Data Feed

08:37 HYC Hypercom: RLR Capital raises stake to 6.3% (4.58 )

08:36 CAS A.M. Castle Signs Agreement to Acquire Metals UK Group; expect the acquisition to be accretive to earnings in its first year

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08:36 AAPL Apple initiated with a Buy at Needham- tgt $235 (194.85 )

08:35 COP ConocoPhillips gives 4Q07 interim update; says Q4 production on a BOE per day basis is anticipated to be approximately 60k BOE/day higher than the previous qtr

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08:35 ICE IntercontinentalExchange reports Dec ADV at ICE Futures Europe Up 19%; and ICE Futures U.S. ADV rises 31% (185.50 )

Co announces record annual volume in all of its business segments, including record OTC commissions. ICE Futures Europe achieved record annual volume for the 10th consecutive yr, with an increase of 49% in 2007 over annual volume in 2006. In 2007, volume at ICE Futures U.S. exceeded 2006 results by 22%. Also for the year ended December 31, 2007, average daily commissions in the OTC segment increased by 39% to $819,739, representing the fourth consecutive year of record commissions.
08:35 Some solar stocks expected to remain hot – IBD

IBD reports many solar co shares shot skyward in 2007, making them among the hottest stocks. Analysts question whether the group can keep up this pace in 2008. There’s much room for growth, but solar cos must continue to depend on govt incentives. Old energy sources are still cheaper. The high valuations have helped attract mutual funds and other institutional buyers to the solar game in the past three to six months, analysts say. Solar stocks also enjoy the unique position of being a pure-play investment for clean-energy cos in the U.S. Unlike Europe, wind energy and other green investments are harder to find on the U.S. mkts. The industry is scrambling to improve its technologies so that it can cut its power costs by half by early next decade. That would put it near the price of traditional electricity and free it from the need for govt incentives. In the meantime, solar demand is strong in many places, especially where incentives have been heavy, including Germany and Spain. Italy, Greece and parts of Asia also have been stoking demand. The U.S. expansion has been led by California’s aggressive solar program. Additionally, the federal govt has been giving some tax credits to solar projects. The tax credits run out at the end of 2008, but Congress might extend them. But one thing is certain: The industry is facing shortages of the key material used to make solar cells, a type of silicon called polysilicon. Some analysts don’t see the shortage working itself out until 2009 or later. (Stocks mentioned include: FSLR, SPWR, STP, GE, JASO, YGE, WFR)
08:32 ATHN AthenaHealth and UnitedHealthcare expand availability of real-time claim adjudication

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08:32 NE Noble Corp names David Williams as Chairman, Chief Executive Officer and President (57.00 )

Co announces that the co’s Board of Directors has named David Williams as Chairman of the Board, Chief Executive Officer and President. William Sears has held these offices on an interim basis since September 20, 2007. Prior to joining Noble, Williams served as Executive Vice President of Diamond Offshore Drilling.
08:32 XNL Xethanol extends research agreement with National Renewable Energy Laboratory (1.25 )

Co announces an extension of its Cooperative Research and Development Agreement on cellulosic ethanol feedstocks, with the National Renewable Energy Laboratory. The agreement has been extended through March 7, 2008. The research focuses specifically on clean fractionation of cellulosic feedstocks into their component parts.
08:32 S&P futures vs fair value: +7.1. Nasdaq futures vs fair value: +4.8.

Futures get a slight boost on the jobless claims data. Just reported, initial jobless claims for the week ended Dec. 29 fell to 336K, compared to the prior revised reading of 357K. Economists expected 345K jobless claims. Meanwhile, agriculture company Monsanto (MON) reported earnings that topped estimates, and raised its FY2008 earnings guidance.
08:31 CYMI Cymer tgt cut to $35 from $40 at BofA (38.13 )

BofA cuts their tgt on CYMI to $35 from $40 and cuts their FY’08 EPS est to $2.28 from from $2.70 (Consensus is $2.87). The firm says channel checks point to Gigaphoton, a Japanese competitor, now breaking into the U.S market in a big way. Channel checks suggest Samsung’s Austin fab recently chose Gigaphoton. They also believe that Intel (INTC) has switched to Gigaphoton for all future purchases of KrF lasers, approx 20-30 systems over the next two years. Intel will use CYMI for the ArF lasers.
08:31 RAD Rite Aid reports December sames store sales -0.5% (2.69 )

08:31 NOVC Novacea says as part of its effort to preserve capital resources it decided to scale back on its clinical development activities for AQ4N (2.99 )

Co announces that, as part of its effort to preserve its capital resources and to fully evaluate strategic alternatives, it has decided to scale back on its clinical development activities for AQ4N (banoxantrone), an investigational anti-cancer prodrug, including discontinuing the recently initiated clinical trial in acute lymphoblastic leukemia and delaying the planned clinical trial in B-cell lymphoma. The co will continue enrollment in an ongoing Phase 1b/2a clinical trial of AQ4N in patients with glioblastoma multiforme, which continues to be a clinical development priority.
08:30 ECONX Initial Claims 336K vs 345K consensus; prior number revised to 357K from 349K

08:28 TomTom says did not see any Q4 market weakness – Reuters

Reuters reports Dutch navigation device maker TomTom said it had not observed any weakness in the navigation market in the fourth quarter after a profit warning from UK retailer DSG had pressured its shares. A TomTom spokesman said mkt data showed that volumes were up strongly in the fourth quarter compared to the previous year. “I don’t have the comparable figures to Q3, but … it’s continuous growth week to week, we don’t see any weakness there,” the spokesman said. (Related stocks: GRMN, NVT, SIRF)
08:26 SCANX Early pre-market gappers

Gapping up: SCRX +15.9%, KONG +12.9%, ENMD +10.8%, MVIS +10.0%, SPN +8.8%, SOLF +8.4%, HIMX +5.4%, NFLX +5.3% URBN +5.1%, EXAC +4.3%, MELI +4.0%, AKNS +3.8%, FBN +3.8%, IFSIA +3.7%, GFI +3.1%, FTI +3.1%, ITWO +2.6%, MVSN +2.4%, HMY +2.3%, SNMX +2.3%, MON +2.3%, PHTN +2.2%, Q +2.2%, STT +2.1%, AUY +2.0%, URI +1.9%, RNWK +1.8%, DNDN +1.8%, BKUNA +1.7%, WATG +1.6%, AU +1.3%, ISIL +1.3%, MWRK +1.3%, SINA +1.2%, CSIQ +1.2%… Gapping down: ATCO -5.3%, SPF -4.1%, AXTI -3.7%, PFCB -3.5%, LEN -3.5%, OSIP -3.5%, CMTL -1.8%, FSCI -1.6%, PNRA -1.5%, BBBY -1.3%, CNET -1.3%, SONC -1.2%.
08:24 BONDX Bond Watch: Perking Up

The market was front-running today’s preview employment data to the upside with a little added push via strong global demand for quality. Yesterday’s unqualified bad manufacturing data, record setting oil price spike & equity meltdown provided a strong start to 08 for bonds & today is seeing some decent follow-through as the near-term stage may be set for more volatility. The 2-10-yr yield spread charged steeper overnight on risk aversion, short end buying but has since pulled back in to 107.5 as curve trade looks to have chosen a near-term steeper bend after batting around below 100 for Dec. Bond prices in the EuroZone are higher despite some better employment data out of Germany while in Japan, bonds were up as those stocks that were open for trade were routed. Treasuries did not get much support from the early ADP employment number but the weekly jobless claim are yet to come. Prices may have difficulty remaining at their lofty levels particularly with payrolls due tomorrow so trade will likely fade the rallies with help from the technician’s eyeing overbought indicators & prices nearing previous tops from Dec.The buck has been knocked back further as rate expectations remain to the downside with the euro ticking up to its best level since late Nov as has the yen, which is also benefiting from further carry unwinding. Gold continues to push along at multi-decade highs now 864.17 (+6.62) on ongoing inflation concerns. Crude has backed off a touch with the front now 99.58 (-0.04) as profits get booked. ADP hit at 40K, a bit better than expected, but still pretty poor regardless how low the bar has been set. Up next initial jobless claims (8:30) & factory orders (10). The euro is at 1.4730 & the yen is at 109.2600 while the 10-yr is unchanged yielding 3.903%.
08:20 CEA China Eastern Airlines: Beijing urges CEA investors to accept deal – fT (101.90 )

FT reports the Chinese govt is pressuring other shareholders in China Eastern Airlines to approve an investment by Singapore Airlines after state-owned Air China, which holds a significant stake in its domestic rival, expressed reservations about the deal. Sasac, a govt entity that controls all large state-owned cos outside the financial sector, including CEA and Air China, has told many of CEA’s largest shareholders not to oppose the deal, according to an executive at one of the carrier’s largest investors.
08:18 Initial Claims – Data due out at 8:30AM ET

08:17 Coal initiation details

Calyon notes industry developments in 2007 have created one of the most prolific periods ever in the coal industry. After a challenging finish to 2006, coal prices surged in 2007 as supply/demand characteristics tightened dramatically. The impact of Asia is causing a shift in global import/export markets, and the US is becoming the swing supplier. The firm says eastern coal prices have already begun to reflect this, and western prices are poised to react. Coal company fundamentals, and hence valuations, are quite leveraged to coal-price movements. The firm says the coal sector shares have surged in 2H07, however, as the market has begun to anticipate the changing industry fundamentals. Given the volatile nature of the group, however, opportunities present themselves. As mentioned at 6:23 the firm initiated Arch Coal (ACI) with a Neutral and a $48 tgt, Foundation Coal (FCL) with a Neutral and a $56 tgt. The firm also initiated Peabody Energy (BTU) with an Add and a $70 tgt.
08:16 S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: -4.3.

Just reported, the Dec. ADP employment number came in at 40K, compared to the 33K expectation. Tomorrow brings the government’s employment report, which carries much more weight. Last month the ADP said employment grew by 189K compared with the government’s report of 94K. Many economists question the accuracy of the ADP report. Futures gain a few points on the data in choppy trade.
08:16 Calyon says solar looks even brighter in 2008; top alternative energy picks are SPWR and FSLR

Calyon highlights their top alternative energy picks — SPWR and FSLR. The firm believes solar will be most impacted by continued global government support, the silicon supply situation and progress toward grid parity. They say key metrics include supportive regulatory actions, the silicon supply/demand situation, continued cost-cutting and individual company announcements such as new customers, additional silicon contracts, margin improvements, and cost-per-watt metrics. They think both SPWR and FSLR are ideally positioned to profitably take advantage of ripe solar market conditions in 2008.
08:15 HIMX Himax Tech: Chi Mei Optoelectronics and TPV Technology take minority ownership stakes in Himax Media Solutions (4.27 )

Chi Mei Optoelectronics and TPV Technology announce they would take minority ownership stakes in Himax Media Solutions, a wholly owned subsidiary of HIMX,focusing on expanding market share in the global LCD TV and monitor chipset market opportunity.
08:15 ECONX ADP Employment Change 40K vs 33K consensus

08:14 ADP Employment – Due to come out at 8:15AM ET

08:13 GRP Grant Prideco downgraded to Hold at Stifel (56.71 )

Stifel downgrades GRP to Hold from Buy noting on 12/17/07, Grant Prideco agreed to be acquired by National Oilwell Varco (NOV) for $23.20/share in cash and 0.4498 shares of NOV stock. The firm says given negligible overlap in product lines, they see little regulatory risk to the transaction.
08:12 WIRES On The Wires

Veeco Instruments (VECO) announces that the M.E. Muller Institute for Structural Biolog has selected its BioScope II Atomic Force Microscope to aid in its cutting edge life sciences research program… SanDisk (SNDK) and PNY Technologies announces that PNY has signed a patent cross-license agreement with SanDisk to settle patent cases filed by SanDisk last year in Federal District Court and the International Trade Commission against PNY flash memory products including USB drives and CompactFlash cards… Watson Pharmaceuticals (WPI) announces it has launched Clarithromycin Extended-Release Tablets, U.S.P in the 500 mg strength… Oculus Innovative Sciences (OCLS) announces that it has completed patient treatment and follow-up in its randomized and controlled Phase II clinical trial evaluating its Microcyn Technology in the treatment of mildly infected diabetic foot ulcers… Airgas (ARG) announces it has acquired the assets and operations of Pima Welding Supply, an industrial gas and welding supply distributor.
08:12 ENSG Ensign Group initiated with a Hold at Stifel (13.75 )

Stifel initiates ENSG with a Hold saying the co has a track record of acquiring underperforming nursing home assets at attractive valuations and “turning around” the operations both clinically and financially. The firm notes on Dec 17, 2007, the co’s auditor, Deloitte & Touche received a subpoena for documents related to Ensign’s operations. While the co had previously disclosed inquires by the D.O.J, the announcement of a subpoena raises the risk for further investigation, and potential fines or adverse judgments against the co. They believe this issue could act as an overhang on the shares near term.
08:11 ARAY Accuray Q2 results should be strong with demand for the Cyberknife accelerating – Jefferies (14.96 )

Jefferies thinks Q2 results should be strong with demand for the Cyberknife accelerating. The firm continues to be encouraged by an expanding backlog, highly favorable reimbursement landscape, impressive top line acceleration and increased interest in the clinical community for the CyberKnife system. Firm notes the decline in ARAY’s stock price since reporting solid Q1 2008 results has created an attractive entry point for investors.
08:10 MON Monsanto beats by $0.11, beats on revs; raises FY08 EPS guidance; sees most robust R&D pipeline in company history (111.47 )

Reports Q1 (Nov) earnings of $0.46 per share, $0.11 better than the First Call consensus of $0.35; revenues rose 36.4% year/year to $2.1 bln vs the $1.87 bln consensus. Co raises guidance for FY08, to EPS of $2.50-2.60 vs. $2.59 consensus, prior guidance high end of $2.20-2.40. The company noted that its free cash flow for fiscal year 2008 is now expected to be in the range of $900 mln to $1 bln vs prior guidance of $800-900 mln. 2008. Strong demand for the company’s corn seed products pulled forward the capital expenditures at its North American corn seed manufacturing facilities which had been previously announced as part of its two-year $610 capital expenditure plan. Co reported on a year of firsts in research-and-development advancements, highlighting some of the most substantial progress the company has seen in the time it has conducted biotechnology research. Monsanto reported that 10 specific projects in its biotech R&D pipeline either advanced from one phase to the next or were added to the pipeline. The update also highlighted the company’s first ever transition of four projects from Phase 2 to Phase 3, an important milestone that underscores the commercial viability and success of the projects.
08:10 SRDX SurModics initiated with an Outperform at Barrington- tgt $65 (54.28 )

Barrington initiates SRDX with an Outperform and a $65 tgt saying they SRDX is the most well positioned co to benefit from the rapid growth of drug-device convergence. SRDX has several large revenue opportunities in the cardiovascular, neurovascular, orthopedic and ophthalmic markets and with the acquisition of Brookwood, SRDX will likely further pursue the systemic drug-delivery market.
08:07 JTX Jackson Hewitt Names Daniel O’Brien Chief Financial Officer (31.38 )

Co announces the hiring of Daniel P. O’Brien as its Executive Vice President, CFO and Treasurer.
08:07 MVSN Macrovision and CinemaNow confirm collaboration to deliver premium online video entertainment to consumer electronics devices (18.05 ) -Update-

Co and CinemaNow confirm that the two companies have integrated their technologies to enable consumers to acquire premium video content and download it directly from CinemaNow to a Macrovision-enabled consumer electronics devices such as digital television sets, set-top boxes, and network attached storage devices.
08:07 KONG KongZhong announces strategic alliance agreement with China Sports Industry Group (6.20 )

Co announces that it has signed a strategic alliance agreement with China Sports Industry Group. Under the agreement, KongZhong and C.S.I.G will become strategic partners and jointly explore business opportunities for developing sports-related content for mobile phones, including wireless value-added services and wireless Internet sites.
08:05 BMY Bristol-Myers’ leukaemia drug Sprycel causes significant pleural effusions that have led patients to discontinue treatment, physicians say – FT Mergermarket (26.13 )

FT Mergermarket reports the co’s leukaemia drug Sprycel causes significant pleural effusions that have led patients to discontinue treatment, physicians told Pharmawire. The FDA recently approved a new dosage regimen in Sprycel tablets, from 70mg twice daily to 100mg once daily. Dr Michael Mauro, associate professor of Medicine in the Division of Hematology and Medical Oncology at Oregon Health Science University said based on his experience, approximately 25% of his patients taking Sprycel at 70mg twice a day had to discontinue treatment due to lung abnormalities. In a Phase 3 dose-optimization study in chronic phase CML patients, the percentage of patients that reported pleural effusions on Sprycel 100 mg once daily or Sprycel 70 mg twice daily were 10% and 18% respectively. Although there is a reduction in frequency with the lower dose, pleural effusions still occur, physicians added.
08:05 FIGI Fortress International Group announces acquisition of SMLB; expected to be accretive in 2008 (4.85 )

Co announces that it has acquired SMLB which provides consulting, facility management, and equipment integration services for mission-critical facilities corporate customers. The initial consideration to be paid in the acquisition consists of $2.0 mln in cash, $500,000 in shares of FIGI common stock, and $500,000 in the form of a promissory note payable to the sellers of SMLB. An additional earn-out of up to $600,000 is obtainable based on operating profit of SMLB for 2008 and 2009. The acquisition is expected to be accretive in 2008.
08:04 AXTI AXT Inc downgraded to Hold at Roth Capital- tgt $6.80 (6.75 )

Roth Capital downgrades AXTI to Hold from Buy and raises their tgt to $6.80 from $6.40 based on valuation, the firm believes AXTI’s fundamentals remain solid.
08:04 DAL Delta/United Airlines merger could be wishful thinking despite talks among mainline carriers, sources say – FT Mergermarket (13.79 )

FT Mergermarket reports although many in the airline trade believe the stars have aligned for mainline consolidation to occur, industry sources told dealReporter that a tie-up of Delta Air Lines and United Airlines (UAUA) may not be realized despite discussions between the carriers. A source familiar with the potential consolidation wave did not rule out the possibility of a tie-up between Delta and another carrier, or United and another carrier. “Who’s to say it’s Delta and United?” he said. Moreover, an industry banker cautioned that this might not be the best strategic combination, and among the most difficult to realize because Delta and United are, respectively, the second and third largest carriers in the US.
08:04 IIVI II-VI Inc upgraded to Buy at Roth Capital- tgt $38 (29.62 )

Roth Capital upgrades IIVI to Buy from Hold based on valuation. The firm believes the co entered F2Q with a strong backlog of $116 mln. The co remains a strong cash generator, as EBITDA was $17.6 mln in F1Q.
08:03 ASEI American Science & Engineering receives multi-million dollar order for Omniview Gantry and ZBV to secure a major port in italy (55.13 )

Co announced the receipt of a multi-mln dollar order for the OmniView Gantry system and the Z Backscatter Van from its local distributor in Italy, AUS.TECH. The systems will be deployed to inspect cargo and vehicles entering a major, high-volume Italian port. “We are very pleased to receive our first order from a major Italian port for the OmniView Gantry and the ZBV.”
08:03 MON sees FY08 $2.50-2.60 vs $2.59 First Call consensus

08:02 MON prelim $0.46 vs $0.35 First Call consensus; revs $2.1 bln vs $1.87 bln First Call consensus

08:02 CLRO Clear One Commun names Greg LeClaire Chief Financial Officer (5.45 )

08:02 WAG Walgreen reports December same store sales +2.6% vs +5% single estimate (37.24 )

08:02 ALNY Alnylam Pharmaceuticals announces that the European Patent Office has granted the previously allowed Tuschl II patent (29.09 )

Co announces that the European Patent Office has granted the previously allowed Tuschl II patent. The European patent broadly covers compositions, methods, and uses of small interfering RNAs. In addition, the co announced that the German Patent Office has granted a new patent (DE10066235) in the Kreutzer-Limmer I patent series broadly covering methods, uses, and medicaments for siRNAs with a length of 15 to 49 nucleotide pairs expressed via vectors.
08:02 CRED Credo Petroleum reports record reserves for Y07 (9.87 )

Co reports that its proved reserves rose 11% yr/yr to 20.5 bln Bcfe. Co replaced 189% of its production for Y07. Natural gas reserves increased 6% while oil reserves increased 40%.
08:01 SNMX Senomyx and Firmenich to collaborate on novel flavors that provide a cooling taste effect (7.17 )

Co announces that they have entered into a collaborative research, development, commercialization and license agreement for novel flavor ingredients intended to provide a cooling taste effect. During the three-year collaborative period, SNMX will use its proprietary screening technologies to discover and develop novel compounds that may be used by Firmenich on an exclusive basis worldwide as ingredients that impart a cool taste in flavor systems. Firmenich has agreed to pay SNMX research fees and specified payments upon the achievement of milestones. Upon commercialization, SNMX will be entitled to royalties.
08:01 NTAP Network Appliance announced a definitive merger agreement to acquire Onaro – no terms (24.62 )

Co announces a definitive merger agreement to acquire Onaro, a privately owned company. Onaro’s software, deployed in 32% of Fortune 50 companies, allows enterprises to manage storage with the highest possible data availability at a fraction of normal operational costs. The acquisition is expected to close in the first quarter of calendar year 2008, subject to customary closing conditions.
08:00 CMTL Comtech Telecom receives $17.7 million in orders for satellite communications and professional support services (52.84 )

Co announces that its subsidiary, Comtech Mobile Datacom Corporation, received orders totaling $17.7 mln under its contract with the U.S. Army Communications Electronics Command. Under the terms of this contract, co provides mobile satellite transceivers, satellite bandwidth, satellite network operations, engineering services and program management. These current orders are for the supply of satellite bandwidth, software licenses, and related professional support services, with all work expected to be completed by June 30, 2008.
07:59 S&P futures vs fair value: +0.8. Nasdaq futures vs fair value: -5.0.

The futures market points to a mixed, but near flat opening for the Nasdaq and S&P 500. There has not been much corporate news this morning. A handful of economic reports are slated for release, including Dec. ADP Employment (8:15 ET), weekly initial jobless claims (8:30 ET) and Nov. factory orders (10:00 ET). Crude oil (-0.1% to $99.47) hit $100 per barrel yesterday, so it will likely be an area of focus for the media.
07:59 MGM MGM Mirage: Optimistic on internal growth prospects and expanding JV oppotunities – Suntrust (81.60 )

Suntrust notes that MGM has a new 20 mln share repurchase program in place, Dubai World has raised its position to 6.5% or 19.6 mln shares, and Michigan has lowered MGM’s gaming tax rate 500 basis points to 19% (retroactive to October 2). They believe these factors will maintain a floor under the shares of MGM and reinforce their Buy recommendation and $100 tgt, representing 12.5x $3.5 bln in 2010 cash flow, discounted back two years. The firm remains optimistic about MGM’s internal growth prospects and ever expanding external joint venture opportunities.
07:56 CRXX Combinatorx upgraded to Buy from Neutral at Piper Jaffray (4.44 )

07:55 JCI Johnson Controls upgraded to Add from Neutral at Calyon- tgt $43, based on valuation (34.59 )

07:55 DELL Dell treads carefully into selling PCs in stores – WSJ (24.39 )

WSJ reports over four months of negotiations last year, Dell executives met with officials of Best Buy to discuss selling personal computers in the chain’s 900 stores. But instead of pushing a broad swath of its products, Dell decided to sell a relatively limited selection through the electronics retailer. Dell’s selective approach at Best Buy is emblematic of the caution with which the PC maker is moving into retail stores. The reason: As Dell broadens from just selling its wares directly over the Internet and by phone, it risks siphoning off its Web customers, who represent the majority of its consumer sales. So Dell has to carefully choose which retailers to link up with and then cherry-pick which products to sell in each store. Best Buy Director Jason Bonfig says the retailer could have stocked all of Dell’s products, but instead “it was, ‘Let’s find the right things for both of us.'” Although, the caution could hurt Dell at a time when its sales need help.
07:53 GFI Gold Fields upgraded to Buy from Neutral at UBS (15.40 )

07:50 CNET CNET downgraded to Hold from Buy at Stanford (8.71 )

07:50 NBY NovaBay Pharma initiated with a Speculative Buy at Dawson James- tgt $8 (3.81 )

Dawson James initiates NBY with a Speculative Buy and an $8 tgt saying they believe NovaBay is an exciting biotechnology company with “best-in-class” product candidates that appear to be effective against bacterial, viral, fungal and even biofilm targets without generating new, drug-resistant strains. The firm says the combination of NovaBay’s partnerships with Alcon (ACL) and Kinetic Concepts (KCI) for eye, ear, sinus, contact lens and wound healing indications, along with NovaBay’s own internal programs for nasal pre-prep and urinary catheter infections, result in a biotechnology company with multiple shots-on-goal.
07:50 COMS 3Com: Bain Capital quiet about probe into 3Com acquisition – InfoWorld.com (4.37 )

InfoWorld.com reports that Bain Capital, a U.S. equity investment firm, declined to comment Wednesday on news reports that a U.S. government panel reviewing a proposed acquisition of networking vendor 3Com plans to extend its review. Bain would get an 83.5% stake in COMS, and Chinese networking giant Huawei Technologies would get the remaining piece in the $2.2 bln deal. The Committee on Foreign Investment in the United States, part of the U.S. Department of Treasury, is investigating whether the investment by Huawei poses a risk to U.S. national security after Bain voluntarily submitted the deal for review in Oct. Bain Capital is working closely with C.F.I.U.S. to provide U.S. officials with information about the proposed transaction,” the co said in a statement. “As stated previously, we believe C.F.I.U.S. will conclude that the company will remain firmly in the control of an American firm, has only a small minority foreign shareholder, and that the deal presents no risks to national security.” Some critics have disagreed. U.S. Rep. Thaddeus McCotter, a Michigan Republican, has called on C.F.I.U.S. to reject the deal. Huawei’s take in COMS, which markets intrusion detection systems, would “gravely compromise” U.S. national security, he said in a House floor speech in Oct.
07:49 MSFT Microsoft: Mossberg Column in WSJ reviews the Mac version of Office (35.22 )

Mossberg writes despite the fierce rivalry between Microsoft and Apple, there is one product on which the two cos work closely together: the Macintosh version of Microsoft Office. Microsoft makes a nice chunk of change from this software suite, which includes Mac versions of the famous Word, Excel and PowerPoint programs. Apple needs the Microsoft office suite so its Macintosh computers can live in harmony with the dominant Windows world. On Jan. 15, Microsoft will be releasing its first new version of Office for the Mac in nearly four years. It is called Office 2008, and it has two big changes from the current version, Office 2004. For one, it is the first edition of Mac Office designed specifically for the new Intel-based Macs that Apple began rolling out two years ago. While the old Office ran adequately on the new Macs, it was slow to launch and slow to perform certain operations. Second, the new Mac Office now reads and writes a new set of file formats Microsoft introduced a year ago in the latest Windows version of Office, called Office 2007. Mac owners receiving files in these new formats had been forced to employ separate and clumsy file converter programs. Microsoft Office 2008 for the Mac is a solid program that I can recommend for anyone with a new Mac. It’s not revolutionary, but it does the job
07:44 WCG WellCare Group: Decision to terminate its CT Medicaid contract not surprising – Jefferies (41.99 ) -Update-

Jefferies notes that after the close yesterday, WCG announced that it had notified the Connecticut Department of Social Services that it will voluntarily terminate its participation in the state’s Medicaid programs effective March 1, 2008. The firm views the co’s decision to terminate its CT Medicaid contract following similar actions by competitors as not surprising, and it does not impact their ’08 earnings view.
07:42 Jefferies cuts their tgts on select Lodging stocks

Jefferies believes the overarching themes heading into ’08 will continue to be the state of the U.S. economy and its effect on lodging demand, investor sentiment, and a renewed focus on lodging company business models. They continue to favor MAR and have adjusted their RevPAR estimates on the large, branded companies to be more conservative given the current economic environment. The firm also cuts their tgt on CHH to $37 from $43, HOT to $68 from $75, and MAR to $50 from $56.
07:40 TRAD TradeStation announces for the month ended Dec 31, 2007, the co had total client assets of $1.8 bln (13.91 )

Co announces business metrics for the month ended December 31, 2007: 1) 77,033 Daily Average Revenue Trades; 2) total client assets of $1.8 bln; 3) average equities client credit balances of $598 mln; and 4) average equities client margin balances of $99 mln.
07:40 CKNN Cash Systems: Department of the Interior approves Seminole compact that could take effect as early as Monday – Merriman (4.36 )

Merriman says according to newspaper reports, the U.S. Department of the Interior approved the compact that was signed between Florida Governor Crist and the Seminole Tribe back in November. The firm notes Seminoles are CKNN’s largest customer, accounting for more than 25% of revs (before the positive impact that they believe this compact would provide). The firm says the compact now has to be published in the Federal Register in order to take effect, which could happen as early as Monday. The firm expects a significant increase in the level of casino traffic and a subsequent increase in the level of cash access transactions. They believe the addition of Vegas-style table games could generate an incremental $24-28 mln in revenues and $0.13-0.15 in EPS annually to CKNN.
07:36 PRICE Filings, Offerings, Pricings and IPOs

Filings: Network Equip (NWK) files for a 1.73 mln share common stock offering by selling shareholders… Neuro-Hitech (NHPI) files for a 3.28 mln share common stock offering by selling shareholders… Bankunited Fin (BKUNA) files for a $400 mln mixed shelf offering… Offerings: OSI Pharm (OSIP) announces a $150 mln convertible notes offering.
07:36 RSH RadioShack upgraded to Market Perform from Underperform at BMO Capital (16.58 )

07:36 KWD Kellwood: Private-equity fund Sun Capital Partners is mulling a hostile conditional tender offer for the Kellwood shares it doesn’t already own – NY Post (17.78 )

NY Post reports Sun Capital Partners is mulling a hostile conditional tender offer for the Kellwood shares it doesn’t already own. The key condition of the offer, which would match Sun Capital’s previous offers of $21 a share, would be the removal of a poison pill in Kellwood’s shareholder rights plan that prevents any one holder from owning more than 20% of the co, according to a source who spoke on the condition of anonymity. Such conditional tender offers – extreme moves taken by hostile bidders to circumvent uncooperative boards – also are typically conditioned on a certain majority percentage of shareholders accepting the offer. While Kellwood currently requires 75% of the shareholder vote for any takeover instead of the usual simple majority, that percentage could potentially fall with the board’s cooperation, sources say. Given the broad weakness seen by retailers this holiday season, some industry insiders speculate that Kellwood’s board may be more amenable to making a deal this spring than they were in the fall. Still, with its offer of $21 a share having been rebuffed twice last year, Sun Capital isn’t necessarily betting that its talks with the board will warm up, according to one source familiar with the buyout co’s thinking. Instead, Sun Capital would be banking on a healthy majority of shareholders to accept its tender. While Kellwood’s board could still block the tender, a convincing show of shareholder support might compel the board to reconsider Sun Capital’s offer ahead of the co’s annual meeting, which is slated for March.
07:34 Brean Murray makes positive comments on SNDA and NCTY

Brean Murray believes investors should take advantage of the recent pullback in shares of SNDA and NCTY to add to positions. Their research suggests key game franchises for both companies have performed well in the past couple of weeks of 2007, and both companies should have had solid 4Q07 revenue. They continue to believe a rebound in WoW will drive the near term performance improvement for NCTY, as we are seeing steady gamer inflow and server additions for the game. They say SNDA continued to expand its pipeline by adding two new games in the past two weeks.
07:34 CRH CRH Plc. issues Y07 preliminary results (35.83 ) -Update-

Co sees Y07 profit before tax to be close to euro 1.9 bln compared to euro 1.602 bln yr ago. 1H was a particularly strong start in Europe significantly outweighing more challenging conditions in the Americas resulting in a euro 144 mln increase in profit before tax to euro 670 mln. 2H is expected to show similar profit growth in 1H resulting in profit before tax for the period of over euro 1.2 bln, compared to 1.076 bln in yr ago period. For Y08, co sees continuing growth in main markets, but at a slower pace than Y07.
07:33 WIRES On The Wires

Smart Balance (SMBL) announces it is forcing the conversion of its Series A Convertible Preferred Stock… ImageWare Systems (IW) announces it signed a two-yr, non-exclusive distribution agreement with iBilt Technologies.
07:31 CBK Christopher & Banks reports December same store sales -1.0% (11.40 )

CEO says, “December same-store sales results were in line with the guidance we provided in our December 27, 2007 third quarter earnings press release. We are very pleased that December merchandise margins showed significant improvement compared to last year despite the challenging retail environment.”
07:31 WATG Wonder Auto Tech tgt raseid to $16 from $13 at Brean Murray (11.05 )

Brean Murray raises their tgt on WATG to $16 from $13 to reflect improved visibility in end-market demand and continued penetration into international markets. They believe management’s 2008 revenue guidance of $140 mln is readily achievable and leaves meaningful room for upside.
07:30 GNVC Genvec announces protocol changes for PACT study after discussions with FDA; regulatory path for TNFerade now clearly defined (1.51 )

Co announces that it has reached agreement with the U.S. Food and Drug Administration to implement changes to the co’s Phase 2/3 pancreatic cancer clinical trial with TNFerade in patients with locally advanced pancreatic cancer: measure overall survival as the primary efficacy endpoint, rather than 12-month survival and conduct two additional interim analyses of overall survival.
07:29 ETRM EnteroMedics initiated with a Neutral at Cowen (8.32 )

07:29 GHDX Genomic Health: Use of Oncotype DX suggested in new NCCN breast cancer practice guidelines – Cantor Fitzgerald (23.03 )

Cantor Fitzgerald notes that the new and updated 2008 NCCN Guidelines for the treatment of breast cancer were published yesterday, and they recommend the use of Oncotype DX as “an option for guiding chemotherapy treatment decisions.” They also note that NCCN now joins the ASCO in recommending Oncotype DX in assessing recurrence risk and for treatment selection. In their view, ASCO and the NCCN’s recommendation for the use of Oncotype DX is an acknowledgment and validation of the wealth of scientific and clinical evidence supporting its current indication. They expect the ASCO and new NCCN guidelines, together with favorable study results presented at the San Antonio Breast Cancer Symposium last month, to facilitate market penetration of Oncotype DX.
07:28 NURO NeuroMetrix upgraded to Buy from Neutral at Suntrust- tgt $14 (9.58 )

07:26 AMY AmREIT: Do not expect portfolio back out to have a material impact on the co’s dividend- Cantor Fitzgerald (7.17 )

Cantor Fitzgerald notes AMY announced the expected buyer of its AAA C.T.L “IHOP” portfolio had backed out of the transaction. They believe the co will continue to pursue other buyers for those assets, which would have provided $4 mln in gains plus back-end interest. Firm notes Q4 has historically been the busiest transaction month for AmREIT. They are reducing their Q4 and FY07 FFO ests to ($0.05) and $0.27, respectively. The firm does not expect this to have a material impact on the co’s dividend, as the co’s has the ability to meet this shortfall.
07:23 CRH CRH plc announces share repurchase program of up to 5% of shares outstanding (35.83 )

The co announces that the Board has decided to introduce a share repurchase programme of up to 5% of the 547 mln shares currently in issue. Shares repurchased on CRH’s behalf under the program will be held as Treasury Shares.
07:21 FBR expects NPAs to increase by 7 to 10 bps for 4Q07; expect this trend to drive a moderate decline in the value of the industry in early 2008

FBR expects NPAs to increase by 7 to 10 bps for 4Q07 when banks/thrifts report earnings later this month. They expect this trend to drive a moderate decline (3% to 5%) in the value of the industry in early 2008. Furthermore, they expect the valuation of the small/mid-cap bank and thrift industry to decline by about 10% during the next six to nine months; and the firm says they would avoid exposure to the industry, except for a few select names. The co under their coverage that experienced the most noticeable deterioration in 3Q07 in the 30- to 89-day delinquency category, which could lead to NPAs and/or NCOs in 4Q07, was PFBC. They expect cos with meaningful exposure to construction, home equity, residential, and consumer loans (including SOV, FTBK, CATY, WBS, PFB, and PFBC), to demonstrate greater increases in delinquencies and/or charge-offs in 4Q07, vs cos with more modest exposure to these products (SIVB, SBNY, NYB).
07:20 SONC Sonic removed from the FBR Top Picks list; FY08 EPS estimates lowered- FBR (21.60 )

Friedman Billings reits their Outperform on SONC but are slightly lowering their FY08 EPS estimate to $1.10 from $1.12 (consensus is $1.12), and are removing SONC from the FBR Top Picks list ahead of the co’s FY 1Q08 earnings report after the close today. The firm says while they continue to like SONC over the longer term with a rich promotional calendar, numerous store-level initiatives, and a differentiated, highly-franchised business model, they believe that earnings in the near term for SONC (as with most restaurant companies) could be choppy in this difficult consumer and operating environment.
07:18 TTM Ford says Tata front-runner to buy European brands – Reuters (19.45 )

Reuters reports Ford (F) said on Thursday that India’s Tata Motors (TTM) was the front-runner to buy its European brands — Jaguar and Land Rover. “Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar/Land Rover business,” said Lewis Booth, Ford executive VP with responsibility for Ford Europe. A source familiar with the matter told Reuters earlier on Thursday that Ford was set to name Tata Motors as the front-runner to buy Jaguar and Land Rover.
07:15 WRNC Warnaco Group profiled in New America section of IBD

IBD reports the co designs, markets and sells brands of intimate apparel, swimwear, denim jeans, sportswear and accessories. Its products are sold under such owned and licensed brands as Calvin Klein, Warner’s, Speedo and Olga. They’re distributed mainly to wholesale customers like department stores and mass merchants. Warnaco’s Calvin Klein business, at about 65% of total revenue, is by far its biggest moneymaker. Chief Executive Joe Gromek sees a good opportunity in opening free-standing accessories stores. The stores will sell a full range of accessories, including handbags, belts and sunglasses. Gromek also sees opportunity in Warnaco’s retail business which represented less than 17% of total revenue in 2007. Gromek sees that rising to around 20% in 2008 as the co adds more points of distribution. Analysts polled by Thomson Financial expect full-year earnings to grow 57% to $2.20 a share, then an additional 13% in 2008.
07:09 WIRES On The Wires

Amedisys (AMED) announces the acquisition of a home health agency in Carolina, Puerto Rico. The transaction closed on January 2, 2008 and is expected to contribute less than $1 mln in net revenue in 2008. The acquisition is not expected to add materially to Amedisys’ earnings in 2008… NicOx S.A. announces that Pfizer (PFE) has initiated a dose-ranging phase 2 clinical study for PF-03187207 in Japan.
07:09 BBBY Bed Bath & Beyond tgt cut to $30 from $40 at UBS (28.36 )

UBS cuts their tgt on BBBY to $30 from $40 saying they remain concerned with the near-term outlook for Bed Bath & Beyond and its shares. Firm says increased competitive pressures and a weaker housing market have weighed upon sales/margin trends at BBBY over the past few quarters. They believe that these factors have further intensified lately.
07:08 SEH Spartech Corp names Myles Odaniell President, CEO (14.31 )

Co announces that Myles Odaniell has been appointed President and Chief Executive Officer and a member of the Board of Directors. Odaniell succeeds Randy Martin, Interim Chief Executive Officer, who will return to his duties as Chief Financial Officer.
07:07 URI United Rentals: Upgrade details (17.77 )

As mentioned at 6:23 UBS upgrades URI to Buy from Neutral and cut their tgt to $26 from $34.50 saying the upgrade reflects the valuation opportunity afforded by the severe decline in the stock price since the termination of URI’s merger agreement with Cerberus, plus the potential for the shares to rise if United Rentals were to once again explore its strategic alternatives. Additionally, the firm believes URI could embark on a renewed cost reduction program, which could add significantly to current earnings power. They also believe the stock price already reflects a recession-type outlook.
07:05 PFCB PF Chang’s issues upside Q4 rev guidance; issues Q4 comparable store sales (22.86 )

Co reports Q4 revs of $292.6 mln vs $286.49 mln First Call consensus. Co reports Q4 Bistro comparable store sales of -1.0% vs -2.6% Briefing.com consensus; reports Q4 Pei Wei comparable store sales of -0.5% vs -0.3% Briefing.com consensus. Co continues to experience rising restaurant operating costs which are anticipated to have a greater impact during Q4 than previously forecast.
07:04 ONCY Oncolytics Biotech announces filing of phase 1/2 clinical trial with REOLYSIN (1.86 )

Co announces that the U.S. National Cancer Institute has filed a protocol with the U.S. Food and Drug Administration for a Phase 1/2 clinical trial for patients with metastatic ovarian, peritoneal or fallopian tube cancers using concurrent systemic and intraperitoneal administration of REOLYSIN, Oncolytics’ proprietary formulation of the human reovirus. The N.C.I is sponsoring the trial under its Clinical Trials Agreement with Oncolytics, while Oncolytics will provide clinical supplies of REOLYSIN.
07:03 AGEN Antigenics reports ‘positive’ data on QS-21 Stimulon Adjuvant in Acambis’ Influenza A Vaccine (2.08 )

Co announces that Acambis has released results from a Phase 1 study of its ACAM-FLU-A vaccine, which contains Antigenics’ QS-21 Stimulon adjuvant. Based on these results, Acambis exercised its option for a commercial license to QS-21. Under the terms of the agreement, AGEN is entitled to receive future milestone payments and product royalties in the event of successful development and commercialization of ACAM-FLU-A.
07:02 NEOG Neogen reports Q2 EPS of $0.22 vs $0.21 First Call consensus; revs $27.21 mln vs $25.81 mln First Call consensus (26.93 )

07:02 WILC G. Willi Food Intl signs agreement to purchase controlling interest in Shamir Salads – an Israeli Mediterranean food manufacturer (6.24 )

Co announced that, further to its announcement on 11/2, it had signed a binding agreement with the owners of Shamir Salads pursuant to which the co is expected to acquire a 51% interest in Shamir Salads. The agreement has been approved by WILC’s Board of Directors, and closing is subject to approval from the Israeli Anti-Trust Authorities. Co expects to consolidate the results of Shamir Salads following approval of the Israeli Anti-Trust Authorities.
07:01 MOGN MGI Pharma and HELSINN announce sNDA for Aloxi capsules accepted for review by U.S. FDA (40.80 )

PDUFA date of August 22, 2008 established.
07:01 ENMD EntreMed announces FDA acceptance of IND application for Aurora Kinase/Angiogenesis Inhibitor, ENMD-2076 (1.20 )

Co announced that the U.S. Food and Drug Administration accepted its Investigational New Drug application for its aurora kinase/angiogenesis inhibitor, ENMD-2076. It is a novel, dual-acting, kinase inhibitor with potent activity against Aurora A and tyrosine kinases linked to promoting cancer and inflammatory diseases and is an oral agent that has shown an acceptable toxicity profile in preclinical studies without cardiovascular effects.
07:01 CBRL CBRL Group reports December comparable store restaurant sales -1.1%, comparable store retail sales +1.0% (31.32 )

CEO says, “Pressures on consumer discretionary spending were more pronounced than expected during this holiday season. In addition, the extreme weather in the Midwest and Northeast adversely impacted traffic. Nevertheless, despite these headwinds, our retail sales remained positive and our guest traffic trends continue to exceed the industry as reported by the Knapp-Track(TM) index.”
07:00 SINA Sina upgraded to to Buy from Neutral at Piper Jaffray (43.10 )

07:00 ECONX MBA Mortgage Applications fall 11.6% for the week ended Dec 28; prior -7.6%

07:00 ISIL Intersil upgraded to Buy from Neutral at UBS (23.60 )

06:59 GHM Graham Corp awarded $3.7 mln U.S. oil refinery order (56.00 )

Co announces that it received in the third quarter of fiscal 2008, which ended December 31, 2007, an order valued at $3.7 mln for an ejector system to be installed in an oil refinery located in the U.S. The co also announced that orders for Q3 were $26.7 million, a 56% increase compared with orders of $17.1 million in the third quarter of fiscal year 2007 and a 30% increase from orders of $20.5 million in the second quarter of fiscal year 2008.
06:59 CNX CONSOL Energy downgraded to Neutral from Buy at Merrill (72.15 )

06:58 OSTK Overstock.com: President/COO resignation a clear negative- Broadpoint Capital (15.10 )

Broadpoint notes OTK announced the resignation of President/ COO Jason Lindsey. The firm says the decision was abrupt and appears to have taken OSTK by surprise. They see this as a key loss to OSTK. Mr. Lindsey has played the role of sounding board and partner to OSTK CEO Patrick Byrne and has been instrumental, in helping Mr. Byrne bring (relative) stability and (relative) financial discipline to the firm after a particularly harsh 2005. The firm says in view of OSTK’s recent decision to restart television advertising, which, in its first iteration was a giant expenditure sinkhole with disproportionately low returns, Mr. Lindsey’s departure occurs at a time when OSTK’s need for self discipline could not be greater.
06:56 MUR Murphy Oil: Downgrade details (85.85 )

As metntioned at 6:37 Bear Stearns downgraded MUR to Peer Perform from Outperform based on valation. The firm says continued oil price strength supports further upside in 2008, though they expect prices to pull back in the near term.
06:54 IM Ingram Micro: Hearing upgraded to buy from neutral at tier 1 firm (17.80 )

06:54 BYI Bally Technologies tgt raised to $59 from $47 at CIBC (49.45 )

CIBC raises their tgt on BYI to $59 from $47 saying they believe the strong 1QFY08 results and increased guidance suggest that the true earnings power of BYI remains to be seen as the domestic slot market improves over the next 12-24 months. Firm says their new forecast reflects strong growth in FY08 and appropriate conservatism in FY09.
06:51 WCG WellCare Group: A settlement and fine is the most likely outcome- CIBC (41.99 )

CIBC says they have obtained five subpoenas for information issued to WCG around the time of the FBI raid by the US Attorney’s Office. Based on these documents, and WCG’s letter to the State of Connecticut, the firm continues to believe the investigation is targeted, and not indicative of widespread fraud. They say the subpoenas were issued to WellCare’s two Florida subsidiaries, the co’s behavioral health subsidiary, the corporate parent, and Comprehensive Health Management. Although the investigation will be drawn out, the firm thinks a settlement and fine is the most likely outcome; if this is the case, they believe the stock will eventually be worth more than its $42 current price.
06:48 SCRX Sciele Pharma: New Sular formulation approved, introduction expected soon- Friedman Billings (19.84 ) -Update-

Friedman notes yesterday evening, SCRX announced that the FDA had approved its new formulation of Sular. The firm anticipates introduction and shipments to wholesalers will be underway within the next several weeks. The firm says there will be no shipments of the previous formulation of Sular in 2008, and are reducing sales ests for the co by $10 mln, the firm also lowers their EPS est for 2008 to $1.90 from $2.05 (consensus is $1.94). Firm says successful execution of the Sular switch will remain a concern for investors and depress the near-term share valuation, but they expect the shares will trade up modestly today in response to the FDA approval.
06:48 CALLS Early Research Calls III

Upgrades: Wachovia upgrades FMC Tech (FTI 57.23) to Market Perform from Underperform. Downgrades: Wachovia downgrades YRC Worldwide (YRCW 15.43) to Underperform from Market Perform… Merrill downgrades Peabody Energy (BTU 62.72) to Neutral from Buy. Miscellaneous: Wachovia initiates Vail Resorts (MTN 52.07) with an Outperform.
06:37 CALLS Early Research Calls II

Upgrades: Credit Suisse upgrades Digital River (DRIV 32.70) to Outperform from Neutral with a $47 tgt saying with reaccelerating year-over-year growth in revenue and EPS through the first half of 2008, combined with relative valuation multiples near or below historical ranges and overly negative investor sentiment (especially related to the Symantec subscription business transfer), they view DRIV’s risk/reward as attractive… Credit Suisse upgrades Infinity Property Casualty (IPCC 36.16) to Outperfrom from Neutral and maintains their $43 tgt based on the recently depressed stock price, the withdrawal of companies and or capital from the non-standard auto insurance market which should ease pricing pressures and competition, and the fact that acquisition is a distinct possibility. Downgrades: Morgan Stanley downgrades StanCorp (SFG 49.75) to Equal Weight from Overweight… RBC downgrades Silver Wheaton (SLW 19.00) to Underperform from Sector Perform… Bear Stearns downgrades Murphy Oil (MUR 85.85) to Peer Perform from Outperform. Miscellaneous: Bear Stearns initiates RealNetworks (RNWK 5.96) with an Outperform… Bear Stearns initiates Napster (NAPS 2.01) with an Underperform.
06:34 WIRES On The Wires

ImmunoGen (IMGN) announces that it has licensed the exclusive right to develop and commercialize a TAP compound to a novel target using an antibody created by Centocor. This license supersedes the previous agreement between the companies… Triangle Capital (TCAP) announces that on Dec 19, 2007, it realized a long term capital gain of approximately $663,000, or approximately $0.10 per share, in connection with the full repayment of its $4.2 mln subordinated debt investment and sale of its warrant position in AirServ Corporation
06:33 PNRA Panera Bread reports Q4 same store sales: Total system +1.7% vs +2.4% street expectation; reports Q4 revs below consensus (34.78 )

Company estimates that its system-wide comparable bakery-cafe sales in the fourth quarter were lower than expected by approximately 1.0% – 1.2% due to extreme weather experienced in its core markets. The impact experienced was similar for Company-owned and franchise-operated bakery-cafes. Co reports Q4 revs of $301 mln vs $307 mln consensus.
06:33 NSTC Ness Tech wins $6 mln advanced geographical data management deal for Prague (9.05 )

Co announces that it was engaged by the Spatial Information Division of Prague Municipality to implement the Digital Map of Prague project, worth $6 mln.
06:30 European stocks add to losses

European stocks dropped on Thursday morning, adding to the previous session’s sharp losses as shares of retailers sank following a profit warning by DSG International and a cautious outlook from Next. But the fall was cushioned by rallying energy shares after oil prices reached the $100 mark for the first time on expectations of a drop in U.S. stockpiles… Around Europe, Germany’s DAX index was down 0.4%, UK’s FTSE 100 index flat and France’s CAC 40 down 0.3%. (Reuters)
06:29 Asian stocks fall with Wall Street as oil prices spike, weak data weighs; Sensex ends down 120pts

Stock markets across Asia fell Thursday, tracking losses on Wall Street overnight after oil pushed through 100 dollars a barrel for the first time ever and weak manufacturing data ignited fears the US economy is slowing at a faster pace than expected. The Philippines, Hong Kong, Taiwan, and Singapore markets led the decline. The Tokyo market remained closed for a holiday and will open Friday for a half day. The Hang Seng closed 2.44% lower at 26,887.28, Taipei’s weighted index ended down 1.7% at 8,184.20 and the Straits Times ended 1.9% lower at 3,397.06. The weak start to the US trading year ignited concern for Asia, with analysts worried that a sharp slowdown, or even worse, a full-blown recession in the US, would weigh on regional markets. The US remains a key market for Asian electronics equipment, clothing and cars. The Shanghai Composite reversed most of its early losses to close up 0.89% at 5,319.86… The Sensex opened on a weak note at 20,404 – down 61 points, but moved up to a high of 20,520 in early noon deals. Selling in scrips like Bharti, ICICI Bank and Grasim saw the index drop to a low of 20,294 in late noon deals. The Sensex finally closed with a loss of 120 points at 20,345. (Thomson, Business Standard)
06:28 Saudi Aramco delays start of 500,000 B/D oil field project- Bloomberg

06:23 CALLS Early Research Calls I

Upgrades: UBS upgrades United Rentals (URI 17.77) to Buy from Neutral. Downgrades: Wachovia downgrades Vertex Pharma (VRTX 23.15) to Underperform from Market Perform, as they believe PROVE trial results so far support either additional Phase II exploration before Phase III commencement and/or large, randomized three-arm Phase III trials evaluating the efficacy of telaprevir in both a 24-week and 48-week treatment regimen, which could push out a potential telaprevir market launch to 2012 (from 2010)… Lehman downgrades OSI Pharma (OSIP 47.14) to Equal-weight from Overweight. Miscellaneous: Calyon initiates Arch Coal (ACI 45.37) with a Neutral and sets a $48 tgt… Calyon initiates Foundation Coal (FCL 53.50) with a Neutral and sets a $56 tgt… Calyon initiates Peabody Energy (BTU 62.72) with an Add and sets a $70 tgt… Citigroup initiates Oshkosh Truck (OSK 46.21) with a Hold… J.P Morgan initiates EnergySolutions (ES 27.36) with a Neutral… J.P Morgan initiates Arena Pharma (ARNA 7.67) with a Neutral… J.P Morgan initiates Vivus (VVUS 5.04) with an Overweight… J.P Morgan assumes coverage of Orexigen (OREX 13.94) with an Overweight.
06:19 STT State Street records net after-tax charge of $279 million, or $0.71/share share, in 4Q07; sees FY07 EPS of $4.54-$4.57 (78.88 )

Co announces that it will record a net charge, after taxes, in the fourth quarter of 2007 of $279 mln, or $0.71 per share. The purpose of the charge is to establish a reserve to address legal exposure and other costs associated with the underperformance of certain active fixed-income strategies managed by State Street Global Advisors. The co also announced that James S. Phalen, currently executive vice president and head of international operations for investment servicing and investment research and trading, is returning to SSgA as interim president and chief executive officer. Co says that FY07 EPS is expected to be between the range of $4.54-$4.57, excluding charges (consensus is $4.19). Both operating EPS and return on equity for 2007 are expected to be above the ranges provided on October 16, 2007.
06:14 S&P futures vs fair value: -0.6. Nasdaq futures vs fair value: -5.5.
06:14 European Markets

FTSE…6398.10…-18.60…-0.3%. DAX…7886.49…-62.63…-0.8%.
06:14 Asian Markets

Nikkei…Holiday……… Hang Seng…26887.28…-673.24…-2.4%.
06:11 NVTL Novatel Wireless expects no significant impact during 2008 to its CDMA customers due to the “sunset” provision that extends through January 2009 (15.28 )

Co announces that it expects no significant impact to its business as a result of the Dec 31, 2007 ruling regarding Broadcom’s (BRCM) U.S. patent infringement suit against Qualcomm (QCOM). Based on a preliminary review of the ruling, the NVTL presently expects no significant impact during 2008 to its CDMA customers due to the “sunset” provision that extends through January 2009. The co expects no impact to its HSDPA customers outside of the U.S. because this ruling applies only to the sale of certain QCOM chipsets in the U.S. Further, the co anticipates minimal, if any, impact to its HSDPA customers in the U.S. as it transitions to Qualcomm’s next generation, non-infringing chipsets over the next few months. “We believe we have sufficient inventory within our supply chain to provide for our customers’ short-term demand, and we expect to migrate to the next generation Qualcomm chipsets well in advance of the court’s January 31, 2009 deadline. The net result is that we currently see no long-term implications for our customers or our business as a result of this ruling.”
06:09 NFLX Netflix and LG Electronics confirm plan to stream movies from Internet to TV (26.35 ) -Update-

Co and LG Electronics confirm they are joining forces to develop a set-top box for consumers to stream movies and other programming from the Internet to HDTVs — bypassing the need to use a personal computer.
06:06 URBN Urban Outfitters reports holiday sales increase 28% (27.39 )

Co announces record sales for the two months ended December 31, 2007. Total sales for the two months increased 28% over the same period last year to $356 mln. Comp store sales for the period at Anthropologie, Free People and Urban Outfitters rose 16%, 17%, and 5%, respectively, for a combined 9% increase versus a combined 5% decrease for the same period last year. Direct-to-consumer sales increased 39% for the period with all three brands posting significant double digit growth. Free People wholesale sales increased 46%. Sales for the calendar month of December grew by 27% while total comp store sales increased 9% versus a combined comp decrease of 5% for the same period last year.
06:03 WIRES On The Wires

Amdocs (DOX) announces that Claro, a mobile provider in Brazil and a wholly owned subsidiary of America Movil (AMX), has deployed Amdocs Partner Settlement Manager to support content partnerships and help grow its value-added services portfolio…Microvision (MVIS), announces that it has entered into a development agreement with one of the world’s leading distributors and manufacturers of diverse consumer electronics products. Under the agreement, the consumer electronics company will be evaluating Microvision’s advanced pico projector prototype displays for use with a variety of mobile devices including phones, laptops and personal media players. For confidentiality reasons, the name of the consumer electronics partner and terms of the agreement were not disclosed.
05:54 SOLF Solarfun Power signs $230 mln wafer supply contract (35.99 )

Co announces the signing of three contracts for sale and delivery of wafers totaling $230 mln over a seven-year period with a major Korean conglomerate.
05:45 MVSN CinemaNow, Macrovision ink tech pact – AP (18.18 )

AP reports privately-held online download site CinemaNow has struck a deal with software maker Macrovision (MVSN) aimed at making it easier for manufacturers of media players and other devices to make their products compatible with CinemaNow’s on-demand movie service. Terms of the agreement, which was being officially announced Thursday, were not made public. The Macrovision deal should eventually lead to many more compatible devices coming to market in the second half of this year, said Curt Marvis, CinemaNow’s chief executive officer. ”This year we’ll see CinemaNow start to become available across a very, very broad spectrum of products,” Marvis said.
05:42 GLYT Philips extends Genlyte takeover offer – Reuters (95.25 )

Reuters reports Philips Electronics (PHG) has extended its $2.7 bln takeover offer for Genlyte Group (GLYT) to January 16, saying not all regulatory approvals have been obtained yet. The co still needed anti-trust approval in a “small number of countries outside of North America,” a spokesman said on Thursday. As of January 2, Philips had received tenders for about 23.7 mln shares, representing about 77% of outstanding Genlyte shares on a fully diluted basis, the co said. Philips’ offer, at $95.50 per Genlyte share, is conditional on at least 50% of outstanding shares being tendered.
05:40 MRK Merck in $700 mln schizophrenia deal – Reuters (57.37 )

Reuters reports Swiss biotech company Addex Pharmaceuticals said it could receive more than $700 mln from Merck (MRK) for a licensing deal on its ADX63365 drug to treat schizophrenia, lifting its shares. Addex will receive $22 mln up front from Merck for the schizophrenia deal — which also covers other undisclosed indications — and is eligible for up to $680 mln in milestone payments, it said on Thursday. Addex also said its lead compound ADX10059 had failed to meet its main target in a mid-stage clinical trial in acute anxiety. Addex shares rose 6.5% to 42 Swiss francs by 4:12 A.M. EST as the boost from the Merck deal outweighed the impact of the clinical trial failure, analysts said. Addex could receive up to $455 mln in milestones for the first product developed in two indications, plus a further $225 mln for any second product.
05:33 OPEC may raise output at Feb 1 meeting: Indonesia OPEC governor – Reuters

Reuters reports OPEC may decide to increase oil output at its February 1 meeting in Vienna if supply is not sufficient, Indonesia’s OPEC governor told Reuters on Thursday. Maizar Rahman said that OPEC has the capability to increase production by 500,000 barrels per day, and warned that oil prices could climb even higher. “There is a possibility the oil price can head to the $100-$110 level,” he said.
05:31 NFLX Netflix partners with LG to bring movies straight to TV – NY Times (26.35 )

The NY Times reports Netflix (NFLX) wants to strike deals with electronics companies that will let it send movies straight to TV screens over the Internet. Its first partnership, announced Wednesday night, is with LG Electronics to stream movies and other programming to LG’s HD televisions. The partnership will extend a novel feature from Netflix, announced a year ago, that allows paying subscribers to watch any of 6,000 movies and television shows on its Web site free. Reed Hastings, chief executive of Netflix, said he hoped to strike other such deals and that Netflix would soon be viewed as a movie channel that might appear on myriad devices. “We want to be integrated on every Internet-connected device, game system, high-definition DVD player and dedicated Internet set-top box,” he said. “Eventually, as TVs have wireless connectivity built into them, we’ll integrate right into the television.”
05:28 China’s slower profit train could derail a stock boom – WSJ

The Wall Street Journal reports the Chinese stock market is facing several hurdles, including slowing earnings growth in important sectors, high valuation and weak recent performance. Profits will almost surely remain relatively robust this year, as the economy continues to grow 10% a year, but that rate is likely to slow. And while earnings are still expected to rise more than 20% this year, earnings growth at financial and energy companies likely will slow even more. We think the global slowdown [in 2008] will show up in China’s growth and corporate profits,” said Gene Ma, president of China Economic & Business Monitor Group in Beijing. Perhaps a quarter of industrial sales in China, from power to chemicals, depend on exports, and “there are some head winds for China’s banks,” he said. The problem is that continued torrid profit growth is already baked into market expectations. The p/e ratios for Shanghai-listed stocks finished 2007 at 59x the previous year’s earnings, albeit down from 71x at the market’s peak in October, according to exchange data. At valuations like that, the smallest reversal in earnings can send stocks tumbling, though China’s markets have traded at much higher P/Es than would be sustained in the stock markets of more market-oriented economies. If weaker earnings growth begets a weaker stock market, then the weak stock market might cause earnings to weaken further. That is because many Chinese companies get a chunk of their profits from gains in the stock market.
05:20 Morning News Summary: NFLX – MRK – PHG/GLYT – MVSN

WSJ: China’s slower profit train could derail a stock boom. NY Times: Netflix (NFLX) partners with LG to bring movies straight to TV. Reuters: OPEC may raise output at Feb 1 meeting: Indonesia OPEC governor… Merck (MRK) in $700 mln schizophrenia deal… Philips (PHG) extends Genlyte (GLYT) takeover offer. AP: CinemaNow, Macrovision (MVSN) ink tech pact.
03:54 SCRX Sciele Pharma announces FDA approval of Sular formulation (19.84 )

Co and SkyePharma plc announce that the FDA has approved all four dosage strengths of the new Sula formulation, a calcium channel blocking agent for the treatment of high blood pressure. The expected launch for the new Sular formulation is during Q108.
02:11 CRXL Crucell N.V. enters agreement with Sanofi Pasteur for biologicals against rabies (16.71 )

Co announces that it has signed an exclusive collaboration and commercialization agreement with Sanofi Pasteur, the vaccines division of Sanofi-Aventis (SNY), for Crucell’s rabies monoclonal antibodies, the next-generation rabies biologicals to be used in association with rabies vaccine for post-exposure prophylaxis against this disease. Under the terms of the agreement, Crucell will continue to perform the development activities. Crucell will be responsible for the manufacturing of the final product and will retain exclusive distribution rights in Europe, co-exclusive distribution rights in China and the rights to sell to supranational organizations such as UNICEF. Crucell will receive a payment of EUR 10 mln following the execution of the agreement, will be eligible for milestone payments of up to EUR 66.5 mln and will receive an undisclosed percentage on sales of the final product by sanofi pasteur.
02:08 WIRES On The Wires -Update-

Oncolytics Biotech (ONCY) announces that the U.S. National Cancer Institute has filed a protocol with the FDA for a Phase 1/2 clinical trial for patients with metastatic ovarian, peritoneal or fallopian tube cancers using concurrent systemic and intraperitoneal administration of REOLYSIN, Oncolytics’ proprietary formulation of the human reovirus.
01:24 WIRES On The Wires -Update-

Qimonda AG (QI) announces that it has signed an agreement with Macronix International on a joint development of non-volatile memory technologies; financial terms weren’t disclosed… UTEK (UTK) and MachineTalker (OTCBB:MTKN), a co that develops smart security networks, announce that MachineTalker has acquired Micro Wireless Technologies, a wholly-owned subsidiary of UTEK, in a stock transaction.
00:27 KR Kroger mentioned positively in Weekday Trader – Barron’s Online (25.67 )

Barron’s reports shares of Kroger (KR) are undervalued after falling 20% since June on margin pressures in its gasoline business. In December, the co’s food business posted its 10th straight quarter of 3%-plus identical-store sales increases. For Q3, identical sales, excluding fuel, grew 5.7%. James Gibson, chief investment officer of Valley Forge Asset Management, says he likes grocery stores as a “hedge against rising food costs.” “In a food-inflation environment these companies offer some pricing-power protection against that phenomenon,” he says. Gibson calls Kroger the industry’s “premier operator,” and notes its strong management, impressive free cash flow and recently implemented dividend. By 2010, Deborah Weinswig of Citigroup estimates Kroger will have 15% of the market, compared with 10% and 9% for Safeway (SWY) and Supervalu (SVU), respectively. Currently, shares are trading at a relative discount. Kroger trades at 13.9x estimated EPS for the next four quarters compared with a 15.4 multiple for Safeway, according to Thomson Financial data. Meredith Adler of Lehman Bros. maintains that, volatility aside, fuel remains a net positive for Kroger, by driving traffic into its stores. Additionally, on a year-to-year basis, those fuel margins are still relatively stable, Adler says. And as gas prices stay high, the convenience of its full-service neighborhood locations could give Kroger an edge over more distant, big-box competitors.
00:25 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Allegheny Technologies (ATI), Thomson (TOC), SanDisk (SNDK), ev3 (EVVV), Pitney Bowes (PBI) and Wells Fargo (WFC).
00:24 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Raytheon (RTN), Citigroup (C), St. Jude Medical (STJ), CR Bard (BCR), Becton Dickinson (BDX), Banco Santander (STD), Onyx (ONXX) and ITT (ITT).
00:23 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Wednesday’s edition, Jim names his favorite stocks for 2008. He favors Altria (MO), Halliburton (HAL), Amazon (AMZN), Research in Motion (RIMM), Apple (AAPL), Google (GOOG), NYSE Euronext (NYX), BioMarin (BMRN), Level 3 Communications (LVLT), Yamana (AUY) and Savient Pharma (SVNT). During the “Sudden Death” round, Cramer was bullish on Consol Energy (CNX), Freeport McMoRan (FCX), Yamana Gold (AUY) and Barrick Gold (ABX).
00:20 WIRES On The Wires

The Monster Employment Index (MNST) fell 14 points in December, reflecting a seasonal slowdown in recruitment that is typical during the final month of the year as well as further moderation in the job market… Harrah’s Entertainment (HET) announces it has extended the existing employment agreement with Gary Loveman, co chairman, chief executive officer and president… Bharti Airtel, an Indian telecommunications service provider, announces that it has signed a Memorandum of Understanding with VeriSign (VRSN); the companies agreed to form a strategic market partnership to jointly launch security services, to deliver VeriSign’s identity protection, managed security and fraud detection services, and to support the development of Internet infrastructure in the Indian market… Fisher Communications (FSCI) announces that it has closed on the purchase of the assets of KBAK-TV and KBFX-CA from Westwind Communications, LLC for $55 mln in cash.
00:18 ALLT Allot acquires Esphion for network and subscriber protection solutions (4.81 )

Co announces that it has signed a definitive agreement to acquire the business of Esphion Ltd, a developer of network protection solutions for carriers and internet service providers. Under the terms of the agreement, Allot will acquire all material assets of Esphion for $3.5 mln in cash plus up to an additional $2 mln of performance-based consideration if certain targets are met during 2008. operation. Allot anticipates that on a non-GAAP basis, the acquisition will be around $0.02 dilutive to EPS from continuing operations in Q1 following the closing of the transaction, and will become accretive to EPS within one year of closing.