For Immediate Release
Chicago, IL - May 11, 2012 - 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
Bed Bath & Beyond
St. Jude Medical
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Here are highlights from Thursday's Analyst
Bed, Bath & Beyond to Acquire Cost Plus
Bed Bath & Beyond Inc.
), one of the leading operators of specialty retail stores in the
U.S. and Canada, has agreed to buy leading casual home furnishings
and entertainment products retailer,
Cost Plus Inc.
) in an all-cash transaction.
As per the agreement, Bed Bath will make a cash tender offer for
all shares of Cost Plus for a consideration of $22 per share
followed by a merger. The transaction has received approval from
all shareholders of both companies.
The tender offer depends on the expiration of the waiting period
under the Hart-Scott-Rodino Antitrust Improvement Act of 1976,
tendering of shares by a minimum of 90% of Cost Plus shareholders
and other customary closing conditions. Additionally, Bed Bath has
the option to buy newly issued shares of Cost Plus, under the
top-up right in order to meet minimum tender condition.
Bed Bath has signed agreements with two largest stakeholders of
Cost Plus -- Red Mountain Capital Partners LLC and Stephens
Investment Holdings LLC -- agreeing to tender all their shares,
which is about 26% interest in Cost Plus.
The transaction, which is scheduled to close in Bed Bath's
second quarter of fiscal 2012, is expected to be accretive to the
merged company's fiscal 2012 earnings per share. Bed Bath's
projects the acquisition to increase its fiscal 2012 earnings in
the high single digit to a low double-digit percentage range. The
company expects to fund the transaction with the company's cash on
Following the transaction, Cost Plus will retain its Oakland,
California headquarters. The company currently operates 259 stores
under the names World Market, Cost Plus World Market, Cost Plus
Imports and World Market Stores in 30 states.
Bed Bath & Beyond Inc. offers merchandise under Bed Bath
& Beyond, Harmon, Christmas Tree Shops (CTS) and buybuy BABY
stores. The New Jersey-based company operated a total of 1,175
stores, including 995 Bed Bath & Beyond stores, 71 CTS stores,
45 Harmon stores and 64 buybuy BABY stores spread across 50 states
of the United States, the District of Columbia, Puerto Rico and
Canada. Apart from this, the company operates two retail stores in
Mexico City under the name Home & More through a joint
Bed Bath & Beyond operates in a highly fragmented industry
and faces competition from larger retailers, such as
Wal-Mart Stores Inc.
) as well as from departmental and specialty stores.
Currently, Bed Bath & Beyond holds a Zacks #3 Rank, implying
a short-term Hold rating on the stock. The company retains a
long-term Neutral recommendation on the stock.
St. Jude Wins Ellipse Approval
Medical devices major
St. Jude Medical
) recently revealed approval from the U.S. Food and Drug
Administration ("FDA") for its Ellipse implantable cardioverter
defibrillator ("ICD"). ICDs are sophisticated implantable devices
used to treat abnormal and lethal rapid heartbeat, which may lead
to unexpected death due to cardiac problems.
The Ellipse ICD was developed with input from over 200 doctors.
It incorporates special design enhancements to yield a miniscule
high energy device, which is the smallest in the world. This ICD
was created to increase both comfort for patients and usability for
According to a doctor, the Ellipse ICD takes into account safety
aspects with its latest algorithms designed to reduce shocks.
Furthermore, this device offers the same cutting edge parameters
incorporated in the company's Fortify Assura ICD.
The Ellipse ICD is in compliance with International Standards
Organization's ("ISO") specification for connector. Its DF4
connector cuts down the count of connections between the device and
the defibrillation lead. It is noteworthy that St. Jude was the
first company to offer DF4 know-how in 2009.
St. Jude is consistently producing revenue growth and positive
earnings surprises over the past several quarters. We are impressed
by its solid fundamentals, healthy growth trajectory, strong
product mix, robust pipeline and cost management initiatives.
While a host of new growth drivers (including new products and
emerging markets) are expected to boost results in 2012 and beyond,
we remain cautious about increased competition, a still soft CRM
market and the dilutive impact of acquisitions.
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BED BATH&BEYOND (BBBY): Free Stock Analysis
COST PLUS INC (CPWM): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
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