After-Market News: WAIR, GME, CADX, DVA

Technology Stocks News 10

Wesco Aircraft Holdings Inc. (NYSE:WAIR) has closed on its purchase of Haas Group Inc., a privately held supply-chain management firm previously owned by The Jordan Company LP. WAIR funded the $550 million transaction using proceeds from a new, $525 million syndicated term loan added to the company’s existing senior secured credit facilities as well as a $40 million draw under WAIR’s revolving credit facility and available cash.

The new term loan will carry a variable interest rate of 1.75% to 2.5% and matures on Feb. 28, 2021. WAIR shares are up 0.2% in late trade at $21.71 each, recouping a portion of the stock’s 0.6% decline during today’s regular session.

GameStop (NYSE:GME) closed the regular session up 0.1%, trimming its 0.38% gain in the pre-market session. Longbow Research downgraded the shares to underperform from neutral, with a price target of $30.

In 11 analyst-driven pre-market moves MidnightTrader has tracked, GME has seen its pre-bell trade widen in the same direction in the following regular session in four events, narrowing or reversing in five and going from flat to higher twice.

Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) reports a Q4 loss of $0.05 per share, including special items, compared to a net loss $0.25 per share the year prior. Revenues for the quarter were $33.3 million, an increase of 95% from the $17.1 million in Q4 2012. If comparable, analysts polled by Capital IQ were expecting a loss of $0.04 per share on revenues of $32.2 million.

DaVita HealthCare (NYSE:DVA) gains late Friday, subject of a largely favorable Barron’s write-up that says Warren Buffett’s Berkshire Hathaway’s recently increased and already significant stake in DVA should pay off. The aging U.S. population and the growing prevalence of conditions that cause kidney failure, such as diabetes and high blood pressure, will fuel future demand for dialysis, Barron’s notes.

And that bodes well for DaVita’s future, making it a smart health-care play for patient investors. “Granted, with earnings per share expected to grow 7.5% from 2014 to 2015, DaVita isn’t cheap at 18 times forward earnings, neither historically nor compared to the broader industry. Many analysts suggest waiting for a lower entry point to the stock, which has surged 55% over the last two years,” Barron’s said.

 

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