Hot Stocks in Trading Action Friday: Schlumberger, Cogent, AsiaInfo-Linkage, Parker-Hannifin
Schlumberger Limited. (NYSE:SLB): Says “Uncertainty remains over the outlook for 2012 due to the continuing sovereign debt crisis in Europe which places downward pressure on GDP and oil demand forecasts. Natural gas markets are well supplied in North America with gas storage well above five-year highs. In this environment, the thin excess oil supply cushion is expected to support oil prices close to current levels, while global demand for LNG continues to increase. Recent E&P customer spending forecasts also point to higher E&P investment in 2012, particularly in international markets.” Shares of Schlumberger Limited. are trading 1.28% higher today.
Parker-Hannifin Corporation (NYSE:PH): Sees FY12 Industrial International sales up 1.9%-3.9% vs. FY11, Aerospace sales up 7.1%-9.9%, Climate & Industrial Controls sales down 2.7%-up .3%. Comments from slides that will be presented on the Q2 earnings conference call. Shares of Parker-Hannifin Corporation are trading 4.74% lower today.
AsiaInfo-Linkage, Inc. (NASDAQ:ASIA): AsiaInfo-Linkage announced that its Board of Directors has received a non-binding proposal letter from Power Joy Cayman Ltd, a wholly owned subsidiary of CITIC Capital China Partners II, L.P., pursuant to which Power Joy proposes to acquire all of the outstanding shares of common stock of AsiaInfo-Linkage in cash at a price which represents a premium over the current stock price. The Special Committee of the Board of Directors, which was formed to consider the Proposal and any potential alternative transactions involving the company, has retained Shearman & Sterling LLP as its legal counsel and is in the process of engaging a financial advisor to assist it in consideration of such matters. Shares of AsiaInfo-Linkage, Inc. are trading 20.87% higher today.
Cogent Communications Group, Inc. (NASDAQ:CCOI): Internet service provider Cogent Communications (NASDAQ:CCOI) is retreating, after the FBI raided and shut down one of Cogent’s customers, Megaupload.com, which provides online storage services and allows users to share files, according to The Wall Street Journal. The FBI also took information from Cogent’s computer systems, FBR Capital wrote in a note to investors, after conducting checks with Cogent. Meanwhile, the founders and several employees of Megaupload, some of whose sites are hosted by Cogent, were arrested, according to Wired.com. In an indictment, prosecutors charged Megaupload’s owners with criminal copyright infringement and money laundering, added Wired.com. The indictment also alleged that Megaupload had transferred $30M in proceeds from copyright infringement activities to a Cogent bank, according to FBR. Cogent received an average of $1M per month from Megaupload from February 2009 to July 2011, the indictment says according to the firm. Since Cogent’s revenue grew $1.8M sequentially in all of Q3, the company’s Q1 revenue could decline sequentially following Megaupload’s shutdown, FBR says. The firm, which maintains a Market Perform rating on Cogent, believes that the government may take action against other file sharing websites. In mid-morning trading, Cogent dropped $2.85, or 15.15%, to $15.97. Shares of Cogent Communications Group, Inc. are trading 16.85% lower today.
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