Digest: Upgrade lifts Time Warner
EmptyShares of Time Warner Inc. rose fractionally Monday to $20.93 after Pali Research analyst Richard Greenfield said that changes are forthcoming and upgraded the stock. Greenfield went from a "neutral" to a "buy," saying that TW might be considering several alternatives to unlock value, including buying back at least $14 billion in stock, splitting off its Time Warner Cable or AOL units, or selling its publishing segment. "The board and management have had long enough and must act over the next 12 months to radically reshape Time Warner," Greenfield wrote. He said any such measure would yield a stock price of $25 during the next year.
Mattel still coasting with 'Cars'
Mattel Inc. reported Monday a 15% increase in its second-quarter profit on global sales of Barbie dolls and Hot Wheels toy cars, though sales from lines connected with films or TV shows fell 2% in the quarter. The company did say that it continued to see strong sales from toys related to Disney/Pixar's "Cars." The toymaker posted a profit of $43.1 million compared with $37.4 million a year ago. Revenue totaled $1.02 billion, up from $957.7 million a year ago.