Data Feed

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 ($0.08) 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 125.48) 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-Tau report promising blinded interim data from a large, randomized phase 3 clinical trial evaluating ZADAXIN in combination with pegylated interferon alpha and ribavirin as a treatment for patients with hepatitis C virus (HCV) who have not responded to prior therapy with pegylated interferon alpha and ribavirin. Full unblinded data from the trial will be available in the third quarter of 2008.
06:31 PNM PNM Resources reports Q4 ongoing EPS of $0.11, includes charges, may not compare to $0.28 consensus; reports revs of $401.7 mln (19.05 )

06:28 ACOR Acorda Therapeutics reports Q4 EPS of ($0.48) vs ($0.31) consensus; reports revs of $11.2 mln vs $11.1 mln consensus (22.93 )

06:26 NTII Neurobiological Tech. reports Q2 EPS of ($0.36) vs ($0.19) consensus; reports revs of $3.7 mln vs $3.74 mln consensus (2.64 )

06:24 S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: -2.0.
06:24 European Markets

FTSE…5769.10…-14.90…-0.3%. DAX…6750.39…-16.89…-0.3%.
06:24 CALLS Early Research Calls I

Downgrades: Keefe, Bruyette downgrades American Express (AXP 44.98) to Market Perform from Outperform and lowers their tgt to $49 from $58, following a recent change to the firm’s base-line macroeconomic assumptions to call for a weaker economy and AXP’s Semi-Annual Meeting last week… Baird downgrades W.W. Grainger (GWW 76.65) to Neutral from Outperform and lowers their tgt to $86 from $97, based on uncertainty of a recently unsealed federal lawsuit accusing Grainger of overcharging the U.S. Government as well as relabeling materials produced in restricted countries… Baird initiates Gladstone Capital (GLAD 17.10) with a Neutral and sets a $19 tgt, as a subdued FY08 NOI/DVPS growth outlook combined with valuation expansion impediments (ongoing credit market turmoil, investor angst over credit risk, and a slowing growth profile) leaves limited visibility of catalysts to drive material near-term price appreciation. Miscellaneous: Caris initiates SanDisk (SNDK 26.61) with a Sell and sets a $20 tgt, as they expect cuts to consensus earnings estimates combined with multiple compression on slowing growth to drive another leg down for shares while they conclude NAND will remain in oversupply in the near-term as major players add manufacturing capacity in an effort to gain market share ahead of an expected acceleration of demand, driven primarily by Solid State Drives for mainstream computing… Rodman & Renshaw initiates Targeted Genetics (TGEN 1.06) with a Market Perform, as they find shares to be attractive but believe a lack of key near-term drivers as well as the absence of definitive proof-of-concept data for its lead arthritis program (due YE08), will lead to shares trading in tandem with the biotech indices.
06:24 Asian Markets

Nikkei…Holiday……… Hang Seng…22616.11…-853.35…-3.6%.
06:23 CFC Countrywide, ACORN partner on guidance for home retention efforts (6.58 )

Co and the Association of Community Organizations for Reform Now have reached an agreement that will further enhance the process for “helping borrowers who are delinquent on their subprime loan payments find home retention solutions and avoid foreclosure.” Countrywide and ACORN have partnered to formalize workout programs for borrowers with all types of subprime loans, not just hybrid adjustable rate mortgages with pending rate resets. Further, the agreement addresses home retention options and procedures for borrowers in various stages of mortgage delinquency, not just borrowers who are current in their payments. In these ways, the initiative broadens the approaches of Countrywide’s previously announced $16 billion home retention initiative, and the industry-backed HOPE NOW(R) alliance program.
06:12 WIRES On The Wires -Update-

Ascent Solar Technologies (ASTI) announces the purchase of a large scale manufacturing facility expected to house the co’s new world headquarters and planned commercial manufacturing operations.
06:07 BRLC Syntax-Brillian announces delay of Q208 earnings and provides preliminary Q208 update and an inventory repurchase (2.27 )

Co announces it needs additional time to complete its financial statements for its second fiscal quarter ended December 31, 2007. The co needs additional time in order to evaluate its accounting treatment related to its tooling deposits. As a result, Syntax-Brillian will not release its Q208 results on February 11th, as previously anticipated. At this time, no date has been set for the second quarter release. The co recently received indications that due to a delay in the build out of the 2008 Beijing Olympic facilities, a large number of LCD TVs already sold through their distributors in China had not been deployed. As a result, Syntax-Brillian initiated negotiations to repurchase the LCD TVs for redistribution primarily into the N. American retail channel. The inventory repurchase reduces accounts receivable from our customers in China by $99 mln.
06:02 Subprime losses could rise to $400 bln – Financial Times

Financial Times reports senior global policymakers have raised projections for the size of subprime-related credit losses in a move that implies financial institutions will have to increase write-offs. Speaking after the meeting of Group of Seven finance leaders, Peer Steinbruck, German finance minister, said the G7 now feared that write-offs of losses on securities linked to US subprime mortgages could reach $400 bln. This is sharply higher than the $120 bln credit losses that Wall Street banks and other institutions have revealed in recent weeks — and also far bigger than the US Federal Reserve’s estimates for subprime losses last year of $100 bln-$150 bln. But G7 finance ministers admitted that it remained unclear where much of this subprime pain would eventually emerge, not least because the path of the credit crunch was still uncertain. Mr Steinbruck and other ministers appealed to financial institutions to provide “prompt and full disclosure” of losses, to restore confidence.
05:59 Delta, Northwest may merge after union talks – Bloomberg.com

Reuters reports Delta (DAL) may reach a merger agreement with Northwest Airlines (NWA) that would form the world’s largest carrier, two people familiar with the talks said. Delta and Northwest have shared details of a proposed combination with Air Line Pilots Association chapters at each carrier, the people said. Union leaders will study how to mesh seniority lists, said the people, who asked not to be identified because the plan is still private. An announcement of the merger may come within weeks, one of the people said. The carriers have declined to confirm merger talks that others, including Northwest’s pilot union, say are under way.
05:55 RTP Rio urges shareholders to take no action on BHP bid – Reuters (413.26 )

Reuters reports the chairman of Rio Tinto (RTP) wrote to shareholders on Sunday, urging them to take no action on a bid for the co by rival BHP Billiton (BHP). “The Rio boards unanimously rejected this proposal because it significantly undervalued Rio Tinto and its prospects,” Paul Skinner said in a letter to shareholders. Skinner said shareholders should take no action if contacted by BHP Billiton about the offer. “BHP Billiton’s announcement is not a firm offer for your shares or ADRs,” he said in his letter to shareholders. “There is currently no formal offer for you to consider. You do not need to take any action.”
05:47 CAH Cardinal Health could be regaining its strength – WSJ (60.44 )

The Wall Street Journal reports Cardinal Health (CAH) appears to be getting back on its feet after three years of instability. Last month, Cardinal appointed George Barrett as vice chairman and chief executive of its drug and medical-supply distribution division. In addition, the co has renewed a contract with one of its biggest customers and has a generic version of a cardiac drug about to hit the shelves. In addition to Mr. Barrett’s appointment, there are some other signs Cardinal may be on the mend. Analysts expect that the more profitable part of its business — medical supplies and services — will improve. Goldman’s Randall Stanicky estimates that by 2010, 40% of Cardinal’s profit will come from the higher-growth, higher-margin clinical- and medical-products part of its business, up from 33% today. And he forecasts that the co will perk up in the latter half of this calendar year. As part of its recent earnings, Cardinal announced that it had completed an early renewal of its contract with Walgreen (WAG), one of its biggest customers, and a generic version of heart drug Cardiolite will also give the company a late-year boost. Cardinal’s generic-drug distribution business has major growth potential because a wave of popular brand-name drugs are expected to come off patent over the next few years. Once generics come to market and dozens of manufacturers vie for market share, prices drop to pennies per pill, widening the profit spread.
05:41 Chavez threatens oil cutoff in Exxon spat – WSJ

The Wall Street Journal reports Venezuelan President Hugo Chavez threatened to cut off oil sales to the U.S. over an escalating fight between Exxon Mobil (XOM) and the nation’s state-controlled oil co. But Venezuela is considered unlikely to act in a way that hurts U.S. oil supplies long-term, reflecting the nation’s dependence on the big U.S. oil market and its need for petrodollars. The fight involves Venezuelan properties Exxon walked away from last year after Mr. Chavez’s administration took a majority stake. In recent weeks, Exxon won orders in courts in the U.S., the UK and elsewhere to freeze assets owned by state-controlled Petroleos de Venezuela in order to ensure payment if Exxon wins an arbitration case over the issue. “If you end up freezing [Venezuelan assets] and it harms us, we’re going to harm you. Do you know how? We aren’t going to send oil to the United States,” Mr. Chavez said yesterday in his weekly radio-and-television address, the AP reported.
05:38 Motorola and Nortel in talks to combine wireless-infrastructure units in a joint venture – WSJ

The Wall Street Journal reports Motorola (MOT) and Nortel (NT) are in talks to combine their wireless-infrastructure units in a joint venture, said people familiar with the situation. The talks, which are separate from efforts also under way at Motorola to possibly shed its handset division, show the steps Motorola’s new chief executive, Greg Brown, is contemplating to restructure the co. If consummated, the talks will create a joint venture that likely will have sales of about $10 bln, combining businesses that make network equipment for wireless phone carriers. It is an area of the industry that has suffered in recent years as wireless carriers in the U.S. and overseas consolidate, giving them greater bargaining leverage over equipment makers. The JV talks have been under way for nearly a month and are heating up, the people said. The scenario under discussion now is a venture majority owned by Nortel, with Motorola owning a minority stake. The companies had considered taking 40% each of the venture, with the other 20% to be held by a financial investor. But that idea was discarded after they had trouble finding a source of private equity.
05:35 Societe Generale prices rights issue at discount – WSJ

The Wall Street Journal reports Societe Generale Monday priced at a heavy discount a EUR 5.5 bln ($7.98 bln) rights issue while also raising its net profit forecast for 2007 and announcing almost EUR 600 mln worth of new write-downs. The rights issue offers existing shareholders one new share worth EUR 47.50 each for every four shares they currently hold — almost 40% below SocGen’s Friday closing share price of EUR 77.72. The bank said the subscription period will run from Feb. 21 to Feb. 29. At the same time, SocGen said it now expects 2007 net profit of EUR 947 million, down from EUR 5.22 bln in 2006, but warned that this figure depends on the outcome of the continued investigation into activities at its investment bank and may be revised again. The bank also said write-downs linked to fallout from the U.S. subprime-debt crisis would be EUR 2.6 bln, compared with the EUR 2.05 bln announced in January. Included in this figure was a EUR 1.25 bln write-down on its portfolio of non-hedged CDOs, EUR 947 mln on counterparty risk related to bond insurers, and EUR 325 mln on its residential mortgage-backed securities trading portfolio. The bank also announced a number of new targets following an efficiency study launched last year. It said it aims to raise gross operating profit by EUR 1 bln a year by 2010 by rationalizing its activities.
05:29 YHOO Yahoo’s rejection pressures Microsoft to mull a new bid – WSJ (29.20 )

The Wall Street Journal reports Yahoo’s (YHOO) rejection of Microsoft’s (MSFT) buyout bid will test whether the MSFT is willing to pay a lot more for YHOO — or risk a truly hostile takeover attempt. Microsoft may sweeten its offer, say people familiar with the matter. But any increase is likely to fall short of what Yahoo’s directors believe would fairly value the co. People close to Microsoft say the co is reluctant to launch a proxy fight to push out Yahoo’s board. A fight could increase the odds that key Yahoo employees will leave the co, these people say. It is more likely to pursue less-hostile options, such as recruiting big shareholders to put pressure on Yahoo to negotiate with Microsoft for an acceptable price. Yahoo directors concluded after a meeting Friday that the unsolicited offer “massively undervalues” Yahoo, according to a person familiar with the situation. The board plans to send a letter to Microsoft today, spelling out its position. Analysts have expected Microsoft to increase its $31-a-share offer. But Yahoo is pressing for at least $40 a share, according to a person familiar with the matter. Such a premium would increase the value of Microsoft’s original cash-and-stock bid by more than $12 bln. Meeting by telephone Friday, Yahoo directors discussed a range of options, including strategy for negotiating a higher bid from Microsoft in the event they pursue the offer, people familiar with the matter said. They also discussed the option of abandoning Yahoo’s own search-advertising system and using ads from Google (GOOG), in return for a majority share of the revenue, these people said.
05:24 Early Newspaper Headlines: YHOO/MSFT – MOT/NT – XOM – CAH – RTP/BHP – DAL/NWA

WSJ: Yahoo’s (YHOO) rejection pressures Microsoft (MSFT) to mull a new bid… Societe Generale prices rights issue at discount… Motorola (MOT) and Nortel (NT) in talks to combine wireless-infrastructure units in a joint venture… Chavez threatens oil cutoff in Exxon (XOM) spat… Cardinal Health (CAH) could be regaining its strength. Reuters: Rio (RTP) urges shareholders to take no action on BHP (BHP) bid. Bloomberg.com: Delta (DAL), Northwest (NWA) may merge after union talks. Financial Times: Subprime losses could rise to $400 bln.
05:08 WIRES On The Wires -Update-

Bechtel Group and ConocoPhillips (COP) have been awarded the contract in competitive bidding for Angola LNG Ltd’s first gas-liquefaction facility that will be near Soyo in Zaire Province on the Atlantic coast.
05:07 BWP Boardwalk Pipeline misses by $0.04, misses on revs (30.68 )

Reports Q4 (Dec) earnings of $0.54 per share, $0.04 worse than the First Call consensus of $0.58; revenues fell 0.9% year/year to $169.9 mln vs the $181.5 mln consensus.
05:05 INXI INX guides Q407 revenue lower (8.09 )

Co issues downside guidance for Q4 (Dec), sees Q4 (Dec) revs of $57.0 mln vs. $61.99 mln First Call consensus. Co says gross margin on both product revenue and service revenue is within their long-term target ranges of 15%-19% for product revenue adn 30%-35% for service revenue.
04:08 VOLVY AB Volvo names Mikael Bratt Chief Financial Officer (12.80 )

01:31 WIRES On The Wires -Update-

Cell Therapeutics (CTIC) announces that pixantrone was shown to reduce the severity of clinical manifestation in the animal model of the autoimmune disease myasthenia gravis… Elbit Systems Ltd. (ESLT) announces that its U.S. subsidiary, Kollsman, an Elbit Systems of America, LLC, co was awarded a $26.5 mln delivery order under a previous Indefinite-Delivery/Indefinite-Quantity contract for Thermal Laser Spot Imagers with accessories and logistic support from the U.S. Marine Corps Systems Command.
01:23 PCL Plum Creek Timber mentioned negatively in The Trader – (40.81 )

Barron’s reports the task of meeting high expectations at Plum Creek Timber (PCL) has become more difficult. New construction and remodeling use up about 40% of timber volume produced, but nearly two-thirds of it in dollar value, and a prolonged housing slump will hurt. Meanwhile, costs – from diesel to debt-servicing – have increased. Yet Street analysts seem to have factored in only a brief trim in profit growth, expecting per-share earnings to pull back from $1.37 in 2007 to $1.26 this year before rebounding to $1.52 by 2009. Timber companies have responded to slack demand by leaving more trees in the ground – a fine-enough temporary solution that, over the longer haul, swells inventory and hurts pricing power. Plum Creek looks expensive by any measure. Jim Grant of Grant’s Interest Rate Observer calculates the adjusted EV for each core timberland acre and finds Potlatch (PCH) offers the better bargain. Plum Creek shares also trade at 3.8x book value – compared with 2.6 for Potlatch and 1.4 for forest-products companies. Shares are also trade at 30x cash flow, compared to about 17x for Potlatch and another timberland co, Rayonier (RYN), or 32x 2008 earnings, compared with 8.3x for Potlatch and 13x for specialized REITs.
01:20 SPWR SunPower mentioned positively in Barron’s (66.37 )

Barron’s claims the sell off in shares of SunPower (SPWR) are overdone, and shares coud rise again. SunPower’s multiple doesn’t seem high in light of forecasts that earnings will grow by 40% to 50% at least through 2010. If the co can meet ‘09 forecasts and trade up to 40x earnings – the low end of its expected growth rate – the stock would sell for more than 130. The elimination of the corporate tax credit likely would have a bigger impact on earnings; corporations can deduct 30% of the cost of solar systems from their taxes. If that tax credit isn’t extended, the co plans to shift many of its commercial sales to Europe and Japan, where it already operates. More recent concerns about SunPower center on an expected pick-up in the supply of polysilicon and a resultant drop in prices. This could lead lesser players to produce more, and create a solar-panel glut. SunPower fully expects panel prices to fall, but aims to expand its margins to offset any decline. The co hopes to reduce the cost of a system by 50% by 2012, in part because efficiencies will increase as volumes rise.
01:19 ISCA International Speedway mentioned positively in Barron’s (41.80 )

Barron’s reports shares of International Speedway (ISCA) are in better shape for a downturn after putting some problems behind it, and a big chunk of its earnings for this year is already locked in, thanks in part to long-term broadcasting contracts with the likes of ABC/ESPN and Fox Sports. Result: The 10%-plus growth in earnings that some bulls are forecasting may be entirely doable. Trading at a reasonable 13.7x the consensus earnings estimate for this year, shares could trade up to 50, bulls figure. So far, ticket sales are holding up. Advance ticket sales are off only 1% or 2% from last year’s pace, and that is partly explained by some tracks allowing fans to make the buys closer to the races this year. Total revenues for the co may climb by only 1% from last year’s $816 mln, but that’s still ahead of likely rises in costs. Last year’s results were hurt when the co’s plans to expand into New York and Seattle were scuttled by political opposition. But this year, the New York failure could turn into a payday for the co, says John Fox, an analyst with Fenimore Asset Management, an International Speedway investor. The co, he points out, is looking to sell the 676 acres in New York’s Staten Island that it bought to build a track, and that should yield more than $100 mln.
01:18 FMX Femsa mentioned positively in Barron’s (52.43 )

Barron’s reports Femsa (FMX) could generate 20% growth in earnings over the longer term, exceeding the expected growth rate of bigger rivals such as Anheuser-Busch (BUD). Shares now trade at 17x expected earnings, above the p/e multiples of other brewers and bottlers, but notably below the co’s long-term growth rate. By some calculations, Femsa could be worth more than 60 a share. “Relative to its growth rate, it’s awfully attractive,” says Pieter Stalenhoef, emerging-markets analyst at Evergreen, and a “steady” buyer of Femsa shares in Q4. “This year, when capital preservation is key, this is my favorite name in Mexico,” he says. Stalenhoef thinks Femsa ought to trade for 20x his 2008 earnings estimate of $2.40 a share, which would put the stock’s value closer to 50. The shares are even more appealing based on EV to Ebitda. The market values Femsa at 7x EV/Ebitda, compared with an average multiple of 9 times accorded its global peers. Femsa investors such as Todd Lowenstein, of HighMark Capital Management, argue the co’s conglomerate structure obscures these operations’ true value. Using average industry multiples of EV/Ebitda, he figures Coke Femsa could be worth 19 and Comercio 17 per Femsa ADR. Add in the beer business at a relatively conservative 9x EV/Ebitda, and Lowenstein gets a sum-of-the-parts value of 64. He argues investors are getting the beer business “essentially free.”
01:16 Food stocks mentioned positively in Barron’s

Barron’s reports the recent selloff in food stocks could create opportunity in stocks such as Kellogg (K), General Mills (GIS), Heinz (HNZ) and Kraft (KFT), as most food shares look reasonably priced and many offer secure dividend yields of 3% or more. Excluding Hershey (HSY) and Wrigley (WWY), which are richly valued, food stocks fetch an average of 15x projected 2008 earnings, versus a range of 17 to 19 in the past four years. Some could have upside potential of 15% or more in the next year, while the downside risk seems limited, given such low valuations. Kellogg could hit 60, while General Mills could rise into the mid-60s. David Driscoll, a Citigroup food analyst who recently upgraded both stocks to Buy from Hold, says food stocks generally have done well relative to the S&P 500 during recessions. There may be similar upside in ConAgra (CAG). Nestle (NSRGY) looks appealing because its core food business is growing rapidly, but it carries a p/e of under 14. So far, at least, food companies have been able to pass through sharply higher prices for corn, wheat, cocoa and other inputs, including packaging and energy. “When commodity inflation is this high for so long, food-industry executives don’t debate what to do — they raise prices,” says Citi’s Driscoll.
01:15 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Whole Foods (WFMI), Wellcare Health Plans (WCG) and SAVVIS Inc (SVVS).
01:14 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on Schering-Plough (SGP), Mastercard (MA), Wellpoint (WLP), ConocoPhillips (COP), Sirius Satellite Radio (SIRI) and Urban Outfitters (URBN).
01:13 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Friday’s edition, Jim suggests Gafisa (GFA), Brazil’s No. 2 homebuilder, and notes Gafisa’s growth has been sparked by a recent change in the country’s housing laws that allows banks to repossess defaulting properties in a fraction of the time previously allowed. The result: Brazilian banks have stepped up their lending activity now that the risk-reward equation has swung in their favor. Brazil has seen an 80% growth in the number of mortgages, and Cramer said Gafisa will benefit. EPS is expected to grow 203% and revenue by 53%, he noted.
01:11 WIRES On The Wires

deCODE genetics (DCGN) announces the launch of deCODE PrCa, a reference laboratory test for common, single-letter variations in the human genome that the co has associated with increased risk of prostate cancer… VeriSign (VRSN) announces its intentions to locate a new Regional Internet Resolution Site in India… Brightpoint (CELL) announces that it has entered into a distribution agreement with Google (GOOG) to distribute Google services.
01:05 CHTT Chattem announces voluntary recall of Icy Hot Heat Therapy product (80.50 )

01:00 BLDR Builders Firstsource announces preliminary Q407 results (7.34 )

Co issues downside guidance for Q4 (Dec), sees EPS of ($0.55)-($0.60), includes non-cash charges of $0.20 net of tax, related to goodwill and asset impairment charges, the write-off of deferred financing fees related to its old credit facility, and cash charges of $0.04, net of tax, related to severance and other items, vs. ($0.13) First Call consensus; sees Q4 (Dec) revs of approx $300.0 mln vs. $346.18 mln consensus. Co expects in Q4 to have positive operating cash flow between $11.0-13.0 mln.