Data Feed

9:16 STKL SunOpta downgraded to Market Perform from Outperform at Northland Securities (9.56 )

09:16 S&P futures vs fair value: +11.5. Nasdaq futures vs fair value: +33.5.
09:16 XATA XATA initiated with a Buy at Feltl (3.30 )

09:15 MDU MDU Resources beats by $0.04, beats on revs; guides FY08 EPS below consensus (25.00 )

Reports Q4 earnings of $0.52 per share, $0.04 better than First Call consensus of $0.48; revenues rose 22% year/year to $1.46 bln vs the $1.3 bln consensus. Co guides FY08 EPS below consensus to $1.65-$1.90 vs First Call consensus of $1.93. Work backlog as of Dec 31 was approx $462 mln, compared to $483 mln at Dec. 31, 2006.
09:15 IDTI Integrated Device downgraded to Neutral from Buy at Longbow (9.01 ) -Update-

09:13 SCANX Gapping down

In reaction to weak earnings/guidance: SYNA -20.6%, TPX -11.7%, ITI -10.4%, TGI -8.5%, ZION -7.5%, VSEA -6.9% (also tgt cut to $51 at Stifel), IDTI -6.8% (also downgraded to Hold at Citigroup), STKL -5.9%, RDY -5.5%, IBKR -4.4%, LABL -3.3%, KLAC -1.4%, DV -1.3%, UB -1.2%… South African mining cos trading lower after country’s national power utility, Eskom, said it could not guarantee today’s power supply: GFI -11.1%, DROOY -10.7%, HMY -9.7%, AU -8.3%… Other news: MBRK -6.3% (announces an 8.75 mln share common stock private placement offering priced at $2.40/share), RIGL -4.4% (announces offering of 4 mln shares of common stock), DBTK -4.0% (files S-3 for the sale of 3.18 mln shares by selling stockholders)… Analyst downgrades: IDTI -6.7% (downgraded to Hold at Citigroup), SNV -2.1% (downgraded to Mkt Perform at Keefe Bruyette).
09:12 MDU MDU Resources beats by $0.04; guides FY08 EPS in-line (25.00 )

Reports Q4 (Dec) earnings of $0.52 per share, $0.04 better than the First Call consensus of $0.48. Co issues in-line guidance for FY08, sees EPS of $1.65-1.90 vs. $1.93 consensus.
09:12 VMW VMware: 4Q07 earnings preview – RBC (80.20 )

RBC notes that on the 3Q07 earnings call in late October, VMware did not provide a 4Q07 outlook. In addition, at that time, the company was still contemplating what type of guidance, if any, to provide for FY08. Firm expects upside execution relative to Street expectations, a positive tone on customer demand, and a defiant stance with respect to competitive alternatives.
09:12 NS NuStar Energy misses by $0.10, beats on revs (52.29 )

Reports Q4 (Dec) earnings of $0.47 per share, $0.10 worse than the First Call consensus of $0.57; revenues rose 72.5% year/year to $502 mln vs the $351.4 mln consensus.
09:10 PSD Puget Energy’s merger could close by end of 3Q08, sources say – FT Mergermarket (26.03 )

FT Mergermarket reports the co’s proposed acquisition by a consortium led by Macquarie Infrastructure Partners could close by the end of the third quarter, as the parties continue to file with regulators, sources told dealReporter. The merger requires multiple regulatory filings, among which include the Federal Energy Regulatory Commission, The Committee on Foreign Investment in the United States and the Washington Utilities and Transportation Commission A WUTC official said Puget had a scheduling hearing in the merger proceeding with their agency last week. The parties filed the merger application with the WUTC on Dec 17 last year. Martha Monfried, a spokesperson for Puget, confirmed that discussions about the procedural schedule were held with the commission last week, adding that the close is likely to take in place in the third quarter based on the commission’s procedural schedule.
09:09 NS prelim $0.47 vs $0.57 First Call consensus

09:06 NUVA NuVasive reaffirms Y07 GAAP EPS guidance, issues upside Y07 rev guidance, issues upside Y08 rev guidance (39.21 )

Co reaffirms EPS guidance for FY07 (Dec), sees GAAP EPS of $0.06-0.09, may not be comparable to ($0.34) First Call consensus; sees FY07 (Dec) revs of approx $154 mln vs. $148.81 mln consensus. Co issues upside guidance for FY08 (Dec), sees FY08 (Dec) revs of $204-208 mln vs. $202.73 mln consensus; co reaffirms its previous guidance of marginal GAAP profitability.
09:05 DRH Diamondrock Hospitality guides Q4 FFO below consensus (14.53 )

Co issues downside guidance for Q4 (Dec), sees funds from operations of $0.50 vs. $0.56 First Call consensus. Co said, “The Company’s preliminary fourth quarter and full year 2007 results reflect outstanding year-over-year growth that is likely to be among the best in the industry, but are below our previous expectations. In retrospect, the Company’s fourth quarter expectations were too optimistic in an uneven economic environment. Stronger than expected performance in New York City and Fort Worth could not offset slower than expected demand in several key markets, including Chicago and Boston, and moderating margin expansion.”
09:04 POT Potash: 2008 guidance consistent with investment outlook – RBC (129.10 ) -Update-

RBC notes that POT’s “best guess” is for Chinese potash price negotiations to conclude by the end of March or beginning of April. In contrast to the 2006 negotiations which dragged on, potash buyers located outside of China are not holding off purchases pending the conclusion of Chinese price negotiations and Russian producers are not shipping product into China. The comments from management on the Chinese potash negotiations were generally consistent with firm’s view that they should expect a substantial price increase in China this year.
09:02 ARBA Ariba: plenty of work left for the back-half of ‘08 – RBC (10.11 ) -Update-

RBC ntes the overall quarter for ARBA was mixed with total rev of $77.4 mln a bit light of the Street at $78.1 mln, while non-GAAP EPS of $0.07 was in-line with Street ests after backing out $0.02 of additional interest income due to the delayed closing of Procuri. 12-month subscription software backlog of $80 mln (up 63% y/y) was a record and clearly a result of their successful transition to an On Demand model. Management trimmed FY’08 rev guidance from $340 mln to $330-$335 mln but increased their subscription rev forecast from $113-$118 mln to $115-$120 mln. EPS of $0.45 was unchanged.
09:02 CENX Century Aluminum announces John O’Brien succeeds Craig Davis as Chairman (44.39 )

Co announces that Craig Davis has resigned as the Chairman of the Board and a Director of the Company. The Board has elected John O’Brien, a current Director, to succeed Davis as Chairman.
09:02 DRH sees Q4 funds from operations of $0.50 vs $0.56 First Call consensus

09:01 PSUN Pacific Sunwear announces Michael Henry Named Senior Vice President and Chief Financial Officer (10.16 )

Co announces the selection and appointment of Michael Henry as Senior Vice President and CFO of the co. Henry had been serving as Interim Chief Financial Officer since November 2007.
09:01 NUVA sees Y08 revs of $204-208 mln vs $202.7 mln consensus; reaffirms guidance of marginal GAAP profitability

09:01 NUVA reaffirms Y07 non-GAAP EPS guidance

09:00 CCUR prelim ($0.01) vs ($0.01) First Call consensus; revs $17.6 mln vs $17.47 mln First Call consensus

09:00 NUVA sees Y07 revs of $154 mln vs $148.8 mln consensus

09:00 PLT Plantronics announces 1 million share repurchase program (18.17 )

09:00 STJ St. Jude Medical: Independent clinical trial finds HIFU surgical ablation effective in treating atrial fibrillation (41.65 )

An independent investigator clinical trial has shown atrial fibrillation is effectively treated using the Epicor Cardiac Ablation System, when treated concomitantly to corrective heart surgery. The trial results were published in the December edition of The Annals of Thoracic Surgery. STJ manufactures and distributes the Epicor system.
09:00 S&P futures vs fair value: +11.0. Nasdaq futures vs fair value: +34.0.

Futures gain some ground and point to a strong start. In commodity trading, gold hit an all-time high of $924.30 per ounce in overnight trade on news that companies stopped mining in South Africa due to power outage concerns. Crude oil is up 1.2% to $90.50 per barrel.
09:00 SPWR Sunpower: Upgrade details (69.21 ) -Update-

As mentioned at 7:31 Piper Jaffray upgrades SPWR to Buy from Neutral and raised their tgt to $105 from $94 following earnings and saying shares of SPWR have lost most of its valuation premium relative to competitors. •The firm says 1) the ASP outlook is clearly better than they had anticipated a year ago, 2) their thesis for SPWR poly supply risks have played out as anticipated with two disappointing quarters of module supply constraint. The firm says they have evidence that M.Setek is ramping on track and schedule for a substantial ramp after an upcoming plant closure for government inspection.
08:59 WRAPX Pre-market Summary

Following yesterday’s broad-based rally, futures indicate another higher open for the mkt following a strong earnings report and outlook from tech giant Microsoft (MSFT) and a report from the Evening Standard that billionaire vulture fund operator Wilbur Ross is in takeover talks with troubled bond insurer Ambac (ABK). Shares of MSFT are up 5% pre-mkt after the co provided reassuring comments on its outlook, which included raised earnings and rev guidance for its fiscal year. The Ambac article in the Evening Standard said a deal for the stricken U.S. co could come within the next two weeks, pushing shares of ABK up 12% pre-mkt. The news is also supporting other bond insurers, specifically MBIA (MBI) and PMI Group (PMI). Dow futures are currently +91; Nasdaq futures are currently +31; S&P futures are currently +12.8. For technical levels of interest, click here… The Bond mkt is modestly lower in early trade as equity futures rally. The 10-yr is currently -03/32 to 3.713%. There are no Fed speakers scheduled today… In Commodities, February gold ($916.20 +10.40) rallied an all-time high of $924.30 overnight after mining companies in South Africa halted their operations because of acute power shortages. AngloGold Ashanti (AU), Gold Fields (GFI) and Harmony (HMY) said they had stopped all gold mining after they were informed by state-owned power utility Eskom that it could not guarantee power supply to their operations in South Africa. “It is not clear when the workers will resume their underground shifts,” the Chamber of Mines in Johannesburg said. Mar crude oil is trading up $1.12 to $90.53… In Europe, mkts were up by mid-day, gaining ground for a second straight session as details of a U.S. stimulus package eased fears over the outlook for the world’s top economy. FTSE is currently +1.0%; DAX is currently +2.0%; CAC is currently +1.4%. In Asia, mkts closed sharply higher after South Korea’s economy expanded faster than estimated and the U.S. moved closer to approving tax rebates. Nikkei closed +4.1%; Hang Seng closed +6.7%; Shanghai Composite closed +0.9%… Notable pre-market Calls include Upgrades: MT at Citi and Deutsche Bank, SPWR at Piper Jaffray; Downgrades: RDS.A at JP Morgan, T at Citi… On the Earnings calendar, no cos are confirmed to report today after the close… Today’s Economic calendar is empty.
08:59 SPWR Sunpower tgt cut to $112 at RBC (69.21 ) -Update-

RBC cuts their tgt on SPWR to $112 from $145. Firm believes shares are oversold on unfounded margin concerns and would be aggressive buyers at these levels. They see investor concern over lower 1Q08 margin guidance as misplaced given the co’s downstream system integration granting leverage against likely industry-wide cell/module margin compression in FY09+. To that end, mgmt raised FY08 guidance and reaffirmed target of blended GMs of 30% by Q109 (from 25.3% in Q407).
08:57 CNQ Canadian Natrl Res upgraded to Outperform from Sector Perform at CIBC (63.02 )

08:56 CEVA Ceva: Placing chips on CEVA’s market share growth – RBC (9.62 )

RBC believes CEVA is set to reap the fruit of high-margin royalty revs over the course of the next few quarters, while materially increasing market share, as current rev ests look favorable. They expect increasing royalty streams to start showing up in earnest in 4Q07 and further grow as FY08 unfolds. Firm also believes that top line growth from royalty business will quickly flow to the bottom line and drive solid margin expansion.
08:56 BPOP Popular Inc upgraded to Strong Buy from Market Perform at Raymond James (11.04 )

08:55 ABC AmerisourceBergen upgraded to Outperform from Market Perform at Raymond James (45.93 )

08:54 WIRES Newspaper Notable Mentions

Reuters: BX is setting up a $675 mln fund to invest in Brazil and will contribute $500 mln in capital, the Valor Economico newspaper said… WSJ: HD has decided to withdraw its application to buy a Utah bank, ending its plan of venturing into the home remodeling loan business… DigiTimes: Due to the translation lookaside buffer bug, AMD has postponed the launch of its upcoming quad-core Phenom 9700 CPU to the second quarter of 2008, however the co is planning to showcase the CPU at CeBIT 2008 in March along with 9900 and 9100e models, according to sources at motherboard makers… Netac Technology, a NAND flash application maker which is being sued by M-Systems (being merged by SNDK) for patent infringement, posted a report from China-based media saying that the co has won the patent infringement lawsuit.
08:54 NOVA Novamed upgraded to Strong Buy from Outperform at Raymond James (2.96 )

08:51 BCRX BioCryst Pharm: Delay in Phase III; tgt cut to $4.50 – Caris (4.89 )

Caris cuts their tgt on BCRX to $4.50 from $8, given the delay in the pivotal Phase III peramivir trial for influenza. BioCryst (BCRX) has three small molecule drugs in Phase II; lead agent peramivir for influenza, BCX-4208 for psoriasis, and Fodosine for cutaneous T-cell lymphoma (C.T.C.L.).
08:49 YHOO Yahoo!: 4Q07 preview; restructuring continues – Stifel (21.69 )

Stifel notes that YHOO is scheduled to report 4Q07 and FY 2007 results on Tuesday, January 29, 2008. Firm expects YHOO to report 4Q07 revenues ex-traffic acquisition costs (ex-TAC) of $1.411 bln. Firm notes possible topics for the co’s conference call likely include growth initiatives such as new mobile platforms for consumers and developers, as well as social networking tools built around Yahoo! Mail and a music service. The co will also likely discuss new partnerships with online and offline publishers such as WebMD Health (WBMD), CNBC, Cars.com and software developer Adobe.
08:48 POT Potash will be the next Canadian jewel to be snapped up by a foreign buyer – National Post (129.10 )

National Post reports the co will be the next Canadian jewel to be snapped up by a foreign buyer. Like Alcan, and Canada’s nickel and steel giants, it trades at a decent price, but nothing like the premium foreign buyers would pay. High commodity prices and profits made those deals seem like bargains in retrospect. Potash investors should take note. “We know BHP Billiton has taken a look at us, we know Rio (RTP) has looked at us” and sovereign wealth funds “are also a possibility,” Bill Doyle, CEO of the co, said. It makes sense. If metals are strategically important to developing nations, agriculture will be, too.
08:48 SCANX Gapping up

In reaction to strong earnings/guidance: SCSC +26.4% (also upgraded to Peer Perform at Bear Sterns), PKI +18.9%, EZPW +14.5%, VPRT +13.6%, BRCM +13.3%, CVTI +12.6%, ETFC +9.2%, LSCC +9.0%, INSW +8.3%, EXTR +7.3%, CPWR +6.4% (also upgraded to Buy at Piper), CNXT +6.3%, RLRN +6.0%, WFR +5.4% (also tgt raised at Piper), JNPR +5.2%, MCHP +5.1% (also upgraded to Outperform at Credit Suisse), MSFT +4.5%, EMN +4.4% (also expects strategic initiatives to double EPS to $10 by 2012), AMGN +4.1% (also announces Denosumab Osteoporosis study met primary and all secondary bone mineral density endpoints), OPWV + 4.0%, PRST + 3.5%, CRDC + 3.4%, FRNT +3.4%, PMCS +2.5%, APEI +2.1%, CAT +1.9%, CSH +1.9%, ESIO +1.9%, BKUNA +1.8%, PII +1.8%, JJSF +1.6%, LEG +1.5%, KNSY +1.4%, JAVA +1.4%, HON +1.4%, LRCX +1.3%, APOG +1.3%, ABFS +1.1%… M&A news: RSTO +7.5% (enters into amendment to merger agreement with Catterton Partners; $4.50/share in cash)… Select tech stocks showing strength with several companies reporting earnings in the sector: BIDU +4.8%, CSCO +3.5%, MRVL +3.2%, RIMM +2.4%, GOOG +2.4%, DELL +2.2%, INTC +1.9%… Other news: CNIC +13.0% (announces agreement with Yellow Pages Group to provide local content to the Mamma.Com search engine), ABK +13.0% (Wilbur Ross in takeover talks with ABK, according to U.K.’s Evening Standard – Reuters), RFMD +8.6% (still checking), GFG +7.5% (Carl Icahn discloses 9.8% stake in SC 13D filing), ESLR +5.2% (ESLR and MMWEC announce joint effort to promote solar use in municipal utility communities), TMA +3.4% (Richard Rainwater discloses 13% stake in SC 13D), BSC +3.4% (Cramer discusses possibility of M&A on MadMoney), NVDA +3.2% (working on first GPGPUs for Apple Macs – AppleInsider), NUVO +3.1% (announces results from Phase 3 NAPA program in Acute Peripheral Arterial Occlusion), FCX +3.1% (still checking), MBI +2.8% (up in sympathy with ABK), BHP +2.7% (Coal shortage at BHP may lift steel price), CHINA +2.5% (provides update on insider buying), TOL +2.3% (Cramer makes positive comments on MadMoney), ARNA +2.2% (announces that MRK initiated a Phase 1 clinical trial of a second generation oral niacin receptor), CHL +2.1% (CEO sees 6 mln net new customers per month in 2008 – DJ), BAC +1.5% (prices $12 bln in depositary shares and convertible preferred stock)… Analyst upgrades: SPWR +6.6% (upgraded to Buy at Piper), CTRP +5.3% (upgraded to Buy at Piper), MT +3.3% (upgraded to Buy at Citigroup and Deutsche Bank), PNK +3.3% (upgraded to Overweight at Thomas Weisel), HAL +2.7% (upgraded to Overweight at Morgan Stanley), NYX +2.3% (upgraded to Buy at Piper), WB +1.8% (upgraded to Neutral at Merrill), OVTI +1.7% (upgraded to Outperform at Baird), VIGN +1.0% (upgraded to Buy at ThinkEquity).
08:47 HLS Healthsouth downgraded to Underperform from Market Perform at Raymond James (18.45 )

08:46 EAT Brinker downgraded to Market Perform from Outperform at Raymond James (19.00 )

08:46 KLAC KLA-Tencor: Choppy booking trends likely to persist over next few quarters – Stifel (41.97 ) -Update-

Stifel notes KLAC reported 2Q8 results. Firm states orders of $580 million grew 20% sequentially, but as we had previewed, March quarter orders are being projected to decline 10% sequentially. Given current industry conditions we are not surprised by management’s orders guidance of down 10% sequentially. Firm believes that the major culprit in this projected downtick is due to a slowdown in memory capex spending, particularly from the DRAM side. Firm believes trend is likely to persist over the next few quarters as the DRAM market tries to find some level of supply-demand stabilization, which would then spur new capacity spending. They expect orders to stay choppy for KLA-Tencor during this period.
08:44 AKAM Akamai Tech CEO appears on CNBC, believes internet sector will be immune to a rough economic year (30.39 )

AKAM CEO appears on CNBC, says if there is a rough economic year, the internet sector will be immune to it. But says it can’t stay immune forever. Fastest growth in usage and traffic coming from Asia.
08:43 AXG Atlas Acquisition IPO prices, blank check company (10.00 )

Atlas Acquisition (AXG) prices its IPO at $10. AXG is a blank check company formed for the purpose of acquiring an operating business. To date, our efforts have been limited to organizational activities as well as activities related to this offering. James N. Hauslein, its chairman and CEO, has over 20 years of private equity investing and public company operating experience. Mr. Hauslein led the growth of Sunglass Hut from 1987 to 2001 from a small, family-owned specialty retailer into a complex, vertically integrated, international consumer products business. Prior to his tenure at Sunglass Hut, Mr. Hauslein was a partner at private equity firm Kidd, Kamm & Company, where he was responsible for identifying, consummating, and overseeing a number of middle market acquisitions. This is a 20 mln share deal led by Lazard. (IPOXX)
08:43 IDTI Integrated Device downgraded to Hold from Buy at Citigroup (9.01 )

08:43 VSEA Varian Semi tgt cut to $51 at Stifel (33.40 ) -Update-

Stifel cuts their tgt on VSEA to $51 from $57 given that the current weakening industry environment (and high market uncertainty), management took a conservative tone on its outlook, which they believe will negatively affect the stock on Friday. Firm wants to emphasize that they are not saying that current industry conditions should be ignored (and they can’t) or that Varian is immune to these dynamics.
08:41 CORS Corus Bankshares reports Q4 (Dec) results (10.72 )

Reports Q4 (Dec) earnings of $0.03 per share, includes provision for loan losses, may not be comparable to the First Call consensus of $0.47. “Continued weakness in the housing and mortgage markets, combined with a general slowdown in the economy, has resulted in a significant decline in Corus’ 2007 earnings. With a fourth quarter profit of only $1.9 million, this is clearly the worst quarter we have seen in many, many years.”
08:38 CBH Commerce Bancorp reports Q4 (Dec) results, misses on revs (37.16 )

Reports Q4 (Dec) earnings of $0.17 per share, includes charges & gains, may not be comparable to the First Call consensus of $0.30; revenues rose 15.3% year/year to $567.8 mln vs the $581.3 mln consensus.
08:38 CORS prelim $0.03 may not compare to $0.47 First Call consensus

08:37 CBH prelim $0.17 vs $0.30 First Call consensus

08:36 Qatar eyes stakes in EU, European banks – WSJ

WSJ reports Qatar Investment Authority, a $100 bln sovereign wealth fund managed by the gas-rich Gulf sheikdom, will invest up to $15 bln buying stakes in blue-chip European and U.S. banks, Sheikh Hamad bin Jassem Al Thani, Qatar’s prime minister, said in an interview. “We see an opportunity in U.S. banks; we’re looking at buying stakes in 10 or 12 blue-chip banks, but we will start small,” said the sheikh, who is also the chief executive of the Qatar Investment Authority.
08:34 BRCM Broadcom: Solid results and guidance – Caris (22.48 ) -Update-

Caris maintains their Buy rating and $36 tgt as they see new product cycles driving incremental rev and fundamental outperformance over the next several years. The stock will likely be up today on short covering, but firm is concerned that consensus numbers still need to come down to meet their recently lowered ests. Firm views BRCM stock has significant potential for appreciation over the next several years, but number cuts in the current market environment could still prove to be a near-term headwind for an admittedly risky growth story.
08:33 WIRES On The Wires

CEVA (CEVA) announces the surrender and termination of its long-term lease on Harcourt Street located in Dublin, Ireland, a facility that the co previously vacated… Modine Manufacturing (MOD) announces with Plaintiffs’ counsel, that Modine and Plaintiffs have reached a settlement in principle in connection with litigation against Modine, alleging environmental contamination in McCullom Lake Village, McHenry County, Illinois, where Modine operates a manufacturing facility.
08:33 PALM Palm closing retail stores, paying out Treo owners – CNET (5.00 )

CNET reports the co has decided to close its retail stores as it faces the effects of a class-action lawsuit filed by Treo owners. Palm announced on Wed that Treo 600 and 650 owners who have had their units replaced or repaired at least twice are eligible for cash rebates on new Palm smartphones, as part of a settlement of a class-action suit filed in 2005. The co will also repair any Treo 600 or 650 that hasn’t failed twice, but is outside of the original warranty. Thursday brought news that the co’s 34 stores–eight Palm-branded locations and 26 stores that were inside Airport Wireless outposts–will have to go by the end of the current quarter. “We continue to focus our company around core business initiatives and are consolidating more resources behind fewer programs in order to compete most effectively and build world-class, category-defining mobile solutions. We have therefore made the decision to close our retail stores,” the company said in a statement regarding the retail move.
08:31 THC Tenet Healthcare agreement with Blue Cross of California (4.61 )

Co announces that it has entered into a new multi-yr agreement with Blue Cross of California, which is Tenet’s second largest managed care payer nationally. The contract will be effective Feb. 1, 2008. Financial terms were not disclosed.
08:31 XNL Xethanol announces receipt of grant for citrus waste to cellulosic ethanol production (0.57 )

08:31 S&P futures vs fair value: +7.6. Nasdaq futures vs fair value: +26.8.

Stock futures continue to point to a higher start. The majority of earnings reports from last night and this morning have been better than or inline with expectations. There are no economic releases or Federal Reserve speakers today.
08:31 INSU Insituform Tech announces water and sewer projects in Hong Kong totaling more than $13 mln (12.36 )

Co announces water and sewer projects in Hong Kong totaling more than $13 mln. INSU started 2008 with approx $50 mln in project backlog in its newly formed joint venture operations in Hong Kong and India.
08:30 CEM Chemtura announces agreement to sell Oleochemicals business (6.09 )

Co announces that it has reached agreement to sell its global oleochemicals business to PMC Group NA for an undisclosed amount, subject to financing and other conditions including customary closing conditions. Proceeds from the sale will be used primarily for debt reduction. The transaction is expected to close by the end of the first quarter. The oleochemicals business had revenues for 2007 of ~$175 mln.
08:28 APEI American Public Education issues upside Q4 guidance, in line Q1 guidance (40.40 )

Co issues upside guidance for Q4 (Dec), sees EPS of $0.17-0.19 vs. $0.16 First Call consensus; sees Q4 (Dec) revs of $20.8-21.1 mln vs. $20.48 mln consensus. Co sees Q4 net course registrations for new students of approx 6.8k and total net course registrations of approx 27.8k in Q4. Co issues in-line guidance for Q1 (Mar), sees Q1 (Mar) revs of $21.5-22.1 mln vs. $21.59 mln consensus. Co sees Q1 net course registrations of new students of 7.8k or more and total net course registrations of 31.5k or more.
08:28 MGM MGM Mirage: Tender offer may present arbitrage opportunity – Susquehanna (73.05 )

08:28 CHKP Check Point Sftwr profiled in Inside Wall Street in Business Week (21.53 )

Business Week reports although the co’s security products are a high priority for many cos seeking to protect Web networks, its stock has slid from 26 in Oct to 20 on Jan. 23. A concern is that corporate outlays will shrink because of a slowdown. But Richard Parower of J&W Seligman, which owns shares, says the drop is a chance to buy at a discount. There’s “at least a 30% upside in the stock over the next 12 months,” he says. Ramat Gan of Friedman, Billings, Ramsey, says the co’s “beefed-up VPN/Firewall and corporate security fears” will help in a possibly soft environment in 2008’s first half. He forecasts 2008 earnings of $1.72 a share, up from an estimated $1.58 in 2007.
08:26 WINS S M & A profiled in Inside Wall Street in Business Week (5.35 )

Business Week reports with recession fears rising, recession-resistant stocks are in demand. One that might fit the bill is SM&A, a consulting outfit that helps technology, defense, and aerospace cos win govt contracts. Demand for SM&A’s planning and strategy help is driven more by predetermined budgets than by the economy, says George Sutton of Craig-Hallum Capital Group. One SM&A client is ITT, which won an 18-year, $1.8 bln contract from the FAA to set up a new, more accurate system in tracking weather, terrain, and flight information. Tim Brown of Roth Capital Partners sees it earning 49 cents a share in 2008 and 58 cents in 2009 vs. 2007’s 36 cents.
08:26 APEI sees Q1 revs of $21.5-22.1 mln vs $21.6 mln consensus

08:25 APEI sees Q4 EPS of $0.17-0.19 vs $0.16 cosnensus; sees revs of $20.8-21.1 mln vs $20.48 mln consensus

08:25 XL XL Capital upgraded to Buy from Hold at Stifel- tgt $60, based on valuation (45.30 )

08:25 ITRI Itron profiled in Inside Wall Street in Business Week (80.75 )

Business Week reports the co isn’t a household name, but it is the global leader in advanced meter-reading gear for collecting and analyzing data on electricity, natural gas, and water use in residential, commercial, and industrial locations. Itron sells its computerized, handheld data-collection devices and automatic meters to some 3,000 utilities. With a 60% mkt share in North America, “Itron is the best pure play in end-to-end smart metering,” says Steven Charest, chief strategist at DivineCapitalMarkets, which owns shares. Of the 2.5 bln meters in the world, he notes, 85% are the old electromechanical type, which suggests to him that a robust replacement business lies ahead. Itron stopped making the electromechanicals in 2005. In December the co won a $480 mln contract from Edison International’s Southern California Edison to provide it with new meters and associated systems. Itron’s recent purchase of Luxembourg’s Actaris gave it a 17% share of the global electric metering business, 23% of gas, and 16% of water. John Quealy of Cannacord Capital says Itron is one of his “best ideas” for 2008. He says the utilities need Itron’s “efficient technologies” to cut costs and boost efficiency.
08:24 CTL Centurytel upgraded to Buy at Stifel- tgt $42 (33.43 )

Stifel upgrades CTL to Buy from Hold with a $42 tgt saying based largely on valuation, as they believe the company’s 16.1% 2008 free cash flow yield and $750 mln share buyback authorization is too compelling to ignore.
08:23 AF Astoria Fincl upgraded to Hold at Stifel (23.99 )

Stifel upgrades AF to Hold from Sell saying the steepening of the yield curve, coupled with an unusually large basket of borrowings set to reprice considerably lower, is causing them to raise their earnings estimates as well as their rating on shares of Astoria. The firm says there remains a number of unknowns related to the Astoria story (primarily related to credit); however, despite that fact, given that this company is so highly levered to the yield curve, and the pool of “pure-play yield curve thrifts” have diminished, they believe it would be foolish to fight the tape on this one.
08:23 JNPR Juniper Networks: Visibility improved in a rocky macro environment – Baird (26.30 )

Baird notes JNPR rev and EPS were well ahead of expectations, outlook was increased, and rev strength was broad-based. Importanly, the Enterprise unit outperformed on rev and margins. Visibility improved in a rocky macro environment, which provides confidence in the sustainability of its momentum. Firm recommends holding JNPR and reiterates their Outperform rating. Firm cuts their tgt to $33 from $37 for growth investors as financial execution is improving, macro themes remain strong and stock has pulled back.
08:22 VSEA Varian Semi: Memory spending will be choppy in the near term; mkt share opportunities to remain strong in 2008 – Broadpoint Capital (33.40 ) -Update-

Broadpoint Capital notes VSEA reported 1Q08 revs of $254.1 mln and EPS of $0.57. VSEA mgmt acknowledged that they are taking a very conservative stance on semiconductor capital spending in 2008. Firm believes that they basically looked at the scale of memory shipment push-outs at the end of the Dec quarter and have extrapolated this activity into March and possibly June 2008. Even though memory spending will be choppy in the near term as everyone already expected, they believe that VSEA’s market share opportunities will remain strong in 2008, especially in high energy tools in the second half of the year and into 2009.
08:21 CHU China Unicom may buy 15 million CDMA phones, report says – Bloomberg (22.47 )

Bloomberg reports the co plans to buy 15 mln handsets for its smaller network this year, the Shanghai Securities News reported, citing a co executive.
08:20 TASR TASER upgraded to Buy at Feltl (9.70 ) -Update-

In a note dated yesterday Feltl upgraded TASR to Buy from Hold noting TASR shares have declined 47% since their downgrade on July 24, 2007. At the time, they lowered their rating mainly from a valuation perspective as the shares had enjoyed strong performance leaving little room for disappointments. The firm says the majority of this sell off has occurred since year end during the dramatic market meltdown. This period of weakness could be related to a series of (strange) news releases primarily relating to old patent infringement issues from a couple of TASR competitors, combined with a rather direct response from TASR management. During this same time, TASR enjoyed a successful PR campaign with its new consumer TASER at the Consumer Electronics Show. The firm also understands there was a recent citizen review board hearing in Toronto to discuss the use of TASERs, and management was present. While they do not know the official outcome, they believe management and the police department were satisfied with the hearings.
08:20 EMN Eastman Chem expects strategic initiatives to double EPS to $10 by 2012 (59.75 )

Co announces announced it expects the strategic initiatives the company is pursuing to result in a doubling of earnings per share to $10 by 2012. In addition, EMN expects to increase earnings per share each year from 2008 to 2012, with 2009 earnings expected to increase over 2008 by 10 to 15%. According to the company, a priority for EMN is increasing operating earnings in its Specialty Plastics segment to approaching $100 mln in 2009. For Performance Polymers, the company expects low single digit positive operating margins for full year 2008 and to approach 10% operating margins for full year 2009. EMN’s milestones for improving profitability in Specialty Plastics includes increasing revenue from cellulose esters used in L.C.D. screens to $100 mln in 2009 from approx $50 mln in 2007. According to the company, a priority for EMN is increasing operating earnings in its Specialty Plastics segment to approaching $100 mln in 2009.
08:20 AWWC Access Worldwide Commun: Announces expanded relationship with ETFC – Rodman & Renshaw (0.42 ) -Update-

Rodman & Renshaw notes AWWC.OB announced a $4 mln strategic investment and an extension of the Master Service Agreement with its largest customer E*TRADE Financial Corp. Under the terms of the agreement ETFC will be issued 5.8 mln new shares in exchange for an initial investment of $3 mln, (an average cost of $0.52/share). E*TRADE has also agreed to purchase an additional $1 mln worth of shares, 1 year from the date of the original transaction, pricing will be at a 20% discount to the then 3 month average price. As part of the agreement E*TRADE will be nominating two employees for board seats, these employees include the current E*TRADE CIO and its head of North American retail operations. Firm views this transaction as a significant positive, both as added liquidity for Access and as a statement as to its relationship with E*TRADE.
08:20 BONDX Bond Watch: Leaking Gains

The morning’s gains have stumbled into the open. The flight-to-quality has flown the coop & riskier assets are once again finding buyers. The shift in sentiment began with the rate cut at the open on Tues & while markets continued to teeter dip buyers in equities (with financials helping lead the way) propped up the show long enough for confidence to build on a fiscal stimulus package & potential help for the bond insurers. None of this bodes well for bonds & a retracement has begun. The 2-10-yr yield spread is flatter at 137.8 as curve trade unwinds some eexuberant steepness as expectations for rate cuts in the pipeline get adjusted to the less aggressive side. Bond prices in the EuroZone & Japan suffered from the renewed confidence in markets with the former helped a little lower on a decent German consumer confidence report. Treasuries have nothing to work with today with the calendar clear of catalysts. Instead, the market looks to play out some technical moves with prices weighted by declining momentum. The downside looks to be plumbed as equities continue to stabilize to the upside & profits get booked. The dollar is trying to firm up on the euro while grinding a little higher on the yen. Spot gold is up at 916.57 (+3.72) while crude oil bubbled up to 90.27 (+0.86). The euro is at 1.4708 & the yen is at 107.7175 while the 10-yr is -03/32 yielding 3.711%.
08:20 Company default risk falls on report Wilbur Ross may buy Ambac – Bloomberg

Bloomberg reports the risk of European cos defaulting headed for the biggest weekly decline in almost two months amid speculation bond insurer ABK will be bought by billionaire Wilbur Ross. Credit-default swaps on HBC dropped 9 basis points to 58, after trading as high as 92 on Jan 22. Hannover Re, Germany’s second-biggest reinsurer declined 9 to 54 as of 11 a.m. in London. The benchmark Markit iTraxx Europe index fell 3 basis points to 70, down from a record 92 basis points on Jan. 22, according to JPMorgan.
08:18 VSEA Varian Semi: Further downside ahead – ThinkEquity (33.40 )

ThinkEquity believes near-term risks continue to exist from the memory segment, which they expect to decline by another 20-30% from current levels. With a current 60% market share, they think VSEA’s future growth is likely to be largely market-driven rather than driven by share gain.
08:18 SCANX Early pre-market gappers

Gapping up: SCSC +26.4%, EZPW +14.5%, VPRT +13.6%, BRCM +13.3%, ABK +13.0%, CVTI +12.6%, ETFC +9.2%, LSCC +9.0%, RFMD +8.6%, INSW +8.3%, RSTO +7.5%, GFG +7.5%, EXTR +7.3%, SPWR +6.6%, CPWR +6.4%, WFR +5.4%, ESLR +5.2%, JNPR +5.2%, MCHP +5.1%, BIDU +4.8%, MSFT +4.5%, EMN +4.4%, AMGN +4.1%, MRVL +4.0%, OPWV +4.0%, MT +3.4%, CRDC +3.4%, TMA +3.4%, BSC +3.4%, FRNT +3.4%, PNK +3.3%, NVDA +3.2%, NUVO +3.1%, GOLD +3.1%, FCX +3.1%, MBI +2.8%, BHP +2.7%, HAL +2.7%, ABX +2.7%, PMCS +2.5%, CHINA +2.5%, ANH +2.5%, GOOG +2.4%, NYX +2.3%, TOL +2.3%, ARNA +2.2%, RIMM +2.1%, CAT +1.9%, CSH +1.9%, INTC +1.9%, ESIO +1.9%, WB +1.8%, PII +1.8%, OVTI +1.7%, LEG +1.5%, BAC +1.5%, JAVA +1.4%, HON +1.4%, WFC +1.3%, LRCX +1.3%… Gapping down: SYNA -20.6%, TPX -11.7%, VSEA -11.4%, DROOY -10.7%, ITI -10.4%, HMY -9.7%, TGI -8.5%, AU -8.3%, ZION -7.5%, STKL -5.9%, IDTI -5.6%, IBKR -4.4%, RIGL -4.4%, DBTK -4.0%, IDTI -3.1%, SNV -2.1%, KLAC -1.4%, DV -1.3%.
08:18 WFR MEMC Elec: Concerns proven to be overblown – FBR (71.52 ) -Update-

Friedman Billings notes WFR Q4 results and CY08 guidance clearly indicate that WFR’s diversification strategy is working. Although, into the report, there were concerns about earning power, given the current weak semi wafer demand, WFR’s exposure to not only the solar wafer market but also spot poly indicated that there is enough cushion to absorb weak pricing in one area with the strength in others. Yes, increased unit shipment (mix shifting from 200mm to 300mm semi wafers) does help, but one cannot ignore the impact of increased spot poly prices (on the margin profile), which was illustrated last night as reported gross margin exceeded expectations despite a revenue miss. Firm believes better-than-expected CY08 EPS guidance is a strong catalyst to accumulate aggressively towards firm’s price target of $100.
08:17 BRCM Broadcom: Strong results and guidance; stock seems oversold – FBR (22.48 ) -Update-

Friedman Billings notes BRCM reported very clean 4Q07 financial results. The 1Q consensus EPS ests may creep a bit lower on continued “opex gone wild.” Firm reduces their 2008 growth expectations, given broad macroeconomic concerns, resulting in slight EPS cuts and in a lower price target on BRCM shares (from $41 to $34). With recession fears rampant and the stock now sitting at oversold levels, they think short-covering and value-buying will drive the shares into the mid- to upper-$20 range near-term. Firm believes investors should take advantage of this buying opportunity.
08:16 CHL China Mobile CEO sees 6 mln net new customers per month in 2008 – DJ (77.85 )

DJ reports the co’s CEO said he expects to continue adding around 6 mln new subscribers a month in 2008, but added that there is still no timetable for a new listing on the Shanghai Stock Exchange. Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Wang said the co was still seeing very large demand for its services. The co, which has more than 370 million subscribers, added 6 mln net new customers per month in 2007. “This year we think we can keep the growth,” he said. Wang said the co will focus on new subscribers and increasing voice and data usage with existing customers. He added that despite press reports, the co is still willing to have discussions with Apple (AAPL) about selling the iPhone in China. “We’ve not started any formal negotiations with Apple. The door is open to all for discussions about fashionable phones,” he said.
08:14 NOK Nokia upgraded to Strong Buy from Market Perform at Raymond James (36.48 ) -Update-

08:11 MATK Martek Biosci tgt upped to $35 at ThinkEquity; firm thinks concerns about manufactured DHA may present a buying opportunity (32.04 )

ThinkEquity raises their MATK tgt to $35 from $32 following a meeting with the co, saying MATK’s revenue growth seems to be on track through new food and beverage offerings, as well as through supplements. They also were encouraged by a focus on margin expansion, which has caused them to raise FY2008 and FY2009 EPS estimates. In addition, they believe that concerns about manufactured DHA being raised by a corporate watchdog group yesterday may present a buying opportunity if the market reacts negatively to the news.
08:11 TASR TASER: Proposed expansion in Toronto offers another potential catalyst – Jefferies (9.70 )

Jefferies notes a proposal by the Toronto Police Service to equip each of its front-line officers with a TASR represents a potentially material catalyst by 2009. It also highlights the growing international law enforcement demand that they project as one driver putting the co on a multi-year growth trajectory.
08:11 VOD Vodafone rises in UK trade rumors of the sale of its US operations – The Independent (34.05 )

08:11 CTRP Ctrip.com upgraded to Buy from Neutral at Piper Jaffray (47.98 )

08:10 CCO Clear Channel Outdoor initiated with a Hold at Jefferies- tgt $25 (23.96 )

Jefferies initiates CCO with a Hold and a $25 tgt saying recent trends, discussions with management and their channel checks all indicate that the outdoor ad industry is softening, and they believe that CCO’s current price correctly reflects struggles ahead.
08:09 SPWR Sunpower: Jefferies finds SPWR’s valuation attractive compared with its projected earnings growth rate and believes co is well positioned to execute on its growth expectations (69.21 ) -Update-

08:09 RMG RiskMetrics Group prices its IPO toward low end of range; provider of risk management and corporate governance products (17.50 )

RiskMetrics Group (RMG), a provider of risk management and corporate governance products, prices its 14 mln share IPO at $17.50, toward the lower end of its expected $17-19 range. RiskMetrics provides its clients with products and services that allow them to measure portfolio risk across security types, geographies and markets. RiskMetrics also owns ISS, which provides corporate governance and financial research services to institutional investors and corporations. ISS, which was acquired in Jan 2007, provides clients with a fully-outsourced proxy research, voting and vote reporting service to assist them with their proxy voting responsibilities. RMG sells its products and services primarily on an annual subscription basis. It has about 3,500 clients in 50 countries….. Customers include asset managers, hedge funds, pension funds, banks, insurance companies, financial advisors and corporations. Among its clients are 70 of the 100 largest investment managers, 34 of the 50 largest mutual fund cos, 41 of the 50 largest hedge funds and each of the 10 largest global investment banks. The company consists of two segments: RiskMetrics and ISS (which was acquired in Jan 2007). Its flagship RiskManager system integrates market data with widely adopted analytical models and robust processing capabilities. ISS is a provider of corporate governance and specialized financial research and analysis services to institutional investors and corporations. In Aug 2007, ISS acquired CFRA, a forensic accounting research firm… The co is profitable and posted revenue of $172.7 mln for the 9 mos ended Sep 30, up 129% yr/yr…. Briefing Note: Probably the closest recent IPO comparable would be MSCI (MXB 32.17), which provides tools for investment analysis and was spun off from Morgan Stanley (MS). MXB has done well, it priced at $18 on Nov 15, it opened at $22.25 and is now up 79% from its offering price despite a weak overall market so that bodes well for RMG. This is a 14 mln share deal led by Credit Suisse, Goldman and BofA. (IPOXX)
08:08 PLXS Plexus: Another good performance; profits likely peaked for Plexus – Jefferies (22.20 )

Jefferies notes that while they recognize the exceptional job PLXS has done at improving financial results over the past couple of years, a challenged economy, peaking profits and a declining defense business in CY08 keep them at a Hold rating.
08:06 CY Cypress Semi: Miss caused by weakness in consumer semi business as Sunpowers on; tgt cut to $22 – Jefferies (20.42 ) -Update-

Jefferies says that despite their belief there is likely unlocked value in the Cypress semi business owing to the large earnings leverage in ‘08/’09, given its SunPower (SPWR) holdings accounting for ~75% of CY’s valuation, they are unable to reconcile the risk/reward profile and remain neutral. FIrm cuts tgt to $22 from $24
08:06 CCU Clear Channel’s buyout appears to be on solid footing – NY Post (33.72 )

NY Post reports the $27 bln leveraged buyout of the co appears to be on solid footing despite scores of jittery investors who feared the deal could fall apart. TH Lee’s top dealmaker, Scott Sperling, calmed investor nerves yesterday in an interview at the World Economic Forum in Davos, Switzerland. Sperling said in an interview with Bloomberg News that they have “a lot of good financing sources” and that the deal will probably be completed by March 31. “We have every expectation” that banks will finance the acquisition, he said. “There have been issues in the marketplace in some other transactions, but we’re hopeful that’s not the case here.”
08:05 GWW WW Grainger beats by $0.01, reports revs in-line; reaffirms FY08 EPS guidance (80.79 )

Reports Q4 (Dec) earnings of $1.28 per share, $0.01 better than the First Call consensus of $1.27; revenues rose 10.2% year/year to $1.61 bln vs the $1.6 bln consensus. Co reaffirms guidance for FY08, sees EPS of $5.65-6.00 vs. $5.74 consensus.
08:03 Morgan Stanley, Lehman Brother and Bank of America are eliminating about 1160 jobs – NY Post

NY Post reports MS, LEH and BAC are eliminating about 1,160 jobs as the worst U.S. housing mkt in 26 years slows economic growth and their profit outlook, according to people familiar with the cos’ plans. Morgan Stanley will cut about 1,000 in asset mgmt, retail brokerage and support areas such as technology and administration, one of the people said. The positions at Lehman are concentrated in structured finance, commercial real estate, securitization, trading of mortgages and collateralized debt obligations, a second person said.
08:03 IBKR Interactive Brokers tgt upped to $37 from $34 at Sandler O’Neill following “another strong quarter in volatile times” (32.86 )

08:03 WIRES On The Wires

Geron (GERN) announces that President and Chief Executive Officer Thomas Okarma has resumed his operational leadership of the co’s oncology drug development activities… Arena Pharmaceuticals (ARNA) announces that Merck (MRK) initiated a Phase 1 clinical trial of a second generation oral niacin receptor agonist under a collaboration between the cos to discover drugs for the treatment of atherosclerosis and other disorders. The initiation of this trial does not trigger a milestone payment… Catalyst Pharmaceutical (CPRX) announces that it has initiated enrollment of patients for its 180- patient, U.S. Phase II clinical trial evaluating the use of CPP-109 in treating patients with cocaine addiction… Brown & Brown (BRO) announces the acquisition of L.D.P. Consulting Group, which has annualized revs of approx $12.8 mln.
08:03 GWW reaffirms FY08 $5.65-6.00 vs $5.74 First Call consensus

08:02 KLAC KLA-Tencor: Color on quarter (41.97 )

Broadpoint Capital notes KLAC reported 2Q08 revs of $635.8 mln and EPS of $0.75. Firm believes that KLAC mgmt is taking an ultraconservative stance in terms of its near-term shipment and rev guidance, blaming a lack of near-term visibility. However, some of KLAC’s tools can have longer order-to-shipment turnaround times than those of other equipment market segments; thus, customers tend to place orders farther in advance. If visibility is as poor as the co is letting on at the moment, then the outlook is uncertain through June at least… Friedman Billings notes a weaker order environment and downward earnings revision are all indicative of the necessary capitulation that is required in this space before we can step up to take advantage of the sell-off. Firm is not concerned about the competitive pressure from the likes of AMAT, though ASML could be a stronger challenge over the next several years. Also, given the current limited tape-out activity for the 45nm design node, firm is a bit skeptical about the degree to which KLAC could outperform the front-end capital equipment industry near-term… Citi remains concerned that KLAC’s fundamentals appear to be performing only inline w/ the rest of the industry during this downturn and no better. Additionally, while a Sell is hardly justified given firm’s increasingly positive view of the sector, the cost story here with respect to opex has largely played out with the Singapore mfg transition also better discounted in expectations.
08:02 GWW prelim $1.28 vs $1.27 First Call consensus; revs $1.6 bln vs $1.60 bln First Call consensus

08:02 AME Ametek announces increase in stock repurchase authorization of $50 mln (43.39 )

08:02 MBFI MB Financial misses by $0.05 (29.12 )

Reports Q4 (Dec) earnings of $0.43 per share, excluding non-recurring items, $0.05 worse than the First Call consensus of $0.48.
08:01 LABL Multi-Color misses by $0.02, misses on revs (24.31 )

Reports Q3 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.02 worse than the First Call consensus of $0.29; revenues rose 2.8% year/year to $48.3 mln vs the $52 mln consensus.
08:01 USAK USA Truck announces Garry Lewis has been promoted to the position of Executive Vice President and Chief Operating Officer (11.60 )

08:01 S&P futures vs fair value: +8.1. Nasdaq futures vs fair value: +24.0.

Futures point to a higher start, with the Nasdaq set to outperform. A strong earnings report and outlook from Microsoft (MSFT) is the main catalyst for the buying interest. Also lending support is a report that billionaire investor Wilbur Ross is in talks to take over struggling bond insurer Ambac (ABK). In overseas markets, Hong Kong’s Hang Seng closed up 6.7% and France’s CAC 40 and Germany’s DAX are currently up more than 1%.
08:01 MBFI prelim $0.43, ex items vs $0.48 First Call consensus

08:00 LABL prelim $0.27 vs $0.29 First Call consensus; revs $48.3 mln vs $52.00 mln First Call consensus

08:00 MSFT Microsoft: Color on quarter (33.25 )

Friedman Billings notes MSFT reported a very strong quarter with upside to rev, margins, and EPS. Strength was driven across the board, as four of the five business segments exceeded their ests. The one segment that did not exceed was Server and Tools, but they believe its significant contribution to unearned rev more than offset the slight rev miss. Margins were also better than expected, with EDD showing particular strength. This marks the second consecutive quarter of profitability for EDD, and it appears well on its way to reaching its first profitable year… Citi notes for the second quarter in a row, MSFT delivered exceptional financial results exceeding street ests. Microsoft posted 30% y/y rev growth, with mgmt calling the results “outstanding” against their internal view. Firm would agree especially considering a softening macro environment that seems to be dampening the growth outlook for many industries. While the potential for slower PC unit growth in 2008 could negatively impact MSFT, its geographically diverse revenue base, strong enterprise product cycle, consumer exposure, the relatively low price point for many of its products, and efforts to combat piracy, should help insulate the company.
07:58 JAVA Sun Microsystems: Color on quarter (16.12 )

Citigroup notes that JAVA’s Dec-quarter results were in-line with last week’s preannouncement and normal seasonality. Like IBM and other enterprise-hardware companies, they note JAVA cited solid demand outside the financial services sector. The firm expects significant revenue growth acceleration in the March and June quarters, which they think should drive meaningful upside to consensus EPS beginning in the June quarter. They recommend buying the shares ahead of this.
07:58 CY Cypress Semi: Stock upside remains despite impact of moderating PC demand – Kaufman (20.42 )

Kaufman notes last night after the close, CY reported 4Q07 results, with core semiconductor rev of $206.9 mln, below their expectation of $218 mln reflecting a late quarter falloff in PC peripheral related demand. The firm reduced their tgt to $24 from $44. Their thesis of secular mix and restructuring improvement remains intact, despite the weaker fundamental outlook, and they continue to see a potential divestiture of the SPWR stake as a potential catalyst for the name.
07:56 BRNC Bronco Drilling downgraded to Market Perform from Outperform at BMO Capital (15.64 )

07:52 Bond-Insurer rescue effort faces Wall Street skepticism – WSJ

WSJ reports by exploring a bailout of the nation’s bond insurers, New York State Insurance Superintendent Eric Dinallo is tackling a problem that threatens Wall Street and ordinary investors alike. However, it might take more than govt prodding to solve the problem. At the same time, he has another potential obstacle. In a previous job, he rubbed many influential Wall Street figures the wrong way — including some he is now turning to for help… Today, some executives currently dealing with Mr. Dinallo on this latest issue said they now proceed with caution on dealing with him because of their previous dealings. It isn’t clear how bond insurers would react to a plan. Any solution could end up being expensive to the cos. If a bailout took the form of direct investment in the bond insurers, for instance, it could significantly dilute the value of the stakes held by existing shareholders. That could mean that shareholders and regulators have diverging interests. Another alternative, notes Steve Stelmach, an anaylst at FBR, might be for banks to provide backing for a newly created co that would assume some of the risks currently on bond insurers’ books — an arrangement known as reinsurance. That could free up some of the capital the insurers now use to back up those risks.
07:50 Select banks upgraded to Neutral at Merrill

Merrill upgrades Wachovia (WB), National City (NCC), and Fifth Third (FITB), and Regions Financial (RF), to Neutral from Sell.
07:48 MOG.A Moog beats by $0.02, beats on revs; raises Y08 guidance (42.19 )

Reports Q1 (Dec) earnings of $0.64 per share, $0.02 better than the First Call consensus of $0.62; revenues rose 25.3% year/year to $446 mln vs the $416.3 mln consensus. Co issues guidance for FY08, sees EPS of $2.71, compared to previous guidance of $2.69, vs. $2.72 consensus; sees FY08 revs of $1.83, compared to previous guidance of $1.785-1.805 bln, vs. $1.8 bln consensus.
07:48 OSIR Osiris Therapeutics initiated with a Buy at Piper Jaffray (12.91 )

07:47 ETFC E*TRADE: Targeting profitability in 2008 – FBR (3.48 )

Friedman Billings notes that while ETFC ppears to be close to reaching break-even, they are maintaining their Market Perform rating, as the story hinges on its ability to absorb rising credit losses from its home equity portfolio. Although the actions taken by the co in 4Q07 provide a reasonable cushion for now, the uncertainty is still too high in this environment. For investors willing to look out into a 2009 recovery period, the stock may provide an attractive (but risky) opportunity. Firm is lowering their tgt by $2 to $4.50, or 360% of their forecasted tangible book value at year-end 2008.
07:47 CAL Continental pilots prepare for potential merger – Reuters (25.46 )

Reuters reports the pilots of the co are preparing for a potential merger and plan to have a say in any deal. “We will not stand idly by and allow a change in the airline landscape without taking steps to protect the interests of our pilots,” Tom Donaldson, chairman of Continental’s pilots’ union said in a statement late Thursday. “The pilots of Continental must be key in the decision to welcome or reject any merger candidate,” he added.
07:46 CAKE Cheesecake Factory upgraded to Market Perform at FBR- tgt $18 (20.07 )

Friedman Billings upgrades CAKE to Market Perform from Underperform and raises their tgt to $18 from $17, as they see an improvement in top-line trends as early as 2H08 yet feel FY08 EPS guidance still needs to be lowered.
07:46 MOG.A sees FY08 $2.71 vs $2.72 First Call consensus; sees revs $1.83 bln vs $1.80 bln First Call consensus

07:46 WFR MEMC Elec tgt raise to $95 from $88 at Piper Jaffray (71.52 )

Piper Jaffray raises their tgt on WFR to $95 from $88 following earnings. The firm believes that stronger WFR guidance (higher 2008 revenue, margin, and EPS) confirms their longstanding thesis that 2008 will remain supply constrained. Firm notes WFR also indicated that interest for new solar contracts is robust, and surprisingly there has been interest from “so-called” new polysilicon producers presumably strapped to fulfill poly contracts. While WFR indicated demand from semiconductors is mixed, solar and the mix shift are driving growth fueled by an “on track” plant expansion. As previously highlighted, they anticipate continued 300mm unit growth on high memory fab utilization and ramping megafabs.
07:45 MOG.A prelim $0.64 vs $0.62 First Call consensus; revs $446 mln vs $416.26 mln First Call consensus

07:45 XOM Exxon Mobil: Petrobras, Shell bid to buy ExxonMobil’s Brazil assets, report says – DJ (86.00 )

DJ reports PBR, RDS.A and at least three other cos have made proposals to buy the co’s Brazilian downstream assets, the Valor newspaper reported. ExxonMobil, under the Esso brand, holds 7.2% of the Brazilian fuel distribution mk, the newspaper said, which is worth about $700 mln. Media reports in Brazil and Argentina for months have said that Petrobras is in talks to buy ExxonMobil’s South American downstream assets, but the co so far hasn’t confirmed the talks. Valor reported Petrobras and Shell were only interested in ExxonMobil’s Brazilian assets. Ultrapar Participacoes (UGP), or Ultra, and Brazilian fuel distributor AleSat, according to the newspaper, also have handed in proposals to buy ExxonMobil’s Brazilian downstream assets. Brazilian investment fund GP Investimentos has made proposals for all of ExxonMobil’s South American assets, Valor reported.
07:42 FO Fortune Brands beats by $0.01, reports revs in-line; issues Q1, Y08 guidance (68.82 )

Reports Q4 (Dec) earnings of $1.43 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $1.42; revenues rose 0.7% year/year to $2.22 bln vs the $2.21 bln consensus. Co sees Q1 EPS, ex-items, to be in the range of flat to down at a high-single digit rate. Co sees Y08 EPS, ex-items, to be in the range of up at a low-single-digit rate to down at a high-single-digit rate.
07:41 PRICE Filings, Offerings, Pricings and IPOs

Filings: Rigel Pharms (RIGL) files for a common stock shelf offering… Double-Take Software (DBTK) files for a 3.18 mln share common stock offering by selling shareholders… Offerings: MiddleBrook Pharma (MBRK) announces an 8.75 mln share common stock private placement offering priced at $2.40/share… Petrohawk Energy (HK) announces a 15 mln share common stock secondary offering… Pricings: Anworth Mortgage (ANH 8.88) prices a 14.3 mln share common stock offering at $8.75/share… IPO: RiskMetrics (RMG), a provider of risk management and corporate governance products, prices its 14 mln share IPO at $17.50/share, compared to a forecast range of $17-$19/share… IPC The Hospitalist Co (IPCM), a provider of hospitalist services in the United States, prices its 4.7 mln share IPO at $16/share, right in the middle of the $15-$17 forecast range.
07:41 Friedman Billings believes new catalysts to buy casual dining

Friedman Billings notes Congressional leaders reached a tentative deal for tax rebates of $300 to $1,200 per family to accelerate a sluggish economy and promote consumer spending. In 2003, the last time the federal government provided a similar rebate (or child-tax credit), casual dining saw a modest benefit to traffic and same-store sales trends. Firm expects all casual diners to see stronger comp trends in 2H08, as the checks are received in May or June and see this as a catalyst to buy casual dining coms. Firm reiterates their Outperform rating on CPKI, the most-attractive casual-dining company, in firm’s view. Others who will benefit: EAT, CAKE, PFCB, and RRGB.
07:41 IACI InterActive, Liberty wage two-way legal battle – WSJ (24.73 )

WSJ reports months of simmering tension between media mogul Barry Diller and his longtime backer, John Malone, boiled over into a two-way legal battle that could determine the future control of major parts of Mr. Diller’s business empire, IAC/InterActiveCorp. Mr. Malone’s Liberty Media (LINTA), which owns a majority voting stake in IAC, yesterday filed suit in Delaware Chancery Court accusing Mr. Diller of trying to mount a “corporate coup” with a planned restructuring that would dilute Liberty’s control over several of IAC’s major assets, which include Ticketmaster and the HSN home-shopping network. Liberty’s suit seeks to block Mr. Diller from completing the spinoffs of several units on terms that would dilute Liberty’s voting power. Liberty’s suit follows IAC’s filing of a suit against Liberty in the same court earlier this week, in which IAC sought the right to complete the breakup on its terms.
07:40 FO sees Q1 EPS flat to down at a high single digit rate

07:40 FO is targeting Y08 EPS up low-single digits to down at a high-single digit rate

07:39 FO prelim $1.43 vs $1.42 First Call consensus; revs $2.22 bln vs $2.21 bln First Call consensus

07:38 MSCC Microsemi: Strong quarter and guidance; like expected earnings growth, execution, and exposure – FBR (20.92 )

Friedman Billings notes MSCC eported solid financial results again, demonstrating the steady and profitable nature of its business model. December sales were in line with expectations and EPS was a penny ahead. Firm raises their EPS ests slightly to $1.35 for CY08, vs. their $1.30 prior est. Big picture–they like MSCC’s expected earnings growth, execution track record, and exposure to very attractive ‘high-reliability’ end markets, including the U.S. military, commercial aerospace, and medical instrumentation.
07:38 SPWR Sunpower buy with two fists – ThinkEquity (69.21 ) -Update-

ThinkEquity says they are perplexed by the market’s reaction to SunPower’s 4Q performance. The firm says after all, Y/Y revenue growth of 201%, Y/Y earnings growth of 112% and, more importantly, an outlook for Y/Y revenue and earnings growth, each north of 60% for 2008, suggest that SunPower’s business is healthy, strong, and well positioned to take advantage of impending polysilicon availability. The firm says when it comes to vertical integration, only downstream makes sense, and they give credit to SunPower management for seeing this and acting boldly over a year ago. Firm reits Buy and $155 tgt.
07:37 MHP McGraw-Hill tgt upped to $59 at Citigroup (42.70 )

Citigroup raises their MHP tgt to $59 from $55.50, saying the stock is still their top pick. They note the diversity of businesses and financial services revenue beyond transactional ratings revenue helped MHP deliver upside to revenue estimates.
07:36 Airwaves draw high initial bids – Reuters

Reuters reports that top bidders put up a total of almost $2.78 bln Thursday in the opening rounds of the Federal Communications Commission’s auction of U.S. government-owned airwaves. The figure represents the highest bids received for five blocks of spectrum at the beginning of the auction, which is eventually expected to net the federal government at least $10 bln. Companies qualified to bid include major carriers AT&T (T) and Verizon Wireless (VZ), as well as possible new competitors such as Google (GOOG), EchoStar Communications and Cablevision Systems (CVC). Analysts say the major carriers could use the new spectrum to offer consumers more advanced services such as broadband access via mobile phones and wireless broadband to laptop computers.
07:36 ARBA Ariba: Mixed Q1; disappointing revenue guidance; trimming tgt (10.11 )

Roth notes yesterday after market, ARBA posted mixed Q1 results; rev of $77 mln was $1 mln shy of their est but EPS of $0.07 was two cents above and the firm is lowering their tgt to $14 from $15. Guidance was somewhat disappointing for rev though in line for full-year EPS; Ariba lowered expectations for rev, free cash flow, and Q2 EPS. The firm notes subscription backlog growth was a positive highlight; backlog was up 12% sequentially and up 63% YoY, and ARBA nudged up its FY08 guidance for subscription rev.
07:35 CAT Caterpillar reports EPS in-line; reaffirms FY08 guidance (65.25 )

Reports Q4 (Dec) earnings of $1.50 per share, in-line with the First Call consensus of $1.50; revenues rose 10.0% year/year to $11.36 bln vs the $11.79 bln consensus. CAT reaffirms FY08 guidance, sees sales and revenues increasing 5 to 10 percent and profit per share increasing 5 to 15 percent from 2007. Co said, “We’re starting 2008 with a very strong order backlog, particularly for larger products like industrial gas turbines, large reciprocating engines and mining trucks… While we expect anemic growth in the U.S. economy, we continue to see positive conditions for our sales in most of the rest of the world.
07:34 URBN Urban Outfitters: Channel checks still strong in Jan; expect major YoY margin expansion in Q4 – FBR (27.16 )

Friedman Billings notes their January checks have have featured consistently strong selling activity at both the Urban Outfitters and Anthropologie divisions. We estimate that the consolidated comp quarter to date is at least the +9% that the company reported for the November/December combined period and has possibly accelerated slightly. At the Urban Outfitters division, we believe the company has been largely successful in moving through clearance product; we expect gross margins at the Urban Outfitters division to be flattish for 4Q07. Given the continued comp performance, firm increases their 4Q07 EPS est from $0.28 to $0.30, vs the Street est of $0.28.
07:32 CAT reaffirms FY08 guidance, sees sales and revenues increasing 5 to 10 percent and profit per share increasing 5 to 15 percent from 2007.

07:32 Ex-Fed Gov Meyer says US to escape recession, back to trend in 2H – DJ

DJ reports former Federal Reserve Governor Laurence Meyer said he expects the U.S. economy to escape a recession and move back to trend-like growth in the second half of the year. In remarks to the National Economists Club, he said gross domestic product probably grew just 1% in the fourth quarter of 2007 and will probably match that pace this quarter before recovering to 2.5% growth in the second quarter and 2.75% in the second half of the year, which would be line with the economy’s underlying potential. Meyer, now with the forecasting co Macroeconomic Advisers, admitted that his forecast is “more optimistic” than most, though he also said the risk of recession is somewhere between one-third and 40%. Two factors in particular should help the economy recover, he said. For one, the drag from housing should dissipate around the middle of the year, and as that drag goes away, housing should add about one percentage point to GDP growth. Automobile production should also firm, Meyer said. Meyer said he expects the Fed to lower the federal funds target rate another 50 basis points to 3% when it meets next week to offset the “heightened vulnerability” the economy faces from wider credit spreads and higher unemployment.
07:32 KNSY Kensey Nash reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs below consensus (27.65 )

Reports Q2 (Dec) earnings of $0.21 per share, in-line with the First Call consensus of $0.21; revenues rose 13.3% year/year to $19.6 mln vs the $19.7 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.25-0.27 vs. $0.26 consensus; sees Q3 revs of $20.3-21.0 mln vs. $21.75 mln consensus.
07:32 CRXX Combinatorx: Some slight shift to data timeline but core programs intact; tgt cut to $20 – Lazard (4.39 )

Lazard notes that at the CombinatoRx analyst day today, mgmt provided an overview of upcoming milestones for 2008. 2008 should be an eventful year for the co, as clinical results could lead to potential product-specific partnerships. Firm views CRx-191 data in psoriasis (1Q08), CRx-102 data in osteoarthritis (2H08) and CRx-141 in type 2 diabetes (2H08) as meaningful catalysts. Firm notes lead compound CRx-102 remains on track for Phase IIb results in OA 2H08; Phase IIb results in RA could slip slightly from late 2008 to early 2009. Firm anticipates CRX-191 Phase IIa results for psoriasis this quarter. Firm cuts tgt to $20 from $22.
07:31 CAT prelim $1.50 vs $1.50 First Call consensus; revs, excluding financial products $11.36 bln vs $11.79 bln First Call consensus

07:31 WSTL Westell Tech: Opporunities in F2009; near-term very challenging – Baird (1.54 )

Baird notes WSTL results were slightly above ests but FQ4 guidance lower due to contract timing with AT&T. Mgmt believes new contracts will contribute significantly to revenue in F2009, though volumes will take a few quarters to ramp and remain difficult to model. Large new opportunities at Verizon and a top MSO are promising.
07:31 CALLS Early Research Calls V

Upgrades: J.P Morgan upgrades Assured Guaranty (AGO 21.18) to Overweight from Neutral… Merrill upgrades Lukoil (LUKOY 70.85) to Buy from Neutral… Morgan Stanley upgrades Corinthian Colleges (COCO 7.91) to Equal Weight from Underweight… Piper Jaffray upgrades Compuware (CPWR 6.67) to Buy from Neutral… Piper Jaffray upgrades SunPower (SPWR 69.21) to Buy from Neutral… Piper Jaffray upgades Applied Biosystems (ABI 29.40) to Buy from Neutral… Piper Jaffray upgrades NYSE Euronext (NYX 76.53) to Buy from Neutral… Thomas Weisel upgrades Pinnacle entertainment (PNK 17.72) to Overweight from Market Weight.
07:31 CHINA CDC Corp provides update on insider buying (4.00 )

Co announces that directors and executives have purchased a net amount of ~632,825 shares since the co’s Q3 earnings release on December 14, 2007. This includes additional purchases made by the CEO through a 10b5-1 plan since the last update on insider buying issued by CDC Corporation on December 28, 2007. Certain directors and executives, including the CEO, have entered into 10b5-1 trading plans which facilitate purchase and sale of the common shares and allow trading in the shares during trading blackout periods through pre-arrangements with a broker, based upon specified guidelines and parameters set forth in the trading plans.
07:31 AMGN Amgen: Beats expectations with stabilizing ESA sales; ODAC is key overhang – Rodman & Renshaw (46.12 )

Rodman & Renshaw notes AMGN reported 4Q07 non-GAAP EPS of $1.00, in line with their est of $1.00 and above the Street consensus of $0.93. On March 12, 2008, the committee will discuss the BLA for NPlate (romiplostim) for the treatment of ITP. The following day on March 13, the committee will discuss the risks of ESA use in cancer by reviewing the cumulative data in the PREPARE and GOG studies. Aranesp and Epogen will be discussed in addition to Johnson & Johnson’s (JNJ) Procrit and Hoffman-La Roche’s (RHHBY) Mircera. Despite an impressive 4Q07, firm would continue to remain on the sidelines through the ODAC panel meeting March.
07:31 KNSY sees Q3 $0.25-0.27 vs $0.26 First Call consensus; sees revs $20.3-21.0 mln vs $21.75 mln First Call consensus

07:30 Communications Technology Industry Update: Earnings data points from AT&T and other suggest continued strong investment trends – Merriman

Merriman says early returns from the Communications Technology sector are encouraging. Led by yesterday’s report from the world’s largest carrier, AT&T (T), and supported by recent reports from the likes of larger equipment suppliers such as Juniper Networks (JNPR), Nokia Siemens Networks and Motorola (MOT), results and commentary point to continued strength in overall carrier infrastructure investment, traffic growth and new broadband service rollouts. At a time when the market has priced in considerable negative fallout in the sector stemming from economic weakness, firm believes these early results serve to underscore their view that the video-driven IP network traffic growth and carrier competition that have driven IP, optical and access infrastructure spending over the last two years, remain undiminished at present and likely to be resistant to economic pressure.
07:30 KNSY prelim $0.21 vs $0.21 First Call consensus; revs $19.6 mln vs $19.65 mln First Call consensus

07:30 SPWR Sunpower: 4Q07 results; top and bottom line exceeded – Merriman (69.21 )

Merriman notes the solar photovoltaics market has grown by more than 30% in each of the last eight years. The solar P.V. industry grew 41% to 2.5 GW of new solar PV manufacturing output in 2006 from approx 1.8 GW in 2005 and is expected to grow to $69.3 bln in 2016 from $15.6 bln in 2006. Firm believes SPWR is positioned to quickly leverage its manufacturing capacity and system integration business, becoming one of the top 10 solar PV manufacturers globally over the next two years.
07:29 MIVA MIVA agrees to settle class action litigations with Plaintiffs in the Lane’s Gifts and Collectibles, Payday Advance Plus and Cisneros Cases (1.74 )

Co announces it has entered into a settlement agreement with the plaintiffs in the Lane’s Gifts and Collectibles class action litigation regarding alleged click fraud pending in the Miller County Circuit Court, Arkansas. The settlement agreement is subject to various conditions, including, but not limited to, notice to the class and final approval by the Arkansas court, which granted preliminary approval to the settlement at a hearing held on Jan 23, 2008. If approved, the agreement provides that all claims against MIVA and its subsidiaries, including indemnification obligations to a co-defendant, will be dismissed without presumption or admission of any liability or wrongdoing. Pursuant to the agreement, MIVA would establish a settlement fund of $3,936,812, of which up to $1,312,270 would be in cash for payment of plaintiffs attorneys fees and class representative incentive awards and the balance would be in advertising credits relating to the class members’ advertising spending with MIVA during the class period. MIVA has also entered into a settlement agreement with the plaintiffs in the Cisneros class action litigation pending in the Superior Court of the State of California, County of San Francisco, regarding advertising for internet gambling. The agreement provides that all claims against MIVA will be dismissed without presumption or admission of any liability or wrongdoing. Pursuant to the agreement, MIVA would pay a total of $15,000 to establish a settlement fund to be used to educate and assist the general public regarding excessive gambling and MIVA shall maintain its current policy regarding gambling advertisements for a period of four years.
07:29 BCS Barclays sees tougher 2008 as growth opportunity – Reuters (39.19 )

Reuters reports the co sees tougher mkt conditions in the next year as an opportunity for its investment banking arm to grow and invest, particularly in the United States, the bank’s president said. Barclays Capital has seen spectacular growth over the past decade, but the bank has yet to match its strong European and Asian debt capital mkts presence in the United States, where it competes with Wall Street’s giants. “2008 brings one very important change to our priority list, and that’s the United States. It is difficult to get into the home market of the U.S bulge-bracket cos, but as we go into 2008, so many of them are retrenching,” said Bob Diamond, president of Barclays and head of its investment banking arm. Valuations have been battered, but Diamond said Barclays was unlikely to grow its U.S. presence by acquisitions as prices remained too high for the risks involved in a deal. Barclays’ investment banking arm has seen strong growth in its Asian and commodities business, and Diamond said he saw that trend continuing, even if oil and other commodity prices come off the boil in 2008.
07:29 TPX Tempur-Pedic: Solid double-digit rev growth in difficult retail environment – Merriman (24.91 )

Merriman notes TPX reported 4Q07 rev of $289 mln with EPS of $0.52. Firm notes TPX continues to dominate the specialty category and take market share. They believe consumers increasingly consider specialty mattresses superior comfort solutions. This secular trend may last for many years.
07:28 MSTR MicroStrategy: 4Q preview; volatility possible – Broadpoint Capital (72.00 )

Broadpoint Capital expects MSTR to report mostly in-line 4Q results of roughly $103 mln rev (+11%) and $1.75 EPS (+4%). Firm’s checks at MicroStrategy World last week sounded generally OK to somewhat upbeat, while other indications suggest the co refused discounts in some cases, which may have pushed some business into 1Q08. While this is difficult to assess, firm expects a roughly in-line 4Q. While firm expects volatility around the 4Q earnings report and they continue to carry a very cautious stance on macroeconomic demand, firm notes that MSTR shares are close to our expected support level of $60-$70.
07:28 MRK Merck and Schering-Plough strongly object to mischaracterizations about the ENHANCE trial (49.56 )

MRK and Schering-Plough (SGP) say that they strongly object to mischaracterizations about the ENHANCE trial. “While the ENHANCE trial was time consuming and took longer than originally anticipated to complete, our companies acted with integrity and good faith in connection with the trial. We took numerous actions to assure the quality of the reading of the ultrasound images.”
07:28 GIGM GigaMedia: Sell-off has created another buying opportunity – Roth (15.72 )

Roth believes the recent broad market sell-off and weakness in GIGM shares has created a very attractive entry point for investors sifting through the wreckage of the past month. While GIGM shares have dropped dramatically over the last two quarters, the co’s prospects and near-term fundamentals have never been stronger. The firm also highlights that the co has absolutely no exposure to the U.S. economy with revenue coming primarily from European and Asian mkts.
07:28 ESIO Electro Scientific downgraded to Hold at Brean Murray- tgt $17.50 (16.69 )

Brean Murray downgrades ESIO to Hold from Buy and cuts their tgt to $17.50 from $27 following earnings. The firm says Electro Scientific posted 6% sequentially lower sales and flat bookings in 3QFY08 (December). Strength in semiconductor orders was offset by weakness in interconnect and passive bookings. The firm also sayd due to the uncertainty surrounding semiconductor capital spending, where most forecasts are calling for 10-15% YoY declines, and Electro Scientific’s lowered expectations for the March quarter.
07:26 SNE Sony CEO says sales going well, watching yen – Reuters (47.49 )

Reuters reports the co is performing well but is concerned about the strength of the Japanese yen, Sony Chief Executive Howard Stringer said. There is always an impact on exports. The yen is volatile … We watch it with some anxiety,” Stringer told Reuters at the World Economic Forum. Stringer said Sony’s consumer electronics business was holding up well, despite the U.S. slowdown, with Playstation 3 (PS3) sales improving. Electronics operations account for nearly three quarters of Sony’s total sales. “PS3 has now gone past XBox on the Christmas market. It’s moving into its own as it gets into higher bandwidth … PS3 is out of the woods and beginning to hold its own,” he said.
07:22 ELP Co. Paran. de Energ upgraded to Outperform from Peer Perform at Bear Stearns (14.06 )

07:21 TTM Tata Motors profiled in New America section of IBD (17.74 )

IBD reports the co unveiled its natty, five-seat, 30-horsepower Tata Nano at the recent Auto Expo in New Delhi. Priced at $2,500, it will be the world’s cheapest car. Tata might take over Ford’s struggling premium brands, for about $2 bln, sometime this quarter. If anyone can pull off making a go of two polar opposite businesses, Tata can, observers say. The big question for Tata’s Nano is how soon it will become profitable. At $2,500 for the no-frills basic model, margins likely will be slim, especially considering the high price of raw materials, such as steel. But Tata is working on line extensions with added amenities, which would push up prices. Also, fiscal incentives from the West Bengal govt, where the Nano plant is located, “will materially alter the viability and expected financial returns from the project,” wrote Deutsche Bank analyst Srinivas Rao. At the other end of the spectrum, cost savings will be key to making Ford’s now-struggling luxury car business in England more profitable, analysts say. Tata dominates the commercial vehicle mkt in India. In passenger cars, Tata is a distant second to mkt leader Maruti Suzuki. Tata Motors has said that a slowdown in its car sales over the past several months was due in large part to higher interest rates on auto loans. But analysts noted that unlike rivals, Tata also came up short on new products. That’s expected to change in the coming year with the rollout of new models and a make-over of its top selling Indica compact car. Analysts polled by Thomson Financial estimate Tata Motors’ earnings this fiscal year ending in March will grow only 10%, to $1.38 a share. They expect profit the next year to grow 20%.
07:21 ATPG ATP Oil & Gas upgraded to Sector Perform from Underperform at RBC (36.27 )

07:18 BOFL Bancshares Of Florida downgraded to Neutral from Buy at Suntrust- following Q407 EPS that missed consensus expectations (10.75 )

07:17 WIRES On The Wires

Vineyard National Bancorp (VNBC) announces resignation of president and CEO Norman Morales… Encore Acquisition (EAC) announces year-end reserves and production with proved oil and natural gas reserves as of December 31, 2007 were 231 million barrels of oil equivalent, consisting of 189 million barrels of crude oil, condensate, and natural gas liquids and 256 billion cubic feet of natural gas.
07:15 DRV Debt Resolve appoints Kenneth Montgomery Chief Executive Officer (0.80 )

Co announces that Kenneth Montgomery has been appointed CEO, effective Feb 16, 2008, and that its Co-Chairman and CEO, James Burchetta, has elected to step down as CEO, as planned after the one-year anniversary of the initial public offering. Burchetta will remain an active member of the senior management team and has been appointed Chairman of the Board & Founder. He will continue to oversee investor relations, corporate strategy and product development. DRV also announces that its CFO, David Rainey, has been named President.
07:15 CYN City National downgraded to Peer Perform from Outperform Bear Stearns (60.00 )

07:09 RDY Dr. Reddy’s reports Q3 resv +8% yr/yr to $313 mln (15.87 )

07:09 MEOH Methanex upgraded to Buy from Neutral at UBS (24.07 )

07:08 MCHP Microchip upgraded to Outperform at Credit Suisse- tgt $36 (27.65 )

Credit Suisse upgrades Microchip Tech (MCHP 27.65) to Outperform from Neutral and raises their tgt to $36 from $33 following earnings. The firm believes business has bottomed with bias to the upside for the balance of 2008. MCHP is a defensive play, with little to no end market or customer concentration, typical peak to trough revenue declines of ~4% (currently at ~2.5%), and a 4.3% dividend yield.
07:05 HOG Harley-Davidson misses by $0.04, beats on revs; issues Y08 guidance (40.12 )

Reports Q4 (Dec) earnings of $0.78 per share, $0.04 worse than the First Call consensus of $0.82; revenues fell 7.7% year/year to $1.39 bln vs the $1.34 bln consensus. Co expects to ship fewer Harley-Davidson motorcycles than it expects its worldwide dealer network to sell in Y08. Co also expects moderate revenue growth, lower operating margin, and EPS up 4-7% yr/yr, which equates to approx $3.89-4.00 vs $3.79 consensus. In Q1, co expects to ship 68-72k Harley-Davidson motorcycles, compared to 67,761 units in yr ago period.
07:05 IDXX IDEXX Labs reports EPS in-line, beats on revs; guides FY08 EPS in-line, revs in-line (55.60 )

Reports Q4 (Dec) earnings of $0.40 per share, in-line with the First Call consensus of $0.40; revenues rose 27.5% year/year to $245 mln vs the $235.4 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.83-1.87 bln vs. $1.86 consensus; sees FY08 revs of $1.05-1.07 bln vs. $1.04 bln consensus.
07:03 IMRX ImaRx Therapeutics receives Urokinase lot release approval with extended expiration dating (1.55 )

Co announces that the FDA has approved the co’s most current lot release request for urokinase drug product. This is the first lot to be released with extended expiration dating. Urokinase, ImaRx’s first commercially available FDA-approved product, is a thrombolytic or clot-dissolving agent indicated for the treatment of acute massive pulmonary embolism.
07:02 IDXX guides FY08 $1.83-1.87 vs $1.86 First Call consensus; sees revs $1.05-1.07 bln vs $1.04 bln First Call consensus

07:02 PRSP Prosperity Bancshares reports EPS in-line (27.27 )

Reports Q4 (Dec) earnings of $0.53 per share, in-line with the First Call consensus of $0.53.
07:01 IDMI IDM Pharma announces non-binding opinion of the European Committee for medicinal products for human use that Mifamurtide provides a possible clinical benefit in survival (0.61 )

Co announces that it recently presented to the Committee for Medicinal Products for Human Use regarding the Marketing Authorization Application for mifamurtide for the treatment of patients with non-metastatic, resectable osteosarcoma. The co attended an oral explanation hearing before the C.H.M.P. on Jan 23, 2008. The C.H.M.P. considered that the data presented by the co suggested a possible clinical benefit in terms of survival. However, the C.H.M.P. requested clarification of the existing data in order to gain assurance about the quality of the data before drawing any final conclusions from the data presented. In addition, the co is required to address a number of remaining questions relating to chemistry, manufacturing and controls. As a result of the C.H.M.P.’s non-binding opinion, the co was granted a clock stop, or time extension, to allow the co additional time to respond to all the remaining questions regarding the M.A.A. The co now expects to receive a final opinion from the C.H.M.P in Q3 and a final decision from the European Commission in 4Q08.
07:01 PRSP prelim $0.53 vs $0.53 First Call consensus

07:01 IDXX prelim $0.40 vs $0.40 First Call consensus; revs $245 mln vs $235.42 mln First Call consensus

07:01 ACET Aceto guides below single estimate for Q2 (7.55 )

Co issues downside guidance for Q2 (Dec), sees EPS of $0.03-0.04 vs. $0.07 single estimate
07:00 ANH Anworth Mortgage prices a 14.3 mln share common stock offering at $8.75/share (8.88 )

07:00 HOG prelim $0.78 vs $0.82 First Call consensus; revs $1.39 bln vs $1.34 bln First Call consensus

06:57 CALLS Early Research Calls IV

Upgrades: Suntrust upgrades Choicepoint (CPS 32.48) to Neutral from Reducebased on valuation following Q4 results… ThinkEquity upgrades ITT Educational (ESI 88.62) to Buy from Accumulate… ThinkEquity upgrades Vignette (VIGN 14.34) to Buy from Accumulate. Downgrades: Piper Jaffray downgrades Celera Group (CRA 15.69) to Neutral from Buy… Citigroup downgrades Fairchild Semi (FCS 13.41) to Hold from Buy… JP Morgan downgrades Royal Dutch Shell (RDS.A 73.18) to Underweight from Neutral… Keefe Bruyette downgrades Synovus (SNV 12.05) to Market Perform from Outperform. Miscellaneous: Stanford initiates Verisign (VRSN 32.99) with a Hold… William Blair initiates FTI Consulting (FCN 56.91) and GFI Group (GFIG 85.89) with Outperforms.
06:56 MBRK MiddleBrook Pharma announces an 8.75 mln share common stock private placement offering priced at $2.40/share (2.99 )

06:51 AMP Ameriprise Financial reports Q4 EPS of $1.16, ex-items, vs $1.02 in yr ago period; reports net revs up 8% yr/yr to $2.3 bln (50.23 )

06:50 CALLS Early Research Calls III

Miscellaneous: Standpoint Research initiates Laboratory Corp. of America (LH 73.08) with a Hold and sets a 3-yr tgt of $90-$100, as they favor the co’s licensing agreement with Duke University Medical Center to commercialize Duke’s new blood-based assay (test) for early detection of lung cancer, their role as contracted lab provider in all of Cigna’s HC markets, and cost cutting initiatives yet have concerns with improving margins which are at all-time highs, pricing pressure in the clinical lab business, cost-effective point-of-care equipment that can be used by the patient themselves without requiring the services of labs and an insignificant amount of cash flow used for R&D… Jefferies assumes Circuit City (CC 4.96) with a Hold and sets a $3.50-$4.50 tgt, as they remain concerned about the continued profit fallout from overwhelming changes to operations this past year as well as poor employee morale, mgmt turnover and vendor support… Jefferies assumes Best Buy (BBY 47.00) with a Hold and sets a $45-$47 tgt, based on investor concerns regarding decelerating growth in key product cycles and pressure on big ticket consumer purchases that persist… Thomas Weisel initiates Micrel (MCRL 5.60) with an Overweight… RBC initiates Ceva (CEVA 9.62) with an Outperform.
06:41 HK Petrohawk Energy announces a 15 mln share common stock secondary offering (15.82 )

06:36 CALLS Early Research Calls II

Upgrades: Citigroup upgrades Textron (TXT 51.26) to Buy from Hold… Barid upgrades OmniVision Technologies (OVTI 14.16) to Outperform from Neutral and maintains their $22 tgt, based on a valuation that already reflects a slowdown in the China mobile phone market and April-quarter seasonality while checks indicate OmniVision has recently gained market share at large module houses for notebook applications… Friedman Billings upgrades Emulex (ELX 14.72) to Outperform from Market Perform and raises their tgt to $25 from $22, based on valuation following Q208 EPS that exceeded consensus estimates along with the co’s highest quarterly revenue in history. Downgrades: Merriman downgrades Sonic Foundry (SOFO 1.22) to Neutral from Buy, following the preannouncement of Q108 results that included revenue and EPS below firm estimates… GARP Research downgrades Cabot Microelectronics (CCMP 35.82) to Neutral from Buy, following Q108 revenue and EPS that exceeded consensus estimates yet have concerns over the long-term growth and margin characteristics their business holds… JP Morgan downgrades Frontier Airlines (FRNT 2.97) to Underweight from Overweight… Citigroup downgrades AT&T (T 35.75) to Hold from Buy… Jefferies downgrades Bronco Drilling (BRNC 15.64) to Hold from Buy and maintains their $17 tgt, based on valuation following the announcement that BRNC will merge will Allis-Chalmers
06:32 CALLS Early Research Calls I

Upgrades: Friedman Billings upgrades Bronco Drilling (BRNC 15.64) to Market Perform from Underperform and raises their tgt to $16.33 from $13, following the announcement that Allis-Chalmers Energy plans to acquire BRNC for a 21.8% premium and believe the merger is highly likely with minimal debt obstacles posed to Allis-Chalmers… KeyBanc upgrades Federal Signal (FSS 10.18) to Buy from Hold, as they believe shares could benefit from catalysts including the appointment of a new Chief Executive, initial traction stemming from the appointment of the President at E-One and the potential for dealership and market share gains resulting from troubles at privately-owned American LaFrance & Seagrave… Bear Stearns upgrades Tenneco (TEN 24.67) to Outperform from Underperform… Bear Stearns upgrades ScanSource (SCSC 25.70) to Peer Perform from Underperform… Bear Stearns upgrades CKX (CKXE 8.90) to Outperform from Peer Perform… Morgan Stanley upgrades Halliburton (HAL 32.37) to Overweight from Equal-weight… JP Morgan upgrades AirTran (AAI 7.81) to Overweight from Neutral.. Deutsche Bank upgrades Arcelor Mittal (MT 63.80) to Buy from Hold… Citigroup upgrades Arcelor Mittal (MT 63.80) to Buy from Hold…
06:31 HK shares rebound sharply as Chinese financials lead; Sensex ends up 1,140pts

Japanese shares surged more than 4% on Friday to their biggest one-day gain in nearly six years, lifted by short-covering on growing confidence that a U.S. tax rebate and bond insurer rescue will have a positive impact. In three consecutive positive days the Nikkei has recouped 7% of its losses for this year, though it still is down roughly 11%. On Tuesday it had its biggest one-day loss since the session just after the Sept. 11, 2001 attacks in the United States. The benchmark Nikkei closed up 4.1% and the broader TOPIX finished up 4.7%, both marking their biggest one-day gains since March 4, 2002 -when both surged on a government crackdown on short sellers. Hong Kong stocks tracked a jump in global equities on Friday as gains on Wall Street boosted investor confidence, prompting a broad rally, with mainland financials leading the gains. The benchmark Hang Seng Index closed up 6.7%, or 1,583.10 points, at 25,122.37, for a 0.3 percent weekly loss… The Sensex opened with a huge positive gap of 282 points at 17,504. Considerable buying support saw the index move higher as the day progressed. The index zoomed to an intra-day high of 18,406 towards the closing bell. The Sensex finally ended with a record gain of 1,140 points (6.6%) at 18,362 – the first-ever, four-digit single day gain for the index. (Reuters, Business Standard)
06:30 European shares rise on U.S. hopes, banks, techs

Banks, technology and commodity stocks got European stock markets off to a punchy start on Friday, as a speedy agreement on a U.S. economic stimulus package helped lift shares worldwide. At 0924 GMT, the FTSEurofirst 300 index of top European shares was up 1.1% at 1,345.15 points, adding to a 5.4% leap on Thursday, and tracking sharp gains in Asia… Britain’s FTSE was up 1.1%, Germany’s DAX up 2.2% and France’s CAC up 1.3%.
06:23 S&P futures vs fair value: +6.0. Nasdaq futures vs fair value: +23.0.
06:23 European Markets

FTSE…5927.00…+51.20…+0.9%. DAX…6915.09…+94.02…+1.4%.
06:23 Asian Markets

Nikkei…13629.16…+536.38…+4.1%. Hang Seng…25122.37…+1583.10…+6.7%.
06:18 JOUT Johnson Outdoors reports Q108 results (20.22 )

Reports Q1 (Dec) earnings of ($0.30), excluding discontinued operations, $0.09 worse than the First Call consensus (single analyst) of a loss of ($0.21); revenues rose 6.4% year/year to $75.97 mln vs the $75.30 mln consensus.
06:10 COIN Converted Organics acquires United Organic Products and Waste Recovery Industries (9.94 )

Co announces they have acquired the assets of United Organic Products, LLC as well as the assets, including the intellectual property, of Waste Recovery Industries, LLC. Financial terms weren’t disclosed.
06:08 WFT Weatherford beats by $0.03, beats on revs (60.14 )

Reports Q4 (Dec) earnings of $0.99 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.96; revenues rose 21.3% year/year to $2.19 bln vs the $2.15 bln consensus.
05:54 Gold hits all-time high – Financial Times

Financial Times reports gold prices on Friday jumped to a new all-time high above $920 a troy ounce as mining companies in South Africa halted their operations because of acute power shortages. Wall Street’s bets on further US interest rates cuts, the weakness of the US dollar and oil prices rising above $90 a barrel are also contributing to the rally in precious metal prices, traders in London said. Spot bullion in London rose to a record of $921.30 an ounce, well above the peak of $914 an ounce set earlier this month. AngloGold Ashanti (AU), Gold Fields (GFI) and Harmony (HMY) said they had stopped all gold mining after they were informed by state-owned power utility Eskom that it could not guarantee power supply to their operations in South Africa. Miners have to suspend activity when there is a risk to a mine’s power supply, because they depend on it to pump water out of deep mines and provide ventilation. The Chamber of Mines in Johannesburg said in a statement that the decision to keep underground workers on the surface “will have an impact on productivity as well as on operating costs.” “It is not clear when the workers will resume their underground shifts,” it added.
05:49 Carlsberg, Heineken agree on GBP 7.8 bln bid and break up of Scottish and Newcastle – Reuters

Reuters reports Carlsberg and Heineken on Friday finally agreed a cash bid of 7.8 bln pounds ($15.3 bln) to buy and break up Scottish and Newcastle to boost the Danish brewer’s position in Russia and the Dutch group’s presence in western Europe. Carlsberg and Heineken said they had agreed a deal at 800 pence a S&N share which was recommended by the board of S&N after a three-month takeover saga. Analysts said the long-awaited deal would be positive for both the bidders as they moved to split up the British co. The deal comes as brewers look to cut costs as input prices for malting barley and aluminum cans have risen and to create a bigger platform for their top brands. It also puts pressure on other brewers such as Molson Coors (TAP) and Foster’s to perform better or look for similar deals, analysts said.
05:44 Cerberus’s rocky road – WSJ

The Wall Street Journal reports the flagging fortunes of Cerberus’s biggest acquisitions — Chrysler LLC and GMAC LLC — and its sudden withdrawal from a $4 bln deal to acquire United Rentals (URI) have left open the question of whether the investment fund has stumbled. “I’m not stressed,” said Mark Neporent, the firm’s No. 2 executive. In a rare interview at the firm’s headquarters, Mr. Neporent dismissed any suggestion Cerberus was struggling or battening down the hatches. He said the firm has ample liquidity to do any deal that makes sense for its investors. If anything, Cerberus is slowly emerging out of its shell. The firm, which has $26 bln under management, never commits more than 5% of the money in any one of its numerous funds to any single investment, Mr. Neporent said. In other words, even if Chrysler and GMAC fail, which Mr. Neporent insists is highly unlikely, the financial exposure of Cerberus’s funds would be limited. In 2007, Cerberus returned on average about 19% to its investors. Cerberus said Chrysler has ample liquidity and isn’t only meeting but, in many cases, exceeding its financial targets. Mr. Neporent said the firm remains “extremely enthusiastic” and had anticipated the car maker’s losses. He said it was too early to judge the success of the deal, and it will take years before one can judge their strategy.
05:38 BHP Coal shortage at BHP may lift steel price – WSJ (62.29 )

The Wall Street Journal reports BHP Billiton (BHP) said it won’t be able to meet its commitments to ship Australian-mined coal used for steel, potentially putting further upward pressure on steel prices. The miner and its partner, Japan’s Mitsubishi Corp., declared force majeure on coking coal shipments from Queensland mines, which essentially means that events outside its control have affected its ability to meet contract obligations. The impact is likely to be felt hardest in Asia’s steel spot markets, said Aldo Mazzaferro, steel analyst for Goldman Sachs. Further effects would depend on how long the stoppage lasts and whether China either curbs exports or increases imports to keep itself supplied. Asian steelmakers, like China’s Baosteel Group, couldn’t be reached. Coal prices outside Asia could also be affected. U.S. spot coal prices were soft in the first three quarters of 2007 because of big stockpiles but began firming in the fourth quarter, increasing 10% to 30% depending on the type of coal and where it was mined.
05:25 Morning Newspaper Headlines: BHP – TAP – AU/GFI

WSJ: Coal shortage at BHP (BHP) may lift steel price… Cerberus’s rocky road. Reuters: Carslberg, Heineken agree on GBP 7.8 bln bid and break up of Scottish and Newcastle. Financial Times: Gold hits all-time high (AU, GFI).
04:56 GFI Mining and processing suspended at all S. African operations (14.57 )

Co reports all mining activities have been suspended at its South African Operations. This is due to Eskom requesting their Key Industrial Consumers of which Gold Fields is one, to reduce its consumption to the minimum load possible.
04:54 AU Electricity supply interruptions stop AngloGold Ashanti’s S. African mining operations (45.17 )

Co stops its South African operations after electricity supply interruptions. Following notification from Eskom regarding interruptions to power supplies, AngloGold Ashanti has halted mining and gold recovery operations on all of its South African operations.
04:51 CAT Caterpillar Earnings Preview (65.25 )

CAT is expected to report Q4 earnings before the open with the conference call following at 11:00am ET. Estimates are for $1.50 EPS, $11.8 bln revs. Guidance: Co usually provides financial guidance in the press release. On October 19, co lowered guidance for FY07 EPS to $5.20-5.60, vs. $5.45 consensus, compared to previous guidance of $5.30-5.80; reaffirmed FY07 revs of $44.0 bln, which may not be comparable to $41.07 bln consensus. Co also gave FY08 guidance; estimated revs up 5-10% and profit per share up 5-15% from the mid-point of the Y07 outlook range… Past Performance: Co missed earnings in the last two quarters by $0.03-0.24 worse then consensus. In Q1, CAT beat by $0.15. Last qtr, co posted Q3 EPS of $1.40, missing estimates of $1.43 by $0.03; co beat on revs of $10.67 lbn vs. $10.33 bln consensus… CAT’s positive performance has mainly been coming from overseas. Previously CAT has cited that the growth last q was driven by continued and significant strength in sales outside North America, continued strength in a number of key global end markets, like mining, oil and gas, and engines for electric power generation, marine, and industrial applications. However, revs were down 11% last quarter, and the co cited that inside North America, it’s a very weak picture for many industries they serve. CAT felt the U.S. housing downturn, and they said last quarter they expect it to continue to decline. Non-residential construction has been weak and on-highway truck engines have been down. On the positive side, CAT expects continued growth outside North America. Areas of focus on the call: Listen for their outlook on key end markets, capacity-related inefficiencies, price realization, inventory levels (outside North America, inventories remained flat in the quarter), comments on Shin Caterpillar Mitsubishi joint venture. Secondary Plays: CNH, JOYG, BUCY, GEHL, GVA, DE… Technical Levels of Interest: see chart (length of horizontal line correlates with strength of support or resistance level) (PVIEW)
04:43 DISK Image Entertainment declares BTP Acquisition Co in breach of merger agreement and CT1 Holdings in breach of output distribution agreement (2.77 )

Co announces that it notified BTP Acquisition Co, LLC that BTP is in breach of the amended and restated merger agreement, dated June 27, 2007, and notified CT1 Holdings that CT1 is in breach of the output distribution agreement, dated December 7, 2007. Under the merger agreement, BTP agreed to acquire 94% of the outstanding common stock of Image Entertainment for $4.68 per share in cash. Image has requested financing information, and on the evening of January 24, 2008, BTP refused to provide such information. Image notified BTP that such refusal constituted a breach of the merger agreement, and an anticipatory breach of the scheduled February 1, 2008 closing. With the assistance of legal counsel, the Image board of directors is evaluating all available options and remedies, including termination of the merger agreement and collection of the $4.2 mln business interruption fee.
03:09 ABFS Arkansas Best misses by $0.01, beats on revs (23.51 )

Reports Q4 (Dec) earnings of $0.54 per share, $0.01 worse than the First Call consensus of $0.55; revenues rose 1.1% year/year to $459.3 mln vs the $431.9 mln consensus.
02:03 WIRES On The Wires

Takeda Pharmaceutical and Affymax (AFFY) announce that Takeda has dosed the first patient in the U.S. in a clinical trial of the investigational new drug, Hematide, for the treatment of anemia in cancer patients undergoing chemotherapy.
01:41 DNA Genentech and Biogen announce positive results from a Phase III trial of Rituxan in patients with rheumatoid arthritis (68.43 )

Co and Biogen Idec (BIIB) announce that a Phase III clinical study of Rituxan in biologic-naive patients met its primary endpoint of a significantly greater proportion of Rituxan-treated patients achieving an American College of Rheumatology 20 response at week 24, compared to placebo. The study enrolled patients with moderately-to-severely active rheumatoid arthritis who had an inadequate response to prior treatment with methotrexate, a disease modifying antirheumatic drug. In this study, known as SERENE, patients who received a single treatment course of two infusions of either 500 mg or 1000 mg of Rituxan in combination with a stable dose of MTX displayed a statistically significant improvement in ACR20 scores compared to patients who received placebo in combination with MTX.
01:12 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish Melco PBL Entertainment (MPEL), Las Vegas Sands (LVS), Albany Molecular Research (AMRI), International Game Technology (IGT), Southwest Airlines (LUV) and Brocade Communications (BRCD).
01:11 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Vasco Data Security (VDSI), Covance (CVD), Parexel International (PRXL), State Street (STT), Spectra Energy (SE), Horsehead Holding (ZINC), Cisco Systems (CSCO) and Juniper Networks (JNPR).
01:10 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Thursday’s edition, Jim claims certain retailers will benefit if the proposed economic stimuus package is approved. He favors Guess (GES), J. Crew (JCG) and Lowe’s (LOW). He also suggests Toll Brothers (TOL) because of the higher conforming mortgage loan limit of $729,750 that Fannie Mae, Freddie Mac and the FHA will support under the stimulus plan. Bear Stearns (BSC) is also now a takeover target, in his view.
01:08 HON Honeywell reports EPS in-line, beats on revs (56.20 )

Reports Q4 (Dec) earnings of $0.91 per share, in-line with the First Call consensus of $0.91; revenues rose 12.1% year/year to $9.28 bln vs the $8.94 bln consensus.
01:05 COBZ CoBiz Financial reports Q407 results (15.47 )

Reports Q4 (Dec) earnings of $0.26, excluding non-recurring items, $0.03 worse than the First Call consensus of $0.29; revenues rose 4.1% y/y to $31.2 mln vs. the $30.88 mln consensus.