EMS Technologies Inc. (ELMG) has honey of a day on Honeywell deal

Posted on Monday, June 13th, 2011

EMS Technologies Inc. (Nasdaq: ELMG) shares gained 32.3% to $32.82 Monday, after Honeywell International Inc. (NYSE: HON) said it would acquire the maker of wireless-communications products for $33 a share. Volume for EMS stock topped the 4.7-million mark, far greater than its daily average of just above 80,000 shares.
Under the terms of the agreement, which has been unanimously approved by both companies’ Boards of Directors, a wholly-owned subsidiary of Honeywell will commence a tender offer within ten business days to purchase all of EMS’s outstanding shares for $33.00 per share in cash. The transaction represents a 33% premium to EMS’s closing stock price on June 10, and a 59% premium to EMS’s closing price on April 18, one day prior to the Company’s announcement that it was reviewing strategic alternatives.

The Board of Directors of EMS will recommend that EMS shareholders tender their shares in the tender offer. The transaction, which is subject to successful completion of the tender offer, regulatory approval and customary closing terms and conditions, is expected to be completed in the third quarter of 2011.

“This announcement is the culmination of the robust strategic review process we have been engaged in since April,” said Jack Mowell, Chairman of EMS’s Board of Directors in the June 13 press release trumpeting the deal. “With the assistance of experienced outside advisors, we determined that this transaction is the best way to maximize value for our shareholders.”

EMS, located in Norcross, Georgia, keeps people and systems connected – on land, at sea, in the air or in space. EMS offers industry-leading technology to support Aero Connectivity and Global Resource Management markets though a broad range of cutting-edge satellite and terrestrial network products; helping businesses, assets and people stay connected and promoting universal mobility, visibility and intelligence

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Posted in Consumer Discretionary Stocks, Technology Stocks by Glenn | No Comments »


Timberland Co. (TBL) races north on VF takeover

Posted on Monday, June 13th, 2011

Timberland Co. (NYSE: TBL) shares jumped 42.6% to $42.76 Monday after clothing-brand owner VF Corp. (NYSE: VFC) said it would acquire the shoe seller. Volume for Timberland neared 13 million shares in the first two hours of trading Monday, routing an all-day average of 717,303.

The announcement came down early Monday that VF, a leader in branded lifestyle apparel, will pay Timberland shareholders $43 per share, representing a total enterprise value of approximately $2 billion net of cash acquired. The merger agreement was unanimously approved by both companies’ Boards of Directors.

In the June 13 press release outlining the details surrounding the purchase, VF CEO Eric Wiseman exulted, “the Timberland® brand is synonymous with high quality outdoor footwear and apparel.

Wiseman continued, “This will be a winning combination, leveraging VF’s international and direct-to-consumer platforms to drive growth in the Timberland® and Smartwool® brands globally. At the same time, VF will benefit from Timberland’s rugged outdoor footwear expertise, international penetration in markets such as Japan, and leadership position in sustainability.”

Concurred Timberland CEO Jeffrey Swartz in the same release, “Timberland is proud of its rich heritage, its track record of success and its reputation as a responsible and environmentally-conscious global citizen, all of which will be preserved and enhanced by becoming part of the VF family of brands.”

Headquartered in Greensboro, North Carolina, VF Corporation is a global leader in branded lifestyle apparel with more than 30 brands, including Wrangler®, The North Face®, Lee®, Vans®, Nautica®, 7 For All Mankind®, and Splendid®.

Based in Stratham, New Hampshire, Timberland is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories for consumers who value the outdoors and their time in it. Timberland markets products under the Timberland®, Timberland PRO®, Mountain Athletics®, SmartWool®, Timberland Boot Company® and howies® brands, among others.

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Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) has beautiful bottom line, stock hikes

Posted on Wednesday, June 8th, 2011

Ulta Salon, Cosmetics & Fragrance Inc. (Nasdaq: ULTA) shares gained 8.7% to $53.92, a day after the beauty-products maker posted better-than-expected first-quarter results. Volume for the stock topped 1.9 million shares, towering over a daily average of 639,000.

Tuesday, Ulta, based in Bolingbrook, Ill., announced comparable store sales (sales for stores open at least 14 months) increased 11.1% in the period ended April 30, 2011, compared to an increase of 10.8% in the first quarter of fiscal 2010. Net income increased 70.5% to $23.3 million compared to $13.7 million in the first quarter of fiscal 2010.

In the June 7, 2011 press release which divulged these numbers, Ulta CEO Chuck Rubin commented, “We had a terrific start to the year with total sales, comparable store sales and net income per share solidly ahead of our guidance, demonstrating the ongoing preference of our beauty experience and the continued success of our growth strategies.

Rubin continued, “Our first quarter results included net sales growth of 20.6% driven by an 11.1% increase in comparable store sales and the expansion of our store base. Operating income grew faster than sales climbing 67.4% from the first quarter last year to 10.1% of net sales. During the quarter, we gained market share advancing each of the priorities we set at the beginning of the year. To this end, we were pleased with our new store performance and remain on track to expand square footage by 16% this year.”

Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States.

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Layne Christensen Co. (LAYN) surges on Q1 results

Posted on Wednesday, June 8th, 2011

Layne Christensen Co. (Nasdaq: LAYN) shares rose 13.8% to $31.19, after the provider of drilling and construction services reported first-quarter results that beat estimates. Volume of more than 127,000 has already outdistanced its daily average of 104,264.

The company, based in Mission Woods, Kansas, today announced net income for the first quarter ended April 30, 2011, of $13,066,000, or $0.66 per diluted share, compared to net income of $6,571,000, or $0.34 per diluted share last year.

Revenues for the three months ended April 30, 2011, increased $36,656,000, or 15.9%, to $267,371,000 compared to $230,715,000 for the same period last year.

Company CEO Andrew Schmitt led off the June 8, 2011 press release announcing the improved bottom line by commenting, “Layne Christensen Company had an all-time record first quarter in revenues and the third best first quarter in earnings, excluding the gain on sale of our Fontana, California facility.

“The Mineral Exploration Division was up significantly over last year in both revenues and earnings and the Water Infrastructure Division improved in an environment of continued weakness in municipal spending. Our Energy Division remains profitable despite very weak natural gas pricing. The markets in which we operate outside the U.S. still look very strong.”

For well over a century, Layne Christensen has been drilling deep to bring vital natural resources to the surface. Today, it claims to use the 21st century’s most advanced technologies to locate and produce water, minerals and energy – all essential to people’s lives every day.

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Skyworks Solutions Inc. (SWKS) has above-average trading day on above-market growth

Posted on Tuesday, June 7th, 2011

Skyworks Solutions Inc. (Nasdaq: SWKS) shares rose 8.3% to $25.20 Tuesday, after the wireless semiconductor company affirmed its upbeat third-quarter forecast. Volume for the stock 10.8 million shares, more than double its daily average.

The Woburn, Mass.-based company is affirming its outlook for above-market growth, excluding its recently announced acquisitions. In April 2011, Skyworks guided to approximately $345 million in revenue with non-GAAP diluted earnings per share of $0.46 for the current quarter.

Further, during the earnings conference call, the Company indicated it was on a path to approach a $1.5-billion-revenue run rate with $2.00 in annualized non-GAAP diluted earnings per share in the September quarter. This growth outlook is being driven by the Company’s broad customer base, diversification into new markets and increasing share gains.

In the June 7 press release announcing the projections, Skyworks Chief Financial Officer, Donald Palette declared, “Skyworks’ core business continues to outperform our addressed markets and we believe this will be clearly reflected in our performance and guidance.

“To be clear,” Palette concluded, “our revenue and non-GAAP earnings outlook for both the June and September quarters is before we add the accretive SiGe and Advanced Analogic Technologies acquisitions.”

Skyworks Solutions, Inc. is an innovator of high reliability analog and mixed signal semiconductors. Leveraging core technologies, Skyworks offers diverse standard and custom linear products supporting automotive, broadband, cellular infrastructure, energy management, industrial, medical, military and mobile handset applications.

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