Los Angeles Times
Los Angeles Times
... $5.5 million for worldwide rights to the picture. In after-hours trading following the release of its earnings, Lions Gate stock rose nearly 6% to $5.71.
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Electronic Arts Inc. (NASDAQ: ERTS) is rising after the close despite some mixed reports. The video game giant posted non-GAAP earnings at $0.06 EPS on $1.15 billion in revenues versus Thomson Reuters consensus estimates of $0.07 EPS and $1.13 billion in revenues. More importantly, EA reported more cost reductions and will close several facilities and make job cuts of 1,500 by March 31, 2010. While it will have $130 to $150 million in restructuring costs, this will give it $100 million in expected annual savings. The new guidance for 2010 is $0.70 to $1.00 EPS and $4.20 to $4.40 billion in revenues. Thomson Reuters has estimates at $0.89 EPS on $4.27 billion in revenues. If were not for the cost cuts, this would be ugly as sin.
EA shares are up 2% at $19.95 after closing up 2.8% at $19.53 in regular trading. While there were over 12 million shares in the regular trading session, we have seen 950,000 shares trade in the after-hours session since the $PM closing bell.
JON C. OGG
MBIA Inc. (NYSE: MBI) is trading 9,900 calls and 1,804 puts ahead of earnings tonight with ISE Sentiment indicating that the offer side buying in the November $5 calls is mostly new opening buyers, as 7,000 trade against OI of 9,700. Implied volatility is also jumping 8% to 132 % on the day. Shares of the insurance and investment company trade 2X forward earnings estimates, 1X cash, and has a 35.5% short float, so we could see a major squeeze on positive developments. MBIA could report a similar blowout quarter to Ambac on credit derivative gains. Shares of Ambac gained 46% on earnings, and MBIA is likely having more success writing new business and also will see similar accounting gains. (2:35 PM EST)
Joe Kunkle, OptionsHawk.com
Teton Energy Corporation (NASDAQ: TEC) is getting killed today on trading volume that goes above and beyond ‘exponential trading volume’ when you look at it. Yet it is pretty sad when a whopping $600,000.00 worth of volume at the current price constitutes a volume spike. Teton’s self description is that the firm engages in the development, production, and marketing of natural gas and oil properties, but apparently it was not good at any of it. Teton filed for Chapter 11 bankruptcy protection and will effectively sell itself. Shares are down 78% at $0.0666 right now. We have also seen over 9 million shares trade hands as of 11:00 AM EST.
While the company discusses that Rise Energy Partners II, LLC is acquiring the company, here is all you need to know as a common holder: Teton would like to inform investors that it believes it is likely that there will be no value for its common stockholders in the bankruptcy process. If you have ever been on a jet that had an engine blow out, this is one of those situations for Teton. The difference is that this is a crash and burn.
Jon C. Ogg
November 9, 2009
Abercrombie & Fitch Co. (NYSE: ANF) is soaring on an analyst upgrade from Credit Suisse to outperform from neutral on hopes that the teen and young adult retailer will beat its earnings estimates this week. A&F stock has now doubled from its lows of late-2008. At 8:40 AM EST we have shares up 5% at $36.85 on right at 80,000 shares. Average volume is over 4 million shares, but this is still well under half of its share price when it was a very popular growth story.
Jon C. Ogg
November 9, 2009