Fed Unloads More GM Stock, Pinnacle Foods’s Mixed Quarter, and 3 More Hot Stocks
General Motors Co. (NYSE:GM): The Treasury Department sold $877 million worth of GM stock last month as it continues to make significant headway in its goal to be fully divested within another four to five months. Moreover, the government has made up about $35 billion of the $51 billion that it sank into the automaker so far.
Pinnacle Foods (NYSE:PF): Second quarter earnings per share of 29 cents beat estimates by 2 cents, while revenue of $569 million missed by $7.64 million. The company says it maintained its market share during the second quarter, although overall category weakness resulted in sluggish revenue growth. North American retail sales dropped 1.6 percent over past year, as the company raised its EPS guidance to $1.53-$1.57 from $1.49-$1.55 prior to reflect the purchase of Wish-Bone.
HSBC Holdings PLC (NYSE:HBC): Weakness in HSBC’s stock caused by impairment losses on its Latin American operations, notably Brazil and Mexico, should be treated as a buying opportunity, according to Bernstein’s Chirantan Barua, who raised the price target to $66. He points out that Latin America has been distressed since 2010, and HSBC has actively restructured its book there; further, Brazil’s NPL ratio has turned for the better in the first half of the year.
21st Century Fox (NASDAQ:FOXA): With just three days before Fox Sports 1 is scheduled to launch, 21st Century Fox still has not obtained carriage deals with DirecTV, Dish Network, and Time Warner Cable. Fox doesn’t have the same kind of leverage that larger broadcasters have — like CBS with the NFL — as its two main assets are Speed programs and a Regis Philbin talk show.
J.C. Penney (NYSE:JCP): J.C. Penney’s near-term future doesn’t offer a whole lot of visibility, but bond holders who purchased the J.C. Penney Century bond in 1997 are more concerned with the retailer’s health 84 years down the road. The 2097 JCP bonds now yield 11.4 percent; the price has fallen by 21 percent since May.
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