Celgene Shares Hit Hard on Warning
were down nearly 15% after the biotech company said that first-quarter and full-year profit and sales would miss Wall Street expectations.
The company is expecting revenue to be about $600 million in the quarter, below expectations for $647.1 million. The full-year EPS is expected to come in at the low end of the $2.05 to $2.15 per share range, missing the consensus for $2.17.
Management cited the weak global economy for the lighter forecast.
The company is nearly 50% of all-time highs of $75 a share hit last summer. The company has broken through key technical support of $40 this morning and there is quite a gap down to the $20 mark to find another significant support area.
If the shares can manage to firm up, we see overhead resistance around the $45-$48 levels. We do not currently rate this stock, but do follow the name and biotech sector very closely.
Celgene does not currently pay a dividend.
Danaher Shares Downgraded by JPMorgan
were down nearly 3% in early trading after the company's shares were downgraded to neutral from overweight by JPMorgan, which said continued outperformance relative to peers could be difficult.
The company recently announced that fourth-quarter profit fell nearly 5% to $305.7 million, or 92 cents a share from $320.2 million, or 97 cents a share in the fourth quarter of 2007.
We have avoided shares of DHR since our early June coverage began, when the stock was trading at $79.19. The company has a dividend yield of .22%, based on Friday's closing stock price of $54.22.
The stock appears to have technical support in the $41-$46 price area. If the shares can firm up, we see overhead resistance around the $62 level. We would remain on the sidelines for now.
Danaher is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
Fidelity National to Acquire Metavante Technologies
Fidelity National Information Services
, which provides technology and payment services to the financial services industry, said Wednesday that it is acquiring
( MV) in an all-stock deal.
The $2.94 billion price tag for Metavante represents about a 23% premium on the company's Tuesday closing stock price of $19.96. Current Metavante shareholders will receive 1.35 shares of Fidelity National stock for each share of Metavante stock they own.
Metavante provides banking and payment technologies for approximately 8,000 financial firms, which fits in well with Fidelity National's current offerings.
Jacksonville, Fla.-based Fidelity National, which should not be confused with unrelated Boston-based Fidelity Investments, said that it expects to see $260 million in cost synergies as a result of the deal, which is expected to close in the third quarter of 2009.
The two companies plan to combine their management teams and board of directors, with current Fidelity National CEO Lee Kennedy taking on the executive vice chairman role, overseeing the integration of the two companies, while current Metavante CEO Frank Martire will be named president and CEO of Fidelity National.
Shares of Fidelity National fell 87 cents, or -4.8%, in late morning trading Wednesday, while Metavante shares jumped $2.32, or +11.62%.
We have avoided shares of FIS since our early June coverage began, when the stock was trading at $40.11. The company has a dividend yield of 1.10%, based on last night's closing stock price of $18.20.
The stock has technical support near all-time lows of $12-$15. If the shares can begin to firm up, we see overhead resistance around the $21-$23 levels. We would remain on the sidelines for now.
Fidelity National Information Services is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
Worthington Industries Third-Quarter Steel Profit Drops 92%
are flat in early trading, following the company's third-quarter report where profit plummeted 92% to $1.6 million, or 2 cents per share, compared with $18.3 million, or 23 cents per share, a year earlier.
The company said revenue fell 31%, to $501.1 million, down from $725.7 million, as sales declined across all segments. Management pointed to the global economic slowdown as well as slowing construction activity.
We removed shares of WOR from our "Recommended" list back on July 15 when the stock was trading at $16.98. It had been put on the list in early June at the $19.07 level.
The company has a 7.81% dividend yield, based on last night's closing stock price of $8.71. The company has critical long-term support at the $8 level. If that breaks, there is no cushion to how far it could fall.
If shares can consolidate at these current levels and begin to move up, the $13-$16 area is where there would be overhead resistance. We would remain on the sidelines for now.
Worthington Industries is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.