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Whitney Tilson Says More Confident of Herbalife Short Position Following Ackman Presentation

Courtesy of Benzinga.

Whitney Tilson said in an email Tuesday, that he is more confident in his short position in Herbalife (NYSE: HLF), following Bill Ackman’s presentation. Tilson said he now believes his position has a 76% chance of succeeding vs 63% prior. That’s based on his belief that there is a 95% chance most of the company’s operations are a pyramid scheme, and there is now an 80% chance regulators will intervene.

Herbalife shares rose steadily throughout Ackman’s presentation Tuesday, and end the day up 25% at $77.67

Posted-In: News Movers & Shakers Insider Trades General





Benzinga’s M&A Chatter for Thursday July 10, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday July 10, 2014:

ZF Friedrichshafen Confirms in Talks to Buy TRW Automotive

The Offer:
Shares of TRW Automotive (NYSE: TRW) soared Thursday, on a report from Bloomberg that the company could be acquired for as much as $12 billion by Germany’s ZF Friedrichshafen AG.

TRW later confirmed it had been approached by a potential buyer, followed by Friedrichshafen confirming it was in talks to acquire TRW. Shares of TRW were first halted on a circuit-breaker following the Bloomberg report, eventually hitting a high of $101.98, and then prior to the TRW announcement.

TRW Automotive shares closed off the highs Thursday at $98.91, a gain of more than 8%.

Report PE Firms Have Renewed Interest in Symantec

The Rumor:
Shares of Symantec (NYSE: GME) spiked higher Thursday, on a report from Deal Reporter that the company was in takeover talks with private equity firms, including CVC, Carlyle and Bain. Symantec shareholder Valueact reported a new stake of 7.59 million shares on May 14 and has been seeking changes in the company.

Symantec shares closed Thursday at $22.83, a gain of $0.20.

Crumbs Shares Skyrocket 1200% on Potential Investment

The Investment:
Shares of failed cupcake bakery chain Crumbs (OTC: CRMB) rose 1200% Thursday, hitting a high of $0.55, after closing at just $0.03 on Wednesday, on a report from CNBC that the company was close to securing financing from a group including Marcus Lemonis of CNBC’s “The Profit”. Lemonis plans to move other holdings, including Sweet Pete’s into Crumbs. One of he issues causing problems for Crumbs, was its narrow assortment of product, according to CEO Ed Slezak.

Crumbs announced the closing of its stores on July 7, following its shares being delisted from the Nasdaq on July 1.

Crumbs closed Thursday at $0.40, a gain of $0.37.

Posted-In: News Rumors Management Insider Trades M&A Movers





Benzinga’s M&A Chatter for Wednesday July 9, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday July 9, 2014:

Google Rumored to Have Interest in Deal for Time Warner

The Rumor:
Shares of Time Warner (NYSE: TWX) surged higher Tuesday, following a tweet from Fox Business’ Charlie Gasparino, that he has been hearing chatter of a potential bid from Google (NASDAQ: GOOG). Time Warner shares hit a high of $73.07.

Wall Street Journal reporter Doug MacMillan later tweeted that Time Warner’s CEO said his company was not in talks with Google.

Time Warner shares closed off the highs Wednesday at $72.41, a gain of more than 2%.

Hearing Potential Bid for GameStop

The Rumor:
Shares of GameStop (NYSE: GME) spiked higher Wednesday, on renewed unconfirmed market chatter of a potential bid from an unnamed suitor. Chatter had surfaced on June 22 that GameStop had hired an advisor to help it to review strategic alternatives.

A spokesperson for GameStop was unavailable for comment.

GameStop shares closed Wednesday at $41.79, a gain of $0.15.

AbbVie Forced to Retract Comments Regarding Shire Takeover Attempt

The Withdrawn Comments:
AbbVie (NYSE: ABBV) CEO Richard Gonzalez was forced to withdraw comments he made regarding shareholder support for his company’s bid for Shire (NASDAQ: SHPG). The comments were a violation of UK Takeover Panel rules, as the support was not in writing.

AbbVie confirmed today, it had not received commitments of support in writing.

Shire closed Wednesday at $235.08, a gain of almost 1%, while AbbVie lost more than 1% to close at $55.01.

Shareholders Urge Allergan to Make Acquisitions

The CEO Comments:
Allergan (NYSE: AGN) shareholders are encouraging the company to make a large acquisition in order to fight off a $53 billion hostile takeover bid from Valeant Pharmaceuticals (NYSE: VRX) and investor Bill Ackman of Pershing Square, according to a report from Financial Times. Allergan CEO David Pyott, said his company should act quickly in making an acquisition, based on comments from shareholders.

Allergan’s board rejected Valeant’s latest bid of $53 billion in cash and Valeant shares on June 23.

Allergan closed Wednesday at $165.20, a loss of $0.87, while Valeant lost 1% to close at $120.94.

Posted-In: News Hedge Funds Rumors Movers & Shakers Management Insider Trades Movers General





Arena Pharmaceutical Shares Dive On News CEO Sold 40% Of His Shares

Courtesy of Benzinga.

Related ARNA
Benzinga's Top #PreMarket Losers
Markets Marginally Lower Ahead Of Earnings Season

Arena Pharmaceuticals (NASDAQ: ARNA) shares plunged Monday on news that its chief executive Jack Lief sold nearly 40 percent of his holdings in the company.

Lief sold 223,525 shares on July 1 at $5.85 per share. The transaction was an "automatic sell" apparently triggered by a declining share price.

While unusual, the transaction isn't unique among Arena's insider deals. Dominick Behan sold 200,000 shares at $6.30 per share in October, according to filings.

"Lief dumping 40% of his Arena shares all at once when the stock is hitting new lows isn't exactly confidence inspiring," wrote TheStreet columnist Adam Feuerstein.

Feuerstein said the transaction is the death knell of intermittent rumors that Eisai Co. (OTC: ESALY) will acquire Arena.

After opening sharply lower Monday, Arena traded recently at $5.33, down 8.73 percent.

Posted-In: News Insider Trades Movers





American Apparel, Phillips 66 And Others Insiders Have Been Buying

Courtesy of Benzinga.

Related AAP
O'Reilly Automotive Tops Q2 Earnings on Operational Merit
Worst Performing Industries For July 22, 2014

American Apparel, Consolidated Edison and Phillips 66 are among the companies that have seen insider buying recently. Insiders may sell shares for any number of reasons, but conventional wisdom says that insiders really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit from it.

Pullbacks and sell-offs provide a perfect opportunity for investors who have faith in a company to snap up shares.

Accelerate Diagnostics

Recently, one director and one beneficial owner have picked up more than 38,000 Accelerate Diagnostics (NASDAQ: AXDX) shares combined for a total price of almost $1 million. Note that the same beneficial owner also bought $5 million worth of shares back in May.

This Arizona-based medical research company has a market cap of a little over $1 billion and a return on equity that is in the red. Short interest is more than 10 percent of the total float. Shares have pulled back more than 12 percent from a recent 52-week high. Over the past six months, the stock has outperformed the S&P 500.

American Apparel

Ousted CEO Dov Charney recently scooped up more than 27.3 million shares of American Apparel (NYSE: AAP) as part of his attempt to get the company back. That was worth more than $19.5 million. Hedge fund Standard General is helping Charney, and also bought about 1.5 million shares since.

The market cap is about $9.8 billion. The return on equity is more than 100 percent, but the operating margin is in the red. The share price has swung wildly since Charney's ouster, and over the past six months, the stock has underperformed the likes of Abercrombie & Fitch and Urban Outfitters.

See also: American Apparel Imperiled By Lender's Repayment Demand

Consolidated Edison

A number of executives,…
continue reading





Benzinga’s Weekend M&A Chatter

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday June 27 through Sunday June 29, 2014:

Tencent Acquires Approximately 20% Stake in 58.com for $736M

The Deal:
58.com (NYSE: WUBA) and Tencent Holdings (OTC: TCEHY) announced Friday that Tencent has agreed to invest $736 million in exchange for approximately 19.9% equity interest in 58.com. Under the agreement, Tencent is purchasing 36.805M Class A and B ordinary shares at $20 per share, or $40 per ADS. 58.com will use part of the proceeds from this transaction to buyback 27,603 million shares from existing pre-IPO shareholders.

58.com closed Friday at $54.90, a gain of 5%.

Rackspace Shares Fall on Reported Lack of Takeover Interest

The Rumor:
Shares of Rackspace (NYSE: RAX) fell sharply Friday, on a report from Deal Reporter that there has been a lack of interest from potential buyers for the web hosting company, due to cash flow issues. Rackspace has been the subject of frequent takeover chatter, with IBM (NYSE: IBM) being often mentioned as a potential suitor.

Rackspace closed Friday at $33.63, a loss of more than 7%.

Pershing Square Settles Poison Pill Litigation

The Settlement:
Bill Ackman’s Pershing Square Capital Management announced Friday, it has reached a settlement with Allergan (NYSE: AGN), resolving the previously announced poison pill litigation before the Delaware Court of Chancery.

The settlement provides that Pershing Square’s solicitation and receipt of revocable proxies to call a special meeting of shareholders of Allergan will not trigger the poison pill, and paves the way for Pershing Square to begin actively soliciting proxies to call the special meeting.

Allergan has rejected Valent Pharmaceutical’s takeover bids, the current offer being $53 billion in cash and Valeant shares. The rejections have prompted Ackman and Valeant to present the offer directly to Allergan shareholders.

Allergan closed Friday at $173.95, a gain of 2%, while Valeant closed at $128.85, a gain of almost 2%.

Posted-In: News Hedge Funds Rumors Movers & Shakers Management Insider Trades M&A General





Benzinga’s M&A Chatter for Thursday July 24, 2014

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday July 24, 2014:

Report Zillow May Bid $2B for Trulia

The Rumor:
Shares of real estate website companies Trulia (NYSE: TRLA) and Zillow (NYSE: Z) surged to new all-time highs Thursday, on a report from Bloomberg, that Zillow could offer $2 billion for its rival. A deal could be announced as early as next week, according to sources.

Shares of Realtor.com operator, Move, Inc. (NASDAQ: MOVE) and Century 21 owner Realogy (NYSE: RLGY) also moved higher on the report. Benzinga reported on June 17 that Trulia was in talks to acquire Move.

Spokespersons for Zillow and Trulia declined comment.

Trulia shares closed Thursday at $53.74, a gain of more than 32%, while Zillow gained 15% to close at $145.76.

Breitburn Energy Partners to Acquire QR Energy for Approximately $3B in Unit-for-Unit Transaction

The Deal:
Breitburn Energy Partners (NASDAQ: BBEP) and QR Energy (NYSE: QRE) announced Thursday, a merger agreement, under which Breitburn will acquire QR Energy in a unit-for-unit exchange, with transaction value of approximately $3.0 billion, including QR Energy’s existing net debt and outstanding Class C Convertible Preferred Units. Holders of QR Energy’s Common and Class B units will receive approximately 72 million Breitburn common units, or 0.9856 of a BBEP unit per unit of QRE held.

The deal is expected to close in late 2014 or early 2015.

QR Energy shares closed Thursday at $20.59, a gain of 9%.

Report SodaStream Considering Going Private Transaction at $40/Share

The Rumor:
Shares of SodaStream (NASDAQ: SODA) spiked higher Thursday, on a report from Bloomberg, that it is in talks with an investment firm about taking the company private, according to sources. A price of $40 per share is reportedly being discussed, which would value the deal at $828 million.

A spokesperson for SodaStream declined comment on the report.

SodaStream shares closed Thursday at $31.63, a gain of 9.5%.

Posted-In: News Rumors M&A Movers





Analysts Weigh In On SodaStream Rumor

Courtesy of Benzinga.

Related SODA
Benzinga's M&A Chatter for Thursday July 24, 2014
Markets Steady Despite Mixed Economic Data
Coca-Cola to Become Keurig's Biggest Investor (Fox Business)

Shares of SodaStream (NASDAQ: SODA) spiked up 18 percent following a report by Bloomberg that cited anonymous sources as saying the company is looking for investors to go private at $40 per share.

SodaStream declined to comment to Benzinga on the matter.

Following the report, Stifel analyst Jim Duffy said it is "highly improbable to impossible" that a deal will happen. In fact, he said the probability is of a takeout is 25 percent or less.

The analysts at Deutsche Bank mirrored Duffy's opinion stating that although the deal is not impossible, it would be difficult to pull off.

Looking at the chart, SodaStream shares have been trending down since hitting a high of $45.48 in late April and the shorts as a percentage of the float have been over 30 percent. This could mean the initial pop up was due in part to a short squeeze.

The shares came back after hitting a high of $35.09, to end the day up 9.45 percent at $31.63.

Posted-In: Deutsche Bank Jim Duffy StifelAnalyst Color News Rumors





Trulia Competitors Move Higher Due To Zillow Speculation

Courtesy of Benzinga.

Shares of Trulia (NYSE: TRLA) spiked higher following the Bloomberg release that Zillow (NASDAQ: Z) could be looking to buy the online real estate search company.

Trulia's competitors surged following the news. Due to Zillow being one of Trulia's competitors within its consumer segment, it appears the street is drawing its focus on Trulia's other competitors within the space.

Public Competitors:

Move (NASDAQ: MOVE), with Realtor.com as subsidiary, closed up 0.83 percent. It was up more than four percent earlier in the afternoon.

Yahoo (NASDAQ: YHOO) closed up 4.16 percent. Trulia has recognized Yahoo Real Estate as one of its principal competitors in its consumers category.

Posted-In: News Rumors M&A Movers





Trulia Up 30%; Zillow Rumored Near Making $2 Billion Bid

Courtesy of Benzinga.

Related Z
Benzinga's M&A Chatter for Thursday July 24, 2014
Markets Steady Despite Mixed Economic Data

Trulia (NYSE: TRLA) shares jumped more than 30 percent Thursday on a rumor that it may be acquired by Zillow (NASDAQ: Z).

Zillow could pay $2 billion for Trulia's 36.92 shares outstanding, and an agreement may be unveiled next week, according to Bloomberg news service, which cited unnamed sources.

Zillow's market capitalization is about $5 billion,compared with Trulia's $1.5 billion.

Together the companies account for a reported 89 percent of all traffic to real estate sites.

Caledonia Investments is the largest single shareholder of both Zillow and Trulia. It has 8.5 million of Trulia's 36.92 million shares outstanding and 6.18 million of Zillow's 33.56 million shares outstanding.

Trulia traded recently at $54.06, up 32 percent; Zillow was up more than 15 percent at $146.56.

Posted-In: News Rumors M&A Hot Movers





 

Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743"

Thank you for you time!

 
 

Phil's Favorites

Obama Shenanigans on 'Factoryless' Exports, Taxes, Employment, Jobs

Courtesy of Mish.

Corporate Deserters

President Obama was beating the drums on Thursday in Los Angeles regarding corporate tax deserters, companies that move headquarters or tax shields to another country in order to escape high US tax rates.

The LA Times provides the details in President Obama Hits 'Corporate Deserters' in Populist L.A. Speech.
Tearing into companies he dubbed “corporate deserters,” President Obama on Thursday launched an election-year push to make it harder for U.S. companies to avoid paying taxes.

Under a bright sun at a trade and technical college in Los Angeles, Obama issued a damning assessment of a “small but growing” group of companies taking a...



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Zero Hedge

Where China Goes To Outsource Its Own Soaring Labor Costs

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

30 years ago, the great outsourcing wave took millions of US low-skilled jobs and planted them right in the heart of China, which was about to undergo the fastest industrialization-commercialization-financialization experiment in history. $26 trillion in bank assets later, the world's biggest housing bubble, and a teetering financial system that every day depends on Beijing making the correct central-planning decision (of kicking the can one more day, of course) or else the biggest financial collapse in history will take place, all lubricated by years of inflation in everything and most certainly wages, and suddenly outsourcing jobs in China is not all that attractive.  In fact, it has gotten so b...



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Insider Scoop

DigiTimes Reports Advanced Semiconductor Engineering Affiliate Receives Apple iWatch Orders

Courtesy of Benzinga.

An affiliated company of Advanced Semiconductor Engineering (NYSE: ASX), Universal Scientific Industrial, has reportedly received SiP module orders from Apple (NASDAQ: AAPL) for the iWatch according to industry sources, as reported by DigiTimes. Each SiP module costs approximately $60, which is 20% of the iWatch's rumored $300 price tag.

View full article http://www.digitimes.com/news/a20140723PD209.html

Posted-In: Digitimes...



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Chart School

Bulls Take Notice - Caution Suggested as Credit Markets and Equity Markets Diverge

Courtesy of Doug Short.

Summary
  • Divergence with small cap stocks and junk bonds persists.
  • Credit spreads widening suggests building short-term financial stress.
  • Markets oversold and how risk areas react will be telling.

One of the most widely followed market theories is Dow Theory, which has been around for more than 100 years. The essence of Dow Theory is to focus on confirmations or non-confirmations between the Dow Jones Transportation Average and the Dow Jones Industrial Average for assessing market trends and reversals. If one of the indexes breaks out to a new high while the other does not, we have a non-confirmation and the potential for a market reversal.

Similar to Dow Theory I like to look for confirmation between the stock market and the credit markets. When one market does not confirm the other, caution is ...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Option Review

Starbucks Options Volume Rises Ahead Of Earnings After The Bell

Volume in Starbucks options is running approximately three times the average daily level for the stock as of 1:15 p.m. ET ahead of the company’s third-quarter earnings report after the close. Shares in the name are up roughly 1.0% just before midday to stand at $79.95. Traders of SBUX options today are more active in calls than puts, with the call/put ratio hovering near 2.0 as of the time of this writing. Much of the volume is in 25Jul’14 expiry options contracts, most notably in the $80 and $83 strike calls which have traded roughly 3,350 and 2,550 times respectively and in excess of existing open interest levels in both strikes. A portion of the volume in the $80 and $83 calls appears to be part of a spread trade.

...

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Sabrient

Sector Detector: Bulls remain unfazed by borderline Black Swans

Courtesy of Sabrient Systems and Gradient Analytics

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.

Nevertheless, when it became clear that the airline...



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OpTrader

Swing trading portfolio - week of July 21st, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Please use your PSW user name and password to log in. (You may take a free trial here.)

#452331232 / gettyimages.com ...

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Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



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Digital Currencies

Bitcoin Vs Gold - The Infographic

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While Marc Faber has said "I will never sell my gold," he also noted "I like the idea of Bitcoin," and the battle between the 'alternative currencies' continues. The following infographic provides a succinct illustration of the similarities and differences between gold and bitcoin.

Please include attribution to www.jmbullion.com with this graphic.

...

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Pharmboy

Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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