Tag Archive | "12 months"

Synthes Confirmed Johnson & Johnson Bargain to Purchase its Company

Synthes Inc. has confirmed Tuesday that it is in negotiations with Johnson & Johnson for its possible takeover. The alleged agreement is rumored worth nearly $20 billion, probably the largest deal J&J will commit in its history.

However, Synthes refuses to provide additional information until a precise agreement has been reached or negotiations have been closed with the American pharmaceutical and medical devices manufacturer, the company said on Monday.

Johnson & Johnson, which was involved in a legal suit in 2010, is still gaining confidence after more than 50 of its products were pulled off in the market. Because of that, some believes J&J might face some problems on how they can prove to some investors that they are already capable of managing big acquisitions.

There have been several months of speculations regarding J&J’s talks with British device manufacturer, Smith & Nephew. On Monday, Smith & Nephew’s stock dropped 3 percent in London trading, the company’s largest one-day decline for three months.

Speculations will end once the $20 billion agreement pursues between J&J and Synthes, the largest manufacturer of devices used to treat trauma, as well as bone fractures.

Synthes is expected to provide New Jersey-based Johnson & Johnson a line of surgical power tools, hip scews and equipment used to treat soft-tisse and spinal injuries. This will certainly boost the American company’s shares in the trauma care market.

Johnson & Johnson refused to comment about the negotiations. J&J’s stock stock, which has dropped 7 percent in the past 12 months, fell 10 cents to $60.46 in New York.

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Credit Card Balance Transfers Fighting it out in February

Credt Card Balance Transfers Fight it out in FebruaryFebruary is proving to be possibly one of the best months of 2011 for balance transfers. This is because Discover is offering two limited time promotions for the month of February. The first offer, which is a no balance transfer fee card, is 0% interest for 12 months on balance transfers and purchases. This is probably one of the best deal for consumers and many are taking advantage.

Discover is also offering a 24-month interest free balance transfer. This card, however, requires a 5% balance transfer fee. This may be the best option for consumers who will require more time to pay off their balances.

Consumers can get 0% interest for 18 months with a 3% balance transfer fee by using the Cit Platinum Select Card.

Many credit card companies, including Bank of America, are making competition fierce. However, Discover’s two limited time offers, which expire in February, are the main reason the balance transfer market is so strong for the month of February. If you were to take the offers from Discover and Citibank out of the equation, you would see that the overall market for balance transfers is surprisingly weak. This is because the average balance transfer deal is only 9 months long which doesn’t give consumers the confidence that they can pay their balances within that time frame.

The Chase Slate credit card offers great balance transfer terms, up to 18 months. However, consumers with less than perfect credit may only be offered 6 months to pay their balances. Those with perfect credit can expect the appealing 18 month terms.

Other banks such as Bank of America, Wells Fargo and U.S. Bank also offer balance transfer deals. However, these are usually unpopular due to the short terms, some lasting only 9 months to pay balance transfers. Transfer fees are also relatively high for these banks making these offers less appealing to consumers.

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UPS Forecasts High Profits in 2011

United Parcel Service reported a quarterly profit that beat the estimates of analysts, increasing their shares by more than 4 percent. The largest package delivery company in the world predicts record-high profits in 2011.

Analysts said that there were several factors that are driving the company’s performance. These include price increases last year and early this year, the increasing volume as the economy recovers, and the use of technology that has improved productivity.

UPS manages goods equal to 6 percent of the gross domestic product (GDP) in United States and 2 percent of the GDP in the entire world in its planes and trucks. Its shipment trends provide a concrete picture of consumer demand, the company said.

According to Chief Financial Officer Kurt Kuehn in an interview, UPS is walking out of recession stronger and nimbler than ever. Their company is a little more optimistic on the U.S. economy, but global growth will be more patterned.

UPS calls for moderate global growth in 2011. It said they controlled costs as compensations and benefit expenses increased less than volume.

Sterne Agee foresees UPS shares increasing to $100 on the following 12 months. It cited the company’s capability to recapture costs by elevating prices and internal controls.

The shares of the company were up 4.3 percent or $3.08 at $74.74 in the afternoon trading. Its shares last attained $75 in December 2007, a UPS spokesman informed.

BB&T analyst Kevin Sterling said UPS already thinks they can exceed peak earnings in less than two years from the start of the recession.

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