Stocks to Keep Your Eye On - 09/21/2007

Burlington Northern Santa Fe Corp. (BNI) climbed 36 cents to $81.30 in trading before the open of U.S. exchanges. Warren Buffett's Berkshire Hathaway Inc. raised its stake in the second- largest U.S. railroad by buying options for an additional 392,378 shares.

Carnival Corp. (CCL) rose for a second day, adding $1.87, or 3.9 percent, to $50.40 in trading before the open of U.S. exchanges. The world's largest cruise operator said yesterday that third-quarter profit rose more than analysts anticipated on increased demand for trips to Europe and Alaska.

Family Dollar Stores Inc. (FDO) The retailer known for selling items priced at $1 or less was cut to ``underweight'' from ``neutral'' by at JPMorgan. Analysts including Charles Grom cited decreasing profit margins, higher energy costs and rising competition from Wal-Mart Stores Inc. (WMT) and Dollar General Corp. (DG). The shares declined 78 cents, or 2.7 percent, to $28.29 yesterday.

IHS Inc. (IHS) added $1.90, or 3.7 percent, to %54.25 in trading before the open of U.S. exchanges. The data provider to oil and gas producers and their bankers boosted its revenue forecast, predicting sales during the current fiscal year will grow as much as 24 percent.

Keycorp (KEY) fell 34 cents to $33.84 before the open of U.S. exchanges. Ohio's third-largest bank was lowered to ``sell'' from ``neutral'' at Merrill Lynch & Co. Analysts Edward Najarian and Dwain Carryl cited ``weak'' revenue growth and higher credit losses.

Harman International Industries Inc. (HAR) slumped $13.20, or 12 percent, to $99.05 in trading before the open of U.S. exchanges. Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc. are reluctant to complete their $8 billion buyout of the maker of JBL and Infinity audio equipment, the Wall Street Journal reported, citing people familiar with the matter. Officials of KKR and Goldman Sachs wouldn't comment and Harman representatives didn't return calls, the Journal said.

Nike Inc. (NKE), rose $1.32, or 2.3 percent, to $59.64 in trading before the open of U.S. exchanges. The world's largest athletic-shoe maker said first-quarter profit jumped 51 percent on higher international sales and a tax gain. Excluding a 20 cent tax benefit, profit beat estimates by 5 cents, according to a Bloomberg survey of analysts.

Regions Financial Corp. (RF) The biggest bank based in Alabama, was cut to ``sell'' from ``neutral'' at Merrill Lynch. The bank's fee revenue is ``susceptible to capital markets weakness,'' analysts said. The shares dropped 70 cents, or 2.2 percent, to $31.39 yesterday.

Watch ZNH, FTK, ARJ for long breakouts.
Watch KBH, HAR, KG for short breakdowns.

-MM