Tuesday, March 20, 2007

Tuesday Stocks to Watch

The market is marching higher again today. It is off the high of the day after the oil service company (HAL) warns profit is lower than expected around midday. Nasdaq volume is on-track to be lower than typical days. Another unconfirmed rally indication. I would still wait for the market to tell me if I should get back in again.
Here is the movers and shakers from MarketWatch for us to keep track when the bull is back:
Advancers

3Sbio Inc. (SSRX) was initiated with a buy rating at Pacific Growth Equities.

Accredited Home Lenders (LEND) said it received a $200 million term loan from Farallon Capital Management. In exchange, the San Diego mortgage company said it would issue to Farallon 3.3 million warrants to buy shares at $10 each, and will also be given the right to buy additional shares. Accredited Home Lenders will use the proceeds of the loan for funding mortgage loans and for general working capital. See full story.

A.D.A.M. Inc. (ADAM) reported fourth-quarter earnings of $383,000, or 4 cents a share, up from a year-ago loss of $505,000, or 6 cents a share. Revenue rose 173% in the latest three months to $6.8 million from $2.5 million a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 3 cents a share in the December period from the Atlanta-based provider of health information services.

Affiliated Computer Services' (ACS) chairman and a private-equity firm on Tuesday said they offered nearly $6 billion in cash to take the company private, the latest in a string of tech-firm buyout offers.. See full story.

Allos Therapeutics Inc. (ALTH) named Pablo Cagnoni senior vice president and chief medical officer.

Alon USA Energy (ALJ) was upgraded to above average from average at Caris & Co.

AMR Corp.'s (AMR) American Airlines forecast higher costs for its first quarter, blaming weather-related flight cancellations that cut 2.5% of the carrier's departures from the period Jan. 1 through March 18. The airline said in a federal filing its total cost per available seat mile excluding fuel, or unit costs, would rise to 8.42 cents in the quarter. AMR is expecting jet fuel price of $1.84 a gallon in the quarter and $1.98 a gallon for the year. American Airlines also said its traffic and capacity dipped more than 10% each in February from January.

Braskem SA (BAK) was upgraded to outperform from peer perform at Bear Stearns.

Carrizo Oil & Gas Inc. (CRZO) reported fourth-quarter net income of $4.3 million, or 16 cents a share, down from $13.5 million, or 54 cents, earned in the final three months of 2005. On an adjusted basis, the Houston-based company would have earned 18 cents a share in the latest quarter. Analysts were looking for earnings of 14 cents a share, according to estimates compiled by Thomson Financial. Quarterly revenue slipped to $24.2 million from the prior year's $28.1 million. Production volumes were up 34% from the 2005 fourth quarter, the company said.

Cleveland BioLabs (CBLI) received a contract from the Department of Defense to fund "development leading to the acquisition" of the company's lead radiation countermeasure compound Protectan CBLB502. The company is developing the compound in collaboration with the Armed Forces Radiobiology Research Institute.

El Paso Corp. (EP) was upgraded to outperform from neutral at Credit Suisse.

Equitable Resources (EQT) was upgraded to outperform from neutral at Credit Suisse.

Eschelon Telecom Inc. (ESCH) agreed to be acquired by private communications provider Integra Telecom for about $566 million. The deal values Eschelon shares at $30 each, compared to Monday's close at $25.59. "This transaction provides significant benefits for Eschelon's shareholders - the $30.00 share price represents a 58% premium to our price 90 days ago and it represents a 109% improvement over our price of just one year ago," said Richard Smith, Eschelon's CEO. Integra is based in Portland, Ore., while Eschelon is headquartered in Minneapolis.

Exide Technologies (XIDE) shares rose after the Alpharetta, Ga.-based company announced a new battery supply agreement with Toyota Motor Engineering & Manufacturing North America . Exide said it has begun shipping lead-acid starting batteries for the next-generation of Toyota Tundra trucks assembled at Toyota's facility in San Antonio. Financial terms of the supply contract were not disclosed. Exide currently supplies Toyota with batteries for its North American-produced Camry and Avalon cars, Tundra trucks and Sequoia sport-utility vehicles.

Gilead Sciences (GILD) was upgraded to buy from neutral at Merrill Lynch. The firm cited improved prospects for long-term growth from the company's HIV franchise. The broker also told clients it believes the 2007 and 2008 launches of its cystic fibrosis and pulmonary arterial hypertension drugs could surprise to the upside. Merrill said it expects the approval of Ambrisentan for pulmonary arterial hypertension by mid 2007 and the launch of Aztreonam for cystic fibrosis in mid 2008.

Hirsch International Corp. (HRSH) shares leapt after the Hauppage, N.Y.-based provider of commercial embroidery systems reported a fourth-quarter net profit of $35,000, or a penny a share, compared with a net loss of $291,000, or 2 cents a share, in the year-ago period. Revenue rose to $15.2 million from $12 million.

InterContinentalExchange Inc. said it was "pleased" that CBOT Holdings Inc. , the parent of the Chicago Board of Trade, has authorized talks with ICE regarding the merger offer it made last week. "We are pleased that the CBOT board has determined that ICE's proposal is or could reasonably be expected to lead to a superior proposal, which enables CBOT to begin discussions and exchange information with us," said ICE Chief Executive Jeffrey Sprecher in a statement. "As we previously said, we are confident we can complete our review and be in a position to execute a definitive agreement within a week."

Juniper Networks (JNPR) was upgraded to overweight to equal-weight at Morgan Stanley.

Lumera Corp. (LMRA) received an extension of its contract to develop advanced wideband optical modulators for the U.S. government. The company said the 12-month pact is worth $1.15 million, bringing the total contract value to about $$6.9 million.

Navistar International Corp. (NAVZ) said its total first quarter worldwide shipments were flat and its Class 6-8 commercial truck and school bus shipments in the United States and Canada grew 6%. Warrenville, Ill.-based Navistar left unchanged its forecast of industry volume for the U.S. and Canada for medium and heavy trucks and school buses of 325,000 to 347,000 units, a decline of 24% to 28% from 2006.

NovAtel Inc. (NGPS) said it doesn't expect the proposed merger of Topcon Corp. and Sokkia Co. to affect its existing business relationship with Sokkia for the "foreseeable future."

NVE Corp. (NVEC) said it's learned of the expected grant of a patent related to vertical transport magnetoresistive random access memory, or VRAM, from the U.S. Patent and Trademark Office.

Shares of Palm Inc. (PALM) rose after reports that the company may be near a buyout deal. An article on the Website Unstrung.com cited anonymous sources as saying that the company is working to finalize a deal before it reports its third fiscal quarter results after Thursday's closing bell. The stock, which was last trading up 81 cents at $18.95, had already gained nearly 30% since late January on rumors of a possible takeover.

Progress Software Corp.'s (PRGS) fiscal first-quarter earnings rose 48% to $8.74 million, or 20 cents a share, from $5.91 million, or 14 cents a share, a year earlier, as revenue grew 11%. Excluding items such as stock-based compensation, excise-tax reimbursements, amortization and the cost of an options investigation, non-GAAP net income rose 25% to $16.2 million, or 37 cents a share, from $12.9 million, or 30 cents a share, a year earlier. The Bedford, Mass., software maker said Tuesday that revenue for the quarter ended Feb. 28 climbed to $115.2 million from $103.9 million.

Rambus Inc. said the Federal Trade Commission has stayed portions of its remedy order, clarifying that the company isn't restricted from collecting royalties for the use of some of its technologies in the past. In its order, the FTC also said that Rambus isn't required to refund royalties already paid. In early February, the FTC ordered Rambus to license some of its computer memory-chip technology and set maximum royalty rates it can collect for licensing. The memory chip technologies include so-called SDRAM and DDR SDRAM.

Republic Airways Holdings Inc. said it has agreed to acquire 2 million of its common shares from WexAir LLC, its former majority shareholder. Under the agreement, the Indianapolis-based carrier will purchase the stock for $20.50 a share, for a total consideration of $41 million.

SanDisk Corp. (SNDK) was upgraded to sector outperformer from sector performer at CIBC World Markets.

SBA Communications Corp. (SBAC) plans to offer $300 million of three-year convertible senior notes, the owner and operator of wireless communications tower and infrastructure said. A portion of the net proceeds will be earmarked for the purchase up to $125 million of SBA's Class A common shares via privately negotiated transactions. In addition, the Boca Raton, Fla.-based company will use some proceeds to buy convertible note hedge transactions with affiliates of one or more of the initial purchasers of the notes. SBA also intends to pursue transactions with these parties to sell warrants for Class A common stock at an anticipated initial exercise price of $55 a share. Moreover, SBA said expects to grant the initial purchasers an option to purchase up to $50 million of additional notes if demand warrants.

Silicon Motion Technology Corp. (SIMO) said its first-quarter sales will decline less than it previously expected, partly a result of China becoming a "strong" end market for secure digital and micro secure digital controllers. The Taipei semiconductor company said Tuesday it expects first-quarter sales to decrease 3% to 7% from the fourth quarter, to a range of $33.1 million to $34.5 million. It previously expected a sequential decline of 15% to 20%. For the first quarter of 2006, Silicon Motion generated sales of $17.5 million. Silicon Motion said its revised guidance is also a result of the company's broader product offering and Samsung beginning volume production of flash memory cards with Silicon Motion's controllers.

STEC Inc. (STEC) named Mark Moshayedi to the additional post of president. Moshayedi will retain the chief technical officer and chief operating officer posts.

Taleo Corp. (TLEO) named Eric Herr chairman, succeeding company co-founder Louis Tetu. Herr previously served as chairman of the company's audit committee.

Titanium Metals (TIE) was initiated with a buy rating at Banc of America Securities. The firm set a $41 price target. (A previous version of this item incorrectly stated Banc of America initiated coverage of the company with a neutral rating.)

Valspar (VAL) was upgraded to buy from neutral at Deutsche Bank.

Verso Technologies (VRSO) shares rallied after the company forecast first-quarter revenue of at least $12 million, and second-quarter revenue of $14 million to $15 million. The company also sees full-year 2007 revenue of between $60 million and $70 million, and positive EBITDA, excluding non-cash items and acquisition related costs and expenses.

Decliners

3D Systems Corp. expects to record fourth-quarter revenue of $42 million to $44 million, but said its complete results will be delayed past Friday's filing deadline. The Rock Hills, S.C., three-dimensional modeling, prototyping and manufacturing company said it was delayed in completing fourth-quarter results while it worked on restating third-quarter results, filed Feb. 2. The company expects fourth-quarter gross profit of $16 million to $17 million and operating expenses of $19 million to $21 million.

Accuray Inc. (ARAY) was initiated with a buy rating at Jefferies & Co. The firm set a price target at $29.

Atherogenics Inc. (AGIX) shares continued to stumble Tuesday. The company's stock fell more than 60% Monday after Atherogenics said a Phase III clinical trial for its AGI-1067 candidate had failed to show it was significantly effective in treating acute coronary syndrome, a form of heart disease.

Blockbuster Inc. (BBI) Chairman John Antioco will step down from the company by the end of 2007, and he has settled a dispute with billionaire investor Carl Icahn and the company's board of directors over his 2006 bonus.. See full story.

Boardwalk Pipeline Partners LP said it has priced a public offering of 7.5 million common units representing limited partner interests. Boardwalk said it plans to use the net proceeds of the offering to fund a portion of the cost of its expansion projects and for general partnership purposes.

Camtek Ltd. (CAMT) shares slumped after the Israel-based maker of optical inspection systems reported that it swung to a fourth-quarter net loss of $2.22 million, or 7 cents a share, from a net profit of $2.06 million, or 7 cents a share, in the year-ago period. Revenue climbed to $21 million from $19.4 million. Camtek forecast first-quarter revenue of $16 million to $18 million and said it expects increased demand in the second quarter.

Delta Air Lines (DALRQ) said it will give its 39,000 non-contract employees $350 million in stock and $130 million in cash after it emerges from bankruptcy, which is planned in May. They'll also get pay increases beginning this summer, incentive performance awards and profit sharing, and a new defined contribution retirement benefit, the Atlanta airline said. Equity awards to Delta's 1,200 management staff will represent about 2.4% of Delta's stock value, or $240 million. CEO Gerald Grinstein won't be part of the executive pay plan, the airline added.

Halliburton Co. (HAL) shares slumped after the company said it expects first-quarter earnings to be below analysts' consensus estimates. Halliburton forecast earnings of 49 cents to 54 cents a share. Analysts polled by Thomson Financial are, on average, expecting a per-share profit of 59 cents. The company said the production optimization and fluid systems divisions of its energy services group have experienced reduced activity in North America.

Hancock Fabrics (HKF) said it plans to close 104 stores, representing about $75 million in annualized sales, and is exploring strategic alternatives to maximize shareholder value. The closures are in addition to the Feb. 8 announcement of the shuttering of 30 stores, the Baldwyn, Miss.-based company said. Hancock said it expects to post charges related to the closures, but cannot estimate the amount of the losses at this time. Additionally, the company said it has received a notice of default from its bank group due to the previously reported delay in filing its quarterly financial statements for 2006, and due to its inability to comply with a financial covenant in the bank credit facility that requires it to have at least $25 million of excess availability.

Intertape Polymer Group, Inc. (ITP), the Montreal-based maker of plastic- and paper-based-packaging products and systems for industry and retail, said it swung to a fourth-quarter net loss of $15.2 million, or 37 cents a share, compared to a net profit of $9.7 million, or 24 cents a share, a year earlier. Excluding a one-time tax expense of $4.8 million, the adjusted loss came in at $8.5 million, or 21 cents a share, compared to an adjusted profit of $9.2 million, or 22 cents a share, in the year-ago period. Sales slipped 13% to $187.4 million. The company said first-quarter sales volume levels of its tapes and film products are expected to be similar to those of the third and fourth quarters of 2006. In the first quarter, the company said it sees plant utilization more closely aligned with sales demand resulting in better absorption of fixed costs in this period.

Martin Midstream Partners (MMLP) was downgraded to sector perform from outperform at RBC Capital Markets.

Medimmune (MEDI) was downgraded to peer perform from outperform at Bear Stearns.

National CineMedia Inc. swung to a fiscal fourth-quarter profit of $700,000 from a year-ago loss of $3 million on higher revenue. Pro forma earnings were $6.9 million, or 16 cents a share. Revenue for the quarter ended Dec. 28 rose to $74.1 million from $44.6 million. The stock was also initiated with a neutral rating by Merrill Lynch.

Omnova Solutions Inc.'s fiscal first-quarter loss widened to $5.1 million, or 12 cents a share, from $4.3 million, or 10 cents a share, a year earlier, as revenue fell 2.9%. The Fairlawn, Ohio, building materials manufacturer's revenue for the quarter ended Feb. 28 dropped to $164.8 million from $169.8 million in the year-ago period.

Oneok (OKE) was downgraded to neutral from outperform at Credit Suisse.

Pioneer Cos. (PXD) shares sank after the Houston-based chemical company said it plans to offer $100 million of convertible senior subordinated notes due 2027 to institutional buyers. As part of the offering, Pioneer expects to grant the initial buyer an option to purchase up to an additional $20 million of notes. Pioneer plans to use the proceeds to redeem the $75 million outstanding balance of its 10% senior secured notes due 2008, and also to help finance capital costs for the expansion of its St. Gabriel, La., plant.

ProLogis plans to offer a $1 billion aggregate principal amount of senior notes due 2037. The Denver distribution-facilities company said an additional $150 million aggregate principal amount of notes may be issued.

Public Storage Inc. (PSA) was downgraded to equal-weight from overweight at Morgan Stanley.

Saifun Semiconductors Ltd. (SFUN) was downgraded to sector performer from sector outperformer at CIBC World Markets.

Superior Industries International Inc. (SUP) reported a fourth-quarter loss of $4.8 million, or 18 cents a share, narrower than a year-ago loss of $19.9 million, or 75 cents a share. On a continuing operations basis, the company lost $4.4 million, or 17 cents a share, in the latest quarter. The Van Nuys, Calif., maker of aluminum wheels recorded start-up costs of $3.3 million and restructuring expenses of $964,000 in the latest quarter. Revenue rose 3% in the latest three months to $212.2 million from $205.9 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a loss of 4 cents a share in the December period.

Systemax reported that fourth-quarter net earnings more than doubled, rising to $8.03 million, or 22 cents a share, from $3.41 million, or 9 cents a share, in the year-ago period. Revenue at the Port Washington, N.Y.-based seller of computers and accessories rose 11% to $648 million from $583 million, while gross margin slipped to 12.9% from 14.7% in the fourth quarter of 2005.

Take-Two Interactive (TTWO) was downgraded to sell from hold at Kaufman Bros., citing valuation.

Tecumseh Products Co. plans to delay reporting its 2006 fourth quarter and annual results because it needs additional time to close its books. The company, which makes components for industrial equipment, previously said it was pursuing a remedy available to it under Brazilian law that would "require its lenders for its Brazilian engine manufacturing facility to abide by the terms of a proposed restructuring agreement."

ViroPharma (VPHM) shares fell after the Exton, Pa.-based drug development company said it plans to offer $200 million of convertible senior notes due March 2017. The company expects to grant the underwriters an option to purchase up to an additional $30 million of notes to cover over-allotments. ViroPharma plans to use the proceeds for general corporate purposes.

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