The Options Capitalist – SII March 37 Calls Exit Alert
Feb 22, 2010 Options, Trading Idea
The Smith International calls we entered into on Friday, are up about 125%. They are now bidding $4.10, but with the wide spread between bid and ask, we are up 95%. Exit trade.
Navivest
Tags: call options, navivest, options capitalist, smith international
47% One Day Gain On Smith International Options
Feb 22, 2010 Mergers & Acquisition, Trading Idea
On Friday, we issued a recommendation to subscribers of our Options Capitalist trading advisory service, that they buy the Smith International (SII) March 2010 37 calls, as there was a possibility a bid could be made for the company this week, by Schlumberger (SLB). We also actually posted that trade on the Navivest blog for our readers.
On Sunday, Schlumberger did announce a $45.84 per share bid for the company and the March 37 calls, which we purchased at $2.10, are now bidding $3.10, a nice 47% gain in just one trading day!
We offer compelling options trading ideas such as these twice a week via The Options Capitalist. For more info on the service, visit our site at http://www.navivest.com
Tags: acquisition, merger, schlumberger, smith international
Schlumberger and Smith International Announce Merger
Feb 21, 2010 Mergers & Acquisition
Oilfield services companies Schlumberger (SLB) and Smith International (SII), on Sunday February 21, announced that the boards of both companies have “unanimously approved a definitive merger agreement in which the companies would combine in a stock-for-stock transaction.”
Shareholders of Smith International will receive 0.6966 shares of Schlumberger in exchange for each Smith share. Based on the closing stock prices of Schlumberger on Friday, February 18, 2010, this values the deal at $45.84 for each Smith International. Smith International has 247.4 million shares outstanding, putting the total value of the deal at $11.1 billion.
Upon completion of the deal, Smith International’s shareholders will own 12.8% of Schlumberger’s outstanding shares of common stock.
Tags: merger, schlumberger, smith international
Trade Advisory – 02/19/20
Feb 19, 2010 Mergers & Acquisition, Options, Stocks, Trading Idea
The following is from the latest issue of The Options Capitalist, our subscription based trading advisory service for options traders.
The Options Capitalist
Smith International
02/19/2010
Shares of oilfield services company Smith International (SII), are up $4.53 on a report in the Wall Street Journal, that the company is in advanced talks with Schlumberger (SLB)on being acquired, with an announcement possibly coming next week.
The move in the stock today represents a better than 13% move, but we are hoping that if a deal is announced, Schlumberger’s offer will be higher than the current $37.88 price of the stock.
On December 14, 2009, Exxon Mobil (XOM) announced a $41 billion offer for XTO Energy (XTO). Although this was a slightly different field, XTO is an energy producer, the premium was 25% and hopefully an offer from SLB would be at least similar.
Buy the Smith International (SII) March 37 calls. The current price is $1.95 by $2.10, indicating a $0.15 spread, which will cost us a whopping $15 for each contract plus commission. However, if an offer for the company comes in higher than the current price of the stock, that would put us in a very nice position profit wise.
The Options Capitalist
http://www.navivest.com
Tags: exxon mobil, navivest, options capitalist, smith international, xto energy
Stocks To Watch – 02/19/2010
Feb 19, 2010 Earnings, Stock Market, Stocks
Apollo Group (APOL)
College Operator Apollo Group, better known for its University of Phoenix, is off $4.11 to $67.34, a loss of 6.34% after announcing that it is anticipating its earnings for its second quarter period ending February 28, will come in between $0.77 and $0.82, with revenue coming in at $1.07 billion. This is below current consensus estimates of revenue of $1.09 billion and an EPS of $0.94.
First Solar (FSLR)
Solar panel maker First Solar is currently the worst performer among S”&P 500 stocks. The stock is off $8.98 or 7.11% to $117.31. First Solar reaffirmed its estimates for this year, announcing that it still expects revenue to come in between $2.7 to $2.9 billion, with EPS coming in at $6.05 to $6.85. Traders were disappointed that the company did not raise its guidance
Intuit (INTU)
Intuit, which makes software for personal and small business use, is up $2.60 to $32.92, a gain of 8.58%. The company reported yesterday, that its fiscal second quarter profits rose 34%. The company also reported selling 10.9 million units of its Turbo Tax software through February 13, which was a million units ahead of last year’s sales.
JC Penney (JCP)
The mall retailer is up $1.73 to $27.69, a 6.66% gain on the company’s latest earnings results. For its latest four quarter period, JCP reported earnings of $200 million, or $0.84 per share on revenue of $5.55 billion, a 3.6% decline over the comparable period a year ago. The earnings was down from $211 million or $0.95 in the same period a year ago.
Analysts had been forecasting revenue of $5.55 billion and an EPS of $0.82.
The company also raised current year guidance, announcing that it anticipates earnings of $1.55 per share, $0.10 better that the current consensus estimates of $1.45.
Smith International (SII)
The oil and gas services company, which is currently the second best performer among the 500 S&P 500 stocks, is up $4.65 or 13.94% to $38, on a report from the Wall Street Journal, that the company is in talks to be acquired by Schlumberger (SLB).
Tags: apollo group, first solar, intuit, jc penney, s&p 500, smith international
