WALL STREET JOURNAL: The Wall Street Journal reported that a spokesperson for New Corp. (NWS) said the company has dropped out of the bidding for Tribune’s (TRB) Newsday. This leaves Cablevision (CVC) as the apparent winner of the auction…According to people familiar with the matter, the Wall Street Journal reported that American International Group’s (AIG) airplane-leasing unit is considering a split from the company. The people said International Lease Finance Corp have grown “increasingly concerned” the company will be hurt by AIG’s financial troubles…FINANCIAL TIMES: Royal Dutch Shell (RDS.A) and Spain’s Repsol (REP) are pulling out of one of Iran’s biggest gas projects, the $10B-plus development of phase 13 of South Pars, the world’s largest gas field, the Financial Times reported…BLOOMBERG: Bloomberg reported that HSBC Holdings (HBC) set aside a smaller-than-forecast $3.2B for bad loans in the U.S. The bank also said its Q1 profit was higher than Q107..
RIMM introduces the BlackBerry Bold Smartphone
For customers seeking a smartphone that makes a bold statement, Research In Motion introduced the admirable BlackBerry Bold(TM) smartphone. Crafted from premium materials, inside and out, that radiate elegance with a dramatic presence, the BlackBerry Bold is designed to give business professionals and power users unprecedented functionality and performance in an intuitive BlackBerry smartphone. It is the first BlackBerry smartphone to support tri-band HSDPA high-speed networks around the world and comes with integrated GPS and Wi-Fi, as well as a rich set of multimedia capabilities. From its lustrous black exterior, satin chrome finished frame and stylish leather-like backplate, to its stunning display, sophisticated user interface and newly designed full-QWERTY(i) keyboard, the BlackBerry Bold smartphone is a symbol of accomplishment and aspiration.
RIMM: Take money off the table, expectations high@PACS
PacCrest says the Blackberry Bold announcement is already in the numbers. They would take some money off table as sub additions are tracking in-line and expectations are getting high. PacCrest long-term views RIMM as a top pick and reiterates their Outperform.
JASO reports Q1 EPS 14c vs. consensus of 10c
Reports Q1 revenue $160M vs. consensus of $146.6M.
JASO sees FY08 EPS $1.03B-$1.14B vs. consensus of $984.4M.
LEAP: Build-out brings risk and potential, maintain Hold@STFG
After Leap generated higher than expected net adds in Q1 and announced build-out guidance for coverage of 36M POPs by mid-2009, Stanford believes the build could lead to subscriber growth, but they think Leap’s build-out plans also increase its execution risk.
Semiconductor Equipment: Fundamentals bottoming but no near-term drivers@PACS
PacCrest expects bookings weakness to remain weak through Sept Quarter. Memory pricing remains low which should affect capacity expansion and cap spending. PacCrest prefer stocks with strong product cycles such as ASML, VSEA and LRCX. They are cautious on CYMI as they view it as overvalued, and that KLAC is likely to fail to meet the high investor expectations, and gross margins could be worse. PacCrest is neutral on AMAT, NVLS and ACLS.
DECK target raised to $154 from $146, maintain Outperform@RBCM
RBC raised their estimates to reflect the continued strength in the company’s brands and would continue to buyers of the stock.
ECA announces plans to split company into two
The Board of Directors of EnCana Corporation has unanimously approved a proposal to split EnCana into two highly focused energy companies - one a natural gas company with an outstanding portfolio of early life, North American, natural gas resource plays and the other a fully integrated oil company with industry-leading in-situ oilsands properties and top-performing refineries, as well as an underlying foundation of reliable oil and gas resource plays.
