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Air Industries Announces Over $1.4 Million in New Orders
Thursday April 3, 9:30 am ET
BAY SHORE, N.Y.--(BUSINESS WIRE)--Air Industries Group, Inc. (OTCBB: AIRI - News), an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry, today announced that its wholly-owned operating subsidiary, Air Industries Machining Corp. (AIM), has received over $1.4 million in new orders for original and replacement parts during the week ended March 27, 2008. A significant portion of the orders reflect AIM’s provision of landing gear and other critical flight safety assemblies.
At a Special Meeting of Stockholders on April 3, 2008, our stockholders approved an amendment to our certificate of incorporation increasing to 250,000,000 the number of shares of common stock we are authorized to issue. We also are authorized to issue 8,003,716 shares of preferred stock, including 2,000,000 shares of series B convertible preferred stock, under our certificate of incorporation, as previously amended. At the Special Meeting, our stockholders also authorized our Board of Directors to effect, at its discretion at any time not later than December 31, 2008, if at all, a reverse stock split of our common stock at a ratio within the range from one-for-ten to one-for-thirty, with the ratio and timing to be selected and implemented by our Board. The reverse stock split is part of a plan intended to enable us to obtain a listing for our common stock on a national securities exchange. If the reverse stock split is effected, the number of our authorized shares of common stock would be reduced to 125,000,000 shares. www.sec.gov
Air Industries Postpones Conference Call to Discuss Fourth Quarter and Full Year 2007 Financial Results
Tuesday April 8, 6:00 am ET
BAY SHORE, N.Y.--(BUSINESS WIRE)--Air Industries Group, Inc. (OTCBB: AIRI - News) announced today that it has postponed its conference call to review the Company’s financial results for the fourth quarter and full year ended December 31, 2007. The conference call had been scheduled to take place today, April 8, 2008, at 9:00 a.m. Eastern Time. The Company remains in the process of completing its annual report on Form 10-K with the U.S. Securities and Exchange Commission. Issuance of the fourth quarter and full year financial results press release will take place after the Form 10-K filing has been completed. Details for the rescheduling of the conference call will be available shortly.
ABOUT AIR INDUSTRIES GROUP, INC.
Air Industries Group, Inc. (OTCBB: AIRI - News) is an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry. The Company has over 35 years of experience in the industry and has developed leading positions in several important markets that have significant barriers to entry. With embedded relationships with many leading aerospace and defense prime contractors, the Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts and flight controls. Air Industries Group also provides sheet metal fabrication, tube bending, and welding services, as well as distributing specialty metals that are a critical component in the aerospace supply chain. Information on the Company and its products may be found online at www.airindustriesgroup.com.
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company’s control. Certain of the Company’s forward looking statements, with the projected backlog in particular, are formulated based on management’s extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact:
Darrow Associates, Inc.
Jordan M. Darrow, 631-367-1866
jdarrow@darrowir.com
Source: Air Industries Group, Inc.
Posted on: Friday, April 11, 2008
Airline's comeback a long shot
Aloha CEO, Inouye share views at Senate committee hearing
By Dennis Camire
Advertiser Washington Bureau
WASHINGTON — Aloha Airlines CEO David Banmiller and Sen. Daniel K. Inouye said yesterday they hope the carrier's passenger service, which shut down last week, can someday be revived.
"We still hold out hope that investors would look at resurrecting Aloha's entire passenger operation in the future," Banmiller said at a U.S. Senate Commerce Committee hearing on Hawai'i airline service.
"I hope that someday we can revive Aloha," Inouye, D-Hawai'i and the committee chair, told Banmiller after the hearing.
Banmiller cautioned that bringing back Aloha is a long shot.
"We aren't optimistic," he said. "I'm one of those people that never says never — and I think that's all I care to say right now."
It was a "sad day for Hawai'i" when Aloha shut down, Inouye said.
The state's No. 2 carrier shuttered its passenger service and laid off 1,900 workers on March 31. The closure, representing the largest layoff the state has ever seen, came after the airline lost more than $120 million in the past two years.
Aloha puts much of the blame for its failure on Mesa Air Group, owner of discount carrier go!, which is itself in financial difficulty.
Phoenix-based Mesa launched an interisland fare war with the June 2006 start of go! Since go!'s entry one-way fares between islands dropped by about half to between $39 and $49.
Mesa representatives did not testify at yesterday's hearing.
Mesa's stock dropped from nearly $8 to less than $1 per share in the past year. It traded at a 19-year low yesterday, falling 15 cents to close at 81 cents on the Nasdaq market.
mesa effect
In October, a federal judge ordered Mesa to pay Hawaiian Airlines $80 million after he found that Mesa executives misused confidential business information to launch go!
On Monday, Mesa warned investors that it could default on its bonds after the airline lost a $20 million-a-month contract with Delta Air Lines. Mesa is suing Delta to enforce the contract, which generates more than 70 percent of Mesa's annual operating revenues of $327.8 million.
Charles Willis, owner and chairman of interisland carrier Island Air, said he has been trying to determine the effect it would have on Hawaiian service if Mesa's financial problems forced it to leave the Hawai'i market.
If Mesa were to follow Aloha, ATA and Skybus into bankruptcy, the company would likely shut go!, said Willis, who was in Washington for the hearing.
"That's why I was saying to the committee about how important it is to keep the existing carriers in place and to support the local carriers," he said. "I wish I could be more specific, but the problem is, once they (Mesa) go into bankruptcy you have no idea (what will happen)."
Inouye said he would explore suggestions offered during the hearing to help the airline industry.
Many airlines are struggling with the high price of jet fuel, which has skyrocketed since January. Aloha officials have said fuel costs combined with competition from go! pushed it into bankruptcy.
James C. May, president and CEO of the Air Transport Association, an airline trade association, said just stopping the purchase of oil for the country's strategic petroleum reserve and releasing some of it — 10 million barrels or so — to the market could help restrain prices.
The group also is pushing for the Energy Department to release oil from the Home Heating Oil Reserve, which could remove the premium for jet fuel, May said.
Willis also would like to see the remaining airlines craft an interisland cooperation agreement such as the one Hawaiian Airlines and Aloha had after Sept. 11, 2001.
"That gives stabilization and I think that might be helpful," he said.
loan program
Willis said he would like to see the Hawai'i state Legislature adopt a measure now under consideration to set up a loan guarantee program for interisland airlines.
Barry Fukunaga, chief of staff for Gov. Linda Lingle, said the governor was concerned about the loan program because it did not contain a budget to allow it to be carried out. That has to be corrected before the program could be implemented, he said.
However, Lingle does support other legislation to do away with the state tax on jet fuel in the foreign trade zone, Fukunaga said.
Rep. Mazie Hirono, D-Hawai'i, a member of the House Transportation and Infrastructure Committee, said that since deregulation in 1978, the airline industry has been in a state of turmoil, illustrated by the safety concerns that have grounded hundreds of passenger jets across the country this week.
"I worry about to what extent those safety violations were inspired, at least in part, by cost-cutting considerations," she said. "One wonders whether increased regulation at the national level is warranted."
But Michel W. Reynolds, an acting assistant secretary for the Transportation Department, said he did not believe that the Bush administration would support any economic re-regulation of the airline passenger industry at this time.
Reynolds said that since airline deregulation, there have been more than 170 airline bankruptcies, averaging almost six a year.
Staff writer Rick Daysog contributed to this report.
Reach Dennis Camire at dcamire@gns.gannett.com.
Mair's Big Sky stops operating, liquidation planned
Wed Mar 12, 2008 4:38pm EDT
LOS ANGELES, March 12 (Reuters) - Big Sky Airlines, the principal subsidiary of MAIR Holdings Inc (MAIR.O: Quote, Profile, Research), ceased all operations, effective March 8, and its assets will be liquidated, the company said on Wednesday.
The decision followed Big Sky's December 2007 announcement that it was ceasing Eastern U.S. operations and would try to move its services in the West to another carrier.
The company said in a statement it concluded it was not feasible to continue operating the airline at a loss, and it expects to file a plan of liquidation with the Securities and Exchange Commission in early May. (Reporting by Deena Beasley; editing by Jeffrey Benkoe)
Mesa Airlines Demands $4.8M From MAIR
Thursday April 10, 11:51 am ET
MAIR Holdings Receives Default Notice, Demand for $4.8 Million From Mesa Airlines
NEW YORK (AP) -- MAIR Holdings Inc. said Thursday its Big Sky subsidiary has received a notice of default and demand for payment of $4.8 million from Mesa Airlines Inc.
According to a filing with the Securities and Exchange Commission, Mesa attests that Big Sky is in default of lease agreements for 10 planes. Big Sky estimates that the amount remaining due under the leases is about $4.1 million. Though the carrier ceased operating flights in March, Big Sky said in the filing that it has continued to make lease payments due to Mesa.
Mesa also said it plans to draw on the $1.9 million letter of credit that MAIR established with Mesa in 2005.
In response, MAIR and Big Sky have filed a lawsuit against Mesa in federal court contending that Mesa has not suffered any financial damages. The complaint requests, among other things, that any funds Mesa draws on the letter of credit be placed in a trust until the court determines the proper amount of damages to be awarded.
A Mesa representative was not immediately available for comment.
Big Sky Transportation Co. was the primary remaining business unit of Minneapolis-based MAIR after it sold bankrupt Mesaba Airlines to Northwest Airlines Corp. last year. MAIR said in December it planned to liquidate itself.
MAIR shares rose 3 cents to $3.29 in morning trading. Mesa shares tumbled 7 cents, or 7.3 percent, to 89 cents, after hitting a new low of 85 cents earlier in the session.
Thursday, April 10, 2008 - 4:35 PM MST
Mesa Air's stock hits new 52-week low
The Business Journal of Phoenix - Pacific Business News
Mesa Air Group Inc.'s stock continued to drop Thursday, down almost 16 percent to close at 81 cents and setting a new 52-week low.
The company (Nasdaq:MESA) had just set a new 52-week low on Wednesday, at 96 cents.
The Phoenix-based company has asked shareholders to approve a plan to issue up to $37.8 million in stock to pay off debt. It stands to lose $20 million a month in revenue if its agreement with Delta Air Lines is terminated, Mesa said in a filing with the Securities and Exchange Commission.
Delta notified Mesa two weeks ago that it wanted to terminate its Delta Connection agreement because of Mesa's failure to maintain a specified completion rate through its subsidiary, Freedom Airlines.
UN: Rising Food Prices Likely to Persist
Friday April 11, 10:47 am ET
By Marta Falconi, Associated Press Writer
UN Food Agency Says Soaring Food Prices Likely to Persist
ROME (AP) -- Soaring food prices that have sparked unrest around the world are likely to persist despite an expected increase in production, threatening millions of people worldwide who live on a dollar or less a day, a U.N. agency said Friday.
Prices of bread, rice, milk, oil and other basic foodstuffs have sharply increased in the past months in many developing countries, according to a report by the Rome-based Food and Agriculture Organization. Prices of wheat and rice have doubled compared with last year, while those of maize are more than a third higher.
Cereal prices have risen as a result of steady demand, especially from China and India, supply shortages and new export restrictions, FAO said.
Even though world cereal production is expected to increase this year by 2.6 percent to a record 2.16 billion tons, experts say this is going to have little impact on the prices.
"All indications we have is that this is not a short-term effect ... where the first year you have price increases and the following year there is an increase of supply that brings the prices down," FAO Director-General Jacques Diouf said at a news conference.
Experts say price speculation and market failures will likely reduce the effect of increased production.
However, the "Crop Prospects and Food Situation" report says that expected growth in production, especially in wheat and rice, could at least ease the tight supply situation worldwide.
FAO said that farmers in developing countries should be granted better access to fertilizers, seeds and animal feed to increase local food production.
Surging food prices, further stoked by rising fuel costs, have triggered protests around the world in recent days. The increases hit poor people hardest, as food represents as much as 60-80 percent of consumer spending in developing nations, compared with about 10-20 percent in industrialized countries, the U.N. agency said.
Two days of rioting in Egypt this week killed one person. Violence wracked Haiti, where demonstrations over rising food prices led to looting and clashes with police.
In Pakistan and Thailand, army troops have been deployed to prevent seizing of food from fields and warehouses, the agency said.
"People are dying because of their reaction to the situation. People will not be sitting dying of starvation, they will react," Diouf said.
Thursday, April 10, 2008 - 11:51 AM EDT
Atlantan Jermaine Dupri to head P&G-Def Jam hip-hop label
Atlanta Business Chronicle
Procter & Gamble Co. has partnered with record label company Island Def Jam Music Group to launch a music company tied to its TAG men's deodorant and body spray.
Jermaine Dupri, an Atlanta-based rapper and music producer, will act as president of the New York-based venture and will play a key role in identifying and developing its musical talent.
The label, called TAG Records, is an effort by the brand to connect with the urban market by providing opportunities for aspiring hip-hop talent. Those artists will merge their music with brand marketing for TAG, and will be promoted through a multimillion-dollar campaign, including television, print, radio, computer and event marketing.
"Today, we make history in the music industry with TAG Records," Dupri said in a press release. "This label is going to provide new artists with a chance of a lifetime. New artists will receive 10 times the typical marketing support - a first in the industry. I'm hand-selecting and molding these artists to make history in hip hop."
The first artist will be announced in May. In addition to an album release, TAG will showcase the artist and Dupri across various TAG brand advertising and marketing programs throughout the year.
"We're confident the partnership will make a positive impact and bring opportunities to undiscovered urban creativity and vision," Alex Keith, general manager of P&G Deodorants, said in the release.
While the record label is unique, it is not Cincinnati-based P&G's first effort to partner with the entertainment industry to promote its brands. It has, for instance, partnered with several reality show programs, including "America's Top Model" and "Survivor."
P&G (NYSE: PG) is the world's largest consume products maker, with brands including Charmin, Crest and Tide.
ZURICH, April 11 (Reuters) - Novartis AG's (NOVN.VX: Quote, Profile, Research) Aclasta was more effective than Procter & Gamble Co's (PG.N: Quote, Profile, Research) Actonel in increasing bone mass in patients with the bone-thinning disease osteoporosis, a study showed.
A once-yearly infusion of Aclasta showed benefits versus the daily pill Actonel, also known as risedronate, in patients taking steroids, which are widely used to treat inflammatory conditions but can cause bone loss and osteoporosis, Novartis said.
The results, from a study of 833 men and women, were presented on Friday at the European Congress on Clinical and Economic Aspects of Osteoporosis and Osteoarthritis in Istanbul.
Data also confirmed Aclasta, which is approved for use in the United States and Europe, was comparable to Actonel in important safety issues, including kidney impairment and delayed healing of fractures, and was generally safe and well tolerated, Novartis said.
U.S. regulators have warned that patients treated with a widely used class of osteoporosis drugs known as bisphosphonates, including Aclasta and Actonel, may develop severe and sometimes disabling pain in muscles, joints and bones.
The Food and Drug Administration is currently conducting a review of the class of drugs, which also includes Merck & Co Inc's (MRK.N: Quote, Profile, Research) Fosamax and Boniva from Roche Holding AG (ROG.VX: Quote, Profile, Research) and GlaxoSmithKline Plc (GSK.L: Quote, Profile, Research). (Reporting by Sam Cage, editing by Will Waterman)
Leave Bedroom Allergens High and Dry This Spring!
Thursday April 10, 8:02 am ET
Procter & Gamble Partners With Asthma and Allergy Foundation of America To Combat Allergens in the Bedroom
CINCINNATI, April 10 /PRNewswire-FirstCall/ -- This spring, Procter & Gamble is partnering with the Asthma and Allergy Foundation of America (AAFA) to educate consumers about combating indoor allergens by honing in on the area where Americans spend one third of their lives: the bedroom.
"Many people overlook the bedroom as a significant problem area for indoor allergens," said Mike Tringale, director of external affairs at AAFA. "Many allergens hide inside pillows and bedding as well as on curtains, the walls and on electronics like your alarm clock. Your bedroom can be a hot spot for allergens and it's important to know the proper tools and techniques to help you combat them effectively."
The AAFA has offered the following tips to help reduce allergens in the bedroom this season:
Beds and Bedding: Use only washable materials on the bed. Look for special mite-proof bedding and encasements. Wash bedding, pillows and stuffed toys weekly in hot water (130 degrees F). In between washing, consider spraying comforters, bedding and other soft surfaces with Febreze Allergen Reducer® Fabric Refresher, which reduces up to 75 percent of allergens from cats, dogs, and dust mites that may become airborne.
Air Control: Keep humidity levels at 50 percent or lower by using a room air filter or dehumidifier. This will significantly help reduce the levels of allergens in the air as dust mites need high humidity to live and grow. Take special care to clean air conditioners and humidifiers frequently with a weak bleach solution (one cup bleach in one gallon water) to prevent mold growth.
"Dust Magnets": The less furniture and decorative material in the room, the better. Stacks of magazines, fancy artwork, bookcases and window draperies are considered ideal locations for dust mites. If such decorations are a must, clean those areas regularly to avoid clutter and control dust build-up. Dust the bedroom frequently with a product like Swiffer Dusters® to remove dust, dirt and allergens from cats, dogs and dust mites. Swiffer Dusters trap and lock the household allergens that gather on hard surfaces like bookshelves, ceiling fans, walls and electronics, instead of just spreading the dust around like traditional feather dusters.
Closets and Drawers: Dust, cat dander and other allergens that stick to your clothing can accumulate in your closets and drawers over time, so always wipe yourself off after coming in from the outdoors or holding pets. Wash clothing more frequently during the spring as well, to minimize allergen build-up.
To educate consumers about indoor allergens, Febreze Allergen Reducer and Swiffer Dusters will exhibit a "Bedroom Sanctuary Series" at the Los Angeles NEI Health and Lifestyle Expo from April 12 -13 and Seattle's K5 Healthy Living Expo April 19 - 20. Laura Dellutri, cleaning expert and author of the books "Speed Cleaning 101" and "White Couch with Kids!?" will be touring with Swiffer and Febreze to answer questions and provide professional expertise on how to properly manage allergens in the home.
"P&G is committed to educating consumers about improving the quality of their lives," said Susan Baba, external relations manager for Swiffer. "Swiffer Dusters and Febreze Allergen Reducer are great solutions to help reduce and remove indoor allergens that are hiding in the home, especially in the bedroom."
Please visit www.aafa.org, www.febreze.com and www.swiffer.com for more information and tips on how to reduce these allergens in the home.
About AAFA
The Asthma and Allergy Foundation of America is the leading nonprofit consumer and patient organization fighting asthma and allergic diseases. AAFA provides free information to the public, offers educational programs to consumers and health professionals, leads advocacy efforts to improve patient care, and supports research to find cures.
The Allergen Hot Spots program is made possible by an unrestricted educational grant from Procter & Gamble.
About Procter & Gamble (NYSE: PG - News)
Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®, Bounty®, Dawn®, Pringles®, Folgers®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®, Actonel®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, and Braun®. The P&G community consists of over 135,000 employees working in over 80 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
Source: Procter & Gamble
April 9 (Reuters) - Goldman Sachs downgraded Kimberly-Clark
Corp (KMB.N: Quote, Profile, Research), the maker of Huggies diapers and Kleenex tissues, to "sell" from "neutral," citing the company's exposure to cost inflation that could pressure its earnings in 2008.
Goldman said Kimberly-Clark's diaper business is still
healthy, particularly overseas, though there were increasing
concerns about share erosion to P&G in the US based on the
brokerage's discussions with retail buyers.
The brokerage also downgraded both Procter & Gamble Co
(PG.N: Quote, Profile, Research) and Bare Escentual Inc (BARE.O: Quote, Profile, Research) to "neutral" from
"buy."
The brokerage in a research note said it cut P&G due to its
slowing sales growth even after significant investment to
broaden the portfolio.
On Bare Escentual, it said long-term story looks
attractive, but in the short term, "investors are likely to
remain on sidelines for a small-cap growth stock with exposure
to discretionary consumer spending."
Goldman, however, maintained its "attractive coverage"
rating on the U.S. household products sector, citing its
defensive nature in a weak U.S. economy and said it expects the
sector companies to beat consensus on emerging market growth
and foreign exchange benefits.
Goldman also said coverage of the sector will now be
assumed by Andrew Sawyer, who is replacing Amy Chasen.
Frontier Airlines files for bankruptcy protection
By Catherine Tsai
Associated Press
Article Launched: 04/11/2008 05:29:11 AM PDT
DENVER - Frontier Airlines sought bankruptcy protection today, the fourth carrier to do so in the past two weeks as exorbitant fuel prices eat into earnings and a weak U.S. economy keeps more people grounded.
Frontier says it will continue operations as it reorganizes.
The low-fare carrier said it was forced into bankruptcy after its principal credit card processor said it would begin withholding a greater share of proceeds from ticket sales.
The Chapter 11 filing in U.S. Bankruptcy Court in New York prevents the credit card processor from increasing its "holdback," Frontier CEO Sean Menke said.
"By filing for Chapter 11, we will now have the time and legal protection necessary to obtain additional financing and enhance our liquidity. Fortunately, we believe that we currently have adequate cash on hand to meet our operating needs while we take steps to further strengthen our company," Menke said in a statement.
ATA Airlines, Skybus and Aloha Airgroup all have filed for bankruptcy in the past two weeks, but Menke said Frontier's reasons for doing so were different.
"Unfortunately, our principal credit card processor very recently and unexpectedly informed us that, beginning on April 11, it intended to start withholding significant proceeds received from the sale of Frontier tickets," he said. "This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier's liquidity and would have made it impossible for us to continue normal operations."
He said Frontier Holdings Inc. was prepared to litigate, if necessary.
The creditor listed in bankruptcy court documents as having the largest general unsecured claim against Frontier by far was Wells Fargo, with $93.5 million. Frontier said it had fewer than 50 creditors.
At the end of last year, Frontier said, it had assets of $98.3 million and debts of $92.2 million.
A Frontier spokesman said earlier this week the airline had "no concerns about bankruptcy" but added that it was working on strengthening its cash position.
Last month, Frontier said it had agreed to sell four planes to counter rising fuel costs.
Frontier opened in 1994 with less than 200 employees and two planes that flew between its home base of Denver and three cities in North Dakota.
The airline now has about 350 flights to dozens of cities and employs about 6,000 people.
Menke took over Frontier last year and said the airline, like other struggling in the rough economic climate, would seek to boost revenues in new ways.
Menke said earlier this year that he would look into a la carte pricing, charging more for specific services.
Frontier competes with Delta Air Lines, Northwest Airlines, American Airlines, United Airlines and Southwest Airlines. Almost all of the carriers have sought new revenue sources, such as additional fees for checking a second bag.
Frontier shares lost most of their value in premarket trading today, tumbling $1.27 to 30 cents each.
Schatz Nobel Izard P.C. Files Class Action Lawsuit Against MoneyGram International, Inc. -- MGI
Friday April 11, 1:04 am ET
HARTFORD, Conn., April 11, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it has filed a lawsuit seeking class action status on behalf of all persons who purchased the common stock of MoneyGram International, Inc. (``MoneyGram'' or the ``Company'') (NYSE:MGI - News) between January 24, 2007 and January 14, 2008, inclusive (the ``Class Period''). The action is pending in the United States District Court for the District of Minnesota at docket number 08-cv-1026.
The Complaint alleges, inter alia, that MoneyGram and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company's business and financial results. It is alleged that throughout the Class Period, defendants knew but concealed the following facts from the investing public: (i) MoneyGram lacked requisite internal controls to ensure that the reserves for the Company's investments in asset-backed securities were adequate, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts; and (ii) MoneyGram concealed the extent of its potential losses arising from its exposure to asset-backed securities containing uncollectible debt.
On January 14, 2008, MoneyGram announced that it had completed a valuation of its investment portfolio and had experienced additional net unrealized losses of $571 million as of September 30, 2007, bringing its cumulative net unrealized losses to $860 million. In addition, the Company announced it had needed to obtain amendments and waivers under its credit agreements. On this news, MoneyGram's stock declined to as low as $5.66 per share before closing at $6.15 per share on January 15, 2008, a one-day decline of 50%.
Later, on March 25, 2008, MoneyGram disclosed that the SEC had launched an investigation into its financial statements, reporting and disclosures related to its investment portfolio.
If you purchased MoneyGram common stock during the Class Period, you may, no later than May 27, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com. To view a copy of the complaint filed by Schatz Nobel Izard P.C. or for more information about class action cases and Schatz Nobel Izard, please visit our website: http://www.snilaw.com.
Contact:
Schatz Nobel Izard P.C.
Nancy A. Kulesa
Wayne T. Boulton
(800) 797-5499
firm@snilaw.com
www.snilaw.com
Source: Schatz Nobel Izard, P.C.
Tech Quartet Sounding Good
David Penn, TradingMarkets 04.10.08, 12:47 PM ET
Technology stocks may or may not be the best investments right now. But here are four tech stocks that short-term traders can look to that are likely to outperform the average stock over the next few days.
Seasonality experts from Yale Hirsch to Jim Cramer tell us that the time to buy tech stocks as an investment is in the summer, when technology stocks, along with most of the market, tend to be on the sleepy side. The theory calls for buying these overlooked equities in the summer and selling them as they rally into either back to school season in the fall or, if it's a good year, the holiday shopping season in the winter.
But for short-term traders, there's no reason to wait for the weather. Because of the wide universe of names and the types of businesses they run, just about any day may be a great day to trade tech stocks.
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And that includes the next five to eight days.
Click here for "Five Low-Risk Canadian Stocks," a free special report from The Canada Report.
As of late in trading on Wednesday, April 9, a number of stocks have had their Short Term PowerRatings upgraded, reflecting even greater potential for gains in the near term.
Some people misunderstand what we mean when we refer to stocks becoming more attractive as they move lower, confusedly thinking that this could potentially apply to all stocks.
This is wrongheaded. When we refer to stocks becoming more attractive as they move lower, this is always in the context of the stock trading above its 200-day moving average. We say it all the time. But it is an important point that apparently still bears repeating.
Strong stocks, stocks that are trading above their 200-day moving averages become more compelling as short-term trading candidates as they move lower and closer to that 200-day moving average. Stocks that pull back to the 200-day moving average are regressing to the mean.
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Our strategy is to look for stocks that are very extended from this mean, usually by rallying far above it, and to buy those stocks as they move closer to the mean.
Below are four stocks, all from the technology sector, that are now in the midst of those regressions to the mean. All four have earned Short Term PowerRatings upgrades as of late in the trading day on Wednesday, with one stock being upgraded from a thoroughly average six all the way to eight.
Axsys Technologies (nasdaq: AXYS - news - people ). Short Term PowerRatings upgrade from 8 to 9. RSI(2): 2.50
Actel Corp (nasdaq: ACTL - news - people ). Short Term PowerRatings upgrade from 8 to 9. RSI(2): 7.53
Dionex Corp (nasdaq: DNEX - news - people ). Short Term PowerRatings upgrade from 7 to 8. RSI(2): 10.30
Veeco Instruments (nasdaq: VECO - news - people ). Short Term PowerRatings upgrade from 6 to 8. RSI(2): 11.95
Our research found that stocks with Short Term PowerRatings of 8 outperformed the average stock by a margin of more than 8 to 1 within the next five days. Stocks with Short Term PowerRatings of 9 fared even better, besting the average stock by a margin of more than 13 to 1 over the same time period.
David Penn is senior editor at TradingMarkets.com. Click here for Today's Top 25 Stocks from TradingMarkets.com.
American Cuts More Flights; Fliers Fume
Friday April 11, 9:48 am ET
By Harry R. Weber, AP Business Writer
American Airlines Cancels More Flights Friday As Costs Add Up for an Industry Already Reeling
ATLANTA (AP) -- Air traveler angst was sure to continue Friday as American Airlines grounded hundreds more flights. The financial toll and loss of goodwill likely would grow as well, as the inspection-related mess spread further to other carriers and hurt an industry already bleeding cash thanks to high fuel costs.
Lawmakers were asking questions and some fed-up air travelers headed for trains. Others gave the airlines a pass, saying the companies were doing the best they could.
"If somebody's got a choice between being in a plane crash and being late, is there a choice?" Jane Bernard, a writer from New York who was delayed by at least three hours en route from LaGuardia Airport to Miami, said Thursday.
Mingo Valencia, a 60-year-old stuck at Hartsfield-Jackson Atlanta International Airport while heading home to Midland, Texas, wasn't so gracious.
"Poor management," he said bluntly.
Congress also weighed in Thursday. The Federal Aviation Administration official who ordered safety audits last month, Nicholas Sabatini, faced tough questions from a Senate subcommittee about the agency's lax oversight of airlines and his own accountability for recent breakdowns. The FAA noted that airlines had 18 months to check electrical wiring on MD-80 jets since an initial order was issued in September 2006.
American, a unit of Fort Worth, Texas-based AMR Corp., canceled another 595 flights Friday, bringing this week's total to nearly 3,100 due to safety inspections of its MD-80s. The carrier said disruptions will continue through Saturday as it works to comply with the federal safety order.
Alaska Airlines, Midwest Airlines and Atlanta-based Delta Air Lines Inc. joined the wave, each canceling a small number of flights on MD-80 aircraft Thursday.
At least 250,000 passengers have been affected by the American cancellations this week alone.
Other carriers like Continental Airlines Inc., JetBlue Airways Corp., AirTran Airways and Northwest Airlines Corp. said they passed the first round of FAA audits with a clean slate and did not expect extra maintenance work or flight delays. It was impossible to say whether that could change since the FAA is conducting another round of safety audits.
The cancellations come at a time of high fuel prices and mixed success among the major air carriers at getting domestic fare increases to stick. The fact that airplanes are flying very full is making it difficult for airlines that cancel flights to find empty seats on other carriers to rebook their passengers.
"This disruption is severe," said Webster O'Brien, an industry expert with aviation consulting firm Simat, Helliesen & Eichner. "People are going to be unhappy. There isn't going to be an easy way to walk everybody out of it."
American CEO Gerard Arpey said Thursday that the cancellations will cost the airline "in the tens of millions of dollars." Analysts say the toll could easily be that, and perhaps much more.
Besides lost revenue from the canceled flights, American also was giving $500 travel vouchers to an unspecified number of inconvenienced passengers and putting some travelers up in hotels. There also could be transportation costs to and from hotels, extra overtime for employees and the long-term costs of losing goodwill among customers.
American spokeswoman Andrea Huguely said the cost probably wouldn't be known until Saturday night, when the carrier expects to have all its MD-80s back in service.
The cost to other airlines also was unclear, and the pain could continue, analysts said.
"Just given the level of scrutiny, it wouldn't surprise me if there were more cancellations and groundings at other airlines," said Standard & Poor's analyst Philip Baggaley.
He said the disruption was worse than some major storms that have affected large airline hubs.
"The costs are fairly substantial," Baggaley said. "Given that the cancellations have been spread among a number of carriers, this will make it harder for airlines to turn around and try to raise fares, particularly in the weakening economy. It does indeed come at a bad time."
Some travelers looked for other modes of transportation.
Amtrak has seen a spike in passengers since the flight cancellations began earlier in the week, especially in the Northeast, spokesman Cliff Cole said.
"Our ridership was heavy yesterday, is heavy today and is likely to be heavy tomorrow, based on our reservations," Cole said Thursday.
Greyhound Lines Inc. spokesman Eric Wesley said he was unsure whether demand had increased because many bus customers buy tickets at the last minute.
Associated Press writers David Koenig in Dallas, Adam Schreck and Warren Levinson in New York, and Johnny Clark in Atlanta contributed to this report.
Good idea. Why didn't I think of that! lol
Haha. That's great! Welcome aboard, it is a pleasure. Adobe looks like a real winner. The products are quite reliable and helpful imho.
American Air may need days to get back to normal
Thu Apr 10, 2008 5:21pm EDT
By John Crawley
WASHINGTON, April 10 (Reuters) - American Airlines may need several more days to restore normal operations after renewed wiring inspections of its MD-80 fleet forced the cancellation of nearly 2,500 flights this week, the company's chief executive said on Thursday.
Gerard Arpey also said the carrier had unsuccessfully asked the Federal Aviation Administration for an alternative to grounding the planes, because it did not believe the problem posed an imminent safety threat.
The unit of AMR Corp (AMR.N: Quote, Profile, Research) grounded its entire stable of nearly 300 MD-80 medium-range airliners on Tuesday. The disruption has affected more than 100,000 passengers and wreaked havoc with its operations at big airports like Chicago and Dallas.
Arpey apologized to passengers and said he had no doubt American operates safely. "I put my kids on these airplanes all the time," he told a conference call with reporters.
Delta Air Lines Inc (DAL.N: Quote, Profile, Research) and Alaska Airlines Group (ALK.N: Quote, Profile, Research) canceled a few dozen flights combined over the same issue with their MD-80s.
Arpey said American is trying "to stay ahead" of the problem and it could take "several more days to get back up to speed."
The inspections relate to a 2006 FAA order to ensure that wiring in the MD-80's right wheel well is properly installed and secured to guard against electrical shorts and fire. Continued...
http://www.reuters.com/article/marketsNews/idINN1047861920080410?rpc=44
Shares issued to FDS.
http://pinksheets.com/edgar/GetFilingHtml?FilingID=5859373
THE FRENCH WATER COMPANY, SUEZ ENVIRONNEMENT, HAS ANN0UNCED A NEW CHINA WATER PARTNERSHIP, by KATHY SHANDLING: 10/04/2008 (MaximsNews Network)
UNITED NATIONS - / MaximsNews Network / 10 April 2008 -- Suez Environnement is expanding its presence in China. According to the China Daily, Suez Environnement and their Hong Kong partner, New World Services, will be assuming a 15% stake in the Chinese water company – Chongqing Water Group (CWG). The cost of this investment – approximately 1.5 billion yuan.
CWG operates 32 water treatment plants and 35 wastewater facilities in Chongqing, providing services to about 8.4 million people.
The Suez Group already has two other joint ventures in the region. A 60-40 joint venture with Chongqing Water Holding Group was set up in 2002, referred to as Chongqing Sino French Water Supply. It provides drinking water to approximately 1 million residents in the region. It also services the local industrial and commercial community.
The other Suez joint venture is the Chongqing Sino French Tangjiatuo Sewage Treatment Plant. It is a 50-50 partnership with Chongqing Water Holding Group. It provides service to about 1 million residents in the region.
The first venture was set up in 2002; the second venture was established in 2007.
http://www.maximsnews.com/news20080410suezchinashandling10804100801.htm
News out ... iBox updated
What are your thoughts? TIA
China bets it money no nation will boycott Olympics
Sumit Pande / CNN-IBN
TimePublished on Thu, Apr 10, 2008 at 17:06, Updated at Thu, Apr 10, 2008 in World section
MONEY WINS: No one would want to hurt their economic interests as top brands sponsor the games.
Shanghai: The Olympic Games provide an opportunity to a country to showcase itself to the world. In China’s case, it is perhaps all the more important, as it wants to present to the international community its development in the post-Mao era.
Shanghai’s magnetic Maglav Train can be seen as representing the speed of the economic development in China. At 431 km/hr, it is the fastest-running public transport system in the world. the working of the fastest running public transport system in the world.
On the surface and in the sky, in all its major cities, the Chinese workforce chisels the 2008 Olympic dream as now, final touches are being given to the Olympic facilities.
Gigantic structures have come up across Beijing's skyline, including the one called the Water Cube, where all the aquatic events would be held.
The Nest is where the Opening Ceremony of the games would be held, when Beijing will be host to 1 million sports-lovers and 20,000 journalists from across the world in the month of August.
Despite protests across the world, somewhere down the line, the Chinese leadership seems assured that there would not be any boycott like the 1980 Moscow Olympics. The Olympics, now, are as much about sports as they are about commerce.
With top US and European brands sponsoring the games, no one would want to hurt economic interests in world's largest market.
"Out of the commercial interest, no government will boycott the games," said Wen Hei Daily’s Senior Editor, Lee Baokang.
It’s clear that in the changed economics of the world, politics takes the back seat.
http://www.ibnlive.com/news/china-bets-it-money-no-nation-will-boycott-olympics/63049-2.html
NLT 16 APR 2008. jmho
Agree 100%. I never pay much attention to quarterly reports because they are unaudited. We expect the audited 2007 annual report to be filed within a few days. JMHO GLTA.
...Before we explore the WM/TPG transaction, we relate a few reader comments about last week's profile of Fremont General (NYSE:FMT), the troubled CA industrial loan company ("Fremont General Corp: Welcome to the Subprime Dead Pool").
James at the Office of Thrift Supervision writes that "FMT's primary regulator was the FDIC. FMT did not have a federal thrift charter and OTS had no regulatory role with FMT. For the record OTS has a very good record with respect to dealing proactively with subprime lending risks over the last few years."
Point taken and copy corrected.
Of note, a number of our friends at OTS have been in touch recently to talk about creating advanced analytics metrics to support safety and soundness. Indeed, OTS has some of the best interest rate and credit analytics in the regulatory community. We just wish OTS would shed the belief that thrifts are "special" and publicly release all of the data provided in the Thrift Financial Reports.
Specifically, the OTS refuses to release specific loan category and aggregate loan maturity data for thrifts, ostensibly for competitive reasons, and this even though such data is publicly available for all commercial banks! By withholding this data from analysts, the OTS makes it impossible to calculate WAMs of thrifts like WM for Basel II benchmarks, including the profiles in The IRA Bank Monitor.
Memo to James, Tom, Michael, et al at OTS: Surrender the loan maturity data!
Bob Feinberg writes that "The reason why the FDIC came down on FMT is some combination of the fact that banks want to get rid of ILCs any way they can, and the FDIC wants to maintain some vestige of credibility as a regulator. Applying Prompt Corrective Action to a bank that's not a member of 'the club' is a safe way to do that. It shows how PCA would work if the regulators actually did it, but the chances of regulators regulating banks are about the same as the chances that a kangaroo will play the tuba."
While regulators may be shy about applying PCA to mainstream banking institutions, especially banks with big lobbyists and PAC war chests, the folks at TPG certainly seem to be unafraid of "prompt" deal doing, even though banks like WM are, in our view, just beginning to enter the most serious period of credit losses. Could WM be the next Bear, Stearns (NYSE:BSC)?
Is TPG's Dave Bonderman, a former WM director, trying to come to the aid of the besieged WM management team before the widely anticipated April 15 AGM? Reading through the decidedly defensive management presentation in the WM proxy, it strikes us that this may be a particularly difficult meeting for WM Chairman and CEO Kerry Killinger. We hear that one of the heavy hitters of the financial crisis management world just canceled all engagements next week to be in Seattle, equipped with requisite fire control apparatus.
The reasons for the growing crisis at WM are self evident, at least to us. At the end of 2007, WM's lead unit reported ROA of just 0.08% and ROE of 1.04%, significantly below peer and even below ING Bank FSB, the perennial laggard among large thrifts. For the same period, WM reported 94bp of loan charge offs, 1.7 standard deviations above its peer group average of 32bp.
A big reason for the divergence from the peers is the 1,000bp or 10% of defaults thrown off by the subprime credit card business acquired by WM in 2005 when it purchased Providian National Bank. Click here to see a chart of the aggregate loan default activity for WM and its asset peers going back to 1989. Note the sharp departure by WM from peer loan default experience since the close of the Providian transaction.
Eric Dash of the New York Times reported Monday that WM expects "a sharp increase in loan charge offs" in its credit card business. So do we. In fact, just ponder where WM's credit card business will be at the end of 2008 given current default experience and the trend since 2005, a period when bank default rates were at historic lows. In September of 2005, just before the acquisition by WM closed, Providian National Bank reported only 767bp of charge offs, suggesting that the business has deteriorated significantly since coming under WM management. More, the Loss Given Default for Providian in Q3 2005 was just 84%, quite respectable for a subprime lender, vs. 95% at year-end 2007 under WM management just two years later. Yuk!
Q: Do you think that Mr. Bonderman, the expert TPG deal team, or the other investors participating in the $7 billion capital raise reviewed the historical experience for the Providian business as part of their deal diligence? Do you think any of them know that WM's small credit card portfolio has one of the highest default rates in the industry? By comparison, GE Money Bank, the subprime unit of General Electric (NYSE:GE), reported 482bp of default in 2007 or half that of WM's rancid credit card book.
The Economic Capital model in The IRA Bank Monitor projects a Maximum Probable Loss of 171bp for WM's aggregate loan book in 2008, but as with most banks, this estimate reflects low default rates over the past several years. We expect the MPL for WM to rise as 2008 progresses. More ominous, while WM's EC to Tier One Risk Based Capital ratio calculated by The IRA Bank Monitor comes in at just 0.48:1, on its face an indicator of low risk, this result is a significant increase vs. 2006, and suggests that the WM risk profile is deteriorating.
Nearly 50% of the WM EC factor as of 2007 is driven by the bank's investment portfolio. In 2006, the EC factor for WM's securities portfolio was actually negative, but now it accounts for more than $4 billion of the $10.9 billion in Economic Capital calculated by The IRA Bank Monitor. The trend in EC illustrated by The IRA Bank Monitor simulation is as important as the absolute amount calculated. The shift in visible risk factors may suggest some movement in underlying, invisible factors. Thus we wonder: why did the folks at TPG decide to pull the trigger now?
We fear that the answer may be that, like Joseph Lewis' investment in BSC at the end of 2007, veteran deal makers like TPG are suffering from near-sightedness, a sort of risk myopia that comes from spending too many years operating in the bubble. Smart, self-confident bankers of a certain vintage just can't seem to accept that there may be no near-term bounce in 2008-2009. Go back and re-read our interview with Josh Rosner this week.
As we have noted in the past, the big weakness of the WM business model is dependence upon non-core funding to support its $370 billion in lead bank assets. WM's ratio of core deposits to total assets slipped nearly 10 points to 57% at the end of December vs. 67% a year ago. Like BSC, WM seems to be suffering from slow erosion on confidence among institutional depositors. Unlike, BCS, however, WM has access to funding from the Federal Home Loan Banks. Advances are now equal to 20% of total assets vs. 12% a year ago.
Despite our critical analysis, we'd be happy if we could tell you that WM is going to be fine and that the end of the meltdown in financials is clearly in sight. But frankly, each time we look at the bank loan default data and the considerable distance still left to go before we arrive at 10-year average levels, the more convinced we are that the bottom of the concrete containment building is still a long, long way off. Pass the iodine tabs please....
http://seekingalpha.com/article/71662-is-wamu-the-next-bear-stearns
Thursday, April 10, 2008 - 8:04 AM EDT
Millennium to be acquired by Takeda Pharmaceutical
Boston Business Journal - Boston Business Journal
Biopharmaceutical firm Millennium Pharmaceuticals Inc. is in an agreement to be acquired by Japanese drug maker Takeda Pharmaceutical Co. Ltd. in a deal valued at $8.8 billion.
The agreement calls for Cambridge, Mass.-based Millennium (Nasdaq: MLNM) to be taken private through a cash tender offer of $25 per share and become a wholly-owned subsidiary of Takeda as a standalone business unit. Millennium will be known as Millennium Pharmaceuticals Inc., a Takeda Company, according to a statement from the firms.
The transaction was unanimously approved by the boards of directors of both companies.
Millennium is best known for its product Velcade, a treatment for some types of cancer.
If you are up 25% take the money and run imho. lol
What Is This Thing Called "Me"?
Part 10: The Temporally Synchronized, Binary, Organic Living Engine
by Daniel J. Schneck
March 2008 - American Laboratory
The human body has a sophisticated, delicately balanced, coordinated, and synchronized hierarchy of operating time scales, each intended to satisfy specific physiologic needs of the organism. Interestingly, these time scales are correlated almost one-to-one with corresponding levels of organization of the human body. Thus, their specific ranges can be conveniently classified as encompassing:
-10^-6 to 10^-3 sec: Atomic/molecular enzyme kinetics (biochemical catalysis). For example, consider the activity of the red blood cell enzyme carbonic anhydrase, ...
see iBox for the full article.
www.americanlaboratory.com
Not good...
Tuesday, April 8, 2008 - 10:10 AM PDT
KLA-Tencor plans to buy Belgian company
Silicon Valley / San Jose Business Journal
KLA-Tencor Corp. said Tuesday it launched a tender offer for ICOS Vision Systems Corp.
The San Jose-based semiconductor testing equipment maker (NASDAQ:KLAC) said the bid price is the equivalent of about $57.33 per share, $51.46 for each 2002 warrant and $8.80 for each 2007 option.
Leuven, Belgium-based ICOS makes inspection equipment for semiconductor packaging and other uses. The tender offer ends May 19.
KLA-Tencor said it expects the transaction to close in the second quarter of this year.
The transaction will takes place only if it meets certain conditions "including the offer acceptance by holders of at least 85 percent of ICOS's outstanding shares, not distributing any new dividend before the completion of the bid and the absence of any material adverse change with respect to ICOS," the company said.
Tyco Electronics Earnings Conference Call (Q2 2008)
Scheduled to start Thu, May 1, 2008, 8:30 am Eastern
http://biz.yahoo.com/cc/7/91177.html
Sweet Deal For Honeywell
Carl Gutierrez, 04.09.08, 2:05 PM ET
Supply contracts don't normally make news, but Honeywell International's $23 billion deal with Embraer was too big to ignore.
After the market closed on Tuesday conglomerate Honeywell International (nyse: HON - news - people ), announced it won a $23 billion contract to supply its HTF7000 series of turbofan propulsion engines to Brazilian commercial jet maker Embraer (nyse: ERJ - news - people ).
"It's no question this is a good move for Honeywell," said Paul Nisbet, an aerospace analyst at JSA Research. "It should result in somewhere in the neighborhood of $1 billion a year in revenues, which is a 3% increase over current levels, so this is not something to be sneezed at." Nisbet added that in signing the deal Honeywell outfoxed Rolls Royce and Pratt & Whitney which undoubtedly were trying to get their engines in the Embraer planes.
Despite starting the day strong, shares of Honeywell were dragged down by Wall Street's tough day, trading up only 0.9%, or 52 cents, to $57.71, in early-afternoon trading, while Embraer shares actually fell 1.1%, or 49 cents, to $43.12.
Christopher Glynn, an analyst at Oppenheimer, said that the revenues should start flowing in 2011 and the contract has 20-to-25 years of life to it. He pointed out, though, that the far bigger piece of the deal comes from the after-market lift.
"The original equipment content is in the engine, but those engines will have to be services regularly," Glynn said.
Honeywell said the HTF7500-E features new technology which reduces emissions and helps improve fuel efficiency. The engines are earmarked for Embraer's new MSJ and MLJ business aircraft.
"It would be safe to assume that over the next 20 years or so there will be over 1,000 of these Embraer aircraft built because they're talking about 2,000 engines and they're twin engine aircraft," Nisbet noted.
The contract follows Honeywell's March win at Gulfstream valued at $3 billion, an Air Tran contract earlier this year valued at $1 billion and an Airbus A350 deal announced in the fourth quarter valued at $16 billion.
The Associated Press contributed to this article
(e) On April 1, 2008, Newport Corporation (the "Registrant") entered into Severance Compensation Agreements with (i) Robert J. Phillippy, President and Chief Executive Officer; (ii) Charles F. Cargile, Senior Vice President, Chief Financial Officer and Treasurer; (iii) each of the Registrant's other named executive officers; and (iv) certain other officers of the Registrant. Such agreements provide for certain payments and benefits in the event of termination of the officer's employment under certain circumstances. All of such Severance Compensation Agreements replace and supersede any and all prior severance compensation or change in control agreements between the Registrant and such officers. Pursuant to the terms of each Severance Compensation Agreement, in the event that the officer's employment is terminated within two years of a "change in control" of the Registrant (as defined in the agreement), unless such termination results from his death, disability or retirement, or his resignation for reasons other than "good reason" (as defined in the agreement), or constitutes a termination by the Registrant for "cause" (as defined in the agreement), he will be entitled to receive:
(i) a lump-sum cash payment equal to his highest biweekly base salary in effect during the 12-month period immediately preceding his termination date multiplied by 26 (multiplied by 52 in the case of Mr. Phillippy), subject to applicable tax withholding;
(ii) a lump-sum cash payment equal to his incentive compensation payable under any incentive, bonus or similar plan of the Registrant in effect for the year during which his termination date occurs, calculated based on 100% satisfaction of all applicable performance goals established under such plan (two times such incentive amount in the case of Mr. Phillippy), subject to applicable tax withholding;
(iii) continuation of benefits under the Registrant's medical, dental and vision plans, and long-term disability insurance for twenty-four months;
(iv) automatic vesting of all unvested stock options held by the officer, such automatic vesting to be calculated based on 100% satisfaction of any applicable performance goals, and, unless otherwise specified by the officer, payment of an amount equal to the difference between the exercise price and fair market price (calculated as set forth in the agreement) of the shares of common stock subject to all vested and unvested stock options held by him, subject to applicable tax withholding;
(v) automatic vesting of all unvested restricted stock, restricted stock units and stock appreciation rights held by the officer, such automatic vesting to be calculated based on 100% satisfaction of any applicable performance goals, and settlement thereof by delivery of shares of common stock to the officer, subject to applicable tax withholding; and
(vi) certain other benefits, including payment of an amount sufficient to offset any excess "parachute payment" excise tax payable by the officer pursuant to the provisions of the Internal Revenue Code, and/or any comparable provision of state or foreign law.
In addition, the Severance Compensation Agreement between the Registrant and each of Mr. Phillippy and Mr. Cargile provides that, in the event that the Registrant terminates the officer's employment other than for cause at any time during the term of the agreement in absence of a change in control of the Registrant, he will be entitled to receive: (i) a lump-sum cash payment equal to his highest biweekly base salary in effect during the 12-month period immediately preceding his termination date multiplied by 26; (ii) a lump-sum cash payment equal to his incentive compensation payable under any incentive, bonus or similar plan of the Registrant in effect for the year during which his termination date occurs, calculated based on 100% satisfaction of all performance goals, and (iii) continuation of benefits under the Registrant's medical, dental and vision plans, and long-term disability insurance for twelve months.
None of the Severance Compensation Agreements between the Registrant and any officer other than Mr. Phillippy and Mr. Cargile provides for benefits in the event of termination of such officer's employment by the Registrant in absence of a change in control.
The foregoing description of the Severance Compensation Agreements does not purport to be complete and is qualified in its entirety by reference to (i) the Severance Compensation Agreement between the Registrant and Mr. Phillippy,
(ii) the Severance Compensation Agreement between the Registrant and Mr. Cargile, and (iii) the form of Severance Compensation Agreement between the Registrant and each of the Registrant's other named executive officers and certain other officers, copies of which are attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively, and are incorporated herein by reference. Item 9.01 - Financial Statements and Exhibits.
www.sec.gov
OC Oerlikon sees full year solar sales over 700 million Swiss francs
04.03.08, 4:11 AM ET
ZURICH (Thomson Financial) - OC Oerlikon Corporation AG. said its solar segment is expected to achieve sales of more than 700 million Swiss francs in 2008 as markets increasingly turn to clean solar energy.
Last year, the segment contributed some 300 million francs to the group's sales.
OC Oerlikon also said that it will continue to expand production, development and support for its leading thin-film silicon solar energy solutions.
As previously announced the group will open a new Asian Hub in Singapore in the second half of the year to boost its local presence.
johanna.treeck@thomson.com
2007 Annual Report
http://pinksheets.com/edgar/GetFilingHtml?FilingID=5835559
Jamie Dimon's shopping list
JPMorgan Chase reportedly made an offer for Washington Mutual that WaMu rejected. So who will the big bank target next?
NEW YORK (CNNMoney.com) -- Buying Bear Stearns is apparently not enough to sate JPMorgan Chase CEO Jamie Dimon's appetite for beaten down financials.
Apparently, Dimon also approached struggling savings and loan Washington Mutual (WM, Fortune 500) about a takeover as well.
TalkBack: What should JPMorgan buy next?
But WaMu spurned Dimon, according to a story in the Wall Street Journal. Instead, WaMu accepted a $7 billion loan investment from private equity firm TPG.
So what's next for JPMorgan Chase (JPM, Fortune 500) now that WaMu has said, "Thanks, but no thanks?"
Dimon is probably going to target other banks whose stock prices have crumbled as a result of the mortgage meltdown and credit crunch.
"Is JPMorgan Chase going to go out and knock on more doors? Absolutely," said Gerard Cassidy, analyst with RBC Capital Markets. "I have to believe they will approach others as a vulture investor. Dimon's a very judicious buyer."
Frank Barkocy, director of research with Mendon Capital Advisors, an investment firm that focuses solely on financial stocks, agreed.
He thinks that Dimon's interest in WaMu is proof that JPMorgan Chase would like to bulk up in California and the Southeast. With that in mind, Barkocy said two regional banks in the Southeast that Dimon might target next are Atlanta-based SunTrust (STI, Fortune 500) and Birmingham, Ala.-based Regions Financial (RF, Fortune 500).
Shares of SunTrust have plunged more than 30% in the past twelve months while Regions' stock has plummeted more than 40%
Barkocy added that another bank closer to JPMorgan Chase's home base of New York that might be a good fit is Sovereign Bancorp (SOV, Fortune 500). A purchase of Sovereign, based in Philadelphia, would expand JPMorgan Chase's presence in Pennsylvania, New Jersey and New England. And Sovereign has lost nearly two-thirds of its market value in the past 52 weeks.
"It makes sense for JPMorgan Chase to explore more deals. I don't think they are done yet, particularly with distressed situations," Barkocy said.
Problem is, some of the other banks up for grabs right now that might be considered distressed are not great fits for JPMorgan Chase.
Cleveland-based National City (NCC, Fortune 500) hired Goldman Sachs to explore "strategic alternatives" last week and is said to have attracted interest from KeyCorp (KEY, Fortune 500), Fifth Third Bank (FITB, Fortune 500) and Wells Fargo (WFC, Fortune 500).
But JPMorgan Chase, which includes the former Midwestern banking giants Bank One and First Chicago as part of its makeup, doesn't really need to expand much further in Ohio.
As for opportunities in the Golden State, Brea, Calif.-based Fremont General (FMT) is in danger of being delisted by the New York Stock Exchange. And the Federal Deposit Insurance Corp. told Fremont last month that it must raise more capital or sell itself.
But Barkocy said Fremont would probably be too small for Dimon to be interested in.
"What's left in California would not give JPMorgan Chase the same critical mass as WaMu would. They could do some fill-in deals with smaller-sized banks but I don't think that's the game plan," Barkocy said.
Dimon may face another problem trying to expand. Cassidy said he thinks many banks would follow WaMu's lead and turn down low-ball bids. According to the Wall Street Journal report, JPMorgan Chase offered to buy WaMu for $8 a share. At the time, the stock was trading around $10.
In the case of Bear Stearns, the investment bank had little choice but to accept Dimon's original "takeunder" offer of $2 a share since Bear was facing the prospect of bankruptcy. (JPMorgan later upped its offer to $10 a share - still a significant discount to where Bear was trading before the credit crunch.)
Cassidy said other banks may choose to try and ride out the storm in the hopes that their financial conditions will eventually improve. He said that some banks may find themselves in a situation when a fire sale is the only option after they report first-quarter earnings.
But unless a bank fears that it is truly on the verge of imminent collapse, it doesn't make sense to sell for a market discount.
"No big bank is going to go out and try and do a transaction with a big premium. It's not in the cards today because of credit quality," he said. "Therefore, if you're a seller and you think you will make it through the downturn, you'd tell potential buyers to call you back in three years."
Still, Dimon has the luxury of sitting back and watching how Wall Street reacts to what is likely to be another brutal round of first-quarter reports for many of the companies on his shopping list.
"Dimon does a tremendous job of due diligence. They will still be able to strike if there are advantageous opportunities," Barkocy said.
Issue #1 - America's Money: All this week at noon ET, CNN explains how the weakening economy affects you. Full coverage.
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First Published: April 9, 2008: 11:02 AM EDT
Exubera, the inhaled insulin drug developed by Nektar Therapeutics Inc. and later dumped by Pfizer Inc., may be linked to lung cancer, the companies warn.
Pfizer, which stopped marketing the drug in October because of poor sales, said it updated Exubera's label. Meanwhile, Nektar (NASDAQ: NKTR), which had regained rights to Exubera and was in negotiations with potential inhaled insulin partners, said it has broken off partnership talks as a result of Pfizer's findings.
Six of 4,740 patients using Exubera developed lung cancer, according to a review of clinical trial and data and other reports. That's compared to one of 4,292 patients not using Exubera.
That's too few cases to determine whether the cancer is related to Exubera, the drug's updated label says, and all patients who were diagnosed with lung cancer had a prior history of cigarette smoking. Yet the data is the latest -- and possibly fatal -- blow to inhaled insulin.
Pfizer's (NYSE: PFE) dropping of Exubera was followed by similar moves by Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), which had a inhaled insulin development with Aradigm Corp. of Hayward.
"Fortunately, over the past year Nektar has significantly transformed its business, moving away from inhaled insulin," said Nektar President and CEO Howard Robin.
Nektar, which agreed to pay past Exubera partners West Pharmaceutical Services Inc. and Consort Medical up to $38.4 million for costs and expenses, will not incur any additional charged related to the lung cancer warning, the company said.
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2008/04/07/daily21.html?ana=yfcpc