Ambac, Boots & Coots and Palm Surge

Mayank Mehta
13 Apr, 2010
New York City

Aloca Inc declined after quarterly sales were lower than expected and reported narrower loss. Palm is in discussion with Asia based companies that may result in the company sale. Peabody Energy is negotiating with Coal India for long term supply.

[R]12:10 PM New York – Aloca Inc declined after quarterly sales were lower than expected and reported narrower loss. Palm is in discussion with Asia based companies that may result in the company sale. Peabody Energy is negotiating with Coal India for long term supply.[/R]

Of the stocks in S&P 500 index, 184 increased, 311 declined and 5 were unchanged.

Huntington Bancshares Incorporated led the decliners in the S&P 500 index with a loss of 5.4% followed by losses in Avon Products, Inc of 5.0% and in KeyCorp of 3.0%, in CF Industries Holdings, Inc of 2.9% and in Alcoa Inc of 2.9%.

DeVry Inc led gainers in the S&P 500 index with a rise of 6.3% followed by gains in Fastenal Company 4.2%, in Cognizant Technology Solutions Corporation of 3.2% and in Expedia, Inc 2.4%.

Other Movers

Alcoa Inc ((AA)) decreased 2.3% or 34 cents to $14.23 after the aluminum maker said first quarter sales rose 18% to $4.89 billion from $4.15 billion a year ago. Net loss in the quarter was $201 million or 20 cents per diluted share compared to net loss of $497 million or 61 cents per share a year ago.

Alphatec Holdings, Inc ((ATEC)) rose 0.2% or 1 cents to $5.85 after the maker of medical devices filed to sell 8 million shares and a selling shareholder HealthpointCapital Partners, L.P., is offering 8 million shares.

Ambac Financial Group, Inc ((ABK)) surged 104.5% or $1.15 to $2.25 after the bond insurer soared fourth quarter 2009 net income of $558.1 million, or net income of $1.93 per diluted share.

ArvinMeritor, Inc ((ARM)) gained 6.3% or 89 cents to $15.02 after the maker of parts for cars and trucks was added to the “Conviction Buy” list at Goldman Sachs Group Inc.

Boots & Coots Inc ((WEL)) surged 25.5% or 60 cents to $2.95 after the company that fights oil-well fires jointly announced today that Halliburton has entered into a definitive merger agreement to acquire all of the outstanding stock of. Under the merger agreement stockholders will receive $3.00 a share for each share comprised of $1.73 in cash and $1.27 in Halliburton common stock.

Double-Take Software Inc ((DBTK)) the maker of software to protect data surged 19.8% or $1.73 to $10.44.

Expedia, Inc ((EXPE)) added 2.4% or 61 cents to $25.18 after the online travel agency was upgraded to “overweight” from “neutral” by Piper Jaffray.

Fastenal Company ((FAST)) added 4.3% or $2.25 to $54.15 after the nuts and bolts distributor reported first quarter sales rose 6.4% to $520.8 million from $489.3 million a year ago. Net income in the quarter rose 15% to $56.0 million or 38 cents per diluted share compared to net income of $48.7 million or 33 cents per share a year ago.

Frisch’s Restaurants, Inc ((FRS)) fell 3.3% or 70 cents to $20.30 after the operator of family-style restaurants reported third quarter sales fell 4% to $64.9 million from $67.7 million a year ago. Net income in the quarter fell 41% to $2.0 million or 39 cents per diluted share compared to net income of $3.4 million or 66 cents per share a year ago.

Javelin Pharmaceuticals, Inc ((JAV)) surged 60.4% or 81 cents to $2.15 after the developer of pain medications announced that it received a binding offer from Hospira, Inc. The company will terminate its merger agreement with Myriad Pharmaceuticals Inc.

NYSE Euronext ((NYX)) the operator of the U.S. stock exchange fell 0.03% or 1 cent to $32.30.

Palm Inc ((PALM)) surged 15% to $6.00 after media reports suggested that the company is in active negotiations with several Asian telephone makers including China based Huawei Technologies.

Peabody Energy Corp ((BTU)) gained 2.5% to $42.40 and the company confirmed that it is in negotiations with state controlled Coal India to supply coal for long term.

The Talbots, Inc ((TLB)) gained 6.1% or 88 cents to $15.27 after the women''s clothing company reported fourth quarter sales fell 3.7% to $316 million from $328 million a year ago. Net income in the quarter was $4.1 million or 7 cents a diluted share compared to net loss of $361.5 million or $6.75 per share a year ago.