Catalyst Corner | E-Blast | Monday, July 26th
"High expectations are the key to everything." - Sam Walton
 

In The News

- Wall Street flat in early trade
- Leadership Tips from Tony Hayward (or Not)
- New home sales rebound 24%
- Ford Asks Buyers to Pay More for Smaller Engine in Explorer
- CORRECT: FedEx Shares Rally As Views Lifted Amid Strong Volume

Corporate Highlights

-Accel-KKR Sells iTradeNetwork for $525 Million
-Khazanah Wins Hospital Chain in Bidding War
-Sanofi-Aventis’s Biotech Play for Genzyme
-G.M.’s Free Ride on the Government’s Dime
-U.K. Media Tycoon Said Close to Deal for Channel Five
-Cuban Rushes as Judge Sets Rangers Auction Date

Pair Trade of the Day

Long MOT, Short SPY
According to today's Heard on the Street Column in The Wall Street Journal, investors currently ascribe little value to Motorola's loss-making handset business. The value of Motorola's other businesses selling set-top boxes, wireless enterprise solutions and public-safety communications, among other things add up to about $4.80 a share, says Ehud Gelblum of Morgan Stanley. Add $2 of net cash and 80 cents for the networks business that Motorola is selling to Nokia Siemens Networks, and you get $7.60, just below Friday's closing stock price of $7.75.

There are risks to those numbers. For example, the attractive public-safety business could be squeezed by state and local government budget cuts. Even so, investors seem to be getting the handset business almost for free. They will soon have to give it a stand-alone value when it is spun out along with set-top boxes early next year. Click to view this pair.

About the Pair Tool
Our proprietary Pair Tool allows users to automatically compare fundamental data while displaying graphically historical trading relationships between any two US publicly traded securities a member selects.

Our Focus List

Our focus list contains companies with significant pending catalysts. Click the company name for additional information.

- VTKT.PK (VeruTEK Technologies Inc.)
- KXLAF.PK (Kodiak Exploration Ltd.)
- CERP (Cereplast, Inc.)
- OGRSF.PK (Oro Gold Resources Ltd.)
- JUHL.OB (Juhl Wind, Inc.)

Footer
© 2010 Catalyst Corner™, 450 Seventh Avenue New York, NY 10123