Google, King Pharma, ActivIdentity Rise; Global Payments Fall

Bikram Pandey
12 Oct, 2010
New York City

U.S. stocks traded lackluster as the dollar edged lower and commodities traded near recent highs. Google Inc increased 1% after it formed a joint venture to distribute electricity. King Pharmaceuticals soared on a takeover agreement with Pfizer.

[R]12:50 PM New York – U.S. stocks traded lackluster as the dollar edged lower and commodities traded near recent highs. Google Inc increased 1% after it formed a joint venture to distribute electricity. King Pharmaceuticals soared on a takeover agreement with Pfizer. Global Payments Inc dropped on lower than expected earnings.[/R]

Of the stocks in the Dow, 6 increased, 24 decreased and none were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, American Express Company led the gainers with a rise of 1.48% followed by increase in General Electric Company of 1.11%, in Bank of America Corporation of 0.99%, in Alcoa Inc. of 0.27%, The Coca-Cola Company of 0.17%.

Verizon Communications Inc. led the decliners with a fall of 2.45% followed by decline in Caterpillar Inc. of 1.29%, in The Walt Disney Company of 1.27%, in United Technologies Corporation of 1.21%, in Chevron Corporation of 1.19%.

Other Movers

ActivIdentity Corp soared more than 40% to $3.15 after the online transaction security software provider agreed to be acquired by Assa Abloy AB for $3.25 a share or $162 million.

American Reprographics Company ((ARP)) declined 2.9% or 18 cent to $6.36 after the reprographics company lowered its annual earnings per share guidance to the range of $0.04 to $0.09 from its earlier forecast of $0.15 to $0.30.

Avon Products Inc ((AVP)) gained 2.2% to $33.85 after it was the subject of takeover rumors.

Chesapeake Energy Corp ((CHK)) increased 2.5% to $23.85 a day after the company signed a deal with China based Cnooc Ltd and media speculation that the company may be a takeover target.

Ciena Corporation ((CIEN)) plunged 2.5% or 39 cent to $15.15 after the global supplier of telecommunications networking equipment said it still expects a sequential increase in its fourth quarter revenue of up to 5%, which, based on third quarter results, reflects a revenue range of around $390 million to $409 million. Also, the company anticipates adjusted gross margin in the low forty percent range.

Clearwater Paper Corp. ((CLW)) gained 1.5% or $1.26 to $80.46 after the producer of tissue and paperboard products announced certain preliminary financial results for the third quarter ended September 30. The company currently estimates net sales for the quarter to be between $345 million and $360 million.

Corinthian Colleges Inc ((COCO)) decreased 5.2% to $6.01 after the company said its President and Chief Operating Officer Matt Ouimet will resign from October 31.

Fastenal Company ((FAST)) slumped 5% or $2.74 to $52.01 after the wholesaler of construction supplies reported third quarter net sales advanced 8% to $603.75 million, from $489.34 million in the prior year quarter. Net earnings soared 58% to $74.99 million or 51 cents per diluted share, compared to net earnings of $47.59 million or 32 cents per share in the same quarter last year.

Ford Motor Company ((F)) fell 0.5% or 7 cent to $13.71 after the automaker reported a 27% increase in sales in the Asia Pacific and Africa region for the month of September, bolstered by continued strong growth in China and India as well as launch of the new Ford Fiesta subcompact in Southeast Asia.

The company sold 78,700 units in the region, while sales for the first three quarters of the year surged 40% to 651,856 units.

GameStop Corp ((GME)) declined 2.8% to $19.69 after a news report in Dallas Morning News suggested that a federal appeals court ruling may not permit retailers in engaging in trade in used games.

Global Payments Inc ((GPN)) plunged 10.3% or $4.38 to $37.96 after the payment processor reported first quarter revenue rose 7.4% to $440.1 million from $409.9 million in the same quarter last year. Net income in the quarter dipped 15% to $49.4 million or 61 cents per diluted share, compared to net income of $57.8 million or 71 cents per share for the year-ago quarter.

Google Inc ((GOOG)) increased 0.7% to $543.89 after the company and investment company with Japan based Marubeni Corp agreed to form a joint venture to lay cables in the Atlantic Coast and provide electric power from wind farms to eastern states.

Johnson Controls, Inc. ((JCI)) fell 0.3% or 12 cent to $31.52 after the automotive interiors provider announced that it expects to post solid sales and double-digit earnings improvements in fiscal 2011. The company expects earnings per share to be in the range of $2.30 to $2.45 and net sales of approximately $37 billion for fiscal 2011.

KMG Chemicals, Inc. ((KMGB)) decreased 8% or $1.20 to $13.80 after the specialty chemicals maker reported fiscal fourth quarter net sales increased 29% to $62.5 million compared to $48.4 million for the same period a year ago. Net income was $3.4 million or 30 cent per diluted share compared to net income of $4.9 million or 44 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue rose 9% to $208.6 million compared to $190.7 million for the same period a year ago. Net income surged 50% to $15.3 million or $1.34 per diluted share compared to net income of $10.2 million or 91 cent per diluted share same period a year ago.

King Pharmaceuticals Inc ((KG)) soared 40% to $14.15 after the company agreed to be acquired by Pfizer Inc for $3.6 billion or $14.25 a share.

Synaptics, Incorporated ((SYNA)) declined 1.2% or 31 cent to $25.52 after the developer and supplier of custom-designed user interface solutions announced preliminary financial results for the first quarter of 2011. The company expects GAAP net income to increase over 80% from the prior year to about $18 million to $19 million, or $0.50 to $0.52 per diluted share. The company expects revenue of approximately $153 million, representing 28% growth over the prior year, and 5% growth over the preceding quarter.

Zep, Inc. ((ZEP)) slipped 2.1% or 37 cent to $17.08 after the producer of cleaning and maintenance solutions reported fourth quarter revenue increased 20.2% to $161.4 million from $134.3 million in the same quarter last year. Net income in the quarter plunged 66.7% to $2.1 million or 9 cents per diluted share, compared to net income of $6.3 million or 29 cents per share for the year-ago quarter.