Mid Day News Review (RIMM, NOK, DLTR, CCO, EMR)
Research In Motion Limited (USA)(NASDAQ:RIMM) plunged 4.23% to $10.29 after confirming it has begun conducting layoffs as part of its restructuring efforts. There may be concerns the job cuts won’t go far enough – the WSJ reports RIM’s layoffs have thus far involved letting go of “small batches of employees” at a time. More clarity may be provided when RIM delivers its FQ1 report on June 28.
Nokia Corporation (ADR)(NYSE:NOK) states it’s open to selling some of its ~30K patents to raise cash, IP consultant Alexander Butler suggests Nokia’s portfolio could be worth more than the company’s market cap (currently $9.3B), given the value assigned to Motorola and Nortel’s patents. Nokia’s portfolio includes both numerous standards-essential 3G/4G patents, as well as many innovations related to smartphone software, touchscreen interfaces, and phone design. Shares of NOK slid 1.77% to $2.49.
Dollar Tree, Inc.(NASDAQ:DLTR) fell 2.67% to $110.46 after stating that the company handed out a $10M special one-time retention award to CEO Bob Sasser, directly attributing the lavish payment to the runup of the company’s stock price. Though DLTR’s 52-week return of 73.9% can’t be disputed, the exec could also offer some thanks for a U.S. economy that forced strapped consumers to shop down to find bargains.
Clear Channel Outdoor Holdings, Inc.(NYSE:CCO) added 0.81% after the company said it’s on hunt to make key acquisitions in the midst of what it sees as an industry-wide shakeup with the potential for the digitization of billboards starting to be realized. China and Latin America will be a particular focus, says CEO William Eccleshare. Yesterday, the buzz from the company was that it would take a look at CBS’ billboard division if the price gets more enticing.
Emerson Electric Co.(NYSE:EMR) declined 2.13% to $45.97 after it has approached U.K. company Invensys about acquiring its Foxboro unit, a maker of meters and control systems, and even possibly the whole firm, Bloomberg reports. Invensys, whose market cap is $2.6B, is exploring its options, and has spoken to GE and Siemens (SI), which is interested in Invensys’ rail ops.