Daily Archives: January 28, 2008

Adieu Barry Diller (IACI)

Liberty Media, the controlling shareholder of Barry’s Diller’s IACI (IACA) wants Mr. Diller to know that the company is not really his. Liberty has filed suit to take away Mr. Diller’s rights to vote its shares. Liberty wants Mr. Diller and the majority of his board out on the streets.

In a response to Liberty’s actions, Mr. Diller said in a statement: "After reading this new salvo, I am beginning to think these people are insane. Everything they cite is hogwash. First of all, we have never asked the board to take action on any specific proposal high, low or no-vote. What we have done, which we thought was the responsible thing to do given this conflict, is to go to the Delaware court and ask them to tell us what rights IAC has or doesn’t have," writes The Wall Street Journal.

Insane, indeed. Mr. Diller now thinks he is a psychiatrist. He may need a new line of work.

Douglas A. McIntyre

Posted on: January 28, 2008 – 7:49 pm in Management Change,

Chinese IPO Filing: BCD Semiconductor Manufacturing Ltd. (BCDS)

BCD Semiconductor Manufacturing Ltd. has filed to sell its shares of its ADS in an initial public offering.  The ADS’s to be sold in the offering are expected to be offered by the company.  Deutsche Bank will act as the sole book-running manager, and Needham & Co. and Piper Jaffray are registered as the as co-managers for the underwriting.  It filed to sell 6 million ADS’s with a $9 to $11 offering range.  Each ADS represents 5 ordinary shares.  BCD Seniconductor will trade under the tentative ticker "BCDS" on NASDAQ.

It maintains direct relationships with key market-leading end users of our products, including Changhong and Foxconn in China, ASUSTeK and Delta Electronics in Taiwan, Sony in Japan and LG and Samsung in South Korea.  The company is an analog integrated device manufacturer based in Greater China.

BCD Semiconductor posted $69.7 million in revenue in fiscal 2006, up 57.0% over 2005 revenue. It also posted a net loss in 2006 of approximately $4.6 million, and it lists its accumulated shareholders’ deficit at $61.4 million. As far as a more recent revenue target, it increased from $49.4 million to $69.3 million when comparing the 9-months ended September 30, 2006 and 2007, respectively, with an increase of 40.3%.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 6:47 pm in ADR, China, IPOs, Semiconductor, , , ,

Cramer on Motorola Versus Nokia (MOT, NOK)

On tonight’s MAD MONEY on CNBC, Jim Cramer compared a great Nokia (NYSE: NOK) to a horrible Motorola (NYSE: MOT).  Last week Motorola said mobile handset sales were down 38% last week and lowered guidance ahead.  Cramer thinks that any ties to the company are wrong and that Motorola’s pain is Nokia’s gain.  Cramer doesn’t think Mr. Brown is doing any better since Zander left, and he thinks that Carl Icahn might be its only real help.  If you look at Nokia’s numbers, you’ll decide they are taking it all from Motorola.  To him it’s a broken company. 

  • Our old $26.70 break-up value on Motorola is completely history compared to what this situation looked like back when it had value.  We have run some break-up values now that the company has allowed its state to go this way.  We aren’t even convinced that you could milk $20.00 from this cow on most days in the current conservative and "show-me" environment.

This sounds a lot like what our own Douglas McIntyre noted just last week.  He even stated, "It is all over now for Motorola (MOT) and Palm (PALM). They might have had a chance to pick up enough market shares to dig themselves out of the holes of late products, crummy products, and weak financial performance. RIM (RIMM), Apple (AAPL), Samsung, and Nokia (NOK) have flanked them then overrun them. A bad economy makes their positions untenable."

We’ve also noted that Motorola is just a turnaround that looks like it can’t turnaround.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 6:29 pm in Cramer, , ,

IPO Filings: Phenomix; MYR Group

PHENOMIX CORP. submitted an IPO filing last Friday. The filing shows for a sale of up to $86,250,000 in securities, although this number is merely for filing purposes.  The underwriting group is listed as Morgan Stanley, Oppenheimer and Co., Credit Suisse, and Pacific Growth Equities. Phenomix Corp. has applied for the stock ticker “PHMX” on NASDAQ.

  • Phenomix Corp. is a biopharmaceutical company that focuses on product candidates that improve existing therapies as well as other product candidates in clinical development. Their lead product candidate is PHX1149, an oral, once-daily treatment for Type 2 diabetes, and is currently in Phase 2b clinical trials with expected Phase 3 clinical trials to begin later this year. Their other product, PHX1766, is in pre-clinical development for the treatment of hepatitis C virus infection and Phase 1 trials are expected to begin later in 2008.  Key shareholders include JPMorgan Funds, Nomura Phase4 Ventures, and Delphi Funds. 

MYR GROUP INC. submitted an IPO filing last Friday. The filing shows for a sale of up to $255,980,101 in securities, although this number is merely for filing purposes.  MYR Group Inc. has applied for the stock to be listed on NASDAQ without a pre-set ticker designation.

MYR Group is a large national contractor that services the transmission and distribution sector of the electric utility industry in the United States. They contract with over 125 electric utilities, cooperatives and municipalities in this sector. Their other revenue generating sector is commercial and industrial electrical contracting services. In 2006, MYR and affiliates purchased 98% of FirstEnergy, and for the year ending 2006, MYR Group generated an estimated $535 million in pro forma revenues and a pro forma net income of $10.95 million. 

Key shareholders include William Koertner, Carter Ward, ArcLight Affiliates, Goldman Sachs, and Fidelity. 

THIS STORY WAS ORIGINALLY SCHEDULED TO RUN THIS WEEKEND BUT WAS DELAYED ON SERVER & HOSTING MAINTENANCE.

Rachel Lopez
January 28, 2008

Posted on: January 28, 2008 – 5:55 pm in IPOs, , , ,

Zoran, When Beating Earnings Isn’t Anywhere Near Enough (ZRAN)

Zoran Corp. (NASDAQ: ZRAN) shares are getting hit hard in after-hours trading.  The company posted earnings of $0.34 EPS, $0.02 better than the First Call estimate of $0.32.  Unfortunately the good news stops there. 

Revenues did rise some 34% from Q4-2006 to $129.4 million, but First Call had estimates at $130.8 million.  It got worse too after it issued guidance to the downside for Q1-2008 with EPS of $0.05 to $0.09 and it sees Q1-2008 revenues of $104 to $109 million.  First Call was at a $0.24 EPS and $122.35 million in revenues. Gross margins will be in the range of 50% to 51%.

The company develops and markets integrated circuits and products used in digital versatile disc players, movie and home theater systems, digital cameras, professional and consumer video editing systems, and digital speakers and audio systems. 

Its shares are down some 22% to $11.65 in an active after-hours trading session. The 52-week trading range is %13.72 to $27.45, so treat this one as a new 52-week low for Tuesday.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 5:15 pm in Earnings, Earnings Warning, Technology Companies, ,

VMware’s Revenue Punt Destroys Its Shares & EMC Shares (VMW, EMC)

VMware, Inc. (NYSE: VMW) has posted earnings of $0.26 non-GAAP EPS on $412 million in revenues.  First Call had estimates pegged at $0.24 EPS and $417.37 in revenues.  Even though this represents an 80% revenue gain, this is going to be dismal for most VMware investors. 

If the company offers guidance in the conference call, Next quarter’s estimates are $0.24 EPS and $436.41M in revenues; if the company offers 2008 targets, those estimates are $1.17 EPS and $2.08B in revenues.  This was only the second earnings report out of the company and its first full quarter as a public company.   Analysts had an average price target on VMware of $105.88, and we’d likely expect many analysts to have more cautious comments that this looks "near full value" based upon today’s numbers.  Its former parent, EMC Corp. (NYSE: EMC) is set to report its earnings tomorrow.

Diane Greene, president and chief executive officer of VMware: "We begin 2008 with more than 100,000 customers, 500 technology and consulting partners, nearly 10,000 go-to-market partners, and more than 5,000 employees. As others begin to enter the market, VMware and our partners are continuing to broaden and deepen our highly reliable end-to-end virtualization solutions."

VMware stock closed down 1.2% to $79.55 in normal trading and its shares had mostly traded in a $76 to $83 trading range over the last five trading sessions.  This is the worst event-risk trading seen on this with a drop of 25% to $62.37 in after-hours trading. In fact, this essentially wipes out most of the post-IPO gains.  VMware will need to show some huge guidance to make this initial reaction a bit less violent.

You can imagine the headlines for Tuesday: "VIRTUALIZATION CRAZE ENDSAS FAST AS IT STARTED"….. That might prove true for VMware, althoughthis trend will be a huge savings boon for every large and mediumenterprise out there.

EMC shares are down some 9% or more to $15.30 in after-hours trading after a mere 1% gain in regular trading today. 

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 4:51 pm in Earnings, Software, , , ,

American Express Better Than Worst Case (AXP)

American Express Company (NYSE: AXP) has posted earnings of $0.72 EPS from continuing operations on revenues of $7.364 Billion net of interest expense.  We had already been warned that this quarter was going to be a miserable one.  First Call has estimates pegged at $0.71 EPS and $7.85 billion in revenues. 

Analysts have a price target on American Express  with an average of $56.15.  Even after the company already signaled much of the quarter, options traders appear to be braced for a move of $2.50 in either direction.  This chart has been an ugly one but at least has bounced since the FOMC made its emergency intervention last week.  The 52-week trading range is $41.15 to $65.89, and the pattern over the last 5-days has been in a $44 to $48 trading range.

U.S. Card Services net income of $7 million was down from $473 million, principally attributed to rising credit costs and the increased expense related to Membership Rewards.  International Card Services reported a fourth-quarter net loss of $68 million, compared with net income of $99 million a year ago.  Global Commercial Services reported fourth-quarter net income of $110 million, down from $117 million a year ago.  Global Network & Merchant Services reported fourth-quarter net income of $254 million, up 26 percent from $201 million a year ago.  Corporate and Other reported fourth-quarter net income of $536 million, compared with net income of $5 million a year ago, with the increase primarily due to the previously mentioned $700 million after-tax gain from the company’s settlement agreement with Visa.

American Express shares closed up some 4.3% at $47.40 in normal trading today, and shares appear to be giving back about 2% down to $46.40 in after-hours trading.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 4:38 pm in Earnings, Financial Stocks,

SanDisk’s Earnings Incomplete Until Guidance (SNDK)

SanDisk (NASDAQ: SNDK) has posted fourth-quarter earnings of non-GAAP EPS of $0.69 on revenues of $1.246 billion.  Estimates from First Call were $0.64 EPS on $1.27 Billion in revenues.

Eli Harari, Chairman & CEO: “Despite current uncertainties in the worldwide economy and a challenging industry pricing environment in the first quarter, we expect to grow our top and bottom line in 2008, driven by continuing strength in our mobile markets, our expanding international retail footprint and our competitive cost structure.”

SanDisk also repurchased 7.5 million shares during 2007 under its $300 million share repurchase plan to reduce the dilution from the issuance of employee equity incentive awards.

American Technology Research analyst Doug Freedman just cut estimates for Q4 2007 and for 2008 this morning, so we’d ratchet those First Call numbers down slightly.  Shares had been down early in the day, but SanDisk shares closed up 1% to $25.89 in normal trading.  That is toward the bottom of the $24.29 to $59.75 trading range seen over the last 52-weeks.

Unfortunately, this does not include any formal guidance so this might as well be considered as unfinished business.   Ahead of the conference call, this one traded up 3.9% in after-hours trading to $26.90.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 4:16 pm in Earnings, Semiconductor,

The 52-week Low Club (ADS)(IKN)

Alliance Data Systems (ADS) Deal for buy-out may be falling apart. Shares fall to $39.54 from 52-week high of $80.79.

Image Entertainment (DISK) Dispute with creditors. Drops to $1.04 from 52-week high of $4.50.

Discovery Laboratories (DSCO) Recently named a "death bed" stock by Motley Fool. Sells off to $1.75 from 52-week high of $3.75.

IKON Office (IKN) Rough quarterly numbers. Down to $8.35 from 52-week high of $16.11.

Douglas A. McIntyre

Read More »

Posted on: January 28, 2008 – 4:04 pm in HI/LOW, , , ,

Al Gore & Current TV Coming Public (CRTM)

An IPO filing came in today from a company called Current Media, Inc.  The filing shows for a sale of up to $100 million in securities, although this number is merely for filing purposes.  The sole book runner is JPMorgan, Lehman Brothers is listed as Joint-Lead manager, and Pacific Crest Securities is a co-manager.  Current has applied for the stock ticker "CRTM" on NASDAQ.

Current is the Al Gore-backed global participatory media company that democratizes media by engaging, informing and enriching our young adult audience AND encouraging their participation across platforms.  Much of the content is user-generated.  This media network consists of Current TV, and a website, Current.com.  Its affiliate customers include DirecTV, Comcast, EchoStar, Time Warner and AT&T.

Current TV was launched in August 2005 in approximately 19 million subscriber households in the United States and is now available in approximately 51 million subscriber households in the U.S., U.K., and in Ireland.   In 2006 and 2007, it recorded revenue of $37.9 million and $63.8 million, respectively.  Because of heavy investment in network and infrastructure its operating losses were $4.8 million in 2006 and $6.1 million in 2007.

Some of the key shareholders are significant.  Some of the key names behind this that own shares are Al Gore, Ron Burkle, Blum Capital affiliates, Yucaipa affiliates, DirecTV and a Comcast affiliate.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 2:56 pm in IPOs, Media, , , ,

Will American Express Earnings Depress Or Show Excess? (AXP)

We’va already been warned that this quarter was going to be a miserable one, but today is the awaited earnings from American Express (NYSE: AXP). As this is a DJIA component and as this one has what is thought of as the highest credit scoring for consumers, this news can still run-off into many other financial companies large and small.

First Call has estimates pegged at $0.71 EPS and $7.85 billion in revenues.  Next quarter’s estimates are $0.85 EPS and $7.28 billion in revenues; if the company offers 2008 targets, those estimates are $3.49 EPS and $30.72 billion in revenues.

Analysts still have a price target on American Express Company with an average of $56.15.  Even after the company already signaled much of the quarter, options traders appear to be braced for a move of $2.50 in either direction.  This chart has been an ugly one but at least has bounced since the FOMC made its emergency intervention last week.  The 52-week trading range is $41.15 to $65.89, and the pattern over the last 5-days has been in a $44 to $48 trading range.

With about 90 minutes to the close, American Express shares are up 2.8% to $46.73.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 2:33 pm in Earnings, Financial Stocks,

Street Bracing for VMware Earnings (VMW, EMC)

Today is the long-awaited earnings out of virtualization leader VMware Inc. (NYSE: VMW).  This could be a crucial report as this is only the second earnings report out of the company and its first full quarter as a public company.

First Call has estimates pegged at $0.24 EPS and $417.37 in revenues.  Next quarter’s estimates are $0.24 EPS and $436.41M in revenues; if the company offers 2008 targets, those estimates are $1.17 EPS and $2.08B in revenues.

Analysts still have a favorable price target on VMware with an average of $105.88. We are not using options as a prediction tool because of the high VIX and because of a "VMware premium" where many traders use longer-dated options for exposure to the stock rather than paying $80-ish for shares.  The current February $80 straddle would cost traders $11.40 on last look.  Its chart also does not have 6-months of data, so  about all we’d note there is that over the last five trading days shares have traded roughly in a range of $76 to $83 during that time.

Most recently, Lazard Capital Markets initiated coverage with a Buy, and just last week we saw a conservative coverage initiation out of William Blair & Co.

VMware still has a $30.5 Billion market cap, yet only about 14% of its authorized shares are available in the public float.  Shares were down 0.9% at $79.80 at 2:00 PM ahead of the results.  Its trading range since coming public in August has been $51.50 to $125.25. 

Its former parent, EMC Corp. (NYSE: EMC) is set to report its earnings tomorrow.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 2:16 pm in Earnings, ,

The Day In Biotech Stocks (January 28, 2008) (ACOR, BIIB, CELG, PHRM, CRXX, LIPD, MDVN, PCOP)

Acorda Therapeutics inc. (NASDAQ: ACOR) showed late stage trial results on its drug candidate Fampridine-SR for treating multiple sclerosis.  This data showed that Fampridine, which is designed to treat multiple sclerosis, did not increase patients’ QT interval Associated with Arrhythmia more than a placebo did.  Shares were up $4.29 at $26.07 mid-day.

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) is set to report earnings after the closing bell, with First Call estimates at -$0.44 EPS on revenues of $202.58 million Shares were up less than 1% at $32.74 on the day ahead of earnings.

Carl Icahn has nominated three individuals for the board of directors in Biogen-Idec (NASDAQ: BIIB) in his activist efforts to move the shares.  Biogen-Idec shares were down $0.90 to $58.02 mid-day.

Celgene Corporation (NASDAQ: CELG) was cleared today by German regulation to proceed with its acquisition of Pharmion. Stocks are up over 3% to $53.31 at mid-day. Pharmion Corp. (NASDAQ: PHRM) shares were up 1.8% to $67.44.

CombinatoRx Inc. (NASDAQ: CRXX) shares fell almost 7% to $4.80 mid-day on thin trading volume.  Technically there was no news today, although this followed guidance last week of losses below view.

Lipid Sciences, Inc. (NASDAQ: LIPD) announced positive trial results in non-human SIV-infected primates in its proprietary deplidated autogolous virus vaccine. Share prices were up more than 15% or $0.09 to $0.65 at mid-day.

Medivation, Inc. (NASDAQ: MDVN) rose after it announced that, based on its end-of-Phase 2 meeting with the FDA, it plans to begin a pivotal confirmatory Phase III trial of Dimebon for mild-to-moderate Alzheimer’s Disease in the second quarter of 2008.  Shares rose $2.36 to $17.21 by mid-day on this data.

Pharmacopeia, Inc. (NASDAQ: PCOP) shares fell over 10% to $4.37 at mid-day on thin-trading volume. There has been no recent news.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 1:43 pm in Biotech, , , , , , , , , , ,

McDonald’s (MCD): Blame It On The Weather

McDonald’s (MCD) was the greatest stock in the US until it wasn’t. Improvement in same-store sales in the US and overseas drove the stock from below $32 in June 2006 to over $63 just five weeks ago.

MCD had a yield of over 2.5% and a perfect balance sheet. The firm seemed recession-proof. How can things get so bad that people will not buy hamburgers?

Much of the excitement that built up around the big fast food chain was due to its move into the premium coffee business and its early AM breakfast results. These seemed to lift the place from just being a lunch and dinner joint. The success of the new "morning McDonald’s" also drive shareholders out of Starbucks (SBUX) shares like a herd of cattle.

Now McDonald’s has come back to earth Shares are down 8% today. It is just a bunch of restaurants with a red-haired clown as a spokesman. Why was the fourth quarter slow in the US? "Severe winter weather throughout the month and softer consumer spending resulted in December U.S. comparable sales being flat."

Blame it on the weather.

Douglas A. McIntyre

Posted on: January 28, 2008 – 10:23 am in Food, ,

eBay buying Fraud Sciences

From BloggingStocks

eBay (NASDAQ: EBAY) announced this morning that its PayPal unit is buying Fraud Sciences Ltd. for $169 million. Fraud Sciences is a company based out of Tel Aviv, Israel, and the deal is expected to be finalized within the next 30 days.

Continued at BloggingStocks

Posted on: January 28, 2008 – 10:07 am in Uncategorized

Analyst Goes More Conservative Ahead of SanDisk Earnings (SNDK)

SanDisk Corp. (NASDAQ: SNDK) reports earnings after today’s close and estimates from First Call are $0.64 EPS on $1.27 Billion in revenues.

Interestingly enough, American Technology Research analyst Doug Freedman has just made a more conservative call ahead of today’s results.  Freedman is maintaining his BUY rating, but he is lowering his target to $40 and is lowering estimates for Q4 2007 and for 2008. 

This call reflects more aggressive ASP erosion than anticipated and lower shipment densities.  The call also notes that Apple’s (NASDAQ: AAPL) lack of a new product introduction at MacWorld that pushes NAND density higher is a negative.  AmTech also noted they are hearing of NAND equipment order push-outs and there is a belief of a NAND oversupply for the first half of 2008.  This also notes that Q4 pricing was materially below what was an already lowered guidance.  AmTech lowered the estimates quite a bit:

  • December quarter revenue and EPS estimates from $1.445 Billion and $0.69 to $1.259 Billion and $0.49;
  • Lowered 2008 revenue and EPS estimate to $5.092B and $1.79 from $6.085B and $2.45 (while consensus estimates are $4.88 Billion in revenues and $2.36 EPS.

This cut won’t change consensus estimates that much as there are over 15 analysts making predictions, but it might lower a bar that should have already been expected to be low.  SanDisk shares are down over 2% after the open at $24.99, and the 52-week trading range is $24.29 to $59.75.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 9:50 am in Analyst Calls, Earnings, Semiconductor,

If MercadoLibre Is Already Selling Stock, Should You Buy? (MELI)

MercadoLibre (NASDAQ: MELI) filed to sell up to $292,140,000 in common stock after the close of trading on Friday via JPMorgan and Merrill Lynch.  The problem isn’t that this will just be dilutive to existing shareholders, it is that insiders are also selling shares.  So there is a fear that this might be a "cashing-out" by management.

Some of the proceeds will be for the company: "We intend to use the net proceeds of this offering to fund future selective acquisitions of or investments in businesses, technologies or products that are complementary to our business and for general corporate purposes."

This one was recently given the green light by Jim Cramer and it rallied sharply before this last pullback.   The company provides a platform for buyers and sellers to conduct business in an online trading environment that fosters the development of a large and growing e-commerce platform in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, Venezuela, Costa Rica, the Dominican Republic, and Panama.

Shares have only been public for less than half of a year and this was at $80 just last month.  MercadoLibre’s stock closed at $54.06 on Friday.  In pre-market trading today, shares are trading down over 12% at $46.25 and the 52-week trading range is $21.00 to $81.17.  If the company is already tapping the financial markets less than 6-months of coming public, should new holders be rushing to buy when the company and insider or institutional-backer shareholders are selling?

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 9:25 am in ADR, Internet, Secondary Offering,

More Joy For McDonald’s (MCD) Shareholders

Revenue at McDonald’s (MCD) rose 6% in the fourth quarter to $5.754 billion. Operating income jumped 22% to $1.355 billion.

Asia/Pacific, Middle East and Africa delivered quarterly results driven by an 11.4% comparable sales increase — marking the segment’s highest annual comparable result in more than 15 years. Strong results in most markets, led by China, Japan and Australia contributed to the segment’s robust performance for the year.

The numbers beat expectations.

Douglas A. McIntyre

Posted on: January 28, 2008 – 8:08 am in Food,

Alliance Data (ADS) Deal Falls Apart

Shares of Alliance Data (ADS) are trading off 42% before the open. The Blackstone Group (BX) and Aladdin Solutions have informed Alliance Data that they do not anticipate the condition to closing the merger relating to obtaining approvals from the Office of the Comptroller of the Currency (OCC) will be satisfied.

ADS looks ready to put up a fight. It said it "strongly disagrees with Blackstone’s stated assertions that (i) the OCC’s most recent written proposal to Blackstone’s counsel embodied the OCC’s "final position" with respect to the terms on which the required approvals would be granted and (ii) the OCC is "demanding that extraordinary measures be taken by ADS and various Blackstone entities in connection with the Change in Control Notice" that "represent operational and financial burdens on ADS, Blackstone and it affiliates that cannot be reasonably assumed." Moreover, the Company believes that Blackstone has the ability to cause the condition to closing cited in Blackstone’s letter to be satisfied.

According to the company, Blackstone’s notice did not assert any breach of the merger agreement by Alliance Data or the occurrence or anticipated occurrence of any material adverse effect.

It looks like a nice, big lawsuit.

Douglas A. McIntyre

Posted on: January 28, 2008 – 7:54 am in Mergers and Buy Outs, ,

Pre-Market Stock News (January 28, 2008)

Alliance Data Systems (ADS) was informed by Blackstone that conditions likely won’t be satisfied to complete the merger; stock trading down close to 40%.
American Express (AXP) reports earnings today with estimates at $0.71 EPS.
Biogen Idec (BIIB) said that Carl Icahn has given notice that he wants to nominate 3 directors to the board.
Black & Decker (BDK) $1.06 EPS vs. $1.03 estimate; lowered guidance for 2008 to $5.40 to 5.90 vs. $6.10+ estimates.
Bluelinx (BXC) now sees wider losses than expected.
Corning (GLW) $0.40 EPS vs. $0.39 estimate; Revenue $1.58B vs. $1.55B est.
eBay (EBAY) announced that PayPal has agreed to acquire Fraud Sciences Ltd. in Israeli for roughly $169 million.
FPL Group (FPL) $0.71 EPS vs. $0.67 estimates.
Halliburton (HAL) $0.74 EPS vs. $0.69 estimates.
Matria Healthcare (MATR) is being acquired by Inverness Medical (IMA) for $39.00 per share, with a breakdown of $6.50 per share in cash and $32.50 per share in convertible preferred stock.
McDonalds (MCD) set to report earnings, estimate $0.71.
Napster (NAPS) announced the launch of the Napster Mobile music service with Ericsson phones at Telecom Italia through its mobile brand TIM.
Sallie Mae (SLM) received commitments for $31 Billion from a consortium of banks led by Bank of America, JPMorgan Chase, Barclays Capital, Deutsche Bank, Credit Suisse, and The Royal Bank of Scotland, and from UBS; new financing will replace the $30 billion interim financing put in place; will drop suit related to past failed merger.
Sears Holdings (SHLD) Aylwin Lewis is stepping down as CEO of Sears.
Stanley Works (SWK) $1.11 EPS vs. $1.10 estimate; reaffirmed 2008 EPS at $4.20 to $4.40 versus $4.37 estimate.
Superior Offshore (DEEP) announced E. Donald Terry will be Interim President/CEO effectively immediately.
Synta (SNTA) and GlaxoSmithKline (GSK) announced elesclomol for metastatic melanoma was granted orphan drug designation by FDA; SNTA trading up 17%.
Ultralife Batteries (ULBI) received $4.4 million in military battery orders from the U.S. Defense Department.
Verizon (VZ) $0.62 EPS vs $0.62 estimate; added 2 million total net wireless customers; now has over 1 million FiOS TV customers.

Jon C. Ogg
January 28, 2008

Posted on: January 28, 2008 – 7:54 am in Pre-Market Activity, , , , , , , , , , , , , , ,