Trading for the Masses

It must have been the sandwich I had @ 11:30 that took this market for another 30 pt ride. I mean all said today, we had over 90 spoo pts traded from open, to high, to low, to high. At the end of the day no new highs or lows were made in the spoos. Tomorrow the Fed. Options expire Thursday. Out of here early. Erin Go Bragh!!!

For all of us Irish out there, Happy St. Patty’s Day

This market rallied right from the open to a lower high, and did not make a lower low off the open, so we continue locked in a range market. This market right in the middle of nowhere as we wait for the FED and their 100 pt cut tomorrow. Should get slow.

Market theme song du jour from Aimee Mann.

Lots of deflation on the open this am, but once again, we have yet to close under the January Lows, it will shake out todayone way or another. BSC woth 2 bucks, LEH< GS< MER and all public banks but JPM are getting squashed. There is no where to hide if you are long any assets off the open. The “news” has been out for 15-16 hours already so the damage may already be done. Watch your pivots and trade accordingly.

over 1281 you have to be long up to that point you should be short, the 1258 area on spoos remains the line in the sand.

08:20 Semiconductor: Data points from the Valley; SNDK, AAPL, SPSN, ACTS, TSC - Lazard

Lazard says that their channel checks indicate that AAPL is currently in price talks with Samsung about putting in NAND orders for April. Firm sees this as a positive sign for the NAND industry as AAPL has not been in the market for NAND throughout Q1. Firm believes the result of this action will be that Samsung will firm up NAND pricing. In conclusion: Firm believes this is positive for SNDK, as the stock tends to trade with the direction of NAND flash pricing; they would be buyers of the stock at these levels. Firm says that the MP3 market will remain fairly sluggish into the June quarter. data point is relevant for companies such as ACTS, AAPL, and SNDK
08:20 LUV Southwest Air rethinks plane retirement, shelves outsource plan - WSJ (11.64 )

WSJ reports the co is reconsidering some of its operating plans in the wake of maintenance lapses, from the pace of retiring old jetliners to outsourcing maintenance overseas. Speeding up jetliner retirement could reduce costs under some circumstances, Southwest CEO Gary Kelly suggested last week, as the airline beefs up its effort to upgrade jets. The carrier is pursuing major structural upgrades to dozens of its oldest Boeing 737 jets in an effort partly aimed at reducing long-term maintenance expenses. But in response to the recent furor over missed structural checks last year on some four dozen older aircraft, Southwest has pledged to enhance its internal controls and likely will beef up its compliance staff. Together, those initiatives could end up increasing costs at an airline reliant on keeping them low to generate profit.
08:19 LEH Lehman Brothers says liquidity position strong - Bloomberg (39.26 ) -Update-

LEH comments in e-mailed statement; says its liquidity continues to be very strong, liquidity framework is competitive advantage - Bloomberg
08:18 Two projects in default dog big home builders - WSJ

WSJ reports Two massive housing developments in Las Vegas, involving several of the nation’s largest home builders, have received default notices on about $765 mln in debt, according to one of the partners in the projects. John Ritter, chief executive of Las Vegas-based Focus Property Group, says that two joint ventures — involving Focus as well as builders TOL, KBH and LEN among others — have each missed an interest payment in recent weeks and are in negotiations with lenders… The default notices renew concerns about the risks that joint ventures pose to home builders… Mr. Ritter says the struggling Las Vegas developments, called Inspirada and Kyle Canyon Gateway, have failed to meet the sales pace that the lenders expected. The projects’ partners “are going back to the banks to say that the deals were structured based on former market conditions,” Mr. Ritter said in an interview. “There are certain builders that can’t live up to their obligations.”… Mr. Ritter says the ventures are negotiating with principal lenders, JPM and WB, trying to restructure the loan terms.
08:18 HWCC Houston Wire & Cable reports EPS in-line, revs in-line (14.44 )

Reports Q4 (Dec) earnings of $0.33 per share, in-line with the First Call consensus of $0.33; revenues rose 7.6% year/year to $89.2 mln vs the $90 mln consensus.
08:15 WIRES On The Wires

Incyte Corporation (INCY) will discuss its decision at Cowen and Company Health Care Conference to not initiate the two six-month Phase IIb trials for its lead CCR5 antagonist, INCB9471, in treatment-experienced HIV patients. Incyte is actively seeking to out license the program… Environmental Tectonics’ (ETC) Simulation Division announces the signing of a contract with the New York City Office of Emergency Management to deliver a multi-station ADMS-COMMAND… Abraxis BioScience (ABII) announces that its partner, Taiho Pharmaceutical, has filed a Japanese New Drug Application with the Ministry of Health, Labour and Welfare in Japan to market ABRAXANE for Injectable Suspension for the treatment of breast cancer… Alimera Sciences and pSivida (PSDV) announce that they have amended their license and collaboration agreement relating to Medidur FA, the companies’ Phase III investigative treatment for diabetic macular edema, and other Medidur products.
08:15 ECONX Reminder: NY Empire State Index data due out in about 15 min at 8:30ET

08:15 CCL Carnival tgt cut to $50; 1Q08 preview; 2H08 outlook should dictate share movement - Stifel (37.85 )

Stifel says CCL is scheduled to report its 1Q08 results on Thursday. Firm is lowering ther FY08 and FY09 EPS ests from $3.21 and $3.53 to $2.95 and $3.35, respectively, mostly to account for escalating oil prices. Consensus 2008 and 2009 EPS ests are currently $3.17 and $3.44. Firm would advise investors to ignore EPS in the near term due to the volatility of energy and FX prices embedded, and solely focus on yields as it is a better indicator of industry fundamentals. Firm’s FY08 fuel assumption is now close to $525 (+45% y/y) per metric ton, well above mgmt’s guidance ($484), but prudent at this time until fuel uncertainty starts to diminish. Firm cuts tgt to $50 from $58.
08:11 Analyst comments on the financial sector following news that BSC would be bought by JPM for $2 per share

Several analysts are out with comments on the financial sector following news that BSC would be bought by JPM for $2 per share… Oppenheimer notes the BSC buyout by JPM for $2 a share represents a mere 2% of the stated book value at the end of the fourth quarter. While they believe BSC’s case is unique, what will not be unique is a resulting major negative revaluation of financials. Firm says that on the basis of book value, most banks do not appear expensive as they trade near price to book multiples of the 1990-1991 credit cycle. However on the basis of tangible book value, banks look expensive and are trading well above tangible book value. As they believe they will begin to see goodwill writedowns during the first half of this year, they believe investors will focus more on tangible book value and stocks will quickly revalue to far lower levels… Lehman says what the valuation JPM paid says for the valuation of financial assets in general could be disconcerting to bank stock investors, although they note BSC was under considerable liquidity strain over the past week. While the concurrent Fed actions of a 25bp cut in the discount rate (lowering the spread to Fed Funds to 25bps) and the expansion of the program are pluses, they may not be enough to stem current investor concerns with respect to bank stocks… Citibank notes that part of what enables a lack of confidence situation to develop is a lack of scale and lack of diversity in business mix. They think MER, MS, GS, & LEH all are larger and more diverse; therefore a crisis of confidence situation is a dramatically lower probability… Additionally, UBS downgraded LEH, GS, STT, IVZ, and AMTD saying most capital markets related stocks are likely to move lower before recovering and valuations will likely test 20-year lows rather than 10-year lows.
08:09 OCLS Oculus Innovative Sciences announces ‘positive’ results from three abstracts evaluating the use of Microcyn technology in diabetic foot ulcers (4.68 )

Co announces that three abstracts, which relate to the safety and efficacy of Microcyn Technology in the treatment of diabetic foot ulcers, were peer reviewed and presented at DFCon 08 this past week in Hollywood, California.
08:06 JPM JP Morgan Chase: Strong balance sheet pays dividends with acquisition of BSC - Citigroup (36.54 ) -Update-

Citigroup says that even with an estimated $6 bln of transaction costs, the deal economics look very compelling and from a strategic perspective JPM is getting several business lines from Bear that are very complementary to its Investment Bank. A key part of the deal is a $30 bln lending facility with the Fed to help finance the most illiquid assets on BSC’s balance sheet (this means that JP Morgan’s liquidity position is not diluted).
08:05 GLW Corning: Refuge in time of uncertainty - Lehman (23.29 )

Lehman recommends owning GLW into earnings as firm looks for another beat and raise and also views as core longterm holding. This said, firm does recognize concerns regarding macro environment that will likely cap upside over the medium term. Based on thei recent checks in Asia and discussions at DisplaySearch LCD conf, they highlight that panel utilization rates are holding steady to increasing coupled with added capacity that will likely drive better than seasonal +4-10% panel area growth in Q2. Firm raises their volume ests for Q2 led by earlier seasonal trends; Q2 core +6% (old +3%) and SCP +8% (old +3%). Firm raises their 2Q08 EPS raised to $0.45 (old $0.44, cons $0.42). CY08 raised to $1.83 (old $1.80, cons $1.71).
08:05 IFSIA Interface downgraded to Hold at Stifel (15.47 )

Stifel downgrades IFSIA to Hold from Buy based on a U.S. recession will clearly impact the office market and other key segments of Interface’s business. The firm says the financial institutions alone probably accounted for close to 10% of Interface’s domestic revenues in 2007 and that has to weaken substantially this year and next. Firm notes western Europe is showing signs of strain, particularly in the key markets like London.
08:05 DOW Dow Chemical tgt cut to $47 at Lehman (36.99 )

Lehman cuts their tgt on Lehman to $47 from $55 to reflect the decline in valuation multiple in market indexes and the peer group, as well as firm’s lower ‘08E EPS of $3.37, down from $3.51. While they expect near-term business conditions to be more challenging for DOW and other chemical cos, firm continues to expect DOW to advance its previously announced transformation in 2008. In addition, DOW stock is also supported by one of the highest and most secure dividends in the chemical sector, with a current yield of nearly 4.6%, 110 bps above the 10-year treasury bond.
08:04 DD DuPont: Lowering ests on economic uncertainty; tgt cut to $45 - Lehman (46.98 )

Lehman is cutting their tgt to $45 from $52. In addition firm has reduced their ‘08E EPS from $3.52 to $3.38 given the economic uncertainty and recent energy and raw material inflation. Firm expects DD stock to continue to be supported by its strong dividend yield of 3.5%.
08:04 VRX Valeant Pharmaceuticals reports “encouraging phase IIb results” at treatment week 12 for Taribavirin (12.88 )

The co reports results at the treatment week 12 analysis point for the Phase IIb clinical trial for its antiviral compound, taribavirin, a prodrug of ribavirin in development for the treatment of chronic hepatitis C in conjunction with a pegylated interferon… The 12-week early viral response data from the Phase IIb study showed comparable reductions in viral load for weight-based doses of taribavirin and ribavirin. The anemia rate was statistically significantly lower for patients receiving taribavirin in the 20mg/kg and 25mg/kg arms versus the ribavirin control arm… In the study, the following percentages of patients completed 12 weeks of treatment in the taribavirin and ribavirin arms: 20mg/kg: 87.0%; 25mg/kg: 80.0%; 30mg/kg: 82.6%; ribavirin 74.3%. The following percentages of patients had adverse events leading to dose modification or interruption of taribavirin or ribavirin: 20mg/kg: 11.9%; 25mg/kg: 15.7%; 30mg/kg: 25.0%; ribavirin 28.6%. In the Intent to Treat Analysis, the Rapid Virological Responses in this study were 20mg/kg: 16.4%; 25mg/kg: 14.3%; 30mg/kg: 16.2 %; ribavirin: 11.4%.
08:04 JPM JP Morgan Chase: S&P affirms JPM ‘AA-’ long- and ‘A-1+’ short-term counterparty credit ratings, outlook is stable (36.54 ) -Update-

S&P affirms ‘AA-’ long- and ‘A-1+’ short-term counterparty credit ratings on JPMorgan. The outlook is stable. “We consider the acquisition of Bear by JPM as positive, as it will permit Bear to meet its obligations through funding sources obtained directly from its new parent.” As part of the transaction, JPM will benefit from nonrecourse financing from the Federal Reserve of up to $30 billion to support Bear’s less liquid assets, in addition to the financing that the Federal Reserve provides through its discount window. “The ratings on JPM reflect our expectation that the bank’s post-acquisition capital and leverage metrics will remain satisfactory. JPMC is acquiring some valuable businesses, such as Bear’s prime brokerage and clearing operations, which we do not expect will add much risk to its balance sheet.”
08:04 EMN Eastman Chem tgt cut to $65 at Lehman (65.55 )

Lehman cut their tgt on EMN to $65 from $69 and their ‘08E EPS of $4.88 (from $4.94). Firm expects n-t business conditions to be more challenging for EMN and other chemical cos as economic uncertainty and relentlessly high energy prices are expected to pressure profitability.
08:03 JPM JP Morgan Chase: Buys BSC for $2 per share - Lehman (36.54 ) -Update-

Lehman says Sunday night JPM announced the purchase of BSC for $270 mln or $2/shr (2% of what BSC was worth 3 weeks ago, 0.02x book). Firm surmises BSC felt intense pressure to find a buyer quickly amid a crisis of confidence, and JPM was best positioned to act, allowing it to win favorable pricing. JPM expects BSC to add $1 bln to earnings when fully integrated, which could take 12- 18 months ($0.29/pro forma shrs). JPM is also guaranteeing BSC’s counterparty risk. Bottom line, given the pricing of JPM/BSC transaction as well as a special $30 bln Fed lending facility, they believe the purchase of BSC is a plus for JPM as it adds prime brokerage capabilities and scale in other areas.
08:03 NLC Nalco: Reducing ests on high raw mats; tgt to $22 - Lehman (21.20 )

Lehman cuts their tgt to $22 from $28 as firm reflect the decline in valuation multiple in market and peer group and firm’s lower ‘08E EPS of $1.31 (from $1.42). They expect near-term business conditions to be more challenging for NLC and other chemical companies as economic uncertainty along with relentlessly high oil prices are expected to pressure profitability.
08:03 TSS Total System initiated with a Overweight at boutique firm (21.80 )

08:03 SXE Stanley awarded $570 mln contract to continue support of passport program (26.99 )

The co announces that it was awarded a five-year, $570 million contract to continue support of the U.S. Department of State, Bureau of Consular Affairs/Passport Services Directorate. Services include production, operational and business process support training, procurement, administration and evaluation of critical supplies, and facilities management support at the four Passport Centers and 14 Passport Agencies nationwide along with the Headquarters’ support offices.
08:02 ITW Illinois Tool expects Q1 EPS to be at high end of prior guidance, expects Q1 charges (46.75 )

Co expects to announce two special charges in Q1, totaling $0.22 per share: an impairment charge of $90-100 mln related to the co’s industrial software businesses. Separately, an estimated pretax charge of $32 mln will be recorded for European taxes on investment transfers related to legal entity structuring transactions. Absent these two special charges, the co expects Q1 operating results to be at the high end of the previous forecast of $0.72-0.78 and vs First Call consensus of $0.76. Co continues to assume a total company revenue growth range of 8-11%. Co is now forecasting full-year 2008 EPS of $3.25-3.39, it’s not clear if this is comparable to consensus of $3.57. Co does not say if this excludes the special charges. Co continues to assume a total company revenue growth range of 6-10%.
08:02 ACUS Acusphere reports Q4 EPS of ($0.27) vs ($0.29) First Call consensus; revs $.667 mln vs $0.73 mln First Call consensus (0.48 )

08:02 HPOL Harris Interactive upgraded to Overweight at boutique firm (2.48 )

08:02 TRLG True Religion requested an extension from the Nasdaq; ‘07 non-GAAP EPS will be in line with previously issued guidance (18.39 )

Co announced that it has requested an extension from the Nasdaq Listing Qualifications Panel to file by April 30, 2008 its 2007 Form 10-K, September 30, 2007 Form 10-Q and its restated financial reports for the fiscal years ended December 31, 2005 and 2006, including the quarters therein, and the quarters ended March 31, 2007 and June 30, 2007. While the restatements are not yet complete, management expects that the Company’s 2007 results will be in line with its previously issued Non-GAAP earnings per share guidance. On 12/12, co reaffirms guidance for FY07 EPS of $1.24-1.27 vs $1.28 First Call consensus.
08:02 KDE 4 Kids Entertainment reports Q4 (Dec) results, misses on revs (11.08 )

Reports Q4 (Dec) loss of $1.26 per share, includes charges, may not be comparable to the First Call consensus of ($0.12); revenues fell 9.8% year/year to $16.5 mln vs the $22.4 mln consensus.
08:02 HRB H & R Block: Wilbur Ross to acquire Option One’s servicing business for $1.1 bln (17.47 )

Wilbur Ross announces that WL Ross & Co, through its affiliate, AH Mortgage Acquisition, has agreed to acquire from HRB the Option One mortgage servicing business and related advances for approximately $1.1 bln. WL Ross is paying $41 mln for the mortgage servicing rights, $942 mln plus $100 mln of retained receivable for the $1.1 bln of advances and $65 mln for $85 mln of other servicing related assets. The advances are expected to increase to about $1.2B and the increment will be purchased at a 3 percent discount as well. “Notwithstanding the problems of the subprime lending industry, we regard mortgage servicing as an attractive business and believe that there are considerable economies of scale attached to it. We shall therefore continue to seek acquisitions of prime, Alt-A and subprime servicing.”
08:01 S&P futures vs fair value: -24.8. Nasdaq futures vs fair value: -36.0.

Futures suggest a sharply lower start to the trading day on news that Bear Stearns (BSC) is being acquired at only a fraction of Friday’s closing price and on the announcement that the Fed cut the discount rate by 25 basis points over the weekend. JP Morgan Chase (JPM) is buying Bear Stearns for $2 dollars a share, which involves $30 billion in funding from the Federal Reserve. The moves have raised concerns over liquidity and solvency of Wall Street banks.
08:01 GNTA Genta announces that the FDA indicates that Genasense approval in Chronic Lymphocytic Leukemia will require additional confirmatory data (0.46 )

08:01 SPRD Spreadtrum Comms announces a $20 mln ADS buyback (7.19 )

08:01 APWR A-Power Energy enters into an agreement to expand an existing distributed power generation contract from $175 mln to $280 mln (13.15 )

Co announces that it has entered into an agreement with Inner Mongolia Wulahot Hengwang Heat & Electricity Generation to increase the size of its existing contract worth $175 million by ~$105 million to $280 million.
08:00 KDE prelim ($1.26) may not compare to ($0.12) First Call consensus; revs $16.5 mln vs $22.39 mln First Call consensus

07:59 NY Times story discusses Fed’s involvement in BSC deal and liquidity measures

Hoping to avoid a systemic meltdown in financial markets, the Federal Reserve on Sunday approved a $30 billion credit line to engineer the takeover of Bear Stearns and announced an open-ended lending program for the biggest investment firms on Wall Street. In a third move aimed at helping banks and thrifts, the Fed also lowered the rate for borrowing from its so-called discount window by a quarter of a percentage point, to 3.25 percent…. In a highly unusual maneuver, Fed officials said they would secure the loan by effectively taking over the huge Bear Stearns portfolio and exercising control over all major decisions in order to minimize the central bank’s own risk… In a potentially even bigger move, the Federal Reserve also announced its biggest commitment yet to lend money to struggling investment banks. The central bank said its new lending program would make money available to the 20 large investment banks that serve as “primary dealers” and trade Treasury securities directly with the Fed… Much like a $200 billion loan program the Fed announced last Tuesday, this program will essentially allow the government to hold as collateral a wide variety of investments that include hard-to-sell securities backed by mortgages. But Fed officials told reporters on Sunday night that the new program would have no limit on the amount of money that can be borrowed… Fed officials said they would take control of the investment holdings of Bear Stearns in order to maximize their value and minimize disruptions as a result of a cash squeeze. Without providing details, Fed officials insisted that the $30 billion loan was covered by even the most conservative estimates of the Bear Stearns holdings. (See 00:36 and 00:58 stories for original posts on this)
07:55 TKLC TEKELEC authorizes additional share repurchase for up to $50 mln worth of common stock (11.06 )

07:55 UBS UBS: None of operating units up for sale - DJ (27.76 ) -Update-

07:55 Capital Market stocks downgrade details

As mentioned at 6:30 UBS downgraded LEH, GS, STT, IVZ, and AMTD to Neutral from Buy saying while they may be doing this a bit late in the game, the firm thinks it’s tough to justify having Buy recommendations on a capital markets sensitive company in this environment, as they think the odds are pretty high that the liquidity squeeze will get worse before it gets better. The firm says investment banking activity should all but dry up and the weak macro backdrop will cause equity markets to continue their decline and put a damper on client activity. The firm also says most capital markets related stocks are likely to move lower before recovering and valuations will likely test 20-year lows rather than 10-year lows.
07:54 Fed gets serious - FBR

Friedman Billings says the Fed has taken the gloves off. After announcing a series of new programs (and extending credit to Bear Stearns on Friday), last night, the Fed announced what is, in firm’s view, the most significant new initiative to date. The Primary Dealer Credit Facility invokes a little-used (by some accounts, not since the Great Depression) power of the Federal Reserve to lend to non-depositories. Firm says that more than anything else, they believe the motivation for the Fed in establishing the PDCF was to try to avoid another instance of a “run” on a primary dealer. The PDCF will provide the primary dealers with a liquidity escape hatch. This should help a great deal, but firm believes its ultimate success is not guaranteed.
07:53 Overnight dollar LIBOR rises to 3.86% from 3.05%, BBA says - Bloomberg

07:52 Auction-bond failures deplete New Hampshire Universities fund - Bloomberg.com

Bloomberg.com reports the fallout from the collapse of the auction-rate bond market has infected New Hampshire, where the state college and university system was forced to tap its reserves to cover more than $1 mln in extra borrowing costs. “It hurts,” Ken Cody, associate vice chancellor of finance for New Hampshire’s state college and university system, said in a phone interview. “We have very limited resources.” Yields on the system’s bonds rose to as high as 7.8% last month from 3.9% in January after auctions run by Wall Street cos failed, depleting funds for campus maintenance, Cody said. The system converted $84.3 mln of the debt to bonds with fixed payments and plans to bid at an auction of its remaining $63.6 mln of securities this week to reduce rates, he said. New Hampshire is among municipal borrowers that are likely to offer to buy their own securities after the SEC said March 14 that the bids wouldn’t run afoul of laws against market manipulation. Lehman Brothers Holdings, which managed the auctions, prevented the system from bidding last month, Cody said.
07:46 FCFC FirstCity Financial reports Q4 EPS of ($0.12) vs $0.16 single estimate (7.21 )

07:45 BLOG BMC Software to Purchase BladeLogic for $28/share in cash (23.61 )

BMC Software has signed a definitive agreement to purchase BladeLogic (BLOG), a data center automation co, for $28.00 per outstanding share of BladeLogic common stock in cash or approximately $800 mln, net of cash acquired. BMC expects this transaction to significantly accelerate the co’s top-line growth, and from an EPS perspective, BMC expects it to be slightly dilutive to non-GAAP earnings in fiscal year 2009, including the write-down of deferred revenues and one time integration and retention expenses, and accretive to non- GAAP earnings in fiscal year 2010. The acquisition will be conducted by means of a tender offer for all of the outstanding shares of common stock of BladeLogic, followed by a second-step merger.
07:44 HIBB Hibbett Sporting downgraded to Neutral from Buy at Piper Jaffray (14.00 )

07:44 LTS Ladenburg Thalmann Financial reports Q4 EPS of $0.06 vs $0.00 in yr ago period; revs +254% yr/yr to $50.93 mln (1.79 )

07:42 GES Guess: Brean Murray believes 4Q07 results will make it clear that GES remains a retail winner (34.94 )

Brean Murray is maintaining their Buy rating, ests and $57 tgt with GUESS? on tap to report 4Q07 results after the close on Wednesday. Firm has heard almost endless speculation on what is in store for GUESS? in 2008; firm believes the upcoming conference call will help to clear the air and provide further evidence of the strength of GUESS?’s business model, which firm believes has multiple long-term growth drivers which should shine in the coming years. In sum, firm believes, even in this current environment, that GUESS? has the potential to register solid top- and bottom-line growth. As such, they believe the co is well deserving of a premium multiple.
07:39 SCANX Early pre-market gappers

Gapping up: VG +6.6%, TWTI +6.5%, GLD +2.3%, TUP +1.3%… Gapping down: BSC -88.7%, LEH -33.7%, WM -14.6%, MER -12.7%, SI -12.3%, C -11.9%, GS -10.7%, WB -9.5%, UBS -7.4%, MS -6.4%, CVTX -6.3%, AMTD -5.5%, ETFC -5.0%, DB -4.7%, BAC -4.7%, CS -4.6%, ASTI -2.4%.
07:38 CCU Clear Channel: In a press release out Friday night, CCU completed the sale of its Television Group (34.56 )

In a press release out Friday night, the co announced it has completed the sale of its Television Group to Newport Television, for $1.1 bln, subject to certain closing items including proration of expenses and adjustments for working capital.
07:36 PWRD Perfect World profiled in New America section of IBD (25.00 )

IBD reports the co has a lot of games for a co that’s only two years old. Analysts say it can take other game developers that long just to cook up one game, much less five of them. The key is its technology platform Angelica 3D Game Engine, which Perfect World uses as a base for all its games. By not starting from scratch, it can turn out new variations fast and cheap. “It creates a manufacturing flow, like a studio,” said Tian Hou, analyst with Pali Research. “Other companies put millions of dollars into their games, but Perfect World’s (research and development) costs half a million. After they finish, they do the promotion, spending about $1.5 million. They can make it all back in one month of operations.” It helps that China — and increasingly, the rest of the world — seems to have a bottomless appetite for MMOPRGs… Perfect World is still one of the smaller players in the MMOPRG business, but it plans to get bigger soon. The co has five other games in development and three more in the planning stages… Right now, analysts are seeing no letup in Perfect World’s growth. Those polled by Thomson Financial expect profit to rise 78% this year to $1.66 a share, and gain 40% next year to $2.32.
07:34 Brokers plunge in pre~mkt electronic trading

Broker stocks plunge as BSC gets sold at fire sale price leading to fears that balance sheets are more tattered than previously thought: LEH plunges 11 pts to $28.40; MER -5 pts; MS -4 pts; UBS -2 pts; GS -14pts, C falls 1 pt to $18.75… After initially trading higher on news of BSC acquisition, JPM shares now flat.. BSC trading at $3.85 in pre-mkt
07:32 NMX CME Group to acquire NYMEX Holdings on terms previously announced of $36/share and 0.1323 shares of CME (95.34 )

Co and NYMEX Holdings (NMX) confirmed they have signed a definitive agreement under which CME Group will acquire NYMEX Holdings, the parent company of New York Mercantile Exchange on the terms previously announced. Under the terms of the definitive agreement, shareholders of NYMEX will receive total consideration equal to 0.1323 shares of CME Group Class A common stock and $36.00 in cash for each share of NYMEX common stock outstanding, or an aggregate of approximately 12.5 mln shares of CME Group Class A common stock and cash of $3.4 bln.
07:32 MER Merrill Lynch CEO says has tackled biggest problems, according to report - Reuters.com (43.51 )

Reuters.com reports the co has overcome its most serious problems stemming from the global credit crunch but has not eliminated all, its chief executive was quoted as saying. In an interview with Spain’s El Pais newspaper published on Sunday, MER CEO John Thain also reiterated recent comments that Merrill would not need to seek more outside capital to bolster its balance sheet. “Our balance sheet still has some risk positions, so we still haven’t eliminated them completely but none of these positions is of a magnitude that we saw at the end of the last quarter,” Thain said in the March 6 interview… “We have carried out an enormous cleaning of our credit portfolio. We have more capital than we need, so we can say to the market that we don’t need more injections. We can confirm that we have tackled the problem.”… Although difficult to estimate how long the credit crunch would last, Thain said he thought it would continue for “at least” another six to 12 months.
07:32 BBEP Breitburn Energy reports Q4 EPS of ($0.86), includes charges, doesn’t comapre to the vs $0.42 First Call consensus; revs $81.04 mln vs $81.20 mln single estimate (20.23 )

07:31 GTF Cytomedix appoints Martin Rosendale Executive Vice President and Chief Operating Officer (1.54 )

07:31 TPX Tempur-Pedic to amend financial guidance when it reports first quarter results in April; previously announced financial guidance no longer reliable (16.86 )

Co comments on a challenging economic environment and provided a Q1 financial outlook. The company noted that first quarter sales to date in the U.S. have been significantly below the company’s plan as a result of economic factors affecting consumer spending. While the first quarter is not yet complete, the company currently expects Q1 operating expense structure was planned and incurred to support a higher sales level. In addition, sales through the U.S. direct channel, the company’s highest margin channel, have been much weaker than planned, which along with other factors will result in a gross margin rate considerably lower than previously anticipated. Therefore, the company currently expects first quarter earnings per share to be approx half the amount for the first quarter of 2007. The company currently expects to amend financial guidance when it reports first quarter results in April, and its previously announced financial guidance for full year 2008 should no longer be relied upon.
07:31 RFIL RF Industries Ltd. reports Q1 EPS of $0.05 vs $0.01 in yr ago period; reports revs up 21% yr/yr to $3.8 mln with no estimates (5.91 )

07:30 BJS BJ Services upgraded to Buy from Neutral at Merrill (25.23 )

07:30 CFSG China Fire & Sec Grp wins new contracts with Jiuquan Iron & Steel Group totaling $4.3 mln (7.94 )

Co announces that Jiuquan Iron and Steel has notified it that it has won contracts valued at approximately $4.3 mln for three independent projects that will be implemented in the next 12 months.
07:29 Former Fed Greenspan comments on the current financial crisis in the Financial Times

In the FT, Greenspan writes “the pace of liquidation is likely to pick up even more as new-home construction falls further. The level of home prices will probably stabilize as soon as the rate of inventory liquidation reaches its maximum, well before the ultimate elimination of inventory excess. That point, however, is still an indeterminate number of months in the future. The crisis will leave many casualties. Particularly hard hit will be much of today’s financial risk-valuation system, significant parts of which failed under stress. Those of us who look to the self-interest of lending institutions to protect shareholder equity have to be in a state of shocked disbelief. But I hope that one of the casualties will not be reliance on counterparty surveillance, and more generally financial self-regulation, as the fundamental balance mechanism for global finance… We will never be able to anticipate all discontinuities in financial markets. Discontinuities are, of necessity, a surprise. Anticipated events are arbitraged away… it is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: mkt flexibility and open competition.”
07:28 PRICE Filings, Offerings, Pricings and IPOs

Filings: Providence Service (PRSC) files for a $175 mln common stock shelf offering… Titan Intl (TWI) files for a mixed shelf offering… Highwoods Prop (HIW) fiels for a mixed shelf offering… Achillion Pharma (ACHN) files for a $25 mln common stock shelf offering.
07:26 HNR Harvest Natural reports Q4 EPS of $1.78 vs ($0.23) in yr ago period; reports revs of $11.2 mln (12.23 )

07:24 STRL Sterling Construction downgraded to Hold at Morgan Joseph (18.26 )

Morgan Joseph downgrades STRL to Hold from Buy, following Q407 EPS that exceeded firm and consensus estimates on stronger-than-expected gross margins, affirmed ‘08 guidance and believe infrastructure projects have a greater probability of being scaled back or delayed in the near term, which could limit growth into 2009, given economic headwinds, State and Local budget concerns, some accounting issues at the TX Dept. of Transportation and cost inflation.
07:23 Investment co Carlyle Capital files for winding up - Reuters.com

Reuters.com reports Carlyle Capital said on Sunday its shareholders have voted unanimously in favor of a compulsory winding up. The co said it will now start winding up and sell its remaining assets under Guernsey law. Carlyle Capital, an affiliate of U.S.-based buyout firm Carlyle Group, said it has received default notices from its two remaining lenders and believes that its lenders have now taken possession of substantially all of its U.S. govt agency AAA-rated residential mortgage-backed securities. It said it recommended to shareholders to vote in favor of the winding-up after extensive analysis of its prospects.
07:21 CVH Coventry Health Care issues Q1 & FY08 EPS guidnace below prior guidance (42.75 )

Co issues guidance for Q1 (Mar), sees GAAP EPS of $0.81, may not be comparable to $0.87 First Call consensus, prior guidanced $0.85-0.87; sees Q1 (Mar) revs of $3.0 bln vs. $3.03 bln consensus. Co issues guidance for FY09 (Dec), sees GAAP EPS of $4.39-4.50, may not be comparable the $4.53 consensus, prior guidance $4.42-4.58. Co said, “Not withstanding the downward adjustment to our full year EPS range, we are very pleased with the consistent performance and strong, fundamentally sound positioning of our on-going businesses… We continue to feel confident about each of our business lines, the results of our recent acquisitions, the success of our organic growth initiatives and our long term strategic positioning.”
07:19 OTE Hellenic Telecom upgraded to Peer Perform from Underperform at Bear Stearns (14.94 )

07:18 VQ Venoco reports Q4 EPS of ($1.21) may not compare to $0.27 consensus; reports oil and gas sales up 63% yr/yr to $116.5 mln (13.24 )

07:17 IMAX Imax: It’s all about visibility; increasing theater signings and box office rev share driving IMAX toward 2H08 profitability - Merriman (6.62 )

Merriman continues to believe in the long-term prospects for IMAX due to its ability to provide a differentiated viewing experience for consumers. Firm believes that the pending introduction of a digital system plus more joint venture deals could reaccelerate theater growth and profitability — exemplified by the recent 135-theater deals signed with AMC and RACIMEC. They believe that as firm approaches anticipated improved profitability, IMAX’s valuation multiple should also improve. Applying a 9.0-10.0x EBITDA multiple to firm’s FY09 est yields appreciation potential to a range of $9.00-10.00.
07:16 SILC Silicom Limited: Raising ests to reflect Chinese server design wins - Merriman (12.05 )

Merriman is maintaining their Buy rating on SILC shares. As a key component supplier to the WAN Optimization market and broadening its reach into the Commercial Server market, firm believes Silicom is wellpositioned for top-line growth that should drive solid earnings results over the near-term. The co’s line of Bypass cards that enables high availability in WAN optimization products have quickly become an industry standard among vendors such as Cisco, Riverbed and Blue Coat Systems, in their view.
07:15 KIDS BabyUniverse: Lowering ests to account for weak consumer spend - Merriman (4.05 )

Merriman is lowering their ests on KIDS to account for soft retail sales, particularly in the toys category. The co has also been impacted by the Chinese toy backlash and weaker sales at partner sites, particularly Sears (SHLD), which is not in the co’s control. 4Q07 (ended in Feb) results will be reported in April.
07:15 Banking industry needs to raise capital now to help stablize markets - FBR

Friedman Billings says given the current pace of de-leveraging occurring in the financial world, the banking industry needs to raise capital and cut dividends to strengthen balance sheets and slow the pace of de-leveraging. Firm recommends that investors avoid owning the current common equity in most financial institutions, as future capital raises will dilute current common shareholder equity. They recommend that investors wait and buy on the recapitalization of financial stocks. Firm’s analysis indicates that the GSEs need to raise in the neighborhood of $20 bln apiece, and the banking system needs $200 bln to $250 bln to reverse the de-leveraging trends occurring today. Firm’s analysis indicates that the financial system is roughly $1 trln to $1.2 trln under-capitalized, depending on the amount of de-leveraging that has already taken place.
07:14 ATML Atmel: Cutting ests on choppy business trends and rising Euro - FBR (3.47 )

Friedman Billings says recent checks suggest ATML s tracking towards the lower end of its Q1 rev guidance range of down 3% to 7% QoQ, and firm is thus cutting their Q1 rev est to -6% QoQ. Consumer, handset, and PC-related chip shipments are all tracking a bit worse than seasonally typical, while automotive shipments should be about flat (worse than typical), and industrial shipments should grow sequentially. Further, the euro has appreciated to about $1.50 this quarter vs. mgmt’s assumed $1.46, driving about $3.2 mln per quarter of higher expenses ($0.03 annual EPS impact). Firm is lowering their gross margin forecast and raising their opex forecast to account for the rising euro. Firm is also lowering their tgt on the stock to $5, a 1.25x EV/S multiple (2008), lower than their prior 1.5x EV/S multiple.
07:14 CVTX CV Therapeutics: Regadenoson delay does not appear to be a cause for concern - Broadpoint Capital (6.30 )

Broadpoint Capital maintains their Buy rating despite a delay in FDA action on regadenoson, which had a March 14 action deadline. Although postponements often reflect data-related review problems, this one appears likely to be benign and brief. In an 8-K filing, CVTX disclosed that it has had “final labeling discussions” with the FDA, typically the penultimate step before approval. Moreover, the filing pointedly refers to recent warnings by FDA officials that the agency could miss deadlines if lacking sufficient resources to complete reviews in time. Firm consequently believes this to be an “insufficient resource” delay.
07:13 CYPB Cypress Biosci reports Q4 EPS of $0.08 vs ($0.03) in yr ago period; reports revs of $6.1 mln vs $0.9 mln in yr ago period (7.20 )

07:13 BPFH BostonPrivate Fin tgt cut to $17 at Broadpoint Capital; FY08 and FY09 ests cut (13.50 )

Broadpoint Capital cuts their tgt on BPFH to $17 from $21 to reflect reduced EPS expectations and lower industry multiples as the credit cycle deepens, and cutting our FY08 and FY09 EPS estimates by $0.11 and $0.05 to $1.40 and $1.70, respectively, to reflect our expectations for higher provision expense and slower balance sheet growth. We continue to believe fears of a potential credit event at Gibraltar, fueled by a lack of investor confidence in oversight of the subsidiary banks following the First Private credit event, will materially limit share upside until Gibraltar gets the “all clear” from a new team of independent loan review analysts and the regulators later this year.
07:13 EPL Energy Partners: Carlson Capital discloses 9.4% stake in amended 13D filing, up from 6.7% previously on 3/14 (10.71 )

The 13D/A filing was out earlier this morning.
07:12 SCUR Secure Computing: Quantifying potential exposure in patent dispute with Finjan - Lazard (7.01 )

Lazard says on Thursday, a federal jury ruled that Secure Computing had infringed a Finjan patent. Secure plans to appeal the ruling. Assuming the judgment is not overruled, Secure must pay Finjan 16% of past sales on Webwasher Software, 8% of Webwasher Appliance and 8% of CyberGuard TSP rev. If Secure is unsuccessful on appeal, based on firm’s preliminary analysis, they est Secure’s potential exposure at $6-$8 mln ($0.10-$0.13 per share) for past liabilities and the potential for royalty payments of $2-$3 mln ($0.03- $0.05) per year. Secure plans to vigorously defend the position that it has not violated any patents and will continue with its own patent infringement suit against Finjan’s load balancing technology.
07:12 DMX I-TRAX receives tender offer to be acquired for $5.40/share by Walgreen’s (3.90 )

Walgreens (WAG) annnounces it has created a new Walgreens Health and Wellness division. As part of the new division’s strategy, Walgreens also announced plans to acquire two leading operators of worksite health centers, I-trax (DMX) and privately held Whole Health Management… WAG announces it will acquire I-trax in an ~$278 million cash transaction, including the assumption of about $18.3 million in net debt. An affiliate of Walgreens will commence a tender offer within 10 business days for all outstanding common stock of I-trax at $5.40 per share.
07:12 BJGP BMP Sunstone reports Q4 EPS of ($0.21) vs ($0.19) single estimate; reports revs up 27% yr/yr to $9.2 mln vs $9.4 mln single estimate (8.15 )

Co sees Y08 EPS of roughly ($0.07) may not compare to ($0.27) single estimate, with revs of at least $96.0 mln vs $37.6 mln single estimate.
07:09 WIRES On The Wires

Lawson Software (LWSN) announces it has acquired the Product Lifecycle Management software division of San Francisco-based Freeborders. Terms of the deal were not disclosed and the transaction is not anticipated to have a material impact on the co’s fiscal 2008 fourth quarter or fiscal 2009 results… Hillenbrand Industries (HB) announces the early tender results of its previously announced cash tender offer to purchase any and all of its outstanding 4.5% Senior Notes due 2009… Millennium Pharmaceuticals (MLNM) announces the advancement of MLN3126, a new product candidate, from the co’s discovery engine to its development pipeline.
07:06 HOC Holly: Hearing downgraded to Neutral from Buy at tier 1 firm (44.12 )

07:06 MRO Marathon Oil: Hearing downgraded to Neutral from Buy at tier 1 firm (50.67 )

07:06 COP ConocoPhillips: Hearing upgraded to Buy from Neutral at tier 1 firm (77.49 )

07:04 SDTH ShengdaTech reports Q4 EPS of $0.14 vs $0.14 single estimate; revs $28.6 mln vs $27.61 mln single estimate (9.38 )

Co sees FY08 EPS of $0.62-0.65 vs $0.56 single estimate; sees revs $132-134 mln vs $124.29 mln single estimate.
07:01 SEPR Sepracor presents safety data on Omnaris AQ and Omnaris HFA nasal sprays at American Academy of Allergy Asthma and Immunology (17.78 )

Co announces that data from a large-scale Phase II study of ciclesonide HFA metered-dose inhaler, a nasal aerosol formulation, for the treatment of seasonal allergic rhinitis in adult and adolescent patients, were presented at the AAAAI 2008 annual meeting held in Philadelphia, PA. In this study, all doses of ciclesonide HFA met the primary efficacy endpoint and demonstrated a statistically significant reduction in 24-hour total nasal symptom scores versus placebo. The study also met its secondary endpoint of instantaneous TNSS improvement versus placebo. There were no clinically meaningful differences in the incidences of adverse events between each of the ciclesonide HFA treatment groups and placebo.
07:01 GLG GLG Partners appoints Jeffrey Rojek as CFO and Simon White as COO (13.40 )

Co announces that Jeffrey Rojek has been appointed Chief Financial Officer of GLG, effective March 18, 2008. Simon White, the current Chief Financial Officer, will become Chief Operating Officer of GLG on that date.
06:58 Money-market rates rise; Fed signals depth of crisis - Bloomberg.com

Bloomberg.com reports the cost of borrowing euros on money markets rose after the Federal Reserve’s emergency cut in its discount interest rate stoked concern that credit losses are deepening. In its first weekend action in three decades, the Fed cut the rate on direct loans to banks and provided $30 billion to JPMorgan to help the bank finance the purchase of Bear Stearns. Money-market rates are rising as banks hoard cash after at least $195 billion in losses and writedowns since the start of 2007. “Given everything that has happened over the past few days, the market is extremely jittery, with rumors abounding about other banks out there being denied funding.” The euro interbank offered rate, or Euribor, advanced 3 basis points to 4.65%, the highest since Jan. 4.
06:54 CALLS Early Research Calls III

Upgrades: Piper Jaffray upgrades Advanced Analogic (AATI 6.19) to Buy from Neutral… Piper Jaffray upgrades Concur Tech (CNQR 27.97) to Buy from Neutral… Morgan Stanley upgrades Saks (SKS 12.39) to Equal-weight from Underweight. Downgrades: Friedman Billings downgrades Charles Schwab (SCHW 19.79) to Underperform from Market Perform and lowers their tgt to $18 from $20, as they believe, as they remain concerned about the likelihood of a pullback in shares as earnings growth stalsl to less than 11% in ‘09, by their estimate… Friedman Billings downgrades TD AMERITRADE (AMTD 16.50) to Market Perform from Outperform and lowers their tgt to $18 from $21, based on valuation, bearish sentiment among retail investors, reduced trading activity, and the prospects of additional rate cuts that could create a more difficult operating environment. Miscellaneous: Morgan Stanley initiates Longs Drug Stores (LDG 40.34) with an Equal-weight.
06:52 JPM JP Morgan Chase: Moody’s affirms JPM ratings (snr Aa2) after Bear Sterns announcement (36.54 ) -Update-

Moody’s affirmed its rating on JPMorgan Chase (senior at Aa2), and its subsidiaries, including its lead bank, JPMorgan Chase Bank (financial strength at B+, and long-term deposits at Aaa). Moody’s affirmation follows the announcement that JPMorgan will acquire The Bear Stearns Companies (BSC) for ~$272 million in an all-stock transaction.
06:48 ACLS Axcelis Tech Board of Directors determines revised unsolicited proposal by Sumitomo undervalues Axcelis (5.59 )

Co announces that its Board of Directors has unanimously rejected the unsolicited proposal by Sumitomo Heavy Industries and its private equity partner, T.P.G, to acquire all ACLS common stock for $6.00 per share. The Axcelis Board, after carefully evaluating the offer with its financial and legal advisors, determined the proposal undervalues Axcelis and is not in the best interests of Axcelis and its shareholders. Axcelis’ Board is determined to do what is best for the Company and its shareholders and is committed to pursuing all initiatives to achieve this goal and to best position Axcelis to capitalize on its strengths and realize its business potential. “SHI’s $6.00 unsolicited proposal undervalues the Company based on the intrinsic value of the business in light of the Company’s product portfolio and global market reach. The Board of Directors’ decision is supported by extensive valuation analyses and by our trading prices over the last year. Although Axcelis’ recent trading prices, along with others’ in the industry, have been depressed, the Board believes the Company is well positioned for the future and worth more than $6.00 per share.”
06:48 URRE Uranium Resources reports Q4 EPS of ($0.02) vs ($0.05) in yr ago period; reports revs up 183.2% yr/yr to $8.2 mln with no estimates (7.23 )

06:43 CALLS Early Research Calls II

Upgrades: J.P Morgan upgrades Nordic American Tanker (NAT 26.30) to Neutral from Underweight… Jefferies upgrades Ashland (ASH 46.7 to Buy from Hold and raises their tgt to $55 from $48 saying with $15/share in cash on hand, and structural initiatives to help offset (well-known) cyclical headwinds later this year, Ashland shares offer an intriguing risk/reward in the current climate. Downgrades: J.P Morgan downgrades Double Hull Tankers (DHT 10.74) to Underweight from Neutral… Jefferies downgrades Metabolix (MBLX 12.34) to Hold from Buy and cuts their tgt to $14 from $32 saying they believe near-term risks more than offsets Metabolix’s secular tailwinds. Miscellaneous: Baird initiates Bank of Kentucky Financial (BKYF 23.55) with an Outperform and sets a $29 tgt, based on valuation, perceived longer-term earning power that is substantial given potential for operating leverage and perceived scarcity value that is also meaningful with sizable deposit share in Cincinnati MSA… J.P Morgan initiates Capital Product Partners (CPLP 17.79) with an Overweight… UBS initiates Ashford Hospitality (AHT 6.37) with a Buy.
06:43 BSC Bear Stearns: Bush and Treasury Secretary Paulson have signed off on the Bear Stearns deal - CNBC (30.00 ) -Update-

06:37 Japan stocks at 2.5 yr closing low on yen,credit; Sensex down 859pts

Japanese stocks fell nearly 4% to about a 2.5 yr closing low on Monday, dragged down by exporters such as Toyota Motor as the dollar hit a 13-yr low against the yen, casting a cloud over their earnings outlooks. The benchmark Nikkei average fell 3.7% or 454.09 points to end at 11,787.51, its lowest finish since Aug. 8, 2005. The broader TOPIX index shed 3.7% or 43.58 points to 1,149.65, the lowest close since June 2005. Hong Kong stocks tumbled more than 5% on Monday, weighed by mounting fears of further fallout from the troubled credit markets after brokerage JPMorgan Chase bailed out stricken rival Bear Stearns. Hong Kong blue chips sank to lows not seen since August, when turmoil in the risky subprime debt market sparked massive sell-offs in global equities. Hong Kong-listed shares in mainland companies, or H shares, tumbled 7.2% in their worst one-day%age loss in nearly two months… The Sensex is now down 859 points at 14,901. The NSE Nifty is down 223 points at 4,523. (Reuters)
06:37 Bear Stearns fire sale sparks Europe share plunge

European shares tumbled by more than 3% early on Monday as a distress sale of Bear Stearns pushed rattled investors to dump financials, fearing contagion across the banking system. The euro hit a new high against the dollar and crude continued to surge to new records, compounding the woes of companies in the region. At 0920 GMT, the FTSEurofirst 300 was down 3.2% at 1,215.32, tracking big losses in the United States and Asia after JP Morgan unveiled a takeover of stricken rival Bear Stearns at a rock-bottom price. Across Europe, Britain’s FTSE 100 was down 1.9%, Germany’s DAX slumped 2.8% and France’s CAC lost 2.4%. (Reuters)
06:36 WIRES On The Wires

AAR (AIR) announces that it has been awarded a five-year contract by the U.S. Army for the repair and overhaul of a key control component on the CH-47 helicopter, valued at $25 mln… Heliservicio Campeche, a joint venture co of Compania Inversora Corporativa and Bristow Group (BRS) announce that it has been awarded a 5-yr contract for five medium and two small helicopters by a major customer in Mexico. Total revover the term of the contract is estimated at $90 mln.
06:35 XJT ExpressJet and Hayman Advisors announce agreement regarding potential proxy contest (1.58 )

Co and Hayman Investments jointly announce that they have reached an agreement regarding the potential proxy contest pertaining to the election of directors to ExpressJet’s board of directors at the 2008 annual meeting of stockholders. ExpressJet and Hayman Advisors have determined that the co’s stockholders will be better served by resolving this matter well in advance of the May meeting and working together going forward. As part of the agreement, ExpressJet will increase the size of its board from 8 to 9 directors and appoint as a new director Andrew N. Jent, one of the candidates that Hayman Advisors had previously announced it would be nominating. Mr. Jent will be appointed to the newly created vacancy in Class II of the board, with a term expiring at the 2009 annual meeting of stockholders.
06:32 SHLM A. Schulman selects UBS as advisor to explore strategic alternatives (20.05 )

Co announces that the Special Committee of its Board of Directors has engaged UBS Investment Bank as its financial advisor to explore strategic alternatives to maximize stockholder value. Such alternatives could include, without limitation, a strategic acquisition, merger or sale of the co.
06:32 CAPA Vector Capital proposes acquisition of Captaris for $4.75/share (3.49 ) -Update-

Vector Capital announces that it has made a proposal to the Board of Directors of Captaris to acquire all the outstanding common stock of Captaris for $4.75 per share.
06:31 RAMR Ram Holdings reports Q4 EPS of ($2.96), ex items vs $0.36 First Call consensus (1.42 )

06:31 ADEP Adept Tech selected to supply automation software and robotics to ‘major’ German solar cell production equipment manufacturer (8.43 )

Co announces that its automation software, robotics and system products have been selected by S.L.S Solar Line Saxony as standard products for their automation equipment for solar cell production. S.L.S was established as a joint venture between Roth & Rau AG Germany and USK Karl Utz Sondermaschinen Germany to accelerate the production of standard technology products for the manufacturer of solar cells.
06:30 CALLS Early Research Calls I

Upgrades: Citigroup upgrades AnnTaylor (ANN 21.95) to Buy from Hold and raises their tgt to $29 from $23.50, following Q407 EPS that met firm and consensus expectations, as they expect a turnaround at Loft, improving ROIC from restructuring & gross margin expansion on tight inventory management… HSBC upgrades PepsiAmericas (PAS 24.71) to Neutral from Underweight… Bear Stearns upgrades Wynn Resorts (WYNN 96.67) to Outperform from Peer Perform… Lehman upgrades Photon Dynamics (PHTN 9.87) to Overweight from Equal weight and raises their tgt to $13 from $12, based on checks suggesting 1H08 bookings are poised for continued strength and LCD capex should remain strong in CY09 (firm est ~flat y/y), while consensus estimates aren’t reflecting either scenario, in their view. Downgrades: Citigroup downgrades Coach (COH 28.03) to Hold from Buy and lowers their tgt to $31 from $40, based on the lack of a near-term catalyst given investor concerns over the handbag category performance in a recession and believe the lack of sales visibility appears to be holding the stock back… UBS downgrades Bank of New York Mellon (BK 43.00) to Neutral from Buy… UBS downgrades Lehman Bros. (LEH 39.26) to Neutral from Buy… UBS downgrades Goldman Sachs (GS 156.86) to Neutral from Buy… UBS downgrades State Street (STT 76.12) to Neutral from Buy… UBS downgrades Invesco (IVZ 22.13) to Neutral from Buy… UBS downgrades TD AMERITRADE (AMTD 16.50) to Neutral from Buy… JP Morgan downgrades Portugal Telecom (PT 11.79) to Underweight from Neutral… Bear Stearns downgrades Newcastle Investment (NCT 8.86) to Peer Perform from Outperform.
06:23 S&P futures vs fair value: -22.9. Nasdaq futures vs fair value: -35.3.
06:22 European Markets

FTSE…5501.20…-130.50…-2.3%. DAX…6229.88…-222.02…-3.5%.
06:22 Asian Markets

Nikkei…11787.51…-454.09…-3.7%. Hang Seng…21084.61…-1152.50…-5.2%.
06:19 AES AES Corp beats by $0.02, beats on revs; guides FY08 EPS below consensus (17.60 )

Reports Q4 (Dec) earnings of $0.26 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.24; revenues rose 25.2% year/year to $3.67 bln vs the $3.21 bln consensus. Co issues downside guidance for FY08, sees EPS of $1.14, excluding non-recurring items, vs. $1.20 consensus.
06:15 RPRX Repros Therapeutics reports Q4 EPS of ($0.26) vs ($0.36) First Call consensus; revs $.352 mln (8.56 )

06:15 USBE US BioEnergy misses by $0.05, beats on revs (5.07 )

Reports Q4 (Dec) loss of $0.09 per share, includes merger expenses and hedging costs, $0.05 worse than the First Call consensus of ($0.04); revenues rose 1.3% year/year to $152 mln vs the $147.6 mln consensus.
06:14 BRKR Bruker Corp. combined financial results for Q4, including BioSpin group (14.02 )

In the fourth quarter of 2007, Combined revenue increased by 31% to $343.1 million, compared to Combined revenue of $261.5 million in the fourth quarter of 2006. Combined net income in the fourth quarter of 2007 increased to $37.0 million, or $0.22 per diluted share, compared to Combined net income of $35.6 million, or $0.22 per diluted share, in the fourth quarter of 2006. Co sees combined rev growth of more than 8% for FY08.
06:12 WM Washington Mutual awarded $382 mln in Anchor Savings goodwill litigation (10.59 )

Co announces that on March 14, 2008, the U.S. Court of Federal Claims published its written decision in the case of Anchor Savings Bank, FSB v. The United States of America, awarding Washington Mutual Bank $382 mln for damages, and an additional amount for taxes that will be determined by the court.
06:10 HWK Hawk Corp reports Q4 results above consensus; guides FY08 revs above consensus (15.32 )

Reports Q4 EPS of $0.16 vs $0.14 First Call consensus; revs $57.2 mln vs $54.10 mln single estimate. Co sees FY08 revs $245-250 mln vs $237.90 mln First Call consensus.
06:10 WIRES On The Wires -Update-

Acacia Research (ACTG) announces that its Disc Link subsidiary has entered into a license agreement with Siemens (SI) Product Lifecycle Management Software… Marvel Studios, a subsidiary of Marvel Entertainment (MVL), has entered into its first basic cable distribution relationship for its self-produced movies through an agreement with FX… Alliance Semiconductor (ALSC.PK) announces that its Board declared a special one-time cash dividend of $0.25 per share. The dividend is payable April 8, 2008 to shareholders of record as of March 31, 2008… Safeguard Scientifics (SFE) announces that it is filing a Form 12b-25, Notification of Late Filing, with the SEC relating to its Annual Report on Form 10-K for the year ended December 31, 2007… AgFeed Industries (FEED) announces that one of AgFeed’s hog farms, the Wannian Xiandai hog farm, has been granted a direct export license by the Chinese Ministry of Commerce for hog export to the Hong Kong market… Finisar (FNSR) increases line of credit with Silicon Valley Bank (SIVB) to $70.5 mln.
06:07 PMI PMI Group reports Q4 (Dec) results (5.69 )

Reports Q4 (Dec) loss of $12.51 per share, may not be comparable to the First Call consensus of ($2.42). Co sees FY08 paid claims of $825-975 mln.
06:05 BWP Boardwalk Pipeline Partners announces plan to sell $700 mln of equity to Loews (21.45 )

Co announces that it plans to sell $700 mln of new equity to Loews (LTR), which owns approx 70% of Boardwalk Pipeline, including its general partner. The investment would be made primarily through the sale of newly created Class B limited partnership units of Boardwalk Pipeline. The Boards of Directors of Boardwalk Pipeline’s general partner and Loews have authorized the investment, subject to approval by the Conflicts Committee of Boardwalk Pipeline’s general partner, as well as the completion of definitive documentation.
05:48 WIRES On The Wires -Update-

BioMed Realty Trust (BMR) announces that its board of directors has declared a Q108 dividend of $0.335 per share of common stock, an 8.1% increase over the previous quarterly dividend of $0.31 per share.
05:47 PGNX Progenics Pharma reports Q4 results (4.99 )

Reports Q4 (Dec) loss of $0.53 per share, $0.04 worse than the First Call consensus of ($0.49); revenues fell 29.2% year/year to $15.53 mln vs the $17.74 mln consensus.
05:42 BMY Bristol-Myers sounds out baby food sale - Financial Times (20.64 )

Financial Times reports Bristol-Myers Squibb is quietly sounding out potential bidders for a possible sale of Mead Johnson, its baby formula business, which is valued at between $7 bln and $9 bln. The co has tentatively approached PepsiCo (PEP), Danone, Nestle, Kraft (KFT) and HJ Heinz (HNZ) to test the appetite for a formal auction of Mead Johnson, according to people close to the situation. They said BMS had also put out feelers to pharmaceutical companies which have nutritional divisions, including Johnson & Johnson (JNJ), GlaxoSmithKline (GSK) and Novartis (NVS). Bristol has made informal approaches, but it has not yet started a sales process,” they added. It comes less than three months after the co said it would conduct a strategic review of both its nutritionals business and ConvaTec, the wound care products supplier it owns, to focus on becoming a global biopharmaceutical co. Bristol declined to comment on the sale, but said it “continued to evaluate its strategic options with Mead Johnson and Convatec”. The co could also decide to spin off the units to shareholders, or do nothing.
05:38 Alitalia takes offer for buyout - NY Times

The NY Times reports the board of Alitalia, the money-losing Italian airline, accepted a 747 mln-euro takeover offer from Air France-KLM on Sunday, seizing a financial lifeline at the 11th hour after months of political indecision and labor resistance. After a marathon meeting that began Saturday and lasted more than 10 hours, Alitalia’s board issued a statement shortly after midnight announcing its unanimous approval of the offer. The $1.17 bln deal now awaits approval from the Italian government — which owns 49.9% of the airline’s shares — as well as national and European Union regulators. Under the terms of the proposal, Air France-KLM said it would exchange one of its shares for every 160 of Alitalia stock, valuing the Italian airline at 139 mln euros, or about 0.10 euro a share. That represents a discount of more than 80% to Alitalia’s closing share price Friday of 0.53 euro. Air France-KLM also said it would buy all of Alitalia’s outstanding convertible bonds, worth around 608 mln euros as of Friday. Air France-KLM also said that it would inject 1 bln euros of capital into Alitalia through an offering of new shares to existing shareholders once the takeover was complete.
05:34 UBS UBS is said to consider 8,000 layoffs - NY Times (27.76 )

The NY Times reports UBS is considering cutting as many as 8,000 jobs to save costs, and will not rule out a possible split of its wealth management and investment banking business, a Swiss newspaper reported Sunday. The chief executive, Marcel Rohner, reaffirmed at a recent meeting of 300 senior UBS bankers that the co wants to keep its wealth management and investment banking operations under one roof, but he also said alternative plans always have to be considered, the Swiss weekly SonntagsZeitung reported. The newspaper did not name its sources.
05:32 Gold Miners’ improving prospects: For ‘unhedged’ plays, at the least - WSJ

The Wall Street Journal reports as spot gold continues to rise, more miners are going to considerable effort - and expense - to get out of contracts that have sometimes netted several hundred dollars an ounce less than gold’s price on the open market. While that may be good news in the short term, there are trade-offs. Hedging or preselling gold that hasn’t yet been mined has historically been a good way to lock in a steady stream of revenue and fund new, capital-intensive mining projects. As gold prices rise, the miners have to disclose losses from those hedging strategies under “mark-to-market” accounting rules to reflect the increasing liability. Investors have become “extremely vocal about criticizing companies that have hedging programs,” said James Vail, portfolio manager of the ING Global Natural Resources Fund. For decades, investors have stashed money in mining stocks as a proxy for betting on the price of gold. In the long term, gold stocks return 30% to 50% more than gold’s price, Mr. Vail estimated. But the correlation broke down during the 1990s in part because of hedging. Now, with gold trading at record highs and most companies having no hedges around their necks, analysts said they are going to see a restoration of gold shares outperforming bullion. ING’s Mr. Vail said he is looking for companies with “no hedges, growing production and in the right geography” — all factors that can increase their stock prices. One name cited is Barrick Gold (ABX).
05:28 DT Deutsche Telekom nears deal for 20% stake in Hellenic Telecom - WSJ (17.74 )

The Wall Street Journal reports Deutsche Telekom is close to buying at least a 20% stake in Hellenic Telecommunications Organization SA (OTE 14.94), in a deal that could be worth about $3 bln, people familiar with the matter said. A deal for Deutsche Telekom to take the stake in Greece-based OTE could be announced as early as today, the people said. Deutsche Telekom is buying the stake from Marfin Investment Group, a Greek investment co, the people said. Deutsche Telekom likely sees the stake as a first step toward control of the carrier, a person familiar with the matter said.
05:25 CME CME moves closer to a deal for Nymex - WSJ (486.05 )

The Wall Street Journal reports CME (CME) moved closer to an agreement to acquire Nymex Holdings (NMX), a $9.3 bln deal that expands the CME into energy trading while underscoring the importance of technology to exchanges. The deal, set to be announced as soon as this morning, would end more than 135 years of independence for the New York Mercantile Exchange. Boards from both companies met yesterday to vote on the transaction.
05:21 SI Siemens’s outlook dims as several projects struggle - WSJ (124.54 )

The Wall Street Journal reports Siemens (SI) issued a profit warning early Monday, estimating that weaker-than-expected performance in major business projects would drag down earnings in the current fiscal quarter by about EUR 900 mln ($1.4 bln). After posting a healthy rise in orders late last year, Siemens predicted in January that revenue would grow at least twice as fast as the global economy and that operating profit would expand at least twice as fast as its revenue growth. Siemens said that a continuing review of its fossil-fuel generation, mobility and information-technology units indicate a “substantial impact” on earnings for the current fiscal year ending Sept. 30. It cited struggling turnkey projects, delays in the awarding of major contracts and risks to IT projects in the United Kingdom, including the cancellation of a major order. Its fiscal second quarter ends March 31. The co said it expects the charge of EUR 900 mln to represent “the largest piece of any additional financial burdens” for 2008. It added that it remains committed to its 2010 business targets and that it expects “definite progress” toward those targets in 2009. Management will have a conference call with investors early today.
05:18 Early Newspaper Headlines: SI - CME/NMX - DT/OTE - UBS - BMY

WSJ: Siemens’s (SI) outlook dims as several projects struggle… CME (CME) moves closer to a deal for Nymex (NMX).. Deutsche Telekom (DT) nears deal for 20% stake in Hellenic Telcom (OTE)… Gold miners’ improving prospects: For unhedged plays, at the least. NY Times: UBS (UBS) is said to consider 8,000 layoffs… Alitalia takes offer for buyout. Financial Times: Bristol-Myers (BMY) sounds out baby food sale.
04:15 WY Weyerhaeuser sells Containerboard, Packaging and Recycling to International Paper for $6 bln in cash (61.97 )

Co announces the sale of its Containerboard Packaging and Recycling business to International Paper (IP 32.26) for $6 bln in cash, subject to post closing adjustments. Weyerhaeuser said it expects to use a substantial portion of the after-tax proceeds from the sale to pay down debt. The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities. The transaction affects approx 14,300 employees.
03:16 WIRES On The Wires -Update-

Medicis (MRX) and Ipsen announce that Ipsen has submitted a Biologics License Application for the botulinum toxin type A, Reloxin, in aesthetic indications to the FDA’s Division of Dermatology and Dental Products, within the Center for Drug Evaluation and Research.
03:14 CRME Cardiome Pharma announces positive interim Ph. 2b results for oral vernakalant and engages Merrill Lynch as strategic advisor (6.24 )

Co announces positive interim clinical results from its 90-day Phase 2b study of vernakalant (oral). The interim analysis demonstrated statistically significant efficacy for the patient group receiving 500mg b.i.d. of vernakalant (oral) as compared to placebo. The safety data from the interim analysis also suggests that vernakalant (oral) was well-tolerated in the atrial fibrillation population studied during the dosing period under analysis.
03:11 OPTT Ocean Power Technologies reports Q3 results (12.60 )

Reports Q3 (Jan) loss of $0.39 per share, excludes foreign exchange gain, $0.10 worse than the First Call consensus of ($0.29); revenues rose 118% year/year to $1.42 mln vs the $1.99 mln consensus.
02:34 WIRES On The Wires -Update-

Cell Therapeutics (CTIC) announces that patients with previously untreated follicular non-Hodgkin’s lymphoma treated with fludarabine and mitoxantrone, followed by administration of Zevalin, achieved 96% complete remission, an estimated three-year progression-free survival rate of 76%, and a 100% estimated three-year overall survival rate… Crucell N.V. (CRXL) and DSM Biologics, a business unit of DSM Pharmaceutical Products, announce that MorphoSys AG has decided to extend the PER.C6 technology licensing agreement entered in September 2004, exercising an option for clinical and commercial production of antibodies.
02:24 CAPA Captaris announces evaluation of strategic alternatives (3.49 )

Co announces that its Board of Directors has decided to evaluate strategic alternatives to further enhance shareholder value. To oversee and expedite this process, the Board has established a special committee comprised of independent directors of Captaris. Bruce L. Crockett, Chairman of the Board, stated, “We have received unsolicited inquiries from multiple parties who have expressed an interest in a potential transaction with Captaris. We plan to conduct a fair, orderly and broad-based process. This process will commence immediately and we expect to conclude it as expeditiously as possible…”
01:15 EXTR Extreme Networks mentioned positively in Technology Trader - Barron’s (3.02 )

Barron’s reports shares of Extreme Networks (EXTR) are cheap given its $226 mln in cash and property/equipment that could be worth more. They value the co at approx $266 mln before operations. In other words, Extreme’s operations are valued at less than $100 mln.
01:14 GIII G-III Apparel mentioned positively in Sizing Up Small Caps - Barron’s (12.03 )

Barron’s reports G-III Apparel Group’s (GIII) -III’s profits are likely to keep growing smartly as the co expands its non-outerwear business, now 20% of total sales of about $500 mln. If it manages to reduce outerwear’s contribution to 50% of revenue, as planned, it also will be able to smooth earnings over seasonally weak periods. “As G-III continues to grow the non-outerwear business, we expect it to catch up with peer-group multiples,” says Danielle Williams, assistant portfolio manager at Independence Investments, subadviser to the John Hancock Small Cap Fund. G-III does “a great job of servicing the entire department-store spectrum, from J.C. Penney to Neiman-Marcus,” Williams adds. She doesn’t have a price target for G-III, but notes the fund looks for stocks that can appreciate by at least 50% over 12 to 18 months. Jody Kane of Sidoti says G-III could trade up to 20x earnings, which would put the shares at about 25, based on fiscal ‘09 estimates. He points to “significant growth opportunities” in non-outerwear apparel.
01:13 PERY Perry Ellis mentioned positively in Sizing Up Small Caps - Barron’s (16.98 )

Barron’s reports barring a deep economic recession, shares of Perry Ellis (PERY) are likely to rally this year, thanks to superior management, stronger finances and a healthy outlook for its brand. PERY trades for 0.3 of sales and around book value. It fetches 9.6x ‘09 consensus estimates of $1.86 a share, and 9x the midpoint of their CEO’s estimated range — both a discount to the small-cap apparel sector’s average p/e multiple of 11-12. Jody Kane, an analyst at Sidoti & Co., says the stock deserves a “worst-case-scenario” P/E of 12 or 13, which would imply a price of 23 based on analysts’ estimates’ and as much as 25 based on the CEO view. Sidoti notes Perry has been a shrewd acquirer of brands at discount prices and has used its cash flow to reduce debt to $198 mln, or 41% of total capital, down from 51% in 2002.
01:12 NFP National Financial Partners mentioned negatively in Barron’s (22.53 )

Barron’s reports National Financial Partners (NFP) stock might seem cheap at 8x the $2.86 a share it says it earned in 2007 (when it also gave out 75 cents in dividends) — but those earnings are a pro-forma number that ignores large non-cash expenses from amortizing buyouts and writing off the failures. “The stock is going to sink a lot more,” predicts Mark Roberts of Off Wall Street Consulting Group. “This business doesn’t work.” Chief executive Jessica Bibliowicz says life settlements get cash to consumers whose insurance needs have changed. But cooled demand for the products is partly to blame for the collapse in “same-store sales” growth at NFP firms. NFP tells investors in its shares to watch “cash” earnings, which don’t include losses from 44 restructured or shuttered acquisitions. In summary, NFP has succeeded at acquiring insurance brokers, but not in expanding the business. If the co fails to thrive, brokers may become reluctant to sell themselves for NFP stock.
01:11 MCD McDonald’s mentioned negatively in Barron’s (54.78 )

Barron’s reports shares of McDonald’s (MCD) aren’t likely to outperform the market anytime soon. International sales, particularly in emerging markets, are a bright spot, but the European economy is likely to slow, too. And China, for all its strong growth, makes up less than 3% of McDonald’s outlets. “We still like the stock,” says Dean Kartsonas, a portfolio manager of the Federated Capital Appreciation Fund, which owns McDonald’s shares, “but it’s going to be hard to replicate what the stock’s done over the last four years.” Federated has trimmed its position recently. “If the U.S. business is going to slow, the premium value won’t be maintained,” avers Howard Penney, an analyst at Friedman Billings Ramsey. He’s skeptical about McDonald’s plan to introduce a specialty coffee bar, for example, to restaurants by the end of 2009 to capture a bigger share of the beverage market.
01:10 Bruce Berkowitz, President of Fairhome Fund, offers his favorite picks - Barron’s

Barron’s reports Bruce Berkowitz of Fairhome Capital Management favors Berkshire Hathaway (BRK.A), WellCare Health Plans (WCG), Sears Holdings (SHLD) and Mohawk Industries (MHK).
01:09 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Peabody Energy (BTU) and United Parcel Service (UPS).
01:09 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Wal-Mart (WMT), Apache (APA), Anadarko Petroleum (APC), Chesapeake Energy (CHK), Procter & Gamble (PG), Core Labs (CLB), Allergan (AGN) and Philippine Long Distance (PHI).
01:08 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Friday’s edition, Jim calls Schering-Plough (SGP) “one of the cheapest drug stocks out there based on its growth rate,” and he touted the co’s Zetia and Vytorin drugs as blockbusters in the making. As for Merck (MRK), Cramer liked both the co’s cholesterol drugs and the promise of its HPV vaccine. Finally, he favors direct sellers Avon (AVP), Herbalife (HLF) and Tupperware (TUP).
01:04 MDVN Medivation’s Dimebon stabilizes behavioral symptoms in Alzheimer’s disease patients, (13.99 )

Co announces that clinical results from its first pivotal trial of Dimebon showed that behavioral symptoms were stabilized in patients with mild-to-moderate Alzheimer’s disease over a one-year period, resulting in decreased caregiver distress. Benefits of Dimebon were seen across most behavioral symptoms and were most prominent in the symptoms of depression, apathy, hallucinations, irritability and motor disturbance. The data were presented 3/15 during a poster session on new research topics at the annual meeting of the American Association for Geriatric Psychiatry.
01:03 WIRES On The Wires

The Pepsi Bottling Group (PBG) and PepsiCo (PEP) announce that, through their joint venture in Russia - PR Beverages Limited - they have signed an agreement with the shareholders of Sobol-Aqua JSC to acquire 100% of the privately-held co.
01:01 ERTS John Pleasants named President, Chief Operating Officer of Electronic Arts (46.91 )

01:00 BSC Bear Stearns Q1 earnings announcement scheduled for March 17 will not occur (30.00 )

Co announces in light of entering into an agreement to merge with JPMorgan Chase (JPM), Bear Stearns will not be announcing its Q108 financial results on Monday, March 17, 2008, as previously scheduled.
00:58 JPM JP Morgan Chase confirms it will acquire Bear Stearns (36.54 )

Co confirms it is acquiring Bear Stearns (BSC 30.00). The Boards of Directors of both companies have unanimously approved the transaction. The transaction will be a stock-for-stock exchange. JPMorgan Chase will exchange 0.05473 shares of JPMorgan Chase common stock per one share of Bear Stearns stock. Based on the closing price of March 15, 2008, the transaction would have a value of approx $2 per share. Effective immediately, JPMorgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations. In addition to the financing the Federal Reserve ordinarily provides through its Discount Window, the Fed will provide special financing in connection with this transaction. The Fed has agreed to fund up to $30 bln of Bear Stearns’ less liquid assets. The transaction is expected to be ultimately accretive to JPMorgan Chase’s annual earnings. The Fed will provide special financing in connection with this transaction. The Fed has agreed to fund up to $30 bln of Bear Stearns’ less liquid assets.
00:36 Federal Reserve announces two initiatives designed to bolster market liquidity and promote orderly market functioning

The Federal Reserve on Sunday announced two initiatives designed to bolster market liquidity and promote orderly market functioning. First, the FRB voted unanimously to authorize the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers to provide financing to participants in securitization markets. This facility will be available for business on Monday, March 17. It will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment-grade debt securities. The interest rate charged on such credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York. Second, the FRB unanimously approved a request by the Federal Reserve Bank of New York to decrease the primary credit rate from 3.5% to 3.25%, effective immediately. This step lowers the spread of the primary credit rate over the FOMC’s target federal funds rate to 1/4 percentage point. The Board also approved an increase in the maximum maturity of primary credit loans to 90 days from 30 days.
00:32 BSC Bear Stearns to be bought by JP Morgan for $2/share in stock-swap; JPM exchanging 0.05473 of its common for each BSC share - WSJ (30.00 )

The Wall Street Journal reports Bear Stearns reached an agreement to sell itself to JP Morgan (JPM 36.54). The deal calls for J.P. Morgan to pay $2 a share in a stock-swap transaction, with J.P. Morgan Chase exchanging 0.05473 share of its common stock for each Bear Stearns share. Both companies’ boards have approved the transaction, which values Bear Stearns at just $236 mln based on the number of shares outstanding as of Feb. 16. Effective immediately, J.P. Morgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations. The deal isn’t subject to any conditions, except shareholder approval. It is expected to close before the end of the second quarter.