Data Feed

09:13 TECHX Market View: Support and Resistance -Technical-

The stock market readings are pointing to a mixed/slightly weaker start but technical factors suggest the pullback will be corrective. For a look at the charts from a monthly to intraday as well as the resistance/support levels of interest for today for all the major averages go to The Technical Take.
09:11 TEN Tenneco downgraded to Equal Weight from Overweight at Lehman (29.59 )

09:11 WIRES On The Wires

Xerium Technologies (XRM) announces the acquisition of a privately held roll covers business in China. The total consideration for the acquisition was approx $12 mln… Goldcorp (GG) provides details of a plan to expand mill throughput by 30% at the Penasquito project in Mexico to 130K ore tonnes per day and to accelerate the project production schedule. The expanded Penasquito operation is expected to produce an average 1.7 mln gold equivalent ounces per year (approx 400K ounces of gold plus silver, zinc and lead)… Medtronic (MDT) announces that it has filed the final module of its Pre-Market Approval application with the FDA for the Talent Abdominal Stent Graft System.
09:10 SCANX Gapping down

In reaction to weak earnings/guidance: PAY -16.7% (anticipates restatement of 2007 quarterly financial results, reduces previously reported pre-tax income amounts), CHG -3.0% (revises Y07 guidance), UNH -2.7%, ABC -1.8%, MET -1.4% (issues guidance)… Other news: UFS -21.9% (Governor of Saskatchewan withdraws from memorandum understanding), PRKR -18.6% (mentioned negatively article in Barron’s; this morning co issued response to article to “correct errors and factual inaccuracies and to clarify information”), CHU -6.1% (still checking), RTP -3.7% and BHP -1.6% (RTP CEO says BHP’s offer ‘far away’ from true valuation - Daily Telegraph), UNG -3.0% (still checking), AMGN -2.4% (announces interim results of Aranesp), AAUK -2.4% (rumors of potential merger between AAUK and Xstrata - Guardian Unlimited), WEN -2.4% (Peltz unlikely to get funding for WEN’s bid from C and MER - Reuters), NKE -1.3% (Reuters reports Adidas rose with mkt talk that NKE and Asics may be interested in the co)… Analyst downgrades: ETFC -12.0% (downgraded to Sell at BofA; Cramer makes bearish comments on MadMoney), AG -1.8% (downgraded to Hold at Stifel), RIMM -1.6% (downgraded to Market Perform at Morgan Keegan).
09:10 S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -5.8.

It is shaping up to be a slightly lower open for the S&P 500 and Nasdaq Composite as selling pressure picks up a bit. Crude oil has pared some of its earlier losses, and is now down 0.6% to $88.19 per barrel.
09:10 LCUT Lifetime Brands to close 30 outlet stores, completes building sale, opens new distribution center, increases stock repurchase authorization

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09:09 PLCE Children’s Place: Hearing upgraded to Strong Buy at boutique firm (28.46 )

09:07 ATVI Activision / Blizzard conf call update (22.15 ) -Update-

Co sees combined co 2009 EPS in excess of $1.20 on revs of $4.3 bln. New company will change FY end to align with Vivendi. Future growth will come from multiple of delivery platforms and models. Sees revenue growth of 14% over the next 2 years. Co to focus on improving operating results of Sierra division. Transaction expected to close in first half of 2008.
09:06 DNA Genentech: Avastin didn’t help patients with multiple relapses, FDA says - Bloomberg -Update-

09:06 CEPH Cephalon: BWS Financial believes that CEPH has more than a 75% chance of approval on the first round due to the clinical trial data showing high efficacy and low adverse events (74.92 ) -Update-

BWS Financial notes CEPH announced the FDA has granted priority review to the NDA filing of Treanda for treating chronic lymphocytic leukemia. Review of Treanda could be completed in the first half of 2008 with CEPH expecting the drug to be on the market in the second quarter. Treanda also has orphan drug status, which gives CEPH seven years of exclusivity if the drug is approved. They believe that CEPH has more than a 75% chance of approval on the first round due to the clinical trial data showing high efficacy and low adverse events.
09:04 RIC Richmont Mines announces normal course issuer bid to purchase up to 5% of outstanding shares (3.05 )

Co announces the TSX has accepted the co’s notice of intention to make a normal course issuer bid to purchase some of its outstanding common shares through the facilities of the TSX for a period of twelve months ending on December 4, 2008. Up to 1,200,000 common shares of the co, representing approximately 5% of the 24,053,353 common shares of the co issued and outstanding on November 30, 2007, may be purchased under the bid. Daily repurchases will be limited to 9,824 common shares, other than block purchase exemptions. The purchases may commence on December 5, 2007 and may extend to December 4, 2008 or on such earlier date as the co may complete its purchases pursuant to the Notice or otherwise terminate the bid.
09:04 DNA Genentech: Avastin “key issue” of slowing tumors is benefit, FDA says - Bloomberg -Update-

09:04 SFSF SuccessFactors initiated with a Hold at Wedbush (13.73 )

09:03 STSA Sterling Financial and North Valley Bancorp terminate merger plans (17.93 )

Sterling Financial (STSA) announces that it has received notice from North Valley Bancorp (NOVB) that, effective December 1, 2007, North Valley has elected to terminate the definitive agreement for the merger of North Valley with and into Sterling. Pursuant to the terms of the Agreement and Plan of Merger dated April 10, 2007, either party had the right to terminate the Merger Agreement if the proposed merger was not consummated by November 30, 2007.
09:02 DNA Genentech drug slowed spread of tumors, FDA staff says; Avastin issue didn’t prolong survival - Bloomberg

Co seeks Avastin approval for breast tumors.
09:02 COHT Cohesant Technologies: Graco to acquire Cohesant Technologies’ GlasCraft subsidiary (5.98 )

Co announces that it has entered into a definitive agreement pursuant to which GGG will acquire COHT’s GlasCraft subsidiary. The acquisition will be accomplished through a merger with COHT and a spin off of all the non-GlasCraft business operations. The total transaction value is $35 mln including, indebtedness assumed by GGG at the closing and transaction expenses. COHT shareholders will receive a minimum cash payment of $9.05/share of COHT common stock and could receive as much as $9.55/share.
09:02 WRAPX Pre-market Summary

Following last week’s rally, futures indicate a flat start for the mkt in the month of Dec. M&A activity is leading the headlines. Vivendi has signed a definitive agreement to merge its Vivendi Games business with Activision (ATVI). Through a series of transactions, Vivendi will end up owning 52% of the new co that will be called Activision Blizzard. Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday’s closing price. In other developments, News Corp (NWS.A) is said to be interested in buying e-mail service LinkedIn for more than $1.0 bln, while Lennar (LEN) is forming a strategic land investment venture with Morgan Stanley Real Estate and will sell 11K home sites to the venture for $525 mln. In financial news, Reuters is reporting that Berkshire Hathaway (BRK.A) bought $2.1 bln worth of TXU junk bonds. While some might view this as a bottoming signal for the junk bond mkt, a CNBC report was quick to note that Warren Buffett cautioned investors against thinking that way since Berkshire’s junk bond interest right now is only in these TXU bonds. Separately, Bloomberg reported Moody’s Investors Service may lower ratings on $105 bln of debt sold by structured investment vehicles after the net asset values of 20 SIVs sponsored by cos including Citigroup (C) declined to 55% from 71% a month ago. Dow futures are currently -8; Nasdaq futures are currently -2.5; S&P futures are currently +0.8. For technical levels of interest, click here… The Bond mkt rallied slightly at its open as Moody’s announcement that it has put about $105 bln of SIVs on watch to the negative side is providing support. Note traders this week will be looking ahead to Friday’s Nonfarm Payroll number. The 10-yr is currently +06/32 to 3.915%. On today’s Fed calendar, Boston President Rosengren has already spoken this morning (8:15ET), but Treasury Secretary Paulson speaks at a housing conference at 10:30ET and San Francisco President Yellen speaks on U.S. outlook and monetary policy at 13:30ET. Note Rosengren said he sees growth “well below potential” for the next 2 quarters, but it will gradually improve next year… In Commodities, Jan crude oil ($88.55 -0.16) fell back below $88 this morning, though it has rebounded back near break-even. There is intl election news that could be playing a part. Venezuelan President Hugo Chavez suffered his first electoral loss in nine years as voters turned down his plan to revamp the constitution and cement his power. Also, Vladimir Putin’s party swept a parliamentary election, giving the president the mandate he sought to keep guiding Russia after he leaves office next year… In Europe, mkts fluctuated either side of unchanged by mid-day as a 3-day rally paused ahead of key rate decisions later in the week. Miners tracked metals lower, while media stocks rose. FTSE is currently -0.5%; DAX is currently -0.1%; CAC is currently -0.3%. In Asia, mkts overall rose modestly on continued speculation the Federal Reserve will cut U.S. interest rates to bolster growth in the world’s largest economy. Nikkei closed -0.3%; Hang Seng closed +0.1%; Shanghai Composite closed -0.1%… Notable pre-market Calls include Upgrades: AMD at Caris, ATVI at BMP Capital; Downgrades: ETFC at BofA, RIMM at Morgan Keegan, PNK at Lehman… On the Earnings calendar: CPWM, ISLE and PVH are confirmed to report today after the close… On the Economic calendar, the ISM Manufacturing Index (consensus 50.5) will be released at 10:00ET.
09:02 CPWM Cost Plus: 3Q07 earnings preview - C.L. King (3.15 )

C.L. King notes CPWM will report Q3 results Monday, after the close. Firm believes CPWM continues to struggle with declining customer traffic and past merchandising miscues in the face of three years of slack industry-wide demand for home furnishings and increasing competition. Mgmt does not expect its turnaround efforts to drive improved financial results until 2008.
09:02 BEAV BE Aerospace initiated with a Buy at Amtech- tgt $57 (47.00 )

Amtech initiates BEAV with a Buy and a $57 tgt saying while the stock is up 68% year-to-date, they believe significant upside remains. The firm says BEAV has significant exposure to the commercial, regional and business jet market, with over 80% of its estimated 2007 $1.7 bln in sales tied to OEM aircraft production and aftermarket.
09:02 BRCM Broadcom upgraded to Buy at Amtech- tgt $34 (26.74 )

Amtech upgrades BRCM to Buy from Neutral saying BRCM shares have dramatically underperformed, declining nearly 40% from its highs a few weeks ago. At current levels, the firm says they are buyers of the stock. The firm says they may be early in upgrading on a fundamental basis as there might be more bad news to follow; however, they believe shares at these levels adequately discount much of this news.
09:01 AVII AVI BioPharma receives fast track designation for AVI-4658 for treatment of Duchenne muscular dystrophy (2.33 -0.06)

Co announced that the FDA has granted Fast Track status to its product candidate, AVI-4658, for the treatment of Duchenne muscular dystrophy. DMD is the most common fatal genetic disorder to affect children around the world. It is a devastating and incurable muscle-wasting disease associated with specific inborn errors in the gene that expresses dystrophin, a protein that plays an important structural role in muscle fibers. When dystrophin is missing or nonfunctional due to a mutation in the dystrophin gene, as it is in DMD, the result is membrane leakage and fiber damage, ultimately leading to degeneration and death of the muscle fiber. In two-thirds of DMD cases, the genetic mistake is hereditary, but one-third of cases arise spontaneously.
09:01 WFR MEMC Elec removed from Focus List at J.P Morgan (77.58 )

09:01 TEVA Teva Pharm announces that Early Treatment with COPAXONE Demonstrated Robust Protection against Progression to Clinically Definite Multiple Sclerosis in the PreCISe Study (44.63 )

Co announces the positive results from an interim analysis of the PreCISe trial in patients presenting with a first clinical event and MRI features suggestive of multiple sclerosis. The results showed that treatment with COPAXONE reduced the risk of developing clinically definite MS (CDMS) by 44% vs placebo, and prolonged the quartile time to disease conversion to 722 days vs 336 days. Professor Paul O’Connor, chairman of the study’s independent data monitoring committee (DMC), says, “After analyzing the data from the PreCISe study at the interim analysis, the DMC recommended that the placebo arm of the trial be stopped, as COPAXONE successfully met the efficacy endpoint of the study; all placebo patients will now be given the opportunity to receive active treatment with COPAXONE for two years.”
09:01 TRGT Targacept announces results of phase II study of TC-2696 in postoperative dental pain; did not meet the primary endpoints (9.60 +0.12) -Update-

In the trial, 181 patients received a single dose of one of three doses of TC-2696 or ibuprofen or placebo following third molar extraction surgery. TC-2696 did not meet the primary endpoints, superior pain relief four or six hours after dosing as compared to placebo. TC-2696 was generally well tolerated in the trial, as there were no clinically meaningful differences in the incidence of adverse events between the TC-2696 dose groups and the placebo group and no unexpected or serious adverse events. These results suggest that TC-2696 is not a viable therapeutic candidate for acute post-operative pain. (stock is halted)
09:00 ELOY eLoyalty names new Chief Financial Officer (13.07 )

Co announces that it has appointed Chris Min Vice President and CFO. His initial focus will be to streamline ELOY’s expense structure and implement improved operational metrics and reporting.
09:00 RTP Rio Tinto tells shareholders to hold out for improved offer from BHP - Times of London (467.48 ) -Update-

Times of London reports the co has told shareholders a deal with BHP to create a mining giant could be possible if the current offer is improved. Rio’s mgmt has been telling shareholders why it believes the existing BHP offer undervalues the co. According to shareholders, Rio’s mgmt is not ruling out the prospect of a merger with its Anglo-Australian rival but it is holding out for a better deal. “They said nothing about ruling themselves out of a deal with BHP,” one shareholder said, “but it will take another offer from BHP and then we will get discussions.”
09:00 ESIO Electro Scientific hires Paul Oldham as Chief Financial Officer (20.25 -0.06)

Co announced that Paul Oldham has accepted ESI’s offer to serve as CFO, vice president of administration and corporate secretary. ESI expects Oldham will start on or before January 7, 2008. Oldham will replace Kerry Mustoe, who has been serving as ESI’s CFO on an interim basis since September 30, 2007. Mustoe will remain as ESI’s vice president, corporate controller and chief accounting officer.
09:00 CRMT America’s Car-Mart: 2Q08 preview - C.L. King (10.87 )

C.L. King believes CRMT’s 2Q08 results will again be characterized by continued gross margin pressure (due to higher vehicle acquisition costs) and high credit losses. Same-store sales will likely be up low-single-digits (following three straight quarters of negative comps) as mgmt has cautiously adjusted its consumer offer to accommodate modest sales growth. Firm ests a provision for credit losses of approx 23.5% of sales, up sequentially but down from 37.0% a year ago. This is still well above the co’s historical range of 17%-21%. One potential upside could be more business from sub-prime consumers who are now unable to get financing from conventional car dealers but who would actually represent higher quality credits than Car-Mart’s typical customer.
08:57 FRX Forest Labs: FDA issues approvable letter for Nebivolol for the treatment of Hypertension - AmTech (38.55 ) -Update-

AmTech notes that over the weekend, FRX announced that it had received an approvable letter from the FDA for Nebivolol, with no incremental questions raised related to safety, efficacy, or labeling. FDA’s only concern had to do with problems at a back-up manufacturing facility for the product in Belgium, which they believe to largely be a technicality. FRX continues to plan for launch of the drug in Jan 2008, and they believe Nebivolol will help diversify the revenue concentration away from Lexapro.
08:57 WU Western Union: Might be a good time to buy the stock - Barron’s (22.60 )

Barron’s reports it just might be a good time to wire some money Western Union’s way. Best known for the rat-a-tat of its old telegraph system and its singing telegrams, the global money-transfer co has seen its shares slide from a high of 24.14 in late 2006 to 22.50. All told, they’re flat this year, well behind the Standard & Poor’s 500 and their peer group, financial administrators. The stock’s descent followed allegations that Western Union’s payment network was being used for money laundering, and an Arizona state probe of Mexican immigration that included the seizure of some Western Union money transfers. Another concern: Warren Buffett’s Berkshire Hathaway dumped the final three mln shares of its 10-mln-share position in the third quarter of 2007, following Western Union’s spinoff from First Data in September 2006. Was Buffett too quick to sell? Very possibly. CEO Christina Gold has addressed the problems. The shares, even after recent gains, remain cheap, and a high-margin business speeding money around the globe is pretty appealing, particularly if U.S. growth starts to sag. Analysts expect earnings to limp this year before rebounding next year.
08:57 ERTS Electronic Arts: Cowen believes ATVI/Vivendi combination a potential negative for ERTS (56.19 )

Cowen thinks the announcement of the deal between ATVI and Vivendi could have a negative impact on ERTS, which have long benefited from their position as the only large-cap video game stock. Additionally, Activision Blizzard is likely to prove a tough competitor for ERTS.
08:55 TRGT Targacept halted, news pending (9.60 +0.12)

08:55 FRX Forest Labs: Nebivolol gets approvable letter; planning Jan/Feb launch - Cowen (38.55 )

Cowen notes FRX and Mylan received an ‘approvable’ letter for nebivolol. In the approvable letter, the FDA cited deficiencies at a backup manufacturing facility in Belgium, and indicated that the full approval requires correction of those deficiencies, which already is underway. FRX mgmt believes the FDA’s concerns can be addressed promptly, and still plans to launch Bystolic in Jan or Feb 2008. They expect FRX shares to encounter some selling pressure on the ‘approvable’ letter news, but mgmt expects to launch Bystolic on or within a few weeks of their original target, so their fundamental outlook is unchanged. Key Drivers: 1) approval and launch of Bystolic in 1Q08; 2) the milnacipran NDA filing this month; 3) the release of pivotal data for Namenda MR in Jan ‘08 and Phase 2b data for Aclidinium and Linaclotide in 2Q08; and 4) additional pipeline expansion deals.
08:54 MRO Marathon Oil announces new deepwater discovery in Angola (55.90 )

Co announces that its subsidiary, Marathon International Petroleum Angola Block 32, has participated in a new deepwater discovery on Block 32 offshore Angola. Alho is the 11th discovery on Block 32 and the 26th overall discovery in Marathon’s deepwater exploration program on Blocks 31 and 32 which began in 2001.
08:53 Bear Stearns boosts stock allocation to 70% from 65%, cuts 2007-08 S&P profit ests - Bloomberg

08:51 WLT Walter Inds: Lot of steam left in the stock; Could hit low 40’s over the next year - Barron’s (34.69 )

Barron’s reports hot pricing for metallurgical coal keeps stoking investors’ interest in the co. At around 35, Walter is up 24% this year. It looks as if there’s a lot of steam left in the stock, which could hit at least the low 40s over the next year. The Street sees Walter earning $3.02 a share in 2008, up sharply from an estimated $1.88 this year. Some analysts see Walter selling nearly seven mln short tons of met coal in ‘08, versus six mln this year, with the average price per ton increasing to more than $105. Officials of the are optimistic that 2008-’09 prices could exceed the record $127 a ton seen in 2005.
08:50 SCANX Gapping up

M&A news: UAPH +25.4% (acquired by AGU for $39/share), ATVI +21.9% (ATVI and Vivendi Games announce plan to merge; Vivendi Games will be converted into ATVI shares at $27.50)… Other news: ONT +20.0% (UL has selected ONT’s ON2 Flix Publisher to provide enterprise video encoding and delivery services), SKM +10.5% (Reuters reports SKM agreed to buy stake in broadband provider HanaroTelecom for $1.18 bln in cash), TRB +3.1% (FCC approved ownership waiver from regulators), ERIC +2.2% (selected by DT for 5 year managed service contract), BGC +2.2% (positive remarks in Barron’s, Don Hayes recommendation), WPPGY +2.1% (DELL makes advertising pact of $4.5 bln), SAP +1.5% (declines comment on mkt talk of possible MSFT bid for IT - Reuters), TC +1.5% and GMO +1.7% (Cramer makes positive comments on MadMoney), MHS +1.5% (ABC signs letter of intent with MHS as prime vendor for mail-order wholesaler services), TIF +1.1% (announces strategic alliance with Swatch for watch distribution), PSPT +1.1% (confirms receipt of unsolicited proposal to be acquired for $15/share), DT +1.0% (selects ERIC for 5 year managed service contract), IBM +1.0% (announces repurchase of up to $1 bln of stock)… Analyst upgrades: NFLX +3.7% (upgraded to Buy at Piper Jaffray), PCU +2.1% (initiated with Overweight at HSBC), TIE +1.6% (initiated with Buy at Citigroup), CBEY +1.5% (upgraded to Outperform at Wachovia).
08:49 ATVI Activision: Hearing downgraded to Buy from Strong Buy at Wedbush (22.15 ) -Update-

08:47 MT ArcelorMittal chairman to step down in 2008 - Reuters (73.82 )

Reuters reports the co said that Chairman Joseph Kinsch would step down after the group’s annual shareholder meeting in May 2008.
08:45 Kazakhstan oil tax crackdown; Country seeks to increase state ownership of the Kashagan field - FT

FT reports Kazakhstan warned intl oil cos at the weekend to stop living “in ancient times” as it prepared to tighten the fiscal regime at oilfields and increase state ownership of its flagship Caspian Sea development. Daulet Yergozhin, Kazakhstan’s deputy finance minister, said, draft revisions to the tax code, to be debated in parliament early next year, would increase budget revenues, be “simple to administer and collect and very understandable for oil and mineral producers”. There are plans to introduce a new blanket tax covering all oil production to replace existing royalties and rents charged only on oil exports. (Related stocks: E, XOM, RDS.A, TOT, COP)
08:45 NFLX Netflix upgraded to Buy from Neutral at Piper Jaffray (23.10 )

08:40 WIRES On The Wires

Kratos Defense and Security Solutions (KTOS) announces that it has been awarded an additional $15.5 mln in new business on its contract with the Space and Naval Warfare Systems Center San Diego contract supporting the Joint Interagency Task Force South… Force Protection (FRPT) and General Dynamics Land Systems (GD) -through their joint venture Force Dynamics - announce that in November they ‘once again’ broke monthly vehicle production records… HireRight (HIRE) and The RightThing announce a global partnership agreement… Xethanol Corporation (XNL) announces that on Nov 28, 2007, the company agreed in principle to settle the seven consolidated putative class action lawsuits pending against it captioned as In re Xethanol Corporation Securities Litigation… Adept Technology (ADEP) announces it has signed two new regional sales representative agencies to continue its distribution channel expansion in North America.
08:39 HAYN Haynes Intl initiated with a Hold at Citigroup (84.51 )

08:39 MOT Motorola has tall repair order - WSJ (15.97 ) -Update-

WSJ reports when the co’s president Greg Brown takes the reins as CEO, succeeding Ed Zander, whose departure was announced Friday, his top priority is sure to be trying to fix the telecom co’s troubled handset division. But another issue he may also have to weigh: whether to bow to calls from some investors to break up the storied telecommunication equipment maker. That could include spinning off the co’s sagging networks business to better focus resources on handsets, which generate about half of the co’s $39 bln in annual sales. While Mr. Brown publicly has given no indication that he’s willing to consider a breakup, he is seen on Wall Street as more of a dealmaker than Mr. Zander. And with Motorola stock down over the past months, Mr. Brown is likely to face heavy pressure to try something radical to get the stock up. Private equity cos have approached the co regularly through the year about buying the co or parts of it, according to people familiar with the matter.
08:39 CRS Carpenter Tech initiated with a Buy at Citigroup (75.45 )

08:37 AMGN Amgen: ESA franchise absorbs another blow - Baird (55.25 -0.21)

Baird notes Friday’s PREPARE trial announcement seems to support a previous safety signal regarding ESA use in breast cancer. Breast cancer remains a meaningful Aranesp use driver. If deterioration in this setting accelerates, Aranesp revenue by 2009 could take an additional hit of 8-10% from their current expectations. All-in, the firm thinks Aranesp is far from out of the woods and would continue to urge caution on AMGN shares.
08:36 ETFC E*TRADE boosts some rates - WSJ (4.60 ) -Update-

WSJ reports the co, eager to further stabilize its businesses after receiving a capital injection from outside investors, bumped up rates on several of its banking products in an effort to attract more consumer deposits. The increase of as much as half a percentage point on E*Trade Financial’s savings account and certificates of deposit comes even as many other lenders have been lowering rates on consumer deposits, in line with an overall decline in short-term market rates. E*Trade’s move is similar to that of some other financial firms that have been facing a credit crunch and have sought to restore consumer confidence.
08:36 EURX Eurand acquires specialty Cystic Fibrosis company; expects acquisition to be accretive in 2008 (14.85 )

Co announces that it has acquired the SourceCF family of cos for $6.6 mln in cash. The sellers also have the potential to receive up to an additional $3 mln in deferred and milestone payments from EURX after 24 months. SourceCF is a specialty pharmaceutical co focused on serving the needs of cystic fibrosis patients, physicians and care givers. SourceCF generated revs of approx $4 mln in 2006. EURX expects the acquisition to be accretive to net income in 2008.
08:35 ACAS American Capital: WSJ highlights co changing dividend policy (37.61 )

WSJ reports while not highlighting this as a possible problem American Capital unintentionally was first to draw attention to itself with an announcement several weeks ago of a changed “dividend policy.” A yellow flag pops up anytime a co makes any kind of change in something it has always done. The color turns red if the co is viewed largely as a dividend play and then changes the way the dividend is derived. More than the policy change itself, “it’s the timing of the switch” that concerns analyst Scott Valentin of Friedman Billings Ramsey, one of a number of former American Capital fans who have grown increasingly cautious.
08:33 AMAT Applied Materials: Solar cell companies applaud acquisition strategy - Caris (18.83 )

Caris notes AMTA’s growth in the solar segment represents the best opportunity for the multiple to expand. Firm met with several solar cell cos to explore the recent acquisitions made by AMAT and to understand the industry direction. Solar cell cos view AMAT’s acquisition strategy positively. However, they do not view equipment differentiation as a key selling point in the near term due to the silicon shortage.
08:33 DO Diamond Offshore announces four new floater commitments extending until 2014 and 2015 (116.43 )

Co announces that it has received notifications of award for four drilling contracts from Petrobras in Brazil. The commitments for the four semisubmersible drilling rigs could generate combined maximum total revenue of approximately $2.3 billion, in addition to potential performance bonus payments, and represent 22 years of contract drilling backlog.
08:32 CEPH Cephalon announced that the U.S. FDA has accepted and granted priority review designation to the Treanda NDA (74.92 )

Co announces the FDA has accepted and granted priority review designation to the TREANDA New Drug Application for the first-line treatment of patients with chronic lymphocytic leukemia. The co filed the Treanda N.D.A for C.L.L in Sept 2007 and the FDA will make a review decision by the end of March 2008.
08:32 GES Guess: EBIT margin uncertainty looms - Caris (46.93 )

Caris notes GES will report Q3 results tomorrow. Firm is forecasting 3Q EPS of $0.59 vs. consensus of $0.58. GES did not provide 3Q EPS guidance. THey believe consensus will likely prove conservative as they believe Q3 rev growth in excess of 30% will not lead to the degree of operating margin contraction as implied by the consensus est. While the stock dynamics are interesting driven by firm’s above consensus EPS est, they reiterate their Average rating due to the uncertainty in segment operating margins and an inventory position at the end of 2Q that firm believes raises markdown risk potential going forward.
08:30 S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: -0.3.

Nasdaq futures now suggest flat opening after shedding a few points. Boston Fed President Rosengren sees growth “well below potential” for next 2 quarters, but will gradually improve next year. Shares of E*Trade (ETFC) are roughly 15% lower in pre-market trading. Banc of America downgraded the company to Sell from Neutral and lowered its price target to $2 from $9.
08:30 Shipping boss warns of ‘insane’ charter rates - FT

FT reports one of the biggest operators in the booming dry bulk shipping mkt has warned current mkt conditions, where charter rates for ships have nearly tripled in a year, are “insane” and “unsustainable”. In a rare interview, Nobu Su, CEO of Taiwan Maritime Transport, said he was concerned about the situation because it was putting pressure on the industry’s customers to pass on inflationary price increases to customers. Rates for dry bulk ships - which carry bulk commodities such as coal and iron ore - have spiralled because of Chinese demand, the increasing length of voyages needed to bring cargoes to market and hold-ups created by congestion at overstretched ports such as Newcastle in Australia, the world’s busiest coal port. “We believe it’s unsustainable and shipping people forget about their own business, which is providing shipping services,” Mr Su said of the mkt conditions, where owners of the largest, Capesize ships, can command about $180,000 a day to charter their ships. At present, soaring shipping rates threatened to create inflation in every economy in the world, he added. “I think it’s insane,” Mr Su said. “It’s a very, very bad situation.” (Related stocks: DRYS, DSX, EGLE, EXM, GNK)
08:30 HBAN Huntington Banc announces retirement of Marty Adams as President, Chief Operating Officer and Director (15.69 )

Co announces that Marty Adams will retire as president and COO effective Dec 31, 2007. He will also step down as a company director at that time. Adams will serve as a consultant to HBAN for one year following his retirement to assist with matters concerning Franklin Credit Management and other transitional issues.
08:29 MEE Massey Energy: Playing to its strengths - Caris (33.95 )

Caris says with one quarter of the domestic metallurgical coal market and leading Central Appalachian coal reserves and its surface and underground met coal mining expertise, Massey Energy (MEE) is well positioned to exploit the unprecedented growth in the global steel markets. Last week’s announcement of teaming with Indian-based Essar Mineral Resources to develop joint projects focused on coal reserves, coke plants and coal preparation facilities provides global opportunities in the steel, coal, and power sectors, potentially offering MEE unique global growth alternatives.
08:28 SAP SAP AG says declines comment on market talk of possible Microsoft bid for it - Reuters (51.22 )

(MSFT)
08:27 BONDX Bond Watch: Hanging in There

The market is working its way to better levels after suffering a little overbought weakness through the night. Global equities are dipping while bonds are well supported owing in part to Moody’s announcement that it has put about $105B of SIVs on watch to the negative side. The 2-10-yr yield spread has blown steeper to 95.0 in the early hours as curve trade gets a head-start on the week’s event & market risk. Bond prices in the EuroZone & Japan are getting a boost on the risk aversion ticket. Treasuries will get a look at manufacturing at the national level today but not much else. Nothing short of recessionary stats will boost trade though with a corrective sentiment currently infecting action. Prices have trekked up to rival some of the best levels since Mar 03 & that alone will provide strong headwinds into the week. That overboughtness coupled with payroll (Fri) paralysis will likely keep prices on the defensive barring more market mash-ups. The dollar is soft as the yen is finding a bid on the risk aversion/carry unwind theme & the euro bounces from last week’s lows. Spot gold is flat at 783.73 (-0.02) while crude oil is off at 87.88 (-0.83). The economic calendar has ISM index (10) & just Boston’s Rosengren presently. The euro is at 1.4672 & the yen is at 110.2650 while the 10-yr is flat yielding 3.939%. For more bond & economic commentary click here.
08:27 ATVI Activision: Proposed transaction with Vivendi will have industry leading margins due to profitability of MMOG (22.15 ) -Update-

Kaufman notes Activision Blizzard will have estimated pro forma rev of about $3.8 bln. Vivendi’s management believes the deal would create $50-$100 mln in savings and said the new co would aim for pro forma operating income of $1.1 bln and EPS of $1.20 in fiscal 2009. Vivendi’s Worlds of Warcraft makes it much more profitable than Activision’s console publishing business. Blizzard, which operates Worlds of Warcraft is expected to generate operating profits of $520 million on revenue of $1.1 billion.
08:26 INSID Insider trading disclosed in filings after the close Friday

Buyers: Arbitron (ARB 39.85) 10% Owner Pamet Capital Mgmt bought 192,900 shares at $40.21… Candela (CLZR 6.20) 10% Owner J.P. Morgan Ventures bought 95K shares at $6.12-6.21… Contango Oil & Gas (MCF 47.20) Director bought 9K shares at $44.81… Comsys IT Partners (CITP 13.35) 10% Owner Amalgamated Gadget LP bought 151,841 shares at $12.92-13.38… Teton Energy (TEC 4.1 CEO bought 32,9000 at $3.94-3.95; Director bought 20K shares at $3.81-4.12… JMP Group (JMP 7.9 CEO bought 20K shares at $8.05… New Frontier Media (NOOF 4.85) CEO bought 10K shares at $4.95… Patriot Coal (PCX 33.81) Chairman bought 25K shares at $33.50-34.75… Sunair Services (SNR 2.59) 10% Owner bought 157,500 shares at $2.16-3.21… Limited Brands (LTD 20.0 CEO bought 270K shares at $18.38-20.55… Sellers: Perrigo (PRGO 30.90) Director sold 25K shares at $32.07…Stratus Properties (STRS 31.40) CFO sold 12,646 shares at $31.32…LKQ (LKQX 39.71) Officer sold 55,300 shares at $40.09… Robert Half (RHI 26.96) Director sold 400K shares at $26.12… LeCroy (LCRY 8.69) CEO sold 23,151 shares at $8.97… BMB Munai (KAZ 5.66) Chairman sold 64,402 shares at $5.52… Occidental (OXY 69.77) CEO sold 13,607 shares at $71.03… Omniture (OMTR 28.41) Director sold 51,300 shares at $29.51… Phase Forward (PFWD 24.40) Director Atlas Venture Associates sold 700K shares at $23.61… Trimble Navigation (TRMB 37.07) Director sold 17K shares at $36.99… SiRF Technology (SIRF 24.09) Director sold 400K shares at $24.23.
08:25 Lawmakers reach an agreeement on boosting fuel-economy standards - WSJ

WSJ reports after several days of sometimes tense negotiations, lawmakers reached agreement on boosting fuel-economy standards of the nation’s cars and light-duty trucks for the first time in more than 30 years. The deal, struck late Friday night, is the centerpiece of a wide-ranging energy bill expected to move through the House next week and would raise mileage standards to 35 miles a gallon by 2020, a level initially approved by the Senate several months ago. The measure would also require auto makers to maintain a minimum fleetwide mileage average, though it was unclear what that minimum would be. The plan to raise the standards, known as Corporate Average Fuel Economy, or CAFE, was hammered out after discussions between Speaker Nancy Pelosi and House Energy and Commerce Chairman John Dingell, a staunch ally of Detroit’s Big Three auto makers. In addition to hiking mileage standards, the agreement preserves a rule that encourages auto makers to maintain small-car production in the U.S. Detroit’s unionized workforce had lobbied hard for that provision because of its potential to preserve union jobs. Lawmakers also agreed to extend the so-called flex-fuel credit, which encourages cos to make cars that burn ethanol and other cleaner-burning biofuels.
08:25 SCANX Early pre-market gappers

Gapping up: UAPH +25.4%, ATVI +21.9%, ONT +10.7%, ERTS +3.0%, TRB +2.6%, TC +2.2%, ERIC +2.2%, BGC +2.2%, PCU +2.1%, SSL +1.9%, GMO +1.8%, NLY +1.7%, THC +1.6%, TIE +1.6%, CBEY +1.5%, MHS +1.5%, CFC +1.3%, TIF +1.1%, PSPT +1.1%, DT +1.0%, IBM +1.0%… Gapping down: UFS -21.9%, PRKR -18.6%, ETFC -12.0%, PAY -6.3%, GNW -6.2%, AMGN -4.1%, UNH -2.7%, RTP -2.7%, AAUK -2.4%, WEN -2.4%, AG -1.8%, ABC -1.8%, RIMM -1.6%, BHP -1.4%, MET -1.4%, NKE -1.3%.
08:24 ONT On2 Technologies says Unilever has chosen its On2 Flix Publisher (0.75 )

Co announces that Unilever has chosen its On2 Flix Publisher solution to provide enterprise video encoding and delivery services to Unilever’s global community of marketers.
08:24 ARBA Ariba: Expecting an incredibly bullish Analyst Day in Tuesday - Roth (11.87 ) -Update-

Roth notes ARBA will host its first analyst day in years on Tuesday, and they expect that many investors will be shocked at just how good the story has become; firm’s recent feedback from the co has been incredibly bullish, allowing them to predict some likely analyst-day disclosures. Firm expects the co to emphasize that it has emerged as one of the fastest-growing subscription software cos period (70%+ in F2009E) and will likely convince the skeptics that it can sustain its supercharged growth rates for years to come. The co sees impressive operating leverage over the next few years; expecting to achieve an 11% non-GAAP net margin in F2008 and be on track for more than a 15% net margin in F2009.
08:23 REGN Regeneron Pharms upgraded to Above Average at Caris- tgt raised to $23 (21.78 )

Caris upgrades REGN to Above Average from Average and raises their tgt to $23.00 from $16.00 based on the recent signing of the research and development collaboration agreement with Sanofi-aventis (SNY). The firm says the competitive landscape of the VEGF- Trap is still an issue, however, they believe the deal with Sanofi-Aventis (SNY) is transformative for Regeneron shareholders. The new, financial commitment from Sanofi-aventis of $475 mln over the next five years could expedite the advancement of the pipeline.
08:21 MBI MBIA: Short seller sinks teeth into insurer - NY Times (36.51 )

NY Times reports William Ackman of Pershing Square Capital, has been shorting MBIA’s stock since 2002. Sean Egan, the co-founder of Egan-Jones, an independent bond rater, believes that MBIA and the other big bond insurers will be saddled with blns of dollars in losses as collateralized debt obligations stuffed with subprime debt — so-called C.D.O.’s — they have insured continue to go south. So does Mr. Ackman, who believes that as losses pile up and the bond insurer has to pay them off, it will have to shut off the supply of money it sends to the holding co. At the investor presentation he held this week, Mr. Ackman predicted that the holding co could be bankrupt by February, which MBIA says is preposterous. For all the many issues he has raised, his objection really comes down to a single fact: MBIA has a triple-A rating, the highest any co can get — indeed, a rating more normally associated with Treasury bills, which are backed by the full faith and credit of the federal govt. And it’s not just the fact of MBIA’s triple-A rating that drives Mr. Ackman batty; it’s its transcendent importance to the co’s business. As Gary C. Dunton, the co’s CEO, told me recently, “Our triple-A rating is a fundamental driver of our business model.” No triple-A, no business. Nonetheless, MBIA insists that the C.D.O.’s it guarantees are the cr?me de la cr?me — not just plain-vanilla triple-A tranches, but the so-called “super senior triple-As.”
08:20 CHG CH Energy revises Y07 guidance (44.32 )

Co sees Y07 EPS of $2.50-2.70, compared to previous guidance of $2.55-2.80, vs $2.61 single estimate. Co sees earnings contributions from their Griffith fuel distribution subsidiary have been depressed by $0.05 as a result of unusually warm weather at the start of the current heating season; also, earnings expectations have been lowered due to the combined effect of higher corn prices and lower ethanol prices at the Cornhusker Energy Lexington plant.
08:16 Rosengren says efforts to improve FHA could mitigate some subprime problems likely to emerge

08:16 SUPX Supertex initiated with a Buy at Lazard (33.95 )

08:16 WIRES On The Wires

InSite Vision (ISV) announces that it has filed a New Drug Submission with Health Canada seeking regulatory approval to mkt the topical ocular antibiotic AzaSite 1% for the treatment of bacterial conjunctivitis (pink eye) in Canada… Airgas (ARG) announces it has acquired Wright Welding Supply, an industrial gas and welding supply distributor, and two other distributors in Texas and British Columbia. All three transactions closed effective Dec 1, 2007, adding a total of $22 mln in acquired annual sales… Caliper Life Sciences (CALP) launched drug combination services through Caliper Discovery Alliances & Services. These new services will help researchers determine the efficacy of combination drug therapies and identify potentially harmful combinations before therapies enter clinical trials… Comtech Group (COGO) announces that the it has won a series contracts for providing customized module solutions to enable cell phone users to watch TV programs broadcast in China on their mobile handsets… Hythiam (HYTM) announces the PROMETA Treatment Program is featured in an episode of MTV True Life airing on MTV Networks this week… Newfield Exploration (NFX) provides an update on well results from recent extended lateral completions in its Woodford Shale Play, located in southeast Oklahoma’s Arkoma Basin… Titan Pharmaceuticals (TTP) announces the early completion of enrollment in its Phase III clinical study of Probuphine in the treatment of opioid dependence. Enrollment was completed approximately one month ahead of schedule, with results from the study expected to be available by the third quarter of 2008… Freddie Mac (FRE) announces it will not issue a Reference REMIC security during the week of Dec 17, 2007… Baidu.com (BIDU) announces its plan to launch a new advertising product, “Brand-Link,” which will generate a wide range of brand-specific content when Internet users search for the brand names that subscribe to this new product… Cenomed BioSciences, a majority-owned subsidiary of Abraxis BioScience (ABII), announces that it has signed an exclusive collaboration and licensing agreement with ThioPharma to develop and commercialize drug delivery technology, which will be developed for use with certain of Cenomed’s psychiatric and neurological disease programs.
08:16 Fed’s Rosengren says would like to encourage refinancing before problematic resets

08:16 RTI RTI Intl Metals initiated with a Buy at Citigroup (73.44 )

08:16 CHG sees Y07 EPS of $2.50-2.70, from previous guidance of $2.55-2.80

08:15 Fed’s Rosengren says “painful” human toll of subprime crisis likely to worsen as house prices drop

08:15 Fed’s Rosengren sees growth “well below potential” for next 2 quarters, gradually improving next year

08:15 TIE Titanium Metals initiated with a Buy at Citigroup (29.67 )

08:15 KOSN Kosan Biosciences reinitiated with a Buy at Needham- tgt $9 (4.77 )

Needham re initiates KOSN with a Buy and a $9 tgt saying they dropped coverage of KOSN in November 2005, but given the pipeline progress, they are back for another look and encourage investors to do the same. They expect multiple data presentations at upcoming scientific meetings (A.S.H and S.A.B.C meetings in December) and several trial initiations within the next 3-6 months. Given this robust newsflow and the low enterprise value of ~$145 mln in comparison to ~$378 mln of other comparable Phase 3 platform companies, they believe there are several opportunities for upside potential to the KOSN stock.
08:14 RIG Transocean tgt raised to $154 at Stifel (137.29 ) -Update-

Stifel raises their tgt on RIG to $154 from $131. Firm is revising their pro forma estimates to reflect the completion of Transocean’s combination with GlobalSantaFe. For 2008 and 2009 they now forecast the company will generate EPS of $12.69 and $16.44, respectively - about 30% year-over-year growth.
08:13 MDVN Medivation’s candidate Dimebon under heavy scrutiny due to lack of clear data, physicians say - FT Mergermarket (13.60 )

FT Mergermarket reports Medivation’s lead candidate Dimebon for the treatment of Alzheimer’s disease has been met with skepticism as physicians interviewed by Pharmawire believe there is lack of clear data, and the actual AD pathway still remains unclear. Dimebon was first approved in Russia, and was previously an antihistamine. There have been a number of failures in the AD drug development space. “People in the field recognize that Alzheimer’s is a tough disease target, and there’s a lot of uncertainty in this,” said Dr Ron Black, Senior Director for Neuroscience Research at Wyeth Pharmaceuticals. The FDA have clearly said in public meetings that they are not going to give their final view on what kind of evidence will be supportive of a disease modifying drug, added Black.
08:12 PRICE Filings, Offerings, Pricings and IPOs

Filings: Borland (BORL) files for a $200 mln convertible notes offering by selling securityholders… EDAP TMS SA (EDAP) files for a 2.99 mln share ordinary share offering by selling shareholders… Cano Petroleum (CFW) files for a 3.5 mln share common stock offering by selling shareholders… Goodrich Petroleum (GDP) files for a 5.2 mln share common stock secondary offering… Offerings: Empire District Elec (EDE) announces a 3 mln share common stock offering pursuant to it’s effective shelf registration statement.
08:10 BONDX Economic Calendar

ISM index at 10 & auto sales late in the day.
08:09 NICE Nice Systems: Story as solid as ever - RBC (32.58 )

RBC says they came away encouraged on NICE’s vision, strategic positioning, execution and outlook. Commentary from mgmt and their contacts indicate story is as solid as ever with no impact of macro slowdown. And while firm holds no crystal ball on macro issues, historically NICE has continued performing well even amidst slower economic cycles. Their notion is macro concerns are premature and reaction overdone, and view NICE as innocent until proven guilty. Firm believes current levels offer good entry point, a sentiment shared by several local investors they talked to.
08:07 CNI Canadian Natl Rail: Volume growth not quite as good as it looks; fuel to drag in Q4 - RBC (49.04 )

RBC notes the rapid rise in WTI and the higher $CAD are expected to have a negative impact on CNI’s Q4 results. They est that the lag in recouping fuel costs and the higher exchange rate will have a combined $0.03 impact on CNI’s Q4 results. Firm notes the growth in CNI’s forestry segment continues to deteriorate - which is important as forestry represents over 20% of rev base. Results could further deteriorate in the event that the sector takes on extended holiday shutdowns.
08:05 PROFX December edition of Heavily Shorted Stocks

On our Small Cap Focus page, we have published our December edition of Heavily Shorted Stocks. Our goal is not to argue for or against these names. We provide highly shorted names for traders seeking short squeezes and for traders looking to short a negative story. Today, we highlight CTCT and WBMD. We also highlight the 30 Most Highly Shorted Stocks. In addition, we update our list of Stocks with High Short Interest with a 10 mln Share Float or Less. Click here for the report.
08:05 ULTA Ulta Salon initiated with an Outperform at William Blair (25.74 )

08:05 CAM Cameron: RBC believes CAM to outperform oild service group into 2008 (93.23 )

RBC believes CAM will outperform the oil service group into 2008 driven by its exposure to rig equipment and subsea and pipeline infrastructure markets. Firm-wide, orders are 70% international; 30% NAM. Firm notes backlog margins exceed trailing-twelve-months and margins on new orders are higher than existing backlog. Cash use is opportunity driven. They believe the acquisition window has re-opened following two years of intense competition from private equity.
08:05 DNN Denison Mining says joint venture partners to proceed with Midwest uranium project (9.25 )

Co announces the formal decision of the joint venture partners in the Midwest uranium mine project to proceed with the development of the project.
08:04 UCTT Ultra Clean Holdings: Celerity announces it wins Permanent Injunction Against Ultra Clean (14.37 )

Celerity announces today that a federal court has issued a permanent injunction in its patent infringement suit against UCTT. The Court’s order prohibits UCTT from manufacturing, selling and importing any Predator or “colorably similar” products into the US.
08:04 ATVI Activision upgraded to Outperform from Market Perform at BMO Capital (22.15 ) -Update-

08:04 MDTL Medis Tech receives special permit from U.S. Dept of Transportation allowing its 24/7 power pack fuel cell devices to be carried aboard aircraft (12.77 )

Co announces that it has received a special permit (SP -14504) from the U.S. Department of Transportation which authorizes aircraft passengers and crew members to carry up to three 24/7 Power Pack micro fuel cell devices for personal use aboard aircraft on one’s person or in carry-on baggage without being subject to the Hazardous Materials Regulations.
08:03 PAY Verifone announces anticipated restatement for 2007 quarterly financial statements; reports Q4 revs (48.03 )

Co has concluded that its unaudited interim consolidated financial statements for 2007, principally due to errors in accounting related to the valuation of in-transit inventory and allocation of manufacturing and distribution overhead to inventory, each of which affects co’s reported costs of net revenues. Co sees Q4 revs of $238 mln vs $233.55 mln consensus, with Q4 results to be delayed pending the assessments of these errors and restatements.
08:02 PRKR Parkervision responds to Barron’s article “in an effort to correct errors and factual inaccuracies and to clarify information” (7.46 ) -Update-

“In an effort to correct errors and factual inaccuracies and to clarify information that appeared December 1, 2007 in an article in Barron’s magazine entitled, “The Strange Case of Parkervison,” by Bill Alpert, PRKR decided to publicly comment on the article”… PRKR was contacted recently by Mr. Alpert, who indicated he was preparing an article and would like to interview Mr. Jeffrey Parker, CEO & Chairman of PRKR. Although Mr. Parker indicated that he was occupied with business development activities and could not participate in an interview, he did encourage Mr. Alpert to forward his questions… Mike Farmwald and Barb Paldus, who, according to the article, created the website, PV notes, used words such as “false,” “stupid,” and “b.s.” to call into question the validity of the co’s technology. To the best of its knowledge, PRKR is unaware of any request from either Farmwald or Paldus to discuss the d2p technology with co mgmt or to request a visit to the company for a demonstration of the technology. Commenting on the article, “Ethical professionals would not hide behind an anonymously authored website, much less one that has presented so many factually incorrect reports about a technology that they have never seen and don’t understand. If Farmwald and Paldus are truly the authors of PV notes, and if Mr. Alpert has not taken their quotes out of context, it defies any reasonable explanation to understand why they wouldn’t simply solicit the company to conduct basic fact checking.” The co also noted that it is pursuing and investigating all legal avenues and alternatives given the content of and circumstances surrounding this article.
08:02 IWOV Interwoven says Nasdaq selects co to join new internet index (12.28 )

08:01 KWK Quicksilver Resrcs tgt raised to $56 at RBC; growth continues to exceed expectations (50.60 )

RBC raises their tgt on KWK to $56 from $49 due to adjustments to their NAV model including better well performance in the Barnett Shale, the divestiture of its non-core E&P assets, and an increase to their long-term oil price assumptions to $60/bbl from $55/bbl. The co is on-track to meet its original growth expectations despite the sale of 75 MMcfe/d of production from its Michigan, Kentucky and Indiana properties.
08:01 DFS Discover Financial Services to record non-cash impairment charge for Goldfish business; announces $1 bln buyback (17.37 )

Co announces that it expects to record a non-cash impairment charge related to its Goldfish MasterCard and Visa credit card business in the United Kingdom in the quarter ending Nov. 30, 2007. The estimated impairment charge will be equal to all or substantially all of the goodwill and other intangible assets of the Goldfish business, which as of Aug. 31, 2007, approximated $422 million.
08:01 IBM IBM to repurchase up to $1 bln of stock (105.18 )

Open market transactions are in addition to $12.5 bln accelerated share repurchases announced in May. “These stock repurchases are enabled by IBM’s strong, consistent cash flow and are an important way of returning value to IBM shareholders… They are an element of our long-term roadmap for earnings per share growth through 2010 and also represent a good value at today’s prices.”
08:00 RICK Rick’s Cabaret aquires Tootsies Cabaret for $25 mln (17.64 +1.02)

Co announces that it has acquired Tootsies Cabaret, a 47,000-square-foot adult club in Miami Gardens, Florida, for $25 mln. Rick’s Cabaret closed on the transaction Friday, November 30th and assumed management of the mega club on December 1st. Management expects annual revenues from Tootsies will be approximately $18 mln, with annual EBITDA of about $8.8 mln. By closing this transaction a month earlier then originally anticipated, the company believes it will easily achieve the guidance of $52 mln in revenue and $7 mln (or 95 cents per share) in net income for fiscal 2008 that it projected on Oct. 31, 2007.
08:00 AG AGCO Corp downgraded to Hold at Stifel (68.94 )

Stifel downgrades AG to Hold from Buy saying they believe AG is a longer-term operating improvement story, with a good portion reflected in the stock price.
08:00 S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +2.8.

Early indications suggest a slightly higher open. Continued momentum from last week’s rally, a continued downtrend in oil prices (-1.1% to $87.70), and an $18.9 billion technology deal are among the factors keeping sellers at bay. Vivendi has signed a definitive agreement to merge its Vivendi Games business with Activision (ATVI). Through a series of transactions, Vivendi will end up owning 52% of the new company that will be called Activision Blizzard.
08:00 DW Drew Industries initiated with a Sector Perform at RBC- tgt $32 (27.32 )

RBC initiates DW with a Sector Perform and a $32 tgt saying the co has far outpaced R.V industry growth, owing to a successful consolidation model, strong divisional management, and dominant share of the towable R.V chassis market. The firm says near-term concerns reflect weak industry demand and their view that estimates have modest
08:00 U.S. expands scrutiny of home lenders - WSJ

WSJ reports the federal agency that oversees bankruptcy courts has stepped up its scrutiny in recent months of mortgage servicers and lenders, and has sought in-depth information on how cos such as Countrywide Financial (CFC) treat homeowners. Attorneys from the U.S. Trustee Program, a division of the Justice Department, have taken aim at mortgage lenders, servicers and their lawyers in at least six states, including Georgia, Massachusetts and Pennsylvania, since last year, according to court records. The agency is probing representations made to courts about what homeowners owe and the handling of their payments during bankruptcy, both areas in which consumer advocates say there are pervasive problems. Leonard DePasquale, an assistant U.S. trustee from Rhode Island, said in a November hearing in federal bankruptcy court in Pittsburgh that after reviewing cases filed since 2002, “we have a specific and grave concern that Countrywide” is trying to obtain money and property from debtors “under false pretenses.”
07:59 NGAS NGAS Resources: Near-term overhang lifted; focusing on exciting 2008 - RBC (6.20 )

RBC notes NGAS recently issued 4.2 mln shares of equity, or 19% of prior putstanding, at $6/share. The co will use the funds to increase capital expenditures to accelerate drilling on its core assets in Southern Appalachian as well as in the New Albany Shale. Additionally, NGAS plans to test at least two horizontal Devonian wells in Southern Appalachia during 1H08. Firm believes NGAS shares provide a good upside opportunity as it currently trades at a 15-20% discount to its “Hard Net Asset Value” of $7.50/share and provides an additional $3-4/share of low-risk upside and optionality in upside from horizontal Devonian drilling, New Albany Shale activity, and productivity on its recently acquired Eastern Kentucky acreage.
07:59 UAPH UAP Holding acquired by Agrium (AGU) for $39/share in cash (29.91 )

Agrium (AGU) and UAP Holding (UAPH) announces that they have entered into a definitive agreement for AGU to acquire UAPH. Under the terms of the agreement, a wholly-owned subsidiary of AGU will commence a tender offer to purchase all of the outstanding common stock of UAPH for $39/share in cash for an aggregate transaction value of approx $2.65 bln, including an estimated $487 mln of assumed debt. “We anticipate we will be able to generate annual synergies of approx $115 mln by 2010, with a majority of this captured in 2009. We expect that these synergies will be achieved primarily by improved margins on all three crop input product groupings, largely through enhanced purchasing efficiencies. This acquisition is expected to be slightly accretive on an earnings per share basis in the first year and significantly accretive thereafter. Agrium has committed bridge and term loan financing in place to fund the acquisition and our plan is to arrange financing of $1.2 bln in equity, with the balance in public and bank term debt to replace the bridge loan,” said Wilson.
07:58 ETFC E*TRADE: Downgrade details (4.60 )

As mentioned at 6:39 BofA downgraded ETFC to Sell from Neutral and cuts their tgt to $2 from $9 as they no longer believe the value of the ETFC’s retail brokerage business, a dwindling asset (which has lost 17% of assets already), can offset negative value at the bank. The firm says while the A.B.S book is gone, the looming issue for ETFC is its $12 bln home equity portfolio. The firm says the best base they expect another $1 bln addition to reserves, enough to wipe out another year of EPS in ‘08 and worst case is a continued fire sale of assets at ETFC resulting in an outright sale of the H.E portfolio.
07:56 TKLC TEKELEC: On track for solid Q4 - Brean Murray (12.30 )

Brean Murray notes their recent checks with various sources indicate that TKLC is on track to hit the upper end or even exceed its guidance set for 4Q07 and the full fiscal year. Firm expects the co to post its strongest sales, earnings and bookings quarter for the year. Significantly, firm also expects orders to show their third consecutive increase, reflecting improving demand for the co’s TDM/IP transition signaling products and new IAS 2.0 software.
07:55 GORX GeoPharma acquires rights for an early stage diagnostic urine test for ovarian cancer (3.25 )

Co announces that it has signed an agreement with the University of South Florida Research Foundation to acquire worldwide patent rights of a diagnostic technology for early stage detection of ovarian cancer using patient urine samples.
07:55 NCTY The9 Ltd: Wow tracking well, 2008 pipeline looks OK - Brean Murray (25.77 )

Brean Murray notes their research suggests the rebound in WoW continues, as they are seeing further server additions, which should translate into ACU growth. WoW had 308 servers as of last week, an addition of three from firm’s last published update on the number of servers three weeks ago. Continued server additions suggest a ramp-up in the eighth server site. Firm expects the co to add a ninth server site in 1Q08 and potentially a tenth server site in 4Q08 in anticipation of the launch of the next expansion pack in 1H09. Firm continues to believe NCTY is poised to renew the WoW license in 2009. Vivendi’s recent announcement about combining its gaming business with ATVI is unlikely to have negative ramifications for this renewal.
07:54 ADBE Adobe Systems: Solid North American checks - Jefferies (42.14 -0.61)

Jefferies notes 3/4 of the ADBE resellers they spoke with said business grew above 5% sequentially in the November quarter, compared to our 4% total ADBE sequential revenue growth estimate. They think that ADBE’s business remains strong and that consensus estimates will go higher. Also the firm believes Adobe’s broad portfolio of integrated products remains well ahead of MSFT’s offerings (Expression, SilverLight, XPS). Checks suggest a further C.S release to further improve integration between products and have improve performance next year.
07:53 RTP Rio Tinto: BHP bid ‘ballparks away’, RTP CEO says - Daily Telegraph (Australian) (467.48 )

Daily Telegraph (Australian) reports BHP Billiton’s (BHP) takeover offer for rival Rio Tinto was far away from a true valuation of the co, Rio Tinto’s CEO said. Tom Albanese, in Australia for a presentation to investors, said BHP Billiton’s bid to create a mining behemoth was too low to be accepted and that this view was supported by the mkt’s response. Rio Tinto has rejected BHP Billiton’s proposal of three of its shares for every Rio Tinto share. “We’ve seen the market move well past the BHP proposal, which we rejected, and the market to some extent is speaking,” Albanese told the ABC. “It’s (market) basically saying that: ‘Yes, we agree it’s worth a lot more,’” he said. Albanese would not put a figure on Rio Tinto’s worth, but said it was “ballparks away” from the proposal put forward by BHP Billiton, the world’s biggest diversified miner. “I think I’ve referred to a couple of ballparks away,” he said. “I think this is all about value. The business of Rio Tinto has so much inherent value. I think it’s just tremendous. I think that the proposal we received didn’t recognize that value which is why we rejected it.”
07:53 BE BearingPoint files delayed Q3 10-Q; reports Q3 EPS of ($0.32) vs ($0.11) First Call consensus; revs $861.9 mln vs $859.07 mln consensus (3.65 ) -Update-

07:52 PCU Southern Copper initiated with an Overweight at HSBC- tgt $140 (110.65 )

07:52 RSTI Rofin-Sinar Technologies downgraded to Hold from Buy at Brean Murray- tgt $82, based on valuation (91.04 )

07:51 FUQI Fuqi Intl initiated with a Buy at Brean Murray- tgt $13 (8.88 )

Brean Murray initiates FUQI with a Buy and a $13 tgt saying they believe the co is well positioned to benefit from the growing middle-class population and robust consumer spending in China. In particular, the firm believes the unique cultural, social and economic factors that support jewelry consumption in China are sustainable. They see reaccelerated growth in the co’s core jewelry wholesale business, with potential upside from retail expansion.
07:48 KBR KBR Inc.: Upgrade details (39.82 )

As mentioned at 6:39 UBS upgraded KBR to Buy from Neutral and raises their tgt to $47 from $45 to reflect potential awards of major energy and chemicals projects. The firm says KBR’s E&C backlog stands at $7.4 bln, and they estimate project opportunities of at least $15 bln that could be awarded over the next year or two. The firm also expects KBR to deploy some of its $1.1 bln excess cash balance.
07:46 Fitch says severe CDO rating cuts over, “healing” ahead - Reuters

Reuters reports the worst of severe rating cuts of collateralized debt obligations tainted by U.S. subprime mortgages is probably over and 2008 should begin a “healing process,” a senior director at Fitch Ratings said. Deteriorating value of U.S. subprime mortgage debt has resulted in $67 bln of rating cuts of CDOs by Fitch, including top-tier “AAA”-rated debt that now has been lowered on average to “BB”-rated debt known as junk bonds. Asked if Fitch expects further CDO downgrades ahead, Richard Hrvatin, a managing director at Derivative Fitch in New York, said the worst cuts were behind. “I never say never, but I think the answer is the rating action that we’ve taken is meant to be adding stability to the ratings,” Hrvatin said on Sunday, during the Opal Financial Group CDO Summit. “I think the answer to that question is no.”
07:45 NCIT NCI awarded $97.2 mln IDIQ task order on ITES-2S contract (18.14 +0.05)

Co announces that it has been awarded a competitive task order with a base year and two one- year options through the U.S. Army’s Information Technology Enterprise Solutions-2 Services contract. This is a new contract for NCIT and performance will begin Dec 7, 2007. The task order is a single award, Indefinite Delivery/Indefinite Quantity contract. The task order has a ceiling price of $97.2 mln.
07:44 October chip sales rose 5% year-on-year

Worldwide semiconductor sales in October rose to $23.1 bln, an increase of 5% over the $22 bln reported in October 2006 and 2% higher than the $22.6 bln reported in Sept of this year, the Semiconductor Industry Association reported. Sales of $210.5 bln for the first 10 months of 2007 are running 3.9% ahead of the same period of 2006, when sales were $202.6 bln. Year-to-date sales are on pace with the SIA’s November forecast of 3.8% growth in worldwide sales for 2007.
07:44 BE BearingPoint names Edwin Harbach as CEO (3.65 )

Co announces that its Board of Directors has named Ed Harbach president and chief executive officer and a member of the Board of Directors. Harry You is leaving the company to pursue other opportunities and will be succeeded by Harbach
07:42 FRPT Force Protection: Weakness in the name a bit overdone - FBR (10.81 )

Friedman Billings notes FRPT declined by 28% on Friday after news spread that the US Marine Corps is considering reducing its MRAP purchase by one-third, to 2,400 vehicles. That is approx the number of vehicles that the USMC has already ordered, so it would suggest that its participation in the program is now complete. Despite the continued lack of visibility into 2009, firm believes the reaction to the USMC news was overdone–and, for trading-oriented accounts, they would buy the stock heading into the next round of MRAP awards, which firm expects within the next two weeks.
07:42 Citadel’s deal for E*Trade debt may set template for other cos selling bruised assets at a discount - WSJ (4.60 )

WSJ reports ever since debt markets seized up this summer, investors have struggled with the question of how much securities backed by risky mortgages are worth. Now, thanks to Citadel Investment Group’s purchase of $3 bln in debt held by E*Trade Financial, there is at least one answer. Citadel paid an average of about 27 cents on the dollar for these assets. And it received a boatload of E*Trade shares as part of the deal. While seemingly low, the Citadel price might emerge as something of a mkt floor, at least for some of the investments involved. It also might signal that some investors are now willing to step in and make a mkt for these stalled securities. Although it is unlikely that investors would use this floor as a valuation for securities held by Citigroup (C) and Merrill Lynch (MER), it may at least present a worst-case scenario for these portfolios.
07:42 Moody’s may cut ratings on $105 bln of SIVs - Bloomberg

Bloomberg reports Moody’s Investors Service is preparing the biggest credit rating cuts since subprime mortgages contaminated the bond mkt, foreshadowing losses for investments that pay Florida teachers and money mkt funds. Moody’s may lower ratings on $105 bln of debt sold by structured investment vehicles after the net asset values of 20 SIVs sponsored by cos including Citigroup declined to 55% from 71% a month ago, Moody’s said in a statement Nov. 30.
07:40 AMD Advanced Micro upgraded to Below Average at Caris- tgt cut to $9 (9.76 )

Caris upgrades AMD to Below Average from Sell and cuts their tgt to $9 from $10 saying they see few near-term positive catalysts for AMD but the recent sharp correction in the stock combined with significant negative public news flow makes the stock tougher to short. The firm continues to recommend that long-only investors avoid the stock, and suggest that hedge funds pair it against a long in INTC or NVDA as a P.C-related pair trade.
07:40 LAYN Layne Christensen: 3Q08 preview; MinEx driving profits; tgt raised to $62 - Morgan Joseph (56.95 )

Morgan Joseph notes LAYN is expect to report its 3Q08 results on Tues, Dec 4. They expect F3Q08 EPS of $0.57 vs. $0.50 last year and the Street consensus of $0.57. Near 20% rev growth and improving margins in the Mineral Exploration (MinEx) segment should drive Y/Y EPS improvement. On the confe call, they will be looking for commentary on how issues in the residential market are impacting spending from municipal water customers, how long strength in the minerals market can be sustained, any updates on the Chilean project in the Energy segment, and progress toward expanding into the domestic power and industrial water treatment markets. Firm raises thier tgt to $62 from $49.
07:36 ABC AmerisourceBergen issues downside Q1 guidance, reaffirms Y08 guidance, extends long-term relationship with Medco (45.37 )

Co issues downside Q1 guidance, sees Q1 EPS similar to yr ago period, which was $0.62, vs $0.70 consensus; co sees operating rev growth to be below the 5-7% range expected for Y08 due to the negative impact from lower sales of anemia pharmaceuticals, the loss of a large specialty customer because of its acquisition by a competitor, and the co’s loss of a large retail customer in January 2007. Co reaffirms Y08 guidance, sees EPS of $2.77-2.95 vs $2.88 consensus. Co has signed a letter of intent with Medco (MHS) confirming the selection of co as Medco’s prime vendor for PBM mail-order wholesaler services, pending the completion of a new five-year contract.
07:36 PMTC Parametric announces completion of Cocreate acquisition and issues guidance (16.70 )

Co announced it has completed its acquisition of CoCreate Software GmbH, a provider of product development solutions, for approximately $250 million net of cash acquired and excluding transaction fees. “We expect the acquisition will be immediately accretive to our non-GAAP operating margins and earnings.” As a result of the acquisition, PTC has updated its outlook for the first quarter and fiscal year 2008. PMTC sees Q1 EPS of $0.20-0.25 vs $0.23 First Call consensus; revs $235-245 mln vs $237.11 mln First Call consensus. PMTC sees FY08 $1.12-1.22 vs $1.11 First Call consensus; sees revs $1.06 bln vs $1.01 bln First Call consensus.
07:35 WIRES On The Wires

Neurobiological Technologies (NTII) and the Buck Institute for Age Research announces they have formed a partnership to develop a drug to treat Huntington’s disease… Gulfport Energy (GPOR) announces that it has signed a definitive agreement for the right to acquire an approximate 50% working interest in strategic assets in West Texas in the Permian Basin for approx $85 mln… Immunicon (IMMC) announces that it filed with the FDA a request for clearance of the CellSearch Circulating Tumor Cell Kit as an aid in the monitoring of patients with metastatic androgen-independent prostate cancer.
07:34 NKE Nike: Adidas up on talk of Nike, Asics interest - Reuters (65.65 )

Reuters reports shares in Adidas rose more than 2% as traders cited mkt talk that U.S. rival Nike and Japanese sports shoe maker Asics were interested in the German co.
07:34 PNK Pinnacle downgraded to Equal Weight from Overweight at Lehman (27.45 )

07:32 SKM SK Telecom to buy hanaro stake - Reuters (31.67 )

Reuters reports South Korean mobile operator SK Telecom said it had agreed to buy a stake in broadband provider hanarotelecom for 1.09 trillion won ($1.18 bln) in cash, a near 50% premium on pre-acquisition talks.
07:32 ABC reaffirms EPS of $2.77-2.95 vs $2.88 consensus

07:31 PCOP Pharmacopeia announces additional ‘positive’ findings from Phase 1 multiple ascending dose study of PS433540 (4.55 )

Co announces additional results from the co’s Phase 1 multiple ascending dose study of its lead internal product candidate, PS433540. Data demonstrated that PS433540 produced statistically significant, dose dependent increases in plasma-renin activity levels, as well as reductions in systolic and diastolic blood pressure. These findings are in addition to previously reported initial results from the MAD trial that showed all doses of PS433540 to be safe and well-tolerated. This MAD study was designed to evaluate the 14-day safety and tolerability of 50, 100, 250, 500 and 1,000 mg doses of PS433540 in healthy volunteers.
07:31 ABC sees Q1 EPS of $0.62 vs $0.70

07:30 ABC reaffirms Y08 EPS

07:30 AEZS AEterna Zentaris completes the sale of Echelon Biosciences to Frontier Scientific (1.70 )

07:30 STEM StemCells exploring acquisition of Progenitor cell therapy (1.94 )

Co announces it is exploring the acquisition of privately held Progenitor Cell Therapy, a leading provider of cGMP-quality cell processing services. The potential acquisition, the terms of which are still being negotiated by the parties, would combine P.C.T’s rev generating cGMP-quality cell processing and contract manufacturing business with the cell-based research and development programs of STEM. P.C.T. has agreed to a period of exclusivity to allow the parties to complete due diligence and negotiate definitive agreements for the proposed transaction. In consideration thereof, STEM has agreed to make a secured loan of $3.8 mln to P.C.T. to bridge some of P.C.T’s planned capital needs as it pursues its own growth strategy.
07:30 RIG Transocean tgt increased to $160 to reflect the accretion of the merger with GSF and improving outlook - Jefferies (135.92 )

Jefferies increases their EPS estimates and price tgt to $160 from $142 in order to reflect the accretion of the merger with GSF and improving outlook of the global deepwater rig market. Given RIG’s history of consolidation and the co’s significant premium to other offshore drillers, the firm is not ruling out the co potentially making additional acquisitions in 2008.
07:29 VNR Vanguard Natural Resources initiated with an Outperform at Wachovia (16.12 )

07:28 U.S Telecom stocks downgraded to Market Weight at Bear Stearns

07:28 JPM JP Morgan Chase to invest $200 mln in the entertainment industry - WSJ (45.62 )

WSJ reports the co is expected to announce plans to invest $200 mln of its own money in the entertainment industry. The move is aimed at capitalizing on the bank’s powerful franchise in Hollywood, where it and its predecessor cos have been financing films since the era of silent movies. The strategy of investing its own capital comes as J.P. Morgan is seeking to bulk up in an area that has long contributed to the earnings of other Wall Street cos.
07:27 U.S Drug stocks raised to Overweight at Bear Stearns

07:27 PXD Pioneer Natural initiated with an Outperform at RBC (44.57 )

07:26 CVTX CV Therapeutics: Potential new Ranexa indication adds value; tgt raised to $40 - Cantor (8.72 )

Cantor has updated their model of CVTX to account for possible FDA approval of Ranexa in 3Q08 as an oral hypoglycemic agent for the treatment of diabetics with coronary artery disease. On Nov 19, the FDA accepted for review a separate and distinct NDA for this indication based on a significant hypoglycemic effect observed in MERLIN. THe potential FDA approval of Ranexa as an OHA for the treatment of diabetics with heart disease is a great opportunity for CVTX and strengthens its position in partnering talks. Firm raises their one-year price target to $40 (from $36).
07:26 RIMM Research In Motion downgraded to Market Perform from Outperform at Morgan Keegan (113.82 )

07:25 TRS Trimas initiated with a Buy at Merrill- tgt $14.25 (11.10 )

07:25 ERIC Ericsson selected by T- Mobile UK as managed services partner for field operations (24.46 )

The co announces Ericsson and T-Mobile UK, part of Deutsche Telekom, have signed a five-year managed services contract to modernize the T-Mobile UK network and provide managed services with a comprehensive range of professional services. The strategically important contract includes modernization of T-Mobile’s infrastructure, field operations and multi-vendor spare parts management.
07:24 Investment Banks estimates lowered at Deutsche Bank

Deutsche Bank cuts their 2008 estimates by an average of 10% and project a return to levels like 2007 for equities, 2006 for investment banking, 2005 for fixed income, and 2006 for aggregate revenues and earnings. The firm says the big five investment banks (BSC, LEH, GS, MER, and MS) each trade below historical price-to-book ratios but uncertain capital markets probably means meaningful fundamental improvement may take a few quarters.
07:22 NAVI NaviSite: Expect F1Q08 results above ests; AJE being positioned for sale - Merriman (9.31 )

Merriman expects NAVI to report F1Q08 results above our estimates and slightly above the Street. In addition, firm expects the co to provide F2Q08 guidance above their ests and slightly above the Street. Firm expects the co to either maintain or slightly raise FY08 guidance. The site has now been operational for six months and they believe it has proven viable. Mgmt had previously noted that it would give the site six to nine months and if viable would look to sell it. Because of its success, and management’s decision to move ahead and sell the asset at within the next year, firm believes it will be moved into discontinued operations this quarter.
07:21 C Citigroup: At bank, a favorite emerges for the top job - NY Times (33.30 )

NY Times reports the financial giant is closing in on a CEO and the board appears to be leaning toward an insider, according to people briefed on the situation. The inside candidate, Vikram S. Pandit, is a former Morgan Stanley investment banker who joined Citigroup seven months ago, these people said. But they cautioned that no final decision had been made and that the four-member search committee, led by Richard D. Parsons, was reviewing other candidates. The board is hoping that a chief executive can be named within the next week, a person briefed on the situation said. The search has been difficult and no clear choice has emerged, the person said, adding that support on the search committee seemed to be building for Mr. Pandit.
07:19 Berkshire Hathaway is paying $2.1 bln to buy TXU junk bonds from Goldman Sachs, according to report - Reuters

(GS)
07:19 One-month pound Libor soars as banks seek year-end funding - Bloomerberg.com

The cost of borrowing in pounds for a month climbed the most in more than 10 years as banks sought funds to cover their commitments through to the start of 2008 amid a credit squeeze. The London interbank offered rate that banks charge each other for such loans due after the end of the year jumped 63 basis points to 6.72 percent, the highest since December 1998, the British Bankers’ Association said today.
07:18 CBEY Cbeyond Comms upgraded to Outperform from Market Perform at Wachovia (41.37 )

07:18 MELI MercadoLibre profiled in New America section of IBD (42.41 )

IBD reports MercadoLibre — Spanish for “free market” — acts much like eBay does, hosting transactions between users who price and arrange sales themselves. MercadoLibre’s top three countries are also the top three Latin American Web consumers, making up more than 70% of the region’s addressable mkt, according to RBC Capital Markets. It’s still not that much of the overall population though. Just 34% of Argentina’s people have Internet access. Brazil, though numerically biggest, has only 14% penetration. This small base leaves lots of growing room. MercadoPago is the co’s answer to eBay’s PayPal system of electronic payments. Until quite recently, it was available only within MercadoLibre’s site. For the full year analysts polled by Thomson Financial expect profit of 22 cents a share, compared with 3 cents last year. They see 145% growth next year and 56% the year after that. Some uncertainties remain about the future. One of the big ones is just what eBay is going to do. Until a year ago, MercadoLibre and eBay had a noncompete agreement. That’s expired, but eBay still owns a chunk of MercadoLibre’s stock. Some analysts have speculated that eBay might eventually buy its Latin counterpart.
07:17 CVI CVR Energy: Hearing initiated with a neutral at tier 1 firm (22.02 )

07:17 CYTK Cytokinetics: Positive data flow plus attractive valuation equals solid 2008 play - Rodman & Renshaw (4.86 )

Rodman & Renshaw notes CYTK presented positive incremental data today, Sunday Dec 2, 2007 in a poster relating to CK-1827452, its novel small molecule activator of cardiac myosin, at the 47th Annual American Society of Cell Biology (ASCB) held in Washington, DC. The co showed that myocyte contractility induced by CK-452 is unchanged in the presence of beta-blockade. Beta-blockers cause decreases in heart rate, contractility, conduction velocity, and relaxation rate. These data represent an important de-risking event in firm’s opinion. It is important to address the safety and PD profile of CK-452 in combination with other standard therapy such as beta-blockers, loop diuretics (furosemide) and angiotensin-converting enzyme inhibitors (ACEI) or angiotensin receptor blockers (ARB) early in the drug’s development.
07:16 HOC Holly: Hearing initiated with a neutral at tier 1 firm (48.45 )

07:15 Energy bill to add volatility in solar names - Merriman

Merriman notes the House and Senate are poised to resolve a broad energy bill next week in hope of it being signed into law by the end of the year. While fuel efficiency standards and the elimination of oil and gas tax incentives have garnered the lion’s share of headlines, we see two key elements of the bill effecting companies in the solar PV industry: 1) Extension of the Federal Investment Tax Credit (ITC) for Solar PV installations. 2) Establishment of Renewable Portfolio Standards (RPS). The ITC remains a key catalyst for solar PV growth in the U.S., accounting for the majority of domestic subsidies in this high growth sector. Until the cost of solar PV technology can be driven down to parity with U.S. retail electricity rates, domestic subsidies such as the ITC are critical to solar PV growth in this country. (SPWR, FSLR, ESLR, STP, ENER).
07:14 WFC Wells Fargo tgt cut to $30 at FBR; special provision signals higher credit costs in 2008 (32.43 )

Friedman Billings cuts their tgt on WFC to $30 from $36. Firm believes losses on the co’s indirect home equity portfolio may exceed the co’s special provision. Given significant consumer exposure, particularly to home equity loans, firm reduces their earnings ests to reflect their expectation for higher credit costs. Firm reduces their 4Q07 operating EPS est to $0.40 (from $0.67) and their 2008 est to $2.57 (from $2.87). They now expect that WFC will earn less in 2007 than in 2006 and will grow operating EPS 7% in 2008.
07:14 PSPT PeopleSupport: IPVG offers to acquire PSPT for $15 a share - FBR (14.05 )

Friedman Billings believes the offer for PSPT by IPVG is legitimate, and the financing is in place. PSPT announced that the board will be considering this offer, but cautioned investors against making decisions on its legitimacy at this time. They believe this offer could lead to the solicitation of interest from other potential suitors, or simply an outright rejection. Firm believes the initial deal may be rejected and then ultimately replaced with a slightly higher offer from IPVG, or possibly a different suitor.
07:13 November comps benefit from calendar, some from promos - CIBC

CIBC notes November comps will be reported on Wed 12/5 and Thur, 12/6. Given most cos just finished reporting 3Q and many provided Nov comps to date, they expect far fewer surprises this month. Nov comps should benefit from favorable calendar shift TY, yet it won’t be pos news for all. After seeing what the Friends and Family promo did for CBK’s Oct comp, they imagine there’s a chance of an upside surprise for Nov. Similarly, PLCE’s deals couldn’t be beat–a pos for comps, negative for margins. With the Street currently below ARO’s +MSD guidance, stock could gain momentum this wk.
07:13 ARBA Ariba: Analyst meeting could provide catalyst - CIBC (11.87 )

CIBC reiterates their Sector Outperform ahead of ARBA’s analyst day, which could provide near-term catalyst for stock. Overall, they believe ARBA is well positioned for growth as strong backlog and sub. rev growth as well as building FCF generation demonstrate demand for its SaaS spend mgmt offerings is accelerating. With the Procuri deal set to close at the end of the current qtr, expect Ariba to shed some light on the combined product portfolio and also outline its go-to-market strategy in the mid-market. Also expect mgmt to highlight evidence of improving traction with ASN fees moving to a % of sales fee structure.
07:13 MOT Motorola: Positioned for growth and margin expansion - Credit Suisse (15.97 )

Credit Suisse continues to believe that MOT is well positioned for growth and margin expansion through handset product cost reductions and improving growth in other segments; however, firm believes challenges in the handset business are likely to persist near-term. Firm lowers their 2007/2008 rev est. to $36.5 bln/$39.8 bln from $36.8 bln/ $41.0 bln and lowering their 2007/2008 pro forma EPS est (incl. options) to $0.22/$0.77 from $0.24/$0.93. Firm believes Greg Brown has a strong track record of execution in the businesses he has managed at MOT and would note generally positive feedback from customers since he has assumed the COO role. While the impact on long-term product strategy remains unclear, they would hope for more aggressive efforts to leverage development efforts with commercially proven platforms and recently announced partnerships to get compelling 3G products to market more quickly.
07:12 ATVI Activision: Combines with Vivendi games - Credit Suisse (22.15 ) -Update-

Credit Suisse notes ATVI and Vivendi announced intentions to merge their respective games divisions to form the largest third-party publisher. The combined entity will be renamed Activision-Blizzard and the transaction is expected to close by 1H08. The transaction will be accretive to ATVI as Vivendi Games generates operating margin around 20%, vs ATVI in the mid-teens. Activision-Blizzard is targeting pro-forma operating income of $1.1B and PF-EPS in excess of $1.20 in calendar 2009, which assumes $0.20 of accretion. Total rev could reach $4.1 bln by F09 and $5.1 bln by F10 based on current ests. At 23x ‘09 EPS, firm sees considerable long term upside beyond the tender offer price.
07:12 SOHU Sohu.com: Game TLBB continues to grow; raising ests - Susquehanna (57.38 )

07:11 Guests scheduled to appear on CNBC

Angelo Mozilo, Chief Executive Officer of Countrywide (CFC), is scheduled to appear on Squawk on the Street.
07:11 ATVI Activision CEO appears on CNBC to discuss ATVI/Vivendi deal; says deal price is a 31% premium and values ATVI alone at ~$9 bln (22.15 ) -Update-

Says combined market value of ATVI Blizzard will be ~$18.9 bln following the deal. Notes it is a pure coincidence that mkt cap will be about the same as competitor ERTS.
07:07 UNH UnitedHealth reaffirms FY07 EPS of $3.49-$3.50 (vs $3.50 consensus) (55.00 )

Co reaffirms FY07 EPS of $3.49-$3.50 (vs $3.50 consensus). The co also guides for FY08; sees FY08 EPS of $3.95-$4.00 (vs $3.96 consensus), sees FY08 revs of $83 bln (consensus of $79.8 bln). The co anticiaptes strong future performance.
07:05 SGMO Sangamo BioSci appoints H. Ward Wolff as Executive Vice President and Chief Financial Officer effective Dec 3, 2007 (15.37 )

07:04 UNH reaffirms FY07 EPS of $3.49-$3.50 (vs $3.50 consensus); sees FY08 EPS of $3.95-$4.00 (vs $3.96 consensus), sees FY08 revs of $83 bln (consensus of $79.8 bln)

07:04 CALLS Early Research Calls III

Upgrades: Credit Suisse upgrades Telkom SA (TKG 85.99) to Outperform from Neutral… Morgan Stanley upgrades Plains Exploration (PXP 50.41) to Overweight from Equal Weight. Miscellaneous: J.P Morgan adds OmniVision (OVTI 18.62) to their Applied Tech Top three picks list, and removes iRobot (IRBT 16.02).
07:03 CNTF China Techfaith: Awarded Japanese OEM business (5.72 )

Co announces that a Japanese original equipment manufacturer has awarded CNTF original design manufacturer business. The two cos previously worked together in a handset design capacity. CNTF has secured orders for the cards from European and South East Asian markets, and first shipments are expected by the end of Dec 2007.
07:03 GRO Agria reports Q3 EPS of $0.10; revs $9.8mln (12.25 )

Based primarily on the sales orders received to date, Agria expects to generate total revenues in the range of approximately RMB 238 million (US$ 31.8 million) to RMB 253 million (US$ 33.8 million) for the fourth quarter of 2007, representing year-over-year growth in the range of 60% to 70%, respectively, compared to RMB 149 million in the fourth quarter of 2006.
07:02 DM Dolan Media increases membership interest in American Processing Company (26.50 -2.30)

Co that it had acquired an additional 11.32% membership interest in American Processing Company (APC), increasing its ownership to 88.68%. Dolan Media’s wholly owned subsidiary, Dolan APC LLC, paid $15.6 million cash for the interests. The purchase was funded by internal cash and $7 million from its $150 mln revolving credit facility.
07:01 ARWR Arrowhead Research names Dr. Christopher Anzalone as Chief Executive Officer; plans to acquire nanotech co (4.07 )

Co announces appointment of Dr. Christopher Anzalone as its new President and Chief Executive Officer effective 12/1. ARWR is beginning the process to acquire Benet Group, a private equity firm founded and led by Dr. Anzalone as a vehicle to build new nanobiotechnology companies. ARWR’s founder and former CEO will continue to serve as Executive Chairman of the Board.
06:49 MET MetLife issues in line Q4 guidance, issues Y08 guidance (65.59 )

Co sees Q4 EPS of $1.40-1.45 vs $1.44 consensus. Co sees Y08 EPS of $5.90-6.20 vs $6.26 consensus, with an operating return on equity of 13-13.6% and repurchase $2.2 bln in common stock. Co also sees achieving an operating return on equity of 15% by year end 2010. CEO says, “2007 is going to be another strong earnings year for MetLife. Our core businesses are performing extremely well. Total 2007 operating earnings per diluted common share are expected to grow approximately 16% over 2006’s results due to our robust business performance and unusually strong investment results. Our market leadership, combined with our commitment to expand our growth in the U.S. and internationally, has enabled us to deliver strong, consistent growth in a variety of market conditions and environments.”
06:39 Sensex ends up 240pts - The Business Standard

The Business Standard reports the Sensex opened with a positive gap of 184 points at 19,547. After dropping to a low of 19,447, the index zoomed to a high of 19,619 on fresh buying in energy and technology stocks. The Sensex finally ended with a gain of 240 points at 19,603. The market breadth was fairly positive - out of 2,854 stocks traded, 2,084 advanced, 712 declined and 58 were unchanged. The BSE Oil & Gas index soared 3.5% to 12,786. The Metal and Power indices surged over 3% each to 18,281 and 4484, respectively.
06:39 Asian stocks rise; Mitsubishi UFJ leads advance among banks - Bloomberg.com

Asian stocks rose for a third day, led by Mitsubishi UFJ Financial Group and National Australia Bank on speculation the Federal Reserve will cut U.S. interest rates to bolster growth in the world’s largest economy. Japan’s Nikkei 225 Stock Average fell 0.3% to 15,628.97, and the broader Topix was little changed. Most benchmarks across the region rose.
06:39 European mining stocks, Rio fall; Vivendi, WPP Group advance - Bloomberg.com

Bloomberg.com reports European mining stocks declined, following the biggest weekly gain in two months, as copper prices retreated. Rio Tinto Group and Anglo American Plc dropped… National benchmarks fell in 12 of the 18 western European markets. The U.K.’s FTSE 100 sank 0.5%, and France’s CAC decreased 0.3%. Germany’s DAX was little changed.
06:39 CALLS Early Research Calls II

Upgrades: UBS upgrades KBR (KBR 39.82) to Buy from Neutral and raises their tgt to $47 from $45… JMP upgrades Gevity (GVHR 4.25) to Outperform from Market Perform… Wachovia upgrades Discovery Holding (DISCA 24.46) to Outperform from Market Perform… Oppenheimer upgrades Cybex Int’l (CYBI 4.75) to Buy from Neutral and sets a $7 tgt, based on valuation and the co’s move into a new production facility which should result in improved margins, higher product quality and greater production capacity. Downgrades: Morgan Stanley downgrades Chesapeake (CHK 37.85) to Equal-weight from Overweight… BofA downgrades E*Trade (ETFC 4.60) to Sell from Neutral… Lehman downgrades UAL (UAUA 40.94) to Equal-weight from Overeweight…Lehman downgrades Johnson Controls (JCI 38.62) to Equal-weight from Overweight… Lehman downgrades American Axle (AXL 23.12) to Equal-weight from Overweight… Friedman Billings downgrades XenoPort (XNPT 52.59) to Market Perform from Outperform and maintains their $62 tgt, as they believe shares are reflecting additional positive data from Phase III studies of XP13512 in restless leg syndrome. Miscellaneous: Citigroup initiates CVR Energy (CVI 22.02) with a Buy and a $27 tgt… Jefferies initiates Vanguard Natural Resources (VNR 16.12) with a Buy and a $19 tgt saying Vanguard trades at one of the highest yields in the Upstream M.L.P space at 10.5%, well above the industry average of ~7.6%. They believe the yield will converge with the industry average as the co pays the first quarterly distribution on February 14… Keefe Bruyette initiates Farmer Capital Bank (FFKT 28.00) with a Market Perform.
06:32 MCHP Microchip announces a $900 mln convertible jr debentures offering; intends to use up to $625 mln of the net proceeds to repurchase shares of its common stock from institutional investors in negotiated transactions (28.79 )

06:32 IMKTA Ingles Markets, Inc. reports Q4 EPS of $0.61 vs $0.49 in yr ago qtr; reports revs up 3.2% yr/yr to $746.0 mln with no estimates (23.79 )

06:31 HAFC Hanmi Financial names Brian Cho Chief Financial Officer effective December 3, 2007 (9.59 )

06:29 S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: +0.3.
06:29 European Markets

FTSE…6410.30…-22.20…-0.3%. DAX…7866.31…-4.21…-0.1%.
06:29 Asian Markets

Nikkei…15628.97…-51.70…-0.3%. Hang Seng…28658.42…+14.81…+0.1%.
06:22 CALLS Early Research Calls I

Upgrades: Merriman upgrades Bankrate (RATE 39.14) to Buy from Neutral, as they expect, in the near term, RATE to announce price increases across the board effective in January and believe an additional rate cut, if delivered, would provide a boost to website traffic and the refinancing activity that has already picked up since the last cut, while in FY08 the firm sees drivers such as a wave of ARM loan resets in 1H08 and double digit price increases at the start of the year… Baird upgrades Integrys Energy (TEG 51.01) to Outperform from Neutral and maintains their $58 tgt, as they believe multiple uncertainties, particularly from the Illinois rate cases, are adequately reflected in shares. Downgrades: Baird downgrades Virginia Commerce Bancorp (VCBI 12.53) to Neutral from Outperform and lowers their tgt to $14 from $20, as they expect shares will trade on book value as opposed to earnings until a higher level of visibility relative to the housing market and VCBI’s residential construction exposure emerges in the middle of 2008… Baird downgrades Sterling Bancshares (SBIB 12.34) to Neutral from Outperform and maintains their $13 tgt, based on valuation. Miscellaneous: Merriman initiates FUQI International (FUQI 8.8 with a Buy, as they believe the co’s strong brand and established wholesale distribution coupled with the entry into the higher margin retail channel should help it take increasing market share of China’s jewelry market.
06:17 WIRES On The Wires -Update-

On2 Technologies (ONT) announces that Unilever (UL) has chosen its On2 Flix Publisher to provide enterprise video encoding and delivery services to Unilever’s global community of marketers… Digirad (DRAD) announces the signing of a letter of agreement with The Methodist Hospital in Houston; under the terms of the agreement, Digirad and Methodist will provide imaging and reading services, respectively, to primary-care physicians in the Houston area who are seeking to expand their practices with in-office imaging… Range Resources (RRC) announces that its Board increased its quarterly cash dividend on its common to $0.04 from $0.03; dividend is payable on Dec. 31, 2007 (record date Dec. 17).
06:13 GDP Goodrich Petroleum announces 5.2 mln share public offering and capped call option transaction (24.43 )

Co announces that it is launching a public offering for 5.2 mln shares of its common stock, and will enter into a capped call option transaction which will allow them to potentially recoup a portion of the shares sold in this transaction over an average two year period.
06:11 SGXP SGX Pharma submits IND application for SGX523 (4.71 )

Co announces that it has submitted an IND application to the FDA for SGX523. This compound is an internally developed, orally-bioavailable, small molecule inhibitor of the cMET receptor tyrosine kinase. Co expects to begin Phase I clinical trials of SGX523 for solid tumor cancer patients in early 2008.
06:09 RPRX Repros Therapeutics’ lead product Proellex to enter Phase 3 for the treatment of uterine fibroid indications (9.83 )

Co announces the outcome of its Type B meeting held with the FDA on November 30, 2007. The purpose of this meeting was to review results from the clinical trials of Proellex conducted to date and to discuss the initiation of Phase 3 studies. In addition, Repros also discussed conducting clinical trials for a new indication as a short course treatment of anemia due to excessive menstrual bleeding associated with uterine fibroids. During the course of the meeting the FDA agreed that Proellex, indicated as a presurgical treatment for the correction of anemia associated with excessive bleeding due to the presence of uterine fibroids, is acceptable. The agency suggested that this indication would be best considered under a separate IND. Repros will submit an IND to commence two Phase 3 studies for the indication as soon as possible.
05:54 WPPGY Dell in $4.5 bln advertising pact with WPP - Financial Times (63.20 )

Financial Times reports Dell (DELL) plans to consolidate its worldwide marketing, advertising and communications operations into a single new public relations unit led by WPP (WPPGY). The advertising pact is worth $4.5 bln in billings over the next three years. Mark Jarvis, Dell’s chief marketing officer, said WPP would set up a separate co to deal exclusively with the co.
05:47 DB Deutsche reconsidering Virgin’s Northern Rock bid: Paper - Reuters (131.75 )

Reuters reports Deutsche Bank (DB) is threatening to abandon plans to back Virgin Group’s bid for Northern Rock, according to the Sunday Telegraph. Deutsche is one of three banks talking to Virgin about providing 15 bln pounds to repay the BoE. Sources familiar with the matter have said in the past week that financing has yet to be finalized. But the newspaper’s sources said Deutsche now had “serious issues” with Virgin’s takeover proposals, and was concerned that Virgin had issued “disinformation” on its level of involvement. A Deutsche spokesman said the bank was continuing to talk to Virgin, as well as the BoE, Treasury and Financial Services Authority. A Virgin spokesman said: “The consortium is working with its bankers this weekend and early next week to hammer out final details of a financial package.” The Telegraph also said Northern Rock’s biggest shareholder, Jon Wood of SRM Global, was preparing a rescue plan, based around a rights issue that he would underwrite himself.
05:41 NDAQ Nasdaq opens in Beijing, eyes more China listings - Reuters (43.36 )

Reuters reports Nasdaq (NDAQ) opened an office in Beijing on Monday, a move that will let it step up efforts to attract more Chinese firms to list on the exchange. Nasdaq said that having an office would also enable it to forge deeper ties with China’s bourses and regulators. Stepping up its Asia-Pacific presence would complete Nasdaq’s global reach, Eric Landheer, the co’s head of Asia-Pacific, told Reuters in Hong Kong. “The major piece that’s still not there is Asia,” Landheer said, adding: “China is our most important market right now.”
05:38 MRK Addex signs deal with Merck, shares rise - Reuters (59.36 )

Reuters reports Swiss biotech co Addex could receive up to $170.5 mln from a collaboration and licensing deal with Merck (MRK) to develop Parkinson’s disease drugs, it said on Monday, lifting its stock. The two companies aim to develop a new class of oral drugs, initially to treat Parkinson’s and potentially other, undisclosed indications, Addex said. Shares in Addex rose over 8% on the news to trade at 39.50 Swiss francs by 0854 GMT. U.S. Merck will pay Addex $3 mln upfront, plus possible milestones of $106.5 mln for the first product developed for multiple indications, Addex said. Additional milestone payments of up to $61 mln would be payable if the collaboration develops one or two more drugs.
05:20 Morning News Summary

Reuters: Addex signs deal with Merck (MRK), shares rise… Nasdaq (NDAQ) opens in Beijing, eyes more China listings… Deutsche (DB) reconsidering Virgin’s Northern Rock: Paper. Financial Times: Dell (DELL) in $4.5 bln advertising pact with WPP (WPPGY).
05:05 BRKR Bruker BioSciences announces agreement to acquire the Bruker BioSpin Group for $914 mln in cash and stock (9.29 )

Co announces that it has entered into definitive agreements to acquire the companies of the privately held Bruker BioSpin group for $388 mln in cash and for 57.5 mln in Bruker BioSciences shares, valued at $526 mln at the November 28, 2007 trailing 10 trading day average closing price of $9.14 per BRKR share. Excluding transaction fees, the acquisition is expected to be highly accretive for Bruker BioSciences,
04:31 SNTS Santarus licenses rights to GlaxoSmithKline for ZEGERID omeprazole products (2.54 )

Co announces that it has entered into agreements granting exclusive rights to GlaxoSmithKline (GSK) to commercialize prescription and OTC immediate-release omeprazole products for a number of markets in GSK’s International Region (including Africa, Asia, the Middle-East, and Central and South America), and to distribute and sell ZEGERID brand prescription products in Puerto Rico and the U.S. Virgin Islands. Under the license agreement, GSK will be responsible for the development, manufacture and commercialization of Licensed Products in up to 114 countries, excluding the U.S., Europe, Australia, Japan and Canada. In addition, under a separate distribution agreement, GSK will distribute, market and sell ZEGERID brand prescription products in Puerto Rico and the USVI beginning in Q108. GSK will bear all costs for its activities under the license and distribution agreements. GSK will pay Santarus an $11.5 mln upfront fee and tiered double digit royalties, subject to reduction in certain circumstances, on net sales of any products sold under the license and distribution agreements.
03:45 WIRES On The Wires -Update-

QIAGEN (QGEN) and Bio*One Capital, a biomedical investment management co in Asia, announce that they have entered into a joint venture to establish Dx Assays Pte Ltd… ArcelorMittal (MT) and Severstal-metiz announce that they have agreed on the sale of ArcelorMittal Wire Solutions’ 50% stake in steelcord producer TrefilArbed Rus to Severstal-metiz.
01:29 MMR McMoRan Exploration mentioned positively in The Trader - Barron’s (11.76 )

Barron’s reports McMoRan Exploration (MMR) has been drilling at the Flat-rock basin in the GoM (in which it holds a 19% stake), and reporting hopeful “flow rates” from wells there. Production is slated to begin at year end, and until then it’s difficult — risky, even — to handicap the wells’ potential. Meanwhile, the co’s co-chairman has been buying McMoran shares enthusiastically, which offers at least a vote of confidence. A recent round of stock sales has helped McMoRan pay down bridge loans. Brad Ruderman of Ruderman Capital likes management’s track record in drilling production, and the co’s “prodigious cash generation,” which is projected to top $300 mln next year for a FCF yield of nearly 30%. The uncertainty produces disparity even among bullish analysts. For instance, the Street consensus is for McMoRan to earn $0.38 a share in 2008. That suggests shares trade at 31x earnings. But that multiple falls to 12x if one accepts JPMorgan’s ‘08 forecast of $0.97. “We think the street has not yet acknowledged the size of McMoRan’s Flatrock discovery, nor the implications for the rest of its inventory,” argues JPMorgan analyst Brian Kuzma, who has an 18 price target on the stock. He calls the pullback “an opportunity for investors willing to learn McMoRan’s complicated story.”
01:28 PRKR Parkervision mentioned negatively in Barron’s (9.83 )

Barron’s reports Parkervision (PRKR) has finally run up against investors with the technical savvy to measure the stock’s worth. Scientist entrepreneurs Barb Paldus and Mike Farnwald have challenged Parkervision’s claims of a revolutionary radio amplifier technology. “Once in a while, you stumble across a company with technical claims so outrageously false or stupid,” says Farmwald, “that you feel you have to do something about it.” What he’s done is short the stock, convinced that ParkerVision is worthless. His conviction appears well-founded. He’s had the world’s leading experts on radio power amps examine ParkerVision’s patents. He’s talked to the decision makers at companies where ParkerVision has pitched its technology. No one has seen credible evidence that it works. “For these guys,” reports Farmwald, “ParkerVision is just a bad joke that won’t go away.” ParkerVision’s recently-announced collaboration with ITT (ITT) for military radios has already run aground, although ParkerVision’s September-quarter report still predicts $25 million in payments from ITT. Barron’s was told that Chief Executive Jeff Parker was too busy to talk, but he had time to write a two-page letter saying that ParkerVision’s technologies “should not be confused with or compared to” traditional radio devices. The co has one patent on its latest wireless technology and expects to get more. Unlike market leaders RF Micro (RFMD) and Skyworks (SWKS), ParkerVision hasn’t published technical specs for its amplifiers working in a realistic radio signal environment. It’s never reported in a peer-reviewed journal or conference. Jeff Parker’s letter says his firm will add technical data to its Website “in the near future” and plans to present at a technical conference in the coming year.
01:26 Trans-Atlantic deregulation could benefit Continental, Delta and US Airways and negatively impact AMR - Barron’s

Barron’s reports that due to the deregulation of trans-Atlantic routes, U.S. carriers like Continental (CAL), Delta (DAL) and US Airways (LCC) could benefit as they are no longer prohibited from London’s Heathrow Airport. At the same time, British Airways (BAIRY.PK), believed to get as much as 60% of its operating profit from trans-Atlantic flights, is sure to face serious challenges. American Airlines (AMR), which has a bigger presence at Heathrow than any other U.S. carrier, will face competition as well. As the skirmishing spreads, it could well touch off a fresh round of aviation mergers in Europe, following the successful union of Air France (AKH) and KLM. And the emergence of fewer but bigger players in Europe could, in turn, accelerate consolidation among major U.S. carriers. “Open skies is already having a major impact, even though it’s hard to define exactly what the impact will be in terms of revenues and profits,” says Ray Neidl, an airline analyst with Calyon Securities. “What is clear is that there will be more competition.” It may take some time for the changes to become evident. Though Heathrow will be opened legally to all airlines, in practical terms it will be hard for newcomers to break into, at least in the short term. British Airways is clearly the most threatened by the new scenario; it’s difficult to see how the co won’t lose business. Yet BA professes to be unfazed. AMR could also face serious turbulence. Since the airline lacks extensive Pacific operations, where demand is strong, any new competition over the North Atlantic will hurt. Delta is in a much better position to profit from Open Skies. Despite lack of Heathrow access up to now, the airline is the U.S. leader in trans-Atlantic operations, and a recent pact with Air France will only work to enhance that.
01:23 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Infinera (INFN), E*Trade (ETFC) and Anthracite Capital (AHR).
01:23 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Abbott Laboratories (ABT), Southern Copper (PCU), Freeport-McMoRan (FCX), Nordstrom (JWN), Annaly Capital Management (NLY), Anadarko Petroleum (APC), Apache (APA), Devon (DVN), XTO Energy (XTO), Trane (TT), Northern Trust (NTRS) and State Street (STT).
01:21 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Friday’s edition, Jim turns bullish on financials including Wachovia (WB), Bank of America (BAC), Citigroup (C) and preferred shares of Countrywide (CFC). Also, Annaly Capital Mgmt (NLY) looks better as the Fed cuts rates, in his view. Next, he suggests Thomson Creek Metals as a play on molybdenum. Thompson Creek (TC), the fifth-largest producer of moly, is a speculative stock because it is totally dependent on the price of the chemical. Finally, he claims Tenet Healthcare (THC) is a long-term buy and believes it is showing signs of turning around. Tenet just signed on 845 new doctors, Cramer said. This should mean more business and better numbers.
01:20 WIRES On The Wires

New Jersey Resources (NJR) announces that it will delay filing its annual report on Form 10-K for the FY ended September 30, 2007, with the SEC in order to allow for the completion of a review of the accounting treatment for its derivative instruments under Statement of Financial Accounting Standards 133 “Accounting for Derivative Instruments and Hedging Activities”… Lincoln Electric Holdings (LECO) announces that it has acquired the assets and business of Vernon Tool Co, Ltd., a privately-held manufacturer of computer-controlled pipe cutting equipment used for precision fabrication purposes; co expects that the acquisition will not have a material impact on earnings in the first year… Elbit Systems Ltd. (ESLT) announces that its subsidiary, Cyclone Aviation Products Ltd., was awarded a contract to supply the U.S. Navy 330-gallon Fuel tanks to be installed on its F-18’s; the first phase of this contract amounts to $2.4 mln and the total value is estimated at approx $60 mln.
01:16 JAKK Federal lawsuit against JAKKS Pacific by WWE to be dismissed (25.24 )

The Federal court has issued an order stating that it will dismiss the lawsuit against the co, its officers and other defendants in the federal lawsuit initiated by World Wrestling Entertainment. The judge in the action captioned World Wrestling Entertainment, Inc. v. JAKKS Pacific, et al., in the U.S. District Court for the Southern District of NY, stated in his order that the Court “has determined that it will grant Defendants’ motions to dismiss Plaintiff’s Amended Complaint”, and that a “comprehensive opinion” “will be issued in short order” in which “the reasons for this decision are explained in detail.”
01:14 EGBN Eagle Bancorp and Fidelity & Trust Financial sign definitive merger agreement (12.51 )

Co and Fidelity & Trust Financial, parent of Fidelity & Trust Bank, sign a definitive merger agreement. The transaction is subject to regulatory and shareholder approvals and the satisfaction of other conditions, as set forth in the merger agreement. The combination is structured as a stock-for-stock exchange, under which Fidelity’s shareholders will receive 0.9202 shares of Eagle common for each share of Fidelity common owned, subject to possible reductions under certain circumstances set forth in the merger agreement. Based upon the closing stock price for Eagle Bancorp on November 30, 2007, the aggregate value of the transaction would be $48.8 mln, or $11.51 per share of Fidelity common stock. EGBN expects that the transaction will be accretive to Eagle Bancorp earnings in 2009.
01:09 MYL FDA issues approvable letter for Nebivolol for the treatment of hypertension (14.38 )

Co and Forest Labs (FRX 38.55) announce that Mylan has received an approvable letter from the FDA in response to its NDA for nebivolol (proposed brand name Bystolic, a beta blocker under review for the treatment of hypertension.) In the approvable letter the FDA indicated that a recent inspection of a backup manufacturing facility in Belgium uncovered deficiencies and that final marketing approval for nebivolol would be contingent upon satisfactory resolution of these deficiencies. The approvable letter did not raise any questions related to safety or efficacy of nebivolol. At this time, the companies and the FDA have agreed upon product labeling text. Cos anticipate a quick resolution to this issue and Forest plans for a Jan 2008 launch meeting for Bystolic.
01:04 ATVI Vivendi and Activision to create Activision Blizzard (22.15 )

Co and Vivendi announce that they have signed a definitive agreement to combine Vivendi Games with Activision. On closing of the transaction, Activision will be renamed Activision Blizzard and will continue to operate as a public co under the ticker ATVI. Under the terms of the agreement, Vivendi Games will be merged with a wholly owned subsidiary of Activision. In the merger, shares of Vivendi Games will be converted into 295.3 mln new shares of Activision common. Based on the transaction price of $27.50 per share of Activision common stock, this implies a value of approx $8.1 bln for Vivendi Games. Concurrently with the merger, Vivendi will purchase 62.9 mln newly issued shares of Activision common at a price of $27.50 per share for a total of $1.7 bln in cash. As a result of these transactions, Vivendi will own an approx 52% ownership stake in Activision Blizzard on a fully diluted basis. Within five business days after closing the transaction, Activision Blizzard will launch a $4 bln all-cash tender offer to purchase up to 146.5 mln Activision Blizzard common shares at $27.50 per share. In addition, Vivendi has agreed to acquire from Activision Blizzard additional newly issued shares for up to an additional $700 mln of Activision common at $27.50 per share, the proceeds of which would also be used to fund the tender offer. The transaction is expected to be immediately accretive in its first year post-closing for Activision’s stockholders and slightly accretive for Vivendi’s stockholders. The transaction is expected to be at least $0.20 accretive to Activision stockholders in calendar year 2009.
00:56 LEN Lennar and Morgan Stanley Real Estate announce the formation of a strategic land investment venture (15.84 )

Co and Morgan Stanley Real Estate, an affiliate of Morgan Stanley (MS), announce that they have formed a strategic land investment venture to acquire, develop, manage and sell residential real estate. Concurrent with its formation, the new investment venture acquired a diversified portfolio of land from Lennar. The properties acquired by the new entity consist of approximately 11,000 homesites in 32 communities located throughout the country. The land portfolio includes a mix of raw land as well as partially and fully developed homesites in both active and future communities. The communities are located in CA, CO, FL, IL, MD, MA, NV and NJ. Lennar acquired a 20% ownership interest and 50% voting rights in the investment v