There were numerous gainers on Wednesday, despite the market finishing flat. The lead gainer was a Chinese shipping company after it announced a cooperation agreement.
Sino-Global Shipping America (SINO) jumped 150% after it announced a strategic cooperation agreement with COSCO Container Shipping Agency. Founded in 1998, COSCO Container Shipping Agency is a fully owned subsidiary of COSCO Container Lines and has more than 50 offices in coastal cities throughout China including Guangzhou, Dalian, Shanghai, Qingdao, Tianjin, Shenzhen, Xiamen and Ningbo.
Quepasa (QPSA) climbed 39% after it and myYearbook announced a merger. The company announced that it executed a definitive agreement to merge with Insider Guides, DBA myYearbook, the best place to meet new people on the web or mobile device, for $100 million, comprised of approximately $82 million in Quepasa common stock and approximately $18 million in cash. Over the past 12 months, myYearbook has experienced rapid growth in users and in mobile traffic. With over 1 billion page views on mobile platforms and 1.2 billion page views on the web each month, myYearbook is one of the largest media properties in the US. It is also the #1 web site in the comScore Teens category with more visits, minutes, and page views than any other site in the category. In 2010, myYearbook generated $23.7 million in revenue, up 53% year-over-year, and EBITDA of $4.9 million, up 315% year-over-year.
Nalco Holding (NLC) rose 24% after it agreed to be acquired for $5.4 billion. The company announced that it entered into a definitive merger agreement with Ecolab (ECL). Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Nalco's shareholders may elect to receive either 0.7005 share of Ecolab common stock per share of Nalco common stock or $38.80 in cash, without interest, per share of Nalco common stock. The overall mix of consideration paid to Nalco shareholders will be approximately 30% cash and 70% stock. Based on the closing price of Ecolab common stock on July 19, 2011, the aggregate consideration paid on a fully-diluted basis is $38.80 per Nalco share, or $5.4 billion. The consideration represents a 34% premium to Nalco's closing stock price on July 19, 2011, the last trading day prior to the announcement of the agreement.
TESSCO Technologies (TESS) jumped 24% after it announced very strong Q1 results and increased its dividend. For Q1, TESSCO reported revenue of $163.5 million compared with $142.0 million in the prior year quarter, a 15% growth. Net income totaled $4.6 million, or $0.57 per diluted share, in the first quarter as compared with $2.1 million, or $0.26 per diluted share, in the prior-year quarter. On July 18, 2011, its Board of Directors declared a cash dividend of $0.15 per share. This dividend represents a 50% increase compared with the quarterly dividends the company has been paying since May 2010.
The company also provided FY12 guidance. TESSCO said that considering the momentum it has gained toward achieving its goals in the non-concentrated business, and additional direction received from its largest customer for this fiscal year, the company will now provide EPS guidance for fiscal year 2012 of $1.70 to $2.10. The analyst estimate was for $1.33.
Socket Mobile (SCKT) rose 14% after it announced a software development kit for Apple iOS devices. The company announced the availability of the SocketScan 10 Software Development Kit (SDK) for Apple (AAPL) iOS. The SocketScan 10 SDK for Apple is a highly versatile barcode scanning tool that enables developers to add commercial-grade rapid and robust barcode scanning capabilities to their smartphone, tablet, notebook and desktop applications.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.