Shares of CarMax ( KMX) were up nearly 10% in early trading, after the used-car retailer reported fourth-quarter profit rose 72% to $37.5 million, or 17 cents per share, for the three months ended Feb. 28, compared with $21.8 million, or 10 cents per share a year ago. The profit part of the report was good, but revenue did fall 28% to $1.47 billion from $2.04 billion a year ago, as same-store sales tumbled 26% during the quarter. The company said used-vehicle sales dropped 26.8%, while new-vehicle sales fell 41.6%. Looking ahead, management decided to pull back from offering any guidance, blaming unprecedented declines in traffic and sales and volatility in the credit market. Shares of KMX are more than 50% off all-time highs of $28, hit in January 2007. The stock has technical support in the $7-$9 price area. If the shares can stabilize, we see overhead resistance in the $16.50-$18 price area. We do not currently rate this non-dividend paying stock, but we do follow the company closely.
Pfizer Stops Breast Cancer Trial for Sutent Drug
Pfizer ( PFE) shares were down slightly in early trading after the pharmaceutical company halted a late-stage study of the cancer drug Sutent, which treats a form of advanced breast cancer. The drug has been approved to treat advanced forms of gastrointestinal and kidney cancers, and was the company's bestselling cancer drug, with $847 million in sales in 2008. The company will continue Sutent trials for advanced breast cancer treatment in three late-stage and two mid-stage trials.