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News Review – Enerplus Corp (USA) (ERF), Avid Technology Inc. (AVID), Constellium NV (CSTM)

U.S. stocks advanced Wednesday for a third straight day, led by gains in energy and materials stocks as oil prices jumped.

Oil futureswere soaring close to 4%, continuing their rebound off multiyear lows after U.S. crude inventories posted an unexpectedly large decline last week and as OPEC said it expects the price of its basket of crudes to rise to $70 a barrel in 2020. Prices — and energy stocks — could get another jolt around 1 p.m. Eastern Time, when rig-count data from Baker Hughes is released.

Investors also welcomed economic reports that pointed to a slow but steady improvement in consumer spending.

The S&P 500 climbed 18 points or 0.9% to 2,057, with all 10 main sectors trading in positive territory, led by energy, which boasted a 3% gain thanks to a jump in crude-oil prices.

The Dow Jones Industrial Average gained 132 points, or 0.8%, to 17,551, while the Nasdaq Composite rose 33 points or 0.7%, to 5,034.

“Economic data came in slightly better than expected and suggest that consumers are in reasonably good shape,” said Michael Arone, chief investment strategist at State Street Global Advisors’ US Intermediary Business.

Arone said sectors that are dependent on consumer spending, such as health care, technology and consumer discretionary plays, are likely to benefit from continued improvement in the economy.

Wednesday’s gains follow an upbeat session on Tuesday, when investors largely brushed off weak economic data. Trading was characterized by swings in and out of positive territory on seasonally light volume in the run-up to Christmas on Friday.

Enerplus Corp (USA) (NYSE:ERF) rose 17.65% or 0.54 points on Wednesday and made its way into the gainers of the day. After trading began at $3.17 the stock was seen hitting $3.61 as a peak level and $3.15 as the lowest level. The stock ended up at $3.60. The daily volume was measured at 2.88 million shares. The company has a market cap of $2.01 billion. The mean estimate for the short term price target for ERF stands at $7.45 according to 6 Analysts. The higher price target estimate for the stock has been calculated at $9.33 while the lower price target estimate is at $6.46. On Apr 20, 2015, the shares registered one year high at $13.16 and the one year low was seen on Dec 18, 2015. The 50-Day Moving Average price is $4.53 and the 200 Day Moving Average price is recorded at $6.09. Enerplus Corp (USA) (NYSE:ERF) on December 21, 2015 announced completion of the previously announced divestment of a portion of its non-operated interests in North Dakota for cash proceeds of approximately $80 million , after closing adjustments. These interests comprise less than 2% of Enerplus’ net acreage in North Dakota . The proceeds from this transaction will be used to reduce the Company’s outstanding bank debt. This divestment allows Enerplus to increase its focus on its operated North Dakota acreage.

For How Long ERF will Fight for Profitability? Read This Trend Analysis report

Avid Technology Inc. (NASDAQ:AVID) witnessed a rise in the market cap on Wednesday as its shares jumped 17.25% or 1.08 points. After the session commenced at $6.28, the stock reached the higher end at $7.44 while it hit a low of $6.28. With the volume soaring to 1.25 million shares, the last trade was called at $7.34. The company has a 52-week high of $18.10. The company has a market cap of $247.30 Million and there are 39.29 million shares in outstanding. The 52-week low of the share price is $5.77. AVID has dropped -10.16% during the last 3-month period. Year-to-Date the stock performance stands at -48.35%. The stock price is expected to reach $11.83 in the short term. The number of analysts agreeing with this consensus is 3. The higher estimate for the short term price target is at $16.00 while the lower estimate is at $8.50. On Jun 8, 2015, the shares registered one year high at $18.10 and the one year low was seen on Nov 6, 2015. The 50-Day Moving Average price is $6.69 and the 200 Day Moving Average price is recorded at $9.65. Avid Technology Inc. (NASDAQ:AVID) on December 23, 2015 announced that Sinclair Broadcast Group, Inc., the largest television station operator and leading local news provider in the United States, has chosen to standardize on Avid’s MediaCentral™ Platform, the centerpiece of the Avid Everywhere™ vision, to transform content creation and distribution workflows in every one of its 64 local news producing stations. This agreement represents a record-setting contract for Avid where the Company will deliver advanced end-to-end newsroom production and content management solutions under a ten-year comprehensive agreement that uniquely addresses Sinclair’s business needs, and in the process, replaces legacy technology from other vendors.

“Moving to a common production platform across all of our news markets provides us the platform to create a content sharing news community across Sinclair increasing efficiency and productivity,” said Scott Livingston, Vice President of News, Sinclair Broadcast Group. “Having defined and more frequent technology upgrade cycles will enable us to keep our newsrooms current across the enterprise and allow us to respond to rapid changes like new digital distribution models in a more cost effective way.”

Operating efficiency is a major pressure point for media companies, as rapidly evolving technology and audience behavior make staying at the forefront of technology essential.  Sinclair expects to realize meaningful economic benefits through this agreement by standardizing on the Avid platform, driven by efficiencies from a standardized technology and operational footprint across all of its stations. This not only enables Sinclair to keep its newsroom technology consistent, continuously refreshed and on the leading edge across the enterprise, but also provides much greater flexibility in responding to industry changes and new business opportunities.

For How Long AVID Gloss will Attract Investors ?  Find out via this report

Constellium NV (NYSE:CSTM) traded up 16.51% during trading on Wednesday, hitting $8.92. The stock had a trading volume of 2.09 million shares. The firm has a 50 day moving average of $7.89 and a 200-day moving average of $8.20. The stock has a market cap of $791.79 Million. CSTM has surged 11.89% during the last 3-month period. Year-to-Date the stock performance stands at -46.74%. The stock price is expected to reach $11.37 in the short term. The number of analysts agreeing with this consensus is 9. The higher estimate for the short term price target is at $19.56 while the lower estimate is at $7.03. On Mar 20, 2015, the shares registered one year high at $20.81 and the one year low was seen on Oct 30, 2015. Constellium NV (NYSE:CSTM) on December 9, 2015 announced that its indirect wholly-owned subsidiary Wise Alloys LLC (“Wise”) is exploring alternatives to refinance its existing Asset Based Lending (“ABL”) facility, including engaging in discussions with both current and potential new lenders.

Wise currently intends to seek to refinance its existing ABL with a facility that will have a maturity of five years and will be secured by the same collateral as the existing ABL, but which will not be guaranteed by Constellium.

This is one of the actions in connection with the ongoing exploration of alternatives for Wise, which Constellium announced on November 5, 2015.

There can be no assurance as to when or whether Wise will refinance its existing ABL facility, and the terms of any such refinancing are not agreed at this time.  Neither Wise nor Constellium intends to further update this disclosure until such time as the definitive terms of any refinancing are agreed.

Will CSTM Continue To Move Higher? Find Out Here