Still key here, the ongoing review of stock option grant practices and unfortunately, the waiting game persists. Most concern focuses on whether any top UNH executives could be tainted here and if as a result, there would be departures. An integrity call?
Upcoming events to watch: 10-Q filing (due today, the nearest-term factor and a technology company delaying for this reason today, inserting some collateral damage), internal review findings (possibly within next 30 days?), potential for formal SEC investigation. 30% later, what to do now? Ultimately the long-term asset value is in-tact and relative valuation best in years. That said, we admit that timing for resolution and impact of near-term events is difficult to assess.
JP Morgan downgraded Genzyme (GENZ) to Neutral.
Watson Pharmaceuticals (WPI) said income fell to $25.2 million from $38.6 million. Revenue rose 2% to $407.2 million, helped by higher generic product sales, but offset by lower brand product sales. Analysts expected revenue of $428.8 million.
King Pharmaceuticals (KG) said income fell 28% to $51 million from $70 million in the year-ago period. Revenue rose 31% to $484 million. Excluding items, earnings rose 40% to $106 million from $76 million in the year-ago period.