Jim Cramer Blog

Stocks went on a roller-coaster ride today following large losses yesterday. Towards the close, the selling intensified, with the Dow ending down -208 points, the Nasdaq losing -37, and the S&P 500 finishing the session -24 points lower. Upbeat GDP data could not revive stock prices as investors did not want to hold stocks heading into the weekend. Oil, meanwhile, rose $2.07 to close at $77.02.
In economic news, the Commerce Department said Gross Domestic Product (GDP) rose a better-than-expected 3.4% in the second quarter. Wall Street economists were expecting a gain of 3.2%. The personal expenditure index, a key gauge of inflation, rose 4.3% in the second quarter. Adding to the economic data was the Reuters/University of Michigan Consumer Confidence Index, which rose to 90.4 from 85.3 in June.
Corporate earnings continued to filter in on the last day of trading for the week. Oil giant Chevron (NYSE: CVX - News) reported that its second-quarter profit climbed 24% to $5.38 billion, or $2.52 cents a share, up from $4.35 billion, or $1.97 cents a share, last year. Revenues hit $56.09 billion, up from $53.54 billion in the same quarter a year ago. Excluding a gain from the sale of Dynegy (NYSE: DYN - News) stock and a loss related to debt redemption, EPS would have been $2.37, which on that basis would have beat consensus estimates by 7 cents.
Elsewhere, Fortune Brands (NYSE: FO - News) said net income came in at $232 million, or $1.48 a share, down -6% from the $247.8 million, or $1.63 a share, it recorded last year. The decline was attributable to a tax-related gain last year. Excluding a restructuring charge, EPS was $1.53, which handedly beat analyst estimates of $1.44. Net sales rose 4% to $2.35 billion on strength of Spirits and its golf business. Shares rose 1.5% on the session.
In M&A, medical technology company Medtronic (NYSE: MDT - News) agreed to acquire Kyphon (Nasdaq: KYPH - News) for $3.9 billion, or $71 a share. The deal represents a premium of 36% over where Kyphon's stock closed yesterday. The deal will help Medtronic expand its growing spinal treatment business.
In other news, shares of clothing retailer Gap (NYSE: GPS - News) rose 5.2% after the company announced that it has hired Glen Murphy as CEO. Murphy is a veteran of the food and drug industry. He will replace Robert Fisher.
By the BullMarket.com Staff

Labels: CVX, DYN, FO, GPS, KYPH, MDT

Medtronic Inc. said Friday it will acquire Kyphon Inc. for $71 a share in cash, or about $3.9 billion.
Minneapolis-based Medtronic's (NYSE:MDT - News) purchase price represents a 32 percent premium over Sunnyvale-based Kyphon's (NASDAQ:KYPH - News) closing stock price on July 26 of $53.68, and a 35 percent premium over Kyphon's 30-day average trading price of $52.76 per share.
The transaction has been unanimously approved by the boards of directors of both companies.
"We expect our combination with Kyphon to help accelerate the growth of Medtronic's existing spinal business by extending our product offerings into some of the fastest growing product segments and enabling us to provide physicians with a broader range of therapies for use at all stages of the care continuum," said Art Collins, chairman and CEO of Medtronic.
The two companies said their product lines and geographic presence are complementary. While both companies have expertise in minimally invasive, highly effective treatments, Medtronic's spinal surgery focus has been on providing treatment options for younger patients who are suffering from scoliosis and degenerative disc disease in the cervical and lumbar spine. Kyphon's focus has been on treating older patients suffering from vertebral compression fractures and spinal stenosis.
Staffing and other details were not disclosed.
Kyphon on Friday reported second quarter net income of $11 million or 23 cents a share, up from $9.5 million or 21 cents a share in the same period last year.
Kyphon said worldwide revenue was $144.3 million, an increase of 43 percent over the $101.1 million reported for the second quarter of 2006. Total U.S. revenue for the quarter increased 36 percent to $110.7 million over the same period in 2006, while total international revenues increased 73 percent to $33.6 million. Kyphon's core spinal fracture management and repair product revenue grew 19 percent to $120.6 million.
Excluding items, the company would have earned 26 cents a share, compared to non-GAAP earnings of 21 cents a share a year ago.
Published July 27, 2007 by the Silicon Valley / San Jose Business Journal

Labels: KYPH, Kyphon Inc., MDT, Medtronic Inc.

3Com Corp. (NASDAQ:COMS - News) said the second-quarter net loss narrowed to a penny a share from 3 cents in the year-earlier period.
ASV Inc. (NASDAQ:ASVI - News) estimated 2006 earnings at 80 cents to 84 cents a share on sales of $240 million to $250 million. A survey of analysts by Thomson First Call produced consensus estimates of 82 cents of profit on $245 million of revenue. The company also said that for 2007, earnings would range 68 cents to 87 cents a share, on revenue of $230 million to $260 million. Thomson First Call's estimates: 90 cents and $249 million.
Bed Bath & Beyond (NASDAQ:BBBY - News) posted a third-quarter profit rise of about 6%, bolstered by both same-store-sales growth and new-store openings.
Commercial Metals Co. (NYSE:CMC - News) said its first-quarter net income rose 23% to $85.4 million, or 71 cents a share, from $69.6 million, or 57 cents a share in the year-earlier period. Sales at the Irving, Texas, metal company climbed 21% in the three months ended Nov. 30 to $1.99 billion from $1.65 billion. International steel prices appear to be at or near the bottom and are likely to increase early in calendar 2007, according to the company's outlook.
First Data Corp. (NYSE:FDC - News) said it expects fourth quarter earnings to be 33 cents to 35 cents a share, excluding 5 cents of special items, or 28 cents to 30 cents a share from continuing operations on a GAAP basis. For the full year 2006, the company expects to earn $1.08 to $1.10 a share excluding items 2 cents, or $1.06 to $1.08 per share from continuing operations on a GAAP basis. According to analysts polled by Thomson First Call, the average estimate for the company's fourth quarter adjusted earnings is 34 cents a share.
Heico Corp. (NYSE:HEI - News) fourth-quarter net income rose to 35 cents a share from 25 cents in the year-earlier period. Analysts had expected 31 cents
Jabil Circuit Inc. (NYSE:JBL - News) posted fiscal first-quarter revenue of $3.2 billion, up 33% from the year-earlier period. The provider of electronic manufacturing services said it expects second-quarter revenue of $2.75 billion to $2.85 billion, and fiscal 2007 revenue growth of about 20%.
Joy Global Inc. (NASDAQ:JOYG - News) named Michael Sutherlin president and chief executive. Sutherlin has served as president of Joy Mining Machinery since 2003.
Kyphon Inc. (NASDAQ:KYPH - News) said it would acquire the spine-related product assets and associated intellectual property rights of Disc-O-Tech Medical Technologies Ltd. of Israel for as much as $240 million. In a statement, Kyphon said it expects to report a pre-tax charge of $30 million to $40 million for in-process research and development in 2007. Excluding the charge, Kyphon expects the deal to cut 12 cents to 17 cents a share from adjusted 2007 earnings. The transaction should "slightly" dilute 2008 reported earnings and add to earnings beginning in 2009. Richard Mott, president and chief executive of Kyphon, said in the statement that Disc-O-Tech's systems will boost Kyphon's ability to serve a fast-growing industry segment, minimally invasive treatment of degenerative disc disease.
Manatron Inc. (NASDAQ:MANA - News) said it's rejecting at bid of $9 a share from Constellation Software. The Kalamazoo, Mich. Web application software firm said its board unanimously concluded that "pursuing the proposal would not be in the best interests of the company, its shareholders or other stakeholders."
Pier 1 Imports, (NYSE:PIR - News) said E. Mitchell Weatherly, executive vice president for stores, is retiring as of Dec. 30. In a Securities and Exchange Commission Form 8-K, Pier 1 said that while the company searches for a successor, David A. Walker, EVP for logistics and allocations, will add the responsibilities of head of store operations.
PMC-Sierra Inc. (NASDAQ:PMCS - News) cut its quarterly sales target due to slower demand for its chips used in high-speed Internet-networking gear and data-storage equipment. PMC-Sierra forecast fourth-quarter revenue in the range of $100 million to $105 million, down from its prior outlook of $105 million to $112 million.
Shiloh Industries Inc. (NASDAQ:SHLO - News) said it lost $6 million, or 38 cents a share in its fourth quarter. During the fourth quarter, the firm recorded special items that reduced net income by $7.1 million, or 44 cents a share. Net income, excluding special items was $1.1 million, or 6 cents a share for the fourth quarter, compared to net income of $8.1 million, or 49 cents a share a year ago. Sales for the fourth quarter ended October 31, 2006 were $157.9 million compared to $176.9 million reported in the fourth quarter of fiscal 2005, a decrease of $19 million or 10.7%. The company also said its board declared a special dividend of $2.50 a share.
Sonic Foundry Inc. (NASDAQ:SOFO - News) said it's priced an offering of 3 million shares at $3.75 each. It will use the proceeds for research and development and capital expenditures.
Stepan Co. (NYSE:SCL - News) said it expects a fourth-quarter loss of $5 million to $6 million, compared with a loss of $400,000 million a year earlier. The Northfield, Ill., chemicals company said it expects the loss for 2006 at $6 million to $7 million. Stepan said surfactant earnings will be lower due to employee severance costs in Europe and an unfavorable comparison with a year ago. The company also said polymer earnings will be lower due to declining profit margins for phthalic anhydride and polyurethane polyol.
Ultratech Inc. (NASDAQ:UTEK - News) revised its fourth-quarter outlook to a loss of 25 cents to 30 cents a share from its prior view of a loss of 10 cents to 15 cents a share.
Wet Seal Inc. (NASDAQ:WTSLA - News) said it now expects its December same-store sales to rise from 1% to 3%, compared with a previously estimated increase in the low- to mid-single digit range.
Worthington Industries Inc. (NYSE:WOR - News) said its second-quarter earnings for the three months ended Nov. 30 fell 31% to $26.9 million, or 31 cents a share, from $39 million, or 48 cents a share in the year-ago period. Revenue rose 4% to $729 million from $700 million. Analysts surveyed by Thomson First Call forecast earnings of 39 cents a share and revenue of $782.5 million, on average. The company said its steel processing and metal framing segments had lower volume as a result of weaker demand. Looking ahead, the company said its third quarter will be the weakest of the year.
-MarketWatch

Labels: ASVI, BBBY, COMS, FDC, HEI, JBL, JOYG, KYPH, MANA, PIR, PMCS, SCL, SHLO, SOFO, UTEK, WOR, WTSLA

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Wynn Resorts Ltd. (NASDAQ:WYNN - News) Jan 90.0. WYNN's PowerRating is 2.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Southern Copper Corp. (NYSE:PCU - News) Jan 50.0. PCU's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Advanced Magnetics Inc. (NASDAQ:AMAG - News) Dec 40.0. AMAG's PowerRating is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Chicago Mercantile Exchange (NYSE:CME - News) Dec 490.0. CME's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Kyphon Inc. (NASDAQ:KYPH - News). KYPH's PowerRating is 3.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
Gold Kist Inc. (NASDAQ:GKIS - News). GKIS' PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Arch CoalInc. (NYSE:ACI - News). ACI's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: ACI, AMAG, CME, GKIS, KYPH, PCU, WYNN