WALL STREET JOURNAL: Merger talks between UAL Corp ’s (UAUA) United Airlines and US Airways Corp. (LCC) have been put off for now, the Wall Street Journal reported. United is reportedly close to an alliance with Continental Airlines (CAL)…Harris Corp (HRS) is for sale and the company has begun to hear from interested parties, the Wall Street Journal also reported. Harris is looking for $75 to $80 per share. Speculation about the bidders includes General Dynamics Corp. (GD) and Northrop Grumman Corp. (NOC)…CHARLESTON GAZETTE: The Charleston Gazette reported that Chesapeake Energy (CHK) has decided not to build its Eastern Division headquarters in Charleston, West Virginia in the wake of a West Virginia Supreme Court ruling on May 22…APPLEINSIDER: AppleInsider reported that Apple (AAPL) is expected to announce a back-to-school deal soon that will encourage students to buy new Macs by offering some of the largest incentives in the history of the company…
Hess Corp. focuses on oil exploration and development-IBD
They have 1,300 gas stations on the East Coast and are known for their popular toy trucks, but these days Hess Corp. (HES), an integrated oil company, is focused on oil exploration and development from Brazil to Ghana, according to Investor’s Business Daily’s “The New America”. The company sees big gains coming, beginning next year from from fields in the Gulf of Thailand, deep-water Gulf of Mexico and Indonesia. “It is drilling potentially game-changing prospects in Brazil, Australia, Ghana, Libya and the U.S. Gulf of Mexico,” says Merrill Lynch’s Erik Mielke. Analysts see $8.74 a share in 2008, a 46% increase over last year. First quarter per share earnings of $2.34 doubled last year’s. If oil prices were to slide, analysts then expect a 5% drop next year to $8.27 per share.
JCG: Would buy on weakness, maintain Outperform@OPCO
After J. Crew reported slightly higher than expected Q1 EPS but provided much lower than expected Q2 and 2008 EPS guidance, Oppenheimer believes the company’s guidance is probably conservative. The firm thinks J. Crew’ still has superior products, management team, and multi-channel strategy.
Marathon Oil-MRO assumed with a Buy, target $77@SBSH
Citigroup believes the stock can reach their target price if the company’s executes and delivers on its Alvheim and Neptune projects later this year.
INTC: Expect easy comparisons to come to an end in Q2@PIPR
Piper thinks INTC is on track to meet the mid-point of its guidance but believes the easy year-over-year comparisons are coming to an end in Q2. Further, the firm thinks INTC’s market share gains in servers are likely near a peak. Shares remain Neutral rated.
