MicroStrategy, Pep Boys, Staples, Yum!: 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 8:45 a.m. in New York.
Amylin Pharmaceuticals Inc. (AMLN) and Alkermes Inc. (ALKS) : The drugmakers succeeded in their third attempt to gain U.S. clearance for Bydureon, a once-weekly version of Amylin’s diabetes shot. The Food and Drug Administration approved the drug for adults with Type 2 diabetes.
Amylin surged 16 percent to $14.10, and Alkermes rose 4.7 percent to $19.99.
Cliffs Natural Resources Inc. (CLF) retreated 1.4 percent to $72.06. The iron-ore miner may rise to as high as $115 per share within the next year as it increases production overseas to meet growing demand for infrastructure, Barron’s reported.
Coach Inc. (COH) : The retailer may rise to as high as $80 per share in the next year as demand for luxury handbags and accessories increases, Barron’s reported, citing Omar Saad, analyst at International Strategy & Investment Group.
Delta Air Lines Inc. (DAL) : The carrier is weighing whether to make an offer for US Airways Group Inc. (LCC) , the smallest full-service domestic carrier. US Airways confirmed earlier this month it’s evaluating a possible merger with American Airlines parent AMR Corp. (AAMRQ US) in bankruptcy. TPG Capital and Delta also are evaluating possible bids for American, people with knowledge of the matter have said.
US Airways advanced 7.3 percent to $8.78.
El Paso Corp. (EP) : The company is in advanced talks to sell its oil-exploration unit to a group led by private equity firm Apollo Global Management LLC (APO) (APO US) for about $7 billion, the Wall Street Journal reported, citing unidentified people.
Jarden Corp. (JAH) : The maker of Mr. Coffee brewers may stall after a 22 percent rally since last summer and the suspension of its dividend to focus on share buybacks, Barron’s reported, without citing anyone.
MicroStrategy Inc. (MSTR) sank 4.5 percent to $109.50. The maker of analytical software reported fourth-quarter earnings excluding some items of 81 cents a share, missing the average analyst estimate of 92 cents.
Momenta Pharmaceuticals Inc. (MNTA) rose 3.7 percent to $15.75. The owner of patents on the blood-thinner Lovenox will replace HealthSpring Inc. (HS) in the Standard & Poor’s SmallCap 600 Index after the close of trading on Jan. 31. The change is being made because Cigna Corp. (CI) is acquiring HealthSpring in a deal expected to be completed today.
Omnicom Group Inc. (OMC) slipped 1.8 percent to $45.69. The owner of advertising agencies was lowered to “market perform” from “outperform” by Daniel Salmon, an equity analyst at BMO Capital Markets, with a 12-month price estimate of $49.
Pep Boys -- Manny, Moe & Jack (PBY US) surged 25 percent to $15.10. The Philadelphia-based automotive retailer agreed to be acquired by Gores Group for $1 billion including debt. The cash offer of $15 a share is 24 percent higher than Pep Boys’ closing price on Jan. 27.
PharMerica Corp. (PMC) fell 14 percent to $12.26. U.S. regulators sued Omnicare Inc. (OCR) to block its $440.8 million takeover of the drug-supply company, a deal they said would increase prices for elderly nursing-home residents covered by Medicare.
Research In Motion Ltd. (RIM) : The BlackBerry maker has held talks with competitors about licensing its new software, Chief Executive Officer Thorsten Heins said. Handset and PC makers approached RIMM about the licensing, the CEO said, without identifying them.
Staples Inc. (SPLS) declined 3.5 percent to $15.45. The world’s largest office products company was cut to “sell” from “neutral” by Goldman Sachs Group Inc., which cited a “tough” outlook for the global printing segment.
Thomas & Betts Corp. (TNB US) surged 22 percent to $70.87. ABB Ltd. agreed to buy the designer and maker of electrical components for $3.9 billion to expand its North American distribution network and boost sales of low-voltage gear. ABB offered $72 for each share of Thomas & Betts, 24 percent more than the close on Jan. 27.
U.S. Steel Corp. (X) declined 2.6 percent to $29.11. The steel company plans to sell U.S. Steel Serbia d.o.o. to Serbia for a nominal purchase price and to take a non-cash charge of $400 million to $450 million in the first quarter.
Wendy’s Co. (WEN) (WEN US) fell 2.1 percent to $5.10. The restaurant chain said earnings before income, taxes, depreciation and amortization in 2012 will be no more than $345 million, excluding some items, compared with the average analyst estimate of $353.1 million.
Yum! Brands Inc. (YUM) (YUM US) retreated 0.6 percent to $62.50. The owner of Pizza Hut and Taco Bell is focusing on faster- growing markets including China and India for revenue expansion while selling U.S. stores to franchises, Barron’s reported, citing an interview with Chief Executive Officer David Novak.
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