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Stocks to Watch: GE, GM, Honda, Marvell, Morgan Stanley, Nike, Nortel


Free falling


Stocks to watch for Wednesday, June 28

  • Apogee Enterprises (APOG) said higher revenue helped boost first-quarter net earnings to $4.74 million, or 17 cents a share, from $3.94 million, or 14 cents a share, during the same period in the prior year.
  • Applied Micro Circuits (AMCC) said it has received a subpoena from the U.S. Attorney for the Northern District of California requesting documents relating to the company's stock-option practices.
  • AT&T's (T) subsidiary AT&T Communications- East Inc. has agreed to pay the government $2.9 million to settle claims that it defrauded the General Services Administration from 1998 to 2001. The civil settlement resolves allegations that the company defrauded the United States by knowingly passing through to government customers costs and fees it should have paid.
  • Bassett Furniture Industries (BSET) reported second-quarter earnings of $2.9 million or 24 cents a share, compared with $1.04 million, or 9 cents a share, in the same period last year, as sales increased and costs dropped.
  • BB&T (BBT) said it has approved the buyback of up to 50 million of its shares.
  • Cheesecake Factory (CAKE) said it expects second-quarter same-restaurant sales to be flat to slightly negative, in light of the macro trend impacting the restaurant industry.
  • Citizens Banking agreed to buy Republic Bancorp for about $1.05 billion in cash and stock to form a new Midwestern regional bank
  • CNet Networks (CNET) said it has received a grand jury document subpoena from the U.S. Attorney for the Northern District of California requesting records relating to the granting of stock options.
  • Coldwater Creek (CWTR) said the Nasdaq has indicated that Coldwater's filing delinquency for the April quarter has been cured. Last week, the clothing company filed a Form 10-Q/A with the Securities and Exchange Commission, curing the delinquency.
  • Exfo Electro-Optical Engineering (EXFO) said higher sales helped boost third-quarter net income to $3.5 million, or 5 cents a share, from $300,000, or breakeven on a per-share basis, during the same period in the prior year.
  • General Electric (GE) Consumer Finance agreed to sell its consumer-finance business to Hyundai Capital Services, in a move underscoring the difficulties faced by foreign companies operating in South Korea's competitive retail market.
  • General Motors (GM) expects to report slumping June and July sales amid tough competition and efforts to wean itself from price wars that have hurt auto-industry profits. GM plans to offer 0% financing on many of its vehicles to clear inventory ahead of its new model year, heating up the incentive war between domestic auto makers.
  • H.B. Fuller (FUL) reported second-quarter net earnings of $19.5 million, or 65 cents a share, up 21% from $16.2 million, or 56 cents a share, during the year-ago period. The St. Paul, Minn.-based chemical products company posted revenue of $388.5 million vs. $387.9 million.
  • Hexcel (HXL) said it sees a "likely" reduction in expected growth for commercial aerospace revenue during the second half of 2006 and the first half of 2007. The structural materials company's outlook change follows EADS' Airbus' view that deliveries of certain aircraft would be delayed, particularly in 2007.
  • Honda (HMC) has picked an Indiana town to build a $400 million passenger-car plant, its sixth assembly factory in North America, in a move that highlights the ambitious growth strategies of Asia-based auto makers.
  • Marvell (MRVL) agreed to buy Intel's mobile-communications chip business for $600 million.
  • Minerals Technologies (MTX) forecast lower-than-expected second-quarter results. The New York-based minerals company cited slower-than-expected project ramp-ups, delays in equipment installations, higher energy and raw material costs, and an
  • McClatchy (MNI) completed acquiring Knight Ridder (KRI) in a $6.5 billion deal. Knight Ridder shares, which were converted into the right to receive $40 in cash and a fraction of a McClatchy share, will no longer be traded.
  • Morgan Stanley (MS) will pay $10 million to settle SEC allegations of a breakdown in systems to prevent misuse of inside information.
  • Nike (NKE) in its fiscal-fourth-quarter earned $332.8 million, or $1.27 a share -- down from $349.5 million, or $1.30 a share, in the year-ago quarter. Nike's profit fell 4.8%, hurt by rising transportation costs and a charge related to a contract dispute involving its Converse unit.
  • Nortel (NTL) outlined a restructuring plan that calls for cutting about 1,100 positions globally and significant changes to its pension programs to save money.
    The Food and Drug Administration has approved Novartis AG's (NVS) drug Exelon for the treatment of mild to moderate dementia associated with Parkinson's disease.
  • Oracle (ORCL) CEO Larry Ellison has decided not to donate $115 million to fund a new health institute at Harvard University.
  • Pliva accepted a $2.2 billion takeover offer by Barr Pharmaceuticals, ending weeks of speculation over who would triumph in a bidding war for the Croatian generic-drug maker.
  • UPS reached a deal with the U.S. Postal Service that will put mail on planes of the package-delivery firm and could improve the post office's reliability.
  • Vector Group (VGR) said it plans to offer $85 million of senior convertible debentures due 2026 in a private placement. The debentures will be convertible into Vector common stock at the holder's option at a price to be determined, the Miami-based tobacco holding company said.
  • Wells Fargo & Co. (WFC) said it has approved increasing its quarterly cash dividend 7.7% to 56 cents a share from 52 cents a share. The company also approved a 2-for-1 stock split on its common stock in the form of a 100% stock dividend.

Market Update

  • Asian trading closed with the Hang Seng -0.20%, Nikkei -1.88% and the Sensex -0.21.
  • A quick check across the pond finds the CAC -0.07%, DAX -0.22% and the FTSE +0.17% .
  • Crude oil is trading +0.21 72.13 while gold is +1.90 to 586.3 so far today. For their part, stateside futes are above fair value.
No positions in stocks mentioned.

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