Archive for March 8th, 2008
Filed under: General Electric (GE), Time Warner (TWX), Walt Disney (DIS), Viacom (VIA), CBS Corp ‘B’ (CBS), News Corp’B’ (NWS), Politics
 Walt Disney Co. (NYSE: DIS) held its annual shareholder meeting last Thursday, and a couple interesting things were discussed, according to a Hollywood Reporter piece.
Apparently, a mutual fund manager challenged management regarding a controversial miniseries called The Path to 9/11, claiming that Disney has decided not to exploit the project on home video because of political considerations. I vaguely remember this miniseries, but it seems to have been critical of President Bill Clinton, and since his wife is running right now, well, maybe the decision was based on not interfering with whatever momentum she may (or may not) have. The mutual fund guy said CEO Bob Iger has been a donor of Clinton (as one can imagine, Iger denies that politics are involved here).
I am really not sure if this guy has a legitimate point or not, or what his bias is, but let me say this — if the miniseries did really cost $40 million, then it should be out on DVD, period. Shareholders should be angry about that. Content is king, new distribution platforms are the kingdom, and if this miniseries is controversial, then it might bring in a little bit of cash to the Mouse’s coffers. Now, I obviously realize that not releasing the miniseries isn’t going to break Disney — but I do want the company to aggressively exploit any and all content, especially one that cost $40 million to generate.
Continue reading Disney’s annual meeting: On Iger’s pay and a controversial miniseries
Permalink | Email this | Comments
Share This
 No Comments »
A reader of my post on reverse leverage writes: “[I get the impression] that these genius wall streeters who made gadzillions last year are going to bring on a catastrophic economic crisis w/ widespread life changing (in a negative way) implications for all of us, that there could be huge layoffs, massive decline in home values etc much more than we have seen, and no way to avoid it until we have given it time for us to work through the problem, regenerate equity slowly and rebuild up, over years, our economy — or do you not see this happening?”
My feeling is that what this reader fears could happen. It’s possible that people will need to cut back on borrowing which would mean that they could not afford to buy as much. This would normally cause prices to drop low enough that their lower, inflation-adjusted incomes would eventually gain in value relative to prices. After that they could resume their prior level of consumption.
But the Fed is cutting interest rates which are driving up prices by weakening the dollar - not to mention strong demand from China and India. So you have a battle between three competing forces. If the weaker dollar and strong developing country demand overwhelm the effect of U.S. consumers with less money to spend, then you’d have a vicious cycle which would squeeze U.S. consumers. Less spending would lead to lower production, more layoffs, and lower incomes.
Continue reading Our economic future
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Earnings reports, Conventions and conferences, Annual meetings, Google (GOOG), IAC/InterActiveCorp (IACI), Chevron Corp (CVX), Kroger Co (KR), Amgen Inc (AMGN), Texas Instruments (TXN)
.gif) Monday, March 10
Tuesday, March 11
Wednesday, March 12
- FDA Oncologic Drugs Advisory Committee Meeting on Schering-Plough Corp.’s (NYSE: SGP) sBLA for Pegintronfor treatment of melanoma at 8:00 am.
- Freddie Mac (NYSE: FRE) to host analyst/investor meeting at 8:30 am.
- Hot Topic (NASDAQ: HOTT) to report Q4 earnings; conference call at 4:30 pm.
Continue reading Market highlights for next week: Texas Instruments to hold mid-quarter update
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Wal-Mart (WMT), Columns
 Welcome to the 52nd installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.
In this week’s Wal-Mart Weekly, I’ll be looking at the retailer’s entrance into the world of open and frank communication with the world at all levels. Wal-Mart Stores Inc. (NYSE: WMT) appears to be allowing some of its purchasing and merchandising employees to blog openly about products in the categories they procure for all Wal-Mart’s store locations.
It would seem this is a touchy area, since allowing unfiltered blogging (bad and good) about products sitting on Wal-Mart shelves would not only get some vendors and suppliers charged up, but turn away sales to some potential customers as well.
Continue reading The Wal-Mart Weekly: Checking out the retailer’s unfiltered blog
Read | Permalink | Email this | Comments
Share This
No Comments »
A reader of my post on reverse leverage writes: “[I get the impression] that these genius wall streeters who made gadzillions last year are going to bring on a catastrophic economic crisis w/ widespread life changing (in a negative way) implications for all of us, that there could be huge layoffs, massive decline in home values etc much more than we have seen, and no way to avoid it until we have given it time for us to work through the problem, regenerate equity slowly and rebuild up, over years, our economy — or do you not see this happening?”
My feeling is that what this reader fears could happen. It’s possible that people will need to cut back on borrowing which would mean that they could not afford to buy as much. This would normally cause prices to drop low enough that their lower, inflation-adjusted incomes would eventually gain in value relative to prices. After that they could resume their prior level of consumption.
But the Fed is cutting interest rates which are driving up prices by weakening the dollar - not to mention strong demand from China and India. So you have a battle between three competing forces. If the weaker dollar and strong developing country demand overwhelm the effect of U.S. consumers with less money to spend, then you’d have a vicious cycle which would squeeze U.S. consumers. Less spending would lead to lower production, more layoffs, and lower incomes.
Continue reading Our economic future
Permalink | Email this | Comments
Share This
No Comments »
With oil hitting a record $106 this week, this seems like a relevant question. My feeling is that the U.S. has the right to demand the increase. I believe in freedom of speech and see no reason why that freedom of speech should be constrained when it comes to market matters.
Obviously, OPEC is free to respond as it sees fit. I don’t think that the current U.S. administration actually wants the price of oil to drop - however, it wants to be seen as being sympathetic to the interests of those who are paying to enrich the oil producers.
Meanwhile, if the U.S. was serious about wanting the price of oil to drop, it would take market actions that would prompt OPEC to reduce production. One such action would be to reduce oil consumption enough to make the current level of production unprofitable for OPEC.
Continue reading Does the U.S. have the right to demand that OPEC increase supplies?
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Earnings reports, Conventions and conferences, Annual meetings, Google (GOOG), IAC/InterActiveCorp (IACI), Chevron Corp (CVX), Kroger Co (KR), Amgen Inc (AMGN), Texas Instruments (TXN)
Monday, March 10
Tuesday, March 11
Wednesday, March 12
- FDA Oncologic Drugs Advisory Committee Meeting on Schering-Plough Corp.’s (NYSE: SGP) sBLA for Pegintronfor treatment of melanoma at 8:00 am.
- Freddie Mac (NYSE: FRE) to host analyst/investor meeting at 8:30 am.
- Hot Topic (NASDAQ: HOTT) to report Q4 earnings; conference call at 4:30 pm.
Continue reading Market highlights for next week: Texas Instruments to hold mid-quarter update
Permalink | Email this | Comments
Share This
No Comments »
Filed under: Deals, Bad news, Law, Bank of America (BAC), Countrywide Financial (CFC)
The FBI is probing whether Countrywide Financial (NYSE: CFC) committed securities fraud by making false statements about the mortgage bank’s deteriorating financial position.
The Wall Street Journal (subscription required) reports that a “potential issue facing the company is whether it has been candid in its accounting for losses. People familiar with the matter said that Countrywide’s losses may be several times greater than it has disclosed.”
Aside from the potential civil and criminal issues at stake, the investigation could kill the takeover of Countrywide by Bank of America (NYSE: BAC). It is not clear whether the mortgage company can make it as an independent operation if the big bank withdraws it offer. If auditors and the government determine that CFC losses are much greater than represented, it might drive the mortgage firm into insolvency.
The Bank of America deal is probably the only way that Countrywide shareholders can get any money for their shares. The company’s stock has dropped from a 52-week high of $42.24 to just above $5, which is not much above its 52-week low.
The news reports of the FBI probe is likely to push shares lower. If new, significant losses have to be reported, the price of CFC’s stock may go to zero.
Douglas A. McIntyre is an editor at 247wallst.com.
Permalink | Email this | Comments
Share This
No Comments »
With oil hitting a record $106 this week, this seems like a relevant question. My feeling is that the U.S. has the right to demand the increase. I believe in freedom of speech and see no reason why that freedom of speech should be constrained when it comes to market matters.
Obviously, OPEC is free to respond as it sees fit. I don’t think that the current U.S. administration actually wants the price of oil to drop - however, it wants to be seen as being sympathetic to the interests of those who are paying to enrich the oil producers.
Meanwhile, if the U.S. was serious about wanting the price of oil to drop, it would take market actions that would prompt OPEC to reduce production. One such action would be to reduce oil consumption enough to make the current level of production unprofitable for OPEC.
Continue reading Does the U.S. have the right to demand that OPEC increase supplies?
Permalink | Email this | Comments
Share This
No Comments »
Filed under: From the boards, Citigroup Inc. (C), Merrill Lynch (MER), Countrywide Financial (CFC), Politics
 Pity the hapless ex-CEO who has to explain to the U.S. Congress how he got millions for failing at his job. It’s like the person in the horror movie who doesn’t realize that a bad guy is lurking in the dark woods even though that’s clearly indicated by the scary music. In this case, the knife-wielding psycho Jason Voorhees is being played by Rep. Henry “I haven’t met a microphone I didn’t like” Waxman (D-CA).
What did former Countywide Financial Corp. (NYSE: CFC) Chief Executive Angelo Mozilo, former Citigroup Inc. (NYSE: C) CEO Charles Prince and former Merrill Lynch & Co. (NYSE: MER) head Stan O’Neal expect to happen? That they would finally be able to tell their “side” of the story? That they would be able to counteract media perceptions that they are a bunch of greedy pigs who were rewarded for their incompetence? Apparently, these once mighty kings of the boardroom were that deluded.
Mozilo was the most outrageous, telling the House Committee on Oversight and Government Reform that, “In short, as our company did well, I did well.” The Wall Street Journal (subscription required) noted that Waxman, who locked horns recently with baseball great Roger Clemens, wasn’t buying it.
Continue reading Grandstanding aplenty at congressional hearing on executive pay
Permalink | Email this | Comments
Share This
No Comments »
|
