Sunday, November 04, 2007
Weekend Stock Alert: November 4, 2007
Wall Street is fretting that the subprime carnage could spread to bond insurance firms, such as such as American International Group (AIG-$59.12), MBIA (MBI-$35.55), and Ambac Financial Group (ABK-$23.51). A key concern is big exposure to collateralized debt obligations.
American International Group Inc (AIG-$59.12) stockholder and former chief executive Maurice "Hank" Greenberg said in a regulatory filing that he anticipated holding discussions with other shareholders and third parties that would "improve ... the value of their investment."
Ballard Power Systems (BLDP-$5.02) confirms that it has been reviewing strategic decisions with regard to its automotive fuel cell assets due to the lengthy projected timeline to commercialization and high cost of development.
Citigroup Inc.'s (C-$37.94) Chairman and Chief Executive Charles Prince, beset by the company's billions of dollars in losses from investing in bad debt, resigned Sunday and is being replaced as chairman by former Treasury Secretary Robert E. Rubin.
The acquisition of Global Signal has positioned Crown Castle International (CCI-$40.55) as the largest tower operator in the U.S.A. is providing better-than-expected cost synergies for the merged entity, according to Zacks senior telecom analyst David Weissman, CFA.
The United Auto Workers union said early Saturday it reached a tentative four-year contract agreement with Ford Motor Co. (F-$8.95), avoiding the threat of a strike against the struggling automaker.
Google Inc (GOOG-$711.25) will unveil its mobile strategy on Monday, including a phone operating system and a broad alliance with multiple wireless service providers and handset vendors, people familiar with the matter said on Friday.
Goldman Sachs Group Inc. (GS-$229.60) took the unusual step of publicly denying market speculation that the top U.S. brokerage by market value could announce billions of dollars in write-downs.
Drugmaker Eli Lilly and Co. (LLY-$52.67) said its investigational anti-clotting drug, Prasugrel, was better able to prevent heart attacks than the standard treatment Plavix, but the drug led to excess bleeding, a study released on Sunday found, a shortcoming that could curb its usefulness.
Merck (MRK-$56.04) said it has plans to submit new data on its cervical cancer vaccine, Gardasil, to the US Food and Drug Administration before the year-end to seek an indication for women through age 45. Gardasil was approved by the FDA on June 8, 2006, and is recommended for use by girls and women ages 11 to 26.
An unconfirmed report in The Wall Street Journal on Friday suggested that Merrill Lynch & Co. (MER-$57.28) may have been offloading risky debt instruments to hedge funds, with agreements to repurchase them at a later date, in order to delay potential writedowns.
Metal Storm Ltd. (MTSX-$1.98), a multi-national defense technology company engaged in the development of electronically initiated ballistics systems, has executed a Memorandum of Understanding with iRobot Corp. (IRBT-$16.84). The agreement establishes a framework for collaboration and outlines the companies' plans for the joint pursuit of opportunities within the Global Defense and Security sectors.
Siemens AG''s (SI-$135.40) fourth-quarter results to be reported Thursday will be impacted by the sale of the VDO automotive unit to Continental AG, but close attention will also be paid to restructuring comments from Peter Loescher, the newly minted chief executive officer of the multi-industrial company, analysts said.
In his "Game Plan" segment on Mad Money Friday, Jim Cramer said it's time to buy Tekelec (TKLC-$12.89), "a nice little telephone-equipment supplier."
Trump Entertainment Resorts (TRMP-$6.79) shares fell more than 16 percent on Fiday, according to a Star-Ledger newspaper report that talks between the casino operator and Cordish Co. collapsed after Cordish's financial broker, Goldman Sachs balked.
The recent raid by federal and state officials on WellCare Health Plans Inc.’s (WCG-$27.37) Florida headquarters involves allegations that the insurer committed Medicaid fraud, according to a report by The Wall Street Journal.
Editor David J. Phillips does not hold any financial interest in the stocks discussed in this column. The 10Q Detective has a Full Disclosure Policy.