Bank of America Corp (NYSE:BAC) Merrill Lynch lost $10 million last week related to stock options which resurfaced a debate regarding an options-trading strategy that caused controversy, according to the Wall Street Journal. This loss was due to the bank’s failure to a dividend trade properly, and it details the risks involved. A few option watchers and exchanges have argued that the dividend trades inflate market volume and does little to benefit the industry.
Sirius XM Radio Inc (NASDAQ:SIRI) will undoubtedly pass its 2012 subscriber guidance of 1.6 million net subscriber additions during 2012, and it will probably reach that number during Q3, ending on Sunday.
Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.
Microsoft Corporation (NASDAQ:MSFT): Windows 8 isn’t expected to be a huge success initially. Two stories circulated this weak that caused caused concern that Windows 8 and Microsoft will fail. Intel CEO Paul Otellini stated to employees in Taiwan that Windows 8 will be launched prior to its full completion, and it still requires numerous improvements, Bloomberg’s Tim Culpan and Ian King reported. Later, and Intel PR attempted to do damage control on the story, describing it as “unsubstantiated.”
Research In Motion Limited (NASDAQ:RIMM) should report Q2 earnings on Thursday, September 27, in a conference call that is scheduled for 5:00 pm ET. The company’s consensus estimate is (47c) for EPS and $2.49 billion for revenue, reports First Call. Shares rallied by 5 percent since the company reported a huge jump in new BlackBerry users that surpassed expectations, reaching 80 million. Analysts do not believe that this optimism will last, since they believe that Q2 will have disappointing results. At the last earnings call, management claimed that it predicted for the next few quarters to remain difficult for its business due to the increasing competitive environment, from companies like Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL), reduced handset volumes, and possible financial impacts from the delay of its BlackBerry 10. Additionally, the company expects to face restructuring related charges totaling $350 million by the end of FY13, which is mostly associated with its global workforce reduction. For Q2, Wells Fargo thinks that Research in Motion shipped about 6.5 million handsets during Q2 compared to its consensus of 6.9 million and its Q2 estimates for revenue, gross margin, and EPS are at $2.44B, 26.0 percent, and $0.52. The firm’s Q2 subscriber ARPU estimates $4.23, a 3.1 percent drop and 14.7 percent year-over-year. Wells Fargo thinks that RIM will give an update regarding its cost savings initiative through its CORE program, aiming to achieve $1 billion of cost savings by FY13. Not long ago, the company held its BlackBerry Jam Americas developer conference and stated that BB10 continues to be on track to launch during Q1 of FY13.
Sprint Nextel Corporation (NYSE:S): Following his statement that there was a 50 percent chance in March that Sprint would go bankrupt in attempts to build a national wireless network able to support smartphones such as the iPhone 5 and compete with stronger carriers along with citing bond trading prices, Bernstein’s Craig Moffett now states that readily available financing takes the idea even further. Sprint has had a 100 percent-plus stock increase during 2012, and Moffett still claims that even if bankruptcy is not a near-term issue for the company’s shareholders, there are still significant risks.