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Leaked memo shows Hewlett-Packard CEO jitters
Stock Market News |
2011/05/16 08:51
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A leaked memo from Hewlett-Packard Co. CEO Leo Apotheker warning of "another tough quarter" underscores the urgent concerns about the technology heavyweight's growth strategy and the challenges facing its new leader.
Reports of the May 4 missive from Apotheker to his top executives surfaced late Monday, sending HP shares tumbling. HP abruptly moved up its earnings report to Tuesday morning. It had originally been scheduled to Wednesday afternoon.
The jitters reflect investors' anxiety about what is essentially a classic big-company problem -- with a twist.
HP is struggling to find ways to meaningfully boost sales without chasing bottom-feeder deals that eat away at profits. It's a code that many analysts believe HP hasn't cracked.
This as the 72-year-old company is recovering from the trauma of the management scandal that brought about the sacking of Apotheker's predecessor, Mark Hurd, in August, and led to the replacement of a third of HP's board. The boardroom purging was unusually severe for a company HP's size, and the turmoil reinforced a perception among many technology watchers of dysfunction in the top ranks of a Silicon Valley institution.
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As stock market slows down, defensive stocks shine
Stock Market News |
2011/05/16 08:50
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After sailing through its best first quarter since 1998, the stock market is starting to lose some momentum. The Standard and Poor's 500 stock index, a broad market benchmark, is up just 1 percent this quarter after jumping 5.4 percent in the first three months of the year, in large part because of conflicting data about the health of the economy.
One group -- defensive stocks -- is doing just fine. Utilities, health care and consumer staples are all considered a good defense against a slowdown because they tend to have stable profits no matter what happens in the broad economy. The items they sell aren't ones people stop buying when their budgets are tight. And for the last six weeks, investors have been putting money into stocks of companies like Aetna or Kraft Foods that cater to everyday needs, like health insurance or coffee.
Each of the defensive industry groups has gained more than 5 percent this quarter. Health care -- the best of the three -- is now up 14.2 percent for the year, after lagging sectors like energy and industrials during the first quarter. What's more, the number of shares exchanging hands in defensive industries is also increasing. Higher volume often signifies that a stock on the rise will continue to rise -- or that a declining stock will keep falling -- because it reflects increased investor interest in a stock. The daily trading volume of the SPDR Consumer Staples Select ETF, for example, is double the rate it was in January.
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Minn. court: Defendant may withdraw guilty plea
Court Watch |
2011/05/14 08:53
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The Minnesota Court of Appeals says defendants may withdraw a guilty plea if they are not told a conviction could result in deportation.
The court on Monday sided with Rene Reyes Campos. Campos said if he knew he risked being deported for a conviction for simple robbery for the benefit of a gang, he never would have pleaded guilty.
Campos was 17 when he was charged in Hennepin County in 2009, and had been a lawful U.S. resident for about seven years. He agreed to plead guilty as an adult and get a stayed sentence. He was not told the plea could affect his immigration status.
Last June, Campos moved to withdraw his plea.
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Court says FOIA request cannot be used in lawsuit
Headline Legal News |
2011/05/14 08:52
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The Supreme Court says a Freedom of Information Act request cannot be used to trigger a False Claims Act lawsuit.
The court on Monday voted 5-3 to agree with arguments by Schindler Elevator Corp., which sought to get a lawsuit against it dismissed.
Daniel Kirk, a former employee, sued on behalf of the government, claiming Schindler had not complied with reporting requirements involving the employment of Vietnam veterans.
But a judge threw out his lawsuit, saying Kirk's information came from a FOIA request. The False Claims Act says that lawsuits cannot be filed using publicly disclosed information. The judge said FOIA reports were public information.
The 2nd U.S. Circuit Court of Appeals in New York City overturned that decision but the high court said it was correct.
Justice Clarence Thomas wrote the court's opinion, joined by Chief Justice John Roberts and Justice Antonin Scalia, Anthony Kennedy and Samuel Alito.
Justice Ruth Bader Ginsburg dissented and was joined by Justices Stephen Breyer and Sonia Sotomayor. |
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Cisco earnings down 18 percent in 3Q
Stock Market News |
2011/05/13 09:29
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Cisco, the world's largest maker of computer networking gear, says net income declined nearly 18 percent in the latest quarter, as costs kept pace with a sales increase.
The company earned $1.8 billion, or 33 cents per share, in the fiscal third quarter, which ended in April. That compared with earnings of $2.2 billion, or 37 cents per share, a year ago.
Excluding the cost of stock-based compensation, amortization and asset impairments, earnings were 42 cents per share, unchanged from last year. Analysts polled by FactSet expected earnings of 37 cents per share on that basis.
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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