FINANCIAL TIMES
The Financial Times reported that Bain Capital, Blackstone (BX) and General Electric’s (GE) NBC universal will acquire The Weather Channel properties from Landmark Communications for approximately $3.2B in a leveraged buy-out. The Weather Channel will be run separately…A top Goldman Sachs (GS) trader is defecting to GLG Partners (GLG), the UK’s second-largest hedge fund. Goldman’s Driss Ben-Brahim, a partner in the firm and the head of its emerging market trading business, will take over GLG’s $1.2B emerging markets special situations fund, the Financial Times reported…NEW YORK POST: Take Two Interactive (TTWO), which makes video games, will probably sign video game creator Ken Levine to a new contract. The deal would bolster Take Two’s argument that its value exceeds the $25.74 per share that Electronic Arts (ERTS) has offered as a takeover price for the company, The New York Post believes…REUTERS: Reuters reported that Deutsche Bank (DB) is the only bidder remaining for Citigroup’s (C) German retail operations. Sources said Commerzbank (CRZBY) dropped out of the running on Friday…
Weekly subtractions from the Investor’s Business Daily-100
The following are subtractions from the Investors Business Daily-100 list for the week of July 3: Sociedad Quimica Y Minra (SQM), Companhia Siderurgic (SID), Metalico (MEA), Hill International (HIL), Pericom Semiconductor (PSEM), Darwin Proffessional Underwriters (DR), Priceline.com Inc. (PCLN), China Medical Tech (CMED),Gulfmark Offshore (GLF), Intrepid Potash Inc (IPI), Concur Technologies (CNQR), Rowan Companies (RDC), Kansas City Southern (KSU), Newmarket Corporation(NEU), Morningstar Inc (MORN), Celanese Corp (CE), Wabtec (WAB), Airgas (ARG).
Weekly additions to the Investors Business Daily-100
The following are additions to the Investors Business Daily- 100 list for the week of July 3: Celgene Corp. (CELG), Plexus Corp (PLXS), Monolithic Power Systems (MPWR), Flir Systems (FLIR), Atheros Communications (ATHR), Netlogic Microsystems (NETL), Nordson Corporation (NDSN), Stanley Inc. (SXE), Devon Energy Corp (DVN), Gulf Island Fabrication (GIFI), Halliburton (HAL), Axsys Technologies (AXYS), Forest Oil Corp. (FST), Plains Exploration & Production (PXP), True Religion Appare l(TRLG), Helmerich & Payne (HP), Schnitzer Steel (SCHN), Credicorp Ltd.(BAP).
RIG: Believe company will benefit from strong deepwater market@GABE
Gabelli contends that Transocean will reap the benefits of higher day rate and term contracts in the deepwater market. The firm believes investors’ concerns about possible competition to Transocean from Petrobras (PZE) is overdone, as they note that the two companies recently signed a 10 year drilling contract. The firm maintained their Buy rating on Transocean.
ZION target lowered to $33 from $38, maintain Outperform@RBCM
RBC believes management chose to hold off on a larger stock offering since it could not get the pricing it wanted, and did not see an urgency to raise new capital. They adjusted their estimates to reflect the company’s Q2 update and keep an Outperform rating.
U.S. equity futures point to a slightly higher open
U.S. equity futures are pointing to a slightly higher open as gold, oil and natural gas prices have weakened. This week kicks off the second quarter earnings season, and Alcoa (AA) will be the first of the Dow components to report tomorrow after the close. Although investors are anxious to see how profits are holding up amid rising fuel prices and overall inflation, the Wall Street Journal prefaced Alcoa’s earnings report by saying that the company will be pressured by higher costs and lower aluminum prices. The Journal did say that the outlook for aluminum is strong, based on ongoing building in emerging countries and China, but that investors will be anxious to hear the company’s comments.
MI target lowered to $15 from $22@RBCM
RBC lowered their target following the company’s Q2 preannouncement and believes downside risks to credit remains. Shares remain Sector Perform rated.
