Ticker Shock: Yahoo Has New Suitor; GM Still Courting DC
Wednesday's top stories and stocks with potential to move.
That was a sweet rebound on Tuesday. Let's keep that momentum going.
Asian stocks did well as we slumbered. The Hang Seng was up more than 1%, as was the Nikkei. Early this morning, Europe was showing me some red, however. And here in the US, we're unfortunately off to a lower open.
Here's what's popping up on my radar screen today:
General Motors (GM)
Nancy Pelosi is saying she believes the Bush administration will bailout the automakers, because bankruptcy is "not an option."
Now, this doesn't seem like anything particularly new, insofar as we all kind of figured that Congress would likely support the auto industry in its time of need. But it now seems to me that it's not a question of if, but rather of when and how, the government will get its hands in the mix.
Incidentally, US Senate Majority Leader Harry Reid "said on Tuesday he plans to offer some sort of legislation for ailing U.S. automakers on Monday."
Again, I just think it's a matter of time until the government or rather we the taxpayer start throwing gobs of money at these guys. As a result I think that shares of automakers could continue to run. (In yesterday's session Ford was up about 5.6%; GM was up about 5.7%.
Move over Mr. Ballmer and Mister Softee? Rumors that former AOL exec Jonathan Miller may make a bid for the company is currently circulating.
Folks, I don't know if that would happen, though I do sense that shareholders probably don't mind the attention. At present, however, I don't think Yahoo is exactly dealing from a position of strength.
Incidentally, it was reported elsewhere that Miller is trying to raise funds for another purpose, and not to pursue Yahoo.
Research In Motion (RIMM)
The Canadian wireless-solution company offered up preliminary thid-quarter results. And they weren't so hot, eh? (You knew I was dying to get that in there.)
RIM said it's looking for adjusted EPS of $0.81 to $0.83 per share; back in September, along with its second-quarter results, it said it was looking for $0.89 to $0.97 per share. Analysts were at $0.91.
Long story short, I think the stock gets battered like a piñata on this news. However, I think this is one of those stocks that has longer-term potential. I intend to keep it on my radar screen.
Bed Bath & Beyond (BBBY)
Want to buy some housewares? Please buy some! Please!
I'm guessing that Bed Bath & Beyond could use your business right about now. Last night after the close, the company announced it's looking for $0.31 to $0.35 per share in the third quarter.
While that's better than posting a loss, it's still below the $0.40 per share analysts were expecting. It's also a country mile below the $0.41 to $0.47 per share guidance the company had previously offered.
In short, we aren't talking a couple of bucks between friends here. It lowered the bar a fair amount. I'm punting on this one. I simply see better opportunities out there.
Have a great day!
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