Zynga FACES Additional Suits and 2 Stocks Falling to 52-Week Lows
Health Net Inc. (NYSE:HNT) reports a Q2 revenue totaling $2.7 billion, consensus $2.80 billion. The Q2 EPS includes a $119.4 million net gain from the sale of discontinued operations, which represents the company’s Medicare PDP business which was sold to a CVS Caremark Corporation affiliate on April 1, 2012. This is $6.5 million pretax loss in relation to the company’s divested operations and services; and $10.8 million in expenses concerning the company’s general and administrative cost lowering efforts. The shares closed at $18.36, down $4.34 or 19.12% on the day. They have traded in a 52-week range of $20.51 to $41.22.
Ixys Corp. (NASDAQ:IXYS) reports a Q1 EPS of 19c, consensus 19c. The shares closed at $9.02, down $0.3 or 3.22% on the day. They have traded in a 52-week range of $9.02 to $14.51.
Molycorp Inc (NYSE:MCP) sinks after higher production costs and other expenses pulled down the company’s bottom line. Along with higher production costs triggered by the need to use more chemical reagents than before, Molycorp paid other transaction costs connected to its acquisition of Molycorp Canada. Molycorp’s cost of sales surged to $103.57 million during Q2, up from $40.35 million during the same period in 2011. Also, the mining company stated that prices for its minerals and its sales volumes both dropped during the quarter. This caused Molycorp’s earnings per share excluding certain items to be 3c, versus analysts’ consensus estimate of 8c. The company’s revenue was also below what was expected. In mid-morning trading, Molycorp fell $4.10, or 25.51 percent, to $11.97. Other rare earth miners also saw a decline, with Rare Element (AMEX:REE) falling 5.06 percent to $3.75 and Avalon Rare Metals (AMEX:AVL) falling 1.32 perncent to $1.49. The shares closed at $11.49, down $4.58 or 28.5% on the day. They have traded in a 52-week range of $14.35 to $63.60.
Zynga Inc. (NASDAQ:ZNGA): Electronic Arts (NASDAQ:EA) announced it has filed a lawsuit on behalf of its Maxis Label against Zynga for infringement upon EA’s copyrights to its Facebook (NASDAQ:FB) game, The Sims Social. In the complaint, filed in the United States District Court for the Northern District of California on August 3, EA states that in the new Facebook game by Zynga, The Ville, Zynga has willfully and intentionally “copied and misappropriated the original and distinctive expressive elements of The Sims Social in a violation of U.S. copyright laws.” The Sims Social, which was launched in August 2011, introduced the distinctive universe of EA’s world-renowned franchise, The Sims, to the social gaming audience on Facebook. An instant hit, The Sims Social quickly gained tens of millions of users, and it keeps a current user base of several million active Facebook players. The shares closed at $2.72, up $0.02 or 0.74% on the day. They have traded in a 52-week range of $2.68 to $15.91.
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