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DISH Networks Wins Blockbuster Auction

DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

Continue reading DISH Networks Wins Blockbuster Auction

Texas Instruments Acquires National Semiconductor

In a move to bolster market share, Texas Instruments (TXN) is purchasing National Semiconductor (NSM) for $7.4 billion, according to the Associated Press.

Texas Instruments is a market leader in digital signal processors (DSP)s. DSPs are found in wireless phones, DVD players, automotive systems and computer modems. They also make logic chips, microprocessors, microcontrollers, display components and calculators.

National Semiconductor offers a variety of integrated circuits (IC)s, especially analog and mixed signal chips. The analog chips transform physical information -- light, sound, pressure and radio waves into data that a computer can use. National's chips are in a host of wireless communications, networking, medical, solar, automotive and industrial applications.

Continue reading Texas Instruments Acquires National Semiconductor

Chuck Adds optionsXpress to Schwab's Portfolio

Charles Schwab (SCHW) has announced its decision to acquire optionsXpress (OXPS) in a friendly all-stock deal. This deal will help Schwab compete with other firms like E-Trade (ETFC), Ameritrade (AMTD), and Bank of America (BAC), which all have large online brokerage services and are vying to provide investors with the best tools and services.

The deal, which is expected to close by the third quarter of 2011, will cost Schwab $1 billion, and the company will issue 60 million new shares to swap each outstanding share of optionsXpress with 1.02 of its own shares. Our $19.74 price estimate for Charles Schwab is at a premium of almost 12% to its current market value.

Continue reading Chuck Adds optionsXpress to Schwab's Portfolio

General Mills Likes Yoplait So Much It's Buying 50% of the Company

General Mills (GIS) is buying a 50% stake in Yoplait from PAI Partners for roughly $1.1 billion, Reuters reported Thursday, citing sources close to the deal.

The deal is a nice fit for both companies. Yoplait is second to Danone (DANOY) in the yogurt market. General Mills has the industry presence to promote the Yoplait brand, something that would benefit PAI.

For General Mills, Yoplait would add an another revenue stream to an already diversified conglomerate. Some of General Mills' products include cereals, Haagen-Dazs ice cream, Green Giant vegetables and Progresso soup. The company has already been distributing Yoplait for 30 years, so the distribution network is already in place.

Continue reading General Mills Likes Yoplait So Much It's Buying 50% of the Company

Will Buffett Back Away from His Deal with BYD, the Chinese Auto Maker?

Warren Buffett invested $232 million in BYD (BYDDF), a Chinese auto maker during the financial crisis, as reported by Reuters. As of December 2010 Buffett's 225 million shares were worth $1.18 billion. In 2009, the shares were valued at just under $2 billion. So from 2009 to 2010, Buffett's Berkshire Hathaway (BRK.A) lost about 40% of his investment.

But that is just the beginning. Now there is criticism surrounding the new Chinese car, dubbed the hybrid car F3DM.They center around two major areas, authenticity of the design and the overall workmanship of the car itself.

Continue reading Will Buffett Back Away from His Deal with BYD, the Chinese Auto Maker?

NYSE Euronext and Deutsche Boerse Merger Spells Promising Margin Outlook

NYSE Euronext (NYX) and Deutsche Boerse AG of Germany recently announced a merger that will create the world's largest financial exchange. NYSE is the world's largest stock exchange in the world by market capitalization of its listed companies and Deutsche Boerse AG is the largest stock exchange operator in Germany. NYSE Euronext's main competitors are Nasdaq OMX (NDAQ) and CME Group (CME).

We have a price estimate of $34.77 for NYSE Euronext's stock, which stands below market price.

Continue reading NYSE Euronext and Deutsche Boerse Merger Spells Promising Margin Outlook

Yahoo! Still Trying to Play Catch Up

Yahoo! (YHOO)Yahoo is still trying to play catch up. Helped by cost cuts, Yahoo! (YHOO) posted late Tuesday fourth quarter income of $312 million, or 24 cents a share, more than double last year's income of $153 million, or 11 cents a share, according to the Wall Street Journal. Revenue fell 12% to $1.53 billion from $1.73 billion.

Net revenue, which excludes commissions paid to partners, fell 4% in the quarter to $1.22 billion from $1.26 billion in the year ago period. Excluding the Microsoft (MSFT) impact and certain divestitures, revenue grew by 2% in the quarter.

Continue reading Yahoo! Still Trying to Play Catch Up

LM Ericsson Open to Making Acquisitions

ERIC logoLM Ericsson Telephone (ERIC - option chain) shares are rising today after the company announced that it would be prepared to buy rivals when they run into trouble, as it did when it bought parts of rival Nortel. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ERIC.

ERIC opened this morning at $11.42. So far today the stock has hit a low of $9.17 and a high of $12.39. As of 12:00, ERIC is trading at $11.54 up 0.22 (1.9%). The chart for ERIC looks bearish and S&P gives ERIC a negative 2 STARS (out of 5) sell ranking.

Continue reading LM Ericsson Open to Making Acquisitions

Jacobs Engineering Group Rises on New Acquisition

Jacobs Engineering (JEC) logoJacobs Engineering Group (JEC - option chain) shares are rising today after the company announced it has agreed to acquire the Process and Construction operations of Aker Solutions ASA for $675 million in cash. The deal will significantly expand JEC's presence in the mining and metals market, and is expected to close in the second quarter of fiscal-2011. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JEC.

JEC opened this morning at $44.36. So far today the stock has hit a low of $44.28 and a high of $47.97. As of 12:10, JEC is trading at $45.90 up $1.75 (3.9%). The chart for JEC looks bullish and S&P gives JEC a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Jacobs Engineering Group Rises on New Acquisition

Aeropostale Takeover Rumors Swirl

Aeropostale (ARO) logoAéropostale (ARO - option chain) shares are soaring today on rumors that the company could go private in a deal with a private equity company worth $40 per share. ARO has not commented on the rumor. Even if ARO executives do not want to sell, this kind of interest could establish a floor for the stock price. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ARO.

ARO opened this morning at $24.62. So far today the stock has hit a low of $23.98 and a high of $25.00. As of 12:25, ARO is trading at $24.61 up 0.95 (4.0%). The chart for ARO looks bearish and S&P gives ARO a negative 2 STARS (out of 5) sell ranking.

Continue reading Aeropostale Takeover Rumors Swirl

Riverbed Enters Bidding War Against Hewlett-Packard

Riverbed Technology (RVBD - option chain) shares are rising today on reports that the company is in negotiations to buy Radware (RDWR) for $47 per share. Rival Hewlett-Packard (HPQ) reportedly has offered $45 per share for RDWR. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on RVBD.

RVBD opened this morning at $35.50. So far today the stock has hit a low of $34.58 and a high of $36.91. As of 12:20, RVBD is trading at $34.99 up 0.17 (0.5%). The chart for RVBD looks neutral and S&P gives RVBD a neutral 3 STARS (out of 5) hold ranking.

Continue reading Riverbed Enters Bidding War Against Hewlett-Packard

Dean Foods Takeover Speculation Resumes

DF logoDean Foods (DF - option chain) shares are up a significant amount for the second consecutive day after rumors resurfaced that Groupe Danone SA could be investigating an acquisition of the company. This rumor first came to light back in March, but since then DF has seen its share price cut by a third, which could make the company even more attractive now. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DF.

DF opened this morning at $10.55 So far today the stock has hit a low of $10.50 and a high of $10.75. As of 12:15, DF is trading at $10.63 up 0.41 (4.0%). The chart for DF looks neutral and S&P gives DF a neutral 3 STARS (out of 5) hold ranking.

Continue reading Dean Foods Takeover Speculation Resumes

Continental Lifted by Merger's Regulatory Approval

Continental Airlines (CAL - option chain) shares are rising today after the US Justice Department said over the weekend that it has no more antitrust concerns about CAL's proposed merger with UAL Corp. (UAUA). Now the merger only needs to gain approval from UAUA and CAL shareholders as well as the Transportation Department. The deal is expected to close by October 1. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CAL.

CAL opened this morning at $22.23. So far today the stock has hit a low of $22.02 and a high of $25.99. As of 12:20, CAL is trading at $22.09 up 0.29 (1.3%). The chart for CAL looks bullish and S&P gives CAL a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Continental Lifted by Merger's Regulatory Approval

Dell Purchasing 3Par

Early Monday morning, Dell (DELL) announced that it is buying data storage company 3Par (PAR). The price tag for the transaction is roughly $1.13 billion in cash, which translates to $18 per share for 3Par. Compared to Friday's closing price ($9.65), Dell is paying an 87% premium for 3Par. 3Par specializes in products that are designed to minimize the costs of greater capacity and energy.

Dell expects the deal to help its adjusted profit during fiscal 2012. The boards of both companies approved the deal, which should close by the end of the year. Obviously, we will see shares of 3Par advance to the $18 region, as Dell has assigned this price on the firm's shares. However, what will we see out of Dell?

Continue reading Dell Purchasing 3Par

Limited Brands Sells The Limited

The Limited is under Limited Brands (LTD) no more. The retail company unloaded the remaining 25% of the eponymous women's apparel retailer to private equity firm Sun Capital Partners, which already held 75% of the company. The final chunk of the 220-store chain sold for roughly $32 million. Sun bought its initial 75% stake in the name in August 2007.

Sun Capital's influence has been good for The Limited, which posted positive pretax annual earnings for the first time since 1993 (ironically, that's the year when I spent 90% of my allowance on their clothes. Honeycomb sweaters, anyone?).

Continue reading Limited Brands Sells The Limited

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Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 04:14 AM

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