Data Feed

07:51 BRCM Broadcom: Solid growth story - Nollenberger (40.55 )

Nollenberger says that while the recent run-up in BRCM suggests that expectations are high ahead of the quarter, they recommend that investors build positions for strong fundamental performance over the next several years. Firm’s model suggests that BRCM’s growth opportunities should allow at least 17% rev CAGR over the next few years, which will drive greater than 30% EPS CAGR through CY09 — recent product and customer announcements imply that their ests may even be somewhat conservative.
07:49 T AT&T hits a high note with Instant Music Delivery from Napster Mobile (41.37 )

The co announces that “wireless customers will soon be able to download more than 5 mln full-track songs over the air from Napster (NAPS). Beginning in mid-November, the Napster Mobile service will enable AT&T wireless customers to easily search a music catalog with more than 5 mln songs, preview samples of each song and conveniently purchase and download their favorite music from their wireless handsets in less than a minute.”
07:49 YHOO Yahoo!: Alibaba IPO set to modestly lift Yahoo valuation - Jefferies (29.03 )

Jefferies notes that Alibaba.com filed its preliminary prospectus with the Hong Kong bourse, indicating its intent to go public in early Nov. Firm says that YHOO’s $1.4 bln investment in 39% of the Alibaba Group in 2005 is set to double in value, and the deal could add roughly $1 to each YHOO share.
07:49 PSO Pearson Plc reports 9 month results (15.61 )

Co reports results from the first nine months, reports revs up 6% and operating profits up 20% yr/yr. Co says “all our businesses are trading in line with, or ahead of, our previous guidance. For the full year, we remain on course to achieve strong underlying growth on our key financial measures: earnings, cash generation and return on invested capital.” Co sees School business revs around the top end of previous guidance of 4-6% and sees further margin improvement, Higher Education business revs around the top end of 3-5% range with stable margins, and Professional education business revs up 8-10%, compared to previous guidance of 5-7% with further margin improvement; co reaffirms FT Publishing to achieve double digit margins in Y07.
07:48 NVTL Novatel Wireless upgraded to Buy at Morgan Joseph- tgt $32 (23.85 )

Morgan Joseph upgrades NVTL to Buy from Hold with a $32 tgt based on a strong showing in the two final quarters of 2007, continuing through 2008. The firm suspects that Novatel’s business at Verizon remained robust through September, and they expect Novatel’s new USB727, simultaneously announced on both Sprint’s (S) and Verizon’s (VZ) wireless networks on Sept 27, should meet enthusiastic demand.
07:48 MT ArcelorMittal and Borusan announce $500 mln investment in new hot strip mill in Turkey (77.63 )

The co announces “a 50/50 joint venture partnership which will see a $500 mln investment in the construction of a new hot strip mill in Turkey. The mill, which will be located in Turkey next to ArcelorMittal and Borusan’s jointly operated Borcelik plant in Gemlik, on the Marmara sea coast, is planned to come online in first half 2010 with a capacity of 4.8 mln tons. Slabs for this hot strip mill will mainly be sourced from ArcelorMittal, which will ensure a regular supply of high quality products to better serve the booming Turkish steel mkt.”
07:42 MINI Mobile Mini issues mixed Q3 guidance; issues downside EPS guidance for Q4 (20.75 )

Co issues mixed guidance for Q3 (Sep), sees EPS of $0.34-0.35 vs. $0.40 Reuters Estimates consensus; sees Q3 (Sep) revs of $83.5 vs. $82.46 mln consensus. Co cites higher than expected fleet repair and maintenance expense and costs incurred in connection with reducing the scope of certain U.S. manufacturing operations in light of slower growth rates this year. Mobile Mini noted that the slower growth continues to be limited to certain geographic locations and that its European operations have continued to achieve exceptional growth. Co issues downside guidance for Q4 (Dec), sees EPS of $0.34-0.36 vs. $0.43 consensus.
07:41 TIBX TIBCO Software target raised to $10 at Jefferies after CEO says co is an attractive franchise (8.70 ) -Update-

Jefferies raises their tgt on TIBX to $10 from $7.50, saying TIBX could be the next likely co on their coverage list to be acquired. Firm says that industry sources tell them that mgmt rebuffed overtures earlier this year, yet they think holding out seems much harder with BEAS in play. Also, firm says TIBX CEO’s public statements on Friday that the co is an attractive target marks a distinct change.
07:38 GILT Gilat sizes up potential bidders - FT (10.32 )

FT reports the co is working with bankers at UBS to evaluate interest from several strategic and private equity buyers in buying the co. The co could fetch more than $500 mln in a sale, people familiar with the matter said. Bids are due at the end of this week, they added. Participating in the auction are several buy-out cos, including Gores Group of California and Apollo Mgmt, which has made numerous satellite investments in recent years and could fold Gilat into Hughes, one of its portfolio cos. Also in the running for Gilat is ViaSat (VSAT), a California-based rival satellite networking group.
07:38 BSC Bear Stearns confirms strategic alliance with CITIC Securities (116.41 ) -Update-

Co and CITIC Securities confirm an agreement in principle to establish a comprehensive strategic alliance. “This alliance will include sharing management expertise and technology to develop new capital markets products and businesses in China, establishing an exclusive joint venture combining the existing businesses of both companies in the rest of Asia, and cross-investments of approximately $1 bln in each firm by the other. The alliance will bring together Bear Stearns’ capital markets expertise globally and market leading analytics with CITIC Securities’ vast resources and extensive business network to better serve clients worldwide.” The strategic alliance between BSC and CITIC Securities will include broad collaboration in the People’s Republic of China. The companies will work together to develop new financial products and services to meet the evolving needs of the Chinese market.
07:37 KMB Kimberly-Clark beats by $0.01, beats on revs; guides FY07 EPS in-line (67.14 )

Reports Q3 (Sep) earnings of $1.07 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of $1.06; revenues rose 9.8% year/year to $4.62 bln vs the $4.51 bln consensus. Co issues in-line guidance for FY07, sees EPS of $4.23-4.25, compared to previous guidance of $4.20-4.25, vs. $4.25 consensus. CEO says, “The underlying strength of our business results through the first nine months gives us confidence that we will continue to execute our Global Business Plan well over the balance of the year. We expect top-line momentum will remain positive, paced by continued strong performance in developing and emerging markets and success of our other targeted growth initiatives, particularly in Personal Care and K-C Professional. We also will continue to drive costs out of the system through our FORCE and strategic cost reduction efforts. These factors, combined with benefits from our accelerated share repurchase, should enable us to overcome significant inflationary pressures and deliver another quarter of solid bottom-line growth. Meanwhile, our plans incorporate further increases in spending for strategic marketing to support volume growth and improve brand equity, as we remain committed to boost spending above the rate of sales growth this year.”
07:37 TMA Thornburg Mortg CEO buys 1 mln shares at $9.50 (9.46 -0.30)
07:36 WAG Walgreen upgraded to Overweight from Equal Weight at Morgan Stanley (37.85 )
07:34 MRK Merck beats by $0.06, reports revs in-line; raises FY07 EPS above consensus (23.11 )

Reports Q3 (Sep) earnings of $0.75 per share, excluding non-recurring items, $0.06 better than the Reuters Estimates consensus of $0.69; revenues rose 12.3% year/year to $6.07 bln vs the $6.03 bln consensus. Co issues upside guidance for FY07, sees EPS of 3.08-3.14 vs. $3.06 consensus, prior guidance $3.00-3.10.
07:33 MICC Millicom: Africa remains the focus for 3Q07 results - Morgan Joseph (87.02 )

Morgan Joseph expects MICC to report strong, double-digit growth for both rev and EBITDA in 3Q07 as the co continues its high-growth earnings trajectory and benefits from: 1) strong subscriber growth thanks in part to per-second billing shifts in Latin America; 2) continued operational improvements in Africa; and 3) reset Street ests following the lofty expectations for 2Q07. Overall, they remain bullish on the co’s ability to exploit growth in its targeted emerging markets along with its attractive valuation and underleveraged balance sheet.
07:33 ATG AGL Resources issues Q3 downside guidance; sees Y07 EPS to be at low end of previous guidance (38.25 )

Co sees Q3 EPS of $0.16-0.18 vs $0.34 consensus. Co sees Y07 EPS to be at lower end of previously announced guidance of $2.75-2.85 vs $2.80 consensus. These results are principally due to lower contributions from the Wholesale Services segment (Sequent Energy) driven by lower volatility in the natural gas wholesale market. The reduction in natural gas price volatility has limited Sequent’s opportunity to generate margins from storage and transportation arbitrage. The current expectation is that earnings in the Wholesale Services segment will be below the 2007 EBIT contribution range included in the co’s previously announced earnings guidance, but will be partially offset by improved results in the company’s other business segments. CEO says, “While our other business units, including our core utility business, have seen strong year-to-date results and remain on track to meet or exceed our expectations, we clearly have seen and continue to see a lack of volatility in the natural gas markets that has impacted Sequent’s ability to generate economic value.”
07:33 PRICE Filings, Offerings, Pricings and IPOs

Filings: Arena Pharm (ARNA) files for a common stock shelf offering… DCP Midstream (DPM) files for a 5.38 mln common unit offering by selling shareholders… MFA Mortgage (MFA) files for a mixed shelf offering… Comverge (COMV) files for a $200 mln common stock shelf offering… Progressive Gaming (PGIC) files for a $50 mln common stock shelf offering.
07:32 KMB sees FY07 $4.23-4.25 vs $4.25 Reuters consensus
07:31 MRK sees FY07 $3.08-3.14 vs $3.06 Reuters consensus
07:31 KMB prelim $1.07 vs $1.06 Reuters consensus, $1.06 First Call; revs $4.62 bln vs $4.51 bln Reuters consensus
07:31 ATG sees Y07 EPS to be at lower end of previously announced guidance of $2.75-2.85
07:30 TEVA Teva Pharm announces that Adenoscan patent lawsuits settled (44.42 )

Astellas Pharma, King Pharmaceuticals (KG) and Teva Pharmaceutical Industries (TEVA) announce that US subsidiaries of Astellas, along with Item Development A.B and KB have executed settlement agreements with one of TEVA’s subsidiaries on lawsuits filed in the United States against TEVA’s subsidiaries regarding their submission of an abbreviated new drug application for a generic version of Adenoscan (adenosine injection), a pharmacologic stress agent. Under the terms of the settlement agreement, TEVA will be able to launch their generic version of Adenoscan pursuant to a license in September 2012, or earlier under certain conditions. Except as described, the terms of the settlement are confidential. Subject to the Court’s approval, the cases will be dismissed and the patents remain in place including U.S. Patent No. 5,731,296, which expires in March 2015 and U.S. Patent No. 5,070,877, which expires in May 2009.
07:30 MRK prelim $0.75 vs $0.69 Reuters consensus; revs $6.07 bln vs $6.03 bln Reuters consensus
07:30 ATG sees Q3 EPS of $0.16-0.18 vs $0.34 consensus
07:30 IMAX Imax signs theatre deal in Morocco (4.31 )

Co announces an agreement with Al Amine Investissement to install an IMAX theatre in the city of Casablanca. The announcement marks IMAX’s first contract in Morocco.
07:28 BDX Becton Dickinson CEO appears on CNBC to discuss co’s test to detect “superbug” staph infections (81.74 )
07:26 RSYS RadiSys upgraded to Buy at Cantor Fitzgerald - tgt raised to $18 from $11 (11.72 )

Cantor Fitzgerald upgrades RSYS to Buy from Hold and raises their tgt to $18 from $11 saying they are comfortable with their 3Q:07 and 4Q:07 revenue estimates and they believe that there are a number of recent data points that point to an improving longer term picture for Radisys.
07:26 ACI Arch Coal: Slightly lower 3Q07 but 2007 intact and positoned well - FBR (35.30 )

Friedman Billings notes ACI reported 3Q07 EPS/EBITDA slightly below expectations at $0.19/$109 mln vs consensus of $0.27/$123 mln and FBR ests of $0.34/$120 mln. Firm raises 4Q07 to essentially keep 2007 unchanged but raise 2008 slightly for higher production expectations. Firm believes the stock is mostly outside the main investor fairway of hot areas and any pullback provides significant opportunity. Firm kindly reminds investors of the following: 1) mgmt’s great discipline; 2) cash flow that continues to grow ($350 mln free cash flow in 2008), 3) extra value from excess productive capacity, 4) PRB trends that are moving more favorably (prices, inventory draw, and new plant demand is mostly PRB), and 5) small exposure from Central Appalachian (CAPP) mining issues described previously.
07:26 FHN First Horizon: GAAP loss on weak mortgage, cap markets ops; tgt cut to $25 - FBR (24.24 )

Friedman Billings notes FHN reported a 3Q07 GAAP EPS loss of $0.11. While net interest margin expanded and expenses declined, results were considerably weaker than low-bar expectations. Capital markets revs were hindered by last summer’s market volatility. In the bank, credit metrics weakened swiftly. First Horizon National’s shares trade at a premium 22.4x and 21.6x their respective revised 2007-2008 operating EPS ests of $1.08 and $1.12. Despite the high earnings multiple, firm views the stock as fairly valued at 1.46x 3Q07 tangible book value. Firm reduces their tgt to $25 from $32.
07:25 Yen rises to 6-wk on concern global growth will slow - Bloomberg

Bloomberg reports the yen rose against the 16 most actively traded currencies as global stocks slumped after the Group of Seven nations said near-record oil prices and a housing slowdown in the U.S. will curb global growth. The Japanese currency rose to a six-week high against the dollar after the G-7 said in a statement on Oct. 19 that the financial-mkt turmoil “will likely moderate” world economic expansion. Asian stocks fell the most in two months as investors reduced carry trades in yen. The dollar also traded at a record low against the single European currency. The yen rose to 113.71 per dollar as of 10:06 a.m. in London, from 114.51 in New York on Oct. 19.
07:25 UB UnionBanCal tgt cut to $56 at FBR (53.37 )

Friedman Billings cuts their tgt on UB to $56 from $65 following co’s 3Q07 GAAP/ operating EPS of $1.08, $0.06 and $0.05 below firm’s $1.14 and consensus’ $1.13 ests and less than the co’s guided range of $1.12 to $1.17. While the miss is largely explained by nonrecurring tax items, fundamental trends were disappointing, and mgmt reduced earnings guidance for 4Q07. Firm reduces their respective 2007 and 2008 operating EPS ests to $4.43 (from $4.57) and $4.50 (from $4.92).
07:25 IIVI II-VI Inc: Expect an in-line quarter with positive development on yield issues; tgt raised to $40 - Broadpoint Capital (34.84 )

Broadpoint Capital expects an in-line Sept quarter and positive comments on yield issues. Firm expects IIVI to report an in-line Sept quarter and to talk about positive developments on the yield improvement front. As a reminder, IIVI had experienced yield issues in its materials business, which resulted in some loss of revenue in the first half of CY07. Firm expects acquisitions to continue to be a key growth driver for the co. Firm raises their tgt to $40 from $35.
07:24 CACH Cache: 3Q07 earnings preview - Broadpoint Capital (16.44 )

Broadpoint Capital notes CACH will report 3Q07 results on Wed, Oct 24, before the market opens. Firm expects CACH to meet their 3Q07 EPS est of $0.01, which is in line with the Street consensus of $0.01. Firm notes that on Oct 11, mgmt raised 3Q07 EPS guidance to $0.00-$0.01. CACH reported EPS of $0.04 in 3Q06. Excluding one-time items, it earned $0.05 in 3Q06. Firm continues to receive positive comments regarding the Contour collection, which was launched in Aug and was featured prominently in the front center of the stores in Sept. Firm expects this strength to continue through 4Q07.
07:24 ASH Ashland downgraded to Underperform at Credit Suisse- tgt $66 (63.27 )

Credit Suisse downgrades ASH to Underperform from Neutral and cuts their tgt to $66 from $69 saying based on their belief that the pressures seen in their fiscal 4Q07 earnings pre-announcement will continue to keep pressure on ASH earnings through 2008.
07:24 EWBC East West Banc tgt cut to $37; strong loan growth offset by reserve build - FBR (34.60 )

Friedman Billings cuts their tgt on EWBC to $37 from $41 and lowers their FY07 and FY08 EPS ests by $0.02 and $0.15, to $2.63 and $2.65, respectively, reflecting higher delinquencies, provision expense, slower loan growth, and greater NIM compression. Firm continues to remain on the sidelines, as they believe share upside is limited over the next year due to the premium valuation of the shares versus the industry in the context of flat EPS growth.
07:23 Friedman Billings highlights APC & DVN deepwater subsalt potential; catalysts on horizon

Friedman Billings says being bullish on the prospectivity of the emerging subsalt deepwater Gulf of Mexico play, they believe that over the course of the next 12 months, via high impact industry-wide exploration results and development projects expected to be sanctioned by the industry, the prospect of significant reserve additions in the subsalt deepwater GOM will become high enough to warrant a revaluation of major participants. As they head towards the end of the year, firm’s attention turns increasingly to Anadarko and Devon - the two E&Ps with best exposure to the burgeoning subsalt deepwater GOM - and the several near-term catalysts on the horizon for each. Within the next few months, firm believes results on Anadarko’s Cortez Bank, West Tonga, and Atlas exploration wells; and on Devon’s Cortez Bank, Chuck, St. Malo appraisal, Jack appraisal wells, could serve as catalysts for increased deepwater value recognition and drive share price appreciation.
07:23 JASO JA Solar tgt raised to $61 at CIBC; additional wafer supply to increase earnings (49.94 )

CIBC raises their tgt on JASO to $61 from $44 on the co’s increased earnings potential following the completion of the secondary offering. With the cash raised, mgmt will expand capacity more rapidly than anticipated and has secured all wafer needs to meet their revised ests. At this point, firm believes JASO is the only Chinese co in their coverage universe with all of its wafer needs secured through 2008. Given polysilicon tightness remaining next year, they see this as a key advantage. Also, firm believes JASO will post very strong 3Q results ahead of Street expectations as the co has de-bottlenecked existing capacity, likely resulting in greater shipment volumes.
07:23 LDK LDK Solar: Further color on agreement to supply wafers to Canadian Solar (35.73 )

As mentioned at 4:14, LDK announced hat it has signed a 3-yr contract to supply multicrystalline solar wafers to Canadian Solar (CSIQ). Under the terms of the agreement, LDK will deliver multicrystalline solar wafers to Canadian Solar valued at approximately RMB 4 bln over a 3-yr period, with delivery commencing in 2008. The total contracted delivery in 2008 is 50 MW.
07:22 WU Western Union: 3Q07 preview; expect positive momentum to continue - Calyon (18.43 )

Calyon expects WU to report 3Q07 GAAP EPS of $0.28 (in line with consensus) on Tuesday, Oct 23rd before the market opens. Firm believes that the co is building strategic momentum. Last week, co announced two strategic moves with very favorable long-term implications: 1) a deal with the GSMA to begin wide-scale mobile phone money transfers and 2) a deal to become the exclusive provider of money transfer services for Wal-Mart Canada’s 287 locations.
07:22 GME Gamestop: Nollenberger raising ests and tgt to reflect strong fundamentals (56.74 )

Nollenberger reiterates their Buy rating on GME given their view that the co will continue to benefit from strong underlying market fundamentals. Given stronger than expected industry sales in Sept, firm is increasingly confident that GME could exceed near-term expectations. Moreover, firm expects this momentum to persist through the holiday season given the strong lineup of new software titles and continued strength in hardware demand, which is likely to get an additional boost from a PS3 price cut. Firm increases their earnings ests but believes there could be further upside to their numbers over the next few quarters. Firm raises their tgt to $68 from $60 as they believe upwardly revised earnings ests and multiple expansion will continue to underpin higher valuations from current levels.
07:21 NTCT NetScout Systems: Upcoming events continue to offer potential valuation upside - Nollenberger (12.76 )

Nollenberger believes the appreciation in NetScout’s share price over the past month has been due largely to the positive reaction to the announced plan for the company to acquire Network General. Firm believes further stock upside will occur over upcoming quarters as additional “shoes” drop.
07:21 TASR TASER: Weakness caused by negative Canadian press; buying opportunity ahead of Wed’s Q3 results - Merriman (15.60 )

Merriman says over the past week, there have been numerous articles in the Canadian press regarding two deaths that occurred after a TASER was used to subdue each individual. The press was quick to blame the deaths on the TASER before an investigation or autopsy had been completed in each case. Firm notes TASERs have never been found as the primary cause of death in any situation and there has always been another primary cause, usually involving drugs or a medical condition. Nevertheless, they believe it has been this constant negative press that has led to the 15% drop in TASR shares in the past week. Firm believes the 15% drop over the past week provides an attractive entry point. With their expectations for upside 3Q results on Wednesday, coupled with a positive 4Q outlook, they believe investors will quickly overlook the press reports of the past week.
07:20 MRO Marathon Oil: Hearing reinstated with a Buy at tier 1 firm (58.11 )
07:20 GTLS Chart Indust profiled in New America section of IBD (30.88 )

IBD reports the co makes equipment used in production, storage and end use of hydrocarbon and industrial gases. Chart is tapping into the demand for natural gas, which in turn has created a strong mkt for liquefied natural gas, or LNG. Natural gas converted to liquid form is easier to store and transport. An LNG plant consists of one or more LNG trains, each an independent unit for gas liquefaction. Chart’s E&C segment products, at 35% of 2006 sales, include heat exchangers, which are used to cool natural gas for liquefaction or separation into components. Major customers include XOM and COP. The biggest unit, at 50% of 2006 sales, is Distribution and Storage. It sells cryogenic equipment to the global bulk and packaged industrial gas markets. Clients include Air Products (APD) and Air Liquide. The co also has a biomedical arm, with 15% of 2006 sales. That builds on Chart’s expertise in cryogenics, focusing on the medical and biological uses of liquids and gases. The E&C segment was the big winner in the second quarter. Chart landed orders of more than $240 mln, up almost 40% from the first quarter. Analysts polled by Thomson Financial expect full-year profit to jump 56% to $1.62 a share, then another 31% in 2008.
07:16 OXY Occidental Petro downgraded to neutral from buy at tier 1 firm (66.71 )
07:16 WIRES On The Wires

Antares Pharma (AIS) announces that the first patients have been dosed in the pivotal trial designed to evaluate efficacy of Anturol when administered topically once daily for 12 weeks in patients predominantly with urge incontinence episodes… Willi-Food International (WILC) announce\s that it had signed a binding term sheet with the owners of the Russian dairy distributor, who is a leading supplier and importer of dairy products in Russia, to form a new joint co… Avant Immunotherapeutics (AVAN) and Celldex Therapeutics announce the signing of a definitive merger agreement… Paramount Gold and Silver (PZG) announces that it has received the assay results from the first ten drill holes in the La Veronica area of its San Miguel project in the Guazapares Mining District, Mexico. The assay results confirm that mineralization persists for at least 70 meters below the surface exposures.
07:16 CPA Copa Holdings: Hearing downgraded to neutral from buy at tier 1 firm (37.63 )
07:15 MPR Met-Pro Corp downgraded to Hold at Brean Murray (17.62 )

Brean Murray downgrades MPR to Hold from Buy saying the improvements in the co’s underlying business model have resulted in higher sales and earnings, which have translated into a higher share price for investors. With the shares now trading essentially at the firm’s fair value estimate of $18, they believe now is an appropriate time for shareholders to refrain from further accumulation while previous gains are consolidated.
07:15 LULU Lululemon Athletica: Hearing downgraded to neutral from buy at tier 1 firm (55.23 )
07:07 CALLS Early Research Calls IV

Upgrades: Bear Stearns upgrades Interpublic (IPG 9.93) to Outperform from Peer Perform…Citigroup downgrades Anglo American (AAUK 32.31), BHP Billiton (82.64), and Rio Tinto (RTP 341.14) to Hold from Buy based on valuation… Citigroup upgrades Xerox (XRX 16.67) to Hold from Sell. Downgrades: BofA downgrades Robert Half (RHI 30.50) to Neutral from Buy… Citigroup downgrades Dupont (DD 46.87) to Hold from Buy… Deutsche Bank downgrades Raiation Therapy (RTSX 21.56) to Hold from Buy. Miscellaneous: Susquehanna initiates Obagi Medical Products (OMPI 20.21) with a Positive.
07:04 PLUG Plug Power receives fuel cell order from national retailer (2.97 )

Co, through its wholly owned subsidiary Cellex Power Products, announces a purchase order for GenDrive fuel cell power units from Wal-Mart Stores (WMT) for use in lift trucks at one of the co’s distribution centers. This is Plug Power’s largest single GenDrive order to date, although the specific terms are confidential.
07:03 MHS Medco Health Solutions, LabCorp strike strategic agreement for research on personalized medicine and pharmacogenomics (89.41 )

Medco Health Solutions (MHS) and Laboratory Corporation of America Holdings (LH) announces a strategic research agreement to advance the field of pharmacogenomics, an emerging science integrating genetics and drug treatment that is leading the way toward personalized medicine. The research effort, which will be centered on tamoxifen, is the latest in a rapidly growing field of studies linking individual genetics to the safety and efficacy of specific prescription drugs. Genotyping for the study will be performed using the FDA-cleared Roche AmpliChip CYP450 test. Approximately 10 percent of women using tamoxifen do not fully benefit from the drug because of variations in genes encoding drug metabolizing enzymes.
07:03 GSK GlaxoSmithKline: Study results reveal alli patient satisfaction linked to weight loss achieved; not treatment effects (50.76 )

Data presented at the 2007 Annual Scientific Meeting of NAASO, The Obesity Society, found that patient satisfaction with alli, was connected to the product’s effectiveness in helping them lose weight, and not to potential gastrointestinal treatment effects. This is important because these data show that the weight loss achieved with alli strongly motivates subjects to continue treatment regardless if they are experiencing treatment effects.
07:03 BOH Bank of Hawaii beats by $0.01 (49.35 )

Reports Q3 (Sep) earnings of $0.96 per share, $0.01 better than the Reuters Estimates consensus of $0.95.
07:02 PTA Penn Treaty Am announces new Board Chairman (5.72 )

Co announces that the Chairman of its Board, Gary Hindes, resigned effective Oct 19, 2007. Hindes is a Managing Director at Deltec Asset Management where he oversees the firm’s distressed securities operations. A new investor in one of the private investment funds which Hindes manages at Deltec has required that he not serve on any public company board or committee. The Board has chosen Eugene Woznicki to succeed Hindes.
07:02 ASTE Astec Industries misses by $0.19, misses on revs (57.05 )

Reports Q3 (Sep) earnings of $0.51 per share, $0.19 worse than the Reuters Estimates consensus of $0.70; revenues rose 20.3% year/year to $206.2 mln vs the $217 mln consensus. “We are pleased with the 2007 third quarter sales increase of 20.2% compared to the third quarter of 2006. The gross margin for the quarter was impacted by the shipment of some new models of equipment. S,G,A&E expenses were impacted by an increase in the Supplemental Executive Retirement Plan expense due to the increase in the value of our stock. We also increased our costs related to salaries and benefits by hiring additional staff in order to generate and support increased sales volumes. We are excited about the prospects for the fourth quarter and look forward to finishing another strong year.”
07:02 CEN Ceridian reports EPS in-line, revs in-line (35.45 )

Reports Q3 (Sep) earnings of $0.31 per share, excluding non-recurring items, in-line with the Reuters Estimates consensus of $0.31; revenues rose 6.7% year/year to $412.4 mln vs the $412.9 mln consensus.
07:02 THRX Theravance receives FDA approvable Letter for Telavancin for the treatment of complicated skin and skin structure infections (25.46 )

Co and Astellas Pharma US announce that the FDA issued an Approvable Letter for telavancin, a novel bactericidal, once-daily injectable antibiotic discovered by Theravance, for the treatment of complicated skin and skin structure infections caused by Gram-positive bacteria, including resistant pathogens such as methicillin-resistant Staphylococcus aureus. The Approvable Letter indicates that the telavancin application is approvable, subject to: resolution of current good manufacturing practices compliance issues not specifically related to telavancin at a third-party manufacturer; and submission of revised labeling or re-analyses of clinical data or additional clinical data. Theravance and Astellas believe that no additional clinical studies will need to be initiated to respond to the Approvable Letter. (Briefing.com note: For more color on the name, see our preview from Oct 18).
07:01 CEN prelim $0.31 vs $0.31 Reuters consensus; revs $412.4 mln vs $412.94 mln Reuters consensus
07:00 ASTE prelim $0.51 vs $0.70 Reuters consensus, $0.69 First Call; revs $206.2 mln vs $216.95 mln Reuters consensus
06:58 CALLS Early Research Calls III

Upgrades: J.P Morgan upgrades Sericycle (SRCL 52.04) to Overweight from Neutral… Friedman Billings upgrades IMS Health (RX 23.89) to Outperform from Market Perform and raises their tgt to $29 from $27 based on valuation. The firm says they believe the co will likely announce a large new buyback authorization and should be able to lever up its balance sheet to execute on a significant accelerated share repurchase program that improves 2008 EPS outlook. Downgrades: J.P Morgan downgrades Dollar Tree (DLTR 37.46) to Underweight from Neutral… Friedman Billings downgrades Nelnet (NNI 18.49) to Underperform from Market Perform and cuts their tgt to $18 from $24 saying they believe Nelnet will face significant spread compression (legislative and company-specific), which, along with a significant decline in consolidation loan originations, presents serious growth challenges for the company… CIBC downgrades Angiotech Pharma (ANPI 4.9 following disappointing preliminary Q3 results. The firm says just as the D.E.S market appears to be stabilizing, the outlook for the medical products business is unclear. They say this announcement has hurt credibility, and with limited near-term catalysts… CIBC downgrades Ritichie Brothers Auctioneers (RBA 71.44) to Sector Perform from Underperform and raises their tgt to $65 from $63 saying they have a mixed outlook for the heavy equipment group due to ongoing softness in U.S. construction while robust economic growth in Asia continues to drive demand for commodities. Firm says their main concern is potential changes to the Alberta royalty regime negatively impacting development.
06:57 SGP Schering-Plough misses by $0.02, misses on revs (32.71 )

Reports Q3 (Sep) earnings of $0.28 per share, excluding non-recurring items, $0.02 worse than the Reuters Estimates consensus of $0.30; revenues rose 9.2% year/year to $2.81 bln vs the $2.88 bln consensus.
06:44 CALLS Early Research Calls II

Upgrades: UBS upgrades Altria (MO 70.50) to Buy from Neutral. Downgrades: UBS downgrades Sepracor (SEPR 23.71) to Sell from Neutral… RBC downgrades Angiotech Pharma (ANPI 4.9 to Sector Perform from Outperform… Piper Jaffray upgrades Overstock.com (OSTK 32.04) to Market Perform from Underperform… Lehman downgrades Specialty Finance stocks to Neutral from Positive, the firm downgrades American Express (AXP 57.11), Capital One (COF 62.8 and Discover (DFS 19.80) to Equal Weight from Overweight… Lehman downgrades Universal Technical Institute (UTI 18.75) to Underweight from Equal Weight… Lehman downgrades Countrywide (CFC 15.23) and IndyMac (IMB 14.75) to Underweight from Equal Weight… Lehman downgrades Washington Mutual (WM 29.09) to Equal Weight from Overweight… Lehman downgrades PMI Group (PMI 20.62) to Underweight from Overweight. Miscellaneous: Montgomery resumes Microsemi (MSCC 26.55) with a Buy and sets a $34 tgt, as they believe Microsemi’s core business is on track and gaining momentum through leveraging its diverse business opportunities in both high-reliability and high-performance analog, mixed-signal technologies… JMP Securities assumes NxStage Medical (NXTM 13.94) with a Market Outperform and sets a $17 tgt, based on its best in class home hemodialysis system, significant runway for its business model and savvy business decisions to improve its profitability profile… RBC initiates Encore Energy (ENP 20.40) with an Outperform and a $26 tgt… Lehman reinstates MGIC (MTG 21.59) and Radian (RDN 14.01) with Underweights.
06:43 Sensex ends up 54pts, HDFC gains 7% - The Business Standard

The Business Standard reports the Sensex opened with a huge negative gap of 300 points at 17,260, and dropped to a low of 17,171 in early trades. Buying at lower levels saw the index recoup all the losses, and zoom to a high of 17,705 -an intra-day gain of over 500 points. After exhibiting extreme volatility in late noon deals, the Sensex finally closed with a gain of 54 points at 17,614. The BSE Bankex gained over 2% to close at 9029. The BSE FMCG and Capital Goods indices also closed with gains. The BSE Oil & Gas Index declined 1.6% to 10,080. The BSE Teck, PSU and Realty indices also dropped today. Advances and declines were evenly matched -out of 2,754 scrips traded, 1,344 advanced and 1,339 declined.
06:43 Asian stocks fall on concern growth to slow; toyota, BHP drop - Bloomberg.com

Bloomberg.com reports Asian stocks fell the most in two months after the Group of Seven industrialized nations said the global economy is slowing. U.S. stock futures dropped. The Philippines’ key stock index tumbled 4%, after a bomb blast on Oct. 19 at a shopping mall killed 11 people and injured 91 in the capital’s financial district… In Japan, the Nikkei 225 Stock Average slid 2.2% to 16,438.47, its lowest close since Sept. 26. South Korea’s Kospi fell 3.4%, led by Samsung Electronics.
06:43 Global stocks, U.S. futures drop; BHP Billiton, Toyota decline - Bloomberg.com

Bloomberg.com reports Stocks in Europe and Asia fell after the Group of Seven finance ministers and central bankers said the credit-market turmoil, record oil prices and a housing slump will sap economic growth. U.S. index futures dropped… Europe’s Dow Jones Stoxx 600 Index lost 1.5% to 375.3. National benchmarks slid in all of the 17 western European markets that were open. The U.K.’s FTSE 100 fell 1.3% and Germany’s DAX sank 0.5%. France’s CAC 40 retreated 1.8%.
06:38 ADCT ADC announces agreement to acquire LGC wireless (19.03 )

Co announces an agreement to acquire LGC Wireless for a total valuation of approx $169 mln. Acquisition is is expected to be non-dilutive to EPS in fiscal 2008 and around $0.02-0.04 accretive in FY09, excluding acquisition-related charges, acquired intangibles amortization and stock option expense.
06:36 WIRES On The Wires

Cardiac Science (CSCX) announces it has completed its pilot program and has begun full shipments of its new “crash cart” defibrillator as part of an existing agreement with GE Healthcare… Genesee & Wyoming (GWR) announces that it has entered into an agreement to acquire 87.4% of Maryland Midland Railway for cash consideration of approximately $29.1 mln with adjustments for working capital at the time of closing… Syntax-Brillian (BRLC) announces it has signed an agreement in principle to sell its operations in Tempe dedicated to the manufacture of LCoS microdisplays and light engines. It is anticipated that the transaction will be completed in Nov.
06:31 HAS Hasbro beats by $0.07, beats on revs (28.41 )

Reports Q3 (Sep) earnings of $0.78 per share, excluding non-recurring items, $0.07 better than the Reuters Estimates consensus of $0.71; revenues rose 17.7% year/year to $1.22 bln vs the $1.14 bln consensus.
06:31 TPTX TorreyPines Therapeutics says tezampanel meets primary endpoint in Phase IIb clinical trial in acute migraine headache (5.73 )

Co announces that tezampanel met the primary endpoint in a 306-patient, Phase IIb clinical trial for the treatment of a single, acute migraine attack. In the study the 40 mg dose demonstrated statistically significant improvement on headache pain response at two hours post-dose compared to placebo and the response was sustained through 24 hours post-dose. Although not powered to demonstrate statistical significance, improvement in key secondary measures at 40 mg, nevertheless, were either statistically significant or trending when compared to placebo and corroborated the results for the primary endpoint of the study. These key secondary measures included nausea or vomiting, photophobia, a sum of pain intensity scores at three and four hours post-dose, sustained headache response at 24 hours, functional disability and a composite score of core migraine symptoms at two and four hours post-dose that included measures of headache severity, nausea, vomiting, photophobia, phonophobia and functional disability. Two other doses of tezampanel, 70 mg and 100 mg, were evaluated and also demonstrated effects across various pain measures although neither dose reached statistical significance on the primary endpoint. The company intends to submit the data from this trial to the FDA in order to initiate a Phase III program in acute migraine in the second half of 2008.
06:30 XTNT Xtent announces ‘positive’ two-year Custom I and one-year Custom II trial data for novel drug-eluting stent system (9.87 )

Co announces positive long-term follow-up data from the Custom I and Custom II single-arm prospective studies evaluating the safety and efficacy of its Custom NX drug-eluting stent system in patients with coronary artery disease. At one-year Custom II clinical follow-up and at two-year Custom I clinical follow-up, no new major adverse cardiac events were reported. The incidence of late stent thrombosis for patients treated with Custom NX in both trials was zero percent.
06:28 PVTB PrivateBancorp reports EPS in-line (28.22 )

Reports Q3 (Sep) earnings of $0.42 per share, in-line with the Reuters Estimates consensus of $0.42.
06:26 WFT Weatherford beats by a penny (61.00 )

Reports Q3 EPS of $0.85 vs $0.84 consensus; revs $1.97 bln vs $1.99 bln consensus.
06:24 S&P futures vs fair value: -13.5. Nasdaq futures vs fair value: -14.3.
06:24 CALLS Early Research Calls I

Upgrades: Deutsche Bank upgrades Citrix Systems (CTXS 39.65) to Buy from Hold and raises their tgt to $49 from $43, based on increasing conviction that XenSource is a legitimate #2 vendor in the virtualization market and the potential for a better than expected contribution from XenSource in Q4… Jefferies upgrades Clearwire (CLWR 19.17) to Buy from Hold and lowers their tgt to $24 from $34, based on valuation. Downgrades: Wachovia downgrades Applebee’s International (APPB 25.13) to Underperform from Market Perform, reflecting their view that there is greater potential for downside risk in the event that the IHOP transaction doesn’t go through… Baird downgrades Kendle International (KNDL 42.95) to Neutral from Outperform and lowers their tgt to $46 from $47, based on valuation, risk in 2H guidance and complications with the near-term story due to two one-time optics issues… Deutsche Bank downgrades Radiation Therapy (RTSX 21.56) to Hold from Buy and raises their tgt to $32.50 from $29, following the co’s announcement to go private at a take-out offer price of $32.50/share… Friedman Billings downgrades Cathay General Bancorp (CATY 29.36) to Underperform from Market Perform and lowers their tgt to $25 from $32, based on a deterioration in loans 30-89 days past due in Q2…Merriman downgrades Fuel-Tech (FTEK 32.30) to Sell from Neutral, based on extensive independent channel checks that indicate that the competitive landscape in terms of both pricing and market share is more challenging than commonly perceived for the Fuel Chem product line.
06:22 European Markets

FTSE…6447.70…-80.20…-1.2%. DAX…7782.78…-101.36…-1.3%.
06:22 Asian Markets

Nikkei…16438.47…-375.90…-2.2%. Hang Seng…28373.63…-1091.42…-3.7%.
06:18 SGP Schering-Plough reports two Phase II studies of thrombin receptor antagonist build on findings from previous Phase II study (32.71 )

Co provides an update on the clinical development program for its oral thrombin receptor antagonist. Results from two randomized, double-blind, placebo-controlled Phase II studies in patients with vascular disease showed that TRA does not increase the rate of major or minor bleeding in patients with acute coronary syndrome or prior ischemic stroke when added to standard antiplatelet therapy. The trials were conducted in Japan as part of the global registration program for TRA. A secondary objective was to assess whether patients treated with TRA in addition to standard of care therapy had fewer major adverse cardiovascular events such as myocardial infarction compared to patients treated with the standard of care alone. While not powered to establish efficacy, in the acute coronary syndrome study patients undergoing percutaneous coronary intervention treated with TRA had a statistically significant reduction in myocardial infarctions during the periprocedural period compared to standard of care alone.
06:15 HAR KKR and GS Capital Partners to invest in Harman International (86.40 ) -Update-

Co announces that it has entered into an agreement with affiliates of Kohlberg Kravis Roberts & Co. and GS Capital Partners relating to the parties’ previously announced Merger Agreement. Terms of the new agreement include the following: KKR and GSCP will purchase $400 mln of 1.25% senior notes convertible under certain circumstances into Harman common stock, convertible at a price of $104 per share. KKR and GSCP have agreed to not sell or hedge their position for at least one year. The parties have agreed to terminate their Merger Agreement dated April 26, 2007 without litigation or payment of a termination fee.
06:12 RGS Regis misses by $0.01, reports revs in-line; guides Q2 EPS in-line, revs above consensus; guides FY08 EPS in-line, revs above consensus (33.71 )

Reports Q1 (Sep) earnings of $0.46 per share, $0.01 worse than the Reuters Estimates consensus of $0.47; revenues rose 4.4% year/year to $667.5 mln vs the $662.9 mln consensus. Co issues guidance for Q2, sees EPS of $0.51-0.57 vs. $0.57 consensus; sees Q2 revs of $690-700 mln vs. $675.66 mln consensus. Co issues guidance for FY08, sees EPS of $2.01-2.27 vs. $2.19 consensus; sees FY08 revs of $2.75 bln vs. $2.70 bln consensus.
05:55 WIRES On The Wires -Update-

BluePhoenix Solutions (BPHX) announces that it has won a contract to convert PowerBuilder applications to Java for a global telecommunications co.
05:53 TM Toyota sells 2.34 mln vehicles in Q3 - AP (106.40 )

AP reports Toyota (TM) said Monday it sold 2.34 mln vehicles globally in the July-September quarter, fewer than General Motors’ (GM) tally, as its U.S. rival regained the lead in the race to be the world’s top automaker. Toyota’s worldwide vehicle sales for the first nine months of this year — at 7.05 mln vehicles — also fell short of GM sales of 7.06 mln vehicles for the same period. But the numbers Toyota released Monday show the co running neck-and-neck against General Motors, which sold 2.38 mln vehicles in Q3. Toyota’s global vehicle sales for the latest quarter grew 4% from the same period a year ago, while sales for the first nine months of the year grew 7%.
05:49 ABN ABN has offers for Saudi Hollandi stake: Report - Reuters (53.75 )

Reuters reports ABN Amro (ABN) has received offers for its 40% stake in Saudi Hollandi Bank, the Saudi lender’s chairman, Sulaiman al-Suhaimi, said in remarks published in Middle East Economic Digest on Sunday. ABN has informed Hollandi that it had received offers to buy the stake and the offers have passed on to Saudi authorities, Asharq al-Awasat quoted Suhaimi as saying. ABN’s shares could also be sold to the public via the stock market, he said, according to the paper. It did not name the bidders.
05:46 AVP Avon makeover isnt’ cosmetic - WSJ (36.19 )

The Wall Street Journal reports unlike many companies over the past year that have borrowed funds to pay for share repurchases or restructurings, Avon (AVP) has taken the more conservative route of financing these activities through internally generated cash. It means Avon is better positioned than more indebted firms in the event of a business downturn, because it won’t be saddled with making large fixed payments. It also can always stop buying back shares if it needs the cash. As of the end of June, Avon’s net debt as a proportion of its Ebitda is just 1.0x, which is so low that some investors lament that it should borrow more money to be more efficient. Its operating income as a proportion of its interest expense is a robust 9.7x. The EPS boost some investors expect from the buyback’s share-count reduction is only about 2% a year. Still, it could help push Avon’s yield on free cash flow to a respectable 5% by 2008, if the co’s projected $700 mln in cost savings and hefty investments in advertising and other initiatives expand its operating margin to the 15% range. Currently, free-cash-flow yield is 3.7%, while operating margin is just 11%.
05:42 MSFT Microsoft cuts Xbox price in Japan - WSJ (30.17 )

The Wall Street Journal reports Microsoft (MSFT) said Monday it is slashing Xbox 360 prices in Japan by about 13%, as the price war among videogame consoles heats up ahead of the key year-end shopping season. The Xbox 360 console will sell in Japan for 34,800 yen ($304) starting Nov. 1, down from 39,795 yen, Microsoft’s Japan unit said in a statement. A more basic version of the machine now selling for 29,800 yen will be priced at 27,800 yen.
05:40 HAR Harman takeover canceled, fight avoided - WSJ (86.40 )

The Wall Street Journal reports Kohlberg Kravis Roberts & Co. and Goldman Sachs (GS) terminated their $8 bln takeover for Harman International Industries (HAR), said people familiar with the matter, with the two sides agreeing to a far more modest investment that will spare litigation. Under the agreement, KKR and Goldman’s private-equity arm will buy $400 mln worth of Harman convertible debt securities, these people said. These securities will pay out 1.25% in interest annually, and will be convertible into Harman stock should its shares reach $104 each sometime over the next five years. KKR and Goldman won’t have to pay the $225 mln termination fee called for under the original deal, said the people familiar with the matter. People close to both sides of the Harman transaction said they didn’t want to spend tens of millions of dollars for attorneys’ fees. Nor were Harman officials keen on dragging the minutiae of their business into public view, said two people familiar with company’s thinking.
05:38 BSC Bear Stearns, Citic near a deal - WSJ (116.41 )

The Wall Street Journal reports Bear Stearns (BSC) is close to a deal with the Chinese investment bank Citic Securities Co. that would give each co a stake in the other and pave the way for business partnerships in both the U.S. and in Asia, say people familiar with the matter. Final details were being hammered out late yesterday, these people say, and the deal could still fall apart. But the pact under discussion involves both Bear Stearns and Citic investing about $1 bln in one another, the people said. The finalized deal could be announced as early as today, said these people. Shares in Citic Securities were suspended Monday pending a news announcement. Citic, these people added, will invest about $1 bln in Bear Stearns and receive securities that will convert over time into a roughly 6% equity stake in Bear. The Beijing-based firm will also have the right to buy a stake of up to 3.9% of Bear Stearns in the public market, for total eventual holdings of no more than 9.9% of its stock. On the other side, Bear Stearns’s $1 bln worth of Citic’s debt over time will amount to a 2% stake in the Chinese firm. Bear Stearns will also be given options to buy an additional 5% of the co, exercisable over the course of five years. Citic’s convertible securities have a maturity of 40 years, but Bear Stearns’s purchase of Citic’s debt will likely convert into stock over the course of five to seven years.
05:34 Morning News Summary

WSJ: Bear Stearns (BSC), Citic near deal… Harman (HAR) takeover canceled, fight avoided… Microsoft (MSFT) cuts Xbox price in Japan… Avon (AVP) makeover isn’t cosmetic. Reuters: ABN (ABN) has offers for Saudi Hollandi stake: Report. AP: Toyota (TM) sells 2.34 mln vehicles in Q3.
04:24 CHKP Check Point Sftwr beats by $0.03, beats on revs (25.98 )

Reports Q3 (Sep) earnings of $0.41 per share, excluding equity-based compensation expenses and acquisition related charges, $0.03 better than the Reuters Estimates consensus of $0.38; revenues rose 29.1% year/year to $184 mln vs the $178.8 mln consensus.
04:14 WIRES On The Wires -Update-

Euro Tech Holdings Company Ltd. (CLWT) announces that its subsidiary, Yixing PACT Environmental Technology, has recently been awarded contracts worth about $2.4 mln by a USA Aluminum co based in Qinhuangdao, China… LDK Solar (LDK) announces that it has signed a three-year contract to supply multicrystalline solar wafers to Canadian Solar (CSIQ).
04:11 ZBRA Zebra Tech beats by $0.05, beats on revs; guides Q4 EPS in-line, revs in-line (33.92 )

Reports Q3 (Sep) earnings of $0.43 per share, $0.05 better than the Reuters Estimates consensus of $0.38; revenues rose 16.5% year/year to $217.2 mln vs the $213.3 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.38-0.45 vs. $0.43 consensus; sees Q4 revs of $215-227 mln vs. $228.62 mln consensus.
04:07 JAKK JAKKS Pacific beats by $0.15, beats on revs (26.55 )

Reports Q3 (Sep) earnings of $1.45 per share, $0.15 better than the Reuters Estimates consensus of $1.30; revenues rose 7.6% year/year to $318.4 mln vs the $300.8 mln consensus. Co reiterates FY07 guidance of $800 mln in net sales and EPS of $2.39.
04:04 AUO AU Optronics beats by $0.03, beats on revs (20.40 )

Reports Q3 (Sep) earnings of $0.88 per share, $0.03 better than the Reuters Estimates consensus of $0.85; revenues rose 96.1% year/year to $4.2 bln vs the $4.09 bln consensus.
03:59 NJ Nidec announces 3 subsidiaries revise financial forecasts upward for six months ended Sept. 30, 2007 (17.16 )

Co announces that that Nidec Sankyo, one of its consolidated subsidiaries, has revised upward its consolidated financial forecast for the six months ended September 30, 2007 due to higher-than-projected sales of its stepping motors, optical pickup units and home appliance units. Co also announces that that Nidec Copal, another of its consolidated subsidiaries, has revised upward its consolidated financial forecasts for the six months ended September 30, 2007 to reflect continued briskness in the digital camera market, shipments and sales of the co’s camera shutters and metal casings. Finally, co announces its Japan Servo subsidiary has revised its forecasts upward due to higher sales of fan motors, home icemakers and amusement device components.
03:51 WMT Wal-Mart announces tender offer for full ownership of Seiyu, its Japanese subsidiary (44.98 )

Co announces it will launch a tender offer to acquire all of the issued and outstanding shares of its Japanese subsidiary, The Seiyu, Ltd. that it does not already own. The offer is being made with the endorsement of the Seiyu Board of Directors, which today passed a resolution of support. The tender offer price is 140 yen per common share. Wal-Mart currently owns 50.9% of Seiyu. The tender offer represents an additional investment by Wal-Mart of up to 100 bln yen (approx $862 mln).
03:49 OSIP Tarceva earns approval for lung cancer patients in Japan (36.68 )

Roche and co announce that Tarceva has been approved in Japan for the treatment of patients with nonresectable, recurrent and advanced non-small cell lung cancer which is aggravated following chemotherapy.
01:38 YUM YUM! Brands executive sells virtually entire stake - Barron’s Online (37.47 )

Barron’s Online reports the president and chief concept officer of Yum! Brands (YUM) Taco Bell unit sold virtually his entire direct stake in Yum Thursday for $1.8 mln. He received an average price of $37.73 for each of his 48,092 shares sold. The transaction, according to a Friday filing with the SEC, leaves Creed with a direct Yum stake of just four shares
01:35 VAR Varian Medical mentioned positively in Barron’s (41.09 )

Barron’s reports Varian Medical Systems (VAR) may have lost a few points of market share in the March quarter yet the slide didn’t continue into the April-to-June period, according to chief executive Tim Guertin. The more serious problem for Varian has been a general market wide slide in orders by hospitals. That’s the result of both rising interest rates and increased mergers in health-care services. “Most of the orders were delayed, not canceled outright,” says Guertin. Adds Sean Lavin, an analyst with Oppenheimer: “The drop in orders was temporary and will soon be made up.” This week, Varian will report its numbers for the final fiscal quarter. Sales and earnings probably won’t be much better than what analysts are expecting — a 10% sales gain for the year and a modest 8% rise in earnings, to about $1.79 a share. That leaves the stock trading at 23x this year’s profits, expensive compared with the industry’s 17x average. The key will be what Varian reports for Q4 sales. Any gain much above 10% could move shares higher. And if Guertin is right about big-ticket orders being deferred rather than canceled, sales may soon rise even faster. EPS could jump 14% in fiscal 2008, to $2.05, analyst Lavin maintains. Calling the shares “seriously undervalued,” he says they could bounce back to 52 over the next 12 months.
01:33 MMC Marsh & McLennan mentioned positively in Barron’s (24.30 )

Barron’s reports that if management at Marsh & McLennan (MMC) can boost operating margins in insurance brokerage from Q2’s dismal 7% to the high-teens or low-20% rate enjoyed by peers, Marsh & McLennan could earn $2.50 to $3 per share. Apply the current p/e multiple of 15x, and the stock could be worth 40 a share, says John Linehan, manager of the T. Rowe Price Value Fund, which holds 2.9 mln shares. The plan for turning the insurance unit around is multifaceted. Marsh hopes to stabilize its existing large-co insurance-brokerage operation by reducing employee turnover and controlling costs. It plans to expand its business with middle-market companies, where margins are juicier. And it’s developing new services to pitch to existing clients. “You have a great franchise that has lost its way for a variety of reasons, but there is a need for the services they are providing,” says Matthew Vetto, a portfolio manager at Douglas C. Lane & Associates, which owns about 940,000 shares. The Kroll and Mercer units will help to insulate Marsh & McLennan from the vagaries of insurance pricing. In addition, the co has pushed in the past year to boost its middle-market business, which caters to smaller companies, and its retail business. Both tend to suffer less in soft markets. Some Marsh & McLennan fans think revenue actually could rise because the value of goods being insured continues to climb, leading companies to buy more insurance, offsetting lower prices. Marsh & McLennan currently trades for about 1.1x expected ‘08 revenue of $23.70 per share. Its price-to-sales multiple has ranged from a low of 1.0 to a high of 3.7. If the co can do just a few things right, says Tom Mitchell of Miller Tabak, its multiple could rise to 2x expected revenue, and the stock could rally.
01:32 SHLD Sears Holdings mentioned positively in Barron’s (130.89 )

Barron’s reports some of Eddie Lampert’s restructuring efforts at Sears (SHLD) are likely to bear fruit. The co’s real estate has considerable value that is not reflected in the stock. Add up this real estate, valuable brands like Kenmore and Craftsman, and Sears’ huge appliance and home-remodeling business, and the co could have a liquidation value of more than $300 a share. Lampert faces a tough task trying to turn around the fortunes of legacy Sears and Kmart operations. Yet Deutsche Bank analyst William Dreher, for one, sees improved prospects for retail operations, and has a price target of $215 for the stock. He says Lampert has a golden opportunity to more than double Sears’ operating margins, merely by bringing them up to levels approaching those of the competition. Credit Suisse analyst Gary Balter also is upbeat on Sears, with a one-year price target of $190. He considers the stock attractive given the numerous opportunities for margin expansion, asset sales, share repurchases and working-capital improvements. As to the value of Sears’ real estate, Bill Ackman of Pershing Square reasoned that Sears Holdings is more a conglomerate than a pure retailer. He therefore deducted from its $20 bln EV the $2.2 bln value of its 70% holding in Sears Canada and $9.3 bln in noncore assets after working capital adjustments, valuing Sears’ U.S. retail real estate at just $8.5 billion of its total EV. The $8.5 bln EV he assigned to Sears’ U.S. retail real estate both on and off the mall worked out to just $33.05 per square foot, based on an estimated 257 mln square feet. The number pales beside the EVs per square foot of Sears’ various rivals.
01:12 WIRES On The Wires

NDS (NNDS) and the Industrial Technology Research Institute of Taiwan announce that they are partnering to demonstrate the secure live transmission of TV content over mobile WiMAX.
01:11 MTN Vail Resorts announces update on legal proceedings regarding The Canyons and Cheeca Lodge (61.46 )

Co announces that its request for a preliminary injunction to prevent the closing of the acquisition by Talisker Corporation of ASC Utah, the owner of The Canyons Ski Resort in Utah, was denied. Co announces that its total expenses related to The Canyons litigation efforts since August 1, 2007, was approx $2.0 mln. Vail Resorts also announces that its luxury hotel management co, RockResorts International, LLC, has reached a final settlement in the Cheeca Lodge litigation in the amount of $13.5 mln, inclusive of all damages, fees and expenses. RockResorts has received approx $12.4 mln, which represents its share of the final settlement, net of certain attorneys’ fees.
01:09 QRCP Quest Resources provides update on results for Q307 (8.05 )

Co provides an update on its operational results for Q307. Jerry Cash, Quest Chief Executive Officer stated, “We are continuing with our development drilling and re-completing of wells and connection of those wells through Quest Midstream. We expect that our net sales volume for the third quarter of 2007 will be approximately 4,400 MMcfe, a 32% increase compared to net sales volume of 3,343 MMcfe for the third quarter of 2006 and a 7% increase compared to net sales volume of 4,128 MMcfe for the second quarter of 2007.” Additionally, Quest reported that, based on the low natural gas prices on September 30, 2007, it would have a non-cash impairment loss of approx $90 mln for Q307.
00:57 HAL Halliburton beats by $0.02, beats on revs (38.85 )

Reports Q3 (Sep) earnings of $0.66 per share, excluding a tax benefit and one-time charge, $0.02 better than the Reuters Estimates consensus of $0.64; revenues rose 15.8% year/year to $3.93 bln vs the $3.86 bln consensus.
00:43 BSX ARRIVE Registry analysis demonstrates continued safety and efficacy of TAXUS stent (14.42 )

Co announces results from an analysis of nearly 7,000 patients from its TAXUS ARRIVE 1 and 2 registries, designed to assess the performance of the TAXUS Express2 Paclitaxel-Eluting Coronary Stent System in “real-world” practice. The pooled ARRIVE data showed continued low incidences of adverse events and repeat revascularization through two years in complex patients treated with the TAXUS Express2 Stent. Analysis of the data was presented at the Cardiovascular Research Foundation’s nineteenth annual Transcatheter Cardiovascular Therapeutics scientific symposium.
00:41 OREX Orexigen Therapeutics reports detailed results of Phase IIb of Empatic to treat obesity (16.87 )

Co announces detailed results at the 24 week primary endpoint of its Phase IIb trial of Empatic, one of its two obesity drug candidates. The trial demonstrated, across each of the six Empatic treatment arms, statistically significant weight loss against placebo. Top-line findings were presented earlier this year. The detailed results presented were disseminated in a poster presentation at The Obesity Society Annual Scientific Meeting. Results of this trial also indicated that Empatic was safe and generally well tolerated.