The Zacks Analyst Blog Highlights: American Greetings, LookSmart, Hillenbrand, Service Corp. International and Albemarle
CHICAGO, Aug. 9, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Greetings Corp. (NYSE:AM-Free Report), LookSmart, Ltd. (Nasdaq:LOOK-Free Report), Hillenbrand, Inc. (NYSE:HI-Free Report), Service Corp. International (NYSE:SCI-Free Report) and Albemarle Corporation (NYSE:ALB-Free Report).
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Here are highlights from Thursday's Analyst Blog:
Weiss Family Buys American Greetings for $19 per Share
At last, the Weiss Family has triumphed in acquiring American Greetings Corp. (NYSE:AM-Free Report) as the majority of its shareholders accepted the $19.00 per share takeover offer. American Greetings, the nation's second-largest greeting-card maker after Hallmark Cards, will no longer be operated as a public company after this week.
The Weiss Family had been attempting to acquire the company since September last year but did not succeed due to the low offer price. After an initial offer of $17.18 per share, the family raised offer price twice to $18.20 and then to $19.00.
The founding family will have to shell out over $600 million at the new offer price and will also take over a $350-million debt.
The shareholders approved the founding family's offer in a special meeting held yesterday, wherein shareholders who represented 81% of the voting power of the company's outstanding shares gave their positive nod for this transaction. Apart from this, the company, which competes with LookSmart, Ltd. (Nasdaq:LOOK-Free Report), also revealed that 67% of shareholders who aren't affiliated with the Weiss Family or American Greetings leadership also gave their approval.
The Weiss Family currently holds a 7.8% stake in American Greetings. However, most senior managerial positions are currently held by the Weiss Family members. The transaction is expected to close on or about Aug 9, subject to the fulfillment of certain conditions. Following the closure of the merger agreement, American Greetings will become a privately-held company.
American Greetings, whose brands also include Carlton Cards, Recycled Paper Greetings and Papyrus, derives most of its revenues from paper cards, which is a shrinking industry. The intention behind Weiss Family's decision to acquire full control over the company is said to make infrastructure investments independently and without worrying about what shareholders have to say. The family wants to remodel the 107-year company in expectations of better opportunities going forward. However, the company also had to take over a massive debt for this endeavor.
American Greetings designs, manufactures and sells greeting cards and other social expression products in the United States and internationally. The company provides greeting cards, gift packaging products, party goods, stationery, giftware, and custom display fixtures. The company distributes its products through mass merchandisers, chain drug stores, supermarkets, card and gift shops, department stores, military post exchanges, variety stores, and combo stores, as well as through its website Cardstore.com. American Greetings was founded in 1906 and is headquartered in Cleveland, Ohio.
Other Stocks to Consider
American Greetings comes under the Consumer Staples sector. Other stocks worth considering in the sector include Hillenbrand, Inc. (NYSE:HI-Free Report) and Service Corp. International (NYSE:SCI-Free Report). Both these stocks carry Zacks Rank #2 (Buy).
Albermarle Hikes Performance Chemicals Prices
Albemarle Corporation (NYSE:ALB-Free Report) declared that it will raise elemental bromine and hydrobromic acid prices in India, China and other parts of Asia by 25%. The price hike is effective immediately or as per the contracts.
Albemarle's elemental bromine and hydrobromic acid products are mainly used in agricultural and pharmaceuticals products. These products fall under the company's Performance Chemicals division in the Fine Chemistry business segment.
Albemarle is a leading maker of specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services.
Albemarle came out with its second-quarter 2013 results on Jul 17. The company reported adjusted earnings (excluding non-operating items) of 97 cents a share in the quarter compared with $1.28 a share earned in the year-ago quarter. The results were below the Zacks Consensus Estimate of 99 cents.
Profit, as reported, was $82.7 million or 98 cents per share. This represents a 65% increase from $50.1 million or 56 cents per share posted in the prior-year quarter.
Revenues decreased 7.4% to $634.2 million in the quarter from $684.9 million in the year-ago quarter, missing the Zacks Consensus Estimate of $660 million. The results were impacted by exit from the phosphorus flame retardants business, lower metals surcharges, unfavorable pricing in bromine portfolio and lower Fine Chemistry Services volumes, partly offset by favorable volumes in Refinery Catalysts and Brominated Flame Retardant businesses.
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