Spotlight Stocks: General Motors, Lehman, Staples, Toll Brothers
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, June 3, 2008:
- General Motors (GM) is expected to reveal its plans to save money and cut production amid the skidding market for large vehicles. Chief Executive Rick Wagoner and Chief Operating Officer Fritz Henderson plan to make several announcements and take questions from reporters and analysts during its annual shareholders meeting, reported Reuters.
- Lehman Brothers (LEH) will reportedly raise an estimated $3-4 billion in new capital in order to shore up its balance sheet. Currently, the company is expected to report its first quarterly loss since going public, reported The Wall Street Journal. In light of the amount of capital being looked into, it suggests the loss for LEH could be more than the expected $300 million.
- Staples (SPLS) upped its offer for the Amsterdam based office supply company Corporate Express (CXP) to €9.15 ($14.22) a share, valuing the company at about €1.67 billion ($2.6 billion). Analyst Fernand de Boer of Petercam Bank said Corporate Express should accept the Staples offer because cash-in-hand is superior to the debatably better long-term potential of the Lyreco merger, which may face regulatory hurdles.
- Toll Brothers (TOL) reported a 2Q loss of $93.7 million, or 59 cents a share, down from a year-ago profit of $36.7 million, or 22 cents per share. Write-downs for the quarter - on the value of land joint ventures - totaled $174.6 million. Revenue fell 30 percent to $818.8 million from $1.17 billion last year. Despite the loss, the company beat analyst expectations.
- Wachovia (WB) CEO G. Kennedy Thompson was forced out of his position by the company's board after facing months of criticism and poor performance, said the WSJ. Shares of Wachovia have fallen more than 50% in the past year, in large part due to the deteriorating mortgage market.
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- Asian trading closed with the Hang Seng -1.83%, Nikkei -1.60%, Sensex -0.63%, Taiwan -1.66% and Shanghai -0.65%.
- Glancing towards Europe, we see the CAC +0.03%, DAX -0.49%, FTSE -0.06%, ATX +0.37%, Swiss Mkt. +0.11% and Stockholm -0.87%.
- Over in commodities, crude oil is lower -0.21 to 127.55 while gold is up +1.3 to 898.3 this morning.
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