US HOT STOCKS: Lawson Software, Myriad, ScanSource-2-

9th Jul 2010 18:20

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, $14.75, -$0.95, -6.05%) 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, $37.84, -$0.76, -1.97%) 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, $53.25, +$1.29, +2.48%) 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, $24.83, +$0.29, +1.18%) 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, $26.40, +$1.30, +5.18%), 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, $4.08, +$0.20, +5.15%) 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 13:20 ET (17:20 GMT)