The Manhattan District Attorney's office delivered a subpoena to Goldman Sachs:
Thursday requesting information related to testimony Goldman executives gave to the U.S. Senate’s Permanent Subcommittee on Investigations, according to a person familiar with matter.
Senator Carl Levin, the chair of the committee, called on the Justice Department and the Securities and Exchange Commission to investigate whether Goldman executives misled the committee. The committee's report on the financial crisis accused Goldman of misleading buyers of derivatives related to mortgages and profiting at the expense of clients.
Goldman has said it will not comment on specific legal or regulatory issues.
Last month it was widely reported that Goldman expected to receive subpoenas from the Justice Department. It was not previously known that the District Attorney was investigating Goldman.
( Source: CNBC )
( Source: CNBC )
1) US factory orders felt in April to 1.2 percent to $ 440.4 billion while estimate was 1 percent decline according to Reuters.Transportation orders plunged 9.3 percent in April, nearly wiping out a 10.6 percent rise in March orders. It was the sharpest falloff in monthly transportation orders since an 11.9 percent fall in December.
2) US jobless claims fall less than expected. Initial claims for unemployment benefits were down 6000 to 4,22000 according to report from Labor department, while the economists have expected for a fall to 4,15000.
3) US retailers have reported mixed same stores sales in may as consumers being picky to choose due to mainly higher fuel price and sluggish economy. Although, most retailers' figures beat analysts' expectations of 5.4 percent.
A table of the results so far follows:
MAY 2011 SAME-STORE SALES |
| Retailers | May 2011 Estimates | May 2011 Actuals |
| Costco | 11.2% | 13% |
| BJ's Wholesale | 7.2% | 7.4% |
| Target | 3.5% | 2.8% |
| JC Penney | 3.4% | (1.0%) |
| Kohl's Department Store | 2.9% | 0.8% |
| JW Nordstrom | 5.9% | 7.4% |
| Saks Department Store | 6.5% | 20.2% |
| Stage Stores | 3.0% | 0.0% |
| Macy's | 5.6% | 7.4% |
| Gap | (1.1%) | (4.0%) |
| TJX | 3.1% | 2.0% |
| Limited | 6.2% | 6.0% |
| Ross Stores | 3.7% | 4.0% |
| Stein Mart | 0.5% | 0.7% |
| Hot Topic | 1.0% | 0.4% |
| Wet Seal | 4.0% | 2.9% |
| The Buckle | 8.7% | 8.8% |
| Zumiez | 7.2% | 7.8% |
| Walgreen | 4.6% |
Source: Thomson Reuters; Figures in parenthesis are losses.
( Source:Reuters, CNBC )
All educational stocks have jumped most today and top gainers on NASDAQ as department of education ruled out soften financial aid requirements for private colleges, This decision was in favor of educational companies listed below.
(NASDAQ: COCO )Corinthian Colleges,
(NASDAQ:STRA) Strayer Education, Inc.
(NASDAQ:CECO) Career Education Corporation
(NASDAQ: EDMC) Education Management Corporation
( NASDAQ: LOPE )Grand Canyon Education, Inc.
(NASDAQ: LINC ) Lincoln Educational Services Corporation
(NASDAQ:CPLA) Capella Education Company.
(NASDAQ: CHRS ) Charming Shoppes, Inc.
(NASDAQ:APOL ) Apollo Group, Inc.
( NASDAQ:APEI ) American Public Education, Inc.
Below is the detailed news
A rule that threatens to cut off tuition aid to some programs run by for-profit colleges was softened in the final version issued by the U.S. Education Department, ending a long regulatory process that has clouded growth outlook for education companies.
The changes to the rule are a big positive as they drastically lower the threshold for education companies to qualify for federal student aid -- the main source of profit -- and gives them more time to adapt to the rules.
The rule is part of the Obama administration's crackdown on for-profit schools, accused of overcharging students, burdening them with debt and not preparing them adequately for jobs.
The department finalized a set of 13 rules last year but delayed the hotly debated "gainful employment" rule after much opposition.
The colleges were preparing for a tough rule and had made changes to their admissions policies, leading to sharp declines in enrollment numbers.
"We no longer expect gainful employment to limit growth at the majority of for-profit institutions," Jarrel Price and Heights Analytics said.
Morgan Stanley analyst Suzanne Stein said the sector has arguably become "more investable" given clarification on the rule, but slowing enrollment will continue to be a overhang.
Analysts said the rules benefited every company across the sector. Companies like Apollo and Capella Education, which were in the restricted zone to access federal aid based on the repayment rate metric, will now not have barriers to grow their student base.
Officials delayed until 2015 before a program can be denied tuition loans over too many former students in the same course having defaulted on their loans.
According to the rule, due to go into effect mid-2012, at least 35 percent (down from 45 percent) of graduates and dropouts of programs must be paying back loans, or their loan payments must equal 30 percent of discretionary income or 12 percent of total earnings.
"The most significant change for this group is that they will now have more time to improve their rates and try to cross the 35 percent all-clear threshold -- much more obtainable than the draft rule's 45 percent," said analyst Price.
( Source: Reuters )
Corinthian Colleges Inc ( NASDAQ: COCO ), stock of the company jumped more than 38% in the morning trade as company announced a partnership with custom motorcycle shop. Volumes and options activity are trending a bullish breakout as per below. There was a spike in yesterday's trading session.
Our Call: Buy positions for trade and investment purpose.
Below is the news:
"Orange County Choppers" is a hot trend Thursday after WyoTech, a division of Corinthian Colleges(COCO),announced a partnership with the custom motorcycle shop.
Under the partnership, WyoTech students will help construct a custom-built motorcycle with the guidance of OCC founder Paul Teutul Sr., and students also will intern at the facility in upstate New York. The bike will be revealed this fall on an episode of "American Chopper" on the Discovery Channel.
Options Activity:
 |
| Corinrhian Colleges Inc |
The COCO June 4 calls were the second-busiest contract, trading more than 5,000 times for $0.15 to $0.30. CECO's June 23s and June 24s followed with volume of 4,301 and 3,640, respectively.
Including ITT Educational Services, overall option volume in the group was 8 times greater than average. Calls accounted for a bullish 78 percent of the activity in the four names, with purchases dominating the order flow.
The stocks have been getting killed since April 2010 after government officials expressed an intention to tighten student-loan standards. The 12-month declines range from 17 percent by CECO and 69 percent by COCO, but the stocks have shown signs of stabilizing in about the last month.
Although the rules may seem draconian, the market has already priced in considerable negative news. Given that these companies have considerable short interest, little debt, and trade at deeply discounted multiples, clarity on the regulatory backdrop could draw more investors back to the sector.
Westinghouse Solar Inc ( NASDAQ: WEST ), stock has logged more than 99% upside yesterday, we have given a buy call to initiate a small positions for intraday gains, when stock was just trading 18% up. Again stock is not for investment purpose, positions may be cut off. Read More about
our call
our call
India Govt may amend policy on coal to ensure more supplies
The problem of deteriorating output growth in spite of regulations in the coal sector is casting a huge shadow on the coal market of India. The problem now appears to have escalated to a level that is persuading the government to issue further regulations to ensure increasing and steady supply of coal from the industry.
Coal industry has always been a highly regulated one; however, the policies undertaken by the ministry seem to be proving inadequate even for a sector such as power, which the government has prioritised with regard to the distribution of coal. The CIL said recently that the company can only deliver 41 metric tonnes of coal out of the 306 metric tonnes mentioned in the Letter of Assurances issued to the power sector for producing 65 gigawatts of energy in an expansion scheduled during the year 2011/12. The supply from CIL will ensure production of only 12 gigawatts.
Under the current policy regime of the Indian coal ministry, captive mining is set up for players apart from Central government and other central or state owned companies such as CIL and SCCL and Mineral Development Corporations of the State governments.
Companies engaged in production of iron and steel, power, washing of coal from the mines and other end-uses the government notifies are allowed to produce coal, but only for captive consumption.
Companies engaged in production of iron and steel, power, washing of coal from the mines and other end-uses the government notifies are allowed to produce coal, but only for captive consumption.
The government has also facilitated sub-leasing of isolated small pockets of coal deposits that cannot be developed in a large scale for the benefit of economic development and those which do not require rail transport for other private parties.
Despite this seemingly inclusive regime, coal production is below desired levels in the country, unable to cater to industries.
The Isolated mining pockets leased out to private parties are often under developed and present with insurmountable geological challenges. Mines with infrastructure, on the other hand, is rarely leased out. Since 1993 almost 40 such mines were allocated, and that too on a joint basis, which has lead to problems such as varied economic interests of the recipients and thus time bound development get strained and delayed. Out of these 40 mines allocated, only a few of them have been developed.
The government also reported of 46 delayed projects of CIL earlier during the month of May. The supply shortfall of output has brought the state owned CIL to the verge of dishonouring Letter of Assurances (LoA) that promise delivery of 450 million tonnes.
The Indian power sector was reported of receiving only 303 million tonnes as against the expectation of 335 million, down 10 percent, during 2010-2011. The total coal production on the other hand fell 6 percent during the same time.
In addition, environmental issues, land acquisitions problems and relating snags have lead the CIL to reduce its output target to 447 million tonnes as opposed to the preliminary target set at 520 million tonnes for the 2011/12 fiscal.
The government might free the CIL from such LoAs, in search of alternative amendments to the coal distribution policy to make it more inclusive and assure prompt delivery. However, the coal industry in India is yet to emerge, with possession of 10 percent of the world's total coal reserves.
Impact: Positive for CIL. It will be able to issue the coal that has been mined under LoA to other parties.
Multibagger Stock… "PITTI LAMINATIONS LTD"(BSE Code: 513519) at 42/- Target 75/-.
Stock Name: Pitti Laminations Ltd
Trading : NSE and BSE
CMP:Rs. 43/-
BSE Code:513519
Book Value 73/-
Operators are Accumulating daily slowly any time will go 67/- to 75/-
In this Market Value Buy for this stock; No risk and No Tensions Just invest and hold it for 1 month to 3 months will get 50% to 100% minimum.
EPS 12/- (Declared Good Results for 2011 March Quarter EPS 12/- Annual and Total year 9/-).
Estimating EPS for 2011-2012 : 17/- to 19/- (Company having Huge Orders from GE and Margins also Improved)
Dividend : 10%
Target : 69/- & 75/-in Short Time.
Upside : 99%
Downside: 1%
Operators Will Active soon in this counter; So Accumulate at this CMP and get 50% minimum Return in Short term.
Company Background:
Incorporated in 1983, Pitti Laminations Limited (PLL) is engaged in the manufacture of electrical laminations for use in various Motors, Alternators, Direct Current (DC) Machines, Pumpsets, Hydroelectric generators etc. The company also manufactures Die-Cast Rotors and Assembled Stators, besides manufacture and sale of Press Tools, Progressive Tools Jigs and Fixtures. PLL's manufacturing facilities are located at Nandigaon (Andhra Pradesh). The company has established business relationships with Siemens, BHEL, Alstom Projects, VA Tech Hydro, Crompton Greaves, Cummins Generator Technologies, ABB, Marathon Electric India, and Bharat Bijlee etc. in the domestic market and GE Consumer Products (Canada), GE Transport System (USA), Groupo Electromechanico (Mexico), E-Mod (Germany), and Welco Technologies (USA) in the overseas market.
Pitti Laminations, an ancillary manufacturer for the electrical & capital goods industry, is poised to register robust growth on the back of a strong order book position, upward movement along the product value chain and increased thrust on exports.PLL's fortunes are linked to those of the electrical & capital goods industry.Growth in the electrical and capital goods industry will benefit the company, as it will boost the demand for stampings & laminations.There has also been a buzz that Reliance Energy (REL) is eyeing a minority stake in the company. Pitti manufactures electric-grade steel stampings and laminations, the key components in motors, rotors and other electricalcomponents.Its clients include ABB, BHEL, Siemens, Suzlon and GE (US).REL is looking to have strategic tie-ups with key vendors for effective inventory management as it will be handling large projects.If it fructifies pitti would get catapulted to a new level and certainly would attract tremendous investors fancy.The company has been very aggresive in expanding its capacities to cater to the heavy demand.Though the present environment been challenging but it should be prudent to note that stock market is a place which discounts future in no time.At present prices its quoting at 4 PE its forward earnings which is cheap for a company growing great guns.It has a good dividend cover ratio and yield is hefty enough to satiate ones desire.A decent buy at present levels.
What Has Changed & What makes us positive on the stock
The economic environment has been improving and the company has received orders worth over Rs.160 crores (US $ 36 mn) from GE, to be executed over the next 2 years.
From initially starting off with manufacture of electrical laminations for use in general purpose industrial motors (25 to 30 HP), the company's sales mix has steadily shifted away from this segment in favor of application in machines used in the infrastructure sector (transportation, earth moving equipment, oil and gas exploration etc) and the power sector having relatively lower competitive intensity and lower business risk.
The company's has registered much higher operating margins for 9 months ended Dec 09 over the same period last year. (17.32% against 10.58%). In view of the recent orders from GE and the initiatives undertaken by the company in the domestic markets, we believe the revenues of the company in FY11 can be significantly higher compared with FY10. Significantly higher revenues coupled with improved margins would have a multiplier effect on the profitability of the company. In view of the above factors, we expect the profitability of the company for FY 12 to be significantly higher compared to the current FY.
Valuation of Stock:
The company currently has a market cap of roughly Rs.42 crores. In view of the order from GE & domestic sales, Sales of Rs.350 crores in FY12 may not be difficult to achieve. Assuming Operating margins of 15% conservatively (as against Margin of over 17% achieved in 9 months ended Dec 09), would result in an Operating Profit of Rs.30 crores. Factoring Interest, Depreciation and Tax, the company can easily achieve an EPS of Rs,17-19. The stock available at a PE of less than 4 and a Market Cap of Rs.42 crores for a company which can potentially make Operating Profit of Rs.30 crores in a single year, therefore looks very attractive. Stock will go easily 69/- to 75/- in Short term.
State-run Steel Authority of India's up to $778 million share sale has been delayed further, with its chairman on Wednesday saying it was difficult to launch the offering in mid-June due to unfavourable market conditions.
C.S. Verma had told Reuters last month the share sale was likely to be launched on June 14 and close three days later.
"There was no time limit for the offer but mid-June was one of the options we were considering," Verma told Reuters on Wednesday. "It will be difficult to meet that timeline."
The long delayed issue is part of the government's plan to shed stakes in nearly 60 state-run firms over the next few years, to raise funds for its social welfare programmes and to cut its fiscal deficit.
The SAIL share sale was earlier expected to be launched in the last fiscal year that ended in March.
"Once market conditions are more stable we will launch the offer," Verma said.
The pipeline of government share sales also includes deals planned by Indian Oil Corp, Oil and Natural Gas Corp and Hindustan Copper -- all of which have been delayed from the last fiscal year.
The BSE Sensex is down more than 9 percent this year, and concerns about slowing domestic economic growth, high inflation and rising interest rates have doused the appetite for equities.
Tax Rupees 60 crore to be Payable by Lodha Group
Lodha Group to pay Tax Rupees 60 crore Income Tax department officials seized crores in unaccounted cash from lockers of the employees of real estate king Lodha Group, five months after it has asked the company to pay Rs 60 crore in taxes.
In January, the I-T department had raided about 20 premises of Lodha Group on alleged misquoted of income. The surprise visit by IT official was based on a tip off suggesting overestimated expenditure using faux receipts and cash payments from clients. The invade had shielded Mangal Prabhat Lodha the Chairman and his two sons the directors of the company.
In January, the I-T department had raided about 20 premises of Lodha Group on alleged misquoted of income. The surprise visit by IT official was based on a tip off suggesting overestimated expenditure using faux receipts and cash payments from clients. The invade had shielded Mangal Prabhat Lodha the Chairman and his two sons the directors of the company.
While investigating the documents found at the premises, I-T officials came across details of bank lockers in the name of the company's employees. When these lockers, in all 26, were invaded, unaccounted cash running into crores of rupees were found. In the first raid itself, the department had found unaccounted Rs 6.5 crores in an employee's Kalbadevi locker. Addition to that Rs 1.5 crore were found in the offices and residential premises of the company's owners. The I-T officials had also held over 10 note counting machines from the group's offices. IT officials said the entire exercise was undertaken by the company to escape tax. Now, the I-T department has freezed the company's annual income at Rs 200 crore and asked the Lodha Group to pay Rs 60 crore.
