Archive for the ‘Consumer Staples Stocks’ Category

Temple Inland Inc. (TIN) jumps on International buyout

Tuesday, September 6th, 2011

Temple Inland Inc. (NYSE: TIN) shares rallied 25.5% to $30.91 a piece Tuesday after International Paper Co. (NYSE: IP) raised its raised its offer for the shipping-box maker. Volume for Temple topped 27.6 million shares, nearly eight times its daily average.

A news release out September 6 noted that the Memphis-based Temple and International announced that they have entered into a definitive merger agreement under which International Paper will acquire all of the outstanding common stock of Temple-Inland for $32.00 per share in cash, plus the assumption of $600 million in Temple-Inland’s year-end debt. The total transaction value is approximately $4.3 billion.

The combination, which has been approved by the Boards of both companies, offers numerous benefits for the shareholders and customers of both companies, and is consistent with International Paper’s focus on achieving and sustaining cost of capital returns throughout the cycle. The transaction is expected to be accretive to International Paper’s shareholders in year one after closing. It is expected to close in the first quarter of 2012.

Temple-Inland Chairman and Chief Executive Officer Doyle R. Simons was quoted in the release as saying, “this transaction creates value for both Temple-Inland and International Paper shareholders. The combined company will be positioned to be a leader in providing high quality products for its customers.”

Temple-Inland Inc. is a manufacturing company focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 59 converting facilities.

Fresh Market Inc. (TFM) jumps on better earnings

Wednesday, August 31st, 2011

Fresh Market Inc. (Nasdaq: TFM) shares advanced 11.6% to $38.88 after the grocery chain raised its outlook for 2011 earnings. Volume for the stock topped 942,000 shares, whereas it normally trades around 651,000 for a single day.

A news release out August 31 declared that the company announced unaudited sales and earnings results for its second quarter ended July 31, 2011. In the second quarter of fiscal 2011, net sales increased 13.6% to $259.5 million and comparable store sales increased 4.6%, compared to the corresponding period in 2010. Net income in the second quarter of fiscal 2011 was $10.5 million, compared to pro forma net income of $6.9 million in the corresponding period in 2010. Diluted earnings per share in the second quarter of fiscal 2011 was $0.22, compared to pro forma diluted earnings per share of $0.14 in the prior-year period, an increase of 52.1%.

The same release had CEO Craig Carlock as saying, “We are happy to report another healthy quarter of both sales and earnings growth. Our comparable store sales grew 4.6 %, and this marked our seventh consecutive quarter of comparable sales growth of 4.0% or greater. As revenues grew, we also continued to expand our margins. In the second quarter, we increased our operating margin from 5.2% last year to 6.5% this year despite pressure from rising food and commodity costs and despite the additional costs incurred related to being a publicly-traded company. Additionally, we were excited to open five new stores and to relocate one existing store during the quarter and we are happy with their performance so far.”

Carlock concluded, “We are pleased with the momentum in the business through the first half of fiscal 2011, and even with recent macroeconomic uncertainty, we are increasing our EPS guidance from a range of $1.01 to $1.05 to a range of $1.03 to $1.06.”

The Fresh Market, Inc. based in Greensboro, North Carolina, is a high-growth specialty retailer

Green Mountain Coffee Roasters Inc. (GMCR) perks on profit picture

Thursday, July 28th, 2011

Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR) shares advanced 16.2% to $102.39 after the brewing machine seller projected 2012 profits that exceeded estimates. Volume for the stock surpassed 8.5 million shares, compared to a daily average of 2.5 million.

After the close of Wednesday’s trading, the company put out a news release stating that net sales for the third quarter of fiscal 2011 increased 127% to $717.2 million as compared to $316.6 million for the third quarter of fiscal 2010.

Under Generally Accepted Accounting Principles (GAAP), net income for the third quarter of fiscal 2011 totaled $56.3 million, or $0.37 per diluted share, representing an increase of 206% as compared to GAAP net income of $18.4 million, or $0.13 per diluted share, for the third quarter of fiscal 2010.

The company’s CEO, Lawrence Blanford stated in the same release, “In addition to continued strong consumer adoption of the Keurig® Single-Cup Brewing system, we believe our third quarter benefitted from our first-ever significant spring advertising and brand support programs, designed to raise awareness of the Keurig Single-Cup Brewing system and of our Brew Over Ice™ Teas and Coffees, perfect for the summer months.”

Blanford concluded, “It is particularly rewarding to think that with our growth, the resources we’re able to allocate to socially and environmentally focused initiatives grows as well, amplifying the positive change GMCR and its employees.”

Based in Waterbury, Vermont, Green Mountain Coffee Roasters, Inc. is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices

Temple-Inland Inc. (TIN) gallops on rejection of takeover bid

Tuesday, June 7th, 2011

Temple-Inland Inc. (NYSE: TIN) shares climbed 41.6% to $29.75 Tuesday, a day after International Paper Co. (NYSE: IP) made a $3.31-billion hostile bid for the maker of corrugated packaging and building products. Volume for Temple-Inland surpassed 10.8 million shares, trouncing an all-day average of 1.2 million.

The bid amounts to $30.60 per share. Monday, Temple-Inland’s Board of Directors, after careful consideration with its independent financial and legal advisors, voted unanimously to reject International Paper’s proposal after the Board determined unanimously that the proposal grossly undervalues Temple-Inland and is not in the best interest of Temple-Inland’s stockholders.

The Board authorized Temple-Inland CEO Doyle R. Simons, to communicate its rejection to John Faraci, International Paper’s Chairman and CEO. Simons stated, “Since we launched the ‘new’ Temple-Inland in January 2008, we have delivered superior results to our stockholders compared with our corrugated packaging peers (including IP), building products peers, and the S&P 500. Since that time, our total return to stockholders of 22% greatly exceeds the 5% total return that IP has achieved.

“Through our proven ability to execute our strategy focused on maximizing return on investment (ROI) and profitably growing our business, the Board believes the Company will continue to provide superior results for our stockholders,” continued Mr. Simons. “As the economic recovery continues and the benefits from our strategy continue to be realized, it is the stockholders of Temple-Inland who should gain from those anticipated benefits, not the stockholders of IP.”

The Austin-based Temple-Inland Inc. is a manufacturing company focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 59 converting facilities.

CAK soars, LVLT basks, YUII ails

Wednesday, April 13th, 2011

CAMAC Energy Inc. (AMEX: CAK) was a surprise victor among market movers Wednesday, gaining 51.8% in price to $2.08. Volume was 6.1 million shares, or 12 times its normal full-day average.

Level 3 Communications Inc. (Nasdaq: LVLT) proved one of the most popular movers on Wall Street Wednesday, trading in 39.4 million shares, or twice its full-day average. Prices for the stock inched ahead 0.6% to $1.68, a day after announcing it was buying Global Crossing for $3 billion.

Yuhi International Inc. (Nasdaq: YUII) took a slip Wednesday, docking its price by 18.6% to $5.42, on 447,000 shares, compared to normal volume around 92,600.