Bank of America Stock Dips 1%, GE Shares Up 1%, Boston Scientific Has Catalyst
Wall Street started the new year with pent-up positivity, but hasn’t kept the celebration momentum. As the reality of Europe comes back into view, here are the hottest stories affecting top companies to end the week.
Bank of America Corporation (NYSE:BAC): BOA trading lower 1% in trading action. Reuters is reporting that Lehman has asked a judge to stop Zell’s Archstone deal. Lehman Brothers Holdings (LEHMQ), owns 47 percent Archstone, a real estate company. In a Manhattan U.S. Bankruptcy Court, Lehman was trying to purchase the reming stake in the company and avoid a bidding war with Sam Zell’s Equity Residential (NYSE:EQR), according to Reuters. For a 26.5 percent share of the company Zell will pay $1.325 billion. Barclays (NYSE:BCS) and Bank of America have a 53 percent stake in Archstone, and both are trying to sell half of their share.
General Electric (NYSE:GE): General Electric-Aviation awarded a $937.88M firm-fixed-price contract. The award provides services and supplies for Corpus Christi Army Depot overhaul and repair of the entire T-700 family of engines.
Boston Scientific Corporation’s (NYSE:BSX): New milestones for Alair system. Boston Scientific announced the Centers for Medicare and Medicaid Services (NYSE:CMS), has confirmed substantial clinical improvement using the Alair Bronchial Thermoplasty System to manage severe asthma.
When the procedure is done in an outpatient hospital after January 1st, Medicare will reimburse for the Alair catheter with a separate “pass-through” payment. This pass-through allows payment for the Alair catheter in addition to payment for the bronchial thermoplasty procedure until Medicare establishes better utilization and payment data. Combining the Medicare payments provides private insurers a reimbursement standard for bronchial thermoplasty therapy.
RF Micro Devices (NASDAQ:RFMD): RF Micro Devices pre-announced lower third quarter revenues of $225 million, down from both consensus estimates and previous guidance of $250 million. The company blamed lower sales of second generation components for entry-level handsets to China based customers and weak sales from its multi-market products group. RF said, demand for second generation was well below customer expectations at the end of the quarter. On the up side, third and fourth generation smart phone component sales popped about 16 percent for the quarter.
“Despite this challenging macro environment, RFMD fully expects to grow in fiscal 2013, supported by market share gains, new product launches, and expanding relationships with both channel partners and customers,” added RF CEO, Bob Bruggeworth. Kaufman Bros. lowered RF Micro Devices target lowered from $9 to $6. The third quarter pre-announcement of weaker revenue prompted the downgrade. but Kaufman Bros. feels margins are at or near bottom and maintains a Buy rating.
Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ): Jazz projects fiscal year 2012 total sales at $460-$485 million and Xyrem product sales $330-$340 million. Muzho raised target from $52 to $62.
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