BEFORE THE BELL-2: US HOT STOCKS TO WATCH

21st Jun 2010 13:40

Among the companies expected to actively trade in Monday's session are Anadarko Petroleum Corp. (APC), BP PLC (BP, BP.LN) and American Italian Pasta Co. (AIPC). Anadarko late Friday called the oil spill in the Gulf of Mexico "preventable and the direct result of BP's reckless decisions and actions," allegations that BP immediately rejected. The public sparring came as Moody's Investors Service downgraded the U.S. oil producer's ratings to junk territory, citing uncertainty about its possible 25% share of the cleanup costs and financial liabilities resulting from the spill. Anadarko's shares lost 0.5% to $42.38 in pre-market trading. BP dropped in London Monday as the oil giant said costs of cleaning up the oil spill reached $2 billion, with reports saying it's looking to raise $50 billion through asset sales and borrowing. The drop also comes after a report showing an internal, worst-case scenario that the well is leaking 100,000 barrels a day. Its American depositary shares were off 4% to $30.45 in pre-market trading. Ralcorp Holdings Inc. (RAH) agreed to buy American Italian Pasta for $1.2 billion and has closed on two small Canadian-based cracker makers. Ralcorp's shares were inactive pre-market while American Italian Pasta's shares were up 26% to $52.59. EF Johnson Technologies Inc. (EFJI) said it has agreed to a new price of about $40.2 million in its buyout by Francisco Partners, a 43% hike from their previously agreed deal. EF Johnson, which makes portable radios and other communications gear for the military and public-safety workers, said it will now be bought for $1.50 a share, a 46% premium to Friday's close of $1.03. Shares surged 42% in pre-market trading to $1.46. Biopharmaceutical company Aeterna Zentaris Inc. (AEZS, AEZ.T) announced "positive" study data for its treatment used to stimulate the secretion of growth hormones. Shares rose 7.6% in pre-market action to $1.27. Watch List: AstraZeneca PLC (AZN) said it would settle a class-action suit about its pricing for wholesale drugs for $103 million although it believes its pricing and marketing practices were lawful. Barnes & Noble Inc. (BKS) unveiled a scaled-down version of its Nook e-reader with wireless-only Internet capacity. The device joins the growing field of similar products at a retail price of $149. CNB Financial Corp. (CCNE) said it would sell 3.37 million shares at $10.25 each, a steep 13% discount to Friday's closing price. The bank holding company said it would use the proceeds for general purposes, including expanding its business and investments in its subsidiary. Continental Airlines Inc. (CAL) said Monday that domestic bookings are running below last year's level and that currency swings will result in the airline booking a $10 million foreign exchange loss in the second quarter. Cypress Bioscience Inc. (CYPB) entered an exclusive license to develop and commercialize BioLineRx Ltd.'s (BLRX.TV) treatment candidate for schizophrenia in North America as the antipsychotic proceeds toward U.S. regulatory approval. Private-equity giant Cerberus Capital Management LP plans to sell $455 million of seven-year notes to help fund its buyout of military contractor DynCorp International Inc. (DCP). DynCorp will pick up the obligations of the notes when the buyout is completed. Online-travel company Expedia Inc. (EXPE) said it will add 130 new jobs to its Las Vegas operations by the end of the month, bringing the total there to 500 employees. The company is taking advantage of incentives under the federal Hiring Incentives to Restore Employment Act, designed to create or restore jobs for unemployed individuals. PPL Corp. (PPL) said it has arranged a "significant portion" of its financing for its $7.6 billion acquisition of E.ON AG's (EOAN.XE) U.S. operations. The utility company said it will sell at least 90 million shares and a minimum $1 billion of so-called equity unit securities to help fund the deal, announced in April. Science informatics software company Symyx Technologies Inc. (SMMX) said its board has decided a $200 million buyout offer from a group led by Certara Corp. is not superior to the $183 million deal it has in place with Accelrys Inc. (ACCL). Tongjitang Chinese Medicines Co. (TCM), a Chinese specialty pharmaceutical company, said its first-quarter revenue increased 26% in local currency as it expanded into community hospitals, though its loss widened. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires June 21, 2010 08:40 ET (12:40 GMT)