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VIDEOTicker Shock: Footlocker Races Past Expectations
Thursday's top stories and stocks with potential to move.
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You know what I was thinking this morning: Where does all the snow go in New York City? It always dissapears super-quick after a storm. Not that I have a problem with it, but it just seems peculiar - where I live in the suburbs, remnants of the white stuff are likely to remain on the ground for the next month.
Asian stocks were a bit of a mixed bag. The Hang Seng closed down just shy of 1%, while the Nikkei closed in the green to the tune of 1.95%. European stocks were showing me some red earlier this morning. And here in the US we're currently trading -- not again -- lower.
Here's what I’m focused on:
General Motors (GM):
Per the Associated Press:
“General Motors Corp.'s auditors have raised "substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan."
This isn't particularly surprising given the company's well publicized troubles. Nevertheless, I suspect it could scare off a bunch of existing -- and what I assume are anxious -- shareholders.
The good news: Maybe this will get the union folks to play nice.
General Dynamics (GD): Many companies out there have recently cut or suspended their dividends. But not General Dynamics. Its board declared a dividend of $0.38, which was actually an increase from the $0.35-a- share dividend it had offered up previously.
Unfortunately, the story doesn’t end there. In a release disseminated early this morning, the company offered guidance of $6 to $6.10 a share for 2009. That’s due south of the $6.70 to $6.75 a share it had offered up previously. Sluggish jet demand is behind the lowered numbers.
I can’t think of a time when I’ve ever jumped for joy after a company lowered its guidance, however -- and I’m taking an optimist's view here -- $6 to $6.10 is nothing to sneeze at given that the shares can currently be picked up for right around $40.
Long-term, I think the company does well because -- and I’m being simplistic here -- it makes stuff that makes our enemies cry for their mama. Stuff like tanks and other things that go boom.
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