Data Feed

08:47 CPST Capstone Turbine announces $4.0 mln order from BPC Energy Systems (1.70 )

CPST announced earlier today that it has received an order for approximately $4.0 mln from BPC Energy Systems in Moscow, Russia for its new 200kW microturbine product. In addition, CPST announced that with this order it has effectively “sold out” of its planned initial calendar year 2008 production. The new 200kW offering was launched in September 2007 and the C1000 product family was released at the Power-Gen International trade show in New Orleans in December 2007.
08:46 BIIB sees Y07 GAAP and non-GAAP EPS to be above the top end of previous guidance range

08:46 WIRES On The Wires

LIN TV (TVL) and EchoStar Communications (DISH) announces that viewers in TVL’s markets where a LIN TV station is unavailable on cable will receive a $50 prepaid MasterCard (MA) via mail when they sign up for the DISH Network service… CommVault (CVLT) and Incentra Solutions announce an extension to their existing managed services agreement… Mindray Medical International (MR) announces updates on new product launches and its product pipeline for domestic and international markets… Pipex Pharmaceuticals (PP) announces that it has initiated a 150-patient, double-blind, placebo-controlled Phase II clinical trial of its lead anti-copper drug candidate, COPREXA for the treatment of Alzheimer’s disease.
08:46 AMMD American Medical reports Q4 revs above consensus (13.78 ) -Update-

Co reports Q4 preliminary revs up 12.7% yr/yr to $130.0 mln vs $124.9 mln consensus. CEO says, “Overall, we are pleased by our top-line results for the fourth quarter. While the laser therapy business continues to be challenging to predict, our base business grew 15.8 percent driven by strong performance in many of our key product lines.”
08:45 GBT Advanced Battery Announces $23.4 Million Contract With Wuxi Angell Autocycle

…
08:45 CBST Cubist Pharma reports FY07 total revs above consensus (20.16 )

Co issues upside guidance for FY07 (Dec), sees FY07 (Dec) revs of $294.6 mln vs. $292.52 mln First Call consensus. Co also reported Q4 reported U.S. net product revenues of $83.9 mln.
08:44 C Citigroup mulls cutting work force by 5 to 10 percent, CNBC says – Reuters (28.24 )

Reuters reports the bank is considering cutting 5-10% of its work force, which totals 327,000, CNBC television reported on Monday, without citing sources. CNBC said a Citigroup announcement was likely to come later this month when the largest U.S. bank reports quarterly earnings. It also said the bank could sell off a smaller unit.
08:44 AMMD sees Q4 revs of $130.0 mln vs $124.9 mln consensus

08:42 LIZ Liz Claiborne: Private equity group said close to buying Ellen Tracy from Liz – WWD (18.22 )

WWD reports the co is said to be close to a deal to sell the Ellen Tracy brand to a consortium led by Windsong Brands. A source familiar with the talks said a deal is “close” to completion. Another financial source used the term “imminent” to describe the pending transaction. A source close to the talks said Windsong is coleading the consortium with the Radius Group, but declined to provide more information. Other investors in the consortium are a private investment group led by Barry Sternlicht and American Capital Strategies. The sources said the parties are in the latter stages of due diligence. It is believed the investment group and the apparel giant already have agreed on price, but the dollar figure could not be learned by press time.
08:40 SNMX Senomyx: New collaboration partner further validates technology, new flavor category provides additional opportunity – Needham (6.39 )

Needham notes SNMX announced a new development program with Ferminich, a privately held Swiss co that is among the world’s largest flavor and fragrance cos, to develop flavor enhancers in the new flavor category of “cool”. Cool is a secondary taste sensation that is typically added to food, confectionary and pharmaceutical products using and additive like menthol. Firm believes the addition of a new partner is further validation of SNMX technology and value added and the new flavor category expands the co’s rev opportunities.
08:40 PGIC Progressive Gaming upgraded to Buy at ThinkEquity- tgt cut to $3 (2.28 )

ThinkEquity upgrades PGIC to Buy from Accumulate and cuts their tgt to $3 from $5 saying 2007 was a difficult year for PGIC stock. The shares plummeted 73% as the co suffered from a troubled balance sheet, legal issues, missed expectations, and regulatory approval delays. The firm says however PGIC continued to grow core system installations, formed strategic partnerships, settled a legacy lawsuit, and raised funds to materially improve its capital structure. Entering 2008, the firm says PGIC appears poised to capitalize on its strong technology and more-stable balance sheet. They believe execution risks remain and that the balance sheet still needs work; but, are upgrading the shares.
08:39 RTP Rio Tinto considers bid for Xemplar Energy, Sunday Express says – Bloomberg.com (406.80 ) -Update-

Bloomberg.com reports the co may make a bid for Xemplar Energy, a Canadian uranium explorer, the U.K.’s Sunday Express reported, without citing anyone. Rio is watching Xemplar “carefully,” the London-based newspaper said. Xemplar has found a site in Namibia that may contain more uranium that Rio’s existing Namibian mine, the newspaper said. Rio is waiting for independent verification of the find before deciding on a bid, the Express said.
08:38 SHOR Shoretel issues Q2 downside rev guidance (13.08 )

Co sees Q2 revs of $29.7-30.7 mln, compared to previous guidance of $32-35 mln, vs $34.07 mln consensus. Co sees gross margins within the previously guided range of 62-64%. CEO says, “Despite delivering the second highest revenue quarter in the Company’s history, we fell short of our expectations. Our preliminary review indicates that sales to existing customers grew during the quarter, however, sales to new customers declined. We are still in the process of analyzing the factors affecting our results for the quarter and will discuss the results further when we hold our regularly scheduled earnings conference call at the end of January.”
08:38 TDS Telephone & Data and USM update 2007 guidance (61.78 )

U.S. Cellular (USM) 2007 guidance as of Jan. 7, 2008 is as follows: Net retail customer additions 325,000 – 340,000 Service revenues $3.6 – $3.7 bln Operating income $385 – $435 mln Depreciation, amortization & accretion Approx. $600 mln Capital expenditures Approx. $600 mln TDS Telecom 2007 guidance has not changed: Operating revenues $850 – $880 mln Operating income $130 – $150 mln Depreciation, amortization & accretion Approx. $155 mln Capital expenditures $120 – $140 mln.
08:38 ESLR Evergreen Solar tgt raised to $30 from $20 at ThinkEquity (16.76 )

ThinkEquity raises their tgt on ESLR to $30 from $20 saying they read Evergreen’s 10-year polysilicon supply contract with Silpro as a sign of confidence in deploying Evergreen’s Quad Ribbon technology, suggesting that the production ramp is likely to unfold as planned. They believe that with lower risks and a clearer growth outlook, ESLR shares should appreciate significantly.
08:36 CS Credit Suisse will have additional writedowns, Sonntag reports – Bloomberg.com (58.62 )

Bloomberg.com reports the co expects additional writedowns of 2.5 bln Swiss francs ($2.3 bln) for the fourth quarter of 2007, Sonntag reported without saying where it got the information. This sum would be in addition to writedowns of a similar amount already announced, the Swiss weekly newspaper said in today’s edition. Switzerland’s second-biggest bank took chances in financing U.S. shopping centers and gave consent to highly leveraged co takeovers, Sonntag reported, adding that the liquidity crisis at one of the bank’s U.S. money market funds is not over. If the U.S. goes into a recession, Credit Suisse may have further writedowns of up to 5 billion francs, the newspaper said.
08:36 VRUS Pharmasset announces R7128 achieves 85% rapid virologic response in a 4-week combination study for the treatment of Chronic Hepatitis C; call scheduled for 4 ET today (13.99 )

Co announces the preliminary results of a 4-week Phase 1 clinical trial to evaluate two oral dose levels of R7128 in combination with Pegasys plus Copegus (ribavirin) in 50 treatment-naive patients chronically infected with hepatitis C virus genotype 1. In this study, R7128 demonstrated potent short-term antiviral activity and was generally safe and well-tolerated. Eighty-five (85%) of patients receiving R7128 1500mg and Pegasys plus Copegus achieved undetectable H.C.V R.N.A. levels following 4 weeks of treatment with safety and tolerability comparable to placebo. R7128 is a prodrug of PSI-6130, a cytidine nucleoside analogue polymerase inhibitor of H.C.V. that is being developed through VRUS’s collaboration with Roche. Co states, “…This study also suggests that there appear to be certain synergies between nucleoside polymerase inhibitors and the standard of care that is not found with other classes of HCV inhibitors. The addition of R7128 at both dose levels to the current standard of care has demonstrated a greater percentage of RVR compared to the standard of care alone, which could translate into improved clinical outcomes with longer treatment periods. In addition, the level of antiviral activity from 500mg to 1500mg provides flexibility in selecting doses for future clinical studies.” Preliminary safety and tolerability reported were similar for R7128 500mg or R7128 1500mg in combination with Pegasys plus Copegus compared to standard of care alone. There were no serious adverse events reported during the 4 week treatment period. The most common adverse events reported across the treatment groups were headache, chills, fatigue, nausea and fever. Pharmasset will host a conference call at 4 ET on January 7, 2008 to discuss the R7128 Phase 1 preliminary safety and antiviral activity combination results.
08:36 CRAI CRA Intl: Stifel previews 4Q07 (47.20 )

Stifel believes that CRAI could meet or exceed their 4Q07 (Nov) EPS est of $0.74 when it reports results on Jan 10, 2008, before the market open. Firm believes, there is potential for upside due to strong demand for the co’s services and margin expansion, fueled in part by better utilization metrics. The consensus est is $0.75. Despite continued strength last quarter, firm believes the litigation practice remains an area with upside, as thjey expect a continued increase in demand for consulting services associated with the credit-market fallout. The aforementioned investments, planned before the fallout gained momentum, could lead to significant incremental revenue, in firm’s view. Firm currently ests 2007 EPS of $2.54 and 2008 EPS of $3.25 vs consensus ests of $2.54 and $3.09,
08:35 SCANX Early pre-market gappers

Gapping up: FEED +9.0%, PCBK +7.5%, CNET +6.8%, SEED +6.8%, SPWR +3.1%, CMCSA +3.0%, FSLR +2.6%, LOGI +2.6%, HMA +2.6%, JCOM +2.5%, SPSS +2.3%, HOC +2.3%, ESLR +2.3%, SHFL +2.2%, SBUX +2.2%, ALTH +2.1%, CELG +2.1%, DLR +1.9%, ALXN +1.8%, CELL +1.8%, MR +1.6%, NOK +1.4%, MRVC +1.4%, DTV +1.4%, ALNY +1.4%, AVCT +1.3%, AAPL +1.3%, JASO +1.3%, LDK +1.3%, SONC +1.3%, FWRD +1.2%, BT +1.2%, FRED +1.1%, RNOW +1.1%, MU +1.1%, CYBS +1.0%… Gapping down: JEF -8.0%, ZUMZ -4.5%, QBAK -3.7%, ELN -3.2%, CRM -3.2%, TIBX -3.1%, MF -3.1%, PTEC -2.6%, NTAP -2.3%, BBY -2.1%, EMS -1.6%, AACC -1.3%, DRI -1.2%, PHG -1.2%, SONO -1.1%.
08:35 GHDX Genomic Health announces collaboration with Pfizer to develop prognostic test for non-metastatic renal cell carcinoma (21.43 )

Co announces a collaboration with Pfizer (PFE) on the development of a genomic test to estimate the risk of recurrence following surgery for patients with Stage I-III renal carcinoma, clear cell type, that has not spread to other parts of the body. The clear cell type of renal carcinoma is the most common type of kidney cancer in adults, affecting an estimated 25,000 people each year in the United States. As part of the collaboration, the cos will apply the same molecular technology and clinical strategy Genomic Health used to develop its Oncotype DX breast cancer test.
08:34 GM General Motors’ Wagoner expects 75% of sales from outside U.S. – Bloomberg (23.65 )

Bloomberg reports the co will probably get 75% of car and truck sales from outside the U.S. within a decade, Chief Executive Officer Rick Wagoner said. The automaker plans to push sales in the fastest-growing mkts as demand in the U.S. stagnates, Wagoner said in a Jan. 4 Bloomberg Television interview. In the third quarter of last year, 58% of GM’s sales came from outside its home market.
08:33 SHOR lowers Q1 guidance, sees revs $29.7-30.7 mln vs $34.07 mln First Call consensus

08:33 CALD Callidus Software sees Q4 revs below two analyst estimate (4.57 )

Co sees Q4 revs of $24.2-25.0 mln vs $29.5 mln two analyst estimate. Co sees license revs of approx $6.7 mln, with maintenance and service revs of $17.5-18.3 mln. Co sees the net new Annual Contract Value new Annual Contract Value (ACV) of on-demand bookings in Q4 to be $6.5 mln. CEO says, “We are announcing preliminary financial results today which reflect a record level of on-demand sales activity but a disappointing level of perpetual license revenues. While there was a good level of overall activity in the business, it was skewed towards on-demand as perpetual license sales were lower than expected.”
08:32 CNLG Conolog announces record orders of $193,000 for the month of Dec 2007 (1.14 )

Co announces that for the month of Dec 2007, the co received a total of $193,000 in additional orders for 46 systems, increasing its previously announced three- year backlog of $4.5 mln. Dec 2007 represented Conolog’s highest single month of orders since introducing its new products. “We are gratified by the market acceptance of our designs and welcome all the new customers that have placed orders to-date. We estimate to book $2 mln in total orders in calendar 2008.” Benou added, “The co will continue to expand its marketing efforts and is focused on expanding product applications, related software and production capacity throughout 2008.”
08:32 AMMD American Medical announces resignation of Chief Executive Officer (13.78 )

Co announces its Board of Directors has accepted the mutually agreed upon resignation of Martin J. Emerson as President, Chief Executive Officer and Board Member effective January 4, 2008. The Board of Directors has begun a search for a new Chief Executive Officer and has retained Heidrick & Struggles to assist in its recruiting effort. Ross A. Longhini, Executive Vice President and Chief Operating Officer, will serve as Chief Executive Officer on an interim basis.
08:32 TIVO TiVo allows customers to easily download internet video automatically to their television sets (7.39 )

Co announces TiVo subscribers will soon be able to easily watch an enormous variety of video content from the web directly on their television sets by applying TiVo’s popular Season Pass functionality to web video. With the proliferation of content available online today, consumers have access to thousands of hours of content from well-known networks to special interest videos, but need an easy way to search, discover, and enjoy this entertainment on the TV set.
08:31 MEA Metalico to acquire facilities in Texas, Mississippi for $23.7 mln (9.35 )

Co announces that it has entered into separate agreements to purchase substantially all of the operating assets of two affiliated catalytic converter recyclers located in Texas and Mississippi. The Texas and Mississippi companies are to generate approx $122.5 mln in revs (unaudited) in FY07. The aggregate purchase price for the two acquisitions is approximately $23.7 mln. Each transaction is subject to the satisfaction of customary conditions but is expected to close in the first quarter of 2008.
08:31 ENTU Entrust guides in-line for Q4 (1.77 )

Co issues in-line guidance for Q4 (Dec), sees EPS of $0.04, excluding non-recurring items, vs. $0.04 First Call consensus; sees Q4 (Dec) revs of $26.7 mln vs. $26.07 mln consensus. “As we enter 2008, we are well positioned to grow our products and services businesses, increase our profitability and deliver shareholder value.”
08:31 ELS Equity Lifestyle Properties names Joe McAdams new President (42.60 )

08:30 CALD sees Q4 revs of $24.2-25.0 mln vs $29.5 mln two analyst estimate

08:30 UQM UQM Technologies receives production order for auxiliary motor to be used on golf carts manufactured by Club Car (3.22 )

Co announces that it has received a production order from a supplier to Club Car, a wholly-owned subsidiary of Ingersoll-Rand Company Limited, for an auxiliary motor that will be used on Club Car golf carts beginning later this year.
08:30 YHOO Yahoo moves to counter Google mobiles push – FT (23.16 )

FT reports the co moved to counter Google’s (GOOG) push onto mobile handsets, unveiling a development platform of its own for creators of mobile internet applications. News of the plan, which was announced at the annual Consumer Electronics Show, comes two months after Google took the wraps off its Android mobile software, along with an alliance of handset makers who planned to use the technology. While that plan amounts to a full software “stack” to power mobile handsets, however, Yahoo’s technology addresses a narrower need, and is aimed at developers and publishers who want their applications to run on many different handsets.
08:30 AXYS Axsys Technologies: Stifel strongly reiterates buy on weakness and confirmation of CROWS contract (34.80 )

Stifel strongly reiterates their Buy rating and $40 tgt and suggests starting or adding to positions in AXYS shares on recent market weakness and expectations for the Pentagon’s continued spending focus on C4ISR upgrades, replacements and additions. Furthermore, news that a large Axsys opportunity is past the protest phase sets the stage for continued financial and operational outperformance and, as they learn more, the likelihood of further sales growth, margin expansion, estimate increases and a boost to their target price. In firm’s view, CROWS is one of the larger (if not largest) near-term new opportunities with total potential revenue to Axsys of over $80 million for thermal optics for 6,400 units.
08:29 Asian markets summary — most regions closed lower following Friday’s weakness in the U.S. on economic concerns

The MSCI Asia-Pacific Index closed -2.2% as a slowdown in U.S. hiring reinforced concern the world’s biggest economy will sink into recession… In Japan, the Nikkei closed -1.3%, hitting a new 17-mo low… In Hong Kong, the Hang Seng closed -1.3%, while in mainland China, the Shanghai Composite closed +0.6%… In Taiwan, the Taiex closed -4.1%. In economic news, the country’s exports in Dec grew 19.8% yr/yr to a record high of $23.48 bln, compared with an 11.8% rise to $21.85 bln posted in Nov. Blue-chips were led lower by exporters Taiwan Semiconductor (ADR: TSM), which fell 7.0%… In India, the Sensex closed +0.6%.
08:29 S&P futures vs fair value: +9.8. Nasdaq futures vs fair value: +9.3.

Early indications continue to point to a higher start. Oil is down 0.1% to $97.76 per barrel, after topping $100 for the first time last week. There were a few brokerage rating changes of note this morning. IBM (IBM) is modestly lower in pre-market trading after being downgraded to Neutral from Buy at UBS. Best Buy (BBY) is poised for a lower start after being downgraded to Underperform from Outperform at Bear Stearns.
08:29 Spectre of US slowdown haunts tech fair – FT

FT reports the prospect of a consumer spending slowdown in the important US mkt clouded the upbeat mood Sunday at the start of the global consumer electronics industry’s biggest annual jamboree in Las Vegas. At the same time, sharply falling prices for some consumer gadgets this year, and slow development of the digital services needed to stimulate demand for more devices, are forecast to cause parts of the US mkt to shrink compared with 2007. Growth in consumer tech spending this year is likely to dip to 6%, according to an estimate from the Consumer Electronics Association. That is barely half the 11% recorded in 2007 and 13% the year before, although the trade body’s estimates have proved overly conservative in recent years.
08:28 STJ St. Jude Medical upgraded to Outperform from Market Perform at BMO Capital (38.95 )

08:27 BCR C.R. Bard upgraded to Outperform from Market Perform at BMO Capital (90.70 )

08:27 DAL Delta Air Lines delays Comair sale as it explores merger hopes – FT (13.37 )

FT reports the co has put on hold plans to sell its Comair regional jet service division while it explores a possible merger with United Airlines (UAUA) or another rival, the latest sign that 2008 could be the year US carriers press for consolidation. The airline has had preliminary discussions with JPMorgan Chase on its options for the unit. It will not retain JPMorgan until a special committee of Delta directors and their bankers – Merrill Lynch and Greenhill – has completed the merger review, people familiar with the co’s plans said. In postponing a decision on Comair, Delta may be following through with its stated plans to participate in the industry’s expected consolidation. A tie-up with United or Northwest Airlines (NWA) could be the spark that touches off a wave of deals among the nation’s six legacy carriers – those that existed prior to deregulation in 1978 – as each seeks to expand its global reach, slash expenses and eliminate less profitable routes.
08:26 BONDX Bond Watch: Logging Lower

The market is leaking some of the air pumped into prices last week as trade searches for a catalyst. The flight-to-quality has evaporated somewhat as global equities found buyers & the recent runup to fresh trend price highs in bonds gets checked for being a little too aggressive. The 2-10-yr yield spread has flattened to 112.1 as the short-end flight gets unwound a little. Bond prices in the EuroZone were held lower as sentiment soured toward the overbought sovereigns ahead of an ECB meeting on Thurs while in Japan, bonds clawed higher in mostly a catch-up bid to the reaction from Fri’s US payrolls data. Apart from some Fed talk later in the session, Treasuries have nothing to work with today. The leap higher on Fri evidently has run its course & prices look a little vulnerable with no new catalysts to fuel bids. The dollar is reversing to the weak side after finding some buyers overnight knocking out euro bids below 1.4690 down through 1.4650 where the move stalled. It has since retraced above 1.4700. Gold has been boosted 864.25 (+4.65) as inflation worries hold, while crude is off some as winter weather proves mild, 97.64 (-0.27). The day is data free & Fed-speak offers just Atl’s Lockhart speaking about 12:30. The euro is at 1.4730 & the yen is at 109.0300 while the 10-yr is -06/32 yielding 3.890%.
08:26 VLCM Volcom: Expect Q4 miss; lowering Q4 and 2008 EPS ests – Caris (19.34 )

Caris says keeps their Average given their belief that Q4 guidance is at risk and 2008 EPS ests may prove too aggressive. They believe consumer spending has pulled back in the past several months and more promotions have been used to help keep inventory levels in check. Firm is lowering their Q4 EPS estimate to $0.28 from $0.31 and full year 2008 EPS to $1.55 from $1.66 to reflect their tempered outlook. Firm’s new tgt of $20 reflects 13x forward est. Firm cus their Q4 and full year 2008 rev and EPS ests given their belief that consumer spending weakened materially in the past 1-2 months and that promotional activity has increased in order to maintain clean inventory levels. Firm is lowering their Q4 revenue assumption to $67 mln from their prior estimate of $72 mlnand EPS estimate to $0.28 from $0.31.
08:25 ETFC E*TRADE target cut to $2.75; tgts also cut for select asset managers (3.23 ) -Update-

Citigroup cuts their tgt on ETFC to $2.75 from $4.50 and reits their Sell, as they estimate that ETFC has lost about $30 bln of client assets (15% of total) in just over 2 months, and they believe the attrition will continue. Furthermore, firm believes that the co is marketing high yielding deposits attracting “hot money”, which they think is uneconomical and unsustainable. Firm expects the strongest core brokerage trends at SCHW and AMTD, and expects the strongest core asset manager trends at BLK and FII… Firm also cuts their tgts on LM to $95 from $108, FIG to $19 from $24, and BX to $33 from $36.
08:25 STT State Street: Testing investors’ faith in State Street – NY Times (81.82 )

NY Times reports forced over the last five months to face icky truths about the credit crisis, investors seem to believe we are near the end of a disturbing interlude. How else to explain the 8.2% rally last Thursday in shares of the co after it said it would seek fresh capital and add $618 mln in reserves to cover lawsuits over subprime mortgage investments it made for some clients? It’s not a positive sign that State Street is adding the reserves to settle lawsuits contending that it breached its fiduciary duties to clients for whom it bought subprime securities. Nevertheless, now seems a peculiar time for shareholders to suspend their disbelief about the full impact the continuing credit crisis might have on financial services stocks, even models of New England rectitude like State Street. Investors seem inordinately sure of the solidity of four off-balance-sheet entities that issue commercial paper and are backed by State Street… these conduits are similar in design to the vehicles Citigroup and other financial institutions have had to bring back onto their balance sheets when the assets in them deteriorated.
08:23 WIRES On The Wires

CSC (CSC) announces $370 mln in previously unannounced commercial contracts… Allos Therapeutics (ALTH) initiates phase 2b study of PDX in patients with non-small cell lung cancer… White Mountains (WTM) acquires Helicon Re Holdings for $150 mln.
08:22 Calyon says CPA & RJET are their top two top airline picks in a limited field going into 2008

Calyon says their top two top airline picks in a limited field going into 2008 are Republic Airways Holdings (RJET) and Copa Holdings (CPA). They believe RJET and CPA are attractive at current price levels because of strong projected growth. On a macro basis, their main worry for the airline industry is high fuel prices and economic-related demand for travel. In the case of RJET, its fixed contracts generally protect it in an economic downturn while Copa’s main operating area for the time being appears to remain strong economically. They think current depressed stock prices already reflect these risks.
08:22 IDTI Integrated Device: Caris reduces FY09 est; tgt cut to $11 (10.28 )

Caris reduces ests as FY09 expectations appear too aggressive. Based upon their checks, continued softness within the communications segment is likely to offset stong computing results for DecQ bringing revs below the mid-point of previously stated guidance. Furthermore, they anticipate that the communications segment could remain lackluster into early 2008 leaving IDTI unable to offset normal seasonal patterns within computing and consumer. Firm therefore looks for expectations to be reset coming out of FQ3 earnings and are proactively cutting our FY09 EPS est from $1.00 to $0.90, and reducing their tgt from $13.00 to $11.00.
08:22 OVTI OmniVision downgraded to Hold at Needham (13.72 )

Needham downgrades OVTI to Hold from Buy saying with evidence of deteriorating business conditions, including a slowdown in order rates due to previous overbooking in China, increasing pricing pressure and the potential for increased competition from DRAM suppliers Samsung, Micron and Hynix, they are meaningfully reducing their earnings estimates for OVTI and downgrading the shares.
08:22 WIRES On The Wires -Update-

Delphi (DPHIQ) and WORLDSPACE (WRSP) announces the two companies have an agreement in which Delphi will design the first WORLDSPACE satellite radio mobile receiver for the European aftermarket based on a WORLDSPACE-developed reference design… Chelsea Therapeutics International (CHTP) announces that last month it initiated a Phase II trial of Droxidopa, an orally active synthetic precursor of norepinephrine, in patients with intradialytic hypotension… Alsius (ALUS) was awarded a contract by Mid-Atlantic Group Network of Shared Services to distribute ALUSs’ temperature management systems through MAGNET’s network of 775 acute care hospitals throughout the New England, Mid-Atlantic and Midwest regions of the United States… Tyler Technologies (TYL) announces that it has signed a contract to provide its iasWorld property tax software to the State of Tennessee. The contract is valued at approx $15.1 mln… BioSante Pharmaceuticals(BPAX) announces that it has initiated its Phase III safety study of LibiGel. This study design is a result of an agreement with the FDA on key FDA requirements for the development and approval of LibiGel in the treatment of female sexual dysfunction, specifically, hypoactive sexual desire disorder.
08:21 CRL Charles River CEO appears on CNBC; says they haven’t had this kind of demand in years and as companies reduce costs, CRL helps them get the drugs to market sooner (65.07 )

When asked about CRL’s stock performance, says they think demand will continue in an “unrelenting way” for several years. When asked about his option/stock sales, notes he has a sales plan in place.
08:20 SMSI Smith Micro Software: Morgan Joseph Expects expanding customer list and product portfolio; could be best performer in ‘08 (7.69 )

Morgan Joseph believes that SMSI’s business is transforming for the better as both its customer list and its product portfolio grow. The changes should bode well in the manifestation of both improved consistency and predictability of sales and earnings. As the current year unfolds, investors’ appreciation should build as its progress is demonstrated in reported results, and they see SMSI’s valuation multiple being rewarded accordingly over the next 12 months.
08:18 GT Goodyear Tire raising tire prices 7% in N. America – Reuters (24.58 )

Reuters reports the co plans to raise prices on car and light truck tires by up to 7% in North America effective Feb. 1, a spokesman said. Goodyear notified retailers that prices on its consumer tires would increase for orders on or after Feb. 1 because of continued increases in raw materials, transportation and other costs, spokesman Jim Davis said.
08:17 Decline in the S&P Retailing Index has provided solid margins due to lower inventory levels

Brean Murray believes the decline in the S&P Retailing Index has declined 9.6%. Firm believes this decline, which has affected virtually all players to some extent, has provided a solid investment opportunity for the holiday winners that registered strong sales or, more likely, solid margins due to lower inventory levels. Firm believes the investment community (and the general press) has continued to ignore the material ongoing changes to the supply side of the retailing equation, which they believe will allow many players to maintain their earnings guidance in the face of mediocre top-line sales. Firm expects their comps universe to reiterate earnings guidance for the quarter; they would not be surprised to see Aeropostale (ARO) raise guidance slightly.
08:15 KKD Krispy Kreme elects new Chief Executive Officer (2.83 )

Co announces that its Board of Directors has elected the co’s Chairman of the Board, James Morgan, to the additional positions of President and CEO. Morgan’s election is not an interim appointment, and it is anticipated that he will serve as President and CEO for the foreseeable future. Morgan has replaced Daryl Brewster, who has resigned from the co for personal reasons. Brewster will remain as an employee of the co until the end of Jan and be available to assist in the transition.
08:15 UNH UnitedHealth downgraded to Hold at Stifel (56.00 )

Stifel downgrades UNH to Hold from Buy based on industry pressures and UNH specific items. The firm says their investment rationale for the sector is changing from one focused on improving fundamental operations in order to grow profit margins – to one focused on redeploying proven technology toward managing growing government programs while maintaining existing commercial business. Between now and then, the Presidential election and inevitable changes to Medicare M.C.O payments may maintain or pressure valuations. The firm also says fundamentals have stabilized and managements’ have opened the door to slower growth.
08:14 TM Toyota Motor stock may be a buy – WSJ (103.94 )

WSJ reports may well have had a landmark 2007, yet its shares slid 24% during the year. Now, some analysts say 2008 could be a good time to give the stock another look. Contributing to that drop were weak sales in the U.S. amid higher fuel prices, the subprime-lending crisis and a steep decline in housing sales. Another factor hitting Toyota’s results was the strengthening of the yen against the dollar; a rising yen decreases the value of earnings repatriated from overseas markets when calculated in yen. And for 2008, economic forecasts for North America — where Toyota got more than 36% of its revenue in the fiscal year ended March 2007 — remain gloomy. Nonetheless, some analysts say Toyota’s shares have fallen too far in recent months. They say the stock’s fall hasn’t taken into account the car maker’s strong growth projections in the emerging mkts of China, Russia and India as well as its record of cutting costs to offset the U.S. slowdown.
08:13 ENOC EnerNOC names Darren Brady Chief Operating Officer (46.93 )

08:13 PANC Panacos Pharma announces that Jane Pritchett Henderson has joined the co as Chief Financial and Business Officer (0.72 )

08:13 Blu-Ray the winner? – Kaufman

Kaufman notes on Friday Warner Brothers announced that it would use Blu-Ray as the exclusive high definition format beginning June 1, 2008. Firm believes that consumers have been slow to adopt high definition DVD players for several reasons: the price of the player, the scarcity of content and the absence of a clear winner in the standards battle. The price points are coming down; in checking on Amazon HD-DVD players are now $178, Blu-Ray players are $309 and even the dual format player is now $799. Firm believes just as consumers were slow to select a box, studios have been slow to convert content to the newer formats as they too were unsure of the ultimate winner. Now with Warner Brothers choosing Blu-Ray they believe that studios will begin to convert more content from standard definition to high definition, and that non-gaming consumers can get off the fence on buying a DVD player.
08:11 ID L-1 Identity Solutions to acquire Bioscrypt in a stock-for-stock transaction; neutral in 2008, accretive in 2009 (17.30 )

Co has entered into a definitive agreement with Bioscrypt, a provider of enterprise access control solutions headquartered in Ontario Canada, to acquire all outstanding Bioscrypt shares in a stock-for-stock transaction. The acquisition reinforces L-1’s strategic vision to expand its market leadership into physical and logical access control. Furthermore, it dramatically increases the co’s presence in complementary commercial markets, including transportation, banking / finance and healthcare. Under the terms of the definitive agreement, L-1 will purchase Bioscrypt shares for C$0.55 per share, representing a total purchase price of approximately C$44.0 mln. Bioscrypt is expected to add $20 mln in rev and be Adjusted EBITDA neutral in 2008. It is expected to be Adjusted EBITDA accretive in 2009.
08:11 OMC Omnicom’s BBDO invests in China’s Shunya Communications Group (45.50 )

The co announces a significant minority investment in China’s Shunya Communications Group through BBDO. Under the agreement, Shunya’s four principal operating agencies — Shunya Intl, Shunya Profuture Events Marketing, Shunya Intl PR and Shunya PR — will, subject to final regulatory approval, become a part of Omnicom’s BBDO, Proximity, Porter Novelli and Pleon respectively.
08:09 SPWR Sunpower and GE unit partner on California solar projects (126.12 )

GE Energy Financial Services, a unit of GE, announced today that it is partnering with SPWR to provide financing for five California solar power projects. The projects, totaling approximately eight megawatts, include a system for Toyota Motor (TM) Sales’ Parts Center that will be the largest single-roof solar power installation in the United States. The companies are also collaborating on solar projects for HPQ, Agilent (A) and two county and regional agencies. GE Energy Financial Services is acquiring a majority equity interest in the five solar photovoltaic projects, which SPWR will design and build, operate and maintain.
08:08 FALC FalconStor Sftwr: Primed for growth in 2008 and beyond – Susquehanna (10.31 )

08:07 LIFC LifeCell issues Q4 rev guidance, reaffirms FY07 EPS guidance, and issues FY08 guidance (43.13 )

As mentioned at 8:04 co issues upside rev guidance for Q4 (Dec), sees Q4 (Dec) revs of $52.6 mln vs. $50.13 mln First Call consensus. Co reaffirms guidance for FY07 (Dec), sees EPS of $0.80-0.82 vs. $0.82 consensus. Co issues guidance for FY08 (Dec), sees EPS of $0.98-1.06 vs. $1.06 consensus; sees FY08 (Dec) revs of $233-243 mln vs. $232.38 mln consensus.
08:07 GMTC Gametech: Roth expects upside to Q4; raising est and tgt to $11 (7.20 )

Roth is raising their ests and tgt on GMTC as they expect the co to post better than expected results next week driven by strong VLT sales in Louisiana combined with aggressive debt reduction and share repurchases. For the quarter they are increasing their 4Q07 est by a penny to reflect strong VLT sales in Louisiana. Firm is also increasing their FY08 and FY09 ests by $0.01 and $0.03, respectively, to reflect the GMTC’s aggressive debt reduction and share repurchases. Finally, firm is increasing their tgt from $10 to $11 to reflect their new earnings expectations.
08:06 ITMN InterMune announces progress of ITMN-191 (13.38 )

Co provides an update on the progress of its Phase 1b multiple-ascending-dose (MAD) clinical trial. Co says “We are very pleased to announce that after completing the first two low-dosage cohorts, we have already achieved the principal goals of the MAD study for viral kinetic performance, safety and tolerability and are now advancing the program to study ITMN-191 in combination with Pegasys and ribavirin. In view of the very favorable safety profile observed to date, we will continue dose escalation in the MAD trial to a third and possibly fourth cohort… We will submit to the appropriate European authorities the clinical trial authorization application to gain approval to begin a 14-day triple combination study of ITMN-191 with Pegasys and ribavirin in Q2.” The company also announced that it is on track to announce top-line viral kinetic and safety results from at least three treatment-na?ve dose cohorts of the ongoing MAD clinical study later in Q1.
08:06 CODI Compass Group acquires Fox Factory; acquisition will be accretive (14.64 )

Co announces that on 1/4, CODI simultaneously entered into a definitive agreement to acquire and consummated the acquisition of Fox Factory. Under the terms of the transaction, CODI’s acquisition of Fox is based on a total enterprise value of $85.0 mln. Fox management will invest in the transaction alongside CODI resulting in an initial minority ownership of approximately 24%. Upon closing, this acquisition will be accretive to CODI shareholders and increase cash flow available for distribution.
08:06 SHLM A. Schulman urges stockholders to elect the company’s experienced and qualified slate of directors (21.86 )

Starboard Value and Opportunity Master Fund, an affiliate of RCG Starboard Advisors and Ramius Capital Group, announce that Institutional Shareholder Services, an independent proxy voting advisory and corporate governance services firm has recommended that stockholders of SHLM vote on Ramius’ GOLD proxy card to elect both Michael Caporale, Jr. and Lee Meyer to the Board of Directors of Schulman at its 2007 Annual Meeting of Stockholders, which is scheduled for 1/10.
08:06 NSTK Nastech Pharm Appoints Bruce York as Interim Chief Financial Officer

08:05 EDS EDS: Indiana Awards EDS New $209 Million Medicaid Contract

08:05 LIFC sees FY08 $0.98-1.06 vs $1.06 First Call consensus; sees revs $233-243 mln vs $232.38 mln First Call consensus

08:04 LIFC reaffirms FY07 $0.80-0.82 vs $0.82 First Call consensus

08:04 LIFC sees Q4 revs $52.6 mln vs $50.13 mln First Call consensus

08:04 MR Mindray Medical announces preliminary FY07 results above prior guidance (39.86 )

For the year ended December 31, 2007 Mindray expects net revenues to be in the range of RMB2,180 million to RMB2,200 million, compared to RMB1,515 million in 2006, or 43.9% to 45.2% year-over-year growth. The non-GAAP net income is expected in the range of RMB640 million to RMB660 million, compared to RMB416.8 million in 2006, or 53.6% to 58.4% year-over-year growth. Co said, “We are pleased to announce preliminary results for 2007 that surpass our previously issued guidance for the year”.
08:04 CRDC Cardica receives $2 mln payment from Cook Medical for successful completion of multiple milestones (8.83 )

08:04 OPTR Optimer Pharma awarded grant from the National Institutes of Health for development of OPT-80 to treat deadly hospital associated infection (6.90 )

Co has been awarded a $1 mln annual federal grant which will be applied to the late-stage development of OPT-80 to treat Clostridium difficile-Associated Diarrhea. The $1 mln grant is renewable each year until August 2010 to a maximum of $3 mln over a three year funding period.
08:03 QBAK Qualstar sees Q2 revs at high end of previous guidance (3.27 )

Co sees Q2 revs of $5.85-5.95, compared to previous guidance of $5.2-6.1 mln, vs $5.62 mln two analyst estimate. CEO says, “The strength of our second quarter preliminary revenues was the result of gains across several tape library technologies. In addition, I continue to be pleased with the performance of our N2Power business, which is well positioned to capitalize on the strong demand for our highly-efficient power supplies resulting from increasing worldwide energy concerns.”
08:03 PTEC Phoenix Tech sees Higher-Than-Expected Q1 Revenues and Increased Full Year Guidance; sees revs $16.8-17.2 mln vs $16.60 mln First Call consensus (11.64 )

Co says it expects its Q1 revenues and cash balances to exceed analyst expectations. Co sees Q1 sees revs $16.8-17.2 mln vs $16.60 mln First Call consensus, and end-of-quarter cash and cash-equivalent balances in excess of $70 mln, up more than $7.3 mln from the prior quarter’s level. “We have had a remarkably successful quarter in terms of both sales and cash flow, and have dramatically increased our total order backlog… We executed new long-term volume purchase agreements with many of our key customers and as a result, our total backlog at the end of calendar 2007 exceeded $52 mln, an increase of more than $30 mln from the year ago level. This backlog reflects numerous new agreements including long-term contracts with some of our largest customers such as Samsung, Quanta, Compal, Wistron and Inventec… We anticipate that approximately half of this total backlog will be reflected as revenue during the remainder of fiscal year 2008 and we therefore now expect not only that our first quarter revenue will be approximately 75% above the year ago quarter, but that our full fiscal year revenue will be approximately $70 mln (consensus $68.0 mln) or almost 50% above fiscal year 2007.”
08:03 RMIX U.S. Concrete announces that its Board of Directors approved the repurchase of up to 3 mln shares of its common stock (2.90 )

08:03 ANSW Answers announces it is working with Nokia to offer owners of Nokia Series 40 and S60 devices access to collection of over 4 mln answers (6.86 )

Co announces that it is working with Nokia (NOK) to offer owners of Nokia Series 40 and S60 devices access to its collection of over four mln answers. The service is being made available in the Download! client on Nokia devices. The service features a convenient lookup box offering quick definitions on any word or phrase.
08:02 ABMD Abiomed announces AB5000(R) Portable Circulatory Support Driver (14.48 )

Co announces that it has developed a new Portable Circulatory Support Driver for both in-hospital and out-of-hospital patients, designed to support co’s AB5000 Ventricular Assist Device.
08:02 ALNY Alnylam Pharmaceuticals launches its RNAi 2010 outlook for key scientific, clinical, and business initiatives; announces goals and guidance for 2008 (29.42 )

Co announces that it has launched its “RNAi 2010″ outlook for key scientific, clinical, and business initiatives as the company maintains its commitment to translating the science of RNAi into innovative medicines and building a leading biopharmaceutical company. By the end of 2010, co expects to have four or more RNAi therapeutic programs in clinical development. The co also announced its product and business goals for 2008, the initiation of a development program, and updated its 2007 year-end cash position. Co exceeds financial guidance and ends 2007 with greater than $450 mln in cash as compared with its previous 2007 cash guidance of greater than $435 mln.
08:02 LEE Lee Enterprises plans stock buyback of up to $30 mln (11.86 )

08:02 AERO AeroGrow guides Q3 revs above consensus (6.17 )

Co issues upside guidance for Q3 (Dec), sees Q3 (Dec) revs of $14-14.5 mln vs. $12.33 mln First Call consensus.
08:01 BRCM Broadcom and Microsoft collaborate on next-generation IPTV system-on-a-chip (24.97 )

Microsoft (MSFT) and Broadcom Corporation (BRCM) announce a collaboration in Internet Protocol Television products. The collaboration includes Microsoft and Broadcom working together to enable the popular Microsoft Mediaroom IPTV client software to operate on next-generation set-top boxes utilizing the Broadcom BCM7405 System-on-a-Chip. This technology will permit service providers and original equipment manufacturers to support a range of features such as whole-home digital video recording, high-performance user interfaces, and photo and music sharing.
08:01 ALKS Alkermes announces agreement for the commercialization of VIVITROL in Russia/CIS; to receive upfront and milestone payments up to $39 mln (14.79 )

Co announced that it has entered into an exclusive agreement with Cilag International, a subsidiary of Johnson & Johnson (JNJ), to commercialize Vivitrol (naltrexone for extended-release injectable suspension) for the treatment of alcohol and opioid dependence in Russia and other countries in the Commonwealth of Independent States (CIS). As part of the agreement, Cilag International will pay upfront and milestone payments up to $39 mln as well as ongoing royalties on commercial sales of Vivitrol in this territory. The product will be commercialized by Janssen-Cilag, an affiliate company of Cilag International. Alkermes will retain exclusive development and marketing rights to Vivitrol in all markets outside the U.S., Russia and other countries in the CIS. In the U.S., Vivitrol is commercialized primarily by CEPH.
08:01 FEED AgFeed Industries receives Chinese government grant (9.45 )

Co announces that its Lushan Breeder Hog Farm was designated a “National Breeder Hog Center” by the Chinese government. AgFeed will receive RMB 300,000 in an annual grant from the govt in recognition of its outstanding breeder hog products.
08:01 Office vacancy rate rises for the first time in 4 years – WSJ

WSJ reports for the first time in four years, the national vacancy rate for office buildings rose in the fourth quarter, as an unusually large amount of new space came on the mkt and tenants shied way from signing new leases. Demand for commercial buildings has begun to slow and vacancy rates to climb in several mkts, such as Orange County, Calif., and Las Vegas, that have been particularly hard hit by the nation’s housing slump and turmoil in the residential mortgage mkt. Nationally, the office vacancy rate — as measured by 79 metropolitan mkts — rose to 12.6% at the end of the fourth quarter from 12.5% at the end of the third quarter, according to Reis.
08:00 QBAK sees Q2 revs of $5.85-5.95 mln, compared to previous guidance of $5.2-6.1 mln

08:00 ITI Iteris Holdings Secures $547K Contract from the Utah Department of Transportation for Vehicle and Pedestrian Support Services (3.81 )

08:00 CELL Brightpoint to Distribute Garmin Products in United States (13.63 )

CELL announced that it will provide product distribution services for Garmin (GRMN) within the United States. Brightpoint, through its various distribution sales channels, will market and distribute a range of Garmin’s mobile phone products including the Garmin Mobile for BlackBerrys, Garmin Mobile for Smartphones, and Garmin Mobile XT in the U.S.
08:00 S&P futures vs fair value: +9.3. Nasdaq futures vs fair value: +7.5.

Stock futures suggest a positive opening, as some investors look for bargains following last week’s sharp decline. Also aiding the positive start, McDonald’s Corp. (MCD) is planning to install coffee bars at its U.S. locations beginning this year in a move to capture customers from a weakened Starbucks (SBUX). The Consumer Electronics Show is underway in Las Vegas from January 7-10, and should bring some attention to the tech sector.
07:59 LINTA Liberty Media expected to announce today that it has bought a stake in Bodybuilding.com – WSJ (17.49 )

WSJ reports is expected to announce today that it has bought a controlling stake in sports-nutrition retailer and fitness Web-site operator Bodybuilding.com. Liberty is paying more than $100 mln to buy the stake from the site’s founding family and a private-equity co, according to a person familiar with the matter, although it isn’t expected to disclose terms.
07:57 ACLI American Commercial Lines upgraded to overweight at boutique firm (14.66 )

07:56 CSR China Security and Surveillance: Growth story continues; valuation too attractive to ignore – Susquehanna (19.81 )

07:55 Race to land aircraft work in India and United Arab Emirates – WSJ

WSJ reports a race to build jetliner-maintenance facilities in UAE and in India shows how the aviation boom is lifting local industries world-wide — but some warn of an investment bubble. The region’s maintenance gold rush pits an air-travel bonanza in populous India against a Dubai awash in cash and eager for a leading role in the global marketplace. If air traffic in the two mkts keeps rising, both could win. But when these mkts dip — as industry officials say they inevitably will with the cyclical aviation sector — investors could be stuck with vacant hangar bays or be forced to slash rates… Dubai, which has used its oil wealth to create a giant carrier, Emirates Airline, and a major aircraft-leasing co, DAE Capital, now plans to become a player in the $41 bln global aircraft-maintenance industry. Dubai is creating a 140-square-kilometer (about 56 square miles) aviation center, including an airport intended to be among the largest.
07:53 EPB El Paso Pipline: Initiation details (23.86 )

As mentioned at 6:44, UBS initiated EPB with a Buy and a $30 tgt. The firm believes EPB is a high quality MLP with solid assets, stable cash flows, and multiple organic growth opportunities. Additionally, they believe EPB will benefit from its close relationship with EP, as this union offers access to experienced mgmt, solid infrastructure, and strong commercial relationships. Along with an experienced board, EPB’s ties to EP enhance the possibility for strategic acquisitions.
07:53 Calyon raises tgt on CAM, NOV, NE, RIG, SII, SLB, and WFT

Calyon raises thier tgt on CAM, NOV, NE, RIG, SII, SLB, and WFT as they believe that the strong performance exhibited by these stocks in 2007 will be sustained in 2008. In their view, the robust growth prospects and solid industry fundamentals merit higher valuations for these stocks. NOV tgt raised to $92 from $86; SLB tgt raised to $114 from $102; SII tgt raised to $81 from $76; WFT tgt raised to $87 from $76; CAM tgt raised to $62 from $55; NE tgt raised to $69 from $61; RIG tgt raised to $164 from $148.
07:52 CEA China Eastern Airlines: Cathay entrance a boost for Air China bid for CEA – WSJ (85.88 )

WSJ reports an entrance by Cathay Pacific Airways into any bid by its partner Air China for a stake in China Eastern Airlines could bolster the move by bringing the expertise of a consistently profitable global airline to the table. China National Aviation., the parent of Beijing-based Air China, said in a statement late Sunday it plans to make a hostile offer of at least HK$5 a share to buy between 24% and 30% of China Eastern and become its strategic partner if the Shanghai carrier’s shareholders reject the tie-up with Singapore Airlines at a meeting Tuesday. The statement didn’t mention Cathay Pacific directly but said Air China “and its business partners” would cooperate together in any strategic partnership with China Eastern. Cathay Pacific said late Monday in a statement to the Hong Kong stock exchange that it “will seriously consider any proposals” made by Air China on Cathay’s participation in such a strategic partnership. The form of Cathay’s participation remains under discussion…
07:52 Jefferies assumes coverage of select specialty finance stocks

Jefferies assumes coverage of select specialty finance stocks. The firm expects the deteriorating consumer credit environment will work against shares of debt collectors over the next 12 months. The firm says while volume of charged off debt is likely to increase and bring pricing to more attractive levels in 2008, they expect operating expenses to continue to rise as collections become more difficult. The firm initiates. The firm assumes and reits their Hold rating on Asset Acceptance Capital (AACC) Encore Capital (ECPG) Portfolio Recovery Assoc. (PRAA), and Technology Investmt Cap (TICC).
07:50 EU Energy Commissioner Piebalgs says oil prices to reach $120/bbl this year – Bloomberg

07:48 SNE Sony: In Blu-ray coup, Sony has opening but hurdles, too – WSJ (52.42 ) -Update-

WSJ reports the co’s Blu-ray technology for high-definition DVDs has given the Japanese electronics giant an opportunity it hasn’t had in 25 years: the chance to win a high-stakes format war and reap the benefits across its sprawling empire. However, its victory comes at a high cost and may be fleeting. Sony on Friday scored a key win by luring Time Warner’s (TWX) Warner Bros. to its Blu-ray technology, putting itself in a position to triumph over Toshiba’s HD DVD after a years-long fight to become the standard for the next generation of DVDs. However, Sony’s push for Blu-ray — which analysts estimate as an investment of hundreds of mlns of dollars — has cost the co in areas such as the key videogame mkt. Many analysts believe that Sony’s insistence on putting Blu-ray on its PlayStation 3 players gave it just enough extra consumers to help tilt next-generation DVD sales toward Blu-ray. Paul Erickson, analyst at the NPD Group’s DisplaySearch, calls it the “X factor” that “saved their Blu-ray fortunes.” Complications related to the Blu-ray technology played a part in repeated delays of the PlayStation 3 release, giving Microsoft’s Xbox a full year in stores before the PlayStation 3 came out in Nov 2006… Even with major studios on board, Sony must still win over consumers to Blu-ray…
07:47 VMC Vulcan Materials: Upgrade details (71.01 )

As mentioned at 6:24, UBS upgraded VMC to Neutral from Sell and lowered their tgt to $74 from $85 after shrs fell 20% in 4 wks. The firm thinks the drop was justified on heightened concerns over: the housing mkt, Florida construction demand, and higher energy costs. Yet they see limited further downside, as they think the just-signed ‘08 6% hike in y/y highway spending and long-term value support shares.
07:46 DBTK Double-Take Software: demand looks steady, price increase catalyst not fully in numbers – Cowen (20.26 )

Cowen notes that Q4 channel checks and the demand outlook continue to point to outperformance for DBTK shares. Firm says conversations with partners indicate DBTK finished off 2007 with positive trends, and they have raised estimates slightly. They say the pricing increase is not fully in Street estimates, and think the stock can outperform the market by 20% over the next 12 months.
07:45 PCBK Pacific Continental preannounces Q4 (10.42 )

Co preannounces Q4 EPS of $0.28 vs $0.30 consensus. Co’s credit quality of the bank’s loan portfolio continues to be good, with nonperforming assets, as a percentage of total assets, of between 40 and 45 basis points. CEO says, “Considering both the quality of the bank’s current loan portfolio and our analysis of classified loan migration trends, we believe our calculation of the adequacy of the allowance for loan losses is sufficient and has accurately captured the inherent risk in the loan portfolio. Independent third party reviews of the loan portfolio and our risk rating systems validate this assessment.”
07:44 GES Guess: Brean Murray’s top pick for 2008 (35.30 )

Brean Murray selects GES as their Top Pick for 2008, as they believe recent price weakness has created an ideal entry point for one of the few retailers that we think has multiple, multi-year, material top- and bottom-line upside drivers. FIrm believes GES remains one of the best-managed players in their universe, with the fashion sense to continue to register top- and bottom-line upside, even in the current difficult retailing environment. With GES now trading at approx 14x their 2008 EPS projections, firm believes the Street has discounted one of the strongest business models in retailing, leaving investors with a highly compelling risk/reward proposition.
07:43 RCI Rogers Comms announces doubling of dividend, preliminary fourth quarter 2007 subscriber statistics and 2008 guidance (43.49 )

Co issues in-line guidance for FY08 (Dec), sees FY08 (Dec) revs of $11.2-11.5 bln vs. $11.25 bln First Call consensus. The RCI Board of Directors has approved an increase in the annual dividend from $0.50 to $1.00 per Class A Voting and Class B Non-Voting share effective immediately. Rogers also announced that an application for a repurchase of its Class B shares in the form of a Normal Course Issuer Bid is being filed with the Toronto Stock Exchange. The Rogers Board of Directors has authorized the maximum number of Class B shares which may be purchased pursuant to the NCIB to be the lesser of 15 million Class B shares, and that number of Class B shares that can be purchased under the NCIB for an aggregate purchase price of $300 million. Co also announced Q4 net subscriber addtions of 158.3 k, churn 3.12%.
07:42 CRM Salesforce.com: Hearing downgraded to sell from neutral at tier 1 firm (58.86 ) -Update-

07:42 RNOW Rightnow Tech: Hearing upgraded to neutral from sell at tier 1 firm (14.11 )

07:41 CRM Salesforce.com: Upgrade details (58.86 )

As mentioned at 6:24, UBS upgraded CRM to Buy from Neutral and raised their tgt to $70 from $55. The firm says with the platform strategy, CRM has done an excellent job at preparing itself for the next chapter in its life where it will be able to build on top of its leadership position. During FY09, CRM will become the 19th public software co in the world to cross the $1 bln rev mark and it will be the only SaaS co to have hit the milestone. They believe that the Force.com offering makes CRM’s platform stickier by allowing the customers to implement custom applications that could extend beyond CRM.
07:41 FCX Freeport-McMoRan Newly minted copper king – Deutsche (99.71 )

Deutsche sees solid rev growth in 2008 from higher copper and molybdenum volumes and longer-term some positive optionality on its reserves. Firm continues bullish on copper and believe that given continued strong imports from China and low supply increases, the copper market should remain tight and sustain current pricing levels. In simple terms they project China’s annual demand growth of 500k (driven by government expenditure on energy infrastructure) should trump a further 100k demand drop from another year of sharply lower US homebuilding in 2008, helping keep supply and demand matched.
07:41 TIBX TIBCO Software: Hearing downgraded to sell from neutral at tier 1 firm (7.62 )

07:40 GPI Group 1 Auto: Hearing downgraded to sell from neutral at tier 1 firm (21.53 )

07:40 NICE Nice Systems receives multi-million dollar orders from two of the top-3 US banks (31.55 )

Co announces that two of the top-3 US banks have recently placed multi-mln dollar orders including NICE Perform – part of NICE SmartCenter, and for the enterprise fraud solution from Actimize, a NICE company.
07:40 A Agilent: Upgrade details (34.77 )

As mentioned at 6:52 BofA upgraded A to Buy from Neutral with a $46 tgt saying shares of A rose 5% in 2007 (vs a 4% gain for the S&P 500), sharply underperforming Bio-Analytical and Electronic Measurement peer groups, owing to an operating shortfall for its Electronic Measurement unit. With growth expectations for the business tempered in FY08, and portfolio mix issues addressed, the risk of future disappointments has been virtually eliminated, allowing investors to focus on continuing momentum for its Bio-Analytical unit
07:38 U.S. video game industry growth seen slowing – Reuters

Reuters reports U.S. video game industry sales growth is expected to slow in 2008 as accelerated demand for software is tempered by a decline in hardware revenue, the Consumer Electronics Association said. Overall U.S. industry sales are seen rising to $17.9 bln in 2008, up 13% from an estimated $15.8 bln in 2007, the CEA said. That compares with a 22% increase from 2006 to 2007.
07:38 WIRES On The Wires

EMCOR Group (EME) announces that its subsidiary, Ohmstede, has acquired Redman Equipment & Manufacturing Company. Redman had annual res of approx $20 mln… TASER (TASR) will unleash the new leopard print TASER C2 personal protection device at the 2008 International Consumer Electronic tradeshow in Las Vegas today. Company also will unveil TASER music player holster… Marine Products (MPX) announces that during 4Q07 it purchased 1,385,800 shares under its share repurchase program.
07:37 ELN Elan and Biogen announces to date the safety data continue to support a favorable benefit-risk profile for TYSABRI (23.04 )

The co and Biogen Idec (BIIB) announce new data on the global utilization, safety and overall patient exposure of TYSABRI. As of late Dec 2007, more than 21,000 patients were on commercial and clinical therapy worldwide. To date, the safety data continue to support a favorable benefit-risk profile for TYSABRI. According to data available to the companies as of late Dec 2007: In the US, approx 12,900 patients were on TYSABRI therapy commercially and approx 2,500 physicians have prescribed the therapy; Internationally, approx 7,500 patients were on TYSABRI therapy commercially; In global clinical trials, approx 700 patients were on TYSABRI therapy; and There have been no cases of progressive multifocal leukoencephalopathy since re-launch in the US and launch internationally in July 2006. In addition, as of mid-December 2007: Cumulatively, in the combined clinical trial and postmarketing settings, up to 30,900 patients have been treated with TYSABRI; and Of those patients, up to 6,300 have received at least one year of TYSABRI therapy.
07:36 December comp sales preview – UBS

UBS notes their store checks indicate strong traffic and pre/post Christmas lines at teen retailers ARO, Hollister and Abercrombie & Fitch. Also, firm is upbeat about GPS, on solid traffic and what appears to be lighter markdowns vs. last year. While ANN struggled with soft traffic, firm believes lean inventory and better merchandising kept discounting more in check than some fear.
07:36 NYX NYSE Euronext reports transaction volume in US and European trading operations for 2007 (79.77 )

The co reports “record transaction volumes in U.S. and European trading operations for 2007 with impressive gains in overall volume in all categories in Dec and full-year 2007. Euronext’s cash mkts registered their third consecutive record year, with 323 mln transactions, up 47% on 2006. With a record average daily volume of 2.6 bln shares handled on NYSE Group exchanges in 2007, NYSE Euronext’s U.S. cash equities exchanges reported an overall volume increase of 16% for the full year 2007. Liffe traded a record 949 mln futures and options contracts in 2007, up 30% on 2006. Total volume for equity options trading on NYSE Arca Options reached record levels trading 336 mln contracts in 2007, an increase of 71% compared to 2006.”
07:34 ANN AnnTaylor: UBS does not think things are as dire as many fear (23.14 )

UBS notes ANN’s sell-off reflects 1) fears that 4Q discounting at Ann Taylor will offset margin gains at LOFT causing ANN to miss 4Q plan, and 2) fears that pressures faced by mature women’s chains CHS, CWTR & TLB since mid-06 will also hurt ANN. Firm does not believe ANN discounting exceeded plan, as 1) their analysis suggests that while some email promotions were added this yr, their scope and duration were limited. At the same time, in-store discounting is actually flattish/slightly better than LY at Ann Taylor and much better at LOFT, and 2) they believe ANN was conservative with their updated outlook in Nov, taking into account the need to drive traffic. Firm does not believe ANN should be lumped in with CHS, CWTR & TLB
07:34 JEF Jefferies Group issues downside Q4 guidance (19.79 )

Co issues downside guidance for Q4 (Dec), sees EPS of (0.17) vs. $0.33 First Call consensus; sees Q4 (Dec) revs of $345-365 mln vs. $390.88 mln consensus. The co said “… During the fourth quarter, which historically has been one of the strongest periods of the year for the Firm, Jefferies experienced weak results in its high yield and asset management businesses, as well as losses in two principal trading efforts. While investment banking performance was strong, a number of deals were postponed due to market conditions. As a result of the losses and overall revenue shortfall, as well as the mix of revenues, which affects the Company’s flexibility in its year-end compensation process, Jefferies expects to incur significantly higher compensation costs in the fourth quarter, and this is the primary variance that results in the quarterly loss. These preliminary results are subject to audit. Jefferies expects to release the results for the fourth quarter and year ending December 31, 2007 on January 23, 2008.
07:33 SCHN Schnitzer Steel misses by $0.22, misses on revs (63.65 )

Reports Q1 (Nov) earnings of $0.85 per share, $0.22 worse than the First Call consensus of $1.07; revenues rose 18.4% year/year to $604 mln vs the $676.2 mln consensus. Co said, “As expected, our Metals Recycling Business was impacted by both the high cost of ocean freight as well as the tight supply of ships to carry export cargos. The latter resulted in the delay of five shipments, which should be reflected in our second quarter sales volumes. In addition, the positive long-term fundamentals for recycled metals of strong demand and a relatively tight supply appear to be resulting in upward price trends in both the domestic and export markets.”
07:33 NYT New York Times: The Times and CNBC will share material on web sites – NY Times (16.99 )

NY Times reports CNBC (GE) and the co have agreed to share material on their Web sites, uniting the main competitive targets of the News Corporation’s new ventures, the Fox Business Network and The Wall Street Journal. The deal, which takes effect Monday, will mostly involve posting Times articles and other written material on CNBC’s site, and CNBC video on the Times site, the two cos said. No money will change hands.
07:32 HGG HHGregg reports Q3 comparable store sales of 3.0%; reaffirms Y08 guidance (12.65 )

Co reports Q3 comparable store sales of 3.0%. Co reaffirms Y08 guidance of $0.95-1.03, ex-items, vs $1.00 consensus. CEO says, “We were very pleased with our execution during the holiday season and the third fiscal quarter. We expect the quarter ended March 31, 2008 to be a more challenging quarter given the general economic environment and slowing traffic patterns. We will continue to execute on our store growth plan and will be focused on delivering a superior customer purchase experience.”
07:31 JEF prelim ($0.17) vs $0.33 First Call consensus; revs $345-365 mln vs $390.88 mln First Call consensus

07:31 RTP Rio Tinto buys three iron-ore ships – Bloomberg (406.80 )

Bloomberg reports the co, will pay $315 mln for the construction of three iron-ore ships to increase exports of the steel-making raw material and expand its bulk-cargo fleet. The vessels, to be delivered in 2012, will give customers “better delivery options,” Sam Walsh, the head of Rio Tinto Iron Ore, said in a statement to the Australian Stock Exchange today. The 250,000-ton ships will be built by Namura Shipbuilding.
07:31 IBM IBM and NetApp: Downgrade details (101.13 )

AS ment ioned at 6:52, UBS downgraded IBM and NTAP to Neutral from Buy. The firm says while both are down significantly & recent quarters look fine, they are adjusting their ratings to reflect their view that shares could be range bound due to spending pressures long-term. For IBM, hardware & services sales could be pressured as it has the largest financial services exposure in the sector. The firm is also lowering their tgts for JAVA, DELL and EMC. They see slower storage, server & PC spending in ‘08 due to economic pressures (especially in financial services and retail), as well as customers seeking to utilize hardware better.
07:31 EGT Elixir Gaming reports 2007 year-end installed base of 1,542 electronic gaming machines gaming machine participation venues increased from 2 to 12 in Q4 (4.23 )

Co announces it’s installed base of electronic gaming machines was 1,542 units as of December 31, 2007, exceeding previous market guidance. The units are installed across 12 venues, with 566 installed at 3 venues in the Philippines and 976 installed at 12 venues in Cambodia. “We believe that the installed base can continue to increase by an average of approximately 1,000 units on a quarterly basis throughout 2008.”
07:30 HGG reaffirms Y08 guidance

07:30 SWKS Skyworks: Overreaction- momentum remains strong; raising ests – CIBC (7.58 )

CIBC believes investors’ reaction to the potential impact of a U.S. handset inventory build on Skyworks is exaggerated. Based on our checks, SWKS’ Dec. quarter was strong and ahead of consensus. Firm also expects March guidance to come in ahead of consensus and raises their ests. Firm’s checks suggest that Skyworks hasn’t seen any change in orders from Motorola and Samsung, its two major U.S.-centric OEM customers. Even assuming a worse case U.S. inventory scenario, they est Skyworks’ exposure at $3-$4 million at most. Firm believes this is nominal.
07:30 SCHN prelim $0.85 vs $1.07 First Call consensus; revs $604.0 mln vs $676.22 mln First Call consensus

07:30 Cowen initiates select Fashion and Beauty brands

Cowen says despite the recent significant sell-off in the group, limited visibility into earnings power and valuations still above historical trough levels leads them to remain selective. They think investors who need exposure to the group should focus on names with Long term global growth opportunities via strong brands. They say while they rate LIZ and MFB Neutral, they believe both stocks’ near trough valuation levels and focus on women’s fashion and necessities, respectively, could make them attractive on further pullbacks. The firm resumes coverage of Liz Claiborne (LIZ) with a Neutral. The firm also initiates Maidenform Brands (MFB) with a Neutral and resumes Polo Ralph Lauren (RL) with an Outperform.
07:29 TI Telecom Italia to sell Alice internet unit, paper says – Reuters (29.86 )

Reuters reports the co is selling its French internet unit Alice and has mandated Calyon to sell the assets, the Le Figaro newspaper said. The paper added that Alice could be worth between 600 mln and 650 mln euros ($956.9 million) based on the multiple used for the recent buy of Club Internet by Neuf Cegetel.
07:28 RIGL Rigel Pharms upgraded to Buy at Fortis- tgt $29 (23.25 )

Fortis upgrades RIGL to Buy from Hold with a $29 tgt saying Based on a revaluation of Rigel following the successful Phase II clinical trials of R788 in rheumatoid arthritis, we arrive at a new target price of $29 and change our rating from reduce to buy. The recently presented Phase II results suggest that R788 is at least as efficacious as many of the biologic agents currently marketed for the treatment of RA but with the advantage of being an oral small molecule.
07:28 Oil $200 options rise 10-fold in bet on higher crude – Bloomberg.com

Bloomberg.com reports the fastest-growing bet in the oil market these days is that the price of crude will double to $200 a barrel by the end of the year. Options to buy oil for $200 on the New York Mercantile Exchange rose 10-fold in the past two months to 5,533 contracts, a record increase for any similar period. The contracts, the cheapest way to speculate in energy markets, appreciated 36% since early December as crude futures reached a record $100.09 on Jan 3. While analysts at Merrill Lynch and UBS say the slowing U.S. economy will lead to the biggest drop in prices since 2001, the options show some traders expect oil to rise for a seventh straight year.
07:28 KNOL Knology: Closes Graceba deal, cash flow makes stock cheap – BWS Financial (11.36 )

BWS Financial notes that KNOL has closed on the acquisition of Graceba Total Communications. Firm does not believe competitive pressures would have an impact on how KNOL does business. Nor do they believe that there would be significant churn as competition increase. KNOL has a history of using competition as a way of gaining customers not losing them. Firm considers the economic exposure at KNOL to be low due to the subscriber base that KNOL targets, and because they consider cable television as a necessity.
07:28 PCTI PC-TEL: MSG divestiture complete – Robert Baird (6.51 )

Robert Baird notes PCTI completed the divestiture of its MSG division for $64 mln. They are adjusting ests for the divestiture and now model 12% growth in 2008 for the remaining Antenna and Scanner businesses. Firm believes risk vs. reward is favorable given sizable cash position and two profitable and growing business units remaining.
07:27 ESRX Express Scripts tgt raised to $85 on expanding generic opportunity – Broadpoint Capital (73.52 )

Broadpoint Capital raises their tgt on ESRX to $85 from $71 following recent positive developments on the generic drug front. Firm also raises their 2008 EPS est to $2.90 from $2.85. Firm’s revised est is $0.04 ahead of the consensus, and also above mgmt’s guidance range.
07:27 MHS Medco Health Solutions tgt raised to $122 at Broadpoint Capital following expanding generic opportunity (106.06 )

Broadpoint Capital raises their tgt on MHS to $122 from $109 following recent positive developments on the generic drug front. Firm is raising their 4Q07 EPS to $0.83 from $0.79 and raising 2008 EPS to $4.41 from $4.35.
07:25 BID Sotheby’s: Spending up 46% in 2007, but some expect a slowdown as sub-prime losses are felt – Latimes.com (34.94 )

Latimes.com reports that money poured into the sales rooms in New York, London and Hong Kong, swelling auction sales by 46% at BID’s, to $5.33 bln; Christie’s International totals aren’t in yet. Analysts are watching to see whether prices continue to rise in 2008. The biggest financial institutions have marked down more than $80 bln after a surge in sub-prime mortgage defaults prompted investors to shun higher-risk debt. “The art market will soften, and an adjustment in values will take place, but it may not happen for six months to a year,” billionaire Los Angeles collector Eli Broad said in August. “Many of the buyers of contemporary art have been hedge fund managers and other investors who obviously are having a difficult time and have lost lots of money.”
07:23 JASO JA Solar announces 3-For-1 ADS split (71.86 )

07:23 TLB Talbots: Closing kids’ and mens’ concepts; QTD sales below plan; lowering ests – FBR (9.46 )

Friedman Billings notes that TLB announced it was closing its 66 Kids’ and 12 Mens’ stores, a total of 78 stores. The co will take a $5 mln (almost all) noncash charge for 4Q07 ($0.06) and will take another $34-$42 mln ($0.40 to $0.49) in charges in FY08. The company anticipates operational benefits of $13-$15 mln ($0.15 to $0.18) annualized from the closure; however, top-line sales will shrink by approx $100 mln annualized. To reflect the lowered 4Q07 sales outlook, firm is lowering their 4Q07 LPS est from ($0.12) to ($0.17), pro forma; including the ($0.06) charge, their GAAP 4Q07 LPS is now ($0.23).
07:22 SBUX Starbucks: Friedman Billings believes SBUX is severely undervalued (18.11 )

Friedman Billings notes that although they recognize that the co continues to face internal and external pressures that are impacting its current valuation relative to its peers, firm’s sum of the parts analysis indicates that the co is severely undervalued. Firm continues to believe that the dramatic downturn in the company’s fundamental performance and valuation further increase the chances of it becoming the target of shareholder activists and more immediately, value investors.
07:22 PSUN Pacific Sunwear: d.e.m.o. to close; PacSun strength no longer obscured – FBR (12.28 )

Friedman Billings announced the closure of its remaining 154 d.e.m.o. stores. This is a significant catalyst that we had been looking for since last fall and was already well telegraphed when the company wrote down the d.e.m.o. assets in 3Q07. The remaining d.e.m.o. stores will close at the end of 1Q08. We believe that this represents a true inflection point for PSUN shares, as the standalone PacSun business, which has been showing signs of improvement since 2Q07, will finally be unhindered by the troubled d.e.m.o. and One Thousand Steps divisions. We believe that the current PSUN share price offers an excellent opportunity for investors to begin to accumulate shares before the remainder of the Street “catches on” to the underlying strength of the PacSun division.
07:21 DTV DIRECTV: Upgrade details (21.58 )

As mentioned at 6:24 Lehman upgraded DTV to Overweight from Equal Weight and raised their tgt to $32 from $30 as they believe DTV could be unusual in reducing churn in 08, which combined with slowing programming cost growth should lift operating leverage and drive relative fundamental outperformance to the group.
07:21 MOT Motorola acquires Soundbuzz (15.07 ) -Update-

The co announces that it has signed a definitive agreement to acquire Soundbuzz, a privately held, leading pan-Asian music provider. Terms of the transaction were not disclosed. The acquisition, which is subject to customary conditions, is expected to close in the first quarter of 2008.
07:21 Potential invested asset write-down exposure manageable for Life Insurers – FBR

Friedman Billings notes mortgage-related write-downs top $94 bln. Firm has estimated the potential realized losses the riskier portions of life insurer investment portfolios could experience based on market pricing for subprime, Alt-A, and jumbo RMBS, as well as CMBS, commercial mortgages, and below investment grade (BIG) debt. They continue to believe that life insurer exposures to realized losses from these investments remain manageable given conservative and diversified portfolios, and the fact that life insurers are generally able to hold these securities to maturity given positive cash flow and excess capital positions.
07:21 SOV Sovereign Banc: Given credit and growth uncertainty, lowering target to $8 – FBR (10.43 )

Friedman Billings cuts their tgt to $8 from $14 based on credit quality uncertainties, particularly regarding home equity, auto, and the next loan category most likely to suffer as firm heads into a recession–commercial business. Three factors combine to cause them to believe that SOV is likely to underperform most other thrift stocks in 2008: 1) SOV’s relatively thin capital levels (risk-based), 2) loan concentration, and 3) high valuation.
07:20 MOT Motorola: Clarification to ASP comments – CIBC (15.07 ) -Update-

CIBC says upon further clarification with their contacts, they believe the ASP drop would be less severe to around ~$110 (vs. previous $118 tgt). The source of the confusion related to the way by which certain adjustments to reserves and marketing allowances impact the ASP calculation. Firm believes an ASP of $110 represents more of an apples-to-apples comparison to MOT’s quarterly reported ASP. Firm continues to believe that MOT has seen some order cuts from U.S. carriers and expects the inventory build to have some impact on shipment volumes in the March quarter. As they noted in their Jan 3 note, MOT’s ability to deliver on EPS depends on how aggressive it has been in cutting opex. Firm expects MOT’s shares to remain under pressure until the inventory issue is cleared.
07:20 NMM Navios Maritime Partners initiated with a Buy at Cantor Fitzgerald- tgt $21 (18.34 )

Cantor Fitzgerald initiates NMM with a Buy and a $21 tgt saying the co focus’s on long-term charter contracts combined with substantially fixed operating costs helps provide clear earnings visibility to support the company’s dividend policy. They expect NMM to also benefit from the continued strength in the dry bulk market driven by continued strong global demand for dry bulk commodities, particularly from China and India, expanding long-haul trading routes, a relatively moderate fleet increase for 2008 and 2009, and ongoing port in various global ports, especially Australia.
07:18 MOT Motorola: In an 8-K out on Friday after the market closed, the co discloses that it will take a $90 mln charge in Q4 due to layoffs (15.07 ) -Update-

In its 8-K filed Friday after the market closed, the co discloses that “During the fourth quarter of 2007, in connection with such previously announced workforce reductions, the co has taken specific actions that will result in severance costs relating to approximately 1,600 additional employees. The result will be a net pre-tax charge in the fourth quarter totaling approximately $90 mln, comprised of $90 mln in charges for severance costs and $9 million of exit costs for leased facilities associated with the cost-reduction initiatives described above, partially offset by $9 mln of reversals for accruals from prior periods that are no longer needed. All of the above estimated charges are expected to result in future cash expenditures during 2008…”
07:17 FSLR First Solar initiated with a Buy at Merrill- Bloomberg (245.58 )

07:16 SHFL Shuffle Master downgraded to Hold from Buy at Deutsche Bank (10.02 )

07:16 HMA Health Management upgraded to Outperform from Market Perform at Wachovia (5.48 )

07:16 EBS Emergent Biosolutions issues upside FY07 and FY09 rev guidance (4.99 )

Co issues upside guidance for FY07 (Dec), sees FY07 (Dec) revs of $183 mln vs. $180.82 mln First Call consensus. Co issues upside guidance for FY08 (Dec), sees FY08 (Dec) revs of $180-195 mln vs. $160.19 mln consensus.
07:14 CYBS CyberSource profiled in New America section of IBD (17.55 )

IBD reports the co processes credit card, check and other electronic payments for online retailers. It also helps those retailers manage risk and gauge whether the buyer is who he claims to be. Business has been “good” for CyberSource… The co is in a competitive field but the mkt is growing. Online purchases now account for about 5% of total U.S. retail sales, excluding airline tickets, according to Forrester Research. By 2011, Forrester expects online deals to account for 9% of sales. Analysts say e-commerce is growing even faster in Europe and Asia, where CyberSource sees growth… Then there’s the security issue. “There are going to be people who will never shop online because of security,” Sucharita Mulpuru, a retail analyst with Forrester. But, Mulpuru said, shoppers are getting over those fears. It’s the retailers who are still nervous about the whole thing. They’re often the ones who get burned when fraud occurs. To help keep transactions secure, CyberSource can store the necessary customer data so retailers don’t have to. It also ensures compliance with evolving industry security standards. CyberSource also helps the retailer decide whether to accept an order in the first place. Analysts surveyed by Thomson Financial expect 39 cents this year, and 62 cents in 2008.
07:11 WIRES On The Wires

MAP Pharmaceuticals (MAPP) announces it has initiated a Phase 3 clinical trial evaluating Unit Dose Budesonide, the co’s proprietary nebulized version of budesonide, for the potential treatment of pediatric asthma… j2 Global Communications (JCOM) announces that it has licensed its digital fax patents to Copia International.
07:10 EBS guides FY08 revs $180-195 mln vs $160.19 mln First Call consensus

07:09 EBS guides FY07 revs $183 mln vs $180.82 mln First Call consensus

07:08 AIS Antares Pharma develops novel pen injector under new agreement with Teva Pharmaceuticals (0.94 )

Co announced they have entered into a fourth agreement with Teva Pharmaceutical (TEVA) under which Antares will develop and will supply a new disposable pen injector for use with two patient-administered pharmaceutical products. Teva will purchase all of its requirements for the pen injector from AIS for use with the two undisclosed products (both products are subject to FDA approval). AIS will receive an upfront cash payment, milestone fees, and an undisclosed percentage of the selling price of the combined pharmaceutical and device product, net of certain costs. AIS is the manufacturer of record and will also receive the selling price for each injector device from Teva. In addition, AIS retains rights to the new pen injector for use with other pharmaceutical and biological products not covered under the agreement.
07:07 OREX Orexigen Therapeutics reports 48-week results of Phase 2b trial of Empatic to treat obesity (13.95 )

Co announces the 48-week results of the Phase IIb clinical trial of Empatic, one of its two obesity drug candidates. Weight loss through 48 weeks for the highest Empatic dosage arm, in the intent-to-treat–double blind extension and completer groups, was 14.0% and 15.1%, respectively.
07:07 NTG NATCO Group to acquire measurement company, Linco-Electromatic (54.25 )

Co announces a definitive agreement to acquire Linco-Electromatic, which designs, manufactures, distributes and services a line of equipment used to measure oil and natural gas in custody transfer, for approx $23 mln in cash consideration. Co states, “…The acquisition is expected to close during 1Q08 and is expected to be accretive to NTG’s 2008 earnings.”
07:06 ALXN Alexion Pharm commences dosing in AEGIS registration study of Soliris in patients with PNH in Japan (74.61 )

07:06 CRE Care Investment Trust forms joint venture with Senior Management Concepts to acquire $61.0 mln portfolio of assisted living facilities (11.67 )

Co announces that it has formed a joint venture with an affiliate of Senior Management Concepts to acquire four independent and assisted living facilities located in Utah. The total capitalization of the joint venture is $61.0 mln. Co paid $6.8 mln in exchange for 100% of the preferred equity interests and 10% of the common equity interests of the joint venture. The transaction closed on December 31, 2007. Affiliates of Senior Management Concepts will lease the facilities from the joint venture for 15 years.
07:05 HGSI Human Genome announces three late-stage products moving rapidly toward commercialization: Albuferon for hepatitis C, LymphoStat-B for lupus and ABthrax for inhalation anthrax (11.71 )

Co announces its priority goals for 2008 and report on the co’s progress toward commercialization during a presentation by H. Thomas Watkins, President and Chief Executive Officer, to financial analysts and investors at the 26th Annual JPMorgan Healthcare Conference in San Francisco on Wednesday, January 9. “We are performing on plan in every major respect. 2007 was a year of great progress for H.G.S, as we executed well across all areas of our business,… We are poised for the market. In 2008, we expect to accomplish additional key milestones in our transformation into a commercial enterprise. Phase 3 trials of Albuferon for hepatitis C and LymphoStat-B for lupus are well underway. We expect to have our first Phase 3 data for Albuferon in late 2008. We expect to complete enrollment in the Phase 3 trials of LymphoStat-B by fall 2008. The pivotal efficacy studies of ABthrax have demonstrated a dramatic and significant survival benefit in the treatment of inhalation anthrax, and we are on track to begin delivery of ABthrax to the Strategic National Stockpile by fall 2008. Our cash position remains strong and we are making substantial progress toward commercialization.” Mr. Watkins also pointed to the strategic importance of the promising clinical pipeline that follows right behind the co’s three late-stage products.
07:04 DLR Digital Realty Trust acquires Datacentre property in suburban London (35.18 )

Co announces the acquisition of Foxboro Business Park, a three building complex located in suburban London. Co states, “We are continuing to focus on adding both income producing assets as well as buildings suitable for redevelopment to meet the ongoing demand for Turn- Key Datacentres in the supply-constrained London market…”
07:04 FTEK Fuel-Tech responds to Merriman Curhan Ford report (20.79 )

Co notes on December 13, 2007, Merriman Curhan Ford issued a report on Fuel Tech (FTEK) that was based on and quoted extensively from “an independent study involving a panel of industry experts.” This “independent study” was performed by Panel Intelligence, a wholly owned subsidiary of M.C.F. The study was made available the following week and seven anonymous panelists were quoted extensively. Fuel Tech has identified and contacted most of these panelists and a few of them (or their management) have agreed to go “on the record” with the truth about this report from M.C.F’s Panel Intelligence. Here is what they have to say: Two of the panelists were from Breen Energy Solutions and its subsidiary, Quinapoxet Solutions. Writing on their behalf is Mr. Ben Breen, President of Breen Energy Solutions: ” … Overall, I feel I was mislead as to the nature and purpose of this report which seems to have focused on minimizing Fuel Tech market potential and on the effectiveness of their technologies..” The co says the panelist that had the most negative things to say about Fuel Tech was panelist number 6, identified in the report as a “Manager” at Westar Energy. That person was Mr. Terry Maddox and here is what Mr. Doug Sterbenz, Executive Vice President & Chief Operating Officer of Westar Energy, writes about this: “In the Panel Intelligence transcript, Mr. Maddox is identified as a “Manager” employed by Westar Energy. We believe this description may lead a reader to conclude that Mr. Maddox was authorized by Westar Energy to make the statements included in the transcript and that Westar Energy vouches for the accuracy and veracity of the statements made by Mr. Maddox…”
07:04 HOC Holly announces that Bruce Shaw has been elected to the position of Senior VP and Chief Financial Officer (46.97 )

In addition, Mr. Shaw will hold the same position at Holly Energy Partners L.P. (HEP).
07:04 BTRX Barrier Therapeutics narrows Y07 guidance, issues Y08 guidance (3.72 )

Co sees Y07 revs of $23-25 mln, compared to previous guidance of $22-25 mln, vs $23.6 mln consensus. Co sees Y07 net loss of $53-55 mln. Co sees Y08 revs of $46-50 mln vs $49.0 mln consensus. Co sees Y08 net loss of $31-36 mln. CEO says, “Based on IMS NPA data for 2007, we are currently the fastest growing company in therapeutic dermatology, and we expect 2008 revenues to double from our current 2007 revenue estimates. At the same time, we expect to significantly reduce our net loss in 2008 by approximately $20 million, or almost 40 percent, from our 2007 forecast as we continue to focus our investment spending on the highest priority initiatives.”
07:04 TG Tredegar agrees to sell aluminum extrusion operations in canada and approves share repurchase program (14.13 )

Co announces it has agreed to sell its aluminum extrusions operations in Canada for $25 mln to WXP Holdings, Inc., an affiliate of H.I.G. Capital. Closing for the transaction, which is contingent upon the satisfaction of customary conditions, including the receipt of consents, the absence of material adverse changes, the receipt of any applicable regulatory approvals and the expiration of any applicable waiting periods, and certain confirmatory due diligence, is expected to occur in late February, 2008. Tredegar’s earnings press release for the fourth quarter of 2007 is expected to follow the closing of the transaction. The sales price is subject to increase or decrease to the extent that working capital, which typically has seasonal fluctuations, is above or below normalized levels at the closing date. In addition, the co may realize current cash tax benefits from the sale of up to approx $11 mln. The co also disclosed that it plans to spend approx $24 mln over the next 18 months to expand its aluminum extrusions capacity at its plant in Carthage. During the first nine months of 2007, the aluminum extrusion operations in Canada had volume of 46.9 mln pounds, net sales of $119.1 mln, an operating loss of $7 mln, depreciation of $3 mln and capital expenditures of $734,000. During the first nine months of 2006, these operations had volume of 57 mln pounds, net sales of $132.1 mln, operating profit of $981,000, depreciation of $2.9 mln and capital expenditures of $672,000. The co also announced that its board of directors approved a share repurchase program whereby management is authorized at its discretion to purchase, in the open market or in privately negotiated transactions, up to 5 mln shares of Tredegar’s outstanding common stock.
07:03 SGMO Sangamo BioSci initiates Phase 2 clinical trial of ZFP therapeutic in stem cell mobilization (11.96 )

07:03 FOLD Amicus Therapeutics announces positive interim results from Phase 2 clinical trial of Plicera for Gaucher disease (10.07 )

Co announces positive interim results from a Phase 2 clinical trial of Plicera for Gaucher disease. The primary objective of this study was to evaluate safety and tolerability of different doses and dosing regimens of Plicera. The secondary objective is to evaluate certain pharmacodynamic measures of treatment, including effects on GCase (the enzyme deficient in Gaucher patients) levels in white blood cells.
07:03 CPHD Cepheid begins shipment of next generation GeneXpert Molecular Diagnostic Systems (25.36 )

Co announces that it has begun shipment of next generation GeneXpert Systems. The entire GeneXpert family of systems, including the new single module system GX-I, will now feature six-color optical capability that will enable detection of up to 60 individual targets in a single cartridge. The systems will also feature new software that enables Laboratory Information System integration capabilities. The release of these enhancements follows a strong Q4 performance that saw 125 diagnostic GeneXpert System placements in Europe and the U.S. during the quarter.
07:02 ZUMZ Zumiez guides FY08 below consenus; reports December same store sales +3.9% (18.64 )

Co issues downside guidance for FY08 (Jan), sees EPS of $0.82-0.83 vs. $0.93 First Call consensus. Co stated, “While we were pleased to again report positive comparable store sales in December against a very tough comparison, we fell short of our expectations for the month. Although holiday sales were positive, we did not experience the across the board strength that we had planned for. Nevertheless, we remain optimistic about the long term prospects for Zumiez.”
07:01 BTRX sees Y08 revs of $46-50 mln vs $49.0 mln consensus

07:01 BTRX sees Y07 revs of $23-25 mln, compared to previous guidance of $22-25 mln

06:58 PRICE Filings, Offerings, Pricings and IPOs

Filings: Advanced Life Sciences (ADLS) files for a 15.2 mln share offering for selling stockholders. IPOs: Colfax Corp (CFX) files for a $300 mln IPO… IPC Systems Holdings (IPCA) files for a $400 mln IPO.
06:52 CALLS Early Research Calls III

Upgrades: BofA upgrades Agilent (A 34.77) to Buy from Neutral… Merrill upgrades Tele Norte Leste (TNE 18.86) to Buy from Neutral… J.P Morgan upgrades Bed Bath & Beyond (BBBY 26.19) to Neutral from Underweight. Downgrades: UBS downgrades IBM (IBM 101.13) to Neutral from Buy… UBS downgrades Network Appliance (NTAP 24.39) to Neutral from Buy.
06:44 CALLS Early Research Calls II

Upgrades: Bear Stearns upgrades Landstar System (LSTR 38.48) to Outperform from Peer Perform… Citigroup upgrades Ecolab (ECL 50.35) to Buy from Hold… Citigroup upgrades Nalco Holding (NLC 23.15) to Buy from Hold… Morgan Stanley upgrades Eli Lilly (LLY 51.80) to Equal Weight from Underweight… Wachovia upgrades El Paso Corp (EP 16.99) to Outperform from Market Perform… Wachovia upgrades Realty Income (O 22.65) to Market Perform from Underperform. Downgrades: Bear Stearns downgrades Best Buy (BBY 47.61) to Underperform from Outperform… Citigroup downgrades Rohm and Haas (ROH 51.00) to Hold from Buy… Citigroup downgrades Valspar (VAL 21.40) to Sell from Hold… Morgan Stanley downgrades VeriSign (VRSN 35.82) to Underweight from Equal Weight… RBC downgrades Motorola (MOT 15.07) to Sector Perform from Outperform. Miscellaneous: UBS initiates El Paso Pipeline (EPB 23.86) with a Buy.
06:34 WIRES On The Wires -Update-

Focus Enhancements (FCSE) receives a patent for its “Method and Apparatus for Frequency Division Multiplexing” containing key intellectual property for achieving better performance from UWB radios… Sonic Solutions (SNIC) announces that RITEK Corp, a global manufacturer of optical media, has signed a Qflix technology and IP licensing agreement… Reliance Steel & Aluminum (RS) announces that it has sold the assets and business of the Encore Coils division of Encore Group Ltd, a subsidiary of Reliance, to Samuel Son & Co; terms were not disclosed.
06:30 CAMT Camtek sells multiple Falcon Wafer Inspection Systems to a major European supplier of electronic components (1.74 )

Co announces it has sold three Falcon wafer inspection systems to a major global corporation based in Europe that develops, manufactures and markets electronic components and modules. Two Falcons are for semiconductor wafer inspection, while the third Falcon was customized for automated inspection of special ceramic substrates.
06:24 CALLS Early Research Calls I

Upgrades: UBS upgrades Salesforce.com (CRM 58.86) to Buy from Neutral… UBS upgrades Vulcan Materials (VMC 71.01) to Neutral from Sell… Lehman upgrades LAM Research (LRCX 40.02) to Overweight from Equal-weight… Lehman upgrades DirecTV (DTV 21.58) to Overweight from Equal-weight. Downgrades: Soleil downgrades UAL (UAUA 33.15) to Hold from Buy, based on rising evidence that UAL’s pilots have begun to take actions that are compromising the carrier’s operating integrity… UBS downgrades ORBCOMM (ORBC 5.78) to Neutral from Buy… Deutsche Bank downgrades Goodrich (GR 68.51) to Hold from Buy… Lehman downgrades Pearson (PSO 13.57) to Underweight from Equal-weight. Miscellaneous: MDB Capital reinstates Maxygen (MAXY 8.01) with a Buy and sets a $15 tgt, driven by the potential of MAXY-G34 and the co’s protein optimization pipeline and technology platform that includes bio-superior versions of Factor-VII (MAXY-VII), and CTLA-4-lg fusion protein (MAXY-4)… JMP Securities initiates Advanced Analogic Technologies (AATI 9.42) with an Outperform and sets a $13 tgt, as they believe AATI is a high-growth analog semiconductor theme with increasing margins due to its proprietary portable power management designs, cost-effective manufacturing technology implemented at efficient Asian analog foundries such as Vanguard and MagnaChip, and focus on high-growth markets such as cell phones, digital cameras, GPS units, personal media players, and notebook PCs.
06:23 AVCT Avocent guides Q407 revenue lower (20.21 )

Co issues downside guidance for Q4 (Dec), sees Q4 (Dec) revs of $155-157 mln vs. $173.72 mln First Call consensus. Co expects revenue growth rate of 10%-11% for 2008. “We experienced strong sales of Management Systems Division’s branded products in Europe and Asia and record sales at our LANDesk Division,” stated John R. Cooper, chairman and chief executive officer of Avocent Corporation. “However, these results were not enough to offset lower sales of our Management Systems Division’s branded products in North America.”
06:19 BLTI BIOLASE names Jake St. Philip Chief Executive Officer (2.32 ) -Update-

Co also announces that CFO Richard L. Harrison left the co effect Jan. 2, 2008 to accept a position elsewhere.
06:16 S&P futures vs fair value: +11.4. Nasdaq futures vs fair value: +12.5.
06:16 European Markets

FTSE…6359.20…+10.70…+0.2%. DAX…7830.37…+21.68…+0.3%.
06:16 Asian Markets

Nikkei…14500.55…-190.86…-1.3%. Hang Seng…27179.49…-340.20…-1.2%.
06:16 WIRES On The Wires -Update-

Exelixis (EXEL) announces that it has initiated a phase 1/2 trial of XL184 in patients with non-small cell lung cancer who have had progressive disease while on a regimen containing erlotinib… China Digital TV Holding (STV) announces that it has established a new wholly owned subsidiary, Beijing Novel-Super Media Investment Co, to partner with China’s cable operators and content providers to offer value-added services to TV viewers, including Electronic Program Guide-based advertising and PC card-based services which enable PCs to function as HDTVs with DVR features… China Finance Online (JRJC) announces that it has entered into a license agreement with Shanghai Stock Exchange Information Network Co, which is associated with the Shanghai Stock Exchange… CallWave (CALL) announces a partnership with JAJAH, a global communications co, to deliver global Internet telephony solutions for mobile professionals, entrepreneurs and small businesses.
06:13 UDRL Union Drilling enters into rig construction contract (15.68 )

Co announces it has entered into a construction contract with IDM Equipment to provide a 1,600 horsepower AC Fast Moving Quicksilver Drilling System, principally for operations in Pennsylvania targeting the Marcellus Shale formation. The co also has received the commitment of a long-standing customer to execute a three-year drilling contract upon the rig’s delivery, which is expected in June 2008. The cost of the rig, including a top drive, an air circulation system for underbalanced drilling, tubulars, handling tools and crew quarters that are not being supplied by IDM, is approx $17 mln.
06:08 BLTI BIOLASE announces preliminary Q407 revenue (2.32 )

Co announces that, based on a preliminary review of its financial performance, they expect to report net revenue of greater than $20 mln for Q407.
06:06 TFX Teleflex provides FY08 EPS and revenue guidance (61.25 )

Co issues in-line guidance for FY08 (Dec), sees EPS of $3.70-3.90, excluding non-recurring items, vs. $4.20 First Call consensus; sees FY08 (Dec) revs of $2.4 bln vs. $2.53 bln consensus. Chief Executive Jeffrey P. Black commented, “In 2008, the redefined Teleflex portfolio is expected to deliver overall segment operating profit margins in the mid teens for the year, compared with margins of approx 11% for our historic 2006 portfolio of businesses. With the integration of Arrow, our outlook anticipates Medical segment operating margins returning to the 20% range during the year and segment operating margin growth in Aerospace and Commercial. We also expect the increased operating margins and our solid working capital management processes to enable us to deliver another year of strong cash flow.”
05:52 SONO SonoSite guides Q407 and FY07 revenue in-line (34.04 )

Co issues in-line guidance for Q4 (Dec), sees Q4 (Dec) revs of $65 mln vs. $62.80 mln First Call consensus. Co issues in-line guidance for FY07 (Dec), sees FY07 (Dec) revs of $205 mln vs. $203.03 mln consensus.
05:44 GS Goldman Sachs close to completing Northern Rock financing: Paper – Reuters (199.93 )

Reuters reports Goldman Sachs (GS) is close to completing a 15 bln pound ($29.5 bln) financing package to be used by suitors for Northern Rock, the Sunday Times reported, adding details may be unveiled this week. The paper, quoting no sources, said the deal put together by U.S. investment bank Goldman Sachs was understood to be on better terms than packages being pulled together by rivals including Citigroup (C) and could break the bid impasse. Northern Rock declined to comment. Goldman Sachs, called upon last month to help put together a financing package, was not immediately available for comment.
05:42 SNE Sony says N. American PS3 holiday sales hit 1.2 mln – Reuters (52.42 )

Reuters reports Sony (SNE) sold 1.2 mln PlayStation 3 video game consoles in North America over the holiday season, the co said on Sunday. The co also said it sold 1.4 mln of its handheld PSP devices and 1.3 mln units of the older PlayStation 2. The sales figures covered the period from November 23 to December 31.
05:40 Nokia Siemens wins $935 mln Saudi Arabia deal – Reuters

Reuters reports Nokia Siemens Networks said on Monday it had won an order worth $935 mln from telecom operator Zain to build second- and third-generation mobile networks in Saudi Arabia. Nokia Siemens Networks, a 50-50 joint venture between Nokia (NOK) and Siemens (SI), said the deal includes a managed services contract for five years. Zain, Kuwait’s biggest mobile operator, made the highest bid for Saudi Arabia’s third mobile license last year, paying $6.1 bln as part of its expansion in the Middle East.
05:38 CNET Investors said to seek a takeover of CNet – NY Times (8.56 )

The NY Times reports a consortium of prominent investment funds has amassed a 21% stake in CNet (CNET) and is seeking to oust the co’s directors and take over a majority of its board, according to people briefed on the proposal. The consortium sent a letter about its plan to the CNet board two weeks ago, these people said, which the co has yet to disclose. The consortium is led by Jana Partners, these people said. It also includes Sandell Asset Management as well as a venture capital firm, Spark Capital, and Paul Gardi, an entrepreneur who created the underlying search technology for Ask Jeeves, a unit of IAC/Interactive (IACI), these people said. CNet rejected the proposal, these people said, contending that the consortium would effectively be taking over the co without paying a premium. CNet also said the consortium did not have standing to change the bylaws. Without commenting on the proposal, CNet said in a statement Sunday that under its new management it had “made significant strategic, financial, personnel and operational progress.” It said the company had disposed of underperforming assets, made strategic acquisitions and recruited new managers.
05:34 NAPS Napster format shift would enable more players – WSJ (1.99 )

The Wall Street Journal reports Napster (NAPS) was to announce today that it will sell all its downloads without the software that limits how buyers can use them. Chief Executive Chris Gorog said the shift to MP3 files that lack digital-rights-management software will take place sometime from April to June, although he acknowledged that the co has yet to finalize agreements with at least some of the four major music companies. One of them, Sony (SNE) and Bertelsmann AG’s Sony BMG Music Entertainment, has yet to say publicly that it will sell its music as MP3s, but it is expected to soon. None of the music companies said it had a completed MP3 deal with Napster.
05:30 MSFT Microsoft lands deals with movie, TV titans – WSJ (34.38 )

The Wall Street Journal reports Microsoft (MSFT) will get to use movies and TV programming from several large entertainment companies under new deals that may help it better compete with Apple’s (AAPL) iTunes online service and rivals such as Adobe Systems (ADBE). Microsoft said it reached agreements with NBC Universal, Walt Disney (DIS), Metro-Goldwyn-Mayer Studios Inc. and CBS’s (CBS) Showtime Networks to contribute entertainment content to the software maker’s Xbox Live and MSN online services. The agreements were disclosed last night by Microsoft Chairman Bill Gates during the opening of the Consumer Electronics Show. Mr. Gates also plans to say that Microsoft has sold 100 mln licenses for Windows Vista. Under the agreements, Disney, MGM and Showtime will contribute programming to Xbox Live. In addition, Microsoft said it signed a separate deal with NBC to manage a Web site for the 2008 Beijing Olympic Games. Microsoft’s MSN service will run an Olympics site that will have access to 3,000 hours of video coverage and allow Internet users to customize live and on-demand video from Beijing. “It’s going to let us illustrate why TV is going to be very different” over the Web, Mr. Gates said.
05:26 MCD McDonald’s takes on a weakened Starbucks – WSJ (57.05 )

The Wall Street Journal reports starting this year, McDonald’s (MCD) nearly 14,000 U.S. locations will install coffee bars with “baristas” serving cappuccinos, lattes, mochas and the Frappe, similar to Starbucks’ (SBUX) ice-blended Frappuccino. Internal documents from 2007 say the program, which also will add smoothies and bottled beverages, will add $1 bln to McDonald’s annual sales of $21.6 bln. McDonald’s executives say they aren’t launching espresso drinks to go after Starbucks, but instead to cater to consumers’ growing interest in specialty drinks. And although McDonald’s is encroaching on the business that Starbucks invented, analysts say McDonald’s may pose more of a threat to Dunkin’ Donuts, which has a more similar customer base. Analysts also point out that McDonald’s overall beverage expansion, which includes bottled drinks, is as much aimed at taking business from convenience stores and vending machines as it is from specialty cafes.
05:23 Morning News Summary: MCD/SBUX – MSFT – NAPS – CNET – NOK/SI – SNE – GS

WSJ: McDonald’s (MCD) takes on a weakened Starbucks (SBUX)… Microsoft (MSFT) lands deals with movie, TV titans… Napster (NAPS) format shift would enable more players. NY Times: Investors said to seek a takeover of Cnet (CNET). Reuters: Nokia Siemens (NOK/SI) wins $935 mln Saudi Arabia deal… Sony (SNE) says N. American PS3 holiday sales hit 1.2 mln… Goldman Sachs (GS) close to competing Northern Rock financing: Paper.
05:03 WIRES On The Wires -Update-

Insulet (PODD) and DexCom (DXCM) announce they have signed a development agreement to integrate DexCom’s continuous glucose monitoring technology into the wireless, handheld OmniPod System Personal Diabetes Manager… Magal Security Systems (MAGS) announces that it received a contract for a security project to protect a major seaport in Africa valued at approx $1.25 mln.
04:11 SNTS Santarus announces positive clinical results with ZEGERID capsules in controlling gastric acidity over 24 hours (2.53 )

Co announces positive results from a recently completed clinical trial with immediate-release ZEGERID Capsules 40 mg/1100 mg and two leading proton pump inhibitors, Protonix delayed-release tablets 40 mg and Prevacid delayed-release capsules 30 mg. The study evaluated the effect of morning PPI dosing on 24-hour gastric acid control in patients with symptoms of gastroesophageal reflux disease.
03:57 AUO AU Optronics reports Dec. 07 consolidated revenue of NT$48.94 bln, FY07 revenue of NT480.188 bln (17.34 )

Co announces December 2007 revenue with preliminary consolidated revenue of NT$48,940 mln and unconsolidated revenue of NT$48,828 mln; decreasing 8.4% and 8.5% respectively from the previous month. On a year-over-year comparison, December 2007 consolidated and unconsolidated revenues increased by 73.6% and 73.5% correspondingly.
03:55 WIRES On The Wires -Update-

First Industrial Realty Trust (FR) announces that it has formed a new joint venture, FirstCal Industrial Europe, LLC, with the California State Teachers’ Retirement System… LDK Solar (LDK) announces that it has entered into an agreement to acquire 33.5% of Jiangxi Sinoma New Material Co, a Xinyu-based crucible manufacturer, from Xinyu Chengdong Investment and Construction for a consideration of approx RMB 17 mln… BT (BT) selects Motorola (MOT) as the lead supplier of set-top boxes for its BT Vision digital TV service.
00:42 Salesforce.com and Concur Technologies mentioned negatively in Plugged In – Barron’s

Barron’s reports Netsuite (N) and SuccessFactors (SFSF) could rival the status of Salesforce.com (CRM) and Concur Technologies (CNQR) as the only two pure-play Saas stocks available. And there’s no shortage of hopefuls who’ve filed with the SEC to join Salesforce and Concur in the market. Among them: Varolii, whose data-center of recorded voices can automate the process of calling deadbeats to make collections for creditors. It claims six of the U.S.’s 10 largest banks as customers. CRM’s and CNQR’s days as exclusives in this particular genre of investment are numbered, a fact that is sure to make investors take a closer look at the rich premium baked into their shares, according to Barron’s.
00:40 PLD ProLogis mentioned positively in Barron’s (57.18 )

Barron’s reports one REIT likely to outperform this year is ProLogis (PLD), whose global business and diverse income stream could buffer it against any slowdown in the U.S. ProLogis offers the most compelling play in the REIT sector on continued robust global trade and growth in emerging markets such China and Japan. To keep up with demand, ProLogis is developing projects worldwide, emphasizing China, Japan and other percolating economies. The co’s project pipeline stood at $6.2 bln at the end of Q3, up 16% from December ‘06, and management raised its guidance for development starts for 2007 to between $3.8 bln and $4 bln, with 80% occurring outside the U.S. “Eventually, ProLogis development starts will plateau and asset growth will peak,” says Green Street analyst Cedrik Lachance. “However, this will occur far in the future. For the time being, betting that this high-quality team will continue to deliver is the right approach.” ProLogis “hasn’t looked this cheap in years relative to its peers,” declares shareholder James Kammert, citing stock-price multiples of future FFO and cash available for distribution, or CAD. Kammert, a portfolio manager at Transwestern Securities Management, estimates the shares are trading at 12.5x his 2008 FFO estimate of $4.60, and 13.5x his CAD view of $4.27. That CAD multiple is in line with other industrial names, though ProLogis has a rosier long-term growth rate of at least 10%, according to Kammert. The money manager expects ProLogis to generate a total return of 18% to 20% this year, suggesting a price of around 70.
00:39 Barron’s mentions 12 stocks at depressed levels that could see a lift in ‘08

Barron’s names 12 stocks that fared poorly in ‘07 but could see a bounce in ‘08. They include: AIG (AIG), Bear Stearns (BSC), Comcast (CMCSA), Comerica (CMA), Gannett (GCI), Kohl’s (KSS), Legg Mason (LM), Micron (MU), Southwest Air (LUV), Starbucks (SBUX), SunTrust Banks (STI) and Time Warner (TWX).
00:38 MRVC MRV Communications mentioned positively in The Trader – Barron’s (2.11 )

Barron’s reports MRV Communications (MRVC) plans to take public in 2008 its optical-equipment business, which it calls Source Photonics. Financial details of the proposed $130 mln IPO aren’t yet finalized, but it’s a tangible sign MRV “finally is going to force the street to value the separate entities at their respective multiples, which we believe will unlock tremendous value,” says Leo Saraceno, director of North American equities at Sun Life Financial, which has accumulated nearly 10 mln MRV shares. According to the prospectus, Source Photonics will combine MRV’s optical- equipment business with a recently-acquired co called Fiberxon. This will expand the unit’s technology platform and allow it to tap Fiberxon’s cheaper China-based manufacturing facilities. Revenue for Source Photonics is expected to grow 25% to about $225 mln this year. Applying a multiple of 1.5x 2008 sales would value it at $338 mln, or $2.11 for each MRV share, Saraceno argues. He believes the core network-products unit might be worth another $230 mln (or twice its projected 2008 sales of $115 mln), while the third-party network-integration unit is good for $95 mln (0.5x 2008 sales of $190 mln). Add net cash and MRV, he says, should fetch $4.50 a share. If Saraceno’s optimistic estimate is correct, then the market currently values MRV’s non-optical business at next to nothing.
00:37 AB AllianceBernstein mentioned positively in Barron’s (74.51 )

Barron’s reports shares of AllianceBernstein (AB) trade at 13.5x forward earnings, below the multiples of T. Rowe Price (TROW) and BlackRock (BLK), which makes it seem like an attractive investment, particularly in light of its growing foreign business.
00:36 ‘Mad Money’ Recap: Lightning Round cont. – TheStreeet.com

Cramer was bearish on Parker Drilling (PKD), Western Refining (WNR), Valero Energy (VLO), NetSuite (N) and Dendreon (DNDN).
00:35 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Halliburton (HAL), Schlumberger (SLB), Transocean (RIG), Oceaneering International (OII), FMC Technologies (FTI), McDonald’s (MCD), Yamana Gold (AUY), Barrick Gold (ABX), VF Corp. (VFC), Monsanto (MON) and Core Labs (CLB).
00:34 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Friday’s edition, Jim says that it may be wrong to conclude Darden Restaurants (DRI) is too cheap despite its 2.7% yield. He claims shares have no reason to head higher and that it is making “the painful transition from being a growth stock to being a value stock” after its recent earnings miss.
00:32 WIRES On The Wires

Systemax (SYX) announces it has entered into a definitive agreement to acquire selected assets and retail stores of CompUSA for approx $30 mln. Under the agreement, Systemax will purchase the CompUSA brand, trademarks and e-commerce business, and as many as 16 CompUSA retail outlets… 3M (MMM) and Himax Technologies (HIMX) announce a strategic alliance to commercialize LCOS mobile projectors.
00:26 CELG Celgene announces 2008 financial outlook and reaffirms FY07 EPS guidance; sees FY08 EPS in-line with consensus and revenue below consensus (49.65 )

Co issues in-line guidance for FY07 (Dec), sees EPS of $1.05 vs. $1.05 First Call consensus. Co issues mixed guidance for FY08 (Dec), sees EPS of $1.45-1.55 vs. $1.55 consensus; sees FY08 (Dec) revs of $1.8 bln vs. $2.04 bln consensus. REVLIMID revenue in ‘08 is expected to increase more than 60% to approx $1.25 bln in global sales. Furthermore, co announces total revenue for 2007 increased 50% y/y to approx $1.4 bln (unaudited), REVLIMID net product sales in ‘07 increased more than 140% y/y to $770-775 mln (unaudited) and Q407 REVLIMID net product sales in ‘07 increased more than 95% y/y to $240-245 mln (unaudited).