Magnum Hunter Resources (MHR) Stock Lower Today as Oil Prices Drop

NEW YORK (TheStreet) -- Shares of Magnum Hunter Resources Corp. are down by 1.26% to $3.13 in mid-afternoon trading on Wednesday, as energy and oil related stocks retreat today along with the price of oil. Crude for February delivery is falling by 2.98% to $52.51 per barrel on the NYMEX this afternoon. Oil is making its way toward its biggest annual decline since 2008, Reuters reports. Prices are being pressured by weak demand and a supply glut caused by the boom in U.S. shale and OPEC's decision not to reduce its output. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Oil prices are under increased pressure on Wednesday as a survey out of China showed the country's factory industry declined in December, the first time in seven months. Reuters calls this a "bearish indication" of the strength of oil demand from the second largest consumer in the world. Separately, TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate MAGNUM HUNTER RESOURCES CORP (MHR) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: Currently the debt-to-equity ratio of 1.58 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGNUM HUNTER RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$5.19 million or 197.42% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. The gross profit margin for MAGNUM HUNTER RESOURCES CORP is rather low; currently it is at 21.75%. Regardless of MHR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MHR's net profit margin of -151.47% significantly underperformed when compared to the industry average. MHR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 55.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. You can view the full analysis from the report here: MHR Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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The Bond Market Could See This Scenario in the New Year

NEW YORK (Real Money Pro) -- Most people call their musings on 2015 a "forecast" piece, but in my old age I've begun to eschew that word. This Web site is called Real Money Pro for a reason, and I don't manage money via forecasts or predictions. Why write a bunch of predictions that even I don't trust enough to trade? Rather, I think in terms of probabilities and possibilities. I ask myself a series of "what if" questions, reason out how such a scenario might develop, and then think about what trades could work across multiple scenarios, or at least work great in the more likely scenarios and not too badly in the other scenarios. Must Read: Buy These 5 ‘Dogs of the Dow’ for Gains in the New Year I will break this into two parts, with today's column on interest rates and Friday's on credit. What if interest rates rise substantially? The most likely reason why this would happen is the economy accelerates in the first and second quarters, which either pulls Federal Reserve rate hikes forward into the spring and/or causes the Fed to raise rates more aggressively come the summer. The former would cause considerable volatility, but, ultimately, the latter is more impactful, and thus where I'm focusing my time. The key factor is employment. If job gains continue at the current pace, unemployment will hit 5.0% by June, and the Fed will have hiked at least once by then. What if interest rates fall? It is hard to imagine short-term (0 to three-year) interest rates falling. That would require the Fed hiking only once or twice and it subsequently becoming clear that it isn't going to hike again for a year or more. That would cause two-year Treasuries to drop into the 0.50% area, from the 0.68% area now. It's not quite as hard to imagine, but still highly unlikely, that five-seven year bond yields fall. In order for that to happen, the pace of Fed hikes would have to be seen as extremely slow, like 0.25% worth of hikes every four months or so. It would also require an assumed early stopping point, certainly no higher than 1.75%. So, basically we're talking a scenario where the Fed hikes six to seven times over a 2 ½ year period. Must Read: These 5 Stocks Look 'Toxic' For Investors in 2015: Deutsche Bank and More Long-term rates are a different conversation. In order for rates on bonds 10 years or longer to fall all you need is an assumption by the market that rate hikes are going to stop in the 2.25% to 3.00% area and move relatively slowly (like 0.25% hikes every two months) to get there. Or else, the presumption is that the economy will go back into recession in 2017. What about inflation? I didn't mention inflation in the "rates rising" scenario because I believe the scenarios where inflation picks up are also scenarios where employment gains accelerate. I don't think conditions are right for stagflation now. It is worth noting that a big bet on inflation would be about the most contrarian bet you could make. No one in the rates complex is expecting inflation. But I also don't see a huge payoff if this bet turns out to be right. At one time I thought it was plausible that the Fed might allow inflation to accelerate to 3% or higher before hiking at all. At that point there might be enough pressure in the system to carry CPI all the way to 4%. However, it is now clear that won't happen. So any mild acceleration in current inflation readings will just cause the market to price faster rate hikes as opposed to a higher steady-state rate of inflation. Given that, a mild acceleration in inflation, to 2.5% or so, will be seen as temporary and thus unimportant for pricing bonds. What will matter is that the Fed is acting. What are the odds? I find it highly unlikely that the Fed won't hike at least once or twice in the middle of 2015. We have too much momentum already to imagine it all cratering over the next six months. For instance, by the time job gains turned negative in the spring of 2008, the pace of gains had been slowing for 2 ½ years. Right now we're still accelerating. The scenarios where 0 to seven-year rates decline are farfetched to me. Possible, but it requires a convoluted set of assumptions to get there. It has been much more common for the Fed to start a hiking cycle and then keep moving rates higher at a consistent clip until it starts to see a negative impact on the economy. I can certainly see the Fed hiking twice and then pausing, but unless the economy immediately heads into the tank after those first two hikes, the market will price bonds as though the rate-hiking cycle is resuming. Must Read: 10 IPOs for 2015 -- Because Silicon Valley Needs More Billionaires What's the trade? I think the market is underestimating the Fed and hence is overly sanguine about the risks in three- to seven-year bonds. I'm outright short this part of the yield curve and have pressed that position just before Christmas. I've been especially active in adding seven-year shorts, whereas before that I was mostly just short three- to 5-year bonds. I like this trade because I think the potential downside is pretty low. I think the 1.40s is probably the floor on fives and the 1.70s on sevens. The biggest risk is really that I'm paying carry and therefore if the Fed just prolongs its rate hikes, I won't make much from this trade. But "won't make much" isn't a bad downside for a trade! On the longer end of the curve, I made a lot betting on long rates falling in 2014. Today, the 30-year is through my fair value estimation of 2.90%-3.00%, so I'm not bullish outright any longer. However, owning some 20- to 30-year bonds is a good hedge against my three- to seven-year short. The scenarios where three- to seven-year bonds hang around this level or even fall are scenarios where long-term rates fall as well. Must Read: 11 Best Small-Cap Technology Stocks That Could Hit It Big in 2015 This article was originally published on Dec. 30 at 4:00 p.m. EST on Real Money Pro.

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Whiting Petroleum (WLL) Stock Retreating Today as Oil Prices Slip

NEW YORK (TheStreet) -- Shares of Whiting Petroleum Corp. are down by 2.01% to $32.65 in late morning trading on Wednesday, as oil and energy related stocks fall along with the price of oil. Crude oil for February delivery is lower by 2.51% to $52.76 per barrel on the NYMEX this morning. Oil is making its way toward its biggest annual decline since 2008, Reuters reports. Prices are being pressured by weak demand and a supply glut caused by the boom in U.S. shale and OPEC's decision not to reduce its output. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Oil prices are under increased pressure on Wednesday as a survey out of China showed the country's factory industry declined in December, the first time in seven months. Reuters calls this a "bearish indication" of the strength of oil demand from the second largest consumer in the world. Separately, TheStreet Ratings team rates WHITING PETROLEUM CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate WHITING PETROLEUM CORP (WLL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that WLL's debt-to-equity ratio is low, the quick ratio, which is currently 0.58, displays a potential problem in covering short-term cash needs. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has decreased by 22.6% when compared to the same quarter one year ago, dropping from $204.10 million to $157.98 million. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WHITING PETROLEUM CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500. You can view the full analysis from the report here: WLL Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Fosun Insures Its U.S. Foothold With Meadowbrook Acquisition

Chinese conglomerate Fosun International on Wednesday moved to establish an insurance foothold in the U.S., agreeing to acquire Meadowbrook Insurance Group in a cash deal valued at $433 million. Terms of the deal call for Fosun to pay $8.65 per share for Southfield, Mich.-based Meadowbrook, a premium of 24% to the target's Dec. 29 close and 39% above its three-month average closing price. The deal values Meadowbrook at about 1.04 times tangible book value. Meadowbrook is a property and casualty specialist offering risk management products to agents, trade associations and small to mid-sized businesses. The deal is the result of a review of options by Meadowbrook's board. Meadowbrook CEO Robert S. Cubbin in a statement said the deal "strengthens our capital base" and said he believes the outcome of the review benefits all parties. Shanghai-based Fosun, a $50 billion-asset holding company with interests in the financial, mining and leisure sectors, said that the deal would give it a "significant presence" in the U.S. property and casualty market. Fosun currently has about one-third of its assets in the insurance business, including businesses in China and Portugal and a 20% interest in heavy equipment insurer Ironshore. Fosun chairman Guo Guangchang in a statement said that the purchase is "another milestone for Fosun and will enable Fosun to further strengthen its insurance-oriented comprehensive financial capabilities." The Chinese company has been active. Fosun is currently battling to increase its 18.4% stake in Club Mediterranee, and is rumored to be a bidder for Portugal's Novo Banco. The Meadowbrook deal, which is subject to approvals, is expected to close in the second half of 2015. Meadowbrook postdeal will continue to operate under its existing brand and be headquartered in Michigan. KPMG, Towers Watson Delaware and PricewaterhouseCoopers are acting as advisers of finance, actuary and tax, respectively, to Fosun, with DLA Piper LLP serving as legal adviser. Willis Capital Markets & Advisory is financial adviser to Meadowbrook and Sidley Austin LLP is acting as legal counsel to the seller.

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This $340 Million Food Starch Merger is Getting a DOJ Ironing

The merger of two leading producers of modified food starches, a staple ingredient of nearly every processed food product, is being investigated by antitrust enforcers at the Department of Justice. Ingredion Inc. and Penford Corp. said Monday the DOJ has issued a second request for information regarding their $340 million deal, which was announced Oct. 15. The companies are among six of the major global players in the modified starch business. The others are Cargill Inc., Archer Daniels Midland Co. , Tate & Lyle plc and Roquette Frères SA. Ingredion, Penford, Cargil and ADM are U.S.-based. Tate & Lyle and Roquette are based in the U.K. and France, respectively, although both have operations in the U.S. The starch industry is highly competitive and the primary products are essentially commodities that are viewed as interchangeable from one manufacturer to another. Customers for the products include manufacturers of food and beverages, brewing, pharmaceuticals, animal nutrition and paper and corrugated products. In fact, companies in the business compete so directly that Ingredion has included noncompete clauses in the employment contracts of Chairman and CEO Ilene Gordon and other top executives. Despite the intense competition, the companies and their lawyers during merger negotiations considered the possibility that antitrust officials would require divestitures. On October 6 the parties discussed whether the merger agreement should include a requirement that Ingredion divest assets or otherwise agree to any business restrictions in the context of antitrust approvals. The topic was addressed again three days later. Ultimately, the parties concluded that all necessary regulatory approvals could be obtained without the imposition of unacceptable conditions. However, Ingredion secured language that shielded it from any obligation to divest its assets or to agree to any conditions affecting its operations or to defend against a DOJ lawsuit challenging the merger. It also is not required to divest any Penford asset if the spinoff would "materially diminish the expected benefits of the transaction." The agreement does not carve out any specific assets that Ingredion must be willing to divest nor is Penford entitled to a reverse termination fee if the deal is called off because of antitrust considerations. The parties filed their merger application with U.S. antitrust officials on Oct. 27. Ingredion subsequently withdrew its notification on Nov. 25 and refiled it on Nov. 26. Pulling and refiling merger notification documents is a standard tactic when parties are trying to avoid a more burdensome second request. Nevertheless the DOJ issued its request for additional information on Dec. 24. Ingredion is represented before the DOJ by Sidley Austin LLP antitrust partner David Giardina. Ingredion is known primarily for producing corn syrup and corn starch whereas Penford is known for potato-derived products. However, both companies are investing heavily in new products aimed at the growing market for more nutritious, gluten-free and sustainably produced ingredients. "This will nicely round out our product portfolio with complementary specialty ingredient solutions," Gordon told analysts during the company's third quarter earnings call on Oct. 30. "Additionally, it builds our presence in nature-based hydrocolloid ingredients and brings other capabilities which will enhance our efforts to delivering new ingredient solutions to the marketplace." Hydrocolloids are essentially gums and include additives such as gelatin, agar, pectin, xanthan and carrageenan. Gordon said the deal also will produce at least $20 million in annual synergies, primarily from eliminating redundant public company costs, procurement and supply chain efficiencies and savings and other general and administrative areas. "There is a real opportunity to drive operating and supply chain efficiencies as we leverage the combined manufacturing network in the U.S.," she said. The starch industry is growing rapidly because rising disposable incomes globally are creating demand for more processed foods and other products and because of technological developments in the business. In foods and beverages starch derivatives are used as texture agents and stabilizers. For instance, they are used as thickeners in yogurts and soups. Cracker makers use them to control the crunchiness of their products. They also allow vitamin C to be added to beverages without having it clump at the bottom of the bottle. They also are used as tablet binders in pharmaceuticals, as emulsifiers in cosmetics and fiber additives in animal feed. In other products they provide PH and acidic stability, adhesiveness and film-forming properties. The starch business is expected to grow worldwide at a rate of 6.2% annually over the next seven years to $58.2 billion by 2019. The major players are developing specialty starches because of the growing consumer demand that food and beverage companies reformulate products to address concerns about obesity, nutrition and labeling. They also offer higher margins. Already specialty products account for 15% of Ingredion's sales, according to a report issued by Credit Suisse analyst Robert Moskow when he initiated coverage of the company in April. Specialty starches are growing at double-digit rates and have high barriers to entry because of the capital investment and R&D required. "The consumer trends are really growing in the area of gluten-free to non-GMO, the whole area of texture and sustainability," said Ingredion's Gordon, noting that Penford has extensive capability in R&D and product development. "So for us it was a great opportunity to expand our portfolio of high-value specialty products. And then having the manufacturing capability along with that and the ability to formulate really made it very timely." Read more from:

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GrubHub (GRUB) Climbs After Analyst Upgrades Stock to Buy

NEW YORK ( TheStreet) -- Shares of GrubHub are climbing after research firm Barrington upgraded the stock to Outperform, which is the firm's Buy-equivalent rating, in a note to investors today. GrubHub enables users to place restaurant pickup and delivery orders using the Internet. WHAT'S NEW: GrubHub has several strengths, including its status as the first company to enter its business, a "highly profitable business model," and significant momentum, Barrington analyst Jeffrey Houston wrote. Moreover, GrubHub should have no problem increasing demand for its service, given its convenience and compelling nature, Houston contended. The analyst's primary concern about the stock had been looming lockup expirations and its high valuation, he stated. Lock-up agreements, a typical feature of a company's initial public offering, prevent certain shareholders from selling for a set amount of time after the offering. However, GrubHub's final lockup expiration occurred during the first week of December, and the stock fell 8% from mid-September to yesterday's close, lessening these concerns, Houston explained. Meanwhile, GrubHub has several upcoming potential catalysts, including expansion to chain restaurants and lunch, according to the analyst, who set a $43 price target on the shares. PRICE ACTION: In early trading, GrubHub rose 1.5% to $36.39. Reporting by Larry Ramer.

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Online Gaming Company Bwin.party is Betting on a Sale of Win

Rolling the dice into the New Year, online gambling company Bwin.Party Digital Entertainment plc said it is in talks regarding the sale of its social gaming unit as it continues negotiations with several parties on a variety of possible business combinations. "We are in active discussions regarding the sale of Win, the group's social gaming business, and expect to make an announcement shortly," the London-listed company said in a statement issued after the market closed Tuesday, Dec. 30, without giving any details. It also said that "discussions with third parties regarding industry consolidation are continuing," as announced in November, with the disclaimer that "there can be no certainty as to whether or not such discussions will result in an offer being made for the company." Toronto-listed Amaya Gaming Corp., which plunked down $4.9 billion earlier this year for PokerStars owner Oldford Group Ltd., and gaming software development company Playtech plc are both seen as possible suitors for Bwin, created from the 2011 merger between bwin Interactive Entertainment AG and Party Gaming plc . Bwin appointed Philip Yea as board chairman in April, and in May it settled a proxy fight for board seats with Jason Adler's SpringOwl Asset Management. Spring Owl held a 5.21% stake in Bwin as of late November, while Janus Capital Management LLC is the largest single shareholder with a 12.01% holding. Bwin shares were trading up 0.17% in London late Wednesday morning at 116.40, after declining earlier in the day, putting its current market capitalization at around £923.45 million ($1.4 billion). The stock is 2.13% lower over a year ago. Incorporated and licensed in Gibraltar, Bwin is the world's largest listed online gaming operator, with 2013 revenue of €652.4 million ($792 million) and Ebitda of €108 million. It employs 2,779 people across Europe, India, Israel and the United States, and makes most of its money from sports betting through the bwin online brand. It's also active in poker, casino and bingo games, through the partypoker, PartyCasino and Foxy Bingo online brands. The company said Tuesday that it expects 2014 revenue to be in the range of €608 million to €612 million, and a 'clean' Ebitda margin of 16% to 17%. It said it's also looking at Ebitda losses this year of about €7 million from social gaming, and €10 million from New Jersey. It also said it's on track to deliver the €30 million in cost savings targeted for 2014. Full-year results are due out on March 10. Read more:

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Pacific Ethanol (PEIX) Stock Gaining Today After Acquiring Aventine

NEW YORK (TheStreet) -- Shares of Pacific Ethanol are gaining, higher by 3.44% to $11.08 Wednesday morning, as shares of the low-carbon renewable fuels producer resumed trading after a deal to buy all of Aventine Renewable Energy's outstanding shares in a stock-for-stock merger transaction. Trading of Pacific Ethanol stock was halted prior to the company's announcement until 9 a.m. ET today. Pacific Ethanol CEO said the transaction will more than double its annual ethanol production capacity and will establish Pacific Ethanol as the fifth largest producer and marketer of ethanol in the U.S. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates PACIFIC ETHANOL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate PACIFIC ETHANOL INC (PEIX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 17.8%. Growth in the company's revenue appears to have helped boost the earnings per share. PEIX's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.28, which clearly demonstrates the ability to cover short-term cash needs. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PACIFIC ETHANOL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500. The gross profit margin for PACIFIC ETHANOL INC is currently extremely low, coming in at 7.74%. Regardless of PEIX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.46% trails the industry average. You can view the full analysis from the report here: PEIX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Sony, Smacked, Hacked and Cracked is Hoping, Praying for a Better 2015

NEW YORK (TheStreet) -- December hasn't been a great month for Sony . First came word that Microsoft's Xbox One sales may have pulled ahead of Sony's PlayStation 4, then the massive cyberattack and related threats concerning The Interview, which was supposed to be a harmless satire, and finally the hacking of the PlayStation network knocking it offline on Christmas Day. The Japan-based company is hoping 2015 will be a lot better. Read More: Why Most Companies Could Be Hacked Just As Easily As Sony Sony's most recent woes began when Microsoft dropped the price of its Xbox One game unit. It started the year at $499. The price was cut to $399 by removing the Kinect controller from the package, and then another $50 came off the price for the holiday shopping season. Final sales figures have yet to be tallied, but Sony's long-term sales lead may have been severely challenged by Microsoft's moves. Sony shares were gaining nearly one percent to $20.77 in premarket trading in New York. Then there's the hacking problems. First, the battle with North Korea over the plot of what was supposed to be Sony's Christmas blockbuster The Interview. Accusations came from all sides, but in the end Sony managed a limited release of the movie in a small number of theaters and also through online viewing vendors like Google Play, YouTube, Xbox Video and this week, Apple's iTunes store. The movie wound up being seen more than 2 million times in the first few days of release and earned Sony more than $15 million. That makes it the company's most successful online movie ever. On the other hand, there are reports that the threats over the release of the movie didn't come from North Korea or any other country but, instead, was an inside job. The hacking might have originated with a disgruntled employee who had been fired earlier in 2014. Federal authorities are investigating those reports. Must Read: 10 IPOs for 2015 Because Silicon Valley Needs More Billionaires During the attack, all of Sony Pictures' hacked computers were offline and the company was reportedly forced to resort to digging-up old BlackBerry devices to communicate with each other and the outside world via device-to-device messaging. Ironically, Sony is one of the leading proponents of mobile products running Google's Android operating system. As for the game system hack, Sony's PlayStation network is finally back online a few days after being attacked by a group calling itself the Lizard Squad. Microsoft's Xbox network also fell victim to the same attack but made it back online over the weekend. The FBI is busy tracking down exactly who is responsible for the game networks hacks while the Lizard Squad is making even bolder moves. The group is now offering its denial of service hacking secrets for sale on its Web site. Prices start at $6 per month to take down a Web site for 100 seconds all the way up to $130 a month to attack a site for eight days. There are also more expensive "lifetime" options available which could cripple Web sites for up to five years. Read More: Jim Cramer's Five Best Stock Picks For the Biotech Sector -- Written by Gary Krakow in New York. To submit a news tip, send an email to tips@thestreet.com.

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