Data Feed

08:55 CCC Calgon Carbon awarded $55 mln contract for mercury removal (15.97 )

Co announces that it has been awarded a contract by a major U.S. power generator to supply Fluepac MC+ and Fluepac CF+ activated carbon to remove mercury from the flue gas of coal-fired power plants in the Midwest. Under terms of the guaranteed contract, the customer has agreed to purchase over the next five years a minimum amount of activated carbon valued at $55 mln.
08:54 KAMN Kaman: Aussie desire to terminate Helo contract removes an overhang – Stifel (23.52 )

Stifel says that KAMN noted it has been notified by the recently elected government of the Commonwealth of Australia that it wishes to initiate negotiations to end the Sea Sprite program on mutually agreed terms. Firm believes this is largely a political move as Kaman mgmt has maintained its stance that it has performed under the contract, which was initiated in 1997. They view this to mean that the potential exists for a payment to KAMN, the elimination of the overhang that has concerned investors, and an opportunity to move forward on programs that should provide rev and earnings growth. Firm does not believe that the termination of the contract will result in any impact to KAMN’s earnings going forward.
08:54 UAM Universal American Corp sees Y08 EPS less than previously forecasted (17.04 )

Co sees Y08 EPS of $1.56-1.74 vs $1.83 consensus; co has determined that expected operating income for Y08 from its MemberHealth business, which it acquired in Sep 2007, will be less than previously forecast. Premium payments to MemberHealth will be lower than anticipated based upon the bids submitted by MemberHealth in June 2007 for its 2008 Part D plans. The premium payments are lower primarily as a result of a miscalculation of the risk scores in the MemberHealth bids. Co has also learned that MemberHealth incorrectly calculated its expected risk corridor receivable in its 1Q07 financial statements, resulting in an overstatement of pre-tax income for Q1 of approx $26 mln.
08:51 HBC HSBC Holdings purchase of stake in Korea Exchange Bank is approved in South Korea – NY Times (76.96 )

NY Times reports the $6.3 bln purchase by HSBC Holdings of a stake in Korea Exchange Bank will not hinder market competition, the Fair Trade Commission said. But a commission spokesman added that the final decision on the deal belonged to the Financial Services Commission.
08:50 WIRES On The Wires

Crown Media Holdings (CRWN) announces it has renewed its distribution agreement for Hallmark Channel with DIRECTV (DTV) for a multi-year term… Raser Technologies (RZ) announces that it has initiated the development of two additional geothermal projects. The two additional projects announced include a second 10 MW plant in Utah and the company’s first 10 MW plant in Oregon.
08:48 NCS NCI Building Sys downgraded to Neutral from Buy at SMH Capital (23.54 )

08:48 TIVO TiVo: Fiscal 4Q08 will be a transitionary – Kaufman (8.03 )

Kaufman says TIVO will report fiscal 4Q08 and full year results today after the close. Firm expects TIVO’s operating losses to narrow vs. a year ago. Firm’s fiscal 4Q08 ests are for service and technology rev of $60 mln, EBITDA losses of $9 mln and an EPS loss of $0.10. Firm says TiVo’s subscriber growth is likely to continue to be anemic. They expect TiVo to lose a net of 120,000 to 125,000 subs in fiscal 4Q08. Firm does not expect an update on TiVo’s legal battle with DISH Network.
08:48 SCANX Gapping up

In reaction to strong earnings/guidance: BIG +18.5%, MFB +16.4%, CSIQ +9.4%, CAP +6.5%, SMTC +6.2% (announces new $50 mln stock buyback plan), DIET +2.6%, CXR +2.2%, PFE +1.2%… M&A news: PKTR +31.9% (Elliot Associates offers to aquire for $5.50/share in filing)… Select solar stocks showing strength following CSIQ earnings: SOLF +3.0%, SPWR +1.8%, ESLR +1.8%… Other news: PANC +39.1% (announces discovery of bevirimat patient response predictors; completed phase 2b dose escalation study determines optimal dose range and upgraded to Outperform at Bear Sterns), SCON +7.7% (closes on $15.0 million investment by Hunchun BaoLi Communication), CYD +7.1% (wins major contract for Beijing Olympics), TIBX +7.0% (Citigroup says better than 50/50 chance co is acquired in next 12 mos), CHU +6.4% (traded higher in overseas trading), ATML +6.2% (still checking), PCOP +4.9% (collaboration with Celgene Corporation advances compound into Phase 1 clinical development), TS +4.1% (still checking), AMLN +4.1% (still checking), TMA +3.9% (modestly rebounding after 60% drop over past two days), ABK +3.7% (unlikely to announce any capital raising deal Tuesday, according to source – Reuters), DIVX +3.3% (announces stock repurchase program of up to $20 mln of common stock), UBS +2.4% (still checking), AVA +1.8% (requests increase in Electric and Natural gas prices in Washington), BSC +1.7% (CITIC confirms talks to reopen Bear Stearns deal – Reuters.com), C +1.3% (WSJ reports co isn’t looking to raise capital)… Analyst upgrades: KFY +5.1% (hearing removed from Conviction Sell List at tier 1 firm), OMPI +4.8% (upgraded to Outperform at Oppenheimer), FNM +2.2% (upgraded to Equal Weight at Morgan Stanley), PDC +2.0% (upgraded to Buy at Deutsche Bank), OPTM +1.8% (upgraded to Outperform at Oppenheimer), JBL +1.3% (upgraded to Neutral at Merrill), ELN +1.3% (added to Focus List and initiated with Outperform at Credit Suisse), LOGI +1.0% (initiated with Buy at Citigroup), MSFT +0.4% (initiated with Buy at Jefferies).
08:46 LUV Southwest Air reports February traffic; 12% increase in RPMs (12.64 )

Co announces that it flew 5.4 bln revenue passenger miles in February 2008, a 12% increase from the 4.8 bln RPMs flown in Feb 2007. Available seat miles increased 9% to 7.9 bln from the Feb 2007 level of 7.3 bln. The load factor for the month was 68.6%, compared to 66.8% for the same period last year.
08:46 PANC Panacos Pharma: Some clarity on predicting bevirimat response, but market segmentation may lead to decreased revenues; tgt cut to $3 – Needham (0.69 )

Needham says PANC mgmt announced during its quarterly call yesterday that the co has identified variations in HIV gene sequences that predict response to bevirimat. Although further refinements to the predictive algorithm are likely to come, they are encouraged by preliminary indications that the test may be simple (~5 markers) and accurate (90%). Nevertheless, we note that the potential market for bevirimat is limited by the number of patients infected with bevirimat sensitive virus. Firm believes peak sales for bevirimat may be in the range of up to $200 mln. Firm reducing ests to reflect the drug’s more limited market potential. Firm cuts tgt to $3 from $8.
08:45 MF MF Global: Trader spurs Federal probe – WSJ (19.14 )

WSJ reports federal law-enforcement authorities are investigating wheat-futures trades by MF trader Evan “Brent” Dooley that led to a $141.5 mln loss at the brokerage last week, according to people familiar with the matter. A person with knowledge of the investigation said it is being conducted by the office for the Northern District of Illinois in Chicago. That office is led by Patrick Fitzgerald, who investigated the leak of the identity of former Central Intelligence Agency officer Valerie Plame. MF Global isn’t the target of the investigation, said Sheldon Zenner, a lawyer at Katten Muchin Rosenman who is representing MF Global. It is unclear whether the federal probe will lead to criminal charges. CME Group, which regulates MF Global, and the Commodity Futures Trading Commission are looking into the matter.
08:43 TIBX TIBCO Software: Near-term earnings risk mitigated, better than 50/50 chance co is acquired in next 12 mos – Citi (7.03 ) -Update-

Citigroup notes that TIBX announced it will report Q1 results on 3/27, and they think this removes the near term risk that TIBX will materially miss its Q1 guidance. Firm thinks that potential acquirers of TIBX — IBM (most likely), SAP, HPQ, ORCL, JAVA, EMC, CSCO — will revisit an acquisition of the last remaining meaningful middleware provider. Accordingly, firm believes there is a better than 50/50 chance TIBX is acquired in the next 12 months. Firm believes the appropriate takeout range for TIBX is $11.25-$13.00.
08:42 ADCT ADC Telecom: Expecting seasonally in-line quarter – Kaufman (13.50 )

Kaufman says ADCT will report fiscal 1Q08 results after the close today. For fiscal 1Q08, firm is projecting revs and pro forma EPS of $314.4 mln and $0.21, respectively. This compares to firm’s prior est of $306.5 mln and $0.21, respectively. Firm’s rev expectation equates to a Q/Q decline of 4.6%, vs. mgmt’s guidance of a Q/Q decline of 3%-7%. The comparable consensus ests are $318.1 mln and $0.18, respectively. Firm is looking for essentially flat fiber-connectivity revs with continued strength in FTTX-solutions and seasonally weak traditional solutions. Firm is also projecting a seasonal decline in copper-connectivity revs in the January quarter of 9%.
08:41 Radio ad revenue last year fell to 2003 level – WSJ

WSJ reports radio advertising revenue last year fell back to 2003 levels, a report from the Radio Advertising Bureau, an industry group, showed. Over-the-airwaves radio ad revenue totaled $19.63 bln last year, a 2.6% drop from $20.14 bln in 2006. The figure has held steady at about $20 bln for the past few years, and hasn’t seen any big gains since the Internet boom of the late 1990s. Radio’s Internet and other off-air revenue rose 10% to $1.68 bln. The numbers for 2007, coupled with the incremental growth of the past few years, “speak to the fact that in good economic times, you can’t count on radio to grow,” says John Blackledge, a media analyst at J.P. Morgan. Now the overall economy is on shakier ground, he expects radio revenue to shrink 3% this year.
08:38 AAPL Apple: MySpace is rumored to be among the first developing third-party native iPhone software – Electronista (124.62 ) -Update-

Electronista reports MySpace (NWS.A) is in the midst of developing a native iPhone and iPod touch application, Electronista has learned. Although details of what the app involves remain closely guarded, the product is known to be the result of early SDK access and is described as impressive compared to current mobile versions of the social networking site. Whether it will support MySpace’s signature music and video services is unknown, though neither are likely given the lack of a native Adobe Flash port for the handset or else iPhone-friendly content on the site’s servers.
08:37 WIRES On The Wires

Edwards Lifesciences (EW) announces the first three human implants of the Edwards transcatheter aortic heart valve… Teledyne Technologies (TDY) is awarded $7.5 mln contract to support NASA test laboratory.
08:37 XOM Exxon Mobil lawyer says losses from Venezuelan Cerro Negro Proj over $12 bln – DJ (86.69 )

08:36 BIIB Biogen Idec: Rituxan PPMS preview – Very High Hurdle – Lehman (59.14 )

Lehman is maintaining their Equalweight on shares of BIIB ahead of much anticipated Rituxan data in primary progressive MS (PPMS). In reviewing historical literature firm believes that the role of a B-cell depleting therapy is questionable in what is primarily a degenerative condition and have concerns with clinical trial design elements that may confound any drug benefit
08:36 TYC Tyco reaches agreement to sell Nippon dry-chemical unit to Daiwa Securities SMBC; terms were not announced (41.13 )

Co announced that it has sold its subsidiary, Nippon Dry-Chemical Co. Ltd., to the SPC owned by Daiwa Securities SMBC Principal Investments Co. Ltd., a subsidiary of Japan-based investment bank Daiwa Securities SMBC Co. Ltd., pursuant to an agreement entered into on February 19, 2008. Financial terms were not announced.
08:35 SYI Synvista highlights newly published data demonstrating the value of Haptoglobin Genotype Testing in people with diabetes (2.20 )

Co announces the publication of a pre-planned sub-analysis from the ICARE study demonstrating that the addition of vitamin E to statin therapy prevented more cardiovascular events (heart attack, stroke and cardiovascular death) than statin therapy alone in patients with Diabetes Mellitus who tested positive for a genetic marker called Haptoglobin 2-2 (Hp2-2). This sub-analysis was published in the March issue of Arteriosclerosis, Thrombosis and Vascular Biology, a journal of the American Heart Association.
08:35 UBS UBS: FT Alphaville comments on UBS asset sale rumors (30.80 ) -Update-

FT Alphaville reports $20 bln of Alt-A mortgage securities are to be sold to bond giant PIMCO. Such is the talk going around London dealing rooms anyway. Shares in UBS are up 1.6% on the speculation. The Alt-A MBS have reportedly been sold at 70c on the dollar, which would be a massive loss, since UBS valued what looks to be the same instruments at 96c on the $1 just three weeks ago in their 2007 results. In fact, the bank’s previously undisclosed and massive Alt-A exposure was something of a shock at the time. If rumors of the sale prove to be accurate, a $4 bln + writedown notwithstanding, then UBS shareholders should be pleased. The bank narrowly escaped having its emergency recapitalization plans voted down at the recent EGM. An asset sale raising $20 bln should keep further SWF incursions at bay for a while. All that, of course, assuming this story stands. Pimco officials have been cold towards mortgage securities for some time.
08:33 CSK Chesapeake beats by $0.03, beats on revs (3.65 )

Reports Q4 (Dec) loss of $0.34 per share, $0.03 better than the First Call consensus of ($0.37); revenues rose 4.8% year/year to $270.3 mln vs the $251.9 mln consensus.
08:32 CSK prelim ($0.39) vs ($0.37) First Call consensus; revs $270.3 mln vs $251.90 mln First Call consensus

08:32 TRIS Tri-s Security sees FY08 revenue guidance of $125 – $130 mln (2.29 )

Co announced year end December 31, 2007 revenues are estimated at $89.1 mln, an 18% increase over the December 31, 2006 reported revenue of $75.7 mln. Full Year 2008 revenue is estimated between $125 mln to $130 mln, an increase of over 48% in estimated revenue for 2007. There is no consensus for guidance.
08:32 S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +4.8.

Futures continue to indicate a positive open, though off its highs as a result of the negative ADP Employment report. The revised fourth quarter nonfarm productivity reading came in at 1.9%, which is above the consensus forecast of 1.8%. The reading is slightly higher than the prior fourth quarter reading of 1.8%.
08:31 ICGN Icagen reports Q4 EPS of ($0.09) vs ($0.12) single estimate; reports revs up 65% yr/yr to $2.9 mln vs $2.9 mln single estimate (1.79 )

Co sees Y08 revs of $11-12 mln vs $11.5 mln single estimate.
08:31 OXPS OptionsXpress to increase dividend by 28% to $0.08 from $0.0625 (23.46 )

08:31 SPIR Spire receives solar simulator order from NREL (15.78 )

Co announces that it has received a purchase order for its advanced Single Long Pulse Solar Simulator from the United States Department of Energy’s National Renewable Energy Laboratory.
08:30 ECONX Unit Labor Costs-revised 2.6% vs +2.1% consensus

08:30 ECONX Productivity-revised 1.9% vs +1.8% consensus

08:29 BONDX Grabbing Back Some Ground… 10-yr is +07/32 yielding 3.594%

The market is bid as more data looms and still no deal has been announced on Ambac’s bailout, which was the primary catalyst for yesterday’s late session sell off. Globally, bonds were mixed-to-better on decent data and a softening up of risk aversion. The 2-10-yr yield spread is steeper at 199.6, brushing up against yesterday’s steepest level in almost 4 years. Bond prices in the EuroZone were weak with services data surprising to the upside while in Japan, bonds were bid on bad capital spending data. The bad ADP number has given treasuries an added boost but that looks like it’s getting sold at the open. Beyond ADP, the market will digest ISM services and factory orders, neither of which are expected to shine. Bonds should manage to keep a bid but after yesterday’s knee-jerk sell-off on the equity recovery and good vibe off Ambac rumors, prices look very shaky at these levels. Yesterday’s flip lower was just a reminder how exposed bonds will be to the downside should risk aversion recede. The buck was doing better on the majors, with the euro off a touch near 1.5200 even after ADP, getting little from the day’s data, action and ahead of the region’s upcoming policy meeting. The yen is off but remains near recent highs, also off on correction trade. Gold is flat but still open to inflation related bids with spot now 964.71 (+0.70) while crude is bid on production expectations now 100.40 (+0.88). ADP is over with productivity revisions (8:30), factory orders and ISM services (10) and Fed’s Beige Book (14) due. There is no set Fed-speak scheduled. The euro is at 1.5210 and the yen is at 103.5100. For more bond commentary click here.
08:29 AAPL Apple ests cut at JP Morgan (124.62 ) -Update-

JP Morgan lowers their Mar qtr ests, taking their rev est to $6.65 bln from $6.98 bln (consensus $6.94 bln) and EPS est to $1.05 vs $1.05 consensus. While they are lowering iPhone and iPod estimates, they believe sentiment has already become fairly cautious on these segments. Expectations for Macs, however, remain high, so they are closely monitoring the sensitivity of this segment to consumer spending trends.
08:28 China to approve telecoms restructuring soon, according to paper – Reuters.com

Reuters.com reports Beijing is expected to soon kick off a long-awaited reshuffle of China’s telecommunications sector that would involve mergers and acquisitions among the main telecoms players, a senior industry executive was quoted on Wednesday as saying. Chang Xiaobing, chairman of China United Telecommunications Co (Unicom) told the official Shanghai Securities News that the final restructuring plan was currently being reviewed by the State Council, or cabinet. “We won’t wait that long. When the restructuring plan is announced, all telecoms operators will move according to the rules of the capital markets,” Chang was quoted by the newspaper as saying when asked if the restructuring would start this year. “Restructuring is the trend, as it would be positive for the development of the industry and benefit consumers more,” he said. (Stocks mentioned: CHU, CHL, CN)
08:28 GU Gushan Environmental Energy reports Q4 earnings per ADS of ($0.04) may not compare to $0.30 two analyst estimate; reports revs up 50.4% yr/yr to $37.2 mln vs $34.8 mln single estimate (10.21 )

Co sees Y08 total biodiesal production volume of approx 270k tons, or approx 81 mln gallons.
08:26 UMC United Micro downgraded to Equal Weight from Overweight at Lehman (3.17 )

08:26 SMI Semi Manufacturing downgraded to Underweight from Equal Weight at Lehman (3.88 )

08:25 TSM Taiwan Semi upgraded to Overweight from Equal Weight at Lehman (10.02 )

08:22 BHP BHP Billiton expects RTP offer documents won’t be sent until late 2008 – DJ (71.60 )

DJ reports the co Chairman Don Argus said that the group’s bid for Rio Tinto (RTP) still has a long time to run. “The process has a long time to run – an offer document is not expected to be posted to shareholders until late 2008 following BHP Billiton completing the necessary antitrust and other regulatory processes,” Argus said in a slide presentation to be delivered to an Australian Shareholders Association/ASX meeting in Melbourne. He repeated BHP’s view that the combined entity will have a unique portfolio of Tier 1 assets and the groups have highly complementary large scale, low cost and long life assets with superior future growth options.
08:22 FUQI Fuqi Intl: Sell-off over done; buy on weakness – Brean Murray (6.79 )

Brean Murray believes recent weakness in FUQI reflects investors’ continued concern over the co’s margin outlook and execution. Such concerns may be overdone, in firm’s view. They believe the margin erosion in 4Q07 was largely due to some one-time factors, and the macro environment looks very positive so far in 2008. Firm views the current weakness in FUQI as a buying opportunity for short- and long-term investors.
08:21 LCAPA Liberty Media Capital downgraded to Hold at Stifel (17.46 ) -Update-

Stifel downgrades LCAPA to Hold noting yesterday, old LCAPA split into two new trackers, new LCAPA and LMDIA: The new LCAPA tracking stock is a holding company with its major assets being equity collars, stakes in TWX, S, MOT, the Atlanta Braves, and other available for sale securities. Firm says some key stakes may be oversold, but potential upside is limited given hedges. While the TWX position is only about 10% hedged, they estimate that the stakes in S and MOT are 90% and 65% hedged, respectively. This means that fluctuations in the prices of S and MOT, either up or down, should have a muted effect on the valuation of LCAPA.
08:21 PRFT Perficient: Sell-off overdone; buy on weakness – Brean Murray (7.17 )

Brean Murray says yesterday morning PRFT reported favorable 4Q07 results, slightly exceeding firm’s rev est and beating their non-GAAP EPS est (and consensus) by $0.01. The co lowered its EPS guidance for 2008, while providing 1Q08 rev guidance that was below their est (and consensus). Firm is reducing their ests, while maintaining their Buy rating with a reduced tgt of $12 (previously $20).
08:20 Wireless boom lifts cell towers – WSJ

WSJ reports there may be no bigger fans of wireless carriers’ new unlimited-calling plans than cellular-tower cos. Verizon Wireless, AT&T and T-Mobile USA all have unveiled plans that provide unlimited calls for a flat rate beginning at $99.99. Cell-tower operators such as AMT, CCI and SBAC stand to benefit because more traffic means more money for them. It is the latest growth catalyst for a sector that already has plenty. The tower cos also look forward to the prospect of further third-generation network upgrades, more data and voice usage and the possible build-out of WiMax networks. As fears of a potential price war among wireless-service providers mount, steadier growth prospects for tower cos make them better safe havens for investors than do traditional telecom stocks.
08:19 RF Regions Fincl upgraded to Hold at Stifel (20.81 )

Stifel upgrades RF to Hold from Sell based on valuation. The firm notes the shares are down approx 40% since their initiation last April and now trade at 8.5x their revised 2009 EPS estimate and 1.9x estimated tangible book value per share of $10.89.
08:18 OSBC Old Second Bancorp initiated with a Hold at Stifel (25.26 )

08:17 S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +5.5.

Futures slipped on the latest ADP jobs report, but still point to a positive start. The February ADP Employment Report indicated 23,000 jobs were lost, below the expected 18,000 increase. January’s revised reading indicated 119,000 jobs were added. Notably, the report measures only nonfarm private payrolls, whereas Friday’s jobs report measures public and private nonfarm payrolls.
08:16 ECONX Reminder: Q4 Productivity due out in about 14 min at 8:30ET

08:15 PRICE Filings, Offerings, Pricings and IPOs

Offerings: Health Care REIT (HCN) files for a 3 mln share offering. Fillings: Stifel Financial (SF) files for a 2.2 mln share offering, 300K shares by the company and 1.9 mln shares by a selling stockholder. IPOs: K-Sea GP Holdings LP files for a $100 mln IPO.
08:15 Researchers persue better drug for Alzheimer’s – WSJ

WSJ reports drug makers are pursuing the next advance in Alzheimer’s disease treatment, which holds the promise of slowing mental deterioration and improving cognitive functions. Among those chasing a better Alzheimer’s drug are WYE and ELN. The cos have been working together on a new approach for several years, and they might learn within months whether it is the right one. Their experimental drug is called bapineuzumab. An early, small study suggested it has potential to improve cognitive function in Alzheimer’s patients, though the drug has also been associated with a fluid buildup in the brain… BAX and MYGN are studying other drugs that could improve Alzheimer’s treatment. Like the Wyeth-Elan compound, these other drugs also hold promise of slowing Alzheimer’s by reducing amyloid in the brain. But the hurdles are high. A past effort by Wyeth and Elan to develop an amyloid-fighting Alzheimer’s drug, known as AN-1792, failed in 2002 after reports of brain inflammation, or encephalitis, in a patient study.
08:15 ECONX ADP Employment Change -23K vs 18K consensus; prior 126K

08:14 PKTR Packeteer: Elliot Associates amends 13D filing; offers to aquire co for $5.50/share in cash (3.86 )

In filing, the firm states “the Reporting Persons stated in the March 5 Letter that they are prepared to offer to acquire the Issuer for a price of $5.50 per share in cash. The Reporting Persons believe that this represents a 42% premium to the March 4 closing share price of the Common Stock and, given that over half of the Issuer’s market capitalization is reflected in its net cash position, is a 95% premium to the Issuer’s enterprise value. This is also a 19% premium to the trailing 30-day closing price. The Reporting Persons believe that their offer provides Issuer’s shareholders immediate, quantifiable value, which the Reporting Persons do not believe the Issuer can achieve in today’s economic environment. The March 5 Letter further states that although the Reporting Persons prefer to work together with the Issuer immediately to negotiate a definitive merger agreement, they are prepared to proceed promptly with an offer directly to the Issuer’s shareholders if the Issuer chooses not to engage with them.” The firm discloses a 5.9% stake in the filing.
08:13 WIRES On The Wires

Logility (LGTY) announced that C&C Group has selected Logility Voyager Solutions to support its continued growth through increased demand visibility and a more formalised and collaborative forecasting process… ImClone Systems (IMCL) announces that the initial stage of a series of Phase I/II clinical trials of IMC-A12, its anti-insulin-like growth factor-1 receptor monoclonal antibody, in children with relapsed or refractory solid malignancies, has commenced patient enrollment.
08:13 ISLE Isle of Capri reports Q3 (Jan) results, misses on revs; co announces CEO (8.08 )

Reports Q3 (Jan) loss of $0.45 per share, may not be comparable to the First Call consensus of ($0.22); revenues rose 16.9% year/year to $269.7 mln vs the $288.5 mln consensus. Co announces that Jim Perry, a seasoned gaming industry executive, will become the co’s CEO on March 10, replacing Bernard Goldstein in that position.
08:12 TRMP Trump Entertainment reports Q4 (Dec) results, revs in-line (3.70 )

Reports Q4 (Dec) loss of $5.89 per share, may not be comparable to the First Call consensus of ($0.40); revenues fell 6.4% year/year to $228.6 mln vs the $229.2 mln consensus. “The majority of the Company’s loss from continuing operations during the quarter and year ended December 31, 2007 is attributable to (i) non-cash charges of $238.7 million in goodwill and other asset impairment charges and $4.1 million relating to the refinancing of the Company’s credit facility, and (ii) the decrease in net revenues attributable to a decrease in gaming revenues of $18.6 million and $57.6 million for the quarter and year ended December 31, 2007, respectively.”
08:12 HOKU HOKU Scientific and Solar-Fabrik subsidiary amend polysilicon supply agreement (9.36 )

cO announces an amendment to its polysilicon supply agreement with Global Expertise Wafer Division, a wholly owned subsidiary of Solar-Fabrik AG to extend the date for Hoku to complete the financing for its planned polysilicon plant. Under the terms of the amendment, Hoku or Global Expertise Wafer Division may terminate the supply agreement if Hoku has not secured financing for its polysilicon plant by May 31, 2008, which is a two-month extension from the previous deadline of March 31, 2008.
08:11 CXR Cox Radio reports Q4 (Dec) results, beats on revs; co announces share repurchase program (11.17 )

Reports Q4 (Dec) loss of $0.57 per share, includes charges, may not be comparable to the First Call consensus of $0.19; revenues rose 1.2% year/year to $114.3 mln vs the $111.6 mln consensus. On 03/03, co’s Board of Directors authorized a third $100 mln share repurchase program.
08:11 JCG J. Crew: Oppenheimer would be buyers of JCG ahead of 3/11 earnings report (41.87 ) -Update-

Oppenheimer notes that JCG reports 4Q EPS on 3/11. The firm’s 4Q est is $0.39, in line with the Street and vs. guidance of $0.37-$0.39. Despite the difficult economic environment, they expect mgmt to reiterate its 20% EPS growth target. The firm is buyers ahead of 4Q, as they think the stock works near term in light of 1) their view that meeting expectations will get rewarded; 2) comp compares are easier in 4Q vs. 3Q, leaving room for upside; 3) they expect that inventories ended 4Q well controlled; and 4) short interest is 25% of the float.
08:09 SKS Saks misses by $0.01, reports revs in-line (15.49 )

Reports Q4 (Jan) earnings of $0.19 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.20; revenues rose 4.7% year/year to $999.7 mln vs the $993.6 mln consensus. Co sees Y08 comparable store sales growth in the mid-single digits, with the assumption of low-to-mid single digit comparable store sales growth in the first half of the year and mid-single digit comparable store sales growth in the second half of the year. Comparable store sales assumptions for much of the store base are relatively conservative
08:08 DHR DHR reaffirms Q1 EPS to $0.84-0.89, ex $0.05 charge, vs $0.88 First Call consensus (74.46 )

08:07 PAY Verifone: Hang Seng Bank selects VeriFone contactless solutions (19.12 )

08:07 BLL Ball Corp wins $42 mln U.S. Air Force laser research contract (43.66 )

Co announces it has been awarded a $42 mln indefinite delivery/indefinite quantity research and development contract to conduct laser effects research for the Air Force Research Laboratory . The contract will support the AFRL’s Directed Energy Directorate located at New Mexico’s Kirtland Air Force Base.
08:06 CRMH CRM Holdings reports EPS of $0.30 vs $0.26 in yr ago period; reports revs up 59% yr/yr to $42.2 mln with no estimates (6.30 )

Co sees Y08 EPS of $1.00-1.15.
08:04 RMG RiskMetrics: Hearing initiated with a Neutral at tier 1 firm (21.43 ) -Update-

08:04 LCC US Airways reports February traffic, RPMs up 2.9% from February 2007 (12.61 )

Co reported February and year-to-date 2008 traffic results. Revenue passenger miles for the month were 4.5 billion, up 2.9% from February 2007. Capacity was 5.8 billion available seat miles, up 2.2% from February 2007. Passenger load factor for the month of February was 77.2%, up 0.5 points versus February 2007.
08:04 CXR prelim ($0.57) may not compare to $0.19 First Call consensus; revs $114.3 mln vs $111.59 mln First Call consensus

08:03 TRMP prelim ($5.89), may not be comparable vs ($0.40) First Call consensus; revs $228.6 mln vs $229.24 mln First Call consensus

08:03 ISLE prelim ($0.45) may not compare to ($0.22) First Call consensus; revs $269.7 mln vs $288.50 mln First Call consensus

08:02 SKS Saks reports Feb same store sales +3.4% vs -0.3% Briefing.com consensus (15.49 )

08:02 ALK Alaska Air reports February traffic (24.11 )

The co reports February passenger traffic for its subsidiaries, Alaska Airlines (Alaska) and Horizon Air (Horizon). Alaska’s February traffic increased 13.5% to 1.419 bln revenue passenger miles (RPMs) from 1.250 billion flown a year earlier. Capacity during February was 1.935 bln available seat miles (ASMs), 9.4% higher than the 1.769 bln in February 2007. The passenger load factor (the percentage of available seats occupied by fare-paying passengers) for the month was 73.3%, compared to 70.7% in February 2007. The airline carried 1,287,400 passengers, compared to 1,197,800 in February 2007… Horizon’s February traffic increased 4.7% to 211.8 mln RPMs from 202.2 mln flown a year earlier. Capacity during February was 297.7 million ASMs, 1.3% higher than the 293.9 mln in February 2007. The passenger load factor for the month was 71.1%, compared to 68.8% in February 2007. The airline carried 606,100 passengers, compared to 513,000 in February 2007.
08:02 PPC Pilgrim’s Pride announces Clinton Rivers elected as President and CEO effective immediatly (22.81 )

08:01 SFD Smithfield Foods confirms plans to sell beef processing and cattle feeding operations to JBS S.A. (27.88 ) -Update-

Co announces that it has signed a definitive agreement to sell Smithfield Beef Group its beef processing and cattle feeding operation, to JBS S.A. for $565.0 mln in cash. The sale to JBS will include 100% of Five Rivers Ranch Cattle Feeding, which is currently held by Smithfield Beef in a 50/50 joint venture with Continental Grain Company. SFD and C.G.C. have agreed that, immediately before closing of the J.B.S. transaction, Smithfield Beef will acquire from C.G.C. the 50% of Five Rivers that it does not presently own in return for 2.167 mln shares of Smithfield common stock. The proceeds from the sale of Smithfield Beef’s live cattle inventories, together with Smithfield’s 50% interest in Five Rivers’ cattle inventory, net of associated debt, are expected to be in excess of $200 mln.
08:01 PFE Pfizer reaffirms 2008 guidance (22.24 )

Co is reaffirming 2008 EPS of $2.35-2.45 vs. $2.37 consensus; reaffirms 2008 revs of $47-49 bln vs. $48.1 bln. Co is accelerating pipeline with sharpened focus on key disease areas. Co says phase III pipeline expected to grow to 24-28 programs by end of 2009, up from 16 today. Co is seizing opportunities for global growth by optimizing patent protected portfolio, and expanding in emerging and established markets through innovative commercial models. Co is also continuing to create a lower, more flexible cost base.
08:01 S&P futures vs fair value: +8.0. Nasdaq futures vs fair value: +12.5.

Futures indicate a higher start. Costco (COST), BJ Wholesale (BJ), and Big Lots (BIG) all reported earnings results that either met or beat earnings expectations. Continued talk regarding a bailout for Ambac (ABK) flutters across the wires. CNBC reports a deal could be finished today. Additionally, Fannie Mae (FNM) was upgraded by Morgan Stanley to Equal Weight from Underweight. Due at 8:15 AM ET is the February ADP Employment report.
08:00 SKS prelim $0.19 vs $0.20 First Call consensus; revs $999.7 mln vs $993.61 mln First Call consensus

08:00 OMTR Omniture and Baidu.com announce strategic alliance (21.37 )

OMTR and Baidu.com (BIDU) announce a strategic alliance designed to give online marketers direct access to one of the largest online markets in the world. As marketers incorporate China into their online search campaigns, Omniture and Baidu.com will be ready with the technology integration to manage the metrics from those campaigns.
08:00 Merriman not concerned about “pole taxes”

Merriman says n recent weeks a number of states have followed Texas’ lead by proposing legislation to add a $1.00-5.00 surcharge to the admission fee charged by strip clubs, which would be used to fund a number of causes (including rape counseling, low income health care, and extra spending money for senior citizens). Following Texas’ proposal for a $5.00 surcharge, they have seen proposals for $1.00 in FL, $1.00-2.00 in IL, and $5.00 in PA. In this weak consumer spending environment, firm believes a number of investors have viewed these proposals as something that could potentially hurt strip club admissions and revs. However, firm believes this is unlikely, especially considering the fairly small amounts being proposed. Firm also believes this actually could be an earnings boost. (RICK, VCGH).
08:00 CYD China Yuchai’s subsidiary wins major contract for Beijing Olympics (9.52 )

Co announced that its subsidiary, Guangxi Yuchai Machinery Company Limited, has won a major contract in Beijing. In the recent third round of the Beijing municipal bus National IV standard open bid program, despite intense competition, Yuchai was awarded the contract to install its diesel engines for all 866 buses.
07:59 RMG RiskMetrics initiated with a Buy at Citigroup; tgt $28 (21.43 )

Citigroup initiates RMG with a Buy and $28 tgt, based on their view that RMG’s shares are likely to appreciate as the company grows its FCF stream. (RMG was also initiated with a Neutral at BofA and with an Outperform at Credit Suisse this morning — see 7:20 comment for details)
07:56 NTII Neurobiological Tech: 2008 research and development day clarifies underappreciated potential of Viprinex – Merriman (2.56 )

Merriman says at NTII’s 2008 Research and Development Day, NTII reviewed the data from NTII’s retrospective analysis of the Viprinex A-20, STAT and ESTAT trials first disclosed in its S-1 and S-1/A regulatory filings in mid-August 2007. As they reviewed in extensive detail in their Nov 26, 2007 report, “$60 mln Capital Infusion Clears the Way for the Completion of Viprinex Phase 3 Trials”, these data create a compelling argument as to why NTII’s Viprinex may provide new hope for the more than 96% of acute ischemic stroke victims that currently go untreated, resulting in a substantial commercial opportunity.
07:56 ECONX Reminder: February ADP Employment data due out in about 19 min at 8:15ET

07:56 WDC Western Digital downgraded to Neutral from Buy at FTN Midwest (31.81 )

07:55 BLTI Biolase Technology upgraded to Buy from Neutral at FTN Midwest (3.73 )

07:54 China’s Premier Wen cites inflation, overheating as key risks – Bloomberg.com

Bloomberg.com reports China’s Premier Wen Jiabao said the govt must do more to rein in lending and curb inflation in the world’s fastest-growing major economy, a sign the central bank may raise interest rates for the seventh time in a year. “Financial controls need to be strengthened, and the excessively fast growth in money supply and lending should be curbed,” Wen told almost 3,000 lawmakers in his two-hour report to the National People’s Congress in Beijing… Wen set an 8% growth target for 2008, in line with the nation’s five-year plan. Rising global “uncertainties” include the U.S. subprime crisis, the weak dollar, and high oil and grain prices, the premier said. Liu Mingkang, chairman of the China Banking Regulatory Commission, and Vice Commerce Minister Wei Jianguo expressed concern on the outlook for China’s exports. The economy expanded 11.4% in 2007, the fastest pace in 13 years, and accounted for 20% of global growth, according to an Intl Monetary Fund estimate… China will maintain a “tight” monetary policy, use reserve requirements and bill sales to soak up cash, make “appropriate use” of interest rates, and increase the yuan’s flexibility, Wen said.
07:53 ENER Energy Conversion: Solar PV poroduction improvements continue; phase change memory picking up steam – Merriman (27.26 )

Merriman says under the leadership of Energy Conversion’s new CEO, Mark Morelli, they believe the co continues to demonstrate a rapid march toward sustained profitability. Morelli has quickly instilled a culture of accountability at the firm which is beginning to pay dividends. In addition to significant sequential solar PV rev thus far in FY08, the co has booked orders for 100% of its production capacity for FY08, 80% of FY09’s capacity and 25% of production for FY10.
07:53 IDSY I.D. Systems downgraded to Neutral from Outperform at Cowen (7.02 )

07:52 ABK AMBAC Fincl: CNBC commentator says consortium of banks was still working on bailout deal last night at 10:00 pm, working to finish deal today (10.72 )

Notes that C and BCS are leading the talks.
07:51 GASS Stealthgas announces accretive 10-vessel acquisition; secures fleet growth – Cantor (15.56 )

Cantor says GASS announced it had agreed to acquire 10 LPG vessels for an aggregate cost of $204 mln. Five of the vessels are newbuilds with a Japanese shipyard and are expected to be delivered to the co between Sept 2010 and Dec 2011. They consist of three, 5,000 cbm and two 7,500 cbm fully pressurized LPG ships.
07:50 SCANX Early pre-market gappers

Gapping up: PANC +29.0%, CSIQ +10.6%, BIG +9.4%, SCON +7.7%, CAP +6.5%, SMTC +6.2%, PCOP +4.9%, ABK +3.7%, SOLF +3.0%, DIET +2.6%, UBS +2.4%, SPWR +1.8%, BSC +1.7%, JBL +1.3%, ELN +1.3%, C +1.3%, HPQ +1.1%… Gapping down: PDLI -24.1%, AMSWA -18.2%, IDSY -8.8%, KONG -6.7%, FTEK -5.5%, HLYS -5.2%, KCP -4.6%, WCI -4.2%, RGC -2.7%, CLMS -2.5%, HCN -1.4%, MAT -1.1%.
07:50 California sells $1.75 bln uninsured debt – FT

FT reports California, the largest borrower in the US municipal bond mkt, on Tuesday forged ahead with plans to issue debt without paying for bond insurance, completing a $1.75 bln bond issue sold largely to retail investors. “In the current market, and given the condition of the bond insurers, it’s a waste of taxpayers’ money to buy the insurance,” said Tom Dresslar, a spokesman for the California State Treasurer’s office. “Until the market assigns value to the insurance, we’re just not going to buy it and we are not unique in making this decision.”… Retail investors, unperturbed by the decision to sell uninsured debt on Tuesday, bought more than 68 per cent of the issue, as more than 4,000 investors were enticed by the highest municipal yields in more than three years. The state paid interest rates of 5.625% for 28-year bonds, compared with 4.43% on the 30-year Treasury bond. Municipal bonds normally yield less than Treasury bonds, because munis are tax-free investments. Mr Dresslar said in the current environment, however, buying insurance would not have lowered the state’s borrowing costs.
07:47 AAPL Apple expected to announce a corporate strategy for the iPhone on March 6 – Business Week (124.62 )

Business Week reports on Mar. 6, at its Cupertino (Calif.) campus, the co is expected to announce a strategy to use its Web-browsing iPhone to move into the corporate mkt. Apple will likely unveil plans to spur development of more software for the phone, to improve security on the device, and to make it compatible with popular e-mail systems such as Microsoft’s (MSFT) ubiquitous Outlook. Such steps may make corporations more willing to approve the iPhone for use by their employees. The moves will put Apple into direct competition with Research In Motion (RIMM), whose BlackBerry devices now dominate the wireless e-mail market… But Jobs will face a world of new challenges. Apple needs to build up credibility with corporate buyers after years of largely ignoring them. Apple may have to change its business model to cater to their needs, and it’ll have to be more open with partners, so independent software developers can create applications for the iPhone that corporations want
07:46 SLM SLM Corp: Friedman Billings believes lender-of-last-resort program allows SLM to provide necessary origination and outsourcing serving capabilities (19.30 )

Friedman Billings says that under the lender-of-last-resort program, firm believes that SLM’s scale allows it to act as one of the few cos able to provide the necessary origination and outsourcing serving capabilities to the guarantee agencies participating in the program. Firm ests that SLM’s incremental origination and servicing costs for federal loan operations to be roughly 20 bps, far lower than any competitor. Therefore SLM would generate higher profits than exist today for the first year. Firm believes that this could potentially shift SLM from a lending business to a lower-risk servicing business. Firm believes that 1) the servicing economics could be much more profitable than originating new FFELP loans, and 2) this would engrain the co deeper into school relationships and the FFELP market longer-term.
07:41 JTX Jackson Hewitt: Hearing upgraded to neutral from sell at tier 1 firm (13.68 )

07:40 BSC Bear Stearns: CITIC confirms talks to reopen Bear Stearns deal – Reuters.com (77.17 )

Reuters.com reports CITIC Securities, China’s top brokerage by assets, is in talks to get a bigger stake in BSC to reflect a drop in the share price of the Wall Street bank since the two firms agreed to swap stakes last October, a CITIC executive said. Kong Dan, chairman of parent group CITIC Group, told reporters that the talks would push ahead quickly. He gave no further details.
07:39 LCAPA Liberty Media Capital downgraded to Equal Weight from Overweight at Morgan Stanley (17.46 )

07:38 CNO Conseco: Oversold after 4Q preannouncement – FBR (10.49 )

Friedman Billings says on March 4 CNO preannounced estimated 4Q07 operating EPS of $0.13, an estimated realized loss of $25 mln, and unresolved accounting issues. Firm believes that the 9.9% sell-off in response to this was overdone. While the preannouncement could likely have been communicated better, firm believes the issues brought up do not materially change the story for CNO.
07:37 IPCM IPC The Hospitalist initiated with an Outperform at Wachovia (20.26 )

07:36 BA Boeing: Air Force agrees to brief Boeing on tanker loss – Reuters.com (79.82 )

Reuters.com reports Under mounting pressure from lawmakers and a top Pentagon leader, the Air Force on Tuesday agreed to speed up a briefing with BA about why it lost a $35 billion aircraft contract to NOC and EADS. Sen. Patty Murray and Rep. Norman Dicks, both Democrats from Washington state, said the meeting would now be slated for Thursday, and would help Boeing decide whether to protest the contract award, which has sparked a political firestorm. Pentagon acquisition chief John Young defended the contract award, saying the Air Force followed the rules carefully and there was no obvious reason for a protest in this case. He said an independent Pentagon team of civilian and military experts also tracked every step of the process, just to be sure.
07:36 CHS Chico’s FAS reports Feb same store sales -14.9% vs -12.8% Briefing.com consensus (9.87 )

07:35 BWS Brown Shoe beats by $0.02, misses on revs; guides FY09 EPS below consensus, revs in-line (15.05 )

Reports Q4 (Jan) earnings of $0.39 per share, excluding charges, $0.02 better than the First Call consensus of $0.37; revenues fell 10.6% year/year to $571.4 mln vs the $594.7 mln consensus. Co issues mixed guidance for FY09, sees EPS of $1.52-1.62 vs. $1.72 consensus; sees FY09 revs of $2.50-2.55 mln vs. $2.53 bln consensus. Fourth quarter 2007 net earnings include charges related to the Company’s Earnings Enhancement Plan of $0.06 per diluted share.
07:35 CQB Chiquita Brands: Africa, a geopolitical diversification opportunity – Morgan Joseph (20.55 )

Morgan Joseph says CQB’s latest strategic partnership (with African export companies ESCOM in Angola and Matanuska Africa Limited in Mozambique) permits it to export bananas to the EU from these countries, which notably, are currently treated favorably under the EU tariff regime. Overall, they believe the African partnership serves as great stepping stone toward mitigating the negative impact of the current tariff on CQBs operations and additionally, lessens sourcing risk by further diversifying operations. Given that the percentage of non-tariffed exports is expected to rise to approx one-fourth of total European volumes once the African JVs are up and running, they expect the partnership could provide incremental rev and profit streams of up to $0.46/share annually to CQB over the long-term.
07:35 Most Americans won’t abandon homes, Paulson says – Reuters

Reuters reports the vast majority of the 8.8 mln Americans with no equity or negative equity in their homes will not walk away from their properties, U.S. Treasury Secretary Henry Paulson said on Tuesday. Paulson told National Public Radio’s Marketplace program in an interview that he was encouraging lenders to write down principal on some mortgages where appropriate, but it was not time for the govt to launch a broad mortgage bailout with taxpayer money. For homeowners who walk away from their mortgage obligations, “the taxpayer should not be paying for your losses any more than they should have been paying for the losses of the day trader who speculated in technology stocks in 2000,” Paulson said in a transcript made available by Marketplace.
07:35 CHS Chico’s FAS beats by $0.03, misses on revs (9.87 )

Reports Q4 (Jan) loss of $0.12 per share, $0.03 better than the First Call consensus of ($0.15); revenues fell 7.9% year/year to $409.3 mln vs the $415.1 mln consensus. “We are currently forecasting negative comparable store sales for the first half of 2008, and expect to have lower earnings than the first half of 2007. Our current expectations are to return to positive comparable store sales increases in the second half of 2008 resulting in overall earnings growth during this time frame. We have also significantly lowered our capital expenditure plans for 2008. Our total capital expenditure plan for 2008 ranges from approximately $120-$125 million compared to approximately $202 million of capital expenditures in 2007. We have pulled back our real estate growth targets for 2008 and 2009, and we do not intend to increase the number of new stores beyond current commitments until we see improvements in the economy and our own performance.”
07:33 BWS sees Q1 $0.07-0.11 vs $0.21 First Call consensus; sees revs $575-585 mln vs $596.54 mln First Call consensus

07:32 BWS sees FY09 $1.52-1.62 vs $1.72 First Call consensus; sees revs $2.50-2.55 mln vs $2.53 bln First Call consensus

07:32 OPEC keeps oil output steady in face of $100 oil – Reuters.com

Reuters.com reports OPEC ministers agreed to keep output steady and said record high prices had been driven by factors that were beyond their control. U.S. crude hit a record of $103.95 a barrel on Monday and was trading above $100 on Wednesday… After less than two hours of talks, OPEC delegates told Reuters the group had reached agreement to keep supplies steady. The ministerial meeting continued discussing other matters after the decision had been reached.
07:31 MPG Maguire Properties continuing review of its strategic alternatives for achieving stockholder value (57.32 )

Co announces that it is continuing its review of strategic alternatives for achieving greater value for stockholders, including possible sale of the company. In light of the continuing review, the company’s Board of Directors, acting on the recommendation of the Special Committee, has determined that the 2008 Annual Meeting of Stockholders will be held no earlier than August 1, 2008.
07:31 BWS prelim $0.39 ex items vs $0.37 First Call consensus; revs $571.4 mln vs $594.67 mln First Call consensus

07:31 CMI Cummins announces Pat Ward, currently Vice President and Engine Business Controller, will become the Chief Financial Officer effective May 1 (48.91 )

07:31 Automotive: February sales down as expected – Calyon

Calyon says light vehicles sales for the month of Feb declined 7% YoY to 15.38 mln on a seasonally adjusted annualized basis, from the SAAR of 16.56 mln in Feb 2007. Total unit sales were down 6.3% YoY, largely in line with expectations. Compared with the Jan 2008 SAAR, Feb results improved. Firm says that should the U.S. continue to experience increasing fuel prices, as is widely expected, they expect the trend of slower Large Pick-Up sales and higher Lower Small sales to continue. Although this is not a larger new trend, they see every possibility that it could accelerate as gasoline prices increase in advance of the summer driving season. Firm believes it is also likely that any recovery in the Large Pick-Up segment will coincide with the positive effects of fiscal and monetary stimulus, as well as the introduction of the new Ford F-Series and Dodge Ram light duty pickup trucks in the fourth quarter.
07:31 CHINA CDC Games and Mgame Resolve Dispute; CDC to have exclusive distribution rights to Yulgang in China until March 2010 (3.55 )

The co and Mgame announce a comprehensive settlement of their legal disputes and the end of all outstanding litigation between the two companies. The two companies reached an amicable resolution which calls for CDC Games to have exclusive distribution rights to Yulgang in China until March 2010 with an option to extend for an additional year. The companies also agreed to work together to launch the Version 2.0 upgrade to Yulgang as soon as possible.
07:30 PCOP Pharmacopeia collaboration with Celgene Corporation advances compound into Phase 1 clinical development (3.64 -0.02)

Co announces that Celgene (CELG) has initiated a Phase 1 clinical study of a compound based on its collaboration with PCOP. CELG is solely responsible for the funding and management of development and commercialization of this inflammatory disease candidate. PCOP currently receives an annual license fee from CELG for this program and is eligible to receive milestone payments if the program advances further in clinical trials. PCOP will also receive royalties on sales of any resulting therapeutic products incorporating compounds derived from the program.
07:30 CHS prelim ($0.12) vs ($0.15) First Call consensus; revs $409.3 mln vs $415.08 mln First Call consensus

07:30 ECONX Challenger Job Cuts y/y -14.2% vs 19.1% prior

07:29 MSA Mine Safety upgraded to Outperform at Friedman Billings- tgt $50 (39.79 )

Friedman Billings upgrades MSA to Outperform from Market Perform and raises their tgt to $50 from $47 saying the co’s 4Q07 earnings miss was primarily the result of one-time charges and timing issues associated with the spending of 2007 Assistance to Firefighter Grants, which should reverse in 1H08. In addition to higher-margin AFG revenues in 1H08, MSA continues to grow its international revenue and has several large military opportunities, in both the hard and soft body armor markets.
07:28 AVAN Avant Immun initiated with a Buy at Brean Murray- tgt $2 (0.72 )

Brean Murray initiates AVAN with a Buy and a $2 tgt saying they believe that the merger of AVANT and Celldex Therapeutics represents the combining of two companies with complementary capabilities, which will form a new entity that is significantly undervalued at present and has the necessary resources already in place to develop its clinical programs. The firm views AVANT’s lead clinical development program, CDX-110, an immunotherapy targeting EGFRvIII in glioblastoma multiforme patients, as a potential breakthrough in a difficult-to-treat and underserved disease market where many companies have failed to successfully develop an effective therapy.
07:27 GILD Gilead Sciences: ACTG 5202 trial details positive for Truvada – FBR (49.32 )

Friedman Billings says additional results from the ACTG 5202 study were released. According to ACTG’s letter to participants, “abacavir/lamivudine containing regimens were not as effective in controlling the virus as tenofovir/emtricitabine containing regimens.” This shows that it was not just a tolerability difference as firm heard from some investors, but an actual efficacy difference. Firm believes Epzicom’s weakness in this trial was getting these high-viral-load patients down to the controlled level. Maybe this is how the guidance should change: Truvada preferred for high-viral load, and Truvada and Epzicom both preferred for lower viral load. Firm recently raised their Truvada sales ests both in the U.S. and Europe by roughly 7% and 10% and think there could be upside if Epzicom is downgraded from its current preferred status.
07:26 IDSY I.D. Systems: 4Q07 results in-line; improved visibility leads to FY08 guidance – Merriman (7.02 )

Merriman is reiterating their Buy rating on IDSY shares given that it is currently trading close to its net cash balance of $5.90/share and based on expectations of continued growth with the U.S. Postal Service (USPS) and Wal-Mart (WMT). During the conf call, mgmt indicated that it had received a contract extension with the USPS until the end of 1Q08, at which point it expects to sign a permanent multi-year contract renewal. The co also anticipates to gain traction with the government and in international markets and potentially recognize rev from the car rental market during FY08 (which is not included in guidance).
07:25 MBRK MiddleBrook Pharma: Exploring strategic opportunities – Merriman (4.20 )

Merriman says MBRK reported FY07 earnings yesterday. They note the co recently received approval in Jan 2008 by the FDA for its lead antibiotic, Amoxicillin PULSYS (MOXATAG) for Pharyngitis/ Tonsillitis in adolescents and adults. The co is currently focusing on the exploration of strategic alternatives, including the possible sale of the entire co. Firm reiterates their Buy rating, and believes that MBRK’s current share price does not adequately account for the value of the Amoxicillin PULSYS product. Co announced the engagement of Morgan Stanley as an advisor to pursue strategic alternatives, including potential partnerships, mergers, the sale of individual product lines, and/or the possible sale of the co.
07:24 ENDP Endo Pharm tgt increased to $42 at Broadpoint Capital (27.04 )

Broadpoint Capital says ENDP announced that it had acquired the commercialization rights to Voltaren gel. As a result of the transaction, firm is lowering their 2008 earnings per share ests to $2.02 from $2.13 but increasing their 2009 earnings per share to $2.68 from $2.47. Firm also increased their tgt to $42 from $40. For 2008-2010 firm est that rev from the sale of Voltaren gel will be $40 mln, $120 mln, and $280 mln, respectively.
07:23 TRLG True Religion profiled in New America section of IBD (19.45 )

IBD reports in the past couple of years, the co has expanded into nondenim items like pricey T-shirts and sweat shirts. It has also branched out with licensed products such as swimwear and handbags. But the big push has been its move into retail with its own branded stores. The stores showcase the breadth of its product line and serve as a way to build its brand image. It also has a wholesale business that sells its products in high-end department stores and boutiques in 50 countries around the world, including the U.S., Japan, Korea, France and Italy… “They said they haven’t seen any slowdown from consumer issues,” said analyst Jeff Mintz of Wedbush Morgan Securities. “I think they had some good new denim products for the fall with a lot of new styles, such as one where the logo was painted on the back pocket. That worked well for the holiday. That helped in a bad consumer environment.” Operating margins for its stores are about 35% vs. the high 20% range for the rest of its business, he says. So as it opens more stores, it not only gets more sales, it also gets good margins compared with the rest of its business, he adds… Analysts polled by Thomson Financial forecast that 2007 earnings rose 14% to $1.28 a share. They expect another 18% jump in 2008.
07:23 FRX Forest Labs: Linaclotide data solid at higher doses; modeling $500 mln in sales potential – FBR (39.52 )

Friedman Billings says last night FRX and partner Microbia announced top-line results from two linaclotide Phase IIb studies. In the C.C. study, linaclotide showed statistically significant improvements in weekly frequency of spontaneous bowel movements relative to placebo at all doses except the 75 mcg dose. In the IBS-C study, linaclotide showed statistically significant improvements in weekly frequency of complete SBM’s (CSBM’s) relative to placebo at all doses except the 150 mcg dose. FRX and Microbia are planning to move linaclotide into a Phase III program in 2H08, which is in keeping with firm’s expectations. Firm continues to model a launch in 2011 (FRX’s FY 2012), which reflects their expectation that long-term safety data will be needed in addition to the shorter-term pivotal trial data to support approval. Firm believes $500 mln in peak sales is realistic.
07:21 FIF Financial Federal: Weakening economy creating credit headwinds – FBR (22.52 )

Friedman Billings reiterates their Underperform and $18 tgt on FIF as signs of expected credit erosion are becoming apparent. While still at comparatively healthy levels, credit deterioration accelerated due to weakness in the construction and transportation lending segments. Given their expectation for continued economic weakness and firm’s belief that they are in the early stages of credit deterioration, firm believes that FIF will need to build its allowance for loan losses to more historically normal levels, with the required level of provision expense negatively impacting earnings.
07:20 CALLS Early Research Calls IV

Downgrades: RBC downgrades DiamondRock (DRH 12.59) to Sector Perform from Outperform… Citigroup downgrades the specialty finance REIT sector as the credit market dislocation seems to be intensifying. Firm downgrades the following stocks to Hold from Buy: iStar (SFI 16.78), Gramercy Capital (GKK 18.26), CapitalSource (CSE 14.83), KKF Financial (KFN 13.97) and NewStar Financial (NEWS 5.58). Firm downgrades the following stocks to Sell from Hold: Arbor Realty Trust (ABR 15.19), Newcastle Investment (NCT 9.23) , CBRE Realty Finance (CBF 4.34) and Resource Capital (RSO 7.52). Miscellaneous: BofA initiates RiskMetrics (RMG 21.43) with a Neutral… Credit Suisse initiates IPC The Hospitalist (IPCM 20.26) with an Outperform… Jefferies initiates Microsoft (MSFT 27.59) with a Buy and sets a $33 tgt, as they are encouraged by their stake-in-the-ground bid for Yahoo and believe that it, along with a more conciliatory tone towards regulators, signals a shift in strategy – from defense to offense – while the Vista and Server ’08 product cycles should tide over investors until online services can start to generate meaningful upside… Credit Suisse adds IntercontinentalExchange (ICE 135.37) to their U.S Focus List… RBC initiates XOMA (xOMA 2.61) with an Outperform… Wachovia initiates Embarq (EQ 42.30) and Windstream (WIN 12.01) with a Market Perform… Credit Suisse initiates RiskMetrics (RMG 21.43) with an Outperform… Friedman Billings removes UCBH Holdings (UCBH 10.73) from thier Top Picks list but reits their Outperform and cuts their tgt to $13 from $18 due to the co’srategic advantages over the majority of banking franchises.
07:19 BJ BJ’s Wholesale reports Feb same store sales +5.9% vs +4.0% Briefing.com consensus (33.28 )

07:15 BMY Bristol-Myers elects Jean-Marc Huet Senior Vice President and Chief Financial Officer (22.14 )

Co announces its Board has elected Jean-Marc Huet senior vice president and CFO, effective March 31, 2008. Andrew Bonfield, executive vice president and CFO, will remain in that role until Huet’s arrival. He will leave the company after a period of transition to seek new career opportunities.
07:14 AMSWA American Software reports Q3 EPS of $0.08, ex-items, vs $0.12 single estimate; reports revs up 3% yr/yr to $22.1 mln vs $24.7 mln single estimate (8.79 )

07:13 IPAS iPass: Shamrock Activist Value Fund amends 13D filing; designates one to replace designee director (2.68 )

Earlier this morning, in filing, Shamrock states “On March 4, 2008, the Shamrock Activist Value Fund sent a letter to the Board of Directors of the Company notifying the Board of the Shamrock Activist Value Fund’s decision to designate Mr. Stanley P. Gold to replace Mr. Peter Clapman as one of its two director designees to the Board pursuant to its February 20, 2007 Agreement with the Company. Mr. Gold is the President and Chief Executive Officer of Shamrock Holdings Inc., the private investment firm for the Roy E. Disney family, and Shamrock Capital Advisors, Inc., the investment manager for the Shamrock Activist Value Fund.”
07:13 Auction-rate bond failures approach 70%, show no sign of easing – Bloomberg.com

Bloomberg.com reports auction-rate bond failures show no sign of abating after investors abandoned the market for variable-rate municipal securities. Almost 70% of the periodic auctions in the $330 billion market failed this week as investment banks stopped buying the securities investors didn’t want. Yields on the debt averaged 6.52% as of 2/28, up from 3.63% before demand evaporated in January. States from New York to California and lawmakers including House Financial Services Committee Chairman Barney Frank are attempting to revive the market. Rising yields are pinching state and local governments just as a slowing economy and falling property values slash tax revenue by more than $6.6 billion. “Even if the auction-rate market survives, we’re not going to see the kind of rates we’re used to.”
07:12 PRM Primedia reports Q4 EPS of $0.10 vs $0.09 single estimate; reports revs up 3% yr/yr to $79.1 mln vs $82.4 mln single estimate (7.82 )

07:11 FTEK Fuel-Tech beats by $0.04, beats on revs; guides FY08 revs below consensus (19.57 )

Reports Q4 (Dec) earnings of $0.21 per share, $0.04 better than the First Call consensus of $0.17; revenues rose 80.1% year/year to $32.6 mln vs the $28 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $88-93 mln vs. $108.51 mln consensus.
07:09 CSIQ Canadian Solar beats by $0.02, beats on revs; guides Q1 revs above consensus; reaffirms FY08 revs guidance (18.99 )

Reports Q4 (Dec) earnings of $0.20 per share, $0.02 better than the First Call consensus of $0.18; revenues rose 422.5% year/year to $127.5 mln vs the $120.5 mln consensus. Co issues upside guidance for Q1, sees Q1 revs of $150-155 mln vs. $138.73 mln consensus; co sees shipments of approx 40 MW. Co reaffirms guidance for FY08, sees FY08 revs of $650-750 vs. $711.05 mln consensus; co reaffirms shipments of 200-220MW of regular solar modules.
07:08 CALLS Early Research Calls III

Upgrades: Deutsche Bank upgrades Pioneer Drilling (PDC 13.57) to Buy from Hold. Downgrades: Citigroup downgrades CRH Plc (CRH 37.40) to Hold from Buy… J.P Morgan downgrades Whirlpool (WHR 87.87) to Underweight from Neutral… Jefferies downgrades Thornburg Mortgage (TMA 3.56) to Hold from Buy and lowers their tgt to $3.75 from $14, following the co’s announcement of $570 mln of margin calls on their repo funded MBS portfolio and believe TMA may be forced to sell assets and realize losses thus impairing book value in the process… Friedman Billings downgrades Tessera Tech (TSRA 14.07) to Market Perform from Outperform and cuts their tgt to $16 from $46 noting the stock is down 65% in just a few weeks and, to that extent, their downgrade is not a reflection of further downside risk. The firm says it is due to a lack of conviction that there could be any closure on the patent reexamination “events” anytime soon; AMKR is into arbitration and has significantly enhanced its position, which could help it avoid paying millions in back-payment royalties; and recent anecdotal data points from the likes of OVTI, suggesting that prior expectations for the revenue contribution from the consumer optics could prove to be overly aggressive.
07:07 RHB RehabCare misses by $0.01, reports revs in-line (19.60 )

Reports Q4 (Dec) earnings of $0.24 per share, excluding $0.05 in self insurance expenses, $0.01 worse than the First Call consensus of $0.25; revenues fell 4.7% year/year to $173.6 mln vs the $172.8 mln consensus. Co sees Y08 strong consolidated net earnings growth, but expects its quarterly consolidated operating earnings to be uneven with all quarters impacted by hospital start-up/ramp-up costs. Additionally, while the co expects to achieve operational improvements in Q1, these results will be dampened by the resumption of the normalized run rate costs associated with management incentive plans, health insurance, professional liability and workers compensation.
07:06 FTEK Fuel-Tech awarded $6.7 mln in new orders; Includes NOxOUT ULTRA contract in China (19.57 )

Co announces it was awarded numerous orders totaling $6.7 mln. Principal among these was a NOxOUT ULTRA contract in China, calling for the installation of multiple NOxOUT ULTRA systems in support of large coal-fired electric generating units to be retrofitted with selective catalytic reduction systems for NOx control. The NOxOUT ULTRA systems will be installed during a multi-year period, beginning in 2008 and ending in 2011.
07:04 BJ BJ’s Wholesale beats by $0.06, misses on revs (33.28 )

Reports Q4 (Jan) earnings of $0.80 per share, $0.06 better than the First Call consensus of $0.74; revenues rose 1.9% year/year to $2.43 bln vs the $2.46 bln consensus.
07:04 FMCN Focus Media sppoints Dr. Tan Zhi as Chief Executive Officer (47.75 )

07:04 WIRES On The Wires

Clear Channel Outdoor Holdings (CCO) announces Los Angeles Times Media Group, will promote its portfolio of products via Clear Channel Outdoor’s digital billboard network… T-3 Energy Services (TTES) announces effective March 3, 2008 it has entered into a Know-How License and Technical Services Agreement with Aswan International Engineering Company, who is a member of the Al Shirawi Group of Companies.
07:03 IMCL Imclone: Phase I/II studies of IMC-A12 in pediatric cancer patients commence enrollment (45.42 )

Co announces that the initial stage of a series of Phase I/II clinical trials of IMC-A12, its anti-insulin-like growth factor-1 receptor (IGF-1R) monoclonal antibody, in children with relapsed or refractory solid malignancies, has commenced patient enrollment. These pediatric trials of IMC-A12 are being carried out by the Children’s Oncology Group, an international research group that consists of more than 240 centers that treat children and adolescents with cancer in the United States, Canada, and other countries.
07:03 BJ prelim $0.80 vs $0.74 First Call consensus; revs $2.43 bln vs $2.46 bln First Call consensus

07:02 FTEK sees FY08 revs $88-93 mln vs $108.51 mln First Call consensus

07:02 LOCM Local.com announces record organic traffic; received over 5.7 million organic monthly unique visitors in February (3.93 -0.07)

Co announces record organic search traffic for February 2008. The Local.com site and network received over 5.7 million organic monthly unique visitors in February, which represented 37% of the co’s total traffic for the month. This is an increase of approximately 700,000 MUVs over January’s 5 million MUVs, which represented 32% of the co’s total traffic.
07:01 FTEK prelim $0.21 vs $0.17 First Call consensus; revs $32.6 mln vs $28.04 mln First Call consensus

07:01 RHB prelim $0.29 vs $0.25 First Call consensus; revs $173.6 mln vs $172.80 mln First Call consensus

07:00 CSIQ sees FY08 revs $650-750 mln vs $711.05 mln First Call consensus

07:00 CSIQ prelim $0.20 vs $0.18 First Call consensus; revs $127.5 mln vs $120.47 mln First Call consensus

07:00 ECONX MBA Mortgage Applications 3.0% vs -19.2% Prior

06:47 XL XL Capital: Moody’s reviews XL Capital Assurance and SCA rating for possible downgrade (34.66 )

Moody’s has placed the A3 insurance financial strength ratings of the operating subsidiaries of Security Capital Assurance (SCA), including XL Capital Assurance, XL Capital Assurance Limited and XL Financial Assurance on review for possible downgrade. Moody’s is also reviewing for possible downgrade the debt ratings of the holding company, Security Capital Assurance Ltd (senior debt at Baa3), and a related financing trust. This rating action was prompted by SCA’s recent SEC filing which stated that the company was delaying the filing of its 2007 Form 10-K and that the company’s independent auditor is evaluating the need to include a going concern explanatory paragraph in its audit opinion with respect to SCA’s audited financial statements for the year ended December 31, 2007.
06:45 CALLS Early Research Calls II

Downgrades: Oppenheimer downgrades EXFO Electro-Optical Engineering (EXFO 4.23) to Perform from Outperform, as limited visibility and ongoing currency risk keep them on the sidelines… Oppenheimer downgrades Oplink Communications (OPLK 12.88) to Perform from Outperform, as they believe shares will be relatively range bound until the ulitimate margin structure and growth profile of the co become clear… Lehman downgrades PDL BioPharma (PDLI 16.03) to Equal weight from Overweight and lowers their tgt to $13 from $21, following the decision to no longer pursue the sale of the co and to instead refocus efforts on internal development of antibodies for cancer and immunology… JP Morgan downgrades Xinhua Finance Media (XFML 3.73) to Neutral from Overweight… Jefferies downgrades CompuCredit (CCRT 9.95) to Hold from Buy and lowers their tgt to $10 from $13, in light of deteriorating credit and an uncertain funding environment… Merrill Lynch downgrades Bank of Montreal (BMO 46.92) to Sell from Neutral. Miscellaneous: Credit Suisse initiates Elan (ELN 21.23) with an Outperform… Citigroup initiates Logitech (LOGI 24.69) with a Buy… Credit Suisse initiates Monsanto (MON 111.72) with a Neutral… Credit Suisse initiates Du Pont (DD 46.43) with an Outperform… Credit Suisse initiates Syngenta (SYT 56.83) with an Outperform… Friedman Billings adds The Great Atlantic & Pacific Tea Co (GAP 26.49) to their Top Picks list as recent weakness has been unfounded and the current level represents an extremely attractive entry point.
06:39 CALLS Early Research Calls I

Upgrades: Oppenheimer upgrades Optium (OPTM 6.05) to Outperform from Perform and sets a $10 tgt, as they believe 2008 will be a very strong year for the co based on improving demand for 10 Gbps and emerging ROADM and 40 Gbps product cycles… Merrill Lynch upgrades Jabil Circuit (JBL 12.63) to Neutral from Sell… Wachovia upgrads Legg Mason (LM 64.72) to Market Perform from Underperform, based on valuation, a positive view of the CEO change, reduced Citigroup ownership and value management that is more attractive given the depressed state of so many sectors… Deutsche Bank upgrades PepsiAmericas (PAS 25.19) to Buy from Hold and maintains their $32 tgt, as they beleive recent share weakness is unwarranted in light of solid management, 9% 5-year OCF growth and attractive opportunities in Europe… JP Morgan upgrades Red Robin (RRGB 34.02) to Overweight from Neutral… Bear Stearns upgrades Panacos Pharma (PANC 0.69) to Outperform from Peer Perform… Oppenheimer upgrades Obagi Medical Products (OMPI 10.11) to Outperform from Perform and sets a $15 tgt, based on valuation following Q407 results that missed consensus estimates and a lower FY08 forecast… Credit Suisse upgrades Plains Exploration & Production (PXP 53.83) to Outperform from Neutral… Jefferies upgrades Omniture (OMTR 21.37) to Buy from Hold and maintains their $27 tgt, based on valuation and an upbeat presentation at the co’s Analyst Day… Morgan Stanley upgrades Fannie Mae (FNM 25.95) to Equal-weight from Underweight.
06:35 Asian stocks mostly lower on US recession worries; India’s Sensex ends up 202 points

Reuters reports Asian stocks ended mostly lower Wednesday as investors grappled with fears that the US is headed for a recession with Japan slipping after weaker-than-expected capital spending data reinforced concerns about a global economic slowdown. Hong Kong’s Hang Seng index surrendered early gains as investors worry that China will continue to implement tightening measures to curb inflation and slow economic growth. China’s Premier Wen Jiabao said the nation’s economy will likely expand 8% this year, slower than last year’s 11.4% growth, the highest in 13 years. Inflation is expected to average at 4.8%, unchanged from the previous year. Wen also said China is facing considerable inflationary pressures. China’s Shanghai Composite ended down 0.99% at 4,292.65, and in Hong Kong the Hang Seng fell 5.53 points to 23,114.34. Japan’s Nikkei index closed down 0.2% at 12,972.06 following data showing that the combined capital investment of Japanese non-financial companies fell 7.7% in Q407, the biggest fall since July-September 2002. India’s Sensex opened marginally lower at 16,329 – down 11 points – and slipped to a low of 16,253. Nervousness in early trades saw the index swing in and out of the positive zone. The index, thereafter, moved steadily amid intra-day bouts of profit-taking. Technology and metal stocks led the upmove. India’s Sensex touched a high of 16,596, and finally settled with a gain of 202 points (1.2%) at 16,542. In the process, the index ended its four-day losing streak wherein it had shed 1,486 points. (Reuters, Business Standard)
06:31 MIM MI Developments reports Q4 FFO of $0.84 vs $0.77 consensus; reports revs up 10% yr/yr to $51.4 mln with no estimates (23.46 )

06:29 KTII K-Tron International reports Q4 EPS of $2.18 vs $1.57 in yr ago period; reports revs up 33% yr/yr to $59.1 mln with no estimates (115.88 )

06:16 S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +3.3.
06:16 European Markets

FTSE…5792.40…+24.70…+0.4%. DAX…6625.18…+80.14…+1.2%.
06:16 Asian Markets

Nikkei…12972.06…-20.22…-0.2%. Hang Seng…23114.34…-5.53…-0.0%.
06:05 WIRES On The Wires -Update-

ICA Fluor, the industrial engineering and construction subsidiary of Fluor (FLR) and Empresas ICA, S.A.B. de C.V. (ICA), announce that it has been awarded a $100 mln contract with Energia Costa Azul, S. de R.L. de C.V, a subsidiary of Sempra LNG, for the construction of a nitrogen injection plant and a power generation facility. The project will be located within the Energia Costa Azul liquefied natural gas regasification terminal north of Ensenada, Baja California, Mexico.
06:04 T AT&T confirms it will invest $1 bln in global network and services for multinational customers in 2008 (34.87 ) -Update-

Co announces plans to invest $1 bln in 2008 to continue the expansion of their network and portfolio of solutions for multinational companies with operations and applications. The 2008 program — which is 33% more than last year’s enterprise investment and more than double AT&T’s investment in 2006 — is being driven by demand for Internet Protocol networks and services as companies deal with the increase in data, voice and video traffic made possible by the proliferation of high speed networks and devices worldwide.
06:00 BIG Big Lots beats by $0.09, reports revs in-line; guides Q1 EPS above consensus; guides FY09 EPS above consensus (17.38 )

Reports Q4 (Jan) earnings of $0.93 per share, excluding non-recurring items, $0.09 better than the First Call consensus of $0.84; revenues fell 99.1% year/year to $1.41 bln vs the $1.41 bln consensus. Co issues upside guidance for Q1, sees EPS of $0.30-0.35, excluding non-recurring items, vs. $0.26 consensus. Co issues upside guidance for FY09, sees EPS of $1.70-1.80, excluding non-recurring items, vs. $1.53 consensus.
05:52 NYT New York Times could have debt rating reduced – NY Post (18.41 )

The NY Post reports The New York Times (NYT) may have its Baa1 debt rating reduced by Moody’s Investors Service. The review affects about $1 bln of debt and was sparked by ad sales declines in December and January, coupled with a weak near-term outlook, Moody’s said.
05:41 T AT&T to invest $1 bln worldwide for expansion – Reuters (34.87 )

Reuters reports AT&T (T) will invest $1 bln worldwide this year to expand networks and its services in key markets, the co said on Wednesday. The amount does not include AT&T’s investment in the U.S., Greg Brutus, a spokesman for AT&AT Asia Pacific region, told reporters in Indian capital. He said the investment would mainly be to build sub-sea optical fiber cable in Asia and for an Ethernet network in Europe and Asia.
05:38 C Citigroup’s prospects look dim to investors – WSJ (22.10 )

The Wall Street Journal reports Citigroup (C) chief executive Vikram Pandit and other senior executives are confident with the co’s capital levels and aren’t looking to raise additional money from outside investors, according to people familiar with the matter. “We are well capitalized,” Mr. Pandit said last night on a conference call with senior Citigroup managers, according to people who were on the call. Mr. Pandit said capital levels will be bolstered as the bank sheds “legacy assets” such as leveraged loans and subprime mortgages. Indeed, some analysts and investors think the market is being way too pessimistic about Citigroup’s prospects. They point to the huge gains made by investors, including Saudi Prince Alwaleed bin Talal, who bought the bank’s stock in the early 1990s, after it had been beaten down by massive losses in real-estate loans. “We’re in the midst of a panic that is similar to the panic that existed in the early ’90s,” says Richard X. Bove, an analyst at Punk Ziegel who rates Citigroup a Buy. “You won’t find a single human being on the planet to say anything positive about Citigroup, which is why you may want to own it,” Mr. Bove says.
05:32 SFD Smithfield Foods to sell beef business for $565 mln- WSJ (27.88 )

The Wall Street Journal reports Brazilian meatpacking co JBS SA plans to acquire two more beef businesses and combine the U.S.’s third-, fourth- and fifth-largest meatpackers into the nation’s largest beef processor, people familiar with the matter say. JBS, which purchased Colorado-based Swift & Co. last year, is in advanced talks to buy Smithfield Food’s (SFD) beef business for $565 mln, excluding live-cattle inventories, which are expected to be sold separately for more than $200 mln, these people say. Smithfield is the country’s largest pork producer in terms of revenue, and it ranks fifth in beef.
05:29 YHOO Yahoo steps up talks with Time Warner – WSJ (28.06 )

The Wall Street Journal reports Yahoo (YHOO) and Time Warner (TWX) have stepped up talks over creating an alternative to Microsoft’s (MSFT) unsolicited offer for Yahoo, people familiar with the matter said. The talks center on a deal that would fold Time Warner’s AOL Internet unit into Yahoo, these people said, though they still consider a Yahoo purchase by Microsoft as the most likely outcome. The Time Warner talks have stepped up as Yahoo tries to nail down its alternatives to Microsoft’s Feb. 1 offer, which Yahoo rejected as undervaluing it. The scenario under discussion would involve folding AOL into Yahoo with Time Warner taking a sizable minority stake in the combined entity, say the people familiar with the matter. They say that Yahoo and Time Warner had an earlier round of discussions, but talks intensified recently after Yahoo went back to Time Warner to ask for a proposal that it could take to Yahoo directors. Time Warner is putting the finishing touches on that proposal now. The people familiar with the matter say that the companies estimate about $1 bln in cost savings annually. The discussions, which have included contact between Time Warner Chief Executive Jeffrey Bewkes and Yahoo Chief executive Jerry Yang, are driven at least partly by the idea that uniting Yahoo and AOL, including its Advertising.com business, would create an online advertising powerhouse. Outsourcing Yahoo’s search advertising to Google (GOOG), which handles some of AOL’s search advertising and has a minority AOL stake, is not currently part of the discussions, the people familiar with the matter say. News Corp. and Yahoo, which have been discussing a deal whereby News Corp. would gain a stake in Yahoo in exchange for selling it MySpace and some other Web sites, separately continue to talk about a possible deal, according to people familiar with the matter. These people say such discussions are already advanced, but still considered less likely than a Microsoft purchase of Yahoo.
05:25 Clinton wins Ohio and Texas; McCain clinches nomination – WSJ

The Wall Street Journal reports Sen. Hillary Clinton broke her losing streak and revived her presidential hopes with crucial victories in Ohio and Texas, the states she had vowed would launch her comeback. But Sen. Barack Obama did well enough in yesterday’s four Democratic primaries to keep a significant lead in convention delegates. The rivals split the other two states that held contests, with Sen. Obama winning big in Vermont and Sen. Clinton in Rhode Island. On the Republican side, Sen. John McCain sealed his party’s nomination for president with wins in all four states. Sen. McCain, the presumed nominee for weeks, officially vanquished his last remaining rival of the many who began the race last year, Mike Huckabee. The Arizonan’s wins yesterday gave him more than the 1,191 delegates he needs for the nomination at his party’s convention in September.
05:23 Early Newspaper Headlines: YHOO/TWX – SFD – C – T – NYX

WSJ: Clinton wins Ohio and Texas; McCain clinches nomination… Yahoo (YHOO) steps up talks with Time Warner (TWX)… Smithfield Foods to sell beef business for $565 mln (SFD)… Citigroup (C) prospects look dim to investors. Reuters: AT&T (T) to invest $1 bln worldwide for expansion. NY Post: NY Times (NYX) could have debt rating reduced.
05:07 NWPX Northwest Pipe reports Q407 results; EPS in line with expectations (38.67 )

Reports Q4 (Dec) earnings of $0.60, in line with the First Call consensus of $0.60; revenue rose 0.73% year/year to $98.21 mln vs the $94.35 mln consensus.
05:02 NYX NYSE Euronext business summary for Feb 2008 (63.09 )

Co reports transaction volume growth in U.S. and European trading operations in Feb 2008. Cash Equities Volumes: +43% in Europe, +20% in the U.S.; derivatives Volumes: +37% in Europe, +50% in the U.S.; ETFs: +45% in Europe, +70% in the U.S.
03:43 COST Costco reports EPS in-line, misses on revs; reports February same-store sales increased 7.0% (62.39 )

Reports Q2 (Feb) earnings of $0.74 per share, in-line with the First Call consensus of $0.74; revenues rose 12.2% year/year to $16.62 bln vs the $16.85 bln consensus. Co reports net sales of $5.11 bln for the four weeks ended March 2, 2008, an increase of 11% from $4.59 bln in the same four-week period of the prior fiscal year. February same-store sales increased 7.0%.
03:34 AMGN EU Commission approves updated prescribing information for Aranesp (45.64 )

Co announces that the European Commission reached its final decision to amend the prescribing information for Aranesp based on the positive opinion from the European Committee for Medicinal Products for Human Use in January 2008. The CHMP granted positive opinions for all centrally-authorized Erythropoiesis Stimulating Agents in the European Union, each of which will receive European Commission Decisions. The European Commission’s decision announced today is consistent with that described in Amgen’s press release on Sept. 28, 2007 and the European Medicines Agency’s announcement on Oct. 23, 2007.
02:06 WIRES On The Wires -Update-

Sanofi-Aventis (SNY) and Bristol-Myers Squibb (BMY) announce that the Committee for Medicinal Products for Human Use of the European Medicines Evaluation Agency has issued a positive opinion recommending approval of the 300mg tablet of the antiplatelet Plavix… CNinsure (CISG) announces the acquisitions of majority interests of Shenzhen Huameng Insurance Brokerage Co., Ltd. and Fuzhou Guoxin Insurance Agency Co., Ltd.
00:51 Comverge and EnerNOC mentioned positively in Weekday Trader – Barron’s Online

Barron’s Online reports the pullbacks in Comverge (COMV) and EnerNOC (ENOC) seem way overdone. “I think the market for [these companies’ products and services] remains very healthy,” says Michael Carboy, an analyst at Signal Hill. “The dramatic negative price we saw reflects investors coming to grips with the fact that these businesses are a little more complicated than what they thought them to be.” Comverge isn’t expected to break even till later this year or early 2009, and EnerNOC is expected to become profitable in 2H of 2009 or 2010. Higher operating costs are raising concerns, but actually bolster the bullish case behind these stocks. Comverge and EnerNOC recognize one-time costs up front when they sign contracts. These are a drag on first-year earnings that are then offset by strong, recurring revenue streams, says Jason Simon, JMP Securities’ clean-technology analyst. Both companies are also rapidly expanding their sales teams to cater to burgeoning demand. But even based on more moderate earnings estimates, analysts expect that Comverge and EnerNOC stocks could each gain 50% over the next 12 months based on triple-digit revenue growth and expanding gross margins. More importantly, these companies are bringing more “megawatts under management” at a fast clip, that is, the number of residential and business customers that are signing up for energy conservation programs.
00:50 ‘Mad Money’ Recap: Lightning Round cont. – TheStreet.com

Cramer was bearish on Diebold (DBD) and Crystallex (KRY).
00:49 ‘Mad Money’ Recap: Lightning Round – TheStreet.com

Cramer was bullish on BE Aerospace (BEAV), Siemens AG (SI), Goldman Sachs (GS), Schlumberger (SLB), Transocean (RIG), Shaw Group (SGR), Mercadolibre (MELI) and Equitable Resources (EQT).
00:49 Cramer’s ‘Mad Money’ Recap – TheStreet.com

On Tuesday’s edition, Jim recommends Western Union (WU) and claims the co is poised to take share from ailing Moneygram (MGI). According to Cramer, Moneygram’s recently announced recapitalization plan is horrible for the co and its shareholders. That leaves Western Union with attractive opportunities as Moneygram restructures. WU trades at just 17x its current earnings, but trades at just over 12x its long-term growth rate.
00:44 WIRES On The Wires

Neonode (NEON) announces the closing of a $4.5 mln private placement to accredited investors, comprised of 1.8 mln shares of Neonode’s common stock at a price of $2.50 per share… Central European Media Enterprises Ltd. (CETV) announces the pricing of its previously announced offering of $425 mln aggregate principal amount of 3.50% senior convertible notes due 2013.
00:43 IGT International Game Technology and Cyberview Technology announce preliminary merger discussions (47.01 )

Co and Cyberview Technology (LSE:CYBV) announce that they are engaged in preliminary discussions regarding IGT’s potential acquisition of Cyberview. The parties have agreed to an exclusive negotiating period. Under the terms being discussed, shareholders, option holders and warrant holders of Cyberview would receive aggregate consideration of up to $70 mln for all of the outstanding equity securities of Cyberview.
00:40 WWIN Waste Industries USA reports Q4 results (36.63 )

Reports Q4 (Dec) earnings of $0.36, includes fee related to proposed going private transaction, $0.04 worse than the First Call consensus of $0.40; revenue rose 4.4% year/year to $84.7 mln vs the $84.63 mln consensus.
00:33 GFA Gafisa SA reports EPS in line, beats on revenue (40.88 )

Reports Q4 (Dec) earnings of R$ 0.49, in line with the First Call consensus of $0.49; revenue increased 56.4% year/year to R$ 372.76 mln vs the R$ 325.05 mln consensus. Co expects the Ebitda margin to be between 16% and 17% for FY08.
00:26 INSU Insituform Tech beats by $0.04, misses on revs (13.56 )

Reports Q4 (Dec) earnings of $0.17 per share, excluding litigation settlement, $0.04 better than the First Call consensus of $0.13; revenues fell 4.0% year/year to $130 mln vs the $138.8 mln consensus.
Tuesday After the Close
19:12 WRAPX After Hours Summary: PDLI -18.6 on earnings/news; ABK +2.6% (says unlikely to announce any capital raising deal Tuesday, according to source — Reuters); PDLI -18.6% (ends sale process for co and restructures to focus on antibody discovery and development); SLM -1.0% (S&P removes SLM rating from credit watch; outlook stable — DJ) -Update-

Companies moving in after hours trading in reaction to earnings: Trading Up: MFB +10.2%; CAP +6.5%; SMTC +6.2%; GOLF +3.1%; DIET +2.6%; SALM +2.4%; KONG +1.5%… Trading Down: PDLI -18.8%; IDSY -8.8%; HLYS -6.1%; KCP -3.2%; RNIN -2.7%; LMAT -1.9%; TUTR -1.5%; NAVI -1.0%… Companies moving in after hours trading in reaction to news: Trading Up: PANC +21.7% (announces discovery of bevirimat patient response predictors; completed phase 2b dose escalation study determines optimal dose range); GRA +13.5% (announces CFO succession plan; Hudson La Force to succeed Robert Tarola); JAV +11.1% (Board appoints Martin Driscoll as Chief Executive Officer); SCON +7.7% (closes on $15.0 mln investment by Hunchun BaoLi Communication); SMTC +6.2% (announces new $50 mln stock buyback plan); DIVX +3.3% (announces stock repurchase program of up to $20 mln of common stock); ABK +2.6% (says unlikely to announce any capital raising deal Tuesday, according to source — Reuters); AVA +1.8% (requests increase in Electric and Natural gas prices in Washington)… Trading Down: PDLI -18.6% (ends sale process for co and restructures to focus on antibody discovery and development); FIX -8.2% (announces it has acquired Merit Mechanical); OSTE -5.7% (signs agreement to distribute Harvest Technologies’ BMAC System); WCI -4.2% (provides preliminary Q4 data); CLMS -2.5% (releases comment on auction rate securities market); COWN -1.5% (Kim Fennebresque, Chairman and Chief Executive Officer retires); HSWI -1.3% (announces it has closed two separate previously announced transactions for $16.56 in additional equity financing); ARB -1.2% (Chairman and Chief Executive Officer adopts 10b5-1 trading plan); AWBC -1.1% (director establishes 10b5-1 stock sale plan); SLM -1.0% (S&P removes SLM rating from credit watch; outlook stable — DJ); SE -1.0% (enters into agreement to take Spectra Energy Income Fund private at CDN $11.25 per unit in cash; co expect it to be accretive to SE’s 2009 EPS by $0.01); MAT -1.0% (to issue $350 mln of senior notes).