Shares of Tyco ( TYC) were among the NYSE's losers Friday, falling 9% after the conglomerate cut its first-quarter earnings guidance and laid out plans for a breakup into three separately traded companies. Tyco now sees first-quarter earnings from continuing operations of about 38 cents a share, down from an earlier view of 40 cents to 42 cents a share. Analysts polled by Thomson First Call had been projecting earnings of 42 cents a share. For all of 2006, the company now sees earnings of $1.85 to $1.92 a share, below Wall Street's projection of $2.01 a share. As for the company's business reorganization, Tyco plans to separate its health care and electronics businesses from the rest of the company. "After a thorough review of strategic options with our board of directors, we have determined that separating into three independent companies is the best approach to enable these businesses to achieve their full potential," the company said. The breakup plan is expected to cost about $1 billion. Shares recently were trading down $2.71 to $27.60. Insteel Industries ( IIIN) rose 7% after the maker of steel wire reinforcing products announced a $15 million share repurchase plan. Based on Jan. 12 closing prices, the buyback program represents about 9% of the company's outstanding stock. "Our strategy for the use of operating cash flow includes paying dividends, making capital investments and strategic acquisitions, and opportunistic repurchases of the company's stock, all with the intent of enhancing shareholder value," the company said. Insteel also increased its existing revolving credit facility to $100 million from $75 million and extended the maturity date by two years to June 2010. Shares were trading up $1.22 to $19.35. Shares of Linn Energy ( LINE) rose 9% in their first day of trading. The independent natural gas company, in the first initial public offering of 2006, priced 11.75 million units at $21 apiece, resulting in net proceeds of about $223 million. The pricing came in at the high end of the proposed range of $19 to $21 a unit. About $122 million of the proceeds will be used to pay debt. Shares were trading up $1.27 to $22.97.
American Retirement ( ACR) rose 10% after the provider of senior-care services predicted it would earn 62 cents to 64 cents a share during 2006. The estimate includes 12 cents a share in stock-based compensation expense. Analysts, who usually exclude stock-compensation costs from estimates, are projecting 2006 earnings of 71 cents a share. American Retirement expects 2005 earnings to be near the First Call estimate of 48 cents a share, "even with fourth quarter's Hurricane Wilma expenses and increased non-cash compensation costs driven by our increased stock price during the fourth quarter," the company said. Shares were trading up $2.46 to $27.15. Shares of Pinnacle Entertainment ( PNK) fell 2% after the casino operator priced 6 million newly issued shares at $27.35 apiece, resulting in gross proceeds of about $164 million. The sale is expected to close on Jan. 19. Pinnacle plans to use proceeds to fund resort upgrades and general corporate needs. Shares were trading down 51 cents to $27. NYSE volume leaders included Lucent Technologies ( LU), unchanged at $2.71; Nortel Networks ( NT), down 9 cents to $3.28; General Motors ( GM), down 34 cents to $20.62; Ford ( F), up 5 cents to $8.61; Advanced Micro Devices ( AMD), down $1.43 to $33.92; Time Warner ( TWX), down 16 cents to $17.32; and Pfizer ( PFE), up 10 cents to $24.68. Nasdaq volume leaders included JDSU ( JDSU), up 17 cents to $2.96; Sirius Satellite Radio ( SIRI), up 10 cents to $6.30; Cisco Systems ( CSCO), up 1 cent to $19.21; Sun Microsystems ( SUNW), up 14 cents to $4.54; Intel ( INTC), down 3 cents to $25.94; Microsoft ( MSFT), up 3 cents to $27.17; Applied Materials ( AMAT), down 72 cents to $20.10; Apple Computer ( AAPL), up $1.01 to $85.30; Conexant Systems ( CNXT), down 8 cents to $3.21; Red Hat ( RHAT), down 90 cents to $28.99; and Oracle ( ORCL), down 11 cents to $12.41.