Monday's relatively quiet after-hours session saw mixed results, and among the big winners was rechargeable-battery maker China BAK Battery ( CBAK), which leapt more than 30% on the possibility of a big-time deal. BAK said it inked a non-binding letter of intent toward a signing a definitive supply contract with computer giant Hewlett-Packard ( HPQ). Should an agreement result, BAK will allocate at least half of its monthly cylindrical lithium-ion battery-cell manufacturing capacity to H-P, which will use the products in its notebook-computer batteries. BAK shares were recently up $1.28 to $5.49; H-P ticked up 27 cents at $48.70. STEC ( STEC), which makes flash-memory products, among other things, surged 8.3% to $7.31 on better-than-expected earnings. The Santa Ana, Calif., company posted a nickel-a-share profit, or 3 cents higher than Wall Street expectations, according to Thomson Financial. Third-quarter guidance also leans to the higher end of consensus. Shares of Luminent Mortgage ( LUM), however, took more punishment after the beleaguered mortgage investor reported it has gotten default notices from eight more repo lenders. These, in turn, triggered a default under the asset-backed commercial paper issued by a Luminent affiliate and may catalyze another default regarding an indenture relating to $90 million in Luminent convertible senior bonds. The news come on the heels of last week's damaging revelation that Luminent received
default notices from two other repo lenders . Shares of the San Francisco-based company plummeted 39.8% to 59 cents.
Physicians Formula ( FACE), a cosmetics maker, plunged 15.8% after slashing at least a dime off its full-year earnings outlook to between 66 cents and 72 cents a share (adjusted). Analysts are looking for 66 cents. The California-based company also predicted a third-quarter bottom line of break-even to a 3-cent loss against the Street's upside projections. Second-quarter income came in ahead, but shares were still off $2.20 to $11.72. Elsewhere, security-software company VeriSign ( VRSN), based in California, proposed to offer $1.1 billion in junior subordinated convertible debentures. The initial purchaser has an option for $200 million more to cover overallotments. The funds will primarily go to a share buyback. VeriSign stock fell 39 cents to $29.26.