Lehman Brothers (LEH) said it expects a big second-quarter loss and announced plans to raise $6 billion through common and preferred stocks offerings.
Lehman shares plummeted 8.7% to $29.48 after announcing the news, which further dilutes the value of the stock to existing shareholders. All last week the investment bank fought off rumors that it would suffer higher losses.
Taser (TASR - Get Report), which makes electronic control devices designed to zap criminals and others, also plunged to a new 52-week low, losing 11.3% to $6.12. The Scottsdale, Ariz.-based company saw rival Stinger Systems move for dismissal of a patent infringement case Taser had filed. In a separate case, a jury found extended application of a Taser device responsible for 15% of an arrest-related death. The jury awarded about $1 million in compensatory damages and $5.2 million in punitive damages against Taser.
Shares of Rimage (RIMG), a Minneapolis maker of duplication systems for CDs, DVDs and laser discs, tumbled to new lows, falling 22.1% to $13.50. The company lowered is second-quarter earnings guidance to between 9 cents and 12 cents a share on revenue of $20 million to $22 million. Rimage had previously forecast EPS of 22 cents to 27 cents and revenue of $24 million to $26 million. Two analysts surveyed by Thomson Reuters are looking for 23 cents a share, and one analyst expects revenue of $24.9 million.Among the day's winners was Hilb Rogal and Hobbs (HRH). The insurance and risk management company's stock skyrocketed $12.93, or 41.9%, to $43.82 after it was acquired by insurance broker Willis Group Holdings (WSH) for $2.1 billion in cash and stock. Cost Plus (CPWM) shares climbed 9.2% to $3.33. The Oakland, Calif.-based furniture retailer announced Pier 1 Imports (PIR) had proposed to buy Cost Plus for $4 a share in stock. Cost Plus is reviewing the unsolicited offer.