MGM, Mirage, GT Solar, BankUnited Plunge

Mayank Mehta
13 May, 2009
New York City

Dr Pepper Snapple Group led gainers in the S&P 500 index with a rise of 6.4 %. Applied Materials, Inc says net losses will continue. BMC Software, Inc fourth quarter net falls. Dr Pepper Snapple Group, Inc first quarter profit climbs. MGM Mirage files to raise $2.5 billion and repay $1.7 in debt.

[R]12:55PM New York – Dr Pepper Snapple Group, Inc led gainers in the S&P 500 index with a rise of 6.4 %. Applied Materials, Inc says net losses will continue. BMC Software, Inc fourth quarter net falls. Dr Pepper Snapple Group, Inc first quarter profit climbs. MGM Mirage files to raise $2.5 billion and repay about $1.8 billion in debt.[/R]

Of the stocks in S&P 500 index, 42 increased, 456 declined and 2 were unchanged.

Office Depot, Inc led the decliners in the S&P 500 index of 13.6% followed by losses in Office Depot, Inc of 12.0%, in Huntington Bancshares Incorporated of 11.7%, in General Motors Corporation of 10.4% and in Genworth Financial, Inc of 10.3%.

Dr Pepper Snapple Group, Inc led gainers in the S&P 500 index with a rise of 6.4 % followed by gains in Advanced Micro Devices, Inc of 2.9%, in Merck & Co., Inc of 3.6% and Pfizer Inc of 3.5%.

MGM in $2.5 Billion Offering

MGM Mirage ((MGM)) plunged 17% or $2.12 to $10.29 after it said in a regulatory filing that the casino operator will amend debt covenants, sell stock in public offering and in private placement to raise $2.5 billion.

The company plans to sell 81 million shares in public offering and raise $1 billion and sell secured notes offering of $1.5 billion in two tranches due in 2014 and 2017. The company plans to repay outstanding amount of $750 million in senior notes and redeem bonds due in 2009 and 2017 of $1.04 billion.

In the common stock public offering the company plans raise gross proceeds of $1 billion and 8 million shares will be purchased by Tracinda Corporation, the largest shareholder in the company with 53.8% stake.

Merrill Lynch, Morgan Stanley, JP Morgan and Deutsche Bank are leading the underwriting team.

Other Movers

Antares Pharma, Inc ((AIS)) decreased 5.6% or 0.030 cents to $0.500 after the biotechnology company reported first quarter revenues rose 82% to $2.0 million from $1.1 million a year ago. Net loss in the quarter was $2.7 million or 4 cents per diluted share compared to net loss of $3.5 million or 5 cents per share a year ago.

Applied Materials, Inc ((AMAT)) declined 2.4% or 28 cents to $11.20 after the electronic chip manufacturing equipment maker said second quarter revenues fell 53% to $1.02 billion from $2.15 billion a year ago. Net loss in the quarter was $255.4 million or 19 cents per diluted share compared to net income of $302.5 million or 22 cents per share a year ago.

Allianz SE ((AZ)) fell 8.5% or 89 cents to $9.58 after the Europe’s biggest insurer said first quarter revenues rose 2.8% to €27.7 billion from €27.0 billion a year ago. Net profit in the quarter fell 97% to €29 million or €0.04 per diluted share compared to net profit of €1.15 billion or €2.48 per share a year ago.

BankUnited Financial Corporation ((BKUNA)) plunged 28.1% or 45 cents to $1.15 after the home lender may need $1 billion in total risk-based capital to meet regulatory requirements at the end of March, the company said in a filing with the SEC. The company reported that non-performing loans at the end of the first quarter in March increased to $2.1 billion from $1.8 billion at the end of the quarter ending in December 2008 and $1.3 billion at the end of the quarter ending in September 2008.

BMC Software, Inc ((BMC)) dropped 4.4% or $1.57 to $33.48 after the business software maker said fourth quarter revenues rose 3% to $479.3 million from $466.9 million a year ago. Net income in the quarter fell 14% to $83.3 million or 45 cents per diluted share compared to net income of $97 million or 50 cents per share a year ago.

BB&T Corporation ((BBT)) fell 6.7% or $1.50 to $21.00 after regional bank completed public offering of 75 million common shares priced at $20 a share and raised $1.5 billion.

BioMed Realty Trust, Inc ((BMR)) slumped 9.3% or $1.06 to $10.31 after the real estate investment trust based in San Diego, California planned to sell stock 14 million shares to repay debt.

BMC Software, Inc ((BMC)) declined 6.5% or $2.29 to $32.75 after the maker of programs that manage mainframes and computer servers its fiscal fourth quarter profit declined weighed by charges and a higher income tax provision. The company forecast adjusted earnings of $2.37 to $2.47 per share for fiscal 2010 and bookings and revenue growth in the low single digits.

Cliffs Natural Resources Inc ((CLF)) lost 13.2% or $3.87 to $25.01 after the North America’s largest iron-ore producer said it will slash its dividend to 4 cents from 8.75 cents to save $20 million and sell 12 million shares in public offering and cut salaries of all staff to save $15 million. Cliff Natural will also suspend all company contributions to 401(k) plans for salaried employees.

JP Morgan Securities Inc and Merrill Lynch & Company are acting as joint book managers and are granted over allotment option to sell 1.8 million shares.

Dr Pepper Snapple Group, Inc ((DPS)) added 8.1% or $1.74 to $23.00 after the Texas-based drinks maker reported first quarter revenues fell 3% to $1.26 billion from $1.3 billion a year ago. Net income in the quarter rose 39% to $132 million or 52 cents per diluted share compared to net income of $95 million or 38 cents per share a year ago.

GT Solar International, Inc ((SOLR)) declined 21.6% or $1.56 to $5.66 after the supplier of equipment to solar power manufacturers said its fourth quarter net revenues increased to $138.5 million from $132.2 million and net income of $11.8 million compared to income of $28.5 million. Earnings per share declined to 8 cents from 20 cents a year ago quarter.

The company guided earnings per share for the fiscal year ending on April 3, 2010 between 45 cents and 60 cents a share and revenues between $450 million and $550 million.

Helen of Troy Limited ((HELE)) rose 5.5% or 95 cents to $18.01 after the global marketer of brand-name products reported fourth quarter sales fell 3.8% to $138.6 million from $144.1 million a year ago. Net loss in the quarter was $88.0 million or $2.93 per diluted share compared to net income of $10.3 million or 33 cents per share a year ago.

ING Groep N.V. ((ING)) lost 12.2% or $1.30 to $9.32 after the largest Dutch financial-services company said first quarter net loss in the quarter was €793 million or €0.39 per diluted share compared to net profit of €1.54 billion or €0.74 per share a year ago.

Liz Claiborne, Inc ((LIZ)) slumped 20.1% or $1.16 to $4.62 after the retailer reported 93 cents a share loss compared to a loss of 8 cents a share from continuing operations. Sales in the quarter declined 22% to $780 million from a year ago.

Macy's, Inc ((M)) slid 5.4% or 67 cents to $11.68 after the department store operator first quarter sales fell 11% to $5.12 billion from $5.74 billion a year ago. Net loss in the quarter was $88.0 million or 21 cents per diluted share compared to net loss of $59 million or 14 cents per share a year ago.

The Medicines Company ((MDCO)) plunged 35.0% or $3.91 to $7.23 after the maker of intravenous heart medicines said Wednesday it stopped late-stage testing of cangrelor an anti-clotting drug candidate because it was not meeting its goals in two clinical trials.

Ultrapetrol (Bahamas) Limited ((ULTR)) added 10.6% or 47 cents to $4.90 an industrial transportation company said first quarter revenues fell 14% to $57.8 million from $67.4 million a year ago. Net income in the quarter fell 96.5% to $0.6 million or 2 cents per diluted share compared to net income of $17.3 million or 52 cents per share a year ago.