Jim Cramer Blog

The Dow closed up 51 points and the S&P 500 finished up 6 points. Crude oil is closing in on $100 as we near Thanksgiving. John Kilduff, an analyst at MF Global, joined the show to discuss his take on oil. He predicts the top on crude could be in area of $108 to $110. Adami favors Chevron (CVX), which he feels is cheaper then ExxonMobil (XOM). He advises looking at refiners like Tesoro (TSO) here. Finerman owns Tesoro and she is also looking at buying ConocoPhillips (COP).
Regional airlines are benefiting from the delays and congestion at larger airports. Airlines like Midwest (MEH) and Allegiant (ALGT) are benefiting from this trend. Adami says the way to play this trend is to buy the private jet makers like Textron (TXT), General Dynamics (GD), Embrear (ERJ) and Honeywell (HON).
For Defensive stocks Najarian likes Merck (MRK), Genentech (DNA) and Biogen (BIIB). However, Finerman would get defensive with names like Altria (MO) and Kraft (KFT). Adami also recommends Altria, Unilever (UL) and Procter & Gamble (PG).
Word on the Street
Target (TGT) reported a 4.4% fall in profits.
Whole Foods Market (WFMI) reported a decline in fourth-quarter profits, but sales top Wall Street estimates.
Google (GOOG) trades up 4% after Credit Suisse raised their price target to $900. Najarian believes names like Research In Motion (RIMM), Google and Apple (AAPL) are starting to show strength again. He would look to get back into these stocks around these levels. Adami prefers Microsoft (MSFT).
Najarian would keep an eye on ISIS Pharmaceuticals (ISIS) and Sangamo Biosciences (SGMO).
Pops & Drops
Pops - Barnes & Noble (BKS) traded up 13% after reporting higher internet sales.
Exxon (XOM) traded up 4% after UBS upgraded the stock.
Kraft (KFT) traded up 2%.
Utilities EFT (XLU) traded up 1%.
Drops - Office Depot (ODP) fell 7% after reporting a 9% decline in profits.
Echostar (DISH) fell 7%
Ericsson (ERIC) fell 12%
Hovnanian (HOV) fell 9%.
GameStop (GME) fell 4% after the video game maker missed analyst estimates.
Saks (SKS) fell 2% after missing estimates.
Final Trade
Macke likes the price action in Microsoft (MSFT).
Adami recommends Freeport McMorRan (FCX).
Finerman says to short the iShares Dow Jones US Real Estate ETF (IYR).
Najarian would purchase Pulte Homes (PHM) for a short term buy.

Labels: ALGT, BIIB, CNBC, CNBC's Fast Money, COP, CVX, erj, Fast Money, GD, GOOG, HON, MEH, MRK, PG, TGT, TSO, TXT, UL, WFMI, XOM

Stocks rose to modest gains earlier in the day on the heels of upbeat earnings and economic data, but drifted towards the close. At the end of the trading session, the Dow Jones and Nasdaq ended the day lower by -3 points, while the S&P 500 ended the day down fractionally.
On the economic front, the Commerce Department said today that retail sales increased by 0.3% in July after a -0.7% drop in June. Elsewhere, continuing on the theme set forth last week, the Federal Reserve pumped in an additional $2 billion in liquidity into the markets buy purchasing treasuries and other securities. The Fed noted that today's treasury buys were a one-day event.
In company news, investment bank Goldman Sachs (NYSE: GS - News) said today that it will invest $2 billion into its Global Equity Opportunities hedge fund after it lost -28% so far this month. In addition, a group of investors that includes billionaires Maurice "Hank" Greenberg, the former Chairman of American International Group (NYSE: AIG - News), and Eli Broad will invest an additional combined $1 billion into the fund. Shares were higher earlier in the day, but fell -1.7% at the close.
On the earnings front, private equity behemoth The Blackstone Group (NYSE: BX - News) reported net income of $774 million, up from $224 million last year. Profit excluding some compensation costs rose to 46 cents a share, significantly higher than the 11 cents a share it posted last year. Analysts were looking for earnings of 34 cents a share. Revenues climbed to $975 million from $325 million last year. On the retailing side, shares of Sears Holdings (Nasdaq: SHLD - News) rose 5.6% after the company said its board has authorized an additional $1.5 billion stock buyback. The retailing juggernaut also said second-quarter results may be weak as same-store sales at both its Kmart and Sears stores fell -3.8% and -4.3%, respectively. The retailer now sees earnings of $170-185 million, or $1.13-1.23 a share. Subscribers can read our analysis of Sears Holdings in today's issue.
In M&A news, Midwest Air Group (NYSE: MEH - News) agreed to be taken over by an investor group led by Texas Pacific Group (TPG) Capital in an all-cash deal that values the stock at $16 a share. The bid outshines an offer from AirTran Holdings (NYSE: AAI - News) of $15.75 in cash and stock. The new bid ends AirTran's two-year quest to buy the Milwaukee-based airline. Northwest Airlines (NYSE: NWA - News) is also part of the investor group, although it is a "passive investor" in the deal.
By the BullMarket.com Staff

Labels: AAI, AIG, BX, GS, MEH, NWA, SHLD

By the BullMarket.com Staff
Traders seem to have come to grips with the higher 10-year bond yields as the Dow, Nasdaq and S&P 500 were all up on the day. The core producer price index (PPI) rose slightly for May (0.2%) after remaining flat in April. The core PPI removes food and energy costs to calculate inflation, and the belief is that with inflation in check, the Fed will not be moved to raise rates.
Ford (NYSE: F) announced that 27,000 hourly employees had accepted early retirement or buyout packages, allowing the troubled automaker to work to restructure its staff to be more in line with demand for its products. Approximately half of them are not eligible for retirement benefits, which will provide a savings in health insurance costs. Another 10,000 employees are eligible for one of these programs.
As reports continue to come in, detailing more and more subprime foreclosures, Goldman Sachs (NYSE: GS) and Bear Sterns (NYSE: BS) announced second-quarter earnings. Both suffered hits, as Bear Sterns' profits dropped -10% excluding a writedown, and Goldman Sachs' climbed a paltry 1%. Bear shares rose slightly, while Goldman shares fell -3.4%. Freddie Mac (NYSE: FRE) reported results today as well, posting a loss. It lost -$211 million, or -46 cents a share, after showing a $2 billion profit last year. BullMarket.com subscribers can read more about Goldman Sachs' quarter in today's edition.
Del Monte Foods (NYSE: DLM) also released earnings today, with Q4 sales increasing 17.6% and full-year sales up 13.9%. Q4 profits, however, fell to $36.7 million, or 18 cents per share, from $57.9 million, or 29 cents per share, in the year-ago quarter. Looking forward, the company expects fiscal 2008 EPS of between 70-74 cents and revenue growth of 5-7%. The stock rose 4.8%.
Midwest Airlines (Amex: MEH) shareholders elected a new board, appointing three directors who were nominated by AirTran Airlines (NYSE: AAI). AirTran has expressed an interest in acquiring Midwest Airlines, which until now had been resisted by the Midwest board. The board will now entertain a presentation by AirTran, but has not decided whether or not to enter into negotiations. AirTran is offering $15 per share for the regional carrier. The vote count is still preliminary and must be certified.

Labels: AAI, BS, DLM, F, FRE, GS, MEH

The three major indices started the week by bouncing around, with the Nasdaq ending down a hair and the Dow and S&P 500 up slightly. While the average retail price of a gallon of gas dropped overnight and down from its peak in May, gas and oil futures all climbed on the day. After a sell-off on Friday, the commodities rebounded today with light sweet crude leading the pack rising $0.88. Part of the boost came when the Iranian Minister of Petroleum declared supplies sufficient and that OPEC need not raise production. Saudi Arabia also informed Asian and European customers that July shipments would remain at June levels (which is -10% lower than contracted supplies for the time period). Natural gas closed down slightly.
Emcor Group, Inc. (NYSE: EME), a provider of electrical and mechanical services, upped its full-year earnings and revenue outlook. It is now estimating earnings of $2.75-3.00 per share, an increase from its previous forecast of $2.45-2.80 per share. The company credits the increase in a backlog from greater-than-expected contracts signed in the first quarter. Analyst expectations place earnings at $2.86 per share. The company simultaneously announced that the board had approved a 2-for-1 stock split to be paid as a 100% stock dividend on July 9th for shareholders of record as of June 20th. The stock climbed 8.4%.
Steelmaker Nucor (NYSE: NUE) offered revised guidance on its second-quarter earnings, warning that it would fare far worse than Wall Street's expectations. Today's announcement put earnings at between $1.05-1.15 per share, while analysts had expected $1.39 per share. The company blamed worsening market conditions and price decreases on the lowered guidance. Its shares fell -5.9%. U.S. Steel (NYSE: X) and Steel Dynamics (Nasdaq: STLD) were also down on the news.
After talk that the M&A boom might finally slow down, several small takeovers were announced. James River Group (Nasdaq: JRVR), a specialty property and casualty insurer, announced that it would be taken private by hedge fund D.E. Shaw Group. The hedge fund will purchase the financial services company for $575 million in cash or $34.50 per share. This offer is -1.9% less than the Friday trading price of $35.18. Forty-five percent of current shareholders have agreed to back the transaction.
Rexam Plc (Nasdaq: REXMY), a London-based drink can maker, agreed to buy Owens-Illinois' (NYSE: OI) plastics packaging business. The deal, worth $1.83 billion, will help Rexam to position itself to get into the medicine-packaging business, which it sees as a potentially lucrative market.
Discount airline AirTran (NYSE: AAI) extended an offer it put forward for regional carrier Midwest Airlines (Amex: MEH) through August 10th. The offer is for $15 per share and was first put out in April. The April offer is a bump up from a previous offer of $11.25 per share. Midwest Airlines has said that it intends to resist AirTran's hostile bid. Calyon Securities, meanwhile, downgraded AirTran to "hold" from "add." Its shares fell -2.9%.
By the BullMarket.com Staff

Labels: AAI, EME, JRVR, MEH, NUE, OI, REXMY, STLD, X

Symbol
Name
Last Trade
Change
Volume
Related Info
GISX
GLOBAL IMAGING SYS
28.70 10:02AM ET
9.20 (47.18%)
1,724,267
Chart, Profile, More
NVAX
NOVAVAX INC
3.16 10:02AM ET
0.57 (22.01%)
4,720,435
Chart, Profile, More
FDC
FIRST DATA CP
32.70 9:57AM ET
5.80 (21.56%)
22,939,325
Chart, Profile, More
QVDX
QUOVADX INC
3.01 10:00AM ET
0.46 (18.04%)
244,097
Chart, Profile, More
SIMC
SIMCLAR INC
7.10 10:02AM ET
1.04 (17.16%)
86,608
Chart, Profile, More
EMT
EMBRATEL PARTI
16.90 9:56AM ET
2.33 (15.99%)
42,800
Chart, Profile, More
XFN
XFONE INC
2.95 9:48AM ET
0.49 (19.92%)
45,900
Chart, Profile, More
BAMM
BOOKS-A-MILLION IN
15.84 10:02AM ET
1.60 (11.24%)
99,601
Chart, Profile, More
EXX-A
E X X INC CL A
3.40 9:40AM ET
0.21 (6.58%)
3,100
Chart, Profile, More
GNVC
GENVEC INC
3.22 10:02AM ET
0.34 (11.81%)
237,560
Chart, Profile, More
ZVUE
HANDHELD ENTERTAINMT
2.88 10:02AM ET
0.13 (4.73%)
193,007
Chart, Profile, More
MEH
MIDWEST AIR GRP INC
14.6001 9:56AM ET
1.0901 (8.07%)
82,800
Chart, Profile, More
DANKY
DANKA BUS ADR
1.17 9:59AM ET
0.09 (8.33%)
51,882
Chart, Profile, More
CTTY
CATUITY INC
2.47 10:02AM ET
0.27 (12.27%)
65,138
Chart, Profile, More
TI
TELECOM ITL NEW
31.31 9:57AM ET
2.65 (9.25%)
127,400
Chart, , More
SLP
SIMULATIONS PLUS INC
10.718 9:56AM ET
0.788 (7.94%)
38,300
Chart, Profile, More
SNSA
STOLT-NIELSEN SA A
31.70 9:53AM ET
2.19 (7.42%)
10,909
Chart, Profile, More
ANS
AIRNET SYSTEMS INC
3.47 9:55AM ET
0.23 (7.10%)
14,300
Chart, Profile, More
MHJ
MAN SANG HLD INC NEW
6.40 9:50AM ET
0.38 (6.24%)
3,100
Chart, Profile, More
AVII
AVI BIOPHARMA INC
2.85 10:02AM ET
0.17 (6.34%)
196,777
Chart, Profile, More
LNX
LENOX GROUP INC
7.06 9:57AM ET
0.48 (7.29%)
51,400
Chart, Profile, More

Labels: ANS, AVII, BAMM, CTTY, DANKY, EMT, FDC, GISX, GNVC, LNX, MEH, MHJ, NVAX, QVDX, SIMC, SLP, SNSA, TI, XFN, ZVUE

Apple Inc. (NasdaqGS:AAPL - News) Chief Operating Officer Tim Cook reiterated that the company remains on track to release its iPhone mobile-phone product in June, and that Apple expects to sell 10 million of the devices in 2008.
Audible Inc. (NasdaqGM:ADBL - News) reported a fourth-quarter net loss of $700,000, or 3 cents a share, compared with a net loss of $2.18 million, or 9 cents a share, in the year-ago period. Revenue at the Newark, N.J.-based provider of Internet audio content rose to $23.3 million in the latest quarter from $18.3 million a year ago. The stock was upgraded to buy from hold at Jefferies & Co.
BEA Systems (NasdaqGS:BEAS - News) was upgraded to peer perform from underperform at Bear Stearns.
CDC Corp. (NasdaqGM:CHINA - News) lifted its financial outlook for 2007, saying it now expects adjusted net income of $57 million to $62 million, above its prior forecast of $55 million to $60 million. The company expects revenue of $415 million to $420 million for the year, a boost from its previous estimate of $401 million to $411 million.
Ciena (NasdaqGS:CIEN - News) was upgraded to overweight from neutral by J.P. Morgan, as the broker said the recovery in the optical market is greater than it first expected.
Deckers Outdoor Corp.'s (NasdaqGS:DECK - News) preliminary fourth-quarter results indicate net income nearly doubled to $23.5 million, or $1.82 a share, from $12.1 million, or 94 cents a share, a year earlier. The Goleta, Calif., maker of outdoor footwear and apparel said net sales increased 37% to $124.4 million from $91 million a year ago.
Dollar Thrifty Automotive Group (NYSE:DTG - News) reported a fourth-quarter loss of $2.7 million, or 11 cents a share, down from a year-ago profit of $8.2 million, or 31 cents a share. The latest results include 10 cents a share in transition costs related to the outsourcing of information technology services and a charge of 5 cents a share from a decrease in the fair value of derivatives, while last year's performance reflects a gain of 11 cents a share from an increase in the fair value of derivatives. Revenue rose 11.5% in the three months ended Dec. 31 to $392.8 million from $352.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of a penny per share in the December period. The company said the latest results reflect a very strong pricing environment, as well as significantly higher vehicle depreciation and interest costs compared to last year. Looking ahead, the Tulsa, Okla., car rental company sees earnings of $2.50 to $2.90 a share in 2007. Wall Street's current consensus estimate is for a profit of $2.62 a share for the year.
Dollar Tree Stores Inc.'s (NasdaqGS:DLTR - News) fiscal fourth-quarter net income rose to $97.6 million, or 96 cents a share, from $86.5 million, or 81 cents a share, a year ago. A Thomson Financial survey of analysts, on average, predicted earnings of 94 cents a share for the quarter. Analysts' estimates usually exclude items. The Chesapeake, Va., discount retailer's net sales for the quarter ended Feb. 3 rose 22% to $1.32 billion from $1.08 billion a year ago, boosted by an extra sales week in the current quarter. The company expects first-quarter earnings of 32 cents to 35 cents a share on sales of $935 million to $955 million.
Dycom Industries Inc. (NYSE:DY - News) shares rose after the Palm Beach Gardens, Fla.-based engineering and construction services provider reported fiscal second-quarter net earnings of $5.59 million, or 14 cents a share, up from $3.87 million, or 10 cents a share, in the year-ago period. Revenue rose to $258.3 million from $237.1 million. Analysts polled by Thomson Financial were expecting a per-share profit of 13 cents on revenue of $253.4 million. Dycom forecast fiscal third-quarter earnings from continuing operations of 23 cents to 28 cents a share on revenue of $275 million to $295 million. Analysts are looking for a per-share profit of 24 cents on revenue of $275 million.
Goodyear Tire & Rubber Co. (NYSE:GT - News) plans to record a charge of $65 million in the first quarter of 2007 for changes to its benefit and pension plans. The Akron, Ohio-based tire maker said, among other changes, current and future salaried retirees will contribute more toward the cost of their medical benefits and that the company would freeze its defined benefit pension plan for current salaried employees, replacing it with 401(k) retirement accounts. The changes will be phased in over a two-year period, and Goodyear expects savings of $80 million to $90 million in 2007, $100 million to $110 million in 2008, and $80 million to $90 million in 2009 and beyond.
Hospira (NYSE:HSP - News) reported a nearly 80% jump in fourth quarter profit Wednesday on higher product volumes, higher prices and favorable currency exchange. The company earned $47.4 million, or 30 cents a share, on the period - up from $26.6 million, or 16 cents. On an adjusted basis, Hospira said it would have earned 43 cents a share, vs. 32 cents in the last three months of 2005. Revenue came in at $706.5 million, a gain of 9.3%. The average estimate of analysts polled by Thomson Financial was for Hospira to earn 38 cents a share on $674 million in revenue.
Kenneth Cole Productions Inc. (NYSE:KCP - News) reported fourth-quarter net earnings of $7.99 million, or 39 cents a share, up 6.9% from $7.48 million, or 37 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 rose to $122.4 million from $119.8 million.
King Pharmaceuticals (NYSE:KG - News) reported fourth-quarter earnings of $37 million, or 15 cents a share, up from a year-ago loss of $95 million, or 39 cents a share. Excluding items, such as charges from asset impairment and an arbitration settlement, the company earned $98.8 million, or 41 cents a share, in the latest quarter. Revenue rose in the three months ended Dec. 31 to $512.9 million from $423.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 37 cents a share in the December period on revenue of $480.6 million.
Komag (NasdaqGS:KOMG - News) shares rose after American Technology Research analyst Shaw Wu lifted his rating on the hard-disk maker's stock to neutral from sell. Wu said Komag is benefitting from more sales to its largest customer, Seagate Technology , which accounts for 37% of Komag's revenue. However, Wu warned that Komag faces other fundamental challenges as it deals with rising costs and competition involving a shift to newer disk-recording technologies.
L-3 Communications (NYSE:LLL - News) was upgraded to neutral from underweight by J.P. Morgan, with the brokerage saying the stock should have limited downside given its high free cash flow yield. "We believe 2007 could be a more challenging year for defense stocks, and given L-3's more modest valuation, we no longer expect it to underperform the group," the broker said.
Leap Wireless International (NasdaqGS:LEAP - News) shares advanced after the San Diego-based provider of wireless communications services reported a fourth-quarter net loss of $39.4 million, or 60 cents a share. In the same quarter last year, the company posted a net profit of $4.95 million, or 8 cents a share. Revenue rose to $315.5 million from $228.9 million. Analysts polled by Thomson Financial were expecting a per-share loss of 35 cents on revenue of $316 million. Leap said it added 262,000 net new customers in the fourth quarter, and expects to add 260,000 to 320,000 net new customers in the first quarter.
Martha Stewart Living Omnimedia (NYSE:MSO - News) said fourth-quarter net income jumped to $16.2 million, or 31 cents a share, from $2.9 million, or 6 cents a share in the year-ago period. Total revenue rose to $97 million from $84.6 million. Analysts, on average, expected it to earn 25 cents a share on revenue of $95 million, according to Thomson Financial. For 2007, the company is expecting revenue in the range of $330 million to $340 million, operating income in the range of $5.5 million to $8.5 million and adjusted EBITDA in the range of $32 million to $35 million, including an investment of $8 million in "Blueprint" magazine.
Medical Action Industries (NasdaqGS:MDCI - News) was upgraded to buy from neutral at Sidoti & Co.
Merck & Co. (NYSE:MRK - News) said it expects its first-quarter profit will be 63 to 67 cents a share, excluding restructuring charges related to site closures and position eliminations, and targets reported first-quarter earnings per share of 58 cents to 64 cents. Whitehouse Station, N.J.-based Merck cited early revenue trends across Merck's range of products. The company also raised its anticipated 2007 earnings forecast range to $2.55 to $2.65 a share, excluding items related to site closures and position eliminations, and its full-year 2007 reported earnings range to $2.40 to $2.55 a share. Analysts, on average, expect it to earn 60 cents a share for the first quarter and $2.62 a share for the year, according to Thomson Financial. Merck said its forecasts do not reflect the establishment of any reserves for any potential liability relating to the Vioxx litigation.
Midwest Air Group Inc. (AMEX:MEH - News) , citing its own growth forecasts, urged its shareholders again Wednesday to reject a takeover offer from AirTran Holdings Inc. "AirTran's low-cost carrier business model is in trouble. By virtually any metric, AirTran's business is deteriorating," according to a letter Midwest sent to its shareholders.
Published By MarketWatch

Labels: AAPL, ADBL, BEAS, CHINA, CIEN, DECK, DLTR, DTG, DY, GT, HSP, KCP, KG, KOMG, LEAP, LLL, MDCI, MEH, MRK, MSO

Midwest Air Group Inc., which operates passenger airlines Midwest Airlines and Midwest Connect, on Thursday said December passenger traffic rose 18.6 percent.
The air carrier logged 335.7 million revenue passenger miles during the month, up from 283 million in the year-ago period. A revenue passenger mile is equal to one paying passenger flown one mile.
Capacity rose 7.6 percent to 471.4 million total available seat miles from 438.2 million. Load factor, or occupancy, rose to 71.2 percent from 64.6 percent in December 2005.
For the year, Midwest Air's traffic rose 21.5 percent to 4.09 billion revenue passenger miles, capacity rose 13.1 percent to 5.36 billion total available seat miles, and load factor rose to 76.2 percent from 71 percent in 2005.
Shares of Midwest Air climbed to a new 52-week high of $13.39 in morning trading on the American Stock Exchange before gliding back to $13.19, up 29 cents or 2.3 percent.
Published by AP

Labels: MEH, Midwest Air

The trading week started with the major indexes rising, but the news wasn't positive for Nuvelo Inc.
Shares of the San Carlos, Calif., biotech drug maker plunged Monday after two trials of a blood thinner drug it was developing with Bayer HealthCare failed, and the companies suspended a second study.
Nuvelo shares plummeted as much as 82 percent after the news broke, bottoming out at a 52-week low of $3.35, after closing on the Nasdaq the previous Friday at $19.55. Shares recovered a bit, to close the session at $4.05, still down more than 79 percent on the session. Volume of more than 90 million shares was more than 176 times normal daily trading in the shares.
Shares continued to trade heavily through the rest of the week, with more than 33 million shares changing hands Tuesday and about half that Wednesday. The stock did not recover from Monday's blow, however, edging up just slightly to close the week at $4.16.
Tuesday, microcap Internet search engine Mamma.com caught investors' eyes, when it introduced a new video search function that offers features not found even on Google.com.
Shares of the Montreal-based company soared 80.6 percent to close at $4.28 on the Nasdaq, while volume surged to nearly 30 million shares, about 25 times normal trading. Shares closed Monday at $2.37.
The rally continued Wednesday as share gained as much as 10 percent before settling back down, as volume remained extraordinary. After edging back Thursday, the exuberance for Mamma.com shares returned to end the week with shares hitting a new 52-week high of $5.28, a 30 percent gain, before giving up some of the surge to end up 9.6 percent at $4.44. Volume again topped 26 million.
For the week, Mamma.com shares gained 87 percent.
Wednesday, news and rumors of industry consolidation sent airline shares flying high, with Midwest Air Group Inc. getting the biggest lift, after the Oak Creek, Wis. regional carrier received a hostile takeover bid from AirTran Holdings Inc.
Midwest rejected the $290 buyout offer, but AirTran said it won't give up its quest.
That was enough for investors to keep the shares aloft. After spiking up almost 28 percent, shares edged backed a bit to close Wednesday up $1.30, or 22.2 percent, at $11.10, from their prior day close at 9.08. Trading topped 2 million shares, more than 7 times normal daily volume.
Shares continued to trade heavily and gained 8.6 percent Thursday, but gave up some of the gain even as trading volume ebbed in Friday's session. Nevertheless, shares were up 29 percent since AirTran made its bid, closing the week at $11.72.
Thursday it was more takeover talk, as shares of Worthington Industries Inc. shot up on speculation the metal processing company may be a buyout target. There was no bid for the Columbus, Ohio, company, but at least one analyst said it would be an attractive buy in a consolidating industry.
The stock leaped as high as $21.36 before retreating a bit, to end the session up $2.02, or 11 percent, at $20.32 from their close Wednesday at $18.30. Volume was nearly seven times normal daily trading.
Trading remained about twice as heavy as normal Friday, a share gained 10 cents more to close the week at $20.42.
And Friday, Weyerhaeuser Co., gained nearly 4 percent from their prior day close of $69.49, in trading more than nine times normal, after the lumber and paper producer was upgraded to "Buy," by Deutsche Bank following an announcement it would close one sawmill in Washington and build a newer, more efficient plant.
The move was seen as part of a needed effort to revamp the Federal Way, Wash., company's operations.
Shares gained $2.44, or 3.5 percent, to close at $71.93 on the New York Stock Exchange, after matching their 52-week high of $75.50 earlier in the session, on volume of 14.5 million shares.

Labels: AAI, DB, MAMA, MEH, NUVO, WOR, WY

By the BullMarket.com Staff
Stocks traded mixed and volume was light as investors weighed surprisingly good retail sales numbers for November against a rise in crude oil prices. Yesterday, oil traders sold crude in anticipation of strong U.S. inventory data. Instead, the government reported today that U.S. energy stockpiles dropped, which along with a meeting this week of OPEC's oil ministers was enough to send futures prices higher. In other markets, the price of the 10-year Treasury note dropped sharply, sending yields shooting up 9bps higher.
The retail sales results provided an early spark that fizzled, though late buying enabled the major indexes to all claim slight gains. According to the Commerce Department, retail sales grew by a seasonally adjusted 1.0% in November, which was much better than the 0.2% gain that was expected. It was the best month for retailers since June, according to government figures. October sales were also revised upward to a -0.1% decrease from a previously reported drop of -0.4%.
The possibility of additional consolidation in the airline industry gained new life today on reports that Continental Airlines (NYSE: CAL - News) and UAL (Nasdaq: UAUA - News) have discussed a possible merger. The stocks rose 4% and 5%, respectively. Separately, the much smaller AirTran Holdings (NYSE: AAI - News) offered to buy Midwest Air Group (NYSE: MEH - News) in a cash and stock deal valued at approximately $290 million, sending the former up 4% and the latter soaring 22%. US Airways Group (NYSE: LCC - News) started the airline merger ball rolling a month ago when it initiated a hostile bid for bankrupt Delta Air Lines that is still on the table. While investors reacted favorably to the possibility of a Continental-UAL merger and to AirTran's takeover efforts, US Airways closed slightly lower today.
Home Depot (NYSE: HD - News) advanced 1% after the company announced it would expand into China by acquiring Home Way, a home-improvement retailer with 12 stores in northeastern China. Terms were not disclosed. Electronics retailer Best Buy (NYSE: BBY - News) slumped again today, shedding -2% one day after a weaker-than-expected profit report pushed the stock down -5%. Analysts expect that intense competition for sales of big TVs and other gadgets will cut retailers' margins going forward. Circuit City (NYSE: CC - News) also declined again today by -2%.
Apple Computer (Nasdaq: AAPL - News) added 3% on a robust analyst outlook. Morgan Stanley raised its rating on Apple to "overweight" and increased its target from $90 to $110. The firm cited expectations of strong revenue contributions from new products like iPhone and iTV. In other ratings actions, Bank of America lowered its price target for Advanced Micro Devices (NYSE: AMD - News) to $20 from $23. The bank said the semiconductor maker was losing server market share to rival Intel (Nasdaq: INTC - News) and that the price of chips for desktop devices dropped more sharply than expected. AMD ended more than -1% lower.

Labels: AAI, AAPL, AMD, BBY, CAL, CC, HD, INTC, LLC, MEH, UAUA

ABM Industries Inc. (NYSE:ABM - News) said fourth-quarter net income rose to $61.6 million, or $1.24 a share, from $8.43 million, or 17 cents a share, during the same period in the prior year. Quarterly revenue rose to $776.7 million from $658.7 million in the prior year. For fiscal 2007, the facility services contractor said it sees income from continuing operations of $1 to $1.05 per share, and earnings before items of $1.10 to $1.15 per share. Also, ABM's board raised the quarterly cash dividend 9% to 12 cents per share. The dividend is payable Feb. 5 to shareholders as of Jan. 12. The board has also authorized a buyback for up to two million ABM shares.
AmerisourceBergen Corp. (NYSE:ABC - News) backed its full-year 2007 profit forecast ahead of its annual investor meeting.
Amgen Inc. (NASDAQ:AMGN - News) said it has authorized the buyback of an additional $5 billion in shares. The Thousand Oaks, Calif.-based biotechnology company has $1.5 billion remaining under its previous stock repurchase authorization.
Apple Computer Inc. (NASDAQ:AAPL - News) shares rose after Morgan Stanley analyst Rebecca Runkle raised her price target on Apple's stock to $110 from $90. Runkle said new products in 2007 would add to Apple's revenue growth, and she also raised her 2007 earnings estimate for the company to $3.13 a share from $2.58.
Atlas Energy Resources (NYSE:ATN - News) shares rose in the company's initial public offering.
Atmel Corp. (NASDAQ:ATML - News) shares surged after the chipmaker said it plans to restructure its operations, which includes the sale of two factories in Europe and job cuts. "This is the restructuring announcement that investors have been patiently awaiting," wrote Wedbush Morgan analyst Craig Berger, who lifted his price target on Atmel shares to $8 and reiterated his buy rating. Atmel, in an announcement Tuesday evening, said the restructuring will slash costs by $70 million to $80 million in 2007. Approximately 1,300 employees will cut from its 8,000-person workforce worldwide. Atmel, of San Jose, Calif., makes microcontroller and radio-frequency chips used in cell phones, disk drives, car alarms, camcorders and other applications.
Buckle Inc. (NYSE:BKE - News) said its board has authorized a one-time cash dividend of $3 per share. The dividend is payable Jan. 2 to shareholders as of Dec. 22, according to the Kearney, Neb.-based retailer.
Celanese Corp. (NYSE:CE - News) said it is relocating strategic management of the company's Acetyls business to Shanghai, China, as early as spring 2007. The chemical company added that it expects to derive 45% to 55% of its earnings from Asia by 2010, compared with the current level of 30%. The company also said it expects 2007 adjusted earnings of $2.60 to $2.90 a share. That view surrounds the average analyst estimate compiled by Thomson First Call of $2.85 a share. The company also said it was reorganizing into three business groups -- advanced engineered materials, consumer and industrial specialties and acetyl intermediates -- as it moves to improve earnings and reach its target of adding $300 million to $350 million to EBITDA (earnings before interest, taxes, depreciation and amortization) growth by 2010. The company is also selling its oxo products and derivatives businesses to private equity firm Advent International for 480 million euro, or about $630 million.
CPI International (NASDAQ:CPII - News) shares rose after the Palo Alto, Calif.-based provider of microwave and radio frequency products late Tuesday reported fiscal fourth-quarter net earnings of $6.19 million, or 35 cents a share. In the same quarter last year, the company posted a net loss of $2.4 million, or 19 cents a share. Revenue rose to $82.6 million from $74.9 million. Analysts polled by Thomson First Call had forecast a per-share profit of 25 cents on revenue of $83.3 million. In fiscal 2007, CPI expects earnings of $1.24 to $1.30 a share on revenue of $350 million to $355 million.
Depomed (NASDAQ:DEPO - News) shares rose after the company said it's received a commitment for up to $30 million in common stock equity financing from Azimuth Opportunity Ltd.
Exact Sciences Corp. (NASDAQ:EXAS - News) shares leapt after the Marlborough, Mass.-based biotech company said a study of stool DNA testing found that the test demonstrated an 88% sensitivity for colorectal cancer, with equal detection across all stages, regardless of the cancer's location in the colon. The study was published online in the American Gastroenterological Association's journal, Clinical Gastroenterology and Hepatology. Exact Sciences has licensed certain of its technologies to Laboratory Corp. of America Holdings (NYSE:LH - News) for a stool-based DNA screening test.
Gander Mountain Co. (NASDAQ:GMTN - News) shares rose after the St. Paul, Minn.-based outdoor products retailer late Tuesday said David Pratt, its new chairman, has agreed to buy 5.7 million newly issued shares, for $8.77 each, for a total purchase price of $50 million. The company also said it plans to open more than a dozen new stores in fiscal 2007 and upgrade a number of existing stores.
Guidance Software Inc. (NASDAQ:GUID - News) shares surged in the company's initial public offering.
Health Net Inc. (NYSE:HNT - News) lifted its full-year 2007 earnings forecast above Wall Street's average expectation due to its share buyback program.
Home Depot (NYSE:HD - News) is taking its first steps into the China market with its acquisition of 12 home-improvement stores, the retailer said. Home Depot will buy the stores in six cities from Home Way, China's first home-improvement retailer.
IPG Photronics Corp. (NASDAQ:IPGP - News) shares leapt in the company's stock market debut.
Lumera Corp. (NASDAQ:LMRA - News) shares jumped after the Bothell, Wash.-based company reported "encouraging" results for its multi-band millimeter wave wireless bridge. Lumera said data rates from 2.5 Gbps to 10 Gbps were successfully tested and that the company expects the system will have the capacity to operate at a range of up to three miles per data link. "In the next 12 to 18 months, we will continue to improve the functionality of the system, optimize the design, and continue testing as we work to create a commercial ready product," said Dr. Raluca Dinu, director of Lumera's Electro-Optics business unit, in a statement.
Martek Biosciences (NASDAQ:MATK - News) said fourth-quarter net earnings dropped to $641,000, or 2 cents a share, compared with $4.89 million, or 15 cents a share, in the same period last year.
MEDecision Inc. (NASDAQ:MEDE - News) shares rose in the company's opening day of trading.
Midwest Air Group (AMEX:MEH - News) shares surged after AirTran Holdings Inc. (NYSE:AAI - News) unveiled an offer to buy Midwest for $290 million.
Pixelworks (NASDAQ:PXLW - News) said Allen Alley plans to resign from the president and chief executive officer positions, effective Dec. 31. Hans Olsen, currently an executive vice president and chief operating officer, will serve in both roles on an interim basis until a successor is named. The Tualatin, Ore., semiconductor maker has formed a search committee to fill the positions of president and CEO. Also, the company said it now expects revenue of $28 million to $30 million for the fourth quarter, a forecast that's within its previously disclosed outlook.
Progen Industries Ltd.'s (NASDAQ:PGLA - News) shares soared after the Australia-based pharmaceutical company announced positive preliminary results from its Phase II clinical trial of PI-88 for the treatment of patients with primary liver cancer following surgical resection of the tumor. The trial demonstrated that PI-88 increased time to tumor recurrence by 76%, the company said. "These results offer excellent support as we proceed to Phase III development, with the guidance of the FDA, as rapidly as possible," said Justus Homburg, Progen's chief executive, in a statement. Progen said it's preparing for a much larger Phase III trial of PI-88 for the treatment of liver cancer.
Tibco Software (NASDAQ:TIBX - News) shares gained after the Palo Alto, Calif., maker of business process software said it expects revenue of about $158 million for the fourth quarter, ahead of a prior projection for revenue of between $140 million and $144 million. The company expects earnings for the quarter to exceed its prior view by more than 2 cents a share.
UAL Corp. (NASDAQ:UAUA - News) and Continental Airlines (NYSE:CAL - News) are reportedly in talks about a possible merger, according to The Wall Street Journal and The New York Times.

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