After Hours
- Tibco (TIBX) was down 1.5% after hours after announcing a $500M offering for convertible notes. They want to use $150M to repurchase shares, $150M to pay down Credit facility borrowings, and the remaining $200M as a slush fund, er “general corporate purposes.” You know maybe take the executives on a junket to Colombia. I hear the US Secret Service knows a few places there to put on the bucket list.
- If you want to send your stock price down, just announce a secondary offering like Starwood Property Trust did today. Down -3.8% ah. They’re going to use the money for something like purchasing corporate loans and other assets. Sounds like a reasonable use of cash, it just dilutes the assets of existing shareholders.
- Valero up 1% after hours as EPS coming in around 25-35 cents, beating 20-cent estiments.
Companies in the News
- RIMM up over 4% as the company reports it is in discussions to hire investment bankers to examine strategic options. Oh yeah, that'll help. I mean what the heck does Blackberry do at this point? Just make handsets and install Android?
- Mattel slid 9% on declining quarterly sales, due to price increases hurt sales of Barbies and Hot Wheels. I loved Hot Wheels as a kid - and always got in trouble for leaving orange tracks and cars all over the living room floor.
- Google slid 3% ahead of a high stakes legal battle with Oracle over smart phone technology. Really? Or just selling high beta stocks?
- Proctor and Gamble up 1.5%.
- Walmart up 1.4%.
- JNJ reports Tuesday morning – one to watch, as it’s in everyone’s dividend portfolios.
News Flash
- Rasmussen polling data shows Romney leading Obama by 5 points. CNN polling data shows Obama leading Romney by 9 points. Celebrate accordingly.