Friday December 23rd, 2011
8:30am Durable Goods Orders est. 2.2% range -2.0% to 7.0% prior -0.7%
Durables Ex Transportation est. 0.4% range -0.5% to 1.5% prior 0.7%
Personal Income est. 0.2% range 0.0% to 0.4% prior 0.4%
Personal Spending est. 0.3% range 0.2% to 0.6% prior 0.1%
PCE Deflator YoY est. 2.7% range 2.6% to 3.0% prior 2.7%
PCE Core MoM est. 0.1% range 0.0% to 0.2% prior 0.1%
PCE Core YoY est. 1.7% range 1.6% to 1.8% prior 1.7%
10:00am New Home Sales est. 315K range 298K to 350K prior 307K
New Home Sales MoM est. 2.6% range -2.9% to 14.0% prior 1.3%
Technical Moving Averages
S&P 1231 1259
Dow 11848 11935
NASDAQ 2617 2662
S&P futures vs fair value: +5.90. NASDAQ futures vs fair value: +5.20.
Gapping up: EK +20.6% (Eastman Kodak announces sale of its Eastman Gelatine Corporation business to Rousselot), RMBS +12.6% (Rambus and Broadcom sign patent license agreement), AEA +5.7%, TOT +2.2%, C +2%, ING +1.9%, MS +1.7%, BAC +1.1%, GS +1.1%,
Gapping down: CBK -2.6% (earnings).
Friday December 23rd, 2011 Top News Stories
MRCY Co announced that it has signed a definitive agreement to acquire KOR Electronics and its wholly owned subsidiary, Paragon Dynamics. Under the terms of a merger agreement, KOR will become a wholly-owned subsidiary of Mercury for an all-cash purchase price of $70 mln. The acquisition will be funded with cash on hand, and is expected to be immediately accretive to earnings after excluding the effects of non-cash amortization of intangible assets related to the acquisition.
BLD Co announced that it has entered into a definitive agreement to be acquired by Forsyth Baldwin, a company controlled by Forsyth Capital Investors. The agreement was unanimously approved by Baldwin's Board of Directors. Under the agreement, Baldwin's stockholders will receive $0.96 in cash for each share of Baldwin Class A or Class B Common Stock. This represents a premium of ~104% over the closing share price on Thursday, December 22, 2011. The transaction is expected to close in the second quarter of 2012.
EK Co announced today that, consistent with its previously announced intention to sell non-core assets to sharpen the Company's focus on its digital growth initiatives and accelerate Kodak's transformation to a digital company, it has agreed to sell its Eastman Gelatine Corporation business to Rousselot, part of the Vion Food Group. Financial details were not disclosed.
SPWR Co announced that it has signed a definitive agreement to acquire Tenesol SA, a global solar provider headquartered in La Tour de Salvagny, France. Tenesol, a wholly-owned subsidiary of TOT, has operations in 18 countries and solar panel manufacturing facilities in France and South Africa. Under the terms of the agreement, SPWR will acquire Tenesol from TOT for $165.4 mln in cash. Concurrently with the closing of the acquisition, TOT has agreed to purchase 18.6 mln shares of SunPower common stock in a private placement at $8.80 per share, a 50 percent premium to SunPower's December 22, 2011 closing price. SPWR expects the acquisition will positively affect its financial position in 2012. After the sale of Tenesol, Total will own ~66% of SunPower's common share.
AMR AMR Corp, the parent of American Airlines, was cleared by a U.S. bankruptcy judge on Thursday to buy 32 Boeing Co (BA.N) planes that it had been scheduled to receive through the end of next year. At a hearing in New York, U.S. Bankruptcy Judge Sean Lane confirmed the carrier's continued ability to purchase and finance the planes, a company spokesman said.
Friday December 23rd, 2011
Other Stock News
SFLY WPX Energy (WPXwi) will replace Compuware (CPWR) in the S&P 500 index, Compuware will replace Exterran Holdings (EXH) in the S&P MidCap 400 index, and Exterran Holdings will replace Skyline Corp. (SKY) in the S&P SmallCap 600 index after the close of trading on Friday, December 30. S&P 100 & 500 constituent The Williams Companies (WMB) is spinning off WPX Energy in a transaction expected to be completed on December 31 pending final approvals. The Williams Companies stub will remain in the S&P 500 index.
QCOM Co announced that the FCC has approved the sale of its Lower 700 MHz D and E Block unpaired U.S. spectrum licenses to AT&T (T). The sale by Qualcomm to AT&T of the licenses for $1.925 bln was originally announced in December, 2010. The proposed transaction has been pending subject to the satisfaction of the conditions of closing.
Thursday December 22nd, 2011
CBK Reports Q3 (Nov) loss of $0.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of ($0.50); revenues rose 2.5% year/year to $123.9 mln vs the $124 mln consensus.
Other Stock News
RGLD Co announced it has agreed to acquire, through a wholly-owned subsidiary, 12.5% of the payable gold and 22.5% of the payable silver on the Tulsequah Chief project, located in British Columbia, from Chieftain Metals Inc. ("Chieftain") (TSX: CFB). Consideration for the transaction is $60 mln and, when production is reached, Royal Gold will make cash payments equal to (i) $450 per payable ounce of gold until 48,000 ounces have been delivered, and $500 per ounce thereafter; and (ii) $5.00 per payable ounce of silver until 2.78 mln ounces have been delivered, and $7.50 per ounce thereafter, or the prevailing market price of the metals. Once 48,000 ounces of payable gold and 2.78 mln ounces of payable silver have been delivered, the interests will convert to 7.5% and 9.75% of the payable gold and silver, respectively, for the remainder of the mine life.
Cameron (CAM) filed a mixed shelf for an undisclosed amount
Phazar (ANTP) filed for a 47K share common stock offering by selling shareholders
GeoResources (GEOI) filed a $500 mln mixed shelf
Albany Molecular (AMRI) filed a $50 mln mixed shelf
InnerWorkings (INWK) filed for a ~2.83 mln share common stock offering by selling shareholders
Fabrinet (FN) filed for a ~11.71 mln share common stock offering by selling shareholders
Oncothyreon (ONTY) filed a $150 mln mixed shelf
Complete Genomics (GNOM) filed a $100 mln
Nikkei...Holiday......... Hang Seng...18629.17...+250.90...+0.90%.
WPX Energy (WPXwi) will replace Compuware (CPWR) in the S&P 500 index, Compuware will replace Exterran Holdings (EXH) in the S&P MidCap 400 index, and Exterran Holdings will replace Skyline Corp. (SKY) in the S&P SmallCap 600 index after the close of trading on Friday, December 30. S&P 100 & 500 constituent The Williams Companies (WMB) is spinning off WPX Energy in a transaction expected to be completed on December 31 pending final approvals. The Williams Companies stub will remain in the S&P 500 index.
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