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Speculative flyers: Delta (DAL) and US Airways (LCC)

Steven Halpern — 2008-08-05T11:30:00+00:00

Filed under: Newsletters, US Airways Group (LCC), Oil, Delta Air Lines (DAL), Stocks to Buy

"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.

In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).

"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation history.

"Most of the majors have declared bankruptcy on multiple occasions since that time. However, we've traded the airlines on a few occasions; we took some triple-digit percentage gains in the airlines back in 2005.

"The airlines' leverage to oil prices is well known. Expectations are so low, in fact, that several major air carriers actually managed to beat consensus expectations in the second quarter.

"And although sentiment is already at rock-bottom, there's a real basis for cautious optimism. First, if I'm right about oil, fuel costs won't rise appreciably in the third quarter. This huge headwind is dissipating.

"Meanwhile, the major carriers are finally taking real steps to address pathetic profitability. The most important step is capacity rationalization and restructuring. The air carriers are retiring older planes and permanently ending service for certain routes.

"The US airline industry has too many planes flying over too many routes; there just aren't enough passengers to make this model profitable. Reducing capacity lowers operating costs and brings service in line with passenger volumes.

"And anyone who's flown recently knows the major air carriers are all instituting extra fees and charges, including checked baggage fees and a few extra dollars for that Bloody Mary on your flight home from Las Vegas.

"Airlines are also replacing inefficient, decades-old airplanes with newer, more-fuel-efficient planes, such as the Boeing 787 Dreamliner. Finally, there's scope for further consolidation. US airlines will merge or be taken over, reducing the number of competitors and enhancing the surviving carriers' pricing power.

"My two favorite airlines for a trade are US Airways and Delta Air Lines. Delta reported a $1 billion loss in the second quarter, but that includes a $1.1 billion, noncash accounting charge known as goodwill impairment; if we net that out, Delta actually posted a small profit.

"Quite frankly, that's amazing given the more than 100% jump in fuel costs the carrier has experienced over the past year.

"Delta is aggressively cutting costs and reducing capacity. The company's debt is 2.42 times its equity; for almost any business, that would be considered pathetic except for the airlines.

"Delta has $1 billion in undrawn capacity on its credit lines and $3.3 billion in unrestricted cash; the company isn't going bankrupt any time soon.

"Delta is also in the process of merging with Northwest Airlines. In the company's most recent conference call, Delta raised its projected savings resulting from this merger considerably. I'm adding Delta to our speculative 'gushers' portfolio as a buy below 8. I see the potential for the stock to reach the mid-teens.

"Please be advised that buying airlines is extremely risky. You should only take this trade if you're willing to assume a far-higher-than-average risk and are ready to treat it as a trade, not an investment.

"For the even more adventurous, there's US Airways. Like Delta, you could argue that US Airways was actually profitable--or close to it--in the second quarter if we exclude noncash charges. US Airways will also benefit from lower fuel costs and sharply falling capacity.

"Just recently, in fact, the air carrier sharply increased its capacity reduction plans. It's a solid alternative to Delta for those willing to assume even more risk with a shot at even higher returns."

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Your money: McCain vs. Obama, protect your credit cards in crunch & gold medal millionaires - Today in Money 8/1

Allan Halprin — 2008-08-01T09:04:00+00:00

Filed under: Yahoo! (YHOO), General Motors (GM), Toyota Motor Corp. (TM), Money and Finance Today, Sun Microsystems (JAVA), US Airways Group (LCC), ImClone Systems (IMCL), IndyMac Bancorp (IMB), Martha Stewart Living Omnimedia (MSO)

In the News:

· Unemployment Rate Rises to 4-Year High at 5.7% as U.S. Loses 51,000 Jobs in July

· General Motors Posts a Whooping $15.5 Billion Loss

· Greenspan Says U.S. on Brink of Recession

· Shareholders Get Shot at Yahoo Board Today at Annual Meeting

· IndyMac to File for Chapter 7 Bankruptcy

· A Used Toyota Prius a Hot Commodity Right Now

· Sun Microsystems Profit Falls, Expands Buyback

· 44-Pound Fat Cat Latest Caught in the Foreclosure Crisis

· No Free Coffee on US Airways (Unless, of Course, You Insist)

Your Money: McCain vs. Obama
See where the presidential candidates stand on the major economic issues like gas prices, taxes, mortgage crisis, jobs, health crisis and more.
Your Money: McCain vs. Obama - CNNMoney.com

If Only Martha Stewart Was a Little More Patient
If they only had been more patient investors of ImClone Systems, Martha Stewart and others might have done just fine, and avoided jail time. In a strange twist, ImClone -- the biotechnology company whose stock was dumped just before bad news was announced about an experimental cancer drug -- has received a multibillion-dollar takeover bid pegged to the success of that very same drug.
Once Dumped, ImClone Soars - NYTimes.com

7 Tips to Protect Your Credit Cards From the Credit Crunch
Fear of defaults has banks slicing limits and hiking interest rates on cards. Here's how to stay under the radar.
Protect your credit cards from the crunch - Bankrate.com

Are Olympics Sponsorships Worth It?
For some, not anymore. High-profile Beijing Olympics sponsors Kodak, Lenovo, and J&J are pulling the plug on future Games. Beijing 2008 is likely to go down as the high-water mark of the Olympic sponsorship program. While the Games offer unique attractions to sponsors, multinationals are already looking more critically at whether the payback will be worth it for future Games.
Are Olympics Sponsorships Worth It? - BusinessWeek

7 Ways to Budget Without Ditching Your Friends
With a little planning, you can maintain your social life without breaking the bank.
Budget Without Ditching Your Friends - Investopedia.com

Campus Cribs: Better to Buy?
In some places, it's financially savvier to buy a place for your college-bound kid than pay for the dorms.
On The Money: Campus Cribs: Better to Buy? CNBC.com

Gold Medal Millionaires
For many past and present Olympic athletes, running a business can be just as challenging -- and rewarding -- as competing in the world's biggest sporting event. Meet the past and present Olympians who also run successful businesses.
Gold Medal Millionaires -- Inc.
In Pictures: Gold Medal Millionaires

Heinous Parents of the Stars
Dina Lohan, mom-ager to tabloid darling Lindsay and lesser known Ali, is just one example in a long, sordid history of American stage parenting. Take a look at MainStreet's roundup of other Hollywood nightmares including the Jackson's, Cyruses, Barrymore's, Archuletta's and Crawford's.
Heinous Parents of the Stars | MainStreet

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Investments that pay you every month, beware that new car smell & life after Paul for Newman's Own - Today in Money 7/23

Allan Halprin — 2008-07-23T08:57:00+00:00

Filed under: Yahoo! (YHOO), Pfizer (PFE), PepsiCo (PEP), McDonald's (MCD), AT and T (T), Money and Finance Today, Boeing Co (BA), Charles Schwab Corp (SCHW), Sara Lee Corp (SLE), Costco Wholesale (COST), US Airways Group (LCC), UAL Corp (UAUA), Crocs Inc (CROX)

In the News:

· Gas Prices Drop for 6th Straight Day

· Mortgage Rates Jump to Highest Level in a Year; 30-Year Fixed at 6.59%

· Wireless Growth Lifts AT&T Profit in 2Q

· McDonald's Has Another Great Quarter as It Tops Expectations

· Pfizer 2Q Profit More Than Doubles on International Sales

· Yahoo Earnings Don't Help Case for Independence as It Miss Estimates with a 18% Profit Decline

· Costco Warns, Hit By High Energy Costs

· Boeing Sees 2Q Profit Drop; Military Contract Cited

· FDIC Chair Says More Banks May Fail

· United Airlines Stock Jumps 65%, US Air 54% and Other Airlines Soar on Earnings News

· Pepsi Profit Rises 9% on Strong International Growth

· Whirlpool Reports 27% Profit Dip

· BMW Plans '09 Launch of Electric Car

· Schwab Founder Charles Schwab Stepping Down on Oct. 1

· Direct Mail Tries to Go Green. No, Really

· Rapper DMX Charged With Identity Theft

· Los Angeles Plans to Ban New Fast Food Outlets

· Los Angeles Bans Plastic Bagging in Stores

· Aaron Spelling's Widow Pays a Whooping $47M for L.A. Condo

Investments That Pay You Every Month
Expect a steady flow of cash from these three portfolios.
Investments That Pay You Every Month - Kiplinger.com

Recession Posts Greater Threat to Women
Women have become increasingly vulnerable to job losses during downturns, putting families at greater financial risk during these troubled times.
Women's jobs are more vulnerable in a downturn, report says - MarketWatch

How Whole Is Whole Grain?
Hundreds of bread and cereal brands claim to be "whole grain." But how many are "wholly" made from whole grain? A settlement between Sara Lee and the Center for Science in the Public Interest may lead to more accurate claims about whole grains on food labels.
How Whole Is Whole Grain? - BusinessWeek

The Price of Olympic Glory
Two athletes - one American, one Chinese - stand at the threshold of sports immortality next month in Beijing. The expense has been high, in money and family sacrifice. Winning will be the big payoff.
The price of Olympic glory - (1) - Money Magazine

Beware of That New Car Smell
Love that new-car smell? The bad news is dangers may lurk in new cars, children's seats and that smell can be harmful, and have been linked to long-term health problems. The good news is that consumers have a new guide to figure out which cars are safer.
Toxic Car Interiors - MarketWatch

Save on Food: Tips for Eating Local Produce
Roadside stands and farmer's markets can often provide fresher, cheaper food than the alternatives.
Save on Food: Tips for Eating Local Produce | MainStreet

Newman's Own: Preparing for Life After Paul
When brands are linked to iconic founders, outliving them is a tricky task. At Newman's Own, leaders are laying plans for the brand to reach the next generation.
Newman's Own after Paul - FORTUNE Small Business

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US Airways cutting movies, charging to sit in front

Carol Vinzant — 2008-07-10T14:50:00+00:00

Filed under: Bad news, Consumer experience, US Airways Group (LCC)

You've been enjoying yourself too flying US Airways flights, haven't you? No more frivolity. The US Airways experience will make the Chinatown bus look lush. US Airways Group (NASDAQ: LCC) announced these latest passenger torture methods: no movies, no curbside check-in at 34 airports -- and that's on top of recent plans to charge $2 for cokes or coffee. You'll pay extra to use some of your frequent flier rewards, an additional $15 for checked bags and $25 to book on the phone. And if you want a window or aisle seat in the front of coach -- 16% of coach -- it'll cost you $5 to $30 more per segment.

The stock is down about 5% today on these grim announcements and word that the airline is cutting 2,500 jobs (and perhaps on oil prices). It had already planned on cutting capacity, though it had positive news yesterday, with good scores for being on time. US Airways says the current new fees will bring in $250 to $300 to $400 million. I don't think price-conscious passengers are going to remain oblivious to the idea that an airline ticket is not the real price anymore. It'll be like renting a car -- you know that it's really going to cost you twice as much as the rate.

US Airways says it is cutting movie service because the 500-pound machines cost them $10 million in fuel and other costs. It'll keep the movies on flights to Hawaii and overseas. The real problem with the big airplane screens is that nobody is renting the headphones anymore. I don't remember the last time I watched a movie -- or even one of those schlocky sitcoms the airlines seem to love -- on a big airplane screen. We all want our own entertainment -- and bring it in the form of MP3 or DVD players. In an effort to appeal to the broadest audience, the industry has bored everyone. Reuters says that a cut in inflight movies -- if it goes further -- could hurt the entertainment industry, which makes roughly $240 million a year from airlines.

US Airways is already toying with back-of-seat screens. It's hard to imagine that the combined weight will be less than 500 pounds. More likely, US Airways has found that it will have to come up with entertainment that everyone wants -- even if that just means a wide choice. It is already dreaming up ways to charge you more to use the new system. Everyone wants the seat-back screens, but as CNN reported, we also want to be able to just use the screen with our own devices (which is what Singapore Airline does). At least they will be charging for something people actually want.

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Oil at $200 & 2-year recession, sales tax holidays & first billionaire athlete - Today in Money 7/10

Allan Halprin — 2008-07-10T09:04:00+00:00

Filed under: Wal-Mart (WMT), Money and Finance Today, Boeing Co (BA), Comcast Cl'A' (CMCSA), Verizon Communications (VZ), US Airways Group (LCC), Marriott Intl'A' (MAR), Dow Chemical (DOW)

In the News:

· Dow Chemical Buys 100-Year Old Rival Rohm & Haas in One of Year's Biggest Deals

· All U.S. Stock Markets Officially in a Bear Market Now After Yesterday's Drop

· Wal-Mart Raises Forecast on Strong June Sales

· Boeing Wins New Shot at Multi-Billion Air Force Job

· Marriott Quarterly Profit Drops 24%

· Foreclosure Filings Surge 53% in June

· Northwest Airlines to Cut 2,500 Jobs

· Verizon to Pay $21 Million to Settle Lawsuit Over Termination Fees

· U.S. Airways Scraps Films to Save $10 Million Annually in Fuel & Other Costs

Oil at $200 and a Two-Year Recession
The predictions of $200 oil have made it to the front page of The Wall S Journal. They have been hanging around in less prominent places, but now they gain some further legitimacy. The Journal predicts this would push gas prices to $6 a gallon. Oil at $200 would seize up the economy to the extent that virtually no industry would me immune. Fixing the problem could take a year, and, perhaps, much longer.
24/7 Wall St.: Oil At $200 And A Two-Year Recession

Sales Tax Holidays
The sales-tax holiday season is upon us. Here's where to shop to land the best deals.
Some States Extend Sales-Tax Holidays This Summer - SmartMoney

One Grandmother's Mortgage Nightmare
The nation's housing meltdown is disrupting lives and devastating families. One New York grandmother is trying to put the pieces back together.
Life after losing your home - CNNmoney

Women Don't Save Enough
Longer lives and lower pay mean women need to save more for retirement. But a study finds a widening of the financial gender gap.
Women not saving enough - study - CNNmoney

Tiger Woods, the First Billionaire Athlete?
Bum knee or not, we estimate Tiger Woods will become the world's first 10-figure athlete in 2011.
Tiger's Next Trophy: Billionaire - Forbes.comBum knee or not, we estimate Tiger Woods will become the world's first 10-figure athlete in 2011.

How to Get Cable Customer Service on Your Side
Customer service calls getting you steamed? MainStreet explains what you can do to get the attention you deserve.
How to Get Cable Customer Service On Your Side | MainStreet

Shhh! Museum Secrets
American museums will greet some 850 million visitors this year; that's more than the turnout for major-league sporting events and theme parks combined, according to the American Association of Museums. They increasingly can't handle the crowds and are especially concerned about having to evacuate visitors quickly in the event of an emergency. Before you visit your next museum you should read this first.
10 Things Museums Won't Tell You (- SmartMoney.com

Buffy Won't Die
The Vampire Slayer has been off the air for five years, but she lives on-profitably-in comic books and compilations. Is a total resurrection next?
Buffy the Vampire Slayer is Back - Portfolio.com In Pictures: Buffy Products

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Airlines ditching long distance flights to combat fuel prices

Michael Fowlkes — 2008-07-08T14:52:00+00:00

Filed under: International markets, Bad news, Products and services, Consumer experience, Competitive strategy, China, US Airways Group (LCC), UAL Corp (UAUA), Oil, Recession

Fuel prices seem to be the number one concern on just about everyone's mind lately, and it seems like things are not going to be getting better any time soon. As prices have risen to record levels, many of us have decided to cut back on our driving, especially on long trips in order to save a little on our fuel prices. Well, the airlines are no different, and there's an interesting report today in The Wall Street Journal showing how airlines are cutting back on long flights in order to save a little on fuel consumption.

It is a pretty nasty cycle we are seeing with the airlines. The higher fuel costs have led to higher tickets prices and extra fees. These higher prices have led to less air traffic, and that has led to an even greater need to find more ways to cover rising costs. Definitely a tough situation.

The new way they are starting to combat the high costs of flying is by cutting back, or postponing long international flights, in particular flights that are in excess of 12 hours.

A few years back, when oil was still "cheap," long distance flights seemed to be the next big thing for airlines. The math definitely made sense. By offering travelers the chance to fly non-stop to their final destinations, airlines were able to tack on anywhere up to an extra 20% on their tickets, and consumers were ready and able to absorb the extra costs in exchange for the luxury of not having to make connections, endure long waits in airports for their connections, and have to wonder if their luggage would make it on time. Well, times have changed, and consumers are tightening their belts. Now there is a shift to lower-priced tickets, and consumers are willing to endure a bit of hardship in order to save a few dollars.

We have to look at it from the airlines point of view as well. With fuel prices going up, the math on long distance flights is just not adding up anymore. For flights that are in excess of 15 hours, airplanes use more fuel per mile per customer, but the added costs are not proportionate with the additional cost of the tickets. A losing situation all around. If you consider that airlines are having a tough time breaking even on their shorter flights, you start to see just how hard they are getting hit on the longer flights that they have been offering.

The solution? Simple: cut the long distance flights. This is the trend we are seeing now, and probably one that will expand as time goes on.

Let's look at a couple examples of what we are talking about:

US Airways (NYSE: LCC) group gained approval last week to postpone the start of a 13 hour flight from Philadelphia to Beijing;
Northwest (NYSE: NWA) was given permission last week to suspend its seven times a week cargo flight between the U.S. and China;
Earlier this year United (NASDAQ: UAUA) was allowed to postpone flights from San-Fransisco to China;
Thai Airways International has decided to put an end to its 17-hour Bangkok-New York route, and reduce Bangkok-Los Angeles flights. This move will result in Thai selling its Airbus super-long-haul jetliners.

These are just a few examples, and there are more.

The bottom line is that the current energy situation is definitely reshaping the way everyone does business, and in the end, will influence the way you travel. While the long distance air flight segment is a small niche for travelers, it is yet another warning sign that things are getting serious, and air travel as you know it may be changed forever.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

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Five scary stories for Friday the 13th

Melly Alazraki — 2008-06-13T16:35:00+00:00

Filed under: Yahoo! (YHOO), Wal-Mart (WMT), Ford Motor (F), General Motors (GM), Exxon Mobil (XOM), Altria Group (MO), Anheuser-Busch Cos (BUD), Boeing Co (BA), ConocoPhillips (COP), Amer Intl Group (AIG), BP p.l.c. ADS (BP), US Airways Group (LCC), Lehman Br Holdings (LEH)

Gather around the campfire and let me tell you such scary stories Jason's mask would fail to impress you after that.

Of course, the theme that runs in the background of these scary stories is the state of the economy in the U.S., from the housing slump, inflation and soft labor markets to weak dollar, excessive government spending and increasing national debt load and trade gap.

1. Exxon Mobil and Oil

So scariest of all stories is oil. With prices reaching new records nearly daily, gas prices have also zoomed higher, crossing the $4 a gallon mark. Why, then, is Exxon Mobil (NYSE: XOM) exiting the retail gas business. To be sure, BP (NYSE: BP) and ConocoPhillips (NYSE: COP) have either indicated taking such measures or have taken them already. Apparently, gas prices haven't been rising fast enough to keep pace, causing margins to narrow and for cents-earned-per-gallon to be dismal.

One would then think it's a good move by Exxon and the other oil giants to get out of the retail gas business, but I have questions. First, it's alarming that companies with revenues in the hundreds of billions of dollar look for ways to make even more money (even if YTD XOM is down 6.4%). Second, and most important, what could it mean for the consumer? As Doug McIntyre suggested, would the price of gas at the pump increase even more after the sale to private owners than when it was sold under Exxon? Scary indeed.

2. Cars and Ford

Related to oil is, of course, cars. Car makers particularly have been the perfect example of the effects of high oil prices on industry, consumer choices and the labor market. Detroit has suffered from a slowdown long before it was felt throughout the U.S. with one of the worst housing market and workers being laid off by General Motors (NYSE: GM), Chrysler, and Ford Motor Co. (NYSE: F). Why then would Kirk Kerkorian choose to increase his stake in Ford and at such a premium too? Is it any wonder the tender is oversubscribed? What does he know that we don't? If the Big Three's state of affairs isn't scary, I don't know what is.

3. Airlines and U.S. Airways

And from one form of transportation to another. If Ford and GM look in a bad shape, the airlines look even worse, some probably closer to bankruptcy than anyone would like admit. The culprit? Oil. The result? Layoffs, price increases and ridiculous practices. At least the car companies have some restructuring plans already in place. The airlines? Other than reduce the weight on their current airplanes, all they can do is wait for Boeing's (NYSE: BA) new Dreamliner, which is supposedly more fuel efficient. Deliveries of the new jet will not occur before the third quarter of 2009.

It is no wonder U.S. Airways (NYSE: LCC), which may confuse some with today's stock jumping 10%, is actually down nearly 80% YTD. U.S. Airways announced Friday it will cut 1,700 jobs and charge passengers $15 to check their first bag, but that's not all. Other than reducing flights, it will also charge fliers $2 for soft drinks and water, $7 for alcoholic beverages and $25-50 for redeeming frequent flier miles. There are other measures the airline will take that would hurt consumers. I'm not even sure how much these measures could help some of the airlines, but I am sure sad times are ahead for some.

4. Retail and Wal-Mart

With the consumer accounting for nearly 70% of economic activity, retail sales have been closely watched. In May, sales figures surprised economists as the rebate checks worked better than expected. One major beneficiary was the world's biggest retailer, Wal-Mart Stores Inc. (NYSE: WMT). Now, have you seen the chart lately? Have you compared it to the S&P 500? Here, let me show you:

What's so scary about this chart you may ask? While not exactly a negative correlation to the broader stock market index, some parts of the chart come pretty amazingly close.
And why is it scary? Few reasons: One is that Wal-Mart has by now proven it is doing well in bad times. Given the stock has been climbing, up over 24% YTD, what does it mean for the market, the economy -- set for more declines? For the past three years Wal-Mart has traded in a $44-$50 range, today it came very close to breaking $60. Could it mean the economy would get even worse? And finally, if you're a Wal-Mart shareholder, what do you wish for? I'll leave others to answer that.

5. Other scary tidbits

Is Anheuser-Busch (NYSE: BUD) going the way of the Yahoo! (NASDAQ: YHOO)? Is BUD also trying to thwart a good offer for reasons not related to sound business rationale? Is an overblown ego going to ruin yet another sensible merger?
Have we seen the last of the financial turmoil? Will there be another Bear Stearns? Why do Lehman (NYSE: LEH), AIG (NYSE: AIG) and KeyCorp (NYSE: KEY) -- to name but a few -- insist on scaring us?
Can Altria (NYSE: MO)'s Phillip Morris really develop a smokeless cigarette? And how long before we find out the health implications of that one?

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5 stocks dad will love, water the new oil? & retirement home bargain cities - Today in Money 6/13

Allan Halprin — 2008-06-13T09:12:00+00:00

Filed under: Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Exxon Mobil (XOM), McDonald's (MCD), Diageo plc (DEO), Money and Finance Today, Best Buy (BBY), US Airways Group (LCC), AMR Corp (AMR), UAL Corp (UAUA), Burger King Hldgs (BKC)

In the News:

· Inflation Jumps at Highest Level in 6 Months as Consumer Prices Rise on Soaring Energy Costs

· Yahoo Ends Microsoft Talks, Hires Google

· Exxon Mobil to Exit Retail Gas Business, Selling Stations to Distributors

· U.S. Foreclosures Soar 48% in May

· US Airways Cuts Fleet, 1,700 Jobs

· Like American, United & US Airways Added Fees for Checked Luggage

· Tomatoes Back at Burger King, Not McDonald's

5 Stocks Dad Will Love
Forget ties. For Father's Day this year give him something of real value -- shares of some great companies that make products men love. They include O'Reilly Automotive, The Stanley Works, Diageo, Dick's Sporting Goods and Best Buy.
5 Stocks Dad Will Love - Kiplinger.com

Is Water the New Oil?
By 2030 nearly half of the world's population will inhabit areas with severe water stress. In the coming decades, as growing numbers of people live in urban areas and climate change makes some regions much more prone to drought, water -- or what many are calling "blue gold" --will become an increasingly scarce resource. Billionaire T. Boone Pickens thinks water is the new oil -- and he's betting $100 million that he's right. If he's right, T. Boone Pickens is a modern-day John D. Rockefeller. Pickens owns more water than any other individual in the U.S. and is looking to control even more.
There Will Be Water - BusinessWeek

Dream Retirement Home Bargain Cities
The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. Here are the six best markets for deals. They include Miami, Las Vegas, Phoenix, San Diego, Tampa and Denver.
6 real estate bargains - FORTUNE
Also: Housing Prices Will Get Worst in Hard Hit Cities

'Please, I Need Money. Can You Help Me?'
In these tough times, friends may need financial assistance. When should you say yes and when should you walk away?
What to do when you're asked for financial help - Bankrate.com

One Family: In Search of a Simpler Life
Five years ago, Kathy & Josh Gunns ditched the corporate world for the family farm. They love their new life, but did it simplify their finances? Not by a long shot.
One family: In search of a simpler life - Money Magazine

World's Most Powerful Tween Stars
These tween stars earned the most money - and the most buzz - over the last year. Topping the list is 'Hannah Montana' herself Miley Cyrus followed by 'Harry Potter' Daniel Radcliffe, the Jonas Brothers, Zac Efron and Ashley Tisdale.
The World's Most Powerful Tween Stars - Forbes.com

World's Most Powerful Actors
According to Forbes' Johnny Depp is the most powerful actor in the world today. He tops Brad Pitt, Will Smith, Jerry Seinfeld and Bruce Willis.
In Pictures: The World's Most Powerful Actors - Forbes.com

World's Most Powerful Actresses
According to Forbes' Angelina Joie is the most powerful actress in the world today. She tops Cameron Diaz, Jennifer Aniston, Keira Knightly and Jennifer Lopez.
In Pictures: The World's Most Powerful Actresses - Forbes.com

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Pre-market movers (LCC) (LEH)

Douglas McIntyre — 2008-06-13T08:06:00+00:00

Filed under: Before the bell, US Airways Group (LCC), Lehman Br Holdings (LEH)

US Air (NYSE:LCC) is up about 5% on a modest recovery from yesterday's sell-off.

Lehman (NYSE:LEH) is up about 2% after several days of selling.

Finisair (NASDAQ:FNSR) is down about 10% after announcing earnings.

KayCorp (NYSE:KEY) is down about 3% after saying it will need to raise $1.5 billion.

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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Before the bell: Futures edge lower ahead of CPI

Melly Alazraki — 2008-06-13T07:46:00+00:00

Filed under: Before the bell, Earnings reports, Forecasts, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Coca-Cola (KO), Market matters, US Airways Group (LCC), Economic data, Housing

U.S. stock futures were mixed to lower early Friday morning as investors awaited data on inflation. News about companies cutting workforce and Yahoo!'s failed talks with Microsoft also soured the mood.

On Thursday, U.S. stocks closed with gains following a surprisingly strong retail sales, but the gains were tempered as the day went on due to rising oil prices and the Yahoo! announcement about the failed Microsoft talks.The Dow industrials ended 57 points, or 0.48%, higher, the S&P 500 rose 4 points, or 0.33%, and the Nasdaq Composite rose 10 points, or 0.43%.

What may yet change the atmosphere on Wall Street is the Consumer Price Index is scheduled for release at 8:30 a.m. EDT. Economists surveyed by Briefing.com expect CPI to show an increase of 0.5% in May following a 0.2% rise in April. Core CPI, which excludes the volatile food and energy prices, is expected to have risen 0.2% in May, after it rose 0.1% the month before.

At 10:00 a.m., the preliminary University of Michigan consumer confidence gauge for June is also due.

Meanwhile, foreclosures data was already released and the number of U.S. homeowners forced into foreclosure further last month, up nearly 50% compared with a year earlier,and up 7% from April, according to RealtyTrac Inc..

The main corporate headline this morning no doubt has to do with Yahoo! (NASDAQ: YHOO). The internet portal said talks with Microsoft Corp. (NASDAQ: MSFT) have ended and announced late Thursday an online ad partnership with Google Inc. (NASDAQ: GOOG), which could be worth $800 million in revenue. Yahoo said it believes the ad deal would be better than selling its search business to Microsoft, but some are concerned anti-trust issues would derail that deal too. Yahoo shares sank 10% on Thursday.

Also US Airways (NYSE: LCC) said that it's cutting capacity on routes by up to 8%, increasing fees and shedding 1,700 employees. LCC shares closed down nearly 16%.

And while we've grown accustomed to problems at automakers and airlines, as well as the occasional retailer, arising from the economic slowdown, it seems that even Coca Cola (NYSE: KO) is not immune. It may be active as Coca Cola Hellenic Bottling (NYSE: CCH) warned over 2008 earnings, citing economic conditions in Italy, Ukraine and Romania, adverse weather in Central Europe, rising plastic prices and a strike in Greece.

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Short sellers bet against an American icon: GE

Douglas McIntyre — 2008-06-06T10:00:00+00:00

Filed under: General Electric (GE), US Airways Group (LCC), United Technologies (UTX)

How the mighty have fallen, at least in the stock market. GE (NYSE: GE) trades near a 52-week low at $31.

Now, short sellers have added insult to injury. The short interest in GE has moved up 11 million to 68.7 million between May 15 and May 30. That percent increase is almost as high as the jump in the short interest at US Air (NYSE: LCC).

The fact that so many shares are bet that GE will fall further is extraordinary. The company still holds one of the best credit ratings of any corporation in the US. Its infrastructure business, the firm's largest division, continues to do remarkably well.

But investors are assuming that GE's industrial, medical and financial operations could have more bad quarters ahead of them.

Shares in rival conglomerate United Technologies (NYSE: UTX) have far outperformed GE during the last year.

That says a mouthful.

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

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Before the bell: CAL, DAL, LCC, LTD, RIMM, ETFC, BA

Melly Alazraki — 2008-06-05T08:25:00+00:00

Filed under: Before the bell, Apple Inc (AAPL), Boeing Co (BA), Research in Motion (RIMM), US Airways Group (LCC), Limited Brands (LTD), Delta Air Lines (DAL)

Before the bell: Futures up on oil, Verizon's possible deal, retail sales

Starting with an aggregate of recent airlines news:

Continental Airlines (NYSE: CAL) said it would cut 3,000 of its 45,000 jobs, about 6.5%, and cut capacity 11% in the fourth quarter. The company will eliminate 67 planes and the company's chief executive and president say they will not take a salary for the rest of this year and will decline bonuses.

Delta Airlines (NYSE: DAL) May traffic rose 4.2% from the year-earlier month to 10.51 billion revenue passenger miles. Delta's May capacity increased 1.5% to 12.67 billion available seat miles. Load factor, or the percentage of seats filled with passengers, in May rose to 82.9% from 80.9%.

US Airways Group Inc. (NYSE: LCC) said its May mainline traffic rose 0.6% to 5.39 billion revenue passenger miles from last year. May mainline capacity was flat at about 6.54 billion available seat miles. Mainline load factor in May rose to 82.3% from 81.9% a year ago. It also said Wednesday it is cutting up to 1,100 more jobs, about 3% of its workforce.

Limited Brands Inc. (NYSE: LTD) May same-store sales fell 6%. Analysts, on average, had expected same-store sales to fall 5.5%, according to Thomson Reuters.

E*Trade Financial Corp. (NASDAQ: ETFC) is adding a mobile application -- the first of its kind -- to Research in Motion's (NASDAQ: RIMM) BlackBerry, giving its account holders the ability to see real-time stock quotes and trade on their phones. Again we see the BlackBerry being considered as a more business application, even Apple (NASDAQ: AAPL)'s iPhone tries to be considered as such as well.

Boeing (NYSE: BA) said it received an order for three 737-900ER jets from the Romanian low-cost carrier Blue Air. The order is list-priced at $238.5 million.

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$8 Gas, tax rebate questions answered & ATM identity theft soars - Today in Money 5/30

Allan Halprin — 2008-05-30T09:07:00+00:00

Filed under: Dell (DELL), Money and Finance Today, Tiffany and Co (TIF), US Airways Group (LCC), UAL Corp (UAUA), Bear Stearns Cos (BSC)

In the News:

· Personal Income & Spending Growth Slows in April

· Dell Shares Spike on Strong Earnings

· United-US Airways Merger Talks Suspended

· Tiffany Profit Rises 19%, Tops Estimates

· Bear Stearns Shareholders OK JPMorgan Buyout

· UK Airline Silverjet Grounds Operations

· J.Crew Stock Plunges on Weak Outlook

· Consumers Pick Home Over Flying Because of All the Hassles

· Slower Cellphone Growth in US Could Bring Good Deals

· 'Smiling Bob' May Be on Way Out as Maker of Male Sexual Products Looks for New Identity

$8-a-Gallon Gas
Americans should be celebrating rather than shuddering over the arrival of $4-a-gallon gasoline. We lived on cheap gas too long, failed to innovate and now face the consequences of competing for a finite resource amid fast-expanding global demand. Here are eight reasons higher prices will do us a world of good.
Eight reasons you'll rejoice when we hit $8-a-gallon gasoline - MarketWatch

Answers to All Your Tax Rebate Questions
Tell 200 million taxpayers that they'll be getting a share of $130 billion in tax rebates and you're sure to bring smiles to a lot of faces. You'll also prompt many quizzical looks ... and an avalanche of questions. Now one month after the rebates started going out there are still many questions people have. Kiplinger answers over 20 of the most common questions.
Answers to ALL Your Tax Rebate Questions - Kiplinger.com

Aggressive Medical Care Can Lead to More Pain With No Gain
For many consumers, good health care means seeing as many specialists as possible. It may also mean undergoing rounds of tests and, if a serious illness is diagnosed, prolonged hospital stays and extensive treatment. Though the idea that more health care is better seems to make sense, recent research has shown that none of the above necessarily helps you live better or longer.
Aggressive medical care: Consumer Reports
Top 10 Most Aggressive & Most Conservative Medical Centers in America

Are ATMs Becoming Automated Theft Machines?
Thieves are turning ATMs into a favorite fishing hole for that prize catch: your most sensitive banking information.
ATMs play bigger role in identity theft - Bankrate.com

Never Pay Retail Again
As Americans aim to curtail their spending, more retailers are cutting deals to reel in customers. Comparison shopping, haggling and swapping discount codes are all becoming mainstream marks of savvy shoppers. And retailers are playing along.
In tough times, retailers deal out the discounts - CNNmoney

Easing Costly Commutes
Here's a look at what companies are doing to help employees offset rising gas costs.
Company Programs Help Employees Save on Gas (- SmartMoney.com

The Lowdown on Libor
What you need to know about the global interest rate benchmark, and how it can affect your mortgage and credit.
The Lowdown on Libor - BusinessWeek

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Newspaper wrap-up: United Airlines puts US Airways on hold, talks to Continental

Laurie Pasternack — 2008-05-30T08:00:00+00:00

Filed under: Newspapers, Magazines, Apple Inc (AAPL), Chesapeake Energy (CHK), US Airways Group (LCC), Contl Airlines'B' (CAL), UAL Corp (UAUA), General Dynamics Corp (GD), Northrop Grumman (NOC)

MAJOR PAPERS:

Merger talks between UAL Corporation's (NASDAQ: UAUA) United Airlines and US Airways Group Inc (NYSE: LCC) have been put off for now, the Wall Street Journal reported. United is reportedly close to an alliance with Continental Airlines Inc (NYSE: CAL).
Harris Corporation (NYSE: HRS) is for sale and the company has begun to hear from interested parties, the Wall Street Journal also reported. Harris is looking for $75 to $80 per share. Speculation about the bidders includes General Dynamics Corporation (NYSE: GD) and Northrop Grumman Corporation (NYSE: NOC).

OTHER PAPERS:

The Charleston Gazette reported that Chesapeake Energy Corporation (NYSE: CHK) has decided not to build its Eastern Division headquarters in Charleston, West Virginia in the wake of a West Virginia Supreme Court ruling on May 22.

WEB SITES:

AppleInsider reported that Apple Inc (NASDAQ: AAPL) is expected to announce a back-to-school deal soon that will encourage students to buy new Macs by offering some of the largest incentives in the history of the company.

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Before the bell: Dell, oil help futures rise

Melly Alazraki — 2008-05-30T07:41:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Dell (DELL), Market matters, Tiffany and Co (TIF), US Airways Group (LCC), Contl Airlines'B' (CAL), UAL Corp (UAUA), Economic data, Oil

Stock futures were higher early Friday morning as oil futures continued to drop and Dell reported surprising strong earnings. (Read the full transcript of the conference call that followed the earnings announcement.)

Some upcoming economic readings about personal income might affect the Street's mood yet, but as long as oil prices remain at around $125 a barrel or go even lower, investors may feel more positive on the day.

If last week stocks witnessed one sharp-drop session after another, this week stocks have been more consistent on their way up and on Thursday U.S. stocks rose for the third session in a row due to a big drop in crude-oil futures. The Dow industrials rose 52 points, or 0.41%, the S&P 500 added 7 points, or 0.53%, and the Nasdaq Composite rose 21 points, or 0.87%.

On the economic calendar today several releases:

At 8:30 a.m. EDT April Personal Income and spending is due. While not perfect, personal income is a decent indicator of future consumer demand. Once personal income starts to stagnate, meaning inflation has caught up with income growth, this is another indication of a recession.
A price index is included in the income report. The personal-consumption expenditures is often considered to be the Federal Reserve's preferred inflation gauge.
A little after the open, May Chicago PMI, a regional manufacturing survey, is due out.
Finally, at 10:00 a.m., a revised reading on consumer sentiment from the University of Michigan for May will also be released.

On the corporate side, Dell (NASDAQ: DELL) is the big surprise. Dell shares jumped 10% in premarket trading after the computer maker reported Thursday after the close a 4% rise in quarterly profit and a 19% revenue growth. The solid first-quarter results beat Wall Street expectations for first-quarter sales and profit.

After financial media got so excited about their executive meeting, UAL Corp. (NYSE: UAUA) United Airlines and UA Airways (NYSE: LCC) has ended merger talks, according to published reports as United is close to an alliance agreement with Continental Airlines (NYSE: CAL).

Also, Tiffany & Co. (NYSE: TIF) reported results Friday morning. TIF shares are up over 5.7% in premarket trading after the jeweler said that strong growth in Asia-Pacific and European markets helped its first-quarter profits rise 19%, beating analysts' expectations. The company warned that it doesn't expect an improvement in the U.S. until later this year.

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Before the bell: BSC, UAUA, YHOO, AAPL, TIVO, PFE

Melly Alazraki — 2008-05-29T08:30:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Dell (DELL), Pfizer (PFE), JPMorgan Chase (JPM), US Airways Group (LCC), UAL Corp (UAUA), Bear Stearns Cos (BSC)

Before the bell: Futures mixed ahead of GDP; after COST, SHLD reporting

Bear Stearns (NYSE: BSC) shareholders are due to approve the buyout by JPMorgan Chase (NYSE: JPM) today, marking what many feel as an end of an era as the 85-year-old company collapsed due to the subprime mortgage crisis.

The chief executives of UAL Corp. (NASDAQ: UAUA) United Airlines and US Airways (NYSE: LCC) are set to meet today to discuss a possible deal despite concerns that threaten the deal, according to two people briefed on the discussions, the AP reported. Stocks of both airlines are up over 2% in premarket trading.

In other deal news, Yahoo (NASDAQ: YHOO) CEO Jerry Yang said that Yahoo is not a company under siege and that he is still waiting for a clearer proposal from Microsoft Corp. (NASDAQ: MSFT) about a possible partnership between the two firms. He said said that Yahoo "did not walk away from the proposal - Microsoft did. We were willing to do the deal on the right terms."

After the bell Thursday, computer maker Dell (NASDAQ: DELL) is due to report results, with analysts forecasting a narrow decline in earnings.

TiVo (NASDAQ: TIVO) shares aren't moving much despite the digital video recorder reporting Wednesday after the close that its net income more than quadrupled in the first quarter to $3.6 million, or 4 cents per share, beating estimate of a loss of 1 cent per share. TiVo said it expects to return to a loss in the current quarter.

Pfizer Inc. (NYSE: PFE) is trying to do some damage control following a warning from the FDA about its quit-smoking drug Chantix and its side effects which were linked to suicides, seizures, and traffic accidents. The drugmaker said it will run newspaper ads and send letters to doctors to alleviate concerns about the drug.

And yet another agreement for the iPhone. Apple Inc. (NASDAQ: AAPL) will offer its iPhone handset in Hong Kong and Macau this year to subscribers of Hutchison Telecommunications International Ltd.

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Newspaper wrap-up: Heinz expected to raise earnings, sales projections

Laurie Pasternack — 2008-05-29T08:00:00+00:00

Filed under: Newspapers, Magazines, US Airways Group (LCC), UAL Corp (UAUA), Barclays plc ADS (BCS)

MAJOR PAPERS:

H.J. Heinz Co. (NYSE: HNZ) is today expected to increase its sales and profit projections for the next two years, as it reports results of its fiscal year ended April 30. The Wall Street Journal reported that sales are to grow 6% or higher from 4%, while earnings per share growth for the next two years is projected to grow between 8% and 11% from the earlier projection of 7% to 9%.
It appears that Vistaprint Limited (NASDAQ: VPRT), a graphic design services and printed products company, counts on referral fees from pop up rewards programs on it website for a certain amount of its revenue and profit and also relies on the referral of its customers to outside firms offering rewards programs, which turns out to be a monthly fee for services such as discounts on movies and amusement parks, according to the Wall Street Journal's "Heard on the Street". Some believe the stock, whose shares have plummeted over concerns of slowing revenue and slimmer gross margins, may be trading too high for its own good.
According to people familiar with their plans, the Financial Times reported that the CEOs of UAL Corporation's (NASDAQ: UAUA) United Airlines and US Airways Group (NYSE: LCC) will today meet to discuss the carriers' potential merger agreement.

OTHER PAPERS:

The Independent reported that for the second time this month, Barclays Plc (NYSE: BCS) revised lower its calculation of analysts' consensus for its full-year profit, cutting its 2008 figure by nearly 8% to GBP5.876B pre-tax; Barclays cut the calculation 15% two weeks ago.

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Pre-market movers (LCC) (UAUA) (SHLD)

Douglas McIntyre — 2008-05-29T07:59:00+00:00

Filed under: Before the bell, Sears Holdings (SHLD), US Airways Group (LCC), UAL Corp (UAUA)

US Airways (NYSE:LCC) is up 5% on rumors of merger talks with United (NASDAQ:UAUA).

Dress Barn (NASDAQ:DBRN) is up about 7% on good earnings.

Evergreen Solar (NASDAQ:ESLR) is off 6% on a downgrade by Merrill.

Sears Holdings (NASDAQ:SHLD) is down 5% after reporting a poor quarter.

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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Top transportation stocks, car repo rates soaring & 12 most thriving cities - Today in Money 5/28

Allan Halprin — 2008-05-28T08:48:00+00:00

Filed under: Microsoft (MSFT), Yahoo! (YHOO), General Electric (GE), Exxon Mobil (XOM), Sony Corp ADR (SNE), Money and Finance Today, United Parcel'B' (UPS), US Airways Group (LCC), UAL Corp (UAUA), JetBlue Airways (JBLU), Burlington Northern Santa Fe (BNI)

In the News:

· Durable Goods Orders Fall Less-Than-Expected 0.5% in April

· As Gas Prices Surge, Americans Reduce Driving By Largest Amount Ever

· JetBlue Plans to Significantly Slow Growth; Delays Plane Order

· Consumer Confidence Hits 16-Year Low

· GE Eyes World's Next Big Worry: Water

· Soaring Gas Prices May Have Peaked Over Memorial Day Weekend

· Housing Issues Scarier Than High Oil Prices

· Microsoft-Yahoo Deal Imminent?

· Exxon Mobil Braces For Showdown With Rockefellers

· United-U.S. Air Talks Appear to Have Fallen Apart

· Sony Sees End to Cable Boxes

· Home Prices Post Sharpest Decline in 2 Decades

· BMW Tops Annual Automotive Quality Survey

· Who Is Getting Rich From Soaring Food Prices?

5 Transportation Stocks Ready to Roll
These five transportation stocks poised to ride out the domestic doldrums. They include JB Hunt, UPS, Burlington Northern Santa Fe, DryShips and Expeditors Int'l of Washington.
Five Transportation Stocks Ready to Roll - SmartMoney

Making a Good Living, But Still Feeling Strapped
Consumers are feeling worse about their personal finances and prospects - far worse than government statistics about the economy would indicate.
Making a good living, but still feeling strapped - CNNmoney

You Think Flying Is Bad Now...
Something has to give as airlines adjust to $130 oil and brace for a record yearly loss. Not all of the majors will survive. Analysts say liquidations could well leave an industry consisting of two dominant carriers, most likely the combined Delta-Northwest and perhaps a combined American-Continental, along with a couple of discount players like Southwest. This consolidation will come with a cost: That means fewer routes, fewer flights, and even more crowded planes. The era of cheap fares will end, too. Prices will rise, and airlines will become even more creative in how they set fares. Airlines will take other steps to wring more cash out of passengers.
You Think Flying Is Bad Now.. - BusinessWeek

Getting Squeezed By Credit Card Companies
Card issuers use all sorts of tactics to wrestle every penny out of customers. Here's what you need to know.
Drowning in debt: Deceptive credit card practices - CNNmoney

Car Repo Rates Are Soaring
It's not just homes that are being taken away these days -- cars are also being repossessed at startling rates. Last year over a million cars were hauled away by repo men, and '08 could be worse. But could it benefit you?
Car repo rates are soaring -Bankrate.com

12 Most-Thriving Cities in the World
You can see it in their stats and in their cityscapes: These 12 Fast Cities around the globe are thriving. Expect to see big things in the coming years from Beijing, Hyderabad, Mexico City, Seattle, Orlando, Kigali, Calgary, Kansas City, Barcelona, Moscow, Doha and Abu Dhabi.
Best Cities for Innovation | Fast Company Interactive Map: 12 Cities on the Verge

20 Hottest Young Royals
They're all young, rich and famous. But who's got the most international influence? Prince William and Prince Harry of England top the list followed by Princess Anne's daughter Zara Phillips, Prince Andrew and Fergie's daughter, Princess Beatrice and Grace Kelly's granddaughter Charlotte Casiraghi.
The 20 Hottest Young Royals - Forbes.com In Pictures: Hottest Royals

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Pre-market movers (UAUA) (LCC) (JBLU)

Douglas McIntyre — 2008-05-28T07:52:00+00:00

Filed under: Before the bell, US Airways Group (LCC), UAL Corp (UAUA), JetBlue Airways (JBLU)

United (NASDAQ: UAUA) is up 4% on news that the company is backing off merger talks with US Air (NYSE: LCC), which is up 3%.

JetBlue (NASDAQ:JBLU) is off 5% on news that it will delay delivery of new planes and raise money.

Shanda Interactive (NASDAQ:SNDA) is off 2% on weaker than expected earnings.

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

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

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