Stocks to Watch: Citi Bails Out SIVs, JetBlue Sells Out
Friday's top stories and stocks with potential to move...
- Citigroup (C) will bail out 7 structured-investment vehicles (SIVs) and bring $49 bln in assets onto its balance sheet. The move comes as speculation mounts that the SIV bailout fund being orchestrated by the U.S. Treasury and large domestic banks may fall apart. (WSJ)
- JetBlue (JBLU) announced that Germany's Lufthansa AG will buy a 19% stake in the company as consolidation continues in the airline space. Shares jumped 14% in trading Thursday.
- Novell (NOVL) released 4Q '07 earnings after the bell Thursday and said it swung to a loss of $17.9 mln or 5 cents a share, compared to earnings of $19.9 mln or 5 cents a share a year ago. Revenue came in higher than analysts expected at $244.9 mln vs. $242.2 mln cons.
- Lattice Semiconductor Corp (LSCC), the maker of programmable gate array and logic devices, lowered its 4Q '07 revenue forecasts from $57 mln-$59 mln to $53 mln-$54 mln. Analysts had predicted 4Q '07 revenue of $58.1 mln. The company expects weaker turn orders in Asia and lower resale trends in North American and Europe.
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- Quicksilver Inc (ZQK) said it swung to a 4Q '07 loss of $110.9 mln or 89 cents a share, after posting a profit a year ago of $65.3 mln or 51 cents a share. The loss is partly attributed a a goodwill charge of $170.7 mln. Revenue rose 65% to $779.2 mln from a year ago, and the company expects revenues of $2.7 bln from FY '08 and a profit of 70 cents per share.
- Neurocrine Biosciences (NBIX) responded to setbacks in indiplon - a sleep aid - by cutting the workforce at its San Diego campus by 130 employees, or more than half its work force. The company is planning to request a formal meeting with the Food and Drug Administration over the 2007 approvable letter.
- Ryder Systems (R) announced two rounds of share buybacks totaling up to $400 mln, or 14.5% of its outstanding shares. The plan is aimed in part to reduce the dilutive effect of shares issued under the company's employee stock option and employee stock purchase plans.
- Trinity Industries (TRN), the diversified industrial firm located in Dallas, TX, will repurchase up to $200 mln of its common stock through Dec. 31, 2009. The company also declared a dividend of 7 cents a share on its common stock.
- Arthrocare (ARTC) announced its board approved a stock repurchase program of up to $75 mln, the bulk of which will be completed by March 31, 2008. The company reiterated 4Q '07 earnings estimate of 48 to 50 cents a share on a revenue increase of more than 20%.
- Microsoft (MSFT) shares rose 2% Thursday after JP Morgan (JPM) increased its FY '08 profit estimates for the company. The JPM analyst expressed optimism about MSFT's organic growth opportunities and believes the IT environment will be more favorable than most expect in 4Q '07 and into 2008.
- Asian trading closed with the Hang Seng -0.65%, Nikkei -0.14%, Sensex -0.37%, Taiwan -0.85% and Shanghai +1.01%.
- A quick look across the pond finds the CAC +0.01%, DAX -0.50%, FTSE -+0.23%, ATX +0.47%, Swiss Mkt. -0.08% and Stockholm -0.14%.
- Crude oil is trading higher +0.14 to 92.60 while gold is lower -8.0 to 796.0 this morning.
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