Stock Price

Legg Mason Inc. strongly denied yesterday a published report that it is considering taking itself private and spinning off some of its many subsidiaries. The question about going private comes as the Baltimore money manager's stock price has been weighed down by poor performance of its flagship mutual funds and soured investments in mortgage-backed debt by some of its money-market funds. Citing people familiar with the situation, the New York Post reported yesterday that Legg has been weighing a move involving one or more private equity investors, including Kohlberg Kravis Roberts Co., to buy the company and spin off its independently run fund units, such as equity manager ClearBridge Advisors and Permal, which invests in hedge funds on behalf of clients.

The federal government has imposed a two-week ban on short-selling of stocks in nearly 800 financial institutions, including several in Maryland, to improve investor confidence amid continued turmoil in the stock market. The Securities and Exchange Commission said yesterday that the temporary crackdown on short-selling - in which investors make money by betting that the price of a stock will fall - has contributed to drastic declines in the market value of financial institutions and that it wanted to prevent further erosion.

Julia B. Anderson was impressed with the high-tech presentation Under Armour put on yesterday during its annual meeting at the ESPN Zone sports bar and restaurant - complete with big-screen televisions and snippets from its various marketing campaigns. But what Anderson isn't so impressed with is the company's stock price. And yesterday, Anderson told Under Armour executives just that. She bought the stock three years ago when it priced at more than $50. Yesterday it closed at $35. "Is there anything you can say to make me feel better?"

Investing can be counterintuitive. How on earth can a stock price go down after higher profits are announced? Russell Brenza of Naperville, Ill., gave two examples: "Can you explain why in a news story about a company's increase in profits or net income, it often also states the stock dropped? "In a recent business section, it was reported `Net income at Saks surges 84 percent,' but yet `Saks stock slipped 25 cents.' In the same edition, `Costco Wholesale Corp. said second-quarter profit rose 31 percent,' but the closing sentence stated: `Shares of Costco dropped $1.56.

I am 24 and have been saving in my 401(k) for about a year, but I find mutual funds boring. So I started paying attention to stocks. I discovered that I was good at spotting those that would do well. For a while, I just made a mental note of stocks I liked, but when I saw them go up I decided to buy my first stock. It was Garmin, which makes navigation devices for cars. I bought it for $70 and I made money immediately. Now I'm wondering how to decide when it's time to sell. Are there some rules of thumb?

Research In Motion Ltd. Shares rose $15.47 to $235.99 after Goldman, Sachs & Co. boosted its subscriber estimates for the BlackBerry e-mail device and said the stock price didn't reflect the firm's growth potential.

Under Armour shares soared nearly 11 percent yesterday to reach an all-time high after the company raised its financial outlook for the year. The stock rose as high as $64.75 during the day before it finally settled to close at $61.24. The company said its improved forecast, which it announced during a scheduled release of second quarter earnings, came after a better-than-expected first half of the year as sales increased across the business in the women's, men's and youth categories.

NEW YORK -- A federal judge set a $500,000 bond yesterday for a former executive at a Maryland technology company who has been charged with manipulating stock option grants to allow top employees to lock in unlawful stock gains and exaggerated bonuses. Flanked by two attorneys and watched by her husband in the courtroom gallery, Carole D. Argo, 46, a former chief financial officer, president and chief operating officer of SafeNet Inc. in Belcamp, in Harford County, entered a not guilty plea in U.S. District Court in Manhattan on charges of securities fraud and conspiracy.

Carole D. Argo, a former top executive at Harford County technology company SafeNet Inc., was indicted yesterday on charges of rigging stock-option grants in a six-year scheme that netted her and other employees millions of dollars in improper stock gains and inflated bonuses. Argo, 46, is expected to be arraigned today in Manhattan federal court on charges of securities fraud and conspiracy. If convicted, she faces a maximum of 25 years in prison and fines of at least $250,000, according to the U.S. Attorney's Office for the Southern District of New York.

Some of Legg Mason Inc.'s flagship money managers including the famous stock picker Bill Miller continue to founder, but the company's hedge-fund operation has been red hot. That diversified business model helped the Baltimore-based investment empire post net income yesterday of $191 million, or $1.32 per share, for the first fiscal quarter, which ended June 30. Those results were 22 percent higher than for the quarter a year ago. "We continue to...