BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
A recent ratings change for Warner Music Group (WMG) continued to boost trading on Thursday. At the bell, Warner landed at $5.10 after a stretched period of sub-$5 lollygagging. On Wednesday, Citigroup (Citi Investment Research) analyst Jason Bazinet wildly reversed course, transforming his 'Sell' rating to a 'Buy' and fanning the flames on a possible tie-up with EMI Music.
Bazinet also cited
relatively stable revenue streams and cash flow, a growing market share
within the recording industry, and solid access to capital. In
reaction, shares surged 5 percent to $4.78 in heavy volume on Wednesday
before pushing past the $5-mark on Thursday. The upward momentum now carries into Friday trading.
But why the sudden change of heart? Wall Street can be a shady place these days, and unexpected moves like this one seem suspicious. Indeed, Bazinet bumped his rating by two notches, while dialing his target from $2.50 to $6, all without any concomitant company changes or recent earnings announcements to prompt the move. Furthermore, the positioning of Citi - a massive lender to EMI owner Terra Firma - easily invites speculation.
Actually, the most recent quarterly report from Warner - delivered in early August - was soggy. Revenues were somewhat resilient - dropping 2 percent to $769 million on a constant currency basis, but 9 percent with currency fluctuations. Less ambiguously, total net losses widened more than fourfold to $37 million, a downturn that is happening against a continued CD plunge.
Comments Closed
OUR SPONSORS
© 2011 All Rights Reserved
Follow Us