Unusual 11 Mid-Day Movers 9/26: IDEV, VSE, OSK, AEHR Higher; WM, NCC, SDA, WB Lower

September 26, 2008 12:35 PM EDT

Washington Mutual (NYSE: WM) 90.3% LOWER; The Office of Thrift Supervision announced that $307 billion thrift Washington Mutual (NYSE: WM) was placed into receivership with the FDIC and certain assets, including deposits and branches, were subsequently acquired by JP Morgan (NYSE: JPM). The regulators said insufficient liquidity put WaMu in an unsafe operating condition. WaMu is now the largest bank failure in U.S. history.

Indevus Pharmaceuticals (Nasdaq: IDEV) 87.7% HIGHER; announced that it has signed a development, license and commercialization agreement with Teva Pharmaceuticals (Nasdaq: TEVA) for the exclusive, worldwide rights to pagoclone. Under the terms of the Agreement, which is subject to applicable regulatory clearances and customary conditions, Indevus will conduct and Teva will reimburse Indevus for its expenses for a Phase IIb study. Under the 50/50 participation, Indevus could receive up to $92.5 million (including the Phase IIb study expenses) in U.S. and European development milestones and R&D reimbursement. In the event of a conversion to the royalty structure, in addition to the $92.5 million of milestones and reimbursements, Indevus could receive up to $50.0 million in U.S. based sales threshold milestones.

National City (NYSE: NCC) 43.7% LOWER; following WaMu's implosion last night, it seems traders are betting that National City could be the next bank to be the target of a take-under or help from the FDIC.

Sadia S.A. (NYSE: SDA) 33.6% LOWER; in a Form 6-K filed after the close yesterday, the company announced that it will record $406 million in losses due to volatility in the exchange market. The firm also the release of its CFO as a result of the loss.

Wachovia (NYSE: WB) 27% LOWER; traders are selling financials today amid WaMu's failure. Put simply, it is astonishing to see these banks down so substantially even though they cannot be shorted.

VeraSun Energy (NYSE: VSE) 26.4% HIGHER; has traded relatively flat since dropping from over $5 to under $1.50 on September 17. As no news is out from the company today, the rally may be the result of shorts covering their downside bets on the stock, creating upside as they buy. At the beginning of September, VeraSun had 16% of its float shorted.

Research In Motion Limited (Nasdaq: RIMM) 20.6% LOWER; reports Q2 EPS of $0.86, 1 cent lower than the analyst estimate of $0.87. Revenues for the quarter were $2.58 billion, versus the consensus of $2.6 billion. Sees Q3 EPS of $0.89-$0.97, versus the consensus of $0.98 and sales of $2.95-$3.1 billion, versus the consensus of $2.94 billion. Numerous Wall Street firms are out with negative notes on RIMM today. Amid the pessimism, Credit Suisse upgraded shares to Neutral this morning.

Oshkosh Corporation (NYSE: OSK) 14.9% HIGHER; sees Q4 EPS at or above the higher end of its previously issued estimate of $0.50-$0.65, which compares to the consensus of $0.59. Oshkosh also expects to lower its debt from its previous estimate of $2.85-$2.9 billion to $2.80-$2.85 billion due to cash flow from earnings and work capital initiatives.

Aehr Test Systems (Nasdaq: AEHR) 12.1% HIGHER; reports Q1 EPS of $0.10, versus the analyst estimate of $0.20. Revenues for the quarter were $9.7 million, versus the consensus of $9.70 million. (only 1 analyst covers the stock)

Legg Mason (NYSE: LM) 6.6% HIGHER; no specific news is out but recent data showed that outflows to Legg Mason's funds were less than expected. Investors could be buying the stock today as a negative sentiment has been surrounding Bill Miller's abilities recently, and this could be considered a slight vote of confidence.

PharmAthene, Inc. (Amex: PIP) 5.1% HIGHER; announced today that the National Institute of Allergy and Infectious Diseases has awarded the Company a multi-year contract for up to $83.9 million for advanced development of a third generation recombinant protective antigen anthrax vaccine.

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• Credit Suisse
• JPMorgan
• Wachovia
• Bill Miller

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