Ticker Shock: Three Reasons Why Sun Might Still Shine for IBM
Tuesday's top stories and stocks with potential to move.
"Put on a coat, or you'll catch a cold."
I can still hear my mother saying those words, and I thought she was crazy. Now I'm not so sure. My wife sent me outside last night at 10:30 p.m. to put out the garbage. It was cold and raining, and I haven't felt well since. In retrospect, I should have heeded Mom's advice. All I can say is, I better be well by the long weekend coming up.
Asian stocks were down overnight, but only a bit. The Hang Seng and the Nikkei were both off less than 1%. Meanwhile, European stocks were in negative territory earlier this morning as well. And here in the US, we're currently trading lower.
Here's what I'm seeing this morning:
Sun Microsystems (JAVA):
Just some more quick thoughts on the IBM (IBM)/ Sun saga.
1. In a sense, isn't it good news that Sun reportedly nixed the idea of being bought out in the $9s? Doesn't that suggest they value themselves, and they think they're worth more?
2. What might become of Jonathan Schwartz, its chief executive? My gut tells me that unless the 2 parties start talking some serious turkey, and soon, he could be out on his hindquarters. Maybe the upshot of that would be that he'd have plenty of time to hit the links with Jerry Yang of Yahoo (YHOO) fame. Better start getting some cardboard boxes together to pack your stuff just in case, Mr. Schwartz.
3. In spite of my mocking, I still believe IBM and Sun can ultimately come together - though I'm not putting my money where my mouth is.
MGM Mirage (MGM):
Last month, the company sold off its Treasure Island facility, and there's chatter that the company could try to sell off more casinos as a means of raising some flash. The talk is that Beau Rivage in Mississippi could be one of them.
I think this could be a very good idea in that it might help it overcome this rough patch, and perhaps help it through the ongoing CityCenter debacle.
But what type of leverage might the company have in a property sale? While it's undoubtedly got some amazing assets under its wing, I'd think any potential buyer would have them over a barrel.
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