of Holland & Co. Sees `Classic Bear Market'Source: Bloomberg - All Podcasts | 17 Nov 2008 | 8:09 pm Seizing an opportunity in a crisisA big problem with the bad mortgages banks are holding is that nobody knows what they're worth. But for some Denver entrepreneurs that situation spells opportunity. New York Bureau Chief Amy Scott reports.Source: Marketplace | 17 Nov 2008 | 7:45 pm What I'm Doing: Avoiding my portfolioDan Ariely, professor of behavioral economics at Duke University, caught sight of his personal portfolio recently. In our latest "Here's what I'm doing," he tells how he's vowed not to do that again.Source: Marketplace | 17 Nov 2008 | 7:45 pm Inflation in the '80s and the crisis todayAs awful as this financial crisis is, at least inflation's been kept at bay. Kai Ryssdal talks with Newsweek and Washington Post columnist Robert Samuelson about a time when that wasn't the case.Source: Marketplace | 17 Nov 2008 | 7:45 pm Inaugural visitors face premium pricesWith massive crowds expected for Barack Obama's inauguration, prices for tickets and hotel rooms are soaring. Nancy Marshall Genzer reports on a D.C.-area resident and a ticket seller who are looking to cash in.Source: Marketplace | 17 Nov 2008 | 7:45 pm Bush making sure his new rules stickPresident Bush is spending his final days pushing through resolutions on everything from endangered species to the Family Medical Leave Act. Steve Henn reports.Source: Marketplace | 17 Nov 2008 | 7:45 pm GM and the Chapter 11 debateThose who think bankruptcy makes sense for GM say the company needs to revamp and slim down. Others doubt it will help. Ashley Milne-Tyte reports.Source: Marketplace | 17 Nov 2008 | 7:44 pm Are job cuts the way out for Citigroup?After Citigroup finishes making the 50,000 job cuts just announced, the nation's second largest bank will have shrunk by 20% this year. Jeremy Hobson looks at the company's remaining options.Source: Marketplace | 17 Nov 2008 | 7:44 pm Samson's Lewis Sees `Transitional Period' for Bonds, CurrenciesSource: Bloomberg - All Podcasts | 17 Nov 2008 | 6:19 pm Standard Chartered's Minikin Sees 1% U.K. Interest Rate in 2009Source: Bloomberg - All Podcasts | 17 Nov 2008 | 6:16 pm De Grauwe Sees `Danger' in Investment Banks as Commercial BanksSource: Bloomberg - All Podcasts | 17 Nov 2008 | 5:24 pm Don't Mess With MammaMark Cuban is a lot of things. He's a billionaire internet entrepreneur, owner of the Dallas Mavericks, chairman of HDNet, and a Dancing With the Stars loser. And now the Securities and Exchange Commission would like to add one more descriptor for the outspoken investor: insider trader.
Cuban wrote about it again after he sold the shares, and he referenced the offering at the center of the S.E.C.'s charges. "Then the company did a P.I.P.E. financing. I'm not going to discuss the good or bad of P.I.P.E. financing [private investment in a public entity] other than to say that to me it's a huge red flag and I don't want to own stock in companies that use this method of financing. Why? Because I don't like the idea of selling in a private placement, stock for less than the market price, and then to make matters worse, pushing the price lower with the issuance of warrants. So I sold the stock…I'm glad I sold my stock."Is Cuban still glad he sold? So far, there have been no updates on Cuban's blog today, but he's never been known for his silence. Stay tuned.
UPDATE: Mark Cuban responds. “I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.” Related Links Google Extends Web Search Lead Chrome: Why Google Fears Microsoft Google to Microsoft: Game On Source: Portfolio.com: Top 5 | 17 Nov 2008 | 5:00 pm Shrinking CitiCutting 50,000 jobs is a curious way to improve employee morale, but for Vikram Pandit it is a last-ditch effort to turn Citigroup around.At a "town hall meeting" to rally the troops, the giant bank said that it would eliminate 50,000 jobs, or about 14 percent of the workforce as of the end of September. It also plans to cut expenses by 20 percent and to continue to reduce assets. The cuts are a bold step by an executive who has been criticized in some quarters for moving too slowly and too cautiously. Since taking over last December, Pandit has moved to cut back the bank's risky assets and to raise capital. The management ranks have been reshuffled and costs were already being cut. In the most recent quarter, Citigroup eliminated 11,000 jobs and shed some $50 billion in assets. But now Pandit has sharply raised the ante. The pressure on him grew last week, when Citigroup's stock price sank into the single digits for the first time since the financial colossus was created in 1998. Over the last four quarters, the bank has lost more than $20.2 billion. Even in good times, Citigroup was stumbling under its own weight, suffering from high costs, a lack of coordination among operations, and underinvestment in technology and businesses. The collapse of the subprime mortgage market and the resulting credit crunch has raised questions about how long it can go on staggering. Pandit is betting that a leaner (one of the slides in the town hall presentation is titled "Getting Fit—Fast!"), better-capitalized Citi is in a position to capitalize on its global presence. The U.S. economy may be moribund for months to come, but nearly half of Citigroup's business is outside the United States, with nearly 35 percent in emerging markets. Related Links Citi Under Siege Hoping for a Fed Encore Citi's Desperate Straits Source: Portfolio.com: Top 5 | 17 Nov 2008 | 1:30 pm No Bonus, Less OnusThis year, the Wall Street bonus must die so that the bonus can live again. Goldman Sachs is offering up martyrs to the year-end bonus season, recognizing that the public is not in any mood to read about huge multimillion-dollar paydays at a time when the economy is in trouble and Wall Street is being bailed out by the federal government. The calculus for talent remains he same: Make huge returns and you will be showered with wealth that year; make big losses and you can pack up you desk and leave. Wall Street Kings, Crowned Insider Trading Suspects Settle Up Wall Street's Most Convenient Bank Source: Portfolio.com: Top 5 | 17 Nov 2008 | 12:30 pm
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