Pre-Open Movers 9/25: GE (GE) Lower On Profit Warning, Pilgrim's Pride (PPC) Sinks On Expected Large Loss and Covenant Triggers

September 25, 2008 9:32 AM EDT

StreetInsider.com Pre-Open Movers:

Pilgrim's Pride (NYSE: PPC) 49% LOWER; Continues yesterday's 38% slide after the company said it sees a significant Q4 loss and won't be in compliance with debt covenants. The company attributed the anticipated loss to high feed-ingredient costs, continued weak pricing and demand for breast meat, and the significant negative impact of hedged grain positions during the quarter.

Pharmacopeia (NASDAQ: PCOP) 33% HIGHER; Ligand Pharmaceuticals (NASDAQ: LGND) entered into a definitive merger agreement to acquire Pharmacopeia in a deal valued up to $70 million

TOP Ships Inc. (Nasdaq: TOPS) 25% HIGHER; said this morning that it entered into an exclusivity agreement with an affiliate of George Economou, the Greek shipowner, providing for the exploration by such affiliate of the possible acquisition of the Company at a potential price of $6.00 per share. The exclusivity agreement expires on October 8, 2008. The exclusivity agreement also provides that the Company has agreed to reimburse such affiliate's out of pocket expenses, up to $1.0 million, in certain circumstances. Shares of TOP Ships closd at $3.81 yesterday.

Transmeta Corporation (NASDAQ: TMTA) 20% HIGHER; announced that, with the assistance of its independent financial advisors Piper Jaffray & Co., it has initiated a process to seek a potential sale of the Company. After actively exploring a full range of strategic alternatives over the past few months and after strengthening its balance sheet, Transmeta will now explore a possible sale of the Company as a way to enhance value for all its stockholders. In a separate press release today, the Company announced that it has entered into two agreements with Intel for the licensing of certain Transmeta technologies and intellectual property and for the accelerated payment of its receivables from Intel, which will result in a one-time, non-refundable payment of $91.5 million in the third quarter of 2008.

CRA International, Inc. (NASDAQ: CRAI) 17% LOWER; reports Q3 EPS of $0.32, ex-items, which may not compare to the analyst estimate of $0.88. Revenues for the quarter were $111.2 million, versus the consensus of $124.60 million.

Fannie Mae (NYSE: FNM) 15% HIGHER; Investors' hope there will be something left over for common shareholders.

Washington Mutual Inc. (NYSE: WM) 13% HIGHER; Continued speculation about a sale of the company. The Wall Street Journal is reporting the company has contacted several private equity investors about a deal, including Carlyle Group and Blackstone Group LP. The New York Times reported that federal regulators are moving quickly to broker a deal to get the embattled savings-and-loan sold.

Smithfield Foods Inc. (NYSE: SFD) 10% LOWER; news from Pilgrim's Pride (see above)

Freddie Mac (NYSE: FRE) 9% HIGHER; Investors' hope there will be something left over for common shareholders.

Capital One Financial (NYSE: COF) 6% LOWER; Prices 14 Million Share Offering at $49 Per Share

Sanderson Farms (NASDAQ: SAFM) 6% LOWER; % LOWER; news from Pilgrim's Pride (see above)

Tyson Foods Inc. (NYSE: TSN) 6% LOWER; news from Pilgrim's Pride (see above)

American International Group (NYSE: AIG) 6% HIGHER; recovers some of today's 34% losses.

Boston Scientific (NYSE: BSX) 5% HIGHER' Receives FDA Approval to Market TAXUS Express2 Atom Stent System

GE (NYSE: GE) 5% LOWER; lowered its third quarter EPS guidance to a range of $0.43 to $0.48 per share from $0.50 to $0.54, citing the unprecedented weakness and volatility in the financial services markets.

Nike Inc. (NYSE: NKE) 5% HIGHER; reports Q1 EPS of $1.03, 11 cents better than the analyst estimate of $0.92. Revenues for the quarter were $5.4 billion, versus the consensus of $5.19 billion. Worldwide futures orders up 10%.

UAL Corporation (NASDAQ: UAUA) 3.5% HIGHER; Stifel Nicolaus starts at Buy. The firm also started coverage on AMR Corp (NYSE: AMR), Continental Airlines (NYSE: CAL) and Delta Air (NYSE: DAL) at Buy

Red Hat Inc. (NYSE: RHT) 3% LOWER; reports Q2 EPS of $0.20, 2 cents better than the analyst estimate of $0.18. Revenues for the quarter were $164.4 million, versus the consensus of $163.60 million.

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• Piper Jaffray
• Stifel Nicolaus
• Citi
• The Carlyle Group

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