Ultimate Market Recap: IPad Mini Innuendos, Ancestry.com Buys 1000Memories

Buzz at the Bell: MetroPCS Backslides, Apple Recovers

Shares of MetroPCS Communications (NYSE:PCS) closed 18 percent higher on Tuesday, but moved lower in pre-market trading today. The company is in talks to merge with Deutsche Telekom’s T-Mobile USA. The potential deal would combine T-Mobile and MetroPCS, with Deutsche Telekom holding the majority of shares. Last year, the government blocked the company’s deal with AT&T (NYSE:T) to sell T-Mobile.

Apple (NASDAQ:AAPL) shares continue to recover this morning. Rumors keep swirling that an iPad Mini will be announced in mid-October. The tech giant typically holds its fiscal fourth quarter earnings conference call in mid-October. However, this year’s call has been scheduled a week later on October 25, raising more speculation for a special iPad event taking place soon.

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Express (NYSE:EXPR) shares plunged 22 percent on Tuesday, and continue to move lower in pre-market trading. The apparel chain announced its third quarter earnings would miss its forecast. Higher than normal promotional activity had to be taken in order to reduce inventory levels.

Shares of Mosaic (NYSE:MOS) are down this morning after yesterday reporting a decline in quarterly earnings. For its first quarter, the company posted net income of $429.4 million ($1.01 per share), down 18.4 percent from $526 million a year earlier. Revenue also dropped 18.8 percent. “The long-term outlook for crop nutrition is outstanding, and Mosaic is well positioned as the world’s largest potash and phosphates producer,” said Jim Prokopanko, president and chief executive officer of Mosaic. “Drought and other weather-related issues in several of the world’s key agricultural regions severely impacted this year’s corn, soybean and wheat crops and provided a vivid reminder of just how tenuous global food security is. Our products are essential in helping the world grow the food it needs.”

Investor Insight: Shareholders Crave Information and Clarity from Facebook

AT&T Jumps on Clean Energy Bandwagon and 4 Hot Stocks Moving Today

Facebook, Inc. (NASDAQ:FB) informed ad marketers that it is effective for advertising due to the fact that it knows who its users are and whom they trust, The New York Times reports. Facebook allows businesses to “relate” to consumers, Facebook COO Sheryl Sandberg told advertisers.

AT&T, Inc. (NYSE:T): Reliable and affordable alternative power generation is crucial for a clean energy future. AT&T took a step toward that future with the announcement of a planned additional 9.6 MW of fuel cell power from clean energy provider Bloom Energy. The new installations will make AT&T Bloom Energy’s largest non-utility customer.

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Nokia Corporation (NYSE:NOK): ComScore has stated that 116.5 million people in the U.S. owned smartphones during the three month period that ended in August, which is a 6 percent rise compared to May. Google Android (NASDAQ:GOOG) has been named the top smartphone platform with 52.6 percent market share, and Apple’s (NASDAQ:AAPL) share saw a rise of 2.4 percentage points, to 34.3 percent. RIM has the third place ranking at 8.3 percent share, with Microsoft (NASDAQ:MSFT) at 3.6 percent, and Symbian (NYSE:NOK) at 0.7 percent. Device manufacturer Samsung (SSNLF) has the leading OEM rating with 25.7 percent of U.S. mobile subscribers, with LG next at 18.2 percent share. Apple is gaining on the #2 ranking with 17.1 percent of mobile subscribers, with Motorola at 11.2 percent and HTC at 6.3 percent.

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WellPoint, Inc. (NYSE:WLP) plans to commence an offering, which is subject to market conditions along with additional factors, of $1.35 billion principal amount of senior convertible debentures. The debentures are to be due during 2042 and will be offered and sold to qualified institutional buyers pursuant to Rule 144A beneath the Securities Act of 1933. The interest rate, conversion rate, and other terms are to be decided via negotiations between the company and the initial purchasers of the debentures. Additionally, WellPoint plans to grant to the initial purchasers of the debentures the ability to buy as much as an additional $150 million principal amount of debentures to cover overallotments.

Sarepta BioPharma (NASDAQ:SRPT) target price was raised by Piper Jaffray from $11.00 to $38.00 in a report that was released on Wednesday, and now, they have an overweight rating on the stock.

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Afternoon Movers: Monsanto Disappoints, Apple Climbs on Mini Rumors

Shares of Monsanto (NYSE:MON) declined 1.7 percent this afternoon following financial results for its fourth quarter. The company reported a loss of $229 million (44 cents per share), compared to a loss of $112 million (21 cents per share) a year earlier. Revenue also fell 6.1 percent to $2.11 billion.

Family Dollar Stores (NYSE:FDO) shares jumped are up 3.7 percent this afternoon. For the fourth quarter, the company earned $80.9 million (69 cents per share), compared to $79.8 million (67 cents per share) a year earlier. Revenue rose 10.8 percent to $2.36 billion. “Fiscal 2012 was a year of great progress for Family Dollar. We expanded our merchandise assortment to increase our relevancy to our customers; we continued to improve the shoppability of our stores; and we repositioned our leadership team to better support our growth,” said Howard R. Levine, chairman and chief executive officer. Dollar General (NYSE:DG) shares edged slightly higher on the news.

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Best Buy (NYSE:BBY) shares gained 3.8 percent on Wednesday. Founder Richard Schulze and several private equity firms are reportedly examining the books of the struggling retailer. The process is being seen as the early steps to what may become an $11 billion buyout.

Shares of Apple (NASDAQ:AAPL) are up around 0.9 percent this afternoon. Rumors keep swirling that an iPad Mini will be announced in mid-October. The tech giant typically holds its fiscal fourth quarter earnings conference call in mid-October. However, this year’s call has been scheduled a week later on October 25, raising more speculation for a special iPad event taking place soon.

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Ancestry.com Acquires 1000Memories.com and 4 Hot Stocks Attracting Investor Attention

Ancestry.com Inc. (NASDAQ:ACOM): Ancestry.com Inc., the world’s largest online family history resource, announced that they have acquired 1000Memories Inc., the San Francisco based start-up that has been focused on helping people digitize and share the estimated 1.7 trillion paper photos stored in their albums, attics, and shoe boxes. The 1000Memories purchase also brings with it the ShoeBox app that turns mobile phones into photo scanners, providing an easy way to digitize, save, and share photos online or on-the-go. Terms of the transaction were not disclosed. Ancestry.com does not expect the acquisition to have a material impact on their financial guidance as issued in connection with their second quarter earnings release on July 25, 2012. It is expected that all 1000Memories employees will join Ancestry.com immediately.

Best Buy Co. Inc. (NYSE:BBY): According to Reuters, Best Buy Co. Inc.’s  founder Richard Schulze and at least four private equity firms have started examining the books in the consumer electronics chain. This could indicate early steps toward what could become a potential $11 billion  buyout.

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MetroPCS Communications, Inc. (NYSE:PCS): Deutsche Telekom (DTEGY) and MetroPCS Communications, Inc. have signed a definitive agreement to combine T-Mobile USA and MetroPCS. The combined company, which will retain the T-Mobile name, will have the expanded scale, spectrum and financial resources to aggressively compete with the other national United States wireless carriers. Deutsche Telekom’s supervisory board and MetroPCS’s board of directors have approved this transaction which is structured as a recapitalization where MetroPCS will declare a one for two reverse stock split, make a cash payment of $1.5 billion to their shareholders, and acquire all of T-Mobile’s capital stock by issuing 74% of their common stock on a pro forma basis to Deutche Telekom.  Deutsche Telekom has also agreed to roll their existing inter-company debt into new $15 billion senior unsecured notes of the combined company, provide the combined company with a $500 million unsecured, revolving credit facility and provide a $5.5 billion backstop commitment for certain MetroPCS third-party financing transactions. Based on analyst consensus estimates for 2012, the combined company is expected to have approximately 42.5 million subscribers, $24.8 billion of revenue, $6.3 billion of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), $4.2 billion of capital expenditures and $2.1 billion of free cash flow in 2012.

Bank of America (NYSE:BAC):  According to the Financial Times, traders and analysts are leaving many of the large banks to join asset managers and other financial companies that have fewer risk taking constraints.

Apple Inc. (NASDAQ:AAPL):  According to the Wall Street Journal, Apple Inc.’s Asian component suppliers have started mass production of a new tablet computer that is smaller than the current iPad. This, the company anticipates, will allow them to be competitive against rivals such as Google (NASDAQ:GOOG) and Amazon.com (NASDAQ:AMZN).

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Netflix Climbs After Analyst Note and 4 Hot Stocks Turning Heads

Netflix, Inc. (NASDAQ:NFLX) has climbed following Citigroup analyst Mark Maheny’s statement in a note to investors that overall customer satisfaction with the company has shown improvement, for the first time since last summer. The amount of consumers who are very or extremely satisfied with the company has seen a rise, according to Citigroup’s proprietary survey, Maheny said. Also, the amount of respondents listing Netflix as a top destination also saw an increase. The analyst believes that Netflix’s valuation is “highly reasonable,” and it keeps its Buy rating and a price target of $120 on the stock. In early trading, Netflix saw an increase of $3.07, or 5.44 percent, to $59.55.

Monsanto Co. (NYSE:MON): Vegetable sales, which saw a rise during Q4 compared to the previous year’s period, fell year-over-year. The company believes that the vegetable business will return to growth during 2013 and still anticipates it reaching its third largest crop platform in terms of gross profit in the coming years. Cotton revenue saw a fall year-over-year  partially to acre shifts to other crops.

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Family Dollar Stores Inc. (NYSE:FDO) sees its FY13 CapEx at $600 to $650 million, and it sees about 500 new store openings and 70-90 store closings. The company has a FY13 effective tax rate of 36 to 37 percent.

Ocwen Financial Corp. (NYSE:OCN) along with private equity firm WL Ross & Co. LLC have begun an agreement whereby Ocwen is to acquire Homeward Residential Holdings, which includes its various residential mortgage loan servicing and origination operating subsidiaries, for about $588 million in cash and $162 million in Ocwen convertible preferred stock. Homeward services nearly 422,000 mortgage loans with an aggregate unpaid principal balance totaling more than $77 billion. Its loan origination business includes correspondent and retail lending and has a focus only on high quality Agency-conforming mortgages. Homeward brings its global servicing platform along with a growing origination business operating at a $10 billion annual run-rate after its launch as recently as 2011. Subject to regulatory approvals, the transaction should close by the end of the year. It is not necessary for Ocwen to raise any additional equity capital to close the transaction.

Leap Wireless International Inc. (NASDAQ:LEAP) has fallen 14 percent following MetroPCS’ deal, and it has also been downgraded by JPMorgan.

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