April 10th, 2012 by InvestorPoint

Best Buy Co Chief Executive Officer Brian Dunn resigned today just weeks after introducing a turnaround strategy for the struggling retailer.

“Best Buy Announces Leadership Transition

The board of directors of Best Buy Co., Inc. (NYSE:BBY) today announced that Brian Dunn has resigned as chief executive officer and director. There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company. Director G. Mike Mikan has been named interim CEO to lead the company while a search for a new CEO is underway. Richard Schulze, the founder of Best Buy, continues to serve as chairman. ”

Read entire article here …..continued

March 10th, 2009 by InvestorPoint

A wide range of investment worries dragged down U.S. stocks Monday, following a shaky start to the week in Asian markets.

The Nikkei 225 index was down in Japan, off 87.07 points, or 1.21 percent, to 7,086.03. The Hang Seng index in Hong Kong dropped 4.84 percent. In China, the Shanghai Composite fell 3.6 percent.

European markets were mixed Monday. In London, the FTSE 100 index rose 0.33 percent — 11.67 points — to 3,542.40 and in Frankfurt the Dax was up 0.7 percent to 3,692.03. The CAC 40 in Paris was off 0.6 percent. The broader DJStoxx 600 closed down 0.97 percent.

In New York, Dow Jones industrial average lost 1.21 percent closing 79.89 points lower to 6,547.05. The Standard & Poor’s 500 lost 1% or 6.85 to 676.53. The Nasdaq composite lost almost 2% or 25.21 to close at 1,268.64.

Decliners outweighed by advancers on the New York Stock Exchange by almost 2.5 to 1 as  888 stocks advanced and 2,207 declined on a volume of 8.1 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 1/32 to yield 2.879 percent.

The euro fell to $1.2603, compared to Friday’s $1.2607. Against the Japanese yen, the dollar fell to 98.79 yen, compared to Friday’s 98.85 yen.

March 6th, 2009 by InvestorPoint

U.S. stock markets stumbled Thursday on word auditors warned General Motors Corp. might not be able to avoid bankruptcy.   Investors struggled with the continuing uncertainty about our financial system and a report from the Commerce Department which said orders for manufactured goods fell by 1.9 percent during the first month of the year. While this was better than the 3.5 percent drop economists had expected, it marked a record sixth straight month of declines.

Also on investor’s minds is Citigroup (C) trading below $1 per share and new concerns about news coming out of General Motors (GM). The warning signs for GM have been available for months, but a Securities and Exchange Commission filing putting a formal stamp on the possibility of bankruptcy rattled investors.  On the day, GM stock fell 15 percent to $1.86 a share.

At the close, Dow Jones industrial average lost 281.40 points or 4.09 percent to 6,594.33 its lowest level since 1996.   The Standard & Poor’s 500 dropped 30.32 or 4.25 percent to 682.55. The Nasdaq composite index dropped 54.15 or 4 percent to 1,299.59.

Decliners outnumbered advancers over 10 to 1 on the New York Stock Exchange as 237 stocks advanced and 2,883 declined on a volume of 8.3 billion shares traded.  The Russell 2000 index of smaller companies lost 21.85 or 5.88 percent.

The benchmark 10-year U.S. Treasury bond rose 1 12/32 to yield 2.813 percent.

The dollar was mixed. The euro fell to $1.2544, compared to Wednesday’s $1.264. Against the Japanese yen, the dollar fell to 98.06 yen, compared to Wednesday’s 99.07 yen.

In Tokyo, the Nikkei average gained 142.53 points to 7,433.49, up 1.95 percent.

In London, the FTSE 100 index dropped 116.01 points, 3.18 percent, to 3,529.86

Some of the today’s downward Markets Movers

General Dynamics (GD) shares closed down over 7% as the company reduced its full year outlook to $6 – $6.10 share from $6.70 to $6.75 a share.  As corporations and private buyers have tightened up their spending to conserve cash, privately owned business jets have suffered and have even become the fodder of front page news and Presidential lashings as examples of corporate excess.  The company said it expects to deliver 73 of its large cabin aircraft down from the 94 previously expected.  Midsized aircraft production was reduced to 24 from 30.  In contradiction to the current trend, the company’s Board of Directors raised its quarterly dividend to 38 cents per share from 35 cents per share payable May 8^th.

General Dynamics offers products and services in business aviation; combat vehicles, weapons systems and munitions; shipbuilding design and construction; and information systems, technologies and services.

Gamestop (GME) shares were down over 14% after Amazon Inc (AMZN) announced the launching of a service that allows customers to trade in used games for credit towards the purchase of new titles.  The service is a direct threat to a key facet of Gamestop’s business although Amazon will have to rely on mail order service which has proven to have limited success.

Gamestop is a retailer that specializes in new and used video game systems and software and personal computer entertainment software and related accessories.

PetSmart (PETM) shares closed down 7.5% despite the company reporting fourth quarter profits rising to $78.4 million or 62 cents per share from$75.4 million or 59 cents per share a year earlier.  Revenues rose to $1.36 billion from $1.33 billion.

PetSmart is a provider of specialty retail products, services and solutions for the lifetime needs of pets.

March 5th, 2009 by InvestorPoint

U.S. stock indexes rebounded Wednesday, ending a five day losing streak and a downward trend that included a Dow Jones industrial average skid of 299 points Monday.

Markets were up following China’s lead, The Wall Street Journal reported. The Shanghai composite index jumped 6 percent on news that China will increase spending on infrastructure and manufacturing

Unlike recent days in which markets started the day with rises, on Wednesday the gains held up to the close.

The Dow Jones industrial average gained 149.82 points, up 2.23 percent, at 6,875.84. The Standard & Poor’s 500 rose 2.38 percent, 16.54 points, to 712.87. The Nasdaq composite index gained 32.73 points, 2.48 percent, to 1,353.74.  The Russell 2000 index of smaller companies closed up 10.29 points or 2.85%.

Advancers outweighed by decliners on the New York Stock Exchange as 2,485 stocks advanced and 625 declined on a volume of 7.2 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 27/32 to yield 2.986 percent.

The euro rose to $1.2637, compared to Tuesday’s $1.2585. Against the Japanese yen, the dollar rose to 99.11 yen, compared to Tuesday’s 98.31 yen.

In Tokyo, the Nikkei average gained 61.24 points to 7,290.96, up 0.85 percent.

In London, the FTSE 100 index gained 133.78 points, up 3.81 percent, to 3,645.87.

 Advancers
 
Caterpillar (CAT) a large exporter to China closed up over 13% on the news of increase spending.

Caterpillar provides construction and mining equipment; diesel and natural gas engines and industrial gas turbines. It also provides financing alternatives to its customers.

Freeport McMoRan (FCX) shares rose over 13%.

Freeport is engaged in the copper, gold and molybdenum mining through its majority-owned subsidiary, PT Freeport Indonesia.

 Decliners
 
General Electric (GE) shares closed down over 4.5%, its fourth consecutive day of decline as investors showed concern about GE’s exposure to bad debt and its potential need to raise outside capital as well as weather GE will loses its prized AAA credit rating.

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.

JP Morgan (JPM) stock was down over 8.1% and was the biggest loser of the Dow components.  In fact, financials as group were down over ongoing worries about the fate of struggling banks.

JP Morgan is a financial holding company whose activities are organized, for management reporting purposes, into six business segments: Investment Bank, Retail Financial Services, Card Services, Commercial Banking, Treasury & Securities Services and Asset Management.

 Notables
 
Costco (COST) reported that its quarterly profits were down 27% as the company was forced to cut prices to win market share during the year end holiday season.  The company reported a profit of $239.7 million or 55 cents per share as opposed to $327.9 million or 74 cents per share a year ago.  Analysts had expected 60 cents per share.  Same store sales were down 3% and revenues were down 1% to $16.49 billion

March 4th, 2009 by InvestorPoint

U.S. markets comeback fizzles

U.S. markets headed lower Tuesday afternoon as a brief early rally faded amidst general economic distress.

Falling 299 points Monday, the Dow Jones industrial average closed the previous session at its lowest point in 12 years.   Pessimism continued to drive stocks to losses in an erratic session as investors struggle with the reality that the US economy is far from recovery.

Federal Reserve Chairman Bernake tells Congress that the recovery depends on the government’s ability to stabilize our financial markets.

By close, the DJIA lost 37.27 points or 0.55 percent to 6,726.02. The Standard & Poor’s 500 fell 4.49 or 0.71 percent to 696.33 closing below 700 for the first time since late 1996. The Nasdaq 100 composite index dropped 1.84 or 0.14 percent to 1,321.01.  The Russell 2000 index of smaller companies fell 6.79, or 1.9 percent, to 361.01.

Advancers were outweighed by decliners on the New York Stock Exchange, 1,003 stocks advanced and 2,109 declined on a volume of 7.2 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 8/32 to yield 2.894 percent.

The euro fell to $1.2562, compared to Monday’s $1.2576. Against the Japanese yen, the dollar rose to 98.24 yen, compared to Monday’s 97.43 yen.

In Tokyo, the Nikkei average lost 50.43 points to 7,229.72, down 0.69 percent.

In London, the FTSE 100 index dropped 3.14 percent, 113.74 points, to 3,512.09.

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

 Advancers
 

AutoZone Inc (AZO) shares hit a 52 week high and closed up 7.8% after the company posted a 9% growth in profits on higher sales as more people repair their cars instead of purchasing new ones.    For the quarter the company reported a profit of $115.9 million or $2.03 a share up from $106.7 million or $1.67 per share a year earlier.  Same store sales were up over 6%.

Autozone is a retailer and distributor of automotive parts and accessories.

Chico’s FAS (CHS) shares rose 3.2% despite the fact the company reported losses of $40.5 million or 23 cents per share up from a loss of $20.5 million or 12 cents per share.  Revenues dropped to $373.4 million from $409.3 million.

Chico’s is a retailer of casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items under the Chico’s, White House | Black Market and Soma by Chico’s brand names.

 Decliners
 
Par Pharmaceutical (PRX) shares plunged over 19% after the company reported a quarterly loss of $30.5 million or 91 cents per share versus a profit of $5.5 million of 16 cents per share.  Revenues rose 4 percent to $161.3 from $155.1 million.

Par Pharmaceutical through its subsidiary is in the business of developing, manufacturing and distributing generic and branded drugs in the United States.

MBIA (MBI) shares closed down almost even after dropping almost 9% in intraday trading after the company reported a loss of $1.2 billion or $5.30 per share an improvement over the $2.3 billion or $18.5 a share for the same quarter a year earlier.  The company reported a $1.7 billion loss on insured derivatives.

MBIA is engaged in providing financial guarantee insurance, as well as related reinsurance, advisory and portfolio services; and investment management services, including advisory services, asset/liability products and conduits on a global basis

March 3rd, 2009 by InvestorPoint

Markets slide, Dow below 6,800

U.S. stock indexes, reeling from months of negative economic news, plunged Monday in a global sell-off that pushed the bear market to new lows.  Stocks fell for the fourth straight session that took the S&P 500 down to levels not seen since October 1996.  The Dow Jones industrial average fell below 7000 for the first time in 11 years and has now lost more than half its value since its record high over 14000 in October 2007.

By close, the Dow Jones industrial average fell 299.64 points, 4.24 percent, to 6,763.29, the lowest closing since April 1997.

The S&P 500 dropped 4.66 percent, 34.27 points, to 700.82. The NASDAQ 100 composite index lost 54.99 points, 3.99 percent, to 1,322.85.

Decliners outweighed advancers on the New York Stock Exchange, 185 stocks advanced and 2,934 declined on a volume of 7.2 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 1 8/32 to yield 2.872 percent.

The euro fell to $1.2579, compared to Friday’s $1.2676. Against the Japanese yen, the dollar fell to 97.40 yen, compared to Friday’s 97.60 yen.

In Tokyo, the Nikkei average lost 288.27 points to 7,280.15, off 3.81 percent.

In London, the FTSE 100 index shed 204.26 points, 5.33 percent, to 3,625.83.

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

 
 Decliners
 HSBC Holdings (HBC) shares plunged 19% after reporting a 70% drop in earnings for 2008. The company reported it will close most of its US consumer-lending business and will stop making new loans in the U.S. through its HFC and Beneficial divisions and close branches “as soon as commitments to customers are satisfied” resulting in 6,100 job losses.  Additionally the company said it will raise almost $18 billion from shareholders.

HSBC provides financial services through four customer groups and global businesses: Personal Financial Services; Commercial Banking; Global Banking and Markets; and Private Banking.

Dish Networks Corp (DISH) common stock shares fell 12% as the company posted fourth-quarter net income of $217 million vs. $175 million a year earlier and as revenues of $2.92 billion, a modest 1% from the same quarter a year ago. Diluted earnings were 48 cents a share compared with 39 cents a year earlier. The satellite TV operator reported a loss of subscribers of 102,000 in the quarter.

Dish Networks is a provider of satellite digital television and subscription programming to customers across the United States

International Paper (IP) shares closed down over 8% as the company announced it will cut its quarterly dividend by 90 percent and plans to divest 143,000 acres of land in the southeastern U.S in an effort to preserve cash and reduce debt.

The paper company International Paper is a global paper and packaging company that is complemented by an extensive North American merchant distribution system, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.

March 1st, 2009 by InvestorPoint

U.S. stock indexes slumped Friday with the Dow Jones industrial average setting a record for declines for declines in February in points lost.

The Dow shed 937.93 points in the month and fell 11.7 percent, the largest February percentage drop since 1933.  The S&P 500 fell 11% and the Nasdaq lost 6.7%.

By close, the DJIA was 119.15 points lower on the day, holding just above 7,000 at 7,062.93 points, down 1.66 percent.

The U.S. Commerce Department said Friday the gross domestic product fell 6.2 percent in the fourth quarter, pushing investors into a selling stance.

The S&P 500 hit a 12 year low closing at its lowest closes since December 1996.  For the day, the index fell 17.74 points, 2.36 percent, to 735.09. The Nasdaq composite index lost 13.63 points, 0.98 percent, to 1,377.84.

Decliners outweighed advancers on the New York Stock Exchange as 1,010 stocks advanced while 2,057 declined on a volume of 8.3 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 6/32 to yield 3.022 percent.

The euro fell to $1.2664, compared to Thursday’s $1.2739. Against the Japanese yen, the dollar fell to 97.56 yen, compared to Thursday’s 98.35 yen.

In Tokyo, the Nikkei average gained 110.49 points to 7,568.42, up 1.48 percent.

In London, the FTSE 100 index lost 85.55 points, 2.18 percent, to 3,830.09.

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

 Advancers
 
Shanda Interactive Entertainment (SNDA) shares were up almost 3% as the company reported a 17% increase in net income on revenue growth of 42%.  For the quarter the company reported income of $50.1 million or 72 cents per share up from $40.1 million or 54 cents per share for the same period one year ago.

Shanda Interactive is an interactive entertainment media company and an operator of online games in China. It offers a portfolio of diversified entertainment content including some of the most popular massively multi-player online role playing games.

Dell (DELL) shares closed up almost 4% after the company reported earnings of $351 million or 18 cents per share down from $679 million or 31 cents per share a year ago.  Revenues dropped to $13.4 billion for $16 billion.  Dell reported pre tax charges restructuring charges of $277 million or 11 cents per share.  Excluding those charges, Dell would have earned 29 cents per share for the quarter which was above the 26 cents per share that analysts were expecting.  Analysts were also expecting $14.1 billion in sales.

Dell designs, develops, manufactures, markets, sells, and supports computer systems and services that are customized to customer requirements.

 Decliners
 
Citigroup (C) shares closed down over 39% after the band reached an agreement with the US government to convert its preferred stake into common stock and install three new directors.  They also announced suspension of dividends to common and preferred shareholders.

The conversion, the government’s third attempt to shore up the bank, results in the US Government owning 36% of the company.  While the move will not inject any new capital into the bank it will save them from not having to pay the dividend on the $25 billion.

Citibank also stated that private investors will also participate in the conversion of preferred shares and that the conversions will cut the current shareholder’s stake in the bank to only 26%.

Citibank is a global financial services holding company, which provides a range of financial services to consumer and corporate customers.

General Electric (GE) shares were down over 6% yesterday after the conglomerate announced that they were slashing their dividend to 10 cents per share from 31 cents per share to preserve cash.  The move is intended to strengthen its balance sheet and prevent downgrades on its prized AAA credit rating which is under review for downgrade.  The move, which CEO Jeff Immelt has previously refused was coming, is expected to save GE $9 billion per year.  The company is an original Dow Jones component and has paid dividends every year since 1899.  It had previously increased dividends annually for the past 31 years.

GE’s stock has lost nearly 70% since mid September over concerns about under funding of its retirement program, declining asset values, the exposure of its financial division to the tightening of restrictions on credit and the effect that has on its ability to fund its dividend.

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.

Deckers Outdoor Corp (DECK) shares down over 22% despite the fact the company reported a 14% rise in fourth-quarter profit and a 56% increase in revenues.   The company also reported that expected its first quarter revenues to increase 22%, but that would be accompanies earnings per share falling 28% from 86 cents of the year-ago quarter. Wall Street was expecting a first quarter profit of 90 cents per share.

Deckers Outdoor is a designer, producer & brand manager of footwear and the category creator in the sport sandal, luxury sheepskin and footwear segments.

 Notables
 

Corporate insiders, Corporate Executives and large shareholders have routinely used the stock they own as collateral for lines of credit and to purchase shares in margin accounts

In recent days there have been a number of large margin call related stock sales by insiders.  Even partners at Goldman Sachs (GS) have been forced to borrow money to cover margin calls as they leveraged their Goldman stock to purchase alternative investments such as hedge funds and private equity deals.

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 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.