Star Stocks winner Bradley suffers reversal of fortune

Bradley Pharmaceuticals Inc., which soared 1,375.6 percent last year and was the top performer in the Star-Bulletin's Star Stars contest with a six-month gain of 302.9 percent, came crashing back to Earth the last two days.

The Fairfield, N.J.-based maker of prescription and over-the-counter drugs tumbled a combined 37.7 percent Thursday and Friday after reporting Wednesday that fourth-quarter profit fell because of higher costs. The company, however, did raise its earnings forecast for 2002 on expected higher sales.

Last quarter, net income fell 12 percent to $1.82 million, or 17 cents a share, from $2.05 million, or 26 cents, in the year-earlier period. Sales rose 12 percent to $7.85 million from $7 million.

The stock which closed 2001 at $20.75 and moved as high as $21.80 on Feb. 13, fell $7.95 over the last two days and closed yesterday at $13.15. Bradley's shares are now down 36.6 percent this year.

Tesoro's overallotment option gets exercised

Tesoro Petroleum Corp., which operates Hawaii's largest refinery as well as four others on the mainland, said yesterday that the underwriters of the Tesoro's 20 million-share offering have exercised the full amount of their option to purchase an additional 3 million shares.

The exercise of the overallotment will increase Tesoro's outstanding shares to more than 64 million shares. Total net proceeds from the offering of 23 million shares are approximately $246 million. The offering is expected to close on March 6.

Tesoro plans to use the proceeds from this offering to partially fund the previously announced acquisition of the Golden Eagle refinery and network of 70 retail outlets from Valero Energy Corp.

Lehman Brothers Inc. served as the lead manager and Goldman, Sachs & Co. and Friedman, Billings, Ramsey & Co. served as the co-managers.

Tesoro's stock closed up 35 cents to $12.05 yesterday on the New York Stock Exchange. Its shares are down 8 percent this year.

State Farm loses $5 billion in '01 for worst loss ever

BLOOMINGTON, Ill. >> Hit by mounting claims and drastically reduced capital gains, State Farm Insurance Co. reported yesterday a net loss in 2001 of $5 billion.

The Bloomington-based insurer, which has offices in Hawaii, said the loss was the largest in the company's 80-year history and follows a year in which it earned $400 million.

The privately held company also said its $2.8 billion stock market loss for the year contributed to a decline of $5.7 billion to the net worth of the parent company, State Farm Mutual.

State Farm's revenues from premiums rose from $37.6 billion in 2000 to $40 billion last year. But those premiums could not keep pace with the amount of money being paid out in claims, as reflected in an underwriting loss of $5.3 billion. And after seeing $3.4 billion in capital gains in 2000, the company reported capital gains of just $300 million last year.

Texas Instruments says quarterly revenue to be flat

DALLAS >> Texas Instruments said yesterday that sales in the first quarter will be on par with the sluggish fourth quarter, in which the semiconductor giant lost $116 million.

Company officials have said they hope to break even in the first quarter.

Texas Instruments said in a shareholder proxy filed with the U.S. Securities and Exchange Commission that 2001 "was a difficult year," but that it is coming out of a downturn in the semiconductor industry as a stronger company.

Inventory was reduced to a 3-year low of 50 days, compared to 71 at the end of 2000, and accounts receivable were also reduced, the company said.

Texas Instruments' stock rose $2.15 to $31.50 yesterday on the New York Stock Exchange.