Buzz Stocks: RetailMeNot, Microsoft Corporation, Canon

Today's stocks to watch in the news include RetailMeNot Inc (SALE), Microsoft Corporation (MSFT), and Canon Inc (ADR) (CAJ)

by Karee Venema

Published on Feb 10, 2015 at 9:21 AM
Updated on Jul 1, 2020 at 5:07 PM

Stocks are poised for a higher open, amid hope for a Greek bailout resolution. Meanwhile, among specific equities in focus are online coupon concern RetailMeNot Inc (NASDAQ:SALE), software specialist Microsoft Corporation (NASDAQ:MSFT), and camera maker Canon Inc (ADR) (NYSE:CAJ).

  • SALE is down 11% in electronic trading, as the company's worse-than-expected current-quarter and full-year revenue outlooks overshadow stronger-than-forecast fourth-quarter results. Today's projected price move is just more of the same for a stock that's surrendered almost two-thirds of its value over the past 52 weeks, and should the shares extend this trajectory, a round of downgrades and/or price-target cuts could be on the horizon. More than half of covering analysts maintain a "strong buy" rating on RetailMeNot Inc, with not a single "sell" to be found. Plus, the consensus 12-month price target of $25.60 stands at a 65.5% premium to last night's close at $15.47 -- and in territory not charted since last July.

  • Following in the recent footsteps of Apple Inc. (NASDAQ:AAPL), MSFT unveiled a massive bond sale. Specifically, the company -- which holds the title as the globe's sole Triple-A rated technology firm -- announced it will issue $10.75 billion in bonds, the loftiest so far in 2015. Separately, MSFT and Samsung settled a patent contract dispute. On the charts, it's been a tough start to the year for Microsoft Corporation -- due in large part to a poorly received earnings report in late January -- off 8.8% at $42.36. Options traders have kept the faith, however, and at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), have bought to open nearly three calls for every put over the past 10 sessions. What's more, the resultant call/put volume ratio of 2.73 ranks higher than 95% of similar readings taken in the past year, meaning calls have been bought to open over puts at a near-annual-high clip.

  • CAJ has put in a roughly $2.8 billion bid for Swedish camera maker Axis, as the company looks to boost its intellectual property portfolio, and to capitalize on the latter's video surveillance division. While Axis' board of directors is reportedly in support of the offer, Canon Inc is expected to present the deal -- which will still require regulatory approval -- to its shareholders in March. For most of the past year, CAJ has been bouncing between $29.50 and $34, and settled last night near the middle of this range, at $31.33. Meanwhile, on the sentiment front, short-term speculators have shown a preference for calls over puts, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.44, which ranks in the 32nd percentile of its annual range.

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