Prudential, Lincoln, Horace Mann Plunge

123jump.com Staff
10 Oct, 2008
New York City

Prudential Financial reported after the close a loss in investment portfolio and suspended stock buyback. Horace Mann, another insurer tapped bank credit line to cover losses related to investments and hurricanes. Lincon Financial dropped ahead of earnings at the end of the month.

[R]1:30AM New York – Prudential Financial reported loss in investment portfolio and suspended stock buyback. Horace Mann, another insurer tapped bank credit line to cover losses related to investments and hurricanes.[/R]

Abercrombie & Fitch Co ((ANF)) slid 14.8% or $4.82 $27.60 after the specialty apparel retailer said September same store sales fell 14% and fiscal second half 2009 revenue will be well below consensus estimate. Investors are worried that same store sales will decline further in the current quarter. The stock price closed at a level last seen in February of 2004.

Credit Suisse Group AG ((CS)) dropped 20.9% or $8.95 to $33.85 after banks and financial stocks closed sharply lower. S&P also lowered rating on Morgan Stanley and put Goldman Sachs on a negative watch list. Switzerland''s government will step in to prevent the collapse of either of its two major banks, UBS AG and Credit Suisse Group, the country''s economics minister said Thursday.

Lincoln National Corp ((LNC)) plunged 34.5% or $9.66 to $18.31 after the stocks in the insurance sector decline for the fourth day of this week.

General Motors dropped 31% or $2.15 to $4.75, a historic low after comments from Citigroup analyst suggested that recent government bailout to the automaker may not be received in time. 123jump.com estimates more layoff and market share erosion for the automaker after the current discount promotion ends.

Goldcorp Inc ((GG)) lost 4.32% or $1.26 to $29.79 as precious metals, copper and zinc mining companies fell. Gold rose but prices of copper and zinc continue to slide.

Horace Mann Educators Corporation ((HMN)) lost 40.03% or $4.18 to $6.21 after the company tapped the bank credit facility and raised $75 million. The company in the third quarter ending in September 30, will take $50 million impairment in its investment portfolio of $33 million is related to investments in Lehman Brothers, Fannie Mae, Freddie Mac and AIG.

Horace Mann estimates its financial impact from catastrophe losses during the three months ended September 30, 2008 will total $34 million to $38 million pretax. The company''s pretax catastrophe costs were $10.3 million for the three months ended September 30, 2007. The company also lowered its full year earnings before net realized investment losses to between $1.10 and $1.25 from $1.30 and $1.45 a share.

Huntsman Corporation ((HUN)) surged 28.30% or $2.58 to $11.65 after Hexion Specialty Chemicals and affiliate of leverage buyout firm Apollo Management L.P. agreed to contribute $540 million and complete merger of the two chemical companies. Apollo recently lost a court appeal to cancel the merger agreement.

International Speedway Corporation ((ISCA)) dropped 5.8% or $1.84 to $29.67 after the motor race track operator reported third quarter revenues rose 9% to $213.2 million from $195.6 million a year ago. Net income in the quarter rose 308% to $38.8 million or 79 cents per diluted share compared to net income of $9.5 million or 18 cents per share, a year ago.

Material Sciences Corporation ((MSC)) dropped 21.2% or 96 cents to $3.55 after the acoustical and coated applications materials reported second quarter sales increase of 1.1% to $56.8 million from $56.2 million a year ago. Net loss in the quarter was $1.3 million or 9 cents per diluted share compared to net loss of $1.7 million or 12 cents per share, a year ago. The company reported fifth quarterly loss in last two years.

National City Corporation ((NCC)) climbed 5.5% but at close dropped 4% to $2.15 after the Wall Street Journal reported that the bank is involved in merger talks. The battered bank’s stock has fallen from a high of $3.834 in February 2007 and the company reported a loss of $1.8 billion in the second quarter.

Quest Software, Inc ((QSFT)) gained 5.10% or $0.54 to $11.12 after the enterprise systems management software developer said it will buy back up to $400 million or 25% of company stock.

Prudential Financial ((PRU)) dropped 23.2% or $10.02 to $33.27 after the close reported a loss of $700 million in its financial services business that includes impairment from losses related to investments in AIG, Washington Mutual and Lehman Brothers. The company also suspended its stock buyback plan and said its additional capital requirements till the end of the current calendar year is “modest.” The company expects after-tax adjusted operating income between $275 million and $325 million or between 65 cents or 90 cents a share in the third quarter.

RPM International Inc ((RPM)) dropped 8.40% or $1.31 to $16.19 after the specialty coatings and sealants manufacturer reported first quarter sales increase of 5.9% to $985.5 million from $930.3 million a year ago. Net income in the quarter rose 1.8% to $69.5 million or 54 cents per diluted share compared to net income of $68.3 million or 53 cents per share, a year ago.

Research in Motion Limited ((RIMM)) climbed 2.5% or $1.43 to $59.03 after the recent stock price decline from as high as $147 stoked speculation of takeover. The company spokesman declined to elaborate on market rumors.

Ruby Tuesday, Inc ((RT)) fell 26.41% or $1.22 to $3.40 after the restaurant chain reported first quarter revenues fell 6.6% to $324 million from $346.8 million a year ago. Net income in the quarter fell 97% to $ 285,000 or 1 cent per diluted share compared to net income of $11.1 million or 21 cents per share, a year ago.

Comparable same-restaurant sales for the first quarter decreased 10.8%.