StreetInsider.com Unusual 11 Mid-Day Movers 05/22/2007

May 22, 2007 11:43 AM EDT

Fremont General Corporation (NYSE: FMT) 40.4% HIGHER; Announced the sale of the Company's commercial real estate lending business, the sale of a minority interest in the Company and the appointment of new senior management. iStar Financial Inc. (NYSE: SFI) is buying the commercial real estate lending business and retaining an interest in the commercial real estate loan assets of Fremont General Corporation (NYSE: FMT) for an aggregate net purchase price of approximately $1.9 billion in an all-cash transaction.

NetBank, Inc. (Nasdaq: NTBK) 33.8% LOWER; Company continues to fall after yesterday's announcement with EverBank, which would result in a loss on sale of between $60 and $70 million at close. Also, this morning, Friedman Billings downgraded the stock.

MGM Mirage (NYSE: MGM) 29% HIGHER; Kirk Kerkorian's Tracinda Corp, a 56% holder, announced that it intends to enter into negotiations with MGM MIRAGE to purchase the Bellagio Hotel and Casino and City Center properties. Tracinda also wishes to pursue strategic alternatives with respect to its investment in MGM MIRAGE which may include financial restructuring transactions involving all or a substantial portion of the remainder of the Company.

Advancis Pharmaceutical (Nasdaq: AVNC) 27% HIGHER; Announced that the Company's once-daily Amoxicillin PULSYS New Drug Application (NDA) has been accepted for filing by the U.S. Food and Drug Administration (FDA).

KongZhong Corporation (Nasdaq: KONG) 25% LOWER; Reports Q1 EPS of $0.06, in-line with estimates. Revenues were $20.13 million vs. $20.4 million consensus. Total revenues for the first quarter decreased 28% from the same quarter of 2006 and decreased 15% sequentially to $20.13 million. US GAAP net income totaled $1.56 million in the first quarter of 2007, a decrease of 82% from the same period of last year and a 57% decrease sequentially. Diluted US GAAP earnings per ADS were $0.04 for the first quarter. Non-GAAP income in the first quarter of 2007 was $2.13 million, a 73% decrease from the same period in 2006 and a 49% decrease from the previous quarter. Diluted Non-GAAP earnings per ADS were $0.06.

Spansion (Nasdaq: SPSN) 8.5% HIGHER; Stock up on heavier-than-normal volume today. The ramp-up appears to be related to this morning's news that STMicroelectronics (NYSE: STM), Intel (Nasdaq: INTC) and Francisco Partners entered into a definitive agreement to create a new independent semiconductor company, which will focus on supplying flash memory solutions.

The Children's Place Retail Stores (Nasdaq: PLCE) 8% HIGHER; Reports Q1 revenues of $478.9 million vs. consensus of $480.84 million. consolidated comparable store sales increased 4% in the quarter. The Children's Place brand's comparable store sales increased 2% on top of last year's 9% increase and Disney Store's comparable store sales increased 8% on top of last year's 16% increase. Also, the Company believes that the discussions between the Company and Disney (NYSE: DIS) are nearing conclusion and the parties have exchanged drafts of a letter agreement which contemplates that various modifications would be made to the license agreement.

United Natural Foods (Nasdaq: UNFI) 7.5% LOWER; Reports Q3 EPS of $0.32, 3 cents worse than estimates. Revenues were $732.5 million vs. $733.62 million. Company also revises FY EPS guidance lower.

Universal Corp. (NYSE: UVV) 6.2% LOWER; Reports Q4 EPS of $0.65, versus a loss of $0.98 last year. Revenues in the quarter were $504 million, up 24% from the same period last year.

Sturm, Ruger & Co. Inc. (NYSE: RGR) 5% LOWER; Stock lower with no specific news releases. Today's move could be attributed to profit taking - the stock has gained approx. 30% since March 5th, 2007.

Sasol Ltd. (NYSE: SSL) 5.4% LOWER; The Oryx gas-to- liquids (GTL) venture in Qatar, in which Sasol has a 49% shareholding, has now been operational for more than three months. As to be expected with a facility of this size and complexity, the plant has experienced start-up operational challenges, most of these limited to individual pieces of equipment. However, operating rates are currently also limited to levels lower than planned.

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