Markets & Finance

Baidu.com Skids


Chinese search engine company Baidu.com (BIDU) plummeted 28% after Piper Jaffray initiated coverage with an underperform opinion and a $45 target price. Goldman also started coverage with an underperform opinion.

Linens'n Things (LIN), which has market cap of about $1.2 billion, is reportedly considering a sale. The company, whose shares have risen just under 20% since the beginning of the month, is working with CS First Boston to examine its options, according to the Financial Times.

CEC Entertainment (CEC), operator of Chuck E. Cheese's restaurants, said that its sales through the first ten weeks of the third quarter decreased 5.0% at stores that had been open longer than a year. If the sales trend continues, CEC expects its third quarter earnings per share to be between 43 cents and 47 cents.

M.D.C. Holdings (MDC) noted that construction delays in Arizona and Nevada will impact the number of homes closed in the third quarter. The company sees its third quarter earnings per share exceeding the third quarter 2004's $2.36, but being below the lowest analyst estimate of $2.65. M.D.C. also sees 2005 earnings per share exceeding the $10.44 consensus.

Genentech (DNA) said its planned interim analysis of Herceptin plus chemotherapy showed a significant reduction in the risk of disease recurrence in early-stage breast cancer.

Onyx Pharmaceuticals (ONXX) and Bayer (BAY) announced that the Food and Drug Administration has granted priority review status to their application for the new kidney cancer drug sorafenib.

General Electric (GE) is preparing to restructure or sell parts of its historic industrial businesses in a fresh strategy aimed at unlocking shareholder value within the U.S. conglomerate, according to the Financial Times.

TJX Companies (TJX) said its CEO and President Ted English is resigning. The company named Ben Cammarata TJX unit CEO. S&P believes the event increases risk in TJX shares, and cut its target but keeps its hold opinion.

Delta Petroleum (DPTR) posted 3 cents vs. 2 cents fourth quarter earnings per share on a sharp revenue rise. The company's earnings per share were limited by an increase in expenses.

Medimmune (MEDI) agreed to buy Cellective Therapeutics Inc. for an undisclosed cash amount. As a result of the acquisition, the company will take a one-time process R&D charge that will reduce its 2005 earnings per share by about 20 cents. Medimmune now sees 4 cents to 10 cents 2005 earnings per share.

M/I Homes (MHO) said that despite permitting, construction, and utility delays in the Florida market, it continues to believe that 2005 will be its tenth consecutive record year, and reiterates $6.75 to $6.95 2005 earnings per share guidance.

Education Management (EDMC) said in its 10-K that the Securities and Exchange Commission advised the company in July 2005 that it was conducting an informal inquiry. Education Management believes the inquiry was initiated following stock trades by one of its former directors.

Excelligence Learning (LRNSE) said it sees about $500,000 to $600,000 lower pre-tax operational income for previously filed 2004 results of $3.1 million due to certain accruals. The company will further delay the filing of its second quarter 2005 10-Q. Its CFO resigned.

NuCO2 (NUCO) said that it expects Hurricane Katrina to impact its fiscal year 2006 earnings before interest, taxes, depreciation and amortization by approximately $1 million due to a combination of temporary, full year revenue, and cost impacts as well as the impairment of assets.

PolyOne (POL) said it sees its shipment volume for the third quarter as little changed, instead of the previously expected 1% to 3% higher shipping volume.

Biomet (BMET) said the Food and Drug Administration issued an approvable letter for its C2a-Taper Acetabular System, which is a hip replacement device. S&P reiterated its hold opinion.

Sears Holdings(SHLD) set a $500 million stock buyback.

Premiere Global Services (PGI) said it cut its 2005 view for earnings per share from continuing operations to 66 cents to 67 cents, excluding charges, on $494 million to $498 million in revenue. The company cited prolonged regulatory uncertainty concerning its legacy fax business, as well as seasonal softness. CIBC cut its estimates and price target on the stock.

Image Entertainment (DISK) said that Lions Gate Entertainment (LGF) has made an unsolicited proposal to enter into a negotiated deal to acquire all of Image Entertainment's stock. Lions Gate has acquired approximately 19% of Image Entertainment's shares to date.

Select Comfort (SCSS) said its long-term target for sales growth is 7%-12% for stores that have been open longer than a year, and the company expects those sales to be at the upper end of that range for the third quarter. The company also reaffirmed $1.00 to $1.08 2005 earnings per share.

Brady (BRC) raised its quarterly dividend to 13 cents from 11 cents. The company authorized the buyback of up to 800,000 shares.

Infinity (IFNY) announced that Infinity Oil and Gas of Texas and Infinity Oil & Gas of Wyoming recently contracted three additional drilling rigs. Now it has 4 drilling rigs currently under contract.


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