US HOT STOCKS: Novellus, RadioShack, Syniverse, Viad -3-

13th Jul 2010 18:31

Magellan Midstream Partners LP (MMP, $48.68, +$0.53, +1.10%) agreed to acquire some storage and pipeline assets from BP PLC's (BP, $35.99, -$0.77, -2.09%) North American pipelines business for $289 million, in a move it expects will aid the development of its East Houston terminal into a key distribution point. MoneyGram International Inc. (MGI, $2.43, +$0.07, +2.89%) hired James Shields as chief financial officer, effective Tuesday. He succeeds Jeffrey Woods, who left the second-largest U.S. money-transfer service behind Western Union Co. (WU, $15.93, +$0.03, +0.19%) in January for "personal reasons" after only five months on the job. Novellus Systems Inc. (NVLS, $27.96, +$1.25, +4.68%) swung to a second-quarter profit and sales more than doubled as chip makers benefited from a big rebound in demand after the sharp drop a year earlier. The semiconductor-equipment maker's results topped its raised guidance, and Chairman and Chief Executive Richard Hill predicted a multiyear recovery in the semiconductor-equipment industry. Protalix BioTherapeutics Inc. (PLX, $6.18, +$0.16, +2.66%) said France's health regulator has temporarily approved the use of its experimental drug for Gaucher's disease, a rare genetic ailment. The announcement comes a day after the company's stock fell 4.7% as Protalix said the U.S. Food and Drug Administration set a target date for deciding on the drug's approval that was later than the Israeli biopharmaceutical company projected last month. Rumors about a RadioShack Corp. (RSH, $22.40, +$0.88, +4.09%) takeover were making the rounds again, sending shares up on heavy volume. An FBR analyst noted investors have been hearing the drumbeats for several months about a potential leveraged-buyout by a private-equity firm, and added he still sees a value at about $25 to $26 a share. Still, there seemed to be nothing new to suggest a deal is imminent and RadioShack wasn't immediately available for comment. Stereotaxis Inc. (STXS, $3.90, +$0.75, +23.81%) reported it received $10.2 million in new capital orders during its second quarter, double the prior year's amount and a 42% sequential increase. The maker of cardiology instruments used in surgery added orders in the U.S. are steadily increasing. Syniverse Technologies Inc. (SVR, $22.92, +$1.45, +6.75%) was started at a buy rating by Goldman Sachs, which said the wireless service provider should see sustained double-digit earnings growth for its industry-leading technology. Northcoast Research boosted its rating on Viad Corp. (VVI, $18.24, +$1.34, +7.93%) to buy from neutral, saying it expects that key industry metrics are picking up, pre-bookings for 2011 shows are demonstrating improvement, the business and convention services company has high incremental margins and earnings recovery potential, as well as a very strong balance sheet and an attractive valuation. Watson Pharmaceuticals Inc. (WPI, $43.17, +$0.59, +1.39%) said its unit applied for Food and Drug Administration approval of a generic version of Genzyme Corp.'s (GENZ, $53.24, -$0.50, -0.93%) Renvela kidney-failure product. Genzyme sued Watson last week in federal court in Maryland, seeking to prevent Watson from selling a generic before its patent expires. -By Dow Jones Newswires; write to [email protected] (END) Dow Jones Newswires July 13, 2010 13:31 ET (17:31 GMT)