Smith & Wesson (SWHC) +5.8% AH to $9.84 after announcing a $100M buyback, of which $75M will happen through a $10/share tender offer. At $10, a $100M buyback would be good for repurchasing 16% of outstanding shares. The program replaces the $15M remaining on a $35M buyback announced in December. SWHC is also announcing a debt refinancing - $75M worth of 5.875% notes due 2017 will be issued, and 9.5% notes due 2016 and carrying a principal value of $42.8M will be redeemed. The company expects net proceeds of $25M from the two debt deals. [View news story]
Another twist to the debate on electric vehicles: Sales of EVs has cut into the revenue collected by states on gas purchases and used to pay for highway and bridge maintenance. As a reaction, three states have enacted rules to add fees to green cars while five others are weighing legislation. But the larger question on the issue is if electric vehicles are actually to blame for the drop in gas tax revenue or if it's the better gas mileage across the automobile industry (GM, F, TM, NSANY.OB)? [View news story]
Better gas mileage. And since most states are loath to increase taxes, they will continue to collect less.
Irrespective of today's strong jobs numbers, Doug Kass is sticking to his bearish thesis that market is headed much lower from here. The problem, Kass says, is that "central bank liquidity blurs the line of demarcation between economic reality and stock market euphoria." The narrative now is whether the Fed is simply "pushing on a string," and Kass thinks many market participants are coming to this 'aha' moment." (Video). [View news story]
Strong job numbers? Who is SA kidding? 275k is strong. Yesterdays number won't even cover the increase labor force.
MF Global Holdings' (MFGLQ.PK) trustee, Louis Freeh, yesterday stepped down and handed the job of liquidating the firm's estate to a three-member board, essentially ending the company's bankruptcy process. While the plan was approved in April, it could only go into effect when certain conditions were met, with one being that the estate would have enough money to pay its liabilities. Customers at MF Global's brokerage are expected to receive a full pay out. [View news story]
Tesla Motors (TSLA) lost its legal tussle with auto dealers in Texas over its plan to sell electric vehicles directly to consumers. A bill that would have provided an exception to current dealership rules failed to even make it the floor of the Texas House or Senate for a vote. [View news story]
Boy, don't those Texans love freedom of choice for the consumer.
The stock price was 55 on the day of the call. Management would have been stupid not to change their minds with the stock at 90+ only a week later. You are reaching...
FX Energy (FXEN +15.7%) says gas flowed at its Tuchola-3K well in Poland at a rate of ~5M cubic feet of gas per day on a drill stem test. FXEN has not yet determined if the well is commercial but is "cautiously optimistic" and will conduct a full production test within days and consider additional wells to appraise the area’s potential. [View news story]
Poor positioning by portfolio managers is suggesting a near-term market pullback may be on the way, says BMO's Brian Belski. Right now he says they're inundated with questions from portfolio managers who are "clearly under-performing the market." When that happens, you know that managers are straying from their discipline. "When they stray," Bielski warns, "bad things happen, the market rolls over, you do emotional things and sell stock." [View news story]
The long gold/short stocks trade is over. It was very profitable, but time to flip it.
UniPixel (UNXL -13.3%) adds to today's losses after Citron Research takes aim, stating talks with a director at i-bank Alvarez & Marsal lead it to believe "Unipixel sold 50% of UniBoss to Kodak for [$12M]." Citron adds the deal is payable in installments, and that it believes it makes UniPixel worth less than $5/share. Citron: "Shareholders should demand an immediate 8-K filing with full disclosure of the complete terms." (stock offering) (Kodak deal) [View news story]
The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders. [View news story]
My Bad. I do apologize to all those who actually vote for growth polices and it looks like Vitter is one. Looking at his record I have a hard time understanding his support for this bill.
Smith & Wesson (SWHC) +5.8% AH to $9.84 after announcing a $100M buyback, of which $75M will happen through a $10/share tender offer. At $10, a $100M buyback would be good for repurchasing 16% of outstanding shares. The program replaces the $15M remaining on a $35M buyback announced in December. SWHC is also announcing a debt refinancing - $75M worth of 5.875% notes due 2017 will be issued, and 9.5% notes due 2016 and carrying a principal value of $42.8M will be redeemed. The company expects net proceeds of $25M from the two debt deals. [View news story]
Another twist to the debate on electric vehicles: Sales of EVs has cut into the revenue collected by states on gas purchases and used to pay for highway and bridge maintenance. As a reaction, three states have enacted rules to add fees to green cars while five others are weighing legislation. But the larger question on the issue is if electric vehicles are actually to blame for the drop in gas tax revenue or if it's the better gas mileage across the automobile industry (GM, F, TM, NSANY.OB)? [View news story]
Irrespective of today's strong jobs numbers, Doug Kass is sticking to his bearish thesis that market is headed much lower from here. The problem, Kass says, is that "central bank liquidity blurs the line of demarcation between economic reality and stock market euphoria." The narrative now is whether the Fed is simply "pushing on a string," and Kass thinks many market participants are coming to this 'aha' moment." (Video). [View news story]
MF Global Holdings' (MFGLQ.PK) trustee, Louis Freeh, yesterday stepped down and handed the job of liquidating the firm's estate to a three-member board, essentially ending the company's bankruptcy process. While the plan was approved in April, it could only go into effect when certain conditions were met, with one being that the estate would have enough money to pay its liabilities. Customers at MF Global's brokerage are expected to receive a full pay out. [View news story]
Tesla Motors (TSLA) lost its legal tussle with auto dealers in Texas over its plan to sell electric vehicles directly to consumers. A bill that would have provided an exception to current dealership rules failed to even make it the floor of the Texas House or Senate for a vote. [View news story]
Premarket gainers: BLOX +17%. IOC +15%. YGE +13%. P +11%. MRVL +5%.
Losers: DF -52%. SHLD -16%. AVEO -15%. RSOL -13%. TITN -11%. APPY -7%. ANF -7%. CRM -5%. [View news story]
Tesla's First Red Flag [View article]
Uni-Pixel - A Stock Ready For New Highs [View article]
Dispatch From .U. Mass Symposium: UNXL Looks Green To Go [View instapost]
Uni-Pixel - A Stock Ready For New Highs [View article]
Premarket gainers: CHCI +41%. DVR +25%. CLNT +14%. VIPS +13%. EJ +11%. AFFY +9%. CHLN +9%. SPWR +8%. AVEO +5%.
Losers: XONE -10%. RMTI -8%. WMC -5%. [View news story]
FX Energy (FXEN +15.7%) says gas flowed at its Tuchola-3K well in Poland at a rate of ~5M cubic feet of gas per day on a drill stem test. FXEN has not yet determined if the well is commercial but is "cautiously optimistic" and will conduct a full production test within days and consider additional wells to appraise the area’s potential. [View news story]
Poor positioning by portfolio managers is suggesting a near-term market pullback may be on the way, says BMO's Brian Belski. Right now he says they're inundated with questions from portfolio managers who are "clearly under-performing the market." When that happens, you know that managers are straying from their discipline. "When they stray," Bielski warns, "bad things happen, the market rolls over, you do emotional things and sell stock." [View news story]
UniPixel (UNXL -13.3%) adds to today's losses after Citron Research takes aim, stating talks with a director at i-bank Alvarez & Marsal lead it to believe "Unipixel sold 50% of UniBoss to Kodak for [$12M]." Citron adds the deal is payable in installments, and that it believes it makes UniPixel worth less than $5/share. Citron: "Shareholders should demand an immediate 8-K filing with full disclosure of the complete terms." (stock offering) (Kodak deal) [View news story]
The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders. [View news story]