Investing

Against the Grain: Mid-Day Losers on a Winning Day (INSM, ALTH, SPN, CDTI, S, TGAL)

Markets are up sharply this morning on more reassurance from Germany and France that Europe’s bank would have access to sufficient capital. Even the lack of a specific plan proved irresistible to investors searching for good news on the global economy. As always, though, there were several stocks that moved in the opposite direction. Among these are Insmed, Inc. (NASDAQ: INSM), Allos Therapeutics, Inc. (NASDAQ: ALTH), Superior Energy Services, Inc. (NYSE: SPN), Clean Diesel Technologies, Inc. (NASDAQQ: CDTI), Sprint Nextel Corp. (NYSE: S), and Tegal Corp. (NASDAQ: TGAL).

Insmed, Inc. (NASDAQ: INSM) shares are down more than -30%, at $3.01 after posting a new 52-week low of $2.75 this morning. The FDA has requested another study of the company’s Arikace treatment for cystic fibrosis patients suffering from a lung infection. The request continues a clinical hold on late-stage testing of the drug until the company completes a new nine-month study and to provide information on the risk-benefit profile of Arikace.

Allos Therapeutics, Inc. (NASDAQ: ALTH) is down more than -17%, at $1.45, after posting a new 52-week low of $1.38 earlier this morning. The company’s proposed acquisition by AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG) has been withdrawn following the acquisition of 5.8% of AMAG shares by a hedge fund manager opposed to the deal who has offered $18/share for AMAG. Two other investment firms that together own about a third of Allos’s shares also oppose the Allos acquisition.

Superior Energy Services, Inc. (NYSE: SPN) is down more than -17%, at $22.66, after posting a new 52-week low of $22.19 this morning. The company has agreed to buy another oil field services company, Complete Production Services, Inc. (NYSE: CPX) for $2.7 billion. The deal includes $555 million in cash ($7/share) and 0.945 shares of Superior stock for each share of Complete stock. The combined company would have a market cap of around $4 billion, still far smaller than other industry players.

Clean Diesel Technologies, Inc. (NYSE: CDTI) is down more than -12.5%, at $2.91, in a 52-week range of $0.79-$44.38. The company makes and sells emissions control systems and other products for both heavy-duty diesel vehicles and lighter vehicles fueled by gasoline, diesel, and natural gas. Since posting the high last October, the stock has been on a steadily falling trend with the exception of about three or four price spikes that had the short-term effect of doubling the stock’s price before it turned downward again.

Sprint Nextel Corp. (NYSE: S) shares are down about -8.5%, at $2.21, after setting a new 52-week low this morning of $2.20. The company held an analysts meeting last Friday which had opposite effect from what it intended. Six firm put downgraded the stock this morning: Deutsche Bank to ‘hold’ from ‘buy’ with a $3 target price cut; JPMorgan from ‘overweight’ to ‘neutral’; Collins Stewart from ‘buy’ to ‘neutral’ with a $3 price target; Kaufman Brothers from ‘buy’ to ‘hold’; Mizuho from ‘buy’ to ‘neutral’; and Raymond James from ‘strong buy’ to ‘outperform’.

Tegal Corp. (NASDAQ: TGAL)is down more than -13%, at $2.03, in a 52-week range of $1.50-$4.95. The company participates in large scale solar power projects. The company has been trying to auction its intellectual property portfolio and was forced last week to extend the deadline for bids by two weeks. That pushed the shares down to the 52-week low and the continuing softness no doubt signals that investors are worried about how successful the IP sale will be.

Paul Ausick

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