US HOT STOCKS: Cytomedix, DreamWorks, Fannie, Freddie -2-

16th Jun 2010 15:35

Blockbuster Inc. (BBI, $0.29, +$0.04, +15.96%) 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, $6.61, +$0.48, +7.83%) 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. American depositary shares of BP Plc (BP, $29.85, -$1.55, -4.94%) fell after President Barack Obama blasted the company in a nationally televised address on Tuesday evening, calling for the oil giant to set up an independently administered escrow account to pay claims from the Gulf of Mexico oil spill. Obama also talked of the need for more renewable energy. The president is also scheduled to meet with BP chairman Carl-Henric Svanberg on Wednesday morning and is expected to discuss the company's dividend payments as well. Cytomedix Inc. (GTF, $0.67, +$0.13, +23.93%) reported "positive" data from a study evaluating one of its treatents 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." Software provider Dot Hill Systems Corp. (HILL, $1.18, -$0.03, -2.48%) announced a restructuring plan, including a 10% workforce reduction and wage cuts, that it said would enable the company to achieve break-even results by the fourth quarter. Goldman Sachs downgraded its stock-investment rating on DreamWorks Animation SKG Inc. (DWA, $28.11, -$1.08, -3.70%) 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, $0.53, -$0.40, -42.67%) and Freddie Mac (FRE, $0.67, -$0.55, -44.91%) 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, $11.49, -$0.61, -5.04%) said its planned sale of at least 8 million shares has been priced at a 5% discount to Tuesday's close. 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, $18.55, -$1.04, -5.31%) and Bally Technologies Inc. (BYI, $38.82, -$2.00, -4.90%) 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. Iridium Communications Inc. (IRDM, $9.16, -$0.19, -2.03%) has selected Space Exploration Technologies Corp. to launch its next-generation satellites into space during the middle of the decade as the world's largest satellite communication provider updates its current constellation. JDA Software Group Inc. (JDAS, $23.92, -$3.78, -13.65%) said its i2 Technologies unit lost a software licensing dispute against Dillard's Inc. (DDS, $27.38, -$0.20, -0.73%) and was ordered to pay $246 million in damages. (MORE TO FOLLOW) Dow Jones Newswires June 16, 2010 10:35 ET (14:35 GMT)