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Stock Market & Financial Investment News

News Breaks
May 28, 2014
14:11 EDTFORMFormFactor rises 18.3%
FormFactor is up 18.3%, or $1.12, to $7.24
News For FORM From The Last 14 Days
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February 4, 2016
16:47 EDTFORMOn The Fly: Top stock stories for Thursday
Stocks had a roller coaster session, moving in a wide range and crossing the flat line several times during the day as the market continues to move in conjunction with the price of oil. Early in the session oil prices met resistance near $34 a barrel and equities were up by triple digits. When the price of crude pulled back, equities followed suit and ultimately turned negative. Oil prices struggled during the afternoon hours and closed down for the day. However, the averages drifted higher into the close and finished in the green. ECONOMIC EVENTS: In the U.S., the Labor Department said that productivity fell at an annual rate of 3% in the fourth quarter, marking the biggest quarterly decline in nearly two years and worse than the expected decline of 2%. Labor costs rose 4.5% in the fourth quarter, versus expectations for an increase of 4.3%. Initial jobless claims rose to 285,000 in the week ended January 30, versus expectations for 277,000 first-time claims. Factory orders declined 2.9% in December, versus expectations for them to be down 2.8% for the month. In Europe, the European Commission lowered its 2016 economic growth forecast for the 19-nation single currency area to 1.7% from the 1.8% expansion the commission had forecast in November. The Bank of England also cut its economic growth forecasts, saying it now expects Britain's economy to grow 2.2% this year and 2.3% next year, which is down from the 2.5% growth for 2016 and 2.6% in 2017 that it previously predicted. Additionally, the BoE maintained its bank rate and held the size of its asset purchase program steady. COMPANY NEWS: Shares of GoPro (GPRO) sunk to all-time lows after the action camera maker reported fourth quarter revenue that fell $60M short of expectations and guided first quarter revenue even further below analyst forecasts. The stock fell as low as $9.01 early in the session before ending the day down 8.68% at $9.78. Ambarella (AMBA), a chip supplier that has often traded in tandem with GoPro in the past, gained 5.13% to $39.35, with several analysts highlighting the company's healthy business outside of GoPro... Sumner Redstone stepped down as executive chairman of both CBS (CBS) and Viacom (VIA, VIAB), being replaced by the CEOs of the companies in both cases. CBS shares were up 0.31% after Leslie Moonves was named the next chair of its board, while Class A shares of Viacom were up 2.33% after Philippe Dauman was selected to succeed Redstone... Mattel (MAT) and Hasbro (HAS) gained a respective 1.67% and 1.2% following Bloomberg's report that the two toymakers have held intermittent merger discussions after Hasbro approached its peer late last year. MAJOR MOVERS: Among the notable gainers was Cascade Microtech (CSCD), which spiked 32.26% to $20.21 after agreeing to be acquired by FormFactor (FORM) for $16 per share. FormFactor declined 12.61% following the news. Also higher was VirnetX (VHC), which soared 46.14% to $7.00 after being awarded $625.6M in a patent dispute against Apple (AAPL). In addition, GrubHub (GRUB), McGraw Hill (MHFI) and Buffalo Wild Wings (BWLD) rose 12.8%, 7.7% and 7.6%, respectively, following their quarterly reports. Among the noteworthy losers were Ralph Lauren (RL) and Kohl's (KSS), which fell a respective 22.2% and 18.8% after reporting quarterly earnings and issuing underwhelming financial outlooks, with the negative signals also dragging down department store operators J.C. Penney (JCP), Macy's (M) and Nordstrom (JWN). Also lower was ConocoPhillips (COP), which declined 8.65% to $35.29 after the oil and gas explorer reported a worse than expected quarterly loss and slashed its dividend to 25c from 74c per share. CEO Ryan Lance said the decision to reduce the dividend was a "difficult one," but the company believes it is prudent to plan for lower commodity prices for a longer period of time. Meanwhile, AstraZeneca (AZN), Credit Suisse (CS) and MetLife (MET) slipped 5.9%, 10.8% and 5.3%, respectively, following their quarterly reports. INDEXES: The Dow rose 79.92, or 0.49%, to 16,416.58, the Nasdaq gained 5.32, or 0.12%, to 4,509.56, and the S&P 500 advanced 2.92, or 0.15%, to 1,915.45.
08:36 EDTFORMFormFactor and Cascade Microtech host joint conference call
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07:17 EDTFORMFormFactor reports Q4 adjusted EPS 10c, consensus 9c
Reports Q4 revenue $71.8M, consensus $70.46M.
07:09 EDTFORMFormFactor to acquire Cascade Microtech for $16.00 per share
FormFactor (FORM) and Cascade Microtech (CSCD) announced that they have entered into a definitive agreement under which FormFactor will acquire all outstanding Cascade shares in a cash and stock transaction. For each share of Cascade stock held, Cascade stockholders will be entitled to receive $16.00 in cash and 0.6534 of a share of FormFactor common stock, subject to the terms of the merger agreement. The transaction values Cascade at $21.13 per share, or $352M in equity value based on the closing price of FormFactor's stock on February 3, of $7.85. The 2015 revenues of the combined company on a pro forma basis would be over $426M. This transaction is expected to be immediately accretive to FormFactor's earnings per share. The combined company expects to realize $10M-$12M in annualized cost synergies within 18-24 months of closing, and to accelerate the tax benefit of monetizing FormFactor's approximately $300 million in net operating losses. Under the terms of the definitive agreement, FormFactor will acquire Cascade for approximately $352M in aggregate consideration, consisting of $270M in cash and approximately 10.4M shares of FormFactor common stock, valued at $7.85 per share as of February 3. At closing, Cascade common stockholders are expected to own approximately 15% of the combined company. FormFactor intends to fund the cash consideration for the transaction using approximately $120M of cash on hand and approximately $150M in debt financing. The transaction is not subject to a financing condition. The transaction was unanimously approved by the boards of both companies. The transaction is expected to close in mid-2016.
07:07 EDTFORMFormFactor to acquire Cascade Microtech for $16.00 per share

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