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1145 ET 16June2009-Roubini sees significant U.S stock market fall
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Disappointing macroeconomic news and earnings reports combined with
financial shocks from emerging markets will force a significant correction in
the U.S. stock market later this year, said economist Nouriel Roubini on
Tuesday.
Roubini, who predicted the financial crisis that has engulfed the globe in
the past two years, said a bubble in commodity prices encouraged by massive
government stimulus spending around the globe has spilled over into the stock
market.
"Right now people are not just pricing in getting out of a recession but
they are pricing in a V-shaped recovery," said Roubini at the Reuters
Investment Outlook Summit in New York. "Even part of the stock market recovery
is a bubble."
But he said that 12-year lows reached in early March when the market was
pricing in a depression would likely hold. The S&P 500 index .SPX has rallied
40 percent since then but has been treading water since early May as the market
looks for signs of a robust economic recovery.
Roubini said although some of the rally was justified as the economy
stabilizes, the 20 percent to 30 percent growth in corporate earnings that
markets are pricing in next year is probably excessive.
Reuters Messaging:rm://Edward.Krudy.reuters.com@reuters.net
1122 ET 16June2009-Talisman to buy Rift Oil for $186.8 mln
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Rift Oil Plc RIFT.L has agreed to be bought by Talisman Energy Inc
(TLM.N) (TLM.TO) in a cash deal valued at about $186.8 million.
The deal is expected to close by the second week of August.
For details, see [ID:nBNG361848]
U.S.-listed shares of Talisman were flat at $14.95.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1105 ET 16June2009 Players favor puts in Western Digital
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Put volume in hard disk drive maker Western Digital Corp (WDC.N) was 10
times the normal average daily turnover this morning with about 25,000
contracts traded vs. 1,572 calls, according to Trade Alert. Nearly all of the
volume was in the July $22.50 put strike with volume of 24,494 lots against
previous open interest of 5,233, Reuters data show.
The early flow in that strike price indicated that customers were opening
buyers at premiums of 65 to 85 cents per contract as shares traded slightly
lower near $24.50, said Trade Alert president Henry Schwartz. Western Digital's
earnings are expected after July expiration, so buyers may be positioning for a
preannoucement or some other downside catalyst, Schwartz said.
Western Digital shares fell 1.25 percent to $24.56 in late morning trade.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1052 ET 16June2009-Private equity firms shunned by Sara Lee - source
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Private equity firms are being dissuaded from bidding on Sara Lee's (SLE.N)
household and personal-care business, a source familiar with the matter told
Reuters on Tuesday.
The New York Post, citing two people close to the process, said Goldman
Sachs (GS.N), which is fielding offers for the unit, is blocking Blackstone
Group (BX.N) and Kohlberg Kravis Roberts KKR.UL from participating.
The seller wants to attract a bidder from its own sector rather than a
financial buyer, the source who spoke to Reuters said.
For details, see [ID:nN16257691]
Shares of Sara Lee fell 0.7 percent to $8.80.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net; Editing by
Kenneth Barry
1042 ET 16June2009-Syms shares surge, may close Filene's deal soon
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Shares of Syms Corp (SYMS.O) surged on Tuesday, advancing after it said it
expects to close its purchase of bankrupt retailer Filene's Basement as early
as Thursday.
"If its agreement is approved by the Bankruptcy Court, Syms expects to
consummate the acquisition of the vast majority of the current operating
Filene's Basement store leases, store fixtures and inventory on or about June
18," the company.
For details, see [ID:nN16510526]
The stock advanced 7.4 percent to $7.67.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1025 ET 16June2009-FuelCell stock sinks after news of share sale
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Shares of FuelCell Energy Inc (FCEL.O) sank on Tuesday, dropping after it
said it would sell 6.7 million common shares for $3.59 each.
The per-share price represents a discount of 18 percent to the company's
Monday closing price.
The company, which manufactures fuel-cell power plants for electric power
generation, expects to use net proceeds from the offering for product
development, project financing, expansion of manufacturing capacity and general
corporate purposes. [ID:nBNG293278]
The stock dropped 9.8 percent to $3.96.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
