US HOT STOCKS: Expeditors Intl, Lincoln Natl, Motorola -2-

14th Jul 2010 21:54

Benihana Inc. (BNHN, $6.63, +$0.60, +9.97%) (BNHNA, $6.16, +$0.74, +13.55%) said its board will consider several options, including a possible sale of the largest U.S. chain of Japanese theme and sushi restaurants, to maximize shareholder value and quell investor discontent. Cabot Microelectronics Corp. (CCMP, $34.43, -$2.22, -6.06%), which makes polishing compounds and pads used in the semiconductor manufacturing process, warned that litigation expenses had significantly driven up its fiscal third-quarter costs. It also said it expects to report $101.7 million in revenue, with Wall Street looking for $102 million. Credit Suisse started coverage on Codexis Inc. (CDXS, $9.70, +$1.26, +14.93%) with a stock-investment rating of outperform, saying the biosciences company's gene shuffling platform technology and blue chip customers "creates the right condition for the company to capture significant long-term option value in pharmaceuticals, biofuels and carbon capture." Emergent BioSolutions Inc. (EBS, $17.56, +$1.01, +6.10%) said it has signed a contract valued at up to $107 million with the government to develop and obtain regulatory approval for large-scale manufacturing of the company's BioThrax anthrax vaccine. This contract led WBB Securities to raise its stock-investment rating on biopharmaceutical company to buy from hold Wednesday. Freight forwarder Expeditors International of Washington Inc. (EXPD, $39.64, +$2.48, +6.67%) predicted its second-quarter earnings will beat expectations because of large increases in both air- and ocean-freight volume. Healthcare Services Group Inc. (HCSG, $22.16, +$1.95, +9.65%), a provider of housekeeping, laundry and dietary services to long-term care and related facilities, reported second-quarter earnings per share in line with analysts' estimates and revenue ahead of the consensus view. "The company still has substantial opportunities for growth, particularly in food service, a strong balance sheet and a recession-resistant business," CL King said in a note Wednesday. IGate Corp.'s (IGTE, $16.17, +$2.00, +14.14%) second-quarter earnings climbed 84%, beating analysts' estimates, as revenue surged at the information-technology outsourcing company. The company has posted improving results since mid-2009 as businesses have resumed spending but remained reluctant to hire. The sector is also benefiting as clients revisit projects they scrapped or delayed during the downturn. Keryx Biopharmaceuticals Inc. (KERX, $4.11, +$0.55, +15.45%) said the U.S. Food and Drug Administration has given orphan-drug designation to perifosine, a treatment for cancer including neuroblastoma, or cancer of the nervous system in infants. Kulicke & Soffa Industries Inc. (KLIC, $7.99, -$0.67, -7.74%) presented at a conference in California Wednesday and, according to its slide presentation, said that while some demand remains at record levels, the maker of equipment used in semiconductor assembly has seen some orders pushed out during the fiscal fourth quarter. Credit Suisse cut the rating on insurer Lincoln National Corp. (LNC, $24.04, -$1.45, -5.69%) to neutral from outperform, saying it is more concerned about impairments if interest rates remain low. Magellan Midstream Partners LP (MMP, $47.25, -$0.99, -2.05%) said its planned equity sale of at least 5 million shares was priced at a 3.3% discount to Tuesday's close as the petroleum pipeline and storage company raises capital to help fund its planned purchase of assets from BP PLC (BP, $36.18, -$0.70, -1.90%). Beyond the $289 million deal, proceeds from the equity sale will also go toward debt repayment. Nokia Siemens Networks is in talks to buy the telecom-equipment arm of Motorola Inc. (MOT, $7.46, +$0.25, +3.47%), people familiar with the matter told The Wall Street Journal, a deal that would hasten the dismantling of the U.S. technology company. The two companies are discussing terms, and a deal could be worth $1.1 billion to $1.3 billion, one of the people said. A deal could be reached in the next few weeks, people familiar with the matter said, though talks could still fall apart. Meanwhile, MKM Partners boosted its rating on Motorola to neutral from sell, saying the company is likely to benefit from its rivals' woes. Northrop Grumman Corp. (NOC, $56.99, +$1.73, +3.13%) said it plans to consolidate its Gulf Coast shipbuilding operations at its Pascagoula, Miss., plant and has hired advisers to explore options for that business. The defense contractor said it will take a $113 million second-quarter charge related to the consolidation, and ship construction at its plant in Avondale, La., near New Orleans, will wind down in 2013. Electronics retailer RadioShack Corp. (RSH, $21.17, -$1.24, -5.53%) is conducting a soft auction for its sale, with interest coming primarily from private equity firms, CNBC's David Faber reported Wednesday, citing people familiar with the situation. Interest in a deal, however, has slowed to a "more modest" level from earlier enthusiasm, Faber reported. Ritchie Bros Auctioneers Inc. (RBA, $18.78, -$1.72, -8.39%) might regret gaveling in a conference call for tomorrow, seeing as the market immediately assumed there's no good news coming. RBA said only it will announce second-quarter gross auction proceeds and update full-year guidance, but that's not something it typically does, analysts said. RBC thinks the volumes and the mix of industrial machinery RBA's been auctioning off may be weak. Morningstar, though, thinks it a bit of a jump to assume one bad quarter is a big deal, as business isn't exactly always smooth and rarely visible. But the market's not waiting to see, selling shares on heavy volume. (MORE TO FOLLOW) Dow Jones Newswires July 14, 2010 16:54 ET (20:54 GMT)