Penny Stock Exposure » merger

Exelon’s net skids on merger costs, weaker margins

StockFrontRunners — Sat, 05 May 2012 03:33:11 +0000

Exelon Corp.’s EXC -0.75% first-quart earnings fell 70% as costs related to the electric and gas utility’s merger with Constellation Energy Group Inc. weighed on results and as margins weakened.

Exelon, the largest operator of nuclear plants in the U.S., completed its acquisition of Constellation in March. The merger, an all-stock deal valued at nearly $8 billion, allows Exelon to absorb Constellation’s nuclear fleet and large retail power business. However, the deal prompted Moody’s Investors Service to downgrade its investment-grade rating on Exelon by a notch, noting the companied company will likely see negative free cash flow for several years.

Exelon owns Illinois utility Commonwealth Edison, but its largest business is operating power plants across the U.S. an selling the electricity on the wholesale market. The recent plunge in U.S. natural gas prices has forced wholesale power prices lower, threatening Exelon’s bottom line.

President and Chief Executive Christopher Crane said that as expected, the latest results reflected unfavorable market conditions and mild weather.

Exelon reported a profit of $200 million, or 28 cents a share, down from $668 million, or $1.01 a share, a year earlier. Excluding mark-to-market adjustments, merger-related costs and other items, earnings fell to 85 cents a share from $1.17 a share. Revenue slipped 5.4% to $4.69 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of 81 cents a share on revenue of $7.67 billion.

Operating margin narrowed to 7.7% from 24.3%. Total operating expenses jumped 15%.

The company said the equivalent availability factor for its hydroelectric facilities fell to 96.6% from 97.8%.

Exelon’s generation business, which includes its nuclear operations, saw its earnings fall 66% to $168 million.

Shares closed at $38.82 Thursday and were inactive premarket.

SOURCE: http://www.marketwatch.com/story/exelons-net-skids-on-merger-costs-weaker-margins-2012-05-04

IceWEB, Inc. (OTC:IWEB) Bursts Out on Expected Revenue Increase

StockFrontRunners — Tue, 08 Mar 2011 20:02:05 +0000

Yesterday, IceWEB, Inc. (OTC:IWEB) announcement that it could grow its sales almost 30 times in the coming year through a merger agreement made its stock do what it could not do in the last months despite all the numerous promotions and positive announcements. IWEB gapped up on tremendous volume and no recent resistances for the share price were left unbroken.

IWEB closed the market at $0.25, 28.21% higher than the previous close and traded over 2.6 million shares for the day. Apart from the running stock promotions, the company’s registration statement for 26 million new shares of common stock got also declared effective by the SEC last month. In addition, IWEB filed its latest 10-Q report.

However, those were all events not considered that spectacular by traders, as it is questionable if the observed increase in the value of the stock last month would have happened without the paid promoters. Now, it looks like yesterday the event that could, according to many investors, justify the current market cap and provide future potential got finally revealed.

As promised on Friday afternoon, IceWEB announced a significant material event: the company has reached a definitive merger agreement with Promark Technology, Inc., a private distributor of data storage products and solutions. The press release sounds promising, but if the merger would actually change something for IWEB shareholders depends on the projected “immediate and dramatic improvement” in the company’s revenues, profits and market share resulting from the new agreement.

In the case of IceWEB, it is hard to speak about profits at this point, as it has been losing money in millions over the last three years. The company has also a working capital deficit to cover and debts exceeding the assets.

Moreover, it looks like it will not be possible for IceWEB to pay in cash its obligation under the agreement with its $256,000 available as of December 31, 2010. The corresponding SEC filing confirming the merger agreement reveals that pursuant to the terms of the transaction IceWEB will pay the selling shareholders total consideration of $10.78 million, for expected additional $100 million in revenues in the coming year.

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Solid Cash on the Table Pushing Your Money Into First Corp(OTC:FSTC)

StockFrontRunners — Mon, 07 Mar 2011 18:59:46 +0000

Close, but not quite there yet. A solid recommendation, a solid amount of cash and solid level of uncertainty – meet First Corp(OTC:FSTC) and its promotion. If you are not familiar with the name, don`t worry. It is unlikely that the thousands of other people who are reading the latest promotion are familiar with it either. This is what the $100k are for – to make you check it out and invest, because it is about to explode.

NW Tech Capital, Inc. (PINK:NWTT) Flies Up on Merger Finalization

StockFrontRunners — Mon, 17 Jan 2011 12:20:28 +0000

NW Tech Capital, Inc. (PINK:NWTT) has been flying up progressively over the past days. The stock hit spectacular gains during the past week and now the reason looks finally revealed.

Last Friday, NW Tech reported it has finalized a merger with the gold mining company Canada Incorporated. According to the announcement, “by merging with Canada Corp., NWTT is looking to enter into the Canadian mining segment and increase the company value for the shareholders”. Having heard the good news, the shares of NW Tech rose up by 25% and the traded volume exceeded 244 million shares for a day.

Apart from the heavy trade on Friday, NWTT has had a few earlier gains over the past week. Most probably they were due to the positive stock alerts that appeared on some promotional websites a while ago. Apparently, the alerts were strong enough to attract traders and to help NWTT grab the up move. However, the future remains yet uncertain.

Historical records show that apart from

Pace Oil and Gas Ltd. (PINK:MDOEF) Stock In Search Of Its Fair Value

StockFrontRunners — Fri, 30 Jul 2010 15:32:12 +0000

These days, investors are not reed bed about Pace Oil and Gas Ltd. (PINK:MDOEF) stock. Even today’s trading session started with a 2.40% price decline.

It seems that after the merger investors are looking for the fair value of the newly formed company and its stock.

During the last days of June, the completion of the merger of Midnight with Provident Energy Trust’s was announced. These two entities formed Pace Oil & Gas Ltd.

According to the company’s President and CEO, Pace Oil and Gas Ltd. “will role out as an exciting new growth oriented intermediate sized oil and gas company with a breadth of both light oil and resource type natural gas opportunities to expand and grow”.

The new Pace Oil and Gas Ltd., traded under the old symbol, entered the market with increasing volume and price decline after the merger. Last week, investors appreciated MDOEF stock upward direction.[BANNER]

Since Monday, MDOEF shares pulled back 4.72% on a volume lower than the average traded.

Maybe the information about the closed $220 million revolving term credit facility with a syndicate of banks, led by Canadian Imperial Bank of Commerce, and the changes resulting from the above mentioned merger, expound investor conservatism and uncertainty towards MDOEF stock.

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VizStar Inc (OTC:VIZS) Stock Makes Upward Charters On Promo Jets

StockFrontRunners — Thu, 24 Jun 2010 11:45:14 +0000

These days, Vizstar Inc (OTC:VIZS) stock makes charters on promo jets, supporting the implementation of the company’s strategy for fast growth in the field of the private aviation business.

Yesterday, VIZS stock closed the session at $0.63, growing 14.13%. The volume was significant for a company, traded on the OTC market under a new symbol and, as officially declared in March, having new business operations.

It seems, that the upward starting of VIZS stock has two dimensions. Price and volume were driven by the information about finalizing the merger with Celestial Jets, disclosed earlier this month. According to the merger agreement, Celestial Jets became a wholly-owned subsidiary of the Company.

As chart here shows, those developments were not the only factor, that rushed VIZS stock up. On the date of the 8 k filing concerning the merger agreement, VIZS had it’s second in row stock promotion. For a period of less than a month, the company collaborated with four promoters.

In stock alerts, VIZS shares are promoted like this: “Its Trading Levels Could be Set to Explode!”.

After the last press release of VIZS for the acquisition of Westchester-based private jet charter company, and stock alerts similar to the one presented here, maybe VIZS stock will actually explode.

As of today, the company has not done an official 8k filing about the material interest in 5 Star Jets.[BANNER]

Here the question also arises, how the deal will be financed, since according to the last financial reports, VIZS disposed at the end of this February of $5,914 in total assets and had almost the equal amount of liabilities. From the company’s assets, $5,044 represent the net of accumulated amortization of a website.

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Pinnacle Gas Resources, Inc. (NASDAQ:PINN) Gets Heavy Volume But Little Action

StockFrontRunners — Thu, 17 Jun 2010 15:26:17 +0000

Pinnacle Gas Resources, Inc. (NASDAQ:PINN) dropped shortly after presenting what looked like a breakout attempt. The stock remains price locked in the shadow of a pending merger.

The stock, trading under $1, was stalling to move since the first announcement of an upcoming acquisition. Nearly 4 months ago, Pinnacle said they expect to be acquired by a group of investors for a specified price of 34 cents per share.

The lockdown has now proved to be getting more elasticity as no further news on the merger are coming and investigations on behalf of shareholders have been in play. The price set forth by the merger proposal still remains one of the main obstacles for any attempt of breakout.[BANNER]

As this shadow remains upon Pinnacle, the rally has no future, in spite of heavy volume. Traders will not be willing to bet more money on the stock, even if the current price doesn’t reflect the company’s real value. In terms of what can be found on their balance sheet, the enterprise is worth at least $15 million versus the market cap of only $10 million.

Key to the actual break of lockdown will be the results of investigations and updates on merger intentions: either it passes or is cancelled. None of this can be predicted and involved parties just keep radio silence. The only thing certain, is that if it continues like this Pinnacle can get delisted from Nasdaq for not complying with the $1 minimum share price.

WTMK – Whitemark Homes, Inc – A Stock To Watch In April

StockFrontRunners — Wed, 07 Apr 2010 01:16:24 +0000

WTMK has reorganized and, with a pending merger just about finalized, looks ready to post gains this month.

Trunkbow International Holding reverse merges into Bay Peak 5 Acquisition Corp.

StockFrontRunners — Thu, 25 Feb 2010 21:05:37 +0000

Trunkbow International Holdings has executed a reverse merger into a shell company, Bay Peak 5 Acquisition Corp., controlled by Baypeak LLC. The company is currently non-trading and doesn’t have any history with the SEC. Details on the transaction are sparce as well.[BANNER]

Trunkbow currently provides electronic mobile payment solutions in China’s province of Shandong. Upon the merger, Trunkbow also exercised $5.6 million worth of warrants that came along with the shell acquisition.

Funds for the merger were raised by Merriman Curhan Ford (Nasdaq: MERR) with VeriFone Holdings (Nasdaq: PAY), the provider of electronic payment solutions, acting as the leading entity in the fund raising process. The company has invested $5 million into Trunkbow as announced on February 11, 2010. The $5 million investment guaranteed VeriFone an 8.6% stake in the company. Full proceeds raised from multiple sources totaled $22.5 million.

Trunkbow has an aggressive expansion strategy in place, planning to have their Near-Field Communications technology integrated in 125,000 mobile payment terminals in China over the coming three years. To achieve their goals, the company is seeking partnerships with multiple Chinese telecom carriers. Naturally VeriFone is the preferred supplier of payment system technology to Trunkbow.

Investors cannot yet trade Trunkbow’s shares but hopefully the company will go public soon. Operating in China’s mobile phone market, the company automatically possesses great potential and with the recent fund raising it makes one curious about their financial state.

KNOS – Expecting More Gains As The Week Progresses

StockFrontRunners — Wed, 24 Feb 2010 07:25:13 +0000

KNOS is a stock that has been under