Hartford, Prudential Decline, CBRE Plunges

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

Insurance companies fell on the mounting worries that leading companies in the sector will need additional capital to support their ratings. Hartford and Prudential led the decliners. CB Richard Ellis plunged after it announced a plan to raise capital in public offering.

[R]12:50PM New York - Real estate trusts, insurance and banks were among the leading decliners.[/R]

American Express ((AXP)) declined $1.44 to $22.54 after it was forced to seek Federal approval to open a bank, which was granted, and request financial assistance. The credit card lender is likely to sell credit card receivables to the Fed in exchange of cash. The charge and credit card company is facing tighter credit conditions but management has failed to rein in on executive compensations and operating expenses.

Convergys Corporation fell 10.4% or 71 cents to $6.12.

CB Richard Ellis Group Inc ((CBG)) plunged 30% or $1.81 to $4.28 after it announced a plan to sell 50 million common shares. The stock has declined more than 90% from its high of more than $41 in August of 2007.

Developers Diversified Realty Corporation, dropped 24.6% or $2.37 to $7.25 and General Growth Properties ((GGP)) declined 94 cents to 43 cents after Las Vegas Sands was forced to halt its production in China and seek added cash to meet covenants of the loans. Las Vegas Sands ((LVS)) dropped $1.35 to $6.65.

Dick’s Sporting Goods, Inc dropped 14.3% or $2.04 to $12.14 after the Wedbush Morgan downgraded the stock from “buy” to “hold” and lowered target price to $15 to $25.

Focus Media Holding Limited ((FMNH)), the China based advertising company known for its electronic displays in elevators and building lobbies, dropped 48.2% or $7.87 to $8.23 after it released fourth quarter earnings estimate of 46 cents a share, significantly lower than the market expectations.

Fundtech Ltd ((FNDT)) decreased 9.4% or 95 cents to $9.10 after the banking software developer lowered its sales and earnings outlook for the fourth quarter and trimmed annual 2008 earnings view.

General Motors Corporation lost 15% or 51 cents to $2.86, lowest since 1946 on the worries that the company may be forced to file a bankruptcy. Domestic auto sales in October plunged 46% and the company lost a market share by 1%.

Genworth Financial, Inc dropped 49% or $1.46 to $1.26 after the insurer failed to qualify for federal assistance after its credit rating was lowered. The company appointed a new chief investment officer.

Google Inc lost 4.2% or $14.07 to $304.46 after the Goldman Sachs cut its price target on Google Inc and trimmed its fourth-quarter revenue outlook. The stock fell to a 3-year low after Goldman Sachs estimated current quarter sequential revenue growth to 1% from 4%.

Insurers fell sharply as worries mount that the companies may need to raise more capital to support their ratings.

Prudential Financial Inc ((PRU)) dropped 11% or $3.46 to $27.52, MetLife ((MET)) declined 11% or $3.78 to $29.33, Hartford Financial Services ((HIG)) plunged 29% or $4.11 to $10.44 and Lincoln National Corp ((LNC)) dived 16% to $3.13 to $16.09.

KKR Financial Holdings LLC lost 44.1% or $1.48 to $1.80 after Friedman Billings lowered the target price to $2.50 and lowered the rating to ‘market perform.’ The leveraged bond investment management company suspended dividend and sought $400 million in financing from banks and the parent company.

Toll Brothers, Inc dropped 2.9% or 56 cents to $18.39 after its home builder’s revenue dropped 41% to $691 million in its fiscal fourth quarter. Toll said backlog dropped 54% to $1.33 billion from $2.85 billion. The stock is hovering near a 4-year low.