US HOT STOCKS: FMC Tech, Genzyme, ON Semi, Sanderson Farms -2-

26th Jul 2010 15:03

FMC Technologies Inc.'s (FTI, $60.74, -$3.00, -4.71%) second-quarter earnings fell a less-than-feared 9.2% as revenue dropped but backlog increased sequentially at the maker of oil-and-gas drilling equipment. France's Sanofi-Aventis SA (SNY, $29.29, -$0.06, -0.20%) may not be the only large drug maker to set its eyes on struggling biotechnology company Genzyme Corp. (GENZ, $66.33, +$3.81, +6.09%). After news of Sanofi's interest in the U.S. company became public Friday, investors and bankers are scrambling to find out whether Sanofi's rivals could also be interested in making a play for Genzyme, which makes drugs for rare, inherited disorders. Britain's GlaxoSmithKline PLC (GSK, $36.28, -$0.22, -0.60%) and New Jersey-based Johnson & Johnson (JNJ, $57.75, +$0.12, +0.21%) are seen as the most logical suitors for Genzyme, bankers and analysts said. Jefferies boosted its rating on Patterson-UTI Energy Inc. (PTEN, $15.82, +$0.16, +1.02%) to buy from hold, saying the company should see better upside than many of its land-rig peers due to the changing quality of its active asset base. PCTEL Inc. (PCTI, $6.00, +$0.20, +3.45%) posted second-quarter results that topped Street estimates as the provider of wireless network optimization solutions saw strong growth in some of its key vertical markets. Roper Industries Inc. (ROP, $62.85, +$0.84, +1.35%) has agreed to buy iTradeNetwork Inc., a food industry supply-chain-management and solutions company, from technology-focused private-equity firm Accel-KKR for $525 million. Roper, which makes engineered products used in the water, energy and transportation industries, said iTradeNetwork is "an excellent addition" and complements its existing software-services platforms. Morgan Stanley cut its stock-investment rating on chicken processor Sanderson Farms Inc. (SAFM, $48.03, -$2.72, -5.36%) to underweight from equalweight, saying it expects grains prices to continue their recent rally but chicken price increases to, at best, materially lag grain. Sohu.com Inc.'s (SOHU, $46.06, +$1.02, +2.26%) second-quarter profit fell 0.2% as the Chinese Internet portal reported record revenue on strength in its brand-ads and online-game businesses. Results topped expectations, and the company--which generates essentially all of its online-gaming revenue through Changyou.com Inc. (CYOU, $28.57, +$1.92, +7.20%)--projected strong third-quarter results. Volt Information Sciences Inc. (VOL, $8.09, -$0.30, -3.58%) said the New York Stock Exchange has extended its deadline to file its annual report for the year ended Nov. 1, 2009 in order for the information-services company to keep trading on the NYSE. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires July 26, 2010 10:03 ET (14:03 GMT)