BofA’s CEO Moynihan Analyzes U.S. Housing Market and 2 Other Hot Stocks to Watch
Bank of America Corp. (NYSE:BAC): Current price $13.95
Speaking at a Wall Street Journal event in New York on Wednesday, Chief Executive Brian Moynihan deemed the United States housing market “fairly stable.” Refinancing activity has slumped lately as interest rates have moved up, dragging down income for the Big Banks, but Moynihan shrugged that off, saying that a decrease in refinancing activity does not necessarily imply the same for the strength of the overall domestic housing market. Rather, the CEO said that home purchases, which have grown somewhat since the beginning of 2013, comprise the engine of broader economic growth. Moynihan also remarked that consumer spending has been solid, even through a partial government shutdown.
Mindspeed Technologies Inc. (NASDAQ:MSPD): Current price $5.005
On Tuesday, M/A-Com Technology Solutions Holdings Inc. said that it will acquire the semiconductor maker Mindspeed Technologies in a roughly $272 million transaction that will position it in optical networking. The buyer said it will pay $5.05 per share for Mindspeed in a cash tender offer, and also will assume certain equity awards held by Mindspeed employees. Beyond that, M/A-Com reported that the acquisition will add between 15 and 20 cents per share to its 2014 adjusted earnings and 25 to 30 cents to its 2015 adjusted earnings. The transaction and the deal should close by the end of 2013.
Alcatel-Lucent SA (NYSE: ALU): Current price $4.17
Alcatel has deployed a 4G LTE network for Setar, the top telecommunications service supplier on the island of Aruba. The deployment represents the launch of 4G services on the island, and employs 20 megahertz of spectrum in the 1800-megahertz frequency band to deliver one of the world’s quickest 4G LTE networks, with a high quality of experience for users of smart phones, tablets, and other mobile devices. For its part, Setar has also deployed small cells in strategic locations around the island so as to increase indoor access to Setar’s 3G network.