HOT STOCKS TO WATCH: Circuit City, 3Com, ImClone

Sep.23, 2008 in U.S Hot Stocks

Last Update: 9/23/2008 7:41:08 AM

By Dow Jones

Among the companies whose shares are expected to see active trade in Tuesday’s
session are Circuit City Stores Inc. (CC), 3Com Corp. (COMS) and ImClone Systems
Inc. (IMCL).

3Com jumped 11% in late trading as the networking-equipment maker swung to a
fiscal first-quarter profit on a litigation settlement and higher sales and
margins. Results topped forecasts.

Circuit City jumped 12% premarket as Chairman and Chief Executive Philip J.
Schoonover agreed to resign, and the struggling consumer-electronics retailer
said it expects fiscal second-quarter results “slightly better” than its June
forecast.

Bristol-Myers Squibb Co. (BMY) increased its takeover offer for ImClone by $2 a
share to $62, valuing the company at $4.7 billion. ImClone shares gained 6.5%
premarket as Bristol-Myers Squibb was up 1%.

Sinclair Broadcasting Group Inc. (SBGI) slid 9% in late trading as the
television-station owner cut its third-quarter revenue guidance because political
advertising is lower than anticipated.

Toronto-Dominion Bank (TD) is among the companies now weighing a bid for Seattle
thrift Washington Mutual Inc. (WM), people familiar with the situation told The
Wall Street Journal. In addition to Toronto-Dominion, suitors include Citigroup
Inc. (C), JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and Spain’s Banco
Santander SA (STD).

E*Trade Financial Corp. (ETFC) rose 4% after-hours after the online brokerage
firm said it will post a third-quarter pretax gain of $425 million related to the
sale of its Canadian operations to Bank of Nova Scotia (BNS).

Student-loan packager First Marblehead Corp. (FMD) fell 6% in late trading after
announcing several executive changes, including the appointment of a new chief
financial officer.

Union Pacific Corp. (UNP) raised its third-quarter earnings estimates, saying
lower diesel-fuel costs and strong operating efficiency will offset lower volumes
and the impact of recent hurricanes. Shares of the nation’s largest railroad
operator by revenue rose 2% after-hours.

Walgreen Co.’s (WAG) chief executive assured Longs Drug Stores Corp.’s (LDG)
board that his company’s proposal to buy Longs for $2.7 billion is “superior” to
a bid by CVS Caremark Corp. (CVS) and “can be consummated without undue delay.”
Walgreen’s and Longs’ shares rose less than 1% in after-hours trading while CVS
climbed 3%.

Waste Connections Inc. (WCN) slipped 3% in late trading after the
trash-collecting business cut its third-quarter revenue estimate below analyst
expectations, saying its price increases would be offset by sliding volume.

Watch List

Lennar Corp. (LEN) reported a narrowed fiscal third-quarter loss on a steep drop
in the homebuilder’s write-downs and cost-cutting, though orders, deliveries and
sales prices continued to drop as the cancellation rate rose.

Air Products & Chemicals Inc. (APD) lowered its fiscal fourth-quarter earnings
expectations, only partially due to demand weakness, as fires and hurricanes will
also affect results. Shares of the industrial gas maker weren’t trading
premarket.

Apparel retailer Cache Inc. (CACH) lowered its quarterly and full-year forecasts,
citing lower sales because of “a difficult homecoming dress season prompted by
the tough economy.”

Gap Inc. (GPS) agreed to buy Athleta Inc. - a women’s sport and active apparel
company in California - for about $150 million in cash as part of its efforts to
bolster its image and offerings. The retailer said the acquisition will allow it
to enhance its presence in the growing $31 billion women’s active apparel sector.

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