US HOT STOCKS: Lincare Holdings, Wilshire Bancorp, Blockbuster

2nd Jul 2010 15:44

U.S. stocks were slightly higher Friday as the Dow Jones Industrial Average rose 4.8 points to 9739, the S&P 500 gained 2.5 points to 1030 and the Nasdaq Composite gained 3.2 points to 2104. Among the companies whose shares are actively trading are Lincare Holdings Inc. (LNCR), Wilshire Bancorp Inc. (WIBC) and Blockbuster Inc. (BBI, BBI.B). Shares of Lincare Holdings (LNCR, $28.99, -$2.65, -8.38%) dropped following news that Medicare payment rates for its most important product line will fall much steeper than expected. The government said Thursday it was cutting rates for medical equipment and supplies for Medicare in nine metropolitan areas in the first round of a new competitive bidding program. The cuts--which the Centers for Medicare & Medicaid Services, or CMS, said will average about 32%--are much worse than expected. Wilshire Bancorp (WIBC, $7.79, -$0.76, -8.89%) suspended its dividend and said it expects to post a second-quarter loss on an increase in its provision for loan losses and higher net loan charge-offs. The Los Angeles-based company, which has a combined 24 branches in four states and six loan-production offices, projected the loss at no more than $5 million, or 17 cents a share. Analysts on average projected a profit of 11 cents a share. Blockbuster's (BBI, $0.18, -$0.05, -22.57%) (BBI.B, $0.10, -$0.09, -47.26%) shares will be suspended and delisted by the New York Stock Exchange Wednesday after the struggling video-rental chain failed to address its lack of compliance with NYSE listing standards. The company said late Thursday that it won an extension from its senior secured noteholders after it said it wouldn't be able to make a payment on the notes due Thursday. The board also announced it approved Chairman and Chief Executive Jim Keyes to continue serving in those roles. Helix Energy Solutions Group Inc. (HLX, $9.96, -$0.76, -7.09%) said it anticipates it will need to significantly revise its estimate of proven reserves to the downside, resulting in about $160 million to $180 million in charges. It also said in its statement that its efforts to sell off its entire oil-and-gas business are taking longer than expected in light of the oil spill in the Gulf of Mexico. Sanofi-Aventis SA (SNY, $29.72, -$0.66, -2.17%) Friday declined to comment on a report that the French drugmaker is preparing an acquisition in the U.S. that could be worth around $20 billion. Citing people familiar with the situation, Bloomberg reported Thursday that Chief Executive Chris Viehbacher has briefed Sanofi's board on the deal. ISI Group analyst Mark Schoenebaum listed as the most likely targets Genzyme Corp. (GENZ, $52.82, +$2.96, +5.94%), Biogen Idec Inc. (BIIB, $49.54, +$2.81, +6.01%), Celgene Corp. (CELG, $50.75, +$1.13, +2.28%), Gilead Sciences Inc. (GILD, $34.87, +$0.73, +2.14%) and Amgen Inc. (AMGN, $52.07, +$0.05, +0.10%). Another U.S. biotech company Allergan Inc. (AGN, $62.88, +$4.78, +8.23%) also leapt. The Australian government announced sweeping changes to its planned new mining tax Friday, making major concessions to the mining industry and clearing the way for an early election, hot on the heels of the sudden installation of a new prime minister. BHP Billiton Ltd. (BHP, $63.46, +$1.04, +1.67%), Rio Tinto PLC (RTP, $45.00, +$0.74, +1.67%) and Freeport-McMoran Copper & Gold Inc. (FCX, $59.44, +$1.26, +2.16%) were among the biggest miners gaining, while mining equipment companies Joy Global Inc. (JOYG, $52.18, +$2.41, +4.84%) and Bucyrus International Inc. (BUCY, $49.66, +$1.53, +3.18%) also climbed. Other Stocks In Focus: The losses continued in shares of Amedisys Inc. (AMED, $36.94, -$2.41, -6.11%) for the second straight session after the nation's largest home health care provider announced it was one of two home health care providers facing an investigation by the Securities and Exchange Commission, which added to worries that Amedisys may be the focal point of a similar Senate inquiry. Almost Family Inc. (AFAM, $29.86, -$1.19, -3.83%) is also under SEC investigation. Leerink Swann boosted its rating on Arena Pharmaceuticals Inc. (ARNA, $3.90, +$0.34, +9.55%) to outperform from market perform after the drug company signed a partnership deal for U.S. commercialization rights to its weight-loss drug. The firm said the deal came a little earlier and included terms slightly better than expected. If Central European Distribution Corp. (CEDC, $22.30, +$0.93, +4.35%) achieves its objectives in the Russian vodka market, JPMorgan analysts predict it could have the fastest volume growth of any of its beverage distribution peers, and upgraded the stock to overweight from neutral. "We believe that the Russian branded vodka category will gain significant market share as rising disposable incomes and the clampdown on illegal vodka encourage consumers into the legal sector," the analysts noted. ComScore Inc. (SCOR, $17.30, +$0.44, +2.61%) unveiled a $24 million purchase of the products division of a company that analyzes customer behavior for mobile-phone operators, bolstering the provider of Web-measurement services' involvement in mobile platforms. Coventry Health Care Inc. (CVH, $17.69, +$0.50, +2.91%) disclosed a $262 million judgment has been affirmed against its First Health workers' compensation unit, a decision which will result in the health insurer taking a big second-quarter charge and posting a quarterly loss. Still, the company raised its full-year view excluding the charge by 40 cents per share to $2.75 to $2.90 a share. DemandTec Inc.'s (DMAN, $6.75, +$0.09, +1.35%) fiscal first-quarter loss widened as the software company posted lower margins and revenue. Wedbush analysts said the maker of software that helps retail and consumer-products companies predict demand put up good in-line results and gave guidance for the second quarter that was above expectations, though the full fiscal 2011 guidance may be slower than expected. Flow International Corp. (FLOW, $2.50, +$0.11, +4.60%) averted a loss in its fiscal fourth quarter as the industrial water-jet company broke its streak of year-on-year sales declines. Chief Executive Charley Brown said the company continues to see signs that its main segment, the standards segment, is stabilizing in most of its global markets. Prescription and over-the-counter drug maker Hi-Tech Pharmacal Co. (HITK, $21.72, -$0.76, -3.38%) said it will suspend sales of some products after it received a warning letter from the Food and Drug Administration regarding its marketing. (MORE TO FOLLOW) Dow Jones Newswires July 02, 2010 10:44 ET (14:44 GMT)