By Rita Nazareth
Feb. 27 (Bloomberg) -- Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 8:13 a.m. in New York.
Financial shares plunged after the U.S. government said it will raise its stake in Citigroup Inc. (C US) in the third attempt to rescue what was once the world’s biggest financial institution. Citigroup said that, as part of the agreement, the bank would suspend dividends on its preferred shares and its common stock.
Citigroup fell 45 percent to $1.36. Bank of America Corp. (BAC US) lost 14 percent to $4.56. JPMorgan Chase & Co. (JPM US) dropped 5.9 percent to $21.70. Lloyds Banking Group Plc (LYG US) declined 34 percent to $4.01. Barclays Plc (BCS US) slipped 13 percent to $5.30.
Advanced Micro Devices Inc. (AMD US) rose 3.3 percent to $2.16. Chief Executive Officer Dirk Meyer said generating cash flow is the key to convincing investors his company can be a viable competitor to Intel Corp. (INTC US).
Deckers Outdoor Corp. (DECK US): The maker of Ugg boots and Teva sandals said per-share earnings will decline this year from $7.27 a share in 2008. The average analyst estimate was for an increase to $7.99, according to a Bloomberg survey.
Dollar Tree Inc. (DLTR US): Morgan Stanley initiated coverage of the largest U.S. retailer of items costing $1 or less with an “overweight” rating. Morgan Stanley said Dollar Tree’s sales will outpace the competition in the recession.
Federated Investors Inc. (FII US) slid 5.6 percent to $19.02. The third-largest U.S. manager of money funds was cut to “sell” at Goldman Sachs Group Inc. and added to the brokerage’s “conviction sell” list. Goldman Sachs said that potential regulatory changes create “headwinds” to the stock.
Kohl’s Corp. (KSS US): The fourth-largest U.S. department- store chain forecast earnings of $2.30 a share at most this year, or 3.8 percent less than the average analyst estimate.
Magellan Health Services Inc. (MGLN US): The provider of medical services including treatment for mental illnesses reported fourth-quarter earnings excluding some items of 61 cents a share, beating the average 55-cent analyst estimate.
MetLife Inc. (MET US) fell 8.3 percent to $21.99. The biggest U.S. life insurer and Hartford Financial Services Group Inc. (HIG US) were downgraded by Standard & Poor’s, which cut 10 companies in the industry on concern that investment losses will rise. Hartford fell 10 percent to $6.44.
Packaging Corp. of America (PKG US): The fifth-largest U.S. maker of corrugated boxes cut its quarterly dividend in half to preserve cash as an economic slump reduces demand.
Petrohawk Energy Corp. (HK US) fell 6.7 percent to $17.35. The Houston-based oil and gas company plans to sell 22 million shares, which may dilute the value of existing equities.
Somaxon Pharmaceuticals Inc. (SOMX US): U.S. Food and Drug Administration rejected the company’s application to sell its only product in development, the Silenor pill for insomnia.
Theravance Inc. (THRX US): The company failed to win U.S. approval for a new antibiotic for hard-to-treat skin infections such as methicillin-resistant Staphylococcus aureus, or MRSA, which kills almost 19,000 Americans a year.
Wyeth (WYE US): The U.S. drugmaker being bought by Pfizer Inc. (PFE US) said a strong U.S. dollar may hurt revenue this year and the value of its pension assets had fallen 21 percent at the end of 2008 because of a global financial market slump.
To contact the reporter on this story: Rita Nazareth in New York at nazareth@bloomberg.net.
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