This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Globe Specialty Metals Shares Drop After Downgrade

NEW YORK (AP) â¿¿ Shares of silicon alloy maker Globe Specialty Metals Inc. dropped more than 10 percent Thursday with a downgrade from Jefferies & Co., which said it expects continued declines in silicon prices to push the company's earnings below expectations this year.

THE SPARK: Jefferies analysts downgraded Globe's stock to "Hold" from "Buy."

THE BIG PICTURE: Recovery of prices for silicon metals and alloys depends mainly on economic conditions in Europe and the condition of the solar market, according to Jefferies analysts Luke Folta and Martin Englert. They expect silicon prices to keep falling until the second half of the year.

New York-based Globe is one of the world's biggest producers of silicon metal and silicon-based specialty alloys. They are used in a range of industrial and consumer products, including chemicals, aluminum, steel, iron, autos, solar cells and concrete.

THE ANALYSIS: Jefferies also lowered its 12-month target price for Globe from $22.50 to $16, still about 33 percent above its current price of around $12. In a note, the analysts reduced their estimate for 2012 earnings to 95 cents per share from $1.31 per share. They cut their estimate for the fourth quarter by 2 cents, to 26 cents a share, citing a fire at Globe's plant in Bridgeport, Ala., which is expected to reduce shipments and raise costs for the company.

SHARE ACTION: Globe shares plummeted $1.35, or 9.8 percent, on Thursday to $12.50 by midday, having dipped as low as $12.25. The shares have traded between $12.25 and $25.67 over the past 52 weeks.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,912.29 +122.10 0.73%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,791.1520 +42.7910 0.90%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs