Spotlight Stocks: Freddie Mac, Marvel, Starbucks, Yahoo
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, August 5, 2008:
- Freddie Mac (FRE) chief executive, Richard F. Syron, reportedly dismissed internal warnings which could have saved the company from some of the financial hardships it is now facing, said The New York Times citing more than two dozen current and former high-ranking executives and others. The company's chief risk officer sent a memo in 2004 speaking of risky loans threatening the company's health.
- Marvel Entertainment (MVL) reported 2Q net income of $46.7 million, or 59 cents a share, up from $29.1 million, or 34 cents a share a year ago on strength from foreign presales of its Iron Man and The Incredible Hulk titles. Revenue came in at $156.9 million versus the prior number of $101.5 million. The company issued EPS guidance for fiscal year 2008 of $1.55-$1.75 a share on revenue of $450-$480 million. These estimates are below consensus projections of $1.96 a share on revs of $543.12 million.
- Societe Generale reported 2Q net profit of 644 million euros ($1 billion), down 63% from 1.74 billion euros a year ago. Shares rose on the news as the figures beat analyst estimates of 518 million euros. The drop was attributed to losses at its corporate and investment banking unit.
- Starbucks (SBUX) will now offer repeat customers a special deal on iced drinks. Those who purchase a drink in the morning and can produce a receipt, will now be offered any iced grande beverage for $2 after 2 pm, a usual expense of about $4. The campaign, now nationwide, was previously only available in Seattle, Chicago and Miami.
- Yahoo (YHOO) shareholder Capital Research Global Investors said it will request an investigation into last week's shareholder vote which moved to keep CEO Jerry Yang in place. Yang received 85.4 percent support in the results announced on Friday, with the remaining votes withheld in protest.
- Asian trading closed mostly lower with the Hang Seng -2.51%, Nikkei -0.14%, Sensex +2.63%, Taiwan -2.35% and Shanghai -1.86%..
- A quick check across the pond finds the CAC +1.61%, DAX +2.54%, FTSE +1.98%, ATX -0.20%, Swiss Market +1.22% and Stockholm +1.99%.
- In commodities, crude oil is trading lower -1.85 to 119.54 and gold is also dropping -15.3 to 884.8 this morning.
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