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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

What Will Pringles Do for Diamond Foods?

Diamond Foods (DMND) logoDiamond Foods (DMND) acquired the Pringle brand product from Proctor & Gamble (PG) for $2.35 billion, as reported in Dealbook.

When we think of Diamond Foods we think of nuts, edible nuts. Diamond's two main brands are Diamond and Emerald. It produces all kinds of nut products for cooking and eating. Among them are almonds, Brazil nuts, hazelnuts, pecans, pine nuts and peanuts. The product line also includes microwave popcorn and potato chips.

Continue reading What Will Pringles Do for Diamond Foods?

NYSE Looks at Selling Stakes in Amex Exchange to Drive Volumes

NYSE Euronext (NYX) acquired American Stock Exchange (Amex) in 2008 to expand its equities, options and exchange-traded funds (ETFs) trading business. Recently NYSE announced plans to sell the majority of its stake in the Amex stock options market to seven companies -- including top banks, trading houses and brokerages. With this move, the company hopes to increase its trading volumes by giving major brokerages an incentive to bring their business to Amex. Major competitors are Nasdaq OMX (NDAQ), CME Group (CME), BATS Global and Direct Edge.

Continue reading NYSE Looks at Selling Stakes in Amex Exchange to Drive Volumes

The Bumpy Ride Continues with Whirlpool

Place Whirlpool Corporation (WHR), first discussed here on March 13, 2009, at a price of $34.47, in the not-for-squeamish-investors category.

Appliance manufacturer extraordinaire Whirlpool's stock over-corrected last summer, formed a bear-hug, bottomed at/near $69.50, then recovered to about $90 during the winter -- before recently sliding back to $84. Translation: a roller-coaster -- something that one generally does not see with an industrial player. Even so, I still like WHR here. But hold on to your hat if you own the shares -- the bumpiness could continue in 2011.

And if you haven't already, consider taking some provides off the table with WHR, if you're in at/near $34.50.

Continue reading The Bumpy Ride Continues with Whirlpool

America Movil to Expand Growth with Pre-Paid Data Plans

Carlos Slim, America Movil's (AMX) largest shareholder, became the world's richest man in part from his investments in wireless phone service. His empire spans 18 countries and has 200 million subscribers.

Let's look at America Movil's spectacular growth. The company's markets are primarily in Latin America. American Movil controls 74% of wireless service in Mexico under its Telcel brand, which has 60 million subscribers. Brazil is second with 45 million subscribers. It also is the largest provider in the Caribbean with four million users.

Continue reading America Movil to Expand Growth with Pre-Paid Data Plans

Options Update: Texas Instruments Volatility Flat into National Semi Purchase

Texas Instruments (TXN) agreed to buy National Semiconductor (NSM) for $25 per share. Texas Instruments overall implied volatility of 26 is near its 26-week average, according to Track Data, suggesting non-directional price movement.

Diamond Foods (DMND) and Procter & Gamble (PG) announced a definitive agreement to merge the Pringles business into Diamond Foods -- in a transaction valued at $2.35 billion. Overall option implied volatility of 32 is below its 26-week average of 36, according to Track Data, suggesting decreasing price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

Store Expansion and DIY Activity Will Benefit Lowe's

Lowe's (LOW) is the world's second largest retailer of home improvement products after Home Depot (HD). Walmart (WMT) and Target (TGT) also cater the home improvements market. Lowe's offers a wide range of home improvement products and installation services to individual home owners as well as professional builders. In addition to the physical stores, consumers can buy products through the company's dedicated website. Lowe's business is vulnerable to the housing market swings and the recent slowdown has affected its sales to a great extent in the past few years.

Continue reading Store Expansion and DIY Activity Will Benefit Lowe's

OpenTable Gaining Momentum in Diners Seated

OpenTable(OPEN) has come a long way since Chuck Templeton envisioned the idea in 1998 after observing the difficulty his wife faced while trying to book a dinner reservation by phone. Today, it is the leading provider of free and real-time online restaurant reservations for users looking to book reservations online as well as a reservation and guest management solution for restaurants. The company is comfortably ahead of its competitors like Urbanspoon, owned by IAC/InterActiveCorp and UK-based companies liveRES Ltd and Livebookings Ltd. It also seems to have hit the right note with its decision to take Groupon head-on by selling third-party restaurants coupons through its website.

We currently maintain a $94.90 price estimate for OpenTable, which is about 10% below the stock's market price.

Continue reading OpenTable Gaining Momentum in Diners Seated

Schwab Acquisition Gives Customers More Options

Charles Schwab Corporation(SCHW) recently announced its decision to acquire optionsXpress in a friendly all-stock deal, as the company takes aim at the growing foreign exchange market. The move adds to Schwab's arsenal as it competes with firms like E-Trade(ETFC), Ameritrade(AMTD), Fidelity and Bank of America(BAC).

Our $19.74 price estimate for Charles Schwab implies a roughly 10% premium to the stock's market price.

Continue reading Schwab Acquisition Gives Customers More Options

Expedia Resumes American Airlines Relationship

EXPE logoExpedia (EXPE - option chain) shares are rising today after AMR Corp. (AMR) said it has reached an agreement with EXPE that will allow Expedia to offer American Airlines and American Eagle flights on its website. Expedia had pulled AMR fares from its site in December after AMR began pushing the use of direct links to its own sites. 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 EXPE.

EXPE opened this morning at $23.50. So far today the stock has hit a low of $22.74 and a high of $23.55. As of 12:05, EXPE is trading at $23.11 up 0.68 (3.0%). The chart for EXPE looks bullish and S&P gives EXPE a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Expedia Resumes American Airlines Relationship

Rare Earth Miner Molycorp Acquires 90% of AS Silmet

Molycorp (MCP) logoMuch has been written about rare earth metals. They are used in electronics, batteries and specialized magnets. China controls more than 90% of rare earth production and has put a ban on exports of the minerals.

The largest miner of rare earths outside China is Molycorp (MCP), a U.S.-based company. The company mines lanthanide and molydenum. Lanthanides include cerium, lanthanum and yttrium. These exotic elements are used in cell phones, computers, X-ray film and TV glass.

Continue reading Rare Earth Miner Molycorp Acquires 90% of AS Silmet

Analyst Calls: ADI, BRCM, C, CIEN, COP, INTC, MGM, OXY, QCOM, TXN ...

Analyst Upgrades

  • Citigroup (C) to outperform from market perform at Bernstein.
  • Cubist Pharma (CBST) to outperform from neutral at RW Baird.
  • Pentair (PNR) to buy from hold at Citigroup.
  • Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
  • SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
  • MGM Resorts (MGM) to neutral from Sell at Janney Capital.
  • Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
  • Mellanox (MLNX) to overweight from equal weight at Barclays.
  • ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
  • IDEX (IEX) to outperform from perform at Oppenheimer.
  • Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
  • Ctrip.com (CTRP) to positive from neutral at Susquehanna.
  • Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
  • Quicksilver (KWK) to outperform from market perform at BMO Capital.

Continue reading Analyst Calls: ADI, BRCM, C, CIEN, COP, INTC, MGM, OXY, QCOM, TXN ...

Bank of America Cuts First-Quarter GDP Forecast

Bank of America (BAC)Fourth quarter GDP ended on a uptrend, coming in at 3.1%. The state of the economy was healthy and it looked like growth would continue to match or exceed Q4. Based on that scenario, Bank of America (BAC) analyst Ethan Harris, forecast first-quarter 2011 GDP to come in at 3.3%.

But in the few short months of 2011, the world is getting turned upside down. The conflict in Libya has cut OPEC oil production and sent oil prices skyrocketing. In turn, the price of gasoline is nearing $4.00 per gallon. And food processors are raising prices due to higher raw commodity prices. These two factors have put a dent in the household budget.

Continue reading Bank of America Cuts First-Quarter GDP Forecast

BAC: Checking In on Bank of America's Stock

Bank of America (BAC)Bank of America (BAC) is a pretty big player in its industry; it's got brand equity -- everyone has heard of it. How is its stock looking these days?

At the time of writing, shares could be had for $13.44. The 52-week low for the company is $10.91; the 52-week high is $19.86. That's a tight range, and as one might imagine, this company has been a vehicle for traders trying to ride whatever volatility is available at any given time.

Continue reading BAC: Checking In on Bank of America's Stock

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

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Symbol Lookup
IndexesChangePrice
DJIA+8.6015,303.10
NASDAQ-0.283,459.14
S&P 500-0.911,649.60

Last updated: May 25, 2013: 08:40 AM

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