Spotlight Stocks: Entergy, Google, Sasol, Wachovia
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, September 9, 2008:
- Entergy (ETR) got an upgrade from Goldman Sachs to buy from neutral. Goldman noted relative valuation and potential near-term catalysts. Analyst Michael Lapides said shares of Entergy deserve a premium multiple, based on returns, free cash flow, carbon regulation, and comparable independent power producer valuations, reported Thomson Financial. The analyst cut his price target to $117 from $129, but expects a 23% upside from where it trades now.
- Google (GOOG) will be challenged over its Internet dominance as the Justice Department has hired Sanford Litvack, the department's antitrust chief under President Carter, to investigate the company. The Wall Street Journal reports that with Google and Yahoo (YHOO) teaming up, they will have over 80% of the U.S. online ad search business.
- Sasol (SSL), the Johannesburg-based coal mining and chemical making company, reported full-year net profit of 22.42 billion rand ($2.82 billion), up 32% from 17.03 billion rand a year ago. The company cited higher crude-oil prices for the lift. Revenue rose 32% to 129.94 billion rand.
- Wachovia Bank (WB) said it expects to cut its 2009 expenses by $1.5 billion. as severance and other costs could climb to $650 million in the bottom half of the year. Additionally, the stock was cut to underperform from neutral by Merrill Lynch, which cited a weaker outlook for credit losses, weaker brokerage and investment banking revenue and possible impairment charges.
- Asian trading closed with the Hang Seng -1.46%, Nikkei -1.77%, Sensex -0.30%, Taiwan -3.51% and Shanghai +0.11%.
- Glancing towards Europe, we see the CAC +0.68%, DAX +0.63%, FTSE +0.97%, ATX -0.04%, Swiss Market +1.34% and Stockholm +0.48%.
- In commodities, crude oil is trading down -1.19 to 105.15 while gold is higher +4.9 to 803.4 this morning.
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