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For years, short-sellers have crawled all over Netflix, convinced the company’s shares were overvalued versus its expected growth path. And for years, they closed their short positions and went home with plenty of pain and no profits. That they would eventually be proved right in some measure certainly seemed plausible.
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A World Awash in Debt
Posted By: David Faber
Regardless of whether there is another Greek “save”, preventing the actual default that still seems inevitable, the fact remains that adding debt to try and solve a debt crisis is a moronic approach when your interest costs already exceed your tax revenues (as is currently the case in Greece).
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Avis Ditches Dollar Thrifty, Buys Avis Europe
Posted By: David Faber
It’s over. The on-again, off-again battle between Hertz and Avis to buy Dollar Thrifty has effectively ended, given Avis' decision to spend a billion dollars in cash to buy Avis Europe.
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Fairholme's Berkowitz Still Bullish on Bank of America
Posted By: David Faber
Berkowitz’s thesis is straight forward: he, like other large holders (think John Paulson) see a bank generating between $45 and $50 billion a year in pre-tax, pre-provision income and believe those provisions will continue their slow, but steady decline, significantly enhancing the bank’s bottom line.
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The Containerboard Wars
Posted By: David Faber
Forgive me for having flashbacks to the arduous and unsuccessful battle Air Products and Chemicals waged to acquire Airgas, but International Paper's unsolicited bid for Temple-Inland is bringing back some bad memories, and not just because it’s in an industry that does little to excite the imagination.
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Avis Gets Manageable Solution for Dollar Thrifty Bid
Posted By: David Faber
After months of negotiations and delay, Avis Budget Group has finally received specifics from the Federal Trade Commission about what it must do in order to move ahead with any purchase of Dollar Thrifty Automotive Group.
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Sealed Air Cheap Deal Rests on 'Cheap' Money
Posted By: David Faber
It’s a big move for Sealed Air, the the food packaging manufacturer, and a big win for Clayton, Dubilier & Rice. Sealed Air’s decision to diversify by buying Diversey is being pitched as a cheap buy of a good company.
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Undistributed Foreign Earnings on the Rise
Posted By: David Faber
A report Tuesday from accounting analysts at JP Morgan seems to put a reliable number on the amount of cash that U.S. corporations hold in their foreign subsidiaries, and it’s a doozy.
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Dissecting the Liberty, Founder Bid for Barnes and Noble
Posted By: David Faber
The $17 a share bid from Liberty Media for Barnes and Noble may not be enough for a market that has sent shares of the bookseller well above it, but it is the only bid that’s emerged for the company since it put itself up for sale nine months ago and perhaps most importantly it includes the participation of Barnes and Noble’s founder and chairman Len Riggio.
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Value Act’s Cephalon Purchase and Disclosure Issue
Posted By: David Faber
In Value Act’s latest 13F filing it discloses a 1.9 million share stake in Cephalon. It’s a stake it did not own in the fourth quarter of last year.
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Anti-Trust Impediment Forces Nasdaq to Exit NYSE Bid
Posted By: David Faber
“It was black and white. There was nothing we could do to get the deal done.” Those words from an architect of Nasdaq OMX Group and IntercontinentalExchange's unsolicited bid for the NYSE Euronext after a meeting between the management of those companies and the DOJ’s anti-trust division confirmed what many had believed on the day the bid was announced (April Fool’s Day).
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