2011 June

Southern Union, MediaMind, and Parkvale Buyouts Lead a Rebounding Market

After a slow start this morning the Dow has begun a rebound and is currently up 79 points heading into midday trading. Positive new home construction and jobs reports lead the way for the market to post its first weekly gain in over a month. While unemployment benefit applicant numbers are still over 400K they did see slight drop this last week. There are buyouts aplenty in the market today lets take a look at three of them making waves.

Southern Union Co. (NYSE:SUG) shares have jumped this morning rising 17% to $33.14 with an intraday high of $34.14. Volume has traded ten times above it average on news that Energy Transfer Equity (NYSE:ETE) agreed to purchase SUG for $4.2 billion. With the acquisition of Southern Union, ETE will be one of the nations largest natural gas pipeline owners with a capacity of 30.7 billion cubic feet. Energy transfer agreed to buy Southern Union for $33 per share a 17% premium over its previous closing price.

MediaMind Technologies (Nasdaq: MDMD) shares are up 37% to $21.98 this morning with an intraday high of $22.49. Volume is up on news that DG FastChannel, Inc. (Nasdaq:DGIT) has agreed to purchase MDMD for $418 million. The offer includes DGIT paying $22 per MediaMind share a 38% premium over its previous close. The deal is expected to close on the third quarter this year. DGIT said the deal will be funded by cash and debt financing from JPMorgan Chase and Bank Of America Merrill Lynch.

Parkvale Financial Corp. (Nasdaq:PVSA) shares have nearly doubled this morning climbing 81% to $19.97 per share. Volume is up as well with over 600K shares exchanging hands today. This large move is due to PVSA’s acquisition by F.N.B. Corporation (NYSE:FNB). The all stock transaction is expected to be worth $22.48 per share or roughly $130 million overall. The acquisition will make FNB the third largest deposit Market share in the Pittsburgh MSA with over $3.3 billion in deposits and 101 full services Branches.

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.

Markets Looking to Shake Slump, RITT, HTCH, LMPL Lead the Way

The markets are trying hard to rebound this morning and shake of the slump the market has been in. The Dow is up over 1% climbing 120 points heading into the midday trading hours. The Nasdaq and S&P 500 are also up over 1% each. Today’s market rally is due in large part to retail sales news. Retail sales were down slightly last month by .2% which is slightly better than analyst had expected. The downward dip was due to a drop in new car sales which comes in direct correlation to reduced imports from Japan. Excluding the drop in new car sales, retail sales increased by .3%. Lets take a look at a few of the active stocks that are pacing the market.

RIT Technologies Ltd. (Nasdaq:RITT) shares have doubled this morning rising 146% to $7.35 per share with an intraday high of $9.15. Volume is trading very heavy in comparison to the average daily volume of 6K shares on news of a partnership with Samsung Fiber Optics. In the deal, Samsung Fiber Optics will market, sell, and distribute RITT’s PatchView Intelligent Infrastructure Management (IIM) solution. The partnership has led Samsung to install the PatchView IIM in one of Korea’s largest convention centers for its first project. Samsung Fiber Optics is a division of Samsung Electronics.

Hutchinson Technology Inc. (Nasdaq:HTCH) shares are on the rise this morning climbing 17% to $2.44 per share. Volume has nearly tripled this morning on news that HTCH has revised its 2011 3Q outlook. Hutchinson now expects suspension assembly shipments to grow by as much as 10% to nearly 112.5 million units. To date 11 weeks into the 3Q approximately 93 million units have been shipped. HTCH also announced the company is currently in discussion with an un-named US bank to establish a secure credit facility of up to $35 million. Hutchinson Technology is expected to release its 3Q results on July 26, 2011.

LML Payment Systems, Inc. (Nasdaq:LMLP) share are up this morning jumping 18% to $3.61 with an intraday high of $3.79. Volume is up as more than 1.6 million share have been traded on 4Q fiscal results. Gross profit for LMLP was up 53% to $13.2 million. Net Income was $7.3 million or $.26 per share compared to a net loss of $185,000 for the 4Q in the previous year. For the full year net income was $10.3 million or $.38 per share compared to a net loss for the previous year of $126,000.

Timberland, EMS Technologies, Gerber Scientific Buyouts Pace a Slow Market

The Dow is trading slightly higher this morning after being up 45 points at one point. The Nasdaq and S&P 500 are also trying to move a little higher and have seen small gains and losses this morning. Oil has dropped to near $98 as Saudi Arabia vowed to boost production by 13% to help increase global supplies and help lower prices. Today’s market has been able to stay green due to a series of corporate deals, let’s take a look at a few of the larger acquisitions.

Timberland Company (NYSE:TBL) shares are up this morning, rising 42% to $42.75 with an intraday high of $42.87. TBL is trading on heavy volume after news that V.F. Corporation (NYSE:VFC) has agreed to purchase the footwear company for roughly $2 billion. VFC offered $43 per share which is a 43% premium over Timberland’s previous closing price of $29.99. VF Corporation is looking to expand its outdoor and sport brands with the addition of TBL to its staple of brands including North Face and Nautica.

EMS Technologies, Inc (NASDAQ:ELMG) shares have jumped 32% to $32.82 this morning. Volume is very heavy this morning with nearly 3.5 million shares exchanging hands on news that Honeywell International Inc.(NYSE:HON) has agreed to purchase ELMG for $491 million. HON has offered $33 per share for EMS Technologies. The takeover is expected to be completed in the third quarter this year. Honeywell International Inc share have risen $.36 on the takeover news.

Gerber Scientific, Inc. (NYSE:GRB) shares have climbed this morning up 35% to $11.00 per share. Volume has exceeded 20 million shares on news that private equity firm Vector Capital Corporation has reached an agreement to purchase GRB for $281 million. The deal is worth $11.00 per share and has been unanimously approved by GRB’s board of directors. The agreement allows for Gerber Scientific to solicit other bids for the company through July 25. If no other offers are received the deal is expected to close later this year.

Dow Falls Again, MITI, LVY, VRGY Fight to Gain Ground

The markets are down across the boards this morning. The Dow has fallen 134 points heading into the midday trading hours. Unless the Dow recovers sharply it is likely it will see its sixth straight down week. This marks the longest losing streak since Fall of 2002. The Nasdaq and S&P 500 are both down as well today, both falling over 1%. There are a few stocks that are fighting this losing trend. Let’s take a look at who they are.

Micromet, Inc. (Nasdaq:MITI) shares have jumped up this morning climbing 12% to $5.93 with and intraday high of $6.20. Micromet is trading on three times the normal volume. News that the company’s experimental drug Blinatumomab reduces levels of cancer cells in 9 of 12 patients with Acute Lymphoblastic Leukaemia(ALL) has sent the stock up today. Of the 9 successful patients, six showed complete remission while three showed the next-best outcome with partial recovery of blood counts. Though the drug is still several years away scientists are intrigued by the drug’s possibilities.

Live Nation Entertainment, Inc. (NYSE:LYV) shares are on the move this morning and have risen $.66 to $10.96 per share with an intraday high of $11.14. Live Nation has been in talks with Liberty Media mogul and LYV’s majority shareholder John Malone about the possibility of taking LYV private. Live Nation combined with Ticketmaster last year and experienced a very slow year. During the economic downturn many fans couldn’t afford ticket prices which led to the sub-par year. Sales have rebounded slightly this year and Live nation has a current market value of around $1.90 billion.

Verigy Ltd (Nasdaq:VRGY) shares are up this morning 10% to $14.95 per share. Volume is very heavy as over 36 million shares have been traded on news of its acquisition by Advantest Corp cleared a U.S. antitrust hurdle. Advantest of Japan has offered $15 per share for Verigy Ltd shares. Fears that the deal was falling through affected the price of shares on Thursday as they fell to $13.13. Verigy will have a shareholder meeting on June 17th to a vote on the deal.

Trade Data Helps Markets Edge Up, JVA, UHAL, and COOL Lead The Way

The markets have all edged up this morning led by the Dow which has risen 87 points. The Nasdaq and S&P 500 have risen 7 and 9 points respectively. The rise comes as news that U.S. exports hit a record high in April while imports declined in part to the earthquake and tsunami disaster in Japan. This increase in exports led to a decrease in the US trade deficit. Let’s take a look at 3 Nasdaq movers.

Coffe Holding Co. (Nasdaq:JVA) shares have climbed this morning rising 31% to $11.15 per share with an intraday high of $11.30. Nearly 1.3 million shares of JVA have been traded this morning as 3 and 6-month financial reports have been released. Coffee Holding Co. reported a net income of nearly $1.2 million or $.22 per share in the first 3 months, while 6-month net income was 2.2 million or $.41 per share. Sales grew by 87% in the first 3-month window and by 52% for the 6-month window compared to the previous year.

Amerco (Nasdaq:UHAL) shares have seen a nice 8% increase this morning to $93.29 per share with an intraday high of $95.00. The increase in the UHAL shares comes from better than expected 4Q results. Amerco had a profit $13.2 million versus a net loss of $5 million in the same quarter last year. With a loss of $.52 per share UHAL beat Wall Street estimates of a loss of $.77 per share. Amerco is the parent company of “do it yourself” mover U-Haul International, Inc.

Majesco Entertainment Company (Nasdaq:Cool) shares continue to rise this week climbing 11% to $4.13 per share. Volume has nearly doubled its average today and Majesco continues to be heavily traded this week. The rise in COOL comes as the company purchased privately held Quick Hit Inc. and the rights to its Online Fantasy Football game, and the announcement that Majesco has teamed up with the NBA to develop an original video game basketball franchise.

Markets Rebound and Temple-Inland and FriendFinder Network Lead the Way

After several days of steady losses the markets are trying to recover this morning. The Dow is up 68 points, the Nasdaq is up 6 points and the S&P 500 is up 5 points. Oil is down $.64 a barrel dropping below $99 ahead of Wednesday’s OPEC Meeting. Lets take a look at the factors responsible for the rise in the markets this morning.

One of the big driving forces behind the market to is the anticipation behind Federal Reserve Chairman Ben Bernanke’s speech this afternoon. The Fed has stated it is willing to wind down its $600 million bond-buying program this month. There are many concerns over the poor economic reports that have been issued in recent weeks leading some to speculate that the bond-buying program may get extended. At least some members of the Fed feel that the bond-buying program should not continue. Dallas Federal reserve president Richard Fisher thinks we are on the cusp of turning the corner in the economy stating “”We are lean and mean, our balance sheets are in great shape in America–There is a lot of liquidity out there. I am eager to see the trigger — I don’t know what it is — for that money to be spent putting Americans back to work.”

Temple-Inland Inc. (NYSE:TIN) shares have jumped up this morning climbing 40% to $29.62 with an intraday high $29.97. TIN has implemented it’s “Poison Pill” plan essentially trying to prevent a hostile takeover bid from its larger rival International Paper (NYSE:IP). The plan gives share holders the opportunity to buy new shares that will dilute the value of existing stock if a hostile takeover entity acquires 10% of its shares. The bid by IP works out to $30.60 per share, but Temple-Inland stated the offer was too low. The $3.3 billion takeover attempt represented a 45% premium over TIN’s Monday afternoon closing price.

FriendFinder Networks Inc. (Nasdaq:FFN) shares are up 13% this morning to $5.67 per share with an intraday high of $6.10. Volume has exceeding 1.8 million shares today as FFN released its 1Q financial results. Income from operations increased 52% to 19.7 million. Net loss decreased this quarter to $.27 from $.60 per share in the 1Q last year. FriendFinder also repaid $65 million in debt since December 31, 2010 and completed a 5 million share public offering on May 11.

Markets are Down While Apple and Tech Stocks Fight the Trend

After five consecutive weeks of losses the market is down again this morning. The Dow has fallen nearly 39 points, while the Nasdaq and S&P 500 have fallen 11 and 7 points respectively. As the market struggles to gain ground a multitude of factors are keeping it down this morning while a few news makers fight to help the market rebound.

State and local governments are looking at record layoffs starting on July 1. This sector of the job market is expected to shed an additional 110,000 jobs and appears that teachers and school staff will see the majority of these layoffs. Local governments have finally begun feeling the crunch of the mortgage meltdown as the main source for their income, property taxes, is steadily dwindling down.

The Greek debt crisis has been the subject of many articles over the past few weeks and will continue to be a factor driving the movement of the U.S. market as well. On Monday Greek Prime Minister George Papandreou started a campaign to gain acceptance of and secure a new international bailout plan agreement between Greece and the European union and IMF. Under the successive deals with the European Union and IMF, Greece must impose several years of austerity with waves of budget cuts. Nearly 80,000 Greek citizens gathered in Athens Monday to protest the country’s dire state.

Tech stocks are among the few areas in the market that has the potential to see some growth as today begins the ever popular Electronic Entertainment Expo (E3). The E3 Conference is where tech companies reveal their latest gadgets and software that will set the tech world on fire. Video game developers lead the way for some of the positive influences in the Market today. Activision Blizzard, Inc (Nasdaq:ATVI), Majesco Entertainment (Nasdaq:COOL), and Electronic Arts, Inc (Nasdaq:ERTS) are among those set top reveal new software at the E3 conference.

While the E3 conference is ongoing in Los Angeles another technology juggernaut is expected to take the stage in San Francisco. Apple Inc.(Nasdaq:APPL) CEO Steve Jobs is expected to take the stage on Monday to announce iCloud, Apple’s foray into web-based cloud computing. Apple’s iCloud will allow its users to stream previously purchased content through iTunes to any Apple device. The announcement is also expected to help sales of Apple’s hardware.

NYSE Stocks Horizon lines, Orbitz, and Hill International all Gaining

The NYSE is a mixed bag heading toward market close. The NYSE composite is up 6.2 points while other sectors of the index are down slightly. While gains and losses across the board have been marginal today, several stocks are climbing and actually showing some strong gains.

Horizon Lines, Inc. (NYSE:HRZ) shares are up 30.3% to $1.33 per share with an intraday high of $1.56. HRZ has traded on three times normal volume today as the company announced it has reached an agreement to refinance its debt. The agreement is with holders of its 4.25% convertible senior notes. Horizon Lines will exchange the convertible notes for a newer version of convertible notes with 6% interest and 5.5 year maturity. This is a big step for HRZ who was warned that the NYSE may de-list the company if they cannot refinance its debt.

Orbitz Worldwide, Inc (NYSE:OWW) shares have climbed today up 30% to 42.85 per share with an intraday high $3.23 per share. Orbitz has seen volume of over 3 million shares today as it announced it was awarded a case against American Airlines (NYSE:AMR). An Illinois Circuit Court Judge forced American Airlines to resume ticket sales on the discount travel website after it had removed its fares from the Orbitz web site in December 2010. American Airlines has agreed to comply with the judges decision but is mulling over its legal options at this time.

Hill International Inc. (NYSE:HIL) shares soared today up 58% to $6.91 per share with an intraday high of $7.38. Volume exceeded 4.7 million shares as HIL was awarded with a contract worth $1.5 billion. The contract from TRAC Development group call for hill international to provide project management an construction management services in conjunction with a housing development in Iraq. The development will include construction of 500,000 housing units plus all related infrastructure. Hill International’s contract is for the initial phase including construction of 100,000 units.

AFFX, MVIS, COCO Gain Amid Struggling Nasdaq

The Nasdaq is struggling this morning after a sharp drop yesterday. The Nasdaq is currently down 4.5 points and continued weak economic data is the driving force behind the markets instability. There are some stocks that are showing gains despite the overall markets state.

Corinthian Colleges, Inc. (Nasdaq:COCO) shares soared up 31% in the morning trading session to $5.23 with an intraday high of $5.61. COCO is trading on heavier than normal volume on news that the Education Department has released a final version of its “Gainful Employment” rule. The rule is to determine if for-profit colleges meet qualifications for federal student aid. Corinthian Colleges like many other for-profit institutions that had been at risk of losing federal aid will now meet the necessary requirements for federal student aid. This news has been a shot in the arm for many of the for-profit schools including Strayer Education (Nasdaq:STRA), DeVry, Inc (NYSE:DV), and Capella Education(Nasdaq:CPLA).

Microvision, Inc (Nasdaq:MVIS) share have climbed up 12% to $1.37 with an intraday high of $1.55. Microvision volume is trading four times the daily average on announcement its SHOWWX+ laser pico projector will be available for purchase in Apple’s (Nasdaq:AAPL) online store. Microvision’s SHOWWX+ is made for the IPOD, IPHONE, and IPAD and enables user to display content on any surface up to 9 ft away. MVIS’s pico projector is pocket sized and offers big-screen focus-free operation for Movie veiwing and in-motion gaming. MVIS pico projector will be made avialable in the Europe, Middle East, Asia (EMEA) division of Apple’s online store.

Affymetrix, Inc (Nasdaq:AFFX) is trading up 10% this morning to $6.93 per share with an intraday high of $7.08. AFFX is trading on heavy volume as analyst upgrade the company from a neutral standing for its shares to “outperform” status. The upgrade comes on news that Affymetrix has hired CEO Frank Witney who is expected to revive the company’s revenue stream. Whintney was recently the CEO for Dionex which was purchased by Thermo Fisher Scientific, Inc (NYSE:TMO) for $2.1 billion.

Nasdaq slumping TLVT, OREX, COOL, RADA Shine

The Nasdaq is slumping today as weak economic news is driving the downward trend. The Nasdaq has fallen nearly 1% to 2,810.29 heading into midday trading. Despite the overall state of the market several stocks are showing strong gains.

Telvent GIT S.A. (Nasdaq:TLVT) shares are up 15% this morning to 39.73 per share. Telvent has climbed this morning on heavy volume after the announcement of a proposed buyout by Schneider Electric. Schneider Electric agreed to purchase TLVT for $40 per share, a 36% premium over Telvent’s average closing price over the last 30 days. The deal is expected to be worth a little over $2 billion. Abengoa is the largest shareholder of TLVT stock and has agreed to sell its 40% stake.

Orexigen Therapeutics, Inc. (Nasdaq:OREX) shares are climbing this morning already rising 14.5% to $3.25 per share. Volume has more than tripled on news that It would make an regulatory announcement about its obesity treatment, Contrave this Friday. OREX had planned to meet with the FDA after they had previously rejected the drug because of safety concerns. In the original rejection the FDA stated Orexigen would need to conduct a study of Contrave’s side effects on the heart.

Majesco Entertainment Company (Nasdaq:COOL) shares are on the rise this morning up 7% to $3.23 per share with an intraday high $3.28. Majesco’s rise this morning comes on news that the vidoe game provider has announced its upcoming lineup for this years Electronic Entertainment Expo (E3). COOL will be adding to its Library of games for the XBOX 360 Kinect system as well as the Nintendo DS. Majesco will also be showcasing two of its current Facebook titles “Cooking Mama Friends Cafe” and “Parking Wars 2”

RADA Electronics Industries Ltd. (Nasdaq:RADA) is on the rise this morning with shares up 18% to $3.94 per share with an intraday high of $4.48. Volume has been up as well on RADA’s 2011 1Q results. Rada reported revenues of $7.8 million in 1Q a 72% increase from a year ago. RADA also reported a net profit of $393,000 compared to a net loss of $518,000 a year ago. Operating profit also increased for the company to $543,000 versus a net loss last year.

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