US HOT STOCKS: Google, Conceptus, Big 5 Sporting Goods, Regis

9th Jul 2010 15:22

U.S. stocks were rising Friday morning, with the Dow Jones Industrial Average recently up 13 points to 10152, the S&P 500 gaining 1.8 points to 1072 and the Nasdaq Composite adding 3.4 points to 2179. Among the companies whose shares are actively trading are Google Inc. (GOOG), Conceptus Inc. (CPTS) and Big 5 Sporting Goods Corp. (BGFV). Google ($465.64, +$9.08, +1.99%) said Friday that its Internet license has been renewed in China, and it looks "forward to continuing to provide web search and local products to our users in China." Google made the statement on its company blog, giving no further details. Chief Executive Eric Schmidt had said Thursday he expected the renewal, raising hope of uninterrupted operations after many months of uncertainty. Meanwhile, China's competitor of Google, Baidu Inc. (BIDU, $71.46, -$0.97, -1.34%), saw its American Depositary shares slip. It had been rising on the hopes Google would leave. Conceptus ($12.79, -$3.00, -19.00%) lowered its second-quarter and full-year guidance, citing the weak economy--which has reduced visits to doctors--as well as the stronger dollar and company initiatives related to competitive "trialing." Big 5 Sporting Goods ($10.97, -$1.04, -8.66%) cut its second-quarter earnings guidance as it posted a surprise 0.5% drop in same-store sales, which the regional sporting-goods dealer blamed on the sluggish economic recovery. Regis Corp.'s (RGS, $14.06, -$1.67, -10.62%) fiscal fourth-quarter revenue fell a bigger-than-expected 5.6%, the third-straight quarter the top line came in below analysts' expectations for the parent of haircut chains such as Supercuts. "The beauty salon segment of retailing is still experiencing the lengthening of time between customer visits," said Chairman and Chief Executive Paul Finkelstein. Other Stocks In Focus: Standard & Poor's said commercial insurer Ace Ltd. (ACE, $54.99, +$2.77, +5.30%) would replace Millipore Corp. in the S&P 500 index after the end of trading Wednesday, when Millipore's acquisition by pharmaceutical and chemicals company Merck KGaA (MKGAY, MRK.XE) is expected to close. Air Products & Chemicals Inc. (APD, $69.40, +$0.62, +0.90%) said it is raising its offer for Airgas Inc. (ARG, $64.21, +$0.34, +0.53%) to $63.50 a share from $60. The new price represents a 46% premium over Airgas's share price the day before Air Products launched a hostile takeover Feb. 4. Aviat Networks Inc. (AVNW, $4.11, +$0.33, +8.73%) cut its fiscal fourth-quarter revenue target, largely on component shortages and delays as the wireless network-services provider moves to outsource manufacturing. Chairman and Chief Executive Chuck Kissner said he and Aviat's board weren't "satisfied" with the company's recent performance and were planning a comprehensive strategic plan--including cost-cutting and refocusing the product mix--to restore profitability. Actions will be announced on or before Aug. 20, when the fourth-quarter results are due. Jefferies cut Best Buy Co. (BBY, $33.78, -$0.62, -1.80%) to hold from buy and lowered its EPS estimates and price target, citing concerns about "continued softness" in consumer electronic sales. "Based on our checks and commentary from general merchandise retailers yesterday... regarding softening electronic trends, we believe consumer electronic sales continue to soften sequentially from May and [first-quarter] levels," the firm said. Expedia Inc. (EXPE, $18.80, -$0.18, -0.95%) has underperformed, been hurt more by competition than expected and may be facing slowing demand, Goldman Sachs said in removing the online travel agent from its conviction buy list. Still, the firm rates the stock a buy as trends continue to improve in hotels. Credit Suisse upgraded KLA-Tencor Corp. (KLAC, $29.49, +$0.79, +2.75%) to outperform from neutral, saying that investor concerns were more than priced in and that the supplier of inspection and measurement systems to semiconductor makers probably will see its memory product exposure return closer to historical highs. The firm said a presentation next week and the next quarterly earnings report will be positive catalysts. Lawson Software Inc.'s (LWSN, $7.39, -$0.23, -3.02%) fiscal fourth-quarter earnings fell 30% as restructuring charges and other effects again obscured core-profit growth, better sales and improved margins. The business-software maker gave a weak outlook. Myriad Genetics Inc. (MYGN, $14.62, -$1.08, -6.88%) was cut to neutral from overweight by JPMorgan, which said the biopharmaceutical company has underperformed as "lingering unemployment has weighed on physician office visits, and expansion from the core oncology base into a more fragmented OB/GYN market has proved challenging." Citigroup downgraded London's National Grid PLC (NGG, $37.50, -$1.10, -2.85%) to hold from buy saying now the dust has settled on the surprise rights issue, three issues will determine the company's future: "the UK capex surge, how the capex/dividend is funded, and the likely strategic review of National Grid's US operations." The firm said the new UK government seems committed to the environmental targets it inherited and in response, National Grid has upped its capex. And unless the government policy changes, the capex is only likely to rise further, Citi said. JPMorgan upgraded railroad operator Norfolk Southern Corp. (NSC, $53.06, +$1.10, +2.12%) to overweight from neutral, saying the coal and intermodal business was attractive and the outlook for coal is even improving. Discount club-store operator PriceSmart Inc.'s (PSMT, $25.18, +$0.64, +2.61%) fiscal third-quarter profit jumped 38% as revenue grew and its stores' margins increased. The company also said June same-store sales jumped 15%. The result trounced U.S. retailers, which posted mixed same-store sales for the month after offering steep discounts to try to attract tightfisted consumers in a sluggish economy. ScanSource Inc. (SCSC, $26.69, +$1.59, +6.33%), a distributor of security devices such as bar-code scanners and card readers, raised its fiscal fourth-quarter sales guidance, becoming yet another technology provider to see demand top expectations. TeleCommunication Systems Inc. (TSYS, $4.02, +$0.14, +3.61%) has received a U.S. Army order for up to $9.8 million in communications gear and support. Under the deal announced Friday, the Army will pay $1.7 million up front and up to a total of $9.8 million if it exercises options through August 2011. The mobile communications company's gear allows soldiers to make calls and send video and data over an encrypted connection. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires July 09, 2010 10:22 ET (14:22 GMT)