Breaking News

Greece Debt Crisis Leads the Market Down, REE, DST, NFEC Fight the Trend

The markets are down this morning after a small rebound yesterday on news that the Greek Debt Crisis may escalate and weak manufacturing data. Moody’s Investors Service said it is possible they may cut ratings of French banks due to the banks exposure to Greek debt. For the first time since November the New York Federal Reserves Empire State manufacturing index fell below zero. This index is used as an early indicator of manufacturing conditions throughout the U.S. There are several stocks that are outperforming the markets lets take a look at a few.

NF Energy Saving Corporation (Nasdaq:NFEC) shares are up 77% this morning to $4.10 per share with an intraday high of $4.82. Volume has increased for NFEC as nearly 400K shares have been traded this morning. NF Energy Saving corp has announced its upcoming annual stockholders meeting on June 27, 2011. During the meeting shareholders will have a chance to elect eight new board of director members and ratify the selections of board members for the companies independent accounting firm.

Rare Element Resources Ltd. (AMEX:REE) shares have climbed 12% to $11.10 per share this morning. Volume has been trading fairly heavy this morning and is looking to surpass its average daily volume of shares traded. The jump in REE is due to the announcement that they have upgraded and increased its mineral estimate of Rare-earth elements located in the Bear Lodge project in Wyoming. The upgrades increases the amount of previous estimates by nearly 20%.

DST Systems, Inc. (NYSE:DST) shares are on the move this morning rising 14% to $55.14 with an intraday high of $59.39. the large increase in DST shares comes on news that several private equity firms have inquired about a possible purchase of the data processing company. Offers have been reported to be in the mid $60s per share range. One firm was RDG Capital whose founder Russell Glass said he was rebuffed by DST management who stated they did not want to sell while the company was what they considered grossly undervalued.

Possible Greek Bailout Helps Nasdaq Stocks

Amid talk of a possible bailout in Greece the Nasdaq is trying to rally this morning posting gains of 14.78 points heading into the midday trading hours. This news is along with a few standout stocks is helping the Nasdaq stay in the green this morning.

Yongye International, Inc. (Nasdaq:YONG) shares are up over 42% this morning at $5.34 per share. YONG is up on heavy volume this morning after the company annouced a $50 million investment from the Asian Private Equity division of Morgan Stanley. This move by Morgan Stanley has shocked some investors as there have been many recent problems with small cap Chinese Stocks and the Security And Exchange Commission (SEC) has this sector under investigation for fraud. Yongye International has also been helped by the Chairman and CEO’s plan to purchase up to $3 million of the company’s own common stock.The plan will be disclosed publicly and will follow all appropriate legal guidelines set forth by the SEC.

Eltek Ltd. (Nasdaq:ELTK) shares are on the rise this morning with an over 38% gain at $1.62. Nearly 1.2 million shares have been traded this morning, a drastic increase from the average daily traded volume of 8 thousand shares. Eltek, a leading manufacturer of flex-rigid circuitry, announced both fourth and first quarter results for 2010 and 2011 respectively. While 4Q results showed a net loss of $655,000, 1Q results proved to be much better posting a net profit of $788,000 or $.12 per diluted share. Both quarters compared well to those of the previous year.

FuelCell Energy, Inc (Nasdaq:FCEL) shares have shown some sharp movement this morning and is currently trading at $1.87 this morning, an increase of $0.42. FCEL has traded over 3 times its daily average volume after the company announced they won a $129 million bid to supply fuel-cell power plants for a 70 Megawatt order from Korean based POSCO Power. Fuel-Cell Energy said it will be paid roughly 40% of the value of the contract in October.

Investors Anticipating LinkedIn’s IPO Set for Tomorrow

Investors are wide eyed with with anticipation as the much heralded IPO for LinkedIn (NYSE:LNKD) is set for tomorrow morning. The online networking juggernaut has seen its IPO shares jump to $45 in after hours trading. Mutual funds, pension funds, and all of the major money managers were allowed first crack at the much anticipated release. These investment outlets have pushed the the IPO to much higher than the original $32-$35 expected. The LinkedIn IPO has already netted the company more than $4 billion. This marks the highest debut on Wall Street for a U.S Internet company since Google’s debut nearly 7 years ago.

Many analyst believe the shares will climb higher when the investing public scrambles to get their hands on as many shares of LinkedIn when it goes live. LinkedIn is a unique company that makes the majority of its income from its pay for access to better data system. LinkedIn earned nearly $3.4 million on revenue of $243 million last year. LinkedIn’s CEO is Jeff Weiner a former Yahoo Inc executive and has been with LinkedIn for the last two years.

This could be the beginning of a steady line of Internet based companies that plan to or are claiming to potentially go public. This list includes most of the Internet heavyweights such as Twitter, Facebook, Groupon and Zynga.

About LinkedIn
LinkedIn is a business-oriented social networking site. Founded in December 2002 and launched in May 2003, it is mainly used for professional networking. The Company is based in Mountain View, California which is also the home of internet giant Google.

Market Rallies as Jobs Report Surprises

The markets are rallying today on the positive jobs report that was released today. Private employers added 268,000 jobs and when you take into account job cuts from the government, the economy added 244,000 jobs last month. This number came as a surprise to Wall Street as analysts were predicting around 185,000 for the month. The unemployment rate did rise however to 9% from 8.8%. This rise was caused by more people who resumed looking for work last month. Stocks across the board are having a good day as the market as a whole is up. Let’s take a look at some of the biggest percentage gainers so far today.

Nature’s Sunshine Products, Inc. (NASDAQ:NATR) is up nearly 22% today after the company released their Q1 financial results this morning. NATR is currently trading at $10.00 with an intraday high of $10.25. Nature’s Sunshine Products net sales increased 7% from the previous year going from $86.8 million in Q1 2010 to $92.8 million in Q1 2011. The company’s net income per share this quarter was $0.43 compared to $0.31 for the same quarter last year. Overall, Nature’s Sunshine Products Q1 results were positive across the board.

Shares of Vringo, Inc. (AMEX:VRNG) are up 20% at $2.23 with an intraday high of $2.25. VRNG is trading over double its daily volume with over 83 thousand shares traded. The company announced yesterday that they have launched their new Facetones product on the Android Market. Vringo expects to integrate their new product with other social networks and photo sites in the near future.

Oxigene Inc. (NASDAQ:OXGN) is up 20% today at $2.84 after the company announced Q1 earnings conference call for May 12, 2011. OXGN was as high as $3.11 on huge volume today with over 4 million shares traded. Looks like traders are buying up shares leading up to the conference call. Depending on if they have good or bad results, OXGN should be interesting to watch in the next couple of weeks.

After yesterday’s sharp sell-off into today’s job report, the unexpectedly good news has helped to send stocks higher. Commodity prices have also recovered a little bit today, but I think I speak for every consumer who wishes that oil continues its sharp decline.

Market Reaction to Geithner’s Comments on Credit Rating

Markets are trading relatively flat today as traders still react to the S&P giving the U.S. debt a “negative outlook.” There was a little bit of good news today also as new-home construction increased 7.2% in March. New home construction rose to a seasonally adjusted 549,000 units and building permits rose 11.2% after hitting a nearly 50 year low in February. This is still way below the 1.2 million units a year that is considered healthy for the housing market. While these new home construction numbers are good news, the housing market has a long way to go before it can start to recover.

Oil is still above $107 per barrel today and the price of gas continues its climb as it hit $3.84 per gallon today. The oil minister from Saudi Arabia told reporters that demand for oil has actually dropped an that there is a surplus in the global market. Will this surplus help drive prices down a little bit? Only time will tell.

Timothy Geithner, the U.S. Treasury Secretary, made his way across the three major business networks today saying that the there is no risk of the U.S. losing their AAA credit rating. What else did we expect him to say. It will be interesting to see the debate in Congress over the debt ceiling in the weeks and months to come and whether or not the Republicans and Democrats can come to some sort of compromise.

Let’s take a look at how the markets are reacting today. The Dow is up 9 points, the Nasdaq is down 5 points, and the S&P 500 is up a half point.

Stocks Fall as Japan Raises Nuclear Alert Level

Stocks are getting hammered in midday trading after Japan raised the alert level of its nuclear crisis to the highest level possible. The only other incident that had this high of an alert level was the Chernobyl accident. The Dow, Nasdaq, and S&P are all down 1% so far today. The Dow is down 123 points, the Nasdaq is down 29 points, and the S&P is down 12 points.

Stocks are also down today after Alcoa released earnings that fell short of wall street’s expectations. Shares of Alcoa are down over 6 percent at $16.72. Hopefully this isn’t a sign of things to come as JP Morgan, Chase, Google, and Bank of America are reporting earnings this week.

Oil dropped over 3 percent after Goldman Sachs released a report stating that they expect a substantial pullback in prices of oil. This news comes as a surprise to the market given the ongoing conflicts in the Middle East. The price of gas hasn’t been affected as it reached a national average of $3.79 per gallon last night.

Sprint Shares Plummet after AT&T & T-Mobile Deal

Sprint Nextel Corporation Comm Stocks Plummet on news of AT&T and T-Mobile deal.

Sprint Nextel Corporation Comm(NYSE:S) has seen share fall drastically this morning by nearly 16.5%. Heading into the midday trading hours the Sprint Nextel shares have seen an $.80 drop to $4.20 per share with nearly 160 million shares traded, three times the average daily volume.

This comes as rival AT&T essentially snatched up Sprints only opportunity to catch the telecommunications giant by agreeing to buy T-Mobile USA. Sprint was also in talks with T-Mobile to merge its operations. With such a deal in place, Sprint is left a distant third with seemingly no way to make up ground on the top 2.

On the heels of the T-mobile, AT&T announcement Sprint did announce it plans to partner with Google allowing customers to attach existing phone numbers to Google’s “Google Voice” service. Sprint will also sell Google’s android based “Nexus S” smartphone starting this spring.

About Sprint Nextel Corporation
Sprint Nextel Corporation offers wireless and wireline communications products and services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S. Virgin Islands.

G7 to Weaken the Yen

The world’s seven largest industrialized countries, or G7 as they are known, announced late Thursday that they would intervene in the currency markets in order to lower the value of the Yen (Japanese currency). Since the earthquake and tsunami struck Japan a week ago their currency has soared to the highest levels since World War II.

This unprecedented move is meant to help the Japan economy, as a higher yen will weaken their exports because their goods would cost more overseas. The main market index in Japan, the Nikkei, closed up 2.7% after the announcement.

The New York Federal Reserve Bank also confirmed that they too intervened in the currency markets. This is the first time the U.S. government has openly stepped into the currency markets since 2000 when the government sold dollars and bought euros to help bolster the European currency. No details were given as to the extent of the intervention by the New York Federal Reserve.

The USD/JPY pairing is currently trading at 81.0450, an increase of 2.3102%. The pairing was as low as 76.5700 following the earthquake disaster that struck Japan.

United Community Banks Selling 22.5% Stake

United Community Banks Inc. (NASDAQ:UCBI) have seen shares rise this morning over 25%. Shares have climbed more than $.40 to over $1.90 on more than 2.8 million shares traded. This is three times the normal daily volume of .9 million shares. This large increase in UCBI’s shares is due to announcement of UCBI’s intent to sell a stake of the company.

United Community Banks Inc is looking to sell a one quarter stake in the company(approx 22.5%) for $380 million while offloading $435 million in bad assets to help shore up the balance sheet. UCBI will sell a combination of both common and preferred shares to a group of institutional investors and a partner of Corsair Capital. Such a large stake in the company will give the buying group a seat on the board.

If Corsair Capital and its group of institutional investors are able to purchase this stake before UCBI fails they will be able to avoid rules governing private equity firms buying failed banks that U.S. Bank Regulators have on place. This marks another occasion where private equity firms like Corsair Capital step in to bail out financial institution when traditional funding sources dried up.

About United Community Banks, Inc.
United Community Banks operates as the bank holding company for United Community Bank that provides retail and corporate banking services. Its deposit product line includes interest-bearing and non interest bearing deposits, NOW accounts, money market accounts, checking accounts, savings deposits, time deposits, and brokered deposits.

Warren Buffett’s Berkshire Hathaway Makes Big Acquisition

On the announcement of Berkshire Hathaway’s latest acquisition of Lubrizol(NYSE:LZ). Shares of Lubrizol rose $29.24 up over 27% by the close of the market on Monday. Berkshire Hathaway agreed to pay $135 per common share of Lubrizol stock and will assume nearly $700 million of accrued Lubrizol debt.

Lubrizol represents the kind of company that profiles well for Berkshire Hathaway CEO Warren Buffett. With over $725 million in earnings and profit margins of nearly 24%. Lubrizol meets or exceeds the criteria that Buffet has in place for Berkshire Hathaway acquisitions.

This is one of the largest acquisitions Berkshire Hathaway’s History and is sure to make investors in Lubrizol very happy. With the previously stated purchase point on $135 this marks an 18% increase over Lubrizol’s all-time market high of $114.59 which it attained in the last 6 months.

When the acquisition deal close sometimes in the third quarter Lubrizol will operate as a subsidiary of Berkshire Hathaway and will maintain its current management team and location of Wickliffe, Ohio.

Green Mountain Coffee Roasters and Starbucks Deal Send Both Stocks Up Today

Green Mountain Coffee Roasters (NASDAQ: GMCR) shares have soared up 38% in midday trading rising to over $60 with over 33 million shares traded to this point. Starbucks (NASDAQ: SBUX) is up 9% to over $37 a share with nearly 28 Million shares traded to this point. This phenomenal rise comes on the heels of an announcement of a much anticipated Starbucks Corp. and Green Mountain Coffee Roasters partnership agreement.

Starting this fall Starbucks corporation will begin producing Starbucks and Tazo tea brand single serving brewing portions(K-Cups) for the widely popular Keurig Single Cup Brewing system.  Green Mountains Keurig brewing system is among the most popular single serving brewing systems available on the market.

For Starbucks this marks another step for the retail giant whom already sells single serving instant coffee packets under its VIA brand. For Green Mountain the partnership allows the company to add one of the nations premier coffee retailers to its already highly successful Keurig single serving brew system.

About Starbucks Corporation
Starbucks Corporation purchases and roasts whole bean coffees. The company offers approximately 30 blends and single-origin premium arabica coffees. It includes Via instant coffee, Ethos water, Seattle’s Best, Torrefazione Italia Coffee,and Tazo teas, amongst a stable of highly popular barands.

About Green Mountain Coffee Roasters
Green Mountain Coffee Roasters is the producer of the Keurig single serving coffe and tea brewing system. The company provides cocoa, teas, and coffees in K-Cup portion packs, Keurig single-cup brewers, and other accessories.  Some popular brands such as Newmans Own Organics and Tully’s Coffee join Green Mountain coffee as staples under an ever expanding line of products.

Real Time Web Analytics