Market Analysis: June 27, 2006

Strategic Insights

Jun 26, 2006 — 1 min read

Cincinnati-based Schaeffer's Investment Research issued a daily market commentary on June 27, 2006, analyzing various stocks, including Marvell Technology (MRVL), Intel (INTC), General Motors (GM), Nortel Networks (NT), and Take-Two Interactive Software (TTWO). The commentary highlighted significant market activity, technical analysis, and corporate announcements.

Key Takeaways:

Marvell Technology agreed to acquire Intel's communications and applications processor business for $600 million, with the deal expected to close in four to five months. MRVL's stock retreated over 11% in response.
General Motors announced that 35,000 employees have opted to leave the company, exceeding the automaker's original target, which will enable GM to increase its targeted savings to $8 billion annually by the end of 2006.
Nortel Networks outlined a restructuring plan, including the elimination of 1,900 positions globally, and changes to its North American pension programs, targeting expansion of operating margins by more than $1.5 billion in 2008.
Take-Two Interactive Software dropped nearly 18% due to two subpoenas from a New York grand jury investigating the company's disclosure of hidden scenes in its Grand Theft Auto: San Andreas video game.
Citigroup downgraded Take-Two Interactive Software to "sell" with a price target of $9, citing higher legal fees, lower game profits, and potential future game delays.

Statistics:

Marvell Technology's stock price decreased by over 11% in a single day.
General Motors expects to save $8 billion annually by the end of 2006.
Nortel Networks plans to eliminate 1,900 positions globally.
Take-Two Interactive Software's stock price dropped by nearly 18% due to subpoena news.

Sources:

Announcement of Marvell Technology acquiring Intel's communications and applications processor business: K.K.
General Motors' announcement of 35,000 employees opting to leave the company: The New York Times
Nortel Networks' restructuring plan: Company press release
Take-Two Interactive Software's subpoena news: Bloomberg L.P.

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