15
Jun

Wall Street dropped more than 200 points midday today, pushing down several key stocks making today’s headlines.

Today’s Stock Alerts include: United Technologies Corp. (NYSE: UTX), Hasbro Inc. (NYSE: HAS), Scientific Games Corp. (Nasdaq: SGMS), Genworth Financial Inc. (NYSE: GNW), CEMEX, S.A.B. de C.V. (NYSE: CX) and Illinois Tool Works Inc. (NYSE: ITW).

United Technologies Corp. (NYSE: UTX) Stock Alert – UTX Unit Secures Engine Deals

United Technologies Corp. (NYSE: UTX) shares fell 1.83% to $54.82 midday today. United Technologies Corp. (UTC) is a diversified provider of high technology products and services to the building systems and aerospace industries. Its Pratt & Whitney unit recently secured an engine deal with Korean Air, a contract valued at about $300 million.

According to the report, the Asian passenger airline, the world’s largest commercial air-cargo carrier, will use its engines to power six new Airbus A330 aircraft. In addition, it will use its PW4170 Advantage70 engines to power six new Airbus A330 aircraft, a medium- to long-range twin-engine plane. The deal will also include two spare engines, bringing the total number of engine in the deal to 14.

Separately, Pratt and Whitney won $233 million order for V2500 Engines from Air China. According to the press release, Air China has selected International Aero Engines (IAE) V2500 engines to power a new fleet of Airbus A320-family aircraft with deliveries starting in April 2010. The UTC unit is a major participant of IAE, a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney, Rolls-Royce, the Japanese Aero Engines Corp. and MTU Aero Engines.

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines.

Aside from Pratt & Whitney, UTC’s other segments include: Otis, Carrier, UTC Fire & Security (UTC F&S), Hamilton Sundstrand and Sikorsky.

Otis includes elevators, escalators, moving walkways and services. Carrier includes heating, ventilating, air conditioning and refrigeration systems and equipment, and food service equipment. UTC F&S offers electronic security, fire detection and suppression, monitoring and response systems and services, and security personnel services. Hamilton Sundstrand includes aerospace products and aftermarket services. Sikorsky offers military and commercial helicopters, aftermarket helicopter, and aircraft parts and services. In October 2008, the company acquired Architectural Energy Corp.

In today’s daily chart, UTX’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.

Hasbro Inc. (NYSE: HAS) Stock Alert – HAS, WMS announce Extended and Expanded Licensing Relationship

Hasbro Inc. (NYSE: HAS) shares fell 1.99% to $24.59 at noon today. Hasbro is engaged in providing children’s and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys.

The Pawtucket, R.I.-headquartered company announced it has extended a long-term licensing deal with WMS Gaming Inc. through 2016, as well as expanded the scope of their licensing relationship.

Financial terms were not disclosed.

As per agreement, WMS Gaming, a wholly owned subsidiary of WMS Industries Inc., will continue to develop and manufacture slot machines and other gaming products based on the Hasbro board game Monopoly. In addition, WMS will have exclusive worldwide rights to create games based on other Hasbro mainstays, including Battleship and Clue.

“WMS has proved itself time and again with its very innovative MONOPOLY gaming program and we are confident that they will continue to do an outstanding job in creating strong entertainment value in their area of expertise with additional Hasbro brands,” said Mark Blecher, Hasbro’s senior vice president and general manager of digital media and gaming, in a statement.

Orrin J. Edidin, president of WMS Industries, stated, “This extension of the Monopoly license agreement acknowledges our consistent development of great games based on this worldwide icon and secures access for our creative teams to one of the world’s most enduring entertainment properties for many years to come that will benefit our casino customers, casino patrons, Hasbro and WMS.

“As adoption of networked gaming technology and applications gain momentum, we expect to leverage this broader base of highly recognizable, branded entertainment properties in new player-appealing content, game features and functionality,” Edidin added. “We have enjoyed a strong and mutually rewarding relationship with Hasbro and believe our expanded relationship will continue to generate solid returns for both companies.”

Hasbro’s offerings include a variety of games, including traditional board, card, hand-held electronic, trading card, role-playing and digital versatile disc (DVD) games, as well as electronic learning aids and puzzles. Toy offerings include boys’ action figures, vehicles and playsets, girls’ toys, electronic toys, plush products, preschool toys and infant products, electronic interactive products, creative play and toy-related specialty products.

In today’s daily chart, HAS’s MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. The stock’s Bollinger Bands are the tightest they have been during the last 6 months, which relates to the limited range that HAS has exhibited over the last 20 days, a condition typically preceding periods of high volatility. Trading near its lower Bollinger Band, the stock reflects low price relative to its recent price action.

Scientific Games Corp. (Nasdaq: SGMS) Stock Alert – SGMS Wins Arizona Lottery Instant Ticket Contract

Scientific Games Corp. (Nasdaq: SGMS) shares dropped 6.32% to trade at $17.94 at noon today. Scientific Games, a supplier of technology-based products, systems and services to gaming markets worldwide, announced it has been awarded a primary vendor contract to supply instant tickets to the Arizona Lottery.

Commenting on the news, SGMS CEO Joe Wright made the following statement, “We are very pleased with this show of confidence from the Arizona Lottery. The Arizona Lottery has been one of the more pro-active lotteries in the recent economic downturn, with instant ticket sales experiencing 10% year-over-year growth so far this year. This is especially impressive growth given the current economic environment and we are pleased to have the Arizona Lottery acknowledge our efforts.”

“Scientific Games has been our vendor since inception in 1981 and in that time our instant ticket sales have grown tremendously. Earlier this year we introduced one of Scientific Games’ Spotlight Games and have been extremely happy with the results. We hope to continue this tradition of growth and provide more revenue for our state during these tough economic times,” said Jeff Hatch-Miller, executive director of the Arizona Lottery, in a press release.

According to the report, the contract, which is expected to begin January 14, 2010, has an initial term of five years with five one-year extension options. It is expected to result in about $2 million in revenue per year.

Terms of the pact were not disclosed.

Last month, Scientific Games announced a new contract from the Massachusetts State Lottery and a contract extension from the California State Lottery.

Scientific Games operates through three business segments: Printed Products Group, Lottery Systems Group and Diversified Gaming Group.

The Printed Products Group consists of the company’s instant lottery ticket business and its prepaid phone card business. Instant tickets and related services includes ticket design and manufacturing, as well as value-added services, including game design, sales and marketing support, specialty games and promotions, inventory management, and warehousing and fulfillment services. The Lottery Systems Group is a provider of customized computer software, equipment and data communication services to government-sponsored and privately operated lotteries in the United States. The Diversified Gaming Group provides services and systems to private and public operators in the gaming markets and in the pari-mutuel wagering industry.

In today’s daily chart, SGMS’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum.

Genworth Financial Inc. (NYSE: GNW) Stock Alert – GNW Pays its Remaining 2009 long-term Debt Obligations in Full

Genworth Financial Inc. (NYSE: GNW) shares dropped 4.16% at noon today, trading at $6.45. Genworth is a financial security company dedicated to providing insurance, investment and financial solutions to approximately 15 million customers, with a presence in approximately 25 countries.

The Virginia insurer recently announced it has paid in full its remaining 2009 long-term debt obligations.

The company stated in its press release it paid $331 million on its senior notes due on June 15. The news follows last month’s repayment of $330 million of 5.231% Senior Notes that were due in May 2009. It said it has no has no long-term debt maturities until 2011.

Also, Genworth reported that it ended the most recent quarter with a total of $7.1 billion of cash and cash equivalents including $768 million at the holding company level. It expects to dividend an additional $200 million from non-U.S. subsidiaries to the holding company during 2009 and to end the year with holding company cash of approximately $150 million, in line with historic levels.

As of December 31, 2008, Genworth had three segments: Retirement and Protection, International and U.S. Mortgage Insurance. Retirement and Protection segment offers a variety of protection, wealth accumulation, retirement income and institutional products. Through the International segment the company is a provider of mortgage insurance products in Canada, Australia, New Zealand, Mexico, Japan and multiple European countries. In the United States, it offers mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans, also known as flow mortgage insurance. On June 20, 2008, the company acquired National Eldercare Referral Systems, Inc. On August 29, 2008, it acquired Quantuvis Consulting, Inc.

In today’s daily chart, GNW’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock.

CEMEX, S.A.B. de C.V. (NYSE: CX) Stock Alert – CX Reaches Agreement to Sell Australian Operations to Holcim Group for approx. A$2.02 billion

CEMEX, S.A.B. de C.V. (NYSE: CX) shares dropped 9.61% at noon today, trading at $10.25. CEMEX, through its operating subsidiaries, engages in the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials.

The Mexico-based holding company announced it has reached an agreement to sell its Australian operations to Swiss cement maker Holcim Group for approximately A$2.02 billion (($1.62 billion). A move seen as part of CEMEX’s overall strategy to improve its financial flexibility.

According to the report, CEMEX is selling 249 ready-mix concrete plants, 83 aggregates quarries and 16 concrete pipe and products plants – a total of 348 facilities located throughout Australia. These operations generated revenues and EBITDA in 2008 of approximately A$1.86 billion and A$313 million, respectively.

Also, the sale includes CEMEX’s 25% stake in Cement Australia, which has an annual production capacity of 5.1 million tons of cement, including the expansion under construction in the Gladstone plant, and assets which nclude four cement plants and one grinding mill.

The agreement is expected to fulfill various closing conditions, including confirmatory due diligence, regulatory approvals and funds from buyer financing being disbursed, among others. The maximum period of time to meet all closing conditions is six months.

BBVA, BNP Paribas, Citi, HSBC, Santander and The Royal Bank of Scotland, plc, are acting as financial advisors to CEMEX in this transaction.

As of December 31, 2008, CEMEX operated 64 cement plants, over 2,288 ready-mix plants, 493 aggregate quarries, 253 land-distribution centers and 88 marine terminals. During the year ended December 31, 2008, CEMEX sold its operations in Italy, consisting of four cement grinding mill facilities.

On March 31, 2008, CEMEX announced the sale, through a subsidiary, of AXTEL, S.A.B. de C.V. On December 26, 2008, CEMEX sold its Canary Island operations, consisting of cement and ready-mix concrete assets in Tenerife and 50% of the shares in two joint ventures, Cementos Especiales de las Islas, S.A. and Inprocoi, S.L. to several Spanish subsidiaries of Cimpor Cimentos de Portugal SCPS , S.A.

In today’s daily chart, CX’s Bollinger Bands indicate a relatively stable condition as reflected by tighter than normal band width. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD currently reflects weak bearish signal, with the indicator above the critical level of 0 but has crossed below its 9-day signal line, indicating that positive momentum.

Illinois Tool Works Inc. (NYSE: ITW) Stock Alert – ITW Boosts Q2 Outlook

Illinois Tool Works Inc. (NYSE: ITW) shares dropped 3.36% at noon today, trading at $36.81. Illinois Tool Works Inc. (ITW) is a multinational manufacturer of a range of industrial products and equipment.

The Glenview-based company recently announced its is lifting its forecast for second-quarter earnings by 4 cents a share to a range of 29 cents to 41 cents, attributable to better results from its decorative surfaces segment, which sells high-pressure laminates. For its revenue, the company expects a 5% to 11% improvement from the previous quarter’s restated revenue, implying revenue of $3.31 billion to $3.5 billion.

Analysts, on average, see earnings per share of 30 cents in the period, according to a poll by FactSet Research.

ITW’s boosted second-quarter outlook comes after the company decided not to sell its decorative surfaces segment, as had been previously planned, last month. It said income from that unit be calculated as earnings from continuing operations for the current second quarter.

ITW has approximately 875 operations in 54 countries, which are aggregated and organized into seven segments: Industrial Packaging, Power Systems & Electronics, Transportation, Construction Products, Food Equipment, Polymers & Fluids, and All Other. In September 2008, ITW announced that it had acquired Avery Weigh-Tronix, a manufacturer of industrial weighing products and systems. In July 2008, the company acquired the assets of TRYMER polyisocyanurate (PIR) rigid foam business.

In June 2008, ITW announced it completed the acquisition of Quipp, Inc. In March 2008, the company acquired VS Acquisition Holding Inc., the parent company of Vitronics Soltec Corp.. In March 2009, KapStone Paper and Packaging Corp. announced the sale of the assets of its Ride Rite business to ITW.

In today’s daily chart, ITW is trading within its Bollinger Bands, a normal condition signaling that the stock is neither overbought nor oversold relative to the recent price action. MACD reflects a strong bullish signal, with the indicator above the 9-day moving average signal line, and also above the 0 level, indicating that moving averages are trending higher. With share prices currently above the stock’s 13-day moving average, a bullish trend is indicated. Also, a rising moving average signals that there has been buying interest in this stock.

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