One Page Annotated WSJ Summary, June 15th

Jun. 15, 2006 7:50 AM ETEEM, SHY, TIP, FXI, PGJ, VWO, BA, FXE, WW, NTRI, BBSI, CASY, SMTS-OLD, PWER, LMIA, VSUNQ, TRBCQ
David Jackson profile picture
David Jackson
5.2K Followers

Summary of selected articles from this morning's Wall Street Journal with comments on related stocks. Links are to the original WSJ article, which requires a paid subscription. Use this summary as a starting point for research; check the summary against the original before trading:

Breaking News: Bank of Japan Leaves Interest Rates Unchanged.

Bet on Huge Plane Trips Up Airbus

  • Summary: Airbus announced yesterday that its double-decker passenger plane, the A380, would be delayed another six months. The delays are causing Airbus to overshoot its $12 billion A380 budget by at least $2.5 billion. Then, Singapore airlines announced that it would purchase 20 Boeing 787 "Dreamliners" instead of the Airbus A350 mid-sized plane. Boeing now has 423 orders fom 30 customers for the 787 versus Airbus' 180 orders from 14 customers for the A350.
  • Comment on related stocks/ETFs: European Aeronautic Defence & Space Co., which owns 80% of Airbus, saw its stock fall 26% yesterday. (It's not traded in the US.) Beoing's stock (BA) rose 7%. Two key points for investors: (1) the news over the last few days (and the commentary here) signalled a clear buying opportunity for Beoing, and (2) it's still not clear whether this news is being efficiently priced-in to these stocks if Boeing's stock if it was up 7% but Airbus was down 26% given that competition between the two companies is a zero-sum game. They key is to understand how much profit exposure the two companies have to the commercial business versus their defense businessess.

Chandlers Threaten Proxy Fight Over 'Disastrous' Tribune Strategy

  • Summary: Tribune's second largest shareholders, the Chandler family, attacked the company's strategy and the $2 billion stock buy back announced two weeks ago. The Chandlers own 12% of Tribune's stock and control 3 of its 11 board seats. The Chandlers made three demands in a letter

This article was written by

David Jackson profile picture
5.2K Followers
I'm the founder and CEO of Seeking Alpha. Before Seeking Alpha, I worked as a technology research analyst for Morgan Stanley in New York. After I left, I wrote The ETF Investing Guide (which you can find by clicking on "Author's Picks" below), and some articles about individual stocks, and then started inviting other people to contribute to the website. Seeking Alpha is now the dominant crowdsourced platform for discussion of stocks and investing, and the only place with coverage of many mid and small cap stocks. I have a B.A from Oxford University and an MSc from The London School of Economics, and am married with five children.

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