Schaeffer's Trading Floor Blog

Buzz Stocks: Herbalife, AIG, Eli Lilly, and Google

Today's hot stocks to watch in the news include HLF, AIG, LLY, GOOG

by 1/10/2013 9:05 AM
Stocks quoted in this article:

U.S. stock futures are poised for another positive open and are perched slightly above breakeven thanks in part to encouraging news from international markets. Turning to company-specific reports, here are some names to watch in today's session:

  • Earnings news: Tiffany & Co. (NYSE:TIF) projected that full-year earnings will come in toward the low end of previous forecasts, after holiday numbers failed to live up to expectations. November and December sales rose 4%, down from the 7% growth posted in the same period in 2011. The high-end jewelry retailer's earlier forecast was for per-share earnings of $3.20 to $3.40 for the year, versus the consensus analyst view of $3.31. (Bloomberg)

  • In the wake of activist investor Bill Ackman's contentious takedown attempt of Herbalife Ltd. (NYSE:HLF) -- in which shares plummeted some 40% after he called the company a pyramid scheme -- rival hedge-fund activist Dan Loeb bought a stake in the weight management business. Deeming Ackman's actions as "preposterous," Loeb countered his fellow investor's short-trading quest by acquiring an 8.24% stake in HLF. Meanwhile, HLF President Des Walsh took to the airwaves to call Ackman's accusations a "gross distortion of reality." (New York Post; CNBC)

  • After some contemplation and a meeting with its board, American International Group, Inc. (NYSE:AIG) said it will not pursue litigation against the U.S. government. Just days ago, AIG was toying with the idea of joining a $25 billion shareholder lawsuit that claimed the government took advantage of the company after it was bailed out in 2008. But Chairman Robert S. Miller underlined current AIG sentiment: "America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us. To date, AIG has returned $205 billion to America, including a profit of $22.7 billion. We continue to thank America for its support." (Los Angeles Times; The New York Times)

  • In hopes of building a stronger presence in the world's largest smartphone market, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook visited China to talk with China Mobile Ltd. (ADR) (NYSE:CHL) -- the world's largest mobile carrier by subscription. According to a CHL spokesman, Cook met with China Mobil Chairman Xi Guohua to open talks and discuss "matters of cooperation," but due to a confidentiality agreement, no additional details were released. (Reuters)

  • The first in the line of many possible decisions has been reached in a federal lawsuit surrounding the pregnancy drug DES. In this case, Eli Lilly & Co. (NYSE:LLY) agreed to an undisclosed settlement with four sisters who allege they developed breast cancer because their mother took DES while pregnant in the 1950s. Thousands of cases have been filed linking the synthetic estrogen drug to vaginal cancer, cervical cancer, and fertility problems. Commenting on the case, LLY insists that DES did not cause the cancer but recognized that the settlement was in the company's "best interest." (USA Today)

  • Continuing its support of renewable energy efforts, Google Inc (NASDAQ:GOOG) is investing $200 million in the Spinning Spur wind farm in west Texas. The 70 turbines were activated late last year and can produce enough energy to power 60,000 homes for a year. This is one of many alternative energy projects Google has supported over the past two years, to the tune of more than $1 billion. (CNNMoney)

  • Finally, a rare baseball card from 1865 is headed to the auction block, where it is expected to draw bids of at least $100,000. The artifact from the Brooklyn Atlantics amateur baseball club was discovered at a yard sale along the Canadian border. There are only two other cards of this type in existence, one of which is housed in the Library of Congress. (USA Today)


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