Tuesday, June 21, 2005

Quote of the Day

"Never shrink from doing anything which your business calls you to do. The man who is above his business may one day find his business above him." - John Drew

Morning News of Note:

  • NUE IPS: Nucor Says Profit To Hit Lower End Of Forecast Range Nucor Corp. said its second-quarter results would come in at the lower end of its earnings forecast, in a sign that steel minimill companies are starting to feel the same softening market conditions as are larger, integrated steelmakers. Another minimill operator, Ipsco Inc. of Lisle, Ill., lowered its second-quarter earnings forecast, too, and, like Nucor, cited factors including weak demand and declining scrap prices. Declining prices for scrap, which minimill operators use as a primary raw material to make steel, limits the premium steelmakers can pass on to customers. (Full Story) WSJ
  • Cable Co's Going Private: Cable Systems' New Weapon In Phone Battle: Going Private As they beef up for battle against telephone giants, a growing number of cable-TV systems are deciding that one way to get stronger is to buy out their public stockholders and go private. The move by the Dolan family to privatize Cablevision Systems Corp., announced yesterday, partly reflects its recognition that the company needs to be much more nimble as it jostles with Verizon Communications Inc., the phone company that's preparing to launch television service in Cablevision's backyard, according to a person familiar with the proposed $7.9 billion transaction. (Full Story) WSJ
  • MSFT: Microsoft believes it can sell 10 mln Xbox 360 consoles in first 12-16 months - BBC (25.11 )
  • PG: Procter & Gamble comments on Gillette acquisition - SEC Filing (54.25 -0.17) The dilutive impact of the Gillette (G) acquisition is expected to reduce P&G earnings by $0.25-0.35 per share in the first year following closing, and $0.05-0.10 per share in the second year following closing. In the third year following closing, the acquisition is expected to add $0.01-0.05 per share.
  • TGT: Target expects June comps to be 'somewhat above planned range' of a 4-6% increase (54.90 +0.48)


Market Comments: The market opens down slightly this morning, as the prospect of oil prices hitting $60 dominates the headline. High oil prices are seen as a tax on the economy, and thus many strategists are predicting that if oil prices stay high, it will result in slower GDP growth going forward. Also, it could result in higher inflation readings than we have seen of late.

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