This Week's 5 Smartest Stock Moves
If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.
1. Debtor alive
Sirius XM Radio raised some money this week, issuing $600 million in senior notes.
Financing moves rarely make this column. Why would we applaud a leveraged media giant taking on more debt? This is a brilliant move on Sirius XM's part. For starters, it's cashing in on an attractive interest rate of 5.75% for the notes that will come due in eight years.
The satellite radio provider is also using the proceeds to help pay off its 8.75% senior notes due in 2015. In other words, it's shaving its borrowing costs while pushing out its maturities another six years.
2. Pop the question
Making soda at home is becoming more popular than you think. SodaStream moved higher after posting better-than-expected quarterly results.
Revenue rose 29%, to $132.4 million, ahead of the 26% pop that analysts were targeting. Net income climbed 36%, to $12.9 million -- or $0.57 a share -- also ahead of the $0.54 a share that Wall Street was forecasting.
It was a solid quarter. Unit sales of soda makers, carbonators, and soda flavors were up 22%, 31%, and 18%, respectively. The star attraction was a 55% surge in soda-thirsty Americas, but even the more established European region came through with a 26% uptick in revenue.
SodaStream is juicing up its guidance for the second time this year. The Israeli-based pop star is now eyeing 29% top-line growth, and 23% in earnings growth for all of 2013.
Do you really think that this is just a fad?
3. Can the Facebook IPO jokes
Facebook was a dud when it went public, but now it's getting a second chance to make things right.
The social networking website operator hit $38 in intraday trading on Wednesday, temporarily reclaiming its IPO price from May of last year.
It's been a long road back for Facebook. The stock became a busted IPO shortly after going public 15 months ago, bottoming out in the mid-teens late last summer. Facebook has clawed its way back with strong quarterly performances, debunking the pervasive myth that the site is starting to wane in popularity.
Along the way, Facebook has introduced new monetization initiatives, especially in the area of mobile, where usage is exploding.
4. Gel us
Questcor Pharmaceuticals was a big winner this week, soaring 28% on Wednesday after posting blowout quarterly results.
There's been a dark cloud surrounding Questcor's ability to be reimbursed for its controversially expensive flagship Acthar gel, but it didn't have a problem getting paid this time around. Revenue and earnings soared 64% and 67%, respectively, fueled by a 50% spike in prescriptions for Acthar.
"The foundation for potential additional growth over the near-, medium- and long-term continues to strengthen," its CEO notes, easing recent concerns.
Questcor was already moving higher a week earlier after announcing that it would be starting the second phase of clinical trials for Achtar as a treatment for patients with Lou Gehrig's disease.
5. Bowes were the days
Ptiney Bowes became an unlikely name hitting a new 52-week high this week. Metered mail? Are folks even mailing stuff out anymore in this era of email, texts, and faxes?
However, Pitney Bowes took flight after announcing that it would be selling its North American management services business in a $400 million deal. The metered-mail giant had earlier entered into a deal to unload its European management services division.
This is the business that entails providing mail and office management, document management, and marketing solutions. That may not seem like a very exciting business, and Pitney Bowes' latest financials show that it's not doing all that well. Finding a buyer now -- raising money along the way -- can only help, as Pitney Bowes tries to map out a turnaround strategy.
The article This Week's 5 Smartest Stock Moves originally appeared on Fool.com.Longtime Fool contributor Rick Munarriz owns shares of SodaStream. The Motley Fool recommends Facebook and SodaStream. The Motley Fool owns shares of Facebook and SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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