Buyout Rumor Lifts Westwood One

Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts or are experiencing activist investor situations or some other market-moving events.

Rumors of the Day: According to a report in today's Wall Street Journal, Microsoft(MSFT Quote) is in talks about making an investment in Facebook.com. The investment could value the social-networking Web site at more than $10 billion. Microsoft shares added 42 cents, or 1.4%, at $29.50.

Deutsche Bank upgraded Westwood One(WON Quote) from hold to buy but lowered its price target from $4 to $3.50, saying its profile makes it a likely takeover target. Deutsche Bank cited, "1) likely new CBS deal, 2) feasibility of sale to private equity and 3) signs that at least the network business (45% of revenue) is turning up." The upgrade sent shares higher by 17 cents, or 5.7%, to $3.15.

Today's Hot List: Lennar(LEN Quote) delivered a steep third-quarter loss Tuesday. The homebuilder lost $3.25 a share; analysts were expecting a 55-cent EPS loss. Revenue fell 44% to $2.34 billion, slightly shy of the $2.39 billion consensus estimate. Lennar CEO Stuart Miller said, "It is already well documented that the housing market has continued to deteriorate throughout our third quarter. Heavy discounting by builders, and now the existing-home market as well, has continued to drive pricing downward." Shares fell $1.01, or 4.2%, to $23.17.

Lowe's(LOW Quote) said drought conditions in the mid-Atlantic, Southeast and West regions of the country have negatively impacted the performance of outdoor product sales. The company now expects to deliver earnings for the fiscal year at the low end or slightly below its prior guidance of $1.97 to $2.01. The Wall Street consensus is $1.99. Shares dropped $2.06, or 6.7%, to $28.49.