TraderPlanet Market News
Stocks To Watch For February 7
Some of the stocks that may grab investor focus today are:NCR Corp (NYSE: NCR) reported its Q4 earnings at $0.65 per share, excluding items, on revenue of $1.64 billion. However, analysts were expecting earnings of $0.57 per share on revenue of $1.59 billion. NCR shares surged 8.25% to $20.60 in after-hours trading. Wall Street expects Coca-Cola Company (NYSE: KO) to report its Q4 earnings at $0.78 per share on revenue of $11 billion. KO shares rose 0.51% to $68.38 in after-hours trading.Coinstar Inc (NASDAQ: CSTR) reported its Q4 earnings from continuing operations at $31.5 million, or $1 per share, up from $11.7 million, or $0.68 per share, in the year-ago period. Its revenue surged to $520.5 million from $390.8 million. However, analysts were expecting earnings of $0.65 per share on $498.3 million in sales. Coinstar announced its plans to buy NCR Corp's DVD rental kiosks and other entertainment assets for up to $100 million.Coinstar shares jumped 16.89% to $59.10 in the after-hours trading session.Yum! Brands Inc (NYSE: YUM) reported a 30% surge in its fourth-quarter profit. YUM shares gained 2.23% to $64.60 in the after-hours trading session. Analysts expect Emerson Electric Co (NYSE: EMR) to post its Q1 EPS at $0.51 on revenue of $5.28 billion. EMR shares dropped 0.07% to $53.33 in after-hours trading.
Benzinga's Microcap Movers for Monday February 6, 2012
Below are highlights from 's daily coverage of microcap securities making big moves:Cyclacel PharmaceuticalsShares of Cyclacel Pharmaceuticals (NASDAQ: CYCC), the Berkeley Heights, NJ biotechnology company, rose 14% Monday on 3 times the average daily volume.Cyclacel announced Monday that Spiro Rombotis, President and Chief Executive Officer, will present an update on the Company's programs at two upcoming conferences in New York:14th Annual BIO CEO & Investor Conference, Monday, February 13, 2012 at 10:00 AM ET.Leerink Swann 2012 Global Healthcare Conference, Thursday, February 16, 2012 at 4:00 PM ET.Cyclacel Pharmaceuticals closed at $0.66 on Monday.North Springs ResourcesShares of North Springs Resources (NSRS), the Reno, NV developer of mineral resource properties, rose 29% Monday on almost twice the average daily volume.North Springs Resources announced Monday that it has received initial sampling results from phase one exploration conducted at the Imperial Gold Silver Property, located about 13 miles south of South Peak, Nevada, in the Railroad Springs Mining District. Initial results include gold assays from underground workings and one geochemical target. Geochemical analysis was conducted by ALS Chemex, an independent third-party laboratory in Reno, Nevada. Additional test results for silver content are expected to be received later this week.North Springs Resources closed at $1.49 on Monday.Cybex InternationalShares of Cybex International (NASDAQ: CYBI), the Medway, MA manufacturer of cardiovascular fitness equipment, rose 116% Monday on 13 times the average daily volume.Cybex International announced Wednesday that it had reached a settlement in the product liability litigation, Barnhard v. Cybex International. Pursuant to the settlement, Cybex will pay to the plaintiff, net of insurance, approximately $19,500,000, of which approximately $18,500,000 will be paid at the consummation of the settlement with the balance paid over seven years. As part of the settlement, Cybex will be released of all further liability with respect to the litigation, which will be dismissed with prejudice. Cybex will satisfy its cash obligation through available cash, its existing line of credit and additional financing, which it is in the process of arranging with its principal bank.Cybex International closed at $1.19 on Monday.
ETFs to Watch February 7, 2012
Here is the ETF Professor's ETF Watch List for Tuesday February 7, 2012.The PowerShares Dynamic Media ETF (NYSE: PBS) is looking strong.Keep an eye on the Global X FTSE Greece 20 ETF (NYSE: GREK).Trade the First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG).The Guggenheim Solar ETF (NYSE: TAN) is back above 3%.Emerging markets plays of the day: Market Vectors Indonesia ETF (NYSE: EEV).Forex play of the day: ProShares UltraShort Euro (NYSE: EUO).Bond play of the day: iShares S&P National AMT-Free Muni Bond ETF (NYSE: MUB).Follow the ETF Professor on Twitter: twitter.com/etfprofessor1
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Benzinga's M&A Chatter for Monday February 6, 2012
The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday February 6, 2012:Fidelity National Financial Announces Agreement to Acquire O'Charley's for $9.85 per Share in CashThe Deal: Fidelity National Financial, Inc. (NYSE: CHUX) that it does not currently own for $9.85 per share in cash. FNF currently owns 2,079,542, or 9.5%, of the outstanding shares of common stock of O'Charley's, which operates more than 340 full-service restaurants under the O'Charley's, Ninety Nine and Stoney River concepts.Under the terms of the definitive agreement, FNF intends to commence a tender offer for all of the outstanding shares of common stock of O'Charley's that it does not currently own on or about February 24, 2012. The initial tender is expected to expire on April 2, 2012, and to close shortly thereafter, assuming that shares that, combined with FNF's existing 9.5% ownership stake, represent more than a majority of the outstanding shares of O'Charley's are properly tendered and not withdrawn. Closing of the tender is also contingent on customary closing conditions, including the expiration of the HSR waiting period. The back-end, cash-out merger under Tennessee law is expected to take place no earlier than May 2, 2012, and is also subject to customary closing conditions, including the successful completion of the tender offer. O'Charley's closed at $9.81 Monday, a gain of 41.76% for the day on 200 times the average daily volume.Rambus Acquires Unity SemiconductorThe Deal:Rambus (NASDAQ: RMBS) announced Monday it has acquired privately-held Unity Semiconductor for an aggregate of $35 million in cash. As part of this acquisition, the Unity team members have joined Rambus to continue developing innovations and solutions for next-generation non-volatile memory. This acquisition will expand the breadth of Rambus' breakthrough memory technologies and will open up new markets for licensing. The boards of directors of both companies have approved the acquisition and it has closed.Rambus shares closed at $7.54 Monday, a loss of 0.26% for the day on one-third the average daily volume.Alleghany Corporation Stockholders Approve Combination With TransatlanticThe Deal:Alleghany Corporation (NYSE: TRH), into Shoreline Merger Sub, a wholly-owned subsidiary of Alleghany, pursuant to the merger agreement, dated as of November 20, 2011, between Alleghany and Transatlantic. In addition, Transatlantic's stockholders have voted to approve and adopt the merger agreement.The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the first quarter of 2012.Alleghany closed at $302.25 Monday, a loss of 0.42% for the day on 3 times the average daily volume.FTC May Block Express Scripts Merger with MedcoHealth SolutionsThe Rumor:The Federal Trade Commission may seek to block the merger of Express Scripts (NASDAQ: MHS), according to Reuters. The Food Marketing Institute, which represents grocery chains, asked the FTC to prevent the merger. Both stocks plunged on the report, before recovering about half their losses.Spokepersons for both Express Scripts and MedcoHealth told they still expect the merger to close in the first half of 2012.Express Scripts closed at $49.67 Monday, a loss of 4.64% for the day on 5.5 times the average daily volume.MedcoHealth Solutions closed at $58.47 Monday, a loss of 8.08% for the day on 7.6 times the average daily volume.Kroger Cheap Acquisition TargetThe Rumor:Kroger (NYSE: KR) is a cheap takeover target, cheaper than 99% of the S&P 500, according to Bloomberg. A European buyer may consider a Kroger acquisition.A spokesperson for Kroger could not be reached for comment.Kroger closed at $24.06 Monday, a gain of 0.59% for the day on 1.4 times the average volume.Baidu to Partner with or Acquire RenrenThe Rumor:Baidu (NASDAQ: RENN), according to sources. The rumored appeared over the weekend .Interest in Renren has intensified over the past week, after the announcement of Facebook's IPO filing.RenRen closed at $4.92 Monday, a loss of 5.75% for the day on more than twice the average volume.Verizon Rumored Buyer of Cablevision SystemsThe Rumor:Verizon (NYSE: CVC), according to sources. The Dolan family in the past has considered taking Cablevision private.A spokesperson for Verizon had no comment for . A Cablevision spokesperson could not be reached for comment.Cablevision Systems closed at $14.91 Monday, a gain of 2.69% for the day on slightly more than average volume.Merck Rumored Buyer of Idenix PharmaceuticalsThe Rumor:Merck (NYSE: IDIX) for $24 per share, according to sources. The same rumor was reported by on January 25.A spokesperson for Idenix had no comment. A Merck spokesperson could not be reached for comment.Idenix closed at $12.05 Monday, a gain of 3.17% for the day on 1.5 times the average volume.TPG Capital Rumored Buyer of MEMC Electronic MaterialsThe Rumor:Private equity firm TPG Capital is rumored to be offering $9.25 per share for MEMC Electronic Materials (NYSE: WFR), according to sources. A spokesperson for MEMC could not be reached for comment.MEMC Electronic Materials closed at $5.27 Monday, a gain of 1.54% for the day on average volume.Singapore Pension Fund Rumored Buyer of Starwood HotelsThe Rumor:Singapore pension fund is rumored to be offering $65 to $70 per share for Starwood Hotels (NYSE: HOT), according to sources. A spokesperson for Starwood Hotels had not heard the rumor and had no comment.Starwood Hotels closed at $57.29 Monday, a gain of 1% for the day on 1.4 times the average daily volume.Hearing Private Equity Chatter in Badge MeterThe Rumor:A private equity firm may be looking to acquire Badge Meter (NYSE: BMI), according to sources. A spokesperson for Badge Meter could not be reached for comment.Badge Meter closed at $34.01 Monday, a loss of 1.51% for the day on twice the average daily volume.Hearing Takeover Chatter in Noble CorpThe Rumor:Hearing Noble Corp (NYSE: NE) cancelled out of the Vail Energy Conference, according to sources. This rumor led to takeover chatter.A spokesperson for Noble told they were not aware the company had plans to attend the conference.Noble Corp closed at $37.76 Monday, a gain of 2.33% for the day on slightly more than average volume.
Coinstar Surges 13% On Q4 Earnings Results
Coinstar Inc. (NASDAQ: CSTR), which operates Coinstar and RedBox kiosks, released its fourth quarter earnings results after the closing bell on Monday. The company reported net income of $31.5 million or $1.00 per share, compared to $11.7 million or $0.35 per share, in the year ago period. This came in well ahead of Wall Street consensus EPS estimates of $0.64. Revenue at Coinstar for the fourth quarter rose 33.2% to $520.5 million versus $390.8 million in last year's fourth quarter. This also easily exceeded Wall Street consensus estimates of $498.1 million. For fiscal 2011, revenues rose 28.5% to $1.845 billion. Fourth quarter operating margins fell 500 basis points from 11% a year ago to 10.5%. Looking ahead, CSTR sees Q1 EPS between $0.76 and $0.91 and revenue in a range between $530 million and $555 million. Currently Wall Street analysts expect CSTR to report EPS of $0.86 on revenue of $514.5 million in the first quarter. For fiscal 2012, CSTR sees EPS between $3.80 and $4.30 on revenues between $2.075 billion and $2.250 billion. This compares to current analysts' consensus estimates of $3.86 per share on revenues of $2.170 billion. In Monday's after hours trading session, CSTR shares have jumped more than 13% to $57.35.
Hoku Corporation Announces Term Extension of $50 Million Loans
Hoku Corporation (NASDAQ: HOKU) today announced the extension of the maturity date of $50 million in loans from Tianwei New Energy Holdings a leading provider of silicon wafers, photovoltaic cells, modules and systems, and Hoku's majority shareholder. As part of Tianwei's 2009 investment in Hoku, Tianwei provided Hoku with two loans during the first calendar quarter of 2010 totaling $50 million through China Construction Bank, acting as loan agent. The term of each loan is two years. With approval from China's State Administration of Foreign Exchange, the maturity date of the $20 million and $30 million loans, scheduled to mature this quarter, have been extended one year until the first quarter of calendar year 2013. According to the SAFE approval, Tianwei and China Construction Bank are preauthorized to subsequently extend the maturity date for another year, until the first quarter of 2014.
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Cadence Pharmaceuticals Announces Voluntary Recall of One Lot of OFIRMEV Injection
Cadence Pharmaceuticals, Inc. (NASDAQ: CADX) announced today the voluntary recall of a single lot of OFIRMEV® (acetaminophen) injection. Cadence has notified the U.S. Food and Drug Administration of the recall. The recall of OFIRMEV lot number V005710 was initiated due to the presence of an unidentified, visible particle in one vial of this lot during routine stability testing. Lot V005710 was distributed by Cadence to hospitals, wholesalers and distributors beginning in January 2011, and Cadence believes that fewer than 1,000 vials currently remain in the marketplace. Cadence has not received any reports of adverse patient events associated with particulate matter in the product, and has undertaken the recall as a precautionary measure.
BioMed Realty Trust to Acquire Cambridge Place For $119 Million
BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has entered into a definitive agreement to acquire Cambridge Place, comprising three buildings and a total of approximately 287,000 square feet of space in Cambridge, Massachusetts. In aggregate, the property is approximately 80% leased, principally to CDM Smith, Inc., a full-service engineering and construction firm, and Idenix Pharmaceuticals, Inc. (NASDAQ: IDIX), a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases.
American Airlines Reports January Traffic; Up 1.4%
American Airlines reported a January load factor of 78.5 percent, an increase of 2.7 points versus the same period last year. Traffic increased 1.4 percent, while capacity was lower by 2.1 percent year-over-year.International traffic increased 5.0 percent relative to last year as capacity increased 1.2 percent, resulting in an increase in international load factor of 2.9 points versus January last year. Domestic load factor was 78.0 percent, an increase of 2.6 points year-over-year. Domestic capacity and traffic were 4.4 percent and 1.1 percent lower year-over-year respectively.
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BRE Properties Increases Dividend by 2.7% to $0.385
BRE Properties (NYSE: BRE) approved a 2.7% increase for the 2012 common dividend to $0.385 per share quarterly. The quarterly dividend payment is equivalent to $1.54 per share on an annualized basis, and represents a yield of approximately 2.95% on Friday's closing price of $52.27 per share. BRE has paid uninterrupted quarterly dividends to shareholders since the company's founding in 1970.
Source Capital Lowers Dividend from $0.75 to $0.70
The Board of Directors of Source Capital, Inc. (NYSE: SOR), today declared a regular quarterly distribution of 70 cents a common share, payable March 15, 2012, to shareholders of record as of the close of business Feb. 24, 2012. This distribution reflects a reduction from 75 cents paid in the prior quarter. The reduction in the distribution rate reflects the volatility in the overall stock market and the resulting drop in the value of the Company's portfolio and share price during 2011.
Sally Beauty Announces Commencement of a Secondary Common Stock Offering of 20M Shares
Sally Beauty Holdings, Inc. (NYSE: SBH) today announced the underwritten public offering of 20,000,000 shares of its common stock held by investment funds associated with Clayton, Dubilier & Rice, LLC pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission. Upon completion of the offering, the CDR Investors will own approximately 24.51% of the common stock of the Company. The Company will not receive any proceeds related to the offering, and its total number of shares of common stock outstanding will not change as a result of the offering.
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LSB Industries Announces Completion of Improvements to Increase Production at Pryor Facility
LSB Industries, Inc. (NYSE: LXU) today announced that its chemical plant facility located in Pryor, Oklahoma completed a planned improvement project to increase anhydrous ammonia production levels. This project began on January 3, 2012 and was completed on February 3, 2012 during which time the plant was not in production. The Pryor facility produces anhydrous ammonia from natural gas, which is sold as anhydrous ammonia and is also the primary feedstock, along with urea, for the production of urea ammonia nitrate.
TransAtlantic Petroleum Ltd. Announces Preliminary 2012 Capital Budget of $130M
TransAtlantic Petroleum Ltd. (NYSE: TAT) today announced its preliminary 2012 capital expenditure budget, the realignment of its Business Development team and the date of the Company's fourth quarter and year end 2011 earnings release and conference call. 2012 Capital Budget. TransAtlantic Petroleum's Board of Directors has approved a preliminary 2012 capital expenditure budget of approximately $130 million. Spending during the year is expected to consist of approximately $110 million of drilling and completion expense (over 90 gross wells), $15 million of seismic expense, and $6 million on infrastructure expense.
CEDC Responds to Letter From Russian Standard Corporation; Says in Process of Reviewing Proposal
The Board of Directors of Central European Distribution Corporation (Nasdaq: CEDC) responded today to the letter from R.V. Tariko of Russian Standard Corporation, dated February 1, 2012 and filed as Exhibit 99.4 to the Schedule 13D/A filed by Russian Standard on February 2, 2012, proposing a "strategic alliance" whereby, among other things, Russian Standard would seek to convert a portion of its 2013 Senior Convertible Notes in exchange for common stock of the Company, obtain certain minority rights and board seats, possibly extend a backstop credit facility to the Company and possibly sell certain distribution and other rights to the Company. The Board stated that, in accordance with its fiduciary duties and with the assistance of financial and legal advisors, it is currently in the process of reviewing the proposal put forward by Russian Standard. The Board further stated that there can be no assurance of any transaction as a result of its review of the Russian Standard proposal and it does not intend to discuss or provide interim updates regarding this process.CEDC is one of the largest producers of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France, Japan and Germany.
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