Featuring: EXC raising its bid for NRG Energy; XLNX’s lowered Q1 outlook; SEPR’s disappointing depression drug trial results; BLDP’s step into the Indian market; and BA’s Q2 delivery results.
Today’s Stock Alerts include: Exelon Corp. (NYSE: EXC), Xilinx Inc. (Nasdaq: XLNX), Sepracor Inc. (Nasdaq: SEPR), Ballard Power Systems Inc. (Nasdaq: BLDP) and Boeing Co. (NYSE: BA).
Exelon Corp. (NYSE: EXC) Stock Alert – EXC Revises Offer to Buy NRG Energy; Sweetens Bid by 12%
Determined to realize an Exelon-NRG combination, utility services company Exelon Corp. (NYSE: EXC) said it has increased its hostile bid to acquire rival NRG Energy by 12% to about $7.5 billion. Exelon is looking to a combined company that would be the No. 1 power producer in the U.S., providing electricity to about 45 million homes.
Following repeated rejections of its offer since October last year, Exelon decided to increase its offer after identifying another $1.5 billion in cost savings that would result from combining the businesses and adding in the benefits of NRG’s recent purchase of a retail business from Reliant Energy, the report said.
“We listened to NRG investors and balanced their views with the best interests of Exelon shareholders. An exhaustive analysis by our internal team, informed by the best third-party experts, resulted in additional synergies, allowing us to increase our offer to NRG shareholders,” said Exelon chairman and CEO John Rowe in a press release, stating that the company’s latest move is their “best and final offer.”
Exelon expressed confidence it could refinance NRG’s $4.7 billion of senior notes and other debt and still maintain investment grade credit ratings.
The Chicago-based company said it will communicate the value of its new offer to NRG shareholders, which will hold their annual shareholder meeting on July 21. Meanwhile, NRG urged shareholders to take no action while its board reviewed the revised offer.
Exelon, through its subsidiaries, engages in the generation, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers in northern Illinois.
The company also purchases and sells electricity and natural gas on retail basis to customers in southeastern Pennsylvania. It generates electricity through nuclear, fossil and hydroelectric generation facilities. As of December 31, 2008, Exelon owned generation assets with an aggregate net capacity of 24,809 megawatts. The company distributed electricity to approximately 3.8 million customers in northern Illinois and 1.6 million customers in southeastern Pennsylvania, as well as natural gas to 485,000 customers in Pennsylvania. Exelon was founded in 1887 and is based in Chicago, Illinois.
In its recent chart, EXC 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. 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.
Xilinx Inc. (Nasdaq: XLNX) Stock Alert – XLNX Lowers Q1 Revenue Outlook, Supply Constraints Cited
Deviating from optimism in the chip sector, Xilinx Inc. (Nasdaq: XLNX) recently offered a downbeat view on its fiscal first-quarter sales, seeing results below the low end of its prior projections. The company cited supply constraints on some devices for its lowered outlook
The San Jose, Calif.-based company now expects first-quarter revenue of approximately $375.3 million, compared with its previous revenue guidance of $379.2 million to $410.8 million. Current consensus estimate is revenue of $395.9 million for the quarter ended June 30, 2009. The company reported supply constraints on some Virtex-5 devices that are in high demand, but expects most of its delinquency issues to be resolved in the September quarter. It previously forecast its sales to be in a range of down 4% to up 4%, sequentially.
On the other hand, the company is sticking to its current gross margin and operating expense forecasts.
Xilinx designs, develops and markets complete programmable logic solutions. These solutions have components, such as integrated circuits (ICs) in the form of programmable logic devices (PLDs); software design tools to program the PLDs; predefined system functions delivered as intellectual property (IP) cores; design services; customer training, and field engineering and technical support. Xilinx’s PLDs include field programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions. Its solutions are designed to provide high integration and quick time-to-market for electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive and data processing.
In its recent chart, XLNX’s 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. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently above the stock’s 13-day moving average, a bullish signal is indicated, weakened by significant liquidating volume as reflected by downward sloping moving averages.
Sepracor Inc. (Nasdaq: SEPR) Stock Alert – SEPR announces Disappointing Mid-stage Study Results for Experimental Depression Drug
Sepracor Inc. (Nasdaq: SEPR) recently issued a report showing its experimental depression drug SEP-225289 failed a mid-stage study. The 514-person study was designed to evaluate the safety and efficacy of the said drug candidate. SEP-225289 is a member of a relatively new class of pharmacologic agents referred to as triple reuptake inhibitors based on their activities at the serotonin, norepinephrine and dopamine transporters.
According to the press release, the research-based pharmaceutical company determined the experimental drug did not meet the primary efficacy endpoint, which was a reduction in symptoms of depression following eight weeks of treatment, as assessed using the clinician-rated, 17-item HAM-D scale (Hamilton Depression Rating Scale, a standard scale used to assess depression in clinical trials and consisting of a list of symptoms commonly associated with depression).
Commenting on the report, Mark H.N. Corrigan, M.D. EVP of Research and Development at Sepracor, stated, “While we are clearly disappointed with the findings from the analysis of the preliminary study results, we are in the process of further analysis of the dose response and secondary endpoints to determine how or if we will take this novel mechanistic approach forward.”
Sepracor engages in the discovery, development and commercialization of differentiated products that are prescribed principally by primary care physicians and certain specialists. The company is concentrating its product development efforts in two therapeutic areas: respiratory diseases and central nervous system (CNS), disorders.
As of December 31, 2008, the company’s marketed products in the United States include, LUNESTA (eszopiclone), a non-benzodiazepine sedative hypnotic, for the treatment of insomnia in adults; XOPENEX (levalbuterol HCl) Inhalation Solution, a short-acting bronchodilator, for the treatment or prevention of bronchospasm in patients; XOPENEX HFA (levalbuterol tartrate) Inhalation Aerosol, a hydrofluoroalkane (HFA), metered-dose inhaler (MDI), for the treatment or prevention of bronchospasm in adults, adolescents and children, and BROVANA (arformoterol tartrate) Inhalation Solution.
In its recent chart, SEPR’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. 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 has begun to slow. Trading below its lower Bollinger Band, the stock reflects an overextended to the downside condition relative to its recent price action and is due for either a pause or retracement.
Ballard Power Systems Inc. (Nasdaq: BLDP) Stock Alert – BLDP announces Product Acceptance Milestone; Confirms Order Of 310 ElectraGen H2 Hydrogen-based Units
Ballard Power Systems Inc. (Nasdaq: BLDP) and partner IdaTech recently announced their 310 hydrogen fueled generators passed a product acceptance milestone, enabling them to penetrate the Indian market. Following the news, the companies confirmed the order of the units, which will be used to provide backup power for wireless telecommunications network equipment to ACME Tele Power Ltd customers in India.
“Having our FCgen(TM)-1020 ACS fuel cell product pass product acceptance as part of IdaTech’s ElectraGen(TM) H2 DC generator is a key proof point in our joint partnership with ACME. This formal acceptance triggers the order of 310 hydrogen units representing around 2MW of total power. Under the terms of the contract announced in October 2008, an order of natural gas units representing 10,000 units or over 70MW of total power is to follow later in 2009, subject to product acceptance tests on our new natural gas product,” Ballard president and CEO John Sheridan stated in the press release.
“The news that the ElectraGen(TM) H2 has been accepted by ACME and its customers is a very exciting development for IdaTech and, we believe for the industry as a whole. This order further validates the use of fuel cells as a viable and economic alternative to diesel generators,” said IdaTech CEO Hal Koyama.
According to the report, the units were designed and built around Ballard’s FCgen-1020 ACS fuel cell stack. The company plans to begin shipping its FCgen(TM)-1300 fuel cell product in the last quarter of 2009.
Ballard Power Systems is recognized as a world leader in the design, development, manufacture and sale of clean energy fuel cell products.deployment. Ballard is developing a new low-cost, reformate-capable FCgen(TM)-1300 fuel cell product. This technology overcomes distribution challenges presented with hydrogen, particularly in remote areas in India. In addition, the technology takes advantage of government subsidies for natural gas, accessing significant natural gas reserves and leveraging a growing natural gas distribution network throughout the country.
Ballard is engaged in proton exchange membrane (PEM) fuel cell development and commercialization. The company’s principal business is the design, development, manufacture, sale and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (back-up power and residential cogeneration).
The company operates in three segments: Power Generation, Automotive and Material Products.
In its recent chart, BLDP 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 weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages.
Boeing Co. (NYSE: BA) Stock Alert – BA announces Q2 Delivery Results; Analyst Cuts 787 Delivery Estimate
Boeing Co. (NYSE: BA) recently announced its deliveries across its commercial and defense operations for the second quarter of 2009. In the release, the company said it delivered 125 commercial airplanes, compared with 126 in the second quarter of 2008. The company has reportedly been ahead of delivery pace so far this year, with 246 commercial airplanes it delivered, versus last year’s 241 deliveries.
Separately, an analyst’s downbeat estimate on 787 jetliner deliveries drove shares of Boeing and several other aerospace companies down on Thursday. In a report, analyst Howard A. Rubel of Jefferies & Co. cut his estimated delivery of the 787 to 18 from 24 in 2010 and delaying his delivery forecast by three months.
Words of delay came out last month came out as Boeing announced it needs to reinforce small areas near the connection of the wings and fuselage before conducting the first test flight, which it had insisted would occur before July. Also, the company has not set a date for the first flight of the 787, and first deliveries to customers.
Maintaining a positive view, the analyst said the delay will allow Boeing to make improvements.
According to the analyst, it is unclear as to how long it will take the Boeing to fix the problem in the 787, but he believes it is an engineering problem rather than a “basic science problem or bad internal communication regarding risk.”
“From what we can determine, the systems elements of the program are performing well and that this current delay will enable the company to improve upon items that were in need of upgrading,” the analyst said in a note to investors.
Boeing is involved in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The company operates in five principal segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S) and Boeing Capital Corporation (BCC). BMA, N&SS and GS&S comprise the company’s Integrated Defense Systems (IDS) business. The Other segment classification principally includes the activities of Engineering, Operations and Technology (EO&T), an advanced research and development organization focused on technologies, processes and the creation of new products.
In December 2008, Boeing announced it has completed its acquisition of Federated Software Group, whose engineering services and software system help track and distribute equipment and personnel for the United States Department of Defense.
In its recent chart, BA’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.
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