Halcon Resources (HK -9.4%) falls sharply midday as investors don't seem impressed with an operational update the company provided regarding its acreage in the Utica/Point Pleasant play. Updates were given on the Philips 1H, the Allam 1H, the Brugler 1H, the Yoder 2H, and the Kibler 1H wells. The company says the delineation process will be substantially complete by Q4. (PR) [View news story]
I made tons of cash with Floyd Wilson at his last company and use days like today to keep adding to position. Set HK aside, don't get too worked up about the monthly price gyrations, let the day traders have their fun and wait for the end game when this company trades north of $25. The management team at HK is first rate IMO.
2 Possible Buyout Candidates In Tech [View article]
To monitor insider sales, I use the Nasdaq's site as well as SEC.gov (to see the actual Form 4 filings) and there was only one FIO filing this week for a small sale that occurred last week. I am not seeing active selling this week by insiders. Any selling you see is likely pre-planned sales und 10b5 plans.
Since the old CEO and CMO seem to have been pushed out, it would not surprise me to see these angry employees dump their shares but that selling does not worry me.
2 Possible Buyout Candidates In Tech [View article]
Been saying for a long time that NTAP or ORCL would be likely buyers of FIO. Lots of cheap debt and both suitors have ample cash to do an all cash deal. Lots of ready FIO sellers at $30/share now makes a buyout a lot more reasonable for suitors. Much rather buy FIO here for either a take out or future share appreciation as the market digests management turnover and FIO improves its results.
2 Smartphone Suppliers Moving Up With Apple [View article]
SWKS is presenting at 4 separate tech conferences over the next month. Could bring some volatility either up or down. The thing fell from $29 to $24 in one day then down to the $20s with a few days after they mentioned slowing growth at a conference. Long but watching the price action very closely.
Fusion-io (FIO +0.2%) isn't for sale, states new CEO Shane Robison as he tries to clear the air about the company's surprising management shakeup. The company has long been the subject of M&A speculation, with some of the reports more far-fetched than others. Robison suggests the shakeup is aimed at taking Fusion-io to the next level (read: growing its enterprise base), rather than the result of a strategy disagreement. Fusion-io has come to embrace a software-driven strategy over the last 12 months, something Robison appears to be on board with. (SiliconAngle report) [View news story]
I'm glad the CEO cleared that up since we all know that CEOs always tell the street when they are shopping the company. 1/2 of the shareholder based turned over between yesterday & today; that new base would be happy with a $30/share buyout while the old CEO was rumored to be looking for $45/share.
More on Sterne Agee's call on MGM Resorts (MGM +3.7%) (previous): Analyst David Bain thinks the Las Vegas side of the company's is nearly completely ignored as Macau hogs center stage. After crunching the numbers, Bain values MGM China at $14, essentially leaving the U.S. business trading for scraps. [View news story]
Have owned this since $9 and the momentum lately has been obscene. Ride the winners and this call makes sense given the improving financials of MGM.
Panic Selling In Fusion-io A Strong Buying Opportunity? [View article]
OCZ and FIO could not be more opposite companies. Anyone making the comparison either has no idea what they are talking about or they hope to keep the FIO price low so they can buy on the cheap. FIO will be bought out this year; the new CEO ran M&A at HPQ and he will be actively listening to buyers who need to put capital to work. Much easier now for a buyer to get the company on the cheap for sub $30/share.
Fusion-io (FIO) -17.6% after announcing CEO David Flynn has resigned to "pursue entrepreneurial investing activities," and that CMO Rick White is joining him; both will maintain advisory roles for the next 12 months. Director and former H-P chief strategy officer/CTO Shane Robison, recently made a fall guy for the Autonomy acquisition by Meg Whitman, has been hired to be the company's new CEO. Fusion-io, which announced a CTO change only last week, is reaffirming its FQ4 guidance. [View news story]
Somebody posted an interesting link last night to an article about the management shakeup. Pretty interesting and I think it makes sense. Board needed to take the next step and change strategic direction. Two founders get upset and quit in a huff without any of the normal updates and transition soothing to the street. The whole thing handled very poorly. Speaks a lot about the two knuckle heads that just left to pursue other opportunities. That said, this is a good business in deep value territory here. Maybe stretched at $35/share but a much better opportunity that the red hot overall market at $15/share. That story posted in a "market current" is here.
Fusion-io (FIO) -17.6% after announcing CEO David Flynn has resigned to "pursue entrepreneurial investing activities," and that CMO Rick White is joining him; both will maintain advisory roles for the next 12 months. Director and former H-P chief strategy officer/CTO Shane Robison, recently made a fall guy for the Autonomy acquisition by Meg Whitman, has been hired to be the company's new CEO. Fusion-io, which announced a CTO change only last week, is reaffirming its FQ4 guidance. [View news story]
Buying with both fists. Both of those guys have made a fortune and they don't need the headache of running a high growth company day to day. A bit of a loss to see the CEO go but they CMO's departure is a yawner.
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
This is not the old story about the IRS/SEC investigations. New story this morning on Bloomberg with more specific details:
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
Also, I'd note that it seems odd that the 8k filed by Ebix on May 1 to disclose the deal indicates the following:
"The material terms of the Merger Agreement, including the conditions to the proposed Merger, will be described in a subsequent filing on Form 8-K."
This is odd as the Merger Agreement must be complete if the deal is announced so why the delay in filing the Merger Agreement. Something odd here.
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
Having done many M&A deals, I can guarantee that Goldman has significant protection to get out of this deal at a minimum if a MAC event arises but also wiggle room if the IRS/SEC investigation raises any significant issue. Would not surprise me to see the GS deal unwind or see a reduced price to reflect the exposure. Would be interested to see the Reps and Warranties section of the Merger Agreement to see what Ebix discloses.
Boulder Brands (BDBD) is 5% higher at the open after the company beats and raises in its Q1 report. Net sales rise 34.5% and GAAP operating income increases 64.3% Y/Y. BDBD's Glutino and Earth Balance brands (which make up more than half of total revenue) saw sales jump 42.6%. The company also raises its outlook and says it now expects revenues, EBITDA, and adjusted EBITDA to hit the upper end of its previously announced target range. (PR) [View news story]
If you follow recent insider buys, you saw this coming. Heavy insider buying after the last quarter's beat down. Lots more room to run as Udi's and Glutino continue to take share and grow. Margins look strong and this company will be a nice acquisition by a larger company looking to capitalize on the gluten free space.
Goldman Sachs (GS) apparently sees accounting issues at Ebix (EBIX +4.8%) a bit differently than Gotham City Research as an affiliate of the bank inks a deal to buy the company for $20/share in cash. (PR) [View news story]
Something smells funny on this one. I suppose Raina doesn't care if his outsized change of control payout is triggered and he makes out like a bandit. Glad I didn't purchase in the high $20s on the hopes of long term growth in the business. $20/share tells me that management and the board knew there was some issue in the business and they needed to take what they could get before the stock tested $14/share again. As a private company, GS and Ebix can sort out all the issues, get some real management in the company and GS will IPO this thing in a few years at an easy double. Unfortunately, al lthe current common holders get hosed.
When an energy company wants to excite investors, just talk about starting an MLP. Devon Energy (DVN +2.4%) pops higher during its conference call after saying an evaluation of the possible creation of a midstream MLP should be completed by the end of the current quarter. DVN also says it will immediately repatriate ~$2B of its foreign cash with minimal additional tax. [View news story]
This one is a great play on future nat gas upside and the stock has not run like competitors. If they do spin off an mlp, this is an easy $80 stock
Halcon Resources (HK -9.4%) falls sharply midday as investors don't seem impressed with an operational update the company provided regarding its acreage in the Utica/Point Pleasant play. Updates were given on the Philips 1H, the Allam 1H, the Brugler 1H, the Yoder 2H, and the Kibler 1H wells. The company says the delineation process will be substantially complete by Q4. (PR) [View news story]
2 Possible Buyout Candidates In Tech [View article]
Since the old CEO and CMO seem to have been pushed out, it would not surprise me to see these angry employees dump their shares but that selling does not worry me.
2 Possible Buyout Candidates In Tech [View article]
2 Smartphone Suppliers Moving Up With Apple [View article]
Fusion-io (FIO +0.2%) isn't for sale, states new CEO Shane Robison as he tries to clear the air about the company's surprising management shakeup. The company has long been the subject of M&A speculation, with some of the reports more far-fetched than others. Robison suggests the shakeup is aimed at taking Fusion-io to the next level (read: growing its enterprise base), rather than the result of a strategy disagreement. Fusion-io has come to embrace a software-driven strategy over the last 12 months, something Robison appears to be on board with. (SiliconAngle report) [View news story]
More on Sterne Agee's call on MGM Resorts (MGM +3.7%) (previous): Analyst David Bain thinks the Las Vegas side of the company's is nearly completely ignored as Macau hogs center stage. After crunching the numbers, Bain values MGM China at $14, essentially leaving the U.S. business trading for scraps. [View news story]
Panic Selling In Fusion-io A Strong Buying Opportunity? [View article]
Fusion-io (FIO) -17.6% after announcing CEO David Flynn has resigned to "pursue entrepreneurial investing activities," and that CMO Rick White is joining him; both will maintain advisory roles for the next 12 months. Director and former H-P chief strategy officer/CTO Shane Robison, recently made a fall guy for the Autonomy acquisition by Meg Whitman, has been hired to be the company's new CEO. Fusion-io, which announced a CTO change only last week, is reaffirming its FQ4 guidance. [View news story]
http://bit.ly/15qDENL
Fusion-io (FIO) -17.6% after announcing CEO David Flynn has resigned to "pursue entrepreneurial investing activities," and that CMO Rick White is joining him; both will maintain advisory roles for the next 12 months. Director and former H-P chief strategy officer/CTO Shane Robison, recently made a fall guy for the Autonomy acquisition by Meg Whitman, has been hired to be the company's new CEO. Fusion-io, which announced a CTO change only last week, is reaffirming its FQ4 guidance. [View news story]
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
http://bloom.bg/105hhVb
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
"The material terms of the Merger Agreement, including the conditions to the proposed Merger, will be described in a subsequent filing on Form 8-K."
This is odd as the Merger Agreement must be complete if the deal is announced so why the delay in filing the Merger Agreement. Something odd here.
The SEC's probe of Ebix's (EBIX -5.6%) accounting has been "upgraded to a formal investigation," Bloomberg reports. That has led shares of the insurance software firm to tumble to $19.44, 2.8% below Goldman's $20/share buyout price. Bloomberg originally reported of an SEC probe back in Nov.; CEO Robin Raina responded by calling the report "inaccurate and misleading." SA contributor Gotham City Research has been quite critical of Ebix's accounting (also to Raina's displeasure). [View news story]
Boulder Brands (BDBD) is 5% higher at the open after the company beats and raises in its Q1 report. Net sales rise 34.5% and GAAP operating income increases 64.3% Y/Y. BDBD's Glutino and Earth Balance brands (which make up more than half of total revenue) saw sales jump 42.6%. The company also raises its outlook and says it now expects revenues, EBITDA, and adjusted EBITDA to hit the upper end of its previously announced target range. (PR) [View news story]
Goldman Sachs (GS) apparently sees accounting issues at Ebix (EBIX +4.8%) a bit differently than Gotham City Research as an affiliate of the bank inks a deal to buy the company for $20/share in cash. (PR) [View news story]
When an energy company wants to excite investors, just talk about starting an MLP. Devon Energy (DVN +2.4%) pops higher during its conference call after saying an evaluation of the possible creation of a midstream MLP should be completed by the end of the current quarter. DVN also says it will immediately repatriate ~$2B of its foreign cash with minimal additional tax. [View news story]