SARASOTA, Fla., Sept. 30, 2004 (PRIMEZONE) -- The following is an investment opinion issued by eLocity Inc.
Sciax Corp (Pink Sheets:SCXC), Kmart Holding Corp. (Nasdaq:KMRT) and Red Hat Inc. (Nasdaq:RHAT).
Small cap/special situation analyst Gil Oren of DBnewswire.com has initiated coverage of Sciax Corporation (Pink Sheets:SCXC). Sciax Corp. is an emerging leader in defense imaging systems for law enforcement and military personnel engaged in counter-terrorism and other special security operations. Sciax Corp reported on Monday after the closing bell on two more sales to BP Canada, a large oil and gas industry customer, for endoscope equipment used in the visual inspection of large reciprocating engines.
On the Nasdaq --
Kmart Holding Corp. (Nasdaq:KMRT)
Sears, Roebuck & Co. (NYSE:S) announced Wednesday that it has closed the acquisition of ownership or leasehold interest in 50 stores from Kmart Holding Corp. for $575.9 million. Sears said that it has paid 30% of the overall purchase price for the 50 properties and added that 70% will be paid upon the company taking possession of the stores. The company added it will take possession of the stores in spring 2005 and the majority of the stores are expected to be converted by fourth quarter 2005 to Sears nameplates.
Sears said the newly acquired stores are located primarily in large, densely populated markets with home, family and income demographics that are attractive to the company, and added that it will also acquire additional off-mall locations from Wal-Mart. Sears will make lease payments to Wal-Mart under subleases for six Wal-Mart stores, as previously announced on June 30. Sears noted that these stores are located in mid-size markets that fit well into Sears' market and demographic profile,
KMRT closed Wednesday at up 2.21 at $88.06, while S ended the session at $39.47, up 0.36.
Red Hat Inc. (Nasdaq:RHAT)
Linux computer operating system company Red Hat Inc. announced after the bell Wednesday that its board of directors had authorized the repurchase of up to $100 million in stock. The company said it believes the stock is undervalued and the buyback will help offset dilution from employee stock plans.
The buyback will be funded with the company's working capital, Red Hat said. As of Aug. 31, Red Hat had cash and investments of about $997.7 million.
The company had about 183 million shares outstanding as of May 31.
RHAT closed Wednesday's regular trading session up .30 at $12.73, and was trading higher at $13.05 after the release in the after hours market.
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