posted by Jared Fruland
copied from http://news.moneycentral.msn.com
Standard & Poor's, the world's leading index provider, announced today in a research report that it expects M&A activity for both public and private companies to increase in both the number of deals and their dollar size in 2007, as well as become more competitive in nature.
Standard & Poor's research shows that publicly traded companies have built up enormous war chests in both cash on hand and treasury shares -- a result of eight consecutive quarters of enormous share buybacks -- yet their M&A activity has been timid when compared to their excess resources and need for growth.
"The enormous size of these unused, liquid resources speak to the potential of future returns for shareholders," says Howard Silverblatt, Senior Index Analyst at Standard & Poors, and author of the study. "As earnings decline and an economic slowdown becomes more apparent, investor's demand for companies to utilize these resources will grow, changing the risk/reward trade-off for management."
The Standard & Poor's report also notes the growth in M&A deals by private equity funds. These funds are set up to take on additional risk in hope of receiving additional reward. "The timid (but growing) M&A action by the public sector has left private equity funds with a wider selection of target companies and fewer public companies to compete against for their target," says Silverblatt. "The result is less expensive deals that limit the return to shareholders."
Given the available resources, the speculative appetite on the private side for greater returns, and a need to maintain recent high profitability on the side of public entities, Standard & Poor's expects M&A to continue to increase and create a more competitive environment. "Completion of M&A activity between both public and private concerns should increase in 2007, creating higher premiums and raising the bar on the necessary return on invested capital," concludes Silverblatt.
Wednesday
Pressure to Utilize Excess Resources Should Lead to Increased M&A Activity in 2007, Says S&P Report
posted by Jared Fruland
copied from http://news.moneycentral.msn.com
Standard & Poor's, the world's leading index provider, announced today in a research report that it expects M&A activity for both public and private companies to increase in both the number of deals and their dollar size in 2007, as well as become more competitive in nature.
Standard & Poor's research shows that publicly traded companies have built up enormous war chests in both cash on hand and treasury shares -- a result of eight consecutive quarters of enormous share buybacks -- yet their M&A activity has been timid when compared to their excess resources and need for growth.
"The enormous size of these unused, liquid resources speak to the potential of future returns for shareholders," says Howard Silverblatt, Senior Index Analyst at Standard & Poors, and author of the study. "As earnings decline and an economic slowdown becomes more apparent, investor's demand for companies to utilize these resources will grow, changing the risk/reward trade-off for management."
The Standard & Poor's report also notes the growth in M&A deals by private equity funds. These funds are set up to take on additional risk in hope of receiving additional reward. "The timid (but growing) M&A action by the public sector has left private equity funds with a wider selection of target companies and fewer public companies to compete against for their target," says Silverblatt. "The result is less expensive deals that limit the return to shareholders."
Given the available resources, the speculative appetite on the private side for greater returns, and a need to maintain recent high profitability on the side of public entities, Standard & Poor's expects M&A to continue to increase and create a more competitive environment. "Completion of M&A activity between both public and private concerns should increase in 2007, creating higher premiums and raising the bar on the necessary return on invested capital," concludes Silverblatt.
copied from http://news.moneycentral.msn.com
Standard & Poor's, the world's leading index provider, announced today in a research report that it expects M&A activity for both public and private companies to increase in both the number of deals and their dollar size in 2007, as well as become more competitive in nature.
Standard & Poor's research shows that publicly traded companies have built up enormous war chests in both cash on hand and treasury shares -- a result of eight consecutive quarters of enormous share buybacks -- yet their M&A activity has been timid when compared to their excess resources and need for growth.
"The enormous size of these unused, liquid resources speak to the potential of future returns for shareholders," says Howard Silverblatt, Senior Index Analyst at Standard & Poors, and author of the study. "As earnings decline and an economic slowdown becomes more apparent, investor's demand for companies to utilize these resources will grow, changing the risk/reward trade-off for management."
The Standard & Poor's report also notes the growth in M&A deals by private equity funds. These funds are set up to take on additional risk in hope of receiving additional reward. "The timid (but growing) M&A action by the public sector has left private equity funds with a wider selection of target companies and fewer public companies to compete against for their target," says Silverblatt. "The result is less expensive deals that limit the return to shareholders."
Given the available resources, the speculative appetite on the private side for greater returns, and a need to maintain recent high profitability on the side of public entities, Standard & Poor's expects M&A to continue to increase and create a more competitive environment. "Completion of M&A activity between both public and private concerns should increase in 2007, creating higher premiums and raising the bar on the necessary return on invested capital," concludes Silverblatt.
Friday
Tough week on Wall Street
posted by Jared Fruland
copied from http://news.moneycentral.msn.com
Dow, S&P 500 fall as economic reports ignite worries about interest rates; Nasdaq gains thanks to Microsoft.
Stocks stumbled Friday as worries about higher interest rates overshadowed the day's corporate news, including upbeat earnings from Microsoft and Caterpillar, weaker results from Amgen and a Citigroup downgrade of Cisco Systems.
The Dow Jones Industrial average (down 15.54 to 12,487.02, Charts) and the broader S&P 500 (down 1.72 to 1,422.18, Charts) lost 0.1 percent.Stocks zigzagged throughout the week until Thursday when the Dow suffered its worst one-day selloff in two months after a report hinting at a bottoming in the housing market - paired with a spike in Treasury yields - revived worries about higher interest rates.
Investors clung to such worries Friday as a second housing market report suggested a bottoming, this time in new home sales, in addition to a strong December durable goods orders report.
Strong economic growth is good for corporate profits and ultimately leads to stock gains, but investors may be concerned that if growth is too strong it will cause the Federal Reserve to start raising interest rates again.
"People are worried that stronger growth will bring the Fed off the sidelines and drive interest rates higher, at the same time that earnings growth is slowing," said Charles Smith, chief investment officer at Fort Pitt Capital Group.
Stocks stumbled Friday as worries about higher interest rates overshadowed the day's corporate news, including upbeat earnings from Microsoft and Caterpillar, weaker results from Amgen and a Citigroup downgrade of Cisco Systems.
The Dow Jones Industrial average (down 15.54 to 12,487.02, Charts) and the broader S&P 500 (down 1.72 to 1,422.18, Charts) lost 0.1 percent.Stocks zigzagged throughout the week until Thursday when the Dow suffered its worst one-day selloff in two months after a report hinting at a bottoming in the housing market - paired with a spike in Treasury yields - revived worries about higher interest rates.
Investors clung to such worries Friday as a second housing market report suggested a bottoming, this time in new home sales, in addition to a strong December durable goods orders report.
Strong economic growth is good for corporate profits and ultimately leads to stock gains, but investors may be concerned that if growth is too strong it will cause the Federal Reserve to start raising interest rates again.
"People are worried that stronger growth will bring the Fed off the sidelines and drive interest rates higher, at the same time that earnings growth is slowing," said Charles Smith, chief investment officer at Fort Pitt Capital Group.
Thursday
Dow has ground breaking loss
by Jared Fruland
The Dow Jones Industrial Average fell today a drastic 112 points. This is very shocking compared to the amazing increases the market has been yielding the past few months. Just yesterday the Dow gained a significant 89 points. The main reason for this, Inflation. The inflation explanation direct from CNN Money is; Stocks slumped Thursday, with the Dow industrial losing more than 100 points one session after hitting a record high after a weak housing report and a spike in Treasury bond yields revived worries about interest rates and the economy.
The Dow Jones Industrial average (down 119.21 to 12,502.56,) lost 119 points, its biggest one-day decline in almost two months. The blue-chip barometer had ended the previous session at a record close.
So the main reason for declining point in the Dow is due to inflation and treasury bond yields. My recommendation is to hold all shares in the Dow Industrial Average.
The Dow Jones Industrial Average fell today a drastic 112 points. This is very shocking compared to the amazing increases the market has been yielding the past few months. Just yesterday the Dow gained a significant 89 points. The main reason for this, Inflation. The inflation explanation direct from CNN Money is; Stocks slumped Thursday, with the Dow industrial losing more than 100 points one session after hitting a record high after a weak housing report and a spike in Treasury bond yields revived worries about interest rates and the economy.
The Dow Jones Industrial average (down 119.21 to 12,502.56,) lost 119 points, its biggest one-day decline in almost two months. The blue-chip barometer had ended the previous session at a record close.
So the main reason for declining point in the Dow is due to inflation and treasury bond yields. My recommendation is to hold all shares in the Dow Industrial Average.
Wednesday
Earnings Galore
posted by Jared Fruland
copied from http://money.cnn.com
Among other stocks moving on quarterly results, Corning (up $2.13 to $20.97, Charts) surged 10 percent in active trading after reporting higher fourth-quarter sales and earnings that topped estimates. Corning also warned that first-quarter profit won't meet expectations.
Cell phone chip maker RF Micro Devices (up $0.92 to $7.80, Charts) reported better than expected earnings late Tuesday and issued a current-quarter forecast that is above analysts' projections. Shares gained 11 percent Wednesday.
Dow component AT&T (up $1.51 to $36.87, Charts) rallied on news that subsidiary Cingular Wireless posted sharply higher fourth-quarter profit.
On the down side, Advanced Micro Devices (down $1.49 to $16.02, Charts) reported a quarterly loss late Tuesday versus a profit a year earlier. The results were worse than analysts were expecting. The chip maker also issued first-quarter profit guidance that is short of forecasts.
On Wednesday morning, Dow component McDonald's (down $0.70 to $44.15, Charts) reported fourth-quarter results that surged from a year earlier and met analysts' per share earnings forecast. However, market participants took a "sell the news" reaction and sent shares lower.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 11 to 5 on volume of almost 1.33 billion shares. On the NASDAQ, advancers beat decliners 2 to 1 on volume of 1.94 billion shares.
copied from http://money.cnn.com
Among other stocks moving on quarterly results, Corning (up $2.13 to $20.97, Charts) surged 10 percent in active trading after reporting higher fourth-quarter sales and earnings that topped estimates. Corning also warned that first-quarter profit won't meet expectations.
Cell phone chip maker RF Micro Devices (up $0.92 to $7.80, Charts) reported better than expected earnings late Tuesday and issued a current-quarter forecast that is above analysts' projections. Shares gained 11 percent Wednesday.
Dow component AT&T (up $1.51 to $36.87, Charts) rallied on news that subsidiary Cingular Wireless posted sharply higher fourth-quarter profit.
On the down side, Advanced Micro Devices (down $1.49 to $16.02, Charts) reported a quarterly loss late Tuesday versus a profit a year earlier. The results were worse than analysts were expecting. The chip maker also issued first-quarter profit guidance that is short of forecasts.
On Wednesday morning, Dow component McDonald's (down $0.70 to $44.15, Charts) reported fourth-quarter results that surged from a year earlier and met analysts' per share earnings forecast. However, market participants took a "sell the news" reaction and sent shares lower.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 11 to 5 on volume of almost 1.33 billion shares. On the NASDAQ, advancers beat decliners 2 to 1 on volume of 1.94 billion shares.
Markets on the Rise!
by Jared Fruland
My investment decisions were on the ball, the Dow increased by a drastic 88 points, with the NASDAQ increasing 35 points, and the S&P increasing at 12 points. These increases can only be due to the President's State of the Union. Many of his points aimed at the increasing U.S. Economy, obviously the brokers listened, with today's market stats. If you haven't been active in the stock market by know, get in now!
My investment decisions were on the ball, the Dow increased by a drastic 88 points, with the NASDAQ increasing 35 points, and the S&P increasing at 12 points. These increases can only be due to the President's State of the Union. Many of his points aimed at the increasing U.S. Economy, obviously the brokers listened, with today's market stats. If you haven't been active in the stock market by know, get in now!
Tuesday
President Delivers State of the Union
by Jared Fruland
President George W. Bush, with Speaker of the House Pelosi, and Vice President Cheney. The President spoke of great advances in U.S. Economy, and also included that he will be briefing the nation on the state of the economy. Of course I will be their to report back about the president's actions and decisions. He said that inflation with unemployment has had drastic decreases. The employment has increased, and the deficit has been cut in half. His plan is now to decrease the deficit again and decrease dependence of foreign oil, while also providing health care to all citizens. Overall, the President's speech, according to NBC, was more somber than previous speeches, this is largely due to the new standings in congress. With the democrats in control, the President addressed more democratic issues like Immigration and Global Warming. The economy has the points to help prove the President's plan for economic improvement. The stock market has been recording record highs, in fact, the economy has become so strong, it was one of the leading reasons for starting The Economic Factor. The one thing we can still expect is a stronger economy for the U.S.
President George W. Bush, with Speaker of the House Pelosi, and Vice President Cheney. The President spoke of great advances in U.S. Economy, and also included that he will be briefing the nation on the state of the economy. Of course I will be their to report back about the president's actions and decisions. He said that inflation with unemployment has had drastic decreases. The employment has increased, and the deficit has been cut in half. His plan is now to decrease the deficit again and decrease dependence of foreign oil, while also providing health care to all citizens. Overall, the President's speech, according to NBC, was more somber than previous speeches, this is largely due to the new standings in congress. With the democrats in control, the President addressed more democratic issues like Immigration and Global Warming. The economy has the points to help prove the President's plan for economic improvement. The stock market has been recording record highs, in fact, the economy has become so strong, it was one of the leading reasons for starting The Economic Factor. The one thing we can still expect is a stronger economy for the U.S.
Welcome to the New Economic Factor
by Jared Fruland
I've decided to display my economic news in a new way, with a new template, better charts refreshed by yahoo, weekly polls, and up-to-date posts. I hope you enjoy the changes, please leave a compliment or comment. Thank You!
I've decided to display my economic news in a new way, with a new template, better charts refreshed by yahoo, weekly polls, and up-to-date posts. I hope you enjoy the changes, please leave a compliment or comment. Thank You!
National Debt? A Real Problem?
by Jared Fruland
As of 3:05 PM GMT the U.S. National Debt was at an astounding $8,680,657,258,410.93 and is at an average increase of $1.5 billion dollars a day. The average amount per person contributed to the U.S. debt is $28,860.22. This is brought up to day, due to the near President's State of the Union Address. When President Bush gives his State of the Union address tonight, don't expect accurate numbers on the budget. What you can count on is that the deficit is disastrous and the debt is piling up. So I advice anybody interested in the U.S. economy should be very alert to tonight's address.
As of 3:05 PM GMT the U.S. National Debt was at an astounding $8,680,657,258,410.93 and is at an average increase of $1.5 billion dollars a day. The average amount per person contributed to the U.S. debt is $28,860.22. This is brought up to day, due to the near President's State of the Union Address. When President Bush gives his State of the Union address tonight, don't expect accurate numbers on the budget. What you can count on is that the deficit is disastrous and the debt is piling up. So I advice anybody interested in the U.S. economy should be very alert to tonight's address.
Friday
15 Picks for 2007
by Jared Fruland (Information compiled from MSN:Money)
Most of the companies listed in this list have mostly been pulled from the rising Dow Industrial. Investors could not have foreseen the increasing numbers on the Dow. No doubts the Dow will continue to rise above speculation.
1. Fifth Third Bank
2. Bank of America
3. Citigroup
4. Eaton Vance
5. Mercury General
6. Pfizer
7. Merck
8. McDonald's
9. Sysco
10. Home Depot
11. Teleflex
12. Automatic Data Processing
13. Polaris Industries
14. Ken Kam
15. U.S. Global Investors
Most of the companies listed in this list have mostly been pulled from the rising Dow Industrial. Investors could not have foreseen the increasing numbers on the Dow. No doubts the Dow will continue to rise above speculation.
1. Fifth Third Bank
2. Bank of America
3. Citigroup
4. Eaton Vance
5. Mercury General
6. Pfizer
7. Merck
8. McDonald's
9. Sysco
10. Home Depot
11. Teleflex
12. Automatic Data Processing
13. Polaris Industries
14. Ken Kam
15. U.S. Global Investors
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