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Monday, March 19, 2007

Stock Market Wrap Mar. 19

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

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posted by Stock Administrator @ 8:05 PM   0 Comments

Private Equity to Purchase Servicemaster Co. (SVM)

Lawn care service and pest control provider ServiceMaster Co. bowed to shareholder pressure Monday and agreed to be bought by an investment group lead by private equity firm Clayton, Dubilier & Rice Inc. in a cash deal valued at $4.5 billion.
The owner of TruGreen Lawn Care, Terminix pest control and Merry Maids cleaning service, announced the deal nearly five months after the Downers Grove company announced it was exploring strategic alternatives.
The move followed pressure from later shareholders Ariel Capital Management LLC and Newcastle Capital Management LP to consider a sale or buyout.
The buyout group will also assume about $1.02 billion in debt.

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posted by Stock Administrator @ 1:01 PM   0 Comments

Wall Street Advances on Merger News

Stocks rose Monday as Wall Street joined overseas stock markets in riding a wave of merger news to bounce back from a losing week.
The buyout news, particularly the possibility of an enormous deal that would unite Dutch bank ABN Amro Holding NV with British bank Barclays PLC, propelled stocks higher as investors theorized that companies, since they're willing to cut new deals, remain upbeat about the economy.
The advance came at the start of an important week for economic data; reports will include the Chicago Federal Reserve's take on manufacturing in the Midwest. The market was also waiting for Tuesday's start of the U.S. Federal Reserve's two-day meeting on interest rates. While few expect the Fed will adjust short-term interest rates, investors will be looking for any change in the central bank's posture that could hint at where rates are headed in the coming months.

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posted by Stock Administrator @ 11:05 AM   0 Comments

Stocks Open Higher In Early Trading

Stocks opened higher Monday as Wall Street looked to rising stocks overseas and a falling yen as it tried to bounce back from a losing week.
The advance came ahead of a report on home sales as well as a reading on manufacturing in the Midwest. The economic data arrive before the start Tuesday of the Federal Reserve's two-day meeting on interest rates.
While few expect the Fed will adjust short-term interest rates, investors will be looking for any change in the central bank's posture that could hint at where rates are headed in the coming months.
In the first hour of trading, the Dow Jones industrial average rose 79.87, or 0.66 percent, to 12,190.28.
Broader stock indicators also moved sharply higher. The Standard & Poor's 500 index rose 9.97, or 0.72 percent, to 1,396.92, and the Nasdaq composite index rose 15.58, or 0.66 percent, to 2,388.24.
Bonds fell as stocks made gains. The yield on the benchmark 10-year Treasury note rose to 4.57 percent from 4.55 percent late Friday. The dollar wax mixed against other major currencies, while gold prices fell. The dollar rose to 117.34 yen from 116.73 yen late Friday.
Economic data will again loom large on Wall Street in the coming week as investors try to determine whether the economy can pull off a so-called soft landing or whether areas of weakness such as the housing sector are poised to drag the economy into a pronounced slowdown.
On Monday, the National Association of Home Builders expects to release its index on builders' perceptions of new single-family home sales and near-term sales prospects on Monday. Also, the Chicago Fed is expected to report that its manufacturing index rose 0.3 percent in February.
Concerns about the economy and areas such as the subprime mortgage lending sector, which makes a business of making loans to people with poor credit, helped push stocks lower last week. The Dow industrials fell 1.35 percent, the S&P 500 gave up 1.13 percent, and the Nasdaq composite index slid 0.62 percent.
In corporate news, ServiceMaster Co., a provider of housecleaning, landscaping, and pest-control services, agreed to be acquired by an investment group for about $4.48 billion. The deal, led by Clayton, Dubilier & Rice Inc., has a value of $5.5 billion when including about $1.02 billion in debt. The company said in late November it was considering a change in its strategy.
The Russell 2000 index of smaller companies rose 6.26, or 0.80 percent, to 785.03.
Overseas, Japan's Nikkei stock average rose 1.59 percent, Hong Kong's Hang Seng index advanced 1.65 percent, and the sometimes volatile Shanghai Composite Index rose 2.87 percent despite an increase in interest rates in China. In afternoon trading, Britain's FTSE 100 rose 0.52 percent, Germany's DAX index added 1.04 percent, and France's CAC-40 rose 0.89 percent.
Published by Tim Paradis, AP Business Writer

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posted by Stock Administrator @ 10:11 AM   0 Comments

Tuesday, February 13, 2007

Tuesday's Biggest Stock Gainers

LCAPA, TWX, CBS, MA, PXR, PCLN, SVM, SNDA, TEVA, WYN
Liberty Media (NasdaqGS:LCAPA - News) has agreed to acquire the Atlanta Braves baseball team from Time Warner Inc. (NYSE:TWX - News), according to media reports. The company also agreed to exchange its stake in CBS Corp. (NYSE:CBS - News) for a Green Bay, Wis., television station and $170 million in cash. In the tax-free transaction, Liberty will swap its 7.6 million CBS common shares for a newly created CBS subsidiary that holds the TV station, valued at $64 million, and the cash. The price at which Liberty will exchange its CBS shares will be based upon the average trading price of CBS Class B shares during a specified period prior to the closing.
Mastercard (NYSE:MA - News) was upgraded to overweight from neutral at J.P. Morgan.
Paxar Corp. (NYSE:PXR - News) reported fourth-quarter earnings of $9.5 million, or 23 cents a share, up from a loss of $800,000, or 2 cents a share, in the year-ago period. Excluding certain items, the White Plains, N.Y., maker of retail identification products earned $12.6 million, or 30 cents a share, in the latest quarter. Sales rose in the latest three months to $230.8 million from $206.8 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 29 cents a share in the December period. Looking ahead, Paxar said it expects earnings of $1.13 to $1.21 a share in 2007 on sales of between $925 million and $945 million. This view includes restructuring-related charges of between 11 to 15 cents a share. Excluding items, the company sees earnings of $1.24 to $1.36 a share for the year. Wall Street's current consensus estimate is for a profit of $1.33 a share in 2007.
Priceline.com Inc. (NasdaqGS:PCLN - News) reported profit more than doubled on stronger business in Europe. For the quarter ended Dec. 31, the company said profit was $13.2 million, or 33 cents per share, compared to $3.8 million or 9 cents a share a year ago. Sales for the quarter rose 28% to $235.9 million.
ServiceMaster Co. (NYSE:SVM - News) said fourth-quarter earnings rose to $38.9 million, or 13 cents a share, from $27 million, or 9 cents a share, a year earlier. Excluding items, earnings for the quarter ending Dec. 31 would have been 11 cents a share. Revenue increased 7.1% to $770.7 million from last year's $719.6 million. Analysts surveyed by Thomson Financial had been expecting earnings of 10 cents a share and revenue of $767.1 million, on average. The Downers Grove, Ill. lawn care and pest control company said it expects adjusted 2007 earnings of 67 to 68 cents a share, vs. analyst forecasts of 68 cents a share.
Shanda Interactive Entertainment Ltd. (NasdaqGS:SNDA - News) said it swung to net income for the fourth-quarter of 240.3 million renminbi ($31 million), or RMB3.32 (42 cents) per American Depositary Share. During the same period in the prior year, the net loss was RMB538.9 million, or RMB7.58 per ADS.
Teva Pharmaceutical Industries Ltd. (NasdaqGS:TEVA - News) said fourth-quarter net income rose 51% as sales increased 63%, citing sales of new products as well as the addition of sales from Ivax. Profit reached $460 million, or 56 cents a share, from $305 million, or 45 cents, in the year-earlier period. The latest quarter's adjusted earnings, eliminating certain tax-related income and certain charges, were 53 cents. A survey of analysts by Thomson Financial produced a consensus estimate of 58 cents a share. Sales rose to $2.28 billion from $1.4 billion. Thomson's survey estimated $2.26 billion.
Wyndham Worldwide Corp. (NYSE:WYN - News) said fourth-quarter net income rose to $92 million, or 48 cents a share, from $91 million, or 45 cents a share. Net revenue rose to $970 million from $861 million. Analysts, on average, expected it to earn 40 cents a share on revenue of $912 million, according to Thomson Financial. For 2007, the hotel operator raised its profit forecast for the year to a range of $1.84 to $2.02 a share, excluding separation and related costs, as well as legacy matters. The prior forecast was a range of $1.77 to $1.95 a share. Revenue for the year is expected to come in at $4.11 billion to $4.26 billion. For the first quarter, Wyndham expects to earn 37 cents to 40 cents a share, excluding items. Analysts polled by Thomson Financial expect it to earn 38 cents a share in the first quarter and $1.87 a share for the year on revenue of $4.14 billion, on average

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posted by Stock Administrator @ 1:10 PM   0 Comments

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