Rebecca Byrne
Updated from 10:17 a.m. EST Investors sent shares of AltriaMO sharply lower Monday amid news of more woes for the company. The first blow came when Standard & Poor's warned Friday that it could cut the firm's debt rating to junk status if the company has to shell out for a $12 billion bond to appeal the verdict in a recent trial in Illinois. Then, Moody's Investors Service on Monday cut its rating on Altria by two notches. Also, Monday marked the second day of New York's smoking ban in restaurants and bars, adding to investor nervousness. The company's shares ended down almost 7% at $29.96 amid the barrage of bad news. R.J. Reynolds, meanwhile, shed 5% to $32.26, and Loews' LTR Lorillard Tobacco, which trades as the tracking stock Carolina GroupCG, lost 3% to $18.50. Altria was ordered March 21 to pay more than $10 billion for deceiving smokers into thinking that low-tar cigarettes were less harmful than regular brands. In order to appeal the case, the firm must pay a bond of $12 billion -- the amount of the award plus interest. An appeals bond is designed to assure that the plaintiff who has won a verdict will get paid if the appeal fails. The Illinois Court has stayed the entry for its judgment until April 21, and Altria is trying to reduce the cost of the bond by negotiating with the defendants. Formal discussions between the two parties are scheduled to start Tuesday. In a note Friday, Standard & Poor's credit analyst Nicole Detz Lynch said she would cut the firm's debt rating to "speculative-grade" prior to April 21 "if there is not a viable and realistic plan to address the bonding issue." If the amount of the bond can't be reduced to a manageable amount, she said, Philip Morris USA "might have to consider bankruptcy as an option."
Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Ensco International and Echelon have the potential to move higher in coming days.
See who made what calls.
The addition of video is helping telecom companies compete against cable and satellite companies.
The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.
See who made what calls.
Keep on top of the market and the critical information you need to make more profitable investing decisions.
Sponsored by:

ACCESS REALMONEY


