Stocks to Watch This Week

The European Union has proposed a mandate that new vehicles sold in its member states be equipped with systems that automatically alert emergency centers after drivers get involved in road accidents. Honda Motor Co. (HMC) already offers similar alert features on some models.

BMW (BAMXY.PK) was upgraded to overweight on Wednesday by Morgan Stanley analysts who recommended switching out of Daimler (DAI) into BMW. Morgan Stanley also raised its price target on BMW to 36 euros, implying 11% upside from current levels.

Syneron Medical Ltd. (ELOS) definitively agreed to acquire for about $65 million of stock, a deal that would combine two providers of medical laser technology for aesthetic treatments like hair removal, wrinkle reduction, acne treatment and more. Syneron, Yoqneam, Israel, agreed to pay 0.2911 share for each share of Candela, (CLZR) Wayland, Mass., the companies reported on Wednesday. The deal price means Candela holders get about $2.84 a share, or 51% above the closing price of their shares on Tuesday.

Casey's General Stores Inc. (CASY) fiscal first-quarter profit rose 54% to $44.2 million, or 87 cents a share, on revenue of $1.19 billion. Analysts estimated earnings of 62 cents a share on sales of $1.17 billion.

Ista Pharmaceuticals Inc., (ISTA) the Irvine, Calif., producer of ophthalmic drugs, received clearance from the U.S. Food and Drug Administration to market Bepreve, generically bepotastine besilate, to treat itching in the eye associated with allergic conjunctivitis for patients age 2 and older. In a statement late on Tuesday, Ista reported it now expected to be able to recognize revenue from the drug this year. It increased its estimate of full-year 2009 revenue to a range of $104 million to $107 million, while it reiterated that it will be operating-earnings neutral for the year. Early in August, the company pegged revenue for 2009 at $95 million to $100 million.

Landry's Restaurants Inc., (LNY) the Houston operator of casual-dining restaurants including Rainforest Café, Landry's Seafood House and more, said that a committee of independent directors would review strategic alternatives for the company, including a possible sale. On Sept. 4, the company had received a proposal from its chairman and chief executive, proposing to take the company private. In a statement on Wednesday, Landry's declined to make any recommendations on the proposal by the executive, Tilman J. Fertitta, until it had the opportunity to review other possibilities.

Mylan Laboratories Inc. (MYL) reported late Tuesday that Chief Financial Officer Jolene Varney left the company. The maker of generic drugs did not say why she left. The company has started a search for a successor.

NYSE Euronext, (NYX), the exchange operator, indicates it would sell a "significant" equity interest in NYSE Amex options, one of its two U.S. options exchanges. Terms weren't disclosed. The buyers, the company said, include major liquidity providers and market makers, including Bank of America Merrill Lynch, (BAC), Barclays Capital, (BCS), Citadel Securities, Citi, (C), Goldman Sachs, (GS) TD Ameritrade (AMTD) and UBS. (UBS).

Pep Boys - Manny, Moe & Jack (PBY) reported second-quarter profit of $7.7 million, or 15 cents a share, up from $5.4 million, or 10 cents a share, a year earlier. Revenue fell to $488.9 million from $500 million.

Talbots Inc.'s (TLB) second-quarter loss narrowed to $24.5 million, or 45 cents a share, from $25 million, or 47 cents a share, in the year-earlier period. Excluding charges, the women's clothing retailer's loss from continuing operations was 33 cents a share. Analysts expected a loss of 55 cents a share in the quarter, according to FactSet. Sales in the quarter ended Aug. 1 fell to $304.6 million from $395.2 million. Talbots expects to report a third-quarter loss from continuing operations of about 24 cents to 30 cents a share, excluding charges.

United Parcel Service Inc. (UPS) stock lags behind the benchmark Standard & Poor's 500 Index and should provide significant upside in 2010 as the economy recovers, said broker J.P. Morgan in a Wednesday note. The firm upgraded UPS shares to overweight from neutral. The broker noted share underperformance was tied to a decline in UPS' operating margin, reflecting more senior union employees.

Vivendi (VIVDY.PK) will offer to buy Brazilian broadband and telecoms supplier GVT for around 5.4 billion Brazilian reais ($3 billion).

DISCLOSURE: NONE

Comments

[SL380Ed:]

Enjoyed your picks but suggest that MTW deserved to be included after the strong buy upgrade last week which has resulted in 6+ % gains each day this week.

Sep 11 11:28 AM