Medtronic, Corning, Saks Drop, RiM Rises

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

Solar panel companies declined after negative comments from JP Morgan. Energy stocks rallied and automakers struggle as lawmakers question executive compensation at big three auto companies. Alpha Natural plunges after takeover bid fails. Medtronic and Saks drops on earning. Corning lowers outlook.

[R]8:20PM New York – Solar panel and technologies companies declined. Energy stocks rallied and automakers struggle as lawmakers question executive compensations.[/R]

Stocks in general were on the decline until a late afternoon rally in energy and tech stocks lifted market indexes. Of the stocks in S&P 500 index, 268 increased, 224 decreased and 8 were unchanged. Of the index stocks, 66 rose more than 3%, 74 fell more than 3%.

Alpha Natural Resources, Inc ((ANR)) declined 20.5% or $5.10 to $19.80 after Cliffs Natural Resources terminated its $2.7 billion takeover of coal producer on tight credit market conditions and falling demand prices of iron ores and other materials.

Atmel Corporation ((ATML)) dropped 4% or 16 cents to $3.83 after ON Semiconductor Corp. and Microchip Technology Inc. abandoned their joint bid to acquire Atmel Corp for $2.3 billon. Microchip is seeking Atmel board restructuring and proposes to nominate slate of directors.

Ctrip.com International, Ltd ((CTRP)) dropped 14% or $3.32 to $20.34 after the travel service provider for hotel accommodations net revenues were RMB370 million for the third quarter of 2008, increased 15% year on year and net income was RMB104 million for the same period year on year.

CIT Group Inc ((CIT)) lost 26% or 89 cents to $2.60 after the commercial lender said that it has commenced the process to raise capital by $1.4 billion by selling shares and swapping some debt in its efforts to become a bank holding company.

Chiquita Brands International Inc ((CQB)) increased 19.8% or $1.83 to $11.06 after BB&T analyst raised the company stocks to ‘Buy’ from ‘Hold” and estimated higher banana sales as more people eat at home in the weak economic environment. European banana prices are 10% higher in the current quarter which will help the company in net sales. Jamaica Produce, the largest banana grower in Jamaica and other farmers suffered devastating crop loss from the Hurricane Gustav.

Corning Incorporated ((GLW)) lost 7% or 62 cents to $8.39 after the largest maker of glass for liquid crystal display televisions lowered its outlook for the fourth quarter, citing declining demand for flat panel television and laptop computers. The company estimated sales to be below the previously estimated range of $1.1 billion to $1.2 billion and earnings to be lower than between 20 cents and 28 cents a share. The company also withdrew its 2009 guidance.

DivX, Inc ((DIVX)) decreased 22.1% or $1.22 to $4.31 after the digital media company, today announced a revision to its revenue and earnings estimates. The company lowered annual revenue 2008 forecast to between $90 million and $92 million from the previous estimate of between $95 million and $97 million. The company also lowered earnings per share estimate to between 49 cents and 51 cents from 58 cents and 60 cents a share. The company also sued Yahoo! for breaching an advertising contract.


DHT Maritime International Ltd ((DHT)) rose 11.5% or 53 cents to $5.15 after it reported third quarter revenues rose 54% to $31 million from $20.1 million a year ago. Net income in the quarter rose 78% to $12.3 million or 31 cents per diluted share compared to net income of $6.9 million or 23 cents per share a year ago.

Evergreen Solar Inc ((ESLR)) fell 9.4% or 30 cents to $2.91 after JP Morgan downgraded the company stock and said that the company will not be able to generate positive cash flow till 2010. Reduced solar subsidies in Europe will hurt the sales and price that solar panel makers are receiving. The analyst recommended First Solar ((FSLR)) and cited that the company is better position to weather the falling prices, difficult demand and lack of European subsidies than Evergreen and Ascent Solar. First Solar stock dropped $5 to $110.

General Motors Corporation ((GM)) dropped 2.8% or 9 cents to $3.09. GM chief executive told the U.S. Senate Committee that he may be back looking for more bailout assistance even after the industry receives $25 billion before the end of the year, if the economy and sales remain weak in the next year.

After prodding from Senator Jon Tester of Montana he showed willingness to lower his total compensation but resisted the call to eliminate his salary till the proposed loan is repaid. Chrysler chief Bob Nardelli said he will be willing to lower his salary to $1 but chief at Ford flat out rejected the question and said it is largely ‘symbolic’ and does not serve any real purpose.

Hewlett-Packard Company ((HPQ)) climbed 14.5% or $4.25 to $33.59 after the personal computer and testing equipment maker reported earnings of $1.03 a share, excluding reorganizing expenses and other costs, beating the $1 a share consensus estimate.

The Home Depot, Inc ((HD)) gained 3.6% or $0.71 to $20.71 after profit declined less than analysts estimated and the company repeated its earnings forecast for the year. The third quarter revenues fell 6% to $17.8 billion from $19 billion a year ago. Net income in the quarter fell 31% to $756 million or 45 cents per diluted share compared to net income of $1.1 billion or 60 cents per share a year ago.

Medtronic, Inc ((MDT)) fell 13.3% or $4.82 to $31.60 after it dropped as low as $30.85 after the medical device maker reported quarterly results that disappointed analysts. The second quarter revenues rose 14% to $3.570 billion from $3.124 billion a year ago. Net income in the quarter fell 14% to $571 million or 51 cents per diluted share compared to net income of $666 million or 58 cents per share, a year ago.

ReneSola Ltd ((SOL)) dropped 18.5% or 76 cents to $3.35 after the solar technology company reported third quarter net revenues rose 197% to $215.8 million from a year ago and increased 25% from the second quarter. However, net earnings rose to $32.4 or 23 cents per share from $23.3 million or 46 cents per share.

Research in Motion Ltd ((RIMM)) rose 11.9% or $5.01 to $47.25 in a rally that lifted tech stocks after Hewlett Packard reported better than expected quarterly earnings.

Saks Inc ((SKS)) dropped 14.6% or 56 cents to $3.29 after it swung to a quarterly loss in the latest quarter. The company reported loss of $42.8 million or 31 cents compared to net income of $21.6 million or 14 cents. The company estimated that promotions and weak sales will erode margins further in the fourth quarter important for the luxury goods retailer.

Yahoo! Inc ((YHOO)) increased 8.7% or $0.92 to $11.55 after the cofounder and chief executive, Jerry Yang, will step down from his position as CEO when a replacement is found. Yang was called to the helm less than two years ago with the intent of putting the company back on a higher growth path. The stock is down by more than 50%.