February 27th, 2009 by InvestorPoint

An early rally faded on U.S. stock markets Thursday, as the government said unemployment claims topped 5 million for the first time.

The U.S. Treasury Wednesday announced it would allow banks to convert federal bailout funds to common shares, freeing up billions from their balance sheets, giving bank stocks a boost. However, bad job news and slumping home sales Thursday subdued the early rally.  Healthcare Stocks and Drug Stocks traded lower after it was announced that President Obama’s $3.55 trillion budget plan for 2010 includes cuts to Medicare and Medicaid.   Private insurance plans that serve Medicare seniors would take the biggest hit but home health agencies, hospital and drug manufacturers would also be impacted.

By close, the Dow Jones industrial average lost 88.81 points, or 1.22 percent, to 7,182.08. The S&P 500 fell 1.58 percent, 12.07 points, to 752.83. The Nasdaq composite index lost 33.96 points, 2.38 percent, to 1,391.47.

On the New York Stock Exchange, 1,412 stocks advanced and 1,674 declined on a volume of 8.3 billion shares traded.

The benchmark 10-year U.S. Treasury bond lost 17/32 to yield 2.995 percent.

The euro rose to $1.2731, compared to Wednesday’s $1.2713. Against the Japanese yen, the dollar rose to 98.38 yen, compared to Wednesday’s 97.54 yen.

In Tokyo, the Nikkei average lost 3.29 points to 7,457.93, down 0.04 percent.

In London, the FTSE 100 index gained 66.66 points, 1.73 percent, to 3,915.64.

The following stocks were the Market Movers who led the Advances and Declines today.

 Advancers
 
Rowan Companies (RDC) shares were up 9.5% after their quarterly earnings exceeded Wall Street expectations.  For the quarter, the company reported earnings of $94.3 million or 83 cents per share down from $138.5 million or $1.23 per share a year ago.  Excluding one time items the earnings would have been $1.28 per share which exceeded the expected earnings of $1.09 per share.

Rowan is a provider of international and domestic contract drilling services. It also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.

MetroPCS (PCS) shares gained 5.5% after the company reported a better than expected profit and strong subscriber growth and effective cost controls.  For the fourth quarter the company reported a profit of $15 million or 4 cents a share compared with a loss of $47 million or 14 cents per share a year earlier.  Revenues grew 22% to $724 million.

MetroPCS is a wireless telecommunications carrier that offers wireless phone and broadband personal communication services through its subsidiaries.

Dynergy (DYN) shares rose 16% as the company reported it cut its fourth quarter loss.   The company reported a loss of $7 million or a penny per share compared with a loss of $46 million or 6 cents per share a year ago.  Revenues rose 10% to $795 million from $724 million.  The company said it expects to report a loss this year from $65 million to $140 million, up from the $20 million to $85 million loss the company had predicted in December.

Dynergy is a holding company conducts substantially all of its business operations through its subsidiaries. Its business is the production and sale of electric energy, capacity and electrical services.

 Decliners
 
General Motors (GM) shares were down almost 7% after the company reported a massive fourth quarter loss and went through $6,2 billion in cash while seeking more funding from the US Government.  The automaker reported a quarter loss of $9.6 billion or $15.71 per share compared with a loss of $1.5 billion or $2.70 per share a year ago.  Revenues dropped to $30.8 billion from $46.8 billion as the new from the automotive sector reported the worst industry sales in decades.

In the viability plan the company submitted to the US Treasury last week, GM requested up to $30 billion in low cost loans.

General Motors is engaged in the development, production and marketing of cars, trucks & parts. It develops, manufactures & markets vehicles through its automotive region: GM North America, GM Europe, GM Latin America/Africa/Mid-East and GM Asia Pacific.

Integrys Energy Group (TEG) shares dropped over 26% as the company reported earnings of 30 cents per share down from $1.11 per share a year ago well short of the $1.38 that Wall Street was expecting.  The company also forecasted 2009 earnings of $2.51 which was far lower than the $3.77 analysts had been predicting.

Integrys through its subsidiaries, operates as a regulated electric and natural gas utility company in the United States and Canada. It generates electricity through coal, natural gas and fuel oil, hydroelectric, nuclear, and wind resources.

Limited Brands (LTD) closed down over 13% after reporting an 86% drop in earnings and gave forecasts that were below analyst’s expectations.  For the quarter, the company reported net income of $16.1 million or 5 cents a share down from $388.6 million or $1.10 a share for the same quarter a year earlier.   Sales fell to $2.99 billion down from $3.28 billion and same store sales dropped 10%.

To help control costs, the company is reducing home office staff by 400 employees or 10%, has suspended pay increases and is controlling inventory.

Limited Brands is a specialty retailer of women’s clothes and intimate apparel, apparel, beauty and personal care products and accessories under various brand names.

February 26th, 2009 by InvestorPoint

U.S. stock indexes closed lower Wednesday, the day the U.S. Government was set to begin its “stress tests” for the nation’s largest financial firms.

Banks shares rose Tuesday, after Federal Reserve Chairman Ben Bernanke said he didn’t believe nationalizing banks was necessary. How the financial stress tests play out remains to be seen.

By close Wednesday, the Dow Jones industrial average dropped 80.05 points, or 1.09 percent, to 7,270.89. The S&P 500 lost 1.07 percent, 8.24 points, to 764.90. The NASDAQ 100 lost 16.40 points, 1.14 percent, to 1,425.43.

On the New York Stock Exchange, 1,208 stocks advanced and 1,878 declined on a volume of 7.6 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 1 6/32 to yield 2.9412 percent.

The euro fell to $1.2707, compared to Tuesday’s $1.2846. Against the Japanese yen, the dollar rose to 97.62 yen, compared to Tuesday’s 96.81 yen.

In Tokyo, the Nikkei average gained 192.66 points to 7,461.22, up 2.65 percent.

In London, the FTSE 100 index gained 32.54 points, 0.85 percent, to 3,848.98.

The following stocks were the Market Movers who led the Advances and Declines today.

Advancers

Gymboree (GYMB) shares closed up over 9% as the company reported fourth quarter earnings of $24.4 million or 75 cents per share up from $20.4 million of 61 cents per share from a year ago.  Revenues rose from $241 million from $203.7 million.

Gymboree operates specialty retail stores selling apparel, accessories and play programs for children.

Hormel (HRL) shares were up almost 3% after the food producer was named to the S&P 500 effective after the close of trading on March 3^rd.  The company will replace American Capital Limited and will be replaced in the S&P MidCap 400 index by Trustmark Corp.

Hormel is engaged in the production of meat and food products and the marketing of those products throughout the United States and internationally.

Nashua Corp (NSHA) shares closed up over 50%.  The company reported Net sales for the fourth quarter of 2008 were $67.7 million, compared to $72.3 million for the fourth quarter of 2007. Gross margin for the fourth quarter of 2008 was $7.7 million, or 11.3%, compared to $12.9 million, or 17.9%, for the fourth quarter of 2007. Loss from continuing operations before income taxes for the fourth quarter of 2008 was $2.9 million, compared to income from continuing operations before income taxes of $2.0 million for the fourth quarter of 2007. Net loss for the fourth quarter of 2008 was $6.0 million, or $1.11 per share, compared to net income from continuing operations of $1.1 million, or $0.21 per share, for the fourth quarter of 2007.

Nashua is a manufacturer, converter and marketer of labels and specialty papers. Its products include thermal and other coated papers, wide-format papers, pressure-sensitive labels, tags, and transaction and financial receipts.

Decliners

First Solar (FSLR) shares dropped over 21% as the company reported that its fourth quarter profits had doubled but also gave a weak outlook for 2009.  The company said it expected a drop in revenue of about $200 million as it expects solar panel demand to fall amid increasing competition.

First Solar designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology.

FCStone Group (FCSX) shares down over 60% as the company announced that it may have to set aside as much as an additional $80 million to cover energy trading losses.  The company had previously set aside $25.7 million in a previous quarter.

FCStone is an integrated commodity risk management company providing risk management consulting and commodity transaction execution services to commercial commodity intermediaries, end-users and producers.

DreamWorks Animation (DWA) shares closed down over 10% as the company reported a 45% drop in net profit to $51.6 million or 58 cents per share on revenues of $199.8 million for the quarter.  Full year reported revenues totaled $650.1 million and net income of $142.5 million or $1.57 per share.

DreamWorks Animation’s business includes the development, production and exploitation of computer-generated, or CG animated films and characters in the theatrical, home entertainment, television, merchandising and licensing and other media markets.

February 25th, 2009 by InvestorPoint

U.S. stock indexes gained ground Tuesday, after Federal Reserve Chairman Ben Bernanke said nationalizing banks was not necessary.

“I don’t see any reason to destroy the franchise value or to create the huge legal uncertainties of trying to formally nationalize a bank when that just isn’t necessary,” Bernanke told the Senate Banking Committee.

The remarks were good news for bank stocks and helped boost the sector. Bank of America (BAC) rose 19.18 percent. Citigroup (C) gained 11.21 percent. Wells Fargo (WFC) climbed 16.77 percent.

By close, the Dow Jones industrial average gained 236.16 points, or 3.32 percent, to 7,350.94. The S&P 500 rose 4.01 percent, 29.81 points, to 773.14. The NASDAQ 100 rose 3.9 percent, 54.11 points, to 1,441.83.

On the New York Stock Exchange, 2,676 stocks advanced and 438 declined on a volume of 7.4 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 10/32 to yield 2.797 percent.

The euro fell to $1.2837, compared to Monday’s $1.27. Against the Japanese yen, the dollar rose to 96.81 yen, compared to Monday’s 94.47 yen.

In Tokyo, the Nikkei average fell 2.16 percent, 159.04 points to 7,217.12.

In London, the FTSE 100 index dropped 34.29 points, 0.89 percent, to 3,816.44.

The following stocks were the Market Movers who led the Advances and Declines today.

 
Advancers
Home Depot (HD) share gained over 10%after reporting a fourth quarter loss of $54 million or 3 cents per share versus earnings of $671 million or 40 cents per share a year earlier.    Revenues dropped to $14.6 billion.  The company stated that excluding restructuring charges and write downs, the company would have earned 19 cents per share.  Analysts had expected a profit of 16 cents per share on revenues of $14.7 billion.

Home Depot is a home improvement retailer which sells a wide assortment of building materials, home improvement and lawn and garden products and provides a number of services. In addition to The Home Depot stores, the Company has a retail store format that sells products and services primarily for home decorating and remodeling projects called EXPO Design Center and two retail store formats focused on professional customers called Home Depot Supply and The Home Depot Landscape Supply.

Brookfield Homes (BHS) shares closed up almost 60%.  Brookfield Homes is a land developer and homebuilder which designs, constructs and markets single-family and multi-family homes.

Rambus (RMBS) shares closed up 40% as the company said the Supreme Court has denied the FTC’s request to review its antitrust case that was filed against the company in 2002.  Rambus designs, develops and licenses chip interface technologies that are foundational to nearly all digital electronics products.

 
Decliners

Heartland Payments (HPY) shares closed down over 30% as the company reported lower than expected quarterly profits and cut its dividend by 72%.  The company also said it was victim to a recent security breach of its system and that it might incur a loss as a result but does not enough information yet to come up with an estimate.

For the quarter, Heartland reported net income of $8 million or 21 cents per share which was up from the $6.8 million or 17 cents per share a year ago.  Analysts were expecting 26 cents per share.  Revenues increased 13 percent to almost $386 million which was the expected $397 million.  To preserve cash, the company cut its quarterly dividend to 2.5 cents per share down fro 9 cents per share.

Heartland Payments provides payment-processing services related to bank card transactions for merchants throughout the United States. Its other merchant services include the sale and rental of terminal equipment and the sale of terminal supplies.

RadioShack (RSH) closed down almost 25% after the company reported net income of $62 million or 50 cents per share down from $101 million or 77 cents per share a year earlier.  Sales were down to $126 billion down from prior years $1.36 billion as the company reported same store sales were down over 9%.

RadioShack is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain and non-RadioShack branded kiosk operation.

 
Notables

The New York Stock Exchange is considering relaxing a rule that requires shares to trade above a dollar due to de pressed stock prices. Currently, an NYSE- listed company’s shares cannot remain below $1 over 30 consecutive days.  If that happens, the company gets about 6 months to prove it can boost its stock price.

The Nasdaq stock market announced in October a three month suspension of its minimum bid price and market value and then extended it in December.

The NYSE had already lowered the minimum market capitalization for stocks, decreasing to $15 million from the previous $25 million.

The proposed change would require the approval of the Securities and Exchange Commission and no formal proposal has yet been submitted.

February 24th, 2009 by InvestorPoint

The markets churned lower today as U.S. stock indexes retreated from early gains Monday, continuing a slide that erased 485 points from the Dow Jones industrial average last week.

Widespread selling knocked tires down 11.04 percent as a group. Iron and steel fell 10.9 percent. But, consumer electronics, automotive and airline shares rose.

By close Monday, the Dow lost 250.89 points, 3.41 percent to 7,114.78, its lowest mark since May 1997. The S&P 500 lost 26.72 or 3.47 percent to 743.33. The NASDAQ 100 index lost 53.51 or 3.71 percent to 1,387.72.

On the New York Stock Exchange, 412 stocks declined and 2,694 advanced on a volume of 9.4 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 9/32 to yield 2.764 percent.

The euro fell to $1.2694, compared to Friday’s $1.2837. Against the Japanese yen, the dollar rose to 94.59 yen, up from Friday’s 93.05 yen.

In Tokyo, the Nikkei average lost 40.22 points to 7,376.16, down 0.54 percent.

In London, the FTSE 100 index lost 38.33 points, 0.99 percent, to 3,850.73.

The following stocks were the Market Movers who led the Advances and Declines today.

 
Advancers
US Airways (LCC) shares closed up almost 14%

US Airways Group A holding company, whose main business activity is the operation of a major network air carrier, through its wholly owned subsidiaries US Airways, Piedmont, PSA, MSC and Airways Assurance Limited.

Continental Airlines (CAL) shares rose almost 7%

Continental is engaged in the business of transporting passengers, cargo and mail in United States.

UAL Corp (UAUA) the parent company of United Airlines rose almost 20%

UAL Corp is a holding company together with its subsidiary, United Air Lines, Inc., provides transportation of persons, property and mail throughout the U.S.

 
Decliners

 
General Electric (GE) closed near a 14 year low after an analysts report that GE Capital could require an injection of equity and valued the division at zero.  The report speculated that GE may have to cut is dividend, which they have vowed to pay through 2009, to help cover the costs.

GE is a technology, media & financial services company, with products & services ranging from aircraft engines, power generation, water processing & security technology to medical imaging, business & consumer financing, media content & industrial products.

Hewlett Packard (HPQ) closed down over 6%

Hewlett Packard is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including in the public and education sectors.

February 20th, 2009 by InvestorPoint

When Obama signed his stimulus bill earlier this week he said “I don’t want to pretend that today marks the end of economic problems”.  Wall Street appears to agree as the Dow Jones industrial average blows through the November low while losing over 1%.   The 7,465 close was the lowest since October 2002.  The S&P 500 and Nasdaq composite both also lost over 1%.

The following stocks were the Market Movers who led the Advances and Declines today.

 
Advancers

Sprint Nextel (S) shares up almost 20% despite company reporting losing 127 million customers and a loss of $1.6 billion or 57 cents per share for the quarter.  The company wrote down the remaining value of its 2005 purchase of Nextel.  Without the write-down, the loss would have been 1 cent per share.  Revenues were down 14% to 8.4 billion.

Analysts had been expecting a higher loss of 3 cents per share and the number of lost customers was an improvement from the third quarter when the company lost 1.32 million customers.

Sprint is a global communications company which offers a range of wireless and wireline communications products and services that are designed to meet the needs of individual consumers, businesses and government customers.

Whole Foods Markets (WFMI) shares up over 37% after the company posted earnings that exceeded Wall Street’s estimates.  The company also provided better than expected forecasts for 2009.  For the quarter, the company reported earnings of $27.8 million or 20 cents per share compared with $39.1 million or 28 cents per share for the same quarter last year.  Revenues were up slightly to $2.47 billion from $2.46 billion a year earlier.

Analysts were expecting 14 cents per share.

Whole Foods and its subsidiaries own and operate the chain of natural and organic foods supermarkets.

CVS Caremark Group (CVS) shares closed up over 6% as the company reported a 17% increase in profits.  For the quarter, the company reported earnings of $949 million or 65 cents per share up from $811.2 million or 55 cents per share a year ago.  Analysts were expecting 69 cents per share on revenues of $23.29 billion.

CVS is a provider of prescriptions and related healthcare services in the United States. It operates two business segments: Retail Pharmacy and Pharmacy Services.

GameStop (GME) shares closed up over 7% as the company narrowed its forecasts to the high end of its prior range and said it is expecting a continued gain in profit and sales this year.  The company is now expecting earnings of $1.33 to $1.34 per share on sales of $3.5 billion, a 22% increase over a year ago.

GameStop is a retailer of new and used video game systems and software and personal computer entertainment software and related accessories.

 Decliners

General Electric (GE) shares down almost 5% to close just above $10 share its lowest level in more than a decade as the company has now lost almost 70% of its value in the past year as investors express concern over the effect of the credit crunch.

GE is a technology, media & financial services company, with products & services ranging from aircraft engines, power generation, water processing & security technology to medical imaging, business & consumer financing, media content & industrial products.

Wells Fargo (WFC) shares closed down 8% as bank shares fell again due to ongoing concerns about the industry’s health and rumors of nationalizing banks.

Wells Fargo is a diversified financial services company which provides retail, commercial and corporate banking services through banking stores located in 23 states.

Hewlett Packard (HPQ) shares were down almost 8% as the company forecasted earnings below analyst’s expectations.  The computer manufacturer predicted earnings between 84 and 86 cents per share on revenues between $27.5 and $27.7 billion.  Wall Street was expecting revenues of $30.95 billion and earnings of 89 cents per share.

Hewlett Packard is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including in the public and education sectors.

LDK Solar (LDK) shares closed down 13% as the company cut its fourth quarter revenue forecast and said they most likely will report a loss as a result of the cost of inventories.

LDK is a manufacturer of multicrystalline solar wafers.

 Notables

A day after CBS News (CBS) slashed its dividend another venerable news institution suspended theirs. New York Times (NYT) announced today that they were suspending the quarterly dividend on the company’s Class A and Class B common stock.  The company had previously cut its fourth quarter dividend to 6 cents per share from 23 cents per share they paid in the third quarter.

February 19th, 2009 by InvestorPoint

The Dow ends day up 3 points, stock markets close relatively unchanged as Wall Street gives lukewarm response to governments $75 billion housing plan.

The following stocks were the Market Movers who led the Advances and Declines today.

 
Advancers
 
MBIA (MBI) shares closed up almost 30 percent on news that the bond insurance company will split its municipal bond insurance business from its mortgage-related guarantees.    MBIA transferred $537 billion of municipal bond guarantees to MBIA Insurance Corp of Illinois which they plan to rename National Public Finance Guarantee Corp.  The new company received an AA- rating from Standard & Poor’s down substantially from their prized AAA rating prior to the mortgage crisis.

MBIA is a provider of financial guarantee products and specialized financial services that meet the credit enhancement, financial and investment needs of its public and private-sector clients worldwide.

CardioNet (BEAT) shares rose over 12% as the heart monitoring device maker reported earnings of $6.9 million or 29 cents per share compared with a loss of $666 million or 22 cents per share during the same period last year.  Revenues rose 44% to $34.4 million from $23.9 million last year.  Analysts were expecting a profit of 15 cents per share on revenues of $33.9 million

CardioNet is a provider of ambulatory, continuous, real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual’s health.  They completed their initial public offering in March 2008 at $18 per share.

Inverness Medical Innovations (IMA) shares closed up almost 10% as the company reported profits of $16.4 million or 14 cents per share compared with a loss of $15.8 million or 24 cents per share from the same quarter a year ago.  Revenues were $459.3 million, a 60% increase.  On an adjusted basis, the company earned 66 cents per share which exceeded analysts’ expectations of 57 cents per share.

Inverness Medical is a global manufacturer and supplier of rapid diagnostics. Its products and services are focused in the areas of infectious disease, cardiology, oncology, drugs of abuse and women’s health.

 Decliners
 
Comcast (CMCSA) shares closed down over 4% as the cable television provider reported a 32% decline in fourth quarter profits and that subscriber growth is decreasing as a result of the economy.  Comcast also announced it would raise ts annual divided to 27 cents per share, an 8% increase and reiterated that it would most likely be unable to complete its stock buyback program this year due to market conditions.

For the quarter, the company reported earnings of $412 million or 14 cents per share down from $602 million or 20 cents per share from the same quarter last year.

Comcast is a cable operator in the United States and offers a variety of entertainment and communications products and services

Deere & Co (DE) shares closed down as the company reported a quarterly profits dropped 45% and slashed its 2009 earnings outlook.

Deere operates through four business segments; agricultural equipment, commercial and consumer equipment, construction and forestry and credit. It provides products and services for agriculture, forestry, construction, landscaping and irrigation.

Chesapeake Energy (CHK) shares were down 74 cents as the natural gas producer posted a further quarter loss as tumbling prices forced it to record a charge of $1.7 billion.

Chesapeake is an oil and natural gas exploration and production company engaged in the exploration, development and acquisition of properties for the production of crude oil and natural gas from underground reservoirs.

 Notables
 
General Electric (GE) reported that CEO Jeff Immelt will not be taking bonus and incentives worth at least $11.7 million which the company’s compensation committee said he earned.  His salary was $3.3 million the company said in a proxy filing.  His salary has been unchanged since 2003.

February 18th, 2009 by InvestorPoint

Not even President Obama’s signing of his massive stimulus plan could stop the market from testing multi-month lows.  The Dow Jones industrial average dropped almost 300 points, or 3.8%, to close a hair above its 5 ½ year low reached on November 20^th the previous low of this bear market.  The S&P 500 index dropped over 4.5% while the Nasdaq composite index lost  4.2%

Advancers

Aarons Rents (RNT) shares were up over 5% as the furniture rental company reported solid fourth quarter earnings and increased its profit guidance for the year.  The company reported quarterly earnings of $404 million, an 11% increase from the $364 million for the same period last year.  Net income rose to $21.1 million or 39 cents per share up front $15.5 million and 28 cents per share Analysts were expecting revenues of $418 million and earnings of 35 cents per share. Aarons is a retailer of consumer electronics, computers, residential and office furniture, household appliances and accessories.

Medtronics (MDT) shares were up over 5% as the company earned $723 million or 65 cents per share on revenues of $3.49 billion, a 3% increase over the $3.41 billion from a year ago.  The 65 cents per share earnings were a substantial increase over the 7 cents per share from a year ago when earnings were reduced by lawsuit charges and acquisition costs. The increase in earnings can be attributed to tighter operating costs and better than expected sales of their spinal implants whose revenues gained 3% to $832 million. Medtronics provides a range of products and therapies that help solve many challenging, life-limiting medical conditions such as alleviating pain and restoring health etc.

Teva Pharmaceutical (TEVA) shares were up almost 4% as the company reported a fourth quarter loss of $688 million or 88 cents per share compared with a profit of $570 million or 69 cents per share a year earlier.  Sales were up 11% to $2.85 billion from $2.58 billion.  The loss reflected special items including write downs on the company’s acquisition of Barr Pharmaceuticals.  On an adjusted basis, Teva earned 76 cents per share. Teva is a global pharmaceutical company, which develops, produces and markets generic drugs covering all major treatment categories

Decliners

FreightCar America (RAIL) shares were down over 12% as company predicts a significant reduction in their business for 2009 and that the company will continue to reduce expenses to improve profitability and conserve cash. The stock was down despite the company reporting a fourth quarter profit of $8.3 million or 70 cents per share compared with a loss of $16.6 million or $1.42 per share a year earlier.  The company also reported almost doubling of revenues to $271.9 from $137.1 a year earlier. Freight Car America manufactures, rebuilds, repairs, sells and leases freight cars used for hauling coal, other bulk commodities, steel and other metals, forest products and automobiles.

Ameren Corp (AEE) shares close down 17% as the energy utility company reported a substantial drop in fourth quarter income and a announced an almost 40% reduction in dividend to preserve cash.  For the quarter, the company reported profits of $57 million or 27 cents per share down from $108 million or 52 cents per share a year ago. The company cut its divided to 38.5 cents per share to an annual payout of $1.54 per share, down from the previous $2.54 cents per year. Ameren through its subsidiaries operates rate-regulated electric generation, transmission and distribution businesses, rate-regulated natural gas transmission and distribution businesses and non-rate-regulated electric generation businesses.

Diamond Offshore (DO) shares were down almost 5% as a sharp drop in oil and natural gas prices combined with shaky stock market brought down the whole sector.  On a positive note, it was announced late Friday that Diamond Offshore will replace Weatherford International (WFT) in the S&P 500 Index (^SPX).  Weatherford is in the process of redomesticating to Switzerland which makes it ineligible for the index. Diamond Offshore is a global offshore oil and gas drilling contractor with a current fleet of 44 offshore rigs consisting of 30 semisubmersibles, 13 jack-ups and one drillship.

Notables

Sirius XM (SIRI) avoided having to file for Chapter 11 bankruptcy filing by agreeing to a deal in which Liberty Media (LMDIA) will loan $530 million in exchange for 40% of the radio satellite provider’s common stock.  Shares were up 52% today as a result of the news. The Sirius XM and Liberty Media Reach Agreement for Investment calls for the investment to be made in 2 phases.  Under the terms of the deal the first phase Liberty will loan Sirius $280 million of which $250 million will be funded Tuesday. Sirius will use $171.6 million to repay most of its 2 1/2% convertible notes that are due at the end of business Tuesday.  The loan, to be repaid in December 2012, carries an interest rate of 15% and is secured by the assets that currently secure the existing credit agreements. The second phase will require Liberty to loan an additional $150 million to XM Satellite Radio, Sirius XM’s wholly owned subsidiary. Liberty has also agreed to offer to purchase up to $100 million of the loans outstanding under XM Satellite Radio’s existing credit facilities from the lenders. Upon completion of the second phase Sirius will issue Liberty 12.5 million shares of preferred stock convertible into 40% of the common shares of the company.

Bank of America made its first $402 Million TARP dividend payment to the U.S. Government.   Approximately $223 million is due as a result of the government’s $15 billion investment in Bank of American (BAC).  An additional $50 million is relates to the government’s $10 billion investment in the bank as part of its agreement to buy Merrill Lynch & Co.  The remaining $129 million is the result of the government’s $20 billion investment in January to help close the Merrill Lynch acquisition.

Trump Entertainment Resorts (TRMP) files petition for bankruptcy protection. The Company filed their voluntary petition before the casino oper ator’s bondholders could present their own petition to do so. The Chapter 11 petition listed assets of $2.06 billion and debt of $1.74 billion as of Dec. 31. This is the third time Trump’s casinos have sought protection from creditors.

February 16th, 2009 by InvestorPoint

Stocks declined sharply in the final minutes of trading as the Dow Jones Industrial Average ending down over 82 points

The following stocks were the Market Movers who led the Advances and Declines today.

Advancers

Peet’s Coffee & Tea (PEET) shares were up 8% after the coffee and tea chain reported a jump in profits of 21% in the fourth quarter.  Net Income grew to $4 million or 29 cents per share up from 23 cents per year for the same quarter last year.  Revenues grew 12% from $709 million to $79.1 million. Peet’s sells fresh roasted coffee, hand selected tea and related merchandise in several distribution channels, including grocery, home delivery, foodservice and office accounts and company-operated retail stores.

Coinstar Inc (CSTR) shares were up over 22% today as the company announced plans to buy the remaining interest in Redbox Automated Retail LLC.  Redbox has over 12,000 locations and is a leader in providing automated DVD rentals including latest movie releases for only $1.  Their kiosks are found across the country in McDonalds, grocery stores as well as Walgreens and Walmarts. The company also reported fourth quarter revenues of $261 million and net income of $4.2 million.  For the year revenues totaled $911 million with net income of $14.1 million.  Coinstar also raised 2009 revenue projections to $1.2 billion – 1.3 billion, up from its prior projection of $1 billion. Coinstar offers a range of solutions for retailers’ storefronts, including self-service coin counting, entertainment services and e-payment services.

Treehouse Foods (THS) up almost 11% as the company reported adjusted earnings that exceeded analysts expectations and forecast a solid outlook for 2009.  For the fourth quarter the company reported net income dropped to $6.8 million or 22 cents per share down from the 14.3 million or 46 cents per share last year.  The drop in earnings was due to large write-downs and one time charges.  Excluding those items, the company’s profits grew to 55 cents per share beating the streets expectations of 51 cents per share. For 2009, the company expects to grow earnings at 11 to 14 percent or $1.80 to $1.85 per share. Treehouse is a food manufacturer servicing the retail grocery & foodservice distribution channels. Its products include non-dairy powdered coffee creamer; salad dressings & sauces; jams, jellies & pie fillings; infant feeding products etc.

Decliners

Netgear (NTGR) shares were down almost 5% after posting a fourth quarter loss that was worse than analyst expectations. The company reported a 19% drop in revenues to $161.4 million and a loss of $7.7 million or 22 cents per share.  Analysts were expecting a profit of 7 cents per share and revenues of $157 million. Netgear designs, develops and markets networking products for small businesses. And home users worldwide.

Life Partners Holdings (LPHI) shares were down over 20% as Nasdaq adjusted the share price to reflect the company’s 5-for-4 stock dividend that will be paid on Tuesday February 17, 2009. Life Partners is a financial services company that is engaged in the secondary market for life insurance settlements also called “life settlements”.  The company has completed over $84,000 transactions since its inception in 1991.

Notables

General Motors (GM) is considering a Chapter 11 filing and the creating of a new company according to a Wall Street Journal report.  This plan would combine all of GM’s viable assets into a new company.  The remaining assets would be liquidated or sold under protection of a bankruptcy court. GM, along with Chrysler, both face a Tuesday deadline to file restructuring plans to the government as part of an agreement to receiving federal aid. This plan is only one of the options GM is consider along with asking the government for additional aid while it continues to rework its existing contracts with the UAW and existing bond holders.

February 13th, 2009 by InvestorPoint

Markets stage late day rally as Dow Jones Industrial Average closes down less than 7 points after being down 250 in intraday trading.  Reports of government plans to help subsidize troubled homeowners in danger of foreclosure.  Investors found relief in the reported plan’s focus on one of our economy’s major issues, helping people with their mortgage payments.

The following stocks were the Market Movers who led the Advances and Declines today.

Advancers

Buffalo Wild Wings (BWLD) shares were up 34% as the company reported a 32.6% in revenues to $121.2 million for the quarter and same store sales increased 4.5%.  Net income increased over 28% to $7.7 million or 43 cents per share.  The Company also provided optimistic forecasts for 2009 with expectation of 25% growth in revenue accompanied by a 25% gain in earnings

Borg Warner Inc (BWA) shares were up after the company’s reported earnings above analyst’s expectations.  The auto parts supplier company reported a loss of 70 cents per share for the quarter and 31 cents per share for the year.  The earnings were above Wall Street’s anticipations and the company also announced plans to reduce its workforce by 24% and expected to be both profitable and cash flow positive in 2009.

Astronics Corporation (ATRO) was up over 25% as the company reported higher than expected quarterly profits.  The company, a provider of electrical distribution systems, earned 44 cents a share excluding items on revenues that were up 22%.  The company attributed this increase to rising military sales and an increase in commercial transport sales.

 

Decliners

New Oriental Education (EDU) shares were down almost 23% as the private education provider cut its third quarter revenue outlook as a result of the economic problems in China.  The company expects third quarter revenues of $62 to $65 million down from prior expectations of $65.5 to $67.5 million.

Pacer International, Inc (PACR) dropped 34% and closed the day at their lowest levels in years as the freight transportation company reported earnings significantly under Wall Street’s expectations and suspended its dividend.  The company lost $1.87 per share as the result of writedowns.  Excluding this item the company earned 24 cents a share down over 60% from the prior year.

comScore, Inc. (SCOR) shares were down almost 25% after the Web analysis company reported fourth quarter revenue below analysts expectations.  While revenues rose over 25% to $31.6 million, analysts had expected $32.5 million.  The company attributed the lower revenues to slower international growth and the strong US dollar.

 

Notables

Toyota Motor Corp. (TM) announced it will be cutting North American production beginning in April.  The company announced additional non-production days, reduced work weeks, the elimination of salaried and executive bonuses and executive pay cuts.  The company also announced a voluntary exit program for people wishing to pursue other opportunities and predicts no wage increases in the foreseeable future.

Additionally, Rep. Senator Judd Gregg of New Hampshire withdrew his nomination as Commerce Secretary citing “irresolvable conflicts” with President Obama’s economic stimulus plan.  He did thank the President for his “willingness to reach across the aisle”

February 12th, 2009 by InvestorPoint

Dow Jones industrials ends the day modestly higher after news late in the trading day that lawmakers had agreed on $790 billion stimulus plan.

The following stocks were the Market Movers who led the Advances and Declines today.

Advancers

XL Capital Ltd. (XL) shares rose 61% after posting an operating profit that far exceeded Wall Street’s expectation.  The company reported a profit of 48 cents per share excluding goodwill and impairment charges.  Analysts were expecting earnings of 38 cents per share.

Choice Hotels International (CHH) shares were up over 10% after reporting fourth quarter earnings above Wall Street’s expectations.  For the fourth quarter, net income fell to $18.7 million or 30 cents per share from $27.9 million or 44 cents per share from one year ago.  The company also lowered forecasts for 2009.

Decliners

Nvidia Corp (NVDA) shares tumbled over 12% after posting a large loss as a result of plunging sales.  Revenues were down 60% to $481 million from $1.2 billion a year earlier.  Nvidia reported a loss of $147 million or 27 cents per share compared with a profit of $257 million or 42 cents per share for the same quarter last year.  The company also reported a one time quarterly charge of $150 million which is reflected in that loss.

Research in Motion Ltd (RIMM) shares fell 15% after the company forecast profits to be at the low end of expectations.  The company said that net subscriber account additions are 20% higher than the 2.9 million they forecasted in December and that their new high-end smart phones were attracting new customers.  They reported that existing customers and especially businesses were not upgrading as frequently as they had expected which has been hurting their profit margins.

Notables

Shares of Sirius XM Radio (SIRI) dropped more than 50% on reports about their ability to meet its pending debt payments and the possibility of the satellite radio provider seeking bankruptcy protection.  Sirius has a $175 million of convertible notes maturing on February 17 with a $350 million secured bank debit due in May.  An additional $433 million of convertible notes are due in December.  The stock is now trading around a nickel per share down from a 52 week high of $3.89.