The Day's Winners
added 17% to $3.64 after the company reaffirmed its second-quarter guidance and announced a $20 million stock buyback program. The customer relations systems designer said it still expects between $49 million and $53 million in fee revenue and $6 million to $9 million in EBITDA for the quarter. Digitas said its share repurchase program will allow it to buy stock in both the open market and in private transactions when it sees fit.
Shares of marine transport services company
jumped 19% to $7 on news that it has sold 12.5 million shares for $8 each to
DLJ Merchant Banking Partners
, raising $100 million. The sale represents a 35% premium to Seabulk's Thursday close of $5.91, and it gives DLJ 51% ownership of the company. The same investors also agreed to purchase all of Seabulk's stock and warrants held by Loomis Sayles & Co. for $8 a share, bring the group's total stake in the company to 73%. Seabulk, which filed for bankruptcy protection in 1999, said the $280 million in proceeds will be used to repay bank debt, repurchase senior notes and provide growth capital.
Sound Federal Bancorp
was climbing 21% to $23.12 after the company said it will convert its mutual holding company structure into a capital stock corporation, selling the stock to depositors and increasing the company's publicly traded shares. The bank's holding company will offer the 59% of the bank's stock that it kept after Sound Federal's initial public offering. The conversion and offering are expected to close in the fourth quarter.
was gaining 4% to $8 after the company upped its first-quarter earnings guidance by 10 cents. The chemical film maker now expects to earn 20 cents a share, up from earlier guidance of 10 cents and ahead of analysts' estimates of 12 cents. The stock gained ground despite a debt rating downgrade by Moody's, who cut the company's long-term debt rating to Ba2 from Ba1 on liquidity concerns.
Nuclear pharmacy services provider
tacked on 11% to $31.25 on news that it would be acquired by
for $870 million in stock. Syncor shareholders will receive 0.52 shares of Cardinal Health stock for each share they own, a 9% premium to Syncor's Thursday close of $28.21. Cardinal will issue about 14 million shares and will assume about $202 million of Syncor debt.
The Day's Losers
Shares of mortgage banker
American Home Mortgage Holdings
dropped 16% to $11.44 after the company announced acquisition plans and revised down its 2002 outlook. American said it plans to acquire loan maker
for $37 million in cash, funded by a 2.5 million to 3 million equity offering. The company said the acquisition and the delay in approval of its
acquisition will drop its full-year earnings to $1.95 to $2 a share, down from previous estimates of $2.25 to $2.35 a share.
dropped 9% to $11.17 after the company said it had received an informal request from the
Securities and Exchange Commission
for information relating to potential "round trip" trades. Aquila said it would cooperate with the request, but added that it hasn't engaged in any fabricated wash trades and that all of its trades were done for legitimate business purposes. The company noted that similar information requests have been sent out to other wholesale energy companies as part of a broad investigation.
shed about 21% to $7.03 after the stock was downgraded to neutral from buy by Salomon Smith Barney on growth concerns. The brokerage frim said it was concerned that orders have weakened in the last few months, which could impact revenue. Salomon cut its 2003 estimate to a loss of 15 cents a share from earnings of 5 cents and lowered its price target on the stock to $9 from $18.
was dropping 4% to $61.88 after the company slashed its second-quarter and full-year outlook due to a poor spring domestic season, a stronger Canadian dollar and lower natural gas prices. Potash said it now expects EPS of 20 cents in the second quarter and $1.40 for the year, down from previous guidance of 50 cents and $2, respectively. The company said strength in the Canadian dollar as compared to the U.S. dollar will cut its foreign exchange gain by 10 cents for the quarter, and a weaker than expected spring season caused one million fewer corn acres to be planted.
Triton PCS Holdings
was down 28% to $5.26 on a downgrade from Merrill Lynch. The brokerage cut its recommendation to medium-term reduce/sell and long-term neutral on the stock amid industry risk concern. Merrill said pricing risks remain, as do long-term industry issues, and the consolidation picture hasn't gotten any clearer. Merrill also cut
to medium-term reduce/sell on news that Sprint PCS had cut its subscriber estimates.