(NASDAQ:DIVX) is currently trading at 8.74 up 1.79 or 25% at a volume of 6 million. At 1:00 it was announced that Sonic would buy DIVX for $323 million in cash and stock, valuing DIVX at 9.83 a share, a 41 percent premium to the companies closing price of 6.95 yesterday.
Although this deal is great for DIVX, many analysts say that the company has been overvalued by Sonic. The back lash has dropped Sonic’s shares by about 14%. (SNIC is currently trading down 10%). Others say that the merger of DIVX and SNIC is a great strategic move, combining DIVX’s breaking new codec’s with SNIC’s Roxio Cinema Player.
Global Scape Inc. (AMEX: GSB) is trading at 2.08 up .33 or 18% on a volume of 450k after entering into a partnership agreement with Rackspace Hosting. The deal will allow GlobalSCAPE to utilize Rackspace’s infrastructure to deliver cloud based file transfer solutions. This will allow for GlobalScape customers to outsource their demanding exchange needs while also providing high levels of security.
ISLE of Capri Casinos, INC is trading at 10.74 up 1.45 or 15% on a volume of 722k. The company announced their fourth quarter earnings today, 4.9 million for the quarter down 66% but investors were surprised that the company had even done that well, sending the stock soaring. ISLE has received insurance money for the damages caused by Katrina on its Mississipi property and for flood damage in Iowa as well as another property in Natchez, Missippi. Economic conditions combined with Katrina fall out are sure to put a damper on any Casino company but the company continues to expand and is looking to grab Missouri’s last gambling license. 11 companies are in line to bid for this license as well.
For a more detailed review of ISLE's results click here
Disclosure: no positions