Editor’s Note: Related tickers: Yahoo! Inc. (NASDAQ:YHOO), Intel Corporation (NASDAQ:INTC), Goldman Sachs Group, Inc. (NYSE:GS), The Coca-Cola Company (NYSE:KO), US Airways Group, Inc. (NYSE:LCC), MBIA Inc. (NYSE:MBI), AOL, Inc. (NYSE:AOL), Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ), Dell Inc. (NASDAQ:DELL), Radian Group Inc (NYSE:RDN)
Yahoo! Inc. (YHOO) Traders Forecast Big Moves to the Upside (SchaeffersResearch)
Given Yahoo! Inc. (NASDAQ:YHOO) steady trek higher over the past seven months, it’s no surprise that option players were betting on additional upside for the outperformer on Monday. Shorter-term bulls scooped up the stock’s May 30 calls for a volume-weighted average price (VWAP) of $0.09, while longer-term optimists picked up YHOO’s January 2015 35-strike calls for a VWAP of $1.13. The majority of the 4,476 and 10,003 contracts traded at the respective strikes crossed at the ask price, and open interest rose overnight, pointing to buy-to-open activity. By purchasing the deep out-of-the-money May 30 calls, traders will begin to profit with each step above $30.09 (strike price plus the VWAP) Yahoo! Inc. (NASDAQ:YHOO) takes through the close on Friday, May 17 — when back-month options expire. This breakeven mark represents expected upside of 25.9% from the stock’s current perch of $23.90. Meanwhile, breakeven for the further out-of-the-money LEAPS options is $36.13, or 51.2% above present levels. While moves of this magnitude may seem extreme, YHOO is no stranger to hefty price movements. In fact, the equity’s 60-day historical (realized) volatility currently rests at 22.31%.
Yahoo Beats Privacy Suit Over Subpoenas In 9th Circ. (Law360)
The Ninth Circuit on Monday upheld the dismissal of a proposed class action against Yahoo! Inc. (NASDAQ:YHOO) alleging the company illegally shared a user’s private information with a Georgia criminal grand jury, saying although subpoenas for the information allegedly weren’t valid, the company is immune anyway. Plaintiff Fayelynn Sams said Yahoo violated the Stored Communications Act by complying with the subpoena and disclosing some of her subscriber information to the government. She also said that even if the subpoenas were valid, Yahoo failed to comply with their…
Yahoo! Earnings Buzz (247WallSt)
A great deal of press coverage has been given to Yahoo! Inc. (NASDAQ:YHOO) earnings. As the nation’s largest portal, based on audience, the interest is understandable. Portals, which also include AOL, Inc. (NYSE:AOL) and Microsoft Corporation (NASDAQ:MSFT) MSN, have struggled to regain their positions in the online advertising world, where they were once the primary media for marketers. And the company’s new chief executive, Marissa Mayer, will be showing off the extent to which she has changed Yahoo!’s fortunes in a very short time.
Yahoo! Rating Increased to Outperform at Zacks (YHOO) (MideastTime)
Zacks upgraded shares of Yahoo! Inc. (NASDAQ:YHOO) from a neutral rating to an outperform rating in a research report sent to investors on Thursday morning, Stock Ratings Network.com reports. The firm currently has $29.00 price target on the stock. Zacks’ analyst wrote, “Yahoo! Inc. is one of the leading providers of web-based services and advertisements. Fourth-quarter earnings beat the Zacks Consensus Estimate. Yahoo’s search business faces extremely tough competition from Google and Microsoft’s ad platform is not generating enough yet. Also we remain concerned about the uncertainty surrounding the search business and deterioration of display ad revenue share but are encouraged by the refocusing of the company, as well as the many product upgrades and growth initiatives implemented, which are improving engagement on Yahoo properties. The company’s progress in the fast-growing mobile search segment is also encouraging. Therefore we are upgrading the shares from Neutral to Outperform.”
Intel Corporation (NASDAQ:INTC) Options Active Ahead of Earnings (SchaeffersResearch)
In the week following its last four earnings releases, Intel Corporation (NASDAQ:INTC) has trended lower. In fact, after its most recent turn in the earnings confessional, back in mid-January, the blue-chip tech concern fell 7.6% in the subsequent week. Nevertheless, options traders still prefer INTC calls over puts ahead of tonight’s earnings announcement. So far today, Intel Corporation has seen around 107,000 calls cross the tape — about four times the norm. For comparison, roughly 72,000 INTC puts have traded thus far.
Intel Corporation : Wind River to Present and Exhibit in Intelligent Systems Zone at DESIGN West (4-Traders)
Wind River®, a world leader in embedded and mobile software, will be presenting and exhibiting in the Intelligent Systems Zone at DESIGN West 2013 taking place April 22-25 in San Jose, California. The company will drive intelligent systems awareness and education through a series of activities to address the topic of the transforming embedded market. “The transformation of the embedded industry into a world of intelligent systems is revolutionizing many traditional industries, and is actually changing the design process itself for engineers, designers and developers,” said Santhosh Nair, general manager of the intelligent systems group at Wind River.
Intel Corporation (INTC): What Does The ‘Death Of The PC’ Mean For Its Business? (InsiderMonkey)
A lot of people are concerned with the impact of the declining PC market on PC manufacturers, including Hewlett-Packard Company (NYSE:HPQ), Dell Inc. (NASDAQ:DELL) and Lenovo. However, only a few are concerned with the impact on PC chip manufacturers like Intel Corporation (NASDAQ:INTC). Intel is the dominant force in making PC chips, with a PC market share of nearly 80%. Intel’s Core chips are used in nearly all the laptops from some of the biggest PC manufacturers. Total PC shipments in Q4 of 2012 fell about 5% to 90 million units, and analysts believe that this could be the end of the PC era. One of the biggest reasons for this is the tablet industry, which saw a 70% increase of unit shipments in the fourth quarter of 2012. However, some analysts believe that tablets should come under the category of Personal Computers, and if you include that tablets industry in the PC market, then the market is booming. Like the old desktop PCs started to fade away, the current lineup of PCs is also likely to decline, as tablets are the next PC or post-PC.
Goldman’s Profit Rises on Investment Banking (WSJ)
Goldman Sachs Group, Inc. (NYSE:GS) -2.37% posted higher profits for the first quarter, but the bank’s cautious tone sapped investors’ confidence for a strong 2013. First-quarter net income rose 7.2%, as revenue gains from the underwriting businesses overcame a drop in trading results. Goldman Sachs Group, Inc. (NYSE:GS) posted a profit of $2.26 billion, compared with a year-earlier profit of $2.11 billion. Earnings per share—reflecting the payment of preferred dividends—stood at $4.29 from $3.92. Net revenue, including net interest income, edged up 1.4% to $10.09 billion. Analysts polled by Thomson Reuters expected per-share earnings of $3.88 on revenue of $9.72 billion.
Goldman CFO: Still ‘very close’ to crisis (BostonHerald)
Goldman Sachs Group, Inc. (NYSE:GS) reported a strong first quarter, but analysts were more concerned about the bank’s future than the past three months. They peppered the chief financial officer with questions about impending regulations, and investors sent Goldman Sachs Group, Inc. (NYSE:GS)’s stock down even as other banks rose. By the numbers, it was a decent quarter. Profit rose 5 percent and revenue was up 1 percent. Both beat analysts’ expectations. Bond underwriting soared 69 percent as issuers rushed to take advantage of low interest rates and a hearty appetite for corporate debt among investors. CEO Lloyd Blankfein described the results as “generally solid.”
Coke posts 8% volume growth in India in Q1, 2013 (EconomicTimes)
Beverages major Coca Cola Company today said it has posted 8 per cent sales growth in volume terms in India for the first quarter ended March 29, 2013. The US-based company, which announced its global earnings for the first quarter, said brand Coca Cola grew by 30 per cent in India during the first quarter. “India sparkling beverage volume growth in the quarter was led by brand The Coca-Cola Company (NYSE:KO), up 30 per cent, and driven by strong integrated marketing campaigns and continued expansion of packaging choices to consumers,” the company said in a statement.
Coke to Sell Some Distribution Territory to Five Independent Bottlers (BevNet)
In its first major step to divest from company-owned bottling operations, The Coca-Cola Co., Inc. today announced that it will sell some of its distribution rights to five independent bottlers. While details of the agreements have not yet been finalized, Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company (NYSE:KO), hailed the plan as one that would accelerate “the transformation of our U.S. system in ways that will establish a clear path to achieve our 2020 Vision,” referring to the company’s goal of doubling system revenues in the next seven years.
Swire Coca-Cola USA Participates in New Partnership Model with The Coca-Cola Company (Irasia)
Swire Pacific announced today that Swire Coca-Cola USA, a subsidiary of Swire Beverages, is one of five US bottlers who have agreed in principle with The Coca-Cola Company to participate in the creation of a stronger US business model through the granting of new, expanded territories. It is expected that Swire Coca-Cola USA will participate, along with the other bottlers, in the further development of this business model. Under the arrangement announced today, Swire Coca-Cola USA will assume territories in Colorado including the Denver and Colorado Springs markets. These markets border Swire’s existing territories.
Coca-Cola’s Profit Comes in Above Expectations (TheEpochTimes)
The Coca-Cola Company (NYSE:KO)’s first-quarter results came in above expectations as the world’s biggest beverage maker saw global sales volume grow. The Atlanta-based company says it earned $1.75 billion, or 39 cents per share, for the period ended March 29. That’s down from $2.1 billion, or 45 cents per share, a year earlier. Not including one-time items such as restructuring charges, however, the company says it earned 46 cents per share. That’s better than the 45 cents per share analysts expected.
Radian (RDN), MBIA (MBI) Lower as Home Builder Sentiment Wanes (StreetInsider)
Radian Group Inc (NYSE:RDN) and MBIA Inc. (NYSE:MBI) are both seeing some notable downside today following new data in the homebuilding segment released earlier. The National Association of Home Builders (NAHB) sentiment index caem in at 42 for the month of March. The read is down from 44 reported the prior month and market expectations calling for a 45 reading. The index hasn’t been above 50 — the level between expansion and contraction — since April 2006 and March was the third month of declines. Single-family home sales expectations dropped from 47 to 45, but expectations over the next six-month time frame improved from 50 up to 53.
American Airlines files bankruptcy plan (BizJournals)
AMR Corp., the Fort Worth, Texas-based parent of American Airlines, filed its bankruptcy reorganization plan with the court on Monday. The plan brings the merger between that company and US Airways Group, Inc. (NYSE:LCC) another step closer to reality. The Fort Worth Star-Telegram reports the filing Monday evening outlines how AMR (OTC:AAMRQ) plans to divide its equity stake in the new company among shareholders, employees, creditors and labor unions. The filing also outlines the payments to AMR’s CEO Tom Horton, that U.S. Bankruptcy Judge Sean Lane earlier had declined to approve. Lane told the company they could include it in the plan for shareholder approval.
Non-union employees to get some stock in new American Airlines Group (DallasNews)
American Airlines and parent AMR have proposed that non-union employees get some stock in the new American Airlines Group when AMR emerges from bankruptcy and merges with US Airways Group, Inc. (NYSE:LCC). American’s senior vice president of people, Denise Lynn, outlined the company’s plans Monday to employees, saying the company was proposing the distribution in its bankruptcy plan of reorganization. “In recognition of the restructuring, in particular the changes to your retirement benefits, the company intends to include in its proposed Plan of Reorganization (POR) that American’s independent employees receive a distribution equal to 2.3 percent of the common stock issued under the POR to holders of unsecured claims against American,” Lynn wrote in letters to the employees.
