US HOT STOCKS: Wendy's/Arby's, ArcSight, BP, Buckeye GP

11th Jun 2010 15:24

U.S. stocks were mixed on Friday as the Dow Jones Industrial Average slipped 12 points to 10158, the S&P 500 dropped 0.8 points to 1086 and the Nasdaq Composite rose 6.7 points to 2226. Among the companies whose shares are actively trading are Wendy's/Arby's Group Inc. (WEN), ArcSight Inc. (ARST) and BP PLC (BP). 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 ($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's ($23.64, +$3.82, +19.27%) 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 ($33.71, +$0.93, +2.84%) 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, $45.98, +$1.71, +3.86%), Anadarko Petroleum Corp. (APC, $41.42, +$2.27, +5.80%) and Halliburton Co. (HAL, $24.60, +$0.38, +1.57%). Buckeye Partners LP (BPL, $55.70, -$2.47, -4.25%) agreed to acquire Buckeye GP Holdings LP (BGH, $36.36, +$5.18, +16.61%), 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 cynicism is warranted, as 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 Education Management Corp. (EDMC, $17.97, -$0.70, -3.75%), DeVry Inc. (DV, $57.33, +$1.86, +3.35%), Career Education Corp. (CECO, $27.50, +$1.33, +5.08%) and ITT Educational Services Inc. (ESI, $99.85, +$3.48, +3.61%). Also rising were Apollo Group Inc. (APOL, $51.70, +$1.44, +2.86%) and Corinthian Colleges Inc. (COCO, $12.25, +$0.61, +5.24%). Other Stocks In Focus: Spanish banking giant Banco Santander SA (STD, $10.61, +$0.70, +7.07%) 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, $25.39, +$0.75, +3.04%) and Pfizer Inc. (PFE, $15.40, +$0.49, +3.29%) 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. Capstead Mortgage Corp. (CMO, $11.23, -$0.25, -2.18%), 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, +1.08%) and Freddie Mac (FRE, $1.22, +$0.02, +1.67%), has cut its quarterly dividend to 36 cents a share from 50 cents a share. Exide Technologies (XIDE, $5.66, +$0.27, +5.01%) signed a new licensing agreement with a consumer-products division of Honeywell International Inc. (HON, $41.01, -$0.25, -0.61%), 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, $15.08, +$1.07, +7.64%) fiscal first-quarter profit more than quadrupled, helped by surging sales and margins. Finisar Corp. (FNSR, $14.88, +$0.64, +4.49%) 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 10:24 ET (14:24 GMT)