Friday's Winners & Losers

Research In Motion and NetSuite pave the way for tech.
Author:
Publish date:

A strong earnings report from BlackBerry maker

Research In Motion

(RIMM)

and the impressive public market debut of business software maker

NetSuite

(N)

lifted tech stocks Friday.

Research In Motion soared 11% after the company doubled its earnings in the third quarter and topped Wall Street expectations for the current quarter despite concerns that a slowdown in consumer spending and financial sector woes could affect BlackBerry sales. Net income for the third quarter rose to $370.5 million, or 65 cents a share, compared with $175.2 million, or 31 cents a share, a year ago.

Revenue increased 22% to $1.67 billion from $835.05 million the year-before. Analysts were expecting revenue of $1.65 billion and earnings of 62 cents a share. RIM guided revenue in the range of $1.8 billion to $1.87 billion, with earnings in the range of 66 cents a share to 70 cents a share. Analysts were expecting revenue of $1.74 billion and EPS of 65 cents. Shares of RIM closed up $11.64, or 11%, to $118.63 in recent trading.

NetSuite gained 10% following the company's

debut on the stock market Thursday. The stock had been priced at $26 and the Dutch auction IPO helped raise $161.2 million for the company, approximately double its filed base price. The successful debut has also given NetSuite a market cap above $1.5 billion. Shares of Netsuite were up $3.64 to $39.14.

Oracle

(ORCL) - Get Report

CEO Larry Ellison holds a 54.5% stake in the company. Shares of Oracle closed up 61 cents, or 2.8%, to $22.71.

Leading the skyward surge in financial stocks was

First Marblehead

, which was up some 66% after

Goldman Sachs

(GS) - Get Report

agreed to

inject the student lender with up to $260.5 million by buying up to 19.99% of the firm's shares outstanding as of the time the deal closes. That kicks off today with a purchase of $59.8 million in securities convertible to shares at $11.24 apiece. Then, upon regulatory clearance, Goldman will buy up to another $200.7 million worth for a $15 per-share conversion price.

Goldman additionally agreed to establish a $1 billion warehouse lending facility for the company. Further, First Marblehead will suspend its dividend "for the foreseeable future" in an effort to preserve its cash levels. First Marblehead shares jumped $7.46 to $18.70. Goldman added 3% at $209.60.

Merrill Lynch

(MER)

may also hop on the capital-infusion bandwagon: the troubled New York broker is currently in late-stage negotiations to

get as much as $5 billion from Singapore-based Temasek Holdings, according to

The Wall Street Journal

. Shares gained 1.9% to $55.54.

Inverness Medical Innovations

(IMA)

said Friday that it completed its previously announced $230 million acquisition of ParadigmHealth, which provides decision support technologies and coaching for health choices for acutely ill and clinically complex patients, including neonatal intensive care and oncology patients. Shares were up $1.05, or 1.9%, at $55.05.

Elsewhere, the Food and Drug Administration cleared specialty pharmaceutical company

Akorn's

(AKRX) - Get Report

Decatur, Ill. manufacturing facility after a compliance inspection. The company said that as a result of the inspection, it's now eligible for pending product approvals in its ophthalmic, ampoule, liquid vial and lyophilization production filling suites at the Decatur location. Shares rose 54 cents, or 8.2%, to $7.16.

Deerfield Capital

(DFR)

shares bounded 12% higher to $9.18 on news that the Chicago specialty finance company had completed its acquisition of Deerfield & Company LLC from

Triarc Companies

(TRY)

. Deerfield paid Triarc and minority shareholders a total of about $75 million in five-year senior notes and converted preferred DFR stock. Shares of Triarc were up 5.3% to $8.80.

Also gaining was

CPI Corp

(CPY)

, shares of which jumped 14% to $24.16. The gain in share price was a recovery from Thursday's loss after the St. Louis, Mo.-based owner and operator of Sears Portrait Studios announced third-quarter earnings. The company posted a per-share loss of $1.57 vs. a loss of 15 cents a share in 2006, which CPI attributed to its acquisition of portrait brand PictureMe.