Trading for the Masses

08:29 URBN Urban Outfitters: Q4 earnings preview - Stifel (29.15 )

Stifel says URBN will report Q4 results on Thursday, March 6. Firm ests 4Q07 EPS est of $0.31 ($0.02 above consensus), a 44% increase over LY’s EPS of $0.21 which benefited from a $4.1 mln tax adjustment for work performed on the co’s new offices. Excluding the adjustment 4Q06 EPS would have been $0.19, and 4Q07 EPS growth would be 61%. Firm believes lower markdowns will fuel gross margin improvement of 160 bps to reach 38.3%, vs. depressed gross margin results LY caused by high markdowns rates used to clear unappealing merchandise assortments especially at the Urban division. Firm expects operating costs as a percentage of sales to leverage 145 bps to 21.9% driven by leverage on an 11% comp and significantly lower construction costs per square foot (down approx 20%) on 15 new stores this year vs. 10 LY.
08:28 CLWR Clearwire reports Q4 (Dec) results, misses on revs; guides FY08 revs below consensus (14.50 )

Reports Q4 (Dec) loss of $4.58 per share, may not be comparable to the First Call consensus of ($1.01); revenues rose 91.2% year/year to $45.4 mln vs the $46 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $205-215 mln vs. $270.82 mln consensus.
08:26 SCANX Gapping up

In reaction to strong earnings/guidance: QSC +19.9% (approves 7 mln share buyback), , BITS +14.9%, SNTS +12.9%, TSL +9.2%, SUPG +8.6%, OVEN +7.6%, FNSR +5.3%, PRFT +5.0%, BEXP +4.9%, FLML +4.4%, MNKD +2.7%, IPCS +1.4%… Select gold stocks showing strength on higher spot prices: GFI +2.1%, AAUK +1.5%, AU +1.1%, AUY +1.0% (Cramer makes positive comments on MadMoney)… Other news: CHRD +14.2% (announces $25 mln stock repurchase authorization), BRL +10.6% (announces favorable ruling in Yasmin patent challenge), SGMS +6.5% (still checking), RAME +4.9% (says full year reserve replacement rate of 1500% with drilling and acquisition cost of $15 per boe), GCO +3.6% (announces agreement for termination of merger agreement and settlement of all litigation), FRPT +2.2% (announces the appointment of Michael Moody as Chief Executive Officer, President, and Chairman), ESI +1.8% (Blum Capital discloses 8.4% stake in SC 13D filing), CPLA +1.6% (announces authorization of the repurchase of up to $50 mln of the co’s common shares), AEM +1.5% (Cramer makes positive comments on MadMoney), JASO +1.4% and LDK +1.2% (up in sympathy with TSL)… Analyst upgrades: LLNW + 6.1% (upgraded to Hold at Jefferies), SKS + 4.5% (upgraded to Peer Perform from Underperform at Bear Stearns), ETN + 3.8% (hearing upgraded to Buy at tier 1 firm and added to Conviction Buy List), ASIA + 2.9% (initiated with Buy at Kaufman), CAVM +2.9% (upgraded to Overweight at Thomas Weisel).
08:25 C Citigroup: CNBC commentator says as much as 10% of Citi’s workforce could be cut over the next year (23.09 ) -Update-

08:23 BCS Barclays ‘questioned over terrorist blacklist’ - Daily Telegraph (37.05 )

Daily Telegraph reports the bank is being investigated by the US govt over possible breaches of rules banning banks from doing business with states on a terrorist blacklist. The bank said it had been contacted by the DoJ and the New York district attorney with questions about payments made in dollars through its New York branch. The payments may have been made by people or cos from states which are on the US blacklist of nations it believes sponsor terrorism. That list includes Cuba, Iran, North Korea, Sudan and Syria.
08:20 SNY Sanofi-Aventis evaluating legal options on German court ruling - DJ (37.48 )

DJ reports the co said it is evaluating its legal options after a court ruled that German health insurers won’t be allowed to reimburse prescriptions for its obesity pill Acomplia. “We are evaluating our legal options,” a spokesman for Sanofi-Aventis told DJ. “We are convinced about the quality of our products,” he added, declining to comment further.
08:19 CAL Continental Air pays Heathrow slot record - FT (23.60 )

FT reports the co has paid a record $209 mln for four pairs of take off and landing slots at London Heathrow airport. The airline disclosed the price paid for its entry ticket to Heathrow in a filing to the SEC and said it was seeking more slots at the airport. The price of the lucrative slots at Heathrow, the most congested airport in Europe, has more than doubled in the past two years, partly in response to a surge in demand from US airlines seeking to exploit the US/European Union “open skies” treaty, which comes into force at the end of this month to liberalise transatlantic aviation. From the end of this month any European or US carrier will be able to fly from any point in the US to any point in the EU… Continental Airlines said in its filing to the SEC that it had paid $116 mln for summer season slots at Heathrow and would pay a further $93 mln this year for slots in the next winter season. The US carrier is launching twice daily services between Heathrow and its New York Newark and Houston hubs.
08:16 CFC Countrywide: NY Times discusses what the FRE/FNM deal means (6.17 )

NY Times reports responding to criticism that home appraisers had inflated prices in recent years, FNM and FRE said Monday that they would buy mortgages only from lenders that use independent appraisers. The shift, part of an agreement with the attorney general of New York, is expected to force large lenders like CFCto sell or spin off their appraisal businesses. The changes will also create a watchdog to monitor the appraisal business… Under the new rules, lenders who want to sell loans to Fannie Mae or Freddie Mac will not be allowed to use in-house appraisers to do the first evaluation on a home. They will also be forbidden from using appraisals by a subsidiary or an affiliated co. Mortgage brokers and real estate agents involved will also be prevented from picking appraisers. For a co like Countrywide, that would mean it would no longer be able to use its LandSafe subsidiary to do appraisals for its home loan business if it wanted to sell loans to Fannie Mae or Freddie Mac. Title cos like FAF would also have to divest their appraisal divisions if they wanted to continue working for lenders that sold loans to the mortgage agencies.
08:16 VMW VMware: Mid-quarter channel update indicates demand environment remains healthy- Lehman (55.81 )

Lehman says recent checks in the VMW and virtualization food chain indicate that the demand environment remains healthy though there are pockets of weakness which bear watching as firm moves through Q1. Firm says the primary virtualization demand drivers remain server consolidation, disaster recovery, high availability, development/testing and virtual desktops. Firm says majority checks point to license growth of 25%-100% in 2008, driven primarily by server virtualization. Desktop virtualization, while promising, remains a nascent technology that they expect to ramp in 2-3 years.
08:16 SJM J.M. Smucker announces agreement to acquire Europe’s Best Frozen Fruits and Vegetable; expected to be slightly accretive to earnings (52.26 )

Co announces that it has entered into an agreement, through a subsidiary, to acquire Europe’s Best, a privately owned company headquartered in Montreal, Quebec. For fiscal 2009, the acquired business is expected to add approximately $70 mln in net sales and be slightly accretive to earnings.
08:15 NSM National Semi: Caris expects in-line results on a lower bar (16.55 )

Caris reiterates their Above Average rating and $23 tgt ahead of NSM’s F3Q08 earnings report on Thursday, March 6. Firm likes NSM more than most other analog names as they see more leverage in the model here than elsewhere, but they’re not likely to see evidence of that leverage until the semiconductor cycle bottoms. In the meantime, it’s clear there is more near term risk to the group as a whole. Firm models rev/pro-forma EPS of $453 mln/$0.24 vs. consensus of $459 mln/$0.24 and mgmt’s guidance for rev of $450 mln — $455 mln. Firm expects guidance to be up slightly off the down quarter, inline with normal seasonality of +3% (consensus also expects +3% Q/Q, but off a slightly higher base).
08:14 GM General Motors CEO says ‘inventories are fairly high’ - WSJ (23.20 ) -Update-

08:13 ADM Archer-Daniels: Ethanol giant holding fast, underscores uncertainty in ethanol industry- Chicagotribune.com (45.74 )

Chicagotribune.com reports that back in Nov, with ethanol supply outstripping demand and its price falling, an analyst asked ADM if it was on the lookout for failing competitors’ plants it could buy up cheap. “We’re actively engaged in this market all the time, and we know where every plant location is,” Woertz (CEO) said. ADM is still waiting - a decision experts say underscores the uncertainty of an industry struggling with a supply glut and a decision by the government to cap just how much it will contribute to ethanol producers who make their product from corn. “It was tough a couple of years ago to not make money producing ethanol; now it’s a lot easier to not make money,” said Pat Westhoff, an agricultural economist at the University of Missouri. “We expect there to be a lot of volatility in returns to ethanol producers over the next 10 years.” Both ADM and Cargill, unlike almost all their competitors, are diversified enough to wait out the uncertain market. ADM can produce nearly 1.1 bln of the roughly 6.5 bln gallons the country currently produces, more than any other company, according to Renewable Fuels Association industry group. But ADM counts on ethanol for only about one-tenth of its total sales. ADM doesn’t have to buy plants or act in any other way to improve the health of the industry. “I don’t think so, unless they are really, really cheap,” Morningstar analyst Ann Gilpin said. “Quite frankly, if you have some smaller guys go out of business that would solve some of the problems.”
08:12 INTC Intel: Fundamentally sound, but not for new money yet - Caris (20.01 ) -Update-

Caris views INTC as a core holding for long-term investors, with a stronger competitive position and more leverage in the core business than it has seen in several years. That said, it’s difficult for firm to recommend that new money jump in here as PC growth slows — they don’t think they’ve seen the last round of consensus est cuts. Strategically, continuing participation in NAND flash would also be a significant negative to the stock. Firm maintains their Above Average rating/$24 tgt, but they’d wait for the stock to approach $17 and/or CY08 consensus to approach their $1.20 (from $1.23 before the pre-announcement, vs. Street at $1.40) before adding to positions.
08:10 BMO Bank of Montreal reports cash EPS of $1.21 vs $1.36 First Call consensus (2 estimates) (48.91 ) -Update-

08:10 EOG EOG Resources downgrade details (122.17 )

As mentioned earlier, Oppenheimer downgraded EOG to Underperform from Mkt Perform on valuation. Firm thinks the 20% surge in the price on Thursday, the day of the analyst meeting, was unjustified by even the most optimistic expectations. EOG uses the 6:1 oil-to-gas ratio in its presentations, which firm says could be somewhat misleading since gas prices have historically traded at a large discount to oil. Although firm thinks both oil and gas prices are inflated, they expect the drop in gas prices to be steeper than oil in the next six months because of the weather.
08:09 BRL Barr Pharma: Meaningful Yasmin patent win; represents the largest potential EPS upside contributor - Lehman (45.67 )

Lehman believes BRL’s Yasmin patent win represents the largest potential EPS upside contributor of all BRL’s near-term litigation cases. Should BRL launch, firm ests approx $0.23 in EPS, just for the 180-day exclusive period. However, with apparently no other generic filers, generic Yasmin could be a respectable contributor for an extended time period. In addition, firm sees potential lateral on Bayer’s Yaz, given identical patent as Yasmin. Assuming a Barr approval and no litigation, launch could occur with end of 3-yr Hatch-Waxman exclusivity in Mar ‘09 — potential contribution of $0.17/share for 180-day exclusive period.
08:09 WIRES On The Wires

Comtech Telecommunications (CMTL) announced that its New York-based subsidiary, Comtech PST Corp., has received a follow-on contract award valued at $2.4 mln for solid state high power RF amplifiers from a major domestic medical instrumentation provider… Sirtris Pharmaceuticals (SIRT) announces that Kenneth Shindler will present preclinical data at the North American Neuro-Ophthalmology Society annual meeting showing that SRT501, when orally administered, slows retinal ganglion cell loss during optic neuritis, a neurodegenerative eye disorder, and suppresses neurological dysfunction in a preclinical model of Multiple Sclerosis…. VIVUS (VVUS) announces that it has completed enrollment in the EQUATE study… Pluristem Therapeutics (PSTI) announces that it has filed a Pre-Investigational New Drug application with the Paul Ehrlich Institute in Germany for PLX-PAD, the co’s product for the treatment of Peripheral Artery Disease… I.P.C. Media, a UK consumer magazine publisher, has selected the Interwoven (IWOV) Multivariable Optimization solution, powered by Interwoven Optimost, to increase visitor conversion rates on its magazine portfolio subscription site.
08:07 BCRX BioCryst Pharm reports Q4 results (3.82 )

Reports Q4 (Dec) loss of $0.06 per share vs the First Call consensus of ($0.39); revenues rose 1249.3% year/year to $28.2 mln vs the $14.8 mln consensus. The increase in revenues is due to revenue from the contract with the U.S. Department of Health and Human Services for the development of peramivir, a $7.0 mln milestone payment received from Shionogi & Co., Ltd., and the continuing amortization of deferred revenue from our collaborative agreements.
08:07 AMD Advanced Micro: Lehman believes 1Q08 may remain back end loaded (6.76 )

Lehman says following recent checks and discussions with mgmt including COO Dirk Meyer, firm updates their outlook on MPU challenger AMD. As per recent CFO meetings, near-term, they continue to believe 1Q08 may remain back end loaded with March trends key and 2Q08 visibility limited. Looking ahead new products may support positioning with execution on asset light strategy key for 1H08. Firm believes 1Q08 remains back end loaded. Their estimates remain -8% at $1.6 bln, -$0.34. Firm believes customers wary of macro (CNY impacted by snowstorms etc.) but no major revisions as yet.
08:07 BLT Blount Intl misses by $0.03, beats on revs; guides FY08 revs above consensus (12.18 )

Reports Q4 (Dec) earnings of $0.21 per share, excluding non-recurring items, $0.03 worse than the First Call consensus of $0.24; revenues rose 7.4% year/year to $131.8 mln vs the $129.9 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of $530-540 mln vs. $524.00 mln consensus.
08:06 Auto and Auto Parts: No respite in industry pressures - Lehman

Lehman says U.S. light vehicle sales continued at a weak pace in Feb, with a SAAR of just under 15.4 mln units, in line with our published expectations, but down sharply from last February’s 16.6 mln SAAR units and lower than the 15.9 mln average sales rate of the past three months. While some of the overall decline was due to large cuts to rental sales by Ford and Chrysler, retail sales fell sharply as well for most manufacturers. February sales of full-size pickups confirmed that the pricing environment is going to be extremely tough for the category. Firm says their negative outlook for vehicle sales centers around credit. Firm believes that even modestly rising delinquencies in auto lending will lead to tightened credit standards that will freeze out some buyers.
08:06 Banks ‘may be forced to hold more capital for crisis cushion’ - Times of London

Times of London reports commercial banks around the world may be forced to hold larger amounts of high-quality capital and liquid funds to act as a cushion in times of financial crisis, one of the Bank of England’s most senior officials suggested yesterday. Paul Tucker, the executive director for mkts, also conceded that the experience of the present credit mkt turmoil meant that it and other central banks might have to overhaul the way in which emergency funds are provided to the banking system during periods of financial stress.
08:05 CKR CKE Restaurants reports first period ‘09 blended same store sales of +1.5% (11.20 )

08:05 Semiconductors: Virtualization; investigating the impact - Lehman

Lehman has a report that looks at the impact that virtualization technology may have on the TAM for servers and desktops and examine the implications for microprocessor vendors INTC and AMD and select software plays. In general, firm concludes that while virtualization’s effect on the server market has been profound, its traction in the desktop market may remain subdued until at least 2011-12, with the ongoing shift to notebooks further limiting the impact to total client MPU units. Firm, therefore, modeles a relatively muted impact for virtualization for INTC and AMD’s client business in 2008 to 2010. Firm’s ests are lowered on INTC to reflect this near term trend. For CY08 their reve/ EPS ests move from $39.1 bln/ $1.29 to $38.5 bln/ $1.16 with March at $9.5 bln/ $0.27 from $9.6 bln/ $0.30
08:04 Consumer bankruptcies leap in February - Reuters.com

Reuters.com reports American consumers’ bankruptcy filings jumped 15% in February from the previous month and a steeper rise is looming because of the subprime mortgage crisis, the American Bankruptcy Institute said on Monday. Consumer bankruptcy filings in February totaled 76,120, up from 66,050 recorded in January, the non-partisan bankruptcy research group said. The February number was 37% higher than in the same month a year ago, according to the institute.
08:04 PRFT Perficient beats by $0.01, reports revs in-line; guides for Q1 (7.86 )

Reports Q4 (Dec) earnings of $0.22 per share, ex items, $0.01 better than the First Call consensus of $0.21; revenues rose 26.1% year/year to $62.4 mln vs the $62.2 mln consensus. Co guides for Q1, sees Q1 revs of $54.8-58.9, may not comapre to the $61.31 mln consensus.
08:04 JRCC James River Coal misses by $0.40, misses on revs (16.97 )

Reports Q4 (Dec) loss of $1.04 per share, $0.40 worse than the First Call consensus of ($0.64); revenues fell 10.0% year/year to $124.7 mln vs the $130.1 mln consensus.
08:04 WAG Walgreen reports Feb same store sales +8.3% vs +6.2% Briefing.com consensus (36.45 )

08:04 ATML Atmel and PTEC announce the integration of ATMLl’s FingerChip biometric security solutions in PTEC’s FailSafe and SecureCore Pre-boot Authentication products (3.28 )

08:04 ASTT ASAT Holdings raises Q3 rev guidance (0.60 )

Co announced that it expects revenue for the third quarter of fiscal 2008, ended January 31, 2008, will be approximately $41.7 mln, representing an increase of approximately 4 percent above second quarter fiscal 2008 revenue of $40.2 mln. It is also above the guidance the Company provided on January 14, 2008 of revenue being inline with the prior quarter.
08:04 CLWR sees FY08 revs $205-215 mln vs $270.82 mln First Call consensus

08:03 CAH Cardinal Health agrees to acquire ChloraPrep manufacturer for $490 mln; reaffirms FY08 EPS guidance of $3.75-3.85 vs $3.80 consensus (59.12 )

The co announces a definitive agreement to acquire the assets of privately held Enturia for $490 mln. The cash transaction includes Enturia’s leading line of infection prevention products sold under the ChloraPrep(R) brand name and is expected to close within 60 days, subject to customary regulatory approvals and other conditions… The acquisition is expected to be slightly dilutive to Cardinal Health’s earnings for the remainder of fiscal year 2008 and accretive each year thereafter. The co’s outlook for non-GAAP diluted EPS from continuing operations(1) for fiscal 2008, including the impact of the acquisition, remains unchanged at $3.75 to $3.85. Consistent with Cardinal Health’s approach to acquisitions, Enturia is expected to generate positive economic profit and returns above its cost of capital within the third fiscal year after the purchase… Separately, and as part of the company’s ongoing strategy to opti portfolio of products and services, Cardinal Health has decided to pursue the sale of several smaller, non-core offerings within its Medical Products and Technologies segment. Details will be announced as there are significant developments in these transactions.
08:03 CAVM Cavium Networks upgraded to Overweight from Market Weight at Thomas Weisel (15.06 )

08:02 CLWR prelim ($4.5 vs ($1.01) First Call consensus; revs $45.4 mln vs $46.02 mln First Call consensus

08:02 JRCC prelim ($1.04) vs ($0.64) First Call consensus; revs $124.7 mln vs $130.05 mln First Call consensus

08:02 CAH Cardinal Health reaffirms FY08 EPS guidance of $3.75-$3.85 vs First Call consensus of $3.80 (59.12 )

08:02 BCRX prelim ($0.06) vs ($0.39) First Call consensus; revs $28.20 mln vs $14.76 mln First Call consensus

08:02 CASS Cass Commercial promotes Eric Brunngraber to CEO succeeding Lawrence Collett, who announced his retirement as CEO (27.83 )

08:02 IDRA Idera Pharma reports Q4 EPS of ($0.21) vs ($0.19) consensus; reports revs up 277% yr/yr to $2.2 mln vs $2.0 mln consensus (9.82 )

08:00 PRFT prelim $0.22, ex items vs $0.21 First Call consensus; revs $62.4 mln vs $62.17 mln First Call consensus

07:59 GLUU Glu Mobile: Merriman believes a potential acquisition target (4.50 )

Merriman says given ERTS proposed $2 bln acquisition of TTWO last week (valuing TTWO at 1.5x next FY revs and 19x EPS), they believe GLUU remains an acquisition target for other large publishers that need to enhance its mobile offering (examples being ATVI, THQI). While firm expects mgmt to focus on integrating recent acquisitions and rollout new titles during 1H08, longer-term, they believe that a potential valuation driver could be M&A. Utilizing the multiples for the proposed acquisition of TTWO, GLUU would be valued in the 7-$10 per share range.
07:59 S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -9.8.

Pessimistic comments from Intel (INTC) are weighing on futures. The company sees gross margins compressing as a result of lower NAND memory chip prices. No major economic reports are due today.
07:58 INTC Intel: Color on 1Q08 preannouncement (20.01 )

Lehman says INTC, post close, lowered GM guidance for 1Q08 to reflect weaker NAND pricing. All other rev and expense guidance for 1Q08 was left unchanged at present. Firm’s ests are lowered and they would expect shares to remain in $18-19 range given potential for incremental PC demand issues to impact rev later in back end loaded 1Q08 and seasonally subdued 2Q08… Calyon notes INTC lowered its Q1 gross margin guidance from 56% to 54%, citing lower-than-expected prices for NAND flash memory chips. The co said that all other expectations remained unchanged from its previous guidance. NAND prices have declined sharply in recent months, falling over 50% since the recent peak in Nov 2007, putting downward pressure on NAND margins. On the other hand, DRAM prices have already fallen significantly in 2007 (down 85%) and are now at below cash cost for some DRAM makers. As a result, DRAM prices have shown some stability in recent months. INTC and MU operate a joint venture called IMFT, which produces 50nm NAND flash. For MU, the co still generates the majority of its sales from DRAM, and in 2007, MU’s DRAM/NAND sales mix was 74%/26%… Jefferies believes that INTC remains well positioned to gain market share on the back of its superior products and manufacturing prowess. The outlook for microprocessor and PC sales remains robust for 2008 driven by emerging markets trends. Firm cuts their tgt to $30 from $31.
07:57 TMA Thornburg Mortg downgraded to Underperform from Sector Perform at RBC (4.32 ) -Update-

07:57 AGO Assured Guaranty CEO appears on CNBC, says new business production is at an all time high. Believes they will be reporting record quarters throughout the year (26.29 )

07:56 GDP Goodrich Petroleum downgraded to Market Perform from Outperform at BMO Capital (24.92 )

07:55 MDTH Medcath upgraded to Strong Buy from Outperform at Raymond James (19.77 )

07:55 DFR Deerfield Triarc Capital: tgt cut to $3.75 at Jefferies (3.24 )

Jeffries lowers their DFR tgt to $3.75 from $16 following disappointing 4Q07 results and 1Q08 asset sales. While they note the co is materially smaller and earnings power has been diminished, they view DFR as a survivor. They believe there is room for upside as credit markets normalize.
07:55 BZP BPZ Energy: Positive Corvina reserve report; increasing tgt to $24 - Broadpoint Capital (18.55 )

Broadpoint Capital says Netherland-Sewell’s 2/29/08 reserve report on the Corvina oil project exceeded their ests for year-end 2007 reserves/value, adjusting for the price deck and the 18XD test in one sand. Also, the 3P reserve est of 60 Mmbo confirms their confidence in their 53 Mmbo YE08 est, which also includes the important 20XD and 15D wells and the first Albacora test. The key takeaway from the reserve data is the significance of the Corvina reservoir drive, which is clearly an aquifer or water drive, and not depletion, causing the engineers to increase the recovery factor, which is 41% in the 3P reserves; we expect proved reserves’ recovery to be in the mid-30% range by year-end.
07:52 GCO Genesco announces agreement for termination of merger agreement and settlement of all litigation (24.77 )

Co announces that it has entered into a definitive agreement with The Finish Line (FINL)and UBS for the termination of the merger agreement with FINL and the settlement of all related litigation among FINL and GCO and UBS. The terms of the settlement agreement are as follows: 1)The merger agreement between GCO and FINL will be terminated; the financing commitment from UBS to FINL will be terminated; 2) UBS and FINL will pay to GCO an aggregate of $175 mln in cash along with a number of Class A shares of FINL common stock equal to 12.0% of the total post-issuance FINL outstanding shares of common stock; 3) The payment of the cash and shares required by the settlement is expected to occur on Friday, March 7, 2008; 4) It is currently anticipated that the Class A shares of FINL will be remitted to GCO’s shareholders as soon as reasonably practicable following the registration of such shares by FINL.
07:52 BMO Bank of Montreal fails to reach restructuring deal on 2 trusts - Globe and Mail (48.91 )

Globe and Mail reports the bank executives will likely face tough questions from investors Tuesday as the bank failed to reach a restructuring deal on two asset-backed commercial trusts it sponsors by the close of business Monday, leaving the trusts vulnerable to meltdown as early as Tuesday if creditors seize assets. Credit-rating agency DBRS placed the notes of Apex Trust and Sitka Trust, which are sponsored by BMO, “under review with negative implications,” as the bank’s negotiators continued talks with several banks that are counterparties to the trusts. In total, the trusts face more than $500 mln in potential collateral calls. One counterparty to Sitka is now allowed to seize collateral, while a counterparty to Apex will be in a similar position Tuesday as grace periods to make payments expire… Bank of Montreal holds its annual meeting in Quebec City Tuesday.
07:52 HNSN Hansen Medical: Sterotaxis’ limitations pave the way for HNSN’s long-term success - Merriman (17.60 )

Merriman says Stereotaxis announced yesterday that Biosense-Webster would be temporarily halting production of the magnetically driven version of the market-leading Thermocool ablation catheter. Firm believes the announcement is yet another setback to Stereotaxis, HNSN’s primary competitor, and illustrates the value of the open-architecture approach being pursued by HNSN. Firm believes the setback paves the way for HNSN to convert Stereotaxis’ backlog into HNSN’s customers.
07:49 DDR Dvlps Divers Realty upgraded to Hold from Sell at Citigroup (38.78 )

07:49 TSL Trina Solar beats by $0.13, beats on revs; guides Q1 revs in-line; FY08 revs above consensus (32.62 )

Reports Q4 (Dec) earnings of $0.62 per share, $0.13 better than the First Call consensus of $0.49; revenues rose 161.6% year/year to $101.4 mln vs the $95.6 mln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $112-120 mln vs. $115.86 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of $770-808 mln vs. $691.18 mln consensus. “The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.”
07:47 U.S. told to reconsider cuts to housing aid - NY Times

NY Times reports a federal court in Sacramento ruled that the Bush administration must reassess its plan to eliminate a down payment assistance program used by more than 100,000 low- and middle-income home buyers. Judge Lawrence Karlton held that the Department of Housing and Urban Development failed to comply with the Administrative Procedures Act requiring “a reasoned analysis” in trying to reverse a 10-year-old federal policy. The agency must review the rule it adopted in October, the judge said, and the head of the agency, Alphonso Jackson, must be excluded from the discussions… More than 100,000 consumers used the aid in 2006, and it accounted for a third of all FHA loans. The program lets nonprofit organizations, including the Nehemiah Corp of America and AmeriDream, finance down payments and be reimbursed by the sellers of the homes. The administration sought to ban the aid, contending the program leads to higher housing prices and a disproportionate number of foreclosures. Nehemiah, which is based in Sacramento, had accused Mr. Jackson of deciding to eliminate the program before considering public comments.
07:47 WIRES On The Wires

Jacobs Engineering (JEC) announces that it received a general engineering services contract from the Florida Department of Transportation to provide professional services support to the Office of the Chief Engineer for the development, operation, maintenance, and construction of the state highway system. Officials did not disclose the value of the 5-year contract… American Superconductor (AMSC) announces that it has received its first orders from the commercial marine market for its proprietary PowerModule-based electrical systems.
07:46 ACC American Campus Communities downgraded to Sell from Hold at Citigroup (26.52 )

07:45 OVEN TurboChef: Commercial business strong; rev guidance raised to high-end of range - Merriman (8.04 )

Merriman says OVEN reported Q4 rev of $34.3 mln (consensus $33.2 mln) and EPS loss of $0.14 (consensus called for $0.02). Firm says higher COGS resulted from material, component and freight prices. Options related expenses, residential marketing and some legal costs resulted in higher than expected SGA. For 2007, the co raised commercial rev guidance twice to $100-108 mln from the original projection of $75-85 mln. Total rev increased to $108.1 mln in 2007 from just $48.7 mln in 2006. At present, the balance sheet is strong with cash of $10 mln and no debt.
07:45 TSL sees FY08 revs $770-808 mln vs $691.18 mln First Call consensus

07:44 TSL sees Q1 revs $112-120 mln vs $115.86 mln First Call consensus

07:43 TSL prelim $0.62 vs $0.49 First Call consensus; revs $101.4 mln vs $95.59 mln First Call consensus

07:42 TRAD TradeStation reports metrics for month ended Feb 29, 2008; says had 103,453 DARTs (9.55 )

Co announces the following business metrics for the month ended February 29, 2008: 1) 103,453 Daily Average Revenue Trades; 2) total client assets of $1.7 bln (as of February 29, 2008); 3) average equities client credit balances of $595 mln; 4) average equities client margin balances of $85 mln.
07:40 TRAD TradeStation reports monthly business metrics; DARTs increase 51% y/y (9.55 )

Co reports, year over year, DARTs increased 51%, total client assets increased 5%, average equities client credit balances increased 13%, and average equities client margin balances increased 12%. As of Feb 29, total client assets were $1.7 bln.
07:39 JTX Jackson Hewitt reports Q3 (Jan) results, misses on revs; guides FY08 EPS below consensus, revs below consensus (20.29 )

Reports Q3 (Jan) earnings of $0.61 per share, vs First Call consensus of $0.99; revenues fell 14.7% year/year to $97.6 mln vs the $118.4 mln consensus. Co issues downside guidance for FY08, sees EPS of $1.48-1.60, excluding non-recurring items, vs. $2.08 consensus; sees FY08 revs of $282-292 mln vs. $310.44 mln consensus. “The widely reported slow start for the tax season industry resulted in customer traffic shifting from the third to the fourth fiscal quarter. The Company attributes the industry delay primarily to a general long-term shift in customer behavior to later filing. The Company believes that its tax return results in the early season were further affected by the lack of a pre- season product which drove customer demand to other tax preparation companies that were willing to electronically file tax returns with paystub information, as opposed to the legally required Form W-2. The Company also believes that continued references in the media to last year’s Department of Justice matter involving a former franchisee contributed to the decline.”
07:39 DIS Walt Disney: Hollywood Records is stripping EMI of its European distribution rights to The Jonas Brothers; giving the business to Universal Music Group - NY Post (32.41 )

NY Post reports the co’s Hollywood Records is stripping EMI of its European distribution rights to The Jonas Brothers and giving the business to Universal Music Group. The move could be a prelude to Disney ultimately shifting all of its intl business currently handled by EMI over to UMG, which already distributes the Mouse House’s music in the US. Some industry watchers have suggested that the Jonas Brothers will serve as a test case. Disney’s intl distribution pact with EMI expires in a year, and with EMI in flux, a source close to Disney said the co is keeping its options open in deciding whether to renew or go elsewhere. Disney and EMI sources emphatically deny that their relationship is on the rocks, or that Disney is looking for a new home.
07:39 SCANX Ealry pre-market gappers

Gapping up: QSC +13.5%, BRL +9.5%, SUPG +8.6%, OVEN +7.6%, SGMS +6.5%, BEXP +4.9%, FLML +4.4%, MNKD +2.7%, FRPT +2.2%, CHRD +2.1%, ESI +1.8%, AEM +1.7%, CPLA +1.6%, AUY +1.5%, IPCS +1.4%, GFI +1.3%, CHK +1.3%… Gapping down: OMPI -12.9%, NCS -10.8%, CCRN -9.1%, BKS -5.9%, PMI -5.8%, CETV -5.3%, SLXP -5.3%, TMA -5.1%, NOK -4.6%, HMIN -3.9%, ASML -3.2%, ERIC -2.7%, INTC -2.6%, SD -2.6%, HBC -2.4%, C -2.3%, UBS -2.3%, PBR -1.9%, AMD -1.6%, AAPL -1.3%, FNSR -1.3%.
07:38 BJS BJ Services tgt raised to $29 at Calyon (25.91 )

Calyon raises their tgt on BJS to $29 from $26. Firm believes that BJS’s earnings are expected to reach a bottom in 3Q08 and improvement in the N. American pressure pumping market is expected by the end of 2008. Firm believes that the Street will assign a higher valuation to the stock as it starts discounting the growth for 2009.
07:37 BB&T initiates WTS, MWA, ESE, and CCC with Holds

BB&T initiates Watts Water (WTS), Mueller Water (MWA), Esco Technologies (ESE), and Calgon Carbon (CCC) with Holds.
07:36 JTX sees FY08 $1.74-1.86 vs $2.08 First Call consensus; sees revs $282-292 mln vs $310.44 mln First Call consensus

07:36 RIG Transocean: New Nigerian law to have minimal impact on Noble and Transocean - Calyon (139.25 )

Calyon notes that Nigeria is attempting to classify rigs as vessels, qualifying them for taxation under the country’s regulations governing coastal shipping. They also note that Noble (NE) and Transocean (RIG) are the major offshore drillers in Nigeria. If enacted, they estimate that the new law will result in a $0.06/share decrease in RIG’s estimated earnings for 2008. Since RIG has a large, geographically diversified fleet, they believe that the $0.06/share reduction to the 2008 estimated EPS to $14.49 from $14.55 will not have any material impact on the stock price. Similarly, they estimate NE to have a mere $0.02/share potential negative impact on its 2008 estimated earnings. They believe that the new law, if enforced, will have minimal impact on the offshore drillers such as NE and RIG as the operations in Nigeria form only a small portion of the overall revs of these cos. They also believe that when the rigs in the region sign new contracts, the offshore drillers will be able to pass on part of the higher costs to the operators, thus further reducing the negative impact.
07:35 JTX prelim $0.61 vs $0.99 First Call consensus; revs $97.6 mln vs $118.35 mln First Call consensus

07:33 Some borrowers rescued - WSJ

WSJ reports mortgage cos have helped more than one mln cash-strapped borrowers stay in their homes since the summer, new industry data show. Even so, the number of homes subject to foreclosure is rising, and the percentage of borrowers who had good credit when they took out their loan and are now seeking help is growing. In a report released yesterday, the Hope Now Alliance, the group coordinating the mortgage industry’s response to the nation’s mounting wave of foreclosures, said its members helped work out 1.04 mln mortgage loans between July 1 and Jan. 31. The methods ranged from rescheduling borrowers’ payments to easing the terms of their loans. Most of those workouts — 73% — involved repayment plans that allow borrowers to catch up on missed payments or have those missed payments applied to the balance of their loan. About 27% were loan modifications, in which the original terms of the loan contract were changed, usually by reducing the interest rate, forgiving a portion of the principal or extending the maturity of the loan… But the report also highlighted some troubling trends. Borrowers who have “prime” mortgages, those made to individuals with good credit, accounted for 43% of those who were able to arrange a loan workout in January, up from 37% in the fourth quarter. The percentage of foreclosures that involved prime borrowers also increased — to 41% from 37%. And even with the industry’s efforts, more than 67,000 foreclosures occurred in January, up from an average of about 49,000 a month in the fourth quarter and 45,000 a month in the previous quarter.
07:32 CRMT America’s Car-Mart beats by $0.01, beats on revs (11.01 )

Reports Q3 (Jan) earnings of $0.28 per share, $0.01 better than the First Call consensus of $0.27; revenues rose 19.9% year/year to $71.1 mln vs the $67.2 mln consensus.
07:31 CRMT prelim $0.28 vs $0.27 First Call consensus; revs $71.13 mln vs $67.15 mln First Call consensus

07:31 CRDN Ceradyne announces a $100 mln stock repurchase program (30.13 )

07:30 CHINA CDC Software signs agreement to acquire controlling stake in ISL, a provider of ERP solutions in Southern China (3.64 )

CDC Software, a wholly owned subsidiary of CHINA and a provider of industry-specific enterprise software applications and business services, today announced it has signed an agreement to acquire a 51 percent stake in Integrated Solutions Limited, a Hong Kong-based vendor of ERP systems designed for small and medium-sized discrete manufacturers in China. The parties expect to complete the transaction by the end of March 2008.
07:30 SLXP Salix Pharm: Color on quarter (6.55 )

Thomas Weisel says SLXP reported 4Q07 revs of $71.9 mln vs. $62.6 mln in 4Q06, their est of $68.5 mln and the Street consensus est of $67.8 mln. The co reported 4Q07 diluted EPS of $0.32 vs. $0.29 in 4Q06, their est of $0.32, and the Street consensus est of $0.30. Aggressive generic pricing resulted in a $34.6 mln non-cash charge in the quarter due to projected decreased demand for the branded product. Mgmt stated that no further intangible carrying value for Colazal remains. Salix is offering patients rebates for co-pays if they stay on the branded product, with the expectation that patients will transfer over to balsalazide tablets after the product is approved. Firm nots pipeline includes three possible FDA approvals in FY08… Wachovia says SLXP mgmt has adjusted quickly to the reality of generic Colazal, but payoff is at least 2 yrs away, in our view. In the near-term, we are skeptical of the potential return on SG&A investments directed toward balsalazide tablets and Colazal Rx protection. Non-C IBS indication for rifaximin offers big potential (3+ yrs away), while HE indication may only deliver modest incremental Rx. Potential Para IV filing for Xifaxan (May 200 is an additional overhang. Firm provides a pipeline update: balsalazide tablets (5/16/2008 PDUFA), granulated mesalamine and metoclopramide-ZYDIS (Q4 2008E FDA action), rifaximin HE NDA submission (Q4 2008/Q1 2009E), rifaximin non-C IBS NDA submission (mid-2010).
07:30 STEM StemCells terminates its discussions to acquire Progenitor Cell Therapy (1.50 )

Co announces it is no longer pursuing a possible acquisition of Progenitor Cell Therapy, a provider of cGMP-quality cell processing services. The company had announced on December 3, 2007 that it was exploring such an acquisition and that P.C.T. had agreed to a period of exclusivity to allow for due diligence and negotiations. However, the parties were unable to reach agreement on mutually acceptable terms and conditions, and have terminated discussions. In consideration of the exclusivity period, STEM agreed to make a secured loan of up to $3.8 mln to P.C.T., of which $1.0 mln was lent. This loan will be repaid and retired on its terms.
07:29 FNSR Finisar: Color on quarter (1.52 )

Merriman views FNSR as one of a limited number of optical component suppliers with the breadth and scale to be both strategic to key customers such as Cisco (CSCO) as well as profitable even in lean times. Firm believes the lean times are coming to a close for FNSR, which offered commentary notably devoid of near-term economic concerns. With further growth expected in 10/40G transceivers and a rebound in Storage Networking after several soft quarters, they believe FNSR remains well-positioned to work earnings power back towards previous highs in the $0.04 plus per quarter range. Firm says revs for 1Q09 are expected to be $113-120 mln, or up 4$ QoQ, at the midpoint of the respective guidance ranges. Firm believes this outlook is reasonable given their expectations for continued strong growth in both communications network bandwidth and storage demand over the next year and FNSR’s solid to leading competitive position within these markets… Morgan Keegan says that While investors look to Cisco (CSCO) as a bellwether for FNSR’s fortunes, they may neglect to factor in demand from “non-traditional” datacom customers like GOOG, who some suggest may be picking up any slack in 10G optics demand as it builds out its own datacenters, constructs its own servers, and has recently cast its lot with a consortium building undersea networks. The surge in interest around server virtualization and its “load balancing” effect, which was once thought to require fewer optical interfaces and serve as a negative catalyst could instead drive demand for higher-speed LAN/SAN interfaces, with declines instead in legacy copper interfaces. Firm likes FNSR’s recent investment in, and plans to re-sell ROADM gear from privately held Nistica, which provides exposure to a high growth sector, yet firm doesn’t expect rev until CY09, and with “distribution margins” ROADM sales aren’t likely to move the earnings needle much… Thomas Weisel is raising their FY09 rev and pro forma EPS ests on expected contribution from a number of new product initiatives, while remaining cautious on the impact from a sluggish broader enterprise spending environment.
07:29 AAPL Apple well shy of movie rental goals - AppleInsider (121.73 )

AppleInsider reports while the co promised 1,000 movie rentals for the iTunes Store in January, an in-depth search reveals that only 384 movies are available — and that the rarer-still HD titles scarcely take full advantage of the format. The catalog represents just 39% of the official target set for the end of February and includes just 91 high-definition titles — 21 of which come from the 1980s and earlier, predating even basic surround sound and providing little actual benefit from the higher resolution or 5.1-channel surround sound that often come with Apple’s 720p videos.
07:27 XIN Xinyuan Real Estate reports Q4 revs +114% to $91.4 mln; EPADS $0.05, ex items vs $0.03 in yr ago period (11.65 )

07:26 SNE Sony, Samsung likely to spend $1.9 bln on LCD, source says - Reuters.com (46.70 )

Reuters.com reports Samsung Electronics and the co are likely to invest about $1.9 billion jointly in a new flat screen production line, a source at Samsung said. The comment is the latest in a series of announcements from panel makers and sellers, underlining the robust outlook for liquid crystal displays as demand for sleek, stylish and increasingly inexpensive television sets rises.
07:26 BBY Best Buy: Downgrade details (43.28 )

As mentioned at 6:32, BofA downgraded BBY to Neutral from Buy and cut their tgt to $41 from $47 as they believe many factors that drove BBY’s ‘07 out-performance will reverse in 2007. The firm believes lackluster demand will result in an oversupply situation in 2H08 that will pressure gross margins. Also they believe comps will stagnate in 1H08 as the consumer’s appetite for big ticket purchases will continue to wane in the face of a challenging macroeconomic backdrop.
07:25 HWCC Houston Wire & Cable downgraded to Hold from Buy at BB&T (14.82 )

07:23 PFE Pfizer’s liability case over Rezulin to proceed - WSJ (22.25 )

WSJ reports the U.S. Supreme Court yesterday deadlocked in a Michigan lawsuit against Pfizer’s Warner-Lambert unit, an outcome that allows a product-liability case over Rezulin to proceed. When oral arguments in the appeal were heard last week, the court appeared sharply divided over whether earlier Supreme Court precedent restricts lawsuits claiming injury from prescription drugs — unless a drug maker committed fraud to win approval from the FDA. The court was split 4-4, it announced in a brief order that didn’t identify how each justice voted. Chief Justice John Roberts Jr. recused himself from the case, presumably because he owns Pfizer stock, according to his most recent financial disclosure… The outcome in the Warner-Lambert case provides no new legal precedent. It is a blow for the co because a lower court ruling that revived the lawsuit now stands.
07:23 DCI Donaldson initiated with a Buy at BB&T (42.39 )

07:22 CLC CLARCOR initiated with a Buy at BB&T (35.86 )

07:21 BNS Scotiabank reports Q1 EPS of $0.82 vs $0.99 First Call consensus (2 estimates) (47.16 )

07:21 SKS Saks upgraded to Peer Perform from Underperform at Bear Stearns (15.07 )

07:21 ARRY Array Biopharma: Success trial for ARRY-797 in dental pain - Rodman & Renshaw (6.56 )

Rodman & Renshaw says ARRY announced that its Phase II trial of ARRY-797 in a dental pain study met both its primary and secondary endpoints. In this study no significant toxicities were noted and the drug met standard, clincial endpoints against placebo with robust p values. Firm believes this is positive news on several fronts. Broadly, it speaks to the co’s ability to create compounds that bind to their intended target with a high degree of specificity. They believe it also provides further validation of the co’s drug discovery platform, one that has produced InterMune’s (ITMN) ITMN-191 among others. More specifically, the positive findings could make for an impressive foray into the lucrative pain and inflammation market. Today’s data suggests an exciting first step into this large market; however, further proof of safety and efficacy will require significantly larger trials.
07:20 CMO Capstead Mortgage initiated with an Outperform at Bear Stearns (16.47 )

07:20 PICO PICO Holdings: 4Q07 results reported; weakness in housing market pressuring shares - Merriman (34.30 )

Merriman says PICO reported 4Q07 revs of $9.5 mln and diluted EPS of $0.08. Firm believes this Y/Y decrease in earnings on a quarterly and yearly basis is in no way indicative of a slowing of business, as they feel the primary focus should be on the co’s assets and their fair market value. Firm believes the overall slowdown in the housing sector has contributed to the dip in PICO’s share price, but long-term population trends, specifically in the southwestern U.S., remain accommodating to PICO’s water asset strategy. Firm believes the short-term woes of the housing market have overly devalued PICO’s plans for developing a supply for scarce water for regions projected to show sustainable growth.
07:20 MATR Matria Healthcare: 4Q07 results likely to affect eventual sale of company - Broadpoint Capital (23.99 )

Broadpoint Capital says on Monday, MATR issued its 2007 Form 10-K, revealing 4Q07 results that missed expectations on both the top and bottom lines. Rev came in at $88.5 mln vs. their est of $92.2 mln and mgmt’s guidance of $91.5-$93.0 mln. EPS came in at $0.24 vs. their $0.32 and mgmt’s guidance of $0.30-$0.34. The shortfall vs. guidance appears to be contained to one large health plan account that delayed implementation of additional programs in Q4. At the end of the day, firm does not expect MATR’s 4Q07 results to negatively impact the eventual sale of the co, as the bidders had access to this information.
07:19 HNZ HJ Heinz: Retracing the beef-supply trail - WSJ (43.87 )

WSJ reports as food makers scramble to comply with the nation’s largest beef recall, their system of data collection — which can trace the origin of the contents in its products down to the individual can — is being put to the test. HNZ discovered over the weekend that it has one product — Boston Market lasagna with meat sauce — that contained beef from Hallmark/Westland Meat Packing Co. Yesterday, Heinz recalled 40,000 cases of the product… CAG also recalled some products that were made during just a few days of production, including Slim Jim meat and cheese sticks, Pemmican beef jerky, Hunt’s spaghetti sauce with meat flavor, one Banquet macaroni & cheese meal, Manwich with beef in a refrigerated tub and a small quantity of food-service and private-label lasagna with beef… GIS had to recall one version of soup containing meatballs made, in part, from Hallmark/Westland beef.
07:19 DDS Dillard’s upgraded to Neutral at Credit Suisse- tgt $16 (14.79 )

Credit Suisse upgrades DDS to Neutral from Underperform and maintains their $16 tgt based solely on valuation. The firm says this is not a call on operating fundamentals bottoming, nor is it based on their expectations for 4Q07 earnings. Firm says DDS shares usually bottom at 50% of book value and 5.5 times forward one year EBITDA. This is where DDS currently trades.
07:19 IMCL Imclone: FBR makes changes to IMCL model based on 10-K guidance (44.71 )

Friedman Billings says IMCL filed its 10-K and issued additional guidance for 2008. Specifically, the co expects milestone revs between $100 mln and $110 mln for the year, and Erbitux sales are expected to show a steady increase but not accelerate until approvals in other indications come on line, which are not expected until mid-to-late 2009. Firm tweaked their milestone rev to in line with guidance, raising milestone revs to $105 mln (up from $83 mln) and their tax rate to 41% from 39%. Firm left their 16% Erbitux worldwide growth unchanged. Firm’s EPS est for this year goes to $1.60 (from $1.52).
07:19 GILD Gilead Sciences: Expert call on HIV points to Truvada upside; raising ests and tgt to $57 - FBR (48.57 )

Friedman Billings held a conf call with a leading expert in HIV to discuss the ACTG trial results just announced and the DAD data from CROI and their impact on GILD’s HIV franchise. The key takeaways from the call include: 1) the HHS guidelines, which recommend abacavir-containing regimens along with Truvada could change and push abacavir back down to an “alternate” treatment, leaving Truvada as the only preferred treatment in that category; 2) he thinks at least 10% of abacavir-containing regimens prescriptions could convert over to Truvada; and 3) incrementally more patients may move on to highly-active antiretroviral therapy earlier based on SMART results. All in all, firm raised their Truvada ests for 2008 and beyond in both the U.S. and Europe ( 2008 EPS est goes up by $0.05, with the out-years up between $0.09 and $0.13 each year). Firm raises tgt to $57 from $54.
07:18 AGIX AtheroGenics regains compliance with NASDAQ listing requirement (1.04 )

Co announces that the NASDAQ Listing Qualifications Panel has granted the co’s request for continued listing of its securities on The NASDAQ Global Market. The co filed its Form 10-K on March 3, 2008, evidencing that it satisfied a NASDAQ requirement to have more than $50 mln in revenue and $50 mln in total assets for the fiscal year ended Dec 31, 2007.
07:17 CHT Chunghwa Telecom upgraded to Outperform at Credit Suisse (24.51 )

Credit suisse upgrades CHT to Outperform from Neutral based on long term property catalysts, and imminent capital reductions. The firm also nots with the 9.5% cash yield, the total potential upside reaches 19.5%
07:17 Radiation Therapy: New player enters market - Oppenheimer

Oppenheimer says a new linear accelerator system from Mitsubishi Heavy Industries (MHI) has recently received approval in both the U.S. and Japan. The product has a helical approach to treatment similar to TOMO but seems specifically targeted towards the stereotactic radiosurgery market, as the treatment area is very small compared to other systems. While full scale production and marketing has just begun, firm’s sense is that the lack of any relationships in the field will preclude MHI from any kind of meaningful unit sales, particularly outside of Japan, any time soon. That said, the x-Japan cooperation with BrainLAB needs to be monitored and more info is needed as to how, if at all, this impacts VAR’s partnership with BrainLAB on Novalis TX. Firm expects the system to achieve few orders in Japan this year and U.S. orders next year.
07:15 EPL Energy Partners: Carlson Capital amends 13D filing, discloses 9.5% stake, up from 7.9% in 1/22 (11.27 )

Firm’s position was reported in a filing out earlier this morning.
07:13 ALY Allis-Chalmers Energy reports EPS in-line, misses on revs (12.40 )

Reports Q4 (Dec) earnings of $0.16 per share, in-line with the First Call consensus of $0.16; revenues rose 25.2% year/year to $143.8 mln vs the $146.2 mln consensus. “In 2008, we are expecting that the Gulf of Mexico and onshore drilling activity in the U.S. will not be materially different from current market conditions. We also expect to benefit from the delivery of new casing running tools in the first quarter and six new coil tubing units in the fourth quarter of 2008. We expect all of the new drilling and service rigs under contract in Argentina to be deployed by the third quarter of 2008. Finally, we anticipate that in 2008 our directional drilling segment should benefit from the addition of downhole motors, measurement-while-drilling (MWD) tools and increased presence in new markets.”
07:13 IP Intl Paper: Hearing upgraded to buy from neutral at tier 1 firm (31.80 )

07:13 PTR PetroChina may build refinery in Singapore, according to paper - Reuters (144.44 )

Reuters reports the co is considering building a world-scale refinery in Singapore worth blns of dollars, a local newspaper reported on Tuesday, citing unnamed sources. “It is currently doing a feasibility study and doing due diligence on this…and so far the feedback has been positive,” The Business Times quoted a source as saying. The newspaper cited another source who said the new refinery would be at least 400,000 to 500,000 barrels per day. “Given PetroChina’s business profile, it makes sense for them to have an oil refinery in a global pricing hub like Singapore,” the newspaper quoted the second source.
07:12 TEX Terex: Hearing downgraded to neutral from buy at tier 1 firm (67.84 )

07:12 ETN Eaton: Hearing upgraded to buy from neutral at tier 1 firm (82.11 )

07:11 BWA Borg Warner: Hearing downgraded to neutral from buy at tier 1 firm (42.80 )

07:09 WIRES On The Wires

Immunicon (IMMC) announces that on March 3, 2008, the arbitrator in the American Arbitration Association proceedings brought by Immunicon against Veridex issued a final decision determining that Veridex was not in breach of its “best efforts” marketing obligation and dismissing Immunicon’s claims in the Arbitration. The Arbitrator also awarded Veridex $304,013.00 in contract damages pursuant to Veridex’s counterclaim… Argo Group International (AGII) announces that its Trident Insurance Services unit has acquired Massamont Insurance Agency… AirMedia Group (AMCN) announces that it recently obtained the contractual concession rights to operate 140 digital TV screens and 130 46-inch digital frames at the newly constructed Terminal 2 of Wuhan Tianhe Airport from April 2008 to April 2011… Cell Therapeutics (CTIC) announces that it submitted a Marketing Authorization Application to the European Medicines Agency for XYOTAX for first-line treatment of patients with non-small cell lung cancer who have Eastern Cooperative Oncology Group performance status 2. The application is based on a positive opinion CTIC received from the EMEA’s Scientific Advice Working Party, which agreed to review the application based on the existing results of the phase III clinical trials of XYOTAX.
07:08 SPLS Staples reports EPS in-line, revs in-line; boosts annual dividend 14% (22.49 )

Reports Q4 (Jan) earnings of $0.47 per share, in-line with the First Call consensus of $0.47; revenues rose 8.3% year/year to $5.32 bln vs the $5.37 bln consensus. The company expects the weak economic climate to continue throughout 2008. Based on the cautious outlook, and continued investment in growth initiatives, the company now expects to achieve mid single-digit sales growth for 2008. The company expects to achieve high single-digit earnings per share growth for 2008, excluding the previously disclosed impact to 2007 earnings for the $38 million pre-tax charge ($24 million after-tax) related to the settlement of California wage and hour class action litigation. Co also announced an annual cash dividend of $0.33 per share of outstanding common stock, an increase of 14 percent over the prior year’s annual cash dividend.
07:06 TECD Tech Data beats by $0.08, reports revs in-line; guides Q1 revs in-line (33.16 )

Reports Q4 (Jan) earnings of $0.96 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.88; revenues rose 5.9% year/year to $6.48 bln vs the $6.44 bln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $5.65-5.80 bln vs. $5.71 bln consensus.
07:06 BIOS Bioscrip beats by $0.01, reports revs in-line (7.00 )

Reports Q4 (Dec) earnings of $0.06 per share, $0.01 better than the First Call consensus of $0.05; revenues rose 5.9% year/year to $309.2 mln vs the $308.9 mln consensus.
07:06 FINL Finish Line upgraded to Buy from Neutral at Merrill (3.97 )

07:05 MDF Metropolitan Health Networks reports Q4 EPS of $0.05 vs $0.01 single estimate; reports revs up 25% yr/yr to $69.9 mln vs $67.4 mln single estimate (2.40 )

07:04 Goldman, Morgan, Bear, Lehman estimates cut by Wachovia- Bloomberg

Wachovia analyst Sipkin lowers his Goldman Profit estimate 50%, Q1 will be an ugly quarter Wachovia reports. (G, MS, BSC, LEH)
07:02 MNKD Mannkind beats by $0.03 (6.57 )

Reports Q4 (Dec) loss of $0.75 per share, $0.03 better than the First Call consensus of ($0.78).
07:02 PSYS Psychiatric Solutions announces acquisition of five hospitals from United Medical; transaction expected to add $0.04 per diluted share in 2008; guidance increased to $1.97 - $2.01 (28.34 )

Co announces that it has acquired five inpatient psychiatric facilities. The facilities, located in Florida and Kentucky, are expected to generate revenue of approximately $68 mln in the next twelve months and include more than 300 acute beds and approximately 100 residential treatment center beds. The newly acquired hospitals are expected to add earnings of $0.04 per diluted share in 2008. As a result, PSI now expects 2008 earnings per share to be in the range of $1.97-$2.01 (not comparable to consensus of $1.95) and reiterates its expectation that first quarter 2008 earnings will be in the range of $0.42-$0.43 (vs $0.43 consensus). PSI funded the transaction with available cash and funding under its revolving credit facility.
07:01 TECD sees Q1 revs $5.65-5.80 Bln vs $5.71 bln First Call consensus

07:01 BIOS prelim $0.06 vs $0.05 First Call consensus; revs $309.2 mln vs $308.86 mln First Call consensus

07:01 TECD prelim $0.96 vs $0.88 First Call consensus; revs $6.48 bln vs $6.44 bln First Call consensus

07:01 CBRL CBRL Group reports February comparable same store sales +0.9%; co reports comparable store retail sales +1.2% (35.43 )

07:01 SPLS prelim $0.47 vs $0.47 First Call consensus; revs $5.32 bln vs $5.37 bln First Call consensus

07:00 ZZ Sealy provides update on its business trends in presentation for Raymond James Investors Conference (8.95 )

From today’s 8-k, co says “continued weakness in its domestic business is expected to offset ongoing strong international momentum, and the co anticipates that its net sales for the Q1 will result in a mid-to-high single digit decrease. Sealy’s domestic performance deteriorated as Q4 progressed. In the co’s Q1 of fiscal 2008, domestic sales in December and January continued to be challenged but were essentially in line with the co’s expectations. However, in February domestic sales results declined significantly, falling below the Company’s expectations. In addition, material costs continue to be under pressure due to rising commodity prices.”
07:00 CALLS Early Research Calls V

Upgrades: RBC upgrades Crosstex Energy LP (XTEX 32.45) to Sector Perform from Underperform. Miscellaneous: RBC initiates Capstead Mortgage (CMO 16.47) with an Outperform…. William Blair initiates Shutterfly (SFLY 15.19) with an Outperform.
06:57 Dollar falls against yen on bets fed will lower rate 0.75-point - Bloomberg.com

Bloomberg.com reports the dollar fell for a sixth day against the yen and traded near a record low versus the euro as traders increased bets that the Federal Reserve will lower interest rates by 0.75 percentage point this month. The dollar index, which compares the currency to those of six trading partners, fell as futures showed a 74% likelihood the Fed will reduce rates to 2.25%. Last week, traders saw no chance of a cut that steep. The Australian dollar declined as central bank as central bank Governor Glenn Stevens signaled interest rates may have peaked after today’s increase.
06:55 TMA Thornburg Mortg: Moody’s downgrades Thornburg to Caa2; ratings remain on review for possible downgrade (4.32 )

Moody’s downgraded to Caa2 from B2 and to Ca from Caa1 the senior unsecured debt and preferred stock ratings, respectively, of Thornburg Mortgage. The ratings remain under review for possible downgrade. “These rating actions reflect further substantial deterioration in Thornburg’s liquidity position due to increase in funding and valuation volatility for the REIT’s portfolio of non-conforming single family assets.” Between February 14 and February 27, 2008, received and met over $300 mln in margin calls on its reverse repurchase agreements which erased Thornburg’s liquidity cushion. The REIT has not been able to meet most of the $270 mln in additional margin calls on its reverse repurchase agreement borrowings received since February 27, 2008. The REIT is currently in default with one reverse repurchase agreement counterparty… Moody’s review of Thornburg’s ratings for possible downgrade reflects concerns regarding the REIT’s limited capacity to meet its current margin calls as well as any future margin calls which have heightened the potential that the REIT could default on its senior unsecured bonds.
06:54 STX Seagate Tech reaffirms Q3 guidance (21.82 )

Co reaffirms guidance for Q3 (Mar), sees EPS of $0.63-0.67 vs. $0.63 First Call consensus; sees Q3 (Mar) revs of $3.2-3.3 bln vs. $3.25 bln consensus.
06:52 CALLS Early Research Calls IV

Miscellaneous: JMP initiates Marchex (MCHX 8.99) with an Outperform and sets a $12 tgt, based on limited downside due to the value of its domain assets, which they calculate to be $8.11-$10.52 per share and a more focused strategy targeting the local online advertising market, which is gaining traction in ‘08… JMP initiates TheStreet.com (TSCM 8.85) with an Outperform and sets a $13 tgt… JMP initiates Greenfield Online (SRVY 13.45) with an Outperform and sets a $17 tgt, as they believe the stock remains undervalued primarily due to the unappreciated comparison shopping engine, which grew revenues at 74% in ‘07 with 53% operating margins… JMP initiates Bankrate (RATE 42.56) with an Outperform and sets a $53 tgt, based on catalysts that include recent Fed rate cuts and the recently approved stimulus plan, which raises the loan limit for GSEs, that could provide wind on the back for the mortgage business, the launch of its redesigned website in 2Q08 could improve monetization, new acquisitions that should scale in revenues and operating expense as they become part of Bankrate’s sites, and believe that these catalysts should drive a 30%+ CAGR in revenue and adjusted EBITDA in the next three years (2007-2010).
06:50 FIF Financial Federal reports Q2 EPS up 11% yr/yr to $0.51 vs $0.50 consensus (21.36 )

06:49 PBR Petrobras Net Declines 2.8% - WSJ (117.54 )

According to the WSJ, Petroleo Brasileiro SA, the state-controlled Brazilian oil company, reported fourth-quarter profit declined amid high costs of imported petroleum products and lower production. The 2.8% drop in profit to 5.05 billion reals ($2.98 billion) disappointed analysts, who had projected an increase amid robust global oil prices. The company, known as Petrobras, attributed the decline in part to higher prices for the light oil and diesel that Brazil must import. The company has not passed on to consumers international increases in politically sensitive products like gasoline and diesel fuel. Petrobras, which exports cheaper, heavier oil, was a net importer of oil in the fourth quarter. For the full year, Petrobras reported a 17% decline in net profit to 21.51 billion reals. Operating revenue for the full year increased 7.7% to 170.58 billion reals.
06:46 PTEN Patterson-UTI reports for the month of Feb 2008, it had an avg of 246 drilling rigs operating (23.29 )

Co announces that for the month of Feb 2008, the co had an average of 246 drilling rigs operating, including 230 rigs in the U.S. and 16 rigs in Canada. For the two months ended February 2008, the co had an average of 245 drilling rigs operating, including 230 rigs in the U.S. and 15 rigs in Canada.
06:45 CALLS Early Research Calls III

Miscellaneous: JMP initiates eHealth (EHTH 23.89) with a Strong Buy and sets a $32 tgt, as they believe eHealth offers a defensive investment opportunity, as IFP volumes tend not to fluctuate with the economy and could actually expand the potential market as unemployment increases while its leadership position provides barriers to entry and new opportunities… Oppenheimer initiates Gladstone Capital (GLAD 16.76) with a Perform says while they are impressed with mgmt and consider the dividend yield attractive, they believe the increasingly challenging macroeconomic environment raises the risk of deteriorating credit quality… Pacific Growth initiates 3Par (PAR 8.15) with a Neutral… Pacific Growth initiates VMware (VMW 55.81) with a Buy… JMP initiates ValueClick (VCLK 18.63) with a Market Perform and sets a $22 tgt, as they believe the co is recovering from a slowdown in its largest and fastest-growing business, lead generation, while uncertainty remains around the efficacy of this media under new regulatory guidelines and advertiser willingness to dabble in this media again and note management is guiding to a 20% decline in lead generation revenue in 2008 which should stunt revenue growth and operating leverage.
06:41 ESLT Elbit Systems subsidiary, Cyclone, will supply Spirit AeroSystems with commercial aircraft parts valued at $160 mln (55.68 )

Co announces that its subsidiary, Cyclone Aviation Products, was awarded a contract by Spirit AeroSystems to supply doors for commercial aircraft. The contract is valued at approximately $160 mln.
06:32 CALLS Early Research Calls II

Upgrades: Merriman upgrades Charles & Colvard (CTHR 1.24) to Buy from Neutral, as they believe current valuation doesn’t account for the potential wholesale value of the co’s manufactured inventory and method patent - making the co a potential acquisition target for a patient co in the jewelry or consumer products industry, in their view… Baird upgrades Diebold (DBD 38.84) to Outperform from Neutral and raises their tgt to $45 from $29, based on the expectation of a higher bid than United Technology’s current $40/share offer, which DBD has rejected… Bear Stearns upgrades Vonage (VG 1.83) to Peer Perform from Underperform… Jefferies upgrades Limelight Networks (LLNW 4.0 to Hold from Underperform and lowers their tgt to $4.25 from $5.00, based on valuation following Akamai’s intent to seek a permanent injunction against the co yet still feel the co has take-out potential, with Akamai as a possible acquirer and a premium as high as $6-7. Downgrades: BofA downgrades Best Buy (BBY 43.2 to Neutral from Buy… Lehman downgrades ConocoPhillips (COP 83.44) to Equal-weight from Overweight and maintains their $86 tgt, based on valuation and concerns over the significant cost increase reported by COP’s PV10 analysis in the 2007 10K… JP Morgan downgrades Par Pharmaceutical Cos (PRX 19.23) to Underweight from Neutral… JP Morgan downgrades Barnes & Noble (BKS 28.33) to Underweight from Neutral… Credit Suisse downgrades Deerfield Capital (DFR 3.24) to Neutral from Outperform… Jefferies downgrades Diebold (DBD 38.84) to Hold from Buy and raises their tgt to $40 from $32, based on the share price move, uncertainty in regard to the financial details of DBD’s businesses and their strong words against UTX’s proposal… Oppenheimer downgrades EOG Resources (EOG 122.17) to Underperform from Perform, based on valuation… Jefferies downgrades Novell (NOVL 7.12) to Hold from Buy and maintains their $8 tgt, based on valuation.
06:29 SCR Simcere Pharma reports Q4 earnings per ADS of RMB1.21 vs RMB0.86 two analyst estimate; reports revs up 56% yr/yr to RMB398.6 mln vs RMB333.5 mln single estimate (10.51 )

06:23 CALLS Early Research Calls I

Miscellaneous: Kaufman initiates VanceInfo Technologies (VIT 7.71) with a a Hold and sets a $9 tgt, as they see limited near-term P/E expansion with shares at 21x their ‘08 EPS estimate after the recent rally and remain concerned that expanding beyond the current (low billing rate) customer niche will require a SG&A investment that will hit margins… Kaufman initiates Longtop Financial Technologies (LFT 18.80) with a Sell and sets a $17 tgt, as they believe the Street is overlooking signs of a slowdown in software spending from the “Big 4″ Chinese banks (which now represent 33% of revenue, down 70% two quarters ago) and that the Street is giving Longtop too much credit for its extraordinary operating margins, which can be explained by accounting methods and other factors that have elicited far too little discussion, in their view… Kaufman initiates AsiaInfo Holdings (ASIA 10.13) with a Buy and sets a $15 tgt, as they believe there is further room for multiple expansion given the 25% growth profile, steady margins and stronger demand backdrop than for most U.S.-based technology vendors… Baird initiates Buffalo Wild Wings (BWLD 22.77) with a Neutral and sets a $26 tgt, based on a positive view of long-term fundamentals and valuation, offset by potential for external factors (sluggish consumer spending, possible cost pressures) restricting BWLD’s ability to reach high ‘08 expectations… Keefe, Bruyette resumes Western Alliance Bancorp (WAL 11.84) with a Market Perform and sets a $14 tgt, based on a strong core deposit base and earnings levers availabe to enhance future earnings power while risks include increased credit costs related to the heavily real estate-weighted loan portfolio in turbulent markets… Broadpoint initiates Pervasive Software (PVSW 3.83) with a Neutral, as they believe shares will remain range bound until the next Pervasive SQL product cyle gains traction… Broadpoint initiates Informatica (INFA 17.82) with a Buy and sets a $21 tgt, based on a financial model that reflects expanding operating margins, consistent with management’s goal of achieving 20% non-GAAP operating margins on a sustained basis by 2H08.
06:21 European shares pare gains as banks, autos fall

European shares surrendered their gains by mid-morning on Tuesday after a rally in bank shares faded and auto shares fell following Peugeot’s downward revision to the outlook for the European car market. By 1000 GMT the FTSEurofirst 300 index of top European shares was flat at 1,298.25 points, having fallen by as much as 0.2% to a session low of 1,295.94. London’s FTSE is currently down 0.5%, France’s CAC is lower by 0.8%, and Germany’s DAX is off -1%. (Reuters)
06:21 HK shares slide in volatile trade, Japan’s Nikkei share average ended flat; Sensex ends down 338pts

Hong Kong stocks fell for a third straight session on Tuesday, hit by sinking mainland stock markets and a prevailing caution ahead of a spate of blue chips’ earnings reports this week. The benchmark Hang Seng Index ended down 2% at 23,119.87. The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, finished down 3.5% at 12,972.21, having earlier hit its lowest level in three weeks. Japan’s Nikkei share average ended flat on Tuesday, with banks such as Sumitomo Mitsui Financial falling on worries about the economic outlook, offsetting gains in resource-related shares amid rising commodity prices. The benchmark Nikkei average ended flat, up just 0.1 point at 12,992.28. The broader TOPIX index lost 0.4% to 1,265.66… The Sensex opened with a positive gap of 64 points at 16,742, and moved up to a high of 16,754 in early deals. Selling at higher levels saw the index slip into negative zone in late morning deals, which intensified in noon deals, and the index dropped to a low of 16,165 - a decline of nearly 590 points from the intra-day high. Buying at lower levels saw the index recover around 250 points, and finally close with a loss of 338 points (2%) at 16,340. (Reuters, Business Standard)
06:17 S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -8.3.
06:16 European Markets

FTSE…5796.60…-22.00…-0.4%. DAX…6632.46…-57.49…-0.9%.
06:16 Asian Markets

Nikkei…12992.28…+0.10…0%. Hang Seng…23119.87…-465.10…-2.0%.
06:07 WIRES On The Wires -Update-

OraSure Technologies (OSUR) announces the execution of new agreements to expand distribution of OraSure’s cryosurgical wart removal product by Genomma Lab in the OTC market in Central and S. America; the parties renew and extended their prior distribution arrangement for Mexico and signed a new agreement to distribute the product in S. Africa… Amdocs (DOX) announces that the Defense Telematica Organization, part of the Netherlands Ministry of Defense, has deployed Amdocs Operations Support Systems solutions.
06:04 ENDO Endocare reports Q4 EPS of ($0.21) vs ($0.13) single estimate; revs $6.91 mln vs $8.35 mln single estimate (7.00 )

06:03 RMIX U.S. Concrete beats by $0.32, reports revs in-line; guides Q1 EPS in-line, revs in-line (3.98 )

Reports Q4 (Dec) earnings of $0.02 per share, excluding non-recurring items, $0.32 better than the First Call consensus of ($0.30); revenues rose 0.8% year/year to $198.7 mln vs the $198.8 mln consensus. Co issues in-line guidance for Q1, sees EPS of ($0.13)-($0.19) vs. ($0.17) consensus; sees Q1 revs of $150-160 mln vs. $151.92 mln consensus.
05:49 WIRES On The Wires -Update-

Belgacom announces that they have selected ADTRAN (ADTN) to supply Ethernet access lines on copper to their new Explore professional service platform.
05:47 ABK Ambac decides against splitting - Financial Times (9.94 )

Finacial Times reports Ambac (ABK) has decided against splitting in two as it completes a $2 bln-$3 bln recapitalization, insiders said. Under a recent proposal, Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance business with potentially lower ratings. Eight banks, led by Citigroup (C) and UBS (UBS), which between them bought the most guarantees from Ambac, are together preparing to inject $2 bln or more into the monoline, The capital infusion, which is likely to include other investors beside the banks, could be announced as early as Wednesday, people involved in the talks said. The deal is expected to result in Ambac remaining a single entity with a triple-A rating. Although Ambac’s past guarantees are expected to remain together, its future business is likely to be different.
05:37 Loss of Yasmin contraceptive patent knocks Bayer - Reuters

Reuters reports shares in Bayer (BAYRY.PK) fell as much as 5.6% on Tuesday after a U.S. court voided the patent on its Yasmin oral contraceptive drug, prompting the co to tweak its healthcare margin goal. The U.S. court ruling capped years of legal wrangling and paved the way for Barr Pharmaceuticals (BRL) to sell a generic version in the U.S. market. Bayer has said it disagreed with the court’s decision and will consider its legal options. Bayer now aims for its Bayer HealthCare unit to improve its core earnings (EBITDA) margin before special items “toward” 27% in 2008 from 25.6% in 2007. Its 2009 margin target of around 28% remained in place, it added. It had previously targeted a 2008 healthcare margin of about 27%. Sales of Yasmin in the U.S. were 321 mln euros ($487 mln) last year. Bayer also said it was evaluating the impact of the court’s decision on another product of the co’s line of oral contraceptives, YAZ.
05:34 C Gulf investors not enough to rescue Citigroup: Dubai - Reuters (23.09 )

Reuters reports Gulf investment agency Dubai International Capital said on Tuesday it would take “a lot more money” to rescue Citigroup (C) following investments from Abu Dhabi, Kuwait and Saudi Arabia’s Prince Alwaleed. Sameer al-Ansari, chief executive officer of the investment agency owned by the ruler of Dubai, was asked by Reuters what it would take to rescue the bank. Dubai International Capital, which manages about $13 bln of assets, has invested in HSBC Holdings (HBC) and India’s ICICI Bank (IBN). “It’s going to take more than that to rescue Citi,” he had earlier told a private equity financial conference.
05:31 Companies are piling up cash - NY Times

The NY Times reports the increase over the last decade in the amount of cash, as a percent of total assets, for the companies in the S&P 500-stock index has been steep. One study shows that the average cash ratio doubled from 1998 to 2004 and the median ratio more than tripled, while debt levels fell. According to S&P, the total cash held by companies in its industrial index exceeded $600 bln in February, up from about $203 bln in 1998. Rene M. Stulz, who holds the Reese chair in banking and monetary economics at the Fisher College of Business at Ohio State University, said research he conducted with two other professors on corporate cash levels since 1980 indicated that growing cash holdings over that period most likely reflected the simple fact that the world became a much riskier place for business. “Companies responded to those rising risks by saving more,” said Professor Stulz, whose study excluded utilities and financial companies because their cash reserves are monitored by regulators. An even longer savings trend was spotted by Jason DeSena Trennert, managing partner and chief investment strategist at Strategas Research Partners in New York, who said his own rough examination of corporate balance sheets shows that “cash, as a percent of total assets, is as high as it’s been since the 1960s.”
05:29 Citigroup, Wachovia face lawsuits involving credit derivatives - WSJ

The Wall Street Journal reports in separate lawsuits filed in a New York federal court, a $58-mln-asset hedge fund alleges that Citigroup (C) and Wachovia (WB), respectively, improperly required the fund to pay out more money from insurance derivatives contracts known as “credit default swaps” amid a steep decline in the value of mortgage-backed bonds. The hedge-fund manager says he didn’t view the insurance-related trades as particularly risky and now says he feels “suckered.” Citigroup and Wachovia each say the fund’s claims are “without merit.” Meantime, other financial players say they have been stiff-armed by trading partners when they’ve tried to cash out on profits from such insurance-related transactions. In one instance, a hedge-fund manager says he was blocked from selling out of a swap position, unless he made another credit-default swap trade. The legal cases underline the gridlock that can emerge when such insurance agreements break down. One suit, filed Feb. 14, outlines a credit-default-swap agreement in which Citigroup bought $10 mln of protection against a security backed by subprime-mortgage assets from a small Florida hedge fund with just $58 mln in capital. The security was a CDO. The fund — VCG Special Opportunities Master Fund Ltd., which is owned by an investment firm that also owns a Puerto Rican investment bank — alleges that Citigroup breached its contract after the bank demanded the fund post additional collateral. By this January, the hedge fund says, the collateral Citi sought from it nearly equaled the $10 mln “notional,” or underlying, amount of the swap. In the other suit, the hedge fund, which at that time was named CDO Plus Master Fund Ltd., says it sold credit protection on a mortgage-related security to a unit of Wachovia last May, only to be asked to pony up millions of dollars of collateral in the ensuing weeks.
05:21 Early Newspaper Headlines: C/WB - BAYRY.PK/BRL - ABK

WSJ: Citigroup (C), Wachovia (WB) face lawsuits involving credit derivatives. NY Times: Companies are piling up cash. Reuters: Gulf investors not enough to rescue Citigroup (C): Dubai… Loss of Yasmin contraceptive patent knocks Bayer (BAYRY.PK). Financial Times: Ambac (ABK) decides against splitting.
04:41 ABM ABM Industries misses by $0.01; issues in line FY08 EPS guidance and raises quarterly dividend 4.2% (19.88 )

Reports Q1 (Jan) earnings of $0.16, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.17; revenues rose 31.1% year/year to $922.64 mln (no estimate available). Co issues in line guidance for FY08, sees EPS of $1.20-1.35 vs $1.23 consensus. Dividend is increased 4.2% y/y to $0.125.
02:53 APC Anadarko announces sale of Peregrino and Kaskida (64.20 )

Co announces the sale of its 50% interest in the Peregrino field offshore Brazil and its 25% interest in the BP (BP)-operated Kaskida Unit in the deepwater Gulf of Mexico to StatoilHydro for cash proceeds of $1.8 bln plus additional consideration valued at $300 mln.
02:50 WIRES On The Wires -Update-

Cell Therapeutics (CTIC) announces that it will issue approx $51.7 mln of new 9% Convertible Senior Notes due 2012 and warrants to purchase 7,326,950 shares of common stock, no par value; the Notes bear interest at 9% per annum and are convertible at any time for shares of CTI common at the rate of 709.22 shares per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approx $1.41 per share… Tech Data (TECD) announces it has entered into an agreement to acquire certain assets of Scribona AB, a publicly traded IT distribution co in the Nordic region of Europe with operations in Sweden, Finland and Norway.
00:49 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Linn Energy (LINE), ALCOA (AA), USEC Inc (USU), Gibraltar Industries (ROCK), Telefonica (TEF) and Google (GOOG).
00:48 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Chesapeake Energy Corp (CHK), Freeport-McMoRan (FCX), CVRD (RIO), Mosaic (MOS), Nucor (NUE), Transocean (RIG) and America Movil (AMX).
00:46 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Monday’s edition, Jim claims Potash (POT) is the co best positioned to take advantage of a rise in commodity prices. With the high cost of entry, Cramer expects little, if any, new competition to challenge Potash’s dominance. Next, he recommends Agnico-Eagle Mines (AEM) as the gold stock to own. According to Cramer, Agnico is the second lowest cost producer of gold behind Yamana (AUY), and after interviewing the co’s CEO last Friday, he says the story is just too good to pass up. Finally, he predicts natural gas is headed to $16 and favors Chesapeake Energy (CHK) as a result. Cramer said he likes the co for its production growth and strong insider buying. Chesapeake is set to increase its production by 21% this year and is the most levered to the rising price of natural gas.
00:44 LINTA Liberty Media announces issuance of new tracking stock (14.73 )

Co announces at the close on March 3, 2008, each share of Series A Liberty Capital common stock was reclassified as one share of the reclassified Series A Liberty Capital common stock and 4 shares of the new Series A Liberty Entertainment common stock, and each share of Series B Liberty Capital common stock was reclassified as one share of the reclassified Series B Liberty Capital common stock and 4 shares of the new Series B Liberty Entertainment common stock. The Liberty Entertainment common stock is intended to track and reflect the separate economic performance of the new Entertainment Group.
00:41 MTG MGIC Investment files registration statement for common stock offering (14.81 )

Co announces that it has filed a registration statement with the SEC covering the sale by it of additional shares of common stock. MGIC said it had made no decision on the amount of common stock it planned to offer. The registration statement indicated that MGIC might raise additional capital in forms other than common stock. MGIC said it expects to make decisions on the size of the common stock offering and on any other forms of capital by mid to late March, subject to market conditions and the review status of the registration statement.
00:39 BEXP Brigham Exploration reports EPS in-line, beats on revs (8.01 )

Reports Q4 (Dec) earnings of $0.07 per share, excluding unrealized derivative losses, in-line with the First Call consensus of $0.07; revenues rose 14.1% year/year to $28.3 mln vs the $26.3 mln consensus.
00:34 AGN Allergan receives subpoena from DoJ, U.S. Attorney’s Office for Northern District of GA relating to promotional practices of BOTOX for therapeutic uses (58.66 )

Co announces that it received a subpoena from the DoJ, U.S. Attorney’s Office for the Northern District of Georgia requesting the production of documents regarding promotional practices involving BOTOX for therapeutic indications. The subpoena broadly requests documents regarding promotional, educational and other activities relating to BOTOX. Allergan’s current understanding is that the inquiry involves questions regarding alleged off label promotion relating to the use of BOTOX for the treatment of headache.
00:30 WIRES On The Wires

In connection with its Registration Statement on Form F-3, effective as of February 25, 2008, Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY) announces that holders of its ADSs on the record date of February 27, 2008 received rights to subscribe for 0.561141 new ADSs for every ADSs held of record; the non-binding indicative subscription price for each new common share and ADS is Ps.5.37 and $17.01, respectively… Brady (BRC) announces that it has acquired DAWG, a direct marketer of sorbents, spill-containment products, safety-storage cabinets, first-aid kits, and other products; financial terms weren’t disclosed.
Monday After the Close
19:09 WRAPX After Hours Summary: INTC -2.7% on lower gross margin guidance; PMI -8.1% (reports Q4 results for U.S. Mortgage Insurance and International Operations)

Companies moving in after hours trading in reaction to earnings: Trading Up: SNTS +18.3%; BITS +15.9%; QSC +13.0%; SUPG +8.6%; OVEN +8.6%; FLML +4.4%; CMOS +1.5%; IPCS +1.4%… Trading Down: OMPI -13.0%; NCS -13.8%; SLXP -8.4%; HMIN -7.1%; BKS -5.4%; AVAV -1.6%; FNSR -1.3%… Companies moving in after hours trading in reaction to news: Trading Up: CHRD +14.2% (announces $25 mln stock repurchase authorization); BRL +5.1% (announces favorable ruling in Yasmin Patent Challenge); WNC +2.7% (appoints Joseph Zachman to Senior Vice President and Chief Operating Officer effective immediately); RAME +1.8% (says full year reserve replacement rate of 1500% with drilling and acquisition cost of $15 per boe); ESI +1.8% (Blum Capital discloses 8.4% stake in SC 13D filing); CPLA +1.6% (announces authorization of the repurchase of up to $50 mln of the co’s common shares)… Trading Down: INTC -2.7% (lowers Q1 gross margin forecast due to lower NAND flash memory prices); PMI -8.1% (reports Q4 results for U.S. Mortgage Insurance and International Operations); CETV -5.4% (to offer $425 million of senior convertible notes); LF -5.2% (announces $25 mln stock repurchase authorization); RAMS -3.1% (announces sale of the Arius for $21.825 mln); SD -2.0% (announces that President and CEO Tom Ward WILL make open-mkt purchases during 2008 of up to $100 mln of co common equity for his personal account); IPCS -1.2% (Park Dental announces separation from ADPI); MBI -1.1% (MBIA Inc CEO: mark-to-market losses can ‘reverse over time’ — DJ); ATU -1.0% (acquires Superior Plant Services for approx. $57 mln in cash); KLAC -1.0% (announces resignation of CFO Jeffrey Hall).