Unusual 11 Mid-Day Movers 12/23: BXC, SCOP, EMAG, CMLS Higher; KV, AM, WFSL, TXT Lower
BlueLinx Holdings Inc. (NYSE: BXC) 42.9% HIGHER; announced its Board of Directors has authorized a program to repurchase up to $10 million of the Company's common stock over the next two years.
Scopus Video Networks Limited (NASDAQ: SCOP) 40.1% HIGHER; Harmonic Inc. (NASDAQ: HLIT) and Scopus today announced the signing of a definitive agreement pursuant to which Harmonic will acquire Scopus. The acquisition will extend Harmonic's worldwide customer base and strengthen its market and technology leadership, particularly in international video broadcast, contribution and distribution markets. Under the terms of the definitive agreement, which has been approved by the Board of Directors of both companies, Harmonic will pay $5.62 in cash for each outstanding share of Scopus, representing an enterprise value of approximately $51 million, net of Scopus' cash and short-term investments.
KV Pharmaceutical (NYSE: KV-A) 38% LOWER; has advised the U.S. FDA that, effective midnight Dec. 19, 2008, the company voluntarily suspended all shipments of all FDA approved drug products in tablet form. This action is being taken as a precautionary measure to allow KV to expeditiously review and enhance comprehensively the company's manufacturing and quality systems, and to implement efficiency improvements in its production facilities. KV is keeping the FDA informed about the company's plans.
American Greetings Corporation (NYSE: AM) 34.8% LOWER; reports Q3 EPS of $0.20, versus the analyst estimate of $0.52. Revenue for the quarter was $454.1 million, versus the consensus of $474.50 million. As a result of the rapid changes in the economy and the uncertainty of the impact those changes will have on the business, the potential for additional retail store closures, and the finalization of the goodwill impairment tests, the Company is currently unable to provide definitive earnings guidance for the balance of this fiscal year.
Emageon Inc. (Nasdaq: EMAG) 30.8% HIGHER; today announced that it received a letter Monday evening from Health Systems Solutions, Inc. (OTCBB: HSSO) indicating that it is prepared to move forward to close the parties' pending merger.
Washington Federal (Nasdaq: WFSL) 24.6% LOWER; last night after the close cut its dividend from $0.21 to $0.05.
Cumulus Media (Nasdaq: CMLS) 21.7% HIGHER; in a Form 8-K, Cumulus announced that on Dec. 11 it borrowed $75 million from its existing credit facility, using the proceeds to make an investment in equity interests in Cumulus Broadcasting, LLC. The stock may also be seeing upside today as Moody's downgraded Sirius XM's (Nasdaq: SIRI) credit rating to "Ca".
Textron Inc. (NYSE: TXT) 18.5% LOWER; announced that it plans to eliminate 2,200 jobs and also cut its Q4 EPS guidance from $0.80-$0.90 to $0.30-$0.40. Click here for the full report.
Ford (NYSE: F) 16.2% LOWER; Moody's Investors Service lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company (NYSE: F) to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. Moody's said the downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors (NYSE: GM) and Chrysler are likely to achieve as a result of the recently-approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes.
Red Hat (NYSE: RHT) 9.9% HIGHER; reported Q3 EPS of $0.24, ex-items, 6 cents better than the analyst estimate of $0.18. Revenue for the quarter was $165.3 million, versus the consensus of $166.40 million. For Q4, Red Hat sees revenues of $166-$167.5 million, versus the consensus of $172.6 million, and EPS of $0.19-$0.20, versus the consensus of $0.19.
ProLogis (NYSE: PLD) 8.6% HIGHER; announced the signing of a binding agreement to sell its operations in China and property fund interests in Japan, to affiliates of GIC Real Estate (GIC RE), the real estate investment company of the Government of Singapore Investment Corporation, for total cash consideration of $1.3 billion, plus liabilities assumed as part of the transaction. The net proceeds will be used to reduce debt. Overall, the company expects to record a modest net loss on the transaction of approximately 4 to 6 percent of the book value of the assets sold. ProLogis' development pipeline as of September 30, 2008 will be reduced by $1.0 billion, including $255 million in costs to complete development of the assets owned directly and within Prologis' development joint ventures in China. The company expects to close the transaction in January 2009, subject to fulfillment of conditions precedent.
To get this report daily visit http://www.streetinsider.com/entities/Unusual+11+Mid-Day+Movers.
Scopus Video Networks Limited (NASDAQ: SCOP) 40.1% HIGHER; Harmonic Inc. (NASDAQ: HLIT) and Scopus today announced the signing of a definitive agreement pursuant to which Harmonic will acquire Scopus. The acquisition will extend Harmonic's worldwide customer base and strengthen its market and technology leadership, particularly in international video broadcast, contribution and distribution markets. Under the terms of the definitive agreement, which has been approved by the Board of Directors of both companies, Harmonic will pay $5.62 in cash for each outstanding share of Scopus, representing an enterprise value of approximately $51 million, net of Scopus' cash and short-term investments.
KV Pharmaceutical (NYSE: KV-A) 38% LOWER; has advised the U.S. FDA that, effective midnight Dec. 19, 2008, the company voluntarily suspended all shipments of all FDA approved drug products in tablet form. This action is being taken as a precautionary measure to allow KV to expeditiously review and enhance comprehensively the company's manufacturing and quality systems, and to implement efficiency improvements in its production facilities. KV is keeping the FDA informed about the company's plans.
American Greetings Corporation (NYSE: AM) 34.8% LOWER; reports Q3 EPS of $0.20, versus the analyst estimate of $0.52. Revenue for the quarter was $454.1 million, versus the consensus of $474.50 million. As a result of the rapid changes in the economy and the uncertainty of the impact those changes will have on the business, the potential for additional retail store closures, and the finalization of the goodwill impairment tests, the Company is currently unable to provide definitive earnings guidance for the balance of this fiscal year.
Emageon Inc. (Nasdaq: EMAG) 30.8% HIGHER; today announced that it received a letter Monday evening from Health Systems Solutions, Inc. (OTCBB: HSSO) indicating that it is prepared to move forward to close the parties' pending merger.
Washington Federal (Nasdaq: WFSL) 24.6% LOWER; last night after the close cut its dividend from $0.21 to $0.05.
Cumulus Media (Nasdaq: CMLS) 21.7% HIGHER; in a Form 8-K, Cumulus announced that on Dec. 11 it borrowed $75 million from its existing credit facility, using the proceeds to make an investment in equity interests in Cumulus Broadcasting, LLC. The stock may also be seeing upside today as Moody's downgraded Sirius XM's (Nasdaq: SIRI) credit rating to "Ca".
Textron Inc. (NYSE: TXT) 18.5% LOWER; announced that it plans to eliminate 2,200 jobs and also cut its Q4 EPS guidance from $0.80-$0.90 to $0.30-$0.40. Click here for the full report.
Ford (NYSE: F) 16.2% LOWER; Moody's Investors Service lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company (NYSE: F) to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. Moody's said the downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors (NYSE: GM) and Chrysler are likely to achieve as a result of the recently-approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes.
Red Hat (NYSE: RHT) 9.9% HIGHER; reported Q3 EPS of $0.24, ex-items, 6 cents better than the analyst estimate of $0.18. Revenue for the quarter was $165.3 million, versus the consensus of $166.40 million. For Q4, Red Hat sees revenues of $166-$167.5 million, versus the consensus of $172.6 million, and EPS of $0.19-$0.20, versus the consensus of $0.19.
ProLogis (NYSE: PLD) 8.6% HIGHER; announced the signing of a binding agreement to sell its operations in China and property fund interests in Japan, to affiliates of GIC Real Estate (GIC RE), the real estate investment company of the Government of Singapore Investment Corporation, for total cash consideration of $1.3 billion, plus liabilities assumed as part of the transaction. The net proceeds will be used to reduce debt. Overall, the company expects to record a modest net loss on the transaction of approximately 4 to 6 percent of the book value of the assets sold. ProLogis' development pipeline as of September 30, 2008 will be reduced by $1.0 billion, including $255 million in costs to complete development of the assets owned directly and within Prologis' development joint ventures in China. The company expects to close the transaction in January 2009, subject to fulfillment of conditions precedent.
To get this report daily visit http://www.streetinsider.com/entities/Unusual+11+Mid-Day+Movers.
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