Monday, November 10, 2008

Pre Market Trading Gap News

Gapping Down

DSCO -20.9%, MBI -12.3%

Gapping Up

In reaction to strong earnings/guidance: AIG +26.1%, FRPT +18.2%, BRCD +6.5%… M&A news: CYCL +102.6% (AT&T to acquire Centennial Communications for $8.50 per share)… Select stem cell related stocks trading higher following WSJ story saying Obama will allow federal funding of stem-cell research: ASTM +29.6%, STEM +28.6%, GERN +20.1%, OSIR +10.7%… Select drybulk shippers showing strength : DRYS +10.9%, TBSI +10.2%, EXM +9.2%… Select metals/mining names showing strength with higher spot prices and weaker dollar: MT +18.0%, HL +16.7%, AAUK +12.8%, RTP +12.1%, BHP +12.0%, SLW +10.9%, FCX +10.7% (announces molybdenum production curtailment and plans to defer restart of climax molybdenum mine), BBL +10.5%, AU +7.3%, GOLD +7.1%, AUY +5.7%, GFI +4.2%, GLD +3.1%, LMC +3.0%… Select iron/steel stocks showing strength: STLD +15.3%, AKS +6.1%, X +6.0%, NUE +4.4%… Select oil/gas names showing strength with crude prices up 7% and weaker dollar: TOT +4.5%, RDS.A +3.0%, CVX +2.2%, BP +1.8%, XOM +1.7%… Other news: VISN +9.3% (provides information to investors; cash on hand and cash to be generated from its operations will be sufficient to not only support its business activities but also meet its cash requirements in the foreseeable future), PBCT +7.2% (will replace UIS is S&P 500), ASML +6.3% and SAP +5.1% (still checking for anything specific), MCD +3.8% (reports October global same store sales +8.2%), AZN +2.8% (CRESTOR demonstrates cardiovascular risk reduction in a large statin outcomes study)… Analyst comments: TEF +2.8% (upgraded to Outperform at JPMorgan), WFC +1.0% (upgraded to Outperform at Credit Suisse).

AT&T (T) and Centennial Communications announced after the close that AT&T plans to acquire Centennial for $944 mln in cash. Under terms of the agreement, Centennial stockholders will receive $8.50 per share for a total equity price of $944 mln. Including net debt, the total enterprise value is approximately $2.8 billion. AT&T expects the proposed transaction to deliver significant value to its stockholders. The acquisition offers opportunities for synergies in areas including corporate overhead, advertising, customer care and network operations. In the first year after the transaction closes, AT&T expects minimal dilution to EPS and cash flow, driven by upfront integration costs.

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