US HOT STOCKS: Questcor Pharma Active In Late Trading

11th Jun 2010 21:56

U.S. stocks ended higher Friday as the Dow Jones Industrial Average gained 39 points to 10211, the Standard & Poor's 500 increased 4.8 points to 1092 and the Nasdaq Composite rose 25 points to 2244. Among the companies whose shares are actively trading in the after-hours session is Questcor Pharmaceuticals Inc. (QCOR). Questcor Pharmaceuticals said the U.S. Food and Drug Administration extended the date to approve its injectable drug Acthar for the treatment of infantile spasms. The drug company said the extension is to review information regarding labeling and potential post-approval commitments. Shares declined 8.2% to $9.35 in after-hours trading. Regular Session Movers Billionaire Nelson Peltz disclosed Thursday that a third party has made an oral expression of interest in a potential acquisition involving the fast food restaurant chain operator Wendy's/Arby's Group Inc. (WEN, $4.65, +$0.31, +7.14%). The type of transaction wasn't described in the filing with the Securities and Exchange Commission. But Peltz, whose hedge fund owns nearly a quarter of the company, said he expects "to contact and discuss a possible transaction involving the company with potential debt and/or equity financing sources, other shareholders of the company and other interested third parties." ArcSight Inc.'s (ARST, $23.40, +$3.58, +18.06%) fiscal fourth-quarter earnings soared on strong sales that beat its optimistic outlook as the compliance and security software company continued to benefit from increased awareness of cybersecurity. It also gave an upbeat outlook for the current fiscal quarter and year. BP PLC (BP, $33.97, +$1.19, +3.63%) rose as investors regained some confidence in the major oil company's ability to cope with the political and financial fallout from the massive oil spill in the Gulf of Mexico. "BP shares now have as much upside potential as the rest of the European integrated oil sector," Goldman Sachs analysts said. Also continuing to rise were Transocean Ltd. (RIG, $46.85, +$2.58, +5.83%), Anadarko Petroleum Corp. (APC, $41.79, +$2.64, +6.74%) and Halliburton Co. (HAL, $24.39, +$0.17, +0.70%). Buckeye Partners LP (BPL, $55.86, -$2.31, -3.97%) agreed to acquire Buckeye GP Holdings LP (BGH, $36.65, +$5.47, +17.54%), which owns the general partner of Buckeye Partners, in an all-equity deal valued at $1.16 billion. The deal will reduce Buckeye Partners' quarterly distribution payouts and both companies' capital costs. Buckeye Partners is a master limited partnership engaged in refined-products transmission, gas storage and wholesale fuel distribution. Under the agreement, Buckeye GP holders will receive 0.705 of a Buckeye Partner unit, valuing Buckeye GP at $41.01 a unit, a 32% premium to Thursday's closing price. Analysts said for-profit college stocks could rally as expectations build that the government will delay a pending measure penalizing schools for graduating students with high debt-to-income ratios. Some skepticism is warranted, as the rumor originated with an industry lobbying group which had said the rule would "crush" the schools. Still, William Blair said other sources are backing the claim and sees possible "material uptick in valuations" for DeVry Inc. (DV, $57.10, +$1.63, +2.94%), Career Education Corp. (CECO, $26.98, +$0.81, +3.10%) and ITT Educational Services Inc. (ESI, $97.72, +$1.35, +1.40%). Also rising were Apollo Group Inc. (APOL, $51.10, +$0.84, +1.67%) and Corinthian Colleges Inc. (COCO, $11.93, +$0.29, +2.49%). Spanish banking giant Banco Santander SA (STD, $10.55, +$0.64, +6.46%) expects to have a similar net profit this year as in 2009, despite economic uncertainty and weakness in Spain, Chairman Emilio Botin said Friday during the bank's annual general meeting. Santander, the largest bank in the euro zone by market value, in 2009 reported net profit of EUR8.894 billion ($10.78 billion). Bristol-Myers Squibb Co. (BMY, $25.08, +$0.44, +1.79%) and Pfizer Inc. (PFE, $15.46, +$0.55, +3.69%) said they stopped a clinical trial early because the data so far suggest an experimental drug for irregular heart rhythm was superior to aspirin. The drug, apixaban, is designed to prevent clotting of the blood. The New York-based drug makers studied apixaban in people with atrial fibrillation, a disease involving irregular heartbeat that increases the risk for stroke. Meanwhile, Bristol-Myers was upgraded by analysts at both Citigroup and Leerink Swann, which highlighted the company's positive cancer-news this week. Cantor Fitzgerald started coverage of First Solar Inc. (FSLR, $107.27, -$2.09, -1.91%) with a sell rating, citing the solar company's exposure to Europe. The firm said about 86% of First Solar's 2009 revenue came from the EU, and it's "taking a bearish outlook on development of the EU PV market in 2011 due to the effects of decreased subsidies and economic austerity measures." The firm is also taking a bearish view of the dollar to euro exchange rate. Capstead Mortgage Corp. (CMO, $11.32, -$0.16, -1.39%), a real-estate investment trust that invests in residential-mortgage securities that are backed by adjustable-rate mortgages issued by the government-backed Fannie Mae (FNM, $0.93, +$0.01, +0.98%) and Freddie Mac (FRE, $1.21, +$0.01, +0.83%), has cut its quarterly dividend to 36 cents a share from 50 cents a share. Cell Therapeutics Inc. (CTIC, $0.45, +$0.09, +24.24%) said exploratory analysis of data from a trial of Pixuvri for patients with relapsed or refractory, aggressive non-Hodgkin's lymphoma showed patients who had a complete response to the drug had a 63% chance of being alive at 24 months compared with a 20% probability for patients treated with comparable drugs. In addition, the study showed a 21% improvement in overall survival for all patients who received Pixuvria that was independent of factors known to influence survival like prior rituximab use and other factors. China-Biotics Inc.'s (CHBT, $14.08, -$1.40, -9.04%) fiscal fourth-quarter earnings fell 56% on valuation changes in convertible bonds as sales rose to a record, though still fell slightly short of analysts' expectations. The Chinese probiotics distributor also forecast sales growth for the new year of at least 50% amid rising market demand and increasing government support for probiotics. Analysts polled by Thomson Reuters, on average, expected a 53% increase to $125 million. Exide Technologies (XIDE, $5.69, +$0.30, +5.57%) signed a new licensing agreement with a consumer-products division of Honeywell International Inc. (HON, $41.32, +$0.06, +0.15%), in which battery maker Exide will use Honeywell's Autolite trademark for batteries it produces for automotives, lawn and garden, marine, and power sports applications in North America. Clothing retailer Express Inc.'s (EXPR, $15.66, +$1.65, +11.78%) fiscal first-quarter profit more than quadrupled, helped by surging sales and margins. Finisar Corp. (FNSR, $15.00, +$0.76, +5.34%) swung to a fiscal fourth-quarter profit on better-than-expected revenue growth and improved margins, while year-earlier results were stung by write-downs. The fiber-optic equipment maker also gave a strong sales view for the current quarter. (MORE TO FOLLOW) Dow Jones Newswires June 11, 2010 16:56 ET (20:56 GMT)