Friday, November 2, 2012

Double Digit Winners: Radian Group Inc.(NYSE:RDN), Jda Software Group Inc (NASDAQ:JDAS)

Shares of Jda Software Group Inc(NASDAQ:JDAS) rose by $6.61 or 17.33% to $44.76 in Thursday’s session with the news of acquisition by its rival RedPrairie for about $1.9 billion in cash.
The $45 per-share offer represents an 18 percent premium over JDA's Wednesday close.
The third quarter results for JDA was lower than expected as software and subscription revenue slipped 18 percent on weak license sales in Europe and to manufacturers in North America.
The consulting services revenue fell 4% to $64.3 million mainly due to reduced work from a customer in the Asia-Pacific region.
The deal is expected to get over by end of 2012 creating a company with revenue of over $1 billion which is to be led by JDA's Brewer, the companies said.
Credit Suisse and New Mountain Capital will fund the deal by giving loan to the company.
Shares of the company were up 12.505 in Wednesday’s session.
Stocks of Radian Group Inc.(NYSE:RDN)  rose $5.37, up 68 cents or 14.50% in the previous trading session as the company posted its first quarterly profit this year.
The company wrote $10.6 billion of new mortgage insurance in the third quarter, a rise by 159% in comparison to last year.
However the third quarter net income fell by almost 92% to $14.3 million, or 11 cents per share in comparison to last year.
The third quarter profit included net gains on investment of $84.7 million, a rise by 4% in comparison to last year.
Radian Guaranty's risk-to-capital ratio improved to 20.1:1 as of the end of the September quarter from 21:1 as of the end of June. Most U.S. states allow a maximum risk-to-capital ratio of 25 to 1.
The bankruptcy of PMI Group Inc and the forced stop writing of new insurance of Old Republic Inc led to the gain in market share of Radian Inc.

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