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By Jason Stipp | 07-16-2010 02:00 AM

What's Revving Up in the Market?

Morningstar markets editor Jeremy Glaser on LBOs, Intel's earnings, and a new recipe for fast food sales growth.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to the Friday Five. With earning season gearing up, Morningstar markets editor Jeremy Glaser is here to tell me which stories out there in the market are revving up. Thanks for joining me Jeremy.

Jeremy Glaser: You're welcome Jason.

Stipp: So what do you have for the Friday Five this week?

Glaser: We have got to see if we have revving up in LBOs, the business PC replacement cycle, China growth, financial reform and finally at Yum Brands.

Stipp: So the Playboy story was in the news this week, and there was Hugh Hefner maybe getting a little bit more hands on with the magazine. Can you tell me a little bit about what the implications of that are as far as the business transaction?

Glaser: Hugh Hefner already owns a majority of shares, a majority of voting interest in Playboy, but he decided that he wanted to take it private. I think he is kind of sick of dealing with the public spotlight of a declining stock price. But I think that what's more interesting than this actual transaction is whether it forebodes more LBOs coming down the pipe.

I think certainly there is a lot of managers who probably think that their stocks are very undervalued and, also financing is again a little bit easier to find. So with the combination of those two things, I think it's possible that we could see a revving up in the LBO market.

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