Best Money

Thursday’s Buybacks: Lamar Advertising for $500 Million

Updated from 2:51 p.m. EST

Gold, coming off a big rally in the previous session, edged lower Thursday as recent volatility kept anxious investors waiting in the wings.

April-dated bullion contracts slipped $1 to $683 an ounce on the Comex division of the New York Mercantile Exchange.

The bullion exchange-traded funds, streetTracks Gold Shares (GLD) and iShares Comex Gold Trust (IAU) , were down 0.2%.

“The higher volatility certainly made some nervous money stay on the sidelines,” says Jon Nadler, an analyst at Montreal bullion dealer Kitco. “The small investors are dazed.”

Prices fell Tuesday, but rebounded Wednesday to settle $23 up at $684. Many market watchers expect significant gyrations to continue.

New economic data showing higher-than-expected unemployment claims failed to undermine the greenback, with one dollar recently buying 121.58 yen, up from 120.88 yen late Wednesday. The euro was recently trading at $1.312 down from $1.314.

The real gold market action was focused on the miners, where a slew of earnings reports were dominating the news.

Industry stalwart Newmont Mining (NEM) reported a fourth-quarter profit of 50 cents a share, beating consensus forecasts of 40 cents, and up from 12 cents the year before. However, the company cautioned that 2007 sales would likely decline and costs would rise.

Even so, the shares rose 1.6%.

Barrick Gold (ABX) reported earnings of 48 cents a share, in line with expectations, but up from 32 cents a year earlier.

The company said it reduced its fixed-price sales position, or hedge book, by 1 million ounces during the quarter, bringing the total reduction of such contracts for the year to more than 9 million ounces. The news will be greeted warmly by the bulls, with Barrick earnings benefiting more from bullion price rallies. Still, shares of Barrick slipped 2%.

Agnico-Eagle Mines (AEM) reported diluted fourth-quarter earnings of 34 cents a share, besting analyst estimates of 32 cents and up from 13 cents a year earlier.

Pan-American Silver (PAAS) reported fully diluted fourth-quarter earnings of 38 cents a share, reversing losses of 44 cents a year earlier. Consensus estimates were for 26 cents. The stock was barely changed.

Turning to base metals, copper prices were lifting again on the Comex, closing up 12 cents at $2.78 a pound.

“We think that the [copper] market is rebalancing in February and will be in deficit from March-June, partly for seasonal reasons,” states London-based specialty firm Bloomsbury Minerals Economics in a new report.

Economic Calendar: February 26-March 2

Worries about this week’s economic data put pressure on stock index futures Tuesday, and Wall Street appeared headed for a weak open.

Futures on the S&P 500 were sinking 7.6 points to 1445 and were 6.3 points below fair value. Nasdaq 100 futures were plunging 16.8 points to 1821 and were nearly 14 points under fair value.

The U.S. market has been sluggish for several days, and for the moment nothing in the news was changing that. On Monday, the Dow Jones Industrial Average fell 15.22 points, or 0.12%, to 12,632.26. Sixteen of the Dow’s 30 components finished with losses.

The tech-heavy Nasdaq Composite lost 10.58 points, or 0.42%, at 2504.52.

Overseas, equities were pummeled in Asia and Europe. A benchmark index in mainland China sank more than 9%, while London’s FTSE 100 was dropping 1.6%. Frankfurt’s Xetra DAX was surrendering 1.4%.

Among the names in the news, homebuilder Hovnanian Enterprises (HOV) guided above consensus estimates, something of a rarity these days for the publicly traded companies in the sector.

Elsewhere, a day after prospective merger partner XM (XMSR) posted its results, Sirius (SIRI) reported a narrower-than-expected quarterly loss and stronger-than-forecast revenue. The company also said fiscal 2007 revenue should approach $1 billion.

Turning to the research calls, UBS upgraded General Electric (GE) to buy from neutral and JP Morgan downgraded NYSE Group (NYX) to underweight from neutral.

Commodities were generally lower in early action. Crude oil was down 16 cents at $61.23 a barrel at the New York Mercantile Exchange, and gold was off $4.40 to $685.40 an ounce.

Treasuries were rising. The 10-year was up 5/32 in price, yielding 4.61%, and the 30-year bond was higher by 11/32 to yield 4.71%.

Five Ways You Could Be Killing Your Business

A Glamorous Garage

The two-car garage: today, that concept sounds quaintly vintage, like iceboxes and sliced bread.

The second car can hardly be considered a luxury anymore.

So as the auto count goes up, the question presents itself: Do you begin looking for more car space or cars that take up less?

Hailing from Arizona’s real estate industry, two entrepreneurs I met at the Men’s Luxury Toy Expo in Glendale, Ariz., are turning profits from two very different answers. Cars Living Large

Car enthusiasts turn to the car Mecca of the Phoenix/Scottsdale area to escape the saltwater menace of coastal states.

Here, houses are often selected based on car needs, which often left realtor Denise Ham hunting down properties with five-car garages. While she specializes in finding homes for cars, Ham’s prowess is challenged by the growing three-, four- or even five-car standard.

She is even thinking of enlarging her own garage to accommodate her collection, which includes a 1995 Corvette. “I am a car person and … when [someone wants] a 12-foot ceiling in the garage I know why,” says Ham.

If you don’t happen to find a house with an accommodating show room, many Arizona properties won’t allow you to add on, in which case your other option is to rent space in a commercial building — often without the climate control option.

When a developer presented the idea of luxury car condos to Ham, she paid attention and soon found herself selling the Goodwood Motoring Club’s condo concept to potential buyers in Arizona.

Ham has picked up local prospects from the annual Barret-Jackson car auction and even people from the Midwest and Northwest who have second homes in the area. “I just got an email yesterday from a gentleman in Daytona, Fla.,” she says.

Goodwood takes the condo concept quite literally. While owners can’t sleep alongside their favorite toys, they are provided with a showroom where they can hang out with their cars and friends while catching the game and chilling wine in the fridge.

Each condo provides a safe environment with climate control, security cameras and lights, all of which owners can adjust from their home computers.

Instead of the standard commercial box, these condos are designed with an old-world charm and all the bells and whistles of modernity.

Each of the 15 units comes with a full bathroom including a granite vanity, a full entertainment center, its own air compressor, indirect lighting for artwork, covered patio and open-truss, 12-foot ceilings. Seven of the units will have an additional entertainment center and bathroom.

The condos are perched around a cobblestone courtyard with central fountain; a washing bay resides just outside.

The smallest (2,431 square feet) condos start at $600,000, and the most elaborate will go for over $1.3 million. Ham plans to release full pricing by the end of March. The Smart Cart

“I’m in the right place at the right time with the right car and the right solution,” says entrepreneur George Bridges, standing in front of his display at the Men’s Luxury Toy Expo, which resembled one of the luxury car lots that dotted the nearby Phoenix roadways.

The vehicles looked like limos, Hummers and Escalades minus their two trademarks: size, and a steaming exhaust pipe.

After a raging real estate success with his company Arizona Dreams, Bridges tapped into something that involved both real estate and auto trends.

He had been using his own electric golf cart as a second car, but when Bush’s 10/20 plan rolled around, Bridges saw what he had on his hands. He and his wife Sydney promptly started Mobile West.

There are 200 golf courses in surrounding Maricopa County, and too many golf carts for Bridges’ tastes.

“Why sell golf carts when there’s five million of them?” he queries. “I’m selling second cars.”

Bridges’ eyes tear on a bad pollution day in Phoenix. While he doesn’t advocate boycotting the oil or sports car industry, he’s all about cutting down consumption.

Taking his cue from coughing golfers, Bridges began selling environmentally friendly alternatives to that second or third “gas hog,” as Bridges dubbed it. He even wants to get on a national committee with Senator McCain to promote his cars.

You’d think it’d be hard convincing business barons to cart around in a vehicle the size of a golf cart, but when the smog hits home, they listen. Bridges says his pro-electric clients usually lead alternative lifestyles in which electric is in and pollution-free golf greens are sexy.

Leading this trend is Virgin chairman Richard Branson, who announced — perhaps a bit rashly — that he will pay $25 million to the scientist who discovers how to extract greenhouse gases from the atmosphere.

What’s more, a federal mandate will make gas-powered golf carts illegal on courses in 2008, says Bridges. He is miles ahead with his alternative, which simultaneously dashes the idea of an uptight golfer.

“I like being different,” says Arizona resident Beverly Lutes as she eyed an electric 6-seater limo. “Plus, there’s lots of room for groceries.” She plays golf five days a week and has four grocery stores within golf-cart reach.

People will always choose convenience, and for customers like Lutes, that’s the appeal.

“People [want to] get rid of the gas and insurance bill,” says Bridges. Insurance for Mobile West vehicles is only $50 a year.

For someone with grandchildren or living in a gated community, Bridges’ car is the ideal. Plus, parking is a dream, especially when you can pop your car into a motorcycle spot instead of trekking a mile through a busy lot.

Despite their size, his vehicles get respect on the road, Bridges says — as long as the speed markers say 45 mph and under. “Everyone gets out of my way when I’m driving,” he says.

Gas Guzzlers, Be Gone

While he’s only been in business for nine months, Bridges is selling ad space on cars, creating billboards at convention centers on the East Coast and shipping to England and Canada. Two of his Escalades will be zipping around the Superbowl in 2008.

“The market is endless, from selling commercially to a driving billboard to a car for errands around town,” Bridges points out.

The cars start at $9,000 and can go upward of $20,000.

“It’s cutting edge — people haven’t gotten that yet,” Bridges explains, but he’s certain they’ll all catch on very soon.

So whether you need more space for your new hotrod or are sick of spending on gas, look to some of these innovate, alternative solutions.

Enjoy the Good Life? http://apps.thestreet.com/cms/tsc/feedback.do?authorId=1100652 with what you’d like to see in future articles.

Daily Report: Yen Strengthens Further after IMF Comments

Action Insight | Written by ActionForex.com | Feb 27 07 07:57 GMT |
Forex Daily Technical Report Yen Strengthens Further after IMF Comments

Japanese yen strengthens across the board again into European trading. Comments from IMF Managing Director Rodrigo de Rato highlighted his concerns over the increasing usage of yen carry trade that could worsen global imbalances by entrenched exchange rate misalignments and urged the government to address.. According to de Rato, such disorderly global imbalances are “not sustainable” and could lead to disruptions in the market and “economic downturn” if they’re not properly addressed.

Technically speaking, both USD/JPY and EUR/JPY were pushed through near term support of 120.32 and 38.2% retracement of 156.21 to 159.63 respectively. This should be indication that recent rally from 118.96 and 156.21 has already completed. With USD/JPY still kept below 122.17 high, it could likely be still bounded in wide range consolidation and risk a retest of 118.96 low. Meanwhile, EUR/JPY’s failure to sustain above 158.88 resistance is reviving the diagonal triangle case that leads to medium term reversal and 156.21 support will now be closely watched.

On the data front, it will be a busy day. Germany import price index came in lower than expected by dropping -0.7% mom, 0.1% yoy in Jan, below expectation of -0.3% and 1.1%. M3 growth in Eurozone will be closely watched today. After surprising the market on the upside by accelerating to 9.7% yoy in Dec, M3 growth is expected to moderate slightly to 9.5%. But still, this will show that money growth in Eurozone remains robust and should still underpin opinion that ECB will enact further monetary tightening in 2007.

From US, Jan Durable goods order is expected to drop - 2.5%, with ex-transport orders dropping -0.3%. Consumer confidence is expected to drop slightly from 110.3 to 109. Meanwhile, existing home sales is expected to remain stable and rise slightly by 0.3% to 6.24m annualized rate. EUR/USD

Daily Pivots: (S1) 1.3159; (P) 1.3179; (R1) 1.3206; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/USD edges higher to 1.3202 but lacks follow through buying yet as Euro is pressured in EUR/JPY cross selling. Nevertheless, intraday bias remains on the upside as long as EUR/USD stays above 1.3150 minor support and further rise is still in favor towards 1.3296 resistance. Below 1.3150 will suggest rally from 1.3078 has made a top and should bring further retreat towards 4 hours 55 EMA (now at 1.3127). But in such case, downside should still be contained well above 1.3106 support and bring rally resumption.

In the bigger picture, corrective fall from 1.3364 should have completed with three waves down to 1.2865. With EUR/USD staying within medium term rising channel (lower channel line at 1.2822 now), medium term up trend from 1.1639 is still in force. And the current rise from 1.2865 is treated as resumption of rally from 1.2865. Break of 1.3296 resistance will add more credence to this view and should push EUR/USD to a new high above 1.3364.

However, with bearish divergence condition in weekly MACD and RSI, a medium term top could be around the corner. Upside of this medium term rally could be limited by resistance zone of 1.3668 (04 high) and 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822.

On the downside, sustained break of 1.3078 support will seriously dampen this view and suggest that the rebound from 1.2865 has possibly completed after three waves up to 1.3202, meeting 161.8% projection of 1.2865 to 1.3042 from 1.2911 at 1.3197. With such corrective formation, deeper decline should follow. In such case focus will be shifted back to 1.2865 low and then the medium term rising channel.

GBP/USD

Daily Pivots: (S1) 1.9607; (P) 1.9633; (R1) 1.9660; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

Cable’s consolidation from 1.9660 continues today. As discussed before, as long as downside of the current retreat is contained by 1.9535 support, another rise is still in favor. Firm break of 1.9660 will indicate rise from 1.9429 has resumed towards 1.9731 resistance. Sustained break of 1.9731 will indicate the corrective fall from 1.9913 has already completed and should bring retest of this high.

However, previous break of rising trend line support (1.8517 to 1.8834, now at 1.9715) indicates the rally from 1.8517 should have already completed at 1.9913. Hence, further correction cannot be ruled out as long as cable stays below 1.9731 resistance. Below 1.9429 will indicate corrective fall from 1.9913 has resumed for 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237).

In the bigger picture, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed before reaching mentioned 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067). Focus is still on 1.9237/61 cluster support. Decisive break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.

Strong rebound from 1.9237/61 cluster support or break of 1.9731 resistance will indicate that the corrective fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance before having a medium term reversal.

USD/CHF

Daily Pivots: (S1) 1.2279; (P) 1.2305; (R1) 1.2325; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/.

USD/CHF edges lower to 1.2279 today. At this point, further decline is still expected to follow as long as USD/CHF stays below 1.2331 resistance. Next downside target will be 1.2268 support. Break will encourage further fall towards 61.8% retracement of 1.1878 to 1.2571 at 1.2143.

Above 1.2331 will indicate the fall from 1.2436 has made a low already and further consolidation will follow with risk of recovery towards 4 hours 55 EMA (now at 1.2366). But upside should be limited by 1.2408 resistance and bring further decline.

In the bigger picture, previous break of 1.2374 support should have completed a head and shoulder top formation (with ls: 1.2547, h: 1.2571, rs: 1.2550) and should be an important indication of reversal. Firm break of 1.2268 resistance turned support will confirm that the whole rally from 1.1878 has completed after failing to break through mentioned medium term falling trend line (1.3283 to 1.2760). Also, weekly MACD will still be kept negative with daily MACD staying below signal line. This will favor the case that whole down trend from 1.3283 is still in force. In such case, deeper decline should be seen towards 61.8% retracement of 1.1878 to 1.2571 at 1.2143 and even further to retest 1.1878 low.

On the upside, above 1.2436 will turn focus back to the medium term falling trend line again (now at 1.2484). Sustained break of this medium term falling trend line will indicate that whole medium term down trend from 1.3283 has already completed at 1.1878. Further rally should then be seen towards 1.2768 cluster resistance(61.8% retracement of 1.3283 to 1.1878 at 1.2746) first. Break of 1.2768 cluster resistance will add much weight to the case that whole corrective rise from 1.1288 (04 low) has resumed and further rally should be seen towards 1.3283 (06 high) or above.

USD/JPY

Daily Pivots: (S1) 120.28; (P) 120.67; (R1) 121.01; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/JPY’s fall from 121.61 resumes in early European session by breaking through 120.32 cluster support (50% retracement of 118.96 to 121.61 at 120.29), reaching below 120 psychological level. At this point, intraday bias remains on the downside and further decline is still in favor towards 118.96 low. Above 120.32 support turned resistance will turn intraday outlook consolidative first. But a break above 120.77 is needed to indicate fall from 121.61 has completed. Otherwise, another fall is still expected after consolidation.

USD/JPY’s rally from 118.96 was limited well below 122.17 high and break of mentioned 120.29/32 indicates that USD/JPY could still be bounded in consolidative trading that started at 122.17. Hence a retest of 38.2% retracement of 114.41 to 122.17 at 119.21 will likely follow. Break will put focus back to medium term rising channel (now at 116.70).

In the bigger picture, with USD/JPY still kept inside the medium term rising channel (108.99, 114.41, 117.87), further rally is still in favor after finishing the current consolidation from 122.17. However, firm break above 122.17 high is needed to confirm such rally has resumed first. Otherwise, consolidation could still extend further. Meanwhile, sustained break of the medium term rising channel will indicate whole up trend from 108.99 has already completed and swing favors back to the case that such rally is merely part of a large scale consolidation that started at 121.38 and bring much deeper fall in medium term.

Forex News Diges

http://www.bloomberg.com/apps/news?pid=20601083&sid=aiF0uHbFFRgU&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=akvh7rbIovoQ&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=anb46WpDVs_4&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=a4U9vhHbI9Gc&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aU4lmpmCHZVQ&refer=currency

http://c.moreover.com/click/here.pl?r824775500
Tue, 27 Feb 2007 01:40:00 GMT from Reuters

http://c.moreover.com/click/here.pl?r824740937
Tue, 27 Feb 2007 01:03:00 GMT from Turkish Press

http://c.moreover.com/click/here.pl?r824735604
Tue, 27 Feb 2007 00:57:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r824695188
Tue, 27 Feb 2007 00:19:00 GMT from Reuters

http://c.moreover.com/click/here.pl?r824658220
Mon, 26 Feb 2007 23:45:00 GMT from Bloomberg

http://www.actionforex.com/latest_news/latest_news/forex_news_20060323537/ Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
07:00 EUR Germany Import price M/M Jan -0.70% -0.30% -0.30%
07:00 EUR Germany Import price Y/Y Jan 0.10% 1.10% 2.20%
09:00 EUR Euro Zone M3 sa (yoy) Jan 9.50% 9.70%
09:00 EUR Euro Zone M3 sa (3m avg) Jan 9.50% 9.20%
13:30 USD U.S. Durable goods Jan -2.50% 2.90%
13:30 USD ex. transportation Jan -0.30% 2.70%
13:30 USD ex. defense Jan 0.30% 4.20%
15:00 USD U.S. Consumer confidence Feb 109 110.3
15:00 USD U.S. Existing home sales Jan 6.24 M 6.22 M
15:00 USD U.S. Existing home sales mom Jan 0.30% -0.80%
23:00 EUR ECB Trichet Speaks in Brussels

http://www.actionforex.com/general_information/forex_newsletters/forex_newsletter_200507301487/

Stocks Can’t Find Footing

As TXU (TXU) heads to the world of private companies, the utility space will likely be re-energized by talk of more deals, either in private-equity buyouts or public-company mergers.

Such chatter will inevitably occur today, and given the industry’s stable nature, the “what-if” exercise is worth considering. However, the complexities of the electric power business make big deals challenging, if not downright difficult.

Regulation

Utilities have a great profile for private-equity firms: stable cash flow, predictable demand and a captive customer base, to name just three. But they also entail a significant amount of regulatory risk.

Although deregulation of the power business has helped lessen some onerous regulation, most electric-power companies’ core businesses remain highly regulated, primarily by state public utilities commissions and, at least to some extent, by the Federal Energy Regulatory Commission.

If you wonder what that means, just ask Constellation Energy (CEG) and FPL Group (FPL) . In October, the two companies walked away from a merger that had been in the works for nearly two years because of regulatory hassles. In addition, Exelon (EXC) and Public Service Enterprise Group (PEG) canceled their proposed merger for similar reasons. Of course, some deals have been completed — such as Duke Energy (DUK) and Cinergy — but plenty of uncertainty exists when it comes to public utility mergers.

However, private equity’s entrance into the mix may present new opportunities. It is too early to determine what type of hurdles the TXU deal will face from regulators, but objections are already being assuaged. The new TXU said this morning that it will lower consumer power rates and significantly reduce its plan to build new coal-fired generation plants.

In addition, the private version of TXU is courting heavy hitters for its board, including former Secretary of State James Baker, former EPA Commissioner William Reilly and former Commerce Secretary Donald Evans. Furthermore, the press release announcing the deal talks up the new company’s commitment to the environment and sustainable energy.

The deal will still require various regulatory approvals, and there’s sure to be plenty of opposition and positioning from TXU customers looking for concessions.

TXU is a unique utility in that it has strong portfolios of both regulated and unregulated assets. While the regulated utility provides a solid, stable base of business, the unregulated generation business offers an opportunity for growth, a fact that hasn’t likely gone unnoticed by the private-equity group, led by Kohlberg Kravis Roberts and Texas Pacific Group.

Public to Private

For good reason, TXU will be the talk of the town today. Yet, for investors, the more relevant question is what could come next.

Recently, Mirant (MIR) sold assets to LS Power for nearly $1.4 billion, and in April 2006, NorthWestern Energy (NWEC) agreed to sell to Babcock and Brown Infrastructure for $2.2 billion. Although those deals aren’t nearly as large as the TXU buyout, they do suggest a keen interest in power assets among private-equity investors.

Other private companies such as Tenaska are also on the prowl for new development opportunities as well as established power generation assets. And, while not private, Warren Buffett’s Berkshire Hathaway (BRK.A) , through its MidAmerican Energy Holdings, has said it is willing to spend billions in the power market if the right opportunities are found.

Independent power producers like Mirant and AES (AES) have to be discussing the pros and cons of going private with the backing of firms like KKR, Blackstone, Carlyle and others. Although there’s no indication that any of these firms are eyeing specific assets, private-equity firms tend to focus on similar sectors.

Consolidation

In addition to private equity’s influence on the sector, KKR’s move will probably raise the possibility of additional consolidation among the smaller, regional utilities. Although regulatory hurdles remain, the continued growth of large utilities may spark a stronger urge for smaller utilities to get bigger.

In previous columns, I have discussed the potential for regional consolidation. In the Midwest, smaller utilities like Westar Energy (WR) , Great Plains Energy (GXP) , OGE Energy (OGE) , Empire District (EDE) and Cleco (CNL) are always considering options and opportunities.

In addition, Atlanta’s Southern (SO) is looking for growth opportunities. With names like Scana (SCG) and Teco (TE) right next door, opportunities exist if the price and regulatory climate look right.

All that said, remember that talk is cheap and power deals are often discussed but much less often executed. While the KKR-TXU deal is a blockbuster, utility mergers rarely happen in pairs.

Still, this morning’s deal is likely to give rise to plenty of powerful opportunities.