New York Times Hires Goldman to Sell Boston GlobeAccording to a Boston Globe report, struggling newspaper giant New York Times ( NYT) is planning to sell the Boston Globe with Goldman Sachs ( GS) pegged as the manager of the sale. The Globe cited two potential unnamed buyers for the report. It said that the New York Times will begin accepting bids within a few weeks.
CB Richard Ellis Provides Second-Quarter Guidance; Shares Rise on Hedge Fund InvestmentCommercial real estate giant CB Richard Ellis ( CBG) 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 Paulson Capital ( PLCC) ( PLCC). 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 ExpectationsAlcoholic beverage maker Brown-Forman ( BF.A) 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.