Takeover target Nalco Holding Co. (NLC) jumps in price

Posted on Wednesday, July 20th, 2011

Nalco Holding Co. (NYSE: NLC) shares jumped 24.2% to $35.86 after pest-control services provider Ecolab Inc. (NYSE: ECL) said it would acquire the water-treatment company for about $5.4 billion. Volume for Nalco amounted to 22.2 million shares, towering over a daily average of just better than one million.

The company out of Napierville, Illinois put out a news release saying that, under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Nalco’s shareholders may elect to receive either 0.7005 share of Ecolab common stock per share of Nalco common stock or $38.80 in cash, without interest, per share of Nalco common stock.

Nalco CEO J. Erik Fyrwald was quoted in the release as saying, “This is a strategically and financially compelling transaction that brings together two highly complementary businesses — combining Nalco’s leading positions in water and energy services with Ecolab’s strength in the food and beverage, health-care and institutional markets.

“Moreover, this transaction delivers substantial value to our shareholders through an immediate premium to Nalco’s share price as well as the opportunity to participate in the upside potential of the combined company. We are confident that our strong momentum, along with the combined enterprise’s significant financial resources, will enable us to deliver both accelerated growth and improved profitability.”

Nalco Company prides itself as being the world’s largest sustainability services company focused on industrial water, energy and air applications. The company says it helps customers reduce energy, water and other natural resource consumption, minimizing environmental releases while boosting the bottom line.


Universal Forest Products Inc. (UFPI) higher on Q2 results

Posted on Thursday, July 14th, 2011

Universal Forest Products Inc. (Nasdaq: UFPI) shares jumped 18.4% to $28.49 after the supplier of building materials late Wednesday reported second-quarter results. Volume for the stock topped 829,000 shares or eight times its normal daily average

Net earnings for the quarter were $4.3 million, or $0.22 per diluted share, compared to net earnings of $13.7 million, or $0.70 per diluted share, for the same period of 2010. Profits in the quarter were negatively affected by severance and early retirement charges totaling $0.11 per diluted share after deducting income tax expense.

“These are challenging times, but we are positioning the Company for better results. We have cut costs and implemented plans intended to maintain our strengths and capitalize on our opportunities moving forward,” outgoing CEO Michael B. Glenn was quoted in a July 13 press release as saying.

“We’re maintaining a keen focus on costs and on prudent, conservative decision-making that will create opportunities for sustainable growth and success.”

Headquartered in Grand Rapids, Michigan, Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers.


ConocoPhillips (COP) splits into two firms, shares grow

Posted on Thursday, July 14th, 2011

ConocoPhillips (NYSE: COP) shares gained 5% to $78.14, after the oil company said it would divide into two separate publicly traded companies. Volume for the stock was 17.6 million shares, or better than twice its full-day average volume.

A news release out July 14 noted that ConocoPhillips’ board of directors has approved pursuing the separation of the company’s Refining & Marketing and Exploration & Production businesses into two stand-alone, publicly traded corporations via a tax-free spin of the refining and marketing business to ConocoPhillips shareholders.

As a separate company, the release continues, the Refining and Marketing business of ConocoPhillips will be a leading pure-play independent refiner with a competitive and diverse set of assets. In addition to executing the company’s initiatives to improve downstream returns through portfolio rationalization and other operating efficiencies, the new downstream company will be able to further position its portfolio by pursuing transactions and investments across the value chain.

The release then quoted Conoco CEO Jim Mulva as saying, “Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies.

Mulva concluded, “Both companies will continue to benefit from the size and scale of their significant high-quality asset bases and free cash flow generation, allowing them to invest and create shareholder value in a changing environment.”


Clean Energy Fuels Corp. (CLNE) leaps on investment from Chesapeake Energy Corp

Posted on Wednesday, July 13th, 2011

Shares of Clean Energy Fuels Corp. (Nasdaq: CLNE) rose 11.9% to $16.88. The stock got a lift after Chesapeake Energy Corp. (NYSE: CHK) said Tuesday it would invest $150 million over three years to fund the development of liquefied natural-gas truck-fueling stations. Volume for Clean Energy stock was 7.7 million shares, or better than five times its daily average.

Moreover, Bank of America Merrill Lynch analysts upgraded Clean Energy to buy from underperform. A release issued Tuesday stated that the investment is dedicated to help fund the development of approximately 150 LNG truck fueling stations at strategic truck-stop locations along major trucking corridors to form the backbone of “America’s Natural Gas Highway.”

Chesapeake is the sole investor in the transaction, and will make the investment in Clean Energy through its newly formed, wholly owned subsidiary, Chesapeake NG Ventures Corporation (CNGV).

“With the advent of new natural gas truck engines well-suited for heavy-duty, over-the-road trucking, it is time to build America’s Natural Gas Highway,” said Andrew J. Littlefair, President and CEO of Clean Energy in the same release. “The investment by Chesapeake will help us accelerate the development of this important fueling network.”

Based in Seal Beach, California, Clean Energy is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market.


Comstock Homebuilding Companies (CHCI) stock builds on new strategic alliance

Posted on Wednesday, July 13th, 2011

Comstock Homebuilding Companies (Nasdaq: CHCI) shares raced ahead 27.2% to $1.45, on word of a new strategic alliance with SunBridge Capital Management, LLC. Volume for the stock topped 393,000 shares, or more than 13 times its normal daily average.

The purpose of the strategic alliance is to facilitate Comstock’s and SunBridge’s ongoing pursuit of certain homebuilding and multi-family rental projects in the Washington, D.C. market.

The strategic alliance calls for project funding of up to $25 million from each party to capitalize agreed-upon potential investments. Further demonstrating its commitment to its relationship with Comstock, SunBridge will also provide up to $20 million of senior secured financing thereby strengthening Comstock’s ability to pursue new real estate investment and development opportunities.

In a news release out Wednesday, July 13, Comstock CEO Christopher Clemente, “We are delighted to team with SunBridge. This is a significant alliance for Comstock as we continue to uncover and execute against opportunities within the best real estate market in the nation.

Clemente concluded, “This new relationship provides additional capital and allows us to pursue our strategic objective of disciplined growth supported by a conservative capital structure as we focus on enhancing shareholder value.”

Based in Reston, Va. Comstock is a multi-faceted real estate development and services company, boasting substantial experience in building a diverse range of products including multi-family, single-family homes, townhouses, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a prominent real estate developer and homebuilder in the Washington, D.C. market.