Boston, MA 02/18/2014 (wallstreetpr) – Newcastle Investment Corp. (NYSE:NCT) has completed the process of spinning off its New Media division as a separate publicly traded company. It will debut on NYSE. Newcastle had earlier successfully spun off New Residential in May 2013 as a strategic move to capture the upside in the residential housing market. Newcastle Investment Corp. (NYSE:NCT) will transfer the assets of 443 newspapers and more than 350 websites. These news channels are largely regional in flavor and the new company will become a key player in the market.
GNC Holdings Inc (NYSE:GNC) lost about 15% of its value during the trading session on February 14, 2014 as it reported disappointing fourth quarter results and the management gave weak guidance for 2014. The competition is heating up in the segment and the company is spending more on promotions. The company could record only $613.7 million in revenues against expectation of $631.5 million. Operating income also fell by 1% on y-on-y basis. The company also reported adjusted earnings of $0.63 per share. The company expects earnings of $3.18-$3.24 for the full fiscal 2014. This is below analysts’ expectation of $3.44.
Shares of Galena Biopharma Inc (NASDAQ:GALE) also tanked by more than 14% to close at $3.73. The company is under investigation after it emerged that it had tried to influence shareholders through sponsored articles. Galena hired the services of ‘DreamTeam Group’ to increase “investor awareness”. These activities consisted of blogs and articles mentioning positive things about the company. It also appears that the management sold some quantities of shares around the same time. Investor confidence in the company will be shaken It proved correct as such activities amount to artificially jacking up the share prices to benefit some insiders. The company is already facing difficult times financially as net income continues to fall along with weak operating cash flows. Both the parties have refused to comment on the allegations.
