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Benzinga Market Primer: Friday May 24

Tim Parker — Fri, 24 May 2013 10:03:57 +0000

The buy on the dip mentality seems to be alive and well in this market as the Dow erased a loss of more than 120 points to end close to flat on the day. Let’s not forget that this is a market that found a way to attract buyers on a day when the Nikkei was down more than 7 percent and took most of the global markets with it.

This morning, markets around the world are quiet with most major averages near the flat line.

Morning News

S&P 500 futures are down nearly 3 points to 1647.25

The EUR/USD was up at 0.38 percent to 1.2984

German 10-year government bond yields are unchanged at 1.466 percent.

Italian 10-year government bond yields rose nearly 1 basis point to 4.014 percent.

Gold was down 0.47 percent to $1,386.60 per ounce.

St. Louis Fed President James Bullard told CNBC that inflation needs to move closer to target before QE is tapered.

The Nekkei saw extreme volatility once again. Up more than 2 percent close to its open, it closed up just shy of 1 percent.

ECB head, Mario Draghi said that the euro zone was more stable than one year ago and that the region needed more integration with the U.K. as a part of that, according to

Wireless Ronin Common Stock to Move to OTCQB; NASDAQ Delisting Based on Insufficient Shareholders' Equity

Eddie Staley — Thu, 23 May 2013 20:31:55 +0000

Wireless Ronin Technologies (NASDAQ: RNIN), a leading marketing technologies provider, announced today that it has been notified by the NASDAQ Stock Market (NASDAQ) that trading in the Company's securities will be suspended on NASDAQ effective with the open of trading on May 31, 2013. On that same date, the Company's common stock will become eligible to trade on the OTCQB, which is an electronic trading platform of the OTC Markets Group. The Company's trading symbol will remain RNIN. The Company does not intend to appeal NASDAQ's determination since it believes its efforts are better directed towards the Company's core business operations.

"This move will not affect our ability to service our clients, impact our operations or affect our employees, nor ...

Prime Acquisition Announces Receipt of Nasdaq Staff Determination Letter

Eddie Staley — Thu, 23 May 2013 20:14:23 +0000

Prime Acquisition (NASDAQ: PACQ), a special purpose acquisition company, today announced that, on May 17, 2013, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating that Nasdaq's staff (the “Staff”) had determined not to grant the Company's request for an extension of the period in which the Company has to regain compliance with Listing Rule 5550(a)(3), which rule requires that the Company maintain a minimum of 300 public holders for continued listing of its securities on Nasdaq, and to proceed to delist the Company's securities from Nasdaq. The Staff granted the Company an initial period to regain compliance with Listing Rule 5550(a)(3) in a letter dated March 4, 2013, which period expired on April 12, 2013. The Staff also determined that Prime was not in compliance ...

Tesla Becomes Only American Auto Company to Fully Repay the Government

Tim Parker — Thu, 23 May 2013 17:43:55 +0000

If you happen to be at a party with Elon Musk, first, congratulations on whatever made you your first couple of million, and second, you might want to steer clear because these days, the guy has to have an ego that would fill the room.

And let’s be honest. If any of us had a year like he has, we would probably feel pretty good about ourselves too. 2013 has been especially kind to him and his company, Tesla Motors (NASDAQ: TSLA). Let’s run down why this has been the summer of financial love for the company.

The company announced that it was profitable for the first time.
It’s forecasting a higher-than-expect sales year.
It raised $1 billion in its last round of fundraising.
Its Model S earned the highest auto test ratings ever from the well-respected Consumer Reports magazine.

If that’s not enough to make you the self-proclaimed most interesting man alive, on Wednesday, he scored some more major bragging rights.

Tesla wrote a $451.8 million check to the ...

Electronic Arts Reverses Decision, Develops New Wii U Games

Louis Bedigian — Wed, 22 May 2013 13:07:48 +0000

Electronic Arts (NASDAQ: EA) CFO Blake Jorgensen has confirmed that, contrary to the previous comments from company spokesperson Jeff Brown (and a barrage of negative tweets from an EA engineer), the company is developing games for Nintendo's (OTC: NTDOY) console. According to IGN, Jorgensen made the announcement at the Stifel Nicolaus 2013 Internet, Media and Communications Conference.

"You know, I think Nintendo's business was more [an] extension of their last console," said Jorgensen, as quoted by IGN. "I think what the consumer will find is a lot more powerful gameplay with the new boxes that are coming out, and a lot of excitement, but it'll remain to be seen as to the services associated with those as to how consumers decide which direction they might want to go."

This announcement comes after Nintendo -- and most of all its newest console -- endured a week of negative press. The company ...

The Mystery Irish Loophole that Landed Apple in Hot Water

Tim Parker — Wed, 22 May 2013 12:30:44 +0000

Apple (NASDAQ: AAPL) found itself in unfamiliar territory on Tuesday.

CEO Tim Cook was sitting in front of a congressional subcommittee spilling the beans about its offshore operations. Who had ever heard of these three “subsidiaries”, Apple Operations International (AOI), Apple Sales International (ASI) and Apple Operations Europe (AOE)?

The answer is, pretty much nobody until a congressional probe uncovered the entities. As Senator John McCain said, "It is important to understand Apple's byzantine tax structure so that we can effectively close the loopholes utilized by many US multinational companies, particularly in this era of sequestration,"

McCain, in his use of the word, “Byzantine”, was claiming that there is devious action but didn’t claim any illegal activity. Confused by all of this? Here’s the short explanation.

Ireland, with its population of 4.6 million isn’t exactly a world powerhouse with more tax revenue than it knows what to do with. It’s not a Germany, Japan, or United States where it attracts the big revenue producing corporate giants either.

What ...

The Top 10 Notable Quotes from Apple's Senate Statement

Tim Parker — Tue, 21 May 2013 12:35:53 +0000

On Tuesday, Apple (NASDAQ: AAPL) CEO Tim Cook will testify before a Senate subcommittee.

According to Reuters, on Monday, the subcommittee released a 40 page memorandum that claims to have identified three Irish subsidiaries that have no tax residency in Ireland and have paid no corporate income taxes in the last five years.

In it’s prepared statement that will be read at the hearing on Tuesday, Apple CEO Tim Cook will address this and other accusations and make the case that Apple follows US tax laws, has created more than a half of a million jobs, and would pay more in US corporate taxes if US corporate tax law were to be simplified and updated.

Here are some of the notable quotes that you will hear in Cook’s testimony.

“Apple complies fully with both the laws and spirit of the laws. And Apple pays all its required taxes, both in this country and abroad.”
“Apple welcomes an objective examination of the US corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy.”
“Apple ...

VisionChina Media Receives Deficiency Letter from NASDAQ Due to Delay in Filing Annual Report on Form 20-F

Eddie Staley — Mon, 20 May 2013 20:22:39 +0000

VisionChina Media (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced that on May 16, 2013, the Company received a letter (the "Letter") from NASDAQ Stock Market LLC ("NASDAQ") indicating that it was not in compliance with the continued listing requirements under NASDAQ Listing Rule 5250(c)(1). The Letter, which the Company expected, was issued in accordance with NASDAQ procedures because the Company did not file its annual report on Form 20-F for the year ended December 31, 2012 with the Securities and Exchange Commission by the extended May 15, 2013 deadline.

Pursuant to the NASDAQ listing standards, the Company has 14 calendar days, or until May 30, 2013, to submit a plan to NASDAQ to regain compliance with the NASDAQ Listing Rules, and if NASDAQ accepts the Company's plan of compliance, NASDAQ may grant an extension of up to 180 calendar days from the due date of the annual report on Form 20-F, or until November 12, 2013, to regain compliance with the ...

OSI Systems Provides Update on TSA Show Cause Letter

Eddie Staley — Mon, 20 May 2013 13:18:07 +0000

OSI Systems (NASDAQ: OSIS), today announced that its Security division, Rapiscan Systems, has been notified that the Department of Homeland Security ("DHS") issued a Notice of Proposed Debarment in connection with a Show Cause letter from the Transportation Security Administration ("TSA") received by Rapiscan in November 2012. The Show Cause Letter related to the Rapiscan Advanced Imaging Technology system and associated Automated Target Recognition software. The Notice marks the initial phase of the formal proceedings and will allow Rapiscan, for the first time since the Show Cause letter was issued, to provide information and communicate directly with DHS officials. OSI Systems CEO, Deepak Chopra, commented, "Although we have not yet received the actual notice, it would be the first written correspondence from DHS regarding the Show Cause letter. We continue to believe that, with respect to all issues raised in the Show Cause letter, we have complied with all obligations and served as a responsible vendor to the TSA. We look forward to having the opportunity to present our views to DHS and working with the agency to achieve ...

Judge Blocks $13M Arbitration Over Mortgage-Backed Securities Against SunTrust -Reuters

Charles Gross — Fri, 17 May 2013 18:36:04 +0000

Tesla Faces Vehicle Sales Pushback from North Carolina Lawmakers

Cooper Ziecik — Fri, 17 May 2013 17:26:09 +0000

On Monday, Senate passed a bill allowing North Carolina to ban the direct sales of Tesla (NYSE: TSLA) vehicles to consumers.

Specifically, the bill would make it illegal for any automaker to bypass dealerships and sell directly in the state. The bill is sponsored by the North Carolina Automobile Dealers Association (NCADA), a trade group representing the state's franchised dealerships.

If this bill passes, which it still needs to pass the full House to do so, Tesla would be blocked from selling cars in the state of North Carolina. This is due to Tesla's unique business model.

Tesla's business model is unique in that it sidesteps selling their vehicles through licensed dealerships and instead sells directly to consumers through its company owned stores and service centers. This is similar to what Dell (NASDAQ: DELL) did with its products from 1985-1993. Dell explicitly excluded third-party retailers such as Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT) and took it upon themselves to sell directly to consumers.

Tesla has several reasons for pursuing this unique model, outlined by CEO Elon Musk in a public letter. Mainly, Musk states that existing dealerships would have a fundamental conflict of interest between selling traditional gasoline cars, which are ...

Vascular Solutions Issues Patent Infringement Complaint Against Boston Scientific

Paul Quintaro — Thu, 16 May 2013 20:19:26 +0000

Vascular Solutions, Inc. (Nasdaq: VASC) announced today that it has filed a patent infringement complaint in the U.S. District Court for the District of Minnesota against Boston Scientific Corporation (NYSE: BSX). The complaint alleges that Boston Scientific has infringed three patents owned by Vascular Solutions concerning rapid exchange guide extension technology by manufacturing and selling its Guidezilla™ guide ...

Vascular Solutions Files Patent Infringement Complaint Against Boston Scientific

Paul Quintaro — Thu, 16 May 2013 20:07:49 +0000

Vascular Solutions (Nasdaq: VASC) announced today that it has filed a patent infringement complaint in the U.S. District Court for the District of Minnesota against Boston Scientific Corporation (NYSE: BSX). The complaint alleges that Boston Scientific has infringed three patents owned by Vascular Solutions concerning rapid exchange guide extension technology by manufacturing and selling its Guidezilla™ guide extension catheter which received 510(k) clearance in March 2013. Vascular Solutions is seeking an injunction against Boston Scientific prohibiting the manufacture and sale of its Guidezilla catheter as well as damages for lost profits and legal costs.

U.S. Patents 8,048,032, 8,142,413 and 8,292,850, comprising 60 claims in total and having an initial filing date of May 2006, were issued by the U.S. Patent & Trademark Office to Howard Root, et. al. and assigned to Vascular Solutions concerning rapid exchange guide extension technology. These patents form the basis for Vascular Solutions' GuideLiner® catheter, the first and until now only rapid exchange mother-and-child guide extension ...

Flowers Foods Beats on Revenue Estimate

Garet Zatz — Thu, 16 May 2013 19:38:16 +0000

Flowers Foods (NYSE: FLO), the second-largest producer and marketer of fresh packaged bakery foods in the United States, released earnings results for the fiscal quarter ending March 31, 2013 after the closing bell on Wednesday. In after-hours trading, the stock was up 2.29 percent to $34.42.

The company reported an increase in its sales of 25.9 percent, which equated to net earnings of $1.13 billion or $0.46 earnings per share, compared to last year's corresponding quarter net earnings of $889.74 million or $0.28 earnings per share. The increase in sales increased earnings per share 64.285 percent, beating Wall Street estimates of $0.41 earnings per share.

The company's adjusted net income increased from $37.9 million to $64.9 million compared to the prior year's fiscal quarter. The adjusted net income takes into account the company's bargain purchase accounting gain/acquisition-related costs for the quarter from the completed acquisition of the Sara Lee and Earthgrain brands for bread ...

Kohl's Surges to Six-Month High on Stylish Earnings

Clay Wyatt — Thu, 16 May 2013 15:01:51 +0000

Kohl's (NYSE: KSS) has jumped to a six-month high after posting strong first-quarter results.

The Menomonee Falls, Wisconsin-based firm's EPS rose 4.8 percent to $0.66, easily topping the $0.58 Wall Street consensus.

Revenue dropped one percent year-over-year to $4.19 billion and fell just short of the $4.29 billion analysts expected.

Running Forward

The company opened nine new stores during the first quarter. It now has 1,155 locations in 49 states.

In the fall, it plans to open an additional three stores and remodel 30.

North Dallas 400

On April 16, The Dallas Morning News reported Kohl's has signed a letter of intent to lease two empty office buildings north of Dallas. According to the story, the company will relocate hundreds of workers to the site. It does not plan to use the buildings for its corporate headquarters, per the report.

This comes after the clothing retailer began construction on a 951,000 square-foot warehouse in the Dallas area in 2012, ...