So Far, So Good! What Will Happen In The Second Half?
By Larry C. Paxton.
The results for the first half of 2014 are in. So far it has been a mellower year than 2013. The stock market has performed as many people predicted, with new highs being established. At the same time the popular commodities were up as well. Economic data had some interesting mixed results. Unemployment fell a little, but the GDP caused some concern. Nevertheless, the major stock exchanges all improved during the month, for the quarter and year to date. Some experts remain bullish, others are still predicting a bearish correction. There have been quite a few significant mergers and acquisitions. Politically there are some hotspots in the world that seem very fragile and could have an impact. In the US we continue to struggle with political gridlock as the Senate, House and the President just can’t seem to address some critical issues in a way that the American people would like. But the midterm elections are nearing, some primary elections have already been held, and it could be a pretty volatile election season coming up. So, as the caption above indicates, CEOs and their C-level management team members, investors, workers, and citizens continue to have a giant question mark as we enter the second half of 2014.
We start out July by celebrating Independence Day. Let’s be thankful for the freedoms and opportunities the Founding Fathers initiated, fought for, and which we enjoy today. As we celebrate let’s remember that around the world our success is an ideal many people dream of and strive for.
Following are news items of interest for The PBR1000, most current date first. (NR) behind a company name means “No Ranking.”
Monday, June 30, 2014:
DJIA closes at 16,826.20 on 06/30/14, +0.65% over 05/30/14, +2.24% QTR, +1.51% YTD. NASDAQ closes at 4,408.18 on 06/30/14, +3.90% over 05/30/14, +4.98% QTR, +5.54% YTD. SPX closes at 1,960.23 on 06/30/14, +1.91% over 05/30/14, +4.69% QTR, +6.05% YTD. Gold closes at 1,327.20 on 06/30/14, +6.06% over 05/30/14, +3.26% QTR, +10.39% YTD. Silver closes at 21.06 on 06/30/14, +12.02% over 05/30/14, +6.80% QTR, +8.72% YTD. Oil closes at 105.48 on 06/30/14, +2.48% over 05/30/14, +4.03% QTR, +7.17% YTD.
PPG Industries(PBR180) to acquire Mexico based coatings company Consorcio Comex for $2.3 billion. Click here for the PPG press release.
TreeHouse Foods(PBR812) acquiring Flagstone Foods for $860 million cash. Click here for the TreeHouse Foods press release.
General Motors(PBR7) announces 6 new safety recalls affecting 7.6 million vehicles. Click here for the GM press release.
Devon Energy(PBR252) selling non-core US oil & gas units to Linn Energy(NASDAQ: LINE) for $2.3 billion pre-tax. Click here for the Devon Energy press release.
Johnson & Johnson(PBR39) completes divestiture of the Ortho-Clinical Diagnostics unit to The Carlyle Group(PBR521) for $4 billion. Click here for the J&J press release.
Friday, June 27, 2014:
DJIA closes at 16,851.84, -0.56% over last week, +0.81% MTD, +1.67% YTD; NASDAQ closes at 4,397.93, +0.68% over last week, +3.66% MTD, +5.30% YTD, and; S&P500 closes at 1960.96, -0.10% over last week, +1.94% MTD, +6.09% YTD.
Caesars Entertainment(PBR301) to close Atlantic City Showboat property on 08/31/14, cites high property tax burden. Click here for the Caesars press release.
Dollar General(PBR153) Chairman/CEO Rick Dreiling to retire by 05/30/15. Click here for the DG press release.
Boeing(PBR30) acquires government software development & services 140 employee firm Ventura Solutions. Click here for the Boeing press release.
Thursday, June 26, 2014:
Alcoa(PBR122) acquiring UK based jet engine parts producer Firth Rixson for $2.85 billion cash & stock. Click here for the Alcoa press release.
Wednesday, June 25, 2014:
The US Dept of Commerce revises 2014 1st quarter GDP annual rate to -2.9%. Click here for the USDOC press release.
Barnes & Noble(PBR364) splitting into 2 public companies, one for retail, the other for Nook Media, by end of 1st quarter 2015. Click here for the BN press release.
Carlyle’s(PBR521) Sequential Brands Group to acquire consumer products firm Galaxy Brand Holdings for $100 million cash. Click here for the Carlysle press release.
Owens & Minor(PBR285) acquiring kits & trays producer Medical Action Industries(NASDAQ: MDCI) for $13.80/share, $208 million cash & assumed debt. Click here for the O&M press release.
The US Supreme Court rules against live streaming TV provider Aereo, says it is not just an equipment provider, but also has characteristics of cable & network TV providers like CBS(PBR176) & Comcast(PBR44). Click here for the Supreme Court press release.
AES Corp(PBR170) selling its 45% stake in Phillipine based Maisin-AES to Thailand based EGCO Group for $453 million. Click l here for the AES press release.
Tuesday, June 24, 2014:
CIT Group(PBR608) acquiring small/mid sized business financing provider & technology driven Lender Direct Capital. Terms not disclosed. Click here for the CIT Group press release.
US Dept of Housing & Urban Development reports that May sales of new homes(seasonally adjusted annual rate) was 504,000 units, April was 425,000. The May new home sales median price was $282,000, average price was $319,200. 189,000 new homes were available at the end of May(seasonally adjusted annual rate), represents 4.5 months supply. Click here for the HUD press release.
CitiGroup(PBR26) gets extension to 01/05/15 to refile acceptable capital plan with Federal Reserve Board, will not be able to increase capital distributions until plan approved. Click here for the FRB press release.
Monday, June 23, 2014:
Wisconsin Energy(PBR513) is acquiring Integrys Energy(PBR426) for $9.1 billion in cash, stock & assumed debt. Click here for the Wisconsin Energy press release.
Oracle Corp(PBR79) to acquire integrated software/hardware retail/hospitality provider MICROS for $68/share cash, $5.3 billion deal. Click here for the Oracle press release.
The Allergan(PBR392) board unanimously rejects the latest Valeant offer as grossly inadequate. Click here for the Allergan press release.
Harbinger Group(PBR431) offers $10/share, $1.1 billion cash, for Central Garden & Pet Supply(NR). Also offers alternative of $750 million cash for pet segment only. Click here for the Harbinger press release.
AMSURG(PBR1064) announces 2 stock offerings, proceeds to help consummate the $2.35 billion Sheridan Healthcare(NR) acquisition. Click here for the AMSURG press release.
Abbott Labs(PBR127) acquiring Russian pharmaceutical Veropharm for up to $495 million cash, will also assume net debt of $150 million. Click here for the Abbott Labs press release.
The A. Schulman(PBR855) board elects 22 year employee Bernard Rzepka as President/CEO, effective 01/01/15. He will replace retiring Joseph Gingo who will stay on as Chairman. Click here for the A. Schulman press release.
Saturday, June 21, 2014:
The France based Alstom board unanimously approves the General Electric(PBR9) $16.9 billion offer to form 3 joint power ventures. Click here for the GE press release.
Friday, June 20, 2014:
AbbVie(PBR142) makes 3rd offer of $54.10/share, $46.3 billion in cash & shares, for Ireland based Shire, offer is again rejected. Click here for the Shire press release.
Oracle Corp(PBR79) is buying co-browsing & screen sharing provider LiveLOOK(NR). Click here for the Oracle press release.
Thursday, June 19, 2014:
General Electric(PBR9) revises offer, announces 2 joint 50/50 ventures with France based Alstom. Click here for the GE press release.
CelGene(PBR382) stockholders approve 2:1 stock split, to occur on 06/26/14. Click here for the CelGene press release.
Wednesday, June 18, 2014:
Red Hat(PBR983) to acquire France based open source cloud computing services company eNovance(NR) for $95 million in cash & stock. Click here for the Red Hat press release.
Amazon(PBR36) announces Fire Phone, its first smartphone, $199, available exclusively on AT&T(PBR12). Click here for the Amazon press release.
Allergan(PBR392) receives another unsolicited tender offer from Valeant Pharmaceuticals(NR). Click here for the Allergan press release.
Men’s Wearhouse(PBR775) completes its acquisition of Jos. A. Bank for $65/share cash, $1.8 billion. Click here for the Men’s Wearhouse press release.
Apple(PBR6) introduces new iMac desktop computer starting at $1,099. Click here for the Apple press release.
Air Products and Chemicals(PBR260) announces that Seifi Ghasemi will become the Chairman/President/CEO on 07/01/14. Click here for the APC press release.
Tuesday, June 17, 2014:
The US Dept of HUD reports annual rate for Private Housing Starts was 1,001,000 in May, down 6.5% from April, up 9.4% from May 2013. Click here for the HUD press release.
The US Dept of Labor reports that the Consumer Price Index increased 2.1% over the past 12 months. Click here for the USDOL press release.
Actavis(PBR298) & Forest Labs(PBR595) shareholders approve $25 billion merger, expected to close mid year. Click here for the Forest Labs press release.
AES Corp(PBR170) to sell majority of its solar business to SunEdison(PBR883) for up to $207 million. Click here for the AES press release.
Monday, June 16, 2014:
SanDisk(PBR401) to acquire flash based PCIe hardware & software developer Fusion-io(NYSE: FIO) for $1.1 billion cash. Click here for the SanDisk press release.
Level 3 Communications(PBR390) to acquire tw telecom(NASDAQ: TWTC) for $40.86/share, $7.3 billion in stock & cash. Click here for the Level 3 press release.
Safeway(PBR83) makes settlement on proposed merger with Albertsons, will delist on NYSE on 07/03/14. Click here for the Safeway press release.
General Motors(PBR7) announces a new recall of 3.16 million vehicles to rework or replace ignition keys. Click here for the GM press release.
Hillshire Brands(PBR571) board withdraws merger recommendation with Pinnacle Foods(PBR778), will focus on merger with Tyson Foods(PBR87). Click here for the Hillshire Brands press release.
Walmart(PBR1) acquiring retail mobile app developer Stylr, 13th tech acquisition in 3 years. Click here for the Walmart press release.
Sunday, June 15, 2014:
Medtronic(PBR163) to buy Ireland based medical supplies provider Covidien for $93.22/share, $49.2 billion cash. Click here for the Medtronic press release.
Williams Cos(PBR363) to become 100% general partner & 50% limited partner in Access Midstream Partners(NYSE: ACMP) in $5.995 billion transaction. Click here for the Williams Cos press release.
Friday, June 13, 2014:
Priceline(PBR366) to acquire online restaurant reservations company OpenTable for $103/share, $2.6 billion cash. Click here for the Priceline press release.
The Bureau of Labor Statistics reports that the Producer Price Index for final demand for May fell 0.2% after increases in April of 0.6% and March of 0.5%. Click here for the USDOL press release.
Thursday, June 12, 2014:
US Bureau of Labor Statistics reports import and export prices rose 0.1% in May following drops of 0.5% and 1.0% in April. Click here for the USBOL press release.
Tesla(PBR882) making its patents available to other car manufacturers to help speed up low emission electric car acceptance. Click here for the Tesla blog post by CEO Elon Musk.
The US Bureau of Labor reports average employer cost per employee was $31.93/hour in March, benefits portion was $9.97(31.2%). Click here for the USBOL press release.
Wednesday, June 11, 2014:
CBS Corp(PBR176) completing its 81% divestiture of CBS Outdoors(NYSE: CBSO) through a shares exchange. Click here for the CBS press release.
Tuesday, June 10, 2014:
Allergan(PBR392) board unanimously rejects Valeant revised merger proposal. Click here for the Allergan press release.
AIG(PBR41) names Peter Hancock, currently an Exec VP, to become President/CEO, effective 09/01/14. Click here for the AIG press release.
BE Aerospace(PBR610) announces it plans to divide up into 2 separate publicly held entities, manufacturing & services. Click here for the BE Aerospace press release.
MetLife(PBR42) to repurchase up to $1 billion of its shares. Click here for the MetLife press release.
Google(PBR46) acquiring satellites provider Skybox Imaging for $500 million cash. Click here for the Google press release.
Monday, June 9, 2014:
Pilgrim’s Pride(PBR306) withdraws its offer to acquire Hillshire Brands(PBR571). Click here for the Pilgrim’s Pride press release.
Tyson Foods(PBR87) submits unilateral offer to acquire Hillshire Brands(PBR571) for $8.55 billion cash. Click here for the Tyson Foods press release.
Hillshire Brands(PBR571) confirms receipt of Tyson Foods(PBR87) $63/share offer, comments on Pinnacle Foods(PBR778) acquisition status. Click here for the Hillshire Foods press release.
Merck(PBR63) to acquire Idenix Pharmaceuticals(NASDAQ: IDIX) for $24.50/share, $3.85 billion cash. Click here for the Merck press release.
Apple(PBR6) closed Friday, 06/06/14 at $645.54/share, $92.22/share after 7:1 split, opens 06/09/14 at $92.70, closes at $93.70.
Analog Devices(PBR733) to acquire Hittite Microwave(NASDAQ: HITT) for $78/share cash, $2 billion enterprise value. Click here for the Analog Devices press release.
Family Dollar(PBR253) adopts 1 year shareholder rights plan. Click here for the Family Dollar press release.
ON Semiconductor(PBR705) to acquire image sensor provider Aptina Imaging for $400 million. Click here for the ON Semiconductor press release.
Friday, June 6, 2014:
The US Dept of Labor reports that in May nonfarm employment rose 217,000, unemployment rate remains at 6.3%. Click here for the USDOL press release.
Men’s Wearhouse(PBR775) extends Jos. A. Bank $65/share all cash offer to 06/19/14. Click here for the Men’s Wearhouse press release.
The UPS(PBR50) board has named COO David Abney to become CEO, CEO Scott Davis to retire & be non-executive Chairman, effective 09/01/14. Click here for the UPS press release.
Wednesday, June 4, 2014:
The PBR1000 May 2014 Snapshots have been emailed out to Subscribers. Click here for The PBR1000 May 2014 Snapshots Summary blog post.
The US Dept of Labor reports revised 1st qtr 2014 nonfarm labor productivity as down at a 3.2% annual rate, hours increased 2.2%, output down 1.1%. Click here for the USDOL press release.
The US Dept of Commerce reports that April exports were $193.3B, imports $240.6B, resulting in a trade deficit of $47.2B. Click here for the USDOC press release.
A. Schulman(PBR855) to buy selected majority assets of Ferro Corp(PBR963) specialty plastics business for $91 million. Click here for the A. Schulman press release.
Tuesday, June 3, 2014:
Hillshire Brands(PBR571) to talk with $55/share bidder Pilgrim’s Pride(PBR366) & $50/share bidder Tyson Foods(PBR87). Click here for the Hillshire Brands press release.
Finnish based mobile app developer Pryte announces it has been acquired by Facebook(PBR327). Click here for the Pryte website announcement.
KKR(PBR270) is acquiring 1,600 employee website & software developer Internet Brands(NR). Click here for the press release.
First Solar(PBR627) to acquire German based technology provider Skytron-Energy from AEG Power Solutions. Click here for the press release.
Dept of Commerce says new manufactured goods orders up 0.7% to $499.8B in April. Shipments, unfulfilled orders, inventories up also. Click here for the Dept of Commerce press release.
Monday, June 2, 2014:
Click here for the The PBR1000 May 2014 Breaking News Recap blog post.
Ventas(PBR705) to acquire ARC Healthcare for $2.6 billion cash/stock, & 29 Canadian senior healthcare facilities for $900 million in a separate transaction. Click here for the Ventas press release.
(The purpose of The PBR1000 is to provide a wide range of interested people with the premier key demographic, industry, financial, personnel, and comments/news briefs on over 1,000 of the largest publicly traded companies with principal offices in the US, companies that have a huge impact on the US and world economies. This information is updated monthly and published in MS Excel format as The PBR1000 Monthly Update Report. During a month several supplementary reports are published as well.
Larry C. Paxton is the President/CEO of Pax Business Resources, LLC. PBRMarketTools is the marketing research unit. For several years Larry has worked for and provided products and services to The PBR1000 companies.)
