Facebook Ahead of Earnings!

Facebook in strong uptrend before the earnings report on Wednesday.

stockwinners.com analysis of facebook stock

The stock has been in a stable uptrend since breaking out in July 2013.

In April of this year, the shares broke out above the top of the bullish price channel that had been in place since July 2013.

The uptrend has accelerated in recent weeks moving price even further from the prior channel top.

The current point of intersection with the old channel top is at the $150 area. If the news is strongly positive, exceeding even the most current expectations, the breakout may extend.

The very top of the current price channel when projected forward in the near-term reaches the $168 area. Beyond that, a move to the $170-$175 area might be possible.

If the news doesn’t meet expectations, given the sentiment in the name a pullback could be quite large.

Initial support would be at the $156.50 area, which is the top of the consolidation range from May to early July of this year. Thereafter the $150 area would be next.

A move below $150 might seem like an extreme move, but would still leave price within the long-term channel. The low of the old long-term channel is at the $135-$134 area.

The consensus estimate on Facebook for Q2 revenue is to reach $9.17 billion. The consensus on adjusted earnings is $1.12 a share. Revenue from advertising is expected to come at $8.78 billion.

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State National Companies Sold for $919 Million

Markel to acquire State National for $21.00 per share in cash

Markel to acquire State National for $21.00 per share in cash. See Stockwinners.com Market Radar

Markel (MKL) and State National Companies (SNC) announced that they have entered into a definitive agreement under which Markel will acquire all of the outstanding shares of State National common stock for $21.00 per share in cash. The transaction has a total value of approximately $919M.

State National Companies, Inc. provides property and casualty insurance in the United States. It operates in two segments, Program Services and Lender Services.

The agreement, which has been unanimously approved by both companies’ board of directors, represents a 38% premium to State National’s 30-day volume-weighted average stock price as of May 18, 2017, the last trading day prior to published market speculation regarding a potential sale of State National, and a premium of approximately 7% to State National’s closing stock price on July 25, 2017.

The transaction, which is subject to the approval of a majority of State National shareholders, approvals by relevant state insurance regulators and other customary closing conditions, is expected to close in the fourth quarter of 2017.

The transaction is not subject to any financing condition, and #Markel plans to finance the transaction using cash balances on hand.

Members of the #Ledbetter family have entered into a voting agreement with Markel in support of the merger. CF SNC Investors LP has entered into a separate similar voting agreement with Markel.

As a result of these voting agreements, approximately 37% of State National’s common stock is committed to vote in favor of the transaction.

Upon completion of the transaction, State National will operate as a separate business unit. The management team, led by Terry Ledbetter, State National’s current Chairman and CEO will remain in place and will continue to be based in Bedford, Texas.

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Guidance Software Sold for $240 Million

Guidance Software to be acquired by OpenText for $7.10 per share

Guidance Software sold for $240 Million. See Stockwinners.com Market Radar

Guidance Software (GUID) has entered into a definitive agreement to be acquired by OpenText (OTEX).

Under the terms of the merger agreement, OpenText will commence a tender offer to acquire all outstanding shares of Guidance Software common stock in a transaction valued at approximately $240 million.

Subject to the terms and conditions of the offer, Guidance stockholders will receive $7.10 per share in cash for each outstanding share of common stock held.

“Our board of directors has carefully evaluated the merger proposal by OpenText and believes it represents the best value reasonably attainable for our stockholders and will benefit our customers and employees,” said Patrick Dennis, Guidance president and CEO.

“We believe this all-cash transaction offers our stockholders liquidity and certainty of value. Joining with OpenText is a new beginning for Guidance products, customers and employees.”

The merger has been unanimously approved by the Board of Directors of Guidance and is expected to close in the third quarter of calendar 2017.

Consummation of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals and the tender of a majority of the shares of Guidance Software common stock in the offer.

Morgan Stanley and Atlas Technology Group are serving as financial advisors and Latham & Watkins is acting as legal counsel to Guidance.

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