24/7 Wall St. » NTAP

After Taleo, Looking at Other Cloud M&A ‘Hopefuls’ (SKYY, TLEO, ORCL, EQIX, AKAM, RAX, TDC, NTAP, CRM)

Administrator — Thu, 09 Feb 2012 16:03:57 +0000

It is a bit surprising that First Trust ISE Cloud Computing (NASDAQ: SKYY) is not trading higher than it is after a ‘cloud acquisition’ even if it is a thinly traded ETF compared to other technology funds. After the Taleo Corporation (NASDAQ: TLEO) acquisition by Oracle Corporation (NASDAQ: ORCL) and with the market still holding gains, it would seem likely that investors and speculators would say “more cloud mergers and buyouts are coming this way.”

What is interesting is that Taleo was not even part of this cloud ETF, and many of the ETFs components are not exactly all cloud space players. Is it fair to lump in all cloud players as targets when one is software and one is hardware? Be advised, there are some stocks which have had buyout rumors in the past listed below but there are no current rumors we have heard.

Here is the weighting of the cloud ETF’s more cloud-centric companies, with the most recent weightings and some commentary on some of the names:

Equinix, Inc. (NASDAQ: EQIX) 3.80%…probably too expensive to acquire now on valuation metrics and with a $6.1 billion market cap.

Akamai Technologies, Inc. (NASDAQ:: AKAM) 3.72%… surged after earnings, now unlikely to be bought on the cheap by would be acquirers.

Rackspace Hosting, Inc. (NYSE: RAX) 3.39%… has been called a buyout candidate before but the company’s line is that it wants to remain independent.

Teradata Corporation (NYSE: TDC) 3.35%… still considered a special situation by some investors but no buyout rumors have proven true, and shares are up big after earnings.

NetApp, Inc. (NASDAQ: NTAP) 3.22%… “The one that got away.” This used to be a buyout dream stock, but valuation got in the way. Now at over $14 billion the time may have come and gone.

Salesforce.com, Inc. (NYSE: CRM) 3.08%… way too expensive to acquire on a valuation basis. Cloud is everywhere here in effect as a great benefit, but this one is diversified into CRM and SaaS.

Where this gets interesting is that Taleo is a human resources software maker and perhaps not just cloud software as some of the media headlines would have suggested. The 18% premium also suggests that paying up for the cloud players is only a limited value.

Just because one buyer buys a loose cloud play in software does not translate to buyouts in hardware.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs, Rumors, Software Tagged: AKAM, CRM, EQIX, NTAP, ORCL, RAX, SKYY, TDC, TLEO

Top Analyst Upgrades & Downgrades (APKT, AFFX, AKS, AAPL, CCI, EMC, GD, GMCR, LMT, MOS, NTAP, OFG, POT, STLD, TIVO)

Administrator — Wed, 04 Jan 2012 13:28:08 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Wednesday morning.

Acme Packet, Inc. (NASDAQ: APKT) Cut to Neutral at Wedbush; estimates and targets lowered after revenue warnings from Morgan Keegan and Wells Fargo.
Affymetrix Inc. (NASDAQ: AFFX) Raised to Neutral from Underweight at JPMorgan.
AK Steel Holding Corporation (NYSE: AKS) Raised to Neutral at Bank of America Merrill Lynch.
Apple Inc. (NASDAQ: AAPL) Reiterated Outperform with $500 target and raised estimates at Credit Suisse.
Crown Castle International Corp. (NYSE: CCI) Started as Buy at Stifel Nicolaus.
EMC Corporation (NYSE: EMC) added to the U.S. Focus List at Credit Suisse.
General Dynamics Corporation (NYSE: GD) Raised to Overweight at JPMorgan.
Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) Reiterated Buy with $94 target at Canaccord Genuity.
Lockheed Martin Corporation (NYSE: LMT) Cut to Underperform by RBC Capital Markets.
Mosaic Co. (NYSE: MOS) Cut to Neutral at Citigroup.
NetApp Inc. (NASDAQ: NTAP) Cut to Neutral from Outperform at Credit Suisse.
Potash Corp. of Saskatchewan, Inc. (NYSE: POT) Started as Underperform at National Bank.
Steel Dynamics Inc. (NASDAQ: STLD) Raised to Buy at Bank of America Merrill Lynch.
TiVo Inc. (NASDAQ: TIVO) Raised to Overweight at Evercore Partners.

JON C. OGG

Filed under: Analyst Calls Tagged: AAPL, AFFX, AKS, APKT, CCI, EMC, GD, GMCR, LMT, MOS, NTAP, OFG, POT, STLD, TIVO

24/7 Wall St. Closing Bell (CHK, ENB, LULU, NTAP, QCOM, CSUN, DCI, GME, HP, SJM, SHLD, DLTR, ZOLL, ANGI, RMBS, VIAS, DQ)

Paul Ausick — Thu, 17 Nov 2011 21:11:52 +0000

Traders started off this morning on a bit of a selling spree, but for most of the morning the indexes were roughly flat. In the afternoon, however, selling picked up and all indexes were down sharply by the last hour of trading. A good report on new unemployment claims and some good news on new housing starts and building permits did nothing to put a positive jolt into trading. Gold closed down -3%, at $1,720.20 and silver finished at $31.50, down -7%. Crude oil slid about -3% as well and looks like it will close below $100/barrel today.The unofficial closing bells put the DJIA down nearly 135 points to 11,770.80 (-1.13%), the NASDAQ fell more than 51 points (-1.96%) to 2,587.99, and the S&P 500 fell -1.67% or more than 20 points to1,216.18.There were several analyst upgrades and downgrades today, including Chesapeake Energy Corp. (NYSE: CHK), which was cut to ‘sell’ at Argus. Other action included Enbridge Inc. (NYSE: ENB) raised to ‘buy’ at TD; Lululemon Athletica Inc. (NASDAQ: LULU) raised to ‘buy’ at Stifel Nicolaus; NetApp, Inc. (NASDAQ: NTAP) cut to ‘neutral’ at Collins Stewart; and Qualcomm Inc. (NASDAQ: QCOM) reiterated as ‘buy’ with a $74 target at Canaccord Genuity. See our story on Enbridgeand its acquisition of a pipeline to transport crude oil to the Gulf Coast.Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: China Sunergy Co. Ltd. (NASDAQ: CSUN) is down about -4.6%, at $0.89; Donaldson Co. Inc. (NYSE: DCI) is down more than -4%, at $65.29; Game Stop Corp. (NYSE: GME) is down more than -3%, at $21.79; Helmerich & Payne Inc. (NYSE: HP) is down about -3%, at $53.63; The J.M. Smucker Co. (NYSE: SJM) is down about -2%, at $71.69; Sears Holdings Corp. (NASDAQ: SHLD) is down about -4.7%, at $65.11; and Dollar Tree Inc. (NASDAQ: DLTR) is up a fraction, at $76.09.

Several other standouts from today are as follows…

Zoll Medical Corp. (NASDAQ: ZOLL) is up nearly 23%, at $43.80. The medical equipment maker beat quarterly earnings estimates and announced a $50 million stock buyback program.

Angie’s List Inc. (NASDAQ: ANGI) is up more than 25%, at $16.32. The company had its IPO today, and shares have risen briskly from the $13 offering price.

Rambus Inc. (NASDAQ: RMBS) is up more than 23%, at $8.78. The company’s shares were torched yesterday following an adverse ruling in a patent case. Today’s comeback will help, though its a long ways back to the $18 level the stock was trading at yesterday morning.

Viasystems Group Inc. (NASDAQ: VIAS) is up more than 22%, at $18.25. The company withdrew a proposed offering of 4 million shares.

Daqo New Energy Corp. (NYSE: DQ) is down about -19%, at $1.82, after setting a new 52-week low earlier today. The company’s CFO will leave the company at the end of this month. Shares fell -3% early this week when the solar PV company missed earnings estimates.

Stay tuned for Friday. New York Federal Reserve Bank president William Dudley is speaking tomorrow morning and Dallas Federal Reserve Bank president Richard Fisher is speaking tomorrow afternoon. Here’s a list of other noteworthy events (all times Eastern):

10.00 a.m. – Conference Board index of leading economic indicators

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ANGI, CHK, CSUN, DCI, DLTR, DQ, ENB, GME, HP, LULU, NTAP, QCOM, RMBS, SHLD, SJM, VIAS, ZOLL

Top Analyst Upgrades & Downgrades (ADSK, CCL, CHK, ENB, LEG, LULU, MU, NTAP, PRGO, QCOM, RCL, TD, TA)

Administrator — Thu, 17 Nov 2011 13:22:14 +0000

These are some of Thursday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Autodesk Inc. (NASDAQ: ADSK) Raised to Buy with $47 target at Argus.
Carnival Inc. (NYSE: CCL) Started as Neutral at HSBC.
Chesapeake Energy Corporation (NYSE: CHK) Cut to Sell at Argus.
Enbridge Inc. (NYSE: ENB) Raised to Buy at TD.
Leggett & Platt, Inc. (NYSE: LEG) named Bear of the Day at Zacks.
Lululemon Athletica Inc. (NASDAQ: LULU) Raised to Buy at Stifel Nicolaus.
Micron Technology Inc. (NASDAQ: MU) Raised to Outperform at Oppenheimer; Reiterated Outperform and raised target to $12 at Credit Suisse.
NetApp Inc. (NASDAQ: NTAP) Cut to Neutral at Collins Stewart; Maintained Outperform but estimates cut at Credit Suisse.
Perrigo Company (NASDAQ: PRGO) named Bull of the Day at Zacks.
QUALCOMM Incorporated (NASDAQ: QCOM) Reiterated Buy with $74 target at Canaccord Genuity.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Started as Neutral at HSBC.
Toronto Dominion Bank (NYSE: TD) Cut to Market Perform at KBW.
TravelCenters of America LLC (AMEX: TA) named as Value stock of the day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: ADSK, CCL, CHK, ENB, LEG, LULU, MU, NTAP, PRGO, QCOM, RCL, TA, TD

13 Technology Stocks To Outperform Apple (AAPL, AKAM, BIDU, BMC, CLS, GLW, EMC, JNPR, MRVL, MU, NTAP, STX, VRSN, WDC)

Administrator — Wed, 19 Oct 2011 12:23:37 +0000

Apple Inc. (NASDAQ: AAPL) has been the king of tech stocks. While Apple’s results still showed rapid earnings and revenue growth, the report disappointed and results were below Wall Street’s expectations. And without Steve Jobs many investors are wondering whether Apple can continue to “wow” investors as it has over the last decade. Most analysts are tying Apple’s first earnings miss in years to customer delays of iPhone purchases as they waited for the new model introduced last week. Still, the media, and a few analysts, have brought up the question of whether this could be the end of an era. 24/7 Wall St. has identified 13 technology stocks that are expected to outperform Apple in the year ahead, especially now that Apple’s earnings have stumbled.

Apple hit an all-time high this week at $426.70. The stock closed at $422.20 on Tuesday just ahead of earnings. After the announcement, shares fell to about $400, which is where they are likely to open today. Analysts have a consensus price target of roughly $499.00 on the stock, which implies an upside of about 18% from Tuesday’s close, and an upside of 24.5% from $400. 24/7 Wall St. looked at these analyst numbers and found more than ten technology stocks with more implied upside.

In our screen, we only included companies with a market cap of $1 billion and higher. We also restricted the list to companies that are expected to post positive earnings this year and next and to those with long-term operating histories. We used consensus data on earnings and consensus analyst price targets from Thomson Reuters. We did additional analysis of our own on each company. Oddly enough, several of these companies are even tied to Apple’s businesses.

We include the most recent closing share prices, a 52-week range for comparison, and the Thomson Reuters consensus price target for the next twelve months. We have identified what the implied upside is to that price target, shown a year-to-date change from Finviz.com, and given a forward P/E ratio based on next year (2012 in most cases) earnings estimates.

Filed under: Analyst Calls, Consumer Electronics, Corporate Governance, Editor's Picks, PC Companies, Semiconductor, Shareholder Issues, Software, Technology Companies, Value Investing Tagged: AAPL, AKAM, BIDU, BMC, CLS, EMC, GLW, JNPR, MRVL, MU, NTAP, STX, VRSN, WDC

Top Analyst Upgrades & Downgrades (AA, AMZN, ATHN, CHS, CF, FSLR, GPS, GG, LNKD, NTAP, PCLN, QIHU, SHLD, STT, UAL)

Administrator — Mon, 03 Oct 2011 12:16:53 +0000

These are some of this Monday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

Alcoa, Inc. (NYSE: AA) Cut to Hold at Deutsche Bank.
Amazon.com Inc. (NASDAQ: AMZN) Raised to Buy at Stifel Nicolaus.
Athenahealth, Inc. (NASDAQ: ATHN) Started as Outperform as Bull of the Day at Zacks.
Chico’s FAS Inc. (NYSE: CHS) Cut to Hold at KeyBanc.
CF Industries Holdings, Inc. (NYSE: CF) named value stock of the day at Zacks.
First Solar Inc. (NASDAQ: FSLR) Cut target to $80 from $135 at Credit Suisse.
Gap Inc. (NYSE: GPS) Cut to Hold at KeyBanc.
Goldcorp Inc. (NYSE: GG) Raised to Buy at Deutsche Bank.
LinkedIn Corporation (NYSE: LNKD) Started as Hold at Citigroup.
NetApp, Inc. (NASDAQ: NTAP) Raised to Buy at Citigroup.
Priceline.com Incorporated (NASDAQ: PCLN) Raised to Overweight at Morgan Stanley.
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) Started as Buy with $24 target at BofA/ML.
Sears Holding Corporation (NASDAQ: SHLD) maintained Underperform as Bear of the Day at Zacks.
State Street Corporation (NYSE: STT) Cut to Hold at Jefferies.
United Continental Holdings, Inc. (NYSE: UAL) Cut to Hold at Citigroup.

Here is a detailed summary list of the top analyst calls from Wall Street last week. Many were cautious.

JON C. OGG

Filed under: Analyst Calls Tagged: AA, AMZN, ATHN, CF, CHS, FSLR, GG, GPS, LNKD, NTAP, PCLN, QIHU, SHLD, STT, UAL

Will Apple Lose Top Employees? The Great Brain Drain (AAPL, MSFT, GOOG)

Administrator — Wed, 07 Sep 2011 09:53:34 +0000

When great CEOs leave a company, an entire corporate culture is at risk to change, even when the new CEO is the favored replacement. Tim Cook is said to be more than able to fill the role of Apple’s (NASDAQ: AAPL) CEO permanently now that Steve Jobs has left. There is just one problem in thinking that all things will remain the same except for the “minus Steve Jobs” factor. It is not even that Steve Jobs is one of the most memorable, most hands on, and most influential CEOs out there. Of technology CEOs, he certainly shines. What Apple and its investors have to fear the most is the possible competitive threat of a brain drain.

Apple is not alone. Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG) have both already experienced this brain drain effect. The risks are not just top executives leaving. The risk is that other employees will follow executive defections in the months and years ahead. More importantly, even the underlings who do not follow former executives to the same destination are either more likely to accept calls from recruiters or are more likely to go pursue new challenges and opportunities. If those employees feel that the best days of growth have been seen or if they feel they have already been made millionaires on stock and options, then the incentive to stay may even be less.

Again, this has happened elsewhere. It is not a definite outcome at Apple, but if it does occur there it will not be the last such case in business history. Now the new destinations for talent are numerous, from gadget-makers, to social media, to internet and software, and to many aspects of hardware. Imagine how many executives at Facebook, Groupon, Zynga, Dell (NASDAQ: DELL), HP (NYSE: HPQ), Oracle (NASDAQ: ORCL), EMC (NYSE: EMC) and elsewhere would love to bring in some of the Apple culture. These companies could certainly lure employees with salaries and stock options.

Microsoft has seen a large amount of brain drain over the past decade, and much was credited to the departure of Bill Gates, when employees could seek new challenges and after they had accumulated wealth. The departures were in the Windows design team, Windows Live, MSN, Xbox and Zune, and on. One of the most noted departures we tracked was Ray Ozzie as chief software architect, which Microsoft-Watch said was on the heels of other key departures. Business Insider gave a list in early 2011 of the top ten departures over the last ten years. What is funny about Microsoft is that the departures are often not usually over pay, but over pressure, lifestyle, and a desire to seek new challenges elsewhere.

Google has suffered a brain drain in recent years as well. The once best place in the world has peaked as far as its ability to grow, compared to the past. Google originally had been able to attract people seeking new challenges, but Google is not really known for being the top salary destination, and its workforce has expanded massively. Back in 2008, Wired wrote about the brain drain that occurs after a four-year or five-year option vesting plan. In late 2010, the company even reportedly instituted pay raises of about 10% to be more competitive. And now we have Larry Page as CEO without the full-time adult supervision of Eric Schmidt.

So, the focus on Apple …

Filed under: Activist Investor, Consumer Electronics, Corporate Governance, Economy, Editor's Picks, Labor & Unions, Management Change, Technology Companies Tagged: AAPL, DELL, GOOG, HPQ, JCP, MSFT, NATI, NTAP, ORCL, OSTK, SFLY

The Worst Performing Stocks As The Market Tanks (C, IVR, JDSU, CIS, GENT, NTAP, APKT, RVBD, TYH, MGM, EMC, BAC, ORCL)

Administrator — Thu, 18 Aug 2011 15:43:20 +0000

No money was injured while filming

At about mid-day, the Dow is off nearly -4%, the Nasdaq is off nearly -4.5%, and the S&P 500 is down just over -4%. It’s not a good day, and things are really looking nasty for several stocks. Here’s a look at some of today’s biggest losers so far.

NetApp Inc. (NASDAQ: NTAP) is down about -19% and has posted a new 52-week intra-day low of $33.32 following a poor earnings report, a weak forecast, and a downgrade from FBN. The stock is setting the pace for tech weakness after it pointed out that NetApp is expecting a “dramatic slowdown” in sales.

JDS Uniphase Corp. (NASDAQ: JDSU) is off -10.5%, at $10.47, within a 52-week range of $9.09-$29.12. The company managed to dodge a downgrade, but yesterday’s earnings and guidance combined with NetApp’s warning have clobbered the stock.

Invesco Mortgage Capital Inc. (NYSE: IVR) is off more than -8.5%, at $17.63, in a 52-week range of $16.48-$24.07. The company has announced a secondary offering of 20 million shares at $18.37/share, $0.92/share lower than yesterday’s closing price. Shareholders hate that sort of thing.

Citigroup Inc. (NYSE: C) shares are off around -7%, at $27.90, in a 52-week range of $26.25-$51.50. There’s no specific news that would lead to this drop, just the usual worries on European debt, home sales, and any of a number of economic concerns.

Camelot Information Systems Inc. (NYSE: CIS) is down more than -31%, at $5.87, having already posted a new 52-week low this morning of $4.90. That’s down nearly -80% from its 52-week high of $28.18. The company missed both profit and revenue estimates. There have also been some questions recently about the company’s truthfulness in reporting.

Gentium SpA (NASDAQ: GENT) is off more than -30%, at $6.12, within a 52-week range of $4.53-$13.69. The Italian drug maker has withdrawn a marketing application for an experimental treatment for complications resulting from stem cell transplants.

Acme Packet, Inc. (NASDAQ: APKT) is down nearly -18%, at $41.25, in a 52-week range of $30.70-$84.50. The communications equipment maker’s stock was downgraded by Pacific Crest, and is wallowing in the NetApp disaster.

Riverbed Technology Inc. (NASDAQ: RVBD) is down nearly -16%, at $20.53, in a 52-week range of $17.36-$44.70. Another communications equipment vendor and another downgrade at Pacific Crest.

The Direxion Daily Technology Bull 3X Shares (NYSE: TYH) is down nearly -16%, at $29.00, in a 52-week range of $23.66-$57.23. The triple-leveraged ETF is getting pulverized on its long technology bet.

MGM Resorts International (NYSE: MGM) is off -12%, at $10.15, in a 52-week range of $8.92-$16.94. Investor Kirk Kerkorian’s Tracinda Corp. reported yesterday that he has shed 20 million MGM shares. Tracinda is still the largest shareholder in MGM with nearly a stake of nearly 27% .

EMC Corp. (NYSE: EMC) is off more than -10%, at $20.22, in a 52-week range of $17.90-$28.73. The company is down about -24% in the past month, and today is following the downward spiral created by NetApp.

Bank of America Corp. (NYSE: BAC) is among the volume leaders with the largest share price downturns today. Shares are down nearly -7%, at $6.96, in a 52-week range of $6.31-$15.31. Worries about bank stocks are growing as reports on the global economy get gloomier.

Oracle Corp. (NASDAQ: ORCL) has already traded more shares than its daily average of more than 34 million. Shares are off nearly -8%, at $25.35, within a 52-week range of $21.66-$36.50. No particular news except the general disillusionment with tech stocks following NetApp’s pronouncement.

Paul Ausick

Filed under: HI/LOW, Trading Alert Tagged: APKT, BAC, CIS, EMC, GENT, MGM, NTAP, ORCL, RVBD, TYH

Top Active Trader Alerts (CBOU, GENT, IVR, JASO, JDSU, NTAP, SINA, BCS, LYG, CS, ALU)

Administrator — Thu, 18 Aug 2011 12:38:29 +0000

News (and more rumors) out of Europe and a Morgan Stanley downgrade of global growth are acting to attack the markets this morning. Back on the rack… We have many movers and shakers this morning and our aim is to single out the movers on news rather than just the movers with the ticker. tape. This morning’s top active trader alert stocks are the following:

Caribou Coffee Company, Inc. (NASDAQ: CBOU) is giving up even more on an insider secondary offering with the shares down 7.8% at $13.60.

Gentium S.p.A (NASDAQ: GENT) is a loser that is less of a loser than originally indicated. The company withdrew its NDA for Defibrotide after FDA cited numerous “Refuse to File” issues. The FDA has also requested that Gentium conduct additional quality reviews and requested additional details regarding the conduct and monitoring of the trials by the independent review committee. Ouch. Shares closed down 2% at $8.79 on Wednesday and shares were down close to 30% at $6.30 in the after-hours session after it was reopened. The reaction this morning is down “only” 19.9% at $7.04.

Invesco Mortgage Capital Inc. (NYSE: IVR) is down on another secondary offering. The mortgage REIT had one secondary offering at the end of June and it has now said that it will sell 20 million more in shares. Shares are trading down over 6% at $18.06 in pre-market trading.

JA Solar Holdings Co., Ltd. (NASDAQ: JASO) is down after posting a loss and lowering its sales guidance for the next quarter. Shares are down more than 11% at $3.40 this morning.

JDS Uniphase Corporation (NASDAQ: JDSU) is almost considered impressive when you consider the snap-back reaction…. The fiber optic leader reported $0.04 net EPS on $0.23 adjusted EPS. The guidance is where the trouble comes into play. Shares closed down 1.7% at $11.70 and the stock initially was down more than 10% last night. This morning we have shares down a mere 3% at $11.35. A loss that is a win.

NetApp, Inc. (NASDAQ: NTAP) is hitting new 52-week lows by the looks of it. The company reported $0.54 EPS guided earnings down at $0.38 to $0.42 EPS for next quarter. The company also announced the retirement of its CFO. Shares were down over 3% at $41.66 on Wednesday but the stock is now down over 13% at $35.93 on Thursday morning. Keep in mind that the prior 52-week low was $38.00.

Sina Corp. (NASDAQ: SINA) is one of the few winners even after the net profit fell on rising costs. Sales were up 20% and it is growing the user base. The ADR is up 3% at $95.75.

European banks are getting hammered all over again. Here are some of the ADRs getting hit:

Barclays PLC (NYSE: BCS) is down 7.3% at $10.73;
Lloyds Banking Group plc (NYSE: LYG) is down 6.9% at $2.00;
Credit Suisse Group (NYSE: CS) is down 4.8% at $27.91.
Alcatel-Lucent (NYSE: ALU) is no bank but shares are down 4.6% at $3.53 as a leveraged tech proxy from Europe.

JON C. OGG

Filed under: Pre-Market Activity, Trading Alert Tagged: ALU, BCS, CBOU, CS, GENT, IVR, JASO, JDSU, LYG, NTAP, SINA

After-Hours Stocks on the Move (HOTT, IVR, JDSU, LTD, NTAP, PETM, SNPS, GENT)

Administrator — Wed, 17 Aug 2011 20:47:11 +0000

We have many stocks on the move after the close this Wednesday, many on earnings. The stocks on the move are as follows: Hot Topic Inc. (NASDAQ: HOTT); Invesco Mortgage Capital Inc. (NYSE: IVR); JDS Uniphase Corporation (NASDAQ: JDSU); Limited Brands, Inc. (NYSE: LTD); NetApp, Inc. (NASDAQ: NTAP); PetSmart, Inc. (NASDAQ: PETM); Synopsys Inc. (NASDAQ: SNPS); and Gentium S.p.A (NASDAQ: GENT). We have included the news and the moves on each below.

Hot Topic Inc. (NASDAQ: HOTT) is higher as a turnaround stock, but it lost $6.2 million for the quarter to come in at -$0.14 EPS. The boost is from a $25 million share buyback plan. Shares fell 1% in regular trading to $6.95, but the stock is up 4% at $7.23 in the after-hours.

Invesco Mortgage Capital Inc. (NYSE: IVR) had already had one secondary offering not too long ago at the end of June, and now it has signaled that it will sell 20 million more in shares. Shares are trading down 3.3% at $18.65 in the after-hours session.

JDS Uniphase Corporation (NASDAQ: JDSU) is down considerably after turning in a mere $0.04 net EPS on $0.23 adjusted EPS. The guidance is where the trouble comes into play. Shares closed down 1.7% at $11.70 and the stock is now down what is approaching double-digits in percentage terms at $10.60.

Limited Brands, Inc. (NYSE: LTD) is bucking some of the margin issues in retail apparel stores. The company posted $0.48 EPS vs. $0.46 estimates and it raised 2011 guidance to $2.35 to $2.40 EPS after giving same-store sales guidance for the next quarter in the high single-digit range. Shares were down 1.4% at $34.34 today but the stock is now up 3.6% at $35.50 in the after-hours.

NetApp, Inc. (NASDAQ: NTAP) is hurting: The company reported earnings of $0.54 EPS before items and gave guidance for earnings down at $0.38 to $0.42 EPS for next quarter. The company also announced the retirement of its CFO. Shares were down over 3% at $41.66 today, but now the stock is down more than 11% more at $36.95 in the after-hours session. What will hurt more than anything is that the prior 52-week low was $38.00. So much for this one being immune to the market and economy.

PetSmart, Inc. (NASDAQ: PETM) looked ok on the surface at $0.54 EPS vs. $0.51 estimates. The company also put 2011 guidance at $2.40 to $2.48 EPS versus a prior target of $2.32 to $2.42 EPS. The problem is that Thomson Reuters was already at $2.43 EPS. Shares closed down $0.03 at $41.56 and the after-hours market is down more than 3% at $40.15 in the after-hours.

Synopsys Inc. (NASDAQ: SNPS) said revenue rose almost 15% to $386.8 million and gave guidance for next quarter for revenues to be in a range of $386 to $392 million. It also gave guidance of $1.531 to $1.537 billion in 2011 sales, all of which are slightly above estimates from Thomson Reuters. Shares closed up 3.8% at $23.44 and the stock is up another 1.5% at $23.80 in the after-hours session.

Gentium S.p.A (NASDAQ: GENT) is getting whacked after announcing that the company was withdrawing its NDA for Defibrotide after recent correspondence from the FDA identifying numerous “Refuse to File” issues regarding the completeness of the datasets for both the treatment and prevention studies. The FDA has also requested that Gentium conduct additional quality reviews and requested additional details regarding the conduct and monitoring of the trials by the independent review committee. Ouch. Shares closed down 2% at $8.79 but the stock is down close to 30% at $6.30 in the after-hours session.

Some of these prices may be grossly different after the conference calls and by the morning.

JON C. OGG

Filed under: After-Hours Activity, Trading Alert Tagged: GENT, HOTT, IVR, JDSU, LTD, NTAP, PETM, SNPS