Trading for the Masses

Slowly getting back to the screens after taking some much needed time away over the past 12 days or so during Prez Week. Last week I saw the market chop and flop all week during the four days we were open and today it appears we have broken out of the range to the upside. What does it all mean? Oil thru the roof new highs right now @ 101’s, Gold hanging near highs, grains still rushing the top end. What inflation. Interest rates moving up still. Trade em smartly. VIX down to 21.7 and looking like 18-20 in our sights before a top is in for this market. It’s still a Fed controlled market, ain’t nothing changed there!!

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Updated: 26-Feb-08 08:58 ET
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Today’s In Play
08:58 SY Sybase and Sandell Asset Management reach agreement; co to commence a $300 mln modified ‘Dutch Auction’ self tender offer; Sandell agrees to support Sybase Director (27.28 )

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08:58 Bill Gross issues March Investment Outlook

Bill Gross issues his March Investment Outlook, saying ” Old Maid now has a second life mimicking our financial markets, and at PIMCO we’ve played it frequently in our Investment Committee over the past several months. “Who’s got the ‘Old Maid’?” we ask over and over again — not to make us feel good that we don’t — but to make sure we won’t draw it when its holder tries to pass it on. This shunned lady in asset form was originally identified as a subprime mortgage, aggregated into levered financial conduits which in turn were guaranteed to be AAA hotties either via their securitized structures or the solemn pledge of monoline insurance firms. No Old Maids in those hands, investors were assured; they were Babes with a stacked deck. Ah, but Father Time has a way of exposing plastic surgery and there have been implants aplenty in recent years. Most of the silicone to be sure involved mortgage-related assets — first the subprimes, then the Alt As, and now perhaps even levered primes… This parlor game is best defined by leverage and not the assets that have been dealt out to more than willing players over the past decade. That subprimes have garnered the headlines is only because they were the asset class that failed first. Now as the U.S. economy slows to what Alan Greenspan labels “stall speed,” levered structures holding commercial loans, and auto and credit card receivables are the new Babes in waiting — waiting to be exposed for what some of them could be: Old Maids with collagen carelessly injected by Moody’s and S&P… And so the game goes on and on. Its most recent twist involves an asset class known as Auction Rate Preferred Stock and the astounding revelation that its holders didn’t even know they were playing cards to begin with. Holders of ARPS — mostly wealthy investors, but also the likes of Bristol-Meyers and other visible corporations — thought they were holding AAA assets with money market liquidity. In this case, most of the assets probably are AAA, but the liquidity has suddenly evaporated, transforming them from a 30-day to potentially a 30-year asset. The assets on these Maids it appears are real but they have come with a marriage license… Still, we would both agree that value is returning to many parts of the bond market. If an investor requires 5%+ yields to compensate for future inflation, then they can increasingly be found in authentic AAA assets — not disguised Old Maids… And if Washington gets off its high “moral hazard” horse and moves to support housing prices, investors will return in a rush.
08:57 GM General Motors says no production impact from American Axle strike yet - DJ (24.20 )

(AXL)
08:56 MSCC Microsemi: Checks suggest relative strenght in analog business - AmTech (22.35 )

AmTech says their recent checks suggest MSCC’s high performance analog business will likely outperform its peers. Firm believes the business will be flat to down 2% Q/Q, which is considerably better than the analog industry. The only real area of weakness for MSCC is the industrial and semicap equipment segment, which was already factored into overall March quarter rev guidance of up 2%-4% Q/Q. Furthermore, with strong ramps expected in the inverter business and in the power amp business with Atheros, they also feel comfortable with the June quarter consensus rev ests. Firm believes MSCC’s relative outperformance will turn into absolute performance as defense price increases and seasonal demand for notebooks and LCD TVs kicks in.
08:55 BA Boeing: Tanker award finally here, now onto the protest - AmTech (84.66 )

AmTech says the pending $40 bln tanker award is finally here, with all expectations leaning towards a win by BA. Firm says the $40 bln 10-year award covering 179 aircraft is expected as early as today, as the Defense Acquisition Board signed off on the multi-year contract on Monday afternoon. According to firm’s sources, the USAF very much liked both of proposals, which means that it is possible of potential future orders for the A330 in the next buy in 2012. The congressional support this program has been intense, which they believe favored BA despite the aggressive price for the A330 from the NOC-lead team. Firm has estimated the tanker award adds roughly $0.20 per share to annual EPS ests for BA, much of which has being priced into the stock recent days. Firm remains sellers on any strength.
08:55 DELL Dell: AmTech anticipates solid Q; near-term expectations overly pessimistic but long-term issues remain (20.14 ) -Update-

AmTech says DELL is due to report January quarter results this Thursday after the close. Based on firm’s supply chain checks, they anticipate DELL to beat consensus ests of $16.2 bln in rev and $0.36 in EPS by $100-200 mln and $0.01-0.02 (AmTech at $16.4 bln and $0.38). DELL has benefited from PC strength and a favorable component environment. Given the large number of buy ratings on the stock, firm is somewhat surprised that consensus ests are factoring in below seasonal rev growth for the Jan quarter. For the April quarter, they believe DELL will likely decline to offer official guidance, but express comfort with seasonal patterns. Firm believes shares may be oversold and due for a relief rally.
08:47 HPGP Hiland Holdings upgraded to Strong Buy from Outperform at Raymond James (23.29 )

08:47 TDS TDS and U.S. Cellular to delay earnings announcements (48.91 )

Telephone and Data Systems and United States Cellular Corporation (USM) said that the companies require additional time to complete the review of their year-end financial results. Both companies expect to complete the review, announce year-end results and file their Securities and Exchange Commission Forms 10-K for the year-ended Dec. 31, 2007 on or before Feb. 29, 2008. The companies had expected to release 2007 year-end results on Tues., Feb. 26, 2008.
08:45 RDS.A Royal Dutch Shell: PetroChina quits bid for Shell’s OML 125 Block - This Day (72.90 )

This Day reports few months after CEO withdrew its bid for the RDS.Al OML 125, PTR has also quit its bid for the same block. Both cos were told that their bids, at around $300 mln to $400 mln, were too low for Shell’s nearly 50% stake in block OML 125, the Beijing-based source familiar with the matter said. Although the source did not provide the production level of the block. “Both companies were told their bids were below other competitors,” said the source. The Centre of Petroleum Information, an industry information service, has reported that Shell owned 49.8% and E owned 50.2% of OML 125, which produces about 24,000 barrels of oil per day. The source said Shell’s sale of the block was part of the oil major’s restructuring programme initiated last November, after its oil production facilities in the Niger Delta came under repeated militant attacks and lost significant production.
08:44 DELL Dell: January sell-through at Best Buy/Staples confirms DELL is gaining share - Pac Crest (20.14 )

Pac Crest notes that January sell-through at Best Buy/Staples confirms DELL is gaining share. The firm says DELL retail share gains come at expense of Acer/Lenovo, not HPQ. The firm has increasing confidence that DELL’s retail sales should >$1 bln in 2008. They think the 18% sell-off YTD appears overdone.
08:40 MTL Mechel Steel announces agreement on a long-term partnership with Russian Railways (122.16 )

Co announces that it has signed an agreement on a long-term, mutually beneficial partnership with Russian Railways. Mechel will provide RZhD OAO with rolled products for transportation purposes, which will be manufactured at Mechel’s subsidiaries.
08:40 ECONX January PPI Follow Up - Fuels Inflation Fears

January PPI rose 1.0%. That was well ahead of expectations of +0.4%. The core rate was up 0.4%, also ahead of expectations. PPI stands at 7.4% on a year-over-year basis, and the core rate is at 2.3%. The continued pressures from food and energy, which were up 1.7% and 1.5%, respectively in January, will increase the recently increased inflationary concerns. This is a growing problem not just for the stock market, but for the bond market as well. The CPI January data, which normally come after the PPI data, were released last Wednesday, with the total rate up 0.4% and the core rate up 0.3%.
08:39 FMCN Focus Media: Snowstorms are not likely to impact FMCN’s Q1 - Citigroup (50.77 ) -Update-

Citigroup notes that over the past few weeks, there has been significant investor concern that the snowstorms that hit China before C.N.Y. may impact FMCN’s 1Q advertising revs. This concern was heightened by the fact that BIDU blamed its weaker-than-expected 1Q rev guidance on the inclement weather. In contrast, the firm does not believe FMCN will likely feel any material negative impact.
08:37 TGT Target beats by $0.01, reports revs in-line (53.25 )

Reports Q4 (Jan) earnings of $1.23 per share, $0.01 better than the First Call consensus of $1.22; revenues rose 0.8% year/year to $19.87 bln vs the $20 bln consensus. TGT Q4 comparable store sales up 0.2%. Co said, “As we enter 2008, we remain keenly focused on the disciplined execution of our core strategy, positioning Target to deliver improved financial results, even in the face of continued challenges in the current economic environment.”
08:36 KNDL Kendle upgraded to Overweight from Equal Weight at First Analysis (39.42 ) -Update-

08:36 TNC Tennant misses by $0.03, beats on revs; guides FY08 EPS in-line (34.17 )

Reports Q4 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.03 worse than the First Call consensus of $0.53; revenues rose 9.4% year/year to $182.6 mln vs the $177 mln consensus. Co issues in-line guidance for FY08, sees EPS of $2.25-2.40 vs. $2.30 consensus.
08:36 MCCC Mediacom Comm misses by $0.26, reports revs in-line; guides FY08 revs in-line (4.61 )

Reports Q4 (Dec) loss of $0.36 per share, $0.26 worse than the First Call consensus of ($0.10); revenues rose 6.2% year/year to $332.5 mln vs the $331.4 mln consensus. Co issues in-line guidance for FY08, sees FY08 revs of ~$1.37-1.38 bln vs. $1.37 bln consensus.
08:35 BRL Barr Pharma confirms patent challenge of Avodart soft gelatin capsules, 0.5mg (49.21 )

Co confirms that its subsidiary, Barr Laboratories, has initiated a challenge of the patents listed by GlaxoSmithKline (GSK) in connection with its Avodart soft gelatin capsules, 0.5mg. The co believes that it is the first to file an Abbreviated New Drug Application containing a paragraph IV certification for Avodart.
08:34 DIVX DivX: Overhang removed with Stage6 shutdown; trading at trough levels - ThinkEquity (12.06 )

ThinkEquity views the shutdown of DivX’s Stage6 video site as more positive than negative as the reduction in bandwidth savings far outweigh any adverse impact from reduced Yahoo!-related revenues they believe the download traffic from Stage6 helped derive. Firm says despite the noise created by a proposed sale, delay, and now decision to shutdown Stage6, they believe DivX’s fundamentals remain positive, and expect it to deliver upside when it reports on March 11. The fimr says the stock is trading at a discount to its peers and historical forward trough valuation, and with roughly $4 in net cash per share, they would recommend buying DIVX at these levels.
08:33 FTO Frontier Oil reports Q4 (Dec) results, misses on revs (37.64 )

Reports Q4 (Dec) earnings of $0.41 per share, includes after-tax hedging loss of $0.30 and a after-tax inventory gain of approx $0.39, may not be comparable to the First Call consensus of $0.46; revenues rose 21.4% year/year to $1.32 bln vs the $1.52 bln consensus.
08:33 VNO Vornado Rlty Trust misses by $0.14 (90.14 )

Reports Q4 (Dec) funds from operations of $1.29 per share, excluding non-recurring items, $0.14 worse than the First Call consensus of $1.43.
08:33 GLOI GlobalOptions Group renews contract with Gallagher Bassett in deal worth $15 mln (1.88 )

Co announces that its Fraud & SIU Services division has signed a three-year contract renewal with Gallagher Bassett Services. GlobalOptions Fraud & SIU unit will serve as a preferred provider of investigative services for Gallagher Bassett and will perform SIU and surveillance services to assist in exposing potential insurance fraud.
08:32 PRAN Prana Biotech announces ’success’ in Phase IIa clinical trial of PBT2 in early Alzheimer’s disease (4.10 )

Co announces that PBT2 has demonstrated safety and tolerability and reduced Abeta 42, in a Phase IIa study of PBT2 in patients with early Alzheimer’s Disease. PBT2 also improved Executive Function performance in select cognitive tests. Analysis of the trial data demonstrated that the safety and tolerability profile of PBT2 at both doses was indistinguishable from that of placebo. There were no study withdrawals related to adverse events. There was no serious adverse event in any PBT2 treated patient. The study also demonstrated the impact of PBT2 on reducing Abeta 42 in the cerebrospinal fluid that surrounds the brain and spinal cord, considered a key biomarker for Alzheimer’s Disease. Specifically, PBT2 at the 250mg dose showed a highly significant reduction in CSF Abeta 42 compared to placebo. The effect of PBT2 was dose related.
08:32 ESV Ensco beats by $0.11, beats on revs (58.19 )

Reports Q4 (Dec) earnings of $1.66 per share, $0.11 better than the First Call consensus of $1.55; revenues rose 12.5% year/year to $529.2 mln vs the $517.7 mln consensus.
08:32 S&P futures vs fair value: -5.8. Nasdaq futures vs fair value: -6.8.

Futures slide on a higher than expected inflation reading. January Produce Price Index (PPI) rose 1.0% month over month, compared to the expected rise of 0.4%. Excluding food and energy, PPI rose 0.4% month over month, higher than the consensus estimate that called for a rise of 0.2%. That leaves PPI up 7.4% year-over-year and PPI ex food and energy is up 2.3%. In earnings news, retailer Macy’s (M) reported earnings that beat expectations by $0.05, and guided FY09 EPS in-line with current estimates. Target (TGT) topped its earnings estimates by a penny.
08:31 TNC sees FY08 $2.25-2.40 vs $2.30 single estimate

08:31 Equity futures see initial sell-off following hotter than expected PPI data… Dow futures drop ~40 pts, SPX futures drop 4 pts

08:31 AAPL Apple introduces new MacBook and MacBook Pro models (119.74 ) -Update-

Co announces its updated MacBook and MacBook Pro notebook lines with the latest Intel (INTC) Core 2 Duo processors, larger hard drives and 2GB of memory standard in most models. In addition, MacBook Pro includes the latest NVIDIA (NVDA) graphics processors, now with up to 512MB of video memory, and AAPL’s Multi-Touch trackpad, first introduced in MacBook Air. The new MacBook and MacBook Pro models are now shipping and available. The 2.1 GHz, 13-inch white MacBook, has a suggested retail price of $1,099; the 2.4 GHz, 13-inch white MacBook, has a suggested retail price of $1,299.
08:31 ESV prelim $1.66 vs $1.55 First Call consensus; revs $529.2 mln vs $517.72 mln First Call consensus

08:31 TNC prelim $0.50, ex items vs $0.53 First Call consensus; revs $182.6 mln vs $177.00 mln First Call consensus

08:30 MFLX Multi-Fineline names new CFO (19.41 )

Co announces that it has named Thomas Liguori as its new chief financial officer and executive vice president. Craig Riedel, who has been with MFLX as its chief financial officer since November 1992, has been named vice president and corporate controller.
08:30 MERR MCF Corp. authorizes stock buy-back plan for up to one million shares (5.08 )

08:30 ECONX PPI y/y +7.4% vs +7.3% consensus

08:30 FTO prelim $0.41 vs $0.46 First Call consensus; revs $1.32 bln vs $1.52 bln First Call consensus

08:30 ECONX Core PPI y/y +2.3% vs +2.2% consensus

08:30 ECONX PPI m/m +1.0% vs +0.4% consensus

08:30 ECONX Core PPI m/m +0.4% vs +0.2% consensus

08:28 GNTX Gentex announces additional 4 mln share repurchase under its existing share repurchase plan (15.80 )

08:28 BONDX Losing Steam

The market is giving up its modest gains into the open as sentiment is mixed on the data due. Prices leaned higher overnight as some of yesterday’s drop was nibbled at but that appears to be waning. Globally bond were sold on better-than expected data and that has helped nudge equities and sentiment in a positive direction eating away at the flight-to-quality bid. If such sentiment carries over into today’s trade the downside looks to be plumbed. The 2-10-yr yield spread continues to kick around 178.6. Bond prices in the EuroZone were hit by a decent German Ifo report while in Japan bonds were given a leg up by good auction results and a retracement in equity gains from Mon. Treasuries will get a peak at price pressures at the producer level this morning while consumer confidence is expected to be weak. Technically the price trend is down and today’s big challenge will be not adding to that momentum. The data will need to cooperate which means soft inflation and really bad confidence. Such a data outcome combined with equity weakness could help put a floor under prices just above last week’s lows which would bolster the technical picture considerably. Should last week’s price lows (corresponding to about 3.96% on the 10-yr yield) be removed the retracement gains since late Dec look to be more significant. The euro has been bid on an improved confidence report hitting its best levels on the month against the buck, at about 1.4890, while the yen slid in early trade, but is holding better against most majors as regional stocks slipped. Gold is offered with spot 934.20 (-5.41) under pressure over approved IMF sales. Crude is also offered at 99.03 (-0.20). Data up is PPI (8:30) and consumer confidence (10) along with Fed’s Kohn (12:15). The results of today’s $30B 28-day TAF auction also hit (10). The euro is at 1.4873 and the yen is at 107.8500 while the 10-yr is +01/32 yielding 3.893%.
08:27 TGT Q4 comparable store sales up 0.2%

08:26 DISH DISH Network misses by $0.06, beats on revs (30.66 )

Reports Q4 (Dec) earnings of $0.39 per share, $0.06 worse than the First Call consensus of $0.45; revenues rose 12.1% year/year to $2.89 bln vs the $2.86 bln consensus. Co added approx 85k net new subscribers in Q4, giving the co approx 13.78 mln subscribers.
08:26 TGT prelim $1.23 vs $1.22 First Call consensus; revs $19.87 bln vs $20.00 bln First Call consensus

08:24 ISPH Inspire Pharm earnings color (3.83 ) -Update-

Earlier we reported that ISPH had missed by $0.12 this was incorrect. We have been informed by the company that Q4 results included a $0.16 charge that should be excluded when comparing to the First Call consensus. This means that the company reported a comparable loss per share of $0.35 vs the First Call consensus of ($0.39); revenues rose 63.5% year/year to $13.9 mln vs the $14.3 mln consensus. Co issues in-line guidance for FY08, sees FY08 revs of $62-76 mln vs. $66.65 mln consensus.. We have deleted the original comment.
08:24 SNDK SanDisk: Needham cautious due to NAND oversupply and weaker U.S. consumer spending (26.31 )

Needham says that while SNDK was more upbeat in this year’s Analyst Day than last year, firm is cautious due to NAND oversupply and weaker U.S. consumer spending. Further, they believe price cuts in February reflect increased competition and think supply will increase in the seasonally slower 1H08. With mobile card being the only growth area in 2008, they believe competitors will get even more aggressive, which could limit SNDK’s ability to gain share and achieve its full year revenue target. Therefore, firm is maintaining their Hold rating on SNDK.
08:23 R Ryder System downgraded to Hold from Buy at Stifel- based on valuation (61.09 )

08:23 LM Legg Mason: Citi Global Wealth Mgmt to acquire Legg Mason’s separately managed account trading and technology platforms (70.00 )

Citi (C) and LM announce a definitive agreement in which Citi Global Wealth Management would acquire the overlay and implementation business of Legg Mason Private Portfolio Group, which includes its managed account trading and technology platform. Terms of the transaction were not disclosed.
08:22 LDK LDK Solar: Needham believes LDK grossly undervalued @ 7x 09 EPS est - Needham (32.46 ) -Update-

Needham believes LDK is attractive for the following reasons: 1) they est that revs will grow at a 80%-plus CAGR in 2007- 2010; 2) favorably positioned in the PV food chain at the higher end of margins with potential for increases by 2009 with its backward integration to manufacture raw polysilicon; 3) solid supply agreements for raw polysilicon and ingot growing equipment covers 80% of their 2008 rev ests, respectively; 4) an impressive customer base that is growing and becoming less concentrated and more diverse geographically with total output for 2008 100% sold out due to very strong demand
08:21 Asset Management/Investment Services group initiated with a Positive long term bias- Stifel

Stifel initiates the Asset Management/Investment Services group with a positive long-term bias. In concert with their launch, the firm also initiates Invesco (IVZ) tgt $30, SEI Investment (SEIC) tgt $31, T. Rowe Price (TROW) tgt $57, and Waddell & Reed (WDR) tgt $37 with Buys, and Cohen & Steers (CNS), Franklin Resources (BEN), Janus (JNS), and Legg Mason (LM) with Holds. They believe their long-term positive view on the industry is supported by an overall favorable macro outlook based upon global demographic trends. Aging populations around the world are in their prime savings periods and need to accelerate their savings in order to meet growing liabilities for health care and retirements. The firm says sponsors (governments and corporations), facing these higher liabilities, are encouraging increased savings through changes in legislation and placing greater responsibility on the individual. They note a second key favorable issue is globalization of the asset managment industry whereby previously closed markets are now open to foreign entrants, investors are seeking global investments to increase returns and reduce risk, and financial markets are rapidly developing in size and breadth.
08:19 LTD Limited: Q4 preview - Stifel (18.05 )

Stifel expects Q4 EPS to decrease 15% to $0.92 (in line with consensus). They believe the increased use of promotions and discounts to combat weak traffic at BBW and VS will likely result in merchandise margins below expectation and LY’s levels. Additionally the ramp up of the new VS Direct DC took longer than mgmt anticipated and required VS to reduce its catalog circulation in 4Q in an attempt to meet demand and not disappoint customers, negatively impacting direct sales (sales decreased 12% in the quarter) and possibly store traffic as well. Firm is trimming their 1Q, 2Q, 4Q, 2008 and 2009 EPS ests to $0.12 (from $0.18), to $0.21 (from $0.23), to $1.12 (from $1.16), to $1.48 (from $1.60) and to $1.75 (from $1.90), respectively.
08:18 GVHR Gevity beats by $0.19, beats on revs (6.59 )

Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.19 better than the First Call consensus of $0.08; revenues fell 6.1% year/year to $147.0 mln vs the $145.3 mln consensus. Also, Gevity has completed a comprehensive strategic review of its non co-employed offering, Gevity Edge Select, with a decision to exit this market effective immediately in order to pursue profitable growth in its core PEO business.
08:18 BBG Bill Barrett misses by $0.12, beats on revs; reiterates FY08 production guidance (49.99 )

Reports Q4 (Dec) earnings of $0.06 per share, $0.12 worse than the First Call consensus of $0.18. “As announced on January 17, 2008, guidance for the full year 2008 consists of: Oil and natural gas production of 70 to 77 Bcfe; Lease operating costs per Mcfe of $0.64 to $0.70; Gathering and transportation costs per Mcfe of $0.54 to $0.59; General and administrative expenses before noncash stock-based compensation between $36 and $38 million.”
08:17 Court considers protecting drug makers from lawsuits - NY Times

NY Times reports less than a week after issuing a sweeping ruling that bars most lawsuits against medical device makers, the Supreme Court heard arguments Monday in the first of two cases that could determine whether drug makers receive similar protection. Justice Stephen Breyer said the fundamental question in the cases was who should make the decisions that will determine whether a drug is “on balance, going to save people or, on balance, going to hurt people?” “An expert agency on the one hand or 12 people pulled randomly for a jury role who see before them only the people whom the drug hurt and don’t see those who need the drug to cure them?” Justice Breyer asked.
08:17 KSS Kohl’s: Q4 preview - Stifel (45.83 )

Stifel expects KSS’s Q4 EPS will decrease 12% to $1.30 (in-line with consensus and at the low end of mgmt’s guidance). The 53rd week last year benefited 4Q06 EPS by an estimated $0.06. Excluding last year’s benefit, they expect EPS would decrease 8% y/y. They est gross margin will decrease 90 bps as the co increased promotions during the quarter following below plan sales to ensure it ended the quarter with a clean inventory position. These increased markdowns likely more than offset improved inventory mgmt and increased penetration of private label and exclusive brands. They believe operating expenses will deleverage 70 bps on a (4)% comp. Firm trims 1Q, 2Q, 3Q, 4Q, 2008 and 2009 EPS ests to $0.57 (from $0.60), to $0.82 (from $0.84), to $0.62 (from $0.68), to $1.55 (from $1.58), to $3.55 (from $3.6 and to $4.20 (from $4.50), respectively.
08:16 RRI Reliant Energy reports Q4 (Dec) results, beats on revs (22.74 )

Reports Q4 (Dec) earnings from continuing operations of $0.62 per share, may include gains, charges, may not be comparable to the First Call consensus of $0.04; revenues rose 13.2% year/year to $2.65 bln vs the $1.89 bln consensus. Co sees Y08, Y09, and Y10 adjusted EBITDA of $1.267 bln, $1.432 bln, and $1.531 bln respectively.
08:16 PNK Pinnacle misses by $0.16, misses on revs (16.50 )

Reports Q4 (Dec) loss of $0.05 per share, excluding non-recurring items, $0.16 worse than the First Call consensus of $0.11; revenues rose 3.5% year/year to $220 mln vs the $229.4 mln consensus.
08:14 THC Tenet Healthcare beats by $0.05, reports revs in-line; guides FY08 EPS in-line, revs above consensus (4.28 )

Reports Q4 (Dec) earnings of $0.02 per share, excluding non-recurring items and including stock options expense, $0.05 better than the First Call consensus of ($0.03); revenues rose 6.4% year/year to $2.25 bln vs the $2.24 bln consensus. Co issues mixed guidance for FY08, sees EPS of $(0.10)-0.05 vs. ($0.05) consensus; sees FY08 revs of $9.3-9.4 bln vs. $9.29 bln consensus.
08:13 GLDD Great Lakes Dredge & Dock reports EPS in-line, beats on revs (6.77 )

Reports Q4 (Dec) earnings of $0.06 per share, in-line with the First Call consensus of $0.06; revenues rose 28.8% year/year to $156.9 mln vs the $130.6 mln consensus.
08:12 ECONX PPI Preview - Data due out in about 18 min at 8:30AM ET

Usually when producer prices follow the more closely watched consumer prices, the market turns a blind eye toward it. However, the new quarter century high expected in January may spark more concern that the economic stall is coming with increased inflation pressures — what some call “stagflation.” Producer prices are showing the same effect seen in consumer prices. The recent surge in energy prices should leave annual PPI growth more than three times the size of the core (ex-food and energy) prices and above the 26-year high of 7.2% seen in November. The causes of the non-core pressures are strong global energy demands as food prices are also boosted given the bio-fuel alternatives of grains and their effect on feedstock and prices of livestock and agricultural prices. The bottom line is that global demand will continue to be a force and is simply outside the Fed’s ability to control. Core prices better reflect the broad domestic economy and its effect on prices. Core PPI is expected to hold at the 2% annual growth seen for the last two months — below the core rate of consumer prices. Moreover, little of those core PPI pressures are making it to consumer prices as CPI core commodity prices are about flat from a year ago. Service prices provide the pressure in core CPI while PPI includes only wholesale and commodity prices without services. Briefing.com stands with the consensus expectation for a 0.4% January gain in PPI and a 0.2% gain for core PPI. Tuesday’s release will include the revisions which come with the updated seasonal adjustments that won’t change the annual growth. Producer, or wholesale, prices don’t carry the weight at the Fed that consumer prices do. The lift to a new quarter century high is obviously concerning given the continued rise in commodity prices tied to strong global output. Fed policy is forced to focus on core prices which better reflect the slowing domestic economy and reduced pricing power that a slow economy brings. Given that commodity prices often provide the forward view on pricing pressures, the PPI is important. However, given the weak economic growth expected over the coming quarters and very little carry over from core producer prices to core consumer prices, the PPI report shouldn’t swing the policy direction currently led by the weak economic growth. The equity mkt, nevertheless, isn’t expected to respond positively to the strong PPI growth.
08:11 M Macy’s beats by $0.05, reports revs in-line; guides FY09 EPS in-line (24.76 )

Reports Q4 (Jan) earnings of $1.65 per share, $0.05 better than the First Call consensus of $1.60; revenues fell 6.2% year/year to $8.59 bln vs the $8.62 bln consensus. Co issues in-line guidance for FY09, sees EPS of $1.85-2.15 vs. $2.03 consensus. Q4 included “May Company merger integration costs of $69 million ($43 million after tax or 10 cents per diluted share), fourth quarter diluted earnings per share from continuing operations were $1.83. Effective with 2008, the company has decided to no longer report sales on a monthly basis in addition to its previously announced decision not to provide quarterly sales or earnings guidance. The company will continue to report sales and earnings quarterly and to provide guidance on an annual basis.”
08:10 TWP Trex reports Q4 (Dec) results, misses on revs (7.24 )

Reports Q4 (Dec) loss of $2.75 per share, includes charges, may not be comparable to the First Call consensus of ($0.69); revenues fell 5.6% year/year to $30.3 mln vs the $34.8 mln consensus.
08:09 LIOX Lionbridge Tech beats by $0.06, beats on revs; guides Q1 revs in-line; authorizes $12 mln repurchase (3.01 )

Reports Q4 (Dec) earnings of $0.07 per share, $0.06 better than the First Call consensus of $0.01; revenues rose 15.7% year/year to $117.2 mln vs the $108.3 mln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $113-116 mln vs. $114.15 mln consensus. Co reaffirms Y08 revs up 6-10% yr/yr. Co announces Board of Directors has authorized an incremental repurchase program for Y08 of up to $12 mln.
08:09 GOOG Google: Additional color on comScore data (486.44 ) -Update-

Citigroup notes that comScore reported flat Y/Y growth In Google Paid Clicks for January. They say that if the comScore data is accurate and holds for Q1, it could imply risk to Q1 estimates. Firm says the disconnect is that this type of step-function deceleration should show up as a material fall-off in leads to Search Engine Marketers and channel checks haven’t picked this up… Jefferies notes third-party data suggests continued deceleration in paid click growth on GOOG properties, implying that Street estimates may need to come down if the January trend persists. If the January trend continues throughout the quarter, they believe that their below consensus estimates may prove aggressive. They also believe that the consensus of $3.69 bln in net revenue for 1Q08 could be adjusted downward as the quarter progresses The firm is maintaining a Hold rating on concerns over growth trends, higher TAC rates and lack of leverage in the model. (Also see 7:25 & 7:18 comments on GOOG)
08:09 LDK LDK Solar: Inventory questions resurface following 4Q07 results - Oppenheimer (32.46 )

Oppenheimer says LDK reported 4Q07 results that slightly exceeded mgmt’s previous guidance, but concerns over inventory and cash flow, coupled with mgmt’s evasiveness to questions, are likely to cause a negative share price reaction. Firm believes investors will be disappointed by the unchanged 2008 guidance and mgmt’s evasiveness to questions related to changes in inventory, capex, and financing sources for the aggressive expansion plans. Once again, firm has questions regarding LDK’s inventory mgmt following a sequential increase of ~$125 mln Q/Q to $350 mln. Mgmt attributed the spike to an increase in polysilicon raw material inventory. Firm also notes that liquidity is becoming an increasing concern.
08:09 DISH prelim $0.39 vs $0.45 First Call consensus; revs $2.89 bln vs $2.86 bln First Call consensus

08:09 WIRES On The Wires

IPG Photonics (IPGP) announces that it has purchased more than 100 key U.S. patents, and their more than 340 foreign counterparts, by acquiring a photonics patent portfolio from British Telecom… Sysmex Corp, its U.S. subsidiary Sysmex America, and IDEXX Laboratories (IDXX) announces their global agreement to introduce Sysmex XT-2000i V Automated Hematology Analyzers into IDEXX Reference Laboratories worldwide.
08:07 THC sees FY08 $(0.10)-0.05 vs ($0.05) First Call consensus; sees revs $9.3-9.4 mln vs $9.29 bln First Call consensus

08:06 OSIR Osiris Therapeutics says Prochymal demonstrates lasting benefit in heart attack patients; co receives FDA clearance to start phase II trial (11.81 )

Co announces that interim results at the one year time point for its Phase I trial evaluating Prochymal for the treatment of heart attack patients continued to demonstrate a strong safety profile and statistically significant improvement in heart function. Based upon the positive results from this 53-patient, double-blind, placebo-controlled trial, the co has received approval from the FDA to initiate a Phase II trial.
08:06 PKD Parker Drilling reports Q4 (Dec) results, beats on revs (7.71 )

Reports Q4 (Dec) earnings of $0.31 per share, includes $0.07 loss related to the financial results from operations of the Saudi Arabia JV and $0.08 from a reserve related to the JV in Saudi Arabia and a tax benefit, may not be comparable to the First Call consensus of $0.22; revenues rose 23.6% year/year to $180.8 mln vs the $177 mln consensus. “Our U.S. barge rig segment completed the fourth quarter of 2007 with strong results. In the near term, we expect our U.S. barge segment to remain active. Deep barge dayrates have leveled off and 90 percent of the deep barge fleet is committed through the first quarter. We expect our intermediate barge rig segment to experience some weakness in the first half of 2008.”
08:06 SNE Sony, Sharp team up on LCD panels - WSJ (47.98 )

WSJ reports the co and Sharp said they will form a joint venture to make liquid-crystal display panels for televisions at Sharp’s new plant as both sides seek to solidify their positions in an increasingly competitive mkt. Under the terms of the agreement, Sharp will spin off its LCD panel facilities at a new plant that it is building in western Japan, and share its ownership with Sony. Sharp will hold a controlling stake of 66% in the joint venture, with Sony taking the rest. The two sides didn’t disclose the amount of Sony’s proposed investment. But Sharp has said the total cost of the LCD panel factory would be about $3.5 billion, valuing Sony’s stake at about $1 billion. The plant, which will make panels for TVs that are 40-inches and larger, is expected to begin production by March 2010.
08:06 GVHR prelim $0.27, ex items vs $0.08 First Call consensus; revs $146.96 mln vs $145.31 mln First Call consensus

08:05 PNK prelim ($0.05), ex items vs $0.11 First Call consensus; revs $220.0 mln vs $229.37 mln First Call consensus

08:05 AAPL Apple: Analysis of first month of Mar Qtr iPod NPD data suggests 9.5 mln-10.3 mln units- Piper Jaffray (119.46 ) -Update-

Piper Jaffray says while it is way too early to make a definitive call on March qtr iPod units, they have analyzed the first month of NPD data (Jan.) for the qtr and found that it suggests iPod units of 9.5-10.3 mln. Firm notes street consensus for March qtr iPods is 10.8 mln, representing a 2% y/y increase; the midpoint of the 9.5-10.3 mln range suggests a 6% y/y decline. They see this data point as a slight positive, given recent Street chatter of a very weak iPod number for the qtr, and they note that the monthly contribution they have factored in for Feb and March may be prove to conservative given the iPod shuffle price cut on 2/19, leading to a more back-end-loaded qtr for iPod units.
08:04 THC prelim ($0.18), includes items, may not be comparable vs ($0.03) First Call consensus; revs $2.25 bln vs $2.24 bln First Call consensus

08:04 Medicare spending to surge - WSJ

WSJ reports govt spending on health care could nearly double by 2017 to more than $2 trillion, according to a new federal study, reflecting a surge that promises to complicate the campaign debate about health care. Driven by the aging of the baby-boom generation and rising costs of new drugs and medical technology, Medicare, the big federal health program for the elderly, will take up 20.7% of national health spending by 2017, according to the report. Overall, the report projects health-care spending in the U.S. will hit $4.3 trillion by 2017, nearly double the 2007 amount. That would equate to nearly 20% of gross domestic product. In 2007, health-care spending accounted for 16.3% of GDP, according to the study. But more of that cost is expected to shift to government agencies — even as the federal government struggles to shrink huge deficits.
08:03 RRI prelim $0.64 vs $0.04 First Call consensus; revs $2.65 bln vs $1.89 bln First Call consensus

08:03 PKD prelim $0.31 vs $0.22 First Call consensus; revs $180.8 mln vs $176.96 mln First Call consensus

08:02 M sees FY09 $1.85-2.15 vs $2.03 First Call consensus

08:02 THRX Theravance and GlaxoSmithKline announce expansion of the Horizon programme with start of large Phase 2 study of LABA in COPD patients (18.00 +0.9

Co and GlaxoSmithKline (GSK) announce the expansion of the Horizon programme into development of a next-generation combination treatment for patients with chronic obstructive pulmonary disorder. A large Phase 2b COPD dose-optimisation study with the lead long-acting beta agonist (LABA) GW642444 has commenced, with screening of the first patient undertaken.
08:02 S&P futures vs fair value: -2.1. Nasdaq futures vs fair value: +0.8.

It is shaping up to be a slightly lower start to the trading day. Futures saw a dip after Dow component Home Depot (HD) reported earnings that failed to live up to expectations, and provided a disappointing outlook. MBIA (MBI), which was a key component to yesterday’s late-day rally, is again garnering the market’s attention after it announced it is eliminating its dividend, and will split the company in a five-year period. Futures may go on the move at 8:30 ET with the release of January PPI. Economists expect a 0.4% rise in PPI, and for core PPI to rise 0.2%.
08:02 LIOX sees Q1 revs $113-116 mln vs $114.15 mln First Call consensus

08:02 LIOX prelim $0.07 vs $0.01 First Call consensus; revs $117.2 mln vs $108.26 mln First Call consensus

08:02 BBG prelim $0.06, may not compare to the $0.18 First Call consensus; revs $108.98 mln vs $104.11 mln First Call consensus

08:02 M prelim $1.65 vs $1.60 First Call consensus; revs $8.59 bln vs $8.62 bln First Call consensus

08:01 CALP Caliper Life Sciences and AntiCancer announce cross-licensing of intellectual property and settlement of litigation (4.56 ) -Update-

Caliper Life Sciences (CALP) and AntiCancer announces that they have entered into an agreement to establish a cross-licensing relationship and end all outstanding patent litigation between the two companies. Under the cross-license arrangement, CALP and AntiCancer will share in any revenues generated by the licensing of their proprietary imaging technologies in the field of fluorescent protein imaging. The companies also expect to enter into an OEM distribution agreement under which CALP will market and sell certain mouse and cell lines developed by AntiCancer for use in fluorescent protein-based optical imaging experiments.
08:01 GLDD prelim $0.06 vs $0.06 First Call consensus; revs $156.9 mln vs $130.60 mln First Call consensus

08:00 TWP prelim ($2.75), includes $22 mln charges, ($0.69) First Call consensus; revs $30.3 mln vs $34.84 mln First Call consensus

08:00 QI Qimonda: Still out of the mainstream, and now execution becomes a risk - Caris (4.73 )

Caris maintains their Below Average and $4.50 tgt on QI following its announcement of a new technology roadmap. It’s been clear for a while that QI’s trench capacitor DRAM technology has been running low on gas, but they’re surprised by the decision to switch to another proprietary, non-mainstream technology, which appears to incorporate elements of both trench and mainstream stacked capacitor. Firm may see accelerated cost reduction, but execution is a big risk. Further financing will still likely be necessary for QI to remain afloat as industry oversupply continues to weigh on profitability. Firm recommends that investors avoid the stock.
07:58 PEI Pennsylvania R.E.I.T. reports Q4 (Dec) results; guides FY08 FFO below consensus (25.37 )

Reports Q4 (Dec) funds from operations of $1.12 per share, includes gains & charges, may not be comparable to the First Call consensus of $1.05. Co issues downside guidance for FY08, sees FFO of $3.60-3.70 vs. $3.71 consensus.
07:57 COMDX Wheat prices in biggest one-day rise - FT

FT reports prices of top-quality wheat jumped 25% to a record high on Monday in their largest one-day increase as Kazakhstan, one of the largest grain exporters, said it would impose export tariffs to curb sales. The move, which follows similar export restrictions in Russia and Argentina, is likely to put further pressure on already tight global wheat supplies, analysts said. Akhmetzhan Yesimov, Kazakhstan’s minister of agriculture, said the govt wanted to limit exports as it battled against rising domestic inflation of nearly 20%. Mr Yesimov said: “Whatever happens, we will soon limit exports.” Kazakh grain, prized for its high protein and gluten content, is similar to some of the scarce top-quality North American crops that jumped in price on Monday. Spring wheat at the Minneapolis Grain Exchange surged an unprecedented $4.75 to a record high of $24 a bushel as consumers scrambled to secure supplies and speculators poured fresh money into the agriculture mkt.
07:57 GNA Gerdau AmeriSteel downgraded to Neutral from Buy at UBS (15.57 )

07:56 STLD Steel Dynamics downgraded to Neutral from Buy at UBS (61.91 )

07:55 LBTYA Liberty Global: Solid and consistent growth expected in Q4 - Morgan Joseph (37.69 )

Morgan Joseph continues to believe LBTYA is well-positioned long-term given its: 1) diversified world-wide asset base; 2) the opportunity to leverage off under-penetrated global markets in 2008; and 3) less aggressive satellite and telco competition vs. US cable operators. They remain impressed with the 14%-16% expected EBITDA growth, though they note the positive impact that foreign currency rates have had on expectations. Overall, while they are not expecting groundbreaking 4Q results, firm believes that the co will report another quarter of solid and consistent growth. Further, they note the potential for LBTYA to release initial guidance for 2008, which could cause upward movement in the stock.
07:55 SCANX Early pre-market gappers

Gapping up: CGPI +3.5%, SNDA +2.2%, HBC +2.1%, MICC +1.6%, MA +1.6%, EWZ +1.5%, DB +1.5%, DAI +1.3%, KNDL +1.1%… Gapping down: FWLT -6.2%, CRDN -3.5%, GS -2.3%, GOOG -2.0%, USU -1.2%, BIDU -1.0%, LDK -1.0%.
07:54 MEDE Medecision reports Q4 (Dec) results, revs in-line (2.14 )

Reports Q4 (Dec) earnings of $0.12 per share, may include charges, may not be comparable to the First Call consensus of $0.22; revenues rose 50.5% year/year to $16.13 mln vs the $16.2 mln consensus.
07:53 MEDE prelim $0.12 vs $0.22 First Call consensus; revs $16.1 mln vs $16.16 mln First Call consensus

07:53 CNTF China Techfaith Wireless: Results ahead of expectations; primed for earnings growth in 2008 - Susquehanna (5.23 ) -Update-

07:52 CSCO Cisco Systems added to Citigroup’s Recommended List in conjunction with their recent upgrade of the stock (23.80 )

07:51 USU USEC Inc: Q4 a penny above consensus; ACP costs rise to $3.5 bln - Jefferies (9.25 )

Jefferies believes USU provides a unique pure-play on the nuclear enrichment industry. Rising uranium and SWU prices and elevated energy prices provide an attractive backdrop for operational improvements at USU, particularly given conservative Street expectations on competitor behavior and project execution. To reflect a lull in orders and more ACP expenses, firm cuts 2008E EPS $0.53 to $0.20. To reflect rising ACP costs ($3.5bn vs. their $3 bln forecast), firm cuts their tgt to $11 from $12.
07:49 Hearing tier 1 firm raising their tgt on select Financial Guarantors

Hearing AMBAC (ABK) tgt raised to $9 from $7; MBIA (MBI) tgt raised to $14 from $11 at tier 1 firm.
07:48 GLF Gulfmark Offshore starting to get recognition for its growth - Jefferies (51.50 )

Jefferies says despite surging 13% yesterday, they still believe GLF shares have further upside driven by the co’s impressive earnings growth potential. With vessels on order that could eventually add $3.00 in EPS (compared to their ‘08 est of $5.46), they believe that GLF represents a good small cap growth story.
07:47 MGM MGM Mirage and Infinity World announce final results of their joint tender offer (66.03 )

Co and Infinity World, an indirect wholly owned subsidiary of Dubai World, announce the final results of their joint tender offer, which expired at 12:00 midnight, New York City time, on February 14, 2008. Based on the final tabulation by Mellon Investor Services, the depositary for the joint tender offer, 99,125,707 shares of common stock of MGM were properly tendered and not withdrawn in the joint tender offer, resulting in a proration factor of approximately 15.1%. Mellon Investor Services will promptly issue payment for the shares validly tendered and accepted for payment and will return all other shares tendered.
07:47 EP El Paso misses by $0.08, reports revs in-line (17.06 )

Reports Q4 (Dec) earnings of $0.21 per share, $0.08 worse than the First Call consensus of $0.29; revenues rose 38.2% year/year to $1.26 bln vs the $1.26 bln consensus. Hedge Positions for 2008- As of February 22, 2008, El Paso had hedge positions for more than two-thirds of its estimated 2008 equivalent production. The hedges have an average floor price of $7.94 per million British thermal unit (MMBtu) and an average ceiling price of $10.21 per MMBtu on 188 trillion British thermal unit. In addition, El Paso hedged 3.7 million barrels of crude oil with an average floor price of $80.94 per barrel and an average ceiling price of $81.44 per barrel. Further information on the company’s hedging activities will be available in El Paso’s Form 10-K.
07:46 CNTF China Techfaith Wireless: robust quarter and outlook; raising ests - Jefferies (5.23 )

Jefferies says CNTF reported 4Q07 results that handily exceeded their sales and profit ests, while delivering a March quarter sales outlook that is above their projections and meaningfully higher than the Street. Firm expects a strong rally in the shares today.
07:46 NUAN Nuance Communications: Hearing initiated with a neutral at tier 1 firm (17.70 )

07:46 GILT Gilat Satellite signs 2 deals in Africa - Globes Online (10.81 )

Globes Online reports sources inform ”Globes” that the co has won two $10 mln contracts in Africa. The contracts involve both the supply of equipment and services. The co did not disclose the names of the customers.
07:44 HNZ HJ Heinz beats by $0.01, beats on revs; reaffirms FY08 EPS guidance (45.98 )

Reports Q3 (Jan) earnings of $0.68 per share, $0.01 better than the First Call consensus of $0.67; revenues rose 13.7% year/year to $2.61 bln vs the $2.58 bln consensus. Co reaffirms guidance for FY08, sees EPS of $2.60-2.62 vs. $2.63 consensus.
07:44 DAR Darling International initiated with an Overweight at boutique firm (13.71 )

07:44 BX Blackstone COO says is managing business on basis that there is a recession, says economy is definitely slowing - Reuters (15.95 )

07:43 OZM Och-Ziff Capital beats by $0.08, misses on revs (21.15 )

Reports Q4 (Dec) earnings of $1.27 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $1.19; revenues rose 123.7% year/year to $770.2 mln vs the $828 mln consensus.
07:43 AAPL Apple: Australian law could hinder iPhone release - AppleInsider (119.74 )

AppleInsider reports an attempt by Apple to repeat its procedures for past iPhone launches in Australia could face legal roadblocks meant to encourage competition, according to a report by law professors at Queenland University. While the American company has successfully landed exclusive contracts that make just one carrier the official iPhone host in France, Germany, the US, and the UK, a clause in Australia’s Trade Practices Act against forced line bundles may prevent Apple from signing an exclusive contract in the southern country. Whether this is necessary may depend on a review from the Australian Competition and Consumer Commission before any deal can be approved. Queenland researcher Dale Clapperton observes that a non-exclusive deal is unlikely but still desirable. A single-provider iPhone agreement is likened to limiting a car’s choice of fuel to one oil company. “If you fill your car up with fuel from BP the ignition system will detect that and shut down the car,” he says.
07:42 EP El Paso misses by $0.08, misses on revs (11.57 )

Reports Q4 (Dec) earnings of $0.21 per share, $0.08 worse than the First Call consensus of $0.29; revenues fell 23.6% year/year to $1.02 bln vs the $1.26 bln consensus. Co states, “…We enter 2008 with a strong balance sheet, visible multi-year growth in hand, and opportunities to add to our growth trajectory…”
07:42 HNZ reaffirms FY08 $2.60-2.62 vs $2.63 First Call consensus

07:42 MDH MHI Hospitality misses by $0.14, misses on revs; guides FY08 FFO below consensus (7.80 )

Reports Q4 (Dec) funds from operations of $0.16 per share, $0.14 worse than the First Call consensus of $0.30; revenues fell 1.2% year/year to $16.8 mln vs the $17.6 mln consensus. Co issues downside guidance for FY08, sees FFO of $1.02-1.12 vs. $1.14 consensus; co sees RevPAR growth of 3-5%.
07:42 DPZ Domino’s Pizza misses by $0.05, misses on revs (13.01 )

Reports Q4 (Dec) earnings of $0.21 per share, excluding non-recurring items, $0.05 worse than the First Call consensus of $0.26; revenues rose 2.5% year/year to $445.9 mln vs the $451.1 mln consensus.
07:42 SAH Sonic Automotive beats by $0.03, beats on revs (19.33 )

Reports Q4 (Dec) earnings of $0.68 per share, $0.03 better than the First Call consensus of $0.65; revenues rose 7.7% year/year to $2.11 bln vs the $2.05 bln consensus. Co issues guidance for FY08, sees EPS of $2.35-2.50, may not be comparable to $2.67 consensus. “We expect to see continued softness in new vehicle sales during 2008 which will be largely offset by growth in our used vehicle and parts and service revenue. In addition, as part of our ongoing portfolio enrichment and capital allocation strategies, we are considering changes to our group of stores held for sale, including the potential sale of a number of profitable, well-managed stores that no longer fit our business model or which require capital expenditures that do not make sense for us. This change, when enacted, will reduce earnings from continuing operations in 2008 by approximately $0.09 as some profitable stores may now be included in our discontinued operations group. This potential impact has been included in our 2008 earnings per share from continuing operations…”
07:42 HNZ prelim $0.68 vs $0.67 First Call consensus; revs $2.61 bln vs $2.58 bln First Call consensus

07:41 SNDA Shanda Interactive: Color on quarter (30.83 )

Susquehanna says Q4 results strong; casual games growth a surprise… Brean Murray says SNDA reported net rev of $97.8 mln (up 12% QoQ), exceeding the FirstCall consensus of $93.5 mln. MMORPG rev accounted for the upside vs. their forecast. Casual games rev remained healthy and grew 7% sequentially to $11.7 mln. Strong rev translated into earnings upside as EPS of $0.54 was noticeably above the consensus est of $0.45. EPS exceeded expectations even if they back out the $0.06 benefit from a lower tax rate and higher interest income. Firm notes SNDA guided to a 6-9% sequential rev increase in constant currency. Since the U.S. dollar has continued to depreciate vs. the RMB YTD, they believe it translates into rev of $105-108 mln, which is noticeably above the consensus est of $96 mln. Importantly, the co’s key 2008 game introduction, Changchun, is not expected to be in open beta until 2Q08 and consequently would likely be commercialized only around midyear. Thus, firm believes SNDA expects continued strong performance from its current titles.
07:38 POZN POZEN beats by $0.04, misses on revs (12.52 )

Reports Q4 (Dec) loss of $0.14 per share, $0.04 better than the First Call consensus of ($0.18); revenues fell 10.1% year/year to $6.2 mln vs the $6.4 mln consensus. “We are not in a position at this time to provide guidance for the 2008 year. We believe we will be in a better position to provide guidance for the year when we report the financial results for the second quarter of 2008. At that time, we will have a more accurate estimate of the costs and timing of the marketing support studies, which we will conduct at the request of AstraZeneca, and have better insight into the status of FDA marketing approval for Treximet and subsequent launch, if approved.”
07:38 SPSS SPSS Inc resumed with a Neutral at Merrill (38.62 )

07:38 SSYS Stratasys misses by $0.01, reports revs in-line; guides FY08 EPS below consensus, revs in-line (21.21 )

Reports Q4 (Dec) earnings of $0.21 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.22; revenues rose 1.7% year/year to $30.2 mln vs the $30.1 mln consensus. Operating profit was impacted by higher operating expenses, as well as sales and product mix shifts. The higher operating costs were mostly related to a short-term increase in commission expenses, as well as the acceleration of new product and market development programs, which will benefit 2008 and beyond. Co issues mixed guidance for FY08, sees EPS of $0.81-0.89 vs. $0.93 consensus; sees FY08 revs of $130-136 mln vs. $134.73 mln consensus.
07:37 TTI TETRA Tech reports EPS in-line, misses on revs; reaffirms FY08 EPS guidance (18.98 )

Reports Q4 (Dec) earnings of $0.23 per share, excluding non-recurring items, in-line with the First Call consensus of $0.23; revenues rose 20.1% year/year to $247 mln vs the $256.2 mln consensus. Co reaffirms guidance for FY08, sees EPS of $1.30-1.55 vs. $1.48 consensus.
07:37 DLM Del Monte downgraded to Market Perform from Outperform at Wachovia (7.98 )

07:36 CALP Caliper Life Sciences misses by $0.02, beats on revs; guides Q1 revs below consensus; guides FY08 revs in line (4.56 )

Reports Q4 (Dec) loss of $0.04 per share, $0.02 worse than the First Call consensus of ($0.02); revenues rose 16.1% year/year to $40.3 mln vs the $38.7 mln consensus. Co issues downside guidance for Q1, sees Q1 revs of $26.5-29.5 mln vs. $30.17 mln consensus. Co issues in line guidance for FY08, sees FY08 revs of $142-148 mln vs. $146.22 mln consensus.
07:36 KNDL Kendle upgraded to Buy at Jefferies- tgt $47 (39.42 )

Jefferies upgrades KNDL to Buy from Hold with a $47 tgt saying C.R.O industry trends are strong, and Kendle has been gaining share. They expect strong wins to continue in 4Q. The firm also says at a ~30% discount on ‘08 and ‘09 EPS, sloppy earnings-management in recent quarters and slowing backlog conversion are priced in.
07:36 DXYN Dixie Group misses by $0.02, reports revs in-line (8.48 )

Reports Q4 (Dec) earnings of $0.14 per share, $0.02 worse than the First Call consensus of $0.16; revenues fell 0.9% year/year to $79.5 mln vs the $79 mln consensus. “The outlook for business remains difficult to predict. Sales continue to be depressed thus far in fiscal 2008 and residential carpet revenues continue to decline. The severe weakness in the housing industry and tough credit conditions will likely continue to have an impact on demand for residential carpet products throughout this year. Nevertheless, we believe we can continue to grow our share of the residential carpet market.”
07:35 MDH sees FY08 funds from operations of $1.02-1.12 vs $1.14 First Call consensus

07:34 WIRES On The Wires

Pharmacopeia (PCOP) announces the completion of recruitment in the company’s multi-center Phase 2a clinical study of PS433540, the company’s lead internal product candidate… AAR (AIR) announces that it has signed an agreement to acquire Avborne Heavy Maintenance, and a related entity from AHM Holding.
07:34 MDH prelim funds from operations of $0.16 vs $0.30 First Call consensus; revs $16.8 mln vs $17.56 mln First Call consensus

07:34 EMC EMC Corp upgraded to Outperform from Neutral at Cowen (15.61 )

07:33 ARMHY ARM Holdings initiated with an Equal Weight at Morgan Stanley (5.96 )

07:33 EP prelim $0.21 vs $0.29 First Call consensus; revs $1.02 bln vs $1.26 bln First Call consensus

07:33 DPZ prelim $0.26 vs $0.26 First Call consensus; revs $445.94 mln vs $451.10 mln First Call consensus

07:33 CALP sees FY08 revs $132-138 mln vs $146.22 mln First Call consensus

07:33 DGII Digi Intl initiated with a Hold at Roth Capital (10.98 )

Roth Capital initiates DGII with a Hold saying the advent of machine-to-machine communications coupled with advances in device networking technology ushered in a new Information Era in which personal productivity has increased dramatically. The firm believes the stakes in this new era are enormous as billions of devices can benefit from M2M communications. The firm believes DGII is in a sweet spot of this new Information Era movement. Through internal development and acquisitions, DGII has established itself as a leader in the M2M device networking industry. The firm says they like every aspect of DGII except for one: 2008 guidance. Given the uncertain economy, they believe it could be a tad aggressive.
07:32 CALP sees Q1 revs $26.5-29.5 mln vs $30.17 mln First Call consensus

07:32 SAH sees FY08 $2.35-2.50 vs $2.67 First Call consensus

07:32 CALP prelim ($0.04) vs ($0.02) First Call consensus; revs $40.3 mln vs $38.65 mln First Call consensus

07:31 SAH prelim $0.68 vs $0.65 First Call consensus; revs $2.11 bln vs $2.05 bln First Call consensus

07:31 TTI reaffirms FY08 $1.30-1.55 vs $1.48 First Call consensus

07:31 F Ford Motor is pushing buyouts to workers - NY Times (6.46 )

NY Times reports the co is applying the hard sell these days — it is trying to sign up thousands of workers to take buyouts, partly by convincing them that their brightest future lies outside the co that long offered middle-class wages for blue-collar jobs. So, Ford is pitching a buffet of buyout packages that are easily among the richest ever offered to factory workers, including one-time cash payments of $140,000 or college tuition plans for an entire family. The automaker is also putting on job fairs in its plants and mailing each of its 54,000 hourly workers a feature-length DVD, titled “Connecting With Your Future,” that extols the promise of new careers beyond the assembly line.
07:31 TTI prelim $0.23, ex items vs $0.23 First Call consensus; revs $246.97 mln vs $256.19 mln First Call consensus

07:31 IFLO I-Flow announces plan to repurchase up to 1 mln shares of common stock (14.14 )

07:31 ISPH sees FY08 revs $62-76 mln vs $66.65 mln First Call consensus

07:31 MTCT MTC Tech wins $5.1 mln potential value contract for C-130 Aircraft cockpit noise reduction (23.65 )

07:30 ISPH prelim ($0.51) vs ($0.39) First Call consensus; revs $13.9 mln vs $14.31 mln First Call consensus

07:30 POZN prelim ($0.14) vs ($0.1 First Call consensus; revs $6.2 mln vs $6.38 mln First Call consensus

07:30 DXYN prelim $0.14 vs $0.16 First Call consensus; revs $79.51 mln vs $78.99 mln First Call consensus

07:30 Bond Insurers: Stepping back from the ledge; maintains Market Perform ratings on MBI and ABK - FBR

Friedman Billings is maintaining their Market Perform ratings on MBIA (MBI) and Ambac (ABK) shares and raising their tgt on MBI shares, to $16 from $13, following yesterday’s ratings actions by Standard and Poor’s. While not entirely out of the woods, S&P’s actions indicate that the rating agencies are not likely to be the causal effect of the cos’ downfall, as had been feared. Their tgts represent 70% of pro forma book value of $22.41 for MBI and $14.85 for ABK. Their higher pro forma book value est for ABK reflects the less dilutive nature of any pending capital raise, given the stock’s recent performance, although they concede that this valuation assumption will remain a moving target until capital plans are complete.
07:29 ATHN AthenaHealth upgraded to Buy from Neutral at Piper Jaffray (29.93 )

07:26 STD Banco Santander Central: Spain Crt Upholds decision to dismiss Santander Chairman case - DJ (18.02 )

DJ reports Spain’s Supreme Court said it was upholding a lower court’s decision to drop embezzlement and tax fraud charges against the co Chairman Emilio Botin. The case refers to a compensation scheme where executives of Santander unit Banco Espanol de Credito, or Banesto, were given shares equivalent to 1% of its share capital.
07:26 Friedman Billings says production checks show Q1 momentum unchanged; comments on BRCM, MRVL, LSI, SLAB

Friedman Billings says they have new production channel checks on BRCM, MRVL, LSI, and SLAB and an updated look at the industry. In total, firm has not seen any deterioration in 1Q or 2Q production orders from fabless chip firms over the past month, despite the negative economic headlines, suggesting chip industry fundamentals may be stabilizing. 1Q production is tracking seasonally down, as expected. Q2 seems to be trending down a few points sequentially, similar to their prior checks. A sequentially down Q2 is somewhat encouraging in that inventories should be leaner heading into 2H. PC-related chip firms continue to exhibit positive order revisions. Concerns do remain including 1) weakening macroeconomic trends, 2) the possibility of further EPS est cuts for 2Q, and 3) slow seasonal trends this spring. Chip shipments should improve by May or June with the second-half seasonal build. Some terrific value opportunities exist for meaningful share price appreciation over the coming year in names like BRCM, FCS, ONNN, MSCC, ATML, and others.
07:25 GOOG Google: Explaining recent weakness - Lehman (486.44 ) -Update-

Lehman believes GOOG was weak on Monday for two primary reasons: 1) concern around test of a new feature called Automatic Matching used to expand the # of keywords for advertisers; and 2) the late-day release of comScore paid search data which shows a slight Y/Y decline in Jan. in the # of domestic paid clicks on GOOG Sites. Firm says there were mixed Q1 checks, but they believe any softness is more attributable to consumers than advertisers. They expect further near-term weakness in shares, but believe softness more macrodriven and will create compelling long-term buying opportunity.
07:25 NTII Neurobiological Tech: Settlement reached with Merz over disputed Memantine roylaties - Merriman (2.70 ) -Update-

Merriman says that after the close NTII announced in an 8-k that it had reached a settlement with Merz over NTII’s disputed royalties on sales of memantine. Based on the announced terms, NTII will stop receiving royalties on ex-U.S. sales of memantine beginning in F4Q07, but will continue to receive royalties on U.S. sales of memantine, albeit with a staged reduction in the royalty rates beginning in F3Q08. Based on firm’s current fair value est of $11.00-13.00 per share, they believe investors should continue aggressively accumulating shares at this time.
07:24 TESO Tesco: Gaining traction; meaningful growth potential - FBR (23.45 )

Friedman Billings says TESO reported EPS of $0.18, ahead of their est of $0.16. A strong performance from the casing services segment, including strong sequential rev growth from Casing Drilling accounted for the variance. Mgmt’s commentary on the call highlighted the advantages the versatility of the top-drive business offers and the customer traction Casing Drilling is gaining. They believe customer traction is building, and the foundation is set for TESCO’s proprietary services to grow meaningfully in 2008.
07:22 CHGS China Gengsheng Minerals initiated with a Buy at Brean Murray- tgt $6 (3.05 )

Brean Murray initiates CHGS with a Buy and a $6 tgt saying driven by an up-cycle in its core business and new product introductions into other verticals, they project that China GengSheng’s revenue and earnings will accelerate over the next three years. The firm says aiming to improve efficiency and reduce pollution, the Chinese government has mandated consolidation within the steel industry and the closing of polluting old mills that fail new emission standards. As such, customized, high-quality refractories have become critical to steel producers in order to improve efficiency, reduce energy consumption, and lower emissions.
07:22 MANT ManTech profiled in New America section of IBD (43.56 )

IBD reports “the last couple years have really been drug down by spending in Iraq for basics, like gasoline, bullets and keeping an army in the field,” said Joseph Vafi, analyst with Jefferies. “To some degree, IT has been neglected. But that can’t go on forever.” However the co is looking forward to a hike in IT spending in the proposed fiscal 2009 budget. “I think (government officials) have to turn back to those technology issues that had secondary priority,” said Joe Cormier, ManTech’s vice president of corporate development… ManTech does not create its own IT, but integrates and manages high-tech systems in military operations… MANT has been buying up cos that can share information securely and help analyze it to make a larger picture. Cormier and Vafi see ManTech’s expansion in high-end intelligence work as a way to distinguish itself from the field. It also has helped the co bulk up… The fact that the U.S. military is getting a new commander in chief this fall adds a note of uncertainty to defense contractors. But ManTech has seen presidents come and go in its 40-year lifetime. And the nature of the present threat makes demand for intelligence all the higher, Cormier believes… “Regardless of (whether there’s) a Democrat or Republican in power, when they get their first security briefing it’s going to be difficult for anybody to either lower funding for homeland security or lower funding to combat the threats of terrorism that could come again onto our shores,” said Cormier. Vafi says that even if the next president tries for a fast withdrawal from Iraq, that will probably only bring more demand for logistic services like ManTech’s. However, most projects involving the co are relatively long term, he says. Analysts polled by Thomson Financial expect ManTech’s profit to grow 23% this year to $2.37 a share, accelerating from 17% last year. They expect profit to rise 14% to $2.69 a share in 2009.
07:21 GPS Gap: 4Q07 preview; EPS at high end of range; turnaroud begins to take shape - FBR (19.96 )

Friedman Billings says on February 28, GPS will report 4Q07 earnings. Firm is at $0.35 for 4Q07 vs. the Street at $0.34. On the call, they expect the co to guide to FY08 earnings. Firm is admittedly cautious regarding the FY08 outlook for the consumer, and as a result are at $1.16 for the year vs. the Street at $1.24. Firm continues to recommend GPS shares as one of their favorite 12- to 18-month value names. They believe that CEO Glenn Murphy will continue to focus on the essential elements of the turn in GPS: 1) improving product across all the brands; 2) improving return on invested capital by particularly focusing on the real estate strategy; 3) continuing to strive for better productivity and cost efficiencies; 4) improving execution on a day-to-day basis; and 5) attracting and retaining the right people to effect these changes at GPS.
07:20 GB Wilson Greatbatch: Many moving parts but guidance beatable - Lehman (21.85 )

Lehman says that despite the integration risks, they view the risk-reward for GB as favorable given that GB trades at only 1.5x their 2009 rev est of $525 mln and just over 7 times cash flow and 13.3x 09 earnings. Firm is confident GB will see upside to their 2008 numbers and drive 15%+ earnings growth in 2009- 2010. Firm believes the 2008 guidance that mgmt provided looks very conservative and they believe this mgmt team has the capability to successfully integrate the deals and drive significant operating leverage over the next three years.
07:20 JWN Nordstrom: Lehman cuts 2008, 2009 ets (36.98 )

Lehman says JWN reported 4Q07 EPS of $0.92, in-line with their est. Total sales decreased 4.4% to $2.51 bln on a comp store sales decline of 0.7%. The credit card delinquency rate increased 54 bps to 2.6% (well below the industry avg. of 4.4%) and write-offs increased 139 bps to 4.4%. Incremental bad debt expense negatively impacted 4Q07 and 2007 by $0.04 and $0.11, respectively. The credit card business represents 5%-7% of annual EPS and mgmt strongly believes it is a crucial part of the co’s integrated business model. Total inventory decreased 4.1%. Inventory appears well positioned for the current runrate of the business. The company has an opportunity to partially offset negative profitability pressures in a challenging macroeconomic environment through flexible inventory mgmt, strong vendor relationships, and a broad incentive based compensation plan. Firm decreases their 2008 and 2009 EPS ests to $2.80 (consensus $2.9 and $3.20 from $3.05 and $3.45, respectively.
07:20 TYPE Monotype Imaging reports Q4 EPS of $0.11, may not comapre to the $0.14 consensus; reports revs up 8% yr/yr to $27.5 mln vs $27.0 mln consensus (12.78 )

Co sees Y08 EPS of $0.46-0.51, may not comapre to the $0.69 consensus; co sees revs of $112-116 mln vs $112.4 mln consensus.
07:19 GPI Group 1 Auto beats by $0.09, reports revs in-line; guides FY08 EPS below consensus (24.84 )

Reports Q4 (Dec) earnings of $0.70 per share, excluding non-recurring items, $0.09 better than the First Call consensus of $0.61; revenues rose 1.5% year/year to $1.53 bln vs the $1.53 bln consensus. Co issues downside guidance for FY08, sees EPS of $2.95-3.25 vs. $3.50 consensus.
07:19 Q Qwest: Remains among the cheapest stocks in telecom services - Lehman (5.60 )

Lehman says yesterday at their analyst day Q reaffirmed ‘08 guidance. Firm believes Q remains among the cheapest stocks in telecom services based on FCF yield. Given current sustainable opportunities for FCF distribution to shareowners, they remain positive on the shares. Firm Management expanded on its five key areas of focus, which include: 1) simplified integrated solutions; 2) deeper partnerships and new relationships; 3) expanded broadband capacity; 4) focus on efficiency and productivity; and, 5) sustainable profitable growth and shareholder returns.
07:18 KSWS K-Swiss issues downside guidance in earnings press release (16.72 )

Co issues downside guidance for Q1 (Mar), sees EPS of $0.18-0.28 vs. $0.33 First Call consensus; sees Q1 (Mar) revs of $95-105 mln vs. $107.90 mln consensus. Co issues downside guidance for FY08 (Dec), sees EPS of $0.10-0.35 vs. $0.85 consensus; sees FY08 (Dec) revs of $310-340 mln vs. $388.64 mln consensus. See 6:10 comment for the full earnings report.
07:18 GOOG Google: Weak clicks, by GOOG design, could drive higher pricing long-term - Susquehanna (486.44 )

07:18 ODP Office Depot reports Q4 (Dec) results, beats on revs; same store sales down 7%; CFO to leave (14.27 +0.17)

Reports Q4 (Dec) earnings of $0.10 per share, may not be comparable to the First Call consensus of $0.17; revenues rose 0.6% year/year to $3.87 bln vs the $3.83 bln consensus. Results for the quarter included an as adjusted tax benefit of $30 million. Comparable store sales in the 1,158 stores in the U.S. and Canada that have been open for more than one year decreased 7% for the fourth quarter. Results continue to be negatively impacted by difficult housing-related economic conditions in key markets, particularly Florida and California. Office Depot is announcing that its Executive Vice President and Chief Financial Officer, Patricia A. McKay, is leaving the Company effective March 1, 2008. Charles E. Brown, the Company’s President, International, has agreed to assume the role of acting Chief Financial Officer following McKay’s departure.
07:16 Foreclosure activity increases 8% in January according to RealtyTrac

RealtyTrac today released its January 2008 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, auction sales notices and bank repossessions — were reported on 233,001 properties during the month, an increase of 8% from the previous month and an increase of nearly 57 percent from Jan 2007… “January’s foreclosure numbers demonstrate that foreclosure activity is continuing on its upward trend, substantially increasing from a year ago in many states,” said James Saccacio, CEO of RealtyTrac. “However, the 8 percent monthly increase in January is not as precipitous as the 19% spike we saw in January of 2007, and several key states actually experienced decreasing foreclosure activity from the previous month. It could be that some of the efforts on the part of lenders and the government — both at the state and federal level — are beginning to take effect. The big question is whether those efforts are truly helping homeowners avoid foreclosure in the long term or if they are just temporarily forestalling the inevitable for many beleaguered borrowers.”
07:15 BCO Brinks upgraded to Buy at Jefferies- tgt $80 (67.91 )

Jefferies upgrades BCO to Buy from Hold and raises their tgt to $80 from $64 saying with a clear margin expansion strategy and resulting increase in earnings forecast and corresponding increase in tgt, the firm believes the shares offers investors over 15% upside.
07:15 SIRI Sirius Satellite beats by $0.02, misses on revs (3.04 )

Reports Q4 (Dec) loss of $0.11 per share, $0.02 better than the First Call consensus of ($0.13); revenues rose 29.2% year/year to $249.8 mln vs the $267.4 mln consensus. During the fourth quarter 2007, SIRIUS added 654,309 net subscribers and, according to the NPD Group, SIRIUS achieved a 68% share of aftermarket satellite radio sales, its highest ever share. Co said that following approval of the pending merger by the government, its will provide guidance for 2008.
07:15 CBRL CBRL Group beats by $0.16, reports revs in-line; reaffirms FY08 EPS guidance (34.44 )

Reports Q2 (Jan) earnings of $0.85 per share, $0.16 better than the First Call consensus of $0.69; revenues rose 3.7% year/year to $634.5 mln vs the $638.3 mln consensus. Co reaffirms guidance for FY08, sees EPS of $3.00-3.15 vs. $2.90 consensus; co sees revs up approx 2-3% yr/yr. Co reports Q2 comparable store restaurant sales +1.1% vs +1.1% Briefing.com consensus; co reports Q2 comparable store retail sales +1.4% vs -0.5% Briefing.com consensus.
07:13 GS Goldman Sachs estimates slashed by Merrill’s Moszkowski- Bloomberg.com (177.36 )

Bloomberg.com reports Goldman Sachs Group Inc.’s first- quarter earnings estimates were cut by Merrill Lynch partly because of slumping equity markets. The earnings-per-share forecast was lowered to $2.31 from $3.97, analyst Guy Moszkowski wrote in a research note to investors today. Goldman is expected to earn $3.34 a share in the first quarter, down from $6.67 a year earlier, according to the average of 17 analyst estimates compiled by Bloomberg. “Based on recent market movements, we are trimming our first- quarter forecast,” Moszkowski wrote. “Market action in February has been such that we need to take another look.” Analysts are slashing estimates for banks amid market declines following the U.S. subprime mortgage crisis. The world’s biggest banks and securities firms have reported $163 bln of writedowns and credit losses since the beginning of 2007 amid the worst U.S. housing-market slowdown in a quarter century. Moszkowski also lowered his first-quarter net revenue estimate for Goldman, the world’s biggest securities firm, to $7.5 bln from $9.6 bln.
07:12 WIRES On The Wires

Yucheng Technologies (YTEC) announces that it has executed an agreement with China Construction Bank in Guangdong province to provide outsourced Point of Sale merchant acquiring services targeting merchants across Guangdong province excluding the city of Shenzhen… AMETEK (AME) announces that it has acquired the Motion Control Group, a global manufacturer of highly customized motors and motion control solutions for the medical, life sciences, industrial automation, semiconductor and aviation markets.
07:11 CZN Citizens beats by $0.02, reports revs in-line (11.49 )

Reports Q4 (Dec) earnings of $0.18 per share, $0.02 better than the First Call consensus of $0.16; revenues rose 14.4% year/year to $577.2 mln vs the $575 mln consensus.
07:11 ALO Alpharma reports Q4 (Dec) results, beats on revs (25.53 )

Reports Q4 (Dec) earnings of $0.25 per share ex items, may not be comparable to the First Call consensus of $0.03; revenues rose 16.9% year/year to $199.1 mln vs the $186 mln consensus.
07:09 BABY Natus Medical misses by $0.01, beats on revs; reaffirms guidance for Q1 & FY08 (19.18 )

Reports Q4 (Dec) earnings of $0.17 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.18; revenues rose 18.9% year/year to $34.2 mln vs the $33.8 mln consensus. Co reaffirms guidance for Q1, sees EPS of $0.09-0.10 vs. $0.10 consensus; sees Q1 revs of $34-36 mln vs. $35.37 mln consensus. Co reaffirms guidance for FY08, sees EPS of $0.68-0.70 vs. $0.68 consensus; sees FY08 revs of $160 mln vs. $159.81 mln consensus.
07:09 TYPE sees FY08 $0.46-0.51 vs $0.69 First Call consensus; sees revs $112-116 mln vs $112.40 mln First Call consensus

07:08 NMHC Natl Med Health to be acquired by SXC Health Solutions for an estimated $11/share (9.85 )

SXC Health Solutions (SXCI) and NMHC announce that the two companies have entered into a definitive agreement for SXCI to acquire NMHC pursuant to an exchange offer. The purchase price will be funded with a combination of 70% cash and 30% SXC stock, resulting in a transaction value of approximately $143 million, or an estimated $11.00 per share. Excluding special items and including anticipated synergies, SXCI expects the acquisition to be dilutive to it’s EPS in fiscal 2008 and accretive thereafter.
07:08 TYPE prelim $0.11 vs $0.14 First Call consensus; revs $27.5 mln vs $26.97 mln First Call consensus

07:08 HSII Heidrick & Struggles misses by $0.06, beats on revs; guides FY08 revs above consensus (29.00 )

Reports Q4 (Dec) earnings of $0.49 per share, $0.06 worse than the First Call consensus of $0.55; revenues rose 16.2% year/year to $153.6 mln vs the $142.5 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of $650-670 mln vs. $605.99 mln consensus; co is target Y08 operating margin of approx 13%.
07:08 ASTE Astec Industries beats by $0.09, beats on revs; guides FY08 EPS above consensus, revs above consensus (31.81 )

Reports Q4 (Dec) earnings of $0.50 per share, $0.09 better than the First Call consensus of $0.41; revenues rose 36.3% year/year to $221 mln vs the $200.9 mln consensus. Co issues upside guidance for FY08, sees EPS of $2.80-2.95 vs. $2.77 consensus; sees FY08 revs of $1 bln vs. $930.05 mln consensus.
07:07 AACC Asset Acceptance Capital misses by $0.04, misses on revs (9.79 )

Reports Q4 (Dec) earnings of $0.13 per share, $0.04 worse than the First Call consensus of $0.17; revenues rose 1.1% year/year to $62.2 mln vs the $64.3 mln consensus.
07:06 AZO AutoZone beats by $0.05, misses on revs (117.37 )

Reports Q2 (Feb) earnings of $1.67 per share, $0.05 better than the First Call consensus of $1.62; revenues rose 3.0% year/year to $1.34 bln vs the $1.35 bln consensus.
07:06 PFGC Performance Food beats by $0.01, reports revs in-line; guides FY08 EPS in-line (32.34 )

Reports Q4 (Dec) earnings of $0.43 per share, $0.01 better than the First Call consensus of $0.42; revenues rose 10.3% year/year to $1.63 bln vs the $1.63 bln consensus. Co issues in-line guidance for FY08, sees EPS of $1.53-1.65, excluding non-recurring items, vs. $1.56 consensus.
07:06 GPI sees FY08 $2.95-3.25 vs $3.50 First Call consensus

07:05 CBS CBS Corp beats by $0.02, reports revs in-line (25.00 )

Reports Q4 (Dec) earnings of $0.54 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.52; revenues fell 3.2% year/year to $3.76 bln vs the $3.74 bln consensus. CBS expects OBIDA and operating income growth to be in the range of 3-5% for 2008, excluding stock based comp.
07:05 NPD China Nepstar Chain Drugstore to acquire 68 drugstores from Ningbo New Century Medical (11.57 )

Co announces that it has entered into a definitive agreement to acquire all of the 68 drugstores (including inventory and store equipment) owned by Ningbo New Century Medical for cash consideration of $4.1 mln. The New Century drugstore chain was established in 2002 and generated revenue of approx $6.8 mln in 2007.
07:05 LINE Linn Energy upgraded to Buy from Neutral at Merrill (22.56 )

07:05 PFGC sees FY08 $1.53-1.65 vs $1.56 First Call consensus

07:05 GPI prelim $0.70 vs $0.61 First Call consensus; revs $1.53 bln vs $1.53 bln First Call consensus

07:05 CZN prelim $0.18 vs $0.16 First Call consensus; revs $577.2 mln vs $574.99 mln First Call consensus

07:04 PFGC prelim $0.43 vs $0.42 First Call consensus; revs $1.6 bln vs $1.63 bln First Call consensus

07:04 ALO prelim $0.13 ex items, $0.03 First Call consensus; revs $199.1 mln vs $186.03 mln First Call consensus

07:03 TLAB Tellabs names Robert Pullen Chief Executive Officer, President and Director; effective March 1 (6.90 )

07:03 CBS expects OBIDA and operating income growth to be in the range of 3-5% for 2008, excluding stock based comp

07:03 AZO prelim $1.67 vs $1.62 First Call consensus; revs $1.34 bln vs $1.35 bln First Call consensus

07:03 AACC prelim $0.13 vs $0.17 First Call consensus; revs $62.2 mln vs $64.30 mln First Call consensus

07:02 SIRI Following approval of the pending merger by the government, SIRIUS will provide guidance for 2008.

07:02 CBS prelim $0.54 vs $0.52 First Call consensus; revs $3.76 bln vs $3.74 bln First Call consensus

07:02 ODP prelim $0.10 vs $0.17 First Call consensus; revs $3.87 bln vs $3.83 bln First Call consensus

07:02 ASTE sees FY08 $2.80-2.95 vs $2.77 First Call consensus; sees revs $1 bln vs $930.05 mln First Call consensus

07:02 HSII sees FY08 revs $650-670 mln vs $605.99 mln First Call consensus

07:02 ASTE prelim $0.50 vs $0.41 First Call consensus; revs $221.0 mln vs $200.85 mln First Call consensus

07:02 SIRI prelim ($0.10) vs ($0.13) First Call consensus; revs $249.8 mln vs $267.43 mln First Call consensus

07:02 HSII prelim $0.49 vs $0.55 First Call consensus; revs $153.6 mln vs $142.53 mln First Call consensus

07:01 BABY reaffirms FY08 $0.68-0.70 vs $0.68 First Call consensus; sees revs $160 mln vs $159.81 mln First Call consensus

07:01 NTII Neurobiological Tech announces amendment of license and cooperation agreement with Merz Pharmaceuticals and Childrens’ Hospital (2.70 )

Co announces the amendment of its license and cooperation agreement with Merz Pharmaceuticals GmbH and Childrens’ Medical Center relating to memantine, which is currently marketed in the United States as Namenda. The amendment modifies the terms of the royalties to be paid to the company on sales of memantine, including discontinuing the payment of royalties on sales of memantine for Alzheimer’s disease outside of the United States beginning in the fourth quarter of 2007 and providing for a staged reduction in the royalty rates to be paid to the company and CMCC on sales of memantine in the United States beginning in the third quarter of 2008.
07:01 MSON Misonix announced that it has begun selling its SonaStar Ultrasonic Surgical Aspiration System into Ecuador (4.39 )

Co announces that it has begun selling its SonaStar Ultrasonic Surgical Aspiration System into Ecuador in collaboration with B. Braun Medical, S.A. To date, three systems have been sold, shipped, and placed in hospitals. An order has been received for a fourth system, which will ship in the near future.
07:01 BABY reaffirms Q1 $0.09-0.10 vs $0.10 First Call consensus; sees revs $34-36 mln vs $35.37 mln First Call consensus

07:01 CBRL sees FY08 $3.00-3.15 vs $2.90 First Call consensus

07:01 BABY prelim $0.17 vs $0.18 First Call consensus; revs $34.2 mln vs $33.83 mln First Call consensus

07:00 CBRL prelim $0.85 vs $0.69 First Call consensus; revs $634 mln vs $638.27 mln First Call consensus

06:55 HMIN Home Inns upgraded to Positive from Neutral at Susquehanna (27.01 )

06:52 MA MasterCard upgraded to Neutral at Credit Suisse- tgt $215 (198.45 )

Credit Suisse upgrades MA to Neutral from Underperform and raises their tgt to $180 from $215 saying they are establishing 2009 EPS estimate of $9.00, up 20% from their 2008 EPS estimate of $7.50. Firm says the primary drivers to the expected EPS are 20% growth in worldwide gross dollar volume, 16.5% increase in processed transactions, modest revenue yield compression, and increased advertising and marketing efforts. However the firm says they continue to believe that there will be continued pressure on network economics, as industry consolidation will likely result in lower pricing. In addition, the combination of regulatory and legal pressures on interchange could result in a reduction of the fees received by processors.
06:49 TWTI Third Wave misses by $0.01, reports revs in-line; guides FY08 revs below consensus (7.38 )

Reports Q4 (Dec) loss of $0.18 per share, $0.01 worse than the First Call consensus of ($0.17); revenues rose 30.8% year/year to $8.9 mln vs the $8.8 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $36-37.5 vs. $39.25 mln consensus.
06:48 HWAY Healthways reaffirms Q2, issues downside Y08 guidance (45.35 )

Co reaffirms guidance for Q2 (Feb), sees EPS of $0.32-0.34 vs. $0.34 First Call consensus. Co issues downside guidance for FY08 (Aug), sees EPS of $1.50-1.55, compared to previous guidance of $1.77-1.86, vs. $1.79 consensus; sees FY08 (Aug) revs of $720-740 mln, compared to previous guidance of $782-815 mln, vs. $790.74 mln consensus. “We are revising our fiscal 2008 guidance at this time primarily due to slower-than-projected enrollment in a new Health Support program with one large health plan customer and the recent indication that two previously anticipated contracts will not materialize during this fiscal year.”
06:47 FWLT Foster Wheeler misses by $0.20, beats on revs (79.16 )

Reports Q4 (Dec) earnings of $0.56 per share, excluding non-recurring items, $0.20 worse than the First Call consensus of $0.76; revenues rose 22.8% year/year to $1.47 bln vs the $1.42 bln consensus. Co sees a material level of margin improvement and revenue growth during the year given their position and momentum entering 2008.
06:38 CALLS Early Research Calls III

Downgrades: Merrill downgrades Sinopec (SNP 108.82) to Neutral from Buy… Merrill downgrades Petrochina (PTR 150.65) to Sell from Buy. Miscellaneous: Jefferies inititates Nova Biosource (NBF 2.02) with a Buy and a $3.75 tgt saying with more than 100 mln gallons of biodiesel capacity slated to come onstream by 2009, coupled with a sustainable cost advantage based on both feedstock sourcing and process technology, Nova Biosource provides an attractive risk/reward for biofuels investors… Wachovia initiates Elizabeth Arden (RDEN 18.72) with a Market Perform.
06:33 KWK Quicksilver Resrcs misses by $0.06, misses on revs (36.51 )

Reports Q4 (Dec) earnings of $0.18 per share, excluding non-recurring items, $0.06 worse than the First Call consensus of $0.24; revenues rose 46.2% year/year to $149.1 mln vs the $152.8 mln consensus. Co sees Q1 production volume to average 210-220 MMcfe per day.
06:33 SAFM Sanderson Farms beats by $0.28, misses on revs (35.50 )

Reports Q1 (Jan) earnings of $0.30 per share, $0.28 better than the First Call consensus of $0.02; revenues rose 23.9% year/year to $362.6 mln vs the $400 mln consensus.
06:31 KGS Quicksilver Gas reports Q4 EPS of $0.13 vs $0.13 two analyst estimate; reports revs up 235% yr/yr to $13.2 mln vs $12.4 mln single estimate (24.21 )

06:31 CALLS Early Research Calls II

Upgrades: JP Morgan upgrades Rite Aid (RAD 2.61) to Overweight from Neutral… Jefferies upgrades OmniVision Tech. (OVTI 13.23) to Buy from Hold and lowers their tgt to $16.50 from $20, as they believe fundamentals will likely bottom in the April quarter due to improving seasonality, mix shift to higher resolution sensors, improving gross margins and note shares are trading at 2x cash… Oppenheimer upgrades Occidental Petroleum (OXY 76.03) to Outperform from Perform and sets a $90 tgt, based on shares trading at a discount to peers on a P/E basis and production growth… Bear Stearns upgrades Repsol (REP 33.45) to Outperform from Peer Perform. Downgrades: Merrill Lynch downgrades Novo Nordisk (NVO 70.6 to Neutral from Buy… UBS downgrades Cott (COT 4.05) to Neutral from Buy… BofA downgrades Paychex (PAYX 33.30) and Automatic Data Processing (ADP 40.95) to Neutral from Buy and cuts their tgt on PAYX to $34 from $46 and ADP to $42 from $50 saying the core piece of their buy thesis, which is PAYX and ADP’s multiple historically has expanded during periods of declining corporate profit growth, is not materializing this time around; firm says there is increased risk to small/medium business environment as they expect the tighter lending environment to choke off investment over the next several quarters; and investor sentiment to the payroll stocks has changed as these stocks are now discounting changes to nonfarm payroll immediately… Bear Stearns downgrades Novo Nordisk (NVO 70.6 to Peer Perform from Outperform.
06:30 RRD Donnelley & Sons awarded $800 mln multi-year contract by The McGraw-Hill Companies (32.84 )

Co announces that it has been awarded an $800 mln contract by McGraw-Hill Education. The seven year agreement includes a wide range of products including textbooks, workbooks, testing materials, teachers’ editions and ancillary products.
06:26 CALLS Early Research Calls I

Upgrades: Oppenheimer upgrades Teradyne (TER 10.93) to Outperform from Perform and sets a $16 tgt, based on the co finally obtaining a forecast for volume orders in Q2 out of ATI after winning the test sockets in late ‘06/early ‘07, a full product pipeline vs competitor Verigy, the LCD driver IC business that is essentially going from zero to $30 mln, int their view, and believe they will benefit incrementally in ‘08 as Broadcom transitions to TER’s Epsilon on UltraFLEX… JMP Securities upgrades DemandTec (DMAN 9.41) to Strong Buy from Market Outperform and lowers their tgt to $15 from $18, based on checks that indicate a strong close to its fiscal year, traction with its Promotions product after announcing a sizable win with ConAgra and believe there could be another large Promotions deal in the pipeline with an existing customer… UBS upgrades NSTAR (NST 31.49) to Buy from Neutral… JP Morgan upgrades PG&E (PCG 39.24) to Overweight from Neutral… JP Morgan upgrades Hutchinson Tech. (HTCH 17.34) to Neutral from Underweight… BofA upgrades Maguire Properties (MPG 24.30) to Neutral from Sell and raises their tgt to $25 from $21 noting the results of the co’s announced strategic review is expected within the next few weeks. The firm says they have no particular edge on the outcome but note that there is heightened potential for a take-out, given this possibility, they recommend investors who are short the stock cover their positions… BofA upgrades MarketAxess (MKTX 9.57) to Neutral from Sell and cuts their tgt to $9.75 from $10 based on valuation… JP Morgan upgrades Quantum (QTM 2.54) to Neutral from Underweight.
06:23 CLR Continental Resources reports Q4 EPS of $0.44, ex-items, vs $0.44 consensus; reports total revs up 39% yr/yr to $159.0 mln (25.77 )

06:22 European shares gain

European shares rose on Tuesday, as upbeat results from Britain’s Standard Chartered supported banks, while reassurance over the creditworthiness of the two largest U.S. bond insurers boosted insurance stocks. Shares in Standard Chartered jumped 6.3%, making it one of the biggest gainers on the index, after the Asia-focused bank beat expectations with a 27% rise in annual profit and said it is confident of a strong 2008. At 1005 GMT, the FTSEurofirst 300 index was up 1.2% to 1,358.07 points — close to the day’s high. The index rose 1.7% on Monday but is still down 10% so far this year. Around Europe, Britain’s FTSE 100 was up 1.2%, Germany’s DAX rose 1.6% and France’s CAC 40 gained 1.1%. (Reuters)
06:22 Nikkei slips 0.7 pct, HK blue chips advance; Sensex ends up 156pts

Japanese stocks gave up early gains to end lower on Tuesday, going into reverse after scoring a six-week closing high the previous day, with mobile carrier KDDI Corp hurt by a ratings downgrade. The Nikkei average .N225 fell 0.7% or 89.85 points to end at 13,824.72, after jumping more than 3% on Monday. The broader TOPIX index fell 0.6% or 8.07 points to 1,347.47. Global bank HSBC Holdings led Hong Kong blue chips up nearly 2% on Tuesday on signs the world’s largest bond insurers would stabilise, easing concerns about subprime-related losses at the biggest banks. The benchmark Hang Seng Index ended up 1.9%, or 445.61 points, at 23,714.75. The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, finished up nearly 1%, or 123.86 points, at 13,326.84… The Sensex opened with a positive gap of 149 points at 17,800, but dropped to a low of 17,679 in mid-noon deals. Renewed buying in late noon deals saw the index surge to a high of 17,860 - up 209 points from the previous close. The Sensex finally ended with a gain of 156 points at 17,806. The NSE Nifty gained 69 points at 5,270. (Reuters, Business Standard)
06:18 FORM FormFactor announces resignation of CFO Ronald Foster (19.04 )

06:17 IGLD Internet Gold reports Q4 (Dec) results, misses on revs (10.14 )

Reports Q4 (Dec) earnings of $1.20 per share, inlcuedes gains, doesn’t compare to the First Call consensus of $0.18; revs $74.4 mln vs $82.53 mln consensus.
06:16 RSH RadioShack beats by $0.05, beats on revs (15.74 )

Reports Q4 (Dec) earnings of $0.77 per share, $0.05 better than the First Call consensus of $0.72; revenues fell 6.4% year/year to $1.36 bln vs the $1.33 bln consensus.
06:14 S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: +4.0.
06:13 European Markets

FTSE…6070.50…+71.00…+1.2%. DAX…6991.90…+109.39…+1.6%.
06:13 Asian Markets

Nikkei…13824.72…-89.85…-0.7%. Hang Seng…23714.75…+455.61…+1.9%.
06:13 MDC MDC Holdings announces CFO Paris Reece III will retire June 30, 2008 (43.41 )

06:13 CRDN Ceradyne misses by $0.02, beats on revs; lowers FY08 guidance (47.15 )

Reports Q4 (Dec) earnings of $1.28 per share, $0.02 worse than the First Call consensus of $1.30; revenues rose 7.1% year/year to $191.4 mln vs the $186 mln consensus. Co lowers guidance for FY08, to EPS of $4.55-5.05 from $5.60-6.65 vs. $5.67 consensus; sees FY08 revs of $715-836 mln down from $780-1.06 bln prior guidance vs. $831.48 mln consensus.
06:12 WIRES On The Wires -Update-

Converted Organics (COIN) announces they have entered into an agreement with affiliates of RNK Capital LLC to structure and manage commodity transactions in the global emissions trading markets… Superior Energy Services (SPN) announces that it has entered into a purchase agreement to sell 75% of its interest in SPN Resources LLC to Dynamic Offshore LLC and its affiliated companies for $165 mln in cash… RadNet (RDNT) reports that it has signed a definitive agreement to purchase the assets of six imaging centers from InSight Health for $8.5 mln… Quanta Services (PWR) announces that it has secured a contract with the Lower Colorado River Authority at an estimated value of up to $194 mln over five years… Teton Energy (TEC) announces it has signed a Letter of Intent to acquire reserves, production and certain oil and gas properties in the Central Kansas Uplift of Kansas from a group of approx 14 working interest owners for approx $53.4 mln before adjustments.
06:10 KSWS K-Swiss misses by $0.02, beats on revs (16.72 )

Reports Q4 (Dec) earnings of $0.02 per share, $0.02 worse than the First Call consensus of $0.04; revenues fell 16.7% year/year to $78.2 mln vs the $76.7 mln consensus.
06:08 KBR KBR Inc. misses by $0.04, beats on revs (34.05 )

Reports Q4 (Dec) earnings of $0.28 per share, excluding $0.14 gain, $0.04 worse than the First Call consensus of $0.32; revenues rose 4.3% year/year to $2.39 bln vs the $2.27 bln consensus.
06:06 FDP Fresh Del Monte beats by $0.27, beats on revs (32.72 )

Reports Q4 (Dec) earnings of $0.68 per share, excluding non-recurring items, $0.27 better than the First Call consensus of $0.41; revenues rose 15.0% year/year to $848.2 mln vs the $771.2 mln consensus.
06:04 HD Home Depot misses by $0.03, misses on revs; expects FY08 sales decline of 4-5% and 19-24% drop in EPS (28.82 )

Reports Q4 (Jan) earnings of $0.40 per share, $0.03 worse than the First Call consensus of $0.43; revenues rose 1.5% year/year to $17.66 bln vs the $18.02 bln consensus. In FY08, co sees a total sales decline of 4-5%. Comps are expected to be negative in the mid to high single digit range. Continuing operations EPS decline of 19-24% is anticipated.
05:54 POR Portland General Electric misses by $0.02, reaffirms FY08 EPS guidance (23.57 )

Reports Q4 (Dec) earnings of $0.40, $0.02 worse than the First Call consensus of $0.42; revenues rose 13.0% year/year to $470.0 mln vs the $436.61 mln consensus. Co issues in-line guidance for FY08, sees EPS of $1.75-1.85 vs $1.82 consensus.
05:37 VMW VMware announces agreements to embed WMware ESX 3i hypervisor across broad lines of servers from Dell, Fujitsu-Siemens, HP and IBM (58.29 )

Co announces agreements to embed the VMware ESX 3i hypervisor in servers from Dell (DELL), Fujitsu Siemens Computers, HP (HPQ) and IBM (IBM). Partners are expected to begin shipping servers embedded with the VMware ESX 3i hypervisor within the next 60 days.
05:35 AXL UAW goes on strike against American Axle - Reuters (22.97 )

Reuters reports UAW began a strike against American Axle & Manufacturing (AXL) shortly after midnight on Tuesday after failing to reach agreement on a new contract. Workers in Detroit walked off the job shortly after midnight and quickly formed a picket at a gate carrying signs that read “Unfair Labor Practices” and “On Strike.” The UAW contract covering about 3,600 American Axle workers at plants in Michigan and New York expired late Monday. Analysts have said a prolonged UAW strike against the co has the potential to disrupt production of trucks and SUVs by General Motors (GM), which ranks as the supplier’s largest customer.
05:31 NY attorney general near Fannie, Freddie deal - Reuters

Reuters reports Fannie Mae (FNM) and Freddie Mac (FRE) would require their mortgage lending partners to have independent appraisals of home values under a deal being thrashed out with New York’s attorney general, sources familiar with a draft deal said on late Monday. Home appraisals would have to come from assessors that do not have formal ties with a lender or mortgage broker, according to sources familiar with negotiations over a deal that could be finalized as soon as Tuesday. Lenders wishing to sell their mortgages to the nation’s two largest sources of home finance would have to make sure that they did not rely on in-house appraisers and did not own an appraisal firm itself, according to an outline of the plan drafted by Fannie Mae and which has been obtained by Reuters. Details of the plan were first reported by the American Banker in its Tuesday edition. Fannie Mae and Freddie Mac would create a clearinghouse of appraiser information conduct and activity, according to the plan, sources familiar with a draft said on Monday. “All lenders will be required to provide post-purchase copies of appraisal documents to the Clearinghouse,” according to a Fannie outline of the plan. “It will be an independent entity with an executive and board of directors (and) It will staff a hotline for industry and consumer complaints.” The new standards could be in place by September, the sources said.
05:28 C Citi discloses that traders in its investment bank piled up daily losses of more than $100 mln on 15 separate occasions last year - WSJ (24.74 )

The Wall Street Journal reports Citigroup (C) disclosed that traders in its investment bank piled up daily losses of more than $100 mln on 15 separate occasions last year. Those 15 days, which Citigroup disclosed in its annual report filed late Friday but declined yesterday to describe in detail, added to worries the bank’s problems are deeper than those that led to about $20 bln in mortgage-related write-downs last year, the ouster of its chief executive and a sinking stock price. In a statement last night, a Citigroup spokeswoman said the trading disclosure “highlights the volatility that existed in the markets in 2007. There were many days when we saw significant gains, including more than 55 where revenue gains exceeded $100 mln.” In its report, Citigroup gave significantly more detail about its exposure to and involvement with off-balance-sheet vehicles. The figures suggested investors still need to worry about what they can’t quite see on the bank’s books. Citigroup said off-balance-sheet entities connected to it had total assets of $356 bln, compared to $388 bln at the end of 2006. The 2007 figure, however, didn’t include $58 bln in SIVs, assets Citigroup now carries on its own books, which were included in the prior year’s tally. Of those assets, Citigroup has a maximum possible exposure to loss of about $152 bln, compared to $148 bln the previous year. About $14 bln of this potential loss comes from the bank’s continuing exposure to CDOs which analysts fear could be in for further downgrades.
05:21 SI Siemens’s job cuts reflect telecom woes - WSJ (132.80 )

The Wall Street Journal reports Siemens (SI) said on Tuesday it plans to slash 3,800 jobs from its telecom-equipment unit that supplies corporate customers and shift roughly 3,000 other workers elsewhere. Up to 2,000 jobs will be cut in Germany and the remaining 1,800 will be cut abroad, the co said. The restructuring comes as Siemens continues to seek a partner for the business or to sell it outright. The job cuts highlight the difficulties facing European telecom-equipment suppliers, which are grappling with falling prices and rising competition from rivals in countries such as China where labor costs are lower.
05:19 Early Newspaper Headlines: SI - C - FNM/FRE - AXL

WSJ: Siemens’s (SI) jobs cuts reflect telecom woes… Citi (C) discloses that traders in its investment bank piled up daily losses of more than $100 mln on 15 separate occasions lat year. Reuters: NY attorney general near Fannie, Freddie deal (FNM/FRE)… UAW goes on strike against American Axle (AXL).
04:06 WIRES On The Wires -Update-

Fluor Corporation (FLR) announces that it was awarded the project management for a portion of Repsol YPF’s refinery expansion in Cartagena, Spain; scope of work on project is worth approx $1.3 bln and was booked into co’s backlog in Q407.
01:31 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Sara Lee (SLE), Dentsply International (XRAY), Garmin (GRMN), Goldman Sachs (GS), Switch & Data (SDXC) and New York Community Bancorp (NYB).
01:30 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Humana (HUM), UnitedHealth Group (UNH), Yamana Gold (AUY), Manitowoc (MTW), Hudson City Bancorp (HCBK) and Skechers USA (SKX).
01:29 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Monday’s edition, Jim recommends Millicom International Cellular (MICC), a Luxembourg-based co that builds, develops and operates cellular networks in Central and South America, Africa and Asia. According to Cramer, MICC has access to potentially 151 mln subscribers in Africa, 59 mln in South America, 26 mln in Central America and another 40 mln in Asia. The co, he notes, does exceptionally well in the countries in which it operates by taking advantage of prepaid calling cards and billing by the second, as opposed to the minute, in order to make service more affordable to lower income individuals.
01:28 CGPI CollaGenex Pharma to be acquired by Galderma for $16.60/share (12.80 )

Co announces that it has entered into a definitive merger agreement with an affiliate of Galderma Pharma SA, pursuant to which Galderma’s U.S. holding co, Galderma Laboratories, will acquire all of the outstanding shares of CollaGenex at a price of $16.60 per share in cash, representing approx $420 mln for the equity of CollaGenex.
01:25 PLXS Plexus announces financial recapitalization (22.79 )

Co announces its Board has approved a financial recapitalization under which the co plans to enter into a $150 mln long-term debt facility and initiate a share repurchase program to repurchase up to $200 mln of its common stock. PLXS anticipates that the recapitalization will be accretive to EPS for ‘08, with accretion of approx $0.01 in Q208.
01:23 HUM Humana announces intent to acquire UnitedHealth’s Medicare business in Las Vegas (69.15 )

Co announces it has signed a definitive agreement to purchase the Medicare Advantage contract and related assets associated with the Las Vegas, NV individual SecureHorizons Medicare Advantage HMO business of UnitedHealth Group (UNH). The transaction has been approved by the DoJ and is subject to regulatory approvals from the Centers for Medicare and Medicaid Services and the Nevada Division of Insurance. The transaction price of approx $185 mln in cash consideration is expected to be financed through a combination of cash and debt. Humana further commented that the transaction is not expected to significantly impact its FY08 EPS guidance.
01:20 AVT Avnet announces ratings upgraded to investment grade by Moody’s Investors Service (34.97 )

Co announces that Moody’s Investors Service raised the corporate family and senior unsecured ratings of Avnet to Baa3 from Ba1 with a stable outlook.
01:17 APL Atlas Pipeline Partners, LP reports Q4 results (43.76 )

Reports Q4 (Dec) earnings of $0.74, ex-items, $0.03 better than the First Call consensus of $0.71; revenues rose 83% year/year to $213.55 mln vs the $297.35 mln consensus.
01:10 PRPX Portec Rail Products reports Q407 in-line EPS, beats on revs (10.73 )

Reports Q4 (Dec) earnings of $0.12, in line with the single-analyst estimate of $0.12; revenues rose 9.0% year/year to $24.93 mln vs the $23.96 mln consensus.
01:04 DK Delek US Holdings misses by $0.14, misses on revs (16.71 )

Reports Q4 (Dec) loss of $0.23 per share, excluding non-recurring items, $0.14 worse than the First Call consensus of ($0.09); revenues rose 37.8% year/year to $1.12 bln vs the $1.21 bln consensus.
00:58 HRH Hilb, Rogal & Hobbs reports Q407 results, misses by $0.09, ex-items (32.62 )

Reports Q4 (Dec) earnings of $0.46, excluding the impact of one ‘07 acquisition, $0.09 worse than the First Call consensus of $0.55; revenues rose 17.3% year/year to $205.87 mln vs the $202.30 mln consensus.
00:50 WIRES On The Wires

The Ensign Group (ENSG) announces that GE Healthcare Financial Services has expanded Ensign’s existing credit facility to $50.0 mln and extended it an additional five years… Timberland Bancorp (TSBK) announces that its Board has authorized the repurchase of up to 5% of outstanding shares, or 343,468 shares.
00:48 WIRES On The Wires

SYNNEX (SNX) announces it has entered into a definitive agreement to acquire substantially all the assets of New Age Electronics, a privately held, U.S. distributor of IT and consumer electronics products to the retail sector; transaction is expected to be accretive to EPS… Genentech (DNA) announces that it has received notification from the U.S. Patent and Trademark Office that a final Office action has been issued and mailed rejecting the patentability of claims of the Cabilly patent, et al. U.S. Patent No. 6,331,415 (’415 patent)… Avistar Communications (AVSR) receives notification that Microsoft (MSFT) has filed requests for re-examination of 24 of Avistar’s 29 U.S. patents.
00:15 Citi, Merrill bond-insurer exposure risks downgrades - Bloomberg.com

Bloomberg.com reports Citigroup (C), Merrill Lynch (MER) and UBS (UBS) could face additional pressure on their credit ratings because of exposure to financial guarantors, Fitch Ratings said on Monday. “While these institutions have recently raised sizable capital, additional write-downs may put incremental pressure on their ratings when combined with other financial challenges,” Fitch wrote in an e-mailed report. “Any actual separation would likely be a difficult process with the possibility of legal challenges from counterparties, particularly from those who bought CDO protection,” Fitch wrote, referring to CDOs. “Fitch will reassess the potential implications for financial institutions when such plans progress toward reality.” U.S. banks and securities firms overall have “manageable” exposure to financial guarantors, the report said. “In the event of moderate guarantor downgrades, losses taken by financial institutions should be well contained,” Fitch wrote. “Any substantial downgrades, particularly to below investment grade, would result in significant losses not to mention potentially costly knock on effects.”