China Techfaith, Lehman, Staples, WellCare: U.S. Equity Movers

By Lynn Thomasson

Aug. 19 (Bloomberg) -- The following companies are having unusual price changes in U.S. trading. Stock symbols are in parentheses, and share prices are as of 9:40 a.m. in New York.

American International Group Inc. (AIG US) dropped the most in the Dow Jones Industrial Average, losing 4.9 percent to $20.55. The biggest U.S. insurer by assets faces a ``downward spiral'' of more credit losses and may be forced to raise capital on a ``large-scale,'' Goldman Sachs Group Inc. analysts said in a research report.

China Techfaith Wireless Communication Technology Ltd. (CNTF US) tumbled 23 percent to $2.07, the biggest loss since its initial public offering three years ago. The Chinese maker of mobile phones said third-quarter revenue may be as low as $30 million. Susquehanna Financial Group analyst Adele Mao predicted third-quarter sales of $56.2 million.

Lehman Brothers Holdings Inc. (LEH US) slipped 6.6 percent, the most in a week, to $14.04. The fourth-largest U.S. securities firm may post $4 billion of credit writedowns and report a third- quarter loss of $3.30 a share, JPMorgan Chase & Co. analysts said. The quarterly loss would be three times the average analyst estimate in a Bloomberg survey.

Staples Inc. (SPLS US) dropped the most since October 2002, sliding 7.9 percent to $22.63. The world's largest office- supplies retailer said second-quarter earnings per share probably fell 15 percent on a drop in North American sales, as customers shopped less frequently and bought less. Sales will increase on a ``low single-digit'' percentage basis in 2008, Staples said.

WellCare Health Plans Inc. (WCG US) increased 17 percent to $44.72, a two-month high. The managed-health-care provider said it will pay $35.2 million in connection with a Medicaid fraud investigation, according to a government filing of the agreement with U.S. prosecutors. The deal signals a ``catastrophic outcome is very unlikely'' for the company, Oppenheimer & Co. analyst Carl McDonald said.

To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net.