5 Stocks Blazing Hot in Thursday Trading Action
Nokia (NYSE:NOK) is having a hard time catching up in the smartphone race, as sales of its older Symbian smartphone OS collapse and sales of newer devices running Microsoft’s (NASDAQ:MSFT) Windows Phone fail to replace its floundering predecessor. The Finnish company that once dominated the the mobile market is now struggling with its comparatively small smartphone share. Currently, Samsung makes up 44 percent of total shipments, Apple (NASDAQ:AAPL) makes up 22.9 percent, but Nokia only makes 16 percent of total shipments in the industry.
Microsoft (NASDAQ:MSFT) is expected to profit when Facebook (NASDAQ:FB) completes its initial public offering this week. Back in 2007, Microsoft made a relatively small investment in the social media company. Facebook could be valued at up to $104 billion, meaning Microsoft could see its original investment in Facebook grow in value from $240 million to up to $1.6 billion. Currently, the computer giant has a 1.8 percent stake in Facebook, and Microsoft is planning to offer 6.6 million of its 33 million shares in the IPO. If valued at the high-end estimate of $38 per share, Microsoft could make approximately $250 million. Even more significantly, Facebook and Microsoft have stricken a partnership and are making mutually beneficial moves in a fight against their shared rival — Google (NASDAQ:GOOG).
Dendreon Corp. (NASDAQ:DNDN) announced today that the U.S. Securities and Exchange Commission has begun a formal investigation into the company’s prostate-cancer drug Provenge. The investigation may be related to shareholder lawsuits alleging the company misled investors about the drug. According to SEC-filed quarterly reports, the lawsuits have been consolidated in federal court in Washington state, alleging that Demdreon and certain current and former officers made materially false or misleading statements about the market launch of Provenge. Dendreon intends to defend itself against these allegations and said that it believes the claims in the lawsuits lack merit.
Chesapeake Energy (NYSE:CHK) said on Tuesday that it had increased the size of a term loan to $4 billion after the company’s announcement that the loan from Goldman Sachs (NYSE:GS) and Jefferies (NYSE:JEF) would be for $3 billion only four days earlier. The loan carries a 8.5 percent interest rate, which will add to the $195 million in interest payments the company made during the first quarter. In February, Chesapeake raised $1.3 billion in a high-yield bond offering that paid 6.777 percent on the debt. Analysts assert that the move underscores Chesapeake’s troubles.
Intel (NASDAQ:INTC) is likely to continue its tradition of filling its top positions from within its own ranks, as the company looks to hire a new chief executive officer. Current CEO Paul Otellini said Chief Operating Officer Brian Krzanich is a strong candidate to eventually replace him. Under Otellini’s leadership this year, Intel has announced five new customer relationships and launched the first phone with an Intel processor last month.
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