Wall Street Brief: Apple AWARDS TomTom, JPMorgan IGNORED Risks
Apple Inc. (NASDAQ:AAPL) signed a global mapping-data accord with TomTom (TMOAF.PK) just one day after announcing it got rid of Google (NASDAQ:GOOG) Maps. It will now use its own functionality which includes 3D models of cities and turn-by-turn navigation. At WWDC on Monday, CEO Tim Cook also unveiled Apple’s MacBook update and Facebook’s (NASDAQ:FB) iOS 6 integration.
Featured Reading: WWDC Recap: Everything You Need to Know>>
Two years ago, JPMorgan’s (NYSE:JPM) top executives had been alerted to the risks coming from the firm’s London trading desk, reported The Wall Street Journal. In 2011, the CIO executives put together a plan to get rid of some large trades but even then, it didn’t workout. Perhaps Jamie Dimon’s Wednesday Congressional testimony will be more interesting than we initially thought.
In late 2011, Microsoft (NASDAQ:MSFT) had contemplated an offer for Nokia (NYSE:NOK) and reviewed its books, but both companies decided against a sale, reported The Register. The story speculated that Microsoft would prefer a lower value for Nokia before making a bid on it. On Monday, Nokia dropped 8.3 percent after Samsung squashed takeover rumors.
Berkshire Hathaway’s (NYSE:BRKA) (NYSE:BRKB) NetJets has a $9.6 billion Bombardier (BDRAF.PK, BDRBF.PK) and Cessna order to buy 425 new aircraft. NetJets CEO Jordan Hansell believes a rebound in luxury flights is coming after his predecessor David Sokol slashed the fleet in response to less demand.
Most of MF Global’s (MFGLQ.PK) senior executives were not registered with the Commodities Futures Trading Commission and can’t be charged failure to supervise in response to the firm’ implosion. Legal experts have said these types of failures are usually easier to show than intentional wrongdoing. Former CEO Jon Corzine was registered by the agency.
Early Buzz: Apple Investors Raise the Bar, Kors Surges 5%, Boeing Flies Higher
Apple Inc. (NASDAQ:AAPL) shares edged .46 percent lower after the opening bell. The tech giant held its annual Worldwide Developers Conference on Monday, which unveiled its new MacBook line with Retina display and iOS 6. The new operating system will integrate social-sites such as Facebook (NASDAQ:FB) and Yelp Inc. (NYSE:YELP). Shares of Facebook are up 1% today while Yelp trades lower 3%. So far, it appears Apple investors are awaiting the “wow me” product moment at WWDC, unless lots of pre-investment calculating is happening at the moment. Time will tell.
Don’t Miss: Will Apple Pull the Plug on Garmin?
Shares of JPMorgan Chase and Co. (NYSE:JPM) jumped nearly 1 percent in early trading, despite the WSJ reporting that the bank knew about the risky practices in London two years before the now infamous $2 billion trading loss. The journal writes, “Interviews with more than a dozen current and former members of the bank’s Chief Investment Office, the unit responsible for the losses, indicate that discussions about reining in London traders started as early as 2010.”
Michael Kors Holdings (NYSE:KORS) shares surged more than 5 percent in early trading. The company announced its fourth-quarter profit came in at $43.6 million (22 cents per share), compared to $13.6 million (10 cents per share) a year earlier. Revenue also increased to $380 million, compared to $240 million in the same period a year earlier.
Boeing Co. (NYSE:BA) shares gained 1.68 percent after the opening bell. Bernstein upgraded the company to Outperform from Market Perform. The firm also raised its price target to $92 from $85 per share, citing the recent decline as an “overreaction to macroeconomic difficulties.”
Investor Insight: SURPRISE! Forget the Hardware, Apple is a Software Company
4 Stocks in the Buyer’s Trading Spotlight as FactSet Research Falls
Arena Pharmaceuticals‘ (NASDAQ:ARNA) Lorcaserin, an investigational pharmaceutical candidate planned to address weight management, is a recently developed chemical entity that is thought to serve as a selective serotonin 2C receptor agonist. This receptor originates in the brain, including the hypothalmus, a region thought to be integral in the regulation of appetite and metabolism. Arena possesses patents that cover Lorcaserin in the U. S., Europe and other regions that in most situations are able to persist into 2023 without considering any patent term extensions or additional exclusivity Arena might attain. The FDA is expected to rule on Lorcaserin by June 27.
Garmin Ltd.‘s (NASDAQ:GRMN) shares are further reduced now due to Apple’s TomTom deal, support at $37.36. Doughterty upgraded the company’s shares to Buy from Neutral, referencing valuation after reports that Apple will permit new software to be downloaded to iPhones and iPads that includes a new Maps app. Dougherty holds that shares are oversold and that the possible impact may be between $0 and $3 per share. Price target is $47. Garmin shares are trading higher by 3.65% today.
Featured Reading: Will Apple Pull the Plug on Garmin?
FactSet Research Systems Inc. (NYSE:FDS): Shares of FactSet are trading lower by 9.34% today. FQ3 EPS of $1.05 beats by $0.01, with revenue of $202M (+10.2 Y/Y) in-line. Shares of FactSet Research are trading 9.43% lower today.
Michael Kors Holdings Ltd (NYSE:KORS): Net profit for Michael Kors is up to $43.6M from $13.6M, thanks to impressive performance across the clothing company’s retail, wholesale and licensing ops. Guidance is: FQ1 EPS of $0.18-$0.20 vs. consensus of $0.17, and revenue of $360M-$370M vs. $323.98M; FY EPS of $1.08-$1.12 vs. $0.69, and revenue of $1.7B-$1.8B vs. $1.28B. Shares have risen 13.4%. The company is reporting plans to open 70 stores in the FY. Shares of Kors are trading 4.48% higher today.
Frontier Communications (NYSE:FTR) is providing broadband service to around 780 more households in the Fort Gay area of Wayne County. Frontier’s work there symbolizes the company’s dedication to expand broadband service in West Virginia. The company has provided such service to 117,000 more households in that state since July 2010, when it took on markets in 14 states from Verizon (NYSE:VZ).
4 Stocks Sizzle Higher With Investors, Zynga ZAPPED to New Lows
Bank of America (NYSE:BAC): In the face of dealing with more rigorous capital standards based on Basel III regulations, some American banks are looking into potentially using intangible assets held by their borrowers (like patents and trademarks) to lower estimates of anticipated losses in case of a default, to reduce the risk weight of their loans and general capital requirements. This is according to reports by Financial Times. Shares of Bank of America are trading 1.58% higher today.
Apple Inc.’s (NASDAQ:AAPL) renewed MacBook Pro and Air products have impressed Cannacord, which predicts their new retina display will raise Mac sales in general. Also, Cannacord is excited by iOS6 features and reports that it will keep extending its ecosystem leadership vs. competitors. Cannacord rates Apple shares at Buy. JMP Securities thinks that these announcements by Apple were for the most part expected by investors, who were let down by no news about Apple TV. It holds to a Market Perform rating on the stock. BMO Capital thinks the new MacBook portfolio ups Apple’s competitive edge over PC manufacturers, and that Apple is maintaining its leadership in the notebook arena. BMO is sticking to a $695 target and Outperform rating on the stock. Sterne Agee plans for Apple’s revised Maps app, more social networking integration, and enhanced focus on the market in China to make adoption of the Apple platform more dynamic; it holds to a $780 target and Buy rating on the shares. Shares of Apple are trading 0.84% higher today.
Featured Reading: WWDC Recap: Everything You Need to Know>>
Facebook, Inc. (NASDAQ:FB): Zynga (NASDAQ:ZNGA) is down to new lows after a further negative note from Cowen’s Doug Creutz, who announced that the company’s daily active users plummeted for the second month in a row after falling usage for almost all its games. Creutz surmises interest in PC-based Facebook (NASDAQ:FB) gaming might have hit its high as users turn attention to mobile gaming. Also, more PC competition might be negatively affecting Zynga. Facebook shares are trading 2.27% higher today. Zynga shares are trading at $5 per share today and hit a new 52-week low of $4.92 in today’s trading action.
AT&T, Inc. (NYSE:T): Verizon (NYSE:VZ) debuted its looked-forward-to shared data plans. These will be combined with unlimited voice and text messaging, and are expensive: a user desiring to share 2GB/month between a smartphone and a tablet, for instance, must pay $110 per month. AT&T has indicated it will provide shared data plans as well. AT&T shares are trading 0.19% higher today.
Texas Instruments Takes Off Among Super Active Stocks Tuesday
Texas Instruments Inc, (NASDAQ:TXN): Texas Instruments estimates were lowered by UBS due to concerns about weakening demand. Shares hold a Neutral rating. As a result of continues rising orders and backlog, National Securities actually upgraded Texas Instruments with a $33 price target. Shares of Texas Instruments Incorporated are trading 2.26% higher today.
Finisar Corporation (NASDAQ:FNSR): Finistar reports a Q4 adjusted EPS of 21c, with a consensus of 21c, and a Q4 revenue of $239.9M, with a consensus of $242.62M. The company sees the current macroeconomic outlook as uncertain, and it is driven by new European developments and slower economic growth in China. Finistar states that worldwide telecom spending has been soft. Shares of Finisar Corporation are trading 1.78% higher today.
A Closer Look: Finisar Earnings Cheat Sheet>>
Ramtron International (NASDAQ:RMTR): Cypress Semi (NASDAQ:CY) has submitted a proposal to Ramtron in which Cypress Semi would acquire all of Ramtrons outstanding stock for $2.48 per share in cash. This represents a 37% premium over Ramtron’s closing stock price on June 11. Ramtron is up 26% premarket. Shares of Ramtron International are trading 33.70% higher today.
ZaZa Energy Corp (NASDAQ:ZAZA): The company has simultaneously signed a Heads of Agreement with Hess Corp. (NYSE:HES) in which a transaction will cause the termination or modification of the agreements of the Parties in Texas and France, amending the existing exploration and development agreement ZaZa has with Hess in Texas for which ZaZa has already been paid a cash consideration totaling $15M, intends to pay down $33M of its $100M senior secured notes which are due by 2017, and has influenced Jefferies (NYSE:JEF) to head a joint venture process for ZaZa’s Eagle Ford core as well as Woodbine and Eaglebine assets. Shares of ZaZa Energy Corp are trading 5.05% lower today.
EnergySolutions, Inc. (NYSE:ES): EnergySolutions has downgraded from Outperform to Market Perform at Avondale, and the price target falls from $8 to $3. However, shares of EnergySolutions, Inc. are trading 4.94% higher today.