Monday, April 11, 2011

Hot Stocks Of The Day: MCP, LVLT, PUDA, THC, JNS

Below we highlight few companies whose shares are actively trading in Monday's session.

Molycorp, Inc. (NYSE: MCP) rallied more than 5% after JP Morgan analyst Michael F. Gambardella lifted his price target on the U.S.-based rare earth miner from $74 to $90 and reiterated his Overweight rating. We feel comfortable with these higher numbers given the continued increase in domestic Chinese prices," Gambardella said. "We believe rare earth prices will not fall as significantly as the market anticipates as new supply eventually comes on line outside of China, and note that current Chinese domestic prices are supportive of MCP's valuation."

Shares of Level 3 Communications, Inc. (NASDAQ: LVLT) soared more than 13% on Monday after it agreed to acquire Global Crossing Limited (NASDAQ: GLBC) in a tax-free, stock-for-stock transaction. Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. 

Puda Coal, Inc. (AMEX: PUDA) plunged more than 10% after the company announced that its Board of Directors has unanimously ratified the Audit Committee's decision to launch a full investigation into the allegations raised in a recent article alleging various unauthorized transactions in the shares of a subsidiary company, Shanxi Coal. The Audit Committee has retained professionals in the United States and China to assist it in its investigation. The full board, including Mr. Ming Zhao, the Chairman of Puda Coal, has agreed to cooperate in the investigation. Although the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete. The New York Stock Exchange has halted trading in the Company's stock.

Tenet Healthcare Corp. (NYSE: THC) plunged more than 14% after the company filed a lawsuit against Community Health Systems Inc. (NYSE: CYH)in federal court in Dallas, alleging that CHS has been systematically overbilling Medicare. The company also accused Community, which went public in December with its $3.3 billion hostile offer for Tenet, of misrepresenting expected "synergy potential" of a deal between the companies. 

Janus Capital Group, Inc. (NYSE: JNS) rose moe than 25 after Wells Fargo upgraded its rating on the company to Outperform from Market Perform. The firm raised its valuation range for shares to $14-$15 from $12-$13. 

Full Disclosure: None.
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