Ticker Shock: Campbell Serves Up Warm Results, L-3 Announces Buyback
Monday's top stories and stocks with potential to move.
Let's get down to business.
Asia's showing me some red this morning. The Hang Seng Index was off more than 1%. Europe, however, is in the green. And here in the States we're off to a higher open.
It appears the government is getting into the mix, guaranteeing over $300 billion of the bank's riskiet assets and injecting $20 billion in new capital. So, do I plan on buying the shares on this news? Hold the emails Citi bulls, but no. There are still a lot of balls up in the air right now. That being said, I do think the shares could pop on this news. If I'm right, I'm hoping other financials will go along for the ride.
I just wonder how long the novelty will last.
Prior to the open, Xerox disseminated a press release indicating that it will outline its expectations for 2009 at an investor conference. According to that release:
2009 earnings per share are expected to range between $1.00 and $1.25 and free cash flow per share of $1.60 to $1.85. Given the strength of Xerox's cash flow and its credit facility of $2 billion, the company has no requirement to access the capital markets in the foreseeable future.
Given that the stock closed at $5.25 on Friday and that analysts appear to be at $1.16 a share, I view this as a pretty big positive. If the company makes those numbers, the shares could pop back in a big way. I also think the stock will close in positive territory today on this news.
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