Weekly Market Recap: Best Buy Shakes Up, Nokia Lumia in the Spotlight

Tuesday

SUPERVALU Inc. (NYSE:SVU) announces that completion of around 100 store remodels and the addition of about 50 new stores, including licensed locations, are in its near plans. Fiscal year 2013 financial projections include revenue from $35 billion to $35.5 billion, with a consensus of $35.28 billion; capital expenditures of $675 million; identical store sales growth excluding fuel, at a negative 1 percent to negative 2 percent; and sales from its independent business segment rising modestly.

Best Buy Co. Inc. (NYSE:BBY) reports a management shakeup, as Brian Dunn resigns from the post of CEO and director. “There were no disagreements between Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company.”, said a company spokesperson. Interim CEO will be Director Mike Mikan, who will preside during the search for a new CEO, while Best Buy founder Richard Schultze will remain as chairman.

X-Rite, Incorporated (NASDAQ:XRIT) signs a definitive merger agreement with Danaher (NYSE:DHR), in a deal that was unanimously approved by the X-Rite Board of Directors. Danaher will purchase X-Rite at $5.55 per share in cash, or a total of approximately $625 million including the assumption of debt, net of cash, and the offer should begin within 5 business days.

Penn Virginia Resource Partners LP’s (NYSE:PVR) management expects to recognize an impairment charge of around $115 million to $130 million for the three months which ended March 31. The charge arises from a determination that Penn Virginia Resources GP, the general partner of Penn Virginia Resource Partners LP, concluded on April 5th that it will recognize an impairment of its natural gas gathering assets which are located in the southern portion of the Fort Worth Basin of North Texas. The ongoing market declines of natural gas prices and the absence of drilling in that area are said to have been the causes of the impairment.

Thursday

Fusion-IO, Inc. (NYSE:FIO) might be partnering with Cisco (NASDAQ:CSCO), in which the latter would sell Fusion-io’s cards as part of its UCS platform. A Thursday morning note by research firm Piper Jaffray ignited the story, and FIO’s shares pop as the chatter accelerates.

Nokia Corporation’s (NYSE:NOK) costs to produce its new Lumia 900 smartphone include a bill of materials of $209, plus a manufacturing cost of $8, according to a preliminary estimate reported by iSuppli. The phone sports a cost-reduced design that implies close cooperation between the handset brand, Microsoft Corp. (NASDAQ:MSFT), and semiconductor supplier Qualcomm (NASDAQ:QCOM).

Ford Motor Co. (NYSE:F) and Dow Chemical (NYSE:DOW) are seeking ways to lighten the weights of car and trucks made by ford, using innovations in carbon fiber. To this aim, the companies have formed a joint venture, through which they hope to discover ways to improve fuel efficiency by the above efforts.

Rite Aid Corp. (NYSE:RAD) releases its fiscal year 2013 projections, in which it sees its adjusted earnings before taxes, interest, depreciations and amortization as between $925 million and $1.025 billion, and capital expenditures as around $300 million. The drugstore chain’s outlook for the year is based upon current same store front end sales and prescription count trends, which are adjusted for an expected decrease in pharmacy sales, as new, lower-cost generics are introduced. Also weighing in, is the lower number of pharmacies in the Express Scripts (NASDAQ:ESRX) pharmacy benefit management network, which will provide a benefit to Rite Aid. In addition, the estimates are influenced by a challenging reimbursement rate environment, and the impact of continued investments the company expects to make in its wellness remodels, customer loyalty program and other initiatives that target sales growth.

Friday

Safeway Inc. (NYSE:SWY) shares react to advice to clients by JPMorgan analyst Ken Goldman, in which he speculates that the grocer might well be a takeover candidate. Rumors to the same have sent shares up by 8 percent this week, and Goldman’s analysis only reinforces the chatter.

Alpha Natural Resources, Inc. (NYSE:ANR) shares were boosted to Top Pick in the coal industry by Nomura early Friday and upgraded to Buy, but slumped later. Alpha explained that worries regarding CAPP thermal concerns are less than had been feared, coal exports are impressive and that met coal prices have bottomed.

JPMorgan Chase & Co. (NYSE:JPM) first quarter figures were released Friday, and included a $172 million (3 percent) year-to-year drop in net income to 5.4 billion. The deficit was said to be due to higher noninterest expense, which was largely offset by higher net revenue. On the other hand, new revenue rose $27.4 billion, up by $1.6 billion, or 6 percent for the same period. Also up year-to-year was noninterest revenue at $15.6 billion, up by $1.8 billion, or 13 percent. This item was derived from by higher mortgage fees, and a $1.1 billion benefit from the Washington Mutual bankruptcy settlement, which was itself partially offset by lower principal transaction revenue, driven by a $907 million loss from DVA.

Wells Fargo & Company (NYSE:WFC) reported that its loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $1.6 billion at the end of its first quarter, down from $2.0 billion at December 31, 2011. Further, loans 90 days or more past due and still accruing with repayments insured by the FHA or predominantly guaranteed by the Department of Veterans Affairs for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program amounted to $20.9 billion for the same 2012 quarter, up from $20.5 billion at the end of the fourth quarter 2011, which obtained from growth in the FHA/VA portfolio over the past two years and the subsequent seasoning of those loans.

Joe’s Jeans Inc. (NASDAQ:JOEZ) shares jump 21.1 percent, following a fiscal first quarter statement that exceeded consensus for top-line result and for gross margin.

Primo Water Corporation (NASDAQ:PRMW) gets reassurance and a commitment from lenders, including a new long-term $20 million senior revolving credit facility. In addition, Primo should get as much as $15 million from a different lender, with certain of its fixed assets as collateral. The facilities are likely to have four year terms, and should close within 30 days; proceeds will go towards repaying its existing senior credit facility and for general working capital purposes.

Cheniere Energy, Inc. (AMEX:LNG): President Obama has signed an executive order that establishes a high-level, interagency working group that will facilitate coordinated Administration policy efforts to support safe and responsible unconventional domestic natural gas development. According to the order, the Working Group will accomplish the above by coordinating agency policy activities, ensuring their efficient and effective operation and facilitating cooperation among agencies, as appropriate; coordinating among agencies the sharing of scientific, environmental, and related technical and economic information.

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