A.M. Radar: BlackRock Ups CHK Stake, VeriFone’s Stock a Victim
After closing 3.25 percent higher during regular trading yesterday, Chesapeake Energy Corp. (NYSE:CHK) gained another 2.37 percent in pre-market activity today. CNBC reported that BlackRock Inc. (NYSE:BLK) has been aggressively buying shares in the troubled natural gas giant and now holds around 4 million to 5 million shares.
Facebook (NASDAQ:FB) has now logged a two-day winning streak. Shares also continued to climb higher in late trading. On a conference call with brokers, lead underwriter Morgan Stanley (NYSE:MS) explained that customers caught up in the initial public offering debacle will not have to pay more than $43 per share. Shares traded as high as $45 per share, thus the bank will be responsible for filling in the $2 gap. Shares are down 1.67% in pre-market activity Friday.
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VeriFone Systems Inc. (NYSE:PAY) shares are crashing over 10 percent in pre-market trading hours. The company reported that net income in the second-quarter fell 42.5 percent to $14.5 million (13 cents per share), compared to $25.2 million (27 cents per share) a year earlier. On the positive, revenue increased 61.4 percent to $472 million. “We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales,” said Douglas G. Bergeron, Chief Executive Officer. “We remain confident in our outlook for the year. VeriFone is continuing to prove that widespread incumbency combined with market-leading innovation is a winning formula for the payments marketplace.” Verifone and eBay Inc. (NASDAQ:EBAY) are currently planning on bringing PayPal accounts to cash registers at brick-and-mortar stores.
Despite falling almost 7 percent on Thursday, shares of Tiffany & Co. (NYSE:TIF) are still lower in premarket trading. The luxury jeweler recently reported flat net income of $81.5 million (64 cents per share) for the first-quarter, compared to $81.1 million (63 cents per share) a year earlier. Michael J. Kowalski, chairman and chief executive officer, said, “In terms of our sales for the first quarter, regions outside the Americas performed generally as expected. However, the Americas region underperformed, continuing a soft trend that began in the last quarter of 2011 and compounded by the difficult comparison to substantial sales growth in last year’s first quarter. These sales results led to net earnings modestly trailing our expectations.”
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4 Stocks Attracting Heavy Trading Interest
Delcath Systems, Inc. (NASDAQ:DCTH): Delcath Systems is at 13.333M shares, and Spot Secondary is $1.50. For the offering, Cowen and Wedbush behaved as joint book running managers. Today, shares of Delcath Systems, Inc. trade 36.97% lower.
Mentor Graphics Corp (NASDAQ:MENT): According to Mentor Graphics Corp, $110M remains for share repurchases, and the company expects purchases during the year to counter the share issuances from programs compensated by equity. The company also states that Q1 headcount dropped by 10, and because production capacity is increasing, an increase of shipments of Veloce2 emulation should begin in Q2. The EPS during Q1 is $0.30 and beats by $0.06. Revenue is +7% year-over-year at $247.9M and misses by $5M.
A Closer Look: Mentor Graphics Earnings Cheat Sheet>>
rue21, inc. (NASDAQ:RUE): The board for rue21 has agreed upon a $50M share repurchase program in order to repurchase the company’s common stock.
America’s Car-Mart, Inc. (NASDAQ:CRMT): America’s Car-Mart reports a EPS of 97c during Q4, consensus 91c. The company also reported a revenue of $113.5M and consensus of $120.74M.
2 Torched Stocks and 2 Stocks on Fire Friday
In the Red:
VeriFone Systems Inc (NYSE:PAY): Yesterday, VeriFone reported Q2 results that were stronger than expected, but the company struggles after providing weaker than expected guidance for Q3 and reestablishing the outlook for FY12. Although the company expects a strong demand for products, it may be hurt by the strength of the American dollar versus the euro. Following results, Deutsche Bank maintained its Sell rating on the stock and seemed skeptical about the company’s statements.
A Closer LOOK: VeriFone Earnings Cheat Sheet>>
Tiffany & Co. (NYSE:TIF): Friday’s sell-off is a sign that Tiffany (NYSE:TIF) investors worry it’s Q4 estimates are too optimistic. The headwinds hurting the jeweler are macroeconomic, Barron’s says, and not due to missteps by the company. The stock looks cheap. At 13.9x forward earnings, its price-to-earnings ratio is the lowest since 2009 — offering an opportunity for patient investors willing to wait for the economic headwinds hurting Tiffany to subside.
In the Green:
Uroplasty, Inc. (NASDAQ:UPI): Uroplasty shows good performance since its FQ4 results beat estimates. Global sales rose to 39% year-over-year, and U.S. sales increased by 63%. U.S. numbers rose because of increased Urgent PC Neuromodulation System sales accompanied with a 53% Macroplastique sales increase. JPM securities have upgraded Uroplasty shares to Outperform.
Post Holdings Inc (NYSE:POST): Post Holdings have reported an EPS of 39c for Q2 and a consensus of 48c. Revenue for Q2 totalled $250.5M and a consensus of $253.80M. Because of the recent separation from Ralcorp, post management expects an adjusted EBITDA in the range of $210M-$220M for twelve months. The Company’s guidance will be affected by management’s wish to stabilize market share via trade and pricing strategies as well as adequate investment in advertising and promotion, in order to support its many brands.
Apple & Facebook Head This Way, AT&T & Nokia Head That Way
In the Red:
Apple Inc. (NASDAQ:AAPL): According to Piper’s Gene Munster, Apple may reach $1,000 over the next few years because the company will release a totally redesigned iPhone, the Apple TV set (price at $1,500-$2,000), limited iPhone subsidy cuts, constant margin strength, demand in China, rising tablet sales, and the adoption of enterprise Mac/iOS.
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Facebook, Inc. (NASDAQ:FB): According to PocketLint.com, Facebook may purchase Opera Software, owner of the Opera web browser. Facebook is considering an expansion into the browser space making them a competitor of Google Chrome, Microsoft’s Internet Explorer (NASDAQ:MSFT), and Mozilla Firefox.
In the Green:
AT&T, Inc. (NYSE:T): Yesterday, AT&T revealed its first prepaid side slider smartphone, the Galaxy Appeal. The Samsung product will cost $149.99 and will be sold at Walmart beginning June % and at AT&T stores beginning July 15. The phone possesses a 3.2 inch touch screen, a 3-megapixel rear-facing camera with video and 3x zoom. Shares are in the green today.
Nokia Corporation (NYSE:NOK): Nokia announced that the Lumia 610 will be the most inexpensive Windows Phone mobile and will be released in June. Though Microsoft (NASDAQ:MSFT) used billions of dollars last year to acquire Skype, the phone does not run Skype because the program requires 512mb of memory, and the new device offers only 256mb. Shares are bouncing higher nicely Friday.
Market Recap: Markets SLIDE into Holiday, Facebook Fiasco Update
Markets closed down on Wall Street today: Dow -0.62%, S&P -0.24%, Nasdaq -0.10%, Oil +021.%, Gold +0.97 %.
On the commodities front, Oil (NYSE:USO) declined to $90.85 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1575 an ounce while Silver (NYSE:SLV) rose 0.29% to settle at $28.43.
Here’s your Cheat Sheet to today’s top stock stories:
The fiasco of Facebook’s (NASDAQ:FB) IPO listing has left exchange operator Nasdaq OMX Group (NASDAQ:NDAQ) open to claims from market participants who lost money on failed or delayed trade executions, and these claims could well exceed $100 million. A system glitch delayed the execution of many clients’ trades, and the brunt of the losses were borne by four of the top market makers in the Facebook IPO – Citadel Securities, UBS AG(NYSE:UBS), Knight Capital (NYSE:KCG), and Citi (NYSE:C). These market makers could end up claiming over $100 million from Nasdaq.
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Meanwhile, Morgan Stanley (NYSE:MS), the lead underwriter of Facebook’s (NASDAQ:FB) IPO, will compensate retail investors for their losses from having overpaid for the stock in Friday’s IPO, according to an Associated Press report. The firm is reportedly reviewing orders its retail clients placed for Facebook stock, and will make price adjustments for clients determined to have paid too much, according to a source familiar with the matter.The person didn’t give details on what would constitute overpaying.
Talbots Inc. (NYSE:TLB) shares tanked to $1.55 after it announced Sycamore Partners is not pursuing a takeover anymore. The company is still open to a deal with them at $3.05 a share but it also will pursue other options. Without the deal, stakes are higher for Talbots which has seen losses from sales declines. Its debt has also more than doubled, according to MarketWatch.
Big Lots Inc. (NYSE:BIG) shares jumped 4.5% in Friday afternoon trading. Earlier in the week, the company announced its intention to buy back $200 million additional stock. It also announced that its quarterly profit dropped 22% from slow sales.