Today’s Stock Alerts include: MDRNA Inc. (Nasdaq: MRNA), Navistar International Corp. (NYSE: NAV), Ceradyne Inc. (Nasdaq: CRDN), Cooper Industries Ltd. (NYSE: CBE), Royal Caribbean Cruises Ltd. (NYSE: RCL) and Daimler AG (NYSE: DAI).
MDRNA Inc. (Nasdaq: MRNA) Stock Alert – MRNA Shares Jump on FDA’s Approval for Generic Osteoporosis Nasal Spray; Partner Par Pharma Launches Product
MDRNA Inc. (MRNA) shares skyrocketed 77.27% in today’s afternoon trading, moving to $2.73. Shares of the Washington-headquartered biotechnology more than doubled on word that U.S. health regulators approved its generic calcitonin-salmon nasal spray to treat osteoporosis. In addition, partner Par Pharma has launched the product.
Par Pharma said in a statement the nasal spray is indicated for the treatment of osteoporosis in females who have low bone mass, after five years or more of menopause, relative to healthy premenopausal females.
In a press release, president and CEO J. Michael French made the following statement, “We are pleased that generic calcitonin-salmon nasal spray has received full FDA approval and has been launched by Par. Revenue generated from the sale of calcitonin-salmon by Par will provide us with working capital to help advance our RNAi programs. I thank the team at MDRNA and Par for their superb efforts to bring this product to market.”
The company reportedly developed the legacy product in the early 2000s, a copycat version of Miacalcin nasal spray that is marketed by Novartis in the United States.
MDRNA is a company focused on the discovery, development and commercialization of pharmaceuticals based on RNA interference (RNAi). Its infrastructure provides for pre-clinical scale manufacturing of both siRNAs and delivery materials, the comprehensive analysis and optimization of these compounds both individually and as drug candidates, and the filing of Investigational New Drug Applications.
In today’s daily chart, MRNA’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading above its upper Bollinger Band, the stock reflects an overextended condition relative to its recent price action and is due for either a pause or retracement. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher.
Navistar International Corp. (NYSE: NAV) Stock Alert – NAV Misses Analyst Estimate; Lowers Outlook
Navistar International Corp. (NYSE: NAV) shares gained 4.67% in today’s late trading, moving to $45.05. Navistar is a holding company that operates through its principal operating subsidiaries, Navistar Inc. and Navistar Financial Corp. (NFC).
Hurt by weak industry sales in every part of the company’s commercial business, NIC reported fiscal second-quarter earnings of 60 cents per shares, ex-items, missing consensus estimates of 94 cents. Revenues in the quarter fell 29% to $2.81 billion, and came in short of consensus estimates of $3.03 billion.
In its release, the company stated that second-quarter earnings were reduced by $31 million, equal to 44 cents per diluted share, from other costs related to the Ford settlement. In addition in the latest period, the company incurred research and development costs, and unanticipated costs related to warranty on products sold in prior periods, partially offset by the benefits from certain out-of-period accounting adjustments.
Looking ahead, Navistar slashed its fiscal-year 2009 EPS target to $2.80 to $3.10, excluding Ford settlement effects, from $5.10 to $5.60, vs. consensus estimates of $4.09. Including Ford settlement effects, the company sees EPS range of $5.20 to $5.50.
In a press release, chairman and CEO Daniel C. Ustian offered the following statement, “It is now clear that the economic recovery will take longer than had been originally expected. We are addressing this likelihood straight on by maintaining focus on our core product and market initiatives while taking the necessary steps that will allow us to adapt to the rapidly changing marketplace.”
The company is a manufacturer of commercial trucks, IC Bus, LLC (IC) brand buses, MaxxForce brand diesel engines, Workhorse Custom Chassis LLC (WCC) brand chassis for motor homes and step vans, Navistar Defense LLC military vehicles, and a provider of service parts for all makes of trucks and trailers.
Additionally, NIC is a designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicles (SUV) markets. The company also provides retail, wholesale and lease financing of its trucks.
The company operates in four segments: Truck, Engine, Parts (collectively called manufacturing operations), and Financial Services, which consists of NFC and its foreign finance operations (collectively called financial services operations).
In today’s daily chart, NAV’s MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock. NAV is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action.
Ceradyne Inc. (Nasdaq: CRDN) Stock Alert – CRDN Shares Down on Revised Fiscal 2009 Revenue and Earnings Guidance
Ceradyne Inc. (Nasdaq: CRDN) shares tanked 12.92% to $20.35 in today’s late trading. Ceradyne develops, manufactures and markets advanced technical ceramic products, ceramic powders and components for defense, industrial, automotive/diesel and commercial applications.
Surprising analysts who believed the company could meet its prior estimates, Ceradyne revised it fiscal year revenue and earnings guidance to approximately 70 cents per fully diluted share compared to the guidance range at the lower end of $1.60 it provided on April 28, 2009.
According to the report, the company blamed economic weakness and fewer-than-expected shipments of armor for use in body and vehicle.
It estimates that its 2009 sales will be in the range of $420 million to $440 million compared to the prior guidance range of $465 million to $500 million, versus consensus of $462 million.
“Global economic conditions have continued to deteriorate, impacting many of our customers as well as a number of our businesses. In addition, body armor orders are below our previous estimates,” state chairman, CEO and President Joel P. Moskowitz in a press release. “However, we still expect good free cash flow performance for 2009. In order to better position the company in light of the current economic backdrop, we are continuing to ‘right size’ Ceradyne throughout our global operations.”
The company is scheduled to conduct a conference call to discuss the revised guidance at 8 a.m. PDT on Thursday, June 11, 2009. Interested parties may call toll-free 877-717-3046 (or 706-634-6364 for international callers) to participate in the teleconference.
The company urges callers to dial in approximately 10 minutes prior to the start of the call. One may also listen to the teleconference live via the Internet at www.ceradyne.com or www.earnings.com. An archive of the call will be available at these Web sites.
Ceradyne’s products include lightweight ceramic armor for soldiers and other military applications; ceramic industrial components for erosion and corrosion resistant applications; ceramic powders, including boron carbide, boron nitride, titanium diboride, calcium hexaboride, zirconium diboride, and fused silica, which are used in manufacture of armor and a range of industrial products and consumer products; evaporation boats for metallization of materials for food packaging and other products; reduced friction, ceramic diesel engine components; functional and frictional coatings primarily for automotive applications; translucent ceramic orthodontic brackets, and ceramic-impregnated dispenser cathodes for microwave tubes, lasers and cathode ray tubes.
In today’s daily chart, CRDN’s MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. Trading near its lower Bollinger Band, the stock reflects low price relative to its recent price action.
Cooper Industries Ltd. (NYSE: CBE) Stock Alert – CBE Board Approves Moving of Company’s Place of Incorporation from Bermuda to Ireland
Cooper Industries Ltd. (NYSE: CBE) shares fell 3.63% midday today, trading at $34.23. Cooper manufactures, markets and sells its products and provides services throughout the world.
The company, citing the need to better manage its cost structure, including taxes and regulatory costs, recently announced its board has unanimously approved a plan to reincorporate from Bermuda to Ireland.
Cooper said in a report that Ireland has a stable legal and regulatory environment and a solid network of tax treaties with trading partners.
“The decision to change Cooper’s place of incorporation was impacted by the unprecedented global economic conditions that have led to a dramatic reduction in global demand in virtually all markets that we serve and was made to maintain Cooper’s global competitive position,” said chairman and CEO Kirk S. Hachigian.
Hachigian said this reorganization is one of the key proactive measures they must take to manage their cost structure and remain competitive in global markets so Cooper can continue to reinvest in its business, expand its workforce and develop innovative new products.
The company said it will ask its shareholders to approve the reincorporation.
It has manufacturing facilities in 23 countries. Operations in the United States are conducted by wholly owned subsidiaries of Cooper, organized by the two business segments. Cooper serves four major markets: the industrial, commercial, utility and residential markets. Cooper also serves the electronics and telecommunications markets.
Markets for Cooper’s products and services are worldwide, with United States being the key market. The Electrical Products segment manufactures, markets and sells electrical and circuit protection products. The Tools segment manufactures, markets and sells hand tools for industrial, construction, electronics and consumer markets.
In today’s daily chart, CBE is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Stock Alert – RCL Sees Lowered Earnings, Company Says Swine Flu Hurt Operations
Royal Caribbean Cruises Ltd. (NYSE: RCL) shares dropped 4.70% this afternoon, trading at $14.18. Royal Caribbean is a cruise company operating 38 ships in the cruise vacation industry with approximately 78,650 berths as of December 31, 2008.
The Miami-based company recently said the swine flu outbreak will negatively impact its earnings by 22 cents per share. In a release, the company said the virus led Royal Caribbean International’s ships to steer clear of Mexican ports. It also canceled the launch of Pullmantur’s Pacific Dream, which targets Mexican nationals, and significantly lowered Pullmantur’s Mexican tour capacity.
“Fortunately, our vessels are quickly returning to their original itineraries, but the impact from the publicity surrounding the H1N1 virus on our Mexican business is frustrating,” Fain said in a statement today.
Analysts expect the cruise operator to lose 3 cents a share in its current quarter, according to data provided by FactSet Research.
Royal Caribbean owns five cruise brands, Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France. In addition, it has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Its cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
The ships operate on a selection of worldwide itineraries that call on approximately 425 destinations. Royal Caribbean’s ships operate worldwide and have itineraries that call on destinations in Alaska, Asia, Australia, the Bahamas, Bermuda, California, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, Mexico, New England, New Zealand, the Panama Canal and South America.
In today’s daily chart, RCL’s MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.
Daimler AG (NYSE: DAI) Stock Alert – Supreme Court Delays Chrysler/Fiat Merger
Daimler AG (NYSE: DAI) shares slipped .77% to $37.40 in today’s late trading. Daimler AG is engaged in developing, manufacturing, distributing and selling a range of automotive products, mainly passenger cars, trucks, vans and buses.
The U.S. Supreme Court recently delayed Chrysler’s sale of most of its assets to a group led by Italy’s Fiat. Several published reports have it that Supreme Court Justice Ruth Bader Ginsberg granted a motion filed by Indiana state pension funds to delay the merger between the American and Italian automakers in what the U.S. Treasury Department said was an administrative extension designed to allow sufficient time for the Supreme Court to explore whether or not a stay is needed.
On April 30, 2009, Chrysler filed for Chapter 11 bankruptcy protection and announced a partnership with Fiat. On June 1, Chrysler stated they were selling some assets and operations to the newly formed company Chrysler Group LLC. Fiat will hold a 20% stake in the new company, with an option to increase this to 35%, and eventually to 51%.
Chrysler claims the agreement with Fiat is the best deal it can get for its assets and is critical to the company’s plan to emerge from Chapter 11 bankruptcy protection.
German car DaimlerAG is formerly DaimlerChrysler, founded in 1998 when Mercedes-Benz manufacturer Daimler-Benz merged with the US-based Chrysler Corp. The deal created a new entity, DaimlerChrysler. However, the buyout failed to produce the trans-Atlantic automotive powerhouse dealmakers had hoped for.
On May 14 2007, DaimlerChrysler announced it would sell Chrysler to Cerberus Capital Management of New York, a private equity firm that specializes in restructuring troubled companies, although Daimler continued to hold a 19.9% stake. On April 27, 2009, Daimler AG signed a binding agreement to give up its 19.9% remaining stake in Chrysler LLC to Cerberus Capital Management and pay as much as $600 million into the automaker’s pension fund.
Daimler AG also provides financial and other services relating to its automotive businesses.
Daimler AG operates in four business segments: Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, and Vans, Buses, Other. In Vans, Buses, Other segment, the company reports the Mercedes-Benz Vans segment, the Daimler Buses business unit, and all other businesses and investments in businesses not allocated to one of the reportable business segments.
In today’s daily chart, DAI is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum.
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