Shares of Ruckus Wireless (RKUS) and Aruba Networks (ARUN) are rising after the FCC announced that it would allocate new funds to subsidize the launch of WiFi networks in schools and libraries. Ruckus and Aruba provide products used for WiFi networks. WHAT'S NEW: The FCC said it would allocate $2B over the next two years to subsidize the launch of WiFi connections at schools and libraries. For the following three years, the agency said it would look to spend $1B annually on the project. The FCC said the funds would be "distributed fairly to all schools and libraries while recognizing the needs of the nation’s rural and poorest school districts."
Not set in stone
Although the rules are just preliminary, the concerns of these companies are valid. With the difficulties of the past still weighing upon them, any new burden will not be welcome. While both Radian and Genworth saw their stock prices drop by around 5% within the first two hours of trading on Friday morning, hard-hit MGIC toppled by nearly 13%, likely not helped by an early morning downgrade by Goldman Sachs.
After the initial shock abates, however, things should begin to look up for these insurers – particularly Genworth, which exhibited the least amount of panic regarding the proposed rules. Probably, the input from the industry will soften the edges of the FHFA's requirements, as well. For the moment, however, the bloodletting continues.
UPDATE: NQ Mobile (NQ) Active on Rumors
10:16 AM ET, 07/02/2014 - Street Insider
(Updated - July 2, 201410:27 AM EDT)
NQ Mobile (NYSE: NQ) was active Wednesday on rumors the company's delayed 20-F is ready to be released. The original source of the rumor is unknown, but given heavy short interest, it was enough to send shares higher by about 10%.
NQ Mobile (NQ) Higher Following Block Appears on CNBC
11:25 AM ET, 07/01/2014 - Street Insider
NQ Mobile (NYSE: NQ) traded higher Tuesday following an appearance by Muddy Waters' Carson Block earlier on CNBC. While share gained, the interview did not appear to contain new information, and investors continue to wait for the company to file its 20-F. Unsurprisingly, Block thinks NQ is unlikely to gets an unqualified audit from PwC given the length of time taken to file.