Gahreesen

The leading transportation service provider in the world, YRC Worldwide (YRCW - Analyst Report) received a commitment for a three-year asset-based loan (ABL) scheme worth $400 million. The introduction of this new facility will bring in fresh capital into the company and also replace the existing asset-backed securitization (ABS) facility. The deal is expected to be completed by July 22, 2011.

Earlier, in April 2011, YRC Worldwide entered into a deal with its creditors and labor union Teamsters Brotherhood to restructure its sagging finances. The lenders will inject fresh capital in return of equity capital and convertible debts. If this deal succeeds, then the lenders will gain a 72.5% equity control while the labor union will get a 25% equity control, leaving a mere 2.5% for the existing shareholders of the company. Thus, under this asset-backed securitization facility, the company will significantly dilute the wealth of the existing shareholders.

So, the introduction of this new facility will favorably position YRC Worldwide to protect its wealth. Moreover, the company has also decided to sell real estate assets worth $40 million in 2011 in order to streamline its existing debts.

Complying with its debt restructuring plans, YRC Worldwide has already divested the majority of the YRC Logistics division to a private equity firm, Austin Ventures in August 2010. So, this new asset-based loan scheme will most likely boost the company’s restructuring process as well as improve their liquidity position.

During the last two and half years, YRC Worldwide has been reeling under the threat of bankruptcy resulting from a significant fall in freight volume coupled with its highly leveraged balance sheet. Although the U.S. trucking industry is recovering from the slowdown, YRC Worldwide fails to cope with this current recovery. Currently, the company is also facing intense competition from Arkansas Best Corporation (ABFS - Snapshot Report), Heartland Express, Inc. (HTLD - Snapshot Report) and Knight Transportation Inc. (KNX - Snapshot Report).

We, thus, maintain our long-term Neutral recommendation for YRC Worldwide. Currently, YRC Worldwide has a Zacks#4 Rank, implying a short-term Sell rating on the stock.

Read the full analyst report on YRCW

Read the full analyst report on ABFS

Read the full analyst report on KNX

Read the full analyst report on HTLD

We are downgrading our recommendation on Montpelier Re Holdings Ltd. (MRH - Analyst Report) to Underperform from Neutral given its exposure to catastrophe losses coupled with the current pricing environment in the primary insurance market and the stressed economy that is expected to restrict top-line growth.

Montpelier has substantial exposure to losses resulting from natural and man-made disasters and other catastrophic events, leading it to report an  operating loss in the first quarter. The last quarter suffered largely owing to huge catastrophe losses coupled with a significant increase in expenses as well as lower investment income.

Montpelier guided second quarter catastrophe losses from severe flood, hail, tornado and wind events in the United States to $35 million, pre-tax and net of reinsurance recoveries and reinstatement premiums. However, Montpelier does not anticipate any losses from the New Zealand earthquake that occurred in June.

Montpelier is experiencing a weakness in its commercial property book. Looking forward, Montpelier expects continued lower net premium written attributable to the lower percentage of property CAT premium renewing in the forthcoming quarters and timing differences associated with ceded reinsurance premiums.

Counting on the positives, Montpelier continues to benefit from its transition from a Bermuda “monoline” property catastrophe reinsurer to a diversified global reinsurer, positive ratings from the credit rating agency as well as share buybacks.

The Zacks Consensus Estimate for second-quarter 2011 is 56 cents per share. For full years 2011 and 2012, the Zacks Consensus Estimates are respectively, loss of 22 cents and earnings of $2.34 per share.

The quantitative Zacks #5 Rank (short-term Strong Sell rating) for the company indicates downward pressure on the stock over the near term.

Headquartered in Pembroke, Bermuda, Montpelier, through its subsidiaries in the U.S., the U.K. and Switzerland, provides customized and innovative reinsurance and insurance solutions to the global market. It competes with RenaissanceRe Holdings Ltd. (RNR - Analyst Report), Flagstone Reinsurance Holdings SA (FSR - Snapshot Report) and Validus Holdings Ltd.(VR - Snapshot Report).

Read the full analyst report on RNR

Read the full analyst report on MRH

Read the full analyst report on VR

Read the full analyst report on FSR

Potters in La Jolla are conducting their Four Woman Show.  Uniquely crafted pottery designs are the creations of four California gals: Lisa Maher, Janet Martini, Julie Thompson, and Roberta Klein.

The exhibition place is the front yard of one of the artists, not far from the center of La Jolla Village, better known as The Jewel of the Calfornia Coast. They are one block west of the La Jolla Farmers' Market.  From Highway 5, take La Jolla Parkway to Torrey Pines Road.  Go left then left on Girard, right on Pearl, left on Fay Avenue. 

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By Greg Peel

The Dow closed down 58 points or 0.5% while the S&P lost 0.4% to 1313 and the Nasdaq fell 0.7%.

European bond markets opened last night in the same mood as they closed on Monday ? one of abandoning southern eurozone debt in exchange for northern eurozone and US debt. The yield on the US ten-year bond had fallen another 12 basis points to 2.80% before markets opened in New York and Chicago. It seemed a slippery slope to hell.

EU officials and eurozone finance ministers meeting in Brussels then released a statement suggesting they are ready to adopt further measures to ensure Greece's sovereign debt crisis does not spread to other parts of the EU. This would involve more flexible facilities, lower interest rates, maturity extensions etc, etc.

The BAFTA Brits to Watch event took place this evening at the Belasco Theatre in Downtown Los Angeles.

Hollywood elite took their places on the red carpet prior to the arrival of the Duke and Duchess of Cambridge. America loves the royals and tonight it really showed. The Who's Who list included JLo, Nicole Kidman, Kristin Chenoweth, Dana Delaney, Blake Lively, Elizabeth Banks and many more.

The clothing on the stars was amazing. Nicole Kidman wore a plunging grey beaded Elie Saab dress with a back cowl neckline and super high leg slit. Dana Delaney chose a strapless metallic design by Prada, while Blake Lively in Marchesa looked gorgeous in a one-shoulder sheer silver dress with nude heels. JLo wore a deep green dress with multiple cutouts. One long sleeve was jeweled and the other solid. Elizabeth Banks wore a white one shoulder gown with gold details and a deep leg slit. Zooey Dechanel wore a metallic Oscar de la Renta 1950s inspired dress. Kristin Chenoweth selected a BCBG by Max Azria black and gold strapless gown.

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The minutes from the FOMC meeting revealed that, despite the slowdown in economic growth, there was still little interest among Fed officials for a third round of quantitative easing - at least not in the short term. According to the minutes only ´´some participants´´ thought it would be appropriate to provide additional stimulus in the medium term if the unemployment rate remained elevated. However members spent most of the meeting firming up their exit strategy for normalising monetary policy.

The US trade deficit widened from $43.6 billion to $50.2 billion in May - the highest since October 2008. Imports rose by 2.6pct driven by surge in capital goods, and a jump in the oil price. Exports slipped by 0.5pct in May.

European shares fell for the third straight session on Tuesday hitting a four month low. EU minister did pledge that there would provide more flexibility for rescue funds, and are expected to agree on cheaper longer term loans to support Italy and Spain. Italian banks did rebounded gaining 5-8pct. The FTSEurofirst index fell by 0.5pct, with the German Dax lower by 0.8pct and the UK FTSE down by 1pct.

US sharemarkets closed lower on Tuesday as the European debt crisis weighed on sentiment. However equities did bounce briefly after the release of the Fed minutes, which hinted at the possibility of more stimulus. The Dow Jones fell by 59pts or 0.5pct, the S&P 500 lost 0.4pct and the Nasdaq fell 20pts or 0.7pct.

US long-dated treasuries rallied on Tuesday (yields lower) as ongoing concerns about sovereign debt issues in the euro zone prompted safe-haven buying. US 2yr yields were flat at 0.36pct and US 10yr yields fell by 4pts to 2.88pct.

The Euro rallied off four-month lows against the US dollar following the release of the FOMC minutes - which left the door open for further stimulus. The Euro hit early lows near US$1.3840 before rallying to US$1.4040, ending US trade at US$1.3970. The Aussie dollar touched early lows near US105.25c before rallying to highs near US106.40c and ending US trade near US$105.95. And the Japanese yen strengthened from 80.15 yen per US dollar to JPY79.20, and ended US trade near JPY79.40.

US crude oil prices rallied on Tuesday as the weaker US dollar supported oil demand. Nymex crude oil rose by US$2.28 to US$97.43 a barrel and London Brent crude rose by US51c to US$117.75 a barrel.

Base metal prices rallied after two prior sessions of losses on the London Metal Exchange, though volumes were light. Metals gained between 0.6-2.2pct. And the gold price rose with Comex gold up by US$18.20 an ounce or 1.2pct to US$1,567.90.

Ahead: In Australia, consumer sentiment and lending finance are released In the US, import price figures are released. Chinese GDP, retail sales and industrial production are released.

Catherine, Duchess of Cambridge, arrived on the red carpet last night at the BAFTA Brits to Watch gala event wearing a sparkling champagne Jimmy Choo Ubai evening clutch. The Jimmy Choo Ubai evening clutch was the perfect handbag for the former Kate Middleton’s ensemble, which featured an Alexander McQueen flowing gown and Jimmy Choo high heels. The event showcased emerging talent in the film, television and video games industries from the United Kingdom.

Tim Corrie, BAFTA Chairman: “We are incredibly excited by the prospect of bringing some of the most talented emerging Brits in film, television and video games to the attention of arguably the most important people in the moving image industries today. We hope this will be only the first of a number of amazing opportunities for us to champion our very finest on-screen talent and behind-the-camera practitioners to the leading names in California.”

The BAFTA Brits to Watch event attracted a bevy of celebrities such as Jennifer Lopez, Nicole Kidman, Tom Hanks and Mary Louise Parker, who were able to meet the fashionable and glowing Royal couple. Guests were treated to an elegant dinner and chance to meet Prince William and Catherine, Duchess of Cambridge. The Royal couple had the opportunity to review the work of the showcased artists throughout the evening and meet the emerging talent behind the showcased work.

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International Paper Co. (IP - Analyst Report) has taken its $3.3 billion or $30.60 per share cash tender offer of all outstanding shares of its competitor Temple-Inland Inc. (TIN - Snapshot Report) to the latter’s shareholders. The proposal will expire on August 9, 2011.

Temple-Inland's board of directors will review the offer to determine the course of action that it believes is in the best interest of the company and its stockholders. The company’s shareholders have been advised to refrain from any action at this time pending conclusion of the review of the tender offer by Temple-Inland's board.

International Paper’s offer price of $30.60 is 46% more than Temple-Inland’s share price of $21.01 at noon June 6, 2011. International Paper had initially communicated its proposal on May 17, 2011.

On June 4, 2011, International Paper was informed in a letter from Temple-Inland's chairman stating that its board has unanimously rejected International Paper's proposal. Temple-Inland said the offer grossly undervalues its business and is not in the best interest of its shareholders.

The Temple-Inland board asserted that their company has consistently delivered superior results for its stockholders compared with corrugated packaging peers, (even including International Paper), building products peers, and the S&P 500.

Temple-Inland’s total returns to its stockholders of 22% far exceeded International Paper’s 5% return. Through its proven ability to maximize the return on investment (ROI) and profitably growing the business, the board seemed confident that Temple-Inland will continue to provide superior results for its stockholders. In response, International Paper had sent a letter to Temple-Inland expressing its continued interest in pursuing the acquisition.

To prevent the takeover, Temple-Inland adopted a stockholder rights plan and declared dividend distribution of preferred share purchase rights on each outstanding share of Temple-Inland common stock.

The takeover, on consummation, would be International Paper’s largest since its August 2008 acquisition of  Weyerhaeuser Co.’s (WY - Analyst Report) corrugated-packaging business for $6 billion. International Paper is seeing a rebound in demand and prices of its corrugated packaging and office paper business in North America after  suffering a collapse during the financial crisis.

The deal will further improve the business through integration, rationalization and optimization. The combination would increase International Paper’s share of the North American corrugated-packaging market to about 40% from roughly 27% at present. It would also enable the company to implement cost cuts at its corrugated-packaging business and increase the overall bottom line in the very first year.

We expect International Paper to continue utilizing its sound cash flow by investing in capital projects, indulging in acquisitions and reducing total debt. We nevertheless await further developments on the Temple-Inland event. The company currently retains a Zacks #4 Rank (short-term Sell recommendation).

Memphis, Tennessee-based International Paper Company is a global paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia and North Africa. International Paper conducts its businesses through five segments: Printing Papers, Industrial Packaging, Consumer Packaging, Distribution (Xpedx) and Forest Products. International Paper also competes with MeadWestvaco Corporation (MWV - Analyst Report) and Weyerhaeuser.

Read the full analyst report on IP

Read the full analyst report on MWV

Read the full analyst report on WY

Read the full analyst report on TIN

Summertime is when girl talk turns to fitness, hair highlights and managing frizz, skincare, and of course...swimwear.  Women (and men) obsess over which swimsuits are designed to fit their body type, should we don a bikini or a one-piece, or the age old question..."Is this really appropriate to wear to my brother's annual pool party"?  Today, we are talking iconic swimsuits.  What do you remember most about the Bond film "Die Another Day"?   Most likely it was Halle Berry wearing an orange belted bikini emerging divalicious from the ocean.  

From the late Farrah Fawcett's dynamic red one piece that now belongs to the Smithsonian to Pamela Anderson's "Baywatch" suit seen thousands of times in slomo...some stars and their swimwear are unforgettable.  Who doesn't remember Bo Derek, Racquel Welch, and Pam Grier and the suits those ladies made famous?  Let's not forget the models and their famed suits.  Tyra Banks and Elle MacPherson made Sport Illustrated bikini history with covers that were hung on walls all over America.    

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Today is the second anniversary of the government bailout of Lloyds Banking Group, which took over HBOS, the group formed from the merger of Halifax and Bank of Scotland in 2001.

Lloyds currently has around 2.8m retail shareholders, most of whom were among the 7.6m who received free shares in the demutualisation of the former Halifax building society.

The calculation assumes shareholders took up an emergency rights issue in the spring of 2008 and that they received a special dividend in 1999.

City research firm H20 markets calculates that an investor putting £1,000 into Lloyds before the crunch at the start of 2007 would have seen their shares collapse to £86.40.

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