BloggingStocks

Rush Limbaugh's $400 million contract: Good for Clear Channel?

Aaron Katsman — 2008-07-02T17:22:00+00:00

Filed under: Press releases, Marketing and advertising, Clear Channel Commun (CCU), Media World, Politics

It's no secret that Talk Radio host extraordinaire Rush Limbaugh has revolutionized the alternative media. With his new contract, it appears that Rush is once again on the cutting edge of societal evolution, and has once again laid down the gauntlet that he is light years ahead of his competition. What's so amazing is that in an era when traditional media is having all kinds of problems, whether it's declining newspaper sales, or declining ratings for the nightly news, the man who sits behind the golden EIB microphone is forging ahead as if nothing is happening.

According to a press release, Limbaugh has signed a long-term contract extension:

Advertiser and affiliate demand is at an all-time high for Mr. Limbaugh. President of Premiere Radio Networks Charlie Rahilly stated, "The Rush Limbaugh Show enjoys an unprecedented platform of radio affiliates. Plus, advertisers harness the intensity of listener engagement -- no one's 'word of mouth' about a product or service delivers more impact than Mr. Limbaugh does. The Premiere team is proud to partner with Mr. Limbaugh deep into the next decade."

The Drudge Report is reporting that the contract will pay him in excess of a whopping $400 million!

Earnings now pace him ahead of the annual salaries for network news anchors: Katie Couric, Brian Williams, Charlie Gibson and Diane Sawyer - combined!

How this will effect the stock of Clear Channel (NYSE: CCU) who, along with Premier radio syndicate Limbaugh's show, is anyone's guess. My hunch, though, is that it will do just fine. Clearly, for Clear Channel Rush is a money making machine. His popularity continues to surge, so it seems that while they are spending a whole lot of money, they will more than make it up in revenue that the show produces.

Love him or hate him, and I am in the love him camp, there is no disputing the impact that Rush has ands continues to have on both politics and the media.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 7/2/08.

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Cramer on BloggingStocks: Despite FCC Nod, Merger between Sirius and XM is far from complete

Jim Cramer — 2008-06-16T09:00:00+00:00

Filed under: Deals, Google (GOOG), Yahoo! (YHOO), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Market matters, CBS Corp 'B' (CBS), Clear Channel Commun (CCU), Stocks to Buy, Cramer on BloggingStocks

Too many parties have too much to lose to let this one go through without a fight, TheStreet.com's Jim Cramer says.

No, it is not over. If there is one thing we have learned about Sirius (NASDAQ: SIRI) (Cramer's Take)-XM (NASDAQ: XMSR) (Cramer's Take), it is that at every step of the way, people have to try to block it or at least hold it up to the point that someone goes out of business. This is a deal, now much longer in passing than Exxon and Mobil, that still has congressional meddling even right now, still has rearguard activists who might fight the merger on the commission itself even though the FCC's staff has said yes.

Lots of people are confusing the issue of the merger benefits with the merger itself. The benefits will be helpful down the road on both the revenue and the costs, and the caps won't mean that much. What matters, plain and simple, is refinancing. Both companies are always in danger of running out of money.

However, if you know that three years hence -- after the frozen period during which service fees cannot be increased -- the two companies can begin to offer extreme cable pricing, you can go hat in hand to the Street with a good bond deal that people will no longer feel could default.

That's why the stocks combined are good. They may turn out not to be good for all of the people playing the various games, because there is no quick way to monetize the two companies. But you will most certainly create a dominant company that will pretty much destroy terrestrial radio, which may be the biggest reason radio stocks continue to trade down and CBS (NYSE: CBS) (Cramer's Take) continues to be brought down by CBS Radio.

There's been so much that I have hated about this government's stalling of this as opposed to the serious antitrust issues that have developed in the last 20 years of laissez-faire antitrust. Everything stinks out loud, including the stalling of the deal until after Clear Channel (NYSE: CCU) (Cramer's Take), the principal target of the merger, went through. The people propounding Clear Channel, just like the people propounding newspapers, do not and have not worked in the industry. They just know cash flows and vectors, not the reality of the endless newspaper-like decline to this medium.

In short, putting XM together with Sirius would be like creating a new Google (NASDAQ: GOOG) (Cramer's Take) with Yahoo! (NASDAQ: YHOO) (Cramer's Take) when it comes to terrestrial radio.

And there's a simple reason: commercials. Everyone hates them.

And you are done with them the moment this deal gets approved, even though it is not a foregone conclusion.

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RELATED LINKS:
Cramer: Sirius, XM Need a Fast Wedding
AIG's Sullivan Is Latest Credit Casualty
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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A failure for a huge LBO? Bell Canada (BCE)

Douglas McIntyre — 2008-05-19T09:48:00+00:00

Filed under: Deals, Private equity, Citigroup Inc. (C), Clear Channel Commun (CCU)

It is the last big buyout left from 2007, the leveraged deal to take Bell Canada (NYSE: BCE) private. The transaction is worth almost $52 billion. Like several LBOs before it, banks are negotiating to get a better price, or kill the deal.

According to The New York Times, "The negotiations over the Bell Canada buyout began to fray late Friday." Banks in the deal, including Citigroup (NYSE: C), want higher interest rates and other concessions. The private equity firms trying to close the transaction, which include Providence Equity Partners and Madison Dearborn Partners, may elect to sue the banks to close. The tactic was used in the buyout of Clear Channel (NYSE: CCU). It worked, but the price still ended up lower than the original offer.

Since the banks have no shame in walking away from these deals, in many cases, observers probably hope courts will force closing on the terms that each party signed up for. But that is merely a child's fantasy. BCE trades at just under $39 after hitting $44 last November.

After hard negotiating and a threat of court visits, watch for a deal to get done below $40.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

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Cramer on BloggingStocks: Evidence of a bottom

Jim Cramer — 2008-05-16T08:43:00+00:00

Filed under: Home Depot (HD), Market matters, Federal Natl Mtge (FNM), Clear Channel Commun (CCU), Lowe's Cos (LOW), Toll Brothers (TOL), Housing, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says the homebuilders won't quit, and that's making the early-cycle plays work.

Have we really bottomed? The stubborn lack of decline in the homebuilders, coupled with the better-than-expected retail sales, the strong transports, and the conclusion of a deal like Clear Channel (NYSE: CCU) (Cramer's Take), has created an environment where you are hard-pressed, if you rely on stocks as forecasters, to ignore the possibility of a bottom.

I watch the HGX like a hawk, the homebuilding aggregation, and it simply won't come down. That's despite the awful numbers, the covenant violations (Standard Pacific (NYSE: SPF) (Cramer's Take)) the bad loans, the lack of mortgage money, the insistence of a down payment and an abysmal spring traffic season.

So, why are people buying the group that signaled the downturn? I think it comes down to price. If you force the homebuilders to sell, as Toll (NYSE: TOL) (Cramer's Take) did this quarter, taking no gains on homes, you clean up inventory. If you clean up inventory, which is what happened in western Florida, you stabilize pricing. When you stabilize pricing, you bring out buyers. It is a virtuous circle.

Which brings us back to the government. The feds, being pushed by Sen. Dodd, could provide real help, or provide some damage to the process depending upon the actions in the upcoming weeks.

If we spend $200 billion to $300 billion to allow the FHA to guarantee loans and stretch out the payments, we will allow people to stay in homes. That takes off more inventory, the foreclosure inventory. But if we give the builders a credit, they stop cleaning up their inventory because they can pay the banks with that credit. One will offset the other. (If they just listened to Bob Toll and offered a $15,000 tax credit on a home, then we could deal with unsold inventory, but the Dems are focused on keeping people in their homes who deserve to be in them, not selling new homes.)

So the Senate matters, as does the president who is completely laissez-faire about this issue and could become the enemy quickly with a veto. Given that we just got a veto-proof farm bill for the least needy group out there -- the farmers -- anything can happen. (And aren't we craven about that!)

Now, we got news this morning that Fannie (NYSE: FNM) (Cramer's Take) is about to scrap a rule about requiring down payments in hard-hit areas. This is astonishing because it will wipe out a lot of equity for FNM as these are natural defaulters, but it sure helps clear out more inventory.

All of this litany can justify the HGX turn. Against it is unemployment, which is a big if, and the psychology of the consumer, who is once again proving surprisingly resilient.

Yesterday, Bob Marcin issued a note about whether we are in a recession or getting to one. Obviously the bullish litany says we will avoid it. The market is sure saying that.

Either way, the chances that this rally is for real, that the early-cycle plays have some staying power, seems much more destined after this week's action.

Oh, and don't forget, the level of bearishness is rather amazing given the potential turn. That matters too, as hedge funds that are bearish don't go to the sidelines, they place bearish bets, and when those don't turn out right -- as they didn't in retail this week -- the action is pretty explosive to the upside.

Next week we get Lowe's (NYSE: LOW) (Cramer's Take) and Home Depot (NYSE: HD) (Cramer's Take) earnings. In some ways these could be the biggest tells of all because they sell products that you use when you nest or when you fix up to sell.

If they have good numbers, the debate could be sealed and the upside made much more clear.

Probably pays to wait after a big up week like this. But the onus, this week, shifted to the bears to make their case, and that's a real tough stand to make after this week's action.

RELATED LINKS:

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

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Home prices fall further, when will I get my tax rebate?, & Satan's accountant - Today in Money 5/14

Allan Halprin — 2008-05-14T09:03:00+00:00

Filed under: Yahoo! (YHOO), eBay (EBAY), Sony Corp ADR (SNE), Money and Finance Today, Clear Channel Commun (CCU)

In the News:

· Freddie Mac Quarterly Loss Widens; Will Raise $5.5 Billion

· Clear Channel Poised to Go Private As It Agrees to Lower Buyout Offer of $17.9 Billion

· Yahoo Jumps as Carl Icahn Reportedly Buys Shares in Attempt for Proxy Fight

· Foreclosure Filing Surge 65% in April

· Tiny Smart Car Receives Top Crash Scores

· Sony Returns to Profit in 4Q

· Craigslist Countersues eBay

· Consumers Ditching Land-line Phones

· U.S. Airlines Expect Fewer Fliers This Summer

· Taco Bell's New Menu Goes for a Cheap Fill

Will My Tax Rebate Ever Come?
Those who filed their tax returns at the last minute could have longer waits for their money. But there is an easy way to check the status of your check.
Will My Rebate Check Ever Come? - Kiplinger.com

Home Prices Fall for 7th Straight Quarter
Twenty-eight metro areas saw double-digit drops in median house prices in the 12 months ending in March, according to the National Association of Realtors. Eight metro areas saw year-over-year price declines of more than 20 percent: Sacramento (29.2 percent); Riverside-San Bernardino, Calif. (27.7 percent); Lansing, Mich. (26.9 percent); San Diego (22.9 percent); Sarasota, Fla. (22.2 percent); Los Angeles (21.3 percent); Grand Rapids, Mich. (20.7 percent) and Las Vegas (20.2 percent).
Study: House prices -Bankrate.com

Delaying Retirement
As the economy stumbles, gas prices soar and housing prices tumble, more baby boomers are putting off retiring.
Baby boomers delay retirement - CNNmoney

When to Get a Home Equity Line of Credit
Taking out a home-equity line of credit to pay off costly credit card debt might seem like an attractive option as interest rates have dropped. Here are some important factors to consider when weighing the costs and benefits. Watch out for teaser rates and doubling up on debt.
When to Get a Home-Equity Line of Credit - TheStreet.com

Satan's Accountant
Even before the showdown in Texas, Bruce Wisan was trying to save the Mormon polygamists from their power-mad leader. But they believe Wisan was sent by the devil, which is making the job infernally hard.
Profile of Polygamist Sect's Lawyer - Portfolio.com

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Before the bell: Futures lower ahead of CPI

Melly Alazraki — 2008-05-14T07:41:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Sony Corp ADR (SNE), Clear Channel Commun (CCU), Economic data, Housing, Federal Reserve

As is almost the case ahead of some key data announcement, investors tend to be looking for direction. Indeed, stock futures were mildly lower early Wednesday morning as the Street awaits CPI reading on inflation. Also in focus this morning is housing after a reading on foreclosures surged.

Already on Tuesday investors seemed nervous as U.S. stocks finished mixed on Tuesday. Retail sales, Wal-Mart results, Hewlett Packard's acquisition of EDS and Federal Reserve Chairman Ben Bernanke's speech on the markets affected stocks with the Dow ending 44 points, or 0.34% lower, the S&P 500 nearly flat as it was down half a point, or 0.04%, and the Nasdaq Composite ending 6 points, or 0.27%, higher.

This morning, stocks will likely get a clearer direction after April's Consumer Price Index report due out at 8:30 a.m. EDT. Economists, according to Briefing.com expect CPI to rise 0.3% in April, while core CPI, which excludes the volatile food and energy prices, is estimated to be up 0.2% in April. Investors want the report to allow the Fed to keep interest rates as they are so as to bolster the dollar, and hence commodities, somewhat.

Speaking of the dollar and commodities, though, oil keeps trading on its own set of "rules," it seems. Overnight, oil set yet another record, shrugging off gains in the dollar. The record, near $127 a barrel, was due to concerns that Iran may cut production. Oil has retreated since as the reports may have been overblown. This morning, at 10:30 a.m. EDT the weekly release of U.S. fuel inventories is due. Meanwhile, congress voted Tuesday to challenge President Bush to temporarily halt the daily shipment of thousands of barrels of oil into the government's emergency reserve.

As for housing, homes facing foreclosure increased in April by 65% year-over-year, and were up 4% since March.
Nevada, Arizona, California and Florida were among the hardest hit states.

In major corporate news, CNBC reported late Tuesday the activist investor Carl Icahn, with its current 3.6% stake in Yahoo!, is considering a proxy fight for control of the board at Yahoo (NASDAQ: YHOO) following its rejection of the takeover bid by Microsoft (NASDAQ: MSFT). Shares of Yahoo jumped in afternoon trading Tuesday, but have somewhat leveled off.

Clear Channel Communications (NYSE: CCU) has settled a legal dispute with the lenders funding its private equity buyout, in essence agreeing to a lower buyout offer, and clearing the way for company to finally seal the deal nearly two years after it was first announced.

Sony Corp. (NYSE: SNE), which had a loss last year, reported a $277 million profit for the January-March quarter on Wednesday.

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Closing Bell: survey says national home prices tumbled 7.7%

Jon Ogg — 2008-05-13T16:14:00+00:00

Filed under: Dell (DELL), Hewlett-Packard (HPQ), International Business Machines (IBM), Clear Channel Commun (CCU), Countrywide Financial (CFC), Electronic Data Systems (EDS)

National home prices tumbled by 7.7% in the first quarter in a recent survey. While retail sales did fall -0.2% overall in the month of April, the ex-autos numbers were actually positive by +0.5%. Below are the unofficial closing levels for major averages:

DJIA 12,833.97 (-42.34; -0.33%)
S&P500 1,403.42 (-0.16; -0.01%)
NASDAQ 2,495.34 (+6.85; +0.28%)
10YR-TBond 3.909% (+0.134%)
TOP 10 ANALYST CALLS

Clear Channel Communications Inc. (NYSE: CCU) was up again on news of a settlement between the buyers and the banks for the $20 billion delayed buyout by Bain Capital and THL Partners. The court was adjourned until 2 pm today to allow settlement talks to continue. Shares were up 4% to $34.24 at the end of the day.

Countrywide Financial Corporation (NYSE: CFC) is on track for acquisition by Bank of America Corporation (NYSE: BAC) in the third quarter. Bank of America reported increased credit costs today as a result of the economic downturn and stated that the acquisition will alleviate the damage. Shares were up 3% at $4.93 at the end of the day.

Dell Inc. (NASDAQ: DELL) is rising today in the wake of the Hewlett-Packard Co. purchase of Electronic Data Systems Corp. for $13.9 billion in cash. Dell also announced a promo to encourage consumers to spend their tax rebates on personal computers. Shares were up 3% at $20.00 in the final minutes of the day.

Hewlett-Packard Company (NYSE: HPQ) announced the purchase of Electronic Data Systems Corporation (NYSE: EDS) for $25 per share for a total value of $13.9 billion in cash today. The combination will make the second-largest tech services provider behind International Business Machines Corporation (NYSE: IBM), whose shares were up almost 1% at $126.32 late in the day. Both Dell and Hewlett-Packard recently posted earnings that beat expectations. Hewlett shares were down more than 5% at $44.34 and EDS Shares were up 1% at $24.32 at the end of the day.

Sovereign Bancorp, Inc. (NYSE: SOV) was upgraded by Friedman Billings today after successfully raising $1.2 billion in a public common stock offering yesterday in its efforts to raise $1.5 billion to fortify itself in the economic uncertainty. Shares rose by more than 5% to $8.59 in the final minutes of the day.

Website Pros, Inc. (NASDAQ: WSPI) fell hard today after reporting earnings Tuesday evening. The company posted a net income of $0.6 million, the same as the first quarter in 2007, despite revenue growth of 88% and a non-GAAP operating income increase of 142%. Shares were down over 12% at $8.79 late in the day.

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Closing Bell: Merger talk, oil drop, dollar gain

Jon Ogg — 2008-05-12T16:18:00+00:00

Filed under: After the bell, Earnings reports, Deals, XM Satellite Radio (XMSR), Clear Channel Commun (CCU), Research in Motion (RIMM), ImClone Systems (IMCL)

Crude surpassed $126.00 before retreating down by $1.85 to $124.11 late in the day. Many are citing that the interest in owning the dollar is also partly to thank for today's gains. Below are the unofficial closing bell prices for major index levels:

DJIA 12,879.24 (+133.36; +1.05%)
S&P 500 1,403.50 (+15.22; +1.10%)
NASDAQ 2,487.86 (+42.34; +1.73%)
10YR-TBond 3.775% (+0.008%)
52 WEEK LOWS
ANALYST CALLS

AnnTaylor Stores Corp. (NYSE: ANN) rose today after it forecast that first quarter profit will exceed projections. Additionally, the women's apparel store reported its plans to drop its older women fall line but push the opening of its Loft outlets. Shares were up 16% at $28.50 in the final minutes of trading.

Clear Channel Communications, Inc. (NYSE: CCU) jumped today after the possibility that a settlement between the private equity buyers and six financing banks may go through to allow the buyout by Bain Capital and THL Partners. The terms are supposedly reduced from $39.50 per share to $36.00 per share. Trials between the banks and the buyers were supposed to begin today. Shares were up nearly 10% at $32.89 in the final minutes of the day.

Cumulus Media Inc. (NASADAQ: CMLS) shares plunged after terms for a buyout by Merrill Lynch Private Equity Group and the company could not be agreed upon for the $1.3 billion valued transaction. Shares were down almost 24% at $4.42 in the final minutes today on the news.

ImClone Systems Incorporated (NASDAQ: IMCL) dipped today after suffering a downgrade by Morgan Stanley. Shares were down over 6% at $41.87 in the final minutes today on the news.

Research In Motion Ltd. (NASDAQ: RIMM) rose today after announcing changes to its BlackBerry, making it more competitive with Apple Inc. (NASDAQ: AAPL)'s iPhone. Shares were up over 7% at $142.45 in the last minutes of the day.

XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) reported a wider loss today compared to a year ago. It posted a loss of $129.3 million or $0.42 EPS and on reports of subscriber growth. Shares rose 4% to $12.30 in late day trading.

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Clear Channel -- finally a deal?

Tom Taulli — 2008-05-12T11:37:00+00:00

Filed under: Deals, Citigroup Inc. (C), Clear Channel Commun (CCU), Morgan Stanley (MS), Wachovia Corp (WB)

Just a few weeks ago, it looked like the $19.4 billion buyout of Clear Channel Communications (NYSE: CCU) was dead. But in the deal market, things can change quickly.

Just today, the New York Supreme Court said there will be a stay on the litigation on the deal. According to CNBC, it looks like the parties are engaged in heavy settlement talk.

No doubt, a trial could be problematic for the banks that are on the hook for $22 billion in debt financing. These banks include: Citigroup (NYSE: C), Credit Suisse (NYSE: CS), Morgan Stanley (NYSE: MS), Royal Bank of Scotland, Deutsche Bank AG and Wachovia (NYSE: WB).

Now, they may be willing to fund the deal.

Why? Well, it looks like the debt markets are improving and the major banks have worked hard to boost their balance sheets.

In other words, the US credit crunch may be thawing. If so, we may see some more dealmaking - which would be a relief for Wall Street banks eager to get some juicy fees.

So far in today's trading, Clear Channel's shares are up 9.5%.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Option Update: Clear Channel call active as shares rally on reports of trial delay

Paul Foster — 2008-05-12T11:00:00+00:00

Filed under: Major movement, Clear Channel Commun (CCU), Options

Clear Channel (NYSE: CCU) is recently up $1.70 to $31.96.

Thomas H. Lee Partners and Bain Capital have filed suits to try to force a bank group to fund their $19 billion buyout of CCU. The bank group is asking the courts to dismiss a part of the litigation.

Bloomberg is reporting that the CCU trail in New York State Court has been delayed by one day and that lawyers decline to comment on whether a settlement is in the works.

CCU call option volume of 23,870 contracts compares to put volume of 5,295 contracts. CCU May 32.5 straddle is priced at $4.10. CCU June option implied volatility of 89 is above its 26-week average of 61 according to Track Data, suggesting larger price risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Earnings highlights: Cisco, News Corp., Crocs, Clear Channel, WWE, CVS and others

Trey Thoelcke — 2008-05-11T09:10:00+00:00

Filed under: Earnings reports, Cisco Systems (CSCO), Sara Lee Corp (SLE), Clear Channel Commun (CCU), NYSE Euronext (NYX), CVS Corp (CVS), News Corp'B' (NWS), Crocs Inc (CROX)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Cisco Systems Inc. (NASDAQ: CSCO) beat Q2 expectations but offered a weak outlook.
Clear Channel Communications Inc. (NYSE: CCU) higher Q1 profits failed to beat expectations.
Crocs Inc. (NASDAQ: CROX) just missed EPS estimates but raised its full-year guidance.
CVS Caremark Corp. (NYSE: CVS) strong Q1 results only met Wall Street expectations.
eResearch Technology Inc. (NASDAQ: ERES) beat Q1 expectations and offered Q2 and full-year guidance.
Foster Wheeler Ltd. (NASDAQ: FWLT) beat estimates due to a boost in its power plant segment.
Internet Brands Inc. (NASDAQ: INET) reported strong Q1 results on ongoing M&A.
Midway Games Inc. (NYSE: MWY) widened its loss in Q1 but beat expectations.
News Corp. (NYSE: NWS) Q3 earnings jumped on a one-time transaction with Liberty Media.
NVIDIA Corp. (NASDAQ: NVDA) missed Q1 estimates but was upgraded by analysts anyway.
NYSE Euronext (NYSE: NYX) reported a first-quarter profit above analysts' estimates.
Sara Lee Corp. (NYSE: SLE) Q3 profits surged but fell short of analysts' expectations.
World Wrestling Entertainment Inc. (NYSE: WWE) posted strong results but couldn't cover its dividend.

Upcoming results to watch for include Sprint Nextel (NYSE: S), XM Satellite Radio (NASDAQ: XMSR), Sirius Satellite Radio (NASDAQ: SIRI), Electronic Arts (NASDAQ: ERTS), Whole Foods (NASDAQ: WFMI), Wal-Mart (NYSE: WMT), Deere & Co. (NYSE: DE), Toll Brothers (NYSE: TOL), Applied Materials (NASDAQ: AMAT), JC Penney (NYSE: JCP), Macy's (NYSE: M), Nordstrom (NYSE: JWN), Hewlett-Packard (NYSE: HPQ), Abercrombie & Fitch (NYSE: ANF).

Visit AOL Money & Finance for more earnings coverage.

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Clear Channel (CCU) first-quarter profit soars but misses estimates

Eliza Popescu — 2008-05-09T09:52:00+00:00

Filed under: Earnings reports, Deals, Marketing and advertising, Clear Channel Commun (CCU), Economic data

Shares of radio broadcaster Clear Channel Communications Inc. (NYSE: CCU) were slightly up in early trading after the company posted higher first-quarter profit boosted in part by gains in its outdoor advertising unit. Though, the company was not able to beat analysts' predictions as the weak economy put pressure on the overall advertising market.

Clear Channel Communications announced that its quarterly profit surged to $799.7 million, or $1.61 per share. The income figures were definitely something to cheer about. During its first quarter last year, the company had net income of $102.2 million or 21 cents per share. Excluding one-time items, earnings for the quarter would have been $0.19 per share. Analysts' forecast (which typically exclude one-time items) was for $0.21 per share, according to Thomson Reuters.

The media and advertising display company also said that quarterly revenue rose 3.9% to $1.56 billion, compared with $1.51 billion reported in the same period a year ago, helped by favorable foreign exchange rates; excluding the effect of the week dollar, revenue rose only 1%. Analysts had been expecting to see slower sales of $1.53 billion.

Clear Channel is currently in the process of trying to go private. The company's shareholders approved a merger agreement with a group led by Thomas H. Lee Partners and Bain Capital Partners. But the deal fell into litigation this year when the companies sued their bankers who wanted to pull out of their financing commitment. In the light of those troubles, it looks like for the moment the radio broadcaster is unable to estimate a closing date and is not even certain that a closing will happen.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Before the bell: ATVI, BMY, SNY, CCU, AAPL, KO, MCD ...

Melly Alazraki — 2008-05-09T08:19:00+00:00

Filed under: Before the bell, Earnings reports, Apple Inc (AAPL), Coca-Cola (KO), McDonald's (MCD), Bristol-Myers Squibb (BMY), Clear Channel Commun (CCU), Activision Inc (ATVI)

Before the bell: AIG, Citi pressure stock futures lower

Activision (NASDAQ: ATVI) late Thursday reported a fourth-quarter profit that handily beat expectations as video games sales nearly doubled with strong demand for Guitar Hero 3 and Call of Duty 4 games. ATVI shares are up over 4.5% in premarket trading.

Bristol-Myers Squibb (NYSE: BMY) and Sanofi-Aventis (NYSE: SNY) are about to face a generic threat from Swiss drug firm, Schweizerhall Holding, that said it's going to soon launch a generic version in Germany of Plavix blood-thinning drug.

Clear Channel (NYSE: CCU) reported its profit soared to $799.7 million or $1.61 per share in the first quarter while revenues rose 4% to $1.56 billion. The results beat expectation even when taken excluding one-time items that have earnings rising 70% to $161.4 million or 32 cents a share.

Apple Canada Inc. is offering $45 credits to Canadian residents who own a new first-, second- or third-generation iPod purchased before June 24, 2004 following two class-action suit regarding the rechargeable battery in the iPod.
Coca-Cola Co (NYSE: KO) expects U.S. sales of its carbonated soft drinks to fall slightly this year but rise in 2009, according to CEO Neville Isdell. Isdell, who spoke Thursday at the Executives' Club of Chicago, also said the Coca-Cola brand was not in a continuous decline, with Coke Zero and other new products helping it to improve market share.

McDonald's Corp (NYSE: MCD) also reported same-store (restaurant) sales Thursday along with the other major retailers, saying sales rose 5% globally in April, helped by strong sales in China, Australia and Russia. While the U.S. remained relatively weak with a 2% growth, Europe sales grew by 6.3% and the Asia/Pacific, Middle East and Africa division posted growth of 7.8%.

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The week in preview: Optimism reigns, but will earnings news prolong the fiesta?

Andrew Horowitz — 2008-05-04T12:00:00+00:00

Filed under: Hansen Natural (HANS), Walt Disney (DIS), Estee Lauder (EL), Federal Natl Mtge (FNM), Clear Channel Commun (CCU), Economic data, Initial public offerings

We are investing in optimistic times. News -- good or bad -- seems to magically morph into an opportunity to move markets higher. In the past week, even more than usual, weak economic news was accompanied by commentary along the lines of, "it could have been worse," and other euphoric sentiments.

It is difficult to determine whether this is another short-covering bear market bounce or a real rally. But next week will bring us new information that will start to indicate where the answer lies. For now, investors are looking at the glass as half-full. Cash on the sidelines is moving in to equities, partly because there are very few other alternatives. Yields are low, commodities are risky and real estate is taboo.

Next week begins with the celebration of Cinco de Mayo, yet the markets were way ahead -- it has shifted into party mode on its own during the past few weeks. Here is a summary of key events to watch during the week ahead:

Monday, May 5

First off, the market gets a chance to react to news of Microsoft withdrawing its bid for Yahoo. It will be interesting to see how far Yahoo's stock price sinks as well as what all the market watchers think Yahoo (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT) will do next.

Hewitt Associates (NYSE: HEW) the HR firm that has been showing amazing strength is set to report. First Call is looking for quarterly earnings of $.38 as compared to a year ago of $.23. There may be opportunity for this firm as we go into harder economic times where companies are looking for an easy solution to labor concerns.

Also reporting is Nam Tai Electronics (NYSE: NTE). It could have a good quarter since the need for computer parts is on the rise. Intel and Apple did well to show that international demand is still hot for electronics and this is one of the parts manufacturers. Through its electronics manufacturing services operations, Nam Tai makes electronic components and sub-assemblies, including liquid crystal display (LCD) panels, LCD modules, flexible printed circuit sub-assemblies and image sensors modules and printed circuit board assembly for Bluetooth headsets. First Call estimates are for $.19 as compared to year ago of $.19 per share on $163 million of revenue.

Chicken anyone? The recent rise in food prices and the concern over demand will show up in the earnings for Pilgrims Pride (NYSE: PPC). We have seen a few competitors report recently and the numbers have been coming in solid. Earnings are expected to be a loss of 81 cents. The earnings loss is expected to be double that of the year ago period.

If you think that the markets are full of hot air, maybe you should look at Airgas (NYSE: ARG) as a potential opportunity. Technically the chart looks similar to almost every other stock in the U.S. It is showing a double bottom with a share price now approaching its breakout point. Keeping above its 200 day moving average and making higher lows, makes for a nice chart. Watch for the earnings announcement, which is expected to show a nice move to $.73 for the recent quarter on $1.6 $1.06* billion of revenue. (*CORRECTED REVENUE)

After the close, Career Education (NASDAQ: CECO) is going to show who is boss. In a slowing economy when workers are laid off... what do they do? Okay, some go home, collect unemployment and drink beer. But there are many who want to be re-trained and find better jobs when the economy gets back into gear. Given that trend, recently, ITT Educational Services (NYSE: ESI) blew out numbers and shares rocketed 30%. Could we see a similar move for CECO? Perhaps, although the ESI news already helped move the stock. But, once again, on a technical basis, the shares look like they are poised to explode if the quarterly earnings come in at or above the expected 21 cents.

Have you ever noticed that the parking lot at the local fitness club is packed in January? After the taco parties, salsa eating and cervesa drinking from today's festivities, there may be a few amigos who want to shed some of those unsightly pounds. Next stop: Weight Watchers (NYSE: WTW)! Technically the shares are in a mid-term downtrend, yet have been somewhat stable since last quarter's well received earnings release. The street is looking for 74 cents on $442 million of revenue. Let's see how they trimmed the fat to bring up margins before taking too big of a bite with this one.

Tuesday May 6

The partying never stops! Cedar Fair (NYSE:FUN), the amusement park group, will be reporting and looking at the potential for a quarterly loss of $1.05 per share. This is compared to the year ago report at $1.02. Shares have been on a roller-coaster ride lately.

Now for the big one: Fannie Mae (NYSE:FNM). With credit markets seeing a great deal of uncertainly, FNM has been one of the stocks in focus. From the depths of despair, the shares have risen over the past few weeks. No doubt, there are problems. The real question is has the worst passed? Investors are betting they have and the earnings will tell them if they are correct. First Call estimates a loss of 81 cents as compared to a gain of 85 cents last year, same quarter. (See additional FNM/FRE Commentary)

Lots of lipstick on the economic pig may benefit Estee Lauder (NYSE: EL). The company is reporting this day and expectations are for a quarterly gain of 47 cents on $1.879 billion of revenue.

If Tecate was not the choice for Monday's Mexican celebration, then maybe a frosty Molson (NYSE:TAP)? I have my money on beer during economic downturns. Agree? Maybe this is why quarterly earnings estimates are expected at 29 cents, up from 14 cents a year ago. CHUG...CHUG...CHUG!

Bellwether Cisco (NASDAQ:CSCO) is reporting after the close. Technology has been on fire and, if the dollar's weakness has had anything to do with that, network gear company Cisco should benefit. Look for 36 cents on $9.75 billion of revenue.

Rounding out the fun for this day, Disney (NYSE: DIS) will tell us how it has been affected by the global slowdown. If there is any truth to the notion that consumers are spending less, then there could be problems for Disney. Expectations are for quarterly earnings at50 cents per share.

Wednesday, May 7

Earnings for Playboy (NYSE: PLA) are scheduled for after the close on Tuesday, but it will be much more fun to be a part for the action during the conference call. Aside from revealing its strategy and a behind-the-scenes look at earnings, investors will be looking to PLA to strip out all of the excess and cut margins so that they can continue to have a leg-up on the competition. Analysts are suggesting that 6 cents is the per share earnings for this quarter. I will be reading the earnings report closely. Usually there is something interesting to look at. Believe me, I read it for the comments, not the pictures.

Caffeine, I need caffeine. Not coffee, no, no , no - it makes me sweat. How about an energy drink instead? That is what Hansen Natural (NASDAQ: HANS) is hoping you will say. Hansen has been capitalizing on the energy drink craze with its Rumba, Energade and Energy Formula beverage line. Earnings estimates are for a 60% increase over last year to 35 cents per share from revenues of $220 million.

Thursday, May 8

If you believe that the all of the giant casinos are built on the backs of losers, maybe the revitalization of the southern gambling zone, post Katrina will help out Ameristar Casinos (NASDAQ: ASCA). There is nothing positive to say about the chart or fundamentals these days except if you want to roll the dice, have at it. The shares are in a confirmed downturn and riding an overbought topside Bollinger band. Look for 31cents of earnings on the announcement.

Dendreon (NASDAQ: DNDN) is going to announce earnings. This is an interesting biotech company as it has been embroiled in a fight to bring Provenge to market. This is a drug specifically geared toward prostate cancer and seems to work, or so they say. The FDA is being difficult. First Call is looking for revenues of $110,000 with a loss of 25 cents per share. (More insight on DNDN)

Maybe, just maybe, the partying this week gets out of hand. Then, it happens. You ask her that magical question and look to tie The Knot. Your next stop? TheKnot.com (NASDAQ: KNOT) -- your place for all-things wedding-related. This dot com has been around for a while and is still holding on strong. Investors divorced themselves of this one a while ago and shares are down a whopping 50% since the October 2007 high. Earnings are expected to be 5 cents per share on $25 million of revenue.

If that stops your heart, you may look towards the results of fast-moving Vital Signs (NASDAQ: VITL). The company is the designer, manufacturer, and marketer of airway management products for the anesthesia, respiratory/critical care, and interventional cardiology/radiology and sleep disorder markets. Fun stuff indeed! Revenues are expected to be $57 million with earnings of 69 cents for the quarter.

Friday, May 9

Fridays don't usually bring much excitement. A time to kick back with a cold beer (didn't we do that already this week?) and plan for the week to come. Look for Clear Channel (NYSE: CCU) as a proxy for the advertising sector. Otherwise, take a peek at the trade balance numbers, including the trade deficit. There is no reason to believe that there will be any change of direction.

IPO/New Issue Market

Looking at the IPO calendar for the upcoming week, there are three major deals likely to price. The most important one to watch is Colfax Corporation which is being brought by Merrill Lynch. Quite literally a nuts and bolts company, Colfax makes pumps and fluid handling products. Without delving into the high quality customer base, let's just note the $500 million dollar revenue base and strong profitability margins. The stock (ticker to be CFX) is expected to price at $15 to $17, but don't be surprised if this range is higher due to strong demand for shares.

In addition, we have Western Gas Partners LP (WES) which is expected to price on May, 9th. Don't look for too much out of this name, as there will likely be plenty of stock to go around for those that want it. However, the dividend yield is likely to be high so it may prove to be a good long-term total return purchase. Finally, there is another solar company to join the litany of public solar companies already trading. Real Goods Solar, Inc. (RSOL) has a hokey name and that's about it. Not much in the way of profits, and with no brand-name underwriting, do not expect much in the way of initial returns. (For more info check out ZachStocks.)

Disclosure: Horowitz & Company may hold positions of securities mentioned as of the date of publish. Andrew Horowitz is a money manager and author of the The Disciplined Investor - Essential Strategies for Success. Data provided by Briefing.com and other sources believed to be reliable. Dates may change without notice.

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Newspaper wrap-up: Wendy's and Nelson Peltz to today unveil deal

Laurie Pasternack — 2008-04-24T07:50:00+00:00

Filed under: Newspapers, Magazines, Citigroup Inc. (C), Clear Channel Commun (CCU)

MAJOR PAPERS:

Wendy's International Inc (NYSE: WEN), struggling since the 2002 death of founder Dave Thomas, and pressed by investor Nelson Peltz to improve results, will today announce a deal with Peltz, the Wall Street Journal reported.
The Wall Street Journal also reported that the House Financial Services Committee voted to approve $15B in loans and grants so that local governments can buy foreclosed homes throughout the U.S. Committee chairman Barney Frank said the bill will avoid abuse, including requiring that purchased homes be a minimum 60 days into the process.
Adding to evidence of a rally in corporate credit markets, the Financial Times reported that Deutsche Bank AG (NYSE: DB) is preparing another big sell-off of its leveraged loans in Europe.

OTHER PAPERS:

Several e-mails that have been obtained by the New York Post sent between Wall Street banks may prove a serious setback in the fight over the takeover Clear Channel Communications Inc (NYSE: CCU). The e-mails reportedly show the banks, led by Citigroup Incorporated (NYSE: C) and Deutsche Bank, looking to get out of financing the buyout by Bain Capital and THL Partners by offering terms "they know the [firms] won't be able to accept."

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Early analyst calls: CMR, ALL, CCU

Douglas McIntyre — 2008-04-09T08:04:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Allstate Corp (ALL), Bed Bath and Beyond (BBBY), Clear Channel Commun (CCU), salesforce.com inc (CRM)

Bernstein downgraded Salesforce.com (NYSE: CRM) to "market perform" from "outperform" according to Briefing.com. The news service also reports that Citigroup initiated Southern Cooper (NYSE: PCU) with a "sell".

Banc of America Securities said that Allstate (NYSE: ALL) may miss first quarter earnings due to payments for storm damages according to the AP.

Clear Channel (NYSE: CCU) cut to "hold" at Stanford Research according to 24/7 Wall St. The website also reports that Bed Bath & Beyond (NASDAQ: BBBY) cut to "sell" at Piper Jaffray

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Dude, where's my M&A fees?

Tom Taulli — 2008-03-31T11:11:00+00:00

Filed under: Private equity, Clear Channel Commun (CCU)

It's a scary thing for investment bankers: the "credit crunch." It has essentially depleted the industry, as dealmaking has shrunk significantly.

In fact, according to Bloomberg, there was a 35% drop in M&A fees for Q1.

True, the M&A business is known for its "feast-famine" cycles, but this time it looks like things could be particularly bleak - and perhaps long lasting. Just look at the break-down of the $19.5 billion buyout for Clear Channel Communications (NYSE: CCU).

Basically, financial institutions are in the process of repairing their balance sheets, and as a result, don't have the firepower to finance deals -- especially large ones. In fact, these firms need to find ways to deal with more than $200 billion in LBO loans.

There is also likely to be a slowdown in strategic acquisitions. That is, as the US economy slows down - which may impinge the global economy - where buyers are likely to get jittery. Why take big risks in such an environment?

Now, there are offsetting factors such as the emergence of mega sovereign wealth funds. However, they may get some political pushback.

In other words, don't expect a comeback anytime soon.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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Cramer on BloggingStocks: Rationality's price

Jim Cramer — 2008-03-28T08:50:00+00:00

Filed under: Deals, Private equity, Market matters, Clear Channel Commun (CCU), Cramer on BloggingStocks

TheStreet.com's Jim Cramer wonders what's going on with the Clear Channel deal.

The focus on this Clear Channel (NYSE: CCU) (Cramer's Take) breakdown, the endless focus, is on the $500 million that the private-equity team, Bain/Lee, will have to pay Clear Channel.

What's more important, I believe, is the billions of dollars I believe the bankers will owe Bain/Lee if they don't find some way to cut this price and make this deal smaller.

There have been dozens of deals that were struck during this period that the bankers wished they could walk away from but didn't. Which says to me, how desperate are they now NOT to have to pay the $22 billion in this very large deal. How desperate are they given the fact that a judge will, I believe, find against them and the damages will be immense, as big as the billions that Lee/Bain can show -- and will -- they would have made if the deal closed in the out years.

I hailed the breakdown as a return to rationality because of the fundamentals of radio and how terrible they are. But you can't break the deal on those because no matter how bad the fundamentals of radio are, CCU's fundamentals are certainly holding up better than everyone else's because of its near-monopoly status. Plus, outdoor ads have been strong. These guys are certainly doing better than another big player -- Cumulus (NASDAQ: CMLS) (Cramer's Take), which can't close its deal, either.

I believe the banks will have billions of dollars in exposure in courts, and that they are simply making a calculation that they can put those damages off until their capital is rebuilt. It's just the wrong time to take the money, give it to the deal and then have the deal default, which is what I am sure they are worried about despite all of the rosy projections.

That means we have a situation where either the banks are supremely confident of some kind of case I can't think of, or the banks are so depleted of capital at the moment that they would just as soon drag things out. If it is the latter, why didn't more avail themselves of the Fed's new program yesterday? If it's the latter, why not just keep haggling?

Whatever, if there is a right thing to do it is for the banks to eat the deal and move on. Right now, while I do not expect a court to force the deal to close -- hard to get specific performance -- I do suspect that there are a lot of bad emails around among the banks and when the contract lawsuit gets around to damages they could be far more than the half-billion sum you are hearing about now. Maybe 10 times more.

So, rationality's back, but perhaps at too high a price.

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Oversold stocks, how to pay zero taxes & new ways to save - Today in Money 3/27

Allan Halprin — 2008-03-27T09:02:00+00:00

Filed under: McDonald's (MCD), Money and Finance Today, Clear Channel Commun (CCU), ConAgra Foods (CAG), Lennar Corp'A' (LEN), Oracle Corp (ORCL), AMR Corp (AMR), Delta Air Lines (DAL)

In the News:

· 4th Quarter GDP Rises Only 0.6%

· More Government Bailouts May Be on the Way

· Oracle Shares Plunge on Disappointing Earnings

· Lennar Posts Another Loss, Sees Worsening Housing Market

· ConAgra Profit Rises 60%

· Clear Channel Wins Ruling on Buyout

· Bus Tours Showcase Foreclosed Homes

· YouTube to Provide More Viewership Info

· More American & Delta Flights Canceled

· Egg McMuffin Inventor Dies at 89

Oversold Stocks Worth a Closer Look
These stocks have taken a pounding in the past few months. But they're looking ripe for smart buyers now. They include Nvidia, Game Stop and Seagate.
Timely Trio Of Oversold Stocks - Forbes.com

How to Pay Zero Taxes
Nearly 50 million Americans do it. But once you see how, you'll be glad you're not one of them. Here are top ways you can get your taxes to zero.
How to pay zero taxes - MONEY Magazine

Want to Slash Your Gas Prices? Slow Down
There is one driving tip that will probably save you more gas than all the others, especially if you spend a lot of time on the highway: Slow down. Speeding on the highway adds a surprising amount to your fuel costs. Drive 100 miles in a typical car and every 10 miles per hour you drive over 60 is like the price of gasoline going up about 59 cents a gallon.
Speeding wastes gas - CNNmoney

Fastest Growing Metro Areas in U.S.
Dallas-Ft. Worth tops population growth according to numbers released by the U.S. Census Bureau Thursday. 8 of the top 10 growers are in the south. The include Atlanta, Phoenix, Houston, Riverside, CA, Charlotte and Austin.
Dallas-Fort Worth, Texas grows more than any other U.S. city - CNNmoney

New Ways to Save
The days of earning 4% or more in a savings account aren't over quite yet. A few big-name banks, such as Wachovia and Washington Mutual, are aiming to buck the downward trend of lower rates. They're offering new savings accounts that boast annual percentage yields of up to a very attractive 6.5%. Just watch out for all the restrictions.
New Savings Accounts Come With Perks and Restrictions - SmartMoney.com

How Safe Are Your Medical Records?
A host of big-name companies is launching initiatives aimed at helping people take control of their personal health-care information and making it more useful to them. But the elephant in the room is privacy.
As more of our health records move online, privacy concerns grow - MarketWatch

Most Overexposed Celebrities
We are so over these celebrities who can't seem to avoid the spotlight. Topping the list are five women that just won't go away -- Paris Hilton, Britney Spears, Lindsay Lohan, Pam Anderson and Nicole Richie.
Most Overexposed Celebrities - Forbes.com

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Pre-market movers (ORCL) (CCU) (MF)

Douglas McIntyre — 2008-03-27T08:06:00+00:00

Filed under: Before the bell, Clear Channel Commun (CCU), Oracle Corp (ORCL)

Oracle (NASDAQ:ORCL) is off almost 8% on weaker-than-expected earnings.

Clear Channel (NYSE:CCU) is up over 12% on news of a court order that banks must fund a private equity buy-out.

MF Global (NYSE:MF) is up 9% on news that it has freed up $800 million in liquidity.

SAP (NYSE:SAP) is down 6% on bad news from riva Oracle.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

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