Nomura Holdings Shows Interest in Lehman
is reporting that Japan's Nomura Holdings is the latest potential suitor considering acquiring a stake in
Nomura Chief Executive Kenichi Watanabe said Lehman was one of several candidates, and that Nomura would decide whether to make an investment offer after confirming Lehman's business results.
There have been many rumblings about Lehman finding a partner, and we do think the possibility is high that this happens. The question is price, and we are not sure an attractive premium is in the cards. We would still avoid the shares at this point.
Discover Financial Services Tries to Buck the Trend
Discover Financial Services
may be an interesting stock to watch over the near term.
Discover is saying its consumer spending index hit its highest level so far this year. This may be an indication that the consumer may be starting to come back. The survey is composed of 15,000 adults with their spending habits as the focus. This is the second consecutive month the outlook brightened.
This news will hopefully start to carry over to the company's results as consumer spending can help the company sustain its recent price momentum. The stock is up 25% in the last seven weeks, even as the overall market has moved sideways. We are liking the move and have put the stock on our upgrade watch list. The company has a 1.46% dividend yield, based on Friday's closing stock price of $16.42.
Discover Financial Services is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.3 out of 5 stars.
Boeing Strike Is On
machinists walked out on strike Saturday after contract talks broke down.
This will be the machinists' second strike in as many contract negotiations with Boeing. The last one occurred in 2005 and lasted for 24 days. The machinists' role is to assemble Boeing's commercial planes and some key components. The company will halt assembly at this time. The main points of contention center around pay, outsourcing, retirement and health care benefits.
There are estimates that the company may lose $100 million per day in deferred revenue. We were hoping the strike could be avoided as we think the company has an opportunity to turns thing around, especially with oil prices dropping. Airline companies may get the confidence back to order more planes, but the strike news is a setback. We would stay on the sidelines for now. The company has a dividend yield of 2.54% -- based on last night's closing stock price of $62.89.
Boeing is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.4 out of 5 stars.
Is a Schnitzer Steel Short-Term Bounce Possible?
is a stock we were fortunate to remove back in July at much higher levels.
At the time, we felt that steel stocks were feeling like they had hit an exhaustive top and it seemed that good news was just not boosting shares further. The stock has retreated 30% in the short time since we removed the name from our "Recommended" list.
Investors looking to bottom fish in the stock may get an opportunity this week for a quick run, but it is far from a name that you can just sit with. We believe the stock will be better suited for shorter-term investors that can be nimble and disciplined. We think the long-term uptrend has major roadblocks, so focus on the short-term openings with Schnitzer Steel. It can be used as a good gauge for the entire steel sector, similar to
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.