Wall Street Brief: Dells BIG Deal, Facebook Suits Up, Nokia’s DOWNFALL
Dell (NASDAQ:DELL) has emerged as the “strategic bidder” for Quest Software (NASDAQ:QSFT) after the company had announced a $25.50 per share buyout offer on Thursday, reported Reuters. The deal has a $2.15 billion value. In previous talks between the two companies, Dell had floated a $23-$26 per share buyout price but talks broke down.
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After Nokia’s (NYSE:NOK) shares fell 16 percent on Thursday, the company is looking more like a possible takeover target for buyers who see as still having a possible future with smartphones. Nokia is trading at a 38 discount to its net assets, along with the lowest price-sales multiple for communications-equipment makers; it also has more than 10,000 patents.
Hong Kong Exchanges & Clearing is the auction winner to purchase the London Metal Exchange with its BP 1.39 billion bid after beating out Intercontinental Exchange (NYSE:ICE). The deal represents the exchange’s first overseas acquisition, according to Bloomberg. For LME, the 135-year-old exchange manages over 80 percent of the global trade in industrial-metal futures and its sets benchmark prices for copper, aluminum and nickel.
Facebook (NASDAQ:FB) will point some fingers at Nasdaq (NASDAQ:NDAQ) for its weak post-IPO performance as it plans to file motion–possibly on Friday–to combine all the shareholder lawsuits against it, reported The New York Times. It is likely that the lead underwriters will join in the motion: Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM).
Research in Motion (NASDAQ:RIMM) had paid its former co-CEOs Jim Balsillie and Mike Lazaridis $8 million and $4 million, respectively, upon resigning earlier in the year amid the company’s declining earnings and stock price. RIM rationalized the payments on Thursday by saying that the pair “revolutionized the worldwide wireless industry…and forever changed how the world communicates.”
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Bank of America (NYSE:BAC) reports a quarterly dividend at $18.125 per share on 7.25% of the Series L Preferred Stock, which is payable July 30 and payable to shareholders of record on July 1. The stock accounts from nearly 2% of the PowerShares Financial Preferred Portfolio, up 10.4% year-to-date prior to dividends.
Apple Inc. (NASDAQ:AAPL) shares broke lower than the 10-day moving average.
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Facebook, Inc. (NASDAQ:FB): The New York Times reports, Facebook will most likely file a court motion attempting to consolidate all shareholder lawsuits pertaining to its faulty IPO. The newspaper, citing an unnamed source, adds that the moves expects to see information regarding Nasdaq’s (NASDAQ:NDAQ) role in the IPO issues, and the website may even place a bit of blame on the stock exchange.
Nokia Corporation (NYSE:NOK) was downgraded by Credit Suisse due to continuous pressures regarding competition and slower Windows Phone traction. The price target was dropped from $4. 50 to $2.
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General Moly, Inc. (AMEX:GMO): In a filing dated Wednesday, the Nevada State District Court affirmed the state engineer’s order which approved water rights for the Mt. Hope project located in Nevada. It also approved other issuance of permits related to the project. Shares of General Moly, Inc. are trading 0.3% lower today.
International Game Technology (NYSE:IGT): Ana analyst estimates that for every 3M shares repurchased by the company, at current stock price, International Game Technology adds approximately a penny to earnings, meaning that analysts may need to increase estimates for the company’s FY13. On average, analysts believe the stock will reach $20, an upside of over 35%, resulting from states such as Kansas and Maine approving more casinos and slots as a way to increase revenue. The stocks yield remains around 1.8%. Shares of International Game Technology are trading 3.64% lower today.
The Kroger Co. (NYSE:KR) has been upgraded by Barclays Capital to Overweight from Market Weight following the company’s impressive Q1 results. The company has seen 34 consecutive quarters of positive same-store sales growth and a continuous repurchasing program, causing the company to seem very consistent. Shares of The Kroger Co. are trading 0.75% higher today.
Smithfield Foods, Inc. (NYSE:SFD) has been given an Outperform rating by Credit Suisse, explaining that recent selloff is excessive and causes a buying opportunity. Smithfield’s margins were slammed by low fresh pork prices in FQ4, but analysts believe domestic prices will be lifted by strong exports late this year. Shares of Smithfield Foods, Inc. are trading 1.57% higher today.
Piedmont Natural Gas Company Inc. (NYSE:PNY): Shares of Piedmont Natural Gas Company Inc. are trading 0.34% higher today.
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SandRidge Mississippi Trust (NYSE:SDT) has began an offering of 996K share Block Trade with a price of $26.50. Morgan Stanley was sole book running manager of the offering. Shares of Sandridge Mississippian Trust I are trading 5.89% lower today.
BroadVision, Inc. (NASDAQ:BVSN) soars without news. As of yesterday’s close, the company’s share fell 82% from their highs in March. In early trading Broadvision has outdone its 10-day MA, with resistance at $11.38. Shares of BroadVision, Inc. are trading 23.23% higher today.
Spectra Energy Corp. (NYSE:SE) CEO Greg Ebel claims that Spectra’s $1.2B project inetended to pump more natural gas into Northern New Jersey and New York City could save residents in the area approximately $700M per year in energy costs. Shares of Spectra Energy Corp. are trading 0.54% higher today.
Sirius XM (NASDAQ:SIRI): Market Foundations releases new information about Sirius XM Radio Inc regarding its role withing the service industry. Sirius XM Radio uses two satellite radio systems to provide music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States without a subscription. Subscribers can also obtain certain music and channels via the Internet, including access through mobile apps.
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Mid-Day BUZZING STOCKS: Microsoft to Announce Tablet Plans, Facebook Investors Gain HOPE
Shares of Microsoft Corp. (NASDAQ:MSFT) are up over 2 percent this afternoon. Sources tell AllThingsD that the tech company will unveil plans to make its own Windows 8 tablets at an L.A. event on Monday. AllThingsD says, “Sources say that Microsoft concluded that it needs its own tablet, with the company designing both the hardware and software in an effort to better compete against Apple’s (NASDAQ:AAPL) strengths. Microsoft’s tablets may include machines running ARM-based processors as well as models running on traditional PC processors, sources said.”
GameStop Corp. (NYSE:GME) shares dropped nearly 3 percent in early trading, though the stock has evened out this afternoon. A new report by the NPD shows that U.S. retail sales of video-game hardware, software and accessories plunged 28 percent in May to $517 million. It is the sixth consecutive month of declines.
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Investors appear to have more confidence in Facebook’s (NASDAQ:FB) ability to monetize users. Shares of the social-media giant edged have edged up 2.26 percent so far today, after jumping 3.74 percent on Thursday and breaking through resistance at $28 per share. Facebook recently announced plans to launch Facebook Exchange, a real-time bidding platform for advertising on its site.
Dendreon Corp. (NASDAQ:DNDN) shares increased 0.80 percent in morning trading, but had problem holding onto gains, and fell more than 1 percent by mid-afternoon. John Johnson, chief executive officer, has talked of the possibility of the company seeking a marketing partner in Europe for its Provenge cancer therapy in an effort to boost sales. Shareholders have been unhappy about the biotechnology company’s falling fortunes, with the stock tumbling as much as 82 percent in the past year.
Family Dollar Stores Inc. (NYSE:FDO) shares were down 0.70 percent in afternoon trading The company received a downgrade from Barclays (NYSE:BCS) to Equalweight from Overweight, with a price target of $73 on shares. Shares hit as high as $74.73 on Thursday, representing a new all-time high, and currently traded just shy of $73.
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