BEFORE THE BELL -2: US HOT STOCKS TO WATCH

11th Jun 2010 13:43

Among the companies whose shares are expected to actively trade in Friday's session are Wendy's/Arby's Group Inc. (WEN), ArcSight Inc. (ARST) and Dell Inc. (DELL). Billionaire Nelson Peltz disclosed Thursday that a third party has made an oral expression of interest in a potential acquisition involving the fast food restaurant chain operator Wendy's/Arby's. The type of transaction wasn't described in the filing with the Securities and Exchange Commission. But Peltz, whose hedge fund owns nearly a quarter of the company, said he expects "to contact and discuss a possible transaction involving the company with potential debt and/or equity financing sources, other shareholders of the company and other interested third parties." Shares jumped 11% to $4.84 in premarket trading. ArcSight Inc.'s (ARST) fiscal fourth-quarter earnings soared on strong sales that beat its optimistic outlook as the compliance and security software company continued to benefit from increased awareness of cybersecurity. Its shares climbed 12% to $22.22 in premarket trading as it also gave an upbeat outlook for the current fiscal quarter and year. Dell set aside $100 million as part of a potential legal settlement with U.S. regulators, a move that prompted the computer maker to lower its fiscal first-quarter earnings by five cents a share. In a regulatory filing, Round Rock, Texas-based Dell said it had revised its earnings after discussions with the U.S. Securities and Exchange Commission prompted it to put the funds aside toward a potential settlement over a long-running problem regarding the company's reporting practices. Shares fell 1.8% to $12.83 in after-hours trading. BP PLC (BP) shares were leading London's blue-chip index and were rising in New York premarket trading as investors regained some confidence in the oil major's ability to cope with the political and financial fallout from the massive oil spill in the Gulf of Mexico. The American depositary shares climbed 4.7% to $34.32. Bristol-Myers Squibb Co. (BMY) and Pfizer Inc. (PFE) said they stopped a clinical trial early because the data so far suggest an experimental drug for irregular heart rhythm was superior to aspirin. The drug, apixaban, is designed to prevent clotting of the blood. The New York-based drug makers studied apixaban in people with atrial fibrillation, a disease involving irregular heartbeat that increases the risk for stroke. Meanwhile, Bristol-Myers was upgraded by analysts at both Citigroup and Leerink Swann, which both highlighted the company's positive cancer-news this week, and potential for more catalysts on the way. Bristol-Myers shares rose 2.9% to $25.36 in premarket trading while Pfizer added 2.3% to $15.25. Buckeye Partners LP (BPL) agreed to acquire Buckeye GP Holdings LP (BGH), which owns the general partner of Buckeye Partners, in an all-equity deal valued at $1.16 million. The deal will reduce Buckeye Partners' quarterly distribution payouts and both companies' capital costs. Buckeye Partners is a master limited partnership engaged in refined-products transmission, gas storage and wholesale fuel distribution. Under the agreement, Buckeye GP holders will receive 0.705 of a Buckeye Partner unit, valuing Buckeye GP at $41.01 a unit, a 32% premium to Thursday's closing price. About 20 million units will be issued as part of the deal, which it expects will dilute distributable cash flow per unit by 6% to 7% next year. Buckeye GP shares rose 19% to $37 in premarket trading while Buckeye Partners slipped 2.9% to $56.50. Repros Therapeutics Inc. (RPRX) said the Food and Drug Administration has lifted its clinical hold on Proellex, its uterine fibroids treatment, and will allow the company to run a single study under new partial clinical hold status. The pharmaceutical company, which focuses on reproductive issues, had been plagued by delays and liquidity concerns, but said it had the capital to do the study. Shares leapt 37% to 66 cents in premarket trading. BlackBerry maker Research In Motion Ltd. (RIMM) will pay Motorola Inc. (MOT) an undisclosed amount and ongoing royalties as the two cellphone makers reached agreement to halt all litigation between each other. Shares of beaten-down Motorola rose 2.3% to $7 in premarket trading while Research in Motion added 0.8% to $59.60. French dairy and beverages company Groupe Danone SA (BN.FR) said it will acquire Medical Nutrition USA Inc. (MDNU), or MNI, for about $62.3 million, and plans integrate it into its medical nutrition division. The offer was for $4 a share, or a 44% premium to Thursday's closing price. Shares rose 41% to $3.91 in premarket trading. Spanish banking giant Banco Santander SA (STD) expects to have a similar net profit this year as in 2009, despite ongoing economic uncertainty and weakness in Spain, Chairman Emilio Botin said Friday during the bank's annual general meeting. Santander, the largest bank in the euro zone by market value, in 2009 reported net profit of EUR8.894 billion ($10.78 billion). Shares climbed 4.8% to $10.39 in premarket action. National Semiconductor Corp. (NSM) swung to a fiscal fourth-quarter profit following $116.1 million in prior-year charges while demand increased for analog products from the wireless handset and industrial markets. Results easily topped Wall Street's expectations, helping shares rise 1.3% to $13.71 in premarket trading. Finisar Corp. (FNSR) swung to a fiscal fourth-quarter profit on better-than-expected revenue growth and improved margins, while year-earlier results were stung by write-downs. The fiber-optic equipment maker also gave a strong sales view for the current quarter. Shares rose 1.8% in after-hours trading to $14.50. Clothing retailer Express Inc.'s (EXPR) fiscal first-quarter profit more than quadrupled, helped by surging sales and margins. Shares rose 2.1% to $14.31 after-hours. Other Stocks In Focus: Life Quotes Inc.'s (QUOT) chief executive's company offered to buy out the rest of the website operator at a 44% premium to its closing value Thursday. CEO Robert S. Bland's $4 a share offer values the company at about $27 million. NaviSite Inc. (NAVI) swung to a profit in its fiscal third quarter, snapping a long streak in the red as the Internet-backbone company benefited from selling assets. Results fell short of analysts' expectations. Progress Software Corp. (PRGS) said it would trim its global work force by 7% to 9%, its second wave of cuts since December, as the business-software maker continues to consolidate its offices. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires June 11, 2010 08:43 ET (12:43 GMT)