Thursday, July 30, 2009

7/30/09 am Boeing Pressured to give British Air Discount

Post #28 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. Click at the 7/23/09 Blog to find a description of this week's profiled company, AXP American Express Company. AXP closed Wednesday at $27.75 +0.07 0.25% on volume of 13,413,070 NYSE. Fin Times p24 today says AXP Amex's decline of 2.5% to 27.68 was "in the wake of a brokerage downgrade."

A read of Thursday's 7/30/09 print editions of: Wall Street Journal, Investors Business Daily, Financial Times, USA Today, and Atl Journal Const yielded the following stories about Dow Jones 30 component companies:

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

WSJ pB1 lead story in "Marketplace" "British Air Presses Boeing for Break - Airline Seeks to Renegotiate Payments for Dreamliner, Putting Funding Pressure on Plane Maker". British Airways PLC is pressing BA Boeing to renegotiate installment payments on 787 Dreamliners the airline has ordered. The airline's CEO Willie Walsh said he is seeking to delay cash payments that all airlines make to Boeing and its Eurpopean rival Airbus as new planes are being built. These predelivery payments can total tens of millions of dollars per aircraft because airlines pay about 1% of the plane's price at contract signing and over the new 24 month predleivery they pay another 30% of the price. [Note: Intellivest Securities Research, Inc. issued a Research Report on BA Boeing as a Buy on June 25, 2009 when BA's stock was $41.32. BA Boeing closed yesterday at 43.37.] At front page of Fin Times "British Airways cuts canapes in drive to save cash" that mentions other cost savings by the airline but doesn't mention Boeing.

WSJ pC1 in a story on the Dow says CVX Chevron was down 1.8% or 1.22 to 67.12 and was the biggest contributor to the decline in the price weighted Dow. Fin Times p24's story on the Dow also notes XOM Exxon Mobil lost 0.64% to 71.43, and MSFT rose 1.4% to 23.8. NYTimes story on the Dow pB8 notes MSFT's shares gain 1.4% to close at 23.80.

WSJ pB1 "IBM's Shift to Strategic Consulting Pays Off as Tech Slowdown Drags On" says that IBM CEO Samuel Palmisano, pictured in the story with Pres. Obama, has been busy going around the world promoting the use of technology to improve everything from roads and water systems to the environment and health care. The story says most of IBM's high tech rivals have problems noting MSFT reported its first full year sales decline and HPQ Hewlettt Packard posted declines in sales and earnings in May even after doubling down on traditional coputer services and outsourcing by buying EDS last year. It also says INTC Intel reported its first quarterly loss since the 1980's.

WSJ pB4 and AJC pA15 says Coca Cola Enterprises which is a third owned by KO Coke, posted a 2Q profit, reversing a year earlier loss caused by a $5.3 billion write down of its licensing assets and it raised its full year outlook. CCE is KO's largest bottler.

WSJ pA1 "Yahoo Tie-Up Is Latest Sign Tide Turnign fo Microsoft's Ballmer" is one of several articles in the WSJ about the newly announced deal. WSJ pB5 "Advertising" Column, "Microsoft, yahoo Tout Ad Alliance - Partners Court Madison Avenue, Promising More Copetition for Google" says that MSFT has beein trying to drup up support for its alliance with yahoo and damp antitrust concerns in Washington. Google captured about 70% of the $10.5 billion spent in the US last year on search ads - those that appear alongside Internet search results. Related story WSJ pA14 "The Microsoft-Yahoo Deal - For Bartz, Some Potential Pitfalls Arise - Web-Search Pact Frees Up Resources, but Yahoo CEO Faces Integration Risks; Yahoo Shares Plunge 12%" says under the new deal Yahoo will stop investing in 2 widely used technologies that it helped pioneer. Yahoo will sel search ads to large advertisers for both Yahoo and MSFT, taking calls from marketers such as VZ Verizon. A story just below that one is "Antitrust Scrutiny Will Grow" that says the proposed pact with Yahoo will likely face considerable scrutiny by federal antitrust regulators noting that Sen. Herb Kohl, Chair of the Senate Judiciary Antitrust Committee said the deal warrants "careful scrutinY' becaue it would compbine industry gians and direct competitors in Internet advertising and search markets. WSJ pC10 "Yahoo's Bartz Has Missed the Boat" says that Yahoo's CEO Carol Bartz did a crummy deal because it gives Yahoo no cash upfront and gives MSFT the right to control Yahoo's search business. Not related to the deal, Walter Mossberg's column pD1 discussed MSFT's new edition of Windows, called Windows 7.

Fin Times has a front page story above the line "Microsoft and Yahoo seal deal - Google dominance targeted - Search alliance draws fire." Related story Fin Times p14 "Microsoft takes a shot at main title" and another story same page "High hopes resting on Bing" and still another story same page "Bartz fails to bring in rich offer many expected."

The deal is front page of Inv Bus Daily "Yahoo Forges Long Awaited Microsoft Pact" and also pA5 "Microsoft Yahoo Search pact Raises Antitrust Issues" and another story "Web Ad Buyers Question Value of Yahoo Deal."

NYTimes lead story in "Business Day" pB1 "Linked Up. Now What? For Microsoft and Yahoo, a Deal And a Long Shot" and a related sotry at pB2 "Shades of AOL In a Search Deal."

USA Today's story at pB1 "Microsoft, Yahoo strike deal to share tech, ad revenue" with a related story about "Bold step for Yahoo's Bartz" at p3B.

WSJ pB9 "Technology" "Sprint's Woes Continue Despite Palm Pre Debut" says the primary beneficiaries of Sprint's struggle to keep subscribers who are willing to sign long term contracts are Verizon Wireless, jointly owned by VZ Verizon communications Inc. and Vodafone Group PLC and another competitor, T AT&T who sells the iPhone 3GS from Apple. Just below that article is "Qwest Boosts Profit As Revenue Declines" that says Qwest continues to spend on data and Internet services countering the downbeat comments issued by its larger rivals, VZ and T AT&T. Similar theme at NYTimes pB7 "Sprint Nextel Loss Widens as Subscribers Decline."

WSJ pC1 "Senate Probes Banks for Meltdown Fraud" mentions a Senate Subcommittee has issued a subpoena to Washington Mutual that is now largely owned by JPM JPMorgan.

WSJ pC3 has a story about Visa's Net jumping 73% and notes that AXP Amex which is both a lender and a processor saild last week tis 2Q earnings fell by nearly half because of rising delinquencies.


The Dow closed Wednesday at 9070.72 down 26 or 0.29% from Tuesday's close of 9044.72. Of the 30 Dow Companies: 13 gained, one was unchanged (HD Home Depot) and 16 declined with the biggest loser being CVX Chevron $67.12 -1.22 1.79% 10,618,964 NYSE and the biggest gainer being UTX United Technologies $53.2 +0.76 1.45% 4,784,793 NYSE.

Wednessday's Dow closing numerator was 1200.23 down 3.44 from Tuesdays's Dow closing numerator of 1203.67. 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 numerator decrease of 3.44 by the divisor you get 26, the decrease in Wednesday's Dow close.

The average closing price (the closing numerator divided by 30) of Tuesday's Dow Jones was 40.00 down 0.12 from Tuesday's average closing price of 40.12. The median closing price of Wednesday's Dow Jones was 34.87 down 5.62 from Tuesday's Dow Jones median closing price of 40.49.

The highest closing price Wednesday was IBM $117.26 -0.02 0.02% 5,035,157 NYSE and the lowest closing price Wednesday again was Alcoa AA $11.01 -0.25 2.22% 28,294,119 NYSE.

The lowest volume Wednesday was again TRV Travelers $42.63 -0.72 1.66% 3,898,786 NYSE and the highest volume was BAC BofAm $13.52 +0.18 1.35% 257,089,051 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 $360 ($120,360 - $120,000).

Wednesday's Closing Dow closing numbers:
Symb/Last/Change/% Change/Vol./Market

T $25.95 +0.43 1.68% 26,802,258 NYSE
AA $11.01 -0.25 2.22% 28,294,119 NYSE
AXP $27.75 +0.07 0.25% 13,413,070 NYSE
BAC $13.52 +0.18 1.35% 257,089,051 NYSE
BA $43.37 +0.12 0.28% 5,010,590 NYSE
CAT $41.83 -1.07 2.49% 12,287,682 NYSE
CVX $67.12 -1.22 1.79% 10,618,964 NYSE
CSCO $21.72 -0.21 0.96% 33,307,772 NASDAQ-GS
KO $49.28 -0.11 0.22% 8,968,609 NYSE
DIS $25.89 -0.48 1.82% 11,648,055 NYSE
DD $29.54 -0.56 1.86% 6,753,535 NYSE
XOM $71.43 -0.46 0.64% 23,721,505 NYSE
GE $12.26 -0.26 2.08% 79,364,544 NYSE
HPQ $42.19 +0.21 0.5% 13,367,320 NYSE
HD $25.39 unch unch 11,888,755 NYSE
INTC $19.4 +0.03 0.15% 49,624,957 NASDAQ-GS
IBM $117.26 -0.02 0.02% 5,035,157 NYSE
JPM $37.77 -0.31 0.81% 29,790,962 NYSE
JNJ $61.16 +0.24 0.39% 10,390,527 NYSE
KFT $28.54 +0.07 0.25% 6,436,412 NYSE
MCD $56.41 -0.06 0.11% 7,927,605 NYSE
MRK $29.87 -0.15 0.5% 15,749,166 NYSE
MSFT $23.8 +0.33 1.41% 73,140,389 NASDAQ-GS
PFE $15.75 -0.28 1.75% 59,905,167 NYSE
PG $56.12 +0.41 0.74% 9,508,221 NYSE
MMM $68.72 -1.16 1.66% 4,629,195 NYSE
TRV $42.63 -0.72 1.66% 3,898,786 NYSE
UTX $53.2 +0.76 1.45% 4,784,793 NYSE
VZ $31.98 +0.58 1.85% 20,549,937 NYSE
WMT $49.37 +0.45 0.92% 16,496,154 NYSE

Here are the latest SEC filings as of 7/15/09 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 6/30/09 11K Annual Report of Employee Stock Purchase Plan
AA Alcoa 7/13/09 8K 2nd Quarter Earnings Results
AXP 6/30/08 8K Settlement w/FDIC re: convenience checks
BAC Bank of Am 7/1/09 8A Regis. of Securities
BA Boeing 7/7/09 8K Acquisition of Vought Aircraft
CAT Caterpiller 6/23/09 11K Annual Report of Employee Stock Purchase Plan
CSCO Cisco 6/2/08 S8 Regis. of securities to employees
KO Coke 6/25/09 11K Annual Report of Employee Stock Purchase Plan
DIS Disney 6/26/09 11K Annual Report of Employee Stock Purchase Plan
DD DuPont 6/29/09 11K Annual Report of Employee Stock Purchase Plan
XOM Exxon 6/24/09 11K Annual Report of Employee Stock Purchase Plan
GE 6/25/09 11K Annual Report of Employee Stock Purchase Plan
HPQ Hewlett-Pack 6/30/09 11K Annual Report of Employee Stock Purchase Plan
HD Home Depot 6/29/09 11K Annual Report of Employee Stock Purchase Plan
INTC Intel 7/14/09 8K Financial results 3rd quarter
IBM 6/29/09 11K Annual Report of Employee Stock Purchase Plan
JPM JPMorgan 7/14/09 Freewriting Prospectus
JNJ Johnson 6/28/09 8K Press release re: financial results
KFT Kraft 6/22/09 8K re: personnel changes
MCD McDonalds 6/22/09 Prospectus
MRK Merck 7/1/09 8K Closing of sale of notes
MSFT Microsoft 6.29.09 11K Annual Report of Employee Stock Purchase Plan
PFE Pfizer 6/29/09 11K Annual Report of Employee Stock Purchase Plan
PG Procter Gam 7/13/09 8K re: 0.44 dividend
MMM 3M 7/7/09 8K settlement of shareholder derivative suit
TRV Travelers 6/24/09 11K Annual Report of Employee Stock Purchase Plan.
UTX United Tech 6/26/09 11K Annual Report of Employee Stock Purchase Plan
VZ Verizon 6/29 11K Annual Report of Employee Stock Purchase Plan
WMT Wal-Mart 6/5/09 10Q

Here are the CEOs of the Dow 30 Companies:

T Randall L. Stephenson
AA Klaus Kleinfeld
AXP Kenneth I. Chenault
BAC Kenneth D. Lewis
BA W. James McNerney, Jr.
CAT James W. Owens
CVX David O'Reilly
CSCO John Chambers
KO Muhtar Kent
DIS Rogert Iger
DD Ellen Kullman
XOM Rex W. Tillerson
GE Jeffrey R. Immelt
HPQ Mark Hurd
HD Frank Blake
INTC Paul S. Otellini
IBM Samuel J. Palmisano
JPM Jamie Dimon
JNJ William C. Weldon
KFT Irene Rosenfeld
MCD Jim Skinner
MRK Robert Clark
MSFT Steve Ballmer
PFE Jeffrey Kindler
PG Bob McDonald
MMM George W. Buckley
TRV Jay S. Fishman
UTX Louis Chenevert
VZ Ivan Seidenberg
WMT Mike Duke