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Highlights of rising and falling U.S. stocks
Posted by Blain Reinkensmeyer
July 5, 2006 at 11:02 am
“Advancers
AT&T Inc. (T) was upgraded to buy from neutral at Banc of America Securities, which said it expects earnings estimates to be revised upward through the completion of the BellSouth merger. Analyst David Barden also said that strong subscriber and revenue growth at its Cingular wireless business is boosting margin expansion and profitability. Barden said based on 2007 earnings estimates, he sees AT&T, combined with BellSouth, as one of the least expensive stocks in the telecommunications sector.
CAS Medical Systems Inc. (CASM) said it has been awarded two U.S. patents for technology used in its Fore-Sight Cerebral Oximeter, which is scheduled for commercial release in late 2006. The device allows clinicians to monitor absolute levels of oxygen saturation in the brain.
CD&L Inc. (CDV) has agreed to be acquired by Velocity Express Corp. (VEXP) The Westport, Conn., transportation- and logistics-services provider, agreed to pay $3 a share for the South Hackensack, N.J., provider of facilities- management, contract-logistics and routed-delivery services, the companies said. CD&L has 22 million shares outstanding fully diluted, indicating the deal value at $66 million.
Shares of Duquesne Light Holdings (DQE) rallied as the company agreed to be acquired by a consortium led by Macquarie Infrastructure Partners and Diversified Utility and Energy Trusts.
NetGuru Inc. (NGRU) said it has received a “going concern” opinion in an audit of its fiscal 2006 financial statements. The audit stated that factors including losses and negative cash flows from operations, as well as the sale of a significant portion of NetGuru’s operating assets, raise doubt about the company’s ability to continue as a going concern.
Decliners
Carpenter Technology Corp. (CRS) named M. David Kornblatt chief financial officer and senior vice president, effective immediately. The Wyomissing, Pa., provider of specialty metal alloys said Kornblatt succeeds Terrence Geremski, who is retiring August 1. Kornblatt most recently served as CFO of York International.Check Point Software (CHKP) was downgraded to hold from buy at Deutsche Bank, which said near-term business trends are weak and the security-software company is lacking a longer-term strategy to re-energize growth. “Without a catalyst, and with management unwilling to be more aggressive with the company’s large cash balance to support the shares, we believe the shares could continue to be a value trap,” Deutsche Bank said.
Directed Electronics’ (DEIX) shares dropped after the company said the Federal Communications Commission has determined two of the products that it makes to transmit Sirius Satellite Radio (SIRI) content aren’t in compliance with certain standards. In a Form 8-K filing with the Securities and Exchange Commission, the company said its Sirius ST2 and Sirius S50-C radios were deemed out of compliance with either the applicable operating frequency range or the applicable emission limits by the FCC. Directed Electronics plans to fully cooperate with the FCC and to conduct an internal review. It expects to resolve the issue in a timely manner and backed its previously disclosed outlook for fiscal 2006.
Dov Pharmaceutical Inc. (DOVP) said Leslie Hudson resigned as president, chief executive and director. The company named Chief Financial Officer Barbara Duncan president. Arnold Lippa, chairman, was named executive chairman.
Shares of Expeditors International (EXPD) fell after Stephens Inc. downgraded the freight forwarding company to underweight, due primarily to concerns over valuation. Analyst Alexander Brand said even great companies get too expensive, as the company’s “strong fundamentals are more than adequately reflected in the current share price.”
Henry Schein Inc. (HSIC) said it acquired Provet Holding AG for an undisclosed sum in a move to enter the Swiss animal health market.
Honda (HMC) subsidiary American Honda Motor Co. said total June vehicle sales rose less than 1% from the year-earlier month, to 126,449 from 126,416 Car sales rose 4% to 75,008 while truck sales fell 5% to 51,441. By division, Honda sales rose 3.4% to 111,342 while Acura sales fell 19% to 15,107.
LeapFrog Enterprises Inc. (LF) said it named Jeffrey Katz as chief executive and president, succeeding Tom Kalinske, who will remain vice chairman.
Maxim Integrated (MXIM) said it received a subpoena from the U.S. Attorney for the Northern District of California asking for documents relating to stock-option grants and practices. The Sunnyvale, Calif., maker of analog and mixed-signal integrated circuits said it plans to cooperate with the request. Maxim also said a board committee, assisted by outside legal counsel, will review its stock-option-grant practices.
Nissan North America (NSANY) reported its total June sales fell 19% from the year-earlier month, to 75,154 vehicles. Sales of the luxury Infiniti line fell 20% to 9,300 units, while Nissan sales dropped 19% to 65,854 units.
Occidental Petroleum (OXY) expects to record an after-tax charge of $306 million, or 71 cents a share, in the second quarter related to the recent seizure of its Block 15 investment in Ecuador. The company said the charge will reduce first-quarter earnings from continuing operations to $2.67 a share from its previously reported $2.83 a share. Occidental sees earnings from continuing operations of $2.70 to $2.80 a share for the second quarter.
Opsware Inc. (OPSW) said it received notice that the Securities and Exchange Commission’s enforcement staff plans to recommend legal action against certain people — including Chief Financial Officer Sharlene Abrams — related to Mercury Interactive Corp. Opsware said the SEC Wells notice follows an investigation into stock option and other practices at Mercury, where Abrams was also financial chief. The proposed actions against Abrams and others are related to the timing of stock-option grants and the apparent timing of quarter-end shipments and certain expense items and accruals. The company said the SEC investigation doesn’t involve Opsware or Abrams’ role at Opsware.
PetroQuest Energy Inc. (PQ) increased its second-quarter production forecast to a range of 69 to 71 million cubic feet equivalent per day, up from its previous forecast of 65 to 69 Mmcfe per day. PetroQuest is an oil and gas company based in Lafayette, La.
Quest Software Inc. (QSFT) said it plans to restate certain past financial results to reflect proper recognition of expenses related to stock-option grants. The company expects the restatement, which was prompted by a previously disclosed special committee’s investigation of its option-grant practices and accounting, to result in material additional expenses.
Russ Berrie & Co. (RUS) said Chief Financial Officer John Wille has resigned. The Oakland, N.J., company said Wille had been financial chief since February 2001. Russ Berrie, which makes teddy bears and plush toys, said James O’Reardon, vice president of corporate audits will become interim financial chief.
Silicon Graphics Inc. (SGID.PK) filed an amended plan to reorganize, aiming to emerge from protection under Chapter 11 of U.S. bankruptcy law in September. Under the plan, Silicon Graphics will have a new credit line, with its total debt reduced to $70 million from $345 million. All of SGI’s new common stock will be held by the company’s current noteholders, debentureholders and managers. SGI’s current shareholders receive no recovery under the plan, SGI said.
Toyota Motor Corp. (TM) posted a 14.4% rise in June U.S. sales versus the year-earlier month, to 223,018 vehicles. Sales were up 6.3% at the Lexus division to 27,686 cars and trucks. Sales of the Corolla surged 39% to 37,111 units.
Trend Micro Inc. (TMIC) said the Securities and Exchange Commission staff may recommend a civil enforcement action against Chief Executive Eva Chen. Such an action would grow out of alleged violations of Section 10(b) of the Securities Exchange Act of 1934 as well as Rule 10b-5 involving her spouse, Daniel Chiang, and trading in Sina Corp. (SINA) securities. Chiang is former co-chairman of Sina. The SEC’s staff has also inquired into whether Chen underreported her holdings in Trend Micro shares, the Tokyo company said. Trend Micro added that it isn’t aware of any allegations against Chen that would be attributable to the company.
Wet Seal Inc.: (WTSLA) said the Securities and Exchange Commission has terminated its formal inquiry into the apparel retailer, with no enforcement action recommended.
Zoran Corp. (ZRAN) said it received a grand-jury subpoena from the U.S. Attorney for the Northern District of California, requesting documents from 1995 to the present related to stock options. The Sunnyvale, Calif., provider of digital solutions for applications also said it has received a notice of informal inquiry from the Securities and Exchange Commission requesting documents related to stock-option grants. Zoran said a board committee is reviewing its stock-option practices.”
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