U.S. Movers: American Superconductor, Genpact, Monsanto, Oclaro, Verint

Mukesh Buch
06 Apr, 2011
New York City

Cephalon rejects unsolicited offer from Valeant Pharmaceuticals. DISH Network won auction for Blockbuster, Inc. valued $320 million. Genpact agreed to acquire Headstrong Corp for cash of $550 million. Monsanto second quarter net income surged 25% to $1.0 billion.

[R]10:55 AM New York – Cephalon rejects unsolicited offer from Valeant Pharmaceuticals. DISH Network won auction for Blockbuster, Inc. valued $320 million. Genpact agreed to acquire Headstrong Corp for cash of $550 million. Monsanto second quarter net income surged 25% to $1.0 billion.[/R]

Resource stocks gained after gold and silver edged higher and coal prices increased. Xstrata Plc struck a one year contract with a Japanese utility to sell thermal coal at $130 a ton, 8% higher price than the spot price.

Of 30 the stocks in the Dow, 27 increased and 3 decreased.

Of the stocks in the Dow Jones Industrial Average, Cisco Systems, Inc. led the gainers with a rise of 1.68% followed by increase in General Electric Company of 1.03%, in Kraft Foods Inc. of 0.76%, in 3M Company of 0.75%, in Bank of America Corporation of 0.74%.

Verizon Communications Inc. led the decliners with a fall of 1.35%, followed by decline in AT&T Inc. of 0.98%, in Johnson & Johnson of 0.10%.

Other Movers

American Superconductor Corporation ((AMSC)) tumbled 48.5% or $12.08 to $12.80 after the power technology company anticipated fiscal fourth quarter revenues less than $42 million and a net loss. The company currently expects full year fiscal 2010 revenues to be less than $355 million.

AngioDynamics, Inc. ((ANGO)) gained 2.4% or 36 cents to $15.35 after the medical devices provider reported third quarter net sales rose 5% to $54.6 million from $52.2 million a year ago. Net income in the quarter increased to $3.81 million or 15 cents per diluted share compared to $3.33 million or 13 cents per share a year ago.

Cephalon, Inc. ((CEPH)) fell 0.09% or 7 cents to $77.30 after the biopharmaceutical company’s board formally rejected Valeant Pharmaceuticals International, Inc.''s unsolicited offer. The board determined that Valeant''s proposed price is undervalues the company.

DISH Network Corporation ((DISH)) rose 0.3% or 9 cents to $24.40 after the television services provider won the bankruptcy court auction for the assets of Blockbuster for $320 million and expects to pay $228 million in cash at the closing in the second quarter 2011.

Freeport McMoran Copper & Gold Inc. ((FCX)) increased 1.8% or $1.05 to $57.66 after the mining company and BHP Billiton ((BHP)) added 1.1% to $99.44. Southern Copper increased 1.3% to $41 and Newmont Mining declined 03.5 to $56.78.

Genpact Limited ((G)) surged 4.6% or 69 cents to $15.45 after the Bermuda based outsource company agreed to acquire Headstrong Corporation a consulting and IT services specialized in capital markets and healthcare for cash of $550 million. The transaction funded by existing cash and acquisition financing and expected to close by May 31.

Monsanto Company ((MON)) slumped 3.7% or $2.75 to $70.85 after the agricultural product provider reported second quarter total net sales soared 15% to $4.13 billion from $3.89 billion a year ago. Net income in the quarter surged 25% to $1,017 million or $1.88 per diluted share compared to $887 million or $1.60 per share in the previous year.

MSC Industrial Direct Co., Inc ((MSM)) soared 5.8% or $4.11 to $74.61 after the metal marketers stated second quarter net sales increased 22.2% to $483.4 million from $395.5 million a year ago. Net income in the quarter surged 62.1% to $49.7 million or 78 cents per diluted share compared to $30.6 million or 48 cents per share in the previous year.

New Oriental Education & Technology Group Inc ((EDU)) gained 7.6% or $8.07 to $113.14 after the China based English language tutor was recommended by analysts in New York and Hong Kong.

Oclaro, Inc. ((OCLR)) surged 6.4% or 70 cents to $11.59 after the optical network components provider expects revenues for the fiscal third quarter ended April 2 to be $116.5 million. The revenue shortfall from previous estimate resulted from inventory corrections among certain telecom customers.

Orchid Cellmark Inc. ((ORCH)) soared 38% or 77 cents to $2.78 after the DNA testing service provider agreed to merger with Laboratory Corporation of America Holdings ((LH)) in total purchase price of $85.4 million. The closing of the acquisition is expected in the second quarter of 2011. LabCorp's total net consideration payable is approximately $65.6 million.

Peabody Energy Corporation ((BTU)) decreased 1.2% or 91 cents to $71.32 and Massey Energy fell 0.8% to $69.52. Arch Coal, Alpha Natural Resources and International Coal Group declined between 0.2% and 0.4%.

Verint Systems Inc. ((VRNT)) increased 2.6% or 99 cents to $37.60 after the actionable intelligence solution provider said fourth quarter revenue increased to $186.9 million from $172.7 million a prior year. Net income in the quarter grew to $9.5 million or 25 cents per diluted share compared to net loss of $22.2 million or 68 cents per share a year ago.

For the full year revenue increased to $726.8 million from $703.6 million a prior year. Net income in the year soared to $11.4 million or 31 cents per diluted share compared to $2.0 million or 6 cents per diluted share a year ago.