Wall Street Brief: Judge on Apple-Samsung OVERLOAD, Best Buy’s Biggest Stockholder OUT
A judge has “tentatively” dismissed the intellectual property trial scheduled to begin on Monday between Apple Inc. (NASDAQ:AAPL) and Motorola Mobility (NASDAQ:GOOG) after determining the companies could not “establish a right of relief” for the alleged violations. Meanwhile, the judge in Apple’s fight with Samsung (SSNLF.PK) said she lacks the “bandwidth to handle the strain of the companies’ multiplying demands.”
On Thursday, Best Buy (NYSE:BBY) founder Richard Schulze said he would resign as chairman immediately “in order to explore all available options” for his 20.1 percent ownership share in the company. Earlier, he had planned to step down after the company’s June 21 annual meeting. As of April 11, Schulze was Best Buy’s largest shareholder with 69.78 million shares, according to Reuters, and for 36 years, until 2002, he was the company’s chief executive.
A Closer Look: Did Controversies CRUSH Best Buy’s Founder?
Olympus Corp. announced on Friday that it will cut around 2,700 jobs and restructure its global manufacturing operations. This comes in light of its recovery from a $1.5 billion accounting scandal that gave it a net loss in the last fiscal year. In plan through the fiscal year ending March 2017, the company plans to have it job cuts done by March 2014, consolidate its global manufacturing base by 40 percent and increase its capital adequacy ratio to 30 percent or higher in the next five years, according to MarketWatch.
Molina Healthcare’s (NYSE:MOH) shares are up 27 percent in premarket trading after the company said it had succeeded in Ohio when a state agency reversed itself and said it will allow the company to continue offering managed-care services for Medicaid beneficiaries beginning in 2013. This comes after Molina filed a protest in April after its request-for-applications process didn’t meet expectations. The news is good timing for after Molina withdrew its full-year profit forecast on Wednesday.
Walker & Dunlop Inc. (NYSE:WD) will purchase lender CWCapital LLC for $220 million to expand its servicing portfolio. The price includes $80 million in cash and about $140 million in Walker & Dunlop stock, according to a company statement. After the deal’s close, CW Financial will be Walker & Dunlop’s biggest shareholder and its CEO, Michael Berman, have a senior management role at Walker & Dunlop.
Early Buzzers: McDonald’s Malaise, iPhone’s China Sales Forecast, Facebook Fires Up
Shares of McDonald’s Corp. (NYSE:MCD) fell 1.71 percent in early morning trading. The company said its second-quarter earnings will be reduced 7 cents to 9 cents due to global economic weakness. Same-store sales increased 4.4 percent in the United States and 2.9 percent in Europe. However, sales fell 11 percent in Japan when compared to last year.
Apple Inc. (NASDAQ:AAPL) shares edged slightly higher this morning. Analysts at Bernstein said that the tech giant could sell as many as 31 million iPhones per year in China by 2015, and increase to 80 million by 2017. The figures could boost earnings per share by $8 in 2015 and $12.50 in 2017.
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Facebook (NASDAQ:FB) shares popped 3.5 percent in early trading. The company announced late Thursday it plans to launch an app center for its mobile platform that would allow users to get personalized app recommendations on their smartphones. The app store will let users download Facebook-integrated apps for both Apple’s iOS and Google’s (NASDAQ:GOOG) Android devices, including popular apps like Instagram, Pinterest, and Draw Something. When the app center launches, Facebook said it will have more than 600 different apps.
Shares of Chesapeake Energy Corp. (NYSE:CHK) edged slightly higher in morning trading. The company is looking to sell roughly 450,000 acres of its holdings in Northern Michigan to cover an expected $9 billion to $10 billion cash shortfall, according to a prospectus released by one of its advisors on the matter.
Investor Insight: Here’s Why Big Banks Feel HEAT from the Fed
4 Buzzing Stocks Driving Stock Market Chatter Friday
Bank of America (NYSE:BAC): The Washington Post cites sources in reporting that over the past two years, banks have significantly raised overdraft fees on checking accounts. In 2009, the Fed forced banks to inform customers about overdraft fees, but the statements were not clear and customers were unable to follow them. Shares of Bank of America are trading .02% lower today.
Apple Inc. (NASDAQ:AAPL): According to The Next Web, founder Andrea Gozzi is being shut down. The Italian music startup has either already been or is in the process of being acquired by Google. Beginning June 12, customers of the software will stop receiving support. Also, in Australia, the Wall Street Journal reports that Apple may be penalized $1.9M after the company agreed that it possibly mislead customers about the latest iPad’s ability to connect to 4G Australian cellular networks. Shares of Apple Inc. are trading 0.70% higher today.
Featured Reading: WWDC 2012: Your Cheat Sheet to Apple’s Main Event
Facebook, Inc. (NASDAQ:FB): According to a blog by comScore (NASDAQ:SCOR), comScore is “preparing to publish new findings about the effectiveness of paid and earned media exposure on Facebook next week at the ARF Audience Measurement 7.0 conference in New York, along with our release of a new white paper, The Power of Like 2: How Social Marketing Works. Through our research, which examines the impact on consumer behavior as a result of media exposure (i.e. seeing a brand message), we are gaining critical new insights that show Facebook earned media is having a statistically significant positive lift on people’s purchasing of a brand.” comScore continues by stating “Unfortunately much of the recent discussion on Facebook effectiveness has gotten the story wrong.” Track Data reports Facebook has an overall option implied of 58 and an average of 60, indicating non-directional price movement. Shares of Facebook, Inc. are trading 2.43% higher today.
Nokia Corporation (NYSE:NOK): Nokia’s stocks rise as a result of an unconfirmed rumor that it may be a target for takeover for Samsung. Shares of Nokia Corporation are trading 4.42% higher today.
5 Super Active Stocks on Trading Radars Today
Progress Software Corporation (NASDAQ:PRGS): The company is working to implement its strategic plan, which includes; Cost Reductions (a $55M cost reduction effort was initiated in Q2), Re-investment ($15M is being re-invested into sales, marketing, and product development for core business), Share Repurchase (Progress is committed to finishing $150M of all $350+M authorized repurchase program during this fiscal year), and Divest non-Core product lines (progress has been made toward the divestiture of ten non-Core product lines). Many third parties have shown interest in the product lines, and the company believes it will complete all divestitures by the end of FY13. Shares of Progress Software Corporation are trading 13.65% lower today.
Featured Reading: WWDC 2012: Your Cheat Sheet to Apple’s Main Event
Centene Corp (NYSE:CNC): The Ohio Department of Job and Family Services have chosen the Buckeye Community Health Plan, Centene’s Ohio subsidiary, as one of five plans that will be given a state contract, beginning January 2013. Under this contract, Buckeye should operated statewide via the state’s newly aligned regions, including; West, Central/Southeast, and Northeast. Both CFC and ABD coverage has been combined into one contract for each region. Shares of Centene Corp are trading 8.98% higher today.
KMG Chemicals, Inc. (NASDAQ:KMGB): The company reports a FQ3 EPS of $0.34 which beats by $0.01, and a revenue totaling $66.6M, up 7.6% year over year, which beats by $5M. Shares of KMG Chemicals, Inc. are trading 1.62% lower today.
Comtech Telecomm. Corp. (NASDAQ:CMTL): Comtech sees FY12 EPS at $1.40-$1.48, consensus $1.37, and it sees an FY12 revenue of $420.0M-$425.0M with a consensus of $421.34M. Shares of Comtech Telecomm. Corp. are trading 4.84% higher today.
Rentrak Corporation (NASDAQ:RENT): the company reports a Q4 EPS (17c) and consensus (3c). Rentrack’s revenue for Q4 totaled $24.6M, consensus $23.96M. Shares of Rentrak Corporation are trading 10.19% lower today.
Optical Cable Corporation SPIKES 45% with 4 Super Hot Stocks
Optical Cable Corporation (NASDAQ:OCC): According to ITG, May 2012’s US trading volume totaled 4.3B shares and an average daily volume, ADV, of 197M shares. This can be compared to April 2012’s trading volume of 3.5B shares and an ADV of 176M shares, as well as 4.3B shares and an ADV of 199M shares in May. There were 22 May trading days, 20 April trading days, and 21 May 2011 trading days. Shares of Optical Cable Corporation are trading 45.21% higher today.
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China TransInfo Technology Corp. (NASDAQ:CTFO): China TransInfo Technology, through affiliate China TransInfo Technology Group Co., has entered into a merger with TransCloud Co. Ltd in which Merger Sub will merge with the company, which will continue as the surviving corporation as well as fully owned subsidiary of Parent. All shares of the company’s common stock issued and outstanding just prior to the occurrence of the Merger will have the right to receive $5.80 in cash without interest. This excludes shares held by the company as treasury stock and stock either owned directly or indirectly by Parent, merger sub or of the company’s wholly owned subsidiaries.
Molina Healthcare, Inc.(NYSE:MOH): As a result of Ohio’s reversed decision, Medicaid contracts have been recommended, and Jefferies believes shars of Molina Healthcare and Centene (NYSE:CNC) will gap higher. After Ohio announced the original contract winners in April, both stocks traded down a significant amount. Jefferies labels Aetna’s (NYSE:AET) Ohio contract lost as surprising because it scored highest of all initial winners, but the firm believes that the state may have detected an issue with the submission. However, since the award only added approximately 1% to the company’s earnings, the stocks will be muted.
The Cooper Companies, Inc. (NYSE:COO): According to Baird, the headlines about Cooper’s earnings miss does not change that the outlook appears the same and fundamentals seem healthy. The firm says that the company’s only weakness would be a buying opportunity. The shares continue to have an Outperform rating with a $92 price target. Shares of The Cooper Companies, Inc. are trading 3.81% lower today.
Navistar International Corp (NYSE:NAV): An SEC filing shows that Car Icahn has raised his stake in Navistar International from 9.99% to 11.87%. The investor made purchases yesterday despite Navistar’s 28% loss on share price. Also, following lower than expected Q2 results, UBS lowered its price target also citing lowered guidance, weak seasonality, and demand issues due to truckers waiting for the company to gain EPA emission certification. Shares remain Buy rated. Shares of Navistar International Corp are trading 8.05% higher today.
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