9/15/09 am Tue Judge rejects BofA SEC Deal

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Post #107 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. Towards the end of this Blog is an update of the Dow 30's most recent SEC filings as of 9/4/09.

A read of Tuesday's 9/15/09 print editions of: Wall Street Journal, Financial Times, Investors Business Daily, New York Times, Atl Journal Const, & USA Today yielded the following stories about Dow Jones Industrial Average 30 component companies and the Dow with stories about the Dow aggregated first and then items about Dow Jones Industrial Average 30 companies presented alphabetically, followed by symbol and Thursday's closing price and related data:

Dow: WSJ pC1 "Blue Chips Claw Back, Rising 21.39" by Peter A. McKay says stocks recovered from Friday's modest losses and a Monday morning decline to finish with slight gains. GE led the gains in percentage terms, up 4.6%.

WSJ pc6 "Large Stock Focus - GE, DuPont and AES Lead March Higher" by Geoffrey Rogow says another round of buying in industrial and materials companies, including GE and DuPont, helped stocks close slightly higher, while AES paced a move into the black for utilities.

Fin Times p24 "US equities" says financial stocks lost ground as investors were unsettled by fears that a trade row between the US and China might escalate.

NYT pB9 "Stocks & Bonds A Slight Uptick and a Cool Reaction to Obama's Speech" by Jack Healty says Pres. Obama's speecon on overhauling the financial system was interrupted once by spontaneous if milquetoast applause that seemed to reflect Wall St.'s reaction.

Inv Bus. Daily pA3 "Indexes shake Off Early Weakness As IBD 100 Leads" by Alan R. Elliott says major indexes shook off a slow start Monday to collect their sixth advance in the past seven sessions. The market came under pressure early with news that China was cndidering retaliation for US sanctions on Chinese tire makers.

USA Today p4B "Stocks bounce back from early sell-off" says stocks clawed back from early losses to post moderate gains Monday, wtih major market indexes ending at or near their highest levels in nearly a year. Stocks began to recover from an early dip that sent the Dow Jones Industrial Average down 100 points as investors seized the dip to inject new money into the market.

The Dow Jones Industrial Average closed Monday at 9626.8 up 21.39 or 0.22% from Friday's close of 96205.41. Of the 30 Dow Companies: 16 gained and 14 declined with the biggest loser being Hewlett-Packard HPQ $45.7 -0.40 0.87% 12,916,717 NYSE and the biggest gainer being JPMorgan JPM $43.75 +1.25 2.94% 28,950,261 NYSE.

The current divisor for the Dow found at today's page C4 of The Wall St. Jrnl is .132319125 unchanged. Monday's Dow Jones Industrial Average closing numerator was 1273.81 up 2.83 from Friday's closing Dow numerator of 1270.98. 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 increase for today of 2.83 by the divisor you get 21.39, the increase in Monday's Dow close.

The average closing price (the closing numerator divided by 30) of Monday's Dow Jones Industrial Average was 42.46 up 0.09 from Friday's Dow Jones Industrial Average closing price of 42.37. The median closing price of Monday's Dow Jones Industrial Average was 38.83 up 0.49 from Friday's Dow Jones median closing price of 38.34. The highest closing price Monday again was IBM $118.05 +0.38 0.32% 5,875,924 NYSE and the lowest closing price Friday again was Alcoa AA $12.94 -0.05 0.38% 20,326,291 NYSE. The lowest volume Monday again was MMM and the highest volume again was Bank of Am BAC NYSE.

If Monday morning before the market opened you had purchased $100 of each of the Dow Jones Industrial Average 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have made $270
($127,380 - $127,110)

AT&T T $26.53 -0.13 0.49% 26,606,844 NYSE: IBD pA4 "Sprint Soars 10% On New Buyout Rumors - Will Deutsche elekom Bid? Combing wireless firms would be tough, bu might challenge Verison, AT&T" by Reinhardt Krause says there are fresh rumors that Germany's Deutsche Telekon, which operates T-Mobile USA, may bid for the struggling wireless carrier. While analysts say such a merger would be difficult, combining the carriers would create a third wirelss powerhouse to rival giants AT&T and Verizon Wirelss.

AA $12.94 -0.05 0.38% 20,326,291 NYSE: No mentions found.

AXP $33.92 -0.25 0.73% 9,060,637 NYSE: No mentions found.

BofAm BAC $16.99 +0.02 0.12% 162,371,622 NYSE: Front page of WSJ "Judge Tosses Out Bonus Deal - SEC Pact With BofA Over Merrill Is Slammed; New York Weighs Charges Against Lewis" by Kara Scannell, Liz Rapaport & Jess Bravin; FinTimes front page by Greg Farrell, front page of NYT pA1 by Zachery Kouwe & USA p1B by Pallavi Gogoi say a fed judge threw out the SEC's proposed settlement with BAC over its disclosure of controversial bonuses paid to Merrill Lynch in an unusual ruling that casts doubts about how the SEC handles probes of major US companies. Judge Jed Rakoff came as the NY State AG Andrew Cuomo is considering civil fraud charges agasint BofA ceo Kenneth Lewis and CFO Josepht Price.

WSJ pA4 "Obama Urges Bankers to Back Financial Overhaul" by Elizabeth Williamson & damian Paletta says Pres. Obama told Wall St. Monday to embrace serious financial reform, not fight it. JPM and BofAm declined comment on the President's speech.

WSJ pA20 Editorial "Rakoff Rakes the SEC- A judge exposes regulatory cynicism in the BofA case" applauds Judge Rakoff's decision.

LWSJ pC3 "BofA Case Over Parmalat Starts - Civil Lawsuit Involving Brazil Transaction Goes to Trial in Federal Court" by Chad Bray says some Cayman Island companies are asking a fed judge to hold Bofam liable for misrepresenting the value of one of Parmalat Finanziaria SpA's subsidiaries when it structured a financing transaction in '99. Allegedly BofA said stock worth $4 mil was worth $300 mil.

WSJ pC5 "Credit Markets" by Kate Haywood & Andrew Edwards says Warner Chilcott are selling billions of dollars of high risk loans to finance its purchase of PG's presecription drug business. The loan syndication is lead by BNP Paribas and BofA's Merrill Lynch.

BA $50.97 -0.38 0.74% 4,392,690 NYSE: No mentions found.

Caterpillar CAT $48.77 +0.24 0.49% 6,910,435 NYSE: WSJ pC6 "Options Report - Bulls Go After Goodyear As Bears Ring Caterpillar" by Tennille Tracy" says the bears appeared to domintae the action on CAT as one investor pursued a large one by two put spread buying Jan $40 puts and then selling twice as many Jan $30 puts to help offset the cost of the former as the investor looks to protect a portfolio of Cat shares or speculating on declines. Priced at $1.05 the position makes money if CAT slips below $38.95 before early next year.

Chevron CVX $71.04 +0.29 0.41% 7,194,712 NYSE: WSJ pB3 "Gorgon LNG Project Gets Partners' Final Approval" says the Gorgon liquefied natural gas project in Western Australia will cost $43 bil. Chevron and its partners signed off on the development yesterday as expected. Chevron is the project's 50% owner and its partners Exxon Mobil and Royal Dutch Shell each own 25% hope to ship gas by 2014.

Similar story at Fin Times p17 by Peter Smith & Victor Mallet and same page "Chevron eyes massive Gorgon project growth" by Peter Smith and Carola Hayes.

Cisco CSCO $22.79 -0.30 1.3% 60,622,743 NASDAQ-GS: WSJ pB4 "Avaya to Purchase Nortel Unit, But Verizon Tries to Block Deal" by Ben Dummett says Avaya won an auction for a Nortel Networks Corp. unit that makes phone systems for businesses offering about $900 mil for the operation, plus $15 mil for an employee retention program. Avaya is owned by private equity firms Silver Lake Partners and TPG capital beat out Siemens Enterprise communications which Toronto based Nortel offered as part of its bankruptcy court proceedings. Verizon, a big Nortel customer, moved to block the deal saying it would hurt US safety, welfare and security of US gov & military communications networks. Avaya's market share of enterprise phone equipment in North America will jump to 27% surpassing market leader Cisco Systems Inc. which has about 21%.

Similar story at Fin Times p18 by Paul Taylor and Alan Rappeport and at NYTimes pB2 by Ian Austen.

KO $52.16 +0.65 1.26% 16,583,447 NYSE: No mentions found.

DIS $28.08 -0.34 1.2% 12,299,323 NYSE: No mentions found.

DuPont DD $32.28+ 0.47 1.48% 7,959,022 NYSE: WSJ pc6 "Large Stock Focus - GE, DuPont and AES Lead March Higher" by Geoffrey Rogow says another round of buying in industrial and materials companies, including GE and DuPont, helped stocks close slightly higher, while AES paced a move into the black for utilities.

Exxon Mobil XOM $70 +0.02 0.03% 17,483,515 NYSE: WSJ pB3 "Gorgon LNG Project Gets Partners' Final Approval" says the Gorgon liquefied natural gas project in Western Australia will cost $43 bil. Chevron and its partners signed off on the development yesterday as expected. Chevron is the project's 50% owner and its partners Exxon Mobil and Royal Dutch Shell each own 25% hope to ship gas by 2014.

Similar story at Fin Times p17 by Peter Smith & Victor Mallet and same page "Chevron eyes massive Gorgon project growth" by Peter Smith and Carola Hayes.

GE $15.35 +0.68 4.64% 139,284,055 NYSE: WSJ pA5 "Medical Device Makers Clamber to Avert New Fees in Health Bill" by Alicia Mundy says the $100 bil medical device industry is scrambling to reverse billions of dollars in fees proposed by the Senate Finance Committee, but it faces trouble because its reluctance to offer concessions alienated some lawmmakers. The draft calls for device makers to pay $40 bil in fees over 10 years depending on the company's market share. Device companies that make imaging and x-ray equipment are upset at the legislation because of significant cuts in Medicare reimbursements for diagnostic imaging such as CT scans and MRIs. At GE about $10 bil of the health care division's $17 bil in revene comes from imaging related products and services.

WSJ pC1 "Blue Chips Claw Back, Rising 21.39" by Peter A. McKay says stocks recovered from Friday's modest losses and a MOnday morning decline to finish with slight gains. GE led the gains in percentage terms, up 4.6%.

WSJ pc6 "Large Stock Focus - GE, DuPont and AES Lead March Higher" by Geoffrey Rogow says another round of buying in industrial and materials companies, including GE and DuPont, helped stocks close slightly higher, while AES paced a move into the black for utilities.

Fin Times Comp. & Mkts p13 "GE plans to ramp up solar panel production - Group will build pilot at Colorado facility - Acquisitions could accelerate the business" by Justin Baer & Francesco Guerrera says Ge aims to ramp up production of soar power panels by next year as a crucial step in its bid to transform its initial investments in the renewable energy field into a multibilion dollar business. GE has started to build pilot production lines at its facility at Colorado.

Fin Times p17 "GE energy chief shines in critical position" John Krenicki interviews GE energy unit CEO John Krenicki.

Hewlett-Packard HPQ $45.7 -0.40 0.87% 12,916,717 NYSE: Inv Bus Daily pA2 "HP inks printing pact with Canon" says the No. 1 PC make has expanded its managed print business with a deal with Japanese pritner maker Canon which will start providing its latest multifunctional printers to Hewlett-Packard. Canaon has long supplied HP with parts, but will now broaden that deal to include printers that combine copying, printing and faxing.

IBD pA9 "More Techs In BigCap Leaders, Despite Sales" by Vincent Mao says tech stocks seem to be firming among big cap lenders. Intel and Texas Instruments both recently raised their outlooks giving the semiconduct sector a boost while HPQ is pulling back.

Home Depot HD $27.51 +0.17 0.62% 8,349,450 NYSE: NYT pB7 "Home Depot Agrees to Sell Martha Stewart Brands" says HD will begin selling a line of home improvements and othe products in Jan featuring the Martha Stewart brand.

Intel INTC $19.36 -0.15 0.77% 52,416,810 NASDAQ-GS: WSJ pA1 "Intel Sets Horse Race To Choose next Chief" by Don Clark says Intel unveiled a broad mnagement shake up that sets up a three hrose race to be the future cheo with sales chief Sean Maloney viewed as the front runner.

IBD pA4 "Intel Reogrganizes Business Units To Focus CEO On Strategy, Ties - 2 Key Execs Leave Chipmaker - 30 year vet joining EMC, general counsel exiting as monopoly cases loom by James Detar says Intel reshuffled its top managers in an overhaul that will free CEO Paul Otellini to hone strategy and strengthen ties with customers and partners.

IBD pA9 "More Techs In BigCap Leaders, Despite Sales" by Vincent Mao says tech stocks seem to be firming among big cap lenders. Intel and Texas Instruments both recently raised their outlooks giving the semiconduct sector a boost while HPQ is pulling back.

IBM $118.88 +0.83 0.7% 4,760,207 NYSE: IBD pA4 has a story about flash dirves possibly replacing harddisk drives in many devices by James Detar that interviewed Carl Amdahl, a partner in venture capital firm DCM who founded Amdahl in '70 that made IBM compati8ble mainframes and was bought by Fujitsu in '97.

JPMorgan JPM $43.75 +1.25 2.94% 28,950,261 NYS: WSJ pA4 "Obama Urges Bankers to Back Financial Overhaul" by Elizabeth Williamson & Damian Paletta says Pres. Obama told Wall St. Monday to embrace serious financial reform, not fight it. JPM and BofAm declined comment on the President's speech.

WSJ pC5 "Credit Markets" by Kate Haywood & Andrew Edwards says lead manages JPM, Barclays and RBC are gong to sell a $600 mil loan to finance the $2.75 bil purchase of a majority stake in eBay's Skype by Silve Lake.

Fin Times p23 "View of the Day" by Jan Loeys of JPMorgan discusses why investors are still shunning equities.

USA Today p1B "Something new: a credit card on consumers' side - JPMorgan Chase wants tohelp users manage debt" by Kathy Chu says JPM is coming out with a new credit card, called Blueprint, that allows consumers to avoid paying interest on everyday purchases such as groceries even while accumulating interest on other other pruchases and allows borrowers to track spending and create payment plans to whittle down debt.

Johnson & Johnson JNJ $60.34 -0.08 0.13% 6,656,173 NYSE: WSJ pB3 "J&J Lowers Price of Deal With Elan" says JNJ will knock off $115 mil off the price it was to pay for Elan (this was reported in yesterday's Blog).

KFT $26.11 +0.01 0.04% 12,747,706 NYSE: No mentions found.

MCD $54.23 -0.16 0.29% 10,275,749 NYSE: No mentions found.

MRK $32.89 +0.35 1.08% 18,402,426 NYSE: No mentions found.

Microsoft MSFT $25 +0.14 0.56% 42,810,156 NASDAQ-GS: WSJ pB4 "Silverlight Is Still Racing Flash - MSFT Closes Technology Gap With Adobe, but Bid to Win Customers Lags" by Nick Wingfield says MSFT has closed the tech gap with Adobe Systems Inc. in a battle over software for adding video and animation to Web sites.

PFE $16.36 +0.11 0.68% 34,279,315 NYSE: No mentions found.

Procter & Gamble PG $55.3 -0.34 0.61% 11,140,825 NYSE: WSJ pC5 "Credit Markets" by Kate Haywood & Andrew Edwards says Warner Chilcott are selling billions of dollars of high risk loans to finance its purchase of PG's presecriptin drug business. The loan syndication is lead by BNP Paribas and BofA's Merrill Lynch.

MMM $74.56 +0.56 0.76% 3,466,522 NYSE: No mentions found.

TRV $48.99 +0.58 1.2% 3,938,211 NYSE: No mentions found.

UTX $61.56 -0.43 0.69% 4,838,261 NYSE: No mentions found.

Verizon VZ $31.07 -0.19 0.61% 12,300,355 NYSE: WSJ pB4 "Avaya to Purchase N ortel Unit, But Verizon Tries to Block Deal" by Ben Dummett says Avaya won an auction for a Nortel Networks Corp. unit that makes phone systems for businesses offering about $900 mil for the operation, plus $15 mil for an employee retention program. Avaya is owned by private equity firms Silver Lake Partners and TPG capital beat out Siemens Enterprise communications which Toronto based Nortel offered as part of its bankruptcy court proceedings.Verizon, a big Nortel customer, moved to block the deal saying it would hurt US safety, welfare and security of US gov & military communications networks. Avaya's market share of enterprise phone equipment in North America will jump to 27% surpassing market leader Cisco Systems Inc. which has about 21%.

Similar story at Fin Times p18 by Paul Taylor and Alan Rappeport and at NYTimes pB2 by Ian Austen.

IBD pA4 "Sprint Soars 10% On New Buyout Rumors - Will Deutsche elekom Bid? Combing wireless firms would be tough, bu might challenge Verison, AT&T" by Reinhardt Krause says there are fresh rumors that Germany's Deutsche Telekon, which operates T-Mobile USA, may bid for the struggling wireless carrier. While analysts say such a merger would be difficult, combining the carriers would create a third wirelss powerhouse to rival giants AT&T and Verizon Wirelss.

WMT $50.38 -0.34 0.67% 16,547,330 NYSE: No mentions found.