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What Are the Implications of ANR Buying Massey Energy?

ANR logoAlpha Natural Resources (ANR - option chain) stock is trading lower today after the company announced over the weekend that it will acquire Massey Energy (MEE) in a $7.1 billion cash and stock deal. Under the deal, MEE shareholders will receive 1.025 shares of ANR plus $10 in cash for each MEE share held. Since this deal values MEE about 10% higher than its closing price from Friday, ANR stock is headed lower since it is essentially overpaying to buy Massey.

This kind of movement is typical of a buyout situation, and ANR would not enter the deal if they didn't think it was a good idea in the long-term. However, the short-term is a different story, and if you think this stock won't be rising too far in the coming months, then it could be a good time to look at a short-term bearish hedged play on ANR.

Continue reading What Are the Implications of ANR Buying Massey Energy?

Sanofi-Aventis Breast Cancer Drug Fails

SNY logoSanofi-Aventis (SNY - option chain) stock is trading lower today after the company said last night that its experimental breast cancer treatment iniparib failed to meet its goal in a Phase 3 study. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SNY.

This morning, SNY opened at $33.83. So far today the stock has hit a high of $34.01 and a low of $33.29. As of 12:30, SNY is trading at $33.41, down $1.84 (-5.2%). The chart for SNY looks bullish and S&P gives SNY a positive 4 STARS (out of 5) buy ranking.

Continue reading Sanofi-Aventis Breast Cancer Drug Fails

CA Reports Soft Earnings and Weak Outlook

CA Technologies logoCA Technologies (CA) - option chain) stock is trading lower today after the company announced Q3 2011 earnings results after the market close yesterday. CA reported EPS of 0.39, up from 0.34 in the same quarter last year but well below the consensus target of 0.49. Also, the company warned of weak renewals. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CA.

This morning, CA opened at $24.19. So far today the stock has hit a high of $24.40 and a low of $23.18. As of 12:40, CA is trading at $23.32, down $2.04 (-8.0%). The chart for CA looks neutral and S&P gives CA a neutral 3 STARS (out of 5) hold ranking.

Continue reading CA Reports Soft Earnings and Weak Outlook

American Express Drops on Weak Q2 Guidance

AXP logoAmerican Express (AXP - option chain) stock is trading lower today after the company announced it expects to report fiscal-Q4 earnings of 94 cents per share, excluding one-time items. Analysts have forecast a profit of 95 cents per share. AXP also said it will record one-time charges totaling $113 million, related to restructuring and other changes. AXP will report full quarterly results on Monday, January 24. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AXP.

This morning, AXP opened at $45.20. So far today the stock has hit a high of $45.70 and a low of $44.80. As of 12:15, AXP is trading at $45.17, down $1.20 (-2.6%). The chart for AXP looks bullish and S&P gives AXP a positive 4 STARS (out of 5) buy ranking.

Continue reading American Express Drops on Weak Q2 Guidance

Merck Ends Blood Clot Drug Study

MRK logoMerck (MRK - option chain) stock is trading lower today after the company said it has ended a clinical study for its cardiovascular drug Vorapaxar in patients with acute coronary syndrome. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MRK.

This morning, MRK opened at $35.59. So far today the stock has hit a high of $35.78 and a low of $34.55. As of 12:15, MRK is trading at $34.63, down $2.52 (-6.8%). The chart for MRK looks bullish and S&P gives MRK a positive 4 STARS (out of 5) buy ranking.

Continue reading Merck Ends Blood Clot Drug Study

LeapFrog Takes a Nosedive on Weak FY Forecast

LeapFrog (LF) logoLeapFrog Enterprises (LF) plummeted more than 25% this morning, after the company warned that its full-year earnings will fall below Wall Street's expectations. The maker of educational toys expects to bank a profit of 3 cents to 6 cents per share for fiscal 2010, way below analysts' consensus estimate of 28 cents per share.

"After a solid start to the holiday season, demand softened late in the quarter relative to our expectations," explained CEO Bill Chiasson. "While sales of interactive reading products continued to grow at retail, the growth was less than we had forecasted and contributed to lower earnings growth than expected."

Continue reading LeapFrog Takes a Nosedive on Weak FY Forecast

AMD CEO Steps Aside Suddenly

AMD logoAdvanced Micro Devices (AMD - option chain) stock is trading lower today after the company announced the resignation of CEO Dirk Meyer, naming Thomas Seifert interim CEO. Investors are surprised by this announcement, since Meyer took over AMD when the company was floundering and has since stabilized AMD. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AMD.

This morning, AMD opened at $8.77. So far today the stock has hit a high of $8.80 and a low of $8.35. As of 12:25, AMD is trading at $8.49, down $0.70 (-7.6%). The chart for AMD looks neutral and S&P gives AMD a neutral 3 STARS (out of 5) hold ranking.

Continue reading AMD CEO Steps Aside Suddenly

Canadian Natural Resources Shuts Down Plant After Fire

CNQ logoCanadian Natural Resources (CNQ - option chain) stock is trading lower today after the company announced it has halted crude oil production at its Horizon oil-sands plant in Alberta, Canada, after a fire broke out in a plant facility Thursday. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CNQ.

This morning, CNQ opened at $40.61. So far today the stock has hit a high of $41.84 and a low of $40.42. As of 12:15, CNQ is trading at $41.15, down $1.95 (-4.5%). The chart for CNQ looks bullish and S&P gives CNQ a positive 4 STARS (out of 5) buy ranking.

Continue reading Canadian Natural Resources Shuts Down Plant After Fire

The Gap Plunges on Lackluster December Sales

Gap (GPS) logoA parade of retailers have stepped up Thursday morning to unveil their December sales results, including The Gap Inc. (GPS). The jeans giant confessed to an unexpected 3% decline in same-store sales for the month, falling well short of analysts' expectations for an increase of 2.6%.

Gap North America was hit hardest, with same-store sales tumbling 8% for the month. The only business segment to record a gain for December was Banana Republic North America, as same-store sales improved 1%.

Continue reading The Gap Plunges on Lackluster December Sales

Family Dollar Misses Q1 Earnings, Issues Weak Q2 Forecast

Family Dollar (FDO) logoFamily Dollar Stores (FDO - option chain) stock is trading lower today after the company reported Q1 earnings this morning, posting a profit of $74.32 million, or 58 cents per share, on revenue of $2.00 billion. Analysts had forecast a profit of 61 cents per share on revenue of $1.98 billion. FDO also forecast Q2 earnings of 92 to 97 cents per share, below analysts' forecasts of $1.00 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on FDO.

This morning, FDO opened at $45.18. So far today the stock has hit a high of $46.19 and a low of $44.85. As of 12:30, FDO is trading at $45.27, down $4.04 (-8.2%). The chart for FDO looks bullish and S&P gives FDO a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Family Dollar Misses Q1 Earnings, Issues Weak Q2 Forecast

Annaly Drops After Pricing Public Offering

NLY logoAnnaly Capital Management (NLY - option chain) stock is trading lower today after the company priced a public offering of 75.0 million common shares at $17.20 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on NLY.

This morning, NLY opened at $17.42. So far today the stock has hit a high of $17.45 and a low of $17.31. As of 12:05, NLY is trading at $17.41, down $0.46 (-2.6%). The chart for NLY looks neutral and S&P gives NLY a neutral 3 STARS (out of 5) hold ranking.

Continue reading Annaly Drops After Pricing Public Offering

Clorox Dips on Disappointing Q2 Guidance

Clorox Company (CLX) logoClorox (CLX - option chain) stock is trading lower today after the company said this morning it expects fiscal-Q2 sales to decline 3% to 4% compared to Q1. That translates to sales of $1.215 to $1.228 billion, compared to Q1 revenue of $1.266 billion. CLX also forecast adjusted earnings of 57 to 63 cents per share. Analysts have forecast a profit of 73 cents per share on revenue of $1.19 billion. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CLX.

This morning, CLX opened at $61.58. So far today the stock has hit a high of $61.79 and a low of $60.56. As of 12:15, CLX is trading at $61.32, down $1.96 (-3.1%). The chart for CLX looks neutral and S&P gives CLX a neutral 3 STARS (out of 5) hold ranking.

Continue reading Clorox Dips on Disappointing Q2 Guidance

Alimera Sciences Plummets on FDA Decision

FDA logoBiopharmaceutical firm Alimera Sciences (ALIM) is considerably lower Monday (more than 16% at the time of writing) thanks to news that regulators have declined to approve it treatment for retinal swelling. The FDA sent Alimera a Complete Response Letter (CRL) regarding the New Drug Application (NDA) for Alimera's investigational drug ILUVIEN saying that it can not approve the drug in its current form. While the CRL didn't request new studies, it asked for analyses of the safety and efficacy data through month 36 of the FAME Study - which includes exploratory analyses and those previously submitted to the FDA. These analyses will be done to further assess the benefits and risks of ILUVIEN. The original New Drug Application (NDA) only included data through 24 months.

Continue reading Alimera Sciences Plummets on FDA Decision

The Phone Is off the Hook in Europe

It has become a European tradition that the government owned airlines and phone companies are often "bossed" around by the politicians who have kept anything but an arm's length relationship when it comes to decision making. Many European countries hold ownership shares in the industries' major players, and it is very common for these governments -- including sometimes even their heads of state -- to meddle and interfere in their business affairs. Then, when there's even a whiff of economic endangerment, they run for the hills.

Continue reading The Phone Is off the Hook in Europe

Cumberland Pharma Plummets After FDA Rejection

Cumberland Pharmaceuticals (CPIX) logoShares of Cumberland Pharmaceuticals (CPIX) are having a rough go of it after the Food and Drug Administration (FDA) outlined some concerns that will further delay a ruling on its liver drug. The regulatory agency already postponed its decision from August to December, and now the FDA says it needs additional data before it can recommend the drug for approval.

In its complete response letter to Cumberland, the FDA noted insufficient evidence to prove that the injectable drug, Acetadote, is effective in all patients. Cumberland said it plans to meet with the FDA soon to address the outstanding issues.

Continue reading Cumberland Pharma Plummets After FDA Rejection

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Symbol Lookup
IndexesChangePrice
DJIA-73.1112,369.38
NASDAQ-34.902,778.79
S&P 500-9.641,295.22

Last updated: May 20, 2012: 11:52 PM

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