*NEWS*LEXMARK:MORE COMPANY TAKEOVER TALKS

  • toner-news-big-banner-nov-8
  • 161213_banner_futorag_902x177px
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 2toner1-2
  • Print
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • big-banner-ad_2-sean
  • 4toner4
  • facebook-tonernews-12-08-2016
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 536716a_green_sweep_web_banner_902x17712
  • futor_902x177v7-tonernew
Share

*NEWS*LEXMARK:MORE COMPANY TAKEOVER TALKS

 user 2007-10-15 at 10:15:00 am Views: 56
  • #19013

    Lexmark shares up on takeover talk and earnings
    Oct
    , 2007 CHICAGO  – Shares in computer printer maker Lexmark
    International Inc  rose nearly 7 percent on Wednesday and its options
    volume surged, fueled by optimism about the company’s upcoming
    quarterly earnings and renewed takeover speculation.Shares of Lexmark,
    based in Lexington, Kentucky, gained $2.74 to close at $43.80 on the
    New York Stock Exchange after earlier hitting an intraday high of
    $44.15. The company is due to report third-quarter results on October
    23.In all, 26,192 calls compared to 2,281 puts, traded in Lexmark, 12
    times the normal volume, according to market research firm Track
    Data.Jon Najarian, co-founder of Web information site optionmonster.com
    in Chicago, said that in addition to bullishness about the company’s
    earnings prospects, a rumor that Dell Inc  founder and Chief Executive
    Michael Dell might be looking at the company, was circulating.

    A
    Lexmark spokesman said the company does not comment on rumors or
    speculation. A spokesman for Dell, the world’s No. 2 personal computer
    maker, also said it does not comment on speculation.Investors focused
    on the October, November and January calls, giving them the right to
    buy Lexmark shares at $45 a piece, option analysts said.Option players
    typically use equity calls, which allow them to buy the company’s
    shares at a given price and time, to speculate on further strength in
    the stock.”We have seen buying in the October, November and January
    calls at the $45 strike as investors position themselves for upside
    share price movement,” said Rebecca Engmann Darst, equity options
    analyst at Interactive Brokers Group.She noted the strong call interest
    could be due to positioning ahead of earnings and the return of
    takeover rumors that surrounded Lexmark as recently as June.”The
    November $45 calls are the most interesting to us as they give the
    owners 38 days rather than just 10 days to be right” if the takeover
    speculation leads to a deal, Najarian said. October calls expire on
    October 19.The November calls, which had volume of 8,600 contracts,
    cost $2.30 a contract, up $1.55 on the day.The flurry of options
    activity was accompanied by a rise in Lexmark’s overall option implied
    volatility, which measures the expected magnitude of share movement
    based on options prices.It stood at around 47.8 percent, up from 38.8
    percent on Tuesday, Darst said.Both Paul Foster, options strategist at
    Web site theflyonthewall.com, and Darst said the high volatility
    indicated option participants expected more price swings in the stock.