US HOT STOCKS: Cypress Semi, Reliant Energy, Conexant

By Daniel | September 30, 2008

US HOT STOCKS: Cypress Semi, Reliant Energy, Conexant

Last Update: 9/30/2008 10:18:14 AM

Among the companies whose shares are actively trading in Tuesday’s session are
Cypress Semiconductor Corp. (CY), Reliant Energy Inc. (RRI) and Conexant Systems
Inc. (CNXT).

Cypress Semiconductor ($5.26, $2.16, 69.68%) jumped as the company’s shares were
transferred to the S&P SmallCap 600 index from the S&P MidCap 400 index after the
completion of its spin-off of SunPower Corp. (SPWR).

Reliant Energy ($7.34, -$2.74, -27.18%) cut its 2008 outlook, citing the impact
of Hurricane Ike and a drop in commodity prices. The energy company also arranged
to raise $1 billion in capital despite “unfavorable” conditions. Reliant was cut
to neutral from add by Calyon early Tuesday.

Conexant ($3.87, $0.99, 34.38%) again raised its fiscal fourth-quarter profit
target, citing higher-than-projected profit margins. The semiconductor firm now
sees earnings for the quarter ending Friday of 24 cents to 25 cents a share, up
from July’s raised view of 13 cents to 17 cents a share, and boosted its
gross-margin forecast by 2.5 percentage points to 54% to 55%.

A Delaware judge refused to allow private-equity firm Apollo Management LP to
walk away from its $6.5 billion acquisition of Huntsman Corp. (HUN, $11.85,
$4.50, 61.22%).

Sovereign Bancorp Inc. (SOV, $3.78, $1.45, 62.23%) plans to name a new chief
executive as early as Tuesday, people familiar with the matter told The Wall
Street Journal. Its shares dropped 72% Monday.

Financial stocks were rising, although most were able to erase only a small bit
of Monday’s steep decline after the House’s rejection of the White House’s $700
billion bailout plan sent the Dow Jones Industrial Average plunging to its
largest single-day point drop in history. Gainers include JP Morgan Chase & Co.
(JPM, $43.93, $2.93, 7.15%), which fell 15% Monday; and Citigroup Inc. (C,
$19.03, $1.28, 7.21%), which slid 12% Monday.

Other Stocks In Focus:

Shares of corn ethanol giant VeraSun Energy Corp. (VSE, $3.05, -$0.95, -23.75%)
slid after surging 80% Monday on expectations the company is close to striking a
deal to sell itself.

Deere & Co. (DE, $48.09, $0.32, -0.67%) announced plans to form a joint venture
with Ashok Leyland Ltd. (500477.BY) to manufacture and market backhoes and
four-wheel-drive loaders that will be sold in India and exported to other
markets.

Insurer Genworth Financial Inc. (GNW, $6.41, $1.41, 28.10%), whose shares have
been battered of late amid the deepening credit crunch, announced it will explore
options for its U.S. mortgage-insurance business, including a spinoff.

Pepsi Bottling Group Inc.’s (PBG, $29.44, $1.37, 4.88%) fiscal third-quarter net
income fell 11% amid slumping case volume it blamed on the weakening gl?bal
economy and a year-earlier gain.

PMI Mortgage Insurance Co. (PMI, $2.84, -$0.51, -15.22%) fell on news that
mortgage insurance applications fell in August to the lowest level in more than a
year, and new mortgage defaults and cures of existing defaults increased.

Timken Co. (TKR, $27.01, $2.44, 9.93%) raised its third-quarter and full-year
earnings guidance amid strong global industrial demand and declining scrap metal
costs.

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