Jim Cramer Blog

Biopure Corp. (NASDAQ:BPUR - News) said that the U.S. Navy is in discussions with the Food and Drug Administration over potential protocol revisions to its previously proposed Resus Phase IIb/III pre-hospital trauma trial of Hemopure. The talks could enable Resus to proceed as a smaller, Phase II trial, subject to FDA approval, the company said. Last week, the FDA Blood Products Advisory Committee voted 11 to 8, with one abstention, against proceeding with the trial. The Naval Medical Research Center is sponsoring Resus.
Chaparral Steel Co. (NASDAQ:CHAP - News) reported second-quarter earnings of $1.40 a share, nearly double the 72 cents of the year-earlier period.
Cintas Corp. (NASDAQ:CTAS - News) second-quarter net income rose to 51 cents a share from 46 cents in the year-earlier period. Analysts had expected 52 cents.
CPI Corp. (NYSE:CPY - News) narrowed its third-quarter net loss to 15 cents a share from 39 cents in the year-earlier period. Shares outstanding fell to 6.4 million from 7.9 million.
Dell Inc. (NASDAQ:DELL - News), the world's No. 2 computer maker, named Donald Carty vice chairman and chief financial officer. The change of CFO comes amid an investigation of its financial reporting.
FedEx Corp. (NYSE:FDX - News) said Wednesday its second-quarter net income rose 8% to $511 million, to $1.64 a share, from $471 million, or $1.53 a share in the year-earlier period. Excluding costs for a new pilot labor contract at FedEx Express, the company said it would have earned $1.89 a share. Total revenue at the Memphis, Tenn.-based package delivery giant rose 10% in the three months ended Nov. 30 to $8.93 billion from $8.09 billion. Analysts polled by Thomson First Call forecast earnings, on average, of $1.76 a share and $8.91 billion in revenue. FedEx tightened its 2007 earnings outlook to $6.35 to $6.65 a share, or $6.60 to $6.90 a share, excluding labor contract costs. Third-quarter earnings would be $1.20 to $1.35 a share and fourth-quarter earnings are forecast at $1.98 to $2.13 a share.
Forrester Research Inc. (NASDAQ:FORR - News) said Warren Hadley, chief financial officer and treasurer, resigned. The resignation is due to irregularities uncovered by an internal investigation related to an option grant made to Hadley in 1999.
FoxHollow Technologies (NASDAQ:FOXH - News) cut its fourth-quarter revenue-estimate range to $44 million to $46 million from $54 million to $56 million. The Merck & Co. (NYSE:MRK - News) partner said it's reviewing strategy due to slower sales of SilverHawk, a minimally invasive system that removes obstructive plaque and restores blood flow to the legs and feet.
FSI International Inc., (NASDAQ:FSII - News) the maker of equipment used in microelectronics, swung to first-quarter net income of 6 cents a share from a net loss of 14 cents in the year-earlier period.
Greenbrier Companies (NYSE:GBX - News) said it expects its earnings for the first quarter of its fiscal year to fall below expectations, principally due to weaker-than-anticipated results in its North American new railcar manufacturing units. The supplier of equipment and services to the railroad industry said that it expects to report first-quarter to Nov. 30 operating earnings in a range of 10 cents to 13 cents a share. The results for the quarter also include a write-off of loan fees of 4 cents a share and non-cash foreign exchange losses of 3 cents a share. Analysts were expecting the company to post earnings of 54 cents a share for the quarter. The company also said that, in light of the expected first-quarter result, it also doesn't expect to meet its $3.10 to $3.40 fiscal-year earnings per share forecast.
Kohl's Corp. (NYSE:KSS - News) shares were downgraded to neutral by Robert Baird, which cited difficult comparisons and warmer weather hampering fourth-quarter results.
Northfield Laboratories Inc. (NASDAQ:NFLD - News) shares tumbled more after the company reported 46 deaths in a study assessing PolyHeme, compared with 35 deaths in the control group. PolyHeme is a human hemoglobin-based oxygen-carrying red-blood-cell substitute.
Palm (NASDAQ:PALM - News) second-fiscal-quarter earnings fell from the year-earlier result, which was inflated by a tax-accounting measure. Shipments of the company's smart-phone devices continued to grow.
Panacos Pharmaceuticals Inc. (NASDAQ:PANC - News) shares fell 30% after the biotechnology company said preliminary results from the first cohort of a Phase 2b study of bevirimat suggest that the tablet formulation did not deliver the drug as expected.
Park Electrochemical Corp. (NYSE:PKE - News) said that third-quarter net income was $9.5 million, or 47 cents a share, from $9.7 million, or 48 cents a share, a year ago. Analysts had been expecting the materials company to report earnings of 47 cents a share. Sales rose 20% to $68.2 million. The company said that last year's results were flattered by a $1.5 million tax benefit.
ResCare Inc. (NASDAQ:RSCR - News) said it sees per-share earnings of $1.24 to $1.28 in 2007, on revenue of $1.43 billion. Excluding items, ResCare sees per-share earnings of $1.35 to $1.39.
Sally Beauty (NYSE:SBH - News) was cut to underweight from neutral-weight by Prudential Equity Group, which said changes to the company's relationship with cosmetics giant l'Oreal should lower sales by $110 million in the last nine months of fiscal 2007.
Taubman Centers (NYSE:TCO - News) said it expects 2007 funds from operations, a key profitability measure for real estate investment trusts, in the range of $2.73 to $2.78 a share. Analysts surveyed by Thomson First Call are forecasting, on average, FFO of $2.69 a share for 2007. The Bloomfield Hills, Mich., regional shopping-center REIT said it expects 2006 FFO at the upper end of its previous estimate of $2.46 to $2.51 a share.
Tecumseh Products Co. (NASDAQ:TECUA - News) said its third-quarter net loss for the three months ended Sept. 30 widened to $37.8 million, or $2.05 a share, from $37.2 million, or $2.01 a share in the year-ago period. Revenue fell to $429.4 million from $449.9 million. The company cited unfavorable foreign currency fluctuations, higher costs for copper and other commodities, and a writedown of impaired assets. The company expects to take a loss in the fourth quarter because of the same factors cited above.

Labels: BPUR, CHAP, CPY, CTAS, DELL, FDX, FORR, FOXH, FSII, GBX, KSS, MRK, NFLD, PALM, PANC, PKE, RSCR, SBH, TCO, TECUA

American Italian Pasta Co. (NYSE:PLB - News) said the New York Stock Exchange is planning to move forward with the suspension and delisting of the company's common stock following its failure to meet certain filing requirements by an extended deadline. The company expects trading in its stock to be suspended on Dec. 20. It plans to appeal the move. The shares will be eligible for trading on the Pink Sheets following the suspension. American Italian Pasta also said it expects to file its annual report for the fiscal year ended Sept. 30, 2005 by the end of January. The company also said it believes price increases for its products will not fully offset the negative impact of higher durum costs in fiscal 2007.
Affymetrix Inc. (NASDAQ:AFFX - News) shares sagged after its chief financial officer, Greg Schiffman, left to take the same position at cancer-focused biotechnology company Dendreon Corp.
Apple Computer Inc. (NASDAQ:AAPL - News) shares dipped after the company said Friday it will delay its annual report for the fiscal year ended in September. The company has also delayed filing its last two quarterly financial reports amid an internal probe into the backdating of employee stock option grants.
Asta Funding (NASDAQ:ASFI - News) was downgraded to market perform from outperform at Ryan, Beck & Co. The firm lowered its price target on the stock to $34 from $50, citing a lack of valuation catalysts.
Avery Dennison (NYSE:AVY - News) was downgraded to neutral from overweight at J.P. Morgan.
Biopure Corp. (NASDAQ:BPUR - News) shares tumbled after the FDA's blood products advisory committee recommend against proceeding with the Navy's proposed Phase III study of Hemopure, the company's pre-hospital treatment for hemorrhaging shock resulting from traumatic injury.
Black & Decker Corp. (NYSE:BDK - News) shares plunged after the tool maker said a slowdown in the housing market and weakening demand for discretionary goods will pose stiff headwinds in the coming year.
California Micro Devices Corp. (NASDAQ:CAMD - News) backed its third-quarter results outlook of a range of a loss of 2 cents a share to earnings of 1 cent a share. The company also confirmed its revenue outlook of $16.5 and $18.5 million.
Conolog (NASDAQ:CNLG - News) shares lost ground after the Somerville, N.J., provider of digital signal processing products posted a loss from continuing operations of $710,613, or 41 cents a share, for its fiscal first quarter ended Oct. 31. This performance was a wider loss than last year as product revenue fell 32% in the latest quarter to $127,661 from $187,938 a year ago.
Dendrite International Inc. (NASDAQ:DRTE - News) said it sees fourth-quarter revenue of $107 to $112 million, with a per-share loss of 23 cents to 35 cents. The company expects 2007 revenue of $430 million to $445 million, and per-share income of 43 to 51 cents.
Encana (NYSE:ECA - News) was downgraded to sell from hold at Citigroup Investment Research. The firm cited cost run-ups and concerns about the quality of the company's portfolio.
Enzo Biochem Inc. (NYSE:ENZ - News) said it plans to sell 3.3 million common shares at $14 each in a registered direct offering to institutional investors. Enzo, a New York health-care research compay said it expects to raise $43.1 million from the offering. The company said it plans to use the money for general corporate purposes, including potential acquisitions, clinical research and development, and the development of product candidates.
Genta Inc. (NASDAQ:GNTA - News) shares plunged after the Food and Drug Administration rejected its application seeking approval for its experimental blood cancer treatment, Genasense.
Illinois Tool Works (NYSE:ITW - News) lowered its outlook for the fourth quarter to a profit of between 72 and 74 cents a share from its prior projection of 77 to 81 cents a share. The company cited lower than expected base revenue growth and anticipated continuing weakness in North America end markets in December. The current average estimate of analysts polled by Thomson First Call is for a profit of 78 cents a share in the December period. For the year, the company now sees earnings of $2.96 to $2.98 a share, below its previous view of $3.01 to $3.05 a share. It expects base revenue growth of 1.8% to 2.4% for the fourth quarter and 3.7% to 3.8% for the year.
International Rectifier (NYSE:IRF - News) was downgraded to neutral from buy at UBS.
Navistar International Corp. (NYSE:NAV - News) said worldwide shipments of its school buses, Class 6-7 medium trucks and Class 8 heavy trucks rose 14% to 147,400 units in 2006 from 129,600 units shipped in 2005. The company also said it shipped 11,000 Class 4-5 small bus and stripped chassis units for the motor home and step-van markets in 2006, and that its diesel engine shipments totaled 519,700 engines for the year, down slightly from 522,600 engines shipped in 2005. The company also added that it's made significant progress on completing the previously disclosed restatement of certain historical financial statements and that it doesn't plan to comment on 2006 results until the statements are finished. It anticipates it won't complete the restatement until after Feb. 1. Navistar added that it's been informed that the New York Stock Exchange plans to suspend trading in its stock by Dec. 20 and begin delisting procedures. The company plans to contest these actions by the exchange.
Optical Communication Products (NASDAQ:OCPI - News) shares slumped after the Woodland Hills, Calif.-based maker of fiber optic components late Thursday reported a fiscal fourth-quarter net loss of $1.4 million, or a penny a share. In the same quarter last year, the company posted a net profit of $1.57 million, or a penny a share. Revenue rose to $19.1 million from $14.8 million. Optical Communication expects revenue of $80 million to $90 million for fiscal 2007, and a "significant" gross margin decline in the first half of fiscal 2007 when compared with the fourth quarter, with the potential for "modest quarter-to-quarter improvements later in the year." The company announced separately that Chief Technology Officer Muoi Van Tran and Chief Financial Officer Susie Nemeti, company founders, will resign. Tran will continue to serve as chairman.
Penn National Gaming (NASDAQ:PENN - News) has reportedly launched a bid for the far larger Harrah's Entertainment (NYSE:HET - News), competing with a private group that is already trying to buy the gambling giant.
PRA International (NASDAQ:PRAI - News) was downgraded to neutral from buy at Goldman Sachs. The move follows the company's announcement late Thursday that Patrick Donnelly has resigned as president and CEO, effective immediately. The company named Terrance Booker to serve as interim CEO, and said Melvin Booth would succeed Jean-Pierre Conte in the chairman role. PRA also said it now expects earnings of $1.08 to $1.11 a share for 2006, including a charge of 5 cents a share related to Donnelly's resignation and a charge of 2 cents a share stemming from a debt write-off. It also narrowed its service revenue outlook for the year to between $300 million and $305 million.
ProQuest Co. (NYSE:PQE - News) agreed to sell its ProQuest Informantion and Learning unit to Cambridge Information Group for about $222 million.
Sturm, Ruger & Co. (NYSE:RGR - News) was downgraded to accumulate from strong buy at C.L. King.
Tektronix Inc. (NYSE:TEK - News) said second-quarter net earnings fell, as selling, general and administrative expenses rose, to $19.6 million, or 24 cents a share, from $19.9 million, or 24 cents a share, during the same period in the prior year. For the third quarter, Tektronix sees sales of $275 to $285 million, and earnings per share from continuing operations of 34 cents to 39 cents, before items such as acquisition and business realignment costs.
United American Healthcare Corp. (NASDAQ:UAHC - News) shares fell after the Detroit-based provider of healthcare services for Medicaid recipients said late Thursday it has raised $6.5 million through the sale of 1 million newly issued shares to institutional investors for $6.50 each. The deal also included warrants to buy 100,000 shares at an exercise price of $8.50 each, expiring in December 2011. United American said the proceeds will be primarily be used for start-up costs associated with the its Tennessee subsidiary's new Medicare Advantage contract with the Centers for Medicare & Medicaid Services.
VistaCare Inc. (NASDAQ:VSTA - News) said its fourth-quarter net loss widened to $10.9 million, or 66 cents a share, from $5.1 million, or 31 cents a share, in the same period last year. Excluding a non-cash valuation allowance of $8.3 million, per-share earnings were 16 cents.
Zoltek Cos. (NASDAQ:ZOLT - News) shares dropped after the St. Louis-based maker of carbon fibers late Thursday reported a fiscal fourth-quarter net loss of $22.9 million, or 89 cents a share, compared with $11.1 million, or 61 cents a share, in the year-ago period. The latest quarter included $23.1 million of litigation charges. Revenue rose to $23.8 million from $14.9 million. Analysts polled by Thomson First Call had forecast revenue of $31.3 million. The company expects fiscal first-quarter revenue of more than $30 million. Analysts are looking for revenue of $37.1 million. Zoltek also said it will delay the filing of its fiscal 2006 10-K in order to complete documentation and other arrangements related to the funding of an appeal bond for its litigation.
-MarketWatch

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3M Co. (NYSE:MMM - News) was downgraded to neutral from overweight at Prudential Equity Group, which said it will take some time for the stock to regain its valuation premium. Fears over the company's optical film business have been extinguished by strong third-quarter figures, but convincing investors to pay a premium for the company as economies in Europe and North America slow could take more time than originally anticipated, Prudential said.
Agnico-Eagle Mines Ltd. (NYSE:AEM - News) was downgraded to neutral from buy at Merrill Lynch, which cited valuation. The broker said Agnico-Eagle is trading close to the upper end of the valuation range within which North American gold producers have historically traded. "Despite this downgrade, we still believe that the company has excellent long-term growth prospects," Merrill Lynch said. "Agnico-Eagle is in the midst of developing four gold projects that should convert the company into a multi-mine operator allowing the company to more than triple gold output."
American Ecology (NASDAQ:ECOL - News) said it sees 2007 earnings of 92 to $1.02 per share. The waste-services company also backed its view for 2006 earnings of 85 to 90 cents per share.
Biopure Corp. (NASDAQ:BPUR - News) agreed to sell 25 million new shares of common stock and warrants to acquire an additional 25 million new shares to underwriters. The price for one share and one warrant is 64 cents, the company said. The exercise price of each warrant is 80 cents. The transaction is expected to close on Dec. 13, resulting in net proceeds to Biopure of $14.4 million, assuming no warrant is exercised.
Central Garden (NASDAQ:CENT - News) said fourth-quarter net earnings fell to $6.02 million, or 25 cents a share, from $6.72 million, or 31 cents a share, in the same period last year, as expenses and income taxes rose. Excluding $9 million in increased brand building and strategic work, the Walnut Creek, Calif.-based producer and marketer of garden and pet supplies posted per-share earnings of 49 cents.
Chesapeake Energy Corp. (NYSE:CHK - News) is launching a public offering of 30 million shares of its common stock. The Oklahoma City-based natural gas producer said it has granted the underwriter, Deutsche Bank Securities, a 30-day option to buy up to 4.5 million additional shares to cover any over-allotments.
Consolidated Water Co. (NASDAQ:CWCO - News), which builds and operates seawater desalination plants, said it has priced a public offering of 1.5 million shares at $24.90 a share. The company said it expects the offering to generate net proceeds of $34.9 million. It added it expects to use the proceeds to repay existing debt as well as possible future acquisitions and investments.
Countrywide Financial (NYSE:CFC - News) shares slumped after Stifel Nicolaus downgraded shares of the mortgage giant to hold from buy. "Recent developments in the mortgage industry have significantly increased the risks in the sector," Stifel Nicolaus said in a note to clients. Analysts cited severe credit deterioration, decreased secondary market appetite and tightening underwriting standards. "We expect trends to worsen given our belief that housing has yet to bottom or even fully impact credit trends," analyst Chris Brendler said.
Shares of Duckwall-ALCO Stores Inc. (NASDAQ:DUCK - News) dropped after the Abilene, Kansas-based general merchandise retailer posted a wider loss for the third quarter. For the three months ended Oct. 29, the company lost $648,000, or 18 cents a share, compared to an equivalent year-ago loss of $187,000, or 5 cents a share. Sales from continuing operations rose 9.3% in the latest quarter to $110.1 million from $100.7 million in the same period a year earlier. Duckwall-ALCO said its gross margin declined in the quarter to 31.2% due to higher freight costs, lower margins on higher sales at its fuel centers, and higher than expected degree of seasonal markdowns for its horticulture and patio merchandise products.
Genta (NASDAQ:GNTA - News) shares dropped after the Berkeley Heights, N.J.-based biopharmaceutical company said a Phase III trial of chemotherapy with or without Genasense, conducted in older, previously untreated patients with acute myelogenous leukemia, failed to meet its primary endpoint of overall survival.
GTx Inc. (NASDAQ:GTXI - News) said a Phase II trial of its ostarine selective androgen receptor modulator met its primary endpoint of increasing lean body mass and a secondary endpoint of improving functional performance. Ostarine continued to demonstrate a favorable safety profile, with no serious adverse events reported, it added. GTx plans to initiate a Phase IIb ostarine clinical trial for cancer cachexia in the summer of 2007. GTx also intends to evaluate the ability of ostarine to treat chronic disease indications including end stage renal disease muscle wasting, frailty and osteoporosis. GTx has reacquired full rights to develop and commercialize andarine and all backup compounds previously licensed to Johnson & Johnson unit Ortho Biotech Products on a mutual agreement to terminate the deal
New Century Financial Corp. (NYSE:NEW - News) said its total mortgage loan production was $4.5 billion, a drop of 11.8% from the equivalent year-ago period. On a sequential basis, November's production slid 10% from October levels. "The decline in our loan production volume in November was in line with our expectations, particularly in light of overall mortgage market declines this quarter," said Brad Morrice, the company's president and CEO, in a statement.
PG&E Corp. (NYSE:PCG - News) was downgraded to neutral from overweight at J.P. Morgan, citing valuation.
Shares of Questcor Pharmaceuticals (AMEX:QSC - News) shares fell after the company said it's received definitive commitments from unaffiliated institutional investors to purchase 10.51 million shares of its common for $1.20 each. In addition, the Union City, Calif.-based Questcor said certain insiders have committed to purchasing 890,000 shares at $1.45 each.
Smith & Wesson Holding Corp. (NASDAQ:SWHC - News) reported second-quarter net earnings of $2.85 million, or 7 cents a share, compared with $692,377, or 2 cents a share, in the same period last year, on the back of strong firearms sales.
Shares of Sprint Nextel (NYSE:S - News) fell as Morgan Stanley analyst Simon Flannery said the company was at a "crossroads," with results falling below expectations set at the time of the Sprint-Nextel merger. "We see significant downside for the stock if management is not successful in stabilizing the business in the near term," Flannery said in a note to clients. He reiterated his underweight rating on the stock, and revised his price target from $18 at the end of 2006 to $19 at the end of 2007. "Recent comments by management appear to suggest that rising handset subsidies, tightened credit standards and increasing pre-paid competition will pressure fourth-quarter and early-2007 results, despite new handset launches and a re-branding campaign," Flannery added.
Unifi Inc. (NYSE:UFI - News) said it now expects its second-quarter earnings before income, taxes, depreciation and amortization to be less than half of its previous forecast of $10 million to $12 million. The company said a September drop in volume has continued.
Witness Systems Inc. (NASDAQ:WITS - News) said a special committee review found mistakes in the measurement dates of stock-option grants, although it did not find evidence of fraud or intentional misrepresentation.
Xilinx (NASDAQ:XLNX - News) said it now sees third-quarter sequential sales falling 2% to 5% due to weaker than anticipated turns business in November, particularly from communications customers. The company had expected a sequential increase of 2% to 5%.
Yum Brands (NYSE:YUM - News) was downgraded to market perform from outperform at Wachovia. The firm cited slowing sales momentum in the U.S. and a potentially significant sales impact related to the recent E. coli outbreak at some of the group's Taco Bell restaurants. Wachovia added Yum's KFC chain is facing tough sales comparisons over the next couple of quarters, though it added it still holds a favorable view on the group's international and Chinese operations.
By Michael Baron

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