BloggingStocks

Closing Bell: Earnings keep gains coming

Jon Ogg — 2008-07-23T16:21:00+00:00

Filed under: After the bell, Sirius Satellite Radio (SIRI), Market matters, AT and T (T), Bank of America (BAC), Costco Wholesale (COST)

Today we saw another market gain, but several key stocks gave back some recent gains. The oil inventories report as well as reports Hurricane Dolly only took down a max of 8% of Gulf of Mexico and nearby production, helped lower oil prices over $3.00 to under $125.00 per barrel. Today was rather light on the economic front so the market was led higher mostly thanks to earnings from DJIA components. Longer-term rates rose on Fed comments today calling for rates to rise sooner rather than later, although that was independent and slightly different than the actual Beige Book comments.

Here are today's unofficial closing bell levels:

DJIA 11632.70 (+30.30)
S&P500 1282.05 (+5.05)
NASDAQ 2325.88 (+21.92))
10YR T-Note 4.148 (+0.05%)
TOP ANALYST UPGRADES
TOP ANALYST DOWNGRADES
52-WEEK LOWS

AT&T Inc. (NYSE: T) was the winner of DJIA components after reporting earnings this morning, particularly since it has lost nearly one-third of its value. Shares were up 4% at $33.11 in today's final minutes.

Bank of America (NYSE: BAC) rose after announcing it was keeping its 64 cents dividend as Ken Lewis had promised. The real charm though was the new $3.75 billion common stock buyback plan to be executed over the next 12 to 18 months. Shares were up 3.7% at $33.57 in today's final minutes.

Costco Wholesale (NASDAQ: COST) tanked after warning earnings would fall short for the quarter due to higher energy, higher oil and higher wholesale costs that it hasn't passed on to consumers. Shares were down 12% at $63.28 in today's final minutes.

Sirius Satellite radio Inc. (NASDAQ: SIRI) was today's winner on multiple reports that the last FCC swing vote from the commissioners was going in favor of approving the merger. Shares were up over 10% at $2.63 in today's final minutes.

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Sirius acquisiton of XM to finally get FCC approval

Jonathan Berr — 2008-07-23T15:59:00+00:00

Filed under: Deals, Products and services, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Politics

Sirius Satellite Radio Inc.'s (NASDAQ: SIRI) $3.5 billion acquisition of rival XM Satellite Holdings Inc. (NASDAQ: XMSR) might at long last be approved by the Federal Communications Commission, according to the Wall Street Journal.

"Republican commissioner Deborah Taylor Tate is the only FCC member left to vote on the deal and she is expected to do so shortly, two FCC officials close to the negotiations said," the paper said. "She is expected to sign off on the deal in exchange for a consent decree that resolves several enforcement issues involving the satellite radio companies and a combined fine of about $20 million, an FCC source close to the deal."

Even with the regulatory hurdles just about cleared, the future of satellite radio is far from clear. As my colleague Douglas McIntyre noted earlier today, losses at both companies are narrowing but their subscription growth rates are slowing. Both firms also are more than $1 billion in debt.

Though I am a big fan of the medium, I wonder sometimes whether its moment in the sun has past. Remember BetaMax and 8-track players were considered cutting edge at one time.

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Sirius deal with XM could still be killed

Douglas McIntyre — 2008-07-23T09:22:00+00:00

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Politics

Three of the commissioners of the FCC have voted on the Sirius (NASDAQ: SIRI) merger with XM Satellite (NASDAQ: XMSR). Two have voted in favor, and one has voted against. That leaves two other votes. In other words, the deal could still be killed.

One of the remaining commissioners has indicated that he would vote for the merger if the companies would agree to a six-year price cap on their services. According to The Wall Street Journal, "The offer was viewed as an attempt to start negotiations, but the companies so far are showing little interest in haggling."

Is it any wonder? The most recent earnings reports from the two companies indicate that, while their losses are getting smaller, their subscription growth rates are slowing. Each firm has more than $1 billion in debt and neither has ever had an operating profit. In other words, if the companies cannot raise their rates the chances of them becoming profitable are significantly curtailed.

The FCC may be putting Sirius and XM in an almost impossible position. If they are willing to make moves which could hurt their earnings longterm, they may get the votes they need for approval. If not, the merger could be scuttled.

The future of satellite radio is now based on two bad outcomes.

Douglas A. McIntyre is an editor at 247wallst.com

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Closing Bell: Market defies cautious earnings

Jon Ogg — 2008-07-22T16:16:00+00:00

Filed under: Apple Inc (AAPL), Sirius Satellite Radio (SIRI), Caterpillar (CAT), American Express (AXP), Wachovia Corp (WB), UAL Corp (UAUA)

Hank Paulson led the charge this morning talking about the need and credibility of the GSE's. Oil was up for a while but after Tropical Storm Dolly headed further south than the oil and gas infrastructure that locked in heavy oil selling. The major focus continues to be earnings and financial stocks in particular. Below are today's unofficial closing bell levels:
DJIA 11601.60 (+134.26)
S&P500 1276.80 (+16.80)
NASDAQ 2303.96 (+24.43)
10YR T-Note 4.097 (+0.03%)
52-Week Lows
Top Analyst Calls

American Express Company (NYSE: AXP) was one of the more poor financial stocks today after the company choked on earnings last night. It is also facing deteriorating business despite it being thought of as the highest quality credit card around. Shares were down 9.2% at $37.13 in today's final minutes.

Apple Inc. (NASDAQ: AAPL) was a big-sized loser in the morning after the company beat earnings but gave cautious guidance last night. Shares actually recovered sharply from this morning's losses and were "only" down 4.4% at $158.92 in today's final minutes.

Caterpillar Inc. (NYSE: CAT) rose after its earnings beat expectations. While the guidance ahead is in line with some cautious comments on the economy, the great word about emerging markets had shares up 2% to $74.73 in today's final minutes of trading.

Sirius Satellite Radio Inc. (NASDAQ: SIRI) was down almost 4% at $2.32 in today's final minutes after word came out that an FCC commissioner was voting against the merger.

UAL Corp. (NASDAQ: UAUA) traded up a monster 64% to $8.21 by today's final minutes of trading. The airline lost about $2.7 billion on high fuel costs, but the company also disclosed that it had raised its job cut goals and raised about $1.7 Billion in asset related sales.

Wachovia Corporation (NYSE: WB) managed to buck bad earnings, severe writedowns, and a monster dividend slash. But the company said it would not need to raise any dilutive capital via share sales. In today's final minutes shares were up about 17% at $15.45.

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Closing Bell: Great recovery continues, except for tech

Jon Ogg — 2008-07-18T16:13:00+00:00

Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Sirius Satellite Radio (SIRI), Citigroup Inc. (C)

Today might have been one of the more boring options expiration dates. If you pretend that technology stocks weren't a part of the market, today was rather stable considering the major bounces we have seen. Oil stayed under $129.00 per barrel, which didn't give the bears much meat to chew on. We had essentially no government economic data today. Here are today's unofficial closing levels:

DJIA 11,496.24 (+49.58)
S&P500 1260.65 (+0.33)
NASDAQ 2282.78 (-29.52)
10YR T-Note 4.081% (+0.043%)
52-WEEK LOWS
Top Analyst Upgrades
Top Analyst Downgrades

Apple Inc. (NASDAQ: AAPL) is set report earnings after the close of trading. Read a FULL EARNINGS PREVIEW. Shares of Apple were down over 3% at $166.10 in today's final minutes of trading.

Citigroup Inc. (NYSE: C) was a pleasant surprise for the markets. Imagine losing $2.5 Billion and that still being "less bad" than almost everyone was calling for. Shares were up 9% at $19.60 in today's final minutes of trading.

Google Inc. (NASDAQ: GOOG) shares were down a tad under 10% at $480.14 after the company's earnings report yesterday was deemed a miss and after the company warned that the current ad spending market is under pressure from macro-trends.

Microsoft Corporation (NASDAQ: MSFT) also saw its share of weakness with shares down 6.5% in the final trading minutes at $25.73 as its earnings were also deemed light. Most operations look like they are holding up but the company warned about its online business being under pressure.

Sirius Satellite Radio Inc. (NASDAQ: SIRI) saw shares up a sharp 8% to $2.27 by the final minutes today as the last FCC commissioner has reportedly outlined terms to approve the 18 month old satellite radio merger.

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Option Update: XM Satellite Radio (XMSR) volatility elevated as SIRI deal vote nears

Paul Foster — 2008-07-18T09:32:00+00:00

Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio (NASDAQ: XMSR) closed at $8.44 Thursday.

XMSR and Sirius (NASDAQ: SIRI) announced a merger of equals in February of 2007. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.

Jonathan Adelstein, an FCC commissioner, said he'd vote to approve a merger between XMSR and SIRI if they cap prices and increase public interest and minority programming. The FCC Chairman Kevin Martin recommended approval of the SIRI-XMSR merger this spring. Adelstein would be the third of five commissioners to support the deal; a majority is needed.

XMSR August option implied volatility of 133 is above its 26-week average of 84 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Before the bell: MAT, FRE, AMD, TEVA, HON, SLB, SIRI

Melly Alazraki — 2008-07-18T08:14:00+00:00

Filed under: Before the bell, Earnings reports, Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Schlumberger Limited (SLB), Advanced Micro Dev (AMD), Mattel, Inc (MAT), Honeywell Intl (HON), Teva Pharm Indus ADR (TEVA)

Before the bell: Citi earnings push futures higher despite MER, GOOG, MSFT disappointments

Advanced Micro Devices (NYSE: AMD) stock is down 6.6% in premarket trading after the company posted its seventh consecutive quarterly loss of $1.19 billion, or $1.96 per share, missing Wall Street estimates. The operating loss would have been 60 cents a share, heftier than the loss of 52 cents a share from analysts polled by Reuters Estimates. Following the report, AMD also announced that CEO Hector Ruiz would be replaced by COO Dirk Meyer. Ruiz will stay on as executive chairman.

The Wall Street Journal reports that Freddie Mac (NYSE: FRE) is considering raising capital by selling as much as $10 billion in new shares to investors. FRE stock is down again this morning after the recent wild swings in share price. This morning FRE shares are trading over 5.7% lower in premarket action.

Mattel Inc. (NYSE: MAT) shares rose nearly 4% in after-hours trading following second-quarter financial results. The toy maker's profit fell by nearly half, but results still beat Wall Street expectations. Global Barbie sales dropped off 6%.

Teva Pharmaceutical Industries (NASDAQ: TEVA) ADS are declining over 4.3% in premarket trading after the generic drug maker said it will buy rival generic drug company Barr Pharmaceuticals (NYSE: BRL) for more than $7 billion. The total purchase price is $66.50 per share, a 16% premium to Barr's $57.17 closing price Thursday. BRL shares are up over 6.6% in premarket trading.

Honeywell (NYSE: HON) shares are rising nearly 5.2% in premarket trading after its second quarter earnings rose 18% to $723 million, or 96 cents per share, beating estimates of 94 cents a share, according to analysts surveyed by FactSet Research.

Meanwhile, Schlumberger (NYSE: SLB) shares are also rising nearly 2.4% in premarket trading after it said its second-quarter profit increased nearly 13% to $1.42 billion, or $1.16 a share. Analysts polled by Thomson Financial on average expected earnings per share of $1.12 cents.

Late Thursday, the AP reported that according to their sources, the deciding voice in the the Federal Communications Commission told the news service he vote in favor of the $3.1 billion merger between satellite radio companies XM (NASDAQ: XMSR) and Sirius (NASDAQ: SIRI) if the companies agree to tougher conditions.

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Digital radio tuners finding homes in new cars

Richard Driver — 2008-07-08T16:44:00+00:00

Filed under: Products and services, Consumer experience, Ford Motor (F), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Technology

USA Today reported Tuesday that "more carmakers are adding digital tuners in their bid to woo audiophiles and add electronics." The report comes on the heels of South Korean based Hyundai Motor Company offering digital -- or HD -- radio in new Genesis model sedans up for sale this month. Germany-based BMW already offers HD radio tuners as a stand-alone option, and Ford Motor Company (NYSE: F) owned Volvo Cars will begin offering HD Radio as a standard feature in 2009 for most of the company's models.

HD radio has picked up significantly since 2002, when only 11 stations (AM and FM) offered a digital signal in addition to traditional analog signals. Now, more than 1,700 stations offer HD radio as well as second and third signals of specialized shows because digital signals use less bandwidth than analog signals. USA Today reports that carmakers moving in this direction is a major positive move for HD radio since the car is a major venue for radio. The newspaper also speculates that HD radio might prove a major threat for XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc. (NASDAQ: SIRI) subscriptions as well as any merger those companies make.

Unfortunately, many insiders point to many consumers unfamiliarity with and not knowing about HD radio as a problem for the product's success. It seems likely that with carmakers picking it up as a standard feature, more consumers will become aware and adopt HD radio as a venue, if at most because it will be a standard feature. Regardless, HD radio much like HD television is another development that gives consumers better quality and offers technology that audiophiles can enjoy and embraces new developments that are occurring concurrently with music industry and digital tracks.

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Smart bond plays, retiring on a shoestring & top kitchen values - Today in Money 7/1

Allan Halprin — 2008-07-01T08:59:00+00:00

Filed under: Microsoft (MSFT), eBay (EBAY), Starbucks (SBUX), Ford Motor (F), General Motors (GM), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Money and Finance Today, Anheuser-Busch Cos (BUD), Countrywide Financial (CFC), United Parcel'B' (UPS)

In the News:

· Stocks Look Weak at Start of First Day of 3Q

· EBay Ordered to Pay Louis Vuitton, Fendi & Others Millions for Knockoff Sales

· InBev to Continue Pursuit of Anheuser-Busch

· Florida Sues Countrywide Over Mortgages

· General Motors Stock Hits 54-Year Low

· Wilbur Ross Says Run-Up in Oil Prices Is a Bubble

· UPS Pilot Rescues Debilitated Farmers

· Microsoft's Plan B for Search

· Starbucks Makeover Isn't Going Well

· Could a Ford, Chrysler Merger Be in the Making?

· Cable, Satellite Customer Satisfaction Falls, Poll Finds

· Howard Stern May Have a Sirius Dilemma As Company Looks to Cut Costs

Bonds: Smarter Plays for Darker Days
Thinking of Treasuries or other fixed-income plays as the stock market sinks? Here's what to look for.
Bonds: Smarter Plays for Darker Days - BusinessWeek

Who's Minting the Most Millionaires? Not the U.S.A.
A new survey finds when it comes to minting the wealthy, India and China now outpace the U.S. which isn't even in the top 10 anymore. Other countries also outpacing America include Brazil, Korea, Indonesia, Slovakia, Singapore, UAE, Czech Republic and Russia.
A Millionaire Boom In The East - Forbes.com

How to Retire on a Shoestring
You often have to be a little frugal to make a retirement budget work. The $27,798 median income for American households headed by someone 65 or older doesn't offer much breathing room when gas, groceries, and out-of-pocket healthcare costs all are conspiring to make retirement more difficult. Here are eight ways to stretch your retirement dollars.
8 Ways to Stretch Your Retirement Dollars - US News and World Report
In the News: Retirees Downsizing Their Dreams

Top Kitchen Values
You can create a great kitchen by following advice from Consumer Reports' experts and from 8,000 readers who told us about their remodeling projects. Plus, seven mini makeovers for less than $5,000.
ConsumerReports.org - Kitchen values: secrets of a successful remodel

Best Light Ice Creams
Fat might be bad for you, but it sure tastes good. Consumer Reports sampled 10 light ice creams, and even among these more healthful options, the two with the most fat and calories were the winners in our best light ice creams ratings.
ConsumerReports.org - Best light ice creams

Top Airport Bars
The good news in travel? It's easier than ever to drown your sorrows at the airport with a nice glass of wine, an artisan beer, or a good cocktail. Here are a host of upscale new drinking establishments which means business travelers no longer have to languish at dreary, dingy airport bars.
Booze at Airports - Business Travel Column - Joe Brancatelli - Seat 2B - Portfolio.com

Strategic Flying Maneuvers
Major airlines are reinstating minimum-stay requirements. Here's how to get around them.
Getting Around Airlines' New Minimum-Stay Requirements - SmartMoney

Secrets of a Millionaire Matchmaker, For Free!
Men hate short hair," says Patti Stanger, CEO and owner of The Millionaire's Club, and star of the hit Bravo series The Millionaire Matchmaker. Oh yeah, apparently women are not too fond of small-time earners, either. What do you mean you don't have $50,000 to get your dating life going? Well, at least MainStreet has some secrets from the Millionaire Matchmaker free of charge.
The Secrets of The Millionaire Matchmaker, For Free! | MainStreet

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Sirius forecasts merger savings, investors flee

Douglas McIntyre — 2008-06-30T18:29:00+00:00

Filed under: Forecasts, Deals, Apple Inc (AAPL), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

Sirius Satellite Radio, Inc. (NASDAQ: SIRI) laid out what it thought its financials would look like next year after a merger with XM Satellite Radio Holdings (NASDAQ: XMSR). The market wasn't impressed.

Sirius had an odd way of expressing how it would save money next year. According to the company, "Total synergies, net of the costs to achieve such synergies, for the combined company are expected to be approximately $400 million in 2009." The firm also said it expected positive free cash flow.

All of that good news sent Sirius down almost 9% to $1.91. Volume was heavy at over 35 million shares, so the selling turned into a stampede.

Sirius forgot to mention the one number that Wall St. really wants to see which is what it thinks the revenue for the merger company will hit for 2009. Without that, it is impossible to determine whether any of the cash flow numbers are believable.

Investor concerns about Sirius are now more on the sales side. The idea that the marriage will allow for expense cuts is already assumed because both companies are in the same business.

The top line is critical. Observers fear that subscription growth is dropping quickly and that potential customers are turned to other devices including multi-media handsets and Apple Inc. (NASDAQ:AAPL) iPods. The single largest source of business for the company is new car buyers. For now, they are in short supply.

Sirius can't make its case if it can't say what its revenue prediction is, and defend it with assumptions. It look like the company is afraid to do that.

Douglas A. McIntyre is an editor at 247wallst.com.

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Closing Bell: Bulls win small victory; Bears win 3 quarters in a row

Jon Ogg — 2008-06-30T16:26:00+00:00

Filed under: General Electric (GE), Sirius Satellite Radio (SIRI), Merck and Co (MRK), MBIA Inc (MBI)

The good news is that we saw a Monday buying interest spree after a horrible prior week. Sellers did come in late in the day after the markets traded higher earlier, putting the markets on the verge of a negative day. The bad news is that today was the end of the quarter and it looks like we have now finished down three consecutive quarters in the U.S. stock market. Whether or not it is a bear market seems to depend on whom you consult, but things are tough for the public investor right now. This morning oil was around $143.00 on fresh Iran-Israel tensions and here were the unofficial closing bell levels today:

DJIA 11,338.78 (-7.73)
S&P500 1,279.21 (+0.83)
NASDAQ 2,292.98 (-22.65)
10YR T-Note 3.979% (-0.011%)
TOP 10 ANALYST CALLS

General Electric Company (NYSE: GE) did finally see a bounce after a research analyst came out showing anecdotal evidence that the current discount to the market is very close to major inflection points. Shares of GE were up 1.7% at $26.69 in today's final minutes.

MBIA Inc. (NYSE: MBI) was down more than 10% on liquidity concerns, but the company's stock rallied sharply and shares were up 1.4% at $4.23 in today's final minutes after the company refuted the bad reports out there.

Merck & Co. (NYSE: MRK) finally saw another winning day after a competing cervical cancer vaccine was delayed by the FDA. Merck shares were up 2.4% at $37.86 in today's final minutes of trading.

Myriad Genetics Inc. (NASDAQ: MYGN) was a disappointment today after the company said it would stop development of its Alzheimer's treatment after results failed to show benefits. The stock was down almost 5% at $45.63 on huge volume of 13 million shares in today's final minutes.

Sirius Satellite Radio (NASDAQ: SIRI) saw shares hit by more than 7% down to $1.94 late in the day after the company outlined its first round of savings and forecasts for the merged satellite radio players.

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XM Satellite Radio volatility up; Shares at five-year low into FCC vote

Paul Foster — 2008-06-27T08:53:00+00:00

Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite (NASDAQ: XMSR) closed at $7.38.

XMSR and Sirius Satellite (NASDAQ: SIRI) announced a merger of equals in February of 2007. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.

The FCC Chairman Kevin Martin recommended approval of the SIRI-XMSR merger. The FCC Commissioners could rule on the proposed merger soon.

XMSR July option implied volatility of 114 is above its 26-week average of 79 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Closing bell: Bulls prevail as oil barrels cheapen

Jon Ogg — 2008-06-19T16:22:00+00:00

Filed under: After the bell, Major movement, Earnings reports, Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

Stocks were up today, but less than you might imagine after a large drop of more than $4.00 on oil in late-day prices. So much for Goldman Sachs' raising oil target again today, as well as lifting the oil services sector and upping price targets for some of the sector's stocks .

Here are today's unofficial closing bell index levels:

DJIA 12062.93 (+33.87)
S&P500 1342.86 (+5.05)
NASDAQ 2462.07 (+32.36)
10YR T-NOTE 4.199% (+0.045%)
52-Week Lows
Top 10 Analyst Calls

Evergreen Solar Inc. (NASDAQ: ESLR) was one of the huge winners today with shares up over 20% at $12.33 in today's final minutes. The company announced a huge second round contract that added significantly to its backlog.

Huntsman Corporation (NYSE: HUN) imploded after its private equity buyout was officially notified as "being killed" by the buyers, and shares were down 38% at $12.79 at the end of the day. Mark that as an all-time low.

Pier 1 Imports Inc. (NYSE: PIR) was a horrible loser today after the company missed earnings and gave guidance that requires faith in management's ability to execute. Shares were down some 19% at $5.01 in the final minutes.

SandRidge Energy, Inc. (NYSE: SD) was down over 5% at $64.66 in late day trading with energy prices going lower. There was highly unusual options trading in this one that has never been seen before.

Sirius Satellite Radio Holdings Inc. (NASDAQ: SIRI) and XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) were hit horribly to 52-week lows after a key Goldman Sachs price target cut. Shares were down 12% and 17% respectively in today's final minutes of trading.

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Option Update: XM Satellite Radio volatility flat into FCC vote

Paul Foster — 2008-06-17T08:35:00+00:00

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio (NASDAQ: XMSR) - The FCC Chairman Kevin Martin recommended approval of the Sirius Satellite (NASDAQ: SIRI)-XMSR merger. The FCC Commissioners could rule on the proposed merger soon.

XMSR and SIRI announced a merger of equals in February of 2007. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.

XMSR July option implied volatility of 76 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Newspaper wrap-up: Hedge fund industry dominated by big firms

Laurie Pasternack — 2008-06-17T08:00:00+00:00

Filed under: Newspapers, Magazines, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Goldman Sachs Group (GS)

MAJOR PAPERS:

The Wall Street Journal reported that after years of rapid grows, many hedge funds are shutting their doors or merging with others, as expansion has dramatically slowed. As a result, the industry is being dominated mostly by big firms, such as Och-Ziff Capital Management Group LLC (NYSE: OZM), D.E. Shaw & Co., and Paulson and Co.
Shares of Ctrip.com International Ltd (NASDAQ: CTRP), China's major Internet travel booker with about 58% of the country's online travel business, have dropped about 30% in the last six weeks alone creating a possible buying opportunity, according to the Wall Street Journal's "Heard in Asia". Travel in China is expected to grow solidly in the long-term and Ctrip.com said it expects revenue to grow 30% for the three months ending June 30 from a year earlier.
In a move that could potentially usher in a new phase in the credit crunch, the Financial Times reported that The Goldman Sachs Group Inc (NYSE: GS) is said to be close to finalizing a plan to restructure a $7B investment vehicle formerly run by Cheyne Capital, a London-based hedge fund.

OTHER PAPERS:

The Washington Post reported the proposed merger between XM Satellite Radio Holdings Inc (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) was under fire yesterday by senior members of the Congressional Black Caucus, who said the deal does not provide enough opportunities for minority-owned programming.

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Closing Bell: Odd day with mixed readings

Jon Ogg — 2008-06-16T16:24:00+00:00

Filed under: General Electric (GE), Sirius Satellite Radio (SIRI), Lehman Br Holdings (LEH)

While today was a mixed day, overall it was far better than it could have been. Financial stocks saw a bit of a rebound as Lehman's world didn't look like it was coming to an end. Ben Bernanke gave a speech today but showed his concerns that rising health care costs are a huge concern for the economy. The NAHB also gave a low builder sentiment reading of 18, which matches recent lows. Oil did hit a new high despite the Saudi's pledge to boost production, but that was on the dollar and it did manage to come off of highs. These are unofficial index level closing prices:

DJIA 12264.77 (-42.58)
S&P500 1359.88 (-0.15)
NASDAQ 2473.08 (+18.58)
10YR T-Note 4.245% (-0.016%)
52-WEEK LOWS
TOP 10 ANALYST CALLS

Chiquita Brands International Inc. (NYSE: CQB) was the disaster of the day as shares were down some 29% in the final minutes after this mornings warning that cost hikes were going to create a wide earnings miss.
General Electric Company (NYSE: GE) was one of the most active names today. JPMorgan slashed its rating on the stock, but the move wasn't as bad as one might guess as shares even got back to positive before the end of the day. GE's stock was down 0.6% at $28.97 in today's final minutes of trading.

Lehman Bothers Holdings Inc. (NYSE: LEH) saw another rise after the company's earnings didn't indicate an implosion by the investment bank and brokerage firm, despite massive losses. Its shares were up some 5% at $27.14 in today's final minutes.

Shares of Sirius Satellite Radio (NASDAQ: SIRI) were finally given tentative merger approval today, but its shares were only up 3.5% at $2.63 in today's final minutes of trading.

SunPower Corporation (NASDAQ: SPWR) saw a large surge after its rating was raised to Outperform from Neutral at Credit Suisse in coverage this morning. In today's final minutes shares were up over 7.5% at $83.75.

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Cramer on BloggingStocks: Despite FCC Nod, Merger between Sirius and XM is far from complete

Jim Cramer — 2008-06-16T09:00:00+00:00

Filed under: Deals, Google (GOOG), Yahoo! (YHOO), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Market matters, CBS Corp 'B' (CBS), Clear Channel Commun (CCU), Stocks to Buy, Cramer on BloggingStocks

Too many parties have too much to lose to let this one go through without a fight, TheStreet.com's Jim Cramer says.

No, it is not over. If there is one thing we have learned about Sirius (NASDAQ: SIRI) (Cramer's Take)-XM (NASDAQ: XMSR) (Cramer's Take), it is that at every step of the way, people have to try to block it or at least hold it up to the point that someone goes out of business. This is a deal, now much longer in passing than Exxon and Mobil, that still has congressional meddling even right now, still has rearguard activists who might fight the merger on the commission itself even though the FCC's staff has said yes.

Lots of people are confusing the issue of the merger benefits with the merger itself. The benefits will be helpful down the road on both the revenue and the costs, and the caps won't mean that much. What matters, plain and simple, is refinancing. Both companies are always in danger of running out of money.

However, if you know that three years hence -- after the frozen period during which service fees cannot be increased -- the two companies can begin to offer extreme cable pricing, you can go hat in hand to the Street with a good bond deal that people will no longer feel could default.

That's why the stocks combined are good. They may turn out not to be good for all of the people playing the various games, because there is no quick way to monetize the two companies. But you will most certainly create a dominant company that will pretty much destroy terrestrial radio, which may be the biggest reason radio stocks continue to trade down and CBS (NYSE: CBS) (Cramer's Take) continues to be brought down by CBS Radio.

There's been so much that I have hated about this government's stalling of this as opposed to the serious antitrust issues that have developed in the last 20 years of laissez-faire antitrust. Everything stinks out loud, including the stalling of the deal until after Clear Channel (NYSE: CCU) (Cramer's Take), the principal target of the merger, went through. The people propounding Clear Channel, just like the people propounding newspapers, do not and have not worked in the industry. They just know cash flows and vectors, not the reality of the endless newspaper-like decline to this medium.

In short, putting XM together with Sirius would be like creating a new Google (NASDAQ: GOOG) (Cramer's Take) with Yahoo! (NASDAQ: YHOO) (Cramer's Take) when it comes to terrestrial radio.

And there's a simple reason: commercials. Everyone hates them.

And you are done with them the moment this deal gets approved, even though it is not a foregone conclusion.

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RELATED LINKS:
Cramer: Sirius, XM Need a Fast Wedding
AIG's Sullivan Is Latest Credit Casualty
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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Electric bills heading way up, get retirement savings from Uncle Sam & Starbucks' last shot - Today in Money 6/16

Allan Halprin — 2008-06-16T08:59:00+00:00

Filed under: Starbucks (SBUX), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Money and Finance Today, Amer Intl Group (AIG), Lehman Br Holdings (LEH)

In the News:

· Lehman Brothers Reports $2.8 Billion Loss; First Quarterly Loss Ever

· AIG CEO Martin Sullivan Steps Down; Latest Victim of Credit Crisis

· XM, Sirius Win Support of FCC

· CEO Pay Continues Higher Even As Companies & Economy Struggles

· Midwest Floods Could Reduce Corn Supply, Raise Prices Even More

· Iconic Stoli Vodka Might Get Sold

· Seth Tobias Estate Case Reaches Settlement

Electricity Bills Heading Up. Way Up
Utilities across the USA are raising power prices up to 29%, mostly to pay for soaring fuel costs, but also to build new plants and refurbish an aging power grid. Even more dramatic rate increases are ahead. The mounting electric bills will further squeeze households struggling with spiraling gasoline prices.
Price jolt: Electricity bills going up, up, up - USATODAY.com

Get Retirement Savings Money From Uncle Sam
Barack Obama would match up to $500 in savings for families earning under $75,000. It would cost the government but help people save. Is it a good idea?
Get retirement savings $$ from Uncle Sam - CNNmoney

Battling Back From Devastating Debt
Up to your eyeballs in debt? You're not alone. Americans are in hock. See how bad it is and what you can do about it.
Americans falling deeper in debt
Also: 10 Bad Habits That Lead to Debt Disaster

Auto Industry's Worst Blunders
The auto industry has come up with some brilliant ideas that changed history. It has also made some pretty stupid moves like ignoring fuel efficiency, ignoring quality and stupid alliances.
Auto Industry Blunders: BusinessWeek

Starbucks' Last Shot
Starbucks' chief caffeinista faces penny-pinching customers, a plunging stock price, and competition from Dunkin' Donuts and McDonald's. Can Howard Schultz keep his company from getting creamed?
Starbucks CEO Howard Schultz Profile - Portfolio.com

Cut Your Grocery Bill in Half
Everyone's hurting thanks to high food prices - here's how to slash what you spend on groceries.
Web savvy ways to slash your grocery bill - CNNmoney
Also: How to Use Web to Save on Groceries, Dining Out and more

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Sirius (SIRI) deal with XM Satellite (XMSR) may finally be approved

Douglas McIntyre — 2008-06-16T08:39:00+00:00

Filed under: Deals, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI)

After months of being "almost" approved, it looks like the FCC may give the merger of Sirius (NASDAQ: SIRI) and XM Satellite (NASDAQ: XMSR) its green light. According to The Wall Street Journal, "The staff of the Federal Communications Commission has proposed that the agency approve the merger."

The two companies may have to negotiate with the agency on pricing before a final approval is issued. The FCC may put caps on what the newly formed company can charge consumers for the service and satellite receivers may be part of that process.

The real question is whether the approval will come too late to save the companies. Because they operate on different technology platforms, it could take over a year for the merger to gain real cost savings. Worse, each company has over $1 billion in debt. Neither has ever made an operating profit.

Satellite radio is also up against new competition for HD radio and portable media players and multimedia cell handsets. Many of the satellite radios are sold in new cars, but auto sales are down sharply.

Getting an "OK" may be better than the months of waiting had been, but the firms may already be in too much trouble for it to matter. .

Douglas A. McIntyre is an editor at 247wallst.com.

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Before the bell: AAPL, F, GE, SIRI, XMSR, JPM

Melly Alazraki — 2008-06-16T08:26:00+00:00

Filed under: Before the bell, Major movement, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), General Electric (GE), Ford Motor (F), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), JPMorgan Chase (JPM)

Before the bell: Futures higher with Lehman, AIG in focus

Futures reversed course and are now lower as investors still await Lehman's results.

Deutsche Telekom AG (NYSE: DT)'s T-Mobile will sell Apple Inc (NASDAQ: AAPL)'s 3G iPhone for as little as 1 euro ($1.54) for the 8-gigabyte version together with a 69 euro monthly contract, it said on Monday. Under the new agreements where carriers don't have to share call revenue with Apple, iPhones sales might increase as carriers would subsidise them. It's interesting to note that some carriers have said iPhone users consume 30 times as much data as users of other Internet-enabled phones.

The New York Times reported that Kirk Kerkorian will meet with top executives of Ford Motor Co. (NYSE: F) next week to show support for management and the automaker's turnaround plan. This is after, of course, Kerkorian's Tracinda Corp completed a tender offer on Friday to acquire 20 million shares of Ford for $170 million.

Shares of General Electric (NYSE: GE), already under pressure lately, are down 1.3% in premarket trading after J.P. Morgan Securities downgraded the industrial conglomerate to Neutral from Overweight and cut its 2009 earnings forecast from $2.40 to $2.30 saying GE has more earnings risk and lack of visibility.

With Bear Stearns now part of J.P. Morgan Chase (NYSE: JPM), concerns arose that possible indictment against two former Bear managers could affect JPMorgan. But it seems JPMorgan would not be part of broader charges while criminal charges of fraud could be the managers of two bond portfolios.

Meanwhile Sirius Satellite Radio Inc. (NASDAQ: SIRI) and XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) shares are climbing 10% each after new outlets reported the FCC may approve the deal where Sirius would buyout its larger rival, XM.

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