Kroger Kicks Off Expansion Strategy and 3 Stocks Enjoying 52-Week Highs
Aegerion Pharmaceuticals (NASDAQ:AEGR): Shares of Aegerion Pharmaceuticals, which has developed a treatment for Homozygous Familial Hypercholesterolemia, HoFH, are rising for the second day in a row. Federal Drug Administration documents for Aegerion’s drug, Lomitapide, released yesterday, said that the drug increases liver fat, but that the process appears to be reversible. Furthermore, the documents reported that an increased amount of liver tumors appeared in mice, only after being treated with the drug for two years. A small, statistically significant increase in intestinal tumors occurred in mice that received twenty five times the amount of the drug that humans would be given. In late morning trading, Isis slumped $1.96, or 14.91%, to $11.19, while Aegerion rose $1.14, or 6.53%, to $18.60. Their shares closed at $19.15, up $1.69 or 9.68% on the day. They have traded in a 52-week range of $11.75 to $18.21.
Gildan Activewear (NYSE:GIL): Gildan Activewear issued a press release to explain the events which have given rise to a lawsuit filed on October 12 by Russell Brands LLC, an affiliate of Fruit of the Loom, alleging trademark infringement and unfair competition. Gildan said, “In line with their strategy to further develop their presence as a supplier of branded products to United States retailers, the Company has recently been successful in obtaining several new programs. One such program will supply all of the men’s and boys’ fleece business for a retail customer, which was previously supplied by Russell Brands under their Jerzees label. This program is now being supplied under the Gildan Smart Basics label. As part of the terms to obtain this program, Gildan was required to purchase a small amount of Jerzees inventory from the retailer. Their management subsequently became aware that a portion of the Jerzees inventory that they had purchased was shipped to the retail customer bearing Gildan brand identification. Gildan took immediate steps to correct the situation by seeking to retrieve all of the Jerzees products which had been shipped to the retailer. The firm is confident that the amount of Jerzees products, under dispute is negligible, and estimates that approximately $100,000 of the disputed Jerzees products have been sold to consumers. They are currently conducting an internal review of the events, and are instituting internal controls relative to this matter. Although the dollar amounts involved in the dispute are not material, the company is treating this situation seriously. Gildan is proud of the quality of their products and has no wish to associate them with those of another manufacturer or another brand.” Their shares closed at $33.94, up $0.88 or 2.66% on the day. They have traded in a 52-week range of $16.32 to $33.44.
Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>
Johnson & Johnson (NYSE:JNJ): Johnson & Johnson views fiscal their year 2012 sales of $68.6-$69.3 billion, on a constant currency basis. The company said they are not predicting the impact of currency movements, but if currency exchange rates, for the remainder of 2012, were to stay where they were, as of last week, sales growth rate would be negatively impacted by approximately 2.5% for the year. Under this scenario, they would expect reported fiscal year 2012 sales growth of 3%-4%, for a total expected reported sales of $67-$67.6 billion. Guidance from their third quarter, earnings conference call, gave a consensus for 2012 revenue of $67.3 billion. Their shares closed at $69.55, up $0.95 or 1.38% on the day. They have traded in a 52-week range of $61.05 to $69.75.
Kroger Company (NYSE:KR): At their investor conference, Kroger Company said that they will invest in a targeted expansion strategy to increase square footage and store penetration in existing markets. They also plan on entering new markets. Kroger raised their long term, fully-diluted earnings per share growth target from 6-8% to 8-11%, plus a current dividend of 2.5%. To support their growth strategy, the company expects to increase capital spending by an incremental $200 million annually and increase return on invested capital. Their shares closed at $24.43, up $1 or 4.27% on the day. They have traded in a 52-week range of $20.98 to $24.83.