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eBay shares plunge in Frankfurt trade

admin — Wed, 21 Apr 2010 19:48:01 +0000

FRANKFURT (Reuters) – Shares in internet auctioneer eBay (EBAY.O) plunged in Frankfurt floor trade on Thursday, after the company forecast results for the remainder of 2010 below Wall Street expectations.

Asian Markets

By 0712 GMT, Frankfurt-listed shares in eBay (EBAY.F) were down 8.1 percent.

“The forecast for eBay fell short of analysts’ expectations,” a Frankfurt-based trader said.

Qualcomm (QCOM.O), the world’s biggest maker of cellphone chips, also fell 8.6 percent in Frankfurt (QCOM.F), after forecasting lower-than-expected revenue late on Wednesday.

(Reporting by Christoph Steitz)

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IBM raises outlook but shares retreat

admin — Mon, 19 Apr 2010 22:29:26 +0000

NEW YORK (Reuters) – IBM (IBM.N) raised its full-year outlook and reported stronger-than-expected quarterly results as companies increased spending on software and IT consulting, but the news failed to excite investors who had already begun to price in a strong recovery.

Shares of IBM fell 2 percent despite the positive numbers, mirroring the performance of other tech companies like Oracle Corp (ORCL.O) and Google Inc (GOOG.O), whose investors had also locked in profits following a rally ahead of results.

“IBM’s shares have been particularly strong over the past week with investors anticipating the strong results, so there could be some near-term profit taking,” said Edward Jones analyst Andy Miedler.

“However, I think these results are strong. We like to see they have the confidence in their business so early in the year.”

International Business Machines Corp, the world’s largest technology services provider, raised its 2010 profit target to “at least $11.20″ from a previous forecast of “at least $11.”

Many analysts had not expected the company to change its outlook so early in the year, and the average Wall Street estimate had been for full-year EPS of $11.12.

Some analysts were slightly disappointed by IBM’s quarterly gross margin of 43.6 percent. Collins Stewart analyst Louis Miscioscia had forecast 44.2 percent, but even he kept a “buy” rating and $160 price target on the stock after the results.

IBM said its first-quarter profit rose to $2.6 billion, or $1.97 per share, from $2.3 billion, or $1.70 per share, a year earlier. Analysts on average had expected EPS of $1.93, according to Thomson Reuters I/B/E/S.

Revenue rose 5 percent to $22.9 billion, accelerating from a 1 percent year-on-year gain in the previous quarter. Wall Street had forecast revenue of $22.7 billion.

Analysts said they were particularly impressed by its 18 percent rise in consulting services signings and 11 percent rise in software revenue.

IBM over the past decade has been shifting its focus from increasingly commoditized hardware to more lucrative software, IT services and consulting businesses.

“Margins were slightly below what we expected but they made up for it in other areas. Importantly, we saw continued momentum in software and consulting that to me was important,” said Peter Misek, analyst at Canaccord Adams. “This wasn’t a blockbuster or blowout report but it was solid.”

Chief Financial Officer Mark Loughridge said the consulting deals it had recently won showed customers were now more willing to make longer-term investments in their business. Many had been focused on short-term, cost-cutting measures in the wake of the financial crisis.

“We’re starting to see a shift in customer buying patterns toward more transformational offerings, which are reflected primarily in our consulting business,” he said on call with analysts.

Revenue growth was fairly consistent across geographic segments, it said, adding that government spending provided tail wind.

While services revenue rose 4 percent and systems and technology revenue rose 5 percent, although services signings fell 2 percent, IBM said.

Shares of IBM fell 2.1 percent to $129.40 in extended trading following the results report. It had closed up 1.22 percent at $132.23 on the New York Stock Exchange. The stock is still up about 6 percent from a low in February.

(Reporting by Ritsuko Ando, additional reporting by Jim Finkle, Gabriel Madway and Ian Sherr; Editing by Richard Chang and Tiffany Wu)

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London shares rise (AFP)

admin — Thu, 01 Apr 2010 09:57:29 +0000

LONDON (AFP) – FTSE 100 shares were firmer at the end of trade on Thursday as commodity prices surged.

London's benchmark index was up 1.15 percent to close at 5,744.89 points.

Lloyds Banking Group (LBG) was the most traded stock, seeing 157 million units change hands, followed by Vodafone, which saw 137 million shares switch owners.

The day's top performer was Petrofac, which added 84 pence — or 6.99 percent — to finish at 1286, followed by Xstrata, which added 51.50 pence — or 4.12 percent — to stand at 1300.

Smith and Nephew was the worst performer, dropping 4.50 pence — or 0.69 percent — to close at 652, followed by Glaxosmithkline, which shed 8.50 pence — or 0.67 percent — to finish at 1257.

Meanwhile, sterling rose against the dollar and the euro

At 17:17, the pound was trading at 1.5275 dollars, rising from 1.5184 at the same time on Wednesday, while the currency stood at 1.1260 euros, ascending from 1.1239 over the same period.

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Rite Aid forecast worse than expected; shares down

admin — Tue, 30 Mar 2010 13:45:10 +0000

NEW YORK (Reuters) – Rite Aid Corp (RAD.N) posted a worse-than-expected quarterly loss and forecast a wider fiscal year loss than Wall Street was anticipating, sending its shares down 8.8 percent.

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The results marked the No. 3 U.S. drugstore chain’s 11th straight quarterly loss, one which the company attributed to a mild cold and flu season that cut down on consumers looking for medications.

Rite Aid has performed worse than larger rivals like Walgreen (WAG.N), which reported improved margins last week, and CVS Caremark Co (CVS.N), even though all three face similar pressures on their earnings.

“We think part of Rite Aid’s consumer base has lagged in terms of economic recovery relative to some of Rite Aid’s peers,” said Leah Hartman, an analyst with CRT Capital Group.

Rite Aid posted a loss of $208.4 million, or 24 cents per shares, in the fourth quarter ended on February 27 from a loss of $2.29 billion, or $2.67 per share, a year earlier.

Analysts on average had forecast a loss of 19 cents a share, according to Thomson Reuters I/B/E/S.

Sales fell 3.6 percent to $6.46 billion. Sales at stores open at least a year fell 2.4 percent, the company said in early March.

Same-store sales of general merchandise sold dropped 2.6 percent, as Rite Aid has had to compete with supermarkets and discount retailers.

The new fiscal year showed some moderation in that decline, with same-store sales falling by 0.1 percent in March. Rite Aid forecast same-store sales would range from a decline of 1 percent to an increase of 1 percent in its fiscal 2011.

The drugstore chain said it expects the economy to remain weak with high unemployment and forecast a fiscal 2011 loss per share of between 41 cents and 65 cents, while analysts expect a loss of 36 cents.

Shares were down 15 cents at $1.55 in late morning trading on the New York Stock Exchange.

FEWER PRESCRIPTIONS FILLED

Rite Aid said prescriptions filled at stores open at least a year fell by 1.7 percent, a key indicator as prescription sales make up two-thirds of total drugstore sales.

“It was a difficult quarter with continued weak consumer demand, a weaker cough, cold and flu season than last year, and continued pressure on pharmacy reimbursement,” Chief Executive Mary Sammons said in a statement.

Sammons is stepping down as CEO in June, but staying on as chairman. She will be replaced by current President and Chief Operating Officer John Standley.

The struggling chain closed 138 stores and opened 17 new stores during the fiscal year, bringing its total store count to 4,780. Chief Financial Officer Frank Vitrano said on a call with analysts that there could be as many as 80 additional store closings this year.

Rite Aid has also had a hard time boosting sales at the Brooks and Eckerd stores it bought from Canada’s Jean Coutu (PJCa.TO) in 2007. The acquisition, which saddled Rite Aid with debt, came just before the recession hit and shoppers cut back spending sharply.

Rite Aid has refinanced debt, trimmed expenses and taken other steps to improve its position, but the acquisition has limited its ability to compete and led to extra expenses linked to the closing of stores.

“You can see that in the kinds of margins Rite Aid has and can see that in the fact they are still closing down stores — it’s a drag,” said Doug Conn, a managing director at Hexagon Securities.

(Reporting by Phil Wahba; additional reporting by Jessica Wohl; Editing by Lisa Von Ahn, Dave Zimmerman)

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Seoul shares slip but defense, tech issues advance (Reuters)

admin — Mon, 29 Mar 2010 17:46:05 +0000

SEOUL (Reuters) – Seoul shares slipped 0.1 percent on Monday, with the sinking of a South Koreannaval ship weighing on sentiment, but continued foreign buying and rises in key technology and auto blue chips lent the market support.

Analysts played down the impact of naval ship incident, as Seoul stocks posted minor losses and as U.S. share reaction to the news was also short-lived.

“Investors appeared to have concluded that the naval ship sinking was not related to North Korea…unless we see drastic developments in the North, such as the crumbing of the current political hierarchy, the market will remain stable,” said Chung Myoung-gi, a market analyst at Samsung Securities.

On Saturday, South Korea all but ruled out the likelihood that North Korea was involved in the sinking of one of its navy vessels near their disputed border.

“Investors will be more focused on key U.S. manufacturing and job data due out later this week, and whether the market posts gains in the coming sessions to hit its earlier high will depend on how that comes out,” Chung added.

Analysts said the market was also helped by news that euro zone leaders won muted approval from financial markets on Friday for a “band aid” agreement to create a safety net for debt-ridden Greece.

The Korea Composite Stock Price Index (.KS11) (KOSPI) was down 0.11 percent at 1,695.88 points as of 0146 GMT, just shy of the psychologically significant 1,700 point level.

Shares in defense issues jumped after earlier reports that the North may have been involved with the naval ship incident.

“The broader market is obviously shrugging off the naval ship incident…but it seems some retail investors are making bets on individual issues that are North Korea-sensitive,” said Y.S. Rhoo, a market analyst at Hyundai Securities, while adding the movements were likely to be short-lived.

Shares in military equipment maker Victek (065450.KQ), a marker of military equipment parts, rose 5.04 percent and Huneed Technology (005870.KS), a manufacturer of wireless communications equipment for military purposes, jumped 7.28 percent.

But inter-Korea cooperation issues fell, with Romanson (026040.KQ), a watchmaker that has a production unit in the Kaesong industrial park in North Korea, shedding 3.15 percent and Kwangmyung Electric Engineering Co Ltd (017040.KS) losing 5.49 percent.

Automakers rose as the won turned weaker against the dollar.

Shares in Kia Motors (000270.KS), the country's No.2 automaker, rose 2.38 percent and Hyundai Motor (005380.KS), the country's No.1, gained 0.43 percent.

Key technology issues also climbed, with LG Display (034220.KS) up 1.03 percent and Hynix Semiconductor (000660.KS) advancing 2.98 percent.

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London shares rise, boosted by Lloyds (AFP)

admin — Sun, 21 Mar 2010 08:05:15 +0000

LONDON (AFP) –
Leading shares rose in early deals on Friday, boosted by state-rescued bank Lloyds' forecast of a return to profit in 2010 after two years of losses.
of top shares gained 0.63 percent to 5,678.21 points in late morning trade.
,” said IG Index analyst Philip Gillett.
jumped 9.25 percent to 60.69 pence.
Partly-nationalised Lloyds forecast that it will return to profitability in 2010 and reported strong business in the first few months of the year.
“In the first 10 weeks of 2010, the group's trading performance has been strong and we are pleased with the group's performance against each area of recent guidance,” Lloyds said in a trading update.
Lloyds, which is 41.3-percent owned by the British government after a huge bailout, suffered a loss of 6.3 billion pounds last year as
soared 60 percent following the takeover of former rival HBOS.
The loss, equivalent to 7.0 billion euros or 9.6 billion dollars, was an improvement from the shortfall of 6.7 billion pounds faced in 2008.
“Overall … the group believes that it will be profitable on a combined businesses basis in 2010,” it added.

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KKR to list shares on NYSE (AP)

admin — Sun, 14 Mar 2010 16:32:42 +0000

NEW YORK – KKR & Co. LP, the parent of private equity firm
.
KKR originally sought a public listing in the U.S. in July 2007, hoping to raise up to $1.25 billion, after competitor
raised $4.1 billion in an initial public offering. KKR shelved that plan due to the financial crisis.
Instead, KKR merged with its European arm, now known as KKR Guernsey, and the combined company traded on the
in October 2009. When KKR begins trading on the
, KKR Guernsey will be dissolved and cease to trade in Amsterdam.
that it will register 204.9 million common units, worth about $2.21 billion, and that it will trade in the U.S. under the symbol “KKR.”
Guernsey stockholders will swap their shares for units in the U.S.-listed company. They will hold a 30 percent stake in the public KKR trading on the NYSE. At the end of 2009, there were about 2,000 KKR Guernsey unit holders.
The remaining 70 percent of the company will be owned by the senior executives who currently have a stake in the company. They own about 478.1 million common units, KKR said.
KKR’s plan sidesteps a public stock offering — at least for now — and allows it to avoid an ugly U.S. IPO market. Its move to the NYSE comes as Blackstone’s stock price languishes more than 50 percent below where it debuted, and companies trying to raise money through IPOs have had a tough time capturing investor interest.
, even without raising capital, has a number of benefits. If the shares perform well, those market gains could help fund takeovers. Also, an NYSE listing would make it easier for founders
, who together hold a majority of shares with voting rights, to pare down their stakes because it’s much easier to buy and sell shares on the NYSE than on Amsterdam’s smaller exchange, said Steven Kaplan, a finance professor at the University of Chicago’s business school. Moreover, it’s more convenient for the company to pay employees in its principal office in New York with U.S.-listed shares, he said.
KKR buys companies and then sells them to the public or other investors. In November, it took discount retailer
. public, although it retained a majority stake. In January, it acquired British pet retailer Pets At Home. Its holdings include retailer
., hospital operator HCA Inc., mattress maker
. and software company
.
At the end of 2009, KKR had
of $52.2 billion, half of which was invested in North America.
A KKR spokesperson declined to say when shares could start trading in New York.

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Boston Scientific suspends ICD sales; shares slump

admin — Sun, 14 Mar 2010 15:05:42 +0000

(Reuters) – Boston Scientific Corp said it has suspended sales of its implantable heart defibrillators after failing to notify regulators of changes in how it manufactures the devices. It said patient safety was not at risk.
The company’s shares fell 16.45 percent to $6.50 in midday trading on the New York Stock Exchange.
Boston Scientific said it had voluntarily stopped shipments and was retrieving all inventory of its implantable cardioverter defibrillators (ICDs) and cardiac resynchronization therapy defibrillators (CRT-Ds). The devices coordinate heart pumping through electrical pulses.
“We are acting voluntarily and expeditiously to resolve this situation, and we have seen no evidence of any risk to patient safety,” Boston Scientific Chief Executive Ray Elliott said in a statement.
The company said it found two errors in its filing procedures with the U.S. Food and Drug Administration for changes made to its manufacturing processes.
In the first instance, the company’s regulatory department did not see the need for a supplemental filing, said Boston Scientific spokesman Paul Donovan. In the second error, a filing was incomplete, he said.
The company has informed the FDA of the errors and plans to work closely with the agency to quickly resolve the situation.
Analysts said the suspension of sales of ICDs and CRT-Ds, which generate about 15 percent of Boston Scientific’s revenue, is a blow to the company’s attempts to regain momentum as it works to pay down debt, settle costly legal issues and accelerate growth.
Last month, the company announced a restructuring of its cardiovascular and cardiac rhythm management divisions and said it would cut its work force by as much as 10 percent.
“We believe today’s announcement will have a longer-term effect on the company’s ability to drive market share gains and brand loyalty among the physician community,” Goldman Sachs analyst David Roman said in a note to clients.
Products affected by the sales suspension include the Cognis, Confient, Livian, Prizm, Renewal, Teligen and Vitality device brands. Pacemakers are not affected, and the company is not recommending removal of any of the devices.
The actions could have a material impact on the company’s previously issued guidance, including revenue, operating profit and cash flow for the first quarter and full year 2010, Boston Scientific said.
Donovan declined to elaborate on how long the sales suspension would last or how removing the products from the market may impact the company’s earnings.
Yields on Boston Scientific bonds widened sharply as their prices fell. Yields on its 4.5 percent notes due in 2015 rose to 280 basis points over U.S. Treasuries from 230 basis points at Friday’s close, according to MarketAxess. The bonds were some of the day’s worst performers.
Shares of rival heart device makers St Jude Medical and Medtronic Inc rose amid speculation that those companies stand to pick up market share from Boston Scientific. St Jude stock was up 6.85 percent to $40.07, while Medtronic rose 4.19 percent to $45.78.
(Reporting by Susan Kelly, additional reporting by Dena Aubin, Debra Sherman and
, Maureen Bavdek and John Wallace)

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General Growth shares rise in Big Board return (Reuters)

admin — Mon, 08 Mar 2010 05:10:59 +0000

.N) rose on Friday, their first day back on the
, even as the U.S. mall owner operates under bankruptcy protection.
were up 2.3 percent to $14 in late morning trade. The shares had hit a high of $14.40 earlier in the session.
U.S. REIT Index (.RMZ), which was up 1.3percent.
Although rare, General Growth is not alone as having its shares trade on the Big Board while operating under
.
A representative of the exchange did not know how many of the approximately 2,425 companies trading on the New York Stock Exchange were in chapter 11.
But there are a handful of companies, such as
W.R. Grace
. However, unlike those companies, General Growth had been delisted after its April filing and has now returned.
To be listed on the Big Board, a company has to reach certain parameters, such as valuation.
By market cap value, General Growth is over $4 billion, making it the 15th-largest publicly traded REIT. Before General Growth's re-entry, 128 REITs traded on the NYSE, according to the
.
and his family or family's trust.
.N), Fidelity Management & Research and
, according to
.

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General Growth Properties to relist shares on NYSE (AP)

admin — Tue, 02 Mar 2010 20:32:36 +0000

., which last year filed the largest U.S. real estate bankruptcy case in history, said Tuesday that it applied to relist its shares on the
.
General Growth said its shares will start trading on the NYSE on Friday under the ticker symbol “GGP.” General Growth shares currently trade over the counter.
., which controls some 382 properties worldwide.
General Growth rebuffed the unsolicited offer from Simon as being too low. The company then turned to
. and reached a deal that will speed its exit from bankruptcy protection. Speculation had swirled for weeks that General Growth might turn to Brookfield, which has been looking to expand its slate of U.S. retail properties and last year acquired an undisclosed stake in the company.
General Growth, the second-largest shopping mall operator in the U.S., filed for bankruptcy last April after it expanded aggressively during the real estate boom. The company amassed $27 billion in debt, but was left unable to refinance its short-term loans after financing dried up.
in 43 states. It also has ownership in
and commercial office buildings.

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