Data Feed

Fed Spook
The market is jittery as attention has been turned the big meeting this morning with Fed chief Bernanke, Treasury’s Paulson & Senate Banking chair Dodd. There will be much speculation up to the scheduled press conference expected at 10, which will help to support bond prices some, although have already backed off the best levels. The meeting will lessen any impact from Lacker’s later (12:30) speech & following Q&A.

Gasco Energy (GSX) provides an interim operations update on its Riverbend Project in Utah. Commenting on the Federal #14-31, GSX CEO said, “We are pleased with the results from the Mancos pay. The initial gas and fluid rates are in line with what we had modeled for our first Mancos test…”… Iron Mountain (IRM) announces that its Connected Backup for PC and LiveVault Server Backup solutions are now available directly to Canadian businesses via a new data center in Toronto, Canada… TriQuint Semiconductor (TQNT) announces that it has entered into a definitive agreement to acquire Peak Devices in a cash transaction expected to close within the qtr. TQNT expects the acquisition to be accretive to earnings in 2008… The Committee to Enhance Topps announces that Glass Lewis & Co. has recommended that stockholders of The Topps Company (TOPP) vote Against the Merger Agreement between TOPP and entities owned by Michael Eisner and Madison Dearborn Partners at the Special Meeting of the co’s stockholders scheduled to be held on Aug 30, 2007.

Kaufman sees TTWO reporting total rev of $210 mln. GAAP EPS losses are expected to be $0.90, and non-GAAP EPS losses are expected to be $0.70. Given the co’s recent challenges, firm maintains their HOLD rating; however, they note at current levels TTWO is trading at 1.0x rev plus cash… Firm sees ATVI rev of $257 mln, GAAP EPS losses of $0.04, and non-GAAP EPS losses of $0.03. They note recent upside was due primarily to Guitar Hero, but every other game has pretty much hit its numbers as well… For ERTS, firm sees total rev of $880 mln, GAAP EPS losses of $0.66, and non-GAAP EPS of $0.16. Firm believes ERTS will outperform the industry in the second half of its fiscal 2008… For THQI, firm sees rev in fiscal 2Q08 of $238 mln, GAAP EPS of $0.03, and non-GAAP EPS of $0.10. They believe THQI should make its fiscal 2Q08 numbers; it will have a lot of product at market, and guidance for the year could well be conservative.

Gapping up: BAY +5.5%, CFC +4.6%, ATML +4.1%, MT +2.9%, BIDU +1.6%, COF +1.4%, EBAY +1.4%, CROX +1.2%… Gapping down: CSG -3.9%, TOL -2.5%, REP -2.0%, GFI -2.0%, DELL -1.2%.

Buyers: Global Partners LP (GLP 28.86) CEO bought 1,600 shares at $26.49… eCom Ventures (ECMV 19.32) 10% Owner JLF Asset Mgmt bought 16K shares at $19.42… Incyte (INCY 5.62) CEO bought 16,665 shares at $5.47… National CineMedia (NCMI 24.49) Chairman bought 8,300 shares at $24.00… American Reprographics (ARP 21.02) CEO bought 24K shares at $20.92… Mueller Water Products (MWA-B 11.55) CFO bought 5K shares at $11.60… S1 (SONE 7.35) 10% Owner Starboard Value & Opportunity Master Fund bought 62,500 shares at $7.10… Dorchester Minerals LP (DMLP 19.69) CEO bought 10,600 shares at $19.43… Silicon Image (SIMG 5.34) CEO bought 20K shares at $5.31… JMP Group (JMP 8.17) President bought 17,900 shares at $7.91… RPC (RES 13.46) 10% Owner RFT Investment Co bought 345,200 shares at $12.56…United Retail Group (URGI 9.53) 10% Owner Crescendo Investments III LLC bought 70,100 shares at $9.06… Emeritus (ESC 23.95) Director bought 7,900 shares at $21.48…PNM Resources (PNM 23.95) Chairman bought 5,800 shares at $23.42… Echostar (DISH 38.70) Director bought 6K shares at $38.17. Sellers: RCN (RCNI 13.34) 10% Owner Tudor Investment sold 7,034,825 shares at $12.00… Crown Castle Int’l (CCI 36.34) Director sold 25K shares at $36.31… The Knot (KNOT 22.07) Chief Operating Officer sold 15K shares at $21.00; CFO sold 10K shares at $21.38… TomoTherapy (TTPY 24.40) Director sold 565,991 shares at $19.00… Synnex (SNX 21.13) 10% Owner Silver Star Developments sold 18,600 shares at $22.00.

Sirtris Pharmaceuticals (SIRT) announces the initiation of a Phase 2a clinical trial in India to evaluate its SRT501 product candidate in patients with Type 2 Diabetes whose glucose levels are not adequately controlled by their metformin treatment, a current first-line therapy for such patients… Visual Sciences (VSCN) announces that VistaPrint (VPRT) has deployed its Visual Site application to analyze customer interaction and behavior on the co’s Web sites… NaviSite (NAVI) announces that it was chosen to migrate and upgrade the Oracle (ORCL) systems at Aviza Technology (AVZA). AVZA selected NAVI’s migration and integration expertise to facilitate the upgrade of its ORCL systems throughout the co’s worldwide offices… L-1 Identity Solutions (ID) has received a seven year contract with an estimated value of more than $11 mln from the State of Montana, Montana Department of Justice, Motor Vehicle Division, to provide a digital driver’s license issuance system that integrates multiple identity-centric processes for ensuring that driver’s license applicants receive a secure and unique driver’s license or State identification card… Comtech Telecommunications (CMTL) announces that its Maryland-based subsidiary, Comtech Mobile Datacom, received a $1.3 mln contract from Optus Networks to provide satellite network infrastructure equipment and related technical services in support of the Australian Defense Force… Hythiam (HYTM) announces that leading Panamanian medical facility Centro Medico Paitilla has licensed the Prometa Treatment Programs for alcoholism and stimulant addiction to service the Central and South American marketplace… Computer Sciences (CSC) announces that a global provider of healthcare and other insurance products has selected CSC’s business process outsourcing services to support its structured settlements business. The insurer will replace its manual processes and a non-strategic system with CSC’s platforms and services… Benihana (BNHNA) updated development activity for its Benihana teppanyaki, RA Sushi, and Haru restaurant concepts… Abraxis BioScience (ABBI) and The Scripps Research Institute announce they have entered an exclusive licensing agreement for the worldwide development and commercialization of a novel epothilone therapeutic for the treatment of cancer… Genta (GNTA) announces that the first patients have been enrolled in the co’s confirmatory Phase 3 trial of Genasense Injection in advanced melanoma… ShoreTel (SHOR) and Black Box (BBOX) announce a strategic alliance in which Black Box will deliver ShoreTel’s IP telephony systems as part of its pioneering voice and data services.

COF Capital One: Stifel believes limited impact on shutting down GreenPoint (66.72 ) -Update-
Stifel notes COF announced yesterday it is closing GreenPoint, the Alt-A mortgage bank that it acquired from NFB just 9 months ago. Firm believes the decision, while unfortunate, was just a matter of time. Most Alt-A originators have already shutdown as the business model is currently broken. The secondary markets are in disarray, and the problems have escalated to include all non-agency product1 with no end in sight. Since COF has little appetite to balance-sheet these loans, mgmt had little choice. Firm believes this decision removes a major overhang. Firm believes COF is well positioned to manage through given its diverse funding base and strong core profitability.

FT: Dell (DELL) customers may have to wait until Oct for some of their new machines to be delivered, thanks to supply chain problems and trouble perfecting new paint jobs at the struggling computer maker; NY Times: Ford Motor (F) may have chosen the new owner for Jaguar and Land Rover by the time it reports its third-quarter results in Oct; WSJ: Service problems disabled ATMs and online accounts at Wells Fargo (WFC) for at least 24 hours starting Sunday afternoon, leaving some customers of the bank unable to get cash or use debit cards to pay for goods; Reuters.com: Wal-Mart Stores (WMT) said on Tuesday that it was now selling digital music downloads on its Web site without the customary copy-protection technology that limits where consumers can play the songs.

LLY Eli Lilly: new data suggest Cymbalta reduced pain in Fibromyalgia patients with and without depression (55.63 )
Co annonuces new data suggest that patients with fibromyalgia treated with 60mg or 120mg of Cymbalta experienced greater reduction in pain severity beginning one week after starting duloxetine than those taking placebo, as measured by the Brief Pain Inventory Average Pain Score. The study, which included patients with and without depression, also showed greater improvements in patients taking duloxetine than in those taking placebo in scores on the Patient’s Global Impression of Improvement questionnaire, which measures how the patient has felt overall since beginning to take the medication. At three months, patients treated with 60mg per day or 120mg per day of duloxetine showed significantly greater reduction in pain and improvement in PGI-I scores compared with patients taking placebo. At three months, more patients treated with either 60mg or 120mg of duloxetine showed significantly greater reduction in pain as measured by a 30 percent improvement in baseline BPI scores (50.7 percent and 52.1 percent, respectively) compared with patients taking placebo (36 percent).

SKS Saks beats by a penny beats by a penny; reports revs above consensus and preannouncement (17.94 )
Reports Q2 (Jul) loss of $0.14 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of ($0.15); revenues rose 14.9% year/year to $694.1 mln vs the $685.3 mln consensus and preannouncement of $687.9 mln.

Jefferies notes that although the Intel (INTC) deal is still negatively impacting Marvel’s (MRVL 17.10) profitability, they believe it is on track and MRVL is well positioned to regain profitability and revenue growth in CY08 as it benefits from multiple product cycles and drives operational leverage within its acquired assets. The firm expects inline CQ2 results but believe CQ3 revenue guidance will be below St. when MRVL reports on August 23rd… Wachovia notes that following earnings, based on their lower Lowe’s (LOW 28.52) EPS outlook for FY08 and increasingly challenging conditions in credit/mortgage markets, they are trimming their valuation range to $30-$33 (14x-15x FY08 EPS) from prior $35-$37. While shares are likely to remain in a trading range near-term, they continue to see long-term value at prices below $30… Jefferies names MSC Industrial (MSM 49.99) as their “Tuesday Value Pick” as they believe there are significant growth opportunities in the fragmented MRO market. They believe the recent decline in the MSM share price creates a buying opportunity with their $62 tgt implying over 25% upside.

TMA Thornburg Mortg: Liquidity situation improved, though at a high cost – RBC (13.50 ) -Update-
RBC notes TMA reported a $20.5 bln deleveraging (37% of earning assets), which will have a material impact on earnings and dividends. Firm is lowering their 2007 EPS est to $2.12 from $2.41 per share to reflect significant deleveraging and flat asset growth ahead, and lowering their 2007E dividend est to $2.04 from $2.52. Firm is lowering their 2008 EPS and dividend ests to $1.52 and $1.42. from $2.50 and $2.46, respectively. TMA shares will likely trade near 1.0x impaired book value ($12.40) until greater earnings clarity emerges, suggesting moderate downside from current price. Further downside possible given $12 bln in recourse funding remaining on balance sheet.

LEND Accredited Home Lenders trades $1 bln of loans with right to repurchase; transaction will reduce its exposure to margin calls on these loans (6.44 )Co announces that it has entered into an agreement to trade approx $1 bln of loans under a 90-day purchase agreement with an investor at an advance rate comparable to the advance rates the co is currently receiving from warehouse lenders. The initial settlement of a pool consisting of approx $500 mln closed on Aug 17, 2007, with the remaining loans trading every other week as borrowers make their first payments due under the loan. The final sale of the loans is expected to occur by Oct 2007. Under the agreement, LEND has the ability but not the obligation, in its sole discretion, to repurchase all of the loans traded through mid-Nov 2007 at a premium to the advance rate. If the loans are not repurchased by the co by mid-Nov, the co’s call right to repurchase the loans expires and the investor will keep the loans with limited recourse to the co Terms of the transaction include a small holdback reserve to allow the purchaser to reject loans that do not meet certain criteria. facilities. It is anticipated that the transaction will neither produce nor use any significant liquidity at time of funding, as the advance rates received by the investor are comparable to the advance rates currently received on this collateral by the co under its credit facilities. The transaction will reduce the Company’s exposure to margin calls on these loans since the agreement does not permit the investor to decrease the advance rate during the 90-day repurchase period.

LTD Limited: 2Q preview; at an inflection point – RBC (22.45 )
RBC notes LTD will report Q2 earnings Wed, Aug 22, after the markets close. Firm anticipates co will report 2Q07 EPS of $0.20 vs. $0.28 last year. While same-store sales were +2% in the quarter, margins remain under pressure as mgmt worked to clear out slow moving assortments. If there is a “silver lining” to the margin erosion, it can be seen when looking at inventory level. They note mgmt has successfully reduced inventory to (4)% per foot (ex-apparel). They view the reduction in inventory as significant as it should put the co in a better position as they enter the holiday season and should relieve the pressure to be as promotional as they have been over the last several months.

DKS Dick’s Sporting Goods beats by $0.07; issues upside Q3, Y08 guidance (55.58 )
Reports Q2 (Jul) earnings of $0.83 per share, $0.07 better than the Reuters Estimates consensus of $0.76; revenues rose 38.1% year/year to $1.01 bln vs the $0.99 bln consensus. Co issues upside guidance for Q3, sees EPS of $0.11-0.14, ex-items, vs. $0.07 consensus. Co issues upside guidance for FY08, sees EPS of $2.49-2.52, ex-items, from previous guidance of $2.39-2.42, ex-items, vs. $2.42 consensus.

AEO American Eagle beats consensus and recent guidance by a penny; guides Q3 EPS below consensus (23.01 )
Reports Q2 (Jul) earnings of $0.37 per share vs Reuters Estimates consensus of $0.36 and recent co guidance of $0.35-0.36; revenues rose 17.2% year/year to $706 mln, which the company preannouced on 8/8/07. Co issues downside guidance for Q3, sees EPS of $0.47-0.48 vs. $0.50 consensus.

Bloomberg.com reports on European bank exposure to subrime
Bloomberg.com reports that Landesbank Sachsen Girozentrale, the German state-owned bank getting emergency funding, has about 3 bln euros ($4 bln) in investments linked to U.S. subprime mortgages, according to a person with knowledge of the matter. The bank’s Ormond Quay finance unit holds the securities among its AAA rated asset-backed bonds, according to the person, who declined to be identified because the holding has not been made public. Ormond Quay invests in securities backed by residential mortgages, commercial property and credit cards. The Leipzig-based lender is the second German bank after IKB Deutsche Industriebank AG to get funding after a credit crunch prevented finance units from selling commercial paper, debt due in 270 days or less. SachsenLB obtained 17.3 bln euros in credit on Aug. 17 from German state-owned banks to repay debt from Ormond Quay… In addition, Belgium bank Dexia’s Chief Executive Officer Axel Miller said he expects “more months of uncertainty” as markets work through the impact of the U.S. sub-prime loans debacle. Dexia is the owner of U.S. bond insurer Financial Security Assurance Holdings Ltd.

TMA Thornburg Mortg: Liquidity crisis causes more damage – FBR (13.50 )
Friedman Billings notes on Aug 20, before the open, TMA announced that it sold $20.5 bln of AAA-rated securities, resulting in losses of $930 mln. With the asset sale, mgmt reduced the exposure to repurchase and commercial paper funding to $12.4 bln from the $32.9 bln. Although mgmt is taking the right steps to position the co for survival in the market turmoil, they believe the co could face further losses due to its continued exposure to short-term repo and commercial paper financing

COF Capital One: Stopping the slow bleed; GreenPoint Mortgage shuttered – FBR (66.72 )
Friedman Billings views COF’s announcement of the closing of GreenPoint Mortgage as relatively neutral. Some $650 mln ($1.70/share) of the $860 mln ($2.25/share) charge is non-cash resulting from goodwill impairment, which firm believes would have been incurred in 4Q07 consistent with a goodwill impairment test, while closing the platform will eliminate future mortgage banking-related losses. Given mgmt’s previous comments regarding the challenging mortgage market for the foreseeable future and difficulty in turning GreenPoint into an “endgame” player, they believed GreenPoint’s days were numbered, barring a dramatic turnaround in the mortgage market. Furthermore, closure of GreenPoint eliminates an operating risk that firm believes had a disproportionately larger negative impact on the stock price than the actual financial results.

Foreclosure activity increases 9% in July, according to RealtyTrac U.S. Foreclosure Market Report
RealtyTrac today released its July 2007 U.S. Foreclosure Market Report, which shows a total of 179,599 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported during the month, up 9% from the previous month and up 93% from Jul ‘06. The report also shows a national foreclosure rate of one foreclosure filing for every 693 households for the month. “While 43 states experienced year-over-year increases in foreclosure activity, just five states — California, Florida, Michigan, Ohio and Georgia — accounted for more than half of the nation’s total foreclosure filings,” said James Saccacio, CEO of RealtyTrac. “Meanwhile, a few states actually reported declining foreclosure activity on a year-over-year basis. Some of these states could be benefiting from increased interest from real estate investors who have pulled out of more volatile markets where home price appreciation seems to have hit its peak for the time being. In contrast, states like Texas, South Carolina and Utah have seen slow but steady price appreciation over the past five years, making them much more attractive and affordable.”

SPLS Staples reports in-line (23.31 )
Reports Q2 (Jul) earnings of $0.25 per share, in-line with the Reuters Estimates consensus of $0.25; revenues rose 10.6% year/year to $4.29 bln vs the $4.29 bln consensus. Staples expects to achieve earnings per share growth of approximately 15% for both the third quarter and the full year. This guidance excludes previously disclosed adjustments to 2006 earnings, for the 53rd week benefit, favorable tax events and the adjustment for prior years’ stock-based compensation. Staples anticipates low double-digit sales growth for the total company in the third quarter. Staples expects slightly negative to flat same store sales and mid single-digit sales growth in North American Retail, mid-teens sales growth in North American Delivery, and low to mid single-digit retail same store sales and high single-digit sales growth in local currency in International for the third quarter. For fiscal year 2007, adjusting for the extra week in 2006, Staples anticipates low double-digit sales growth for the total company and flat same store sales for North American Retail.

Upgrades: Friedman Billings upgrades ASML Holding (ASML 27.46) to Outperform from Market Perform and raises their tgt to $35 from $27. The firm also adds the co to their Top Picks list saying recent checks suggest that the current discussions between NAND Flash manufacturers and their lithography tool vendors are expected to lead to a sustainable recovery in lithography tool bookings beyond 3Q. Downgrades: Merrill Lynch downgrades American Axle & Manufacturing (AXL 23.84) to Sell from Neutral… Merrill Lynch downgrades AutoNation (AN 19.60) to Sell from Neutral. Miscellaneous: Wachovia initiates LandStar (LSTR 44.19) with a Market Perform saying they believe that Landstar shares are fairly valued given uncertainty in the credit market, which could constrain housing, automotive, and heavy-haul freight demand in the near- to intermediate term… Citigroup initiates Williams Sonoma (WSM 31.37) with a Sell and a $26 tgt… Citigroup initiates Bed Bath and Beyond (BBBY 33.85) with a Hold and a $37 tgt… Deutsche Bank reinstates PepsiAmericas (PAS 28.12) with a Hold and a $28 tgt due to input cost pressures and fair valuation vs. target… Deutsche Bank initiates Acadia Pharma (ACAD 15.07) with a Buy and an $18 tgt saying Acadia represents an attractive investment opportunity on the potential of its CNS/Neuro pipeline… BofA initiates Waste Connections (WCN 30.07) with a Neutral and a $32 tgt saying they consider WCN a well managed, regional player with defensive characteristics based on an attractive franchise sales mix. The firm says they see risk to the co’s premium multiple as sales growth slows.

VIA.B Viacom: MTV, RealNetworks join to battle iTunes – WSJ (37.56 )
WSJ reports in a bid to create a stronger competitor to Apple’s (AAPL) market-dominating iTunes Store, Viacom’s MTV Networks is set to announce today that it is merging its online digital music offerings into a joint venture with RealNetworks (RNWK), according to people familiar with the matter. Verizon Wireless, a venture of Verizon Communications (VZ) and Vodafone Group (VOD), has signed on to supply mobile distribution for the joint venture’s content, according to a person familiar with the matter. That could provide additional leverage against Apple, which angered many mobile carriers and consumers with the decision to make its iPhone compatible only with AT&T (T). The move appears to spell the end of MTV’s Urge digital service, launched in partnership with Microsoft (MSFT) last year. Microsoft has been heavily focused on its own Zune service in recent months, to the apparent detriment of Urge, which had few subscribers. MTV itself no longer invested significant resources in Urge after Zune’s debut, according to a person familiar with Urge.

Upgrades: First Albany upgrades PDL BioPharma (PDLI 22.92) to Buy from Neutral, following the resignation of the chief executive which they believe clears the way for strategic changes favorable to the co and its valuation… Lehman upgrades National Semiconductor (NSM 25.44) to Overweight from Equal-weight… Bear Stearns upgrades VistaPrint (VPRT 33.51) to Outperform from Peer Perform… Bear Stearns upgrades WM Wrigley (WWY 60.15) to Peer Perform from Underperform based on a better-than-expected response by the firm to a competitive threat from Cadbury Schweppes (CSG), ongoing momentum in developing markets and the likelihood that the firm’s new gum will perform well. Downgrades: Montgomery downgrades Linktone (LTON 2.31) to Hold from Buy, following Q207 results and based on the sudden decline in its wireless VAS revenues… BofA downgrades Toll Brothers (TOL 22.02) to Sell from Neutral… BofA downgrades Hovnanian (HOV 12.30) and Standard Pacific (SPF 9.84) to Neutral from Buy. Miscellaneous: Baird initiates VMware (VMW 57.33) with a Neutral and sets a $60 tgt, as they believe current valuation captures much of VMware’s risk-adjusted opportunity and view Microsoft as the largest long-term risk… Calyon initiates Dynegy (DYN 8.34) with a Buy and sets an $11 tgt… Calyon initiates NRG Energy (NRG 36.84) with a Buy and sets a $43 tgt… Calyon initiates Reliant Energy (RRI 25.67) with a Buy and sets a $35 tgt… Deutsche Bank initiates Acadia Pharma (ACAD 15.07) with a Buy and sets an $18 tgt, as they believe ACP-103 PII and early proof-of-concept data support a major WW strategic partnership for schizophrenia, expected in the 2H07 timeframe… JMP Securities initiates STARLIMS Technologies (LIMS 11.75) with a Outperform and sets a $14 tgt, as the co is benefiting as labs worldwide seek to replace legacy and custom LIMS systems with commercial, web-based solutions.

Miscellaneous: BofA initiates Republic Services (RSG 29.98) with a Buy and sets a $35 tgt, based on strong free cash flow, favorable geographic locations, low-cost operating model and high share of more profitable franchise collection and believe volume and margins can grow faster than peers over the next 12 months… BofA initiates Allied Waste Industries (AW 12.24) with a Neutral and sets a $13 tgt, as they favor Allied’s focus on execution and de-levering the balance sheet, yet think the turnaround story that has driven the shares has been played out and see near-term risk to free cash flow… BofA initiates Waste Management (WMI 36.38) with a Buy and sets a $41 tgt, as they like the on-going transformation of WMI into a smaller, more profitable co by using price as a tool to improve margins and return on capital… BofA initiates Cross Country Healthcare (CCRN 17.99) with a Neutral and sets an $18 tgt, as they believe margin leverage opportunity is limited while higher growth clinical trials offsets potential nursing supply challenges… BofA initiates AMN Healthcare Services (AHS 18.70) with a Neutral and sets a $19 tgt, as gross margin pressure is expected to persist into ‘08 due to softer than expected volume growth, stronger housing rental costs and healthcare insurance expenses.

European stocks, U.S. futures drop; BNP, Goldman, Toll decline – Bloomberg.com
Bloomberg.com reports European stocks and U.S. index futures fell on revived concern the mortgage rout is spreading and will dent global economic and profit growth. National benchmarks fell in all of the 17 western European markets that were open except Denmark. The U.K.’s FTSE 100 slipped 0.1%. France’s CAC 40 lost 0.2% as did Germany’s DAX. Europe’s Stoxx 50 retreated 0.3%, and the Euro Stoxx 50, a measure for the euro region, declined 0.4%.

Asian stocks extend rebound as U.S. economy concerns recede – Bloomberg.com
Bloomberg.com reports Asian stocks rose for a second day, led by raw-materials producers, amid growing confidence the U.S. economy will withstand a rout in credit markets. Japan’s Nikkei 225 Stock Average climbed 1.1% to 15,901.34 and China’s CSI 300 Index rose 1.8% to a record… Hong Kong Exchanges, which operates Asia’s third-biggest stock market, climbed 6.2% to HK$123.30 on speculation volume will increase.

Sensex swings 590pts, ends down 418pts – The Business Standard
The Business Standard reports the Sensex opened with a positive gap of 84 points at 14,512 and hit a high of 14,534 in early deals. Relentless selling in tech and bank stocks saw the index drop to a low of 13,942 in late afternoon deals -an intra-day swing of 590 points. The index finally closed with a loss of 418 points (provisional) at 14,009.

GE General Electric looks to off-load Japanese finance unit – Financial Times (38.22 )
The Financial Times reports General Electric (GE) is believed to be considering the sale of Lake, its Japanese consumer finance subsidiary, amid a shrinking market and claims from borrowers of excessive interest payments. GE has sounded out financial institutions about their interest in acquiring or investing in Lake, Japan’s sixth-largest consumer finance company. GE recently suggested to one financial institution that Lake’s problem loans could be separated from the rest of the co, which could be sold or recapitalized with outside investment. The efforts to sell Lake, or to find equity investors, are still at an early stage, although the first steps were taken last year. GE declined to comment on the matter.

HBC Lone Star confirms talks with HSBC to sell KEB – Reuters (89.42 )
Reuters reports private equity fund Lone Star confirmed on Tuesday it was in exclusive negotiations with HSBC (HBC) to sell its 51% stake in Korea Exchange Bank, with a market value of $4.8 bln. The confirmation comes a day after HSBC said it was in talks to buy a majority stake in KEB, a move that would boost its profile in Asia’s third-biggest banking market, but which could flush out domestic counterbidders, including top South Korean bank Kookmin. “The discussions are timely … it is now time for Lone Star to sell its share to a strategic investor which can bring the bank to a new level of competitiveness,” Lone Star Chairman John Grayken said in an e-mailed statement. An industry source expects Lone Star to sign a preliminary agreement with the London-based bank soon, allowing both sides to continue exclusive talks for 90 days prior to a final deal.

NDAQ Nasdaq chief to free up cash for OMX bid – Financial Times (31.52 )
The Financial Times reports Nasdaq (NDAQ) is in discussions with major OMX shareholders to persuade them to accept only shares in its takeover bid for the Nordic market operator, enabling it to offer more cash to key hedge fund investors. Hedge funds own around 25% of OMX and are motivated primarily by cash, meaning they would probably prefer the $4 bln all-cash offer for OMX from Borse Dubai rather than the $3.7 bln cash and share offer from Nasdaq. But in an interview on Tuesday morning, Bob Greifeld, Nasdaq’s chief executive, said Investor, the holding co of the Wallenberg family, and Nordea, the bank, have agreed to accept shares and that other shareholders were thinking of doing the same. If Nasdaq can persuade other major OMX shareholders to forego the cash element of its offer and take only shares, it will free up cash to award to hedge funds, putting Nasdaq’s offer on a more equal basis with Borse Dubai’s.

RIMM Research In Motion shares trade 79.02 in pre~mkt trade, reflecting 3:1 stock split effective today (78.66 )

Mad Money’ Recap: Lightning Round cont. – TheStreet.com
Cramer was bearish on Atmel (ATML), Hansen Natural (HANS), Terra Nitrogen (TNH), American Electric (AEP), Akamai (AKAM) and GrafTech (GTI).

‘Mad Money’ Recap: Lightning Round – TheStreet.com
Cramer was bullish on Under Armour (UA), Crocs (CROX), Texas Instruments (TXN), Analog Devices (ADI), Intel (INTC), Consolidated Edison (ED), Deere (DE), Agrium (AGU), Monsanto (MON), Seaspan (SSW), Eagle Bulk Shipping (EGLE), General Maritime (GMR) Integrys Energy (TEG), NYSE Euronext (NYX) and Air Products & Chemical (APD).

Cramer’s ‘Mad Money’ Recap – TheStreet.com
On Monday’s edition, Jim recommends KBW Regional Banking ETF (KRE) and says this ETF is the best way to play the upcoming cycle of the Fed. Next, he suggests eBay (EBAY) under $34. While he wouldn’t buy it right now, the stock is trading at 21x next year’s estimated growth. He favors the $3.6 bln in cash and foresees continual growth in advertising revenue. He believes the 2012 estimate of eBay earning $0.32 a share on advertising to be too low. Finally, he favors United Online (UNTD) at $14 for its 6% yield, $194 mln in cash without debt and cost cuts in the dial-up operation.