Stocks in Focus Friday: Amazon.com, Micron Tech, Marriott, Walgreen

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Amazon.com (NASDAQ:AMZN): Amazon.com will begin selling its Kindle e-readers in Japan as early as April, reports Nikkei. The devices are expected to priced for less than 20,000 yen.

Micron Tech (NASDAQ:MU): Prices of DRAM computer memory have probably bottomed, said Micron (NASDAQ:MU) President Mark Adams, according to Bloomberg. The DRAM market is “starting to feel stable,” Adams added.

Marriott (NYSE:MAR): Marriott announced that its board has increased the authorization to repurchase the company’s Class A common stock by an additional 35M shares, for a total of approximately 40M shares currently authorized for repurchase.

Walgreen (NYSE:WAG): Walgreen shares continue their volatile trading on greater than usual volume, as speculation continues to circulate about a new contract between the drug store chain and pharmacy benefit management company Express Scripts (NASDAQ:ESRX). In a note to investors, Macquarie speculated that the two companies would agree to a contract within the next several months. The firm, which upgraded Walgreen to Outperform from Neutral, predicts that Express Scripts will come under increased pressure from its clients to resolve the dispute. Furthermore, Express Scripts could have problems during its 2013 PBM selling season if its doesn’t reach a deal with Walgreen, Macquarie contends. Conversely, Citigroup on February 7 stated that Walgreen and Express Scripts were unlikely to reach a new accord. After conducting a survey of benefits managers, the firm reported that 35% of the managers polled don’t expect the companies to resolve their dispute. Citigroup downgraded Walgreen to Sell form Neutral, noting that 75% of those surveyed said that employees hadn’t significantly complained about Walgreen’s departure from Express Scripts’ network. Also muddying the picture is the controversial planned merger between Express Scripts and Medco Health Solutions (NYSE:MHS), which may be decided upon by the FTC within the next 30 days, according to Bloomberg. Earlier in the week, a Reuters story set off rumors that the FTC was preparing to block the tie-up. Near mid-day, Walgreen has climbed 38c, or 1.11%, to $34.59. The stock has risen about 2.7% since Monday’s open. Meanwhile, Express Scripts lost 0.26% today, to stand at $50.15 near noon. ESRX has fallen about 1.9% since the start of the week.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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