WALL STREET JOURNAL: Last Friday’s Yahoo (YHOO) shareholder vote which supported CEO Jerry Yang with an 85% margin has been questioned by Capital Research Global Investors, a fund that owns about 6% of the company’s shares, according to the Wall Street Journal. Capital Research wants Broadridge Financial Solutions, an independent vote counter, to review the results…NEW YORK TIMES: The New York Times reported that the Securities and Exchange Commission is looking into whether the Value Line (VALU) overcharged the mutual funds it advises. The company alluded to the fact that a settlement could impact its operating performance…The New York Times also reported that Freddie Mac (FRE) CEO Richard Syron discarded internal warnings that could have protected the mortgage giant from some of the problems it now faces, more than two dozen current and former executives said…LA TIMES: The Los Angeles Times reported that Disney (DIS) will raise admissions prices at its domestic parks. One-day tickets for those 10 and older to Disneyland in Anaheim will rise from $66 to $69 and for children ages 3 to 9, the price will increase from $56 to $59…CNBC: CNBC reported that officials at Lehman Brothers (LEH) have held talks about the possible sale of its entire investment management division, including its Neuberger & Berman asset management unit…
AT&T to offer “cloud computing”-WSJ
AT&T (T) has decided to enter the crowded field of companies offering “cloud computing” or a computer networking and storage service that can replace a company’s data center and also provide for on demand payment for bandwidth. Google (GOOG), IBM (IBM) and Amazon.com (AMZN) are offering the service, and Verizon Communications (VZ) is also expected to enter the market.
Lehman mulls sale of its investment management division-CNBC
Lehman Brothers (LEH) executives have discussed the possibility of selling the company’s entire investment management unit in order to raise capital, according to inside sources.
Merrill CEO says he had to stop the bleeding-NY Times
Merrill Lynch (MER) CEO John Thain defended his decision to sell billions of dollars of mortgage investments for pennies on the dollar by saying that he had to do something to stop Merrill’s hemorrhaging and reassure its employees. Thain added that he did not know if he would have had a similar opportunity again in the future.
Asian Markets Wrap-Up for Tuesday, August 5
Stocks dropped, led by commodity producers, after oil and copper prices declined. JAPAN: The Nikkei 225 inched down 0.14% to 12,914.66. Inpex, an energy company, lost 4%, while Sumitomo Metal retreated 3.7%. Nippon Steel (NISTY) dipped 4.9%. Nippon Paper rallied 13% and Oji Paper (OJIPY) gained 4.4%. Credit card issuer Credit Saison (CSASF) jumped 11%. HONG KONG: Shares declined, led by financial institutions. The Hang Seng Index lost 2.51%, closing at 21,949.75. Bank of East Asia (BKEAY) sank 8.3%, after it announced that its 1H08 profit tumbled 52%. Stock operator Hong Kong Exchanges fell 4.7% and HSBC (HBC) declined 2.2%. Cnooc (CEO), an energy company, dove 6.3%, while another energy producer, PetroChina (PTR), lost 2.5%. AROUND ASIA: China’s CSI 300 Index fell 2.53%, while South Korea’s KRX 100 dipped 0.57% and Indonesia’s Jakarta Composite lost 1.89%…Japanese drug company Daiichi Sankyo received permission from the Indian government to buy India’s Ranbaxy Laboratories (RBXLY) for up to $4.6B.
Priceline-PCLN option prices Elevated into EPS
PCLN is recently up $1.38 to $113.10 in pre-open trading. PCLN is expected to report Q2 EPS after the market close today. PCLN August 110 straddle is priced at $15.55. PCLN September option implied volatility of 70 is above its 26-week average of 58 according to Track Data, suggesting larger price fluctuations.
Louis Navellier’s Quantum Growth Update
Louis Navellier’s Quantum Growth Update is positive on MT, EME, MOS, TRA, and X; cautious on WTI.
Deckers Outdoor-DECK: Recommend ahead of 8/7 report@LAZA
Lazard expects DECK to beat and raise given continued Ugg momentum.
