Manitowoc Shares Plunge on Pulled Guidance

Shares of Manitowoc ( MTW) are down nearly 30% in early trading after the crane-and-food-service-equipment manufacturer said it no longer expects to meet its previous guidance for full-year earnings and sales.

The company has pulled its guidance based on recent weakness in crane sales, as well as possible lower-than-expected proceeds from the sale of its global ice machine business.

Management said it continues to cut costs by reducing its workforce, cutting production and limiting its capital expenditures, but still sees next quarter's EPS coming in more than 50% below consensus estimates.

We have avoided shares of MTW since our early June coverage began, when the stock was trading at $42.55. The company has a 1.74% dividend yield, based on Friday's closing stock price of $4.61, and is trading near all-time technical lows. If the shares can firm up and rebound, we see overhead resistance in the $6-$8 price area. Shares are way off of all-time highs of $49 hit in October 2007. We would look elsewhere for better investment opportunities at this time.

Manitowoc is not recommended at this time, holding a Dividend.com Rating of 2.5 out of 5 stars.

Gap Stores Recommended by Goldman Sachs

Shares of Gap Stores ( GPS) are down slightly in early trading, despite the retailer being added to Goldman Sachs' "conviction buy" list.

The analyst sees improving sales in coming months at Gap's Old Navy unit, which currently accounts for more than a third of the company's total sales. The analyst raised her price target on the stock to $15 from $14.

We have avoided shares of GPS since our early June coverage began and the stock was trading at $17.17. The company has a 2.60% dividend yield, based on Friday's closing stock price of $13.06. The stock has technical support around the $7 level. If the shares can manage a turnaround, we see overhead resistance at the $15-17 mark. We would remain on the sidelines for now.

Gap Stores is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.

Fifth Third Sells Majority Stake in Payments Processing Unit

Fifth Third Bancorp ( FITB) shares are up slightly in early trading after the company announced it is selling a majority stake in its payments-processing business to global buyout firm Advent International for $561 million.

The business processes electronic payments such as debit, credit and merchant transactions. Fifth Third will retain a 49% stake in the new company, to be called Fifth Third Processing Solutions LLC.

We have avoided shares of FITB since our early June coverage began, when the stock was trading at $16.74. The company has a 1% dividend yield, based on Friday's closing stock price of $3.99. The shares have set new historic lows and there is no technical support to speak of. If the shares can manage to turn it around, we see overhead resistance at the $5-$7 levels. We would look elsewhere for better investment opportunities.

Fifth Third Bancorp is not recommended at this time, holding a Dividend.com Rating of 2.0 out of 5 stars.

CF Industries Rejects Agrium Takeover Bid, Calling Offer `Grossly Inadequate'

In an unsurprising bit of news announced Sunday, fertilizer company CF Industries Holdings ( CF) rejected a recently revised takeover offer from fellow fertilizer maker Agrium ( AGU).

CF's board of directors recommended that shareholders reject Agrium's latest offer, which was recently raised to $35 per share, plus one share of Agrium stock for every share of CF stock. CF's board concluded that Agrium's offer was "grossly inadequate, substantially undervalues CF Industries, and is not in the best interests of CF Industries and its stockholders."

Instead, CF said it plans to continue with its own takeover bid for Terra Industries ( TRA). CF Industries CEO Stephen R. Wilson said that, "We are confident that both our stockholders and Terra's stockholders support our proposed business combination."

Terra's board of directors is set to vote on the proposed buyout on May 15 during its annual meeting.

CF Industries stock fell $3.31, or 4.52%, in afternoon trading Monday, part of a broad market decline.

CF Industries Holdings is not recommended at this time, holding a Dividend.com Rating of 2.9 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.

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.

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