Data Feed

08:32 MGI MoneyGram profiled in Business Week (15.12 )

Business Week reports the huge slide in the stock has generated buzz that MoneyGram may be looking for a buyer. It has hired JPMorgan to review its payment systems business, whose third-quarter income tumbled 12%. John Bendall, CEO of Hermitage Capital, which owns shares, says MoneyGram could either spin off its payment systems unit or sell the whole co, which he figures is worth 30 a share. Zaineb Bokhari of Standard & Poor’s rates MoneyGram a buy. Its core business is “solid,” he says, and its stock is “attractive.”
08:32 ICE IntercontinentalExchange says ICE Futures Europe Sets Volume Record

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08:32 GNA Gerdau AmeriSteel prices offering of 110 mln its common shares at $12.25/share (12.92 )
08:31 CVX prelim $1.94 vs $2.05 Reuters consensus; revs $55.17 bln
08:31 RGN Regenerex Biopharam Receives First Ophthalmic Wound-Healing Patent in China

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08:31 COLY Coley Pharma: PFE partnership remains sound; pipeline diversification continues – Susquehanna (3.23 ) -Update-
08:30 Equity futures spike to pre-mkt highs following strong employment data… SPX +7, Dow +52
08:30 CLDA Clinical Data profiled in Business Week (27.81 )

Business Week reports shares have soared because it developed a possible blockbuster antidepressant along with a genetic test to predict its effectiveness in patients. But investors are also betting on Randal Kirk, Clinical’s billionaire chairman, who controls 40% of the stock. He founded and in 1996 became chairman of New River Pharmaceuticals, acquired in 2007 by Shire. In 1983, Kirk co-founded General Injectables & Vaccines, bought by Henry Schein in 1998. Pequot Capital Mgmt owns 3.5% of Clinical Data. “Some expect Kirk will end up selling Clinical,” says Chystyna Bedrij of Griffin Securities, who rates it a buy, with a target of 40. Its chief drug is Vilazodone, an antidepressant that she says showed positive data in initial phase III trials.
08:30 ECONX Average Workweek 33.8 vs 33.8 consensus -Update-
08:30 ECONX Hourly Earnings m/m +0.2% vs +0.3% consensus
08:30 ECONX Unemployment Rate 4.7% vs 4.7% consensus
08:30 ECONX Nonfarm Payrolls 166K vs 85K consensus, prior revised to 96K from 110K
08:29 IGT Intl Game Tech: 4Q07 results; expects to break out of EPS range in 2H08 as demand accelerates – Nollenberger (42.75 )

Nollenberger notes IGT reported 4Q07 fully diluted EPS of $0.38, ahead of their $0.35 est but in line with the Street consensus. Top-line rev of $662.9 mln beat firm’s est by almost $15 mln but were roughly $31 mln below consensus. As firm enters this period of expected growth, the co’s higher profitability levels and lower share base should allow for higher flow-through to the bottom line. They anticipate that the bar will be raised for the shares against historic peak multiples achieved during previous high-demand cycles.
08:28 RMKR Rainmaker Sys: Hearing downgraded to Buy from Strong Buy at Needham (8.52 )
08:28 T AT&T profiled in Business Week (40.46 )

Business Week reports the co bolstered its stake in the spicy wireless mkt when Apple picked it as the exclusive U.S. carrier for its iPhone. The iPhone “will enable AT&T to widen its share advantage over principal rival Verizon,” says Justin Hellman of Value Line, who thinks AT&T is a timely buy. “We like this high-quality stock for the long haul, too, and believe it offers above-average total return potential to 2010-12.” Greg Miller of Deutsche Bank, which owns shares and has done business with AT&T, rates the stock a buy and upped his target price from 45 to 46. With five straight quarters of rising revenue, AT&T shows “it can generate earnings growth beyond mere cost cutting and synergy,” says Miller.
08:27 NI NiSource downgraded to Hold from Buy at KeyBanc (19.96 ) -Update-
08:26 CACS Carrier Access receives bids for takeover – Light Reading (2.68 )

Light Reading reports investment sources watching the co say the co’s founder and former CEO, Roger Koenig, has confirmed that Carrier Access has been showered with multiple offers for the co. The offers are characterized by our sources as being “in the $5 to $6 range,” which is well below what the co could have fetched earlier. Or before that. According to one investor who claims to have talked to Koenig in the past month: “I asked him twice about the offers being made and he twice he confirmed that, ‘Yes, we have offers as a part of the strategic alternatives review process.’ He would not elaborate as to the structure of these offers. He also said that ‘more interested parties have emerged now when the stock price has come down.’ “
08:26 IN Intermec downgraded to Market Perform from Outperform at Morgan Keegan (23.72 )
08:25 ERTS Electronic Arts: Drive strong Q2; tgt raised to $70 – Nollenberger (58.74 )

Nollenberger says driven by sales of Madden, FIFA, NCAA Football, Tiger Woods, and MySims, ERTS delivered a very strong quarter. They note ERTS reported fiscal 2Q non-GAAP EPS of $0.27 on revs of $936 mln, ahead of their ests of EPS of $0.18 on $900 mln. FIFA in particular was very strong this year, selling 2.9 mln units, with growth of 18%. ERTS scored with MySims, which sold over one mln units and propelled ERTS to be the No. 1 third-party publisher on the Wii so far this year. Firm raises their tgt to $70 from $64.
08:21 ADTN ADTRAN: Embarq results highlight broadband challenges, negative for ADTN – Morgan Keegan (22.56 ) -Update-

Morgan Keegan notes that EQ reported only 60k broadband net additions vs their est of 89k. Firm thinks that DSL demand remains weak from EQ, and cuts their Q4 DSL net addition est to 55k from 87k. EQ typically provides over 10% of ADTN’s sales, and firm says the results highlight the risks for ADTN’s Q4 results. (Firm still thinks however that ADTN may be poised for a new deal with EQ to support access upgrades worth $20-$50 mln in CY08.
08:20 BONDX Bond Watch: Still Better Bid

The market is seeing a little positive follow-through this morning as the push into less-risky assets remains a driving force on the woeful state of the financial sector & key jobs data that is feared to be on the weak side. The 2-10-yr yield spread poked out to 60.7 as curve trade leans steeper on the outsized interest in the shorter end after yesterday’s equity drubbing. Bond prices in the EuroZone & Japan are bid on risk aversion. Treasuries are parked just off Oct price highs as trade has worked itself up into a coil with today’s payrolls report about to hit. It will take a big miss to support prices while an even bigger miss is needed to get prices over the Oct hump. An upside surprise will pull the bottom out of the market. Hourly earnings will be eyed for inflation pressures & the unemployment rate for labor looseness. Revisions could hold the key. Beyond the data, the market will likely be supported by the underlying economic uncertainty as tapebombs are appearing around every corner. And its the weekend, so bonds should have that going for them. Dollar shorts remained on overnight as most of the majors remained rangebound, with the exception of the pound & Canadian loonie which continue to outperform. Currency trade is all lined up to take the buck down another notch, but a good jobs report may send those shorts running for cover. Spot gold shot up to 794.30 (+7.00) while crude oil is up at 94.40 (+0.91). Other than payrolls (8:30) the economic calendar has factory orders (10). The euro is at 1.4487 & the yen is at 114.7050 while the 10-yr is +01/32 yielding 4.342%. For more bond & economic commentary click here.
08:20 SCANX Early pre-market gappers

Gapping up: CNO +10.4%, BRCD +5.0%, ERTS +3.5%, NYX +2.4%, F +2.4%, STX +1.5%… Gapping down: LVS -13.4%, TIE -9.6%, GNA -6.0%, WYNN -5.9%, VRTX -5.2%, BCS -4.9%, SVR -4.3%, UBS -2.3%, EBAY -2.1%, AAUK -2.1%, MMR -1.2%.
08:20 UNT Unit Corp tgt cut to $60 at Calyon (49.08 )

Calyon cuts their tgt on UNT to $60 from $65 as average day rate lipped $240/day to $18,470/day on a weakening domestic land drilling market. The co guided to a further $200-$300/day drop in 4Q07. They expect day rates to continue easing in the first part of 2008. Firm expects newbuilds to expand the total rig supply in the US, which will dampen margins in the near term.
08:20 SWHC Smith & Wesson profiled in Barron’s Online (10.86 )

Barron’s Online reports the magnitute of the co’s earnings shortfalls is very disturbing becuse mgmt severely misread its own business. The team has been very aggressive in touting its own financial success by issuing earnings guidance, and often increasing earnings forecasts. This type of stock mgmt is not done by many seasoned cos anymore, only by smaller cos looking to attract attention by portraying their stock as a growth story. Well, it backfired on Smith & Wesson, which now has a major credibility gap with investors that will not be easily overcome. The magnitude of the anticipated earnings warning and stock selloff merits a Securities and Exchange Commission review to make sure the terms of the stock plans were not changed in advance of the sales.
08:18 SUP Superior Ind earnings color (19.83 ) -Update-

Reuters Estimates is telling us that an actual of ($0.02) is comparable to their consensus of $0.07. See 8:06 comment for full report.
08:17 BEBE bebe stores: Slowly regaining its groove; remain buyers – Brean Murray (13.07 )

Brean Murray is reiteratng their Buy rating, $18 tgt and ests after BEBE announced slightly lower-than-expected 1QFY08 results and provided in-line 2QFY08 guidance. Firm believes BEBE is rebounding from a number of fashion miscues and a mix shift to lowercost items, which hurt results in the Sept quarter. While some of these issues remain in the holiday period, they believe the co has a number of other potential levers to drive results, including a more normalized marketing and catalog cadence and a number of key fashion trends. Firm reminds investors that last year was a series of product and promotional miscues; they do not believe the co will err at this level again.

08:17 BEBE bebe stores: Slowly regaining its groove; remain buyers – Brean Murray (13.07 )

Brean Murray is reiteratng their Buy rating, $18 tgt and ests after BEBE announced slightly lower-than-expected 1QFY08 results and provided in-line 2QFY08 guidance. Firm believes BEBE is rebounding from a number of fashion miscues and a mix shift to lowercost items, which hurt results in the Sept quarter. While some of these issues remain in the holiday period, they believe the co has a number of other potential levers to drive results, including a more normalized marketing and catalog cadence and a number of key fashion trends. Firm reminds investors that last year was a series of product and promotional miscues; they do not believe the co will err at this level again.
08:16 GES Guess downgraded to Average at Caris- tgt $53 (46.72 )

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08:16 EDS EDS beats by $0.01, reports revs in-line; guides FY07 EPS in-line, revs in-line (20.98 )

Reports Q3 (Sep) earnings of $0.42 per share, $0.01 better than the Reuters Estimates consensus of $0.41; revenues rose 6.4% year/year to $5.63 bln vs the $5.66 bln consensus. Co issues in-line guidance for FY07, sees EPS of $1.55-1.60, excluding non-recurring items, vs. $1.57 consensus; sees FY07 revs of $22.0-22.5 bln vs. $22.26 bln consensus.
08:16 GBTB GB&T Bancshares to be acquired by SunTrust in transaction valued at $153.70 mln (8.80 )

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08:16 WDC Western Digital upgraded to Buy at Caris- tgt cut raised to $35 from $27 (26.02 )

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08:16 SKM SK Telecom may boost ties with Sprint for U.S. growth – Bloomberg (30.17 )

Bloomberg reports the co may boost ties with Sprint Nextel (S) to revive earnings after forecasting U.S. losses will almost double this year. “We are now working with Sprint for various collaboration options,” CEO Kim Shin Bae said of the third-largest U.S. wireless carrier in an interview in Seoul. “There’s a lot of options to launch the business in the U.S.” The affiliate of SK Group has predicted a loss of $360 mln in the U.S. this year after failing to attract enough subscribers. SK Telecom has no plans to acquire Earthlink (ELNK), Kim said. Earthlink CEO Rolla Huff said last week the co wouldn’t rule out being bought. SK Telecom doesn’t have any plans to buy Sprint, Kim said, reiterating comments from July. In China, SK Telecom doesn’t plan to raise its 6.6% stake in China Unicom (CHU) after investing $1 bln in the country’s second-largest mobile-phone operator, said Kim. SK plans to cooperate with Unicom on developing handsets, networks and new services for China.
08:15 ECONX Economic Perspective: October Jobs Report Preview — data due out in approximately 15 minutes

October Employment data is due out at 8:30 am E.T. today. Briefing.com stands with the consensus looking for an 80K rise in October Nonfarm Payrolls as the unemployment rate holds at 4.7%. Nonfarm payrolls rose 110K in September after averaging just 84K during the prior three months. The slower payroll growth is the result of 15 consecutive months of decline in manufacturing, recent declines in construction and the most recent declines in financial activity. Payroll growth doesn’t have any accurate real time indicators. Unemployment claims only reflect layoffs as the pace of hiring is key to payroll growth. ADP handles payroll distribution for many companies and has an estimate for 106K new October employees in the private sector. Recent government payroll growth lifts this estimate to about 130K for total payroll growth, but forecast misses can ring high here as well. The ISM employment indices don’t provide an accurate read either. The secondary indicators of unemployment, earnings and the length of the workweek, aren’t expected to provide much surprise. The unemployment rate is rising slowly and is expected to hold at the 4.7% rate reached in September. A higher rate would fan market fears of a weaker economy as it would also help squelch remaining inflation caution at the Fed. Hourly earnings of 0.3% would leave the annual growth at the 4.1% seen in September but below the 4.3% peak of December. The workweek is expected to hold at 33.8 hours — the midpoint of a tiny 0.3 hour range held for over three years. The labor market conditions are seen as a key indicator for the trends in consumer spending. If payroll growth fades and drives the unemployment rate higher, the odds for a recession quickly rise given the expectation for weaker income growth and slower spending. The swing can be quick, as seen with the revised 4K decline first reported for August. There are a number of other risks weighing against the economy currently — extremely high oil prices of over $93 per barrel (also a drag on consumer spending), a fragile financial market given the reckless mortgage lending of the last few years, and, of course, the recession in the housing sector itself. The equity markets will respond more positively the stronger the labor market forces are against the other drags on the economy.
08:15 TE TECO Energy earnings color (16.48 ) -Update-

Reuters Estimates is telling us that an actual of $0.38, ex items is comparable to their consensus of $0.34. See 07:40 comment for the full report.
08:15 TSO Tesoro Corp. downgraded to Above Average at Caris- tgt $60 (57.29 )

Caris downgrades TSO to Above Average from Buy with a $60 tgt following earnings and saying they continue to view the longer term fundamentals for the domestic refining industry positively, however, continuing upward pressure on crude oil prices, refining margins remain under pressure.
08:15 FISV Fiserv agrees to sell health businesses to UnitedHealthcare (54.39 )

Co announces it has signed a definitive agreement to sell substantially all of its Health businesses to UnitedHealthcare, a business of UnitedHealth Group (UNH), for $775 mln in cash. FISV expects to receive approximately $475 mln of net transaction proceeds, and depending upon reinvestment, may experience slight dilution to its 2008 earnings per share in a range of 1% to 3%. The co also expects the transaction to be accretive to its 2008 revenue, earnings and margin growth rates.
08:13 SYMC Symantec CEO sees more acquisitions ahead – Infoworld.com (18.49 )

Infoworld.com reports that the future holds more acquisitions for SYMC as it looks to strengthen key business areas and keep pace with evolving online security threats. While dismissing as “speculation” recent press reports that SYMC is close to buying San Francisco data-loss prevention software co Vontu, CEO John Thompson said SYMC is interested in expanding in that technology area. “If I were to think about broad categories of technology where we have an interest they might include three or four important areas: data loss prevention, transaction-based security, server management, and then complementary services across those three software domains,” he said at a Tokyo news conference held alongside the co’s Symantec Vision event. “And so a company like Vontu that has achieved leadership in the category of data-loss prevention certainly would be an interesting target,” he said.
08:12 BONDX Economic Calendar

Payrolls report & all its detail at 8:30 followed by factory orders at 10.
08:11 IP Intl Paper reports EPS in-line, beats on revs (36.07 )

Reports Q3 (Sep) earnings of $0.57 per share, excluding non-recurring items, in-line with the Reuters Estimates consensus of $0.57; revenues rose 2.1% year/year to $5.54 bln vs the $5.36 bln consensus.
08:09 EPE Enterprise GP Holdings upgraded to Outperform from Market Perform at Morgan Keegan (35.85 )

08:09 WIRES On The Wires

G. Willi-Food (WILC) announces that it had signed a binding letter of intent to form a new joint co with the owners of Shamir Salads, an Israeli manufacturer and distributor of pre-packaged chilled kosher Mediterranean dips and spreads in Israel and abroad… Metavante Technologies announces that it has completed its spin-off from Marshall & Ilsley (MI). Shares of common stock for Metavante Technologies will begin trading today on the New York Stock Exchange under the symbol “(MV).”.. Raytheon (RTN) announces it won the F-15E radar modernization program to equip 224 aircraft. The development program is expected to start in 2008.
08:09 TWX Time Warner: NY Post article discusses cable spinoff; says spinoff will take place in ‘08 (18.00 )

NY Post reports look for the co to spin off the remainder of its stake in its Time Warner Cable (TWC) unit next year, co insiders said yesterday. While a transaction – long anticipated – is not imminent, one source familiar with the situation confirmed a cable spin-off is “likely” in 2008. (Briefing.com note: CNBC reported during the day yesterday that TWX is prepping for a cable spinoff)
08:08 HWCC Houston Wire & Cable misses by $0.02, beats on revs; guides FY07 EPS below consensus (16.66 )

Reports Q3 (Sep) earnings of $0.41 per share, $0.02 worse than the Reuters Estimates consensus of $0.43; revenues rose 10.0% year/year to $98.9 mln vs the $97.2 mln consensus. Co issues downside guidance for FY07, sees EPS of $1.45-1.52 vs. $1.59 consensus. Co repurchased 7% of its shares outstanding in Q3 at a cost of $27.9 mln. Co says “With respect to our Repair and Replacement sector through the balance of 2007, we anticipate a continued sales contraction because of the moderation and near-term uncertainty within the US economy.”
08:08 AMGN Amgen: Risks to D-Mab sales surface in our Osteo Call with Practitioners – FBR (57.24 )

Friedman Billings notes yesterday they hosted a conf call with two community doctors who treat a high volume of osteoporosis patients and also serve on P&T committees. They notes doctors agreed that denosumab and Reclast will have a place in the treatment of osteoporosis, but likely only in second-line patients. These doctors also believe that the current orals are adequate, and payors would push back on giving an injected drug to patients that had not first received an oral bisphosphonate. This would not be the case if denosumab’s fracture data are far superior to Reclast’s, which firm sees as unlikely. If these drugs are relegated to second-line, Street estimates for denosumab (around $3B) appear overly aggressive.
08:08 EIX Edison beats by $0.11, misses on revs; guides FY07 EPS in-line (56.43 )

Reports Q3 (Sep) earnings of $1.41 per share, excluding non-recurring items, $0.11 better than the Reuters Estimates consensus of $1.30; revenues rose 3.7% year/year to $3.94 bln vs the $4.08 bln consensus. Co issues in-line guidance for FY07, sees EPS of high end of previous guidance of $3.24-3.59 vs. $3.48 consensus.
08:07 ERIC LM Ericsson upgraded to Overweight from Market Weight at Thomas Weisel (28.88 )

08:07 PDX Pediatrix Medical correction: reports Q3 EPS in-line, revs above consensus (64.65 )

Co reports Q3 EPS of $0.81, ex items, vs $0.81 Reuters Estimates consensus; revs rose 9.8% yr/yr to $241.1 mln vs $236.9 mln consensus. (Briefing.com note: Earlier we reported that the company has missed, this was incorrect as the reported actual included $0.02 charge that we had not backed out. We have removed the original comment.)
08:06 ROLL RBC Bearings misses by $0.02, misses on revs; guides Q3 revs below consensus

Reports Q2 (Sep) earnings of $0.40 per share, $0.02 worse than the Reuters Estimates consensus of $0.42; revenues rose 6.8% year/year to $78.2 mln vs the $80.1 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $80-82 mln vs. $82.45 mln consensus.
08:06 SUP Superior Ind reports Q3 (Sep) results, beats on revs (19.83 )

Reports Q3 (Sep) loss of $0.02 per share, may include gains, chargs, may not be comparable to the Reuters Estimates consensus of $0.07; revenues rose 30.6% year/year to $227.6 mln vs the $201 mln consensus.
08:06 PCG PG&E downgraded to Market Perform from Outperform at BMO Capital (46.25 )

08:05 BAM Brookfield Asset Mngmt reports Q3 EPS of $0.13 vs $0.20 Reuters consensus; revs $2.22 bln vs $1.91 bln single analyst est (39.75 )

08:05 CNP CenterPoint reports EPS in-line, misses on revs; guides FY07 EPS in-line (16.67 )

Reports Q3 (Sep) earnings of $0.27 per share, in-line with the Reuters Estimates consensus of $0.27; revenues fell 2.7% year/year to $1.88 bln vs the $2.13 bln consensus. Co issues in-line guidance for FY07, sees EPS of at high end of previous range of $1.02-1.12 vs. $1.07 consensus.
08:04 PPCO Penwest Pharma reports Q3 revenues of $820K compared to $720K in prior year; net loss was $0.40 compared to $0.38

08:04 BGFV Big 5 Sports: Current sales trends dampen margin improvement – FBR (16.49 ) -Update-

Friedman Billings notes that BGFV reported 3Q operating results last night after the close that were better than expected, with EPS coming in well ahead of expectations. However, the near-term outlook remains concerning, possibly offsetting some of the positive developments. Unfortunately, the timing of the BGFV margin enhancement story could not be worse, as this traditionally very consistent business has been infiltrated by a horrible housing downturn, poor weather, and an otherwise unfavorable macro outlook, which has equated to SSS pressure that may last for several quarters. Although the company should be able to reap ongoing benefits from its new DC for several years to come, the 3Q signifies the inflection point they have been waiting several quarters for, only to be blunted by sluggish sales. Firm cuts their tgt to $20 from $22 .
08:04 HWCC sees FY07 $1.45-1.52 vs $1.59 Reuters consensus

08:03 ANX ADVENTRX Pharma says will discontinue enrolling patients in its Phase 3 clinical trial of CoFactor for the first-line treatment of metastatic colorectal cancer (0.65 )

Co announces that it will discontinue enrolling patients in its Phase 3 clinical trial of CoFactor for the first-line treatment of metastatic colorectal cancer. This decision follows advice ADVENTRX received from the Data Safety Monitoring Board, and comprehensive analysis of the recently completed Phase 2b clinical trial of CoFactor for the treatment of metastatic colorectal cancer. While the DSMB did not identify safety concerns with CoFactor, it recommended closure of the Phase 3 study, citing a slow accrual rate due, in part, to current and projected treatment preferences for colorectal cancer. Further analysis of the Phase 2b study, in which 5-FU was administered by infusion, has uncovered no significant differences between the study arms with regard to either efficacy or safety. Overall survival data from the Phase 2b study and data from the Phase 3 study are anticipated in the second quarter of 2008.
08:03 EIX sees FY07 at high end of previous range $3.24-3.59 vs $3.48 Reuters consensus

08:03 HWCC prelim $0.41 vs $0.43 Reuters consensus; revs $98.9 mln vs $97.2 mln Reuters consensus

08:03 ROLL sees Q3 revs $80-82 mln vs $82.45 mln Reuters consensus

08:02 CVTX CV Therapeutics announces that data from completed Phase 1 studies of novel Adenosine A2b antagonist CVT-6883 show safety, tolerability and potential utility in chronic pulmonary and inflammatory diseases (9.81 )

Co announces that data from a randomized, single-blind, placebo-controlled, multiple ascending dose Phase 1 study of CVT-6883, a potentially first in class adenosine A2B antagonist, show that a range of doses were safe and well tolerated in 30 healthy volunteers. Preclinical data support the potential utility of CVT-6883 in several disease areas where there is significant unmet medical need, including chronic pulmonary diseases such as asthma, chronic obstructive pulmonary disease and pulmonary fibrosis. “The favorable safety and tolerability properties seen in both of our Phase 1 studies, combined with the potential utility of CVT-6883 for pulmonary and inflammatory diseases observed in preclinical models, support further clinical development. We are actively exploring partnership opportunities to maximize the value of the CVT-6883 program as we continue to focus on our growing Ranexa business and building shareholder value,” said Louis Lange, chairman and CEO. Preclinical data with CVT-6883 showed that CVT-6883 significantly reduced elevated markers of inflammation, fibrosis and pulmonary injury in several preclinical models. Mice predisposed to elevated adenosine levels developed pulmonary inflammation, fibrosis and enlargement of air sacs in the lungs called alveolar spaces. Treatment with CVT-6883 reduced these conditions and also significantly reduced elevations in proinflammatory cytokines and chemokines. In a separate in vivo model, CVT-6883 inhibited pulmonary inflammation and fibrosis induced by bleomycin.
08:02 EIX prelim $1.41 vs $1.30 Reuters consensus; revs $3.94 bln vs $4.08 bln Reuters consensus

08:02 IP prelim $0.57 vs $0.57 Reuters consensus; revs $5.54 bln vs $5.36 bln Reuters consensus

08:02 ROLL prelim $0.40 vs $0.42 Reuters consensus, $0.41 First Call; revs $78.2 mln vs $80.05 mln Reuters consensus

08:02 EDS sees FY07 $1.55-1.60 vs $1.57 Reuters consensus; sees revs $22.0-22.5 mln vs $22.26 bln Reuters consensus

08:02 CNP sees FY07 $1.02-1.12 vs $1.07 Reuters consensus

08:02 WAG Walgreen reports October same store sales +6.9% vs +6.0 street expectation (39.03 )

08:01 CNP prelim $0.27 vs $0.27 Reuters consensus, $0.25 First Call; revs $1.88 bln vs $2.13 bln Reuters consensus

08:01 GNSS Genesis Microchip tgt cut to $8.50 from $11 at Roth Capital (7.42 )

Roth Capital cuts their tgt on GNSS to $8.50 from $11 following earnings. The firm says they had upgraded GNSS in July to Hold from Sell under the assumption that the worst may be behind the co, however, the firm says they would maintain a “wait and see” approach before recommending GNSS as a sound investment.
08:01 PBY Pep Boys enters into $166.2 mln sale lease back transaction (15.23 )

Co announces that it has agreed to sell, subject to the satisfaction of certain closing conditions, 34 properties for an aggregate purchase price of $166.2 mln.
08:01 EDS prelim $0.42 vs $0.41 Reuters consensus; revs $5.63 bln vs $5.66 bln Reuters consensus

08:01 S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +3.0.

Futures point to an opening very close to the unchanged mark. Investors are currently in a wait-and-see mode ahead of the market moving October employment report, which is slated to be released at 8:30 ET.
08:00 SUP prelim ($0.02) may not be comparable to $0.07 Reuters consensus; revs $227.6 mln vs $200.95 mln Reuters consensus

08:00 PLD ProLogis: Freidman Billings raises ests and tgt to $78 on strong execution and pipeling (68.33 )

Friedman Billings raises their tgt on PLD to $78 from $71 and raises their 2007 and 2008 per share ests to $4.48 from $4.18 and to $4.90 from $4.58, respectively, after another excellent quarter. Core growth remained strong, with robust 5.9% same-store NOI growth, driven by a 270-bp increase in occupancy and strong rent spreads of 9.6%. As always with ProLogis, development is a focus point, and their 2008 ests reflect the benefits of $4B of global starts this year.
07:58 CUTR Cutera downgraded to Sector Perform from Outperform at RBC- tgt cut to $30 from $35 (24.21 )

07:56 CCJ Cameco tgt raised to $54 at FBR (45.22 )

Friedman Billings says in view of an 8% pullback in CCJ shares yesterday, they raise their tgt to $54 from $50. While several items do tame sentiment for Cameco such as a) Cigar Lake delayed indefinitely b) softer production guidance for the next three years (3% to 5%) c) news of the Russians wanting to renegotiate the price for the seven million lbs supply contract, firm nonetheless expects the following items to more than offset the aforementioned negative ones and drive the shares higher from current levels. Per 3Q07 results released Wed morning, firm revises their 2007 earnings ests down by 10% and 2008 ests by about 3%.
07:55 BCS Barclays PLC: Additional color on BCS sell-off in Europe (47.23 ) -Update-

As mentioned at 7:46, BCS shares fell overseas on speculation it asked BOE for funds. Reuters reports that The Bank of England said it had “no comment” on the market talk and Barclays also declined comment. By 5:50 a.m. E.D.T., shares in Barclays were down 7% at 533.5 pence. The FTSEurofirst 300 index lost 0.9%, led by losses in financials, extending sharp falls seen in the previous session on credit crunch worries. Just three weeks ago, Barclays said profit at its Barclays Capital investment bank in September were substantially ahead of the previous two months, when a credit crunch hurt business. “Despite its inexpensive valuation we are reinstating Barclays with a neutral due to uncertainty regarding the revenue outlook for BarCap,” Goldman Sachs said in a note on Friday.
07:54 GPCB GPC Biotech downgraded to Underperform from Market Perform at Piper Jaffray (4.45 )

07:53 GBX Greenbrier Comp downgraded to Market Perform from Outperform at Wachovia (24.69 )

07:52 EBAY eBay: Downgrade details (35.00 ) -Update-

As mentioned at 7:20 Bear Stearns downgraded EBAY to Peer Perform from Outperform saying as 2007 comes closer to an end, investors are starting to focus even more on 2008 guidance. The firm thinks certain issues still remain on the platform as the co enters 2008, and believe that eBay will ultimately seek to augment its overall health, particularly for the long term. While eBay has implemented (or begun to implement) many positive changes, the firm says that there will still be more investment needed in 2008 and that eBay would sacrifice near term financials to maximize the future for the co.
07:51 S Sprint cuts could delay 4G rollout – FT (16.58 )

FT reports the co has slowed its capital spending in an effort to boost its free cash flow — a move that could delay the planned commercial deployment of a 4G wireless broadband network based on WiMax technology. The capital outlay cutbacks could also hit Sprint Nextel’s telecommunications equipment suppliers.
07:51 HYTM Hythiam: Releases compelling placebo-controlled study data – Broadpoint Capital (6.88 ) -Update-

Broadpoint Capital notes HYTM released top-line data from an 88-patient randomized, placebo-controlled study that demonstrate a statistically significant reduction in cravings. While longer-term use/abstinence study data are not likely for several months, they view these initial study results as very compelling, given that nothing appears to work as effectively or as quickly at reducing cravings. Firm notes this study, while short term in nature, appears to demonstrate that Prometa holds some clinical benefit for struggling addicts, and therefore, firm expects the results to positively impact the co’s business development activities heading into 2008.
07:49 MRO Marathon Oil upgraded to Outperform from Neutral at Credit Suisse (57.67 )

07:48 LVS Las Vegas Sands: Color on quarter (125.30 )

Morgan Stanley notes LVS reported 3Q07 adjusted EBITDA of $128 mln, below their forecast of $185 mln. The co missed their expectations at all properties, although they note the one bright spot was that the Venetian Macau would have been inline with their est had it not been for weak hold (though firm believes the property gained more rev at the expense of the Sands). It would be unfair for them to be critical of LVS’s weak quarter in Macau as they have said for some time that the Venetian will take time to ramp, and the first 34 days are likely not indicative of the long-term potential of the property… Lehman says with LVS’ 3Q07 behind it and disappointing, the market will likely recalibrate near term expectations. That said, LVS is undertaking a large endeavor in new territory. At some point, the co will start operating on a more normalized basis and will be able to reap significant efficiencies. Therefore, firm would pay close attention to what market valuations imply for LVS’ future. They currently believe $100 is a fair value, but once the learning curve issues begin to be resolved, they would likely be able to consider a higher valuation… Deutsche notes LVS 3Q07 results missed high expectations, due to 1) a lower hold percentage at all three properties, 2) early inefficiencies at Venetian Macao , and 3) lower mass market volume at Sands Macau. However, we are encouraged by strong volumes at all three properties and in our view it is too early to judge Venetian Macao, which is already ramping up in October.
07:48 WATG Wonder Auto Tech initiated with a Buy at Brean Murray- tgt $13 (9.16 )

Brean Murray inititaes WATG with a Buy and a $13 tgt saying they believe Wonder Auto provides investors with an opportunity to participate in the fast-growing Chinese auto market through a high-quality, high-growth co with a marquee customer base, solid management team, and long-term growth opportunities. The firm says mgmt is the most disciplined within the group of China-based U.S.-listed auto parts companies.
07:46 HMSY HMS Holdings tgt upped to $32 from $29 at Jefferies following “another strong performance in Q3″ (27.35 )

07:46 TSTY Tasty Baking beats by $0.05, misses on revs (9.91 )

Reports Q3 (Sep) earnings of $0.03 per share, $0.05 better than the single estimate of ($0.02); revenues rose 2.9% year/year to $42.5 mln vs the $43.3 mln single estimate.
07:46 BCS Barclays falls on speculation it asked BOE for funds – Bloomberg (47.23 )

Bloomberg reports the co fell the most in almost three months in London trading on speculation that it approached the Bank of England for emergency funding.
07:46 PRICE Filings, Offerings, Pricings and IPOs

Filings: Data Domain (DDUP) files for an 8.5 mln share common stock offering; 4 mln being offered by the co and 4.5 mln being offered by selling shareholders… Danaos (DAC) files for a $1 bln mixed shelf offering… Silicon Gaming (SGIC) files for a $100 mln common stock shelf offering… Offerings: Boardwalk Pipeline Partners (BWP) announces a 6 mln share common unit offering… Pricings: Danaher (DHR 82.47) prices a 6 mln share common stock offering at $82.25/share… Arena Pharm (ARNA 9.91) prices a 11 mln share common stock offering at $9.91/share… Syniverse Holdings (SVR 16.09) prices a 20 mln share common stock offering at $15.50/share… McMoRan Expl (MMR 12.55) prices a 16.25 mln share common stock offering at $12.40/share… Gerdau AmeriSteel (GNA 12.92) prices a 36.9 mln share common stock offering at $12.25/share… IPOs: Neutral Tandem (TNDM), a provider of tandem interconnection services principally to competitive carriers (including wireless, wireline, cable telephony and Voice over Internet Protocol, or VoIP, companies), prices its 6.6 mln share IPO at $14/share, above the $11-$13 forecast range.
07:45 ABT Abbott Labs: Good report expected, but Abbott stent may need more – Chicagotribune.com (54.12 )

Chicagotribune.com reports that ABT is likely to show regulators that its new heart stent can open clogged arteries better than devices already on the mkt, but doctors and investors might not be impressed. Xience will not dominate the $2 bln U.S. stent market unless ABT can prove it is safe for patients, doctors say. Fifteen of 19 analysts surveyed by Bloomberg rate ABT a “buy,” betting Xience will get a positive review at a FDA meeting Nov 29, though some investors say the lack of safety evidence beyond one year of use could limit the device’s popularity even if regulators recommend approval. “Xience continues to show strong efficacy, but not a clean safety profile,” Matthew Dodds, a Citigroup analyst with a “sell” rating on ABT, wrote in a note to clients. Five cases of blood clots among Xience patients and the lack of long-term data “are troubling,” he wrote. The stock might drop to $48 a share if the FDA asks for more safety data or if doctors balk at using the device until results of larger patient studies are released next year, Lawrence Keusch, an analyst at Goldman Sachs said in a note to clients. But Keusch recently raised his rating on ABT to “buy,” saying the stock already reflects concern over a possible FDA delay.
07:45 TSTY prelim $0.03 vs ($0.02) single; revs $42.5 mln vs $43.33 mln single estimate

07:44 MSO Martha Stewart beats by $0.05, reports revs in-line; guides Q4 revs (13.13 )

Reports Q3 (Sep) loss of $0.08 per share, $0.05 better than the Reuters Estimates consensus of ($0.13); revenues rose 13.4% year/year to $69.3 mln vs the $69.2 mln consensus. Co issues guidance for Q4, sees Q4 revs of approx $120 mln vs. $125.50 mln consensus; co sees adjusted EBITDA of $37.0-39.0 mln.
07:43 CLWR Clearwire downgraded to Sell at Pali Research- tgt $15 (21.53 )

Pali downgrades CLWR to Sell from Neutral with a $15 tgt based on their checks, they do not believe that the recently launched PC card has accelerated sales that have continued to be sluggish in Q3 after disappointing Q2 results. The firm also does not believe that Sprint (S) will acquire or complete its existing transaction with Clearwire until it finds a new CEO. They believe the terms of the deal with Sprint could change including the inability to use Sprint’s distribution channels and a reduction of P.O.Ps built in 2008.
07:43 MSO sees Q4 revs $120 mln vs $125.50 mln Reuters consensus

07:43 ENDP Endo Pharm: Another strong quarter but growing cautious on Rapinyl – Broadpoint Capital (29.25 )

Broadpoint Capital notes ENDP announced strong third-quarter financial results yesterday. Rev and adjusted earnings per share were reported at $267.4 mln and $0.46, compared with their ests of $265.8 mln and $0.45, respectively. Management also announced an upward revision to their annual earnings per share range to $1.79-$1.84 from $1.75-$1.80. Their annual 2007 earnings per share ests remain unchanged at $1.87. Firm notes mgmt was looking at near-term opportunities to diversify the co’s rev from Lidoderm. They interpreted this to mean that the co is contemplating the acquisition of a marketed product (perhaps as part of a multi-faceted transaction that would include earlier stage products or possibly a platform technology).
07:43 WMG Warner Music Group downgraded to Sell from Neutral at Merrill (10.09 )

07:42 ARJ Arch Chemicals beats by $0.02, misses on revs; guides Q4 EPS in-line (42.80 )

Reports Q3 (Sep) earnings of $0.45 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.43; revenues rose 8.0% year/year to $376.5 mln vs the $381 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.17-0.27 vs. $0.22 consensus.
07:42 MSO prelim ($0.08) vs ($0.13) Reuters consensus; revs $69.3 mln vs $69.20 mln Reuters consensus

07:42 COGT Cogent downgraded to Hold from Buy at Soleil (14.16 )

07:41 REG Regency Centers upgraded to Buy from Neutral at Merrill (69.87 )

07:40 RDN Radian Group: A tough quarter and still not out of the woods; tgt cut to $15 – FBR (10.88 )

Friedman Billings lowers their RDN tgt to $15 from $26 following Q3 earnings. Firm says despite expectations for a dismal 3Q, RDN surprised to the downside with a loss of $8.78 per share (-$3.87 operating EPS). They note that RDN is on watch for potential downgrade by Moody’s, which will remain an overhang on valuation until Moody’s chimes in. Despite the substantial upside to our price target, they maintain our Market Perform rating given the risks associated with any potential downgrade. The firm continues to believe the Mortgage Insurer’s maintain adequate resources to pay off future claims. However, what they cannot forecast is any potential downgrades by the rating agencies, which could put the companies into runoff.
07:40 TE TECO Energy reports Q3 (Sep) results, beats on revs (16.48 )

Reports Q3 (Sep) earnings of $0.44 per share, includes charges & gains, may not be comparable to the Reuters Estimates consensus of $0.34; revenues rose 7.3% year/year to $990 mln vs the $850.2 mln consensus.
07:40 US large-cap bank stocks cut to Neutral from Attractive at Goldman – Bloomberg

07:39 ICAD icad reports EPS of ($0.02) vs ($0.01) single estimate; reports revs up 24% yr/yr to $6.3 mln vs $6.6 mln single estimate (2.82 )

Co reaffirms Y07 revs of $26-27 mln vs $26.0 mln single estimate.
07:38 NXTM Nxstage Medical reports Q3 EPS of ($0.54), include charges, may not be comparable to ($0.45) consensus; reports revs up 111% yr/yr to $11.6 mln vs $11.3 mln consensus (14.13 )

07:36 SCG SCANA Corp beats by $0.01, reports revs in-line; reaffirms FY07 EPS guidance; guides FY08 EPS above consensus (40.30 )

Reports Q3 (Sep) earnings of $0.79 per share, $0.01 better than the Reuters Estimates consensus of $0.78; revenues rose 1.6% year/year to $1.08 bln vs the $1.07 bln consensus. Co reaffirms guidance for FY07, sees EPS of $2.70-2.85 vs. $2.68 consensus. Co issues upside guidance for FY08, sees EPS of $2.90-3.05 vs. $2.84 consensus.
07:36 FCTR First Charter Corp. misses by $0.07, misses on revs (30.05 )

Reports Q3 (Sep) earnings of $0.33 per share, excluding non-recurring items, $0.07 worse than the Reuters Estimates consensus of $0.40; revenues rose 11.5% year/year to $56.3 mln vs the $58.8 mln consensus.
07:35 NI NiSource misses by $0.02, beats on revs; reaffirms FY07 EPS guidance; guides FY08 EPS below consensus (19.96 )

Reports Q3 (Sep) earnings of $0.08 per share, $0.02 worse than the Reuters Estimates consensus of $0.10; revenues rose 8.5% year/year to $1.26 bln vs the $1.19 bln consensus. NI sees EPS of $1.25-1.35 for 2008-2010. Co reaffirms guidance for FY07, sees EPS of approx $1.35 vs. $1.39 consensus. Co issues downside guidance for FY08, sees EPS of $1.25-1.35 vs. $1.43 consensus. Co also sees 2009-2010 EPS of $1.25-1.35.
07:35 SI Siemens: New Siemens chief poised to slash jobs – FT (131.15 )

FT reports Peter Loscher, new CEO of the co, is preparing a series of aggressive earnings targets for senior managers, along with thousands of job cuts, in an effort to introduce a US-style “can-do” culture at Europe’s biggest engineering group. Under the plans, he will tie the pay of top executives more closely to their performance in achieving the targets, which will be aligned with those of Siemens’ main competitors such as General Electric and ABB, the Swiss-Swedish group. Behind the project, more details of which are likely to be outlined next week, is a bid by Mr Loscher to narrow a big profitability gap between Siemens and some of its rivals, chiefly GE. While Mr Loscher is not yet ready to say how many jobs will go, some analysts think the cull could be up to 10,000 in the next few years, mostly outside Germany.
07:34 BRNC Bronco Drilling: Smaller work force force drives positive surprise; market still weakening – FBR (14.54 )

Friedman Billings believes that dat rates and utilization will remain under downward pressure until demand for land rigs starts to grow at a pace similar to supply or the growth in supply slows to a crawl, neither of which seems likely before 2008 at this point. New rigs being delivered by competitors will likely continue to displace older, less capable units, including some of Bronco’s rigs. Nevertheless, our recent downward revision to ests for BRNC appears to have been too severe, and they are reversing part of that earlier cut.
07:34 AOC Aon: Solid 3Q07 – FBR (47.05 )

Friedman Billings notes AOC has done an excellent job growing organic res and improving operations through various restructuring programs. As a result, the co has improved margins in the brokerage segment to 16.4% in 3Q07 from 10.8% in 3Q05, a dramatic turnaround, considering the softening pricing market that has persisted in recent quarters. Shares of AOC have gained almost 30% year to date, while management’s efforts have helped the company climb to the top of the insurance brokerage industry. AOC is now the only functional global broker left in the market, as Marsh is in total disarray and Willis is too small relative to AOC to compete seriously for market share.
07:34 HYTM Hythiam: PROMETA’s first placebo-contolled trial validates cravings reduction – Brean Murray (6.88 )

Brean Murray notes PROMETA demonstrated effective in reduction of methamphetamine cravings. PROMETA successfully achieved its primary endpoint, measuring a statistically significant 10.2 point reduction in cravings by combined cravings score and a statistically significant 2.3 point reduction in cravings measure by the strongest craving score, vs placebo. Firm believes these results validate PROMETA’s pharmaco-intervetion portion of the protocol and look forward to the 120- day results from Dr. Ling, expected in 1H08.
07:33 PNY Piedmont sees FY08 EPS of $1.45-$1.55 vs $1.52 consensus (24.70 )

07:33 THOR Thoratec: Q3 rev in-line, earnings below expectations; U.S. launch timeline continues to extend – Lazard (19.03 )

Lazard notes the upcoming Nov 30 panel approval vote likely to provide good selling opportunity. Firm anticipates that positive pre-panel sentiment will keep THOR shares’ impressive valuation multiples intact until after the Nov 30 vote. After that point, firm foresees no additional positive catalysts in 2008. Firm is extending their U.S. launch forecast, to June 15 from March 15, resulting in a $19 mln reduction in their 2008 rev est. The June 15 forecast allows the FDA 195 days to respond to the Nov 30 panel vote. While this would still be faster turnaround than the historical precedent suggests, it would not be the record-setting turnaround time that the consensus is expecting.
07:33 PBG Pepsi Bottling reinitiated with a Peer Perform at Bear Stearns (42.65 )

07:33 HVT Haverty Furniture reports that Oct comparable sales decreased 4.4% (8.25 )

Co reports that on a comparable-store basis, October sales decreased 4.4%. Comparable-store sales do not include stores or locations opened, closed or otherwise non-comparable during the last 12 months. Sales for the first ten months of 2007 decreased 9.2% to $641.3 mln compared with $706.5 mln in 2006. On a comparable-store basis, sales decreased 10.9% for the first ten months.
07:33 SCG sees FY08 $2.90-3.05 vs $2.84 Reuters consensus

07:33 SCG reaffirms FY07 $2.70-2.85 vs $2.68 Reuters consensus

07:33 PAS PepsiAmericas reinitiated with an Underperform at Bear Stearns (34.96 )

07:32 SCG prelim $0.79 vs $0.78 Reuters consensus, $0.79 First Call; revs $1.08 bln vs $1.07 bln Reuters consensus

07:32 BUD Anheuser-Busch reinitiated with a Peer Perform at Bear Stearns (50.41 )

07:32 SPW SPX Corp tgt increased to $101 at FBR (104.27 )

Friedman Billings raises their tgt on SPW to $101 from $87 following quarterly results of $1.36 (consensus $1.20). Firm increases their 2007 EPS est to $4.78 from $4.68; their 2008 EPS est to $5.80 from $5.75. Firm expects the co to continue to benefit from exposure to strong end market positions in power, energy, process, and general industrial markets, along with benefits from internal initiatives that drive margin increases.
07:32 ETC Environmental Tectonics simulation division awarded contract to deliver disaster management simulator to Hong Kong Fire Service (2.24 )

Co’s Simulation Division announces the signing of a contract with the Hong Kong Fire Services Department to deliver a multi-station ADMS-COMMAND, the next- generation Advanced Disaster Management Simulator training system. The contract includes three open-ended, dynamic scenarios within a regionalized virtual environment. The scenarios include a multi-vehicle highway traffic accident, a B-747 crash-landed in a residential area and a high-rise apartment building fire. The scenarios can be changed to fit various training objectives.
07:32 NI sees EPS of $1.25-1.35 for 2008-2010

07:32 TSCO Tractor Supply says Board of Directors appoints Jim Wright as Chairman (40.90 )

Co announces that its Board appointed Jim Wright, President and Chief Executive Officer, as Chairman of the Board. As part of the Company’s previously announced succession plan, Joe Scarlett is retiring from his role as non-executive Chairman of the Company’s board of directors; he has been named Chairman Emeritus.
07:31 NI sees FY07 of approx $1.35 vs $1.39 Reuters consensus;undefined

07:31 COLY Coley Pharma: Clinical diversification strengthend the pipeline, 3Q07 results – Merriman (3.23 )

Merriman notes COLY announced 3Q07 earnings results after the market close yesterday. Milestones within the next 12-24 months include TLR antagonist Phase I results, the advancement of additional TLR agonists into clinical trials, and expansion of Pfizer’s (PFE) clinical commitment with Coley compounds. Firm is encouraged by increased pipeline diversification. However, due to limited near-term events, they recommend investors hold pending clinical advancement of new drug candidates and progress in the co’s partnered clinical programs.
07:31 TE prelim $0.44, may not compare vs $0.34 Reuters consensus, $0.35 First Call; revs $990.0 mln vs $850.19 mln Reuters consensus

07:31 KEP Korea Electric Power Corp downgraded to Equa Weight from Overweight at Lehman (21.53 )

07:31 RATE Bankrate: High operating leverage leads to upside despite of macro headwinds – Merriman (47.80 )

Merriman notes RATE’s 3Q07 results were in-line on rev and ahead on EPS and EBITDA due to lower marketing expenses. Due to that leverage, firm is raising their FY07 and FY08 EBITDA and EPS ests, but maintaining their FY08 rev ests. The decline in inventory sellthrough rates in the Graphic ad segment raised a yellow flag; however, the mortgage hyperlink revs grew healthy again and the co hinted at more price increases early next year, which eased some of firm’s concerns. They remain on the sidelines but are incrementally more positive post 3Q07.
07:31 NI prelim $0.08 vs $0.10 Reuters consensus; revs $1.26 bln vs $1.19 bln Reuters consensus

07:30 ADBL Audible: Profitable growth strategy is working; raising Fy08 ests – Merriman (13.20 )

Merriman notes ADBL’s 3Q07 results were in-line with expectations and the co’s 4Q07 outlook was somewhat mixed (slightly lower rev but better EBITDA). Key subscriber metrics were steady over the last two quarters with new subscriber additions, churn, and SAC better than expected. On a macro level, firm believes that the mainstream adoption of digital portal players like the iPod is just now reaching the co’s target market of 40-year-old+ avid audiobook listeners. Also, they believe the proliferation of smartphone devices such as the iPhone should increase audio content consumption.
07:30 SGMS Scientific Games awarded contract with CIE in Mexico (35.69 )

Co announces that its wholly owned subsidiary The Global Draw was awarded a five-year contract to supply up to 1,500 of its multi-game server based gaming terminals to Corporacion Interamericana de Entretenimiento in Mexico. The contract is expected to generate annual revenues of approx $8 mln, and was awarded after the successful completion of a pilot program.
07:30 CAB Cabela’s tgt cut to $21 from $24 at Friedman Billings (19.00 )

Friedman Billings cuts their tgt to $21 from $24 after the co reported Q3 EPS of $0.20, at the high end of its $0.18-$0.20 pre-released range and a penny above both FBR and consensus ests. In response to a considerably weaker consumer environment and unseasonably warm weather, the co is taking a more promotional stance to drive traffic, but with a renewed focus on S.K.U profitability as the Q3 strategy missed the mark. Despite trough valuations, firm advises caution in this questionable consumer environment, as the co’s operating model is very sensitive to sales shifts, given the high fixed-cost nature of its expanding retail business, which could put EPS estimates at risk if weakness persists.
07:30 SWIM Investools: Student acquisitions could surprise in FY08 – Merriman (14.21 )

Merriman notes 3Q07 was well ahead of expectations due to improved operating leverage, particularly of marketing expenses, and due to higher revenue growth in the thinkorswim segment. Synergies between Education and TOS segments continue to play out, creating competitive advantages and changing the paradigm in the online brokerage sector. TOS is acquiring above average quality brokerage accounts and likely taking market share. Margins should continue to expand, which could lead to further upside to ests and expansion of valuation multiples.
07:29 ATVI Activision: Buy into Monday’s results – Broadpoint Capital (23.01 )

Broadpoint Capital notes ATVI reports 2Q08 results Monday, Nov 5. Firm expects ATVI to post significant upside to their and Street consensus expectations. Firm’s rev and EPS ests are $268 mln and $0.00; the Street consensus expectations are $267.1 mln and $(0.01), respectively. Firm expects the co to increase FY08 guidance only by upside to 2Q08 results. While they expect a “mere” reiteration of FY08 guidance, by now the Street knows that ATVI prefers to set expectations it can comfortably exceed. Firm sees significant upside potential to their 2Q08 ests as a positive catalyst.
07:29 PHG Royal Philips Electronics proceeds with sale of MedQuist unit – CNNmoney.com (41.20 -0.14)

CNNmoney.com reports the co said it intends to proceed with the sale of its 70% stake in MedQuist (MEDQ), the U.S. medical transcription and billing services co. Philips said Friday that the sale will result in a loss of approximately 320 mln euros, non-cash and non-tax deductible, to be recognized in Q4 of 2007.
07:28 DRIV Digital River: Hearing downgraded to neutral from buy at tier 1 firm (51.55 )

07:28 IDSY I.D. Systems: 3Q07 results significantly better than expected; mgmt sounds more confident – Merriman (13.13 )

Merriman reiterates their Buy rating on IDSY after it reported 3Q07 results, which were significantly better than expectations. The co achieved $6.5 mln in rev and was breakeven on an adjusted EPS basis vs. their ests of $3.9 mln in rev and ($0.12) in EPS. The low point appears to be 2Q07 as the new sales and professional services team continue to execute. Mgmt is sounding much more confident about the business and we expect to hear announcements in the near-term. Given improved visibility from its new sales structure, they anticipate the co providing annual guidance by 1H08.
07:28 COGN Cognos: Hearing upgraded to buy from neutral at tier 1 firm (48.93 )

07:27 ABK AMBAC Fincl: Hearing downgraded to neutral from buy at tier 1 firm (29.57 )

07:27 Peltz files to raise $750 mln for acquisitions – FT

FT reports Nelson Peltz, the US activist investor, on Thursday night filed with US regulators to raise up to $750 mln from stock mkt investors for a large shell co that will pursue acquisitions. Trian Acquisition I will have until late 2009 to identify an acquisition target and take control of it using at least 80 per cent of its assets. The addition of a “special purpose acquisition company”, as such entities are known, follows Mr Peltz’s decision three years ago to raise a dedicated fund for activist investments, known as Trian Partners.
07:27 BGFV Big 5 Sports tgt cut to $20 from $22 at Friedman Billings (16.49 )

Friedman Billings cuts their tgt to $20 from $22 after the co reported Q3 operating results last night after the close that were better than expected, with EPS coming in well ahead of expectations. However, firm says the near-term outlook remains concerning, possibly offsetting some of the positive developments. Unfortunately, the timing of the BGFV margin enhancement story could not be worse, as this traditionally very consistent business has been infiltrated by a horrible housing downturn, poor weather, and an otherwise unfavorable macro outlook, which has equated to S.S.S. pressure that may last for several qtrs.
07:27 MBI MBIA Inc: Hearing downgraded to neutral from buy at tier 1 firm (38.06 )

07:26 AIV Apt Inv & Mgt earnings color (44.24 ) -Update-

Reuters Estimates is telling us that the adjusted FFOPS of $ 0.86 excluding impairment and preferred redemption charges is comparable to their consensus of $0.83. See 7:11 comment for full report.
07:25 GLUU Glu Mobile downgraded to neutral from buy at tier 1 firm (10.41 ) -Update-

07:24 ALY Allis-Chalmers Energy beats by $0.01, beats on revs (17.20 )

Reports Q3 (Sep) earnings of $0.37 per share, $0.01 better than the Reuters Estimates consensus of $0.36; revenues rose 70.4% year/year to $147.9 mln vs the $143.2 mln consensus.
07:23 GLUU Glu Mobile downgraded to Hold at Cantor Fitzgerald- tgt cut to $9.50 from $13 (10.41 )

Cantor Fitzgerald downgrades GLUU to Hold from Buy and cuts their tgt to $9.50 from $13 following earnings and saying they believe investors will wait until there is greater visibility into the back half of FY08 before getting more positive on the stock.
07:22 BSY British Sky Brdcst reports Q1 EPS of GBP 5.00 vs 5.48 Reuters Estimates consensus; revs +11% to GBP 1.18 bln vs GBP 1.17 bln consensus (57.16 )

07:20 EBAY eBay downgraded to Peer Perform from Outperform at Bear Stearns (35.00 )

07:20 FRP Fairport Comms earnings color (17.50 ) -Update-

Reuters Estimates is telling us that an actual of $0.21, excluding merger transaction and transition expenses $12.5 mln, is comparable to their consensus $0.13. See 6:34 comment for the full earnings report.
07:17 CALLS Early Research Calls VI

Upgrades: RBC upgrades Enbridge Energy (EEQ 55.23) to Sector Perform from Underperform… Nollenberger upgrades Big 5 Sporting Goods (BGFV 16.49) to to Buy from Neutral and sets a $24 tgt, following stronger than expected Q307 operating results and believe management’s Q407 guidance could prove conservative. Miscellaneous: UBS initiates Burger King (BKC 26.10) with a Buy and a $36 tgt… Wachovia initiates Discovery Holding (DISCA 27.78) with a Market Perform… Calyon initiates Metavante (MV) with a Neutral and a $23 tgt saying Metavante begins regular-way trading on the NYSE this morning. The firm says despite their generally favorable take on the company, they feel that the valuation level achieved during the past four days of when-issued trading is a bit rich.
07:14 CALLS Early Research Calls V

Downgrades: RBC downgrades Silver Wheaton (SLW 16.19) to Sector Perform from Outperform… Raymond James downgrades O’Charleys (CHUX 14.88) to Outperform from Strong Buy… KeyBanc downgrades PMA Capital (PMACA 9.39) to Hold from Buy, based on disappointing Q307 results driven by adverse reserve development… Deutsche Bank downgrades Electronic Arts (ERTS 58.74) to Sell from Hold with a $45 tgt following earnings. The firm says the shares are reacting positively to fiscal 2Q upside (aided by forex gains and sell-in). With the stock up ~20% this year, firm says underlying earnings still have not moved up much (despite tail-winds of fx, distribution (EA Partners) revs and cost management… ThinkEquity downgrades Blackboard (BBBB 47.83) to Accumulate from Buy and raises their tgt to $53 from $51 following earings. The firm says they are lowering their rating given the investments to be made in 2008 and their potential impact on operating margins… UBS downgrades YUM Brands (YUM 39.08) to Neutral from Buy… Wachovia downgrades Trinity Industries (TRN 32.38) to Market Perform from Outperform saying while they believe that the earnings outlook for TRN this cycle is more favorable due to its strong barge and wind tower businesses, its production in low-cost regions and its leasing business, pricing pressure from a moderating order environment along with a declining backlog in its rail segment could override the positives and temper upside potential to TRN’s share price over the near-term.
07:14 AXE Anixter profiled in New America section of IBD (68.84 -3.01)

IBD reports the co is the world’s biggest distributor of communication products, electrical and electronic wire and cable, and a major distributor of fasteners and other small parts. It distributes more than 350,000 products, such as connectors, adapters and power cords. There’s a high amount of spending and growth by cos to upgrade data centers, adds analyst Jeffrey Beach of Stifel Nicolaus. That’s benefiting Anixter. Beach says its prime customers are the largest 2,000 to 3,000 companies in the U.S., leaders in Europe and large govt agencies. These customers are doing the heavy spending on data center upgrades, he adds. CEO Bob Grubbs is encouraged by Anixter’s performance amid the tough credit environment in the U.S, its biggest mkt. Followers see the co continuing its winning streak. Analysts polled by Thomson Financial expect full-year earnings to rise 34% to $5.66 a share, then another 13% in 2008.
07:13 NRG NRG Energy reports Q3 (Sep) results, beats on revs (44.50 )

Reports Q3 (Sep) earnings of $0.93 per share, may not be comparable to the Reuters Estimates consensus of $0.80; revenues fell 8.0% year/year to $1.79 bln vs the $1.7 bln consensus. The co is raising 2007 adjusted EBITDA guidance to $2,300 mln from $2,200 mln and cash flow from operations to $1,500 mln from $1,420 mln to reflect plant and commercial operations performance year-to-date and a fully hedged baseload position for the balance of the year.
07:11 AIV Apt Inv & Mgt reports Q3 (Sep) results, beats on revs; guides Q4 EPS in-line (44.24 )

Reports Q3 (Sep) funds from operations of $0.83 per share, may include gains, charges, may not be comparable to the Reuters Estimates consensus of $0.83; revenues rose 6.3% year/year to $431.2 mln vs the $408.4 mln consensus. Co issues in-line guidance for Q4, sees FFO of $0.89-0.95 vs. $0.90 consensus.
07:10 JRCC James River Coal reports Q3 (Sep) results, beats on revs (6.15 )

Reports Q3 (Sep) loss of $0.60 per share, includes charges, may not be comparable to the Reuters Estimates consensus of ($0.62); revenues fell 5.8% year/year to $130.1 mln vs the $127.2 mln consensus.
07:10 ENCY Encysive Pharma misses by $0.01, misses on revs (1.28 )

Reports Q3 (Sep) loss of $0.32 per share, $0.01 worse than the Reuters Estimates consensus of ($0.31); revenues rose 39.7% year/year to $8.8 mln vs the $8.9 mln consensus.
07:09 OMG OM Group beats by $0.13, beats on revs (51.29 )

Reports Q3 (Sep) earnings of $1.30 per share, $0.13 better than the Reuters Estimates consensus of $1.17; revenues rose 55.3% year/year to $264.6 mln vs the $212.6 mln consensus. Co said, “Looking ahead, we continue to believe that our efforts will result in a company with consolidated revenues of $2 billion to $4 billion by 2010 and a ranking in the top quartile of specialty chemicals and specialty materials companies in terms of EBITDA margins and other financial metrics”.
07:09 DUK Duke Energy beats by $0.09, beats on revs; guides FY07 EPS in-line (18.82 )

Reports Q3 (Sep) earnings of $0.48 per share, $0.09 better than the Reuters Estimates consensus of $0.39; revenues rose 16.4% year/year to $3.82 bln vs the $3.42 bln consensus. Co issues guidance for FY07, sees EPS of well above previous guidance of $1.15 vs. $1.19 consensus.
07:07 RDEN Elizabeth Arden beats by $0.09, reports revs in-line; guides Q2 EPS below consensus; guides FY08 EPS in-line (24.09 )

Reports Q1 (Sep) earnings of $0.04 per share, $0.09 better than the Reuters Estimates consensus of ($0.05); revenues rose 6.7% year/year to $271.8 mln vs the $270.4 mln consensus. RDEN sees Y08 revs up 5-7%. Co issues downside guidance for Q2, sees EPS of $1.11-1.16 vs. $1.21 consensus. Co issues in-line guidance for FY08, sees EPS of $1.65-1.75 vs. $1.68 consensus.
07:07 EBS Emergent Biosolutions beats by $0.19, beats on revs (10.14 )

Reports Q3 (Sep) earnings of $0.10 per share, $0.19 better than the Reuters Estimates consensus of ($0.09); revenues rose 3.3% year/year to $43.6 mln vs the $30.3 mln consensus. “Based on the strength of our revenues and the new multi-year contract with HHS, we have revised upward our expectations for annual revenue growth for 2007. We continue to push forward the development of our product pipeline, while maintaining a commitment to sustain our trend of annual profitability.”
07:06 WR Westar Energy beats by $0.14, beats on revs; guides FY07 EPS in-line (26.01 )

Reports Q3 (Sep) earnings of $0.99 per share, $0.14 better than the Reuters Estimates consensus of $0.85; revenues rose 6.3% year/year to $548.5 mln vs the $517.6 mln consensus. Co issues in-line guidance for FY07, sees EPS of $1.63-1.78 vs. $1.70 consensus.
07:05 RDEN sees Y08 revs up 5-7%

07:05 VIA.B Viacom beats by $0.05, beats on revs (40.41 )

Reports Q3 (Sep) earnings of $0.65 per share, excluding non-recurring items, $0.05 better than the Reuters Estimates consensus of $0.60; revenues rose 24.2% year/year to $3.27 bln vs the $3.01 bln consensus.
07:05 RDEN sees Q2 $1.11-1.16 vs $1.21 Reuters consensus; sees revs up 5-7%

07:04 RDEN sees FY08 $1.65-1.75 vs $1.68 Reuters consensus

07:04 RDEN prelim $0.04 vs ($0.05) Reuters consensus; revs $271.8 mln vs $270.36 mln Reuters consensus

07:04 JRCC prelim ($0.60) vs ($0.62) Reuters consensus; revs $130.05 mln vs $127.19 mln Reuters consensus

07:04 PVTB PrivateBancorp announces intention to issue common stock in a private placement offering; aggregate dollar amount of the offering has not yet been determined (26.10 )

07:03 AIV sees Q4 funds from operations of $0.89-0.95 vs $0.90 Reuters consensus

07:03 AIV prelim FFO of $0.58 may not compare to $0.83 Reuters consensus; revs $431.2 mln vs $408.35 mln Reuters consensus, $430.03 mln First Call

07:03 ENCY prelim ($0.32) vs ($0.31) Reuters consensus; revs $8.8 mln vs $8.90 mln Reuters consensus

07:03 XING Qiao Xing announces sale of common stock (10.30 )

Co announces that it has obtained a binding commitment from an investor to purchase 1,300,000 shares of its common stock at a price of $11.80 per share, for gross proceeds of $15,340,000.
07:03 OMG prelim $1.30 vs $1.17 Reuters consensus, $1.15 First Call; revs $264.6 mln vs $212.55 mln Reuters consensus

07:02 WR reaffirms FY07 $1.63-1.78 vs $1.70 Reuters consensus

07:02 DUK sees FY07 well above previous guidance of $1.15 vs $1.19 Reuters consensus

07:02 WR prelim $0.99 vs $0.85 Reuters consensus, $0.79 First Call; revs $548.5 mln vs $517.63 mln Reuters consensus

07:02 VNDA Vanda Pharma announces that it no longer intends to offer convertible senior notes (11.15 )

Co announces that, despite strong demand, it no longer intends to offer convertible senior notes. The decision not to pursue a convertible note offering at this time was due principally to prevailing market conditions resulting in note terms that were not acceptable to the co.
07:02 ATRO Astronics Corporation reports Q3 earnings above two-analyst est; issues upside guidance (39.97 )

Co reports Q3 EPS of $0.48 vs $0.27 two-analyst est; revs rose 36% YoY to $37.7 mln vs $33.61 mln two-analyst est. Co sees FY07 revs $155-160 mln vs $152.44 mln two-analyst est.
07:02 DUK prelim $0.48 vs $0.39 Reuters consensus; revs $3.82 bln vs $3.42 bln Reuters consensus

07:01 NRG prelim $0.93 vs $0.80 Reuters consensus, $0.77 First Call; revs $1.79 bln vs $1.70 bln Reuters consensus

07:01 ABXA ABX Air to acquire Cargo Holdings; expected to be accretive to earnings starting in 2008. (6.10 )

Co announces that it has agreed to acquire Cargo Holdings International, a privately held provider of outsourced air cargo services in a transaction valued at approx $350 mln. C.H.I. expects to report revs of $300 mln for the year ended Dec 31, 2007, and is a solidly profitable co. “We believe that C.H.I.’s relationships with its two largest customers, BAX/Schenker and the U.S. Government, complement our existing relationships with DHL and other customers, and will establish a more balanced and sustainable source of revenue and earnings going forward.”
07:01 CBB Cincinnati Bell beats by $0.01, beats on revs; guides FY07 revs in-line (5.08 )

Reports Q3 (Sep) earnings of $0.09 per share, $0.01 better than the Reuters Estimates consensus of $0.08; revenues rose 7.5% year/year to $344 mln vs the $331.8 mln consensus. Co issues in-line guidance for FY07, sees FY07 revs of $1.3 bln vs. $1.31 bln consensus.
07:00 CALLS Early Research Calls IV

Upgrades: Friedman Billings upgrades Tercica (TRCA 5.71) to Market Perform from Underperform and raises their tgt to $7 from $5, following an an-line quarter for Increlex and based on Street estimates for Increlex and Somatuline that have come down to the makeable point. Miscellaneous: Baird initiates Metavante Technologies (MV 25.10) with a Neutral and sets a $26 tgt, as they expect the co to generate stable/non-cyclical growth, given low customer attrition, high levels of recurring revenue, and few large competitors… UBS initiates Capital Trust (CT 32.50) with a Neutral… UBS initiates CapitalSource (CSE 17.34) with a Neutral… CIBC inititaes Genzyme (GENZ 73.96) with a Sector Perform saying expectations for solid growth are now reflected in price… J.P Morgan removes Davita (DVA 65.45) from their Focus List.
07:00 EBS prelim $0.10 vs ($0.09) Reuters consensus; revs $46.3 mln vs $30.33 mln Reuters consensus

07:00 BAIRY.PK: Cost cuts boost British Airways profit (89.40 )

According to Reuters, British Airways reported a 26% increase in first-half profit on Friday, helped by cost cutting, and said its business and first-class market remained strong. “Our cost performance was excellent, helped by the weak U.S. dollar,” said Chief Executive Willie Walsh. “Total costs were down 150 million pounds.” Profit before tax was 593 million pounds ($1.23 billion) in the six months to September 30, compared to 471 million a year earlier. “Premium traffic continues to be strong,” BA said in a statement. “The North Atlantic non-premium market is still soft but other non-premium markets are more encouraging.” The airline said it was on track with its goal of keeping operating margins at 10 percent or more, having hit 12.5 percent in the first half. It predicted costs excluding fuel were now expected to be 100 million pounds lower than previously forecast in the full year due to the weak dollar. Fuel costs are expected to be up by 100 million pounds on last year. “Fuel costs remain a major challenge and our fuel bill for the year is expected to top 2 billion pounds for the first time,” said Walsh.
06:59 CALLS Early Research Calls III

Downgrades: Davenport downgrades Garmin (GRMN 100.01) to Sell from Neutral… Deutsche Bank downgrades Glu Mobile (GLUU 10.41) to Hold from Buy following earnings saying the co indicated that growth in Europe was slowing and lowered Q4 and 2008 guidance. They operating margin gains do not fully offset the lowered growth profile meriting a Hold… JMP downgrades EXAR (EXAR 11.03) to Market Perform from Outperform following earnings saying they were disappointing and suggest that EXAR may have overpaid for the Sipex deal, given the low margins… Brean Murray downgrades Scientific Games (SGMS 35.69) to Sell from Hold following earnings and saying the stock is expensive based on their 08 ests. The firm says SGMS has a good growth opportunity in the long-term international expansion of instant tickets, but through a barrage of expensive, capital-intensive acquisitions this business continues to be more difficult to see… Jefferies downgrades General Communications (GNCMA 9.00) to Hold from Buy and cuts their tgt to $10.50 from $17 following earnings… Piper Jaffray downgrades DaVita (DVA 65.44) to Underperform from Market Perform with a $52 tgt following earnings, saying slowing growth needs to be reflected in valution… RBC downgrades PG&E (PCG 46.25) to Sector Perform from Outperform.
06:48 ALDN Aladdin Knowledge Systems announces a $10 mln common stock buyback program (a maximum of 500k shares) (24.04 )

06:40 MGLN Magellan Health beats by $0.28, beats on revs (40.55 )

Reports Q3 (Sep) earnings of $0.63 per share, $0.28 better than the Reuters Estimates consensus of $0.35; revenues rose 29.9% year/year to $558.1 mln vs the $540 mln consensus. Co issues upside guidance for FY07, sees EPS of $2.13-2.39 vs $1.73 consensus.
06:39 CALLS Early Research Calls II

Upgrades: Citigroup upgrades Coca-Cola Enterprises (CCE 25.28) to Buy from Hold… Lehman upgrades Diageo plc (DEO 90.30) to Equal-weight from Underweight… Friedman Billings upgrades Millennium Pharma (MLNM 11.72) to Outperform from Market Perform and raises their tgt to $16 from $10, following Q3 EPS and revenue that exceeded consensus estimates… CIBC upgrades Vitesse Semi (VTSS 1.10) to Sector Perform from Underperform following the co’s F4Q07 business update. The firm believes real progress has been made on a number of fronts, including liquidity, product line pruning, op-ex reductions, litigation, and governance. Downgrades: Citigroup downgrades Pepsi Bottling (PBG 42.65) to Hold from Buy… UBS downgrades Helicos BioSciences (HLCS 14.18) to Sell from Neutral… CIBC downgrades Agrium (AGU 60.67) to Sector Perform from Outperform following earnings and recent share price appreciation and stretched valuation… CIBC downgrades American Reprographics (ARP 18.92) to Sector Perform from Outperform… CIBC downgrades American Reprographics (ARP 18.93) to Sector Perform from Outperform following earnings that were lower than their ests. The firm says although organic growth of 4.6% was essentially in line with 1H07, cyclical conditions continue to slow ARP’s overall growth…. CIBC downgrades Town Sports Internation (CLUB 13.81) to Sector Perform from Outperform following earnings and saying they believe the intra-qtr departure of its CEO has weakened CLUB more than expected, especially in sales & marketing. Given entrance of new competition next year, the firm believes risks outweigh rewards at this point.
06:34 FRP Fairport Comms reports Q3 (Sep) results, beats on revs; guides FY07 revs in-line (17.50 )

Reports Q3 (Sep) loss of $0.15 per share, includes charges, may not be comparable to the Reuters Estimates consensus of $0.13; revenues rose 7.1% year/year to $75.7 mln vs the $71.6 mln consensus. Co issues in-line guidance for FY07, sees FY07 revs of $281-284 mln vs. $282.49 mln consensus.
06:32 APL Atlas Pipeline reports Q3 EPS of $0.54 vs $0.50 Reuters consensus; reports revs up 201% yr/yr to $242.3 mln with no estimate (49.00 )

06:32 HPOL Harris Interactive reports EPS in-line, misses on revs; reaffirms FY08 EPS guidance, revs guidance (4.75 )

Reports Q1 (Sep) earnings of $0.02 per share, in-line with the Reuters Estimates consensus of $0.02; revenues rose 16.9% year/year to $55.2 mln vs the $57.1 mln consensus. Co reaffirms guidance for FY08, sees EPS of $0.17-0.18 vs. $0.17 consensus; sees FY08 revs of $258-265 mln vs. $259.20 mln consensus.
06:29 Sensex ends up 247pts at 19,971 – The Business Standard

The Business Standard reports that mirroring weakness in world markets, the Sensex opened with a significant negative gap of 359 points at 19,365, and soon touched a low of 19,256. The index, thereafter, erased some of its losses and displayed steady movement for most part of the trading day. Fresh buying in late noon trades saw the index rebound into the positive zone. The buying momentum was so strong that the index rallied to a high of 20,026 – up 661 points from the day’s low. The Sensex finally ended (provisional) with a gain of 247 points at 19,971.
06:29 Asian stocks fall on renewed subprime concern; banks lead drop – Bloomberg.com

Bloomberg.com reports Asian stocks fell the most in more than two months, led by financial shares, on concern Citigroup may be short of capital, renewing speculation losses from U.S. subprime loans will reduce profits… The Nikkei 225 Stock Average slid 2.1%, while Taiwan’s Taiex index fell the most in 11 weeks. Other markets retreated, except India, Indonesia and Sri Lanka. The Philippines was closed for a holiday.
06:29 Global stocks drop; Fortis, Barclays, Mitsubishi UFJ fall – Bloomberg.com

Bloomberg.com reports stocks in Europe and Asia declined, led by financial companies, on concern losses from the U.S. subprime-mortgage collapse will deepen… Europe’s Dow Jones Stoxx 600 Index sank 0.7% to 380.84. Benchmarks fell in 16 of the 17 western European markets that were open. The U.K.’s FTSE 100 decreased 0.7% and Germany’s DAX slid 0.9%. France’s CAC 40 lost 0.6%.
06:20 MEMY Memory Pharma announces positive phase 2a results for MEM 3454 in Alzheimer’s Disease (0.93 )

Co announces positive top-line data from the randomized, placebo-controlled, multi-center Phase 2a proof-of-concept trial of MEM 3454, the co’s lead nicotinic alpha-7 receptor partial agonist, in 80 patients with mild to moderate Alzheimer’s disease over an eight week treatment period. The trial was an exploratory efficacy study to learn about MEM 3454 as a potential treatment for Alzheimer’s disease. The primary endpoint of the trial was the change from baseline in the Quality of Episodic Secondary Memory factor score of the Cognitive Drug Research battery. QESM is a composite score derived from memory tests in the CDR battery that measure the ability to store, hold and retrieve information. There were three oral daily doses of MEM 3454 tested in the trial, 5 mg, 15 mg and 50 mg. The CDR battery was administered at baseline and on six days during the treatment period, at four time points each day. For the eight hour post-dose time points over the treatment period, subjects receiving 5 mg and 15 mg of MEM 3454 demonstrated a statistically significant effect on the QESM compared to placebo.
06:20 CALLS Early Research Calls I

Upgrades: Deutsche Bank upgrades Energizer (ENR 108.50) to Buy from Hold and lowers their tgt to $125 from $130, following Q407 EPS that was below firm and consensus estimates and based on a management outlook that is fairly bullish… Baird upgrades Accuride (ACW 8.86) to Neutral from Underperform and lowers their tgt to $8 from $10, based on valuation after the co reported a Q3 loss that was in line with expectations… Deutsche Bank upgrades Sprint Nextel (S 16.58) to Hold from Sell and raises their tgt to $17 from $15, following Q307 results that were generally in-line with revised expectations and a near-term outlook that was a cause for concern… Jefferies upgrades RadiSys (RSYS 13.59) to Buy from Hold and raises their tgt to $25 from $11.25, following Q307 results that were above firm projects accompanied by an announcement of new business for 2008. Downgrades: Deutsche Bank downgrades Duke Realty (DUK 31.43) to Hold from Buy and lowers their tgt to $30 from $40, following Q3FFO that was above firm and consensus estimates and based on its earnings mix that is changing with a higher mix of development gains which carries a low multiple than rental income… Baird downgrades Blackboard (BBBB 47.83) to Neutral from Outperform and lowers their tgt to $50 from $51, following better-than-expected Q307 results and Q407 guidance and based on valuation and expectations for only modest margin expansion in 2008… Deutsche Bank downgrades Town Sports (CLUB 13.81) to Hold from Buy and lowers their tgt to $15 from $25, following Q307 revenue and EPS that fell below firm estimates and lowered guidance… Oppenheimer downgrades Lance (LNCE 20.14) to Neutral from Buy, following Q3 EPS that was below firm estimates with lowered FY07 guidance and based on rising wheat costs that are expected to impact Q4 and FY08 EPS.
06:19 S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +7.3.
06:19 NNI Nelnet reports EPS in-line (17.89 )

Reports Q3 (Sep) earnings of $0.45 per share, excluding non-recurring items, in-line with the Reuters Estimates consensus of $0.45.
06:19 European Markets

FTSE…6524.40…-61.70…-0.9%. DAX…7811.20…-69.65…-0.9%.
06:18 Asian Markets

Nikkei…16517.48…-352.92…-2.1%. Hang Seng…30468.34…-1024.54…-3.3%.
06:17 LNT Alliant Energy beats by $0.11, reports revs in-line; guides FY07 EPS above consensus (39.46 )

Reports Q3 (Sep) earnings of $1.05 per share, excluding non-recurring items, $0.11 better than the Reuters Estimates consensus of $0.94; revenues rose 1.9% year/year to $907.3 mln vs the $903 mln consensus. Co issues upside guidance for FY07, sees EPS of $2.52-2.62 vs. $2.49 consensus.
06:16 PDC Pioneer Drilling beats by $0.02, beats on revs (11.95 )

Reports Q2 (Sep) earnings of $0.23 per share, $0.02 better than the Reuters Estimates consensus of $0.21; revenues fell 0.4% year/year to $106.5 mln vs the $100.4 mln consensus.
06:14 CI CIGNA beats by $0.21, reports revs in-line; guides FY07 EPS above consensus, revs in-line (51.75 )

Reports Q3 (Sep) earnings of $1.14 per share, excluding non-recurring items, $0.21 better than the Reuters Estimates consensus of $0.93; revenues rose 7.3% year/year to $4.4 bln vs the $4.4 bln consensus. Co issues mixed guidance for FY07, sees EPS of $3.80-4.00 vs. $3.74 consensus; sees FY07 revs of $ vs. $17.58 bln consensus.
06:12 ASVI A.S.V., Inc. misses by $0.06, misses on revs; guides FY07 EPS below consensus, revs below consensus (11.05 )

Reports Q3 (Sep) earnings of $0.13 per share, $0.06 worse than the Reuters Estimates consensus of $0.19; revenues fell 10.6% year/year to $56.3 mln vs the $61.8 mln consensus. Co issues downside guidance for FY07, sees EPS of $0.41-0.47 vs. $0.56 consensus; sees FY07 revs of $200-210 mln vs. $212.30 mln consensus.
06:08 B Barnes Group beats by $0.03, beats on revs; guides FY07 EPS below consensus (35.15 )

Reports Q3 (Sep) earnings of $0.47 per share, $0.03 better than the Reuters Estimates consensus of $0.44; revenues rose 11.9% year/year to $360.4 mln vs the $356.5 mln consensus. Co issues downside guidance for FY07, sees EPS of $1.79-1.83 vs. $1.84 consensus.
05:36 TM Toyota gains as October U.S. auto sales weaken – Reuters (114.45 )

Reuters reports Toyota (TM) snapped out of a quarter-long slump to post a slight gain in U.S. auto sales, eclipsing Ford (F) to hold onto the No.2 spot in the largest vehicle market. Toyota squeaked out a gain of less than 1% from a year earlier, snapping a three-month streak of lower sales as showroom traffic in the Midwest and elsewhere offset a continued slump in Calif. Honda Motor (HMC) reported almost flat results, with October sales off 0.2%. Nissan Motor (NSANY) bucked the downtrend to post an almost 9% sales gain year-on-year.
05:28 MER Deals with hedge funds may be helping Merrill Lynch delay mortgage losses – WSJ (62.19 )

The Wall Street Journal reports Merrill Lynch (MER), in a bid to slash its exposure to risky mortgage-backed securities, has engaged in deals with hedge funds that may have been designed to delay the day of reckoning on losses, people close to the situation said. The transactions are among the issues likely to be examined by the SEC. The SEC is looking into how firm has been valuing, or “marking,” its mortgage securities and how it has disclosed its positions to investors, a person familiar with the probe said. Regulators are scrutinizing whether Merrill knew its mortgage-related problem was bigger than what it indicated to investors throughout the summer. In one deal, a hedge fund bought $1 bln in commercial paper issued by a Merrill-related entity containing mortgages, a person close to the situation said. In exchange, the hedge fund had the right to sell back the commercial paper to Merrill itself after one year for a guaranteed minimum return, this person said. While the Merrill-related entity’s assets and liabilities weren’t on Merrill’s own balance sheet, Merrill might have been required to take a write-down if the entity was unable to sell the commercial paper to other investors and suffered losses, the person said. The deal delayed that risk for a year, the person said. In a statement, a Merrill Lynch spokeswoman said, “We don’t comment on specific transactions and we are confident in the appropriateness of our marks.”
05:24 Morning News Summary

WSJ: Deals with hedge funds may be helping Merrill (MER) delay mortgage losses. Reuters: Toyota (TM) gains as October U.S. auto sales weaken.
03:56 VRTX First studies demonstrating greater than 60% sustained viral response with half the standard treatment duration in genotype 1 chronic hepatitis C patients (31.64 )

Co announces results from interim analyses of PROVE 1 and PROVE 2, two Phase 2b clinical trials evaluating the investigational hepatitis C protease inhibitor telaprevir, dosed in combination with pegylated interferon and ribavirin. In 24-week telaprevir-based treatment regimens, genotype 1 treatment-naive HCV patients achieved sustained viral response rates of 61% and 65% in PROVE 1 (SVR 12 and SVR 24) and PROVE 2 (SVR 12), respectively. In addition, clinical researchers reported a correlation between achieving rapid viral response and achieving SVR in a 24-week telaprevir-based regimen. Interim analyses of telaprevir safety from PROVE 1 and PROVE 2 appear consistent with prior analyses, with the most common adverse events, regardless of treatment assignment, being fatigue, rash, headache and nausea.
03:53 WIRES On The Wires -Update-

DSM Biologics, a business unit of DSM Pharmaceutical Products and Crucell N.V. (CRXL) announce that they have signed a non-exclusive PER.C6 technology research licensing agreement with Brazilian-based Recepta Biopharma S.A. This agreement allows Recepta Biopharma to use the PER.C6 technology to develop four antibodies it has licensed-in from the Ludwig Institute for Cancer Research. Financial details were not disclosed.
03:40 NYX NYSE Euronext beats by $0.04, beats on revs (90.91 )

Reports Q3 (Sep) earnings of $0.76 per share, excluding an activity assessmetn fee, $0.04 better than the Reuters Estimates consensus of $0.72; revenues rose 77.2% year/year to $1.07 bln vs the $0.99 bln consensus.
02:21 CSGP CoStar Group President and Chief Executive reduces stake – Barron’s Online (54.80 )

Barron’s Online reports the chief executive of CoStar Group (CSGP) sold over $8 mln in stock this week in the wake of a poor reception to his co’s latest earnings report. President, CEO and co-founder Andrew Florance sold a total of $8.6 mln in stock from Monday to Tuesday for an average of $57.18 per share. In total he sold 151,213 shares, though 128,105 of those shares came from an options exercise Monday at an average strike price of $29.95. The remaining shares that were sold reduced Florance’s direct CoStar stake by 23,108 shares, or 10.7%. He still holds 2.9% of outstanding shares
02:20 AYR Aircastle mentioned positively in Weekday Trader – Barron’s Online (31.35 )

Barron’s Online reports there’s still a 25%-35% upside for shares of Aircastle (AYR) over the next 12 months on top of rising dividend payments. Further acquisitions of aircraft also will boost earnings. “The biggest catalyst out of [next week's] earnings report is that they don’t report anything special — that it’s just business as usual,” says John E. Leslie III, portfolio manager for Miller/Howard Investments. The co’s 8% yield is roughly twice what the U.S. Treasuries are offering these days. The backlog at airline manufacturers should sustain the strong leasing cycle for at least four years. Thus this strong outlook for Aircastle and the dividend payout make the stock attractive as it trades 15x earnings estimates for the next four quarters, adds Leslie. The co has also been diversifying its customer base to capture strong emerging-market growth and to rely less on individual clients. Aircastle is “still in the ramp-up phase” and is gaining scale that should expand margins to 57% in 2007 versus 53% in 2006, says Frank Boroch of Bear Stearns. Amid competition for planes, Aircastle has been signing some 10-year contracts; passenger aircraft generally lease for five years and cargo for eight years, says Christine Min of Calyon.
02:19 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Navios Maritime (NM), Sohu.com (SOHU), Genentech (DNA), AuthenTec (AUTH), Burlington Northern Santa Fe (BNI) and Las Vegas Sands (LVS).
02:18 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Diana Shipping (DSX), Sirius Satellite Radio (SIRI), Baidu.com (BIDU), Celgene (CELG), L-3 Communications (LLL), Becton Dickinson (BDX), Lowe’s (LOW), Union Pacific (UNP), Barrick Gold (ABX), Yamana Gold (AUY), Goldcorp (GG), Freeport-McMoRan (FCX) and Wyndham Worldwide (WYN).
02:16 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Thursday’s edition, Jim favors Apache (APA) because it is one of the few companies that believes in expensive oil. It is the king of real growth in the oil industry, he said, noting Apache’s oil production was up 9% during Q3. Compared with other oil companies, Apache isn’t locked into any delivery contracts and is free to sell oil at sky-high prices, he explained. That’s why it had the best “blowout” quarter and “single best conference call” of any oil company, he added. The new discoveries Apache has made overseas means not only increased production for the co, but more earnings visibility as well, he said. He claims Brocade (BRCD) is overlooked and notes its connection to VMware (VMW). Finally, he places sell recommendations on Crocs (CROX) and lululemon (LULU).
01:14 DHR Danaher prices 6.0 mln shares of common at $82.25 per share (82.47 )

01:11 ARNA Arena Pharma announces the pricing of its offering of 11.0 mln shares of common at $9.91 per share (9.91 )

01:10 MMR McMoRan Exploration prices $426.5 mln in offerings (12.55 )

Co prices 16.25 mln shares of common at $12.40 per share and 2.25 mln shares of 6.75% mandatory convertible preferred at $100 per share.
01:08 WIRES On The Wires

Digital Realty Trust’s (DLR) Board declared a quarterly common stock dividend of $0.31, an increase of 8.3% over the previous quarterly dividend… McMoRan Exploration (MMR) announces that it intends to offer a total of $400 mln aggregate principal amount of senior notes to the public… Parker Hannifin (PH) announces that it has acquired Kay Pneumatics Ltd., a manufacturer of pneumatic valves, cylinders and precision electro-pneumatic control systems for transportation, semi-conductor, medical and general industrial markets; financial terms weren’t disclosed.
01:03 CROX Crocs Board of Directors authorizes stock repurchase of up to 1 mln shares (47.74 )

Co announces that its Board approved an authorization to repurchase up to 1 mln shares of its common stock, effective immediately.
00:58 PRPX Portec Rail Products beats by a penny, misses on revenues (12.13 )

Reports Q3 (Sep) earnings of $0.20, $0.01 better than the Reuters Estimates consensus of $0.19; revenues rose 15.3% YoY to $28.0 mln vs the $28.5 mln consensus.
00:51 TLM Talisman Energy misses by a penny (21.05 )

Reports Q3 (Sep) earnings of $0.24, excluding non-recurring items, $0.01 worse than the Reuters Estimates consensus of $0.25; revenues rose 9% YoY to 1.99 bln vs the $1.94 bln consensus.
00:44 HE Hawaiian Electric Industries misses by a penny (22.68 )

Reports Q3 (Sep) earnings of $0.34, excluding non-recurring items, $0.01 worse than the Reuters Estimates consensus of $0.35; revenues were flat YoY ($673.5 mln vs $673.9 mln) vs the $683.22 mln consensus.
00:36 NTLS NTELOS Holdings beats by $0.04, beats on revs; guides FY07 revenue in-line (29.35 )

Reports Q3 (Sep) earnings of $0.18, $0.04 better than the Reuters Estimates consensus of $0.14; revenues rose 14% YoY to $126.9 mln vs the $125.25 mln consensus. Co issues in-line guidance for FY07, sees revenues of $497-501 mln vs the $498 mln consensus.
00:29 UNS Unisource Energy misses by $0.14, beats on revenues; guides EPS lower for FY07 (30.98 )

Reports Q3 (Sep) earnings of $0.66, $0.14 worse than the Reuters Estimates consensus of $0.80; revenues rose 6.0% to $398.2 mln YoY vs the $370.25 mln consensus. Cio issues downside guidance for FY07, sees EPS of $1.50-1.75 vs $1.79 consensus.
00:18 BKH Black Hills misses by $0.07; guides EPS in-line for FY08 (44.00 )

Reports (Sep) earnings of $0.46, $0.07 worse than the Reuters Estimates consensus of $0.53; revenues rose 3.0% to $162.4 mln YoY vs $176.37 mln consensus. Co issues in-line guidance for FY08, sees EPS of $2.35-2.55 vs $2.54 consensus.

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