Blockbuster Plunges; Polycom, Somanetics Rise

Mayank Mehta
17 Mar, 2010
New York City

Blockbuster plunged after the company may file for a bankruptcy protection. Fuqui International, Inc, the jeweler said it will miss its quarterly earnings target. Polycom, Inc surged 8% on a speculation that it may be seeking a buyer.

[R]12:15 PM New York – Citrix Systems, Inc led the decliners in the S&P 500 index with a loss of 1.5%. Blockbuster plunged after the company may file for a bankruptcy protection. Fuqui International, Inc, the jeweler said it will miss its quarterly earnings target. Polycom, Inc surged 8% on a speculation that it may be seeking a buyer.[/R]

Of the stocks in S&P 500 index, 382 increased, 108 declined and 10 were unchanged.

Citrix Systems, Inc led the decliners in the S&P 500 index with a loss of 1.5% followed by losses in Motorola, Inc of 1.3% and in Meredith Corporation of 0.9%, in Mead Johnson Nutrition Company of 0.9% and in UnitedHealth Group Incorporated of 0.9%.

LSI Corporation led gainers in the S&P 500 index with a rise of 9.1% followed by gains in Massey Energy Company 5.8%, in The Hartford Financial Services Group, Inc of 4.9% and in Lincoln National Corporation 4.3%.

Other Movers

AAR Corp ((AIR)) decreased 1.9% or 50 cents to $25.14 after the provider of parts and maintenance services said third quarter sales fell 8.6% to $309.6 million from $338.8 million a year ago. Net income in the quarter fell 42.4% to $9.9 million or 26 cents per diluted share compared to net income of $17.2 million or 43 cents per share a year ago.

A.C. Moore Arts & Crafts, Inc ((ACMR)) fell 0.1% to $2.80 after the specialty retailer of arts, crafts and floral merchandise reported fourth quarter sales fell 9.3% to $149.7 million from $165.0 million a year ago. Net loss in the quarter was $537,000 or 2 cents per diluted share compared to net loss of $13.0 million or 64 cents per share a year ago.

Actuant Corporation ((ATU)) added 3.7% or 73 cents to $20.28 after the manufacturer of a range of industrial products and systems reported second quarter sales rose 0.1% to $294.2 million from $293.8 million a year ago. Net income in the quarter rose 125% to $7.2 million or 10 cents per diluted share compared to net income of $3.2 million or 6 cents per share a year ago.

American International Group, Inc ((AIG)) the insurer rose 2.3% or 79 cents to $34.41 and the insurance company tapped $2.2 billion of credit facility with the U.S. Treasury to capitalize its core property and casualty operation.

AMR Corporation ((AMR)) the airline industry rose 0.5% or 5 cents to $9.71.

Blockbuster Inc ((BBI)) the video retail stores chain plunged 27.6% or 11 cents to $0.29 as it considers bankruptcy.

BlackRock, Inc ((BLK)) climbed 3.2% or $6.84 to $219.19 after the money manager was upgraded to “outperform” from “neutral” at Credit Suisse.

CIT Group Inc ((CIT)) the commercial lender rose 3.3% or $1.22 to $37.51.

Discover Financial Services ((DFS)) declined 1.5% or 23 cents to $15.07 after the credit card issuer said first quarter net interest income fell 2.5% to $1.15 billion from $1.18 billion a year ago. Net loss in the quarter was $122.2 million or 22 cents per diluted share compared to net loss of $196.3 million or 41 cents per share a year ago.

Diamond Offshore Drilling, Inc ((DO)) fell 0.1% or 16 cents to $88.16 after the deepwater oil driller was downgraded to “underperform” from “neutral” at Credit Suisse.

FactSet Research Systems Inc ((FDS)) rose 3.1% or $2.27 to $73.89 after the provider of financial research and analytics said second quarter revenues rose 0.5% to $157.3 million from $156.5 million a year ago. Net income in the quarter rose 4.3% to $36.1 million or 75 cents per diluted share compared to net income of $34.6 million or 71 cents per share a year ago.

Focus Media Holding Limited ((FMCN)) gained 7.7% or $1.30 to $18.07 after the Chinese outdoor-advertising company said fourth quarter sales $144.3 million from $156.3 million a year ago.

Fuqi International, Inc ((FUQI)) the jewelry maker plunged 27.3% or $5.20 to $13.80 after the company said it will miss its fourth quarter earnings estimate and delay the filing of its annual report.

Genworth Financial, Inc ((GNW)) rose 1.0% or 18 cents to $16.73 after the mortgage and life insurer was downgraded to “neutral” from “buy” at Bank of America Corp.

The Hartford Financial Services Group, Inc ((HIG)) fell 1.6% or 44 cents to $26.82 after the bailed-out insurer announced that, after consultation with the Office of Thrift Supervision, it is conducting a public offering of equity and debt securities as part of a plan to fully repurchase the $3.4 billion of preferred shares issued to the U.S. Treasury under the Capital Purchase Program.

LifePoint Hospitals, Inc ((LPNT)) fell 1.4% or 51 cents to $34.39 after the operator of general acute-care centers said it plans to repurchases of up to $70 million of its common stock on or before May 7, 2010.

Lincoln National Corporation ((LNC)) increased 4.4% or $1.27 to $29.75 after the insurer was upgraded to “buy” from “neutral at Bank of America.

Massey Energy Company ((MEE)) dropped 2.1% or $1.08 to $49.14 after the coal producer announced that it has signed a definitive agreement to purchase Cumberland Resources Corporation and its affiliated companies for $960 million in a combined cash and stock transaction.

Polycom, Inc ((PLCM)) surged 8% to $33.01 after Financial Times said that the company is in negotiation with Apax Partners to take it private for $3 billion. 123jump.com confirmed the talks but views that the deal is highly unlikely above $27 a share price. 2009 sales of the videoconferencing company decreased 9.5% to $967 million.

Schiff Nutrition International, Inc ((WNI)) surged 12.9% or $1.18 to $10.28 after the distributor of branded and private label vitamins and nutritional supplements reported third quarter sales rose 7% to $53.3 million from $49.9 million a year ago. Net income in the quarter rose 58% to $5.7 million or 20 cents per diluted share compared to net income of $3.6 million or 13 cents per share a year ago.

Somanetics Corporation ((SMTS)) increased 6.6% or $1.16 to $18.64 after the manufacturer of non-invasive patient monitoring system reported first quarter revenues rose 18% to $13.1 million from $11.1 million a year ago. Net income in the quarter rose 54% to $2.0 million or 16 cents per diluted share compared to net income of $1.3 million or 10 cents per share a year ago.

StanCorp Financial Group, Inc ((SFG)) dropped 3.0% or $1.45 to $45.94 after the provider of insurance and retirement plans was downgraded to “underperform” from “buy” at Bank of America.

Sterling Bancorp ((STL)) fell 0.1% or 1 cent to $8.30 after the lender was upgraded to “outperform” from “market perform” at BMO Capital Markets.

Teekay Offshore Partners L.P ((TOO)) dropped 5.1% or $1.05 to $19.45 after the owner of oil tankers announced that it plans to offer 4.4 million common units, representing limited partner interests, in a public offering.

TD Ameritrade Holding Corporation ((AMTD)) fell 1.2% or 23 cents to $18.57 after the online broker said an average of 347,000 client trades per day in February 2010, up 13% from February 2009 and down 18% from January 2010.

Unum Group ((UNM)) added 2.3% or 54 cents to $24.71 after the provider of group disability and special risk insurance was upgraded to “buy” from “underperform at Bank of America.