GT Advanced Technologies Inc., (Nasdaq:GTAT), announced today that it had, together with certain of its direct and indirect subsidiaries (collectively, GT), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan.
GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.
As a result of the filing, and as is customary with public companies, NASDAQ may temporarily halt trading in the company's stock pending the receipt of additional information on the company's financial condition. The company is cooperating with NASDAQ and will be providing any requested information as promptly as possible.
"GT has a strong and fundamentally sound underlying business," said Tom Gutierrez, president and chief executive officer of GT. "Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.
"We are convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses."
The company indicated that it expects to provide additional details with respect to the chapter 11 filing as soon as they are available. More information, including access to court documents, can be accessed at www.KCCllc.net/gtat (court- appointed claims agent site); or www.nhb.uscourts.gov, the official Bankruptcy Court web site.
Additional information can also be found by visiting the "About Us" section of the company's website at http://www.gtat.com/about-us-overview.htm and clicking the link for "Restructuring Information."
Shares are going to get annihilated. RIP GTAT
Monday, October 6, 2014
Friday, October 3, 2014
This oil stock lost $36 billion
OK $26 billion in market cap. Why? Oil prices have been plunging and they are taking the stock of the world’s largest oil company with them.
At one point this week, crude traded below $90 per barrel. But oil’s move down has been happening for weeks due to a variety of factors – European economic weakness, a stronger dollar, more U.S. supplies, and Saudi Arabia’s intentions to keep its market share. And as oil prices moved lower, so did shares of the second-most valuable company on earth.
Since this year’s June 12 peaks, oil prices have fallen 13 percent to 27-month low. During the same period of time, the price of Exxon Mobil dropped $8.65 per share, or nearly 9 percent. For shareholders, that means $36.85 billion in market cap – more than the entire value of Tesla – disappeared in just 112 days.
The energy sector is more than 10 percent of the S&P 500 and Exxon Mobil is 3.55 percent of the Dow Jones Industrial Average. So, the company’s woes have some bearing on the overall market, too.
Could oil continue to go lower and will that mean more trouble for Exxon Mobil?
David Seaburg, head of equity sales trading at Cowen and Company, thinks oil prices may be getting ready to calm down a little bit, but Exxon Mobil isn’t out of the woods just yet.
“I like the stock but I think there’s a credibility issue with them,” Seaburg said. “They made up the second quarter with a lot of asset sales, and I think left investors with a tremendous amount of questions.”
Seaburg thinks investors want to see what happens with numbers from the third and fourth quarter of this year before they line up behind Exxon Mobil again.
Should crude oil prices settle into a range between $85 and $90 per barrel, Seaburg believes investors would actually be more comfortable buying Exxon Mobil’s stock. In the meantime, he doesn’t think shares in the oil giant will fall much further, though any hope for it to go higher will depend on the next two earnings reports.
“I don’t see a lot of downside risk to this story here,” Seaburg said. “But for this stock to make a meaningful move up, we’re going to have to get some credibility back and that’s going to be through Q3 and Q4 earnings.
At one point this week, crude traded below $90 per barrel. But oil’s move down has been happening for weeks due to a variety of factors – European economic weakness, a stronger dollar, more U.S. supplies, and Saudi Arabia’s intentions to keep its market share. And as oil prices moved lower, so did shares of the second-most valuable company on earth.
Since this year’s June 12 peaks, oil prices have fallen 13 percent to 27-month low. During the same period of time, the price of Exxon Mobil dropped $8.65 per share, or nearly 9 percent. For shareholders, that means $36.85 billion in market cap – more than the entire value of Tesla – disappeared in just 112 days.
The energy sector is more than 10 percent of the S&P 500 and Exxon Mobil is 3.55 percent of the Dow Jones Industrial Average. So, the company’s woes have some bearing on the overall market, too.
Could oil continue to go lower and will that mean more trouble for Exxon Mobil?
David Seaburg, head of equity sales trading at Cowen and Company, thinks oil prices may be getting ready to calm down a little bit, but Exxon Mobil isn’t out of the woods just yet.
“I like the stock but I think there’s a credibility issue with them,” Seaburg said. “They made up the second quarter with a lot of asset sales, and I think left investors with a tremendous amount of questions.”
Seaburg thinks investors want to see what happens with numbers from the third and fourth quarter of this year before they line up behind Exxon Mobil again.
Should crude oil prices settle into a range between $85 and $90 per barrel, Seaburg believes investors would actually be more comfortable buying Exxon Mobil’s stock. In the meantime, he doesn’t think shares in the oil giant will fall much further, though any hope for it to go higher will depend on the next two earnings reports.
“I don’t see a lot of downside risk to this story here,” Seaburg said. “But for this stock to make a meaningful move up, we’re going to have to get some credibility back and that’s going to be through Q3 and Q4 earnings.
IN case you missed this post, why im so pleased with this dividend announcement
Javelin Mortgage Investment (NYSE:JMI) has just announced its upcoming dividend payments for the next quarter. Recall that I like JMI specifically because it is a well-diversified mREIT that pays its distributions monthly. In contrast to many who believed JMI would cut its dividend, JMI has maintained its dividend of $0.15 per month for October, November and December 2014. Happy holidays indeed. The exact payouts are as follows: holders of record on October 15th will be paid October 30th, holders of record on November 17th will be paid November 26th and holders of record December 15th will be paid December 30th.
In my most recent article that I wrote about JMI last week, I urged investors not to panic over the sell-off in JMI shares. I can tell you that this sell-off was in large part due to.....READ MORE
In my most recent article that I wrote about JMI last week, I urged investors not to panic over the sell-off in JMI shares. I can tell you that this sell-off was in large part due to.....READ MORE
Crazy analyst moves you NEED to know about
There are some CRAZY analyst moves you need to know about today.
Abercrombie & Fitch Co. (NYSE: ANF) was raised to Equal Weight from Underweight at Barclays.
Apple Inc. (NASDAQ: AAPL) was downgraded to Hold from Buy at Deutsche Bank late on Thursday afternoon. The shares fell in the after-hours, but the implication of the downgrade was not big at all after looking at the notes.
Cliffs Natural Resources Inc. (NYSE: CLF) was downgraded to Reduce from Buy at Nomura, just after Wells Fargo warned of severe downside earlier this week.
Cree Inc. (NASDAQ: CREE) was downgraded to Hold from Buy at Needham. Canaccord Genuity maintained its Buy rating but lowered the price target to $41 from $64.
CDW Corp. (NYSE: CDW) was raised to Outperform from Market Perform at Raymond James.
Eldorado Gold Corp. (NYSE: EGO) was raised to Sector Perform from Underperform and was given a $9 price target (versus a $7.08 close) at RBC Capital Markets.
Halliburton Co. (NYSE: HAL) was raised to Equal Weight from Underweight with a $63 price target at Morgan Stanley.
Newmont Mining Corp. (NYSE: NEM) was raised to Sector Perform from Underperform at RBC Capital Markets.
Proto Labs Inc. (NYSE: PRLB) was raised to Buy from Hold at Canaccord Genuity after the recent pullback created an attractive entry point.
Pilgrim’s Pride Corp. (NYSE: PPC) was started with a Neutral rating and $33 price target (versus a $30.64 close) at Goldman Sachs.
Salesforce.com Inc. (NYSE: CRM) was started with a Buy rating at Sterne Agee late on Thursday, and another call shows that it was started as Buy at Societe Generale as well.
Silver Spring Network Inc. (NYSE: SSNI) was started with an Outperform rating and was given a $13 price target (versus a $9.48 close) at Raymond James.
Salix Pharmaceuticals Ltd. (NASDAQ: SLXP) was raised to Neutral from Underperform at Credit Suisse.
SunPower Corp. (NASDAQ: SPWR) was raised to Overweight from Neutral and was given a $43 price target (versus a $32.56 close) at J.P. Morgan.
Time to start picking at this gold play
Look, there is no denying that gold and silver have been under tremendous pressure for two years in a row. In fact, in the last 30 days alone gold is down 6% to $1213 per ounce and silver has been decimated, down 12.8% to $17.00 per ounce. In turn, there has been immense pressure once again on the miners. However, this pressure does create opportunities to get long some of the quality names in the sector as we wait for a turnaround in precious metals. Right now, I think Goldcorp (NYSE:GG) is looking very compelling. In the last 30 days, Goldcorp has also dropped 12.5% While the selloff in metals may not yet be complete, in this article I will discuss why I think it is time to consider Goldcorp at current levels......CLICK TO READ FULL ARTICLE
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