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Stocks To Watch: CVS, Goldman Sachs, Intel, Lennar, Toyota

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Stocks to keep an eye on during today's trading session...

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Stocks to watch for Wednesday, January 17

  • Allied Capital (ALD) said it has sold its portfolio company, Palm Coast Data Holdco Inc., to Kable Media Services, a subsidiary of Amrep (AXR). The value of the transaction was $92 million.
  • American Power Conversion (APCC) said its shareholders have approved the $6.1 billion acquisition of the company by French electrical-equipment group Schneider Electric. American Power Conversion expects the deal to close in the first quarter of 2007.
  • Blackbaud (BLKB) said it has acquired privately owned sister companies Target Software Inc. and Target Analysis Group Inc. for $60 million, plus up to an additional $2.4 million under a 1-year earn-out arrangement. Blackbaud sees the acquisition cutting earnings per share, before items, in 2007 by 3 cents to 6 cents.
  • A Cablevision (CVC) board panel rejected an $8.9 billion buyout plan advocated by the cable operator's controlling Dolan family.
  • Cheesecake Factory (CAKE) said Peter D'Amelio, president and chief operating officer of the restaurant division, is leaving for personal reasons, effective Feb. 2. The company is searching for a replacement.
  • CombinatoRx (CRXX) said Daniel Grau has been promoted to the newly created position of chief operating officer and Jan Lessem is retiring as chief medical officer, effective Jan. 31.
  • CVS (CVS) and Caremark Rx (CMX) said qualified Caremark Rx shareholders will receive a one-time cash dividend of $2 per share after the proposed merger between the companies closes. The companies will also retire 150 million shares of the new company after the deal closes.
  • Fifth Third Bancorp (FITB) said it has named Kevin Kabat chief executive officer, effective April 17. The Cincinnati-based provider of financial services said Kabat will succeed George Schaefer as CEO. Schaefer will remain chairman of the board and its executive committee in a non-executive capacity.
  • Flow International (FLOW) said it has completed its previously disclosed audit committee investigation of allegations that certain members of Flow Asia intentionally and inappropriately recognized certain revenues in fiscal 2007 that should have been recorded in fiscal 2006. As a result, the company said it expects its restated fiscal 2006 results to show an increase to revenue of about $2 million, with a net after tax increase to net income of about $2 million.
  • Fulton Financial (FULT) said fourth-quarter net income rose, as interest income gained, to $46.6 million, or 27 cents a share, from $40.9 million, or 25 cents a share, during the same period in the prior year. The Lancaster, Pa.-based financial holding company said quarterly net interest income rose to $121.7 million from $107.9 million in the prior year.
  • Genesis HealthCare agreed to be taken private in a deal valued at $1.25 billion plus the assumption of about $450 million in debt.
    Goldman Sachs's private-equity group will pay $1.4 billion to acquire insurance broker USI Holdings and pay off its debt.
  • Health Care Property Investors (HCP) said it has priced a public offering of 6.77 million of its shares. The real estate investment focusing on healthcare facilities said it has granted underwriters a 10-day option to purchase an additional 1.02 million shares.
  • Intel's (INTC) earnings tumbled 39% and revenue fell 5%, signaling that a counterattack against rival AMD is taking a toll on the chip maker's profit. Intel also projected that its gross profit margin will decline.
  • Landry's (LNY) Restaurants offered to acquire upscale steakhouse chain Smith & Wollensky (SWRG) for about $64.5 million.
  • Lennar (LEN) swung to a quarterly loss, as crumbling conditions in the U.S. housing market forced the home builder to take land-related write-downs.
  • Linear Tech (LLTC) said second-quarter net earnings rose slightly to $105 million, or 34 cents a share, from $103.2 million, or 33 cents, last year, as sales were virtually flat. Excluding stock-based compensation, the company posted per-share earnings of 39 cents vs. 36 cents last year.
  • Medtronic (MDT) unit Physio-Control Inc. said it has voluntarily suspended shipment of products in the U.S. manufactured at its facility in Redmond, Wash. The decision to suspend U.S. product shipment was made to address quality-system issues that were identified by the company and the Food and Drug Administration.
  • National Financial Partners (NFP) said it expects its fourth-quarter per-share earnings "will be broadly consistent" with the consensus analyst estimate. "This view is consistent with the growth of NFP's firms, acquisition activity, and the challenging life insurance underwriting environment," the company said in a statement.
  • Public Service Enterprise Group (PEG) said its board has approved increasing its quarterly cash dividend 2.6% to 58.5 cents per share from 57 cents per share. The Newark energy company said the dividend is payable to holders as of March 7.
  • Rackable Systems (RACK) said it expects fourth-quarter results to range from a net loss of $683,000, or 2 cents a share, to net earnings of $194,000, or 1 cent a share. The company said it is "disappointed" it did not meet its per-share earnings and gross margin goals, citing higher-than-expected DDR memory pricing and intense competition as reasons for the missed targets.
  • Shaw Group (SGR) reported a first-quarter net loss of $20.3 million, or 26 cents a share. The results include $49.3 million, or 44 cents a share, in charges related to Shaw's 20% investment in Westinghouse. Excluding these charges, the company posted per-share earnings of 19 cents vs. 41 cents in the prior year.
  • Spherio (SFN) forecast earnings from continuing operations of 16 cents to 18 cents a share on revenue of $501 million. The company added that it will record a tax benefit of $29.7 million, or 52 cents a share, related to the resolution of international tax matters.
  • St. Joe's (JOE) said it has entered into an exclusive listing agreement with Eastdil Secured LLC, a Wells Fargo (WFC) unit, for the marketing and potential disposition of St. Joe's office building portfolio. The portfolio is located in seven markets throughout the Southeast, and comprises 17 buildings with 2.3 million rentable square feet.
  • Toyota (TM) predicts its sales this year will grow 5.5% to 2.68 million vehicles, with "a vast majority of the growth" coming from the redesigned full-size Tundra pickup truck.
  • Trustmark (TRMK) reported fourth-quarter net earnings of $29.4 million, or 50 cents a share, up 6% from $27.7 million, or 50 cents a share, during the year-ago period. There were 59.1 million shares outstanding during the compared with 56 million a year ago.
  • TSYS (TSS) said fourth-quarter net earnings rose to $87.1 million, or 44 cents a share, from $49.7 million, or 25 cents a share, in the same period last year, on the back of higher revenue. The company now sees 2007 net income growth falling between 3% and 5% vs. 2006, down from its prior outlook of a 9% to 7% fall.


Market Summary

  • Asian trading closed with the Hang Seng +0.18%, Sensex +0.12%, Taiwan +0.54%, Shanghai -1.49% and Nikkei +0.34%.
  • A quick look across the pond finds the CAC flat, DAX +0.14%, FTSE -0.06%, Swiss Mkt. +0.46% and Stockholm +0.58%.
  • Crude oil is trading -0.25 to 50.96 while gold is -2.9 to 623.0 this morning.
No positions in stocks mentioned.

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