Trading for the Masses

08:48 LEH Lehman Brothers: Upgrade details (65.45 )

As mentioned at 6:31 Punk Ziegel upgraded LEH to Market Perform from Sell and raised their tgt to $70 from $59 noting mgmt spole in N.Y Wednesday and the most important fact that was not mentioned is how much the co expected to mark down its securities portfolio. Unlike numbers of its competitors, Lehman suggested that there will not be a meaningful mark down. In fact, the co suggested that it was short many of the offending securities. The firm says this would mean that Lehman could make money where others are losing. The firm also notes Lehman also indicated that it had no involvement with structured investment vehicles.
08:48 ANF Abercrombie: Athorough scrubbing of the financial model; 3Q EPS preview - Caris (77.10 )

Caris notes ANF will report 3Q results on Wed, Nov 21. On Nov 9, ANF reported Oct comp store sales declined 2%. In addition, 3Q net sales increased 12.8% to $973.9 mln. As they highlighted on Oct 24, they believed there were numerous retailers at risk to missing the consensus net rev figure given the confusion regarding the impact of the calendar shift, ANF included. Firm believed the implied Oct comp store sales needed to generate the level of rev in Oct to hit 3Q net rev was too aggressive. 3Q net sales for ANF will be approx $973.9 mln vs their est of $985.3 mln and consensus $999.0 mln. Firm cuts their 3Q EPS est to $1.24 from $1.25 and cutting their FY08 EPS est to $5.79 from $5.86.
08:47 CPA Copa Holdings reports EPS in-line, revs in-line (32.80 )

Reports Q3 (Sep) earnings of $0.89 per share, in-line with the Reuters Estimates consensus of $0.89; revenues rose 14.7% year/year to $264.6 mln vs the $264.9 mln consensus.
08:47 HP prelim $0.97, ex gains vs $0.88 Reuters consensus, $0.87 First Call; revs $449.26 mln vs $438.97 mln Reuters consensus

08:46 MBIA, Ambac downgrades may cost investors, issuers $200 bln - Bloomberg

Bloomberg reports The crisis of confidence in bond insurers that bestow top credit ratings on debt sold by borrowers from the New York Yankees to Citigroup may cost investors as much as $200 bln. The AAA ratings of MBI, ABK and their five smaller competitors are being reviewed by Moody’s Investors Service and Fitch Ratings. Without guarantees, $2.4 trillion of bonds may fall in value and some issuers would get shut out of the capital mkts. The ratings cos said, FGIC in New York, and CIFG Guaranty of Hamilton, Bermuda, have a high or moderate chance of being told to add capital or forfeit their top status. Fitch and Moody’s said MBI has a low risk of a downgrade.
08:46 AIG American Intl: Lehman comments on $8 bln buyback (59.43 ) -Update-

Lehman believes that AIG’s aggressive $8 bln buyback reflects the stock’s attractive valuation at 1.5x BV and 8.9x firm’s 2008 EPS est. Furthermore, firm doubts that AIG would be able to increase its repurchase authorization by this magnitude unless mgmt is confident that its subprime exposure is contained, and the rating agencies were in agreement that this was a reasonable action. (Briefing.com note: AIG presents at 9:00am ET at the Credit Suisse conference.)
08:46 CPA prelim $0.89 vs $0.89 Reuters consensus; revs $264.6 mln vs $264.87 mln Reuters consensus

08:45 PRGN Paragon Shipping: Correction (20.69 )

That night we issued a comment that said PRGN had reported earnings, this was incorrect as we inadvertently used the wrong ticker. We have removed the original comment. PRGN is scheduled to report earnings tonight after the close.
08:45 ELE Endesa S.A. reports 9 month net income down 21.1% yr/yr to 1,979 mln euros; reports revs up 3.5% yr/yr to 16,042 mln euros. (53.60 )

08:44 AMAT Applied Materials: Guidance below expectations on all fronts - Caris (18.81 ) -Update-

Caris notes AMAT’s guidance on all metrics was disappointing. Given their relatively weaker outlook on the silicon business vs their peers, they think AMAT is losing share in their core markets. AMAT’s solar opportunity is exciting but will not add to earnings until 2009. Without a meaningful contribution from thin film solar in the near term, they think it will be difficult for AMAT to grow faster than their peers. Firm maintains their Average rating, as they think other equipment cos, such as ASML, have better leverage to the 2008 capital spending environment.
08:43 BSC Bear Stearns tgt cut to $109 from $120 at Punk Ziegel (103.27 ) -Update-

Punk Ziegel cuts their tgt on BSC to $109 from $120 saying the co is likely to record a loss in the fiscal fourth quarter. This loss will be driven by the $1.2 bln write down of selected asset backed collateralized debt obligations and sub prime whole loans. The firm says investors greeted this information favorably because the projected loss is somewhat lower than the street estimates of it had been. However, it is certainly not a positive development. Moreover, the firm says the co is projecting that it’s revs in 2008 will be lower than those achieved in 2007.
08:40 BSC Bear Stearns: Lehman comments on BSC writedown (103.27 ) -Update-

Lehman notes that following BSC’s announced $1.2 bln quarter-to-date losses in subprime and CDO assets, they are lowering their 4Q07 EPS est. to -$1.90. They note the co also provided detailed new disclosure on its net exposure to CDOs and subprime. Subsequent to the end of the 3Q07, firm notes that BSC has meaningfully reduced its exposure to at-risk CDO and subprime assets from $3.2 bln to $832 mln. While the largest contributor to the decline is the $1.2 bln valuation decline, the firm also meaningfully reduced its subprime whole loan, CDO warehouse and non-IG subprime securities exposure while at the same time increasing its A.B.S. C.D.S. negative hedge to $1.9 bln from $1.7 bln. They believe investors may take some comfort that BSC has aggressively reduced its remaining exposure to this at-risk asset class to just $832 mln, suggesting that future valuation marks, even in the context of a continued decline in various credit-related indices, would be at manageable levels.
08:40 AMAT Applied Materials: Patience required; update on quarterly results - FBR (18.81 ) -Update-

Friedman Billings is disappointed by another EPS cut following AMAT’s report and guidance. Firm believes the bulk of bad news is already behind them. With the stock not far from a trough level of $17, they find the risk/reward profile of 1:8 as a completing reason to accumulate here. Firm notes that, based on AMAT’s commentary, the mix of Silicon revs is est to be down to 60% in Jan ‘08, down from 78% in Jan ‘06 and 65% in Jan ‘07. With the Solar contribution expected to finally accelerate in Jan ‘09, they est that the mix of Silicon revs will further decline to 56%, with the mix of Solar increasing to an estimated 10%. Such diversification and an increased mix of high-growth Solar rev are expected to help with multiple expansion as well.
08:40 MDRX Allscripts downgraded to Outperform from Strong Buy at Raymond James (17.68 )

08:39 MFN Minefinders reports Q3; co’s goal of achieving commercial production at Dolores in Q2 2008 remains on track (12.39 )

Co reports Q3 results, but has no revenue except interest income until Dolores commences commercial production in Q2 2008. Co reports a Q3 loss per share of $0.27. Co says “We made significant progress in Q3 toward reaching our goal of achieving commercial production at Dolores in Q2 2008. One of those milestones was reached in Oct with the start of pre-commercial mining at Dolores.”
08:38 MTB M&T Bank: In its 8-K issues slide presentation for Merrill Lynch conference which is currently taking place (94.58 )

In its slide presentation, the co discloses it has a $132 mln CDO exposure in 3 separate securites and has unrealized losses of about $100 mln - pretax.
08:37 VRSN VeriSign: Transformation in progress; believe patience will be rewarded - Stifel (33.70 ) -Update-

Stifel notes VRSN’s analyst meeting largely lived up to expectations with mgmt providing visibility into transformation efforts and financial and growth profile of transformed VRSN. Firm notes VRSN will focus on core registry and SSL businesses along with emerging VIP business. Co will divest majority of telecom businesses, supply chain, and real-time Web. Firm notes mgmt is still evaluating MSS, messaging, and CDN. Firm notes transitions in 2008 likely to create some flux with financials and analyst ests as divestitures occur. Expect greater clarity following 4Q07 earnings call as VRSN likely to shift meaningful portion of divested businesses to discontinued operations and shift focus to continuing operations.
08:36 WIRES On The Wires

Advanced Battery Technologies (GBT) announces that it has successfully developed a polymer lithium-ion battery cell using lithium iron phosphate… Minefinders Corp (MFN) provides an update on construction and plans for its Dolores Mine in Mexico and reported financial results for Q3 ending Sep 30, 2007. MFNs’ President and CEO, Mark Bailey, said: “We made significant progress during the third quarter toward reaching our goal of achieving commercial production at Dolores in the second quarter of 2008. One of those milestones was reached in October with the start of pre-commercial mining at Dolores.”
08:36 SCANX Early pre-market gappers

Gapping Up: ADLS +26.3%, TSTC +25.9%, CHIC + 18.8%, LOCM +16.6%, NOVC +14.2% KLIC + 13.6%, STP + 11.0%, DIET + 10.7%, FUQI + 10.2%, WGOV + 10.0%, CMZ + 9.2%, PETM + 6.4%, KMX + 6.0%, NDN + 5.7%, GSI + 5.5%, AMLN +5.3%, CSIQ +4.8%, PLCE + 4.4%, FCSX + 4.4%, INOD + 3.6% , FSYS + 3.1%, BMY + 3.0%, OZM + 2.9%, IMCL + 2.8%, IACI + 2.7%, MOGN + 2.7%, GENZ + 2.5%, ANST + 2.4%, TTEK + 2.4%, TTWO + 2.1%, PBI + 2.1%, WBC + 1.9%, NUAN + 1.7%, GME + 1.7%, HD + 1.7%, IGTE + 1.6%, NTAP + 1.5%, PODD + 1.3%, PII + 1.2%, MER + 1.2% Gapping Down: NFI -39.0%, SINA -9.1%, HSOA -9.1%, DEEP -7.6%, JCP -5.2%, AMAT -4.3%, BHP -3.7%, BEAS -3.7%, THQI -3.3%, SWN -2.8%, MTSN -2.6%, AFCE -1.6%, WSM -0.9%, FRO -0.7%.
08:35 S&P futures vs fair value: -3.3. Nasdaq futures vs fair value: -0.3.

Futures are choppy following a number of economic reports released at 8:30 ET. October core CPI came in at 0.2%, in-line with expectations. NY Empire State Index was a better than expected 27.4, and the weekly initial jobless claims came in at 339K, compared to the expected reading of 325K.
08:34 HIBB Hibbett Sporting: 3Q07 EPS preview - Stifel (22.83 )

Stifel notes HIBB is scheduled to report 3Q07 results on Tuesday, Nov 20, after the markets close. Firm believes mgmt’s conservative tone regarding 3Q07 was warranted. Calendar comps were running up 6% through the first 19 days of the quarter, but benefited from later school start and tax-free holidays in Texas and Florida. Firm believes generally warm Oct weather in HIBB markets likely impacted sales of cooler weather transitional items. Slower apparel sales also have GM implications. Firm is hesitant to believe that stronger comps at enclosed malls relative to strip malls persisted throughout the period.
08:32 JNJ Johnson & Johnson announces the creation of two new business operating groups (66.89 )

Co announces a series of organizational changes, including the creation of a new strategy and growth organization to sharpen its focus on opportunities outside its traditional areas of interest and in the growing intersections of health care and the creation of two new business operating groups. A new Office of Strategy and Growth will identify opportunities for future growth that are distinct from those being pursued by the co’s existing businesses; a Surgical Care Group will focus on advancing technologies, solutions and services to enhance patient care in the surgical setting; and a Comprehensive Care Group will create portfolios to address some of the most chronic and pervasive conditions, such as metabolic disorders, through the convergence of technologies, products and services.
08:31 INSP InfoSpace announces $9.00 special dividend (17.87 )

Co announced that its Board of Directors has approved a special cash distribution of $9.00 per share, or approximately $300 mln. This follows the completion of the sale of its online directory business to Idearc Inc. (IAR) for $225 mln in cash. As previously announced, INSP has signed a definitive agreement to sell its mobile services business to Motricity for $135 mln in cash.
08:31 ADEP Adept Tech receives $5 mln Quattro Robot order (6.61 )

Co announces that it has received a $5 mln order for Adept Quattro robots from a major European machine builder. Under the terms of the order, over 100 Adept Quattro s650 robots will be deployed globally over a 12 month period in a proprietary high-speed, vision-guided handling application.
08:31 ATEA Astea Intl reports Q3 EPS of $0.25 vs $0.01 in yr ago period; revs rose 24% yr/yr to $7.85 mln (4.61 )

08:31 DKS Dick’s Sporting Goods: 3Q07 EPS preview - Stifel (29.97 )

Stifel notes DKS is scheduled to report 3Q07 results on Tuesday, Nov 20. Firm notes pre-split mgmt previously guided 3Q07 EPS in the $0.09-$0.12 range, includes $0.02 dilution from Golf Galaxy. Split-adjusted, firm sees 3Q07 guidance range of roughly $0.04-$0.06. They are lowering their 3Q07 EPS est from $0.06 to $0.05, a penny below consensus. Firm notes weather y/y could be real key to 3Q07 performance. Somewhat offsetting their concerns for weather’s impact, DKS clearly leads the sporting goods category in merchandising. They see continued improvements as potential offsets to more uncontrollable weather trends.
08:30 Authorities ‘support stock through-train’ - South China Morning Post

South China Morning Post reports a landmark scheme to let mainland residents invest directly in Hong Kong equities remained on track, Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong said. Mr Yam said all departments of the central govt supported the plan in principle and were in the process of drafting measures to control the risks the scheme entailed. “We’ve had very fruitful exchanges of views as to where the risks are in terms of these proposals and how the risks should be managed,” Mr Yam told reporters. He said there was no timetable for the launch of the direct investment program, dubbed “through train” in the media. “Now it’s only when the risks are identified, and proper risk management measures are put in place, before these proposals can be implemented. We’ve had very good discussions on that,” Mr Yam said.
08:30 ECONX Initial Claims 339K vs 320K consensus, prior revised to 319K from 317K

08:30 ECONX NY Empire State Index 27.4 vs 19.0 consensus

08:30 ECONX CPI y/y +3.5% vs +3.5% consensus

08:30 ECONX Core CPI y/y +2.2% vs +2.2% consensus

08:30 ECONX Core CPI m/m +0.2% vs +0.2% consensus

08:30 ECONX CPI m/m +0.3% vs +0.3% consensus

08:29 IMA Inverness Medical prices an 11.83 mln share common stock offering at $61.49/share (61.49 )

08:29 MI Marshall & Ilsley: Revising ests for Metavante spin and higher provisions; tgt cut to $38 - Stifel (32.07 )

Stifel notes on Nov 1 MI completed the spin-off of Metavante Technologies (MV). As a result, they are revising their bank-only 2007 EPS est to reflect a partial 4Q07 earnings contribution. Firm also updates their 2008 forecast to incorporate higher provisions, given the 30% linked quarter increase in non-performing assets reported in 3Q07, and further review of the Sep quarter 10-Q. Firm now expects earnings in the Dec quarter of $0.70 per diluted share, bringing full year 2007 EPS to $3.19, down 1% YoY. For 2008, they revised est is $2.68, down from a prior $3.03.
08:27 XFN Xfone reports Q3 EPS of $0.05 vs $0.02 in yr ago period; reports revs up 25.8% yr/yr to $12.1 mln with no estimates (3.42 )

08:27 GFI Gold Fields downgraded to Market Perform from Outperform at BMO Capital (18.38 )

08:27 BONDX Bond Watch: Free Ride

The market was given another boost overnight via risk aversion as equities were hit & bonds were bid. Barclay’s said it would take a less-than expected write down, but a widespread belief that the accumulated total of subprime losses thus far has just scratched the surface continues to plague stocks & prop up safe assets in the meantime. The 2-10-yr yield spread steepened to 77.5 as curve trade is favoring the wider bend with the short stuff bid on risk aversion & the long stuff a little less bid ahead of inflation data. Treasuries get to pour over CPI & some manufacturing data today. It won’t take too much of an upside miss on the former to spook the market & send prices south for the session. The manufacturing stuff is expected to be on the weak side so it’ll take outsized bad reports to fuel a meaningful bid. Beyond the data, trade will key off equity gyrations & technical boundaries that are pinning prices within pretty tight ranges. The buck is better on the euro & watching yen as carry trade is shed. Gold has lost some luster, falling back to now trade 801.81 (-10.14) in corrective action while crude weathered a pipeline attack & backed off to a still pumped 93.89 (-0.20). Data reaction will be a toss up with the inflation numbers likely in line (but the market will be hyped up for yoy prints) CPI, initial jobless claims & NY Empire index (8:30) followed by Philly Fed (12) with the sentiment numbers getting added weight in an environment of concern over “investors” expectations. Fed-speak has Evans & KC’s Hoenig hitting late. The euro is at 1.4643 & the yen is at 110.6700 while the 10-yr is +03/32 yielding 4.236%. For more bond & economic commentary click here.
08:26 AMAT Applied Materials: Near-term capex uncertainity reigns but long-term outperformance still intact - Stifel (18.81 )

Stifel notes that on Wed after the market close, AMAT reported 4Q07 earnings results of $2.37 bln in rev and pro-forma EPS of $0.35, excluding options ($0.34, including options), below their rev forecast ($2.4 bn), but above their EPS est ($0.31). While firm is clearly disappointed with the outlook mgmt provided, they believe much of it is consistent with the current cautious environment that chipmakers are taking in terms of 2008 capex plans. Firm also believes that guidance was skewed somewhat by a large order that came into the Oct quarter vs the Jan period. Firm believes that the co’s long-term strategic positioning remains firmly intact and if anything, they are seeing some of the benefits already today.
08:26 AMGN Amgen: Upgrade details (53.63 )

As mentioned at 6:31 Lehman upgraded AMGN to Overweight from Equal Weight and raised their tgt to $72 from $56 following new transfusion data and likely N.C.D reconsideration and ahead of detailed phase III data for denosumab in patients with cancer related bone disease. The firm says while evidence suggesting increasing transfusion burden from N.C.D limitations may not be overwhelming, they believe that C.M.S is very sensitive to transfusion issues and will open a reconsideration of the N.C.D on this new data.
08:26 AMD Advanced Micro may prolong delay of newest chip, customers say - Bloomberg (12.28 ) -Update-

Bloomberg reports AMD is late delivering its newest chip geared for servers, helping INTC extend its lead in the mkt, customers in Taiwan said. “Barcelona” chips, which Advanced Micro said it would begin shipping on Sept. 10, may be delivered next month, officials at Taiwan’s Acer, Asustek Computer and Elitegroup Computer Systems said. Advanced Micro last month said output was slower than expected.
08:24 MSFT Microsoft: Vista in danger of being bypassed by businesses - Infoworld.com (33.93 )

Infoworld.com reports that it will be one year that Windows Vista has been available to businesses on Nov 30, yet many cos still are waiting until the release of Vista’s first service pack to upgrade. But with MSFT planning to release the next version of Windows, code-named Windows 7, in late 2009 or 2010, there remains a strong possibility that cos might skip over Vista altogether in favor of the next release of Windows. MSFT has said it will release a roll-up of updates for Vista, Windows Vista S.P. 1, in the first qtr of next year, the same time frame in which it will release Windows Server 2008. MSFT is hoping businesses upgrade to both products simultaneously, and it’s expected that many cos that have factored Vista into their enterprise planning budgets will do just that. Nash (vice president of product management for Windows) said that MSFT signed the highest number of enterprise licenses for Windows desktop ever at the end of FY07, a fact he said bodes well for Vista enterprise adoption. “They wouldn’t be licensing Windows desktop if they didn’t have the intent to deploy Vista,” he said. But despite MSFT’s rosy view on the future of business adoption of Vista, users of the O.S. said there are still enough problems with it that some cos may opt to wait until Windows 7 to update their worker desktops. MSFT has said little about Windows 7 except it’s in the works and should be out about three years after Vista, which was released to consumers in Jan following its business rollout.
08:24 ERIC LM Ericsson: BSNL may give entire GSM supply order to Ericsson, official says - DJ (29.69 )

DJ reports Indian state-run telecommunications service provider Bharat Sanchar Nigam may give an entire supply contract for telecommunications equipment and services to ERIC as the other bidder for the contract, Nokia Siemens Networks, still hasn’t accepted BSNL’s order, a senior BSNL official said Thursday. “They (Nokia Siemens) had to give us an ‘order acceptance’ by yesterday (Wednesday), but haven’t done it so far. If they don’t accept the order, we will go ahead and place it with Ericsson,” the official, who didn’t wish to be named, told DJ.
08:22 RDS.A Royal Dutch Shell orders shake-up of Nigerian units - FT (80.29 )

FT reports the co is to reorganize its Nigerian units to save costs after oil production cuts due to militant attacks and shortfalls in govt funding. Basil Omiyi, Shell’s managing director in Nigeria, said: “We are operating in an extremely difficult environment where levels of production have been severely curtailed by the security situation for some time, where there is significant upward pressure on costs and where funding issues are having an impact on our operations.” The company has said it will increase efficiency by unifying the production, development, and projects divisions of its three separate business units operating in Africa’s top oil producer.
08:21 II Ivivi Tech: Partnerships to drive value for II; reports 2QFY08 results - Brean Murray (6.06 )

Brean Murray believes Allergan will commence marketing and sales efforts of the Torino II this quarter. Furthermore, mgmt disclosed that the co is in partnership discussions, which they assume will be for the sales and marketing of II’s products in the home healthcare and OTC market. Firm anticipate II will announce a marketing partner by the end of 1QCY08, which they believe will markedly increase sales given how little II is now doing to promote sales in this market segment.
08:20 CNBC commentator notes FASB 157 rule goes into effect today, could spur more worries about write-downs

Notes that part of the rule was delayed until next year.
08:18 NTAP Network Appliance: Upgrade details (26.61 ) -Update-

As mentioned at 6:49 Bear Stearns upgraded NTAP to Peer Perform from Underperform saying while they still have concerns (i.e., outlook could be overly optimistic amidst a weakening US enterprise), the firm is upgrading given better-than-expected results/outlook and more balanced risk/reward on their higher numbers. The firm says despite solid results, NTAP’s “CSCO-like” commentary on weakness in US enterprise, with indications that it may spread to UK, still gives them pause.
08:18 PSS Collective Brands: Recent weakness at Payless and Stride Rite; Lowering Our Estimates - Brean Murray (17.52 )

Brean Murray believes PSS’s Payless chain likely suffered from weak consumer demand during the quarter, especially for its seasonal offerings. In addition, the Stride Rite operation appears to have faced some demand challenges as well (particularly Keds). As a result, they are lowering their sales and EPS ests for Collective Brands. The firm now trades at 9.5x our 2008 EPS estimate, or below the averages for both footwear retailers (10.7x) and footwear brands (13.9x).
08:17 HSOA Home Solutions rating and price target suspended after delays Q3 filing - Rodman & Renshaw (1.85 )

Rodman & Renshaw reviews its rating on HSOA after the co announced it will not be filing its Q3 FY07 10Q within the required time period (firm says likely to be restatements from prior quarters). They note that macro driven concerns regarding the state of the construction industry, liquidity issues, related party transactions, cash-less earnings, questions regarding the legitimacy of the announced backlog, an on going shareholder lawsuit, an informal SEC investigation; all contribute to the emotional soap opera that is HSOA. The firm is not dropping coverage but will suspend its rating until it has a fundamental basis to build estimates, formulate a price target and select an appropriate rating.
08:16 ECONX CPI data is coming out at 8:30AM ET

CPI Preview
08:16 WIRES On The Wires

CyberSource (CYBS) announces that its Authorize.Net service has achieved another merchant milestone, surpassing 200K active merchants on that payment service… Petrohawk Energy (HK) announces plans to acquire a majority working interest in approx 8,000 additional acres in Lincoln Parish, LA… Genta (GNTA) releases findings from the initial clinical dosing of G4544, the co’s proprietary small molecule that is intended as a treatment for diseases associated with accelerated bone loss… Rural/Metro (RURL) announces it has been awarded a new contract to become a preferred provider of non-emergency ambulance services to the TriStar Health System based in Nashville, TN. The one-year contract is estimated to generate annual net revenue of approx $2.5 mln… Cabot Oil & Gas (COG) announces additional horizontal drilling success at its County Line project in east Texas, along with news on horizontal drilling from its shale program in West Virginia. This well reached a total measured depth of 12,860 feet with a 5,400-foot lateral in the James Lime formation… Credo Petroleum (CRED) updates its results of fiscal 2007 drilling activities. James Huffman, President, stated, “Since our last report, we have drilled 10 wells, of which three are producing and six are awaiting completion for production. Drilling is underway on two additional wells, and 13 more wells are scheduled for drilling”… Saba Software (SABA) and Sify Technologies (SIFY) announce that the cos will work together to deliver a learning platform and services to India… NTR Acquisition (NTQ), having previously announced its proposed acquisition of Kern Oil & Refining, announces that it has agreed to retain Foster Wheeler USA to perform initial engineering work on projects NTQ plans to pursue at Kern.
08:13 JBX Jack In The Box: Expect moderate SSS and higher food costs - Morgan Joseph (27.03 )

Morgan Joseph notes they while the co guided to higher 2007 comps last quarter, F4Q EPS expectations were somewhat tempered, and, in their view, lackluster compared to the high single-digit growth reported in the previous three quarters. In addition, the co expects higher beef costs to continue throughout the rest of the year. Accordingly, firm’s F4Q07 rev, operating profit margin, and reported EPS ests are $695.4 mln, 16.9%, and $0.46, respectively. Given the tempered growth momentum and their ongoing view that as the smallest hamburger player, JBX is not as well positioned as others in the QSR segment, thus they maintain their Hold rating.
08:10 SBUX Starbucks: Has it built too many stores? - WSJ (24.25 )

WSJ reports for years, the co has been able to throw up new stores, sometimes placing them across the street from each other, while sales at older stores still climbed at break-neck speed. But in the past year, the growth in Starbucks same-store sales revenue and number of transactions in the U.S. has slowed. When Starbucks reports earnings today, investors will be closely watching to see if growth in the average number of transactions per store, which essentially measures customer traffic, declines for the first time since Starbucks began disclosing the number three years ago. “The … underlying fear is that Starbucks is finally seeing the signs of saturation in the U.S.,” says John Glass, an analyst at CIBC World Markets who follows the stock. More broadly, Starbucks’s recent attempts at expanding its brand have had mixed results. Some analysts say the chain has fallen behind on creating enticing new beverages and its breakfast sandwiches have created little excitement.
08:08 NTAP Network Appliance upgraded to Buy at Caris- tgt $40 (26.61 ) -Update-

Caris upgrades NTAP to Buy from Above Average and raises their tgt to $40 from $37 based on strong revenue results, and good guidance. The firm says bears will point to three factors (pricing, weak D.R growth, and concerns about the US and UK financial sector), but they would view weakness as a buying opportunity as the incremental pricing aggressiveness should be modest (since G.Ms are guided to decline by only 100-150bp Q/Q), the strong guidance suggests that the pipeline is strong, and weakness in the financial sector is well known.
08:08 CVX Chevron: Lower refininf margins and rising costs depress earnings - Oppenheimer (86.15 )

Oppenheimer remains neutral on CVX shares as they think oil prices are inflated by speculation about supply disruption in the event of military strikes against Iran. Firm does not expect any supply disruption as they believe Iran needs oil export rev more than the world needs its oil. Firm expects refining margins to decline on weak demand and increased supply once the idled capacity is restored in early 2008. CVX has one of the richest upstream portfolios of new projects in the peer group that, they believe, if completed on time and within budget, could significantly boost its production, reserve, earnings, cash flow, and stock valuation.
08:06 PKT Procera Networks reports Q3 revs rose 300% YoY to $1.65 mln (1.92 )

08:04 KTEC Key Technology reports Q4 EPS of $0.42 vs $0.35 single estimate; reports revs up 31.3% yr/yr to $31.7 mln vs $27.7 mln single estimate (27.22 )

08:04 PTRY Pantry reports Q4 (Sep) results, misses on revs (25.30 )

Reports Q4 (Sep) earnings of $0.25 per share, includes $1.8 mln charge, may not be comparable to the Reuters Estimates consensus of $0.35; revenues rose 19.9% year/year to $2.02 bln vs the $2.05 bln consensus.
08:04 TMM Grupo TMM announces that Javier Segovia, President, has decided to leave the co (2.56 )

Co announces that Javier Segovia, who has served as president of Grupo TMM, has decided to leave the co to pursue outside interests effective Dec 1, 2007. Jose Serrano, chairman of Grupo TMM, will serve as president of the co until a replacement for Mr. Segovia is appointed.
08:03 IMOS Chipmos Technology reports October 2007 revenue of $65.7 mln (5.31 )

Co announces that rev for the month of October 2007 was NT$2,129.2 million or US$65.7 million, an increase of 4.4% from the month of September 2007 and an increase of 8.9% from the same period in 2006.
08:03 BONDX Economic Calendar

CPI, initial jobless claims & NY Empire index at 8:30 followed by crude inventories at 10:30 & Philly Fed at 12.
08:03 EFJI EFJ announces Massoud Safavi as Chief Operating Officer; announces new organizational structure (3.04 )

Co announces the appointment of Massoud Safavi to the new position of COO. Additionally, co states, “..We determined that our organizational structure needed to change, in order to capitalize on the synergies in our technologies and people and to expand our sales opportunities…” The corporate team will include technology, finance and accounting, legal, government affairs and corporate development and will be led by Jalbert, who said the overall anticipated cost savings from the organizational and other changes will be in the range of $3 - $5 mln on an annualized basis beginning in 2008.
08:03 MDVN Medivation: Expecting U.S. trials to be a far higher hurdle than the Russian trial - Brean Murray (19.79 )

Brean Murray believes that MDVN’s Dimebon has little chance of success in U.S. trials given that trials here would either 1) require background therapy, or 2) would treat patients that failed AChEase inhibitors, failed to tolerate AChEase inhibitors, or were taking Namenda. They do not believe that Dimebon’s results in treatment-nave Russian patients could ever accurately predict how the drug will perform in U.S. trials enrolling patients as firm have described. They note that the Phase 2 results will most likely be published sometime in the near future, due to an 8-K filed by the co, but they also note the recent equity line drawdowns totaling more than $21 mln and are puzzled as to why the co would sell stock right before the publication of results that it believes to be so meaningful.
08:02 Select airlines downgraded at Merrill

Merrill downgrades ExpressJet (XJT), SkyWest (SKYW), and Republic Airways (RJET) to Neutral from Buy. The firm also downgrades Mesa Air (MESA) to Sell from Neutral.
08:02 ASIA AsiaInfo announces contract with Jiangsu Netcom, a subsidiary of China Netcom, to expand the carrier’s CRM system (11.40 )

Co announces that it has signed a contract with Jiangsu Netcom, a subsidiary of China Netcom, to expand the carrier’s Customer Relationship Management.
08:02 PTRY prelim $0.25, includes $1.8 mln chargs, does not comapre to $0.35 Reuters consensus; revs $2 bln vs $2.05 bln Reuters consensus

08:02 ITW Illinois Tool reports operating revs three months ending Oct 31; reaffirms Q4 EPS (55.39 )

Co reports operating revs for three months ending Oct 31 of +15.6%. Co reaffirms Q4 EPS of $0.86-0.90 vs $0.88 consensus.
08:01 GORX GeoPharma issues FY08 and FY09 revenue guidance (3.15 )

Co sees FY08 revs of $63-65 mln. Co believes that revs in excess of $100 mln are possible for FY09. There are no estimates for GORX.
08:01 FCSX prelim $0.42 vs $0.23 Reuters consensus, $0.21 First Call; revs $75.6 mln vs $61.75 mln Reuters consensus

08:01 BRCM Broadcom announces new share repurchase program for up to $1 bln of common stock (28.66 ) -Update-

08:00 GRNB Green Bankshares initiated with a Hold at Stifel (30.31 )

08:00 S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -9.8.

Futures point to a lower start. Applied Materials (AMAT) provided first quarter revenue and EPS guidance that was noticeably below current consensus estimates. Barclays (BCS) announced a $2.7 billion write-down and Kraft (KFT) confirmed that it will merge its Post Cereals business with Ralcorp Holdings (RAH) in a deal worth about $2.6 billion. CPI for October will be released at 8:30 ET.
08:00 AMZN Amazon.com upgraded to Buy at Stifel- tgt $91 (78.51 )

Stifel upgrades AMZN to Buy from Sell with a $91 tgt noting Amazon.com shares have pulled back in the past several weeks, as share “renters” have exited the investment. The firm says their 5 yr tgt is $155 and they highlight 5 drivers for excess growth over the next 5 years based on Amazon Prime, International Markets, Long-term margin expansion, Web Services and Other Growth, and eCommerce sector growth.
07:58 BRCM Broadcom: Caris remains buyers on recent weakness (28.66 )

Caris reiterates their Buy rating and $44 tgt, and recommend that investors use recent weakness to build positions in BRCM. Expectations were clearly high ahead of recent Sept Q results, and the stock was punished for what was perceived as light guidance and a lack of opex control. Some investors have grown frustrated with the delayed return on a large R&D investment, and the recent announcement of a single-chip 3G cellular solution from competitor QCOM has lead some to question BRCM’s competitive advantage. However, their checks suggest that BRCM is well-positioned across multiple end markets in terms of both design momentum and operational execution, and they expect rev and earnings to grow significantly faster than peers over the next several years.
07:56 GNPI Genius Products: Trends remain strong, but guidance comes out conservative; lowering FY08 ests to baseline assumptions - Merriman (1.90 )

Merriman notes GNPI reported net revs of $93.4 mln, which came in below their $123.6 mln est (and consensus of $117.6 mln) due to 1) the timing of Weinstein releases (mainly “1408″) that had early 4Q07 street dates and 2) a higher percentage of non-Weinstein revenues that have higher return/discount rates. Firm lowers their ests to bring their model more in line with the co’s baseline/organic operations as opposed to baking in any upside rev/margin scenarios. Firm’s FY07 and FY08 net rev ests are lowered to $579 mln and $776 mln from $611 mln and $878 mln, while their EPS ests (at the C-Corp level) are lowered to ($0.05) and $0.11 from $0.09 and $0.31.
07:55 PBI Pitney Bowes reaffirms Q4, issues Y08 guidance; announces strategic alternatives; increases share repurchase to $500 mln (37.84 )

Co reaffirms Q4 EPS from continuing operations of $0.67-0.71, ex-items, vs $0.69 consensus; reaffirms Q4 revs growth of 6-9%. Co sees Y08 EPS from continuing operations of $2.80-2.90, ex-items, vs $2.91 consensus; sees revs up 6-9%. Co has decided to explore strategic alternatives to determine the best course of action for its U.S. Management Services business. Board of Directors has increased the share repurchase authorization to $500 mln. Co plans to complete the repurchases within 6 months. Co is initiating a program to lower its cost structure, accelerate efforts to improve operational efficiencies, and transition its product line. In connection with these transition initiatives, co expects to record charges of $300-$400 mln.
07:54 BEAS BEA Systems: Ellison warns BEA on possible future bid - FT (17.40 )

FT reports any future ORCL takeover bid for BEA Systems will be for less than the $7 bln it offered last month, Larry Ellison, Oracle’s CEO, warned on Wednesday night. The blunt threat, issued at Oracle’s annual financial analyst meeting in San Francisco, marked a characteristically sharp public response in what is shaping up to become the latest in a string of drawn-out takeover sagas mounted by Mr Ellison. “If we made another offer [for BEA], the price would be lower,” Mr Ellison said at Oracle’s annual analyst meeting on Wednesday. Pointing to the recent retreat in technology stocks, he added: “Clearly the $17 price seems too high now.” While he did not reveal whether Oracle would renew its approach to BEA, the Oracle CEO said: “It looks like noone [else] is going to buy BEA. We were the only buyer then.”
07:54 NYX NYSE Euronext: Jefferies comments on Thain departure, says transition will likely temporarily delay any major transaction (86.74 )

Jefferies notes that despite John Thain’s departure, they believe NYX is well-positioned to continue to expand its global footprint and be a benefactor of the ongoing consolidation trend amongst exchanges. They think the CEO transition will likely temporarily delay any major transaction, but not alter the strategic plan that has been established. The firm expects NYX to continue its strategy of growing and diversifying through investments and/or acquisitions on a global scale. An acquisition in the U.S. futures business has been discussed by NYX for months and they do not anticipate this to change; however a potential transaction may be delayed by the aforementioned changes in management.
07:53 JCP JC Penney beats by $0.02, misses on revs; guides Q4 EPS below consensus (46.73 )

Reports Q3 (Oct) earnings of $1.03 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $1.01; revenues fell 1.1% year/year to $4.73 bln vs the $4.78 bln consensus. Co issues downside guidance for Q4, sees EPS of $1.65-1.80 vs. $2.03 consensus, compared to previous guidance of $2.41. Co sees total department store sales flat to up slightly, with comparable department store sales to decrease in the low-single digits.
07:51 JCP sees Q4 $1.65-1.80 vs $2.03 Reuters consensus

07:50 JCP prelim $1.03 vs $1.01 Reuters consensus; revs $4.73 bln vs $4.78 bln Reuters consensus

07:49 TMX Telefonos de Mex upgraded to Buy from Hold at Citigroup (33.86 )

07:48 CROX Crocs: Strong demand and attractive valuation equals a buying opportunity - Nollenberger (39.85 )

Nollenberger believes that CROX has created a category in footwear and has outgrown its fad stage. Firm believes the velocity of the brand remains outstanding. They believe CROX’s hybrid shoe continues to reinvent itself and has become a household staple for many consumers. Given the demand for the product and its continued opportunity in the marketplace, they believe Crocs has room for continued earnings growth.
07:47 PBI increases share repurchase to $500 mln

07:47 PBI sees Y08 rev growth of 6-9%

07:47 PBI sees Y08 EPS of $2.80-2.90, ex-items, vs $2.91 consensus

07:46 FCSX FCStone announces CFO succession plan (38.31 )

Co announces that Robert Johnson, Executive Vice President and Chief Financial Officer, will retire from his role as Executive Vice President and Chief Financial Officer, effective with the annual meeting on January 10, 2008. In accordance with the co’s succession planning, Pete Anderson, the co’s Chief Executive Officer, also announced that William Dunaway, current Executive Vice President and Treasurer, will assume the role of CFO.
07:46 APU AmeriGas Partners downgraded to Market Perform from Outpeform at Wachovia (36.50 )

07:46 GWW WW Grainger upgraded to Outperform from Market Perform at Morgan Keegan (88.36 )

07:45 PBI reaffirms Q4

07:45 ARCC Ares Capital upgraded to Outperform from Market Perform at Wachovia (15.44 )

07:44 Select energy stocks initiated at Wachovia

Wachovia initiates CLECO Corp (CNL) and Northeast Utilities (NU) with Outperforms. The firm also initiates Con Edison (ED) and NSTAR (NST) with Market Performs.
07:44 STI SunTrust Banks files slideshow in 8-K ahead of today’s presentation; experienced only a modest impact from additional deterioration in market values in Oct (70.90 )

STI issues slideshow in 8-K ahead of today’s presentation at the Merrill Lynch Banking & Financial Services Conference (11:20 a.m. E.T.). The co does not expect a material near-term recovery of the losses associated with the mark-to-market adjustments realized in 3Q 2007. Through mid-year 2008, co anticipates net charge-offs will be in the 35-45 basis point range assuming no further material deterioration in the economy. Co says they experienced only a modest impact on financial results from additional deterioration in market values in October.
07:43 Financial Guarantors: Raising equity capital levels by 10% would modestly dilute returns; raising capital levels by 20% or more would be costly - Calyon

Calyon notes that their note yesterday suggesting some of the financial guarantors would be well served to use excess capital to initiate a share repurchase program, they heard from a retired financial guaranty executive who agreed that this strategy is likely being discussed at the board level. However, he also suggested they take a look at how the numbers would look if these cos raised some capital, regardless of need. Firm’s analysis suggests that raising equity capital levels by 10% would modestly dilute returns, while raising capital levels by 20% or more would be costly. However, a 5% increase in capital would not change the numbers as it can be satisfied by the current level of excess capital at all four cos that they follow.
07:43 GST Gastar Exploration receives demand under ”Look Back” payment provision (1.52 )

Co announces that it has received a demand letter from GeoStar claiming that GeoStar is entitled to be issued approximately 1.69 bln GST common shares under a “Look Back” provision in two Purchase and Sale Agreements entered into by GeoStar and GST in 2005 conveying interests in certain Texas properties from GeoStar to GST. Under the PSAs, GST paid to GeoStar an agreed $43.5 mln in consideration for the properties.
07:43 MRK Merck: Vioxx deal may cause pain - Latimes.com (57.30 )

Latimes.com reports that about 47,000 plaintiffs have until Mar 1 to decide whether to take immediate payouts estimated to range from $50K to $1.5 mln. But some little-noticed provisions of the deal are controversial and threaten to derail the settlement. The highly unusual agreement not only requires 85% of plaintiffs to agree before it can be finalized but also might unduly force some claimants to settle or risk losing their lawyer. That’s because the deal includes highly unusual restrictions on plaintiffs’ lawyers. The settlement requires them to recommend the deal to all of their clients or none. In addition, lawyers must stop representing any clients who turn it down as long as they don’t violate ethics rules. MRK requested the all-or-nothing conditions because it feared lawyers would settle weaker cases and cherry-pick stronger ones for trial and possible higher payouts. Some legal experts, however, are worried that the unusual legal maneuvers might provide attorneys a financial incentive to urge clients to go along with the settlement. Experts say it’s too soon to know how many plaintiffs will ultimately sign on to the settlement.
07:39 TLEO Taleo: Benson departure not indicative of underlying product issues - CIBC (27.12 )

CIBC notes after the close TLEO announced that Brad Benson, EVP of Products and Technology and Chief Technology Officer, has decided to leave the co. According mgmt, Benson is leaving the co for personal reasons and is not departing due to any product-related issues. Mgmt stated that if there was a product issue that they would have disclosed that concurrent with this announcement. Additionally, Benson will maintain a consulting agreement with Taleo and is under a stringent non-compete so he will not be showing up at a competitor anytime soon. For, also believes the co has a strong bench and, if necessary, should be able to attract a top-tier manager to fill Benson’s shoes. They would be buyers of the stock on any weakness as a result of this announcement.
07:38 SKM SK Telecom tops Macquarie as bidder for Hanarotelecom - WSJ (33.03 )

WSJ reports the telecom, has been named the preferred bidder for a controlling 38.9% stake in broadband-service provider Hanarotelecom, bid adviser Goldman Sachs said yesterday. SK Telecom’s offer price wasn’t disclosed, but local media have speculated that it may have tried to buy the stake at 12,500 won ($13.60) a share, valuing the total deal at 1.14 trillion won ($1.24 bln).
07:37 GVP GSE Systems tgt raised to $11 from $8 at Roth Capital (9.92 )

Roth Capital raises their tgt on GVP to $11 from $8 following earnings. The firm believes the construction of new nuclear plants presents a substantial opportunity, with the Westinghouse projects in China reflecting the start of the trend. GVP has begun development on the Sanmen project, with additional phases expected to be awarded in the near-term.
07:37 VDM van der Moolen reports Q307 results; plans to terminates US specialist activities and delist ADS from NYSE (5.24 )

Reports Q3 revenues increased 13.0% year/year to EUR 37.4 mln. Reports a loss of EUR 0.12. Furthermore, co plans to terminate its US specialist activities and delist ADS from NYSE.
07:36 WIRES On The Wires

Teton Energy (TEC) announces that preliminary production testing has recently been completed on the Solberg 32-2 well, located within the co’s approximate 87K gross acre Goliath project in Williams County, ND. The Solberg 32-2 well tested at a flow rate of approx 2.1 mln cubic feet of natural gas and 408 barrels of condensate per day at an average flowing tubing pressure of 2,500 psi on a 13/64ths choke… Fonar(FONR) reports that in the proceedings of the 22nd Annual Meeting of the North American Spine Society 1S-163S, Oct 23-27, 2007, Austin, Texas), the University of California, Los Angeles School of Medicine presented four scientific papers comparing the visualization of spine pathology by Dynamic MRI to images obtained by Static MRI… iLinc Communications (ILC) announces that more than two mln people have now experienced an iLinc Web conference since it began its hosting service in 2004… Emcor Group (EME) announces that it has acquired Performance Mechanical, a privately held industrial mechanical construction and maintenance co. Terms of the transaction were not disclosed. P.M.I. has annual revs of approx $90 mln.
07:36 BSC Bear Stearns long-term counterparty credit rating lowered at S&P (103.27 )

Standard & Poor’s Ratings Services said today that it lowered its long-term counterparty credit rating on BSC to ‘A’ from ‘A+’. At the same time, the ‘A-1′ short-term rating was affirmed. The outlook is negative. “The rating action follows Bear Stearns’ announcement that it would take a fourth-quarter writedown on its CDO and subprime exposure of $1.2 bln, which will result in the co’s first quarterly loss in its history,” said Standard & Poor’s credit analyst Diane Hinton. We consider the writedown to be comparatively less than that of peers’, particularly given BSC’s substantial business concentration in the U.S. mortgage market. However, the expected net loss brings to light the extent to which the co is concentrated in fixed income businesses, which we believe is an underlying structural weakness in revenue generation. While there remains potential for further writedowns, given continued dislocation in the mortgage market, we consider the company’s remaining CDO and subprime exposure ($884 mln, net of hedges) to be manageable. Nevertheless, additional writedowns could further impair the company’s future earnings performance particularly in light of Bear Stearns’ relatively greater revenue reliance on fixed income markets, which are currently experiencing a general slowdown.
07:36 ETFC E*TRADE: Bids or offers for E*Trade? - WSJ (5.54 )

WSJ reports Mitch Caplan, CEO of the co, is now faced with two main options as his co struggles to regain its footing, according to people familiar with the matter. In recent days, these people say, the co has received calls from various parties suggesting a cash infusion into E*Trade similar to the $2 bln investment that Bank of America recently made in Countrywide Financial. At the same time, Mr. Caplan has been weighing the pros and cons of selling E*Trade to a rival, these people say. A cash infusion has some benefits. The firm’s stock-market cap has sunk to $2.28 bln from $10.9 bln in recent days, and a cash infusion would help restore investor confidence. As well, the stock would likely rise with such a vote of confidence. But diluting the equity base would be unpopular with shareholders who have already seen their investment in E*Trade take a considerable wallop. Mr. Caplan could also sell the co, but that option is fraught with issues. The most likely potential buyer is TD Ameritrade. People familiar with the matter say that Ameritrade is keeping a close eye on E*Trade, and that its board in recent weeks has talked about a possible bid. Another option: E*Trade could hive off the bank into a separate holding vehicle.
07:32 SINA Sina: Results in-line, but still impressive growth - Susquehanna (49.50 ) -Update-

07:31 NUAN Nuance Communications beats by $0.03, beats on revs (20.23 )

Reports Q4 (Sep) earnings of $0.18 per share, excluding non-recurring items, $0.03 better than the Reuters Estimates consensus of $0.15; revenues rose 40.4% year/year to $179.9 mln vs the $173.2 mln consensus.
07:30 DYAX Dyax announces plans for retirement of Steve Galliker as Exec VP and Chief Financial Officer (4.04 )

Co announces that Stephen Galliker has informed the co of his intention to retire. Mr. Galliker served as Dyax’s Executive Vice President and Chief Financial Officer and will remain with the co to assist with the search for a new Chief Financial Officer, whom Dyax expects to hire by the end of the first quarter of 2008.
07:30 NUAN prelim $0.18 vs $0.15 Reuters consensus; revs $179.9 mln vs $173.17 mln Reuters consensus

07:30 PRICE Filings, Offerings, Pricings and IPOs

Filings: Verenium (VRNM) files for a $150 mln mixed shelf offering; prospectus also covers 3 mln shares of common stock being offered by selling shareholders… Fidelity National (FNF) files for a mixed shelf offering… Pros Holdings (PRO) files for a 5 mln share common stock; 65k by the co and 4.935 mln by selling shareholders… Pricings: Calumet Specialty Products (CLMT 36.9 prices 2.8 mln common unit offering at $36.98/unit… Aegean Marine Petrol (ANW 38.23) prices a 6.75 mln share common stock offering at $37.75/share… Willbros Group (WG 35.66) prices a 6.87 mln share common stock offering at $34/share… IPOs: EnteroMedics (ETRM), a development stage medical device co, prices its 5 mln share IPO at $8/share, at the bottom end of the $8-$9 forecast range… Virtual Radiologic (VRAD), a provider of remote diagnostic image interpretation, or teleradiology, prices its 4 mln share IPO at $17/share, right in the middle of the $16-$18 forecast range… MSCI Inc (MXB), a provider of investment decision support tools to investment institutions, prices its 14 mln share IPO at $18/share.
07:30 PKTR Packeteer initiated with a Sell at Brean Murray- tgt $6 (7.20 )

Brean Murray initiates PKTR with a Sell and a $6 tgt saying recent quarterly results have demonstrated stability in the business—yet the lack of guidance, coupled with mgmt’s decision to increase operating expenses at the expense of profitability—give the firm pause and affirms their belief that competition is intensifying. The firm views PKTR as facing several headwinds, which could negatively impact revenue and earnings over the next 12 months: increasing opex, which will limit meaningful earnings growth; a more protracted ramp in iShaper; declining demand for its standalone PacketShaper product; and increased competition from more networking OEMs (Cisco and Juniper), which will ultimately incorporate WAN accelerating into their switching products.
07:29 ASTI Ascent Solar: Pilot line coming together; low cost CIGS thin-flim commercialization looks promising - Merriman (17.36 )

Merriman notes ASTI reported 3Q07 rev of $0.3 mln and a net loss of ($0.19) vs. $0.0 mln and ($0.30) in the year-ago period and compared to their ests of $0.3 mln and ($0.16), respectively. Ascent’s R&D expenses were $0.76 mln in 3Q07 compared to $0.1 mln in 3Q06. Firm notes the Y/Y increase is due to the government contracts assigned by ITN Energy Services, as well as expenses relating to optimization of the co’s manufacturing processes. Firm believes the co could become a low cost leader with a highly differentiated solar PV product as it proves its large scale production process over the next several quarters.
07:29 RAH Ralcorp Holdings misses by $0.03, beats on revs; issues Y08 outlook (55.47 )

Reports Q4 (Sep) earnings of $0.59 per share, excluding non-recurring items, $0.03 worse than the Reuters Estimates consensus of $0.62; revenues rose 25.4% year/year to $608.2 mln vs the $588.6 mln consensus. For Y08, co sees yr/yr increase in unit costs for ingredients, packaging, and transportation to be more than $75 mln. Co will need to take additional actions including further pricing changes and spending reductions. To the extent mitigating efforts trail or fall short of the impact of cost increases, results of operations will be negatively affected, as is expected to be the case in Q1. Any near-term shortfall will be recovered during the remainder of Y08 so that EPS, excluding the ex-items, will be up approx 5% vs $3.27 in Y07.
07:28 MBRK MiddleBrook Pharma: Awaiting an FDA decision on Amoxicillin PULSYS; 3Q07 Results - Merriman (1.24 )

Merriman notes MBRK reported Q3 results last night. Firm notes co awaits an FDA decision on Amoxicillin PULSYS by Jan 23, 2008 and continues to explore strategic alternatives. Firm is reiterating their Buy rating and believes that MBRK’s current price does not adequately account for the potential NDA approval of Amoxicillin PULSYS, the potential launch of Amoxicillin PULSYS (as early as Feb 2008E), potential partnerships, or the possible sale of the co.
07:27 GIGM GigaMedia tgt raised to $25 from $22 at Roth Capital (20.75 )

Roth Capital raises their tgt on GIGM to $25 from $22 following 3Q07 results that came in slightly ahead of their revenue estimate and in line with their EPS estimate after adjusting for non-recurring items. The firm believes the recent pull back in shares has created a buying opportunity as they continue to believe shares are undervalued relative to the company’s underlying fundamentals.
07:27 CHIC Charlotte Russe: Shares up on positive comments; valuation still cheap but remain in sidelines - FBR (14.29 )

Friedman Billings notes 4Q07 CHIC reported EPS of $0.33 vs. ests of $0.30 and street at $0.32. Guidance of $0.47 to $0.50 on a flat to slightly negative comp included the 1Q08 Street consensus of $0.48 and should result in sharply higher trading in the name. Quarter-to-date comps are positive, and the Dec comp compare actually eases. To reflect the increase in guidance, firm raises their FY08 EPS est from $1.38 to $1.45; their FY09 EPS from $1.58 to $1.70. With 40% of the quarter complete, firm believes that the co’s guidance is conservative. For those with very short-term horizons, they would trim positions into the strength, as the next data point from the co is not until Jan. Firm remains concerned by the overall sluggish retail environment.
07:27 LULU Lululemon Athletica: Broadpoint Capital does not expect financial impact from Vitasea seaweed issue (44.29 )

Broadpoint Securities notes yesterday an article in the NY Times questioned whether LULU’s Vitasea fabric contains seaweed, as the hang tags indicate. According to lab tests the newspaper commissioned, there was no evidence of seaweed being used in the fabric. Tests at another lab (commissioned by a short seller of LULU) revealed the same findings. Firm notes tests by an independent lab commissioned by LULU confirm that there IS seaweed in the fabric. Firm ests that only about 3% of LULU’s merchandise contains Vitasea; therefore, they are not adjusting their ests. Firm believes that the majority of LULU’s merchandise is purchased for its fit, design, comfort, and the “cool factor” of having apparel that is priced at an aspirational level and is not over-distributed. Firm does not expect any of these selling points to be disputed.
07:26 Friedman Billings notes NDA approvals decelerate, down 29% YoY; NDA yield may be lowest in 13 years

Friedman Billings notes new approvals have fallen further behind last year’s levels, with just 59 NDA approvals through Oct, down 29% YoY from last year’s 83 and 13% below the 10-year average of 68. More importantly, the 14 new molecular entity (NME) approvals through Oct represent an 18% drop YoY. That said, the four NME approvals in Oct represent the high water mark for NMEs in 2007, although down 20% from the prior Oct. For the first time, firm is presenting the NDA approval yield, which appears to be on track to be the lowest ratio of NDA approvals to submissions since 1994. Firm remains bullish on PPD (PPDI)–the leading late-stage contract research organization–and eResearch Technology (ERES), given the co’s drug safety focus.
07:26 QCOM Qualcomm: Credit Suisse expects QCOM to benefit from accelerating 3G adoption (40.04 )

Credit Suisse expects QCOM to benefit from accelerating 3G adoption driving high teens EPS growth over the next 3-5 years. Following QCOM’s analyst day, firm is maintaining their FY08E/FY09E EPS est. (excl. options, excl. rev. from NOK) of $2.09/$2.61. Firm believes QCOM’s nearterm visibility remains solid, with 3G adoption in the US and Europe continuing to improve. Although QCOM expects demand in India to have a somewhat negative impact on MSM mix in FQ2, they believe seasonal strength in Korea and Japan during the March quarter can largely offset ASP pressures from India. While firm views 3G adoption as an attractive growth driver for QCOM for the next 5-7 years, they are also increasingly encouraged by improving visibility into efforts to expand beyond the core handset market over the next few years.
07:25 AVCT Avocent: Upgrade details (25.62 )

As mentioned at 6:49 ThinkEquity upgraded AVCT to Buy from Accumulate and raised their tgt to $37 from $36 saying after yesterday’s analyst event in New York they came away more optimistic on its clearer strategy, long-term guidance, and increasing software content.
07:25 NTAP Network Appliance: Color on quarter (26.61 )

Friedman Billings notes last night after the close NTAP soundly beat consensus ests for fiscal 2Q08, and guided the Street higher for the following quarter. After initially trading up, the stock gave it all back during the conf call as mgmt described continuing weakness at large financial services customers and new plans to exploit elevated margins by cutting prices to go after specific targets in the indirect channel. Firm believes the negative reaction to these two issues was myopic and likely to prove temporary. Firm considers the growth of backlog to be the most important story of the quarter; but they expect this story to take a bit of time to be factored into the stock, because mgmt did not simply provide the metric. Firm considers the quarter to be remarkably strong in the current environment, with the key being increased backlog, shattering the crux of the bear case… Broadpoint Capital notes an expanding indirect channel, robust international business, “comfortable” backlog, and a solid sales pipeline, firm notes mgmt provided a relatively strong outlook, albeit an outlook tempered by mgmt concerns about economic uncertainty, continued weakness in large U.S. enterprises, and potential weakness in the U.K. 3Q guidance was for EPS of $0.33-$0.34, vs the consensus of $0.32, on rev of $872-883 mln, the midpoint of which is 2.9% above the consensus. Mgmt expects hiring to reaccelerate and gross margin to decline sequentially by 100-150 bps, driven by selective pricing actions targeting the mid-market and a higher mix of IBM (IBM) business.
07:22 Iberia says it received approach from investor group - Bloomberg

Bloomberg reports Iberia Lineas Aereas de Espana, Spain’s largest airline, said it received a takeover approach of as much as 3.7 bln euros ($5.4 billion) from a group of investors.
07:20 RUK Reed Elsevier reaffirms 2007 goal to deliver 10% growth in adjust earnings per share at constant currencies (49.54 -0.07)

The co reaffirms that it is on track to deliver in 2007 on its goal of a minimum 10% growth in adjusted earnings per share at constant currencies. The Elsevier, LexisNexis and Reed Business divisions are performing well with good underlying revenue growth as they execute against their online and workflow solution strategies. Revenue growth and co cost mgmt are improving operating margins across the business. A wide ranging program to drive further cost efficiency is well in hand and will contribute to continued underlying margin improvement in future years.
07:17 SINA Sina: Downgrade details (49.50 )

As mentioned at 6:31 Citigroup downgraded SINA to Hold from Buy and raises their tgt to $52 from $45noting the co delivered another in line qtr on revs and guided revs in line. The firm notes advertising rev growth is stronger - at 40% YoY - but MVAS revs, which are still at ~25% of total revs, are declining at a rapid pace (-26% YoY), and continue to be a drag on growth. The firm says with the shares hovering near $50, near-term growth is insufficient to maintain a Buy.
07:17 KFT Kraft Foods confirms it will merge its Post Cereals business with Ralcorp; in spin-off, EPS will be adjusted downward by $0.13 on annual basis (32.98 )

Co confirms a definitive agreement to merge its Post cereals business into Ralcorp Holdings (RAH). The transaction is tax-efficient and worth approx $2.6 bln to KFT and its shareholders. For purposes of comparison, to have achieved an equivalent amount in a taxable transaction, KFT would have needed to receive approx $4.0 billion in cash for the business. KFT shareholders will receive at least 30.3 mln shares of RAH stock at closing, and KFT will receive approx $960 mln of cash-equivalent value. Based on market conditions prior to closing, KFT will determine whether the shares will be distributed in a spin-off or a split-off transaction. In a spin-off, KFT’s earnings per diluted share would be adjusted downward by $0.13 on an annual basis. From a KFT shareholder perspective, this is largely offset by the earnings attributable to ownership of RAH stock. In a split-off, KFT expects earnings dilution on an annual basis would be approx $0.07 per diluted share.
07:12 EHTH eHealth profiled in New America section of IBD (33.83 )

IBD reports is an online-only health insurance broker. Unlike travel agents, it is nearly alone on the Internet. A few years ago eHealth rolled out a platform that compressed the time to a few days. Then on Nov. 1, when the co released its Q3 results, it announced that an unidentified carrier had agreed to roll out “instant underwriting” starting next year. The news excited some analysts. “I don’t think there is anything you and I could buy where we don’t want immediate gratification,” said George Sutton, analyst with Craig Hallum Capital Group. “If you turn (buying health insurance) into an immediate experience, it should change the dynamics of the market quite a bit.” Meanwhile, the co is aggressively expanding its core business. Universal health plans are music to eHealth’s ears since it will bring so many new buyers searching for a good deal. In the Nov. 1 conference call, eHealth’s leaders warned that marketing expenses will rise as a percentage of revenue, after some quarters of decline. Indeed, most analysts expect the profit decline to last only a quarter. Next year, they see earnings rising 32% to 66 cents a share. This pinched forecasts for Q4: Analysts polled by Thomson Financial expect profit to slide 7% vs. the prior year.
07:08 KLIC Kulicke & Soffa beats by $0.14, beats on revs; guides Q1 revs above consensus (6.78 )

Reports Q4 (Sep) earnings of $0.47 per share, $0.14 better than the Reuters Estimates consensus of $0.33; revenues rose 46.7% year/year to $236.8 mln vs the $226 mln consensus. Co issues upside guidance for Q1, sees Q1 revs of $220 mln vs. $215.00 mln consensus.
07:08 GMCR Green Mtn Coffee misses by $0.02, beats on revs; issues Q1, Y08 guidance (33.97 )

Reports Q4 (Sep) earnings of $0.14 per share, $0.02 worse than the Reuters Estimates consensus of $0.16; revenues rose 39.0% year/year to $93 mln vs the $86 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.13-0.17, excluding $0.03 in amortization, may not compare to $0.15 consensus; sees rev growth of 40-50%. Co issues guidance for FY08, sees non-GAAP EPS of $0.81-0.86, GAAP EPS of $0.70-0.75, may not be comparable to $0.71 consensus; sees rev growth of 35-40%.
07:07 SWIR Sierra Wireless downgraded to Market Perform from Outperform at Piper Jaffray (20.42 )

07:07 HB Hillenbrand beats by $0.07, misses on revs; guides FY08 EPS below consensus, revs in-line (56.29 )

Reports Q4 (Sep) earnings of $0.82 per share, excluding non-recurring items, $0.07 better than the Reuters Estimates consensus of $0.75; revenues rose 1.9% year/year to $530.2 mln vs the $546 mln consensus. Co issues guidance for FY08, sees EPS of $3.20-3.48 vs. $3.65 consensus; sees FY08 revs of $2.1-2.17 bln vs. $2.12 bln consensus.
07:06 RAH Ralcorp: Post Cereals to merge with Ralcorp (55.47 )

Co announces the signing of a definitive agreement with Kraft Foods (KFT) to merge Post cereals with Ralcorp in an all-stock transaction. Prior to completion of the transaction, Post and associated assets will be spun-off or split-off from Kraft Foods and immediately be merged into a subsidiary of RAH. The issuance and assumption of approximately $950 mln of debt, plus the value of Ralcorp stock issued, result in a transaction valued at approximately $2.6 bln.
07:06 NVT Navteq downgraded to Market Perform from Outperform at Piper Jaffray (76.66 )

07:05 WU Western Union upgraded to Equal Weight from Underweight at First Analysis (22.73 )

07:04 WSM Williams-Sonoma beats by $0.01, reports revs in-line; reaffirms Q4 EPS guidance, revs guidance (30.26 )

Reports Q3 (Oct) earnings of $0.25 per share, $0.01 better than the Reuters Estimates consensus of $0.24; revenues rose 5.0% year/year to $895.1 mln vs the $895.5 mln consensus. Co reaffirms guidance for Q4, sees EPS of $1.20-1.26 vs. $1.22 consensus; sees Q4 revs of $1.39-1.42 bln vs. $1.4 bln consensus.
07:04 WY Weyerhaeuser upgraded to Buy from Neutral at Merrill (73.05 )

07:03 HOC Holly upgraded to Buy from Hold at Soleil - tgt $85 (53.13 )

07:03 ICON Iconix Brand announces definitive agreement to purchase the Starter Brand from Nike (23.01 )

Co announces that it has entered into a definitive agreement to purchase the Starter brand from Nike (NKE). The purchase price will be $60 mln to be paid in cash and the acquisition is anticipated to close in Dec. ICON is forecasting 2008 royalty rev from Starter of approx $18 mln worldwide.
07:02 KLIC sees Q1 revs $220 mln vs $215.00 mln Reuters consensus

07:02 MMM 3M to acquire Aearo Technologies (80.21 )

Co and Aearo Technologies announces that they have entered into a definitive agreement for 3M’s acquisition of Aearo for a total purchase price of $1.2 bln, to be financed through a combination of cash and other borrowings. The acquisition does not change the co’s 2007 earnings per share guidance as the transaction is not expected to close until the first quarter of 2008.
07:02 KLIC prelim $0.47 vs $0.33 Reuters consensus; revs $236.8 mln vs $226.00 mln Reuters consensus

07:02 MNST Monster Worldwide: Initiation details (37.68 )

As mentioned at 6:25 CIBC initiates MNST with a Sector Perform as near-term macro considerations outweigh their optimism regarding the co’s fundamental outlook over the intermediate term and their conviction regarding MNST’s position within the global online recruitment market. The firm says given its global footprint, strong brand, and solid business model, they also believe MNST is an attractive acquisition target.
07:02 ZOLL ZOLL Medical beats by $0.02, beats on revs (23.05 )

Reports Q4 (Sep) earnings of $0.33 per share, $0.02 better than the Reuters Estimates consensus of $0.31; revenues rose 25.1% year/year to $92.8 mln vs the $85.2 mln consensus.
07:02 GMCR sees Q1 $0.13-0.17 vs $0.15 Reuters consensus; sees total net rev growth of 40-50%

07:02 LOCM Local.com begins licensing local search tdchnology (3.73 )

Co announces the signing of five license agreements for U.S. Patent No. 7,231,405, which covers methods for indexing and retrieving web-related information by geographical location. The patent licenses have been integrated into revised contracts for Local.com’s LocalConnect platform, which was recently expanded via the acquisition of PremierGuide.
07:02 AMLN Amylin Pharms announces that Pramlintide and Leptin combination treatment demonstrates 12.7% weight loss in 24-week clinical obesity study (41.02 )

Co announces positive results from a 24-week proof-of-concept study with pramlintide, an analog of human amylin, and recombinant human leptin (r-metHuLeptin; metreleptin) combination treatment in overweight or obese subjects. At study end, pramlintide/metreleptin treatment reduced body weight on average by 12.7%, significantly more than treatment with pramlintide alone. Subjects treated with pramlintide/metreleptin lost an average of 25 pounds from study start compared with an average of 17 pounds for subjects treated with pramlintide alone. Subjects receiving pramlintide/metreleptin had continuous weight loss through the end of the study compared to those treated with pramlintide alone, whose weight loss had stabilized towards the end of the study. At study start, the average weight of study participants was approx 205 pounds. Consistent with previous clinical experience with pramlintide and metreleptin as single agents, the most common side effects seen with pramlintide/metreleptin combination treatment were injection site adverse events and nausea, which were mostly mild to moderate and transient in nature.
07:01 EFII Elec For Imaging announces additional $100 mln share repurchase program (21.90 )

07:01 GMCR sees FY08 $0.81-0.86 may not compare to $0.71 Reuters consensus; sees total net rev growth of 35-40%

07:01 NJR NJ Resources beats by $0.02, beats on revs; guides FY08 EPS above consensus (47.76 )

Reports Q4 (Sep) loss of $0.55 per share, $0.02 better than the Reuters Estimates consensus of ($0.57); revenues rose 11.8% year/year to $597.5 mln vs the $575.3 mln consensus. Co issues upside guidance for FY08, sees EPS of $3.20-3.30 vs. $3.11 consensus.
07:01 GMCR prelim $0.14 vs $0.16 Reuters consensus; revs $93.0 mln vs $85.98 mln Reuters consensus

07:00 SRDX SurModics announces $35 mln share repurchase authorization (49.86 )

06:59 VRSN VeriSign downgraded to Hold at WR Hambrecht (33.70 )

WR Hambrecht downgrades VRSN to Hold from Buy noting yesterday, VeriSign held its annual Analyst Day and overall, they were encouraged by management’s upbeat comments, but they would argue that much of management’s comments have already been priced into the stock for now. The firm believes that given the uncertainty surrounding the numerous divestitures coupled with the execution risk, investors would be better served at this time to move to more fertile grounds, to play the various telecommunication and security trends (firm mentions NeuStar (NSR) and McAfee (MFE).
06:49 CALLS Early Research Calls III

Upgrades: ThinkEquity upgrades Avocent (AVCT 25.62) to Buy from Accumulate… Credit Suisse upgrades CNA Financial (CNA 43.85) to Outperform from Neutral with a $42 tgt due in part to the stocks’ recent weakness and the recognition that CNA has undergone broad based change. The firm says they have two concerns; the down phase of the commercial lines property-casualty insurance underwriting cycle and the legacy of the past. That said they note Chairman and Chief Executive Steve Lilienthal recently characterized its run-off operations as in a “pretty steady state.”… Credit Suisse upgrades Merrill Lynch (MER 56.95) to Outperform from Neutral and a $80-$85 tgt noting last night after the close, Merrill Lynch announced the appointment of John Thain as CEO. The firm says this is just what Merrill needed. With greater confidence in the achievability of their $80-85 tgt the firm is now raising their rating. The firm also expects more mgmt change across the oranization… Bear Stearns upgrades Network Appliance (NTAP 26.61) to Peer Perform from Underperform… RBC upgrades Sciele Pharma (SCRX 20.12) to Sector Perform from Underperform.
06:47 USTR United Stationers signs a definitive purchase agreement for ORS Nasco (57.88 )

Co announces that its wholly owned subsidiary, United Stationers Supply, signed a definitive purchase agreement with an affiliate of Brazos Private Equity Partners, to acquire 100% of the outstanding shares of ORS Nasco Holding. The transaction is expected to close late this year and should be accretive to United’s earnings beginning in 2008. The all-cash purchase price is approximately $180 mln.
06:31 CALLS Early Research Calls II

Upgrades: Punk Ziegel upgrades Lehman Bros. (LEH 65.45) to Market Perform from Sell… Citigroup upgrades ValueClick (VCLK 21.64) to Buy from Hold… Bernstein upgrades Mylan (MYL 14.12) to Outperform from Market Perform… Lehman upgrades Amgen (AMGN 53.63) to Overweight from Equal-weight… J.P Morgan upgrades Applied Biosystems (ABI 33.66) to Overweight from Neutral… Bear Stearns upgrades Portugal Telecom (PT 14.02) to Outperform from Peer Perform… UBS upgrades Telmex (TMX 33.86) to Neutral from Sell… Susquehanna upgrades Ceragon Networks (CRNT 12.65) to Positive from Neutral. Downgrades: HSBC downgrades Invesco (IVZ 27.94) to Underweight from Neutral… Citigroup downgrades Sina.com (SINA 49.50) to Hold from Buy… J.P Morgan downgrades Rayonier (RYN 47.23) to Neutral from Overweight… Friedman Billings downgrades Goldleaf Financial Solutions (GFSI 2.79) to Market Perform from Outperform and lowers their tgt to $3 from $5, following Q307 revenue and EPS that was below firm and consensus estimates and lowered FY07 revenue guidance… Citigroup downgrades Portugal Telecom (PT 14.02) to Hold from Buy. Miscellaneous: Stanford initiates Apria Healthcare (AHG 22.44) with a Sell and a $19 tgt… Standpoint Research initiates Taiwan Semiconductor (TSM 9.84) with a Hold and sets a $14 tgt.
06:31 TRMB Trimble Navigation awarded U.S. Coast Guard contract (39.25 )

Co announces that it has received a contract from the U.S. Coast Guard to provide up to 400 reference station receivers over the next three years for its Maritime Differential GPS Service modernization program.
06:25 CALLS Early Research Calls I

Miscellaneous: Deutsche Bank initiates Gen-Probe (GPRO 63.53) with a Buy and sets a $78 tgt, as they believe the co is well-positioned to deliver solid growth over the next several quarters in its Clinical Diagnostics and Blood Screening segments while noting numerous growth drivers including market share gains, new product launches, penetration of new markets and increased utilization of NATs worldwide to curtail increasing healthcare costs… Baird initiates Ritchie Bros. Auctioneers (RBA 74.27) with a Neutral and sets a $78 tgt, based on valuation and favor the co’s auction market leadership, open-ended growth prospects and non-cyclical revenue base… Broadpoint Capital initiates LivePerson (LPSN 5.92) with a Buy and sets a $7 tgt, due to a combination of fast growth and expanding margins that are among the Saas leaders, based on their analysis… Broadpoint Capital initiates J2 Global Communications (JCOM 26.47) with a Buy, as they project J2 will surpass the $100-mln operating income plateau in CY08, grow revenue and earnings approx 15%-20%, while providing investors with one of the best free cash yields in the group, and believe continued success with their voice services could eventually expand its trading multiple… CIBC initiates Monster Worldwide (MNST 37.6 with a Sector Perform… J.P Morgan removes Pilgrims Pride (PPC 24.10) from their Focus List… Lehman initiates Encore Energy (ENP 19.01) with an Overweight.
06:24 Sensex ends down 144pts, Bharti gains 5% - The Business Standard

The Business Standard reports despite the record single-day gain (894 points) yesterday, the Sensex opened just 19 points higher at 19,948 today, and soon slipped into negative zone on weak global cues. After the initial weakness, the index moved back into positive zone but could only manage to touch a high of 19,967. Fresh selling at higher levels saw the index drop to 19,723 - down 244 points from the day’s high. The index, thereafter, exhibited range-bound movement, and finally settled with a loss of 144 points at 19,785. While the Small-cap index gained nearly 2% to 10,481, the Mid-cap index moved up 1.5% to 8414. The market breadth was positive - out of 2,849 stocks traded, 1,808 advanced, 988 declined and 53 were unchanged today.
06:24 Asian stocks fall on concern U.S. growth to slow; BHP slides - Bloomberg.com

Bloomberg.com reports Asian stocks declined after U.S. consumer spending slowed, suggesting that expansion in the world’s largest economy is cooling. Honda Motor, which gets more of its earnings from the U.S. than other major Japanese carmakers, led the drop among exporters. Japan’s Nikkei 225 Stock Average slid 0.7% to 15,396.30, while the broader Topix index rose 0.1%. Benchmarks retreated in other markets open for trading, except Indonesia and Sri Lanka. China’s CSI 300 Index dropped 1.3% to 5,081.11, the biggest drop in a week, after a report that industrial production rose 17.9% in October reignited concerns the central bank will raise interest rates for a sixth time this year.
06:24 Global stocks drop; SABMiller, Applied Materials, Honda fall - Bloomberg.com

Bloomberg.com reports global stocks declined after earnings from SABMiller Plc, Sodexho Alliance and Applied Materials deepened concern that profit growth is slowing. Europe’s Dow Jones Stoxx 600 Index lost 1.1% to 366.35 as all 18 industry groups fell. France’s CAC 40 retreated 1.3% while Germany’s DAX slipped 0.9%. The U.K.’s FTSE 100 also decreased 0.9%.
06:18 WIRES On The Wires -Update-

Acacia Research (ACTG) announces that its Contacts Synchronization subsidiary has entered into a settlement agreement with AT&T (T) for its part in the patent infringement lawsuit Civil Action No. 07-C-0250-C, filed in the Western District of WI in May of this year; terms of the settlement agreement are confidential… Starting in 2008, Verizon (VZ) has chosen Nortel (NT) equipment for a pan-European ultra-long haul optical network.
06:17 S&P futures vs fair value: -5.1. Nasdaq futures vs fair value: -12.8.
06:17 VRNM Verenium files for a $150 mln mixed shelf offering; prospectus also covers 3 mln shares of common stock being offered by selling shareholders (4.60 )

06:16 European Markets

FTSE…6379.80…-52.30…-0.8%. DAX…7713.81…-69.30…-0.9%.
06:16 Asian Markets

Nikkei…15396.30…-103.26…-0.7%. Hang Seng…28751.21…-414.80…-1.4%.
06:15 DEEP Superior Offshore announces James Persky as Chairman of the Board (9.74 )

Co announces that it has appointed James Persky to serve as its Chairman of the Board. Mr. Persky replaces Louis Schaefer, the co’s founder, who has decided to retire and has resigned from the Board of Directors effective November 14, 2007.
06:13 SMSI Smith Micro Software signs definitive agreement acquiring e frontier’s 3D graphic and animation software solutions (8.97 )

Co announces it will acquire ownership and distribution rights of certain e frontier assets for $6 mln in cash and anticipates the deal to be immediately accretive upon close of transaction, expected in the fourth quarter of 2007. e frontier had total revenues in excess of $7 mln for their fiscal year ending March 2007.
06:08 STP Suntech Power beats by $0.08, beats on revs; guides FY08 revs in-line (61.69 )

Reports Q3 (Sep) earnings of $0.36 per share, $0.08 better than the Reuters Estimates consensus of $0.28; revenues rose 137.3% year/year to $386.7 mln vs the $357.1 mln consensus. Co issues in-line guidance for FY08, sees FY08 revs of $1.9-2.1 bln vs. $1.94 bln consensus.
06:04 TYC Tyco beats by $0.02, beats on revs (39.31 )

Reports Q4 (Sep) earnings of $0.57 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.55; revenues rose 8.9% year/year to $5.03 bln vs the $4.93 bln consensus.
05:51 AMD Big stake in Advanced Micro Devices for fund - NY Post (12.28 )

The NY Post reports a NY hedge fund with a reputation for savvy technology investments is making a big bet on the shares of Advanced Micro Devices (AMD). Galleon Group, a $7 bln fund, has recently purchased “several million shares” of AMD, according to a trader involved in the trade. The fund is known for its expertise at investing in the tech and healthcare sectors, and in March lured away Goldman Sachs partner Rick Sherlund, a high-profile software analyst, to manage a portfolio of software companies. However, performance this year has been choppy for the 10-year-old Galleon’s portfolios. For example, the $920 mln Captain’s Offshore Fund is down 25.4%. Other funds have fared better, however, returning between 4.28% and 12.91%. A Galleon spokesman declined to comment on the AMD purchases.
05:39 GM GMAC unit poses challenge to Cerberus - WSJ (31.20 )

The Wall Street Journal reports pressure is mounting on Cerberus Capital Mgmt LP and General Motors (GM) to prod GMAC Financial Services into fixing its ailing mortgage unit. The troubles concern GMAC’s Residential Capital LLC, once a big source of profit but now burdened with a portfolio of loans rapidly declining in value. That has put the unit, known as ResCap, in danger of violating terms of loan agreements, triggering concerns that its lenders will demand immediate payment or force the unit into bankruptcy protection if GMAC or its owners don’t step in with an equity injection or take other steps. A GMAC spokeswoman said the lender “is closely monitoring” ResCap and has communicated a turnaround plan. In recent weeks, GMAC has said ResCap would make only loans it could sell instead of keeping on its books. The management change suggests the cos owners “are not willing to give up yet,” said Andrew Feltus, a fund manager at Pioneer Investment Management. Kathleen Shanley at GimmeCredit said bankers are likely to agree to an amendment or waiver of covenant provisions “as long as they believe the parent company is also committed to working through the problems.”
05:36 Subprime hits seem likely to keep coming - WSJ

The Wall Street Journal reports expectations are growing that UBS (UBS) may face Q4 write-downs of as much as 8 bkn Swiss francs, or $7.11 bln. Investors and analysts believe that Citigroup (C) may face more pain after announcing last week that it expected to take write-downs of $8 bln to $11 bln in Q4. Citigroup, which packaged subprime-backed bonds into CDOs, may face the toughest questions. Citigroup appears to have written down its CDO holdings by about 20%, compared to write-downs of 30% by Merrill Lynch (MER) and Morgan Stanley (MS), Sanford C. Bernstein analyst Howard Mason says. If Citigroup is forced to take further hits because of deterioration in the market for even the most senior and safe portions of CDOs, that could force it to bring its level of write-downs at least in line with those taken by Merrill and Morgan. In that case, the bank could see additional CDO write-downs of $2 bln to $4 bln, Mr. Mason said on a conference call Tuesday. Citigroup ended up with more than half of its $43 bln in CDO exposure because it had agreed to provide emergency financing to managers of subprime-backed CDOs it had sponsored. The bank isn’t believed to have any more such commitments.
05:31 BCS Barclays ends speculation over subprime exposure - WSJ (43.88 )

The Wall Street Journal reports Barclays plc (BCS) Thursday disclosed net charges and write-downs totaling GBP 1.3 bln ($2.67 bln) at Barclays Capital, but announced strong pretax profit for the unit, in a move to end speculation over the size of its exposure to the subprime mortgage crisis. The bank said pretax profit before tax in the 10 months to Oct. 31 was GBP 1.9 bln after booking credit, mortgage and leveraged finance related charges and write-downs worth GBP 500 mln in Q3. Barclays booked an additional GBP 800 mln in net charges and write-downs in October, reflecting “the impact of rating agency downgrades on a broad range of CDOs and the subsequent market downturn,” the bank said. The pretax profit figure is higher than in the same period a year earlier, Barclays said. “The October charges and write-downs reflected the impact of rating agency downgrades on a broad range of CDOs and the subsequent market downturn,” the bank said. Barclays President Bob Diamond said in a conference call that the bank’s overall strong income performance, despite recent market difficulties, helped the bank absorb the write-downs. Mr. Diamond said there was no risk of further write-downs as its residential mortgage-backed securities CDOs had been written down to zero, as had all its second-lien collateral. He said there had been some improvement in the leveraged-loan market since the summer with firmer prices. “We do feel that, going into 2008 the prospects for the new issue pipeline are pretty good,” Mr. Diamond said.
05:25 Morning News Summary

WSJ: Barclays (BCS) ends speculation over subprime exposure… Subprime hits seem likely to keep coming (UBS, C)… GMAC (GM) unit poses challenge to Cerberus. NY Post: Big stake in Advanced Micro Devices (AMD) for fund.
02:49 FRO Frontline misses by $0.04, beats on revs (38.92 )

Reports Q3 (Sep) earnings of $0.32 per share, $0.04 worse than the Reuters Estimates consensus of $0.36; revenues fell 32.2% year/year to $276.4 mln vs the $190.3 mln consensus.
02:41 WIRES On The Wires

Schering-Plough (SGP) announces that the European Commission on October 30 approved 48-week standard-dose PEGINTRON and REBETOL combination therapy for retreating adult patients with chronic hepatitis C whose prior treatment with interferon alpha and ribavirin combination therapy or interferon alpha monotherapy did not result in a sustained response… Nike (NKE) announces that it has reached a definitive agreement to sell its Starter brand to Iconix Brand Group (ICON) for $60 mln in cash.
02:39 GRMN Garmin and TomTom reach global settlement of litigation (85.60 )

Co announces a confidential global settlement of all of its intellectual property litigation with TomTom. The settlement resolves all of the pending intellectual property litigation including cases in the UK, Netherlands, Wisconsin, and Texas. The parties did not disclose details of their agreement.
02:21 CGV CGGVeritas announces Q307 results (62.76 )

Co reports Q307 group revenues were EUR 607 mnl ($829 mln), an increase of 33% y/y. EPS was EUR 0.51 per ADS.
01:14 GSOL Global Sources reports EPS in-line, revs in-line; guides Q4 EPS in-line, revs in-line; guides FY07 EPS below consensus, revs in-line (28.45 )

Reports Q3 (Sep) earnings of $0.12 per share, in-line with the Reuters Estimates consensus of $0.12; revenues rose 15.4% year/year to $33.8 mln vs the $33.7 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.25-0.28 vs. $0.25 consensus; sees Q4 revs of $61-62 mln vs. $61.20 mln consensus. Co issues mixed guidance for FY07, sees EPS of $0.66-0.69 vs. $0.70 consensus; sees FY07 revs of $182.3-183.5 mln vs. $182.40 mln consensus.
01:03 FUEL SMF Energy reports Q108 EPS of ($0.21) vs ($0.04) Q107; revs decreased 15.4% y/y to $55.5 mln (No Reuters Estimates available) (0.82 )

00:55 UVE Universal Insurance Holdings reports Q307 EPS of $0.44 vs $0.10 Q306; revs increased 136.7% y/y to $45.7 mln (No Reuters Estimates available) (7.70 )

00:50 Guests scheduled to appear on CNBC

Gary Parsons, Chairman of XM Satellite Radio (XMSR), is scheduled to appear on Power Lunch… D.F. McNease, Chief Executive Officer of Rowan Companies (RDC), is scheduled to appear on Closing Bell.
00:41 Q Qwest executives increase stakes - Barron’s Online (6.79 )

Barron’s Online reports 3 insiders at Qwest (Q) have purchased 48K shares. On Thursday, director Wayne Murdy bought 25K shares for $6.54 a share. The transaction brought his holdings to 56K shares. It was the largest insider purchase at the co in five years, according to Thomson Financial. Earlier in the week, on Nov. 5, director David Hoover bought 15K shares for $6.96 a share. He now owns 21K shares directly. Director Caroline Matthews also bought 8K shares that day for $6.96 a share. Matthews’ purchases brought her holdings to 31K shares. None of the directors own more than 1% of Qwest stock outstanding.
00:38 EBAY eBay mentioned positively in Weekday Trader - Barron’s Online (32.64 )

Barron’s Online reports with eBay’s (EBAY) 20x multiple of forward earnings, there may be little to lose in betting that the growth businesses at the co, namely the PayPal payment service and Skype’s Internet calling product, will surprise people’s expectations. “EBay is getting a different kind of investor than they’ve traditionally had, investors who are looking at the stock now for growth at a reasonable price,” observes Michael Shinnick, manager of the 1st Source Monogram Long-Short Fund. Bulls maintain that eBay stock is cheap considering high embedded-growth rates at eBay’s newer ventures, Paypal, Skype, and also StubHub. Those businesses are growing between 30% to 40% year over year. “Investors ought to pay attention not to the core auctions business, but to the things that are going to provide the ‘delta’ in earnings,” such as PayPal, insists one longtime eBay investor who declined to be identified. Investors aren’t paying any premium for businesses such as PayPal that could have upside. The most bullish estimates for eBay’s earnings next year project 18% growth, which would give its shares a PEG just above 1, lower than the 1.8 of the S&P 500. Finally, with listings growth tepid this year, the co could have an easier time actually outperforming in 2008.
00:37 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on DryShips (DRYS), USANA Health Sciences (USNA), Starent Networks (STAR), Wynn Resorts (WYNN), ISIS Pharmaceuticals (ISIS), Ctrip.com (CTRP), Walter Industries (WLT) and Take-Two Interactive (TTWO).
00:36 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Herbalife (HLF), Vodafone (VOD), Verizon (VZ), AT&T (T), Colgate-Palmolive (CL), PepsiCo (PEP), Coca-Cola (KO), Strayer Education (STRA), ITT Educational Services (ESI), Annaly Capital Management (NLY), Mettler-Toledo (MTD), Rogers Communications (RCI), Shaw Group (SGR), Foster Wheeler (FWLT), Onyx Pharmaceuticals (ONXX), Genentech (DNA), Celgene (CELG) and GameStop (GME).
00:33 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Wednesday’s edition, Jim favors GameStop (GME) based on Wal-Mart’s (WMT) solid quarter. Next, he suggests Corning (GLW) and claims shares should be higher because of its raised guidance. He says bendable fiber hasn’t been priced into shares.
00:23 Virtual Radiologic announces the pricing of its IPO of 4.0 mln shares at $17.00 per share

00:05 WG Willbros Group announces pricing of 6.875 mln share common stock offering at $34.00 per share (35.66 )

00:04 REDE RedEnvelope appoints Chief Executive Officer; reports resignation of four Directors and Q208 results (4.60 )

Co announces appointment of John Pound, currently the Executive Chairman, to the position of Chief Executive Officer. In addition, co reports the resignation of four directors. Q208 EPS was (1.0 per share and net revenues increased 2.2% year/year to $15.87 mln. No estimates available.
Wednesday After the Close
23:47 WIRES On The Wires -Update-

Avery Dennison (AVY) announces that it has priced its offering of 8.0 mln Corporate HiMEDS Units at 7.875% with a stated amount of $50.00 per unit, for an aggregate stated amount of $400 mln… InterContinental Hotels Group (IHG) and Expedia (EXPE) enter into multi-year agreement under which consumers can book IHG hotels on Expedia sites globally.
23:40 DEEP Superior Offshore misses by $0.13, beats on revs; issues upside FY07 revenue guidance (9.74 )

Reports (Sep) earnings of $0.17 per share, excluding non-recurring items, $0.13 worse than the Reuters Estimates consensus of $0.30; revenues rose 17.2% year/year to $75.5 mln vs the $61.02 mln consensus. Co issues upside guidance for FY07, sees revs of $265-275 mln vs. $260.57 mln consensus. Co issues downside guidance for FY08, sees revs of $320-350 mln vs. $376.6 mln consensus. Q407 EPS is expected to range form $0.12-$0.16, includes one-time charges of $0.16-$0.20.
19:36 After Hours Summary: AMAT down 5.2% on earnings/guidance; MER up 1.1% (confirms John Thain named Chairman and Chief Executive Officer)

Companies moving in after hours trading in reaction to earnings: Trading Up: VOXW +111.5%; ATGN +19.2%; CHIC +17.2%; FUQI +15.2%; TSTC +15.0%; CIMT +14.6%; DIET +10.7%; ZVUE +10.0%; WGOV +7.6%; PETM +6.4%; ADLS +6.3%; GSI +5.5%; VCC +4.5%; MMS +4.2%; FSYS +3.2%; KRY +2.1%; TTEK +1.6%; PODD +1.3%… Trading Down: NFI -36.6%; KUN -24.2%; SIMC -19.4%; NEON -7.7%; SINA -6.1%; PTT -5.4%; EGT -5.4%; AMAT -5.2%; CPRX -3.4%; WAVE -1.6%; AFCE -1.6%; NTAP -1.2%. Companies moving in after hours trading in reaction to news: Trading Up: KMX +5.3% (Buffett reports holding 14 mln Carmax shares at Sept 30 — DJ); VCC +4.5% (anticipates exceeding previously issued FY07 revenue guidance of $95-$100 mln vs $111.21 consensus estimate); PLCE +3.9% (Icahn reports new Children’s Place retail stores stake — DJ); BMY +3.0% (New England Journal of Medicine study shows ERBITUX improves survival in Advanced Colorectal Cancer); MOGN +2.7% (Icahn Mgmt reports new MGI Pharma stake — DJ); TTWO +2.6% (Icahn Mgmt Reports New Take-Two Interactive Stake — DJ); GENZ +2.3% (Icahn Mgmt reports new Genzyme stake — DJ); WBC +2.0% (Buffett reports holding 2.7 mln Wabco shares at Sept 30 — DJ); IGTE +1.7% (announces shareholder approval of delisting transaction); CMZ +1.7% (Icahn Mgmt reports new Compton Pete stake — DJ); MER +1.1% (confirms John Thain named Chairman and Chief Executive Officer); NSIT +1.0% (board authorizes additional $50 mln stock repurchase)… Trading Down: HSOA -6.6% (to delay Q3 Form 10-Q and conference call); SWN -2.8% (to expand customer base and pipeline system by more than 55% with purchase of Arkansas Natural Gas Utility); MTSN -2.6% (announces upcoming retirement of President and COO Robert MacKnight); AMCC -1.6% (announces 1-for-4 reverse stock split); SFN -1.2% (to acquire Technisource for $140 mln).