Eli Lilly Wins New Approvals for Drug PipelineShares of Eli Lilly ( LLY) were up nearly 3% in early trading after the company announced approvals for Symbyax for the acute treatment of treatment-resistant depression. The company also announced the FDA approved two new combination indications for Zyprexar (olanzapine) and fluoxetine for the acute treatment of bipolar depression and treatment resistant depression.
Tiffany said it expects a sales decline of around 11% in 2009, and sees full-year earnings between $1.50 and $1.60 per share from continuing operations. On average, Wall Street analysts are expecting the company to earn $1.73 per share for the year. Tiffany plans on opening 13 new stores in 2009, but said it is shutting its struggling Iridesse pearl jewelry stores chain. This closure could eliminate about 800 employees, or around 10% of Tiffany's total workforce. We removed the shares of TIF from our "Recommended" list on Sept. 17, when the stock traded at $38.98. The company has a dividend yield of 3.36%, based on Friday's closing stock price of $20.23. The stock's next level of support appears to be in the $12 area. If the stock can firm up and begin to move higher, we see overhead resistance coming in at around the $26-$27 price area. We would remain on the sidelines. Tiffany & Co. is not recommended at this time, holding a Dividend.com rating of 3.2 out of 5 stars. Walgreen Profit Falls 7% on Restructuring, Sales Rise 7% Retail drugstore chain Walgreen ( WAG) reported fiscal second-quarter profit Monday that fell 7% from the year-ago period, hampered by restructuring charges. Walgreen said it earned $640 million, or 65 cents per share, in the quarter, compared to $686 million, or 69 cents per share, in the year-ago period. These results include restructuring expenses of $93 million, or 6 cents per share, which, in turn, saved the company 2 cents per share.
Sales grew 7% in the period to $16.48 billion from $15.39 billion. On average, Wall Street analysts, excluding items, expected profit of 66 cents per share on sales of $16.42 billion. Walgreen is currently in the midst of a large-scale restructuring plan that expects to save the company $1 billion per year by 2010. The plan includes eliminating about 1,000 jobs. Shares of Walgreen stock were up $2.25, or +9.3%, in morning trading Monday. We have avoided shares of WAG since our early June coverage began, when the stock was trading at $35.53. The company has a 1.85% dividend yield, based on last night's closing stock price of $24.29. The stock has long-term technical support around the $19 level, with overhead resistance coming in at the $29-$30 area. We would remain on the sidelines for now. Walgreen Company is not recommended at this time, holding a Dividend.com rating of 3.2 out of 5 stars. Dailmer AG Issues New Shares; Sells Stake to Abu Dhabi Shares of Dailmer AG ( DAI) were up 2% in early trading after the company announced Aabar Investments PJSC of Abu Dhabi as a major investor. Daimler increased the share capital by approximately 10%, with the exclusion of subscription rights of existing shareholders. After acquiring all new shares, Aabar will hold approximately 9.1% of the new share capital. The issue price of the shares is euro 20.27, resulting in an equity contribution for Daimler of euro 1.95 billion. The company recently announced it lost 1.53 billion euros in the quarter, or nearly $2 billion U.S. dollars, compared to a profit of 1.7 billion euros in the same quarter of the previous year. We have avoided shares of DAI since our early June coverage began, when the stock was trading at $70.12. The company has a 2.11% dividend yield based on Friday night's closing stock price of $28.45. The stock has technical support near the all-time low level of $24 per share. If the shares can firm up, we see overhead resistance around the $36-$39 level. We would remain on the sidelines for now. Dailmer AG is not recommended at this time, holding a Dividend.com rating of 2.8 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.