Pre-Open Movers 8/22: ALO, LEH, CSUN, BCSI Higher; PSUN, AVNXD, PERY, VRGY Lower

August 22, 2008 9:24 AM EDT

StreetInsider.com Pre-Open Movers:

Alpharma Inc. (NYSE: ALO) 41% HIGHER; King Pharmaceuticals offers to buy Alpharma for $33.00 per share in cash. The proposal is not conditioned on financing. King's all-cash proposal represents a 37% premium over the closing price of Alpharma common stock on August 21, 2008, the last trading day prior to public disclosure of King's proposal, a 49% premium over the closing price of Alpharma common stock on August 4, 2008, the date of King's initial written offer to Alpharma, and a premium in excess of approximately 38% over Alpharma's average closing price during the one, three and twelve-month periods ended August 21, 2008. The proposed price implies a total equity value of approximately $1.4 billion for 100% of the fully diluted share capital and an enterprise value of approximately $1.2 billion.

Pacific Sunwear of California, Inc. (Nasdaq: PSUN) 32% LOWER; reports Q2 EPS of $0.06, in-line with the analyst estimate of $0.06. Revenues for the quarter were $312.7 million, versus the consensus of $309.68 million. Same store sales fell 1% during the quarter. Sees Q3 EPS from continuing operations of $0.00-$0.05 and Q3 adj-EPS of $0.11-$0.16. The Street estimate for Q3 is currently $0.23. Baird, Friedman Billings Ramsey and Roth Capital all downgraded the stock to Neutral, Market Perform and Hold, respectively.

Avanex Corp (Nasdaq: AVNXD) 29% LOWER; reports Q4 EPS of $0.11, 6 cents below the analyst estimate of $0.17. Revenues for the quarter were $51.8 million, versus the consensus of $52.35 million. Avanex sees Q1 revenue in the range of $44M to $48M versus consensus of $55.27 million. Also, Merriman Curhan downgraded the stock to Neutral.

Lehman Brothers (NYSE: LEH) 14% HIGHER; Reuters is reporting that Korea Development Bank has said that Lehman is one of its top prospects and the bank may consider buying Lehman. Both companies declined to comment on the rumors.

China Sunergy Co., Ltd. (Nasdaq: CSUN) 13.2% HIGHER; reports Q2 EPS of $0.08, 5 cents better than estimates. Revenues were US$111.6 million vs. $94.74 million consensus. The Company maintains its full year 2008 production target at 125-145 MW, with approximately 55 to 75 MW expected to come from high efficiency cell products.

Perry Ellis International, Inc. (NASDAQ: PERY) 13% LOWER; reports Q2 EPS of $0.06 (ex-items) vs. consensus for $0.02 loss - may not be comparable. For the second quarter of fiscal 2009, total revenues were $193.7 million vs. $197.86 million consensus. The Company confirmed its FY revenue guidance at $910 - $925 million vs. consensus of $933.51 million. However, based on events and increases in ongoing expenses, the Company updated its earnings guidance to the range of $1.67 to $1.72 per fully diluted share from the previously announced $1.95 to $2.00 per fully diluted share. This new range includes the $0.08 non-cash impairment charge for marketable securities incurred this quarter. (Consensus is $2.00)

Blue Coat Systems (Nasdaq: BCSI) 11.7% HIGHER; reports Q1 non-GAAP EPS of $0.16, in-line with the analyst estimate of $0.16. Revenues for the quarter were $102.5 million, versus the consensus of $102.23 million. Sees Q2 sales of $116-$120 million, versus the consensus of $118.50 million and non-GAAP EPS in the range of $0.15-$0.20, versus the Street estimate of $0.20.

Verigy, Ltd. (Nasdaq: VRGY) 8% LOWER; reports Q3 EPS of $0.29, 1 cent better than the analyst estimate of $0.28. Revenues for the quarter were $179 million, versus the consensus of $175.75 million. Sees Q4 sales in the range of $155-$165 million and EPS of $0.12-$0.17. The Street estimates are $179.21 million for sales and $0.31 for EPS. Goldman is out this morning recommending investors pick up the stock on today's weakness. The firm has a $30 price target on Verigy.

Yingli Green Energy Holding Company Limited (NYSE: YGE) 5.2% HIGHER; announced that it has entered into a framework agreement with the local government of a county in Beijing regarding the proposed construction of a 10 MW solar power plant. Under the framework agreement, a wholly-owned subsidiary of Yingli Green Energy and an entity controlled by the county government would establish a new company to construct the plant.

DryShips Inc. (Nasdaq: DRYS) 3.7% LOWER; reports Q2 EPS of $3.60 ex-items, versus the analyst estimate of $4.57. Revenues for the quarter were $302.72 million, versus the consensus of $274 million. DryShips closed yesterday's regular trading session at $73.40. During the past year, DryShips traded from $48.21 to $131.34 range.

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Related Entities

• Lehman Brothers
• Robert W Baird
• Friedman, Billings, Ramsey
• Roth Capital
• Merriman Curhan Ford

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