Hot Stocks of the Week: ADS VMW PAS TIVO

On Monday, Blackstone Group LP said it didn't expect to close its $6.4 billion purchase of Alliance Data, a credit card services company. Shares of Alliance Data finished 35 percent lower at $42.48, in nearly 11 times average trading volume and set a 52-week low of $39.54.

Alliance Data then said on Wednesday it sued affiliates of the Blackstone Group over the deal's collapse, wanting to force Blackstone to carry out terms of the deal to buy Alliance for $81.75 per share.

Separately, after Wednesday's closing bell, Alliance forecast a 2008 profit above expectations, but posted a 14 percent lower fourth-quarter profit because of higher expenses.

Shares surged on Thursday to finish around 18 percent higher at $50.57, when at least five analysts upgraded the stock.

On Friday, shares rose $3.33, or 6.6 percent, to $53.90, down around 17 percent for the week.

Meanwhile, shares of VMware, which makes virtualization software, plunged by more than 30 percent to end at $54.87 in five times average trading volume on Tuesday.

Fourth-quarter sales missed Wall Street expectations, and its 2008 revenue outlook missed estimates, as well.

Shares edged higher as the week continued, and ended up $1.18, or 2.1 percent, to $57.85 on Friday. Since Monday's $83 closing price, the stock lost around 30 percent.

Soft drink bottler PepsiAmericas Inc. forecast fiscal year 2008 earnings below expectations on Wednesday, even after reporting a 61 percent higher fourth-quarter profit.