Stocks to Watch: Boston Scientific, Citigroup, Continental, Dell, Freddie Mac, Gap, General Motors, IBM
In for the long haul
Stock to Watch for Wednesday, June 7
- Affiliated Computer Services (ACS) said the Anchorage Police & Fire Retirement System has filed a shareholder derivative lawsuit naming the company as a nominal defendant, according to a filing with the Securities and Exchange Commission late Tuesday.
- ADC Telecommunications (ADCT) notified the Securities and Exchange Commission that it sees eventual synergies of additional pretax earnings ranging from $70 million to $80 million in connection with its proposed $2 billion acquisition of Andrew Corporation (ANDW).
Boston Scientific (BSX) said it has priced a public offering of $1.2 billion of its senior notes.
- Citigroup (C) plans to rapidly expand its branch system in Russia, though analysts caution that the financial-services giant will face a number of challenges.
- Cooper Companies (COO) earned $13.7 million, or 30 cents share in its fiscal second quarter, less than half the $27.8 million or 59 cents of the year-ago period.
- Continental (CAL) ordered 34 new jetliners valued at $3 billion from Boeing, a significant move when most other traditional carriers have slowed or halted orders.
- Crane Co. (CR) said it has agreed to buy certain assets of Automatic Products international ltd., a privately held manufacturer of vending equipment, for $31 million.
- Dell (DELL) is overhauling its line of server systems and has recruited Google as a high-profile reseller of the computers saying it will provide the servers that Google (GOOG) will use in the newest version of its Search Appliance product.
- Discovery Laboratories (DSCO) said it has withdrawn its application for European approval of Surfaxin, a treatment of respiratory distress syndrome in premature infants.
- Federated (FD) will restate cash flows for last year, after reclassifying proceeds from its sale of credit-card accounts to Citibank.
- Freddie Mac (FRE) may face limits on its holdings of mortgage loans and related securities.
- Gap (GAP) unveiled a plan to reorganize its stores with four sections -- denim, activewear, basics and T-shirts -- and update its fashions more often.
- General Motors (GM) investors signaled their displeasure with the auto maker by approving two nonbinding proposals management had opposed. CEO Wagoner told shareholders the company is making progress.
- Hewlett-Packard (HPQ) revised its second-quarter profit up by $443 million to $1.9 billion to reflect a settlement with the IRS. The company also said it is buying Silverwire, a provider of imaging software.
- IBM plans to triple its investment in India to almost $6 billion in the next three years, expanding its already large footprint there.
- La-Z-Boy (LZB) said a writedown related to consolidation of its upholstery operations and restructuring charges ended with the company reporting a fourth-quarter loss.
Liberty Global (LBTYA) announced the company got regulatory approval to sell French ops for $1.6bln and Swedish unit for $149mln.
- Lightbridge (LTBG) said it has agreed to renew its contract with Alltel Corporation (AT) . The new agreement extends Alltel's use of Lightbridge's credit- and risk-evaluation products and service until August 2008.
- Martek Biosciences (MATK) reported a near doubling in income and a 26% jump in sales thanks to improved sales to its infant formula customers and increased productivity. The company said net income was $6.3 million, or 19 cents a share, on sales of $70.2 million.
- Mittal Steel's (MT) finance chief said the steel company is evaluating its role in iron ore purchasing and, next year, would have to decide if it will take a primary or secondary role.
- Northwest Airlines (NWACQ) expressed its disappointment with a flight attendants union's 80% vote against the bankrupt airline's cost-cutting contract. Northwest said it is filing a motion asking for a preliminary injunction to prevent a threatened strike by the union.
- Nucor (NUE) said it is doubling its supplemental dividend, raising it to 50 cents a share from 25 cents a share. The move brings the total quarterly cash dividend to 60 cents a share.
- Target (TGT) raised its gross-margin-rate forecast, just weeks after disappointing first-quarter results sent its shares tumbling.
- URS Corporation (URS) said it has won a 4-year contract with a maximum value of $19 million from the Washington State Department of Transportation.
- Veritas DGC (VTS) , citing sharply higher demand for the geophysical services it provides to the petroleum exploration business, reported fiscal third-quarter 2006 net earnings of $32.9 million, or 84 cents a share, compared with $18.4 million, or 52 cents, a year ago.
- Wet Seal (WTSLA) said it has named President and Chief Executive Joel Waller as chairman of the board.
- Asian trading closed in the red with Hang Seng -0.98%, the Nikkei falling -1.88% and the Sensex down -2.01%
- A quick check across the pond finds the CAC +0.34%, DAX +0.71% and FTSE +.039%.
- Crude oil is trading lower -0.56 to 71.94 while gold is also down -12.00 to 622.5.
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