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Thursday, Mar 28, 2024

Ryland Group Downgraded As Housing Inventories Rise

After outpacing the rest of the housing market in its most recent financial reports, the Ryland Group Inc. was downgraded by a J.P. Morgan Securities analyst, as inventory levels have risen throughout the home-building world. Michael Rehaut changed his rating on Ryland to neutral from overweight meaning its value is somewhat over-inflated, although he said that the company’s long-term outlook is still pretty rosy. He was expecting Ryland to report earnings per share of $9.25 this year, down from his previous expectations of $9.60. Last year, the company reported earnings of $447.1 million, which was $9.03 per share. The homebuilding sector has been indicating to investors over the last few weeks that the market is not quite what it once was. Toll Brothers, which builds luxury homes, said earlier this month that its home-closing estimate had fallen once again and said the value of signed contracts was down 29 percent when compared with the same quarter last year. Hovnanian Enterprises has also seen sales slow, and Pulte homes reported lower orders than last year as well. Ryland has seen its stock drop about 10 percent altogether this year. Disney Pushes Back Narnia The Walt Disney Co. said last week that it will delay the release of “Prince Caspian,” which will be the sequel to “The Chronicles of Narnia: The Lion, the Witch and the Wardobe.” “Prince Caspian” was originally scheduled to be released for the 2007 holiday season, but will now be released in the summer of 2008. The company said that the film’s director needed more time with the film because of the extensive special effects required. The first Narnia movie was the highest-grossing live action movie of all time for Disney. Since it release, the movie has grossed over $741 million. Health Net Triples Profits Health Net Inc. reported that increased enrollees in its Medicare prescription drug programs and an increase in other business segments led to a huge increase in its net income for the most recent quarter. The Woodland Hills-based health insurer reported first-quarter net income of $76.6 million, or $0.65 per share, on revenues of $3.19 billion, compared with net income of $21.3 million, or $0.19 per share, on revenues of $2.91 billion during the same period last year. Earnings in the first quarter of 2005 included over $67 million in pre-tax charges used to settle a class-action lawsuit brought on by physicians. Amgen Dispute Investors and analysts aren’t entirely sure that Amgen will be entirely successful in fighting off a threat to its blockbuster anemia drug Epogen. The Thousand Oaks biotech giant is fighting against Roche Holdings AG, which is importing pegylated recombinant human erythropoietin called Cera, which is used to increase red blood cell counts. Amgen claims the company is violating Amgen’s patents and argued against the importation in the U.S. District Court of Massachusetts. A Merill Lynch analyst wrote that he thinks it is unlikely that a judge will dismiss the case, and that it could drag potentially into 2007. Cera has not yet been approved for use either in Europe or the United States. The U.S. International Trade Commission also said that it would look into Amgen’s claims. Aranesp, another Amgen product, is a longer-lasting version of Epogen, and the drugs combined to generate $6 billion in sales for the company last year. WellPoint Extends Program Anthem Blue Cross and Blue Shield of Nevada has taken up the Tonik health care offering in order to snag younger customers in their 20s. The program, introduced last year by another WellPoint subsidiary, Blue Cross of California, provides more affordable medical coverage for people from ages 19-29. It covers basic preventative needs and serious medical problems, as well as dental visits and eye exams. The premiums for the plans will range from $91 to $178. The company says that the 20-something demographic is generally just starting their careers and often less likely to have insurance offered by their employers. The program is aimed at signing up some of the 82,000 19 to 29-year-olds living in the state without health insurance. IHOP CEO Also Chairman Julia Stewart, who has been praised by analysts for leading IHOP Corp., to impressive financial performance over the last year, has been named chairman of the board in addition to her titles of president and CEO. Stewart, who has been with the company since 2001, will replace Larry Alan Kay, who is staying on the board as lead director. Currently, IHOP operates about 1,250 International House of Pancakes restaurants throughout the United States and Canada. Image Selects Sherman Oaks Firm Chatsworth-based Image Entertainment has given exclusive sales agency rights of “Rising Son: The Legend of Skateboarder Christian Hosoi,” to Vision Films, an independent distributor in Sherman Oaks. The film was produced by QD3 Entertainment in association with Quiksilver, a brand marketed toward the skateboarding demographic. The movie is narrated by Dennis Hopper. The film follows Hosoi’s beginnings in the sport to his time in federal prison for drug trafficking and ultimate resurgence in skateboarding, and features interviews from a number of skateboarding stars. Image will be in charge of North American broadcast, theatrical and video soundtrack rights, and Vision Films will handle foreign rights and distribution. The film will be released on video on October 3, 2006. Vision was scheduled to screen the movie at Cannes. Image is a licensee, producer and distributor of home entertainment programming with about 3,000 DVD titles and 200 CD titles.

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