Cleveland-Cliffs, investor Falcone, to meet over controversial takeover-WSJ
Philip Falcone, head of hedge fund Harbinger Capital Partners and the largest shareholder of Cleveland-Cliffs (CLF), is soon expected to meet with company executives to discuss a takeover by the company that he opposes, reports the Wall Street Journal. Cleveland-Cliffs, an iron ore producer, wants to buy Alpha Natural Resources (ANR) for $10B, but Falcone thinks the company should instead be selling itself.
Apple stores open earlier to accommodate demand for iPhone 3g-Apple Insider
Due to the unprecedented demand for Apple’s (AAPL) new iPhone, the company’s retail outlets will open up to two hours earlier each day. Stores that normally open at 10 am will not open at 8 am, according to the company’s availability page, and will additionally ramp up staff. Apple will also pre-qualify some customers who line up at the store and will set aside an iPhone 3G “to be picked up later”.
Earnings surge at connector maker Amphenol -IBD
Amphenol (APH) makes connectors for electronic and fiber optic systems. It’s growth is strong and it also is very successful at making timely acquisitions and increasing their margins. In a fragmented but growing market Amphenol has tripled its sales over the past six years, according to Investor’s Business Daily’s “The New America”. The company raised its earnings estimates for 2008 to $2.34 to $2.38 a share or more than five times what it made back in 2002. It also raised revenue guidance for the year to about $3B, 15% higher tha last year. Their sales are to the military, and commercial aerospace and mobile device industries.”They are the consolidators in an extremely fragmented marketplace,” says Amit Daryanani at RBC Capital Markets.
XTO Energy-XTO: Estimates and target lowered, maintain Outperform@FBCO
Credit Suisse said XTO’s recent deals are designed to extend growth, not hide problems. The firm said the Q2 report was slightly better than expected on price, while production and operating costs were in line. The analyst lowered XTO estimates to reflect the $1.25B equity offering, higher DD&A rate, and higher interest expense. Target to $67 from $78.
Sohu.com-SOHU reports Q2 EPS $1.07 vs. consensus of 67c
Reports Q2 revenue $102M vs. consensus of $96.52M
Sohu.com-SOHU sees Q3 EPS $1.00-$1.05 vs. consensus of 71c
SOHU sees Q3 revenue $112M-$116M vs. consensus of $106.75M.
SOHU volatility at 70 into Q2 revenues up 162% year-on-year
SOHU, Chinese portal, is recently up $5.89 to $88.71. SOHU say’s Q2 2008 total revenues up 162% year-on-year and 20% quarter-on-quarter; Non-GAAP fully diluted EPS up 417% year-on-year and 68% quarter-on-quarter. SOHU over all option implied volatility of 70 is above its 26-week average of 64 according to Track Data, suggesting larger price movement.
American Int’l-AIG August volatility Elevated at 104 into EPS & Guidance
AIG is scheduled to report Q2 EPS on August 7. AIG August option implied volatility is at 104, September is at 75; above its 26-week average of 50 according to Track Data, suggesting larger price movement.
U.S. equity futures still point to a lower open
Stocks are still looking lower to start the week but are off of their earlier lows. The price of crude oil is higher on concerns about Iran’s nuclear program and the state of the U.S. economy. The futures also received a boost from better than expected earnings from Kraft (KFT) and Dow component Verizon Communications (VZ). The financial sector received another dose of bad news over the weekend when more banks were shut down, including First Nation Bank of Nevada and First Heritage Bank NA of California. Both banks’ deposits were taken over by Mutual of Omaha.
Ceradyne-CRDN: See potential for revenue growth after 2008@NEED
After Ceradyne reported higher than expected Q2 EPS, Needham maintained their Strong Buy rating on the shares, as they believe the company can grow its revenue after 2008 from vehicle armor, as well as several other sectors, including aluminum and oil extraction, and ceramic materials.
Coal: China concerns overstated, fundamentals remain strong@LYON
Calyon believes concerns regarding China’s slowing economy are overstated and that domestic coal equities are discounting this. The firm reiterates their Buy rating on ACI, BTU, and FCL.
Bucyrus-BUCY initiated with a Buy@GABE
Gabelli thinks the current cycle for mining equipment will last at least another 6-8 quarters.
MasterCard-MA: View risk/reward as balanced into the quarter@JPMS
JP Morgan thinks upside is likely and remains bullish longer term with an Overweight rating, but finds the risk/reward as balanced into MA’s Q2 results.
Visa-V estimates raised ahead of Q3 results@JPMS
JP Morgan believes the company’s pricing initiatives on U.S. crossborder transactions will more than offset slower U.S. growth. They recommend the shares ahead of the quarter and keep an Overweight rating on the stock.
PCLN upgraded to Overweight from Market Weight@TWPT
Thomas Weisel raised its PCLN estimates above guidance based on acceleration in the domestic business, potential increase in online sales due to the European hotel slowdown, and a potential Q2 beat. Target $145.
AKAM: Expect company to report strong Q2 results@KBRO
Kaufman Bros. predicts that Akamai will report in-line Q2 results, as they note that the company’s media and e-commerce sectors have tracked well. However, the firm maintained their Hold rating, as they think the company’s valuation adequately reflects its outlook.
