Source

Divi goes from $0.25 to $0.30 and they will do a $15 Billion stock purchase

As usual money makes criminal problems go away…..

via economist.com

THE past few years have been “as miserable as I can remember”, says Johnny Boyer of Boyer Allen Investment Management, a British hedge fund focused on Asia. The fund, which looked after $1.9 billion at its peak, faced the prospect of spending the next few years trying to claw its way back to pre-crisis asset levels. Instead the founders decided to shut the fund and give investors their money back.

Others have also had enough. “I’ve been doing this for 15 years and I’ve never seen as many people give up as in the last three months,” says Luke Ellis of Man Group, a large listed fund. This trend is distinct from the round of closures in 2008. Then, managers were hit by investors’ redemptions and had no choice but to close; today many are electing to walk away.

For some managers, the markets have become too stressful. Running a hedge fund today is “three times as much work for a third of the fun,” says one. But many are motivated by economics. Hedge funds typically get paid a 2% management fee on assets to cover expenses and a 20% performance fee on the returns they achieve for investors. Most funds do not earn performance fees unless they outperform their peak level or “high-water mark”. At the end of 2011, 67% of hedge funds were below their high-water marks, according to Credit Suisse, and 13% have not earned a performance fee since 2007 or earlier.

Funds can survive off a management fee for a couple of years, but four is a long time to go hungry. Most managers were banking on a recovery in 2011 but the average hedge fund slid by 5.2%—much worse than the S&P 500, which returned 2%. Poor performance is causing changes in the way the industry markets itself (see article). It also means many funds will have to wait even longer to earn a performance fee again. According to Morgan Stanley, 18% of hedge funds are more than 20% below their high-water marks.

 

 

Smaller funds have been more likely to close than their larger peers. That’s partly because it used to be possible to run a hedge fund with $75m under management. Today funds need at least double that amount because administrative and compliance costs are higher than ever. Larger funds also depend less on performance fees because their management fees bring in so much cash. John Paulson, a hedge-fund giant whose flagship fund was clobbered last year, has pledged to make up investors’ losses but his fund is so large that he can easily afford to carry on. That risks distorting the original point of hedge funds—that they are small, limber operations which come and go often (see chart).

For investors, it is generally a good thing if underperforming managers are returning cash and not milking them for fees. But others worry that high-water marks could skew funds’ investing decisions. Managers who have not earned a performance fee in years could take bolder bets to get back into the black. Leverage levels have been creeping up. Some may prefer to go out with a bang, not a whimper.

“JPMorgan Chase & Co. took procedural shortcuts and used faulty account records in suing tens of thousands of delinquent credit card borrowers for at least two years, current and former employees say.

The process flaws sparked a regulatory probe by the Office of the Comptroller of the Currency and forced the bank to stop suing delinquent borrowers altogether last year.

The bank’s errors could call into question the legitimacy of billions of dollars in outstanding claims against debtors and of legal judgments Chase has already won, current and former Chase employees say.

For the banking industry at large, the situation at Chase highlights the riskthat shoddy back-office procedures and flawed legal work extends well beyond mortgage servicing.

“We did not verify a single one” of the affidavits attesting to the amounts Chase was seeking to collect, says Howard Hardin, who oversaw a team handling tens of thousands of Chase debt files in San Antonio. “We were told [by superiors] ‘We’re in a hurry. Go ahead and sign them.'”

Hardin left the bank in 2010 to work in a different industry….”

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“Chevron Corp. (NYSE: CVX) plans to increase its production of oil-equivalent barrels by 20%, compared with its 2011 production of about 2.7 million barrels/day. In its analyst presentation today, the company points out that its massive Gorgon liquefied natural gas (LNG) project offshore of Australia will begin operation over the next couple of years and that these “long-lived assets … will generate significant cash flow for decades.” In its latest Form 10-K, Chevron, which owns 47.3% of the Gorgon project and is the operator, said the total cost of the project to date is $37 billion. The company also noted that it holds leases on more than 8 million acres of unconventional shale plays in North America.

Chevron’s total production in 2011 was lower by about 110,000 barrels/day compared to 2010 production. The company attributed this to natural reservoir declines, but points to its increased lease holdings in the US and its major capital projects as the source of production growth. Chevron’s capital spending plan through 2017 comprises 37% of total spend on LNG projects, 28% on deepwater projects, 14% on conventional oil projects, and just 2% on unconventional oil & gas projects.

The spending on LNG projects reflects the high prices that Asian buyers are willing to pay when compared with prices for natural gas in the US, where shale gas drilling has cut prices to well below $2.50/thousand cubic feet. The price for an equal amount of natural gas in Asia is expected to reach $18 by this summer.

Chevron’s presentation is available here.”

Full article

Tough sledding here, but Intel will try…..

Source

Carmike Cinemas Inc. (CKEC) : The fourth-largest U.S. theater chain posted fourth-quarter revenue that exceeded the average analyst projection, data compiled by Bloomberg show.

Ebix Inc. (EBIX) rose 2.3 percent to $23.22. The insurance software provider increased its quarterly dividend to 5 cents from 4 cents.

Majesco Entertainment Co. (COOL) : The video game publisher said fiscal 2012 adjusted earnings may be 25 cents to 35 cents a share. Analysts project 35 cents a share on average, data compiled by Bloomberg show.

Midas Inc. (MDS) surged 26 percent to $11.35. The operator of car-service shops agreed to be acquired by TBC Corp. for $310 million in cash, or $11.50 per share, a 28 percent premium to yesterday’s closing price.

Urban Outfitters Inc. (URBN) fell 5.1 percent to $28. The operator of its namesake, Anthropologie and Free People brands reported fourth-quarter earnings that missed the average analyst estimate.

Yahoo! Inc. (YHOO) (YHOO US): The owner of the most popular U.S. Internet portal accused Facebook Inc. in a federal court lawsuit of infringing patents related to Internet advertising and information sharing. Lawyers for Yahoo, in a complaint filed in federal court in San Jose, California, seek a court order barring Facebook from infringing 10 patents and awarding it triple damages.

Gapping up

CKEC +13.2%, AWI +6.4%,  RIO +2.8%, ESRX +2.2%, MT +2.2%, DB +2.1%, BHP +1.8%, SINA +1.6%, RENN +1.2%, BIDU +0.8%,  GOLD +1%, AA +0.8%,

RBS +2.6%, HBC +2.3%, DB +2.1%, ING +2.1%, CS +1.9%, C +1.8%, WFC +1.2%, BAC +1%, BEAM +4%,  ESRX +2.2%, MHS +1.7%, WOLF +20.8% ,

REN +7.7%,  GNC +3.7%, EBIX +2.3%,

Gapping down

COOL -11.8%, SB -7.7%, XPO -6.5%, URBN -5.5%, MWE -3.6%, SLXP -2.4%, MDVN -1.1%,  BWEN -4.6%,  CLNE -3.9%, XPO -6.5%, BCRX -3.6% ,

MWE -3.4%,  WCRX -3% , SLXP -2.4%,  MDVN -1.1%,

In Play

On the Wires

“Japanese billionaire Kazuo Okada, saying Wynn Resorts Ltd. (WYNN) is run by Chairman Steve Wynn as a “personal fiefdom,” is challenging the redemption of his own 20 percent stake in the company at an $800 million discount.

Aruze USA, through which Okada invested in Wynn Resorts, disputes that any redemption occurred because Wynn is legally barred from redeeming the securities, lawyers for Okada and the holding company said in a counterclaim filed yesterday in federal court in Las Vegas….”

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The story….

Another hit for Nokia investors…..

Naughty by nature….

“Wells Fargo & Co. (WFC) and Citigroup Inc. (C) may join banks unleashing more than $9 billion in dividend increases and share buybacks if they get passing grades this week on the Federal Reserve’s annual stress test.

Thirteen of the 19 largest U.S. lenders may say they’ll pay out $3.79 billion in extra dividends this year and buy $5.52 billion of additional shares, according to estimates of six analysts compiled by Bloomberg. That’s 30 percent more than they spent last year. San Francisco-based Wells Fargo probably will offer the biggest difference at a combined $4.16 billion, followed by Citigroup with $2.92 billion….”

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BOSTON (MarketWatch) — Anthera Pharmaceuticals ANTH -47.51% shares plunged nearly 50% to $3.67 on Monday during the first trading session after it announced it was halting a key Phase III study. Late Friday, Anthera said it stopping a Phase III clinical trial for its heart-drug candidate varespladib over concerns that it was ineffective.

SOURCE

Apparently some customers may have experienced a stuck throttle….

This is the DECK analyst, Sam Poser, so you should pay attention.

Lowering Rating from Buy to Neutral: Stock Through Our Price Target. Long Term Story Remains Intact

Source 

Ann Inc. (ANN) : The women’s clothing retailer is poised to rise to the mid-$30s in the next 12 to 18 months if its Ann Taylor revenue recovers and margins improve, Barron’s reported, citing Marshall Kaplan of Morgan Stanley Smith Barney.

CBS Corp. (CBS) : Profit for the owner of the most- watched broadcast network will climb by $180 million this year, helped by political advertising, Chief Executive Officer Les Moonves said at a conference.

Glencore International Plc (GLCNF) (GLCNF US): The largest publicly traded commodities trader made a 3.5 billion-pound ($5.49 billion) bid for Viterra Inc. (VT) , Canada’s largest grain handler, The Sunday Telegraph reported, without saying where it got the information.

Google Inc. (GOOG) rose 0.3 percent to $602. The Web search engine owner increased its share of the U.S. market to 66.4 percent in February, according to comScore.

Harman International Industries Inc. (HAR) : The maker of audio equipment for cars and homes is poised to rise 20 percent as more drivers equip their vehicles with satellite navigation displays and voice-controllable communication devices, Barron’s reported.

McDonald’s Corp. (MCD) : Shares of the world’s largest restaurant chain may be overpriced, Barron’s reported in its “The Trader” column.

Michael Kors Holdings Ltd. (KORS) (KORS US): The luxury-goods maker and retailer named for the designer who founded it filed for a secondary offering of 25 million shares.

New Frontier Media Inc. (NOOF) : The Boulder, Colorado- based adult entertainment company confirmed it received an unsolicited buyout offer from Longkloof Ltd. at $1.35 a share. New Frontier rose 17 percent to $1.32 on March 9 after Longkloof said it made the offer.

Oracle Corp. (ORCL) fell 1.7 percent to $29.63. The world’s second-largest software maker was cut to hold from buy at Jefferies Group Inc., citing “greater challenges” to its engineered systems strategy.

PepsiCo Inc. (PEP) (PEP US) increased 0.7 percent to $63.60. The world’s largest snack-food maker said that former executive Brian Cornell rejoined the company as chief executive officer of the Americas foods division. Current Americas foods CEO John Compton was promoted to president of the company.

Gapping up

TUDO +127.4%, OREX +8.1%, RENN +3.7%, CCL +3.5%, BUD +1.4%, NVS +0.8%, CDTI +28.6%, FCEL +8% , AIS +6.8%, MBT +4.7% ,  ZOLL +21%,

NOOF +1.5% , DANG +6.6%, RENN +3.7%, SINA +0.8%, SOHU +0.6%,  PEP +0.6% , SZYM +5.6%, CHL +1.4% , CRR +1% ,  HSY +0.9%,

PCBC halted for a take over

Gapping down

ANTH -49.2%, YOKU -4.8%, KORS -4.7%, BAC -1.2%, NBG -3.1%, BCS -2.5%, IRE -2.2%, LYG -1.4%, BAC -1.2%, C -0.6%, RES -25.5% (split ),

TBET -14.6%, KORS -4.7%, ORCL -1.3% , UAL -1.4%,  SJM -0.5%, GIS -1%,

In Play

On the Wires