For Immediate Release
Chicago, IL – September 30, 2010 – Zacks.com Analyst Blog features:BP plc (BP), Apache Corporation (APA), CA Technologies (CA), International Business Machines Inc. (IBM) and Hewlett-Packard & Co. (HPQ ).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
BP to Sell $3.5 Billion Debt
BP plc (BP) has taken another step toward meeting its $30 billion spill-related obligation. The U.K. oil major has decided to raise cash by using other sources of capital. It plans to sell $3.5 billion debt for the first time since the oil spill on April 20.
Following a prolonged sluggishness, the company recently got back an investment grade credit rating (Baa3 by Moody’s Investors Service, the lowest step of investment-grade), which compelled it to raise money through the debt market.
The sale will be in two parts. One includes $2 billion of notes due October 1, 2015, priced to yield 195 basis points over comparable U.S. Treasuries and the other is a sale of $1.5 billion of notes due October 1, 2020, priced to yield 210 basis points more than Treasuries.
The financially troubled U.K. major plans to dispose of $30 billion of assets over this year and next. It recently sold $7 billion worth of upstream assets to Apache Corporation (APA). The company also intends to sell its oil and gas fields in Vietnam and Pakistan for about $2-$4 billion.
BP has plugged the Macondo well on September 19. Till September 17, the company incurred $9.5 billion to seal the well. Other costs that include fines and penalties, longer-term remediation, compensation and litigation costs, are likely to be stretched over a number of years. We believe that ongoing strategic initiatives allow BP to regain its pre-spill image, which help the company to further pursue long-term growth projects with an emphasis on high-margin oil.
CA to Acquire Hyperformix, Inc.
New York-based CA Technologies (CA) has signed a definitive agreement to acquire Texas-based enterprise software company Hyperformix Inc. Financial terms have not been divulged.
CA Technologies expects the deal to close by the end of the third quarter of fiscal 2011 (ending December 31). Following the acquisition, CA Technologies will integrate Hyperformix’s operations and intellectual properties with its Virtualization and Automation business.
Hyperformix develops solutions designed to deliver business insight into IT operations. The company is a leading provider of Virtualization Capacity Management software, which answers the customers’ critical IT needs arising during the installation of the Virtualization platform for setting up cloud infrastructure.
With the acquisition, CA Technologies will enrich its virtualization, automation, assurance and cloud-based portfolios. The existing level of virtualization and cloud strategies enables CA Technologies to mitigate the problem of “VM Stall” faced by customers during the conversion of a small portion of physical servers into virtualized machines. Hyperformix’s Virtualization Capacity Management offering will be of immense importance since the joint effort will ward off difficulties while setting up a matured virtualized cloud-based infrastructure.
As per the survey conducted by open-source systems management provider Zenoss, virtualization and cloud computing technologies will remain significant growth areas in enterprise IT environments. Based on this, we believe more clients will be inclined to deploy virtualized servers, thereby paving the way for strong revenue growth. Moreover, CA Technologies will extend its reach, adding Hyperformix’ clients and channel partners. We remain encouraged by CA Technologies’ acquisition strategy, which has enhanced its IT management and security software and services portfolio. Last month, CA Technologies acquired Arcot Systems Inc. for a total cash consideration of $200.0 million. Earlier this year, the company acquired Nimsoft AS, 3Tera Inc. and Oblicore Inc.
However, we are slightly concerned about the intense competition in the software and cloud computing space from big players such as International Business Machines Inc. (IBM) and Hewlett-Packard & Co. (HPQ ). We currently have a short-term Hold rating (Zacks #3 Rank) on CA Inc.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
APACHE CORP (APA): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
Zacks Investment Research
