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Stocks To Watch: CDW, Coldwater Creek, IBM, Microsoft, Wal-Mart


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


Stocks to watch for Wednesday, May 30:

  • Biogen Idec (BIIB) said Tuesday that it has authorized a $3 billion share repurchase through a modified "Dutch Auction" tender offer, which will begin Wednesday. The offer is for approximately 57 million shares and represents about 16% of Biogen Idec's currently outstanding common stock.
  • Cantor Fitzgerald plans a $1.3 billion deal to join its eSpeed (ESPD) electronic-trading firm and BGC brokerage unit in a separate company.
  • Technology retailer CDW (CDWC) agreed to be acquired by buyout firm Madison Dearborn for about $7.3 billion, or $87.75 a share.
  • Coldwater Creek's (CWTR) fiscal first-quarter net income rose 4% to $12 million, or 13 cents a share, from $11.6 million, or 12 cents a share, a year earlier. The Sandpoint, Idaho, multi-channel women's apparel and accessories retailers said sales for the quarter ended May 5 rose 31% to $281.3 million from $215.3 million a year ago. In February, the company said it expected first-quarter earnings of 7 cents to 9 cents a share on sales ranging from $260 million to $265 million.expected, on average, earnings of 8 cents a share and revenue of $264.5 million.
  • Donaldson (DCI) reported third-quarter net earnings of $40.1 million, or 49 cents a share, up 8% from $37 million, or 43 cents a share, during the year-ago period. There were 81.8 million shares outstanding during the quarter compared with 85.2 million last year. The provider of filtration systems and replacement parts said that revenue for the three months ended April 30 rose to $484 million from $429.9 million. Analysts, on average, had forecast a per-share profit of 45 cents on revenue of $462 million. Additionally, Donaldson said it expects fiscal 2007 per-share earnings of $1.73 to $1.80.
  • Ford (F) said it isn't in talks with any party to sell Volvo, responding to reports that it had discussions with Germany's BMW about the Swedish unit.
  • Gilead Sciences (GILD) said a Phase III study of aztreonam lysine for inhalation for the treatment of cystic fibrosis met its primary efficacy endpoint. The company said that based on the study, it plans to submit a new drug application concerning the product to the Food and Drug Administration in the second half of 2007. Data from the 164-patient, double-blinded, randomized study demonstrated a significant improvement in health-related quality of life as reported by patients following a 28-day treatment with the drug compared with a placebo
  • International Business Machines (IBM) said it has repurchased $12.5 billion worth of its common stock through accelerated share buyback agreements. IBM said it repurchased 118.8 million shares, or 8% of its outstanding stock, for an initial price of $105.18 each, under the company's $15 billion share repurchase authorization. The shares were acquired from three banks using $1 billion in cash and $11.5 billion borrowed through a loan agreement with a number of financial institutions, the company said. IBM also said it expects 2007 earnings per share growth of 13% to 14%, up from its previous estimate of 11%. The new forecast reflects the benefit of two to three points of growth, or roughly 14 cents to 17 cents of a share, from the accelerated share repurchases.
  • Kona Grill (KONA) lowered its fiscal 2007 revenue guidance to $72 million to $73.5 million from $73 million to $75 million. The company said it's unlikely it will open new restaurants at its Gilbert and West Palm Beach locations before year-end and therefore updated its revenue guidance. The company said its loss guidance of 8 cents to 29 cents a share remains unchanged. Kona Grill continues to expect second-quarter revenue of $18.1 million to $18.6 million and a loss ranging from 5 cents a share to net income of 2 cents a share.
  • Microsoft (MSFT) will unveil a computer designed like a table with a touch-screen. The system, which goes on sale later this year, will be aimed initially for use in hotels and casinos.
  • Neurogen (NRGN) said it has filed a $100 million universal shelf registration statement with the Securities and Exchange Commission, allowing the company to sell debt securities, stock and warrants. Neurogen, a drug discovery and development company, expects to use the proceeds from any sale for general corporate purposes.
  • Phillips-Van Heusen's (PVH) first-quarter net income rose 8.7% to $53 million, or 92 cents a share, from $48.7 million, or 87 cents a share, a year earlier. Excluding items, the year-ago quarter's net income was $41.6 million, or 74 cents a share. The New York clothing manufacturer said revenue for the quarter ended May 6 rose 17% to $591.9 million from $506.4 million a year ago. For the second quarter, Phillips-Van Heusen expects earnings of 61 cents a share on revenue of $545 million.
  • Smithfield Foods (SFD) predicts fourth-quarter income from continuing operations of 30 cents to 35 cents a share. The processor of pork and processed meats said the forecast reflects increased costs in its hog production operations and losses in its cattle feeding business. Smithfield also expects impairment charges on certain facilities to be recognized during the quarter.
  • A Wal-Mart (WMT) vendor said the retailer's chief executive, H. Lee Scott, purchased a diamond ring from the vendor in 2003. Scott recently was accused by a fired marketing executive of accepting sweetheart deals from suppliers.

Market Update:

  • Asian trading closed with the Hang Seng -0.86%, Nikkei -0.48%, Sensex -0.67%, Taiwan -0.42% and Shanghai -6.50%.
  • A quick look across the pond finds the CAC -1.04%, DAX -1.12%, FTSE -0.96%, ATX -1.81%, Swiss Mkt. -0.84% and Stockholm -1.03%.
  • Crude oil is trading to +0.18 to 63.33 while gold is -2.2 to 661.2 this morning.
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No positions in stocks mentioned.

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