BEFORE THE BELL -2: US HOT STOCKS TO WATCH

6th Jul 2010 13:33

Among the companies whose shares are expected to actively trading in Tuesday's session are Oshkosh Corp. (OSK), BP PLC (BP) and Taseko Mines Ltd. (TGB). Oshkosh won contracts worth $690.5 million to supply the Army with tactical trucks and trailers, the Defense Department said Friday. The larger award, worth $584.9 million, is for 1,274 new heavy expanded mobility tactical trucks--large vehicles designed for heavy transport--and 452 refurbished ones. It also includes the sale of 98 palletized loading system trailers. Shares rose 2.1% at $30.63 after hours. BP killed speculation Tuesday that it was looking for a white knight investor to take a large equity stake in the company by saying it won't issue new equity to raise money to cover the costs of the oil spill in the Gulf of Mexico. BP would welcome it if any existing shareholders or new investors want to expand their holding in the company by buying already-listed shares, but no new shares will be listed, said a company spokeswoman. American depositary shares rose 5.8% to $31.06 in premarket trading. The approval process for Taseko Mines' gold-copper mine in central British Columbia is likely to be "messy" after a Canadian review panel concluded there would be a significant adverse environmental impact. The review panel concluded that the project would destroy Fish Lake, home to about 90,000 rainbow trout, replacing it with a much smaller man-made lake. Taseko shares slumped 11% to $3.50 in premarket trading. Cliffs Natural Resources Inc. (CLF) said Spider Resources Inc. (SDERF, SPID.RQ) broke off its agreement to merge with KWG Resources Inc. (KWGBF, KWG.V) and accepted Cliffs' offer to take over the company. All three companies are partners in a chromite project in Northern Ontario. Chromite is used to make chromium, which is in turn used in the production of stainless steel. Earlier this month, Cliffs raised its bid on Spider 27% to about C$109 million (US$102.6 million), which Spider determined trumped the terms it agreed to when it entered a binding letter of intent to merge with KWG. Cliffs shares added 3.4% to $48.50 in premarket trading. Global chip sales rose 4.5% in May from the prior month, topping April's record for monthly sales, and remained up sharply from last year's downtrodden levels, according to the Semiconductor Industry Association. May sales totaled $24.7 billion, up 48% from a year earlier, when sales were pummeled by lagging consumer demand amid the recession. Chipmakers were among the leading gainers in premarket trading, with Micron Technology Inc. (MU) up 4% to $8.55, Advanced Micro Devices Inc. (AMD) up 2.9% to $7.38 and Intel Corp. (INTC) up 1.6% to $19.50. Fidelity National Information Services Inc. (FIS) launched its planned $2.5 billion stock-buyback effort and unveiled a $1.2 billion note sale to help fund it. The provider of banking and payments technology will sell seven- and 10-year notes. The note sale is part of a financing package for the stock-tender offer that includes loans. FIS in May announced the $2.5 billion buyback plan after a potential $10 billion leverage buyout fell through. The company said Tuesday that modified Dutch auction will have a price range of $29 to $31 a share. Shares rose 3.8% to $27.42 in premarket trading. JA Solar Holdings Co. (JASO) said it has secured an agreement to be a supplier for silicon wafer maker MEMC Electronic Materials Inc. (WFR) through 2012. American depositary shares of the Chinese solar-cell maker rose 3.2% to $5.24 in premarket action. Analysts at J.P. Morgan upgraded Goldman Sachs Group Inc. (GS) to overweight from neutral saying the investment bank's risk management "could act as a benchmark" for its peers. Shares of the bank rose 2% to $133.70 in premarket trading. Watch List: Beacon Power Corp. (BCON) announced Tuesday it has agreed to sell $25 million of shares--slightly less than half the company's current market value--to Chicago-based Aspire Capital Partners. The provider of electric grid frequency regulation services hasn't been profitable, but losses have narrowed in recent quarters as revenue has grown sharply. Bebe Stores Inc. (BEBE) said it plans to shutter its unprofitable PH8 chain as the women's clothing retailer looks to improve the results at its namesake operations and develop its 2b bebe concept. The company also announced fiscal fourth-quarter, same-store sales will likely come in at the low end of its prior forecast as bebe also disclosed plans to pay a $1 a share special dividend in the wake of it receiving payment for auction-rate securities previously tied up with UBS AG (UBS). LCA-Vision Inc. (LCAV) announced the number of laser-vision corrections it did during the second quarter fell 15%, a smaller decline than prior periods but still showing consumers aren't spending on such discretionary items. A unit of Par Pharmaceutical Cos. (PRX) said the Food and Drug Administration approved Zuplenz, an orally dissolving film used to prevent nausea and vomiting caused by surgery, chemotherapy and radiation treatments. Zuplenz is the first such film approved by the FDA as a prescription medication. Patterson-UTI Energy Inc. (PTEN) has agreed to buy pressure-pumping and wireline assets from Key Energy Services Inc. (KEG) for $237.7 million, expanding its ability to service shale gas operators. Under the transaction, Patterson is acquiring equipment in the Barnett Shale, Eagle Ford Shale and Permian Basin regions, more than doubling the total horsepower of its pressure pumping gear. It's also picking up a wireline business includes 26 wireline units. Superconductor Technologies Inc. (SCON), which makes high-temperature superconducting materials, plans to sell 10 million shares to raise funds for working capital and general corporate purposes. The sale will increase the number of outstanding shares by at least 45%. Hard-drive maker Seagate Technology Inc. (STX) said its change in place of incorporation to Ireland from the Cayman Islands would become effective Saturday. Walgreen Co. (WAG) said its June same-store sales rose 2%, a reversal from two straight months of declines, as front-end discretionary sales improved. Overall, sales jumped 8.4% to $5.67 billion for the drug-store operator, increased by three percentage points by Duane Reade stores the company acquired this year. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires July 06, 2010 08:33 ET (12:33 GMT)