US HOT STOCKS: BP, Dreamworks, Fannie Mae, JDA Software -2-

16th Jun 2010 21:47

Blockbuster Inc. (BBI, $0.28, +$0.03, +12.00%) shares rose after the movie-rental chain's chief executive said on CNBC that the company is doing its best to meet financial obligations. Last month, the CEO said Blockbuster had made headway in cost reductions and that he expected the company to have sufficient liquidity for the rest of the year. Investors have worried about bankruptcy, but the CEO made no comment about that on CNBC. Boston Private Financial Holdings Inc. (BPFH, $6.54, +$0.41, +6.69%) released terms for its planned sale of $25 million of stock, saying it will sell 4.1 million shares just 3 cents below Tuesday's closing price. The initial public offering market returned to the doldrums Wednesday with a deal from tech company BroadSoft Inc. (BSFT, $8.30, -$0.70, -7.78%) pricing low and sinking even lower at the open. American depositary shares of BP Plc (BP, $31.85, +$0.45, +1.43%) climbed Wednesday afternoon after the oil giant said it won't issue further dividends this year and confirmed an agreement to set aside $20 billion to help pay for claims as a result of the Gulf oil disaster. Cytomedix Inc. (GTF, $0.62, +$0.08, +14.81%) reported "positive" data from a study evaluating one of its treatments for advanced, chronic wounds. The tiny company which develops regenerative therapies for wound care, inflammation and angiogenesis said the study showed that its AutoloGel System can be used to restart the healing process in complex chronic wounds, "even wounds recalcitrant to other treatments." Goldman Sachs downgraded its stock-investment rating on DreamWorks Animation SKG Inc. (DWA, $28.24, -$0.95, -3.25%) to neutral from buy, saying it believes the film studio has gone too far in trying to maximize profit from its Shrek franchise. "We believe management should consider re-evaluating its less-profitable ancillary revenue streams in order to preserve some scarcity value for characters and to allow audiences a chance to miss characters," the firm said. Fannie Mae (FNM, $0.56, -$0.36, -39.15%) and Freddie Mac (FRE, $0.75, -$0.47, -38.28%) said they intend to delist their stock from the New York Stock Exchange as the government-backed mortgage companies' shares continue to struggle amid billions in losses. Specialty finance company Fifth Street Finance Corp. (FSC, $11.50, -$0.60, -4.96%) said its planned sale of at least 8 million shares has been priced at a 5% discount to Tuesday's close. Correctional facilities operator Geo Group Inc. (GEO, $21.38, +$0.98, +4.80%) shares climbed after the company won a federal prison contract for the Rivers Correctional Institution in North Carolina. RBC said Geo Group had this contract before, but investors had been worried it could lose the deal. While 90% of contracts historically have been retained, there have been some contracts that went to other companies over the past year. Next year is "unlikely to be the year" for the slots industry, Goldman Sachs said, downgrading the sector view to cautious. The firm also cut International Game Technology (IGT, $18.54, -$1.05, -5.36%) and Bally Technologies Inc. (BYI, $38.48, -$2.34, -5.73%) to sell from neutral. Sentiment has gotten too bullish on the sector, the firm wrote, predicting there won't be a recovery until 2012, "when, theoretically, states such as Illinois, Ohio and Maryland should be rolling out. Even the pace of these state rollouts may be slower than expected or delayed," the firm wrote. JDA Software Group Inc. (JDAS, $22.29, -$5.41, -19.53%) said its i2 Technologies unit lost a software licensing dispute against Dillard's Inc. (DDS, $27.40, -$0.18, -0.65%) and was ordered to pay $246 million in damages. Sterne Agee raised its rating on Kenneth Cole Productions Inc. (KCP, $12.98, +$0.68, +5.53%) to buy from neutral, saying the clothing and apparel designer is "finally making tangible progress in order to become, as the company puts it, 'the quintessential metropolitan lifestyle brand for modern men and women.'" CL King cut its rating on polymer products maker Myers Industries Inc. (MYE, $7.95, -$0.70, -8.09%) to neutral from accumulate on the potential for a weaker-than-expected margin and per-share earnings outlook. "We believe the company may face some cost under-absorption headwinds due to rising raw material prices (resins) in FY10, while a very gradual demand recovery may limit an increase in utilization rates of company manufacturing plants in the near term," the firm said. The Securities and Exchange Commission is investigating whether generic-drug maker Mylan Inc. (MYL, $17.90, -$0.49, -2.66%) disclosed confidential information about its coming earnings to a group of handpicked investors, allowing them to snap up the shares before a big rally, people familiar with the matter told The Wall Street Journal. (MORE TO FOLLOW) Dow Jones Newswires June 16, 2010 16:47 ET (20:47 GMT)