24/7 Wall St. » PDGI

PharmaNet Going Private (PDGI)

247wallst — Tue, 03 Feb 2009 13:42:43 +0000

This may be far from a super-merger and may be far from a return or thrust from private equity. But it is a deal in the drug and research sector. PharmaNet Development Group, Inc. (NASDAQ: PDGI) has agreed to be acquired by JLL Partners, Inc.

JLL will commence a tender offer topurchase all of the outstanding shares of PharmaNet fot$5.00per share in cash. This is a huge premium when youconsider that the stock closed at $1.34 yesterday. But you also have tokeep in mind that the 52-week trading range of $0.67 to $42.77.

This values the company at roughly $100 million and will be financed bya $250 million equity commitment from JLL. This includes the necessaryfunds to retire the $144 million principal amount of outstandingconvertible notes.

The transaction is subject to the valid tender of a majority ofPharmaNet common stock, regulatory approvals and other customaryconditions

Assuming all goes as planned, the tender offer is expected to close bythe end of the first quarter. That implies less than 60 days fromnow. Shares were halted for trading and are set to resume at 9:00 AMEST.

Jon C. Ogg
February 3, 2009

Posted in Drug companies, Mergers and Buy Outs, Private Equity Tagged: PDGI

The 52-Week Low Club (PDGI)(PRXL)(LVS)(USG)(MF)(CVG)

247wallst — Tue, 28 Oct 2008 15:01:16 +0000

Convergys (CVG) Posts a loss and weak forecast. Drops to $6.82 from 52-week high of $19.18.

MF Global (MF) No major news. Drops to $1.93 from 52-week high of $32.20.

USG Corporation (USG) May have violated lending agreement. Falls to $14.23 from 52-week high of $40.25.

Las Vegas Sands (LVS) Casino stocks out of vogue. Sells down to $4.32 from 52-week high of $148.76.

PAREXEL International (PRXL) Revenue shortfall. Plummets to $6.84 from 52-week high of $36.16.

Pharmanet (PDGI) No news. Sells off to $1 from 52-week high of $43.02.

Douglas A. McIntyre

Posted in HI/LOW Tagged: CVG, LVS, MF, PDGI, PRXL, USG

The 52-Week Low Club 9/12/2008 (AIG)(MER)(LEH)(PDGI)

247wallst — Fri, 12 Sep 2008 14:56:12 +0000

American International Group (AIG) Market worries that balance sheet is tearing to pieces. Down to $11.49 from 52-week high of $70.13.

Lehman Brothers (LEH) Going out of business sale. Drops to $3.17 from 52-week high of $67.73.

Merrill Lynch (MER) Dragged into the whirlpool. Pushed down to $16.60 from 52-week high of $78.66.

PharmaNet Development (PDGI) Says it will miss guidance and loses half its value. Plunges to $9 from 52-week high of $43.05.

Douglas A. McIntyre

24/7 Wall St. Most Overpaid CEO Of The Day: PharmaNet Development (PGDI) CEO Jeffrey P. McMullen

247wallst — Fri, 12 Sep 2008 08:45:47 +0000

PharmaNet Development (PDGI), a clinical services company, lowered its 2008 forecast for the second time, projecting a loss of 25 cents to 58 cents per share on $358 million to $366 million in revenue.

Investors were unusually upset and sent the stock down 52% to $10.07, a new 52-week low. The period high was $43.05.

The company’s CEO Jeffrey P. McMullen does not have to worry much.

McMullen had a base salary of $695,000 last year. He even got a raise to $740,000 for 2008. In 2007, Mullen picked up a bonus check for $886,000.

According to the PDGI proxy, Mr. McMullen’s employment agreement awards him perquisites up to the amount of $32,500. If there is change of control at the company he gets 36 months of his base pay.

That’s a very good deal for a company which has wiped out $600 million of its market cap.

Douglas A. McIntyre

The 52-Week Low Club (NWK)(MGM)(PDGI)(RDEN)

247wallst — Thu, 01 May 2008 14:48:56 +0000

Network Equipment (NWK) Misses numbers and gets downgraded. Falls to $3.95 from 52-week high of $15.75.

MGM Mirage (MGM) Slowdown in casino earnings at key rival. Sells off to $47.89 from 52-week high of $100.50.

Pharmanet Development (PDGI) Awful quarter. Shares dumped to $15.41 from 52-week high of $43.05.

Elizabeth Arden (RDEN) Posts loss. Drops to $13.13 from 52-week high of $28.05.

Hologic (HOLX) Profit picture falls apart. Sells down to $21.25 from 52-week high of $36.44.

Irobot (IRBT) CFO departs as do solid numbers. Falls to $13.19 from 52-week high of $24.30.

Douglas A. McIntyre

Top 10 Pre-Market Analyst Calls (NLY, CTV, ENDP, FSLR, HOV, JNY, OIIM, PDGI, V, YUM)

247wallst — Thu, 01 May 2008 07:24:17 +0000

These are not all of the analyst calls affecting shares but these are ten that we are focused on this Thursday morning:

Annaly Mortgage (NYSE: NLY) cut to Hold at Citigroup.
CommScope (NYSE: CTV) Raised to Buy from Neutral at UBS.
Endo Pharmaceuticals Cut to Neutral at R.W. Baird.
First Solar (NASDAQ: FSLR) cut to Perform at Oppenheimer
Hovnanian (NYSE: HOV) cut to Sell at UBS.
Jones Apparel (NYSE: JNY) Raised to Buy from Hold at Lazard.
O2Micro (NASDAQ: OIIM) raised to Buy at Piper Jaffray.
PharmaNet Development (NASDAQ: PDGI) downgraded to Hold at Jefferies; downgraded to Neutral at R.W. Baird.
Visa (NYSE: V) Started as Equal-weight at Lehman Brothers.
YUM! Brands (NYSE: YUM) cut to Neutral at UBS.

Jon C. Ogg
May 1, 2008

Pre-Market Analyst Calls (November 5, 2007)

247wallst — Mon, 05 Nov 2007 07:46:03 +0000

ACA cut to Underperform at Credit Suisse.
ACW raised to Neutral at UBS.
AMSC started as Buy at Jefferies.
ATPG cut to Underperform at RBC.
BSC cut to Equal Weight at Lehman.
BSY cut to Neutral at Merrill Lynch.
CNP raised to Buy at Jefferies.
CPT cut to Neutral at B of A.
DRE cut to Neutral at UBS.
FSLR started as Sector Perform at CIBC.
GLF raised to Buy at Jefferies.
GNA raised to Outperform at CIBC.
HD cut to Hold at Deutsche Bank.
LLY cut to Underweight at HSBC.
LOW cut to Hold at Deutsche Bank.
MER cut to Equal Weight at Lehman.
NLC raised to Neutral at UBS.
PDGI raised to BUy at Jefferies.
PVTB raised to Overweight at JPMorgan.
TUES raised to Outperform at Piper Jaffray.
WCG raised to Buy at Jefferies.
WST raised to Buy at UBS.

Jon C. Ogg
November 5, 2007