Among the companies with shares expected to actively trade in
Monday's session are Mattel Inc. (MAT), Endocyte Inc. (ECYT) and
Citigroup Inc. (C)
Mattel's first-quarter profit fell 53% on expenses tied to the
toy maker's purchase of HIT Entertainment and as an increase in
demand overseas couldn't offset a decline in the mature North
American market. Shares slid 6.2% to $32.03 in recent premarket
trading as the top line results missed Wall Street's expectations
for the second consecutive quarter. Shares of rival toy maker
Hasbro Inc. (HAS), which is due to report results next week,
dropped 5.3% to $34.25.
Merck & Co. (MRK) has agreed to pay $120 million upfront to
Endocyte, with additional payouts of up to $880 million, to develop
and market the experimental cancer drug vintafolide as the drug
maker looks to bring more drugs to market. Endocyte's shares more
than doubled premarket, rising 111% to $8.
Citigroup's first-profit remained virtually flat from a year
earlier at $2.9 billion, through revenue particularly from equity
and debt capital markets operations improved from the
fourth-quarter. Shares of Citigroup rose 2.1% to $34.10
premarket.
Baxter International Inc. (BAX) and Halozyme Therapeutics Inc.
(HALO) received a Food and Drug Administration request for
additional information related to the long-term use of their
investigational product called HyQ. Shares of Halozyme tumbled 20%
to $9 premarket, while Baxter's shares traded down 2.6% to
$56.51.
Mark Cuban has taken a 7.4% stake in video ringtone maker Vringo
Inc. (VRNG), a disclosure that comes a day after the billionaire
made an investment in another applications maker. Shares jumped 22%
to $3.71 premarket
The California state appeals court overturned a ruling against
Boeing Co. (BA) that had awarded $603 million to ICO Global
Communications Ltd., now known as Pendrell Corp. (PCO), in a 2008
lawsuit over allegations Boeing breached a contract to build a
world-wide satellite-communications network. Pendrell shares fell
38% to $1.35 premarket.
Bank of America/Merrill Lynch upgraded its stock-investment
rating on Caterpillar Inc. (CAT) to buy from neutral, saying recent
pullback in stock price "presents an attractive entry point into a
stock with a strong growth profile and high [free cash flow] yield
at a discounted valuation." The firm said Caterpillar's low
multiple "reflects a lot of macro-economic uncertainty," but the
firm sees ongoing strength in North America, "stabilizing Europe
& Asia, and better-than-expected progress in execution
turnaround." Caterpillar's shares traded up 1.7% to $107.65 in
recent premarket trading.
Dreams Inc. (DRJ) said it has signed a definitive merger
agreement with Fanatics Inc., an online seller of licensed sports
products. Under the agreement Fanatics will acquire all the
outstanding shares of Dreams, a technology-driven multi-channel
retailer, for $3.45 per share in cash. The offer represents a 32%
premium over Dreams' Friday closing price. Shares of Dreams jumped
45% to $3.79 premarket.
Watchlist
Alliance Data Systems Corp. (ADS) said it saw reduced
charge-offs and a lower delinquency rate for the private-label
cards it oversees in March.
Booz Allen & Hamilton Inc.'s (BAH) San Antonio office was
removed from the U.S. government's excluded parties list system and
is now eligible to compete for new federal contracts.
Hallwood Group Inc. (HWG) said its independent public accounting
firm included a going concern opinion in its Form 10-K filing for
2011, citing uncertainty related to ongoing litigation.
Standard & Poor's Ratings Services lowered its credit rating
on Kratos Defense & Security Solutions Inc. (KTOS) one notch
further into junk territory, citing the defense supplier's
lower-than-expected 2011 earnings.
Standard and Poor's Ratings Services boosted its ratings on PNM
Resources Inc. (PNM) to investment grade, pointing to the utility
operator's focus on its core electric operations.
Procter & Gamble Co. (PG) said Friday it will raise its
quarterly dividend 7%, as the world's largest consumer-goods
company looks to boost shareholder return.
-Edited by Corrie Driebusch and Nathalie Tadena; write to
corrie.driebusch@dowjones.com