Posts Tagged Corporate Purposes
Stock News 12-30-09
Posted by admin in Uncategorized on March 31st, 2010
Visit the front page of Wall Street Greek to see our current coverage of Wall Street, economic reports and global financial markets.
(Tickers: Nasdaq: CGEN, NYSE: MGM, NYSE: DAL, NYSE: AET, NYSE: CBY, NYSE: KFT, NYSE: HSY, NYSE: GJM, OTC: JALSY.PK)
Today’s market-moving stock news includes reports on Compugen, Aetna, GMAC, MGM Mirage, Japan Airlines, Kraft Foods and Cadbury. These “stock news” briefs will be a new regular column for Wall Street Greek. Besides providing the stock news, we hope our expert stock analysis from a seasoned Wall Street analyst will prove helpful in your daily understanding.
Stock News
Compugen
Compugen (Nasdaq: CGEN) raised $19 million in a sale of 4.1 million shares at an average price of $4.91. The offering extended from November 13 through this past Tuesday. Fund are geared toward “general corporate purposes,” which is legalese that allows the company to use the funds in any manner and limits lawsuit concerns. We wonder though if “general corporate purposes” means paying bonuses and failing shareholders these days? The company hopes to develop more collaborative agreements in order to reach cash-flow break-even by 2011. CGEN shares were up 7.6% at hour of publishing, and that likely also has something to do with the buzz the company created on Monday when it declared it had discovered a drug target for multiple epithelial tumors, also known as carcinomas. The stock jumped 26% on that day alone.
MGM Mirage
An analyst at Oppenheimer, David Katz, raised his earnings and price target estimates for MGM Mirage (NYSE: MGM) today. The company provided data for its newest projects in Las Vegas and Macau, which included better margins than Katz anticipated. His price target was boosted to $9 from $8, but MGM already trades at about nine bucks and change. So, this is not a screaming “buy” based on this news, and the stock is down modestly on the day. The analyst rates the stock “Perform,” and reportedly sees this news already priced in the shares.
Aetna
Aetna (NYSE: AET) said it expects to post a charge of up to $65 million in Q4, as it accounts for layoffs and other consolidation. In November, the company said it would cut 2% of its staff, roughly 625 jobs, with a similar number of cuts coming in 2010. Aetna shares were off about 2.4% at hour of publishing.
Japan Airlines (Delta, American)
Japan Airlines (OTC: JALSY.PK) shares are diving today, down 20% on intensifying fears the struggling airline is nearing bankruptcy. JAL is Japan’s largest airline, and was recently being looked at by Delta (NYSE: DAL) and American Airlines, as the two American carriers consider Asian expansion.
Kraft Foods & Cadbury Plc
Kraft Foods (NYSE: KFT) is seeking a hostile takeover of British candy and chocolate maker Cadbury Plc (NYSE: CBY). On Wednesday, the UK Takeover Panel extended a deadline by which Cadbury was to disclose any new information about the bid. Cadbury now has until January 15 to do so, versus the previous January 12 cutoff. This will allow Cadbury to publish its “trading results” (we assume this translates to “earnings” in American English). Kraft still has until February 2 to get the approval of a majority of Cadbury shareholders, and until January 19 to revise its offer. Two other firms have reportedly made informal inquiries, including The Hershey Co. (NYSE: HSY) and Italy’s Ferrero International SA.
GMAC
GMAC (NYSE: GJM) is likely to get another government handout to help it absorb mortgage loses, according to Reuters. The sum of $3.5 billion was reported by the news agency, and that would build upon the $12.5 billion GMAC has already taken. The rumor factored in lowering the cost of GMAC’s debt default risk, and has the shares up 1.0% today. GMAC has had trouble raising capital on the private market, and the government’s stress test indicated it would need about $11.5 billion. Still, the security’s current price does not scream trouble, so the market seems near certain the government has GMAC’s back.
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
How Public Offerings Can Make You a Lot of Money
Posted by admin in Uncategorized on February 18th, 2010
A public offering or an IPO, is in my opinion, one of the best and most profitable investment vehicles in the stock market. In this article I will explain everything you need to know is to score with a public offering.
What happens to a public offer from the outset, has a private company with the SEC for the IPO file. This file is named S-1 document, or better known as the IPO prospectus referred to, is to be said for the private companies, a mandate everything, and for the investor, the IPOProspect is a wealth of knowledge that can tell you one final check if the company will be on hand hazardous or fall like a stone.
What to see in the IPO prospectus is the following:
High Quality Underwriters: The public offering will bring the insurers to manage the business. The task of the issuing bank is managing the IPO, a lot of pick up and like everything else in life, there are the good, the bad and then there are the select few who are the best. In the pastfew years ago I obtained some very good profits, and this benefit was obtained directly correlated with the insurers. For example, I followed Goldman Sachs, Credit Suisse, German Bank, and Morgan Stanley. This small group of underwriters for me, the best in the industry, and it appears that IPO they manage it very well.
Use of proceeds: This is a very pertinent part of the document. The public offer is to disclose what they do withFunds it raises from the IPO.
Now, some companies simply use the proceeds for "general corporate purposes", which are generally in the best case, the investor, and says nothing.
Further explanation I've read in the use of proceeds section that is a need to so something like this: "We will not receive any earnings from the offer. We will pay the existing directors and shareholders."
The best-looking statements that you want to see, such as: "We will use the proceeds for researchsearch and development and to buy other companies for free. "That tells me that the public offering will go public to search on heavy growth.
The last part of the IPO prospectus, which you need to arm themselves with the result. This is pretty self-explanatory, but still needs to be reviewed. The public offer countries current and past year's revenue and are told that, you can easily see if anything is a trend and it could instructive for futureGrowth.
With the above components, you really have the potential to make a killing on IPOs. Is that we are slowly they come out of recession, were filing through IPOs have been nothing but profitable companies with low risk and high potential. I suggest if you ever wanted to get into IPOs, now is the time to examine it is.
Adverse Credit Remortgage Evergreen Credit Union Low Apr Credit
