Barack Obama’s economic team revealed some details of his tax plan today: As expected, it includes a bump in capital gains rates and payroll taxes for the top 1% of households. For his part, John McCain is talking tough about an “
Finally, some good news! My guest Tom Brown, a former top bank analyst, who now runs hedge-fund firm Second Curve Capital, argues that financial stocks bottomed in July. The banks have enough capital, Brown says, and core earnings potential remains intact
The most famous stock analyst in America, Oppenheimer’s Meredith Whitney, remains violently bearish about financial stocks. Our guest, Tom Brown of Second Curve Capital and Bankstocks.com, thinks she’s already missed the boat. Bank stocks bottomed on July
Old China hands have maintained for years that the country’s economy would stay strong through the Olympics. Well, now the Olympics are almost done, the stock market has crashed, and inflation is out of control. So is this the end?My guest Philip Pan, for
Cablevision has a new(ish) big stakeholder and things could get interesting as it is activist investor Harbinger Capital. According to a regulatory filing Harbinger now owns a combined 11 million shares in Cablevision through two funds as of June 30th, making it the 5th largest external stakeholder in the New York cable operator.
Harbinger, lest we forget, has been shoving around the media companies in which it has snapped up stakes to find to boost share prices, notably with New York Times and Media General earlier this year.
Harbinger will be joining Mario Gabelli (pictured left), of Gabelli & Co, which owns around 20 million Cablevision shares and has been very loudly pushing for the company to consider selling assets such as its cable networks. Gabelli wants Cablevision to use the funds from such an asset sale to buy back stock. Other big name Cablevision shareholders are ClearBridge Advisors (part of Legg Mason), T Rowe Price and London-based Marathon Asset Management.
Richard Greenfield of Pali Research, who brought the Harbinger filing to our attention, makes an interesting point that the top five stake holders now own 108 million of the total 295 million float. The Dolan family, who control the company, own around 72 million.
In Greenfield’s view:
This fact will help propel Cablevision shares if they begin to buy back shares in the fall.
Hedge fund Harbinger Capital Partners may be trying to raise its stake in Cleveland Cliffs Inc, but the iron-ore company has some protection in its home state of Ohio.
Cleveland Cliffs lacks many of the typical corporate takeover defenses, such as a poison pill or a staggered board of directors.
But since it is incorporated in the Buckeye State, Cleveland Cliffs has protection under a state statute that prohibits a party from acquiring more than 20 percent of a local company unless the transaction is approved by shareholders, according to research firm FactSet SharkRepellent. Tweny six other states have similiar statutes, the research firm said.
Harbinger, which owns about 15.6 percent of Cleveland Cliffs, said in a filing with the U.S. Securities and Exchange Commission that it is seeking shareholder approval to acquire a larger stake in the company.
Harbinger opposes the iron-ore company’s proposed takeover of Alpha Natural Resources. Harbinger contends that the $8.1 billion Alpha deal is not in the best interest of shareholders.
And who knows–Ohio may have more to help Cleveland Cliffs than just the 20 percent law. The state’s motto is “With God All Things Are Possible,” so any hedge funds that mess with Cleveland Cliffs may have to answer to a higher power. And the state rock song is “Hang on Sloopy,” which may inspire Cleveland Cliffs to hang on as its battles the hedge fund.
(PHOTO: Cleveland Cliffs’ corporate website)
Biotechnology company ImClone Systems Inc finally hired its defense team, bringing in JP Morgan Chase & Co to help it weigh an unsolicited takeover offer from Bristol-Myers Squibb Co, as well as a possible plan to separate into two companies.
ImClone called Bristol’s offer, which values ImClone at $5.2 billion, too low, but said it would review the proposal. Activist investor Carl Icahn, chairman of ImClone and a large shareholder of the company, has slammed the bid, saying it “greatly undervalues the company.”
Also up for debate is ImClone antibody IMC-11F8, which is now under development. If approved for sale, ImClone has said the antibody “might have a significant competitive effect on Erbitux,” and Bristol may have no rights to market that product. Bristol previously termed its offer for ImClone “full and fair” and said it believed it has rights to the follow-on drug to Erbitux, an ImClone cancer drug.
Bringing antibodies into a takeover battle is a new twist.
ImClone’s defense team of JP Morgan will battle Bristol’s team of heavyweights, which include Citigroup, Morgan Stanley and Credit Suisse.
Many China-watchers assume the country’s adoption of free-market capitalism will inevitably lead to political and social change. But that’s wishful thinking, says my guest Philip Pan, the Washington Post’s former Beijing bureau chief, and a fellow a
From Silicon Alley Insider, August 13, 2008:It seems like months since Yahoo ended its fight with Carl Icahn by agreeing to add a couple of his antagonists to the board. It has been months since Yahoo could have ended shareholder misery
Many forecasters say just wait until early 2009 and home prices finally will start to pick up.Not so fast says my guest Barry Ritholtz, CEO of Fusion IQ and financial blogger for The Big Picture.Home prices rocketed well above trend in the past five years
This has been an insane year for investors, and it’s barely half over. Our guest Barry Ritholtz, CEO of Fusion IQ, shares a few of the lessons he’s learned from painful experience:Ignore market rumorsP/E matters less than you thinkIgnore deteriorating fun
As the recent market rally continues, more and more analysts are calling the bottom (including, most notably, Jim Cramer). Our guest today thinks they’re hallucinating.Barry Ritholtz, CEO of Fusion IQ and editor of The Big Picture, thinks this is just the