Category Archives: Corporate
“The latest rebalancing of the Nasdaq 100 index NDX will see Tesla Motors TSLA join the index to replace Oracle ORCL , which is moving to the New York Stock Exchange and will no longer be eligible for inclusion.
The move is a testament to Tesla’s rapidly advancing shares, and another feather in the cap of CEO Elon Musk. But it may also signal a slowdown for the stock, judging by what happens when stocks join the Nasdaq 100.
Ryan Detrick of Schaeffer’s Investment Research found that stocks added to the Nasdaq 100 over the years have tended to underperform those that are removed.
“When you are added it means things are going great. Now things can continue to go great, but it does set up a higher bar,” Detrick said in e-mailed comments.
The stocks removed from the Nasdaq 100 going back to 1995 have averaged a return of 22% in the year following their removal, while those added to the index have only averaged a return of 11.6% over the subsequent year.
Detrick said as far as Tesla goes, “this isn’t a sell signal. Still, buying this stock three months ago when it was 40 and very few believed in it was a far better entry. Now it is a popular stock with a very devoted fan base. Just remember the bar is set higher now and any disappointment could lead to a larger than expected sell off.”…”
“Whole Foods is recalling Crave Brothers Les Freres cheese in response to an outbreak of a bacterial infection that has sickened people in several states and killed at least one person.
Whole Foods says the cheese may be contaminated with Listeria monocytogenes. It was sold in 30 states and Washington DC under names including Les Freres and Crave Brothers Les Freres. The cheese was cut and packaged in clear plastic wrap and sold with Whole Foods Market scale labels. The company is posting signs in its stores to inform customers about the recall.
Officials said cases have been identified in at least three states…”
“Commerzbank AG (CBK), the German bank forced to raise capital five times in the past four years, fell the most since March on concern that exposure to southern European debt may add to its financial woes.
Commerzbank dropped as much as 6.9 percent to 5.73 euros in Frankfurt, the lowest intraday price on record and taking losses this year to 46 percent. The 47-member Stoxx 600 Banks Index fell 3 percent.
“There seems to be renewed concern about holdings of peripheral bonds in Italy, Spain and Portugal given the public finance exposure the bank has,” Riccardo Rovere, an analyst at Mediobanca SpA (MB), said by telephone from Milan.
Commerzbank’s declines were surpassed only by lenders in Portugal and Spain in a sell-off sparked by the second resignation of a Portuguese government minister in two days, which sent the country’s 10-year bond yield to 8 percent for the first time since November.
Commerzbank had 2.9 billion euros ($3.8 billion) of exposure to debt in Portugal and 12.2 billion euros to Spain at the end of March, company filings show. Those figures combine sovereign, banking, commercial real estate and other debt.
Both GM and Honda have already begun fielding small test fleets of hydrogen-powered vehicles—as have a number of competitors including Toyota and Mercedes-Benz—but the goal of the new effort is to help solve resolving technical hurdles while driving costs down to mass-market levels. The makers also hope that by making a serious commitment to fuel cell technology they will encourage the energy industry to expand the availability of hydrogen, something essential to encourage consumer acceptance.
“The widespread use of future fuel cell vehicles requires a significant advance in cost reduction…and in the refueling infrastructure that will support them,” Tetsuo Iwamura, president of American Honda Motor Co., was expected to say according to remarks prepared for a Tuesday news conference. “Two companies can do more together than the simple sum of our individual efforts.”….”
“DETROIT (TheStreet) — Once again in June, automakers are reporting strong sales led by double-digit increases in pickup truck sales, a sign of the reviving economy and the strength of the home construction market.
Ford (F_) said sales rose 13% to 235,643 units, its best total in June since 2006. F-Series sales rose 24% to 68,009, F-Series’ best June since 2005. Chrysler said sales rose 8% to 156,686 units, its best June total since 2007. Ram truck sales rose 23% to 30,935, tops among Chryslerbrands…”
On Monday, Mr. Pincus said he is giving up the CEO reins next week to Don Mattrick, the current head of Microsoft’s Xbox division.
Mr. Pincus will remain as Zynga’s chairman and chief product officer. He and Mr. Mattrick will report directly to the board and will form a new executive committee to help manage the company’s operations.
“Don is unique in the game business,” said Mr. Pincus in a statement. “He can execute in multiple domains—hardware, software and network.”…”
The maker of iPhones is seeking protection for the name which is categorized as being for products including a handheld computer or watch device, according to a June 3 filing with the Japan Patent Office that was made public last week. Takashi Takebayashi, a Tokyo-based spokesman for Apple, didn’t respond to a message left at his office seeking comment on the application.
Apple has a team of about 100 product designers working on a wristwatch-like device that may perform some of the tasks now handled by the iPhone and iPad, two people familiar with the company’s plans said in February. Samsung, the world’s biggest maker of smartphones, is developing a wristwatch, the company said in March…..”
“U.K. banks’ share of global industry profit fell by half to 5 percent since 2007 as Chinese lenders gained during the financial crisis, according to research by The Banker magazine.
Chinese banks saw their share of pretax profit soar to 29 percent in 2012 from 4 percent in 2007, according to the study of 1,000 lenders published today.
U.K. bank earnings slumped in the period as companies including Royal Bank of Scotland Group Plc were bailed out by taxpayers and compelled to write down the value of loans, cut jobs and sell assets. Britain’s four largest lenders will have eliminated about 189,000 jobs by the end of this year from their peak staffing levels, bringing employment to a nine-year low, according to data compiled by Bloomberg….”
“SandRidge Energy Inc. SD +2.17% on Wednesday ousted Chief Executive Tom Ward after dissident investors pushed for his removal. But the founder’s fall is being cushioned by about $90 million, one of the larger severance packages seen in the energy industry.
Mr. Ward’s departure wasn’t a surprise. SandRidge came under fire last year from activist investors for Mr. Ward’s high pay, a weak stock performance and its dealings with businesses controlled by Mr. Ward and his family. A spokesman for Mr. Ward said he wasn’t available to comment.
In March, the Oklahoma City company settled a proxy fight with a big activist shareholder, agreeing to either fire Mr. Ward or give control of its board to the activist, hedge fund TPG-Axon Capital LP. SandRidge appointed four directors nominated by the investor at that time.
SandRidge promoted President and Chief Financial Officer James Bennett to CEO. Mr. Bennett, who will remain president, worked in private equity before joining SandRidge in 2011….”
“Alcatel-Lucent SA (ALU) Chief Executive Officer Michel Combes plans to sell at least 1 billion euros ($1.3 billion) of assets and reduce costs by another 1 billion euros to stem losses and focus on businesses including ultra-high speed Internet.
Shares jumped as much as 5.6 percent after Combes said that the time the plan is fully executed in 2015, the company will have positive free cash flow and be more tightly focused on its most remunerative areas after cutting out legacy operations.
“It’s a strategic turning point for the company,” he said during a conference call. “For the first time, it’s making strong industrial choices.”
Combes, who took over almost three months ago after predecessor Ben Verwaayen’s asset sales and firings failed to achieve a turnaround, wants to execute his plan by 2015 to keep the French network equipment vendor’s cash from further dwindling after seven consecutive years of decrease. Alcatel then will look to cut its debt by 2 billion euros by selling shares on the stock market or through further asset sales, the Paris-based group said in a statement.
Alcatel-Lucent shares were up 5.2 percent at 1.49 euros at 9:04 a.m. in Paris, more than double what they were worth when they hit a 23-year low in October.
“CHARLOTTE, N.C. (AP) — Duke Energy’s chief financial officer will take over for retiring CEO Jim Rogers at the end of the month.
Lynn Good, 54, has been CFO since 2009. She will also take a seat on the company board.
Rogers will retain his board chairman seat until he steps down at the end of the year.
The board plans to name one of its independent directors as chair-elect in the coming weeks. That person will become chairman when Rogers departs….”
Sprint, Clearwire’s largest shareholder, said it sued Dish in state court in Wilmington, Delaware, yesterday to try to halt Dish’s $4.40-a-share bid for Clearwire. Sprint and Dish are both vying to acquire the Bellevue, Washington-based firm.
Dish’s offer is designed to coerce Clearwire shareholders into handing over their shares “or else be left holding stock in a corporation that will be handicapped by unlawful corporate governance restrictions, onerous debt provisions and subject to massive monetary damages claims,” according to a copy of a complaint provided by Sprint’s lawyers. The filing couldn’t be confirmed in Delaware Chancery Court after regular business hours yesterday…..”
“…. “We have a very robust fix and a next-battery-generation system that I think is going to serve this airplane well for the future,” said McNerney. Boeing shares were up more than 1% in trading.”
“Netflix has struck its largest original content deal ever, investing further in kids’ content with new original series from DreamWorks Animation.
It’s a multi-year deal for exclusive access to over 300 hours of programming, starting in 2014. And the deal is global, covering all Netflix’s territories. This gives the streaming media giant exclusive access to first-run kids content that until now has only been available on the likes of Viacom’s Nickelodeon or the Disney channel.
The two companies aren’t announcing which shows are in the works, just saying the new shows will be “inspired by characters from DreamWorks Animation’s hit franchises and upcoming feature films as well as the vast Classic Media Library, which DreamWorks acquired in 2012.” The deal follows the announcement in February that Netflix and DreamWorks were collaborating on their first Netflix Original Series: Turbo, which premieres, July 17.
The deal also gives Netflix exclusive access to DreamWorks Animation features, starting with ‘The Croods,’ along with ‘Turbo’ and ‘Peabody and Sherman.’…”