US HOT STOCKS: FirstCity Financial, Monsanto, Rio Tinto -2-

30th Jun 2010 22:12

Energy Inc. (EGAS, $10.86, -$0.59, -5.15%) said it will sell up to 2.5 million shares to raise funds to expand its distribution systems as well as for working capital and general corporate purposes. The offering would increase the number of shares outstanding at the natural gas utility by 42%. Shares of EnteroMedics Inc. (ETRM, $0.36, -$0.12, -24.98%) fell after the developmental medical-device maker company unveiled plans for a 1-for-6 reverse stock split to comply with Nasdaq trading standards. FirstCity Financial Corp. (FCFC, $6.66, +$0.76, +12.88%) announced it has refinanced credit lines and reached a deal to team up with fellow distressed-asset investor Varde Investment Partners LP. Fuqi International Inc. (FUQI, $6.80, -$0.73, -9.69%), which exaggerated earnings in the first ninth months of last year because of accounting errors, won't be able to file its restated 2009 results or its first-quarter data with the Securities and Exchange Commission as soon as it had expected, the Chinese jewelry company said. Chinese technology-outsourcing provider HiSoft Technology International Ltd. (HSFT, $10.40, +$0.40, +4.00%) rose after the company's initial public offering of at least 7.4 million American depositary shares priced at $10 each, below prior expectations of $11 to $13. Standard & Poor's Ratings Service lowered its outlook on JDA Software Group Inc. (JDAS, $21.98, -$0.49, -2.18%) to stable, saying a $246 million verdict against the supply-chain software company could potentially weaken its financial flexibility. Monsanto Co.'s (MON, $46.22, -$1.12, -2.37%) fiscal third-quarter earnings plunged 45% on restructuring charges and sharply reduced herbicide sales as the company relies less on its Roundup weed-killer business. It also forecast per-share results this quarter, excluding restructuring charges, between a 9-cent loss and an 11-cent profit. Analysts polled by Thomson Reuters expected earnings of 3 cents a share. Goldman Sachs cut its price targets for several regional casino stocks after a weak read on May revenue. The firm said regional revenue dropped 3% last month, falling sequentially in every state it tracks except Florida. Penn National Gaming Inc. (PENN, $23.10, -$0.67, -2.82%), Pinnacle Entertainment Inc. (PNK, $9.46, -$0.43, -4.35%), Ameristar Casinos Inc. (ASCA, $15.06, -$0.37, -2.40%) and Boyd Gaming Corp. (BYD, $8.49, -$0.44, -4.93%) all saw target cuts. Goldman also cut its price targets on slot companies International Game Technology (IGT, $15.70, -$0.43, -2.67%) and Bally Technologies Inc. (BYI, $32.39, -$1.31, -3.89%). Philips-Van Heusen Corp. (PVH, $46.27, +$0.52, +1.14%) said it would top its fiscal second-quarter forecast if current trends continue, including a 12% rise in same-stores sales at the apparel maker's U.S. outlet operations. Anglo-Australian mining giant Rio Tinto PLC (RTP, $43.60, -$1.82, -4.01%) said it would exercise warrants to purchase shares of Ivanhoe Mines Ltd. (IVN, $13.04, -$0.31, -2.32%), boosting its stake to 30% for about $393 million. Rio holds a 22% stake in the miner of Mongolian copper and gold deposits. It could take a stake of up to 44% if it exercises all its warrants and converts a $350 million load into shares. (MORE TO FOLLOW) Dow Jones Newswires June 30, 2010 17:12 ET (21:12 GMT)