Global Investing Roundups: Wednesday, April 30th, 2008

William Patalon III — Wed, 30 Apr 2008 10:53:29 +0000

Consumer Confidence Hits 5-Year Low; Citi to Offer $3 Billion in Common Stock; Denny’s Satisfied by 1Q Earnings; IBM Bumps Dividend; Merck Drops on FDA Rejection; Airline Shares Take-off; MasterCard’s “Priceless” Quarter; Gildan Shares Sacked for a 30% Loss.

The Conference Board’s consumer confidence index fell to 62.3 in April, a five year low, Bloomberg News reported. The Conference Board’s index dropped from a revised 65.9 reading in March that was higher than previously estimated.

Citigroup Inc. (C) said it would sell about $3 billion of its common stock in a public offering yesterday (Tuesday). Citigroup Inc. says it is has already received “strong interest” in the issuance, the Associated Press reported.

Denny’s Corp. (DENN) reported first-quarter net earnings of $5 million (5 cents a share), up from 1.16 million (1 cent per share) a year ago. The increase came despite a $40.8 million drop-off in revenue. The stock closed up 1 cent at $3.17, Thomson Financial reported.

IBM Corp. (IBM) increased its dividend payout 25% yesterday (Tuesday), reflecting the technology company’s confidence that it can thrive even with an uncertain economy, according to the Associated Press. At IBM’s annual shareholder meeting, the board of directors upped the quarterly dividend to 50 cents per share. For the past four quarters it had been 40 cents per share.

Shares of pharmaceutical firm Merck & Co. Inc. (MRK) shed 10% yesterday (Tuesday) with a decline of $4.30 to close at $37.14. On Monday, the Food and Drug Administration rejected Merck’s cholesterol drug, Cordaptive, and analysts warned it could have an inverse impact on Merck’s bottom line.

Airline shares soared yesterday (Tuesday) as crude oil dropped below $116 a barrel after reaching a record high on Monday of almost $120 a barrel, Reuters reported. Northwest Airlines Corp. (NWA) had the biggest gain with an increase of almost 23%, adding $1.74 per share to close at $9.36.

MasterCard Inc. (MA) shares gained 12% yesterday (Tuesday) after the world’s second-largest credit card processing company announced first quarter earnings. First-quarter net income increased to $446.9 million, or $3.38 a share, from $214.9 million, or $1.57, a year earlier, Bloomberg News reported. The stock gained $31.48 to close at $273.98.

Shares of Canada-based sportswear maker Gildan Activewear Inc. (GIL) plunged yesterday (Tuesday) after management lowered its outlook. The stock dropped $10.99, a decline of over 30%, to close at $24.93, after the company lowered both second-quarter and full-year estimates due to production shortfalls and slow sales, Forbes reported.

Global Investing Roundups Tuesday, April 15th, 2008

William Patalon III — Tue, 15 Apr 2008 15:03:10 +0000

JPMorgan Makes Schwartz an Offer; Retails Sales Rise; Berkshire’s Brandon Resigns; Brazilian GM Plant; Hungary for Oil; Denny’s Reports 1Q Decline; Goldman Sachs to Cut More Jobs; Fremont Sells Assets to CapitalSource

Chief Executive Alan Schwartz, forced to sell liquidity-starved The Bear Stearns Cos. Inc. (BSC) to JPMorgan Chase & Co. (JPM) in a fire sale less than three months into his tenure, has been invited to stay on as a senior dealmaker, Reuters reported, citing a person familiar with the situation. A formal agreement has yet to be reached and it is still possible Schwartz may leave the bank, the source said.

The Commerce Department announced yesterday (Monday) that retail sales increased 0.2% in March, Bloomberg News reported, slightly exceeding economists’ average expectations of no change. The increase was due to higher gasoline prices, as purchases excluding gas remained flat.

Joseph Brandon has stepped down as CEO of General Re Corp., a Berkshire Hathaway Inc. (BRK.A, BRK.B) subsidiary. Brandon was once considered a potential successor to Warren Buffett, but prosecutors have named Brandon as an unindicted co-conspirator in a scam to defraud investors, Bloomberg News reported. Four other former General Re executives have been convicted.

General Motors Corp. (GM) announced yesterday (Monday) that it would begin construction on a $200 million plant in Joinville City, Brazil. The plant will employ 500 workers and begin production of engines and other automotive parts by fourth quarter 2009, MarketWatch reported.

Exxon Mobil Corp. (XOM) announced yesterday (Monday) that it would begin drilling in southeast Hungary in search of oil reserves. Exxon recently signed a $75 million new energy development pact with MOL Hungarian Oil and Gas PLC to begin exploration in Hungary’s Mako Trough region, MarketWatch reported.

Restaurant-chain operator Denny’s Corp. (DENN) reported a 0.4% drop in first-quarter same-store sales for the first quarter. Same-store sales, or sales in stores open at least one year, rose 0.7% at company restaurants and fell 0.9% at franchised restaurants.

Goldman Sachs Group Inc. (GS) is slashing an undisclosed number of positions in mortgage and investment banking this month, Reuters reported. These latest cuts are in addition to the 1,500 employees, or 5% of Goldman’s work force, who lost their jobs since December because they were deemed the company’s poorest performers.

Fremont General Corp. (FMT) will sell the its retail banking assets to CapitalSource Inc. (CSE) for as much as $198 million. The sale includes $5.6 billion in deposits, $3 billion in cash and liquid investments and Fremont’s $2.7 billion stake in commercial real estate loans, Fremont said in a statement today. CapitalSource, the Chevy Chase, Maryland-based commercial lender, also agreed to loan Fremont as much as $200 million.

Contrarian Stock Market Investing News - Featuring Bargain Stocks » DENN

Global Investing Roundups: Wednesday, April 30th, 2008

Global Investing Roundups Tuesday, April 15th, 2008