Data Feed

08:30 ECONX Core CPI m/m +0.2% vs +0.2% consensus

08:30 RRGB sees Q4 revs of $183.7 mln vs $187.6 mln consensus

08:30 ECONX CPI m/m +0.3% vs +0.2% consensus

08:30 ECONX CPI y/y +4.1% vs +4.1% consensus

08:30 ECONX Core CPI y/y +2.4% vs +2.4% consensus

08:30 CM CIBC downgraded to Hold from Buy at Citigroup (68.75 )

08:29 ZQK Quiksilver: Soft holiday sales and weakness in Rossignol leads to lower Q1 guidance - Caris (7.43 )

Caris notes ZQK lowered its 1Q08 outlook due to worse than expected reorders of winter equipment and softness in the apparel business during the holidays. Firm is cutting their 1Q08 EPS est to ($0.10) from ($0.01) given the expectation that both sales and margins are under pressure. Firm’s new 2008 EPS est is $0.61, down from their prior est of $0.70. Firm believes mgmt has recommitted to selling the Rossignol brand; however, they acknowledge investor frustration with mgmt’s decisions regarding the hardgoods business. Firm cuts their tgt to $7 from $10.
08:29 BONDX Bond Watch: Better Bid

The market is benefiting from another night of positive global flows as equities slid owing in no small part to an earnings miss by Intel late yesterday. That initial catalyst has since morphed into a broad based desire for quality assets boosting treasuries prices just beyond their prior Mar 04 highs (corresponding to a 10-yr yield around 3.65% according to Bloomberg). The 2-10-yr yield spread flattened to 118.1 as curve trade continues to unwind some steepness ahead of inflation data. Bond prices in the EuroZone jumped on risk aversion (& permitted by inline inflation data) as did their Japan counterparts as the Nikkei was slammed. Treasuries have managed to squeak higher this week & inflation data thus far has played only a small part. Any uptick in today’s CPI would derail the week’s gains & potentially more if rate cut expectations get thrown for a loop. Net foreign purchases, while outdated, will be poured over for stats of flows into treasuries but is not likely to move prices. Equities will be grudgingly followed as further erosion there should prop up bonds. The dollar battled back on the euro overnight but is seeing some selling pressure as the open approaches while against the yen it remains lopsided in favor of the Asian currency. Spot gold is edging up to 889.45 (+1.35) while crude oil is off at 90.99 (-0.91) as the softness in global growth weighs on prices. Today has CPI (8:30, net foreign purchases (9), industrial production/capacity utilization (9:15) & the Fed’s Beige Book (14). The euro is at 1.4801 & the yen is at 106.3800 while the 10-yr is +05/32 yielding 3.656%.
08:29 ALL Allstate, Florida battle over rate request - WSJ (51.17 )

WSJ reports a clash between Florida insurance regulators and the co erupted in the battle over the co’s latest request for property-insurance rate increases of up to 42%, with regulators abruptly ending a hearing with co executives in Tallahassee. Regulators accused the co of failing to comply with a subpoena issued in Oct. In it, Florida Insurance Commissioner Kevin McCarty demanded documents detailing Allstate’s relationship to insurance trade groups, risk-modelers and ratings agencies as part of an inquiry into why insurance overhauls passed by the legislature last year, including the expansion of a taxpayer-backed state catastrophe fund, have failed to produce lower property-insurance rates for many homeowners. Mr. McCarty said the co faces the risk of fines, suspension or revocation of its license to sell policies in the state — possibly including automobile insurance — if it fails to comply. In the event of a suspension or revocation, the co would be unable to sell new policies but would have to service existing ones. Allstate is the state’s fourth-largest insurer of homes, with about 241,000 policies in force, said Edward Domansky, a spokesman for the commissioner, who added that Allstate hasn’t been writing new homeowner policies in the state for a while. As Allstate also insures about 1.7 mln automobiles in Florida, whatever action the regulator takes is likely to affect that business. An announcement of action against Allstate is expected today, said Tom Zutell, a spokesman for Mr. McCarty.
08:27 Brazil shows another strong month of growth in Brazil wireless - Pali Research

Pali Research notes priliminary wireless industry subscriber data from Brazil indicates a blow-out month of subscriber net additions in Dec 2007 and could lead to several hundred thousand upside to the Q4 subscriber ests of TIM Part (TSU), Vivo (VIV) and America Movil’s Claro (AMX). These ests are sometimes slightly revised when the final numbers are released. Monthly industry net additions of 4.303 mln increased 66% in 2007 and were 85% higher than firm’s latest public est. This follows the first two months of the quarter which were similarly strong.
08:25 Lax lending standards could end up fueling sudden acceleration in auto-loan delinquencies - WSJ

WSJ reports in the waning days of the housing-market bubble, lenders lowered their standards, and that made the downturn worse. There is growing evidence that standards also came down for auto loans, and rapidly rising default rates could be the next dilemma for the staggering financial sector. The amount of auto loans that were past-due or written off as a loss moved sharply higher in the last part of 2007, according to analysts… It is becoming clear that several auto lenders let lending standards slip substantially in 2006-07. This increased the chance that loans were made to borrowers who couldn’t really afford them — even at the outset. There is also some evidence that credit-card cos made the same mistake. “The problem of lax loan-underwriting standards was not just concentrated in the mortgage sector; it’s looking like it took place across the consumer-finance sector, from credit-card loans to auto loans to motorcycle loans,” says William Ryan, consumer-finance analyst at Portales Partners. The deterioration in credit quality appears to have accelerated in the last quarter of 2007… Certain classes of loans made in 2006-07 are reporting some of weakest early credit performances in recent memory… Lenders that appear to have let loan-underwriting standards slip include subprime auto-loan company ACF and HOG, which lends to people who want to buy its motorcycles.
08:23 MAT Mattel upgraded to Strong buy at Needham- tgt $26 (16.65 )

Needham upgrades MAT to Strong Buy from Hold with a $26 tgt saying they believe the current stock price more than adequately discounts a host of headwinds, including tightening consumer spending, rising costs and the hangover of last year’s product recalls.
08:23 SCANX Early pre-market gappers

Gapping up: BEAS +18.7%, NITE +11.8%, GRRF +7.9%, TIBX +6.7%, SSTI +4.7%, LOOK +4.5%, MGM +4.4%, LCRY +4.0%, DXD +3.3%, ERIC +2.6%, AZN +2.3%, WFC +1.9%, LLTC +1.8%, TTMI +1.3%, SPWR +1.2%… Gapping down: CPKI -17.7%, ABK -14.9%, ZQK -12.5%, INTC -12.3%, ASML -11.5%, SGMS -10.1%, STXS -9.6%, NVDA -6.8%, MBI -6.5%, GOLD -6.5%, THRX -6.4%, FFIV -5.5%, FUL -4.8%, CAMP -4.8%, STO -4.7%, BRCM -4.6%, LDK -4.3%, DELL -3.8%, RIO -3.4%, BHP -3.3%, RIMM -3.2%, QGEN -3.1%, MRVL -3.0%, MSFT -2.9%, RTP -2.8%, AMD -2.8%, AMAT -2.7%, CSCO -2.5%, AAPL -2.4%, QCOM -1.7%, ING -1.5%, NVS -1.3%.
08:23 CBEY Cbeyond Comms upgraded to Buy at Needham- tgt $43 (31.60 )

Needham upgrades CBEY to Buy from Hold with a $43 tgt saying they believe the recent 25% sell off in the stock has created a good opportunity to buy shares of this communications service provider.
08:23 FFIV F5 Networks: Stifel expects quarter to be in line with consensus; reducing 2008 ests (22.54 )

Stifel says their checks on FFIV’s Dec quarter have been mixed. Firm believes that the co was slightly stretched towards the end of the quarter. At best, most resellers met their expectations for the quarter. Firm believes that FFIV is benefiting from the fact that Citrix (NetScaler) is unable to ship a 10 Gbps box as yet. In addition, they believe that the Application Security Manager did particularly well in the quarter. Firm notes reseller pipelines seem to be fairly depleted going into the March quarter. Most resellers they spoke with had limited visibility into the March quarter. Firm is reducing their March 2008 and fiscal 2008 ests: For March 2008, firm’s new ests are $155 mln in revs and GAAP/pro forma EPS of $0.21/$0.34 down from $161 mln and $0.23/$0.37. For FY2008, firm’s new ests are $647 mln in revs and GAAP/pro-forma EPS of $0.92/$1.46 down from $671 mln and $0.97/$1.53.
08:21 LME Steel derivative contract gains traction - FT

FT reports the shadowy world of steel price negotiations among the biggest producers and consumers is facing a shake-up as plans by the London Metal Exchange to launch a steel derivative contract gain increasing support among traders and banks. The LME is poised to launch a steel futures contract next month that could shift pricing-power away from producers to traders and financial investors. Leading producers, including MT, oppose the contract. But bankers said it was rapidly gaining support among steel physical traders, medium-sized Russian and Asian producers, and Wall Street banks, which are eager to obtain further exposure to a booming sector… Martin Abbot, LME chief executive, said the increase in price volatility justified the new contract. “Ten years ago there was not enough price risk in steel, not enough danger,” he said.
08:20 NITE Knight Trading: Color on qtr (12.52 ) -Update-

Keefe Bruyette notes that NITE “hit the ball out of the park” delivering an exceptionally strong revenue quarter in its core trading business benefiting from the market volatility. The firm expects the stock to move sharply higher on the open unless they get more cautious commentary from mgmt on the 9:00 am earnings call.
08:18 FSLR First Solar: Hearing FSLR upgraded to Buy at Pacific Growth (204.79 ) -Update-

08:17 PENN Penn Natl Gaming upgraded to Buy at Jefferies- tgt cut to $57 (50.20 )

Jefferies upgrades PENN to Buy from Hold and lowers their tgt to $57 from $67, based on shares trading as though the deal with Fortress/Centerbridge is substantially broken, currently at a level almost $17 below the negotiated take-out price.
08:17 AXP American Express-StanChart deal stumbles upon regulatory hurdle - Economic Times (42.77 )

Economic Times reports the Standard Chartered-American Express mega deal has stumbled upon a regulatory hurdle in India. Last Sept, Amex had announced that it’s selling its banking operations to StanChart. However, the American bank said it would retain the credit card business. Amex is looking at running the credit card business through a new non-banking finance co. While the transaction is underway in most mkts, the Reserve Bank of India is not in favour of an NBFC issuing cards. RBI is categorical that an NBFC can issue cards only if there is a tie-up with a bank which holds the credit risk. “It’s up to Amex to come up with a solution,” said an RBI official. Under the circumstances, Amex is looking at various options including selling its credit card business to StanChart in India. Under the $860-mln deal, StanChart will take over American Express Bank, a wholly-owned subsidiary of American Express, with presence in 47 countries, sans the travel and credit card business.
08:15 Baltic dry bulk index falls 5.7%, seventh straight decline - Bloomberg

Posts biggest drop since June 1989
08:15 ANSW Answers issues Q4 in line rev guidance; reaffirms Y08 guidance; announces private placement of convertible debt securities (6.69 )

Co issues in line guidance, sees Q4 revs of $2.95-2.98 mln vs $2.96 two analyst estimate; co sees adjusted EBITDA of $75k-150k. CO reaffirms Y08 guidance, sees Y08 revs of $28.0-30.0 mln. Co also announces that that it has entered into a securities purchase agreement, which allows the company to optionally sell $8.5 mln of 8% senior secured convertible notes due Dec 31, 2010 through a private placement. “We are pleased to announce that we expect our Q4 revenues and Adjusted EBITDA to be within our previously announced range. Additionally, direct ad sales and WikiAnswers continue to show traction, as we estimate direct ad sales will exceed $550 thousand and revenue from WikiAnswers will exceed $650 thousand for Q4.”
08:14 LLTC Linear Tech: Color on qtr (27.80 )

Morgan Keegan notes that LLTC reported Dec quarter results of $0.41 on $288.7 mln, which was in line with street expectations. They note that LLTC is an analog semiconductor company and is a peer to both Intersil (ISIL) and Semtech (SMTC). LLTC saw a positive book to bill and guided for a sequential increase of 3% at the midpoint for the March quarter which is in line with street expectations. They note LLTC mentioned that its industrial and communication end markets, 31% and 32% of revenues, respectively, will likely grow in the March quarter. The firm sees this as a positive for most analog semiconductor companies and LLTC’s results point to the defensive nature of these companies. They continue to like SMTC with 33% industrial exposure and another 15% in communication business… Caris notes there were no surprises as LLTC reported an in-line Dec quarter and provided in-line (though slightly below seasonal) March guidance. Firm’s checks had suggested that business was not falling off a cliff and results seem to bear this out. Gross margin remains best-in-class; firm’s longer term concern with LLTC is its seeming inability to grow earnings faster than rev.
08:13 WIRES On The Wires

SGX Pharmaceuticals (SGXP) announces that it has opened enrollment in two Phase I studies, with the first patient being treated on January 14, 2008… Blue Holdings (BLUE) announces that the co entered into two separate licensing agreements for the Antik Denim and Yanuk brands to further diversify the product mix into a broader lifestyle collection and to extend each brand’s reach… Comtech Telecommunications (CMTL) announces that its Maryland-based subsidiary, Comtech Mobile Datacom, received orders totaling $6.7 mln under its Movement Tracking System, or MTS contract, with the U.S. Army… Ashworth (ASHW) announces the acquisition of the Sun Ice and Sunice trademarks from Fletcher Leisure Group.
08:11 INTC Intel tgt cut to $29 at Stifel (22.69 ) -Update-

Stifel cuts their tgt on INTC to $29 from $33 as NAND pricing drives miss, not a computing issue. However, firm notes that INTC was adamant that 4Q results and softer than expected guidance was not the result of deterioration in computing fundamentals.
08:11 ANSW sees Q4 revs of $2.95-2.98 mln vs $2.96 two analyst estimate

08:09 CBR Ciber initiated with a Hold at Stifel (5.21 )

Stifel initiates CBR with a Hold saying they believe CIBER faces a number of industry and company-specific headwinds in the near term that could weigh on the shares. These include: macro slowdown that could impact demand for commercial IT services (74% of total CIBER revenue, 45% in the U.S.), unclear prospects for improving sub-par margins and returns, lack of competitive offshore capability, likely imminent debt refinancing at higher rate, track record of execution issues, and project run-off and potential $9 mln account receivable exposure.
08:07 LOGI Logitech Intl SA: 3Q08 earnings preview - Kaufman (30.10 )

Kaufman notes LOGI reports 3Q08 results today after the close. Overall, firm believes LOGI will maintain its history of double-digit rev and EPS growth as the key secular trends driving its business are evident in all regions of the world (although at different stages of deployment or adoption) and give LOGI a diversified global opportunity that reduces its dependency upon spending within any particular geographical region. Firm’s rev est for its fiscal third quarter is $785 mln. They expect growth will be driven by keyboards (30% growth), audio (28%) and remote controls (45%).
08:06 JAVA Sun Microsystems issues Q2 guidance; co to acquire MySQL, deal is expected to be accretive to FY10 (14.98 )

Co issues Q2 guidance, sees Q2 GAAP EPS of $0.28-0.32, may not compare to $0.29 consensus; co reports revs of approx $3.60 bln vs $3.58 bln consensus. Co reports Q2 net bookings up 7% yr/yr to approx $3.85 bln; co reports total gross margins of approx 48%. Co announces it has entered into a definitive agreement to acquire MySQL AB for approx $1 bln in total consideration, deal is expected to be accretive to FY10. CEO says, “Our preliminary results for the second quarter reflect solid execution and continued operational progress. The future is even brighter today as evidenced by our agreement to acquire MySQL, one of the fastest growing players in the $15 billion database market and a key component of many of the Web’s premier properties such as Facebook, Wikipedia, China Mobile and Baidu. As the market for open source databases continues its spectacular growth, we look forward to this acquisition directly contributing to Sun’s growth as the platform of choice for the Web economy.”
08:06 WFC Wells Fargo reports EPS in-line, beats on revs; reports Q4 charge-offs of $1.2 bln (26.49 )

Reports Q4 (Dec) earnings of $0.41 per share, in-line with the First Call consensus of $0.41; revenues rose 8.4% year/year to $10.21 bln vs the $10.08 bln consensus. WFC reports fourth quarter 2007 net charge-offs of $1.2 bln. Co said, “While we were not immune to the unexpectedly sharp and rapid downturn in housing, and our earnings were reduced in the fourth quarter by the $1.4 billion credit reserve build, primarily for home equity losses, we largely avoided the problems and costly asset write-downs many large financial institutions incurred. We maintained one of the highest return on equity ratios among large bank holding companies, at 17.1 percent, as well as one of the strongest capital positions in the industry for 2007. With our strong capital position, the challenges facing the industry and the significant upward re-pricing of asset spreads, we are finding significantly more opportunities now for acquisitions, portfolio purchases, and attractive loan and asset purchases than we have seen in the past five years.”
08:04 CPKI California Pizza: Keybanc believes challenges related to the consumer in many of CPKI’s core markets will weigh on comp store sales over the coming months (12.27 )

Keybanc notes that while they continue to view CPKI as a high quality restaurant co with considerable growth potential looking out over the next three to five years, they believe that challenges related to the consumer in many of CPKI’s core markets will weigh on comp store sales over the coming months. Accordingly, firm is significantly reducing their FY08 est by $0.36 from $0.90 to $0.54, which is on the low end of mgmt’s guidance.
08:03 SPWR Sunpower signs 2500 MW of polysilicon agreements (98.12 )

Co announces it has signed two polysilicon agreements to be supplied by a new polysilicon plant located in Saudi Arabia. The two agreements will support in aggregate 2500 megawatts of solar cell production. The co signed a polysilicon purchase agreement with NorSun AS and another with NorSun and its partners who are forming a joint venture company to construct a new polysilicon plant in Saudi Arabia. Each agreement anticipates polysilicon delivery to begin in 2010 and extend through 2019.
08:02 VCGH VCG Holding says termination of Southern Acquisition does not impact eps guidance; reaffirms outlook (10.59 )

Co says that they believe there was some confusion regarding yesterday’s press release. “During our third-quarter earnings call on November 19, 2007, and in a subsequent press release on November 29, 2007 we detailed the 2008 run rate and gave guidance for the 2008 and 2009 earnings per share that the Company expects to earn a minimum of $0.86-$0.92 (consensus is $0.86) and $1.15-$1.25, respectively. When that guidance was provided, we did not include the Southern Clubs in our projections. As a result, the formal termination of the Southern Clubs acquisition does not in any way change our previously provided guidance.”
08:02 ACM Aecom Tech announces two U.S. Department of Defense contracts totaling up to $270.9 mln (24.86 )

Co announces that it has been awarded two new contracts with a potential value of up to $270.9 mln by the U.S. Department of Defense for maintenance support services. The first of the two new support services contracts is for up to $208 mln for a two-year contract term that began on January 1. The second support services contract is for up to $62.9 mln for a one-year contract term that began on January 7.
08:01 JAVA sees GAAP EPS of $0.28-0.32 vs $0.29 consensus

08:01 WFC reports fourth quarter 2007 net charge-offs of $1.2 bln

08:01 ABK AMBAC Fincl announces plan to strengthen its capital base, cuts dividend & announces interim CEO; co expects to report operating EPS of -$5.80 for Q4 (21.14 )

Co announced that its Board of Directors has approved a plan to strengthen its capital base through the issuance of at least $1 bln of equity and equity-linked securities. This plan may also include additional capital from reinsurance or issuance of debt securities. ABK said that it is committed to maintaining its triple-A financial strength. By raising at least $1 bln in capital, ABK is expected to meet or exceed Fitch Ratings’ current triple-A capital requirements for the co. The co noted that its existing capital position currently meets or exceeds the triple-A capital requirements of both S&P and Moody’s. As part of its capital initiative, Ambac also said that it will reduce the quarterly dividend on its common stock from $0.21 per share to $0.07 per share… Ambac’s Board of Directors announced today that it has named Michael A. Callen as Chairman and Interim Chief Executive Officer. He succeeds Robert J. Genader, who will retire from the Company effective today…. The co also announced the results of its fourth quarter fair value review of its outstanding credit derivative contracts. Ambac’s estimate of the fair value or “mark-to-market” adjustment for its credit derivative portfolio for the quarter ended December 31, 2007 amounted to an estimated loss of $5.4 bln, pre-tax, $3.5 bln, after tax. Ambac also expects to report a loss provision amounting to approximately $143 mln, pre-tax. The loss provision relates primarily to underperforming home equity line of credit and closed-end second lien RMBS securitizations. As a result of the aforementioned losses, Ambac expects to report a net loss per share of up to $32.83 for the fourth quarter ended December 31, 2007. ABK expects to report operating losses per share of up to $5.80 for the Q4 primarily as a result of the aforementioned losses on CDOs and home equity line of credit transactions. In addition, book value per share is expected to be approximately $21.00 per share at December 31, 2007.
08:01 CROX Crocs announces Russ Hammer has been named CFO (27.60 )

Co announces that Peter Case, currently Chief Financial Officer, has been appointed to the newly created position of Senior Vice President, Retail Division. The co also announced that Russ Hammer has been named CFO, Senior Vice President-Finance and Treasurer. Both appointments are effective immediately.
08:01 DIVX DivX announces licensing agreement with AMD to allow support of DivX Video with AMD Xilleon processors (13.43 )

Co announces a licensing agreement with semiconductor supplier AMD (AMD). This agreement will allow AMD to include DivX video technology with specific AMD Xilleon processors to power a broad range of next-generation digital TVs worldwide. The two companies will work together to achieve DivX Certification for specific AMD Xilleon processors.
08:00 JAVA sees Q2 revs of $3.60 bln vs $3.58 mln consensus

08:00 TEVA Teva Pharm and UCB announce U.S. respiratory collaboration agreement, financial terms of the agreement were not disclosed (46.70 )

TEVA) and U.C.B. (Euronext:UCB) announce an agreement to co-commercialize Teva’s U.S. respiratory medicines. The initial product to be jointly promoted in the U.S. is Teva’s ProAir HFA (albuterol sulfate) Inhalation Aerosol. Additionally, the agreement will provide U.C.B. future joint promotion opportunities with other products in development by Teva Specialty Pharmaceuticals. Financial terms of the agreement were not disclosed.
08:00 BEAS BEA Systems resumes trading…jumps to $18.50 (15.58 +0.09) -Update-

08:00 WFC prelim $0.41 vs $0.41 First Call consensus; revs $10.2 bln vs $10.08 bln First Call consensus

08:00 S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -23.0.

Futures point to a negative start, but are off their worst levels. A disappointing earnings report from Intel (INTC) is weighing on the market. Intel issued first quarter earnings guidance that was below the consensus estimate, which is helping fuel concerns of a broader economic slowdown. JPMorgan’s (JPM) earnings report helped give futures a slight boost. JPMorgan missed its earnings expectations, but its write-down was relatively modest, which helped send its shares higher in pre-market trading. The futures market pared some more of its losses on news that BEA Systems (BEAS) is going to be acquired by Oracle (ORCL) for $19.375 per share.
07:58 INTC Intel: Core PC demand positive for ANAD, SMTC and ISIL - Morgan Keegan (22.69 ) -Update-

Morgan Keegan comments on INTC earnings, noting desktop, notebook and server demand seem fine, while Flash memory prices are in a free fall and primarily drove the miss. With core PC demand looking solid, firm sees this as a positive for ANAD, SMTC and ISIL. (Also see 7:19 Color on Quarter comment for further details on INTC earnings)
07:54 PFE Pfizer confirms it is part of EU pharm sector inquiry - DJ (23.59 )

DJ reports the co confirmed it was one of the drugmakers approached by the European Commission as part of a wider inquiry into competition practices within the pharmaceutical industry. The world’s largest pharmaceutical company said in a statement that it has received a visit from commission officials.
07:53 ASCA Ameristar Casinos: Reducing ests on soft Dec - Brean Murray (21.00 )

Brean Murray is reducing their 4Q07 operating EPS est $0.04 to $0.18 based on soft Dec results through most of the Midwest. Going forward, they remain concerned about new competition in two of Ameristar’s important markets; East Chicago and St. Louis. Although weather issues plagued the Midwest during Dec, the lack of growth in St. Louis despite the addition of a sixth riverboat from Pinnacle Entertainment does not bode well for the market in 2008. In addition, the 20% gaming rev declines in East Chicago during two of the past three months since ASCA’s acquisition in mid- Sept provides additional risk to their 2008 forecasts, despite what appeared to be conservative guidance from ASCA on its 3Q07 call.
07:52 PRICE Filings, Offerings, Pricings and IPOs

Filings: Theravance (THRX) files for a $150 mln convertible notes offering… Callon Petroleum (CPE) files for a $400 mln mixed shelf offering… TTM Tech (TTMI) files for a $200 mln mixed shelf offering… Answers (ANSW) files for a 14.94 mln share common stock offering… Biodel (BIOD) files for a 3.81 mln share common stock offering; 3.26 mln by the co and 550k by selling shareholders.
07:50 STP Suntech Power: Solar sell-off creates selected opportunities, favorite name remains STP - Jefferies (59.44 ) -Update-

Jefferies views the ongoing sell-off in solar names as an opportunity to purchase select solar names at more reasonable multiples. Their favorite name in the group remains STP, which now trades at approximately 18x their 2009 EPS estimate of $3.28, while they expect EPS growth rates of closer to 50% over the next few years. They think STP could potentially absorb 15-20% price reductions in 2009 while maintaining current margins. In 2008, they see the opportunity for companies with difficult polysilicon supply relationships, such as China Sunergy (CSUN), to disappoint by missing growth projections.
07:50 EDU New Oriental Education & Technology upgraded to Buy from Neutral at Piper Jaffray (63.23 ) -Update-

07:50 SunTrust lowering 2008 ests on ZZ and TPX

SunTrust is lowering their 2008 estimate for ZZ to $0.70 from $0.93 and TPX to $2.01 from $2.16 based on the following points: Industry results year to date for 2007 point toward a roughly 5% gain in dollars and 2% in units. While not bad historically, results from many producers point toward discounting or lower price point mix shift driving these gains at the expense of gross margins, primarily at innerspring producers, as declining results have been registered. Firm believes 2008 will be a flat to modestly down in units coupled with modest dollar gains. The growth of the $1,000+ price point has been astounding with a roughly 10% CAGR in units since 2000. Firm believes the continued decline in economic growth and recent earnings warnings from higher-end retail paint a bleaker growth picture. The industry has instituted some price increases of late to help offset some recent inflation but they believe more will be needed in 2008.
07:49 Romney wins Michigan primary - WSJ

WSJ reports native son Mitt Romney won Michigan’s Republican presidential primary, keeping his candidacy alive but leaving his party’s nomination race more chaotic. John McCain finished second followed by Mike Huckabee. Republicans still have no apparent front-runner, and no contender has a clear path to the nomination. With Mr. Romney’s victory yesterday, the year’s first three important state contests each have a different Republican winner, meaning none of the men gains much momentum.
07:48 C Citigroup shares are “cheap”, Punk Ziegel’s Bove says- Bloomberg (26.94 )

07:47 GSIC GSI Commerce: Lazard believes new $75 mln credit line indicates acquisitions may be under consideration (15.97 )

Lazard believes the co’s new $75 mln credit line indicates acquisitions may be under consideration. Specifically, firm believes there could be opportunities to enhance the co’s marketing services and/or international businesses. Based on firm’s industry checks and ecommerce spending data, they expect GSIC to report 4Q results generally in-line with the guidance range. While a few partners faced headwinds in the quarter, firm notes that a diversified model with >80 partners and multiple product categories provides some insulation from partner-specific issues. Firm cuts tgt to $27 from $30
07:45 IBN ICICI Bank tgt raised to $87 from $62 at Jefferies (66.03 )

Jefferies raises their tgt on IBN to $87 from $62 saying they maintain their positive outlook on India’s largest and most aggressive private bank. The firm says aggressive U.S. Fed rate cuts ahead, as well as favorable local market liquidity conditions and equity market buoyancy, should help unlock value in IBN’s subsidiaries.
07:44 Sony Ericsson’s net drops 17% - WSJ

WSJ reports Sony Ericsson posted a 17% drop in fourth-quarter net profit due to higher operating costs as it expanded its handset portfolio to also target emerging mkts. Sony Ericsson, the mobile-phone joint venture between SNE and ERIC, saw net profit for the three months to Dec. 31 fall to 373 mln euros ($555 million) from 447 mln euros in the year-earlier period. Revenue for the world’s fourth-largest phone maker remained relatively flat at 3.77 bln euros from 3.78 bln euros the previous year. Pretax profit also stayed flat at 501 mln euros year-to-year. Although it said the number of shipped units had climbed to around 18% in the quarter, compared with the same period in 2007, operating costs increased. “Investments are being made in both research and development and brand building, to deepen the portfolio and strengthen Sony Ericsson’s presence in new and developing markets around the world,” the company’s new President Hideki Komiyama, who joined on Nov. 1, said.
07:44 FDRY Foundry Ntwks tgt cut to $18 from $25 at Jefferies (14.44 )

Jefferies tgt cut to $18 from $25 considering the current concerns with respect to the US economic slowdown, they are revisiting the fundamentals of the companies in the Enterprise Networking sector.
07:43 MGAM Multimedia Games: Mexico continues to grow in Dec, but recent gaming trends likley to have impact on 1Q08 EPS - Brean Murray (7.03 )

Brean Murray notes the gaming machine count continues to expand in Mexico. However, similar to trends throughout the Midwest, ice storms in Oklahoma during Dec likely impacted 1Q08. Accordingly, firm is reducing their 1Q08 and FY08 EPS ests $0.03 to ($0.02) and $0.31, respectively. MGAM has always been a relatively cheap stock; however, there are several catalysts over the next three quarters that firm believes should drive earnings growth and the valuation to higher levels. Potential catalysts include: 1) reacceleration of Class III placements in Oklahoma, 2) sale of Class III games with current and previous customers outside of Oklahoma, 3) placement of games with new customers in Mexico, and 4) generation of significant free cash flow.
07:41 CLX Clorox upgraded to Outperform from Market Perform at BMO Capital- tgt $74 (61.48 )

07:41 ENTR Entropic Comms initiated with a Strong Buy at JMP (5.05 ) -Update-

07:40 LCBM LifeCore Biomed downgraded to Market Perform from Outperform at JMP (16.76 )

07:39 EDU New Oriental Education & Technology: Brean Murray believes concerns on margins overdone; buy on weakness (63.23 )

Brean Murray notes EDU reported modest 2QFY08 rev upside and provided typically conservative 3QFY08 rev guidance. Yet the stock tumbled over 20% on concerns of potential margin erosion. Firm believes the opex run-up in the past few quarters was largely related to the co’s aggressive footprint build-out plan in FY08, which is unlikely to continue at the current pace. Firm also believes such a build-out should provide a solid platform for the co to expand into high-growth areas in FY09 and beyond, and realize significant operating leverage along the way. While near-term margin headwinds exist, firm’s long-term view on the stock is unchanged. They believe the sell-off provides an attractive entry point for long-term investors.
07:39 SGMS Scientific Games downgraded to Underweight from Overweight at Morgan Stanley (28.15 )

07:37 LFC China Life Insurance says approached by U.S. financial companies - Reuters (67.52 )

Reuters reports several U.S. financial cos have inquired whether the co would like to invest in them, Wan Feng, the president of the nation’s biggest insurer, said. Speaking to reporters on the sidelines of an industry conference, Wan was not specific. “There have been many who have approached us in recent days, but we’ll select the most suitable,” Wan said. He was responding to a question about China Life’s plans to venture overseas and about the need of some U.S. banks to replenish capital wiped out by mortgage losses. “As for going out (from China), we will think proactively but will be prudent in our selection,” he said. Wan said China Life’s business was strong last year. “I can say the 2007 performance is much better than expected,” he said. Premiums this year would grow at the same rate as in 2007, he added. “2008 will certainly continue the development momentum we have seen in 2007, and if the macro-environment remains as it is, the business growth rate will be about the same,” he said.
07:34 NITE Knight Trading releases December 2007 volume statistics; Average daily dollar value traded in Dec 2007 was $15.35 bln (12.52 -0.46) -Update-

Cor releases volume statistics for the month of December 2007. Average daily dollar value traded in Dec 2007 was $15.35 biln, down approx 20.2% from $19.23 bln Nov 2007, and up approx 98.9% from $7.72 bln in Dec 2006. Average daily U.S. equity trade volume in Dec 2007 was 1.57 mln, down approx 12.2% from 1.79 mln in November 2007, and up approx 4.5% om 0.95 million in Dec 2006.
07:34 SLW Silver Wheaton upgraded to Sector Perform from Underperform at RBC (15.86 )

07:33 IMAX Imax announces that it generated $145 mln for Hollywood releases in 2007, 56% higher than the $93 mln that the IMAX theatre network grossed during 2006 (5.38 )

07:33 LCRY LeCroy beats by $0.04, beats on revs; reaffirms FY08 guidance (8.75 )

Reports Q2 (Dec) earnings of $0.20 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.16; revenues rose 6.6% year/year to $40.6 mln vs the $40.1 mln consensus. Co reaffirms guidance for FY08, sees FY08 revs of $155-165 mln vs. $162.40 mln consensus; reaffirms non-GAAP operating income guidance of $12-17 mln
07:33 CGX Consol. Graphics names Jon Biro Executive Vice President - Chief Financial and Accounting Officer (40.94 )

07:33 Financial stocks upgraded to Market Weight from Underweight at Bear Stearns

07:32 Friedman Billings believes other companies to benefit by eliminating the “Countrywide Effect” on deposit rates

Freidman Billings notes that they became quite encouraged when outlets began talking about a possible merger between BAC and CFC (this was clearly a catalyst to reduce the cost of deposits in the marketplace, and particularly CD funding, as BAC applies more disciplined deposit rates). As such, firm expects a material “public good” benefit from BAC’s acquisition of CFC. Of course, firm remains quite bearish on the industry, and in most cases, the higher incremental credit costs will totally swamp the margin benefit. Firm recommends investors buy UCBH on the thesis of normalizing CD costs. Other cos that stand to benefit are AF, and CATY.
07:32 MTU Mitsubishi Financial’s subprime losses $470 mln, sources say - Reuters (9.10 )

Reuters reports the bank likely lost as much as $470 mln on subprime investments last year, more than 10 times more than its previous estimate, sources said. Japan’s largest bank likely suffered subprime losses of 50 bln yen for the 12 months to Dec, up from the 4 bln yen it previously reported for the six months to Sept, according to executives with direct knowledge of the matter.
07:32 TASR TASER receives follow-on orders from law enforcement agencies (11.32 )

Co announces that it received two significant orders from law enforcement agencies. The first order received was from the Las Vegas Metropolitan Police Department in Las Vegas, NV, for 300 TASER X26 Electronic Control Devices and related accessories. The second order received was from several law enforcement agencies within a foreign country for a total of 200 TASER X26 ECDs and related accessories.
07:32 GOOG Google: Susquehanna says research suggests upside to their outlook (637.65 )

07:31 GFLS Greater Community Bancorp reports Q4 EPS of $0.23 vs ($0.17) in yr ago period (15.75 )

07:31 LCRY reaffirms FY08 revs $155-165 mln vs $162.40 mln First Call consensus

07:31 EPIX EPIX Pharma Announces Updated Results from Phase 2a Clinical Trial of PRX-03140 in Alzheimer’s Disease; improvement continues to be statistically significant

07:31 MERC Mercer Intl: Mercer Shareholders Committee announces that it has been established to unlock the value of common shares (7.43 )

The Mercer Shareholders Committee announces that it has been established today by shareholders of MERC. The mandate of the Committee will be to unlock the value of the Mercer’s common shares by requesting drastic corporate changes within Mercer, and to either have the company sold or create a joint venture with a strategic investor to realize the highest value for the shareholders. Based on published reports, several investment bankers believe that Mercer is worth between US$11.50 and US$13.50 a share. Mercer’s present management and Board of Directors have little or no investment in the company, and therefore no real incentive to achieve maximum shareholder value.
07:31 MATR Matria Healthcare tgt raises to $37 at FBR; announces pursuit of strategic alternatives (29.34 )

Friedman Billings raises theit tgt on MATR to $37 from $27 following its announcement hat it is in the late stages of negotiations relating to the pursuit of strategic initiatives that could include the sale of the firm. The company also cancelled its previously scheduled January 17 guidance call, implying that resolution on the matter may be imminent.
07:31 LCRY prelim $0.20, ex items vs $0.16 First Call consensus; revs $40.6 mln vs $40.09 mln First Call consensus

07:30 MGM MGM Mirage, Dubai World boost tender offer - AP (66.47 ) -Update-

AP reports after the stock mkt sent its shares plummeting on concerns that U.S. consumers are slowing their spending, MGM Mirage is increasing its tender offer for the co’s shares, saying it foresees positive results as foreign tourists flock to its casinos on the back of a cheaper U.S. dollar. MGM Mirage President Jim Murren said the co would announce Wednesday that it is increasing its joint tender offer with Dubai World for MGM Mirage shares by 50% to 15 mln and setting the price at $80, a 20% premium to Tuesday’s closing price. MGM Mirage directors decided on the revised tender offer at a board meeting Tuesday, Murren said. The co will release a preview of its fourth quarter earnings when it makes the offer, and it is expected to show positive results, despite the weakening economy negatively impacting its convention business and its U.S. casinos outside of Las Vegas, he said.
07:30 BEAS BEA Systems to be acquired by Oracle for $19.375/share (15.58 )

Oracle (ORCL) and BEAS announce they have entered into a definitive agreement under which Oracle will acquire all outstanding shares of BEAS for $19.375 per share in cash. The offer is valued at approximately $8.5 bln, or $7.2 bln net of BEA’s cash on hand of $1.3 bln. “We expect this deal to be accretive to Oracle’s earnings by at least 1-2 cents on a non-GAAP basis in its first full year after closing.” The Board of Directors of BEA Systems has unanimously approved the transaction. It is anticipated to close by mid-2008, subject to BEA stockholder approval, certain regulatory approvals and customary closing conditions. (BEAS is halted)
07:30 DSL Downey Fincl tgt cut to $20 at FBR from $40 as the housing market in California continues to deteriorate (23.48 )

07:29 Q Qwest upgraded to Buy from Hold at Soleil- based on valuation (5.52 )

07:28 MEE Massey Energy tgt raised to $29 at FBR (34.38 )

Friedman Billings raises their tgt on MEE to $29 from $22. First firm raised their 2008 ests based on: 1) partial credit for its expansion plan, 2) higher realizations based on slightly increased open positions and 3) an increase of their 2010 multiple by 0.5x to 4.5x; and 4) benefits to cost reduction plans. More importantly, on the negative side, firm expects MEE will lose about 5 MTs production from S404 permitting issues, negating most of its growth plans and will experience higher production costs, as there is a mix shift to higher mining techniques. Firm recommends investors use any runup in the stock to rotate into their Outperform rated names: CNX, ACI, FCL, and BTU that have significantly less S404 permitting risk in CAPP region.
07:27 TSN Tyson Foods initiated with an Underweight at Morgan Stanley (13.88 )

07:26 SFD Smithfield Foods initiated with an Underweight at Morgan Stanley (25.50 )

07:26 EXLS ExlService: IMB slashes outsourced work force; tgt lowered to $15 - FBR (18.69 )

Friedman Billings cuts their tgt on EXLS to $15 from $18, following IMB’s disclosure last night that it is cutting its outsourced staff, mostly in India, by 27%. The co noted that conditions have gotten significantly worse since Oct. IMB accounts for approximately 5% of revenue for EXLS; and, while it is not the only vendor, EXLS will likely experience a declining contribution from this client. Firm continues to be cautious on the shares of EXLS, given its exposure to IMB, at 5% of revenue, exposure to the BFSI segment in general, at 70% of revenue, growth that is not broad-based, FX headwinds, and a rising tax rate in India in CY09.
07:26 TNE Tele Norte Leste: Brazil’s Oi signs 3G deals with Nokia, Siemens and Huawei; Contract reportedly worth $568 mln - DJ (22.96 )

DJ reports the co, signed contracts with NOK, SI and Huawei Technology for the installation of third generation wireless infrastructure across this continental-sized country, a company spokeswoman confirmed Wednesday. The deals to install networks across 18 states are worth 1 bln Brazilian reals ($568 mln), according to the local business daily Valor Economico. Over the next year, Oi plans to install 3G services in 53 municipal areas, as well as establish a wireless and 3G network in Sao Paulo.
07:25 DO Diamond Offshore: FBR expects next special dividend to be $1.50 (122.00 )

Friedman Billings notes DO’s board should meet in late Jan, as it has for the past two years, to declare the next special dividend. Given the building cash position, lack of attractive newbuild options, and the majority owner’s/mgmt’s disciplined capital deployment, firm expects the next special dividend to be at least $1.50, or $0.25 greater than the previous special dividend. They believe the current fair valuation is $123, based on a 6.7% yield and $8.25 N.T.M. dividend. Firm raises their tgt from $174 to $182, as their dividends roll forward a quarter.
07:24 ENTR Entropic Comms initiated with a Buy at ThinkEquity- tgt $10 (5.05 )

ThinkEquity initiates ENTR with a Buy and a $10 tgt saying ENTR is the inventor of and dominant market leader in the MoCA standard for networking on the coaxial (cable TV) cable in homes and apartment buildings. Most of the current revenue comes (indirectly) from Verizon (VZ), but the firm expects the cable TV and satellite TV operators to ramp before the end of 2008. The firm believes the main risk is competition from alternative forms of wired home networking, such as powerline and HPNA.
07:22 GTS Triple-S Management initiated with an Outperform at Oppenheimer- tgt $22 (18.98 )

Oppenheimer initiates GTS with an Outperform and a $22 tgt saying Medicare accounts for nearly all of Triple-S’s health plan profitability and, with no rate reductions likely until at least 2010, they think Triple-S will show significant enrollment growth over the next few years, particularly given the recent issues at the largest Medicare plan on the island.
07:21 INTC Intel: Analysts expect macro economic issues to weigh on INTC (22.69 )

Credit Suisse notes INTC reported 4Q08 essentially in-line. A modest $100 mln rev shortfall was a function of weaker than expected NAND pricing (firm estimate down 20% q/q), while CPU rev tracked in-line with expectations. Gross margins of 58.1% were better than guidance of 57% and their estimate of 58%, but perhaps shy of some higher street expectations. Co guided Q1 revs to a range of $9.4 bln to $10.0 bln, the midpoint of down 9.4% was below street consensus of down 7.4% and below normal seasonality of down 7-8%. Mgmt indicated the shortfall was not due to the CPU business which is tracking to seasonal trends but rather expectations for continued pricing weakness in the flash memory market - firm suspects macro economic concerns impacted guidance and the mgmt team has baked in some conservatism as a $290 mln shortfall is difficult to find from the other “rounding errors.” … Citi notes long-term, firm continues to see upside to INTC. Despite the shortfall to revs, INTC did provide upside to consensus margins. The net impact of this is that firm has reduced their EPS est by 15%, 7% below pre-results consensus. Based on this $1.40 est, firm sees upside to $27… Lehman notes that while positives include solid GMs where CY08 guidance appears conservative and lower inventory, investors likely to focus on subdued 1Q08 sales guidance and potential for lower notebook ASPs (AMD comp, emerging mkts) and macro weakness to impact LT outlook and double-digit PC growth forecast. Firm attributes the softness in revs to: 1) weaker-thanexpected NAND ASP outlook, where they est INTC revs were around $50- 80 mln lower than expectations, 2) lower CPU shipments underpinned by seasonality, 3) select 65nm chipset offerings that will not qualify for sale in the first quarter, 4) a secular mix-shift to lower-end emerging market PCs, and 5) AMD`s competitiveness in the low-cost PC segment across notebooks, desktops, and servers… Robert Baird notes their checks indicate a recent deterioration in notebook component demand over the past few weeks, following a slowdown in 4Q. Because of 32nm startup costs late this year, firm doesn’t expect gross margin expansion to resume until 2009. Firm cuts their tgt to $23 from $30.
07:21 ALVR Alvarion: Analyst day reinforces concerns about fixed wireless business model and timeframe for mobile deployments - Merriman (8.22 )

Merriman notes customer testimonials at yesterday’s Analyst Day in New York underscored ALVR’s leading position in fixed broadband wireless applications serving rural and developing markets. However, firm believes that market is underestimating the challenges associated with the fixed WiMAX business model and would prefer to see material developments in mobile opportunities. Firm maintains their Neutral rating on ALVR shares given continued uncertainty surrounding the timing of these opportunities and the ever-present threat of larger rivals.
07:20 OVEN TurboChef: Another strong quarter expected; 2008 poised to deliever record sales and a profitable year - Merriman (12.55 )

Merriman believes that OVEN is positioned to close an outstanding year with strong Q4 results. Firm projects rev of $34.1 mln, an increase of 124%, and EPS of $0.07. This quarter would be the first profitable period since 1Q05. Dunkin Donuts, Starbucks and Subway remain the primary sales drivers. Firm believes smaller chain business continues to further diversify its customer base. They are estimating gross profit margins of 39.0%.
07:19 GAIA Gaiam profiled in New America section of IBD (23.17 )

IBD reports the co is tapping into a growing niche, dubbed the “lifestyles of health and sustainability” mkt. The so-called LOHAS movement includes upscale and environmentally conscious items such as hybrid cars and organic groceries. It also includes solar panels and home composting kits. It’s a growing niche. The Natural Marketing Institute says U.S. consumers spent $209 bln in 2005 on such goods. The institute thinks it will climb to $410 bln in 2010 and more than double again to $845 bln by 2015. Gaiam operates in a higher-end slice of the mkt. Analysts surveyed by Thomson Financial expect 33 cents in 2007 and 50 cents in 2008. The co is expanding into online communities. It’s building a subscription-based forum, though the co has said little publicly about how many paying members it has enrolled so far. It’s also growing overseas. Last year Gaiam bought a stake in Newmark Media, which stocks health and fitness products in bookstores, natural-food mkts and pharmacies. Gaiam says that’s another growth target area. This month, it’s starting an experimental stand-alone “store-within-a-store” of Gaiam health products, to be featured in Target’s fitness department.
07:18 TCBI Texas Capital downgraded to Sell from Neutral at Merrill (16.40 )

07:17 ZGEN Zymogenetics initiated with a Sell at Brean Murray- tgt $7 (12.52 )

Brean Murray initiates ZGEN with a Sell and a $7 tgt based on the co’s lead development program, Recothrom, a recombinant form of human thrombin. The firm questions the product’s outright approvability based on the clinical safety data generated to date, ZymoGenetics’ manufacturing capabilities, and the co’s claims to superior safety in regards to live-sourced thrombin. They believe the next significant, near-term catalyst for the stock is January 17, 2008, which is the PDUFA action date for Recothrom. They believe the FDA will issue ZymoGenetics a Complete Response Letter. In 3Q08, they expect top-line results will be announced from Recothrom’s Phase 3b trial, and believe the FDA will await these results before approving Recothrom in an already well-served market.
07:17 GGP Gen Growth Prop upgraded to Buy from Neutral at Merrill (31.91 )

07:14 COMV Comverge initiated with a Market Perform at JMP (25.54 )

07:13 ENOC EnerNOC initiated with an Outperform at JMP- tgt $50 (33.88 )

07:12 AZN AstraZeneca: Hearing upgraded to buy from neutral at tier 1 firm (44.10 )

07:12 China tells banks to hold yet more cash in reserve - Reuters

Reuters reports China raised the proportion of deposits that banks must hold in reserve for the eleventh time since the start of 2007, extending a long-running campaign to mop up excess cash in the banking system. The 0.5 percentage point increase in the reserve requirement ratio will take effect on January 25, the People’s Bank of China said. That takes the ratio for big banks to a record 15%. In contrast to many other central banks, the PBOC is grappling with how to keep a flood of liquidity that is entering the economy through its huge trade surplus from stoking inflation and causing the economy to overheat. The PBOC said the increase was aimed at slowing money and credit growth and at strengthening liquidity management.
07:12 SCHN Schnitzer Steel: Hearing downgraded to sell from neutral at tier 1 firm (55.49 )

07:10 AKS AK Steel: Hearing upgraded to neutral from sell at tier 1 firm (37.15 )

07:09 SVU Supervalu upgraded to Neutral from Sell at BofA- maintains their tgt $25, based on valuation (27.40 )

07:09 BSX Boston Scientific upgraded to Buy at BofA- tgt $15 (11.51 )

BofA upgrades BSX to Buy from Neutral with a $15 tgt based on valuation. The firm says they believe that a combination of restructuring, new product flow and valuation supports a more favorable risk/reward profile.
07:08 JPM JP Morgan Chase reports Q4 (Dec) results, beats on revs (39.17 )

Reports Q4 (Dec) earnings of $0.86 per share, may not be comparable to the First Call consensus of $0.92; revenues rose 7.4% year/year to $17.38 bln vs the $17.05 bln consensus. Co reports Markdowns of $1.3 billion (net of hedges) on subprime positions, including subprime CDOs. Commenting on 2007 full-year and fourth-quarter results, Jamie Dimon, Chairman and Chief Executive Officer, said, “I am pleased with our company’s record results for the year, despite our mixed performance in the fourth quarter. Our lower quarterly results were affected by the Investment Bank’s markdowns in subprime-related positions and weaker trading. In addition, our consumer home equity and subprime loan portfolios performed worse than we expected… It is gratifying that we were able to achieve record full-year results while still adding $2.3 billion to our credit reserves (which now total $10 billion); maintaining a strong 8.4% Tier 1 capital ratio; making important investments across the firm; and growing market share… We remain extremely cautious as we enter 2008. If the economy weakens substantially from here - for which, as a company, we need to be prepared - it will negatively affect business volumes and drive credit costs higher. However, we feel well-positioned given the investments and actions we have taken over the past few years to improve our businesses’ operating margins, create a stronger systems infrastructure and build a fortress balance sheet…”
07:08 PEP PepsiCo: Starbucks to carry Naked Juice (74.83 )

Naked Juice, a PEP co, announced a multi-year distribution agreement with the Starbucks Coffee (SBUX) to serve select Naked Juice 100 percent juices and juice smoothies at nearly 7,000 Starbucks company operated stores in the U.S. later this year.
07:08 CALLS Early Research Calls IV

Upgrades: BofA upgrades FMC (FMC 52.29) to Buy from Neutral and raises their tgt to $60 from $50, based on strong fundamental momentum in crop protection chemicals, pricing power in soda ash, which remains sold out, a resilient specialty chemicals franchise that sells to stable markets and a more attractive risk-reward profile… BofA upgrades Vertex Pharma (VRTX 22.73) to Buy from Neutral and raises their tgt to $34 from $34 saying after meeting with VRTX management and field checks, they have increased confidence that upcoming catalysts present significant upside to VRTX at these levels. The firm believes the imminent start of an EMEA/FDA approved telaprevir Ph III HCV trial and potentially positive PROVE 3 results in 2Q08 are under-appreciated… JP Morgan upgrades FormFactor (FORM 25.71) to Neutral from Underweight. Downgrades: Merrill downgrades Prosperity Bancshares (PRSP 25.43) to Sell from Neutral… Merrill downgrades Marshall & Ilsley (MI 23.60) to Sell from Neutral… Credit Suisse downgrades Petro-Canada (PCZ 51.7 to Neutral from Outperform. Miscellaneous: Credit Suisse initiates Triple-S Management Corp. (GTS 18.9 with an Outperform and a $24 tgt based on the significant margin expansion opportunity, strong brand and dominant local market share; opportunity to grow Medicare Advantage through growing member pool, market share gains, and Part D conversions… UBS initiates Triple-S Management Corp. (GTS 18.9 with a Neutral…
07:03 OBCI Ocean Bio-Chem, Inc. reports Q4 revs up 24% yr/yr to $4.9 mln (1.30 )

07:01 JAH Jarden says that rev and operating profits related to their winter sports business in Q4 were in line with their expectations (19.85 )

Co reports an update on its winter sports business. “…Revenue and operating profits related to our winter sports business in the fourth quarter were in line with our expectations. Based on our current outlook and initial performance for the first quarter of 2008, we anticipate a healthy finish to the 2007/2008 winter sports season and overall organic revenue growth in our Outdoor Solutions segment in the first quarter of 2008… In the same way that the poor 2006/2007 snow conditions created an overall reduction in 2007/2008 winter sports sales, we believe that the positive momentum in our business for the 2007/2008 season bodes well for the sell-in for the 2008/2009 season.”
07:01 ECONX MBA Mortgage Applications 28.4% vs 32.2% prior

07:01 JPM prelim $0.86 vs $0.92 First Call consensus; revs $18.27 bln vs $17.05 bln First Call consensus

07:00 MAPP MAP Pharma reaches agreement with FDA on Special Protocol Assessment for MAP0004 Phase 3 clinical trial in patients with migraine (13.99 )

Co announces that it has completed the special protocol assessment process with the FDA for the first Phase 3 clinical trial of its MAP0004 product candidate, and has reached agreement with the Agency on the design of the protocol. The study, if successful, could support the potential approval of MAP0004 as a treatment for migraine.
06:52 HZO MarineMax issues Q1, Y08 downside guidance (12.68 )

Co issues guidance for Q1 (Dec), sees EPS of ($0.35)-($0.3 vs. ($0.2 First Call consensus; sees Q1 (Dec) revs of approx $215 mln vs. $218.36 mln consensus; co sees Q1 same store sales approx -9%. Co issues downside guidance for FY08 (Sep), sees EPS of lower than previous guidance of $0.60-0.80 vs. $0.73 consensus. The co’s results were impacted by the ongoing economic pressures caused by challenged real estate and lending environment, as well as general economic concerns. CEO says, “While retail conditions in the marine industry have deteriorated further than we expected, available boat registration data through September 2007 shows that our long track record of market share gains has continued. This core belief of investing into our future by growing market share is expected to provide meaningful benefits when our industry recovers. We are disappointed with our financial results for the December quarter but are encouraged that our customers have not lessened their passion for boating as a great family recreation.”
06:50 HZO sees Q1 net loss per share of ($0.38-0.35) vs ($0.2 First Call consensus

06:50 CALLS Early Research Calls III

Upgrades: Citigroup upgrades Temple Inland (TIN 17.52) to Buy from Hold… Deutsche Bank upgrades VistaCare (VSTA 7.01) to Hold from Sell… Friedman Billings upgrades Roper Inds (ROP 50.87) to Outperform from Market Perform and maintains their $67 tgt saying they believe that growth in the U.S. economy will slow; however, those companies with noncyclical end markets, operational excellence, and solid balance sheets should perform well over the next year. The firm says ROP falls into all of these catagories… Lehman upgrades PNM Resources (PNM 18.99) to Overweight from Equal-weight. Downgrades: Bear Stearns downgrades European Insurance sector to Market Weight from Overweight. The firm downgrades ING Group (ING 37.75) to Underperform from Peer Perform. The firm also downgrades Prudential Plc (PUK 26.73) to Peer Perform from Outperform… Citigroup downgrades Consolidated Comm (CNSL 16.7 to Sell from Hold… Deutsche Bank downgrades Owens-Illinois (OI 45.57) to Hold from Buy… Morgan Stanley downgrades Novartis (NVS 56.63) to Underweight from Equal Weight… Morgan Stanley downgrades Sanofi Aventis (SNY 47.20) to Equal Weight from Overweight… Piper Jaffray downgrades Cabela’s (CAB 11.91) to Neutral from Buy. Miscellaneous: Citigroup initiates BB&T (BBT 27.32), TCF Financial (TCB 16.12), and Regions Financial (RF 20.34) with Holds… Lehman initiates Benchmark Electronics (BHE 15.8 with an Equal Weight… Lehman initiates Entropic Comm (ENTR 5.05) wtih an Overweight… RBC initiates EPIX Pharma (EPIX 3.57) with an Outperform and a $6 tgt… RBC initiates Xenoport (XNPT 59.7 with an Outperform and a $75 tgt… Thomas Weisel initiates Entropic Comm (ENTR 5.05) with a Market Weight… UBS initiates Danaher (DHR 79.83) with a Buy and a $95 tgt… UBS cuts their tgt on Intel (INTC 22.69) to $29 from $32.
06:34 THRM Thermage issues Y07 guidance (4.20 )

Co issues guidance for FY07 (Dec), sees EPS of $0.10-0.11, compared to previous guidance of $0.07-0.10, vs. $0.09 consensus; sees FY07 (Dec) revs of $63.0-63.2 mln, compared to previous guidance of $63 mln, vs. $63.00 mln consensus. Co sees Q4 gross margins to exceed 76%. CEO says, “During the fourth quarter, we generated strong sales of disposable tips, which helped our gross profit margins. Looking into 2008, we are experiencing good traction with our recently introduced ThermaCool STC and DC tips. With new products scheduled to be released later in this current quarter, including a tip that addresses cellulite, we believe 2008 will be another year of solid growth for Thermage.”
06:27 Europe shares drop as US worries hit banks, techs

European shares fell on Wednesday as growing fear of a U.S. recession hit banks, while tech stocks recoiled after a grim outlook from Intel and a disappointing update from Dutch group ASML. By 0914 GMT, the FTSEurofirst 300 index of top European shares was down 1.05% at 1,380.69 points, having earlier hit its lowest level since September 2006 at 1,376.35, and is now showing a loss of nearly 9% for the year… Around Europe, London’s FTSE 100 index fell 1.3%, while Frankfurt’s DAX dropped 1% and Paris’ CAC 40 lost 1.1%. (Reuters)
06:27 Asian stock markets plunge; Sensex ends down 380pts

Asian markets plunged Wednesday on growing speculation the U.S. economy -a vital export market- is sliding into a recession that could lead to a global slowdown. In Hong Kong, the benchmark Hang Seng index sank 5.4% -its biggest percentage drop since the Sept. 11, 2001, terrorist attacks- to 24,450.85. Tokyo’s Nikkei 225 index fell 3.4% to 13,504.51 points, its lowest in more than two years. Markets in Australia, China, India, South Korea, New Zealand and the Philippines also dropped sharply on uncertainty about the U.S. economic outlook and the full extent of the subprime mortgage crisis. …Mirroring the weak trend in global markets, the Sensex opened with a huge negative gap of 171 points at 20,080. Unabated selling saw the index drift deeper into red as the day progressed. The index tumbled to a low of 19,513 - down 738 points from the previous close - in late noon deals. Aggressive buying at lower levels saw the index stage a significant recovery, and finally settle with a loss of 383 points at 19,868. (Thomson, Business Standard)
06:23 CALLS Early Research Calls II

Upgrades: UBS upgrades Tellabs (TLAB 6.09) to Buy from Neutral… UBS upgrades Estee Lauder (EL 38.04) to Neutral from Sell… Lehman upgrades Diageo (DEO 78.75) to Overweight from Equal-weight… Lehman upgrades Kindred Healthcare (KND 24.01) to Overweight from Equal-weight… Morgan Stanley upgrades Intel (INTC 22.69) to Equal-weight from Underweight… Credit Suisse upgrades ACS (ACS 43.05) to Outperform from Neutral. Downgrades: Lehman downgrades Vodafone (VOD 35.53) to Equal-weight from Overweight… JP Morgan downgrades Deutsche Telekom (DT 22.46) to Underweight from Neutral… Jefferies downgrades F5 Networks (FFIV 22.54) to Hold from Buy and lowers their tgt to $26 from $50, as they believe market fundamentals are deteriorating and the outlook for Q108 remains uncertain, in their view… Jefferies downgrades Packeteer (PKTR 4.77) to Hold from Buy and lowers their tgt to $6 from $12, as they remain less optimistic on the co’s product ramp as key competitors have now established strong market positions.
06:18 S&P futures vs fair value: -12.2. Nasdaq futures vs fair value: -29.5.
06:16 European Markets

FTSE…5945.10…-80.50…-1.3%. DAX…7471.85…-94.53…-1.3%.
06:16 Asian Markets

Nikkei…13504.51…-468.12…-3.4%. Hang Seng…24450.85…-1386.93…-5.4%.
06:15 ASML ASML Holding beats Euro consensus by Euro 0.06; no order guidance given (27.56 )

Reports Q4 (Dec) earnings of EUR 0.37 per share, excluding net tax benefit from the settlement of several tax contingencies, Eur 0.06 better than the First Call consensus of EUR 0.31; revenues fell 8.9% year/year to EUR 972.9 mln vs the EUR 872.9 mln consensus. ASML expects to ship 50 systems in Q108 with an average selling price of EUR 18.9 mln for new systems and an average selling price for all systems of EUR 16.3 mln. Co expects a GPM in Q108 of between 40-41%. 2007. Co said, “Although independent market researchers still expect a double digit increase in demand for integrated circuit units in 2008, which should translate into lithography market expansion in 2008, we are awaiting confirmation of this potential growth through the exact level of Q1 and Q2 bookings.”
06:15 CALLS Early Research Calls I

Upgrades: Morgan Keegan upgrades ADC Telecommunications (ADCT 13.07) to Outperform from Market Perform, as they believe expectations remain conservative and think ADC stands to benefit from carrier upgrade activity… Friedman Billings upgrades Roper Industries (ROP 50.87) to Outperform from Market Perform and maintains their $67 tgt, based on valuation. Downgrades: Jefferies downgrades Medicis (MRX 23.86) to Hold from Buy and lowers their tgt to$26 from $35, based on a generic Solodyn filing by Impax that reinforces concerns about the longevity of Medicis’ biggest revenue generator and growth for Ziana, the co’s third key asset, that is already flattening a year after launch… Jefferies downgrades Autodesk (ADSK 42.65) to Hold from Buy and lowers their tgt to $48 from $55, based on recent survey work and checks that show a clear down-tick in business trends in N. America and believe there is a decent chance that some of this will spill over into other territories including Europe… Jefferies downgrades Aruba Networks (ARUN 11.50) to Hold from Buy and lowers their tgt to $13 from $21, based on recent delays of 802.11n that could impact FY09 sales and potential market share gains while valuation is still rich and VC share distribution remains an overhang, in their view. Miscellaneous: Morgan Keegan initiates Hiland Partners, LP (HLND 50.42) with an Outperform, based on an above-average growth outlook for distributions and distributable cash flow and units they believe are undervalued relative to such growth prospects.
06:06 NITE Knight Trading beats by $0.24, beats on revs (12.52 )

Reports Q4 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.24 better than the First Call consensus of $0.26; revenues fell 1.6% year/year to $257.3 mln vs the $208.3 mln consensus.
06:03 LTON Linktone announces the departure of its CFO, effective Jan. 31, 2008 (3.25 )

06:02 ERIC Sony Ericsson reports Q407 results (23.48 )

Co reports a pretax profit of 501 mln euros vs 384 mln in Q307 and 502 mln in Q406. Analysts surveyed by Reuters had expected Q4 pretax profit of 459 mln euros. ERIC had sales of 3.77 bln euros, versus a forecast for 3.76 bln. Gross margin improved to 31.8% in Q4 from 30.7% in Q307 and 29..0% a year earlier. Units shipped in the quarter reached 30.8 mln, an 18% increase from a year earlier.
05:51 For financial stocks, is it another false bottom? - WSJ

The Wall Street Journal reports bears says there is more bad news to come in the financials, meaning it is still too early to go bargain hunting among many financial stocks. Citigroup (C) itself practically said so, these investors add, by going out and raising more capital than would be needed if the crisis were passing. “The financials aren’t out of the woods yet,” says Thomas Vandeventer, a portfolio manager at Tocqueville Asset Management. “Other than brief bear-market rallies, it doesn’t look like there’s a compelling reason to buy these stocks now.” Not all investors are giving up on a rebound, and some think markets have baked too much bad news into financial stocks. “Who cares if there’s another write-down?” Richard Pzena, head of Pzena Investment Management, says about Citigroup. He says the firm’s long-term earnings potential remains at about $5 a share annually, given the bank’s strong franchise and access to funding, but that the market is currently pricing the stock as if profits will be forever degraded. Mr. Pzena’s firm has bet heavily on the financial sector. “The company has remarkable access to the capital markets, and it’s now one of the best-capitalized banks in the country,” Mr. Pzena says. He adds that the new capital will dilute Citigroup shareholders by about 10% but that this is a figure he can live with. In addition, history may show that for banks and brokers, it is indeed darkest before the proverbial dawn. Financial companies usually bottom several quarters before their performance improves, as investors anticipate a turnaround. And banks usually bottom out four months before the economy starts to improve, according to a study of the past 38 years by Birinyi Associates.
05:47 IMB IndyMac to cut work force by at least 24% - WSJ (4.49 )

The Wall Street Journal reports IndyMac Bancorp (IMB) announced plans to eliminate 2,403 jobs, or 24% of its work force, and said further reductions are likely, in the latest sign of fallout from the mortgage-default crisis. But Michael Perry, IndyMac’s chief executive, said in an interview that the co isn’t seeking to raise capital or be taken over by a larger institution. We feel like we have the capital and liquidity to survive on our own,” Mr. Perry said.
05:45 NDE IndyMac to cut work force by at least 24% - WSJ (30.24 )

The Wall Street Journal reports IndyMac Bancorp (NDE) announced plans to eliminate 2,403 jobs, or 24% of its work force, and said further reductions are likely, in the latest sign of fallout from the mortgage-default crisis. But Michael Perry, IndyMac’s chief executive, said in an interview that the co isn’t seeking to raise capital or be taken over by a larger institution. We feel like we have the capital and liquidity to survive on our own,” Mr. Perry said.
05:45 NDE IndyMac to cut work force by at least 24% - WSJ (30.24 )

The Wall Street Journal reports IndyMac Bancorp (NDE) announced plans to eliminate 2,403 jobs, or 24% of its work force, and said further reductions are likely, in the latest sign of fallout from the mortgage-default crisis. But Michael Perry, IndyMac’s chief executive, said in an interview that the co isn’t seeking to raise capital or be taken over by a larger institution. We feel like we have the capital and liquidity to survive on our own,” Mr. Perry said.
05:44 NDE IndyMac to cut work force by at least 24% - WSJ (30.24 )

The Wall Street Journal reports IndyMac Bancorp (NDE) announced plans to eliminate 2,403 jobs, or 24% of its work force, and said further reductions are likely, in the latest sign of fallout from the mortgage-default crisis. But Michael Perry, IndyMac’s chief executive, said in an interview that the co isn’t seeking to raise capital or be taken over by a larger institution. We feel like we have the capital and liquidity to survive on our own,” Mr. Perry said.
05:44 NDE IndyMac to cut work force by at least 24% - WSJ (30.24 )

The Wall Street Journal reports IndyMac Bancorp (NDE) announced plans to eliminate 2,403 jobs, or 24% of its work force, and said further reductions are likely, in the latest sign of fallout from the mortgage-default crisis. But Michael Perry, IndyMac’s chief executive, said in an interview that the co isn’t seeking to raise capital or be taken over by a larger institution. We feel like we have the capital and liquidity to survive on our own,” Mr. Perry said.
05:30 Morning Newspaper Headlines

WSJ: IndyMac (NDE) to cut work force by at least 24%… For financial stocks, is it another false bottom?
04:27 HTX Hutchison Telcom recognizes non-cash impairment charge (21.84 )

Co announces that it is to recognize a non-cash impairment charge of HK$3,854 mln (or approx $494 mln) in its 2007 audited consolidated financial statements in connection with the co’s investments in its mobile telecommunications business in Thailand. There will be a resulting deferred tax credit of HK$421 mln (or approx $54 mln) arising from this charge.
04:25 WIRES On The Wires -Update-

Tessera Technologies (TSRA) announces that it has licensed its OptiML Wafer-Level Camera technology and SHELLCASE Wafer-Level Chip Scale Packaging solutions to Nemotek S.A… Volcom (VLCM) acquires Electric Visual for $25.25 mln in cash; acquisition is expected to be EPS neutral in ‘08.
04:21 VLCM Volcom lowers Q407 and FY07 guidance (15.94 )

Co issues downside guidance for Q4 (Dec), sees EPS of $0.29-0.30 vs. $0.31 First Call consensus; sees Q4 (Dec) revs of $67.0-68.0 mln vs. $70.90 mln consensus. Co issues downside guidance for FY07 (Dec), sees EPS of $1.36-1.37 vs. $1.38 consensus; sees FY07 (Dec) revs of $266.0-267.0 mln vs. $270.66 mln consensus.
03:27 LDK LDK Solar and Ganzhong TCS plant sign long-term supply framework contract (36.59 )

Co announces that it has signed a long-term framework contract for the supply of Trichlorosilane with Jiangxi Ganzhong Chlorine & Caustic Company Ltd. (Ganzhong). Trichlorosilane is the key chemical used in the production of polysilicon. Under the contract, Ganzhong’s TCS plant will supply a minimum of 400 tons per month of TCS gas at favorable pricing beginning in May, 2008 and an expected minimum monthly supply of 1,600 tons per month beginning in August of 2008.
03:08 WIRES On The Wires -Update-

Noble (NE) said that subsidiaries of the co have reached agreement to sell the co’s North Sea platform drilling business to Seawell Holding UK Ltd. for $35 mln.
02:24 PII Polaris Industries announces Chief Executive Officer Tom Tiller expects to step down by the end of 2008 when his current employment contract expires (38.54 )

01:00 Weekday Trader names 5 pharmaceutical stocks that could see ‘08 FDA approval for their drugs - Barron’s Online

Barron’s Online identifies five drugs expected to hit the market in ‘08 that could improve treatment of serious medical conditions and eventually pay off. The list includes Merck’s (MRK) cholesterol drug, Cordaptive and Cardiome Pharma’s (CRME) heart drug, Kynapid. Schering-Plough (SGP) has the anesthesia medication sugammadex, and Roche Holding has Actemra for rheumatoid arthritis. Finally, Progenics Pharmaceuticals (PGNX) and its partner Wyeth (WYE) await methylnaltrexone, which prevents digestive problems caused by painkillers.
00:59 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on H&R Block (HRB), Boeing (BA), Regions Financial (RF), Downey Financial (DSL) and Circuit City (CC).
00:57 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Baidu.com (BIDU), Athenahealth (AB), Freeport-McMoRan (FCX) and Brookfield Asset Management (BAM).
00:57 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Tuesday’s edition, Jim favors Idexx Labs (IDXX), an integrated play on pet diagnostics. Cramer says the co has two upcoming catalysts as it prepares to replace two of its most popular blood and urine testing kits with new models. Cramer also likes the co’s recurring revenue stream and the $1.5 mln still left in its stock buyback program. Cramer says he does worry that the stock trades at more than two times its current growth rate, but notes that he’s willing to pay a premium for Idexx because none of its business is economically sensitive. Next, he suggests Riverbed Technology (RVBD) based on valuation. The estimates, he says, are so low that Riverbed can easily beat them. The co has a 41% long-term growth rate, and Cramer says he’s willing to pay up to 80x earnings for a growth rate that high. In the Sudden Death round, Cramer was bullish on Puget Energy (PSD) and Teva Pharma (TEVA). He was bearish on Given Imaging (GIVN).
00:55 WIRES On The Wires

Teradyne (TER) and Nextest Systems (NEXT) jointly announce that the FTC has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to Teradyne’s tender offer for the outstanding shares of Nextest Systems… Pioneer Natural Resources (PXD) announces that it has priced an offering of $440 mln aggregate principal amount of convertible senior notes due 2038.
00:52 SSTI Silicon Storage Technology announces completion of its stock option review and filing of its 2006 annual report (2.77 )

Co reports its 2006 financial results and filed its 2006 Annual Report on Form 10-K, containing restated financial statements reflecting accounting adjustments as a result of their recently completed voluntary independent review of its historical stock option practices. In its 2006 Form 10-K SST restated its prior financial results to record an additional $38.8 mln of non-cash stock-based compensation expense, associated tax charges of $4.3 mln and a related income tax benefit of $1.0 mln relating to stock option grants made from 1997 through 2005. Co also recorded previously immaterial audit differences of $370,000 for all years through 2005.
00:49 WIT Wipro clarifies on market speculation over acquisition of Cap Gemini (12.87 )

Co, on behalf of all companies in the Wipro group, including Wipro Technologies, at the request of French Securities Regulatory Authority Autorite des marches financiers, confirm that they have not recently been, and are not in discussions with and/or in relation to Cap Gemini on merger/takeover of Cap Gemini.
00:48 RNST Renasant reports Q407 results (17.63 )

Reports Q4 (Nov) earnings of $0.41 per share, $0.01 better than the First Call consensus of $0.40, revenues fell 1.7% year/year to $40.1 mln vs the $41.26 mnl consensus.
00:28 FUL H.B. Fuller beats by $0.01, misses on revs (22.07 )

Reports Q4 (Nov) earnings of $0.53 per share, adjusted for after-tax loss from sale of automotive JV, $0.01 better than the First Call consensus of $0.52; revenues fell 3.8% year/year to $360.9 mln vs the $385.7 mln consensus.