Month: August 2012

Lexmark (NYSE:LXK) announcing jobs cuts and the closing of its inkjet business to transfer focus to other business units. The printer maker said it will no longer make their inkjet printers and will instead sell its more sophisticated laster printers. In response to the closing of its inkjet unit, 1,700 jobs will be cut and a plant in the Philippines will close by the end of 2015. Lexmark will also take a $160 million pre-tax charge related to its restructuring and plans to buy back $100 million in its own shares with a potential of $250 million of buy backs in the pipeline.Investors are liking Lexmark’s plan if today’s numbers are any indication. Currently, the company’s stock is up almost 16% to $22.02.

While BP has fixed the problem with its gasoline in the Chicagoland, Indiana, and Wisconsin regions, the drama isn’t over. The company has already received 6,500 claims from drivers who had to have car repairs due the effects of the bad gas.According to the Chicago Tribune, the mechanical issues were primarily to do with hydrocarbon molecules that did not burn well, causing spark plugs and fuel injectors to become dirty and ineffective. Repairs for these sorts for problems range from $300 to $1200. BP recalled some 2.1 million gallons of gasoline last week, after motorist reported problems with the fuel. BP eventually tracked the issues to its Whiting, Indiana facility, and subsequently corrected them.

Gilead (GILD) had its estimates and price target increased by Jefferies (JEF) after the approval of the stribild quad pill, as well as higher pricing announced for the future. A $55 price target was set with a hold rating.

Tanq Capital Corporation, a capital pool company, announced that it has completed its initial public offering by issuing 4,000,000 common shares at a price of $0.10 per common share, for gross proceeds to the corporation of $400,000. The common shares of the Corporation are expected to commence trading on the TSX Venture Exchange shortly under the trading symbol of “TQ”, subject to final listing approval of the TSX Venture Exchange.

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.

The Daily Ticker’s Aaron Task interviews Yale economist Robert Shiller

In trading on Tuesday, computer peripherals shares were relative leaders, up on the day by about 2.1%. Leading the group were shares of Lexmark International (LXK), up about 17.4% and shares of Nam Tai Electronics (NTE) up about 2.2% on the day.

Bank of Montreal (BMO) announced that quarterly profit increased by 37 percent, beating expectations. The company earned $970 million Canadian, or $1.42 cents per share Canadian, versus $708 million Canadian, $1.09 Canadian per share in the same period last year.

Rubber and fuel company TPC Group Inc. has come to a deal to be acquired by two separate investment firms, taking it private. For the two firms, First Reserve Corp. and SK Capital Partners, the deal is worth close to $627 million. The agreement sees the two investment firms paying $40 a share to stockholders, a 1% premium over Friday’s close price. The deal has not been approved yet, with only 22% of shareholders giving it the OK as of right now. According to Bloomberg, TPC plans a special meeting to seek the approval of its remaining shareholders.

Computer giant IBM has announced it will buy software company Kenexa. The deal will cost IBM $1.3 billion in cash, paying shareholders a 42% premium on Friday’s closing, making it $46 a share. Kenexa creates recruiting software that works through social networks and helps get companies in touch with talent. It also works to help employees collaborate on projects through similar tools. According to the New York TImes, this move is IBM’s attempt to make a bigger impact in the social networking sphere, with other tech giants like Microsoft making similar social media acquisitions.