Thursday Stocks to Watch

The market came back from the early morning's deficit and marched into positive territory around noon time. Here are the stocks worth watching:

Thursday's biggest stock gainers and decliners

By Michael Baron
Apr 12, 2007 11:34:00 (ET)

Abercrombie & Fitch Co. (ANF, Trade ) said same-store sales in March rose 7% for the five-week period ended April 7. The average estimate of analysts polled by Thomson Financial was for an increase of 2.4% for the month. The New Albany, Ohio, specialty retailer said sales rose 29% on the five-week period to $331.2 million from $256.7 million. Its Abercrombie & Fitch same-store sales rose 4%; Hollister Co. same-store sales climbed 8%; and Ruehl same-store sales gained 6%.

Advanced Magnetics Inc. (AMAG, Trade ) said its Phase III studies on ferumoxytol, an intravenous iron replacement, met their primary and secondary endpoints. The Cambridge, Mass.-based company said the two studies demonstrate a significant improvement in hemoglobin levels for non-dialysis dependent patients using the drug, compared with oral iron supplements.

Aladdin Knowledge Systems (ALDN, Trade ) said its board has approved a buyback program of up to $10 million, or a maximum of 500,000 shares.

Apogee Enterprises (APOG, Trade ) said its fourth-quarter net income jumped 81% to $9.68 million, or 34 cents a shares, from $5.35 million, or 19 cents a share a year earlier, as revenue climbed 17%. The Minneapolis glass maker's revenue for the quarter ended March 3 rose to $206.2 million from $175.6 million. On average, analysts expected per-share earnings of 28 cents on revenue of $204.9 million, according to a poll by Thomson Financial. For fiscal 2008 the company expects revenue to grow 9% to 12%. The company raised its 2008 continuing operations per-share earnings guidance to a range of $1.27 to $1.37 from a range of $1.20 to $1.30.

Bare Escentuals (BARE, Trade ) was upgraded to buy from neutral at Goldman Sachs.

CDW Corp. (CDWC, Trade ) said average daily sales for March rose 25% to $31.6 million from $25.4 million. Total sales for the month rose to $696.2 million from last year's $584 million. For the first quarter, the Vernon Hills, Ill. technology products company average daily sales rose to $29 million from $24.8 million and total sales grew to $1.86 billion from $1.59 billion.

ClickSoftware Technologies (CKSW, Trade ) said it's signed an agreement with an undisclosed document management company.

Collegiate Pacific Inc. (BOO, Trade ) said it expects revenue of about $63 million for its fiscal third quarter ended March 31. The company also said its board remains "committed" to reviewing and considering options to improve shareholder value.

Dillard's Inc.'s (DDS, Trade ) same-store sales rose 6% in March, boosted by earlier Easter holiday shopping. The Little Rock, Ark., regional group of department stores said total sales for the five weeks ended April 7 rose to $679.6 million from $631.9 million for the five weeks ended April 1, 2006. Analysts surveyed by Thomson Financial expected, on average, a decrease of 0.2% in same-store sales. Dillard's said sales of junior's and children's apparel significantly exceeded its average sales performance, while sales of home and other merchandise were significantly below trend.

Dot Hill Systems Corp. (HILL, Trade ) said it now expects a first-quarter loss of 13 to 15 cents a share on revenue of $53 million to $54 million. The Carlsbad, Calif.-based provider of storage systems previously forecast a per-share loss of 20 cents to 23 cents a share on revenue of $46 million to $49 million. Dot Hill said the increased forecast is largely due to higher-than-expected revenue and margin contribution from its largest OEM customer.

Dow Chemical Co. (DOW, Trade ) fired J. Pedro Reinhard, a senior advisor and a director, and Romeo Kreinberg, an executive vice president of its performance plastics and chemicals portfolio, after the chemical company learned of "business activity that was highly inappropriate and a clear violation" of its code of conduct. Dow said in a statement that Reinhard and Kreinberg "were involved in unauthorized discussions with third parties about the potential acquisition of the company."

Fastenal Co. (FAST, Trade ) said its first-quarter net income rose 13% to $54 million, or 36 cents a share, from $47.9 million, or 32 cents a share, a year earlier. For the latest quarter, net sales increased 13% to $489.2 million from $431.7 million.

Forest Oil Corp. (FST, Trade ) was upgraded to equal-weight from underweight at Morgan Stanley.

Hawaiian Holdings Inc. (HA, Trade ) said March traffic at its Hawaiian Airlines unit rose almost 22% and its capacity grew about 17%. That translated to a 3.5 point rise in load factor, or the percentage of seats filled with paying passengers, to 91% from about 88%. For the quarter, the airline said its load factor fell fractionally to 87.5%.

Healthways Inc. (HWAY, Trade ) was upgraded to neutral from sell at Goldman Sachs.

Ipsco Inc. (IPS, Trade ) said it's currently engaged in discussions that could lead to a potential acquisition of the company. The Lisle, Ill., maker of steel plate and energy tubular products added that there can be no assurance a transaction will take place. The company, which noted the recent appreciation in its stock price, said it issued the statement in response to market rumors.

Kraft Foods (KFT, Trade ) was upgraded to buy from neutral at UBS and to equal-weight from underweight at Morgan Stanley. UBS also lifted its price target on the stock to $37 from $34.

Lam Research (LRCX, Trade ) was upgraded to hold from sell at Citigroup Investment Research.

Manor Care (HCR, Trade ) was upgraded to peer perform from underperform at Bear Stearns.

MedImmune Inc. (MEDI, Trade ) confirmed it will explore a sale of the company. The Gaithersburg, Md., biotechnology company said Thursday it hired Goldman Sachs & Co. and Dewey Ballantine LLP to help evaluate whether third parties would be interested in buying MedImmune at a price that would represent a better value for its shareholders than having the company remain independent. MedImmune said in February the board believed the best way to maximize shareholder value was to "aggressively implement its business plan." But "indications of interest by major pharmaceutical companies," along with dissatisfaction by certain shareholders with its stock-price performance, led the board to authorize management to consider a sale.

M/I Homes Inc.'s (MHO, Trade ) first-quarter new contracts dropped 17% to 942 homes from 1,137 in the year-earlier quarter as the company's Florida and Midwest regions experienced declines. Homes delivered during the quarter fell 15% to 704 from 832 a year earlier, the company said Thursday. The Columbus, Ohio, home builder said, however, its cancellation rate declined to 25% from 63% in the fourth quarter of 2006. M/I Homes had a backlog of 1,761 units as of March 31, down 43% from 3,112 units a year ago.

Mobius Management Systems Inc. (MOBI, Trade ) agreed to be acquired by Allen Systems Group Inc., an enterprise software provider, for $10.05 a share in cash. Mobius, a Rye, N.Y., enterprise software provider, said the $10.05 a share purchase price represents a premium of about 35% over its $7.44 closing price on April 11, the last trading day prior to the announcement. The company said upon completion of the transaction, it will be a unit of ASG. The transaction is expected to close in the second or third calendar quarter. Mobius said it expects a fiscal third-quarter loss of 8 to 10 cents a share on revenue of $18.7 million to $19.2 million.

Mothers Work Inc. (MWRK, Trade ) said its March sales at stores open at least one year rose 3.6%. Analysts, on average, expected its same-store sales to fall 2%, according to Thomson Financial. The company noted same-store sales were favorably impacted by four to five percentage points by an extra Saturday in the month compared to a year ago and the earlier Easter. Net sales for March rose 4.2% to $59.1 million. The company also said it expects second quarter earnings to significantly exceed the previous year and be within its previously announced guidance range.

Murphy Oil Corp. (MUR, Trade ) expects first-quarter income of 60 to 65 cents a share. On average, analysts polled by Thomson Financial expect first-quarter earnings of 53 cents a share. In the year-ago first quarter, the company earned 60 cents a share. The El Dorado, Ark., oil and gas producer said it expects production and sales volume of 94,000 barrels of oil equivalent per day. Murphy Oil expects first-quarter corporate charges of about $13 million.

NovaStar Financial Inc. (NFI, Trade ) said it has initiated a formal process to explore strategic alternatives, including a possible sale of the company. The mortgage lender said it has retained Deutsche Bank Securities Inc. to act as an adviser. NovaStar also said it has received a commitment for an additional financing facility of up to $100 million.

Pacific Sunwear (PSUN, Trade ) said March same-store sales rose 14.1% over year-earlier levels. Analysts surveyed by Thomson Financial had been expecting same-store sales growth of 3.4%, on average. Total sales for the month increased 18% to $140.3 million from last year's $119.3 million.

Pactiv Corp. (PTV, Trade ) agreed to acquire Prairie Packaging, a maker of disposable tableware products, for $1 billion. The transaction is expected to close in the second quarter. Pactiv anticipates that Prairie will add 2 to 4 cents a share in 2007 earnings, including annual cost efficiencies of $15 million.

SAIC Corp. (SAI, Trade ) said fourth-quarter earnings fell to $84 million, or 20 cents a share, from a year-earlier profit of $154 million, or 44 cents a share, when there were fewer shares outstanding. The company also said it would have a role in the General Services Administration's Networx Universal program as part of a team led by Qwest Communications (Q, Trade )

Thomas Properties Group Inc. (TPGI, Trade ) said it plans to offer 7 million shares of its common stock in a public offering.

United Retail Group Inc. (URGI, Trade ) said that its comparable sales in March rose 11%. Total sales increased 12% to $45.5 million. Analysts had been expecting a 4% rise in comparable sales from the company in March, according to data compiled by Thomson Financial.

US Bioenergy Corp. (USBE, Trade ) was initiated with a strong buy rating at Raymond James. The firm set a price target of $18.

Vonage Holdings (VG, Trade ) said its chief executive officer, Michael Snyder, has resigned. The Holmdel, N.J. telephone services company said its chairman, Jeffrey Citron, would serve as CEO on an interim basis. The company said it expects revenue for the quarter ending March to be $195 million, and net subscriber line additions to be 166,000. The company also announced cost cutting measures, including reducing marketing expenses by $110 million.

Wet Seal Inc.'s (WTSLA, Trade ) March same-store sales rose 10.9%, aided by the inclusion of Easter and by the company's spring fashion merchandise. On average, Wall Street expected the company's March same-store sales to increase 7.5%. The Foothill Ranch, Calif., retailer said Thursday total sales for the five weeks ended April 7, increased to $57.6 million from $47.3 million a year earlier. For April, Wet Seal expects a low-single-digit decrease in same-store sales.

American Oil & Gas Inc. (AEZ, Trade ) said it plans to issue six million common shares for gross proceeds of $28.5 million. The Denver-based company expects to use the proceeds of the offering to fund its drilling program and for general corporate purposes.

Avaya (AV, Trade ) was downgraded to neutral from buy at Banc of America Securities.

Bed Bath & Beyond Inc. (BBBY, Trade ) reported fourth-quarter net earnings of $205.8 million, or 72 cents a share, up 4% from $197.9 million, or 67 cents a share, during the year-ago period. The Union, N.J.-based retailer company posted revenue of $1.99 billion vs. $1.69 billion. The current results included a non-recurring charge of about $30 million, or 7 cents a share, related to Internal Revenue Code Section 409A, the company said. Excluding the charge, per-share earnings were 79 cents vs. 67 cents.

Cato Corp. (CTR, Trade ) said same-store sales rose 7% in March. Total sales increased 13% for the month to $95.1 million from $83.8 million in the corresponding year-ago period. The Charlotte, N.C., women's fashion apparel retailer said March sales were below expectations due to the negative impact of record cold weather during Easter week. For the first quarter, the company said it now sees earnings of 70 to 72 cents a share with same-store sales down between 1% and 4%. The current average estimate of analysts polled by Thomson Financial is for a profit of 77 cents a share in the April period.

CECO Environmental Corp. (CECE, Trade ) filed a registration statement with the SEC for a proposed follow-on offering of roughly 3.35 million common shares. The deal includes an over-allotment option for the sale of an additional 502,225 shares. The company is selling 1 million of the shares, and selling stockholders are offering the remainder.

Cell Therapeutics (CTIC, Trade ) said it's agreed to sell about $37.2 million worth of its 3% convertible preferred stock and warrants to several institutional investors.

Children's Place Retail Stores Inc. (PLCE, Trade ) said its March sales at stores open at least one year rose 7%. Analysts, on average, had expected its same-store sales to rise 6%, according to Thomson Financial. Total sales for the five weeks ended April 7 rose 18% to $204.7 million. The Secaucus, N.J.-based company expects first-quarter profit to be about flat with last year's first quarter. Children's Place continues to expect profit for the year of about $3.63 to $3.73, before any residual expenses the company may incur as a result of the conclusion of its stock option investigation.

Christopher & Banks Corp.'s (CBK, Trade ) fiscal fourth-quarter net income plunged to $1.93 million, or 5 cents a share, from $6.68 million, or 18 cents a share, a year earlier. The Minneapolis-based women's retailer said net sales for the 14-week quarter ended March 3 increased 5.8% to $134 million, compared with $126.6 million in the 13-week period a year ago. Christopher & Banks expects a first-quarter net income range of 30 to 31 cents a share.

Cost Plus Inc. (CPWM, Trade ) said it would postpone the release of fiscal fourth-quarter results while it completes a review of inventory accounting practices. The Oakland, Calif. home good retailer said it had discovered discrepancies in inventory reconciliations, and may need to restate financial statements from 2002 through 2005 and the first three quarters of 2006. The company said it did not expect the restatement to reduce earnings by more than $11 million.

ECtel Ltd. (ECTX, Trade ) shares plunged after the company forecast first-quarter revenue of $3.4 million to $3.6 million. ECtel said net income is also expected to be impacted. Chief Executive Eitan Naor said in a statement that the company's "revenues were lower than our internal work plan following both a delay in the receipt of previously anticipated orders and a delay in receiving acceptance for certain customer projects that are part of our backlog."

Genentech (DNA, Trade ) said its first-quarter profit surged 68% and sales rose 43% from the same period a year ago even as sales of two of its key cancer treatments came in lower on a sequential basis.

Health Care REIT Inc. (HCN, Trade ) said it plans to offer 5 million shares of its common stock.

Interphase Corp. (INPH, Trade ) said it expects to report a "significant revenue shortfall" for the first quarter. Interphase shares recently traded at $9.86 after hours, a decline of 27.8% from the regular-session closing price of $13.66. The Plano, Texas, networking technologies company expects a first-quarter loss of $1.7 million to $2.2 million on revenue of $5 million to $5.1 million.

Jos. A. Bank Clothiers (JOSB, Trade ) said its March sales at stores open at least one year rose 1.4%. Analysts, on average, expected its same-store sales to rise 2.7%, according to Thomson Financial. Total sales for the month ended April 7 rose 10.1% to $45.7 million.

Limited Brands Inc. (LTD, Trade ) named Stuart Burgdoerfer as chief financial officer, effective immediately. The company also said same-store sales rose 8% in March. The average estimate of analysts polled by Thomson Financial was for an increase of 6.6% for the month. Total sales for the month rose to $892.3 million from $788.2 million in the corresponding period a year earlier.

MarineMax (HZO, Trade ) warned that it expects its fiscal 2007 profit to be sharply lower than its previous guidance due to higher costs and increasing price pressure as well as a challenging market. The firm said it expects earnings for the year ending Sept. 30 to be in the range of 45 cents to 65 cents a share. It had previously expected earnings in a range of $1.40 to $1.50 a share. For the second quarter it forecast earnings of 14 cents to 17 cents a share, including a gain of 6 cents per share from insurance claims associated with Hurricane Wilma in 2006. MarineMax said while it is disappointed with its earnings, it has still managed to gain market share. It added it is taking steps to reduce costs and grow the strength of its balance sheet and has also reduced its purchases from manufacturers to reflect its cautious outlook.

Men's Wearhouse Inc. (MW, Trade ) expects its fiscal first-quarter earnings on the lower end of its previously stated range of 63 to 67 cents a share. A Thomson Financial survey of analysts, on average, expects earnings of 66 cents a share for the quarter. Analysts' estimates usually exclude items. The Houston off-price specialty retailer cited softening U.S. sales for the change in forecast.

Mercantile Bank Corp. (MBWM, Trade ) was downgraded to sector perform from outperform at RBC Capital Markets. The firm also cut its price target to $33 from$38.

MGIC Investments' (MTG, Trade ) shares fell after the company posted weaker than expected earnings due to a build up in reserves and lower income from a joint venture. The company posted first-quarter earnings of $1.12 a share, down from $1.87 a share a year earlier and well off the average analyst estimate of $1.71. Total revenue for the quarter edged up slightly to $369.6 million from $369 million.

Microstrategy (MSTR, Trade ) was downgraded to reduce from neutral at SunTrust Robinson Humphrey.

Nautilus Inc. (NLS, Trade ) shares sank after the Vancouver, Wash.-based maker of exercise equipment said it now expects first-quarter earnings of 8 cents to 9 cents a share on revenue of $160 million. The company had previously forecast a per-share profit of 18 cents to 21 cents on revenue of $185 million to $195 million. For full year 2007, Nautilus now expects earnings growth of 20% to 30% on sales growth of 5% to 10%. "Our international, apparel and commercial businesses performed well," said Gregg Hammann, chairman and chief executive, in a statement. "However, the North American market for home fitness was sluggish, which resulted in a substantial shortfall in March retail replenishment orders, and softness in direct."

New York & Co. (NWY, Trade ) said its March sales at stores open at least one year rose 4.5%, helped by the earlier Easter holiday. Analysts, on average, had expected its same-store sales to rise 4.4%, according to Thomson Financial. Total net sales for the five weeks ended April 7 rose 16.9% to $110.9 million. "Sales gained momentum throughout the month and included a successful pre-Easter week," Richard Crystal, New York & Co. chairman and chief executive, said in a statement. "We remain optimistic about our business during the remainder of the spring season but do expect sales to be impacted in April due to the shift of the Easter selling period to March."

Shares of Nitches Inc. (NICH, Trade ) fell after the San Diego-based apparel company reported a fiscal second-quarter net loss of $511,000, or 10 cents a share, compared with net earnings of $45,000, or a penny a share, in the year-ago period. Revenue rose to $14.3 million from $12.3 million. As of Feb. 28, 2007, the company had unfilled customer orders of $28.1 million, compared with $22.4 million at the same time last year.

Ocean Bio-Chem (OBCI, Trade ) shares dropped after the company reported first-quarter gross sales of $4.42 million, down 7.7% from $4.79 million in the year-ago period. Fort Lauderdale, Fla.-based Ocean Bio-Chem makes maintenance and care products for boats, recreational vehicles and automobiles

Research in Motion Ltd. (RIMM, Trade ) said its fiscal fourth-quarter profit surged tenfold from a year earlier, when it had a large legal expense, as sales rose 66% on strong demand for the company's Blackberry wireless devices.

Ruby Tuesday Inc. (RI, Trade ) earned $28.7 million, or 49 cents a share in its fiscal third quarter, down from $30.2 million, or 50 cents, in the year-ago period, the company said Wednesday. Excluding charges, the company would have earned 57 cents, a 14% increase. Total sales were up almost 12% to $377.9 million but sales at restaurants open at least a year fell 1%. Ruby Tuesday also said that effective with the start of trading on Thursday, its ticker symbol with change to RT.

Saks Inc.'s (SKS, Trade ) same-store sales rose 10% in March. The Birmingham, Ala., retailer said owned sales for the five weeks ended April 7 rose to $284.3 million from $253.7 million for the five weeks ended April 1, 2006. Analysts surveyed by Thomson Financial expected, on average, a 13% increase in same-store sales. Saks said that for March, the strongest categories for Saks Fifth Avenue were women's designer and contemporary sportswear, fine jewelry, handbags, and men's sportswear, shoes and accessories. Children's apparel, women's large sizes, fashion jewelry and cosmetics had the softest performance.