Capital Bank raises bid for Southern Community (Nasdaq: SCMF)

Palm Beach, FL 6/26/12 (StreetBeat) -- Capital Bank Financial Corp, a U.S. bank holding company that last year filed plans for a public stock offering, has raised its offer to buy Southern Community Financial Corp (Nasdaq:SCMF) by 8 percent and now plans to pay for the deal wholly in cash.

The new deal at $3.11 per share values Southern Community's equity at about $52 million, according to Thomson Reuters data.

Capital Bank, formerly known as North American Financial Holdings Inc, had earlier offered $2.875 per share to Southern Community shareholders, who had the option to receive their payment in cash or stock.

Capital Bank, founded by former Bank of America Corp (NYSE:BAC) executives Gene Taylor and Chris Marshall, has been buying troubled banks and last June filed plans to raise as much as $300 million in an IPO.

Shares of Winston-Salem, North Carolina-based Southern Community were up 11 percent in trading before the bell on Tuesday. They had closed at $2.67 on Monday on the Nasdaq.

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LargeCap Stocks to Watch Today

Tomahawk, WI 4/19/2012 (StreetBeat) -- Microsoft (MSFT), the giant software maker, is seen by analysts Thursday posting fiscal third-quarter earnings of 57 cents a share on revenue of $17.18 billion.

The stock has risen nearly 20% this year. It releases Windows 8 later in 2012.

Bank of America (BAC) is expected by analysts Thursday to post first-quarter earnings of 12 cents a share on revenue of $22.51 billion.

The stock has risen 60% in 2012, making it the biggest gainer in the Dow Jones Industrial Average.

Analysts are calling for Morgan Stanley (MS) to post-quarterly earnings of 45 cents a share, down from profit of 46 cents a year earlier.

Analysts see revenue of $7.31 billion, down from $9.49 billion last year.

DuPont (DD), the chemicals maker, is seen posting quarterly profit of $1.55 a share on revenue of $11.21 billion.

Other Dow components reporting Thursday are Travelers (TRV) and Verizon (VZ).

American Express (AXP), the credit card company, reported quarterly earnings Wednesday of $1.26 billion, or $1.07 a share, in the March-ended period, on revenue net of interest expense of $7.61 billion. Analysts were expecting profit of $1 a share on revenue of $7.57 billion.

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Groupon (Nasdaq: GRPN) Sinks 13% on 4Q Restatement

Northern, WI 4/2/12 (StreetBeat) -- Shares of Groupon (Nasdaq: GRPN) retreated 13% Monday morning as Wall Street expresses displeasure at the daily deals company’s latest accounting headache.

Late Friday, Chicago-based Groupon, which went public last year, said it needs to slash its fourth-quarter revenue outlook and deepen its net loss view due to higher-than-expected refunds.

Groupon, which has publicly clashed with the Securities and Exchange Commission over its financial metrics in the past, also disclosed it has a “material weakness” in internal controls over its financial statements.

In the wake of those announcements, a slew of shareholder-rights lawyers announced investigations into Groupon and some analysts released negative research notes.

Bank of America Merrill Lynch (NYSE: BAC) downgraded Groupon to “neutral” from “buy,” while Stifel Nicolaus cut the stock to “sell” from “hold.” Evercore Partners trimmed its price target to $20 from $28, maintaining an “equal weight” rating.

Groupon had to lower its quarterly revenue by $14.3 million and its operating income by $30 million.

Shares of Groupon dropped 13% to $15.99 Monday morning, putting them on pace to add to their 2012 slide of 11%.

Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.

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LargeCap Stocks to Watch Today

Tomahawk, WI 3/28/2012 (StreetBeat) – Tyco International (TYC) said it will merge its flow control business with diversified industrial manufacturing company Pentair (PNR) to create an industry leader with an expected $7.7 billion in pro forma 2012 revenue.

The transaction values Tyco Flow at about $4.9 billion, including assumed net debt and minority interest. Upon completion of the transaction, Tyco shareholders will own about 52.5% of the combined company and Pentair shareholders will own roughly 47.5%. The deal is expected to add about 40 cents to Pentair's 2013 earnings per share.

Pentair shares were surging 10.5% to $44.48 in premarket trading Wednesday, while Tyco shares were popping 4.6% to $56

Red Hat (RHT), the open source software company, is expected by analysts Wednesday to post fiscal fourth-quarter earnings of 27 cents a share on revenue of $291.2 million.

Red Hat shares have gained nearly 29% so far in 2012, and the stock hit a new 52-week high of $54.01 on Tuesday before losing 2.3% to close at $51.90.

Nokia (NOK) introduced its first smartphone design for China on Wednesday, hoping for a turnaround through the world's largest cellphone market.

The struggling mobile phone maker said that the new Lumia 800C can run on China's CDMA networks and will be supported by China Telecom, a leading carrier in the country.

Shares were gaining 3.7% to $5.57.

Bank of America (BAC) is assembling an international advisory board that would provide chief executive Brian Moynihan with guidance on global strategy, The Wall Street Journal reported, citing people familiar with the situation.

Shares were trading higher by 1% at $9.70.

Apple (AAPL) will offer refunds to all buyers of the new iPad in Australia after the nation's consumer watchdog accused it of misleading advertising, according to reports.

The Australian Competition and Consumer Commission demanded that Apple make consumers aware its third-generation iPad can't connect to a 4G mobile data network in Australia due to technical incompatibility, Reuters reported.

Apple agreed to post warnings that its new iPad wasn't compatible with current Australian 4G LTE networks over the next week.

Shares were rising 0.6% at $617.99.

Goldman Sachs (GS) senior executives have talked about splitting the roles of CEO and chairman, reports said, but pressure for such a move may have eased after a union pension fund withdrew its proposal to divide the chairman and CEO jobs after Goldman agreed to change its board structure.

The deal between Goldman and the American Federation of State, County and Municipal Employees means the securities firm will appoint a "lead" director, but shareholders won't get a chance to vote at the firm's annual meeting in May on the proposal to replace Chairman and CEO Lloyd Blankfein with an independent chairman, The Wall Street Journalreported.

Shares were up 0.5% at $126.96.

Family Dollar (FDO), the off-price retailer, posted fiscal second-quarter earnings of $1.15 a share on sales of $2.46 billion. Analysts were expecting profit of $1.13 a share on sales of $2.46 billion.

Shares were nudging lower by 0.3% to $58.08.

Robbins & Myers (RBN), a supplier of equipment and systems for applications in the global energy, industrial, chemical and pharmaceutical markets, reported second-quarter earnings of 84 cents a share on sales of $256 million, beating the average analyst estimate of 75 cents a share on sales of $238 million.

Progress Software(PRGS) will earn 25 cents a share in its first quarter on revenue of $120.5 million, according to analysts.

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LargeCap Stocks to Watch Today

Tomahawk, WI 3/23/2012 (StreetBeat) – Nike (NKE), the sneaker maker, posted third-quarter profit ahead of consensus estimates.

Beaverton, Ore.-based Nike earned of $560 million, or $1.20 a share, on revenue of $5.85 billion for the quarter ended Feb. 29, beating the average earnings estimate of analysts of $1.17 a share on revenue of $5.82 billion.

Gross margin came in at 43.8% for the quarter, down from 45.8% a year earlier.

"Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders," said Mark Parker, president and CEO, in a statement. "The environment remains volatile, but I'm optimistic about the future. We're starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term."

Shares were up 0.5% to $111.50 in premarket trading on Friday.

KB Home (KBH), the homebuilder, said revenue for the quarter ended Feb. 29 totaled $254.6 million, much lower than analysts' views of $337.7 million.

KB Home reported a quarterly loss of $45.8 million, or 59 cents a share; analysts were expecting a loss of 24 cents.

The announcement was a huge disappointment given that analysts were expecting the company to blow past expectations. The company posted a profit in the November-ended quarter after three straight quarterly losses, leading some to believe it had seen a turnaround along with the broader housing market.

Shares were plunging 6.6% to $10.50 in premarket trading.

Darden Restaurants (DRI), the parent of Red Lobster and Olive Garden, reported third-quarter earnings of $1.25 a share, up from $1.08 a year earlier, and slightly above analysts' expectations of $1.24 a share.

Sales were $2.16 billion, beating the forecast $2.14 billion.

The restaurant group said that sales grew 4.1% compared to the period a year earlier at Red Lobster, Olive Garden and LongHorn Steakhouse amid favorable weather conditions, underlying business strength and deceleration in food cost inflation over the year.

Darden also announced a quarterly cash dividend of 43 cents a share, payable on May 1.

Shares were rising 0.4% to $52.01 before the bell.

US Airways (LCC), seeking support for a possible American Airlines merger, is discussing a takeover plan with some creditors of the bankrupt carrier and their advisers, people with knowledge of the talks told Bloomberg.

Executives have laid out details of US Airways' proposal for a combined airline to some members of the unsecured creditors committee and gotten a positive reception, the people told Bloomberg. The goal would be to complete a merger before AMR, American's parent, exits Chapter 11.

US Airways shares were up 0.4% to $7.36.

Micron Technology (MU), the chipmaker, posted a fiscal second-quarter loss of $224 million, or 23 cents share, on revenue of $2.07 billion.

Analysts were looking for a loss of 19 cents a share on revenue of $2.02 billion.

The stock was falling more 4.3% to $8.34.

Bank of America (BAC) has begun a pilot program that will offer some of its mortgage customers facing foreclosure a chance to stay in their homes by becoming renters instead of owners.

Launched this week, the pilot program -- "Mortgage to Lease" -- will be offered to less than 1,000 Bank of America customers in test markets in Arizona, Nevada and New York.

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Glencore agrees $6.2 billion deal to buy Viterra

Tallahassee, FL 3/20/12 (StreetBeat) -- Glencore (LSE:GLEN), the world's largest commodities trader, is buying Canada's leading grain handler, Viterra (TOR:VT), in a cash deal valuing it at C$6.1 billion ($6.2 billion).

Glencore, which is also in the throes of a $36 billion takeover of miner Xstrata (LSE:XTA), already markets and produces crops as well as metals, minerals and oil, but has earmarked agricultural commodities as an area for growth.

It said the deal offers C$16.25 per Viterra share and has been unanimously approved by Viterra's board. The price, broadly in line with market expectations after days of speculation, is a 48 percent premium over Viterra's closing price on March 8, the day before it announced it had received expressions of interest.

Glencore said it would pay for the deal using existing cash resources and credit facilities, but will also lighten the burden by selling the majority of Viterra's Canadian assets and some others to agri-business firms Richardson International and Agrium Inc (TOR:AGU) for roughly C$2.6 billion in cash.

Shareholders accounting for 16.5 percent of Viterra's stock, including the company's largest investor, Alberta Investment Management, have already pledged their support for the deal.

The rest of Viterra's investors will vote on the deal at a special meeting expected in May.

Viterra will pay Glencore a C$185 million break fee if it accepts a better offer from another party, or if its board withdraws or modifies its recommendation.

Glencore would have to pay Viterra a C$50 million reverse break fee if the deal does not close for regulatory reasons.

Agrium will acquire the majority of Viterra's retail agri-products business, including its 34 percent stake in Canadian Fertilizer, for which it will pay C$1.8 billion. Richardson will acquire 23 percent of Viterra's grain-handling assets as well as certain processing assets in North America for C$800 million.

"The acquisition of Viterra reflects our strong belief in the importance and future potential of the Canadian and Australian grain markets," Chris Mahoney, Glencore's head of Agricultural Products, said in a statement.

Viterra had said on Monday it was in exclusive talks with a prospective buyer, but did not identify a suitor.

Analysts have said a deal that splits Viterra three ways is unlikely to disrupt Glencore's blockbuster tie-up with Xstrata - a prize it has been working towards for years - and was instead a reflection of the trader's opportunistic approach to acquisitions, as the Canadian Wheat Board's monopoly on Western Canadian wheat and barley is slated to end this year.

In Viterra, Glencore and partners will acquire the leading Canadian handler of spring wheat, canola, barley and oats.

Glencore describes itself as one of the leading exporters of grain from Europe, the former Soviet Union and Australia. It commanded almost 9 percent of the global market for grains at the time of its public share offering last May.

Bank of America Merrill Lynch (NYSE:BAC) and RBC Capital Markets (TOR:RY) advised Glencore. Canaccord Genuity advised Viterra, and TD Securities worked for the company's board of directors.

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Bank of America (NYSE: BAC) reverses loss and earns $2 billion

Tallahassee, FL 1/19/12 (StreetBeat) --Bank of America (NYSE: BAC) made $2 billion in the last three months of last year, reversing a loss from a year earlier. It offset legal expenses over mortgages and losses in its investment banking business by selling debt and its stake in a Chinese bank.

The bank said Thursday that it made 15 cents per share in the fourth quarter. That fell short of the 22 cents expected by analysts surveyed by FactSet, a provider of financial data, but was in line with other estimates.

For the year, the bank made $1.4 billion. It lost $2.2 billion in 2010.

Bank of America has been raising cash by selling pieces of itself that don't fit into its basic banking model. The strategy was also a way to prepare for a Federal Reserve stress test, which is under way, and meet international regulatory standards.

"We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company," CEO Brian Moynihan said.

Bank of America's results are considered a gauge of the health of the American consumer. The bank serves about half of American households. The results showed that housing continues to remain a concern in the economy.

Bank of America's real estate business lost $1.5 billion after a 74 percent decline in new home loans. The bank lost some market share and closed a division that helped third-party home lenders.

But Americans seemed to be getting their financial houses in order by paying off more debt on time.

Bank of America, one of the largest credit card issuers, said customers who paid bills a month late declined for the 11th consecutive quarter. New credit card accounts also grew 53 percent, and the division posted a profit of $1 billion.

Already dealing with an image problem after the 2008 financial crisis, Bank of America caused an uproar last fall when it announced a $5 monthly fee for its debit cards. The bank quickly backed off.

Banks have been raising all types of customer fees. They say they need to make up lost revenue because a federal law that took effect last year caps what banks can charge stores for purchases paid for with the swipe of a debit card.

The $2 billion net income for the fourth quarter compared with a $1.2 billion loss in the same quarter a year ago. Revenue was $25.1 billion, up 11 percent and higher than the $23.7 billion estimated by FactSet.

The bank made $2.9 billion by selling its stake in China Construction Bank and $2.4 billion more selling debt and exchanging its higher-cost preferred stock for common stock.

Bank of America stock was clobbered for two years and lost more than 60 percent of its value. But the market seems to like what Moynihan is doing. The stock has soared 23 percent in 2012. It was up 6.6 percent in pre-market trading to $7.26.

The bank set aside $1.5 billion for litigation expenses, mostly related to fighting lawsuits from mortgage loans.

Bank of America's investment banking business reported a loss of $433 million due to lower investment banking fees and lower sales and trading driven by the rocky stock and bond markets in the last three months of the year.

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Clinton Townsend's ATM Fee Fix: Watch Ads Instead Of Paying Charge

Orlando, FL 12/5/11 (StreetBeat) --What if there was a simpler solution to avoiding an ATM fee than running all over town looking for an in-network machine? One Brooklyn, New York-based entrepreneur says he found it.

Instead of paying a fee to use an out-of-network ATM fee, Clinton Townsend, the founder of Free ATMs NYC, proposes consumers watch an ad, the New York Daily News reports. Townsend has already installed one of the free ATMs at a New York City music venue. Townsend's business plan may be coming at just the right time. Americans spent $7.1 billion in ATM fees in 2010, according to Oliver Wyman, a consulting firm.

Towsend, whose company is independent from banks, said the ads don't hold customers up because it doesn't take any longer for his ATMs to process a transaction than it takes a bank to respond to a request. He added, that the company considers both whether a location will offer a good demographic for advertisers and consumers' safety before choosing a location.

But if consumers would prefer paying a fee to watching an advertisement, Townsend's ATMs give them the option to do so, he said. If they decide to pay the fee, ATM users have the option of donating part of it to a charity.

If past banking experiments are any indication, Townsend's idea may take off. JPMorgan Chase (NYSE:JPM) abandoned a test program where the bank charged non-Chase customers in a few states $4 or $5 to use the banks ATMs after just two months, according to CNNMoney.

The bank went back to charging its usual $3 fee for out of network customers after determining that the higher fees weren't generating enough revenue to justify expanding the program nationwide. Still, the $3 fee is higher than the average charge in the cities with the highest ATM fees, according to bankrate.com.

But Chase's decision to just lower its ATM fee likely won't satisfy consumers. Seventy-Seven percent of respondents to a November Ally Bank survey said that they don't think it's okay for a bank to charge an ATM fee.

Consumers aren't the only ones complaining about high ATM fees. ATM operators filed a lawsuit against Visa and Mastercard in October, alleging that the credit card companies' rules prevent the operators from offering their services at a lower price.

Banks have been quietly boosting fees in recent months in an effort to recoup revenue lost due to new limits on swipe fees, overdraft fees and other charges that took effect as part of the Dodd-Frank financial regulations. Bank of America (NYSE:BAC) announced in September that it would charge customers $5 to use their their debit card for purchases starting in 2012. But the bank and others ultimately abandoned plans to charge for debit card use after criticism came pouring in.

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LargeCap Stocks to Keep an Eye on Today

Tomahawk, WI 10/18/2011 (PennyPayDay) – Footwear and accessories company Crocs now sees third-quarter earnings of 31 cents to 33 cents a share, well below previous guidance for a profit of 40 cents a share. Revenue is expected to range between $273 million and $275 million, below a prior projection of $280 million.

The average estimate of analysts polled by Thomson Reuters is for earnings of 40 cents a share in the quarter on revenue of $280.5 million.

Shares were plunging 33.9% to $17.60.

Computer-services company International Business Machines reported third-quarter revenue of $26.20 billion, falling short of the average analyst estimate of $26.30 billion. The company reported third-quarter earnings of $3.28 a share, beating the average analyst estimate of $3.22 a share.

Shares were tumbling 4.2% to $178.74.

Bank of America reported third-quarter profit of 56 cents a share, beating the average analyst estimate of 19 cents..

Shares were adding 2.3% to $6.17 in premarket trading Tuesday.

Goldman Sachs reported a third-quarter loss of 84 cents a share. Analysts were expecting a loss of 16 cents.

Shares were rising 0.8% to $97.65 after some relieved investors felt the number wasn't as bad as they had expected.

Virtualization software provider VMware reported third-quarter profit of 53 cents a share, topping the Wall Street consensus target of 50 cents.

Shares were up 0.7% to $90.15.

Soda giant Coca-Cola earned an adjusted third-quarter profit of $1.03 a share, a penny above analysts estimates.

Shares were rising 0.6% to $67.41.

Chipmaker Intel is expected to report third-quarter earnings of 61 cents a share Tuesday, up from 52 cents a share a year ago.

Shares were down 0.4% to $23.18.

Internet firm Yahoo! is expected by analysts to report third-quarter earnings of 17 cents a share Tuesday, down from earnings of 29 cents a share a year ago.

Shares were up 0.3% to $15.74.

iPhone and iPad maker Apple is expected to report fourth-quarter earnings of $7.39 a share after the markets close Tuesday, up from $4.64 a share a year ago.

Shares were up 0.1% to $420.50.

Pharmaceutical, biotechnology products and consumer products maker Johnson & Johnson reported third-quarter profit of $1.24 a share, beating the average analyst estimate of $1.21 a share.

Shares were flat at $63.80.

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Project New BAC Details

Northern, WI 9/12/2011 (PennyPayDay) – Bank of America Corp. (BAC), the biggest U.S. lender by assets, will likely lose that distinction as Chief Executive Officer Brian T. Moynihan partly dismantles the money-losing empire built by his predecessor.

The firm previously was No. 1 in deposits, mortgage lending and credit cards. Those honors are already gone as Moynihan trims operations added by former CEO Kenneth D. Lewis at a cost of more than $130 billion. When Moynihan is done with his reorganization plan, called Project New BAC, the bank will have pared its workforce by tens of thousands and probably relinquished its lead in assets, jobs and mortgage servicing.

Being the biggest doesn’t matter, Moynihan said in an interview last week. Project New BAC, details of which the CEO may disclose today at a New York investor conference, is designed to make the Charlotte, North Carolina-based bank easier to manage, more focused -- and smaller, said Moynihan, 51. That’s fine with Rebel Cole, a former Federal Reserve economist.

“What kind of stupid business plan is it to be the biggest?” said Cole, now a finance professor at DePaul University in Chicago. “I’d much rather be the most profitable. They wanted to be the biggest and show they could beat Wall Street at its own game -- and they did it until Lewis let his ego destroy the company.”

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Bank of America Shakes Up Management Team

Northern, WI 9/7/2011 (PennyPayDay) – Embattled Bank of America Corp. shook up its management ranks on Tuesday, announcing that two key officers will leave and promoting two others to share the chief operating officer role.

It's the latest effort by Brian Moynihan, the bank's CEO since early 2010, to turn around a company that was once an industry stalwart but is still struggling under the weight of toxic mortgage loans. He took over the bank after predecessor Ken Lewis stepped down amid controversy over his purchase of Merrill Lynch.

Among the changes announced late Tuesday:

-- Sallie Krawcheck, head of global wealth and investment management, is leaving. A Citigroup veteran, she was hired in late 2009 toward the end of Lewis' tenure.

-- Joe Price, president of the consumer bank, will also leave. He was the chief financial officer under Lewis. Moynihan moved him to run the retail bank, Moynihan's old job, in 2010, and Moynihan at the time said the change represented his confidence in Price.

-- David Darnell, a longtime Bank of America veteran who was elevated to the top ranks by Lewis, will become co-chief operating officer. He will share the newly created position with Tom Montag, who joined Bank of America when it bought his employer, Merrill Lynch, at the start of 2009.

Darnell, previously the president of commercial banking, will be responsible for the business units that serve individuals, including mortgages, wealth management and small business.

Montag, previously the president of global banking and markets, will be responsible for the business units that serve companies and institutional investors, including commercial banking, the trading businesses, and Bank of America Merrill Lynch Global Research.

-- Barbara Desoer, who was tapped in 2008 to run the mortgage unit after Bank of America bought Countrywide, was demoted to report to Darnell instead of Moynihan. Earlier this year, Moynihan divided the mortgage unit and gave Desoer responsibility for the portion that is making new loans. Another executive, Ron Sturzenegger, is overseeing the winding down of toxic legacy loans, and he will report to Moynihan.

The changes, announced about two hours after the market closed Tuesday, mark one of Moynihan's most dramatic moves to reshape the bank. Analysts wondered how investors would react Wednesday -- whether they'll view the shakeup as part of a reasoned turnaround plan or the result of a power struggle.

Analysts said it didn't appear that Krawcheck or Price were dismissed for performance. Krawcheck's division, which included private banking and the financial advisers who focused on serving wealthy individuals, increased net income by 54 percent in the second quarter, to $506 million.

The deposits division, which was under Price, saw its net income fall 36 percent in the second quarter, to $430 million. But credit and debit cards, which were also under his purview, more than doubled to $2 billion from $826 million.

Moynihan said in a statement that he wished Krawcheck and Price well, and he portrayed their departures as a means of removing a layer of management in order to cut costs. "De-layering and simplifying at the scale in which we operate requires difficult decisions," he said.

Moynihan also described the moves as a way to streamline the bank's operating units to serve its key customer groups: individuals, companies and institutional investors.

Banking consultant Bert Ely said he wondered if the changes were driven by Warren Buffett, who announced Aug. 25 that he would invest $5 billion in the bank.

Buffett also received options to buy Bank of America stock at $7.14 per share, options that are now under water. Bank of America's shares fell 3.6 percent to close Tuesday at $6.99. They rose 4 cents in after-hours trading after the management announcement was made.

"I cannot imagine that Buffett is in Omaha just sitting idly by," Ely said.

The reorganization is effective immediately, and Moynihan called the changes "a significant step in the continued transformation of our company," which has also included at least 6,000 job cuts announced this year out of a workforce of 288,000.

The management changes are part of a cost-cutting program called New BAC, which the bank implemented in the spring. The bank said Tuesday that more changes from New BAC will emerge, with the second phase beginning next month and running through March.

Though other banks have suffered in recent months, Bank of America has been especially vulnerable. Lewis' 2008 purchase of Countrywide Financial Corp., a mortgage lender known for exotic loans, made the bank a major player in the mortgage market but has also brought quarterly losses and regulatory probes.

After years of gobbling up other companies, Bank of America under Moynihan has been shrinking, laying off workers and selling units, including international credit card businesses and half of the company's stake in China Construction Bank. Moynihan has previously described his decisions as part of a multi-year transformation that might be painful in the short term but will ensure the bank's health in the long term.

Though Moynihan inherited many of his problems, he has also been criticized for a few stumbles, including underestimating how much the bank might have to pay for settlements related to mortgage-backed securities that later soured.

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Fed Requesting BofA Contingency Plan

Tomahawk, WI 9/1/2011 (PennyPayDay) – The Federal Reserve has asked Bank of America Corp to show what measures it could take if business conditions worsen, the Wall Street Journal said, citing people familiar with the situation.

BofA executives recently responded to the unusual request from the Federal Reserve with a list of options that includes the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, the people told the paper.

Bank of America and the Fed declined to comment to the Journal. Both could not immediately be reached for comment by Reuters outside regular U.S. business hours.

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LargeCap Stocks to Keep an Eye on Today

Tomahawk, WI 8/19/2011 (PennyPayDay) – Sprint Nextel in discussions with cable companies about a possible investment that could result in the buyout of partner Clearwire, according to a Bloomberg report.

Clearwire shares were surging 25.5% to $2.90 in premarket trading Friday. Sprint shares were rising 0.3% to $3.50.

HP, desperate to boost its margins, unveiled a major corporate and strategic overhaul Thursday, which will involve ditching its WebOS devices and potentially spinning off its PC business.

The computer hardware company also gave weak guidance after reporting adjusted earnings per share of $1.10 on sales of $31.20 billion for its fiscal third quarter, compared to $1.08 a share on revenue of $30.70 billion reported in the year-ago period.

Analysts expected adjusted earnings per share of $1.09 on sales of $31.17 billion.

Shares were plunging 16.1% to $24.77.

Chipmaker Marvell Technology reported second-quarter earnings of 38 cents a share vs. the Wall Street consensus target of 37 cents a share.

Shares were advancing 9% to $13.05.

Shares of salesforce.com were spiking 5.2% to $120 after the cloud computing applications company increased its full-year revenue guidance to $2.22 billion to $2.23 billion, up from $2.15 billion to $2.17 billion.

The software company posted second-quarter adjusted earnings of 30 cents a share, in line with analysts' estimates. Revenue was $546 million, above analysts' projections of $528.8 million.

Software company Autodesk reported second-quarter profit of 44 cents a share vs. the average analyst estimate of 41 cents a share.

Shares were rising in premarket trading by 3.7% to $27.50.

Barnes & Noble said Liberty Media would invest $204 million in the bookseller, but discussions to buy it for $1 billion have ended.

Barnes & Noble shares were rising 2.6% to $12.40.

Bank of America plans to cut 3,500 jobs in the current quarter and thousands of additional cuts are expected as part of an aggressive overhaul, The Wall Street Journal reported, citing people familiar with the situation.

Shares were sliding 1.9% to $6.88.

Apparel company Gap has reaffirmed its full-year earnings guidance of $1.40 to $1.50 a share after reporting that its second-quarter profit fell to 35 cents a share from 36 cents a share a year ago. The Wall Street consensus estimate for the quarter was earnings of 33 cents a share.

Shares were up 0.2% to $15.55.

Intuit Inc., the financial management software provider, reported fourth-quarter loss of 19 cents a share vs. loss of 15 cents a share last year.

Revenue was $593 million, beating the average analyst estimate of $583 million.

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LargeCap Stocks to Keep an Eye on Today

Tomahawk, WI 8/11/2011 (PennyPayDay) – Information technology and networking giant Cisco (NASDAQ: CSCO) edged Wall Street's earnings expectations Wednesday, but posted a slight drop in profit for its fiscal fourth quarter.

Cisco reported adjusted earnings per share of 40 cents on sales of $11.2 billion, above analysts' expectations of earnings per share of 38 cents on sales of $10.98 billion.

Shares were surging 12.2% to $15.40 in premarket trading Thursday.

Food company Sara Lee (NYSE: SLE) reported fourth-quarter profit of 20 cents a share, meeting estimates.

Shares were falling 5% to $16.45.

Global media company News Corp. (NYSE: NWSA) reported better-than-expected fourth-quarter profit, earning 35 cents a share on revenue of $8.96 billion. Analysts were calling for a profit of 30 cents a share on revenue of $8.46 billion.

"While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World," CEO Rupert Murdoch said in a statement, referring to the phone hacking scandal that brought down the tabloid. "We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again."

Shares were rising 4.2% to $14.28.

Media company AOL (NYSE: AOL) said Thursday it plans to buy back $250 million of stock over the next 12 months.

Shares were rising 2.5% to $10.47 in premarket trading.

Anheuser-Busch InBev (NYSE: BUD) said Thursday second-quarter profit rose 26% to $1.45 billion, but volume in the U.S., its largest market, slumped.

Analysts were expecting the world's largest brewer to post profit of $1.5 billion in the second quarter.

Shares were tumbling 2.5% to $48.50.

Department store Kohl's (NYSE: KSS) reported second-quarter profit of $1.09 a share vs. the average analyst estimate of $1.08. Shares were rising 2.1% to $45.24.

Bank of America (NYSE: BAC ) has been holding talks with the principal investment funds of Kuwait and Qatar about selling part of its stake in China Construction Bank as it rushes to bolster its mortgage-scarred balance sheet, Reuters reported.

Bank of America shares were rising 0.5% to $6.80.

Department store Nordstrom (NYSE: JWN) is expected to report second-quarter earnings of 74 cents a share after the markets close Thursday vs. last year's earnings of 66 cents a share.

Shares were down 0.4% to $40.

Restaurant company Wendy's (NYSE: WEN) is expected to post second-quarter profit of 5 cents a share before the markets open Thursday vs. last year's earnings of 6 cents a share.

J.C. Penney (NYSE: JCP) is expected to post second-quarter earnings of 7 cents a share before the markets open Friday vs. the average analyst estimate of 6 cents a share a year ago.

There are worries that the department store could face headwinds as forecasts of a slowdown in economic activity persists.

PennyPayday Free Stock Quotes and Approach to the Stock Market

PennyPayday focuses on bringing penny stocks and small-cap companies from all exchanges into the spotlight for investors seeking early development opportunities. PennyPayday has quickly become a recognized penny stock site and a top source for investors seeking information and research on today's emerging hot stocks. PennyPayday provides the investing public with stock market daily news, free real-time stock quotes, free stock charts, research for investing, as well as economic stories, videos, and market briefs from a staff of experienced and dedicated financial journalists.

Sign up for our Free Newsletter today, and join the thousands already getting our emails on the hottest stocks to watch.

Disclaimer: Neither www.PennyPayday.com nor its officers, directors, partners, employees or anyone involved in the publication of this website or newsletters is a registered investment adviser or licensed broker-dealer in any jurisdiction whatsoever. PennyPayday may or may not have been compensated by mentioned companies. For full disclaimer/disclosure please read PennyPayday's disclaimer.

Distributed by IntelBuilder Social Media Platform