STOCKS NEWS US-A-Power shrs down, to sell $40 mln in notes

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1049 ET 19June2009-A-Power shares down, to sell $40 mln in notes
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Shares of A-Power Energy Generation Systems Ltd (APWR.O) fell on Friday,
after the company agreed to sell about $40 million in senior convertible notes,
plus warrants, to several institutional investors.

It expects to use the proceeds to expand production capacity and enhance
research and development.

For details, see [ID:nBNG480086]

Shares dropped 10.2 percent to $8.68.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1039 ET 19June2009-FBR downgrades dry bulk sector to 'underweight'
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Friedman Billings Ramsey downgraded the U.S. dry bulk shipping sector to
"underweight" from "market weight" on Friday, expecting the market to balance
in 2013 because of higher supply-growth forecasts. It previously expected the
market to balance in 2012.

The firm sees significant challenges for the industry in the second half of
2009 based on high levels of Chinese iron ore inventories.

For details, see [ID:nBNG468037]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1028 ET 19June2009-Oculus shrs soar on data from acne treatment study
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Shares of Oculus Innovative Sciences Inc (OCLS.O) soared on Friday, after
the biopharmaceutical company reported "promising results" from a feasibility
study for acne treatment with an enhanced formulation of its Microcyn skin and
wound gel.

The company said data from the 40-patient study warranted further
examination and that it intended to explore prospective partnerships for the
gel.

For details, see [ID:nBNG479741]

The stock advanced 12.5 percent to $3.78.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1121 ET 19June2009-Markets rise on economic optimism
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Major U.S. indexes rose on Friday as a recent round of encouraging economic
data beckoned investors back for a second straight day.

The International Monetary Fund underscored the sense of improving
fundamentals after First Deputy Managing Director John Lipsky said the fund may
lift its 2010 growth forecast for the world economy amid signs the decline in
global output was moderating.

For details, see [ID:nN19440982]

The Dow Jones industrial average .DJI rose 0.3 percent to 8,584.93 while
the S&P 500 .SPX gained 0.6 percent to 923.78, and the Nasdaq .IXIC was up
1.3 percent to 1,831.42.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net; Editing by
Kenneth Barry
1013 ET 19June2009-Barclays: Put spreads look attractive for rails
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Cheap volatility along with a rich skew makes put spreads attractive to
capture short-term weakness in railroad stocks Union Pacific Corp (UNP.N) and
Norfolk Southern Corp (NSC.N), a team of Barclays Capital analysts said in a
note this week. Union Pacific and Norfolk are among the handful of stocks in
the S&P 500 where the three-month implied volatility is trading at a discount
to the realized volatility, they said. They recommend buying the UNP August
$44-$49 put spread for a cost of $1.70 and purchasing the NSC September $31-$36
put spread for a net payment of $1.60. "Rail stocks remain more than 40 percent
below their high in July 2008," the note said. The Barclays air freight and
ground transportation analyst believes the acceleration of volume weakness will
likely present another significant earnings challenge for the stocks next
quarter. The analyst expects earnings to come in below consensus estimates and
sees the biggest miss potential in these two stocks for the second half of this
year.

Reuters Messaging: doris.frankel.reuters.com@reuters.net