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Stock Market & Financial Investment News

News Breaks
December 6, 2012
10:42 EDTJCP, SPLSJ.C. Penney rises after partner reveals REIT plans
J.C. Penney (JCP) is advancing after the company's Canadian partner, retailer Loblaw Companies, earlier today announced that it would launch a Real Estate Investment Trust, or REIT. The REIT, which will sell units via an IPO, will acquire a significant portion of Loblaw's real estate assets, the Canadian company stated. Initially Loblaw, whose stock is soaring nearly 20% on the Toronto Stock Exchange on the news, intends to turn over real estate currently worth more than C$7B to the REIT. Loblaw's announcement may be leading some investors to speculate that J.C. Penney and other American retailers may take similar steps in order to monetize their assets. Loblaw in July signed a four year deal to open almost 700 shops featuring its Joe Fresh fashions within J.C. Penney's stores. In mid-morning trading, J.C. Penney jumped 91c, or 5.19%, to $18.44. Also climbing was Staples (SPLS), which rose 1.42% to $11.45.
News For JCP;SPLS From The Last 14 Days
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June 30, 2015
15:20 EDTJCPMoody's raises J.C. Penney liquidity rating to SGL-1 from SGL-2
Moody's Investors Service revised J.C. Penney's rating outlook to positive from stable. Moody's also affirmed the company's Caa1 Corporate Family Rating, and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-2. "The rating outlook revision to positive from stable reflects Moody's view that JC Penney's operating performance has shown signs of improvement as a result of better merchandising, cost controls, and integration of its online business" said Moody's Vice President Scott Tuhy. He added, "we have seen positive momentum building for the company to achieve $700M to $800M of adjusted EBITDA, a level in which earnings would fully cover cash flow and interest". The upgrade in the Speculative Grade Liquidity rating primarily reflects the company's improved operating performance as we expect free cash flow to be near break-even levels and the company's meaningful cash balances are sufficient to cover expected seasonal working capital needs.
June 25, 2015
14:05 EDTSPLSStaples, Office Depot shares head lower as analyst highlights merger pitfalls
Shares of Staples (SPLS) and Office Depot (ODP) are in negative territory following a Citi research note identifying significant downside potential if their proposed merger is blocked. The note follows news on June 23 that a U.S. District Court has approved the preliminary injunction of the US Foods-Sysco (SYY) merger. WHAT'S NEW: In the wake of the FTC's preliminary injunction of the US Foods-Sysco deal, Citi's Kate McShane issued a note on the proposed merger of Staples and Office Depot. The FTC is expected to release a public version of its Sysco ruling this Friday, and McShane said details of the injunction could shed light on whether the Staples-Office Depot merger is likely to follow a similar path. The analyst sees a 40% and 49% downside scenario for Staples and Office Depot, respectively, were the merger to fail, versus a 20% upside for Office Depot shares if a successful outcome is reached. WHAT'S NOTABLE: The FTC stated on June 23 that the Sysco-US Foods merger "would lead to higher prices and diminished service," and U.S. District Judge Amit Mehta cited the probability of "substantially" reduced competition. Building on those pieces of information, Kate McShane notes that a merged Staples-Office Depot may only capture 15%-25% of the addressable market, in contrast to the 75% market share of a Sysco and US Foods combination. McShane cautioned that if she limits her analysis to just Fortune 100 companies, the 15%-25% figure would likely be higher, but refrains from stronger speculation on the probability of the deal closing. On June 24, the New York Post cited sources calling the merger "unlikely" after the Sysco injunction. As noted by Citi, if regulator sentiment swings against the office supply companies, shares could head sharply lower. PRICE ACTION: Staples is down 0.4% in afternoon trading, while Office Depot is down 0.3%.
08:50 EDTSPLSStaples has 20% upside if Office Depot deal closes, says Citi
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06:47 EDTSPLSStaples volatility low into expected closure of its merger with Office Depot
Staples (SPLS) July weekly call option implied volatility is at 23, July is a 22, September is at 28; compared to its 52-week range of 20 to 53, suggesting decreasing price movement into the expected closure of its proposed $6.3B merger with Office Depot (ODP).
June 24, 2015
10:26 EDTJCPStocks with call strike movement; TWTR JCP
Twitter (TWTR) December 40 call option implied volatility increased 1% to 44, J.C. Penney (JCP) November 20 call option implied volatility decreased 5% to 42 according to IVolatility.
09:10 EDTSPLSOn The Fly: Pre-market Movers
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07:12 EDTSPLSStaples deal unlikely after Sysco-US Foods merger blocked, NY Post reports
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June 19, 2015
09:19 EDTSPLSStaples sees Office Depot deal completed by end of year
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08:20 EDTSPLSOffice Depot shareholders approve acquisition by Staples
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June 18, 2015
07:32 EDTSPLSStaples Advantage Canada announces partnership with Ital Florist
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