Wednesday, August 18, 2010

Daily Markets - Life Acquires Ion Torrent

Daily Markets - Life Acquires Ion Torrent

Life Acquires Ion Torrent

Posted: 18 Aug 2010 12:05 PM PDT

Over the past few years, Life Technologies (LIFE) has been expanding its product portfolio through acquisitions; the latest being privately held Ion Torrent, a DNA sequencing company, for $375 million in cash and stock. In addition, Life is also liable to pay $350 million if certain milestones are met through 2012. The transaction, expected to be completed by the fourth quarter, is subject to regulatory approvals.
The acquisition of Ion Torrent will further strengthen Life's Genetic … [visit site to read more]

FDA Panel To Review Eli Lilly’s Cymbalta

Posted: 18 Aug 2010 12:05 PM PDT

Eli Lilly's (NYSE:LLY) Cymbalta will be coming up for review before the US Food and Drug Administration's (FDA) Anesthetic and Life Support Drugs Advisory Committee on Aug 19, 2010. Eli Lilly is seeking to expand Cymbalta's label so that the product can be used for the management of chronic low back pain and treatment of chronic pain due to osteoarthritis.
Concerns Raised Regarding Liver Damage
The FDA advisory panel will vote on Cymbalta's efficacy, safety and overall risk-benefit profile … [visit site to read more]

Broadridge Acquires NewRiver Inc

Posted: 18 Aug 2010 12:05 PM PDT

New York-based global outsourcing service provider Broadridge Financial Solutions Inc. (NYSE:BR) inked a deal to acquire NewRiver Inc. for a total consideration of roughly $77.0 million.
 
The terms of the agreement were approved by the Board of Directors of each company. Broadridge expects the deal to close by the end of August 2010 and to be accretive to its earnings by fiscal 2011.
 
Founded in 1995, NewRiver pioneered the first electronic prospectus and has been helping clients … [visit site to read more]

Earnings Scorecard: DIRECTV

Posted: 18 Aug 2010 11:35 AM PDT

DIRECTV (DTV) posted excellent financial results for its second quarter 2010, beating the Zacks Consensus Estimate. The solid results were thanks to double-digit revenue growth and significant margin expansion.

During the reported quarter, the company started two new services, Whole Home DVR, as well as a bundle offering of three dedicated 3D channels. The recent earnings announcement, subsequent analyst estimate revisions and the Zacks ratings for both the short-term and the long-term … [visit site to read more]

Rockwell Wins Air Force Contract

Posted: 18 Aug 2010 11:35 AM PDT

Defense contractor Rockwell Collins Inc. (NYSE:COL) received a contract worth $140 million from the U.S. Air Force to develop, integrate and deliver the Common Range Integrated Instrumentation System (CRIIS), an advanced military test range system. The total value of the contract can exceed $300 million, contingent upon certain conditions.
 
This new CRIIS program will enable the Department of Defense (DoD) to provide vital information relating to Time, Space, and Position Information … [visit site to read more]

Judge Huvelle: “Why Would I Find This Fair And Reasonable?”

Posted: 18 Aug 2010 11:09 AM PDT

Wall Street has a funny way of meting out justice. All too often, investors are left with little more than 'caveat emptor' when it comes to engaging large Wall Street institutions. Beyond that, the SEC and FINRA are often critiqued for being more closely aligned with the industry than with investors. I was reminded of this fact when reading last week that the SEC settled with Citigroup (NYSE:C) for a token $75 million regarding Citi (NYSE:C)'s disclosure, or lack … [visit site to read more]

Tenet Repurchases Senior Notes

Posted: 18 Aug 2010 11:05 AM PDT

Tenet Healthcare Corporation (NYSE:THC) declared a tender offer to repurchase up to $800 million aggregate principal amount of its outstanding 7.375% senior notes due in 2013. Tenet will close its tender offer on August 30.
 
The aggregate principal amount of the notes to be purchased will be limited to $800 million. If it exceeds the limit, the notes purchased will be distributed on a pro rata basis as per the terms of purchase.
 
Following the announcement of the offer, about 78.3% of … [visit site to read more]

Earnings Scorecard: Chesapeake Energy

Posted: 18 Aug 2010 11:05 AM PDT

Despite sharper-than-expected quarterly results and management guidance for solid production growth, shares of Chesapeake Energy Corporation (NYSE:CHK) declined approximately 24% year-to-date. While we believe the natural gas-centric negative sentiment played a vital role in this downturn, the company's growing focus on liquids is commendable.
 
With an over ten-year drilling inventory in core shale gas plays and a diverse onshore U.S. asset portfolio (13.9 million net acres), we believe … [visit site to read more]

Apache Offers Notes To Get Funding

Posted: 18 Aug 2010 11:05 AM PDT

U.S. energy firm Apache Corp. (NYSE:APA) priced a public offering of 30-year bonds – 5.10 percent notes due 2040 – at $1.5 billion in aggregate principal amount. The company plans to use the net proceeds from this offering to pay back the outstanding indebtedness under its bridge loan facility and commercial paper program, which were used to finance the purchase of certain assets from beleaguered oil giant BP Plc (NYSE:BP). The offering is expected to close on August 20, 2010.
On August 10, … [visit site to read more]

GM Recalls 250,000 Crossovers

Posted: 18 Aug 2010 11:05 AM PDT

General Motors (MTLQQ) plans to recall about 250,000 crossover globally in order to inspect and fix their second-row seat belts. The recall involves 2009-2010 models of the Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook. These vehicles are sold in the U.S., Canada, Mexico and elsewhere.
 
The automaker noticed that there are chances of the seat-belt buckle getting damaged when the seats are pushed back to their normal position. As a result, this could cause the buckle … [visit site to read more]

Forex Trading: GBPUSD Bases Again And Moving Up. 1.5621-31 Resistance

Posted: 18 Aug 2010 10:48 AM PDT

The GBPUSD held the 200 day MA earlier today. The surge higher on the back of MPC meeting minute relief, sent the pair toward the highs from yesterday.  Failure to take out the highs, sent the price back down and the pair fell below the 100 hour MA in the process (and old trendline channel). 
In the last three hours the price has rebounded once again and looks toward resistance at 1.5621 (the underside of trendline resistance that was broken today but failed)  See chart … [visit site to read more]

AMSC Acquires 25% Of Blade Dynamics

Posted: 18 Aug 2010 10:35 AM PDT

Power technology company American Superconductor Corporation (NASDAQ:AMSC) acquired a 25% stake in Blade Dynamics Ltd. for $8 million in cash, and will have one seat on the Blade Dynamics Board of Directors.
Blade Dynamics Ltd. is a designer and manufacturer of advanced wind turbine blades based on proprietary materials and structural technologies. The company has developed Bladeskyn, a surface material that extends the lifetime and significantly lowers lifecycle costs for wind turbine blades. The … [visit site to read more]

Jamba Misses Estimates

Posted: 18 Aug 2010 10:35 AM PDT

Jamba Inc.'s (NASDAQ:JMBA) second quarter 2010 earnings of 2 cents per share missed the Zacks Consensus Estimate of 6 cents, but were higher than the loss of 10 cents in the prior-year quarter.

The top line of the company continues to struggle, as consolidated revenues fell 10.9% year over year to $74.1 million, which was below the Zacks Consensus Estimate of $75.0 million. Sales at company-operated restaurants were down 11.5% to $72.3 million, due to a reduction in the number of … [visit site to read more]

Gentiva Seals Odyssey Deal

Posted: 18 Aug 2010 10:35 AM PDT

Going ahead with its scheduled program, Gentiva Health Services Inc. (NASDAQ:GTIV) completed the acquisition of Odyssey HealthCare Inc. (NASDAQ:ODSY) on Tuesday for about $1.0 billion. This constituted an all cash transaction of about 370.4 million for Odyssey's common stock at $27 per share. Gentiva reached a definitive agreement for the purchase in May 2010.

In order to fund the acquisition, Gentiva vended off its 4-year senior notes worth $325 million in the 144A private placement market on August … [visit site to read more]

SID Downgraded To Underperform

Posted: 18 Aug 2010 10:35 AM PDT

We recently downgraded our recommendation for Companhia Siderurgica Nacional (NYSE:SID) or CSN from Neutral to Underperform.
 
Second Quarter Highlights
 
On August 10, Companhia Siderurgica Nacional, one of the leading Brazilian steel makers, announced second quarter 2010 net income that surged 167% year over year and 85% sequentially to R$894 million (US$496.7 million), or R$0.59 per share (US$0.33 per ADR). Earnings per ADR were in line with the Zacks Consensus Estimate of $0.33 … [visit site to read more]

CACI International Beats Estimates

Posted: 18 Aug 2010 10:05 AM PDT

CACI International Inc. (CACI) reported revenues of $848.7 million in the fourth quarter of fiscal 2010, gaining 16.4% year over year and surpassing the Zacks Consensus Estimate of $805 million. 
The growth in revenues was driven by organic growth of 14.3% due to strong performances of the defense and intelligence businesses. 

Contract funding orders in the fourth quarter were $895 million, a 16.0% increase year over year. As of June 30, 2010, total backlog was $6.8 billion, down … [visit site to read more]

Windstream To Acquire Q-Comm

Posted: 18 Aug 2010 10:05 AM PDT

Windstream Corp. (NYSE:WIN), the fifth largest local telephone carrier in the U.S., agreed to buy Q-Comm Corp., a privately held fiber-optic network operator, for $515 million plus debt. The acquisition is in sync with the consolidation trend in the telecommunication sector.
Windstream will acquire Q-Comm’s two subsidiaries, Kentucky Data Link Inc. (KDL), a fiber services provider in 22 states, and Norlight Inc., which provides local exchange services mainly in the Midwest.
As a part … [visit site to read more]

In A Complex World, DATATRAK International Leads The Way

Posted: 18 Aug 2010 10:05 AM PDT

DATATRAK International, Inc. (NASDAQ:DATA) is a technology and services company that provides electronic clinical solutions for the clinical trials industry. Its software suite is used to collect, review, transmit, and store clinical trial data electronically.
In a recent presentation at the OneMed Forum in New York, CEO and Chairman Laurence P. Birch offered a quote from the Tufts Center for the Study of Drug Development that really hit home:
“Growing clinical trial complexity continues to … [visit site to read more]

Electronic Arts Comes With A Launch

Posted: 18 Aug 2010 10:05 AM PDT

 
Video game developer and publisher Electronic Arts Inc. (NASDAQ:ERTS) announced the launch of two special editions of the action game Crysis 2.
 
Developed by Frankfurt-based Crytek GmbH, Crysis 2 Limited Edition and the Crysis 2 Nano Edition feature premium packaging and special unlocks in the Crysis 2 multiplayer game.  Currently, both editions are available for pre-order in limited quantities. 

We believe Crysis 2 has been a considerably successful franchisee for Electronic … [visit site to read more]

Earnings Scorecard: Autodesk

Posted: 18 Aug 2010 09:35 AM PDT

Autodesk Inc. (NASDAQ:ADSK), a leading provider of 2D and 3D designs, reported better-than-expected second quarter 2011 earnings and revenues, beating the Zacks Consensus Estimate and its own guidance. Results were boosted by increased revenues, growth in international markets, strong year-over-year growth in maintenance billings and commercial new licenses along with impressive cost controls. 
Autodesk provided an in-line third quarter guidance. Following the company's strong second … [visit site to read more]

Bob Evans Misses, Reaffirms Outlook

Posted: 18 Aug 2010 09:35 AM PDT

Bob Evans Farms Inc. (NASDAQ:BOBE) announced first quarter 2011 earnings of 41 cents per share, which missed the Zacks Consensus Estimate of 44 cents and were also 21% below last year’s 52 cents. The lower-than-expected results were due to cost inflation in the food product segment and challenges at the top line in the restaurant segment.
The company posted a 3.9% year-over-year drop in net sales to $412.6 million, as combined same store-sales fell 4.6%, resulting from a 3.5% same store-sales … [visit site to read more]

Forex Trading: EURUSD. The Case For A Move Higher.

Posted: 18 Aug 2010 09:32 AM PDT

Alright.  The market did not do what it should have done this morning.   Today the price tested the 100 hour MA (blue line in chart above).  It even broke the line (100 hour at 1.2833 low 1.2822) but just could not muster the momentum to the downside.  From that low, the price surged higher and took out the weeks high at 1.2915.  The high for the day extended to 1.2921, six pips above the prior high.  I expected a more substantial move to the upside.  … [visit site to read more]

Forex Trading: USDJPY Holds The Line(s)

Posted: 18 Aug 2010 09:23 AM PDT

For those who follow the commentary on this page know about 85.37 and 85.18.  It represents a range that has contained the USDJPY for a number of hourly bars over the last few days. Yesterday the market took off to the upside, making its way to the 100 and 200 hour MA levels, but ran into sellers against the level.  So what we know is the market is scared to break lower for fear of potential  BOJ intervention, yet at the same time, they still prefer the … [visit site to read more]

Gold Mining Stocks Looking Good: US Gold Corporation, Yamana Gold, Gold Fields, Gammon Lake Resources, Nevsun Resources

Posted: 18 Aug 2010 09:20 AM PDT

With Gold making a move to the upside, I thought it would perhaps be useful to have a look at some gold miners that are looking good here.

US Gold Corporation (UXG)

Gold Fields (NYSE:GFI)

Gammon Lake Resources (GRS)

Nevsun Resources (NSU)

Yamana Gold … [visit site to read more]

An ETF Strategy For An Uncertain Market

Posted: 18 Aug 2010 09:17 AM PDT

As investors look for ways to add diversification and alpha, implementing the 130-30 strategy could be a way to go.
The 130-30 strategy uses financial leverage by shorting poor performing stocks and purchasing shares that are expected to have high returns.  A 130-30 ratio implies shorting stocks up to 30% of the portfolio value and then using the cash from the short position to take a long position in the stocks that are expected to outperform the market. 
The ProShares 130/30 fund … [visit site to read more]

BHP Billiton Bets On Farming Boom With Hostile Bid For Potash

Posted: 18 Aug 2010 09:16 AM PDT

BHP Billiton’s (NYSE:BHP) $38.56 billion bid for Potash Corp. of Saskatchewan Inc. (NYSE:POT) is just the latest episode in what’s likely to be a continuing surge of merger-and-acquisition (M&A) activity in the agribusiness sector.

Canada-based Potash, the world’s largest producer of potash, yesterday (Tuesday) rejected an unsolicited takeover bid from the Australia mining giant, calling the offer “grossly inadequate.”

The fertilizer company also quickly adopted a so-called … [visit site to read more]

Tech Data Expands Product Offering

Posted: 18 Aug 2010 09:05 AM PDT

Tech Data Corporation (NASDAQ:TECD) will be offering 3D TVs and Lenovo's IdeaPad laptop PCs to retailers in the consumer electronics market, thereby expanding its consumer electronics product offering and diversifying its customer base. 

The consumer market had been sluggish in 2009; however, we believe the increasing popularity of 3D TVs will drive a higher demand for consumer electronics, thereby boosting Tech Data's profitability over the long term.
 
Tech Data offers authorized … [visit site to read more]

Union Pacific To Outperform

Posted: 18 Aug 2010 09:05 AM PDT

We have upgraded our recommendation for Union Pacific Corp. (NYSE:UNP) to Outperform, following its second quarter 2010 financial results, which were far ahead of the Zacks Consensus Estimate. This excellent performance was achieved through best-ever operating ratio, massive growth in business volume, cost control and pricing gains.
 
Second quarter 2010 operating ratio was at an historic high-level of 69.4%, compared with 77.4% in the prior-year quarter. This is the first … [visit site to read more]

Cincinnati Financial Hikes Dividend

Posted: 18 Aug 2010 09:05 AM PDT

Property and casualty insurer Cincinnati Financial Corp. (NASDAQ:CINF) on Monday announced a 0.5 cent increase in quarterly dividend to 40 cents per share. The increased dividend will be paid on October 15, 2010 to shareholders of record as of September 22, 2010.
On the basis of the increase, the stock of Cincinnati Financial has an attractive dividend yield of approximately 6%. Management has raised dividend in each of the past 50 years, with an average growth of 6% annually for the past five … [visit site to read more]

Too Late To Chase The Gold Rally?

Posted: 18 Aug 2010 09:04 AM PDT

Today will mark the 15th day of the current daily cycle in gold. Gold has been up 13 out of the last 15 days. It’s getting overbought.

Usually the daily cycle runs about 20 -25 days. At this point it is probably too late to chase the move.

There are also a couple of gaps on the GLD chart that need to be filled. The first one is filling today. I expect both will get filled at some point during the coming cycle correction.

If you already have a position then just hang on. If … [visit site to read more]

GBP/USD: A Rally In The Making

Posted: 18 Aug 2010 09:02 AM PDT

The Pound had seen the greatest amount of volatility coming behind the BOE minutes. Despite the fact that the BOE minutes came nothing short of predictable, with merely Andrew Sentence dissenting, the Pound gained strength. The reason to the rally was a more hawkish stance by the Committee than previously. The Committee taking a break from its previous stance which denied any possibility of inflationary pressures grew wearier of possible escalation in prices. The following came as a god … [visit site to read more]

Cash Flow Statement

Posted: 18 Aug 2010 08:59 AM PDT

How to read a statement of cash flows.
A more advanced reader might want to check out this excellent book (which the author is currently reading), Creative Cash Flow Reporting: Uncovering Sustainable Financial Performance.
Cash is King
After a firm sells a product and then after deducting the cost of providing the product including raw material, labor cost and other expenses from the revenue the firm's earning or net income can be ascertained. If the firm was paid in cash for the sales then … [visit site to read more]

Hot Stock News For Wednesday 18 August: BHP Billiton, Potash, Novartis, UBS

Posted: 18 Aug 2010 08:56 AM PDT

BHP Billiton (NYSE:BHP) - Co.’s bid for Potash is inadequate, says Potash (NYSE:POT) shareholder Jarislowsky Fraser. Co. says it will go hostile with Potash, and will make offer to directly to Potash shareholders. Co. says deal will add to earnings in second full fiscal year, and the offer is open to acceptance until October 19. Moody’s says closely monitoring co. bid for Potash. If major debt funded takeover offer is made, BHP ratings could be placed on negative watch. (RTRS)

UK

Legal … [visit site to read more]

Potash Discards BHP’s Offer

Posted: 18 Aug 2010 08:35 AM PDT

Shares of Potash Corporation of Saskatchewan Inc. (NYSE:POT), the world's largest fertilizer company by capacity, shot up 28% and closed at $143.17 on August 17, 2010 after rebuffed mining giant BHP Billiton Ltd's (NYSE:BHP) hostile acquisition proposal. It was a $38.6 billion (all in cash) offer, which Potash turned down, citing that the offer grossly undervalues the company and its future growth prospects.
 
The fertilizer industry is witnessing a consolidation phase with a steady rise in … [visit site to read more]

Staying Positive On Cytomedix

Posted: 18 Aug 2010 08:35 AM PDT

In April 2010, we initiated coverage of Cytomedix (GTF) with an 'Outperform' rating and near-term price target of $1.50 per share. At today's price, we do not believe the market has come to grips with the transformation underway at Cytomedix, thanks to the recent acquisition of the Angel Whole Blood Separation System and ActivAT Autologous Thrombin Processing Kit from the Sorin Group. Between the pent-up demand for the product and meaningful synergies with AutoloGel, investors should … [visit site to read more]

Deere Beats Again

Posted: 18 Aug 2010 08:35 AM PDT

Deere & Co. (NYSE:DE) delivered third-quarter earnings per share (EPS) of $1.44, moving ahead of the Zacks Consensus Estimate of $1.25 as well as EPS of 99 cents last year. The outperformance was driven by positive conditions in the U.S. farm sector, particularly in terms of demand for large equipment, somewhat offset by increased postretirement benefit costs.
Deere's worldwide total sales increased 16% year over year to $6.84 billion, beating the Zacks Consensus Estimate of $6.81 billion. … [visit site to read more]

Poster Of The Day

Posted: 18 Aug 2010 08:19 AM PDT

Exhibit A: 28,000 deaths in Mexico related to the Drug War and organized … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 18 Aug 2010 08:17 AM PDT

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: The Downside Prevails

Posted: 18 Aug 2010 08:17 AM PDT

Update on supports and resistances. … [visit site to read more]

Energy Transfer Partners To Offer Common Units

Posted: 18 Aug 2010 08:05 AM PDT

Energy Transfer Partners L.P. (NYSE:ETP) — a natural gas and propane gas master limited partnership (MLP) – commenced an underwritten public offering of 8 million common units representing limited partner interests. The partnership also intends to provide the underwriters with a 30-day option to purchase up to 1.2 million additional common units to cover over-allotments, if any.   
Energy Transfer plans to use the net proceeds from this offering to pay back the outstanding debt … [visit site to read more]

Medtronic Grows Biologics Business

Posted: 18 Aug 2010 08:05 AM PDT

Medtronic (NYSE:MDT), one of the largest medical devices companies, seeks to strengthen its biologics business by its decision to acquire Osteotech Inc (NASDAQ:OSTE) for $6.50 per share or $123 million in total. The offer price represents a 65% premium to Monday's closing price. The transaction is subject to shareholder and regulatory approvals.
After Cardiac Rhythm Disease Management, the next biggest segment in Medtronic is Spinal, which contributed 22% to its top line in fiscal 2010. This … [visit site to read more]

Lockheed Martin Gets Follow-on Contract

Posted: 18 Aug 2010 08:05 AM PDT

U.S. defense goliath Lockheed Martin Corporation (NYSE:LMT) got a follow-on contract worth $260 million from the U.S. Army to produce the combat-proven Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS) systems, also known as Arrowhead, used in Apache attack helicopters.
The contract will also require the production of Arrowhead kits and spares. Under the contract, which extends through April 2013, Lockheed will deliver more than 1,000 systems to the U.S. Army … [visit site to read more]

Value Investing Congress: Special Discount For Value Walk Readers!!!

Posted: 17 Aug 2010 08:49 AM PDT

I am proud to announce that Value Walk is partnering with the upcoming href="http://www.valueinvestingcongress.com/landing/n10/partners/valuewalk/7.22.10.php?utm_source=VK&utm_medium=BLOG&utm_campaign=N10VK1&ocode=N10VK2″ target="_blank"> Value Investing Congress> which will take place in New York City on October 12 and 13. The Value Investing Congress' mission is to create an interactive experience, in which people can learn serious value investing skills.
All … [visit site to read more]
at

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