BlackBerry Finds a Life Jacket, Deutsche Bank’s Japan Party Problem, and 3 More Hot Stocks
BlackBerry (NASDAQ:BBRY): Former director Prem Watsa has reportedly lined up billions of dollars in backing from the Canada Pension Plan Investment Board to take the company private, causing BlackBerry shares to jump more than 5 percent. Watsa, whose Fairfax Financial holds a 10 percent stake in BlackBerry, is the largest investor in the beleaguered company.
Deutsche Bank AG (NYSE:DB): Japan’s securities regulator is apparently investigating the regional arm of Deutsche Bank for providing excessive entertainment to the country’s pension fund executives, Reuters says. “[Deutsche] employees had booked large expenses for entertainment involving pension fund executives,” according to Reuters sources, adding that “this raised red flags for the regulators because the pension fund executives involved are legally considered public employees, subject to anti-bribery statutes, since they handle part of the national pension scheme.”
Lululemon Athletica (NASDAQ:LULU): An initiation of coverage at Buy from Citigroup has helped Lululemon shares trade higher, as the bank reports that it expects “industry-leading” earnings per share growth of greater than 25 percent. Citigroup is one of the few firms with a definitive stance on the company — many are waiting to see what becomes of the CEO transition before putting money down.
Western Digital Corp. (NYSE:WDC): Western Digital has agreed to acquire Virident Systems, a provider of server-side flash storage products, in a deal worth $685 million. The buy will help extend Western Digital’s HGST unit’s presence in the market for corporate solid-state drives, which IDC believes will grow to $7 billion by 2017 from $2.5 billion last year.
Smithfield Foods Inc. (NYSE:SFD): Shuanghui International’s $4.7 billion purchase of Smithfield Foods has gotten the nod of approval from the U.S. Committee on Foreign Investment, though activist investor Starboard Value said it will vote against the transaction and is looking for other buyers, as it believes that the asking price for the pork producer is too low.