Monday, December 24, 2012

Mohawk Goes Shopping In Italy, Buys Marazzi


Shares of Mohawk Industries (MHK) rose 4.9% in Friday's trading session. The producer of floor covering products in the United States and Europe announced its intention to acquire Italian-based Marazzi Group, in an attempt to create a world leader in ceramic tiles.
The Deal
Mohawk announced that it has agreed to acquire the Marazzi Group, a manufacturer and marketer of ceramic tiles. Mohawk will pay 1.17 billion Euro for Marazzi, the equivalent of $1.5 billion, in a combination of cash and equity.
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Sunday, December 23, 2012

Expedia - Shareholders Act Reserved To The Acquisition Of Trivago


Shares of Expedia (EXPE) fell 2.2% in Friday's trading session after the online travel agency announced that it has agreed to acquire a majority stake in German based Trivago, in order to boost its European operations.
The Deal
Expedia announced that is has entered into an agreement to acquire a majority 61.6% equity stake in Trivago. Expedia will pay a total of 477 million Euro for the stake, or roughly $632 million. This includes a 434 million Euro cash payment, while the remainder will be paid in Expedia's stock.
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Investors Applaud Pinnacle's Deal With Ameristar Casinos


Shares of Pinnacle Entertainment (PNK) rose 21.3% in Friday's trading session. The operator of casinos, hospitality and entertainment facilities announced that it will acquire Ameristar Casinos (ASCA) in a deal which would double the operations of the firm.
The Deal
Pinnacle Entertainment announced that it has entered into a definitive agreement in which Pinnacle will acquire all the outstanding shares of Ameristar for $26.50 per share in cash, for a total enterprise value of $2.8 billion.
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Saturday, December 22, 2012

General Electric Announces The Excellent Bolt-On Acquisition Of Avio


Shares of General Electric (GE) fell 0.8% in Friday's general dismal trading session, which was dominated by the fiscal cliff discussions which were put on hold. The diversified industrial conglomerate announced that it has agreed to purchase the aviation business of Avio S.p.A.
The Deal
General Electric announced that it has agreed to acquire the aviation business of Italian-based Avio S.p.A. The company will pay roughly $4.3 billion dollars for the manufacturer of aviation propulsion components and systems for civil and military aircraft.
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Friday, December 21, 2012

Shareholders Are Not Happy With Markel's Wealth Transfer To Alterra


Shares of Markel (MKL) fell over 10% in Wednesday's trading session, followed by another 0.5% loss on Thursday. The financial holding company announced its intention to acquire Alterra Capital Holdings (ALTE). Shares of Alterra rose 21.7% on Wednesday in a response to the offer, but slipped 0.5% in Thursday's trading session.
The Deal
Markel announced that the respective boards of both companies have unanimously approved a definitive merger agreement in which Markel will be the acquiring party.
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Nike - Shareholder Friendly Financial Strategy Provides Strong Support


Shares of Nike (NKE) rallied up to 5% in after hours trading on Thursday. The seller of athletic footwear and apparel reported a strong set of second quarter results for its fiscal 2013 after the market close.
Second Quarter Results
Nike generated second quarter revenues of $5.96 billion, up 7% on the year before. A strong US dollar had a negative impact on reported revenues. In constant currencies, revenue growth would have come in at 10%. Revenues came in a bit lower than analysts expectations of $6.01 billion.
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Research In Motion - Expect Significant Volatility Ahead Of BlackBerry 10 Release


Shares of Research in Motion (RIMM) have seen quite some volatility in after hours trading on Thursday. The producer of the once so popular BlackBerry reported its third quarter results for its fiscal 2013 after the market close. Shares initially spiked up trading with gains of 8%, but later fell back to trade with losses up to 10%.
Third Quarter Results
Research in Motion reported third quarter revenues of $2.73 billion, down 47% on the year before. Revenues fell roughly 5% compared to second quarter revenues. Quarterly revenues came in ahead of analysts consensus of $2.66 billion.
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Wednesday, December 19, 2012

Compuware - Proposal By Elliott Management Offers Chances For Opportunistic Investors


Shares of Compuware (CPWR) spiked up almost 13% in Monday's trading session. The provider of computer mainframe services, software solutions, and application services has received an unsolicited proposal to be acquired by Elliott Management Corporation.
A Possible Tie-Up
Compuware announced that its board of directors has received an unsolicited, conditional and non-binding proposal from Elliott Management. The hedge fund made proposal to acquire all outstanding shares for $11.00 per share. In a reaction, Compuware's board says it will review the proposal before taking any action.
Shares in Compuware rose 12.9% in Monday's trading session, closing at $10.76 per share. Shares rallied another 6 cents on Tuesday, leaving another 1.7% potential return on the table if a deal would go through at $11 per share.
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Nielsen Makes An Excellent Acqusition By Acquiring Arbitron


Shares of Nielsen (NLSN) rose 4.4% on Tuesday. The global information and measurement company agreed to acquire its smaller competitor Arbitron (ARB). Shares of Arbitron rose 23.6% in a reaction to the deal, still trading 2.0% below the $48 offer.
The Deal
Nielsen announced that it will acquire Arbitron, in a deal valuing the firm at $1.28 billion. Nielsen has signed a definitive agreement to acquire the international media and marketing research firm for $48 per share in cash. The deal represents a 26% premium compared to Monday's closing price.
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Oracle - All Time Highs Remain In Reach As Long-Term Potential Remains Good


Shares of Oracle (ORCL) rose up to 2.5% in after hours trading on Tuesday. The provider of enterprise software systems and cloud-based solutions reported its second quarter results for its fiscal 2013 after the market close.
Second Quarter Results
Oracle reported second quarter revenues of $9.09 billion, up 3% on the year before. Revenues came in ahead of analysts consensus of $9.01 billion.
Revenue growth was driven by a 10% increase in software revenues, coming in at $6.65 billion. New software licenses and cloudware subscription revenues rose 17% to $2.39 billion. The strong performance of the software business was offset by a 16% decline in hardware revenues, coming in at $1.32 billion.
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Tuesday, December 18, 2012

Caribou Coffee - Investors Could Bet On A Revised Higher Offer


Shares of Caribou Coffee (CBOU) rose more than 30% in Monday's trading session. The operator of coffee houses agreed to be taken over by Joh. A. Benckiser for $16 per share.
The Deal
Caribou, which according to its own website is the second largest premium coffeehouse operator of the US, agreed to be taken over by Joh. A. Benckiser.
Caribou has entered into a definitive merger agreement in which the firm will sell itself for $16 per share. The all cash deal values the firm at $340 million. Caribou which was founded in 1992, operates over 601 coffeehouses in total.
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Sprint Announces The Much Anticipated Acquisition Of Clearwire At A Favorable Price


Shares of Clearwire Corporation (CLWR) fell 13.6% in Monday's trading session. The provider of fourth generation wireless broadband services agreed to be taken over by Sprint (S) at a price which disappointed some investors.
The Deal
Shares of Sprint Nextel ended Monday's session unchanged after the firm announced to acquire a 100% ownership stake in Clearwire. Sprint already owned 50% in the firm, and will acquire the remaining 50% stake for $2.97 per share, or $2.2 billion. Sprint will furthermore assume $5.5 billion in net debt and spectrum lease obligations, valuing the entire firm at roughly $10 billion.
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CVS Caremark: Healthcare Reform, Strong Operational Excellence Drive Growth Into 2013


Shares of CVS Caremark (CVS) rose more than 5% over the past trading week. On Thursday, the pharmacy health care provider issued a strong outlook for 2013.
2013 Outlook
For the coming year the company expects adjusted earnings per share to come in between $3.84 and $3.98. The target implies that earnings growth is expected to come in between 13 and 17%. The guidance comes in ahead of analysts' consensus of $3.78 per share.
GAAP earning per share are expected to come in between $3.59 and $3.73.
For the full year of 2013, the company expects to generate free cash flows of $4.8 to $5.1 billion. Cash flow from operations are expected to come in between $6.4 and $6.6 billion.
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Monday, December 17, 2012

Costco - Shares Of This Well-Led Company Trade At A Too Rich Premium


Shares of Costco (COST) lost some 1.7% over the past trading week. The wholesaler of predominantly food products reported its first quarter results on Wednesday, which triggered little enthusiasm among investors.
First Quarter Results
Costco reported first quarter revenues of $23.71 billion for the first quarter of its fiscal 2013, up 9.6% on the year before. Sales growth was driven by a strong same store sales growth of 7%, driven by a 9% increase in international same store sales. Excluding the impact of gasoline inflation, same store sales rose by 6%.
Gross margins rose 6 basis points to 10.68% during the quarter. Selling, general & administrative expenses fell by 7 basis points to 10.05%. Higher gross margins and lower operating expenses resulted in an 18% increase in operating income, coming in at $639 million.
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Best Buy - No Christmas Deal For Shareholders


Shares of Best Buy (BBY) ended a volatile trading week largely unchanged. Shares spiked up sharply on Thursday after reports circulated that founder Schultz had lined up financing to make an offer for the firm. On Friday, a press release from the company indicated that a possible deal might still be far off.
Thursday's Media Reports
On Thursday, shares of Best Buy rose as much as 17% after media reports circulated that founder Richard Schulze finally arranged financing for a deal. Media reports indicated that Schulze might offer $5 to $6 billion for the troubled electronics retailer. A possible offer might value the firm between $15 and $18 per share.
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United Technologies - 2013 Outlook Highlights Long-Term Potential


Shares of United Technologies (UTX) fell roughly 0.5% on Friday after issuing its full year outlook for 2013. The aerospace and building system company known from its Otis, Pratt & Whitney and Sikorsky divisions failed to impress investors and analysts with its update for the coming year.
Confirmed 2012 Outlook...
United Technologies narrowed its full year forecast for 2012. Earnings per share are expected to come in around $5.32 per share, consistent with an earlier guidance of $5.25 to $5.35 per share. Sales are expected to come in around $58 billion.
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SolarCity - Shares Of This Solar Offering Bounce Back After A 42% Discount


SolarCity (SCTY) made its public debut on Thursday, December 13th. Shares of the solar installation firm ended their first day with gains of 47.4% at $11.79 per share.
The Public Offering
SolarCity sells renewable energy to customers at below utility rates. The "solar" firm, founded in 2006, provides solar-generated energy to prices below utility rates in long term agreements with its customers. The company appeals to customers with its "better energy" platform which lowers energy costs, focuses on long term relationships, on a high quality basis.
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Gilead Sciences - Shares Continue To Have Appeal, Trading At All-Time Highs

Shares of Gilead Sciences (GILD) ended an eventful week unchanged. The company announced a stock split and the acquisition of YM BioSciences in a matter of days.
Shareholder Returns
On Monday, Gilead Sciences announced that its Board of Directors have announced a two-for-one stock split. Stockholders of record on the 7th of January of 2013 will be entitled to another share. Shares of the company will be trading at their post-split price on January, 28th. As a result of the split, the number of shares outstanding will increase from 759.3 million to almost 1.52 billion shares.
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PPG Industries - Stellar Deal With Akzo, But Valuation Is Too Rich


Shares of PPG Industries (PPG) jumped 3.8% in Friday's trading session. The global supplier of protective and decorative coatings announced that it would acquire Akzo Nobel's (AKZOF.PK) North American architectural coating business.
The Deal
PPG Industries announced that it will acquire Akzo Nobel's decorative activities in North America in a deal valued at $1.05 billion. The acquisition will double PPG's presence in the North American architectural coating industry. As a result of the deal, the company will expand its company-owned store network to roughly a 1,000 stores.
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MetLife - Uncertain Regulatory Environment And Low Yields Hold Shares Down


Shares of Metlife (MET) lost over 3% of their value over the past trading week. The provider of insurance, annuities and employee benefits programs gave a little inspiring update for the coming year.
Soft Fourth Quarter Earnings Outlook
Metlife estimates that operating earnings for the full year of 2012 will come in between $5.5 and $5.6 billion. Earnings could come in between $5.15 and $5.25 per share, up 19% from last year's earnings of $4.38 per share.
Full year revenues from serving over 90 million customers will come in between $47.3 an $47.7 billion, up 5% from last year.
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Sunday, December 16, 2012

Peabody: Strong Cash Flow Improvements Outweigh Weather Concerns


Shares of Peabody (BTU) ended Friday's trading session largely unchanged. Shares of the coal producer traded with gains of up to 4% during the morning after commenting on its first quarter outlook.
First Quarter Update
Peabody provided some comments on factors affecting its first quarter and full year 2013 targets. Peabody expects Australian unit costs to increase by approximately 10%, driven by start-up costs at its mines and a higher proportion of higher-cost metallurgical costs. At the same time, the company expects to realize lower metallurgical coal prices compared to the current fourth quarter.
U.S. sales will fall roughly 2 million tons on lower demand and a 5% decline in realized pricing, as a result of the expiration of higher priced contracts.
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Saturday, December 15, 2012

General Electric - Holiday Presents Fail To Impress Shareholders


Shares of General Electric (GE) the diversified industrial company ended Friday's trading session unchanged. The company had some pleasant news for shareholders, including a dividend hike and an increase of its current share repurchase authorization.
Good News Show
Just before the end of the calendar year, General Electric announcedthat it will boost payments to shareholders. GE announced a 12% hike in its quarterly dividend to $0.19 per share. The company furthermore increased its existing share repurchase authorization by $10 billion. Consequently, GE has roughly $14.9 billion under its current share repurchase authorization. The board of directors furthermore lengthened its plan until the end of 2015.
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Schlumberger - Disappointing Quarterly Update Triggers A Sell-Off


Shares of Schlumberger (SLB) fell some 5% in Friday's trading session. The supplier of the oil and gas industry issued a disappointing fourth quarter update, prompting a sell-off in the company's shares.
Fourth Quarter Update
Schlumberger issued a poor quarterly operational update on Friday which came as a surprise to investors. The company has seen weakness across the board. Activity in Europe and Africa experienced a continued delay in contractual agreements. Furthermore, the seasonal slowdown in activity levels was steeper than normal.
North American activity levels were weaker than expected as well, based on lower onshore activity in the US and Canada.
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Thursday, December 13, 2012

Cummins Shares Rally On New Buyback Program


Shares of Cummins (CMI) have risen some 4% so far this trading week. The diesel engine manufacturer announced a new $1 billion share repurchase plan on Tuesday.
Good News Show
Cummins announced the new program after completing its current $1 billion share repurchase program, approved in February of 2011.
CEO and Chairman Tom Linebarger commented on the plan, "The announcement of this new repurchase program reinforces our commitment to shareholders and follows a 25 percent increase in the dividend announced in July. We continue to have confidence in the Company's future performance and our strong balance sheet allows us the flexibility to fund future growth and to continue to reward shareholders."
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3M's 2013 Outlook In Line With Expectations, Falls Short Of Long-Term Road Map


Shares of 3M Co (MMM) ended Wednesday's trading session with modest losses of 0.6%. The diversified technological and industrial company affirmed its full year outlook for 2012, and issued a road map for its 2013 performance.
Update
3M on Wednesday confirmed its full year 2012 outlook, of earnings per share of $6.27-$6.35 per share. Performance in the fourth quarter is on track with expectations, and the company has no reasons to adjust its full year outlook.
Looking into 2013, 3M expects earnings to come in between $6.70 to $6.95 per share. At the midpoint of the range, this guides for an increase of annual earnings per share by roughly 8%. The outlook is in line with analysts forecasts of $6.85 per share.
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Wednesday, December 12, 2012

Chesapeake Energy - Company Manages To Finalize A Significant Sale Before Year End


Shares of Chesapeake Energy (CHK) trade with gains of 1.5% inafter hours trading. The troubled natural gas exploration and production company announced to sell a majority of its midstream assets to Access Midstream Partners LP (ACMP) for $2.16 billion.
The Deal
Chesapeake Energy announced that it has entered into a definitive agreement to sell some key midstream assets located in Marcellus, Utica, Eagle Ford, Haynesville and Niobrara.
The cash-strapped energy company will receive approximately $2.16 billion for the assets. The deal includes new market-based gathering and processing agreements, and is expected to close by the end of this year.
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Flextronics: Announcement Of Saturn Acquisition A Sign Of Continued Transformation


Shares of Flextronics (FLEX) hardly reacted to last week's announcement that the firm agreed to acquire Saturn Electronics &Engineering. By acquiring Saturn, Flextronics expands its offerings in the Automotive Energy Management field.
The Deal
Flextronics announced on Monday that it will acquire the Michigan-based company. Few details regarding the deals were announced, with the exception that Saturn generates annual revenues surpassing $300 million.
Saturn supplies electronic manufacturing services to a range of industries including the automotive, consumer, energy and industrial market. The majority of its revenues, over 70%, are being generated in the automotive industry. The deal gives Flextronics access to low cost manufacturing areas in Asia.
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