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Sunday, July 12, 2009

Berkshire, CapitalSource, Schwab: U.S. Equity Market Preview

July 12 (Bloomberg) -- Shares of the following companies may have unusual moves in U.S. trading tomorrow. Stock symbols are in parentheses, and prices are as of 5:30 p.m. in New York on July 10, unless otherwise specified.

Berkshire Hathaway Inc. (BRK/A US): Warren Buffett’s conglomerate may rise as the recovering U.S. economy boosts the value of its more-than-$50 billion equity portfolio and other investments, Barron’s reported, without citing anyone. Berkshire Hathaway Class A stock fell $475, or 0.5 percent, to $85,125.

BRF Brasil Foods SA (PDA:US): The company formerly known as Perdigao SA, which is taking over Sadia SA, may rise as 36 percent as growth in Brazilian consumption boosts sales, Barron’s reported, citing Renato Prado, an equity analyst at Fator Corretora in Sao Paolo. BRF Brasil’s American depositary receipts, which each represent two ordinary shares, fell 76 cents, or 1.9 percent, to $38.69 on July 10.

CapitalSource Inc. (CSE:US) fell 10 percent to $4.06. The loan provider to small and mid-sized businesses said it plans a public offering of about 17.5 million shares of its common stock.

Charles Schwab Corp. (SCHW:US): The largest independent brokerage by client assets may be undervalued as the company cuts fees and offers new products to attract investors, Barron’s reported. Schwab fell 14 cents to $16.47.

Hoku Scientific Inc. (HOKU:US): The maker of fuel-cell and solar-power components said it retained Deutsche Bank Securities Inc. as its financial adviser to seek a possible sale.

RSC Holdings Inc. (RRR:US): The second-largest construction-equipment rental company in North America may rise to $15 within the next year amid a construction slump as petrochemicals, food processing and other industries spend more on equipment, Barron’s reported, citing Vance Edelson, an analyst at Morgan Stanley in New York. RSC gained 28 cents to $6 on July 10.

State Street Corp. (STT:US): The largest money manager for institutions paid $60 million to repurchase warrants held by the U.S., the U.S. Treasury said in a report on emergency aid to financial institutions.

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