Through The Fly's Eyes: Rumor Mill

from Tedd Cohen of Theflyonthewall.com











Rumor Round-up


Netflix (NFLX)

Amazing. Amazon (AMZN), that big online retailer, sees the flix for the net. The shares keep rising for the online DVD rental company—up about 15%, highest since January-- even if their discs do come a little scratched. More than that though is while new subscribers are coming on; it’s not exactly going gangbusters. Still, 6.8M is a whole lot of subscribers. Will Amazon, or someone else, overpay?

Rackable (RACK)

Which came first: The ongoing takeover rumors or the higher stock price? Or was it that Dell (DELL) is said to be after Rackable, a provider of servers and storage products for high density data center deployments. Rack it up.

Feldman Mall Properties (FMP)

Word is that this real estate investment trust will look for a sale, combo or merger. They said the venerable firm of Freidman, Billings, Ramsey & Co. will help them “explore strategic alternatives.” Then the stock went up.

STILL FLYING AROUND

Trump (TRMP)

Dennis Gomes, whose name surfaced in March, is a one time gaming exec and regulator. He’s signed a confidentiality agreement to have a look see at the firm’s Atlantic City casinos. Separately, Las Vegas’ Boyd Gaming (BYD) has also been mentioned as a possible contender.

YRC Worldwide (YRCW)

The CEO of this Kansas-based transportation service provider has been quoted as saying that a takeover is possible. An LBO is likely. This week the shares have actively been trading up.

Dollar Tree (DLTR)

Imagine a dollar tree where the stock keeps going up, up, up. Well, here it is, once again, a subject of takeover talk.

BUZZ

United States Steel (X): Russia’s Severstal may be prowling around…Plains Exploration & Production (PXP): Takeover candidate’s stock is sharply higher… Micron Technology (MU): Blackstone has interest…Ameristar Casinos (ASCA): A hot stock and takeover rumors abound…Nvidia (NVDA): Remains an LBO candidate…First Marblehead (FMD): The student loan business is booming and earnings growth is strong, but who would buy it?...Marriott International (MAR): A target? But where’s the movement?...Oakley (OO) as a target has been around and around, and now some say it will be bought by Luxottica Group (LUX).