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Gapper AAPL
Nice win you two!
Tanker VLO Gapper PENN
APPL- buy or short/calls or puts before earnings on Tuesday after the close? Discuss.
ANGI- interesting read. link back for chart.
http://seekingalpha.com/article/1537882-angie-s-list-s-working-capital-and-shareholder-equity-is-now-zero?source=yahoo
SLW- this can't be good for their future earnings projections. This mine was supposed to send them to the "next level". They release earnings on 8/14 and I have a feeling it will be another miss.
http://www.fool.ca/2013/07/16/chilean-court-rules-on-barricks-pascua-lama/?source=c75yhocs0040001
Gapper SIX Tanker HAS both earnings plays for Monday morning.
AMD (my gapper)- looks like they had a solid report, yet the stock is down AH probably due to the run they have had...I guess.
http://www.reuters.com/article/2013/07/18/amd-earnings-idUSL1N0FO1ZB20130718?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43
SYK- I wonder what my puts will look like tomorrow morning. Doesn't seem to be much selling AH...figures.
Stryker misses by $0.03, reports revs in-line; guides FY13 EPS below consensus, revs above consensus
4:16 PM ET 7/18/13 | Briefing.com
Reports Q2 (Jun) earnings of $1.00 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus Estimate of $1.03; revenues rose 5.0% year/year to $2.21 bln vs the $2.19 bln consensus. For FY13, co sees EPS of $4.20-4.26, excluding non-recurring items, vs. $4.29 Capital IQ Consensus Estimate; sees FY13 rev growth of 4.0-5.5%, which computes to approximately $9.00-9.13 bln vs. $8.96 bln Capital IQ Consensus Estimate.
Hunh, I wonder why. I'm using the same formula I have always used...
Can anyone see the chart I posted for SIX? For some reason, I'm unable to view it.
Tanker SYK Gapper AMD Earnings AH
Gapper AN Tanker GHL earnings plays
JOEZ- I tried to listen but I kept getting interrupted by my wife and kids. I don't have much time to outline much right now, sorry. But, here is a link to the transcript. Basically, they are keeping both businesses separate, this will double the size of JOEZ, they will pay for Hudson with cash and convertible notes, and Hudson CEO to join JOEZ board of directors. I think this is a great move for the company and in due time will pay off for investors. I think today was an overreaction and that in the next 6 to 12 months the cost reductions will become more evident. Sorry I couldn't give more.
http://seekingalpha.com/article/1549822-joe-s-jeans-management-discusses-q2-2013-results-earnings-call-transcript?source=yahoo
Gapper IGTE Tanker IBKR
Thanks! I bought some more. It's a little over done now, imo. I think it trades back up in the next couple of days.
On it now :) It sounds positive for the future of the company and they may be able to break out of this low pps trading level in the future if it works for them.
JOEZ- I bought some shares on hopes the market receives the news well on the M&A front. Also, that they shed some more light on the acquisition.
JOEZ- So far so good but they just announced the purchase of Hudson clothing. The CEO says it will double their business. We'll see how the market reacts tomorrow. IMO, it's a positive move for this company to compete in the specialty retail segment.
JOEZ- they missed top and bottom but are acquiring Hudson clothing which the CEO says will double their business. Looks like JOEZ is trying to become a bigger player in specialty retail. IMO, this is a big deal for JOEZ and may break them out into the $2 range. My tanker pick still looks good for the time being but who knows what tomorrow brings. Sometimes the market looks favorably on these M&A's and sometimes they don't.
"Will Combine Premier, Highly Complementary Brands, Add Significant Scale and Enhance Growth Potential for Both Companies
LOS ANGELES, Jul 15, 2013 (BUSINESS WIRE) --
Joe's Jeans Inc. (JOEZ) ("Joe's Jeans") and Hudson Clothing Holdings, Inc., ("Hudson"), today announced that they have signed a definitive stock purchase agreement under which Joe's Jeans will acquire privately-held Hudson.
The total purchase price for Hudson will be approximately $97.6 million, subject to certain adjustments, and will be payable in cash and convertible notes issued by Joe's Jeans.
Marc Crossman, President and Chief Executive Officer of Joe's Jeans, stated, "We are extremely excited about joining forces with Hudson Jeans. Once the acquisition is complete, we expect to nearly double the size of our business, meaningfully increase our international and e-commerce penetration, and enhance our overall prospects for growth. Paramount to the combination is preserving the DNA of each existing company by retaining its employees and separate facilities. This deal represents a landmark event in the history of our company and we are committed to capitalizing on the many opportunities this transformative transaction will create in marketplace." Crossman continued, "We believe by leveraging our sourcing capabilities to realize cost savings across all three components of making a jean, from fabric, trim to labor, will significantly reduce our input costs while we drive top line sales by building on the strengths of each company's distribution."
Based in Los Angeles, California, and founded by Peter Kim in 2002, Hudson is a leading, global designer and marketer of women's and men's premium branded denim apparel. Kim, who will remain Chief Executive Officer of Hudson, will become a member of the Joe's Jeans Board of Directors. Hudson's products include a core denim line as well as non-denim tops and bottoms. As a global fashion brand, Hudson continuously innovates within its product line, introducing new styles, washes, cuts, fabrics and colors, all designed under the premise of one superior fit. Hudson's products are available at department stores and selective boutique and specialty stores around the country, as well as premier retailers in over 30 countries around the world.
Peter Kim stated, "We are thrilled at the prospect of joining a highly respected team of people that has created an incredible business. To be able to collaborate with Joe's Jeans to create one of the largest premium denim companies in the world is a phenomenal opportunity for us all. We look forward to benefiting from each other's strengths and to entering a new chapter of growth."
Dan Fireman, Managing Partner of Fireman Capital Partners, which acquired a controlling stake in Hudson in 2009, said, "We are proud of our partnership with Hudson and all that we have achieved together, and are pleased that Hudson has found a perfect home with Joe's Jeans to take the company to the next stage in its development."
Mr. Crossman concluded, "Hudson Jeans represents a great fit for our business model. There are many complementary features between our two organizations that should allow us to realize future operating benefits and cost savings. At the same time, each brand has multiple channel expansion opportunities both domestically and overseas that will drive top-line growth and operating expense leverage over the long-term."
Joe's Jeans expects the transaction will close on or about August 31, 2013 subject to the contingencies described herein and subject to the satisfaction of customary closing conditions as set forth in the definitive stock purchase agreement. The stock purchase agreement terminates unless the transaction closes by August 31, 2013 unless extended by the parties. Among other things, the transaction is contingent on obtaining the receipt of commitments for and closing under senior secured and junior debt financing facilities in an amount of not less than $80 million to provide for acquisition financing and future working capital needs of Joe's Jeans. At the closing, Joe's Jeans estimates that the outstanding indebtedness will be approximately $85 million including the convertible notes. In connection with such financing, intercreditor arrangements, including agreements concerning the nature of the subordination of the convertible notes, must be reached among the prospective holders of the convertible notes and the prospective senior lender. Joe's Jeans has non-binding funding term sheets from prospective lenders for the funding, subject to certain customary closing conditions. Based on discussions with possible senior lenders, Joe's Jeans is confident that it will be able to obtain satisfactory senior financing, but there can be no assurance that adequate financing will be obtained or that the terms of the subordination will be agreed upon.
The convertible notes in principal amount of approximately $24.1 million, subject to adjustment for the purchase price, to be issued to Hudson's management stockholders will be structurally and contractually subordinated to Joe's Jeans' existing senior debt, have a term of six years, would accrue cash interest paid quarterly on the outstanding principal amount at an annual rate of 10% per annum, and will be convertible by each of the holders beginning two years after the closing of the acquisition and ending 6 years after the closing, into shares of our common stock or cash, in certain circumstances, at Joe's Jeans' election. The $10 million, subject to adjustment for the purchase price, in principal amount of convertible notes to be issued to Hudson's institutional investor stockholder will be structurally and contractually subordinated to Joe's Jeans' existing senior debt, have a term of six years, would accrue cash interest paid quarterly on the outstanding principal amount at an annual rate of 6.50% per annum, and will be convertible by the holder beginning one year after the closing of the acquisition and ending six years after the closing, into shares of our common stock or cash, in certain circumstances, at Joe's Jeans' election. The convertible notes would be convertible, in whole but not in part, at a conversion price of $1.78, subject to certain adjustments that are typical for convertible notes of this type, into approximately 19.1 million shares of common stock, subject to receipt of Joe's Jeans stockholder approval to increase the number of authorized shares, if necessary, and to comply with NASD rules. Joe's Jeans contemplates seeking shareholder approval promptly after the closing of the transaction. Prior to receipt of such stockholder approval, the conversion rights will be limited to approximately 13.5 million shares. If Joe's Jeans elects to pay cash with respect to a conversion of the convertible notes, the amount of cash to be paid per share shall equal the then outstanding principal amount of the convertible note divided by the average of the closing prices for the stock over the 20 trading day period immediately preceding the notice of conversion. Joe's Jeans will have the right to redeem the convertible notes at any time by paying an amount equal to the principal amount plus interest that would have accrued through the maturity date and upon such redemption the holder would retain the conversion right applicable to the note. Certain insiders of Joe's Jeans holding approximately 23% of the votes have agreed to vote in favor of authorizing Joe's Jeans to issue, at Joe's Jeans' election, the maximum amount of shares of common stock upon conversion of the convertible notes.
Threadstone Advisors LLC served as financial advisor to Joe's Jeans on the transaction and Akin, Gump Strauss Hauer & Feld LLP served as legal advisor to Joe's Jeans. Lazard Middle Market LLC served as financial advisor to Hudson Clothing on the transaction and McDermott Will & Emery LLP served as legal advisor to Hudson.
Tanker JOEZ Gapper CTAS earnings play
vacation, kids are a hand full now, work, and looking for a new job. nothing glamorous :)
I'm ready to get back to some trading. Although, I feel a little out of touch with what's hot and what's not.
Tanker EXK Gapper AMRN just a guess here as I need to warm up. I have been gone for a bit. Have a good weekend everyone!
I was a close 3rd, HAHA! Nice pick Mike!
Gapper LZB Tanker ATU
Thank you!
Tanker FDS Gapper AMRN
Gapper EXK Tanker AFFY
Gapper EXK Tanker TSLA just guesses because I'm rushed today. Have a great day everyone!
LULU- sinking AH after the CEO announced she was stepping down. Nice call Mike for your tanker pick!
http://www.theflyonthewall.com/permalinks/entry.php/LULUid1844622/LULU-lululemon-falls-after-announcing-CEO-Christine-Days-plan-to-step-down
Gapper DMND Tanker NOA on earnings
Dang it! That would have made 4 tiaras for the week, would that have been a record?
Tanker TECD Gapper SLW
Earnings Monday morning and a hunch, respectively.