Morning Buzz: Silicon Image, Inc. (SIMG), Microsoft (MSFT), SeaDrill Limited (SDRL), ProShares (SQQQ), CIT Group (CIT), Advaxis (ADXS)

Silicon Image, Inc. (SIMG) is up 23% % in pre-market trading Tuesday on news that the company will be acquired by Lattice Semiconductor (LSCC) in an all-cash tender offer of $7.30 per share. SIMG said the offer represents an equity value of $600 million, or $450 million on an enterprise value basis.

Darin G. Billerbeck, Lattice Semiconductor’s President and CEO commented, “This is a truly transformative event for both Lattice Semiconductor and Silicon Image. For the first time in the semiconductor industry, a single company will combine the design flexibility and time to market benefits of FPGAs, with the highly integrated, function and cost optimization benefits of ASSP solutions.”

The transaction represents a 23.7% premium to SIMG’s closing pps on January 26th.

SIMG shares recently gained $1.37 to $7.26. In the past 52 weeks, shares of Sunnyvale, Calif.-based wireless connectivity solutions provider have traded between a low of $4.10 and a high of $7.33. Shares are up 5.92% year-over-year, and 6.88% year-to-date.

Microsoft Corp. (MSFT) slid more than 8% to $43.14 in early trade following the firm’s Q215 earnings report and forecast for slower than expected increase in cloud-based revenue, as well as a drop in commercial licensing sales. The software giant reported quarterly profit of $0.71 per share, in line with estimates but 7 cents lower than in the year-earlier period. Revs for the quarter ended Dec. 31’14, came in at $26.5 billion, 8% higher yoy versus consensus of 7%. The increase was helped by the firm’s recent acquisition of Nokia’s mobile business. Meanwhile, gross margin and operating income were $16.3 billion and $7.8 billion, respectively. Commercial licensing revs fell 2% yoy, primarily due to falling revenue from Office commercial. The company also forecast the current quarter’s revenue lower than consensus by $3 billion.

In other MSFT news this morning, analysts at JP Morgan (JPM) downgraded the name to ‘Neutral’ from ‘Overweight’ today and lowered their 12-month base case estimate to $47 from $53. Similarly, MKM Partners downgraded the stock from ‘Buy’ to ‘Neutral’ and reduced its price target to $48 from $52. Citigroup’s Walter Pritchard also cut the shares to a ‘Sell’ from ‘Neutral’.

SeaDrill Limited (SDRL) – The NYTimes reports that the Obama Administration will announce a proposal to open up coastal waters from Virginia to Georgia for oil and gas drilling. The name may be affected by the news.

SDRL shares recently gained $0.05 to $10.35. In the past 52 weeks, shares of Hamilton, Bermuda-based offshore drilling contractor have traded between a low of $9.18 and a high of $40.44. Shares are down 70.39% year-over-year, and 13.74% year-to-date.

ProShares UltraPro Short QQQ (SQQQ) shares are up 5.80% to $30.39 in early trading. The move comes on a strong volume too with the issue currently trading more than 1.2 million shares, compared to the average volume of 4.45 million. Not seeing any news or rumors to account for the move.

CIT Group Inc. (CIT) shares are flat in recent trading after rising 1.11% to $46.36 pre-market.The company on Tuesday said its profit nearly doubled in the most recent quarter. The commericial lender posted 4Q EPS of $1.37 on revs of $692.2 million, topping Street forecasts. For the year, the company reported profit of $1.13 billion, or $5.96 per share.

CIT shares recently lost 0.75 to $45.10. In the past 52 weeks, shares of Tulsa, Oklahoma-based company, which among other things provides engineering and fabrication services primarily to the oil, gas and minerals markets principally in the US and Canada, have traded between a low of $41.06 and a high of $50.23. Shares are down 3.35% year-over-year, and 4.14% year-to-date.

Advaxis, Inc. (ADXS) shares are seeing some strength in early trade following positive comments from The Street’s Adam Feuerstein.

Advaxis, Inc., currently valued at $215.99M, has a median Wall Street price target of $14.00 with a high target of $15.00. Approximately 1.1 million shares have already changed hands, well ahead of the stock’s 3-month daily average of 932.28 shares.

In the past 52 weeks, shares of Princeton, New Jersey-based clinical stage biotechnology company have traded between a low of $2.46 and a high of $13.74 with the 50-day MA and 200-day MA located at $7.86 and $4.25 levels, respectively. Additionally, shares of ADXS have a Relative Strength Index (RSI) and MACD indicator of 49.97 and -2.50, respectively.

ADXS currently prints a one year return of about 63.94%, and a year-to-date return of around 2.75%.

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