Stocks to Watch: Boron LePore Leaps, Gerber Childrenswear Drops
Updated from 2:16 p.m. EDT
WinnersBoron LePore (BLPG) was climbing 19% to $15.90 on word Cardinal Health (CAH) agreed to acquire the company. According to the terms of the deal, Cardinal will acquire Boron, a medical education provider, for $16 a share, giving the transaction a value of around $190 million. Cardinal Health offers various services to the health care industry, including consulting, product packaging and marketing and pharmaceuticals distribution. Computer Sciences (CSC - Get Report) was rising 11% to $46.22 a day after the company said fourth-quarter earnings rose to 82 cents a share from 22 cents a share, including a restructuring charge. Analysts polled by Thomson Financial/First Call had been expecting 77 cents. Computer Sciences also said it expects earnings of $2.73 to $2.88 a share for the year with revenue growth of 6% to 8%. Analysts were expecting a profit of $2.51.
CTI Industries (CTIB - Get Report), a maker of balloons and films, said first-quarter sales rose to $9.7 million from $6.1 million in the year-ago quarter. The company earned 31 cents a share, reversing a loss of 11 cents in the same period last year. The stock was one of the big winners of the day, rising 45% to $6.60. Earlier in the session, the shares were as high as $8. MasTec (MTZ) was gaining 10% to $8 the day after the company reported first-quarter earnings before items of 3 cents a share, matching estimates. Including items, MasTec, a designer of networks for telecommunications, broadband and energy companies, lost 51 cents. The company also raised its guidance for the full year. Mattson Technology (MTSN) was gaining 7% to $8.94 after Bear Stearns upgraded the company's shares to buy from attractive. The firm has a price target of $15 on Mattson.
LosersAbbott Laboratories (ABT - Get Report) was dropping 9% to $47.06 after the company said the Food and Drug Administration determined that its Lake County, Ill., diagnostic manufacturing operations failed to meet the agency's quality standards. Beverly Enterprises (BEV) was falling 10% to $7.52 after the operator of nursing homes and assisted living centers said California regulators are investigating possible criminal charges against the company. In a filing with the Securities and Exchange Commission, Beverly said the probe is based in part on civil citations related to patient care issued by the California Department of Health Services involving incidents from 1998 to 2001. Most of the citations were resolved by paying civil penalties, and some are still being contested. Gerber Childrenswear (GCW) agreed to be acquired by Kellwood (KWD), and the target company was actually falling sharply. Gerber, which markets infant and toddler apparel and related products, was down 18% to $6.80 after selling out to Kellwood for $6.85 a share in cash and stock. Gerber closed Tuesday at $8.25, but according to the company's press release, this was probably the best option the company had. Kellwood, a marketer of apparel and recreational and camping products, was off 0.6% to $27.18. Drug manufacturer Schering-Plough (SGP) said in its quarterly filing with regulators that it has been informed that the Food and Drug Administration's office of criminal investigation in Puerto Rico has launched an inquiry into one or more of the company products. The company's shares were losing 9% to $25.80.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.