Market Roundup (SPWRA, UBS, MGM, TWX, LGF)
SunPower (NASDAQ: SPWRA) announced that it intends to restate its earnings for 2008-2010, following the completion of an internal investigation into accounting issues, resulting in $33.2 million of additional expenses and a $16.9 million reduction in income. SPWRA has also reported a 70% downturn in its Q4 profit on margin contraction. SPWRA’s shares plunged almost 10% in after hours trading.
President Obama has signed a $17.6 billion jobs bill, making it a law, which is aimed at increasing employment by providing tax breaks to businesses that hire new workers. Obama said that the measure “is by no means enough” and that more should be done to “bring about a full economic recovery.”
UBS (NYSE: UBS) is aiming at a formal discharge of board members and senior executives who were in charge during the 2007-2009 financial crisis. There has been a 2-year delay in a formal vote of confidence on management since UBS believes it would not have been appropriate to have a vote while internal and external investigations were ongoing.
The deadline to bid for Metro-Goldwyn-Mayer (NYSE: MGM) has arrived. The results may be lower than what management had expected. Only three of the six companies that had been considering bids, which includes Time Warner (NYSE: TWX) and Lions Gate Entertainment (NYSE: LGF), are likely to make offers for the debt-laden film studio. The bid range of $1.2B-1.5B is far below what MGM owes its bank lenders, which is almost $4B. If the bids are too low, the studio may have to pursue a standalone restructuring plan.
There has been a rise yet again in the number of foreclosed homes being sold by banks. Mortgage analysts at Barclays Capital have estimated a 4.6% month-over-month rise in January, indicating downward pressure on home prices.
