Molex Cuts Outlook on Lower Demand
Molex (MOLX), manufacturer and seller of electronic components worldwide, cut its first-quarter outlook -- citing lower demand in its telecom, data infrastructure and automotive markets.
Management says the industrial and consumer electronic markets are below the company's original outlook -- as customers remain cautious in their procurement and forecasting -- given the significant uncertainty in the global economy.
For the first quarter, Molex sees earnings of 25 cents to 29 cents a share -- below Reuters consensus estimates of 38 cents a share.We have avoided the shares since our early June coverage began, when Molex shares were trading in the $27-$28 range. We recommend looking elsewhere for better investment opportunities. The company has a 2.75% dividend yield, based on last night's closing stock price of $22.19. Molex is not a recommended dividend stock at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
Eli Lilly Reportedly Offering $70 per Share for ImClone According to various news reports, Eli Lilly (LLY - Get Report) is in advanced talks to acquire ImClone Systems (IMCL) for $70 per share in cash in a $6.1 billion deal. Eli Lilly's offer significantly trumps the latest offer from Bristol Myers (BMY - Get Report) of $62 per share. Bristol Myers already owns a 17% stake in ImClone Systems. Eli Lilly is looking to add to its current slate of Oncology products -- which presently include Alimta and Gemzar. ImClone's cancer treatment Erbitux -- which is used to combat colorectal, head and neck, and lung cancers -- had sales of about $1.3 billion in 2007.