Michael’s Makes a Crafty Return, Au Revoir $8.9 Billion and Swoosh Go the Earnings

So crafty…

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Arts & crafts chain Michael’s (MIK) made its rather subdued return to Wall Street today with its $472 million IPO. After going private in 2006, the company returned offering up 27.8 million shares for $17.00 a pop, priced at the lower end of its predicted range. The Texas based company is the largest art& crafts chain counting Aaron Brothers amongst its holdings. With over 1200 stores in the US, Michael’s had a net income of $243 million, an increase from $200 million. Apparently the crafts industry is quite popular. While the company is valued at $3.45 billion, it’s also carrying a $3 billion debt, which is why Wall Street wasn’t giving it the big warm welcome it gave to other IPO’s like yesterday’s GoPro debut.

Busted…

Image courtesy of anankkml/FreeDigitalPhotos.net

Image courtesy of anankkml/FreeDigitalPhotos.net

France’s biggest bank, BNP Paribas, is copping a guilty plea to the tune of $8.9 billion. The official announcement is expected to come Monday. BNP helped countries including Iran, Sudan and Cuba, major human rights violators, avoid US sanctions and assisted tyranny by helping to facilitate $30 billion worth of transactions. Tres uncool. Apparently 12 employees are making an exit from the bank with no charges against the individuals. And while the bank should technically lose its license to operate in the US, the government is instead going to punish them (besides the multi-billion dollar fine) by not allowing the bank to do dollar clearing – an essential component for dealing with international clients. While that seems minor, it actually puts a huge dent in their oil and gas divisions, which is just as well, since those divisions were the ones primarily involved in the illegal transactions.

Swoosh…

Image courtesy of kibsri/FreeDigitalPhotos.net

Image courtesy of kibsri/FreeDigitalPhotos.net

Nike announced its earnings yesterday and raced way past expectations. While growth was seen in most of its divisions, it was its men’s football (or as us heathen Americans call it, soccer) division that really soared. Men’s football gear saw an 18% gain, certainly with a little help from its soccer…uh I mean football shoe dubbed Nike Mercurial Superfly (which to me sounds more like something you’d order in a bar). Shares of Nike rose over 3% in after-hours trading to $79.37. Nike is particularly popular with our neighbors across the pond who account for a majority of Nike’s growth. And while the athletic brand isn’t a World Cup sponsor, you’d never know it because it’s sponsoring more teams than any other brand, including, of course, the men’s US Soccer team.

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2 responses to “Michael’s Makes a Crafty Return, Au Revoir $8.9 Billion and Swoosh Go the Earnings

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