Friday’s Headline-Making Stocks: Monsanto (MON), Apple (AAPL), Herbalife (HLF), More

A News Story Shines a Light on Apple TV

Apple Inc. (NASDAQ:AAPL) executive Eddy Cue recently spoke with The Hollywood Reporter, and although the company doesn’t plan to buy a Hollywood content studio or directly compete against Netflix, Inc. (NASDAQ:NFLX), Hollywood agents are apparently “very, very excited” about Apple’s future online TV plans. In the article, Mr. Cue says that Apple’s goal is to make Apple TV “a lot better box than a cable box” and that Apple is trying to build a platform that allows anyone to transmit content to Apple consumers. At this stage, according to Mr. Cue, Apple “is only going into the content business [with projects] that we think are really tied to our products. Right now, that’s Apple Music.”

Given that Apple has been rumored to have held talks with Time Warner Inc (NYSE:TWX), the only-product-related stance could potentially change if the economics of online video change. Apple does need another product to help diversify it from the iPhone and the film/television content and distribution sector is a huge industry. Of the 766 active funds that we track, 152 were long $14.82 billion worth of Apple Inc. (NASDAQ:AAPL) shares as of March 31, which accounted for a modest 2.50% of the float.

AMC Considers Higher Bid

According to Reuters, AMC Entertainment Holdings Inc (NYSE:AMC) is reportedly considering raising its bid for Carmike Cinemas, Inc. (NASDAQ:CKEC). Some Carmike shareholders are not satisfied with AMC’s $30 per share bid, and want a higher price. Although AMC has previously said that the economics of the merger would not be as great at a price above $30, AMC does seem to want to be a consolidator of the industry. Any bid increase could be incremental, however, and there is no guarantee that AMC won’t walk away instead. Carmike has postponed its decision to approve the merger by ten days, to July 25 to give AMC more time to make an updated bid. 15 funds in our system had a long position in AMC Entertainment Holdings Inc (NYSE:AMC) on March 31, while 26 funds were long Carmike Cinemas, Inc. (NASDAQ:CKEC) at the end of the first quarter.

Disclosure: None