Movers & Shakers: Tuesday’s biggest gaining and declining stocks

Abbott, Ambac, BlackRock, Exxon Mobil, Onyx, Wal-Mart

By MarketWatch

Last Update: 8:41 AM ET Feb 19, 2008

TEL AVIV (MarketWatch) — Companies whose shares are expected to trade actively
on Tuesday include Abbott Labs, Ambac, BlackRock, Credit Suisse, Exxon Mobil,
Marvel, Medco, Onyx, Sony, Toshiba, Yahoo and Wal-Mart.

U.S. markets were closed Monday for Presidents Day.

Abbott Laboratories (ABT) said late Friday the Food and Drug Administration
approved its cholesterol medication Simcor. The medication combines Niaspan,
Abbott’s extended-release niacin product that raises good cholesterol, and
simvastatin, which lowers bad cholesterol.

Ambac Financial, (ABK) the New York financial guarantor, is mulling a plan to
raise at least $2 billion of capital to help retain its AAA credit rating, people
familiar with the matter told The Wall Street Journal. The company would raise
the funds by selling shares to existing investors at a discount. It probably
would come before a larger move that the company’s chief executive has said is
under consideration: splitting the company in two, separating its businesses that
insure municipal bonds and guarantee structured finance products, the Journal
reported.

American Woodmark Corp. (AMWD) a manufacturer of kitchen cabinets and vanities,
swung to a third-quarter loss of $2 million, or 14 cents a share, from profit of
$3.8 million, or 24 cents a share, a year earlier. Sales fell 18% to $133
million. The average forecast of three analysts polled by Thomson Financial was
break-even on sales of $137 million.

Apple (AAPL) iPhones made in and exported from China are being smuggled back to
the country and sold to consumers well above U.S. retail prices, The New York
Times reported. The smuggling threatens Apple’s business model for the iPhone,
which centers on exclusive license agreements, the Times reported.

ArcelorMittal: (MT) Citigroup downgraded its rating of the world’s largest
steelmaker to hold from buy. “The stock has reached our (50-euro) price target
and the near-term outlook is uncertain. Raw material cost increases remain the
key risk to all steel producers,” the broker said. The broker also noted the
firm’s low export margins and high exposure to the U.S.

Bear Stearns Private Equity (BSC)(UK:BPLE) on Monday said it’s going to buy
Macquarie Private Capital Group (AU:MPG) for A$115.5 million ($104.9 million).
The portfolio Bear Stearns is buying consists of exposure to 44 private equity
fund managers and more than 300 underlying portfolio companies, with 62% of the
portfolio companies located in Asia.

BlackRock Inc. (BLK) raised the quarterly dividend to 78 cents a share, up 16%
from 67 cents in the previous quarter. The dividend is payable March 24 to
holders of record March 7.

ConAgra Foods Inc. (CAG)expects future annual earnings growth of 8% to 10% and
sales growth exceeding 4% in the near term and around 4% sales growth over the
long-term. The Omaha, Neb., packaged food company sees earnings from continuing
operations for the fiscal third quarter ending Feb. 24 to be “higher than
planned.” The company previously had seen fiscal 2008 second-half earnings of 70
cents a share, excluding items, with “slightly more” earnings in the fiscal third
quarter than the fiscal fourth quarter.

Credit Suisse (CS) on Tuesday said it cut its valuation of certain asset-backed
positions in its structured credit trading business by $2.85 billion following an
internal review. The group said the fair value reductions reflect significant
adverse market conditions in the first quarter of the year and will result in a
$1 billion charge to net income. The bank estimated it remains profitable in the
first quarter to date, but added it will also assess whether any part of the
reductions could affect 2007 results. Credit Suisse added its internal review,
which has identified mismarkings and pricing errors by “a small number” of
traders in certain positions in its structured credit trading business, is
continuing. In addition, on Monday Qatar’s prime minister, Sheikh Hamad bin Jasim
bin Jaber al-Thani, told Bloomberg News that it has accumulated stock in the
Swiss bank. He added the Qatar Investment Authority has as much as $15 billion to
spend on European and U.S. banking stocks.

Northwest (NWA)and Delta Air Lines (DAL)are expected to meet Tuesday to vote on a
potential merger that would create one of the world’s largest airlines, according
to a report in the Wall Street Journal. In separate reports, unions representing
Northwest and Delta pilots have reached an agreement on how to combine sonority
lists, which determines pilots’ routes and pay. Both Northwest and Delta are
committed to reaching an accord with pilots before a deal announcement to help
combine operations quickly and smoothly, the Journal said, citing people familiar
with the matter.

Exxon Mobil (XOM) is struggling to replace reserves and may have to boost capital
spending substantially, oil analyst Peter Hitchens at U.K. brokerage Seymour
Pierce said in a report.

General Mills Inc. (GIS)raised its expectations for fiscal 2008 earnings to $3.64
to $3.66 a share, including 19 cents of non-cash contributions from tax items and
market-to-market gains. The Minneapolis food company expects earnings, excluding
these items, of $3.45 to $3.47 a share. The company had previously estimated
earnings of $3.39 to $3.43 a share. General Mills increased it goals for fiscal
2010 net sales, per-share earnings and segment operating profit from previous
expectations of low-single digit compound growth in net sales, high single-digit
compound growth in per-share earnings and mid single-digit compound growth in
segment operating profits.

GTx Inc., (GTXI) the Memphis biopharmaceutical developer, reported a wider
fourth-quarter loss on 58% lower revenue. After the quarter ended, GTx received
$40 million as an up-front license fee from Merck & Co., (MRK) the Whitehouse
Station, N.J., drugmaker, tied to the companies’ collaboration on selective
androgen receptor modulators, GTx said. These are new drugs designed to treat a
number of musculoskeletal disorders. GTx is now focused on clinical trials for
Acapodene, Chief Executive Officer Mitchell Steiner said in a statement.

Marvel Entertainment Inc. (MVL) earned $27.6 million, or 35 cents a share, in the
fourth quarter, compared with $11.7 million, or 14 cents, a year earlier.
Marvel’s toy-segment net sales decreased to $20.5 million from $31.1 million as
the company made the transition from toys it produced and sold to toys licensed
to and produced and sold by Hasbro, (HAS)Marvel’s master toy licensee.

Medco Health Solutions Inc. (MHS) fourth-quarter profit fell 9.3% to $207.6
million, or 38 cents, from $228.8 million, or 39 cents a share, a year ago.
Revenue rose 4.1% to $11.38 billion. Excluding charges, the latest earnings were
43 cents a share. Analysts polled by Thomson Financial had been expecting
earnings of 41 cents a share on revenue of $11.47 billion. The company said
revenue growth was driven by higher mail-order volume associated with new
clients, partially offset by greater use of generic drugs. The group also raised
its 2008 earnings guidance to a range of $2.27 to $2.31 a share from a range of
$2.15 to $2.21 a share.

Natco Group Inc., (NTG) the Houston provider of process equipment, systems and
services for producing oil and gas, reported fourth-quarter net income of $13.1
million, or 66 cents a share, up from $10.8 million, or 55 cents, in the
year-earlier period. Revenue reached $156.8 million from $140.4 million.
Analysts’ mean profit estimate stood at 69 cents a share, according to FactSet
Research. The company also affirmed 2008 targets of $2.75 to $3 a share for
earnings and $620 million to $650 million for revenue.

Onyx Pharmaceuticals (ONXX)dropped in pre-open trade after partner Bayer
(BAYRY)said on Monday that they stopped a Phase III trial of Nexavar in patients
with non-small cell lung cancer, because interim results showed the study would
not meet its primary endpoint of improved overall survival. The companies said
they will still examine the drug in use across a wide variety of tumors.

Research in Motion Ltd. (RIMM) is suing rival Motorola Inc. (MOT), claiming
Motorola infringed on wireless technology-related patents and of anticompetitive
action related to royalties.

Sanmina-SCI Corp., (SANM) the San Jose, Calif., provider of
electronics-manufacturing services, said on Tuesday that it would quit the
personal-computing business via two deals. The company, which had said it would
shed the business, definitively agreed to sell certain assets of its PC business
and related logistics services in Hungary, Mexico and the U.S. to a unit of
Foxconn Technology Group for $80 million to $90 million. Foxconn is a Taiwan
provider of technology-design and -production services. Separately, the company
agreed to sell its Monterrey, Mexico, PC operation and related assets to Lenovo
Group. (LNVGY) Terms weren’t disclosed.

Sony (SNE) won the DVD-format war with Blu-ray technology. Toshiba (TOSBF) ended
its HD-DVD format, ceding the standard to Sony. Separately, a fund affiliated
with the United Arab Emirates may increase its stake in Sony and add other
Japanese electronics and automotive companies to its portfolio, according to
reports Tuesday. Dubai International Capital LLC plans to increase its holdings
in China, India and Japan to more than $5 billion during the next three to five
years while expanding funds under management to between $25 billion and $30
billion from $13 billion currently, Kyodo reported Tuesday, citing comments by
Anand Krishnan, chief operating officer of the fund.

Martha Stewart Living Omnimedia Inc., (MSO) net income rose to $33.3 million, or
63 cents a share, from $16.2 million, or 31 cents, a year earlier. Revenue rose
22% to $118.5 million from $97 million. Analysts polled by Thomson Financial
expected earnings of 65 cents a share on revenue of $122 million. For the first
quarter 2008, the company expects an operating loss of $4 million to $5 million
on revenue in the range of $66 million to $67 million. Separately, the New York
media and merchandising company, agreed to acquire certain assets of the chef
Emeril Lagasse, other than the restaurant and foundation-related assets, for $45
million of cash and $5 million of stock. The deal price could reach $70 million
if the businesses reach certain targets in 2011 and 2012. And MSO said it agreed
to acquire 40% of WeddingWire.com and the companies entered a license agreement.
WeddingWire combines an online marketplace with planning tools and a social
community. Terms weren’t disclosed.

Trico Marine Services Inc., (TRMA) the Houston provider of offshore support
services to the oil and gas industry, reported fourth-quarter earnings of $30.7
million, or $2.08 a share, on revenue of $65 million. A statement from the
company on Tuesday did not specify the year-earlier figures; compared with the
third quarter of 2007, the latest earnings more than doubled as revenue fell
7.8%. Reflected in the fourth-quarter numbers, Trico Marine said, were strong
international operations. Pricing per day rose in the North Sea, Trico Marine
said. In addition, Norwegian tax changes added 89 cents a share to net income in
the quarter. A survey of three analysts by Thomson Financial produced a consensus
estimate of 77 cents of earnings.

UBS: (UBS) Bear Stearns downgraded Switzerland’s UBS to peer perform from
outperform Monday, calling the bank’s remaining exposure to risky mortgage debt
“shocking” and saying further write-downs are on the way. The broker estimates
UBS will take a 9-billion-Swiss-franc ($8.2 billion) hit in 2008 and cut its 2008
earnings estimate by 58%. “One could argue that a neutral rating is generous, but
it reflects how far the shares have fallen,” Bear Stearns said. “We felt the bank
could put the subprime issue behind it once the recapitalization was complete. We
were wrong,” it added.

U.S. Steel Corp. (X) was upgraded to buy from neutral at UBS to take into account
a 65% hike in recent annual iron ore price settlements. “Because U.S. Steel is
self-sufficient in North America and prices are up to date over $200 a metric ton
for spot sheet, we see U.S. Steel margins benefiting as higher costs drive global
prices higher,” the broker said.

Wal-Mart: (WMT) The world’s No. 1 retailer reported fourth-quarter earnings rose
4%, meeting analysts’ estimates. The company’s first-quarter outlook is a bit shy
of expectations.

Westlake Chemical Corp. (WLK) fourth-quarter profit rose 31% to $18.8 million, or
29 cents a share, from $14.4 million, or 22 cents a share, a year earlier.
Adjusted earnings came in at 17 cents a share compared with 12 cents. Revenue
climbed 62% to $851 million. The average forecast of five analysts polled by
Thomson Financial was earnings of 33 cents a share on sales of $830 million.

Yahoo Inc.(YHOO) expects to incur pretax charges of $20 million to $25 million
for severance-pay expenses and related cash expenditures stemming from
restructuring its workforce, the Internet company said in a regulatory filing
Friday. The majority of the charges will be recognized in the first quarter, with
the remaining costs being recognized over the remainder of 2008, it said.

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