Trading for the Masses

09:12 DECK Deckers Outdoor: Lazard says buy the dip on better guidance than it appears; tgt raised to $200 (126.46 )

Lazard says DECK blew away 4Q expectations, reporting $2.69 p/s, +48% vs. $1.82 LY, $0.28 above consensus $2.41 (+12%), much higher than original guidance of $1.99 in July (+35%), and revised guidance of $2.08 in Oct. (+29%). Based on firm’s checks, retailers are blowing out of UGGs, and the co is well positioned (as it was entering 4Q) to maximize demand. Total inventory is +60%, comprised of UGG +100%. Firm believes, if trends hold up, DECK could deliver 1H rev growth +40%, 15% above guidance, enabling it to leverage its SG&A spend more effectively. Firm believes DECK is one of the few names that can successfully motor through whatever the consumer slowdown can throw at it
09:09 DECK Deckers Outdoor: Upgrade details (126.46 )

As mentioned at 7:04 RBC upgraded DECK to Outperform from Sector Perform and riases their tgt to $146 from $117 following earnings. The firm says despite the blow-out quarter and annual guidance, shares declined approx 10% in after-market trading, likely due to management’s 1Q:08 guidance which came in below Street. The firm says Uggs were one of the few must-have items this past holiday. In the currently difficult environment, they believe that retailers will stick with proven winners when it comes to placing orders and reorders for future product and this will likely sustain the company’s momentum. Both the Ugg and Teva lines in 2008 will be expanded vs. 2007 and offer more newness and customer choices.
09:08 SIGM Sigma Designs: BWS Financial says UTSI news should be some sigh of relief for SIGM (29.98 )

BWS Financial says UTSI new should be some sigh of relief for SIGM. Firm says there has been a persistent concern of inventory issues in the April quarter, but all they have been seeing in the channel is continued consumption of appliances carrying the 8635 processor. UTSI was supporting over 750 thousand IPTV users at the current moment compared to 600 thousand in Nov. The action in SIGM shares seems to reflect the shares of a co that has reported poor earnings results. This is not the case with SIGM. Firm feels investors may have over reacted and has caused a snowball effect where the rumor is now believed to be the truth. Firm remains confident in SIGM reporting $0.90 for the January quarter.
09:08 WRAPX Pre-market Summary

Following yesterday’s broad-based declines, futures indicate another lower start for the mkt. The negative bias continued yesterday after the close when Dell (DELL) reported disappointing Q4 results and offered cautious comments on the IT spending environment, while AIG (AIG) reported a $5.3 bln Q4 loss that was the worst in the co’s history. Overnight, losses in foreign mkts and renewed attention on the dollar’s weakness combined to keep buyers on the sidelines and put futures in a hole early. They briefly bounced just after 6:30ET when Assured Guaranty (AGO) announced it has signed an agreement for Wilbur Ross to purchase $250 mln of common shares and to provide a commitment to purchase up to $750 mln of additional common shares of Assured at the option of the co. The move was short-lived, however, after a CNBC commentator said the bailout of Ambac (ABK) hit a “fairly significant” snag in recent days over the amount of capital that the consortium of banks are willing to put in and how much capital is needing to maintain ABK’s AAA rating. Dow futures are currently -108; Nasdaq futures are currently -10.8; S&P futures are currently -11.6. For technical levels of interest, click here. Futures had a muted reaction to this morning’s economic data. Core PCE, the Fed’s key measurement for inflation, held steady in Jan at 2.2%, while Personal Spending (0.4% vs the 0.3% consensus) and Personal Income (0.3% vs the 0.2% consensus) both beat expectations last month… Following yesterday’s massive gains, the Bond mkt is seeing continued momentum this morning on a flight-to-quality and weak equity mkts. The 10-yr is currently +15/32 to 3.611%. Looking ahead on the Fed calendar, Governor Mishkin and Boston President Rosengren speak as part of a U.S. Monetary Policy Forum panel at 11:00ET, Atlanta President Lockhart speaks as part of a panel on the subprime mortgage crisis at 12:15ET and Chicago President Evans and St. Louis President Poole speak as part of a U.S. Monetary Policy Forum panel at 13:30ET… In Europe, financials led mkts lower as investor concern grew over the outlook for economic growth, prompting a safe-haven switch into the telecoms and food and drinks sectors. FTSE is currently -0.7%; DAX is currently -1.6%; CAC is currently -1.0%. In Asia, mkts closed lower on heightened concern the U.S. is headed for a recession and as the dollar neared a 3-year low against the yen. Nikkei closed -2.3%; Hang Seng closed -1.1%; Shanghai Composite closed +1.1%… Notable pre-market Calls include Upgrades: DECK at RBC Capital, DELL at Friedman Billings, DGX at Credit Suisse, DT at Citi, PFE at Lehman Brothers; Downgrades: AIG at Keefe Bruyette, MF at Credit Suisse, Lehman Brothers and UBS, NVS at HSBC, TTWO at Cowen… On the Earnings calendar, ATPG, FOE and POM are the only cos confirmed to report today after the close… On the Economic calendar, Feb Chicago PMI (consensus 49.5; prior 51.5) will be released at 9:45ET, while the final reading on Feb Michigan Sentiment (consensus 70.0; prior 69.6) will be released at 10:00ET.
09:08 FOE Ferro reports Q4 (Dec) results, beats on revs; guides Q1 revs in-line (17.26 )

Reports Q4 (Dec) earnings of $2.58 per share, includes charges, may not be comparable to the First Call consensus of $0.13; revenues rose 14.8% year/year to $570.7 mln vs the $537.3 mln consensus. Co issues guidance for Q1, sees EPS of $0.12-0.17, includes charges, may not be comparable to $0.26 consensus; sees Q1 revs of $550-575 mln vs. $552.45 mln consensus.
09:06 STV China Digital TV initiated with a Hold at Roth Capital- tgt $20 (22.22 )

Roth Capital initiates STV with a Hold and a $20 tgt saying while they believe STV is well positioned to take advantage of growth in China digital to analog transition and the consequent growth in CA products, they believe much of the future growth could squeeze STV’s ASPs and margins.
09:05 Gross says Pimco stayed out of U.S subprime mortgage market; says Fed may have to lower rates below 2%- Bloomberg

09:04 NNI Nelnet beats by $0.08 (11.02 )

Reports Q4 (Dec) earnings of $0.34 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.26.
09:04 ACU Acme United Corporation reports Q4 EPS of $0.15 vs $0.11 in yr ago period; reports revs up 23% yr/yr to $14.9 mln with no estimates (13.39 )

09:03 Semiconductors: Time to buy; March quarter tracking very well - Cowen

Cowen says with tw-thirds of March quater behind us, firm believes it is appropriate to compare qtr-to-date performance per their channel checks with the common themes from the just completed earnings season. In general, cos are performing very well relative to conservative guidance which reflected economic uncertainty. They believe it would take significant deterioration in remaining wks of March Q to push most cos to lower-end of guidance. Firm recommends building positions in large liquid names such as INTC and TXN and in names such as IDTI and ONNN, which have been overly beaten up.
09:03 CDE Coeur d’Alene Mines beats by $0.02, beats on revs; issues production guidance for FY08 (4.84 )

Reports Q4 (Dec) earnings of $0.05 per share, $0.02 better than the First Call consensus of $0.03; revs fell 10.6% yr/yr to $59.93 mln. Co sees FY08 production of 16 million ounces of silver, representing nearly a 40% increase over 2007 silver production levels. The company also expects to produce approximately 68,000 ounces of gold during 2008.
09:02 FOE sees Q1 $0.17-0.22, ex charges, vs $0.26 First Call consensus; sees revs $550-575 mln vs $552.45 mln First Call consensus

09:02 GRP Grant Prideco reports Q4 (Dec) results, misses on revs (52.50 )

Reports Q4 (Dec) earnings from continuing operations of $0.91 per share, may not be comparable to the First Call consensus of $1.10; revenues rose 11.8% year/year to $505.4 mln vs the $566.3 mln consensus.
09:02 TSRA Tessera Tech: Cowen believes that the PTO patent review is far from over and investors are overly concerned about patent validity (24.96 )

Cowen says TSRA has rebounded only slightly after the massive sell-off that followed the ITCs decision to ’stay’ the ‘wireless’ case on Tuesday. Particularly confusing to tech investors are the implications of the ongoing patent reviews in this case. Investors want quick, definitive answers but the reality is that this case, which involves multiple courts, highly technical patents and complex interdependencies is extremely complicated. Firm believes that the PTO patent review is far from over and investors are overly concerned about patent validity. That said the stock will likely trade in a range till the AMKR arbitration on 3/31. Firm sees 15-20% upside vs the mkt over 12 months based on 16x ‘09E EPS of 1.49 +cash.
09:02 PSSI PSS World Med announces Flu vaccine sales agreement with Novartis Vaccines and Diagnostics (17.64 )

Co announces that it has entered into a unique agreement with Novartis (NVS) Vaccines and Diagnostics, to act, under a fee-for-service arrangement, as a sales agent and to provide logistical and related services to its customers for the sale of Novartis’ FLUVIRIN influenza virus vaccine. The company’s Physician Business, Physician Sales & Service, expects to market and sell a minimum of two mln doses of FLUVIRIN on behalf of Novartis Vaccines to office-based physicians in the upcoming 2008/2009 influenza season. Orders may be placed for FLUVIRIN influenza virus vaccine for the 2008/2009 influenza season through Physician Sales & Service offices located nationwide.
09:01 CDE 2008 production outlook

Coeur currently expects to produce approximately 16 million ounces of silver in 2008, representing nearly a 40% increase over 2007 silver production levels. The company also expects to produce approximately 68,000 ounces of gold during 2008.
09:01 NNI prelim $0.34 vs $0.26 First Call consensus

09:01 AGT Apollo Gold announces 1.33 mln ounces of gold reserves at its Black Fox project (0.62 )

09:01 GRP prelim $1.00 vs $1.10 First Call consensus; revs $505.4 mln vs $566.25 mln First Call consensus

09:00 GT Goodyear Tire signs 3 year contract with Pacific Gas and Electric (28.36 )

(PCG)
09:00 CDE prelim $0.05 vs $0.03 First Call consensus; revs $59.93 mln vs $67.07 in yr ago period

09:00 FOE prelim $2.58, may not be comparable vs $0.13 First Call consensus; revs $570.7 mln vs $537.33 mln First Call consensus

08:59 S&P futures vs fair value: -13.2. Nasdaq futures vs fair value: -26.0

Futures contine to point to a negative start, but have climbed off their worst levels. UBS said financial companies are likely to have at least $600 billion in write-downs, according to Bloomberg.com. This is far more than the current total of write-downs, which stands at more than $160 billion.
08:58 LH Laboratory: Investor day preview; “return to normalcy” - Cowen (78.84 )

Cowen expects LH’s Investor Day on Monday to address several important topics such as recent managed care developments; CMS’ competitive bidding demonstration project, and streamlining initiatives. Firm believes the managed care discussion, in particular, will hint at future increases in EPS guidance. They continue to rate the shares Outperform and think they can outperform the market by 10-15% over the next year based on positive earnings revisions and modest multiple expansion.
08:58 SCANX Gapping up

In reaction to strong earnings/guidance: MRVC +23.6%, SDIX +12.8%, IPG +12.7%, SAPE +12.2%, JOEZ +12.2%, UTSI +9.6%, OVTI +9.4%, INAP +8.1%, ESL +8.0%, CLUB +7.8%, FCN +6.0% (also announces the acquisition of TSC Brasil; terms not disclosed), GPS +5.4% (also announces $1 billion share repurchase program), CSCX +5.3%, INT +4.7%, NOVL +4.7%, URI +4.1%, SGMS +4.1%, BXG +4.0%, NXG +3.1%, WR +3.0%, JRJC +2.9%, HEI +2.7%, EXAC +2.6%, CTV +2.5%, ESEA +1.7% (also upgraded to Buy at Cantor Fitzgerald), SWN +1.3% (also declares two-for-one stock split)… Other news: COMS +21.0% (Bain Capital and China’s Huawei plan to resubmit an application seeking U.S. approval for their planned $2.2 bln buyout of 3Com - WSJ), JAZZ +15.4% (FDA approves once-daily Luvox extended release), AGO +11.9% (announces commitment by Wilbur Ross to purchase up to $1 bln of common equity), TTWO +4.2% (approached by other cos since EA offer - WSJ), RHT +4.1% (still checking), QDEL +4.1% (says the FDA grants CLIA waiver for its QuickVue RSV test), KRY +3.7% (provides shareholders a recap of achievements and progress for the Las Cristinas gold project in Venezuela), IVN +2.7% (still checking), TTWO +2.7% (still checking), GXDX +2.2% (prices a 2.08 mln share common stock offering at $25.50/share), CCK +1.5% (announces stock repurchase program of up to $500 mln), ACLS +1.5% (Sterling Capital Management amends 13D filing; wants ACLS to proactively solicit bidders for co)… Analyst upgrades: BKD +1.3% (upgraded to Buy at Stifel).
08:56 BF.B Brown-Forman misses by $0.04, reports revs in-line (66.07 )

Reports Q3 (Jan) earnings of $0.94 per share, $0.04 worse than the First Call consensus of $0.98; revenues rose 16.2% year/year to $877 mln vs the $881.6 mln consensus. The company is narrowing the range of its full-year earnings outlook forfiscal 2008 to $3.42 to $3.50 per diluted share vs consensus of $3.46.
08:54 SLAB Silicon Labs: Mid-quarter check points to healthy in-line trends - Stifel (31.68 )

Stifel says that as they end the second month of the period they’ve completed a round of checks, which for SLAB they believe point to a quarter that thus far is matching expectations for nothing more than normal seasonality. With firm’s view of order trends and backlog, they expect the co is likely to meet its guidance for revenue to range from $93-$97 mln and EPS to be $0.34-$0.36. Current consensus expectations are for rev of $95.26 mln and EPS of $0.36, roughly in line with their projections.
08:53 ECONX PCE, Personal Income & Spending Follow Up

January personal income rose 0.3%. That was 0.1% better than expected. Personal consumption expenditures (PCE) rose 0.4%, compared to an expected gain of 0.2%. After inflation, that resulted in a near flat PCE for January. The core rate on the PCE deflator was 0.3%, which was in-line with expectations. Of all this data, the most important is that the January level of real (inflation adjusted) PCE, at $8.351 billion for January, is above the $8.341 billion level as reported yesterday for the fourth quarter average for real PCE. The market won’t notice much, but this represents a 0.1% increase. If similar trends are posted in February and March, which seems very possible given that consumers were restrained in January, then real PCE will rise at about a 0.5% annual rate for the first quarter. PCE comprises about 70% of GDP. That gain in the PCE, combined with momentum in the numbers for business investment (which have held up well), strength in net exports, growth in government spending, and a probably significant contribution from inventories, will prevent significant weakness in the GDP report for the first quarter, even though economic activity overall is sliding. Consumer sentiment is extremely poor, but that did not prevent consumers from spending such that real PCE is still on an upward trend as of January.
08:52 CTV Commscope: Andrew acquisition emerging as major EPS growth driver in 2008-2009 - Stifel (38.45 )

Stifel says CTV reported 4Q07 EPS excluding charges of $0.55 vs. $0.40 last year and vs. firm’s $0.55 est. Firm says CTV issued 2008 guidance with expected sales of $4.1-$4.3 bln and operating income of $525-$575 mln. CTV expects a continuation of generally healthy demand in 2008. Firm is maintaining their 2008 EPS forecast of $3.45, representing a 22.1% increase over the $2.82 EPS reported in 2007. They reducing their forecast moderately for the legacy CTV operations and increasing their Andrew forecast. Firm now forecasts that legacy CTV operations will add $0.25 EPS in 2008, or 8.9% EPS growth, and that Andrew operations will add $0.38 EPS in 2008.
08:50 MEMS Memsic initiated with a Buy at Needham- tgt $9 (7.34 )

Needham initiates mems with a Buy and a $9 tgt noting MEMS announced in line DecQ4 results and provided flat Q/Q guidance that they believe has substantially discounted the Chinese handset sentiment risks to the stock. The newly announced Olympic torch program will have a positive impact on 2008 revenue, albeit on a lower GM. The firm believes this will result in materially higher earnings than previously anticipated.
08:48 BGFV Big 5 Sports: FY08 outlook suggests macro impacting sporting goods - Stifel (11.85 ) -Update-

Stifel says BDFV reported 4Q07 EPS of $0.28, at the high-end of their lowered 4Q07 EPS range. Essentially firm believes ests are likely to fall by 30%-35%. Lower guidance is combination of softer sales outlook, resultant de-leverage, and gross margin pressures. Results and guidance simply show discretionary spending pressures, with particular emphasis of pressures stemming from California housing market. Firm is cutting FY08 ES from $1.35 to $0.87 and FY09 from $1.47 to $0.90. The prime downside driver is comp performance. BGFV is squeezed by both the economy and potential DKS expansion in West Coast markets.
08:48 TTWO Take-Two downgraded to Neutral at Cowen (26.00 )

Cowen downgrades TTWO to Neutral from Outperform recognizing that shares are being driven by an arbitrage situation. They recommend that investors take some profits in the stock given an uncertain near-term outcome. While they believe that the most likely outcome is an acquisition by Electronic Arts at a higher price than the current bid, their assessment of the likely weighted average outcome indicates limited expected near-term upside from current levels.
08:47 PLI Proliance Reaffirms Fourth Quarter Guidance (3.04 )

Co expects to report improved yr/yr financial performance for Q4, and a small pre-tax profit, before restructuring and debt extinguishment expenses, for 2H. This update is consistent with previous guidance.
08:46 NVS Novartis AG initiated with a Neutral at Cowen (50.61 )

Cowen initiates NVS with a Neutral noting Novartis offers the most diversified business base in the pharmaceutical industry, a handful of powerful franchises, and a pipeline with a few exciting opportunities. Growth appears robust over the next three years, but patent expirations clip growth substantially in 2011-12 and drive roughly industry average 2007-12 compound growth. Given this profile, the firm says NVS is not “a table-pounder.”
08:46 NVLS Novellus: Color on mid-quarter update (23.04 )

Citi says NVLS left unchanged all guidance ranges including orders, shipments, revs, gross margins, and EPS. This was consistent with firm’s preview although they felt there was a bias toward the low-end of orders (and still do). Of note, NVLS did not narrow guidance ranges despite only a month left in the Q suggesting ongoing lack of visibility and firm believes some undecided volume orders related to some recent evaluation tools it has placed in the field. As they indicated in the preview, orders remain Samsung-heavy and, now, TSMC has begun to start ordering again… AmTech says NVLS reaffirmed 1Q08 guidance with no changes to its metrics. To review, the bookings outlook is flat to down 15% Q/Q. Revenue is est at $320 mln +/- $5 mln (Street at $319 mln), with a gross margin of 47% and EPS of $0.21-0.24 (Street at $0.23). Shipments are expected to be in the range of $325-$350 mln. While CEO Rick Hill is upbeat about the demand outlook in computing related applications, macro weakness and uncertainty has caused chip customers to stay cautious in their spending plans. Firm believes Street expectations for a snapback in both rev and EPS are too aggressive and are likely to be reduced.
08:45 PRICE Filings, Offerings, Pricings and IPOs

Filings: Dean Foods (DF) files for a mixed shelf offering; announces it has agreed to sell approximately 18.7 mln shares of common stock in a registered public offering… Offerings: OSI Pharm (OSIP) announces that it intends to file with the SEC a resale shelf registration statement on or before April 1, 2008 on Form S-3 pursuant to the terms of a registration rights agreement OSI entered into on Jan 9, 2008 in connection with the sale of its $200 mln principal amount of 3% convertible senior subordinated notes… Pricings: Genoptix (GXDX 25.55) prices a 2.08 mln share common stock offering at $25.50/share.
08:44 CDL Citadel Broadcasting misses by $0.02, reports revs in-line (1.36 )

Reports Q4 (Dec) earnings of $0.05 per share, $0.02 worse than the First Call consensus of $0.07; revenues rose 115.4% year/year to $245.5 mln vs the $246.5 mln consensus.
08:44 DMRC Digimarc reports Q4 (8.99 )

Co reports Q4 EPS of $0.01 vs $0.00 consensus; reports revs up 12% yr/yr to $28.4 mln vs $28.3 mln consensus.
08:44 MSA Mine Safety misses by $0.15, misses on revs (45.01 )

Reports Q4 (Dec) earnings of $0.48 per share, $0.15 worse than the First Call consensus of $0.63; revenues rose 4.1% year/year to $267.5 mln vs the $275.7 mln consensus.
08:42 NYT New York Times reports that total Jan revs from continuing operations decreased 5.5% y/y (18.55 )

Co announces that in Jan total company revenues from continuing operations decreased 5.5% compared with the same month a year ago. Advertising revenues decreased 9.8% and circulation revenues increased 1.6%. The About Group again posted strong advertising growth in the month, up 24.7%.
08:40 AIG American Intl CEO sees negative operating earnings through 2008 - DJ (50.15 ) -Update-

08:38 CRZO Carrizo Oil & Gas downgraded to Neutral from Add at Capital One Southcoast (61.53 )

08:37 ARD Arena Resources downgraded to Add from Strong buy at Capital One Southcoast (43.11 )

08:36 AMGN Amgen: Young might set dangerous precedent; psychological impact on investors will be profound and AMGN could test the low $40s - Citigroup (45.53 ) -Update-

Citigroup notes that Judge Young denied Roche’s request for new trial & granted preliminary injunction vs. Roche enjoining it from launching Mircera. Firm thinks Young’s offering of a specific criteria is concerning since it suggests that he is willing to allow Mircera to launch. Firm thinks the psychological impact on investors will be profound and AMGN could test the low $40s.
08:36 WIRES Newspaper Notable Mentions

WSJ: Pricier commodities are pushing some govts to look for ways to offset the increases with new investment vehicles. One govt in the Middle East has started an investment co that plans to break ground on mining projects in Asia, Africa and Eastern Europe and has already made a $1 bln deal to develop a region of Indonesia rich in coal and other natural resources… CNET News.com: AMD’s quad-core “Barcelona” chip for servers is ready to launch. Really launch this time. AMD is shipping the quad-core “Barcelona” Opteron to channel and distribution partners this week, according to an AMD spokesperson on Thursday. System vendors such as Dell and Hewlett-Packard (HPQ) are readying systems for shipment in the second quarter… DigiTimes: AUO has played down a newspaper report that claims the maker has received orders from handset, notebook, and GPS device makers for touch panels, with shipments slated for the second half of 2008. AUO, in a brief filing with the Taiwan Stock Exchange, said the co had not announced information about receiving touch panel orders and that it was the Chinese-language Economic Daily News that reported so.
08:36 KRY Crystallex provides shareholders a recap of achievements and progress for the Las Cristinas gold project in Venezuela (2.18 )

Co provides shareholders a recap of achievements and progress for the Las Cristinas gold project in Venezuela. From 6-k, co says “during 2007, our project partner the Corporacion Venezolana de Guayana was formally notified by the Ministry of the Environment and Natural Resources of Venezuela that all the requirements for the issuance of the Las Cristinas Environmental permit had been fulfilled” … Measured and indicated resources are estimated at 20.76 mln ounces (629 mln tonnes with an average gold grade of 1.03g/t) The resource estimate comprises Measured Resources of 146 mln tonnes at a gold grade of 1.14g/t (5.38 mln ounces) and indicated resources of 483 mln tonnes at a grade of 0.99g/t (15.38 mln ounces). Proven and probable reserves based on a US$550 gold price assumption are estimated at 16.86 mln ounces of gold (464 mln tonnes grading 1.13g/t).
08:36 WIRES On The Wires

Goodrich (GR) announces that it has signed an agreement to acquire TEAC Aerospace, a provider of proprietary airborne mission data, video recording and debrief products for the defense industry, and cabin video systems for commercial airlines. The transaction is subject to customary closing conditions and regulatory approvals. Terms of the acquisition were not disclosed… Digital Angel (DIGA) announces that it is the second largest supplier of radio frequency identification tags for Canada’s mandatory cattle identification program… Biogen Idec (BIIB) announces that it has priced a public offering of $1.0 bln principal amount of senior unsecured notes.
08:35 PSA Public Storage upgraded to Buy from Hold at Deutsche Bank (81.79 )

08:35 ACLS Axcelis Tech: Sterling Capital Management amends 13D filing; wants ACLS to proactively solicit bidders for co (5.42 )

In filing, the firm states “On February 25, 2008 Axcelis Technologies issued a press release indicating that its board had rejected the purchase offer from Sumitomo Heavy Industries. Although we agree with the board’s conclusion that the initial bid from SHI was too low, Sterling continues to believe that full engagement of SHI and other potentially interested parties is in the best interest of shareholders. In a correspondence sent today, we provided to the board our perspective on the appropriate value for Axcelis. Additionally, we encouraged the board to instruct their advisor to proactively solicit other potential bidders for the firm.” The firm disclosed an 11.9% stake.
08:34 VNDA Vanda Pharma: Genetic variation associated with treatment response in a clinical study of a new atypical antipsychotic fiaptatm (4.79 )

A study reported in the journal Pharmacogenomics suggests that a genetic variation in the Ciliary Neurotrophic Factor gene may affect response to antipsychotic treatment. The study, conducted by VNDA included patients with acute symptoms of schizophrenia who were treated either with Fiapta, a novel atypical antipsychotic agent currently under review with the FDA, or placebo. Patients were also studied for a genetic variation in the CNTF gene. C.N.T.F is a neurotrophic factor important for neuronal survival and recovery after injury. About 75% of the population carry two intact copies of the CNTF protein while 25% carry one or two truncated copies of the protein. As previously reported in the clinical study overall, it was shown that Fiapta was significantly more effective than placebo in treating both the positive and negative symptoms of schizophrenia. In addition, Fiapta showed significant improvement from baseline in all symptoms across all patient genotypes of C.N.T.F.
08:33 LYV Live Nation downgraded to Hold at Morgan Joseph (12.20 )

Morgan Joseph downgrades LYV to Hold from buy following earnings and based on disappointing 2008 guidance. The firm believes the light organic EBITDA “guidance,” vague 2008 outlook, and lack of near-term catalysts creates uncertainty for Live Nation in 2008.
08:33 S&P futures vs fair value: -15.4. Nasdaq futures vs fair value: -30.0.

Futures don’t get much of boost after better than expected income and spending numbers. January personal income increased by 0.3% month over month (consensus +0.2%), spending increased by 0.4% (consensus +0.2%) and core PCE rose by 0.3% (consensus +0.3%). December’s spending reading was revised higher to 0.3% from 0.2%.
08:33 DUCK Duckwall-ALCO Stores updates FY08 guidance, lowers revs below consensus (20.39 )

The Company estimates EBITDA of approximately $13 mln in Fiscal 2008, compared with $19 mln in Fiscal 2007. The EBITDA level targeted in the June 2007 plan was $29 mln, updated in December 2007 to a target range of $25 to $27 mln. This EBITDA estimate is based on several preliminary financial results: Sales of $499 mln for Fiscal 2008, vs $548.70 mln First Call consensus, that compares with a target of $507 mln in the June 2007 operating plan. Gross margin of 31.4% for Fiscal 2008 that compares with a target of 32.3% in the June 2007 operating plan.
08:32 KSS Kohl’s: Achieves low end of forecast and lowers the bar for FY09 - Jefferies (45.24 )

Jefferies is maintaing their Hold rating on KSS, but lowering their ests and tgt to $45 from $47 following Q4 results. Given its highly discretionary product mix and a challenging consumer environment, they believe deep discounting will continue to be necessary near term to achieve sales targets and maintain market share.
08:31 MYE Myers Industries reports Q4 EPS of $0.52 may not compare to $0.22 single estimate; reports revs up 20% yr/yr to $232.8 mln with no estimates (14.49 )

08:31 MSA prelim $0.48 vs $0.63 First Call consensus; revs $267.5 mln vs $275.69 mln First Call consensus

08:31 DMRC prelim $0.01 vs $0.00 First Call consensus; revs $28.4 mln vs $28.25 mln First Call consensus

08:31 ECONX January PCE Core m/m +0.3% vs +0.3% consensus

08:30 ECONX January PCE Deflator y/y +3.7% vs +3.5% consensus

08:30 BMY Bristol-Myers announces that FDA approves Abilify for the acute treatment of manic and mixed episodes associated with Bipolar I Disorder in pediatric patients (22.91 )

Otsuka Pharmaceutical and Bristol-Myers Squibb (BMY) announces that the FDA approved the supplemental New Drug Application for ABILIFY for the acute treatment of manic and mixed episodes associated with Bipolar I Disorder, with or without psychotic features in pediatric patients. The approval is based on results from a four-week, multicenter, randomized, double-blind, placebo-controlled study in pediatric patients with Bipolar I Disorder that demonstrated efficacy with ABILIFY compared to placebo on the primary efficacy endpoint, mean change from baseline to Week 4 on the Young-Mania Rating Scale Total Score.
08:30 ECONX January Personal Spending +0.4% vs +0.2% consensus, prior month revised to +0.3% from +0.2%

08:30 ECONX January Personal Income +0.3% vs +0.2% consensus

08:30 ECONX January PCE Core y/y +2.2% vs +2.2% consensus

08:28 SFD Smithfield Foods upgraded to Buy from Neutral at Merrill (26.85 )

08:28 RDC Rowan Cos: Reducing ‘08 and raising ‘09 ests - RBC (41.85 )

RBC is reducing their 2008 EPS est on RDC to $4.56 from $4.65. Firm says lower ests primarily accounts for rig downtime in 1Q08, specifically a jackup mobilizing to Saudi Arabia for a long-term contract. For 2009, firm raises EPS ests to $5.16 from $5.02. Estimate reflects higher day-rate assumptions for two 240C newbuild jackups.
08:27 Citigroup raises their fertilizer price forecasts; raises tgts on CF, AGU, MOS & POT

Citigroup raises their fertilizer price forecasts following the recent runup in spot markets. Firm thinks prices may continue to surprise to the upside in ‘08-’09 if soft commodity prices remain near current levels. Firm remains universally positive near term. They raise their tgt on CF to $164 from $146, noting CF is their top pick, followed by AGU (firm raises tgt to $88 from $82) and MOS (raises tgt to $142 from $121), and then POT (raises tgt to $195 from $17 and TRA.
08:26 CHINA CDC Corp President and CFO Xiaowei Chen Resigns - Pacific Epoch (3.93 )

Pacific Epoch reports the co’s human resources department confirmed on Friday that co president and former CFO Xiaowei Chen has resigned to pursue other opportunities. The co has not made an official announcement regarding the news. CDC’s official website lists Chen as director and president of CDC Games and China.com and director and CEO of CDC Mobile. CDC Corporation has called on its own former CFO and financial director Zheng Lai to replace Chen effective February 15, reports qq.com.
08:26 Bond market rallies in early trade on flight to quality, sending 10-year yield down to 3.59% - the lowest level since 2/11

08:25 BVF Biovail: RBC says if a bid were made, a range of $16.50 to $18.50 is possible (14.72 )

RBC says that BVF’s founder, Eugene Melnyk, sent a letter to the Board expressing his dissatisfaction with mgmt. Firm recently undertook a comprehensive review of BVF’s products and updated their SOTP which indicated the value of BVF’s products was $16.91/sh. This amount includes regulatory fines and settlements of ~$1/sh but excludes all pipeline value. Firm says it is difficult to assess the likelihood of a bid materializing, especially given the 2005 situation. However, if a bid were made, firm believes a range of 16.50 to $18.50 is possible.
08:21 GILD Gilead Sciences: RBC expects continued market share gains for HIV franchise (45.46 ) -Update-

RBC says in an NIH sponsor study designed to determine the best first line regimen in HIV patients. Truvada was compared to Glaxo’s Epzicom as the NRTI backbone, and the DSMB found that patients with a high viral load did much worse on Epzicom compared to Truvada. Firm views the news from the NIH-sponsored study as one more positive to drive continued uptake of Gilead’s industry-leading HIV drugs because it confirms Truvada as the preferred first-line NRTI backbone for HIV.
08:21 BMO Bank of Montreal may abandon debt rescue - Globe and Mail (53.95 )

Globe and Mail reports the bank has signalled it may pull out of an effort to restructure $33 bln in stranded asset-backed commercial paper, as mounting woes in the global credit market leave the bank facing margin calls of more than $500 mln on two of its own ABCP trusts. According to sources, bank officials recently advised the group of ABCP investors seeking a fix for the market, known as the Crawford Committee, that BMO may no longer be able to honor its commitment to contribute to a $14 bln line of credit. That credit line is the centrepiece of a plan to swap the frozen notes into new long-term bonds. Bank of Montreal’s specific commitment to the so-called liquidity line has never been disclosed, but it is one of four Canadian banks that agreed in Dec to provide as much as $2 bln in total. The remaining $12 bln is backed by a group of intl banks… If banks balk at helping the Crawford Committee, they raise the prospect of a fire sale of assets that would further drive down credit markets and exacerbate losses in other areas of their businesses. “We are no longer in the same world that we were in December,” said a person familiar with the discussions between the banks and the committee. “We are struggling to hang on.” A spokesman for the committee said the group is still expecting all Canadian banks to support the restructuring.
08:19 BONDX Night Flights

The flight-to-quality was given a turbo-boost overnight as treasuries found another gear on crumbling confidence and stocks. Bernanke’s comments reverberated around the globe as his sour growth outlook for the foreseeable futures hit trade where it counts; confidence. The 2-10-yr yield spread is edging a little steeper at 188.8 but still holding in a comfort zone. Bond prices in the EuroZone and Japan flew higher on risk aversion with the former also benefiting from soft confidence data. Treasuries have a good head-start into the final session of the week/month. Expectations for data are pretty low and trade has adjusted for a bigger chance of 75 basis points of cutting next month so anything short of bad data will likely see some of the froth come off prices. Month-end squaring may also weigh on prices but given the awful sentiment hanging over the economy, dips are likely to get bought. The dollar conceded fresh record territory to the euro overnight while yen blew through prior trend lows of 104.9500 on continued de-leveraging and carry unwinds. Spot gold shaved record gains to 967.06 (-3.69) while crude oil has backed off to 102.18 (-0.18). The calendar has personal income/spending, core PCE (8:30) along with Chicago PMI (9;45, maybe, the number has a tendency to be leaked or otherwise botched in some manner), and UofM revisions (10). The Fed has Mishkin (11), Lockhart (12:15), Evans and Poole (13:30). The euro is at 1.5169 and the yen is at 104.1900 while the 10-yr is +20/32 yielding 3.594%.
08:19 CNQ Canadian Natrl Res upgraded to Outperform from Market Perform at BMO Capital (77.34 ) -Update-

08:19 SCANX Early pre-market gappers

Gapping up: COMS +27.1%, MRVC +23.6%, INAP +19.4%, AGO +15.9%, SDIX +12.8%, SAPE +12.2%, UTSI +10.9%, ESL +8.0%, ALNY +6.3%, OVTI +6.1%, FCN +6.0%, CTV +5.7%, URI +5.7%, CSCX +5.3%, GPS +4.9%, JRJC +4.9%, INT +4.7%, NOVL +4.7%, TTWO +4.5%, SGMS +4.1%, TTWO +3.8%, KRY +3.7%, NXG +3.1%, CPHD +3.0%, IVN +2.7%, SWN +2.0%, BIDZ +1.8%, CCK +1.5%, MBT +1.3%, VLO +1.2%… Gapping down: FMT -23.7%, SEPR -10.9%, DECK -10.2%, ABK -8.5%, MNI -7.8%, DTSI -7.7%, TIE -7.3%, SONS -6.7%, DF -6.0%, HANS -6.0%, CDL -5.9%, CEGE -5.8%, HRS -5.4%, RHD -5.2%, BGFV -5.1%, AIG -4.9%, BCS -4.3%, SVNT -4.2%, HMSY -3.7%, UBS -3.6%, S -3.5%, EAS -3.1%, AAUK -3.1%, SLT -3.1%, LMC -3.0%, FIG -2.9%, CC -2.9%, AEG -2.8%, AXA -2.6%, ING -2.5%, LYV -2.5%, CS -2.4%, MT -2.2%, LIZ -2.1%, HBC -2.0%, DELL -1.6%, MOVE -1.6%, WST -1.4%, AMGN -1.4%, MRT -1.3%.
08:19 LTD Limited tt cut to $23; February business soft, but significant opportunities remain - RBC (15.85 )

RBC says LTD shares are down 8% post the conf call. Firm says Feb business is tough with comps down 10-12%. Mgmt’s guidance assumes a recovery in the back half of the year. The market may not be putting as much faith into a recovery next fall. V.S. mgmt spoke about returning the brand to its roots of being the fashion leader in intimate apparel, elevating the level of sophistication in stores, and driving the business with fewer more impactful product launches. While firm understands the concerns surrounding the co and the stock, they continue to stick with this name for the margin potential that these businesses posses. Firm cuts tgt to $23 from $25.
08:18 BGFV Big 5 Sports downgraded to Market Perform from Outperform at Wachovia (11.85 )

08:18 NEM Newmont Mining accuses Bumi of secret plan over shares - FT (52.84 )

FT reports the co accused Bumi Resources, Indonesia’s largest coal miner, of putting at risk its contract to operate a $4.7 bln gold and copper mine by secretly plotting to undermine the share divestment process. Bumi has been orchestrating a confidential campaign to finance local govts around the Batu Hijau mine on Sumbawa island in eastern Indonesia to purchase shares and then take control of them, documents obtained by the FT and people involved in the deal have revealed. Bumi told the FT it had signed confidential non-binding memoranda of understanding with the governor of West Nusa Tenggara province and heads of Sumbawa and West Sumbawa districts in March and August last year to buy not only the 10% stake that Newmont and Sumitomo, its partner in the mine, must divest, but the remaining 21% that must be sold by 2010. Bumi and the local govts agreed to buy the shares through a joint venture of which Bumi would control 85%, the MOUs say. In return Bumi would pay each local administration at least $1 mln a year until all the shares were acquired. Under the contract of work the shares are meant to be bought and controlled by the local govts, or a private co of Newmont’s choosing. Russell Ball, Newmont’s chief financial officer, told the FT Newmont was “deeply disturbed” by Bumi’s actions. “We had believed we were negotiating in good faith . . . to divest shares that would benefit the people of the local communities,” he said.
08:17 JTX Jackson Hewitt downgraded to Neutral from Buy at FTN Midwest (21.76 )

08:15 BKD Brookdale Senior Living upgraded to Buy at Stifel- tgt $35 (24.96 )

Stifel upgrades BKD to Buy from Hold with a $35 tgt following earnings. the firm says they have been reluctant to upgrade BKD shares in advance of what they thought could be soft 4Q/1Q results and a possible a dividend cut. They believe BKD’s net asset value is at least $37 per share and believe the share repurchase effort, particularly if financed with a dividend cut, will help unlock this value.
08:12 EOG EOG Resources downgrade details (124.73 )

As mentioned earlier, RBC downgraded EOG to Underperform from Sector Perform, but raised their tgt to $110 from $95, citing valuation after the co increased 2009 & 2010 production guidance from 10% to 13-15% organic growth. The co also introduced 4 new early stage resource plays that firm believes have marginal economics. Firm believes the stock is ripe for a pullback in the near term.
08:10 TI Telecom Italia new plan to reorganize co, cut dividend, according to report - DJ (25.67 )

DJ reports the co CEO Franco Bernabe will call for the phone co to be reorganized horizontally based on customer groups as part of its new business plan, Italian daily Il Messaggero reported. The plan also calls in part for a reduction in the ratio of debt to core profit, acceleration of revenue from Brazil and Argentina, no capital increase and acquisitions only through share swaps, the newspaper said. The board is expected to approve the plan at a March 6 meeting. Il Messaggero also reported that the Italian phone company will enjoy 55% of shareholder Telefonica’s EUR 1.3 bln in synergies in three years.
08:10 UNS Unisource Energy downgraded to Hold at Soleil (25.59 )

Soleil downgrades UNS to Hold from Buy saying while UNS management reported 4Q and 2007 results late yesterday that were close to consensus estimates, it introduced 2008 guidance of $1.70-$2.20/shr with a major caveat—that guidance would be a buck below that range if core-utility Tucson Electric must refund TRA collections in the June-December 2008 period.
08:09 BWS Brown Shoe: 4Q07 EPS preview - Brean Murray (15.38 )

Brean Murray says BWS will report 4Q07 results on Wednesday, March 5, before the market opens and are expecting 4Q07 pro forma EPS of $0.42, in the middle of the $0.39-0.44 guidance. Firm believes that the co experienced a difficult quarter with revs and EPS down 6% and 10%, respectively. However, the co seems to have managed its inventories well despite the decline in overall retail traffic. Also, they believe that the co’s Wholesale division is poised for a turnaround in 2008, as its Brown New York brands begin to gain traction and as the Naturalizer brand benefits from a noticeable movement toward “comfort” footwear.
08:09 BSC Bear Stearns: Rebel investors seize Bear hedge funds - FT (84.22 )

FT reports rebel investors have seized two failed Bear Stearns hedge funds in a move their lawyers hope will give them a platform to sue the US bank for compensation. A Cayman Islands court ejected liquidators appointed at the behest of Bear to run offshore feeder versions of Bear Stearns High-Grade Structured Credit and Enhanced Leverage funds, replacing them with investor-supported liquidators. The move prepares the ground for the investors to try to win back some of the $1.6 bln lost in the collapse of onshore and offshore Bear funds last July, the first high-profile victims of the subprime crisis. James McCarroll, who represents the investors, said it was “the first major step, by any party, toward securing recovery of the more than $1 bln lost by overseas institutional investors in these funds”.
08:07 AMGN Amgen: Mircera overhang returns - Lehman (45.53 ) -Update-

Lehman is maintaining their Overweight rating on shares of AMGN following a Federal Court preliminary injunction against the launch of competing ESA Mircera for anemia related to chronic kidney disease. While the Federal Court Judge has left open the possibility of allowing Mircera sales under certain conditions and while this will likely cause near term uncertainty firm believes that AMGN will ultimately prevail in gaining a permanent injunction against Mircera launch given the recent positive jury verdict affirming AMGN patents.
08:07 ECONX PCE Preview - Data due out at 8:30AM ET

The key consumer indicators of personal income and spending are released Friday along with the Fed’s primary index of inflation — core PCE prices. With the market now focused on whether the economy has or will enter into a recession, the combined read of personal spending and the PCE price index provides “real” or inflation adjusted spending, which provides slightly more than 70% of GDP. Hence, it is a key read on economic growth. Briefing.com expects personal income to rise 0.4%, spending to rise 0.3% and core PCE to be up 0.2%. The consensus estimates are for 0.2% gains in income and spending and a 0.3% increase in core PCE inflation. Personal income is the base for spending growth. Annual growth in spending is tracking the pace of after tax income growth, with annual gains of 5.7% and 5.5% expected to keep the economy on a slow growth path as opposed to dipping into recession. Yet, the mounting consumer headwinds of high energy costs, falling home prices, tighter credit and plunging confidence are imposing forces given the added dimension of stronger inflation. Core inflation will show annual growth in the 2.1% to 2.2% range — in-line with the revised 2008 Fed estimates but above the 2% high end of the Fed’s “comfort zone.”
08:07 GM General Motors: 10Ks show pressure on multiple fronts - Lehman (24.50 )

Lehman says their first view of the GM, GMAC, and ResCap 10ks broadly reinforces our concern that near-term pressure is increasing for GM. Firm takes away five key points from the 10ks that build on themes that keep them cautious on GM in 2008, specifically: 1) the Delphi bankruptcy deal not likely to obtain exit financing, with GM unlikely to receive the prior expected $2.25 bil in cash. 2) ResCap faces several liquidity challenges in 2008 3) GM Automotive faces continued variable and fixed cost headwinds 4) pricing pressure continues with weak market and product cycle 5) they think auto credit performance and availability is likely to deteriorate in 2008
08:06 JAZZ Jazz Pharma: Luvox CR approved; major positive - Lehman (12.57 )

Lehman views the FDA approval of Luvox CR as a major positive for Jazz, as regulatory risk has now been removed and commercial-related catalysts should drive the stock higher as the product gains traction with the medical community in the coming yr. With Luvox CR the first of several potential commercialized products in the pipeline, their investment thesis remains intact.
08:06 MOT Motorola: CFO departure lifts split possibility - Lehman (10.40 )

Lehman says that although MOT holds out internal restructuring as an option, its emphasis on 2H08 improvements in Phones, the switch to CFO Paul Liska, and an impending May shareholders meeting leads us to conclude a split is very likely. Firm checks plus the appointment of a new CFO with a deal making history suggest MOT is preparing to split.
08:06 AWI Armstrong World Industries reports Q4; completes strategic review; declares special dividend (33.13 )

Co reports Q4 EPS of $0.37 vs $0.39 consensus; reports revs up 4% yr/yr to $852.4 mln vs $813.4 mln consensus. Co sees Q1 EPS of $0.30-0.35 vs $0.65 single estimate; co sees revs to decline about 5%. Co sees Y08 EPS of $2.30-2.90, excluding non-recurring items, vs $2.68 single analyst; reports revs of $3.5-3.65 bln vs $3.39 bln single estimate. Co announces it has completed its strategic review, announced in February 2007, after extensive evaluation of alternatives, including a possible sale of co’s individual businesses and the entire company. Co’s Board of Directors concluded that it is in the best interest to continue to execute the co’s strategic operating plan under its current structure as a publicly traded company. Board of Directors has declared a special cash dividend of $4.50 per common share, payable on March 31, 2008, to shareholders of record on March 11, 2008.
08:06 WIRES On The Wires

Pixelworks (PXLW) announces the preliminary results of its “Modified Dutch Auction” tender offer for a portion of its outstanding 1.75% convertible subordinated debentures due 2024. Pixelworks expects to accept for payment $50 mln aggregate principal amount of convertible debentures plus $248,000 aggregate principal amount of convertible debentures pursuant to Pixelworks’ right to purchase up to an additional 2% of the outstanding convertible debentures without extending the tender offer in accordance with applicable federal securities laws at a purchase price of $740 per $1,000 principal amount, for a total cost of approximately $37,184,000… Huntsman (HUN) announces that it will increase prices globally for its MDI and polyurethanes systems products, in the face of rapidly escalating raw material feedstock costs, and the need to achieve re-investment economics against a background of accelerating global demand for MDI… OrthoLogic (OLGC) announces the initiation of dosing for its AZX100 Phase 1 human clinical trial in dermal/hypertrophic scarring.
08:05 CYMI Cymer: Lehman reduces ests and tgt to $27 (29.00 )

Lehman says with Gigaphoton continuing to pressure mkt share and pricing coupled with outlook for still weakening DUV unit volume ests and negative impact to 1H08 results from CYMI’s current immersion laser channel inventory, firm has lowered their below cons ests. Reducing PT to $27 from $30. Firm is reducing their CY08 rev/EPS ests to $483 mln/ $1.55 (consensus of $506 mln/$1.74).
08:04 Biotech: Companies having major expected catalysts in 1H08 - Brean Murray

Brean Murray says on March 6 they believe that OMRI will be able to provide some clarity on the thrombin market and assuage investor concerns about the importance of thrombin to OMRI. By March 10, they expect OMRI to also win the French smallpox antisera contract rather than competitor Cangene… Firm believes that the negative 1H08 catalyst for ZGEN is simply its 1Q08 quarterly results, given their strong belief that the co will not be able to win as many thrombin contracts from KG as it believes it can… Firm views PGNX as unique in the biotechnology sector, and presents investors with a rare, actionable, relatively low-risk, high-reward, long biotech stock play, which is based on methylnaltrexone’s (MNTX) multiple-shots-on-goal and their expectation of a high probability of success… Given the relative ease of busting clots in a catheter versus an artery or vein, firm expects that NUVO’s alfimeprase will succeed in catheter occlusion in 2Q08… Note firm also mentioned DSCO, XTLB, ADLR, KERX, MDVN, HYTM, UTHR.
08:04 DTSI DTS downgraded to Hold at Kaufman- tgt $22 (23.57 )

Kaufman downgrades DTSI to Hold from Buy and cuts their tgt to $22 from $30 following earnings. The firm says the good news is that revenues and EPS beat expectations and that there is a conclusion to the high defintion player battle. The bad news is the consumer is facing an economy that is increasingly under pressure. The firm says while they do expect over the next nine months or so that the pricing of the Blu-ray players will fall such that by the holiday 2008 timetable, players will be under $200 from today’s approximately $350 pricing; they also expect to see an increase in content in Blu-ray format
08:01 QDEL Quidel says the FDA grants CLIA waiver for its QuickVue RSV test (16.51 )

Co announces that the FDA granted CLIA waiver for the QuickVue RSV test for the qualitative detection of respiratory syncytial virus.
08:01 OSIP OSI Pharm reports intention to file shelf registration statement in connection with previously issued convertible notes (36.89 )

Co announces that it intends to file with the SEC a resale shelf registration statement on or before April 1, 2008 on Form S-3 pursuant to the terms of a registration rights agreement OSI entered into on Jan 9, 2008 in connection with the sale of its $200 million principal amount of 3% Convertible Senior Subordinated Notes.
08:01 AMGN Amgen: Judge blocks Anemia drug sales by an Amgen rival - NY Times (45.53 )

NY Times reports a federal judge has tentatively barred Roche Holding from beginning sales in the United States of an anemia medication that a jury found violates patents held by Amgen. But Judge William G. Young of Federal District Court in Boston said on Thursday that he was open to allowing sales of the drug, called Mircera, if Roche agreed to certain conditions, including paying a higher royalty to Amgen of 22.5% of the drug’s American sales, instead of the 20% royalty Roche had proposed earlier this month. Roche, based in Basel, Switzerland, also would have to guarantee that it would not charge higher prices than those for Amgen’s two top-selling anemia treatments, Aranesp, introduced in 2001, and Epogen, introduced in 1989.
08:01 MNI McClatchy reports Q4 impairment charges (9.84 )

Las night after the close, the co reported that it filed its Annual Report on Form 10-K for the year ended December 30, 2007 with the SEC, which includes its final fourth quarter and full year 2007 results. The co’s fourth quarter 2007 after-tax loss from continuing operations was $1.43 bln, or $17.42 per share including the effect of non-cash after-tax impairment charges related to goodwill and newspaper mastheads of $1.47 bln, or $17.86 per share. The company’s total net loss, including the results of discontinued operations, was $1.43 bln, or $17.46 per share.
08:00 SUF Sulphco announces co’s Former Chairman and CEO terminates SEC 10b5-1 Plan (4.24 )

Co announces the decision by the company’s former Chairman and CEO, Dr. Rudolf Gunnerman, to terminate his plan to sell up to 2.5 mln shares of company stock pursuant to Rule 10b5-1. In addition, Dr. Gunnerman and his wife have entered into a Stock Purchase Agreement, Stock Option Agreement and Lockup Agreement with certain investors dated as of February 26, 2008, which provide that the Gunnermans shall sell or grant options to the investors to purchase up to 4 mln shares of common stock of the company.
08:00 RY Royal Bank of Canada reports Q1 EPS down 17% yr/yr to $0.95; reports revs down 1% yr/yr to $5.647 bln (51.34 )

Co reaffirms Y08 EPS growth of 7-10%. Co’s Q1 earnings were reduced by a writedown in Capital Markets of $187 mln after-tax and related compensation adjustments, higher impaired loans in U.S. banking over last year, and a $45 mln impact over last year from strong appreciation of the Canadian dollar against the U.S. dollar.
07:59 RBS Royal Bank of Scotland downgraded to Underweight from Equal Weight at Morgan Stanley (8.14 )

07:57 S&P futures vs fair value: -17.4. Nasdaq futures vs fair value: -29.5.

Futures suggest the stock market is going to extend yesterday’s losses. Cautious comments from Dell (DELL) and a $5.3 billion fourth quarter loss from AIG (AIG) is fuelling the selling pressure. A CNBC commentator said the bailout of bond insurer Ambac (ABK) has hit a fairly significant snag over the amount of capital the consortium of banks are willing to put up, which is also weighing on sentiment. The commentator said this does not mean the situation is dead. The January personal income and spending report is set for release at 8:30 ET.
07:57 CNQ Canadian Natrl Res downgraded to Market Perform from Outperform at Raymond James (77.34 )

07:56 SWN SW Energy tgt raised to $75 at FBR (67.65 )

Friedman Billings raises their tgt on SWN to $74 from $64 to reflect their updated NAV, which now reflects 2.6 Bcf/well vs. their previous est of 2.0 Bcf/well. With shale production continuing to grow, expectation of average IP rates continuing to improve, and a good possibility of more strong IP results in weekly AOGC filings, firm believes that the positive news flow will continue. Additionally, they continue to believe that the real option value remains tremendous for more upside as completion techniques are further optimized.
07:56 GOL Gol Intelligent Airlines: Hearing downgraded to sell from neutral at tier 1 firm (17.86 )

07:55 Ricin may have been found in Las Vegas motel - WSJ

The WSJ reports that Las Vegas Metro Police and Homeland Security officials were investigating late Thursday a substance found at a motel, with preliminary tests indicating it was ricin. Officers were called to the Extended Stay America Motel and retrieved a package from the motel manager that was determined to be a chemical or controlled substance, said Officer Ramone Denby. Two preliminary tests indicated it was the poison ricin, Denby said. Three motel employees and another person were quarantined and decontaminated at the site, then taken to local hospitals for further testing. All appeared to be in good condition. Three police officers who had been exposed to the substance also were taken to hospitals. A third test would be conducted by the Centers for Disease Control, and the substance was being sent to a second local lab. Results of those tests should be known sometime Friday, Denby said.
07:55 WST West Pharm downgraded to Neutral from Buy at UBS (43.63 )

07:54 MF MF Global downgraded to Neutral from Buy at UBS (21.19 ) -Update-

07:54 Turkey begins withdrawing from Northern Iraq - WSJ

WSJ reports the Iraqi foreign minister said that the Turkish military has begun withdrawing from northern Iraq. “We welcome this move,” Hoshyar Zebari said in a telephone interview. “The timing is good. I think the military carried out its promises” to remove Turkish troops after finishing operations against Kurdish separatist rebels. Mr. Zebari said regional Iraqi authorities had informed him that the Turkish troops were leaving northern Iraq, and the Turkish military had targeted only the rebels, not civilians living in the remote region.
07:52 Airline consolidation: On hold for the time being - Calyon

Calyon notes a potential merger of DAL and NWA may be derailed because the unions representing the two pilot groups cannot agree on seniority rights, even though most other points have been worked out. The firm believes that keeping a good relationship with their pilots is even more important to Delta than engineering a merger. They say any DAL-NWA combination would have probably set off other mergers that would have led to consolidation of the fragmented U.S. airline industry, making the carriers more competitive with their foreign counterparts, which are also consolidating.
07:51 PAET PAETEC Holding initiated with a Buy at Deutsche Bank (7.95 )

07:50 NTT Nippon Telegr upgraded to Outperform from Neutral at Credit Suisse (21.47 )

07:49 New York is investigating ties between colleges, vendors - WSJ

WSJ reports expanding a probe that started with the student-loan industry, New York Attorney General Andrew Cuomo has begun investigating ties between colleges and the cos that provide their students with food, textbooks, health insurance and financial services. Benjamin Lawsky, special assistant to Mr. Cuomo, said the investigation is focused on whether, in making agreements with schools, vendors are making unethical payments to gain business. That could mean students aren’t receiving the best goods and services for their money, he said. “Many of these schools are strapped for money and this is an enormously lucrative area for them,” Mr. Lawsky said in an interview. “They are very susceptible to being influenced by the large amounts of money these businesses can offer” for access to students.
07:49 DELL Dell upgraded to Outperform at Friedman Billings - tgt $30 (20.87 ) -Update-

Friedman Billings upgrades DELL to Outperform from Market Perform with a $30 tgt following earnings. The firm thinks gross margins improve next quarter because of better service margins and more favorable component costs; they think E/Rs will start to fall for the next several quarters as Dell attacks its bloated opex; and based on valuation.
07:48 DT Deutsche Telekom upgraded to Hold from Sell at Citigroup (19.04 )

07:47 CCU Clear Channel: Providence sues WB over CCU deal - WSJ (32.49 )

WSJ reports a Providence Equity Partners affiliate sued WB to force the bank to finance the private-equity co’s revised purchase of a group of television stations from CCU. Wachovia on Friday sued to extricate itself from the transaction, arguing the changes mean the bank is no longer obligated to provide roughly $500 mln in financing towards the deal. In its lawsuit filed Thursday in Delaware Chancery Court, Providence affiliate Newport Television said Wachovia came down with a case of “lender’s remorse” - a twist on the “buyer’s remorse” claim typically levied against balky acquirers. “Wachovia’s irresponsible, unprofessional and unjustified conduct threatens to sabotage the completion of a transaction in excess of $1 billion,” Providence said in its complaint, a copy of which was obtained by DJ. Wachovia spokeswoman Christy Phillips-Brown said the suit “is completely without merit,” and said the bank will “vigorously defend it to protect the interests of our shareholders.”
07:47 WG Willbros Group downgraded to Add at Calyon (34.65 )

Calyon downgrades WG to Add from Buy after co reported Q4 EPS below consensus. Firm cites valuation, noting there is limited upside to their $39 tgt.
07:46 QSFT Quest Software: Correction (14.40 )

In our 6:22 comment we incorrectly reported Credit Suisse upgraded Quest Software (QSFT) when infact Credit Suisse upgraded Quest Diagnostics (DGX). Our previous comment has been changed.
07:45 ABK Follow up: CNBC commentator says bailout has hit a fairly significant snag but says this does not mean the situation is dead (11.80 ) -Update-

As mentioned at 7:37am, CNBC commentator says that the bailout of ABK has hit a fairly significant snag in recent days over the amount of capital that the consortium banks are willing to put in and how much capital the raters are needing to maintain ABK’s AAA. Says this doesn’t mean this deal wont get done, in fact people tell the commentator that ‘all the stops’ will get pulled and the deal will get done. Shows that there are significant hurdles in keeping the AAA rating and that the raters are playing ‘hard ball’. Says snag was hit Wednesday when raters said they wanted more capital given the structure that was proposed from the consortium of banks. Says the consortium and ABK are coming back with another proposal. Calls this a developing situation and does not mean this situation is dead.
07:44 PDE Pride Intl upgraded to Add at Calyon; tgt upped to $42 (35.93 )

Caylon upgraded PDE to Add from Nuetral and raised their tgt to $42 from $33 following the co’s earnings yesterday. The firm notes PDE reported 4Q07 EPS of $0.77, $0.21 above their and the consensus estimate of $0.56. PDE has built a robust revenue backlog of $7.7 bln on the back of new contracts signed for its drillships and semis.
07:44 DRQ Dril-Quip misses by $0.01, misses on revs; issues downside Q1 guidance (54.43 )

Reports Q4 EPS of $0.67, excluding a $0.11 tax benefit, $0.01 worse than the $0.68 First Call consensus; revs of $132.8 mln vs $137.89 mln First Call consensus. The co issues downside guidance, sees Q1 EPS of $0.62-0.72 vs $0.73 First Call consensus. Briefing.com note: We posted earnings earlier this morning from the co’s 10Q, we didn’t see the gain. The original post has been removed.
07:44 Borrowers abandon mortgages as prices drop - WSJ

WSJ reports as home prices plummet, growing numbers of borrowers are winding up owing more on their homes than the homes are worth, raising concerns that a new group of homeowners — those who can afford to pay their mortgages but have decided not to — are starting to walk away from their homes. Typically borrowers who turn in their keys are those who have run into financial trouble or need to relocate but can’t sell their homes. But mortgage-industry executives and consumer counselors say they are starting to see people who aren’t in dire financial straits defaulting on their mortgages because they don’t want to pay for properties that have negative equity. Many are speculators who had planned to quickly flip the home, but others appear to be homeowners who had second thoughts about their purchase. “It may not be a big thing yet, and hopefully it won’t be,” says David Berson, chief economist for mortgage insurer PMI Mortgage. But if it turns out to be a significant trend, he says, it means that “delinquencies and defaults could be higher than the industry is estimating.” Some borrowers feel they have no good alternative. A tight credit mkt has made it tough for would-be sellers to find buyers or for borrowers looking to lower their mortgage costs to refinance.
07:41 CGPI CollaGenex Pharm downgraded to Hold from Buy at Roth Capital - tgt $16.60 based on the announced Galderma merger, firm says new bidders improbable (16.31 )

07:39 NFP National Financial Partners downgraded to Market Perform at Keefe Bruyette (28.18 )

Keefe, Bruyette downgrades NFP to Market Perform from Outperform and lowers their tgt to $32 from $46, based on uncertainty resulting from Bob Carter’s resignation as President of NFPISI.
07:39 CVC Cablevision and Ticketmaster looking to acquire stakes in AEG Live - NY Times (27.90 +1.00)

NY Times reports the co and ticketing powerhouse Ticketmaster are negotiating to acquire significant stakes in the nation’s No. 2 concert promoter, AEG Live, people briefed on the talks said Thursday. AEG Live, the privately held corporation owned by Philip Anschutz, has long positioned itself as the chief rival of the concert giant Live Nation. The talks regarding AEG Live are sensitive and could collapse, according to the people involved, who spoke on condition of anonymity because the negotiations are continuing. Under one possibility discussed, Cablevision, led by James Dolan, would acquire 34% of AEG Live and Ticketmaster (IACI), controlled by Barry Diller, would get 15%, according to two people briefed on the talks. It is not clear that the various sides have settled on a valuation of AEG Live, but a research note Thursday from Richard Greenfield, an analyst at Pali Research, speculated that a 49% stake might be worth more than $200 mln. That would imply a valuation of about $400 mln.
07:38 GPS Gap: Color on quarter (19.45 )

Friedman Billings continues to recommend GPS shares as one of our favorite 18- to 24-month turnaround stories. The company announced 4Q07 EPS of $0.35, in line with the consensus of $0.35. The company gave FY08 guidance of $1.20 to $1.27 versus the Street at $1.24. The company guided to inventories per square foot to be down in the low teen range at the end of 1Q08; while this could limit the company’s ability to deliver positive comps, we believe it should greatly benefit gross margins. The company remains focused on fundamentals, including (1) inventory control, (2) margin enhancement, (3) cost containment, (4) free cash flow generation, (5) returning shareholder value through buybacks and dividends, and (6) improving financial metrics, including sales productivity and ROIC. Firm raises their 1Q08 from $0.26 to $0.29; FY08 from $1.16 to $1.26; raises tgt to $25 from $24… Citi says GPS reported 4Q07 GAAP EPS of $0.35 inline with their est. and consensus and at high end of $0.33-$0.35 guidance. Firm’s 4Q08’s GM was up +215bps. Better than expected gross margin fully offset by worse than expected SG&A, and net interest expense. Co issued conservative ‘08 EPS guidance of $1.20-$1.27 vs. street ests of $1.24. Firm maintaina their above guidance ‘08 EPS of $1.30, as they continue to see upside to conservative forecasts… Wachovia says EPS came in at $0.35, ahead of their expectations for Q4, driven by solid margin improvement. Gross margin increased 230 bps, driven by a 370 bps improvement in merchandise margins, an acceleration in the pace of margin recovery seen over the last two qtrs. Importantly, inventory remains well managed and mgmt expects inventory to be down in the low teens at the end of Q1.
07:37 ABK AMBAC Fincl: CNBC commetator says that the Ambac bailout hit a serious snag; says rating agencies demanded more capital from possible bailout banks (11.80 )

07:35 PPL PPL Corp revises FY07 lower by $0.05 (46.65 )

Co reports revised earnings of $3.35 per share for 2007, reflecting a net fourth-quarter impairment charge of $21 million, or $0.05 per share, related to a reassessment of its natural gas distribution and propane businesses. On January 31, 2008, PPL reported earnings of $3.40 per share for 2007.
07:34 ADLR Adolor reports Q4 EPS of ($0.22) vs ($0.26) consensus; reports revs of $3.7 mln vs $3.5 mln consensus (4.53 )

07:34 HANS Hansen Natural: Color on quarter (44.15 )

Citi says HANS had decent sales growth as net sales rose 63% to $247 mln vs. the $212 mln First Call est. The 4Q07 rev growth was an acceleration from 38% growth in 3Q07. Sales were driven by a buy-in ahead of the 1/1 price increase. Excl the buy-in, sales grew 49% in the quarter. Given sales growth volatility qtr to qtr, firm would be interested to see if the momentum improves throughout 1Q given Jan/Feb was impacted by a 4Q buy-in. Jan/Feb gross sales growth were up 33% vs. 62% in 4Q vs. and 36% in 3Q… Stifel reiterates their Buy rating on shares of HANS and increase their 4Q07, 2008, and 2009 EPS ests to $0.39, $2.10, and $2.50, respectively (from $0.36, $2.07, and $2.47, respectively). Firm does so after a series of conversations with industry and trade sources supporting their belief that the co continues gaining share in a growing category.
07:33 CPN Calpine reports FY07 revs of $7.97 bln vs $6.93 bln in yr ago period; EPS $5.62 vs ($3.6 in yr ago period (19.11 ) -Update-

07:33 MIR Mirant reports Q4 from continuing ops of $0.72, ex-items, vs $0.68 consensus; co reports revs of $409 mln (36.26 )

Co raised its 2008 adjusted EBITDA guidance from $907 to $925 mln and provided initial 2009 adjusted EBITDA guidance of $1.011 bln.
07:33 SGMS Scientific Games signs contract to provide 25,000 Leonardo/WAVE terminals to Sisal in Italy; rev estimated at $90 mln (19.64 )

Co announces it has signed a contract to provide 25,000 “next generation” Leonardo/WAVE terminals to Sisal. Terminal delivery and installation should begin in April 2008 and span over the next 36 months. The contract is expected to generate approximately $90 mln in revenue to Scientific Games over the course of three years.
07:32 TPX Tempur-Pedic announces planned retirement of CEO (18.82 )

Co announces that its President and Chief Executive Officer, H. Thomas Bryant, plans to retire from the co effective mid-year 2008. The Board of Directors has formed a committee to lead the search for a new CEO and has retained an executive search firm.
07:32 RGNC Regency Energy reports Q4 EPS of $0.00, includes charges, doesn’t comapre to the $0.24 First Call consensus; revs $325.0 mln vs $280.04 mln First Call consensus (29.64 )

07:31 DRQ prelim $0.66, ex charges, vs $0.68 First Call consensus; revs $132.8 mln vs $137.89 mln First Call consensus

07:31 GXDX Genoptix prices a 2.08 mln share common stock offering at $25.50/share (25.55 )

07:30 CPN Calpine announces CEO Robert May will leave the co once a successor is in place (19.11 )

07:30 RACK Rackable Systems says it has received a notice from Richard Leza regarding nomination of two candidates (9.52 )

Co says it had received a notice from Richard Leza regarding nomination of two candidates, himself and Steve Montoya for election to Board of Directors at the Company’s 2008 Annual Meeting of Stockholders. Leza informed the Company that he owns 2,600 shares out of the roughly 29.2 mln shares outstanding. Leza also submitted an advisory resolution for consideration relating to stockholder approval of executive compensation. “The Board’s Nominating and Governance Committee will review and evaluate the proposed nominees and the advisory resolution.”
07:29 AIG American Intl: Color on quarter (50.15 )

Wachovia says AIG reported its 4Q07 financial results after the close. The co posted a net loss of $5.3 bln or $2.08 per share. Included in this number are $2.1 bln of net realized capital losses and impairments and $7.2 bln of net unrealized market valuation losses associated with the co’s Financial Products business. It is firm’s sense that on a pretax basis both realized losses and unrealized market valuation losses are greater than market expectations. While the unrealized market valuation losses may well be recovered as the CDS written by AIG mature, they do not expect the co to recover much on its realized losses. Although AIG is bigger than any other co they cover, its realized losses far exceeded anything observed at other insurers in their universe… Citi says AIG reported a loss per share of $1.25. This fell below their est of no earnings. The AIGFP mark-to-market charge represented a $2.83 loss per share. BVPS declined to $37.87. The co has ceased its share repurchase program. Firm says core operations produced solid earnings; however, they note that reserve issues and declining rates in P&C are concerning. Life results showed earnings growth despite a DAC charge in its Domestic Retirement business. While firm expects the stock to be down in the pre-market, mgmt can better the stock price if they can give investors confidence that 1Q08 won’t duplicate 4Q07, a feat they are unlikely to achieve.
07:25 CMP Compass Minerals Intl profiled in New America section of IBD (57.94 )

IBD reports this winter is shaping up as one of the worst in recent memory. Much of the U.S., especially the Midwest, is a sheet of ice due to freezing temperatures and heavy snow. The rock salt commonly used for de-icing roads is mined by CMP. Frequent snowstorms at the end of the quarter throughout its de-icing markets in North America created above-average demand for highway, consumer and professional de-icing products, says CFO Rodney Underdown. Compass manages its inventories closely at its salt mines, and it can raise or lower its production profile over the course of the year, Underdown says. It maintains flexible labor contracts that allow it to scale back its work force when it’s not a productive season. This means that in slower times, Compass doesn’t suffer penalties from big severances or layoff packages. Workers are covered by labor contracts that encourage the co to rehire them when business picks up. The U.S. accounts for about 60% of Compass’s de-icing business. But salt is in short supply in many areas hit by severe weather… Compass is expanding its potash facility at Utah’s Great Salt Lake. Its specialty potash has a sulfur element and is primarily used for high-value crops, including tobacco, wine grapes, citrus fruits, vegetables and nuts. Tight supplies of both kinds of potash have jacked up prices. When the standard of living rises in emerging economies, the first thing people tend to change is their diet. It’s a diet that upgrades from basic staples, such as rice, to one that now includes proteins and a wider variety of crops.
07:24 TMA Thornburg Mortg: Margin calls constrain liquidity, but dividend secure - FBR (9.76 )

Friedman Billings says TMA reported in its 10-K that credit market disruptions resulted in $300 mln of margin calls in Feb. TMA has met all margin calls, but further margin calls could necessitate asset sales. Today, they est that TMA has approx $150 mln of excess liquidity to satisfy future margin requirements. Although they conclude that this will be sufficient for the immediate future, firm believes that TMA will need additional capital to buffer against the risk of further margin calls, and the sooner the better. The ultimate impact of continued market disruptions will depend on how TMA’s securities trade-if they bounce back, TMA will be fine. If they continue to fall in value, TMA’s book value may decline. Firm believes TMA’s continued strong credit quality is a differentiating factor from the other mortgage players and justifies a premium valuation.
07:24 TASR TASER: Merriman increasing Q1 rev est on continued penetration of existing customers and new police department wins (11.75 )

Merriman believes TASR has developed the dominant less-than-lethal weapon — without any credible competition. Even so, they est TASR has penetrated only 25-30% of the domestic law enforcement market and less than 5% worldwide. In addition, the successful launch of the TASER C2 brings the consumer opportunity back into play. Based on firm’s assumption of quarterly “base revenues” in the $22.0-23.0 mln range and including their 1Q est of $2.5 mln in TASER C2 sales and the $3.4 mln in announced orders, firm is increasing their 1Q rev est to $28.4 mln from $27.3 mln — which remains well above the consensus est of $25.9 mln. To be conservative on increased spending around the launch of TASER C2 direct marketing, firm is maintaining their 1Q EPS est of $0.05. Firm’s FY08 rev est moves to $131.0 mln from $129.9 mln.
07:23 XTNT Xtent: Merriman believes custom NX could fare well against Taxus, Endeavor and Xience V (7.25 )

Merriman says XTNT is awaiting FDA clearance to begin its IDE trial. While the exact details of CUSTOM IV remain unknown, the trial will require that XTENT compare its Custom NX platform against an approved DES. While they believe Taxus is the ideal control, a comparison of the existing CUSTOM II data to that from the Endeavor, Spirit or Taxus trials leads us to believe that the Custom NX can fare well against any of these products in a head-to-head trial.
07:23 FRE Freddie Mac: Market remains tough and capital under pressure - FBR (24.49 )

Friedman Billings reiterates their Underperform rating on FRE as current valuation does not reflect the credit headwinds or the capital constraints the co is facing. FRE reported a significant 4Q07 earnings loss of $3.97 per share, reflecting losses on credit guarantees and derivative instruments. FRE’s earnings are difficult to understand due to market value fluctuations, and the recent accounting changes related to the guaranty obligation and the resulting restatement for the prior quarters don’t make it easier for investors to decipher the co’s earnings picture. One thing is clear, though: pressure on capital persists and firm expects further capital losses of $2-$3 bln in 1H08, restraining growth potential for the co. They expect FRE to preserve capital and focus on growing its credit guaranty book prudently, which requires less capital than growing the portfolio.
07:23 AMCN Airmedia initiated with an Outperform at Oppenheimer- tgt $25 (18.21 )

Oppenheimer initiates AMCN with an Outperform and sets a $25 tgt, based on more competitive pricing than peer Focus Media, China’s air travel market that is growing at a fast pace, a highly scaleable business model that should see increased margins and the firm’s view that shares present a play on the Beijing Olympics.
07:22 GILD Gilead Sciences: Impact of trials to be discussed with expert; think there is upside to Truvada - FBR (45.46 )

Friedman Billings says yesterday the National Institute of Allergy and Infectious Diseases announced that Epzicom in high viral load patients was found to be inferior to Truvada-containing regimens in the 1,858-patient ACTG 5202 trial. This announcement combined with recent results from the DAD trial will likely drive lowered usage of Epzicom and a potential revision of the HHS guidelines, which currently has Epzicom and Truvada at an equal status. If 50% of Epzicom’s average U.S. weekly prescriptions goes to Truvada, there could be 20% upside to U.S. Truvada sales.
07:22 ESEA Euroseas upgraded to Buy at Cantor Fitzgerald- tgt $18 (12.98 )

Cantor Fitzgerald upgrades ESEA to Buy from Hold with an $18 tgt following earnings and their expectation of continued strong earnings growth in 2008.
07:22 DELL Dell: Color on quarter (20.87 )

Citi says DELL’s 4FQ margin was pressured by a negative mix shift towards an unprofitable U.S. consumer business and additional expenses from recent acquisitions/investments. Firm believes the co’s disproportionate exposure in U.S. corporate (40% of revs, 50% of operating profit) and negative margins in consumer could continue to weigh on the shares near-term. However, they see the shares rebounding to their tgt of $27 as cost-cutting, and supply chain improvements bear fruit in 2H… Thomas Weisel says DELL reported disappointing F4Q08 rev and EPS relative to TWP and street ests. Additionally, the co provided weak qualitative guidance citing ongoing restructuring. Despite evidence of progress in gross headcount reduction for non-frontline oriented operations, Dell’s acquisition spree has neutralized efforts to reduce overall SG&A. Firm believes that efforts to deliver gradual improvement in operating margins are challenged by Dell’s simultaneous move to a channel sales for consumer products and steps to integrate recent acquisitions. Firm reduces their FY09 EPS est despite an unchanged rev assumption of $63.3 bln due to 1) a $50 mln increase in their opex expectations for FY09, 2) the inclusion of SBCE previously excluded from their EPS est, and 3) a 10% reduction in share count. Firm also cuts their tgt from $26 to $24… Robert Baird maintains their Neutral rating on Dell following slightly weaker- than-expected FQ4′07 results. Mgmt did not provide guidance though cautioned near-term performance may be impacted by realignment activities. Firm sees limited downside at current levels, but would look for progress toward cost cutting and new go-to-market initiatives to get more aggressive on the shares.
07:22 CMLS Cumulus Media reports Q4 (Dec) results, beats on revs; guides Q2 (Jun) revs above consensus (5.54 )

Reports Q4 (Dec) earnings of $3.27 per share, may not be comparable to the First Call consensus of ($0.04); revenues rose 4.0% year/year to $87.8 mln vs the $86 mln consensus. Co issues upside guidance for Q2 (Jun), sees Q2 (Jun) revs ‘paring up 3%’, which equates to $90.43 mln vs. $86.30 mln consensus. Q4 earnings includes multiple charges.
07:19 BE BearingPoint reports Y07 (1.63 )

Co reports Y07 EPS of ($1.68), may not compare to ($0.40) consensus; co reports revs up 0.3% yr/yr to $3.46 bln vs $3.46 bln consensus. Co sees Y08 revs flat or slightly up yr/yr.
07:19 JOEZ Joes Jeans reports Q4 EPS of $0.02 vs $0.02 single estimate; revs +29% yr/yr to $18.07 mln vs $15.89 mln single estimate (1.15 )

07:17 Dollar falls to weakest in three years against yen and record low vs euro - Bloomberg.com

Bloomberg.com reports the dollar falls to weakest in three years against yen and record low vs euro. The euro pared gains against the U.S. dollar after earlier trading at a record high for a fourth day.
07:17 MBI MBIA Inc files 10-K, says it is expected that recent developments will result in additional material mark-to-market losses for January 2008 (14.06 )

From today’s 10-K filing: “In the fourth quarter of 2007, we observed a further widening of market spreads and credit ratings downgrades of collateral underlying certain MBIA Corp.-insured CDO tranches. The mark-to-market loss from September 30, 2007 to December 31, 2007 was $3.4 bln, or approximately $2.2 bln on an after-tax basis. This increase in our mark-to-market loss in the fourth quarter of 2007 compared to the pre-tax $342 mln mark-to-market loss for the third quarter was a consequence of continued spread volatility, including a substantial widening in CMBS spreads and the deterioration of credit ratings in collateral underlying multi-sector CDOs… The mark-to-market position as of January 31, 2008, is not available at this time. However, in January 2008 we observed further widening of credit market spreads and, on January 30, 2008, S&P announced rating action on 6,389 U.S. subprime RMBS ratings and 1,953 CDO ratings and on February 1, 2008, Fitch announced a rating action on 2,972 RMBS ratings. It is expected that these developments will result in additional material mark-to-market losses for January 2008… Currently, as a result of the existing market volatility caused by the deterioration in the subprime mortgage market, the tightening of available liquidity, and the recent rating agency actions described herein, the demand for our product is the lowest it has been and we are writing very little new business. At the same time, our exposure to the existing credits in our insured portfolio continues to decline as such obligations mature, thereby increasing our available capital.”
07:16 INAP InterNAP downgraded to Sector Perform from Outperform at RBC (7.54 )

07:16 Munis have worst month since ‘03 on auction-rate woes - Bloomberg.com

Bloomberg.com reports U.S. municipal bonds are headed for their worst month in more than four years after collapsing demand for securities with rates set at periodic auctions sent debt costs for state taxpayers and hospitals as high as 20%. State and local govt bonds fell 4.17% through yesterday, including reinvested interest, based on Merrill Lynch data. That’s the most since July 2003, when they tumbled 4.59%. Florida had to pay 5.35% yesterday to sell 30-year fixed-rate general obligation bonds, almost three- quarters of a percentage point more than at its Feb. 6 sale. The $330 bln auction-rate market froze after dealers stopped purchasing the bonds when buyers failed to bid. Their lack of support has spread to the broader tax-exempt market, sending yields soaring. Borrowers from California to New York City plan to convert the securities to longer-term debt, raising concern that a flood of bonds will overwhelm already sparse demand from banks and hedge funds.
07:14 DFT Dupont Fabros Tech reports results post IPO; guides in-line for FY08 (17.10 )

Co reports for the period from October 24, 2007 to December 31, 2007, the Company reported a net loss of $99.3 million, or $2.80 per diluted common share, which included several one-time related charges including $176.5 million related to the acquisition of property management, development, leasing, asset management and technical services agreements and arrangements noted above and $13.4 million of non-cash stock based compensation costs at the time of the IPO. Adjusted Funds from Operations for the period from October 24, 2007 to December 31, 2007 was $8.1 million, or $0.12 per diluted common share and unit. For the period from January 1 to October 23, 2007, the Company’s Predecessor reported a net loss of $1.6 million. Co issues in-line guidance for FY08 (Dec), sees funds from operations of $1.20-1.30 vs. $1.23 First Call consensus.
07:13 AGO Assured Guaranty: Wilbur Ross appears on CNBC; calls capital they put into AGO ‘opportunity’ capital as opposed to ‘damage curing’ capital (22.78 ) -Update-

Wilbur Ross appears on CNBC to discuss his equity purchase in AGO. Says they started talking with AGO’s CEO a couple weeks ago about this. Says they have looked at quite a few of the financial guaranteed cos. Says ‘other ones’ need capital to simply preserve AAA rating status. AGO can use the capital to help propel it to a new level (calls it ‘opportunity’ capital as opposed to ‘damage curing’ capital). Believe there will be consolidation within financial guarantee sector. Says there is a need for re-insurance. Thinks they will end up putting capital through AGO to others, either through re-insurance treaties or direct purchase. Says this is a different way of getting into the ‘weaker ones’. Says still in discussions with other people in the industry as is AGO on its own. Thinks this is the most efficient way for them to participate in the rehabilitation and consolidation in the industry. Says ’sure’ they are in competition with Warren Buffet. Says people have too much blind faith in ratings.
07:13 WPPGY WPP Group plc reports Y07 EPS up 8% yr/yr to 38.0p; co reports revs up 4.7% yr/yr to GBP 6.186 bln (61.09 )

07:11 DF Dean Foods announces share offering; Reiterates Q1 guidance of $0.15-$0.20 vs $0.19 First Call Consensus and reiterates FY08 guidance of at least $1.20 vs. $1.30 First Call consensus (22.99 )

The co announces that the co has agreed to sell approximately 18.7 mln shares of common stock in a registered public offering underwritten by Lehman Brothers. The offering increases fully diluted shares outstanding by approximately 13%. The sale is expected to close on March 5, 2008, subject to customary closing conditions. The Company intends to use the proceeds from the sale to reduce debt outstanding under its senior credit facility and for general corporate purposes, including potential future investments or strategic acquisitions… The co expects application of the proceeds of this offering will reduce interest expense for the balance of the year by approximately $20 mln in 2008. This reduction in interest expense should significantly offset the dilution from the increase in shares outstanding, resulting in only a modest impact on 2008 earnings per share. As a result, the co is reiterating its previously issued guidance of between $0.15 and $0.20 per share for the first quarter and at least $1.20 per share for the full year 2008.
07:11 CMLS prelim $3.56, not comparable, vs ($0.04) First Call consensus; revs $84.4 mln vs $86.03 mln First Call consensus

07:10 SEPR Sepracor beats by $0.12, reports revs in-line; guides FY08 EPS below consensus, revs above consensus (22.84 )

Reports Q4 (Dec) earnings of $0.65 per share, excluding non-recurring items, $0.12 better than the First Call consensus of $0.53. LUNESTA brand eszopiclone revenues grew to $149.8 million in the fourth quarter of 2007 compared to $147.6 million for the same quarter in 2006, XOPENEX $142.4 mln vs $176.3 mln in yr ago period; XOPENEX $24.9 mln vs $20.9 mln in yr ago period; BROVANA $6.3 mln. Co issues mixed guidance for FY08, sees EPS of $1.40-1.80 vs. $2.28 consensus; sees FY08 revs of $1.35-1.45 bln vs. $1.34 bln consensus.
07:08 ICFI ICF International initiated with a Equal Weight at boutique firm (25.86 )

07:07 PP Prentiss Prop announces it completes Type A meeting with FDA for Oral Tetrathiomolybdate New Drug Application (1.14 )

Co announces that it has completed a Type A meeting with the FDA regarding its previously submitted New Drug Application for oral tetrathiomolybdate for the treatment of initially presenting neurologic Wilson’s disease. In response to a refusal to file notice regarding PP’s NDA submission received from the FDA on Jan 28, 2008, PP requested and was granted a meeting with the FDA to discuss the issues raised in the R.T.F. letter. The outcome of the meeting with the FDA earlier this week, PP received resolution and guidance on the following R.T.F. issues: 1) FDA agreed that with some revisions, PP’s proposed analytical plan and methodology to characterize the active pharmaceutical ingredient for T.T.M. should be sufficient for filing the NDA; 2) The FDA agreed to allow this preclinical reproductive toxicology study to be conducted as a post-approval commitment; 3) The FDA agreed with PP’s plan to rectify the formatting and presentation deficiencies contained within the NDA filing; 4) PP and the FDA agreed that these items would be considered review items by the FDA for a refiled N.D.A.
07:06 AVAV AeroVironment initiated with an Overweight at boutique firm (21.91 )

07:06 CC Circuit City: Wattles Capital Mgmt submits business proposals for consideration by shareholders at CC’s 2008 annual meeting (4.53 )

Wattles Capital Mgmt announces that it has delivered a letter to CC submitting two business proposals for consideration by shareholders at the 2008 Annual Meeting, currently scheduled to be held on June 24, 2008. Wattles Capital Mgmt, which beneficially owns 11 mln shares of common stock (constituting ~6.5% of the Shares outstanding), detailed its intention in a written notice to the Corporate Secretary of Circuit City. In the notice letter, Wattles Capital Mgmt submitted a proposal to remove each member of the Circuit City Board at the Annual Meeting other than the five directors nominated by Wattles Capital Mgmt, and a proposal to repeal any bylaw amendments or new bylaws that the Circuit City Board may adopt without first seeking shareholder approval.
07:05 MF MF Global: Moody’s downgrades MF Global; continues to review (21.19 )

Moody’s downgraded the long-term issuer rating of MF Global to Baa1 from A3. The rating was also placed on review for a possible further downgrade. This rating action was in response to MF Global’s announcement that it incurred $142 mln in losses due to unauthorized trading in wheat futures by one of its employees in his own account. The account did not have sufficient funds, and MF Global, as a clearing broker for the trades, had to settle the contracts out of its own account and, consequently, incurred the loss. In Moody’s view, the failure of MF Global’s systems to prevent the placement of trades in an account with insufficient funds, represents a serious breakdown of risk controls. Risk management had been viewed by Moody’s as one of the chief strengths of MF Global’s credit profile. Another factor contributing to the downgrade is a relative weakening of the quality of MF Global’s capital structure and liquidity profile as a result of its not having refinanced its $1.4 bln in bridge loans with permanent long-term capital. During its review Moody’s will also focus on MF Global’s plans to achieve a stable long-term capital structure, which would help to ensure a strong long-term liquidity profile.
07:05 SUG Southern Union reports Y07; guides FY08 EPS in-line (28.13 )

Co reports Y07 EPS of $1.70, excluding non-recurring items, vs $1.75 consensus; reports revs of $2.62 bln vs $2.54 bln consensus. Co issues in-line guidance for FY08, sees EPS of $1.80-1.90 vs. $1.89 First Call consensus.
07:05 SIL Apex Silver Mines reports 2007 results (13.79 )

Co reports 2007 EPS of $0.20 vs ($9.09) in 2006; revs of $45.9 mln. For the year ended December 31, 2007, the company recorded a gain related to its metals derivative positions in the amount of $19.3 mln, compared to a loss of $715.1 mln on its derivative positions for 2006. During the fourth quarter 2007 the company liquidated auction rate securities (ARS) investments with a cost basis of $19.5 mln for $15.7 mln for a loss of $3.8 mln, and for the year the company recorded a $30.7 mln impairment charge to earnings on the remaining ARS investments it held with an original cost of $52.2 mln resulting in a carrying value of $21.5 mln at December 31, 2007. The company does not anticipate liquidating the remaining ARS investments during the next twelve months and has classified them as long-term investments at December 31, 2007.
07:05 IPG Interpublic beats by $0.09, reports revs in-line (8.41 )

Reports Q4 (Dec) earnings of $0.31 per share, $0.09 better than the First Call consensus of $0.22; revenues rose 5.6% year/year to $1.98 bln vs the $2 bln consensus. Co said, “While organic revenue performance in the fourth quarter moderated relative to very strong results in Q2 and Q3, we see no evidence of a pullback in 2008.”
07:04 TRAK DealerTrack upgraded to Overweight from Neutral at J.P Morgan (20.78 )

07:04 CDL prelim $0.05, ex charges, vs $0.07 First Call consensus; revs $245.5 mln vs $246.46 mln First Call consensus

07:04 CALLS Early Research Calls III

Upgrades: RBC upgrades Deckers Outdoor (DECK 126.46) to Outperform from Sector Perform. Downgrades: Lehman downgrades European Leisure Stocks to Negative from Positive… Bear Stearns downgrades CPFL Energia SA (CPL 66.95) to Peer Perform from Outperform… Credit Suisse downgrades MF Global (MF 21.19) to Neutral from Outperform following the announcement of a material bad debt provision. The firm says the magnitude of the trading loss is clearly disconcerting and calls into question the degree of risk taking/risk management at the franchise. While it appears the customer business has been largely unaffected, The firm sees a heightened risk profile for MF shares in the near-tointermediate term. Miscellaneous: Wachovia initiates Seaspan (SSW 29.40) with a Market Perform… Morgan Stanely initiates Dice Holdings (DHX 7.10) with an Equal Weight… Oppenheimer initiates Intellon Corp (ITLN 5.5 with an Outperform and an $8 tgt saying Intellon has built an impressive leading position in HomePlug, and is an important player in the growing digital networked home. The firm believes the co has excellent growth prospects in both the service provider and retail adapter markets, and longer term in markets such as broadband access and utilities.
07:03 WR Westar Energy sees Y08 EPS of $1.50-1.65 vs $1.45 consensus (23.10 ) -Update-

07:02 IPG prelim $0.31 vs $0.22 First Call consensus; revs $1.98 bln vs $2.00 bln First Call consensus

07:02 SUG sees FY08 $1.80-1.90 vs $1.89 First Call consensus

07:02 SUG prelim reports Y07 EPS of $1.70 vs $1.75 consensus; reports revs of $2.62 bln vs $2.54 bln consensus

07:02 SEPR sees FY08 $1.40-1.80 vs $2.28 First Call consensus; sees revs $1.35-1.45 bln vs $1.34 bln First Call consensus

07:01 SEPR prelim $0.65, ex items vs $0.53 First Call consensus; revs $340.0 mln vs $341.78 mln First Call consensus

06:58 HBC HSBC Holdings gets $3.2 billion bid for French regional units - Bloomberg.com (77.44 )

Bloomberg.com reports HSBC Holdings may sell its French regional consumer banking network to Banque Federale des Banques Populaires for $3.2 billion as it focuses on faster growth in French cities and emerging markets. HSBC is in exclusive talks and has got a “firm” cash offer for what would be its biggest sale ever. “This offer is an opportunity for HSBC to redeploy capital to other investments as we pursue our strategy and rebalance our activities towards emerging markets and faster growing business segments.”
06:49 CSAR Caraustar reports Q4 (Dec) results, beats on revs (2.78 )

Reports Q4 (Dec) loss of $0.13 per share, excluding charges, may not be comparable to the First Call consensus of $0.05; revenues rose 0.4% year/year to $203.9 mln vs the $197.6 mln consensus.
06:42 BIDU Baidu.com to launch instant messaging product (253.00 ) -Update-

Co announces its intention to launch an instant messaging service, called “Baidu Hi.”
06:36 WPCS WPCS Intl lowers Y08 guidance (6.91 )

Co issues downside guidance for Q3 (Jan), sees EPS of $0.05 vs. $0.17 First Call consensus. Co issues downside guidance for Q4 (Apr), sees EPS of $0.22 vs. $0.24 consensus. Co lowers guidance for FY08 (Apr), sees EPS of $0.62, compared to previous guidance of $0.88, vs. $0.75 consensus; sees FY08 (Apr) revs of $106 mln, compared to previous guidance of $107 mln, vs. $105.32 mln consensus. “WPCS experienced a setback in the third quarter from a financial results perspective based primarily on some of our subsidiaries being affected by significant project delays. However, the results are specific to the third quarter and do not indicate that there is an overall downturn in our business.
06:36 XTXI Crosstex Energy beats by $0.09, beats on revs (35.44 )

Reports Q4 (Dec) earnings of $0.17 per share, $0.09 better than the First Call consensus of $0.08; revenues rose 50.2% year/year to $1.09 bln vs the $1.06 bln consensus.
06:35 XTEX Crosstex Energy beats by $0.15, beats on revs (30.58 )

Reports Q4 (Dec) earnings of $0.19 per share, $0.15 better than the First Call consensus of $0.04.
06:34 CALLS Early Research Calls II

Downgrades: Merrill downgrades Valeant (VRX 14.43) to Neutral from Buy… RBC downgrades EOG Resources (EOG 124.73) to Underperform from Sector Perform… Miscellaneous: Morgan Keegan initiates Genesis Energy, LP (GEL 21.94) with a Market Perform, as units appear to be overvalued relative to other MLPs, considering the acquisition and financial environment and based on regressing distribution growth outlook vs yield while catalysts for growth include drop-downs from Denbury Resources and cost of capital advantage on acquisitions in the near term… JP Morgan removes Dean Foods (DF 22.99) from its Focus List… Broadpoint initiates Rubicon Technology (RBCN 28.99) with a Buy and sets a $35 tgt, based on its position as the leading supplier of high-quality specialty sapphire substrates for the light emitting diodes, radio frequency integrated circuits (RFICs), and other optical markets and estimate that the total market opportunity for sapphire wafers was close to $300 mln in CY07, and could grow 30%-40% year-over-year rate over the next several years.
06:32 MGLN Magellan Health beats by $0.12, reports revs in-line; reaffirms FY08 EPS guidance, revs guidance (42.17 )

Reports Q4 (Dec) earnings of $0.78 per share, $0.12 better than the First Call consensus of $0.66; revenues rose 42.6% year/year to $658 mln vs the $660.2 mln consensus. Co reaffirms guidance for FY08, sees EPS of $1.88-2.34 vs. $2.15 consensus; sees FY08 revs of $2.53-2.66 bln vs. $2.62 bln consensus.
06:31 ADBL Audible beats by $0.01, may not be comparable, and beats on revenue (11.45 )

Reports Q4 (Dec) earnings of $0.03, excluding a tax benefit, $0.01 better than the First Call consensus of $0.02; revenues rose 34.2% year/year to $31.14 mln vs the $29.08 mln consensus. Briefing.com note: We arrive at $0.03/share by reducing the $3.148 mln tax benefit from net income of $3.952 mln. Diluted shares total 24,406,910. Including benefit, EPS is $0.16.
06:30 WR Westar Energy misses by $0.01, beats on revs (23.10 )

Reports Q4 (Dec) earnings of $0.14 per share, $0.01 worse than the First Call consensus of $0.15; revenues rose 14.5% year/year to $392.8 mln vs the $369.2 mln consensus.
06:30 Growth fears hit Europe shares, Swiss Re bucks trend

Financials led European shares lower on Friday as investor concern grew over the outlook for economic growth, prompting a safe-haven switch into the telecoms and food and drinks sectors. Swiss Re, the world’s largest reinsurer, was among the few gainers in the financial sector, rallying 4.4% after its results beat expectations and the company raised its dividend. By 1015 GMT, the pan-European FTSEurofirst 300 index was down 0.4% at 1,328.29 points. The index declined 1.8% on Thursday and has lost 11.5% since the beginning of the year. Germany’s DAX fell 0.3% and was the weakest performer among its European counterparts, with Britain’s FTSE 100 index and France’s CAC 40 both down 0.2%. (Reuters)
06:30 Japan stocks down 2 pct, hit by yen and economy fears, HK shrs fall as HSBC weighs; Sensex ends down 246pts

Japan’s Nikkei average fell 2.3% on Friday to a one-week closing low, with Sony and other exporters taking a beating on a clouded earnings outlook after the dollar touched a three-year low against the yen. Growing worries about the U.S. economy weighed on the Japanese market after Federal Reserve Chairman Ben Bernanke warned about the health of small U.S. banks, which hurt financial shares such as Mizuho Financial. Hong Kong blue chips fell 1.1% on Friday as investors were sullen after the Federal Reserve chairman offered a downbeat outlook on the U.S. economy, while the latest estimate of U.S. economic activity confirmed growth was glacial in the last quarter. But February was an improvement over last month, when shares sank to August lows, with the market posting its best monthly gain since October. The benchmark Hang Seng Index ended down 1.1% at 24,331.67, but rose 3.7% for the month. The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, rose 11.6 in February though it finished the day down 0.8% at 13,931.88… The Sensex recovered 320 points from the day’s low of 17,258 to close with a loss of 246 points at 17,579. Finance Minister P Chidambaram presented his fifth budget for the UPA government today, but was unlucky the third time in terms of market reaction indicating strong resistance from investors on the increase in short-term capital gain tax from the current rate of 10% to 15%. Selective buying at lower levels saw the Sensex finally end with a loss of 246 points at 17,579. (Reuters, Business Standard)
06:25 WCRX Warner Chilcott PLC beats by $0.04, beats on revs (16.70 )

Reports Q4 (Dec) cash earnings of $0.30 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.26; revenues rose 7.9% year/year to $222.7 mln vs the $219.5 mln consensus.
06:22 CALLS Early Research Calls I

Upgrades: Lehman upgrades Pfizer (PFE 22.55) to Equal-weight from Underweight… UBS upgrades Repsol (REP 35.35) to Buy from Neutral… Credit Suisse upgrades Quest Diagnostics (DGX 47.8 to Outperform from Neutral… Merrill Lynch upgrades Enbridge Energy Partners LP (EEP 49.75) to Buy from Neutral… UBS upgrades Entergy (ETR 104.37) to Buy from Neutral. Downgrades: Deutsche Bank downgrades RH Donnelley (RHD 9.34) to Sell from Hold… Lehman downgrades MF Global (MF 21.19) to Equal-weight from Overweight… Keefe, Bruyette downgrades AIG (AIG 50.15) to Market Perform from Outperform and lowers their tgt to $53 from $55, following Q407 results and based on concerns over deteriorating profits trends, largely in the P&C operations… Oppenheimer downgrades GrafTech Int’l (GTI 17.85) to Perform from Outperform, following Q407 results and FY08 that were ahead of forecasts and based on a lack of near-/intermediate-term catalysts… HSBC downgrades Novartis (NVS 50.61) to Underweight from Neutral… Bear Stearns downgrades Omnicare (OCR 23.10) to Peer Perform from Outperform… Bear Stearns downgrades RH Donnelley (RHD 9.34) to Peer Perform from Outperform… Deutsche Bank downgrades BEA Systems (BEAS 19.05) to Hold from Buy and maintains their $19.38 tgt, following Q407 revenue and EPS that exceeded consensus and believe Oracle’s acquisition of the co will close in April.
06:20 IART Integra sees Q4 EPS at top end of range; reports Q4 revs above consensus; delays full results review of material weakness; guides in-line for FY08 (39.84 )

Co sees Q4 (Dec) earnings of at or above the top end of $0.45-0.50 per share, excluding non-recurring items, vs the $0.46; co reports revenues rose 25.7% year/year to $157.6 mln vs the $152.4 mln consensus. The company has not released its financial statements for the fourth quarter and year ended December 31, 2007 primarily because it is still completing the review and approval of certain account reconciliations, its tax provision for the quarter and year, and deferred tax balance sheet accounts. Co issues in-line guidance for Q1 (Mar), sees EPS of $0.39-0.42, excluding non-recurring items, vs. $0.40 consensus; sees Q1 (Mar) revs of $150-155 mln vs. $152.44 mln consensus. Co issues in-line guidance for Q2 (Jun), sees EPS of $0.45-0.48, excluding non-recurring items, vs. $0.47 consensus; sees Q2 (Jun) revs of $159-164 mln vs. $159.90 mln consensus. Co issues in-line guidance for FY08 (Dec), sees EPS of $2.00-2.15, excluding non-recurring items, vs. $2.06 consensus; sees FY08 (Dec) revs of $635-655 mln vs. $639.18 mln consensus.
06:19 S&P futures vs fair value: -14.6. Nasdaq futures vs fair value: -27.0.
06:19 European Markets

FTSE…5920.30…-45.40…-0.8%. DAX…6794.74…-67.78…-1.0%.
06:19 Asian Markets

Nikkei…13603.02…-322.49…-2.3%. Hang Seng…24331.67…-260.02…-1.1%.
06:12 IWA Iowa Telecom misses by $0.01, beats on revs (15.92 )

Reports Q4 (Dec) earnings of $0.19 per share, $0.01 worse than the First Call consensus of $0.20; revenues rose 2.6% year/year to $61.4 mln vs the $60.1 mln consensus.
06:10 AGO Assured Guaranty announces commitment by Wilbur Ross to purchase up to $1 bln of common equity (22.78 )

Co announces that it has signed an agreement for WL Ross & Co. LLC to purchase $250 mln of common shares of Assured and to provide a commitment to purchase up to $750 mln of additional common shares of Assured at the option of the co. The purchase price per common share for the initial investment will be the higher of (i) 97% of the average of $22.43 (the closing price on Friday, February 22, 200 and the average closing price for Friday, February 29, 2008 and Monday, March 3, 2008, or (ii) $21.76 (97% of $22.43). A condition to closing the initial investment is that Wilbur Ross, Chairman and Chief Executive Officer of WL Ross, will be appointed to the Board of Directors.
06:07 WIRES On The Wires -Update-

AstraZeneca (AZN) announces the submission of a supplemental New Drug Application to the FDA for once-daily SEROQUEL XR Extended-Release Tablets to seek approval for the treatment of major depressive disorder as monotherapy, adjunct therapy, and maintenance therapy in adult patients… Arrow Electronics (ARW) announces they have signed a definitive agreement pursuant to which Arrow will purchase the components distribution business from parent co Achieva Ltd.; Arrow anticipates the transaction will be immediately accretive to earnings in the first twelve months by $.01 to $.03 per share.
05:50 BIDU Baidu sued over music copyrights - AP (251.70 )

AP reports Baidu (BIDU) has been sued by a local music industry group for alleged copyright violation, the second recent similar action from the industry, the group said. In a statement on its Web site Friday, the Music Copyright Society of China quoted official Qu Jingming as accusing Baidu of ”providing music listening, broadcasting and downloading services in various forms on its Web site without approval, and through unfettered piracy, earning huge advertising revenue on its huge number of hits.” The industry group said Baidu’s piracy forced legitimate online music providers to shut down. The group said in the statement dated Thursday that it filed a lawsuit against Baidu in a Beijing court in January, alleging it illegally used 50 songs and demanding compensation
05:46 MSFT Microsoft cuts Vista prices to urge upgrades - Reuters (27.93 )

Reuters reports Microsoft (MSFT) said on Thursday it plans to cut prices of its Windows Vista operating system sold at retail outlets in a move aimed at pushing customers to switch to the newest version of Windows. The co said it plans to lower retail prices for Vista in 70 countries later this year in tandem with the shipment of the first major update to Vista, known as Service Pack 1. “We anticipate these changed will provide greater opportunities … to sell more stand-alone copies of Windows,” said Brad Brooks, a Microsoft corporate vice president. In the U.S., Microsoft will reduce prices for Windows Vista Ultimate, the co’s top-end operating system, to $319 from $399 for the full version and cut the price for an “upgrade” version to $219 from $259 for consumers who already run Windows XP or another edition of Vista. In emerging markets, Microsoft will stop selling “upgrade” versions of Vista, because, for many customers, it will be the first purchase of a genuine copy of Windows. The co will instead sell Vista Home Premium and Home Basic, a stripped-down version, at the upgrade prices.
05:42 COMS Bain, Huawei to resubmit 3Com bid - WSJ (2.91 )

The Wall Street Journal reports Bain Capital LLC and China’s Huawei Co plan to resubmit an application seeking U.S. approval for their planned $2.2 bln buyout of 3Com (COMS) within the next several weeks, according to people familiar with the matter. The new transaction under consideration still would leave Huawei with 16.5% of the co and Bain holding the rest. But the deal would be structured to limit Huawei’s access to some core U.S.-related network products, including certain Ethernet technologies. The purchase price is expected to remain the same.
05:38 Fannie, Freddie may have further to fall - WSJ

The Wall Street Journal reports Q4 results released this week from Fannie Mae (FNM) and Freddie Mac (FRE) suggest that their debt-laden balance sheets could push the company’s shares much lower before they go higher. It appears that investors think most of the bad news is priced into the stocks. However, closely followed measurements of capital in Q4 results show that Freddie increased its leverage. That leaves the co more exposed than before to downturns in its business. And while Fannie’s leverage didn’t move much from the third to Q4, it remained at a level far above that of other financial institutions. A lack of capital could prompt dilutive stock issues from Fannie and Freddie, which operate under government charters. This week, both companies said they had adequate capital at the end of Q4. But both noted that they may take actions to raise more capital if business turns out to be worse than expected. One indicator that analysts track to get an idea of leverage is a calculation Fannie and Freddie do of their net worth, taking the current market values of most of their assets and subtracting their liabilities. By that measure, Freddie looked a lot more risky at the end of Q4 than it did at the end of Q3. At the end of Q4, Freddie reported that its net worth was $12.6 bln using market values, while its assets were worth $800 bln, or 64x more. This was up from 33x at the end of Q3. The leap was due to big declines in the value of the mortgages it holds and an increase in expected losses for the mortgages they guarantee. Fannie’s leverage, using this metric, stayed at around 25x from the third to fourth quarters. But Fannie’s leverage would have gone up if it hadn’t issued new preferred shares.
05:30 Early Newspaper Headlines: FNM/FRE - COMS - MSFT - BIDU

WSJ: Fannie, Freddie may have further to fall (FNM)(FRE)… Bain, Huawei to resubmit 3Com (COMS) bid. Reuters: Microsoft (MSFT) cuts Vista prices to urge upgrades. AP: Baidu (BIDU) sued over music copyrights.
04:18 TRCA Tercica announces new CFO and COO (6.10 )

Co names Richard King as President and Chief Operating Officer and Ajay Bansal as Chief Financial Officer.
03:45 ICGN ICAgen profiled in Inside Wall Street - BusinessWeek Online (1.71 )

BusinessWeek Online reports Rodman & Renshaw and S&P remain upbeat regarding the alliance between ICAgen (ICGN) and Pfizer (PFE). ICGN is developing three compounds for the treatment of pain disorders, and now Pfizer has obtained exclusive worldwide product rights. Pfizer has already paid Icagen $38 mln, including $15 mln in equity investments, with a potential $359 mln in total periodic payments. Pfizer is the largest holder, with 20%.
03:41 KMX CarMax profiled in Inside Wall Street - BusinessWeek Online (19.12 )

BusinessWeek Online reports CarMax (KMX) has only a 2% share of the market and has grown earnings at 28% annually for the past six years. Additionally, Warren Buffett has increased his stake in the co to 9.6% from 6.4% in February. Bradley Thomas of Lehman Brothers says CarMax’s “long-term growth story is intact.”
03:37 MDS Midas profiled in Inside Wall Street - BusinessWeek Online (17.27 )

BusinessWeek Online reports Mark Boyar, president of Boyar Asset Management, is positive on shares of Midas (MDS). It’s cheap, based on strong cash flow and solid balance sheet. Also, Midas has been a heavy buyer of its own stock and has slashed debt since 2003 from $130 mln to $70 mln. Within that period, Boyar notes that Midas boosted operating profits to $29 mln from $1 mln. Boyar believes Midas may become a buyout target. With its steady financials, it’s the kind of co the private equity guys are attracted to, he says. Boyar figures the stock is worth 30. Gamco Investors, which has a 16% stake, says Midas has broadened the type of services it offers and plans to expand its franchise business to enlarge its markets. “Right now, Midas is being slowed by speed bumps,” says Chairman M. Gabelli. But at some point, he adds, its business will get rejuvenated as the economy recovers and as plans for expansion take hold. In three years, Gabelli figures, the stock could double.
01:05 WIRES On The Wires

Euro Tech Holdings (CLWT) announces that its associated co, Zhejiang Jia Huan Electronic Co. Ltd, Zhejiang, has recently been awarded 4 contracts valued at approx $3 mln in China. The contracts cover design, manufacture, supply, and commissioning of electric voltage control equipment for ESP (electrostatic precipitators)… Wyeth Pharmaceuticals (WYE) announces the end of its collaboration agreements with Solvay Pharmaceuticals for the development and commercialization of bifeprunox as well as other compounds in earlier stages of development for the potential treatment of schizophrenia and other psychiatric conditions.
00:53 EXPE Expedia mentioned positively in Weekday Trader - Barron’s Online (23.46 )

Barron’s Online reports Expedia (EXPE) could be insulated from a broader slowdown since it serves as a middle man between desperate suppliers and frugal consumers. “When suppliers want to get rid of inventory they look to Expedia,” says Malindi Davies, an analyst with Oppenheimer. And “when consumers want to get better prices [on airfare and hotels], they’ll look to Expedia.” That matchmaking role gives Expedia a countercyclical shield of sorts, even if overall travel starts to slow. Lower occupancy rates at hotels, for instance, make operators more likely to release promotional deals into Expedia’s database, improving the site’s offerings. In addition to its scale, Expedia has a stronger hotel business than much of the competition and a more global platform. Shares trade at 16.3x estimated 2008 earnings, slightly below its historical forward average.
00:52 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Cooper Tire & Rubber (CTB), Atmos Energy (ATO) and Amgen (AMGN).
00:51 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Medco Health (MHS), Schering-Plough (SGP) and Yum! Brands (YUM).
00:50 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Thursday’s edition, Jim reiterated his positive view on Deere (DE) and would be a buyer with shares under $100. Next, he recommends Mobile Telesystems (MBT) over Vimpel Communications (VIP). MBT, he said, has a higher marketshare, is the safer of the two stocks, and is a better value. With a 1.8% dividend yield, MBT currently trades at just 13x its earnings with a 17% long-term growth rate. Finally, he recommends avoiding Fortress (FIG) and Blackstone Group (BX) based on the lack of disclosure the cos provide. He predicts FIG’s dividend could shortly be in jeopardy. In the ‘Sudden Death’ round, Cramer was bullish on Martek Biosciences (MATK) and bearish on Marvel Enterprises (MVL).
00:42 ALNY Alnylam Pharmaceuticals achieves human proof of concept for an RNAi therapeutic (29.92 )

Co announces that it has achieved human proof of concept with an RNAi therapeutic. Results from the co’s GEMINI trial with ALN-RSV01, an RNAi therapeutic for the treatment of respiratory syncytial virus, showed statistically significant anti-viral efficacy. In the Phase II experimental infection study, treatment with ALN-RSV01 led to a decreased RSV infection rate, an increase in the number of subjects who remained free of infection, and was safe and well tolerated.
00:40 BMR BioMed Realty Trust reports Q407 results (21.40 )

Reports Q4 (Dec) FFO of $0.46, $0.01 better than the First Call consensus of $0.45; revenue rose 1.7% year/year to $64.05 mln vs the $65.55 mln consensus.
00:36 PHH PHH misses by $0.07 (20.60 )

Reports Q4 (Dec) earnings of $0.21, $0.07 worse than the First Call consensus of $0.28; revenues rose 11.8% year/year to $550 mln (no estimates available).
00:32 TFX Teleflex misses by $0.06, misses on revs; guides FY08 EPS in-line (60.75 )

Reports Q4 (Dec) earnings of $0.71 per share, excluding non-recurring items, $0.06 worse than the First Call consensus of $0.77; revenues rose 29.9% year/year to $583.1 mln vs the $596.5 mln consensus. Co issues in-line guidance for FY08, sees EPS of $3.70-3.90, excluding non-recurring items, vs. $3.82 consensus. Co expects special items for ‘08 to be in the range of $0.60-0.67 per diluted share.
00:29 AMCS AMICAS misses by $0.01, misses on revs (2.76 )

Reports Q4 (Dec) loss of $0.02 per share, includes charges, $0.01 worse than the First Call consensus of ($0.01); revenues ros