Data Feed

08:43 AAPL Apple’s Leopard to boost Mac sales while Dell, HP slump, according to report – AppleInsider (188.54 -5.67) -Update-

AppleInsider reports Mac OS X Leopard will drive Apple computer sales to record levels in the next few months while both DELL and HPQ are mired in sinking or largely stagnant demand, according to a new report from ChangeWave Research. “Over the next 90 days, Mac laptop and desktop sales to consumers will remain the biggest growth story in the PC industry,” ChangeWave explains.
08:42 C Citigroup shares haven’t bottomed out, Citi profit deteriorating, dividend may be cut according to Morgan Stanley- Bloomberg (33.23 ) -Update-

Morgan Stanley recommends shorting Citigroup stock
08:42 PGR Progressive says net premiums written for Nov fell 5% YoY to $912.8 mln

…
08:41 SWIM Investools: Reports strong Nov metrics; see potential to 4Q07 and FY08 ests – Merriman (16.85 ) -Update-

Merriman notes SWIM’s 4Q07 is tracking ahead of their expectations. Firm continues to argue for $20-23 stock due to ests upside, acceleration of EBITDA growth, expansion of margins, and valuation multiples expansion. 4Q07 appears to be tracking ahead of firm’s expectations – their projections were based on DARTs of 37,700; however, both Oct and Nov were well ahead of that. As a result, firm believes 4Q07 thinkorswim rev could be approx $3-4 mln ahead of their $37.8 mln est, which already reflected growth of 16% Q/Q and 116% Y/Y. This should also have a positive impact on FY08 ests as well.
08:40 MPG Maguire Properties upgraded to Neutral from Sell at Merrill (25.26 ) -Update-

08:38 MOT Motorola to restart cooperation with Taiwan smartphone makers – DigiTimes (16.18 )

DigiTimes reports Motorola has recently made frequent contact with Taiwan handset makers and expects to restart cooperation over smartphones, according to sources at Taiwan handset makers. The makers contacted include Compal Communication, Chi Mei Communication Systems (CMCS) and Arima Communications, while the earliest shipments are expected to be out in the second quarter of next year, the sources added. Motorola is planning to outsource Windows Mobile platform 3.5G handsets to Taiwan makers, aiming to reduce retail pricing to under $350.
08:38 NUAN Nuance Communications: Equity raise could put pressure on shares; buyers on weakness – FBR (21.11 )

Friedman Billings notes NUAN filed an offering in which the co plans to sell 9.6 mln shares, with an additional 4.8 mln being sold by Warburg Pincus and another 600,000 being sold by members of NUAN’s mgmt. First, on the NUAN front, the co will be using roughly half of its raise to pay down its debt load, while using the other roughly $100 mln to keep in its treasure chest for M&A and other corporate purchases. Firm calculates the deal to be neutral to their FY08 pro forma EPS est. Firm believes the Warburg Pincus part of the offering will be “front and center” for investors digesting news this morning. While Warburg reducing its stake in NUAN is a “negative headline,” firm cautions investors not to read too much into this sale, as Warburg is only selling roughly 15% of its total holdings.
08:37 AUO AUO reportedly to install 8.5G line in second 7.5G plant – DigiTimes (18.45 )

DigiTimes reports the co may set up an 8.5-generation production line at its second 7.5G facility, according to today’s Chinese language Economic Daily News. AUO’s second 7.5G line will see equipment move-in after the Lunar New Year with volume production set in the middle of next year, according to the EDN. The second 7.5G line will have a designed capacity of 60,000 units a month, added the paper, which indicated that the co will set up an 8.5G line at its second 7.5G plant with a monthly capacity of 40,000 units initially and pilot run to commence at the end of 2008.
08:37 MMM 3M sees FY08 EPS of $5.44-5.47 – Bloomberg (84.65 )

Co issues in-line guidance for FY08 (Dec), sees EPS of $5.44-5.47 vs. $5.43 First Call consensus.
08:35 SDBT SoundBite Communications initiated with a Buy at Needham – tgt $10 (7.00 ) -Update-

Needham initiates SDBT with a Buy and a $10 tgt saying they believe SoundBite has the potential to generate substantial investment returns for investors. In a tough tape the firm says, the co priced below its originally filed range and is valued at a 75% discount to their 10 stock subscription model universe. There are no shortcut “valuation catalysts” other than good execution; something they expect from this on-demand automated voice messaging software firm. The firm says they recognize the stock’s modest liquidity, but at some point 35% top-line growth and an attractive valuation will almost certainly result in a meaningfully higher stock price.
08:33 TKO Telkonet announces new CEO and COO (0.98 )

CO announces that Jason Tienor has been named President and Chief Executive Officer, and Dottie Cleal has been promoted to Chief Operating Officer effective immediately.
08:33 MEH Midwest Air Group reports Nov available seat miles of 545,703, up 21% YoY (15.21 )

Co reports that A.S.M.s are up 21% YoY, and Service Revenue Passenger Miles are up 14.2%. Total available seat miles are up 21%.
08:32 SBUX Starbucks coverage transfered with a Buy at ThinkEquity- tgt $30 (21.90 )

ThinkEquity transfers coverage of SBUX and maintains their Buy and $30 tgt saying with the recent decline in the SBUX share price, they see significant upside from current levels. The firm believes that the co’s first national ad campaign could help drive U.S. same store sales growth, as well as new store productivity. They also say substantially higher dairy prices are already priced into many models. Any relief could help gross margins to exceed expectations.
08:32 S&P futures vs fair value: +11.2. Nasdaq futures vs fair value: +19.3.

Trade Balance for October came in at -$57.8B, compared to last month’s reading of -$57.1B. Economists expected the trade balance to be -$57.0B. Futures reaction was muted, as they continue to suggest a significantly higher start.
08:31 AAPL Apple announces television programming now available on the iTunes Store in Canada (188.54 )

08:31 Airlines predict profit slump on fuel, U.S. demand – Bloomberg

Bloomberg reports airline earnings will fall 11% next year because of higher oil prices and a U.S.-led slump in demand, the Intl Air Transport Association said, lowering its profit forecast for the second time in three months. The decline will occur after carriers report an estimated $5.6 bln in net income this year, the industry’s first profit since 2000, IATA chief economist Brian Pearce said at a news conference. The group represents 243 carriers. “We’ve seen the U.S. housing market go into freefall,” Pearce said. “That’s very negative for consumer sentiment and for passenger sentiment in markets connected to the U.S.” IATA cut its 2008 global profit estimate to $5 bln from $7.8 bln, after reducing the estimate from $9.6 billion in Sept. The association left this year’s forecast unchanged at $5.6 bln.
08:31 CPE Callon Petroleum agrees to sell non-core royalty and mineral interests for $61.5 mln (14.68 )

Co announces that it has signed a Purchase and Sale Agreement providing for the sale of certain non-core, non-operated royalty and mineral interests for $61.5 million. The proposed sale is effective December 1, 2007 and is subject to customary closing adjustments. The buyer is Indigo Minerals LLC, a private company based in Houston, Texas, and the transaction is expected to close before year end.
08:31 WM Washington Mutual prices offering of 3.0 million shares of convertible preferred stock (17.73 )

Co announced today that it has priced a public offering of 3,000,000 shares of 7.75% Series R Non-Cumulative Perpetual Convertible Preferred Stock with a liquidation preference of $1,000 per share, resulting in an aggregate liquidation preference of $3.0 bln. The transaction was increased from its initial announced size of 2,500,000 shares. The company expects the offering to generate net proceeds of approximately $2.9 bln, after expenses and underwriting discounts and commissions. The company intends initially to contribute up to $1.0 bln of the net proceeds from this offering to Washington Mutual Bank, its principal bank subsidiary, as additional capital, and retain the remaining net proceeds at the holding company for general corporate purposes. The company expects the offering to close on or about December 17, 2007.The Series R Preferred Stock will pay, when and if declared by the company’s board of directors, dividends in cash at a rate of 7.75% per annum, payable quarterly. The first dividend payment date will be March 15, 2008. Each share of the Series R Preferred Stock will be convertible at any time, at the option of the holder, into 47.0535 shares of common stock of the company, which represents an approximate initial conversion price of $21.25 per share of common stock.
08:31 ECONX Import Prices ex-oil +0.7%, prior +0.5%

08:31 OXPS OptionsXpress reports key monthly performance metrics for Nov ‘07; DARTs 55% higher than Nov ‘06, slightly lower than Oct ‘07 (30.77 )

Co announces monthly performance metrics for Nov. Highlights for the month included: 1) daily average revenue trades (DARTs) of 44,500 – 55% higher than Nov 2006, slightly lower than Oct 2007; 2) net new customer accounts of 5,300. Ending customer accounts of 258,100 – 27% higher than Nov 2006, 2% higher than Oct 2007; 3) ending client assets of $5.8 bln – 25% higher than Nov 2006, 4% lower than Oct 2007; 4) ending margin balances of $200 mln – 51% higher than Nov 2006 and 2% higher than Oct 2007
08:30 FSS Federal Signal announces retirement of President and CEO (11.84 )

Co’s Board of Directors said that Robert Welding will retire from the co on January 1, 2008. He has resigned from his position as president and chief executive officer. The Board has appointed James Goodwin as interim president and chief executive officer, while the co conducts a search for a replacement. Goodwin has served as a board member of Federal Signal for two years, and was formerly the chairman and chief executive officer of United Airlines.
08:30 TWTC Time Warner Tcom downgraded to Market Perform from Outperform at Raymond James (22.53 )

08:30 ECONX Import Prices m/m +2.7% vs +2.0% consensus, prior revised to % from +1.8%

08:30 ECONX Trade Balance -$57.8 bln vs -$57.0 bln consensus

08:29 LCI Lannett receives FDA approval for Phentermine (3.35 )

Co announces it has received approval from the FDA for the co’s supplemental Abbreviated New Drug Application of Phentermine Hydrochloride Capsules 30 mg. The co expects to commence marketing this product immediately.
08:29 CBD Co. Brasileira names new CEO – Reuters (37.59 )

Reuters reports Brazilian retailing giant CBD said it named an executive known for turning around struggling cos, Claudio Galeazzi, as its new president. Galeazzi will replace Cassio Casseb, who was fired on Monday after just two years on the job because of strategic differences with the board of directors. Galeazzi, 67, will occupy the post immediately, CBD said in a statement. He has extensive experience in Brazil’s retail sector in well-known chains like Vila Romana and Lojas Americanas. Galeazzi’s objectives for 2008 include boosting sales, continuing to cut costs and delivering better financial results, CBD said.
08:27 BONDX Economic Reminder

Data trade balance, import/export prices (8:30) & the budget statement (14)
08:27 Trial of cholesterol drug gets house scrutiny – NY Times

NY Times reports a Congressional committee is investigating MRK and SGP for their handling of a critical clinical trial of Zetia, their blockbuster cholesterol-lowering drug. On Tuesday, the House Committee on Energy and Commerce demanded more information about delays in the trial, which was completed in April 2006 but whose results have not yet been released. In a letter to Merck and Schering, the committee’s top two members asked officials at both cos to agree to talk to investigators and said both cos should retain important documents about the trial, called Enhance. Independent scientists have viewed Enhance as crucial because it is the first trial that would answer whether Zetia’s ability to lower cholesterol has real biological benefits for patients. The results might also help answer nagging questions about Zetia’s safety.
08:26 INSID Insider trading disclosed in filings after the close yesterday

Buyers: Exide Technologies (XIDE 6.99) 10% Owner 10% Owner Tontine Capital Mgmt bought 72,900 shares at $7.13… Sally Beauty Holdings (SBH 9.98) Director bought 25K shares at $10.39-10.70… Waste Services (WSII 9.11) 10% Owner Westbury Trust bought 82,770 shares at $9.19… American Express (AXP 54.56) Director bought 3,500 shares at $57.12… Esterline Technologies (ESL 51.14) Director bought 2K shares at $51.90… Reliv International (RELV 7.91) 10% Owner bought 80K shares at $7.80… Syntax-Brillian (BRLC 2.70) Director bought 150K shares at $2.68… Affiliated Computer Services (ACS 45.03) Director bought 4,400 shares at $45.19…. Citadel Broadcasting (CDL 2.06) Director bought 50K shares at $2.00… Accuray (ARAY 15.20) Director bought 20K shares at $15.36… Neurobiological Technologies (NTII 3.00) 10% Owner Highland Capital Mgmt bought 203,300 shares at $2.99… Sellers: Vyyo (VYYO 3.89) 10% Owner Goldman Sachs sold 1,651,982 shares at $3.97… Digital Realty Trust (DLR 40.00) CFO sold 50,713 shares at $39.03; Officer sold 49,777 shares at $39.12… Dril-Quip (DRQ 56.50) Co-Chairman sold 90,900 shares at $57.31-58.56… Cephalon (CEPH 75.98) Officer sold 61,043 shares at $78.73… UnitedHealth (UNH 57.07) Director sold 25K shares at $57.79… Cerner (CERN 58.17) Officer sold 27,100 shares at $59.41… Falconstor Software (FALC 11.25) CEO sold 100K shares at $11.98… Synchronoss Technologies (SNCR 38.79) CEO sold 10,250 shares at $36.60… Horsehead Holding (ZINC 18.38) 10% Owner Goldman Sachs sold 2,332,692 shares at $17.62… Synopsys (SNPS 26.19) Director sold 37K shares at $27.37.
08:26 LRCX Lam Research: Acquisition of SEZ a strong building block for the future – Caris (45.13 ) -Update-

Caris notes LRCX will acquire SEZ Group for $447 mln net of cash. SEZ is the leading supplier of single wafer clean technology and is headquartered in Zurich, Switzerland, with their primary facility in Villach, Austria. The all cash transaction is expected to close in the March 2008 quarter and is expected to be neutral to slightly accretive in 2008. They view the acquisition as the best way to capitalize on the potential growth in the single wafer wet clean market but margins will suffer in the near term. Firm cuts their tgt to $62 from $66.
08:26 BONDX Bond Watch: Off

Trade has been giving back the majority of what they snuck back yesterday on its exaggerated run up. The market remains susceptible to holiday type volumes, overstating any directional moves. The market has come to realize there are other options for the Fed as far as credit & liquidity are concerned. They can go & mess with the discount rate whenever, while cash injections are also up to their discretion. The market will be easily manipulated from here on in to yr-end, while fewer active players punch up responses to any action (or tape-bombs). Global bonds are off also in corrective action. The curve has spun flatter but is stuck in consolidative trade with the 2-10-yr yield spread now 98.9. The buck is off some with the euro a touch better after a brief, early run-up while the yen suffered on further carry trade action. Gold is gaining as 809.21 (+12.23) in currency confusion while crude has abid in front of inventories. Data up has trade balance, import/export prices & the budget statement. There may be inadvertent Fed-speak via treasury spokespeople but nothing official. The euro is 1.4694, the yen 111.2900 & the 10-yr is -23/32 yielding 4.063% (click here for more)
08:24 VIT VanceInfo Tech IPO prices mid-range; provider of IT outsourcing services in China (8.50 )

VanceInfo Technologies (VIT), a provider of IT services and software development in China, prices its IPO at $8.50 per ADS, in the middle of its expected $7.50-9.50 range. Each ADS represents one ordinary share. VIT is ranked among the top three Chinese offshore software development providers for the North American and European markets. Its services include R&D, enterprise solutions, application development and testing. Targeted industries include technology and telecom (together these represent a majority of revs) as well as financial services, manufacturing, retail and distribution. With over 3,000 professionals, VIT operates a number of offshore development centers in China. Its largest customers are Microsoft and IBM, each of which account for more than 15% of revenue. Other clients include Citibank, HP, Motorola and TIBCO. Customers have increased significantly from 66 for 2004 to 187 thus far in 2007. Businesses are outsourcing a growing portion of their IT processes in order to lower costs and focus more on core competencies… The co is profitable and posted 1H07 revenue of US$25.4 mln, up 128% yr/yr, with 14% operating margin…. Briefing Note: There are a lot of publicly traded Indian outsourcing stocks (EXLS, INFY, SAY, WIT, WNS) but this is the only Chinese one we can find so it will be interesting to see how it does. The Indian outsourcing stocks have been pretty lackluster, mostly trading sideways over the past year. Also, recent IPOs (G, VRTU) have been disappointing. This is a 7.65 mln ADS deal led by Citigroup and Merrill. Jefferies and Susquehanna were also invovled. (IPOXX)
08:24 A ’subprime’ gauge, in many ways? – WSJ

WSJ reports when UBS wrote down its subprime-mortgage investments by an additional $10 bln this week, an obscure and sometimes maligned credit-mkt index played a key role. The index, called the ABX, tracks the value of securities backed by subprime home loans. People familiar with the matter say UBS looked to the ABX as a guidepost in determining values for its holdings. The development underscores the importance of this index in the subprime-mortgage crisis. It also raises questions about whether the market is sending the right signals about the severity of mortgage-debt problems. Some portions of the ABX are down as much as 79% this year; some analysts think actual losses may not be as severe as the index implies. Morgan Stanley and Citigroup have cited the ABX’s dive as a factor in giant write-downs in recent weeks. Rating services and bond insurers are keeping a close eye on it, and many hedge funds have used it to make bets against housing. Some critics say the ABX captures a narrow slice of the mortgage mkt and is prone to bets to the downside that depress it.
08:23 IPSU Imperial Sugar reinitiated with a Sell at BWS Financial- tgt $9 (21.76 )

BWS Financial reinitiates coverage of IPSU with a Sell and a $9 tgt saying the fundamentals have deteriorated significantly since they dropped coverage, but the stock continues to trade at a premium to historical PE levels. The firm notes the Q4 results had one-time benefits included in the numbers that overshadowed the worsening landscape for IPSU. Firm says in Q4 IPSU had gross margin of 8.5% and is likely to see further pricing erosion in the coming quarters.
08:21 SPWR Sunpower upgraded to Outperform from Market Perform at Raymond James (124.00 ) -Update-

08:20 LRCX Lam Research: On path to become all-encompassing wet clean supplier – Stifel (45.13 )

Stifel notes on Tuesday that LRCX hosted a conf call to discuss its proposed acquisition of SEZ Group. As a reminder, the deal is valued at $568 mln and will be an all cash transaction. While their initial takeaway was somewhat lukewarm, firm believes that mgmt provided a long-term vision for becoming a major player in this equipment segment. In essence, firm believes that if the co is successful in integrating SEZ, it will be an all-encompassing supplier of wet clean equipment for the entire industry. Firm’s main concern lies with the potential integration of SEZ into the Lam Research fold, given SEZ’s European background.
08:20 BTU Peabody Energy aims to build coal mine in China – WSJ (56.51 )

WSJ reports the co is hoping to sign a deal in the next year to develop a coal mine in China, the world’s biggest coal mkt, its top executive said. “We’re very close,” Peabody chairman and CEO Gregory Boyce told a small group of reporters. “If an opportunity is presented in the next 12 months or so, we’re ready to sign.” Peabody is searching for a Chinese partner to develop an open-pit coal mine. Such mines cost hundreds of mlns of dollars and can produce about 50 mln tons of coal a year. Chinese cos, including top coal miner China Shenhua Energy and utility HNP, are considering teaming up with Peabody on projects within China, Mr. Boyce said. In exchange, Peabody would join forces with them internationally. Shenhua and Peabody are looking into investing in Mongolia or Australia but talks are in early stages, Mr. Boyce said.
08:20 WB Wachovia expects 4Q07 provision expense to be $1 bln higher than charge-offs – inside Goldman Sachs Financial Services Conf slides disclosed in 8-K (41.95 )

08:19 SCANX Early pre-market gappers

Gapping up: NEXT + 64.3%, CRIS +38.3%, IOM + 9.3%, LEAP + 8.8%, MPG + 6.9%, LNUX + 6.8%, MTW +5.5%, FBP +5.5%, ACTG +5.2%, HOV +4.8%, QLTI +4.8%, ANDE +4.6%, EK +4.5%, SAF +4.4%, BCSI +4.1%, ACAD +3.6%, AYR +3.5%, SWK +3.4%, GLBC +3.3%, CCE +2.9%, LTRE +2.9%, ARGN +2.8%, ZMH +2.6%, WMGI +2.2%, ECA +2.2%, PNK +2.2%, CPRT +2.1%, SEPR +2.0%, PNRA +2.0%, TER +1.9%, WYN +1.9%, CMOS +1.9%, RADS +1.8%, ACGY +1.6%, MCHP +1.6%, FMCN +1.6%, CMI +1.5%, ISCA +1.4%, BMR +1.4%, CBZ +1.4%, DYN +1.4%, CRME +1.1%, PEP +1.0%, MYL +1.0%… Gapping down: FRPT -12.0%, COO -10.4%, OFI -10.4%, ADY -9.9%, NUAN -9.0%, FRPT -8.8%, NWK -7.2%, ALO -3.9%, CP -3.6%, AKAM -3.0%, BAC -1.8%, TTM -1.7%, BDC -1.7%, AHCI -1.6%, BA -1.6%, GSK -1.2%.
08:18 Credit Suisse initiates coverage of the Publishing & Information Services sector with a Market Weight

Credit Suisse initiates coverage of the Publishing & Information Services sector with a Market Weight saying despite their expectations for near-term revenue woes, they believe downside risk to newspaper stocks is limited owing to free cash flow support, attractive dividend yields, and low investor expectations. The firm initiates initiates coverage of eight newspaper stocks: Gannett (GCI) tgt $46 and The New York Times (NYT) tgt $22 are rated Outperform; Belo Corp (BLC) tgt $19, Journal Communications (JRN) tgt $9, Lee Enterprises (LEE) tgt $14, McClatchy (MNI) tgt $15, Media General (MEG) tgt $23, and Scripps (SSP) tgt $47 are rated Neutral.
08:18 CS Credit Suisse: Avoiding big hit for once, Company holds promise – WSJ (61.76 ) -Update-

WSJ reports it has almost become a maxim on Wall Street: When mkts implode, the debris will crash down on top of the co. So when Credit Suisse Chairman Walter Kielholz and Goldman Sachs CEO Lloyd Blankfein, met over breakfast recently and noted their cos’ sidestepping of the subprime-mortgage crisis, it was an auspicious moment for the Swiss bank. While far from immune from the turmoil in the credit markets, Credit Suisse has largely escaped the subprime woes. Historically, Credit Suisse has been mgmt-challenged, says analyst Kian Abouhossein, who follows European broker-dealers at J.P. Morgan. Mr. Abouhossein notes that Credit Suisse exposure to risky subprime mortgages and collateralized debt obligations, which are backed by assets such as mortgages, is less than $2 bln, a fraction of the $39 bln held by UBS when the mortgage crisis hit. One reason for that is Credit Suisse’s mgmt, led by CEO Brady Dougan, began cutting back on the number of mortgages the bank held and originated at the end of 2006. For the stock to rise significantly, Mr. Dougan and his mgmt team will have to persuade investors that… they are skilled at significantly increasing revenue in its asset-mgmt and private-banking business.
08:16 T AT&T: Impact of increased AT&T investment in managed/utility hosting segment – Kaufman (39.46 ) -Update-

Kaufman notes yesterday T hosted an analyst day that discussed its outlook for next year as well as its key investment areas. Firm notes impact of AT&T (T) on the co in their Internet Infrastructure Provider universe, Equinix (EQIX), SAVVIS (SVVS) and Switch & Data (SDXC). Of the three cos mentioned above, SVVS is the one most focused on managed services, utility hosing and network services. EQIX and SDXC sell just collocation, power, cooling and interconnection services. Therefore, the increased investment should have minimal impact on EQIX and SDXC and has the potential of effecting SAVVS more, on a relative basis. Nonetheless, firm maintains their BUY ratings on all three stocks.
08:16 ODP Office Depot sees impact from continued economic weakness in Q4 (16.99 )

Co projects continued erosion of sales and earnings in the fourth quarter of 2007. As previously reported, the Company’s results for the third quarter of 2007 were negatively impacted by difficult housing-related economic conditions in certain of its key markets, particularly Florida and California, which accounted for 28 percent of North American sales in that period. This weakness appears to be spreading to other U.S. retail markets, creating additional pressure on sales and margins. Further, since inventory purchases are down due to lower sales and disciplined inventory management, fourth quarter vendor program support levels are currently expected to be about $70 million lower than last year.
08:15 PSSI PSS World Med Board of Directors authorizes purchase of 5% of total common shares, or approx 3.4 mln shares (19.30 )

08:15 BAC Bank of America Sees Quarterly Results Quite Disappointing; Expects To Have 4Q Profit; May Not Be Able To Resume Buybacks Until 2009 — Bloomberg -Update-

08:14 MMM 3M sees 2008 double-digit sales growth, of which 5-8 pct is organic, 3 pct or more from acquisitions – Reuters (84.65 )

sees 2008 10 pct earnings per share growth, operating margin 22.5 pct to 23.5 pct, cap ex $1.4 bln to $1.5 bln. Sees continued slow u.s. but still growing in 2008, second half stronger than first, no relief on residential housing.
08:12 WIRES On The Wires

North American Palladium (PAL) announces that Kaiser-Francis Oil Company has elected to exercise its right to fully subscribe for 25% of the unit offering, resulting in increased gross proceeds of approx $75 mln from $56 million… Symantec (SYMC) announces that EarthLink (ELNK) will become the first major Internet service provider in North America to provide Norton 360 to its subscribers… Vivus (VVUS) announces that it has initiated the third phase 3 study of Qnexa in obese patients with co-morbidities.
08:12 COO Cooper Cos tgt cut to $41 at Jefferies; mixed messages from fiscal 2008 guidance (42.54 ) -Update-

Jefferies cuts their tgt to $41 from $46 and believes that relying on the P&L overstates the asset value for COO given its high capex, as the majority of “costs” are run through the CF statement. Until firm sees evidence of a significant step down in capex or a step up in op margins, they remain cautious.
08:10 SDBT SoundBite Communications initiated with an Outperform at Cowen (7.00 ) -Update-

08:09 CELG Celgene downgraded to Neutral from Outperform at Cowen (50.20 )

08:09 MRX Medicis: Investment in Revance complements Reloxin and may include therapeutic use – RBC (26.31 )

RBC notes MRX announced an equity investment in and strategic collaboration with Revance Therapeutics surrounding Revance’s topical botulinum toxin A lotion currently in early-stage clinical development. Revance is developing its topical botulinum toxin lotion – code-named RT-001 – for cosmetic applications as well as hyperhidrosis. The product is in early stage development for both applications. Early data in hyperhidrosis is very encouraging and, if confirmed in larger Phase II studies, could extend MRX’s reach into therapeutic uses of botulinum toxin. Most importantly, the deal structure appears to limit risk for MRX while still locking up commercial potential of the products beyond the reach of potential competitors.
08:09 AKAM Akamai Tech downgraded to Neutral from Outperform at Cowen (37.10 )

08:08 The roots of the mortgage crisis; article written by Alan Greenspan – WSJ

In an article written by Alan Greenspan, WSJ reports “the crisis was thus an accident waiting to happen. If it had not been triggered by the mispricing of securitized subprime mortgages, it would have been produced by eruptions in some other market. As I have noted elsewhere, history has not dealt kindly with protracted periods of low risk premiums… concluded that bubbles cannot be safely defused by monetary policy or other policy initiatives before the speculative fever breaks on its own. There was clearly little the world’s central banks could do to temper this most recent surge in human euphoria…The current credit crisis will come to an end when the overhang of inventories of newly built homes is largely liquidated, and home price deflation comes to an end. That will stabilize the now-uncertain value of the home equity that acts as a buffer for all home mortgages, but most importantly for those held as collateral for residential mortgage-backed securities. Very large losses will, no doubt, be taken as a consequence of the crisis. But after a period of protracted adjustment, the U.S. economy, and the world economy more generally, will be able to get back to business.”
08:08 JSDA Jones Soda coverage transfered with a Source of Funds at ThinkEquity – tgt cut to $6 from $7.25 (6.77 )

ThinkEquity transfers coverage of JSDA and maintains their Source of Funds and cuts their to $6 from $7 saying with the co’s founder and CEO stepping down last week, they believe the uncertainty in leadership and vision in the co will make it hard for Jones to move forward and that this uncertainty in the future will push the stock below its current level over the next 12 months.
08:05 COBR Cobra Electronics announces change in mobile navigation strategy; plans Q4 charge of $7.4 – $7.7 mln (4.85 )

Co announces a major change in its mobile navigation strategy, ceasing all future development of mass marketed products. Instead, the co will limit its efforts to unique mobile navigation products sold into niche markets with specialized and focused distribution. Additionally, when such products are launched, the co plans to employ lower cost sourcing arrangements, utilizing the Performance Products Limited platform or that of other qualified vendors. In total, the charge against earnings for the fourth quarter is anticipated to be approximately $7.4 to $7.7 mln.
08:05 BC Brunswick: Execution is there, but weak demand presents earnings risk; tgt cut to $23 – RBC (19.49 )

RBC sees substantial upside when the cycle accommodates, but they maintain a cautious near-term outlook given very weak industry fundamentals and their view that 2008 ests are at risk. Reflecting these concerns, firm has lowered their 2008 est to $1.05 vs. their prior est of $1.15 and consensus of $1.25. Firm’s tgt has been reduced to $23 from $25 on lowered ests
08:03 WST West Pharm Services announces restructuring plan for Tech Group, $12 mln plan write-off to yield annual operating savings of $7 mln (37.04 )

Co announces that its Board of Directors unanimously approved a restructuring plan for its Tech Group segment. The restructuring proactively addresses the recent reduction in business due to changes in customers’ marketing plans by reducing the operating costs and increasing the manufacturing efficiency of the segment. The plan is expected to be completed by Dec, 2008. As a result of the restructuring, the Tech Group workforce will be reduced by approx 250 workers, or 13%. The co estimates that it will incur up to $12 mln in restructuring charges, including an estimated $2.5 mln, or $0.05 per diluted share in 2007 and an estimated $9.5 mln, or $0.19 per diluted share, in 2008. The expected charges consist primarily of severance costs and fixed asset write-downs. The co expects to realize $3 mln of cost savings in 2008 and annual operating savings thereafter are expected to be approx $7 mln.
08:02 CRIS Curis reports decision to advance a systemically administered hedgehog antagonist into phase II clinical testing; will be eligible to receive additional cash milestone payments from DNA (1.15 )

Co announces that its collaborator, Genentech (DNA) has notified CRIS of its decision to progress a systemically administered Hedgehog antagonist drug candidate into Phase II clinical testing in the first half of 2008. The drug candidate will be evaluated in one or more solid tumor indications. Upon Phase II initiation, CRIS will be eligible to receive additional cash milestone payments from DNA under the parties’ June 2003 collaboration agreement. Should the current drug candidate successfully continue its development into subsequent stages of clinical testing and regulatory approval, CRIS would be eligible to receive additional cash milestone payments. In addition, in the event the drug candidate is successfully commercialized, CRIS would be eligible to receive royalties on product sales.
08:01 TRB Tribune Revenues Down 3.3% in November, Broadcasting and Entertainment Revenues Down 2.6% (31.54 )

Co reported its summary of revs and newspaper advertising volume for period 11, ended Nov. 25, 2007. Consolidated revs were $413 mln, down 3.3% from last year’s $428 mln. Consolidated operating expenses were 5.0% lower than period 11 last year. Publishing revenues in November were $309 mln compared with $321 mln last year, down 3.5%. Advertising revenues decreased 4.9% to $244 mln, compared with $257 mln in November 2006. Advertising revs benefited from the shift in the Thanksgiving holiday week from period 12 in 2006 to period 11 this year.
08:01 SWK Stanley Works announces 10 mln share buyback; co has approx 80 mln common shares outstanding today (49.54 )

08:00 CYTX Cytori Therapeutics receives FDA 510 clearance for the cytori fat transfer system (5.17 )

08:00 2008 broadlines outlook – Citi

Citi expects the consumer spending environment to remain challenging throughout 2008 and notes that they are more conservative than C’s economic team with regard to the continued negative impact of housing market woes on consumer spending. To reflect their cautious outlook for 2008, firm is downwardly revising their 2008 earnings ests for HD/JCP/LOW/SVU and their tgt for JCP. Firm is now below consensus on all of the above mentioned names for 2008 earnings.
08:00 GWW WW Grainger reports Nov 2007 sales results; sales grew 10% vs Nov ‘06 (89.62 )

Co announces sales results for the month of November 2007. Sales grew 10% versus Nov 2006 including a 2 percentage point benefit from foreign currency.
08:00 Fed set to revamp liquidity support – FT.com

FT.com reports that the Federal Reserve is set to overhaul the way it provides liquidity support to financial markets, following a negative reaction to Tuesday’s interest rate cut. US stocks fell sharply after the central bank cut rates by only 25 basis points to 4.25% and failed to offer a clear signal of more to come. The overhaul, which could be announced as early as Wednesday, is likely to take the shape of a new liquidity facility that will auction loans to banks. This would allow the Fed to provide liquidity directly to a large number of financial institutions against a wide range of collateral without the stigma of its existing discount window loans. The idea is that this would ease severe strains in the market for interbank loans, and help restore more normal conditions in credit markets generally. However, it is unclear whether the new initiative will win over investors disappointed by Tuesday’s announcement.
07:59 S&P futures vs fair value: +12.7. Nasdaq futures vs fair value: +22.3.

Futures indicate the market is set for a rebound following yesterday’s steep decline. The impetus for the shift in sentiment is a report that the Fed may take additional action to boost liquidity in the financial markets using alternative measures such as long-term repo agreements or easing collateral rules. It was even noted that the Fed could do something more with the discount rate. There isn’t a lot of other corporate news of note, although it is worth noting that crane maker, Manitowoc (MTW), provided FY07 and FY08 EPS guidance that is above current consensus estimates. On the research front, Morgan Stanley has downgraded Boeing (BA) to Equal Weight from Overweight and Merrill Lynch has downgraded both JPMorgan Chase (JPM) and Bank of America (BAC) to Neutral from Buy while taking Wachovia (WB) to Sell from Neutral.
07:58 TLVT Telvent will develop IDENTICA System for the Ministry of Tourism and Trade; valued at more than six mln Euros (25.56 )

Co announces that it will develop a research and development project to be called IDENTICA (innovation and development for advanced identity verification through biometrics and personal documentation in secure environments) for the Ministry of Tourism and Trade. This project is valued at more than six mln euros and is backed by the Spanish Electronics, Information Technology and Telecommunications Industries Association.
07:56 WAL Western Alliance Bancorp downgraded to sell from Hold at Sandler O’Neill- tgt $20 (25.50 )

07:55 IOM Iomega to acquire ExcelStor; expect the transaction to be accretive (3.64 )

Co announces it will acquire ExcelStor Great Wall Technology. Iomega will issue approximately 84 million shares of common stock in Iomega in exchange for all outstanding ExcelStor common shares, representing in the aggregate 60% of the fully diluted capitalization of Iomega. They expect the transaction to be accretive to their bottom line, and the combined company is expected to have more than $1 bln in annual rev for 2007.
07:55 GNSS Genesis Microchip upgraded to Hold from Underperform at Jefferies – following takeover offer by STM, do not anticipate a higher offer (8.49 )

07:54 Hynix warns of loss in quarter if prices of chips don’t rise – WSJ

WSJ reports Hynix Semiconductor warned investors a Q4 loss is likely if chip prices don’t rebound. The co cited “adverse conditions prevailing in the global semiconductor market” for an unexpectedly sharp drop in average selling prices. “In the absence of a market turnaround in semiconductor prices, we will likely record operating and net losses for the fourth quarter,” the company said in a statement. According to DRAMeXchange, an online chip clearinghouse based in Taiwan, 512-megabit DRAM prices have fallen more than 30% since Sept. 30, while eight-gigabit NAND flash prices have dropped nearly 40% in the same period.
07:53 HOV Hovnanian Entrpr says there has been ‘a little positive momentum’; December sales have definitely picked up; says there’s plenty of credit for good borrowers– Bloomberg -Update-

07:52 T AT&T: Analyst day highlights numerous positives in Comm Tech (traffic growth, video competition, access investment) – Merriman (39.46 )

Merriman notes T held an analyst day yesterday morning. Firm believes the exponential growth in network bandwidth requirements, and their likely acceleration as further investments in higher speed wireline and wireless access technologies are stepped up, is the most far reaching positive for the optical, IP and video network infrastructure ecosystems we follow across carrier metro, core and access networks… Firm sees Ciena (CIEN) as a prime potential beneficiary as a key supplier in AT&T’s core network in which all traffic. Firm also see potential benefits for Tellabs (TLAB). They note Opnext (OPXT) is a derivate beneficiary of AT&T’s strong commentary regarding network traffic growth as the world’s largest supplier of high bandwidth optical transceivers. They believe several technology suppliers Sunrise Telecom (SRTI), Aware (AWRE), ADC Telecom (ADCT) and Harmonic (HLIT) also stand to benefit.
07:52 PSUN Pacific Sunwear initiated with a Neutral at MKM Partners-tgt $15 (15.28 )

07:51 BIG Big Lots initiated with a Neutral at MKM Partners- tgt $19 (16.97 )

07:51 CVTI Covenant Transport sees Q4 EPS of ($0.10) to break-even vs ($0.24) consensus (6.73 )

Co announces its expectations regarding financial results for fourth quarter of 2007. “Covenant’s consolidated financial results for the first two months of the fourth quarter tracked significantly ahead of our internal expectations. Based on our mileage utilization and revenue per total mile for the first ten days of December, we expect our financial results for December to exceed our internal expectations as well.” For the quarter, they expect to report consolidated results of operations in a range of ($0.10) to break-even (consensus is a loss of $0.24). “If achieved, these results would be significantly better than our forecast at the beginning of the quarter.”
07:50 PNK Pinnacle initiated with a Market Perform at BMO Capital (25.42 )

07:50 U.S. Stock futures indices rise to overnight sessions best levels in recent trade, following yesterday’s post FOMC sharp decline

Currently, Dec. S&P futures @ 1494.00 +16.00. Dec. Nasdaq 100 @ 2100.00 +20.00. Dec. Dow @ 13563 +113.
07:50 AZ Allianz in talks to buy shares from Koc Holding – Reuters (20.86 -0.52)

Reuters reports insurer Allianz is in negotiations with its partner Koc Holding to buy Koc’s stakes in two Turkish insurance cos, the German co said. Allianz wants to acquire an additional 47.1% of Koc Allianz Sigorta, a non-life insurance co, and a 49% stake in life insurer Koc Allianz Hayat ve Emeklilik from Koc Holding.
07:49 UBS UBS AG: Downgrade details (48.78 )

As mentioned at 6:21, Lehman downgraded UBS to Underweight from Equal-weight. The firm notes although much of the subprime overhang is lifted and the private bank continues to outperform, there is minimal absolute upside and significant relative downside. In addition a tough market environment and restructuring in the investment bank is now expected to lead to 2008 fixed income revenues being below 2005 levels rather close to 2006.
07:49 MMS MAXIMUS upgraded to Aggressive Buy at KeyBanc (37.98 )

KeyBanc upgrades MMS to Aggressive Buy from Buy with a $50 tgt as they believe that MMS’s existing book of business is in far better shape than it was 18 months ago when Richard Montoni assumed the position of Chief Executive Officer. Furthermore, they believe that the co has room for further margin expansion over the next 12-18 months.
07:48 ARGN Amerigon initiated with an Buy at Keybanc (18.44 )

07:48 CVTI expects to report consolidated results of operations in a range of ($0.10) to break even vs consensus of ($0.24)

07:47 IPAS iPass initiated with a Buy at Morgan Joseph- tgt $6 (4.00 )

Morgan Joseph initiates iPass with a Buy and a $6 tgt saying they see the valuation improving as consolidated sales growth returns, operating costs settle at a new, post-restructuring low level, and iPass begins to generate operating leverage.
07:47 CVTI expects their financial results for December to exceed their internal expectations

07:47 DYN Dynegy issues FY08 cash flow; EBITA & EPS guidance (7.98 )

Sees FY08 operating cash flow range of $585-685 mln; EBITDA $1.1-1.2 bln; basic earnings per share range of $0.17-0.24, may not comapre to the First Call consensus of $0.40. “Dynegy projects strong results from its nationwide power generation enterprise during 2008, including a year-over-year increase of EBITDA from our core business of approximately 15 percent,” said Bruce Williamson, Chairman and Chief Executive Officer of Dynegy Inc. “These projections reflect the continued operational and commercial performance of our 20,000 megawatt generation fleet, which is today marked by greater scale and scope, as well as geographic, fuel and dispatch diversity. This contributes to meaningful and stable cash flows today and in the near future.
07:46 SUMRX Filings, Offerings, Pricings and IPOs

Filings: Energy Transfer (ETP) files for a mixed shelf offering… Nuance (NUAN) files for a 15 mln share secondary offering; 9.6 mln shares are being offered by the co and 4.8 mln shares are being offered by selling shareholder Warburg Pincus and 600k are being sold by certain members of Nuance mgmt… Senior Housing (SNH) files for a 5 mln share common shares of beneficial interest secondary offering… Apollo Gold (AGT) files for a 7.82 mln share common stock offering by selling shareholders… Offerings: Network Equip (NWK) announces an $85 mln convertible notes private offering… IPOs: VanceInfo Technologies (VIT), a provider of information technology services and software development, prices its 7.65 mln ADS IPO at $8.50/ADS, right in the middle of the $7.50-$9.50 forecast range… Xinyuan Real Estate (XIN), a Chinese residential real estate developer, prices its 17.5 mln ADS IPO at $14/ADS, in the middle of the $13-$15 range. (PRICE)
07:45 CPRT Copart profiled in New America section of IBD (40.75 )

IBD reports the co works primarily with insurance cos to bring together buyers and sellers of wrecked cars. It also plays a role in removing vehicles banged up by Mother Nature, as in the recent Pacific Northwest storms. Copart operates 136 salvage yards worldwide. One key to the co’s leading position in the industry is the fact that barriers to entry are high. “They are a dominant player with irreplaceable assets. You can’t get zoning in cities nearby where Copart is located,” said Bob Labick, an analyst for CJS Securities. “This trend is a great competitive advantage for them.” The co could face competition from eBay as well as more regulation. “As Copart emphasizes exclusive online bidding, its business model looks more similar to eBay, which may be perceived as a competitive threat or an eventual buyer of Copart,” Robert W. Baird analyst Craig Kennison wrote in a research note. And while it’s not an issue yet, regulators have begun to restrict growth of Manheim, a co that controls at least 50% of the used automobile auction market. According to Kennison, “At some point, Copart could face similar restrictions in the salvage market.” Analysts expect 2008 earnings of $1.75 per share, a 20% increase over 2007. “It is virtually immune to trends in the economy,” said Bill Armstrong, an analyst for C.L. King.
07:39 F Ford Motor: Rivals for Jaguar await Ford verdict – FT (6.97 )

FT reports the three groups vying to buy Jaguar and Land Rover expect to hear from Ford Motor with its choice of a preferred bidder for the two carmakers by the end of this week. People close to Indian carmakers Tata Motors (TTM) and Mahindra & Mahindra, and the buy-out group One Equity Partners, said on Tuesday that they expected Ford to respond imminently to their revised offers made last week. The offers are said to range from about $1.8 bln to $2.2 bln. Mahindra is bidding together with private equity group Apollo Mgmt. While two people close to the deal said they expected a response from Ford by Wednesday, the complex deal has faced numerous delays, and so the decision could be further postponed. Tata, whose bid was endorsed by Jaguar and Land Rover’s unions last month, is seen as a frontrunner in the sale.
07:39 WIRES On The Wires

Pro-Pharmaceuticals (PRW) announces it has entered into a research collaboration with the University of Massachusetts Lowell to evaluate its leading compound, DAVANAT, with chemotherapy drugs… Hydrogenics (HYGS) announces that it has been awarded a contract to supply an onsite HySTAT Hydrogen Station to Ford Motor co’s Fuel Cell Centre… Uroplasty (UPI) announces that, since Oct 1, 2007, more than 250 active customers in the United States have purchased its Urgent PC neuromodulation system or additional Urgent PC lead sets and products for the treatment of overactive bladder symptoms… Cricket Communications (LEAP) announces that it has signed an agreement with Hargray Communications Group to acquire Hargray’s wireless telecommunications business and bring Cricket service to the Savannah, GA and Hilton Head, SC areas. Under terms of the transaction, Cricket will pay Hargray approx $30 mln… ImageWare Systems (IW) signed a one-year exclusive licensing agreement, which is followed by a one-year non-exclusive agreement , with Sol Logic. The terms of the agreement were not disclosed.
07:38 CCE Coca-Cola Ent guides FY07 above consensus (24.58 )

For 2007, co raises its EPS guidance to $1.36-1.39, ex-items, vs First Call consensus of $1.34. Co says this “reflects accelerated benefits from our restructuring and operating expense initiatives, portfolio expansion, balanced growth in Europe, and a favorable tax outlook.” Co says 2008 will reflect the positive revenue impact of the increased volume and changing mix in North America related to the full-year distribution of glac?au, FUZE, and Campbell’s. This mix impact and the higher selling price per case of these new brands will drive a high single-digit increase in revenue while additional investment against sparkling brands and operations will partially offset the benefits of this revenue increase.
07:37 CP Canadian Pacific guides FY07 EPS to bottom end or below prior range; reaffirms FY08 guidance (66.39 )

Co sees FY07 EPS at the bottom end or below prior guidance of $4.30-4.45 vs $4.21 First Call consensus. Co cites higher than anticipated W.T.I prices and the 30-day lag between fuel expenses and fuel recovery, combined with the effects of the severe weather patterns experienced in British Columbia in early December. Co reaffirms guidance for FY08 (Dec), sees EPS of $4.70-4.85 vs. $4.77 First Call consensus.
07:35 COO Cooper Cos: Hearing downgraded to neutral from buy at tier 1 firm (42.54 )

07:35 SCOR ComScore: Retail holiday e-commerce spending hits $4.6 bln during week ending Dec 9, nears $19 bln for the season (36.03 )

SCOR released an update of holiday season e-commerce spending for the first 39 days of the Nov — Dec 2007 holiday season. Nearly $19 bln has been spent online during the season-to-date, marking an 18% gain vs. the corresponding days last year. Thursday, Dec 6 recorded $803 mln in online sales, up 28% vs. year ago, making it the heaviest online spending day in history.
07:35 MTG MGIC Investment: Hearing downgraded to sell from neutral at tier 1 firm (26.27 )

07:34 CRME Cardiome Pharma: FDA Cardiorenal Panel votes in favor of Vernakalant approval – Rodman & Renshaw (9.26 )

Rodman & Renshaw notes CRDAC endorses approval of intravenous vernakalant in a 6 to 2 vote. This represents an important milestone for CRME and a major advancement for the treatment of atrial fibrillation. Importantly, the panel voted in favor of use in patients within a 3 hour to 7 day time window. Firm believes this duration of atrial fibrillation is long enough for Kynapid to gain adequate use in the acute setting. The members were not in favor of use in patients with recent myocardial infarction and/or moderate congestive heart failure. Firm ests that approx 10-20% of patients fall into this combined group. They forecasted peak gross sales in the $600-$700 mln range for iv vernakalant, which given the restriction could lower our projection to the approximate $500-$600 mln range.
07:34 CSTR Coinstar: Something new is “brewing”; an automated coffee kiosk being developed with SBUX – Merriman (26.52 )

Merriman says with continued coin-counting build-out and contributions from various acquisitions and investments, they believe CSTR is positioned to benefit from its cost-efficient operational structure and “4th Wall” strategy — driving both accelerated rev growth and higher margins. At an Albertson’s location in Bellevue, WA (near CSTR’s headquarters) firm discovered proof that CSTR is developing an automated coffee kiosk with Starbucks (SBUX) through the Seattle’s Best Coffee brand. This kiosk allowed consumers to purchase anything from a regular cup of coffee to specialized espresso drinks, with prices ranging from $1.30 to $2.55.
07:33 TSCM TheStreet.com: Analyst day reaffirms investment thesis; FY08 expected to be a huge year for TSCM – Merriman (13.41 )

Merriman notes yesterday TSCM held an analyst day, which provided more details about the strategic initiatives at the co. Through organic means and acquisitions, the co intends to expand its content offerings in the consumer finance area, which should broaden the addressable audience and attract non-financial advertisers. Firm believes TSCM is positioned to emerge out of FY08 as a major diversified and differentiated online media co in the financial sector, one with the most innovative technology, engaged user audience, proprietary content and unique value proposition to marketers.
07:33 CMOS Credence: Hearing upgraded to neutral from sell at tier 1 firm (2.12 )

07:32 NCC National City: Poorly positioned for continued housing weakness; tgt cut to $20 – FBR (18.60 )

Friedman Billings says following a closer look at NCC’s redit quality and loan portfolios, firm concludes that the co has greater risk than peers. Junior lien residential loans comprise 20% of total loans held for investment, and residential mortgages make up another 22%. Firm expects that originations, gain-on-sale spreads, and servicing will remain under pressure, although favorable hedging results may provide some offset. Firm reduces their 4Q07 EPS est to $0.43 (from $0.46) and their 2008 est to $1.56 (from $1.83) based on increased credit costs in their model. Firm reduces their tgt to $20 from $23.
07:32 KR Kroger: Weakness presents attractive entry point despite disappointing 3Q08 – FBR (26.47 )

Friedman Billings notes that last week they initiated on KR with a Market Perform Rating because they saw limited upside to the stock based on an EV/EBITDA multiple of 7x their FY09 (ending Feb 2009) est. Despite yesterday’s sloppy quarter, their valuation remains more or less unchanged, so with the stock down 6.6% on the day, firm believes the current level presents an attractive entry point, although would caution that they see very few positive catalysts until Kroger reports 4Q results in March. Firm believes the 4Q guidance is easily achievable given the easier gas margin comparisons, as well as management’s confidence that the competitive environment remains unchanged.
07:32 CCE sees FY07 $1.36-1.39 vs $1.34 First Call consensus

07:32 C Citigroup: Hosts prickly conf call; taps recent recruit Vikram Pandit as CEO – CIBC (33.23 )

CIBC notes on Dec 11 C appointed Vikram Pandit as CEO and Sir Win Bischoff as chairman of the board. Sir Win Bischoff had been acting CEO, and Robert Rubin had been acting chairman since early Nov. Subsequently, C hosted a 30-minute conf call for investors. Firm believes the call went poorly as details were scant and the tone was defensive. Pandit outlined run-of-the-mill aspirations related to: productivity, positioning businesses for the “future,” and talent. He defaulted on specifics due to “only being in the job for two hours.” C has real issues. It is undercapitalized, under-reserved, and facing mounting consumer losses. Firm is beginning to wonder if the current mgmt truly appreciates how serious these challenges are.
07:31 CP reaffirms FY08 $4.70-4.85 vs $4.77 First Call consensus

07:31 SCHW Charles Schwab initiated with a Neutral at UBS (23.84 )

07:31 LJPC La Jolla Pharm: Still waiting on first DMB analysis of Riquent phase III nephritis trial – Lazard (3.91 )

Lazard expects LJPC to report the outcome of the first DMB analysis of the ongoing Riquent Phase III lupus nephritis trial this month. The current Phase III trial of Riquent is being conducted under the oversight of an independent data monitoring board. La Jolla has disclosed that there are two interim efficacy analyses during the course of the trial; firm continues to expect the first analysis to occur this quarter, once 43 renal flares have been recorded. Firm believes there are two likely outcomes to the first DMB analysis — 1) increasing the size of the trial or 2) continuing as planned. Firm would view the first outcome as an incremental negative, while the second would not impact their long-term view of shares and they would be sellers into any potential strength.
07:31 CP sees FY07 at bottom end or even below prior guidance of $4.30-4.45 vs $4.21 First Call consensus

07:31 NUVO Nuvelo begins Phase 2 trial and receives Fast Track Status for alfimeprase in patients with acute ischemic stroke (2.16 )

Co announces dosing of the first patient in a Phase 2 proof-of-concept trial of alfimeprase for the treatment of acute ischemic stroke. Nuvelo has also been granted fast track designation by the FDA for alfimeprase in this indication.
07:31 November NPD preview: Data should reflect strong start to the holiday shopping season – Lazard

Lazard ests that software sales increased 20%-25% in Nov, despite a tough comparison with the launch last year of Nintendo’s Wii and Sony’s PS3, and declining PS2 software prices. They expect top titles in the month to include Call of Duty IV (ATVI), Super Mario Galaxy (Nintendo), Guitar Hero III (ATVI), Assassin’s Creed (UbiSoft), and Mass Effect (MSFT). Firm also expects Wii titles to account for an increasing portion of top software skus.
07:30 PNC PNC Bank gives guidance in today’s 8-k, sees Q4 EPS of $1.00-1.15 vs $1.39 First Call consensus (71.67 )

From today’s 8-k, “PNC expects to report diluted earnings per share within the range of $0.60 to $0.75 and adjusted diluted earnings per share within the range of $1.00 to $1.15 for the fourth quarter of 2007, based upon current information and assumptions. This revised expectation is primarily due to lower noninterest income attributable to valuation adjustments on $1.5 billion of commercial mortgage loans held for sale and lower than historically reported trading results due to unprecedented market price volatility, an additional anticipated increase to the provision for credit losses primarily related to residential real estate development, and an increase in the Corporation’s BlackRock/LTIP shares obligation due to a significant increase in the price of BlackRock’s common shares.”
07:30 MTLK Metalink’s CEO acquires additional 120K shares (4.94 )

Co announces that Tzvika Shukhman, Metalink’s Chief Executive Officer, and a principal shareholder, has acquired 120,000 shares of the co’s stock in open market purchases during the past two months. The purchases by Mr. Shukhman have been made in accordance with Metalink’s trading policies.
07:30 CQB Chiquita Brands: Interim price increases; Q4 margins could stay pressured; 2008 looks good – Morgan Joseph (19.44 )

Morgan Joseph notes interim pricing solid, but they expect costs to offset any price increases in 4Q; 2008 looks good, though. In the QTD, pricing increases were solid while volumes were slightly disappointing. Overall, however, firm believes CQB remains well-positioned for growth, particularly given the improvements in consumer demand for packaged salad and the favorable preliminary WTO ruling on the EU banana tariff. Improving market conditions plus the co’s continued cost-saving initiatives should set Chiquita up for profitability in 2008.
07:30 GERN Geron receives milestone payment from Merck triggered by IND filing for Telomerase cancer vaccine candidate (6.56 )

Co announces that Merck (MRK) has filed an Investigational New Drug application with the FDA for a cancer vaccine candidate that targets telomerase. MRK is developing the vaccine under a July, 2005 Research, Development and Commercialization License Agreement with GERN, which provided MRK with exclusive worldwide rights to develop and commercialize non-dendritic cell based vaccines targeting telomerase. GERN has received a $4 mln milestone payment from MRK on account of the I.N.D. filing, and is eligible to receive additional development milestones as well as royalties on worldwide product sales.
07:30 MVCO Meadow Valley awarded new construction contracts totaling $29.3 mln (12.99 )

Co announces that it has been awarded new construction contracts valued at a total of approximately $29.3 mln, and that it is the apparent low bidder on a $67.9 mln contract.
07:30 MPG Maguire Properties: Board moves to sell co, but will market cooperate? – FBR (25.26 ) -Update-

Friedman Billings notes MPG announced that the co had formed a Special Committee, which excludes CEO Rob Maguire, to evaluate strategic alternatives. As this is in combination with some logistical changes that were also announced, firm believes that the board is serious about trying to sell the co; however, firm has their doubts as to what kind of price the co’s portfolio can fetch.
07:28 TER Teradyne: Hearing upgraded to neutral from sell at tier 1 firm (10.98 )

07:25 ULTA Ulta Salon initiated with a Neutral at Piper Jaffray (20.91 ) -Update-

07:24 SDBT SoundBite Communications initiated with a Buy at Cantor Fitzgerald- tgt $10 (7.00 ) -Update-

Cantor Fitzgerald initiates SDBT with a Buy and sets a $10 tgt, based on estimates that the hosted contact center market will grow from $127.4 mln in 2005 to $1,494.0 mln in 2013, which represents a CAGR of 34.1%.
07:24 HTZ Hertz Global: Downgrade details (16.46 )

As mentioned at 6:21, BofA downgraded HTZ to Neutral from Buy and lowered their tgt to $20 from $27. The firm’s downgrade reflects the risks and earnings sensitivity from a decline in used vehicle and equipment prices. While they expect the co to outperform on the cost reduction front, earnings are more sensitive to resalevalue of cars and used equipment in the marketplace.
07:20 MYL Mylan Labs announces tentative FDA approval for lamotrigine tablets (13.54 )

Co announces that Mylan Pharmaceuticals has received tentative approval from the FDA for its Abbreviated New Drug Application for Lamotrigine Tablets, 25 mg, 100 mg, 150 mg and 200 mg.
07:19 FRPT Force Protection initiated with a Sell at Stanford – tgt $5.00 (6.82 )

07:18 TNDM Neutral Tandem initiated with an Overweight at Thomas Weisel (20.02 ) -Update-

07:17 SDBT SoundBite Communications initiated with an Overweight at Thomas Weisel (7.00 )

07:16 CRL Charles River downgraded to Neutral from Buy at UBS (64.54 )

07:15 PROJ Deltek initiated with an Outperform at Wachovia (17.26 )

07:14 ULTA Ulta Salon initiated with an Outperform at Wachovia (20.91 )

07:12 Airline Sector downgraded to Cautious from Attractive at Morgan Stanley

Morgan Stanley downgrades the Airline Sector to Cautious from Attractive. The firm also downgrades Northwest Airlines (NWA), US Airways (LCC), and Delta Air (DAL) to Equal Weight from Overweight. Also AMR Corp (AMR) is downgraded to Underweight from Equal Weight. Morgan Stanley also upgrades Continental (CAL) and Southwest (LUV) to Overweight from Equal Weight.
07:07 NEXT Nextest Systems to be acquired by Teradyne for $20/share (11.99 )

Under terms of the agreement unanimously approved by both boards of directors, Teradyne (TER) will pay $20 per share in cash for all the outstanding shares of Nextest. The aggregate purchase price is expected to be approximately $325 million. This is net of the cash acquired and includes the fair value of fully vested employee equity instruments and transaction costs. The acquisition is expected to be slightly dilutive to 2008 GAAP earnings per share and slightly accretive to 2008 non-GAAP earnings per share after excluding the purchase accounting impacts.
07:06 ISCA Intl Speedway raises FY07 guidance; guides EPS in-line for FY08, revs below consensus (42.98 )

Co issues raises guidance for FY07 (Nov), sees EPS of $2.75-2.80 from $2.70-2.75 vs. $2.73 First Call consensus; reaffirms revs of $810-815 mln. Co issues guidance for FY08 (Nov), sees EPS of $3.05-3.15 vs. $3.14 consensus; sees FY08 (Nov) revs of $805-825 mln vs. $846.23 mln consensus.
07:06 SWIM Investools says metrics for Nov 2007 show continued record trading activity and subscriber growth (16.85 )

Co announces for thinorswim that new accounts opened, net, 7,275; 71% higher than Nov 2006; new accounts funded of 3,575; 66% higher than Nov 2006; Funded accounts of 54,950 as of month-end; 171% higher than Nov 30, 2006; Retail DARTs of 45,100; 321% higher than Nov 2006; active Trader DARTs of 21,700; 61% higher than Nov 2006; and client assets of $2.62 billion as of month-end; 154% higher than Nov 30, 2006
07:04 NETM NetManage: Rocket Software to acquire NetManage for $7.20 per share (3.69 )

Rocket Software and NetManage announced that their respective boards of directors have approved, and both companies have signed, a definitive agreement for Rocket to acquire NetManage in a merger transaction. Pursuant to the terms of the Merger Agreement, Rocket will acquire each outstanding share of common stock of NetManage for $7.20 per share, representing a 95% premium over the closing share price of NetManage’s common stock on December 11, 2007 of $3.69. NetManage currently has approximately 9.6 million shares of common stock outstanding for an aggregate transaction value of approximately $69 million. The acquisition is expected to be completed in February, 2008.
07:02 NFG National Fuel Gas sends letter to New Mountain Vantage Advisers, that includes a detailed review of the co’s ongoing efforts that have steadily enhanced shareholder value (48.78 )

Co announces that yesterday it sent a letter to New Mountain Vantage Advisers that includes a detailed review of the co’s ongoing efforts that have steadily enhanced shareholder value, provides the rationale behind National Fuel’s Appalachian strategy, discusses master limited partnership considerations and its review of its additional assets. This letter was sent in response to earlier correspondence from New Mountain, which included suggestions for making fundamental changes to the structure and strategy of the co. The co has concluded, after thorough analysis, that New Mountain’s proposals are not in the best interests of its shareholders. In its letter, the co points out the “rather peculiar circumstances of a shareholder challenging the management of a co that has not only maintained, but grown, shareholder value, whether results are looked at over one, three, five or 10 years. Likewise, the co noted New Mountain’s lack of real experience in managing assets in the energy industry and lack of access to National Fuel’s proprietary information, and questioned the thoroughness of New Mountain’s analysis and the wisdom of its conclusions. In its letter to New Mountain, the co has summarized its long-term business strategy, its pattern of creating and sustaining shareholder value and its analysis of each of the propositions offered for changing the structure of the co.”
07:02 AHCI Allied Healthcare misses by $0.01, misses on revs (2.51 )

Reports Q4 (Sep) earnings of $0.05 per share, excluding non-recurring items, $0.01 worse than the First Call consensus (2 estimates) of $0.06; revenues rose 5.7% year/year to $73.2 mln vs the $78.2 mln single estimate.
07:01 BA Boeing downgraded to Equal Weight from Overweight at Morgan Stanley (88.70 )

07:01 WHRT World Heart: Abiomed announces strategic investment in WorldHeart (2.59 )

Co announces that it has entered into a strategic alliance with ABIOMED (ABMD). Under the terms of the agreements, ABMD will: 1) provide a secured convertible loan to WHRT of $5 mln, funded in two tranches, accruing interest at 8% per annum, and convertible into WHRT common shares at ABMD’s option; 2) provide certain marketing and clinical support services to WHRT, and will receive a warrant for an aggregate of 3,400,000 common shares of WHRT as partial consideration for these clinical support and marketing services; 3) have the right of first refusal to act as an exclusive worldwide distributor for any future WHRT product; and 4) have the right to designate one nominee or observer to the WHRT Board of Directors.
07:00 MBA Mortgage Applications 2.5% vs 22.5% prior

07:00 DSCP Datascope: Ramius Capital sends letter to shareholders of Datascope; urges shareholders to vote for independent nominees (37.63 )

RCG Starboard Advisors, an affiliate of Ramius Capital Group, issues a letter to all shareholders of DSCP urging all shareholders to vote for its two independent director nominees, Dr. David Dantzker and William Fox, at the co’s 2007 Annual Meeting scheduled for 12/20. “Since the outset of this election contest, DSCP has attempted to distort the facts and mislead shareholders through numerous public statements and mischaracterizations regarding the ethics investigations and other matters. Even more troubling is the co’s refusal to disclose the name of the forensic accountants hired to assist the Audit Committee in its investigation of the alleged ethics violations. It appears that KPMG was engaged for this task, the same firm at which the Chairman of the Audit Committee, James Loughlin spent his 40-year career. Yet Mr. Loughlin classified this firm as having no material prior relationship with the co. It is clear that significant issues still exist at DSCP and that only by electing both independent nominees, Dr. David Dantzker and Mr. William Fox, will our efforts to bring about true accountability and transparency to Datascope be successful.”
07:00 AHCI prelim $0.05, ex items vs $0.06 First Call consensus; revs $73.2 mln vs $78.20 mln single estimate

06:58 TNDM Neutral Tandem initiated with an Equal Weight at Morgan Stanley (20.02 )

06:56 CBB Cincinnati Bell downgraded to Peer Perform from Outperform at Bear Stearns (4.69 )

06:46 UNTD United Online announces decision to withdraw IPO of Classmates Media (12.32 )

Co announces that its wholly-owned subsidiary, Classmates Media, intends to withdraw its S-1 registration statement as previously filed with the SEC. United Online has determined that proceeding with the initial public offering under current market conditions would not be in the best interests of its stockholders.
06:45 CALLS Early Research Calls III

Upgrades: JMP upgrades Acadia Pharma (ACAD 11.20) to Strong Buy from Outperform… Morgan Stanley upgrades BioMed Realty (BMR 24.65) and Home Properties (HME 44.31) to Overweight from Equal Weight. Downgrades: JMP downgrades Flanders (FLDR 6.64) to Underperform from Market Perform… Morgan Stanley downgrades Avalonbay (AVB 97.80), Boston Properties (BXP 98.33), Essex Property (ESS 101.48) and Camden Property (CPT 50.19) to Equal Weight from Overweight… Morgan Stanley downgrades Apt Inv & Mgt (AIV 37.48) and Duke Realty (DRE 26.75) to Underweight from Eqaul Weight… Merrill downgrades Perrigo (PRGO 32.55) to Neutral from Buy… Merrill downgrades JPMorgan Chase (JPM 45.94) and Bank of America (BAC 44.65) to Neutral from Buy… Merrill downgrades Wachovia (WB 41.95) to Sell from Neutral. Miscellaneous: J.P Morgan initiates Ulta Salon (ULTA 20.91) with an Overweight… J.P Morgan initiates Deltek (PROJ 17.26) with an Overweight… Morgan Stanley initiates Pinnacle Entertainment (PNK 25.45) with an Overweight… CIBC initiates Neutral Tandem (TNDM 20.02) with an Outperform and a $25 tgt saying the business model fits the firm’s thesis that horizontal companies will prevail. Its carrier-neutral model is similar to that of wireless towers or Equinix—a neutral meeting point for the exchange of voice traffic. The firm says TNDM’s first-mover advantage makes it almost impossible for a new competitor to enter.
06:32 MGLN Magellan Health guides in-line for FY08 (44.65 )

Co issues in-line guidance for FY08 (Dec), sees EPS of $1.88-2.34 vs. $2.20 First Call consensus; sees FY08 (Dec) revs of $2.53-2.66 bln vs. $2.63 bln consensus. Co noted, “Consistent with our previous statements, we are continuing to expect care trend in the range of five percent to seven percent for the health plan behavioral business, three percent to five percent in the public sector business and 12 percent to 15 percent in the radiology management business. We also are continuing to forecast some margin contraction upon renewal of certain public sector contracts and certain health plan contracts to reflect the lower care trend we experienced in 2007. In addition, our projections for next year include the impact of business lost in 2007 and 2008 consisting primarily of the previously announced losses of the Blue Cross Blue Shield of Massachusetts and Empire behavioral health contracts.”
06:23 CALLS Early Research Calls II

Miscellaneous: Kaufman initiates First Bancorp of Puerto Rico (FBP 7.31) with a Buy and sets an $11 tgt, based on shares selling at a deep discount to common book value despite economic softness in its Puerto Rico and southern FL regional markets… Keefe, Bruyette initiates Capital Bancorp (CBC 20.43) with a Market Perform and sets a $19 tgt, based on rising credit costs and profitability headwinds at both its newer and legacy franchises… HSBC initiates AXA (AXA 40.75) with a Neutral… Broadpoint Capital initiates Cytori Therapeutics (CYTX 5.17) with a Buy, based on their initial therapeutic platform, breast reconstruction following partial masectomies, that represents an underserved area with limited treatment options while its Cell Banking division should begin to generate significant revenue in ‘08, and represents another solid revenue stream in the short term… Broadpoint Capital initiates PhotoMedex (PHMD 1.10) with a Buy, based on recent headway with reimbursement and 3rd party payers which should allow accelerated uptake of its XTRAC therapy and believe the co is on the cusp of profitability… Broadpoint Capital initiates Isolagen (ILE 2.91) with a Neutral, as they believe the co’s cosmeceutical line of products, Agera, represents a supplemental revenue stream, particularly once its cell therapy is introduced to the market.
06:21 CALLS Early Research Calls I

Upgrades: Lehman upgrades Repsol (REP 36.55) to Equal-weight from Underweight… Lehman upgrades Acergy (ACGY 21.22) to Overweight from Equal Weight… Friedman Billings upgrades BankAtlantic Bancorp (BBX 4.34) to Market Perform from Underperform and lowers their tgt to $4 from $4.50, based on valuation… Friedman Billings upgrades SAFECO (SAF 55.54) to Market Perform from Underperform and maintains their $62 tgt, based on auto insurance rates that are increasing again, a top line that has shown resiliency in recent quarters to an increasingly competitive market environment, a stronger ability to repurchase shares and valuation. Downgrades: BofA downgrades Hertz (HTZ 16.46) to Neutral from Buy… Credit Suisse downgrades SAP (SAP 52.67) to Underperform from Outperform saying operating margin progression will be impeded in 2008 by increasing investments in A1S ahead of revenues, adverse currency impacts, and restructuring costs to achieve synergy benefits in Business Objects…. Lehman downgrades UBS (UBS 48.78) to Underweight from Equal-weight… Lehman downgrades Royal Dutch Shell (RDS-A 80.57) to Equal-weight from Overweight… Lehman downgrades Lukoil (LUKOY 89.75) to Equal Weight from Overweight… Keefe, Bruyette downgrades Franklin Bank (FBTX 5.33) to Underperform from from Market Perform and lowers their tgt to $4.25 from $6.50, following the co’s announcement of a $20 mln increase in reserves… Friedman Billings downgrades EDO (EDO 55.50) to Market Perform from Outperform and lowers their tgt to $56 from $63, based on Institutional Shareholder Services’ recommendation that shareholders approve ITT’s $56 tender offer for EDO
06:16 Asian stocks retreat with Wall Street as Fed rate cut disappoints; Sensex ends up 85pts

Stock markets across Asia retreated Wednesday, with the Hong Kong benchmark shedding 2.4% as investors digested the latest Fed decision to cut interest rates by just a quarter point, disappointing the market and sending Wall Street plunging overnight. The Hang Seng ended down 705.78 points or 2.4 pct at 28,521.06, with China stocks and properties weighed down by profit-taking… In Tokyo, the Nikkei closed down 0.7% at 15,932.26 and the broader Topix index was down 0.9% at 1,556.93, with some exporters reversing early losses after the US dollar rebounded against the yen. The dollar was last quoted at 111.04 yen, after slipping to 110.62 yen late Tuesday as investors unwound yen-funded carry trades… The Sensex opened with a negative gap of 94 points at 20,197 following the sharp drop in the overseas markets after the US Fed cut its key rate by a lower-than-expected 25 bps. (Thomson, The Business Standard)
06:15 Stocks in Europe slide after U.S. rate disappointment

European shares moved sharply lower on Wednesday, paced by banks and miners, as investors reacted with disappointment to the U.S. Federal Reserve’s decision to cut both its Fed funds rate and discount rate by a quarter percentage point. European investors taking their first chance to react to the Fed’s move pushed the pan-European Dow Jones Stoxx 600 index down by 1.1% to 369.58. Of national indexes, the U.K. FTSE 100 index fell 1.2% at 6,457.80, the German DAX 30 index lost 1% at 7,931.34 and the French CAC-40 slipped 1.3% at 5,649.12. Wednesday’s share moves in Europe follow losses from U.S. and Asia. (Thomson)
06:06 WIRES On The Wires -Update-

Nortel Government Solutions, a U.S. co wholly owned by Nortel (NT) will continue to provide environmental management and support services through 2010 for the U.S. Air Force Research Laboratory’s Materials and Manufacturing Directorate under an estimated $10.4 mln contract… Acacia Research (ACTG) announces that its Contacts Synchronization subsidiary has entered into a settlement agreement with Alltel in connection with the patent infringement lawsuit Civil Action No. 07-C-0250-C. Terms of the settlement agreement are confidential.
06:04 TEC Teton Energy appoints Lonnie Brock as CFO, effective Jan 1, 2008 (4.35 )

06:04 S&P futures vs fair value: +9.0. Nasdaq futures vs fair value: +16.5.
06:03 European Markets

FTSE…6483.30…-53.60…-0.8%. DAX…7965.28…-44.14…-0.6%.
06:03 Asian Markets

Nikkei…15932.26…-112.46…-0.7%. Hang Seng…28521.06…-705.78…-2.4%.
06:03 INO Inovio Biomedical receives additional milestone payment from Merck relating to electroporation delivery system or DNA vaccines (0.94 )

Co announces it will receive a $2 mln milestone payment from Merck (MRK) resulting from the filing of a second IND application to the FDA by Merck for a DNA-based vaccine using Inovio’s MedPulser DNA Delivery System. The milestone relates to Inovio’s collaboration and license with Merck initiated in May 2004 for the development of certain DNA vaccines. Further development of the product may lead to additional milestone payments and royalties to Inovio.
06:00 WIRES On The Wires -Update-

Telestone Technologies (TSTC) announces they have signed their first sales agreements in both Brazil and Mexico; co is now in progress of applying for license approval to sell a broader range of products in Brazil.
05:58 ECA EnCana plans to increase capital expenditures 13% in 2008; anticipates doubling of dividend to $1.60 (65.45 )

Co plans capital expenditures of about $6.9 bln in 2008, up about 13% from 2007. EnCana also expects to generate an estimated $500 mln from divestitures in 2008. Finally, co plans to double its dividend in 2008 to $1.60/share and expects to repurchase about 2% of its shares under its Normal Course Issuer Bid program.
05:43 BHP BHP says considering next Rio moves – Reuters (66.77 )

Reuters reports BHP Billiton (BHP) said it was considering its next move in its attempt to open takeover talks with rival Rio Tinto (RTP), which has so far rebuffed its advances. BHP Chief Executive Marius Kloppers reiterated on Wednesday the co’s proposal to offer three of its shares for every Rio Tinto share was compelling and would unlock billions of dollars in synergies. BHP was considering its possible next steps and was talking to shareholders about their views, it said in a statement. Kloppers in a later telephone media briefing from London declined to elaborate on what those steps might be. A Rio Tinto spokeswoman said Rio saw nothing new in BHP’s latest comments that would sway its position of non-engagement. “It was pretty much the same stuff we’ve heard.” said Amanda Buckley.
05:40 AZN AstraZeneca sues as more generic firms threaten Crestor – Reuters (46.16 )

Reuters reports AstraZeneca (AZN) said on Wednesday it had filed patent infringement actions in the U.S. against seven generic drugmakers, which have submitted plans to sell generic versions of its cholesterol pill Crestor. The co first announced last month it faced a generic challenge from Cobalt Pharma. Since then it has received similar patent challenges from eight additional generic drug manufacturers. All of them plan to market a cheap generic form of Crestor in the U.S. market before patents protecting the medicine expire. Crestor is covered by three key patents valid until 2016, 2020 and 2021. But the generic firms claim they have either found a way not to infringe these patent or else that the patents are invalid or unenforceable. AstraZeneca said challenges had come from Teva Pharmaceutical Industries (TEVA), Aurobindo Pharma, Apotex, Par Pharma, Novartis’s (NVS) Sandoz, Mylan (MYL), Glenmark Pharma, and Sun Pharma Industries. AstraZeneca has filed individual patent infringement actions in the U.S. District Court, District of DE, against Aurobindo, Apotex, Cobalt, Par, Sandoz, Mylan and Sun alleging infringement of patent number 37,314.
05:34 Xstrata says held initial talks, no proposals made – Reuters

Reuters reports Xstrata said on Wednesday it had held preliminary talks about possible mergers, but the discussions resulted in no proposals. “None of these very preliminary discussions have resulted in any proposal being made either for or by Xstrata and there can be no certainty that any such proposal will result,” the co said. Xstrata, which press reports have linked to interest from potential suitors such as Vale and Anglo American (AAUK), said it put out a statement in response to media speculation about a possible merger, which has intensified in recent days and sent its shares surging. “Xstrata confirms that its ongoing interaction with other industry participants includes dialogue with a number of parties covering a range of topics of mutual interest such as industry consolidation,” the statement said. “Xstrata is continually reviewing opportunities within the industry with a view to adding value to its shareholders.”
05:31 CS Avoiding big hit for once, Credit Suisse holds promise – WSJ (61.76 )

The Wall Street Journal reports Credit Suisse (CS) has largely escaped the subprime woes and has surprised rivals by reaching a deal last week to form an investment-banking joint venture in China. Historically, Credit Suisse has been management-challenged, says analyst Kian Abouhossein, who follows European broker-dealers at JP Morgan. “You normally have a blowup in this type of environment, but this time they’ve done extremely well,” Mr. Abouhossein said. Mr. Abouhossein notes that Credit Suisse exposure to risky subprime mortgages and collateralized debt obligations is less than $2 bln, a fraction of the $39 bln held by UBS (UBS) when the mortgage crisis hit.
05:26 Morning News Summary

WSJ: Avoiding big hit for once, Credit Suisse (CS) holds promise. Reuters: Xstrata says held initial talks, no proposals made… AstraZeneca (AZN) sues as more generic firms threaten Crestor… BHP (BHP) says considering next Rio (RTP) moves.
02:19 MT ArcelorMittal announces program to buy back up to a maximum of 44 mln shares (72.30 )

01:44 Earnings in 2008 should disappoint – Barron’s Online

Barron’s Online reports expectations among analysts for a strong revival in corporate-earnings growth for 2008 may be off target. After another year-on-year decline in the current quarter, earnings for the S&P 500 companies are likely to post a weak recovery next year, and probably not until the second half. And just as in 2007, the size and timing of write-downs from credit losses at financial companies will help determine the earnings trend in 2008. “Be prepared for a tsunami of earnings downgrades in 2008,” wrote David Rosenberg, the North American economist for Merrill Lynch, in a research noted published last week. Several market strategists have slashed estimates for 2008. Strategists widely believe that “bottom-up” earnings estimates should receive numerous downgrades in the coming months across a variety of industries.
01:43 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Countrywide Financial (CFC), Xerox (XRX), First Marblehead (FMD), CIT (CIT), Speedway Motorsports (TRK), Big Lots (BIG), Coeur d’Alene Mines (CDE), XM Satellite Radio (XMSR) and Intuit (INTU).
01:42 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Greif (GEF), Focus Media (FMCN), Allos Therapeutics (ALTH), Hewlett-Packard (HPQ), Eastman Kodak (EK), America Movil (AMX), Dynegy (DYN), Yamana Gold (AUY), Barrick Gold (ABX), Sirius Satellite Radio (SIRI), Dominion Resources (D) and Bankrate (RATE).
01:41 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Tuesday’s edition, Jim suggests Focus Media (FMCN) and favor’s the co’s agreement to buy CGEN Digital, its biggest competitor in in-store digital advertising. The deal is monopolistic, a quality he said he likes and one which Focus Media should gain from. In addition, Cramer said Focus Media has become the largest Internet advertiser in China after it bought Allyes AdNetwork, an Internet advertising co, earlier this year. Going forward, Cramer said he wouldn’t be surprised if Google (GOOG) tried to buy a stake in Focus Media to get into the advertising market in China. He expects margins to improve dramatically when acquisitions are integrated. Next, he favors Air Products & Chemicals (APD) based on a global helium shortage and a competitor of the co raising prices.
01:37 WIRES On The Wires

The Board of Directors of ABM Industries (ABM) declares a cash dividend of $0.125 (4.2% increase) per common share payable on February 4, 2008 to stockholders of record on January 10, 2008.
01:35 Xinyuan Real Estate prices its IPO of 17.5 mln ADSs at $14.00 per ADS

01:34 VanceInfo prices its IPO of 7.65 mln ADSs at $8.50 per ADS

01:33 WMGI Wright Medical receives subpoena from DoJ (27.56 )

Co announces that it received a subpoena from the U.S. DoJ through the U.S. Attorney for the District of NJ requesting documents for the period January 1998 through the present related to any consulting and professional service agreements with orthopaedic surgeons in connection with hip or knee joint replacement procedures or products.
01:31 MPG Maguire Properties forms special commitee to focus on strategic alternatives for achieving shareholder value (25.26 )

Co announces they have formed a Special Committee comprised solely of independent directors to focus on strategic alternatives for achieving shareholder value, including a possible sale.
00:30 ABM ABM Industries beats by $0.05, misses on revs; guides Q1 EPS in-line; guides FY08 EPS below consensus (20.35 )

Reports Q4 (Oct) earnings of $0.38 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.33; revenues fell 6.8% year/year to $723.9 mln vs the $732.2 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.14-0.18 vs. $0.16 consensus. Co issues downside guidance for FY08, sees EPS of $1.15-1.25 vs. $1.30 consensus.