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Global Industries M&A, Some Will Want More (GLBL)

Administrator — Mon, 12 Sep 2011 15:21:26 +0000

Global Industries Ltd. (NASDAQ: GLBL) is surging on news of a more than 50% buyout premium this morning. The offshore construction, engineering, project management and support services outfit has entered into a definitive merger agreement with Technip in a cash merger valued at $8.00 per share, or about $1.07 billion in enterprise value between stock and net debt after cash. It is actually a 55% premium to Friday’s close and represents a 92% premium to the average closing share price for the 30 trading days ending on September 9, 2011.

The high-premium deal sounds great on the surface, particularly considering that Global Industries has seen its shares slide so much from the energy peak of recent years. The problem is that this is going to leave many longer-term shareholders facing forced losses. Some holders are likely to demand a higher price.

The deal is expected to close in early 2012 if shareholder approval comes. The deal brings Global’s 14 vessels and important geographic positions in the Gulf of Mexico, AsiaPacific, and in the Middle East.

Where trouble is going to arise is that the 52-week trading range is $3.09 to $10.23. Even the 55% premium at $8.00 is going to leave at least some shareholders in the lurch. If you go back to the energy cycle peak of 2007 into 2008, the price was much higher above $15, then above $20, and then above $25 at the true peak. Global was also a $15 and $20 stock in the early part of last decade and even in the 1990s. No dividend has been paid to holders in that entire time either.

Realistically, there may not be one-penny more to pay above $8.00. It may be an incredibly fair and generous offer. Still, some shareholders get caught as being “long and wrong” and that will almost certainly have been the case for some investors.

This is an obvious case where some are going to want more. Whether or not they can get it is another issue. Global shares are currently up 51% at $7.78 and there has been a whopping 36 million shares in less than two hours of trading.

JON C. OGG

Filed under: Mergers and Buy Outs, Most Actives, Oil & Gas Tagged: GLBL

The 52-Week Low Club (HIG)(CI)(AVP)(GLBL)(SYMC)(EXPE)

247wallst — Thu, 30 Oct 2008 14:59:12 +0000

Hartford Financial (HIG) Big analyst downgrade. Plunges to $8.23 from 52-week high of $98.70.

CIGNA (CI) Profit drops 53%. Stock off to $15.08 from 52-week high of $56.98.

Avon (AVP) Weak guidance. Falls to $19.85 from 52-week high of $45.34.

Global Industries (GLB) Bad earnings. Analyst downgrade. Daily double. Off to $2.27 from 52-week high of $27.06.

Symantec (SYMC) Misses on earnings and give poor outlook. Moves down to $11.85 from 52-week high of $22.80.

Expedia (EXPE) Big drop-off in its core market–travel.. Sells down to $9.66 from 52-week high of $34.66.

Douglas A. McIntyre

Posted in HI/LOW Tagged: AVP, CI, EXPE, GLBL, HIG, SYMC

The 52-Week Low Club 5/8/2008 (GLBL)(HIMX)(RRI)(ADM)

247wallst — Tue, 05 Aug 2008 15:00:00 +0000

Global Industries (GLBL) Bad second quarter. Falls to $7.81 from $28.

Himax Technologies (HIMX) Still dropping a day after rough results. Down to $2.79 from 52-week high of$6.29.

Reliant Energy (RRI) Q2 results hurt by weather. Seels down to $14.32. from $28.77.

Archer Daniels Midland (ADM) Number are bad, pressure from high commodities prices.Sells off to $25.40 from 52-week high of $48.95.

Douglas A. McIntyre

52-Week Low Club (AUO, CVI, DIET, ENTR, FDP, GLBL, OIIM, PCCC, SNE, TNC, TRID, ZRAN)

247wallst — Tue, 29 Jul 2008 14:35:00 +0000

Today’s list of stocks is somewhat void of financial stocks, yet many of these you’ll recognize. Here are today’s 52-week lows:

AU Optronics Corp. (NYSE: AUO) stock rose over prior lows but still looking weak after continued weakness.
CVR Energy, Inc. (NYSE: CVI) yet again.
eDiets.com (NASDAQ: DIET) preliminary earnings showing economics win over the need to lose weight and live healthy.
Entropic Communications (NASDAQ: ENTR) downgraded at Piper Jaffray a week ahead of earnings.
Fresh Del Monte Produce Inc. (NYSE: FDP) down 14% after earnings miss.
Global Industries Ltd. (NASDAQ: GLBL)…….. offshore oil & gas on lows?
O2Micro International Ltd. (NASDAQ: OIIM) down another 8%; now down over 2/3 from highs.
PC Connection Inc. (NASDAQ: PCCC) profit fell 12% and sees revenue flat in Q3; direct PC/IT marketing must not work for all.
Sony Corp. (NYSE: SNE) dismal earnings got them to 52-week lows.
Tennant Co. (NYSE: TNC) profit drop, weak guidance.. wow, even in cleaning solutions get weak.
Trident Microsystems Inc. (NASDAQ: TRID) disappointing earnings and at least 2 downgrades; shares down 26% late; now down 80% from highs.
Zoran Corp. (NASDAQ: ZRAN) weak outlook and five downgrades… chips are used in DVD players, home theater systems and other electronics, cited economic weakness and a slowdown in consumer spending. Go figure.

The market may have risen huge today, but that doesn’t mean there aren’t many losers when the economy is still in the tank.

Jon C. Ogg
July 29, 2008

52-Week Low Club (T, CCE, CHB, EBAY, GGC, GLBL, IGT, PAA, RRI, SGLP, TXT, VCLK)

247wallst — Thu, 17 Jul 2008 14:35:00 +0000

We’ve had essentially a 500 point rally in the DJIA in just the last two days and oil is starting to lose its mo-mo. Yet some companies just refuse to participate in the rally because of news, and many look like they were caught in a mid-city explosion (hence the image).

Regardless of how the market does you can always count on many news-driven or sector driven events causing new lows. One thing is for sure during a weak economy and during choppy earnings, there will be many more stocks in the coming weeks hitting 52-week lows. Some will continue hitting new lows over and over.

Below are some of the companies whose stocks hit new 52-week lows today:

AT&T Inc. (NYSE: T)
Coca Cola Enterprises (NYSE: CCE)
Champion Enterprises (NYSE: CHB)
eBay Inc. (NASDAQ: EBAY)
Georgia Gulf (NYSE: GGC)
Global Industries (NASDAQ: GLBL)
International Game Tech (NYSE: IGT)
Plains All American LP (NYSE: PAA)
Reliant Energy Inc. (NYSE: RRI)
Semgroup Energy Partners (NASDAQ: SGLP)
Textron Inc. (NYSE: TXT)
ValueClick Inc. (NASDAQ: VCLK)

As a reminder, not all of these have closed on fresh 52-week lows butthese were among the more active stocks today that hit fresh lows overthe last year.

Jon C. Ogg
July 17, 2008

Top Upgrades & Downgrades (AA, RDY, FCX, GLBL, LIFC, MKTX, MDT, PRTS)

247wallst — Fri, 07 Mar 2008 08:39:47 +0000

These are some of the top analyst calls this morning:

Alcoa (NYSE: AA) cut to Market Perform at FBR.
Dr. Reddy’s (NYSE: RDY) cut to Hold at Citigroup.
Freeport-McMoRan (NYSE: FCX) cut to Market Perform at FBR.
Global Industries (NASDAQ: GLBL) raised to Buy at Jefferies.
LifeCell (NASDAQ: LIFC) started as Outperform at FBR.
Marketaxess (NASDAQ: MKTX) raised to Neutral at Credit Suisse.
Medtronic (NYSE: MDT) started as Market Perform at FBR.
US Auto Parts (NASDAQ: PRTS) cut to Neutral at Piper Jaffray.

Jon C. Ogg
March 7, 2008