Trading for the Masses

18:07 XJT ExpressJet Reports January 2008 Performance

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18:02 GMXR GMX Resources Enters Into Share Lending Agreement and Prices Common Stock Offering at $25.00 per share -Update-

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18:01 SFN Spherion beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs above consensus (6.62 +0.30)

Reports Q4 (Dec) earnings of $0.20 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.18; revenues rose 16.9% year/year to $582 mln vs the $576.7 mln consensus. Co issues in-line EPS guidance for Q1, sees EPS of $0.07-0.11, excluding non-recurring items, vs. $0.09 consensus; sees Q1 revs of $585-600 mln vs. $566.80 mln consensus.
17:48 MKTIN Market Internals -Update-

The Dow was up 0.48% at 12240, the Nasdaq was up 0.66% to close at 2320, and the S&P was up 0.59% to close at 1339. Leading sectors included: Casinos and Gaming +6.7%, Auto Manu +5.1%, Coal and Consumable Fuels +4.7%, Oil and Gas Exploration +4.3%, Autoparts and Equip +4.2. Lagging sectors included: Multiline Insurance -9.7%, Industrial REITS -4.7%, Thrifts and Mortgages -3.6%, Life and Health Insurance -3.1%, Insurance Brokers -2.4%. Today’s movement came from lower than avg volume (NYSE 1393, vs. 1629 avg, Nasdaq 2126, vs. 2328 avg), with advancers outpacing decliners (NYSE advance/decline 1770/1553, Nasdaq 1547/1462) with new lows outpacing new highs (NYSE new high/new low 41/119; Nasdaq 51/136).
17:36 FWRD Forward Air beats by $0.05, beats on revs; guides Q1 EPS in-line (29.91 +0.47)

Reports Q4 (Dec) earnings of $0.43 per share, $0.05 better than the First Call consensus of $0.38; revenues rose 22.9% year/year to $114.5 mln vs the $104.8 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.32-0.36 vs. $0.33 consensus; sees revs growth of 8-12%
17:34 FOE Ferro sees Q4 EPS below consensus; sees revs above consensus (17.10 +0.03)

Co sees Q4 EPS of $0.15, excluding $0.05 charge, vs $0.18 First Call consensus; sees revs of $570 mln vs $526.0 mln consensus. Co says, “Manufacturing operations were interrupted at the Bridgeport site in mid-December when an excess quantity of product was accidentally discharged into the plant’s on-site wastewater treatment facility. As a result, the Co incurred costs from scrapped product and additional wastewater treatment resulting in pre-tax charges of ~$2 mln in the 2007 Q4, or ~0.03 cents per diluted share… Also during Q4, Ferro continued to experience rising raw material costs, including sharply rising costs for cobalt and chrome oxide used in the Co’s Inorganic Specialties business. Since September, market prices for cobalt have increased over 50% and chrome oxide has increased over 35%.
17:32 CW Curtiss-Wright beats by $0.09, beats on revs; guides FY08 EPS below consensus, revs in-line (41.03 -0.04)

Reports Q4 (Dec) earnings of $0.85 per share, $0.09 better than the First Call consensus of $0.76; revenues rose 31.6% year/year to $497.7 mln vs the $476.2 mln consensus. Co issues downside EPS guidance for FY08, sees EPS of $2.55-2.65 vs. $2.72 consensus; sees FY08 revs of $1.83-1.85 bln vs. $1.83 bln consensus.
17:28 RIO Comp Vale Do Rio: Xstrata has rejected an informal cash and share takeover approach from RIO - FT (31.91 +1.56) -Update-

FT reports Xstrata has rejected an informal cash and share takeover approach from Brazilian mining group Vale pitched at just under 40 pounds a share or $76 bln for its entire equity. Xstrata and Glencore, the Swiss commodities trader that owns 35% of the Anglo-Swiss mining group, dismissed the offer and are holding out for a price equivalent to about 45 pounds a share, according to people close to the deal. “The two sides are nowhere near to an agreement,” said a person close to Vale, adding that the Brazilian group was “close to walking away from the whole thing”. Another person familiar with the situation confirmed that the two sides had failed to reach agreement on price. “The two companies’ share prices are not moving in the same direction,” the person said. “This is the big question. It’s creating a lot of disagreement and a lot of discomfort between the two parties.”
17:28 FWRD sees Q1 $0.32-0.36 vs $0.33 First Call consensus; sees revs growth of 8-12%
17:27 FWRD prelim $0.43 vs $0.38 First Call consensus; revs $114.5 mln vs $104.83 mln First Call consensus
17:26 S Sprint Nextel: Activist investor aims for Sprint board - FT (9.73 +0.29) -Update-

FT reports Ralph Whitworth, the activist investor, is in advanced talks to join the board of the co, a move that would give him a bigger platform to put pressure on mgmt to improve the performance of the struggling US telecoms group. The discussions with Mr Whitworth, whose investment firm Relational Investors owns a stake of about 2% in Sprint, are a sign that the company’s new CEO Dan Hesse wants to avoid a public confrontation with the investor.
17:24 CW sees FY08 $2.55-2.65 vs $2.72 First Call consensus; sees revs $1.83-1.85 bln vs $1.83 bln First Call consensus
17:23 PHM Pulte Homes Pulte, founder and Chairman of Pulte Homes, today filed a Form 144 with the SEC covering 3.8 mln shares of co stock

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17:23 PACR Pacer Intl on call guides FY08 EPS $1.60-1.70 vs $1.76 First Call consensus (17.18 +0.62) -Update-

(Stock trading at $18.00)
17:21 NDN 99 Cents Only: Conference Call Update (9.30 +0.45) -Update-

According to conference call transcript, co says “last year in the fourth quarter, I believe we lost a penny. The only thing I will say on guidance is what we actually said in the November call is we believe we will do better this year than last year. That is really all I can give right now.” (Note First Call consensus for Q4 EPS is $0.01)
17:20 CW prelim $0.85 vs $0.76 First Call consensus; revs $497.7 mln vs $476.20 mln First Call consensus
17:19 HME Home Prop of NY will replace Kellwood in the S&P SmallCap600 (44.22 -1.06)

S&P REIT Composite constituent Home Properties (HME) will replace Kellwood (KWD) in the S&P SmallCap 600 after the close of trading on Tuesday, February 12.
17:14 CRESY Cresud SA reports first half of FY08 ADR of $0.46 vs $0.57 yr ago; revs rise 107% to 8.3 mln pesos (17.40 +0.39)
17:13 NDN 99 Cents Only: Conference Call Update (9.30 +0.45) -Update-

Co is implementing controlled new store expansion plan, with primary focus on operational improvements, which will be increasingly selective in site evaluations and now expect store opening rate to be ~6-8% in fiscal 2009. The co’s focus will be to add stores that co believes will generate attractive return. Co is also restricting store openings to existing locations and do not anticipate entering any new markets until has established profitable store expansion model… Co expects gross margins to improve by ~150 basis points over the next four years from a recent historical gross profit baseline of ~39%. Key initiatives are new pricing, cutting out middle men in import buying, reduction in perishable product spoilage through more targeted buying. Additionally co rolled out a new loss prevention system. Due to these changes co expects to achieve 50 basis points in fiscal 2009.
17:10 DY Dycom resumes trading (23.31 +0.25) -Update-
17:08 NWA Northwest Airlines-Delta deal seen in weeks - Reuters (18.00 -0.45)

Reuters reports a merger between DAL and NWA could be announced in the next few weeks as Northwest pilots review details of a proposed deal, people briefed on the situation said on Monday. Northwest’s Air Line Pilots Association has been provided with details of what a combined carrier would look like, a person briefed said. Another person said a deal between the two airlines — which would create the largest passenger airline in the world — could be announced within the next few weeks. Although the exact structure of the deal remains unclear, many analysts believe Delta would end up buying Northwest.
17:08 ATCO American Technology misses by $0.01 (1.96 0.04)

Reports Q4 (Dec) ($0.06), $0.01 worse than the First Call dual-analyst est of ($0.05); revenues rose 60% year/year to $2.5 mln vs the $2.2 mln dual-analyst est. Co says, “We’re off to a solid start to FY08 with improved revenues and gross margin compared to Q4 of FY07.”
17:05 AGO Assured Guaranty beats by $0.02, beats on revs (21.51 -0.06)

Reports Q4 (Dec) earnings of $0.53 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.51; revenues rose 14.9% year/year to $101.6 mln vs the $92.9 mln consensus. Co says, “Financial guaranty reinsurance PVP increased by 610% in Q4 2007 versus the prior year period to $320.7 mln, principally due to the facultative reinsurance transaction with Ambac Assurance Corp (ABK) that was announced by the Co on December 13, 2007.”
17:03 NUAN Nuance Communications guides to upper half of previous guidance of FY08 non-GAAP EPS of $0.77-0.82, revs of $840-865 mln (16.25 -0.14)
17:01 VRTX Vertex Pharm announces that it intends to offer 6 million common shares and $250 million of convertible senior subordinated notes (18.21 +0.11) -Update-

The co announces that it intends to offer, subject to market and other conditions, 6 million shares of its common stock in an underwritten public offering under an automatically effective shelf registration statement on file with the SEC. Vertex intends to grant the underwriters an over-allotment option to purchase up to an additional 900,000 shares of its common stock. Concurrently with the offering of its common stock, Vertex also intends to offer, subject to market and other conditions, $250.0 mln aggregate principal amount of convertible senior subordinated notes due 2013 in an underwritten public offering under a separate automatically effective shelf registration statement on file with the SEC. Vertex also expects to grant the underwriters an over-allotment option to purchase up to $37.5 mln aggregate principal amount of additional notes on the same terms and conditions.
17:01 NUAN Nuance Communications on call guides Q2 non-GAAP revs to $210-218 vs $207.52 mln First Call consensus; EPS of of $0.17-0.19 vs $0.18 First Call consensus (16.25 -0.14)
17:01 FUL H.B. Fuller names James R. Giertz Chief Financial Officer (21.23 +0.04)

Co announced that James R. Giertz will join the co as senior vice president and chief financial officer on Mar. 3, 2008. Giertz succeeds Jim McCreary, H.B. Fuller controller, who has served as interim chief financial officer since February 2007. McCreary will continue in his role as vice president and controller for FUL.
17:00 ASI American Safety Insurance announces acquisition of LTC Risk Management and LTC Insurance Services; Co expects the acquisition to be modestly accretive to its 2008 earnings (19.99 +0.22)
17:00 AGO prelim $0.53 vs $0.51 First Call consensus; revs $101.6 mln vs $92.87 mln First Call consensus
16:55 CPST Capstone Turbine beats by $0.02 (01.51 +0.02)

Reports Q3 (Dec) earnings of ($0.05) per share, $0.02 better than the First Call dual-analyst est of ($0.07); revenues rose 61% year/year to $9.2 mln vs the $8.1 mln consensus.
16:55 TEVA Teva Pharm Earnings Preview (46.90 +0.26) -Update-

TEVA is expected to report 4Q07 earnings before the open tomorrow with a conf call to follow at 8:30 AM ET… TEVA Consensus: First Call 4Q07 EPS of $0.66, revs of $2.48 bln; 1Q08 EPS of $0.65, revs of $2.49 bln; FY07 EPS of $2.35, revs of $9.22 bln; FY08 EPS of $2.69, revs of $10.5 bln… Guidance: On 12/24 press release, the co increased FY07 EPS guidance to $2.34-2.36 due to the launch of Protonix. The co usually beats EPS, it has beat 7 out of the past 9 times (4 of the beats by 2 cents), the size of the beats has varied from 2 cents to 20 cents… Expectations: The co is involved in litigation with WYE over generic Protonix. There is currently a standstill and TEVA has halted shipments for now. On 1/29, WYE announced a launch of its own generic version of Protonix, TEVA announced that this violates the standstill agreement. Following this, analysts expected TEVA to relaunch Protonix but on 2/1 TEVA announced that it has not relaunched it and does not intend to ship Protonix at this time. Analysts are expecting additional updates regarding this situation on why TEVA did not relaunch Protonix. There are also some expecting additional clarity for 2008 and what the co plans on doing…some are expecting additional at-risk launches, therapeutic substitution and Copaxone gains. Analysts generally seem to agree that this is a best-of-breed generics company, they say that this is one large-cap co that is showing growth and can sustain it in an economic downturn. Keep in mind that some have been concerned about the resignation of TEVA’s North America CEO, George Barrett (co announced on 1/10 that he resigned, stock sold off 4% and also downgraded by Bucky)… Areas of Focus on the Call: 1) Protonix commentary 2) 2008 guidance 3) Potential new drug launches for 2008 growth… Technical Levels of Interest: Please see the Levels of Interest. (Note that the length of horizontal line correlates with strength of support or resistance level) (PVIEW)
16:53 WW Watson Wyatt announces a $100 million share repurchase program of the company’s Class A common stock (49.78 -0.22)
16:52 CUZ Cousins Prop resumes trading (23.50 -0.76) -Update-
16:40 LGF Lions Gate Entain misses by $0.05, reports revs in-line (9.51 -0.02)

Reports Q3 (Dec) earnings of $0.02 per share, $0.05 worse than the First Call consensus of $0.07; revenues rose 14.3% year/year to $290.9 mln vs the $289.4 mln consensus.
16:39 ACTI ActivIdentity reports 1Q08 results (3.27 -0.13)

Co reports 1Q08 EPS of ($0.07), ex-items, vs. ($0.0 First Call consensus; revs increased 5.6% from a year ago to $15.43 mln.
16:39 LGF prelim $0.02 vs $0.07 First Call consensus; revs $290.86 mln vs $289.38 mln First Call consensus
16:37 CMP Compass Minerals reports Q4 EPS of $1.31 vs $1.05 First Call consensus; revs rose 55% YoY to $326.1 mln vs $281.11 mln First Call consensus (46.01 +3.35)

“Our record results this quarter and for all of 2007 demonstrate CMP improving performance. As the leading North American producer of sulfate of potash, our specialty fertilizer segment is realizing increasing benefits from the dynamic growth of the fertilizer industry. Our salt segment also posted substantial sales and earnings gains, aided by a significant year-over-year weather benefit in the fourth quarter… We’re quite optimistic about our opportunities in 2008. The outlook for sulfate of potash is strong as global demand for all crop nutrients remains robust. Assuming normal weather, our salt segment should benefit from stronger pricing, new products and increased rock salt capacity. In addition, we expect our lower cost of capital and improved tax efficiency to help us deliver even better results.”
16:37 ACTI prelim ($0.07) vs ($0.0 First Call consensus; revs $15.4 mln vs $15.16 mln First Call consensus
16:36 GIII G-III Apparel announces acquisition of Andrew Marc for $42 million; Expected to be accretive in the first year (13.60 -0.24)
16:35 III Insteel Industries: Third Ave Mgmt discloses 11% stake in SC 13G (5.95 -0.03)
16:35 DY Dycom lowers second qtr revenue and earnings expectations (23.31 +0.25)

Co issues downside guidance for Q2 (Jan), sees EPS of 0.03-0.04, includes items, vs. $0.20 First Call consensus, co says this is $0.11-0.12 below the low end of the previous guidance; sees Q2 (Jan) revs of $285.00 mln vs. $300.81 mln consensus, which is below the range of $290 million to $310 million previously reported. Co says expected results for the quarter were impacted by a significant decline in customer spending during January. This decline was the product of a noticeable softening in the intensity with which a broad range of customers executed near term spending plans. Softening was evident in the delayed approval of calendar 2008 budgets by certain customers, the pace with which approved budgets were executed during January, overall volumes of available work, and in certain instances customer specific delays. Customer spending declines were not the consequence of any noteworthy customer project cancellations. In fact, the quarter was marked by a number of notable contract extensions and one new master contract award.
16:34 CRL Charles River beats by $0.02, beats on revs; reaffirms FY08 EPS guidance, revs guidance (64.72 +1.46)

Reports Q4 (Dec) earnings of $0.65 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.63; revenues rose 17.0% year/year to $318 mln vs the $307.9 mln consensus. Co reaffirms guidance for FY08, sees EPS of $2.87-2.97, excluding non-recurring items, vs. $2.95 consensus; sees FY08 revs up 10-13% yr/yr, which equates to approx $1.35-1.39 bln vs. $1.36 bln consensus.
16:33 CRL sees FY08 $2.87-2.97 vs $2.95 First Call consensus; sees revs +10-13%
16:32 CRL prelim $0.65 vs $0.63 First Call consensus; revs $318.0 mln vs $307.89 mln First Call consensus
16:32 YHOO Yahoo!: Microsoft responds to YHOO rejection - says they are confident that moving forward promptly to consummate a transaction is in the best interests of all parties (29.87 +0.67) -Update-

Co issued the following statement in response to the announcement by YHOO that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!: “It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”
16:31 NXXI Nutrition 21 reports Q2 EPS of ($0.06) vs ($0.04) single analyst est; revs rose 43% YoY to $13 mln vs $15.70 mln single analyst est (0.69 +0.11)
16:31 HGR Hanger Orthopedic beats by $0.03, beats on revs (9.69 +0.13)

Reports Q4 (Dec) earnings of $0.23 per share, $0.03 better than the First Call consensus of $0.20; revenues rose 11.0% year/year to $170.8 mln vs the $163.3 mln consensus.
16:31 LNCR Lincare beats by $0.03, reports revs in-line (33.09 -0.34)

Reports Q4 (Dec) earnings of $0.70 per share, $0.03 better than the First Call consensus of $0.67; revenues rose 12.0% year/year to $412.3 mln vs the $414.4 mln consensus.
16:31 RIMM Research In Motion email reports outage of Blackberry service in Americas - Reuters (94.47 +4.76) -Update-
16:31 HGR prelim $0.23 vs $0.20 First Call consensus; revs $170.8 mln vs $163.27 mln First Call consensus
16:30 CRK Comstock misses by $0.03, beats on revs (33.08 +0.79)

Reports Q4 (Dec) earnings of $0.48 per share, $0.03 worse than the First Call consensus of $0.51; revenues rose 54.4% year/year to $195.8 mln vs the $184.5 mln consensus.
16:30 HGR prelim $0.23 vs $0.20 First Call consensus; revs $170.8 mln vs $163.27 mln First Call consensus
16:30 LNCR prelim $0.70 vs $0.67 First Call consensus; revs $412.3 mln vs $414.44 mln First Call consensus
16:29 CRK prelim $0.48 vs $0.51 First Call consensus; revs $195.8 mln vs $184.49 mln First Call consensus
16:28 ANLY Analysts Intl reiterates that its Board of Directors believes the proposal is highly inadequate, opportunistic and does not reflect the long-term value of the transformation strategy recently launched by Analyst International’s new CEO (1.26 -0.01)

In response to the unsolicited, contingent expression of interest from Koosharem Corporation made public in a recent 13D filing with the Securities and Exchange Commission, ANLY today reiterated that its Board of Directors believes the proposal is highly inadequate, opportunistic and does not reflect the long-term value of the transformation strategy recently launched by Analyst International’s new CEO. Dr. Krzysztof K. Burhardt, Chairman of the Board, stated, “Our Board has carefully considered each expression of interest from Koosharem and determined each to be highly inadequate and conditional. In contrast, we have strong new leadership and a specific roadmap for shareholder value creation. Elmer Baldwin, as our new CEO, has developed a comprehensive strategic plan that addresses the company’s operational challenges and positions the company for profitability as a pure-play IT staffing and consulting enterprise. He has also taken steps to appoint a new management team that is highly qualified to execute this transformation. As a result, the Board believes that the best interest of shareholders lies in executing our plan.”
16:24 MLAB Mesa Laboratories reports 3Q08 of $0.34 vs. $0.25 YoY; revs increased 13% from a year ago to $4.61 mln (23.12 +1.07)
16:22 ANDE Andersons: Ethanol production has begun at the 110 million gallon ethanol plant in Greenville, Ohio (47.01 -0.11)

The plan is jointly owned by ANDE and MRO.
16:22 CUTR Cutera misses by $0.09, misses on revs (11.70 -0.53)

Reports Q4 (Dec) earnings of $0.32 per share, excluding non-recurring items, $0.09 worse than the First Call consensus of $0.41; revenues fell 13.1% year/year to $26.5 mln vs the $32.9 mln consensus.
16:22 CLWR Clearwire: Follow up on MOT stake in SC 13G; unchanged from earlier disclosure (15.95 +0.60) -Update-

As mentioned at 15:19, Motorola (MOT) filed an SC 13G filing disclosing a 12.5% stake in CLWR. While the 13G filing is new, the stake has not changed from 16.666 mln share stake disclosed in an S-3 filing disclosed on 3/7/07. The 13G filing denotes a passive position, above 5%, at the end of year.
16:21 GGP Gen Growth Prop misses by $0.02; guides FY08 FFO in-line (35.01 +0.14)

Reports Q4 (Dec) funds from operations of $0.64 per share, $0.02 worse than the First Call consensus of $0.66. Co issues in-line guidance for FY08, sees FFO of $3.58-3.61 vs. $3.61 consensus.
16:20 CUZ Cousins Prop misses by $0.08, beats on revs (23.46 0.80)

Reports Q4 (Dec) funds from operations of $0.14 per share, $0.08 worse than the First Call consensus of $0.22; revenues rose 6.0% year/year to $44.2 mln vs the $37.2 mln consensus.
16:20 TECHX Equity markets start the week on a positive note, averages higher across the board

The major indices posted modest gains across the board today, led by strength in big cap. technology shares. The averages traded from lows to highs today with the Dow Industrials complex off over 100 points in the early going. The weakness was attributed to steep declines in Dow component AIG (-11.7%) which announced auditors have found ‘material weakness’ in it’s portfolio accounting with regards to Credit Default Swaps. This in turn pressured the entire financial space early on. However, technology remained strong throughout the session, buoyed by follow through from Friday’s gains in tech bellwethers like AAPL (+3.15%), BIDU (5.45%), & RIMM (+5.3%). In addition, technology was also bolstered by YHOO’s rejection of MSFT’s unsolicited 31.00/share bid for the company which YHOO felt severely undervalues it’s shares. Unofficially, the indices finished with solid gains as the INDU settled @ 12240 +57.90, SPX @ 1339 +7.8, COMPQ @ 2320 +15.20, NDX @ 1793 +19.30, & RUT @ 699.75 +0.85. Sector strength today was seen in Clean Energy (PBW +3.7%), Homebuilders (XHB +3.25%), Energy (OIH +3.1%, XLE +2.6%), & Retail (RTH +2.5%). Sector weakness was noted in Financials (XLF -2.2, IYF -1.8%), Real Estate (IYR -2.0%), Commodities (DBA -0.70%), & Regional Banks (RKH -0.50%).
16:19 CUZ Cousins Prop trading halted (23.50 -0.76)
16:19 GGP sees FY08 funds from operations of $3.58-3.61 vs $3.61 First Call consensus
16:18 IPCC Infinity Prpty & Casualty and Casualty Corporation announces litigation settlement and adjustment to 2007 earnings (40.72 -0.52)

Co announces it has reached an agreement to settle for $13.0 mln a lawsuit brought against one of its insurance company subsidiaries alleging bad faith in the handling of a 1993 Florida personal automobile liability claim. As a result of this settlement, Infinity will accrue an additional $9.5 mln in the fourth quarter of fiscal year 2007. The after-tax impact on earnings per share for the three and twelve months ended December 31, 2007 is $0.37 and $0.33, respectively. The co also guides for FY08 EPS of $3.25 - $3.65 may not be comparable to $3.59 consensus, included in this guidance is a charge of $0.02, the estimated cost to sublease the remaining vacated space related to the consolidation of back office operations.
16:18 CUZ prelim funds from operations of $0.14 vs $0.22 First Call consensus; revs $44.2 mln vs $37.23 mln First Call consensus
16:17 GGP prelim funds from operations of $0.64 vs $0.66 First Call consensus
16:17 UTX United Tech at the Lehman Brothers Industrial Select Conference Summary (71.57 +0.22)

On the call, co reiterates 2008 guidance eps of $4.65-4.85 (vs. $4.86 consensus). Mgmt sees a lot of opportunities (acquisitions) in the fire and securities segments as well as other segments. UTX has a strong balance sheet to go aggressively after some acquisitions…will be disciplined. Aerospace segment is very robust…no spillover into commercial segment from economy. Mgmt feels very confident about EPS. Mgmt has not yet seen decline in commercial business to due credit/economy decline.
16:17 ARE Alexandria RE misses by $0.01, beats on revs (95.00 -0.2

Reports Q4 (Dec) funds from operations of $1.46 per share, $0.01 worse than the First Call consensus of $1.47; revenues rose 19.3% year/year to $109.6 mln vs the $101.1 mln single estimate.
16:15 ARE prelim funds from operations of $1.46 vs $1.47 First Call consensus; revs $109.61 mln vs $101.13 mln single estimate
16:15 ALDA Aldila, Inc. Declares a $5.00/share special cash dividend and signs credit facility for up to $15 mln (14.33 -0.69) -Update-

Co announces its Board of Directors has declared a special cash dividend of $5.00 per share to be paid on March 10, 2008 to shareholders of record as of Feb 25, 2008. The co also announced it has signed a credit facility with Key Bank National Association. The co plans to use borrowings from the credit facility, plus funds on hand from its previously announced sale of its 50% interest in Carbon Fiber Technology, to pay this special dividend and provide future working capital coverage when and if needed.
16:14 IMM Immtech Intl reports Q3 EPS of ($0.34) vs ($0.1 single analyst est; revs rose 236% YoY to $1.8 mln vs $1.1 mln single analyst est (3.04 +0.09)
16:13 BDE Bois D Arc Energy beats by $0.05, beats on revs (19.23 +0.13)

Reports Q4 (Dec) earnings of $0.42 per share, $0.05 better than the First Call consensus of $0.37; revenues rose 51.4% year/year to $100.2 mln vs the $97 mln consensus. Co says their 2008 drilling program is off to a strong start with two successful development wells. The OCS-G 24922 #1 at Ship Shoal block 97 was drilled to a depth of 12,983 feet and encountered 71 net feet of pay in two high quality sands. First production for the well is expected in February. Bois d’Arc has a 78% working interest in this well. The co also said the second successful development well was drilled to test the “Perch” prospect at Ship Shoal block 120. The OCS-G 24926 #1 was drilled to a depth of 5,000 feet to develop multiple previously proven undeveloped shallow gas reservoirs within the Ship Shoal block 113 field area. The well encountered 109 feet of pay in eight objective sands. First production for the well is expected in the second quarter.The co has a 100% working interest in this well. The co said it is currently drilling an 18,500 foot exploratory well to test its “Chinook” prospect at South Pelto block 21.
16:13 FARM Farmer Brothers reports Q2 EPS ($0.02) vs $0.21 in yr ago period; revs +28.6% yr/yr to $71.4 mln vs $55.5 mln in yr ago period (23.08 +0.23)
16:13 ALDA Aldila, Inc. halted, news pending (14.33 -0.69)
16:12 NUAN Nuance Communications beats by $0.01, misses on revs (16.22 -0.17)

Reports Q1 (Dec) earnings of $0.18 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.17; revenues rose 46.2% year/year to $195 mln vs the $200 mln consensus.
16:12 WCN Waste Connections beats by $0.01, reports revs in-line; guides FY08 revs in-line (29.27 )

Reports Q4 (Dec) earnings of $0.35 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.34; revenues rose 17.6% year/year to $247.7 mln vs the $245.7 mln consensus. Co issues in-line guidance for FY08, sees FY08 revs of $1.05-1.06 bln vs. $1.05 bln consensus.
16:11 PRO Pros Holdings reports Q4 results; issues in line Q1 & FY08 guidance (16.32 -0.75)

Co reports Q4 EPS of $0.15 vs $0.11 First Call consensus; revs rose 35% YoY to $17.8 mln vs $17.25 mln First Call consensus. PRO sees Q1 $0.10 vs $0.10 First Call consensus; sees revs $17.5-17.8 mln vs $17.43 mln First Call consensus. Co sees FY08 $0.45-0.47 vs $0.47 First Call consensus; sees revs $76-78 mln vs $78.75 mln First Call consensus.
16:11 NUAN prelim $0.18 vs $0.17 First Call consensus; revs $195.0 mln vs $199.96 mln First Call consensus
16:10 ASEI American Science & Engineering misses by $0.07, misses on revs (52.53 -0.42)

Reports Q3 (Dec) earnings of $0.55 per share, excluding non-recurring items, $0.07 worse than the First Call consensus of $0.62; revenues fell 10.9% year/year to $42.6 mln vs the $43.7 mln consensus. “Backlog reached another record high this quarter at $125 million, with bookings from international customers accounting for 71% of total product bookings — continuing the upward trend of international orders. While driving to increase annual revenue, we are working our way through learning-curve challenges and introductory market pricing requirements that are impacting profitability in the near term. In addition, we continue to improve the balance of our product mix through the increase of parcel and cargo system orders.”
16:10 GLUU Glu Mobile reports Q4 (Dec) results, revs in-line; guides Q1 revs above consensus; guides FY08 revs in-line (4.56 -0.17)

Reports Q4 (Dec) GAAP loss of $0.03 per share, non-GAAP EPS of $0.06, may not be comparable to the First Call consensus of ($0.07); revenues rose 26.6% year/year to $18.1 mln vs the $18 mln consensus. Co issues guidance for Q1, sees EPS of ($0.17)-($0.18), non-GAAP EPS of ($0.04)-($0.05), may not be comparable to ($0.06) consensus; sees Q1 revs of $18-18.4 mln vs. $17.57 mln consensus. Co issues guidance for FY08, sees EPS of ($0.31)-($0.36), non-GAAP EPS of $0.15-0.20, may not be comparable to ($0.10) consensus; sees FY08 revs of $83-87 mln vs. $83.03 mln consensus.
16:10 GB Wilson Greatbatch announces acquisition of DePuy Orthopaedics’ Chaumont, France manufacturing facility (21.91 -0.14)

Co announces that it has successfully completed the previously announced acquisition of DePuy’s Chaumont, France manufacturing facility. The Chaumont facility will continue to produce primary hip stems and shoulder implants for DePuy for the foreseeable future. The acquisition was structured as an asset purchase and the purchase price was funded with cash on hand and availability under GB’s revolving credit agreement.
16:10 BDE prelim $0.42 vs $0.37 First Call consensus; revs $100.24 mln vs $96.97 mln First Call consensus
16:10 SBKC Security Bank announces $35 million rights offering of common stock (7.10 -0.26)
16:09 SPRT SupportSoft beats by $0.07, beats on revs; guides Q1 EPS below consensus, revs below consensus (3.48 +0.00)

Reports Q4 (Dec) loss of $0.03 per share, $0.07 better than the First Call consensus of ($0.10); revenues rose 11.5% year/year to $12.6 mln vs the $12 mln consensus. Co issues downside guidance for Q1, sees EPS of $-0.08-0.10 vs. ($0.06) consensus; sees Q1 revs of $11-11.4 mln vs. $11.42 mln consensus.
16:09 NDN 99 Cents Only beats by $0.03, misses on revs (8.68 +0.45)

Reports Q3 (Dec) earnings of $0.14 per share, $0.03 better than the First Call consensus of $0.11; revenues rose 7.5% year/year to $324.6 mln vs the $328 mln consensus. The Company expects income in the second half of fiscal 2008 to be higher than in the second half of fiscal 2007, and expects to be able to offset the effects of increased minimum wages compared to same period last year by anticipated pricing leverage and operating efficiency improvements.
16:08 GLUU sees FY08 ($0.31-0.36) may not compare to ($0.10) First Call consensus; sees revs $83-87 mln vs $83.03 mln First Call consensus
16:08 GLUU sees Q1 ($0.17-0.1 may not compare to ($0.06) First Call consensus; sees revs $18-18.4 mln vs $17.57 mln First Call consensus
16:07 BRKS Brooks Automation misses by $0.10, misses on revs; guides Q2 EPS below consensus, revs below consensus (11.53 +0.2

Reports Q1 (Dec) loss of $0.01 per share, $0.10 worse than the First Call consensus of $0.09; revenues fell 22.8% year/year to $147.8 mln vs the $160.2 mln consensus. Co issues downside guidance for Q2, sees EPS of ($0.10)-$0.00 vs. $0.14 consensus; sees Q2 revs of $135-150 mln vs. $165.34 mln consensus… said, “Our results in the quarter are reflective of the difficult external environment that exists in the semiconductor capital equipment industry. Late December delivery push-outs and equipment rescheduling actions are a result of the high level of near-term business uncertainty facing our customers. Clearly the assessments of industry conditions which we have heard in the last two weeks have tempered our expectations for a quick upturn in business. On a positive note, even in these difficult times we are engaging with customers on new business opportunities, achieving important design-in wins and market share gains, investing in critical people and product development programs and will be continuing to generate positive cash flow from operations.”
16:07 GLUU prelim ($0.03) may not compare to ($0.07) First Call consensus; revs $18.1 mln vs $17.97 mln First Call consensus
16:07 TWTC Time Warner Tcom reports EPS in-line, revs in-line (16.62 +0.25)

Reports Q4 (Dec) loss of $0.04 per share, in-line with the First Call consensus of ($0.04); revenues rose 17.1% year/year to $279.5 mln vs the $282.1 mln consensus. Co also says “As in the past, the co expects future quarterly margins will be impacted by the timing of sales, installations, seasonality and other normal business fluctuations, as well as integration synergies and costs. The co expects the first quarter of 2008 will be impacted by the historical trends which includes a sequential cost increase due to resetting of payroll taxes and merit raises, and lower seasonal revenue growth associated with less selling days in the fourth quarter. The co expects a first quarter of 2008 sequential cost increase for payroll taxes and merit raises totaling $4 to $5 mln. For 2008, the co expects to spend $10 to $14 mln on integration and branding, and $240 to $260 mlnfor its general operations which will primarily be used to fund growth opportunities. ..”
16:07 ANSV Anesiva reports Q4 EPS of ($0.60) vs ($0.62) consensus (4.76 +0.09)
16:06 VRTX Vertex Pharm beats by $0.10, misses on revs; guides FY08 revs below consensus (18.21 +0.11)

Reports Q4 (Dec) loss of $0.56 per share, $0.10 better than the First Call consensus of ($0.66); revenues fell 45.9% year/year to $51 mln vs the $66.7 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $200-220 mln vs. $271.69 mln consensus. “In 2008, Vertex expects to direct its investment towards the priority of the telaprevir registration program and development of telaprevir in the treatment-failure population. While investing in telaprevir, we are prudently managing the advancement of other earlier and mid-stage opportunities in the areas of HCV, cystic fibrosis and immune-mediated diseases.”
16:06 WCN sees FY08 revs $1.05-1.06 bln vs $1.05 bln First Call consensus
16:06 WCN prelim $0.35 vs $0.34 First Call consensus; revs $247.7 mln vs $245.65 mln First Call consensus
16:05 NDN prelim $0.14 vs $0.11 First Call consensus; revs $324.63 mln vs $328.00 mln First Call consensus
16:05 VARI Varian’s Board authorizes new $100 million stock repurchase program (50.96 -1.75)

The co announces that its Board of Directors has authorized the repurchase of up to $100 million in shares of its common stock.
16:05 CUTR prelim $0.32 vs $0.41 First Call consensus; revs $26.5 mln vs $32.88 mln First Call consensus
16:05 QGEN Qiagen beats by $0.02, beats on revs (20.93 +0.46)

Reports Q4 (Dec) earnings of $0.16 per share, $0.02 better than the First Call consensus of $0.14; revenues rose 67.0% year/year to $210.2 mln vs the $199.6 mln consensus.
16:04 VECO Veeco Instruments beats by $0.02, misses on revs; guides Q1 EPS in-line, revs in-line (13.65 -0.11)

Reports Q4 (Dec) earnings of $0.07 per share, $0.02 better than the First Call consensus of $0.05; revenues fell 13.2% year/year to $106.8 mln vs the $109.4 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.00-0.06 vs. $0.01 consensus; sees Q1 revs of $98-105 mln vs. $102.27 mln consensus.

Wow, what a snoozer for this trader. Two solid moves in the spoos, one off the open, then straight up for the 2nd move that we have been stuck consolidating now for the past 3 hours. I am pushing quite a bit to the sidelines as I could make a case for either up or down, which means I will wait for clearer signals to take my spots. Its a grind but that’s trading most of the time. A total Grind.

Surround Sound

Young Prayer

Build your own trading system: Part 2

Tip Joy

Little Red Rooster

Every Englishmen is an Island

How to Scare the Pants of an Investor

Aimee Mann Mockumentary Starring John Krasinski, Ben Stiller, Will Ferrell

Much like the housing market, YHOO shareholders believe their stock is worth more than the market forces and they put the big snuff on the MSFT hostile bid this am. I bet the deal still gets done, just a matter of what price. The market wasn’t that impressed with the deal when it was announced so we will see where the straighten it all out. Dow changes their componentry, but does 30 stocks matter to me? Nah. On to the expiration week!!!

08:32 ARGN Amerigon: Q4 preview - Northland Securities (17.12 )

Northland Securities says despite relatively soft passenger vehicle delivery trends during the fourth quarter and the General Motors strike related inventory pre-build that pulled some business out of 4Q and into 3Q, firm feels comfortable with their above consensus $15.9 mln rev and $0.06 est. Considering a modest amount of Hyundai Genesis pipeline fill in the quarter, the co should realistically be able to report sequential rev growth. Additionally, they do not anticipate any accelerating option vesting surprises as was the case in Q4 2006.
08:31 BP BP warns staff over Thunder Horse - FT (64.30 )

FT reports the co has warned staff against creating electronic documents on unpublicized problems with a key component of the much-delayed Thunder Horse, the world’s largest floating oil production platform, as continued troubles with its US operations plague the UK co. In a confidential e-mail to staff on the platform in the Gulf of Mexico, Stan Bond, project general manager, said: “Don’t create a document (including e-mails or BlackBerry messages) if a telephone call or meeting will suffice.” He said that when creating draft reports or presentations on the issue of the tree coupler — which an employee described as a control system part crucial to run the platform — the first and last drafts should be sent to BP’s legal department for a “quick review”. Mr Bond added: “Whenever possible, avoid written communication on this issue outside of BP and its direct contractor personnel.” Ronnie Chappell, a BP spokesman, said Mr Bond’s e-mail, seen by the Financial Times, was “standard internal communication business advice”. Yet a BP employee insisted the advice was “highly unusual — never-seen-before kind of stuff”. The employee received no such notification on the last significant Thunder Horse problem, when infrastructure under the surface had to be pulled up for welding repairs that would further delay production, first scheduled for 2005, until mid-2008.
08:31 VAL reaffirms FY08 $1.65-1.75 vs $1.69 First Call consensus

08:31 CE Celanese announces authorization of stock repurchase plan of up tp $400 mln (38.72 )

08:31 MCY prelim $0.81 may not compare to $0.83 First Call consensus

08:31 CPWR Compuware Names Bob Paul President and Chief Operating Officer

…
08:31 VAL prelim $0.24 vs $0.23 First Call consensus; revs $765.1 mln vs $726.48 mln First Call consensus

08:31 AFG reaffirms FY08 $3.75-3.95 vs $3.74 First Call consensus

08:30 NSSC prelim $0.06 vs $0.05 First Call consensus; revs $16.2 mln vs $16.40 mln First Call consensus

08:30 AFG prelim $1.21 vs $0.97 First Call consensus

08:30 S&P futures vs fair value: +3.7. Nasdaq futures vs fair value: +11.0.

It continues to be a quite morning. Futures have gained some ground with the Nasdaq set to outperform.
08:30 CYTR CytRx Receives FDA Correspondence Regarding Phase IIb Arimoclomol Clinical Trial in ALS

…
08:27 HYC Hypercom issues statement of Ingenico inquiry (3.95 )

Early this morning, co issued the following statement on behalf of Hypercom’s Board of Directors regarding Ingenico’s inquiry concerning the potential acquisition of the Company: “Our Board has always considered any and all credible offers for our Company, both to maximize shareholder value and as part of our fiduciary responsibility. Accordingly, we have opened discussions with Ingenico to more fully determine their ability to promptly make a credible, firm and fully financed offer, with certainty of closing, as well as to determine the complete terms of their proposal. We intend to conduct these discussions outside of the public arena, arrive at an informed conclusion, and announce our conclusion as expeditiously as possible. We will also continue to move forward with our intended acquisition of the e-Transactions business of Thales S.A. which we believe has a high certainty of closing and will generate significant shareholder value.”
08:27 SCANX Early pre-market gappers

Gapping up: HYC +40.8%, POSS +34.5%, ONT +13.4%, TASR +6.4%, CTIC +5.8%, SPWR +5.4%, DSCO +4.6%, NEU +4.2%, ATR +3.9%, GFA +3.1%, FSLR +2.5%, KWD +2.2%, GOLD +2.1%, GSK +1.5%, TWX +1.3%, AAPL +1.3%… Gapping down: NURO -17.8%, BLDR -11.4%, BRO -10.8%, SLT -5.3%, BRLC -5.3%, HMY -4.6%, AUY -3.9%, PTR -3.1%.
08:26 BONDX Leaking Some

The bond market is a little soft with overbought sentiment overseas also taking a bite out of treasuries. Trade is now fading Fri’s price recovery as the flight-to-quality dries up & whatever bad news bubbles to the surface just doesn’t carry the stench it once did. The 10-yr yield is pressing on its lowest level in nearly 5 years & since the aggressive easing & fiscal stimulus package was announced the market has struggled to chip its way lower. The 2-10-yr yield spread is a little flatter at 168.4. Bond prices in the EuroZone were weak on profit taking & a technical correction while in Japan, markets were closed. Treasuries have nothing to work with today as the calendar is near empty with just Poole late. The Fed will auction another $30B in its TAF with results tomorrow. Prices are exposed to the downside as equities indicate higher & technicals point lower. The buck is off on the euro & yen, but recovering some from the worst levels overnight, the yen is gaining against the majors on carry-unwind. Gold is offered from stronger levels now 924.53 (+1.54), but is holding better on inflation potential, crude slipped as threatened production is resumed, now 91.97 (+0.20). The day is data free with the TAF auction going but no results. St. Louis Fed’s Poole speaks late (17). The euro is at 1.4526 & the yen is at 106.9400 while the 10-yr is -06/32 yielding 3.667%.
08:24 GCOM Globecomm Systems: Second quarter is $0.05 ahead, annual guidance maintained, bu multiple opportunities going forward (10.13 )

08:24 WHR Whirlpool: It appears that WHR’s last quarter’s earnings, were boosted by 26% due to Brazilian tax credits - WSJ (89.03 )

WSJ reports while its main business is making washers, dryers and other bulky appliances, a big part of its profits are from tax credits. By “big,” the author means it appears that last quarter, in a roundabout way, tax credits helped boost Whirlpool’s earnings by 26% — and not just any tax credits, but Brazilian tax credits. That isn’t normally the kind of stuff that makes for fun weekend reading. But considering that Whirlpool doesn’t go out of its way to point this out when it reports earnings — there was nothing about Brazilian tax credits in a recent statement heralding “record results” — the author figures that he would. To put it in perspective, according to Citigroup analyst Jeffrey Sprague, 63 cents of the $2.38 a share Whirlpool earned last quarter can be tied directly to the credits… With earnings per share sailing past expectations by 23 cents, Whirlpool’s stock throughout the rest of the week popped more than 10% on the news, with little in the way of any discussion of the role that credits may have played… Tax credits offset excise taxes in Brazil, bolstering profits there. When the results are consolidated in the U.S., they are higher by that amount and flow to the bottom line. These credits, referred to in regulatory filings simply as Befiex, are anything but predictable. They were first granted in 1996 by the Brazilian govt to two Brazilian subsidiaries as export incentives that, in effect, would offset the federal excise tax in Brazil. Still, it is a red flag when something nonoperating represents more than an incremental part of earnings, or perhaps plays a big role in beating Wall Street expectations. That is especially true if the items in question aren’t predictable.
08:22 NFLX Netflix to phase out HD DVD discs (26.88 )

Co said that it will move toward stocking high-def DVDs exclusively in the Blu-ray format. Citing the decision by four of the six major movie studios to publish high-def DVD titles only in the Sony (SNE) developed Blu-ray format, Netflix said that as of now it will purchase only Blu-ray discs and will phase out by roughly year’s end the alternative high-def format, HD DVD, developed by Toshiba.
08:22 NVDA NVIDIA: FQ4 earnings preview; tgt cut to $28 - Caris (24.99 )

Caris reiterates their Average rating for NVDA ahead of 4Q08 earnings this week. While JanQ financial results are likely to be inline to slightly better than consensus expectations, incremental PC food chain softness could bring pressure to NVDA outlook for 1Q09. Furthermore, continued out-performance may also be constrained by a tightening competitive landscape and lower margin growth drivers in the medium term. Firm is lowering their tgt to $28.00 from $37.00 to reflect sector related multiple compression and heightened near-term earnings risk.
08:21 PTEC Phoenix Tech and SanDisk partner to optimize performance and power of next-generation mobile computers (15.84 )

Phoenix Technologies (PTEC) announces a partnership with SanDisk (SNDK) to drive innovation for next-generation mobile computers. The companies will collaborate to optimize PTEC core system firmware for SNDK’s solid state drives and Vaulter Disk to enable seamless operation, high performance and reduced power consumption for the rapidly growing mobile computing segment.
08:19 IPAS iPass: Recent cost cuts shouldbe evident in upcoming earnings report - Morgan Joseph (2.98 )

Morgan Joseph says Thursday, IPAS is scheduled to report its Dec quarter. Firm’s ests call for $48.0 mln and $0.02 (non-GAAP), within the co’s guidance of $48-50 mln and $0.00-$0.03. Firm is not expecting IPAS to present results above their expectations or its own guidance in that its business is fairly predictable, but more importantly, they look upon the Dec quarter report as an indication of the effect the recent reduction in headcount should have on operating results. Reduced operating costs should call attention to the cash generation capabilities of iPass’ business model. A growing broadband customer base and an engaged user base on iPass’ library of device clients points to the success the company is having in the open market. While growing broadband and software revenues nicely (+9% Q-Q in 3Q07), legacy dial-up revenues have plummeted at a rate greater than expectations through the first nine months of 2007.
08:18 Next up for credit-rating companies: SEC rules? - WSJ

WSJ reports the SEC may soon propose rules that require credit-ratings cos to disclose the accuracy of past ratings and distinguish between various products they rate, the first indication how the industry might be regulated in the wake of the subprime crisis. SEC Chairman Christopher Cox said the potential rules “would require credit-rating agencies to make disclosures surrounding past ratings in a format that would improve the comparability of track records and promote competitive assessments of the accuracy of past ratings.” He added that the SEC “may propose rules aimed at enhancing investor understanding” about the differences between how ratings are treated for standard municipal and corporate debt, as compared with innovative financial instruments crafted by Wall Street banks. Mr. Cox declined to give specifics of any possible rules. He said they are geared at fostering “healthy competition” that could involve highlighting and rewarding “successful past performance to punish chronically poor and unreliable ratings.” (MHP, MCO)
08:17 BRCM Broadcom initiated with an Outperform at Cowen (21.45 )

08:16 AMAT Applied Materials: Earnings preview - Caris (17.93 ) -Update-

Caris says AMAT will report 1Q08 (Jan) after the market close tomorrow. Firm expects AMAT will meet their ests of $2 bln and $0.20. However, they think F2Q order guidance will be weaker (-5% to -15%) despite the improving environment for flat panel equipment. AMAT has a strong share at the Taiwan DRAM companies and firm thinks the order outlook is significantly lower for these companies. Weak equipment fundamentals should drag down near term estimates, but the solar opportunity should prevent multiple degradation.
08:16 WIRES On The Wires

MGT Capital Investments (MGT) announceds that its subsidiary, Medicexchange, has signed a preliminary agreement to acquire the Chinese online business Maydeal.com… AMETEK (AME) announces that it has acquired Newage Testing Instruments, a privately held manufacturer of hardness testing equipment used in a broad range of industries, including aerospace, oil exploration and defense. Terms not disclosed… EMS Tech (ELMG) acquires Sweden-based Akerstroms Trux for ~$15.5 mln… PriceSmart (PSMT) announces that it has entered into a Settlement Agreement and Release with PSC, Tecnicard and Banco de la Produccion, and their affiliates, which resolves the previously announced disputes that had been pending between the co and the PSC Parties… American Financial Realty (AFR) announces that its fourth quarter 2007 results will be impacted by certain completed or anticipated asset sales activity resulting from the co’s continuing execution of its strategic portfolio-repositioning plan, as refined in conjunction with its merger agreement with Gramercy Capital (GKK)… Ashford Hospitality Trust (AHT) announces it has acquired a B-note mortgage loan totaling $38.0 million secured by an interest in the Ritz-Carlton Key Biscayne in Miami, Florida, and a mezzanine loan totaling $7.0 million secured by an interest in the Hotel La Jolla in La Jolla, California, both to be funded from on-going asset sales… Targanta Therapeutics (TARG) announces that it has submitted a New Drug Application to the FDA for its lead antibiotic candidate, oritavancin.
08:15 CG Carolina Group reports Q4 (Dec) results (80.58 )

Reports Q4 (Dec) earnings of $1.18 per share, may not be comparable to the First Call consensus of $1.37.
08:15 VPRT Vistaprint upgraded to Buy at Stifel- tgt $43 (35.79 )

Stifel upgrades VPTRT to Buy from Hold with a $43 tgt saying they believe VistaPrint is a high-quality and well-managed, disruptive company. The firm says the co’s “get big fast” strategy is working, as scale is the most important ingredient in this business to securing a durable competitive advantage.
08:14 CYNO Cynosure: 4Q07 preview - Needham (25.73 )

Needham says CYNO stands alone among the Aesthetic Technology cos that they follow as not having a stumble in 2007 and they don’t expect this quarter to be the first one. Although more competition is coming for the SmartLipo firm thinks that product already has brand recognition, domestic market penetration is still very low, and International sales should begin in the second half of 2008. Firm believes CYNO could be positioned to maintain a healthy growth rate despite some weakness in the general market. Firm rev est is $34.4 mln and represents 20% Y/Y growth. The consensus estimate is $34.9 mln and the range is $34.0-36.4 mln. Firm’s EPS est is $0.36 GAAP and $0.43 ex stock options expense. The consensus is $0.36 and the range is $0.33-0.37. They believe CYNO will have a good quarter and that the company is positioned to continue taking share in 2008.
08:13 LTR Loews Corp reports Q4 (Dec) results (44.73 )

Reports Q4 (Dec) earnings of $1.18 per share, includes EPS from Carolina group, doesn’t compare to the First Call consensus of $1.07.
08:13 POSS Possis Medical confirms it enters into agreement in which Medrad, a Bayer affiliate, will acquire the company for $19.50/share (14.35 ) -Update-

08:13 BAC Bank of America gets Wells notice - WSJ (42.16 )

WSJ reports the co said said it received a so-called Wells notice Feb. 4 from the SEC indicating the regulator’s intent to pursue the bank for violations of securities law. The possible civil charges relate to a wide-ranging investigation of bid-rigging of municipal-bond proceeds invested in guaranteed investment contracts. “We’ve cooperated with the SEC and will continue to do so,” said spokeswoman Shirley Norton. The bank has received Justice Department amnesty from criminal charges.
08:11 LTR prelim $1.18 vs $1.07 First Call consensus

08:11 KFT Kraft Foods: Chocolate bar makers raided in German probe - Reuters (29.81 )

Reuters reports investigators raided the German offices of chocolate bar makers Mars, Ritter, Nestle and Kraft, the cos said, on suspicion they colluded over price increases. A spokeswoman at the Federal Cartel Office said its antitrust investigators searched seven chocolate makers on Thursday, on suspicion of price fixing in the German mkt early this year. If the suspicion is confirmed, the co could be fined up to 10% of their annual sales. Nestle, Kraft Foods and Mars confirmed the raids at their offices and said they would cooperate fully with the authorities. Ritter also said its offices had been searched.
08:09 AMAT Applied Materials: 1Q08 preview - Stifel (17.93 )

Stifel says on Tuesday AMAT is scheduled to report 1Q08 (Jan) earnings results. They expect the co to generally meet their ests of $2.02 bln in rev and pro forma EPS of $0.22, excluding options ($0.20, including options). In total, firm does not expect many surprises in the co’s commentary when it comes to the current situation in the semi cap space. Firm believes that the FPD business had a strong bookings quarter, while initial orders on the thin film photovoltaic front could be recognized in 1Q08. Firm believes that both FPD and solar will continue to trend upwards over the next few quarters, which should provide Applied more stability in its earnings estimates versus its peers.
08:08 HBC HSBC Holdings seeks to shed French retail division- Daily Telegraph (71.44 )

Daily Telegraph reports the co is attempting to sell a large chunk of its French retail banking business, the disposal of which would reflect key demands by a rebel investor that it scales down its business in countries where it has little chance of market leadership. The Sunday Telegraph has learned that HSBC is trying to find a buyer for about half of its 800-strong French branch network - estimated to be worth about 2 bln pounds - which was part of the CCF group, for which HSBC paid $12.5 bln eight years ago. Its potential disposal will effectively scotch speculation circulating last week that HSBC is considering a bid for the stricken French bank Societe Generale.
08:08 CSL Carlisle Cos beats by $0.13, misses on revs (33.05 )

Reports Q4 (Dec) earnings of $0.66 per share, $0.13 better than the First Call consensus of $0.53; revenues rose 11.0% year/year to $675.5 mln vs the $689.7 mln consensus.
08:08 CXG CNX Gas estimates Appalachian recoverable reserves and net unrisked resource potential of 3.6 Tcf to 7.4 Tcf; proved reserves increase 6% to 1.3 Tcf (37.05 )

Co estimates that it has recoverable reserves and net unrisked resource potential of 3.6 Tcf to 7.4 Tcf, in an updated review of its Appalachian coalbed methane (CBM) reserves and shale resources. CNX Gas has proved reserves of 1,343 Bcf as of December 31, 2007, or up 6% from the 1,265 Bcf reported at year-end 2006. Reserves are split nearly evenly between the proved developed and proved undeveloped categories.
08:07 CNA CNA Financial reports Q4 (Dec) results (32.23 )

Reports Q4 (Dec) earnings from continuing operations of $0.59 per share, may not be comparable to the First Call consensus of $1.03.
08:06 GNTA Genta announces common stock offering of approximately $3.1 mln (0.70 )

08:06 PETD Petroleum Development tgt increased to $82 at Stifel (67.92 )

Stifel raises their tgt on PETD to $82 from $69. Firm says that while not official guidance, mgmt did provide a “what if” look through the remainder of the decade. Assuming flat annual spending, production could grow to 56 Bcfe by 2010. This is double 2007 production and implies a CAGR from 2007 of 26%, resulting in 2010E EBITDA of $316.5 mln. Given any exploration success in 2008 or 2009, they believe production could well be even higher in 2010. Importantly, this look to the future highlights the potential of the identifiable inventory at Petroleum Development. Given lower expected production, firm is lowering their 2008 DCFPS est to $11.96 from $12.58. The degree to which they reduced their est was lightened somewhat by improved per unit cost metrics. Firm est total operating costs of $5.35/Mcfe versus $5.59/Mcfe previously.
08:06 ONT On2 Technologies announces Infineon Technologies chooses On2 for video codecs (1.05 )

ONT announces that Infineon Technologies AG (IFX) has signed a multiple use license agreement for integrating the On2’s latest Hantro video accelerators. Under the terms of the agreement On2 will provide Infineon with several configurations of the codec solution; the format and resolution support are specified during the system integration phase of the chip projects thus providing Infineon with maximum flexibility to ensure they achieve an optimum combination of silicon area utilization and functionality for their target markets.
08:06 SRP Sierra Pacific reports Q4 (Dec) results, revs in-line (14.74 )

Reports Q4 (Dec) earnings of $0.02 per share, includes $40.9 mln after-tax gain from Tuscarora sale and $7.6 mln deferred energy disallowance, may not be comparable to the First Call consensus of $0.10; revenues rose 5.6% year/year to $786.6 mln vs the $787.5 mln consensus.
08:06 OSUR OraSure Tech and Schering-Plough sign international collaboration for rapid point-of-care oral Hepatitis C test (7.61 )

Schering- Plough (SGP) and OSUR announces an agreement to collaborate on the development and promotion of a rapid oral hepatitis C virus test utilizing OraSure Technologies’ OraQuick technology platform on a worldwide basis outside the United States.
08:04 KWD Kellwood enters into merger agreement with Sun Capital for $21/share; Board now recommends stockholders tender their shares (20.53 )

Sun Capital Securities announces that its affiliates have entered into a merger agreement with KWD under which Sun Capital will acquire Kellwood for $21.00 per share in cash. The merger agreement is contingent on the successful completion of Sun Capital’s pending $21.00 per share tender offer for Kellwood, which is conditioned on Sun Capital holding a majority of Kellwood’s outstanding common shares (including Sun Capital’s existing 11.4% stake) upon the completion of the tender offer.
08:04 MS Morgan Stanley denies report India BPO up for sale - Reuters (43.19 )

Reuters reports the co denied a newspaper report on Saturday which said it was putting its Indian business process outsourcing operation, Morgan Stanley Advantage Services, up for sale. Indian daily Mint, citing people close to the co, said in a front-page report that a sale of MSAS was “on the cards,” although Morgan Stanley had yet to start talks with potential bidders or appoint an external adviser. A statement from Morgan Stanley’s press agency said the report was incorrect. “Morgan Stanley has no plans to sell and confirms that it remains fully committed to Morgan Stanley Advantage Services which is a successful and important component to its business globally,” a spokesman said in the statement.
08:04 BKD Brookdale Senior Living co-CEO to Board, resigns as co-CEO (21.86 )

Co announces that Mark Schulte, BKD’s Co-CEO, was elected to the company’s Board of Directors effective Feb 7, 2008. In connection with his election as a director, Schulte resigned his position as Co-CEO, and will no longer serve as an officer of the company or its affiliates. Bill Sheriff, BKD’s Co-CEO, will remain as the sole CEO of the company.
08:03 CNA prelim $0.59 may not compare to $1.03 First Call consensus

08:02 CCOW Capital Corp. of the West downgraded to Neutral from Buy at FTN Midwest (16.97 )

08:02 SYS SYS Technologies reports Q2 EPS of $0.00 vs ($0.02) in yr ago period; reports revs of $18.1 mln vs $19.2 mln in yr ago period (1.89 )

Co sees Q3 revs of $19-20 mln. Co sees Y08 revs of $78-80 mln.
08:02 EFX Equifax authorizes additional $250-mln stock repurchase program (33.88 )

08:01 CSC Computer Sciences wins $482 mln Air Force contract (43.67 )

08:01 DRIV Digital River expands e-commerce agreement with Skype (31.69 )

Co announces that it expanded its e-commerce agreement with Skype. As part of the agreement, Digital River is now hosting all of Skype’s e-commerce operations and globally supporting the newly designed online Skype Shop.
08:01 GVA Granite Constr downgraded to Hold from Buy at BB&T (37.08 )

08:00 VCGH VCG Holding announces $22.0 mln acquisition; new club will add $0.14 to earnings per diluted share (13.48 )

Co announces that it has signed an agreement to acquire a large adult nightclub. The name and location will be kept confidential until the agreement closes, which the co expects to occur within 90 days. The transaction is contingent upon the issuance of all applicable permits and licenses and other customary terms. Co expects will be highly accretive to shareholders, adding ~$0.14 to annual EPS. Co had included this acquisition in previous EPS estimates for 2008 of $0.86-0.92 vs $0.86 First Call consensus and $1.15-1.25 for 2009.
08:00 S&P futures vs fair value: +2.8. Nasdaq futures vs fair value: +3.0.

Early indications suggest a slightly higher open for the stock market. News has been slow so far. A Wall Street Journal report that Yahoo! (YHOO) is going to reject Microsoft’s (MSFT) is garnering a good deal of attention this morning. The Journal states Yahoo is looking for $40 per share, compared to Microsoft’s current offer of $31 per share. The economic calendar is empty.
08:00 BMRN Biomarin Pharm: Survey and mgmt dinner affirm confidence in Kuvan launch; raising tgt to $45 (36.60 )

Jefferies notes their PKU survey results and recent meeting with BMRN mgmt increase their confidence in a robust 2008 Kuvan launch. The firm is increasing their tgt to $45 from $41. They expect the enrollment rate into the BPPS program to increase significantly as more clinics participate and PKU patients become aware of Kuvan. They continue to believe that there is upside to this average annual cost due to the likelihood of a higher average patient weight and physicians utilizing a higher dose.
07:59 CSL prelim $0.666 vs $0.53 First Call consensus; revs $675.5 mln vs $689.73 mln First Call consensus

07:59 News hitches in the markets may widen credit woes - WSJ

WSJ reports a widening array of financial-mkt problems threatens to trigger a new phase in the global credit crunch, extending it beyond the risky mortgages that have cost banks and investors more than $100 bln in losses and helped push the U.S. economy toward recession. In the past few days, low-rated corporate loans — the kind that fueled the buyout boom of recent years — have plummeted in value. As a result, banks are expected to try to unload some of those loans this week at fire-sale prices. Nervous buyers also have retreated in recent days from the mkt for securities backed by student loans and municipal bonds, roiling some corners of the short-term money mkts. Similarly, investors have recoiled from debt backed by commercial real estate, such as office buildings… Few mkt participants expect defaults on any of this debt to match the elevated levels seen in last year’s rout in the mkt for risky, or subprime, mortgages. But collectively, they threaten to deepen the financial system’s wounds and create a growing pileup of shaky assets on the books of banks… Meanwhile, the Federal Reserve’s interest-rate cuts, which were designed to reinvigorate the slowing U.S. economy, may be having unintended consequences in some quarters: sending investors fleeing from investments that do poorly when interest rates fall… Especially hard hit: the mkt for loans to big U.S. cos with low credit ratings. Problems in this mkt have been percolating for months… Having to liquidate portfolios of collateral is an added burden for banks, which already had $152 bln of loans they were trying to sell from buyouts of recent years. As the values of the loans they are holding decline, they could need to take additional write-offs. Market-value CLOs account for about 10% of the estimated $300 bln mkt for CLOs, according to research by J.P. Morgan… Problems are cropping up elsewhere in credit mkts. Money-mkt investors in the past have been large buyers of short-term instruments backed by tax-free municipal bonds and student loans. But they have been shunning these instruments — known by such names as auction-rate securities and tender-option bonds — because they fear the debt used to back the instruments will default or get downgraded by rating services. Thursday and Friday, Goldman Sachs Group held auctions of hundreds of mlns of dollars in securities backed by student loans, all of which failed to drum up enough demand at their asking prices.
07:59 AGN Allergan: Unwarranted botox safety concerns create buying opportunity - Jefferies (63.30 ) -Update-

Jefferies believes AGN’s dominance in aesthetics and solid core ophthalmology franchise, coupled with a diversified pipeline, should perpetuate secular growth that’s well north of Street expectations. Following the 6% decline in AGN shares on Friday, they believe concerns over Botox safety are greatly overdone, and advise using recent weakness in AGN shares as a buying opportunity.
07:57 LPNT Lifepoint Hospitals: Volume weakness louds visibility; lowering ests and tgt to $27.50 - Jefferies (24.95 )

Jefferies says 4Q07 results were slightly below expectations, while 2008 guidance was generally in-line with consensus. While valuation seems interesting, the outlook remains cloudy with weak volume trends and limited growth prospects. Bad debt stabilized sequentially, but one qtr provides little comfort given variability over the last several years. Firm cuts tgt to $27.50 from $35.00.
07:57 ABK AMBAC Fincl: CNBC commentator says source tells him there is cautious optimism in insurance dept that the bail out of three major bond insurers, MBI, FGIC, ABK can be worked out this week. (10.99 )

(ABK)
07:57 SXT Sensient reports Q4 EPS of $0.39 vs $0.36 two analyst estimate; reports revs up 10.3% yr/yr to $300.9 mln (26.19 )

Co sees Y08 EPS of $1.74-1.78, compared to previous guidance of $1.73-1.77.
07:54 BWINB Baldwin & Lyons downgraded to Market Perform at Morgan Keegan (25.65 )

Morgan Keegan downgrades BWINB to Market Perform from Outperform, based on the burden of excess capital, coupled with the lack of a consistent and definitive capital management program.
07:53 GTS Triple-S Management reports Q4 EPS of $0.62 vs $0.48 consensus; reports revs up 8.3% yr/yr to $398.7 mln vs $392.5 mln consensus (18.98 )

07:51 AAUK Anglo American: Anglo Platinum 07 net up 4.6%, Sees 08 output of 2.4 mln oz - DJ (29.04 )

DJ reports Anglo Platinum posted a 4.6% rise in 2007 net profit as stronger metal prices offset production problems during the period, but the mining co said output for the current year would be restrained by power shortages in South Africa. The co, recorded a net profit of 12.33 bln rand ($1.58 bln) for the year against ZAR11.92 bln in 2006. Sales revenue for 2007 was up 19% at ZAR46.62 bln. Refined platinum production for the year, which Angloplat in mid-November forecast would be between 2.45 mln and 2.5 mln ounces, was down 12% at 2.47 mln ounces due to reduced mining output and movements in process pipeline stocks. The co said refined output for 2008 would be about 2.4 mln ounces as it focused on safety in its mines and following production disruptions as South Africa’s state power generator was unable to supply sufficient electricity to mines across the country.
07:51 JCI Johnson Controls upgraded to Buy at Calyon- tgt $45 (33.43 )

Calyon upgrades JCI to Buy from Add and raises their tgt to $43 from $45 based on +the growing consensus that a weak first six months of 2008 will be followed by a period of economic strengthening with, importantly, the potential for accelerating auto sales in the U.S. as they enter 2009. The firm believes JCI’s fiscal first quarter performance demonstrates the co’s ability to perform well despite the deteriorating economic conditions experienced through December 2007.
07:50 YHOO Yahoo!: Continue to view a YHOO sale to MSFT as the most likely outcome - Citibank (29.20 )

Citibank notes today’s WSJ quotes a person saying YHOO is unlikely to consider any offer below $40 per share. While they are skeptical that YHOO is intrinsically worth $40 per share, they believe YHOO’s strategic value to MSFT is substantial. The firm views the odds of a successful competitive bid as very low (5% probability), the odds of a regulatory blockage as material but still low (10%) and some sort of Yahoo!-Google (GOOG) search outsource deal remains a possibility (25%). They view YHOO’s likely rejection to MSFT as not too surprising and would expect a response from MSFT, but not an immediate one.
07:49 SWIM Investools: Acquires Mytrade.com - Kaufman (12.80 )

Kaufman notes SWIM acquired Mytrade.com, which they view as a strategic move to expand its reach in education and trading to a younger, more web-based demographic, and to bring greater services to new and existing INVESTools clients. Firm believes this extends the co’s reach to more segments and demographics and should be complementary and supplementary to existing channels and clients. Further, they think the site enables more clients to integrate education and trading at all levels, starting from the newcomer to experienced traders. Finally,firm thinks it is a cost-effective method for Thinkorswim to gain new customers and build higher barriers to entry, as these are proprietary technologies integrating a highly effective and useful way, tapping into the trend of community-based activities.
07:48 YHOO Yahoo!: Set to reject MSFT bid - Oppenheimer (29.20 ) -Update-

Oppenheimer says over the weekend the Wall Street Journal reported that the YHOO board is set to reject MSFT’s $31/share bid. According to the WSJ, YHOO’s Board has decided to reject the bid as they believe it undervalues the co as well as does not take into account the potential regulatory risks associated with the transaction.Firm is not surprised by this move, as the YHOO Board continues to look for ways to maximize the cos value. YHOO appears to be looking for at least $40/share for the co. At the end of the day, they do not expect a rival bidder to emerge for YHOO as MSFT is best positioned to pay the highest price and has the most to lose should the asset fall into the hands of another company. Firm does not expect MSFT to hit YHOO’s $40 bid, but believe MSFT is likely to raise its bid enough to enable the YHOO Board to save face and agree to a takeover.
07:47 LNN Lindsay Manu upgraded to Market Perform from Underperform at Rodman and Renshaw- based on valuation (57.50 )

07:46 YHOO Yahoo set to revive merger talks with AOL after rejecting hostile takeover - Times of London (29.20 ) -Update-

Times of London reports the co is seeking to restart merger talks with AOL (TWX) as a means of defending itself against the $45 bln hostile bid approach from MSFT. It is understood that Yahoo! and its team of advisers from Goldman Sachs and Lehman Brothers have spent the past week evaluating possible tie-ups with media and technology cos that would save it from being swallowed by Microsoft. It is also understood that one option being explored is to restart merger talks with AOL (TWX). Tie-ups with groups such as GOOG or DIS are also being considered. Although Yahoo! and AOL previously failed to join forces because of differences over price, it is hoped that the urgency created by an unwelcome approach from Microsoft and an impending economic downturn will spur the two into new talks. Google, which offered support to Yahoo! when the Microsoft approach was made public, also has a 5% stake in AOL… A source close to Yahoo!’s thinking told The Times: “All they [Microsoft] are trying to do is pick off the company on the cheap. They’re trying to steal it. And the board is not going to let that happen. They have gone for a valuation that reflects the five-year low of the stock.” The source added: “It would have to be in the 40s to start talking, and we would have to get over regulatory issues. It would have to be an offer that would give Jerry Yang something to stand on a podium and smile about.”
07:46 MER Merrill Lynch can double earnings power over the next couple of years- Citigroup (52.19 )

Citirgoup anticipates that the franchise could earn in the $10-$12 bln range (vs their 2008 forecast in the $5 bln range) by capitalizing on several billion-dollar revenue opportunities in each of its major businesses. The firm says their analysis deconstructing Merrill’s R.O.E shows that the franchise could generate 20%+ R.O.Es over the cycle, which could result in a $100+ share price. They estimate that 250-300bps of ROE improvement can be driven by more efficient asset utilization and increasing pretax margin. Furthermore, eliminating the relatively outsized $100-$150 bln carry trade at Merrill should drive an incremental 50-100bps of ROE improvement.
07:43 AGN Allergan: Safety review unlikely to impact cosmetic use - Citigroup (63.30 ) -Update-

Citigroup says AGN shares tumbled almost 6% on Friday after the FDA provided an “early communication” regarding its ongoing review of systemic adverse reactions associated with botulinum toxin therapies. The FDA acknowledged that the “relative handful” of cases occurred mostly in children treated off-label for spasticity associated with cerebral palsy at doses from 100-700 units. For perspective, there have been an estimated 10m Botox procedures in the US over the past three years. None of the clinicians firm spoke to since the news have expressed any reservations about the use of Botox. Although the review is likely to result in a warning, they do not expect Botox volumes to be impacted.
07:43 POSS Possis Medical trading halted (14.35 ) -Update-

07:42 RIMM Research In Motion, Vodafon link up to develop consumer services for BlackBerry - CNN Money.com (89.71 )

CNN Money.com reports Vodafone (VOD) said it will collaborate with Research In Motion on the development of Vodafone consumer services for the co’s BlackBerry platform in a bid to gain broader adoption in the consumer segment.
07:42 SNP China Petroleum (Sinopec) upgraded to Buy from Hold at Deutsche Bank (112.09 )

07:40 RDS.A Royal Dutch Shell: Woodside buys North West Shelf assets - Sydney Morning Herald (67.53 )

Sydney Morning Herald reports Woodside Petroleum has agreed to buy Shell Australia’s 16.7% equity share in oil fields on Western Australia’s North West Shelf for almost $400 million. The $398.5 mln purchase is subject to standard regulatory approval and approval by the Woodside and Shell boards, and Woodside shareholders. Shell’s North West Shelf oil assets are held through Shell Development Australia Pty and include the oil giant’s share in the Cossack, Wanaea, Lambert and Hermes oil fields, the Cossack Pioneer production facility, the Egret oil discovery and the remaining oil exploration portfolio near the Cossack Pioneer facility. Woodside says these exploration assets are in a “tieback distance” to the facility, which means they are close enough for future oil flow be put through the existing production facility.
07:40 AAPL Apple: CItigroup top picks details (125.48 ) -Update-

As mentioned at 7:05 Citigroup added AAPL to their Citi Investment Research’s Top Picks Live list. The firm says after a 37% decline since the beginning of the year, they believe reductions to 1CQ iPod and iPhone build plans are fully reflected in the stock. These cuts have been cited in published research by several analysts in recent weeks. Moreover, the firm remains comfortable with their above-consensus 1CQ08 EPS estimate despite the cuts.
07:38 CHCG China 3C: Fund Manager profiles China 3C in WSJ (2.77 )

WSJ reports China’s thriving economy has opened a wild new arena for U.S. investors. But distance and the cultural divide can make it tricky to find the gems — and then they can get lost in translation. Consider what happened to Peter Siris, a New York hedge-fund manager, last August. During a conference call with China 3C Group, a Chinese retailer, somebody asked about “comp-store sales” — a common measurement of sales at stores open at least a year. The question stumped 3C’s executives. Other basic questions also went unanswered. That episode contributed to a selloff in 3C’s stock, which tumbled from more than $6 in August to about $4 in September. It closed at $2.77 on the OTC Bulletin Board Friday. Even though the co still has “lots of cash, no debt, strong earnings,” Mr. Siris said, the bad communication “killed it.” “Communication at China 3C has been awful, no one would dispute that,” said Joseph Levinson, a 3C director. (CHCG.OB)
07:38 WIRES On The Wires

Elron Electronic Industries (ELRN) announces that its Group co, Starling Advanced Communications, announced the signing of a Memorandum of Understanding with EMS Defense & Space Systems, a division of EMS Technologies (ELMG), to manufacture and market a new competitive, ultra-fast satellite-based Ku-band airborne antenna system that will supply highly advanced and cost effective two-way low profile broadband antenna systems for US commercial airlines… Pharmacyclics (PCYC) announces publication of data characterizing the company’s novel highly-selective histone deacetylase inhibitor. Results from the in-vitro study demonstrate that PCYCs’ proprietary H.D.A.C. inhibitor, PCI-34051, inhibits HDAC8 with 200-1000 fold selectivity over other HDAC enzymes.
07:36 SPSS SPSS Inc: Roth believes sell off following results and guidance overdone (31.00 )

Roth continues to like SPSS, as they believe that the sell off following Q3 results and guidance was overdone. SPSS already lowered the bar running into Q4, creating an extra margin of safety. The co could have a little more buffer than most of their names in a slowing economy, given significant international exposure (nearly 60% of rev), virtually no dependence on big deals, and fast R.O.I. The name trades at a VERY low multiple of only 8x FCF.
07:35 EJ E-House China initiated with a Positive at Susquehanna (16.50 )

07:35 BNT Bentley Pharm announces it appears patients on Nasulin reached primary endpoint for PPBS after two months (15.47 )

Co announces completion of treatment in an 80 patient multi-center open label, randomized, parallel group Phase II study in India to determine the safety and efficacy of add-on intranasal insulin spray in patients with type 2 diabetes mellitus on oral anti-diabetic therapy. The clinical study report is expected to be completed later this month, but preliminary clinical results are being released today.
07:33 POSS Possis Medical entered into a definitive merger agreement with Medrad to be acquired for $19.50/share (14.28 )

Co announces that it has entered into a definitive merger agreement pursuant to which Medrad (Bayer Healthcare affiliate) will acquire Possis Medical in a cash tender offer for $19.50 per share, or a total equity value of ~$361 million. The offer price represents a premium of ~39% over Possis Medical’s average closing price for the thirty days prior to February 8, 2008. The board of directors of Possis Medical has unanimously approved the transaction and resolved to recommend the offer to their shareholders. The transaction is structured as a tender offer, which the parties have agreed to commence within the next ten business days followed by a merger.
07:33 EZCH LanOptics, Ltd. reports Q4 non-GAAP EPS of $0.02 vs ($0.0 in yr ago period; revs up 70% yr/yr to $5.7 mln with no estimates (14.24 )

07:33 PHRM Pharmion and MethylGene announce orphan drug designation granted by the EMEA for MGCD0103 (70.35 )

Co announces that the European Medicines Agency and the European Commission designated MGCD0103, a histone deacetylase inhibitor, as an Orphan Medicinal Product for the treatment of acute myelogenous leukemia in the European Union.
07:33 YHOO Yahoo considers playing a Google defense - WSJ (29.20 ) -Update-

WSJ reports the co’s Board discussed its options Friday in the face of MSFT’s unsolicited offer to buy the Internet co, including an advertising-outsourcing pact with GOOG, people familiar with the matter said. Meeting by telephone, the Yahoo directors also discussed strategy for negotiating a higher bid from Microsoft in the event they pursue the offer, these people said. People in the Microsoft camp say they are confident their offer will succeed and they are willing to continue to wait as Yahoo deliberates. As time has passed, it has looked increasingly likely that Yahoo will have to negotiate with Microsoft because no other serious offers have emerged, said people familiar with the matter. Yahoo’s board is expected to meet in person in coming days to further discuss its options, said people familiar with the matter… Among the options Yahoo directors discussed was the possibility of abandoning its own search-advertising system, which generates significantly less ad revenue for each consumer search, and using ads from Google in return for a majority share of the revenue. Such a deal could increase Yahoo’s cash flow and give it more latitude to try to thwart the Microsoft approach. But antitrust experts say even such a pact with Google would likely raise red flags with regulators because of Google’s and Yahoo’s large shares of the Web-search and search-advertising mkts. Discussing the Google option with Yahoo directors Friday, Yahoo CEO Jerry Yang didn’t present it as a preferred choice, said people familiar with the matter.
07:32 SVR Syniverse Holdings: Data roaming transactions likely to favorably increase in Europe due to lower roaming charges - Brean Murray (15.61 ) -Update-

Brean Murray says last week the European Union telecom commissioner stated that regulators would intervene if operators didn’t reduce the prices they charge customers for using data services while abroad. Firm believes reduced data roaming charges in Europe will benefit SVR, as data usage transactions (which Syniverse processes) should increase due to lower operator pricing to users. Firm believes SVR will continue to benefit from strong growth of interoperability services, margin improvements, global expansion, and new infrastructure and financial clearing capabilities resulting from its acquisition of BSG Wireless. Also, the BSG Wireless European presence should enhance Syniverse’s ability to benefit from lower data roaming charges in the EU.
07:32 PTC PAR Technology reports $0.03 vs $0.00 First Call consensus; revs $60.2 mln vs $56.03 mln First Call consensus (7.03 )

07:31 DSX Diana Shipping announces long-term time charter contract for MV Alcyon With Cargill; anticipated to generate $59 mln in revs (28.05 )

07:31 ISR IsoRay reports Q2 EPS of ($0.12) vs ($0.09) single estimate; reports revs up 24% yr/yr to $1.8 mln vs $2.4 mln single estimate (1.25 )

07:30 SKX Skechers USA: 4Q preview; maintaining ests and continuing to expect strong FY08 - Brean Murray (19.38 )

Brean Murray says SKX will report 4Q07 results on Wed, Feb 13, after the market closes. Firm is modeling EPS of $0.31 for the quarter, or two cents above consensus, and at the top of mgmt’s guidance range. Excluding net cash of ~$4.50 per share, the firm trades at just 7.7x their FY08 EPS est, making it one of the cheapest brands in the footwear universe. In addition, with ~$13 tangible book value per share, the co trades at just 1.4x tangible book/share, or well below the industry average of 3.0x.
07:30 TASR TASER receives “significant” order from new foreign country (10.96 )

Co announces it received a significant order from the interior ministry of a foreign country to equip law enforcement officers within that country with a total of 3,000 ADVANCED TASER M26(tm) ECDs and related accessories. The order was received and is expected to ship in the first quarter of 2008.
07:30 LJPC La Jolla Pharm announces significant progress in its ongoing double-blind, placebo-controlled randomized Phase 3 trial of Riquent (3.21 )

Co announces significant progress in its ongoing double-blind, placebo-controlled randomized Phase 3 trial of Riquent, its drug candidate for systemic lupus erythematosus, including additional safety data on the trial’s higher doses. To date, 607 patients have been enrolled in the study at more than 130 clinical trial sites in 23 countries. Total enrollment in this event-driven trial is targeted for 740 patients and is expected to be complete around the end of the second quarter of 2008. The study requires a specified number of renal flare events to be observed.
07:29 Republican voters in Louisiana and Kansas choose Mike Huckabee; Washington state backs John McCain - CNN.com

CNN.com reports Republican voters in Louisiana and Kansas told John McCain they weren’t ready to support him. Washington state, however, backed the Republican front-runner Saturday over former Arkansas Gov. Mike Huckabee, according to state party officials. McCain’s camp congratulated Huckabee on the victories but with an air of confidence, saying that Huckabee threatened only to chip away at McCain’s substantial lead in the GOP race for the presidential nomination. “The reality is that John McCain is the presumptive nominee of our party,” said campaign spokesman Brian Rogers. “We’ll campaign in these upcoming states as long as Gov. Huckabee is in the race, but our main focus is on uniting the Republican Party for victory in November.”
07:29 PRICE Filings, Offerings, Pricings and IPOs

Filings: Avanir Pharmaceuticals (AVNR) files for a $25 mln mixed shelf offering… Ares Capital (ARCC) files for a $600 mln mixed shelf offering… Offerings: Carrizo Oil & Gas (CRZO) commences a 1.9 mln share common stock offering under an effective shelf registration statement.
07:28 DSCO Discovery Labs upgraded to Buy at Brean Murray- tgt $5 (1.96 )

Brean Murray upgrades DSCO to Buy from Hold with a $5 tgt saying after their recent visit to Discovery, they believe that management has sufficiently addressed the FDA’s concerns regarding Surfaxin stability and that the co has taken the proper steps to sufficiently address and satisfy all other outstanding chemical manufacturing controls issues.
07:26 Obama rolls into Potomac primaries after weekend sweep - CNN.com

CNN.com reports Illinois Sen. Barack Obama carries momentum from a sweep of weekend contests into this week’s primaries in Maryland, the District of Columbia and Virginia. New York Sen. Hillary Clinton, meanwhile, is coming off a campaign shake-up, while her advisers are seeking to lower expectations for this month’s Democratic contests. Obama came out ahead in Sunday’s Democratic caucuses in Maine after wins in Saturday’s Louisiana primary and Democratic caucuses in Nebraska, Washington and the U.S. Virgin Islands. With 99% of precincts reporting in Maine, Obama was leading Clinton 59% to 40%. At stake are 24 delegates to August’s Democratic national convention in Denver. Those contests gave him a lead over Clinton in pledged delegates to the convention, but Clinton still held a narrow edge over Obama when “superdelegates” — elected officials and party leaders — are included in the tally, according to CNN estimates.
07:24 Hearing Brazilian banks initiated with an Attractie at tier 1 firm

Hearing Brazilian banks initiated with an Attractive, also initiating Banco Bradesco (BBD) with a Buy, Banco Itau Holding (ITU) with a Neutral and Unibanco (UBB) with a Sell.
07:22 MBI MBIA Inc: Warburg Pincus discloses 16.5% stake in SC 13D, pursuant to Dec. 10th investment agreement (14.60 )

Earlier this morning, Warburg Pincus disclosed a 16.5% stake in an SC 13D filing. The firm states “On December 10, 2007, WP X entered into an Investment Agreement with MBIA. Pursuant to the terms of such Investment Agreement, on January 30, 2008, the date of the closing, (i) WP X purchased a total of 16,129,032 shares of Common Stock for an aggregate purchase price of $500,000,000 and (ii) WP X received warrants exercisable for a total of 16,129,032 shares of Common Stock. On February 6, 2008, WP X entered into an Amended and Restated Investment Agreement with MBIA, and MBIA announced a $750,000,000 public offering of Common Stock.”
07:21 FSLR First Solar: Expect good 4Q07 results, modest increase in FY08 guidance- BofA (173.19 ) -Update-

BofA expect solid 4Q07 results. They forecast that FSLR will report upside to the Street’s 4Q07 EPS estimate of $0.53 due to higher selling prices, higher production, and lower stock-based compensation expense than in 3Q07. They do not anticipate that 4Q07 results will show nearly the same outperformance as in 3Q07, when FSLR exceeded the Street by almost $0.30. However, they believe FSLR’s 4Q07 EPS should come closer to our Street-high estimate of $0.64 than the Street’s $0.53 estimate. They continue to believe that FSLR enjoys the best model in the P.V business due to its 1) strong visibility on revenue due to long-term contracts and 2) lack of reliance on silicon.
07:20 CSTR Coinstar: Redbox now selling used DVDs; technology provides an effective way to manage inventory and increase profitability - Merriman (31.97 )

Merriman says with continued coin-counting build-out and contributions from various acquisitions and investments, we believe Coinstar is positioned to benefit from its cost-efficient operational structure and “4th Wall” strategy — driving both accelerated revenue growth and higher margins. Firm discovered that the Redbox kiosks now offer the option of purchasing previously-viewed DVDs for $7.00. They assume these are DVDs that were previously rented through the kiosk but are now past the normal “new release” window. Firm ests Redbox has the ability to generate as much as $100 mln in rev through the sale of used DVDs by 2010. And given that their Redbox rev model of $289 mln in 2008, $491 mln in 2009, and $706 mln in 2010 is based on rental rev only, they believe a good portion of this could be incremental.
07:19 SWN SW Energy: Friedman Billings says to buy ahead of earnings (58.07 )

Friedman Billings says they will buy SWN ahead of its Feb 28 earnings date in anticipation of Fayetteville Shale results continuing to get better. Based on weekly AOGC data, firm believes that average Fayetteville IP rates for wells drilled in 4Q07 could average 2210 Mcf/d, up from 1836 Mcf/d in 3Q07, 1473 Mcf/d in 2Q07, and 1208 Mcf/d in 1Q07. Improving initial production rates and longer production histories showing stable decline rates will be the catalysts in the quarterly results release that should allow this name to continue moving up. Although they now believe that the stock is approaching fair valuation, with expectation of initial results improving and plenty of real option value not captured in their DCF-based valuation. Firm increased their tgt from $60 to $64.
07:19 AUY Yamana Gold profiled in New America section of IBD (15.53 )

IBD reports Peter Spina, chief investment analyst at GoldSeek.com, says several short-term factors make gold attractive. Credit problems, inflationary pressures and the weakening U.S. dollar are contributing to investor anxiety and pushing gold higher. “People are sensing the instability, which is causing people to want to buy hard assets,” Spina said. “The primary reason is lack of confidence in the financial system.” Yamana Gold CEO Peter Marrone agrees with Spina’s assessment that in a time of instability, gold historically does better than other assets and is considered a store of wealth. Yamana is a Canadian miner with nine operating mines plus seven more to open over the next five years in North and South America. It also produces significant quantities of copper, silver and zinc. While Marrone says he believes the gold price is high, he has his own perspective on the subject. In 1980, he says, gold reached its highest price, peaking just above $800. In today’s dollars, that would be the equivalent of about $2,000, according to Marrone. “With the economic instability,” he said, “I’m very confident saying that we are in this perfect storm for gold prices to be at these levels and to go higher.” Rising gold prices benefit a company with some of the best-quality mines in South America. “Global mine production peaked in 2001 and has fallen every year since,” O’Carroll said. “Lower output should help boost gold prices going forward.” “Yamana is one of the lowest-cost miners in the industry,” he said. Yamana benefits not just from rising gold prices and production increases, O’Carroll says, but from better efficiency in mining operations as well.
07:19 SVR Syniverse Holdings upgraded to Buy at ThinkEquity- tgt $22 (15.61 )

ThinkEquity upgrades SVR to Buy from Accumulate and raises their tgt to $22 from $20 saying they see an era of ramping call volumes based on steadily declining roaming charges, great traction for UMA/Wi-Fi FMC services, and new femtocell technologies ready for deployment in 2H08. The firm says their new model reflects starkly improved 2008 guidance for the BSG Clearing business with a more-predictable competitive environment and customers consolidating their vendor relationships.
07:18 BW Brush Engineered Materials: New opportunities and higher adoption should drive growth in a tough environment - Broadpoint Capital (24.99 )

Broadpoint Capital notes BW reported 4Q:CY07 operating EPS of $0.35 on revenues of $236 mln, which was in line with firm’s ests of $0.35 on $230 mln but below consensus ests of $0.40 on $237 mln, respectively. Firm believes CY08 guidance implies a close to 15% organic growth. Firm believes that new business opportunities and higher adoption of perpendicular media should be able to drive growth for Brush in a tough economic environment. A conservative 10% year-over-year rev growth assumption leads firm to their CY08 and CY09 EPS est of $2.00 and $2.50, respectively.
07:18 BTU Peabody Energy tgt raised to $67 at FBR (53.88 )

Friedman Billings raises their tgt to $67 from $64 following BTU earnings, which were slightly below consensus expectations. However, the co issued much weaker-than-expected full year 2008 guidance due to 1) continued Australian bottlenecks, 2) weak U.S./AU dollar, 3) higher costs (diesel, tires), 4) an unplanned PRB dragline outage, and 5) conservatism on its uncontracted met coal. These items will hit 1Q08 the hardest, but the upside above guidance lies in 2Q08-4Q08 from locking in its high quality coking coal, which has reached $275/tonne.
07:17 CEPH Cephalon: Provigil concerns overblown; shares not reflecting Treanda potential - FBR (59.58 )

Friedman Billings says CEPH will report its 4Q07 results after the close on Feb 12. Firm is slightly lowering their sales ests to better reflect prescription (Rx) trends for Provigil and Fentora, but they still expect diluted EPS to beat the Street est of $0.78 (firm’s new EPS est is $0.83). Concerns on Provigil, which they believe are unwarranted are weighing on CEPH shares. Though the drug is maturing, firm believes this is already reflected in CEPH’s 2008 CNS franchise rev guidance of $975 mln-$1 bln.
07:16 SIVB SVB Financial Group tgt cut to $50 at FBR (48.38 )

Friedman Billings cuts their tgt on SIVB to $50 from $58. Firm says it should be on the short list of stocks to own as they pull through the cycle. However, firm expects some near-term weakness as the consensus est falls to catch up with the nose-dive change of rates from the Fed, and they expect the stock to fall to the $44 to $46 range. Firm believes that the best time to buy SIVB is a few months before the Fed raises rates, but they think that the credit cycle will be both long and relatively deep and, therefore, do not expect the Fed to raise rates in 2008.
07:16 BIDU Baidu.com: Recent share weakness may have reflected weakness resulting from several external factors - Susquehanna (233.91 )

07:11 LCAV LCA Vision beats by $0.01, misses on revs (17.23 )

Reports Q4 (Dec) earnings of $0.22 per share, $0.01 better than the First Call consensus of $0.21; revenues rose 12.3% year/year to $62.9 mln vs the $63.9 mln consensus.
07:10 WIRES On The Wires

American Mold Guard (AMGI) announces that it has signed a letter of intent with Robert Goldsworthy to acquire from Goldsworthy certain intellectual property related to mold and bacteria decontamination, disinfectants and various antimicrobial products… AECOM Technology (ACM) announces that it has agreed to acquire Tecsult, an international engineering firm based in Montreal, Quebec, Canada, that serves clients in a variety of markets, including energy, transportation, facilities and environmental.
07:08 GYI The auction of Getty Images appears to be stalled - NY Times (26.62 )

The NY Times reports the auction of Getty Images (GYI) appears to be in jeopardy, people briefed on the matter said on Sunday. Though several bidders, mostly private equity firms like Kohlberg Kravis Roberts, Bain Capital and Providence Equity partners, had expressed interest last month, Getty received no offers significantly above its current market value of $1.6 bln, these people said.
07:08 DCP Dyncorp Intl: Hearing downgraded to sell from neutral at tier 1 firm (17.56 )

07:07 UPI Uroplasty reports Q3 EPS of ($0.06) vs ($0.07) in yr ago period; reports revs up 73% yr/yr to $3.7 mln with no estimates (3.95 )

Co sees Y08 revs of approx $13.5 mln.
07:07 RTN Raytheon: Hearing upgraded to neutral from sell at tier 1 firm (65.55 )

07:06 ATI Allegheny Tech: Hearing upgraded to buy from neutral at tier 1 firm (76.60 )

07:06 SKYW SkyWest reports a 3.4% increase in RPMs for January (25.31 )

Co reported a 3.4% increase in revenue passenger miles for January, while available seat miles increased 5.1% compared to the same period last year. The combined airlines generated 1.31 bln RPMs for the month, while ASMs increased to 1.84 bln. Load factor was down 1.2% age points to 71.0% compared to 72.2% for the same period last year. Passenger boardings for January totaled 2,525,151 a 1.6% increase over January 2007.
07:06 USS US Shipping reports Q4 EPS of ($0.07) vs ($0.11) consensus; reports revs up 18% yr/yr to $43.5 mln vs $40.9 mln two analyst estimate (11.14 )

07:05 RS Reliance Steel: Hearing downgraded to neutral from buy at tier 1 firm (50.32 )

07:05 CALLS Early Research Calls IV

Miscellaneous: UBS initiates Mack Cali (CLI 33.67) to Neutral tgt $35… UBS initiates Brandywine (BDN 18.45) with a Neutral… RBC initiates Darden Restaurants (DRI 26.86) with an Outperform… Citigroup adds Apple (AAPL 125.4 to their Top Picks list.
07:05 CPHD Cepheid appoints Senior VP, Chief Financial Officer to mgmt team (30.85 )

Co announced that Andrew Miller will be joining Cepheid as Senior Vice President, Chief Financial Officer on April 14, 2008, and will assume responsibility for worldwide financial operations and investor relations. Miller replaces John Sluis, who retired from Cepheid effective December 31, 2007.
07:04 TLCV TLC Vision reports Q4 same store total procedures +2.5%, with January procedures up +14.3%. (2.14 )

07:04 GMXR GMX Resources announces new present value of year end reserves; no material changes in reserve quantities (26.00 )

Co announced that, in connection with a routine review of the Co’s annual report on Form 10-K for the year ended December 31, 2006 by the staff of the SEC, the Co received additional comments from the SEC staff on February 7, 2008 regarding the year end natural gas prices used in the Co’s calculation of the present value of the estimated net revenues from proved reserves. Based on these comments, the Co will use different period end natural gas prices to calculate PV10 and the standardized measure of discounted future net cash flows. The use of these new period end prices does not materially affect previously reported proved reserve quantities. Accordingly, there will be no change to the Co’s previously reported financial condition, results of operations or cash flows.
07:02 CALLS Early Research Calls III

Downgrades: Piper Jaffray downgrades Castle Brands (ROX 1.95) to Neutral from Buy… Thomas Weisel downgrades Zumiz (ZUMZ 20.01) to Market Weight from Overweight… UBS downgrades CBL & Associates (CBL 23.75) to Neutral from Buy… Oppenheimer downgrades Independent Bank (IBCP 12.20) to Underperform from Perform noting 4Q07 results missed the mark by over 40%, and the firm’s FY08 outlook was reduced while shares of IBCP are up an unexplainable 31% year-to-date. The firm says the economy in Michigan, where the bank conducts business, continues to deteriorate. Based upon a more peer-like valuation relative to tangible book, the firm feels the stock could trade down to $9-$10/share… Oppenheimer downgrades First Merit (FMER 21.29) to Underperform from Perform saying much has been accomplished at FirstMerit since the arrival of a new chairman/CEO in May ‘06. The firm feels all the good news is more than priced into the stock today and that the real challenge for FirstMerit will be to generate consistent revenue growth… Credit Suisse downgrades BT Group (BT 45.02) to Underperfom from Neutral… Credit Suisse downgrades Centene (CNC 21.42) to Neutral from Outperform… Credit Suisse downgrades Level 3 (LVLT 3.00) to Neutral from Outperform… RBC downgrades Microsoft (MSFT 28.56) to Sector Perform from Outperform… Thomas Weisel downgrades Volcom (VLCM 19.17) to Market Weight from Overweight.
07:02 VRAD Virtual Radiologic reports Q4 EPS of $0.14, ex-items, vs $0.10 in yr ago period; reports revs up 41% yr/yr to $22.9 mln with no estimates (17.16 )

Co sees Y08 EPS of $0.87-0.87, ex-items; co sees revs up 33-39%, resulting in revs of $115-120 mln.
07:02 PRW Pro-Pharamceutical says new data shows Davanat extends survival of end-stage colorectal cancer patients more than 6 months (0.57 )

Co announces that new data of 14 end-stage colorectal cancer patients from its Phase II trial showed that Davanat extended median survival by more than six months. The patients entered the trial with disease that progressed despite previously being treated with standard chemotherapies and biologics such as Avastin and/or Erbitux. Two patients survived more than two years and one patient is alive today. The interim data is for 14 of 20 patients who were enrolled in the trial. The data also revealed a significantly reduced level of toxicity as measured by serious adverse events.
07:01 BABY Natus Medical announces integration and restructuring; reaffirms Q1 revs of $34.5-$36 mln (vs consensus of $35.2 mln consensus) (16.98 )

Co announces that it has adopted an integration and restructuring plan that is designed to eliminate redundant costs resulting from prior acquisitions and to improve efficiencies in operations. Under the plan, the co will centralize the research and development activities supporting each of the co’s three main product families. In addition, the co will eliminate redundancies in North American field sales and service personnel resulting from the acquisition of Xltek. Finally, the co will eliminate certain production resources as it continues to outsource assemblies to contract manufacturers. In addition to the termination of employees in some facilities, the plan provides for the hiring of new employees in others to staff up the required functions. On Dec 18, 2007, the co communicated its financial guidance for the full year and Q1 2008. In light of the nominal cost benefit of the plan in 2008, the co is not changing that guidance. For Q1 ending March 31, 2008, the co expects revenue to range from $34.5-$36 mln (vs consensus of $35.2 mln) and EPS to range from $0.09-$0.10 (vs $0.10 consensus). For the full year, the co expects to report rev of approximately $160 mln (vs $158.8 mln consensus) and EPS of $0.68-$0.70 (vs $0.68 consensus).
07:00 LCAV prelim $0.22 vs $0.21 First Call consensus; revs $69.7 mln vs $63.87 mln First Call consensus

06:57 AGN Allergan comments on and provided support for the FDA’s “Early Communication” regarding a safety review of botulinum toxins in the US (63.30 )

Late Friday night, AGN commented on and provided support for the FDA’s “Early Communication” regarding a safety review of botulinum toxins in the United States. ” While the use of BOTOX for the treatment of juvenile cerebral palsy is approved in approximately 60 countries and has been used by health care practitioners in the United States for well over a decade, it is not currently an FDA-approved use of the product in the United States. As the FDA confirmed in its public teleconference today, however, the off-label use of the product in the United States for this ailment is left to the medical judgment of the health care practitioner and the FDA’s current review should not be interpreted to mean that the FDA is suggesting that this particular use is inappropriate. With respect to the therapeutic use of BOTOX(R) to treat juvenile cerebral palsy and other lower limb spasticities, one should keep in mind that the population, treatment paradigms and typical dosing of product is significantly greater than some of the other approved uses of the product, including specifically the FDA-approved use of BOTOX Cosmetic to treat wrinkles between the brows. In particular, the FDA on its teleconference pointed out that this population of patients tends to be “very sick” and that, sadly, this population is generally subject to greater than usual serious adverse events and a higher mortality rate than a healthy population, regardless of the use of the product… Importantly, the FDA confirmed in the teleconference that none of the adverse events that are the subject of its review relate to a death involving the use of BOTOX Cosmetic for an aesthetic use. The FDA’s conclusion is consistent with Allergan’s safety analysis. “
06:53 Hong Kong stocks slide 3.6 pct after holiday; Sensex ends down 834pts

Japan’s Nikkei stock average fell 1.4% on Friday, extending losses as investors sold machinery stocks. The broader TOPIX index declined 1.4% or 17.94 points to 1,287.14. Hong Kong’s Hang Seng fell 853.35 points to 22,616.11… India’s Sensex opened 38 points lower at 17,427, and slipped deeper into red as the day progressed. Heavy selling in mid-noon trades saw the index plunge to a low of 16,458 - down 1,007 points from the previous close. The Sensex finally ended with a loss of 834 points (4.8%) at 16,631. (Reuters, Business Standard)
06:53 European stocks fall on lingering credit fears

European stocks fell on Monday, adding to last week’s sharp losses, because of persistent concerns over the impact of tighter lending on the economy. At 0936 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,295.33 points. The index lost 3.7 percent last week, hit by fears of a U.S. recession and worries that financial institutions have not yet revealed the full impact of the credit crisis on their books… Germany’s DAX index was down 0.7%, the UK’s FTSE 100 index down 0.4% and France’s CAC 40 down 0.5%. (Reuters)
06:42 SCOP Scopus Video Networks reports Q4 EPS of $0.01, ex-items, vs ($0.03) in yr ago period; reports revs up 37% yr/yr to $16.5 mln with no estimates (4.73 )

06:36 CRZO Carrizo Oil & Gas commences a 1.9 mln share common stock offering under an effective shelf registration statement (50.19 ) -Update-

06:36 SCKT Socket Communications reports Q4 EPS of ($0.01) vs ($0.04) in yr ago period; reports revs up 26% yr/yr to $6.8 mln (0.69 )

06:35 CALLS Early Research Calls II

Upgrades: JP Morgan upgrades Frontline (FRO 42.33) to Neutral from Underweight… JP Morgan upgrades General Maritime (GMR 25.51) to Overweight from Neutral… UBS upgrades Glaxosmithkline (GSK 42.16) to Buy from Neutral… UBS upgrades SRA Int’l (SRX 24.80) to Neutral from Sell… Merrill Lynch upgrades Forward Air (FWRD 29.44) to Neutral from Sell… Bear Stearns upgrades Napster (NAPS 1.63) to Outperform from Underperform… Merrill Lynch upgrades Agnico-Eagle (AEM 63.54) to Buy from Neutral… Merrill Lynch upgrades Kinross (KGC 22.19) to Buy from Neutral… Morgan Stanley upgrades CEMEX (CX 26.07) to Equal Weight from Underweight… Jefferies upgrades Northeast Utilities (NU 27.23) to Buy from Hold and lowers their tgt to $30.50 from $31.00, based on valuation. Downgrades: JP Morgan downgrades Arlington Tankers (ATB 20.87) to Underweight from Neutral… JP Morgan downgrades Tsakos Energy Navigation (TNP 35.30) to Neutral from Overweight… UBS downgrades Unilever (UL 31.55) to Neutral from Buy… Citigroup downgrades Telecom Italia (TI 28.53) to Hold from Buy… Bear Stearns downgrades UTI Worldwide (UTIW 17.03) to Peer Perform from Outperform. Miscellaneous: Broadpoint initiates NGAS Resources (NGAS 4.99) with a Buy and sets a $10.50 tgt, based on a meaningful position in the emergin Devonian Shale play and anticipate 25% per annum volume growth through ‘09, excluding horizontal drilling success, due to its base vertical well program and expected benefits stemming from infrastructure build-outs… Broadpoint initiates BPZ Resources (BZP 14.71) with a Buy and sets a $19 tgt, as the co appears well positioned for significant future reserve and production growth, due to successful oil projects in its offshore Block Z-1, long-term potential from exploration, and an integrated gas-to-power project.
06:34 BER W.R. Berkley beats by $0.02, beats on revs (29.95 )

Reports Q4 (Dec) earnings of $0.97 per share, $0.02 better than the First Call consensus of $0.95; revenues rose 2.9% year/year to $1.4 bln vs the $1.38 bln consensus.
06:33 CRZO Carrizo Oil & Gas announces proved reserves reach record 347.6 Bcfe; current net production reaches estimated 76 MMcfe/d (50.19 )

Co announce year-end proved reserves were a record 347.6 Bcfe based on reports from Carrizo’s third-party reserve engineers. Production during the fourth quarter of 2007 was a record 5.64 Bcfe, or 54% above the 3.66 Bcfe (39.7 MMcfe/d) of production in the fourth quarter 2006 and 27 percent above the third quarter 2007 production. The Company has established an initial 2008 capital budget of approximately $300 mln.
06:33 HAS Hasbro beats by $0.03, beats on revs (25.87 )

Reports Q4 (Dec) earnings of $0.84 per share, $0.03 better than the First Call consensus of $0.81; revenues rose 16.2% year/year to $1.3 bln vs the $1.22 bln consensus.
06:32 SCLN SciClone Pharma and Sigma-Tau report promising interim results from Phase 3 Hepatitis C trial (1.98 )

Co and Sigma-T