Bidding War: WMB for SUG

Upping ETE’s offer, WMB bids $39 for SUG.

Reports Q3 (May) earnings of $0.07 per share, $0.10 worse than the Capital IQ Consensus Estimate of $0.17; revenues fell 6.5% year/year to $2.14 bln vs the $2.37 bln consensus. The company’s consolidated gross margin improved to 22 percent for the third quarter of fiscal 2011 from 19 percent for the second quarter of fiscal 2011 due primarily to decreases in manufacturing costs. Revenue from sales of DRAM products was 7 percent lower in the third quarter of fiscal 2011 compared to the second quarter of fiscal 2011 due to a decrease in sales volume.

Reports Q4 (May) earnings of $0.75 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 11.9% year/year to $10.78 bln vs the $10.74 bln consensus. Both GAAP and non-GAAP new software license revenues were up 19% to $3.7 bln. Both GAAP and non-GAAP software license updates and product support revenues were up 15% to $4.0 bln. Both GAAP and non-GAAP hardware systems products revenues were down 6% to $1.2 bln. Non-GAAP operating income was up 19% to $5.2 bln, and non-GAAP operating margin was 48%. “In Q4, we achieved a 19% new software license growth rate with almost no help from acquisitions. This strong organic growth combined with continuously improving operational efficiencies enabled us to deliver a 48% operating margin in the quarter. As our results reflect, we clearly exceeded even our own high expectations for Sun’s business. In addition to record setting software sales, our Exadata and Exalogic systems also made a strong contribution to our growth in Q4. Today there are more than 1,000 Exadata machines installed worldwide. Our goal is to triple that number in FY12. In FY11 Oracle’s database business experienced its fastest growth in a decade. Over the past few years we added features to the Oracle database for both cloud computing and in-memory databases that led to increased database sales this past year. Lately we’ve been focused on the big business opportunity presented by Big Data.”

Following are the measures announced:

– One-off solidarity levy on personal income ranging between 1 and 5 percent, according to income: Those earning 12,000 to 20,000 euros a year will be taxed at 1 percent. Rate then climbs to 2 percent for incomes of 20,000-50,000 euros, to 3 percent for 50,000-100,000 euros and to 4 percent for those earning 100,000 euros or more. Lawmakers and public office holders to pay a 5 percent rate.

– Tax-free threshold on income lowered to 8,000 euros annually from current level of 12,000 euros, with the lowest rate set at 10 percent and exemptions for young people up to 30 years, pensioners over 65 years and the disabled.

– Annual levy of 300 euros on the self-employed.

– Small tax hike for heating and diesel fuel for companies.

– Public spending cuts of 400 million euros in 2011.

By far, tech is the strongest sector.

No. Ticker % Change Sector
1 MOTR 14.86 TECHNOLOGY
2 MOBI 12.35 TECHNOLOGY
3 FTWR 10.48 TECHNOLOGY
4 CTFO 7.38 TECHNOLOGY
5 PRKR 6.90 TECHNOLOGY
6 TIER 6.81 TECHNOLOGY
7 TKLC 6.41 TECHNOLOGY
8 SHOR 6.40 TECHNOLOGY
9 WDC 6.33 TECHNOLOGY
10 NEWP 6.17 TECHNOLOGY
11 RVBD 6.13 TECHNOLOGY
12 EGHT 6.08 TECHNOLOGY
13 QPSA 5.72 TECHNOLOGY
14 PXLW 5.51 TECHNOLOGY
15 APKT 5.38 TECHNOLOGY
16 MTSN 5.36 TECHNOLOGY
17 SREV 5.03 TECHNOLOGY
18 ISS 4.95 TECHNOLOGY
19 RIMM 4.93 TECHNOLOGY
20 VOCS 4.83 TECHNOLOGY
21 HTCH 4.72 TECHNOLOGY
22 STX 4.54 TECHNOLOGY
23 VIMC 4.52 TECHNOLOGY
24 MSTR 4.44 TECHNOLOGY
25 CAVM 4.36 TECHNOLOGY
26 EMAN 4.22 TECHNOLOGY
27 ESIO 4.22 TECHNOLOGY
28 SATC 4.19 TECHNOLOGY
29 ESIC 3.95 TECHNOLOGY
30 SOLR 3.90 TECHNOLOGY

On the backs of Greek-IMF/EU deal

Developing…

RBS -5%
STD -4.7%
BCS -4.4%
ING -4.3%
LYG -4.3%
AIB -4.3%
UBS -3.5%
DB -3.4%

HD and PFE are the only Dow components up today.

down 7% today to $26.

The dollar is up 1% today, -0.05% over the past week, -0.96% over the past month, -7% over the past 9 months and down 13.58% over the past year.

Some might call today’s strength a “dead cat bounce.”

“Our reserve is intended to address true emergencies, not politically inconvenient high prices,” Karen Harbert, CEO of the U.S. Chamber of Commerce Energy Institute, said in a statement.

Full Article

Market caps over $10 billion

No. Ticker % Change Market Cap
1 BMY 5.44 47,730,000,000
2 BBBY 4.85 12,850,000,000
3 RIMM 3.17 14,800,000,000
4 CCL 3.08 28,800,000,000
5 PAYX 2.66 10,750,000,000
6 CHL 2.26 179,590,000,000
7 CUK 2.13 29,390,000,000
8 NFLX 2.09 13,060,000,000
9 JNPR 1.63 15,740,000,000
10 PFE 1.28 160,230,000,000
11 BIDU 1.19 44,550,000,000
12 AAPL 1.12 302,160,000,000
13 HD 1.12 55,620,000,000
14 BRCM 1.09 17,270,000,000
15 DFS 1.02 12,870,000,000
16 LOW 0.95 30,190,000,000
17 M 0.93 11,990,000,000
18 TGT 0.90 32,270,000,000
19 CHKP 0.86 11,150,000,000
20 CLF 0.85 11,420,000,000
21 FDX 0.80 28,990,000,000
22 ADI 0.72 11,070,000,000
23 SNE 0.68 25,030,000,000
24 TV 0.67 13,220,000,000
25 MFG 0.65 33,640,000,000

———————————

No. Ticker % Change Market Cap
1 BBVA -6.05 52,440,000,000
2 GFI -5.36 10,490,000,000
3 AU -5.18 16,170,000,000
4 STD -4.50 100,990,000,000
5 CRH -4.36 14,950,000,000
6 ING -4.21 44,900,000,000
7 LYG -4.19 50,470,000,000
8 MTL -4.09 10,690,000,000
9 NXY -3.98 11,000,000,000
10 MRO -3.94 37,590,000,000
11 TLM -3.91 19,940,000,000
12 BCS -3.87 49,390,000,000
13 STO -3.67 78,140,000,000
14 AVB -3.61 11,270,000,000
15 CNQ -3.58 44,130,000,000
16 SSL -3.55 30,870,000,000
17 GGB -3.52 14,950,000,000
18 STJ -3.51 16,010,000,000
19 VE -3.47 13,410,000,000
20 UBS -3.40 68,310,000,000
21 KGC -3.37 17,890,000,000
22 ABX -3.35 43,900,000,000
23 HCP -3.32 15,290,000,000
24 PBR -3.29 214,190,000,000
25 CVX -3.26 203,180,000,000

30 million barrels is one and a half days of U.S. consumption.

No. Ticker % Change
1 ZSL 7.66
2 ERY 6.72
3 DRV 6.42
4 TVIX 6.01
5 DTO 5.29
6 FAZ 4.92
7 DUG 4.58
8 DZZ 3.86
9 SRS 3.79
10 SQQQ 3.42
11 SKF 3.36
12 SPXU 3.33
13 EDZ 3.23
14 BGZ 3.21
15 VXX 3.01
16 DXD 2.44
17 SMN 2.30
18 EUO 2.28
19 SDS 2.11
20 EEV 1.98
21 TZA 1.50
22 FXP 1.36
23 SH 1.12
24 TWM 1.00
25 UUP 0.94

No. Ticker % Change
1 BRID 14.67
2 BWEN 14.58
3 YRCW 14.47
4 NGSX 11.56
5 FTWR 11.43
6 MOBI 10.29
7 PARD 9.97
8 CNAM 9.77
9 BWOW 9.70
10 CBAK 9.62
11 SHZ 9.61
12 EMAN 9.26
13 WH 8.88
14 GCO 8.86
15 MLHR 8.50
16 SKY 8.39
17 CTE 8.08
18 CGA 7.78
19 PGTI 7.69
20 LXRX 7.59
21 LLEN 7.56
22 HTWR 7.51
23 MOTR 7.49
24 CTFO 7.38
25 FUL 7.38

——————–

No. Ticker % Change
1 DDSS -20.26
2 FLOW -19.38
3 NYNY -15.22
4 NEWN -12.06
5 STVI -11.67
6 KAD -11.11
7 SYSW -10.81
8 ONAV -10.12
9 TOPS -9.45
10 FENG -9.44
11 ANO -9.35
12 DAC -8.92
13 GTXI -8.80
14 FRO -8.76
15 FSIN -8.47
16 BKYF -8.28
17 IDSY -8.24
18 EXL -8.24
19 CHOP -8.15
20 THS -8.14
21 NOR -8.03
22 HMPR -7.93
23 COOL -7.82
24 BSPM -7.76
25 HEV -7.75

Reports Q1 (May) earnings of $0.72 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.62; revenues rose 9.7% year/year to $2.11 bln vs the $2.07 bln consensus. Co issues guidance for Q2, sees EPS of $0.77-0.82 vs. $0.82 Capital IQ Consensus Estimate. Comparable store sales in the fiscal first quarter of 2011 increased by ~7.0%, compared with an increase of ~8.4% in last year’s fiscal first quarter. During the fiscal first quarter of 2011, the Company repurchased ~$245 million of its common stock representing ~4.8 million shares. This included the completion of the $1 billion share repurchase program authorized in 2007. As of May 28, 2011, the balance remaining of the share repurchase program authorized in December 2010 was ~$1.892 billion dollars.

Brent is trading almost at a $19 premium to WIT right now.

Markets in snoozefest as a result.

Western Refining upgraded at Deutsche Bank As noted earlier, Deutsche Bank upgraded Western Refining to Buy from Hold with a $24 target. The firm upgraded the stock as it believes the company will benefit from its operational and financial leverage to the Brent-WTI spread, which the firm anticipates will remain wider for a longer period than expected.