Sunday, February 26, 2012

Today's Major Market Move: MetroPCS (ticker: PCS) Climbs 35% in February

US stocks have continued their strong performance in 2012 and among the best performers in February so far is wireless provider MetroPCS (ticker: PCS), which has gained 35% this month. The company announced its calendar Q4 2011 results just this past Thursday and they came in with a solid beat: .25 EPS vs .16 expected. The positive news along with the subsequent rally have provided some relief for PCS investors. The stock got slammed back in August 2011 when the company had a bad earnings miss. Here's the line chart of the stock price going back to the beginning of 2011:

Click here to go to the live chart.

This next chart shows the same data as the one above alongside EPS estimates and acutals (going back to 2008 and in terms of % change):

Click here to go to the live chart.
Rumors had been swirling that PCS was a potential takeover target for Sprint (ticker: S) however talks broke down just this past week. More details from Bloomberg:
The transaction would have valued MetroPCS at about $8 billion, said one of the people, who asked not to be identified because the discussions were private. It was rejected by Sprint’s board, this person said. The transaction included a 30 percent premium, CNBC reported yesterday.
Oddly enough, PCS shot up over 10% in extended trading when it was announced that talks had been broken off.

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