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Friday, November 28, 2008
Market Winners & Losers: Convergys, D.R. Horton
Joanna Ossinger
FOXBusiness
In a light volume trading session sandwiched between the Thanksgiving Day holiday and the weekend, the major indices all ended higher to mark the fifth consecutive “up” day -- the best such streak since July of last year.
Here are some of the winners and losers from the session.
Winners
Convergys (CVG)
Convergys, a human resources firm, vaulted $1.58, or 34%, to $6.29 on Friday. The company’s international business expertise could be useful in the wake of the terrorist attacks in Mumbai, India, as companies decide what to do with personnel in developing economies.
Ford Motor (F)
Ford has been asking the U.S. government for a financial helping hand, along with rivals General Motors (GM) and Chrysler. Congress is going to consider the aid package this week, and Ford’s stock rose 52 cents, or 24%, to $2.67.
General Growth Properties (GGP)
GGP, a commercial real-estate investment trust, got a boost to end the week in which it had both sold a 20% stake to Pershing Square Capital Management and faced a Friday deadline on $900 million of maturing mortgages. Its shares gained 22 cents, or 19%, to end at $1.38.
Lincoln National (LNC)
Lincoln National has been in the news a lot recently, mostly for bailout-related reasons – and this is just one more is a series of volatile moves. Shares jumped $2.15, or 19%. To $13.73.
Micron Technology (MU)
Reports surfaced that a Micron executive said the company is planning a high-end solid-state disk drive capable of 1 gigabyte/second throughput. That’s four times faster than a similar Intel (INTC) product. The market sent Micron higher by 35 cents, or 15%, to $2.74.
Losers
Chesapeake Energy (CHK)
Chesapeake tumbled $3.06, or 15%, to $17.18 after it filed an acquisition shelf to issue 50 million shares.
CB Richard Ellis (CBG)
CB Richard Ellis deals mostly with commercial realty, which a lot of investors think could follow residential real estate off a cliff. The stock fell 49 cents, or 9.7%, to $4.56.
D.R. Horton (DHI)
D.R. Horton posted pretty weak earnings earlier this week, but the markets didn’t mind so much. On Wednesday, though, Moody’s cut credit ratings on the home builder and three of its peers. Friday, DHI declined 65 cents, or 8.6%, to $6.87.
AK Steel Holding (AKS)
AK Steel recently gained state EPA approval for a coke plant in Middletown, Ohio – but steel producers overall are facing headwinds from factors such as raw-material costs and declining orders. The stock slipped 72 cents, or 8.4%, to $7.88.
Interpublic Group (IPG)
The advertising company’s shares fell 29 cents, or 6.6%, to $4.09 on Friday. Things have been tough for the entire sector as companies cut back on overall spending, and ad spending is often one of the first things to be slashed.
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It's time to let you in on a dirty little secret: You may not own the stock you own. That's right, if you invest with a brokerage firm, the shares you bought are almost certainly not held in your name. Technically, they're held in the name of the Wall Street firm you do business with, hence the term "street name."
No, you haven't been robbed. Ultimately, the decision to hold shares on the books under a different name doesn't affect the economic ramifications for you. You¿re listed as the "beneficial owner," even though the firm is the official owner of the shares. But, you are giving up some rights, and investors concerned about good corporate governance might want to get that stock back in their own names.
Here's the problem: If your stock is technically owned by, say, Merrill Lynch, then Merrill Lynch gets to do things with it that might work against your wishes. Take short selling. Investors who want to sell shares short need to first borrow those shares. The lenders are often the big Wall Street firms that are handing out Street-name shares. So, if you feel that a company you own is a victim of aggressive short selling, chances are your own shares are being used to fuel the shorting.
Also, your brokerage firm can cast ballots on some corporate matters affecting a company without getting your input. Technically, this can only happen in votes considered ¿routine¿ by securities regulators. But, there's a big catch: some big events, like board elections, are considered "routine" under law.
The good news is that you can easily fix the Street name problem: Just request that your brokerage firm makes you the listed owner of the shares. If they refuse, find a new firm.






