Stocks Fall To Session Low (OCR, GMCR, GWW, VRTX, CTRP, TFM)
U.S. stocks pared its entire gain and the major indices slipped to session lows as investors shifted their focus towards upcoming election in Germany, which would decide if it will stay in the Euro zone or not.
Earlier stocks opened gapped up as during the weekend, Spain asked for as much as 100 billion euros in European rescue funds for its stricken banking sector. Also there is the prospect of Greece exiting the euro after elections June 17.
Omnicare, Inc.(NYSE:OCR) plunged 8.78% to $30.43 after the healthcare services company’s CEO John Figueroa abruptly quits, and the company provides no explanation. CFO John Workman, will serve as interim CEO as the board searches for a permanent replacement.
Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) slid 7.31% to $21.44 and made a new 52-week low of $21.06 as as Kroger reportedly plans to sell store-branded single-serve coffee cups compatible with Green Mountain’s Keurig brewers. The move isn’t a surprise, says an analyst, but actually seeing on paper that a major retailer is going to compete with your product still has plenty of shock value.
W.W. Grainger, Inc.(NYSE:GWW) lost 4.08% after the industrial maintenance and safety products supplier reports May 2012 sales increased 13% Y/Y boosted by contributions from acquisitions, with June growth up so far in “low double digits” but not as strong as May. Daily sales rose 8% in the U.S., 9% in Canada and 86% in the rest of the world.
Vertex Pharmaceuticals Incorporated(NASDAQ:VRTX) declined 3.18% to $55.17. The company is looking for a new head of its commercial team after reporting late Friday that Chief Commercial Officer Nancy Wysenksi will retire. The departure comes after VRTX last month revealed it had released incorrect clinical data that overstated the benefit of a cystic fibrosis therapy.
Ctrip.com International, Ltd. (ADR)(NASDAQ:CTRP) slumped 8.79% to $17.02 and made a new 52-week low of $16.95. This morning, analyst at Mirae downgraded the stock to Hold, which thinks a decision by rival Qunar (majority-owned by BIDU) to sell hotel room inventory held by wholesalers online could pose a threat to Ctrip’s business. Mirae adds weakening economic conditions are driving wholesalers to sell more of their inventory online, and that Ctrip will struggle to cope.
The Fresh Market Inc(NASDAQ:TFM) was down 2.75% to $53.72 s after the high-end grocer announces a 10M-share secondary offering of its common stock worth ~$525M by members of the founding Berry family. Following the sale, the family will own 21% of TFM’s outstanding shares. TFM won’t get any of the proceeds from the secondary offering.