New York Times Hires Goldman to Sell Boston Globe
According to a Boston Globe report, struggling newspaper giant
New York Times
is planning to sell the
pegged as the manager of the sale. The
cited two potential unnamed buyers for the report. It said that the New York Times will begin accepting bids within a few weeks.
The New York Times has been struggling to come to labor agreements with
labor unions recently and said it needed to cut costs or risk shutting the newspaper. The
posted $50 million in operating losses last year and is expected to lose $85 million this year. New York Times shares fell 18 cents or 2.9% in early afternoon trading Wednesday.
Shares of New York Times are off 52-week highs of $17 a share. The stock has technical support in the $4 to $5 price area. If the shares can firm up, we see overhead resistance around the $9 price level. We do not currently rate this former dividend-paying stock, but we watch the shares of the newspaper giant very closely.
CB Richard Ellis Provides Second-Quarter Guidance; Shares Rise on Hedge Fund Investment
Commercial real estate giant
CB Richard Ellis
issued second-quarter profit guidance Wednesday for the first time in several quarters, and also announced that it sold 13.4 million shares to hedge fund
The Los Angeles-based company said it expects second-quarter adjusted net income to range between flat and 7 cents per share. On average, Wall Street analysts expect a profit of 7 cents per share. CB had previously declined to offer guidance for several quarters in a row, due to uncertain market conditions.
The share sale to Paulson is expected to net the company $100 million. CB also said it would price a $50 million public stock offering and $400 million in senior notes due 2017. The company plans to use the funds generated from the stock sales for general corporate purposes, and the proceeds from the senior notes to repay or repurchase its debt. CB Richard Ellis shares rose $1.03 or 12.6% in late morning trading Wednesday.
Shares of CB are way off 52-week highs of $21 a share. The stock has technical support in the $5 to $6 price area. If the stock can continue to gain momentum from this morning's financing initiatives, we see the next level of overhead resistance around the $11.50 to $13.00 price levels. We do not currently rate this non-dividend paying stock, but we do follow this commercial real estate play very closely.
Brown-Forman Fourth-Quarter Earnings Beat Expectations
Alcoholic beverage maker
on Wednesday reported fourth-quarter earnings that bested Wall Street analysts' forecasts. The Louisville, Ky., company, which makes Jack Daniels and Southern Comfort, reported fiscal fourth quarter profits of $79.6 million or 53 cents a share, down 19% from $98.7 million or 65 cents a share in the year-ago period.
Sales in the latest quarter fell 12% to $683.3 million, partially due to the company's distributors reducing their inventories. These results easily beat analyst estimates. On average, Wall Street analysts expected a profit of 49 cents per share on sales of $638 million.
Looking ahead, the company forecast full-year earnings to range from $2.60 to $3.00 per share. Brown-Forman shares rose $1.71, or +3.8%, in morning trading Wednesday.
We had removed shares of Brown-Forman from our "recommended" list on Aug.28 when the shares traded at $77.02. The company has a 2.54% dividend yield based on last night's closing stock price of $45.27. The stock has technical support in the $39 to $41 price area. If the shares can firm up, we see overhead resistance around the $53 price level. We would remain on the sidelines for now. Brown-Forman holds a Dividend.com DARS Rating of 3.2 out of 5 stars.
Ameriprise Financial Announces $900 Million Share Offering
said Tuesday that it will sell $900 million worth of common stock in a public offering. The Minneapolis-based company said it will use the funds generated from the offering for general corporate purposes. These purposes could include acquisitions, if such opportunities arise.
As of December 2008, Ameriprise operated a network of over 12,400 financial advisors that provide services such as retirement planning, wealth management, and estate transfers. Ameriprise shares fell $2.61 or 9.2% in morning trading Wednesday.
We have avoided shares of Ameriprise since our early June coverage began last year, when the stock was trading at $46. The company has a 2.4% dividend yield based on last night's closing stock price of $28.39. The stock has technical support in the $19 to $22 price area. If the shares can rebound from today's drop, we see overhead resistance around the $30 to $31 level. We would remain on the sidelines for now. Ameriprise holds a Dividend.com DARS Rating of 3.1 out of 5 stars.
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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.