Hot stocks: Courting losses

May 4, 2001: 4:43 p.m. ET

Rambus tumbles after losing lawsuit but Somnus surges on buyout

NEW YORK (CNNfn) - Shares of Rambus tumbled 25 percent Friday after a U.S. District Court ruling dismissed the three remaining claims of patent infringement it brought against a chip maker. But shares of Somnus Medical Technology jumped 25 percent after the company, which makes medical devices that treat upper airway disorders, received a buyout offer.

Friday's losers
Rambus. (RMBS: down $3.55 to $14.60, Research, Estimates) The maker of technology to speed the performance of memory microchips said it plans to appeal a U.S. District Court ruling that dismisses the three remaining claims of patent infringement it brought against German semiconductor maker Infineon Technologies AG. (IFX: up $2.15 to $42.40, Research, Estimates)

Talk America Holdings (TALK: down $0.44 to $1.96, Research, Estimates). The telephone services company posted a first-quarter net loss as expenses rose and sales fell about 11.7 percent. Formerly Talk.com, the company showed a profit in the year-earlier period.

Handspring (HAND: down $1.42 to $13.03, Research, Estimates). The company's chief executive said she expects the hand-held computer maker to report fiscal fourth-quarter revenue at the low end of her range of estimates.

Starbucks (SBUX: up $0.04 to $18.99, Research, Estimates). The coffee retailer reiterated its expectations for the year's revenue growth and earnings per share targets, despite comparably weak April sales. It said sales at company-operated stores open 13 months or more rose 2 percent for the four-week period.

PacifiCare Health Systems (PHSY: down $2.06 to $27.04, Research, Estimates). The managed care company reported lower first-quarter earnings late Thursday that still topped the First Call consensus estimate by 5 cents a share. The decline reflected rising health care costs and the impact of a change in the company's business strategy.

McLeodUSA (MCLD: down $0.74 to $6.03, Research, Estimates). The local and long distance telecommunication services provider cut its revenue and cash flow forecasts for 2001 due to the slowing economy, pricing pressures and delayed customer purchases.

Wind River Systems (WIND: down $0.66 to $25.52, Research, Estimates). The provider of embedded software services and systems said late Thursday that a slowdown in near-term consumer spending hurt first-quarter revenue. It also announced it will be cutting 12 to 15 percent of its work force worldwide.

Friday's winners
Somnus Medical Technologies. (SOMN: up $1.22 to $2.87, Research, Estimates) The medical devices maker said Gyrus Group, which makes electrosurgical systems, has agreed to buy it for $55.7 million, or $3.11 per share.

Viacom (VIA: up $0.34 to $53.20, Research, Estimates). The media company, which runs CBS, rose after the conclusion of the hit "reality TV" series "Survivor II," which took market share from NBC, the network that historically dominates Thursday night television.

CacheFlow (CFLO: up $1.48 to $8.53, Research, Estimates). The Web site service provider said it had named Robert Verheecke, formerly chief financial officer at ECnet, as its chief financial officer

J.D. Edwards (JDEC: up $2.51 to $10.60, Research, Estimates). The business software maker said results for its fiscal second quarter will top expectations. It also said it has cut 400 jobs, or about 8 percent of its work force, as part of a previously announced restructuring plan.

Charter Communications (CHTR: up $1.22 to $22.97, Research, Estimates). Lehman Brothers upgraded the stock to "strong buy" from "buy." Earlier this week, the cable television company reported sharply better results due to gains in digital subscribers and its high-speed Internet service.

Razorfish (RAZF: up $0.03 to $1.25, Research, Estimates). The Internet consulting firm reported a first-quarter loss that was narrower than expected and named Jean-Philippe Maheu as CEO, replacing company co-founder Jeff Dachis.

Sapient (SAPE: up $1.66 to $13.90, Research, Estimates). The Web-based development and consulting company recorded a first-quarter loss of 5 cents a share, a penny wider than First Call's consensus estimates on revenue of $109.1 million.

RF Micro Devices (RFMD: up $4.40 to $32.42, Research, Estimates). JP Morgan upgraded the company, which makes equipment for wireless products, to "buy" from "long-term buy."

Bristol-Myers Squibb (BMY: up $0.77 to $55.82, Research, Estimates). Procter & Gamble (PG: unchanged at $64.27, Research, Estimates) and Japan's Kao Corp. are expected to submit final bids to acquire Bristol-Myers Squibb's Clairol hair-care business, the Wall Street Journal reported Friday. Citing people familiar with the matter, the paper said Clairol could fetch $4 billion to $5 billion.

-- from staff and wire reports