Monday, 30 April 2012

US Government Views Slow Economic Recovery Differently

Although, the US economy recovered sluggishly at a 2.2 percent annual rate from January through March, the government said Friday that this was the result of continuing challenge of spurring strong growth and that the economy grew at a 3.5 percent annual rate if only the private-sector components of the GDP are taken into consideration.

The first-quarter results were disappointing as they reflected the March jobs report, which fell short as only 120,000 jobs were added after a chain of many months of strong employment gains.

Some component parts of the report offered a ray of hope however, the gross domestic product represented by the sum of goods and services produced in the year fell short of expectations. The saving grace was provided by strong consumption in the private sector although continuing decline in government spending dampened overall growth.

The spending by the federal government declined 5.6 percent including a drop of 8.1 percent in military spending. State and local governments spent 1.2 percent less than in the earlier period. The private sector component of the GDP grew at a 3.5 percent annual rate. The monthly employment figures were impacted by the continuing drop in state and local government jobs, raising questions about the future course of the federal budget policies. However, the economy continues to grow, but slowly.

Friday, 27 April 2012

Deutsche Bank Securities Reiterates HOLD Rating on TD AMERITRADE Holding Corporation (NASDAQ: AMTD

Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of TD AMERITRADE Holding Corporation (NASDAQ: AMTD). The 12-month target price is set to $20.

In a research note published yesterday, the analysts mention that some macro/market headwinds such as mixed retail activity and low rates continue to weigh on the industry. The management of  TD AMERITRADE Holding Corporation expects to manage these headwinds by being focused on expenses, capital, organic growth/NIM and  remain up-beat on the outlook for organic growth and longer term upside as margins and rates normalize.

Thursday, 26 April 2012

Gannett’s ( GCI) Profit and Revenue Drop in Last Quarter

Gannett’s profit and revenue in the last quarter dropped. Although, there was strong TV advertising, the slump in the print division could not be offset by it.

Profit and revenue of broadcaster and publisher, Gannett (NYSE : GCI), dropped in the last quarter even though there was stronger TV advertising, but it could not offset the slump in the print division early in the year. Net income dropped to $68 million, a drop of 24 percent from $90 million. However, the drop was in part due to restructuring costs of $20 million.

The company said Monday that broadcasting revenue rose 7.5 percent to $176 million on strong advertising demand, citing higher auto spending, advertising related to Super Bowl and an increase of $3.8 million in political ad demand. The company owns 23 percent covering 18.2 percent of the US market.

There was an increase of 17 percent in retransmission revenue to $22.8 million and a growth of 6.4 percent in television station digital revenues. The company earned operating income of $72.6 million in broadcasting, up 14.4 percent. As per current trends for the current second quarter, the company expects the percentage increase in total television revenues to be in high single digits compared to the 2011 period.

Publishing revenue for Garnett fell to $874 million from $929 million reflecting soft advertising demand, which in part is due to the slow pace of the economic recovery. The year started on a weak note in January and although activity improved in February and March, it was not enough to offset the slow start.

Wednesday, 25 April 2012

Novartis (NVS) Q1 Earnings Drop 18 percent

On Tuesday, Novartis AG (NYSE : NVS) announced that due to strong competition in the drugs market and manufacturing problems at a plant in the US, the company has experienced 18 percent drop in Q1 earnings.

Chief Executive, Joe Jimenez, stated that the Swiss pharmaceutical company would slowly resume the production at the Lincoln, Nebraska, after it was closed last year. The plant was closed after inspection reports showed possible contamination of blood pressure drugs,costing the company some $200 million in the quarter.

The company expects full year's profits to come below 2011 profit. In the same period last year, the net profit skidded to $2.33 billion from $2.82 billion, whereas, the sales slashed down 2 percent to $13.74 billion.
Resource Link: Novartis (NVS) Q1 Earnings Drop 18 percent

Tuesday, 24 April 2012

US Stocks Affected by European Economic Tremor News

On Monday morning, the US stocks got adversely affected at Wall Street after the news that European government debt continues to pile up despite severe budget cuts that have led to unrest across the continent.

At 11 am, New York time, the Dow Jones industrial average slashed down 134 points to 12,895. In US, the Standard & Poor's 500 index slashed down 16 points to 1,362 whereas, the Nasdaq composite slashed down 48 points to 2,952.

Major indexes in Europe slashed down very badly. France's CAC-40 index slashed down 2.9 percent, while, Germany's main index skidded even more, 3.6 percent. The European currency, Euro's rate slashed against the dollar.

Resource Link:   US Stocks Affected by European Economic Tremor News

Monday, 23 April 2012

Vodafone Purchases C&W Worldwide spending GBP1.04 Billion

Vodafone Group (NASDAQ:VOD) has agreed to buy Cable & Wireless Worldwide PLC  for GBP1.04 billion. This acquisition would  make Vodafone stand  after BT Group PLC (NYSE:BT) in UK as the second largest mobile and fixed-line operator . It will also augment Vodafone's network across the UK, supporting its business-to-business operations around the world.

Before the arrival of bidding interest news in February, Vodafone's 38 pence-a-share proposal is a 92% premium to C&W Worldwide's share price,and it arrived when India's Tata Communications Ltd (NYSE:TCL) left its own bid efforts last week.

On Monday, Vodafone Group informed about 10.35% of unchangeable undertakings and 8.13%  of nominal support of C&W Worldwide's shareholders who agreed to vote in favor of the offer.

The deal is expected to close by third-quarter of 2012, subbject to European regulatory approval.

The deal has taken C&W Worldwide at leading position of FTSE 250 index leader board at 0915 GMT, trading 16% higher , or 5 pence, at 37 pence and valuing the company at GBP1.02 billion. Shares of Vodafone were 1 pence ahead, or 0.3%, at 172 pence, valuing the operator at GBP85.19 billion. 

Resource Link:  Vodafone Purchases C&W Worldwide spending GBP1.04 Billion

Friday, 20 April 2012

Startup Investments Down 19 Percent In Q1

New York, April 20 ( - Venture capital investments dropped 19 percent in the first quarter, as investors put less money into some of the deals, in order to take caution for the future. Financing for startups declined to $5.8 billion in Q1, against $7.1 billion in the previous year, as per a study carried out by Pricewaterhouse Coopers and the National Venture Capital Association, based on data from Thomson Reuters. 

This quarter, the number of deals completed were 758, down 15 percent when compared to 889 in 2011. Extended warranty services provider SquareTrade Inc received $238 million deal funding in the quarter and captured the first place, while venture investors poured in $139 million as early-stage funding in Sapphire Energy Inc, an algae-based crude oil developer. Fisker Automotive Inc, an electronic vehicle company, was at the third position with $130 million in later-stage funding.

The drop in investments was witnessed at every stage, as 53 seed companies received a funding of $141 million this quarter, as compared to 86 companies and $211 million in 2011, and 290 early-stage startups got $1.61 billion, against $1.81 billion and 320 companies. 

Venture capitalists poured in $1.71 billion in 207 expansion-stage companies in Q1, which is again less than $2.26 billion for 221 companies the previous year. Whereas for the later startups, $2.41 billion was invested in 208 compaines, compared to $2.41 billion that was put in 234 companies a year earl

Resource Link:-  Startup Investments Down 19 Percent In Q1

S&P Capital IQ Downgrades DuPont from BUY to HOLD

Analyst Leo Larkin of S&P Capital IQ downgrades DuPont (NYSE: DD) from BUY to HOLD. The target price is set to $55.
In a research note published this morning, the analyst mentions that the downgrade in rating is based on valuation. The analyst believes that DuPont’s stock is no longer undervalued following the recent rise in the share price. The analyst, however, believes that the company’s EPS would grow in the long term due to a secular increase in demand for chemicals and agricultural products. The company is expected to generate sufficient free cash to pursue acquisitions and maintain the current dividend, the analyst says. The upside to DuPont’s current target price is modest, the analyst adds.