Fusion-IO, Cytec, MBIA, Eldorado Gold Biggest Stock Price Percentage Winners April 12th
Fusion-IO, Inc. (NYSE:FIO): Fusion-io (NYSE:FIO), which provides software for data centers, is jumping after research firm Piper Jaffray reported this morning that the company may be working on a new deal with Cisco (NASDAQ:CSCO). Under the potential deal, Cisco would sell Fusion-io’s cards as part of Cisco’s UCS platform, said the firm in a note to investors. Piper estimated that Fusion-io would only have to embed its cards in 2.9% of all of Cisco server units expected to be sold this year in order to make Cisco a 10% customer. Piper also reiterated a $38 target and Overweight rating on Fusion-io shares. In early afternoon trading, Fusion-io jumped $2.95, or 11.96%, to $27.61. This note corrects Piper’s price target. The shares closed at $28.31, up $3.65, or 14.8%. They have traded in a 52-week range of $14.90 to $41.74.
Cytec Industries Inc (NYSE:CYT): Cytec Industries announced its firm intention to acquire all of the outstanding shares of Umeco plc, an international provider of advanced composite materials, in an all-cash transaction valued at approximately $439M, or GBP274.3M, based on a 1.60 exchange rate. The board of directors of Umeco intends to unanimously recommend the transaction to Umeco shareholders. The acquisition of Umeco will allow Cytec to further enhance and leverage its position as a technology leader in advanced composite materials. The transaction will expand Cytec’s presence in both aerospace and industrial applications, an area where Cytec sees excellent opportunities for growth and value creation. The transaction is expected to be immediately accretive to Cytec’s EPS. Year one targeted synergies are in raw material costs, administrative areas and increasing aerospace revenue from added capacity which are approximately $15M with additional synergies anticipated over time as we move through the integration process. The estimated EPS accretion for the remainder of 2012 is approximately $0.20 per share and full year 2013 is estimated at approximately $0.65 per share including synergies. The shares closed at $64.06, up $6.57, or 11.43%. They have traded in a 52-week range of $32.02 to $62.80.
MBIA Inc. (NYSE:MBI): A judge’s ruling to block an attempt to halt the deposition of Bank of America (NYSE:BAC) CEO Brian Moynihan in a legal fight with MBIA (NYSE:MBI) could speed settlement talks between the companies, according to a source speaking to The Wall Street Journal. Bank of America and MBIA have discussed a settlement but remain far apart, but the prospect of a deposition “creates enormous pressure for Bank of America to settle,” the report quoted the source as saying. The shares closed at $10.28, up $1.21, or 13.34%. They have traded in a 52-week range of $5.99 to $13.50.
Eldorado Gold Corporation (NYSE:EGO): Paul N. Wright, President and CEO of Eldorado Gold provided an update of guidance in respect to the company’s construction schedules, production levels, and capital and operating cost estimates for the period 2012-2016; with special emphasis on integration of the company`s newly acquired assets in Greece and Romania. “Eldorado plans on expanding gold production by roughly 160% over the next five years, making it one of the fastest growing emerging senior gold producers globally. With industry leading cash costs of approx. $350/oz expected over the same period, the company’s extensive mine development, construction and expansion programs can be funded largely by growing internal cash flows. Eldorado intends to invest over $1B in Greece over the next several years in new mine development and related infrastructure. This significant investment will result in material direct and indirect job creation,” said Paul Wright. The shares closed at $14.40, up $1.55, or 12.06%. They have traded in a 52-week range of $12.44 to $22.12.
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