US HOT STOCKS: Itron, Rambus, QAD, Reliant -2-

Among the companies whose shares are actively trading in Wednesday’s session are
BCE Inc. (BCE), General Motors Corp. (GM) and Citigroup Inc. (C).

The $42 billion takeover of BCE ($20.44, -$10.84, -34.65%) was jeopardized
Wednesday morning when the company warned it might not be able to meet the
conditions of the merger agreement. Investors bet that the planned leveraged
buyout of Canada’s biggest phone company by the group led by Ontario Teachers’
Pension Plan is all but dead. In a press release, BCE suggests the deal could
still be salvaged, but others rule out the possibility.

General Motors ($4.88, $1.32, 37.08%) and Ford Motor Co. (F, $2.07, $0.41,
24.70%) shares jumped in recent trading as a Deutsche Bank analyst said it’s
looking more likely the nation’s two largest auto makers are going to get a
federal bailout.

Shares of Citigroup (C, $6.90, $0.82, 13.46%) rose, even as other bank stocks
fell, after news reports confirmed that Mexican banking tycoon Carlos Slim’s
investment firm purchased about $150 million in Citi shares. Shares in other
banks, by contrast, largely fell across the board. The government’s bailout of
Citigroup raised investor concern that other large banks could eventually see
another round of government capital infusions, which dilute existing
shareholders. Bank of America Corp. (BAC, $14.29, -$0.51, -3.45%) and JPMorgan
Chase & Co. (JPM, $29.46, -$0.31, -1.04%) were among the decliners.

LandAmerica Financial Group Inc. (LFG, $0.20, -$0.71, -78.02%) filed for Chapter
11 bankruptcy protection Wednesday as part of a deal that would turn over three
of its subsidiaries to Fidelity National Financial Inc. (FNF, $12.32, $2.13,
20.90%) for $298 million. Other title insurers such as First American Corp. (FAF,
$22.99, $4.49, 24.27%) and Stewart Information Services Corp. (STC, $10.99,
$1.98, 21.98%) rose, as the loss of a competitor in the title-insurance arena
could give the remaining companies access to a greater share of the market.

Despite seeings their credit ratings downgraded by Moody’s Investors Service,
home builders KB Home (KBH, $11.99, $1.54, 14.74%), D.R. Horton Inc. (DHI, $7.48,
$0.58, 8.41%) and Pulte Homes Inc. (PHM, $10.53, $0.71, 7.23%) rose on the
possibility of being approved for assistance from the federal government. The
companies have been recording steep losses in a slowed housing market and tight
credit environment.

Borders Group Inc.’s (BGP, $0.97, -$0.71, -42.26%) saw its shares head south
Wednesday after the bookseller reported massive losses, dwindling sales, said it
was no longer contemplating a sale of the company, and learned it would soon be
booted out of the S&P MidCap 400.

Shares of outdoor advertising companies rose Wednesday, paring some of their
steep declines from previous weeks. Lamar Advertising Co. (LAMR, $13.97, $0.78,
5.91%), Clear Channel Outdoor Holdings Inc. (CCO, $6.85, $0.70, 11.38%) and
China-based Focus Media Holding Ltd. (FMCN, $7.69, $0.39, 5.34%) were among the
gainers. “The stocks had overcorrected because of their high leverage and
negative growth outlook for revenue in 2009,” Soleil Securities senior media
analyst Lauren Martin told Dow Jones Newswires.

Shares of several hotels pared some of their recent losses Wednesday as the
falling price of gasoline and the U.S. Federal Reserve’s recently unveiled plans
to aid credit markets boosted investor confidence. “A feeling of relief is
setting in slowly, and the stocks are responding to that,” Gabelli & Co. analyst
Amit Kapoor said in an interview. Orient Express Hotels Ltd. (OEH, $6.16, $1.29,
26.49%),Starwood Hotels & Resorts Worldwide (HOT, $16.25, $1.72, 11.84%), Wyndham
Worldwide Corp. (WYN, $4.51, $0.36, 8.67%) and Marriott International Inc. (MAR,
$15.95, $1.15, 7.77%) were among the gainers.

Stifel Nicolaus upgraded the stock-investment ratings on 12 real-estate
investment trusts to buy, including AMB Property Corp. (AMB, $17.58, $2.14,
13.86%) and SL Green Realty Corp. (SLG, $17.78, $2.09, 13.32%). Investors are
selling REITs indiscriminately, and that presents a buying opportunity, Stifel
Nicolaus said.

Other Stocks in Focus:

Shares of Andersons Inc. (ANDE, $12.52, -$3.36, -21.16%) fell to a low not seen
since 2004 as the agriculture company cut its guidance to a level that indicates
it will swing to a fourth-quarter loss and warned that its plant nutrient sector
was still unpredictable and could deteriorate further.

Blue Coat Systems Inc. (BCSI, $8.42, -$0.80, -8.68%) late Tuesday reported it
swung to a fiscal second-quarter net loss. Following the report, Pacific Crest
lowered its investment rating to sector perform from outperform.

Moody’s Investors Service lowered its credit rating on Brunswick Corp. (BC,
$2.88, -$0.16, -5.26%) further into junk territory, due to a rapid fall in
discretionary consumer spending and the firm’s belief the recreational products
manufacturer could violate a leverage covenant in the fourth quarter.

CapLease Inc. (LSE, $1.73, -$0.22, -11.08%) said it will reduce its annual
dividend, starting in 2009 to retain cash flow to further reduce leverage through
accretive debt repurchases, strengthen the balance sheet and enhance long-term
stockholder value. It expects 2009 common stock dividend rate of 20 cents a
share. The company said it pay fourth-quarter dividends for 2008.

Coldwater Creek Inc.’s (CWTR, $1.81, $0.28, 18.30%) net loss narrowed, but
revenue and margins slid as the company struggled with a decrease in store
traffic and lower direct channel sales. Chief Executive Daniel Griesemer that
while the company wasn’t happy with its results, the performance exceeded the
company’s revised guidance from earlier this month.

Dell Inc. (DELL, $10.96, $0.54, 5.18%) said it is offering leasing and financing
incentives and cutting prices up to 17% in an effort to jump-start sales to
business and public entities that are trimming capital expenditures. With the
announcement, Dell joins software giant Microsoft Corp. (MSFT, $20.31, $0.32,
1.60%) and business-software maker SAP AG (SAP, $35.13, -$0.40, -1.13%), which
are offering similar promotions.

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UBS lowered its investment rating on ICF International Inc. (ICFI, $19.15,
-$1.28, -6.27%) to neutral from buy, primarily on valuation. The company said
fundamentals look intact, but the solid performance and prospects of ICF’s core
business are now more fully discounted in the stock.

UBS raised its investment rating on Itron Inc. (ITRI, $45.03, $3.15, 7.52%) to
buy from neutral citing the 58% drop in share value since the beginning of
September. Itron, which makes data gathering tools for utilities, may also stand
to benefit from an Obama-Biden stimulus plan, which is widely expected to make
major investments in energy projects, said UBS, which estimates 80% of the
company’s sales are in stable demand sectors.

J. Crew Group Inc.’s (JCG, $10.27, -$0.78, -7.06%) net income fell 29% as
same-store sales fell and direct sales via Internet and phone posted a smaller
gain than in the prior year. Shares of J.Crew have tumbled 77% over the past year
as the clothing retailer again cut its 2008 fiscal-year guidance.

Rambus Inc. (RMBS, $8.40, $1.45, 20.79%) shares continued rising Wednesday after
the chip-maker received a positive pre-trial ruling in California in its patent
case against some of the largest semiconductor companies in the world. The growth
comes on top of an 18% climb Tuesday. Last Friday, shares hit a new 52-week low
of $4.95 before bouncing back on the court’s ruling.

Stifel Nicolaus cut its investment rating on shares of Pennsylvania Real Estate
Investment Trust (PEI, $4.31, -$0.41, -8.69%) to hold from buy, citing
“increasing execution and financing risk in a declining retail environment.” The
firm added that “negative news should outweigh the good news for the foreseeable

QAD Inc. (QADI, $3.69, -$0.41, -10.00%) reported fiscal third-quarter results
below analysts’ estimates. The enterprise software and services provider also
lowered its fiscal 2009 earnings and revenue forecast.

Stifel Nicolaus also cut Ramco-Gershenson Properties Trust’s (RPT, $4.10, -$0.35,
-7.87%) stock-investment rating to hold, saying the “accelerating decline in
Michigan’s economic prospects due to potential auto manufacturer failures, as
well as relatively high mid/junior retailer box exposure could present unexpected
challenges.”

Reliant Energy Inc. (RRI, $5.05, $0.62, 14.00%) said it won’t proceed with loan
financings from First Reserve Corp. and a unit of Goldman Sachs Group Inc. (GS,
$75.49, $3.71, 5.17%), saying it believes it has adequate liquidity.

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