BloggingStocks

Poor Paris! Barron Hilton leaves 97% of fortune to charity

Zac Bissonnette — 2007-12-27T08:40:00+00:00

Filed under: Good news, Harrah's Entertainment (HET), Hilton Hotels (HLT)

Paris Hilton, who rose to fame as an heiress, is less than 3% the heiress she could have been. Her grandfather, Hilton Hotels patriarch Barron Hilton is leaving 97% of his $2.3 billion personal fortune to charity, leaving approximately $69 (what an appropriate number!) million available for everyone else, including Paris.

According to the Los Angeles Times, "The contribution to the Conrad N. Hilton Foundation, to come from the sale of Hilton Hotels Corp. and the pending sale of Harrah's Entertainment Inc. after the money is placed in a trust, is the largest in the foundation's history and will bring its value to about $4.5 billion."

But don't feel too bad for Paris. Even if she won't really be much of an heiress, she has already built her own empire based on her grandfather's wealth -- well, that and going to jail and such.

But still, it's refreshing to see Barron Hilton giving his money to people who deserve it. It's hard to imagine anyone less deserving than Paris Hilton, and maybe this will encourage her to stop acting like such a spoiled brat.

Read | Permalink | Email this | Linking Blogs | Comments

NYSE Euronext (NYX) soars on addition to S&P 500 and S&P 100

Brent Archer — 2007-10-19T11:09:00+00:00

Filed under: Major movement, Good news, Indices, NYSE Euronext (NYX), Hilton Hotels (HLT), Options, Technical Analysis, Limited Brands (LTD), S and P 500

NYSE Euronext, Inc. (NYSE: NYX) is surging today after Standard & Poor's announced that NYX will replace Hilton Hotels Corp (NYSE: HLT) in the S&P 500 after the market closes Oct. 24. S&P also announced that NYX will replace Limited Brands (NYSE: LTD) in the S&P 100. Joining these indices means that any mutual funds that track the index will need to buy shares, which should cause much higher demand over the next few months. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NYX.

After hitting a one-year high of $112.00 in November, the stock sagged to a 52-week low of $64.26 in August. NYX opened this morning at $86.20. So far today the stock has hit a low of $84.93 and a high of $86.39. As of 10:40, NYX is trading at $85.07, up $2.43 (2.9%). The chart for NYX looks bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $65 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just 2 months as long as NYX is above $65 at December expiration. NYSE would have to fall by more than 23% before we would start to lose money. Learn more about this type of trade here.

NYX hasn't been below $65 by more than a few cents in the past year and has shown support around $80 recently. This trade could be risky if the company's earnings (due out on 11/2) disappoint, but even if that happens, this position could be protected by the increase in demand for shares as well as strong support around $70, where the stock bounced in September.

Brent Archer is an options analyst and writer at Investors Observer.

Visit AOL Money & Finance for more earnings coverage

Permalink | Email this | Linking Blogs | Comments

Negotiate your way to financial success and get rich!

Gary E. Sattler — 2007-10-03T16:58:00+00:00

Filed under: Good news, Consumer experience, Competitive strategy, eBay (EBAY), Wal-Mart (WMT), Money and Finance Today, Best Buy (BBY), Hilton Hotels (HLT), Personal finance

A blog post I recently read, written by Amy B. Scher , reminded me about one of the best practices that a person can use to protect and gain the greatest value from their own money. Negotiating the bottom line on your purchases is not old school and it's certainly not "dirty pool". Seeking to negotiate downward adjustments to your purchase prices shows that you have respect for the work that you have done to earn your income and it also shows that you understand capitalism in motion. The following list is only a partial exposure of the ways you can negotiate lower costs for yourself. With some considered imagination you can easily put the negotiation concept to work for yourself in a multitude of buying situations and as you do, the practice will become quite natural and very rewarding.
Save money on your rent:
You can often save money on rent by trading your skills for a portion of your rent payment. If you have the tools and equipment, offer to take care of the lawn at your rental for a monthly rent reduction. You can also do the same thing with snow removal. Offer to paint the interior of the property or look for other repairs that need attention and form agreements to be compensated for doing those jobs. Additionally, if your landlord owns multiple properties, you can negotiate to take on some management duties by collecting rents, making repairs or becoming "the go-to person" when there are problems or complaints. Just be sure to get all your agreements in writing, signed by your landlord and witnessed by a responsible third party. Also be sure to designate who buys what and keep all appropriate receipts for materials purchased to complete tasks.

Farmer's markets, flea markets, and road side stands:
Buying from independent sellers can be a great way to save significant dollars on things. Independent sellers are not bound by company rules, regulations and pricing requirements. Most independent sellers are fully prepared and willing to "haggle price" with you. Let's say you are going to make a large batch of salsa so you need lots of tomatoes. The road side produce seller who has tomatoes at 3 for a dollar will probably sell you the entire bin of forty tomatoes for $8 because then he doesn't have to take the daily left-overs back home. Generally speaking, I have found that if you give independent sellers an opportunity to sell out on an item, they'll give discounts of 30% or more just to close the deal. Selling out at discount beats taking home a few stragglers at full price... just ask Wal-Mart Stores, Inc. (NASDAQ: WMT), they'll tell you I'm right.

Scratched, dented and irregular:
Many retailers, even some of the largest, will give noticeable discounts on merchandise which is less than perfect. You can save hundreds of dollars by purchasing appliances from "retail seconds" outlets and you'll often find items in store that have minor blemishes that were missed by the stock people when loading the shelves. This strategy takes patience but it nearly always pays off. I recommend that you find someone to ask about the item before you take it to the register. Simply show the defective or damaged item to a sales associate and ask if the manager can talk to you about a discount on the merchandise. It may take a while but a good manager will respond to your fair offer. Three warnings I'll give you on this scenario are: 1) Never damage merchandise yourself to attempt to gain a discount on it. The legal repercussions can be worse than if you just stole the item. 2) Be aware that many of the appliance and electronics deals you find on eBay Inc. (NASDAQ: EBAY) are these retail seconds, factory refurbished, open box, and restock items. 3) Most often, these sales fall under the "all sales final" heading so you'll have no "right of return."

Hotel / motel compensatory discounts:
There are a couple situations mentioned in my source article for getting discounts from hotels. One situation involves complaining about noise disturbances when they happen and a reader comment suggests that you don't mention discounts that you bring with you, such as AAA or AARP, until after you have been quoted a room rate. A married couple can also ask for a single occupancy room. In my estimation your spouse can be considered your guest in this case and after all, you'll most likely be sharing the one bed so why be charged for a second one? If Hilton Hotels Corporation (NYSE: HLT) management gives you a problem about it in the morning, just ask them if the room you slept in was a single or double occupancy unit and if they informed you of a prohibition against guests in your room... end of argument.

Getting pets:
There are many no cost and low cost ways to adopt a new pet. Your local animal shelters are great places to get started although they generally don't negotiate their fees. Most animal shelters will fully vaccinate dogs and cats before releasing them to a new home and the fee they charge you for this service is generally about one third what a local veterinarian will charge. Most animal shelters are in touch with reduced cost, spay / neuter programs so you can realize significant savings there also. Ask if the shelter will include any vouchers for veterinarian services along with the animal. Consider looking at those public note boards in the grocery stores. People are often posting notice on those boards that they are giving away or selling animals and if they have a stated price you can often succeed with a counter offer. You can also scan your local bargain fliers or classified shoppers for the words "free to good home". Many a pet has found new lodging through classified ads and many people selling animals as pets will entertain counter offers.

Make retailers serve you:
Often times you can get extra value from retailers just by asking. For large items such as appliances and mattresses you can specify that you want free delivery included and make that a condition of the sale. Don't let them tell you that they won't deliver items for free. Nicely respond that if they want to make a sale, they'll deliver. You can also make removal of your old item a condition of the sale. This is an especially nice option for getting rid of old mattresses and refrigerators. When purchasing electronics such as theater systems or computer suites from places such as Best Buy Co., Inc. (NYSE: BBY) you should also consider having the retailer set up the equipment for you. Keep this in the back of your mind when considering the price you're going to pay for your purchase. Many of the big box electronics retailers are beginning to sell installation services because equipment set-up can be so very tricky. Make those set-up services a condition of the sale and you'll be getting some cheap peace of mind.

These are just some of the ways and places where you can seek to negotiate a better bottom line for yourself. In times of economic challenge it always pays dividends to take your time and hunt down your bargains. In those cases where you cannot get a seller to work with you in accomplishing price adjustments, just walk away with a smile and move on to the next guy. Take it from me, in the world of business, when your contacts won't work with you there's something particularly satisfying about patting you wallet and nicely saying "no deal."

Permalink | Email this | Linking Blogs | Comments

Money Face-Off: Ivanka Trump vs. Paris Hilton

Gary E. Sattler — 2007-09-15T14:10:00+00:00

Filed under: Columns, Trump Entertainment Resorts (TRMP), Hilton Hotels (HLT), Entrepreneurs

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

How does one go about drawing a comparison between Paris Hilton and Ivanka Trump? In my estimation, although there a some mildly reasonable parallels between the two ladies, they are two significantly different people. It's difficult in this format to strip the comparison down to bare facts and then to build a picture of each woman's character and experience from there. So, what I shall try to do is give you just the basics to help you and then I'll leave you to determine which of these women you'd prefer to spend some time with. I'd be pleased if you would comment about which woman you would choose as a business associate, an employee, a national leader, or a life partner.

Paris Hilton was born as a New York City girl but she has a decidedly west coast feel about her. She seems much more adapted to a Hollywood lifestyle than to Broadway or Fifth Avenue. Until recently, Paris shared the position of multimillion dollar heir to the Barron Hilton fortune with her sister Nicky, and she makes no apologies for her lofty position in society. In fact, more than once Paris has been taken to task for acting out in a manner that seemed to reinforce her apparent notion of self-appointed royalty. While operating under the auspices of spoiled brat seems to have been her chosen field of endeavor, until recently, Paris Hilton has largely escaped the usual repercussions that tend to follow in the wake of such rude manners.

Paris chose to turn away from further education during her high school years and instead embarked upon the path of making a name for herself. It seemed not so much a matter of disliking education as it was a matter of a desire to step out of the shadow. Paris stepped into the world of high fashion modeling, for which her long lean body was quite suited. She has modeled for such names as Tommy Hilfiger and Christian Dior, and has been well accepted in the field. As an actress, Hilton has literally exploded on the scene, generally pleasing critics with her performances and proving to be a sincere professional who is relatively easy to work with. Paris has shown herself to be flexible and adaptive yet on occasion, her wicked diva antics still seem to garner for her some powerful raised eyebrows.

When considering the successes of Paris Hilton, whether truly earned or not, it all pales in significance when compared to the overall reaction by the public to her troubles with the law. As heiress, actress, singer, model, and licensing namesake for several product lines, Paris seems to have the world by the tail, but in reality, she's basically subject to the same terms and conditions of life as the rest of us. It has been reported by sources that in July of this year Conrad Hilton disinherited Paris for her wildly raucous behavior and subsequent legal sanctions. We must consider however that given the fact that Paris earned approximately $16 million for herself between 2003 and 2006, grandpa Barron Hilton's moldy old hotel fortune probably holds very little sway over her actions any longer.

Ivanka Trump raises the bar when it comes to measuring the accomplishments of millionaire offspring. Ivanka recounts the experience of being required to supply her own income during high school for the purchase of anything beyond her tuition and basic needs. She sought employment part time as a model and proved to be markedly successful at it, while at the same time continuing her education. While Ivanka's mother required her daughter to help pay her own way, Ivanka's world-famous father assisted his daughter by providing a few open doors. Not one to provide handouts though, it has been said of Donald that he wouldn't have lifted a finger for the girl if she hadn't first shown the initiative to do something for herself.

Ms. Trump has blazed a trail for herself in the world of real estate, using establishment of the family name more as a goal than a means. She graduated with honors from the Wharton School of Finance with a bachelor's degree in real estate. Since that time she has assisted in all aspects of Trump Organization operations and is largely responsible for giving the Trump name a larger international stance. Does Ivanka have a problem with having her father as her boss? Actually, the proposition seems to work very well for both of them.

Ivanka won't allow herself to be swayed from her long-term goal of being a world-class real estate developer. She has been offered multiple opportunities in the entertainment field, but she feels no real pull in that direction. At present she fills the position of vice president of development and acquisitions for the Trump Organization, and she carries that title with every ounce of talent and ability that it requires. At any one time she may be involved in as many as 30 upscale building and real estate development projects, and she's expected to be fully up to date on every aspect of every one of them. Additionally, her iron-fisted father makes perfectly clear to all his offspring that opportunities to be had in the Trump name can be quickly withdrawn at any time.

Each of the above described ladies imparts a very distinct feel: glitz, and glamor on the one hand and world-class business dealings on the other. Your decision about which woman might better fit into your lifetime scenario is dependent on your attitudes about what life should be for you. Do you seek the fast and flashy life of the Hollywood jet set or do you gravitate toward million dollar power plays in the world of business? In either case you might be forced to accept the proposition of taking your place in the shadow of a very dynamic woman.

Vote in our poll for Paris Hilton or Ivanka Trump, and let us know in the comments why your choice has the financial edge in this match-up. Also be sure to check out our other Money Face-Offs.

Permalink | Email this | Linking Blogs | Comments

SEC after Dow Jones board member David Li for insider trading

Kevin Kersten — 2007-07-18T18:05:00+00:00

Filed under: SEC filings, Deals, Bad news, From the boards, Insiders, Rants and raves, Scandals, News Corp'B' (NWS), Dow Jones and Co (DJ), Hilton Hotels (HLT), Options, aQuantive Inc (AQNT)

Insider trading has been running rampant on Wall Street and now the SEC has sent a Wells Notice to David Li, a board member of Dow Jones for insider trading and leaking information about the Rupert Murdoch's News Corp (NYSE: NWS) bid for the company. David Li is Chief Executive of the Bank of East Asia -the third largest bank in Hong Kong so he is a little harder to get, but that is why they are filing suit.

Insider trading has given me plenty to talk about in recent blogs. Dow Jones (NYSE: DJ), aQuantive (NASDAQ: AQNT), Hilton (NYSE: HLT) and Energizer (NYSE: ENR) are a few of the companies I have spotted funny activity on recently.

Trading with inside information is illegal and everyone knows it. But it can also be very profitable. If you know what you are doing you can get 100%, 300% or 5,000% returns over night. Some of the options traded on Dow Jones had an over 5,000% return. Options bought for 30 cents became worth $15. If you have insider information and know what you are doing it can be like picking the winning lottery numbers. However, it does not take long for people to get suspicious, as it is sort of like winning the lottery multiple times in a row. Many times the illegal activity takes place and then it becomes a game of moving the money around, but sometimes the SEC catches up.

I hope the SEC gets hold of Sir David Li and throws him in stocks. No not the kind he was trading in but the kind medieval criminals were put in. As someone knighted and with a honorary Doctorate Degree from Cambridge, he should know better. Some may say insider trading seems like a victimless crime, but those investors who had their stock called away were wrongfully robbed of the higher buyout prices. It is truly sad some of the individuals who have been caught doing this in recent years. They are smart educated successful individuals who should know better. They deserve the punishment they get for knowingly breaking the law.

I was checking the board on the company he works for,but now he can add common "crook" to his biography. I think "Crook" should go between "The Order of the Rising Sun" and "Gold Rays with Neck Ribbon." I kid you not... Check this out...

"Dr. The Hon. Sir David LI Kwok-po, GBM, GBS, OBE, MA, Hon. LLD (Cantab), Hon. DSocSc, Hon. LHD, Hon. DBA, FCA, FCPA, FCPA (Aust.), FCIB, FHKIB, FBCS, CITP, FCIArb, JP, Officier de L'Ordre de la Couronne, Grand Officer of the Order of the Star of Italian Solidarity, The Order of the Rising Sun, Gold Rays with Neck Ribbon,
(Chairman & Chief Executive)"

i am sure there will be plenty more before this saga comes to an end...

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades 7-11-07: ATVI, CME, HLT and TSM

Kevin Shult — 2007-07-11T10:57:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Bad news, Chicago Merc Exch Hld'A' (CME), Activision Inc (ATVI), Hilton Hotels (HLT)

MOST NOTEWORTHY: Today's noteworthy downgrades involved Hilton Hotels Corp (HLT), TransAlta Corp (TAC), Cascade Corp (CAE), Activison (ATVI) and Atheros Communications (ATHR):

Stifel downgraded Hilton Hotels (NYSE: HLT) to Hold from Buy at Stifel based on the recent acquisition.

TD Newcrest cut TransAlta (NYSE: TAC) to Sell from Hold and doesn't consider an LBO of the company likely.

Rodman cut Cascade (NYSE: CAE) to Market Underperform from Market Perform based on valuation.

Activision (NASDAQ: ATVI) was downgraded to Neutral from Outperform at JP Morgan based on valuation and the competitive environment.

AG Edwards believes Atheros Communications (NASDAQ: ATHR) has a less favorable risk/reward and cut shares to Hold from Buy...

OTHER DOWNGRADES:

Needham downgraded Kyphon (NASDAQ: KYPH) to Buy from Strong Buy.

UBS downgraded Taiwan Semiconductor (NYSE: TSM) to Neutral from Buy.

Deutsche Bank cut Chicago Mercantile Exchange Holdings (NYSE: CME) to Hold from Buy.

Roche Holding Ltd (OTC: RHHBY) was downgraded to Hold from Buy at Citigroup.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Permalink | Email this | Linking Blogs | Comments

No June gloom for hedge funds

Tom Taulli — 2007-07-11T09:00:00+00:00

Filed under: Private equity, Hilton Hotels (HLT), Bear Stearns Cos (BSC)

According to Hennessee Group, the hedge fund industry had a good June. The average hedge fund posted a 0.88% return. This compares to the S&P's -1.8% performance for the same period.

So far for this year, the average hedge fund has returned 8.7%. How about the S&P? It has clocked about 6%.

While interest rates have been an issue, the fact is that the buyout boom has been extremely helpful for equities. And as seen with the IPO filing of KKR and mega deals like the buyout of Hilton Hotels Corp. (NYSE: HLT), there still appears to be momentum with M&A and private equity.

It's also encouraging that hedge funds have been able to deal with the subprime meltdown. Interestingly enough, it looks like some hedge funds aggressively shorted subprime vehicles. Paulson & Co., for example, posted a 40% return in June because of its bearish bets (there's an excellent story on this in Bloomberg.com).

With credit agencies like S&P and Moody's reducing their ratings of subprime mortgage backed securities, there may be more shorting opportunities for hedge funds. There is also likely to be more pain for firms like Bear Stearns (NYSE: BSC), which have been on the wrong side of the subprime market.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Read | Permalink | Email this | Linking Blogs | Comments

Hilton Hotels sued over sale to Blackstone

Zac Bissonnette — 2007-07-08T12:10:00+00:00

Filed under: Deals, Law, Hilton Hotels (HLT), Blackstone Group L.P (BX)

A pair of lawsuits seeking class-action status accuse Hilton Hotels (NYSE: HLT) management of breaching their fiduciary responsibility to shareholders when they agreed to sell the company to The Blackstone Group (NYSE: BX) for $20.1 billion. The investors claim the size of the offer was inadequate, and the $560 million break-up fee Hilton will have to pay Blackstone if it backs our of the deal is excessive. The amount is so large they contend, that it effectively guarantees that the private equity firm will go home with the prize.

There are a couple of interesting things about this. First, the break-up fee does seem excessive. The idea of a break-up fee, ideally, is to compensate the prospective buyer for its time/use of resources if a deal fails to go through. The $560 million figure would give Blackstone a huge windfall if the deal fails to go through. While the lawsuit is unlikely to go anywhere, I would ask Hilton why such a large break-up fee was necessary.

Second, this shareholder angst may be one of the factors that will lead to the decline of the buyout boom. In recent months it seems, shareholders have grown increasingly feisty in taking on buyout offers they deem too low. This wave of shareholder activism, which often leads to higher buyout prices, can cut into the private equity firms' margin for error.

But this is probably a good thing: If a private equity firm can take a company private and make a ton of money, it might make more sense for the company to stay public and provide that value to shareholders.

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades 7-06-07: DCEL, HLT and RUTH

Kevin Shult — 2007-07-06T09:50:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Bad news, Ruth's Chris Steak House (RUTH), Hilton Hotels (HLT)

MOST NOTEWORTHY: Ruth's Chris Steak House (RUTH), Hilton Hotels (HLT) and Champps Entertainment (CMPP) were today's noteworthy downgrades:

Goldman cut shares of Ruth's Chris Steak House (NASDAQ: RUTH) to Sell from Neutral following the company's preliminary Q2 sales, as they expect relative underperformance over the near-term. Goldman believes macro headwinds could weigh on Ruth's client base and keep traffic negative for the rest of the year.

Hilton Hotels (NYSE: HLT) was downgraded by a number of firms after the Blackstone Group (BX) takeout offer: Jefferies and Citigroup cut shares to Hold from Buy, Calyon downgraded shares to Neutral from Buy, Raymond James downgraded shares to Market Perform from Strong Buy, Suquehanna cut shares to Neutral from Positive and Bear Stearns downgraded Hilton Hotels to Peer Perform from Outperform.

B. Riley downgraded shares of Champps Entertainment (NASDAQ: CMPP) to Neutral from Buy to reflect the buyout offer from F&H Acquisition Corp...

OTHER DOWNGRADES:

B. Riley downgraded shares of ACR Group (AMEX: BRR) to reflect the company's merger agreement with Watsco Inc (WSO).

Jefferies cut Dobson Communications Corp (NASDAQ: DCEL) to Hold from Buy.

Piper Jaffrey downgraded Selective Insurance (NASDAQ: SIGI) to Market Perform from Outperform.

Kaufman downgraded Parametric Technology (NASDAQ: PMTC) to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Permalink | Email this | Linking Blogs | Comments

Before the bell 7-6-07: AAPL, BA, BP, HLT, BKC ...

Melly Alazraki — 2007-07-06T08:39:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Google (GOOG), Apple Inc (AAPL), eBay (EBAY), Starbucks (SBUX), McDonald's (MCD), Boeing Co (BA), BP p.l.c. ADS (BP), Hilton Hotels (HLT), Burger King Hldgs (BKC), Blackstone Group L.P (BX)

Main market news here.

A consumer advocacy group, the Foundation for Consumer and Taxpayer Rights, isn't happy about Apple Inc.'s (NASDAQ: AAPL) battery replacement program for the iPhone, which currently requires ssers to submit their iPhone to Apple for battery service, a service that would cost users $79, plus $6.95 for shipping, and will take three business days. The battery, is apparently soldered to the device.

The Boeing Co.'s (NYSE: BA) new jet, the 787 Dreamliner, is set to launch on July 8 (very clever: 07-08-07). There have been fears the company may have to delay the launch due to several setback it had encountered in assembling the jet, but apparently, in two days, we will get to see it. "It won't have passenger seats, it won't fly -- in fact, it won't even motor itself down the runway." But it will be unveiled at its Seattle-area factory on 7/8/7 nonetheless.

Deutsche Bank upgraded Royal Dutch Shell (NYSE: RDS) and BP (NYSE: BP) to Buy from Hold, increasing both target prices to $95.82 per U.S.-listed share and to $81.09 per U.S.-listed share. DB raised targets on other oil companies as well, seeing the cycle as being still far-off its peak. Shell shares are up 2.5% in pre-market (7:45 a.m.) and BP shares are up 0.9%.

Following the footsteps of other chains such as Starbucks Corp. (NASDAQ: SBUX) and rivals such as McDonald's Corp. (NYSE: MCD) that have already announced such measures, Burger King (NYSE: BKC) also announced it will use trans-fat-free cooking oil at all its U.S. restaurants by the end of next year.

Bloomberg has a nice feature about Meg Whitman, eBay Inc.'s (NASDAQ: EBAY) CEO and how it accomplished "what most Internet chiefs can only dream of: She's beating Google Inc. (NADSAQ: GOOG) in at least one corner of the Web." The article refers, of course, to eBay's PayPal, but continues with a more in-depth look at both companies' growth and businesses.

And finally, comScore reports about Facebook's growth in the past year since the open registration came into effect. Unique visitors grew by 89% while page views grew by 143%.

Five analysts, including Bear Stearns and Citigroup, downgraded Hilton Hotels (NYSE: HLT), mostly from Buy/Outperform to Hold/Neutral as a better bid from the one given by Blackstone Group (NYSE: BX) is unlikely.

Permalink | Email this | Linking Blogs | Comments

Is Paris Hilton taking stock trading tips from Martha Stewart?

Kevin Kersten — 2007-07-05T19:00:00+00:00

Filed under: Major movement, Insiders, Law, Scandals, Dow Jones and Co (DJ), Hilton Hotels (HLT), Options, Economic data, aQuantive Inc (AQNT), ImClone Systems (IMCL)

In the past Mike Fowlkes, Sarah Gilbert and I have pointed out what seems blatant illegal activity in Dow Jones (NYSE: DJ) and Aquantive (NASDAQ: AQNT). Now there is activity in Hilton Hotels (NYSE: HLT) worth taking a look at.

Hilton Hotels closed up 9.34 to $45.39 today on news the company agreed to be acquired by Blackstone Group (NYSE: BX) in a deal valued at $26 billion. A reader pointed out interesting activity on Hilton Hotels.

With the stock up, let's look and see how many "lucky" traders picked up calls on the stocks. A call option gives the buyer the right to buy the stock at a set price. If you think a stock is going to go up you can buy the right to buy that stock at a set price, in the hopes that it does in fact go up, as you expect.

The Hilton July 35 calls (HLTGG) had a volume of 3,660 Tuesday with a high price of $1.90. That is above the average volume of 314 calls per day since the options were issued and just above the previous record high daily volume of 3,616 on 5/31. Those calls are now worth about $10.50 a piece so a 450% gain over two days isn't bad. I have to say this looks suspicious; sort of like a man running from a bank with a bag of money.

Looking at the Hilton August 40 calls (HLTHH) it becomes a little more obvious. Tuesday there were 5,844 contracts for 0.85 cents or less. In the past three weeks -- since the options came out there were only a total of 70 contracts traded. The contracts bought Tuesday are now worth about $5.80 a piece. A 582% gain in two days, representing about $2.8 million in profits.

If that isn't enough money ...there is more. The July 40 calls (HLTGH) saw 3,312 contracts trade Tuesday for less than 0.40. Now at 5.50 it is a 1,275% return for another $1.6 million in profits.

While I do not know who made the trades, their intentions and what they knew when; I am betting they will soon be getting a call from the SEC. In all fairness, just because I see a man wearing a black ski mask running out of the bank carrying a bag of money and a gun doesn't mean he is a bank robber. These trades could be legit, but they trades have all the tell-tale signs of insider trading. By the way has anyone been following Paris recently? Has she been meeting with Martha Stewart?

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

Permalink | Email this | Linking Blogs | Comments

Cramer lists Mariott among potential hotel targets

Brent Archer — 2007-07-05T13:10:00+00:00

Filed under: Major movement, Analyst reports, Deals, Good news, Industry, Hilton Hotels (HLT), Starwood Hotels Worldwide (HOT), Marriott Intl'A' (MAR), Options, Technical Analysis, Blackstone Group L.P (BX)

Marriott International Inc. (NYSE: MAR) opened at $48.77. So far today the stock has hit a low of $46.82 and a high of $48.85. As of 10:55, MAR is trading at $47.45, up $2.99 (6.7%).

After hitting a one year high of $52.00 in April, the stock dropped sharply to find support just below $44. Hotels are soaring today after Blackstone Group (NYSE: BX) announced plans to purchase Hilton Hotels (NYSE: HLT). Jim Cramer says that some other hotel stocks are deserving of takeovers, and he is tagging Marriott as possible buyout candidate in the aftermath of the HLT deal. Other potential targets mentioned are Starwood Hotels (NYSE: HOT) and Wyndham (NYSE: WYN). Our own Douglas McIntyre sees MAR and HOT as targets as well. Recent technical indicators for MAR have been bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $40 range. MAR hasn't been below $40 since October and has shown support around $43 recently. This trade could be risky if the acquisition buzz surrounding the hotel stocks dies down with little action, but even if that happens, it looks like this stock could find support right near $45, where it bounced a few times in the past two months.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MAR, BX, HOT, HLT, or WYN.

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades 7-05-07: ACH, ARRS, GM and HLT

Kevin Shult — 2007-07-05T10:21:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Bad news, General Motors (GM), Hilton Hotels (HLT)

MOST NOTEWORTHY: General Motors (GM), Aluminum Corp of China (ACH), Greenbrier Cos (GBX) and Monsanto (MON) were today's noteworthy downgrades:

Bear Stearns cut General Motors (NYSE: GM) to Peer Perform from Outperform based on valuation and growing fundamental headwinds.

HSBC downgraded Aluminum Corp of China (NYSE: ACH) to Underweight from Neutral as they believe prices of lightweight metal have peaked.

Greenbrier Cos (NYSE: GBX) was cut at Bear Stearns to Peer Perform from Outperform on valuation.

Matrix USA downgraded Monsanto (NYSE: MON) to Buy from Strong Buy on valuation...

OTHER DOWNGRADES:

Sandler cut Western Alliance Bancorporation (NYSE: WAL) to Hold from Buy.

UBS cut Arris Group (NASDAQ: ARRS) to Neutral from Buy.

AG Edwards downgraded Hilton Hotels (NYSE: HLT) to Sell from Buy. Gabelli cut Hilton Hotels to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Permalink | Email this | Linking Blogs | Comments

With Hilton sold, will Marriott and Starwood be next?

Douglas McIntyre — 2007-07-05T09:45:00+00:00

Filed under: Deals, Competitive strategy, Private equity, Hilton Hotels (HLT), Starwood Hotels Worldwide (HOT), Marriott Intl'A' (MAR), Blackstone Group L.P (BX)

Now that Blackstone (NYSE: BX) has bought Hilton (NYSE: HLT) for $26 billion, The Wall Street Journal is asking [subscription required] whether Marriott (NYSE: MAR) and Starwood (NYSE: HOT) might be next.

The question is reasonable. Hilton has outperformed the other two companies in the stock market over the last two years, with its shares up 50%. Some of that is due to recent takeover speculation.

Marriott's shares are up only 30% over that period and Starwood's only 15%. All three companies have market caps in the $15 billion to $20 billion range, so none is so large as to be outside the financial ability for a private equity firm to take them over.

But, Starwood may make the easier target. Marriott is still controlled by its founding family while Starwood has had a bit of musical chairs in its executive suite. The company's CEO left in April.

Starwood has had virtually no growth in revenue over that last four quarters, and had low operating income in its last reported quarter. If private equity interests think they can improve that, the company becomes an attractive candidate.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Read | Permalink | Email this | Linking Blogs | Comments

Buffett's biggest blunders, Martha Stewart vs. Katonah & Top 10 portfolio pitfalls - Today in Money & Finance - 7/5

Allan Halprin — 2007-07-05T09:07:00+00:00

Filed under: Google (GOOG), Apple Inc (AAPL), Coca-Cola (KO), Berkshire Hathaway (BRK.A), Money and Finance Today, Hilton Hotels (HLT), Starwood Hotels Worldwide (HOT), Marriott Intl'A' (MAR)

In the News:

· Hilton Hotels Bought By Private Equity Firm Blackstone for $26 Billion

· Will Blackstone's Purchase of Hilton Hotels Put Marriott, Starwood in Play?

· Coca-Cola Weighs Bid for Snapple, Mott's

· Carlos Slim May Have Replaced Bill Gates as World's Richest Person

· Private Equity Firm KKR Files For $1.25 Billion IPO

· Apple's iPhone Misses Sales Targets

· Mortgage Rates Stand Pat

Martha Stewart vs. the Town of Katonah
Village locals welcomed their new neighbor-until she tried to trademark the town's name. Now, they're fighting back. Katonah's locals are up in arms about Stewart's attempt to claim the name of the town, so it can be used to sell paints, lighting, and home accessories. What upsets locals is not that Stewart wants to use the Katonah name, but that she wants to lay claim to it with the U.S. Patent & Trademark Office. If she succeeds, they fear they will have to get approval from her company to use the name themselves.
Katonah vs. Martha Stewart - BusinessWeek

How Safe Are Imported Goods?
Most imports meet U.S. standards for health and safety, but recent recalls involving products from China have left many people worrying about the safety of everyday items, and what -- if anything -- they can do about it.
How Safe Are Imported Goods? - WSJ.com
Also: Nearly 20% of All Food on China's Shelves Are Poor Quality

The House That Helped Build Google
After earning her MBA in 1998, Susan Wojcicki bought 232 Santa Margarita Ave. for about $600,000. She rented the garage to two Stanford students for $1,700 a month to help with the mortgage. The renters: no ordinary slackers, but the Google Guys, Larry Page and Sergey Brin, who incubated Google right there. Her life-changing decision to open her home to Brin and Page did more than just help start the world's most-popular search engine.
The house that helped build Google - USATODAY.com

Top 10 Portfolio Pitfalls
Whatever problems you encounter in your own portfolio, you're not alone. Plenty of other investors trip over the same stumbling blocks. Looking for the following weaknesses in your portfolio will help you think about it as a whole and not simply as a collection of individual investments.
Improving Your Retirement: Portfolio Pitfalls - Morningstar

Warren Buffett's Biggest Blunders
The Oracle of Omaha is an investing legend, but he's also human. Even the man behind Berkshire Hathaway has been way off from time to time. Here are seven of his biggest flops.
Buffett's Biggest Blunders - BusinessWeek
Also: How Buffett Bounces Back From Blunders

New Hazzard: Driving While Wired
Lawmakers in a dozen states are trying to ban drivers from using video games, computers and fax machines in cars in a new wave of driver-distraction legislation. States also are trying to track how much of a threat electronic gadgets such as iPods and front-seat movie screens pose to safety.
New hazard: Driving while wired - USATODAY.com

Permalink | Email this | Linking Blogs | Comments

Before the bell 7-5-07: Holiday mood continues, stock futures higher

Melly Alazraki — 2007-07-05T07:51:00+00:00

Filed under: Before the bell, Major movement, Coca-Cola (KO), General Motors (GM), Indices, Hilton Hotels (HLT), Economic data, Blackstone Group L.P (BX)

Stock futures are indicating flat to higher start for the day after the July 4 holiday. Deal news and upcoming economic reports are on traders' minds. Interest rates will continue to be a concern now that the Bank of England has raised rates, as would mixed messages from Asian markets with Shanghai dropping 5.3% and Hong Kong hitting another high.

Yesterday U.S. markets were closed for the July 4 holiday, but closed the short session on Tuesday with moderate advances.

Today, several indicators are due.

At 8:30 a.m., the weekly job claims report is due, but will only be a prelude for tomorrow's June employment report.
At 10:00 a.m., the Institute of Supply Management's non-manufacturing poll for June is due and could show a slight decline.
At 10:30 a.m., weekly crude inventories are due. While expectations are generally for higher gasoline supplies and refinery output, oil prices rose today due to concerns over the summer driving season and violence in Nigeria. Oil remained above $71 a barrel.

Overseas, Asian markets mostly finished higher except for Chinese stocks. Following a rule that went into effect today that made it easier for mainland investors to invest overseas, China's Shanghai Composite index finished 5.3% lower. Hong Kong's Hang Seng Index, however, hit another high. Japanese stocks rose for the sixth straight session.
Meanwhile, European stocks were lower, concerned of a rate hike by the central banks. The Bank of England indeed raised its benchmark interest rate later in the session, making this hike the fifth time in a year. The European Central Bank is expected to leave rates unchanged.

Corporate news:

Late Tuesday night, Blackstone Group LP (NYSE: BX) has agreed to buy Hilton Hotels Corp. (NYSE: HLT) for a $26 billion. HLT is up over 28% in pre-market trading (7:10 a.m.). What hotels could be next?

Meanwhile, fellow private equity firm, Kohlberg Kravis Roberts filed to go public also on Tuesday to raise up to $1.25 billion.

Huntsman Corp. (NYSE: HUN) shares are up 10.7% in pre-market trading (7:26 a.m.) after the chemical company said a private-equity firm has made a cash buyout offer of about $6 billion, higher than the bid from a Dutch company announced last week.

The Coca-Cola Co. (NYSE: KO) is considering its options, either buying Cadbury Schweppes PLC's Snapple ice tea brand, or building its own.

Weighing stocks down, however, could be General Motors Corp. (NYSE: GM) which on Tuesday posted a 21.3% decline in June sales compared to last year.

Permalink | Email this | Linking Blogs | Comments

Option update 7-3-07: Blackstone purchasing Hilton

Paul Foster — 2007-07-04T06:35:00+00:00

Filed under: Major movement, Deals, Press releases, Hilton Hotels (HLT), Starwood Hotels Worldwide (HOT), Marriott Intl'A' (MAR), Options, Blackstone Group L.P (BX)

Hilton (NYSE: HLT) volatility and volume elevated prior to Blackstone paying $26 billion. HLT announced Blackstone Group (NYSE: BX) will acquire all the outstanding common stock of HLT for $47.50 per share. HLT closed at $36.05. I reported near the close of trading on 7/3/07 "option volume & volatility Elevated as HLT rallies 6%." HLT total volume of 32,490 contracts and HLT July option implied volatility of 39 was aggressive, above its 26-week average of 31 according to Track Data, suggesting larger risk.

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Permalink | Email this | Linking Blogs | Comments

Blackstone reserves $26 billion for Hilton buyout

Tom Taulli — 2007-07-03T19:35:00+00:00

Filed under: Deals, Private equity, Hilton Hotels (HLT), Blackstone Group L.P (BX)

Is private equity really dead?

Well, it looks like the death has been widely exaggerated. Not only has KKR filed to go public, but the newly public Blackstone Group LP (NYSE: BX) has agreed to buy Hilton Hotels Corp. (NYSE: HLT) for a cool $26 billion.

It was back in 1919 that Conrad Hilton purchased his first hotel in Cisco, Texas. He certainly had lots of drive and ambition.

Now, the company has 2,800 hotels and 480,000 rooms across 76 countries.

But, the company thinks it's better keeping things private (at least for now). And, hey, why not take billions from the hungry Blackstone?

The deal comes at $47.50 or a 40% premium from yesterday's closing stock price.

When the markets open on Thursday, it will be interesting to see how Blackstone's stock reacts to the news.

Actually, the deal is a good fit for Blackstone. After all, the firm has been ravenous for hotel/resort properties. In fact, it owns more than 100,000 hotel rooms and has brands like La Quinta and LXR Luxury Resorts and Hotels.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Read | Permalink | Email this | Linking Blogs | Comments

Starbucks setting a new trend by promoting movies for a cut of the action?

Tom Barlow — 2007-06-29T14:01:00+00:00

Filed under: Deals, Competitive strategy, Pfizer (PFE), Starbucks (SBUX), Marketing and advertising, Yum Brands (YUM), Dow Jones and Co (DJ), Hilton Hotels (HLT)

Yesterday we learned that Starbucks (NASDAQ: SBUX) is taking another shot at the movie promotion business by pushing (for a cut of the action) the National Geographic movie "Arctic Tale." Starbuck's initial effort, last year's "Akeela and the Bee," had indifferent results.

While most of the big releases for 2007 already have commercial tie-ins, I thought about other companies that might make money by offering some targeted marketing. Perhaps

Ratatouille -- KFC (Yum Brands, NYSE: YUM)
The 40-year old Virgin -- Weight Watchers Intl (NYSE: WTW)
Sicko -- The Church of Scientology
Live Free or Die Hard -- Viagra (Pfizer, NYSE: PFE)
Evan Almighty -- Chris Craft
Transformers: The Mitt Romney Campaign
The Simpsons Movie: Sylvan Learning
Hairspray: Lane Bryant (Charming Shoppes, Inc., NASDAQ: CHRS)
Hostel: Part II -- Hilton Hotels (NYSE: HLT)
1408 -- Hostelling International

And, as a special subscriber gift offer promotion,

The Wall Street Journal (Dow Jones, NYSE: DJ) -- Citizen Kane

Read | Permalink | Email this | Linking Blogs | Comments

Examining Carl Icahn's portfolio: Hilton Hotels

Brent Archer — 2007-06-27T13:27:00+00:00

Filed under: Hilton Hotels (HLT), Options, Technical Analysis

Hilton Hotels Corp. (NYSE: HLT) opened at $33.75. So far today the stock has hit a low of $33.44 and a high of $33.80. As of 11:45 this morning, HLT is trading at $33.62, down $0.28 (-0.8%).

After hitting a one year high of $38.00 in April, the stock has dipped slightly, bouncing off support a few times just below $34. Billionaire investor Carl Icahn dumped all of his HLT shares in the first quarter of this year, indicating sentiment that HLT is unlikely to rise above its previous high. In fact, the stock is breaking below its support line today, which is not a good sign. Recent technical indicators for HLT have been bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $40 range. HLT has never been above $40 and has shown resistance around $36 recently. This trade could be risky if the company's earnings (due out on July 31) impress, but even if that happens, HLT would have to break through the three tops it has already formed this year between $36 and $38 before this position would be in trouble.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls a position in HLT.

Permalink | Email this | Linking Blogs | Comments