Morning Movers 10/03: Wachovia (WB) Surges On Wells Fargo Buyout; Salesforce.com (CRM) Lower on Downgrade

October 3, 2008 9:28 AM EDT

StreetInsider.com Morning Movers:

Wachovia (NYSE: WB) 76% HIGHER; Wells Fargo and Wachovia signed a definitive agreement for the merger of the two companies including all of Wachovia's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

General Growth Properties, Inc. (NYSE: GGP) 38% HIGHER; announced the appointment of Edmund Hoyt as the Company's Chief Financial Officer on an interim basis. Mr. Hoyt succeeds Bernard Freibaum, who is no longer employed by the Company. The Company also announced that, given the uncertainty and volatility in the capital markets, and the fact that all distributions currently required to maintain REIT status have already been made this year, the Company's board of directors has determined to suspend the common stock dividend at this time. Such suspension will be reviewed by the Board in the context of the REIT requirements and the Company's ongoing capital position.

National City (NYSE: NCC) 26% HIGHER; Bounces after Wells Fargo's buyout of Wachovia

AIG (NYSE: AIG) 15% HIGHER; Will focus on core businesses and plans to pay back the government loan.

Citigroup Inc. (NYSE: C) 14% LOWER; Wells Fargo buys Wachovia instead of the FDIC-assisted deal with Citi

Regions Financial (NYSE: RF) 10% HIGHER; Bounces after Wells Fargo's buyout of Wachovia

KVH Industries, Inc., (Nasdaq: KVHI) 10% LOWER; sees Q3 sales in the range of $15.6-$16 million, versus the consensus of $19.78 million, taking EPS well below the previous guidance of $0.01-$0.05.

Penn National Gaming (Nasdaq: PENN) 9% LOWER; is reducing its guidance targets for financial results for the 2008 third quarter based on a greater than anticipated impact on gaming revenue related to economic conditions, competition in certain markets and disruption caused by September hurricanes. In addition, the 2008 third quarter results will reflect higher than anticipated lobbying expenses.

MRV Communications (Nasdaq: MRVC) 8% LOWER; has revised previously announced revenue guidance for the third quarter ended September 30, 2008. Based on preliminary information, revenues for the third quarter are expected to be in the range of $127 million to $129 million. This compares to previous guidance for the third quarter of 2008 of $139 million to $144 million.

Wells Fargo & Company (NYSE: WFC) 7% HIGHER; Wells Fargo and Wachovia signed a definitive agreement for the merger of the two companies including all of Wachovia's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Global Payments Inc. (NYSE: GPN) 7% HIGHER; reports Q1 EPS of $0.71, 9 cents better than the analyst estimate of $0.60. Revenues for the quarter were $405.8 million, versus the consensus of $395.73 million. Sees FY08 revs of $1.64-$1.68 billion, versus the consensus of $1.66 billion, and EPS of $2.37-$2.45, versus the consensus of $2.27.

Salesforce.com (NYSE: CRM) 6% LOWER; UBS downgrades to Sell.

AngioDynamics (Nasdaq: ANGO) 6% HIGHER; reports Q1 EPS of $0.09, in-line with the analyst estimate of $0.09. Revenues for the quarter were $44.3 million, versus the consensus of $45.56 million. Reaffirms FY09 sales guidance of $205-$210 million, versus the consensus of $209.47 million. GAAP EPS are expected to be about $0.55.

Adobe Systems Inc. (Nasdaq: ADBE) 5% LOWER; UBS downgrades to Sell

Lawson Software, Inc. (Nasdaq: LWSN) 4.6% LOWER; reports Q1 EPS of $0.05, in-line with the analyst estimate of $0.05. Revenues for the quarter were $190.9 million, versus the consensus of $191.01 million. Sees Q2 non-GAAP EPS in the range of $0.07-$0.10, versus the consensus of $0.09.

CSX Corp. (NYSE: CSX) 2.5% HIGHER; JP Morgan upgrades to Overweight.

Costco Wholesale (Nasdaq: COST) 2% HIGHER; Goldman upgrades to Buy

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• UBS
• JPMorgan
• Citi
• Wachovia
• Dividend

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