US HOT STOCKS: WellCare Health, Xinhua Finance Media, Saks

Last Update: 8/19/2008 10:09:21 AM

Among the companies whose shares are actively trading in Tuesday’s session are
WellCare Health Plans Inc. (WCG), Xinhua Finance Media Ltd. (XFML) and Saks Inc.
(SKS).

Two of WellCare’s (WCG, $44.08, $5.84, 15.26%) subsidiaries agreed to pay at
least $24.5 million to state and federal regulators in connection with
investigations into the company’s Medicaid-billing practices. But the matter
isn’t complete. The managed-care-services provider noted the agreement isn’t a
settlement or a release from civil or administrative claims against WellCare.

Xinhua Finance Media’s (XFML, $2.98, $0.26, 9.56%) second-quarter net income fell
66% amid higher expenses, but the company raised the ranges of its full-year
forecasts.

Saks (SKS, $10.13, -$1.09, -9.71%) reported its fiscal second-quarter net loss
widened amid slumping sales and declining margins as the luxury retailer cut its
outlook while continuing to face “the headwinds of the economic and retail
environment.”

Staples (SPLS, $23.41, -$1.17, -4.76%) warned that challenging market conditions
continued in the second quarter, resulting in worse-than-expected results and a
reduced outlook for the fiscal year, excluding last month’s acquisition of
Corporate Express.

Myriad Genetics Inc. (MYGN, $62.17, -$3.28, -5.01%) swung to a fiscal
fourth-quarter profit amid a license payment as the company announced it will
develop a new strategy in light of balancing both Wall Street expectations and
the need to invest in research and development. The biopharmaceutical firm said
its goal is to craft a strategy “that maximizes both the potential of our
molecular diagnostic business and the opportunity associated with our
pharmaceutical research.”

Lehman Brothers Holdings Inc. (LEH, $14.50, -$0.53, -3.54%) is considering the
sale of all or part of its prized money-management division to private equity
firms to raise billions of dollars of capital and ease the pressure caused by
losses related to real estate, The Wall Street Journal reported.

Federated Investors Inc. (FII, $33.18, $2.44, 7.94%) announced a share repurchase
program of 5 million shares of common class B stock, adding to the 2.8 million
shares that are still authorized for buyback. The investment manager also
announced a special cash dividend of $2.76 per share.

Goldman Sachs cut its investment rating on Total Systems Services Inc.’s (TSS,
$19.59, -$0.99, -4.81%) stock to sell from neutral. The firm processes
credit-card transactions.

Other Stocks In Focus

Circuit City Stores Inc. (CC, $1.83, $0.03, 1.67%) appointed James A. Marcum as
vice chairman amid plans to “accelerate the pace of the company’s turnaround.”
The turnaround expert joined the board earlier this year in the wake of a proxy
battle over the pace of the struggling electronics retailer’s efforts to improve
its fortunes.

BMO Capital Markets lowered its investment rating on Hasbro Inc.’s (HAS, $37.23,
-$1.26, -3.27%) stock to underperform from market perform, saying it thinks the
stock is overvalued.

General Dynamics Corp. (GD, $91.51, -$0.73, -0.79%) will buy Jet Aviation, a
Switzerland-based provider of services to airports, for $2.25 billion. Jet
Aviation is controlled by European investment firm Permira. The company operates
in 25 airports across Europe, the Middle East, Asia and the Americas.

Medical-devices maker Medtronic Inc. (MDT, $54.11, $0.66, 1.24%) posted an 11%
rise in fiscal first-quarter net income as the company continued to benefit from
international sales and the launch of its Endeavor drug-eluting stent.

ReneSola Ltd.’s (SOL, $17.44, -$0.53, -2.96%) second-quarter net income almost
quadrupled, as the company’s output rose dramatically, leading ReneSola to
increase its 2008 revenue and production outlooks.

Target Corp.’s (TGT, $49.32, -$0.73, -1.46%) fiscal second-quarter net income
fell 7.6% as higher retail profits and sales growth failed to offset troubles in
the company’s credit-card business as well as a decline in same-store sales.

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