Stocks To Watch: Alcan, Coca-Cola, Disney, General Electric, Jones Soda
Today's big stories and some stocks with potential to move...
Stocks to watch for Tuesday, May 29:
- Advanced Medical Optics (EYE) the maker of ophthalmic-surgery and eye-care products, said it was voluntarily recalling its Complete MoisturePlus contact-lens solutions. The company said it took the action after it received information from the U.S. Centers for Disease Control and Prevention, saying that the product poses to users a higher risk of developing acanthamoeba keratitis, a "rare but serious infection of the cornea."
- Alcan (AL) has not ruled out the option of buying its larger rival, Alcoa, (AA) in what's known as a Pac-Man strategy after the 1980's video game. On May 7, Alcoa launched a $27 billion hostile bid for Alcan, which Alcan's board has rejected. In a Securities and Exchange Commission filing, Alcan said that if Alcoa brought a new proposal "that made sense for our shareholders," the board would consider it "but certainly not under the currently proposed terms and price."
- Coca-Cola (KO) The soft-drink giant agreed to acquire Energy Brands, maker of Vitaminwater, for $4.1 billion cash. And the Sunday Telegraph reported that the company is in talks to buy Highland Spring, the No. 2 U.K. bottled-water brand, in a deal that could be valued at nearly $1 billion.
- Walt Disney (DIS) said late Friday that "Pirates of the Caribbean: At World's End" grossed $58 million worldwide in its first two days of pre-weekend release. The film, which stars Johnny Depp, Orlando Bloom and Keira Knightley, expanded into 102 international markets on Friday. Walt Disney also set June 6 as the record date for the spin-off and merger of its ABC Radio business with a subsidiary of Citadel Broadcasting (CDL)
- eBay (EBAY) agreed with Sanook.com, a Thai Web portal, to form an e-commerce site in Thailand. Sanook.com is a subsidiary of Naspers (NPSN) the Cape Town, South Africa, media company.
- General Electric (GE) and Vivendi SA: NBC Universal is in talks to switch programming chiefs as the network continues its efforts to improve its fourth-place ranking, The New York Times reported. The paper reported that executives informed of the talks said the company, owned 80% by GE and 20% by Vivendi, is discussing severing its ties with Kevin Reilly, its chief programmer and president of its entertainment division.
- GlaxoSmithKline (GSK) is concerned that it might not be able to complete a study of its Avandia diabetes treatment because a number of patients have dropped out, The New York Times reported. The company had been hoping that the study would dispel concern that the drug carries a higher risk of heart attack than rival treatments, the paper reported.
- Integrated BioPharma (INBP) late Friday cuts its fiscal 2007 revenue forecast, citing decreases in consumer-spending forecasts reported in the past two weeks by the major retailers. The chains are the company's Nutraceutical-segment customers. Integrated now expects revenue for the year ending June 30 of $64 million to $66 million, down from its previous forecast of $68 million to $70 million.
- Jones Soda (JSDA) stock tripled from August through mid-April as investors speculated about a strong fourth quarter and a possible takeover and as short sellers covered their positions, Barron's magazine reported. But analysts have been cutting their estimates, and the stock has already lost some of its fizz, the publication reported.
- MedImmune (MEDI) said the Food and Drug Administration completed its review of submissions related to its application to extend the age indication of the flu vaccine FluMist. The biotechnology company said the FDA also acknowledged labeling for the vaccine and post-marketing commitments made by the company. Final action has been reserved until compliance issues at the U.K. plant have been resolved, the company said. MedImmune aims to release the vaccine by the 2007-2008 flu season.
- Nokia (NOK) launched a service Monday that provides English-language lessons to Chinese speakers via their cellphones, reflecting an effort by the cellphone maker to broaden its appeal in the fastest growing major economy, The Wall Street Journal reported.
- Tribune's (TRB) plan to sell Southern Connecticut Newspapers, the Advocate and Greenwich Time to Gannett Co. fell through after an arbitrator ruled last month that Tribune couldn't sell the papers unless the buyer assumed the existing UAW contract, which Gannett refused to do. Tribune intends to solicit new offers for the newspapers.
- Asian trading closed with the Hang Seng -0.29%, Nikkei +0.48%, Sensex +0.77%, Taiwan +0.30% and Shanghai +1.47%.
- A quick look across the pond finds the CAC -0.09%, DAX +0.36%, FTSE +0.35%, ATX -0.11%, Swiss Mkt. +0.19% and Stockholm -0.32%.
- Crude oil is trading to -0.97 to 64.23 while gold is +3.7 to 659.0 this morning.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter