Jim Cramer Blog

Hewlett-Packard Co. said Monday it has agreed to acquire two companies: Opsware Inc. in a deal valued at $1.65 billion and Neoware Inc. for $214 million.
Palo Alto-based HP (NYSE HPQ) said it will pay $14.25 for each share of Sunnyvale-based Opsware (NASDAQ:OPSW - News), a 39 percent premium on Friday's closing price of $10.28.
HP is offering $16.25 a share for King of Prussia, Pa.-based Neoware (NASDAQ:NWRE - News), about 7 percent above its Friday closing price of $15.24.
Neoware's software is used to centralize the management of desktop computers.
Opsware software helps firms automate corporate-data centers. In its mosr recently completed fiscal year ended Jan. 31, it posted a net loss of $16.1 million on revenue of $101.7 million.
Opsware was co-founded as Loudcloud by Chairman Marc Andreessen, the co-founder of Netscape Communications Corp. and former chief technology officer of America Online Inc., and Chief Executive Benjamin Horowitz, who is expected to join HP management, in 1999.
Both deals are expected to close by Oct. 31.
Published July 23, 2007 by the Silicon Valley / San Jose Business Journal

Labels: Hewlett-Packard Co., HPQ, Neoware, NWRE, OPSW, Opsware

The start of the trading week got under way in the right direction, as the major market indices finished the session higher. The biggest gainer among the averages was the Dow, which rose 92 points. The Nasdaq rose 3 points on the session, while the S&P gained 7.5. Bulls were in the buying mood out of the gate as strong corporate earnings coupled with increased dealmaking led to bargain hunters picking up stocks after Friday's losses. In the energy sector, prices declined across the board, with crude finishing the day lower by -90 cents to close at $74.89 a barrel.
In earnings news, pharmaceutical giant Merck (NYSE: MRK - News) said net income rose to $1.68 billion, or 77 cents a share, compared to $1.5 billion, or 69 cents a share last year. Excluding restructuring charges, EPS would have been 82 cents. Sales rose 8% to $6.11 billion. The company also said it put away an additional $210 million into its reserve to help fight off Vioxx claims. In addition, it raised its full-year EPS guidance for 2007 to $2.80-2.95, or $3.00-3.10 excluding charges. Shares surged 6.9%
Elsewhere, oil services giant Halliburton (NYSE: HAL - News) rose 3.2% on the day after the company reported earnings from continuing operations of $595 million, or 63 cents a share. On a comparable basis, it earned $498 million, or 47 cents a share, a year earlier. Revenue rose to $3.74 billion from $3.12 billion the same period a year ago. The company said its 19% rise in earnings from continuing operations was fueled by international contracts.
M&A is still alive and well on Wall Street as a plethora of deals were announced. Drilling giant Transocean (NYSE: RIG - News) agreed to buy rival GlobalSantaFe (NYSE: GSF - News) for nearly $18 billion. Under the terms of the deal, Transocean shareholders will receive $33.03 in cash and 0.6996 shares of the combined company. GlobalSantaFe shareholders will receive $22.46 in cash and 0.4757 shares of the new combined company. The cash and stock deal will create a behemoth with a combined $53 billion in enterprise value.
Also in the buyout space, Cerberus agreed to buy United Rentals (NYSE: URI - News) for $34.50 a share. The total deal amount, which includes $2.6 billion worth of debt, is $6.6 billion. In the tech space, Hewlett-Packard (NYSE: HPQ - News) agreed to buy software firm Opsware (Nasdaq: OPSW - News) for $14.25 a share, in an all cash tender offer. The deal represents a 38% premium to where the shares closed on Friday.
By the BullMarket.com Staff

Labels: GSF, HAL, HPQ, MRK, OPSW, RIG, URI

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
ADC Telecommunications (NasdaqGS:ADCT - News) beat earnings on Monday after the close, announcing $0.08 EPS over an expected $0.06 EPS. ADCT's PowerRating is 7.
Esterline Technologies (NYSE:ESL - News) beat expectations after the bell Monday with $0.49 EPS over a consensus of $0.47 EPS. ESL's PowerRating is 6.
Iconix Brand (NasdaqGM:ICON - News) reports earnings on Tuesday before the market opens; watch for $0.18 EPS. ICON's PowerRating is 7.
Accuride (NYSE:ACW - News) is expected to announce $0.29 EPS before the bell on Tuesday. ACW's PowerRating is 8.
When Opsware (NasdaqGM:OPSW - News) reports quarterly earnings on Tuesday morning, look for $0.03 EPS. OPSW's PowerRating is 5.
Analysts are watching for Volt Information Sciences (Nasdaq:VOLT - News) to report $0.02 EPS on Tuesday morning.
Chico's FAS (NYSE:CHS - News) reports quarterly earnings on Tuesday after the close, so watch for heightened price action and volume ahead of the bell. CHS's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: ACW, ADCT, CHS, ESL, Hot Stocks, ICON, OPSW, VOLT

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Dress Barn (NASDAQ:DBRN - News) beat earnings on Tuesday afternoon, announcing $0.40 EPS vs an expected $0.37 EPS. DBRN's PowerRating is 5.
Chico's (NYSE:CHS - News) matched earnings on Tuesday after the bell with $0.24 EPS. CHS's PowerRating is 6.
Restoration Hardware (NASDAQ:RSTO - News) beat earnings Tuesday after the close, with -$0.15 EPS vs a consensus of -$0.16 EPS. RSTO's PowerRating is 7.
DSW (NYSE:DSW - News) reports quarterly earnings on Wednesday before the close; look for $0.26 EPS. DSW's PowerRating is 7.
Opsware (NASDAQ:OPSW - News) announces earnings Wednesday morning, with analysts looking for $0 EPS. OPSW's PowerRating is 7.
Tiffany (NYSE:TIF - News) reports earnings on Wednesday before the bell; expect $0.16 EPS. TIF's PowerRating is 6.
Synopsys (NASDAQ:SNPS - News) reports earnings on Wednesday afternoon, so watch for action leading up to the announcement. SNPS's PowerRating is 7.
PowerRatings are courtesy of PowerRatings.net

Labels: CHS, DBRN, DSW, OPSW, RSTO, SNPS, TIF