Friday, July 15, 2011

Focus Stocks: YRCW, CLX, HK, CHK, SGEN

Shares of YRC Worldwide Inc. (NASDAQ: YRCW) jumped as much as 10% Friday, a day after the struggling trucking company isclosed a rosy financial outlook for fiscal 2011. The company expects its fiscal 2011 revenue to rise by a whopping 14% to $4.93 billion compared with $4.33 billion in fiscal 2010. Adjusted earnings before interest, taxes, depreciation, and other charges will be around $209.8 million, a considerable increase of 184% from $73.9 million in fiscal 2010.

Clorox Corporation (NYSE: CLX) surged more than 6% after activist investor Carl Icahn disclosed making a $76.50 per share offer for household products maker.

Petrohawk Energy Corporation (NYSE: HK) soared more than 62% on Friay after it agreed to be acquire by BHP Billiton Ltd. (NYSE: BHP) in a deal worth more than US$15 billion. The definitive agreement will see BHP offer Petrohawk shareholders US$38.75 a share, an all-cash deal that represents an equity value of about $12.1 billion and, with debt, an enterprise value of $15.1 billion.

Chesapeake Energy Corp. (NYSE: CHK) rallied more than 6% after Ticonderoga Securities LLC said that the natural-gas driller would be worth $58 a share should it be taken over based on the valuation of the Petrohawk acquisition.

Seattle Genetics Inc. (NASDAQ: SGEN) plunged more than 10% on concerns that the U.S. launch of its new oncology drug Adcentris might be delayed because of a regulatory snag. On Thursday, an advisory panel of the U.S. Food and Drug Administration voted to recommend conditional approval of the drug for the treatment of two types of lymphoma under the agency's acclerated approval program. The drug's final approval would be dependent on the satisfactory completion of certain clinical studies.

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