M*Modal's intention to file bankruptcy was leaked on March 7th via the WSJ. Therefore, highly unlikely that the big jump in Friday's share price, and heavy March option Call buying, was related to this news.
I speculate that the market could love Nuance once again if the heavy weight of the incompetent and over-paid mgmt cloud were showing signs of being lifted. Dillione's [forced??] exit, in addition to the replacement of the Exec VP of Sales, demonstrates that the Icahn team is hell-bent on fixing the leadership problem.
Nuance stock could be one of the few big tech gainers before the next big correction materializes. I think that the 'go away in May' market mantra will really play itself out this year.
The Committee also approved a retention agreement with Janet M. Dillione, the Company’s Executive Vice President and GM Healthcare, to be in effect through September 30, 2014 (the “Retention Agreement”). The Retention Agreement provides that if Ms. Dillione’s employment is terminated without “cause” (as such term is defined in the Retention Agreement), Ms. Dillione will receive (i) a lump sum payment equal to 100% of base salary, (ii) a lump sum payment equal to the pro-rated annual target bonus for the year of termination, based on actual performance, (iii) 100% accelerated vesting of 37,500 time-vested and 37,500 performance-vested restricted stock units granted to Ms. Dillione on December 17, 2012, with performance-vesting based on actual achievement if employed for the full fiscal year, and (iv) Company paid COBRA medical continuation coverage for 12 months following termination. The foregoing benefits will be paid in lieu of severance under Ms. Dillione’s existing offer letter dated March 29, 2010. The Retention Agreement further provides that the Company must provide a 90 day notice period, or payment in lieu of notice, prior to terminating Ms. Dillione’s employment without cause. Severance benefits described above are conditioned on Ms. Dillione executing a release of claims in favor of the Company.
We'll find out once Nuance indicates the terms of Dillione's departure.
Oppenheimer maintains its Outperform rating and $22 price target on Nuance Communications (Nasdaq: NUAN) followng recent management changes. In an 8K filed on 3/13, NUAN announced that its EVP & GM of the Healthcare business Janet Dillione notified the company of her decision to step down from her position effective March 21, 2014.
Analyst Shaul Eyal commented, “The announcement should not come as a surprise given the ongoing business model shift within the Mobile/Consumer and Healthcare business (45% of revenue). Dillione has grown the healthcare business to ~$1B; however, execution has been hard to come by in the previous few quarters. Investors should view this news positively as NUAN has made some management team changes recently (i.e. replacing Bill Nelson with Bill Robbins as head of Worldwide Sales). This announcement should signal to investors that NUAN wants to bring more focus and execution to re-accelerate top-line growth.”
I found the below vote to be of particular interest. Extra close:
Proposal 3: To approve a non-binding advisory vote on executive officer compensation:
Broker Non-Votes 67,241,953
Does this mean that Ricci is now more vulnerable to a downwards adjustment to his super-inflated compensation?? Hope so.
Do any of you happen to know how long the required selling typically lasts?
I'm not sure what the actual exit dead-line is for index funds but wit would be good to know.
If your NatGas price predictions, along with stated timing, are true, and I hope that they are, then 2014 should reflect a large percentage increase in M&A activity within the sector when compared to 2013's dismal deal activity.
O&G company's would see now as the opportune time to begin making acquisition moves as they plan for the anticipated near future upswing/trend change.
Fingers are crossed...
HK hit a new 52 week low today so, based on 30+ yrs of experience, it is more likely than not that there is something negative going on that non-institutions are not yet privy to.
I have not been able to pull the trigger on this one because the stock's weak behavior for such a long period of time and as a result of HK's dangerously high debt ratio (and much higher than average interest rate on the debt).
Keeping HK on my 'watch list' only because of FW's background. Waiting until the suspected bad news is released. Will revaluate then.
By the nature of your comments, it seems like you do a lot of research.
Which Oil and NatGas companies do you consider to be undervalued and why??
The Repsol info is useful to know. Thanks.
I thought that TPG 'sold' those $6 Puts, not buy??
Post TW era, SD is making very prudent & diligent moves. Not sure about oil but the NatGas long-term trend is upwards. This bodes extremely well for SD since they, unlike many other NG producers, are minimally hedged.
Very interesting. Thanks for sharing.
I observed earlier postings stating that Repsol would need to do any major acquisitions before 12/31/13 in order to capitalize on a significant tax benefit. If true, that date has come and gone thus them buying SD would be unlikely in at least the near future.
A couple of questions:
1. Again, not being an options guy, what is the effect on TPG if their 3/22 Put options expire and SD's stock price is around $6?
2. Do you know how many shares TPG increased their SD holdings in the 3rd quarter alone? I have located how many shares Cooperman added, but not TPG.
Lots of $6 CALL volume activity today but this time for Jan. & Feb. and Calls only, not Puts.
Something is definitely up but not so easy to confidently speculate as to what, unfortunately.
You did make a similar claim on your post of 10/30/13 and your stock appreciation prediction ended up being very incorrect. Sorry but no-can put credence in your statements.
Heavy volume on both March $6 Calls and Puts. Not sure how to interpret this as I'm not an Options guy.
Anyone who is Options Savvy, feel free to present your theory.
This is very interesting considering Carlyle's 10.5% ownership in SD and Riverstone owning the exact same significant percentage of stock. --DZ
'P-E firms eye minority stakes rather than just full buyouts
With $585B of "dry powder" money to put to use in North America, private-equity firms are increasingly looking to take minority stakes in companies and partner with them rather than buy them outright.
Carlyle (CG) and Blackstone (BX) are among those taking such an approach, with the latter this week agreeing to purchase a 13% stake in Crocs for $200M.
The logic of the strategy is that full deals are expensive, competition for minority stakes is less, the transactions can be custom-made, and they often don't involve auctions.
However, the story of Hicks, Muse, Tate & Furst should serve as a bit of a warning - one of the biggest P-E firms of the 1990s spent too much on telecom investments that didn't pay off, leading to its closure.
Other P-E firms include KKR (KKR), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global
Search under the following term:
'This Court Ruling Could Raise Natural Gas Prices'
This ruling slipped by my radar. Very likely now that certain key PA municipalities will begin banning fracing activities.
Also, selling the GOM asset could be a prelude to a sale of the rest of Sandridge. Always possible that they found a buyer for SD but the buyer does not want the GOM as part of the deal. A pattern may be forming that is [finally] a big positive for SD shareholders.
I did some research on Fieldwood as I have never heard of them. Interesting round-about connection to SD. The Fieldwood CEO sold his previous company's GOM assets to SD. His previous company was primarily financed by Riverstone.
If there is a deal between SD and Fieldwood, it would likely involve SD selling their GOM asset to Fieldwood. Also interesting to note that FW is financed by Riverstone. Riverstone is jointly partnered with Carlyle. Combined they possess a 50-50 split on 21% of Sandridge shares (10.5% is larger than what TPG, Kellet, or Fiarfax owns).
Thus one must conclude that there may be merit to the rumor presented here.
I took the below analyst commentary from a mid-September report. Anyone who has studied SD's numbers enough to know what the estimated company valuation would be based upon the below metrics?? (not sure if there is enough info to get there but thought I'd ask just in case).
"Valuations are rising with PLS's latest benchmarks currently running about $120,000/bopd and $21.00/bbl proved for oil and $5,800/Mcfd proved and $1.70/Mcf proved for gas."
Yahoo reportedly prepping Siri/Google Now rival
Android Police has posted images and a video clip showing what it says is a Yahoo (YHOO) voice assistant app under development. The app, which can be accessed via an icon that appears on home screens, relies (like Google Now) on user data to push time/location-sensitive information.
The app also supports (like both Google Now and Apple's Siri) voice recognition input and the ability to send quick messages, and (on Android phones) can be accessed through an icon that appears on home screens.
As Android Police observes, Yahoo recently acquired natural language-processing startup SkyPhrase, whose technology could be quite useful for creating a voice assistant app.
If/when the app launches, Yahoo could leverage the volumes of user data it has to push relevant information to users. At the same time, Google has even more user data, and both Google Now and Siri have big head starts in both reeling in users and optimizing their services based on activity.
It looks like all of the big players interest in paying licensing fees to Nuance is waning quickly. Scary trend if the Icahn support were not present. I suspect that the CEO's days are numbered.