Stocks to Watch: priceline Pops, Collins & Aikman Crashes
The Day's Winners
The Day's LosersAuto parts maker Collins & Aikman (CKC) was dropping 17% after the company restated its first-quarter results in response to a request from federal regulators to give investors more information before the company's planned 20 million share public offering. The company said its loss widened by $1.4 million, or 2 cents a share, as it wrote down part of its acquisition of Textron's (TXT) auto-trim unit. The public offering was delayed as a result of the restatement. NetScout Systems (NTCT) was down about 30% to $4.35 after the company slashed its outlook, saying IT spending continued to be tight. The company, which makes products that help businesses manage computer networks and software, expects first-quarter results ranging from a loss of 4 cents a share to a profit of 1 cent on revenue of $17 million to $20 million. Analysts had expected the company to earn 3 cents on revenue of $23.6 million. Shares of Pediatrix Medical (PDX) were losing 28% to $27.40 on news the Federal Trade Commission has requested information relating to the company's $190 million acquisition of Magella Healthcare. Pediatrix, which runs a network of physician group practices, said the inquiry shouldn't be viewed as an accusation of wrongdoing, but the company can't predict if the investigation will impact its business. PeoplePC (PEOP) plunged about 40% to 6 cents after Earthlink (ELNK) said it would acquire the cheap Internet service provider for 1.71 cents a share. Earthlink will pay about $10 million for the company and assume $35 million in liabilities. Earthlink said the purchase price could go up to 2.45 cents a share, or $14.3 million, depending on preclosing adjustments. Rainbow Technologies (RNBO) shed 11% to $4.75 after the company said it will take $29 million in second-quarter charges to lay off 8% of its workforce and fold its services segment. The company said its revenue would be 5% below last quarter due to lower IT spending in the services sector. In response Rainbow plans to shut down its Spectria segment, slash its workforce, and discontinue certain products. Rainbow said it sees no long-term visibility for a services sector rebound in IT spending.
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