Five Stocks that Are Registering Gains on Wednesday for Various Reasons

Shares of KLA-Tencor Corp (NASDAQ:KLAC), Applied Materials, Inc. (NASDAQ:AMAT), Tupperware Brands Corporation (NYSE:TUP), and Intuitive Surgical, Inc. (NASDAQ:ISRG) are surging for various reasons on Wednesday. Let’s analyze why.

Wall Street Bull

Wall Street Bull

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KLA-Tencor Corp (NASDAQ:KLAC) is up by 23.2% after the company announced Lam Research Corporation (NASDAQ:LRCX) will acquire it for $32 in cash per share and 0.5 shares of Lam Research for each share of KLA-Tenor. The transaction values KLA-Tencor Corp (NASDAQ:KLAC) at $67.02 per share based on the closing price of Lam Research on Tuesday. There have been a spate of technology mergers in recent quarters as the era of cheap debt comes to an end. Lam’s acquisition of KLA-Tenor is just the latest in a long line of deals that should consolidate the industry and reduce oversupply. Management estimates the deal will yield $250 million in annual cost savings within two years of the deal’s close. The deal could also give the combined company more pricing power over its customers.

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Applied Materials, Inc. (NASDAQ:AMAT) inched up by 1% after Intel Corporation (NASDAQ:INTC) announced it will spend up to $5.5 billion on flash memory investments in China ‘over the coming years’. Applied Materials, Inc. (NASDAQ:AMAT) helps companies make the latest and greatest NAND flash technology and will likely garner a substantial part of Intel’s additional spending. Shares of the company haven’t done very well, down over 33% year-to-date, but trade at a forward P/E of 12.17. Of the around 730 elite funds we track, 65 funds owned $2.47 billion of the company’s shares (accounting for 10.50% of the float) on June 30, versus 81 funds and $4.36 billion on March 31. Larry Robbins‘ Glenview Capital held 21.28 million shares of the company at the end of June.

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On the next page, we analyze why Tupperware and Intuitive Surgical are surging.