Stocks to Watch: Downgrades Sink AnnTaylor, Talbots - TheStreet

The Day's Winners

Farmer Mac

(AGM) - Get Report

, the entity chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans, was up 9% to $27.80 after the company said it remains on track to meet or exceed analysts' expectations for both the second quarter and the full year. The company said that while there are no developments that could account for the recent decline in its stock, it wanted to reconfirm its financial condition and outlook. Farmer Mac has been under selling pressure lately, and the company has attributed the stock's pullback to short-sellers.

CACI International

(CACI) - Get Report

was up 10% to $32.56 after the company forecast fiscal 2003 revenue of $800 million to $830 million. CACI, a provider of information technology services focusing primarily on national defense, intelligence and civilian agencies, also projected earnings of $1.37 to $1.43 for fiscal 2003. The company expects first-quarter earnings of 30 cents to 32 cents a share and revenue of $182 million to $184 million.

Divine

( DVIND), a business software and services firm, was up 23% to $5.10 after the company said it secured equity financing totaling more than $61 million from a group led by Oak Investment Partners.

Overture Services

( OVER) renewed an affiliation agreement with the AltaVista Web site, sending the pay-per-click search engine's shares up 8% to $18.95.

The Day's Losers

AnnTaylor

(ANN)

was dropping 7% to $27.19 after Prudential downgraded the stock to hold from buy. The firm also downgraded

Talbots

(TLB)

to hold from buy, and that stock was lower by 4% to $35.90.

Footstar

(FTS) - Get Report

said its comparable-store sales for May fell almost 10% as business was hurt by unseasonably cold weather. The shoestore operator's shares were falling 8% to $23.55 on the news.

Integrated circuit and software provider

Genesis Microchip

( GNSS) was falling 27% to $17.17 after Prudential cut its earnings estimates on the company. Separately, CE Unterberg cut its rating on Genesis to market perform from buy.

Digital video provider

SeaChange

(SEAC) - Get Report

was down 14% to $8.92 a day after the company said it's delaying its first-quarter earnings release after losing a patent infringement case to

nCube Corp.