Top Consumer Stocks
Consumer stocks were mixed Tuesday with shares of consumer
staples companies in the S&P 500 declining less than 0.1% while
shares of consumer discretionary firms in the S&P 500 were
ahead over 1.4%.
In company news, American depository shares of Ku6 Media (
) rallied as much as 75% on Tuesday after a Chinese entrepreneur
increased his direct stake in the online video company and agreed
to provide at least $10 million in new equity or debt financing to
ADS were up 51.4% in late trade at $3.18 per ADS, earlier
climbing as high as $3.68 each. Each ADS is equal to 100 shares of
KUTV common stock and have a 52-week range of 98 cents to $3.90
Under terms of the deal, Xu Xudong, the founder of Sky Profit
Ltd. - an online social media platform for voice, text and video -
and a majority owner of Shanda Media, agreed to buy nearly 1.94
billion KUTV shares now owned by Shanda. Following the transaction,
XU will own a 41% direct interest in KUTV while Shanda's stake
would slip to about 29.5% with around 1.39 billion shares.
The price Xu will pay will be based KUTV's share price during
the seven market sessions immediately preceding the deal closing,
currently slated for April 30.
At Monday's closing price of $2.10 per ADS, Xu would pay around
$41 million for his 1.94 billion shares, rising to around $61
million at the stock's late afternoon price around $3.20 per
XU also agreed to work with the KUTV board to add two new
directors and to raise at least another $10 million in debt or
equity funding for the company by Oct. 30. The companies also
indicated a possible deal in the future where KUTV could acquire
Sky Profit, according to a regulatory filing today.
In other sector news,
(+) MPEL, Macau casino shares rise after local authorities
report a 13.1% jump in March wagering over the prior-year period.
Over the first three months of 2014, gambling revenues were up
19.8% over Q1 levels last year.
(-) EVRY, Posts surprise Q4 net loss of $14.3 mln, or $0.70 per
share, down from a $1.1 mln profit in the year-ago period.
Excluding items, it recorded a $0.05 per share loss, trailing
estimates looking for EPS of $0.31.