ECONOMIC INDICATORS
Down: Attendance at Disney-land and Disney California Ad-venture theme parks, which slipped 4% from April 4 through July 3 from a year earlier.
TECHNOLOGY
An analyst cut his estimates for Lake Forest’s Western Digital Corp., the top maker of disk drives for computers, servers and consumer electronics. Ben Reitzes of Barclays Capital, part of Barclays Bank PLC, lowered his price target for Western Digital’s shares to $29, down from a previous estimate of $32. Western Digital’s shares were trading at $25 last week with a $5.7 billion market value. He also slashed his profit estimates by more than $50 million for the 12 months through June 2011 to $851 million.
Irvine-based chipmaker Broadcom Corp. saw its shares slide last week after analysts projected slowing chip sales ahead. Robert W. Baird & Co. analyst Tristan Gerra wrote in a research note that demand for communications chips made by Broadcom and others is slowing (see story, page 5).
HEALTHCARE
Irvine-based Sun Healthcare Group Inc. priced a stock offering that could net it $195 million to $225 million. The operator of nursing homes, assisted living facilities and rehabilitation centers priced 26.7 million shares at $7.75 apiece. Underwriters have 30 days to buy up to 4 million additional shares. Proceeds from the offering, set to wrap up this week, will be used to repay Sun debt as part of a step leading up to its planned break into two publicly traded companies. The breakup is set to create Sabra Health Care REIT Inc., an owner of healthcare real estate, and a nursing home company that will retain the Sun name (see story, page 1).
Investors showed faith in Foothill Ranch nursing home company Skilled Healthcare Inc. after it filed a motion for a mistrial and new trial in a potentially crippling lawsuit it lost in July. Last month, a jury found Skilled liable for $677 million in damages for alleged mismanagement of 22 California nursing facilities. The company contends a juror lied on a sworn questionnaire about connections to one of the plaintiffs and to one of Skilled’s facilities named in the suit. Settlement talks are ongoing, according to Skilled.
Spectrum Pharmaceuticals Inc., an Irvine drug maker, reported a smaller second-quarter loss. Spectrum, which makes cancer drugs, saw a $9.7 million net loss in the quarter, which was narrowed by more than $20 million from a year earlier. Analysts expected Spectrum to lose $8.3 million in the quarter. The drug maker’s revenue grew to $12.3 million, up 52% and surpassing Wall Street’s expectation of $11.4 million.
REAL ESTATE
An improving commercial real estate market helped Santa Ana-based Grubb & Ellis Co. report a narrowed second-quarter loss, but the red ink still was more than analysts were expecting. Grubb & Ellis, which brokers sales and leases and runs real estate investment funds, reported a loss of $20.4 million, versus $32.8 million a year earlier. The latest results included $7.4 million in charges. Analysts on average were looking for a loss of $11.8 million after charges.
APPAREL
Huntington Beach-based Quiksilver Inc. completed an exchange of shares for $140 million in debt in a move that stands to bolster the clothing maker’s once crippling balance sheet. Quiksilver exchanged 31.1 million shares worth about $140 million for the debt, which was held by with New York-based Rhone Group LLC. The debt stems from a deal struck with Rhone last year that helped Quiksilver finance a U.S. line of credit and consolidate its European debt. After retiring the debt, Quiksilver expects to rework its credit lines with better terms and strike a deal to pay off $25 million in remaining debt owed to Rhone.
FINANCE
First Vietnamese American Bank in Westminster, which has been struggling with bad loans and regulatory scrutiny, is in the process of being acquired by a Philippines company. The California Department of Financial Institutions late last month approved the sale of First Vietnamese to Charles and Michael Lhuillier, brothers who run one of the largest pawn shop and jewelry operations in the Philippines.
OTHER NEWS
The chief executive of Costa Mesa-based El Pollo Loco Inc. is leaving to join Colorado’s Red Robin Gourmet Burgers Inc. as the Mexican restaurant chain continues to struggle with falling sales. Stephen E. Carley, who’s led El Pollo Loco since 2001 and has appeared in many of the chain’s commercials, is set to join Red Robin as chief executive in September. Steve Sather, El Pollo Loco’s senior vice president of operations, is set to become acting chief executive upon Carley’s departure and appears to be in line for the job permanently.
Seattle-based Recreational Equipment Inc., which runs a chain of camping and outdoor sports stores, is moving a store from Santa Ana into expanded space at The Market Place in Tustin. The retailer is set to open its 33,500-square-foot store in the fall. It is taking the former Linens ’N Things space next to Best Buy.
