Monday, November 9, 2009

Monday morning

US stocks opened up about 2/3rds of a percent, following the lead of international indexes. A weekend meeting of G20 economic leaders ended with an agreement to continue government stimulus to boost weak economies. The market is being led by large cap tech names Apple (AAPL), Dell (DELL) and Intel (INTC).

At the Association of National Advertisers, various execs weigh in on economic issues.
Among the steps Wal-Mart is taking to address the changes in shopping habits, Mr. Quinn listed an overhaul of the retailer’s private-label brand, Great Value, which is promoted in commercials describing how families can fix dinners with Great Value products “for less than $2 a serving.”
Eric E. Schmidt, chairman and chief executive of Google, began his speech by declaring, “We know we have begun the recovery” because searches on for terms like “restaurants” and “dancing” are increasing. “I think we should be optimistic,” he said.

Kraft sticks with it's original offer to Cadbury, and it could be a long "dance" between these tow companies.
Kraft offered 300 pence in cash and 0.2589 new Kraft share per Cadbury share, the same as a bid made public Sept. 7, the Northfield, Illinois-based company said today in a statement. As of last week’s closing prices, the bid values Cadbury at 717 pence a share, about 6 percent below the current price. The offer’s value has declined from its initial 745-pence level as Kraft shares have fallen. “I’m not sure what kind of appetite Cadbury holders have to hold on while these two slug it out for the next six months,” said William Hobbs, who helps manage 134 billion pounds in assets, including Cadbury shares, at Barclays Wealth in London. “Anything under 800 pence is still a pretty chunky discount to what we could get.”

One fan of value investing king Ben Graham suggests a few stocks he might like today
Nov. 9 (Bloomberg) -- He was a skier, bon vivant, ladies’ man, Columbia University professor, hedge-fund manager and mentor to Warren Buffett. Oh yes, Ben Graham is also considered the father of value investing. Graham, who lived from 1894 to 1976, saw stock prices as behaving like planets revolving around the sun. The intrinsic value of a stock, like the sun, acts as a center of gravity. The stock’s price can swing higher or lower but always ends up orbiting around the intrinsic value.

Harvard MBA's as a contrary indicator points to gains for the stock market
Fewer Harvard M.B.A. graduates took jobs on Wall Street this year than in the past as a result of the sharp contraction in the financial services industry. But for Ray Soifer, a former banking analyst and Harvard Business School alumnus, the reduced number of graduates flocking to Wall Street isn’t a bad thing. In fact, it may actually be a positive signal for the market

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