Data Feed

08:38 Hearing AvalonBay (AVB) and Vornado Rlty Trust (VNO) downgraded to neutral from buy at tier 1 firm

(AVB, VNO)
08:37 WIRES On The Wires

8×8 (EGHT) announces it has signed an agreement with SYNNEX calling for the distribution of Packet8 Virtual Office hosted iPBX phone services to small and medium sized businesses… Irvine Sensors (IRSN) announces that it has entered into a Memorandum of Agreement memorializing a teaming arrangement with Applied Research Associates. Pursuant to the MOA, Irvine Sensors and Applied Research plan to jointly pursue business opportunities involving the integration of thermal and visible cameras on very small, unmanned air systems… Novacea (NOVC) announces that Edward Schnipper, M.D. has been appointed executive vice president and chief medical officer.
08:36 SCANX Early pre-market gappers

Gapping up: BBND +1.9%, ATVI +8.3%, SPLS +6.3%, KMP +5.4%, PHM +4.9%, KOPN +4.9%, UBS +4.8%, BCS +4.0%, CTRN +3.5%, BPHX +3.4%, ACN +3.3%, RIG +3.2%, DCI +3.1%, CMRG +2.9%, AIV +2.8%, ETFC +2.6%, TECD +2.5%, MRO +2.4%, C +2.2%, GOLD +2.1%, MON +2.0%, MYL +2.0%, BAX +2.0%, BRCD +1.9%, CFC +1.9%, THQI +1.8%, KBH +1.8%, GSK +1.6%, NOC +1.6%, CI +1.5%, TECD +1.5%, BMY +1.4%, CPT +1.4%, PBI +1.4%, IDT +1.4%, AXA +1.4%, YGE +1.4%, LOW +1.3%, AEO +1.3%, EFII +1.2%, BP +1.2%…Gapping down: ARB -12.1%, IRIS -8.4%, BIDZ -5.8%, GCO -3.5%, AUY -2.0%, HBC -1.4%, TOPT -1.3%, NOK -1.0%.
08:35 NVLS Novellus: Mid-quarter preview; market share wins driving order growth – Caris (25.81 )

Caris notes NVLS will provide a mid-quarter update on Nov 29. Firm’s checks indicate that orders are tracking to plan and that the order strength is due in part to market share gains for their Vector Express product. They expect that NVLS will keep their order guidance at +5% to +15%. Although firm has not detected any delivery push-outs, their checks indicate that there is still some uncertainty on the shipments for key customers in Japan. Firm believes NVLS is in the early stages of a rebound in market share and C4Q orders should trend above their primary competitor, Applied Materials (AMAT). Firm believes NVLS shares can generate above avg returns as market share improves.
08:35 ESRX Express Scripts guides FY08 EPS above consensus (62.77 )

Co issues upside guidance for FY08 (Dec), sees EPS of $2.80-2.87 vs. $2.79 First Call consensus. Co sees cash flow from operations of $875-975 mln. “Our outlook for continued strong growth reflects the success of our business model, which is built around alignment of interests with plan sponsors and their patients,” stated George Paz, president, chief executive officer and chairman. “Our success in encouraging patients to increase the use of the most cost-effective therapies demonstrates that empowered, educated consumers, given convenient, state-of-the-art tools can unlock great value in actively managing their health. As we drive greater savings for our clients, our performance improves.”
08:35 IQW Quebecor World stands behind battered printing division – Globe and Mail (2.34 )

Globe and Mail reports the co has ruled out an immediate sale or merger of its struggling commercial printer subsidiary, Quebecor World. Quebecor World’s parent signalled its intention to maintain its 26% stake in the co as the printer continued to be buffeted by a cash crunch that has bruised the stock. The co is pushing the banks to convert its $750-mln revolving credit facility, of which $250-mln comes due next year, into a term loan, said a person close to the talks.
08:33 TIVO TiVo confirms it partners with NBC Universal on advertising and research solutions (5.60 ) -Update-

Co confirms it and NBC Universal (GE) have entered into a multi-year strategic partnership to leverage the strong content brands of N.B.C.U with the unique advertising, promotional and audience research capabilities enabled by TiVo DVRs. As part of the agreement, NBC Universal’s 14 television networks and 10 NBC owned-and-operated T.V stations will be able to sell TiVo Interactive Tags in combination with other NBC products and will subscribe to TiVo’s Stop||Watch second-by-second commercial ratings service.
08:33 TIVO TiVo: Update and fiscal 3Q08 preview – Kaufman (5.60 ) -Update-

Kaufman notes TIVO will report fiscal 3Q08 results Nov 28, after the markets close. Firm expects no change in recent trends. They look for fewer gross adds, heavy DirecTV churn, and a net gain of only about 15,000 new stand-alone subs. SAC per gross add is expected to rise to $400, due to advertising and inventory build in front of the holidays and fewer gross adds. Firm’s forecast is for Service and Technology rev of $56.4 mln, a 7% increase from a year ago, EBITDA losses of $13.4 mln, compared to losses of $10.1 mln in fiscal 3Q07, and EPS losses of $0.16 vs losses of $0.12 a year ago.
08:33 GA Giant Interactive announces it has been named in a securities class action lawsuit (11.61 )

Co announced that it has been named in a securities class action in the United States District Court for the Southern District of New York. The lawsuit alleges claims for violations under Section 11 and Section 12 of the Securities Act of 1933. The co denies the allegations of the complaint and intends to defend itself vigorously in the litigation.
08:32 FAF First American downgraded to Market Perform from Outperform at Keefe Bruyette (30.87 )
08:32 ESRX guides FY08 EPS above consensus
08:32 YRCW YRC Worldwide: Hearing downgraded to sell from neutral at tier 1 firm (16.90 )
08:31 WHT Wheaton River Minerals provides operational & guidance update; production exceeds 6 MMCFE/D with completion of new wells in Johnson and Hill Counties (2.47 )

Co provides an interim operations update. “The additions from recently completed wells have resulted in Westside’s net production more than doubling to over 6 MMCFE/D. With four additional wells to come on line in the near future, Westside’s net production rate is expected to average between 7 MMCFE/D and 8 MMCFE/D by year end. The success of the Gulftex acquisition and the continued progress up the learning curve in Hill County have resulted in significant production and cash flow increases. As we prepare for our 2008 drilling campaign, we are encouraged by the significant progress made in 2007.”
08:31 RSTO Restoration Hrdwr says if Sears signs same confidentiality/standstill agreement as others it will provide confidential information (7.07 )

Co stated if Sears (SHLD) will agree to execute the customary confidentiality and standstill agreement on substantially the same terms that other parties have signed, it would be pleased to provide Sears with the confidential information it requested. “While Sears has announced its willingness to sign a confidentiality agreement, there is no agreement on terms and, to date, instead of agreeing to the standstill agreement to which other interested parties have agreed, Sears has proposed to reserve the right to launch a tender offer outside the process.” The Committee stated that it is encouraged by Sears’ current proposal at $6.75 per share based upon publicly available information, which is a vast improvement over its prior proposal at $4.00 per share. At the same time, the Committee stated that it believes that stockholder value will be maximized if Sears participates inside the process with other interested parties.
08:31 SNIC Sonic Solutions: No surprises expected; option review continues – Kaufman (10.59 )

Kaufman states that as SNIC is undergoing an options review results will not be reported. Firm notes SNIC will report preliminary results after the close today. They expect SNIC to report $30.2 mln of revs and a non-GAAP loss per share of $0.01. The Street consensus is for SNIC to report revs of $31.5 mln and a non-GAAP loss per share of $0.06. The co guided for fiscal 2Q08 revs to be between $30-$33 mln, and did not give earnings guidance. Firm says with the prolonged options review, combined with a couple quarters of weak results, has placed the shares in a more show-me mode. They believe that as the co comes out of the review and the shift to next-generation DVD platforms happens they will see SNIC meet results. Firm believes that all the bad news is already in the shares and that any positive news will be well received by investors.
08:30 VNDA Vanda Pharma receives FDA acceptance of Iloperidone new drug application (8.95 )

Co announces that the FDA has officially accepted the new drug application for iloperidone, an investigational atypical antipsychotic for the treatment of schizophrenia. This confirms that the application is sufficiently complete for FDA review.
08:30 S&P futures vs fair value: +5.8. Nasdaq futures vs fair value: +9.5.

Futures continue to point to a modestly higher open. Crude oil is down 2.0% to $95.75. The weakness in crude oil is reportedly due to speculation that OPEC will boost output.
08:29 SMTC Semtech upgraded to Average at Caris- tgt $15 (14.97 )

Caris upgrades SMTC to Average from Below Average ahead of tonight’s FQ3 results, also given incremental strength within the computing and handset end-markets for SMTC, they look for OctQ results to slightly exceed investor expectations. The firm says while they believe bookings trends have decelerated off a robust pace in mid-2007, SMTC is still well positioned to show sequential revenue and earnings growth into JanQ. Given the sharp valuation reset over the past two months, SMTC’s risk/reward profile now appears balanced.
08:26 AYI Acuity Brands: Case for investment has value; GLYT reference point notable – CIBC (36.78 )

CIBC reiterates their Sector Outperform rating on shares of AYI, given its operational prospects vs. current valuation, and their assessment of intrinsic value, partially informed by PHG’s acquisition of GLYT and minimal response by AYI shares. They believe energy efficient retrofit opportunity was a key driver for PHG. Firm notes GLYT sold for 10x EV/’07E EBITDA and 17.4x their ‘08E EPS. AYI trades at 6.6x FY07E EBITDA for the stand-alone lighting co and 10.7x FY08E EPS. Margin levers, long-term retrofit, pristine balance sheet, and scarcity value could potentially support ~9x, in a hypothetical takeout scenario. Firm believes AYI could expand margins in a modest downturn, perhaps maintain in a more pronounced downturn. So, if/when recession hits, they believe AYI shares could see P/E expansion.
08:25 CFC Countrywide: Believe it is unlikely that FHLB/Atlanta will stop lending to CFC – Fox Pitt (8.64 )

Fox Pitt believes it is unlikely that FHLB/Atlanta will stop lending to CFC (the co has already largely used up its current borrowing capacity) or, worse still, pull its lines. The firm says this is because FHLB already has in place an extensive set of credit and risk limits and procedures before it will lend to any member including CFC.
08:24 BIDZ Bidz.com announces Thanksgiving weekend sals +78% yr/yr; reaffirms Q4 and FY08 guidance (15.56 )

Co announces that sales during the Thanksgiving holiday weekend, from Friday to Sunday were up 78% over last year. Co reaffirms guidance for Q4 (Dec), sees Q4 (Dec) revs of $56-58 mln vs. $57.44 mln First Call consensus. Co reaffirms guidance for FY08 (Dec 2008), sees EPS of $0.47-0.51 vs. $0.50 consensus; sees FY08 (Dec) revs of $225-230 mln vs. $229.66 mln consensus.
08:24 BONDX Bond Watch: Chopped Lower

A trace of stability returned to markets overnight following yesterday’s late session aggressive flight to quality. Citigroup is getting a cash infusion from the middle East which will help it shore up its distressed balance sheet. The sentiment has shifted away from treasuries as a result but volatility remains highs & the likelihood of its return is high, particularly with the data calendar ratcheting up. The 2-10-yr yield spread is kicking around 89.8 as curve trade has unwound much of yesterday’s steepeners. Bond prices in the EuroZone were better despite an uptick in German business sentiment & higher regional inflation indexes. in Japan, bonds suffered as equities actually eked out a gain with help from leftover fumes wafting off the announcement that China would be investment some reserves in the Asian market. Treasuries have some housing stats & consumer confidence to play with today. Weakness in both is expected & it will likely require substantial weakness to neutralize the early negative sentiment. Trade will likely be looking to grab profits on rallies unless stocks fall apart again. Technically, the market is severely overbought & will need to work off some of that sentiment. The buck is ticking lower with the euro looking to break above 1.4885 & the yen to retest yesterday’s strongest level in over 2 years. Spot gold is taking it on the chin at 815.50 (-9.10) as is crude oil at 95.60 (-2.10). Today has consumer confidence (10) & the Fed’s Plosser (12:20) & Evans (13:30). The euro is at 1.4889 & the yen is at 107.8250 while the 10-yr is -10/32 yielding 3.876%. For more bond & economic commentary click here.
08:24 Goldman revises Fed Funds forecast, expects 3% by mid-2008 – Bloomberg
08:22 TSM Taiwan Semi and UMC slowing down 12-inch capacity expansion, say sources at equipment suppliers – DigiTimes (9.49 )

DigiTimes reports TSM and UMC clearly slowing down expansion of their 12-inch capacities amid an industry downturn, according to sources with semiconductor equipment makers. Judging from the delivery schedules TSM and UMC have set with equipment suppliers, the industry recovery will have to wait until after the second quarter of 2008, the sources said.
08:21 PBY Pep Boys: 3Q08 preview; EPS should improve Y/Y to $0.02 – Morgan Joseph (14.22 )

Morgan Joseph notes PBY is scheduled to report 3Q08 results Tuesday, Nov 27, after the market close. Firm is projecting EPS of $0.02, in line with the Street consensus and $0.16 better than last year’s comparable period. Firm expects PBY to sacrifice top-line growth for a more profitable mix of product sales. They expect Y/Y sales to decline 2.1% with gross margins expanding 200 basis points. Firm continues to view PBY shares as undervalued and see upside EPS potential as the co tgts $90-100 mln in further cost reductions. They expect further sale lease-backs to reduce debt while exposing the true value of the co’s owned real estate, which they est to be worth approx $1.3 bln.
08:20 LCC US Airways: Hearing downgraded to sell from neutral at tier 1 firm (19.55 )
08:19 DECK Deckers Outdoor initiated with a Buy at Sterne Agee; tgt $155 (133.14 ) -Update-

Sterne Agee initiates DECK with a Buy and $155 tgt, as they believe that the momentum of the Ugg brand will continue, and they see acceleration in both the Teva and Simple brands. Also, firm says the international biz, which has been dormant for the past few years, is beginning to accelerate, and 2008 should prove to be an exceptional year.
08:18 ALK Alaska Air: Hearing upgraded to neutral from sell at tier 1 firm (22.42 )
08:18 UAUA UAL Corp.: Hearing upgraded to buy from neutral at tier 1 firm (39.78 )
08:15 VRGY Verigy: Uncertain SoC test environment could create soft outlook – Stifel (20.49 )

Stifel notes that on Tuesday after the market close, VRGY is scheduled to report 4Q07 (Oct) earnings results. Firm expects the co to generally meet or slightly exceed their ests of $201 mln in rev and pro forma EPS of $0.55, excluding options. Firm believes the SoC (system-on-chip) test market is in a lull, and although utilization rates appear relatively healthy, they believe many chipmakers and subcons are hesitant to add on new test capacity until the demand environment clears up. Despite this near-term uncertainty, firm believes VRGY is among the best positioned cos in the challenging semi test space.

08:12 WIRES On The Wires

Valeant Pharmaceuticals (VRX) announces that it has achieved full enrollment in RESTORE2, its second pivotal Phase 3 study of retigabine in the treatment of epilepsy… SunPower (SPWR) announces that it is working with HP to design, install and operate a 1-megawatt solar electric power system on HP’s printer manufacturing facility in San Diego… Thomson (TMS), through its Technicolor Digital Cinema business, has signed agreements with Clearview Cinemas, iPic Entertainment and Cinemaworld to install digital projection systems as part of its North American digital cinema equipment deployment… Dow Jones (DJ) announces the renewal of its global agreement with Bloomberg to deliver Dow Jones’s market-moving real-time news, commentary and analysis products to Bloomberg users via the Bloomberg Brofessional service… Veraz Networks (VRAZ) announces that ONEMAX has officially launched its WiMAX 802.16e network in the Dominican Republic on October 24, 2007… BigBand Networks (BBND) announces that five additional Chinese cable operators are deploying its Broadband Multimedia-Service Router to process and deliver digital television services… Novatel Wireless (NVTL) announces that it is working with Qualcomm (QCOM) to add the Gobi platform to the co’s broad portfolio of embedded mobile broadband access solutions.
08:12 ARB Arbitron downgraded to Peer Perform from Outperform at Bear Stearns (48.91 )

08:11 C Citigroup: CIBC discusses Abu Dhabi investment; firm waits for C to sell assets and cut its dividend (30.81 ) -Update-

CIBC notes C announced last night that it would receive a $7.5 bln equity infusion from Abu Dhabi in exchange for a 4.9% ownership of the firm and units to convert to shares in 2010-2011. They note the deal is reminiscent of a similar deal in the early 1990s, when C was in similar dire straits. Now that the co has raised $7.5 bln in equity, the firm waits for C to sell assets and cut its dividend. The firm continues to believe they are only in the early stages of C’s capital pressures. CDO write-downs are “first inning” issues, but they believe losses associated with C’s high LTV mortgage exposures will mount at an alarming rate over the next several quarters.
08:11 DKS Dick’s Sporting Goods: Enters California with acquisition of Chick’s – Stifel (30.02 ) -Update-

Stifel notes DKS is entering California with the acquistion of Chick’s Sporting Goods. Firm notes co agrees to pay $71 mln with $5 mm additional consideration available to Chick’s shareholders based on performance criteria through Jun-08. Firm notes the financial implications as follows: FY07 – earnings neutral impact. FY08 – marginally accretive given 4-wall Chick’s profitability offset by interest expense, acquisition, and integration costs. Firm believes acquisition is at a reasonable multiple a decent entry point. They will be interested to see the interaction of Chick’s West Coast lifestyle brands with Dick’s focus on Nike and Under Armour and private label / private brands.
08:11 DAL Delta Air Lines: Funds add fuel to airline deal talk – WSJ (17.48 )

WSJ reports U.S. airlines are once again flirting with potential mergers. But this time, hedge funds are providing some of the push. Pardus Capital this month took public its proposal that the two airlines (UAUA) merge. Now the hedge fund is trying to rally like-minded funds and other investors to its call for airline consolidation. Pardus took its message to about 75 airline investors two weeks ago at a meeting in New York. Then, last week, the hedge fund made individual pitches to investors in Boston. Pardus’s prodding could galvanize support among hedge funds and other active investors who agree that it is time for the fragmented U.S. industry to pursue combinations as a buffer against high fuel prices and the threat of an economic slowdown.
08:08 BONDX Economic Calendar

Consumer confidence at 10.
08:08 ACS Affiliated Computer upgraded to Buy at Stifel- tgt $51 (40.83 )

Stifel upgrades ACS to Buy from Hold with a $51 tgt based on valuation. The firm says ACS shares have attractive fundamental upside potential, and they believe ACS is a takeout candidate over the next few years.
08:07 CBF CBRE Realty Finance: 9.4% Holder ABR files amended 13D, requests meeting with CBF mgmt to discuss proposed business combination (6.87 )

From today’s SC 13D/A: “On November 26, 2007, Ivan Kaufman the Chief Executive Officer of Arbor Realty, sent Kenneth Witkin, the Chief Executive Officer of the Issuer, a letter, requesting: (i) a meeting with CBRE’s management, as well as any directors of the Issuer desiring to attend, in order to discuss the proposed business combination of Arbor Realty (ABR) and the Issuer, and (ii) a waiver from the Issuer’s Board of Directors in order to exceed the 9.8% ownership limit contained in Issuer’s charter, noting that Arbor Realty’s ownership of the Common Stock will not cause the Issuer to violate the “five-or-fewer” test for a real estate investment trust (a “REIT”) under federal income tax law because Arbor Realty is qualified as a REIT and satisfies this test.
08:07 SPWR Sunpower joint venture Woongjin Energy dedicates largest ingot pulling factory in Korea (114.00 )

Co announces that Woongjin Energy (SPWR’s joint venture with Woongjin Holdings) will dedicate a new solar silicon ingot pulling factory. All ingots produced at the factory are expected to be exported. SPWR is purchasing approximately $250 mln of silicon ingots from the joint venture through a five-year supply agreement.
08:07 SKIL SkillSoft tgt raised to $13 at Stifel (9.92 )

Stifel raises their tgt on SKIL to $13 from $11 due to positive indications on NetG Integration and quarterly results. Firm’s Buy rating on the shares is based on: 1) improving organic growth (which there was evidence of in 3Q); 2) developing positive operation leverage, and 3) the EPS and cash flow potential associated with the NetG acquisition.
08:07 SPRD Spreadtrum Comms reaffirms Q4 (10.51 ) -Update-

Co reaffirms Q4 revs of $46-47 mln vs $46.6 mln consensus, despite recent market concerns regarding component shortages and possible inventory build-up at its competitors. Co also sees operating margin to likely increase from the 11.7% level in 3Q07 to over 13% in 4Q07.
08:07 IFLG InfoLogix names Eric Rubino as its COO (2.75 )

08:06 TRB Tribune says revs down 9.3% in Oct (28.60 )

Co announces its summary of revs and newspaper advertising volume for period 10, ended Oct. 28, 2007. Consolidated revs for the period were $383 mln, down 9.3% from last year’s $422 mln. Publishing revs in October were $287 mln compared with $311 mln last year, down 7.9%. Advertising revs decreased 10.6% to $222 mln, compared with $249 mln in Oct.
08:05 EMAG Emageon signs multi-year cardiovascular PACS agreement with Novation (3.88 )

Co announces it has been awarded a multi-year contract with Novation to supply Cardiovascular PACS Products & Services. The agreement’s duration will be more than two years and includes 2 optional one-year extension periods.
08:03 GLW Corning to provide business update (22.93 )

Co Vice Chairman and Chief Financial Officer James B. Flaws will address investors at the Credit Suisse Annual Technology Conference today. He will review the co’s fourth-quarter guidance, provide updates on key topics relevant to GLW’s growth businesses, and address questions posed by investors. Flaws will review indicators that continue to support the company’s optimistic outlook for the liquid crystal display (LCD) industry and Corning’s Display Technologies business. Flaws will say, “We expect to utilize our effectively combined measures of robust cost reductions, strategic pricing and innovative technology development for continued success in 2008.” In providing an update on Corning’s diesel products business, co CFO Flaws will say, “With sales growth of 55% and significant improvement in gross margins, our diesel business has had an excellent year, in spite of the challenges faced in the heavy-duty market. We expect 2008 to be another year of progress, with strong results expected in sales growth, gross margin performance and profitability in heavy-duty.”
08:03 GRVY Gravity reports Q3 revs down 0.7% sequentially to $10.01 mln; reports loss before tax of $12.85 mln (3.45 )

08:03 WPI Watson Pharm receives FDA approval for generic Combunox (27.17 )

Co announces it has received final approval from the FDA on its Abbreviated New Drug Application for Oxycodone Hydrochloride and Ibuprofen Tablets in the 5 mg/400 mg strength. Watson’s Oxycodone Hydrochloride and Ibuprofen product is the generic equivalent to Forest Laboratories’ (FRX) Combunox, which is indicated for the short-term mgmt of acute, moderate to severe pain. For the 12-months ending Sept 2007, Combunox had total U.S. sales of approx $4 mln, according to IMS Health data. Watson intends to launch its Oxycodone Hydrochloride and Ibuprofen product immediately.
08:02 DWCH Datawatch reports Q4 EPS of $0.14 vs $0.06 single estimate; reports revs up 29% yr/yr to $6.85 mln vs $6.16 mln single estimate (4.80 )

08:01 TA TravelCenters of America announces Andrew Rebholz has been elected Exec VP and CFO (14.99 )

08:01 HPY Heartland Payment Systems upgraded to Buy from Hold at Citigroup (30.13 )

08:01 SYS SYS Technologies awarded contract with Philadelphia Regional Port Authority to install Incident Management System (2.10 )

08:00 S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +12.5.

Stocks are poised for a rebound, although futures are off their best levels of the morning. The primary catalyst for the positive disposition is the news that Abu Dhabi Investment Authority is investing $7.5 billion for a 4.9% stake in Citigroup (C), making it the bank’s largest shareholder. Homebuilder Pulte Homes (PHM) reaffirmed its fourth quarter outlook while acknowledging the continued weakness in the housing market.
07:58 TRGL Toreador Royalty: Accident prone operations threaten ‘08 forecast – Jefferies (6.01 )

Jefferies notes that a damaged pipeline is the latest snag for TRGL. They note that all offshore Turkey volumes shut-in. Ongoing challenges at its offshore Turkey facilities amplify the firm’s concerns as the co’s growth and valuation are heavily dependent on success in the South Akcakoca sub-basin.
07:55 GYMB Gymboree announces additional $25 mln share repurchase program (30.49 )

Co says they “continue to be confident about the Company’s outlook for earnings growth throughout the remainder of 2007 and beyond.”
07:54 AVR Aventine Renewable Energy CEO buys 10K shares at $8.54 (8.76 )

07:51 NY Post mentions 4 hot Israeli tech stocks

NY Post reports looking for a new tech-stock hot spot? Believe it or not, one of your best options is in Israel. Stocks mentioned: VYYO, ALVR, ITRN, ORA.
07:50 SPRD Spreadtrum Comms: 4Q07 tracking inline with expectations; sell-off unwarranted – Roth (10.51 )

Roth notes in the past week SPRD shares have sold off on concerns over double booking from Chinese handset OEMs and weakening demand going into 1Q08. While firm’s checks have revealed that some of the components have been short supply in 4Q07, they do not believe that double booking has been widespread. Firm’s checks at handset design houses and OEMs suggest that SPRD’s quarter is progressing as expected. As such, they remain comfortable with their 4Q07 est and street consensus.
07:49 ASEI American Science & Engineering upgraded to Buy at Jefferies- tgt raised to $65 (50.74 )

Jefferies upgrades ASEI to Buy from Hold and raises their tgt to $65 from $50 saying they foresee a strengthening business as they move through 2008. The firm says an expanded sales force should accelerate the top-line, healthy demand for ZBVs likely expands gross margins, and moderating SG&A costs should enable ROE to improve.
07:45 BPHX Blue Phoenix: Whacked down to 10x earnings; too cheap to resist – Roth (14.82 )

Roth notes that after BPHX posted stong Q3 results in late October that pushed its stock up into the mid $22s, investors have pummeled the name back below $15 wiping out one third of its value in a correction they consider way overdone. Firm notes BPHX is now one of the cheapest names in their entire coverage universe, trading at only 10x firm’s 2009E earnings despite 20%+ organic rev growth and very high visibility. Firm believes the co’s business momentum remains very strong; for example, just last week BluePhoenix announced its largest win yet with a U.S. federal government agency.
07:43 Study warns of decline in value of homes – WSJ

WSJ reports the property value of U.S. homes will fall by $1.2 trillion, and “at least” 1.4 mln homeowners will lose their properties to foreclosure in 2008, according to a study released Tuesday by the U.S. Conference of Mayors and the Council for the New American City. The study, prepared by Global Insight, predicts a widespread and deep economic impact from ongoing housing mkt problems, which many expect to stretch through next year. Global Insight predicted that the economy would grow at a 1.9% rate in 2008, “a full percentage point lower than would have been the case without the mortgage crisis.” It also said U.S. GDP growth would be $166 bln lower next year because of mortgage mkt problems, and that consumer spending would fall to 2% growth. The study also found that home price declines would average 7% in 2008.
07:43 OVTI OmniVision is worth a trade into the qtr but looming seasonality keeps us at a Hold – Jefferies (19.32 )

Jefferies notes given their expectation for solid October results and January guidance from OVTI, the co is worth a trade into the qtr, but caution investors from being long into December with the seasonally weak April qtr looming ahead. Despite the recent strong revenue growth and improving profitability driven by share gains, stable pricing, and operational efficiencies, the firm continues to remain neutral given the lack of indications of a more significant mix shift and the unfavorable risk/reward profile.
07:43 Lazard analyst says on CNBC that he likes event-driven stocks like ACOR, ITMN, ARTC, OSUR

Says ACOR has drug for MS in development, expects FDA approval in 3Q09… Likes ITMN, has drug for Hep-C, expects successful trials & busy year in 2008… Likes ARTC for its less-invasive procedures… Likes OSUR for its over the counter tests, expects these to be approved.
07:42 Soleil initiates the Homebuilders with a cautious stance

Soleil initiates the Homebuilders with a Cautious stance. The firm initiates KB Home (KBH) and Pulte Homes (PHM) with Holds. The firm also initiates Lennar (LEN), and Toll Brothers (TOL) with Buys. As mentioned at 7:38 the firm also initiates Centex (CTX) with a Buy and DR Horton (DHI) with a Hold.
07:41 FVE Five Star Quality Care: Acquisition activity remains robust with capital to deploy – RBC (8.84 )

RBC believes FVE is an attractive investment because 1) it is a quality operator with high occupancy rates, 2) ample capital to deploy in a tougher credit environment, and 3) good expense containment. Firm notes FVE is very active in a number of acquisition opportunities and it is making it to the latter stages of the bidding process. Cap rates have increased 25 to 50 bps to over 9%. FVE is armed with over $97 mln in cash and equivalents and has approx $250-300 mln that can be utilized for acquisitions.
07:39 DHI DR Horton initiated with a Hold at Soleil (10.58 )

07:38 ARO Aeropostale: On track to deliver a strong 3Q – RBC (25.64 )

RBC notes ARO is to report 3Q07 results Wed, Nov 28, after the close. Firm is increasing their ests as follows to reflect the recently announced share repurchases: 3Q from $0.46 to $0.47, 4Q from $0.76 to $0.84, 2007 from $1.57 to $1.61, and 2008 from $1.80 to $2.05. Based on firm’s store checks over the Thanksgiving weekend, they believe that ARO was one of the winners. ARO’s strong value message and attractive assortment position them well for the season, in firm’s opinion.
07:38 CTX Centex initiated with a Buy at Soliel (18.38 )

07:37 JTX Jackson Hewitt reports EPS in-line, misses on revs; reaffirms long-term targets (31.89 )

Reports Q2 (Oct) loss of $0.60 per share, excluding non-recurring items, in-line with the First Call consensus of ($0.60); revenues fell 8.9% year/year to $5.6 mln vs the $6.6 mln consensus. Based on the growth opportunities within the business and the industry, the Company is reaffirming its long-term financial targets. Over the next five years, the Company expects total revenues to grow by an annualized rate of 10-15% and expects diluted earnings per share to grow by an annualized rate of 15-20%. These targets exclude non-recurring charges.
07:37 TLB Talbots beats by $0.05; reaffirms Q4 EPS guidance (13.18 )

Reports Q3 (Oct) loss of $0.18 per share, $0.05 better than the First Call consensus of ($0.23), compared to 11/08 guidance of ($0.20)-($0.25); revenues fell 2.2% year/year to the previously announced $556 mlns. Co reaffirms guidance for Q4, sees EPS of ($0.05)-($0.10) vs. ($0.09) consensus; co sees Q4 comps in the range of the negative mid-single digits.
07:36 DNA Genentech: FDA warns competitor GSK of misleading Tykerb advertising – RBC (74.55 )

RBC notes the FDA issued a warning letter to GlaxoSmithKline regarding misleading marketing material for Tykerb. The language in the letter was particularly harsh and they expect GSK will issue a Dear Doctor letter to more fully disclose the risks of Tykerb. Although the impact to Herceptin from the Tykerb launch has been limited, the potential negative sentiment that the FDA warning could generate for Tykerb could slow its growth and reduce future erosion of the Herceptin market. Negative sentiment toward Tykerb could also boost interest in experimental treatments for Herceptin-refractory patients such as Genentech’s Trastuzumab-DM1.
07:35 GSK GlaxoSmithKline cholesterol plan faces FDA hurdle – WSJ (50.19 ) -Update-

WSJ reports the co acquired the rights to sell a cholesterol-lowering drug without a prescription in the U.S. but could face a tough time winning FDA approval to start selling the product. Selling a cholesterol-lowering drug without a prescription could potentially be big business for Glaxo. The drugs, known as statins, are available only by prescription in the U.S. and are among the industry’s top sellers. The drugs racked up U.S. sales of $21.6 bln last year, according to IMS Health.
07:35 PRICE Filings, Offerings, Pricings and IPOs

Filings: IRIS Intl (IRIS) files for a $125 mln mixed shelf offering… Solarfun Power (SOFL) files for a $75 mln ADS secondary offering… Medis Techs (MDTL) files for a $35 mln common stock secondary offering… Top Tankers (TOPT) files for 21 mln share common stock secondary offering… Offerings: PrivateBancorp (PVTB) announces a $200 mln equities securities private placement… Penford Corp (PENX) announces a 2 mln share common stock offering under its effective shelf registration statement… Penn Virginia (PVA) announces a public offering of $150 mln of convertible senior subordinated notes, 2.2 mln common stock offering.
07:34 AEO American Eagle reports EPS in-line, revs in-line; guides Q4 EPS in-line (21.37 )

Reports Q3 (Oct) earnings of $0.45 per share, in-line with the First Call consensus of $0.45; revenues rose 6.9% year/year to $744.4 mln in-line with the co’s preannouncement. The company’s November month-to-date comp store sales are slightly positive. Management was pleased with the Thanksgiving weekend driven by positive traffic trends. Co issues in-line guidance for Q4, sees EPS of $0.67-0.70 vs. $0.70 consensus.
07:34 FNLY Finlay Enterprises reports Q3 EPS of ($0.82) vs ($1.18) single estimate; reports revs up 4.1% yr/yr to $141.9 mln vs $141.9 mln single estimate (3.98 )

Co sees Q4 EPS of $2.15-2.30 vs $3.50 single estimate; co sees revs of $405-420 mln vs $423.4 mln single estimate.
07:32 CNBC reports on Goldman downgrade of Auto Parts Sector

CNBC commentator notes that Goldman downgraded the Auto Sector to Cautious. Mentions individual names in the group TRW, LEA, MGA, BWA.
07:31 AEO sees Q4 $0.67-0.70 vs $0.70 First Call consensus

07:31 TLB reaffirms Q4 ($0.05-0.10) vs ($0.09) First Call consensus; sees Q4 comps is in the range of negative mid-single digits

07:31 JTX prelim ($0.60) vs ($0.60) First Call consensus; revs $5.6 mln vs $6.61 mln First Call consensus

07:31 ETC Environmental Tectonics Sterilization Systems Group announces new contracts (2.20 )

Co announces the award of two new contracts by existing customers with combined contract values exceeding $1.5 mln.
07:31 AEO prelim $0.45 vs $0.45 First Call consensus; revs $744.44 mln in-line with company preannouncement

07:30 PCOP Pharmacopeia and GlaxoSmithKline collaboration identifies two additional lead compounds; lead selections trigger milestone payments totaling $1 mln to Pharmacopeia (4.47 )

Co announces that it has identified two new lead compounds for advancement in its alliance with GlaxoSmithKline (GSK), through its collaboration with the Center of Excellence for External Drug Discovery. The first of the lead compounds forms the basis of a new lead optimization program focused on identifying a treatment for respiratory disease. The other newly identified lead compound is the second from a program in inflammatory pain. As a result of the identification of these new lead compounds, Pharmacopeia will receive milestone payments totaling $1 mln from GSK.
07:30 TLB prelim ($0.18) may not compare to ($0.23) First Call consensus; revs $556.0 mln vs $550.03 mln First Call consensus

07:30 RTP Rio Tinto issues strategy and growth plans in 6-K (425.39 )

From today’s 6-K: “Chief executive Tom Albanese and some of his senior management team will provide additional information to investors on the significant value within Rio Tinto and how the Group’s portfolio of assets and growth options are exceptionally well placed to benefit from the global rise in demand for metals and minerals. Five key value drivers will be outlined: 1) an exceptional growth strategy in iron ore and a strong pricing outlook, with a conceptual pathway to treble production to over 600 million tonnes per annum; 2) positioned as the world’s leading aluminium and bauxite producer with an excellent portfolio of growth projects and a strong market outlook. Anticipated post tax synergies resulting from the Alcan integration have been increased by more than 50% from US$600 mln to US$940 mln per annum; 3) as one of the world’s leading copper businesses Rio Tinto has an impressive pipeline of exciting projects with interests in many of the world’s largest undeveloped mineralisation opportunities; 4) an increase in the divestment target from at least US$10 bln to at least US$15 bln following a strategic review; 5) a capital mgmt strategy focused on enhancing shareholder returns from cash flow while providing flexibility for ongoing growth… The rise in global mineral demand is a trend that we expect to continue for decades because of fundamental demographic and economic shifts, especially in developing economies like China and India. We believe that the value in Rio Tinto is yet to be fully reflected by the market. We believe we have a better growth pipeline than our competitors, which puts Rio Tinto in a strong position to supply the metal-hungry world.”
07:27 EQR Equity Res downgraded to Sell from Neutral at UBS (34.49 )

07:27 Teen and Specialty Retailing: 3Q07 earnings preview – Brean Murray

Brean Murray says that while 3Q07 earnings season is almost over, there still remains some excitement in the retailing sector, with Aeropostale (ARO) and Coldwater Creek (CWTR) set to release results tomorrow after the close. Firm remains buyers of ARO and believes that the co will be positive about Black Friday results and the looming potential for upside in the holiday season. They believe that, at best, the Coldwater conf call will be a non-event; frankly, firm does not believe there will be light at the end of the Coldwater tunnel until 2H08. Firm would continue to remain on the sidelines until discounting returns to more normal levels.
07:27 BRE BRE Properties downgraded to Sell from Neutral at UBS (42.17 )

07:27 MGA Magna: Hearing downgraded to sell from neutral at tier 1 firm (84.97 )

07:26 TRW TRW Automotive: Hearing downgraded to neutral from buy at tier 1 firm (24.32 )

07:26 TI Telecom Italia moves a step closer to getting new top management – WSJ (31.91 ) -Update-

WSJ reports the co moved a step closer to getting new top mgmt, possibly paving the way for an end to months of uncertainty, political involvement and squabbling among the owners of one of Europe’s largest telecom cos. Mediobanca, a powerful Italian investment bank and a top shareholder in the telecom, nominated Franco Bernabe as chief executive and Gabriele Galateri as chairman of Telecom Italia.
07:25 Hearing Aerospace & Defense sector upgraded to Attractive at tier 1 firm

07:25 WTSLA Wet Seal: Brean Murray shifting ests to be more in-line ahead of 3Q07 results (2.23 )

Brean Murray is lowering their Street high ests for 4Q07 and 2008 on WTSLA, with the co due to report 3Q07 results and new mgmt set for its first investor conf this week. While they believe their 3Q07 projections are solid, firm believes their prior 4Q07 est did not reflect the level of clearance the co is currently undertaking, especially at Arden B., and the limited operating leverage potential based on their negative same-store sales projections. They are also reducing their 2008 EPS ests to be more in line with the Street consensus; while they feel their prior ests were achievable, they see no reason to be materially aggressive on WTSLA, even after their EPS cuts, trading at 8.8x our fully taxed 2008 EPS forecast.
07:22 DGIT DG FastChannel initiated with a Buy at Morgan Joseph- tgt $30 (17.74 )

Morgan Joseph initiates DGIT with a Buy and a $30 tgt saying the co is one of the largest providers of digital media services to both the advertising and broadcast industries. The firm says H.D should be a major driver for digital advertising distribution. H.D television has finally hit the mainstream, with surging growth in consumer television set purchases, available H.D content, and available H.D channels on pay television platforms. The firm believes this trend will likely push more advertisers to produce high definition advertisements that will necessitate digital delivery to broadcast outlets.
07:22 OSK Oshkosh Truck: Hearing downgraded to neutral from buy at tier 1 firm (46.31 )

07:20 Hearing Oil and Metal stocks cut to Neutral at tier 1 firm

07:20 MYL Mylan Labs: Hearing upgraded to buy from neutral at tier 1 firm (13.53 )

07:19 MAXY Maxygen: Roche has decided to terminate further development of MAXY-alpha – Rodman & Renshaw (7.12 )

Rodman & Renshaw notes MAXY announced Roche has decided to terminate further development of MAXY-alpha. This should come as no surprise to investors given Roche’s decision to place the program on hold on Sept 21, 2007. Recall this decision came after the release of the Phase Ia data that revealed the presence of binding antibodies and a decline in the pharmacodynamic profile following a repeat dose. As a reminder, MAXY-alpha is a next-generation alpha interferon targeted for Hepatitis B and C treatment. As part of the agreement, all rights for MAXY-alpha, including back-up compounds, will revert back to MAXY. MAXY-alpha development had been fully funded by Roche and no milestone payments were scheduled through the end of 2008. Firm notes there is no change to their financial projections at this time.
07:19 NTII Neurobiological Tech: $60 mln capital infusion clears way for completion of Viprinex phase 3 trials – Rodman & Renshaw (2.62 )

Rodman & Renshaw believes NTII’s current valuation is inexplicably low. Based on firm’s FY12 EPS est of $2.90, a conservative 60% discount rate and a P/E ratio range of 20-25x, they est a current fair value of $11.00-13.00 — a significant premium to the current share price of $2.60. With an enterprise value of less than $10 mln, firm encourages investors to aggressively accumulate NTII shares ahead of interim Viprinex results expected in late 2008, which firm believes will result in significant appreciation of NTII shares.
07:18 DLIA Delia*s: 3Q07 earnings preview; lowering ests as they expect co to miss consensus – Broadpoint Capital (3.09 )

Broadpoint Capital is lowering their 3Q07 ests to $0.04 from $0.01 and their 4Q07 EPS to $0.18 from $0.21, based on lower sales assumptions, increased promotional activity, and de-leveraging of SG&A expenses as a percentage of sales in both the retail and direct divisions. Firm now expects a loss per share of $0.03 in FY07, down from EPS of $0.06 previously. They are also decreasing their FY08 EPS to $0.14 from $0.18. Firm notes DLIA will report earnings for 3Q07 on Thurs, Nov 29, 2007, after the market close. They expect DLIA to meet their newly lowered EPS est of $0.04, which is below the Street consensus of $0.08. Firm is not expecting mgmt to provide guidance.
07:17 Hearing I.T processor and Software stocks cut to Neutral at tier 1 firm

07:16 Hearing large cap Biotech, Defense, and Tobacco stocks raised to Attractive at tier 1 firm

07:15 WIRES On The Wires

Tenet Healthcare (TNH) enters into new national agreement with UnitedHealthcare (UNH). Financial terms not disclosed… Introgen Therapeutics (INGN) and its subsidiary, Gendux Molecular, announces the advancement of a Marketing Authorization Application for ADVEXIN… Rudolph Technologies (RTEC) and Entrepix announce that Rudolph has granted Entrepix an exclusive license to manufacture, sell, service and support the Rudolph AutoEL series of thin-film ellipsometers… Oncolytics Biotech (ONCY) announces that it has been granted U.S. Patent 7,300,650 entitled “Reovirus for the Treatment of Neoplasia”… Isis Pharmaceuticals (ISIS) and Excaliard Pharmaceuticals announce a new collaboration to discover and develop antisense drugs for the local treatment of fibrotic diseases, including scarring.
07:15 Hearing U.S Staffing, Lodging, Reits and Trucking sectors downgraded to Cautious at tier 1 firm

07:15 IDCC Interdigital Comm: 4Q07 guidance light due to seasonality; sell-off unwarranted – Broadpoint Capital (18.06 )

Broadpoint Capital believes yesterday’s sell-off was unwarranted and recommends buying on this weakness ahead of three near-term catalysts – a favorable ruling in the Samsung 2G/2.5G case, announcement of a new 3G licensee, both before year-end, and a favorable ruling by the ITC in the 3G case against Nokia (NOK) and Samsung in the April-July time frame.
07:14 LTM LIFE TIME Fitness: Accounting questions present buying opportunity – CIBC (49.23 )

CIBC notes LTM shares have weakened substantially partly due to questions on the co’s balance sheet and accounting. Firm believes for the most part those issues can be explained and probably will have little meaningful impact on the P&L. One key concern is the acceleration in growth of capitalized deferred membership origination costs (commissions), which could raise expenses. Firm sees sign-ups of more expensive monthly memberships to more than offset the higher commission and lower initiation fee over life of member.
07:13 CDNs poised to rise with Wed 2.0 – CIBC

CIBC ests the CDN market will grow from $395 mln in 2005 to ~$2.4 bln in 2012, a CAGR of 32%. This assumes an increase in total volumes at a CAGR of 64% and a decline in pricing of 20% per year. The most aggressive price declines will likely be felt in the large file downloads segment. (AKAM, EQIX, INAP, LLNW, NAVI, S, T, VZ)
07:12 BONT Bon-Ton Stores: 3Q07 earnings preview; could lower FY07 guidance by more than $0.75 – Boradpoint Capital (12.90 )

Broadpoint Capital notes BONT will report 3Q07 results Thurs, before the markets open. The believe BONT will miss their expectation of a loss of $0.38 per share. The Street consensus expectation is a loss of $0.60, but there is a wide range of ests from a loss of $0.38 to a loss of $0.81, and only four ests. On Nov 8, mgmt indicated that it would likely guide about $0.75 below the low end of its previous FY07 guidance range of $2.75-$2.90. At that time, firm lowered their FY07 EPS est to $2.00 from $2.28. Although weather has been more cooperative lately, firm believes that BONT has been very promotional, which will likely pressure guidance. The $0.75 may not be enough of a reduction after all.
07:12 ALNY Alnylam Pharmaceuticals: Gains another layer of patent protection in Germany – Rodman & Renshaw (32.89 )

Rodman & Renshaw notes ALNY has announced that the German Patent Office has granted a patent (DE 10080167 or “‘167 patent”) for the Kreutzer-Limmer I patent series. The 167 patent includes 52 broad claims siRNAs. The claims for the ‘167 patent cover pharmaceutical compositions and uses of double-stranded RNAs with a length of 15 to 49 base pairs. This includes the so-called ‘blunt end’ or ‘dicer substrate’ design with or without chemical modifications, in addition to other possible features important for therapeutic activity.
07:11 Hearing Airline, Office Furniture and Automobiles sectors downgraded to Cautious at tier 1 firm

07:11 FBTX Franklin Bank tgt lowered to $4 at FBR; credit costs are rising (4.29 )

Friedman Billings is lowering their tgt to $4 from $7 to reflect an increasingly challenging housing and mortgage market, coupled with the co’s low tangible book value. Firm’s new tgt represents 80% est FY07 year-end tangible book value of $5.00 and 4x their revised FY08 EPS est. Firm is lowering their FY07 EPS est to $0.70 from $1.19 to reflect an increased provision expense this quarter. They are lowering their FY08 EPS est to $1.10 from $1.35, and firm is maintaining their Market Perform rating.
07:11 PVA Penn Virginia announces public offering of $150 mln of convertible senior subordinated notes, 2.2 mln common stock offering (43.89 )

07:09 ACM Aecom Tech beats by $0.01, beats on revs; guides FY08 EPS in-line (30.99 )

Reports Q4 (Sep) earnings of $0.29 per share, $0.01 better than the First Call consensus of $0.28; revenues rose 21.6% year/year to $1.1 bln vs the $1.08 bln consensus. Co issues in-line guidance for FY08, sees EPS of $1.19-1.26 vs. $1.26 consensus.
07:09 RIMM Research In Motion: Black Friday handset survey – Canaccord (111.54 )

Canaccord notes they conducted a survey of consumer electronics stores over the past weekend, and have gathered results from 30 respondents. Firm notes BlackBerry sales were strong at AT&T (T) (BlackBerry Curve) and Verizon (VZ) (recent CDMA BlackBerry Pearl launch). The BlackBerry was weak at Sprint (S) which they believe is due to a lack of new devices at Sprint. Over 95% of the respondents believe BlackBerry sales have grown Y/Y. Just over half of the respondents believe overall handset sales were better than last year while 73% stated that smartphone sales have improved vs. last year.
07:09 DKS Dick’s Sporting Goods: Enters a definitive agreement to acquire Chick’s Sporting Goods – Susquenanna (30.02 )

07:08 TECD Tech Data beats by $0.13, reports revs in-line; guides Q4 revs below consensus (34.99 )

Reports Q3 (Oct) earnings of $0.73 per share, $0.13 better than the First Call consensus of $0.60; revenues rose 9.1% year/year to $5.92 bln vs the $5.88 bln consensus. Co issues downside guidance for Q4, sees Q4 revs of $6.35-6.50 bln vs. $6.52 bln consensus, assuming low double-digit yr/yr growth in the Americas and a mid-to-high single-digit decline in Europe.
07:08 GEO Geo Group awarded contract extension for the continued mgmt of the 1,883-Bed George W. Hill correctional facility (23.10 )

Co announces that it has been awarded a two-yr extension of its contract to provide operating services at the George W. Hill Correctional Facility. GEO has managed the Facility since 1995. Under the two-yr contract extension, the Facility is expected to generate approximately $39 mln in annual operating revs in 2008 and approximately $40.5 mln in annual operating revs in 2009. GEO’s contract can be successively extended for two-year option periods under mutual agreement.
07:07 SPLS Staples beats by $0.02, reports revs in-line; guides for Q4, FY08 (Jan) & FY09 (19.76 )

Reports Q3 (Oct) earnings of $0.42 per share, $0.02 better than the First Call consensus of $0.40; revenues rose 8.7% year/year to $5.17 bln vs the $5.19 bln consensus. Staples expects to achieve earnings per share growth of approximately 15% for both the fourth quarter and the full year (FY08 ending in Jan.). Staples anticipates low double-digit sales growth for the total company in the fourth quarter. Staples expects flat to slightly negative same store sales and high single-digit sales growth in North American Retail, mid-teens sales growth in North American Delivery, and high single-digit sales growth in local currency in International for the fourth quarter. For FY09 the company expects to achieve high single-digit sales growth for the total company and a low single-digit comparable sales increase in North American Retail.
07:07 BTRX Barrier Therapeutics announces positive results of dose escalation clinical safety study with pramiconazole (3.48 )

Co announces positive results of a key safety, dose escalation study with its novel oral antifungal agent, pramiconazole. “When we consider these data along with previously reported clinical efficacy results in onychomycosis and other fungal infections, we continue to believe there is a strong clinical rationale for advancing this product candidate to the next stage of development.” The Co is actively seeking a partner to further co-develop pramiconazole.
07:06 XING Qiao Xing issues message on it’s medium and long-term business direction, continue to take steps to ensure growth of at least 20- 30% per annum in the next 5 yrs (7.99 )

Co issues a message on it’s medium and long-term business direction, an intended acquisition and a plan to dispose of certain land use rights and construction- in-progress which are not being used in the co’s business operations. “Firstly, we will continue to take steps to ensure growth of at least 20-30% per annum in the next five yrs in our existing business of telecommunication terminal products, especially in the mobile phone handset business sub-segment. The potential is still huge for China’s market of telecommunication terminal products, especially the mobile phone handset sub- segment… “At the same time, the Company has been actively exploring possible entry into other industries of high growth rate and high profitability, to provide a source of higher shareholder value. Respectively a renowned enterprise and a well-known entrepreneur, the Company and its Chairman Mr. Wu Rui Lin are frequently invited by state-owned and private enterprises alike to participate in the development of large-scale projects in such areas as nonferrous metal and new materials. To fully exploit these opportunities, the Company has formed two years ago a project team consisting of professionals in the areas of investment, law, accounting and finance, to filter, investigate and assess new projects which hold promise.”
07:06 SORL SORL Auto Parts awarded major contract in the Indian OEM Market (6.80 )

Co announces it has signed a product sales contract with a major Original Equipment Manufacturer in India. According to the contract, SORL will supply air brake systems. This new contract marks the third overseas OEM customer win for SORL. During the last 4 months, the cumulative sales to these three new customers totaled approx $2 mln. SORL is expecting to generate approx $5 mln in revenue from these three overseas customers next year.
07:05 CMRG Casual Male misses by $0.04, misses on revs; guides FY08 EPS below consensus (7.26 )

Reports Q3 (Oct) loss of $0.05 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of ($0.01); revenues fell 0.2% year/year to $106.6 mln vs the $110 mln consensus. Co issues downside guidance for FY08, sees EPS of $0.28-0.33, excluding non-recurring items, vs. $0.40 consensus.
07:04 AKRX Akorn and Cipla announce the signing of an exclusive manufacturing and supply agreement for an inhalation drug product (7.01 )

Co and Cipla announce the signing of an exclusive manufacturing and supply agreement for an inhalation drug product. The estimated U.S. market size for the drug product is approximately $200 million.
07:04 AVB AvalonBay downgraded to Neutral from Buy at UBS (93.25 )

07:03 ACM sees FY08 $1.19-1.26 vs $1.26 First Call consensus

07:03 CMRG sees FY08 $0.28-0.33 vs $0.40 First Call consensus

07:03 SEPR Sepracor announces completion of SEC investigation (24.84 )

Co announces that it received notice from the SEC that the investigation concerning the co’s historical stock option granting practices has been completed and that no enforcement action was recommended.
07:03 ACM prelim $0.29 vs $0.28 First Call consensus, $0.28 First Call; revs $1.1 bln vs $1.08 bln First Call consensus

07:02 CMRG prelim ($0.05) vs ($0.01) First Call consensus; revs $106.6 mln vs $109.99 mln First Call consensus

07:02 CALLS Early Research Calls IV

Upgrades: Oppenheimer upgrades TechTarget (TTGT 11.77) to Buy from Neutral and lowers their tgt to $17 from $18, based on valuation and believe fundamentals remain intact. Downgrades: Bernstein downgrades Biotech stocks to Neutral… Bear Stearns downgrades NovaGold (NG 9.48) to Peer Perform from Outperform… Miscellaneous: CIBC initiates Limelight Networks (LLNW 7.51) with an Outperform and a $10 tgt saying LLNW is focused on the fastest-growing segment of the C.D.N market, media & entertainment, which should grow at a CAGR of 50%+ from 2006-09. The firm says LLNW’s all-optical network is specially suited for the delivery of these services and provides it a long-term competitive advantage… CIBC initiates Akamai Tech (AKAM 35.63) with a Sector Perform saying believe AKAM faces a number of headwinds: 1) increasing competition, 2) continued pricing pressures, 3)declining gross margins, 4) decelerating growth rates, 5) uncertain future capital requirements, and 6) long-term technological disruptions… JMP initiates Fundtech (FNDT 15.80) with an Outperform and a $19 tgt… J.P Morgan initiates Westar Energy (WR 25.39) with an Overweight…J.P Morgan initiates Swift Energy (SFY 40.85) with a Neutral… Lehman initiates Kendle (KNDL 42.38) with an Equal Weight… Merrill initiates Holly Energy (HEP 44.40) with a Buy… UBS initiates iStar Financial (SFI 25.40) with a Buy.
07:01 TECD sees Q4revs $6.35-6.50 bln vs $6.52 bln First Call consensus

07:01 SPLS expects to achieve earnings per share growth of approximately 15 percent for both the fourth quarter and the full year.

07:01 PENX Penford Corp announces a 2 mln share common stock offering under its effective shelf registration statement (30.65 )

07:01 TECD prelim $0.73 vs $0.60 First Call consensus; revs $5.92 bln vs $5.88 bln First Call consensus

07:00 SPLS prelim $0.42 vs $0.40 First Call consensus; revs $5.2 bln vs $5.19 bln First Call consensus

06:45 C Citigroup: CIBC’s Whitney says still expects Citigroup to cut dividend, says Citigroup in “early stages of ‘capital pressures’- Bloomberg (30.70 ) -Update-

06:39 CALLS Early Research Calls III

Miscellaneous: BofA initiates Lexmark International (LXK 35.45) with a Neutral and sets a $40 tgt, as they believe the restructuring is positive and this, along with the inkjet pull-back, could yield near-term EPS upside, however, the declining inkjet base is likely a long-term drag on the model, in their view… BofA initiates Electronics for Imaging (EFII 21.73) with a Buy and sets a $26.50 tgt, based on leverage potential in 2008 from cost actions and revenue mix and revenue upside potential in 2H08… BofA initiates Pitney Bowes (PBI 37.06) with a Buy and sets a $44.50 tgt, based on near-term cost actions that should provide margin support and position the co for 2H08 leverage, increased buy-backs material to ‘08EPS and cash flow that remains strong… Broadpoint Capital initiates Super Micro Computer (SMCI 8.86) with a Buy and sets a $13 tgt, as they believe the co possesses advantages, such as fast time to market and vast x86 product offerings, to seize high growth, niche opportunities within the growing x86 server market… Friedman Billings adds Millennium Pharma (MLNM 15.02) to Top Picks list and raises their tgt to $20 from $16, following released NDC monthly prescription data for October that showed 14% month-over-month growth in average daily sales for Velcade.
06:38 CALLS Early Research Calls II

Upgrades: Credit Suisse upgrades AXA (AXA 37.72) to Outperform from Neutral… Bear Stearns upgrades Chevron (CVX 83.79) to Outperform from Peer Perform… Bear Stearns upgrades Marathon (MRO 53.79) to Peer Perform from Underperform… Punk Ziegel upgrades KeyCorp (KEY 23.47) to Market Perform from Sell… Punk Ziegel upgrades Washington Mutual (WM 16.81) to Market Perform from Sell… Punk Ziegel upgrades Regions Financial (RF 23.01) to Buy from Market Perform… Punk Ziegel upgrades PNC (PNC 66.87) to Buy from Market Perform… Punk Ziegel upgrades BB&T (BBT 32.55) to Buy from Market Perform… Friedman Billings upgradese Emageon (EMAG 3.84) to Outperform from Market Perform and maintains their $6 tgt, as they believe the Q407 EPS turnaround that management previewed is on track due to scheduled Q407 software implementations that limit execution risks… Bear Stearns upgrades BP (BP 70.50) to Outperform from Peer Perform… Lehman upgrades Cavium (CAVM 23.79) to Overweight from Equal-weight. Downgrades: Baird downgrades Genlyte (GLYT 94.47) to Neutral from Outperform and maintains their $95 tgt, based on shares trading near Philips’ tender offer price and emergence of a higher bid that is unlikely, in their view… Merrill Lynch downgrades Portugal Telecom (PT 13.60) to Neutral from Buy.
06:33 ATVI Activision raises Q3 & FY08 guidance well above consensus (18.93 )

Co issues upside guidance for Q3 (Dec), sees EPS of $0.70, excluding stock based compensation, vs. $0.56 First Call consensus; sees Q3 (Dec) revs of $1.225 bln vs. $1.04 bln consensus. Co issues upside guidance for FY08 (Mar), sees EPS of $0.85, excluding stock based compensation, vs. $0.69 consensus; sees FY08 (Mar) revs of $2.30 bln vs. $2.09 bln consensus. Co said, “We are confident that the third quarter of fiscal 2008 will be the largest and most profitable quarter ever. Guitar Hero III: Legends of Rock and our newly released Call of Duty 4: Modern Warfare already are two of the biggest entertainment titles this year. Due to the strong consumer response to our slate through October and strong retail sales over the Thanksgiving weekend, we are raising our financial outlook for the December quarter and the fiscal year.”
06:32 HYGS Hydrogenics receives US$1.7 mln order for three fuel cell hybrid MidiBuses (1.05 )

Co announces that it has received a US $1.7 mln order for the delivery of three Fuel Cell Hybrid MidiBuses to the upcoming 2008 International Exposition, EXPOAGUA Zaragoza 2008 to be held next summer in the City of Zaragoza, Spain.
06:31 CALLS Early Research Calls I

Miscellaneous: BofA initiates IKON Office Solutions (IKN 12.40) with a Neutral and sets a $14.25 tgt, based on a revenue mix that should improve through ‘08 with an improved color portfolio yet see operating leverage enthusiasm tempered by recent inconsistency and view upside to ‘08 Street estimates as difficult… BofA initiates Xerox (XRX 16.21) with a Buy and sets a $19.50 tgt, based on consistent execution, EPS upside potential and valuation… BofA initiates Canon (CAJ 50.61) with a Neutral and sets a $54 tgt, based on revenue growth that is slowing into ‘08 and believe near-term margin expansion is largely dependent on revenue mix and revenue upside, leaving the near-term margin outlook unclear… BofA initiates Eastman Kodak (EK 23.07) with a Neutral and sets a $25.50 tgt, as the co is transitioning from a cash to earnings story and believe digital needs stronger growth than low-mid-single digits to outweigh mid-teens declines in the traditional businesses… Rodman & Renshaw initiates Provectus Pharma (PVCT.OB 2.21) with a Market Perform, as they believe shares are fairly valued based on the firm’s rNPV for the use of its PV 10 and PH 10 formulations in the melanoma setting, plus an additional $30 mln for the skin inflammation indications… Calyon initiates Willbros Group (WG 32.90) with a Buy and sets a $41 tgt… Rodman & Renshaw initiates Via Pharma (VIAP 2.65) with a Market Outperform and sets a $4 tgt, as they believe VIA has emerged as a mid-stage biotech focused on delivering significant shareholder value-creating milestones in the next 6-9 months and anticipate positive Phase II results from VIA-2291 in mid-’08 to drive share price appreciation.
06:30 AVZA Aviza Technology receives order for Celsior fxP ALD system from Japanese logic IC manufacturer (2.20 )

Co announces a new order for its Celsior fxP atomic layer deposition system to a leading Logic integrated circuit manufacturer in Japan.
06:30 Sensex ends down 120pts- The Business Standard

The Business Standard reports the Sensex opened with a negative gap of 119 points at 19,129 on the back of weak cues from the global markets. The index managed to touch a high of 19,212 before slipping to a low of 19,019 – a swing of 193 points – in early trades. The Sensex, thereafter, exhibited range-bound movement for the remaining part of the day, and finally ended with a loss of 120 points at 19,128. The market breadth was negative -out of 2,842 stocks traded, 1,476 declined, 1,300 advanced and 66 were unchanged today.
06:30 Asian stocks drop for first time in three days; Samsung falls – Bloomberg.com

Bloomberg.com reports Asian stocks fell for the first time in three days after South Korea’s president cleared the way for a probe into Samsung Group and Goldman, Sachs & Co. said HSBC Holdings may have to increase writedowns… Japanese shares advanced, lifting the Nikkei 225 Stock Average by 0.6% to 15,222.85, after Citigroup said it will shore up capital by selling a $7.5 bln stake to an Abu Dhabi government fund. Benchmarks dropped in most markets open for trading.
06:30 European bank stocks, Barclays rise; Rio, ThyssenKrupp decline – Bloomberg.com

Bloomberg.com reports European banking stocks rallied after Barclays Plc said full-year earnings will “broadly” meet analysts’ estimates and Citigroup received a $7.5 bln cash infusion… National benchmarks advanced in seven of the 18 western European markets. The U.K.’s FTSE 100 slipped 0.1%, while Germany’s DAX lost 0.4%. France’s CAC 40 was little changed. The Stoxx 50 increased 0.2%, and the Euro Stoxx 50, a measure for the euro region, slid 0.2%.
06:21 IPAR Inter Parfums and Brooks Brothers enter into exclusive agreement for personal care products (20.22 )

Co and Brooks Brothers announce they have entered into an exclusive agreement covering the design, manufacture and supply of personal care products for men and women to be sold at Brooks Brothers locations in the United States as well as a licensing agreement covering Brooks Brothers stores and specialty and department stores outside the United States and duty free and other travel-related retailers. In addition to new product development, Inter Parfums will assume responsibility for the production and supply of existing Brooks Brothers fragrance and related personal care products.
06:19 S&P futures vs fair value: +15.0. Nasdaq futures vs fair value: +20.5.
06:19 WIRES On The Wires

Xinhua Finance Media (XFML) announces that it has acquired JCBN Company Ltd., an advertising co with operations in Shanghai, Beijing and Hong Kong… uTANGO and Alliance Data Systems (ADS) announce the execution of a multi-year agreement; ADS will provide co-brand credit card services to uTANGO that will complement the uTANGO Life-Stage Rewards program and enhance members’ ability to earn points and receive rewards… SmartStream Technologies announces a strategic alliance with Syntel (SYNT); under the partnership agreement, Syntel’s certified teams will augment SmartStream’s established professional services group… United Air Lines, the primary subsidiary of UAL Corporation (UAUA), has purchased a license under the patent portfolio held by Ronald A. Katz Technology Licensing, L.P. and licensed through its affiliate, A2D.
06:19 European Markets

FTSE…6165.80…-14.70…-0.2%. DAX…7536.03…-31.33…-0.4%.
06:19 Asian Markets

Nikkei…15222.85…+87.64…+0.6%. Hang Seng…27210.21…-416.41…-1.5%.
06:09 SHMR Shamir Optical beats by $0.05, beats on revs (8.72 )

Reports Q3 (Sep) earnings of $0.15 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.10; revenues rose 28.2% year/year to $30.9 mln vs the $27.2 mln consensus.
06:05 BCS Barclays seeks to reassure investors on earnings – WSJ (40.38 )

The Wall Street Journal reports Barclays (BCS) Tuesday sought to reassure investors, saying nine-month earnings were supported by a good performance at its international retail and commercial-banking units. For the remainder of the year, Barclays said it expects 2007 EPS to be broadly in line with the current market consensus. That figure was 68.8 pence ($1.42), while EPS for 2006 was 71.9 pence. The bank said that in its home market, impairment performance in unsecured credit continued to improve and that charges remained “negligible” in mortgages. The bank’s domestic retail-banking result was boosted by good growth in deposits and mortgages, it said. U.K. banking remained on course to achieve its full-year cost-income ratio improvement, excluding the impact of settlements on overdraft fees. For its investment-banking activities, the bank referred to a trading update two weeks ago, when Barclays said that it would take GBP 1.3 bln in write-downs in 2H07 on debt linked to subprime mortgages and other credit instruments.
05:54 GOOG Google plans service to store users’ data – WSJ (666.00 )

The Wall Street Journal reports Google (GOOG) wants to offer consumers a new way to store their files on its hard drives, in a strategy that could accelerate a shift to Web-based computing and intensify the co’s competition with Microsoft (MSFT). Google is preparing a service that would let users store on its computers essentially all of the files they might keep on their personal-computer hard drives – such as word-processing documents, digital music, video clips and images, say people familiar with the matter. The service could let users access their files via the Internet from different computers and mobile devices when they sign on with a password, and share them online with friends. It could be released as early as a few months from now, one of the people said. GOOG plans to provide some free storage, with additional storage allotments available for a fee, say the people familiar with the matter. Planned pricing isn’t known. A Google spokeswoman declined to comment on any specific online storage plans beyond what it already offers as part of its email and other services.
05:51 TIVO NBC to use TiVo’s TV viewership data – WSJ (5.60 )

The Wall Street Journal reports GE’s (GE) NBC Universal has become the first major TV broadcaster to strike a deal with TiVo (TIVO) for the right to use TiVo’s TV viewership research and interactive advertising products. The agreement could be announced as early as today. NBC Universal’s agreement with TiVo will give the TV concern’s networks, such as NBC, Telemundo and Bravo, as well as its NBC owned-and-operated TV stations, access to TiVo’s ratings data.
05:46 FCC cable-regulation plan is at risk amid outside pressure, internal squabbling – WSJ

The Wall Street Journal reports a vote Tuesday on a proposal that could lead to stricter regulation of the cable industry was in jeopardy Monday, as internal squabbling at the FCC and outside pressure from Congress and the White House threatened to delay, if not completely derail, the plan. The FCC’s five commissioners are scheduled to vote Tuesday on a handful of cable-related proposals, including a report that finds the cable industry is now large enough that the agency can set stricter rules over cable companies. Concern about the report’s underlying data has made at least three commissioners reluctant to approve the report and has drawn unusual attention from the White House, which generally maintains a hands-off approach on telecom issues. In addition to the debate over the cable-industry report, the framing of several other issues on the FCC’s agenda, including a proposal on minority media ownership and a cable-arbitration issue, remains incomplete. Unless they are removed from the agenda, the meeting could be delayed. As of Monday night, the commissioners were still haggling over details. Drafts of several proposals remained incomplete and one FCC official described negotiations as “a total mess.” Monday, FCC Chairman Kevin Martin’s four fellow commissioners were even “seriously talking about how to not have the meeting at all,” another FCC official said.
05:40 Morning News Summary

WSJ: FCC cable-regulation plan is at risk amid outside pressure, internal squabbling… NBC to use TiVo’s (TIVO) viewership data… Google (GOOG) plans service to store users’ data.
04:33 SNN Smith & Nephew announces precautionary knee recall (58.92 )

Co announces a precautionary recall of knees from the TC-PLUS, VKS and RT-PLUS knee ranges. Smith & Nephew has been informed by a UK supplier that a limited number of semi-finished knee implant castings have a higher than specified iron content. These castings were manufactured during a short period of time in May and June this year on behalf of the co’s subsidiary, Plus Orthopedics AG.
03:52 WIRES On The Wires -Update-

Taconic Farms announces that it has reached an agreement to buy an 80.1% stake in Artemis Pharmaceuticals GmbH from Artemis’ parent co Exelixis (EXEL)… Yingli Green Energy (YGE) announces it has signed three polysilicon contracts with a polysilicon manufacturer; the total amount of polysilicon to be supplied under the contracts will allow Yingli Green Energy to produce over 40 MW of PV modules over the life of the contracts (financial terms weren’t disclosed)… Masimo (MASI) announces approval of the Masimo Rad-57 Pulse CO-Oximeter in Japan.
03:44 OSIR Osiris Therapeutics announces positive one-year data from Chondrogen trial for knee repair (10.24 )

Co announces positive one-year interim results in the evaluation of Chondrogen, a preparation of adult stem cells formulated for direct injection into the knee. The one year data showed improvement in joint condition that correlated with a clinically and statistically significant improvement in pain in patients with osteoarthritis who received Chondrogen as compared to those treated with the control, hyaluronic acid.
01:14 ODP Ziff Asset Management discloses 6.4% stake in Office Depot in Schedule 13G SEC filing (16.54 ) -Update-

01:03 C Citigroup to sell $7.5 bln of equity units to the Abu Dhabi Investment Authority (30.70 )

Co announces that it has reached an agreement to sell Equity Units, with mandatory conversion into common shares, in a private placement to the Abu Dhabi Investment Authority, in the amount of $7.5 bln. ADIA’s aggregate ownership in Citi’s common shares, including the conversion of these Equity Units, will total no more than 4.9% of Citi’s total shares outstanding. “This investment provides further capital to allow Citi to pursue attractive opportunities to grow its business. It builds on a series of actions we have taken over the past several months to strengthen our capital base, which have included sales of certain non-strategic assets, the issuance of trust preferred securities, and the previously announced plan to use common stock to purchase 32% of Nikko Cordial in Japan. In addition, ADIA is a significant participant in alternative investments and emerging markets financial services, two areas in which we have major positions and have been expanding. This investment also enables us to access capital in an efficient manner, and is consistent with our strategy of maintaining a balance sheet that benefits from highly diverse sources of funding in terms of both geography and type of security.”
01:01 CI CIGNA to acquire Great-West Healthcare (49.31 )

Co announces that it has signed a definitive agreement to acquire Great-West Healthcare, the Healthcare Division of Great-West Life & Annuity. Under the terms of the agreement, CIGNA will pay approx $1.5 bln in cash to Great-West Life & Annuity and to fund approx $400 mln of additional capital to support the acquired business. Co anticipates acquisition to be accretive to its FY08 EPS outlook of $4.00 to $4.20 per share. The transaction is expected to be accretive to EPS in 2009 and beyond.
00:58 WIRES On The Wires

Global Industries (GLBL) announces that its wholly owned subsidiary Global Offshore International has been issued a Letter of Intent for the award of a contract valued at approx $36 mln from VAALCO Gabon (Etame)… Northrop Grumman (NOC) has received a follow-on contract from U.S. Army Communications and Electronics Command to provide soldiers additional Frequency Hopping Multiplexers antenna systems; contract is valued at $20 mln… GlobalSantaFe (GSF) announces that it received a subpoena from the SEC seeking documents related to the co’s ongoing internal investigation… Cell Therapeutics (CTIC) announces it intends to utilize the results of the Phase III first-line indolent trial of ZEVALIN, known as the FIT trial, for submission to the FDA for potential approval in the consolidation of first remissions following chemotherapy for patients with follicular non-Hodgkin’s lymphoma.
00:41 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Daimler (DAI), Quintana Maritime (QMAR), Silver Wheaton (SLW) and Bank of America (BAC).
00:39 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Coca-Cola (KO), PepsiCo (PEP), Medco Health (MHS), Brocade Communications (BRCD), Cisco Systems (CSCO), Research In Motion (RIMM), Google (GOOG), Apple (AAPL), Barrick Gold (ABX), Yamana Gold (AUY) and Procter & Gamble (PG).
00:35 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Monday’s edition, Jim recommended defensive issues Pepsi (PEP), Coca-Cola (KO), Procter & Gamble (PG), Medco (MHS) and Altria (MO). During the “Sudden Death” round, Cramer was bearish on Gmarket (GMKT).