Diamonds and Dogs
7/2/12OpenTable Inc. (OPEN)
OpenTable had no seats available today, down 9.33% at $40.81. Shares of the online reservation company plunged after Barclays Capital analyst, Mark May, downgraded the company. May downgraded his rating on the company to "Equal Weight" from "Overweight", saying that his quarterly checks suggest the company is still seeing softer reservations growth and that its addition of new restaurants has trended below his expectations. He has a $43 price target on the company's stock. Furthermore, May stated that the slowdown may be due to cyclical or restaurant industry trends and he remains bullish on the company's long-term growth outlook and its competitive position. Open Table's shares have fallen sharply from a peak almost a year ago of $90.89.
Brightpoint Inc. (CELL)
Brightpoint was shining today, up 66.54% at $9.01. The company saw its stock jump after news was released that Ingram Micro Inc. agreed to buy Brightpoint. Brightpoint, a leading distributor of wireless devices, accepted a deal for a cash consideration of $840.0 million. The purchase price, includes Brightpoint's $190.0 million debt burden, and equates to $9 per share; a 66% premium over last Friday's price. Brightpoint has tie-ups with heavyweights such as Research in Motion, HTC Corp, and Nokia Corp. It has also been winning deals from the likes of Metro PCS Communications and Sprint Nextel Corp. The company has sales operations in 75 countries, accumulating 25,000 customers and generating $5.2 billion in revenue (up 46.0% year over year) and earnings per share of 71 cents (up 65.0%) in 2011.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.