Despite a recent fund manager who made a negative comment about PALM on TV that created a lot of daytraders to sell, we can clearly see that the trend of professionals "on the go" are buying up the PALM products as fast as they can put them on the shelves. The Blackberry is not the way to go. The new PALM Treo 700 can open attachments and this is a very desirable feature to many. Click To See The Palm 700
The mutual funds have increased their positions today as daytraders got spooked out.
Glenview Capital Management, however has sold 1/2 of their position or 1,400,000 shares, Oppenheimer Funds have increased their position +1,200% adding 8,370,000 shares. Vanguard Funds have increased their holding +109% by purchasing almost 2,000,000 more shares.
Looks like the SMART money is betting on PALM and so are we.
Friday, March 24, 2006
SVI and SVI Warrant Holders
SVI stock is up on Tim Hortons IPO today - Symbol THI.
The story is Great, however, short term, we would look for a sell off at any time after this short covering spike from shorts who sold earlier this week and also from the CNBC hype that aired on Wednesday. If you are out, look to re-enter SVI under $10.00 and the warrants in a range of $3.90 - $4.00.
We still need the proxy vote approval from SVI shareholders and this will take some time. The Hot Money may exit fast if they become impatient in this lag period; waiting for a proxy vote.
The story is Great, however, short term, we would look for a sell off at any time after this short covering spike from shorts who sold earlier this week and also from the CNBC hype that aired on Wednesday. If you are out, look to re-enter SVI under $10.00 and the warrants in a range of $3.90 - $4.00.
We still need the proxy vote approval from SVI shareholders and this will take some time. The Hot Money may exit fast if they become impatient in this lag period; waiting for a proxy vote.
As Predicted - Thomas Weisel Partners - TWPG - On Fire!
TWPG is like Greenhill & Co. See GHL Chart Here
TWPG was in the $20 range yesterday.
PALM shares will run next on very good news.
TWPG was in the $20 range yesterday.
PALM shares will run next on very good news.
We are Bullish on PALM Today On Great Earnings
PALM revenues were up 36%.
Filling the GAP at the $20 level now.
Also - There should be several analyst upgrades to follow the great earnings just released. Professional traders are washing out the home traders now who hold 100 shares, so expect the stock to lift later today through next week.
"Wash Out" = When Professional traders have a great stock and dip the shares hard to suck out the weak shareholders to increase their position before moving the shares higher.
Filling the GAP at the $20 level now.
Also - There should be several analyst upgrades to follow the great earnings just released. Professional traders are washing out the home traders now who hold 100 shares, so expect the stock to lift later today through next week.
"Wash Out" = When Professional traders have a great stock and dip the shares hard to suck out the weak shareholders to increase their position before moving the shares higher.
Thursday, March 23, 2006
More On PALM - Blow Out Earnings + Secret Product To Be Announced (Target $25 Short Term)
Palm Reports Q3 FY06 Results - Quarterly Revenue $388.5M, Up 36% Year Over Year
Treo Smartphones Up More Than 100% Year Over Year (Notice the trend)
Palm will be the talk on CNBC, MSNBC, Talk Radio etc... tomorrow.
Treo Smartphones Up More Than 100% Year Over Year (Notice the trend)
Palm will be the talk on CNBC, MSNBC, Talk Radio etc... tomorrow.
Legging Into CBOT - BOT and PALM, Inc. - PALM
Expect a series up upgrades from analysts on PALM.
The change over from cell phone and Palm 650 users to the "new" Palm Treo 700 has just gotten started. The features of the new Treo 700 are unbeatable and in high demand for users on the go.
The change over from cell phone and Palm 650 users to the "new" Palm Treo 700 has just gotten started. The features of the new Treo 700 are unbeatable and in high demand for users on the go.
Movers: TWPG, OS, ACI, BTU, SVI, SVI Wts, RAIL, ARII, VPRT
Our PICKS Look solid.
NYSE Group said it has received approval from the Securities and Exchange Commission for its hybrid market model. The hybrid market blends electronic trading of stocks and other securities with the traditional floor-based NYSE auction market. The SEC approval allows the exchange to expand hybrid trading beyond the current list of 154 companies and to incorporate new trading technology for floor brokers and specialists. The exact implementation timeframes will be announced separately.
Stock activity...Looks like the "wash out" before the run.
NYSE Group said it has received approval from the Securities and Exchange Commission for its hybrid market model. The hybrid market blends electronic trading of stocks and other securities with the traditional floor-based NYSE auction market. The SEC approval allows the exchange to expand hybrid trading beyond the current list of 154 companies and to incorporate new trading technology for floor brokers and specialists. The exact implementation timeframes will be announced separately.
Stock activity...Looks like the "wash out" before the run.
Wednesday, March 22, 2006
FreightCar America - RAIL - Forms a Technical Cup and Handle Chart Formation - A Bullish Sign
We would anticipate that the stock will continue its steady move up towards the $80 - $85 level very soon following its brief dip in early March. RAIL only has 12,530,000 shares outstanding. We also anticipate that we will get news on an announcement of a 2:1 stock split soon. Shares also appear to be in very tight institutional hands who own 88.6% of the shares.
American Railcar ARII - Should follow suit to higher levels too. Same chart pattern. Bullish as well.
American Railcar ARII - Should follow suit to higher levels too. Same chart pattern. Bullish as well.
We scooped CNBC on The Jamba Juice News and Recommendation
Be careful because this stock trades on the AMEX and the executions are very difficult to fill vs. a stock that trades on Nasdaq. Meaning, when you go to buy the shares the specialist lifts the stock higher and when you go to sell he drops the stock lower. Use limit orders and please don't get caught chasing the shares because the proxy votes still have to be mailed from SVI and SVI majority shareholders have to agree on the deal. Therefore, the shares will trade up and down until the "final" merger has been officially approved by "all" parties.
Jamba Juice Holders Approve Acquisition
Like we suggested all along, the Jamba Juice majority shareholders would have had to approve the merger or Jamba Juice and SVI would not have made any merger announcements.
Tuesday, March 21, 2006
NYSE Group - NYX Seen On BUYINS.NET List of Naked Short Sellers - Expect Buying From Short Sellers Soon
With the acquisition of AX this stock should break PAR.
NYSE Group - NYX, could eventually follow the same trading pattern as CBOT Holdings - BOT in due time.
NYSE Group - NYX, could eventually follow the same trading pattern as CBOT Holdings - BOT in due time.
The Word Is Getting Out About The Jamba Juice Merger
However it appears that original SVI holders may be selling to lock in profits. Tread cautiously here.
Monday, March 20, 2006
Jamba Juice Merger Update
Sunday News Article about the Jamba Juice merger
Jamba Juice Research - Click Here
Merger News on the Jamba Juice web site.
On March 10, 2006, Services Acquisition Corp. International ("SVI") issued a press release with respect to the execution of an Agreement and Plan of Merger ("Merger Agreement") with JJC Acquisition Company, a wholly-owned subsidiary of SVI and a California corporation, and Jamba Juice Company, a California corporation ("Jamba Juice") in connection with SVI's acquisition of Jamba Juice. In connection with the acquisition of Jamba Juice, SVI also entered into a Securities Purchase Agreement ("Purchase Agreement") and a Registration Rights Agreement ("Registration Agreement") with certain investors for a private placement financing in order to raise the proceeds necessary to provide a portion of the funds necessary to acquire Jamba Juice.
SVI is a company that was formed for the specific purpose of consummating a business combination. SVI raised net proceeds of approximately $127 million through its initial public offering consummated in July 2005 and has dedicated its time since the offering to seeking and evaluating business combination opportunities. The management of SVI includes former executives from organizations such as Blockbuster Entertainment Group, AutoNation and Boca Resorts.
Special purpose acquisition vehicles, known as SPACs, have started popping up as alternative financing vehicles in the public sector. SPACs are companies that have no operations but that go public with the intention of acquiring a company with the proceeds of an initial public offering. Large institutional investors, such as hedge funds, usually buy shares of SPACs.
The IPO market has been up and down and has not been very robust, so SPACs become a fairly safe haven in which institutional investors can invest and enjoy the liquidity of the public markets, which is what hedge funds like to do.
Of the funds raised by SVI in early July 2005, $7.35 per share was put into a trust account and filings specify that if they don't buy a company then the money is returned in 2007.
So, there sits $127,000,000 in trust.
The $127,000,000 + $231,000,000 raised in a private placement with institutional investors is what they will have at the close of the Jamba Juice merger.
The balance of money not used in the merger will remain in the company.
Before the merger can go through SVI must file a proxy with the SEC.
SVI cannot have more than 20% of their shareholders reject the merger by proxy vote and they will also need 51% of their shareholders to accept the merger.
As for the warrants. They are exerciseable into the common for 1 share of common stock of SVI at $6.00 and expire on 6/28/09.
The warrants can be called for conversion if the stock trades at $11.50 or higher for 20 out of 30 days. You will have a choice at that point in exercising the warrants to buy the stock at $6.00 or sell the warrants in the open market at the trading price and let someone else convert the warrants for shares. At parity, if the stock is at $11.50 then the warrants should trade at ($11.50 - $6.00) or $5.50 per warrant. If the stock is at $15.00 the warrants would be valued at $9.00 per warrant.
The warrants would raise and additional $103,000,000 in cash for SVI.
As for the private placement as found in the 8-K paragraph 4.9 exhibit 10.2...no one has shares and will not get shares until 60 days after "the closing" of the merger. Therefore, selling is not permitted period by PP shareholders until they receive their shares.
The Merger Agreement also provides that if Jamba Juice terminates the Merger Agreement either because the board of directors of Jamba Juice recommends a superior Acquisition Proposal (as such term is defined in the Merger Agreement), the stockholders of Jamba Juice vote against the merger or the stockholders of Jamba Juice do not approve the merger by April 30, 2006, and within six months after the date of such termination, Jamba Juice either enters into a definitive agreement to consummate, or consummates any of the following transactions (whether in a single transaction or series of transactions) (i) a sale by Jamba Juice of all or substantially all of its assets or (ii) a sale of stock, merger, reorganization or other transaction that results in transfer of ownership of more than fifty percent of the capital stock of Jamba Juice outstanding on the date of termination of the merger agreement, then Jamba Juice shall promptly pay to SVI a fee in the amount of $10,000,000.
Jamba Juice Research - Click Here
Merger News on the Jamba Juice web site.
On March 10, 2006, Services Acquisition Corp. International ("SVI") issued a press release with respect to the execution of an Agreement and Plan of Merger ("Merger Agreement") with JJC Acquisition Company, a wholly-owned subsidiary of SVI and a California corporation, and Jamba Juice Company, a California corporation ("Jamba Juice") in connection with SVI's acquisition of Jamba Juice. In connection with the acquisition of Jamba Juice, SVI also entered into a Securities Purchase Agreement ("Purchase Agreement") and a Registration Rights Agreement ("Registration Agreement") with certain investors for a private placement financing in order to raise the proceeds necessary to provide a portion of the funds necessary to acquire Jamba Juice.
SVI is a company that was formed for the specific purpose of consummating a business combination. SVI raised net proceeds of approximately $127 million through its initial public offering consummated in July 2005 and has dedicated its time since the offering to seeking and evaluating business combination opportunities. The management of SVI includes former executives from organizations such as Blockbuster Entertainment Group, AutoNation and Boca Resorts.
Special purpose acquisition vehicles, known as SPACs, have started popping up as alternative financing vehicles in the public sector. SPACs are companies that have no operations but that go public with the intention of acquiring a company with the proceeds of an initial public offering. Large institutional investors, such as hedge funds, usually buy shares of SPACs.
The IPO market has been up and down and has not been very robust, so SPACs become a fairly safe haven in which institutional investors can invest and enjoy the liquidity of the public markets, which is what hedge funds like to do.
Of the funds raised by SVI in early July 2005, $7.35 per share was put into a trust account and filings specify that if they don't buy a company then the money is returned in 2007.
So, there sits $127,000,000 in trust.
The $127,000,000 + $231,000,000 raised in a private placement with institutional investors is what they will have at the close of the Jamba Juice merger.
The balance of money not used in the merger will remain in the company.
Before the merger can go through SVI must file a proxy with the SEC.
SVI cannot have more than 20% of their shareholders reject the merger by proxy vote and they will also need 51% of their shareholders to accept the merger.
As for the warrants. They are exerciseable into the common for 1 share of common stock of SVI at $6.00 and expire on 6/28/09.
The warrants can be called for conversion if the stock trades at $11.50 or higher for 20 out of 30 days. You will have a choice at that point in exercising the warrants to buy the stock at $6.00 or sell the warrants in the open market at the trading price and let someone else convert the warrants for shares. At parity, if the stock is at $11.50 then the warrants should trade at ($11.50 - $6.00) or $5.50 per warrant. If the stock is at $15.00 the warrants would be valued at $9.00 per warrant.
The warrants would raise and additional $103,000,000 in cash for SVI.
As for the private placement as found in the 8-K paragraph 4.9 exhibit 10.2...no one has shares and will not get shares until 60 days after "the closing" of the merger. Therefore, selling is not permitted period by PP shareholders until they receive their shares.
The Merger Agreement also provides that if Jamba Juice terminates the Merger Agreement either because the board of directors of Jamba Juice recommends a superior Acquisition Proposal (as such term is defined in the Merger Agreement), the stockholders of Jamba Juice vote against the merger or the stockholders of Jamba Juice do not approve the merger by April 30, 2006, and within six months after the date of such termination, Jamba Juice either enters into a definitive agreement to consummate, or consummates any of the following transactions (whether in a single transaction or series of transactions) (i) a sale by Jamba Juice of all or substantially all of its assets or (ii) a sale of stock, merger, reorganization or other transaction that results in transfer of ownership of more than fifty percent of the capital stock of Jamba Juice outstanding on the date of termination of the merger agreement, then Jamba Juice shall promptly pay to SVI a fee in the amount of $10,000,000.
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