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Tuesday, November 13, 2007

Jim Cramer's Mad Money Stock Recap Nov. 12th

On Monday's show, Cramer started with his reasons that the market has not hit a bottom yet. He does not think that the Fed will continue to cut rates, and that mortgages and weak consumers will hurt stocks. Cramer thinks this is a time to preserve capital, not go on the offensive in this market.
Cramer then went to the phone lines. The first caller asked whether options expiration will cause the market to fall further, and Cramer said that he thinks tomorrow is the time to pick up some of the good stocks that have been hit the hardest over the past few days. Second caller asked Cramer how a weak dollar helps the economy, and what companies are in the best position to take advantage of it? Cramer said that he thinks the dollar is about to bottom, so he doesn't want anyone to try and profit off of a weak dollar now. The next caller asked if now is the time to buy a stock like Sandridge (SD), and Cramer said that he wants you to buy high quality oil stocks that pay high dividends before looking at a stock like that one.
Cramer then gave his pick for a stock that could give a cautious portfolio a boost when the market turns around and that stock was Apache (APA). Cramer has been pushing this stock since July, and he is still behind it because it can maintain its earning multiple. The CEO of the company was on the show to talk about the company's plans for the future, and his opinion on the price of oil.
Cramer came back fromt he lightning round and reviewed a duel between two analysts over Wyeth (WYE). One analyst upgraded the stock, and another analyst downgraded it at the same time. Cramer agrees with the analyst who upgraded the stock since he is bullish at this time. Cramer likes WYE because it is a defensive stock, people will want to own it if a recession hits, and they are buying back stock.
Mad Mail: The first email asked about E*Trade (ETFC), and Cramer said he wants people to stay away from it. The next email asked about Foster Wheeler (FWLT), and Cramer said that although it is a great company, the stock is losing momentum in this market. The next email asked about Cramer's Dow prediction, and he said that his prediction was based on the Fed cutting rates further, which they seem unwilling to do. The next email asked about NRG's (NRG) storage of spent fuel rods, and Cramer said that he should have asked the CEO that question when he was on the show. The last emailer asked about ways to profit from the reduction of the crack spread as oil prices decline, and Cramer said he thinks the best play on that idea is Marathon (MRO).
Sudden Death. In sudden death Cramer was bullish on Sirius (SIRI), Nordstrom (JWN), and Aecom (ACM). Cramer was bearish on Acadia Pharmaceuticals (ACAD).

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Friday, October 19, 2007

CNBC's Fast Money Recap Oct. 18th

Technology
Google (GOOG) reported quarterly profits that soar 46% and the search giant added 2,130 employees in the third quarter. Nokia (NOK) traded higher after earnings nearly doubled and global market share rose to 39%.
The big pharmaceutical companies will have earnings rolling in with Pfizer (PFE), Eli Lilly (LLY) and Wyeth (WYE) set to report Thursday and Merck (MRK) and Schering-Plough (SGP) set to report Monday. Pfizer issued news that it will no longer sell Exubera which is an inhalable insulin device. This news took down Alkermes (ALKS), MannKind (MNKD) and Nektar (NKTR). Finerman continues to believe that Merck will buy Biogen (BIIB).
Word on the Street
Advanced Micro Devices (AMD) reported a quarterly loss but, revenues soared. Adami suggests trading off of AMD with Dell (DELL). However, Macke would buy Microsoft (MSFT) based on this news. Baxter (BAX) traded higher after earnings beat Wall Street estimates. Najarian recommends looking at Intuitive Surgical (ISRG). Bank of America (BAC) traded lower after reporting a 32% drop in earnings. Capital One Financial (COF) reported a third quarter loss as profits fell 32%. Najarian would sell Capital One Financial and buy State Street (STT) and JPMorgan (JPM). Wal-Mart (WMT) announces plans to drop prices ahead of the holiday season. Finerman maintains that Wal-Mart is attractive on valuation and she owns the stock.
Rail Trade: Finerman and Adami picked CSX (CSX) in the rail space. Najarian's favorite was Burlington Northern (BNI) and Macke prefers Union Pacific (UNP).
Oil: As oil continues to hit record highs, Najarian proposes playing off oil with solar stocks and recommends buying Cypress Semiconductor (CY), SunPower (SPWR), JA Solar (JASO) and Suntech (STP). Macke favors NRG Energy (NRG). Adami says buy Shaw Group (SGR) for a play on nuclear power.
Pops & Drops
Pops - Callaway Golf (ELY) traded up 12% on higher profits.
Drops - Allstate (ALL) dropped 4% after revenues fell 16%.
iShares FTSE/Xinhua China 25 Index Fund (FXI) fell 3%.
American Standard (ASD) fell 5% after cutting its 2007 forecast.
Final Trades
Macke recommends Intel (INTC).
Adami would short Exxon Mobil (XOM) for the second day in a row.
Finerman is a buyer of Limited Brands (LTD) on a pullback after the retailer was replaced in the S&P 100 index.
Najarian loves and owns Cypress Semiconductor (CY).

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Saturday, August 11, 2007

Stock Market Wrapup Aug. 10th

Volatility has been the name of the game the past two weeks, and today, the final trading day of the week, was no different. Global stock markets fell hard overnight on still more credit market fears. At the onset of trading, all three major market averages here in the states fell significantly. However, bulls fought back in late trading to end the session slightly to the downside. The S&P managed to eek out a gain of half a point.
Continuing on the credit market fallout, central banks around the globe moved in unison to pump in liquidity to their respective banking systems. In total, over $135.7 billion was infused into systems in the past 24 hours from central banks in the U.S., Europe, Japan, and Australia. On the domestic front, the Federal Reserve orchestrated three separate infusions in the system, which by the end of the day stood at $38 billion.
Overnight, Germany's largest bank Deutsche Bank AG (NYSE: DB - News) said an investment fund that has exposure to the subprime credit area has lost -30% of its value since July. The DWS fund said assets fell from 3 billion euros to 2.3 billion euros. Elsewhere, Renaissance Institutional Equities Fund, a $29 billion quantitative hedge fund run by James Simmons, told investors that its fund has fallen -8.7% so far this month.
The nation's largest mortgage lender, Countrywide Financial (NYSE: CFC - News), said last night in a regulatory filing that "unprecedented disruptions in debt markets could continue to worsen" and that it could potentially make it harder for the company to sell loans and obtain credit. Management said in a statement that "Since the company is highly dependent on the availability of credit to finance its operations, disruptions in the debt markets or a reduction in [its] credit ratings could have an adverse impact on [its] earnings and financial condition, particularly in the short term." Shares plunged in early-morning trading, but recouped the majority of its losses. The stock finished lower by -2.8%.
On the economic data front, the Labor Department said import prices came in hotter than expected in July. Prices of goods imported to the U.S. climbed 1.5% in the prior month, led by petroleum.
On the earnings side of the market, EchoStar Communications (Nasdaq: DISH - News) said second-quarter earnings rose 33% to $224.2 million, or 50 cents per share, up from $168.8 million, or 38 cents per share, last year. Revenues rose 12% to $2.76 billion. During the quarter, the satellite operator added 170,000 net new subscribers, down from 195,000 in the second quarter last year. The company did say that the SEC invalidated all hardware claims made by Tivo (Nasdaq: TIVO - News). Its shares rose 1.2% on the session. Elsewhere, Wyeth (NYSE: WYE - News) shares fell the most in a year after the drug company said U.S. regulators rejected its new schizophrenia drug because it wasn't shown to be effective. The FDA is now requesting more information.
By the BullMarket.com Staff

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Tuesday, April 10, 2007

Stock Market Wrapup Apr. 10

Stocks traded aimlessly again today as investors waited for the start of earnings season, which traditionally kicks off with an announcement from aluminum producer Alcoa (NYSE: AA - News). The major market averages all managed to post modest gains. Oil prices were also higher, as was the 10-year Treasury note, which saw its yield drop to 4.72%.
Housing was once again in the spotlight as homebuilder D.R Horton (NYSE: DHI - News) announced that is Q2 sales orders fell 37% overall, paced by even steeper declines in the formerly booming California and the Southwest markets. The company's net orders totaled 9,983 homes, down from 15,771 homes last year. Horton's Q2 ended March 31st. The stock closed -1.5% lower.
In corporate news, Swedish telecom equipment maker LM Ericsson (Nasdaq: ERIC - News) signed a deal to manage a portion of the European network of Vodafone (NYSE: VOD - News). Ericsson's shares added 3.6% on the news. Citigroup (NYSE: C - News) was up 1.6% as investors waited for the results of its long-anticipated cost review. Generic drugmaker Mylan Laboratories (NYSE: MYL - News) rose 2.8% after it raised its 2007 profit forecast to a range of $1.60 to $1.63 a share, up from its previous guidance of $1.50 to $1.55 per share. Mylan cited strength in its generics business, including new product launches, for its upbeat forecast.
The flip side of the drug business was exemplified by biopharmaceutical company Adolor (Nasdaq: ADLR - News), which saw its shares plunge -58.7% after it announced that it stopped a study of a new drug to treat opioid-induced (OIC) constipation over safety concerns. The drug, Entereg, was being developed in association with British drugmaker GlaxoSmithKline (NYSE: GSK - News). Several analysts swiftly issued downgrades for Adolor, while Brean Murray Carret reiterated its "sell" recommendation. Progenics Pharmaceuticals (Nasdaq: PGNX - News), which submitted its own OIC compound for FDA approval last Friday along with partner Wyeth (NYSE: WYE - News), added 1.5% today.
Shares of ImClone Systems (Nasdaq: IMCL - News) also slid -6.4% on poor trial results. The company said a late-stage trial of its cancer drug Erbitux failed to extend survival in patients with pancreatic cancer. Erbitux is already approved for treatment of colorectal cancer, and head and neck cancer.
In M&A news, Biosite (Nasdaq: BSTE - News) said it will enter merger talks with Inverness Medical Innovations (NYSE: IMA - News), which last week offered $90 a share for the maker of medical diagnostic tests. IMA's bid topped an earlier offer from Beckman Coulter (NYSE: BEC - News) of $85. All three companies are in the business of making medical test products.

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Sunday, April 01, 2007

Wyeth (WYE) Sees Huge Potential

Wyeth (NYSE:WYE - news) shares may rise 20 percent or more because its business is improving, its experimental drugs to treat patients with Alzheimer's disease are promising, and it could be an attractive takeover target, Barron's newspaper said in its April 2 edition.
The company's shares could rise into the 60s from Friday's close of $50.03, where the ratio of price to expected 2007 profit is 15 percent below typical peers among big drug companies, the newspaper said.
Wyeth shares trade at 14.5 times the average analyst forecast for $3.45 profit per share in 2007, according to Reuters Estimates. Fourth-quarter profit totaled $855 million, or 63 cents per share, and excluding items totaled 66 cents per share.
Barron's said Madison, New Jersey-based Wyeth should increase profit at 15 percent annually, regardless of whether any of its dozen Alzheimer's drugs under development pay off.
But it said if only a few of the drugs succeed, the company could generate hefty revenue should many of the 5 million Alzheimer's patients in the United States spend a few thousand dollars a year on treatments for the disease.
The newspaper said Enbrel, a product designed to treat arthritis, and Prevnar, a strep vaccine, should help lift cash flow and profit.
Another big product is the antidepressant Effexor, which generated about 18 percent of the fourth quarter's $5.22 billion of revenue.
The newspaper said Wyeth may also be near the end of incurring costs for its discontinued fen-phen diet drug, following a nationwide settlement and $21 billion of charges.
In addition, the newspaper said Wyeth is one of only a handful of drug companies that might be attractive merger partners for big rivals such as Pfizer Inc. (NYSE:PFE - news) and Switzerland's Novartis AG (NOVN.VX).
Wyeth's stock peaked at $70.25 in April 1999. Its shares' 52-week high is $54.10, set on October 19, 2006.
Published by SeekingAlpha

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Tuesday, January 30, 2007

Bullmarket.com Wrapup

Stocks climbed higher today, as investors shrugged off a sharp rise in crude oil prices and whatever anxiety they may have about the Federal Reserve's decision on interest rates, which is due tomorrow. Investors have for the most part resigned themselves to the fact the Fed is unlikely to cut interest rates in the near term; for now they will settle for a continuation of the central bank's steady-as-she goes policy of not raising them further. The 10-year Treasury note also found buyers in advance of the Fed's announcement.
Ordinary Americans, for their part, were upbeat about the state of the economy in January, a period when wages were moving up and oil prices were going down, according to the private Conference Board's monthly consumer confidence survey. Oil futures, however, rose more than $2 a barrel today on a report in The Wall Street Journal that Saudi Arabia would cut its production another 168,000 barrels a day starting February 1st, or almost 1 million barrels a day from last summer. Natural gas prices were also up sharply as artic cold settled in across the Midwest.
In earnings news, U.S. Airways Group (NYSE: LCC - News) swung to a profit in Q4, earning $12 million, or 13 cents per share, against a loss of -$261 million, or -$3.27 a share, during the corresponding 2005 quarter. The results included several special items, which if excluded, meant the company would have earned $86 million, or 91 cents a share. The stock dropped -2% despite the positive results. Fuel prices are the company's largest cost component, and today's increase in oil prices contributed to the selling pressure. Rival JetBlue Airways (Nasdaq: JBLU - News) also declined, falling -4% after it reported a return to profitability in Q4, earning $17 million, or 10 cents a share, against a year-earlier loss of -$42 million, or -25 cents a share.
Proctor & Gamble (NYSE: PG - News) reported a 12% increase in profits amid strong sales of razors and other high-margin products, and it increased its full-year guidance. Meanwhile, transportation bellwether United Parcel Service (NYSE: UPS - News) reported results that were in line with expectations, but it issued soft guidance for the current quarter and full year.
In the pharmaceutical sector, Merck (NYSE: MRK - News) said acquisition costs and the loss of patent protection for its anti-cholesterol drug Zocor cut its Q4 profit by -58%. Revenue, however, was up 5% on sharply increased sales of vaccines. Merck's profit dropped to $474 million, or 22 cents a share, from $1.1 billion, or 51 cents per share, a year earlier. Included in the results was a charge of -$466 million related to Merck's purchase of biotechnology company Sirna Therapeutics. Wyeth (NYSE: WYE - News), meanwhile, said its profits rose 17% on strong sales of its vaccine Prevnar and arthritis drug Enbrel, but its results were below analyst forecasts. Wyeth co-markets Enbrel Amgen (Nasdaq: AMGN - News).
Electronics retailer Radio Shack (NYSE: RSH - News) rose 5% after being upgraded from "sell" to a "buy" by Goldman Sachs, which called the company a "classic turnaround opportunity." Wireless phone maker Motorola (NYSE: MOT - News) also rose sharply, jumping 7% on news that activist investor Carl Icahn has taken a 1.4% stake in the company and was seeking a seat on its board. Motorola, the world's #2 cell phone maker, recently reported a -48% drop in its Q4 profits as prices for its popular Razr phones have plummeted. The stock has been trading near its 52-week low.

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Stock Market Wrapup Jan. 30

Gains in oil stocks helped push stocks higher Tuesday ahead of Fed statement Wednesday afternoon. The Dow ($INDU) ended the session with a gain of 32.53 points to 12,523.31. The S&P 500 ($SPX) added 8.20 points to 1,428.82. The NASDAQ ($COMPQ) tacked on 7.55 points to close at 2,448.64. Volume was lower on the session with the NYSE trading 1.53 billion shares and the Naz turning over 1.81 billion shares. Market breadth was positive by a 23-to-10 and 18-to-12 ratio on the Big Board and Naz respectively.Crude prices rose sharply Tuesday and though this is a negative in the long term for many companies, it did boost oil related stocks on the session. Oil gained more than five percent today, closing the session near $57 a barrel. As a result, the AMEX Oil Index ($XOI) gained nearly two percent. News that Saudi Arabia planned on cutting production further Thursday helped boost the commodity. A mild rise in consumer confidence as measured by the Conference Board in January helped boost economically sensitive stocks like Caterpillar (CAT) and Home Depot (HD). Within the report, the employment component saw strength, which helps support the view that the employment report on Friday will be strong. However, there were several earnings releases that put pressure on stocks Tuesday.Shares of 3M (MMM) fell 5.4 percent on the session after the company provided a disappointing outlook for 2007. The company blamed a decline in the housing and auto sectors as a reason for disappointing earnings growth in the fourth-quarter. When a company misses estimates and provides a pessimistic outlook, it tends to lead to a lower stock price. Shares of Merck (MRK) fell 1.3 percent Tuesday after the drug-maker only matched expectations as the company put away millions of dollars for lawsuit costs. Fellow drug-maker Wyeth (WYE) fell 2.5 percent on a disappointing earnings report as well. At the same time, Wyeth’s outlook for 2007 profits was a bit below estimates. Overall, the news didn’t put much of a hurt on the drug sector with the AMEX Pharmaceutical Index ($DRG) rising 0.11 percent. The FOMC meeting got started today and traders are being a little cautious ahead of the statement due out Wednesday afternoon. Though a change in rates is highly unlikely, there are concerns about what the Fed will say about inflation. With the economy showing strength of late, the Fed might become even more focused on combating inflation and this could lead to a Fed rate hike down the road.
Jody Osborne

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Stock Market Update

Earnings and the economy are the focus for traders and so far Tuesday, this has been enough to push stocks higher. Nonetheless, traders are cautious ahead of the FOMC statement due out tomorrow afternoon. A gain in consumer confidence has helped push Caterpillar (CAT) and Home Depot (HD) higher and Motorola (MOT) shares are up sharply on news of buying by Carl Icahn. CNet Networks (CNET) is seeing its shares soar on earnings news, although drug-makers Merck (MRK) and Wyeth (WYE) are down on disappointing results. 3M (MMM) has also put pressure on the Dow ($INDU), falling hard on its earnings report. MMM shares are off nearly four percent Tuesday, accounting for more than 20 points on the Dow. This diversified maker of products announced earnings that were four-cents short of estimates. The company also stated that 2007 earnings would be in a range from $4.60 to $4.75 a share. However, this is well below analysts’ expectations for earnings closer to $4.99 a share. Drug makers MRK and WYE are seeing there shares fall one and two percent respectively. MRK’s earnings were a penny short of expectations on a 58 percent drop in profits. However, MRK shares had gained 38 percent from their lows last May. At least the company reaffirmed guidance for 2007, which kept selling to a minimum. WYE also missed earnings estimates handily though earnings and revenues rose more than 10 percent from the year ago period. Shares of handset maker MOT are higher by more than six-percent in midday action. The company is benefiting from news that Carl Icahn has raised his stake in the company to 1.4 percent and that he has sent in notice to the company for nomination to its Board of Directors at the 2007 Annual Meeting. This has helped take the stock off its yearly lows near $18. Shares of technology media company CNET are up nearly 10 percent Tuesday. This is occurring despite the fact that company announced a sharp decline in profits in the fourth-quarter. However, revenues were up 14 percent and investors were pleased to hear that 2007 sales would be much stronger than analysts had predicted. In economic news, the Conference Board released its January confidence index and it came in just above expectations. The index rose to 110.3 from 110.0 in December, but improvements came in the employment component and the inflation gauge. Though this isn’t a report that gets a lot of attention from traders, economically sensitive stocks like CAT and HD have seen gains on the news.
Jody Osborne

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Monday, January 29, 2007

Biggest Advancers Monday

OccuLogix Inc. (NasdaqGM:OCCX - News) shares gained after the Toronto-based developer of ophthalmic devices said it has obtained investigational device exemption clearance from the Food and Drug Administration to begin its Phase III study of the Rheo procedure to treat the dry form of age-related macular degeneration. If successful, the company expects the study to support its application to the FDA for approval to market the Rheo system in the U.S.
Par Pharmaceutical (NYSE:PRX - News) shares advanced after the Woodcliff Lake, N.J.-based company said it has received final approval from the Food and Drug Administration of its abbreviated new drug application for propranolol hydrochloride extended release capsules. Propranolol HCI, the generic equivalent of Wyeth's (NYSE:WYE - News) Inderal-LA, is used to treat hypertension, angina pectoris due to coronary atherosclerosis, migraine and hypertrophic subaortic stenosis. Annual U.S. sales of Inderal-LA are roughly $215 million, Par said.
Premier Community Bankshares' (NasdaqCM:PREM - News) shares soared after the Winchester, Va.-based bank said it has agreed to be acquired by United Bankshares Inc. (NasdaqGS:UBSI - News). Premier shareholders will be able to elect to receive either United Bakshares stock, cash, or a combination. The stock consideration will be at a fixed exchange ratio of 0.93 shares of United common stock for each share of Premier common stock, and the cash consideration will be $34 a share. Premier had $900.7 million in assets at Dec.31, 2006, and 26 offices through three banking subsidiaries.
Quest Diagnostics (NYSE:DGX - News) was upgraded to overweight from neutral at J.P. Morgan. The firm said it expects the company to become more active in the acquisitions market. "Based on our conversations with Quest's management, we now believe the company will become more aggressive to act upon its long-stated goal of expanding overseas," the broker said. "In addition, we believe current guidance for the impact of the recent contract losses is too conservative, and that results over the next few quarters will prove to be better than current expectations," it added.
Silicom Ltd. (NasdaqCM:SILC - News) shares surged after the Israel-based supplier of networking products reported fourth-quarter net earnings of $1.07 million, or 20 cents a share, up from $473,000, or 11 cents a share, in the year-ago period. Revenue rose to $5.02 million from $3.13 million.
Sturm, Ruger & Co. (NYSE:RGR - News) shares gained after the Southport, Conn.-based maker of firearms and steel investment castings said it has authorized a repurchase program of up to $20 million of its common stock.
Synagro Technologies (NasdaqGM:SYGR - News) agreed to be acquired by The Carlyle Group for $462 million. The total enterprise value of the deal is $772 million, reflecting the assumption of $310 million in debt. The deal values Synagro shares at $5.76 each, a nearly 29% premium to Friday's closing price of $4.48. Synagro, a Houston-based provider of biosolid recycling services, and Carlyle expect the transaction to close in the second quarter. Synagro added that it plans to continue paying dividends on its common stock through the closing of the deal.
Tesoro Corp. (NYSE:TSO - News) said fourth-quarter earnings rose to $158 million, or $2.28 a share, from $69 million, or 97 cents a share, a year earlier. Analysts surveyed by Thomson Financial had been expecting earnings of $1.91 a share, on average. Revenue for the quarter ending December fell to $4.02 billion from last year's $4.36 billion. The company also agreed to acquire certain California assets of Shell Oil Products, including a Los Angeles refinery and 250 branded retail sites, for $1.63 billion.
Trex Co. (NYSE:TWP - News) said it will restate its results for 2003 through 2005 and the first nine months of 2006 to correct errors related to the recording of certain expenses. The maker of composite decking and railing expects the cumulative effect of the restatements to increase reported net income for 2003 through 2005 by roughly $200,000, and to increase reported net income for the first nine months of 2006 by roughly $200,000, or 2 cents a share.
Tyson Foods' (NYSE:TSN - News) first-quarter earnings rose 46%, boosted by higher profits in its chicken, pork and prepared foods units, and cost-cutting efforts that lowered expenses. The Springdale, Ark., meat processor reported first-quarter earnings of $57 million, or 16 cents a share, up from $39 million, or 11 cents a share, a year earlier. Tyson said sales for the quarter ended Dec. 30 rose 1.6% to $6.56 billion from $6.45 billion a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 6 cents a share on revenue of $6.38 billion. In addition, Tyson affirmed its earlier earnings outlook for its 2007 fiscal year, saying it expects earnings of 50 cents to 80 cents a share. The company also said it expects its second quarter to be profitable.
U.S. Airways Group (NYSE:LCC - News) is prepared to add a $1 billion cash sweetener to its offer to acquire Delta Air Lines (Other OTC:DALRQ.PK - News), according to a Wall Street Journal report. The newspaper, citing people familiar with the matter, said Tempe, Ariz.-based U.S. Airways could lift its hostile takeover offer to $10.8 billion in cash and stock if Delta's official creditors committee demands that the bankrupt carrier allow due diligence by its suitor. The creditors would also have to request that the bankruptcy court overseeing Delta's Chapter 11 bankruptcy proceedings postpone a February hearing on the Atlanta-based airline's restructuring proposal, and they'd have to agree to support the start of a formal antitrust review of the proposed merger as well.
Van der Moolen (NYSE:VDM - News) appointed Michiel Wolfswinkel as chief financial officer, effective March 1. Wolfswinkel will succeed interim-CFO Jan Van de Walter. Van der Moolen recently announced it was cutting 30% of the staff at its NYSE specialist unit as the exchange completed the transition to its hybrid trading system.

Published By MarketWatch

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