Champs & Chumps ..........Stock Market Winners & Losers

Tuesday, October 31, 2006

Stock Market Chumps..........10-31-06

Avanir Pharmaceuticals (AVNR)

Last Trade:4.04
Trade Time:1:17PM ET
Change:Down 3.36 (45.42%)
Shares of Avanir Pharmaceutical Corp. dropped to a new 52-week low Tuesday after the drug developer received an "approvable letter" from the Food and Drug Administration rather than an outright approval for Zenvia to treat involuntary emotional expression disorder.

Avanir shares fell $3.05, or 41.2 percent, to $4.33 in morning trading on the Nasdaq at nine times their average volume. Shares, which hit a low of $3.96 in earlier trading, previously traded between $5.31 and $18.14 over the past 52 weeks.

The FDA and the company still have to agree on what additional safety and effectiveness data is needed for full approval. An approvable letter tells a company that their marketing application for a drug is in order but that additional requirements must be met.

The company said it cannot comment on what the FDA requires for a full approval until it meets with the agency, nor can it guarantee that it will continue developing the drug after the meeting.

Avanir hopes to get Zenvia, previously known as Neurodex, approved to treat involuntary emotional expression disorder in patients with neurologic diseases and brain injuries. The disorder is characterized by sudden and unpredictable episodes of crying, laughing, or other emotional displays.

ENGlobal Corp. (ENG)

Last Trade:5.89
Trade Time:1:13PM ET
Change:Down 1.56 (20.94%)

ENGlobal Corporation, a leading provider of engineering services, today reported that its earnings for the third quarter ended September 30, 2006 will reflect an after tax charge of approximately $3.5 million primarily resulting from productivity delays and cost overruns on two fixed price projects in the Company's engineering segment. While the majority of the Company's business units are experiencing positive performance, ENGlobal will report a loss for the quarter after consolidating this charge with its other operations.

ENGlobal plans to pursue efforts to mitigate the level of the cost overruns on these projects, some of which may be recoverable. In addition, the Company plans to modify its contracting strategy, and limit the terms under which fixed price projects will be performed in the future. The Company's engineering segment does not currently have other significant fixed price work under contract.

This charge is based on costs expected to be incurred through the completion of the contracts and includes a variety of assumptions. The Company expects to refine its analysis through project completion as the impact of economic and operational conditions, such as costs of labor and materials, are determined. There will be no impact on prior quarters and the Company believes that the bulk of the financial impact will be captured in its third quarter. The projects are expected to be completed on or before March 31, 2007.

Technitrol Inc. (TNL)
Last Trade:25.60
Trade Time:1:14PM ET
Change:Down 4.73 (15.60%)
Technitrol Inc., which makes magnetic components used in electronics, on Tuesday said it declared a regular quarterly dividend of 8.75 cents.

The company will pay the dividend on Jan. 19, 2007 to shareholders of record Jan. 5

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