Market Overview

Benzinga's Microcap Movers for Thursday May 17, 2012


Below are highlights from Benzinga's daily coverage of microcap securities making big moves:

Media General

Shares of Media General (NYSE: MEG), the Richmond, VA media company, rose 33.12% Tuesday on almost 17 times the average daily volume.

Media General announced Thursday that it has signed agreements with Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) for the purchase of newspapers and new financing. A subsidiary of Berkshire Hathaway, BH Media Group, will purchase all of the newspapers owned by Media General, with the exception of the Tampa group, for $142 million in cash. Media General said it is in discussions with other prospective buyers for its Tampa print assets.

Under a separate credit agreement, Berkshire Hathaway will provide Media General with a $400 million term loan and a $45 million revolving credit line. The new loan will be used to fully repay the company's existing bank debt due March 2013 and will mature in May 2020. In conjunction with this, Media General will issue Berkshire Hathaway penny warrants for approximately 4.6 million Class A shares, which represents 19.9 percent of Media General's existing shares outstanding. In addition, Berkshire Hathaway has the option to nominate a director to Media General's Board of Directors.

Media General closed at $4.18 on Thursday.

Shares of (NASDAQ: BIDZ), the Culver City, CA online retailer, traded flat Thursday on light volume. announced late Thursday that it has entered into a definitive merger agreement with Glendon Group to be acquired for $0.78 per share in cash. This per share price represents a premium of 59.2% over the Company's closing price of $0.49 per share, on May 16, 2012, the last trading day prior to the execution of the merger agreement, and a premium of 37.7% over the Company's volume-weighted average of the closing prices over the 30 consecutive trading days including and immediately preceding May 16, 2012.

Under the Merger Agreement, the Company is entitled to actively solicit alternative transaction proposals until 11:59 p.m. New York City time on June 25, 2012. After that time and until 11:59 p.m. New York City time on July 9, 2012, the Company may continue negotiations with any person who has submitted a written alternative acquisition proposal by 11:59 p.m. New York City time on June 25, 2012 or with any group in which at least 50% of the equity or other financing of such group includes members of any group that submitted a bona fide written alternative acquisition proposal by 11:59 p.m. New York City time on June 25, 2012. closed at $.49 on Thursday, but traded sharply higher after-hours.

Trans World Entertainment

Shares of Trans World Entertainment (NASDAQ: TWMC), the Albany, NY specialty music and video retailer, rose 17.53% Thursday on almost 7 times the average daily volume.

Trans World Entertainment reported financial results for its first quarter ended April 28, 2012 on Thursday. For the first quarter of 2012, the Company reported a $5.3 million increase in net income to $2.8 million, or $0.09 per diluted share, compared to a net loss of $2.5 million, or a loss of $0.08 per diluted share, for the same period last year.

The first quarter marked our ninth consecutive quarter of improved operating results," said Robert J. Higgins, Chairman and Chief Executive Officer of Trans World Entertainment. "We were able to follow up our strong fiscal 2011 performance, with a terrific start to 2012. Our comp sales increase reflects our ability to drive business with a continued commitment to offering our customers a broad selection at great value coupled with a positive shopping experience. In addition, we recently amended our credit agreement providing us with a five year, $75 million facility at reduced interest rates, lower costs and providing for other favorable terms. The amended credit facility supports our ability to fund strategic initiatives and growth over the next five years. We look forward to continued success for the remainder of fiscal 2012 and beyond."

Trans World Entertainment closed at $2.95 on Thursday.

The information in this article is taken from public sources, press releases, and websites that cannot always be verified. Please note that investing in microcap stocks is highly speculative. The companies mentioned here are for information purposes only. Benzinga makes no claim as to the suitability of these stocks as an investment. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: Long Ideas M&A News Short Ideas Small Cap After-Hours Center Movers Trading Ideas


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