10Q Detective

SEC Filings Topping Santa's Naughty List in 2011, Part II

2011-12-23T13:03:00.004-05:00

Yahoo’s (YHOO-$15.50) online search ranking in the U.S. continued its slide this year – falling to an all-time low in September: Digital intelligence researcher comScore reported that Yahoo’s share of the overall market fell to 15.5% (compared to Google’s leading 65.3% share), down from 18.9% in June 2010.

Even after the messy firing of embattled CEO Carol Baratz in September and other management shuffles, criticism of the board’s recognized inability to engineer a strategic turnaround continued. Third Point, a hedge fund run by Daniel Loeb, disclosed a 5.1% stake in the online media company last fall and called for the resignation of co-founder Jerry Yang and other board members: “From the failed Microsoft (NASDQ:MSFT) sale negotiations [rebuffed $44.6 billion, or $31 a share, buyout offer in 2008], to a subsequent bungled and disappointing search deal with Microsoft, through a series of misguided CEO selections… this Board’s failures have destroyed value for all Yahoo stakeholders,” excoriated Loeb in a letter addressed to the board on September 8. “Instead, a reconstituted Board with new Directors who will bring fresh eyes, relevant industry expertise and increased investor alignment to the table is immediately necessary.”

Loeb opined further that Yahoo was an iconic asset, which led by a reconstituted board and management team could result in a rapidly appreciating stock to a targeted value of up to $23 a share. Notwithstanding all the noise generated by Loeb, given the fractured board’s inability to ever reach consensus on a unified business strategy – such as, spinning off its 43 percent stake in Chinese internet provider Alibaba or rebooting its advertising and online shopping businesses – Yahoo’s long-suffering stockholders won’t find much deal-making value in their stockings come Christmas.

Read more: the "SEC’s Naughty list" at 24/7 Wall Street

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

SEC Filings Topping Santa's Naughty List in 2011, Part I

2011-12-21T09:13:00.004-05:00

In straightforward fashion, News Corp. (NWS-$17.83) reported that the company faced criminal investigations regarding the well-publicized phone hacking scandal and “inappropriate payments” (bribes) to British police made by higher-ups at the media company’s erstwhile publication, News of the World. “It is also possible that these proceedings could damage our reputation and impair our ability to conduct our business,” declared the 10K filing. You think? In July, the media conglomerate withdrew its $12.4 billion takeover bid for British pay-tv satellite broadcaster British Sky Broadcasting (BSkyB), following pressure from the government.

Despite mounting legal problems, it was another profitable year for anyone named Murdoch at the family-controlled holding: Chairman and CEO Rupert Murdoch took home total compensation of $33.3 million, up from $22.7 million in 2010; his son James, deputy chief operating officer, pocketed $17.9 million, a 70 percent increase over the prior year. It looks like the financial messes resulting from the newspaper scandal didn’t damage the Murdochs’ ability to conduct business.

Read the rest of the “Worst of the Bad - Part I" regulatory filings of 2011 at 24/7 Wall Street…

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Hiding Losses at Chicos?

2011-12-14T12:31:00.013-05:00

Notwithstanding its namesake brand, average dollar sales and transaction counts are supposed to be up across all other brands at Chicos FAS (CHS-$10.50), according to management. Why, then, will the company not break out segment profit and loss (P&L) statements?

Looking to extend customer’s experience to intimate apparel, a $13.5 billion market (led by Victoria’s Secret’s commanding 25% share), Chico’s has grown the Soma label from 10 stores in 2005 to more than 200. Given the company’s ambitions are no longer “a secret,” why should the brand’s contribution to P&L still be considered such — unless discount pricing is driving sales growth — and eating into profits?

Read more at 24/7 Wall Street: Fashion and Financial Failures at Chicos

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Significant Upside to Dendreon Stock in a Buyout

2011-11-22T05:36:00.002-05:00

Acquiring Dendreon (DNDN-$7.50) offers a better-capitalized pharmaceutical company an opportunity to buy control of a potential blockbuster drug (on the cheap); mitigate revenue shortfalls going forward from patent expirations in their own portfolios; gain access to a lucrative new technology platform (targeted immune-cellular therapy could have applications beyond current labeling); and, cost-efficiently broaden existing oncology portfolio pipeline.

What is the manufacturer of the prostate cancer vaccine Provenge worth in a buyout?

Read more at 24/7 Wall Street: Dendreon Buyout, How Imminent?

Notwithstanding Bristol-Myers Squibb, David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Is "The Sky Falling" at Dendreon?

2011-11-17T00:33:00.002-05:00

Dendreon’s (DNDN-$7.50) balance sheet shows the strain of what happens when it takes 15 years to bring a novel, first-in-class cancer treatment like Provenge to market: An accumulated deficit of $1.6 billion and paltry working capital of just $74.7 million. Problematic – given forecasts of continued flat sales through mid-2012.

"Come," said Chicken Little,
"We've sad news to bring,
The sky will fall,
Killing all,
And we must tell the King!”

Digging deeper into regulatory filings, however, the 10Q Detective believes Chicken Little running around the company and pointing skyward is premature – the sky “is not falling” at the Seattle-based biotechnology company – at least not yet.

Read more at 24/7 Wall Street: Dendreon - Not Running Out Of Cash

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

MF Global Stakeholders Trusted Corzine, Lose Everything

2011-11-04T01:42:00.006-04:00

Highly leveraged, with limited liquidity, MF Global was unable to meet margin calls or the demands from regulators to boost capital reserves. An eleventh-hour attempt last weekend to raise more funds or find deeper pockets (a buyer for the entire company) failed, leaving protection under bankruptcy the only viable option.

Despite decimating the company, had CEO Jon Corzine succeeded in selling the derivatives broker-dealer to a third-party, he would have been entitled to a $12.1 million severance package, according to the terms of his employment contract. Ironically, thanks to the last Republican in the White House, George W. Bush, Corzine is unlikely to receive any going-away gifts.

Can the former Governor and Senator from New Jersey count on Democratic allies in the White House to bail him out of this debacle?

Read more at 24/7 Wall Street: MF Global and Corzine’s Folly

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Ben & Jerry's: Out to Serve and Protect?

2011-10-31T02:57:00.003-04:00

Unilever (UL-$34.16) has remained reticent as senior management of wholly-owned Ben & Jerry’s announced “deep admiration” for those protesters involved with the “Occupy Wall Street” movement. Against a spreading backdrop of violence and teargas – from New York to Oakland – one wonders how much longer before the global consumer goods conglomerate tells its Vermont-based ice-cream subsidiary to mind to its own business.

Read More at 24/7 Wall Street: Ben & Jerry’s Occupy Wall Street

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Overstating Peak Production in Utica Shale?

2011-10-23T19:58:00.005-04:00

Chesapeake Energy (CHK-$27.81) is accelerating drilling on liquids-rich plays in an effort to drive margin expansion and profitability, given near-month contract prices for natural gas languish below $4 per thousand cubic feet — lower than aggregate exploration and recovery costs (including G&A) in most regions. The natural gas provider has focused recent spud activity in the Utica Shale, mostly on leased acreage in eastern Ohio.

Read More at 24/7 Wall Street: Can Utica Shale Discovery Transform Chesapeake Energy?

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Billions in Federal Aid for No Job Creation at First Solar and SunPower

2011-10-10T23:17:00.003-04:00

SunPower (SPWRA-$8.45) and First Solar (FSLR-$59.78) boast that recently approved utility-scale projects will nourish growth of manufacturing jobs in the United States, especially in the southwest. Both solar panel manufacturers are recipients of billions in federal loan guarantees.

As for expected job creation – think again.

Read More at 24/7 Wall Street: Job Destruction at First Solar and SunPower

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Ralcorp Board's Merger Rejection Doesn't Hold Milk

2011-09-30T10:25:00.005-04:00

St. Louis-based Ralcorp (RAH-$77.00) has repeatedly spurned buyout offers from ConAgra, opining it could best unlock shareholder value by spinning off its Post Foods division - brands like Honey Bunches of Oats, Grape Nuts and Fruity Pebbles - from its private label (store brand) and ready-to-eat foodstuffs.

Considering the $94 a share purchase price was higher than Ralcorp has ever traded at, it is hard to fathom why senior management failed to endorse ConAgra’s offer, especially given the personal payday that awaited each of them under “change-in-control” clauses contained in their respective employee agreements. In a buyout, co-chief executives Kevin Hunt and David Skarie each stood to pocket, at a minimum, $15 million (including $3.7 million in accrued salaries and cash bonuses, and in excess of $6 million in stock awards). Chief financial officer Thomas Granneman left more than $5 million on the table, too (including $3 million in three-years worth of salary and average annual cash bonuses, and more than $2 million in stock awards). Furthermore, actual payouts to named executives would have been significantly higher, as these severance packages were based on the closing price of Ralcorp on September 30, 2010 ($58.48 a share), according to the 2011 proxy statement.

Read more at 24/7 Wall Street: Poor Judgement By Ralcorp's Board

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Donut Holes in Dunkin Brands' Books

2011-09-19T00:13:00.003-04:00

The asset side of Dunkin’ Brands’ (DNKN-$26.86) balance sheet is bloated, with 55% of total assets, or $1.7 billion, nothing more than intangibles (like franchise “rights” and trade names). Additionally, strip out restricted cash of $73.6 million (escrowed for franchisee advertising and gift-card programs), and working capital slips into jelly red by some $60 million.

Read more: Dunkin’ Donuts Problems Rise - 24/7 Wall St.

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Ground Zero: In Flanders Fields Remembered

2011-09-11T11:15:00.004-04:00

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields. ~ John McCrae (1872 - 1918)

Image: Courtesy of Christine Morgan Designs

The More Fashions Change at Talbots....

2011-09-07T00:27:00.003-04:00

In yet another reboot, actress Julianne Moore, 51, will be the new face of yet another splashy ad campaign over at The Talbots Inc (TLB-$2.53).

Constant brand tinkering has also blurred the “classic” clothing that Talbots is known for, and turned off traditional customers - just look at trailing 12-month operating metrics (ending January 2011): revenue growth was off 1.8% (compared to average gain of 5.9% in apparel industry); gross margin of 29.2% trailed industry average by 630 basis points; and, net operating margin was an anemic (1.0) percent, compared to an apparel industry gain of 3.6 percent, according to Thomson Reuters data.

How much “Bling! Bling!” is left on the apparel retailer's balance sheet?

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Is Gold Fields Ltd Mining Fools Gold?

2011-08-28T21:36:00.002-04:00

Though Gold Fields (GFI-$16.28) has a diverse global growth pipeline, with four major projects in resource development, plans to grow annual production to 5 million ounces by 2015 are underpinned on expanding base load capacity in South Africa, home to its biggest and longer-lived mines. The KDC, Beatrix and South Deep complexes — average mine lives of 18, 13 and 42 years, compared with 5.5 years in Australia or 15 years in Peru — produced in the aggregate 446.6 million ounces of gold, or 51.2% of total processed output in the quarter ended June 30.

However, the richest of these shafts are aging, with some veins from KDC 50 to 75 years old! Ramping up production at these world-class mines requires the miners to dig deeper — more than two miles down in many places — to find more gold. Consequently, total notional costs (extraction, general and administrative and capital expenditures) are rising. Weighted-average total costs at the South African operations have increased to $1,401 per ounce, double the cost of two years ago.

Read More at 24/7 Wall Street….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Falling Prices Nuke Recovery at ReneSola

2011-08-19T17:22:00.003-04:00

Lower feed-in-tariffs in European markets are masking economic realities pressuring margins at ReneSola (SOL-$3.39). Exacerbating a demand-driven environment is overcapacity, as mainland competitors flood both domestic and global markets with photovoltaic (PV) products, from crystalline wafers to modules. Supply gluts are accelerating the drop in average selling prices (ASP) quicker than previously estimated: The ASP of solar wafers and modules in the quarter dropped to $0.69 per watt and $1.53 per watt, respectively, compared to ASP of $0.87 and $1.72 in the first quarter.

Already one of the lowest-cost wafer suppliers, the company believes it can stabilize margins and mitigate falling end-demand prices through continued efforts at manufacturing cost reductions.

Can the China-based solar manufacturer deliver?

Read More at 24/7 Wall Street....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Blockbuster's New Return Policy: Surviving

2011-08-12T09:18:00.004-04:00

In a recent interview with the LA Times, Dish Network’s (DISH-$22.72) chief executive Joe Clayton articulated that the $320 million purchase of Blockbuster (BLOAQ - $0.07) last April was integral to transforming the second-largest U.S. satellite TV provider (after DirecTV) from a pay-television service (with about 14 million subscribers) into a bigger player in wireless, broadband and an emerging competitor of streaming, online entertainment content and DVD-by-mail services to industry bellwether Netflix Inc. (NASDAQ: NFLX).

What does this move mean for stockholders of the bankrupt video-rental chain?

Read more at 24/7 Wall Street….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Dividend Payout Hang-Up Expected at Frontier Communications

2011-08-08T15:14:00.005-04:00

Frontier Communications (FTR-$6.76) paid a total of $186.6 million in cash dividends in the second quarter, which amounted to an outflow of some 77% of free cash. Is the telecom carrier’s juicy 10.4% dividend yield sustainable, especially amid rising capital expenditures and falling earnings?

Read Full Story at 24/7 Wall Street….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Investors Roast on Earnings at Green Mountain Coffee - Ignore Future Threats

2011-07-29T01:20:00.004-04:00

Shares in Green Mountain Coffee Roasters (GMCR-$102.57) soared more than 16 percent, or $14.46, as investors responded enthusiastically to news of better-than-expected sales and net income for third-quarter 2011.

Nonetheless, the threat of direct competition from Starbucks (SBUX-$39.98) still percolates below the K-cup rim – come 2013, the beverage purveyor loses exclusivity on two key manufacturing/design patents.

Read Full Story at 24/7 Wall Street….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

10Q Detective Partners with 24/7 Wall St.

2011-07-26T06:55:00.003-04:00

In our continuing effort to offer our readers relevant and timely information from the best and brightest pundits on stock investing, the 10Q Detective is pleased to announce a distribution accord with 24/7 Wall St.

24/7 Wall St. is a financial news and commentary Web site that covers the stock market, industry research and government policy and data baring on the economy. A leading independent financial site, 24/7 Wall St. articles are syndicated by the most influential news sources, including Aol, MSNBC, Yahoo!, Fox Business, The Atlantic, Dow Jones' Marketwatch and The Huffington Post.

"Next week, see what new company 10Q Detective irritates and tousles with: "Tune-in each Monday morning, same 24/7 channel!"

Cancer Not Biggest Problem for Takeda's Actos

2011-06-20T11:16:00.003-04:00

More evidence suggests a disproportionately greater risk of bladder cancer from Takeda Pharmaceuticals’ Actos than with other oral diabetic medications.

Litigation from affected diabetics is to be expected, although a direct link between Actos use and bladder cancer hasn’t been definitively established. Consequently, the company has little to fear monetarily. Management does, however, need to worry about another ticking clock: Aug. 17, 2012, is when Watson Pharmaceuticals (WPI), Mylan (MYL) and Ranbaxy Labs (RBXLF) will launch the first wave of generic competitors to branded Actos in the U.S.

Read More: CBS Interactive ....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Can Skecher Shape-up Toning Shoe Sales?

2011-04-26T14:26:00.003-04:00

To Skecher USA’s (SKX-$20.50) credit, the shoe manufacturer recognized the willingness of American consumers (mostly women) to purchase footwear products developed to (allegedly) firm-up lower body muscles — and seized first-mover advantage in that niche. However, recent quarterly results suggest that the days of explosive sales and easy profits for its Shape-up product line are over.

Continue Reading at CBS Interactive

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No Growth Meltdown at Uranium Miner Cameco

2011-03-21T14:14:00.001-04:00

PR problems from the Japanese disaster, nuclear plant phase-out programs in several European countries, and failure of global economic accords to qualify nuclear power for greenhouse gas emission credits — notwithstanding these challenges, long-term fundamentals remain positive for Canadian uranium producer Cameco (CCJ-$30.00).

Investor fears that the more than 100 new nuclear-power stations (net) — planned or now being built worldwide (out to 2020) — would be dumped (killing future demand for uranium fuel) is highly unlikely. With emerging economies running energy deficits, nuclear remains part of any growth equation that looks to diversify away from carbon-based options.

Continue Reading at CBS Interactive....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

InterMune's Esbriet: Hype or Miracle Drug?

2011-03-18T12:50:00.002-04:00

InterMune’s (ITMN -$44.00) internal forecasts for its new pulmonary fibrosis drug appear even more bullish than Wall Street, with management pegging the market opportunity for Esbriet in the top 10 EU countries as high as $3 billion.

Both internal and Wall Street sales projections could prove too optimistic, however, considering the global idiopathic pulmonary fibrosis market was valued at $88 million in 2009 (nominal sales don’t recognize off-label RX use, but do underscore a market underserved due to a lack of approved products). Nonetheless, even with new growth drivers, such as Esbriet and other novel treatments in development, from LPA1 receptor antagonists to protein inhibitors, the combined U.S. and EU market for IPF is expected to climb no higher than about $462 million by 2017, according to industry analyst BioPortfolio.

As in Greek mythology, where Icarus ignored the warning of his father Daedalus, this unbridled optimism surrounding Esbriet runs significant risk of flying too close to the sun. Is hype outdistancing hope?

Continue Reading at CBS Interactive....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Is GE Tokyo's new Godzilla?

2011-03-16T14:51:00.004-04:00

Fear-mongering is spreading like the bubonic plague through the financial markets — quicker than the tsunami that hit Japan last Friday. Breathe slowly: General Electric ($18.95) hasn’t been bitten by any radioactive fleas!

Most of the financial exposure at Fukushima rests with GE’s joint-venture partner, Hitachi (HIT). The Japanese electronics giant owns 80 percent of the joint venture in Japan, while GE has a majority stake only in the U.S. nuclear market (60%) and certain other overseas markets, according to regulatory filings.

Read More at CBS Interactive....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Can Eni SpA Grow Production Without Libya?

2011-03-08T00:07:00.002-05:00

Libya is Eni SpA’s (E-$49.22) largest source of oil and gas, accounting for approximately 244,000 barrels of oil equivalent a day. With Qaddafi loyalists battling anti-government forces town-to-town, most of Libya’s aggregate production of 1.6 million barrels a day has been shut-in, according to Bloomberg and other news sources. Estimates are that about 50 percent of Eni’s Libyan production has been curtailed, too.

From Ecuador and Ghana, to China and Indonesia — the Italian energy conglomerate has its fingerprints on a balanced mix of potentially lucrative discoveries across the globe. By leveraging organic growth in the Americas, Western Africa and Central Asia, Eni expects to deliver more than 2.5 percent compounded average growth in production through 2014 — under a Brent scenario at $70 per barrel.

Continue Reading at CBS Interactive….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

McMoran ExplorationDoubles Down in Gulf Waters

2011-02-15T12:21:00.003-05:00

McMoran Exploration’s (MMR-$17.58) drilling strategy is focused on extracting reserves thought to exist below the “salt weld” — specifically, hydrocarbon-bearing sands in the “deep gas plays” (depths of 15,000 to 25,000 feet) and “ultra-deep gas plays” below 25,000 feet.

Management believes its successful strike at Flatrock — discovered in mid-2007 and brought online the following year — demonstrates the validity of its “deep gas” model.

Drilling almost four miles down, producing wells pumped out, on average, 272 MMcfe/d gross in the fourth quarter of 2009 ( 25 percent working interest). But by December 2010, production from prolific Flatrock gas field operations had fallen to 165 MMcfe/d (31MMcfe/d net to McMoran), due to persistent wellbore and remedial work-over issues.

In a recent interview with Oil & Gas Financial Journal, John Schiller, CEO of minority partner XX I (EXXI-$32.25), downplayed technological complexities involved in spudding sights like Blackbeard or Davy Jones, preferring to focus on reservoir potentials, improvements in seismic imaging and assessment tools, and past successes, such as Flatrock. He admitted, nonetheless, that ultra-deep drilling wasn’t for the “faint-hearted” and was capital-intensive.

Read More at BNET….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Food Costs Go "BOO!" to Chipotle

2011-01-11T00:43:00.002-05:00

Despite evidence presented to the contrary, Chipotle’s (CMG-$223.67) CFO Jack Hartung told analysts on the third-quarter 2010 earnings call that the company is planning operations this year with “overall food-cost inflation in the low-to- mid-single digit range.” Additionally, the company planned to be patient with pricing strategy, and would monitor competitor traffic patterns in response to their menu price hikes.

Hartung remained resolute in his belief that Chipotle had more “pricing power” than some of its competitors; all stores are company-owned, and it could more readily absorb higher food costs than franchise-operated chains (which pay royalties to the parent companies).

“Wait-and-See”? Yes – or No? Read More at CBSi > > >

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Chipotle Sales Growth Ain't No Jive

2010-12-31T14:25:00.003-05:00

Since opening its first restaurant in 1993, Chipotle (CMG-$214.00) has elevated a simple menu of burritos, tacos, and salads into meals that legions of loyal customers find zesty and more sophisticated in flavor.

By not straying from chairman and founder Steve Ells‘ original vision of making good, affordable Mexican food, Chipotle has emerged the market leader in the $4 billion Mexican-themed, fast-casual, dining segment, with 1,023 units opened in 33 states and Toronto, Canada (2) as of September 30.

Moving forward, can the national burrito chain continue its impressive store and sales-comp growth rates as competitors, such as Taco Bell, aggressively pursue discount pricing strategies to grab traffic gains at expense of the Denver-based Mexican food-operator? Read More at CBSi....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Time for Nokia to Read Smartphone Marketing Manual?

2010-12-16T01:42:00.003-05:00

According to Nokia’s (NOK-$9.86) internal estimates, overall industry cellphone volumes in third-quarter 2010 grew 14 percent year-on-year and eight percent sequentially to 364 million units. The company’s aggregate market share declined 400 basis points from last year to 30 percent, as aggressive price discounting from low-cost Asian competitors, and surging worldwide popularity for Apple (AAPL-$320.36) iPhones and smartphone devices equipped with Google’s (GOOG-$590.30) Android operating system continue to muscle in on the Finnish handset maker’s markets.

Will handsets equipped with Nokia’s Symbian operating system, such as the new N-8 smartphone, help to turn the tide?

Read More at CBSi ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Americans For Truth About Homosexualty: Don't Ask, Don't Tell For TSA Agents?

2010-12-10T20:12:00.005-05:00

Americans For Truth About Homosexuality (AFTAH) founder and president Peter LaBarbera asks: “Isn’t it just as inappropriate for a ‘gay’ male TSA agent to pat down male travelers as it is for a normal, heterosexual male TSA agent to pat down female travelers?”

“The reality is, most traveling men would not want Barney Frank to pat them down at the airport security checkpoint,” says LaBarbera. “Neither would it be fair to assign Ellen DeGeneres to pat down female travelers.”

Rather than worry about sexual orientation, should “Americans for Truth” organization devote more of its attention to other lies being spun on Capitol Hill to American airline travelers? Read More at CBSi….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

First Solar Looks to Secure Tellurium Supplies

2010-12-09T15:36:00.003-05:00

The global leader in sales of thin-film solar panels, First Solar (FSLR-$133.05) had to delay panel shipments last quarter due to capacity constraints. Complicating production problems, the utility-scale PV market is anticipated to surge next year, growing five-times faster than the rest of the industry, according to a recent analysis from IMS Research. With a growing backlog — 2.2 GW in North America alone — this new demand supports management’s recent decision to nearly double production, from 1.4 GW to more than 2.7 GW come 2012.

In a related development, Apollo Solar Energy (ASOE-$3.70) will provide an estimated $110 million of 5N (”five-nines,” or 99.999%) ultra-high purity tellurium — feedstock for cadmium telluride (CdTe), the semiconducting compound coating First Solar’s thin-film PV panels.

Tellurium is a relatively rare element, with more than 90 percent of global production recovered as a byproduct of copper mining and processing. Will the contract with Apollo Solar address First Solar’s need to secure forward supplies of its core photovoltaic? Read more at CBS Interactive ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Is TSA Our New Big Brother?

2010-11-30T17:02:00.003-05:00

Don’t wait for founder Julian Assange to publish confidential documents on Wikileaks.org for confirmation. But more and more people are becoming convinced that deployment of naked body scanners at our nation’s airports have nothing at all to do about protection from terrorists.

Is TSA the New Gestapo? Read More at BNET >>

MS Community Welcomes Ampyra -- Or Does It?

2010-11-23T15:58:00.002-05:00

As of September 30, some 31,000 folks with multiple sclerosis (MS) in the U.S. have tried the oral MS drug Ampyra, representing almost eight percent of all MS patients in this country, according to drug maker Acorda Therapeutics (ACOR-$26.25). In addition, the rate of “first refill” was 67 percent, based on weighted prescription trends going back to March.

“This is a significant penetration only seven months after commercial availability,” said Lauren Sabella, vice-president of commercial operations.

Ampyra (dalfampridine) is the first oral treatment prescribed to improve walking in patients with MS.

Are neurologists and patients readily embracing Ampyra, as claimed by management claim? Read More at BNET….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Bigger Problems For Solyndra Than Chinese Challengers

2010-11-17T03:03:00.002-05:00

Just weeks after opening the first phase of a new fabrication plant, called Fab-2, Solyndra said it was shuttering an older and less-efficient facility, Fab-1. Mostly built with a $535 million loan-guarantee from the Department of Energy, the thin-film solar panel maker is counting on the new plant to help it to reduce fixed costs and improve operating margins.

Headquartered in Fremont, Calif., the privately-held company manufactures cylindrical modules, incorporating copper indium gallium diselenide (CIGS) thin-film technology, for the commercial rooftop market.

With average selling prices falling faster than it can cut expenses, Chief executive Brian Harrison said the company would adjust “plans to be more in line with where the market is and where business was at the moment.”

Read More at BNET….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

EnCana Gasing Up For Its Future With Haynesville Play

2010-11-09T03:33:00.002-05:00

To date, EnCana Corp. (ECA-$29.52) has demonstrated success in offsetting the estimated 8 percent rise in oilfield services costs through operational efficiencies that have lowered year-on-year upstream spud and administrative costs by 17 percent (to $0.99 - $1.10 per Mcfe).

U.S. shale well-development and completion costs have fallen anywhere from 15 percent to 40 percent, depending on location. For example, in the Haynesville Shale play, well cost expenses dropped from $15.6 million in 2008 to $8.0 - $9.0 million per well during third-quarter 2010!

Could steep depletion rates typical of recent Haynesville wells topple the Canadian-based natural gas producer’s plans to grow its net recoverable gas reserves?

Read More at BNET

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Next -Generation 737 Grounded From Boeing 787 Turmoils

2010-11-01T23:41:00.005-04:00

Mounting development costs at Boeing (BA-$70.48) for its oft-delayed wide-body 787 passenger jet threaten not only profitability but distract and delay needed R&D for either enhancements to — or replacement of — its best-selling, single-aisle B737. Asset growth will require more than the $10 billion in liquidity on the balance sheet. Ergo, expect 737 development to be financed not from earnings but from illusionary inventory build (”deferred production costs”) and borrowings (more debt).

Read More at BNET ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Expect More 787 Dreamliner Delays From Boeing

2010-10-27T15:16:00.007-04:00

The Boeing Company ($70.38) is telling suppliers to halt deliveries of sections for its 787 Dreamliner for two weeks because of delays at the company that makes a key part for the tail of the plane. Management insists this latest delay won’t change first launch come February 2011. Do not believe it.

The cumulative financial effect of six prior delays, pre-production cost over runs, technical fixes, and penalties to airlines and suppliers – could the Dreamliner jet could turn to a nightmare for Boeing?

Read More at BNET….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

First Solar Still Dominates U.S. Utility-Scale Space

2010-10-01T13:25:00.004-04:00

A key provision of the American Recovery and Reinvestment Act of 2009 (ARRA 2009), which subsidized up to 30 percent of construction costs for PV plants (through Investment Tax and Production Credits), will no longer be available for pipeline projects that don’t start construction by year-end 2010. Consequently, First Solar’s (FSLR-$145.29) Topaz and Desert Sunlight won’t be eligible for these tax incentives, as both initiatives are still hung up in Dante-like circles of regulatory hell.

First Solar spokesperson Alan Bernheimer confirmed in an e-mail response “groundbreaking isn’t likely for either Sunlight or Topaz before 2010 year-end.” However, Bernheimer insisted both irradiation projects may still qualify for Treasury grants (instead of ITC) — if “certain expenditures are made before the year-end deadline.”

Absent stimulus extensions, First Solar will likely need to scale-back its solar park construction schedule, likely leading to inventory write-downs next year as module selling prices continue to decline. Still the Tempe-based PV module maker remains well-positioned to capitalize on an eventual grow out for domestic utility-scale developers. >READ MORE …..

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

How Sunny First Solar's Future in China?

2010-09-23T02:00:00.003-04:00

First Solar’s (FSLR-$143.55) CEO Rob Gillette told investors on the quarterly earnings call the thin-film, PV module maker expected to begin construction of an oft-delayed 2-gigawatt solar generation facility in Inner Mongolia, China early next year.

The project is to be built in multiple phases, with one GW of power to come online by 2014, and the second GW scheduled for completion by 2019, according to the “Cooperation Framework Agreement” signed last November.

Doing business in China would require “sharing of technology” with its local partner(s), according to regulatory filings. Instead, should Gillette and his staff scrub the entire mission? Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Message to President Obama on September 11: "Never Forget" - Voters Won't

2010-09-11T02:56:00.006-04:00

Obama told a White House news conference yesterday: "If you could build a church on a site, you could build a synagogue on a site, you could build a Hindu temple on a site, then you should be able to build a mosque on a site."

The U.S. president’s support for a controversial plan to build a mosque and Islamic center just blocks from Ground Zero – contrary to the almost 70 percent of Americans who oppose construction – is trumpeted as a defense of religious freedom. Talk about a political “tin ear.”

"Sean, it's me. I just wanted to let you know I love you and I am stuck in this building in New York. A plane hit, or a bomb went off - We don't know. But there's a lot of smoke and I just wanted you to know I love you." Melissa Harrington Hughes, 31, trapped on the 101st floor of the World Trade Center, Tower One, after the first plane hit.

Flight 93 flight attendant Ceecee Lyles, 33 years old, in an answering-machine message to her husband: "Please tell my children that I love them very much. I'm sorry, baby. I wish I could see your face again."

Why is it that the trade of lying seems to come more naturally to politicians? Shame on you, Mr. President!

LDK Solar Swimming Against Downstream Profit Currents

2010-09-03T13:11:00.003-04:00

LDK Solar (LDK-$7.87) said module shipments more than doubled in second-quarter 2010 to 74 megawatts. However, chief financial officer Jack Lai has yet to deliver on his promise that moving downstream into module production would position the company to improve profitability across the solar supply chain.

Although average selling prices for modules increased 3 cents sequentially to $1.77 per watt, selling margins fell 70 basis points quarter-to-quarter to 7.6 percent, mostly due to increases in non-production costs.

With other Chinese-based competitors aggressively ramping up production capacity, control over pricing will likely become more demand-dependent -- and short-lived. Ergo, successfully executing on the profitability objective could prove even more elusive.

Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Can Obama Keep Union Support for GM Until Feds Bail Out?

2010-09-01T03:11:00.005-04:00

Is General Motors on the recovery road? In July 2009, the “new GM” emerged from bankruptcy after a short 39 days. One-year later, it’s reporting impressive profits of $2.2 billion for first-half 2010….

Although collective bargaining agreements with the International Union and UAW don’t expire until September 2011, continued job cuts and replacement of union with nonunion labor could force union leadership to threaten walkouts at GM — even though the UAW had previously agreed in principal not to authorize any strike prior to 2015.

Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Will Obama Catch a Cold if GM IPO Sneezes?

2010-08-25T13:34:00.005-04:00

Retail buyers participating in General Motors’ public offering should be aware that there exists a strong likelihood that their ownership stake could be subject to immediate dilution, depending on how the share price trades in the secondary market: upon the exercise of warrants held by current stakeholders, at strike prices ranging from $30 to $126.92 per share, up to 106 million additional shares could hit the outstanding stock float, according to GM’s preliminary prospectus.

Buried deep in the more than 700 pages of the automaker's ’s prospectus was a warning, too:

the bankruptcy court could issue more than $37 billion in third-party claims pending – probably in the form of stock and warrants (for additional stock payable in the future at a pre-set price). In other words, buyers of the common stock in the initial offering would face even more dilution.

Are officials in the Obama administration pushing to unload some of its 60.8% share in the "new GM" to show taxpayers before the November mid-term elections that the $50 billion of their monies invested in the venerable automaker (to stave of liquidation) was a wise decision from the “anointed” one? Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

BP Looks To Sink Transocean in Fed Hearings

2010-08-23T11:28:00.003-04:00

Transocean (RIG-$51.62), the world’s largest offshore drilling contractor, warned in its earnings filing that British Petroleum (BP-$36.34) had reservations and would likely seek to avoid its contractual responsibilities, including protection from financial penalties and liabilities resulting from the Macondo well disaster in the Gulf of Mexico.

BP’s conviction that it doesn’t have to honor terms of the Deepwater Horizon drilling contract is motivated by the least noble of all great actions — greed:

Prior to the capping of the well on July 15, a federal task force estimated up to 173 million gallons escaped from the damaged well into Gulf waters, less captured or contained crude. Under the Clean Water Act, BP could be fined $4.5 billion, or as much as $17.6 billion (if found guilty of committing gross negligence).

Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Byetta Safety Data To Benefit Challengers Januvia and Victoza

2010-08-16T05:08:00.002-04:00

Looking to rebuild physician confidence in Byetta injection, Amylin (AMLN-$19.69) and Lilly (LLY-$35.70) directed much of their lecture and lobbying time at the 2010 ADA conference addressing safety and tolerability issues that have dogged their type-2 diabetes treatment since soon after its June 2005 launch.

Presentations at the Orlando meeting showed Byetta-treated patients were at no higher risk for renal or pancreatic problems than existing treatments — including, Merck’s oral Januvia and Novo Nordisk’s in-kind Victoza injection therapy. Ergo, with no new sense of urgency for Byetta use – all Amylin and Lilly accomplished was to provide additional motivation for physicians to prescribe challengers Januvia and Victoza….

Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Byetta Losing Out To Novo's Victoza

2010-08-11T00:27:00.004-04:00

Clinical data supporting the ability of type-2 diabetes drug Byetta to address the unmet need of glucose control with potential weight loss quickly became a winning narrative for Amylin Pharmaceutical (AMLN-$$20.08) and its marketing partner Eli Lilly (LLY-$37.77). The GLP-1 agonist became the fourth most-prescribed branded product for type 2-diabetes — after Actos, Avandia and Lantus — within 18 months of its June 2005 launch.

Prescription momentum swung away from the injection med after reports began to surface of a link between Byetta use and altered kidney function. Throw in concerns of pancreatic inflammation - U.S. sales for the GLP-1 agonist peaked in 2008 at $678.5 million.

The number of patients treated worldwide with Byetta dropped from 470,000 in 2007 to 440,000 in 2009, according to data obtained by Wolters Kluwer.

Launched in early 2010, Novo Nordisk’s (NVO-$90.37) GLP-1 agonist Victoza, has already passed Byetta in new patient starts …. Why? Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Food and Water Watch Looking to Shutter BP's Atlantis Field in Gulf

2010-08-04T12:24:00.002-04:00

Food & Water Watch has accused BP (BP-$40.00) and its minority partner, Melbourne-based BHP Billiton (44% working interest), of operating the Atlantis platform in the Gulf of Mexico without proper documentation required by law – and necessary for safe operation (including maintenance).

In addition, the group claims that the Interior Department and Secretary Ken Salazar have done almost nothing to “protect the Gulf from another potential calamity,” and it’s urged members of Congress to either legislate — or formally request President Obama to issue an executive order — shuttering BP Atlantis until legally required safety documentation is presented for public review.

Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Qnexa FDA Committee Rejection Focuses Attention on Vivus' Survival

2010-07-23T18:53:00.004-04:00

So confident was Vivus (VVUS-$5.75) in the efficacy of Qnexa across a range of overweight or obese patients (with or without co-morbid conditions, from diabetes to hypertension), management deferred entering into any clinical and marketing partnership(s) until after the July 15 meeting of the FDA’s Endocrinologic and Metabolic Drugs Advisory Committee.

Big Mistake! Although acknowledging an unmet need in obesity treatment - and Qnexa's impressive efficacy, average weight loss was 14.7 percent (37 lbs) - panel members voted 10 - 6 against approval, voicing concerns about Qnexa’s risk of birth defects, increases in adverse psychiatric events, and a dearth of long-term data on cardiovascular outcomes (more than 56 weeks).

What now for Vivus and its anti-obesity drug Qnexa? http://www.bnet.com/blog/sec-filings

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Bookmakers Predict Firing of BP CEO Hayward

2010-07-20T14:27:00.005-04:00

Senator Frank Lautenberg (D-NJ) has joined other congrssman calling for an investigation into whether BP (BP-$35.75) helped to secure the early release of Lockerbie terrorist, Abdel Basset al-Megrahi, the Lockerbie bomber freed by Scottish authorities last year.

Was there a quid pro quo — Did BP broker the early release of Megrahi, a former Libyan intelligence officer convicted back in January 2001 for his role in the 1988 terrorist bombing of Pan Am Flight 103 over Scotland, in exchange for lucrative Libyan offshore exploration contracts?

Chief executive when the alleged influence peddling went down – Tony Hayward. An Irish bookmaker is taking bets Hayward won’t last the year running BP…. http://www.bnet.com/blog/sec-filings

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Algae Farmers Behind BP Oil Spill in Gulf -- Or Was it Armed Dolphins?

2010-07-15T16:27:00.005-04:00

What’s happening off the Louisiana coast wasn’t from incompetence, but from a purposeful desire – from the Obama administration and an industrial consortium ranging from BP ($38.92) to Goldman Sachs (GS-$145.22) – to spark growth in a nascent alt-renewable industry: algae farming, according to one online conspiratorialist.

Did Illuminati-types press the Coast Guard to restrict media access in affected spill zones of the Gulf of Mexico? Was the Deepwater Horizon explosion really an accident?

http://www.bnet.com/blog/sec-filings

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Obama Drilling Plan Could Cripple Noble Drilling's U.S. Operations

2010-07-12T14:46:00.003-04:00

Should the Obama administration win its bid to impliment a new deepwater drilling ban in Gulf waters — Noble Drilling (NE-$31.87) could find itself with idled rigs, with limited options for favorable contract renewal terms.

Noble had six rigs operating in U.S. Gulf waters, prior to the initial deepwater drilling ban. A win in the courts for the Obama administration — i.e., a reinstated moratorium — could have immediate negative financial implications for Noble, as approximately 30 percent of its approximately $7.5 billion in contracted drilling backlog comes from U.S. Gulf of Mexico operations.

Need further convincing that an offshore drilling moratorium could cripple U.S. exploration activities: After a force majeure declaration, Diamond Offshore Drilling (DO-$64.24) is moving the Ocean Endeavor rig, which had been contracted at about $290,000 per day from Devon Energy (DVN-$63.31) in the Gulf of Mexico, to Egypt under a new deal with Burullus Gas Co. The new day rate is only $225,000, said a spokesman for Diamond, the second-largest drilling contractor by market value.

As the Endeavor rig is contracted overseas through mid-2011, don't expect to see this – or other rigs looking to leave U.S. waters – drilling for oil here at home anytime soon.

http://www.bnet.com/blog/sec-filings

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

'Friends of Obama' Profit From BP Oil Spill in Gulf -- No Accident?

2010-07-09T15:34:00.004-04:00

BP plc (BP-$33.90) has removed, on average, only about 60 percent of the amount of oil - it promised federal regulators - spilling daily into the Gulf of Mexico. Throw in reports that the Coast Guard has prevented public access to spill zones, and a conspiracy dimension emerges that the April 20 explosion onboard Deepwater Horizon was no accident.

In a March report that was not questioned by federal officials, BP said it had the capacity to skim and remove 491,721 barrels of oil each day in the event of a major spill. As of Monday, with about 2 million barrels released into the Gulf, the skimming operations have averaged less than 900 barrels a day, according to a CBS News report.

Feeding online speculation of a conspiracy - or cover-up - are published stories from affected Gulf Coast regions that federal officials are restricting the public - including news photographers and reporters - toward approaching within 65 feet of any response vessels or booms on the water or on beaches.

Internet discussion boards are buzzing with speculation that the federal government's supposed slow response in accepting foreign help - in addition to blocking state and local attempts at clean-up - was timed to coincide with the start of hurricane season, which runs through November. Notwithstanding dearth of hard evidence, word is spreading virally online that sinister design motivated the current crisis and subsequent inaction - one just has to "connect the dots."

Irrespective of whether or not Barack Obama's henchmen sunk the Transocean (RIG-$51.95) - leased semi-submersible rig, accusatory fingers point to the White House for manufacturing a crisis to advance an unpopular climate agenda, according to the Economic Collapse blog:

Never one to to allow a "good crisis" to go to waste, Barack Obama is pledging to use the BP oil spill in the Gulf of Mexico as an opportunity to push the U.S. Congress to pass his controversial climate bill.

Prior to the oil spill, polls showed Americans weren't particularly enamored with issues like carbon dioxide emissions or global warming. A March 2010 Gallup survey, for example, found that 48 percent of Americans believed the seriousness of global warming claims were exaggerated.

Against the backdrop of the oil spill, Democratic Senators John Kerry and Joseph Lieberman released the first draft of the American Power Act on May 12, without support from any Republican senators. The American Power Act would establish a nationwide cap-and-trade system that would regulate the amount of carbon dioxide and other greenhouse gases emitted into the atmosphere by big businesses.

It would be useless to perceive how things ‘actually look' as it would be to watch the random dots on untuned television screens. ~ Artificial intelligence expert Marvin Minsky

With oil recovery efforts coming up short, could Professor Minsky be wrong in thinking "how things look" can't be inferred from connecting seemingly isolated events?

Carbon emission (offset) credits would be traded on the Chicago Climate Exchange (CCX), the only legally binding (and recognized) greenhouse gas exchange in North America. The CCX derivatives market could be worth an estimated $10 trillion to its owners, according to principal founder Richard Sandor.

As detailed by Victor Thorn in an intriguing online post "Was BP Oil Spill an Inside Job?", most - if not all - holding CCX investment stakes are ‘friends' of the Obama administration, including: erstwhile VP Al Gore, former Treasury Secretary Henry Paulsen (retired chairman and CEO of Goldman Sachs), and President Obama's favorite Chicago-based charity Joyce Foundation, (which has a donor relationship with John Ayers (brother of the president's (alleged) friend and 1960's Weather Underground terrorist Bill Ayers).

Beltway insiders aren't the only ones who stand to benefit in the wake of the oil spill. President Obama has publicly vilified Goldman Sachs (GS-$138.00) as exemplifying all things "bad" about Wall Street. For example, the company's senior executives earned millions apiece in bonuses from the mortgage-backed securities scandal. Could there be a rhyme to the investment banking firm's reason for being Obama's whipping post? Goldman Sachs owns 10 percent of CCX, worth an estimated $1 trillion.

Goldman Sachs' proprietary trading unit profited from the spill, too, earning upwards of $266 million from a short-sale position held in BP stock, according to regulatory filings reviewed by RawStory.com.

It's not just politics that makes for "strange bedfellows" (to paraphrase essayist Charles Dudley Warner). Dots are being connected that show gains to be had by energy-related concerns too. In a recent posting, I mentioned that investigators were examining the role of Dick Cheney and his former employer Halliburton (HAL-$28.70) in the undersea spill, as the oil-service company was responsible for cementing the blown-out drill hole. Suspicious Internet minds believed Halliburton intentionally triggered the catastrophic blowout (using substandard concrete slurry when cementing the spaces around the piping in the wellbore casing) to adversely affect U.S. oil production - looking to boost oil prices (and profits).

RawStory.com judiciously noted in a posting last month how Halliburton stood to make money from the spill through another venue - the clean-up itself: on April 9, just 11 days before the Deepwater rig explosion, Halliburton bought oil-services company Boots & Coots for $240 million. A provider of equipment and services for well fires (and inspiration for a 1968 film called Hellfighters, starring John Wayne), the acquired company also has noted global expertise in well integrity design and spill containment. And, yes, Boots & Coots has a contract with BP for the Gulf oil spill.

Unfortunately for conspiracy buffs, circumstantial evidence alone isn't enough to convict. Nonetheless, a perverse sense of justice could still be had for those "who believe." As predicted by the "law of unintended consequences," drilling moratoriums and mangled reputations were not what the key protagonists (BP and Pres. Barack Obama, respectively) envisioned for their roles in this tragicomedy playing out in the Gulf of Mexico.

Related:

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Image Source: Cap & Trade photo courtesy of "C3 (Climate Cycles Change) Headlines"

Did Wrath of God Befall BP's Deepwater Horizon rig in Gulf?

2010-07-08T07:58:00.003-04:00

Has President Obama’s poor treatment toward Israel contributed to BP’s (BP-$33.19) catastrophe in the Gulf?

As if President Obama didn’t already have enough on his plate to worry about, now comes word from the socially conservative WorldNetDaily promulgating a spiritual connection. In a video narrative, Florida-based Baptist preacher Carl Gallups warned the wrath of God befell upon Obama. Pastor Carl recounted from the Book of Genesis an ancient promise God made to Abraham, the patriarch of the 12 tribes of Israel…

For more on this spiritual wrath and other conspiracy theories, click through to http://www.bnet.com/blog/sec-filings
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No Relief for British Petroleum in Sight

2010-07-02T18:34:00.003-04:00

BP plc's (BP-$28.50) first relief well has detected metal casing from the Macondo wellbore in the Gulf of Mexico. A scheduled attempt to intersect and plug the damaged well come August, however, could be delayed if the U.K.-oil major fails to address the concerns of a congressional subcommittee investigating the Deepwater Horizon spill.

Rep. Ed Markey (D-Mass.), who chairs the House Energy and Environment Subcommittee, is growing impatient with BP's remarked lack of preparedness for all things "oil spill." For example, at a House hearing held yesterday, Markey and other committee members heard BP America CEO Lamar McKay confess the company has no response plan in place, should a hurricane or tropical storm pass over the oil spill zone.

The well reached a depth of 16,275 feet on June 23 before a ‘ranging' run spotted the approximate locale of the MC (Macondo) 252 well. As explained by Kent Wells, BP senior vice president in charge of subsea spillzone efforts, electromagnetic range testing isn't an exact process. It requires:

Placing a cable into the end of the wellbore;
Sending out an electric current; and,
Picking up the subsequent magnetic field signature around the wellbore.

Although the first well has closed to within about 20 feet horizontally of MC-252, drilling in rock several miles down to determine the exact location of 6-inch piping in the damaged wellbore is worse than stumbling in a darkened gymnasium -- limited to using only one hand, walking along the four walls -- to find the light switch. Nonetheless, the company remains ahead of schedule. Subsequent drilling and ranging runs will continue over the next few weeks, steered toward a target intercept depth of approximately 18,000 feet, said Wells.

Video feeds from the sea floor are showing hydrocarbon columns bubbling up from fissures removed from the drill site. There are worries the original methane gas explosion aboard the Deepwater Horizon rig has compromised the structural integrity of the well and pipe casings. Echoing this concern, Markey forwarded a letter of inquiry to BP's Tony Hayward dated June 23, demanding the chief executive provide documentation on wellbore condition and relief well efforts, including answers to:

Likelihood that filling the relief wells with drilling mud will result in fractures and a subsequent loss of pressure;
Measurements, images, and other documents related to the condition of the casing inside the wellbore, as well as any future plans for such measurements going forward;
Any survey(s) to identify hydrocarbon leakage from the sea floor; and,
All documents related to the geologic formation in which the Macondo well is located, including reserve estimates of the total amount of oil and gas contained in the target reservoir.

The goal is to drill the first relief in parallel with the damaged piping -- to within five feet horizontally and 200 feet vertically of the intercept point.

During one of his daily briefings with the press last week, incident commander Admiral Thad Allen, said "kill" operations were expected to begin the second week of August, when BP will try plugging the old well with heavy drilling mud and cement.

Given its pathetic record of transparency, whether Hayward and the board can provide assurances that hydrocarbons flowing directly into the ocean from the wellbore or the sea floor won't complicate plug activities is doubtful. Efforts to stop the spill in the Gulf are being described as "chaotic." But it's the new Bureau of Ocean Energy Management (erstwhile Minerals Management Service) charged with approval and oversight of BP's contingency plans.

Whether President Obama chooses to heed the cautions of Markey or the Ocean Bureau is entirely his call -- after all, he is the boss of the regulatory agency. This being a mid-term election year, in my opinion, the president might just err on the side of caution and request BP management to delay the intersect of the first relief well with the damaged wellbore until BP starts acting like a more responsible partner in this cleanup fiasco.

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Hurricane Alex Isn't BP's Only Worry These Days in Gulf Waters

2010-06-30T18:27:00.004-04:00

BP plc (BP-$28.88) spokesperson Toby Odone acknowledged to reporters last week that the 45-ton blow-out preventer sitting atop the damaged Macondo wellbore was leaning, up to 15 degrees by some accounts.

We know little about the underlying geology of the spill site in the Gulf of Mexico, as BP has held that information close, claiming that it’s “proprietary” data. Scientists are clamoring for BP to publicly release geological survey data on the underlying “Lower Teriary” formations (rock layer formed 65 million to 250 million years ago). Remotely operated vehicles (ROVs) are streaming video feeds of high pressure columns of oil and gas bubbling up from fissures in the sea floor — which outside scientists fear could be flowing from stress fractures in the underground piping.

Could an already weakened sea bottom beyond the wellbore (eroded by up to 100,000 pounds per square inch of corrosive fluid pressure seeking escape upward from the leaks in the undersea piping) crack wide open like ice on a pond, spewing millions of additional barrels of oil into Gulf waters? Read More …

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

U.S. Drill Plan Impacts Transocean's Drilling Worldwide

2010-06-24T13:42:00.002-04:00

Transocean’s (RIG - $52.00) ‘at-risk’ contract backlog from U.S. offshore Gulf operations was a nominal 6.4 percent, or $1.8 billion out of total company backlog of $27.9 billion as of June 1. However, should the Obama administration gain the upper hand in reinstating its deepwater drilling ban in offshore U.S. waters, profit-performance could be impacted on a global scale.

Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

BP's Oil Spill Costs in Gulf Accelerating -- Next Stop: $3.0 Billion

2010-06-23T00:19:00.003-04:00

British oil major BP (BP-$29.68) said response efforts toward the oil spill in the Gulf of Mexico – including containment, relief well drilling, grants to the Gulf states, and payment claims – had soared to approximately $2 billion so far, up from $450 million on May 13.

Sanford C. Bernstein Ltd. expects the bill to rise to $3.5 billion by the time relief wells are scheduled to stop the flow of oil and gas from the sea floor in August.

Will BP bankruptcy talks resurface if the company can't turn the corner - and capture more oil than what's spilling into Gulf waters? Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

BP Walking Plank to Insolvency?

2010-06-18T00:42:00.002-04:00

As of June 14, BP (BP-$31.71) has paid out approximately $1.6 billion – spill response, containment, relief well drilling, grants to affected Gulf states, claims paid, and federal — in costs related to the oil spill in the Gulf of Mexico. In addition, BP is financially vulnerable to substantial putative penalties, even without a showing of wrongdoing on its part.

BP shares have lost approximately $90 billion in value, or 51 percent, since the Deepwater Horizon accident touched off the Macondo field blowout in late April.

Cost to bond traders for five-year insurance protection against nonpayment (per contract covers $10 million in face value), better known as credit default swaps (CDSes) is soaring: the price to insure $10M in BP debt this morning was $575,000, up from $43,200 on April 22, the day the Transocean -leased semi-submersible drilling rig sank.

Insurance on BP’s one-year swaps is more expensive than for its five-year debt, another sign of the company’s alleged “short-term credit distress” risk. Is the U.K.-based oil major walking the plank to bankruptcy? Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

What Do Supermodel Gisele Bündchen, Suntech Power, and Yingli Green Energy Have in Common?

2010-06-10T12:47:00.005-04:00

Does anyone remember the good old days – back in 2007 and 2008 – when über-supermodel Gisele Bündchen demanded to be paid in euros? So keen was she on avoiding the US currency because of uncertainty over its strength…. Flash forward to 2010.

Suntech Power Holdings (STP-9.33) could see a 79 percent drop in profits if the euro establishes U.S$1.25 as a new ceiling – even with hedging efforts – according to a recent Bloomberg Businessweek interview with Barclays analysts.

That the falling euro has been difficult to manage is further underscored by recent efforts at solar-cell rival, Baoding-based Yingli Green Energy Holding (YGE-$9.67):

Continue Reading at BNET ENERGY….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

BP Acting Like Three Stooges -- Why Not Learn From Them, Too?

2010-06-08T02:57:00.004-04:00

For weeks BP and the White House had confidently told the American public that the oil spewing out of the busted wellbore from the sunken Deepwater Horizon rig was 5,000 barrels per day (210,000 gallons). An internal BP document, dated April 27, showed that number to be misleading. Rep. Ed Markey said at a House Natural Resources Committee meeting on May 26 that BP scientists actually thought the leak to be upwards of 14,000 bpd. Outside analysts estimate the daily spill rate could be much higher — up to 95,000 barrels, or nearly 4 million gallons!

"If at first you don't succeed, keep on suckin' til ya do suck seed!" ~ Curly

Is President Obama just "a victim of coicumstance?" With his poll numbers sinking — and no tangible evidence that BP is even close to plugging the spill — the Obama administration has turned to friends in Hollywood for help. Word has leaked that Avatar director James Cameron is now consulting with U.S. officials on possible solutions to the spill.

Instead of Cameron, maybe its time to call in Moe, Larry, and Curly: “At yer service, day or night, we do the job and do it right...”

View Three Stooges Video on How to Plug Oil Gusher ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

LDK Solar Forecasting Profitable 2010

2010-06-08T02:28:00.005-04:00

LDK Solar (LDK-$5.10) believes firmer selling prices and falling production costs will help the wafer and module maker repair compressed margins in the next few quarters.

Despite market fears that demand would drop off after incentive cutbacks in essential European markets, such as Germany and Italy, come second-half 2010, chairman and CEO Xiaofeng Peng is calling for wafer and module shipments of 1.7 GW to 1.8 GW and 200 MW to 300 MW, up from 2009 year-ending estimates of 1.1 GW and 34 MW, respectively.

“The improvement in ASP trends throughout the year should allow us to expand our gross margin in the next few quarters,” said chief financial officer Jack Lai on the recent earnings call with investors. “Recent polysilicon feedstock prices reportedly below inventoried first-quarter costs of $65 per kilogram should help to boost gross margins in the next few quarters by as much as 300 basis points, up from the 15.7 percent posted in the first quarter.”

Will innovative manufacturing gains, such as increased throughput and conversion efficiency yields, help LDK avoid the commodity cliff being predicted for solar wafer makers by many semiconductor industry pundits? Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Eurozone Currency Weakness is Latest Problem for Trina Solar and Other Chinese Module Makers

2010-06-08T02:07:00.009-04:00

China-based Trina Solar (TSL-$15.73) is a module maker whose currency mismatches are overshadowing planned shipments of 750 MW to 800 MW for the whole of 2010 (year-on-year growth of 88 percent to 100 percent). The company has significant exposure to Europe, where it derives more than 80 percent of sales. Unfortunately, even active hedging efforts won’t shield its financials: approximately 60 percent of second-quarter euro exposure is covered at contract rates of $1.30-$1.40, according to chief financial officer Terry Wang.

Total earnings for 2010 could fall more than 84 percent, if the Euro averages less than $1.25, according to Barclays Capital analysts.

The company’s guidance for gross margin in second-quarter 2010 is in the high 20 percentages. With the euro settling below $1.20 in Monday’s trading, could Trina Solar and a host of other China-based solar manufacturers face margin compressions worse than even those forecasted by Barclays Capital? Read More ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Pivotal Meeting for Novartis' MS Drug Gilenia Next Week

2010-06-02T23:28:00.002-04:00

The FDA has extended the review period for Novartis AG’s (NVS-$45.97) investigational multiple sclerosis (MS) drug Gilenia by three months.

Efficacy, however, is unlikely the point of contention. Regulators and physicians alike are likely concerned on scaling the balance of efficacy and the drug’s long-term safety profile. Similar to Merck KgaA’s cladribine, Gilenia interferes with the proliferation of certain white blood cells, particularly circulating lymphocytes (T cells and B-cells), which are thought to be involved in the immune-mediated and inflammatory pathological process of MS. The immune suppression activities of both experimental drugs theoretically could leave MS-treated patients vulnerable to opportunistic infections and cancers.

The Advisory Committee meeting is still planned for June 10 to discuss the benefit/risk profile of Gilenia. Assuming no new evidentiary surprises with safety, will the drug hit U.S. pharmacy shelves by year end? Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Financial Transparency and Change Coming to LDK Solar? Thing Again.

2010-05-26T03:34:00.002-04:00

That LDK Solar (LDK-$5.55), the world’s largest producer of multicrystalline solar wafers, kept up with most of its peers and blew past consensus sales and earnings estimates for first-quarter 2010 wasn’t too much of a surprise. The anticipated reduction of Feed-in-Tariffs (FIT) in Germany come July prompted customers to accelerate photovoltaic (PV) installations before that solar subsidy became financially less attractive.

Quarterly revenue rose 22.7 percent year-on-year to $347.6 million and reported net income was $7.2 million, or six cents a share, handily beating forecasts of $325.8 million and share-net of a penny, according to analysts surveyed by Thomson Reuters.

Given an improving revenue and earnings picture, will the integrated solar cell maker finally move to improve its balance sheet health – as it had repeatedly promised to do numerous times in quarters past? Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Worried About Man-Made Disasters? Avoid Draw Muhammad Day

2010-05-21T01:23:00.008-04:00

May 20 is being celebrated around the globe -- by infidels -- as "Draw Muhammad Day."

In honor of Draw Muhammad Day, we offer up this humble quote attributed to he who the fanatically devoted kill -- in his name -- and a shot at martyrdom and 72 virgins: "Worship God as though you see Him, and if you cannot see Him, then indeed He sees you." This quote is attributed to which religious leader:

Moses ___

Muhamad ___

Jesus ___

BP Finger-Points Blame on Transocean

2010-05-17T11:05:00.003-04:00

Although the investigation into the oil spill disaster in the Gulf of Mexico is still in the early stages, standard industry practice is such that unless BP can prove gross negligence by Transocean (RIG-$66.10), it and minority interest-holder Anadarko Petroleum bear ultimate liability for clean-up and recovery costs for the environmental damage resulting from the spill, not to mention likely punitive damage payments to all affected parties, such as fishery and tourism industries.

In predictable fashion, the finger pointing has already begun. Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

National Enquirer Offers Million Dollar Bounty For Alleged Obama Love Tryst Video

2010-05-13T06:16:00.006-04:00

In March 2010, average weekly print circulation — newsstand and subscription — of the National Enquirer declined year-over-year 16.1 percent to 732,000 copies. By comparison, total paid and verified weekly circulation averaged about one million in 2007, according to media observer Audit Bureau of Circulations (ABC).

Declining circulation isn't just endemic to the Enquirer. Overall average paid daily circulation for the top 25 dailies fell 8.7 percent year-over-year for the six months through March, according to ABC. Weekday sales at the New York Times (NYT) and the Washington Post (WPO) fell 8.5 percent and 13.1 percent to 951,063 and 578,482 copies, respectively. In fact, only the The Wall Street Journal managed to eke out a gain, of about 0.5 percent.

What the Enquirer needs to pump up weekly tabloid sales is a good scandal – say, on the order of John Edwards and his love child. The Enquirer’s latest investigative controversy is a rehash of an alleged presidential cheating scandal between then Senator Barack Obama and a former campaign aide, Vera Baker (circa. 2004). The paper has offered a $1 million reward for alleged security video footage of the two entering a Wahington DC hotel together.

Can the Enquirer survive in the age of media-savvy competitors like TMZ and Perez Hilton? "Enquirering Minds Want to Know!"

Post Update: An "open-minded" reader -- (after looking at his blogroll links I suspect he probably thinks that the grand social experiments engineered by the likes of Chairman Mao and Stalin - in which millions were either slaughtered outright or starved to death very slowly -- were wonderful attempts towards the utopian plain of equality) -- had this assessment of my Nat'l Enquirer blog posting:

Ted K: I'm ashamed to say I had you on my blogroll. Not after this trash. Good luck keeping your blog going with this type "fair."

Me: Hey, Ted! What do you call a Muslim woman who previously favored western-style clothing, but after having an arm chopped off by the Iranian religious police only wears a burqa?

Answer: "Educated!

There you go -- How's that for transparency and fairness? Oh, my mistake -- only President Obama has a lock on those virtues.

Read More at BNET MEDIA > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

More Calls For CEO Blankenship's Resignation at Massey Energy

2010-05-11T01:33:00.003-04:00

It has become a ritual at Massey Energy’s (MEE-$35.77) annual shareholder meeting for interest groups to stage protests and call for the resignation of chairman and chief executive Don Blankenship. Environmentalists and union activists have long alleged that Blankenship habitually fights against needed regulation of strip mining (gutting mountain tops for coal removal) and enforcement of safety rules that protect the miners – a disdain motivated by his desire to maximize the coal operator’s profits, according to his detractors.

An explosion at a West Virginia coal mine last month killed 29 miners and is expected to interrupt metallurgical coal shipments and sales through year-end 2010. Could Blankenship face additional calls to resign – this time from members of the board of directors?

Read More at BNET ENERGY > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

"Spill, Baby, Spill" - Or Not, Says BP

2010-05-07T07:53:00.003-04:00

British energy giant BP ($49.78) initially accepted responsibility for the April 5 explosion aboard the offshore drilling rig Deepwater Horizon. However, with efforts to shut down the well failing, and more than 5,000 barrels (210,000 gallons) of oil per day still spewing out of the broken pipe – and recovery costs climbing to $6 million a day and beyond – the British energy giant might be having second thoughts about paying all “legitimate and objectively verifiable claims.” In television interviews this week, BP executives noted that the disaster, in which 11 workers died, wasn’t directly BP’s fault, as drilling contractor Transocean was operating the rig on its behalf.

The spill is disastrous to the locals in coastal towns. The fishing industry in Louisiana could be impacted to the tune of $2.5 billion, and Florida’s tourism losses are expected to total around $3 billion, according to Sierra Club executive director Michael Brune.

How much will this spreading oil slick – potentially rivaling the 1989 Exxon Valdez spill into Prince Edward Sound, Alaska – ultimately cost BP, less insurance? Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Can Bristol Myers' Drug Pipeline Save Company?

2010-05-03T06:29:00.004-04:00

Bristol-Myers Squibb (BMY-$25.31) derives almost 47 percent of its revenue from two key products: Plavix (sales of $6.1 billion in 2009), a platelet aggregation inhibitor for the prevention of stroke, heart attack and vascular disease, and the anti-hypertension drug Avapro ($1.3 billion). Chief executive officer Lamberto Andreotti says the company’s ambitious go-to-market model will mitigate expected erosion in sales and share-net earnings from the lost marketing exclusivity of these cardiovascular drugs come 2012. Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Forget Fed Loans -- Think Cool Cup Holders at GM

2010-05-03T06:18:00.002-04:00

General Motors (GM) denies a deliberate intent to mislead the American public with recent televised advertisements, countering that terms of its accelerated repayment of government loans terms had been fully disclosed. To the contrary, having forfeited the confidence of the American public when it relied on taxpayer funding for its long-term survival, the company is desperate to improve its image — and sell more cars. Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Could Bristol-Myers' Growth Flatline Post-Plavix?

2010-04-27T01:41:00.004-04:00

In 2009, Bristol-Myers Squibb (BMY-$24.50) derived almost one-third of its total sales, or $6.1 billion, from the blood-clot inhibitor Plavix (clopidogrel), co-marketed with French drug maker Sanofi-Aventis (SNY). Can growth from existing drugs help mitigate revenue and earnings lost to generic copycats when the drug maker's best-selling cardiovascular drug loses market exclusivity come 2012? Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Novartis' Search In a Post-Diovan World Continues

2010-04-23T11:02:00.002-04:00

Findings from ASPIRE (Aliskiren Study in Post-MI Patients to Reduce Remodeling), one of 14 trials evaluating Novartis AG’s (NVS-$51.97) Tekturna’s potential benefits beyond blood pressure reduction, showed that although addition of the hypertensive drug did help limit changes to the heart’s shape and function in patients after heart attack (post-myocardial infarction), the results were not statistically significant.

The collective findings in the post-MI population do not support dual-agent suppression of Tekturna with other drugs inhibiting the renin-angiotensin system at this time, concluded Dr. Solomon, presenter of ASPIRE trial.

Going forward, what does this mean for Novartis’ attempt to boost sales when blockbuster BP drug Diovan loses market exclusivity? Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Talk of Oil Drilling at Chesapeake Energy Nothing But Gas

2010-04-19T12:34:00.003-04:00

Chesapeake Energy’s (CHK-$23.50) near-term outlook calls for a shift in some production to oil and natural gas liquids, such as propane and butane. The number two natural gas producer will initially focus drilling activities on unconventional shale prospects, such as its holdings in the Granite Wash formations of the Texas Panhandle and western Oklahoma.

In the various Granite Wash plays of the Anadarko Basin, Chesapeake is the largest leasehold owner with approximately 190,000 net acres and is also the most active driller and largest producer. Speaking at recent energy conferences, chairman Aubrey McClendon identified particularly prolific gas- and oil-rich areas — with reservoirs potentially loaded with upwards of 90 barrels per million cubic feet — that have become the two highest rate-of-return plays in the company.

What McClendon, crowned “Mr. Gas” in a 2008 Fortune article, forgot to mention, however, is that profitable retrieval of these oily reservoirs will require much higher natural gas prices.

Read More: Chesapeake Energys’ Move to Oil Needs Higher Gas Prices

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Solar Module Acquisition Better for LDK Solar or Chairman?

2010-04-15T17:10:00.005-04:00

By controlling each node of the manufacturing value chain — and locating its new polysilicon plant adjacent to its existing low-cost (wages) wafer facility in Xinyu City, China — LDK Solar (LDK-$8.43) was confident it could reduce overall production costs, improve product quality (such as conversion efficiency rates), and enhance its core competitiveness in an increasingly crowded (and commodity-like) market for solar wafers.

In 2009, aggregate annualized production was about 6,000 metric tons — significantly lower than forecasted nameplate capacity of 16,000 metric tons. In addition to construction delays, costs for the silicon plant ha approached $2 billion — well above the forecasted budget of $1.2 billion.

In the fourth-quarter of 2009, LDK reported wafer average selling prices (ASP) of US$0.83 per watt, down from US$2.24 per watt in 2007. The significant decline in wafer prices forced the company to write down the carrying values of its inventories by almost US$500 million in the last two years.

Despite its inability to capture wafer cost advantages through the ownership of more of its upstream supplier chain, chairman and chief executive officer Xiaofeng Peng insists LDK should move downstream. In February LDJ purchased a crystalline module manufacturing plant owned by Peng for $21.5 million.

Is the decision best for LDK or Peng? Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Cabot Oil Still Has "Gas" in its Future

2010-04-13T01:06:00.002-04:00

Cabot Oil & Gas (COG-$39.63) is showing early success from its Haynesville Shale assets located in East Texas, with its first horizontal well currently producing at 19 million cubic feet (Mmcf) per day, according to chairman and chief executive officer Dan Dinges.

Cabot’s asset portfolio is spread principally between low-risk/long reserve-life (27 years) Appalachian assets (Marcellus Shale) and high-volume/rapid-payout (estimated reserve life of 13 years) prospects in the Gulf Coast (East and Southeast Texas). Although most of its of its 2010 capital budget is geared toward expanding takeaway pipeline capacity and ramping up production at its core Marcellus holdings in Susquehanna county, PA, management has still budgeted about $181 million of capital funds for drill-bit activity on Haynesville Shale prospects in East Texas.

Dinges said at a recent energy conference that the company expects drilling results from three other Haynesville Shale wells during this quarter.

But other stuff is happening that could derail the company’s ambitious drill program this year.

Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Chesapeake Energy Looks Toward 'Oily' Future

2010-04-08T00:08:00.002-04:00

“The economics just compel you to look for oil rather than natural gas right now,” Chesapeake Energy’s (CHK-$24.09) chairman and chief executive officer Aubrey McClendon told attendees at Hart Energy’s annual Developing Unconventional Gas conference in Fort Worth last week.

McClendon admitted on the company’s February earnings call that $5.00 per million BTU pricing on the New York Mercantile Exchange (NYMEX) equates to $3.50 gas at the wellhead, once differentials like gathering and compression costs are included in the cost calculus. “Even $3.50 gas at the wellhead does not create enough cash flow in the industry to maintain today’s drilling price — even for the best-managed shale plays,” he said.

Why is the nation’s second largest natural gas producer suddenly priming the drill-bit for oil? Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Denbury Resources Asset Sale Doesn't Change Outlook

2010-04-05T12:34:00.003-04:00

Denbury Resources Inc. (DNR-$17.95) announced its intent to sell certain of its oil and natural gas properties (acquired in the merger with Encore Acquisition) for $900 million to Quantum Resources Management, a privately held Houston-based company. As expected, the properties to be sold are located primarily located in the Permian Basin in West Texas and southeastern New Mexico.

The leader in carbon dioxide-based, tertiary-recovery of aging oil fields said it would use the proceeds to pay down debt acquired in the $4.5 billion acquisition of Encore.

Although welcome news, the post-merged company would still be left with long-term debt of some $3 billion, or almost 40 percent of total capitalization. In addition, there is limited pipeline infrastructure to support planned CO2 -recovery operations in acquired Rocky Mountain assets. What now? Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Making Commercial Sen$e of Genzymes' apo-B Inhibitor Mipomersen

2010-04-01T05:16:00.003-04:00

Mipomersen is an antisense inhibitor of apo-B protein synthesis, the first drug of its type. Genzyme (GENZ-$51.83) intends to first seek approval in the U.S. and Europe for mipomersen in those patients with homozygous familial hypercholesterolemia (HoFH), a rare genetic disorder affecting one in a million people, in the first half of 2011.

Investigators believe mipomersen could be a valuable addition to the drugs used in the management of HoFH and could prove useful in the management of other high-risk, patients with severe hypercholesterolemia (resistant to existing lipid-lowering drugs)

Recent trial results, however, have raised questions about mipomersen’s safety and tolerability, as 76 percent and 12 percent of patients in the mipomersen-treated group had injection-site reactions and increased liver enzymes of three times or more the upper limit of normal (with MRI findings of increased intra-hepatic fat content too).

Two experts on antisense inhibitors of apo-B protein synthesis, R. Dermot Neely (Royal Victoria Infirmary, England) and John J Kastelein, (Chairman of the Department of Vascular Medicine at the Academic Medical Centre Amsterdam), share their insights on the commercial prospects of mipomersen. Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Denbury Resources Profiting from Greenhouse Gases

2010-04-01T04:52:00.003-04:00

Denbury Resources (DNR-$16.87) has completed its $4.5 billion purchase of Encore Acquisition Corp.

The Plano-based oil company makes its money by injecting carbon dioxide into depleted petroleum fields to recover lost production, and the integration of Encore will more than double the potential of its enhanced oil recovery (EOR) assets.

Anticipated tertiary production from Encore properties in the Rocky Mountains (Montana and Wyoming) fits nicely into Denbury’s overall EOR program, said chief executive officer Phil Ryhoek, and will provide production growth in 2015 and beyond, about the time when the company’s Gulf Coast tertiary fields are expected to hit production peaks.

Can Denbury Resources profit from greenhouse gas emissions? Read More > ,,,,

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Making Commercial Sense of Isis Pharmaceuticals' Cholesterol Drug Mipomersen

2010-03-30T01:07:00.003-04:00

Isis Pharmaceuticals (ISIS-$10.31) sold development and marketing rights of its flagship antisense drug mipomersen to Genzyme in January 2008. Mipomersen, a first-in-class apo-B synthesis inhibitor, works by decreasing the production of apo-B, a protein critical to the synthesis and transport of LDL and VLDL cholesterol — the “bad” lipids involved in the buildup of plaque in the arteries and the development of heart disease — through the bloodstream.

Whether mipomersen rises to $1 billion-plus blockbuster status or remains a niche drug with $250 million peak sales will depend on how the FDA feels about approving the drug for use in a broad pool of high-risk patients (refractory to existing lipid-lowering therapy) with uncontrolled LDL.

Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Bearish on China Sunergy

2010-03-24T15:21:00.002-04:00

With its domestic market becoming even more crowded with silicon, solar cell, and module makers, China Sunergy (CSUN-$3.91) is looking abroad to stabilize margins. In first-quarter 2010, management expects domestic shipments to be only 35 percent of forecasted 68 - 75 MW (down from 56 percent of total 2008 shipments).

Adding scale and market share — at least near-term — will pressure margins. It is difficult to comprehend how recent downstream acquisitions of solar module makers will stabilize margins — as predicted by chairman Lu. Positioning itself as a player in new markets, like Ontario and Italy, will require even more aggressive price breakpoints: Blended ASP during the fourth quarter declined year-on-year 57.5 percent to US$1.26 per watt. Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Anchors Away for Crude Carriers' Common Stock?

2010-03-22T21:01:00.003-04:00

Crude Carriers (CRU-$16.30) is using all of its approximately $254 million in proceeds from its recent IPO to immediately purchase one 2006-built Suezmax vessel, the Miltiadis M II, at a price of $71.25 million. This is to be followed by the acquisition of two new-built, very-large crude carriers (VLCCs) for $96.5 million each, with expected delivery dates in late March and June 2010.

After hitting eight-year lows, spot rates for most VLCC and Suezmax carriers reversed in the fourth quarter. Is now a good time for a new oil tanker venture to set sail?

Read More at BNET Energy > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

No Fun in Sun at Solarfun Power Holdings

2010-03-19T08:24:00.001-04:00

Solarfun Power Holdings’ (SOLF-$6.54) finance officer Gareth Kung stressed on the fourth-quarter earnings call that 50 percent of shipments to German-based customers were, in fact, installed in other European end markets. Contrary to expressed optimism, however, megawatt volumes installed in these other markets may prove too small to offset lost sales in Germany through (at a minimum) 2012.

In particular, proposals to decelerate subsidies or delayed feed-in-tariff initiatives in markets outside Germany signal less – not more – visibility in growth for channel demand of Solarfun’s PV modules: Continue Reading > …

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Chesapeake Energy's "Clean and Green" Campaign Fails to Convince Critics

2010-03-18T21:35:00.002-04:00

If environmentalists have their way, the flame in Chesapeake Energy’s (CHK-$23.79) “green” logo would be snuffed out. Critics howl that the energy company’s drilling method (like all shale exploration companies), known as hydraulic fracturing, used to extract its gas deposits is toxic.

Thanks to dead cows, water-well explosions, and contaminated groundwater from drilling, Chesapeake Energy’s effort to market natural gas as an environmentally friendly option to “filthy coal” hasn’t gained much traction lately. Now comes word of another public relations disaster for the company: its wastewater wells apparently caused a series of small earthquakes at the Dallas/Fort Worth airport.

Read More at BNET Energy > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Burger King Launching New Assault on Breakfast

2010-03-15T05:04:00.006-04:00

Burger King (BKC-$19.60) has yet to win any of the breakfast sandwich battles – whether they be against McDonald’s or Dunkin Donuts. Management is hoping that the national rollout of Seattles “Best Coffee” (lesser-known line of Starbuck’s premium-coffee brands) in its U.S. stores and launches of BK’s Breakfast Muffin sandwich and Breakfast Bowl will attract traffic to the otherwise struggling fast-food chain.

With $1 billion in debt maturing and comparable same-store sales still in free-fall, the company needs to put more than just flame-broiled sizzle and discounted sales of its signature Whopper sandwiches on its balance sheet.

Continue Reading at BNET Food > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Novartis Crazy to Buy Vanda Pharma?

2010-03-11T13:45:00.002-05:00

Shares of Vanda Pharmaceuticals (VNDA-$11.80) rallied 15 percent in the last two days after rumors resurfaced that partner Novartis AG might be interested in a takeover. The drug maker has a total market capitalization of $328 million – less than the value of the companies' drug pact, worth an estimated $465 million. Whether a merger makes financial sense, however, will ultimately depend on the sales performance on Vanda's drug of mutual interest -- the schizophrenia treatment Fanapt.

Is Fanapt more than just another “me-too” second-generation antipsychotic? Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Hey Burger King, Where's Herb?

2010-03-08T03:56:00.006-05:00

Comparable same store sales at Burger King (BKC-$17.90) operations in North America (more than 7,500 stores) declined three percent versus a year ago.

Consumers are eating out less in this economy — and when dining out they are choosing less expensive restaurants. With the price-value proposition shifting to the value side, Burger King needs to figure out how to retain customers — and their loyalty – in an industry dominated by burger pricing wars.

Patrons at a BK restaurant in Concord, NH, keep coming back for more – as much for a singing server as the food. Of course, such an inexpensive loyalty program makes no sense to management: and Chuck Murphree was told to do it management’s way – no more singing.

Maybe management would prefer another "Where's Herb?" disaster (circa 1985)? Read More > ....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

First Solar Forgets an Understanding Is NO Signed Deal

2010-03-05T14:06:00.006-05:00

Chief executive Rob Gillette confidently predicted on the fourth-quarter 2009 earning call that demand for larger-scale utility projects, particularly in North America, India, and China, will provide sustainable, long-term growth for First Solar’s (FSLR-$109.00) products. But lack of financing, planned cuts in subsidies, and regulatory issues could eclipse estimated manufacturing demand by quite a bit.

Investors ought be reminded, too, that a Memorandum of Understanding is not a signed agreement.
Read More > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Are Hot Dogs From Kraft Foods and Sara Lee Choking Risk For Kids?

2010-02-28T23:52:00.008-05:00

A new policy statement from the American Academy of Pediatrics (AAP), published in the February 22 online issue of Pediatrics, takes a closer look at preventing choking among children. Their startling find is on average, a child will die every 5 days in the United States from choking on food. Fear-mongering for political ends, or plain truth in advertising?

The AAP is now calling on food manufacturers of hot dogs and other high-risk foods to affix “choking hazard” labels to packaging, and urging that companies redirect some research and development expenses toward the redesign of foods, such as drafting new shapes, sizes, and textures less to get wedged in a kid’s passage airway.

Some hot dog brands, such as Oscar Mayer (Kraft Foods) or Ball Park Franks from Sara Lee, already have warning labels about choking. Not enough is the apparent sentiment vocalized by the policy paper’s lead author Gary Smith.

It turns out, though, that the AAP took that data from a paper almost thirty years old! Read more at BNET Food > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

First Solar Turns To New World for Solar Growth

2010-02-28T23:20:00.004-05:00

In 2009, First Solar (FSLR-$105.90) generated almost 65 percent of its $2.06 billion in sales from German photovoltaic (PV) projects, from roof-top panels to arrays of solar panels on farms, according to its annual regulatory filing. In 2010, the cadmium-telluride (CdTe) thin-film module manufacturer will still derive about 40 percent to 50 percent of module sales from German customers, despite best efforts to open windows to other sunshine markets. Most of its business from Germany will be front-loaded, CEO Robert Gillette said on the fourth-quarter ending 2009 earnings call, to beat the planned June 1 feed- in subsidy cuts.

Contrary to optimism expressed by First Solar management on its earnings call, installation volume capacities in other European markets, such as France (12 percent of its business) or Italy (6 percent of sales), were too small to absorb lost mega-watt sales from Germany.

“For the big players, there is no real way around Germany, to be honest,” SES Research analyst Karsten von Blumenthal told Reuters.

First Solar expects to ramp up aggregate manufacturing capacity to 34 production lines by 2012, with annual worldwide production capacity of approximately 1.8 gigawatts. Longer-term performance could be hampered by obstacles in other markets outside Europe.

Continue Reading > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Avoiding Cannibals at Johnson & Johnson

2010-02-24T23:35:00.003-05:00

As patients with auto-immune disorders cycle through anti-TNF therapies and the failure pools increase, there is ample room for Johnson & Johnson’s (JNJ-$63.45) Simponi and Stelara to grow prescription share in their respective markets without cannibalizing sales of the healthcare conglomerate’s flagship drug Remicade (infliximab) sales. As the two drugs expand their labeling to address unmet needs in other markets, their orbits will eventually collide with each other and with Remicade.

However, can Simponi (golimumab) and Stelara (ustekinumab) evolve as dominant therapies and steal share over time from Amgen’s Enbrel (etanercept) and Abbott’s Humira (adalimumab) instead? Read more > ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Petrohawk Energy Promises Free Cash Flow By 2012

2010-02-23T03:51:00.007-05:00

Petrohawk Energy (HK-$22.16) is nursing a mighty hangover after awaking from a 2 ½-year buying binge — $5 billion spent on acquiring leasehold interests in unconventional pay zones, specifically the Haynesville Shale, Fayetteville Shale, and Eagle Ford Shale plays. Petrohawk is like the U.S. Treasury in some respects, having funded its expansive appetite with paper — common stock outstanding has almost doubled since 2006 to 300 million shares — and deficit spending: At September 30, long-term stood at approximately $2.4 billion, roughly 73 percent of stockholder equity. And, interest expense to service this debt totaled $174 million through September, up from $88.4 million in all of 2006, according to regulatory filings.

“Today we stand with an excellent liquidity position sufficient to execute our 2010 drilling program,” chairman and chief executive officer Floyd Wilson proclaimed to analysts on the February 1 operations call. Management also anticipates turning free cash flow positive (operating cash flow less capex) come 2012.

Wilson gave a similar speech in May 2006. Can he deliver this time around? Read More >….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Revlimid Keeps Celgene Healthy

2010-02-19T16:06:00.002-05:00

Celgene (CELG-$60.11) chief executive Sol Barer predicts Revlimid will win regulatory approval as front-line treatment for newly diagnosed multiple myeloma (MM) patients in both U.S. and European markets. However, to win broader labeling and expand its European footprint, Celgene’s best-selling product will need to show a six to eight month difference in progression-free survival to be considered significant, said oncologists surveyed by Pharmawire.

Wall Street analysts are falling all over each other to trumpet the growth prospects for the drug with approved maintenance dose settings. But what happens to Celgene if final results of the MM-015 trial fail to reveal significant differences between induction with its flagship drug Revlimid and without it? Continue Reading….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Southwest Airlines "Cop Out" in Kevin Smith Feud

2010-02-17T23:55:00.004-05:00

Before backpedaling in a tweeted apology, Southwest Airlines (LUV-$12.29) insisted in a public retort that airline employees removed movie director Kevin Smith from a flight last Saturday for violating the carrier’s “Customer of Size" policy, which calls for a large passenger to be bumped from a full flight if the customer cannot comfortably lower the armrest and infringes on a portion of another seat.

Will the film auteur settle for the airline’s mea culpa or prolong his manipulated cause célèbre another week, when his new film “Cop Out” is released? Read More at BNET Media….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Petrohawk Energy's Gas Reserve Valuations in Dispute

2010-02-15T00:03:00.003-05:00

Petrohawk Energy’s (HK-$22.78) experienced significant growth in production and reserves in 2009, chairman and chief executive officer Floyd Wilson said. Proved reserves (98% natural gas) grew 122 percent to 2.75trillion cubic feet equivalent (Tcfe), most of which was added through drill-bit activity in its Haynesville Shale. The company exited 2009 producing 600 Mmcfe per day, up from an approximate exit rate of 366 Mmcfe per day in 2008.

The volume of gas resources claimed by operators is not in dispute. Evidence presented at the 2009 meeting of the Gulf Coast Association of Geological Societies (GCAGS) held in September 2009 suggests, however, that formation damage during fracture stimulation treatment, in effect, reduces reservoir performance and resultant valuations.

Continue Reading at BNET Energy….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Will Petro-Canada Acquisition Sink Suncor Energy?

2010-02-09T11:41:00.002-05:00

Suncor Energy (SU-$30.05) is a long way from achieving the significant synergies envisioned from its all-stock C$19.63 billion acquisition of Petro-Canada last August: Net debt increased to 4.8 times cash flow from operations at year-end 2009, from 1.8 times in 2008. Return on employed capital, excluding major projects in progress (such as its Firebag bitumen in-situ mining operations) plummeted to 2.6 percent, from 22.5 percent in the prior year.

Can Suncor control operating costs and get its debt paid down towards the $10 billion range by the end of 2010? Continue Reading ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Murphy Oil Spudding For Ethanol Prospects

2010-02-07T20:29:00.003-05:00

Despite significantly weaker margins realized in 2009, Murphy Oil (MUR-$50.75) intends to add a combined 80 new gas stations to its network of Murphy USA sites, located at Wal-Mart supercenters, and its stand-alone Murphy express outlets. In 2009, the company added 26 new filling stations.

The integrated energy company derives about 69 percent of annual sales ($19 billion in 2009) from its U.S. refining and marketing operations.

Chief executive David Wood said on the recent fourth-quarter earnings call that the company was open to opportunities to expand its presence in the ethanol refining business, as the one plant Murphy Oil acquired last year only covers about a quarter of the volume needed in ethanol-blended gasoline that Murphy sells through its own retail network. Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

McMoran Exploration: What's in Davy Jones' Locker?

2010-02-03T14:32:00.002-05:00

Positive drilling results at its Davy Jones prospect could be a boom for McMoran Exploration (MMR-$16.80). The Gulf Coast energy company had proved oil and gas reserves at year-end 2009 totaling 271.9 Bcfe (billion cubic feet of natural gas equivalents), compared with 344.8 Bcfe in 2008. The reserve depletion primarily reflected delays in bringing shut-ins (as a result of the September 2008 hurricanes in the Gulf) back into production. Estimates of the size of the discovery range from 2 trillion to 6 trillion cubic feet of natural gas, rivaling the largest gas finds ever made in the Gulf.

Nonetheless, it is worth reminding folks that assumptions to date have been based on sketchy data from well logs. In addition to appraising the actual hydrocarbons in place, the company still hasn’t defined the extent of the reservoir field or the recoverability of the reserves in the tapped reservoir — its flow rates.

Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Saving Trump Entertainment Resorts from the Trumps

2010-01-31T12:28:00.002-05:00

Ivanka Trump and her father “The Donald” have allied with bondholders of bankrupt Trump Entertainment Resorts (TRMPQ-$0.08), to compete with a plan crafted from senior lender Beal Bank and its new partner, the legendary billionaire Carl Icahn, in salvaging the operations of the bankrupt gaming company. Her significant assets aside, given the Trump family’s dismal past performance in running casinos in Atlantic City, might the Trump Taj Mahal, Trump Plaza and Trump Marina be in better hands with just about anyone else?

Read More at BNET Media….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.