Featuring RAD’s Q1 results; TJX’s $9.75M data breach settlement; XDSL’s nanobattery technology; C’s decision to boost employee salaries to offset bonuses; and SVU’s Q1 profit.

Today’s Stock Alerts include: Rite Aid Corp. (NYSE: RAD), The TJX Companies Inc. (NYSE: TJX), mPhase Technologies Inc. (OTCBB: XDSL), Citigroup Inc. (NYSE: C) and SUPERVALU Inc. (NYSE: SVU).

Rite Aid Corp. (NYSE: RAD) Stock Alert - RAD Narrows Loss, but Issues Downside Guidance for FY10

Retail drugstore chain Rite Aid Corp. (NYSE: RAD) today announced its first-quarter results, posting a loss of $98.4, or 11 cents a share, for its fiscal first quarter ended May 30, 2009, its eighth consecutive quarterly loss. However, thanks to recent store closures and cost cuts, the company’s loss came in smaller than expected.

In the year-ago period, Rite Aid posted a loss of $156.6 million, or 20 cents. Analysts expected the company to post a loss of 13 cents a share.

“We are in a much stronger financial position today with the significant improvement in cash flow and liquidity we achieved in the first quarter and the progress we have made refinancing a major portion of our Sept ‘10 debt maturities. The increase in liquidity gives us ample funds to execute our business plan and the extended maturities give us more time for our initiatives to continue to improve our performance,” chairman and CEO Mary Sammons said in a statement.

Hurt by refinancing expenses, the company, however, said it expects a greater deficit for the year.

With the increased expense guidance of $55 million, or about 7 cents per share, Rite Aid anticipates an annual loss of $265 million to $490 million, or 33 cents to 59 cents per share. The company previously expected a smaller loss of $210 million to $435 million, or 26 cents to 53 cents per share, although its earlier estimates do not include interest expenses.

According to the report, Rite Aid is refinancing loans that come due in September. The company said it completed refinancing of a $145 million term loan, and has partly completed refinancing for its $1.75 billion revolving credit facility. It now has a $525 million term loan due in June 2015, and $410 million in senior notes due June 2016, and says it secured commitments for $960 million of a proposed $1 billion revolving credit facility due September 2012.

On the bright spot, the company reaffirmed its $26.3 billion to $26.7 billion revenue guidance for fiscal 2010. Meanwhile, it still says same-store sales, a key measurement of retailer health, will rise 0.5% to 2.5%. Same-store sales measures results only at stores open for at least one year.

Analysts expect a loss of 42 cents per share and revenue of $26.3 billion for the year.

Rite Aid operates its drugstores in 31 states across the country and in the District of Columbia. As of February 28, 2009, it operated 4,901 stores. In its stores, the company sells prescription drugs and an assortment of other merchandise, which it calls front-end products.

During the fiscal year ended February 28, 2009 (fiscal 2009), prescription drug sales accounted for 67.2% of its total sales. The company offers approximately 28,000 front-end products, which accounted for the remaining 32.8% of its total sales during fiscal 2009. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and other everyday and convenience products, as well as photo processing. It offers approximately 3,300 products under the Rite Aid private brand.

In today’s daily chart, RAD 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 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 has begun to slow. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

The TJX Companies Inc. (NYSE: TJX) Stock Alert - TJX Agrees to Pay $9.75 Million in Settlement with Multiple States over Data Security Breach

The TJX Companies Inc. (NYSE: TJX), an off-price retailer of apparel and home fashions in the United States and worldwide, today announced it reached a settlement with multiple states on data theft.

In January 2007, it was disclosed that a data security breach exposed at least 45.7 million credit and debit cards to possible fraud in the computer systems breach that began in July 2005. The breach wasn’t detected until December 2006.

According to the press release, the parent company of retailers T.J. Maxx and Marshall’s will pay $2.5 million to create a data security fund for the states, which include Nebraska, as well as a settlement amount of $5.5 million and $1.75 million to cover expenses related to the states’ investigations. TJX said the settlement’s costs are already accounted for in a 2007 reserve it created.

In addition, TJX must certify that its computer system meets detailed data security requirements specified by the states and must encourage the development of new technologies to address weaknesses in the U.S. payment card system.

The settlement was made with a multistate group of 41 attorneys general.

TJX, however, stressed that it “firmly believes” it did not violate any consumer protection or data security laws.

“The decision to enter into this settlement reflects TJX’s desire to concentrate on its core business without distraction and to promote cyber security measures that will benefit all consumers,” the company said in a statement.

TJX operates five business segments, three in the United States and one each in Canada and Europe. All of the company’s stores, except HomeGoods and HomeSense, sell apparel for the entire family, including footwear, jewelry and accessories, and a limited offering of giftware and home fashions. The HomeGoods and HomeSense stores offer home fashions and home furnishings. During the fiscal year ended January 31, 2009 (fiscal 2009), TJX derived approximately 62% of its sales from clothing (including footwear), 25% from home fashions, and 13% from jewelry and accessories. In fiscal 2009, the company sold Bob’s Stores, a branded apparel chain.

In today’s daily chart, TJX’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 has begun to slow.

mPhase Technologies Inc. (OTCBB: XDSL) Stock Alert - XDSL Reports Major Milestone in the Development of its Smart NanoBattery Technology.

mPhase Technologies Inc. (OTCBB: XDSL) reported it has successfully manufactured a 6-inch silicon-based wafer containing its key membrane (separator) technology, a major milestone in the development of its Smart NanoBattery Technology.

In its release, the company said it has successfully manufactured a 6-inch silicon-based wafer containing its key membrane (separator) technology. This separator is responsible for keeping the Smart NanoBattery’s chemicals separated until activated. The membrane’s unique surface and structure allows for control of a liquid on a nanostructured surface, the report said.

Commenting on this development, CEO Ron Durando stated, “This fabrication of the silicon membrane is a milestone achievement that represents a key advancement in the STTR development program. With each step forward, we are making technical advancements that have never been accomplished before. This advancement creates the potential for an unattended device to be powered by a battery with an unsurpassed shelf life that can be electronically controlled.”

The Smart NanoBattery is being developed as part of the U.S. Army STTR Program. mPhase was awarded a two year phase II development contract by the U.S. Army in September 2008 to develop this unique new battery technology for military purposes.

Last month, the Swiss publication “Sensor Report” featured the Smart NanoBattery, depicting Smart NanoBattery structures that mPhase has developed.

mPhase Technologies  is a development company specializing in microfluidics, icroelectromechanical systems (MEMS) and nanotechnology.

Through its wholly owned subsidiary AlwaysReady Inc., mPhase is commercializing its first nanotechnology-enabled product for military and commercial applications-The Smart NanoBattery providing Power On Command. The battery technology, based on the phenomenon of electrowetting, offers a way to store energy and manage power.

The platform technology behind the Smart NanoBattery is a porous nanostructured material used to repel and precisely control the flow of liquids. The material has a Smart Surface that can potentially be designed for self-cleaning applications, water purification/desalination, liquid filtration/separation, and environmental cleanup.

In today’s daily chart, XDSL’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. 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. Trading near its upper Bollinger Band, the stock reflects high price relative to its recent price action.

Citigroup Inc. (NYSE: C) Stock Alert - C to Boost Employee Salaries amid New Restrictions on Bonus Payments

Looking to offset declines in bonuses, Citigroup Inc. (NYSE: C), which recently accepted $45 billion of federal bailout money, is reportedly raising base salaries for many of its employees.

The move comes as Citi restructures its compensation program amid new restrictions on bonus payments since it received bailout funds. Report has it that a portion of those funds will soon be converted to common stock, giving the government a 34% stake in the bank.

Against the backdrop of credit crisis and ongoing recession, the troubled bank has reported six straight quarterly losses totaling nearly $30 billion.

According to people familiar with the situation, the changes are not expected to affect overall compensation expense, though some employees may be paid more and others less, and the company expects to issue new stock options to help retain employees, Reuters reported.

The company declined to comment directly on the changes but offered the following statement, “Citi continues to examine ways to ensure its employee compensation practices are competitive in this very challenging market environment. Any salary adjustments are not intended to increase total annual compensation, rather to adjust the balance between fixed and variable compensation.”

Some employees salaries will rise by as much as 50% because of the change in compensation structure, according to a New York Times report published Wednesday. In addition, Citi is reportedly planning to award new stock options to employees to help ensure they remain at the bank.

Citigroup is a global diversified financial services holding company. The company is engaged in providing a range of financial services to consumers and corporate customers. As of May 4, 2009, Citigroup had more than 200 million customer accounts and did business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citigroup provides consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management.

In today’s daily chart, C 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 strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

SUPERVALU Inc. (NYSE: SVU) Stock Alert - SVU Sees Lower-than-expected Q1 Profit

Against the backdrop of tightening consumer spending in the recession, SUPERVALU Inc. (NYSE: SVU) recently warned that its first-quarter profit will be substantially below analysts’ expectations.

In a release, CEO Craig Herkert stated, “Consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%.”

Analysts, on average, expected earnings of 65 cents a share for the grocer, according to a poll by FactSet Research.

In an effort to lure consumers, the supermarket operator also higher levels of promotional spending because of the lower customer spending and price cuts as it faces competition from lower-priced retailers like Wal-Mart and Safeway.

The company plans to report its first-quarter results on July 28, as well as provided an update on annual outlook. Analysts expect a full-year profit of $2.50 a share.

Commenting on the news, Pali Capital analyst Robert Summers said. “The profit warning will place an overhang on the entire sector as investors begin to speculate on how Supervalu will reinvigorate sales and stem the decline. Competition could dramatically escalate over the near-term, particularly given the weak overall consumer environment.”

SUPERVALU is a grocery channel that conducts its retail operations under the banners, such as Acme Markets, Albertsons, Bristol Farms, bigg’s, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Save-A-Lot, Shaw’s Supermarkets, Shop ’n Save, Shoppers Food & Pharmacy and Star Markets. Additionally, the company provides supply chain services, primarily wholesale distribution, across the United States retail grocery channel.

The company operates in two segments: Retail food and Supply chain services. During the fiscal year ended February 28, 2009 (fiscal 2009), the company added 44 new stores through new store development and closed 97 stores. The company leverages its distribution operations by providing wholesale distribution and logistics and service solutions to its independent retail customers through its Supply chain services segment.

In today’s daily chart, SVU’s Bollinger Bands indicate greater than normal volatility as reflected by an increase in distance between the upper and lower bands. Trading near its lower Bollinger Band, the stock reflects low price relative to its recent price action. MACD reflects strong bearish signal, with the indicator below the 9-day moving average signal line, and also below the critical 0 level, indicating that moving averages are trending lower. With share prices currently below the stock’s 13-day moving average, the bearish sign is more pronounced with decreasing moving averages.

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