Wall Street Journal
Shares rose 1.6% to $4.53 in after-hours trading. Luxury home-building company Toll Brothers reported sharply improved results for its fiscal fourth quarter ...
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Terra Industries Inc. (NYSE: TRA) is seeing a lot of options action today with 17,164 calls trading as of 2:00 PM EST, and 45% offer side buying with shares at $35.65. Interestingly enough, a trader bought 5,000 November $40 calls at 35 cents on a 25-40 spread, a bullish bias. Another large buyer of December $39 calls came in around 1:20pm for 5,000 calls at the offer. Implied volatility is gaining 7% today to 60% as holders are urged to reject CF Industries’ (NYSE: CF) latest takeover offer. The current offer would give a value around $40 for Terra shares. This is occurring as CF is busy rejecting Agrium’s (NYSE: AGU) raised takeover offer. It appears the with this trading today we may get some clarity soon on the M&A saga, a possibly a bid Terra can not resist.
-Joe Kunkle, OptionsHawk.com
Entertainment Properties Trust (NYSE: EPR) is getting hit after the company announced last night that plans to file a supplement to its shelf registration statement with the SEC for a public offering of 4,500,000 of common stock. J.P. Morgan and RBC Capital Markets Corporation are the joint book running managers, with Citigroup, Barclays, KeyBanc Capital Markets, and FBR Capital Markets as co-managers. We have not yet seen a pricing but this is supposed to be priced this morning and we have seen only 30,000 shares trade this morning but at a drop of 5.4% at $31.83. The 52-week range is $11.88 to $36.10.
JON OGG
JA Solar Holdings Co. Ltd. (NASDAQ: JASO) managed to turn a profit as earnings were $17.3 million, or $0.10 EPS, compared to a loss a year ago of some $18 million or -$0.36 EPS. Revenue was $193.3 million, but Thomson Reuters estimates were $0.03 EPS on $136.23 million in revenues. This quarter was also JA Solar’s highest ever quarterly shipments. Shares in JA Solar rose nearly 7 percent in pre-market trade to $4.40 per share. Shares are up 7.5% at $4.43 on over 800,000 shares at 8:54 AM EST. Average volume is 5.6 million shares and the 52-week trading range is $1.55 to $6.29.
JON OGG
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