Major Movers on June 12; CTB, ULTA, GIMO, RMBS, HPQ

Shares of Cooper Tire & Rubber Company (NYSE: CTB) catapulted about 40% by afternoon trade after the Ohio based Company received a buyout bid of $2.5 billion from an Indian tire manufacturer Apollo Tiers. Apollo has agreed to pay $35 in cash, which implies 42.5% premium over the Tuesday’s closing stock price. Although Apollo is one of the prominent tire makers in India, it is relatively unknown entity in America. If the deal materializes then it will gobble up the world’s 11th largest tire company in terms of revenue. Besides, the acquisition would also allow Apollo to gain traction in the world’s latest automobile market. If the deal is approved, the merged entity would become the seventh largest tire making company in the world, having operations in four continents with annual sales of nearly $6.6 billion. Shares of Ulta Salon Cosmetics & Fragrances Inc. (NASDAQ: ULTA) rallied about 17% by afternoon trade. The beauty product retailer said late last evening that fiscal first quarter income jumped 20% as revenue continued to grow at double-digit percentage. For the quarter ended May 4, Ulta Salon posted a profit of $41.8 million or 65 cents a share compared to a net income of $34.9 million or 54 cents a share, in the same period of last fiscal year. Revenue climbed 23% to $582.7 million. The results exceeded Company’s own guidance. In March, Ulta Salon projected earnings of 60 cents to 63 cents a share on revenue of $568 million to $577 million. Analysts were expecting earnings of 62 cents a share on revenue of $576 million. Comparable-store-sales, a key gauge on retail chain’s performance, rose 6.7% in the fiscal first quarter. Gross margin shrank to 35% from 36%, in the same period of last fiscal year. For the fiscal second quarter, Ulta Salon is expecting earnings to come in the range of 64 cents to 67 cents a share on sales of $579 million to $589 million. Analysts polled by Thomson Reuters had forecasted for earnings of 68 cents a share on revenue of $590 million. Shares of Gigamon Inc. (NYSE: GIMO) skyrocketed 36% by afternoon trade. Gigamon, which makes data traffic management software made its IPO on Wednesday. The surge in the stock price in just few hours after the IPO underpins investors’ growing faith in start-ups that makes enterprise software. The Company sold 4.5 million shares in the IPI while the rest was sold by shareholders. Shares of Rambus Inc. (NASDAQ: RMBS) climbed about 5% by afternoon trade after the technology solutions company said on Tuesday that it settled a patent litigation with SK Hynix, a South Korean chip maker for $240 million. Rambus also said that it entered a 5-year license agreement with S K Hynix, which allows it to use its technology. Shares of Hewlett- Packard Company (NYSE: HPQ) gained about 3.70% by afternoon trade. The Company’s Chief Executive, Meg Whitman, while speaking with CNBC on Wednesday said that it was “still possible” for the beleaguered computer maker to post revenue growth in fiscal 2014.