Trading for the Masses

09:20 MTL Mechel Steel announces its interest in Oriel Resources (132.05 )

Co announces announces its interest in acquiring Oriel Resources. Mechel OAO is currently contemplating the acquisition of Oriel. This process is at an early stage and there can be no certainty that any offer will ultimately be forthcoming.
09:20 CRMT America’s Car-Mart: 3Q08 preview - C.L. King (10.90 )

C.L. King believes 3Q08 results will continue the CRMT’s recent trend of improving sales and gross margins and moderating credit losses. Firm is modeling a 10% same-store sales increase, against an easy (5.3)% year-ago comparison. They est a provision for credit losses of approx 23.9% of sales, up 100 bp sequentially but down from an abnormally high 30.6% a year ago. This is still well above its historical range of 17%-21%. One potential upside could be more business from sub-prime consumers who are now unable to get financing from conventional car dealers but who would actually represent higher quality credits than CRMT’s typical customer.
09:20 Solar cell makers aggressively expand capacity with growing obstacles in fund raising– Digitimes

DigiTimes reports that , despite the consistent shortage of polysilcion, robust demand for solar power has prompted leading solar cell makers in Taiwan to plan for aggressive capacity expansion in 2008. While the solar energy market still seems to be bullish from demand from an end market point of view, industry players observe more obstacles from fund raising as investors are becoming more cautious. MoTech, GinTech, E-Ton and Neo Solar have all mentioned capacity expansion plans recently. Among the aforementioned solar cell makers, Neo Solar has suspended its rights issue via private placement. The company originally planned to issue two million shares with a per unit price of NT$150, but market sources indicated that Neo Solar is likely to revise down the price to NT$105.
09:19 CME CME Group; BMO doesn’t believe DoJ letter would derail a possible merger with NYMEX (513.30 )

BMO discusses their meeting with CME mgmt, saying they don’t believe the DoJ letter indicates that the DoJ would derail a possible merger with NYMEX (NMX), in particular because the letter addresses only financial futures (of which NMX offers none) and because the two exchanges have little crossover among their product offerings. Firm notes that electronic options activity, which provides co with higher fees, has picked up activity through Feb. They think this growth will have positive implications for the 1Q RPC (rate per contract).
09:19 GS Goldman Sachs buys Rank’s 700 mln post pension scheme - The Independent (169.63 )

The Independent reports the co finally sealed its first major buyout of a UK pension scheme yesterday, snapping up Rank Group’s 700 mln pounds plan — the biggest deal in the closed pension fund mkt to date. The sale of the scheme, which has some 19,000 members, frees gambling group Rank, led by the chief executive Ian Burke, from some 30 mln in additional pension payments over the next two years, and will raise it an additional 20 mln pounds from some of the surplus assets in the scheme. Goldman Sachs will take over the fund via its subsidiary Rothesay Life.
09:18 MRCY Mercury Computer subsidiary, Mercury Federal Systems, receives $2.5 mln contract award development and demonstration of a testbed to support the JCREW program (6.41 )

09:17 MOT Motorola: Removed for AmTech’s Focus Sell list primarily to take profits following a 23% return in 4 weeks (9.97 )

AmTech is removing MOT from the AmTech Focus Sell list primarily to take profits following a 23% return in 4 weeks. Firm still values MOT’s ex-handset business at $8/share based on 14x their earnings power est of $0.60 EPS. The stock at $9.97 implies about a $2 valuation for MOT’s handset division, down from about $5 when they added MOT to their focus list. Firm believes MOT’s announcement to explore options with regard to its handset division has caused distractions which jeopardize or push out the timing of an ultimate recovery of market share and/ or profitability. A handset sale does not make sense here as it would be akin “selling at the bottom”, but a sale and/or partnership of its wireless infrastructure with NT is more likely as both cos would benefit from a larger footprint and scale as they set their sights on the 4G build.
09:16 QCOM Qualcomm: U.K. court rules QCOM patent invalid - AmTech (42.38 ) -Update-

AmTech says NOK won a patent case in the U.K. that QCOM had brought against them in May of 2006. This was one of a litany of cases between the two cos which they believe have been brought in attempt to improve negotiating positions in the royalty battle. NOK’s victory in this case is not a surprise, but a modest positive in the battle with QCOM. This victory does not change their view that QCOM will ultimately get NOK to pay on the order of 2% royalties in the next 3-18 months. While it is tough to predict the timing, firm is focused on the Delaware consolidated court cases which are slated to begin in July of 2008. Firm’s analysis suggests ~ $2.60 in EPS power based on 2009 industry shipment ests should NOK pay 2%.
09:16 S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -1.0.
09:16 WRAPX Pre-market Summary

Futures indicate a modestly lower open for the mkt as they are well off their worst levels overnight. That is noticeably better than the action seen in foreign mkts. India’s Sensex plunged 5.1% and Japan’s Nikkei lost 4.5% on concern worsening credit losses at financial cos will push the U.S. economy into a recession. European bourses are also off their worst levels of the day, yet most remain down in excess of 1.0%. The news out of the financial sector is mixed this morning. Ambac (ABK) Friday after the close cut its dividend, suspended structured finance writings for six months and discontinued writing new financial services businesses. This morning, Thornburg Mortgage (TMA) is indicated ~25% lower after announcing additional margin calls of ~$270 mln, saying it has not met the majority of its most recent margin calls. But global lender HSBC (HBC) is indicated 9% higher after announcing full-year net profit of 21% as growth in its Asian operations helped offset impairments on subprime and other loans in its U.S. consumer-finance business. One news item of note, Warren Buffett said on CNBC this morning that “by any common sense definition, we are in a recession.” Dow futures are currently -50; Nasdaq futures are currently -1.3; S&P futures are currently -0.8. For technical levels of interest, click here… Following Friday’s strong rally, the Bond mkt is seeing profit-taking this morning. The 10-yr is currently +12/32 to 3.556%. On the Fed calendar, Treasury Secretary Paulson speaks at a business economists’ conference at 10:00ET, while Governor Kroszner speaks on risk management at 14:00ET… In Commodities, Apr gold ($988.30 +13.30) is extending to a fresh all-time high ($989.50) after first hitting record levels overnight on continued weakness in the dollar. May silver ($20.470 +0.555) is also extending its 28-year high ($20.560)… In Europe, mkts dropped sharply by mid-day as worries over the world economy and the potential fallout from the credit crisis kept banks under pressure, even as HSBC gained. FTSE is currently -1.1%; DAX is currently -1.5%; CAC is currently -1.3%. In Asia, mkts plunged on concern worsening credit losses at financial cos will push the U.S. economy into a recession. Nikkei closed -4.5%; Hang Seng closed -3.1%; Shanghai Composite closed +2.1%… Notable pre-market Calls includes Upgrades: DT at JP Morgan, DV at Lehman, EXC and ETR at Jefferies, KSS at JP Morgan, NOC at Oppenheimer, STX at JP Morgan; Downgrades: APOL at BofA, F at Citi, ISLE at Brean Murray, WDC at JP Morgan… On the Earnings calendar, 18 cos are confirmed to report today after the close, though none are expected to be market-moving releases… On the Economic calendar, the Feb ISM Manufacturing Index (consensus 49.0; prior 50.7) and Jan Construction Spending (consensus -0.8%; prior -1.1%) will both be released at 10:00ET.
09:16 SMTC Semtech: AmTech expects in-line results, weaker guidance due to seasonality (12.74 ) -Update-

AmTech says SMTC will release Jan qtr earnings results after the close on Tues, March 4. For the upcoming quarter, they are maintaining their ests of $77 mln in rev and $0.19 EPS including stock based compensation (consensus: $75 mln and $0.23 pro forma). Firm expects guidance to be below consensus for the April quarter due to a high level of exposure to computer and consumer end markets. Firm is modeling $71 mln in rev and $0.13 EPS including stock based compensation (consensus at $77 mln and $0.24 pro forma). Firm believes distributors are carefully managing inventory due to an uncertain business climate. However, SMTC is gaining traction in industrial and handset markets which should ramp in volume later this year.
09:15 ARTC ArthroCare to consider financial and strategic alternatives (40.15 )

Co announces that its Board of Directors has begun an evaluation of the company’s financial and strategic alternatives to enhance shareholder value. The Board’s decision to evaluate these alternatives is based on its belief that the company’s current stock price does not reflect the fundamental value of the company’s business. The Board intends to consider the full range of available options, including a recapitalization, a stock repurchase, a sale or disposition of one or more corporate assets and/or a strategic business combination. Michael Baker, CEO, noted, “We remain confident in the strength and growth opportunities of our business, as reflected in our reported 2007 results and the guidance previously provided for 2008 in our recent earnings call, as well as the opportunities for near and long-term value creation for our shareholders through execution of our business plan. Any decisions the Board makes will be based upon what it believes will be best for enhancing shareholder value.”
09:15 RY Royal Bank of Canada downgraded toUnderperform from Market Perform at BMO Capital (50.10 )

09:14 AAPL Apple tgt cut to $175 at RBC (125.02 ) -Update-

RBC cut their tgt on AAPL to $175 from $200. Firm believes that pending contributions from Smartphone market expansion, new iPhone versions (incl 3G), 3rd party applications, expanded global distribution, enterprise server integration, unlocked phones, in their view will contribute to Apple shipping 11 mln iPhones CY08. Firm says mid-Q2/F08 checks and proprietary data from RBC’s Tech Adopter Panel point to healthy iPhone shipments (est 2.3 mln units) and strong Q2 Mac sales (est 2.2 mln).
09:13 WFR MEMC Elec initiated with a Buy at Amtech- tgt $105 (76.28 ) -Update-

Amtech initiates WFR with a Buy and a $105 tgt saying the co is uniquely positioned as the only publicly traded, US based, incumbent polysilicon manufacturer in an extremely tight supply environment. They argue polysilicon supply will remain tight through 2009, giving the co ample time to sign additional long-term supply agreements with industry leaders at fixed prices, as well as take advantage of a favorable spot market with any production that comes online ahead of schedule. The firm views WFR as a hedge against the major solar bear scenarios: fixed price agreements should shelter the company from a possible oversupply of modules, meanwhile WFR would benefit in the spot market from an extended shortage of polysilicon that would threaten growth and squeeze module margins.
09:12 SEPR Sepracor upgraded to Neutral at Amtech (21.47 ) -Update-

Amtech upgrades SEPR to Neutral from Sell noting last Friday, SEPR significantly lowered 2008 guidance to a midpoint of $1.60 ($1.40-$1.80) from a midpoint of $2.40 ($2.35-$2.45). The firm says with that event having come and gone, and the stock down 30% from a month ago and 22% from their downgrade, they prefer to move to the sidelines at this time.
09:12 ABH AbitibiBowater tgt cut to $18 at RBC (10.35 )

RBC cuts their tgt on ABH to $18 from $27 following 4Q07 results ahead of consensus. Reflecting ongoing fiber, energy and transportation cost headwinds, firm is reducing their 2008, 2009 and trend EBITDA forecasts from $635 mln, $895 mln and $1 bln to $540 mln, $850 mln and $950 mln. As a result, their EPS forecast for 2008 and 2009 has been revised down from ($7.00) and ($3.24) respectively to ($7.83) and ($3.54).
09:11 Price drops for LCD components may be smaller in 2008 - DigiTimes

DigiTimes reports the pace of price reduction for LCD components will be lower this year and starting from the second or third quarter, color filter and glass substrates may face shortages, according to LCD component makers. In the past, panel makers have aimed to drop their costs by 3-5% sequentially. The average reduction in LCD component production costs was around 3% for the full year of 2007, according to industry sources.
09:10 WIRES On The Wires

Copart (CPRT), through its subsidiary in the United Kingdom, announces that it has purchased the assets and business of AG Watson Auto Salvage & Motors Spares. AG Watson operates two salvage locations in Scotland and two salvage locations in northern England… Vasogen (VSGN) provides an update on ACCLAIM II, a clinical trial which is being planned to support an application for U.S. market approval of the Celacade System for the treatment of patients with New York Heart Association Class II heart failure… Dollar Tree Stores (DLTR) announces that effective today, it has reorganized by creating a new holding co structure. The primary purpose of the reorganization was to create a more efficient corporate structure.
09:10 EFSC Enterprises Finl discloses that President and CEO, Kevin Eichner, has resigned; Peter Benoist named President and CEO (20.01 )

In its 8-K, the co discloses that Kevin Eichner, has tendered his resignation as the President and CEO effective May 1, 2008. Mr. Eichner resigned in order to accept the position of President of Ottawa University. The co simultaneously announced that the Board of Directors has appointed Peter Benoist to replace Mr. Eichner as President and Chief Executive Officer, also effective May 1, 2008.
09:09 MCHP Microchip raises EPS guidance slighly for Q4 (30.78 )

Co issues in-line guidance for Q4 (Mar), sees EPS of $0.36-0.38 up from prior guidance of $0.35-0.35 vs. $0.36 First Call consensus; sees Q4 (Mar) revs +0-4% or roughly ~$252.6-262.7 mln vs. $254.46 mln consensus. Co said, “Our business has performed well through the first two months of the quarter… Based on the momentum we are experiencing, we feel comfortable that our business will sequentially grow in the March quarter. Also, our gross margins for the March quarter are expected to reach another record of approximately 60.9% on a GAAP basis, and approximately 61.5% on a non-GAAP basis, prior to the effect of share-based compensation.”
09:08 GOOG Google: Bear Stearns says GOOG search share remains at 70%, indicating bounce back - CNBC (471.18 )

09:08 CXG CNX Gas Special Committee requests that stockholders defer making a decision regarding the exchange offer of CONSOL Energy (36.62 )

Co announces that on Feb 28, 2008, CONSOL Energy filed with the SEC a registration statement on Form S-4 to register shares of the common stock of CONSOL Energy that CONSOL Energy intends to offer in exchange for all of the outstanding shares of the common stock of CNX Gas not owned by Consolidation Coal Company, a wholly-owned subsidiary of CONSOL Energy. On behalf of CNX Gas, the special committee request that stockholders defer making a determination whether to accept or reject the exchange offer until they have been advised of the position of the CNX Gas special committee with respect to the exchange offer.
09:08 JWN Nordstrom: Febraury sales preview - McAdams Wright Ragen (37.03 )

McAdams Wright Ragen expects JWN to report a Feb comps decline of about 3% on a +9.1% prior-year comparison. Firm ests is in line with mgmt’s 1Q08 comps guidance calling for a 3-5% decline. As their est suggests, firm expects that macro trends remained soft during the month, particularly in CA, which was a trouble spot in Jan. They don’t believe that weather trends, which were mixed, had a material impact on comps.
09:07 GCO Genesco: UBS-FINL to settle Genesco dispute; UBS-FINL to pay GCO $175 mln in cash - DJ (29.95 )

FINL to issue 12% of class A shares to GCO. (UBS)
09:07 CNBC commentator discusses today’s regularly scheduled Fed Governors meeting; says this is a regularly scheduled meeting, not proof of emergency meeting

09:05 SVU Supervalu reaffirms Y08 EPS; issues upside Y08 guidance (26.25 )

Co reaffirms Y08 GAAP EPS of $2.71-2.77 vs $2.74 consensus. Y08 EPS range reflects identical store sales growth of approx 0.5%, reflecting flat Q4 identical store sales. Co issues upside Y09 guidance, sees GAAP EPS of $3.06-3.22 vs $3.04 consensus. “We are providing preliminary guidance for fiscal 2009 today and will give greater visibility to our 2009 outlook in mid April when we report our fiscal 2008 earnings. Our fiscal 2009 earnings guidance reflects modest operating growth, including the benefits of synergies, lower interest expense and the 53rd week. We are assuming low single-digit sales growth and identical store sales growth in the range of 1 percent to 2 percent for fiscal 2009. We remain focused on our integration initiatives and our long-term growth strategies. We are confident in the overall strength of our business and the future earnings potential of the company.”
09:05 SCANX Gapping down

In reaction to weak earnings/guidance: GEHL -15.8%, DFR -11.4%… Select mortgage names showing weakness following co specific news: TMA -24.6% (announces additional margin calls of approximately $270 mln), SCA -4.6% (to take $1.5 bln charge related to credit derivatives - DJ), ABK -3.1% (cuts dividend to $0.01 from $0.07; suspends structured finance writings for six months; discontinues writing new financial services businesses)… Other news: FRPT -12.4% (announces delay in 2007 form 10-K and required restatement of form 10-Q for the period ended September 30, 2007), LLNW -8.1% (confirms verdict in patent trial, jury awarded Akamai damages of ~$45.5 mln plus prejudgment interest; also downgraded to Mkt Perform at Raymond James), SLT -4.6% (still checking), BG -4.4% (correcting net sales and cost of goods sold that were overstated in its 2007 unaudited quarterly financial statements), BA -4.0% (Northrop wins $40 bln tanker contract - WSJ), CEDC -3.4% (files for a mixed shelf offering; announces a $310 mln convertible notes offering under the shelf registration statement), JBL -3.2% (Lehman cuts estimates and says stock has further downside), RTP -2.4% (still checking), SYT -2.0% (still checking), BP -1.1% (still checking)… Analyst downgrades: ALNY -8.5% (downgraded to Underperform at Needham), NPSP -7.8% (downgraded to Sell at tier 1 firm, APOL -4.1% (downgraded to Sell at BofA), CVC -2.9% (downgraded to Sell at Pali Research), WDC -2.2% (downgraded to Underweight at JPMorgan), F -1.2% (downgraded to Sell at Citigroup).
09:04 SUPX Supertex downgraded to Neutral from Buy at Piper Jaffray (20.70 )

09:04 MCHP sees Q4 GAAP EPS of $0.36-0.38 vs $0.36 First Call consensus

09:03 MCHP raises Q4 guidance; sees revs up 0-4% sequentially, or roughly $252.6-262.7 mln vs $254.46 mln First Call consensus

09:01 IOSP Innospec authorizes additional share repurchases of up to $8 mln (18.74 )

09:01 NTE Nam Tai Electronics to sell JIC shares for approx. $51.1 mln in cash (9.55 )

As previously announced, the co has been engaged in negotiations regarding the potential sale of Nam Tai’s entire interest in its Hong Kong-listed subsidiary, J.I.C. Technology Company Limited. Nam Tai owns 572,594,978 shares of JIC, representing approximately 74.99% of the outstanding share capital of JIC. These negotiations were concluded on February 26, 2008, when Nam Tai and HKC entered into a Share Purchase Agreement, under which HKC agreed to purchase, and Nam Tai agreed to sell, Nam Tai’s entire interest in JIC for cash in the aggregate amount of approximately $51.1 mln.
09:01 SVU sees Y09 EPS of $3.10-3.25, ex-items, vs $3.04 consensus

09:01 HRLY Herley Industries receives a follow-on contract award of more than $1.4 million from Telephonics to provide integrated receiver exciters search and surveillance radars (11.99 )

09:00 SVU reaffirms Y08

09:00 INTV InterVoice appoints Jim Milton as President and Chief Operating Officer (7.07 )

08:59 DRCO Dynamics Research awarded TRICARE teams contract (9.66 )

Co announces that it was one of 22 companies awarded a prime contract for the $5 bln TRICARE Evaluation, Analysis, Management and Support program, or TEAMS. This indefinite delivery and indefinite quantity contract with the Office of the Assistant Secretary of Defense for Health Affairs and TRICARE Management Activity has a one-year base period with nine option years. Co anticipatse task order R.F.P.s will begin to flow later this year.
08:59 VMED Virgin Media considers channel sale - C21media.net (15.00 )

C21media.net reports the co is carrying out a review that could lead to the sale of some or all of its channels. Goldman Sachs has been appointed to review the business, which could lead to the largest auction of channels in the UK since the launch of multi-channel television. The cable co owns Bravo, Living, half of UKTV, Trouble , Virgin 1 and Sit Up TV, among others. Other options may include the outright sale of the co, which analysts estimate could raise $1.5 bln.
08:58 WIRES On The Wires

Security Capital Assurance (SCA) announces that on Friday, February 29, 2008, it filed a Notification of Late Filing on Form 12b-25 with the SEC with respect to its Annual Report on Form 10-K for the fiscal year ended December 31, 2007… NIKE (NKE) and Umbro announce that Steve Makin, CEO and Board member of Umbro, has decided to leave the company. Effective immediately, Makin will be succeeded as President and CEO by Matthew Cook.
08:57 S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -1.0.

Futures point to a slightly lower start, and are well off their worst levels. Crude oil is trading up 0.6% to $102.50.
08:56 ORCL Oracle: Q3 preview; no signs of stress - Cowen (18.80 )

Cowen says that while they remain bearish on the macro backdrop, valuation considerations and their ORCL specific checks keep them constructive on the stock. On the macro side, firm continues to believe that ORCL’s value proposition continues to resonate with IT buyers, thus enabling ORCL to leverage its ever expanding product portfolio to sell ELAs and gain market share. While selling big deals won’t last forever, it does give firm confidence in ORCL’s ability to maintain guidance at the very least. Given that the BEAS deal has already cleared the DoJ, firm believes the deal could close in 4Q, earlier than investors expect, and could slightly pad numbers.
08:54 SEPR Sepracor: ‘08 tgts may prove conservative, but Xopenex settlement key milestone - Cowen (21.47 )

Cowen says SEPR Q4 results were better than expected, but 2008 EPS guidance was below firm’s low-end targets on higher sales and much higher spending. New CEO Adrian Adams is shifting SEPR’s investment from legacy products Xopenex and Lunesta to newly-acquired Omnaris, Alvesco, eslicarbazepine, and an expanding pipeline. In the near-term, the key event for SEPR shares is the potential settlement of the Xopenex nebule patent litigation with lead litigant Breath Limited before the trial begins on July 14: firm ests the probability of a settlement at 60-70%. Should Sepracor negotiate a settlement agreement that maintains Xopenex exclusivity through 2010, they believe SEPR shares have 20%+ upside relative to the market in 2008
08:53 Gartner cuts IC forecast by half - EE Times

EE Times reports citing a weak demand picture and slumping chip prices, Gartner has cut its worldwide IC forecast by nearly one-half. In Dec, Gartner said that the overall IC market would grow by 6.2% in 2008 over 2007. In its latest forecast, the co said the semiconductor mkt will grow only 3.4% in 2008. The IC mkt is expected to rebound and grow by 9.4% in 2009. What prompted the changes in 2008? There are mixed signals in the mkt. First, the signs are ”pointing” to a slowdown or a U.S. recession, according to Gartner. Most IC executives are not seeing a slowdown in orders, although visibility beyond the next quarter is ”poor,” according to the co. The real problem is the memory market. The DRAM market has been in a ”recession” since the start of 2007. DRAMs are expected to fall by 15 percent in 2008 and the overall recovery in the sector could be pushed out until 2009, according to the co. NAND flash will grow less than 15% in 2008, which is down from Gartner’s previous forecast of some 30% growth this year.
08:52 AFFX Affymetrix: New restructuring a step toward fortifying conviction in long-term potential - Cowen (19.18 )

Cowen says after the close on Friday, AFFX announced plans to move the majority of probe array manufacturing to its Singapore facility by YE08 which should materially benefit gross margins and potentially reduce operational spend. While this restructuring does not come as a complete surprise, the scope/pace is more material than they expected. It is a positive step towards fortifying conviction in mgmt; firm continues to believe further steps to build confidence in margin potential and overall execution ability will drive shares to Outperform the market by at least 20% over the next 12 months especially given that 09/08 EPS growth could far exceed 50% Y/Y.
08:48 BG Bunge trades lower following press release discussing that it is correcting net sales and cost of goods sold that were overstated in its 2007 unaudited quarterly financial statements (110.84 )

BG is trading lower this morning, on light volume, following a press release saying that it is correcting net sales and cost of goods sold that were overstated in its 2007 unaudited quarterly financial statements and its Feb 7, 2008 press release containing its preliminary results for 2007. These corrections represent an approximately $7 billion reduction in net sales and cost of goods sold and have no impact on Bunge’s previously reported volumes, gross profit, segment operating profit, net income or earnings per share, or on the company’s consolidated balance sheets or statements of cash flows. The corrected financial information is included in Bunge’s 2007 annual report on Form 10-K filed today. Bunge identified these errors during its year-end closing process. Bunge is remediating the control deficiencies that led to the need for these corrections, and which the company has determined constitute material weaknesses in its internal control over financial reporting in 2007.
08:46 U.S. Treasury’s Lowery says beyond the U.S., economic growth remains solid

Lowery says global write-downs and losses from market turmoil now over $200 bln.
08:45 February Comp Preview: Uncertain clouds remain, but not upbeat - Brean Murray

Brean Murray says February remains a relatively unimportant month, with new spring looks only arriving in some level of importance in the second half of the selling period; firm also notes the slightly colder weather in the last two weeks of the month was also a slight negative. March, which should have a full month of higher-margin spring selling, will be materially more important. Although Feb will not provide compelling proof, they believe their comps universe will take advantage of the current “trade down” shifts and what they believe will be a solid spring fashion season, driven by colors and dresses (Arden B. and CACH). Firm reiterates their Buy ratings on ARO, CACH and WTSLA. Firm notes SRO Feb comp est of 3-5%, CACH 2-4%, WTSLA (3%)-(1%).
08:44 NEM Newmont Mining and Government of Indonesia file for international arbitration in relation to divestiture process under contract of work (51.17 ) -Update-

Co announces that PT Newmont Nusa Tenggara, its Indonesian affiliate, and the Government of Indonesia filed notices for international arbitration, as provided for under the Contract of Work, to resolve claims by the Indonesian government that PTNNT has not complied with its divestiture obligations.
08:41 GE General Electric CEO bought 90K shares at $33.40-33.44 on 2/29 (33.14 )

08:40 WIRES On The Wires

Alnylam Pharmaceuticals (ALNY) announces that the Japanese Patent Office has sent notification of an intent to grant a patent for the Tuschl II patent series, entitled “RNA Interference Mediating Small RNA Molecules”… Rosetta Genomics (ROSG) announces that the U.S. Patent and Trademark Office has issued a Notice of Allowance for two of the co’s patent applications on human (10/604,726) and viral (10/604,942) microRNAs… ScanSource (SCSC) has entered into an agreement with PC4 to purchase certain assets of the co, including PC4’s commercial POS product inventory… Advanced Battery Technologies (ABAT) announces that it has collaborated with Wuxi Angell on the development of an electric hybrid motorcycle that utilizes cells that were initially designed for mining equipment. As a result of this collaboration, Advanced Battery Technologies and Wuxi Angell have obtained the necessary CE markings to start marketing Wuxi’s motorcycle worldwide…. Compania de Minas Buenaventura (BVN) announces that operations at its four operating units — Orcopampa, Uchucchacua, Antapite and Caraveli — resumed March 1, 2008 at midnight, after the conclusion of a 72 hour strike, which began on February 27, 2008… IKON Office (IKN) announces that it plans to complete the remainder of its $500 mln share repurchase program through operating cash flow, and within the covenants of its existing debt structure… Rockwell Collins (COL) announces its intent to acquire Athena Technologies, a privately held company that develops and provides flight control and navigation solutions primarily to the Unmanned Aerial Vehicle market segment. Terms of the agreement were not disclosed.
08:40 WFR MEMC Elec: Outlook improved on poly supply delays - Lehman (76.28 )

Lehman says following industry checks and recent data points implying potential headwinds to new poly entrants, firm updates their outlook on semi/solar leader WFR. In general, despite concerns on semi volumes, firm remains encouraged by: 1) growing solar demand ahead Spain/Germany incentive plan revisions in 3Q08/1Q09, 2) Numerous solar plays noting substantial increases in 1Q08 poly prices, 3) limited semis pricing risk given that 80% of contracts were priced as of Jan 1. Firm says WFR remains one of their top picks for ‘08 underpinned by potential for upward est revisions this yr. Firm believes select solar plays are turning to spot market to obtain poly supply ahead of Spain’s revision to its incentive program in 3Q08.
08:39 Barron’s interview with Dennis Gartman discusses his current long/short positions

Barron’s published an interview with Dennis Garman of the Gartman Letter. Gartman noted that on balance they are long “stuff,” and short retail. “We’re long raw materials. We’re long Converted Organics (COIN), Petroleo Brasileiro (PBR), Cash America International (CSH), Walt Disney (DIS), North American Palladium (PAL), streetTracks Gold Shares (GLD), Stillwater Mining (SWC), Hovnanian Enterprises (HOV), Genesee & Wyoming (GWR), General Moly (GMO), San Juan Basin Realty Trust (SJT), NVR (NVR) and Caterpillar (CAT)… We’re short [as of Friday] ProShares UltraShort S&P 500 (SDS), General Motors (GM), DryShips (DRYS), Google (GOOG), CME Group (CME), Apollo Group (APOL), and Target (TGT).
08:39 YHOO Yahoo!: Microsoft to aim for coup if Yahoo! fails to enter talks on takeover - Times of London (27.78 )

Times of London reports MSFT is to attempt a boardroom coup at the co within a week in an effort to force the online search engine to start serious talks or accept its $41 bln hostile bid, The Times has learnt. It is understood that Microsoft is preparing to nominate a “slate” of executives to sit on the Yahoo! board. Although Microsoft is not allowed to seek private understandings from its chosen executives that they would accept the software giant’s offer, in practice the executives would recommend that Yahoo! begin serious talks or accept the approach. According to the rules that govern the way in which Yahoo! is set up, any shareholder can nominate directors before the annual meeting. The deadline for such nominations is March 14. Should Microsoft’s nominations be successful, their appointment would be effective immediately. A banking source close to Microsoft said: “We would be negligent if we were to allow this date to pass.” While Microsoft declined to comment, it is understood that the only event that would stop the co from launching a coup would be if Yahoo! were to begin formal, serious talks on the offer.
08:39 February handset demand: Pac Crest says checks indicate stronger-than-expected Feb sell-through in the U.S.

Pac Crest says checks indicate stronger-than-expected Feb sell-through in the U.S. Checks indicate generally in-line sell-through in Western Europe. The BlackBerry Curve continues to take market share at AT&T (T). Samsung sees strong gains at T and VZ. Centro sales remain strong at S; too early to tell at T. MOT market position weakens further. Supply for LG Voyager has mostly caught up to demand. Voyager success bodes well for prospects of QCOM”s MediaFLO. Nokia N95 continues to dominate smartphone sales in W. Europe.
08:37 KEG Key Energy issues Q1, Y08 guidance (13.51 )

Co issues Q1 guidance, sees Q1 EPS of $0.28-0.32 vs $0.31 consensus; co sees revs of $435-450 mln vs $418.0 mln consensus. Co issues Y08 guidance, sees Y08 EPS of $1.22-1.40 vs $1.38 consensus; co sees revs of $1.75-1.85 bln vs $1.74 bln consensus. Co anticipates that industry activity levels in Y08 will be strong due to current high commodity prices. Co believes that its customers will spend more to drill and develop properties in Y08 than in Y07, resulting in increased activity levels. Co’s forecast also assumes that the expansion of new equipment supply will slow due to reductions in capital spending by its competitors.
08:37 MVG MAG Silver downgraded to Outperform from Strong Buy at Raymond James (14.88 )

08:37 BE BearingPoint wins Army medical research and materiel command contract valued up to $115 mln (1.62 )

Co announces it has been awarded a contract to support the U.S. Army Medical Research and Materiel Command, along with eight other firms. BE’s contract is for one year with four annual options, and has a maximum first year value of $21.7 mln and an initial five year ceiling of $115 mln. BE will support this mission through proven enterprise resource planning and project management competencies focused on the following areas: medical research and logistics, information technology, product support, and scientific and technological assessment support.
08:36 BofA lowers their ests for Investment Banks as trends worsen in Feb

BofA says they are further cutting estimates another 27%, and leaving their numbers 29% below the street’s Q1′08 ests for Investment Banks. The cut most severely for Goldman (GS) by 45% and Lehman (LEH) by 43%. The firm cuts Bear Stearns (BSC) by 7%, and Morgan Stanley (MS) by 15%. The firm assumes incremental markdowns on L.B.O commitments/loans and R.M.B.S & C.M.B.S inventories and marks on other principal investments, while the Investment banking environment has continued to soften w/ M&A fees down 37% vs. Q4′07, E.C.M fees down 58% and D.C.M fees down 17% industry wide. The firm says their favorite large investment bank stock ahead of earnings reports continues to be Morgan Stanley (MS).
08:36 SCANX Gapping up

In reaction to strong earnings/guidance: ATPG +7.8%, HBC +4.0%, STXS +3.1%, PRX +1.1%… M&A news: DBD +64.2% (United Technologies proposes acquisition of Diebold for $40/share in cash; ATM manufacturer NCR is trading up 9% in sympathy)… Select gold stocks showing strength with higher spot prices: HMY +4.6%, GFI +2.9%, GOLD +2.1%, AUY +1.4%… Other news: BRLC +12.7% (signs LCD panel supply agreement with LG.Philips LCD), BONT +10.1% (Barron’s makes positive comments), MFN +7.5% (still checking), NOC +5.6% (wins $40 bln tanker contract - WSJ; also upgraded to Outperform at Oppenheimer), ETFC +4.4% (WSJ reports with Layton as Chief Executive, might be angling for a sale), SLM +3.3% (closes new financing facilities), COIN +3.1% (Barron’s interview with Dennis Gartman discusses his current long positions including COIN), AEM +1.4% (reports investment in Forum Uranium Corp. and concurrent option agreement; also Cramer had CEO as guest on MadMoney to discuss co’s outlook and growth prospects)… Analyst upgrades: MELI +3.7% (upgraded to Outperform at RBC), LULU +3.4% (upgraded to Mkt Perform at BMO), OSIP +1.6% (upgraded to Outperform at Wachovia), PIR +1.5% (upgraded to Outperform at Wachovia), EGLT +1.3% (initiated with an Buy at Piper Jaffray), AU +1.2% (upgraded to Buy at UBS), ENTR +1.2% (initiated with an Buy at Piper Jaffray), DV +1.1% (upgraded to Overweight at Lehman), ETR +1.0% (upgraded to Buy at Jefferies).
08:35 JCG J. Crew: NY Times discusses JCG’s CEO - NY Times (40.05 )

NY Times reports visiting stores, quizzing the staff, critiquing everything in sight — and most of all, meeting customers — is at the core of how Millard Drexler, the CEO of JCG, runs J. Crew. It’s also what makes him happiest. He may be more hands-on than any other chief executive in the country. “The joke in the business is that retail is detail,” said Richard Jaffe, who follows the co for Stifel Nicolaus. “Mickey lives that.” “Walking a store with Mickey Drexler is one of the great experiences in business,” said James Coulter, a founding partner of TPG, the giant private equity co that had the wit to snatch up Mr. Drexler after he was cut loose by the Gap’s board — and when the word among fashionistas was that he had lost his touch… At a time when most retailers are struggling — with credit tight, and consumers increasingly unwilling to spend — J. Crew stands out. It is growing at a steady, healthy clip; Mr. Jaffe estimates that when it reports its 2007 results in a few weeks, the co will report revenue of $1.3 bln, a 14% increase. It is nicely profitable. Although the stock has been down recently, it is still, in the low 40s, more than double its 2006 initial offering price of $20 a share.
08:35 BSX Boston Scientific announces European approval of new heart failure lead (12.59 )

08:34 KEG sees Y08 EPS of $1.22-1.40 vs $1.38 consensus; co sees resv of $1.75-1.85 bln vs $1.74 bln consensus

08:34 IFC Irwin Fincl Announces Suspension of Quarterly Dividends (7.51 )

08:34 KEG sees Q1 EPS of $0.28-0.32 vs $0.31 consensus; co sees revs of $435-450 mln vs $418.0 mln consensus

08:31 MWE MarkWest Energy reports Q4 EPS of ($0.64) may not compare to $0.44 consensus; reports revs up 6.3% yr/yr to $146.4 mln vs $168.9 mln consensus (34.50 )

08:31 GIVN Given Imaging announces new Mayo Clinic study concludes celiac disease may be more severe than symptoms indicate for some patients (15.86 )

Co announces that a study by researchers at the Mayo Clinic reported that capsule endoscopy is a more effective tool to diagnose celiac disease and detect damage throughout the small intestine than upper endoscopy. Researchers also found that celiac affects a highly variable portion of the small intestine and that the severity of symptoms did not correlate to the severity of intestinal damage. Given Imaging’s PillCam SB video capsule was the first capsule endoscope on the market designed specifically to help doctors see inside all 30-feet of the small bowel (small intestine) to diagnose disorders such as Crohn’s disease, Celiac disease, benign and cancerous tumors, ulcerative colitis as well as others disorders.
08:30 ARRY Array Biopharma announces “Positive Phase 2 Top-Line Results” in inflammatory pain clinical trial (5.60 )

Co announces positive top-line results from a Phase 2 clinical trial evaluating the efficacy of ARRY-797, a novel, orally administered, small molecule pan-cytokine inhibitor, in patients with post-surgical dental pain. ARRY-797 achieved its primary and secondary endpoints for analgesic efficacy and was well tolerated. Based on these results, ARRY is moving forward with a second Phase 2 acute inflammatory pain trial comparing various doses of ARRY-797 to placebo and to celecoxib. Array also plans to initiate a Phase 2 study of ARRY-797 in ankylosing spondylitis, a chronic, painful, inflammatory disorder known to respond to biologic TNF inhibitors. The analgesic effect of 400 mg of ARRY-797, compared to placebo, was statistically significant based upon the primary endpoint of total pain relief over six hours post dose. The analgesic effect was also statistically significant for total pain relief over three, eight, twelve and 24 hours post dose. Other analgesic endpoints, including total pain intensity, time to meaningful pain relief and time to analgesia were also significantly improved versus placebo.
08:30 S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -3.5.

The current indication suggests a slightly lower start. There is continued speculation regarding the state of the Ambac (ABK) bailout. A CNBC commentator said talks are ongoing, but a deal has not been reached.
08:30 UTX United Tech reaffirms FY08 guidance (70.51 )

Co reaffirms guidance for FY08 (Dec), sees EPS of $4.65-4.85 vs. $4.86 First Call consensus. (Briefing.com note: UTX has proposed and acquisition of DBD.)
08:29 AIRN Airspan Networks, Fujitsu win WiMax equipment order from KDDI, Nikkei says - DJ (1.15 -0.04)

DJ reports Fujitsu and AIRN have jointly won a contract to supply key systems for WiMax next-generation wireless broadband services to KDDI, The Nikkei reported in its Monday morning edition. WiMax services are expected to be launched in Japan in 2009. The contract, which is estimated to be worth more than Y10 bln, concerns base stations that handle the connections between the network and portable terminals and personal computers.
08:28 VDSI VASCO Data Security: Acceleration of U.S. business less likely in near-term - Needham (11.06 )

Needham says they have had recent field discussions with U.S. contacts on the impact of banking regulations for authentication. Firm’s discussions suggest the level of urgency surrounding strong authentication may be hitting a plateau in the U.S. Banks overall are in a comfort zone, believing they are in compliance with FFIEC regulations. Macro concerns are weighing on IT spending in the U.S., with impact on the financial services sector still uncertain. Together, they believe these two factors will make acceleration of U.S. business for VDSI challenging over the next several months.
08:26 HBC HSBC Holdings not considering getting rid of US business - DJ (75.25 ) -Update-

08:24 BONDX Missing the Boat

The market is missing out on an otherwise perfectly solid global flight-to-quality. Overseas bonds were helped higher by the less-than colorful outlook for 08 by HSBC following disclosure of about $17B of bad loan writedowns for 07. Such financial hits are not overly market moving in treasuries these days and trade, instead, is taking some of the froth off the run-up in prices last week. The 2-10-yr yield spread is working its way steeper to 192.7 with long end getting hit a little harder. Bond prices in the EuroZone and Japan were sent higher on the quality bid as equities fell apart. Treasuries saw a significant reversal last week and now face some profit taking with catalysts on the thin side. A look at the broader national manufacturing index today is likely to remove any lingering doubt the contracting regionals were just an anomaly. Bonds could get a boost out of that realization but weakness in manufacturing is mostly priced in (unless its hugely weak). Today’s action looks consolidative but longer term sentiment appears back onside with the positive trend that began in Jun. The dollar has continued to get hit, the euro had been offered heading in, but has recovered, trading near record levels. The yen benefits from carry clean-up trading near its best since early 05, sporting a 102 handle ahead of the session. Gold is working a bid, with spot now 980.89 (+6.72) as the dollar slides and inflation threatens. Crude has slid on profit-taking and upcoming production related event risk with OPEC meetings on the calendar. Data on tap includes construction spending and the ISM manufacturing report (10). Plosser is already out speaking on monetary policy, with Q&A to follow, while gov Kroszner speaks late (14) on risk management. The euro is at 1.5190 and the yen is at 103.2400 while the 10-yr is -11/32 yielding 3.552%.
08:24 CHL China Mobile says keen on iPhone, but not in talks - Reuters.com (74.62 )

Reuters.com reports the co said it had not officially entered into talks with AAPL to bring iPhones to the mainland, but was interested in doing so. “We have not yet officially begun talks with Apple over the iPhone problem,” China Mobile CEO Wang Jianzhou told reporters on the sidelines of an annual parliament advisory body meeting. “As long as our customers want this kind of product, we will keep all options open,” said Wang.
08:24 SMTC Semtech: Trouble in the water; lower tgt to $12 - Caris (12.74 )

Caris reiterates their Average rating on SMTC ahead of tomorrow’s 4Q08 earnings report. While JanQ financial results are likely to be in-line to slightly better than consensus expectations, incrementally negative data points from foundry and distribution checks imply a soft 1Q09 outlook. Furthermore, continued out-performance may also be constrained by a tightening competitive landscape in power management and further ATE related weakness. Firm is lowering their tgt to $12.00 from $15.00 to reflect sector related multiple compression and heightened near-term earnings risk.
08:23 ABK AMBAC Fincl: CNBC commentator says bankers and officials at ABK met with Eric Dinallo over the weekend to try to work out another deal (11.14 )

CNBC commentator says bankers and officials at ABK met with Eric Dinallo over the weekend to try to work out another deal. Says this proposal keeps the co together, and they could be meeting with rating agencies as early as today, possibly to get a deal done early this week. But, says based on last week, its very hard to tell what the rating agencies want. Says there is even talk among consortium members that they may just opt for one AAA rating and see if ABK can go at it from there.
08:22 NEM Newmont Mining eyes IPO to fend off Bumi in Indonesia - FT (51.17 )

FT reports Newmont Mining may list $400 mln worth of shares in its Indonesian gold and copper mine in an attempt to protect the operations from aggressive local rival Bumi Resources. Indonesia has threatened to end Newmont’s contract and take control of the $4.7 bln Batu Hijau mine on the eastern Sumbawa island if Newmont does not sell a 10% stake to regional govts by today… Russell Ball, Newmont’s chief financial officer, said yesterday the US group needed to look at alternatives. “Maybe the time has come for us to look at other Indonesian companies that might be interested in buying the shares including through an IPO,” he said. Newmont raised the possibility of selling an additional 5% stake to the Sumbawa local govt, which has already agreed to buy 2%.
08:21 ALNY Alnylam Pharmaceuticals downgraded to Underperform at Needham (28.40 )

Needham downgrades ALNY to Underperform from Hold saying data reported at the recent Respiratory Viral Infections conference leads them to believe that Alnylam’s ALN-RSV-01 has antiviral activity in humans, an important step forward for RNAi in medicine. However, because the candidate was administered to patients over a 5 day period before and after inoculation with RSV, they believe it is difficult to translate the company’s findings to a real-world setting where ALN-RSV-01 would be administered only after infection. The firm says they therefore await results of the company’s Phase 2 naturally-infected patient study, which is expected to begin in 1H08.
08:19 MER Merrill Lynch: CNBC reports there may be broad-based job cuts at MER very soon (49.56 )

08:19 BA Boeing: NOC upsets BA for tanker contract - Citi (82.79 )

Citi says the Pentagon chose NOC/EADS’ KC-30 over BA’s KC-767. Firm believes NOC’s stock could potentially trade $4 higher on the positive news, while BA should trade down approx $2. Firm increased their 2009 -10 ests by $0.05 and $0.10, respectively for NOC. At a production rate of 15 per year and a 7% margin, they est it will add approx $0.35 by the middle of next decade. Firm lowered BA’s EPS by $0.05 in 2010 due to the lost contract. More importantly, they expected the tanker to offset the discontinuation of the C-17 line, which they expect to complete by the end of 2010 and currently generates over $3 bln in rev and contributes an est $0.40 to EPS.
08:19 MEOH Methanex upgraded to Outperform from Sector Perform at CIBC (28.81 )

08:18 DAI Daimler and GM juice up plans for hybrids - WSJ (83.19 )

WSJ reports the co said its Mercedes-Benz unit is aiming to introduce a hybrid sedan that uses lithium-ion batteries in 2009, signaling that auto makers are confident they will be able to commercialize a technology needed for electric vehicles. This week, GM is expected to claim an advance of its own at the Geneva auto show when it announces it plans to use lithium-ion batteries to upgrade the hybrid powertrains it offers in vehicles such as its Chevrolet Malibu and Saturn Aura models, according to people familiar with the company’s plans. It is unclear when the system will be available. The arrival of lithium-ion batteries for hybrid and electric cars could have a profound impact on the global auto industry. It could make hybrids more viable for the mass market and reduce interest in diesel engines as a path to meeting tougher fuel and emissions standards. In addition to the high cost of lithium-ion batteries, concern about overheating under certain conditions has prevented their widespread use in the auto industry. Daimler said its engineers developed a special system for cooling the battery.
08:16 BOFL Bancshares Of Florida resumed with a Buy at Stifel- tgt $14 (9.36 )

Stifel resumes BOFL with a Buy and a $14 tgt saying Bank of Florida is very much oriented along a private banking model catering to upscale and affluent consumers and entrepreneurs within its South Florida footprint and management relies heavily on local participation by its officers and Boards of Directors to drive loan and deposit growth. The company’s assets under management have grown 47% over the past two years to $500 million. The firm notes their call is early but note that with the shares down 50% over the past year compared to 33% for the SE/FL bank peer group, they believe the bottom is closer than the top.
08:16 PXP Plains Exploration announces $335 mln South Texas producing/development property acquisition; increases FY08 sales vol to 92-96K BOEPD (54.00 )

Co announced that one of its subsidiaries has entered into a definitive agreement to acquire from a private co oil and gas producing properties, covering 67,929 gross acres/34,509 net acres in South Texas for $335 mln. PXP intends to fund the majority of the purchase price with proceeds from the recently completed divestments through the use of a tax deferred like-kind exchange. The transaction is effective as of January 1, 2008 and is expected to close during the second quarter subject to customary closing conditions and purchase price adjustments. PXP today increased its 2008 full year average sales volume range to 92,000 BOEPD - 96,000 BOEPD reflecting the contribution of the proposed South Texas property acquisition. The expected current tax for 2008 has been reduced to a range of $40 mln to $115 mln due to the tax deferred like-kind exchange. PXP will provide updated 2008 full year financial and operating guidance after the acquisition is closed.
08:16 HBC HSBC Holdings faces South Korea setback - FT (75.25 ) -Update-

FT reports South Korea’s financial regulators are not expected to approve HSBC’s $6.3 bln acquisition of Korea Exchange Bank in time for an April deadline, raising doubts about the group’s plans to expand in Asia’s third-largest banking market. HSBC’s offer to buy a 51% stake in KEB from Lone Star, the US private equity group, will expire on April 30 if it has not been approved by regulators. But officials at South Korea’s Financial Supervisory Commission said they did not expect any decision to be made by then. “[We are] looking at the application but we are not likely to make any decision by the deadline,” a senior FSC official in the banking division said.
08:15 WIRES On The Wires

Telestone Technologies (TSTC) announcesthat their Wireless Fiber Distribution System has been listed as a candidate on China Mobile’s annual purchase list… TEPPCO Partners (TPP) announces that its subsidiary, TEPPCO Marine Services, has acquired certain assets of Horizon Maritime for approximately $87 mln… ArcSight (ARST) announces a strategic partnership agreement with Alpha Data… Pfizer (PFE) announces that it has entered into an agreement to acquire Serenex, a privately-held biotechnology co with a Phase I clinical candidate and an extensive compound library that targets Heat Shock Protein. Financial terms of the deal were not disclosed… AeroGrow (AERO) announces that it has now shipped more than one million seed kits since launching the AeroGarden in March 2006. During that same time, AeroGrow also surpassed 400,000 AeroGardens shipped… Syntax-Brillian (BRLC) announces that it has signed an LCD panel supply agreement with LG.Philips LCD on Jan 16, 2008… Broadcom (BRCM)announces that it has acquired Sunext Design and has licensed certain optical disk reader and writer technology from Sunext Technology. In connection with the transaction, which closed on Friday, Feb 29th, 2008, BRCM will pay up to $48 mln in cash in exchange for all of the outstanding shares of Sunext Design’s capital stock and for the license rights granted by Sunext Technology.
08:12 OWW Orbitz: 4Q07 preview; travel slows in ‘08 - Stifel (6.31 )

Stifel says OWW is scheduled to report 4Q07 earnings on March 6, 2008. Firm ests OWW will report 4Q07 results as follows: gross bookings of $2.576 bln, rev of $201 mln and adjusted EBITDA of $36.1 mln. The current 4Q07 mean First Call consensus ests are for rev of $201.2 mln and adjusted EBITDA of $37.0 mln. Firm believes adjusted EBITDA is the best metric to measure the co’s performance given the co’s changes to capital structure and divestiture activity over the last several quarters. Firm believes economic slowdown continues to depress travel trends in the U.S.; weaker travel trends materialized in late 4Q07 as reflected in lower domestic airline passenger counts and domestic hotel occupancy. Year-over-year domestic airline passenger counts declined during each of the last two months.
08:11 States and cities start rebeling on bond ratings - NY Times

NY Times reports does Wall Street underrate Main Street? A growing number of states and cities say yes. If they are right, blns of taxpayers’ dollars — money that could be used to build schools, pave roads and repair bridges — are being siphoned off in the financial markets, where the recent tumult has driven up borrowing costs for many communities. A complex system of credit ratings and insurance policies that Wall Street uses to set prices for municipal bonds makes borrowing needlessly expensive for many localities, some officials say. States and cities have begun to fight back, saying they can no longer afford the status quo given the slackening economy and recent mkt turmoil. Municipal bonds, often considered among the safest investments, sank along with stocks last week, darkening the already grim mood in the mkts. Some officials complain that ratings firms assign municipal borrowers low credit scores compared with corporations. Taxpayers ultimately pay the price, the officials say, in the form of higher fees and interest costs on public debt.
08:11 BMR BioMed Realty upgraded to Buy at Stifel- tgt $25 (21.92 )

Stifel upgrades BMR to Buy from Hold with a $25 tgt saying they believe the Implied NOI and Cash Flow metrics are very attractive at 7.9/7.3%, while valuing the construction-in-progress and redevelopment pipeline at Book Value. The firm expects BMR to grow its current $1.24/share dividend by 6% shortly, and estimated 2008 dividend/FAD will be only 88%. The firm expects sizeable value creation from the value-add opportunities, which should be very accretive because of a reasonable (4Q0 52% debt plus preferred to total market capitalization.
08:10 NILE Blue Nile initiated with a Buy at Stifel- tgt $54 (44.16 )

Stifel initiates NILE with a Buy and a $54 tgt saying Blue Nile has turned the retail jewelry business on its head by showcasing diamonds as commodities. The firm notes traditional jewelers work on a mid-50% gross margin and a high-40% operating expense structure. Traditional jewelers have stores, inventory, and commissioned sales people. Blue Nile works on a low-20% gross margin and an 11%-to12% operating expense structure. The firm notes NILE generates over $1.7 million in revenue per employee, has a negative 45-day cash conversion cycle, and spends only 12% of its operating cash flow on capital expenditures. They say NILE’ss capital efficiency makes a continuation of the co’s recapitalization efforts a high probability event.
08:10 TMA Thornburg Mortg announces additional margin calls of approximately $270 mln; says it has not met the majority of its most recent margin calls (8.90 ) -Update-

Co announced that since February 28, 2008, the filing date of its 10-K Annual Report, the co has been subject to additional margin calls of approximately $270 mln on its reverse repurchase agreement borrowings outstanding as of February 29, 2008. The co has not met the majority of its most recent margin calls, but it is working to meet all of its outstanding margin calls within a time frame acceptable to its lenders by either selling portfolio securities or raising additional debt or equity capital. These margin calls are strictly the result of continued deterioration of prices of mortgage-backed securities precipitated by difficult market conditions, but are not a reflection of the credit performance or long-term realizable value of Thornburg Mortgage’s high quality portfolio, which continues to remain exceptional. As of February 27, 2008, TMA had met all margin calls, including margin calls received between February 14 and February 27, 2008, in an amount in excess of $300 mln, on our reverse repurchase agreements, the substantial majority of which were related to the decline in valuations on our super senior mortgage securities backed by Alt-A mortgage loans. The significant majority of those margin calls was triggered because of continued excess supply of similar types of securities into the market. After meeting all of its margin calls as of February 27, 2008, TMA saw further continued deterioration in the market prices of its high quality, primarily AAA-rated mortgage securities, which triggered additional margin calls. As a result of successfully meeting its margin calls as of February 27, 2008, the co was left with limited available liquidity to meet its current margin calls as well as any future margin calls. There is no assurance as to TMA’s ability to sell such assets or raise additional funds in the current market at acceptable prices, or to raise additional capital. If the co is unable to satisfy outstanding margin calls, any or all of its reverse repurchase agreement counterparties may declare an event of default and liquidate the pledged securities. Such an occurrence would have a material adverse effect on the co’s ability to continue its business in the current manner. The co is currently in default with one reverse repurchase agreement counterparty and is working with that lender to repay the debt and the lender has not yet exercised its right to liquidate pledged collateral.
08:09 KAMN Kaman: 4Q07 follow-up; buy on weakness; prospects remain solid - Stifel (24.00 )

Stifel says in their opinion new CEO Neal Keating’s conf call was well done with details and explanations. They believe Friday’s selling was overdone, some of which was due to confusion related to estimates that included discontinued operations, not to mention the market being down 300+ points. Firm adjusted their 2008 forecast to EPS of $2.10 on rev of $1.184 mln from $2.22 on rev of $1.197 mln as the Wichita situation is expected to continue over the first half of the year.
08:08 PMTI Palomar Medical enters new license agreement with Procter & Gamble for home-use light-based hair removal devices (13.31 )

Co announces that it has entered into a non-exclusive License Agreement with The Procter & Gamble Company (PG) to exploit home-use light-based hair removal devices for women. This new agreement replaces the Development and License Agreement entered into by PMTI and The Gillette Company, (a wholly owned subsidiary of PG) on Feb 14, 2003, as Amended and Restated on Feb 14, 2007, and as further amended thereafter. Under this new agreement, PG retains a non-exclusive license to PMTI’s broad patent portfolio as well as a non- exclusive license to the extensive technology developed by PMTI before and during the five year term of the prior agreement. Prior to launching a commercial product, PG will pay PMTI $1.25 mln per calendar quarter. Following commercial launch PG will pay PMTI per product sales under a confidential financial arrangement which addresses both the patents and technology which are licensed.
08:08 HUGH Hughes Communications reports Y07 EPS of $2.26 vs $1.98 single estimate; reports revs up 13% yr/yr to $970 mln vs $952.7 mln single estimate (46.73 )

08:08 MRK Merck Progress report on enrollment in program to resolve U.S. VIOXX product liability lawsuits; more than 49,000 claimants initiated enrollment for interim payments (44.30 )

Co announces that more than 44,000 of the approximately 47,000 individuals who registered eligible injuries have submitted some or all of the materials required for enrollment that could qualify them for an interim payment in the program to resolve state and federal myocardial infarction and ischemic stroke claims filed against the co in the United States. If all of these eligible submissions are completed in accordance with the Settlement Agreement, this would represent more than 93% of the eligible MI and IS claims previously registered with the program. In addition, approximately 5,000 other claimants have also sought to enroll and their eligibility status still has to be determined.
08:07 PXG Phoenix Footwear reaffirms Y08; closes Altama transaction (1.83 )

Co reaffirms Y08 revs of $95-100 mln vs $96.2 mln single estimate; co reaffirms income from operations of $2.0-2.5 mln. Co announces it has received a $14.3 mln from Tactical Holdings as payment under obligations related to Tactical’s acquisition of the co’s Altama Delta division in Dec. Co reduces bank debt to $11.3 mln and is expected to be largely paid off by end of Y08.
08:06 PQ PetroQuest Energy announces discovery at its Pelican Point prospect (15.76 )

Co announces a discovery at its Pelican Point prospect located in Terrebonne Parish in Southeast Louisiana. The company has an approximate 22% net revenue interest in the well which logged approx 147 feet of net pay in the primary Rob L objective. Casing has been run to the well’s total depth of 18,970 feet true vertical depth and the well is currently being completed. Production is expected to begin within two to three months at an initial gross rate of approx 20,000 Mcfe per day.
08:06 ETFC E*TRADE confirms it has named Chairman Donald Layton as Chief Executive Officer, effective immediately (4.27 ) -Update-

Co confirms that it has unanimously elected Chairman Donald Layton, as Chief Executive Officer, effective immediately. Mr. Layton was elected Chairman of the Board on November 29, 2007, after serving as an advisor to the Board during negotiations that led to the co’s previously announced $2.5 billion cash infusion. Jarrett Lilien, who was appointed acting CEO on November 29, 2007, will resume his role as President and Chief Operating Officer and remain a Director of the Company.
08:04 JBL Jabil Circuit: Cutting ests; stock has further downside - Lehman (12.92 )

Lehman says follwing JBL’s presentation at a competitor’s conf last week and firm’s own discussions with the co, they are lowering their FY08 cash EPS est from $1.30 to $1.17. Firm is also trimming their FY09 cash EPS est from $1.65 to $1.52. The stock may start to recover as they move into FY09 but in the near-term, firm believes JBL still has a significant downside risk - they would not be surprised if the stock trades below $10.
08:04 JASO JA Solar: Positive bias into earnings - Lehman (14.29 )

Lehman remains favorably disposed to JASO into earnings on 3/12 as they believe shares are fully discounting risks to 4Q07 earnings from higher operating expenses and concerns over polysilicon supply issues. Firm believes Q4 results should act as a positive catalyst post what has been a disappointing earnings season for the solar sector. Firm is adjusting their ests and tgt to account for the recent 3:1 split. Firm is also lowering their 4Q07 ests to account for higher operating expenses. Firm’s Q407 ests move from $0.12 to $0.08, their 2008 ests remain unchanged at $0.83 (vs. consensus $0.69).
08:04 PXG reaffirms Y08 revs of $95-100 mln

08:04 Biotechnology: Opportunities emerging in small-mid cap - Lehman

Lehman expects U.S. Biotechnology stocks to generally trade in line with the broader market over the next 6-12 months. While macroeconomic concerns in 1H08 could continue to drive fund flows towards defensive names in healthcare, and while biotechnology appears less sensitive to election year uncertainty than other healthcare subsectors, firm expects fundamental concerns regarding large cap growth to prevent sustained outperformance over the course of the year. Overall top large cap picks remain GILD, CELG, and GENZ with opportunistic buying of AMGN advised on ODAC panel briefing documents. Top small-mid cap picks include ONXX, UTHR, CEPH, CVTX and ACAD.
08:03 NPO Enpro Industries authorizes $100 mln share repurchase program; approx $50 mln to occur immediately through accelerated share repurchase agreement (29.53 )

08:03 USHS US Home Systems announces revision of SFI agreement with the Home Depot Home Services; deck products to be phased out of HD mkts (4.49 )

Co announced that The Home Depot and the co have mutually agreed to extend the service provider agreement until February 28, 2011 and to phase out the sale and installation of the co’s wood deck products in all The Home Depot markets. In addition, the co and TheC Home Depot agreed that effective immediately, the co will cease selling its deck products in the Midwest, Boston, Connecticut, Virginia Beach and Atlanta Home Depot markets. U.S. Home Systems does not intend in the future to offer its deck products in these markets. Revenues from these markets were approximately $6 mln in 2007. The co will continue to sell and install, on a non-exclusive basis, its deck products under The Home Depot brand until August 31, 2008 in the Northeastern markets, including Northern Virginia, Maryland, Philadelphia, New Jersey and New York. U.S. Home Systems will also begin offering its deck products in these markets under its Designer Deck brand concurrently with the phasing out of The Home Depot markets. The co will continue to manufacture wood deck component parts and related accessories at its Woodbridge, Virginia facility to serve these markets.
08:03 S&P futures vs fair value: -3.6. Nasdaq futures vs fair value: -3.5.

Futures indicate a modestly lower start. In corporate news, United Technologies (UTX) made a $2.6 billion bid for Diebold (DBD) and Ambac (ABK) announced it is cuttings its dividend. Meanwhile, Gold climbed to a fresh non inflation adjusted higher. It is currently up 1% to $984.60 per ounce. Asian markets saw steep losses. The Nikkei shed 4.5% and the Hang Seng fell 3.1%. European bourses are trading lower. The FTSE is down 1.6% and the Dax is down 1.6%.
08:03 NOC Northrop Grumman: Aerospace & Defense: Northrop Grumman/EADS win; BA loses - Lehman (78.61 ) -Update-

Lehman says the USAF picked NOC and EADS, N. America to provide aerial refueling tankers in an award valued at $35 bln. With no commercial demand expected, the 767 line should close after 2010. An initial $1.5 bln contract will provide R&D and funding for 4 initial aircraft. BA could protest, delaying the onset of work at EADS and NOC; firm believes it would backfire. With the exception of winners, NOC and EADS and loser BA, and perhaps engine suppliers, no major or even measurable impacts on supplier earnings less than 1-2% but not until 2011. BA had included Tanker in its plans, while NOC and EADS probably had not; therefore these shares might react sharply, on the order of 2% to 3%, perhaps as much as 5%. Supplier shares particularly SPR, COL, and perhaps UTC already been under pressure due to worries about the weak economy could well trade off in sympathy.
08:03 IRBT IRobot receives award for DARPA LANdroids program (18.32 )

Co announces it has received an award under the Defense Advanced Research Projects Agency’s LANdroids program. Through this multi-year robotics research and development program, iRobot will develop a new portable communications relay robot that is small, inexpensive, intelligent and robust.
08:02 CFC Countrywide’s mortgage woes deepen - WSJ (6.31 )

WSJ reports the co’s mortgage portfolio continues to deteriorate rapidly as defaults increase and home prices fall, a securities filing shows. The lender’s annual filing with the SEC, showed a big increase in late payments on option adjustable-rate mortgages, known as option ARMs. As of the end of 2007, payments were at least 90 days overdue on 5.4% of option ARMs held as investments by Countrywide’s banking arm, up from 0.6% a year earlier. Countrywide held $28.42 bln of such loans as of Dec. 31. The co said 71% of the borrowers were making minimal payments. Only about a fifth of the borrowers were required to document fully their incomes before receiving the loans… Countrywide disclosed that half of the $87.04 bln of mortgage loans held by its bank are backed by homes in California and Florida, two of the states hit hardest by falling home prices.
08:02 Plosser says switch from normal policy should be temporary, promptly reversed when conditions stabilize

08:02 PIR Pier 1 Imports upgraded to Outperform from Market Perform at Wachovia (5.24 )

08:02 NETM NetManage to remain an independent company (4.78 )

Co announces that Rocket Software has informed NetManage that Rocket failed to secure the financing required to complete the proposed acquisition of NetManage within the contracted timeframe and, as a result, terminated the merger agreement.
08:01 AMS American Shared reports Q4 EPS of $0.04 vs $0.07 in yr ago period; reports revs up 73% yr/yr to $8.3 mln with no estimates (2.60 )

08:01 ISYS Integral Systems’ Board approves $22.4 mln private purchase of 1,064,972 shares of common stock (24.34 )

08:01 BRLC Syntax-Brillian signs LCD panel supply agreement with LG.Philips LCD (0.71 )

Co announces that it has signed an LCD panel supply agreement with LG.Philips LCD. Under the terms of the agreement LG Philips guarantees to supply Syntax-Brillian with a minimum of 750,000 LCD panels during 2008 for 32″-type, 37″-type, 42″-type, 42″full-HD-type and 47″full-HD-type sizes, with the option to purchase additional LCD panels as needed based on market demand.
08:01 Plosser says severity of financial events suggests rates should be “somewhat lower” than rules dictate

08:01 FVE Five Star Quality Care beats by $0.02, reports revs in-line (7.17 )

Reports Q4 (Dec) earnings of $0.20 per share, $0.02 better than the First Call consensus of $0.18; revenues rose 7.1% year/year to $251.2 mln vs the $250.7 mln consensus.
08:01 ALXA Alexza Pharma says AZ-104 Phase 2a trial meets primary endpoint of 2-hour pain relief in patients with migraine headache (6.32 )

Co announces positive top-line results from its 168 patient Phase 2a clinical trial of AZ-104 in patients with migraine headache. Two doses of AZ-104, 2.5 and 5 mg, met the primary endpoint of 2-hour pain-relief compared to placebo.
08:01 Plosser says current situation dictates that policy cannot focus solely on inflation, growth swings - Reuters

08:01 Plosser says financial turmoil has already hit economy, has potential to restrain growth going forward

08:00 DT Deutsche Telekom upgraded to Neutral from Underweight at J.P Morgan (18.89 )

08:00 LGND Ligand Pharma partner GlaxoSmithKline receives FDA acceptance and granted priority review for Promacta NDA (3.39 )

Co announces that the United States Food and Drug Administration has granted Priority Review for Promacta for the short-term treatment of patients with chronic idiopathic thrombocytopenic purpura. Promacta is an investigational, once-daily oral treatment that induces the production of cells in the bone marrow to generate platelets, which are critical in minimizing the incidence of bleeding in chronic idiopathic thrombocytopenic purpura. If approved, Promacta would be the first oral thrombopoeitin receptor agonist for the short-term treatment of previously treated patients with chronic idiopathic thrombocytopenic purpurato increase platelet counts and reduce bleeding.
08:00 FVE prelim $0.20 vs $0.18 First Call consensus; revs $251.2 mln vs $250.69 mln First Call consensus

07:59 LULU Lululemon Athletica upgraded to Market Perform from Underperform at BMO Capital (26.90 )

07:56 MU Micron, Mosaid must return to lower court - WSJ (7.52 )

WSJ reports the co and Mosaid Technologies may be back in California court after a U.S. appeals court ruled the lower court has jurisdiction. The District of Columbia court cited a 2007 U.S. Supreme Court ruling that the U.S. court for the Northern District of California can decide if Micron is infringing on 14 of Mosaid’s patents on DRAM technology. Mosaid sued Micron in 2006 after Micron rejected licensing Mosaid patents. The D.C. court cited the ruling lowering a barrier for patent licensees to sue a patent holder over the validity of a patent.
07:56 Wedbush says the gap between weakening broader economic indicators and the impact being felt by enterprise software vendors could be widening

Wedbush says the gap between weakening broader economic indicators and the impact being felt by enterprise software vendors could be widening, causing us to believe that if or when the weakening U.S. economy trickles down to the enterprise software industry the result could imply further downward pressure on shares. Firm continues to advise investors to remain on the sidelines over the next few months and then selectively accumulate shares of software market leaders. If another substantial market sell-off occurs, firm potentially could become more constructive on shares of CRM, TLEO, and ULTI; firm currently recommends BBBB.
07:56 CVC Cablevision downgraded to Sell at Pali Research- tgt $22 (26.79 )

Pali Research downgraded to Sell from Buy and cuts their tgt to $22 from $47 saying the main risk in owning Cablevision stock has almost always been the proverbial “Dolan Discount.” Following the last failed go-private attempt in October 2007, the firm believed the Dolans were waiting for credit markets to improve and would simply try to go private again or at least return capital through dividends or share repurchase. Given that they believe the Dolan family has no interest in selling CVC to Time Warner Cable or any other potential buyer and that it is now focused on utilizing its building free cash flow for a series of acquisitions, which they believe will be very poorly received by investors.
07:54 SCANX Early pre-market gappers

Gapping up: DBD +61.7%, FMT +7.0%, NOC +6.1%, SLM +4.8%, HMY +3.4%, GFI +2.9%, STXS +2.3%, GOLD +2.1%, ETFC +1.9%, OSIP +1.6%, PIR +1.5%, SLV +1.3%, AEM +1.2%, DV +1.1%… Gapping down: FRPT -20.4%, DFR -15.3%, SCA -4.6%, BA -4.0%, LLNW -3.8%, JRJC -3.1%, RTP -2.9%, SYT -2.3%, AHR -1.4%, BP -1.4%.
07:52 HLTH HLTH Corp downgraded to Market Perform from Stong Buy at Raymond James (11.84 )

07:52 OPEC dilemma; to cut or not to cut - Oppenheimer

Oppenheimer says a production cut by OPEC could spike oil prices, induce a recession, and fuel inflation, which would curtail demand and trigger a selloff in oil futures by speculators that could sink oil prices. However, by not cutting production in response to the weak demand, OPEC risks an oil glut and sharply lower prices. Firm believes oil prices are inflated by speculation, as reflected by the 50% price rise in six months without changes in supply or demand. However, given the government inability, or unwillingness, to regulate the energy markets, don’t expect the oil price bubble to burst anytime soon.
07:51 AAPL Apple: MacBook Air demand stays strong, sold out often - ars technica (125.02 ) -Update-

Ars technica reports it might not be the iPhone, but the MacBook Air is selling much stronger than many of us would have guessed. After a full month of being on the mkt, the MacBook Air is still a difficult commodity to obtain in some mkts (not all), and Apple is still quoting a 5-7 business day minimum shipping time even for the most standard models ordered from its web site. Meanwhile, Amazon won’t be shipping orders until March 16 now, and many customers who run to a Best Buy thinking they’ll find one hiding out there will be surprised: there aren’t many to go around. One Best Buy source (not a retail floor worker) told me that Apple has kept them pretty thin on stock.
07:50 PSO Pearson Plc reports Y07 EPS of 39.0p vs 52.6p in yr ago period; reports revs up 6% yr/yr to GBP4.2 bln (13.24 )

07:49 GEHL Gehl beats reports Q4 results; guides FY08 EPS below consensus; sees lower gross margin in 2008 (16.03 )

Reports Q4 (Dec) earnings of $0.38 per share, includes lower tax rate, may not compare to the First Call consensus of $0.24; revenues fell 1.4% year/year to $102.2 mln vs the $93.3 mln single estimate. Co issues guidance for FY08, sees EPS of $0.95-1.20 vs. $1.52 consensus; sees FY08 revs of $405-425 mln vs. $411.50 mln single estimate. The Company intends to continue to reduce North American field inventory levels in 2008 to position dealer inventory levels in advance of new product introductions in 2009. Gross margin in 2008 is expected to decline due to a change in product mix, increasing commodity costs, primarily steel, and lower production volumes compared to 2007. In addition, operating expenses will increase due to planned incremental investments in product research and development, information technology projects and programs designed to enhance dealer communication totaling approximately $3.2 million.
07:48 HMIN Home Inns: Challenging quarter ahead despite solid execution - Brean Murray (27.13 )

Brean Murray expects HMIN to report 4Q07 rev modestly above expectations; however, they see risks to consensus EPADS ests primarily due to a continued negative impact from the TopStar acquisition. Firm believes that mgmt will provide conservative 2008 rev guidance and TopStar may remain a negative factor through 2Q08. Firm lowers their rev and earnings ests from 2008 onward to reflect the impact of TopStar resulting in a less favorable hotel mix. They believe that current consensus ests have not fully incorporated such risks. While they still have confidence in mgmt’s execution, the lack of a near-term positive catalyst will keep firm on the sidelines for now.
07:48 STEN Sterion guides Q2 revs to exceed $4.2 mln, expects to be profitable; FY08 revs to exceed $15 mln (1.38 )

Co announced that based upon results through February 2008, revenue for the second quarter ending March 31, 2008 is expected to exceed $4.2 mln, more than double the $2.1 mln in revenue in the co generated in the first quarter of fiscal 2008. The co also stated that it expects to be profitable in the current quarter. For the fiscal year ending September 30, 2008, the co’s outlook is for total revenue to exceed $15.0 mln, which is more than triple last year’s total revenue from continuing operations of $4.6 mln. The co’s business plan currently indicates that it will operate profitably for the balance of the fiscal year ending September 30, 2008.
07:46 GEHL sees FY08 $0.95-1.20 vs $1.52 First Call consensus; sees revs $405-425 mln vs $411.50 mln First Call consensus

07:46 SGMS Scientific Games: Brean Murray reducing ests as slower growth is partially offset by China expectations; tgt cut to $17 (20.67 )

Brean Murray is reducing their 2008 and 2009 EPS ests $0.05 to $1.08, as lower expectations for domestic instant ticket rev and margins are only partially offset by what they now believe should be a relatively low-cost ramp-up in China. Although little has gone according to plan for SGMS internationally, (ex-Italy) mgmt indicated that its joint venture structures and ability to initially import product into China should drive immediate profits. Firm still believes this will be a slow ramp to significance, especially until the implementation of a cost structure in China that matches rev. At this point, firm is not projecting increased costs, though they do suspect that SGMS’s expected margin improvements will not be fully realized. Firm cuts tgt to $17 from $18
07:46 AAPL Apple: BofA tgt cut details (125.02 ) -Update-

As mentioned at 7:21 BofA cut their tgt on AAPL to $160 from $180 given recent production data points from Asia, and continued U.S. consumer weaknesss. The firm says lowers their F2Q08 iPod sales estimate to 9.97 mln units from 11.08 mln units and their iPhone sales estimate to 1.2 mln units from 1.6 mln units, due to continued production weakness.
07:46 GEHL prelim $0.38 vs $0.24 First Call consensus; revs $102.2 mln vs $93.30 mln single estimate

07:45 BHP BHP Billiton invests $975 mln in South Africa coal project - Reuters (73.18 )

Reuters reports the co said it plans to invest $975 mln to upgrade and expand its thermal coal mines in South Africa to sustain coal exports amid soaring coal prices. BHP approved an investment plan to develop new coal reserves across its Douglas and Middleburg collieries in South Africa and build a coal processing plant with a capacity of 14 mln tons a year, BHP said. BHP said the new coal processing plant would replace the existing, less efficient washing plant at Douglas mine. The expansion project will enable BHP Billiton to maintain energy coal exports from its Douglas and Middleburg colleries at current levels of 9.5 mln tons a year as well as fulfill its domestic contractual commitments.
07:43 OFIX Orthofix: Dawson James believes their $60 tgt is a very reasonable price objective; may have inadvertently put itself in play (40.05 )

Dawson James maintains their $60 tgt and reiterates their Buy on OFIX reflecting the 28% negative over-correction in Orthofix’s stock resulting from a disappointing reported Q4 GAAP Loss per share of $0.62. Although firm recognizes that other recent transactions in the orthopedic industry may have carried higher valuations, a transaction at $73 per share, with the assumption of the $300 mln in debt the co took on to acquire Blackstone Medical, would value such a transaction at $1.29 bln or about 3.0X the mid-point of the recently issued guidance for 2008 revs. Reaching firm’s tgt would net investors in the stock more than a 50% return. Even allowing for some discount because of uncertainty, they believe their $60 tgt is a very reasonable price objective.
07:40 January semiconductor sales essentially flat with 2007

Worldwide sales of semiconductors in January were $21.5 bln, a nominal increase of 0.03% from January 2007, the Semiconductor Industry Association reported today. Sales declined by 3.6% from Dec 2007 when the industry reported sales of $22.3 bln. SIA said the sequential decline in sales was in line with traditional seasonal patterns for the industry. “Virtually all product lines and all geographic markets experienced slightly lower sales in January,” said SIA President George Scalise. “Unit shipments of DRAMs and NAND flash grew modestly in January. Even with healthy demand from important end markets, however, a very competitive environment resulted in price pressures for these products which in turn led to continued erosion in average selling prices. Excluding memory products, semiconductor sales were up by 8.1% year-on-year.” Unit shipments of personal computers and cellular handsets were in line with expectations in January. Analysts are projecting unit growth of around 12% for PCs and 12-15% for cellular handsets in 2008.
07:38 APOL Apollo Group downgraded to Sell at BofA- tgt $55 (61.38 )

BofA downgrades APOL to Sell from Buy and cuts their tgt to $55 from $90 given several uncertainties that they believe make it difficult to justify the company’s current valuation premium to the market’s multiple. Firm says key concerns are declining start growth impacting enrollment growth; increasing reliance on higher risk Axia College students; secular shift to a slowing growth profile, and pace of international expansion given its importance as a driver of growth in the future. The firm also highlights the potential further deterioration in student lending environment which would begin to more directly impact the co and corporate tuition reimbursement risk.
07:38 February retail sales preview - Merriman

Merriman says most retailers are expected to report Feb sales results on Thurs, March 6. They believe sales trends during February may have remained difficult for most retailers. While firm believes most retailers are well-positioned for spring with planned lower inventory levels, they believe it may be too early to get a solid indication on sales trends for the season. According to FirstCall, analysts est that total retail comparable-store sales for Feb should increase 1.3%. Firm expects CBK February comps to be negative, CACH comps to be flat and WTSLA comps to be slightly negative.
07:37 Chavez sends forces to Colombian border - Intl Herald Tribune

Intl Herald Tribune reports President Hugo Chavez of Venezuela threatened Colombia with war on Sunday, mobilizing troops, tank units and fighter jets near the border between the countries after Colombian security forces killed a senior guerrilla in a rebel group that has warm ties with Venezuela’s govt. Seventeen members of the Revolutionary Armed Forces of Colombia, or FARC, Latin America’s largest insurgency, were killed in Ecuadorean territory on Saturday. The killing has also generated a fierce diplomatic reaction from Ecuador and Venezuela. President Rafael Correa of Ecuador, a supporter of Chavez, described the operation by Colombian troops as a “massacre” and a violation of Ecuador’s sovereignty. He withdrew his ambassador from Bogota, while Chavez said he was shutting down Venezuela’s embassy there. Rhetorically at least, Chavez’s threat points to one of the most tense moments between Venezuela and Colombia in recent decades. Whether or not the saber-rattling produces conflict, Chavez stands to benefit from a distraction from social problems here, like food shortages and surging inflation. Chavez couched his warning by saying he would react in the event of a Colombian raid to hunt down guerrillas in Venezuela. He taunted President Alvaro Uribe of Colombia, a Bush administration ally, calling him a “mafia boss,” “criminal,” “liar” and “lackey of the empire.”
07:35 CSTR Coinstar: Merriman believes the timing of this 10b5-1 plan could indicate that a Redbox IPO is likely to occur over the next year (29.16 )

Merriman believes the timing of this 10b5-1 plan could indicate that a Redbox IPO is likely to occur over the next year for two main reasons: 1) stock trading plans can only be adopted when mgmt is not aware of any material non-public information — and if there is the potential for a Redbox IPO later this year, the CEO would have to adopt a plan now as he would be restricted during the IPO process; and 2) this trading plan is only effective through Feb 21, 2009 — indicating the CEO’s belief that CSTR shares have the potential to appreciate more than 70% to $50.00 over the next year (which, they believe, is even more likely to occur should a Redbox IPO be filed and completed during that period).
07:34 COMDX Gold powers to all-time high as US dollar falls - Reuters

Reuters reports that spot powered to a record high in Asia on Monday as a fall in the dollar to a historic low against a basket of major currencies and the strength of oil prices prompted fund buying. Gold jumped to a record high of $979.20 an ounce in electronic trading in Asia, surpassing the previous record of $975.90 reached on Friday. In the Asian morning session Monday, gold was trading at $978.60/979.40 compared with $973.30/973.75 in late U.S. levels on Friday. The dollar’s sharp slide deepened on Monday when it fell to a record low against a basket of major currencies as expectations for more aggressive Federal Reserve interest rate cuts ignited selling of the U.S. currency. Other precious metals were well-supported in line with the strength of gold prices. Spot silver firmed to around $19.83/19.88 per ounce. Platinum fell to $2,148/$2,153 an ounce. It had reached a record high of $2,192 on Feb. 22.
07:34 BCS Barclays seals Expobank deal in Russia - Times of London (37.57 )

Times of London reports the co shrugged off the political uncertainties swirling through Russia as it unveiled a $745 mln deal to buy Expobank, a retail and commercial bank concentrated in Moscow and St Petersburg in the country’s western region. Although Barclays Capital, the investment banking arm of the UK’s third-largest bank, has a representative office in Russia, the acquisition marks Barclays entry into retail banking in the country.
07:33 F Ford Motor: Downgrade details (6.53 )

As mentioned at 6:29 Citigroup downgraded F to Sell from Hold and cut their tgt to $5.50 from $7 saying they see a number of rising headwinds in the co’s turnaround including the limited potential for a second round of UAW attrition with comparable or better acceptance rates than the first round, and the low likelihood of Ford’s relatively older product lineup holding U.S. share in H1 2008.
07:32 February 2008 softlines sales preview - FBR

Friedman Billings continues to believe that going forward, they will continue to see a very sharp split between the winners and the losers. During Feb, the winners showed consistently strong traffic, tight inventory control, and lower year-over-year levels of promotion (particularly CHIC, GYMB, and URBN). The losers (including ANN, CHS, HOTT, and TLB) continue to struggle to drive traffic, despite increased levels of promotion. Firm feels that teen/young adult retailers generally outperformed all others in Feb, as teens and young adults were out shopping new spring merchandise. Furthermore, firm continued to be disappointed by traffic and promotional trends in the Missy space.
07:32 WIRES On The Wires

Pharmacopeia (PCOP) announces the initiation of a Phase 2b clinical study of PS433540… Glu Mobile (GLUU) announces that as of 3:00 p.m. GMT on Feb 29, 2008, it had received valid acceptances representing approximately 75.6% of the issued share capital of Superscape Group through its tender offer.
07:31 NVDA NVIDIA initated with a Neutral at Pipper Jaffray (21.39 )

07:30 EQ Embarq Board of Directors names Tom Gerke as CEO (41.94 )

Co announces it has named Tom Gerke, 51, a senior telecommunications executive, as CEO of the company, effective immediately. Gerke has been interim CEO since Dec 18, 2007.
07:30 IRIS IRIS Intl Board approves repurchase of up to $15 mln in common shares (11.27 )

Co announced that the Board of Directors has authorized the co’s repurchase of up to $15 mln in shares of common stock over a twelve month period. The co expects to fund the share repurchase from cash on hand.
07:30 PRICE Filings, Offerings, Pricings and IPOs

Filings: Central European Dist (CEDC) files for a mixed shelf offering; announces a $310 mln convertible notes offering under the shelf registration statement… Alanco Technologies (ALAN) files an S-3 relating to a 5.57 mln share common stock offering by selling shareholders… Dynex Capital (DX) files for a $1 bln mixed shelf offering… Joes Jeans (JOEZ) files for a 2.33 mln share common stock offering by selling shareholders… Offerings: NuVasive (NUVA) announces a $200 mln convertible notes offering.
07:29 CALM Cal-Maine Foods profiled in New America section of IBD (34.50 )

IBD reports the wholesale price of eggs also has soared amid strong demand. That’s been good for business at Cal-Maine Foods, the nation’s largest producer and distributor of fresh shell eggs… The industry has gotten a lift from positive reports from the medical and nutritional communities. Eggs represent a good value compared with other foods, CEO Fred Adams said. As a result, demand was strong from the retail and food-service mkts as well as for liquid, frozen and dried eggs. The export mkts also has been strong… The egg mkt is highly cyclical. Cal-Maine, for one, has been hurt during down cycles. Now, Cal-Maine is reaping the benefits of the sizzling egg mkt. “There’s almost a perfect storm emerging,” said Cindy McGarrigle, vice president for industry programs at the American Egg Board. On the supply side, there’s been a gradual increase in cage space for hens as part of an effort to assure that hens are treated humanely. Allocating more cage space has reduced the overall flock size, McGarrigle says. Fewer hens have led to fewer eggs, which has placed downward pressure on supply… McGarrigle says there is a worldwide shortage of eggs, with an increased demand for exports that has put pressure on the egg supply here. Eggs are a good, inexpensive source of protein. Another factor that influences the price of eggs is the cost of feed — corn and soybean meal. The prices of the key crops, corn and soybeans, are near all-time highs. Mkt prices for corn remain higher, in part because of increasing demand from ethanol producers, says a Cal-Maine report… Still, watchers are cautious. High profits will push producers to get more eggs into the mkt, Michael Swanson, an agricultural economist at Wells Fargo Bank, says.
07:29 ENTR Entropic Comms initiated with an Buy at Piper Jaffray (5.92 )

07:29 CMVT Comverse Tech: Ramping business momentum maksed by accounting reviews - Oppenheimer (16.47 )

Oppenheimer is reiterating their Outperform and $25 tgt on CMVT as their proprietary channel checks indicate that business trends are growing nicely into FY08. Firm sees strong momentum across all segments, with notable strength in billing and from NetCentrex, and they believe CMVT exited 4Q07 with double digit operating margins (~12.4%) driven by improved operational efficiencies. In addition, firm believes CMVT exited FY07 with backlog exceeding $900 mln (up 7% from the last officially reported metrics in 2Q07) providing good visibility into FY08. CMVT remains unable to disclose financial data or discuss the timing of its reviews.
07:28 EGLT Eagle Test Systems initiated with an Buy at Piper Jaffray (10.47 )

07:27 ISLE Isle of Capri downgraded to Hold at Brean Murray (9.05 )

Brean Murray downgrades ISLE to Hold from Buy as a difficult economic environment, lower valuation multiples throughout the sector and the potential for a smoking ban in Iowa may prove to be too difficult for the new management team to overcome. They believe management will drive continued progress on the cost side through expense reductions and more efficient marketing strategies; however, revenue growth will likely be more difficult to attain over the next few quarters, limiting the positive impact of management’s actions and upside in the shares.
07:26 Internet sector downgraded to Neutral from Positive at Pipper Jaffray

07:26 CHK Chesapeake Energy: Calyon raising ests on higher production (45.22 )

Calyon says CHK reported Q4 results last week ahead of expectations on higher natural gas price realizations and lower operating costs. CHK raised 2008-09 capex and production guidance. Firm increases their 2008 ests to $3.30/$8.70 from $3.20/$8.60 and their 2009 ests to $2.95/$9.40 from $2.80/$9.00.
07:25 GOOG Google: In GOOG’s words: Fewer clicks will mean more ad spending; a year’s effort to improve adsense in advance of a major push with DCLK’s branded ad customers - Susquehanna (471.18 )

07:24 PSYS Psychiatric Solutions removed from Focus List at J.P Morgan (28.29 )

07:24 Auction supply “tsunami” foreshadows deeper municipal losses - Bloomberg.com

Bloomberg.com reports U.S. states and local govts may extend the worst slump in municipal bonds on record as they replace as much as $166 bln of auction-rate securities. California, Boston’s biggest hospital and Duke Energy (DUK) are converting their bonds to other types of tax-exempt debt after auction failures drove rates as high as 20% The potential supply equals almost 40% of the municipal securities sold last year, overwhelming a mkt that tumbled 4.9% last month, according to indexes maintained by Merrill Lynch, which began compiling mkt data in 1989. Rates increased last month as investors shunned the securities on concern the insurers that guaranteed the debt may be downgraded, and as dealers refused to buy bonds that went unsold at auctions. The higher borrowing costs are squeezing states and towns just as slowing growth threatens to cut revenue. “It’s a supply tsunami,” said Robert Fuller, principal of Capital Markets Mgmt, a financial adviser to municipalities. “All of that is going to be redone and it’s going to be redone fast,” he said of auction-rate bonds. Twenty-one states face budget deficits in fiscal 2009, including 16 that are short at least a combined $30 bln, according to the Washington-based Center on Budget and Policy Priorities.
07:23 OSIP OSI Pharm upgraded to Outperform from Market Perform at Wachovia (35.95 )

07:22 BWS Brown Shoe: 4Q07 earnings preview; strong inventory and cash mgmt in a difficult environment - Susquehanna (14.68 )

07:22 AU Anglogold upgraded to Buy from Neutral at UBS (36.12 )

07:21 AMGN Amgen: Rodman & Renshaw says given past ODAC experience with ESAs, the panel will almost certainly vote to further revise the ESA labels and ask for more data (45.52 )

Rodman & Renshaw says that based on the potential outcomes of the ODAC panel for ESA use, they have modeled two scenarios, along with their effects on the Aranesp NPV: first, the potential loss of the breast cancer indication for Aranesp, and; second, the loss of the overall US oncology market. According to firm’s model, the current NPV of Aranesp is approx $13.5 bln, while contributing approx $12.50 to the current stock price. Without the U.S. breast cancer market, the NPV is reduced by approx $2 bln and the NPV per share is lowered by approx $2 from its current level. Without the U.S. oncology Market, the NPV is reduced by approx $9.6 bln and the NPV per share lowered by approx $9 from its current level. U.S. sales of Aranesp in oncology were $1.55 bln in 2007. Given past ODAC experience with ESAs, the panel will almost certainly vote to further revise the ESA labels and ask for more data, which alone should not impact demand significantly.
07:21 AAPL Apple tgt cut to $160 from $180 at BofA (125.02 )

07:20 HWAY Healthways: Broadpoint Capital reducing FY08 and FY09 ests; cut tgt to $42 (34.35 )

Broadpoint Capital is cutting their FY08 and FY09 ests to $1.50 and $2.10 from $1.79 and $2.50, respectively. Firm states that disease mgmt-related news flow has been anything but positive in recent weeks. First, the CMS cast doubt on the impact that participating vendors are having in Phase I of the Medicare Health Support pilot programs, further clouding the potential for a Phase II expansion. Then, they learned that BCBS/Minnesota is likely terminating its HWAY relationship and bringing DM in-house. Finally, HWAY sharply reduced its FY08 outlook due to enrollment challenges at one large health plan account and the loss of two health plan expansion prospects. Firm reduces tgt to $42.
07:20 Merriman says O.F.C. 2008 highlights dramatic contrast btw Wall Street gloom and upbeat industry fundamentals

Merriman says with share prices of many optical component industry participants now back below presector recovery levels, firm believes this year’s O.F.C. show last week in San Diego served to highlight the historically wide gap between market sentiment on the group as implied by share prices, and actual fundamentals in the industry. From indications of a nearterm pickup in business levels across the sector, to multiple forecasts of massive, video driven network bandwidth additions, to a vibrant ecosystem of private emerging vendors very much in evidence, it is clear to them that the optical networking sector is likely to see continued growth and increasing profitability over the next few years. CIEN, OPXT, FNSR and EMKR remain focus names within the sector, with notably strong showings last week, as well from ADCT and BKHM.
07:19 NRF Northstar Realty: Short-term defense for long-term offense - FBR (8.89 )

Friedman Billings says that while credit continues to be a factor in the market, NRF’s balance sheet is well defended with no marginable debt and a strong liquidity position. It is worth noting that the co’s recourse credit is not subject to mark-to-market covenants, as well. NRF continues to play defensively in the current environment by managing the balance sheet prudently and watching expenses of this internally managed REIT. Volatility in CRE securities continues to rule the day due to the lack of liquidity in the fixed-income markets, which firm believes will eventually create opportunities for those cos that can harbor capital and liquidity. Firm would be buyers on any dips over the next several months, as they believe that the long-term return potential for NRF shareholders is very attractive.
07:18 LLNW Limelight Networks: Loses patent infringement against AKAM - FBR (4.68 )

Friedman Billings says on Friday AKAM vs. LLNW jury trial came to an end with a favorable outcome for AKAM. The jury ruled that LLNW infringed on four claims of a content delivery patent asserted by AKAM and awarded AKAM $45.5 mln in damages. As a result, firm believes LLNW’s new customer additions and rev growth could slow, and existing customers may be more reluctant to renew their contracts. They expect LLNW to appeal the decision. Firm also expects AKAM to file a motion for injunction against LLNW, which they believe will be granted. Firm cuts their tgt from $7 to $5 to reflect the increased uncertainty surrounding the business.
07:13 Financial firms face $600 billion of losses, UBS says - Bloomberg.com

Bloomberg.com reported on Friday that UBS says financial firms will likely see their losses reach at least $600 bln as the crisis triggered by the collapse of subprime mortgages batters banks, brokers and insurers. Banks and brokers stand to lose $350 bln. Financial institutions have so far disclosed more than $181 bln of writedowns and credit losses. “We have to recognize the risk that the economy will suffer more damage than what consensus suggests. All the investment schemes that have been built on the basis of a strong and resilient economic backdrop have to be unwound/scaled down.” UBS expects Lehman Brothers (LEH), Morgan Stanley (MS) and Bear Stearns (BSC) to write down a total of about $5 bln in the first quarter. UBS analysts predict $11 bln of writedowns at Lehman, Goldman Sachs (GS), Merrill Lynch (MER), Bear Stearns and Citigroup (C).
07:12 STXS Stereotaxis misses by $0.03, reports revs in-line (5.77 )

Reports Q4 (Dec) loss of $0.34 per share, $0.03 worse than the First Call consensus of ($0.31); revenues fell 26.4% year/year to $10.3 mln vs the $10.3 mln consensus. Co said, “Given the very recent developments concerning the magnetic irrigated catheter, we aren’t yet in a position to provide formal guidance for 2008. However, assuming the magnetic irrigated catheter is available for full commercialization by mid-year, and we have reference sites during the second quarter, we can share with you our potential for the year, which represents our internal expectations. First, we believe we can set the stage for substantial revenue growth during 2008 by converting at least 50% of our beginning backlog of approximately $58.4 million to revenue during the year. In addition, we expect to generate a substantial improvement in new order generation vs. 2007, of which $5 to $10 million will be converted to revenue during the year.”
07:11 CEPH Cephalon upgraded to Buy from Neutral at Merrill (60.34 )

07:10 NPSP NPS Pharm: Hearing downgraded to sell from neutral at tier 1 firm (3.96 )

07:10 WIRES On The Wires

AirMedia Group (AMCN) announces that it has entered into a definitive agreement with China Eastern Media, a subsidiary of China Eastern Group and China Eastern Airlines that operates the media resources of China Eastern Group, to establish a joint venture… NATCO Group (NTG) announces that the company is unable to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2007 by the required filing date… Intl Game Tech (IGT) Asia announces the the launch of Asia’s first Star Wars progressive slot at the Almond Slot Club in Manila.
07:09 NOC Northrop Grumman: Additional color on Tanker contract award (78.61 )

As mentioned at 6:40, Oppenheimer upgraded NOC to Outperform from Perform and raised their tgt to $95 from $91 following the Pentagon’s selection of underdog NOC (teamed with EADS/Airbus) over Boeing (BA) for the newly designated KC-45A Aerial Refueling Tanker with a potential value of $35 bln. Firm believes the win should lift the Charlie Brown image (i.e., good company, but less consistent and can’t win the big awards) that investors seem to prescribe to NOC. They note BA may choose to protest the award, which could stretch resolution to late June, which has us refraining from updating estimates (win conservatively adds $0.05 to 2009, $0.20 to 2010, $0.40 to 2011 and $0.60 to 2012). Firm sees the initial contract, at a minimum, adding $3-to-$6 of value per share… Jefferies says that given that revenues related to the program could be in the $2.1 to $2.5 bln range in the 2011 to 2012 time period, the contract’s contribution to EPS could be on the order of $0.45. Discounting that back and allowing for a probability for a Boeing protest, they figure the shares could trade $2.50 to $4.25 higher in the near-term… Citigroup believes that NOC’s stock could potentially trade $4 higher on the positive tanker news, while BA should trade down approximately $2.
07:07 Dollar falls to 3-year low on speculation debt losses to spread - Bloomberg.com

Bloomberg.com reports the dollar declined to a three-year low against the yen on speculation banks will report more losses from the collapse of the U.S. subprime-mortgage market. The currency fell for a fifth day, dropping below 103 yen for the first time since January 2005, and was within 1 cent of its weakest ever against the euro as stocks dropped and the cost of protecting corporate debt from default rose to record highs.
07:02 AEM Agnico-Eagle Mines reports investment in Forum Uranium Corp. and concurrent option agreement (68.80 )

Agnico-Eagle Mines Limited reports that it had acquired 6,122,449 units of Forum Uranium Corp. by way of a private placement at a price of $0.49 per Unit for a total consideration of $3,000,000 in cash. Each Unit consisted of one common share, resulting in the acquisition of a total of 6,122,449 Common Shares of Forum by the Company, and one-half of one share purchase warrant, each full Warrant entitling the Offeror to acquire one Common Share at a price of $0.66 per share for a period of two years. Concurrent with this investment, Forum has optioned the right to earn a 51% interest in the uranium properties that Agnico acquired as part of the Cumberland Resources acquisition in 2007 by incurring a total of $3,000,000 of exploration expenditures on these properties over a four year period. Forum may also acquire a further 14% interest by completing a bankable feasibility study in relation to these properties within five years of earning its 51% joint venture interest.
07:01 QGLY Quigley announces sale of its health and wellness segment (5.30 )

Co announces that on February 29, 2008 it completed the sale of it wholly owned subsidiary, Darius International Inc. The terms of the agreement include a cash purchase price of $1 million by InnerLight Holdings, Inc. for the stock of Darius and its subsidiaries without guarantees, warranties or indemnifications. The unaudited net book value of Darius at December 31, 2007 and 2006 approximate $124,000 and $2.4 million, respectively. Darius’ net sales for 2007 and 2006 approximate $11.2 million and $15.3 million, respectively with a net loss for 2007 and 2006 approximating $600,000 and $1.2 million, respectively.
07:01 PPHM Peregrine Pharma announces publication in clinical cancer research confirms ability of Bavituximab to target tumor blood vessels with ‘excellent’ specificity (0.63 )

Co announces publication of a new preclinical study in Clinical Cancer Research that supports the specific tumor targeting properties of the company’s novel anti-phosphatidylserine antibody platform. The newly published study demonstrates that in a model of prostate cancer, bavituximab’s phosphatidylserine target is specifically exposed in tumors, but not in normal tissues. When labeled with a radioisotope, bavituximab preferentially targeted the tumor blood vessels, strongly localizing to the tumors rather than normal organs. It is the latest in a series of preclinical studies that have confirmed important elements of the mechanism of action of bavituximab.
07:01 NVMI Nova Measuring announces follow-on order from China’s largest foundry for its metrology solutions (2.49 )

Co announces a follow on NovaScan stand-alone order from the largest foundry in China as part of a multi million dollar deal to supply its stand alone metrology, integrated metrology and NovaMARS application development solutions.
07:00 NICE Nice Systems receives a multi-million dollar order for its IP-based digital video solution with content analytics surveillance for Victoryland Greyhound Racing Facility (32.26 )

Co announces that Victoryland has placed a multi-million dollar order to expand its NICE environment with NiceVision Net, NICE’s end-to-end solution for IP video security with content analytics. The NICE solution will be used to enhance monitoring and investigation capabilities at the facility while decreasing total security cost of ownership. The solution will be implemented together with NICE partner Sport View Technologies, a leading provider of electronic systems integration and solution packages to the Gaming industry.
07:00 GRMN Garmin to acquire distributors in Belgium and Finland (58.71 )

Co announced that it has signed letters of intent for the proposed acquisition of Formar Electronics N.V./ S.A., the distributor of Garmin’s consumer products in Belgium and Luxembourg, and NavCor Oy, the distributor of Garmin’s consumer products in Finland. The completion of each of these acquisitions is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions. The acquisitions are expected to be completed by May, 2008. Financial terms of the proposed transactions were not released.
06:59 MELI MercadoLibre upgraded to Outperform from Sector Perform at RBC (36.15 )

06:57 GILD Gilead Sciences announces $500 mln accelerated share repurchase (47.32 )

06:55 SWN SW Energy downgraded to Neutral at Suntrust- tgt $65 (65.23 )

SunTrust downgrades SWN to Neutral from Buy and raises their tgt to $65 from $64, based on valuation following Q407 EPS that exceeded firm and consensus estimates with raised FY08 EPS guidance.
06:55 TMA Thornburg Mortg’s counterparty rating lowered to ‘B-’ on higher margin calls (8.90 )

S&P lowered its counterparty rating to ‘B-’ from ‘B’ on Thornburg Mortgage. The outlook remains negative. “The rating action is based on Thornburg’s recent 10-K disclosure, which states that it is facing higher margin calls on its repo lines due to the distressed pricing of mortgage assets in the secondary markets.”
06:53 FMT Fremont General’s counterparty rating lowered to ‘CCC-’ on firm’s plan to defer payments (1.00 )

S&P lowered its counterparty rating to ‘CCC-’ from ‘CCC+’ on Fremont General . The rating remains on CreditWatch with negative implications. Additionally, S&P lowered its rating to ‘C’ from ‘CC’ on Fremont’s trust preferred securities. This action follows Fremont’s announced intentions to defer payments on its trust preferred securities. Once the payment is actually missed, the rating on that issue will be lowered to ‘D’.
06:50 CEDC Central European Dist announces a $310 mln convertible notes offering under a shelf registration statement (58.18 )

06:50 WCI WCI Communities issued downside guidance in addtion to delaying 10-K (3.89 )

Late last Friday, WCI delayed the filing of it 2007 10-K. The company also issued downside guidance for FY07 (Dec), sees FY07 (Dec) revs of $925-950 mln vs. $1.04 bln First Call consensus. Co also sees a loss from continuing operations before income taxes of approximately $650-$700 million.
06:48 WHR Whirlpool will be reaffirming its full-year 2008 outlook at the Raymond James Investors Conference (84.37 )

Note on 2/5, co issued in-line guidance for FY08, sees EPS of $8.50-9.00 vs. $8.57 First Call consensus.
06:47 TRY Triarc Co reports Q4 EPS from continuing ops of $0.32 vs ($0.02) in yr ago period; reports revs down 4% yr/yr to $320.6 mln with no estimates (8.68 )

06:46 CISG CNinsure signs exclusive distribution agreement with Ping An Life Insurance of China for co-branded product (12.70 )

Co announces the signing of an exclusive distribution agreement with Ping An Life Insurance Company of China, marking the debut of the first product custom designed by Ping An Life for CNinsure. Under the terms of this agreement, a co-branded accident insurance product will now be available exclusively from CNinsure.
06:44 Nikkei tumbles 4%, rising yen pounds exporters; Sensex ends down 901 pts

Japanese stocks fell 4% on Monday, with the Nikkei hitting a nearly six-week closing low as Honda Motor and other exporters were battered by a strong yen amid growing U.S. recession worries. Shares of Japanese consumer lender Takefuji sank 6.6% to 2,490 yen after it said it may post a loss of up to 30 billion yen on a structured finance transaction hit by the global credit crisis. The benchmark Nikkei shed 610.84 points, or 4.5%, to end at 12,992.18, its lowest close since Jan. 23. The broader TOPIX ended down 53.13 points or 4% at 1,271.15, also its lowest close since Jan. 23. Hong Kong stocks fell on Monday, tracking losses in overseas equities on concern over U.S. economic weakness, while investors looked ahead to a spate of major corporate earnings due this week. The benchmark Hang Seng Index ended down 3.07% at 23,584.97. The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, finished down 3.53% at 13,439.92… The Sensex opened with a huge negative gap of 351 points at 17,228 on weak cues from the global markets. Selling gained momentum after the benchmark index slipped below the 17,000-mark. The index tumbled to a low of 16,635 towards the end of the trading session. India’s Sensex finally settled with a loss of 901 points (5.1%) at 16,678 - the second-biggest single-day loss in absolute terms in history. (Reuters, Business Standard)
06:43 Europe shares fall on economy worries; HSBC gains

European shares slid 1.6% early on Monday, tracking falls in global equity markets as banks and commodity stocks slumped over worries about financial sector writedowns and a looming U.S. recession. But Europe’s biggest bank, HSBC rose as much as 1.9% after posting a rise in group pretax profit as strong gains in Asia helped it absorb a $17.2 billion hit for bad debts due to U.S. housing market problems. It pared gains later but was still up 0.3%. At 0906 GMT, the FTSEurofirst 300 index was down 1.55% at 1,294.92 points. London’s FTSE is currently off 1.9%, France’s CAC is lower by 1.6% and Germany’s DAX is down by 2%. (Reuters)
06:41 EPAY Bottomline Tech to acquire Optio Software (12.84 )

Co announces it has entered into an agreement to acquire Optio Software (OPTO.OB). The proposed transaction, which has been approved by the Board of Directors of both companies, is subject to Optio Software shareholder approval and other standard closing conditions. The agreement, valued at $44.9 mln, is expected to close during Bottomline’s fiscal fourth quarter and be accretive to fiscal 2009 earnings.
06:40 CALLS Early Research Calls II

Upgrades: J.P Morgan upgrades Seagate (STX 21.57) to Overweight from Neutral… Morgan Stanley upgrades Dean Foods (DF 21.52) to Overweight from Equal Weight… Oppenheimer upgrades Northrop Grumman (NOC 78.61) to Outperform from Perform and sets a $95 tgt following the Pentagon’s selection of underdog NOC (teamed with EADS/Airbus) over Boeing for the newly designated KC-45A Aerial Refueling Tanker with a potential value of $35 bln. The firm says the win should lift the “Charlie Brown” image, good company, but less consistent and can’t win the big awards, that investors seem to prescribe to NOC… Jefferies upgrades Exelon (EXC 74.85) to Buy from Hold and raises their tgt to $90 from $86 based on valuation… Jefferies upgrades Entergy (ETR 102.74) to Buy from Hold with a $116 tgt based on valuation. J.P Morgan upgrades Prudential (PUK 24.1 to Neutral from Underweight… Downgrades: J.P Morgan downgrades Western Digital (WDC 30.87) to Underweight from Neutral. Miscellaneous: Deutsche Bank initiates Cleveland Cliffs (CLF 119.45) with a Buy and a $135 tgt… Merrill assumes coverage of Allied Capital (ALD 22.59) with a Neutral.
06:38 PCAP Patriot Capital Funding reports Q4 net investment income of $0.32 vs $0.31 First Call consensus; (10.46 )

06:34 WIRES On The Wires

Neurobiological Technologies (NTII) and the Buck Institute for Age Research announce they have entered into a collaboration and exclusive license agreement to develop a novel therapy for Alzheimer’s Disease. Under the terms of the agreement Neurobiological Technologies will exclusively license certain patent rights related to a naturally occurring protein that has been shown in animals to reverse the symptoms of Alzheimer’s disease… Adept Technology (ADEP) and Prosurgics announces an agreement to collaborate on the design and development of the next generation of Prosurgics’ surgical robotic systems for image-guided and navigated neurological and soft tissue surgery.
06:33 NUVA NuVasive announces a $200 mln convertible notes offering; intends to use the net proceeds from the offering for general corporate purposes, including potential strategic acquisitions (38.54 )

06:29 CALLS Early Research Calls I

Upgrades: Lehman upgrades DeVry (DV 43.94) to Overweight from Equal-weight and maintains their $58 tgt, as they expect DV to maintain high single-digit cost cuts and strong enrollment growth creating strong margin expansion, with significant upside left and believe concerns over incremental 2H08 spend are overblown as management is wisely reinvestng some of the upside to expand high demand programs to drive strong enrollment growth in FY09 and beyond…UBS upgrades Expeditors International of Washington (EXPD 39.32) to Buy rom Neutral… Bear Stearns upgrades Darden (DRI 30.83) to Outperform from Peer Perform… JP Morgan upgrades Kohl’s (KSS 44.44) to Overweight from Neutral… Morgan Stanley upgrades Iowa Telecommunications (IWA 15.83) to Equal-weight from Underweight. Downgrades: Oppenheimer downgrades Omnicare (OCR 20.9 to Perform from Outp