Business Briefs - Tuesday

TECHNOLOGY

Google dips on paid-click worries

Shares of the Internet search king fell 2.1% to 450.78 after UBS cut its price target and profit forecasts, saying consensus estimates don't sufficiently reflect slowing volume growth in Google's GOOG paid-clicks ad business. UBS said the slowing paid-clicks volume growth stems from a lack of meaningful monetization improvements. It also said Google's margins will be pressured in the near to mid-term by expenses related to its purchase of online ad service DoubleClick.

Sohu up on sales of popular game

Chinese Internet portal operator climbed 6% to 46.21 after Goldman Sachs raised its Q1 game revenue by $4 mil, increasing total Q1 revenue estimate to $72.8 mil, citing the strength of its online video game "Tian Long Ba Bu." The brokerage also raised Q1 EPS estimate to 42 cents. Sohu.com SOHU's profit will be lifted by high-margin game revenue, the brokerage also said.

Yahoo supports social networking

The Internet giant is joining My-Space NWS and Google GOOG to form OpenSocial Foundation in endorsing technical specifications for building social applications across the Web. Yahoo YHOO and others are to provide common "plumbing" that lets social applications run on different Web sites without requiring duplicate work from either developers or the Web sites. The foundation will focus on issues such as technology, documentation and intellectual property.

THQ THQI, a video game publisher, rose 3.5% to 21.67 after Citi Investment Research upgraded the company to buy, contending it will likely see stronger demand as continued price cuts on major video game consoles fuel sales. VMware VMW, a maker of virtualization software, rose after Citi Investment Research said the company would beat views in '08, but Q1 would be a hurdle due to seasonality. The brokerage also said concerns of competitions were overdone. It rose 4.9% to 50.08. ENERGY

Canadian Solar shines on upgrade

The solar cell maker soared 21% to 21.10 after Lazard Capital Markets rated it a buy. Lazard said Canadian Solar's flexible sourcing model will enable it to compete better with rivals and also serve as a buffer if an imbalance between supply and demand arises. Canadian Solar's solar cell manufacturing capacity is growing, and the company already has 90% of the raw materials needed for a 2008 product shipment, Lazard said. On March 5, Canadian Solar raised its Q1 profit outlook to $12 mil-$12.5 mil, above views.

Rival Chinese solar firms also rose, with Solarfun Power Holdings SOLF surging nearly 21%, Suntech Power Holdings STP climbing 11%, Trina Solar TSL rising 5.1% and China Sunergy CSUN up 3.5%. MEDICAL

European subsidiary lifts Neogen

The maker of test kits for food and animal safety said Q3 EPS jumped 29% to 18 cents, meeting views. Revenue climbed 20% to $25.2 mil, just below views of $25.3 mil. Neogen NEOG cited strong results at subsidiary Neogen Europe, as well as strong sales of disposable test kits and recent acquisitions. The company has met or topped EPS forecasts for 4 straight quarters. Shares fell 2.5% to 25.72.

Europe expands heparin recalls

French, Danish and Italian authorities began recalling batches of heparin or its active ingredient that may be contaminated, becoming the latest nations to remove from shelves a blood thinner associated with at least 19 deaths. In the U.S., Baxter Int'l recalled nearly all its U.S.-sold heparin injections after some patients experienced extreme allergic reactions. Some contaminated heparin was linked to a manufacturer in China. Baxter rose 5 cents to 58.20.

Avant Immunotherapeutics AVAND surged 9.8% to 7.96 after Needham & Co. upgraded the biotech, citing a stronger development pipeline. FINANCE

Analyst: Bid for Bear isn't cheap

JPMorgan Chase's boosted bid of $10 a share for Bear Stearns BSC works out to the company paying about $65 a share after all costs and debt are absorbed, Punk Ziegel wrote in a note. The brokerage also said that JPMorgan's JPM purchase is not a bargain. Meanwhile, Bear Stearns was downgraded to sell by Sandler O'Neill. Bear fell 2.8% to 10.94. JPMorgan fell 1% to 46.06.

Fortress EPS meets, sales beat

The private equity and hedge fund manager posted Q4 EPS of 18 cents ex items, meeting views. Revenue fell 38% to $304 mil, beating forecasts. Fortress Investment Group FIG went public in Feb. '07, becoming the first hedge fund to be traded on the NYSE. Fortress announced a Q1 dividend of 22.5 cents a share, payable April 15. It rose 4.8% to 11.54.

TRANSPORTATION

US Airways pilot's gun goes off

A gun belonging to the pilot of an airliner discharged in the cockpit as the aircraft was on approach to land in North Carolina from Denver on Saturday. It was the first such incident since a federal program allowed pilots to carry guns. US Airways LCC said the incident did not endanger the aircraft or the 124 passengers, and no one was injured. The jet has been removed from service. US Airways edged up 2 cents to 9.12.

Ford to shed luxury brands Wed.

The U.S. automaker is expected to announce the sale of its U.K. brands Jaguar and Land Rover to India's Tata Motors TTM on Wed., published reports said. The estimated $2 bil deal has been delayed as the firms discussed their future relationship. Ford edged up 4 cents to 6.

METALS

Commercial Metals' profit falls

The steel producer said Q2 EPS fell 33% to 36 cents ex items, missing views by 22 cents. It blamed the shortfall on rising expenses. Revenue grew 18% to $2.25 bil, beating views. Commercial Metals CMC said it bought back 3.1% of its shares during Q2. It declared a quarterly dividend of 12 cents, payable on April 18. Shares rose 2.6% to 32.16.

REGULATION

Limits on sovereign funds rejected

The head of a 30-nation group of the richest economies said sovereign wealth funds shouldn't be restricted as long as they're motivated by profit, not politics. Angel Gurria of the Organization for Economic Cooperation and Development also said the group hasn't found evidence that the funds have acted to further political agendas. The funds include China's $200 bil investment fund, which drew attention in Dec. when it put $5 bil into investment bank Morgan Stanley MS.

Court limits arbitration reviews

The Supreme Court ruled that federal courts have only a very limited role in reviewing arbitration awards. The court, in a 6-3 decision, rejected an appeal by a business owner who lost an arbitration suit involving toy maker Mattel MAT. The justices asserted that the Federal Arbitration Act "confines its expedited judicial review" to narrow circumstances. Mattel fell 1.4%.