Market Wrap: Best Buy's Schulze Gets Serious; Knight Capital Gets Capital; Chesapeake Sells and Profits


FREE Breaking News Alerts from StreetInsider.com!

E-mail Address
August 6, 2012 5:53 PM EDT Send to a Friend
Get Alerts KCG Hot Sheet
Price: $3.66 +1.39%

Overall Analyst Rating:
    NEUTRAL (Up Up)

Revenue Growth %: -18.3%
Trade KCG Now!
Market wrap-up for August 6th

End of the Day: Dow Jones up 21.3 to 13,117.51; S&P 500 up 3.2 tp 1,394.23; Nasdaq up 22.0 to 2,989.91

The following is a brief summary of events moving markets today:
  • More privacy please!: Best Buy founder Richard Schulze made a bid to take the big box retailer private for $24 to $26 per share.

    Schulze -- the recently departed chairman of the company he founded -- is Best Buy's largest shareholder, controlling 20.1 percent of Best Buy stock.

    Some expressed concern for a potential deal to get done, saying a deal would be too complex to pull off. That didn't dissuade investors, with Best Buy ending the session up over 13 percent.

  • When you gotta pay, you gotta pay: Knight Capital (NYSE: KCG) ended lower again following news that the firm secured $400 million in financing, but at a cost. The firm will sell about $400 million in convertible debt, but with a conversion price of $1.50 per share and coupon of 2 percent.

  • Another Alzheimer's setback: Pfizer Inc. (NYSE: PFE) is over 2 percent lower in late trading Monday after announcing that co-primary clinical endpoints, change in cognitive and functional performance compared to placebo, were not met in the Janssen Alzheimer Immunotherapy R&D LLC (Janssen AI)-led Phase 3 trial of intravenous (IV) bapineuzumab in patients with mild-to-moderate Alzheimer’s disease who do not carry the ApoE4 (apolipoprotein E epsilon 4) genotype (Study 301). In addition, Pfizer and partner Janssen AI decided to discontinue all other bapineuzumab IV studies in patients with mild-to-moderate Alzheimer’s disease.

    News also hit Elan (NYSE: ELN) and Johnson & Johnson (NYSE: JNJ). Both are also lower in late trading.

  • Apple is no longer in need of YouTube's services anymore, thank you: According to a statement made by an Apple (Nasdaq: AAPL) spokesperson to Bloomberg earlier, Apple's license to include Google's (Nasdaq: GOOG) YouTube into iOS ended. The rep continued, "Customers can use YouTube in the Safari browser, and Google is working on a new YouTube app to be on the App Store."

    Users will be able to download the app and still run YouTube on iOS in the future (once the new app is released), but with Apple garnering for more mobile app revs, it appears more than happy to give the venerable video site the boot.

  • Nat gas giant trades assets for profits: Chesapeake Energy Corp. (NYSE: CHK) posted strong second-quarter profit on a GAAP basis, which benefited from asset sales leading to post-tax profit of $584 million. After adjustment, EPS came in at a svelte six cents, from 76 cents in the same period last year.

    Looking ahead, the nat gas giant sees selling $13 billion to $14 billion in assets through 2012, inclusive of $7 billion in asset sales in the current quarter. CEO Aubrey McClendon said the sales will aid in reducing long-term debt by 25 percent in 2012.

  • Brewing up a storm: Other notable Green Mountain (Nasdaq: GMCR) K-Cup subscriber, Caribou Coffee (Nasdaq: CBOU), issued mixed results Monday, but offered a lighter outlook for its fiscal 2012 EPS to a range of 43 cents to 46 cents, lower than the 49 cents consensus. The company cited expectations for lower Green Mountain K-Cup sales, "driven by continued channel shifting, the short-term impact of new price tiers in the category, as well as the loss of a significant account in the club business."
Click here to go to Streetinsider's Full News Feed and never miss a beat!

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here


You May Also Be Interested In


Related Categories

Special Reports

Related Entities

Standard & Poor's, Aubrey McClendon

Add Your Comment