Ticker Shock: Qualcomm Snags Some AMD; TD Ameritrade Hits Snag
Tuesday's top stories and stocks with potential to move.
The weekend went too darn fast again. It always does. I know I've said it in the past, but I'm going to make a great retiree one day!
Asian markets traded lower as we slept. The Hang Seng and the Nikkei were both off more than 2%. Meanwhile Europe was slightly lower earlier this morning. Here in the US we're currently trading (ugh!) lower.
Here is what has my attention this morning:
The New York Times Company (NYT):
The New York Times reportedly indicated that it will receive a quarter billion dollars from Carlos Slim, the Mexican billionaire.
According to a Reuters article: "Under the terms of the deal, Slim will invest through his Banco Inbursa S.A., Institucion de Banca Multiple, Grupo Financiero Inbursa and Immobiliaria Carso."
Two other snippets from the same article that I think are worth reading as well:
"Slim would receive notes due in 2015 with warrants convertible into common shares, the Times said in a statement. The notes carry a 14% interest rate, with 11% paid in cash and 3% in accrued interest."
"The warrants are for 15.9 million Class A shares with a price of about $6.35. Once converted into stock, they would give Slim a 17% stake in the company, in addition to the shares he owns now."
Does Slim's involvement make me more inclined to buy shares of NYT?
In a word, nope. If the reporting is right, it seems that Slim would have a pretty good deal going for himself. A better deal, I think, than I would as a common holder. Now, if NYT wants to pay me 14%, maybe we'll talk. Otherwise, the shares aren't worth the risk. I wouldn't want to be depending on advertising revenues right now.
Advanced Micro Devices (AMD):
According to an AMD release earlier this morning:
"Qualcomm (QCOM) and AMD today announced that Qualcomm has acquired certain graphics and multimedia technology assets, intellectual property and resources that were formerly the basis of AMD's handheld business."
According to that same release:
"Cash consideration from Qualcomm to AMD, as part of the transaction, is $65 million, subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations."
This begs the question: Does AMD, apparently putting some coin in its pocket, make me bullish on the beleaguered chip company?
No. At $2.29 a share or so I think that analysts will be reluctant to promote the stock. I'm also not drawn in by the earnings estimates. Losses are expected in 2009. Finally, if I was given the choice between investing in either Intel (INTC) or AMD at this point, I don't think there'd be a contest - I'd choose Intel for certain.
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