Paul Kangas' Stocks in the News
Monday, February 05, 2007
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PAUL KANGAS: Wall Street opened in slightly lower ground as investors backed away to study a slew of mergers and acquisitions which we'll detail shortly. After moving just single digits lower early on, the Dow improved to an 11 point gain by noon when the NASDAQ was still off four points. Despite an easing in oil prices and interest rates, caution seemed to be the order of the day as the market went on to close narrowly mixed. The Dow Industrial Average ended up exactly 8.25 points at 12,661.74. But the NASDAQ fell 5.28 ending at 2470.60, while the Standard & Poor's 500 down 1.40 at 1446.99. In the bond market, the 10-year note rose 4/32 to 98 18/32, putting the yield at 4.81 percent. Most active big board issue on 16 million shares SLM Corp (SLM), what we used to call Sallie Mae. This is the student loan company and it's tumbling $4.09 on President Bush's proposal to cut student lender rate subsidies by 50 basis points.
This news had an impact on some other stocks in that area of business, like Nelnet (NNI) down $2.65.
And Student Loan (STU) itself off $11.85.
Back to the active list, AT&T (T) down $0.33.
Followed by General Electric (GE) with a dime gain.
Same story with Ford Motor Co (F).
And Pfizer (PFE) edged up $0.08 a share, fifth in volume.
Wells Fargo & Co (WFC) down $0.17.
ExxonMobil (XOM) a $0.13 gain.
LSI Logic (LSI) down $0.14.
There you see Triad Hospitals (TRI) up $6.38. As you heard, it's going private for $50.25 a share.
And Time Warner (TWX), tenth in volume, lost $0.20 a share.
Wal-Mart Stores (WMT) edging $0.44 higher. The company estimates its January same store sales were up 2.2 percent, better than the first estimate of a 1 to 2 percent gain. That was by the company.
Herbalife Ltd (HLF) jumping $7.02. Whitney, a private equity group is offering $38 a share on a buyout. It looks like somebody thinks they're going to have to go higher.
Hanover Compression (HC) up $3.50. The board has approved a merger with Universal Compression Holdings. Hanover shareholders will own 53 percent of the new company and incidentally, Universal Compression stock today was up $10 to close at $71.10 a share.
Longview Fibre (LFB), the timberland company, a $3.44 gain there. Brookfield Asset Management will acquire the firm for $24.75 a share in cash.
And The Mills Corp (MLS) as we touched on earlier, up $3.72. Simon Properties Group and Fairlawn Capital Management bidding $24. That's higher than Brookfield's $21 a share bid, looks like a little war going on there.
Lear Corp (LEA) up $3.97. Carl Icahn as you heard is offering $36 a share to buy all the shares he doesn't own that are outstanding.
Newmarket (NEU) which is in the chemical additives business, after the close Friday reported sharply lower fourth quarter earnings, $0.26 versus $0.64 last year.
And Regal-Beloit (RBC) which makes electric motors and things like that down $4.09. Fourth quarter earnings a bit higher, $0.68 versus last year's $0.63, just in line with estimates but the sales in the last three months have dropped 2 1/2 percent and some investors didn't like that idea.
Lexmark Intl (LXK) off $1.33. UBS Financial downgraded it from "neutral" to "reduce."
On the other hand, we see Kindred Healthcare (KND) moving up $1.61. Stiefel (ph) Nicholas brokerage upgraded it from "hold" to a "buy."
Big board volume leader Google (GOOG) plunging $14.34. There's a considerable amount of concern about growing competition from European telephone service providers over there.
Microsoft (MSFT) $0.58 loss. A "Barron's" article this week cast doubt upon the success potential of the company's new Vista operating system.
Apple (AAPL), there you see down $0.81.
And Cisco Systems (CSCO) $0.37 gain.
Research in Motion (RIMM) up nearly $4. That was fifth in volume.
Then Investors Financial Services (IFIN) up $12.85. You already heard that that's a buyout and for about $65 a share incidentally.
Intel (INTC) $0.16 gain.
Rambus (RMBS) moved up $4.58. The Federal Trade Commission issued a preliminary ruling allowing the company to collect royalties with limits.
Dell (DELL) $0.38 gain.
And Qualcomm (QCOM) $0.72 rise there, tenth in volume.
Cognizant Tech Solutions (CTSH) up $7.12. Fourth quarter earnings, $0.46 up from $0.39 last year and $0.03 above the Street estimate.
Major loser Columbia Laboratories (CBRX) tumbling $3.13. The company is pulling the plug on developing a progesterone gel, major loss in the stock.
Those are the stocks in the news tonight.
