Bloomberg News

A123 Systems, Lions Gate, Safeway: U.S. Equity Movers

March 26, 2012

Shares of the following companies are having unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 1:45 p.m. in New York.

A123 Systems Inc. (AONE) fell 13 percent to $1.48 after sinking to $1.45 earlier, the lowest intraday price since it went public in September 2009. The maker of batteries for electric cars and trucks said it has started to replace “potentially defective” battery packs and modules produced at a Michigan plant.

Arena Pharmaceuticals Inc. (ARNA) rallied 23 percent, the second-most in the Russell 2000 Index, to $2.97. The weight- loss pill maker faces a Food and Drug Administration advisory panel on May 10 concerning heart risks for lorcaserin. Piper Jaffray Cos. analysts wrote that Arena advanced because it addressed the concerns in a written response to the FDA before the meeting.

BJ’s Restaurants Inc. (BJRI) gained 7.4 percent to $50.72 and gained 7.7 percent earlier, the most intraday since October 2010. The operator of brewery, pizza and grill chains was raised to outperform from neutral at Wedbush Securities Inc., which said its checks show the company is having a “solid” first quarter. The rating means Wedbush expects the stock to beat the median return of companies followed by the analyst over the next 6 to 12 months.

Edwards Lifesciences Corp. (EW) rose 3.8 percent to $74.01 and rallied 4.1 percent earlier, the most intraday since Jan. 31. The maker of products to treat late-stage cardiovascular disease rose as a company-funded study found its Sapien device replaces damaged aortic heart valves as well as surgery, without cracking open the chest or triggering higher rates of stroke or death after two years.

Hackett Group Inc. (HCKT) advanced 14 percent to $5.82 and reached $5.87 earlier, the highest intraday price since September 2008. The Miami, Florida-based business consulting services provider had its price estimate raised to $8 from $6 and was rated buy at Craig-Hallum Capital Group LP, which said it was “pleasantly surprised” by the pricing of the company’s Dutch auction tender and that Hackett is likely to attract more shareholders.

Lions Gate Entertainment Corp. (LGF) rose 4.3 percent to $15.15 after gaining as much as 6 percent, the most intraday since March 20. The film and television studio behind TV’s “Mad Men” and the Tyler Perry movies pulled in about $155 million in weekend ticket sales for its “Hunger Games” film, a record opening for the company and for the month of March.

Myriad Genetics Inc. (MYGN) rose 4 percent to $23.70 after rallying 5.1 percent, the most intraday since Feb. 1. The U.S. Supreme Court ordered the U.S. Court of Appeals for the Federal Circuit to reconsider its decision that allowed genetic material used in Myriad Genetics tests for breast and ovarian cancer to be patented.

Safeway Inc. (SWY) declined 3.5 percent, the most in the Standard & Poor’s 500 Index, to $20.39. The grocer was cut to neutral from outperform at Credit Suisse Group AG, meaning the firm expects the stock to perform in line with the market over the next 12 months. Credit Suisse said the company’s pension plans have a larger-than-expected underfunded pretax liability of $7 billion.

Tesla Motors Inc. (TSLA) rose 11 percent to $37.83 in the biggest intraday advance since Jan. 17. The maker of battery-powered cars run by entrepreneur Elon Musk was raised to buy from hold at Wunderlich Securities Inc., which said the company may be poised to exceed its production schedule and increased the price estimate to $49.

Tenet Healthcare Corp. (THC) gained the most in the S&P 500, rising 4.2 percent to $5.47. The hospital rallied after the U.S. Supreme Court opened its historic review of President Barack Obama’s health-care law, three days of arguments that might result in the president’s premier legislative achievement being found unconstitutional in the middle of his re-election campaign.

Verenium Corp. (VRNM) surged 20 percent to $3.70 and advanced 35 percent earlier, the most intraday since October 2010. The maker of enzymes used for biofuels sold a food enzyme and oilseed-processing businesses to Royal DSM NV (DSM NV) for $37 million.

ViaSat Inc. (VSAT) fell 1.5 percent to $46.66 and slipped 4.7 percent earlier, the most intraday since Feb. 7. The satellite hardware supplier was cut to underperform from neutral at Macquarie Group Ltd., which cited a “lack of visibility” surrounding the U.S. defense budget and concerns about commercial profitability.

To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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