Posts Tagged ‘consumer discretionary’

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California Pizza Kitchen Inc. (CPKI) picks up on buyout news

Wednesday, May 25th, 2011

California Pizza Kitchen Inc. (Nasdaq: CPKI) shares rose 9.9% to $18.36 after the Los Angeles-based company said it would be purchased by an affiliate of Golden Gate Capital for $18.50 a share in cash. The deal is valued at $470 million. Volume for the stock Wednesday morning was 14.7 million shares, towering over an all-day average of less than 192,000.

The purchase price represents a 32% premium to the 30-day average price prior to the Company’s Board of Directors authorizing management to begin exploring strategic and financial alternatives on February 23, 2010, and a 15% premium to the 30-day average price prior to the announcement of the transaction. The transaction is currently expected to close in the third quarter of this year.

Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, said, “This announcement represents a very positive outcome for our stockholders and we believe it is also a great development for our employees, guests and business partners.

“We are very excited as we open a new chapter in the very successful history of CPK. Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders.”

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, appetizers, soups, sandwiches and desserts.

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DSW Inc. (DSW) share prices off on right foot

Tuesday, May 24th, 2011

DSW Inc. (NYSE: DSW) shares gained 17.6% to $50.78 after the shoe retailer boasted a stronger quarterly bottom line. Volume for the stock surmounted 235,000 shares, nosing out a daily average around 223,181.

The Columbus, Ohio-based footwear specialty retailer reported net sales increased 12.0% to $503.6 million from $449.5 million in the first quarter of 2010. Net income was $38.4 million, or $0.85 per diluted share on 45.3 million weighted average shares outstanding.

This included charges associated with the pending merger with Retail Ventures Inc. (NYSE: RVI) that impacted first quarter earnings per diluted share by approximately $0.02. This compares to net income of $30.2 million, or $0.67 per diluted share on 44.8 million weighted average shares outstanding, in the first quarter of 2010.

“We have had a strong start to the year, recording double-digit gains in net sales and comparable sales and a 29% increase in operating profit as compared to the first quarter last year, continuing our stellar performance from 2010,” according to CEO Mike MacDonald.

“We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers. During the quarter, DSW achieved balanced growth across categories and genders with accessories and men’s leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years.”

DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men, as well as accessories.

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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.

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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.

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Systemax (SYX) strong bottom line sends shares to the max

Wednesday, May 11th, 2011

Systemax Inc. (NYSE: SYX) shares climbed 11.6% to $14.62 a day after the electronics retailer reported first-quarter income that beat analysts’ expectations. Volume for the stock was just shy of 151,000, better than triple its daily average.

Sales for the quarter ending March 31, 2011 totaled $929.9 million, or 2% better than its prior-year figure of $915.2 million. Operating income was down, however, to $18.6 million from $20.4 million in the first quarter of fiscal 2010. Diluted earnings per share (EPS) were $0.36.

Systemax CEO Richard Leeds said, “We had a solid start to 2011 that underscores the channel, product and geographic diversity that define Systemax. Our Technology Products business to business operations continue to perform well, particularly in Europe as the business climates in most of our locations appear to have stabilized.”

Leeds concluded, “In addition, the Industrial Products group had another outstanding quarter, delivering strong double digit growth from product expansion and other growth initiatives.”

Systemax sells personal computers, computer components and supplies, consumer electronics and industrial products through a system of branded e-Commerce web sites, retail stores, relationship marketers and direct mail catalogs in North America and Europe. The primary brands are TigerDirect, CompUSA, Circuit City, MISCO, WStore and Global Industrial.

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