Hot Stocks: Lam Research, Rio Tinto, Alere, Prudential Financial and ArcelorMittal
Lam
Research Corporation (NASDAQ:LRCX) added 2.40% to US$41.42
on over 4.99 million shares, compared to its average volume of 2.58 million
shares. Lam Research Corp. and Novellus Systems, Inc. announced that matters
relating to the December 14, 2011 merger agreement were approved at the
respective meetings of the Lam Research stockholders and the Novellus
shareholders held on May 10, 2012. Lam Research stockholders approved the
issuance of shares required to complete the acquisition of Novellus. Novellus
shareholders approved the merger and merger agreement, and also approved, on an
advisory basis, the merger-related executive compensation for Novellus' named
executive officers. At the special meeting of Lam Research stockholders,
approximately 99.9% of the votes were cast in favor of the proposal to issue
shares of Lam Research common stock to Novellus shareholders in connection with
the merger.
Rio
Tinto plc (ADR) (NYSE:RIO) fell 1.80% to US$50.05 on over 4.95 million shares, compared to its
average volume of 3.52 million shares. Rio Tinto defended plans to continue to
spend heavily on its iron ore operations in Australia but cautioned the
country's attraction as an investment destination has deteriorated and
operations such as coal are being hit with sharply higher costs. Cost inflation
coupled with global economic uncertainty has heightened the mining company's
caution when it comes to stepping up investment and capital returns, and as a
result, some growth opportunities may not be developed, Rio's board told
shareholders at an annual meeting in Brisbane last Thursday. The bulk of Rio's
investment in the coming few years is aimed at the expansion of its Pilbara
iron ore operations in Western Australia, reinforcing the company's position as
Australia's largest supplier of the steelmaking ingredient and the world's
number two after Vale SA. Stronger prices for iron ore and other products
helped lift cash flow last year to a record USUS$27.4 billion, and Rio has said
it will spend at least US$16 billion on its operations in 2012.
Alere Inc. (NYSE:ALR) plunged 14.71% to US$19.02
05 on over 5.27 million shares, compared to its average volume of 941,000 shares
after revealing talks with the FDA related to concerns about quality testing
and performance characteristics on Alere Triage
products. The maker of medical diagnostics equipment expects a resolution will
involve a recall of unexpired lots of Triage products that don’t satisfy a
quality control release method. Canaccord Genuity maintained buy rating on the stock and the price
target from US$30 to US$35. The company received a subpoena from the Department
of Health and Human Services related to quality testing and performance
characteristics on Alere Triage products. Alere Inc. is engaged in developing capabilities in
near-patient diagnosis, monitoring and health management. The company’s products
and services, as well as its new product development efforts, focuses on
cardiology, infectious disease, toxicology, diabetes, oncology and women’s
health.
Prudential
Financial Inc. (NYSE:PRU) fell 0.25% to US$51.51 on
over 4.77 million shares, compared to its average volume of 3.79 million shares.
Morgan Stanley analyst Nigel Dally and Evercore
Partners' Mark Finkelstein both raised their recommendations to overweight from
equal weight, though Finkelstein reduced his price target to US$65 from US$71,
according to Bloomberg data. Dally's price target is US$66. His previous target
could not be determined. Prudential shares, which closed at US$51.06 last Wednesday
and have fallen nearly 17% over the last five days, were up more than 2% in
pre-market trading. Finkelstein argues Prudential's "now lower valuation,
more favorable long term growth characteristics, and the strength and stability
of its international business" warrant an upgrade, despite the prospect of
Prudential being subjected to stricter regulatory oversight if regulators decide
its failure could pose a threat to the financial system. Prudential Financial
Inc., the second- largest U.S. life insurer, sued Morgan Stanley over the
purchase of US$1 billion in residential mortgage-backed securities.
ArcelorMittal (ADR) (NYSE:MT) fell 2.20% to US$16.01 on
over 7.06 million shares, compared to its average volume of 7.53 million
shares. The company plans to restart a second production unit in the coming
weeks to boost its output. The company said it seeks to restart a second plate
mill to increase flexibility and avoid bottlenecks at the other mill as the
procedure may increase the production capacity of the Galati unit to 1 million
tons per year, according to the statement. Earlier this week, the company
reported a first-quarter 2012 net income of US$11 million or US$0.01 per share
from last year’s US$1.07 billion or US$0.69 per share. Quarterly sales were US$22.70
billion, compared with US$22.18 billion in the prior-year period. Analysts
expected earnings per share of US$0.22 for the quarter. Looking forward, the
company expects second quarter steel shipments to be similar to 2012 first
quarter levels while the Mining segment is expected to benefit from seasonally
higher iron ore shipments. All segments are expected to show improved underlying
profitability in the second quarter as compared with the 2012 first quarter.
Read Full Insider Report For:
LRCX |
RIO |
ALR |
PRU |
MT |
