Ticker Shock: Jabil Circuit Gets Up, Research In Motion Falls Down
Friday's top stories and stocks with potential to move.
Our lawmakers never seem to have a problem agreeing on a $200 toilet seat, or that $100 hammer I'm always hearing about. But ask them for money or to come up with a plan to save civilization as we know it and it's like asking them to split the atom.
As you all know by now -- or will likely soon find out -- the bailout plan that looked like a done deal at the close yesterday hit a wee snag: Politics -- along with the issue of CEO compensation -- both played a role. Whatever the case, they need to do something and fast.
As I sit here with a very bad feeling, the Dow futures are off triple digits, and Asia and Europe are flashing red.
Washington Mutual (WM)
Late last night, JPMorgan (JPM) acquired $1.9 billion in WaMu's assets after the bank was closed by regulators. Now I can't say that this situation comes as too much of a surprise, as it was fairly obvious WaMu was struggling to find a lifeline, but it's tremendously sad to see nonetheless. This is a company that got its start in 1889 and really was the talk of the town not too long ago.
The only "good" thing I can see is that the acquisition will add $0.50 per share to JPMorgan's 2009 earnings after "pretax merger costs of approximately $1.5 billion" and "pretax savings of approximately $1.5 billion by 2010."
But again, very sad day here.
Research In Motion (RIMM)
After the bell last night, RIM released its second-quarter numbers. The Canadian company reported an $0.86 per share profit, which, while a huge improvement over the $0.50 per share it turned in last year, was a penny shy of what the Street had been expecting.
Not the end of the world - though it has offered up third-quarter guidance of $0.89 to $0.97. And that's an issue, because the Street had been looking for $0.98. The fact that this news is coming against the backdrop of the stalled bailout plan likely doesn't help the situation.
The shares look to open sharply lower. With all that in mind, this is one of those stocks that I plan to keep an eye on, because I do think the company has a bright future.
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