General Electric (GE) +13.61%
GE said profit at the GE Capital finance unit will decline to $8 billion this year, less than previously forecast, and to $5 billion in 2009. GE will take a charge to accelerate cost cutting and add to reserves. The company said it is diversifying funding for GE Capital, shrinking the portfolio, reducing leverage and focusing on the highest return businesses at the unit.
GE predicts 4Q profit to be at the low end of its previous forecast, but CFO Keith Sherin repeated GE’s goal to keep the $1.24 a share dividend in 2009 and protect its AA credit rating, the highest available.
Transocean Inc. (RIG) -4.27%
A Credit Suisse report release today raised the possibility of RIG being removed from the S&P 500 and the Russell 200 indices if the anticipated redomestication to Switzerland from the Cayman Islands is ratified by shareholders on December 8.
Credit Suisse estimated that the removal of RIG from both indices implies approximately 45.1 million shares are to be sold (14.2 percent of float and 5-7 days of recent trading volume), which would likely put near-term selling pressure on the stock.
The indices likely decided very shortly after the Grand Court rules on the matter December 16. ACE, which was removed from the Russell and S&P after it redomesticated to Switzerland from the Caymans this past summer, appears to be a likely model.
3M (MMM) -2.39%
Citigroup analyst downgraded shares of 3M today explaining that a strengthening dollar may hurt fourth quarter and 2009 profit. The U.S. dollar has gained 15 percent this year against the euro.
Lots of news today about corporations issuing bonds
- Hewlett-Packard to Sell Bonds to Finance EDS Purchase
- Citigroup, Wells Fargo, GE Capital Line Up for FDIC Debt Sales
- Caterpillar Sells $1.5 Billion Bonds in 3-Part Sale
Quick Hits
- Bill Gross Says Stocks Aren’t as Cheap as They Appear
- G.M. Ask for $18 Billion as It Tries to Avoid Collapse
- Fill out your application for the Federal Bailout Program
Peter Lazaroff, Junior Analyst
No comments:
Post a Comment