- SA contributors highlight stocks to watch for unusual movement, their bias (long/short), and brief comments.
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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.