The weather is getting cold, but the market is sure staying warm. Turn up the volume and listen to the music, Fool!
"I've Got You Under My Skin" The Four Seasons and, um, Four Seasons
On Monday, Four Seasons
As of Friday, the price had fallen back to close at the $82 offer price as no competing bids had been made. Those looking for an arbitrage opportunity from a potential higher bid likely came to the realization that it would be tough to justify paying a higher price for the hotel group. To wit, it may be hard to justify the current offer as it represents a smoking 30+ times projected 2007 EBITDA and 46 times projected 2007 EPS. A well-respected manager, it's likely that Sharp has a lot of confidence in the future profitability of his hotels, but he's sure setting himself a high bar.
"Goodbye to You" by Michelle Branch, featuring FedEx
Last week, international shipper FedEx
After closing at $80.20 on Monday, Boeing's shares pushed up to $85.62 by the close of trading on Friday. This is another blow to Airbus as it continues to lag Boeing in sales of freight-carrying planes. FedEx competitor UPS
"Breaking the Chains" by Dokken and the SEC
Dokken's heavy guitars and magnificent hair ripped through the markets in the early morning Friday when The Wall Street Journal reported that U.S. business is finding some wiggle room with the SEC on Section 404 of Sarbanes-Oxley. Sarbox is often cited as an enemy of business since the regulation, Section 404 in particular, has been costing publicly listed companies billions of dollars per year since it was introduced. In particular, public companies have complained that 404, which requires them to outline their internal controls, has been interpreted far too rigidly. The result has been suffocating for businesses, but great for lawyers and accountants, both of whom are paid by the hour.
This could represent the beginning of the pendulum swinging back in the other direction. After all the corporate scandal early in the millennium, it was clear that some amount of new regulations were in order, but many think that the SEC may have gone a bit too far. Especially when it comes to Section 404, I agree that the government may have come down too hard, but I back off when it comes to shedding tears over some of the IPOs that are being done in other markets because of Sarbox requirements. The London AIM exchange in particular has been a beneficiary of this IPO migration, but I would argue that it might not be such a bad thing for the U.S. markets to "miss out" on a handful of companies that are, in many cases, at best marginally suited for the public markets to begin with.
Besides, as subscribers to The Fool's Global Gains service know, in this day and age, stocks in any exchange can be fair game for U.S. investors.
"Rapper's Delight" by The Sugar Hill Gang and America's Fortune 500
In a particularly relevant note, CNBC's "Street Signs" reported Friday on the growing use of hip-hop icons in advertising for some of the major U.S. and global corporations. With lyrics that often celebrate elements of consumer culture -- think back to Run-D.M.C.'s 1986 "My Adidas" or Busta Rhymes' more recent "Pass the Courvoisier" -- hip-hop icons may make better advertisers than, say, angst-ridden alt-rock stars like Green Day and My Chemical Romance, who tend to be indifferent if not antagonistic toward corporate America.
While commercials such as Boost Mobile's (a Sprint Nextel
As Stephen Colbert would tell you, there's absolutely nothing else that happened this week. Nothing at all. Nada. OK, fine, one last tune:
"The Battle Hymn of the [Democracy]" by Nancy Pelosi and the Dancing Dems
In a coup that was nothing if not somewhat expected, the Democrats took over both Houses of Congress in the midterm elections this week. California Senator Nancy Pelosi will become the first female Speaker of the House, while Harry Reid of Nevada will take over as Senate majority leader. In the realm of the more unexpected, though, Pres. Bush responded to the resounding defeat by accepting the resignation of Defense Secretary Donald Rumsfeld.
After drooping a bit last week, the market seemed to digest the news of the Democrat victory well, rising almost 1% for the week. With the Democrats now controlling Congress, many are cautioning against being too heavy in the areas of oil and gas, defense, and big pharma, as these are areas that could be likely targets for new legislation. On the flip side, there's been a lot of buzz around some new positive attention on areas like alternative energy. While there could be a lot of credence behind these expectations, senior Fool analyst Seth Jayson cautions against trying to play the elections.
Rock on Fool:
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