JR Index down slightly

Journal Record, The (Oklahoma City), Jan 29, 2008 by Margot Crabtree

The Journal Record Index slipped slightly last week, off 0.91 points, or 0.09 percent, and closing at 1,022.86. However, advancing issues edged past declining issues at a 25-to-21 count.

OGE Energy was down $2.61, or 7.65 percent last week after the company decided to delay the initial public offering (IPO) of its OGE Enogex Partners LP. OGE said the IPO was halted because of market volatility, and that it expects to move forward with the offering when the timing is right. The offering of 7.5 million shares was expected to price between $18 and $20 per share and earn about $132.7 million after fees and expenses. OGE closed at $31.50 and was the top dollar loser.

Shares of Bronco romped higher after news that Allis-Chalmers plans to acquire Bronco for $280 million in cash and $157.8 million in stock. The purchase price of $16.33 per share represents a 22- percent premium to Bronco's closing price on the day the acquisition was announced. "Although the land drilling business has seen recent weakness with margins declining from the 2006 peaks, they are still very attractive with average return on investment capital for Bronco expected to be close to 47 percent for 2007, said Calyon Securities analyst Mark Urness. Bronco gained $2.28, or 16.99 percent, and was the top percentage gainer. Bronco closed at $15.70.

In a hoped-for but surprise move, the Federal Reserve slashed interest rates by three-quarters of a percentage point last week, the largest one-time cut in over 23 years. It was the first time since 2001 that the Fed had intervened with a cut between meetings. Before the cut, stocks worldwide had been in freefall, responding to the U.S. market's continued instability. Despite moderating, stocks were volatile and ended mixed, unsettled by stories of hedge fund instability on the day our trading session ended Friday.