Trading for the Masses

19:13 WRAPX After Hours Summary: CRM +9.3% on earnings/guidance, TS +1.2% on earnings; F -0.8% (says credit arm will post lower profit in ‘08 vs. ‘07 — DJ) -Update-

Companies moving in after hours trading in reaction to earnings: Trading Up: CRM +9.3%; DBRN +12.7%; LSR +9.1%; FLS +9.8%; NKTR +8.4%; FIX +8.2%; VISN +7.1%; MIDD +6.6%; CTRP +6.2%; MANT +4.5%; NUVO +3.6%; AHT +3.1%; ZINC +3.1%; LTD +2.7%; GEF +2.6%; ARNA +2.2%; UHT +1.8%; TELK +1.6%; TS +1.2%; MRX +1.2%; MTZ +1.2%… Trading Down: SEED -32.9%; AIRN -17.2%; FIRE -12.1%; MYL -10.7%; DRCO -9.4%; RCKY -8.8%; ESPD -7.9%; AMSF -5.4%; GSIG -3.9%; GMR -3.0%; GMKT -2.9%; SWX -2.8%; CDR -1.7%… Companies moving in after hours trading in reaction to news: Trading Up: VRNM +17.0% (awarded U.S. Department of Energy grant to speed enzyme development for cellulosic ethanol production); IMMC +10.0% (announces FDA clearance of the CellSearch circulating tumor cell kit for monitoring patients with metastatic prostate cancer); REGN +8.5% (announces that the FDA approves co’s ARCALYST for treatment of cryopyrin-associated periodic syndromes); WPL +7.0% (has retained Merrill Lynch to review strategic alternatives; co postpones earnings release); APPX +1.9% (receives final approval for Irinotecan Hydrochloride Injection); ZGEN +1.8% (10% owner Warburg Pincus bought 243K shares at $9.02-9.73 on 2/21-2/26); SMHG +1.8% (to write down high-yield fund investment and increase loan loss reserves); DARA +1.0% (announces appointment of new director to board)… Trading Down: NGSX -33.0% (announces preliminary results from second Phase 3 clinical trial in HIV-DSP; primary and secondary endpoints do not achieve statistical significance); FIRE -12.1% (announces Wayne Jackson to step down as CEO; The board has initiated an external search process for a new CEO); DSTI -3.9% (CFO Raja Venkatesh resigns, effective March 14); SMOD -2.6% (Chief Financial Officer resigns); F -0.8% (says credit arm will post lower profit in ‘08 vs. ‘07 — DJ).
19:09 QCOM Qualcomm annonces International Trade Commission will not review administrative law judge’s initial determination in patent infringement complaint filed by Qualcomm against Nokia (43.79 +0.29) -Update-

Co announced that the International Trade Commission (ITC) will not review Administrative Law Judge Paul J. Luckern’s initial determination (ID) that Nokia’s GSM/GPRS/EDGE-only handsets (i.e., GSM/GPRS/EDGE handsets that do not also implement WCDMA) do not infringe three QCOM patents. The action relates to 2G products and is not related to Nokia’s (NOK) WCDMA or “3G” products that are at issue in other cases. Qualcomm will decide whether to appeal the ITC decision to the Court of Appeals for the Federal Circuit. Qualcomm filed a complaint against Nokia with the International Trade Commission in June 2006.
18:52 WG Willbros Group reports Q4 (37.09 +0.0

Reports Q4 (Dec) earnings of $0.16 per share, may not be comparable to the First Call consensus of $0.32; revenues rose 77.0% year/year to $337.5 mln vs the $283.1 mln consensus.
18:48 ARCI Appliance Recycling Cntrs announces Peter Hausback as Executive Vice President and CFO (6.94 +0.36)

Co announced that it has hired Peter Hausback for the newly created position of Executive Vice President and Chief Financial Officer. Hausback was most recently as Chief Financial Officer of Granite City Food & Brewery.
18:48 HT Hersha Hospitality Trust reports in-line; guides FY08 adjusted FFO’s in-line (9.14 +0.12)

Reports Q4 (Dec) earnings of $0.25 per share, in-line with the First Call consensus of $0.25; revenues rose 51.3% year/year to $61.4 mln vs the $57.2 mln consensus. Co sees FY08 adjusted funds from operations of $1.27-1.30 vs $1.30 consensus.
18:45 LHCG LHC Group reports EPS in-line, beats on revs; guides FY08 EPS below consensus, revs below consensus (21.51 +0.03)

Reports Q4 (Dec) earnings of $0.37 per share, excluding non-recurring items, in-line with the First Call consensus of $0.37; revenues rose 25.7% year/year to $81.3 mln vs the $80.3 mln consensus. Co issues downside guidance for FY08, sees EPS of $1.25-1.35 vs. $1.46 consensus; sees FY08 revs of $325-350 mln vs. $351.73 mln consensus.
18:41 PSA Public Storage beats by $0.09, beats on revs (80.48 -0.02)

Reports Q4 (Dec) funds from operations of $1.30 per share, $0.09 better than the First Call consensus of $1.21; revenues rose 7.1% year/year to $464.4 mln vs the $450.8 mln consensus.
18:25 NNN National Retail properties prices offering of convertible notes; common stock or a combination thereof at an initial conversion price of $25.42 per share (21.91 -1.11)

Co announced that it has priced its previously announced offering of convertible senior notes due 2028. The Co is selling $220 mln aggregate principal amount of notes at par with a coupon of 5.125%. The notes are convertible, subject to various conditions, into cash and at the Co’s option, cash, common stock or a combination thereof at an initial conversion price of $25.42 per share. The initial conversion price is equivalent to a conversion rate of 39.3459 shares per $1,000 principal amount of notes. Up to an additional $33 mln aggregate principal amount of notes may be issued pursuant to the underwriters’ over-allotment option within 30 days of the initial issuance of the notes. The offering is expected to close on March 4, 2008.
18:25 KVA KV Pharm reports Q3 EPS of $0.56 vs $0.33 yr ago; revs rise 38.8% to $163.7 mln (25.27 +0.27)

18:20 MTZ MasTec reports in-line; guides FY08 EPS and revs in-line; guides Q1 EPS below consensus, revs above consensus (7.98 -0.11) -Update-

Reports Q4 (Dec) earnings of $0.15 per share, in-line with the First Call consensus of $0.15; revenues rose 14.0% year/year to $273.6 mln vs the $260.2 mln consensus. Co issues in-line guidance; co sees FY08 EPS of $0.85-0.90 vs $0.86 consensus; sees $1.1-1.2 bln vs $1.1 bln consensus. Co issues downside EPS guidance; co sees Q1 EPS of $0.11-0.12 vs $0.15 consensus; sees revs of $250-260 mln vs $260.2 mln consensus. Co says, “The first quarter has historically been the Company’s softest quarter due to the slow beginning of our customers’ annual budget processes and general winter weather conditions, which prevent many activities and also reduce overall efficiency and productivity.”
18:17 DRCO Dynamics Research beats by $0.06, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY08 EPS below consensus, revs below consensus (9.43 +0.44)

Reports Q4 (Dec) earnings of $0.26 per share, $0.06 better than the First Call consensus of $0.20; revenues fell 6.3% year/year to $56.5 mln vs the $55.9 mln consensus. Co issues downside guidance for Q1, sees EPS of $0.13-0.15 vs. $0.20 consensus; sees Q1 revs of $54-56 mln vs. $58.74 mln consensus. Co issues downside guidance for FY08, sees EPS of $0.74-0.84 vs. $0.87 consensus; sees FY08 revs of $220-235 mln vs. $243.67 mln consensus.
18:08 MIDD Middleby beats by $0.08, beats on revs (64.00 +1.92)

Reports Q4 (Dec) earnings of $0.89 per share, $0.08 better than the First Call consensus of $0.81; revenues rose 48.0% year/year to $145.5 mln vs the $133.3 mln consensus.
18:07 IMMC Immunicon announces FDA clearance of the CellSearch circulating tumor cell kit for monitoring patients with metastatic prostate cancer (0.90 +0.17)

Co announced that the FDA has cleared the CellSearch Circulating Tumor Cell (CTC) Kit as an aid in the monitoring of patients with metastatic prostate cancer. A sample of the patient’s blood is processed with the CellSearch Kit using the CellTracks System to capture and count CTCs. This clearance represents another expansion to claims for the kit, which is now cleared for three of the four most prevalent cancers.
18:06 GERN Geron misses by $0.04, beats on revs (5.17 +0.02)

Reports Q4 (Dec) loss of $0.22 per share, $0.04 worse than the First Call consensus of ($0.18); revenues rose 291.7% year/year to $4.7 mln vs the $3.3 mln consensus.
18:04 CTRP Ctrip.com beats by $0.06, beats on revs (54.65 -2.73)

Reports Q4 (Dec) earnings of $0.27 per share, $0.06 better than the First Call consensus of $0.21; revenues rose 58.1% year/year to $49 mln vs the $46 mln consensus. For FY08, the Co expects to continue the year-on-year net revenue growth at a rate of ~35%. .
18:00 REGN Regeneron Pharms announces that the FDA approves co’s ARCALYST for treatment of cryopyrin-associated periodic syndromes (18.90 +0.24) -Update-

Co announced it has received marketing approval from the U.S. Food and Drug Administration (FDA) for ARCALYST (rilonacept) Injection for Subcutaneous Use, an interleukin-1 blocker, for the treatment of Cryopyrin-Associated Periodic Syndromes (CAPS), including Familial Cold Auto-inflammatory Syndrome and Muckle-Wells Syndrome (MWS) in adults and children 12 and older. ARCALYST is the only therapy approved for patients with CAPS, a group of rare, inherited, auto-inflammatory conditions characterized by life-long, recurrent symptoms of rash, fever/chills, joint pain, eye redness/pain, and fatigue.
17:41 QCOM Qualcomm: Goldman Technology Conference Summary (43.79 +0.29)

On the Delaware litigation, the co thinks they are in a good position considering the contract. They note it starts in July, but thinks it’s a 2008 event in Phase I. Phase I could bring a lot of clarity to the decision… The co sees 3 players in mobile content: web cos, network service providers and handset OEMs. QCOM comes in to have platforms that all 3 can use, citing Brew doing well in content delivery. Co says the back office capability is the positive, whereas red share tax and closeness of the platform is the negative… On handsets at mini-pc stage, the co believes the trend is going towards the pc model. They see openness in platforms winning out because it’s more scaleable with just a couple o.s.’ not multiple… On Media flow, the co says the tech works extremely well, good clarity, uptime, and audio quality. They are learning about pricing, and believe that it needs to be more value based; thinking $15 is too high. Currently the tv content is 60% live, 40% time shifted until contracts are completed with the networks. Eventually they would like to get media flow into cars. They say the inflection point for media flow will be in 2010… Other growth drivers include mobile banking (need to get all the major banks signed), adding capability for gift cards digitally on mobile, mobile coupons, and the big payoff is proximity payments.
17:35 MKTIN Market Internals -Update-

The Dow was up 0.07% at 12694, the Nasdaq was up 0.37% at 2354, and the S&P was down 0.09% to close at 1380. Leading sectors included: Tires and Rubber +3.7%, Diversified Metals and Mining +3.0%, Homebuilding +3.0%, Office Electronics +2.6%, Trucking +2.4. Lagging sectors included: Independent Power Producers and Energy Traders –3.4%, Application Software –3.2%, Casinos and Gaming –3.1%, Wireless Services –2.9%, Coal and Consumable Fuels –2.8%. Today’s movement came from lower than avg volume (NYSE 1458, vs. 1605 avg, Nasdaq 2227, vs. 2313 avg), with decliners outpacing advancers (NYSE advance/decline 1504/1802, Nasdaq 1406/1519) with new lows outpacing new highs (NYSE new high/new low 65/75; Nasdaq 65/89.
17:31 AMSF Amerisafe misses by $0.04 (14.70 +0.27)

Reports Q4 (Dec) earnings of $0.92 per share, $0.04 worse than the First Call consensus of $0.96; revenues fell 14.6% year/year to $82.4 mln vs the $84.6 mln consensus. Outlook: For the full year 2008, the Co currently expects to produce a combined ratio of 94% or lower and a return on average equity of 15% or greater.
17:23 WLL Whiting Petroleum beats by $0.09, beats on revs (60.97 +0.12)

Reports Q4 (Dec) earnings of $1.08 per share, $0.09 better than the First Call consensus of $0.99; revenues rose 24.5% year/year to $232.4 mln vs the $221.1 mln consensus.
17:21 VVC Energy Systems Group signs $5.6 mln contract with world’s largest naval station (26.49 -0.42)

Co signed their first Utility Energy Services Contract (UESC), teaming up with Virginia Natural Gas, a subsidiary of AGL Resources, at Naval Station Norfolk, the world’s largest naval station. ESG will provide lighting, water, and mechanical system upgrades and will establish the framework for decentralization of the central steam system. In compliance with current energy legislation, these projects are designed to reduce energy, improve infrastructure, and address comfort concerns expressed by Naval Station Norfolk.
17:20 FLS Flowserve beats by $0.13, beats on revs; reaffirms FY08 EPS in-line (102.50 -0.94)

Reports Q4 (Dec) earnings of $1.36 per share, excluding $0.31 gain, $0.13 better than the First Call consensus of $1.23; revenues rose 25.6% year/year to $1.11 bln vs the $1.07 bln consensus. Co reaffirms in-line guidance for FY08, sees EPS of $5.10-5.40 vs. $5.15 consensus. FLS announces share repurchase program of up to $300 mln, and raises their quarterly dividend to $0.25, up from $0.15.
17:16 CLX Clorox announces pricing of $500 mln senior notes (59.59 -0.15)

Co announced that it has priced the offering of $500 mln aggregate principal amount of its 5.00 percent senior notes due 2013 in an underwritten registered public offering. The offering was made pursuant to an effective shelf registration statement Clorox filed with the Securities and Exchange Commission on Oct. 3, 2007. The offering is expected to close on March 3, 2008, subject to customary closing conditions. Clorox intends to use the net proceeds from the offering to retire commercial paper.
17:15 FIX Comfort Sys USA misses by $0.05, reports revs in-line; increases stock repurchase program, available to purchase back up to 1,000,000 shares (11.15 -0.7

Reports Q4 (Dec) earnings of $0.21 per share, $0.05 worse than the First Call consensus of $0.26; revenues rose 9.4% year/year to $293.3 mln vs the $291.4 mln consensus. Co increases stock repurchase program, available to purchase back up to 1,000,000 shares by authorizing the Co to acquire up to 712,083 additional shares of its outstanding common stock.
17:13 UHT Universal Health reports Q4 funds from operations of $0.59 vs $0.60 yr ago; revs fell 3.9% to $6.9 mln (33.01 -1.33)

17:13 SWX Southwest Gas reports Q4 EPS of $1.00 vs $1.08 First Call consensus; revs decreased 1% YoY $560.31 mln vs $510.25 mln First Call consensus (27.44 -0.05)

Co says “Two main factors prevented us from having a record year: lost operating margin resulting from warmer-than-normal weather, and a decline in the rate of customer growth due to the downturn in the housing market.”
17:12 FIX Increases Stock Repurchase Program, available to purchase back up to 1,000,000 shares by authorizing the Co to acquire up to 712,083 additional shares of its outstanding common stock

17:10 TGI Triumph Group announces acquisition of B&R Machine and Tool, expects to be immediately accretive to earnings (56.84 -0.3

Co announces the acquisition of the assets of B&R Machine and Tool, a manufacturer of aircraft structural components and dynamic parts and assemblies for commercial and military aerospace programs. The acquired business, which will operate as Triumph Structures-Long Island and be part of Triumph Aerospace Systems Group, is expected to add ~$45 mln of revenue for fiscal year 2009 and will be immediately accretive to earnings.
17:09 SU Suncor Energy announces plans to implement a two-for-one share split of its issued and outstanding common shares (103.67 0.00)

17:09 FIX prelim $0.21 vs $0.26 First Call consensus; revs $293.3 mln vs $291.43 mln First Call consensus

17:08 FLS Announces Share Repurchase Program of up to $300 Million

17:07 WLL prelim $1.08, incl items, may not be comparable to $0.99 First Call consensus; revs $232.4 mln vs $221.07 mln First Call consensus

17:03 F Ford says credit arm will post lower profit in ‘08 vs. ‘07 - DJ (6.60 +0.0

17:02 COKE Coca-Cola Bottling reports Q4 earnings (56.50 -1.5

Co lost $1.8 million, or basic net loss per share of $.19, in the fourth quarter of 2007 compared to net income of $8.6 million, or basic net income per share of $.94, in the fourth quarter of 2006. Net income in the fourth quarter of 2006 included the favorable impact of $4.9 mln, or basic net income per share of $.54, related to reduced income tax expense resulting from the settlement of tax positions with certain states.
17:00 STNR Steiner Leisure reports EPS in-line, beats on revs (31.87 -1.00)

Reports Q4 (Dec) earnings of $0.67 per share, in-line with the First Call consensus of $0.67; revenues rose 10.8% year/year to $135.2 mln vs the $132 mln consensus.
17:00 ESPD eSpeed misses by $0.05, reports revs in-line (12.10 -0.30)

Reports Q4 (Dec) loss of $0.04 per share, $0.05 worse than the First Call consensus of $0.01; revenues fell 15.1% year/year to $38.2 mln vs the $38.5 mln consensus. The Combined Company intends to pursue accretive acquisitions and to continue to profitably increase its brokerage headcount. It also expects to increase the percentage of its revs from fully electronic trading, Software Solutions and Market Data. The Combined Company believes that these developments would have a significant positive effect on its profit margins and revenues. The outlook for the Combined Company contained in this release does not include the potentially accretive impact of any of these developments. The Combined Company is expected to generate revs of approx $315 mln in the first quarter of 2008, up 15% from approx $273 mln in the prior year period. The Combined Company expects first quarter 2008 pre-tax income to increase by over 80% when compared to the year-ago quarter to the range of $46 mln to $49 mln.
17:00 CAM Cameron: Discloses Jack Moore has been named CEO, Charles Sledge has been named CFO; Authorizes the repurchase of 10 million shares (43.65 -1.04)

16:59 STNR prelim $0.67 vs $0.67 First Call consensus; revs $135.2 mln vs $132.00 mln First Call consensus

16:58 FLS prelim $1.67, incl items, may not be comparable to $1.23 First Call consensus; revs $1.11 bln vs $1.07 bln First Call consensus

16:55 ESPD prelim ($0.04) vs $0.01 First Call consensus; revs $38.2 mln vs $38.46 mln First Call consensus

16:51 ABH AbitibiBowater Earnings Preview (16.53 -0.26)

ABH is expected to report Q4 earnings tomorrow morning before the mkt open with a conference call to follow at 10AM ET… ABH Consensus: First Call Q4 EPS of ($2.67), revs of $1.65 bln; Q1 EPS of ($1.97), revs of $1.65 bln; FY07 EPS of ($7.41), revs of $5.24 bln; FY08 EPS of ($5.19), revs of $7.02 bln… Earnings History: This is the 2nd time the merged co (Abitibi and Bowater) is reporting earnings. The first time the results had a lot of noise… Expectations: Analysts are bullish on the co despite all of the problems it faces right now. The fundamentals look good due to the rising price of newspaper print (co has also raised its newsprint prices), rising price of coated groundwood (used for commercial printing), and the global reduction of global capacities. They are bullish even though it is a tough mkt as online advertising and a slowing US economy are sharply braking newsprint demand. The red flags also include ABH’s short-term liquidity issues as the co has debt due this summer, which has pressured the stock recently, according to some. In addition, the co has postponed earnings two times which has been received with some skepticism. Some other issues include “non-competitive” shipping prices for ABH, this is more of an issue than previously because of the increased exports. Additionally, analysts will be looking for the progress in creating synergies between the two cos… Areas of Focus on the Call: 1) Financing of near-term liquidity update 2) synergies color (how synergies of Abitibi and Bowater are progressing) 3) pricing of newsprint and commercial printing papers outlook… Technical Levels of Interest: Please see the Levels of Interest. Levels (Note that the length of horizontal line correlates with strength of support or resistance level) (PVIEW)
16:47 WPL WP Stewart has retained Merrill Lynch to review strategic alternatives; co postpones earnings release (3.74 -0.07)

The co announces the Board is reviewing strategic alternatives that could better position it to enhance long-term shareholder value. As part of this effort the co retained Merrill Lynch in late 2007 as its financial advisor. The co is currently in discussions with a number of parties; however, there can be no assurances these discussions will result in a successful conclusion. In the coming months the co will focus on rationalizing its expense base to reflect current market and co-specific conditions. As a result of this review of strategic alternatives and related discussions with third parties, it has become necessary to postpone releasing the co’s 2007 fourth quarter and year-end earnings results and the conference call scheduled for February 28 2008.
16:44 GM General Motors: Cerberus seeks FDIC waiver related to GMAC bank - DJ (24.82 +0.24) -Update-

16:44 AAPL Apple at Goldman Sachs Conference (122.88 +3.73)

Says guts tell them that there is something there for Apple TV; just shipped Apple2 a few weeks ago… says Macbook Air is a new category; believes iPod touch is a new category; says that they think Apple can do anything they want to; want to stay very focused on the businesses they have and may or may not add more busnesses… says demand for iPhone that the co is not is so intense that others are shipping out the iPhones and people are using other services; believes this is a sign of strong demand; says there will always be some level of hacking however they are seeing very few people in the U.S. have brought a phone to unlock it and use another service; says of all the problems look at this one with a smile as demand is so great… States they surpassed DELL as #1 supplier for portables to education facilities in 2007… says not really worried about competition as they are confident with their products.
16:44 SEED Origin Agritech reports FY07 net loss of $21.8 mln vs net income of $7.3 mln yr ago; revs fell 6.2% to $65.2 mln (9.60 -0.24)

Origin expects to report revenues range from US$75-$80 mln and bottom line range from a net income of US$0.5 mln-2 mln, for the fiscal year ending September 30, 2008. This net income figure is inclusive of roughly US$2.7 mln dollars in expected non-cash interest expense from our convertible debt offering. Exclusive of this non-cash expense, we expect a net income range of US$3.0-4.5 mln.
16:42 GOOD Gladstone Commercial reports Q4 FFO of $0.38 vs $0.38 consensus, revs rose 7% YoY to $8.9 mln vs $9 mln two analyst est (17.61 -0.39)

16:41 SEED Origin Agritech announces it has licensed a new genetically modified corn to officially introduce the next generation of corn product into China (9.60 )

16:39 SHS Sauer Danfoss reports Q4 earnings, issues FY08 guidance (23.58 )

Co reports Q4 EPS of $0.18 vs $0.21 single analyst estimate; revs rose 23% YoY to $494.2 mln vs $451.60 mln single analyst estimate. Sees FY08 $1.40-1.55 vs $1.65 single analyst estimate; sees revs up 7-9% YoY, or roughly $2.10-2.15 bln vs $2.08 bln single analyst estimate.
16:38 TYL Tyler Tech beats by $0.01, beats on revs; guides FY08 EPS in-line, revs above consensus (13.85 -0.01)

Reports Q4 (Dec) earnings of $0.15 per share, $0.01 better than the First Call consensus of $0.14; revenues rose 18.0% year/year to $60.4 mln vs the $58.8 mln consensus. Co issues mixed guidance for FY08, sees EPS of $0.49-0.53 vs. $0.51 consensus; sees FY08 revs of $259-265 mln vs. $254.43 mln consensus.
16:37 LTD Limited beats by $0.03, reports revs in-line; guides Q1 EPS in-line; guides FY09 EPS in-line (18.46 -0.1

Reports Q4 (Jan) earnings of $0.94 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.91; revenues fell 18.6% year/year to $3.28 bln vs the $3.26 bln consensus. Co issues in-line guidance for Q1, sees EPS of 0.05-0.10 vs. $0.13 consensus. Co issues in-line guidance for FY09, sees EPS of 1.35-1.55 vs. $1.49 consensus.
16:36 BEE Strategic Hotels & Resorts beats by $0.02, reports revs in-line; guides Q1 FFO in-line (15.83 +0.05)

Reports Q4 (Dec) funds from operations of $0.43 per share, $0.02 better than the First Call consensus of $0.41; revenues rose 10.9% year/year to $268.7 mln vs the $266.3 mln consensus. Co issues in-line guidance for Q1, sees FFO of $0.30-0.34 vs. $0.33 consensus. The co expects 1Q08 North American Total RevPAR growth to be in the range of 0.5%-1.5%, and first quarter 2008 RevPAR growth to be in the range of 1.5%-2.5%.
16:36 SMHG Sanders Morris Harris to write down high-yield fund investment and increase loan loss reserves (9.21 -0.54)

The co announces that it will write down the value of its high-yield hedge fund investment and increase loan reserves by approximately $5 million in the fourth quarter of 2007. The write downs stems from price declines in the bonds held by a high-yield hedge fund in which the co owns an interest and the loan loss reserves relate to investment banking-related loan commitments. By contrast, the 2007 pretax earnings of the co’s core asset/wealth mgmt businesses rose approximately 93% when compared to the prior year, subject to final audit confirmation. The co said it believes the credit quality of the vast majority of the high-yield fund’s underlying bonds is sound, and that their prices should improve to reflect that credit worthiness as debt mkts improve. “Our high-yield department has had an exemplary record over the years. Its credit selection discipline is well tested and we are comfortable with the future results of the fund. However, the turmoil in the debt markets has hurt all the participants in it,” said Ben Morris, CEO.
16:35 TYL sees FY08 $0.49-0.53 vs $0.51 First Call consensus; sees revs $259-265 mln vs $254.43 mln First Call consensus

16:35 TYL prelim $0.15 vs $0.14 First Call consensus; revs $60.4 mln vs $58.83 mln First Call consensus

16:35 DAR Darling International Inc beats by a penny; slightly misses on revs (13.55 -0.09)

Reports Q4 (Dec) earnings of $0.18 per share, $0.01 better than the First Call consensus of $0.17; revenues rose 37% year/year to $175.4 mln vs the $176.52 mln consensus.
16:35 PMII Power Medical Interventions misses by $0.60; guides FY08 revs in-line (13.81 +0.30)

Reports Q4 (Dec) ($1.21) $0.60 worse than the First Call consensus of ($0.61); revenues rose 5.6% year/year to $1.9 mln vs the $2.4 mln consensus. Co sees FY08 revs of $29-33 mln vs $30.0 mln consensus; co anticipates a loss from operations in 2008 of $23-25 mln. Co says, “a significant portion of the revenue growth is expected in the third and fourth quarters of 2008, as the company places more instruments with hospital accounts and reload firings increase.”
16:34 VISN VisionChina Media reports Q4 EPS of $0.10, ex-items, vs $0.07 in last qtr; revs up 495.2% yr/yr to $12.0 mln with no estimates (9.24 +0.09)

Co sees Q1 revs of $12.5-13.5 mln. Co sees Y08 revs of $90-94 mln.
16:33 ZGEN Zymogenetics: 10% owner Warburg Pincus bought 243K shares at $9.02-9.73 on 2/21-2/26 (9.75 -0.43)

16:33 LTD sees FY09 $1.35-1.55 vs $1.49 First Call consensus

16:33 LTD sees Q1 $0.05-0.10 vs $0.13 First Call consensus

16:32 House votes to repeal oil tax breaks, finance renewables - DJ

DJ reports the U.S. House of Representatives voted to repeal $18 bln of tax breaks for oil and gas producers and use the savings to finance tax incentives for wind-power projects, solar panels, and more energy-efficient cars. The bill passed by 236-182, but faces long odds amid opposition in the Senate and a White House veto threat. But it allowed House Democrats to promote renewable energy as an alternative to high-priced oil and to take aim at the oil industry, which is in the midst of a profit boom as prices keep rising. “We have the opportunity to invest in clean, renewable energy and energy efficiency and grow our economy, creating new jobs,” said House Speaker Nancy Pelosi, D-Calif.
16:32 LSR Life Sciences Research reports Q4 EPS of $0.63 vs $0.44 single analyst est, revs rose 20.9% YoY to $63.4 mln vs $62.42 mln single analyst est (23.00 -0.20)

16:32 LTD prelim $0.94 vs $0.91 First Call consensus; revs $3.28 bln vs $3.26 bln First Call consensus

16:31 DAR prelim $0.18 vs $0.17 First Call consensus; revs $175.4 mln vs $176.52 mln First Call consensus

16:30 GM General Motors to idle a plant Thursday due to Amer. Axle strike, source says - DJ (24.82 +0.24) -Update-

(AXL)
16:28 APPX APP Pharma receives final approval for Irinotecan Hydrochloride Injection (11.72 -0.07)

Co announces that it has received approval from the U.S. Food and Drug Administration of its Abbreviated New Drug Application for Irinotecan Hydrochloride Injection, 40 mg/2mL and 100mg/5mL, the generic equivalent of Camptosar Injection manufactured by Pfizer (PFE). Co has immediately commenced marketing and shipping the product. APPX’s irinotecan is AP-rated, bar-coded and latex-free. Sales of Camptosar in the United States were ~$556 mln in 2007.
16:28 NKTR Nektar Therapeutics reports Q4 (Dec) results, beats on revs (6.46 -0.26)

Reports Q4 (Dec) earnings of $0.42 per share, includes multiple gains, charges, may not be comparable to the First Call consensus of ($0.23); revenues fell 5.9% year/year to $65.8 mln vs the $42.9 mln consensus.
16:26 OSIP OSI Pharm seeks to strengthen Tarceva patent by filing re-issue application with the U.S. Patent and Trademark Office (37.81 +1.61)

Co announces that it has filed with the U.S. Patent and Trademark Office an application to reissue its composition of matter patent for Tarceva, U.S. Patent No. 5747498 in order to correct certain errors relating to the claiming of compounds, other than Tarceva, which fall outside of the scope of the main claim in the patent. OSIP’s reissue application seeks to correct these errors by deleting surplus compounds from the claims. Tarceva itself is accurately described in the patent. While the reissue application is pending, the patent remains listed in the Orange Book with the FDA and enforceable against any infringer.
16:26 NKTR prelim $0.42 may not be comparable to ($0.23) First Call consensus; revs $65.8 mln vs $42.89 mln First Call consensus

16:25 TECHX Equity markets finish mixed as Dow Industrials & Nasdaq Comp notch gains for the fourth consecutive session

The broad averages finished today’s session mixed as traders & investors digested myriad economic data & commentary. Jan. Durable Goods Orders came in below analysts forecasts @ -5.3% vs. -4.0% while Jan. News Home Sales were also lighter than forecast, coming in @ 580,000 vs. an expected 600,00. The headline economic event of the day was the start of Fed President Bernanke’s 2-day testimony to Congress on Capitol Hill. He touched on the hot topic of inflation saying upside risks to inflation greater than month ago but that expectations are ‘well anchored’. All of the major indices put in another higher low & higher high on the daily charts except for the Nasdaq 100 (NDX) which failed to breach yesterday’s 1763.40 intraday high. With more testimony scheduled tomorrow, unofficially, the INDU settled @ 12694.30 +9.35 or +0.05%, SPX @ 1380.00 -1.25 or -0.10%, COMPQ @ 2353.80 +8.80 or +0.35%, NDX @ 1799.95 +8.65 or +0.45%, & RUT @ 716.45 -0.90 or -0.10%. Sector strength in today’s session was noticeable in base Metals (DBB +3.65%), Semis (XSD +1.45%, SMH +1.2%), Broker/Dealers (IAI +0.90%), select Financials (IYF +0.50%, IYG +0.85%), & select Technology (QQQQ +0.50%). Sector weakness today was evident in select Utilities (-2.4%), Transportation (IYT -1.75%), select Commodities (GSG -1.7%, MOO -1.55%), Clean Energy (PBW -1.7%), and select Energy (USO -1.45%, OIH -1.4%).
16:25 GMR General Maritime misses by $0.03, reports revs in-line (24.54 -1.02)

Reports Q4 (Dec) earnings of $0.31 per share, $0.03 worse than the First Call consensus of $0.34; revenues rose 4.4% year/year to $55 mln vs the $54.9 mln consensus.
16:24 ATHX Athersys announces summary results for Phase 1 safety study of its novel obesity drug; ATHX-105 exhibits safety and tolerability (3.75 0.00)

Co announces top-line results from its Phase 1 clinical trial of ATHX-105, its orally administered drug candidate for the treatment of obesity. ATHX-105 was well-absorbed, providing good drug exposures, well-tolerated up to high doses, and had no negative effect on cardiovascular, hematology or other clinical parameters.
16:23 CDR Cedar Shopping Centers beats by $0.01, beats on revs; guides FY08 FFO in-line (11.90 +0.31)

Reports Q4 (Dec) funds from operations of $0.34 per share, $0.01 better than the First Call consensus of $0.33; revenues rose 26.8% year/year to $43 mln vs the $39.7 mln consensus. Co issues in-line guidance for FY08, sees FFO of $1.22-1.26 vs. $1.26 consensus. “The Co’s guidance excludes any impact on FFO from new or future development / redevelopment activities, any new acquisitions, dispositions, or from new joint venture arrangements of existing properties. The guidance anticipates throughout 2008 continuing stability in its tenant base, same store revenue growth of 1.4%, no significant change in the number of shares of common stock outstanding, an average 30-day LIBOR rate of 5.4%, and a net charge to FFO of $0.05 per share/OP Unit from the Homburg Invest Inc. joint venture.”
16:23 AHT Ashford Hospitality Trust reports EPS in-line, beats on revs (6.40 -0.10)

Reports Q4 (Dec) funds from operations of $0.30 per share, excluding non-recurring items, in-line with the First Call consensus of $0.30; revenues rose 144.6% year/year to $345.1 mln vs the $321.4 mln consensus.
16:22 GMR prelim $0.31 vs $0.34 First Call consensus; revs $54.97 mln vs $54.88 mln First Call consensus

16:22 GSIG GSI Group misses by $0.04, beats on revs; guides Q1 revs in-line (8.32 +0.01)

Reports Q4 (Dec) earnings of $0.11 per share, $0.04 worse than the 2 estimate consensus of $0.15; revenues rose 3.0% year/year to $86.5 mln vs the $81 mln single estimate. Co issues guidance for Q1, sees EPS of $0.02-0.06, includes charges, may not be comparable to $0.13 singel estimate; sees Q1 revs of $66-72 mln vs. $70.00 mln estimate.
16:22 AHT prelim funds from operations of $0.30 vs $0.30 First Call consensus; revs $345.1 mln vs $321.38 mln First Call consensus

16:21 EGLE Eagle Bulk Shipping reports EPS in-line, revs in-line (27.80 +0.57)

Reports Q4 (Dec) earnings of $0.35 per share, in-line with the First Call consensus of $0.35; revenues rose 25.4% year/year to $35.6 mln vs the $35.4 mln consensus.
16:20 FRX Forest Labs announces amendment to Bystolic Agreement; announces FRX will commercialize, develop and distribute Bystolic (42.52 +0.40)

The co announces that it and MYL have amended their January 2006 agreement to commercialize, develop and distribute the novel beta blocker Bystolic, which is currently approved in the United States for the treatment of hypertension. The cos have agreed that Forest will assume Mylan’s commercial rights for Bystolic in the United States and Canada including, but not limited to, the elimination of Mylan’s option to co-promote the product. Forest will be responsible for all future Bystolic development expenses as well as all sales and marketing expenses for the product. Under the terms of this amendment, Forest Laboratories Holdings will make a one-time cash payment of $370 million to Mylan. Forest will continue to pay Mylan its contractual royalties for three years, through calendar 2010, after which Forest will pay an amount consistent with the royalty rates Forest generally pays with respect to its principal products for the supply of active pharmaceutical ingredient. Beginning in the first quarter of calendar 2011 Forest will amortize the one-time cash payment over the remaining patent life of the product.
16:20 MDR McDermott beats by $0.05, beats on revs (53.00 +0.22)

Reports Q4 (Dec) earnings of $0.70 per share, $0.05 better than the First Call consensus of $0.65; revenues rose 16.7% year/year to $1.53 bln vs the $1.45 bln consensus.
16:18 MYL Mylan Labs reports Q4 (Dec) results, beats on revs (13.12 -0.15)

Reports Q4 (Dec) adjusted cash earnings of $0.11 per share, may not be comparable to the First Call consensus of ($0.05); revenues rose 187.5% year/year to $1.16 bln vs the $1.08 bln consensus. Co confirmes it expects to realize its stated $100 mln synergy target for the Merck Generics acquisition in 2008 and it is on track to meet or exceed the targeted recurring annual synergies of $300 mln by the end of 2010.
16:18 GEF Greif Brothers beats by $0.06, misses on revs; reaffirms FY08 EPS guidance (64.33 -1.42)

Reports Q1 (Jan) earnings of $0.81 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.75; revenues rose 12.7% year/year to $846.3 mln vs the $940.7 mln consensus. Co reaffirms guidance for FY08, sees EPS of $3.80-4.00, excluding non-recurring items, vs. $3.97 consensus.
16:18 CDR reaffirms FY08 funds from operations of $1.22-1.26 vs $1.26 First Call consensus

16:17 MRX Medicis beats by $0.11, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY08 EPS in-line, revs above consensus (19.77 -0.33)

Reports Q4 (Dec) earnings of $0.54 per share, $0.11 better than the First Call consensus of $0.43; revenues rose 41.6% year/year to $140.3 mln vs the $129.5 mln consensus. Co issues mixed guidance for Q1, sees EPS of $0.32-0.35 vs. $0.38 consensus; sees Q1 revs of $130-133 mln vs. $128.05 mln consensus. Co issues mixed guidance for FY08, sees EPS of $1.43-1.56 vs. $1.54 consensus; sees FY08 revs of $528-540 mln vs. $524.53 mln consensus.
16:17 CDR prelim funds from operations of $0.34 vs $0.33 First Call consensus; revs $43 mln vs $39.71 mln First Call consensus

16:17 DARA DARA BioSciences announces appointment of new director to board (4.90 +0.95)

Co announces the appointment of Haywood Cochrane to the Board of Directors effective February 21, 2008. Cochrane was appointed to fill a Board vacancy and will serve on the co’s Audit and Compensation Committees. Cochrane is currently Vice Chairman and a Director of I-trax (DMX).
16:16 MNI McClatchy reports 2008 January revenues (10.12 -0.25)

The co reports that consolidated revenues in January 2008 decreased 14.4% and advertising revenues were down 15.7% compared to revenues in January 2007.
16:16 MYL prelim $0.11 may not compare to ($0.05) First Call consensus; revs $1.16 bln vs $1.08 bln First Call consensus

16:15 EGLE prelim $0.35 vs $0.35 First Call consensus; revs $36 mln vs $35.40 mln First Call consensus

16:15 MDR prelim $0.70 vs $0.65 First Call consensus; revs $1.53 bln vs $1.45 bln First Call consensus

16:15 RCKY Rocky Brands misses by $0.22, misses on revs (6.20 +0.11)

Reports Q4 (Dec) loss of $0.02 per share, excluding non-recurring items, $0.22 worse than the First Call consensus of $0.20; revenues rose 2.7% year/year to $72.5 mln vs the $77.3 mln consensus.
16:15 NUVO Nuvelo beats by $0.05, misses on revs (1.71 +0.04)

Reports Q4 (Dec) loss of $0.22 per share, $0.05 better than the First Call consensus of ($0.27); revenues fell 93.1% year/year to $0.1 mln vs the $0.1 mln consensus.
16:14 MDR McDermott CEO Bruce Wilkinson announces that he will retire in 2008 (51.73 +0.22)

16:14 PHMD PhotoMedex reports Q4 EPS of $0.02 vs loss of ($0.01) a year ago qtr; revs rose 33% YoY to $11.4 mln (1.08 +0.00)

16:14 GSIG sees Q1 $0.02-0.06 vs $0.13 single analyst est; sees revs $66-72 mln vs $70.00 mln single analyst est

16:14 SDBT SoundBite Communications reports Q4 results; guides Q1 and FY08 (5.05 -0.04) -Update-

Co reports Q4 EPS of $0.04 vs $0.00 First Call consensus; revs $11.3 mln vs $10.75 mln First Call consensus. Co sees Q1 revs $10.7-11 mln vs $10.45 mln First Call consensus. sees FY08 revs $53.3-55.3 mln vs $52.28 mln First Call consensus
16:14 AKRX Akorn initiated with an Outperform at Credit Suisse; tgt $10 - Bloomberg (6.58 -0.26)

16:13 TS Tenaris beats by $0.21, beats on revs (44.00 +0.24)

Reports Q4 (Dec) earnings of $0.93 per share, $0.21 better than the First Call consensus of $0.72; revenues rose 6.8% year/year to $2.63 bln vs the $2.59 bln consensus. Co states. “We expect our sales to increase in 2008, led by higher sales of specialized, high-end OCTG products, and that the increase in sales should result in higher operating and net income. However, increased volatility in economic conditions and raw material and commodity prices could affect market conditions for our products and services and, consequently, our results for the
second half of the year.”
16:13 GSIG prelim $0.11 vs $0.15 two analyst est; revs $86.5 mln vs $81.00 mln single analyst est

16:12 DBRN Dress Barn beats by $0.03, reports revs in-line; reaffirms FY08 EPS above consensus (12.56 -0.34)

Reports Q2 (Jan) earnings of $0.09 per share, excluding $0.03 benefit, $0.03 better than the First Call consensus of $0.06; revenues rose 1.6% year/year to $345.6 mln vs the $343 mln consensus. Co reaffirms upside guidance for FY08, sees EPS of $1.05-1.10 vs. $1.02 consensus.
16:12 SDBT sees FY08 revs $53.3-55.3 mln vs $52.28 mln First Call consensus

16:11 DAVE Famous Dave’s reports EPS in-line, beats on revs; lowers new store opening guidance (10.98 +0.91)

Reports Q4 (Dec) earnings of $0.06 per share, excluding non-recurring items, in-line with the First Call consensus of $0.06; revenues rose 12.2% year/year to $31.4 mln vs the $30.1 mln consensus. Co said, “Given the longer development timelines we are seeing across the country, and the current softness in the economy, we are tempering our guidance on new restaurant openings for 2008 to a range of 20 to 25 total restaurants, from a previous range of 25 to 30 locations, with up to 6 of the expected openings to be company-owned restaurants”.
16:11 ZINC Horsehead Holding reports Q4 EPS of $0.55, ex items, vs $0.46 First Call consensus; revs rose 10% YoY to $119.2 mln vs $117.28 mln First Call consensus (16.97 +0.7

“Our capacity expansion projects continue to be on schedule. The Rockwood, Tennessee waelz kiln, which we brought on-line at the beginning of 2008, is expected to ramp up during the first quarter. Engineering, site selection and incentive negotiations are underway for a new EAF dust processing facility in the Carolinas. This, along with other projects, will enable us to use more low-cost feed for zinc production. We also expect to bring 10,000 additional tons of zinc oxide capacity on-line during the second quarter of 2008… We have hedged 90,000 tons of zinc for 2008, representing approximately 60% of our expected zinc production, through the purchase of put options with a strike price of $1.00 per pound. In the event of a decline in zinc prices, we expect these hedges to help ensure an adequate level of cash flow from operations. We have also hedged 45,000 tons of zinc for 2009 thus far, through the purchase of put options with a strike price of $0.90 per pound. These hedges will allow us to participate in any increase in the price of zinc while protecting us if the zinc price declines below the strike prices.”
16:11 FIRE Sourcefire misses by $0.04, misses on revs; issues Q1 guidance (6.52 +0.05)

Reports Q4 (Dec) earnings of $0.10 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of $0.14; revenues rose 20.6% year/year to $19.3 mln vs the $20 mln consensus. Co issues guidance for Q1, sees EPS of ($0.14)-($0.11), includes stock based compensation, may not be comparable to ($0.03) consensus; sees Q1 revs of $12-12.5 mln vs $12.77 mln consensus.
16:11 CWT California Water reports Q4 EPS of $0.39 vs $0.33 consensus, revs rose 6.5% YoY to $85.9 mln vs $86.15 mln consensus (36.64 -0.1

16:11 SDBT sees Q1 revs $10.7-11 mln vs $10.45 mln First Call consensus

16:11 XETA Xeta Tech reports Q4 results; reaffirms 2Q08 and FY08 EPS guidance (4.25 +0.00)

Reports Q4 (Dec) EPS of $0.04 per share (no est); vs $0.02 a year ago; revenues rose 11% year/year to $17.9 mln. Co reaffirms its Q2 EPS of $0.03-$0.05 (no est) and its FY08 guidance of EPS of $0.22-$0.28.
16:10 GEF sees FY08 $3.80-4.00, excluding $0.35 gain, vs $3.97 First Call consensus

16:10 SDBT prelim $0.04 vs $0.00 First Call consensus; revs $11.3 mln vs $10.75 mln First Call consensus

16:09 FIRE sees Q1 ($0.14-0.11) may not compare to ($0.03) First Call consensus; sees revs $12-12.5 mln vs $12.77 mln First Call consensus

16:09 CRM Salesforce.com beats by $0.02, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY09 EPS in-line, revs above consensus (52.62 -0.14)

Reports Q4 (Jan) earnings of $0.06 per share, $0.02 better than the First Call consensus of $0.04; revenues rose 50.4% year/year to $216.9 mln vs the $209.2 mln consensus. Co issues mixed guidance for Q1, sees EPS of $0.06-0.07 vs. $0.06 consensus; sees Q1 revs of $233-235 mln vs. $228.54 mln consensus. Co issues mixed guidance for FY09, sees EPS of $0.32-0.33 vs. $0.33 consensus; sees FY09 revs of $1.030-1.035 bln vs. $1.03 bln consensus.
16:09 GEF prelim $1.16, excl items, may not be comparable to $0.75 First Call consensus; revs $846.3 mln vs $940.66 mln First Call consensus

16:09 FIRE prelim $0.10 vs $0.14 First Call consensus; revs $19.3 mln vs $20.00 mln First Call consensus

16:09 TKC prelim revs $1.81 bln vs $1.76 bln First Call consensus

16:09 MRX sees FY08 $1.43-1.56 vs $1.54 First Call consensus; sees revs $528-540 mln vs $524.53 mln First Call consensus

16:09 MRX sees Q1 $0.32-0.35 vs $0.38 First Call consensus; sees revs $130-133 mln vs $128.05 mln First Call consensus

16:08 FIRE Sourcefire announces Wayne Jackson to step down as CEO; The board has initiated an external search process for a new CEO (6.54 +0.07)

16:08 WJCI WJ Comms reports Q4 EPS of ($0.01) vs ($0.02) First Call consensus; revs $10.6 mln vs $11.00 mln First Call consensus (0.74 -0.01)

16:08 NGSX Neurogesx announces preliminary results from second Phase 3 clinical trial in HIV-DSP; primary and secondary endpoints do not achieve statistical significance (5.97 -0.11)

Co announces preliminary top-line results from study C119, its second Phase 3 clinical trial of NGX-4010, the co’s dermal patch drug candidate, in patients with HIV-distal sensory polyneuropathy. The prespecified analysis of the primary endpoint, comparing all patients treated with NGX-4010 compared to all patients treated with the control patch, did not meet statistical significance with the overall NGX-4010 treatment group achieving a 29.5% reduction in pain from baseline over weeks 2-12 compared to a 24.6% reduction for the control group. The results were confounded by a much higher than anticipated control group response overall and, in particular, in the 60-minute control arm. NeurogesX intends to enter into commercial partnerships for marketing and distribution outside the United States. Co expects to submit an NDA with the FDA in the second half of 2008 for PHN and will discuss with the agency the path forward for attaining approval for HIV- DSP.
16:08 MRX prelim $0.54, ex items vs $0.43 First Call consensus; revs $140.3 mln vs $129.51 mln First Call consensus

16:07 MANT ManTech beats by $0.03, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY08 EPS in-line, revs in-line (44.97 +0.61)

Reports Q4 (Dec) earnings of $0.61 per share, $0.03 better than the First Call consensus of $0.58; revenues rose 45.1% year/year to $421.8 mln vs the $410.9 mln consensus. Co issues upside guidance for Q1, sees EPS of $0.56-0.59 vs. $0.53 consensus; sees Q1 revs of $425-435 mln vs. $400.57 mln consensus. Co issues in-line guidance for FY08, sees EPS of $2.34-2.46 vs. $2.37 consensus; sees FY08 revs of 1.725-1.785 bln vs. $1.75 bln consensus. ManTech’s first quarter 2008 revenue guidance represents total revenue growth of 44% to 48% and pro forma organic revenue growth of 19% to 22%. ManTech’s 2008 full year revenue guidance represents total revenue growth of 19% to 23% and pro forma organic revenue growth of 10% to 13% without any future acquisitions.
16:07 SDBT SoundBite Communications acquires Mobile Collect for approx $500k plus additional contingent consideration of up to $2 million (5.05 -0.04)

16:07 ARNA Arena Pharm beats by $0.18, misses on revs (6.93 -0.04)

Reports Q4 (Dec) loss of $0.60 per share, $0.18 better than the First Call consensus of ($0.78); revenues fell 2.1% year/year to $4.6 mln vs the $4.8 mln consensus. Co expects to use cash, cash equivalents and short-term investments of approx $190-210 mln for its operating activities in 2008 and approx $38-44 mln for capital expenditures.
16:06 DSTI DayStar Technologies CFO Raja Venkatesh resigns, effective March 14 (3.60 +0.01)

Chris Lail, DayStar’s controller, will serve in the interim while the company completes its search for a new CFO.
16:06 CRM sees FY09 $0.32-0.33 vs $0.33 First Call consensus; sees revs $1.030-1.035 bln vs $1.03 bln First Call consensus

16:06 STAK Staktek Holdings misses by $0.01, misses on revs; guides for Q1 (1.55 +0.01)

Reports Q4 (Dec) loss of $0.02 per share, excluding non-recurring items, $0.01 worse than the single estimate of ($0.01); revenues fell 7.1% year/year to $13 mln vs the $13.7 mln single estimate. Co sees Q1 EPS of $8-10 mln, no estimates
16:06 DAVE prelim $0.06 vs $0.06 First Call consensus; revs $31.4 mln vs $30.10 mln First Call consensus

16:06 WSII Waste Services reports Q4 revs of $130.1 mln vs $124.6 mln consensus;sees FY08 EPS of $0.30-0.35, which may not be comparable to the $0.28 consensus, sees FY08 revs of $480-500 mln, which may not be comparable to the $531 mln two analyst est (8.68 -0.15)

16:06 SMOD Smart Modular Tech Chief Financial Officer resigns (7.17 -0.10)

Co announces that its Senior Vice President and Chief Financial Officer, Jack Pacheco, will leave effective April 18, 2008, to take a position with a privately held company in a different industry. The co expects to retain an executive search firm to identify a successor to Pacheco. MacKenzie will serve as acting CFO on an interim basis until a well-qualified replacement is appointed.
16:06 CRM sees Q1 $0.06-0.07 vs $0.06 First Call consensus; sees revs $233-235 mln vs $228.54 mln First Call consensus

16:06 TELK Telik reports Q4 EPS of ($0.25) vs ($0.24) First Call consensus (2.64 -0.16)

Co also announces its financial guidance for 2008. Telik is forecasting total operating expenses of approx $52 mln, which includes approx $8.5 mln in stock-based compensation expense. This represents a decrease of approx $8 mln in operating expenses as compared with the year ended December 31, 2007, and reflects the co’s focus on the Phase 2 clinical trials of TELINTRA Tablets, preclinical studies on TLK58747 and reduced development of TELCYTA. The stock-based compensation expense estimate is dependent on market price assumptions used in estimating the fair value and the levels of share-based payments. Telik is forecasting net cash utilization in 2008 of approx $45 mln.
16:05 AIRN Airspan Networks misses by $0.06, reports revs in-line; guides Q1 revs in-line (1.42 +0.01)

Reports Q4 (Dec) loss of $0.14 per share, $0.06 worse than the First Call consensus of ($0.08); revenues rose 5.8% year/year to $23.8 mln vs the $23.9 mln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $20-21 vs. $25.46 mln consensus. “Our WiMAX revenue was up 40% in 2007 over 2006. As a result, today Airspan is the leading U.S. based pure-play WiMAX equipment supplier and our market share position has been recognized by leading market research analysts like Maravedis… The telecom equipment sector traditionally experiences seasonality with a lighter first quarter than the previous year’s fourth quarter and we are anticipating that same trend for our business.
16:05 TS prelim $0.93 vs $0.72 First Call consensus; revs $2.63 bln vs $2.59 bln First Call consensus

16:05 CRM prelim $0.06 vs $0.04 First Call consensus; revs $216.9 mln vs $209.19 mln First Call consensus

16:04 BAGL Einstein Noah reports Q4 (Dec) results, beats on revs (16.40 +0.79)

Reports Q4 (Dec) earnings of $0.41 per share, includes multiple items, may not be comparable to the First Call consensus of $0.44; revenues rose 6.1% year/year to $105.2 mln vs the $103.8 mln consensus.
16:04 MANT sees FY08 $2.34-2.46 vs $2.37 First Call consensus; sees revs $1.725-1.785 bln vs $1.75 bln First Call consensus

16:04 CFI prelim $0.11, ex-items, vs $0.09 First Call consensus; revs $60.5 mln vs $56.78 mln First Call consensus

16:03 ARNA prelim ($0.60) vs ($0.7 First Call consensus; revs $4.6 mln vs $4.77 mln First Call consensus

16:03 MANT sees Q1 $0.56-0.59 vs $0.53 First Call consensus; sees revs $425-435 mln vs $400.57 mln First Call consensus

16:03 NWK Network Equip announces $20 million stock buyback program (6.24 -0.20)

16:03 DBRN reaffirms FY08 $1.05-1.10 vs $1.02 First Call consensus

16:03 DR prelim $0.64 vs $0.46 First Call consensus

16:03 GMKT GMarket beats by $0.03, misses on revs (22.85 -0.14)

Reports Q4 (Dec) earnings of $0.26 per share, $0.03 better than the First Call consensus of $0.23; revenues rose 39.2% year/year to $71.8 mln vs the $72.8 mln consensus.
16:03 STAK sees Q1 revs $8-10 mln

16:02 NUVO prelim ($0.22) vs ($0.27) First Call consensus; revs $0.1 mln vs $0.08 mln First Call consensus

16:02 MANT prelim $0.61 vs $0.58 First Call consensus; revs $422 mln vs $410.93 mln First Call consensus; this is in-line with their recent pre-announcement

16:02 DBRN prelim $0.09 vs $0.06 First Call consensus; revs $345.6 mln vs $343.02 mln First Call consensus

16:02 ACAS American Capital arranges $75 mln in recapitalization and add-on acquisition financing for portfolio company Tanenbaum-Harber (37.84 +1.12)

Co announces that in December 2007 it arranged the $75 million recapitalization of its portfolio company Tanenbaum-Harber Holdings, an insurance brokerage and risk management consulting firm. The recapitalization supports the refinancing of a portion of Tanenbaum-Harber’s existing debt as well as TH’s second add-on acquisition. American Capital’s investment takes the form of a revolving credit facility, term loan and preferred and common equity.
16:02 STAK prelim ($0.02) ex items note comparable to ($0.01) single analyst est; revs $13 mln vs $13.70 mln single analyst est

16:01 AIRN sees Q1 revs $20-21 mln vs $25.46 mln First Call consensus

16:01 AIRN prelim ($0.14) vs ($0.0 First Call consensus; revs $23.8 mln vs $23.85 mln First Call consensus

16:01 RCKY prelim ($0.02), may not be comparable to $0.20 First Call consensus; revs $72.5 mln vs $77.27 mln First Call consensus

16:00 AVID Avid Tech announces authorization of additional funds for stock repurchase program of $100 mln (24.60 +0.94)

16:00 GMKT prelim $0.26 vs $0.23 First Call consensus; revs $71.8 mln vs $72.84 mln First Call consensus

16:00 VRNM Verenium awarded U.S. Department of Energy grant to speed enzyme development for cellulosic ethanol production (9.30 +0.07)

The co announces that it has been awarded one of four grants from the U.S. Department of Energy under a $33.8 mln program announced yesterday for the development of improved enzyme systems to be used in converting biomass into clean, renewable cellulosic ethanol. The grants will be appropriated over a four-year period beginning now through 2011.
16:00 BAGL prelim $0.41 vs $0.44 First Call consensus; revs $105.2 mln vs $103.81 mln First Call consensus

Flying fast but catching some flowers as it appears still. The volatility has disappeared like Ron Paul in the 08 election. Not much to see out here since heli Ben finished his bs. Back to the grind here, we still believe short up to 1417 is the right side to be on as that is the 50% retrace area. All time highs in gold, oil, and euro, while the dollar continues to all time lows. Party Ben Mix continues. No inflation according to him and the dollar is worth less every single day as we sit @ 74.18, only Ron Paul asked the tough questions in front of congress today, still no one listens.

Born Ruffians show the hummingbird

Same old same old for this market. We are chopping around and grinding higher as the fed continues to interject in what seems like a weekly event. Today we await “testimony”, whatever that all means, in the mean time the market pauses and waits for its bearded friend.

09:48 Monolithic Power (MPWR) and ON Semi (ONNN) reinitiated before the open at Wedbush

Before the open, Wedbush reinitiated MPWR and maintained their Strong Buy rating, but lowered their tgt to $22 from $28. Firm also reinitiated ONNN and maintained their Buy rating, and lowered thier tgt to $9 from $13.
09:47 MSCC Microsemi: Honeywell CEO recaps analyst day, India and China continue to grow and expand; positive for MSCC - Morgan Keegan (22.09 -0.56) -Update-

Morgan Keegan notes that yesterday morning, Honeywell’s (HON) CEO was on CNBC recapping their analyst day. They note the CEO indicated that they currently have a 6 yr backlog for plane parts. HON’s CEO also mentioned that as India and China continue to grow and expand, that they could contribute up to $5 bln dollars in parts alone. They say Eastern Europe is expected to be a significant contributor as they begin to refresh and expand their current air fleet. Over the next several yrs, they say China has plans to build 50 new airports and retro fit most of their air fleet. The firm views this as positive for MSCC who derives roughly 20% from commercial/air and 32% from defense. They feel that shares of MSCC are attractive trading at a current valuation of 14.0x their Sept 2009 estimate $1.62.
09:46 JEF Jefferies Group pops to session highs; strength attributed to takeover rumor (19.04 +0.42) -Update-

09:46 GOOG Google vacillating near yesterday’s gap down high at 466.47 after minor penetration (466.53 +2.34) -Update- -Technical-

09:44 MA MasterCard slides lower off the open as it comes into its Feb low near 190.00 (191.04 -4.79) -Technical-

09:42 TECHX Seeing Relative Strength in Housing as the XHB rebounds into positive territory -Update- -Technical-

PHM, KBH, HOV, CTX, TOL, LEN, MTH, SPF, DHI, RYL, BZH.
09:42 GOOG Google pushes to early morning highs as it comes into yesterday’s gap down high near 466.47 (465.75 +1.19) -Technical-

09:42 ECONX Reminder: January New Home Sales due out in about 18 min at 10:00ET

09:41 GPS Gap Inc: Upward potential for margins and sales could propel company to exceed EPS estimate - C.L. King (20.21 -0.06)

C.L. King notes that GPS reports 4Q07 earnings on Thursday, Feb 28, after the market close. Firm anticipates EPS of $0.35 vs. consensus of $0.34, and guidance of $0.33-$0.35. Firm projects FY08 comps will be up 1% vs. a four-year cumulative comp store sales decline of 16%. Firm expects traffic declines to moderate and turn positive at some point during the year, and continues to believe the predominance of the traffic declines are markdown customers making less frequent store visits as markdown inventory levels continue to decline. Also, firm continues to believe the upward potential for margins and sales could propel the stock to outperform their EPS estimates and mgmt guidance when issued for FY08.
09:39 CEF Central Fund of Canada reported Q1 in 6-K last night, reported EPS of $1.63 vs $0.67 in yr ago period; reports income up 176% yr/yr to $205.4 mln (13.34 -0.2

09:39 TECHX Sector Watch -Update- -Technical-

Modestly negative start for the market with Finance XLF, Regional Bank HOLDRs RKH, Transports TRAN, Materials XLB, Airline XAL, Clean Energy PBW, Chemical CEX pacing the way. Seeing strength in Gold/Silver XAU (GLD +1.2%, GDX +1.5%).
09:39 COMDX Morning Commodities Summary

Energy: The Dept. of Energy will release its weekly inventory stats at 10:30ET, where crude is expected to show a build of 2.7 mln barrels (which would be its 7th consecutive week of rising inventories), distillate is expected to show a draw of 2.2 mln and gasoline is expected to show a build of 375K. Overnight, Apr crude oil ($100.95 +0.07) pushed to a fresh all-time high of $102.08 before pulling back. Mar natural gas ($9.127 -0.079) expires today… Metals: Apr gold ($962.70 +13.80) surged to a new all-time high of $967.70 overnight as the dollar traded to a new all-time low of $1.5088 vs. the euro… Ag: The CBOT expanded wheat’s trading limit for the second straight day, increasing it to $1.35 from 90 cents after wheat rallied it daily limit yesterday. The exchange did the same thing before Tuesday’s session, raising the limit to 90 cents from 60 cents after wheat finished limit up on Monday as well. The move hasn’t helped May wheat ($10.795 -1.350) this morning, however, as it saw aggressive profit-taking overnight and is trading down its new trading limit in electronic trade.
09:36 COT Cott upgraded before the open to Outperform from Sector Perform at CIBC (2.43 -0.11)

09:35 BAGL Einstein Noah: Recommend purchase of BAGL shares ahead of this afternoon’s 4Q07 earnings conference call - Cowen (15.97 +0.36) -Update-

Cowen recommends purchase of BAGL shares ahead of this afternoon’s 4Q07 earnings conference call as they suspect the recent pullback due to fears of (a) a weak consumer and (b) higher wheat prices has been vastly overdone. They remain confident in their unchanged 2008 EPS estimate of $1.00 and continue to believe that BAGL shares can outperform the market by over +25% over the next 12 months.
09:33 BWP Boardwalk Pipeline downgraded before the open to Market Perform from Outperform at Morgan Keegan (27.26 -1.2

09:32 ANF Abercrombie: International equals next wave of growth - Bear Stearns (80.83 -0.1

Bear Stearns says retailers are running out of growth in a mature U.S. apparel market and new concepts are failing. As a result, international expansion is the only other viable growth option and not easy. Firm believes ANF has the brand strength and mgmt discipline to successfully penetrate international markets. Firm raised their international sales est by 50% based on stronger than expected sales trends in London, Canada and 5th Avenue locations. Firm’s detailed analysis by continent shows international markets could account for nearly 25% of co sales in five years. Firm sees ANF and Hollister growth potential in at least 15 major cities in Europe and Asia, as well as continued expansion in Canada.
09:32 ABK AMBAC Fincl: Dinallo says we are in the 8th inning of possible Ambac rescue - Bloomberg (11.87 -0.32)

09:31 AMZN Amazon.com slides lower off the open as it probes the 70.00 level just above its 4-day range low of 69.37 (70.10 -1.60) -Technical-

09:31 FNM Fannie Mae gaps down below its Nov low at 26.38 to set a new 52-wk low (25.50 -1.51) -Update- -Technical-

09:30 PRC Petro Resources: James Denny joins as Chief Operating Officer (1.69 -0.01)

09:30 LLNW Limelight Networks takeover update, no MSFT, yes Level 3 - Silicon Alley Insider (6.78 )

Silicon Alley Insider reports it has been all quiet on the co front since the website heard last month that MSFT wanted to acquire the co. Curious about the latest on this, the website checked in with a CDN industry source, and here’s what the website got: After connecting some dots, the source believes that the Microsoft takeover possibility is less likely than it was a month ago–before Microsoft made its play for YHOO. Specifically, the source hears that Limelight has begun investigating business development and/or M&A deals that wouldn’t make sense if it were about to be acquired by Microsoft. Although concluding that Limelight-Microsoft talks are off on the basis of this is obviously speculative, the theory makes sense in light of recent developments: If Microsoft buys Yahoo, the strategic rationale for buying Limelight–turbocharging its global cloud-computing infrastructure and expertise–would go away. Meanwhile, the source says that another Limelight takeover deal makes a lot more sense and speculates that it might happen sooner rather than later. Specifically, the source thinks Level 3 (LVLT) might buy Limelight.
09:30 RGR Sturm Ruger reports Y07 EPS of $0.46 vs $0.39 single analyst estimate; reports revs down 7% yr/yr to $156.5 mln vs $166.6 mln single estimate (9.12 )

09:28 MCD McDonald’s: Breakfast/snack remain recession resistant; raising 1Q08 and FY outlook; rasing Feb U.S. comp est - Cowen (56.45 )

Cowen recommends purchase of MCD shares as they suspect rising underlying USA sales strength. In fact, today firm is 1) increasing their Feb U.S. comp est by +200bp to +8.5%E (from +6.5%E and vs. Jan’s +1.9%A; Dec’s +0.0%A: inclusive of a +4% calendar shift (w/2008’s extra leap-year day); and, 2) increasing their 1Q08 and 2008 EPS ests (via taking their 08 US comp est to +3.0%E from +2.5%E) by +$0.01 and +$0.03 to $0.69E and $3.23 from $0.68 and $3.20 (vs. Consensus’ $0.67E and 3.18E), respectively. Firm continues to believe that MCD shares can outperform the market by over +10% over the next 12 months.
09:22 CRYP CryptoLogic reaffirms Q4 guidance; appoints new CEO (17.74 )

Co reaffirms guidance for Q4 (Dec), co say that it will ‘meet or exceed’ revs of $17.5-18.5 vs. $18.62 mln First Call consensus. Also announces the appointment of Brian Hadfield as the company’s President and CEO.
09:22 KMP Kinder Morgan Prtnrs prices a 5 mln share common unit offering raising approx $282 mln in net proceeds (58.58 )

09:20 TECHX Market View: Support and Resistance -Technical-

The market is looking south at the start in the wake of the three day run to the vicinity of 50 day averages for several indices. For a look at the daily charts and the short term outlook go to The Technical Take.
09:20 COMDX E.I.A Statistics

Petroleum inventory data is due out today at 10:30 E.T. According to the Bloomberg survey, analysts believe that crude oil inventories had a build of 2700K during the week ending Feb 22 (last year crude saw a build of 1421K); expectations range from a build of 300K barrels to a build of 3600K barrels (15 out of 15 analysts are expecting a build); prior 4 week avg is a build of 3969K… Analysts believe distillate fuel inventories had a draw of 2200K (last year distillates saw a draw of 3787K); expectations range from a draw of 3250K to a build of 1800K; (15 out of 16 analysts expect a draw); prior 4 week avg is a draw of 1504K barrels… Analysts believe gasoline inventories had a build of 375K (last year gas saw a draw of 1940K); expectations range from a draw of 1300K to a build of 2000K (9 out of 16 analysts are expecting a build, with 2 analysts at unchanged); prior 4 week avg is a build of 2481K barrels.
09:19 SAFM Sanderson Farms upgraded to Equal Weight at boutique firm (36.75 )

09:18 TSL Trina Solar: Strong Q4 report should help expand P/E; see 50%+ upside vs. the market in 12 months - Cowen (34.32 ) -Update-

Cowen notes that TSL is trading near the low end of comparables (on St. P/E), and they believe the valuation likely reflects: confusion about expenses (due to poorly communicated Q3 results and lack of Q4 guidance), concerns about silicon supply and cost, and expectations of potential dilution to finance a polysilicon plant. The firm expects Q4 net income about 20% above the Street. They believe management will provide greater transparency and more granular 2008 guidance. While silicon supply remains a constraint, they believe increased confidence should expand the P/E and see 50%+ upside vs. the market in 12 months.
09:18 BWS Brown Shoe initiated with an Accumulate at CL King-tgt $20 (16.23 )

09:16 CBI CB&I awarded contract in excess of $130 mln for Yarwun Alumina Refinery upgrade (46.47 ) -Update-

Co announces it has been awarded a contract valued in excess of $130 mln by Rio Tinto Alcan for the design and construction of storage tanks and associated works for the expansion of the Yarwun Alumina Refinery. CBI’s scope of work includes the engineering, fabrication, preassembly, and installation of numerous tanks and associated mechanical equipment, structural steel, piping, and insulation.
09:16 WRAPX Pre-market Summary

Following yesterday’s broad-based gains, the mkt’s third straight winning session, futures indicate a modestly lower open on profit-taking and following weaker than expected Durable Good Orders data. Orders in Jan fell a larger than expected 5.3% (consensus -4.0%), while last month’s gain was revised lower for a second time to 4.4% (previously 5.0%). Investors are also showing some hesitation ahead Fed Chairman Bernanke’s semi-annual testimony before the House Financial Services Committee on monetary policy, which begins at 10:00ET. Dow futures are currently -62; Nasdaq futures are currently -16.3; S&P futures are currently -9. For technical levels of interest, click here… The Bond mkt is surging this morning ahead of Bernanke’s testimony following weak economic data. Besides the Durable Goods Orders, MBA Mortgage Applications fell sharply for the second straight week (-19.2% vs the prior week’s -22.6%). The 10-yr is currently +14/32 to 3.804%… In Commodities, the Dept. of Energy will release its weekly inventory stats at 10:30ET, where crude is expected to show a build of 2.7 mln barrels, which would be its 7th consecutive week of rising inventories. Overnight, Apr crude oil ($100.62 -0.26) pushed to a fresh all-time high of $102.08. The CBOT expanded wheat’s trading limit for the second straight day, increasing it to $1.35 from 90 cents after wheat rallied it daily limit yesterday. The exchange did the same thing before Tuesday’s session, raising the limit to 90 cents from 60 cents after wheat finished limit up on Monday as well. The move hasn’t helped May wheat ($10.795 -1.350) this morning, however, as it saw aggressive profit-taking overnight and is trading down its new trading limit of $1.35 in electronic trade… In Europe, mkts were lower by mid-day as Britain’s biggest mortgage lender HBOS posted disappointing results, dragging down other financials and offsetting gains in miners and oil cos. FTSE is currently -1.3%; DAX is currently -1.2%; CAC is currently -1.3%. In Asia, mkts surged as a rally in commodities and better than expected results at Standard Chartered stoked optimism earnings will endure a global slowdown. Nikkei closed +1.5%; Hang Seng closed +3.2%; Shanghai Composite closed +2.3%… Notable pre-market Calls include Upgrades: XLNX at UBS; Downgrades: ABX at Credit Suisse, CHK, EOG, KWK and SWN at Citi, JASO, SOLF, TSL and YGE at BofA… On the Earnings calendar, 34 cos are confirmed to report today after the close, though none are expected to be market-moving releases… On the Economic calendar, Jan New Home Sales (consensus 600K; prior 604K) will be released at 10:00ET.
09:16 WIRES On The Wires

Blue Square-Israel (BSI) announces that it was served today with a claim and a request for approval as a class action, in which the co is being sued together with other defendants, including companies involved in the marketing of eggs and also other food marketing chains… Winn-Dixie Stores (WINN) announces plans to sell the two dairies it operates -one in Plant City, Fla. and the second in Hammond, La.- to Southeast Milk.
09:15 ECONX Fed Chairman Ben Bernanke’s Testimony Preview

Fed Chairman Ben Bernanke testifies before the House Financial Services Committee today at 10am ET as part of the semi-annual review of monetary policy and the economy. The testimony will include an explanation regarding the large easing in January, the state of the economy and expectations for economic growth and the inflation outlook. We expect Bernanke to hold to the boilerplate outlook that the economy will avoid recession despite stronger risks. However, the risk of recession needs to be stated. The confidence the Fed Chair shows may provide the lead for the equity markets. Confirming the presumption that the Fed will continue to respond to weak economic data has become more questioned as inflation pressures have reaccelerated. There’s plenty of room for market reaction if Bernanke tries to over-explain the Fed’s situation. While the economy sits on the edge of recession, inflation pressures continue to mount given strong global demand. The Fed has rationalized the focus on growth given the lagging nature of inflation. While the markets remain wary of continued inflationary pressures, we bet Congress would be content hearing of the expected lift in the second half tied to the large fiscal policy stimulus. The outlook will be hazy, just as policy direction has been during Bernanke’s effort to increase transparency. We expect the Fed Chair will clarify the key economic uncertainties and outline an improved outlook at mid-year as the monetary and fiscal stimulus gives the economy a jolt. The economic and policy outlook until mid-year, however, continues to weigh heavily on market participants. Bernanke’s responses will leave the near-term outlook for policy unclear, though, as we suspect he will again invoke the view that the Fed will be dependent on the incoming data. The Committee is likely to ask about the probability of recession, and continued inflation pressures, or even the Fed’s reduced ability to stimulate growth, which would be a backhanded compliment for the generous fiscal package– Briefing.com Chief Economist Tim Rogers.
09:15 SIGM Sigma Designs announces share repurchase program of up to 2 mln shares (30.61 )

“We believe a repurchase program is an attractive use of our cash and underscores our belief in the long-term value of our stock as well as our commitment to deliver shareholder value.”
09:15 S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -15.0.
09:14 WDC Western Digital issues upside guidance for Q3 (33.84 )

Co issues upside guidance for Q3 (Mar), sees EPS of $1.05-1.11 vs. $0.88 First Call consensus; sees Q3 (Mar) revs of $2.0-2.075 bln vs. $1.98 bln consensus. Co also sees gross margin of approximately 22% (up from 15.8% a year ago).
09:14 CSTR Coinstar: Redbox announces 1,800 kiosk rollout with Walgreens; second major chain rollout announced this month - Merriman (30.45 )

Merriman says Redbox announced an agreement with Walgreens (WAG) to install an additional 1,800 kiosks during 2008 and 2009. This adds to the kiosks that are already installed at roughly 250 WAG locations. Given that WAG operates almost 6,200 locations throughout the U.S., firm believes the expansion opportunity for Redbox with them is far from complete. Firm now have strong visibility into at least 4,500 kiosks to be installed between 2008 and 2009 — or more than 50% of their estimate of 8,400 kiosks to be installed during 2008 and 2009 combined. Firm would not be surprised if WMT and WAG install more than what has been already announced over the next two years.
09:10 BP BP CEO expects industry cost escalation to continue - DJ (67.38 ) -Update-

09:09 WIRES Newspaper Notable Mentions

WSJ: TV sales are expected to decelerate this year, even though millions of households haven’t yet switched from bulky, cathode-ray-tube TVs to sets with improved picture technology and, typically, thinner profiles. Much of the expected slowdown is a hangover from 2006, when excess supply heading into the holidays triggered sharp price cuts in digital TVs that were too good to pass up for many Americans, pulling sales forward… NY Times: Members of two writers’ unions ratified a three-year contract with Hollywood’s movie and television production companies on Monday, ending the entertainment industry’s most difficult labor negotiation in 20 years… DJ: Investment Corp. of Dubai said that it has made an offer for Spain’s Inmobiliaria Colonial, valuing the real estate co at EUR2.98 bln. For Colonial, the bid was considered as the last potential lifeline left for a co that has become crippled both by a soaring EUR8.6 bln debt and by the high leverage of the co itself… DigiTimes: In an attempt to stabilize the price of NAND flash, Samsung Electronics is said to grow its finished memory card shipments to help digest capacity and reduce supply to the spot market, according to sources at memory module makers in Taiwan.
09:09 WDC guides above consensus for Q3 in 8-K

09:08 OIIM O2Micro reinitiated with a Hold from a Buy at Wedbush- tgt $10 (8.64 )

09:07 MSCC Microsemi reinitiated with a Buy from a Strong Buy at Wedbush (22.65 )

09:07 WIRES On The Wires

Metalline Mining (MMG) announces selected drill hole results representative of the silver rich Polymetallic Manto mineralization north of the Sierra Mojada fault. Diamond drill hole D1061212, in the Plaza Rica area of the San Salvador mine, assayed an average of 129 grams silver per tonne and 3.8% zinc over an interval of 54 meters from 15 to 69 meters depth in the hole… Overstock.com (OSTK) announces that members of its group, Club O, will now receive free shipping in the continental US… General Physics , a subsidiary of GP Strategies (GPX), has been awarded a Homeland Security Exercise Program contract by the State of Tennessee, Department of Safety, Office of Homeland Security. G.P. values the contract at up to $1.24 mln if all exercises are conducted as scheduled… Compuware (CPWR) announces that its Covisint subsidiary has entered into an agreement to work with Microsoft HealthVault, Microsoft’s personal health technology platform.
09:05 SUPG SuperGen: Correction (2.70 ) -Update-

In our 7:22 comment we reported SUPG was downgraded to Neutral from Negative, when infact SUPG was upgraded to Neutral from Negative, our previous comment has been changed.
09:03 GBX Greenbrier Comp downgraded to to Neutral from Buy at Longbow (28.81 )

09:01 A sentiment/valuation disconnect pair trade (GOOG/AMZN) - AmTech

AmTech says GOOG shares have been hammered in the previous two sessions, provoked by third-party data suggesting growth in paid-click volume has slowed materially. The underlying fundamental concern is that a soft U.S. consumer is causing slow-down in eCommerce activity. While they disagree with the validity of comScore data, it seems a glaring disconnect that this concern has not also taken down shares of AMZN. Firm suggests that investors consider a long GOOG, short AMZN pairs trade to take advantage of this disconnect. If a softening U.S. consumer is causing a slow-down in the paid search market, online retail and AMZN would be hit harder than GOOG with more direct consumer exposure — in a tough environment online retailers may compete harder for fewer consumer dollars and spend more on search marketing per unit of rev.
09:01 ALC Assisted Living Concepts reports EPS in-line, misses on revs (5.97 )

Reports Q4 (Dec) earnings of $0.06 per share, excluding non-recurring items, in-line with the First Call consensus of $0.06; revenues fell 3.5% year/year to $56.5 mln vs the $57.2 mln consensus.
09:01 IBM IBM: Announces new Z10 mainframe, $15 bln stock buyback; rasing EPS ests - AmTech (114.38 )

AmTech says yesterday IBM made two important announcements: 1) its new Z10 Mainframe and 2) a $15 bln stock buyback. They view the new Z10 mainframe as a positive and the more significant news. The reason being they believe that its z-series high-end server line will now serve as a tailwind as opposed to a headwind as it has been over the past few quarters. Firm ests that the Z10 will have a positive impact on about 15-20% of its business (and perhaps as high as 25%) which includes associated software, services, and financing. For 2008, they are now modeling $8.25 in EPS, up from $8.20 (consensus at $8.22) and leaving rev essentially unchanged at $105 bln. For 2009, firm is now at $9.40, up from $9.35 (consensus at $9.21).
09:01 KOOL Thermogenesis subsidiary Vantus announces stem cell agreement with UC Davis Center for equine health (1.76 )

Co announces that its wholly-owned subsidiary, Vantus, has signed a formal agreement with the UC Davis School of Veterinary Medicine’s Center for Equine Health and its Stem Cell Regenerative Medicine Group. Under the agreement, the two organizations will conduct joint research and development of methods to enhance the collecting, processing and storing of stem cells from equine cord blood, bone marrow and placental tissue.
09:00 ADSK Autodesk: Guidance will likely pressure shares - AmTech (39.10 ) -Update-

AmTech says weak growth in the Americas, higher operating expenses, and lower EPS guidance will likely overshadow strong new seat and international demand and continued 25% maintenance growth at ADSK. The weak macro environment and execution challenges were cited for the 1% Americas growth. Higher sales commissions negatively impacted Q408 EPS and increased operational investments during 1H2009 negatively impacted EPS guidance. Firm believes the co’s ability to generate $650-700 mln in free cash flow per year, coupled with growth and contribution from high-margin recurring maintenance rev and continued share buybacks, could provide some level of downside support.
09:00 DWA Dreamworks Animation: Toshiba “blood” money props up DWA earnings…for now - Pali Research (24.44 )

Pali Research says given the complexity of film accounting, DWA has been a difficult co to model/forecast earnings for since its IPO, but that complexity moved to an all new level following Q4 2007 earnings. The issue that emerged surrounds Toshiba’s payments to DWA to win its support for HD DVD. While HD DVD is a “dead” issue now that Toshiba is winding down HD DVD production, DWA appears to have benefited significantly in Q4 2007 from its Aug. ‘07 agreement with Toshiba with 2008 benefiting meaningfully as well. Firm is maintaining their 2008 EPS est of $1.68, with a more conservative DVD outlook offset by the Toshiba benefits. Given that the Toshiba payments end with the DVD release of Kung Fu Panda, earnings comparisons will become more challenging in 2009.
08:59 MBI MBIA Inc: Moody’s and S&P say MBIA is AAA; debt market not so sure - Bloomberg.com (14.91 )

Bloomberg.com reports Moody’s and S&P say MBIA has enough capital to withstand losses and justify its AAA rating. MBIA’s debt investors aren’t so convinced. Credit-default swaps indicating the risk that MBIA’s bond insurance unit won’t be able to meet its obligations are trading at similar levels to companies such as homebuilder Pulte Homes (PHM), which is rated 10 steps lower. The discrepancy illustrates the skepticism debt investors have about the safety of MBIA’s rating after the company posted $3.4 bln of losses on subprime mortgages last quarter. Moody’s and S&P both said that while at least $4 bln of writedowns lie ahead, MBIA’s mgmt has made enough changes to warrant the top rating. Moody’s yesterday ended a five-week review of MBIA removing the threat of an imminent downgrade. S&P did the same a day earlier and also affirmed the top rating of New York-based Ambac Financial Group (ABK) who is still under review from both S&P and Moody’s.
08:59 S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -15.0.

Futures continue to indicate a lower start for the stock market, and are currently trading near their worst levels of the session. On top of the Bernanke speech, the market will be digesting new home sales data at 10:00 ET and the weekly energy inventory report at 10:30 ET.
08:55 XMSR XM Satellite and Sirius likely to extend 1 March termination date by period in excess of two months, sources say - FT Mergermarket (13.13 ) -Update-

FT Mergermarket reports amid frequent predictions of an imminent close in the XMSR and SIRI deal, the 53-week long DoJ investigation is still underway, reports dealReporter. March 1 2008 marks the day when both parties could walk away from the deal with no break-up fee. However, a former DoJ attorney said this situation is unlikely, especially when both parties have already invested so much in the process. Even if the investigation is concluded before March 1, the FCC will still have to issue a license. A source close to the situation said the post-DoJ process would take at least one to two months but nowhere close to six. The source said the FCC “commissioners know the issues” and that he cannot see the deal being “tremendously delayed” thereafter. The source claimed no knowledge of when DoJ consent would come, and said he would advise XM and Sirius to extend the termination date another three to six months to be sure and give the FCC time to act.
08:53 AEM Agnico-Eagle Mines tgt raised to $71 at RBC (67.39 )

RBC raises their tgt on AEM to $71 from $58. Firm has also revised thier gold and silver forecasts to reflect current market conditions and their outlook for the metals.
08:52 NOC Northrop Grumman: Investor day suggests 10%+ 2008-09 eps gains; tanker an upside wild card - Cowen (79.52 -0.52)

Cowen notes that a relatively upbeat NOC investor day suggests 10%+ 2008-09 EPS gains even if Australia cancels its F-18 buy & BA wins the imminent tanker competition. Thus, while they prefer faster growing RTN, they see little downside to the stock if BA wins tanker given NOC’s 13.7x P/E (10% <peers), 8.3x TEV/EBITDAP, & peer-hi 1.9% div. yield. Because investors appear to assume a BA win while the air force insists it will pick a winner on the merits without political consideration, the firm thinks the decision, due after the mkt close today or Friday, offers the stock 6-8% upside (to peer-P/E) if NOC is selected.
08:51 EXAC Exactech to acquire distribution company in France; expects transaction to be accretive in 2009 (25.20 )

Co announces the opening of a wholly-owned distribution subsidiary in Japan and the planned acquisition of a distribution subsidiary in France. EXAC said it will acquire the stock and assets of France Medica S.A.S, a Strasbourg-based importer and distributor of orthopaedic products and surgical supplies. The total purchase price is projected to be 6.8 mln to 7.1 mln euros. EXAC expects France Medica’s FY08 revenues will be approx 8.0 mln euros. The purchase price for France Medica involves 5.4 mln euros to be paid upon closing and 1.4 mln to 1.7 mln euros in earn-out payments based on the performance of France Medica over the next two years. EXAC expects the transaction to be neutral to earnings in 2008 and accretive in 2009.
08:50 Select internet software and services stocks reinstated at Merrill

Merrill reinstates Citrix (CTXS), Symantec (SYMC), and VeriSign (VRSN) with Neutrals
08:49 ECONX Durable Orders Follow Up

January durable goods new orders fell 5.3%. Surprisingly, this headline decline does not represent bad economic news. Orders rose 4.4% in December and 0.5% in November and a decline was fully expected. It was larger than the median forecast of 4% by economists, but this is a very volatile number and the net change the past three months is essentially flat. Excluding transportation, orders were down 1.6%, compared to an expected decline of 1.4%. That is well within economists’ ability to forecast this series and this follows a 2.0% increase. Other key components of orders were also weak, including the nondefense capital goods excluding aircraft category that is sometimes considered a barometer of business investment. It was down 1.4%. But this category was up 5.2% the prior month. The declines in orders for January are a reaction to surprisingly strong orders in December and a generally decent trend prior to that. It should be expected that orders will be soft given the overall economic climate, but orders are actually holding up quite well compared to the 2001 recession trends. The January declines reverse the net gain the prior two months, but a flat trend for November through January is not bad considering that orders normally drop much more dramatically ahead of recessions. Furthermore, the sum of orders the past three months represents more than just a flat trend. The extra orders that pushed December up, and the absence of which led to the January drop, raise the total of orders over the past three months above a truly flat trend, and will still lead to production and shipments in the months ahead.
08:48 CRI Carter Holdings downgraded to Hold from Buy at Sterne Agee- tgt cut to $23 from $30 (22.21 )

08:48 DLTR Dollar Tree beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY09 EPS in-line, revs in-line (26.41 )

Reports Q4 (Dec) earnings of $1.04 per share, $0.02 better than the First Call consensus of $1.02; revenues fell 1.5% year/year to $1.3 bln vs the $1.3 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.37-0.40 vs. $0.38 consensus; sees Q1 revs of $1.01-1.04 bln vs. $1.02 bln consensus. Co issues in-line guidance for FY09, sees EPS of $2.17-2.35 vs. $2.24 consensus; sees FY09 revs of $4.49-4.62 bln vs. $4.58 bln consensus.
08:46 CCU Clear Channel: Credit Suisse defects from syndicate again, tells investors ‘name your price’ - FT Mergermarket (33.80 )

FT Mergermarket reports the co arranger Credit Suisse again broke ranks with a bank syndicate today when it reached out to select buyside accounts with an offer of tailor-made OIDs on orders exceeding $100 mln, said two sources familiar with the situation. The bank adopted a “name your own price” marketing strategy to unload chunks of the $19.525 bln credit facility, they said. The decision to offer bespoke terms to investors in jumbo loans reflects underwriters’ increasing desperation to clear their balance sheets of the hung deals left over from last year’s LBO frenzy. Credit Suisse is proving more aggressive than most in this respect. The bank unilaterally sold off its portion of a $7.25 bln loan backing the purchase of Harrah’s Entertainment in January before other arrangers — Bank of America and Deutsche Bank — could price the transaction, buyside sources said.
08:45 FIFG 1st Independence Financial and MainSource Financial Group announce agreement to merge 1st Independence into MainSource; 1st Independence shareholders will receive $5.475 in cash and .881036 shares of MainSource common stock (10.79 )

MainSource Financial Group (MSFG) and FIFG, and 1st Independence Bank, a wholly owned subsidiary of FIFG, jointly announce the signing of a definitive agreement on February 26, 2008, to merge 1st Independence into MSFG. As a result of the merger, 1st Bank will become a wholly owned subsidiary of MainSource. The merger has been approved by the boards of directors of both companies. The merger agreement provides that 1st Independence’s shareholders will receive $5.475 in cash and .881036 shares of MSFG common stock for each share of 1st Independence stock owned. Based on MainSource’s Feb 26, 2008 closing price of $14.60/share, the transaction values 1st Independence at $18.34 per share or $37.0 mln in the aggregate, including the cashout value of 1st Independence’s in-the-money stock options.
08:45 PENN Penn National sponsors scratching their heads over original price; no indication of re-cut yet, sources say - FT Mergermarket (46.72 )

FT Mergermarket reports with the co shares taking a year-long beating in the eye of the credit storm, buyout sponsors Fortress and Centerbridge are aware that the original deal price for the casino operator might not be the best reflection of today’s market or of the fair value of Penn’s properties, according to dealReporter. “You don’t have to have a PhD in math to understand that [the buyers] bought at the top of the cycle and overpaid for properties that are not as glamorous as those of Harrah’s,” according to a source close to the deal. He went on to acknowledge Harrah’s, which had an unsuccessful showing in its own syndication efforts, has not only more, but higher quality real estate than Penn… When asked whether the sponsors might request a re-cut on the deal, the source admitted the possibility exists but that he had no indication the sponsors are pursuing or will pursue that avenue. Banks are on board for funding the deal and the merger contract contains a specific performance, leaving sponsors little room to wiggle out of the current agreement, the source said. However, if a price re-cut were to emerge, it would make it easier for banks to change their position, said the source. Still, market investors are sceptical any deal will happen with Penn currently trading around $46.00 per share on the deal valued at $67 per share. “I hear the deal has no way of closing,” said an equity investor. He gave a litany of reasons this deal has everything going against it: closed credit mkts, private equity shops under significant pressure, and regional market gaming results rapidly deteriorating.
08:42 SCANX Gapping down

In reaction to weak earnings/guidance: ADSK -13.0% (also downgraded to Hold at Needham and downgraded to Accumulate at ThinkEquity), DY -8.8%, LAMR -8.7%, NT -8.3%, URS -7.1%, CRI -6.5%, ESST -5.9%, DRC -5.3%, BTUI -5.1%, APSG -4.8%, FNM -4.5%, DYN -4.4%, OSG -4.3%, CVTX -3.6%, IHP -3.1%, BMRN -2.9%, BID -2.8%, RRC -2.7%, TX -2.6%, SQM -2.1%, SCRX -1.7%, MGA -1.4%, ORA -1.4%… Select solar stocks showing weakness following multiple downgrades: JASO -8.1% (downgraded to Neutral at BofA), SOLF -6.6% (downgraded to Sell at BofA), TSL -5.0% (downgraded to Sell at BofA), YGE -4.7% (downgraded to Neutral at BofA), LDK -1.5%, ESLR -1.4%, FSLR -1.2%… Select agriculture names showing weakness: CF -2.6%, TRA -2.5%, MOS -2.3%, AGU -2.2%, POT -2.2%, MON -1.8%… Other news: RJA -4.7% (still checking), EEP -3.8% (announces an offering of ~4 mln of its Class A common units), FRE -2.9% (down in sympathy with FNM), CF -2.9% (reports outage at its Medicine Hat, Alberta Nitrogen complex), ENS -2.7% (registers to sell 5 mln shares of common stock for holders), DAL -2.6% (CEO Anderson says no merger agreement yet with Northwest Air), AZN -2.2% (stopping study on the experimental cancer drug Recentin - DJ), KMP -1.9% (files for a 4.3 mln common unit secondary offering), JPM -1.4% (estimates cut at Citigroup), AMGN -1.6% and JNJ -1.1% (anemia drugs have blood clot, death risk, according to study - DJ)… Analyst downgrades: COST -2.2% (hearing downgraded to Neutral at tier 1 firm), EOG -1.6% (downgraded to Hold at Citigroup), CHK -1.5% (downgraded to Hold at Citigroup), GLNG -1.4% (downgraded to Hold at Jefferies), KWK -1.0% (downgraded to Hold at Citigroup).
08:42 T AT&T Exec says not pleased with 4Q figures, but sees better 1Q - DJ (35.57 )

08:41 LXP Lexington beats by $0.04, beats on revs; guides FY08 FFO in-line (15.43 )

Reports Q4 (Dec) funds from operations of $0.43 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.39; revenues rose 145.1% year/year to $122.3 mln vs the $116 mln consensus. Co issues in-line guidance for FY08, sees FFO of $1.56-1.64 vs. $1.57 consensus.
08:41 PXP Plains Exploration beats by $0.12, beats on revs; reiterates FY08 guidance (53.59 )

Reports Q4 (Dec) earnings of $0.81 per share, $0.12 better than the First Call consensus of $0.69; revenues rose 137.8% year/year to $493.6 mln vs the $481 mln consensus. “PXP reiterates the previously issued full year 2008 operating and financial guidance and today provided a range for estimated 2008 depreciation, depletion and amortization per BOE of $17.25 - $17.75.”
08:41 ADSK Autodesk tgt cut to $44 at Lehman (39.10 ) -Update-

Lehman cuts their tgt on ADSK to $44 from $60 following disappointing 4Q/FY09 earnings outlook on unanticipated increase in opex. Firm believes concern of U.S. slowdown despite strong international performance/outlook and higher expense outlook likely to weigh on sentiment in near-term. Look for stock to settle at $35 level representing PEG of 1x their EPS growth outlook of 16%.
08:39 LXP sees FY08 funds from operations of $1.56-1.64 vs $1.57 First Call consensus

08:39 LXP prelim funds from operations of $0.20 vs $0.39 First Call consensus; revs $122.3 mln vs $116.00 mln First Call consensus

08:38 WIRES On The Wires

Cash Systems (CKNN) announces the signing of a Letter of Intent to provide Cash Systems powercash product to American Gaming Group’s first casino project, The Wildwood Casino… Regenerex Biopharam (RGN) announces that it has entered into agreements with certain accredited investors with respect to the sale of 5 mln shares of the co’s common stock at a price per share of $1.00, for gross proceeds of $5 mln… O2Micro International (OIIM) was issued 8 claims under United States patent number 7,309,021 for its Dual Mode Smart Card Controller architecture; a continuation of the invention issued December 2006 under United States patent number 7,150,397… Hooper Holmes (HH) announces that it will host a conference call to provide a business update on Tue, March 4th at 2:00 pm ET. The focus of the call will be on the recent leadership transition and near-term operating strategy. As financial results for 2007 are not yet complete, the company will not discuss 4Q07 and year-end financials or 2008 projections… BearingPoint (BE) announces that the Department of Homeland Security has awarded it a Blanket Purchase Agreement for Homeland Security Presidential Directive 12 products and services. BE is one of three firms awarded a five year B.P.A., and D.H.S. estimates a total potential value of approx $180 mln for the three contracts.
08:38 NVLS Novellus: Caris previews Mid-Quarter update (23.77 )

Caris says NVLS will hold their mid-quarter update after the close on Feb 28. Firm expects the co to maintain their guidance. Although industry conditions remain challenging they have not detected any new rounds of cancellations or push-outs. Firm believes the catalysts for NVLS shares will be market share gains and improving earnings leverage. Firm maintains their Above Average rating and their above consensus FY08 ests of $1.5 bln/$2.11.
08:38 JPM JP Morgan Chase: YTD declines in leverage loan, CMBS and RMBS prices will force another round of mark to market hits for the large cap banks in 1Q08 - Citigroup (43.72 ) -Update-

Citigroup believes that YTD declines in leverage loan, CMBS and RMBS prices will force another round of mark to market hits for the large cap banks in 1Q08, although marks will be less severe than seen in 4Q. The firm estimates a $2.15 bln impact for BAC ($0.31/shr), $1.44 bln hit for JPM ($0.27), and $590 mln impact for WB ($0.19). At STI they expect M.T.M. losses will roughly offset gains from mark ups on corporate debt, but exposures are harder to pin down. They note that leveraged loans are one of the biggest drivers of mark in 1Q08. Firm cuts their JPM 1Q08 estimate to $0.75 from $1.02 (consensus $0.95).
08:37 PXP prelim $0.81 vs $0.69 First Call consensus; revs $493.63 mln vs $480.98 mln First Call consensus

08:35 CRDN Ceradyne tgt cut to $60 at Needham (35.75 ) -Update-

Needham cuts their tgt on CRDN to $60 from $101 following 4Q07 results. Firm believes CRDN is an attractive investment for the following reasons: 1) There is potential for revenue growth after 2008 driven by vehicle armor and aluminum extraction businesses; 2) Technological and manufacturing leadership position in a variety of advanced ceramic materials; 3) Aggressively positioning itself to diversify into non military opportunities as solar.
08:34 EIX Edison beats by $0.07, misses on revs; guides FY08 EPS in-line (52.36 )

Reports Q4 (Dec) earnings of $0.65 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.58; revenues rose 4.7% year/year to $3.21 bln vs the $3.5 bln consensus. Co issues in-line guidance for FY08, sees EPS of $3.61-4.01 vs. $3.70 consensus.
08:34 ADSK Autodesk downgraded to Hold at Needham (39.10 ) -Update-

Needham downgrades ADSK to Hold from Buy following earnings. The firm says Autodesk remains a very well positioned company, but in the face of spreading economic uncertainty in a major geography, they believe it will be difficult for Autodesk to be a good stock for the next 6-9 months.
08:33 S&P futures vs fair value: -8.6. Nasdaq futures vs fair value: -14.5.

Futures come under additional selling pressure, and then dip a bit more on an economic report. Just released, January durable good orders fell 5.3%, which is more than the consensus estimate that called for a decline of 4.0%. Excluding transportation, orders fell 1.6%, compared to the expected decline of 1.4%. In corporate news, Fannie Mae (FNM) reported a larger than expected loss, although it is not clear if it is comparable to the consensus estimate.
08:32 FSS Federal Signal beats by $0.03, beats on revs (11.00 )

Reports Q4 (Dec) earnings of $0.17 per share, $0.03 better than the First Call consensus of $0.14; revenues rose 3.5% year/year to $351 mln vs the $343.8 mln consensus.
08:32 CAST ChinaCast Education initiated with a Buy at Brean Murray- tgt $9 (5.38 )

Brean Murray initiates CAST with a Buy and a $9 tgt saying they believe that ChinaCast should benefit from the booming private education market in China. The firm says with a combination of its e-learning platform and brick and mortar campuses, ChinaCast is poised to expand its market share in post-secondary and vocational education markets. They also believe the roll-out of “Daily English” schools will help the company venture into the fast-growing language training market in China and provide additional earnings power.
08:32 WRNC Warnaco Group: Raising ests and tgt tp $44 as Warnaco does Calvin right - Brean Murray (36.67 )

Brean Murray is raising their 2008 EPS est, rolling out a further double-digit bottom-line growth est for 2009, increasing their tgt to $44 (from $39) and maintaining their Buy rating after WRNC announced better than expected 4Q07 results and introduced formal 2008 guidance above their projections. Solid top- and bottom-line upside for 4Q07 provided a vivid demonstration of the power of the Calvin brand and mgmt’s ability to register higher margins in a tough environment. Firm believes that in 2008, as the rev mix shifts to higher-margin international business and the co feels the full effects of its restructuring of the swim and lingerie businesses, WRNC has the potential to register further material top- and bottom-line upside.
08:31 WPO Washington Post reports Q4 EPS of $8.71 vs $8.85 First Call consensus; revs $1.13 bln vs $1.11 bln First Call consensus (726.00 )

08:31 SKP SCPIE Holdings letter to stockholders refutes Stilwell’s statements (27.00 )

Co announces the mailing of a letter to its stockholders, reiterating the SCPIE Board’s continuing support of The Doctors Company all-cash offer of $28 per share, and refuting many of the statements made by Joe Stilwell in several recent letters to SCPIE stockholders. “Stilwell would have you believe that the “spot” price of ACAP’s stock today is a relevant data point. It is not. He further wants you to believe that the thinly traded stock of this Michigan company, which has been affected by its recently announced stock buyback programs, could have had a value higher than $28 per share under the terms of their offer last October. What he fails to point out is that it just as easily could have been valued at well less than $28 per share at the time of the closing of the transaction.”
08:31 FSS prelim $0.17 vs $0.14 First Call consensus; revs $351 mln vs $343.77 mln First Call consensus

08:31 Stock index futures slump to pre~mkt lows as traders digest Durable Goods figures

S&P 500 (ES H @ 1373.00 -9.75. Nasdaq 1oo (NQ H @ 17800.00 -16.75
08:31 EIX sees FY08 $3.61-4.01 vs $3.70 First Call consensus

08:31 EIX prelim $0.65 vs $0.58 First Call consensus; revs $3.21 bln vs $3.50 bln First Call consensus

08:30 AXL American Axle: UAW challenges American Axle - Detroit News (22.94 ) -Update-

Detroit News reports the United Auto Workers union is digging in against the co, saying it must see key financial information about the company before it can assess the supplier’s demand for across-the-board wage and benefit cuts. The issue is a hot point because the union consented to historic givebacks last year in contract talks with Detroit’s Big Three automakers but was allowed to review the finances of GM and F. The UAW has also agreed to drastic wage cuts at Delphi and other auto suppliers, mostly as a result of bankruptcy proceedings. American Axle spokeswoman Renee Rogers said the supplier has “provided the union with all the information they are entitled to receive.”
08:30 ECONX January Durable Goods Orders ex-trans -1.6% vs -1.4% consensus, prior month +2.0%

08:30 ECONX January Durable Goods Orders -5.3% vs -4.0% consensus, prior month revised +4.4%

08:29 BONDX Bid Before Bernanke

The market found a good bid ahead of what is likely to be bad data and moderately dovish testimony by the Fed chief. Globally bonds were bought overnight as equities pared recent gains but overall sentiment in both markets remains mixed and data dependent. The 2-10-yr yield spread is bending steeper at 188.1. Bond prices in the EuroZone were up but saw some pullback following hawkish ECB commentary while in Japan, bonds were lightly bid on value (yields at near 8-week high - Bloomberg) ahead factory data. Treasuries will peek at more housing data this morning which continue to plumb the depths of multi-year lows. Refis had another bad week according MBA’s mortgage application repo setting the bar maybe even lower. Bernanke takes the Hill today to begin his 2-day testimony. He will speak of the ongoing seizures in housing and credit markets setting the stage for further easing on the back of downside growth risks but some attention will need to be paid to inflation. The market will attempt to divine just how much easing he is considering in light of pesky inflation data. The odds-on favorite stands at 50 basis points next month and room for another 50 bps by Jun. Supply also weighs with the monthly 2- & 5-yr auction hitting today and tomorrow. The dollar got further slammed on the euro, taking out new record levels to trade near 1.5090, with more rate cut denial out of ECB officials and ongoing US cuts. The yen is headed towards its best levels on the month, looking at 106.00. Gold is working higher with spot now 957.91 (+9.76) as the buck keeps stumbling while crude saw further gains as inflation worries uptick,now 101.03 (+0.15) after a run through 102. Data due has durable orders (8:30) and new home sales (10). The $26B 2-yr note auction goes and the big bad Bernanke testimony hits at 10. The euro is at 1.5045 and the yen is at 106.3440 while the 10-yr is +20/32 yielding 3.782%.
08:28 CSCO Cisco Systems: To announce new edge router focusing on services - Stifel (24.07 )

Stifel says their checks indicate that CSCO is likely to release a new edge router on March 4 called the ASR 1000. The router, they believe, is based on the new QuantumFlow chip that the co introduced earlier this week. The new product is being targeted at both the service provider and enterprise markets. Firm believes the two biggest selling features of the new router are multiple embedded services and a small footprint.
08:28 FNM Fannie Mae files 10-K, issues mortgage market overview (26.97 ) -Update-

Co reports Y07 EPS of ($2.63), includes an increase of $2.8 bln in provision for credit losses, an increase of $5.1 bln in market-valuation losses, and a decrease of $2.2 bln in net interest income; excluding gain, co reports EPS of ($3.79), may not compare to ($0.05) consensus. “Mortgage and housing market conditions, which significantly affect our business and our financial performance, worsened progressively through 2007. The housing market downturn that began in the second half of 2006 continued through 2007 and is continuing in 2008. The most recent available data show significant declines in new and existing home sales, housing starts and mortgage originations compared with prior year levels. We estimate that home prices declined by 3.1% on a national basis during 2007. With weak housing activity and national home price declines, growth in total U.S. residential mortgage debt outstanding slowed to an estimated annual rate of 8% in the first nine months of 2007, compared with 12% over the first nine months of 2006. These challenging market and economic conditions caused a material increase in mortgage delinquencies and foreclosures during 2007. The credit performance of subprime and Alt-A loans, as well as other higher risk loans, has deteriorated sharply during the past year, and even the prime conventional portion of the mortgage market has seen signs of credit distress. Many lenders have tightened lending standards or elected to stop originating subprime and other higher risk loans completely which has adversely affected many borrowers seeking alternative financing to refinance out of adjustable-rate mortgages (”ARMs”) resetting to higher rates. We expect the slower growth trend in U.S. residential mortgage debt outstanding to continue throughout 2008, and we believe average home prices are likely to continue to decline in 2008… We expect housing market weakness to continue in 2008, leading to increased delinquencies, defaults and foreclosures on mortgage loans, and slower growth in U.S. residential mortgage debt outstanding. Based on our current market outlook, we expect that our credit losses and credit-related expenses will continue to increase during 2008, as will our guaranty fee income. We also believe that our single-family guaranty book of business will grow at a faster rate than the rate of overall growth in U.S. residential mortgage debt outstanding. We have experienced an increased level of volatility and a significant decrease in the fair value of our net assets since the end of 2007, due to the continued widening of credit spreads since the end of the year and the ongoing disruption in the mortgage and credit markets. If current market conditions persist, we expect the fair value of our net assets will decline in 2008 from the estimated fair value of $35.8 billion as of December 31, 2007.”
08:27 PLAB Photronics: Is Photronics on the block? - EE Times (10.72 )

EE Times reports is the photomask industry hitting a speed bump or headed towards a crisis? The truth could be somewhere in the middle. Amid soaring photomask prices and slow business conditions, rumors are running rampant that the only remaining merchant photomask maker in the United States–Photronics Inc.–is on the block. Some industry analysts dismissed the rumors. Other sources speculated that Photronics is in talks with an unnamed party to be acquired. Most wonder why anyone would want to invest in the photomask arena; the margins are tiny and the business is tough. Executives from Photronics have not returned calls. But if Photronics is sold to a foreign party, the U.S. could find itself without a merchant photomask maker. It also could have some implications for MU, which has a joint photomask venture with Photronics.
08:24 FWLT Foster Wheeler tgt cut to $90 at Stifel (67.26 ) -Update-

Stifel cuts their tgt on FWLT to $90 from $94 following 4Q07 results. Firm says that falling scope rev as a percentage of total rev and a rising tax rate cause firm to trim their 2008 EPS est from $3.64 to $3.37, still within the $3.19 to $3.50 consensus (mean $3.42 before today’s changes), and for 2009 their est goes from $4.56 to $4.13 as they adopt a show-me posture with respect to GP margins.
08:22 WMZ William Pipeline Partners initiated with a Buy at Stifel- tgt $21 (19.55 )

Stifel initiates WMZ with a Buy and a $21 tgt saying they view the initial partnership asset (35% interest in the Northwest Pipeline) as very strategic given the captive nature of many of its customers. Some customers in the Northwestern U.S. rely on this pipeline for their sole source of interstate gas deliveries. The firm says the cash flows associated with the Northwest system are stable.
08:22 JRJC China Finance Online: In-line 4Q07 results and reaffirmed guidance may be good enough - Brean Murray (16.98 )

Brean Murray expects JRJC to report 4Q07 results consistent with its preannouncement and to reaffirm its 2008 guidance when it reports earnings on Feb 28. Given the extremely challenging environment in recent months, they believe the reaffirmation of guidance should be enough to mitigate many investors concerns regarding the co’s business outlook. Firm could see a modest positive reaction following earnings.
08:21 HWAY Healthways upgraded to Buy at Stifel- tgt $39 (31.93 )

Stifel upgrades HWAY to Buy from Hld with a $39 tgt noting HWAY lowered its 2008 outlook for total revenues and EPS as a result of slower-than-projected enrollment growth and the failure to close two significant contracts. The firm says wellness and D.M solutions continue to be of interest and evaluated by employers. The firm also says HWAY is experiencing strong sales momentum illustrated in $90 mln of annualized, signed business in the fiscal year - more than any other year. Two sizable contracts (at least 4% of total revenue) up for renewal in 2009 have already been signed. This bodes well for those renewals that remain. In addition, they believe HWAY will have a competitive advantage for key D.M prospects in the coming year due to potential integration concerns of the pending Inverness and Matria merger.
08:21 ALU Alcatel-Lucent: French govt denies plans to enter Alcatel-Lucent capital - DJ (6.37 )

DJ reports spokesman for the French govt denied the govt is planning to enter into the co’s capital, contrary to press reports. “These are pure speculations, I deny them most formally,” government spokesman Laurent Wauquiez said at a press conference. Earlier, the French finance ministry also said the French govt doesn’t intend to buy a stake in Alcatel-Lucent.
08:20 SCANX Gapping up

In reaction to strong earnings/guidance: ACY +32.2% (restates 2006 and 2007 quarterly results), HCKT +16.9%, EDAC +13.1%, LKQX +11.5%, ERES +10.3%, DWA +7.6%, SGY +7.6%, WRNC +6.4%, AXTI +5.7% (also upgraded to Buy at Roth Capital), HLF +5.6%, PCR +5.2%, VPHM +5.1%, MXWL +5.0%, SBLK +4.8%, ENOC +4.7%, SONE +4.0%, ARUN +3.9%, NFLX +3.8%, IRIS +3.3% (also announces successful completion of retrospective study of 85 post-prostatectomy patients), VSNT +3.2%, PZZA +3.1%, STO +2.9%, MEDX +2.7% (also upgraded to Mkt Perform at BMO), TVL +1.5%, BARE +1.4%, COGT +1.4%, CVA +1.1%, TRCA +1.0%… Select gold stocks showing strength with higher spot prices: DROOY +4.2%, GFI +2.7%, GLD +1.2%, HMY +1.0%, NEM +1.0%… Other news: ANO +6.3% (still checking), TTEK +3.1% (awarded $3 bln program ceiling contract to support Air Force Center for Engineering and the Environment), STM +2.9% (still checking), FRO +2.2% (still checking), WST +1.7% (will replace SIE in S&P SmallCap 600 after the close of trading on 2/28), CRXX +1.0% (granted broad patent covering TCA-Glucocorticoid Combinations)… Analyst upgrades: THC +8.2% (upgraded to Hold at Jefferies), PRXI +7.8% (initiated with Buy at Merriman), XLNX +1.5% (upgraded to Buy at UBS).
08:18 BP BP sees 4.3 mln barrels a day by 2012 based on $60 oil price - DJ (67.38 )

DJ reports the co said that in a $60 price world it’s confident not only of boosting output over the next four years but of being able to sustain production of at least 4 mln barrels a day until 2020 even with no new discoveries or access to new opportunities. BP also said it has replaced its annual production by 112% in 2007, taking its proved reserves of oil a