Data Feed

MSCC Microsemi: Caris raising ests following analyst day (28.66 )
Caris reiterates their Buy rating on MSCC following a bullish analyst day which highlighted strong top-line growth prospects and incremental operating leverage. With the best visibility in their analog/mixed-signal universe, firm believes MSCC is well-positioned to outgrow its peers over the medium term. On the back of higher net margin assumptions, they are increasing their CY08 EPS est to $1.52. Firm notes mgmt outlined impressive visibility towards revenue growth and margin expansion over the next fiscal year. While MSCC stock has moved higher in recent weeks, they believe upwards earnings revisions and near-term inventory inflection will drive further upside over the next 12 months.

St. Jude Medical (STJ) announces that it has been awarded a Cardiac Rhythm Management contract with Premier Purchasing Partners… VeriChip (CHIP) announces that more than 200 new healthcare facilities registered in the VeriMed Patient Identification System at the American College of Emergency Physicians 38th Annual Scientific Assembly… Given Imaging (GIVN) announces that National Government Services, the Medicare Part B Carrier serving more than 6 mln individuals in New York, New Jersey, Kentucky and Indiana, issued a new coverage policy for cirrhotic patients for the evaluation of esophageal varices using capsule endoscopy of the esophagus… Iomai (IOMI) announces that Iomai Chief Scientific Officer Gregory Glenn, M.D., presented an overview of the clinical data for Iomai’s patch-based vaccine for travelers’ diarrhea and the implications such a vaccine could have on global health at the Keystone Symposia… Granite Construction, a wholly owned subsidiary of Granite Construction (GVA), announces that it has been awarded a $44 mln highway rehabilitation project by the California Department of Transportation.

ROST Ross Stores reports Sept comparable sales of +6.0% vs +1.3% Briefing.com consensus; raises low end of Q3 EPS guidance (27.69 )Co raises low end of guidance range, sees Q3 EPS of $0.35-0.37 vs prior guidance of $0.33-0.37, consensus $0.35. Co said, “Same store sales in September were slightly below our forecast mainly due, we believe, to unseasonably warm weather in many of our markets. Geographic trends were relatively broadbased.” Co continues to sees 1-3% same store sales for October.

KSS Kohl’s guides Q3 to low end of range; Sept same store sales -3.2% vs -3.8% Briefing.com consensus (61.11 )
Co guides for Q3 (Oct), sees EPS at the low end of $0.67-0.71 vs. $0.69 Reuters Estimates consensus.

MHO M/I Homes reports unit results for the third quarter of 2007; new contracts for 2007’s Q3 were 561, down 2% YoY (17.04 )
New contracts for 2007’s third quarter were 561, down 2% from 2006’s y/y… Homes delivered for the 2007 third quarter decreased 15% to 787 from 2006’s 927… The sales value of backlog of homes at September 30, 2007 was $481 million with backlog units of 1,468 and an average sales price of $327,000. The backlog of homes at the same time last year had a sales value of $923 million with backlog units of 2,533 and an average sales price of $364,000. M/I Homes had 159 active communities at September 30, 2007 compared to 170 at September 30, 2006.

BA Boeing: CIBC lowers ‘08 ests on 787 delay (98.68 ) -Update-
CIBC notes BA owned up to a six-month delay on the 787, which they believe had been expected by the market to some degree, which left no room for error. Firm notes consensus’ 2008 EPS remain high and will likely be trimmed, but BA coming clean helps clear the air. BA still leaves plenty of risk on the table by essentially sticking to its original delivery schedule by YE09. In terms of impact to the supply chain, BA has indicated they will continue to accept deliveries on the prior schedule, which minimizes any rev/profit impact to the suppliers though cash effects could be slightly more noticeable. Firm continues to favor suppliers BEAV, COL, UTX and TGI.

LRCX Lam Research: Industry uncertainity persists but business model remains resilient – Stifel (55.01 )
Stifel notes yesteday LRCX reported preliminary 1Q08 earnings results, as it remains somewhat restricted in the information it can provide given its ongoing internal investigation into its past stock option grants. Firm says excluding the future impact on its financials related to its past stock option grants, LRCX posted another strong quarter, highlighting once again that its business model has significant resiliency through the cycles. Firm continues to believe that its business model remains a key differentiator from many of its peers. Firm is encouraged that orders could potentially pick up over the next few quarters.

JCP JC Penney reports September same store sales -4.6% vs 0.0% Briefing.com consensus (68.00 )
Co sees Q3 EPS of $1.00-1.04 vs $1.29 consensus; co sees comparable department store and direct sales to decrease in the low-single digits. Co sees Oct department comparable store sales to increase in the low- to mid-single digits.

Initial Claims 308K vs 315K consensus, prior revised to 320K from 317K
Import Price y/y +5.2% vs +1.0% consensus
Trade Balance -$57.6 bln vs -$59.0 bln consensus

GOOG Google: Q3 preview; four ares of focus; tgt raised to $710 – Stifel (625.39 ) -Update-
Stifel notes GOOG reports 3Q07 on Oct 18, 2007. Firm forecasts 3Q07 rev ex-TAC for GOOG of $2.9 bln (up 54% YoYar), cash EPS of $3.80 (+49%) and adjusted EBITDA (before stock compensation expense) of $1.72 bln (+75%). Firm’s ests are modestly increased to reflect market share gains and currency benefits. First Call consensus mean ests are for rev ex-TAC of $2.94 bln, cash EPS of $3.75 and adjusted EBITDA of $1.74 bln. Firm believes there are four areas of interest for investors to focus on in the co’s earnings release and conf call – 1) Headcount Expenses; 2) Mobile Internet Strategy; 3) Video Monetization; and 4) Core Search. Firm raises their tgt to $710 from $620.

TJX TJX Cos reports Sept comparable sales of +2.0% vs +1.8% Briefing.com consensus; reaffirms Q3 EPS of $0.53 – $0.55 (29.67 ) Co reports consolidated comparable store sales for the five-week period ended October 6, 2007, of +2.0% vs Briefing.com consensus of +1.8%. Carol Meyrowitz, President and CEO stated, “Our consolidated comparable store sales increase of 2% was in line with expectations and achieved on top of last year’s September performance…We remain comfortable with our previously anticipated third quarter earnings per share range from continuing operations of $.53 – $.55. (consensus $0.55)

TGT Target reports September same store sales +1.2% vs +2.0% Briefing.com consensus (65.77 )
CEO says, “Our comparable store sales growth in September was below our planned range, particularly in apparel. As a result, we now believe that our full year EPS will be below $3.60.” Briefing.com note: consensus is $3.60, prior guidance was “slightly more or slightly less than $3.60″.

VM Virgin Mobile USA IPO prices at low end of range; offers prepaid or pay-as-you-go wireless service (15.00 )
Virgin Mobile USA (VM), a joint venture between Sprint Nextel (S) and Richard Branson’s Virgin Group, prices its IPO at $15, at the lower end of its expected $15-17 range. The co is a national provider of wireless service, focusing on the prepaid or pay-as-you-go market segment. While the co focuses on the youth market, it believes more about half of its current customers are 35 and over. The co offers a flat per-minute basis and on a monthly basis for specified quantities, or buckets, of minutes purchased in advance — in each case without requiring customers to enter into long-term contracts. Virgin Mobile markets its products under its own brand but relies on Sprint’s PCS network to carry its customers’ calls. VM pays Sprint Nextel at cost plus a specified margin… The co will use the proceeds to repay debt, and to buy out 16.7% of Sprint Nextel’s interest. As of June 30, the company had 4.83 mln customers (15% market share), compared with 8.6 mln at its biggest prepaid competitor, Tracfone, which is a unit of America Movil (AMX). After posting losses from 2002-2006, it appears the co is now profitable as 1H07 pro forma EPS was $0.54. Revenue rose 23% yr/yr to $666.9 mln… Briefing Note: This deal priced at the low end of the range. It appears that the co’s history of losses had an impact. While it did report a profit in 1H07, there are concerns whether that is sustainable. Also, the co does not own a network, it’s essentially just a brand name piggybacking on the Sprint PCS network. So the co is essentially just a brand name… However, in light of the potential merger between other pre-paid providers MetroPCS (PCS) and Leap Wireless (LEAP), we would keep VM on the radar on any more merger talk in the space. This is a 27.5 mln share deal, led by Lehman. Merrill and Bear Stearns were also involved. (IPOXX)

BZH Beazer Homes additional details from 8:01 findings of audit investigation (9.93 ) -Update-
In addition to a previously disclosed subpoena at its Beazer Mortgage subsidiary, the co received from the Securities and Exchange Commission a formal order of private investigation to determine whether the Company and/or other persons or entities involved with the Company have violated federal securities laws, including, among others, the anti-fraud, books and records, internal accounting controls, periodic reporting and certification provisions thereof. The co continues to fully cooperate with the U.S. Attorney and SEC investigations. The interim results of the independent internal investigation have been provided to both the U.S. Attorney and the SEC.

Bond Watch: Dragged Lower
The market tripped lower overnight & there it has remained. Global equities chugged higher & investors sought out the less-safe assets with better returns as credit concerns diminish. Central banks continue to beat the inflation drum & each passing data series suggests a not-so bad affect on the broader economy from the housing debacle. Bonds are suffering in the meantime, the game is definitely far from finished. The 2-10-yr yield spread is hovering around 50.9 as curve trade awaits more data. Bond prices in the EuroZone & Japan suffered from the latest swing to stocks. Treasuries will key off some middling data this morning & along with equity gyrations. Fed gov Kroszner makes an appearance & Treasury re-opens $6B of TIPS. Technical ranges have prevailed this week but that looks set to break with today’s data likely providing the catalyst. Prices are resting on the range bottom & given the negative momentum it will take very little to push through that support in search of a new level that will attract bids. The buck is weak with the euro managing a push through 1.4200 overnight but follow-through has been limited thus far. Against the yen, the dollar is knocking back on the door of Mon’s failed holiday-session attempt at 117.6500. Mid-level data up has import/export prices, initial jobless claims & trade balance at 8:30 followed by treasury budget at 12. Fed-speak has Kroszner (10:45). The euro is at 1.4187 & the yen is at 117.7300 while the 10-yr is -05/32nds yielding 4.671%.

Hearing tier 1 firm initiates select truckers
Hearing tier 1 firm initiating CHRW, KNX, and JBHT with buys; FWRD, PACR, ODFL, HUBG, LSTR, YRCW, HTLD, WERN with neutrals; and MRTN and ABFS with sells.

Gapping up: SEED +15.5%, SDTH +14.9%, PSUN +9.0%, CSUN +9.6%, CHINA +8.1%, YZC +7.8%, STV +5.2%, PTR +6.0%, GOLD +5.6%, CHNR +5.7%, TEF +5.6%, LDK +5.1%, GIGM +4.2%, WMT +4.0%, ERIC +4.0%, JASO +3.7%, NOK +3.7%, CBAK +3.7%… Gapping down: RT -10.1%, JWN -6.0%, INFY -5.8%, SNDK -1.1%, FCS -0.6%, INTC -0.4%.

Lazard previews NPD preview; expects positive “Halo effect” in Sept video game data
Lazard ests that software sales increased ~30% in September, despite a tough year-over-year comparison (+28%), largely driven by strong initial sales of Halo 3. Firm believes positive industry trends continue to benefit specialty retailer GME with Halo 3 driving incremental store traffic and positive sales momentum ahead of the key holiday selling season. Firm expects approximately 100% growth in September sell-through on an easy comparison (-32%) and ongoing solid catalog sales of Guitar Hero titles for ATVI. They expect sell-through to be roughly flat from last year with top titles Madden NFL 08, Tiger Woods PGA and Skate for ERTS. They expect THQI sell-through to be down 40% from last year on a tough year-over-year comparison from sales of Saints Row in September 2006, as well as ongoing slow sales in North America of Stuntman: Ignition and Juiced 2.

GE General Electric to decide on NBC after Olympics – FT (41.81 )
FT reports the fate of NBC Universal will be decided only after the Beijing Olympics, with executives at the US conglomerate ruling out a sale before August’s showcase event, according to people close to the situation. NBC, whose value is estimated at about $40 bln, has been the subject of repeated sale rumors because of its lagging performance and the awkward fit with the rest of GE’s industrial and financial businesses. The issue is likely to resurface on Friday, when GE reports third-quarter earnings that should show signs of improvement at NBC. People close to the situation say that Jeffrey Immelt, GE’s chairman and chief executive, will not consider the future of GE’s 80% per cent stake in NBC before the Olympics. The other shareholder, the French media group Vivendi, is not seen as a potential buyer or a long-term owner of the shares. Under a deal with GE, Vivendi has the right to ask the US co to buy back its 20% stake or force a listing of NBC.

NMX NYMEX says September 2007 volume averaged 1.618 mln contracts per day, up 13% over year ago period (132.94 )
Co announces that average daily volume in Sep 2007 was 1.618 mln contracts, a 13% increase from 1.438 mln contracts per day in Sep 2006. NMX electronic volume on the CME Globex electronic trading platform was 768,111 contracts per day and represented a 178% increase over 276,568 contracts per day in Sep 2006 electronic volume on CME Globex. COMEX electronic volume on CME Globex averaged 121,034 contracts per day and represented a 1,396% increase over 8,090 contracts per day in Sep 2006 NMX ACCESS electronic volume.

GPS Gap Inc reports September same store sales -7% vs -4.9% Briefing.com consensus (19.33 )
“Our merchandise margins in September were in line with last year and we are comfortable with our inventory levels, which we continue to manage tightly heading into the important holiday season.”

SKS Saks reports September same store sales +7.7% vs. +8.8% Briefing.com consensus (17.65 )

CFC Countrywide Reports September 2007 Operational Results; mortgage loans declined 44% from Sept ‘06 (18.80 ) -Update-Mortgage loan fundings for the month of September 2007 totaled $21 billion, a 44 percent decline from September 2006. Average daily mortgage loan application activity for September 2007 was $1.7 billion, a 39 percent decrease from September 2006. The mortgage loan pipeline was $42 billion at September 30, 2007, as compared to $65 billion for the same period last year. “September’s production volume is reflective of current market conditions and more restrictive underwriting,” said David Sambol, President and Chief Operating Officer. “For the third quarter of 2007, total mortgage loan production volume declined 27 percent from the second quarter of 2007 and 19 percent from the third quarter last year. Countrywide’s mortgage loan pipeline and average daily applications declined 39 percent and 45 percent, respectively, from June 2007 to $42 billion and $1.7 billion for September 2007, illustrating the significant drop in overall activity throughout the industry”.. “The delinquency rate as a percentage of loans serviced continued to increase in September. However, we estimate that approximately 40 basis points of the 82 basis point month-over-month increase was attributable to four fewer business days in September as opposed to August,” Sambol explained. “The Company is continuing to take the necessary steps to assist borrowers with foreclosure avoidance and investors with loss.”

DDS Dillard’s reports September same store sales -7% vs -3.5% Briefing.com consensus (23.87 )

ANF Abercrombie Sep same store sales decrease 4.0%, Briefing.com consensus -1.9%. (84.51 )

FDO Family Dollar reports September same store sales +0.5% vs. +1.5% Briefing.com consensus (27.97 )

ARO Aeropostale reports Sept same store sales of +1.3% vs -0.5% Briefing.com consensus; reiterates Q3 EPS guidance of $0.43 – $0.45 (19.92 )

M Macy’s reports September same store sales -2.7% vs -0.8% Briefing.com consensus (34.50 )
Co sees Oct same store sales from -1% to +2%. Co reaffirms Q3 same store sales of -1% to +1%. “Consumers responded positively to the launch of our exclusive Martha Stewart Collection at Macy’s in September. Overall September sales were down, as expected, because of the comparison to a very strong Macy’s nationwide brand launch in this month last year, which included the conversion of more than 400 former May Company stores to the Macy’s nameplate, supported by intensive marketing and events at every location across the country. Sales trends this September were negatively impacted by unseasonably warm weather in the Northeast and Midwest.”

FEED AgFeed Industries approved for listing on the Nasdaq Global Market (11.99 )
Co announces that AgFeed received approval from The Nasdaq Stock Market to transfer the listing of its common stock from the Nasdaq Capital Market to the Nasdaq Global Market. Listing on the Global Market will commence with the opening of business on Friday, October 12, 2007, under the Company’s same trading symbol, FEED. “AgFeed is pleased to join the Nasdaq Global Market. Our business continues to grow rapidly and benefits from strong demand for quality premix feed products in a favorable market environment in which China experiences severe pork shortages. We look forward to continued earnings growth in 2007.”

BZH Beazer Homes announces findings of Independent Audit Committee investigation; co to restate financials with cumulative impact expected to be an increase in net income (9.93 )
Co announces interim findings from its Audit Committee’s previously announced independent internal investigation into the Company’s mortgage origination business and certain accounting and financial reporting matters. The Audit Committee has determined that it will be necessary for the Company to restate its financial statements relating to fiscal years 2004 through 2006 and the interim periods of fiscal 2006 and fiscal 2007 (collectively the “restatement period”). The restatement is also expected to impact the financial results for fiscal years 1999 through 2003 and the Company expects that it will reflect the impact of financial results for these prior years as a part of the opening balances in the financial statements for the restatement period. Company expects the restatement’s cumulative impact will likely be an increase in net income, but will reflect an expected decrease in net income for the Company’s 2006 fiscal year.

SNDK SanDisk: Downgrade details (51.68 )
Oppenheimer downgraded SNDK to Neutral from Buy saying they see many of the advantages that SNDK had enjoyed starting to unwind in 4Q and into 1H08. In particular 1) Samsung starting 51nm supply at 8Gb opening up NAND supply faucet, 2) Spot Pricing continuing to trend 10%-15% below contract even with benign supply, 3) Hynix moving capacity to NAND in 4Q07, 4) moderating SNDK flash card market share in 4Q, as the competition gets more flash, and 5) 57nm benefits offset by Samsung/Hynix 51/60nm supply and seasonal 4Q price declines.

UNH UnitedHealth tgt upped to $52 at Jefferies (49.33 )
Jefferies raises their UNH tgt to $52 from $48. While they continue to view the commercial health insurance market fundamentals as challenging over the next 18 months, they believe a trading opportunity could exist from the absence of additional issues being uncovered this quarter

IGT Intl Game Tech: Casino expansions make progress; could meaningfully impact the EPS of the equipment suppliers IGT & WMS – Wachovia (43.95 )
Wachovia notes that several new casino markets continue to see progress made on the regulatory front, as they move closer to expansions/openings. They think these markets could meaningfully impact the EPS of the equipment suppliers, saying for IGT, they believe the new shipments are worth up to $0.20 in EPS, while for WMS they believe it is worth up to $0.26 in EPS.

BONT Bon-Ton Stores announces comparable Sept sales of -7.1% vs -2.0% Briefing.com consensus (23.04 )

Jefferies previews Q3 earnings for Internet stocks
Jefferies notes that many Internet stocks have returned to pre-summer highs or have set new records on a more favorable macro picture and expectations for strong 3Q results, starting next week. The firm expects “the big three” to report solid quarters, with outperformance coming out of GOOG, then EBAY, then YHOO (in line). GOOG remains their top large-cap pick going into this earnings season, and they expect the co to outperform current expectations. They think EBAY should report slightly better than expected results, and YHOO to report 3Q results that are in line with estimates. Among the small cap names, they like the fundamentals of VPRT, RATE, DHX and INWK.

U.K. offers guarantees to BoE on Northern Rock – Globe and Mail
Globe and Mail reports Britain’s finance ministry will compensate the Bank of England should the central bank find itself out of pocket after providing emergency financing to battered mortgage bank Northern Rock, the Treasury said.

ANN AnnTaylor reports September same store sales +0.5% vs -0.9% Briefing.com consensus (34.04 )
“Despite persistent traffic softness at both divisions, we managed our business well in September. At Ann Taylor, the slowdown in traffic negatively affected the business, causing us to be more promotional during the month, but we maintained solid margins. At LOFT, we were pleased with our performance in September, which benefited from very strong in-store metrics that offset particularly soft traffic. Clients responded favorably to our more balanced assortment, which was more season- less, featured more color and novelty and offered more relaxed wear-to-work options. We are pleased with the success we achieved during the month in tightly managing our inventory levels, particularly during this period of macroeconomic uncertainty, and we entered October in a healthy position at both divisions.”

DIVX DivX initiated with an Outperform at Barrington- tgt $20 (13.95 )
Barrington initiates DIVX with an Outperform and a $20 saying ongoing mgmt and structural changes beginning earlier this year have driven the stock down to half of the peak level to which the stock surged in the initial months of trading following its IPO roughly one year ago. At present, the firm feels various initiatives have enabled DivX to highlight the reasonably predictable generation of revenues and profitability in its core business line. In addition, DivX was able to separate out the growing, but costly, content aggregation effort of Stage6.com (while potentially leaving the door open for a continuing minority interest in this effort) and to focus on its newly established management team.

U.S. cable and satellite preview – Oppenheimer
Oppenheimer expects cable’s lackluster 3Q customer growth should keep the stock’s trading multiples at current depressed levels through EOY 2007. That said, concern with basic churn impact to valuation is overdone. For CMCSA firm expects lackluster 3Q07 customer gains, they est cont’d robust OCF growth (of 15%): specifically, they expect -20k basic sub losses, 480k data and 739k Voip sub gains… For TWX firm says most of the lackluster fundamentals from 2Q07 continue. They expect -40k basic sub losses and 215k data and 295k Voip sub gains… For DTV firm expects somewhat positive fundamentals… For DISH firm anticipates that the improvement in DISH’s fundamentals are similar to DTV’s although DISH FCF should be higher than 3Q06 as higher EBITDA is not offset by higher cash taxes.

FRED Fred’s reports September same store sales +1.0% vs +1.3% Briefing.com consensus (10.68 )
CEO says, “September sales came in at the low end of our forecasted range of a 1% to 3% increase, affected by unusually warm weather across our markets and the disruption caused by the updating of 98 stores under our refresher program. We look forward to finishing our refresher program in October with the last 60 stores and to a better economic environment for our customers going forward, as the benefits of the minimum wage increase and the focus of Federal Reserve Board on the credit crunch take hold.”

TEF Telefonica sets new sales, dividends targets – Bloomberg (81.85 )
Bloomberg reports the co rose in Madrid trading after accelerating dividend payments and forecasting annual sales growth of as much as 8%. Chairman Cesar Alierta, at a meeting with analysts and investors today in London, said a dividend of 1 euro a share, a total of 4.77 bln euros ($6.77 bln), will be paid in 2008, a year earlier than planned. He said sales will grow 5% to 8% a year through 2010. Alierta is plowing more money into dividends to reassure shareholders after an $80 bln acquisition spree left the Madrid-based co with more debt than any other European telephone rival. Telefonica forecasts per-share profit will reach 2.304 euros in 2010, Alierta told investors. The co earned 1.304 euros a share in 2006. The first part of the 2008 dividend, which is two times the payout set for 2005, will be paid in the second half of 2008 and the rest during the first six months of 2009. Alierta pledged to double the dividend and per-share profit in 2009 from 2005 levels. That meant reaching earnings per share of 1.82 euros in 2009. Alierta said Telefonica plans to continue with “selective acquisitions.”

EMC EMC Corp tgt raised to $25 at FBR (22.57 )
Friedman Billings raises their tgt on EMC to $25 from $17, in order to reflect the reality of VMW shares trading at $107. Firm continues to ascribe a value of approx $11 to the “core EMC” business (EMC without VMware), so the adjustment firm is making is to the embedded value of EMC’s 86% ownership stake in VMware.

VCLK ValueClick: Downgrade details (29.32 )
Citigroup downgraded VCLK to Hold from Buy and raised their tgt to $30 from $25, based on valuation. They believe the most recent move up in VCLK shares is due to reported speculation that it would be acquired. Like aQuantive before, the firm believes that VCLK is a potential M&A candidate. But they see no evidence of a near-term deal and believe the likelihood of a deal at the 30x ‘08 EV/EBITDA multiple MSFT paid for AQNT is very unlikely.

JASO JA Solar initiated with a Buy at Collins Stewart- tgt $60 (42.93 )
Collins Stewart initiates JASO with a Buy and a $60 tgt saying JASO is executing a pure-play strategy in the solar market, as it currently focuses solely on the processing of purchased silicon wafers into solar cells. The co is able to compete against its more integrated competitors due to its low processing cost per cell. They estimate that JASO’s per watt processing costs is $0.21 per watt, a discount to its peers.

FSLR First Solar initiated with a Buy at Collins Stewart- tgt $160 (135.90 )
Collins Stewart initiates FSLR with a Buy and a $160 tgt saying recent checks have indicated that FSLR’s customers are receiving modules with efficiencies as high at 10.4% in the Sept qtr, well above the 9.7% average seen in the June quarter. Firm says their model assumes just 10.0% for the quarter, so they believe there is room for upside to margins, as efficiency improvements drive cost reductions.

NVDA NVIDIA: Downgrade details (36.91 )
ThinkEquity downgraded NVDA to Accumulate from Buy and cut their tgt to $41 from $55 saying checks with tier-one notebook O.D.Ms indicate below-normal forecasts and build rates for Q4. While they believe that component demand remains robust for NVDA, they are concerned over an apparent shortfall for likely Q4 builds and normal seasonality.

VMW VMware, Microsoft headed for virtualization war – DJ (107.04 )
DJ reports although Bittman says the virtualization mkt is immature, the changes it can deliver are going to be pervasive throughout the tech industry and lead to a battle for the market between upstart leaders and sector behemoths all wanting to get in on the virtualization action. He also said that with 94% of the mkt for virtualization technology still untapped, VMware has a strong opportunity to build up its already solid customer base. However, the analyst warned that lurking in the corner of the virtualization mkt is the ever-present, 800-pound gorilla of the tech sector, Microsoft (MSFT). The software giant is planning to launch its own virtualization platform called Viridian, in late 2008. However, Bittman said that while the battle for the virtualization mkt is in its infancy, VMware still has a six-year head start on Microsoft. Such a lead puts Microsoft so far behind VMware that unless it gets Viridian right out of the gate, and without distractions such as the security bugs that often accompany the early releases of new Windows operating systems, Microsoft might not make up the gap between it and VMware.

INTC Intel: Downgrade details (25.88 )
ThinkEquity downgraded INTC to Source of Fund from Accumulate and cut their tgt to $22 from $26 saying checks indicate that distributors in Asia Pacific are seeing weak forecasts for Q4 on PC-related chips. The firm also says headwinds for the stock that are likely to result from weaker-than-expected Q4 demand in the PC supply chain.

JWN Nordstrom reports September same store sales +3.2% vs +5.0% Briefing.com consensus (48.61 )
Co sees Q3 EPS of $0.50-0.53, compared to previous guidance of $0.61-0.64, vs $0.64 consensus. Co sees Q3 same store sales +2-4%, compared to previous guidance of +4-5%.

BA Boeing: Color on 787 delay (98.68 )
Jefferies notes that BA has announced a six-month delay in its initial deliveries of the 787. Out-of-sequence work and unplanned re-work on the first aircraft and second fuselage have prevented the co from starting the flight test program by this December. The firm says their EPS estimates have allowed for some risk, and they see no reason to make adjustments at this time. They note some 787-related revenues would shift from 2008 to 2009. At the same time, the minimal expected profit contribution typical of the initial deliveries under a new aircraft program, coupled with the 787’s modest proportional contribution to the overall Boeing enterprise, allows them to leave their EPS estimates unchanged… Calyon ontes that stocks in their universe with exposure to 787 deliveries are Goodrich (GR), B/E Aerospace (BEAV), Triumph Group (TGI), and TransDigm Group (TDG). However, with minimal deliveries slated for 2008 and a ramp-up that was to start in 2009, the firm is not changing their estimates. They say BEAV has minimal 787 content in its current backlog, which typically covers a two-year period. For GR, TDG, and TGI, firm says they are all diversified with respect to their content on many aircraft platforms.

S Sprint Nextel’s turmoil clouds WiMax – Chicagotribune.com (18.02 )
Chicagotribune.com reports that executive turmoil at Sprint Nextel (S) could put the brakes on the building of a new national mobile broadband network designed to provide wireless Internet access everywhere, analysts said Wednesday. S is seeking new leadership after its chairman and chief executive, Gary Forsee, bowed out this week under pressure from investors unhappy with the co’s performance. Besides seeking to turn around S’s traditional cell phone business, the new chief will undoubtedly scrutinize S’s plans to spend $5 bln building a WiMax wireless network. While no one expects S to walk away from WiMax outright, analysts said investor pressure could cause the firm’s new leader to look at slowing down the buildout to conserve cash. Other alternatives would be to spin off the WiMax unit as a separate co, sell it outright or take in new partners in the buildout to bolster its cash position. WiMax is already considered to be a risky but potentially winning bet for S, and any uncertainties introduced into current plans could cause problems for Motorola (MOT), Intel (INTC), and Nortel Networks (NT).

SNE Sony Ericsson 3Q profit -10%, margins strong – DJ (49.11 )
DJ reports Sony Ericsson, the world’s fourth largest mobile phone operator Thursday saw third quarter net profit drop 10% to 267 mln euros, but increased device shipments by 31%, after it extended its push into fast-growth emerging mkts. The co, a joint venture between Ericsson (ERIC) and Sony (SNE) – which over the last few quarters has been pushing ahead with making lower end phones to target markets such as Latin America and India – saw mobile phone shipments grow to 25.9 mln in the quarter from 19.8 mln the previous year. The co reported revenues for the three months ending Sept. 30, up 7% to 3.11 bln euros from 2.913 bln euros but missed analyst forecasts on sales and volumes. Sony Ericsson said exceptional third-quarter result in 2006 may have also skewed growth rates during this period. However, the average selling price of Sony Ericsson devices fell to 120 euros from 147 euros per handset, as the co began to target highly populated regions where disposable income is lower. The co slightly edged up its forecast for the global handset market, saying that more than 1.1 bln units will be sold during 2007. Sony Ericsson also said that it had gained ground during the quarter, taking 1% market share year-on-year, giving it over 9% of the global mobile phone mkt.

WMT Wal-Mart reports September same store sales; raises Q3 guidance (45.59 ) -Update-
, co reports total U.S. September same store sales +1.4% vs +1.6% Briefing.com consensus. Co sees Q3 EPS of $0.66-0.69, compared to previous guidance of $0.62-0.65, vs $0.63 consensus. CEO says, “For the first two months of the quarter, we have seen improvement in initial margin and expense leverage at the Wal-Mart Stores division, which is driving this change.” Co sees comparable store sales at the Wal-Mart Stores segment driven by grocery and pharmacy. Co says apparel and home remain soft. In addition, unseasonably warmer weather in much of the country, coupled with tighter consumer spending, negatively impacted key seasonal categories.

PCLN priceline.com initiated with a Neutral at Credit Suisse- gt $95 (92.82 )
Credit Suisse initiates PCLN with a Neutral and a $95 tgt saying differentiated positioning, superior management, fundamental momentum, demonstrated leverage and supplier-friendly operating model support well above-average visibility on sustainability of strong growth and margin profile.

AEO American Eagle: Robust growth opportunities trump sluggish Sept sales – Nollenberger (24.58 )
Nollenberger notes AEO reported a September same-store sales decline of 2% vs. an 11% increase during the same period last year. Lower traffic, especially in the regions experiencing the warmest weather throughout the month, contributed to the sales decline. Based on the weakness in Sept, mgmt lowered its fiscal third quarter EPS guidance to $0.44-0.45 from $0.47-0.48. Firm has lowered their Q3 EPS est to $0.45 from $0.51. Firm believes AEO is poised for upward movement because it already reflects the worst-case scenario for the back half of the year. They believe the bad news is now behind the co, and they anticipate that sales momentum could be regained as early as this weekend due to the colder weather forecast.

CHS Chico’s FAS reports September same store sales -8.3% vs -7.1% Briefing.com consensus (15.28 )

TXN Texas Instruments downgraded to Source of Funds at ThinkEquity- tgt cut to $33 from $38 (36.39 )
ThinkEquity downgrades TXN to Source of Funds from Accumulate and cuts their tgt to $33 from $38 saying while checks are largely positive on TXN’s analog business (strong TXN-specific trends against a backdrop of weak broad distribution demand for analog), they are concerned that competition could hamper Q4 and 2008 growth for wireless.

Upgrades: CIBC upgrades Pharmacopeia (PCOP 5.66) to Outperform from Sector Perform with an $8 tgt saying they believe the co’s lead cardiovascular drug D.A.R.A has the potential to become an important new therapy for hypertension and diabetic nephropathy. Downgrades: Oppenheimer downgrades SanDisk (SNDK 51.68) to Neutral from Buy saying they see many of the advantages that SNDK had enjoyed starting to unwind in 4Q and into 1H08… ThinkEquity downgrades Intel (INTC 25.88) to Source of Funds from Accumulate… ThinkEquity downgrades Fairchild Semi (FCS 17.45) to Sell from Source of Funds… ThinkEquity downgrades Maxim (MXIM 28.87) to Accumulate from Buy… ThinkEquity downgrades NVIDIA (NVDA 36.91) to Accumulate from Buy. Miscellaneous: Baird initiates Wintrust Financial (WTFC 44.95) with a Neutral and sets a $47 tgt, as a resumption of robust asset growth, positive operating leverage and more favorable industry conditions are expected to drive above-average EPS growth yet valuation and belief that consensus estimates may prove high leave them awaiting a better entry point… Baird initiates Amcore Financial (AMFI 26.37) with a Neutral and sets a $28 tgt, as they expect long-awaited earnings leverage from five-year-old branch expansion strategy will remain slow to materialize given sluggish revenue growth… Piper Jaffray initiates Qiagen (QGEN 20.96) with an Outperform and a $24 tgt… Piper Jaffray initiates Cepheid (CPHD 24.58) with a Market Perform… Lehman initiates Ecolab (ECL 47.03) with an Equal Weight… Citigroup initiates Sherwin Williams (SHW 66.15) with a Hold.

PLCE Children’s Place September same store sales -3% vs +0.3 Briefing.com consensus (23.40

Upgrades: JP Morgan upgrades Celestica (CLS 6.44) to Neutral from Underweight… Lehman upgrades Norfolk Southern (NSC 53.30) to Equal-weight from Underweight. Downgrades: Friedman Billings downgrades FirstFed Financial (FED 52.00) to Market Perform from Outperform and lowers their tgt to $50 from $60, given the continued weakness and uncertainty in the Calif. housing market… Piper Jaffray downgrades NASDAQ (NDAQ 21.97) to Market Perform from Outperform… Citigroup downgrades Nuance (NUAN 42.79) to Hold from Buy… Citigroup downgrades ValueClick (VCLK 29.32) to Hold from Buy… CIBC downgrades Corel (CREL 13.11) to Sector Perform from Outperform following earnings and given the low visibility and time lag in rev growth… JP Morgan downgrades TTM Technologies (TTMI 13.15) to Neutral from Overweight… Deutsche Bank downgrades Axa (AXA 44.90) to Hold from Buy… Citigroup downgrades Xyratex (XRTX 18.99) to Hold from Buy… Lehman downgrades Burlington Northern (BNI 85.56) to Equal-weight from Overweight… Lehman downgrades CSX (CSX 42.91) to Underweight from Equal-weight… Wachovia downgrades Abbot Labs (ABT 54.86) to Market Perform from Outperofrm saying they expect the U.S. launch of its drug-eluting stent, Xience, to be delayed by 6-12 months due to a paucity of long-term follow-up data; lead drug Humira’s prescription growth rate is decelerating and the product will face new competition from JNJ’s Golimumab in about a year; and they expect income from the T.A.P J.V to decline meaningfully over the next few years.

Global stocks, U.S. futures rise; BHP, Woodside, Exxon gain – Bloomberg.com
Bloomberg.com reports Stocks in Europe and Asia advanced, boosted by mining and energy companies after copper jumped the most in three weeks in New York and oil prices rallied. U.S. index futures also rose. Europe’s Dow Jones Stoxx 600 Index increased 0.5% to 389.95. National benchmarks rose in all of the 17 western European markets that were open except for Ireland. France’s CAC 40 and Germany’s DAX added 0.6% and the U.K.’s FTSE 100 advanced 0.9%.

Miscellaneous: Wachovia initiates Genzyme (GENZ 70.11) with an Outperform, as they believe Myozyme will be a major contributor of growth from 2006 to 2011 followed by the hematology oncology franchise… Wachovia initiates Bioenvision (BIVN 5.55) with a Market Perform, based on the pending merger with Genzyme that could keep shares range bound and believe clofarabine will ultimately be integrated into the standard treatment regimens for adult and pediatric cancers, as well as intriguing efficacy in MDS and lymphomas… Wachovia initiates Molecular Insight Pharma (MIPI 7.16) with an Outperform, as they believe compounds Azedra and Zemiva have favorable risk/reward profiles as both are approved and widely used outside of the U.S. reducing U.S. clinical and regulatory risk… Wachovia initiates Dendreon (DNDN 8.42) with a Market Perform, as they caution investors that efficacy for Provenge is suspect due to a series of confounding issues brought to light during the FDA review of the Biologics License Application… Wachovia initiates Neurocrine Biosciences (NBIX 10.50) with a Market Perform, as they are cautious about the Indiplon IR commercial prospects and see the competitive dynamics of the insomnia market as challenging… Wachovia initiates GTx (GTXI 17.58) with an Outperform, based on potential to file 4 NDAs in the U.S. commencing in ‘08 through ‘11 for its two lead compounds: Acapodene and Ostarine… Wachovia initiates Arena Pharma (ARNA 10.91) with a Market Perform, as they believe significant clinical questions remain for Lorcaserin and question whether Phase I and II data for APD125 are robust enough to support initiation of expensive Phase III studies in ‘08.

Miscellaneous: Janney initiates Sterling Bancshares (SBIB 12.01) with a Neutral and sets a $13 tgt, based on valuation and favor shares long-term due to the co’s exposure to high-growth, demographically favorable markets of the Texas Triangle… Janney initiates Cullen/Frost Bankers (CFR 50.80) with a Neutral and sets a $54 tgt, as they believe the co continues to value credit quality over balance sheet growth yet anticipate pressure on the net interest margin as the Fed enters an easing cycle… Janney initiates Texas Capital Bancshares (TCBI 22.10) with a Neutral and sets a $24 tgt, based on valuation and believe the co is well positioned to continue gaining market share against the backdrop of what are likely to be continuous M&A disruptions for the next several years… Oppenheimer initiates ZIOPHARM Oncology (ZIOP 3.31) with a Buy and sets a $10 tgt, based on ifosfamide metabolite (IPM) entering Phase III for sarcoma in Q208, oral tubulin inhibitor (Indibulin) with $1 bln market potential entering Phase II in 1H08 and organic arsenic (Darinaparsin) to begin pivotal studies in 2H08… Wachovia initiates Isis Pharma (ISIS 15.86) with an Outperform, based on three value drivers; a therapeutics business composed of 17 compounds, a revolutionary diagnostics business, and the broadest intellectual property estate in the field of RNA targeted therapeutics… Wachovia initiates BioMarin Pharma (BMRN 26.73) with an Outperform, as they expect solid double-digit growth for existing Enzyme Replacement Therapies and see Kuvan and Phenylase as future growth drivers.

Banks buy $180 mln stake in Tradeweb – Financial Times
Financial Times reports a consortium of the largest banks on Wall Street has acquired a $180 mln stake in Tradeweb, the electronic trading platform owned by Thomson (TOC), in a collective push to bolster the efficiency of the credit and derivatives markets in the wake of this summer’s market turmoil. The size of the investments were not disclosed but it is thought Goldman Sachs (GS), Lehman Brothers (LEH), JPMorgan (JPM) and Morgan Stanley (MS) were the lead investors in the new venture, known as TradeWebFusion. A further five banks; Credit Suisse (CS), Deutsche Bank (DB), RBS, UBS (UBS) and Merrill Lynch (MER) also invested in the platform which was previously owned by seven of the nine banks. Reports suggest the investment values the entire co at $1.5 bln.

CFC Stock sales by chief of lender questioned – NY Times (18.80 )
The NY Times reports the SEC has been asked to investigate stock sales made by Angelo R. Mozilo, chief executive of Countrywide Financial (CFC), in the months before its shares plummeted amid the deepening mortgage crisis. In an Oct. 8 letter to the SEC chairman, Christopher Cox, the state treasurer of North Carolina, Richard H. Moore, questioned changes Mr. Mozilo made to his arranged stock selling program, adjustments that allowed him to increase significantly his sales of Countrywide shares. After starting a plan in October 2006, Mr. Mozilo twice raised the number of shares that could be sold: once in December 2006, when Countrywide stock was $40.50, and again in February, when it hit a high of $45.03. He has had gains of $132 mln since starting the October 2006 plan and expects to sell his remaining shares by the end of the week, a move that will generate millions more. The SEC, as is its custom, declined to say how it would respond to Mr. Moore’s letter and whether it was examining Mr. Mozilo’s trades. But Linda Chatman Thomsen, director of enforcement at the commission, said yesterday at a conference of the National Association of Stock Plan Professionals that the SEC was taking a closer look at planned selling programs by executives.

INFY Infosys beats by $0.02, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY08 EPS above consensus, revs above consensus (55.29 )
Reports Q2 (Sep) earnings of $0.48 per share, $0.02 better than the Reuters Estimates consensus of $0.46; revenues rose 37.0% year/year to $1.02 bln vs the $0.99 bln consensus. Co issues upside guidance for Q3, sees EPS of $0.51 vs. $0.50 consensus; sees Q3 revs of $1.07-1.08 bln vs. $1.06 bln consensus. Co issues upside guidance for FY08, sees EPS of $1.98-1.99 vs. $1.93 consensus; sees FY08 revs of $4.16-4.17 bln vs. $4.09 bln consensus.

‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com
Cramer was bearish on: KongZhong (KONG), Pioneer Drill (PDC), NightHawk (NHWK), New York Community Bank (NYB) and MDU (MDU).

‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on China Mobile (CHL), Enterprise Product Parners (EPD), Schering-Plough (SGP), Celgene (CELG), Sanofi-Aventis (SNY), Manulife (MFC), Prudential (PRU), Metlife (MET), E-Trade Financial (ETFC), Furmanite (FRM), ITT (ITT), Transocean (RIG), Schlumberger (SLB) and Hudson City (HCBK).

Cramer’s ‘Mad Money’ Recap – TheStreet.com
On Wendesday’s edition, Jim raises his tgt on Google (GOOG) to $750. If Google earns $20 a share next year and continues its trend of 30% growth, it should hit $750, he reasons. He then said that a non-conservative but rational price estimate would be $900. Cramer believes that the co could easily capture 10% of the advertising market, bringing in $60 bln in advertising revenues. Next, he suggests Smith and Nephew (SNN) and Stryker (SYK). Stryker has so far avoided punishment with the Justice Dept., making it more attractive than Smith and Nephew. Furthermore, on pure growth, Stryker is cheaper. Once the DOJ investigation ends, Cramer believes Stryker will take off.