BestBuy Drops, General Motors Struggles

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

Steelmakers fell as global economic slowdown forces companies to cut production. ArcelorMittal dropped 10% and AK Steel declined 12%. Best Buy offered weak outlook for the holiday season. CB Richard Ellis dropped 14% on the worries that public offering will dilute shareholders.

[R]12:15 PM New York – Steelmakers dropped. General Motors traded volatile as lawmakers negotiate details and scope of the bailout plan.[/R]

AK Steel Holding Corporation ((AKS)) plunged 12% or $1.23 to $9.03 after the company announced it is temporarily closing plants in Ohio and Kentucky due to lower steel demand.

ArcelorMittal ((MT)) declined 10.2% or $2.26 to $19.93 on the worries that global slowdown will force the steelmaker to cut more than previously announce production levels. Separately, the company offered to set up a joint venture with Indonesia''s state-owned firm Krakatau Steel.

Best Buy Co., Inc ((BBY)) fell 6.8% or $1.63 to $22.25 after the U.S. electronics retailer said profit and sales will fall more than it expected in the coming holiday season. Earnings for the year through February 2009 may drop between $2.30 and $2.90 a share.

Bob Evans Farms, Inc ((BOBE)) lost 9.3% or $1.68 to $16.24 after the company lowered earnings estimate between $1.75 and $1.85 per share on revenue between $1.76 billion and $1.77 billion. The company previously estimated earnings between $2.00 and $2.10 per share.

CB Richard Ellis Group, Inc ((CBG)) fell 14.3% or 69 cents to $3.99 after the world''s largest commercial real estate broker and investment manager dropped as much as 32% on Tuesday. The company plans to sell stocks in the public offering after it failed to get enough interest from institutional investors for a private offering.

Concur Technologies, Inc ((CNQR)) added 13.9% or $2.85 to $ 23.14 after the company offered revenue guidance of 25% to $269 million in the fiscal 2009.

General Growth Properties, Inc ((GGP)) plunged 47% or 23 cents to 26 cents on the worries that weak retail environment may hamper the company’s ability to refinance its debt.

General Motors Corporation ((GM)) gained 10% or 29 cents to $3.21 after the U.S. lawmakers negotiate the scope of bailout plan for the company. Treasury Secretary Paulson in a speech today suggested that the U.S. Congress will not be able to use the $700 billion funds for the troubled asset repurchase program. Secretary Paulson has reversed his earlier stance regarding bank bailout several times.

Intrepid Potash, Inc ((IPI)) lost 10.7% or $2.11 to $17.35 despite a sharp increase in its third quarter earnings. Investors worried that recent decline in commodities prices will drag the earnings for current and next few quarters.

JA Solar Holdings Co., Ltd ((JASO)) plunged 22.9% or 76 cents to $2.58 after it reported the quarterly loss.


Kimco Realty Corporation ((KIM)) plunged 10.2% or $1.82 to $17.51 after the Circuit City filed for bankruptcy protection.

ProLogis ((PLD)) lost 16.4% or $1.13 to $5.74 after the world''s largest warehouse developer, said chief executive officer Jeffrey Schwartz resigned. The company suspended dividend and plans to halt current warehouse development projects.