Stocks in Motion: Chalone

Updated from 11:34 a.m. EDT

Shares of Ultimate Electronics ( ULTE) were among the Nasdaq's losers Monday, falling 53.7% after the company warned that it is mulling a possible reorganization.

The retailer's lenders previously said they would need more reserves against various loans. And although the company's Thanksgiving weekend sales showed improvement, fourth-quarter sales have been "weak," Ultimate said. The company, as a result of that fourth-quarter weakness, anticipates that it will be in violation of one or more financial covenants under its credit facility. The company intends to ask for a waiver from its lenders, it said.

Ultimate said lower sales, the more stringent reserve requirements and potential loan covenant violation raise "substantial doubt about its ability to continue as a going concern." As a result, the company is exploring all of its strategic alternatives, including a possible reorganization of its business. Shares traded down $1.30 to $1.11.

Chalone Wine Group ( CHLN) rose 17.5% after the company said it received an acquisition proposal that is superior to the $11.75-a-share merger price offered by Domaines Barons de Rothschild. The winemaker said that Rothschild has until Dec. 17 to present a counter offer to the $13.75-a-share offer received by the undisclosed suitor. If Rothschild does not offer a better deal, Chalone said it would terminate its agreement with Rothschild and pay a breakup fee of $2.475 million, which would be paid by the new acquirer. Shares traded up $2.06 to $13.85.

Shares of Tuesday Morning ( TUES) fell 17.3% after the retailer warned that fourth-quarter earnings would fall below expectations. The company expects earnings of 83 cents a share. Analysts surveyed by Thomson First Call had been expecting earnings of $1.05 a share. For the full year, the company expects earnings of $1.44 a share on sales of $890 million. Analysts had been expecting earnings of $1.67 on sales of $936.1 million. The company said weakness in some of its key decorative home categories and in some of its seasonal merchandise led to the bleak outlook. Shares traded down $6.27 to $30.01.

Stelmar Shipping ( SJH) rose 7.6% after the company agreed to be acquired by Overseas Shipholding Group ( OSG) for $843 million in cash, plus the assumption of debt, which brings the total value of the deal to $1.3 billion. Stelmar shareholders will receive $48 a share in cash for each share of Stelmar they hold. The $48 price tag represents a premium of 8.3% over Friday's closing price of $44.32. The deal is expected to close by the end of January. Shares of Stelmar traded up $3.36 to $47.68, while shares of Overseas Shipholding traded up $4.59 to $61.10.

After spending most of the day in the negative, shares of Greenbrier ( GBX) ended the day in the black -- after the company said it would sell, from time to time, up to 6 million shares of stock. The disclosure was made in a Securities and Exchange Commission shelf registration statement. The supplier of railroad transportation equipment and services said it would use the proceeds to fund general corporate expenses. Shares traded up 14 cents to $32.70.

NYSE volume leaders included Lucent ( LU), down 9 cents to $3.71; Sprint ( FON), up 30 cents to $24.44; Pfizer ( PFE), up 7 cents to $27.16; Motorola ( MOT), up 85 cents to $17.15; Time Warner ( TWX), up 45 cents to $18.93; and General Electric ( GE), up 79 cents to $37.48.

Nasdaq volume leaders included Oracle ( ORCL), up $1.35 to $14.63; Sirius Satellite Radio ( SIRI), up 45 cents to $8.04; Microsoft ( MSFT), up 17 cents to $27.25; Intel ( INTC), up 7 cents to $22.63; Cisco ( CSCO), down 15 cents to $19.27; PeopleSoft ( PSFT), up $2.47 to $26.42; and Nextel Communications ( NXTL), up 23 cents to $29.99.

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