Top 10 News for 05/13 - 05/17: Tesla Can't be Stopped; Tepper Still Bullish; Sony Gets in Play

May 17, 2013 4:01 PM EDT
1. Tesla Motors (Nasdaq: TSLA) had another crazy week following last week's earnings report. The company filed to raise funds via an equity and convertible debt offering. More, CEO Elon Musk committed an investment of $100 million of his personal funds, truly a sign of confidence by the lauded exec. For more on Tesla, click here.

2. On CNBC this week, hedge fund giant David Tepper of Appaloosa said he remains bullish although he does expect the Fed to taper down. Tepper said short sellers better have a shovel to dig themselves out. "There better be a true [Fed] taper or else you might be back into the last half of 1999," Tepper said. "So like guys that are short, they better have a shovel to get themselves out of the grave." He continued, "If the Fed doesn't taper back, we're going to get into this hyper-drive market. "It's a backwards argument. To keep the markets going up at a steady pace the Fed has to taper back."

3. Tech giant Cisco (Nasdaq: CSCO) saw some upside following quarterly results released on Wednesday night. Despite Q4 guidance coming in-line with views, many believe macro pressures prepped the Street for a worse outlook.

4. Sony Corp. (NYSE: SNE) popped earlier in the week after hedge fund manager Dan Loeb of Third Point LLC put the company in play. Loeb, a well-known activist investors, has accumulated a 6 percent stake and wants Sony to spin off its entertainment arm. In a letter personally delivered to Sony CEO Kazuo Hirai, Loeb said his hedge fund would put up another 200 billion yen (around $2 billion) to support an initial public offering of Sony entertainment.

5. Two notable IPOs on the week:
  • Marketo (Nasdaq: MKTO) - priced 6.06 million shares at $13, but opened at $20. Click here for more color; and

  • Tableau Software (NYSE: DATA) - priced 8.2 million shares at $31, but opened at $47 on Friday. For more on the company and offering, click here.

6. Data from the U.S. Department of Commerce this week showed an adjusted gain of 0.1 percent for the month to $419.0 billion. The number was up 3.7 percent over the same period last year. The Street was looking for consolidation of about 0.4 percent. Consumers spent 4.7 percent less at gas stations, the largest drop in the metric since December 2008. Data could be reflecting lower gas prices in the month.

7. NetApp (Nasdaq: NTAP) spiked in the middle of the week following reports that it might be a target of an activist hedge fund. Headlines had Elliott Management taking a stake of less than 5 percent, but planning to increase its position. The firm was said to be pressing for change in NetApp's board and studying options to boost shareholder value.

8. Dell (Nasdaq: DELL) was back in radars this week after its nominating committee sent a letter to Carl Icahn and Southeastern Asset Management requesting more information on its recapitalization plans. Icahn sent a list of his Board nominees to Dell. Also, Dell reported Q1 EPS of 21 cents and revs of $14.07 billion, with EPS missing and revenue beating estimates.

9. Many hedge funds filed 13Fs for the quarter ended March 31, 2013. Some sold out of Apple (Nasdaq: AAPL) while others simply cut stakes. Buffett took a notable position in Chicago Bridge & Iron (NYSE: CBI), which helped move the stock higher. For more hedge fund related news, click here.

10. Industrial machinery giant Deere & Co. (NYSE: DE) reported Q2 results on Wednesday. EPS came in at $2.76 on revs of $10.91 billion, versus consensus views calling for EPS of $2.72 and revs of $9.81 billion. Management also noted that Deere's near-term outlook was tampered due to macro pressures and some unfavorable weather patterns.

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Daniel Loeb, Carl Icahn, Southeastern Asset Management, Third Point LLC, Appaloosa, Hedge Funds, Tesla, Earnings

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