Circuit City Bankruptcy Drags Realtors

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

Circuit City bankruptcy filing dragged stocks of real estate investment trusts. Goldman dropped after it laid-off 10% of its staff. Google Inc declined on negative views from Barclays. General Motors plunged 30% on bankruptcy worries. China related stocks surged on stimulus package.

[R]4:30 PM New York – Google Drops on negative views from Barclays. Goldman Sachs fell after it cut 10% of its staff.[/R]

A.C. Moore Arts & Crafts, Inc ((ACMR)) climbed 17.3% or 32 cents to $2.14 after the specialty retailer of arts, crafts and floral merchandise reported third quarter revenues fell 4.9% to $116.7 million from $122.6 million a year ago. Net loss in the quarter was $7.5 million or 37 cents per diluted share compared to net loss of $0.6 million or 3 cents per share, a year ago.

Allied Capital Corp ((ALD)) plunged 43% or $3.19 to $4.11 after it reported a loss wider than expected to $1.78 a share.

American International Group, Inc ((AIG)) gained 45% or 94 cents to $3.06 after once the world''s largest insurer reported third quarter revenues fell 97% to $898 million from $29.84 billion a year ago. Net loss in the quarter was $24.47 billion or $9.05 per diluted share compared to net income of $3.09 billion or $1.19 per share, a year ago. The Fed also offered relaxed loan terms and injected $40 billion in the company.

American Capital Limited ((ACAS)) plunged 42% or $5.78 to $7.99 after it agreed to acquire European Capital 32% that it does not own for $158 million or $4.59 a share through exchange of 0.33 its share. European capital has plunged sharply in the last three months.

Alcon, Inc ((ACL)) dropped 5.5% or $5.08 to $86.12 on no apparent news. The Swiss eye care company sells pharmaceuticals and medical products for eye diseases and disorders.

Clear Channel Outdoor Holdings, Inc ((CCO)) lost 6.2% or 36 cents to $5.43 after the world''s largest outdoor advertising company reported third quarter revenues fell 0.5% to $813.4 million from $817.5 million a year ago. Net income in the quarter fell 83% to $9.1 million or 3 cents per diluted share compared to net income of $54.7 million or 15 cents per share, a year ago.

Circuit City Stores, Inc ((CC)) plunged 92.0% or 23 cents to $0.0200 after the company filed for bankruptcy. The filing showed that the company has assets of $3.4 billion and $2.32 billion in liabilities. The company’s largest vendor lenders include Hewlett Packard, Samsung Electronics and Sony Corp. Circuit City owes money to more than 100,000 creditors. The company has arranged for $1.1 billion in debtor possession.

CNOOC Limited ((CEO)) climbed 5.3% or $4.16 to $82.16 after China unveiled $585 billion of economic stimulus plan. Energy and resource stocks rallied.

Ecolab Inc ((ECL)) decreased 7.4% or $2.72 to $33.85 after the Henkel, a German consumer goods group, said it had struck a deal with Ecolab, a provider of cleaning supplies and services, to sell the stake in the open market. It said Ecolab would buy at least $300 million of the shares.

General Motors Corporation ((GM)) lost 23.6% or $1.03 to $3.33 after it plummeted 30% after a Deutsche Bank AG analyst downgraded the shares and cut the price target to zero and suggested that even if the company avoids the bankruptcy the company will struggle in the marketplace.

Google Inc dropped 3.7% or $12.36 to $318.78 after Barclays commented that slowing U.S. economy will affect advertising on Google and requests for search.

Greenhill & Co., Inc ((GHL)) fell 3.8% or $4.28 to $61.49 after an investment banking firm, has priced an offering of 1.25 million newly issued shares of its common stock and 2.25 million shares currently owned by certain managing directors of the firm at $56 per share.

The Goldman Sachs Group, Inc ((GS)) plunged 8.3% or $6.39 to $71.28 after the company laid-off nearly 10% of the staff or 3,200 people.

PetroChina Company Limited ((PTR)) gained 4.9% or $3.70 to $78.00 after the French oil giant Total SA ((TOT)) and Chinese state oil company are close to get an approval to explore natural gas in Northwest China.

Six Flags, Inc ((SIX)) added 22.7% or 0.100 cents to $0.540 after it operating regional theme parks reported third quarter revenues rose 5% to $489.3 million from $464.2 million a year ago. Net income in the quarter rose 60% to $143.5 million or 95 cents per diluted share compared to net income of $89.7 million or 61 cents per share, a year ago.

Simon Property Group, Inc ((SPG)) lost 10.2% or $6.94 to $61.01 after financial and real estate companies sold off on the Circuit City bankruptcy filing. Developers Diversified ((DDR)) and General Growth Properties ((GGP)) plunged 33% or 70 cents to $1.37.

Warner Chilcott Limited ((WCRX)) surged 3.5% or 48 cents to $13.88 after the specialty pharmaceutical company third quarter revenues rose 2% to $231.9 million from $226.5 million a year ago. Net income in the quarter rose 591% to $40.1 million or 16 cents per diluted share compared to net income of $5.8 million or 2 cents per share, a year ago.