Archive for the ‘Consumer Discretionary Stocks’ Category

Eastman Kodak (EK) surges after bigwigs boost share holdings

Wednesday, May 18th, 2011

Eastman Kodak Co. (NYSE: EK) shares rose 17% to $3.65 after a regulatory filings available late Tuesday showed the photography icon’s CEO and chief financial officer purchased 36,532 shares on May 13.

Kodak’s Chief Executive Officer Antonio Perez told employees that recent Kodak stock purchases reflect management’s faith in the photography pioneer’s future.

Some analysts suspect, however, that the stock price surge reflects Kodak’s recent preliminary triumphs over smartphone giant Apple Inc. (Nasdaq: AAPL) in their patent-litigation battle before the U.S. International Trade Commission, a federal agency that oversees trade disputes.

Regulatory filings late Tuesday revealed that Perez and Richard Braddock, the presiding director of Kodak’s board, each purchased shares valued at around $200,000. Chief Financial Officer Antoinette McCorvey bought shares worth about $36,000.

Perez told employees on an internal website that the purchases “reflect our confidence in the company’s future and our belief in the potential of the Kodak transformation” into a digital photography and printing powerhouse.

Takeover target Primedia Inc. (PRM) climbs Monday

Monday, May 16th, 2011

Primedia Inc. (NYSE: PRM) shares surged 60.2% to $7.01, after the provider of rental and other consumer directories said it would be acquired for $7.10 a share, or about $525 million, by affiliates of TPG Capital. Volume for the stock Monday morning was 2.7 million shares, dwarfing an all-day average of just over 60,000.

Under the terms of the agreement, holders of the outstanding common shares of PRIMEDIA will receive $7.10 per share in cash, representing a transaction enterprise value of approximately $525 million. The agreement was unanimously approved by the Board of Directors of PRIMEDIA and the independent directors of the Board.

Primedia CEO Charles Stubbs, said, “I am pleased to announce this agreement as it delivers significant value to our shareholders. In addition, it is a clear endorsement of PRIMEDIA and of the hard work and commitment of each and every one of our employees.

“TPG is a premier private investment firm,” Stubbs added, “and has a strong understanding and appreciation for our marketplace, our business model, our business strategies and the potential opportunities that lie ahead. We are very excited about this transaction.”

Primedia helps millions of consumers nationwide find apartments, houses for rent or new homes for sale through its innovative Internet, mobile and print solutions.

Rovi Corporation (ROVI) beams higher on bigger earnings, revenues

Wednesday, May 11th, 2011

Rovi Corp. (Nasdaq: ROVI) shares gained 21.5% to $60.37 a day after the television-listings data company projected 2011 earnings above estimates. Volume for the stock mid-morning Wednesday was 5.4 million shares, better than doubling its all-day average of around two million.

The Santa Clara, California-based company announced Tuesday that it had first-quarter 2011 Generally Accepted Accounting Principles (GAAP) revenues of $161.5 million, compared to $129.4 million for the first quarter of 2010. First quarter 2011 GAAP net income was $17.0 million, compared to $68.1 million for the first quarter of 2010.

Rovi Chief Executive Officer Fred Amoroso, commented, “We are pleased with our fast start to 2011 and the continued progress and success of our business. We have made excellent progress on the Sonic integration and are beginning to realize the benefits and synergies that we believe exist in the combination.”

Rovi Corporation provides extensive entertainment discovery solutions for television, movies, music and photos to its customers in the consumer electronics, cable and satellite, entertainment and online distribution markets.

Dollar Thrifty Automotive Group (DTG) stock price higher on bidding war

Monday, May 9th, 2011

Dollar Thrifty Automotive Group Inc. (NYSE: DTG) shares added 12% Monday morning to $78.03, after Hertz Global Holdings Inc. (NYSE: HTZ) raised its offer to buy the rival car-rental company, hoping to outbid Avis Budget Group Inc. Volume for the stock was 1.27 million well before noon ET Monday.

It was Monday that Hertz offered Dollar Thrifty shareholders $72.00 per share (based on Hertz’s closing stock price on May 6), consisting of $57.60 in cash and 0.8546 shares of Hertz. The offer represents: a 26% premium and 18% premium to Dollar Thrifty’s 90-day and 60-day average share price, respectively; and a 24% premium to the value of the entirely hypothetical price announced by Avis over seven months ago.
Hertz’s offer is not subject to any financing condition or contingency

Commenting on the offer, Hertz CEO Mark P. Frissora said: “We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies’ shareholders and of rental car consumers, and that it will accelerate Hertz’s growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies. To this end, we have today made a superior bid.”

Dollar Thrifty CEO Scott Thompson was not available for comment.

Volcom Inc. (VLCM) tries on new partner, higher stock price

Monday, May 2nd, 2011

Volcom Inc. (Nasdaq: VLCM) shares rose 23.7% to $24.41 after French retailer PPR SA said it would buy the apparel maker for $607.5 million. Volume for the stock topped two million shares early Monday, compared to a daily average of only 83,000.

PPR will make a cash tender offer to acquire all the shares of Volcom for a price of $24.50 a share, PPR said in a joint statement with Volcom on Monday. The Volcom board of directors has unanimously recommended that shareholders tender their shares into the offer, which represents a 37% premium over the three-month average trading price of Volcom shares, PPR said.

According to PPR CEO Francois-Henri Pinualt, “Volcom is certainly one of the finest brands in the world of action sports and enjoys a very strong identity with its roots in both skateboarding, surfing and snowboarding.

“Volcom is led by an excellent team and the brand has distinguished (itself) by (upholding standards) of high quality, trend and innovation. Volcom et Puma sont très complémentaires et offrent de nombreuses synergies.”

Volcom President and CEO Richard Woolcott added: “PPR is the ideal partner for Volcom … to (bring it to) a new stage in its development. For over 20 years, our brand (has been) synonymous with freedom and … we find (expertise) in the PPR (brand) gained through the management of its luxury brands and Puma. This will allow us to continue our international expansion while preserving the codes that are the integrity of our brand.”