Boise, PartnerRe, Volcom, Washington Post: U.S. Equity Preview
Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 8:50 a.m. in New York.
Shares of defense-related companies may move after President Barack Obama said al-Qaeda leader Osama bin Laden has been killed. Those stocks include Northrop Grumman Corp. (NOC) , Raytheon Co. (RTN) , Lockheed Martin Corp. (LMT) and General Dynamics Corp. (GD) .
Acura Pharmaceuticals Inc. (ACUR) : The pharmaceutical company said Chief Executive Officer Andrew Reddick, who joined in August 2003, died.
Alcoa Inc. (AA) rose 2.2 percent to $17.38. The largest U.S. aluminum producer was raised to “buy” from “neutral” at Goldman Sachs Group Inc., which also lifted it share-price estimate to $22 from $17.
Applied Materials Inc. (AMAT) fell 2.5 percent to $15.30. The world’s largest producer of chipmaking equipment was downgraded to “neutral” from “overweight” at JPMorgan Chase & Co.
Boise Inc. (BZ) slipped 3.7 percent to $9.46. The paper and packaging maker reported first-quarter adjusted earnings of 22 cents a share, missing the average analyst estimate by 1 cent.
Cephalon Inc. (CEPH) rose 5.3 percent to $81.09. Teva Pharmaceutical Industries Ltd. (TEVA) , the world’s largest generic-drug maker, agreed to buy the biopharmaceutical company for $6.8 billion, trumping a hostile offer from Valeant Pharmaceuticals International Inc. (VRX) .
Valeant slumped 8.8 percent to $48.
Dolby Laboratories Inc. (DLB) gained 1.9 percent to $51. The maker of audio signal processing systems is trading at a discount and may already reflect concern about a PC market slowdown, Barron’s reported in its “The Trader” column.
EMC Corp. (EMC US) climbed 1.2 percent to $28.68. The world’s biggest maker of storage computers was raised to “buy” from “neutral” at Bank of America Corp.
International Paper Co. (IP) (IP) added 4.1 percent to $32.14. The world’s largest paper and pulp producer may rise to $42 during the next year as demand for packaging expands globally, Barron’s reported, citing Chip Dillon, an analyst at Credit Suisse.
Kindred Healthcare Inc. (KND) increased 2.3 percent to $25.79. The health care provider may rise to the mid-$30s within a year if its planned $1.3 billion acquisition of RehabCare Group Inc. adds to earnings growth, Barron’s reported.
Loews Corp. (L) fell 4.8 percent to $42.12. The holding company run by New York’s Tisch family reported first-quarter earnings of 92 cents a share. The average analyst estimate called for a profit of 91 cents.
Macy’s Inc. (M) gained 2.5 percent to $24.50. The department-store retailer may be trading at a discount as consumer spending rebounds and the company cuts debt to improve its credit rating, Barron’s reported.
Marshall & Ilsley Corp. (MI) : The Milwaukee-based bank being bought by Bank of Montreal reported a first-quarter loss of 27 cents a share, missing the average estimate among analysts surveyed by Bloomberg, which was for a loss of 17 cents.
Netflix Inc. (NFLX) jumped 2.9 percent to $239.45. The mail-order and online movie-rental service was raised to “buy” from “hold” at Citigroup Inc.
Online Resources Corp. (ORCC) : The maker of Internet banking software said first-quarter revenue was about $39.3 million, above the average analyst estimate of $38.1 million in a Bloomberg survey. Online Resources also said a Virginia court found former Chairman and Chief Executive Officer Matthew P. Lawlor wasn’t wrongfully fired, while awarding him $5.3 million on other claims that the company intends to contest.
PartnerRe Ltd. (PRE) : The reinsurer that acquired Paris Re Holdings Ltd. said the March 11 earthquake and tsunami in Japan will cost the company $230 million more than it projected last month. The cost will be about $730 million, the Bermuda- based insurer said.
Puda Coal Inc. (PUDA) declined 1.2 percent to $5.93. The Chinese coal company said Chairman Ming Zhao offered to buy the company for $12 a share. The company is continuing its investigation into allegations made by blogger Alfred Little that Zhao sold half the company and pledged the other half to Chinese private-equity investors.
Skilled Healthcare Group Inc. (SKH) : The operator of nursing and assisted living homes has an unclear outlook as investors assess a rate cut by Medicare and possible takeover bids, Barron’s reported in its “The Trader” column.
Talecris Biotherapeutics Holdings Corp. (TLCR) rallied 4.8 percent to $29.25. Grifols SA won tentative U.S. antitrust approval to buy the biopharmaceutical company for $4 billion after agreeing to sell some assets, reducing the number of major companies in the blood-plasma industry to three.
TiVo Inc. (TIVO) jumped 16 percent to $11.06. Dish Network Corp. (DISH) and EchoStar Corp. (SATS) agreed to pay the pioneer in the market for home DVRs $500 million, including an initial payment of $300 million, as part of an agreement to dismiss all pending litigation between the companies.
Dish rallied 8.2 percent to $27.10.
Volcom Inc. (VLCM) surged 24 percent to $24.40. PPR SA, the French owner of Gucci and Puma, agreed to buy all of the clothing manufacturer for $607.5 million in cash to strengthen its lifestyle sports unit with skate- and snowboarding gear.
Walt Disney Co. (DIS) : The media company may be fairly valued and the advance of the shares may slow after gaining about 15 percent this year, Barron’s reported in its “The Trader” column.
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