American Dairy, CardioNet Plunge; Goldman Rises

Mayank Mehta
13 Jul, 2009
New York City

CIT Group led decliners in the S&P 500 index as the company faces prospects of bankruptcy. Expeditors International estimated substantially lower quarter earnings. American Dairy, China based milk powder producer and distributor plunged 40% after the company estimated revenues below expectations.

[R]12:40 PM New York – CIT Group led decliners in the S&P 500 index as the company faces prospects of bankruptcy. Expeditors International estimated substantially lower quarter earnings. American Dairy, China based milk powder producer and distributor plunged after it offered sharply lower revenue guidance for the quarter and the year.[/R]

Of the stocks in S&P 500 index, 218 increased, 277 declined and 5 were unchanged.

CIT Group Inc led the decliners in the S&P 500 index with a loss of 21.5% followed by losses in Expeditors International of Washington, Inc of 9.0%, in Fastenal Company of 6.0%, in Nabors Industries Limited of 3.1% and in Harris Corporation of 2.8%.

American International Group, Inc led gainers in the S&P 500 index with a rise of 12.6% followed by gains in SunTrust Banks, Inc 5.1%, in Marshall & Ilsley Corporation of 4.9% and The Hartford Financial Services Group, Inc of 4.8%.

Other Movers

American Dairy, Inc ((ADY)) plunged 41% to $21.13 after it reported second quarter revenues of $41 million and 2009 revenues between $330 million and $3360 million. The company is one of the largest distributors of milk powder, soybean, rice and walnut products in China.

Bank of America Corporation ((BAC)) added 4.3% or 52 cents to $12.40.

Best Buy Co., Inc ((BBY)) gained 3.0% or 85 cents to $33.62 after the world’s largest electronics retailer was upgraded to “outperform” from “perform” at Oppenheimer.

CapitalSource Inc ((CSE)) lost 3.0% or 12 cents to $4.40 after the lender to small businesses planned a public offering of approximately 17.5 million shares.

CardioNet, Inc ((BEAT)) plunged 30.2% or $2.67 to $6.16 after the maker of wireless heart monitors said that on Friday that it received a letter from Highmark Medicare Services stating effective September 1, 2009. Highmark was adjusting its reimbursement rate for Mobile Cardiac Outpatient Telemetry services to $754 per service. Nearly 250,000 patients are enrolled in the service.

The Charles Schwab Corporation ((SCHW)) added 2.1% or 35 cents to $16.82 after the largest independent brokerage announced the newest addition to its Laudus Funds lineup, the Laudus Growth Investors U.S. large cap growth fund successor to the UBS U.S. large cap growth fund.

CIT Group Inc ((CIT)) declined 21.5% or 41 cents to $1.12 after the financial lender is still negotiating with the U.S. regulators to enhance its liquidity position. The company has retained bankruptcy lawyers.

Expeditors International of Washington, Inc ((EXPD)) the manager of cargo ships dropped 5.2% or $1.72 to $29.94 after it issued quarterly earnings per share estimate between 24 cents and 26 cents.

Fastenal Company ((FAST)) decreased 5.7% or $1.82 to $29.91 after the nuts and bolts distributor reported second quarter sales fell 21% to $474.9 million from $604.2 million a year ago. Net income in the quarter fell 43% to $43.5 million or 29 cents per diluted share compared to net income of $76.2 million or 51 cents per share a year ago.

The Goldman Sachs Group, Inc ((GS)) increased 3.4% or $4.88 to $146.78 on analyst speculation that the investment banker and proprietary traded will report record earnings in the second quarter.

Hoku Scientific, Inc ((HOKU)) plunged 14.0% or 32 cents to $1.96 after the maker of fuel cell and solar power components said that in addition to seeking debt and equity alternatives it had retained Deutsche Bank Securities, Inc. as its financial advisor to seek a possible sale of the company.

iBasis, Inc ))IBAS)) surged 23% to $1.60 after it received a letter of interest from its shareholder Royal KPN to acquire the remaining shares that it does not own for $1.55 a share. The telecom carrier controls 56% of the wholesale telecom service provider.

Intrepid Potash, Inc ((IPI)) fell 7.7% or $1.81 to $21.67 after the fertilizer maker was downgraded to “underperform” from “outperform” at Oppenheimer.

OSI Pharmaceuticals, Inc ((OSIP)) climbed 9.0% or $2.55 to $31.00 after the drugmaker today announced that Saturn a pivotal Phase III study of Tarceva ( for lung cancer therapy) met a key secondary endpoint of extending overall survival in patients with advanced non-small cell lung cancer who received Tarceva immediately after initial chemotherapy.

RSC Holdings Inc ((RRR)) the construction equipment rental company advanced 6.5% or 39 cents to $6.39.

SanDisk Corporation ((SNDK)) added 4.5% or 66 cents to $15.13 after the largest maker of flash memory cards was upgraded from “market weight” to “overweight” at Thomas Weisel.

State Street Corporation ((STT)) the largest money manager for institutions gained 3.1% or $1.38 to $45.04.