Thursday, June 25, 2009

6/25 Thurs. New Details re: BAC Bank of Am Secret Deal

The following is brought to you by Intellivest Securities Research, Inc. The following is not intended as advertising by a broker-dealer and is not a research report.

The Dow closed Wed. at 8299.86 down 23.05 or down 0.28. Of the Dow 15 gained value and 14 lost and PG Procter & Gamble was unchanged.

A read of Thurs. 6/25/09 print editions of: Wall Street Journal, New York Times, Atlanta Journal Constitution, Financial Times, Investor's Business Daily and USA Today yielded the following stories about Dow Jones 30 component companies:

WSJ @ pC1 there is a story about a possible secret agreement between regulators and BAC Bank of Amer's that occurred during the gov. bailout details that will be revealed during Fed. Reserve's Ben Bernanke's testimony before Congress today. This is also reported at Fin Times p22. NYTimes at pB4 has a similar story

WSJ @ pC3 has an article about Duoyuan Global Water Inc.'s (a Chinese company) IPO soaring 37%. The story notes that Duoyuan competes with a subsidiary of GE in the water-treatment industry. GE is also mentined at WSJ pB2 as being in a dispute with rail-car maker Greenbrier over a $1.2 billion contract.

WSJ @pC has a story entitled "Boeing, Down 5.8%" that said how Beoing dragged the Dow down because of its announcement that it was delaying the first flight of its 787 Dreamliner. JPM JPMorgan is cited as saying the delay will push BA Boeing's per share earnings down. Your blogger issued a Research Report this morning and a related Press Release on PR Newswire saying BA is a buy because it did the right thing in delaying the flight instead of spinning it and the stock market will eventually recognize that. WSJ @pC10 has a story entitled "Dreamliner's Asian Angst" that says Boeing's delay will hurt Asian airlines.

WSJ @pB1 has a story about how the Oscars will double the nmber of nominees for Bst Picture to 10 films that will help Dis Walt Disney's small movies that aren't necessarily commercial hits but are good such as Dis' "Wall-E." Dis and GE's NBC Universal are in a story @ WSJ pB5 about how several major cable networks are readying systems that will let only paying subscribers watch cable shows on the web. Networks such as A&E and the History Channel, which are owned by a venture that includes Dis Walt Disney and GE's NBC are going to participate in a test by Comcast and other to be held this summer. Time Warner's CEO Jeff Bewkes, a proponent of this new plan, said he is in talks with other providers including VZ Verizon and T AT&T. This is also reported at Fin Times p15.

PFE Pfizer is mentioned at WSJ pB5 in a story about how Sanofi, a French drug maker, is preparing a big push into generic drugs because its US patent protection of Plavix, the anticlotting drugg is ending soon in 2011. This drug is the world's second biggest drug second only to PFE's cholesterol pill Lipitor.

WMT Wal-Mart is mentioned at WSJ pB9 in a story about Best Buy planning to open 40 stand alone mobile-phone stories and that one of the reasons is the growing competition from WMT which is expanding its share of the electronics market.

AJC at pA10 said that KO Coke and its bottling partner COFCO announced Wednesday the opening of two new bottling plants in China.

AA Alcoa rose 2.1% yesterday to $10.21 notes FT @ p22 in a story about yesterday's Dow that also mentins MSFT Microsoft rising 0.6% and BAC Bank of Am dropping 2.5%.
MSFT Microsoft is mentioned in a story @ NY Times B5 how it is discontinuing its free download for software to fight malware like viruses. (Malware is not a misspelling.)

Investor's Bus. Daily IBD at pA2 says INTC Intel said its cleared a hurdle in its proposed $884 million takeover of software maker Wind River Systems as a federal antitrust waiting period expired pushing INTC up 1.8% yesterday to 16.10.

IBD at pA4 has a story that says IBM is now no. 2 in software behind MSFT Miscrosoft and says HP Hewlett Packard has not been so successful in selling software despite spending $6.5 billio buying software companies in recent years. In a story on the same page it is said that Novell, an open source software company has been coming on strong lately in part due to its partnership with MSFT. In the next page A5, IBD has a story about how many people are trying to take credit for the favorable features of MSFT's Bing search engine.

IBD 2pB3 ahs a story about Cerner being the largest firm in health digital records. Cerner competes with GE's GE Health-care and GE Capital.

The current divisor for the Dow found at today's page C4 of The Wall St. Jrnl is
.132319125 unchanged.

Wedesday's Dow numerator was 1098.23 down 3.05 from Tuesday's Dow numerator which was 1101.28. This is the sum of all 30 closing prices. A short cut to the Dow numerator is to multiply the closing Dow by the Divisor.

Now, if you divide the Dow decrease of 3.05 in the Dow numerator by the divisor you get 23.05, the decrease in Wednesday's Dow.

The average closing price of Wednesday's Dow Jones was $36.61 down .10 from Tuesday's average closing price of $36.71. The median closing price of Wednesday's Dow Jones was $33.43 up $1.67 from Tuesday's median closing price of $31.76.

The highest closing price Wednesday again was IBM $104.15 down 0.29 - 0.28% vol:6,340,234 NYSE and the lowest closing price Wednesday again was AA Alcoa $10.21 up 0.21 + 2.1% vol: 39,065,070 NYSE.

The lowest volume Wednesday was MMM 3M $57.48 + 0.42 0.74% vol: 4,412,059 NYSE and the highest volume was BAC Bank of Am $12.35 + 0.12 0.98% vol: 332,663,907 NYSE.

If Wednesday morning before the market opened you had purchased $100 of each of the Dow 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have lost $300 ($110,130 - $109,830).

Wednesday's Closing Dow closing numbers:

Symb/Last/Change/% Change/Vol./Market

T $24.65 -0.01 0.04% 27,003,610 NYSE
AA $10.21 +0.21 2.1% 39,065,070 NYSE
AXP $22.93 -0.46 1.97% 18,303,539 NYSE
BAC $12.35 +0.12 0.98% 332,663,907 NYSE
BA $41.32 -2.55 5.81% 21,214,620 NYSE
CAT $33.4 +0.40 1.21% 10,259,820 NYSE
CVX $65.72 -0.24 0.36% 11,567,424 NYSE
CSCO $18.61 +0.04 0.22% 46,814,335 NASDAQ-GS
KO $47.5 -0.30 -0.63% 8,824,686 NYSE
DIS $22.9 +0.02 +0.09% 9,933,083 NYSE
DD $24.83 +0.43 +1.76% 8,246,601 NYSE
XOM $68.45 -0.50 -0.73% 20,671,562 NYSE
GE $11.7 +0.10 0.86% 82,112,867 NYSE
HPQ $37.22 -0.14 0.37% 17,268,361 NYSE
HD $22.68 -0.20 0.87% 14,425,880 NYSE
INTC $16.1 +0.29 1.83% 52,740,243 NASDAQ-GS
IBM $104.15 -0.29 0.28% 6,340,234 NYSE
JPM $33.46 -0.11 0.33% 50,224,203 NYSE
JNJ $55.46 +0.45 0.82% 12,341,435 NYSE
KFT $25.74 +0.11 0.43% 10,893,944 NYSE
MCD $56.3 -0.46 0.81% 7,231,551 NYSE
MRK $25.45 +0.34 1.35% 15,133,253 NYSE
MSFT $23.47 +0.13 0.56% 53,825,247 NASDAQ-GS
PFE $14.72 -0.01 0.07% 38,064,646 NYSE
PG $50.55 unch unch 12,304,838 NYSE
MMM $57.48 + 0.42 0.74% 4,412,059 NYSE
TRV $40.76 -0.24 0.59% 4,478,536 NYSE
UTX $50.81 -1.03 1.99% 6,442,172 NYSE
VZ $30.8 +0.28 0.92% 14,173,235 NYSE
WMT $48.51 +0.16 0.33% 16,605,456 NYSE

Here are the latest SEC filings as of 6/19/09 updated weekly other than ownership filings and, except for certain cases, I do not include third party shareholder proposals:

Symbol & Co. Name/Date of Filing/Form Filed/ Comments

T AT&T 5/11/09 8K
AA Alcoa 5/13/09 8K
AXP 6/17/08 8K Announcing repurchase of $3.39 of preferred shares from
the U.S. as part of TARP bailout
BAC Bank of Am 6/16/09 24B2 Prospectus Prelim, filing for
leverage return notes, a pricing supp. and 8K announcing board resignations
BA Boeing 6/9/09 8K announcing election of David Calhoun
a director
CAT Caterpiller 6/18/09 8K Supp. fin. info re: deliveries to
certain customers
CSCO Cisco 6/2/08 S8 Regis. of securities to employees
KO Coke 6/10/09 8K announcing personnel changes
DIS Disney 5/7/09 S8
DD DuPont 5/7/09 8K
XOM Exxon 5/5/09 10Q and 6/19 regarding writeoff for the Valdex judgment
GE 6/2 8K Changes to board of directors
HPQ Hewlett-Pack 6/5/09 10Q
HD Home Depot 6/4/09 10Q
INTC Intel 5/22/09 8K
IBM 6/7/09 Proxy by Shareholde
JPM JPMorgan 6/8/09 Freewriting Prospectus re: Notes linked to
a JPM index
JNJ Johnson 5/5/09 10Q
KFT Kraft 6/7/09 8K CEO Irene Rosenfeld was on a panel
MCD McDonalds 6/11/09 11K Annual report of employee stock
purchase plan
MRK Merck 6/17/09 Proxy re: Merger w/Schering-Plough
MSFT Microsfot 5/15/09 8K
PFE Pfizer 6/17/09 S4 Effective re: 6/17 Proxy re merger
with Wyeth
PG Procter Gam 6/10/09 8K re: Robert McDonald becoming new CEO
MMM 3M 5/13/09 8K
TRV Travelers 6/2/09 8K re: sale of $500 million of secs.
UTX United Tech 10Q
VZ Verizon Free Writing Prospectus for Direct
Investment Purchase shareholder prog.
WMT Wal-Mart 6/5/09 10Q