Home / Markets / Market Overview
Monday, January 05, 2009
Market Winners & Losers: Lennar, Interpublic Group
David O'Brien
FOXBusiness
On the first “back-to-business” trading day of the New Year, the major indices saw small losses across the board while news of President-elect Obama’s tax and infrastructure plans continue to come out.
Here are some of Monday’s winners and losers:
Winners
American Capital Ltd. (ACAS)
The stock made a major rebound after touching its 52-week low last week. Shares gained $1.52, or 41.3%, on Monday, closing at $5.20.
Micron Technology Inc. (MU)
A subsidiary, Aptina Imaging Corporation, received a mobile phone software business from Shanghai-based Chipnuts Technology Inc. This helped the stock have one of its biggest days in recent months, gaining 48 cents, or nearly 17% to $3.32.
Advanced Micro Devices Inc. (AMD)
A slew of new technology helped boost the stock 29 cents, or more than 12%, on the day to close at $2.67.
Lennar Corp (LEN)
With President-elect Obama ever more certain about his infrastructure project, the homebuilder saw shares rise 11%, or $1.02 a share, to start the week. It closed the day at $10.02.
Teradyne Inc. (TER)
After receiving an upgrade from Barclays Capital, the stock saw a jump of 50 cents, or nearly 11%, to finish at $5.17.
Losers
IntercontinentalExchange Inc. (ICE)
ICE was hurt Monday by energy stocks, despite the overall gain in the past year by the exchange. It finished the day down $11.57 a share, or nearly 14%, closing at $73.
Tenet Healthcare Corp (THC)
Even the news that one of THC’s biggest critics was dissolving its group could not help the health-care services company. The stock fell 13%, or losing 17 cents, to close at $1.10.
LSI Corp. (LSI)
The semiconductor maker continues to have a roller-coaster ride, crashing late Monday to end down 30 cents, or 8.4%, to $3.27.
Interpublic Group of Cos. (IPG)
Advertising may not be the best business to be in during a recession, as the company still floats barely above its 52-week low. The stock knocked off 34 cents, or about 8%, on the day, closing at $3.94.
Comerica Inc. (CMA)
CMA lost ground along with a number of financial stocks after Deutsche Bank analyst Mike Mayo said he expects worsening economic trends to pressure bank balance sheets this year. The regional bank fell $1.53, or 7.3%, closing at $19.42 after a late-afternoon selloff.
FOX Translator
No data currently available.
No data currently available.
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.
