All indices gaining
The Russell 2000 (NYSE: IWM) and the Dow are higher following news of the latest corporate deal-making. At 11:37 a.m. ET the Russell 2000 was up 2.07 points, or 0.25%, to 839.55. The Dow Jones Industrial Average had added 59.42 points, or 0.44%, to 13,561.12.
Gander Mountain Co. (Nasdaq: GMTN), which operates retail stores specializing in outdoor lifestyle products and services, has won a long-standing dispute with rival Cabela’s Inc. (NYSE: CAB) over the right to use certain Gander Mountain trademarks in direct marketing, the St. Paul, Minn.-based firm said after Tuesday’s close. The decision is subject to an appeal. The stock is up $0.94, or 9%, to $11.03.
Shares of Directed Electronics, Inc. (Nasdaq: DEIX), are down $0.96, or 11%, to $7.44, following news the designer of home theater loudspeakers and vehicle security anticipates a decline in yearly revenues from its satellite radio business. Revenues from the sale of its branded receivers will decline between 35% and 40% from the prior year, the Vista, Calif.-based company reported after Monday’s close. That comes as a result of a shift to lower prices units and a reduction in planned unit volume. Brokerage firm Wachovia securities responded by downgrading the stock to “Market Perform” from “Outperform.”
Shares Amtech Systems, Inc. (Nasdaq: ASYS) are rising on news the supplier of furnace systems used for semiconductor and solar cell manufacturing has received $4.4 million in additional orders. The new orders are for diffusion processing systems from the solar cell industry by new customers from Asia and Europe, as well as one existing client, the Tempe, Ariz.-based company said before the start of trading. Deliveries will begin in fiscal 2008. Amtech Systems has received $14.1 million of solar orders year-to-date for fiscal 2007. The stock is up $2.40, or 24%, to $12.40.
In corporate news, Midlothian, Texas-based steelmaker Chaparral Steel Co. (Nasdaq: CHAP) will be bought by Tampa, Fla.-based Gerdau Ameristeel Corp. (NYSE: GNA) for $4.22 billion in cash.
Also making waves is YUM! Brands, Inc. (NYSE: YUM) on news the owner of KFC, Pizza Hut, Taco Bell, and Long John Silver’s restaurants has received an upgrade ahead of the release of its earnings report later today.
