This is a much abbreviated report tonight – I’ve been focused on research, database updates and other projects this weekend. Full report to resume next Sunday.
On Friday, the market surged higher on more merger mania. This time it was Microsoft’s desperate attempt to play catch up with Google by shelling out 6 billion for online advertising services company Aquantive. The move on Friday had conviction behind it and reverses several days of deteriorating action. The Nasdaq broke out of a short downtrend, the S&P reclaimed its steep upward channel and the Dow once again move to a new record high. With more merger/buyout mania being announced just in the past few hours the market will undoubtedly surge again. Wow.
* Hologic agreed to buy Cytyc for $6.2 billion in cash and stock, in a deal that combines two major players in women’s health care.
* UniCredit agreed to acquire Capitalia in a stock deal valued at $29.7 billion, creating the world’s fifth-largest bank by market value and highlighting the consolidation drive in Europe’s banking sector.
* China plans to invest $3 billion in private-equity firm Blackstone. The landmark deal signals the country’s determination to earn higher returns on reserves and could help restore some equilibrium to its accounts with the U.S
* TPG AND GOLDMAN SACHS are in the final stages of negotiating a purchase of wireless operator Alltel for about $25 billion.
::: IPO’s Worth Watching for This Week :::
1. Clean Energy Fuels (CLNE): The company operates about 170 gas stations in the US and Canada where its 200 customers can tank up their fleet vehicles with compressed natural gas (CNG) or liquefied natural gas (LNG). Clean Energy also helps customers buy and finance natural gas vehicles and obtain government incentives. The company buys CNG from local utilities and produces LNG at its 35-million-gallon-capacity plant in Texas. Clean Energy plans to use IPO proceeds to build a LNG plant in the Western US and to buy fleet vehicles that it will later sell to customers. Founder and billionaire oilman Boone Pickens owns about 73% of the company. Trading set to begin on Friday.
2. RSC Equipment Rentals (RRR): RSC Holdings, which operates as RSC Equipment Rental, is one of North America’s top equipment rental firms. RSC supplies heavy equipment to contractors for road construction and commercial and residential buildings. It also serves industrial customers in the petrochemical, pulp and paper, and food and beverage markets. Along with its rental activities, the company sells used equipment and offers related tools, supplies, and support services. Trading set to begin on Wednesday.
3. Greenlight Capital (GLRE): Greenlight Capital Re (Greenlight Re) gives the go-ahead to insurance companies looking to offset their losses. Through operating subsidiary Greenlight Reinsurance, the company sells property/casualty reinsurance, specializing in writing customized contracts in underserved markets, including casualty clash, homeowners insurance in some states (particularly Florida), marine, and property catastrophe. It also provides medical malpractice and workers’ compensation reinsurance. Trading set to begin Thursday.
4. B & G Foods (BGS): manufactures, sells and distributes a diverse portfolio of shelf-stable food products across the United States, Canada and Puerto Rico. The CompanyGÇÖs products include hot cereals, jams, jellies and fruit spreads, canned meats and beans, spices, seasonings, marinades, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles, peppers and other specialty food products. It distributes these products to retailers through a direct-store-delivery sales and distribution system and through a nationwide network of independent brokers and distributors. The CompanyGÇÖs principal brands include Ortega, Cream of Wheat, Las Palmas, Polaner, Regina and All Fruit. Trading set to begin on Wednesday
5. Starlims Technologies (LIMS): leading provider of laboratory information management systems, or LIMS and have over 20 years experience in the LIMS market. They develop, market and sell configurable off-the-shelf LIMS software solutions trade-named STARLIMS®. STARLIMS manages the collection, processing, storage, retrieval and analysis of information generated in laboratories. The software improves the reliability of sampling processes, supports compliance with domestic and international regulations and industry standards, and provides comprehensive reporting, monitoring and analysis capabilities. One of the first LIMS vendors to offer a true web-based, configurable off-the-shelf, LIMS solution, which enables its customers to manage their globally distributed laboratories more efficiently and effectively. Trading set to begin on Thursday.
::: Upcoming Economic Reports (5/21/07 – 5/25/07) :::
Monday: None
Tuesday: None
Wednesday: Crude Inventories
Thursday: Initial Claims, Durable Orders, New Home Sales
Friday: Existing Home Sales
::: Notable Upcoming Earnings Reports I’ll Be Watching This Week :::
Tuesday: GigaMedia (GIGM), American Eagle Outfittes (AEOS), Global Sources (GSOL), The9 Limited (NCTY)
Wednesday: Network Appliance (NTAP), Abercrombie & Fitch (ANF), Ansoft (ANST), Dick’s Sporting Goods (DKS), Zumiez (ZUMZ)
Thursday: CitiTrends (CTRN)