Paul Kangas' Stocks in the News
Friday, May 18, 2007
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JEFF YASTINE: The blue chip took the lead on Wall Street today sending the Dow to new highs. The index jumping almost 70 points at the open led by a 2 percent gain in IBM shares following bullish company comments on its long-term outlook. The NASDAQ joined the rally rising 20 points by mid- afternoon as Microsoft's purchase of Aquantive fueled speculation about other tech and Internet takeover targets as Scott mentioned a moment ago, but profit-takers moving in during the afternoon whittling down some of the gains. So the Dow though finishing up 79.81 to 13,556.53, yet another new high.
The index rising in four out of five sessions for an overall gain of 230.31 points. The NASDAQ tacking on 19 points to 2558.45 this week. It rose twice and fell three times for a net overall loss of 3 3/4 points. The S&P 500 finishing up 10 points even and just five points from its all-time high set back in 2000. And then over on the bond market the 10-year note falling 11/32 and 97 19/32, bumping the yield up to 4.81 percent.
Here's one we don't normally see topping our most actives on the big board, Taiwan Semiconductor (TSM) falling $0.15. This is due to Phillips Electronics, which as begun to sell of about a third of its remaining holdings in this chip maker at a price of $10.68 a share. Phillips outlined plans to liquidate its entire 16 percent stake in Taiwan Semiconductor by 2010 and they detailed those plans back in March.
And then we have General Electric (GE) which advanced $0.43. The Dow component not commenting on the bidding for its plastics division which has been put for sale. The "Wall Street Journal" says (INAUDIBLE) basic industries and a Dutch petrochemical firm are among the leading bidders. The sale price could nab as much as $11 billion to GE.
Pfizer (PFE) advancing $0.08.
And then Micron Tech (MU) is down $0.03.
AT&T (T) losing $0.16 after having some bigger gains earlier in the week.
ExxonMobil (XOM) gaining $1.46 as oil prices closed out the week on a positive note. The June contract for light sweet crude has risen over 4 percent just in the past week.
Motorola (MOT) rising $0.19 and they have the Razr II cell phone model coming out soon and again, some anticipation regarding that.
Time Warner (TWX) gaining a fraction.
Verizon Comm (VZ) up $0.45. Citigroup upgrading that stock from "sell" to "buy" with a $48 a share price target.
And then there's Citigroup (C) itself gaining $0.22.
Then onto the Dow gainer of the day, IBM (IBM) gaining $2.68. Last night we told you big blue, through its chief financial officer, setting a 2010 earnings target of $11 a share through acquisitions and stock buybacks and the like.
Then Lowe's Companies (LOW) climbing $1.34. That's ahead of first quarter results which are due out on Monday. Analysts at Credit Suisse begging or excuse me pegging earnings at $1.90. They do not expect same store sales to be nearly as bad as rival Home Depot is worth.
Intl Game Technology (IGT) jumping $2.74. The Wall Street rumor mill says the slots machine maker and gaming technology firm could be the next target of a private equity buyout. The company refusing to comment on that.
And then Lin TV Corp (TVL) jumping over 2. The broadcaster hired JPMorgan securities to explore the sales of its 29 television stations. The stock nearly doubling since the beginning of the year, a nice run there.
99 Cents Only Stores (NDN) gaining $1.39. The discount retailer finally unveiling its third quarter financials last night for 2006. The results showed a decent 31 percent jump in profits.
Now on to the NASDAQ where there's the reaction in Aquantive (AQNT) soaring nearly $28. As Scott Gurvey mentioned, the online ad agency being bought out by Microsoft for $6 billion. That's an 85 percent premium to Aquantive's closing price yesterday.
Apple (AAPL) picking up $0.58.
Microsoft (MSFT) not much reaction there, lost $0.15 on the day.
Google (GOOG) losing $0.64.
And then Intel (INTC) up $0.47.
Seprecor (SEPR) tumbling over $5.50. Medicare is cutting back on reimbursement for the use of Seprecor's asthma drug Zilpinex (ph). Analysts saying the Medicare changes affecting perhaps 15 percent of Zilpinex sales and really taking analysts by surprise, the extent of those Medicare reimbursement changes.
Cisco Systems (CSCO) losing $0.07.
Yahoo! (YHOO) gaining $1.18. Now with Microsoft on the buyout path, some think Yahoo! might be a potential buyout candidate.
Qualcomm (QCOM) gaining $0.39. And then ValueClick (VCLK) gaining $2.12. As Scott mentioned, if Aquantive's buyout from Microsoft makes sense, some think that ValueClick, another web advertising rival, would make a nice buyout snack for a deep pocketed technology firm.
Enernoc (ENOC) surging over $5. This is an IPO. The company offering nearly four million shares at $26 a share. The firm operates a network that helps customers manage and reduce their electric consumption. Then TierOne (TONE) surging over 6. The bank has nearly 70 branches in the Midwest, lending operations in six other states. It's been bought out by CapitalSource for $652 million. That price 38 percent above the previous day's closing price.
Then finally CalAmp (CAMP) sliding nearly $3. The wireless products maker issuing a profit warning, citing what it said were quality issues with its largest customer, EchoStar Communications. CalAmp filed suit earlier this week against one supplier it considers to blame for those quality issues and CalAmp Susie used to be the old California Amplifier.
Those are our stocks in the news tonight.
