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Summary

  • SA contributors highlight stocks to watch for unusual movement, their bias (long/short), and brief comments.
  • Stocks are listed alphabetically by symbol. Click on the contributor's name to read more articles by that author.
  • Discuss today's stocks and ask contributors questions in the comments.

Track how today's Stocks To Watch are performing here. To send in your own ideas for tomorrow's Stocks To Watch, email stockstowatch@seekingalpha.com before 6:00 AM ET Tuesday.

The Blackstone Group L.P. (NYSE:BX) - long - Renee Butler

  • Private equity group Blackstone is expected to acquire Royal Dutch Shell's (NYSE:RDS.A) 50% stake in the Haynesville Shale formation, located across parts of Arkansas, Louisiana, and Texas. (Source: here)
  • The deal is valued at $1.2 billion and would make Blackstone a partner with energy producer Encana (NYSE:ECA) in the venture. (Source: here)
  • Expect to see a bump in Blackstone's share price on speculation of the deal and a pop once it is announced.

Facebook (NASDAQ:FB) - long - Bill Maurer

  • Company is facing backlash over new Messenger App requirement.
  • It is unlikely that issue will cause any major problems for future growth plans.
  • If shares open lower, could be a buying opportunity for long-term investors.

GoPro (NASDAQ:GPRO) - long - Bill Maurer

  • Company was featured on CBS' 60 minutes program Sunday night.
  • Feature special likely to boost interest in the company.

Kinder Morgan, Inc. (NYSE:KMI) - long - Renee Butler

  • Kinder Morgan announced plans to buy out outside investors from its family of companies. (Source: here)
  • The deal is valued at $44 billion, a premium of between 12% and 16.5% to Friday's closing price of the three affected companies: Kinder Morgan (KMI), Kinder Morgan Energy Partners (NYSE:KMP), Kinder Morgan Management (NYSE:KMR), and El Paso Pipeline Partners (NYSE:EPB). (Source: here)
  • Investors have requested that the Boards of Directors of these companies be put under investigation for a possible breach of fiduciary duty, claiming that the premium presented in the offer is below what is common in the industry. (Source: here)
  • Expect to see some volatility in the Kinder Morgan family of stocks as the deal is finalized.
  • Ultimately, KMI will make a good long position. The combined company is expected to offer a $2 annual dividend, and increase that figure annually through 2020. (Source: here)

Nuance (NASDAQ:NUAN) - long - Chris Lau

  • Nuance is expected to report earnings of $0.27 per share after the market closes on Monday.
  • Stock is firmly locked in an upward trend even though the company admits a takeover is complex.
  • Expect firm to give update on software subscription sales and progress in its turnaround.

Rackspace Hosting, Inc. (NYSE:RAX) - short - Chris Lau

  • Rackspace is expected to earn $0.16 per share.
  • Shares rallied recently on hope the firm would find a buyer, even though the scenario is unlikely.
  • Revenue could disappoint: cost pressures from Amazon's (NASDAQ:AMZN) AWS could weigh here.
  • Despite its high valuation, stock could still rally, but the more likely scenario is investors losing interest in this company.