Sirius XM, BofA, AIG, Cisco Generate High Share Volume May 8th
Sirius XM Radio Inc (NASDAQ:SIRI): Liberty Media (LMCA) reported earlier that the company entered into a forward purchase contract for 302M shares of SiriusXM (NASDAQ:SIRI), with a forward price of $2.15 per share for a total notional amount of $650M. If physically settled, the purchase will increase Liberty’s ownership of SiriusXM to 45.2% on an as-converted basis.
Bank of America Corp (NYSE:BAC): Bank of America Home Loans has begun reaching out to customers who may be eligible for forgiveness of a portion of the principal balance on their mortgage under terms of a recent settlement among five major banks, 49 state attorneys general and the federal government. The first letters in a targeted outreach to more than 200,000 potential candidates for this assistance are arriving in homes this week; most of the letters will be mailed by the third quarter of this year. The bank estimates average monthly savings of 30% on mortgage payments of customers who qualify for this program. So far under this early initiative, about 5,000 trial modification offers have been mailed, providing a potential total of more than $700M in forgiven principal. Homeowners are required to make at least three timely payments before the modification can become permanent.
American International Group, Inc. (NYSE:AIG): U.S. taxpayers could realize a profit of over $15.1B from the government’s bailout of American International Group (NYSE:AIG), according to a report by the Government Accountability Office, which says the total return depends on the overall health of AIG and a number of other factors relating to Treasury’s ownership stake, reports Reuters.
Cisco Systems, Inc. (NASDAQ:CSCO): The company is set to report earnings tomorrow. The average analyst estimate is for profit of 41 cents per share, a rise of 10.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 41 cents during the last month. Analysts are projecting profit to rise by 17.1% compared to last year’s $1.64.
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