Archive for March 31st, 2010
Shares of Borders Group, Inc. (NYSE: BGP) surged in after hours trading after the book seller reported that 4th quarter profits more than doubled and that it repaid a $42.5 million loan from the company’s largest investor, William Ackman’s investment firm Pershing Square. Benzinga reported this news a full hour before it was known to the rest of the public. If you bought the stock when we reported it, you had the opportunity to make approximately 30% on your money.
Borders Group had until Thursday to repay the loan and at least one analyst had voiced a concern over whether or not the company would be able to do so.
Borders Group reported 4th quarter earnings of $59.9 million, or 91 cents per share, up from $29.6 million, or 49 cents per share, a year earlier.
The current quarter’s results included an income tax benefit of $30.1 million, while last year’s quarter included goodwill impairment expenses of $40.3 million.
Borders Group also announced that it entered into a new, $700 million credit agreement. The new, $700 million senior secured asset-based credit facility matures in March 2014 and replaces the company’s existing revolving credit agreement, which would have matured in July 2011. Banc of America Securities (NYSE: BAC), Wells Fargo Retail Finance (NYSE: WFC), J.P. Morgan Securities Inc. (NYSE: JPM) and GE Capital Markets, Inc. acted as joint lead arrangers and book runners.
However, the news wasn’t all good, as Borders Group reported 4th quarter revenue fell 13% to $946.5 million from $1.09 billion, a year earlier. Same store sales dropped 14% at Borders bookstores and 8.5% at Waldenbooks.
Shares of Borders Group were up more than 33% in after hours trading, at $2.30 as of 7:22 PM.
Geneva – “The International Air Transport Association (IATA) announced that February 2010 international scheduled air traffic showed continued strengthening of demand. Compared to February 2009, passenger demand was up 9.5%, while cargo demand grew 26.5% (see chart above).
These are strong gains, but it must be noted that February 2009 marked the bottom of the cycle for passenger traffic during the global economic recession. Passenger demand must recover by a further 1.4% to return to pre-crisis levels. Cargo hit bottom in December 2008, with little improvement realized by February 2009. Cargo traffic, which plunged much further than passenger demand, has a further 3% to recover in order to return to pre-crisis levels.
“We are moving in the right direction. In two to three months, the industry should be back to pre-recession traffic levels. This is still not a full recovery. The task ahead is to adjust to two years of lost growth,” said Giovanni Bisignani, IATA’s Director General and CEO.
The highlight for February was improved load factors which stood at 75.5%. Considering that February is traditionally the weakest month for travel, and if seasonally adjusted, this translates to an all-time record February load factor of 79.3%.”
Mastermyne Offers 40 Million shares At A$1/Share In IPO
CNBC Fast Money’s Guy Adami recommended a short position in Caterpillar (NYSE: CAT) back in February. He thought that Caterpillar (CAT) reached its top, but to Guy Adami’s surprise this stock continued to outperform. CAT jumped approximately 12% since that call.
Guy Adami admitted he was wrong to bet against the momentum, but added that he is not a buyer at this level. At these prices he would be taking profits.
Caterpillar (CAT) fell 0.49% today and closed at $62.85. It had a volume of 6.66M traded shares.
Pfizer filed a suit against Teva to prevent the generic drug-maker from selling its version of Viagra in the U.S. until 2019.
The Hartford Financial Services Group said Wednesday it plans to use funds raised from a debt/equity offering to buy back Treasury’s Preferred Shares.
Fitch Ratings Upgrades Sears Holding Corp to a ‘BB-’ from a ‘B+’ Rating,
Citigroup executive William Rhodes will retire as of April 30, after a 53 year career with the bank.
Tim Seymour said on CNBC’s Fast Money that he recommends a long position in Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX). Freeport-McMoRan (FCX) fell 0.14% today and close at $83.54.
Guy Adami is a buyer of McDonald’s Corporation (NYSE: MCD), which fell 0.77% today. McDonald’s (MCD) had a volume of 5.77M shares and it closed at $66.72.
Karen Finerman thinks Yum! Brands, Inc. (NYSE: YUM) is a buy, and Pete Najarian believes that JDS Uniphase Corporation (NASDAQ: JDSU) is going up. Yum! Brands (YUM) closed 0.13% down today, while JDS Uniphase (JDSU) spiked 4.42%.
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