Abet Chichi2

[chichi2]

US Hot Stks: EBay, Intel, CSX Active In Late Trading

. Ê U.S. stocks moved lower Tuesday. The Dow Jones Industrial Average fell 1.7% to 7920, while the S&P 500 slid 2% to 842 and the Nasdaq Composite dropped 1.7% to 1626. Among the companies whose shares are actively trading in the after-hours session are EBay Inc. (EBAY), Intel Corp. (INTC) and CSX Corp. (CSX).

Ê EBay said it plans to separate Internet telephone unit Skype from the company, beginning with an initial public offering to be completed in the first half of 2010. The company said it believes operating Skype as a stand-alone, publicly traded company is the best way to maximize its potential. There has been speculation in recent days that Skype's two Scandinavian founders are hoping to team up with private equity firms and use some of their money to buy Skype back. Ebay shares rose 4.5% to $15.03 in after-hours trading.

Ê Intel reported better-than-expected first-quarter earnings and revenue. Perhaps more importantly, it offered some optimism. "We believe PC sales bottomed" in the first quarter "and that the industry is returning to normal seasonal patterns," Chief Executive Paul Otellini said. Shares, though, fell 4.6% to $15.27 after-hours, likely on the company's outlook for second-quarter gross margins - seen now in the mid-40s; analysts, on average, expected 44.8 - and second-quarter revenue, which the company expects to be flat sequentially.

Ê CSX's first-quarter earnings dropped 30% as weakness in the industrial production, housing and consumer spending sectors lowered volumes. But shares of the freight company climbed 7.4% to $30.50 in late trading after per-share earnings topped Wall Street estimates.

Ê Shares of Energy Transfer Partners LP (ETP) slid 2.7% to $38.87 in late trading after the energy limited partnership said it plans to offer 7.5 million common units. It intends to use the proceeds to fund capital expenditures and capital contributions to joint ventures.

Regular Session Movers
Ê Dendreon Corp. (DNDN, $16.99, +$9.69, +132.74%) reported that its controversial prostate-cancer treatment Provenge was successful in prolonging patient survival, a long-awaited critical step seen needed to secure regulatory approval for the drug. Investors have waited two years for this news. Dendreon's success boosted shares of other companies with cancer vaccines. Such drugs prompt the immune system to attack the cancer, but until now they have only produced failures. Gainers include IDM Pharma Inc. (IDMI, $2.01, +$0.31, +18.24%), Micromet Inc. (MITI, $3.18, +$0.30, +10.42%), Antigenics Inc. (AGEN, $0.72, +$0.25, +53.21%), and even Cell Genesys Inc. (CEGE, $0.44, +$0.09, +25.71%), which has actually dropped its cancer-vaccine program.

Ê Goldman Sachs Group Inc.'s (GS, $115.11, -$15.04, -11.56%) fiscal first-quarter net income rose 20% as the banking giant recovered from its first quarterly loss since going public a decade ago in the prior quarter. The company said it would sell $5 billion of common shares to raise money to repay government capital, in a move that will boost shares outstanding by about 8% while diluting shareholders. In the offering, 40.7 million shares will be sold at $123 each, a 5.5% discount to Monday's closing price. It also prorated its quarterly dividend to 35 cents a share.

Ê Talbots Inc. (TLB, $3.43, -$1.14, -24.95%) posted a wider fiscal fourth-quarter loss as it took $73.9 million in charges. Revenue and margins also dropped amid the deteriorating consumer-spending environment. Talbots issued a fiscal first-quarter view below analysts' estimates. The struggling women's apparel retailer, which twice delayed its results while it finished reviewing its books, also said it expects the current weakness in consumer traffic and spending to continue through fiscal 2009.

Ê MGM Mirage (MGM, $6.60, +$0.35, +5.60%) amended its senior credit facility, which will give MGM the ability to pay the full current construction costs on its Las Vegas CityCenter project. This amendment allows MGM to fund Dubai World's $35 million share of the project, should Dubai World not do so.
Ê Basic Energy Services Inc. (BAS, $9.91, +$1.37, +16.04%) cut its first-quarter revenue forecast on weaker-than-expected performance in March. The provider of well-site services now expects revenue to fall 37% from $246 million in the fourth quarter. Still, shares rose as CapitalOne Southcoast upgraded its investment rating on the stock to neutral from reduce, saying the projection indicates a bottom.

Ê E*Trade (ETFC, $1.87, +$0.13, +7.47%) shares surged for second straight session with analysts unable to pin move to any one factor. E*Trade's jump was in line with some distressed financials following Goldman Sachs' (GS, $118.43, -$11.72, -9.00%) better-than-expected first-quarter results. One hedge fund executive says E*Trade is big beneficiary of investors covering short positions. Meanwhile, JMP initiated coverage of the company with market perform rating.

Ê Moody's Investors Service lowered its credit ratings on units of bond insurer Ambac Financial Group Inc. (ABK, $1.02, -$0.12, -10.53%), including principal operating subsidiary Assurance Corp., which it placed into junk territory, amid higher loss estimates and its view of weakened risk-adjusted capitalization.

Ê American Public Education Inc. (APEI, $36.61, -$2.74, -6.96%) shares slid as the education provider's stock came more in line with its competitors. "There is a valuation discrepancy between American Public and its peers," Barrington Research analyst Alexander Paris Jr. told Dow Jones Newswires. "American Public, based on 2009 estimates, is the most expensive stock in the group."

Ê JPMorgan raised Aruba Networks Inc. (ARUN, $4.13, +$0.40, +10.72%) to neutral, saying the recent introduction of next-generation products re-accelerate wireless local area network, or WLAN, market growth to 20% in calendar year 2010 and 30% in 2011 from 8% decline in 2009.

Ê JMP Securities initiated coverage of the Blackstone Group LP (BX, $8.37, +$0.57, +7.31%) shares with an investment rating of market outperform, saying the stock's current valuation is a compelling entry point. "We believe BX is the single best levered play to a cyclical credit market recovery in our coverage," the firm said.

Ê Commerce Bancshares (CBSH, $33.30, -$5.95, -15.16%) reported worse-than-expected first-quarter results. Net income tumbled 52% to $30.8 million amid boost to loan-loss provision. The company's 90-day delinquencies doubled, charge-offs nearly tripled and return on equity more than halves to 7.82%. Still, company Chief Executive David W. Kemper said its balance sheet has remained strong, liquidity is improving and key business units are operating "within plan."

careful DSCO is not marginable and could drop to $1 if not approved, ie half price; on the other side i think it could double to quadriple. wild jass guess by chi2
Ê Shares of Discovery Laboratories Inc. (DSCO, $2.15, +$0.16, +8.04%) gained as the biotechnology company announced it has made progress on its capillary aerosolization technology, a system that delivers a mist of drugs deep into the lungs, where they are most effective. Wedbush Morgan also tied the gains to hopes that the FDA will soon give approval for Discovery's lead product, Surfaxin, a treatment to prevent respiratory distress syndrome in premature infants. The FDA, which already has withheld approval for this treatment two times, is expected to release its decision Friday.