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Last Call: Movin' On Up, PE Titan Pays Record Amount for NY Co-Op

Oaktree Capital Management
Source: Oaktreecapital.com
Oaktree Capital Management

Fish don't fry in the kitchen;
Beans don't burn on the grill.
Took a whole lotta tryin',
Just to get up that hill.
Now we're up in the big leagues,
Gettin' our turn at bat.
As long as we live, it's you and me baby,
There ain't nothin wrong with that.

--“Movin' on Up", Janet DuBois

-Below Oaktree Capital founder Howard Marks puts down $52.5 million for a 30 room Co-Op.

Robert Hum's Market Musings

  • Poor start to week: stocks close at 3-month lows as Europe concerns linger
  • Dow sees 8th triple-digit decline of the year
  • No safe haven here: gold loses 2012 gains
  • Crude oil slides to 5-month low
  • U.S. Dollar Index up 11 straight days, seeks record 12-day winning streak on Tuesday

Plus: Did you miss out on that “half off Groupon ?” Groupon closed at more than 50% off its $20 initial offering price on Friday ($9.90)… but that Friday deal has since expired. Shares jumped ahead of its earnings report today and then took another strong leg up after better-than-expected Q1 results. Trading near $14 after-hours, Groupon’s stock has soared nearly 40% from Friday’s close.

What Wall Street Is Saying Tonight

FACEBOOK IPO LATEST: As of 730pm ET sources tell CNBC’s Kate Kelly Facebook is revising range to $34-$38. Facebook is expected to refile with new range tomorrow. New range values company from $92B to $103.

GROUPON BEATS EXPECTATIONS ON DOMESTIC GROWTH, LOWER COSTS/CNBC.com - Julia Boorstin: "Investors who snapped up Groupon shares on Friday certainly snagged a deal. After reporting earnings after the bell Monday, the online deals service's shares climbed, gaining some 33 percent since Friday’s close. The after-hours action extended today’s rally-Groupon's stock soared 18 percent as 14.7 million shares traded hands-the heaviest trading of the stock since its IPO on November 4. Investors were betting on growth, and that’s exactly what Groupon’s earnings revealed."

HEARD ON THE STREET/BEWARE GROUPON'S BEGUILING BOUNCE/WSJ- Rolfe Winkler: “A house of cards, Groupon isn't. But don't mistake it for a potential profit machine, nor buy the stock. The worst critics of the leading Internet coupon site have, in the past, argued that its business model would collapse when it dialed down marketing expenses. Without spending to promote its daily deals, it would be tough to generate growth. But even as the marketing budget has fallen drastically, to 21% of revenue in the first quarter from nearly 50% in 2011, Groupon still managed to increase its top line. Sales in the first quarter grew 14% from the fourth quarter. Yet even though marketing expense has fallen, the company still doesn't generate net profit.”

MOODY'S DOWNGRADES 26 ITALIAN BANKS/WSJ - David Enrich: "Moody's Investors Service kicked off its long-awaited downgrades of European and global banks by docking the credit ratings of 26 Italian lenders, a move that could ratchet up the continent's banking woes at a critical time for the currency union. The downgrades, which cite the banks' vulnerability to mounting loan defaults and potential funding problems, were expected, but they nonetheless add to concerns by making it more expensive for the banks to finance themselves via the capital markets."

NO YAHOO SEVERANCE FOR SCOTT THOMPSON: FILING/CNBC.com: “Scott Thompson won't get severance compensation after leaving as Yahoo's CEO in a scandal about his resume, according to a filing. The filing also said Yahoo agreed to appoint activist investor Daniel S. Loeb, Michael J. Wolf and Harry J. Wilson to the board, effective Wednesday.”

TEPPER'S APPALOOSA BACK INTO BIG BANKS, TECH IN FIRST QUARTER/Reuters: "Famed hedge fund manager David Tepper piled into leading technology, financial and airline stocks in the first quarter. Tepper's Appaloosa Management L.P. added new positions in Google , EMC , Qualcomm and SanDisk while almost quadrupling holdings of Apple and almost doubling a stake in Microsoft since the end of 2011, according to the firm's first-quarter disclosures statement filed with the Securities and Exchange Commission on Monday."

EX-NEWS INTERNATIONAL CEO REBEKAH BROOKS TO LEARN TOMORROW IF SHE WILL FACE HACKING CHARGES/AP: "Former News of the World editor and News International chief executive Rebekah Brooks will learn Tuesday whether she faces charges stemming from Britain’s phone hacking investigation, a spokesman for the law firm representing her said Monday. Kingsley Napley spokesman Paul Askew confirmed reports in Britain’s media that Brooks and her husband, Charlie, would learn of any possible charges when they answered bail on Tuesday. He declined further comment."

OAKTREE CAPITAL FOUNDER NEW OWNER OF MANHATTAN'S PRICIEST CO-OP/Reuters: “Oaktree Capital founder Howard Marks paid a record-smashing $52.5 million for a sprawling Manhattan apartment nestled inside what is arguably the city's most exclusive building: 740 Park Avenue. Marks and his wife, Nancy, will move into the co-op — a spread that spans two stories and 30 rooms. The apartment comes with two libraries, eight bedrooms, 10 bathrooms, six terraces and a dining room. Plus a spare. The maintenance is $412,000 a year.”

NEW JERSEY MAN BOASTS MAGNETIC ATTACHMENT TO IPOD/Reuters – Dave Warner: “Professional body piercer Dave Hurban is a man attached to his iPod. Literally. Hurban, 21, who works in a tattoo parlor in Newfield, New Jersey, implanted four metal studs in the skin of his wrist and secured his iPod to them magnetically.”

Tomorrow's Earnings

Before the bell:

Home Depot, TJX Cos., Saks

After the bell:

JC Penney, Ralcorp

Tomorrow's Economic Data

830a Apr Retail Sales

830a Apr CPI

830a May Empire State Survey

1000 May NAHB survey

1000 Mar Business inventories

Tomorrowon CNBC

Donald Trump, Trump Organization Chairman (730a)

Roger Lowenstein, Sequoia Fund Outside Director (800a),

Jon Steinberg, Buzzfeed President (1000a)

Bill McDermott, SAP Co-CEO (1000a)

Chris Kelly, LOYAL3, Facebook Fmr Chief Policy Officer (130p)

Carol Pepper, Pepper International CEO (200p),

Bill Cowher, Fmr. Pittsburgh Steelers Head Coach (500p)

Wilbur Ross, WL Ross CEO (500p)

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