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Stock Market & Financial Investment News

News Breaks
March 5, 2013
09:16 EDTCAG, CHSCPConAgra says expects JV transaction to become accretive to EPS over time
ConAgra says in an 8K filing that securing third-party financing in an aggregate amount of no less than $600M on terms that are commercially reasonable and that do not, among other things, require credit support to be provided by any Owner, is a condition to close. Immediately upon completion of the Financing, all of the net proceeds thereof will be distributed to the Owners. The distribution will be approximately proportional to the Owners’ ownership interests in Ardent Mills, except that each Owner’s distribution will be adjusted to reflect any deviations in the working capital contributions of such Owner from specified target amounts and ConAgra Foods will receive a distribution that is slightly higher proportionally than its percentage ownership. ConAgra Foods currently plans to allocate its initial cash distribution from the Joint Venture to pay down debt. It is anticipated that the transaction will close late in calendar year 2013. ConAgra Foods plans to finalize the expected financial impacts of the transaction between now and the closing. Due to both the anticipated timing of the closing and expected allocation of proceeds toward debt reduction, the transaction is expected to be modestly dilutive, less than 5c, to fiscal 2014 diluted EPS, excluding items impacting comparability. Even with this impact, ConAgra Foods expects to post a strong growth rate of diluted EPS, excluding items impacting comparability, in bothhalves of fiscal 2014, primarily reflecting the contribution of diluted EPS, excluding items impacting comparability, from the recent Ralcorp Holdings, Inc. acquisition; this transaction does not alter the company’s expectations for previously announced cost synergies related to the Ralcorp acquisition. ConAgra Foods also expects the Joint Venture transaction to become accretive to its diluted EPS over time, as expected cost synergies from the transaction are realized.
News For CAG;CHSCP From The Last 14 Days
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June 29, 2015
06:36 EDTCAGConAgra CEO Connolly to discuss strategy at earnings conference call, WSJ says
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June 26, 2015
07:25 EDTCAGConAgra July volatility elevated into Q4 and outlook
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June 22, 2015
10:00 EDTCAGOn The Fly: Analyst Upgrade Summary
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07:38 EDTCAGConAgra upgraded to Overweight from Neutral at JPMorgan
JPMorgan upgraded ConAgra to Overweight citing an attractive risk/reward profile following the activist stake by JANA Partners. The firm is confident the company will undergo changes, which it believes could include a breakup. It raised its price target for shares to $52 from $39.
June 19, 2015
16:24 EDTCAGStocks end week higher after Fed reassures on gradual pace of rate increases
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16:17 EDTCAGOn The Fly: Top stock stories for Friday
Stocks on Wall Street began the session in negative territory and remained there throughout the entire day. The economic calendar was quiet and the news flow was slow, leaving the averages to move in a narrow range until the final hour, when “quadruple witching” action kicked in and moved them a leg lower. The simultaneous expiration of futures and options can cause increased volatility, which occurred as the day’s volume was light. ECONOMIC EVENTS: In the U.S., Baker Hughes reported that the U.S. Rig Count declined 2 rigs from last week to 857. In Europe, the ECB agreed to raise the limit on Emergency Liquidity Assistance to Greek banks for the second time in a week, though there were contradictory reports about the size of the increase. Next, the eurozone's heads of government will meet for an emergency summit to discuss Greece on Monday. In Asia, China's Shanghai Composite index dropped 6.4%, bringing the benchmark's weekly loss to 13.3% and sending the index into correction territory. The Bank of Japan kept interest rates unchanged and maintained its asset purchases program, as expected. The BOJ also said it will reduce the number of policy meetings it holds each year to 8 from the current 14 meetings, putting it on par with other major central banks. COMPANY NEWS: Shares of ConAgra (CAG) advanced $4.31, or 11.02%, to $43.43 after activist investor Jana Partners reported that it has acquired a 7.2% stake in the packaged foods company. Jana suggested that the company should undertake a strategic review of its strategy and corporate structure to determine if its businesses are optimally positioned to succeed, as well as various potential alternative transactions and structures... Another food producer, Hershey (HSY), fell $3.38, or 3.66%, to $88.89 after lowering its outlook for this fiscal year. The chocolate maker said its North America confectionery business is on track to deliver on its 2015 financial objectives, but cited growth in China that was below expectations for its lowered outlook. Hershey also announced the implementation of a new productivity initiative that will result in the company cutting about 300 jobs by the end of this year. MAJOR MOVERS: Among the notable gainers following the activist involvement in ConAgra were a number of its peers, including Pinnacle Foods (PF), which rose 8.58% to $46.80, and Treehouse Foods (THS), which gained 4.86% to $75.55. Also higher was KB Home (KBH), which gained $1.41, or 9.43%, to $16.37 after the homebuilder reported better than expected results for its fiscal second quarter. Among the noteworthy losers was Healthways (HWAY), which sunk $3.13, or 20.15%, to $12.40 after the health management solutions provider lowered its revenue outlook for fiscal year 2015. Also lower were shares of Finisar (FNSR), which fell $2.27, or 10.25%, to $19.88 and were downgraded at Raymond James following the company's fourth quarter earnings report last night. INDEXES: The Dow dropped 101.56, or 0.56%, to 18,014.28, the Nasdaq fell 15.95, or 0.31%, to 5,117.00, and the S&P 500 lost 11.49, or 0.54%, to 2,109.75.
14:46 EDTCAGConAgra hits new 52-week high, up nearly 11% after JANA discloses 7.2% stake
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12:29 EDTCAGOn The Fly: Top stock stories at midday
Stocks began the session in quiet fashion and trading has remained that way throughout the morning, despite a lack of a resolution in Greece and a steep slide in China's stock market. The averages spent the morning in negative territory, but the losses have been mild and the indexes have drifted in a narrow range. Of note, today is “quadruple witching,” which can create extra volatility toward the close. ECONOMIC EVENTS: In the U.S., no major data was reported. The latest count of U.S. oil and gas rigs by Baker Hughes is scheduled for 1:00 pm EDT. In Europe, the ECB held a call on the provision of Emergency Liquidity Assistance to Greek banks and agreed to raise the limit on the emergency funding for the second time in a week, though there were contradictory reports about the size of the increase. Next, the eurozone's heads of government will meet for an emergency summit to discuss Greece on Monday. In Asia, China's Shanghai Composite index closed the session down 6.4%, bringing the benchmark's weekly loss to 13.3% and sending the index into correction territory. The Bank of Japan kept interest rates unchanged and maintained its asset purchases program, as expected. The central bank also said it will reduce the number of its Monetary Policy Meetings to 8 per year from the current 14 meetings, putting it on par with other major central banks. COMPANY NEWS: Shares of ConAgra (CAG) advanced over 8.5% after activist investor Jana Partners reported that it has acquired a 7.2% stake in the packaged foods company. Jana suggested that the company should undertake a strategic review of its strategy and corporate structure to determine if its businesses are optimally positioned to succeed, as well as various potential alternative transactions and structures. Credit Suisse raised its price target on ConAgra to $42 from $34 following the announcement of Jana Partners' involvement, but the firm said ConAgra's enormous debt load from the Ralcorp acquisition limits upside potential from an all-out break up and doubts the board would consider this option. Deutsche Bank similarly said that the firm's sense is that the company's board is reluctant to break up the company's parts. Nonetheless, Deutsche laid out its "optimistic" sum-of-the-parts analysis, which yields a $47 potential value for the stock. The firm, however, raised its price target for ConAgra shares to only $38 from $36 and kept a Hold rating on the name. MAJOR MOVERS: Among the notable gainers was AirMedia Group (AMCN), which gained 42% after announcing receipt of non-binding "going private" proposal for a group led by its CEO to acquire all of the outstanding shares of AirMedia for $6.00 in cash per American depositary share. Also higher was KB Home (KBH), which gained nearly 10% after the homebuilder reported better than expected results for its fiscal second quarter. Among the noteworthy losers was Healthways (HWAY), which sunk 22% after the health management solutions provider lowered its revenue outlook for fiscal year 2015. Also lower following a guidance cut was Hershey (HSY), which fell 4%. The chocolate maker cited growth in China that was below expectations for its lowered outlook and also announced the implementation of a new productivity initiative that will result in the reduction of approximately 300 jobs by the end of 2015. INDEXES: Near midday, the Dow was down 54.34, or 0.3%, to 18,061.50, the Nasdaq was down 15.23, or 0.3%, to 5,117.72, and the S&P 500 was down 6.64, or 0.31%, to 2,114.60.
10:19 EDTCAGHigh option volume stocks
High option volume stocks: FISV SID MTH MDXG BEAV INVE AMCN CAG OVAS MCHP
09:18 EDTCAGOn The Fly: Pre-market Movers
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08:08 EDTCAGConAgra July volatility elevated into Jana Partners disclosing a 7.2% stake
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07:20 EDTCAGConAgra board may be reluctant to a break-up, says Deutsche Bank
After JANA Partners reported an activist stake in ConAgra, Deutsche Bank says its sense is that the board is reluctant to breaking up the company's parts. Nonetheless, Deutsche laid out its "optimistic" sum-of-the-parts analysis, which yields a $47 target for the stock. This includes $27 for the Consumer division, $11 for Commercial, $6 for Private Brands and $3 for the Ardent joint venture. The firm raised its price target for ConAgra shares to $38 from $36 and keeps a Hold rating on the name
07:16 EDTCAGConAgra breakup unlikely, says Credit Suisse
Credit Suisse raised Neutral rated ConAgra's price target to $42 from $34 following the announcement of activist investor Jana Partners' 7.2% stake in the company. The firm said ConAgra's enormous debt load from the Ralcorp acquisition limits upside potential from an all-out break up and doubts the Board would consider this option. Credit Suisse believes the most logical recommendation would be to sell the struggling private label business to TreeHouse for $4B in a tax advantaged structure relieving management from the distraction of turning the business around.
06:46 EDTCAGConAgra price target raised to $44 from $37 at Bernstein
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05:55 EDTCAGStocks with implied volatility above IV index mean; THC CAG
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June 18, 2015
19:00 EDTCAGOn The Fly: After Hours Movers
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17:57 EDTCAGJANA prepared to seek three ConAgra board seats
JANA is prepared, if necessary, to nominate Messrs. Alford, Lawrence and Rosenstein for election to ConAgra's board of directors and to participate in the solicitation of proxies in support of the Potential Nominees. JANA believes that the Potential Nominees possess the necessary expertise, experience and focus on shareholder value to help the Board evaluate and address opportunities for shareholder value creation, including but not limited to: undertaking a strategic review of the company’s strategy and corporate structure to determine if its businesses are optimally positioned to succeed, as well as various potential alternative transactions and structures; addressing the company’s operational performance and cost structure; and optimizing the company’s capital allocation policies and capital structure. JANA has requested, however, that the company delay the June 21 deadline to submit notice of stockholder nominations for the company’s 2015 annual meeting of stockholders in order to give the company and JANA more time to have collaborative discussions regarding the steps JANA believes the company should take to maximize shareholder value, as well as why JANA believes stockholders would benefit from the addition of the Potential Nominees to the Board.
16:59 EDTCAGConAgra says 'looks forward to opening discusssions with JANA'
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16:53 EDTCAGConAgra up 6.1% after Jana Partners reports stake, says company is undervalued
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16:52 EDTCAGJana Partners reports 7.2% stake in ConAgra
Jana Partners acquired the shares because they believe the shares are undervalued and represent an attractive investment opportunity. JANA believes that the company has significantly underperformed in shareholder value creation. Most significantly, the acquisition of Ralcorp Inc. in January 2013, which in JANA’s opinion was the most significant recent strategic decision made by the board, has been followed by disappointing performance for shareholders, repeated guidance misses, negative revisions to long term earnings targets, no dividend per share growth, and operating performance challenges. Issues with this acquisition led to the company taking a $1.3B impairment on March 26, after which JANA began purchasing the shares and analyzing opportunities for improved shareholder value creation. JANA believes that in the period since the Ralcorp acquisition, the board has failed to adequately address the shareholder value destruction and persistent underperformance that followed the Ralcorp acquisition.
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