Wednesday, January 17, 2007

Paperstand (CVC, HANS, WSO)

The WSJ reports that a special committee of Cablevision's (CVC) board last night rejected the Dolans' $30-a-share offer as "inadequate" given the value of its cable system, which serves 3M customers mostly living in affluent environs of the NYC region. The rejection marked the 2nd time in less than 2 years that the Dolans failed to take Cablevision private despite their controlling interest, 70.4% of the voting shares.

According to the Barron’s Online, investors in Hansen (HANS) turned fickle toward the No. 2 energy-drink co in last year's 2H. But new growth initiatives could put some fizz back into the shares in ‘07. Although the stock has bounced back somewhat, there is still upside potential of at least 20%, as Hansen starts to reap the benefits of a deal under which brewer Anheuser_Busch (BUD) will distribute its Monster Energy Drink, potentially providing deeper mkt penetration. Hansen also should benefit from new-product introductions, following a pause in its pipeline last year. In addition, the co is likely to emulate energy-drink leader Red Bull's recent decision to boost prices. Les Engebretson, of Engebretson Capital Mgmt, started buying Hansen stock in early ‘04 and says the popularity of the beverage maker's energy drinks isn't a fad. "They have been able to take mkt share away from the others pretty consistently," he says, adding that the Anheuser arrangement represents "a major shift" in marketing. He expects earnings to grow another 35-40% in ‘07. Some speculate that the Anheuser relationship could ultimately lead to bid for the Hansen.

“Inside Scoop” section reports that a hedge fund, Basswood Capital Mgmt, has warmed up to shares of Watsco (WSO), claiming a 5.5% stake in the co. Basswood disclosed ownership of 1.3M Watsco shares on Jan. 11.

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