5 Stocks on the Move on Tuesday

by: Alex Shadunsky

With the stock market posting a strong rally on Tuesday, the list of big losers was sparse, however, these 5 stocks still managed to tumble despite all of the stocks in the green around them.

Rudolph Technologies (NASDAQ:RTEC) closed 9% lower after the company provided an updated Q2 forecast and announced a convertible senior note offering. The company previously announced that it expected revenue for Q2 to be between $50.0 and $55.0 million and GAAP earnings per share of between $0.18 and $0.22. Based on the company’s unaudited preliminary analysis, the company estimates its revenue for Q2 will be between $50.0 and $52.0 million and its GAAP earnings per share will be consistent with its previously announced range. During the quarter, the company experienced continued strength across its major business lines, partially offset by softness with certain customers, as experienced by others in its industry.

Rudolph Tech also announced that announced it intends to offer $50 million in aggregate principal amount of convertible senior notes due 2016.

Avery Dennison (NYSE:AVY) closed down 14% after it provided disappointing Q2 guidance. The company announced that it expects to report unaudited second quarter 2011 net sales of approximately $1.7 billion, a decline versus the same period last year of 2% excluding the impact of currency. Unit volume was down an estimated 5%, driven primarily by declines in the company’s largest segments Pressure-sensitive Materials and Retail Branding and Information Solutions. Second quarter results for the company’s Office and Consumer Products segment were in line with internal expectations.

The company expects second quarter earnings per share to be between $0.64 and $0.69, and adjusted earnings per share to be between $0.74 and $0.79. These estimates reflect lower-than-expected volume, partially offset by lower employee-related expenses. Analysts expected EPS of $0.88. Actual results are subject to finalizing several items, including a projected tax rate for the year in the high 20% range. Year-to-date free cash flow through the second quarter is expected to be approximately negative $165 million, reflecting lower operating results. The company added that volume in its two largest segments was negatively impacted as consumer packaged goods companies and apparel retailers and brands became more cautious about consumer sentiment and the impact of rising retail prices to offset inflation.

Lincare Holdings (NASDAQ:LNCR) fell 8% after it reported weak Q2 results. EPS for the quarter was $0.45 vs. analyst estimate of $0.51. Revenues came in at $449 million vs. $447 million consensus. Management noted that in addition to the ongoing effects of the Medicare payment changes in 2011, the company incurred higher costs and expenses in Q2 compared with the first three months of this year. These include higher costs of goods sold of $18.1 million attributed to increases in specialty pharmacy drug volumes and other non-rental items, such as inhalation drugs and CPAP supplies, and increases in certain operating and other expenses attributable in part to the expansion of new strategic business lines.

Neostem (NBS) tumbled 20% after the company announced that it announced and priced a 13.75 million units offering at $1.20 a share. Each unit consists of one share of common stock and a warrant to purchase 0.75 of a share of common stock with a per share exercise price of $1.45. The company expects to receive $16,500,000 in gross proceeds, prior to deducting underwriting discounts and commissions and offering expenses payable by the company. These funds will be used for working capital purposes, including research and development of cell therapeutic product candidates, expansion of business units and other general corporate purposes.

Star Bulk Carriers (NASDAQ:SBLK) fell 18% after the company announced and priced an offering of 16.5 million shares at $1.80 per share. The net proceeds from the sale of the offered common shares will be approximately $28,011,400 (or approximately $32,249,860 if the underwriters exercise the over-allotment option in full). The company expects to use the net proceeds from the offering to fund a portion of the aggregate purchase price for two secondhand drybulk carriers it has contracted to acquire by August 31, 2011 and for general corporate purposes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.