Diamonds and Dogs
Crazy like a fox. 21st Century Fox (FOXA) is jumping 7% to new all-time highs after the courts allowed AT&T to buy Time Warner. AT&T's stock is taking a hit down 4%, but the news allows for a bidding war between Comcast and Walt Disney for 21st Century Fox which includes assets like Twentieth Century Fox TV and film studios, a controlling interest in Hulu and a 39% stake in Sky PLC. Fox shares are up 26.1% so far this year, while Comcast shares have fallen 21.3% and Disney shares have retreated 1.5%.
H&R Block (HRB) hit a wall. The tax accounting specialist is down 19% even though they beat earnings estimates and raised their dividend by 4%. On their conference call, H&R Block lowered sales guidance for the full year and lowered profit margins to 24-26% verse the 29.8% achieved this year. The company pointed to expected strategic investments in technology and operations as a cause for the decline. The company will also consolidate 400 smaller company run offices.