BloggingStocks

10 craziest days on Wall Street in 2008: #10 Saving our Fannie (and Freddie)

Greg Tucker — Sat, 03 Jan 2009 10:00:00 EST

July 14 -- Dow 11,055 (down 45 points); trading range, 327 points

The third-largest bank failure in U.S. history made headlines after IndyMac Bancorp collapsed following a run on the bank.

An FDIC takeover of IndyMac attempted to keep operations as normal as possible, but doubts began to arise about other troubled regionals like Washington Mutual (later sold to JPMorgan Chase) and National City (now a part of PNC Financial after an October "take-under," where the company was purchased at a discount to its stock value).

But wait, there's more. After years of financial shenanigans and controversy, Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM) were placed into conservatorship in a federal takeover of the government sponsored enterprises. This contributed to another slaughter in the financials, with 96% of the sector posting a loss for the session.

Oh, and if you wanted to drown your sorrows over an American-owned brew, scratch Budweiser off your list. Anheuser-Busch agreed to merge with Belgium's InBev for $70 a share, or $52 billion.

Greg Tucker is the executive editor of OptionsZone.com.

10 craziest days on Wall Street in 2008: #10 Saving our Fannie (and Freddie) originally appeared on BloggingStocks on Sat, 03 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

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Stocks to buy in a recession, 8 questions to auto bailout answered & 5 retailers bucking the slump - Today in Money 12/9

Allan Halprin — Tue, 09 Dec 2008 08:57:00 EST

Filed under: Google (GOOG), Apple Inc (AAPL), Wal-Mart (WMT), Ford Motor (F), General Motors (GM), Sony Corp ADR (SNE), Money and Finance Today, Abbott Laboratories (ABT), Anheuser-Busch Cos (BUD), Boeing Co (BA), Tribune Co. (TRB), CVS Corp (CVS), FedEx Corp (FDX), Broadcom Corp'A' (BRCM), Gilead Sciences (GILD), Kraft Foods'A' (KFT)

In the News:

· $15 Billion Auto Bailout Very Near

· Gas Prices Hit Lowest Level in Almost 5 Years

· Tribune Files Chapter 11 Bankruptcy

· Wave of Bankruptcy Filings Likely in Coming Months

· Electronics Giant Sony to Cut 8,000 Jobs

· FedEx Slashes Outlook, Stock Sinks

· Consumers Cancel Dining Out, Cut Shopping to Pay Debt

· Anheuser-Busch InBev to Cut 1,400 Jobs

· Advantage Rent-a-Car Files for Bankruptcy

· Ford May Sell Volvo to Chinese Company

· CEO Christie Hefner Departing Playboy

· Next Year Looking Even Worse for Media and Advertising

· Jay Leno Moving to Prime Time on NBC

Stocks to Buy in a Recession
Here are six companies that should hold up well -- and 13 that are on sale. Among them Abbott Labs, Gilead, Google, Apple, Medtronic, CVS Caremark, Wal-Mart, Kraft Foods, Boeing, Broadcom to name a few.
http://www.kiplinger.com/columns/picks/archive/2008/pick1208.htm

10 Fast & Easy Ways to Throw Away Your Money
Getting ahead requires work; falling behind is much easier. Follow these tips to achieve total financial failure.
http://www.bankrate.com/brm/news/Financial_Literacy/investing_money/shrink_bottom_line_a1.asp?caret=114d

Continue reading Stocks to buy in a recession, 8 questions to auto bailout answered & 5 retailers bucking the slump - Today in Money 12/9

Stocks to buy in a recession, 8 questions to auto bailout answered & 5 retailers bucking the slump - Today in Money 12/9 originally appeared on BloggingStocks on Tue, 09 Dec 2008 08:57:00 EST. Please see our terms for use of feeds.

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6 stocks with little debt and lots of cash, 5 potential year-end surprises & your homes' value dropping $54/day - Today in Money 11/19

Allan Halprin — Wed, 19 Nov 2008 09:02:00 EST

Filed under: Ford Motor (F), Money and Finance Today, Anheuser-Busch Cos (BUD), Gap Inc (GPS), Amer Intl Group (AIG), Yum Brands (YUM), Southwest Airlines (LUV)

In the News:

· Consumer Prices Drop a Record 1% in October, Biggest Drop in 61 Years Thanks to Gas Prices

· U.S. Home Construction at Lowest Level Since at Least World War II

· Some AIG Execs to Get $3 Million Payout

· Mortgage Relief Plan Gains Support

· Ford Unveils New Hybrids Today

· Economic Slowdown Has Hit Online Sales As Growth Slowest in 7 Years

· It's Official: America's King of Beers Now Calls Belgium Home

· Southwest Airlines Coming to LaGuardia Airport in New York

· Mall Restaurants Brace for Fewer Customers Over Holidays

· Taco Bell Goes Global; Expands to Spain and India

6 Stocks With Little Debt and Lots of Cash Flow
Big, reliable dividends never go out of fashion and these six stocks make the grade. They include the Gap, Altria, 3M, Intel, Barnes & Noble and Marathon Oil.
http://www.smartmoney.com/Investing/Stocks/6-Stocks-With-Little-Debt-Lots-of-Cash-Flow/

5 Potential Surprises to Years' End
2008 will go down as a disastrous year for most of the U.S. and it isn't ven over yet. With just a little over a month to go there is still time for more to happen. Here are five additional twists and turns that could still happen.
http://www.marketwatch.com/news/story/Five-potential-surprises-years-end/story.aspx?guid=%7BE9371851%2D72B4%2D4823%2DBF95%2DFFBE75925EB0%7D

Continue reading 6 stocks with little debt and lots of cash, 5 potential year-end surprises & your homes' value dropping $54/day - Today in Money 11/19

6 stocks with little debt and lots of cash, 5 potential year-end surprises & your homes' value dropping $54/day - Today in Money 11/19 originally appeared on BloggingStocks on Wed, 19 Nov 2008 09:02:00 EST. Please see our terms for use of feeds.

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Closing Bell: Was that a win or loss? BUD is no more; GLW, FSLR, HPQ, HD

Jon Ogg — Tue, 18 Nov 2008 16:17:00 EST

Filed under: Hewlett-Packard (HPQ), Home Depot (HD), Anheuser-Busch Cos (BUD), Corning Inc (GLW)

Today was another one of those days where it was hard to tell if the market was up. The market gapped up and then posted a great morning rally, and then proceeded to give back most of the gains from noon until late in the afternoon. Housing was dismal, producer prices were down, and Bernanke and Paulson testified about the TARP usage.

Below are today's unofficial closing bell levels:

DJIA: 8,424.75 +151.17 +1.83%

NASDAQ: 1,483.27 +1.22 +0.08%

S&P 500: 859.12 +8.37 +0.98%

Analyst Calls: Top Upgrades and Top Downgrades

Anheuser-Busch Companies Inc. (NYSE: BUD) is no more..... The merger was completed today with InBev and the stock will now be European listed and be called Anheuser-Busch InBev. Shareholders of common stock receive $70.00 per share in cash as part of this $52 billion merger.

Corning Inc. (NYSE: GLW) gave disappointing LCD panel guidance which was "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 just a few weeks ago. Shares were down 7% right before the the close.

Continue reading Closing Bell: Was that a win or loss? BUD is no more; GLW, FSLR, HPQ, HD

Closing Bell: Was that a win or loss? BUD is no more; GLW, FSLR, HPQ, HD originally appeared on BloggingStocks on Tue, 18 Nov 2008 16:17:00 EST. Please see our terms for use of feeds.

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Merger of beer giants all comes down to Rochester

Sarah Gilbert — Fri, 14 Nov 2008 18:30:00 EST

Filed under: Deals, Law, Anheuser-Busch Cos (BUD)

Who knew that the fate of world beer would one day be in the hands of the beer faithful in Rochester, New York? The tastes of this blue-collar town, along with neighbors Syracuse and Buffalo, are key in the pending acquisition of Anheuser-Busch (NYSE: BUD) by Belgian giant InBev, SA. The three cities make up half of the U.S. consumption of Labatt Blue and Labatt Blue Light. Due to the popularity of Labatt brews and Budweiser brands in upstate New York, the U.S. Justice Department worries that beer prices might rise in Rochester.

So, if the acquisition is to be approved, giving Europeans control over America's iconic beer brands, InBev is being asked to sell the Labatt USA subsidiary. Other major InBev brands, including Stella Artois, Becks, and Bass, are not considered competitive enough in any markets to reduce competition between beers and provide upward pressure on prices.

Nope, it all comes down to Rochester and its surprisingly European tastes. Who would have thought?

Merger of beer giants all comes down to Rochester originally appeared on BloggingStocks on Fri, 14 Nov 2008 18:30:00 EST. Please see our terms for use of feeds.

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What if BUD don't get bought?

Douglas McIntyre — Fri, 24 Oct 2008 04:19:00 EST

Filed under: Deals, Anheuser-Busch Cos (BUD)

The credit crisis has ruined a number of M&A deals, so why not the InBev transaction to buy Anheuser-Busch (NYSE: BUD) and create the world's largest brewer?

The problem may not be so far fetched. Most of the money needed to close the transaction is debt.

According to Reuters, "A banking industry meltdown and corresponding market volatility has already caused the Belgium-based brewer to postpone a $13.4 billion rights issue it planned in connection with the deal."

The InBev management may say that BUD is worth less now as the economy has faltered. The Anheuser-Busch board may not buy that. They like the $70 a share offer they have now. But, do they have any choice to take less? Maybe not.

BUD trades at $58, which means that some risk of problems with InBev are already in the stock. But, before word of the deal leaked, BUD traded below $50. If the board walks now, especially given how far the overall stock market is off, shares could drop well below $40.

Anheuser-Busch is trapped by the 40% drop in most of the equity indexes. Its shareholders are about to be hammered. Look for a deal to get done at $55. BUD don't have any leverage to do better.

Douglas A. McIntyre is an editor at 24/7 Wall St.

What if BUD don't get bought? originally appeared on BloggingStocks on Fri, 24 Oct 2008 04:19:00 EST. Please see our terms for use of feeds.

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Before the bell: Big plunge expected; WB, WFC, C, BUD, IMCL, CC, AAPL ...

Melly Alazraki — Mon, 29 Sep 2008 08:18:00 EST

Filed under: Before the bell, Earnings reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Pfizer (PFE), Motorola (MOT), Market matters, Walgreen Co (WAG), Citigroup Inc. (C), Sprint Nextel Corp (S), Anheuser-Busch Cos (BUD), Bristol-Myers Squibb (BMY), Circuit City Stores (CC), Comcast Cl'A' (CMCSA), Nortel Networks (NT), Wachovia Corp (WB), Lilly (Eli) (LLY), Economic data, Wells Fargo (WFC), ImClone Systems (IMCL), Financial Crisis

Stock futures dropped sharply Monday morning after the bailout plan was revealed Sunday and several banks in Europe were bailed out. U.S. investors are expected to react similar to stock markets around the word, which tumbled Monday following Washington's $700 billion bank bailout deal. The bailout may not be enough, and it will take a while to clean up the mess and restore confidence to financial markets. The economic reading due to be released today, August personal income and spending is not expected to affect markets much.

Three major banking bailouts were announced in Europe. 1) The Dutch-Belgian bank and insurance giant Fortis failed and was provided with a $16.4 billion lifeline by the governments of Belgium, the Netherlands and Luxembourg. 2) The British government nationalized mortgage lender Bradford & Bingley -- the second British bank to be taken under government control this year. 3) A consortium of German banks and regulators bailed out Hypo Real Estate Holding AG, in a deal worth billions of dollars.

Wachovia Corp. (NYSE: WB) - after WaMu's failure, the focus has shifted to Wachovia and at least two major banks, Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC), were reportedly in talks Sunday to buy it. Wachovia shares are trading down 60% to $4 in pre-market action. C and WFC shares are down over 6.5% and 3.5% respectively in pre-market trade.

Continue reading Before the bell: Big plunge expected; WB, WFC, C, BUD, IMCL, CC, AAPL ...

Before the bell: Big plunge expected; WB, WFC, C, BUD, IMCL, CC, AAPL ... originally appeared on BloggingStocks on Mon, 29 Sep 2008 08:18:00 EST. Please see our terms for use of feeds.

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Wal-Mart makes me thin, queen of reality TV & lions, tigers & lawsuits, oh my - Today in Money 9/11

Allan Halprin — Thu, 11 Sep 2008 09:22:00 EST

Filed under: Time Warner (TWX), Wal-Mart (WMT), Sirius Satellite Radio (SIRI), New York Times'A' (NYT), Money and Finance Today, Anheuser-Busch Cos (BUD), Washington Mutual (WM), Lehman Br Holdings (LEH)

In the News:

· U.S. Trade Deficit Swells in July to 16-Month High

· Asian Stocks Plunge on U.S. Financial Fears

· Can 150-Year Old Lehman Brothers Last Through the Week?

· Carlos Slim, World's Second Richest Man, Buys Stake in New York Times

· Washington Mutual Plunges to 17-Year Low

· The Last Chance for AOL?

· Expectations Grow Fed Will Cut Rates Later This Year

· Sirius XM Falls Below $1/Share

· Anne Hathaway's Ex, Italian Businessman Raffaello Follieri Pleads to Fraud

· 10 Angry Beer Drinkers Sue to Stop Anheuser-Busch Takeover

Wal-Mart Makes Me Thin
A new study notes that the existence of a big box retailer in an area seems to actually decrease weight slightly.
The Wal-Mart Diet - Portfolio.com

Meet the Queen of Reality TV
Cecile Frot-Coutaz is a force behind American Idol and America's Got Talent. Can her brand of schlock save network TV? The 42-year-old Los Angeles-based French expatriate has an instinct for high-performance reality television and as the CEO of FremantleMedia North America she is behind some of television's biggest blockbusters - and a few bombs.
Fearless Cecile Frot-Coutaz has an instinct for reality TV - FORTUNE

Continue reading Wal-Mart makes me thin, queen of reality TV & lions, tigers & lawsuits, oh my - Today in Money 9/11

Wal-Mart makes me thin, queen of reality TV & lions, tigers & lawsuits, oh my - Today in Money 9/11 originally appeared on BloggingStocks on Thu, 11 Sep 2008 09:22:00 EST. Please see our terms for use of feeds.

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Banks booze up on InBev debt

Tom Taulli — Sun, 31 Aug 2008 15:00:00 EST

Filed under: JPMorgan Chase (JPM), Anheuser-Busch Cos (BUD)

A friend of mine was part of the team that worked on an acquisition for InBev, which is the mega Belgian beer company. He was impressed with the company's merger skills and had little doubt the transaction would work.

Well, global investors are impressed too (which is no easy feat in this tough global economic environment). In fact, according to a piece in the Wall Street Journal (subscription required), it looks like InBev is effectively managing the $45 billion in debt financing for the acquisition of Anheuser-Busch (NYSE: BUD).

No doubt, this is a complicated process. After all, InBev has organized a syndicate of top banks, which include Deutsche Bank, JP Morgan (NYSE: JPM), Barclays Capital, Royal Bank of Scotland, ING Bank, Banco Santander, BNP Paribas, Fortis, Bank of Tokyo-Mitsubishi and Mizuho Corporate Bank.

For the most part, the senior management team at InBev understands the global financial world (keep in mind that there is a deep bench of former investment bankers). Besides, the company has been diligent with maintaining a strong credit rating, which helps to minimize the financing risk.

In other words, to get a big deal completed nowadays, the quality needs to be top-notch. And, for the most part, InBev fits the bill.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Banks booze up on InBev debt originally appeared on BloggingStocks on Sun, 31 Aug 2008 15:00:00 EST. Please see our terms for use of feeds.

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August: A cruel month for M&A

Tom Taulli — Mon, 25 Aug 2008 10:01:00 EST

Filed under: Deals, Private equity, Anheuser-Busch Cos (BUD)

For financial markets, August is always a slow time as Wall Streeters head for their vacations. But this year, there was more than just seasonality. Simply put, it was a very tough month for M&A operators.

In fact, according to Reuters, August was the worst month since 1992.

It's been about a year since the credit crunch started, and it looks like things aren't getting better. If anything, it's a good bet we'll continue to see volatility and layoffs in the financial services space.

In August, the M&A volume in the U.S. came to about $28.5 billion, which is 53% off from the same period a year ago.

Ironically, while private equity funds have a huge amount of capital to put to work, there is not much bank financing. As a result, most of the private equity deals have been fairly small (below $2 billion or so).

Also, some of the recent mega deals - such as InBev's $45 billion acquisition for Anheuser-Busch Cos. (NASDAQ: BUD) - are crowding out the financing market.

In other words, investment bankers may need to wait until next year for things to warm up again.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

August: A cruel month for M&A originally appeared on BloggingStocks on Mon, 25 Aug 2008 10:01:00 EST. Please see our terms for use of feeds.

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Serious Money: How safe were BRK, BUD, PG, SO, & UPS?

Sheldon Liber — Tue, 19 Aug 2008 15:07:00 EST

Filed under: Rants and raves, Competitive strategy, Wal-Mart (WMT), Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD), Procter and Gamble (PG), United Parcel'B' (UPS), Washington Mutual (WM), PetroChina Co Ltd ADR (PTR), Comfort Zone Investing, Serious Money, S and P 500, Stocks to Buy, Southern Company (SO)

The stock market was down yesterday and it is down again today. Bearish sentiment is roaming through Wall Street right now, so I thought I would look back on another occasion when the market was going through similar turmoil and I wrote about the following eight stocks, which I thought would be "safe havens" in such a storm.

Six of the eight did well and two did not, and of course one of those two was a disaster. Among the losers, I do not think anyone is fretting about UPS, which is still one of the few triple-A rated companies along with Berkshire Hathaway. It has been well reported that the slowing economy and higher fuel prices have been the major culprits affecting UPS's earnings. In the case of WaMu, it's demise has also been well reported, but at the time I recommended it WaMu had a stellar reputation of growth and high yield for over two decades. There is no hiding, it turned out to be a lousy pick and an ANTI-SAFE Haven

NOT SAFE:

United Parcel Service (NYSE: UPS) closed Monday at $65.30 down from $78.40; a 16.71% loss

Washington Mutual (NYSE: WM) closed Monday at $4.21 down from $45.50; a 98% loss.

Fortunately the remaining six picks have done very, very well. If you had bought the pool, the average gain over the last two years would have been 7.14%. Adding the dividends over the two years would have raised this to 13.14%.

Continue reading Serious Money: How safe were BRK, BUD, PG, SO, & UPS?

Serious Money: How safe were BRK, BUD, PG, SO, & UPS? originally appeared on BloggingStocks on Tue, 19 Aug 2008 15:07:00 EST. Please see our terms for use of feeds.

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InBev-Anheuser-Busch transaction will create an M&A hangover?

Tom Taulli — Mon, 18 Aug 2008 09:19:00 EST

Filed under: Deals, Anheuser-Busch Cos (BUD)

For hungry Wall Street investment bankers, the $45 billion merger of InBev and Anheuser-Busch Cos. (NASDAQ: BUD) is a nice relief. Yes, it means lots of juicy fees.

Another big winner is Busch IV (the CEO of Anheuser). Apparently, he is negotiating a consulting agreement that may exceed $10 million (there will be a $120,000 monthly retainer through December 31, 2013).

But according to a piece in Reuters, the transaction may have a dark side. Simply put, it hasn't been easy to raise the debt financing. As a result, this may crowd out some of the financing of other M&A deals.

The high rates on the InBev financing is likely to push up other debt costs on other pending transactions. What's more, there will be a flood of bond issuances on the market, which will put further pressure on the debt markets.

In other words, we may see a slowdown in M&A activity for the rest of the year -- except for those buyers that have substantial balance sheets.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

InBev-Anheuser-Busch transaction will create an M&A hangover? originally appeared on BloggingStocks on Mon, 18 Aug 2008 09:19:00 EST. Please see our terms for use of feeds.

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Lazard finds opportunities in this market

Tom Taulli — Wed, 30 Jul 2008 17:55:00 EST

Filed under: Earnings reports, Deals, Anheuser-Busch Cos (BUD)

The credit crunch should be bad news for investment banks, right? Not necessarily. After all, strategic buyers have been aggressive lately, perhaps because there's not much competition from private equity operators.

One of the beneficiaries is Lazard (NYSE: LAZ), which reported its Q2 numbers. Eearnings came to $64.6 million, or 54 cents per share, which compares to $61.5 million, or 53 cents per share in the same period a year ago.

Simply put, Lazard has been snagging some choice client engagements. For example, Q2's revenues on merger assignments spiked 37% to $225.1 million.

In fact, the firm is an advisor on InBev's $52 billion deal to purchase Anheuser-Busch Cos. (NYSE: BUD). Another high-profile assignment is Gaz de France's 44.6 billion euro deal with Suez.

Keep in mind that Lazard has worked on about $100 billion in announced deals in July alone. This is certainly a nice momentum boost.

Besides, Lazard has a strong restructuring division. While the business is still fairly small - at $32.7 million - there should be lots of potential for growth. Just look at some of the major bankruptcies lately, such as Mervyn's, Steve & Barry's, Linen 'n Things and so on.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Lazard finds opportunities in this market originally appeared on BloggingStocks on Wed, 30 Jul 2008 17:55:00 EST. Please see our terms for use of feeds.

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Before the bell: COST, YHOO, WM, BA, PEP, PFE, GOOG ...

Melly Alazraki — Wed, 23 Jul 2008 08:05:00 EST

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Yahoo! (YHOO), Pfizer (PFE), PepsiCo (PEP), Amazon.com (AMZN), McDonald's (MCD), AT and T (T), Anheuser-Busch Cos (BUD), Boeing Co (BA), ConocoPhillips (COP), Costco Wholesale (COST), Washington Mutual (WM)

Stock futures were higher this morning, indicating stocks could have a positive start to the session as oil prices continued to decline, sinking below $127 a barrel. Weekly inventories numbers reported later today could have an impact on oil prices. Then there is continued optimism in the financial sector, which caused the rally Tuesday. Also, a bill aimed at helping the housing market will reach the House floor. But once again earnings will likely have investors' attention with Costco already giving a profit warning.

Costco Wholesale Corp. (NASDAQ: COST) shares are plunging over 8% in premarket trading after the wholesale retailer warned its August-ending quarter's profit would miss analyst estimates. This is most surprising as Costco had been one of the retailer that seemed to have benefited from consumers trying to save and buy lower-cost items. But Costco blamed the lower profit on rising energy costs, saying it will earn less than $1 per share.

Washington Mutual Inc. (NYSE: WM) late Tuesday reported second-quarter results, posting a loss of $3.3 billion, was worse than analysts had anticipated. Excluding one-time items, WaMu lost $3.34 per share, much wider than the expected loss of $1.05 per share. Piper Jaffray downgraded WM shares from Neutral to Sell and Friedman Billings halved its target price on the shares from $8 to $4. Shares are off nearly 3% in premarket trading.

Yahoo Inc. (NASDAQ: YHOO) also reported profits and sales that came up short of estimates. Second-quarter profit fell 18% to $131 million, or 9 cents per share. Analysts had projected earnings of 11 cents per share in the most recent quarter, according to Thomson Financial. Revenue grew 6% to $1.8 billion, or $1.35 billion after subtracting commissions, also below estimates. Yahoo! shares, however, are up about 3% in premarket trading since investors were relieved the performance wasn't as bad as many had feared after Google (NASDAQ: GOOG) reported last week and disappointed investors. Also, Yahoo didn't dramatically lower its revenue outlook for the remainder of the year.

Continue reading Before the bell: COST, YHOO, WM, BA, PEP, PFE, GOOG ...

Before the bell: COST, YHOO, WM, BA, PEP, PFE, GOOG ... originally appeared on BloggingStocks on Wed, 23 Jul 2008 08:05:00 EST. Please see our terms for use of feeds.

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Cramer on BloggingStocks: Genentech bid confirms the trend

Jim Cramer — Mon, 21 Jul 2008 09:09:00 EST

Filed under: Deals, Market matters, Anheuser-Busch Cos (BUD), Research in Motion (RIMM), Genentech Inc (DNA), Amgen Inc (AMGN), Gilead Sciences (GILD), Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says the biotechs look sweet in a bank-led slowdown.

Thank you, New York Times. Remember just a couple of weeks ago, when The New York Times wrote about how Genentech's (NYSE: DNA) (Cramer's Take) Avastin was too expensive and the stock got cracked down to $77? I know Roche did. I bet that was the last draw. The dramatic decline in the dollar plus a sentiment that has spawned a thousand articles -- that life-saving drugs cost too much -- gave the Swiss giant a chance to bolster its own anemic pipeline by buying what may be the greatest wonder drug of all time in its $43 billion bid, no doubt the beginning price for what will ultimately be a deal close to $100 a share. (I pushed DNA hard here and on "Mad Money" because I have been a huge believer in Avastin and I'm confident that people will pay anything -- or family members will pay anything -- for the hope of three or four months or more of life, or the chance of beating cancer altogether.)

I don't even know where to begin about the positives of this deal. First, it confirms the general trend: the dollar is so weak that it is worth buying anything that's name-brand if you are from Europe, including Anheuser-Busch (NYSE: BUD) (Cramer's Take), a total creature of the weak dollar.

Continue reading Cramer on BloggingStocks: Genentech bid confirms the trend

Cramer on BloggingStocks: Genentech bid confirms the trend originally appeared on BloggingStocks on Mon, 21 Jul 2008 09:09:00 EST. Please see our terms for use of feeds.

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Spokesperson fiasco #10: Ludacris for Pepsi

Tom Barlow — Sun, 20 Jul 2008 07:00:00 EST

Filed under: PepsiCo (PEP), Marketing and advertising, Anheuser-Busch Cos (BUD)

This post is part of a series on celebrity spokespeople who ended up doing serious harm to the brands they were hired to promote, or vice versa. See how we rank the 20 top spokesperson fiascos.

In a confrontation between bombast and street cred, Fox mouth Bill O'Reilly managed to rip the Pepsi (NYSE:PEP) bottle from rapper Ludacris's live, warm fingers. In August of 2002, O'Reilly, upset with the musician's street language and what he perceived as glorification of crime and misogyny, called for a boycott of Pepsi. At the time, Ludacris was a featured representative of Pepsi, no doubt part of the companies attempt to reach out to the 18-34 demographic.

After the company dumped Ludacris in response to the boycott, Pepsi immediately stepped back into a pile of controversy by signing the rock and brain-damage icon Ozzy Osbourne, he of bat-head biting-off fame. (Nothing goes better with bat than an ice-cold Pepsi.)

O'Reilly's diatribe helped call attention to the brutality of Lucacris's lyrics, not atypical for the genre but fear-inspiring to the Fox nation. For example:

"Hollow laid hollow sprayed I'm the hollow man
I get to my hollow point wit my hollow plan
Hollow bullets I pull it I'm about to live in vain
And then I drill em refill em make sure they feel the pain"

(BTW- Is this a shout-out to T.S. Eliot's The Hollow Men?)

While the controversy cost Ludacris his Pepsi deal, O'Reilly was to swallow his tongue for a second time two years later when the rapper was signed by Anheuser-Busch (NYSE:BUD).

I don't see Bill O'Reilly pulling in big endorsement contracts these days. So who's your daddy now, Bill?

Read the entire series

Spokesperson fiasco #10: Ludacris for Pepsi originally appeared on BloggingStocks on Sun, 20 Jul 2008 07:00:00 EST. Please see our terms for use of feeds.

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Before the bell: Futures tumble on financials, ahead of data, earnings

Melly Alazraki — Tue, 15 Jul 2008 07:43:00 EST

Filed under: Before the bell, International markets, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Intel (INTC), General Motors (GM), Employees, Market matters, Johnson and Johnson (JNJ), Anheuser-Busch Cos (BUD), Federal Natl Mtge (FNM), Wachovia Corp (WB), Washington Mutual (WM), Economic data, Federal Reserve

Who is next to fail/fall? That seems to be the only question on investors' minds these days, and this morning is not different as concern about the health of the financial sector grows. With global markets plunging overnight, the dollar falling to yet another record low against the euro and ahead of a day full of economic data releases and earnings, as well as a testimony from Fed chairman Bernanke, U.S. stock futures dropped this morning, indicating the market is poised for a lower open.

On Monday, what seemed like might be a promising day with the government plan to bail out Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) and several large deals including the mega beer deal between Anheuser-Busch (NYSE: BUD) and InBev. But once again financials took front stage and after IndyMac was seized by federal regulators over the weekend Wall Street tumbled. The Dow industrials fell 45 points, or 0.41%, the S&P 500 dropped 11 points, or 0.9%, and the Nasdaq Composite lost 26 points, or 1.17%.

As the day go on, investors will have more to chew on though as several economic reports are due out today. June Producer Price Index, a measure of inflation at the wholesale level, is due before the market open, at 8:30 a.m. EDT. While economists expect a smaller increase in prices in June, an increase is expected for both PPI and core-PPI, which excludes food and energy prices.
At the same time, June retail sales will be released, and may show a nice increase due to the government checks.
July NY Empire State Index will also be released at that time and it's likely we'll see it decline further.
Then, 10:00 a.m., a reading on business inventories for May is due.

Continue reading Before the bell: Futures tumble on financials, ahead of data, earnings

Before the bell: Futures tumble on financials, ahead of data, earnings originally appeared on BloggingStocks on Tue, 15 Jul 2008 07:43:00 EST. Please see our terms for use of feeds.

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Closing Bell: Bulls and GSE Bailout Plans succumb to 'Sell, Sell, Sell"

Jon Ogg — Mon, 14 Jul 2008 16:12:00 EST

Filed under: Google (GOOG), Anheuser-Busch Cos (BUD), Federal Natl Mtge (FNM), Washington Mutual (WM)

Today would be described as being choppy disappointment at best. The markets started out strong on a government bailout proposal for GSE's but traders went right back to shorting financials on big gap ups. After today, we'll get major earnings reports coming on a non-stop basis and tomorrow we'll also start to see some key data around producer prices tomorrow morning. Here are today's unofficial closing bell levels:
DJIA 11,052.10 (-48.44)
S&P500 1,228.02 (-11.46)
NASDAQ 2,212.87 (-26.21)
10YR T-Note 3.88% (-0.06%)
52-WEEK LOWS
TOP ANALYST UPGRADES
TOP ANALYST DOWNGRADES

Anheuser-Busch Companies, Inc. (NYSE: BUD) saw a gain as the company finally capitulated and agreed to be acquired now that InBev boosted its buyout offer price to $70.00 from $65.00.

Continue reading Closing Bell: Bulls and GSE Bailout Plans succumb to 'Sell, Sell, Sell"

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If the dollar was stronger would BUD buy InBev?

Sheldon Liber — Mon, 14 Jul 2008 15:32:00 EST

Filed under: International markets, Deals, Rants and raves, Berkshire Hathaway (BRK.A), Anheuser-Busch Cos (BUD)

We have posted numerous articles about the acquisition of Anheuser-Busch (NYSE: BUD) by InBev (NV) and it now looks like the deal has been done at a price of $70 per share. However, what made this deal work for InBev might have been that the dollar has fallen so far.

The exchange rate between the dollar and Euro gives InBev a 30% to 35% discount making the acquisition price seem like a great deal for BUD shareholders but an even better one for InBev shareholders. And if the the currency exchange rates shift back over time then all the shareholders win.

This means that Americans will be answering to the ~~Dutch~~ Belgians. If the dollar had gained against the Euro instead of becoming weaker is it possible that Anheuser-Busch (BUD) would have bought out InBev (NV)? If the dollar stays down or drifts lower as seems likely right now look for more M&A activity from abroad.

In the mean time, since 'my pal Warren', is the largest shareholder of BUD through Berkshire Hathaway (NYSE: BRK.A) and supports the deal, will he remain a shareholder of the new company? No doubt this increases the value of Berkshire, but does this set the stage for Buffett to enter the European market in a big way?

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of BRK.B.

If the dollar was stronger would BUD buy InBev? originally appeared on BloggingStocks on Mon, 14 Jul 2008 15:32:00 EST. Please see our terms for use of feeds.

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The resilience of strategic deals

Tom Taulli — Mon, 14 Jul 2008 14:06:00 EST

Filed under: Berkshire Hathaway (BRK.A), Private equity, Anheuser-Busch Cos (BUD), Wrigley, (Wm) Jr (WWY), Dow Chemical (DOW)

The credit crunch is not going away, and as a result, there has been a sharp fall-off in leveraged buyouts (LBOs). Basically, only relatively small LBOs -- between $1 billion to $2 billion -- are getting done.

But there is a bright spot: strategic acquisitions. If anything, we are seeing a variety of mega deals in this category. A survey from Dealogic shows that - as of June 25 - there were $597 billion in strategic M&A transactions, only 2% down from last year's total.

Some of the notable deals include: InBev's $49.9 billion play for Anheuser-Busch Cos. (NYSE: BUD), Mars' $23 billion deal for Wm. Wrigley Jr. Co. (NYSE: WWY) and Dow Chemical Co's (NYSE: DOW) $18.8 billion cash purchase of Rohm & Haas Co. (NYSE: ROH). The last two have involved financing from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A).

Why the resilience with strategic deals? Well, there are several key reasons.

Continue reading The resilience of strategic deals

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