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Stocks To Watch: Adobe, Atari, Freddie Mac, Midwest Air, Smith & Wesson


Today's big stories and some stocks with potential to move...


Stocks to watch for Friday, June 15:

  • Adobe (ADBE) said profit and sales rose during its second quarter, due to strong results for products including its recently launched Creative Suite 3.
  • Atari (ATAR) delayed filing its report for the year ended March 31 in order to provide time to determine the amount of a fourth-quarter goodwill impairment charge. The interactive entertainment company expects the charge to equate or consist of a substantial portion of the $54.1 million of goodwill that was recorded before the impairment. The charge was the result of a significant decline in Atari's market capitalization, the company said. Excluding the charge, the loss for the year was about $17.2 million, or $1.28 a share.
  • Build-A-Bear Workshop (BBW) cut its second-quarter earnings forecast to 7 cents to 10 cents a share, from its previous prediction of 15 cents to 19 cents a share. Wall Street expected second-quarter earnings of 19 cents a share, according to the average estimate of analysts polled by Thomson Financial. The retailer lowered its outlook based on sales results for the 10-week period ended June 9 as well as same-store sales declines of 7% to 9%. The previous forecast assumed same-store sales would be flat to the negative low-single digit range.
  • Cenveo (CVO) said it has agreed to acquire Madison/Graham ColorGraphics, a printer with roughly 400 employees and $170 million in revenue. Financial terms of the deal were not disclosed. Cenveo expects the transaction to close in July and add to its earnings.
  • Cleveland-Cliffs (CLF) said it has agreed to acquire PinnOak Resources LLC for $450 million in cash plus roughly $150 million in debt. Cleveland-Cliffs expects the deal to increase its 2008 revenue by $400 million and add $100 million to its earnings before interest, taxes, depreciation and amortization.
  • Cost Plus (CPWM) revised its fiscal first-quarter loss to $11.1 million, or 50 cents a share, from a preliminary estimate of $12 million, or 54 cents a share. The retailer said it hadn't finished analyzing certain tax depreciation methods on the report for the quarter ended May 5 when it released its preliminary numbers. Cost Plus reported a fiscal first-quarter 2006 loss of $3.54 million, or 16 cents a share.
  • Freddie Mac (FRE) swung to a $211 million loss, reflecting mortgage-market turmoil and the impact of new accounting practices.
  • Furniture Brands International (FBN) named Ralph Scozzafava as vice chairman and chief executive designate. The company said current Chairman and Chief Executive W.G. (Mickey) Holliman plans to retire as CEO on January 1, 2008, and will remain chairman until May 1, 2008.
  • Hawkins (HWKN) reported fiscal fourth-quarter net earnings of $1.81 million, or 18 cents a share, up 38% from $1.31 million, or 13 cents a share, in the year-ago period. For the quarter ended April 1, the provider of bulk industrial products reported revenue of $39.7 million, up 8.8% from $36.5 million in the comparable period a year ago.
  • Lattice Semiconductor (LSCC) confirmed it expects second-quarter revenue to be flat to up 4% compared with its first-quarter revenue of $58.1 million. On average, analysts expect revenue of $59.5 million, according to a poll by Thomson Financial.
  • Midwest Air (MEH) shareholders elected three directors backed by AirTran, showing their support for AirTran's $389 million bid.
  • Smith & Wesson (SWHC) said fiscal fourth-quarter net income rose 24% to $5.2 million, or 12 cents a share, from $4.2 million, or 11 cents a share, a year earlier. Sales for the quarter ended April 30 climbed 59% to $82.6 million from $51.9 million.
  • Stratos International (STLW) swung to earnings of $604,000, or 4 cents a share, for the fourth quarter ended April 30, from a loss of $418,000, or 9 cents a share. Both per-share figures are after preferred dividends. Revenue for the networking accessory manufacturer rose 26% to $26 million from $20.7 million in the year-ago period.
  • Terremark Worldwide's (TMRK) fiscal fourth-quarter loss narrowed to $4.26 million, or 10 cents a share, from $21.8 million, or 50 cents a share, a year earlier. Revenue for the quarter ended March 31 jumped 61% to $30.7 million from $19 million as the company added 33 new customers. Analysts polled by Thomson Financial expected, on average, a loss of 9 cents a share on revenue of $30 million.

Market Update:

  • Asian trading closed with the Hang Seng +0.72%, Nikkei +0.72%, Sensex -0.33%, Taiwan +1.45% and Shanghai +0.43%.
  • A quick check across the pond finds the CAC +0.42%, DAX +0.70%, FTSE +0.61%, ATX +0.80%, Swiss Mkt. +0.77% and Stockholm +0.05%.
  • Crude oil is trading lower -0.26 to 67.39 and gold is also down -2.0 to 653.9 this morning.
No positions in stocks mentioned.

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