The top pre-market NASDAQ Stock Market movers are: Parlux Fragrances, Makita, Siliconware Precision Industries, Amazon.com, and Apple. The top pre-market NASDAQ Stock Market losers are: Sears Holdings, RAM Energy Resources, ZAGG, QUALCOMM, and Research In Motion.
Parlux Fragrances Inc. (PARL) stock jumped 94.52 percent to $6.75 in pre-market trading. Perfumania Holdings, Inc. (PERF) said it agreed to buy all of the outstanding shares of Parlux Fragrances in a transaction valued at about $170 million based on Perfumania's closing stock price of $19.55 per share Thursday. The transaction has been unanimously approved by the independent committees of the Boards of Directors of both companies. The merger is expected to close in the first half of 2012. Based on Perfumania stock price of $19.55 and depending on the stockholder elections, the merger agreement values a share of Parlux stock at between $7.91 and $8.55.
Parlux's closing market price on December 22 was $3.40 per share, and there were about 20.77 million shares of Parlux common stock outstanding on that date. Parlux stockholders would be entitled to elect between mixed stock and cash consideration and principally stock consideration under the merger agreement. Parlux stockholders may elect to receive, for each share of Parlux common stock that they own, either (i) $4.00 in cash plus 0.20 shares of Perfumania common stock or (ii) 0.53333 shares of Perfumania common stock, both of which are subject to certain adjustments in the merger agreement. The maximum amount of cash that will be paid as merger consideration is $61.9 million and the maximum number of Perfumania shares issuable in the merger is 5,919,052 which amounts are subject to adjustments in certain circumstances.
Makita Corp. (MKTAY) stock gained 1.29 percent to $31.8456 in pre-market trading.
Siliconware Precision Industries Co. Ltd. (SPIL) stock moved up 0.69 percent to $4.38 in pre-market trading.
Amazon.com Inc. (AMZN) stock moved up 0.46 percent to $178.10 in pre-market trading.
Apple Inc. (AAPL) stock moved up 0.18 percent to $404.06 in pre-market trading.
Sears Holdings Corp. (SHLD) stock fell 9.49 percent to $41.50 in pre-market trading. The company said it expects fourth quarter adjusted EBITDA - a bottom line measure - to be less than half of what it earned in the prior-year quarter, reflecting lower sales, continued margin pressure and higher expenses. The broadline retailer also announced certain cost reduction actions, which include the closure of 100 to 120 Kmart and Sears full-line stores. For the fourth quarter, the company expects consolidated adjusted EBITDA to be less than half of last year's $933 million. Sears will also take a non-cash charge of between $1.6 billion and $2.4 billion in the quarter, stemming from valuation allowance on certain deferred tax assets and goodwill impairment charges.
Topping the list of planned actions is store closure and inventory reduction activities, which are expected to reduce peak inventory in 2012 by $500 million to $580 million and reduce peak borrowing need by $300 million to $350 million in 2012. As of December 23, the company had $483 million of borrowings outstanding on its domestic revolving credit facility. The closure of 100 to 120 Kmart and Sears full-line stores is expected to generate $140 million to $170 million of cash, as net inventory in these stores is sold.
RAM Energy Resources, Inc. (RAM) stock declined 2.43 percent to $2.41 in pre-market trading.
ZAGG Inc. (ZAGG) stock decreased 2.37 percent to $8.25 in pre-market trading. The company said Horizons Ventures, Ltd., a Hong Kong investment firm controlled by Li Ka-shing, purchased a $3 million stake in HzO as part of a preferred equity investment. ZAGG owns a significant stake in HzO, a Utah-based company that provides WaterBlock technology for consumer and industrial electronic assemblies. ZAGG originally acquired HzO in 2009, then spun off HzO Inc. as a private independent company to improve and commercialize its WaterBlock technology.
QUALCOMM Inc. (QCOM) stock moved down 0.70 percent to $54.25 in pre-market trading.
Research In Motion Ltd. (RIMM) stock moved down 0.40 percent to $13.86 in pre-market trading.