Jim Cramer Blog

General Motors (NYSE: GM - News) and Ford (NYSE: F - News): Cramer is skeptical about GM comments that subprime problems were to blame for the company's lackluster performance when other sectors such as retail have reported great numbers; "I mean, we did go up 15 out of 16 days, despite the fact that we were torching our houses to get the money from Allstate." He added although Ford is a turnaround story, there is not yet tangible evidence.
Barclays' (NYSE: BCS - News), Fifth Third (NasdaqGS: FITB), Comerica (NYSE: CMA - News), SunTrust (NYSE: STI - News), America (NYSE: BAC - News): On Barclay's offer for ABN Amro, Cramer would buy FITB, CMA, and STI here, but comments BAC has acquisition addiciton; "There is no 12-step program for what BAC is doing... They would have to hit bottom. They have to hit banking skid row."
AstraZeneca (NYSE: AZN - News) Medimmune (NasdaqGS: MEDI), Celgene (NasdaqGS: CELG), Cephalon (NasdaqGS: CEPH), Johnson Controls (NYSE: JCI - News), Cummins (NYSE: CMI - News): Cramer called AZN's acquisition of MEDI a "classic overpay" and may make CELG and CEPH seem undervalued. As time was running out, Cramer said, "I like coal! Johnson Controls ... Cummins $9!"
Published By SeekingAlpha

Labels: AZN, BAC, BCS, CEPH, CMA, CMI, GM, JCI, Jim Cramer, Jim Cramer's Stop Trading, MEDI, STI

Stocks moved modestly to the downside today on profit taking in the wake of Friday's strong advance despite the announcement of big merger deals in the banking and biotechnology sectors. Oil prices also rose sharply, topping $65 a barrel in New York trading as traders reacted to instability in Nigeria following national elections in the oil-producing nation that opponents claim were rigged in the government's favor. The 10-year Treasury note moved higher to begin the week.
Today's news was dominated by M&A activity. As anticipated, Britain's Barclay's (NYSE: BCS - News) announced that it has agreed to acquire Dutch bank ABN Amro Holdings (NYSE: ABN - News) for just over $91 billion. As part of the deal, ABN Amro said it would sell its Chicago-based LaSalle National Bank subsidiary to Bank of America (NYSE: BAC - News) for $21 billion. Proceeds from that sale will be distributed to shareholders of the combined banks after the sale is concluded. The offering price is slightly below last Friday's close, but represents a more than 30% premium over the price ABN shares were trading at when the talks began.
The Barclay's-ABN combination will create the world's fifth-largest bank and world's largest institutional asset manager. The two companies had been locked in exclusive negotiations for the last month. Recently, Barclay's rivals Royal Bank of Scotland and Santander Central Hispano (NYSE: STD - News) sought to offer their own bids of ABN. The Dutch bank said it favors Barclay's offer, but has not ruled out a competing bid should one arise. The other banks want to see details of the LaSalle transaction before deciding whether to proceed with bids of their own.
In other merger news, Britain's AstraZeneca (NYSE: AZN - News) said it would buy biotech MedImmune (Nasdaq: MEDI - News) for $15.2 billion, or $58 a share, which is a 21% premium over Friday's closing price. MedImmune's board had put the company up for sale under pressure from major shareholders. Its top products include the FluMist influenza treatment and Synagis, a treatment for respiratory problems in infants, and it has a solid pipeline of drugs in development. MedImmune's shares rose 17.8% on the news. Subscribers may read our take on this deal and its implications for other pharmaceutical and biotechnology companies in today's edition.
In earnings news, Kimberly Clark (NYSE: KMB - News), which makes Kleenex tissue and other paper products, said its Q1 profit jumped 70% on strong sales growth and cost cutting. Revenue rose 8%. The company, however, also noted that rising pulp prices could impact future results. Its shares declined -1.2%. Like other companies with significant overseas sales, Kimberly Clark's results were aided by the weak U.S. dollar, which makes its products cheaper overseas.
Novartis (NYSE: NVS - News) reported an 11% increase in first-quarter earnings. Its profit rose to $2.17 billion, compared with $1.96 billion in the same quarter last year. Strong sales of its hypertension drug Diovan and its leukemia treatment, Gleevec, helped to fuel an 18% increase in revenue to $9.8 billion. Shares of toymaker Hasbro (NYSE: HAS - News) added 7.7% after the company reported a profit of nearly $33 million, or 19 cents a share, for the quarter that ended April 1st, compared with a loss of -$4.9 million, or -3 cents per share, in last year's comparable period.
By the BullMarket.com Staff

Labels: ABN, AZN, BAC, BCS, HAS, KMB, MEDI, NVS, STD

AstraZeneca PLC said Monday it is buying U.S.-based biotech drugmaker MedImmune Inc. in a $15.6 billion deal that will allow the British company to enter the vaccines market.
AstraZeneca, which has been looking to strengthen its pipeline of future drugs as it faces patent challenges and escalating generic competition, will pay $58 a share for MedImmune, a 21 percent premium to the stock's close on Friday.
The deal, which AstraZeneca hopes to close in June, will increase the company's proportion of biotechnology drugs in its pipeline from 7 percent to 27 percent, and enlarge its total pipeline by 45 projects to 163 projects.
That includes two late-stage products being developed by MedImmune, which is based in Gaithersburg, Md. The company has more than 2,500 employees in facilities across the United States, Britain and the Netherlands.

Labels: AstraZeneca plc, AZN, MEDI, MedImmune Inc.

Stocks started the week on a positive note with all three major indexes posting gains of close to 1%. The move follows a down week last week as economic data indicated that, despite signs pointing to a slowing economy, inflation was not being held in check. Tomorrow, the Federal Reserve Open Market Committee begins its next policy meeting. While a rate change isn't expected when the meeting wraps up on Wednesday, investors are hoping the FOMC's policy statement will shed some light on which way it is leaning when it comes to adjusting interest rates later this year.
While economic data and policy statements are on the radar, both were absent today, leaving investors to find direction from a wave of M&A activity. U.S. investors also took a cue from a strong move higher in overseas markets, where recent weakness had helped contribute to uneasiness in the U.S. market. Concerns about the subprime mortgage crisis, meanwhile, remained on the sidelines for today at least, even as the National Association of Home Builders said its index of sales activity for new single-family housing fell to 36 from a reading of 39 in February, which itself was revised down from 40.
Leading the merger headlines were Barclays (NYSE: BCS - News) and ABN AMRO (NYSE: ABN - News) on reports that the two European banks could combine in a deal worth as much as $80 billion. ABN AMRO later confirmed that it is in exclusive talks with Barclays. Community Health Systems (NYSE: CYH - News), meanwhile, topped a private equity bid with a $5.1 billion offer for Triad Hospitals (NYSE: TRI - News) in a deal that would create the country's largest publicly traded hospital operator.
The mergers extended to the oil patch as well, where shallow-water driller Hercules Offshore (Nasdaq: HERO - News) announced its plans to buy oil and natural gas driller TODCO (NYSE: THE - News) for about $2.4 billion. The deal would create the world's fourth-largest fleet of shallow-water rigs. Based on Friday's closing prices, Hercules' offer represents a 28% premium. Elsewhere, utility and telecom infrastructure contractor Quanta Services (NYSE: PWR - News) made a $1.3 billion offer for InfraSource Services (NYSE: IFS - News), a 17% premium. The deal expands Quanta's reach both in terms of geography and services offered.
Today's M&A activity also included a pair of firms announcing plans to be taken private. ServiceMaster (NYSE: SVM - News), parent of Terminix pest control and a provider of housecleaning and landscaping services, was the target of a $4.5 billion bid led by private equity firm Clayton, Dubilier & Rice. Finally, shipping firm EGL (Nasdaq: EAGL - News) announced it has agreed to a management-led buyout worth $1.7 billion. The $38 per share bid eclipsed a prior offer by $2 per share. The stock ended up 6%.
The day's big loser was biotech AtheroGenics (Nasdaq: AGIX - News), which plunged -61% on news that its experimental pill to treat atherosclerosis -- a buildup of fat, cholesterol, and other substances in the inner lining of arteries -- failed to meet its target in a late-stage trial. AtheroGenics had partnered with AstraZeneca (NYSE: AZN - News) on the trial, but Zeneca will now have the opportunity to break off the partnership.
By the BullMarket.com Staff

Labels: ABN, AGIX, AZN, BCS, CYH, EAGL, HERO, IFS, PWR, SVM, THE, TRI

AGL Resources (NYSE:ATG - News) reported fourth-quarter earnings of $47 million, or 60 cents a share, and said it expects a profit of $2.75 to $2.85 a share for fiscal 2007. The Atlanta-based energy services provider also said its board has approved an 11% hike in its annual dividend rate to $1.64 a share.
Alliant Techsystems (NYSE:ATK - News) reported third-quarter earnings rose 8.8% on 17% higher revenue. Earnings reached $51.2 million, or $1.53 a share, from $47.1 million, or $1.26, in the year-earlier period. Revenue rose to $900.3 million from $770 million. A survey of analysts by Thomson Financial produced consensus estimates of $1.32 a share on revenue of $844 million. ATK lifted its estimate of earnings for fiscal 2007 to $5.10 to $5.15 a share, from its previous estimate of $4.95 to $5.05. And it now estimates sales at $3.5 billion, up from an earlier estimate of more than $3.45 billion.
American Standard Cos. Inc. (NYSE:ASD - News) reported fourth-quarter earnings of $114.3 million, or 56 cents a share, up from a year-ago profit of $64.4 million, or 30 cents a share. On an adjusted basis, excluding certain items, the company earned $104.5 million, or 51 cents a share, in the latest quarter. Sales at the Piscataway, N.J., maker of air conditioning systems as well as bath and kitchen products rose to $2.7 billion in the three months ended Dec. 31 from $2.55 billion in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 51 cents a share in the December period. Looking ahead, the company forecast adjusted earnings of $3.15 to $3.25 a share for fiscal 2007 on sales growth of about 8%. For the first quarter, it sees adjusted earnings of 48 to 52 cents a share with sales rising about 6%. Wall Street's current consensus estimate is for a profit of $3.08 a share for the year and 48 cents a share in the March period. The company also announced a restructuring plan calling for the separation of its three businesses.
Archer Daniels Midland (NYSE:ADM - News) said higher prices for the biofuel offset rising corn costs in its fiscal second quarter. Overall corn processing operating profits rose $99 million for the quarter to $335 million. "Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs," the company said. The Decatur, Ill.-based company also said fiscal second-quarter earnings rose to $441.3 million, or 67 cents a share, from $367.7 million, or 56 cents a share, a year earlier. Revenue for the quarter ending December increased 18% to $10.98 billion from last year's $9.3 billion. Analysts surveyed by Thomson Financial had been expecting earnings of 60 cents a share and revenue of $9.52 billion, on average.
Armor Holdings Inc. (NYSE:AH - News) said fourth-quarter net income rose to $37.8 million, or $1.02 a share, from $37.6 million, of $1.04 a share, during the same period in the prior year.
AstraZeneca (NYSE:AZN - News) announced plans to cut 3,000 jobs over the next three years. It will take $500 million in charges, of which $300 million will be in cash, the drugmaker said. The company also reported that its fourth-quarter profit before tax jumped 25% to $2.1 billion, after sales climbed 14% to $7.15 billion. The Anglo-Swedish pharmaceutical said sales of its top five growth products -- Nexium, Seroquel, Crestor, Arimidex and Symbicort -- rose 23% to $3.7 billion. It hikes its dividend 32% for the year to $1.72 a share and plans to buy back $4 billion in shares during 2007. AstraZeneca said 2007 earnings are seen in the range of $3.80 to $4.05 a share, excluding the impact of U.S. sales of Toprol XL and any productivity initiatives.
Brink's Co. (NYSE:BCO - News) reported fourth-quarter net income more than doubled due to earnings from discontinued operations. Fourth-quarter net reached $126.6 million, or $2.71 a share, from $47.7 million, or 83 cents, in the year-earlier period. Shares outstanding fell 19% to 46.7 million. Earnings from continuing operations were 71 cents a share against 11 cents as profit and revenue rose in both of Brink's operating units. Revenue rose 14% to $755.9 million from $663.1 million. A survey of analysts by Thomson Financial produced consensus estimates of 62 cents of profit on $723 million of revenue.
Carbo Ceramics (NYSE:CRR - News) reported fourth-quarter earnings of $15 million, or 61 cents a share, up from a year-ago profit of $10.4 million, or 43 cents a share. Revenue rose in the latest three months to $87 million from $63.6 million a year earlier.
Celgene (NasdaqGS:CELG - News) fourth-quarter earnings rose to $22.9 million, or 6 cents a share, from $3.93 million, or a cent a share, a year earlier. The company said adjusted earnings rose to $74.5 million, or 18 cents a share, from $10.2 million, or 3 cents a share. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of 18 cents a share on revenue of $268.4 million. The Summit, N.J., pharmaceutical company said total revenue rose 84% to $275 million from $149.3 million in the year-ago period, helped by sales of Revlimid and Thalomid. Product sales rose to $251.9 million from $128.7 million.
Children's Place Retail Stores (NasdaqGS:PLCE - News) said it earned $38 million in the third quarter as sales rose 25% to $550.4 million, according to preliminary data. The figures may be revised as the company continues to work on a restatement of past results to correct the accounting for stock option grants. Same-store sales rose 14% in the quarter, the Secaucus, N.J. retailer said in a statement. Thomson Financial was looking for sales of $548.5 million. The company said it now expects net income of $45 to $48 million in the fourth quarter. For January, same-store sales are expected to decline at a mid-single digit rate at its Children's Place stores and rise at a pace in the mid-twenties at Disney stores. For fiscal 2007, the company is expecting earnings of $3.55 to $3.65 a share.
Christopher & Banks Corp. (NYSE:CBK - News) said it expects earnings of 7 to 8 cents a share for the fourth quarter, below Wall Street's consensus estimate for a profit of 14 cents a share. The Minneapolis-based women's clothing retailer said aggressive markdowns in the quarter led to lower average unit retails.
Clorox (NYSE:CLX - News) said its second-quarter earnings rose 16%, boosted by record sales of its Fresh Step cat litter, higher sales of Kingsford grilling products and increased shipments of home-care products in Mexico and Argentina.
Concur Technologies Inc. (NasdaqGM:CNQR - News) reported first-quarter net earnings of $993,000, or 2 cents a share, up 53% from $648,000, or 2 cents a share, during the year-ago period. There were 40.2 million shares outstanding during the quarter compared with 36.5 million a year ago.
Cutera (NasdaqGS:CUTR - News) shares rose after the Brisbane, Calif.-based company reported fourth-quarter net earnings of $7.12 million, or 50 cents a share, up from $5.81 million, or 41 cents a share, in the year-ago period. Excluding items, earnings came in at 55 cents a share. Revenue rose to $30.5 million from $24 million. Analysts polled by Thomson Financial were expecting earnings of 41 cents a share on revenue of $30.2 million. The company expects first-quarter earning of 21 cents a share, or 28 cents a share excluding items, on revenue of $26 million, and 2007 earnings of $1.30 a share, or $1.57 a share excluding items, on revenue of $126 million.
Dell (NasdaqGS:DELL - News) named company founder Michael Dell chief executive effective immediately, to replace Kevin Rollins. The Round Rock, Texas, computer company said Dell will retain his duties as chairman.
Eli Lilly (NYSE:LLY - News) was upgraded to overweight from neutral at Prudential Equity, which cited expectations for earnings growth of around 10% over the next four years as well as an attractive current valuation. "Due to low generic exposure and what we believe is an increasingly stable base business, we see Eli Lilly growing earnings at above average rates for the next several years," Prudential said.
Elizabeth Arden (NasdaqGS:RDEN - News) posted a fiscal second-quarter profit of $26.2 million, or 92 cents a share, as sales rose 18.8% to $410.8 million. Looking ahead, the New York-based beauty products provider lifted the lower end of its outlook for fiscal 2007 earnings to $1.15 to $1.20 a share from the prior projection of $1.10 to $1.20 a share.
Gilead Sciences Inc. (NasdaqGS:GILD - News) swung to a fourth-quarter loss of $1.67 billion, or $3.62 a share. In the same period the year before, the company posted net earnings of $281.6 million, or 59 cents a share.
Green Mountain Coffee (NasdaqGS:GMCR - News) shares jumped after the company reported first-quarter earnings of $2.4 million, or 30 cents a share, down from a year-ago profit of $3 million, or 38 cents a share. On a non-GAAP basis, the Waterbury, Vt.-based coffee provider earned $3.7 million, or 46 cents a share, in the latest quarter. Looking ahead, Green Mountain sees non-GAAP earnings of $2.11 to $2.17 a share in fiscal 2007.
Helmerich & Payne (NYSE:HP - News) reported first-quarter earnings of $110.8 million, or $1.06 a share, on operating revenue of $386.4 million. In the same period a year earlier, the company earned $50.8 million, or 48 cents a share, on revenue of $255.4 million. The latest results include a gain of 15 cents a share from the sale of portfolio securities, while last year's report reflects 2 cents a share in similar gains.
Published By MarketWatch

Labels: ADM, AH, ASD, ATG. ATK, AZN, BCO, CBK, CELG, CLX, CNQR, CRR, CUTR, DELL, GILD, GMCR, HP, LLY, PLCE, RDEN

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Cisco (NASDAQ:CSCO - News) has filed a lawsuit against Apple (NASDAQ:AAPL - News) over copyright infringement of the name iPhone. CSCO claims that the company has owned the rights to the name since 2000. CSCO's PowerRating is 5, and AAPL's PowerRating is 3.
The Buckle (NYSE:BKE - News) has scheduled a 3:2 stock split for Friday, January 12. BKE's PowerRating is 6.
Cerebus Capital Management has announced interest in acquiring the real-estate investment trust Equity Office Properties (NYSE:EOP - News). EOP's PowerRating is 5.
AstraZeneca (NYSE:AZN - News) and Bristol-Meyers (NYSE:BMY - News) announced a new $1 billion collaboration for diabetes studies. AZN's PowerRating is 5, and BMY's PowerRating is 6.
Next week earnings seasons kicks off in full force starting on Tuesday. Charles Schwab (NASDAQ:SCHW - News), US Bancorp (NYSE:USB - News) and Wells Fargo (NYSE:WFC - News) all report earnings before the bell, so watch for action as traders align their positions ahead of the announcements. SCHW's PowerRating is 5, USB's PowerRating is 6, and WFC's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, AZN, BKE, BMY, CSCO, EOP, Hot Stocks, SCHW, USB, WFC

Cenveo Inc. (NYSE:CVO - News) shares rose 9.3% after the company agreed to acquire Cadmus Communications Corp. (NASDAQ:CDMS - News) for $24.75 a share in cash. The deal represents an acquisition premium of 18%. The total value of the transaction, including assumption of debt, is expected to be about $430 million, Cadmus said. A combined Cenveo and Cadmus would rank as the No. 3 graphics-communications company in North America with revenue of more than $2 billion, according to Stamford, Conn.-based Cenveo.
Crucell N.V. (NASDAQ:CRXL - News) shares climbed 2.2% after the company signed a cross-licensing agreement with Merck & Co, Inc. Under the deal, Merck will be allowed to use Crucell technology on an exclusive basis in undisclosed vaccine fields. In return Crucell will receive access to Merck's large-scale manufacturing technology for its AdVac-based malaria and TB vaccines.
InfoSonics' (NASDAQ:IFON - News) shares leapt 44% after the San Diego based-company said it has reached an agreement to distribute handsets for LG Electronics in the Caribbean and certain countries in Latin America. Financial terms of the deal weren't disclosed. InfoSonics said it has already received approval, certification and purchase orders from carriers in the region and will be delivering its first shipments in the coming weeks.
Inverness Medical Innovations (AMEX:IMA - News) shares rose 2.1% after the company formed a joint venture with Procter & Gamble (NYSE:PG - News) to develop, manufacture and market consumer diagnostic products outside of the fields of cardiology and diabetes. P&G will pay $325 million in cash for its 50% interest in the joint venture, the companies said. The deal is expected to close in the latter half of the first quarter of 2007, subject to regulatory approval and normal closing conditions.
Medwave Inc. (NASDAQ:MDWV - News) shares added 9.5% after the company named Ramon Burton as chief financial officer. Additionally, the Danvers, Mass.-based maker of blood pressure monitoring technology said it has appointed James Hawley to the board. Hawley, currently chief executive of Diversified Graphics Inc., will serve as chairman of the company's audit committee.
OxiGene Inc. (NASDAQ:OXGN - News) shares rose 5% after the Waltham, Mass.-based pharmaceutical company reported positive results from a Phase II study of combretastatin (CA4P) in combination with paclitaxel and carboplatin in patients with advanced imageable malignancies. Topline data indicate that the objectives of the study were met, the company said. The objectives were to identify optimal dose of CA4P for blood flow shutdown and to demonstrate safety and efficacy of CA4P in combination with paclitaxel and carboplatin.
PFSweb (NASDAQ:PFSW - News) shares jumped 18% after the Plano, Texas-based company said it has signed an agreement with Fathead LLC to provide order processing and fulfillment services. Financial terms of the deal were not disclosed. The agreement with Fathead was included in PFSweb's previously announced service fee contracts for the year, which will bring in estimated annual revenue of $12 million upon full implementation.
Sempra Energy (NYSE:SRE - News) shares rose 1.6% after the company said it expects 2006 earnings from continuing operations, excluding asset sales, to exceed $4 a share. The San Diego energy services holding company had previously forecast earnings between $3.50 and $3.70 a share. The company also said it will sell its interests in two Argentine natural-gas distribution companies.
Targacept (NASDAQ:TRGT - News) shares jumped 20% after the company said it's received confirmation from AstraZeneca (NYSE:AZN - News) of plans to continue development of AZD3480 in Alzheimer's disease and cognitive deficits in schizophrenia. The determination triggers a $20 million milestone payment to Targacept.
Vascular Solutions (NASDAQ:VASC - News) shares gained 17% after the company said the Food and Drug Administration has approved its premarket approval supplement for the D-Stat Flowable hemostat to reduce the incidence of clinically significant hematomas during the implantation of pacemakers or other devices.
By Michael Baron of Marketwatch

Labels: AZN, CDMS, CRXL, CVO, IFON, IMA, MDWV, OXGN, PFSW, PG, SRE, TRGT, VASC

Cenveo Inc. (NYSE:CVO - News) said it's reached a definitive agreement to acquire all outstanding stock of Cadmus Communications Corp. (NASDAQ:CDMS - News) for $24.75 a share in cash. The deal represents an acquisition premium of 18% over Tuesday's closing price of $20.98 on Cadmus shares. The total value of the transaction, including assumption of debt, is expected to be about $430 million, Cadmus said. A combined Cenveo and Cadmus would rank as the No. 3 graphics-communications company in North America with revenue of more than $2 billion, according to Stamford, Conn.-based Cenveo.
Crucell N.V. (NASDAQ:CRXL - News) signed a cross-licensing agreement with Merck & Co, Inc. . Under the deal, Merck will be allowed to use Crucell technology on an exclusive basis in undisclosed vaccine fields. In return Crucell will receive access to Merck's large-scale manufacturing technology for its AdVac-based malaria and TB vaccines.
HCC Insurance Holdings' (NYSE:HCC - News) shares rose after the company said it's completed an independent review of its stock option granting practice and recorded a gross non-cash compensation expense of $26.6 million related to corrections of errors in the years 1997 through and including 2005. The company stated the charge had no impact on its reported net revenue, cash or cash flow for the period but it did result in a net after-tax decrease in shareholders' equity of $3.3 million. Houston-based HCC said its conclusion of the review and subsequent completion of certain quarterly and annual financial filings with the Securities and Exchange Commission will have "cured any possible Event of Default" stemming from its failure to deliver the reports in a timely manner under the provisions of certain debt offerings. In addition, HCC posted earnings of $93.3 million, or 80 cents a share, for the third quarter, up from a year-ago profit of $7.4 million, or 7 cents a share. Last year's third quarter reflects the impact of hurricane-related losses and the effect of reinsurance commutations.
InfoSonics' (NASDAQ:IFON - News) shares gained after the San Diego based-company said it has reached an agreement to distribute handsets for LG Electronics in the Caribbean and certain countries in Latin America. Financial terms of the deal weren't disclosed. InfoSonics said it has already received approval, certification and purchase orders from carriers in the region and will be delivering its first shipments in the coming weeks.
Inverness Medical Innovations (AMEX:IMA - News) shares rose after the company formed a joinr venture with Procter & Gamble (NYSE:PG - News) to develop, manufacture and market consumer diagnostic products outside of the fields of cardiology and diabetes. P&G will pay $325 million in cash for its 50% interest in the joint venture, the companies said. The deal is expected to close in the latter half of the first quarter of 2007, subject to regulatory approval and normal closing conditions.
Monster Worldwide Inc. (NASDAQ:MNST - News) said its board has elected Philip Lochner Jr. as a director, effective immediately. Among other prior positions, Lochner has served as a commissioner with the Securities and Exchange Commission. Lochner will join the special committee investigating the company's historical stock-option practices, and serve on the committee addressing related civil litigation.
PFSweb (NASDAQ:PFSW - News) shares leapt after the Plano, Texas-based company said it has signed an agreement with Fathead LLC to provide order processing and fulfillment services. Financial terms of the deal were not disclosed. The agreement with Fathead was included in PFSweb's previously announced service fee contracts for the year, which will bring in estimated annual revenue of $12 million upon full implementation.
Sempra Energy (NYSE:SRE - News) said it expects 2006 earnings from continuing operations, excluding asset sales, to exceed $4 a share. The San Diego energy services holding company had previously forecast earnings between $3.50 and $3.70 a share. The company also said it will sell its interests in two Argentine natural-gas distribution companies.
Targacept (NASDAQ:TRGT - News) shares jumped after the company said it's received confirmation from AstraZeneca (NYSE:AZN - News) of plans to continue development of AZD3480 in Alzheimer's disease and cognitive deficits in schizophrenia. This determination triggers a $20 million milestone payment to Targacept.
Vascular Solutions (NASDAQ:VASC - News) said the Food and Drug Administration has approved its premarket approval supplement for the D-Stat Flowable hemostat to reduce the incidence of clinically significant hematomas during the implantation of pacemakers or other devices.
By Michael Baron of MarketWatch

Labels: AZN, CDMS, CRXL, CVO, HCC, IFON, IMA, MNST, PFSW, PG, SRE, TRGT, VASC

Cenveo Inc. (NYSE:CVO - News) said it's reached a definitive agreement to acquire all outstanding stock of Cadmus Communications Corp. (NASDAQ:CDMS - News) for $24.75 a share in cash. The deal represents an acquisition premium of 18% over Tuesday's closing price of $20.98 on Cadmus shares. The total value of the transaction, including assumption of debt, is expected to be about $430 million, Cadmus said. A combined Cenveo and Cadmus would rank as the No. 3 graphics-communications company in North America with revenue of more than $2 billion, according to Stamford, Conn.-based Cenveo.
Crucell N.V. (NASDAQ:CRXL - News) signed a cross-licensing agreement with Merck & Co, Inc. . Under the deal, Merck will be allowed to use Crucell technology on an exclusive basis in undisclosed vaccine fields. In return Crucell will receive access to Merck's large-scale manufacturing technology for its AdVac-based malaria and TB vaccines.
HCC Insurance Holdings' (NYSE:HCC - News) shares rose after the company said it's completed an independent review of its stock option granting practice and recorded a gross non-cash compensation expense of $26.6 million related to corrections of errors in the years 1997 through and including 2005. The company stated the charge had no impact on its reported net revenue, cash or cash flow for the period but it did result in a net after-tax decrease in shareholders' equity of $3.3 million. Houston-based HCC said its conclusion of the review and subsequent completion of certain quarterly and annual financial filings with the Securities and Exchange Commission will have "cured any possible Event of Default" stemming from its failure to deliver the reports in a timely manner under the provisions of certain debt offerings. In addition, HCC posted earnings of $93.3 million, or 80 cents a share, for the third quarter, up from a year-ago profit of $7.4 million, or 7 cents a share. Last year's third quarter reflects the impact of hurricane-related losses and the effect of reinsurance commutations.
InfoSonics' (NASDAQ:IFON - News) shares gained after the San Diego based-company said it has reached an agreement to distribute handsets for LG Electronics in the Caribbean and certain countries in Latin America. Financial terms of the deal weren't disclosed. InfoSonics said it has already received approval, certification and purchase orders from carriers in the region and will be delivering its first shipments in the coming weeks.
Inverness Medical Innovations (AMEX:IMA - News) shares rose after the company formed a joinr venture with Procter & Gamble (NYSE:PG - News) to develop, manufacture and market consumer diagnostic products outside of the fields of cardiology and diabetes. P&G will pay $325 million in cash for its 50% interest in the joint venture, the companies said. The deal is expected to close in the latter half of the first quarter of 2007, subject to regulatory approval and normal closing conditions.
Monster Worldwide Inc. (NASDAQ:MNST - News) said its board has elected Philip Lochner Jr. as a director, effective immediately. Among other prior positions, Lochner has served as a commissioner with the Securities and Exchange Commission. Lochner will join the special committee investigating the company's historical stock-option practices, and serve on the committee addressing related civil litigation.
PFSweb (NASDAQ:PFSW - News) shares leapt after the Plano, Texas-based company said it has signed an agreement with Fathead LLC to provide order processing and fulfillment services. Financial terms of the deal were not disclosed. The agreement with Fathead was included in PFSweb's previously announced service fee contracts for the year, which will bring in estimated annual revenue of $12 million upon full implementation.
Sempra Energy (NYSE:SRE - News) said it expects 2006 earnings from continuing operations, excluding asset sales, to exceed $4 a share. The San Diego energy services holding company had previously forecast earnings between $3.50 and $3.70 a share. The company also said it will sell its interests in two Argentine natural-gas distribution companies.
Targacept (NASDAQ:TRGT - News) shares jumped after the company said it's received confirmation from AstraZeneca (NYSE:AZN - News) of plans to continue development of AZD3480 in Alzheimer's disease and cognitive deficits in schizophrenia. This determination triggers a $20 million milestone payment to Targacept.
Vascular Solutions (NASDAQ:VASC - News) said the Food and Drug Administration has approved its premarket approval supplement for the D-Stat Flowable hemostat to reduce the incidence of clinically significant hematomas during the implantation of pacemakers or other devices.
By Michael Baron of MarketWatch

Labels: AZN, CDMS, CRXL, CVO, HCC, IFON, IMA, MNST, PFSW, PG, SRE, TRGT, VASC

Applied Signal Technology Inc. (NASDAQ:APSG - News) shares fell 15% Tuesday after the company late Monday reported fourth-quarter net income fell to 5 cents a share from 26 cents in the year-earlier period.
Shares in drug giant AstraZeneca (NYSE:AZN - News) slid 3.5% on news that a key patent protecting its top-selling antacid drug Nexium had been shot down by European regulators.
Shares in Circuit City Stores Inc. (NYSE:CC - News) fell 17% after the company reported a surprise third-quarter loss, hurt by price cuts on flat-panel televisions and other consumer electronics that eroded margins.
Delta Air Lines (Other OTC:DALRQ.PK - News) shares dropped 6.1% after the company filed a reorganization plan that valued its business at $9.4 billion to $12 billion, richer than the $8.4 billion merger offer from U.S. Airways Group (NYSE:LCC - News), which it formally rejected.
Fuelcell Energy Inc. (NASDAQ:FCEL - News) shares fell 5% after the company said its fourth-quarter net loss available to shareholders widened to $25.1 million, or 47 cents a share, compared with a net loss of $19.5 million, or 40 cents a share, in the same period last year, mainly due to higher product sales and costs. The Danbury, Conn.-based manufacturer of electric power generation plants said revenue rose 14.7% to $9.13 million from $7.96 million. Analysts polled by Thomson First Call had expected a per-share loss of 35 cents, on revenue of $9 million.
Luby's Inc. (NYSE:LUB - News) shares dropped 4.6% after the Houston-based restaurant operator reported fiscal first-quarter net income of $1.92 million, or 7 cents a share, down from $2.22 million, or 12 cents a share, in the year-ago period. Revenue in the quarter ended Nov. 22 rose slightly, to $73.7 million from $72.6 million, while same-store sales increased 1.7%. Analysts polled by Thomson First Call had forecast a per-share profit of 8 cents.
Nasdaq Stock Market Inc. (NASDAQ:NDAQ - News) shares fell 5.5% after the London Stock Exchange on Tuesday again rebuffed its takeover bid.
Ness Technologies Inc. (NASDAQ:NSTC - News) shares fell 5.6% after the Hackensack, N.J.-based IT services provider said it has agreed to acquire Selesta Espana S.A.U. for 6.25 million euros ($8.2 million). Selesta Espana is a privately held IT software distribution and systems integration company based in Spain. Ness said the deal includes an additional 3.75 million euros to be paid over the next two years based on the achievement of certain performance goals.
Oracle (NASDAQ:ORCL - News) shares sank 4.5% after the company reported fiscal second-quarter sales of new software licenses were less than expected, stoking concerns over the pace of future revenue growth.
Physicians Formula Holdings Inc. (NASDAQ:FACE - News) shares fell 5.2% after the company reported third-quarter net income fell to $223,000 from $589,000 in the year-earlier period.
PSS World Medical Inc. (NASDAQ:PSSI - News) shares dropped 5.8% after the company said it has authorized the repurchase of up to 5% of its outstanding common stock, or roughly 3.4 million shares. As of Sept. 29, the company had around 67.7 million outstanding shares. Jacksonville, Fla.-based PSS World Medical is a distributor of medical products to physicians and elder care providers. The company's shares fell 3.9% to $19.82 in Tuesday morning trade.
Tuesday Morning Corp. (NASDAQ:TUES - News) shares fell 11% after the Dallas-based home accessories retailer revised its 2006 forecast. The company now expects earnings of 78 cents to 84 cents a share on revenue of $905 to $915 million. Same-store sales are expected to fall 7.7% to 8.7% in 2006.
-Marketwatch

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