Stocks in Motion: Star Gas
Updated from 11:28 a.m. EDT
Shares of Star Gas Partners (SGU) were among the NYSE's losers Monday, falling 80% after the company suspended its dividend and warned that it could file for bankruptcy.
Earnings at Star Gas' heating oil unit are expected to decline substantially, the company said, which will not permit it to meet the borrowing conditions under its working capital line. Star is currently in talks with lenders to modify conditions and other terms that would allow its business unit to operate through the winter. If lenders do not agree, however, to offer modified terms, Star said it could be forced to seek alternative financing on "extremely disadvantageous" terms or even be forced to seek bankruptcy protection. Shares of Star Gas traded down $17.28 to $4.32.
Monaco Coach (MNC) fell 11.4% after the company warned that third-quarter earnings would fall short of expectations. The maker of motor homes expects earnings of 24 cents to 27 cents a share. Sales, meanwhile, are now expected to be $355 million to $360 million, down from previous guidance of $360 million to $370 million. Analysts polled by Thomson First Call had been expecting earnings of 40 cents a share on sales of $354.5 million. The company was hurt by a soft retail market, hurricanes in the Southeast, and higher-than-expected promotional costs. Shares traded down $2.30 to $17.81.Shares of Progressive (PGR) rose 2.8% after the auto insurer said that it plans to buy 16.9 million shares of its own stock at $88 apiece as part of a modified Dutch Auction tender offer. The final number of shares accepted for purchase will be tallied and announced after the final results of the tender offer are made available. The company expects to complete the process within five business days. Shares of Progressive traded up $2.41 to $88.85.
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