Stocks in Motion: Linn Energy
Shares of Tyco (TYC) were among the NYSE's losers Friday, falling 9% after the conglomerate cut its first-quarter earnings guidance and laid out plans for a breakup into three separately traded companies.
Tyco now sees first-quarter earnings from continuing operations of about 38 cents a share, down from an earlier view of 40 cents to 42 cents a share. Analysts polled by Thomson First Call had been projecting earnings of 42 cents a share. For all of 2006, the company now sees earnings of $1.85 to $1.92 a share, below Wall Street's projection of $2.01 a share.
As for the company's business reorganization, Tyco plans to separate its health care and electronics businesses from the rest of the company. "After a thorough review of strategic options with our board of directors, we have determined that separating into three independent companies is the best approach to enable these businesses to achieve their full potential," the company said. The breakup plan is expected to cost about $1 billion. Shares recently were trading down $2.71 to $27.60.
Insteel Industries (IIIN) rose 7% after the maker of steel wire reinforcing products announced a $15 million share repurchase plan. Based on Jan. 12 closing prices, the buyback program represents about 9% of the company's outstanding stock. "Our strategy for the use of operating cash flow includes paying dividends, making capital investments and strategic acquisitions, and opportunistic repurchases of the company's stock, all with the intent of enhancing shareholder value," the company said. Insteel also increased its existing revolving credit facility to $100 million from $75 million and extended the maturity date by two years to June 2010. Shares were trading up $1.22 to $19.35.Shares of Linn Energy (LINE) rose 9% in their first day of trading. The independent natural gas company, in the first initial public offering of 2006, priced 11.75 million units at $21 apiece, resulting in net proceeds of about $223 million. The pricing came in at the high end of the proposed range of $19 to $21 a unit. About $122 million of the proceeds will be used to pay debt. Shares were trading up $1.27 to $22.97.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV