Tag Archives: technology

Medivation Reportedly Yielding To Buyer Interest; Stock Surges

Shares of rising biopharma player Medivation ( MDVN ) jumped to an 11-month high Monday on reports the company now is willing to sell itself. Citing an anonymous source, Reuters reported that Medivation had signed non-disclosure agreements with Pfizer ( PFE ) and Amgen ( AMGN ), both of which were previously rumored to be interested in buying the company, while Sanofi ( SNY ) went public with its uninvited $9.3 billion bid last month. It still isn’t certain that those companies will actually bid, Reuters said. Medivation stock was up modestly in morning trading on the stock market today , but shares surged after the report came out in the early afternoon, eventually closing up 4.3% at 62.59. Medivation had initially resisted being bought by anyone, and in late March it reportedly hired advisers to help it fend off such attempts. The reason was implied by CEO David Hung in his refusal of Sanofi’s offer , when he accused the French pharma major of taking advantage of “market dislocation” that he believed led the market to undervalue Medivation’s stock. Medivation’s value has continued to go up since then, taking the stock to within 5% of its 52-week high last May. With an IBD Composite Rating of 97, putting it among the top 3% of all stocks in key metrics such as sales and earnings growth, it sits at No. 49 on the IBD 50 list of top-performing stocks.

Stratasys Earnings Beat Gives Short Lift To 3D Printer Market

Stratasys ( SSYS ) posted a first-quarter earnings beat before the market open Monday, sending its stock — and that of rival 3D Systems ( DDD ) — up in early trading, though both stocks reversed by midday even though Stratasys’ sales guidance for the year also edged above views. Stratasys reported revenue of $167.9 million, beating the consensus estimate of $164.8 million by analysts polled by Thomson Reuters. That’s down 3% year over year but marks an improvement from the 20% year-over-year drop in the previous quarter. Earnings per share minus items of a penny fell from a 4-cent profit in Q1 2015 but still beat Wall Street expectations for a 4-cent loss. Stratasys beat on earnings during a difficult period for 3D printer companies. Competitor 3D Systems reported Q1 earnings Thursday that showed a third straight quarter of year-over-year declines in sales and missed Wall Street expectations. Stratasys stock jumped as much as 12% early on the stock market today , but it ended the day down 1.3%, at 20.79. 3D Systems stock rose as much as 2% at the open, but it ended the day down 3.7%, at 12.68. Another 3D printer maker,  Voxeljet ( VJET ), fell 1.9% on Monday. Stratasys said it sold 5,125 3D printing and additive manufacturing systems during the quarter. “Although the overall market environment remains challenging, we made significant progress in improving our operating efficiency during the first quarter,” company CEO David Reis said in the earnings release. “We believe the recent refinements to our operating structure will make us more productive and better position us for future growth.” Stratasys guided 2016 revenue at $700 million to $730 million, with the midpoint slightly ahead of the analyst consensus estimate of $713 million. It projects EPS minus items of 17 cents to 43 cents, with the midpoint meeting views of 30 cents. For 2015, Stratasys posted EPS ex items of 19 cents on sales of $696 million. Piper Jaffray maintained an overweight rating on Stratasys stock, with a price target of 32. “Following the upbeat results, we remain confident in Stratasys’ future and bullish on its long term opportunity,” Piper analyst Troy Jensen wrote in a research note. “Although we believe it will take 1-2 additional quarters to see system sales improve, we believe interest continues to grow and are confident printer sales will show significant improvement in the second half.” Cowen analyst Robert Stone maintained a buy rating and price target of 23 on Stratasys stock, but he said overall visibility was still limited.

Next Yahoo Bidding Round Due ‘Around June’; Verizon, Others In Mix

Yahoo ( YHOO ) CEO Marissa Mayer is center stage as the Web portal moves toward a second bidding round, with Verizon Communications ( VZ ) and others in the mix, says a report from online tech news site Recode. The second round of bidding is expected “around June,” says the Recode report. Mayer remains in charge of a likely Yahoo sale after the Internet firm added four new independent directors to its board under pressure by activist investor Starboard Value. While Verizon, which acquired AOL last year for $4.4 billion, has been viewed as the front-runner, private equity firms TPG and a combination of Bain Capital and Vista Equity Partners will also be involved in the next round, says Recode. Earlier reports said Microsoft ( MSFT ) could provide some funding to a private equity firm to ensure that its relationships with Yahoo stays friendly. Microsoft tried to buy Yahoo in 2008. AOL Chief Executive Tim Armstrong reportedly is in charge of Verizon’s attempt to buy Yahoo. Mayer’s relationship with Armstrong , when they both worked at Alphabet’s Google, has been a topic of Internet media speculation. Mayer stands to get a $55 million payout if she’s forced out as CEO after Yahoo is sold, say reports. Yahoo stock was flat in afternoon trading in the stock market today , near 37. Yahoo’s market cap is near $35 billion, but the great majority of its value is its 15% stake in China e-com giant Alibaba ( BABA ), as well as its stake in Yahoo Japan. Analysts in general expect bids in the $5 billion to $8 billion range for Yahoo’s core business.