Alcoa Falls, Satyam Plunges; Monsanto Rises

Mayank Mehta
07 Jan, 2009
New York City

Satyam Computer Services plunged 91% after Chairman resigned and admitted financial irregularity. Alcoa fell more than 10% on a restructuring plan and production cut. Casino stocks fell further on weak consumer spending. Time Warner Inc will record $25 billion of non-cash charge and a loss.

[R]3:10PM New York – Satyam Computer Services plunged 91% after Chairman resigned and admitted financial irregularity. Alcoa fell more than 10% on a restructuring plan and production cut. Casino stocks fell further on weak consumer spending. Time Warner Inc will record $25 billion of non-cash charge and a loss in the fourth quarter 2008.[/R]

Of the stocks in S&P 500 index, 451 declined, 45 increased and 2 were unchanged.

American Capital led decliners in the S&P 500 index with a loss of 18.6%, followed by losses in Office Depot of 15%, in Lincoln National Corp of 13.5%, in JDS Uniphase of 12.6%, in Massey Energy of 12.6% and in 12%.

Monsanto Company led gainers in the index with a rise of 17% followed by increases in Family Dollar of 13.4% in Supervalu Inc of 11%, in Tenet Healthcare of 8% and in XL Capital of 6.6%.

Other Movers

Aetna Inc ((AET)) fell 5.6% or $1.72 to $28.64 after the third- largest U.S. medical benefits provider was downgraded by Goldman Sachs and cited a weakness in earnings on a cyclical downturn in the health insurance industry.

Alcoa Inc ((AA)) plunged 8.6% or $1.05 to $11.06 after the world’s largest aluminum producer announced plan to cut production, eliminate 13,500 jobs and close plants.

AK Steel Holding Corporation ((AKS)) gained 5.7% or 64 cents to $11.82 after the U.S. based steelmaker was upgraded to “buy” from “neutral” by Goldman Sachs.

Constellation Brands, Inc ((STZ)) plunged 10.6% or $1.80 to $15.07 after the world''s largest wine maker reported third quarter sales fell 5.5% to $1.03 billion from $1.09 billion a year ago. Net income in the quarter fell 30% to $83.5 million or 38 cents per diluted share compared to net income of $119.6 million or 55 cents per share a year ago.

The Finish Line, Inc ((FINL)) dropped 9.2% or 55 cents to $5.38 after mall-based specialty retailer in the United States said third quarter revenues fell 4.4% to $256.9 million from $268.7 million a year ago. Net loss in the quarter was $8.84 million or 16 cents per diluted share compared to net loss of $15.95 million or 34 cents per share a year ago. Comparable same store sales decreased 3.6%.

Family Dollar Stores, Inc ((FDO)) added 13.4% or $3.27 to $27.60 after the fastest growing discount retail chains in the United States reported first quarter sales rose 4.2% to $1.75 billion from $1.68 billion a year ago. Net income in the quarter rose 14.3% to $59.3 million or 42 cents per diluted share compared to net income of $51.9 million or 37 cents per share a year ago.

General Motors Corporation ((GM)) rose 4.5% or 18 cents to $4.12 after the biggest U.S. automaker has adequate government loans pledged to cover the worst-case scenario it outlined in December to Congress and will not need more unless the economy worsens, according to Bloomberg News.

Intel Corporation ((INTC)) slid 3.5% or 55 cents to $14.81 after the world’s largest chipmaker said on Wednesday its fourth quarter revenue was likely worse than expected due to weaker global demand for personal computers, dragging its shares down more than 6%. Intel estimated its quarterly revenue was about $8.2 billion, down 23% from a year earlier.

IXYS Corporation ((IXYS)) slid 9.0% or 70 cents to $7.05 after the chipmaker suspended dividends as third quarter sales missed some analysts’ estimates.

Las Vegas Sands Corp ((LVS)) fell 11.4% or 96 cents to $7.44 after the casino company was downgraded from “buy” to “hold” at Deutsche Bank AG.

Monsanto Company ((MON)) rose 14.0% or $10.32 to $83.54 after the world''s biggest seed maker reported first quarter sales rose 29% to $2.65 billion from $2.05 billion a year ago. Net income in the quarter rose 117% to $556 million or $1.00 per diluted share compared to net income of $256 million or 46 cents per share a year ago.

NetScout Systems, Inc ((NTCT)) surged 27.2% or $2.79 to 13.03 after the maker of software to manage computer networks issued 2009 earnings forecast, predicting profit excluding some items of as much as 91 cents a share.

Premier Exhibitions, Inc ((PRXI)) fell 25.5% or 35 cents to $1.02 after the major developer of touring museum quality exhibitions said third quarter revenues fell 20% to $13.5 million from $16.7 million a year ago. Net loss in the quarter was $1.8 million or 6 cents per diluted share compared to net income of $2.7 million or 8 cents per share a year ago.

Satyam Computer Services Ltd ((SAY)), the fourth largest software exporter from India plunged more than 90% after chairman Raju resigned and admitted inflating balance sheet and sales. The company employs 53,000 people and conducts business in 30 countries. The news shocked the Indian investors and main index plunged 7.4%.

Standard Microsystems Corporation ((SMSC)) declined 7.3% or $1.22 to $15.40 after the chipmaker said third quarter revenues fell 19.5% to $84.3 million from $104.7 million a year ago. Net income in the quarter rose 4.6% to $9.1 million or 41 cents per diluted share compared to net income of $8.7 million or 36 cents per share a year ago.

Xyratex Limited ((XRTX)) plunged 19.7% or 55 cents to $2.24 after the provider of enterprise class data storage subsystems and storage process technology said fourth quarter revenues rose 15.1% to $285.4 million from $248 million a year ago. Net loss in the quarter was $63.2 million or $2.17 per diluted share compared to net income of $11.7 million or 39 cents per share a year ago.

Wynn Resorts ((WYNN)) declined more than 10% on the worries that weak consumer spending will lower casino visits.