New tariff road kills: Acacia, Lumentum and Oclaro

Acacia, Oclaro plunge after U.S. bans sales to China’s ZTE

Lumentum to acquire Oclaro for $1.8B. Stockwinners.com
Oclaro tumbles on tariffs

Shares of several optical networking component providers – including Acacia Communications (ACIA), Oclaro (OCLR) and Lumentum (LITE) – are sliding after the U.S. Department of Commerce reportedly banned U.S. companies from selling components to Chinese telecom equipment maker ZTE Corp. (ZTCOY).

Acacia Comms tumbles, Stockwinners.com
Acacia Comms tumbles, Stockwinners.com

Loop Capital analyst James Kisner previously has noted that China’s ZTE announced it was raising $2.1B to fund the development and deployment of 5G wireless networks, which he read as a positive sign for optical component vendors. Oclaro (OCLR) and Acacia Communications (ACIA) have notable exposure to ZTE, Kisner pointed out, adding that he expected most optical component makers to benefit from 5G deployment in China.

In Monday’s trading following the news of the ZTE sales ban, Acacia shares have fallen over 18%, Oclaro has dropped 7.5% and Lumentum is down 8%.


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Elliott Management discloses 10.3% stake in Commvault

Elliott says intends to nominate four candidates to Commvault board

Elliott says intends to nominate four candidates to Commvault board. Stockwinners
Elliott  to nominate four candidates to Commvault board. Stockwinners

Elliott Management Corporation, which manages funds that collectively own 10.3% of common stock and economic equivalents of Commvault Systems (CVLT), released a letter announcing its intention to nominate four candidates to the Commvault Board.

In addition, the letter outlined a path forward for Commvault to create significant shareholder value through fundamental improvements in the company’s execution, operations, capital allocation and governance.

Elliott stated in the letter that it is looking forward to constructive engagement with the company and optimistic about developing a mutually supported path forward. Elliott’s board nominees include Martha Bejar, Wendy Lane, John McCormack and Chuck Morgan.

PRICE  ACTION

CVLT stock was last up over 9.6% to $62.70. At that price next resistance is at $64.60, the 52-week high.


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MuleSoft sold for $6.5 billion

MuleSoft to be acquired by Salesforce for $6.5B in cash and stock

MuleSoft sold for $6.5 billion. Stockwinners.com
MuleSoft sold for $6.5 billion.

Salesforce (CRM) and MuleSoft (MULE) have entered into a definitive agreement under which Salesforce will acquire MuleSoft for an enterprise value of approximately $6.5 billion.

Under the terms of the transaction, the MuleSoft acquisition consideration will be composed of $36.00 in cash and 0.0711 shares of Salesforce common stock per MuleSoft Class A and Class B common share, which represents a per share price for MuleSoft common shares of $44.89 based on the closing price of Salesforce common stock on March 19, 2018.

The per share price represents a 36% premium over MuleSoft’s closing share price on March 19, 2018.

Under the terms of the transaction, Salesforce will commence an exchange offer to acquire all of the outstanding shares of MuleSoft.

The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2019, ending July 31, 2018, subject to the satisfaction of customary closing conditions, including the tender by MuleSoft stockholders of shares representing a majority of the MuleSoft common stock voting power, on a one-vote per share basis, and the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.


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Lumentum to acquire Oclaro for $1.8B

Lumentum to acquire Oclaro for $1.8B in cash and stock 

Lumentum to acquire Oclaro for $1.8B. Stockwinners.com
Lumentum Holdings (LITE) and Oclaro (OCLR) announced that the two companies have signed a definitive agreement, unanimously approved by the boards of both companies, pursuant to which Lumentum will acquire all of the outstanding common stock of Oclaro. For each share of Oclaro stock held, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock, subject to the terms of the definitive agreement.

 

The transaction values Oclaro at $9.99 per share or approximately $1.8B in equity value, based on the closing price of Lumentum’s stock on March 9, of $68.98.

 

The transaction value represents a premium of 27% to Oclaro’s closing price on March 9 and a premium of 40% to Oclaro’s 30 day average closing price.

 

Oclaro stockholders are expected to own approximately 16% of the combined company at closing.

 

The transaction is expected to generate more than $60M of annual run-rate synergies within 12 to 24 months of the closing and be immediately accretive to non-GAAP earnings per share.

 

Lumentum intends to fund the cash consideration with a combination of cash on hand from the combined companies’ balance sheets and $550M in debt financing. The transaction is expected to close in the second half of calendar 2018, subject to approval by Oclaro’s stockholders, antitrust regulatory approval in the U.S. and China, and other customary closing conditions.

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Asia Pacific Wire and Cable is in play

Lonsin Capital submits indication of interest to acquire majority of APWC

Lonsin Capital submits indication of interest to acquire majority of APWC. Stockwinners.com
Lonsin Capital submits indication of interest to acquire majority of APWC

LONSIN Capital Limited, together with its affiliates, representing over 5% of the shares outstanding of Asia Pacific Wire and Cable (APWC) on February 23, 2018 wrote to the Board of Directors of the Company and to the Board of Directors of the main Shareholder Pacific Electric Wire and Cable Co. the intention of interest to acquire a majority of APWC US at $4.00 per share.

The proposal would represent a 62% premium to February 22, 2018 ‘s close of $2.475 and a 47% premium to the five-year average closing price on NASDAQ.

LONSIN said, “LONSIN has expressed concern to the management, both orally and in writing, concerning the failure of the Company to take sufficient action to enhance shareholder value and to include an additional independent director on the Company’s board of directors over time.

On May 18, 2016 LONSIN wrote a requisitioned, open letter to the Board of Directors of APWC asking the Board to consider a range of measures that could help deliver enhanced shareholder value without much cost to the Company.

The Board responded by stating that they ‘took very seriously concerns about shareholder value.’…In light of the underwhelming track record of the incumbent Board and Management of APWC over the short, medium and longer term, LONSIN believes that the acquisition of the majority stake would bring ‘fresh impetus’ to APWC’s assets and ‘swiftly deliver enhanced value for all shareholders.'”

A response received from the Board of PEWC’s US legal counsel, Michael Hagan, on February 27, 2018 states that the “LONSIN letter has been circulated to the board for their consideration.”

The response goes on to state that “a substantive response to the LONSIN offer” will be issued in due course but it is unlikely to be before the March 8, 2018 owing to existing commitments of the directors.

APWC closed at $2.50.


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Callidus Software sold for $2.4 billion

SAP to acquire Callidus Software for $36 per share

SAP to acquire Callidus Software for $36 per share. Stockwinners.com
SAP to acquire Callidus Software for $36 per share

SAP SE (SAP) and Callidus Software (CALD) announced that SAP America, Inc. has entered into an agreement to acquire CallidusCloud.

The CallidusCloud board of directors has unanimously approved the transaction. The per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud’s 90-day volume weighted average price per share.

The per share price represents an enterprise value of approximately $2.4B. SAP has elected to fund the transaction with existing cash balances and an acquisition term loan.

The transaction is expected to close in Q2, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.

The transaction is expected to be essentially neutral to SAP’s non-IFRS EPS for FY18 and accretive to SAP’s non-IFRS EPS for FY19.

Upon completion of the transaction, SAP expects to consolidate all CallidusCloud product assets within SAP Hybris solutions as part of SAP’s Cloud Business Group.

The existing management team will continue to lead CallidusCloud. The SAP Cloud Platform is to be used for the technical integration of CallidusCloud solutions.


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Blackhawk Network sold for $3.5 billion

Blackhawk to be acquired by Silver Lake, P2 Capital Partners for $45.25 a share

 

Blackhawk Network sold for $3.5 billion. Stockwinners.com
Blackhawk Network sold for $3.5 billion

Blackhawk Network (HAWK) announced that Silver Lake, the global leader in technology investing, and P2 Capital Partners have agreed to acquire Blackhawk in an all-cash transaction for a total consideration of approximately $3.5 billion, which includes Blackhawk’s debt.

Under the terms of the agreement, Blackhawk stockholders will receive $45.25 per share in cash upon closing of the transaction, representing a premium of 24.0% over Blackhawk’s closing share price of $36.50 on January 12, 2018 and a premium of 29.3% over the average closing share price during the 90 calendar days ended January 12, 2018.

Blackhawk operates a leading physical and digital gift card and prepaid payments network with global scale, connecting more than 1,000 brands to over 244,000 retail distribution locations and online channels.

Upon completion of the transaction Blackhawk will operate as a private company under the leadership of the current management team.

Blackhawk’s Board of Directors has unanimously approved the definitive merger agreement and recommends that stockholders vote in favor of the transaction.

The definitive agreement has fully committed debt and equity financing, including an approximately $1.7 billion equity commitment from Silver Lake.

P2 Capital Partners, which beneficially owns approximately 5.4% of Blackhawk’s outstanding common stock, has committed to vote in favor of the proposed transaction.


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Worldwide IT spending to reach $3.7T in 2018

Gartner says worldwide IT spending to reach $3.7T in 2018 

worldwide IT spending to reach $3.7T in 2018. Stockwinners.com
Worldwide IT spending to reach $3.7T in 2018

Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 4.5 percent from 2017, according to the latest forecast by Gartner, Inc.  (IT)

“Global IT spending growth began to turn around in 2017, with continued growth expected over the next few years. However, uncertainty looms as organizations consider the potential impacts of Brexit, currency fluctuations, and a possible global recession,” said John-David Lovelock, research vice president at Gartner.

“Despite this uncertainty, businesses will continue to invest in IT as they anticipate revenue growth, but their spending patterns will shift.

Projects in digital business, blockchain, Internet of Things, and progression from big data to algorithms to machine learning to artificial intelligence (AI) will continue to be main drivers of growth.”

The devices segment is expected to grow 5.6 percent in 2018. In 2017, the devices segment experienced growth for the first time in two years with an increase of 5.7 percent.

End-user spending on mobile phones is expected to increase marginally as average selling prices continue to creep upward even as unit sales are forecast to be lower.

PC growth is expected to be flat in 2018 even as continued Windows 10 migration is expected to drive positive growth in the business market in China, Latin America and Eastern Europe.

The impact of the iPhone 8 and iPhone X was minimal in 2017, as expected. However, iOS shipments are expected to grow 9.1 percent in 2018.


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Barron’s is bullish on Pfizer, Amgen and FAANG stocks

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue mentions several names: 

 

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Stockwinners offers Barron’s review of stocks to buy, stocks to watch

BULLISH    MENTIONS:

FAANG stocks still have room to run – The FAANGs – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google’s parent Alphabet (GOOG; GOOGL) – “took it on the chin” from critics and investors this past week but despite any woes, it is not time to dump them just yet, Ben Levisohn writes in this week’s edition of Barron’s. While concerns could limit gains in the short term, other factors suggest they have more room to run, he adds.

 Franklin may be ‘a bargain’ given potential return of cash – With the new tax law, Franklin Resources is likely to repatriate a significant amount of that cash and may distribute a chunk of it to shareholders, Andrew Bary writes in this week’s edition of Barron’s. Cash represents some 42% of Franklin’s current share price of $44, and its real estate could be worth another $2-$3 a share, he adds.

 Pfizer, Amgen among ‘good bets’ in pharma/biotech – Pfizer (PFE), Amgen (AMGN), AbbVie (ABBV), Elli Lilly (LLY), Bristol-Myers Squibb (BMY) and Johnson & Johnson (JNJ) have strong prospects, promising product pipelines, and good dividends that should keep growing, Lawrence Strauss writes in this week’s edition of Barron’s.

Under hostile takeover, Qualcomm tries offense – Qualcomm (QCOM), which is under a hostile takeover by Broadcom (AVGO), announced new radio frequency business, signaling a greater will to fight back and even go to the offense, Tiernan Ray writes in this week’s edition of Barron’s. Qualcomm’s new business could put pressure on Broadcom and, at the very least, may suggest the latter will have to raise its bid if it hopes to succeed, he adds.

Vivendi music holdings could be worth over $40B – The music business is headed for a growth spurt, as more listeners sign up subscription services such as Spotify, Jack Hough writes in this weekend’s edition of Barron’s. That is good news for rights owners like Vivendi, he adds. With a hand in music, TV and video games, Vivendi (VIVHY) is valued at $37B, but its music holdings alone could be worth more than $40B, thanks to streaming, the report notes.

BEARISH  MENTIONS

Still a long road ahead for self-driving vehicles – Dozens of companies presented driverless technology at the annual Consumer Electronics Show, Jon Swartz writes in this week’s edition of Barron’s. But while optimism about the growth of the market comes as consumers appear to become more comfortable with self-driving “robo-taxis,” the technology has not quite arrived, he notes, adding that autonomous cars are pricey and with drivers ready to take the wheel as a safety buffer. Among the players of the crowded road to the self-driving future are Alphabet (GOOG; GOOGL), Tesla (TSLA), BMW (BMWYY), Ford (F), Toyota Motor (TM), General Motors (GM), and Volkswagen (VLKAY), the report notes.


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Barron’s is bullish on Gold and FedEx, bearish on Caterpillar

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue mentions several names: 

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Stockwinners offers Barron’s review of stocks to buy, stocks to watch

BULLISH  MENTIONS:

FedEx EPS (FDX) growth should more than triple next year – U.S. postal rates look likely to rise, pinching Amazon (AMZN) and benefiting FedEx and UPS (UPS), Jack Hough writes in this week’s edition of Barron’s. While for now UPS enjoys higher profit margins, investors should favor FedEx as years-long investment in automating and expanding its hubs has given the company a speed and efficiency advantage over the former, he adds. Earnings per share growth for FedEx should more than triple next year as tax cuts kick in, the report notes.

Deal makers now ‘on the clock.’  – Deal makers may be on the clock, especially if one believes that the bull market is in its waning stages and the Federal Reserve is serious about interest rate hikes, Alex Eule writes in this week’s edition of Barron’s. 2018 merger speculation already kicked off in a big way, with headlines that Amazon (AMZN) could buy Target (TGT) and Apple could acquire Netflix (NFLX), he notes, adding that M&A may be necessary to grow and even to survive.

Valero, Home Depot among companies expected to raise dividend – Charles Schwab (SCHW), Home Depot (HD), Valero Energy (VLO), NextEra Energy (NEE), Allstate (ALL) and Cisco Systems (CSCO) are among the large companies expected to announce healthy dividend increases soon, Lawrence Strauss writes in this week’s edition of Barron’s. These projected boosts come amid a solid outlook for dividend growth in the U.S. and globally, he adds.

Intel not to be blamed for failures of computer security – Intel (INTC) came under fire for the revelation that its chips were vulnerable, but the nature of technology and how the industry approaches computer security are the real problem, not Intel chips, Tiernan Ray writes in this week’s edition of Barron’s. There may be things Intel can do, and in fact AMD (AMD), whose chips run the same software, said its products are less vulnerable than Intel’s, he notes, but difference here are just relative as hackers’ inventiveness will continue.

Kohl’s making right moves to grow earnings. – Until recently, Kohl’s (KSS) was largely written off as a casualty of Amazon’s (AMZN) domination of the retail sector, but the stock has become one of the hottest plays in retail as investors increasingly believe that the e-Commerce giant could acquire the company, Steven Sears writes in this week’s edition of Barron’s. Even without Amazon, Kohl’s seems to be making the right moves to grow earnings, he adds.

Gold rally may be ‘just the start.’  – Gold’s recent rally could be just the start, and investors betting on a new bull market in gold can buy physical gold, mining stocks or funds that track the metal and mining shares, with junior miners typically outperforming big-caps in a gold bull market, John Kimelman writes in this week’s edition of Barron’s. Publicly traded companies in the sector include Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG) and Agnico Eagle (AEM).

BEARISH  MENTIONS:

Bank earnings could ‘be messy.’ – The backdrop for banks could not be much better but earnings season is about to begin – with JPMorgan (JPM), Wells Fargo (WFC) and PNC Financial (PNC) expected to report on Friday – and it could “be messy,” Ben Levisohn writes in this week’s edition of Barron’s. While tax reform should be a boon for banks, it will also produce one-time charges and gains that will need to be accounted for, he adds.

Time to sell Caterpillar – In a follow-up story, Barron’s says that with Caterpillar (CAT) soaring, it is time to sell. Investors should not expect the stock to move quickly from here, as cyclical companies like Caterpillar tend to trade at high multiples of earnings at the bottom of the cycle and low multiples at the top, it adds.


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Apple lower on soft iPhone X demand

Apple slides as Taiwanese report raises fears about iPhone X

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Apple lower on weak iPhone X demand

Apple (AAPL) shares are weaker as U.S. investors return from the long holiday weekend after a Taiwanese newspaper report said the tech giant is trimming its first-quarter sales forecast, according to Bloomberg.

Adding to the caution are analysts following suit, reportedly due to worries about demand for the high-end iPhone X.

ANALYSTS, APPLE SAID TO TRIM FORECASTS

Taiwanese newspaper Economic Daily News quoted unidentified supply chain officials as having said that Apple is lowering its first-quarter iPhone sales forecast to 30 million units from 50 million, according to Bloomberg.

It also said Hon Hai Precision Industry Co.’s main iPhone X manufacturing hub in Zhengzhou, China, stopped recruiting workers. The company also known as Foxconn is the sole iPhone X assembler, and also makes the handsets in Shenzhen and Chengdu.

An Apple representative declined to comment on production decisions, the report noted.

Additionally, Bloomberg noted that analysts at New York-based JL Warren Capital and China’s Sinolink Securities have each lowered iPhone X shipment projections for the first quarter of next year.

Apple has been counting on a redesigned 10th anniversary iPhone to boost shipments as its market value advances toward $1 trillion. The Cupertino, California-based company is facing new challenges from Samsung Electronics Co., which is quickly recovering from the Galaxy Note 7’s recall after fires. In the meantime, Chinese brands such as Huawei, Oppo and Xiaomi are also luring away potential customers in China and other emerging markets such as India.

SUPPLIERS TO WATCH

Suppliers to Apple that may be volatile following Bloomberg’s cautious report regarding signs of slack iPhone X demand include Skyworks (SWKS), Cirrus Logic (CRUS), Broadcom (AVGO), Qorvo (QRVO), Qualcomm (QCOM), STMicroelectronics (STM), Analog Devices (ADI), Knowles (KN) and Micron (MU).

PRICE ACTION

In pre-market trading, Apple shares are down $4.73, or 2.7%, to $170.28.


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Toshiba and Western Digital near a deal

Toshiba, Western Digital reach agreement in principle on chip unit

Western Digital and Toshiba reach an agreement. See Stockwinners.com
Western Digital and Toshiba reach an agreement.

Toshiba (TOSBF) and Western Digital (WDC) have reached an agreement in principle on the sale of Toshiba’s chip unit sale, Reuters reports, citing sources familiar with discussions.

The two sides intend to have a final deal in place next week.

Under the settlement, Western Digital will drop its arbitration claims that allowed it to block the sale of the chip unit to consortium led by Bain Capital. In exchange, Toshiba would grant Western Digital investment rights in a new advanced memory chip production line that will start next year.

The board of the embattled Japanese conglomerate approved a framework for a settlement on Wednesday, one of the sources said.

The potential for Western Digital – Toshiba’s partner in its main semiconductor plant and jilted suitor in the auction – to block a deal has been seen as the main obstacle to the planned sale of the unit to a Bain Capital-led consortium.

The settlement under discussion calls for Western Digital to drop arbitration claims seeking to stop the sale in exchange for Toshiba allowing it to invest in a new production line for advanced flash memory chips that is slated to start next year, two sources said.

Toshiba was forced to put the unit – the world’s no. 2 producer of NAND chips – on the block to cover billions of dollars in liabilities arising from its now bankrupt U.S. nuclear power unit Westinghouse.

The deal with the Bain-led consortium will, however, see it reinvest in the unit and together with Hoya Corp, a maker of parts for chip devices, Japanese firms will hold more than 50 percent of the business – an important wish of the Japanese government.

As part of the planned settlement, Toshiba and Western Digital would extend existing agreements for their chip joint ventures in Yokkaichi, central Japan, one of the sources said. The current agreements are set to start expiring from 2021.

Western Digital, one of world’s leading makers of hard disk drives, paid some $16 billion last year to acquire SanDisk, Toshiba’s chip joint venture partner since 2000.

With data storage key to most next-generation technologies from artificial intelligence and autonomous driving to the Internet of Things, NAND chips have only grown in importance and Western Digital has been desperate to keep the business out of the hands of rival chipmakers.

WDC closed at $78.35.


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Barracuda Networks sold for $1.6 billion

Barracuda agrees to be acquired by Thoma Bravo for $27.55 per share in cash

Barracuda Networks (CUDA) announced that it has entered into an agreement to be acquired by private equity investment firm Thoma Bravo in an all-cash transaction valued at $1.6B.

Barracuda shareholders of record will receive $27.55 in cash for each share of Barracuda common stock they hold.

This price exceeds Barracuda’s 52-week high and represents a premium of 22.5% to the company’s 10-day average stock price prior to Nov. 27, the company noted.

Upon the close of the transaction, Barracuda will operate as a privately-held company with a continued focus on email security and management, network and application security, and data protection solutions that can be deployed in cloud and hybrid environments.

The proposed transaction, which has been unanimously approved by Barracuda’s Board of Directors, is expected to close before Barracuda’s fiscal year end of Feb. 28, 2018, and is subject to approval by Barracuda’s shareholders and regulatory authorities, and the satisfaction of other customary closing conditions.

CUDA closed at $23.69.


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Barron’s is bullish on Verizon

Barron’s, the weekly publication owned by the Wall Street Journal, in its latest issue mentions several names: 

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BULLISH  MENTIONS

 

Rising sales may lift Mondelez (MDLZ)- There is reason to hope that growth is returning to Mondelez, with sales perking up in its latest quarter, especially in the developing markets, Bill Alpert writes in this week’s edition of Barron’s. If the company and its new CEO can deliver sales growth, many analysts think Mondelez’s stock could rise to $50 or more, the report notes.

Wheat prices may rise amid cold December – A “brutal cold snap” in December is likely and could lift winter wheat prices higher than $5 a bushel, a rally that would aid the farm economy that has been hurt by steadily falling wheat prices since mid-2012, Simon Constable writes in this week’s edition of Barron’s. Among companies that benefit from higher crop prices are fertilizer makers Mosaic (MOS) and Agrium (AGU), the report notes.

Infrastructure stocks should rise if Congress passes legislation – It may be easy to be skeptical about President Donald Trump’s ambitious effort to rebuild aging bridges, roads and other elements of the country’s infrastructures, but there is reason for hope, John Kimelman writes in this week’s edition of Barron’s. For investors in a group of about a dozen infrastructure companies such as Vulcan Materials (VMC) and Fluor (FLR), legislation cannot be considered soon enough, he contends. Other companies that may get meaningful boosts include Martin Marietta Materials (MLM), Aecom (ACM), Jacobs Engineering Group (JEC), Granite Construction (GVA), Eagle Materials (EXP), and U.S. Concrete (USCR), Barron’s notes, adding that even equipment companies like Caterpillar (CAT) could benefit.

Tencent still has upside – While Tencent (TCEHY) is up 125% this year, the stock still has lots of upside, Assif Shameen writes in this week’s edition of Barron’s.

Verizon could return 20% over the next year – A long price war in wireless is easing, which has left Verizon’s (VZ) shares looking cheap, Jack Hough writes in this week’s edition of Barron’s. They could return 20%, including a dividend yield of 5%, over the next year, he adds.

BEARISH  MENTIONS

Challenges at HP Enterprise loom large– In a follow-up story, Barron’s says that as HP Enterprise (HPE) CEO Meg Whitman prepares to retire in February, the company no longer “has to shut the lights at night to save money.” However, plenty of challenges remain, notwithstanding Whitman’s moves to reconfigure the business, the report notes. The challenges at HP Enterprise loom large, as cloud-computing leaders Amazon (AMZN), Microsoft (MSFT) and Alphabet’s (GOOGL; GOOG) increasingly buy less HPE gear because they are building their own, the report notes.


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Rockwell Automation rejects Emerson proposal

Rockwell Automation board unanimously rejects Emerson proposal

Rockwell receives $29B takeover offer. See Stockwinners.com for details

Rockwell Automation (ROK) announced that its Board of Directors has unanimously rejected Emerson’s (EMR) unsolicited proposal to acquire Rockwell Automation received on November 16.

The company said, “The Rockwell Automation Board of Directors, in consultation with its financial and legal advisors, has thoroughly considered Emerson’s November 16 proposal and has unanimously determined that it is not in the best interests of Rockwell Automation and its shareowners.

Emerson’s proposal undervalues Rockwell Automation and its prospects for continued growth and value creation, presents significant long-term risk for Rockwell Automation’s shareowners, and would create a company that is not well-positioned to compete successfully in the evolving market.

The Board believes that continuing to execute Rockwell Automation’s successful strategy, which is generating extraordinary returns for the company’s shareowners, will create greater long-term value than pursuing Emerson’s proposal.”

RELATED BLOGS

ROK closed at $193.02. EMR closed at $60.35.


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