US stocks retreated on Thursday as mixed economic data and disappointing outlook from FedEx dampened investor sentiment.
Augusta Resource Corporation (NYSE: AZC) soared more than 15% after the company announced that its wholly-owned subsidiary, Rosemont Copper Company, entered into an Earn-In Agreement with a Korean consortium, the members of which are Korea Resources Corporation and LG International Corp., whereby KORES/LGI shall acquire a 20% joint venture interest in the Rosemont copper molybdenum project in Pima County, Arizona in consideration for funding $176 million of the project expenses. The company said that $70 million will be advanced to fund development pre-permitting and $106 million will be advanced to fund construction. As funds for the Investment are advanced, KORES/LGI will earn their proportionate interest in the joint venture.
Shares of Covidien plc (NYSE: COV) jumped more than 4% on Thursday after the company said that it expects net sales in the 2011 fiscal year to increase 6% to 9% from 2010. Net sales are expected to increase 10% to 13% versus 2010 in the Medical Devices segment and be flat to up 3% in Medical Supplies. The company expects sales in Pharmaceuticals to be down 5% to even with 2010 net sales. All sales growth rates assume current foreign exchange rates. Excluding the impact of one-time items, operating margin is expected to be in the 21% to 22% range. Covidien anticipates the effective tax rate will be in the 20% to 21% range for fiscal 2011, excluding the impact of one-time items. Free cash flow is expected to be in excess of $1.6 billion in 2011.
Eastman Chemical Company (NYSE: EMN) rallied more than 2% after President and CEO Jim Rogers said that third-quarter 2010 earnings per share are expected to be between $2.20 and $2.30, above previous expectations. He said that the continued strong performance is due to selling prices remaining solid reflecting high industry capacity utilization rates, and a seasonal decline in sales volume being less than expected. Included in the expected third-quarter results is approximately $0.20 per share from the partial settlement of an insurance claim related to the previously announced outage at the company's Longview, Texas, manufacturing facility. In addition, Rogers said that full-year earnings per share are expected to approach $7, also above previous expectations.
China MediaExpress Holdings, Inc. (NASDAQ: CCME) jumped more than 10% after the company announced that its Board of Directors has approved a share repurchase program for up to $30 million of its common stock. The share repurchase authorization is effective immediately and remains in effect for one year.
Shares of Digital Angel Corporation (NASDAQ: DIGA) surged more than 28% after PositiveID Corporation (NASDAQ: PSID) announced that it has presented an offer to the company's board of directors to purchase all the outstanding shares of Digital Angel common stock for $0.60 per share, representing a 60 percent premium to Digital Angel's average closing price for the 20 trading days ending on September 14th.
Disclosure: Author doesn't own any of the stocks discussed here.
