Data Feed

08:33 ASFI Asta Funding beats on EPS, beats on revs (27.26 )

Reports Q4 (Sep) earnings of $0.88 per share, includes impairment charges of $6.7 mln, may not be comparable to the First Call consensus of $0.67; revenues rose 41.3% year/year to $43.1 mln vs the $35.9 mln consensus.
08:33 SGMS Scientific Games awarded new contract with William Hill (33.05 )

Co announces that its wholly owned subsidiary The Global Draw has been awarded a 4 yr contract to supply multi-game server-based gaming terminals to William Hill betting shops. This contract establishes Global Draw as the supplier of gaming machines to a minimum of 548 William Hill betting shops, which will house approximately 2,100 terminals.
08:32 ASFI prelim $0.88 may not compare to $0.67 First Call consensus; revs $43.1 mln vs $35.85 mln First Call consensus

08:31 NOC Northrop Grumman: Navy probes work at co’s shipyard – WSJ (79.86 )

WSJ reports the U.S. Navy is investigating the quality of workmanship at the co’s Newport News shipyards, marking the latest stumbling block for the defense contractor’s shipbuilding operations. Officials discovered cracks in welded joints on at least one 377-foot Virginia class submarine, but the inquiry has been expanded to other vessels. Officials said they plan to scrutinize work dating back to 2000. The Newport News shipyard is critical to the Navy because it is the only place where nuclear-powered aircraft carriers are built. The Navy said the problems are located in piping and don’t affect hulls or nuclear systems. Investigators found that workers inadvertently used incompatible metals during the welding process, resulting in weak joints. Newport News said that it will retrain more than 3,000 welders by mid-January. The co said it should know by early next month how many submarines and surface ships are affected.
08:31 S&P futures vs fair value: +16.3. Nasdaq futures vs fair value: +24.8.

Futures gain a few points immediately following the Personal Income and Consumption report. Recently reported by the Dept. of Commerce, November income rose 0.4%, spending rose 1.1% and core-PCE increased 0.2%. Economists expected a 0.5% increase for income, a 0.7% increase for spending, and a 0.2% increase for core-PCE, which is the Fed’s favored inflation indicator. In earnings news, Walgreens (WAG) topped expectations, while Circuit City (CC) posted a larger loss than expected.
08:30 ECONX PCE Deflator y/y +3.6% vs +3.4% consensus

08:30 ECONX PCE Deflator m/m +0.2% vs +0.2% consensus

08:30 LAB Labranche provides update on strategic alternatives review (5.10 )

Co announces that after carefully considering all alternatives reasonably available to the Company, the Board has determined that, at this point, the Company should focus on its current business activities. While the Company does so, the Board will continue considering strategic alternatives for enhancing stockholder value. As the Company has stated before, there is no assurance that any potential strategic transactions will be identified or consummated. The Company will continue to implement cost cutting initiatives, including interest savings from the reduction of the Company’s public debt as opportunities arise.
08:30 ECONX PCE Core y/y 2.2% vs +2.0% consensus

08:30 ECONX Personal Spending +1.1% vs +0.7% consensus

08:30 BONDX Bond Watch: Swatted Lower

The market is suffering from a concerted shift into riskier assets as a whiff of confidence returns to trade. Globally, stocks drove higher as central bank efforts to ease friction in short-term credit markets looks to have at least gotten the gears moving again. Throw in a possible rescue package floated to Merrill Lynch by Mr Money Bags Singapore & markets look prepared to layer on some risk, albeit on severely light volume. The 2-10-yr yield spread is stuck just under 100 as its steepening bend is snagged until curve trade gets a better beat on data & policy. Bond prices in the EuroZone were helped lower via better industrial orders while in Japan, bonds mostly stunk on better stocks. Treasuries will eye the data today with focus on the inflation component of the income/spending report. Technically the market is in no-mans land awaiting more clarity & liquidity. Positive momentum has stalled & mostly trade will be driven by position squaring into the year end. The euro took back some ground on the dollar & yen while the pound continues to get pounded. Gold is higher with the dollars slide & directional expectations 804.28 (+7.90) crude is steady to lower running off now at 90.94 (-0.12). Data due has personal income/spending & core PCE (8:30) & UofM revisions (10). The market will also be looking for the results on the special $20B 35-day TAF results. The euro is at 1.4382 & the yen is at 113.5700 while the 10-yr is -04/32 yielding 4.066%. For more bond & economic commentary click here.
08:30 ECONX Personal Income +0.4% vs +0.5% consensus

08:29 F Ford Motor tgt cut to $7.50 from $9 at UBS (6.79 ) -Update-

UBS cuts their tgt on F to $7.50 from $9 noting Ford provided Q1 ‘08 production guidance that is down 7.4% y/y. TFirm notes this is a significant reduction given the relative weak Q1 comp. Ford cut production 14.4% y/y in Q1 ‘07. While they expect second half production will improve with the F-150 launch, they remain cautious regarding the first half outlook. The firm is lowering their FY08 earnings estimates to $0.30 from $0.50 based on expectations of weaker full year production in 2008.
08:29 ADG Allied Defense announces ammunition orders for approximately $4.3 mln (5.20 )

Co announces that its Belgium-based ammunition company, MECAR, has received orders totaling approximately $4.3 mln.
08:28 Chocolate makers face probe over pricing – WSJ

WSJ reports Justice Department antitrust enforcers are inquiring about pricing by chocolate makers, which have been trying to offset higher dairy costs. Last month, Canadian regulators began an investigation into allegations that the Canadian divisions of Hershey (HSY), Cadbury Schweppes (CSG), Mars and Nestle fixed prices. Now, the U.S. antitrust officials have begun making inquiries into chocolate companies in the U.S., representatives at two chocolate makers said yesterday. It isn’t clear precisely what the Justice Department is looking into or whether the preliminary inquiry will become a formal criminal investigation.
08:25 Personal Income and Spending Preview – Data is scheduled to come out at 8:30 AM ET

You can check out our preview here.
08:25 COGN Cognos downgraded to Hold from Buy at Wedbush-given the likelihood that IBM’s acquisition will close in Q1 2008 and that no other vendor will make a competitive bid for the co (57.52 )

08:21 REP Repsol halted – news pending (34.68 ) -Update-

08:18 GTOP Genitope: Even if the FDA accepts an NDA to be filed best outcome investors could expect would be an approvable letter requesting another Phase 3 trial – Brean Murray (2.59 )

Brean Murray says that as expected, the MyVax Phase 3 trial failed to meet primary endpoint. They find mgmt’s optimism to be both outrageous and completely unwarranted. Mgmt’s touting of this trial as a success simply because MyVax proved to be an active agent in patients with an immune response is ludicrous, in their opinion. They say this argument is further made moot considering that MyVax’s patient population was relatively healthy and non-representative, having responded to chemotherapy and remained progression free for six months before entering the trial. Finally, the firm says KLH and GM-CSF may have played a part in eliciting an immune response, as both compounds are known immune stimulators and were present in both the active and control arms. They believe this further confounds the co’s argument that an immune response was created solely due to MyVax. Even if the FDA accepts an NDA to be filed, they believe the best outcome investors could expect would be an approvable letter requesting another Phase 3 trial.
08:18 NKE Nike: Sports Direct sells Umbro shares to Nike – DJ (66.01 )

08:15 PRICE Filings, Offerings, Pricings and IPOs

Filings: SLM Corp (SLM) files for a common stock shelf offering… Arrowhead Research (ARWR) files for a $50 mln mixed shelf offering… Kroger (KR) files for a mixed shelf offering… SMF Energy (FUEL) files for a 4.56 mln share common stock offering by selling shareholders… Offerings: AspenBio Pharma (APPY) announces a private placement of 2.5 mln shares of common stock for gross proceeds of $18 mln… Pricings: Fedrl Rlty Inv Trst (FRT 81.25) prices a 2 mln share common stock offering at $81.21/share.
08:14 SUMRX Top Research Calls at ~8am

Upgrades: Research in Motion (RIMM 106.99) was upgraded at Bear Stearns to Outperform from Peer Perform and Raymond James to Outperform from Market Perform and raises their tgt to $140 from $110 following earnings… Lehman upgrades Schering-Plough (SGP 26.20) to Overweight from Equal-weight… RBC upgrades Itron (ITRI 85.15) to Outperform from Sector Perform… Downgrades: Morgan Stanley downgrades Comp Vale Do Rio (RIO 32.46) to Equal Weight from Overweight. Miscellaneous: ThinkEquity initiates Intellon Corp (ITLN 6.06) with a Buy and a $10 tgt… Cowen says their recent Trina Solar (TSL 47.68) plant visit indicates ingot/wafer capacity is ahead of the year-end target
08:13 WIRES On The Wires

Cougar Biotechnology (CGRB) announces that the first patient has been enrolled in a Phase I trial of the co’s drug candidate CB3304 (noscapine), an orally active inhibitor of microtubule dynamics… Brightpoint (CELL) announces that its subsidiaries, Brightpoint Middle East F.Z.E. and Brightpoint North America, have been appointed as distributors by Fahad & Patson Gen Trading, the U.A.E. Agent of Neo products… FTD (FTD) announces that FTD and Harry & David will offer Same Day Delivery on a limited selection of Holiday Gift Baskets… Enterra Energy Trust (ENT) announces that it has reached an agreement with its lenders, subject to formal documentation, which provides much needed financial stability.
08:11 USB US Bancorp: In it’s 8-K, discloses charge of approx. $0.09 per share related to VISA litigation in Q4; Charge of approx. $0.04 per share related to a valuation loss (31.60 )

In its 8-K discloses “On December 18, 2007, the SEC accounting staff provided further guidance… that Visa member banks are required to recognize the contingent obligation to indemnify Visa under its bylaws for potential losses arising from the remaining Litigation at the estimated fair value of such obligation in accordance with FASB Interpretation No. 45… the co has determined to recognize, in its fourth quarter financial statements, a charge of approximately $215 million, or $.09 per diluted common share. Also as a result of the guidance from the SEC, the co will not reflect in its fourth quarter financial statements any value for its membership interest in Visa as a result of the Visa Reorganization… the co’s subsidiary, FAF Advisors, manages certain money market mutual funds that invest in asset-backed commercial paper that have experienced stress arising from the recent conditions in the credit mkts… In the fourth quarter, the co will be recognizing a valuation loss, in its financial statements, of $110 mln, or approximately $.04 per diluted common share. Given the nature and credit ratings of remaining holdings of these money market funds, the co does not expect additional valuation issues with the funds and the Company does not intend to purchase additional investments from the funds…”
08:10 JASO JA Solar signs sales agreement with Solaria for up to 60MW in 2008 (71.89 )

Co announces that it signed a sales agreement with Solaria Energia y Medio Ambiente to provide up to 60MW of solar cells in 2008.
08:09 RATE Bankrate: CEO of Bankrate indicates 2008 will be a strong year – Kaufman (47.65 )

Kaufman says in a meeting with mgmt CEO Tom Evans of Bankrate said 2008 is shaping up to be a strong year for the company. The two acquisitions announced two weeks ago in credit card and student finance are integrating well, with RATE’s sales force already selling ads in these areas. Firm says the CEO said in time RATE would hope to drive margins in these businesses higher through reshaping the channels and business models to encourage more direct business through the Bankrate site. Firm says in 1Q08 with the redesign of the website, CEO Evans said Bankrate will offer rate pop-ups and help consumers find higher rates for maturing C.D’s. The firm thinks this should enhance traffic flow to the site and could also be rolled out for other products. This should give advertisers another advertising opportunity, thereby enhancing both traffic and revenue.
08:09 SVVS SAVVIS Comm has the most upside potential within Internet infrastructure segment- Kaufman (26.40 )

Kaufman considers SVVS as having the most upside potential and their top pick within their Internet infrastructure segment. Due to the significant transformation in SVVS that occurred this year and the masking of strong financial performance this caused, they think investors have become overly critical of SVVS and have greatly discounted its ability to execute and achieve its business plan. After further discussions with management since the investor day, the firm has reviewed their model and feel comfortable in the co’s ability to ramp EBITDA in 2H08 and reach its guidance, which was a concern of investors after the investor day. Firm notes, SVVS trades at approx 8x 2008E EBITDA, which is a substantial discount to its peers. Reits Buy and $55 tgt.
08:08 MU Micron tgt cut to $6.50 from $7 at Caris (7.92 )

Caris cuts their tgt to $6.50 from $7 following F1Q08 (November) results that were worse than even their below-consensus estimates. Firm says there are clear long-term demand drivers for both NAND and DRAM, and the memory market does not appear to be structurally broken, but a destructive market share battle and significant manufacturing oversupply will continue to weigh on industry profitability for the foreseeable future. In the absence of any positive catalysts, the firm sees continued downside risk to both consensus estimates and MU stock.
08:06 KNOL Knology upgraded to Outperform at Morgan Keegan (11.70 )

Morgan Keegan upgrades KNOL to Outperform from Market Perform, as they believe economic difficulties will be muted in most of KNOL’s markets and that competition from telco-based triple play initiatives will be extremely minor for the next several years.
08:06 CHUX O’Charley’s: Crescendo Partners discloses nomination of four director candidates for election to the O’Charley’s Board at the 2008 Annual Meeting (15.00 )

Crescendo Partners announces that it has nominated a slate of four director nominees for election to the Board of Directors of CHUX at the co’s 2008 Annual Meeting of Shareholders. Crescendo Partners II, which together with its affiliates beneficially owns an aggregate of 2,496,724 shares, or approximately 11.2% of the outstanding shares, of common stock of the co.
08:05 GNTA Genta announces that the FDA to extend review of data quality submission for Genasense in Melanoma (0.59 )

Co announces that it has received notice from the FDA that FDA has extended its review period of GNTA’s request for correction of certain information that was filed pursuant to the Information Quality Act for an additional 60 days. The requested correction relates to FDA’s assessment of progression-free survival in the Phase 3 trial of Genasense (oblimersen sodium injection) that was presented to the Oncology Drug Advisory Committee that considered GNTA’s New Drug Application for Genasense in patients with advanced melanoma.
08:05 IFX Infineon appoints new CFO March Schroeter – DJ (11.54 )

08:04 SID Comp Siderurgica approves 3-for-1 share split, buyback – DJ (85.08 )

DJ reports the board of the co approved a proposed 3-for-1 share split, the co said in a regulatory filing. SID said the share split would help increase liquidity in the co’s shares, which have more than doubled in value so far in 2007. SID shares closed Thursday at 150.00 Brazilian reals ($83.10) on the Brazilian Stock Exchange, or Bovespa. In addition, SID said that each American depositary receipt would continue to represent a single SID share. SID’s ADRs trade on the NYSE. SID also said it would cancel 4 mln shares held in the company’s treasury. SID’s board also approved a new share repurchase program that will be implemented after a shareholders’ meeting to vote on the board’s proposals.
08:03 BONDX Economic Calendar

Personal income/spending & PCE core inflation at 8:30 followed by UofM sentiment revisions at 10.
08:03 WAG Walgreen beats by $0.02, reports revs in-line (36.25 )

Reports Q1 (Nov) earnings of $0.46 per share, $0.02 better than the First Call consensus of $0.44; revenues rose 10.4% year/year to $14.03 bln vs the $14.11 bln consensus. Co reports Q1 comparable store sales +5.4%, with front-end comparable drugstore sales +4.6%. “We brought stronger expense discipline into play across the company, while making investments that will build and enhance our competitive position. Our store managers and corporate folks did an excellent job of controlling expenses this quarter. We also improved advertising efficiencies while maintaining our weekly sales promotions at a comparable level. To meet the growing needs of an aging population, we are targeting store expansion that will increase our square footage at a rate of about 8 percent per year through fiscal 2009 and beyond. We’ll exceed our goal of operating 7,000 stores in 2010, and we see long-term potential for approximately 13,000 stores in the U.S.”
08:02 RBA Ritchie Bros. upgraded to Outperform from Market Perform at Raymond James (79.82 )

08:02 FRT Fedrl Rlty Inv Trst prices a 2 mln share common stock offering at $81.21/share (81.25 )

08:01 FHN First Horizon revises fourth quarter outlook (18.34 )

Co announces changes in its outlook for fourth quarter 2007 reflecting increasing softness and volatility in residential construction. First Horizon recently completed a review of its reserve for loan losses and real estate portfolios, with an emphasis on higher-risk markets. As a result of that review, First Horizon expects to increase its reserves in the fourth quarter, with an anticipated total provision of approximately $150 million that should significantly exceed net charge-offs of roughly $50 million. First Horizon expects its mortgage segment to report a fourth quarter 2007 pre-tax loss. “The market continues to be volatile and challenging for two of our businesses, and we are acting aggressively to address the issues,” said Jerry Baker, First Horizon CEO. “We are navigating through the nationwide downturn in the housing market by proactively managing problem loans. And we are continuing to downsize our exposure to the housing and mortgage market, shrink our national real estate businesses, and focus on growing our Tennessee banking franchise.”
08:01 PMII Power Medical Interventions receives FDA 510(k) marketing clearance for iDrive intelligent surgical instruments (12.12 )

Co announces that the FDA has cleared its 510(k) application for marketing its patented iDrive surgical devices. The iDrive has been cleared for a broad range of applications in open and endoscopic surgery.
08:01 SWM Schweitzer-Mauduit announces acquisition; expected to increase 2008 diluted EPS to the range of $0.28-$0.34 (26.08 )

Co announces that two of its French subsidiaries have entered into an agreement to purchase the 28% minority interest in LTR Industries, the co’s reconstituted tobacco leaf business in France. The purchase price of 35 mln euros (approximately $50 mln) will be funded through Schweitzer- Mauduit’s existing credit facility. The acquisition is expected to increase Schweitzer-Mauduit’s 2008 diluted EPS in the range of $0.28-$0.34. No impact on current operations is expected, including employment levels, as a result of this transaction.
08:00 WAG prelim $0.46 vs $0.44 First Call consensus; revs $14.03 bln vs $14.11 bln First Call consensus

08:00 Reminder: Today is a quadruple witching options expiration day

Stock options, index options, index futures, and single stock futures are due to expire, which should lead to heightened volatility and volume.
07:59 CC Circuit City misses by $0.33; announces commitment for $1.3 bln asset-based credit facility (6.66 )

Reports Q3 (Nov) loss of $0.64 per share, excluding non-recurring items, $0.33 worse than the First Call consensus of ($0.31); revenues fell 3.1% year/year to $2.96 bln vs the $3 bln consensus. On December 12, 2007, the company received an underwritten commitment from Bank of America, N.A. for a $1.3 bln asset-based credit facility, which would amend and restate its current $500 mln facility. Assuming that current sales and margin trends continue for the balance of the fourth quarter of the fiscal year, the company expects to deliver a modest loss from continuing operations before income taxes for the quarter. In fiscal 2008, the company expects to open 61 to 63 incremental and relocated domestic segment Superstores. The company expects approximately two-thirds of the openings to be in a 20,000 square foot format. In fiscal 2009, the company anticipates that capital expenditures, net of landlord reimbursements, will total between $150 mln and $200 mln. For fiscal 2009, the pipeline process is not complete, but the company currently expects to open 50 to 60 new and relocated Superstores.
07:58 S&P futures vs fair value: +14.3. Nasdaq futures vs fair value: +20.0.

A considerably higher open is expected. Two news items, in particular, are behind the bullish bias. The first is Research In Motion’s (RIMM) better than expected third quarter earnings report and fourth quarter guidance. The second item is a Wall Street Journal report that Merrill Lynch (MER) may be on the verge of receiving a $5 billion cash infusion from Temasek Holdings, a state-owned Singapore investment firm. As a reminder, today is a quadruple witching options expiration day with stock options, index options, index futures and single stock futures due to expire. Trading volume should be heavy as a result.
07:57 NFLX Netflix: Price changes at Blockbuster are potentially very positive – Cantor Fitzgerald (27.24 )

Cantor Fitzgerald notes that yesterday, Blockbuster (BBI) revealed plans to generally increase prices for new and some existing Total Access customers, effective 12/27/07. This, the firm says, is potentially very positive news for Netflix. They say while the magnitude of benefit is unclear, a less competitive environment should help to accelerate NFLX’s customer-acquisition efforts, reduce its subscriber-acquisition-cost, and/or increase its customer-retention efforts -any of which should enhance the co’s financial model. Importantly, they would be surprised to see NFLX follow BBI up the price curve at this point in time.
07:56 Pricing probes on Wall Street gather steam – WSJ

WSJ reports rgulatory investigations into mortgage-securities pricing are examining whether financial cos should have told the public earlier about the declining value of such securities and how they priced them on their books, people close to the matter say. The regulators, led by the SEC, also are delving into whether Wall Street cos placed higher values on their own securities than those they placed on customer holdings, the people say. “As in most investigations, the issue comes down to what did people know and when did they know it,” said Mark Schonfeld, director of the SEC’s New York office. Among the cos the SEC is examining for their mortgage-securities valuations and disclosures are UBS and MS. The probes are among the roughly three dozen investigations opened by the SEC tied to the downturn of the subprime market, which primarily is tied to low-end borrowers.
07:55 PEI Pennsylvania R.E.I.T. announces authorization for up to $100 mln share repurchase program (29.95 )

07:55 CC prelim ($0.64), ex items vs ($0.31) First Call consensus; revs $2.96 bln vs $3.00 bln First Call consensus

07:55 RT Ruby Tuesday downgraded to Underweight at Keybanc- tgt $8 (10.32 )

KeyBanc downgrades RT to Underweight from Hold and sets an $8 tgt, following a pre-announced Q208 loss per share that was approx $0.20 short of prior firm expectations as well as consensus estimates.
07:54 REP Repsol YPF sells YPF stake to Eskenazi, source says – DJ (34.68 )

Repsol shares suspended in Madrid – DJ
07:54 SVR Syniverse Holdings reinstated with a Buy at Deutsche Bank (15.25 )

07:52 NPD China Nepstar Chain Drugstore: Hearing initiated with a neutral at tier 1 firm (17.50 )

07:50 IDCC Interdigital Comm announces that English High Court rules that its European patent is essential to the 3G UMTS WCDMA European standard (20.34 )

Co announces that the English High Court issued a judgment finding that European Patent 0,515,610 (the ‘610 patent), owned by IDCC, is essential to the 3G U.M.T.S. WCDMA European standard promulgated by the European Telecommunications Standards Institute and that this patented invention is infringed by carrying out the method described in the standard. The judicial determination of essentiality is in addition to Nokia’s (NOK) withdrawal of its challenge to the essentiality of another patent, European Patent (U.K.) 0,515,675 relating to pilot codes, effectively conceding that that patent is essential as well.
07:49 RIMM Research In Motion: Another spurt in growth could come from a new designed touch-screen BlackBerry – WSJ (106.99 ) -Update-

WSJ reports anther spurt in growth could come in a few months as a result of a dramatic new design — a touch-screen BlackBerry. At least one European carrier is testing the new design, according to Gus Papageorgiou, managing director, Technology Hardware Research at Scotia Capital. A touch-screen BlackBerry could help RIM compete with Apple Inc.’s popular iPhone, which sells more to consumers than businesses. RIM would have to find a clever way to tailor a touch-screen BlackBerry to business professionals with heavy email habits. One possibility is a rollaway keypad.
07:48 RIMM Research In Motion upgraded to Outperform from Market Perform at Raymond James- tgt raised to $140 from $110 (106.99 ) -Update-

07:46 MPAA Motorcar Parts & Access. initiated with a Buy at Roth Capital- tgt $13 (10.50 )

Roth Capital initiates MPAA with a Buy and sets a $13 tgt, as they anticipate near-term growth within the DIY (do-it-yourself) segment will be driven by MPAA’s existing retail customers, which are currently experiencing slight softness and expect the co to generate substanial gross margin expansion as inefficiencies are eliminated and lower production costs are realized.
07:45 Goldman’s Cohen tells paper U.S. recession unlikely – Reuters

Reuters reports the US economy is unlikely to slip into recession, Abby Joseph Cohen, chief investment strategist at Goldman Sachs, said in remarks published on Friday. “That does not mean that the probability of a recession is zero. We just think that a slowing in growth is more likely than a recession,” Cohen told Germany’s Sueddeutsche Zeitung newspaper.” “The Federal Reserve has shown in recent weeks that it is paying attention and that it wants to boost people’s confidence,” she added. While there was weakness in U.S. housing construction and some areas of private consumption, this would be offset by export growth and corporate investment, she said. Goldman expected U.S. economic growth of 1.8% next year, weaker than other institutions are predicting, she said, adding that the bank nonetheless viewed shares as undervalued. Cohen told the paper that the trend in U.S. inflation would remain moderate. Central banks did not have to worry about wage increases and could concentrate on the current problems on financial mkts.
07:44 RIMM Research In Motion: Color on quarter (106.99 )

UBS says F3Q results and F4Q guidance should alleviate fears of business slowdown. The firm notes Gross margin was 50.7%, in-line with their ests. The firm believes order visibility to F4Q08 qtr is very good given the lead times and close to one month of the quarter already completed. They expect carriers’ promotional activities around Valentine’s Day to result in a strong month of February to finish off F4Q. The May quarter should also benefit from normal seasonal growth. UBS raises their tgt to $155 from $150… Citigroup says RIMM turned in a solid quarter in a difficult macro environment and uncertainty over financial services exposure. The firm says the co had tremendous fundamental and stock performance in 2007 and they look for more of the same in 2008. They think the smartphone market is growing 50-60% for the next few years, and RIMM is the pure-play leader in the space and their top North American handset stock with sales growth of 60% and EPS growth of 65-70% in CY08… Oppenheimer notes RIMM posted slightly better than expected performance for the Nov qtr and provided somewhat better than anticipated guidance for the Feb qtr. As a result, they anticipate that the shares will move higher today. The firm says the next model is expected to be a touchscreen device, designed to compete with the Apple (AAPL) iPhone. They believe that this device, which may be called the 9000, will include Wi-Fi and GPS. This morning’s Journal hypothesizes that this new model could include a rollaway keyboard, to appeal to conventional BlackBerry e-mail users. The firm believes that this new RIMM model could be launched in the second calendar quarter of 2008, although some analysts expect that it might be available sooner.
07:41 Friends Provident locks exit from 1.2 bln pounds property fund – Times of London

Times of London reports the crisis in the commercial property investment mkt deepened last night as Friends Provident froze its 1.2 bln pounds flagship fund after a rush for the exit by investors over the past three weeks. Friends’ move affects up to 118,000 individual investors in its 24-year-old property fund. Britain’s fourth-largest insurer, already in the thick of a strategic review, suspended redemptions in the fund for up to the next six months. Previously investors would have had immediate access to their capital. Friends said that its move reflected a sharp downturn in commercial property values in the wake of the credit crunch. It said that if it had carried on letting investors pull their money, it might have been forced into a fire sale of property assets to part-finance withdrawals.
07:40 RFMD RF Micro Device: Acquisition of Filtronic appears positive on several fronts – Think Equity (5.81 )

Think Equity believes that RFMD’s announcement that it intends to acquire Filtronic’s Compound Semiconductor business is a positive development for the co in the near and long term as it should: alleviate RFMD’s capacity constraints, provide a lift to gross margins, provide additional high-margin revenues in MPG, and provide additional IP for its stand-alone switch business.
07:39 UBS UBS faces rebellion over fund injection – FT (45.31 )

FT reports the co faces a shareholders’ revolt over plans for a massive infusion of funds from Singapore and the Middle East to improve its capital ratios. The move comes as the Financial Times learned that the mystery Middle Eastern investor ploughing $1.73 bln into UBS’s recapitalization is from Saudi Arabia. “It’s a reasonable assumption the ruling family was involved and approved [the deal],” said one figure with knowledge of the negotiations. Details of the Saudi royal family’s involvement were unclear but one banker believed Prince Sultan, the crown prince and defence minister, was a leading figure in the deal. The investment is understood to be the result of a long relationship between the private banking arm of UBS for the Middle East, headed by Michel Adjadj, and the Saudi royal family. The investor’s insistence on anonymity was among concerns raised by critical UBS shareholders on Thursday. One influential Swiss institutional investor called on shareholders to reject the proposal to raise $1.73 bln from sovereign wealth funds. A second demanded a special audit to look at how the bank could have made such massive losses.
07:36 TSL Trina Solar: Recent plant visit indicates ingot/wafer capacity is ahead of the year-end target- Cowen (47.68 )

Cowen says their recent plant visit indicates ingot/wafer capacity is ahead of the year-end target, thanks to installation of jumbo multi-crystalline furnaces. Firm says polysilicon supply and cost remain risks, but mgmt sees several potential sources to achieve aggressive 2008 production goals. They say TSL plans a series of investor meetings, January 7-17th, which should include an update on the polysilicon plant project and likely lift the shares. At under 17x Street 2008E EPS (and <12x 2009E) firm believes the risk/reward is very attractive.
07:35 WM Washington Mutual: SEC probes WaMu on appraisals – WSJ (14.67 )

WSJ reports the SEC is investigating how retail bank Washington Mutual Inc. handled and reported on mortgage loans that may have been based on inflated home appraisals. The SEC’s inquiry is in its infancy and involves several possible issues, including whether WaMu accurately disclosed to investors of mortgage-backed securities how its loans were appraised as well as whether the co properly accounted for its loans in financial disclosures to investors of the company, according to the people familiar with the situation. Washington Mutual said in a statement: “We are voluntarily and fully cooperating with the SEC’s inquiry as well as the [Office of Thrift Supervision]” — WaMu’s federal regulator — “and look forward to bringing the facts to both the regulators and public.”
07:35 CENT Central Garden initiated with a Hold at Jefferies- tgt $5.25 (5.74 )

Jefferies initiates CENT with a Hold and sets a $5.25 tgt, based on drought conditions persisting in the East, aquatics continuing in decline and wild bird seed under increasing competitive threat.
07:34 ZINC Horsehead Holding: New hedges provide a floor for 2008 outlook – FBR (15.12 )

FBR notes that yesterday, just before the close, ZINC announced put hedges for 2008 that essentially protect the 2008 outlook below $1/lb zinc. These hedges should significantly reduce any future commodity-related weakness for the stock while still providing upside should zinc prices recover, which they think is a good possibility. Although the cost of the hedges has not been released, the firm believes that it should be significant. Regardless, with a floor provided for 2008 cash flows, they say the stock should react positively to this announcement.
07:34 AAUK Anglo American buys 70% of Australia coal mine for $620 mln – Hemscott.com (28.90 )

07:31 DFS Discover Financial Services downgraded to Neutral at Calyon- tgt $15 (15.46 )

Calyon downgrades DFS to Neutral from Buy and lowers their tgt to $15 from $24, following Q407 EPS that was above firm and consensus estimates with dollar volume and transaction growth much weaker than expected.
07:31 CRS Carpenter Tech to sell ceramics businesses to UK-based Morgan Crucible; approves new share repurchase program of up to $250 mln (70.97 )

Co announces it has agreed to sell its ceramic operations to The Morgan Crucible. The sale of Certech and Carpenter Advanced Ceramics reflects CRS’s strategic decision to focus on global markets for high performing specialty alloy products. Pre-tax proceeds from the sale will be approx $147 mln. The ceramics operations represent about 5% of CRS’s total revs with combined annual sales of $91 mln and operating income of approx $15 mln in fiscal 2007. The co also announces a new share repurchase program of up to $250 mln of CRS’s outstanding common shares.
07:31 PDE Pride Intl downgraded to Neutral at Calyon- tgt $33 (31.26 )

Calyon downgrades PDE to Neutral from Add and lowers their tgt to $33 from $44, as they believe that concerns over weakness in the GOM jackup market will result in a more modest valuation.
07:30 TV Grupo Televisa wins ruling against Univision – Latimes.com (24.21 )

Latimes.com reports Grupo Televisa (GTV) has won a court ruling that could allow the Mexican broadcasting giant to move closer to ending its tumultuous relationship with Univision Communications, the largest Spanish-language media company in the United States. U.S. District Court Judge Philip Gutierrez in Los Angeles on Monday denied Univision’s request to dismiss several claims made by GTV in a 2-year-old lawsuit. The judge said there was enough evidence for a jury to decide whether Univision acted in “bad faith” when dealing with its partner from Mexico. The lawsuit is a high-stakes gambit by GTV to break a 1992 programming agreement that gives Univision exclusive use of GTV’s popular shows in the U.S. through 2017. GTV has long felt that the agreement is unfair and doesn’t pay the Mexican co for the full value of its programming. If it prevails in the upcoming trial, GTV could end the contract 10 years early and then sell its shows for a much higher price to Univision or a competitor such as NBC Universal’s Telemundo, which has struggled in the shadows of Univision. Or, GTV could use the lawsuit and the trial, scheduled to start March 18, as leverage to negotiate a sizable equity stake in Univision, which was acquired this year for $13.7 bln by a consortium that includes Los Angeles billionaire Haim Saban and four private equity firms.
07:30 NMSS NMS Comms: Comfortable with 4Q:07 estimates- Cantor Fitzgerald (1.65 )

Cantor Fiztgerald maintains their Buy and $2.75 tgt on NMSS saying they are comfortable with their 4Q:07 revenue and pro forma EPS estimates of $23.7 mln and $0.00 respectively (consensus is $0.00 on revs of $23.4 mln). They still believe that management is restructuring NMSS with the goal of disposing of at least one of the co’s business units. They think that the most likely candidate for such action is the AccessGate product.
07:24 EPL Energy Partners announces another dry hole, stock will likely remain cheap- Jefferies (12.29 )

Jefferies notes a string of dry holes, a failed bid to sell the company, and the worries of a hurricane season have put shares of EPL under pressure. The firm believes the stock is currently trading at a significant discount to its NAV, thus are maintaining their Buy and $23.50 tgt. Firm notes EPL announced another dry hole, resulting in $10.7mn dry hole expense. The firm says although they believe EPL is cheap, until the co demonstrates it can add value through the drillbit or other means, it will likely remain so.
07:24 BPOP Popular Inc: Sees a net loss for FY 2007 (9.99 +0.08)

The co announces “that its Board of Directors at a meeting held on December 19, 2007 acted upon two matters that will impact the co’s financial results for 2007: (1) a recharacterization of certain securitization transactions previously entered into by Popular Financial Holdings as sales instead of secured financings, and (2) the preliminary results of the goodwill impairment analysis at E-LOAN… As part of the co’s strategy of exiting the subprime business at PFH and improving its capital ratios, as of December 19, 2007, Equity One and the trustee for each of the related securitization trusts amended the provisions of the related pooling and servicing agreements to delete the provisions that prevented us from removing the loans from our books… When accounting for the transfers as sales… we currently estimate that the aggregate value of IOs and MSRs recognized in connection with the resulting sale accounting treatment will be in a range of $20 mln to $95 mln. Under this assumption, we expect that this transaction will result in a net loss before tax impact in the fourth quarter of 2007 of between approximately $90 mln and $165 mln… After exiting the wholesale subprime mortgage origination business in January 2007, we believe that accounting for these transactions as sales on our financial statements reflects our current strategy… As a result of the recharacterization transaction described above, based on data from September 30, 2007, PFH’s subprime mortgage loan portfolio would decrease by approximately $2.4 bln, out of $3.1 bln in subprime mortgage loans originated through the exited wholesale channels at PFH… E-LOAN’s estimated net losses for the year 2008 are expected to decline by approximately $28 mln… At this stage, we are working on step two of the goodwill impairment assessment… we believe that the maximum amount of goodwill and trademark impairment that could result would be approximately $175 mln… As a result of the charges… the co would incur a net loss for the year ended December 31, 2007.”
07:21 ULTA Ulta Salon initiated with an Outperform at Cowen (16.75 )

07:20 CAO CSK Auto tgt cut to $5.50 from $11 at Friedman Billings (4.82 )

Friedman Billings notes CAO held its first earnings call in over two years and ushered in a new era for the company, as new leadership is poised to implement significant change and is noticeably action-oriented. However, this is clearly going to be a long process, as the co’s limited financial flexibility will hamper its ability to aggressively pursue incremental investment across its business. In the near term, the firm says they remain concerned with the health of the co’s markets in the West and Midwest, as their analysis suggests that the co’s exposure to the mortgage/housing environment is 30% worse than a year ago.
07:20 GFA Gafisa profiled in New America section of IBD (33.98 )

IBD reports long for the housing mkt’s good old days? Try heading to Brazil. Thanks to a stable and robust economy, lower interest rates and expanded credit, the housing mkt in South America’s largest nation is starting to take off. Sizing up the new opportunities, home builders are scrambling to produce enough new housing units to meet pent-up demand. One of the most ambitious is Gafisa, Brazil’s second largest home builder. Gafisa set up two separate cos to serve “normal segments of the population,” as Wilson Amaral de Oliveira, CEO of GFA, put it. Of Gafisa’s two new cos, Fit Residential focuses on homes averaging the equivalent of $45,000. Moving down the scale a bit, Bairro Novo will be building even more affordable housing at prices of about $30,000 to $40,000. They’ll be in large developments outside major metro areas. Merrill Lynch terms Bairro Novo “a giant in the making.” Is a real estate bubble brewing? While “small bubbles” of oversupply might affect some niche areas — Sao Paulo, perhaps — “demand is so huge I don’t see it happening,” Daniel Citron, managing director in Brazil of the global real estate co Tishman Speyer, said. “Many banks are growing their real estate areas,” Citron said. “They see this as a big opportunity.” Gafisa’s higher-end real estate still generates most of its revenue, which analysts expect to total $666 mln this year. That’s more than double 2006’s total. Analysts estimate earnings will grow about 53% this year and over 200% next year as more new projects are completed.
07:18 MBI MBIA Inc tgt cut to $30 from $35 at Friedman Billings (19.95 )

Friedman Billings notes yesterday, during market hours, Fitch put MBI on Ratings Watch Negative and expects MBI to raise an additional $1 bln in capital within the next four to six weeks to maintain its essential triple-A rating. In anticipation of the additional capital raise, the firm is cuting their tgt to $30 from $35 to reflect the earnings and book value dilution, as well as a discount to projected book value of $38, given the uncertainty around the execution of another round of capital enhancement activities.
07:14 SAY Satyam Computer C4Q early read, checks look good- Susquehanna (26.43 )

07:10 CSIQ Canadian Solar: Turn around story; waiting for better entry point- Broadpoint (25.73 )

Broadpoint says the co is a turn around story but they are waiting for a better entry point. They say partial vertical integration strategy offers flexibility and margin expansion. Firm says the highly leveraged balance sheet is a concern, but recent improvements are encouraging. They see potential upside surprise from wafer facility ramp and metallurgical grade silicon strategy.
07:09 MMC Marsh McLennan announces search for new CEO (24.89 )

Co announces that its Board of Directors has initiated a search for a Chief Executive Officer to replace Michael Cherkasky, who has served as President and Chief Executive Officer of the company since October 2004. The Board of Directors has determined that a change in leadership will best enable MMC to move forward and enhance shareholder value.
07:08 ASYS Amtech Systems initiated with a Buy at Broadpoint – tgt $18 (11.25 )

Broadpoint initiates ASYS with a Buy and an $18 tgt saying is a unit play on solar OEM capacity expansion. The firm says the co has $45 mln in solar backlog driving revenue growth. The firm also says FY08 is a growth year, but solar business will mature in FY09.
07:08 WIRES On The Wires

Millennium Pharmaceuticals (MLNM) announces the submission of a supplemental new drug application with the FDA for VELCADE in the treatment of patients with previously untreated multiple myeloma… Caraustar Industries (CSAR) announces that it has acquired Mayers Fibre Tube & Core. Mayers is a manufacturer of construction tubes, waxed void tubes, paper cores, plastic test cyclinder molds, paper mailing tubes and metal end containers. The terms of the transaction were not disclosed.
07:07 SMG Scotts Miracle-Gro initiated with a Buy at Jefferies- tgt $47 (37.89 )

Jefferies initiates with a Buy and a $47 tgt saying they view SMG as a core consumer brand holding for a multi-year time horizon, which is attractively valued at current levels. The firm says Scotts continues to take market share by leveraging its brand strength, marketing prowess, strong retail relationships, superior logistical infrastructure, excellent management, and large free cash flow.
07:06 FMP Feldman Mall Properties reports Q3 FFO of $0.04 vs ($0.01) single estimate; reports revs down 3% yr/yr to $14.9 mln vs $12.2 mln single estimate (3.34 )

07:04 CALLS Early Research Calls IV

Upgrades: RBC upgrades Genomic Health (GHDX 21.20) to Sector Perform from Underperform… RBC upgrades Itron (ITRI 85.15) to Outperform from Sector Perform… ThinkEquity upgrades Kenexa (KNXA 20.74) to Buy from Accumulate with a $33 tgt based on valuation. Downgrades: RBC downgrades Genitope (GTOP 2.59) to Underperform from Sector Perform… Morgan Stanley downgrades Comp Vale Do Rio (RIO 32.46) to Equal Weight from Overweight. Miscellaneous: Rodman & Renshaw initiates PowerSecure International (POWR 13.22) with an Outperform and sets a $19 tgt, as they believe the co should benefit from secular growth in the energy management market as organizations of all sizes move to curtail energy costs and see growth coming from its efforts to expand its presence outside Southeast U.S.
07:03 FBR Friedman Billings announces increase in share repurchase authority, suspension of cash dividend, the sale of loans and other material developments (2.96 )

Co announced that its Board of Directors has approved an increase in the number of shares of the Company’s Class A common stock that the Company is authorized to repurchase from 50 bln shares to an aggregate of 100 bln shares, of which 23.6 bln shares have already been repurchased. The Board has worked with management over the last month to explore a variety of potential strategic alternatives with a view to increasing shareholder returns, because the Board continues to believe that FBR’s stock price does not accurately reflect the underlying value of the Company. FBR also today announced that it completed the sale of its on-balance sheet securitized loan portfolio. As a result of the sale, $3.1 bln of securitized loans held for sale and $3.1 bln of related securitization financing have been eliminated from the Company’s balance sheet. The Company also announced today that the Board has decided not to pay a cash dividend this quarter. The Company also expects to write-off goodwill of approximately $108 bln in the fourth quarter of 2007.
07:02 VIP Vimpel Comms confirms it will acquire 100% of the Outstanding Shares of Golden Telecom for $105 in Cash Per Share (39.38 )

Co and Golden Telecom (GLDN) confirm that a definitive merger agreement has been entered into between Golden Telecom and two wholly-owned subsidiaries of VimpelCom, VimpelCom Finance B.V. and Lillian Acquisition. Pursuant to the merger agreement, Lillian Acquisition will commence a tender offer on or before January 18, 2008, to acquire 100% of the outstanding shares of Golden Telecom’s common stock at a price of $105 per share in cash, implying a total equity value of approximately $4.3 billion. The offer price is $105 per share.
07:01 CALLS Early Research Calls III -Update-

Miscellaneous: CIBC initiates ARYx (ARYX 8.49) with an Outperform and a $16 tgt saying they believe ARYX is very attractive at current levels, though near-term clinical data catalysts are limited. The firm believes success with any of ARYX’s programs would drive substantial upside in the stock… Citigroup initiates Hasbro (HAS 25.85) and Mattel (MAT 19.96) with a Hold… Citigroup initiates Marvel Entertainment (MVL 27.12) with a Sell… Lehman initiates Lumber Liquidators (LL 8.80) with an Equal Weight… Stanford initiates Tercica (TRCA 7.52) with a Buy and a $10 tgt… Lehman initiates Sniverse Tech (SVR 15.25) with an Overweight and a $21 tgt… Jefferies initiates Whiting Petroleum (WLL 56.26) with a Buy and sets a $66 tgt, as they expect to see a marked improvement in ‘08 and beyond regarding F&D costs, underscored by its Bakken/Piceance development programs and declining capital allocation for enhanced oil recovery projects… ThinkEquity initiates Intellon Corp (ITLN 6.06) with a Buy and a $10 tgt saying believe powerline communications has one of the broadest possible applicabilities, given that almost all households on Earth have numerous outlets. This differentiates it against other technologies based on coaxial or telephone wiring, which is less prevalent.
07:01 CEVA Ceva to divest equity in GloNav following GloNav’s acquisition By NXP Semiconductors for $110 mln (12.94 )

Co announces that it will divest its ownership stake in GloNav, a U.S.-based fabless global positioning systems semiconductor co, following GloNav’s acquisition by N.X.P. Semiconductors for an initial cash payment of $85 mln, plus up to $25 mln in cash contingent upon GloNav reaching certain rev and product development milestones over the next two years. The value of CEVA’s shareholding in GloNav, based on its ownership percentage and the acquisition purchase price, is approx $17 mln, over four times the recorded value of approx $4 mln for the GloNav investment in CEVA’s financial statements.
07:00 APPA AP Pharma announces Chief Executive Officer succession plan (1.47 )

Co announces that its board of directors has initiated an executive succession program designed to recruit a well-qualified successor for Gregory Turnbull, the co’s current President and Chief Executive Officer.
06:40 WIRES On The Wires

SABMiller and Molson Coors Brewing (TAP) announces that they have signed the definitive transaction agreement for the combination of the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, into MillerCoors, the joint venture that they announced on 9 Oct 2007… Lexicon Pharmaceuticals (LXRX) announces that it has submitted an investigational new drug application to the FDA for LX1032, an oral drug candidate for managing gastrointestinal symptoms associated with carcinoid syndrome.
06:34 CALLS Early Research Calls II

Upgrades: Keefe, Bruyette upgrades First Horizon (FHN 18.34) to Market Perform from Underperform and maintains their $18 tgt, based on valuation… Baird upgrades IMS Health (RX 22.67) to Neutral from Underperform and raises their tgt to $25 from $24, as they believe 2008 guidance and results may approximate Street expectations when delivered and believe valuation has neared trough levels… Lehman upgrades Schering-Plough (SGP 26.20) to Overweight from Equal-weight… UBS upgrades Rite-Aid (RAD 2.80) to Buy from Neutral…Bear Stearns upgrades Research in Motion (RIMM 106.99) to Outperform from Peer Perform. Miscellaneous: Baird initiates Data Domain (DDUP 25.06) with an Outperform and sets a $34 tgt, as field checks indicate the co’s unique hardware-based solution offers a compelling performance and ease-of-use advantage relative to competitors and expect the addressable optimized disk-to-disk storage market to be about $250 mln in ‘07, growing to approx $1 bln in ‘09.
06:30 CALLS Early Research Calls I

Miscellaneous: Rodman & Renshaw initiates Peregrine Pharma (PPHM 0.38) with a Market Perform, as they prefer to establish a position closer to the mid-08 timeframe given that key data from Cotara Phase 2 study is expected in 2H08… Merriman initiates Jones Soda (JSDA 7.60) with a Neutral, as they believe shares will languish until interim management resets expectations and expect greater balance between sales growth and profits going forward… Keefe, Bruyette initiates Anthracite Caital (AHR 8.14) with a Market Perform and sets an $8 tgt, based on concerns about potential weakness in the commercial real estate market… Keefe, Bruyette initiates Newcastle (NCT 14.26) with a Market Perform and sets a $13 tgt, based on concerns about the credit outlook for both the commercial and the residential sectors… Broadpoint Capital initiates Indevus Pharma (IDEV 7.18) with a Buy and sets a $10 tgt, as they expect product revenue growth to accelerate this fiscal year and note primary drivers are Sanctura XR, Nebido and Supprelin LA… Broadpoint Capital initiates Pain Therapeutics (PTIE 10.67) with an Underperform and sets an $8.85 tgt, as they believe PTIE will be required to certify against patents held by Purdue Pharma, which currently cover formulations containing oxycodone and consequently assume Remoxy won’t be launched until late 2010 or early 2011, following the expiration of the 30-month stay.
06:28 European stocks extend gains in broad rally

European stocks extended their early gains on Friday around midday, rising for a second consecutive session as investors scooped up recently beaten-down banking and mining shares in the last full trading session ahead of the Christmas break. At 11:07 GMT, the FTSEurofirst 300 index of top European shares was up 1.3 percent at 1,506.19 points. (Reuters)
06:27 Asian stocks end higher as investors seek bargains

Stock markets across Asia ended higher Friday with Hong Kong and Singapore pacing the advance as investors sought out bargains after the recent selling, although light volumes ahead of the holiday week were exaggerating some of the moves. A report that Singapore’s government investment arm is planning to inject 5 bln usd into Merrill Lynch helped ease worry about the credit crisis, and pushed regional benchmarks higher in late trade. In early December, Temasek invested 11 bln usd in Swiss banking giant UBS. The Straits Times Index closed up 1.2% at 3,398.10. The Hang Seng Index closed up 2.3% at 27,626.92, and the Shanghai Composite rose 1.2% at 5,101.78 as investors shrugged off an interest rate hike in China. In Tokyo, Nikkei closed up 1.5% at 15,257 and the Topix added 0.8% to 1,469.20. The Taiwan weighted index closed up 1.1% at 7,941.44, and the Manila composite index rose 1.2% to 3,532.98. (Thomson)
06:20 S&P futures vs fair value: +13.9. Nasdaq futures vs fair value: +24.3.
06:20 European Markets

FTSE…6426.60…+81.00…+1.3%. DAX…7994.19…+125.00…+1.6%.
06:20 Asian Markets

Nikkei…15257.00…+225.40…+1.5%. Hang Seng…27626.92…+609.83…+2.3%.
06:11 MRK Data about Zetia risks was not fully revealed – NY Times (58.54 )

The NY Times reports new evidence shows that Merck (MRK) and Schering-Plough (SGP) have conducted several studies of their cholesterol medicine Zetia that raise questions about its risks to the liver, but the companies have never published those results. Partial results of the studies, alluded to in documents on the FDA’s Web site, raise questions about whether Zetia can cause liver damage when used long term with other cholesterol drugs called statins. The full report on the trial, known as Enhance, including the number of patients who had liver problems, will not be available until March. A Schering executive, when asked by a reporter about the unpublished studies, confirmed their existence. But the executive said the companies had not considered the studies scientifically important enough to publish their findings. Some may eventually be published, he said.
06:06 WIRES On The Wires -Update-

Illumina (ILMN) announces that the US Patent and Trademark office has ordered the re-examination of U.S. Patent Nos. 6,355,432 and 6,646,24… Dell (DELL) signs an agreement to acquire privately held The Networked Storage Co; financial terms weren’t disclosed… Double Eagle Petroleum (DBLE) announces the co completed drilling 33 wells in the Catalina Unit within the Atlantic Rim; DBLE has 6 new wells in the Catalina Unit hooked up to sales, currently producing approx 1.5 MMcfd, bringing current total production in the Cow Creek Field to approx 6.3 MMcfd.
06:02 FMX Bill Gates’ Cascade Investment fund buys stake in Femsa according to Schedule 13G (36.26 )

According to SEC Form Schedule 13G, Rule 13d-1(c), Bill Gates’ Cascade Investment LLC owns 10.81 mln shares in ADRs of Femsa (FMX), or about 3%. The filing showed that Gates owns a 1.2% stake in Femsa’s Series B shares, a 5% stake in Series D-B shares, and a 5% stake in Series D-L shares.
05:51 CSCO Cisco changes management structure – AP (28.28 )

AP reports a ”development council” composed of several executives will replace Cisco Systems (CSCO) CEO heir-apparent Charles Giancarlo, who has resigned. Cisco Chairman and Chief Executive John Chambers announced the appointment of the group of executives to oversee acquisitions and other business deals on Thursday after he confirmed Giancarlo, his chief development officer, was leaving. Chambers said in a conference call he and Giancarlo held with reporters that Cisco is shifting from a ”command and control” organization to a network of task forces and other teams. Chambers said he had no intention of naming another individual to be chief development officer and he might appoint multi-person councils to lead other divisions of the co if it the development council works well. We note the co issued a press release on 12/20 at 16:16 in regards to this executive change.
05:48 F Tata set to win Ford brands: Reports – Retuers (6.79 )

Reuters reports Tata Motors (TTM) is set to be named as the preferred buyer for Ford Motor’s (F) luxury brands Jaguar and Land Rover as early as Friday after beating rivals with a bid of around $2 bln, Indian and British media reported. “The group has had its 1 billion pound bid ($1.98 billion) accepted by Ford … The firm has beaten off competition from rival Indian firm Mahindra and Mahindra and private equity group One Equity Partners,” the Birmingham Post reported, citing unnamed Land Rover sources. “It is definitely Tata. There is one final meeting and so long as there are no last minute hitches, which are not expected, an announcement will be made on Friday,” one of the sources said. The Financial Times, citing people close to the situation, said Tata had pulled ahead of Mahindra & Mahindra and One Equity, with an offer in the range of $1.8 bln to $2.2 bln.
05:45 DNA Genentech and eye doctors settle dispute over Avastin – NY Times (67.96 )

The NY Times Genentech (DNA) appears to have resolved a dispute with ophthalmologists that will allowAvastin to continue to be used to treat eye diseases, both sides announced on Thursday. Genentech infuriated many eye doctors in October when it announced a change in the distribution of Avastin that would have made it difficult for the doctors to use the drug. The doctors accused the co of trying to force them to use a much more expensive Genentech drug, Lucentis, instead. But on Thursday, Genentech and two societies of eye doctors announced that doctors would be able to purchase Avastin themselves and have the drug delivered to compounding pharmacies. That would allow them access to the Avastin but would also enable Genentech to stop selling the drug to compounding pharmacies as of Jan. 1. The co has said that its sales to the pharmacies provoked concern at the FDA because Avastin was not manufactured for use in the eye. In a joint e-mail message sent to their members on Thursday, the American Academy of Ophthalmology and the American Society of Retina Specialists said they believed that the plan addressed “the needs of most of their members.” The message cautioned, however, that some states might have regulations that would make it difficult to use this new arrangement.
05:40 GLDN VimpelCom acquires Golden Telecom – WSJ (100.06 )

The Wall Street Journal reports Vimpel Communications (VIP) has agreed to acquire broadband and fixed-line operator Golden Telecom (GLDN)for about $4.24 bln, according to a person familiar with the matter. Under the deal, which was expected to be announced today, VimpelCom will pay $105 for each Golden Telecom share. The two companies disclosed this month that they were in talks. The deal would give VimpelCom, Russia’s second-largest mobile operator, a foothold in Russia’s growing market for broadband, as well as the slowing business of fixed-line telephony. Golden Telecom’s two biggest shareholders, Norway’s Telenor ASA and Russia’s Alfa Group, appear to have put aside their differences to support the deal. The two companies, which also hold stakes in VimpelCom, have been trying to resolve a dispute in connection with their involvement in a Ukrainian telecom operator, Kyivstar. The VimpelCom deal might signal a wider resolution of the long-running conflict between the two.
05:36 MER Merrill may get capital infusion – WSJ (54.50 )

The Wall Street Journal reports Merrill Lynch (MER) is expected to become the latest financial firm to get a capital infusion from an Asian government investment fund. Temasek Holdings Pte. Ltd., a Singapore state-owned investment co, is in advanced talks to inject as much as $5 bln into Merrill, a person familiar with the situation said. The news comes amid analyst predictions that mortgage write-downs at Merrill may double with another $8 billion or more in Q4. Temasek’s board has given preliminary approval to the investment in Merrill, although pricing, timing and regulatory issues remain to be negotiated, the person familiar with the situation said. As such, a deal may still not materialize. It is also possible that Merrill may be in discussions with other government investment funds in addition to Temasek. A Merrill spokeswoman had no immediate comment. A Temasek spokeswoman declined to comment.
05:34 Morning News Summary: MER, VIP/GLDN, DNA, SGP/MRK, TTM/F

WSJ: Merrill (MER) may get capital infusion… VimpelCom (VIP) acquires Golden Telecom (GLDN). NY Times: Genentech (DNA) and eye doctors settle dispute over Avastin… Data about Zetia risks was not fully revealed (SGP)(MRK). Reuters: Tata (TTM) set to win Ford (F) brands: Reports. AP: Cisco (CSCO) changes management structure.
02:23 RESP Royal Philips Electronics to acquire Respironics for $66.00 per share (53.11 )

Co announces it has entered into a definitive merger agreement pursuant to which Royal Philips Electronics (PHG 44.15) will commence a tender offer to acquire all of the outstanding shares of Respironics for $66.00 in cash per share, or a total purchase price of approx $5.1 bln. The Board of Directors of Respironics has unanimously approved the transaction and recommends that Respironics shareholders accept and tender their shares into the offer. The tender offer is expected to commence by January 8, 2008 and is subject to customary conditions, including the tender of at least a majority of the shares and the receipt of U.S. and European regulatory approvals. The offer is not subject to any financing contingency, and the transaction is expected to be completed in Q108.
02:12 LINE Linn Energy to acquire oil and gas properties from Lamamco Drilling for $552 mln (22.88 )

Co announces that it has signed a definitive purchase agreement to acquire certain oil and gas properties located primarily in the Mid-Continent from Lamamco Drilling for a contract price of $552 mln, subject to purchase price adjustments. Acquisition will be accretive to LINE’s 2008E distributable cash flow by greater than $0.15 per unit.
02:09 WIRES On The Wires -Update-

Crucell N.V. (CRXL) announces it will receive up to $5 mln from Aeras Global TB Vaccine Foundation to support the advanced development of the candidate AdVac- and PER.C6-based tuberculosis vaccine. Crucell and Aeras also announce the launch of a new Phase I BCG-Ad35 prime boost clinical trial of the AdVac-based tuberculosis vaccine, weeks sooner than expected… UTEK (UTK) has agreed to acquire Pharmalicensing, Ltd. through its subsidiary UTEK Europe, Ltd. for $2.15 mln; Pharmalicensing is an open innovation service for partnering, licensing and business development within the life science and biopharma industry.
00:51 SPRD Spreadtrum Communications mentioned positively in Weekday Trader – Barron’s Online (12.10 )

Barron’s Online reports share of Spreadtrum Communications (SPRD) offer upside because China’s cellular market, the largest in the world, is vast and growing quickly. The co makes chips that manage wireless connections in a cellphone. It is also one of three main suppliers for China’s plans to build a broadband wireless data network next year, known as TD-SCDMA. Spreadtrum at the moment has 16% to 18% share of baseband chips for phones manufactured in China, according to chief strategy officer, Charles Glavin. Glavin believes the co can take the No. 2 spot in chips for China from Texas Instruments (TXN) next year. By giving customers not just a good baseband chip, but also some patented, home-brewed software to run on that chip, Spreadtrum says it can speed up the development time of phones, which it argues is critical as the time to turn out new models becomes accelerated. Sales rose 23% and 20%, from quarter to quarter, in the two quarters that Spreadtrum has announced publicly since its IPO. The one immediate danger is the prospect that the Spreadtrum’s float will increase as a lockup period following the IPO expires next month. But with the shares now underwater, it seems unlikely many holders will dump the majority of their stock.
00:50 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Patterson (PDCO), Coach (COH), Savvis (SVVS) and Apex Silver Mines (SIL).
00:49 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Synchronoss Technologies (SNCR), Monsanto (MON), DuPont (DD), Accenture (ACN), Harris (HRS), Yamana Gold (AUY) and eBay (EBAY).
00:47 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Thursday’s edition, Jim discusses Moog Hill International (HINT) and remain hesitant to recommend shares due to uncertainty regarding its industrial business. Although Cramer liked Moog initially because it was cheaper than other aerospace companies, the additional information he got on the company makes him “hesitant to endorse the stock.” Finally, he reiterates his positive view of Goldman Sachs (GS) and Medco Health (MHS).
00:46 GTF Cytomedix announces that CMS preliminarily affirms non-coverage of PRP gel (1.57 )

Co announces that the Centers for Medicare and Medicaid Services has proposed to reaffirm its 2003 national non-coverage decision for autologous blood derived products for chronic non-healing wounds in a draft response to a national coverage reconsideration requested by Cytomedix. CMS cited a lack of adequate evidence and a need for further study of the product in the surgical and chronic wound care setting, the setting for which Cytomedix sought the broadest national coverage.
00:44 WIRES On The Wires

LeMaitre Vascular (LMAT) acquires Biomateriali S.r.l., a privately held Italian vascular graft manufacturer, for EUR 1.8 mln in cash, the assumption of EUR 0.8 mln in intercompany liabilities, and contingent liabilities of EUR 1.0 – EUR 1.5 mln; the acquisition was structured as a stock purchase… ImageWare Systems (IW) acquires the assets of Sol Logic, a real-time voice recognition and language translation technology co, for $3.2 mln; purchase price will be paid in shares of restricted common stock, to be issued in two tranches over a six-month period.
00:41 WIRES On The Wires

Alphatec Holdings (ATEC) announces the entry into an exclusive worldwide license for an innovative pedicle screw technology that is designed to provide a fusion solution for patients who suffer from osteoporosis or poor bone density… Extra Space Storage (EXR) will join the S&P SmallCap 600 Index after the close of trading Dec. 31, 2007… ISTA Pharmaceuticals (ISTA) announces they have submitted an NDA to the FDA for Xibrom QD; co is seeking approval for Xibrom QD as a treatment for inflammation, pain, and photophobia following cataract surgery… Electro Scientific Industries (ESIO) announces that it has received an order from a North American analog integrated circuit manufacturer for its Model 2100 thin-film-on-silicon laser-trimming system.
00:37 CAPA Captaris to acquire Oce Document Technologies (4.20 )

Co announces that it has agreed to acquire Oce Document Technologies GmbH, a provider of software for document capture, text recognition and document classification. ODT had revenue of approx EUR 22.7 mln in 2007. Under the terms of the acquisition agreement, Captaris will acquire ODT for approx EUR 10.4 mln in cash, net of ODT’s expected cash balance as of the closing of approx EUR 20 mln. Captaris will also assume ODT’s operating and financial liabilities, including approx EUR 12.1 mln in future retirement and bonus obligations. Captaris expects the acquisition to be accretive to EPS in ‘08.
00:34 EWST EnergyWest to acquire natural gas utility (13.64 )

Co and Cut Bank Gas, a natural gas utility serving Cut Bank, MT, jointly announce the execution of a stock purchase agreement among Energy West and certain shareholders of Cut Bank for the sale of 83.16% of the outstanding shares of Cut Bank Gas for a purchase price of $500,000 in shares of common stock of Energy West. In addition, Energy West will offer to purchase the remaining shares of Cut Bank Gas from the shareholders holding such shares for a purchase price of $66.44 per share or approx $100,000 in shares of common stock of Energy West.