Review & Preview
Big Bills: Gemstar-TV Guide International Chief Executive Henry Yuen took out a loan secured by 7 million shares of company stock to pay back personal debts and taxes. In a press release, the company said “the transactions will allow Mr. Yuen to repay debt previously incurred to exercise and pay taxes on options to acquire company stock and for certain other personal obligations.”
Digital Deal: Several Hollywood studios plan to work together to develop technology standards for digital movies that would reduce distribution costs. The studios will fund the research and testing of technology and equipment to assure that competing digital-projection systems are compatible. The studios are Warner Bros., Universal, Disney, Paramount, Fox, Sony and MGM. Digital technology can reduce costs by eliminating the need to print, ship and store film reels.
Big Loss: Homestore.com Inc. reported a $1.5 billion loss for 2001, compared with a loss of $146 million from the year before. Much of the Westlake Village-based company’s loss is tied to a $960 million fourth quarter charge to reflect, among other things, the declining value of acquisitions that include Cendant Corp.’s Movie.com Internet unit. Homestore.com, which is the biggest home listing Web site, has seen its stock plummet by 94 percent since last summer, as the company investigates its accounting practices.
Big Gain: Tenet Healthcare Corp., the nation’s second-largest hospital chain, beat analysts expectations in reporting third quarter net income of $288 million, or 86 cents a share, compared with $198 million for the like period a year earlier. The Santa Barbara-based company has attracted patients by investing in profitable services like cardiology that are in demand as the U.S. population ages. The company has also cut expenses and raised managed care contracts.
Tech Slump: Shares of Monrovia-based SeeBeyond Technology Corp. fell on word that the company plans to report first quarter revenue of around $42 million, compared with the $44.5 million average forecast of analysts polled by Thomson Financial/First Call. SeeBeyond, which makes software used to link computer systems, cited slower spending by technology companies for the results.
New Prosecutor: As expected, Superior Court Judge Debra Yang has been nominated by President Bush to become U.S. Attorney in Los Angeles, a post that has been vacant for almost a year. Yang would become the first Asian-American to head what is the largest federal prosecutor’s office outside Washington. A quick Senate confirmation is expected.
Secession Update: A study by state Controller Kathleen Connell’s office concluded that an independent San Fernando Valley would be obligated to pay the city of Los Angeles about $61 million annually not the $300 million estimate made by L.A. officials. The new figure is considered a victory for secession advocates who are trying to place the question on November’s ballot. Connell’s study, however, concluded that the Harbor area, where local leaders also are trying to secede, could not survive as an independent entity.
Middle East Worries: Oil prices kept creeping towards the $30 a barrel level last week in response to fears that the Israeli-Palestinian conflict will spread throughout the Middle East and potentially shut off the flow of oil from the region. The oil price hike already has caused higher gasoline pump prices and some economists were expressing concern that the nascent economic recovery could be impacted.
PREVIEW
Chick’s Back: The one and only Chick Hearn was still scheduled to return to the microphone on Tuesday (9th) as the Lakers take on the Utah Jazz. The 85-year-old Hearn was recovering from heart surgery for several weeks when he took a fall at a gasoline station and required a hip replacement.
Fore: This is the week of the Masters at Augusta, Ga., the first of golf’s four major tournaments. Special attention will be paid to this year’s championship because the revered Augusta National golf course has been significantly lengthened to provide more challenges for the sport’s long hitters, like Tiger Woods.
Alameda Corridor: The trains begin rolling down the track on Friday (12th) as the $2.4 billion, 20-mile Alameda Corridor connects the ports of Los Angeles and Long Beach with transcontinental rail yards near downtown Los Angeles. The corridor, anchored by a trench 10 miles long and 33 feet deep, is expected to speed up freight traffic and ease auto congestion that had been created by slow-moving trains.
British View: Bill Emmott, editor of The Economist, will be the featured speaker Thursday at the Town Hall Los Angeles luncheon at the Beverly Hilton hotel. Emmott will examine the role of the United States in the post-9-11 world. Tickets are $55. Call (213) 628-8141.
L.A. Jobs: March’s state and county employment report is due out by the California Employment Development Department. L.A. County unemployment dipped to 6.4 percent in February from 6.8 percent the month before, though economists still expect plenty of fluctuations up and down over the next few months.
Town Talk: Michael Eskew, the chief executive of United Parcel Service, speaks to a luncheon session of Town Hall Los Angeles on Wednesday (10th) at the Omni Los Angeles Hotel.
Bank on It: East West Bancorp leads the charge on first quarter earnings reports, with numbers due out Thursday (11th). Analyst estimates are for earnings per share of 41 cents, compared to 41 cents for the like-year earlier quarter.
South Bay Politics: Long Beach voters go to the polls Tuesday (9th) for municipal elections. Mayor Beverly O’Neill is trying to buck term limits as a write-in candidate against Vice Mayor Dan Baker and Councilman Ray Grabinski.
