Orlando, FL -- (SBWIRE) -- 09/05/2013 -- Hot Stock Profits provides investors and traders with valuable trading tools and content as well as micro-cap stock alerts via eMail and text messages. To Join Our Text Message Alerts Service Just Text The Word Stocks To 555888 From Your Cell Phone. Our Focus Today Is On SolarCity Corp(NASDAQ:SCTY), Pandora Media Inc(NYSE:P).
SolarCity Corp(NASDAQ:SCTY) is planning to raise $223.5 million by offering shares and selling convertible notes.
Is SCTYA Strong At The CMP? Get Advantage Of Our Free Trend Analysis Here
The third-largest U.S. solar company plans to offer 2.8 million shares at $33.69 each. Goldman Sachs Group Inc., Credit Suisse Group AG and Bank of America Corp. who are underwriting the offer, have an option to purchase an additional 420,000 shares within 30 days.
The company is concurrently selling $100 million in convertible notes. This may go up to $115 million if the underwriters exercise an overallotment option.
According to the company’s SEC filing, CEO Lyndon Rive and Chairman Elon Musk will buy 560,000 shares from the underwriters.
The number of SolarCity shares outstanding post the offering will be 81.08 million.
Meanwhile, a few analysts on the Street believe that Pandora Media Inc(NYSE:P) has a flawed business model, although results look impressive on the face of it.
Is P A Good Buy After The Recent Price Movement? Find Out Here
Revenue at the Internet-radio company rose 55% from last year. Listener hours rose by 18% to about 3.9 billion while active users grew by 30% to 71.2 million.
Seemingly good numbers until one starts looking at the costs. Total costs rose by 55%, causing the company to post a slightly wider loss compared to last year. The share count has also risen.
To add to that, the company has lifted its 40-hour limit on non-subscribing mobile users, probably due to competition. New players like Spotify, Slacker Radio, and several start-ups have stormed into the market. And with Apple set to launch iTunes Radio this month, the competition scene will worsen.
The silver lining is that iTunes Radio will not be available on Android devices, although it will be available on PCs. iTunes Radio will also have some features that stand out: Siri integration and the facility to buy songs and add them to one’s iTunes collection.
Although iTunes Radio will have an ad- free version, users who subscribe to iTunes Match can listen ad-free. And the iTunes Match costs just $24.99 per year, lower than Pandora's ad-free subscription of $36 per year.
Pandora surely has tough times ahead.
Join Our Mobile SMS Alerts By Texting Stocks To 555888
HotStockProfits.com continuously monitors and scans the markets for day trading and swing trading signals on NASDAQ, NYSE, AMEX, OTCBB and Pink Sheet companies for its free e-newsletter subscribers.
Disclosure: HotStockProfits.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment. Please visit HotStockProfits.com website, for complete risks and disclosures.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)