Sovereign Wealth,Cramer on Eliot, Southwest (LUV), Culture
– This is a great oped. Why are we so afraid of these funds when we already have them?
– Watch this, does it make me terrible that I just started laughing……hysterically?
– In case you were not nervous enough to fly..
– This makes sense. With the deterioration of the family, culture takes on more prevalence.
Nothing to do with investing… but am I the only one who is sick of seeing these two? Every segment they are in dissolves into this stuff..
Here is an interview with Buffett in which he talks about the current situation.
Disclosure (“none” means no position):None
Here is a Bloomberg interview with Fairholme’s Bruce Berkowitz in which he talks about Sears Holdings
Disclosure (“none” means no position):Long SHLD
As gas approaches $4 a gallon, are consumer going to switch to two wheels to save money? It would seem early results are ..yes.
The questions was posed to an Illinois Harley Dealer recently.
Shad Zimbro, co-owner of Black Diamond Harley Davidson in Marion, Illinois says,”It really is the truth because they do save a lot of money in gas by going to a motorcycle.” He says his sales have doubled since last year.
Motorcycles tend to average about 50 miles a gallon and Harley makes models that get 70. Zimbro says he commutes 40 miles a day to work on his Harley and saves about $100 a week by doing so.
It does make perfect sense but obviously we need more data to see if it is just a regional trend or a larger on. The significance of his increase though, is impressive and that does lead me to believe it may be more than a local event.
In January Harley did issue 2008 guidance above the consensus estimates so perhaps they are seeing something?
We’ll have to wait until late spring to get more info but I am thinking that this may actually be something larger..
Disclosure (“none” means no position):Long HOG
Upgrades
UnionBanCal (UB)- Punk, Ziegel & Co Mkt Perform » Buy
JA Solar (JASO)- Needham & Co Buy » Strong Buy
Unisource Energy (UNS)- Soleil Hold » Buy
Leap Wireless (LEAP)- Wachovia Underperform » Mkt Perform
Millennium Pharm (MLNM)- Piper Jaffray Neutral » Buy
Humana (HUM)- UBS Sell » Neutral
JA Solar (JASO)- Lehman Brothers Equal-weight » Overweight
NIDEC (NJ)- JP Morgan Neutral » Overweight
GSI Commerce (GSIC)- Jefferies & Co Hold » Buy
Wimm-Bill-Dann Foods (WBD)- Credit Suisse Neutral » Outperform
Monsanto (MON)- Banc of America Sec Neutral » Buy
AstraZeneca (AZN)- UBS Sell » Neutral
Downgrades
Hot Topic (HOTT)- BB&T Capital Mkts Buy » Hold
Raven Industries (RAVN)- Dougherty & Company Buy » Neutral
Sigma Designs (SIGM)- BWS Financial Strong Buy » Hold
Orbcomm (ORBC)- Oppenheimer Outperform » Perform
Glu Mobile (GLUU)- Deutsche Securities Hold » Sell
PNC Bank (PNC)- Keefe Bruyette Outperform » Mkt Perform
Fed Investors (FII)- UBS Buy » Neutral
Friday’s Picks
Joe Terranova recommends Calpine Corp. (CPN) $17.54
Guy Adami prefers Home Depot (HD) $26.48
Karen Finerman likes Goldman Sachs (GS) $165.44
Pete Najarian thinks Genentech (DNA) $81.43 is a buy.
Thursday’s Results
Tim Seymour recommends Chunghwa Telecom Co (CHT) $24.47 Close $24.51 GAIN
Guy Adami prefers Crocs (CROX) $20.59 Close $20.88 GAIN
Karen Finerman likes Microsoft (MSFT) $28.63 Close $28.62 LOSS
Pete Najarian thinks Dupont (DD) $46.58 is a buy. Close $47.31 GAIN
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 4-1
Jeff Macke= 17-13
Tim Seymore= 9-6
Guy Adami= 18-18
Pete Najarian= 17-15
Karen Finerman= 16-19-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
Disclosure (“none” means no position):
You have to go over to Adam’s Options and check this out. Honestly, you cannot make it up!
Lampert is still buying AutoNation (AN) shares.
Lampert and his affiliates have upped their stake to over 66.25 million shares adding in excess of 250,000 shares on March 11th.
He now controls over 36.8% of the outstanding shares
Disclosure (“none” means no position):None
In a press release, Starbucks (SBUX) announced it will disclose “transformational initiatives” at it annual meeting next Wednesday. Here is my two cents.
My first though when I read this was: Is it necessary? Hadn’t they done just fine up until this point? Didn’t they get themselves in to trouble in all actuality when they tried to “transform” away from what they did best?
What should they announce then? Here are some directional ideas.
1- If you are going to claim to be “upscale” or “premium”, then you have to act like it. The only thing upscale about the Starbucks experience in many locations is the price. Get rid of all the junk for sale that makes me feel claustrophobic when I try to maneuver myself to the counter. Expand locations to give us more seating. If I have to wait to get my drink made, please ask me to go sit down and then bring it to me. Also, I should not have to clean off the table when I sit down at it.
These are not real big things, they are basics and McDonalds (MCD) currently does them. Yet location after location ignores these. You are not doing me a favor letting me drink coffee there.
2- Shrink the menu. Do fewer things very well rather than a bunch just ok. There is a big variation in the same drink from location to location. That may have changed after the recent “training” but with new baristas being hired everyday, the unwieldy menu can only lead to mistakes and more unhappy customers.
3- Organic: Everything sold at the stores should be organic. The population is drifting that way in its food choices and Starbucks ought to be a leader here. This also goes with the “acting upscale” theme.
4- Be Nice: If I order a “large” do not correct me and say “it is called a vente”. Just smile and give me a large.
5- Kids. Your stores could not be more kid unfriendly if you tried. Everything for sale is waist height which means any kid under 6 will look at it, touch it and possible break or try to eat it. I am not saying put a jungle gym in, what I am saying is that less people will avoid the locations who have children if they do not fear what they will get into taking the kids in.
6- Price: You are at the top.
None of these are a magic bullet but when taken together and enacted, they will begin to change some of the negative sentiment that has built up out there towards the chain. Many of these things were all done years ago but Starbucks drifted away from them in an effort to maximize dollar per square foot. In all reality, by drifting from their core, they alienated many people.
Disclosure (“none” means no position):Long MCD. none
Spitzer, RIMM, Cramer, Suing a Blogger
– Watch this video, Langone all but does the jig over Spitzer’s “indiscretion”
– RIMM beats Apple to “over air” music downloads
– Don Harold more Cramer blatant errors….
– My guess is they are going after Cisco’s pocketbook
Upgrades
Diamond Foods (DMND)- Piper Jaffray Neutral » Buy
Vertex Pharm (VRTX)- Lazard Capital Sell » Hold
Qualcomm (QCOM)- Am Tech/JSA Research (old) Neutral » Buy
Third Wave (TWTI)- First Analysis Sec Equal-Weight » Overweight
Airmedia (AMCN)- Susquehanna Financial Neutral » Positive
Ruddick Corp (RDK)- JP Morgan Neutral » Overweight
Cal Dive Intl (DVR)- JP Morgan Neutral » Overweight
NBTY Inc (NTY)- RBC Capital Mkts Sector Perform » Outperform
Thornburg Mortg (TMA)- Bear Stearns Underperform » Peer Perform
DaVita (DVA )- Piper Jaffray Neutral » Buy
Cash America (CSH)- JMP Securities Mkt Perform » Mkt Outperform
Pearson Plc (PSO)- Lehman Brothers Underweight » Equal-weight
Nokia (NOK)- Oppenheimer Perform » Outperform
Downgrades
Spartech Corp (SEH)- First Analysis Sec Overweight » Equal-Weight
Tesoro (TSO)- Caris & Company Above Average » Below Average
Sunoco (SUN)- Caris & Company Above Average » Below Average
Holly (HOC)- Caris & Company Above Average » Below Average
Frontier Oil (FTO)- Caris & Company Above Average » Below Average
Valero Energy (VLO)- Caris & Company Above Average » Average
Western Refining (WNR)- Caris & Company Average » Below Average
DivX (DIVX)- Barrington Research Outperform » Mkt Perform
Delta Air Lines (DAL)- JP Morgan Overweight » Neutral
Continental Air (CAL)- JP Morgan Overweight » Neutral
AMR Corp (AMR)- JP Morgan Overweight » Underweight
Alaska Air (ALK)- JP Morgan Overweight » Underweight
US Airways (LCC)- JP Morgan Overweight » Underweight
UAL Corp. (UAUA)- JP Morgan Overweight » Underweight
Northwest Airlines (NWA)- JP Morgan Overweight » Underweight
Pinnacle (PNK)- Morgan Joseph Buy » Hold
Boyd Gaming (BYD)- Morgan Joseph Buy » Hold
Lowe’s (LOW)- Morgan Keegan Mkt Perform » Underperform
Genomic Health (GHDX)- JP Morgan Overweight » Neutral
Kroger (KR)- JP Morgan Neutral » Underweight
Level 3 (LVLT)- Jefferies & Co Buy » Hold
Park-Ohio (PKOH)- Morgan Joseph Buy » Hold
Whitney Holding (WTNY)- JP Morgan Neutral » Underweight
KLA-Tencor (KLAC)- Oppenheimer Perform » Underperform
Permian Basin Royalty Tr. (PBT)- Citigroup Buy » Hold
Werner Enterprises (WERN)- Bear Stearns Peer Perform » Underperform
Credit Suisse (CS)- Keefe Bruyette Outperform » Mkt Perform
UBS AG (UBS)- Keefe Bruyette Mkt Perform » Underperform
Network Appliance (NTAP)- Robert W. Baird Outperform » Neutral
Liberty Media Capital (LCAPA)- Deutsche Securities Buy » Hold
Thursday’s Picks
Tim Seymour recommends Chunghwa Telecom Co (CHT) $24.47
Guy Adami prefers Crocs (CROX) $20.59
Karen Finerman likes Microsoft (MSFT) $28.63
Pete Najarian thinks Dupont (DD) $46.58 is a buy.
Wednesday’s Results
Tim Seymour recommends Taiwan Semiconductor (TSM) $10.52 Close $10.28 LOSS
Guy Adami, Karen Finerman and Pete Najarian all say Goldman Sachs (GS) $163.07 Close $163.01 LOSS
2008 Records:
Brian Schaeffer= 0-1
Carter Worth= 0-1
Jon Najarian= 4-1
Jeff Macke= 17-13
Tim Seymore= 8-6
Guy Adami= 17-18
Pete Najarian= 16-15
Karen Finerman= 16-18-1
2007 Results (Since 6/21):
Guy Adami= 58-46 = 56%
Jeff Macke= 60-40 = 60%
Pete Najarian= 49-41 = 54%
In a just released SEC filing, Icahn, who owns 6.4% of the stock, notified Motorola (MOT) management the gloves are now off. He is now urging his own Board nominations to shareholders.
From the filing:
“The election of the Nominees requires the affirmative vote of a plurality
of the votes cast, assuming a quorum is present or otherwise represented at the
Annual Meeting. As a result, your vote is extremely important. We urge you to
mark, sign, date and return the enclosed GOLD proxy card to vote FOR the
election of the Nominees.
WE URGE YOU NOT TO SIGN ANY PROXY CARD SENT TO YOU BY MOTOROLA. IF YOU HAVE
ALREADY DONE SO, YOU MAY REVOKE YOUR PROXY BY DELIVERING A LATER-DATED GOLD
PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE, OR BY VOTING IN PERSON AT THE
ANNUAL MEETING. SEE “VOTING PROCEDURES” AND “PROXY PROCEDURES” BELOW.
If you have any questions or require any assistance in executing your proxy, please call:
Innisfree M&A Incorporated
Stockholders call toll-free: (877) 825-8772
Banks and Brokers call collect: (212) 750-5833″
Rather, says Icahn, “VOTE FOR THE NOMINEES BY USING THE ENCLOSED GOLD PROXY TO VOTE TODAY–BY TELEPHONE, BY INTERNET, OR BY SIGNING, DATING AND RETURNING THE GOLD PROXY CARD IN THE POSTAGE-PAID ENVELOPE PROVIDED TO YOU.”
Who are they?
“On January 31, 2008, Icahn Partners, Icahn Master and High River delivered
a letter to Motorola, notifying Motorola that these Icahn Parties nominate and
will seek to elect at the Annual Meeting – Frank Biondi, Jr., William R.
Hambrecht, Lionel C. Kimerling and Keith Meister as members of the board of
directors of Motorola.”
Icahn’s Proposals:
“PROPOSAL 2 – RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
At the Annual Meeting, the Stockholders will be asked to vote to ratify the
selection of KPMG LLP as Motorola’s independent registered public accounting
firm. Motorola’s Board of Directors recommended a vote for this proposal. The
Participants intend to vote, and recommend that you vote, for this proposal.
VOTING ON PROPOSAL 2
The accompanying GOLD proxy card will be voted in accordance with your
instruction on such card. You may vote for or vote against, or abstain from
voting on Proposal 2 described above by marking the proper box on the GOLD proxy
card.
PROPOSAL 3 – SHAREHOLDER PROPOSAL RE: SAY-ON-PAY
At the Annual Meeting, the Stockholders will be asked to vote on a
shareholder proposal to ask Motorola’s Board of Directors to adopt a policy that
shareholders be given the opportunity to vote on an advisory management
resolution at each annual meeting to ratify the compensation of the named
executive officers of Motorola set forth in Motorola’s proxy statement’s Summary
Compensation Table (the “STC”) and the accompanying disclosure of material
factors provided to understand the STC. Motorola’s Board of Directors
recommended a vote against this proposal. The Participants intend to vote, and
recommend that you vote, for this proposal.
VOTING ON PROPOSAL 3
The accompanying GOLD proxy card will be voted in accordance with your
instruction on such card. You may vote for or vote against, or abstain from
voting on Proposal 3 described above by marking the proper box on the GOLD proxy
card.
PROPOSAL 4 – SHAREHOLDER PROPOSAL RE: RECOUP UNEARNED MANAGEMENT BONUSES
At the Annual Meeting, the Stockholders will be asked to vote on a
shareholder proposal to request Motorola’s Board of Directors to adopt a bylaw
(or, if such a bylaw were absolutely impossible, a policy), for Motorola to
recoup all unearned incentive bonuses or other incentive payments to all senior
executives to the extent that their corresponding performance targets were later
reasonably determined to have not been achieved or resulted from error(s).
Motorola’s Board of Directors recommended a vote against this proposal. The
Participants intend to vote, and recommend that you vote, for this proposal.
VOTING ON PROPOSAL 4
The accompanying GOLD proxy card will be voted in accordance with your
instruction on such card. You may vote for or vote against, or abstain from
voting on Proposal 4 described above by marking the proper box on the GOLD proxy
card.
PROPOSAL 5 – SHAREHOLDER PROPOSAL RE: A GLOBAL SET OF CORPORATE STANDARDS AT
MOTOROLA
At the Annual Meeting, the Stockholders will be asked to vote on a
shareholder proposal to request Motorola’s Board of Directors to review and
amend, where applicable, Motorola’s policies related to human rights that guide
its international and U.S. operations. Motorola’s Board of Directors recommended
a vote against this proposal. The Participants intend to abstain from voting on
this proposal and make no recommendation as to this proposal.
VOTING ON PROPOSAL 5
The accompanying GOLD proxy card will be voted in accordance with your
instruction on such card. You may vote for or vote against, or abstain from
voting on Proposal 5 described above by marking the proper box on the GOLD proxy
card. ”
Hard to bet against Icahn and selling some $10 puts may be a nice way to profit from it.
Disclosure (“none” means no position):None