US HOT STOCKS TO WATCH: SiRF Tech, Rio Tinto, Anadarko

Last Update: 8/26/2008 7:41:38 AM

By Dow Jones .

Among the companies whose shares are expected to see active trade in Tuesday’s
session are SiRF Technology Holdings Inc. (SIRF), Rio Tinto Ltd. (RTP) and
Anadarko Petroleum Corp. (APC).

Broadcom Corp. (BRCM) said an administrative law judge has recommended that the
U.S. bar importation of chips made by SiRF that were found to infringe on
Broadcom’s patents. The judge also recommended that the U.S. International Trade
Commission prohibit SiRF from engaging in some activities related to the
infringing chips. SiRF fell 4.5% in after-hours trading Monday, while Broadcom
rose slightly.

Rio Tinto’s (RTP) first-half net profit more than doubled, showing it has better
earnings momentum than BHP Billiton Ltd. (BHP) and strengthening its defense
against the $160 billion hostile bid from its rival. However, BHP Chief Operating
Officer Alberto Calderon told Dow Jones Newswires that, while Rio’s results were
good, it only served to reinforce the value BHP was offering in its bid. Rio fell
3.2% in premarket trading, while BHP declined 0.5%.

Anadarko Petroleum Corp. (APC) plans to repurchase up to $5 billion of stock, or
18% of its outstanding shares at current prices, as the oil-and-gas firm also
plans to boost capital spending next year amid soaring oil prices. Shares rose
2.4% after-hours.

Take-Two Interactive Software Inc. (TTWO) has signed a confidentiality agreement
with Electronic Arts Inc. (ERTS), another sign the firms could reach a friendly
merger agreement. Take-Two rose 2.2% in late trading.

Coach Inc.’s (COH) board authorized the buyback of up to $1 billion in common
stock - about 10% of its current market capitalization - by June 2010. The
marketer of fine accessories and gifts, which announced it had just finished its
previous $1 billion buyback, climbed 2% in premarket trading.

Biogen Idec Inc. (BIIB) and Elan Corp. (ELN) are working with the Food and Drug
Administration to amend the label for multiple sclerosis drug Tysabri after two
patients in Europe got a serious brain disorder while taking the drug. Elan
shares rose 1.5% in late trading, while Biogen was little changed.

Watch List

Big Lots Inc. (BIG) posted an 11% increase in fiscal second-quarter net income
amid higher sales and margins as the closeout retailer again raised its
fiscal-year outlook. Results topped analysts’ expectations.

Charming Shoppes Inc. (CHRS) has agreed to sell its misses apparel catalogs and
credit-card receivables related to those catalogs for a total of $75 million. The
troubled women’s retailer had announced plans in April to explore strategic
alternatives for its noncore catalog titles to focus on its core brands.

Credit Suisse Group (CS) said Tuesday it bought a majority stake in a small U.S.
firm that provides funding for asset management companies for $384 million,
paying with newly issued stock, and hoping to expand the business
internationally. Credit Suisse said it is acquiring more than 80% of Asset
Management Finance Corp., or AMF, from National Bank Financial of Canada (NA.T).

Delta Air Lines Inc. (DAL) tapped a $1 billion loan ahead of its planned merger
with Northwest Airlines Corp. (NWA) and said it had renegotiated agreements with
credit-card processors to ensure that sales revenue continues to be turned over
promptly.

Sanderson Farms Inc. (SAFM) swung to a fiscal third-quarter net loss as cost
increases far exceeded revenue gains, and the company saw a reduction in sales to
restaurants. Margins for the chicken producer tumbled to 2.6% from 16.6%.

Temasek Holdings Pte. Ltd. expects to hold a 13% to 14% stake in Merrill Lynch &
Co. Inc. (MER) after receiving U.S. approval for its latest stock purchase in the
brokerage, said an executive at the Singapore state investment company. The
statement gave the first indication of the total size Temasek will hold after
Merrill’s most recent capital-raising effort last month.

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