Continue reading Biogen Idec names new chairman, announces positive drug test results

Biogen Idec names new chairman, announces positive drug test results originally appeared on BloggingStocks on Fri, 11 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• AK Steel Holding Corp. (NYSE: AKS) posted a smaller-than-expected Q2 net loss as steel prices rise.
• Boston Scientific Corp. (NYSE: BSX) posted a better-than-expected Q2 profit on strong overseas sales.
• Caterpillar Inc. (NYSE: CAT) shares jumped after it beat earnings, missed revenues, and offered guidance.
• DuPont (NYSE: DD) shares declined after it posted a higher-than-expected profit but lower revenue.
• Eaton Corp. (NYSE: ETN) disappointing results were a sign that the bulls are in charge, said Jim Cramer.
• General Electric Co. (NYSE: GE) Q2 earnings and sales declined, dragged down by finance and NBC units.

Continue reading Earnings highlights: Caterpillar, DuPont, GE, Halliburton, Texas Instruments ...

Earnings highlights: Caterpillar, DuPont, GE, Halliburton, Texas Instruments ... originally appeared on BloggingStocks on Sat, 25 Jul 2009 15:40:00 EST. Please see our terms for use of feeds.

Bright and early this morning, Roche Group (OTC: RHHB) announced first-half earnings and upped its annual earnings goal, thanks to impressive sales of Tamiflu. Roche's first-half profit (it only reports earnings twice) dropped 29% to $3.8 billion as the company was hit by costs related to its purchase of Genentech. That said, Roche upped its earnings guidance and forecast double-digit core earnings growth in both 2009 and 2010 -- the earlier forecast called for earnings to stay at 2008 levels.

Continue reading Roche sees solid first-half profits

Roche sees solid first-half profits originally appeared on BloggingStocks on Thu, 23 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Merriman upgraded Dendreon (NASDAQ: DNDN) to Buy from Neutral on expectations shares will react positively to the full IMPACT data release on April 28. The firm thinks Provenge could represent the first cancer immunotherapy approved in the U.S. and raised its valuation range on the stock to $33-$34 from $18-$19.
• Piper Jaffray upgraded Andersons (NASDAQ: ANDE) as it believes the valuation is attractive, investor expectations are low, and the company's fertilizer and rail segments could recovery in FY10. The firm has a $19 target on shares. Goldman upgraded the auto sector to Neutral from Cautious and added Ford (NYSE: F) to its Conviction Buy list. The analyst does not believe Ford will have to declare bankruptcy and sees the company benefiting from Chrysler share declines and GM's (NYSE: GM) reduced product offerings. Ford's price target is $6
• Banc of America/Merrill upgraded U.S. Airways (NYSE: LCC) to Buy from Underperform.
• Broadcom (NASDAQ: BRCM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
• Caterpillar (NYSE: CAT) was raised to Overweight from Neutral at JP Morgan.

Continue reading Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN

Analyst upgrades, downgrades and initiations: DNDN, ANDE, the auto sector, DGX, MTB, ADVS, ITG, MF and PCLN originally appeared on BloggingStocks on Wed, 22 Apr 2009 13:20:00 EST. Please see our terms for use of feeds.

More and more, there are signs that the capital markets are finding equilibrium. For example, Pfizer Inc. (NYSE: PFE) was able to raise $13.5 billion in debt financing this week. The structure was a five-part issue of notes.

Of course, Pfizer needs the cash to pull off its $64.2 billion acquisition of Wyeth (NYSE: WYE).

Continue reading Pfizer raises a healthy $13.5 billion

Pfizer raises a healthy $13.5 billion originally appeared on BloggingStocks on Tue, 17 Mar 2009 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Roche and Genentech (DNA) believed close to a deal

Roche and Genentech (DNA) believed close to a deal originally appeared on BloggingStocks on Tue, 10 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

Roche is cutting the amount of money it is offering for Genentech (NYSE: DNA) from $44 billion, or $86.50 a share, to $42 billion. The Genentech board had hoped for a higher price, but Roche may find itself hampered by the credit crisis.

According to Reuters, ""Roche had initially aimed to acquire the remaining shares through a negotiated settlement -- an offer rejected by Genentech -- and decided to appeal directly to shareholders after further talks failed to reach an agreement.". All the Genentech board can do now is recommend shareholders shun the deal.

Continue reading Roche cutting Genentech (DNA) bid, trouble for shareholders?

Roche cutting Genentech (DNA) bid, trouble for shareholders? originally appeared on BloggingStocks on Fri, 30 Jan 2009 04:05:00 EST. Please see our terms for use of feeds.

Genentech is among the leading biotech companies in the world. It is engaged in the discovery, development, manufacturing and commercialization of pharmaceutical products intended for treatment of previously untreatable illnesses.

In 1990, Roche acquired a 56% stake in the company. Since that time, the relationship between the two companies has been a model for similarly structured combinations.

Roche's offer of $89 per share for DNA was characterized by DNA as significantly undervaluing the company.

But this was hardly a "hit the road, Jack" response. DNA's board of directors has been encouraging the two sides to continue discussions, and recent comments suggest that the deal could come together soon.

Continue reading Don't sell your Genentech (DNA) stock just yet

Don't sell your Genentech (DNA) stock just yet originally appeared on BloggingStocks on Wed, 14 Jan 2009 11:05:00 EST. Please see our terms for use of feeds.

Mosaic (NYSE: MOS), a producer of crop nutrients, is recently down 81c to $24.59. MOS announced Q2 2009 results will be severely impacted by soft global demand for fertilizers. MOS December and January option implied volatility of 131 is above its 26-week average of 88 according to Track Data, suggesting larger price movements.

Palm (NASDAQ: PALM) is recently trading at $1.66. PALM negatively pre-announced Q2 results. Goldman Sachs reiterated its Sell rating on PALM. PALM overall option implied volatility of 105 is above its 26-week average of 90 according to Track Data, suggesting larger price movement.

Genentech (NYSE: DNA) is recently up $1.55 to $73.35. Roche announced on July 21 the offer to buy the balance of 44% of DNA it does not own for $89 cash. DNA December option implied volatility of 71 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Mosaic volatility at 130; shares down on soft phosphate conditions originally appeared on BloggingStocks on Tue, 02 Dec 2008 11:26:00 EST. Please see our terms for use of feeds.

Genentech (DNA) buoyed by Avastin study results originally appeared on BloggingStocks on Mon, 24 Nov 2008 13:11:00 EST. Please see our terms for use of feeds.

Genentech (NYSE: DNA) closed at $78.19 Tuesday. Roche announced on July 21 the offer to buy the balance of 44% of DNA it does not own for $89 cash. DNA November option implied volatility of 60 is above its 26-week average of 33 according to Track Data, suggesting larger price movement.

IBM (NYSE: IBM) closed at $95.65 Tuesday. IBM is scheduled to report Q3 EPS on October 16. Thomas Weisel lowered its 12-month price target form $143 to $120. IBM October option implied volatility is at 85, November is at 60; above it's above its 26-week average of 30 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Genentech volatility elevated; shares below Roche's $89 offer originally appeared on BloggingStocks on Wed, 08 Oct 2008 10:15:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Futures lower; AIG, TM, WMT down, COST, DNA could gain

Before the bell: Futures lower; AIG, TM, WMT down, COST, DNA could gain originally appeared on BloggingStocks on Thu, 07 Aug 2008 08:20:00 EST. Please see our terms for use of feeds.

Genentech (NYSE: DNA) is recently trading at $93, above its close on Friday of $81.82.

Roche Holding AG offered to buy the rest of DNA for $89 in cash. Roche, the world's largest maker of cancer drugs, acquired a majority in DNA in 1990 and currently owns 55.9% of DNA. Goldman Sachs says: "We expect the independent directors to negotiate with Roche for a higher price."

DNA August option implied volatility of 31 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Genentech volatility flat into Roche $43.7 billion offer originally appeared on BloggingStocks on Mon, 21 Jul 2008 09:48:00 EST. Please see our terms for use of feeds.

This morning's announcement that Roche wants to pay $43.7 billion for the 44.1% of Genentech (NASDAQ: DNA) it doesn't already own raises the question: "Why is Genentech worth so much to Roche?" The answer: it outperforms its competitors when it comes to innovation.

Roche is offering a 9% premium to Genentech's market value at Friday's close. Reuters reports that Roche wants Genentech's $2.6 billion (2008 estimated sales) Avastin, a colorectal cancer treatment, and Herceptin, a $1.3 billion (estimated 2008 sales) breast cancer drug, as well as Genentech's drug development portfolio.

Roche also expects to save $750 million to $850 million in pretax costs, but the long-term benefit would be for Genentech's innovative culture to take over the relatively dry drug development environment of Roche. If that doesn't happen, the deal could be unprofitable for both companies.

Continue reading What makes Genentech so great?

What makes Genentech so great? originally appeared on BloggingStocks on Mon, 21 Jul 2008 08:18:00 EST. Please see our terms for use of feeds.

Roche, the Swiss drug maker, has offered to buy the 45% of biotech giant Genentech (NYSE: DNA) that it does not already own. The offer totals $43.7 billion in cash. According to Reuters, Roche "would offer $89 per share to buy up the remaining stake, a 9 percent premium to the biotech company's closing share price on Friday."

The transaction would probably be a poor deal for Genentech holders and the board of the company should reject it and push for a higher price. When reporting quarterly earnings recently, the company raised its outlook to a range of $3.40 to $3.50 per share, from $3.35 to $3.40. Several brokerages made positive comments about Genentech and Citigroup began coverage of the stock as a "buy" with a $91 price target.

Although Genentech's shares are trading at a 52-week high at nearly $82, the firm is just recovering from rough earnings in last 2007. Early last year, before the rocky patch, the stock traded just below $90. The Genentech's No.1 drug, cancer treatment Avastin, is expected to do extremely well over the next several years.

The Roche offer does not take into account the fact that Wall St. expects Genentech to be a powerful growth company during the rest of the decade making the stock worth well over $90.

Douglas A. McIntyre is an editor at 247wallst.com.

A buyout of Genentech likely, but offer too low originally appeared on BloggingStocks on Mon, 21 Jul 2008 03:54:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• With regulators, politicians and rating firms biting at their heels, Countrywide Financial Corporation (NYSE: CFC) believed that it had no choice but to approach Bank of America Corporation (NYSE: BAC) last month about a merger, reported the Wall Street Journal. That fear led to BAC's $4B takeover of Countrywide, the Wall Street Journal reported.
• The Wall Street Journal reported that John Malone's Liberty Media Corporation (NASDAQ: LCAPA) moved to take control of IAC/InterActiveCorp (NASDAQ: IACI) from Barry Diller, nominating a series of directors for board members it is looking to replace.
• According to the Financial Times, European public health specialists have found "significant resistance" to Roche Holding Ltd's (OTC: RHHBY) widely purchased influenza antiviral medicine Tamiflu.

• Shares of Britain's third-largest drug maker, Shire Plc (NASDAQ: SHPGY) plummeted yesterday to a two-year low on concerns about demand for its attention deficit hyperactivity disorder treatment for children, Vyvanse, the Telegraph reported.

Newspaper wrap-up: Potential crackdowns forced Countrywide to seek out Bank of America originally appeared on BloggingStocks on Tue, 29 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Achilles heel of discount broker E*Trade Financial Corporation (NASDAQ: ETFC) may be its lesser known mortgage business, whose value is now at the center of debate regarded its sale price, reported the Wall Street Journal.
• According to a report prepared for European medicines authority, the Financial Times reported that Roche Holding Ltd (OTC: RHHBY) is responsible for impurities that caused an international recall of its HIV drug.
• The FT also reported that the United Kingdom's Virgin Group was confirmed as the preferred bidder for British bank Northern Rock, as the bank said it wanted to hold discussions with Virgin "on an accelerated basis."

• Sources close to the matter said that Ford Motor Company (NYSE: F) may put the brakes on overseas plans in many markets including India, South Africa and China on hold until it completes the sale of its Jaguar and Land Rover units, according to the Economic Times.
• China is expected to unveil more than 20 regulations on foreign mergers and acquisitions, or M&A, according to a senior Chinese legislator, Xinhua reported.

Newspaper wrap-up: Value of E*Trade's mortgage business up for debate originally appeared on BloggingStocks on Mon, 26 Nov 2007 08:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies upgraded shares of WellCare Health (NYSE: WCG) to Buy from Hold, as they believe the investigation could most likely result in fines as opposed to the loss of contracts with the company's government customers.
  
• Merriman raised its rating on Beacon Power (NASDAQ: BCON) to Buy from Neutral, as they believe the company is well-positioned for significant penetration of the growing frequency regulation markets.
  
• Piper upgraded shares of Tuesday Morning (NASDAQ: TUES) to Outperform from Market Perform as they believe the company's sales and margins trends are stabilizing.
  
• UBS upgraded West Pharmaceutical Services (NYSE: WST) to Buy from Neutral on valuation.
  
• Citigroup upgraded shares of Vectren (NYSE: VVC) to Buy from Hold, as they believe 2008 will be an inflection point with the share issuance and rate relief aiding earnings.

• Goldman added Roche (OTC: RHHBY) to its Conviction Buy List.
  
• Zumiez (NASDAQ: ZUMZ) was upgraded to Buy from Hold at McAdams, Wright.
  
• Thomas Weisel upgraded MasterCard (NYSE: MA) to Market Weight from Underweight.
  
• UBS upgraded Arcelor Mittal (NYSE: MT) to Buy from Hold.

Analyst upgrades: WCG, BCON, TUES, WST and VVC originally appeared on BloggingStocks on Mon, 05 Nov 2007 10:50:00 EST. Please see our terms for use of feeds.

• Baird upgraded shares of Apollo Group (NASDAQ: APOL) to Outperform from Neutral based on positive enrollment and revenue trends, margin improvement, and a strategic international announcement.
  
• CIBC upped its rating on Zoran Corporation (NASDAQ: ZRAN) to Sector Outperformer from Sector Performer following strong Q3 results and guidance.
  
• Jefferies upgraded shares of AmSurg Corp (NASDAQ: AMSG) to Buy from Hold as they believe the new CEO is preparing to drive earnings growth through acquisitions.
  
• ThinkEquity continues to expect Apple (NASDAQ: AAPL) to outpace the industry in growth. The firm upgraded shares to Buy from Accumulate.
  
• Barrington upgraded shares of Tribune Company (NYSE: TRB) to Market Perform from Underperform on valuation, as they believe the current price significantly discounts the risks of the going private transaction getting done.

• Citigroup upgraded Jarden Corporation (NYSE: JAH) and Teradyne (NYSE: TER) to Buy from Hold.
  
• Lehman upgraded SunPower Corporation (NASDAQ: SPWR) to Overweight from Equal Weight.
  
• HSBC upgraded ArcelorMittal (NYSE: MT) to Overweight from Underweight.
  
• WestLB raised Roche Holding (OTC: RHHBY) to Add from Hold.

Analyst upgrades: APOL, ZRAN, AMSG, AAPL and TRB originally appeared on BloggingStocks on Tue, 23 Oct 2007 11:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Negotiations continued last night on a new labor agreement between Chrysler and the UAW, but it is unclear if an agreement will be reached by today's 11am deadline, reported the Wall Street Journal (subscription required).
• MGM Mirage (NYSE: MGM) is today expected to announce plans to build a $5B resort in Atlantic City, NJ that will be completed in 2012, reported the Wall Street Journal.
• The CEO of Swiss pharmaceutical company Roche Holding (OTC: RHHBY), Franz Humer, said he has no intention of increasing his company's $75 per share bid for U.S. diagnostics company Ventana Medical Systems (NASDAQ: VMSI), and is "very confident" that the offer will succeed, reported the Financial Times (subscription required).

• Crain's Chicago Business reported that Aon Corporation (NYSE: AOC) has won back the insurance brokerage business of Sears Holdings Corporation (NASDAQ: SHLD).

• Harry Reid, the Senate Majority Leader, confirmed that there's little chance this year -- due to a crowded legislative calendar -- that there will be legislation to increase taxes on the private equity industry, reported TheDeal.com (subscription required).

Newspaper wrap-up: MGM to build a $5B resort in Atlantic City originally appeared on BloggingStocks on Wed, 10 Oct 2007 09:15:00 EST. Please see our terms for use of feeds.