Jun 16, 2008

Monday, June 16, 2008

Greenfield Online to be sold for $426 million: Financial News - Yahoo! Finance

Greenfield Online to be soldhttp://biz.yahoo.com/ap/080616/greenfield_online_sale.html?.v=1 to Quadrangle Group for $426 million cash WILTON, Conn. (AP) -- Greenfield Online Inc., which provides marketing companies with Internet surveys, said Monday it agreed to be bought by private investment firm Quadrangle Group LLC for $15.50 per share, or about $426 million in cash.

The price represents about a 13 percent premium over the stock's closing price Friday. Greenfield said its board approved the deal. It is expected to close late in the third quarter or in the fourth quarter.

-another boring cash deal; flat line chart :-(
Greenfield Online to be sold for $426 million: Financial News - Yahoo! Finance

Pre Market - Trader Talk with Bob Pisani - CNBC.com

S&P futures dropped about 5 points as the New York Empire State Index was notably weaker than expected and has been down 4 of the last 5 months, then dropped again on oil.

The most important issues this week:

1) we are entering earnings pre-announcement season.

2) whether oil can break significantly below the roughly $135 pivot; ; (NYMEX crude just hit a record, $139.89).

3) whether Goldman

GOLDMAN SACHS GROUP INC

178.29 UNCH 0%

NYSE

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[GS 178.29 --- UNCH (0%)

]and Morgan Stanley [MS 41.04 --- UNCH (0%) ]will have any significant surprises this week.

Elsewhere:

1) Barclays

BARCLAYS PLC

BCS

25.07 UNCH 0%

NYSE

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[BCS 25.07 --- UNCH (0%)

] up 5 percent; they have said they may raise capital with an outside investor (Reuters says it may include Singapore sovereign fund Temasek, which already has a 2 percent stake), but may also give existing shareholders right to take part.

2) AIG

AMERICAN INTL GROUP INC

AIG

34.18 UNCH 0%

NYSE

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[AIG 34.18 --- UNCH (0%) ] up modestly as CEO Martin Sullivan was forced out and replaced with Chairman Robert Willumstad, who will also retain the Chairman title. Willumstad was formerly President and COO of Citigroup.

3) Lehman

LEHMAN BROTHERS HLDGS INC

LEH

25.81 UNCH 0%

NYSE

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[LEH 25.81 --- UNCH (0%)

] came in in-line with its statements last week, a loss of $5.14.

4) Our parent company GE

GENERAL ELECTRIC CO

29.15 UNCH 0%

NYSE

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[GE 29.15 --- UNCH (0%)

] downgraded at JP Morgan, where they also cut estimates for 2009 (to $2.30 in 2009 versus $2.42 previously and a consensus of $2.44).

5) UBS downgrades AT&T

AT&T INC

36.68 UNCH 0%

NYSE

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[T 36.68 --- UNCH (0%) ]and Verizon [VZ 37.33 --- UNCH (0%) ], as well as lowering earnings estimates. "We believe the weak economy is pressuring wireline fundamentals at the Bells more than expected. This should show up in accelerating line losses, weaker broadband adds....Meanwhile, the wireless segment will get more competitive when the 3G iPhone hits the shelves at its new price point."

Market Issues For Week: Oil, Earnings, Financials - Trader Talk with Bob Pisani - CNBC.com

Pre Market Trading Gap Indications

Gapping Down

In reaction to disappointing earnings/guidance: TXT -5.5%, ITW -1.7%…
M&A news: AW -4.2% and RSG -3.0% (Republic Services and Allied Waste confirm merger discussions)…
Select airlines showing modest weakness with crude hitting new all time highs: UAUA -2.9%, DAL -2.3%, CAL -2.2%, AMR -2.0%, NWA -1.9%, LCC -1.4%…
Other news: ACAD -55.8% (announces results from ACP-104 phase IIb schizophrenia trial; did not meet its primary endpoint), CDS -5.1% (filed for $70 mln mixed shelf offering before the close on Friday), MNI -4.7% (reports that revenues in May 2008 decreased 15.1% and advertising revenues were down 16.6% from May 2007), DSCO -2.7% (files for a $150 mln mixed shelf offering)…
Analyst downgrades: OMX -3.3% (downgraded to Neutral at Credit Suisse), UL -3.2% (downgraded to Sell at UBS), T -1.9% (downgraded to Neutral at UBS), IVGN -1.7% (downgraded to Neutral at BofA), WLK -1.6% (downgraded to Neutral at UBS), VZ -1.5% (downgraded to Neutral at UBS), GE -1.3% (downgraded to Neutral at JPMorgan).

Gapping Up

In reaction to strong earnings/guidance: TITN +7.9%…
M&A news: SRVY +15.1% (to be acquired by Quadrangle for $15.50 per share), SIRI +8.7% and XMSR +8.3% (FCC staff backs XM-Sirius merger)…
Select agriculture names showing strength with Citigroup raising fertilizer price forecasts: TRA +2.1%, AGU +1.6%, CF +1.3%…
Select metals/mining stocks showing strength with higher spot prices: AAUK +4.1%, LMC +3.9%, GOLD +3.1%, DROOY +1.5%, BHP +1.4%, BBL +1.3%, RTP +1.1%…
Other news: SUPG +12.7% (co’s JAK2 Inhibitor, SGI-1252, inhibits in vivo tumor cell proliferation), BCS +8.3% (says share issue ‘under consideration’ - Financial Times), RAME +7.9% (Cramer makes positive comments on MadMoney), TEVA +5.2% (AZILECT 1mg tablets meet end points in ADAGIO Ph. III trial), CPST +4.9% (announces that it has received orders for new microturbine systems with orders are valued at approx $1.5 mln), CY +2.6% (still checking), AIG +1.7% (names Robert B. Willumstad Chief Executive Officer), SNHY +1.0% (Cramer makes positive comments on MadMoney)…
Analyst upgrades: SPWR +4.8% (upgraded to Outperform at Credit Suisse), SNDK +2.2% (upgraded to Market Perform at JMP), ESI +1.8% (upgraded to Buy at Stifel), GME +1.1% (upgraded to Neutral at Goldman - DJ).

Opening View: FCC Staff Reportedly Backs Sirius-XM Satellite Merger Deal

U.S. stock futures are trading flat to higher in early activity, indicative of a potentially mixed start to the regular session. The financial sector is once again the center of attention, with Lehman Brothers (LEH) reporting a $2.8-billion quarterly loss, and American International Group (AIG) ousting its CEO. Elsewhere, staff at the Federal Communications Commission have reportedly recommended approval for the merger between Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR). Finally, in other Monday merger news, Applied Materials (AMAT) is haggling with ASM International (ASMI) for 2 of the company's divisions.

Checking in on currencies and commodities, the U.S. Dollar Index is down in early trading ahead of speeches from Federal Reserve Chairman Ben Bernanke and Richmond Fed President Jeffrey Lacker. The index was last seen down 0.59% at 73.71. Elsewhere, gold futures are higher, with the August contract adding $7.90 to trade at $880.90 an ounce in London. In the oil patch, crude for August delivery is higher by 24 cents at $135.72 per barrel, despite indications from Saudi Arabia's King Abdullah that the country would boost production by 500,000 barrels per day.

Turning to equity news, Lehman Brothers (LEH: sentiment, chart, options) reported a second-quarter loss of $2.8 billion, or $5.24 per share. Revenue plunged to negative $700 million from last year's $5.5 billion. Analysts will be closely scrutinizing LEH's report throughout the day for details on its exposure and handling of losing assets and investments. Elsewhere in the financial sector, Dow component American International Group ( AIG: sentiment, chart, options) has ousted CEO Martin Sullivan and replaced him with Chairman Bob Willumstad. Willumstad said in a statement that the insurer will conduct a "thorough strategic and operational review."

The Wall Street Journal is reporting that the merger deal between Sirius (SIRI: sentiment, chart, options) and XM Satellite Radio (XMSR: sentiment, chart, options) has received backing from Federal Communications Commission (FCC) staff. According to the Journal, the staff wants to place conditions on the deal to protect consumers from price increases in service and receiving equipment. Per the report, an SIRI/XMSR deal could close within 3 weeks if the companies meet the conditions.

In other Monday merger news, ASM International (ASMI: sentiment, chart, options) rose sharply in overseas trading after the chip equipment-maker rejected an Applied Materials (AMAT: sentiment, chart, options) offer for 2 divisions. ASMI indicated that it was open to talks, however. Elsewhere, Allied Waste Industries (AW) and Republic Services ( RSG: sentiment, chart, options) are discussing a possible combination of the 2 trash-hauling companies.