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Microsoft Takeover Rumors Send EA Shares Up

Mark Ellis — Wed, 23 Sep 2009 20:46:11 +0000

Videogame maker Electronic Arts has experienced a surge in the value of its stock following speculation that computer giant Microsoft is considering a takeover of the company. However, both companies have declined to make any comments on such an arrangement and analysts remain largely skeptical about how the acquisition would be practical.

To some analysts, Microsoft acquiring Electronic Arts makes no sense at all because of the fact that Microsoft is developing newer forms of videogame technology, making an acquisition of a traditional videogame company pointless. This potential roadblock has not stood in the way of trading, with EA’s shares climbing 8.9 percent to $20.17 over the last several days.

EA has also been helped by the general consensus that the videogame industry will be quicker to recover compared to other industries, bolstering investor confidence in EA shares. Most of EA’s gains, though, seem to be motivated purely by the possibility of a Microsoft takeover judging by the types of contracts that have been pursued by investors.

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Post from: EveryJoe

Microsoft Takeover Rumors Send EA Shares Up

FedEx Shares Reach 11-Month High

Mark Ellis — Sat, 12 Sep 2009 02:00:09 +0000

After releasing a report that its first-quarter profits have topped its forecasted quarterly earnings, FedEx Corp, the country’s second-largest package shipping company, has watched its shares surge in its biggest daily gain in the last several months. According to the company’s preliminary results, FedEx will eventually post earnings of 58 cents per share.

Originally, the company had predicted earnings of anywhere from 30 to 45 cents per share while the average analyst expectation for FedEx’s profits settled at 45 cents per share. Its strong performance may indicate that the shipping industry has begun to recover, especially in the profitable service of international shipping.

FedEx stock rose $4.66 to $77.32 per share, marking an increase of 6.4 percent. While FedEx’s profits signal recovery for the company in the present, FedEx still has plenty of recovering to do considering that its first-quarter profit this year marks a 53 percent decline from the same time last year. The company is predicting a similarly large drop in profits for the second quarter as well.

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Post from: EveryJoe

FedEx Shares Reach 11-Month High

Symantec Profits, Shares Fall Sharply

Mark Ellis — Wed, 29 Jul 2009 22:06:09 +0000

Computer security software maker Symantec Corp. has posted a disappointing 58 percent drop in profits from a year ago in its fiscal first-quarter report, blaming the situation on the softening of demand on the part of corporate customers. In response to the company’s report, shares slid more than 7 percent to $15.90 in late trading.

Symantec took in $1.43 billion in revenue this quarter, down from $1.65 billion, and posted earnings of 34 cents per share, excluding special items. Analyst expectations had the software company doing somewhat better, predicting $1.49 billion in revenue and 35 cents per share. Symantec CFO James Beer has blamed the economy for a lack of consumer spending, forcing consumers to retool the software they already have instead.

Beer also revealed that he does not expect Symantec’s bad luck to reverse any time soon but he did express his optimism that consumer confidence in purchasing new software may start to strengthen by the end of the calendar year. Symantec has predicted a slight increase in earnings and revenue in the current quarter.

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Post from: EveryJoe

Symantec Profits, Shares Fall Sharply

RadioShack Cuts Costs, Shares Fall

Mark Ellis — Mon, 27 Jul 2009 22:55:54 +0000

Although RadioShack has managed to post results that beat analyst expectations in the second quarter, its shares have fallen 8 percent. Investors are worried that RadioShack’s second quarter results only came after vigorous cost-cutting measures and that the electronics company will not be able to maintain profitability once it runs out of costs to cut.

Analysts have also wondered whether or not RadioShack actually went too far in its cost-cutting measures, hurting the company’s chances of gaining ground as other competitors continue to bow out. RadioShack ended up cutting 11 percent of its costs mainly through limiting the amount of money that the company spent on advertising.

For RadioShack to get back on its feet, analysts have recommended that the company rearrange its expenses in such a way to let it spend more money on advertising. RadioShack has already closed many unprofitable stores and shed many jobs in order to remain profitable, but the fact remains that RadioShack will eventually run out of costs to cut and be forced to make some changes.

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Post from: EveryJoe

RadioShack Cuts Costs, Shares Fall