Trading for the Masses

Distribution was showing its hand on the charts the last few weeks in oil.gold, softs, you pick em. Tom DeMark indicators gave a 13 sell on Friday on the Commodity Index. Very timely so far.

Shall see Oil down nearly 10% in a week, Gold down 10%. Game over, tilt o wheel. Fed fighting deflation, yet deflation is winning today!!

Keeping with today’s themes, Here’s a little Billy Bragg for you

The new format we have taken to financial stresses in the U S of A

We don’t need no stinkin’ free markets anymore as Rick Santelli said on CNBC, the stuff our government is doing is the stuff that countries with hammers sickles on their flags do. Enough said. IPO dumps their shares on the public today, making 17.3 billion for the insiders to spend as they please. As I always say, companies don’t go public to give away the farm, they do this to get a big fat payday, nothing more. Remember that as you chase the V ipo shares to the sky today in the alrgest IPO ever.

9:04 FTE France Telecom says fixed activities to be stable in ‘08 - DJ (34.13 )

09:03 FNM Fannie Mae and FRE regulators approve purchase of more home loans (28.22 ) -Update-

(FRE)
09:02 LVS Las Vegas Sands tgt cut to $127 at Jefferies (74.84 )

Jefferies cuts their tgt on LVS to $127 from $133 as a result of a slower than expected physical opening of the Palazzo and a more conservative ramp-up of the property going forward, coupled with a slight delay in the opening of the Four Season Macau.
09:02 SMI Semi Manufacturing explores solar business - DigiTimes (2.92 )

DigiTimes reports the co will spread the focus of its wafer fabs across different areas in China, with those in the northeast and northwest to be allocated for the co’s deployment in the solar business, revealed company CEO Richard Chang speaking at SEMICON China 2008 (March 18-20). Chang said SMI has been assessing its deployment in the solar business and finds the mentioned regions suitable due to their long daylight hours. However, he did not reveal further details about the co’s progress. In addition to solar energy deployment, Chang also updated SMIC’s overall deployment in China. SMIC will centralize advance process development at its two 12-inch fabs in Beijing and Shanghai. The Beijing fab will focus on 90nm and 65nm R&D, while supporting the Shanghai fab on the development of 40nm.
09:01 S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -3.0.

The S&P 500 is set for a flat open after futures gain some ground. Visa (V) is set to garner attention this morning as its IPO was priced at $44, making it the largest IPO ever. MasterCard (MA) is up more than 400% since its IPO in 2006, so traders are looking to not miss out on Visa.
09:01 RADS Radiant Systems Selected for BURGER KING Restaurants in Middle East and North Africa

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09:01 ALKS Alkermes announces restructuring; to take $5-10 mln charge in Q4 (10.85 )

Co announced that it is restructuring its operations following the termination by Eli Lilly and co (Lilly) of the AIR Insulin program, as announced March 7, 2008. With this restructuring, Alkermes is reducing its workforce by approximately 150 employees and closing its AIR commercial manufacturing facility in Chelsea, MA. The co is taking these actions based on its current expectations of the financial impact of Lilly’s termination of the AIR Insulin program. The reduction in workforce, effective this week, represents approximately 18% of the co’s total workforce. Alkermes does not anticipate any expense savings as a result of the restructuring in fiscal 2008, ending March 31, 2008. The co expects to take a restructuring charge in the fourth quarter of fiscal 2008 in the range of $5 mln to $10 mln associated with the reduction in workforce and facility-related expenses. In addition, the co expects to take an impairment charge of up to $15 mln in the fourth quarter of fiscal 2008 related to fixed assets at the Chelsea facility. Alkermes expects cost savings from the restructuring in the range of $15 mln to $20 mln in fiscal 2009 and will provide more detailed financial expectations for fiscal 2009 in May.
09:00 SCANX Gapping down

In reaction to weak earnings/guidance: SINT -18.4%, DT -9.4%, MNST -8.6% (also downgraded to Neutral at JPMorgan), PEIX -6.9% (also files to delay 10-k and cites pending waiver from lenders), AGP -5.8%, SOL -5.8%, CHRS -5.7%, WERN -5.4%, CLC -5.2%, BPL -3.2% (also plans to offer Limited Partnership Units), PTR -3.1%, HWAY -3.1%, CHL -2.9%, FSYS -2.5%… Select telecom/equipment related stocks showing weakness following Sony Ericsson (JV b/wn ERIC and SNE) guidance and DT reporting: ERIC -11.2% (sees moderating growth of mobile phone units with related effects on sales and profit in Q108), NOK -7.8%, COMS -7.7%, TI -7.0% (says has no capital hike plan - DJ), STM -5.1%, SI -3.6%, FTE -3.3%, VOD -3.2%… Select financial stocks seeing profit taking following yesterday’s gains: MF -9.4%, RBS -6.9%, LEH -1.9%, C -1.1%… Other news: JRCC -6.7% (to sell 3.0 mln shares of common stock), MTG -5.4% (announces plans to sell $350 mln of common shares in a public offering), BZP -3.5% (announces 2 mln share offering of common stock), CCL -2.8% (still checking), RTP -2.8% and BHP -2.2% (still checking), SHPGY -2.0% (pulling back modestly after recent strength following multiple buyout rumors), MCGC -1.9% (announces transferable rights offering)… Analyst downgrades: INAP -15.8% (downgraded to Neutral at Merriman), RADN -9.6% (downgraded to Hold at Roth Capital), LAMR -2.2% (downgraded to Underweight at JPMorgan), PCLN -2.2% (downgraded to Neutral at Susquehanna), KFT -1.7% (downgraded to Neutral at JPMorgan), HD -1.6% (downgraded to Underperform from Market Perform at Morgan Keegan).
09:00 CP Canadian Pacific: Tougher conditions affect CP’s eastern operations; 1Q08 ests cut - RBC (66.55 )

RBC says difficult weather conditions has impacted CP’s eastern Canada network, most notably the Toronto-Montreal corridor, resulting in slower trains, higher switching costs, costly delays and increased operating expenses. As a result, firm is moderating their 1Q08 ests. Firm is reducing their Q1/08 EPS est to $0.73, from $0.78. Firm’s full year 2008 est goes to $4.79, from $4.85.
08:59 JRN Journal Commun says for the second period ended Feb 24, 2008, total revs for its Publishing and Broadcast groups of $33.61 mln decreased 7.5%

…
08:59 DELL Dell reportedly plans to resume handheld device business - DigiTimes (20.32 )

DigiTimes reports the co reportedly plans to resume its handheld device business and DELL may team up with Foxconn Electronics to develop Windows Mobile-based handheld devices, according to market sources in Taiwan. Dell has been reorganizing its team for handheld devices since it hired Ron Garriques, a former executive vice president at Motorola in charge of its cell phone division, in early 2007, the sources indicated. Dell apparently has accelerated its move towards the handheld device segment following Acer’s recent announcement of acquiring Taiwan-based smartphone maker E-Ten Information Systems, the sources added.
08:57 AFN Alesco tgt cut to $2.75 at RBC; 2008 EPS ests cut (3.24 )

RBC cuts their tgt on AFN to $2.75 from $4.00 as firm remains concerned that credit risk is on the rise due to current challenges in the financials sector, given that 73% of Alesco’s Q407 equity investments are in TruPs loans to banks and insurance companies. Firm is lowering their 2008 EPS est to $0.91 from $1.07, given expectations for further credit erosion ahead.
08:56 RENT Rentrak’s OnDemand essentials inks multi-year deal with Turner Broadcasting System (11.14 )

Co announces it has entered into a multi-year deal with Turner Broadcasting System and all eight of its On Demand network brands which include Adult Swim, Boomerang, Cartoon Network, CNN, TBS, TCM, TNT and TruTV (formerly CourtTV). These networks have significant distribution across MSOs, the inclusion of which will enhance RENT’s capacity to provide timely, aggregated and customizable analysis of anonymous census level on demand viewing data.
08:56 EMIS Emisphere Tech announces second study demonstrating ‘dramatic increases’ in absorption of oral B12 using eligen technology at lower doses (1.49 )

Co released results of additional animal studies demonstrating that its proprietary eligen technology enhances the absorption of oral B12 at considerably lower doses than were used previously. The lower doses are believed to be more physiologically relevant. The data showed that the rate of absorption of B12 administered with eligen increased significantly — 26 to 34 minutes, compared with 72 minutes for B12 administered alone. Confirming the original study, overall absorption of B12 using eligentechnology was 18 times greater than with the same dose administered alone.
08:51 Carlyle Capital says fund insolvent - Reuters.com

Reuters.com reports Carlyle Capital said that its liquidators have determined the fund to be insolvent and that investors were not likely to get any proceeds after its operations wind up. Carlyle, which late on Tuesday asked for trade in its shares to be suspended, said in a statement that it had “extremely limited cash assets”.
08:50 North American semiconductor equipment industry posts February 2008 book-to-bill ratio of 0.93

North American-based manufacturers of semiconductor equipment posted $1.23 bln in orders in February 2008 (three-month average basis) and a book-to-bill ratio of 0.93 according to the February 2008 Book-to-Bill Report published today by SEMI. The three-month average of worldwide bookings in February 2008 was $1.23 bln. The bookings figure is about 8% greater than the final January 2008 level of $1.14 bln, but 12% less than the $1.40 bln in orders posted in February 2007. The three-month average of worldwide billings in February 2008 was $1.32 bln. The billings figure is about 3% greater than the final January 2008 level of $1.28 bln, but about 8% less than the February 2007 billings level of $1.42 bln… Current inventory and utilization rates are at healthy levels but device manufacturers are being conservative in their Capex spending.
08:49 GVP GSE Systems initiated with a Buy at Dougherty- tgt $13 (7.95 )

Dougherty initiates GVP with a Buy and a $13 tgt saying they believe GVP is strategically positioned to benefit from the booming, long-term growth in global power generation, be it nuclear or fossil fuel. With its real-time simulators the firm says, GVP is a market leader in the nuclear industry, and it is also winning an impressive amount of non-nuclear (fossil fuel) generating contracts. Global growth in hydrocarbon processing is equally significant, and is a sector ripe for GVP’s process manufacturing applications.
08:48 CVC Cablevision: Sundance channel for sale; CVC could be buyer - Pali Research (21.79 )

Pali Research says that the Sundance Channel, according to multiple Pali sources, has been put up for sale over the past several weeks. While firm believes both NBC and CBS would have interest in owning 100% of the network, they believe issues surrounding pricing to an existing owner make it more likely that the network is sold to a third-party. Firm sees potential buyers including CVC, Time Warner, VIA.B among others. Firm believes CVC has a keen interest in Sundance as it could leverage its existing IFC/IFC Films franchise, as well as its AMC Network experience related to transitioning from a sub-fee only model to a sponsorship-driven model. While buying Sundance could be a positive long-term strategic move for CVC’s IFC, they believe it would be perceived negatively, as a meaningful portion of the free cash flow they expect CVC to generate would flow into non-core investments management’s desire to expand its live entertainment venue business and now potentially, the Sundance Channel to buildout IFC
08:47 CLC CLARCOR misses by $0.01, beats on revs; reaffirms FY08 EPS guidance (41.23 )

Reports Q1 (Feb) earnings of $0.35 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of $0.36; revenues rose 19.4% year/year to $250.2 mln vs the $246.1 mln consensus. Co reaffirms guidance for FY08, sees EPS of $1.85-2.05 vs. $1.94 consensus.
08:46 WIRES On The Wires

Raser Technologies (RZ) announces that the City of Anaheim, California has approved power purchase agreements for two of RZ’s planned geothermal power plants… Charlotte Russe Holding (CHIC) announces that the co’s board of directors approved an extension of the expiration date of its previously announced modified “Dutch Auction” tender offer. The tender offer, which was originally due to expire at 5:00 P.M., ET on Thursday, March 20, 2008, will now be set to expire at 5:00 P.M., ET, on Wed, April 2, 2008, unless further extended.
08:46 CLC sees FY08 $1.85-2.05 vs $1.94 First Call consensus

08:45 CLC prelim $0.35 vs $0.36 First Call consensus; revs $250.2 mln vs $246.12 mln First Call consensus

08:42 HD Home Depot: Downgrade details (2719 ) -Update-

As mentioned at 7:54 Morgan Keegan downgraded HD to Underperform from Market Perform saying recent macro data combined with the company’s sequential deceleration of monthly comp store sales during Q4 leads them to believe that management’s guidance and current earnings estimates are too high.
08:41 PTR PetroChina profits amid global run in prices - Globe and Mail (130.48 )

Globe and Mail reports the co said that profits rose by just 2.3% in 2007 as govt controls blocked it from passing on record-high crude costs to consumers, though a Chinese auto-buying boom drove a 21% jump in total sales. Earnings were 145.6 bln yuan, or $20.5 bln on revenues of 835 bln yuan. Profits were squeezed by a 20.1 bln yuan ($2.9 bln) loss at PetroChina’s refining unit due to a govt freeze on retail gasoline and diesel prices, the co said. “During the second half of 2007, international crude oil prices rocketed and as a result, domestic refineries incurred heavy losses in processing,” PetroChina said in a statement. It said supplies of gasoline and other refined goods were “very tight.”
08:39 BWLD Buffalo Wild Wings upgraded to Buy from Sell at SMH Capital- tgt $30 (21.23 )

08:39 XFML Xinhua Finance Fortune TV programs expand landing coverage to total 80 terrestrial TV channels (2.02 )

Co announces that two of the Fortune China financial television programs have added landing coverage to a total of eighty terrestrial television channels across 24 of China’s 31 provinces and provincial-level municipalities. The programs are Fortune China Weekly and Fortune Celebrity, the two weekly programs in the series.
08:37 ALL Allstate must cut California auto insurance rates 15.9% - LA Times (47.94 )

LA Times reports the co has been ordered to cut its automobile rates by 15.9% — an average savings of $124 per car, state Insurance Commissioner Steve Poizner said Tuesday. The new rate is effective April 14, and Allstate is considering whether to appeal the rate cut order in court. “California’s consumers deserve a competitive marketplace in which to shop around for the best rates that meet their needs,” Poizner said in a statement. “This reduction reaffirms my commitment to ensuring that excessive rates are not charged. At the same time, the rate reduction is fair and reasonable for the company.”
08:36 SCANX Gapping up

In reaction to strong earnings/guidance: FMCN +12.0%, LNN +7.5%, ADBE +5.4%, DFS +5.4%, AIR +5.3%, ATU +4.1%, MS +3.8%, CAH +2.5%, ROST +2.5%, GIS +1.7%, DRI +1.5%… Other news: BSC +14.6% (Joseph Lewis and former BSC CEO Jimmy Cayne are quietly searching for a white knight - NY Post), PRXI +11.1% (signs ten year agreement With Luxor Resort & Casino in Las Vegas to develop a new exhibition complex), NCC +4.4% (reports expected Visa IPO gain, expects 1Q08 pre-tax cash gain of approx $450 mln; also upgraded to Sector Perform at RBC), TMA +3.4% (showing continued strength following yesterday’s ~20% gains), PERY +2.0% (to be added to S&P SmallCap 600 Index; will take place of BELM), OI +1.7% (Cramer makes positive comments on MadMoney), EMKR +1.3% (comments on recent trading activity; to continue substantial revs growth and improve profitability), ACIW +1.1% (signs IT outsourcing agreement with IBM; estimated cost savings of $25-$30 mln)… Analyst upgrades: GTY +5.8% (upgraded to Hold at Stifel), IMCL +2.1% (upgraded to Buy at Citigroup).
08:35 WIRES On The Wires

Gentex (GNTX) announces that it is supplying auto-dimming interior and exterior rearview mirrors for the 2008/2009 Jaguar XF… Cano Petroleum (CFW) announces that it has entered into a $25 mln Subordinated Term Credit Facility with UnionBanCal Equities. The co also gave an operational update, “Based upon our current information, we project that we are within 45-60 days of seeing meaningful response at our Panhandle Field waterflood and all of our major projects are progressing according to plan.”
08:33 LNN Lindsay Manu reports Q2 EPS of $0.79 vs $0.21 in yr ago period; reports revs up 70% yr/yr to $108.4 mln (76.27 )

Q2 results include results from Watertronics, which was acquired in Jan, and Snoline SPA, which was acquired in Dec 2006. “With the current USDA forecast of a second consecutive year of record net cash farm income in 2008, we believe domestic demand for our irrigation products will remain robust. International demand is also expected to increase on the strength of higher agricultural commodity prices and global agricultural development. World-wide interest in the unique road safety products in our infrastructure segment provides continued opportunities for superior growth.”
08:33 DFS Discover Financial Services beats by $0.10 (17.40 )

Reports Q1 (Feb) earnings of $0.50 per share, $0.10 better than the First Call consensus of $0.40; revenue net of interest expense rose 3% to $1.3 bln.
08:31 DFS prelim $0.50 vs $0.40 First Call consensus

08:31 ROST Ross Stores reports EPS in-line, revs in-line (28.29 )

Reports Q4 (Jan) earnings of $0.70 per share, in-line with the First Call consensus of $0.70; revenues rose 2.7% year/year to $1.65 bln vs the $1.65 bln consensus.
08:31 VOXX Audiovox secures license for Energizer brand rechargeable power packs and other power products in Central and South America (9.97 )

Co announces that its wholly-owned subsidiary, Audiovox Accessories Corporation, has entered into a trademark licensing agreement with Eveready Battery, owner of the Energizer brand. Under the terms of the agreement, VOXX has acquired the licensing rights to market and distribute Energizer-branded products throughout Mexico, Central America, the Caribbean and South America, excluding select locations (Argentina, Bolivia, Uruguay, Paraguay and Chile). This licensing agreement includes rechargeable power packs and other power related accessories.
08:30 BONDX Posting Higher… 10-yr +17/32 yielding 3.419%

The market got a boost out of credit jitters overnight as UK banks suffer the liquidity squeeze rumor mill and yesterday’s FOMC-inspired stock gains are seeing little follow-through across the pond. The 2-10-yr yield spread is holding steady around 187.8 as yesterday’s steepening unwind finds a place to rest. Bond prices in the EuroZone and Japan were bid with the latter helped along by lowered growth projections by officials and a vacant BOJ gov seat. Treasuries have nothing to work with today and may suffer accordingly. Technically the bias remains positive and with headlines still trying to claim more banking victims, bonds should be bid on dips. Though without another round of risk aversion, the market will struggle to make further gains. Equities are pointing lower but that can change on a dime and any rally over there will drain some juice from bonds. Otherwise trade will be focused on squaring up into the shortened week and some middling data tomorrow. The dollar has given back some of the relief ground it got back on short coverage post-FOMC, but looks pegged at the 1.5700 point on the euro and is getting decades low value on yen at 99.00 as domestic rates are cut and expected to drop further. Spot gold has regained some ground on the ground dollar, but remains well off the records at 987.22 (+4.98). Crude fell ahead of inventories 107.71 (-1.71). There’s no data, no Fed-speak, no nothing but the horse you rode in on. The euro is at 1.5733 and the yen is at 98.8100. For more click here.
08:30 ROST prelim $0.70 vs $0.70 First Call consensus; revs $1.65 bln vs $1.65 bln First Call consensus

08:30 S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -10.0.

Early indications point to a bit of a pullback at the open. Crude oil is down 1.6% to 107.67 per barrel. Gold has dipped 1.6% to $988.30 per ounce.
08:29 GRB Gerber Scientific: New ion printer appears on track to ship Q1, possibly earlier - Needham (8.43 )

Needham says their channel checks suggest GRB’s new wide-format Solara ion inkjet printer is on track to ship in Q109, with initial shipments possibly as early as next month. With demand in its major markets, apparel equipment and signmaking/specialty graphics, holding up well and as GRB rolls out several new products, firm expects continued solid rev growth in F09. Together with initiatives to improve gross margins, firm believes GRB can show healthy operating margin expansion next year.
08:28 TASR TASER: Man dies after being Tasered by police - Chicago Sun-Times (10.03 )

Chicago Sun-Times reports a man in his 20s is dead after being Tasered by police after resisting arrest Tuesday night on the Near West Side. About 7:30 p.m., police took the man — who was reportedly high on drugs — into custody after he caused a disturbance at an unidentified location in the Marquette Police District. The man was then taken to Mount Sinai Hospital, at South California Avenue and West 15th Place, where he was Tasered by police, according to a police source. The man was reportedly Tasered after he resisted arrest and became combative and violent, according to police News Affairs Officer John Henry, who was citing preliminary information. “We are investigating,” said Ilana Rosenzweig, chief administrator for the Independent Police Review Authority. “We were notified of the death and we responded to the hospital last night. “I can confirm there was a death by someone who had been in the custody of the police. It was reported that he had been Tasered by police. Our investigation will determine what occurred.”
08:26 Raymond James initiates select Financial stocks

Raymond James initiates Investools (SWIM) with a Strong Buy. The firm initiates NYSE Euronext (NYX), TD Ameritrade (AMTD), OptionsXpress (OXPS), and Penson Worldwide (PNSN) with Outperforms. The firm also initiates Charles Schwab (SCHW), E*TRADE (ETFC), and NASDAQ (NDAQ) with Market Performs.
08:25 AMGN Amgen: Roche to increase royalty to Amgen for Mircera - WSJ (41.21 ) -Update-

WSJ reports still hoping to get its anemia drug Mircera onto the U.S. market despite a legal challenge from AMGN, Roche has agreed to pay Amgen a higher royalty fee than it proposed earlier. Amgen is asking the U.S. District Court for Massachusetts to grant a permanent injunction barring Roche from selling Mircera in the U.S. Last month, the court issued a preliminary injunction but said it might consider allowing Mircera onto the market if Roche agreed to five conditions. Roche agreed to the court’s conditions in a filing on March 17.
08:25 SUSQ Susquehanna Bank: Stifel getting more conservative across the board, lowering ests (21.05 )

Stifel says is light of the current banking environment, firm is lowering their 2008 EPS est to $1.39 from $1.52 to reflect higher assumed net charge-offs and a correspondingly higher loan loss provision, as well as higher interest expense tied Susquehanna’s issuance of $125 mln in trust preferred securities during the quarter and a lower expected lease securitization gain in 2Q08. Moreover, they are also initiating a 2009 EPS est of $1.52. Firm says credit has held up relatively well; however, uncertainty lies in residential construction portfolio.
08:24 V Visa IPO prices above range; largest IPO ever; a play on MA which is up 435% since its IPO debut in May 2006 (44.00 )

Credit card giant Visa (V) prices its IPO at $44, above the expected range of $37-42. Visa, the world’s largest credit card network, sold 406 mln class A shares, making this the largest IPO of all time. Visa-branded cards are accepted in more than 170 countries. The co has more branded credit and debit cards in circulation, more transactions and greater total volume than any of its competitors, including Mastercard. This IPO has been widely anticipated and there was some speculation that it would be delayed due to the weak overall market. However, the co decided to go ahead with the deal. Anticipation has been high because Mastercard (MA) has been a huge winner. MA priced at $39 in May 2006, opened modestly higher at $41 and is now trading at $210 for a +435% move in less than two years. Also, MA has done very well even as the overall market has been selling off, it’s up 35% since late Oct. This has generated a lot fo excitement about Visa. Both MasterCard and Visa are seen as good bets to avoid the market turmoil. According to Reuters, citing analysts, neither is directly exposed to rising defaults and late payments because it does not issue cards, unlike rivals such as American Express (AXP). Visa is much bigger than MasterCard and the expectation is that by being freed from the constraints of being a not-for-profit member-owned association, it could become an even more formidable competitor to MasterCard…. Unlike credit card lenders, Visa does not carry any consumer debt on its books. The company makes its money from processing fees, which have been steadily rising for years, including the past two U.S. recessions in 1991 and 2001, according to the AP. Since the last recession, Visa also has been able to entice consumers to use its credit and debit cards more frequently to pay for staples like groceries, gas and utility bills. Visa estimates about 42% of its transactions fall into this “nondiscretionary” category, up from 27% in 2000. As such, Visa could even benefit from tougher times if more cash-strapped consumers rely on their credit cards to make ends meet. Even if consumers cannot pay back the debt, Visa still makes money which is an attractive model. This is a large offering of 406 mln shares, led by JPMorgan and Goldman. (IPOXX)
08:22 White House signals openness on mortgage relief - WSJ

WSJ reports the Bush administration and congressional Democrats have begun negotiations over a plan designed to stave off hundreds of thousands of home foreclosures. After months of stalemate — and a week of financial turmoil sparked in part by the housing crisis — the White House signaled yesterday that President Bush is open to compromise with Democrats, who want more federal action. Rep. Barney Frank said his aides are holding discussions with Treasury Department officials. Mr. Frank has proposed a federal program that would provide insurance for up to $300 bln in refinanced, affordable-cost mortgages. It is far from clear whether the administration would be willing to embrace anything so ambitious. “I’m not the emperor,” Mr. Frank said in an interview yesterday. “Nothing gets done without negotiations.” White House spokesman Tony Fratto said if Congress comes up with “some things we think are effective and won’t cause greater problems down the road, then those are things that we’ll consider and the president will be willing to consider.” Mr. Fratto said the White House won’t “get into public negotiating over what those items might be.”
08:22 EBAY eBay: Stifel believes EBAY may beat for the right reasons (27.55 )

Stifel says EBAY shares now trade for 13.8x 2008 FCF or a 7.3% yield, after accounting for Skype at book value. Firm believes EBAY’s 2008 guidance is conservative. As the market has figured out over the past three years, EBAY is not the perfect network effect monopoly business it was once priced to be. Given the 55% pullback in the shares from peak levels, they believe the FCF multiple compression is overdone. To be sure, firm’s best idea in the sector remains AMZN for the long-term but they continue to believe EBAY is undervalued. Firm cuts tgt to $35 from $37.
08:22 LEH Lehman Brothers: CNBC gives further details on LEH & GS use of Fed discount window (46.49 )

CNBC gives further details on LEH & GS’ use of Fed discount window. CNBC says that LEH accessed Fed’s discount window at 5pm Tuesday, requesting $2 bln in financing. Says amount of GS request is unknown… See 7:49 comment for details.
08:20 MCS Marcus Corp beats by $0.01, beats on revs (16.88 )

Reports Q3 (Feb) earnings of $0.06 per share, $0.01 better than the First Call consensus of $0.05; revenues rose 20.4% year/year to $86 mln vs the $84.1 mln consensus.
08:20 BA Boeing: A330 size gave Airbus edge over Boeing - WSJ (76.53 )

WSJ reports govt contracting documents show that the U.S. Air Force preferred the size and capability of aerial refueling tankers offered by NOC and the parent of Airbus, giving the two an edge in winning a high-profile $40 bln contract over BA. The Air Force also had concerns about Boeing’s costs for early development work and about its past program management, according to Air Force documents reviewed by the WSJ. “I am confident that Northrop Grumman will deliver within the cost, schedule and performance requirements of the contract because of their past performance and the lower risk of their cost/price proposal,” wrote Sue Payton, the senior U.S. Air Force contracting official, in a 20-page memo justifying the selection of the Northrop team.
08:19 MCS prelim $0.06 vs $0.05 First Call consensus; revs $86.0 mln vs $84.14 mln First Call consensus

08:18 BoE says unaware of any UK bank problems as HBOS hit - Reuters.com

Reuters.com reports the Bank of England said it isn’t aware of a problem at any British bank, in a rare response on Wednesday to mkt speculation that HBOS or another big name faced trouble as the financial mkt crisis deepens. “No meetings have taken place or been scheduled to discuss problems with any institution in the UK,” a BoE spokesman said. HBOS, Britain’s biggest mortgage lender through its Halifax brand, also dismissed the speculation, saying it had an “exceptionally strong balance sheet” and continued to access wholesale funding. Its shares slumped as much as 17% earlier Wednesday.
08:18 NCC National City reports expected Visa IPO gain; expects 1Q08 pre-tax cash gain of approx $450 mln (8.72 ) -Update-

Co reports that it expects to report a 1Q08 pre-tax cash gain of approx $450 mln on the partial redemption of its equity interest in Visa (V). This redemption is anticipated to approximate 33% of the corporation’s ownership interest in Visa. In addition, the NCC expects to reverse approx $240 mln of previously established indemnification liabilities related to Visa (V) litigation. As a result, NCC’s 1Q08 results are expected to benefit from these events by approx $450 mln after-tax, equivalent to $.71 per diluted share, with a corresponding benefit to Tier I capital of approximately 30 basis points.
08:17 HIL Hill International: 4Q07 preview; ample new international awards should fuel growth - Morgan Joseph (12.05 )

Morgan Joseph says HIL is expected to report 4Q07 (Dec) results on Wed, March 19. Firm’s 4Q07 EPS est of $0.13 compares to $0.11 last year and the Street consensus of $0.13. Anticipated Y/Y earnings improvement should be driven by high 20% net rev growth and margin improvement, offset somewhat by a higher share count. On the call, firm will be looking for commentary on the sustainability of growth in the middle eastern markets, the health of the domestic market, and any updates on the acquisition pipeline. They expect total rev of $80.4 mln, up 19.5% on higher levels of Project Management, particularly in the Middle Eastern markets, as well as incremental revenues from acquisitions. Firm anticipates operating margins to increase 180 bps to 10.8%, reflecting an improved mix as well as better leverage and cost containment of SG&A.
08:17 FCSX FCStone upgraded to Outperform from Market Perform at BMO Capital (31.00 )

08:16 MELA Electro Optical Sciences initiated with a Buy at Jesup and Lamont- tgt $8 (4.49 )

08:14 TI Telecom Italia says has no capital hike plan - DJ (20.85 )

08:13 GAS NICOR reaffirms guidance in 8-k slides, sees FY08 EPS $2.20-2.40 vs $2.41 First Call consensus (33.41 +0.54)

08:11 MBWM Mercantile Bank upgraded to Buy from Hold at Stifel- tgt $15- based on valuation (11.22 )

08:10 China won’t impose tax on stock, bond gains, Xinhua says- Bloomberg

08:08 WERN Werner Enterprises updates guidance in 8-k for JPMorgan conference; expects Q1 2008 EPS will be substantially lower than Q1 2007 (18.50 +0.43)

From today’s 8-k, co says “although the first two months were profitable, we expect that our Q1 2008 EPS will be substantially lower than our Q1 2007 EPS. There are several factors that are causing this quarter to be very challenging: The freight market continues to be difficult. Load counts began at a very low level in January 2008, below load count levels of the previous five years… Fuel prices have been rising rapidly and this week reached $1.39 per gallon higher than the same time a year ago… Q1 2008 winter weather conditions were generally worse than normal compared to a milder than normal first quarter 2007.” (Note co’s FY07 EPS was $1.06 and FY08 First call consensus is $1.07)
08:07 GTY Getty Realty upgraded to Hold at Stifel (15.41 )

Stifel upgrades GTY to Hold from Sell saying yesterday they downgraded GTY to Sell yesterday at $26.96, soon after the release, the shares dropped 43% to yesterday’s close at $15.41 (compared with a 4.8% rise in the MSCI U.S. REIT index), a level that they believe represents a relatively safe assessment of liquidation value for GTY.
08:06 WIRES On The Wires

Motorola (MOT) announces that Swisscom, through its Hospitality Services subsidiary, has signed a distribution agreement to deploy mT2a PowerBroadband system in partner hotels across Europe and North America… Marathon Oil (MRO) announces that the co will convert to 100 percent ethanol blended fuel at 16 of its Midwest terminals beginning May 1, 2008… GTSI Corp (GTSI) announces that it has been awarded a Blanket Purchase Agreement from the Administrative Office of the U.S. Courts, which supports the U.S. Courts of Appeals, U.S. District Courts and Bankruptcy Courts… BioSante Pharmaceuticals (BPAX) announces that it has initiated a new Phase III safety and efficacy trial of LibiGel in the treatment of female sexual dysfunction, specifically, hypoactive sexual desire disorder.
08:05 GRRF China Grentech: Overlooked, misunderstood, and undervalued; poised for significant earnings growth in 2008 - Susquehana (4.20 )

08:05 ETFC E*TRADE reports monthly activity for Feb 2008; customer cash and deposits increase by nearly $1 bln (3.61 ) -Update-

Co releases its monthly activity report for February. Customer cash and deposits increased by nearly $1 bln in February, representing the third consecutive monthly increase. Total retail customer assets, which includes customer cash and securities holdings, declined 1.7% month over month to $171 bln. This decline was the net result of an increase in customer cash balances, offset by a decline in the value of customer securities holdings. ETFC generated 43,000 net new accounts in the month - more than double Jan’s growth. The growth in net new accounts was driven by continued strength in new account openings and a reduction in attrition levels. End of period retail accounts totaled 4.8 mln, up 0.9% month over month and 6.1% year over year. Total Daily Average Revenue Trades decreased 17% month over month.
08:05 RTLX Retalix misses by $0.05, reports revs in-line; guides FY08 revs above consensus (13.67 )

Reports Q4 (Dec) loss of $0.05 per share, excluding non-recurring items, $0.05 worse than the First Call consensus of ($0.00); revenues fell 2.3% year/year to $55.2 mln vs the $55.6 mln consensus. Co issues upside guidance for FY08, sees FY08 revs of to excceed $232 mln vs. $231.00 mln consensus; co sees non-GAAP net income to exceed $15 mln.
08:03 ABAX Abaxis initiated with a Neutral at Jesup and Lamont- tgt $27 (23.95 )

08:03 RTLX sees FY08 revs to exceed $232 mln vs $231.00 mln First Call consensus

08:03 S&P futures vs fair value: -6.2. Nasdaq futures vs fair value: -8.2.

A modestly lower open is expected as investors take some profits after yesterday’s massive gains. Earnings news has been mostly better than expected, which is helping to limit the selling interest. Morgan Stanley (MS), Adobe Systems (ADBE), Darden Restaurants (DRI) and General Mills (GIS) all beat their earnings estimates.
08:03 RTLX prelim ($0.05) vs $0.00 First Call consensus; revs $55.2 mln vs $55.60 mln First Call consensus

08:02 SOL ReneSola reports Q4 earnings per ADS of $0.34 vs $0.27 single estimate; reports revs up 197.6% yr/yr to $96.0 mln vs $94.0 mln single estimate (10.56 )

Co sees Q1 gross margins stable with expected production of 62 MW. Co maintains annualized ingot production capacity target of 645 MW by end of Y08. Co sees Y08 production output of a minimum of 300 MW with minimum annual revs of $480 mln.
08:02 SIRT Sirtris Pharma announces first US patent issued on class of SIRT1 activators (10.75 )

The co announces that the United States Patent Office issued to Sirtris the first patent covering a broad class of compounds that activate the enzyme SIRT1. Several Sirtris compounds–or new chemical entities –from this class lower glucose and improve insulin sensitivity in preclinical models of Type 2 Diabetes. The patent covers the first NCE that Sirtris plans to take into a human clinical safety trial in the first half of 2008.
08:02 MRK Merck: Supplemental application for GARDASIL designated priority review by the U.S. FDA for use in women 27 through 45 (43.19 )

Co announces the FDA has accepted, and designated for priority review, the supplemental Biologics License Application for GARDASIL for the potential use in women aged 27 through 45. A priority designation is intended for products or indications that address unmet medical needs.
08:01 SBAC SBA Comm agrees to acquire certain towers from TowerCo; anticipates transaction to be accretive to equity free cash flow this year (28.71 )

The cos announce that they have entered into an agreement under which it is anticipated that SBA will acquire up to 430 wireless communications towers owned by TowerCo for up to $193.5 mln. The specific number of towers and final purchase price will be determined at closing. The transaction, subject to customary closing conditions, is expected to close on or about May 30, 2008. The towers are located throughout the U.S and are currently occupied by approximately 1.5 wireless telephony tenants per tower. SBA anticipates that the transaction will be accretive to equity free cash flow per share this year.
08:00 GHL Greenhill announces the appointment of Richard Lieb as the new CFO; replaces John Liu who resigned to take a position with a client of the firm (69.54 )

08:00 BSC Bear Stearns: Joseph Lewis and former BSC CEO Jimmy Cayne are quietly searching for a white knight - NY Post (5.91 ) -Update-

NY Post reports billionaire Joseph Lewis and former Bear Stearns chief Jimmy Cayne are quietly searching for a white knight to top the $276 mln takeover offer by JPM for the iconic brokerage co, according to sources familiar with the matter. However, many Wall Street insiders are calling the duo’s efforts nothing more than a pipe dream. The two friends, each of whom has lost over $1 billion in Bear’s collapse, have contacted several private-equity cos, including J.C. Flowers and Kohlberg Kravis Roberts, as well as several overseas banks including BCS, HBC, CS and RBS, sources said. They hope to persuade a rival bidder to at least make a preliminary offer to buy Bear in order to squeeze more out of JPMorgan chief Jamie Dimon. Sovereign wealth funds in the Middle East and Chinese bank Citic, which has already examined Bear’s businesses and declined to take an earlier stake yesterday, have also been contacted, sources said.
07:58 CFSG China Fire & Sec Grp: Accelerated construction in nuclear power industry presents opps for CFSG - Susquehanna (7.23 )

07:58 PODD Insulet downgraded to Market Weight from Overweight at Thomas Weisel (13.26 )

07:57 DT Deutsche Telekom sees German fixed-line FY revenues down 4-6% year-on-year - Forbes (18.00 ) -Update-

Forbes reports the co expects a 4-6% decline in revenues in its German fixed-line operations year-on-year in 2008, board member and head of fixed-line operations Timotheus Hoettges said during a conference call with journalists. He said the German telecoms incumbent expects EBITDA in the segment to decrease by 5-8% year-on-year. He said revenues and Ebitda will stabilize by 2010. Hoettges said Deutsche Telekom is still seeking to cut costs in the segment by 1 bln eur this year, of which 900 mln eur will be invested in customer acquisition. He added the company is targeting 1.6 mln new broadband internet customers this year, to bring its market share to some 45%. Hoettges said Deutsche Telekom is targeting a market share of 73-75% in German land lines at year-end. (Related stocks: TI, VOD, FTE)
07:57 BSC Bear Stearns: Wilbur Ross in CNBC interview notes that if BSC walks away from JPM deal, JPM has right to buy BSC’s headquarters for $1.2 bln (5.91 ) -Update-

Ross says the building clause is the crown jewel option, noting that the building is worth about $1.5 bln or more. Says in theory shareholders still have to vote the deal through, and his guess about the BSC stock premium is that it is related to speculation that somehow they’ll find a way to undo the deal. Says he doesn’t think this is practical because of the $30 bln Fed back up and crown jewel option (building clause).
07:56 MNST Monster Worldwide: Color on quarter (25.70 ) -Update-

Deutsche cuts their tgt on MNST to $21 from $27. Firm says that while MNST last night indicated that opex will be higher than Street ests (thereby lowering EPS), firm notes that a potential global recruitment slowdown may still be ahead, representing yet another issue for 2008 earnings in coming quarters. Firm believes that future quarterly operating expenses may have to be adjusted higher due to Monster’s ongoing re-investment. Moreover, they are concerned that US weakness may eventually spill over into the UK and European markets. Firm is lowering their 2008 EPS est from $1.57 to $1.25, with no change to revenue growth at this point. Firm highlights that the Street estimates remain very high (higher than consensus), and potentially lower estimate revisions may place additional pressure on the stock… Wachovia says that although MNST explicitly did not comment on revs, they’re clearly cognizant of the consensus estimate. Firm thinks the expense update implies a reduction to 1Q08E consensus EPS ($0.30) of ~$0.10. Firm has reduced their 1Q08E EPS to $0.19 from $0.30. Firm continues to believe that the U.S. online recruitment market is slowing more quickly than the market anticipates and that Monster is losing share to social networking sites, niche players, sponsored search, etc. While they believe MNST’s investment in the LT viability of the brand is critical, firm thinks the stock will be under pressure given EPS risk though Int’l remains a source of upside for now… Robert Baird is reducing their 1Q08 EPS est to $0.20, below their prior $0.31 estimate and $0.30 consensus. For all of ‘08 firm reduces their EPS estimate from $1.37 to $1.30 (consensus is $1.67), but are increasing their ‘09 estimate slightly from $1.45 to $1.49 (consensus is $1.99) to reflect more favorable FX rates.
07:54 HD Home Depot downgraded to Underperform from Market Perform at Morgan Keegan (27.19 )

07:52 SCANX Early pre-market gappers

Gapping up: FMCN +12.3%, PRXI +11.1%, ADBE +6.1%, AIR +5.3%, MS +3.8%, BSC +3.2%, GFI +2.8%, CAH +2.5%, MA +1.9%, GOLD +1.8%, OI +1.7%, AUY +1.3%, GLD +1.2%, ACIW +1.1%… Gapping down: SINT -18.4%, ERIC -11.2%, DT -10.1%, NOK -7.8%, PEIX -7.3%, MNST -6.7%, JRCC -5.9%, MTG -5.4%, HWAY -4.5%, SI -3.6%, CCL -3.6%, FTE -3.3%, BCS -3.3%, VOD -3.2%, LEH -3.1%, RTP -3.1%, GIS -2.7%, BHP -2.3%, PCLN -2.2%, C -2.0%, BPL -1.1%.
07:49 WSJ discusses Wall Street cos borrowing from the Fed facility

WSJ reports the Federal Reserve’s emergency decision last weekend to extend borrowing to investment banks was designed to stem a worsening credit crisis ravaging the financial markets. The question is: Will it work? Wall Street firms were reluctant to borrow from the program Monday out of concern it could be seen as a sign of weakness, if their identities became known. Late yesterday, LEH borrowed a small amount, according to a person familiar with the transaction, and GS is likely to do the same before the end of the week. Because Goldman Sachs is seen as financially stronger than some of its counterparts, that could diminish any stigma and encourage other cos to step forward.
07:48 TXT Textron to reaffirm FY08 and multi yr outlook at analyst meeting today (54.90 )

Outlook was originally issued on 2/7/08.
07:47 PMI PMI Group resumed with a Neutral at Piper Jaffray (5.32 )

07:47 VNUS VNUS Medical Tech initiated with a Buy at Pacific Growth (17.44 )

07:46 HOLX Hologic: Hearing initiated with a Neutral at tier 1 firm (55.90 )

07:46 FMCN Focus Media: Color on quater (37.41 )

Citigroup says FMCN once again delivered where it counts most: revs, earnings and guidance all materially above Street. The new “divisional” guidance significantly improves visibility into the business, a needed positive development. The fundamentals are very strong but market concerns persist; if the chairman would buy back a big slug of shares, this stock would immediately re-rate to be in-line with peers, in firm’s view. Finally, mgmt commented they expect 2009 to be another year of +50% YoY growth even post the Olympic spending fall-off. Firm views FMCN as a true franchise name, and it remains their Top New Media Pick… ThinkEquity says better-than-expected Q4 results and 2008 outlook underscore that the broader Chinese advertising market and, more specifically, Focus Media’s positioning within it, both remain healthy. Firm believes the fundamentals of the overall co trump any “unwarranted” skepticism related to Jason Jiang’s transition or near-term noise from its mobile business. Trading at a forward valuation (17x) at less than half its projected growth, and with limited exposure to a weak global “consumer”, firm believes shares of FMCN represent one of the most compelling long-term global growth stories in digital media. Firm increases their FY’08 revenue/non-GAAP ests from $857M/ $2.09 to $903M/$2.15.
07:44 BLUD Immucor initiated with a Positive at Susquehanna (21.66 )

07:42 IMCL Imclone upgraded to Buy from Hold at Citigroup- tgt raised to $52 from $49- based on favorable risk/reward profile ahead of the FLEX data release at ASCO ‘08 in early June (43.10 )

07:41 Toshiba cuts profit forecast on weak flash-memory chip prices - WSJ

WSJ reports Toshiba cut its profit forecast for the year to March by about one-third, citing weakness in flash-memory chip prices and losses from pulling out of the HD DVD business. The global household name in consumer goods warned it now expects its net profit will be 125 bln yen, down from the 180 bln yen previously forecast. It also slashed its operating profit outlook to 230 bln yen from 290 bln yen and trimmed its revenue outlook to 7.7 trillion yen from 7.8 trillion yen for this fiscal year. While problems in the HD DVD segment had been well-flagged, the weakness in its chip operations may raise investors’ eyebrows. “Our semiconductor business has seen a significant decrease in operating income due to a larger-than anticipated declines in sales prices of NAND flash memory,” Toshiba said in a statement.
07:39 MS Morgan Stanley beats by $0.42, beats on revs (42.86 )

Reports Q1 (Feb) earnings of $1.45 per share, $0.42 better than the First Call consensus of $1.03; revenues fell 16.7% year/year to $8.32 bln vs the $7.19 bln consensus. The annualized return on average common equity from continuing operations was 19.7% in the current quarter, compared with 30.9% in the prior year. Record equity sales and trading net revenues were $3.3 bln, an increase of 51% from last year’s first quarter. Other sales and trading included net losses of approximately $1.1 bln due primarily to the marking to market of loans as well as closed and pipeline commitments. The Firm also announced today that the Morgan Stanley Board of Directors had approved the appointment of Ken deRegt as the Firm’s new Chief Risk Officer. “Despite turbulent markets, Morgan Stanley achieved strong performance across many of our businesses this quarter - delivering a Firmwide ROE of 20% - and continued taking important steps to position the Firm for growth as we move forward in 2008. We achieved strong results across our equities and fixed income sales and trading businesses this quarter, as we effectively capitalized on market opportunities and aggressively managed our positions. We also delivered another solid quarter in investment banking and wealth management. While many of our businesses are facing challenging market conditions that we expect to continue in the months ahead, we are satisfied with how Morgan Stanley navigated the ongoing market turbulence. Our people remain intensely focused on continuing to serve our clients, building out our global franchise and executing our growth plans in order to create long-term value for Morgan Stanley’s shareholders.” At quarter-end, the co’s trading VaR was $100 mln, and the aggregate trading and non-trading VaR was $107 mln. The quarter’s effective tax rate from continuing operations was 30.0% , down from 32.5% a year ago. Total capital as of February 29, 2008 was $198.2 bln, including $43.9 bln of common shareholders’ equity, preferred equity and junior subordinated debt issued to capital trusts. Book value per common share was $29.11, based on 1.1 bln shares outstanding.
07:38 VIT VanceInfo Tech: Raising estimates after visit to Beijing - Susquehanna (5.35 )

07:37 AMTD TD Ameritrade: Signs of slowdown evident, expecting more to follow - FBR (16.52 ) -Update-

Friedman Billings says February customer metrics showed a meaningful slowdown in trading activity, although net client inflows excluding acquisitions appeared positive. With market turmoil and macro headwinds continuing into March, however, firm is cautious about the outlook for retail investor activity. Given their expectation of slowing customer engagement and the asset sensitivity inherent to TD Ameritrade’s business model, firm sees little upside potential in the near term.
07:36 YHOO Yahoo: Alibaba is in advanced talks with investors to finance Alibaba’s purchase of Yahoo’s stake - WSJ (27.66 )

WSJ reports Alibaba is in advanced talks with investors to finance Alibaba’s purchase of Yahoo’s stake in an effort to expand its mgmt independence should MSFT ’s bid prevail, according to people close to the situation. While it’s not pushing for a Yahoo sale, Alibaba believes that a change in control at Yahoo would trigger an opportunity for it to buy the stake under the companies’ agreements, though that could be subject to interpretation. The talks signal Alibaba’s belief that Microsoft could still succeed in its quest to buy Yahoo, which owns stakes in Internet cos in Japan, South Korea and China, where Alibaba is the third largest Internet search co. Alibaba’s interest in purchasing the Yahoo stake could also represent a new wrinkle in any negotiations. For Microsoft, gaining Yahoo’s Asia stakes was a key attraction when it made the bid Jan. 31, an offer now valued at about $42 billion… At the core of Alibaba’s move is an effort to keep Chinese management control of Alibaba, say people familiar with the plan… Alibaba’s efforts are bad news for Microsoft. While selling off Yahoo’s stake would fetch a chunk of cash, the software maker would lose a foothold in an increasingly important mkt.
07:36 ADBE Adobe Systems: Color on quarter (31.88 )

Lehman says ADBE’s 1Q08 beat yesterday was primarily due to better than expected rev from CS3 and higher operating margins. Firm notes ADBE gave strong Q2 guidance including operating EPS in the range of $0.45-0.47 vs. firm’s prior est and consensus of $0.44 and rev guidance of $855-885 mln which includes their est and consensus. Co also reaffirmed its prior FY08 targets for rev up 13% and operating margins of 39% and introduced operating EPS guidance of $1.86-1.92. This compares to firm’s FY08 est of $1.85 (vs. prior $1.80) which they raised due to the outperformance in 1Q08 and impact from more aggressive share repurchases… Deutsche says that while ADBE’s beat was partly fueled by FX and $1.25b in share repurchases, business momentum from both CS3 and Acrobat remains healthy and margins are at record highs. We believe the momentum, lowered bar in the back half, and meaningful product cycles will drive share performance in ‘08. Firm is expecting product cycles across Acrobat and Creative Solutions this year and believe both represent meaningful uplift potential. Firm believes there are reasons to think the next Creative Solutions release could drive more meaningful uplift given the enhanced creation features around Video, Mobile, and AIR. Firm raises FY08 EPS to $1.90 from $1.85… Robert Baird says seasonally, the second and third quarters are expected to be flat before a higher fourth quarter. New product launches (no details given) are expected to offset soft summer seasonality. Based on prior cycles, they would expect Acrobat 9 to ship in mid-2008, with CS4 following in the beginning of 2009. Firm raises their FY08 EPS est to $1.90 (was $1.82). The primary factors driving the change are the share buyback (adding $0.05) and the first-quarter upside (adding $0.03). Firm is also raising their FY09 EPS est to $2.20 (was $2.10).
07:34 ATU Actuant beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus; raises Y08 guidance (29.74 )

Reports Q2 (Feb) earnings of $0.43 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.41; revenues rose 17.3% year/year to $400 mln vs the $385.2 mln consensus. Co issues guidance for Q3, sees EPS of $0.53-0.57 vs. $0.53 consensus; sees Q3 revs of $435-445 mln vs. $419.72 mln consensus. Co raises guidance for FY08, sees EPS of $2.00-2.07, compared to previous guidance of $1.95-2.05, vs. $2.01 consensus; sees FY08 revs of $1.67-1.69 bln, compared to previous guidance of $1.625-1.660 bln, vs. $1.64 bln consensus.
07:34 CHRS Charming Shoppes misses by $0.01, misses on revs; guides Q1 EPS below consensus, revs below consensus (5.31 )

Reports Q4 (Jan) loss of $0.20 per share, excluding non-recurring items, $0.01 worse than the First Call consensus of ($0.19); revenues fell 10.8% year/year to $784.9 mln vs the $795.6 mln consensus. Co issues downside guidance for Q1, sees EPS of ($0.04)-($0.06), excluding non-recurring items, vs. $0.04 consensus; sees Q1 revs of $720-730 mln vs. $749.85 mln consensus.
07:33 CHRS sees Q1 ($0.04)-($0.06), ex items vs $0.04 First Call consensus; sees revs $720-730 mln vs $749.85 mln First Call consensus

07:31 CHRS prelim ($0.20), ex items vs ($0.19) First Call consensus; revs $784.92 mln vs $795.56 mln First Call consensus

07:31 ATU sees FY08 $2.00-2.07 vs $2.01 First Call consensus; sees revs $1.67-1.69 bln vs $1.64 bln First Call consensus

07:31 RGNC Regency Energy announces Byron Kelley as Chairman, President and CEO (26.66 +0.0

The Board of Directors of the managing general partner of RGNC announced the appointment of midstream industry veteran Byron Kelley as chairman of the board, president and CEO effective April 1. Kelley - who starts upon the planned retirement of Regency’s current chairman, president and CEO, James W. Hunt - brings more than 35 years of experience in operational and commercial roles with gas gathering, intrastate pipeline and interstate pipeline companies in the southeastern United States.
07:31 MS prelim $1.45 vs $1.03 First Call consensus; revs $8.32 bln vs $7.19 bln First Call consensus

07:30 ATU prelim $0.43 vs $0.41 First Call consensus; revs $400 mln vs $385.23 mln First Call consensus

07:30 IHS IHS profiled in New America section of IBD (66.38 )

IBD reports the co helps the U.S. Air Force manage its inventory of parts to keep fighters aloft. It helps oil cos figure out where to sink wells and how to protect employees in unstable regions. It advises large plant operators on the myriad environmental regulations… “It’s our belief that any company that has a major asset decision to make — $50 million and above — literally needs our information insight to make that decision,” said Jerre Stead, IHS chairman and chief executive… IHS focuses on four broad categories: energy, product life cycle, security and environment… The co says there are more acquisitions in the pipeline. “The company’s record suggests that most, if not all, future purchases will quickly be accretive to earnings,” Argus Research analyst Wendy Walker wrote in a client note. More than half of the co’s revenue comes from the energy sector. That entire sector is buoyed right now by record-high oil prices. But even if oil prices come down, the co says the types of services it offers remain in demand, or become more critical. It also says it’s protected somewhat against economic slowdown in the U.S. since more than half of its revenue comes from overseas operations… KeyBank Capital Markets analyst Anurag Rana says there’s potential for margin expansion.
07:30 AMSC Am Superconductor receives new orders for wind turbine electrical components from Canada and China (24.74 )

Co announces that it has received new orders for wind turbine core electrical components and full wind turbine electrical systems from companies in Canada and China that are in the process of adopting and scaling up manufacturing of wind turbines designed by AMSC’s wholly owned subsidiary, AMSC Windtec. Dongfang Steam Turbine Works has placed its first order for complete electrical systems for four 2.5 megawatt wind turbines it plans to manufacture and test in early 2009. AAER has placed an order for core electrical components for an additional 20 of the 1.5 MW wind turbines it is currently scaling up to manufacture under a license from a third party.
07:28 AMGN Amgen: Rodman & Renshaw says AMGN’s Renal EPO franchise falls under the shadow of Mircera (41.21 )

Rodman & Renshaw says on Tuesday Roche filed a brief to prevent a permanent injunction on Mircera. Based on Judge Young’s past decisions on patent infringement cases, firm does not believe the court will rule in Roche’s favor. If in the rare instance the court rules in Roche’s favor, it would be harmful both to AMGN’s Epogen and Aranesp and Johnson & Johnson’s (JNJ) Procrit in the dialysis and pre-dialysis markets.
07:28 LEVP Lev Pharmaceuticals: Rodman & Renshaw believes Cinryze may be ultimately approvable in a reasonable timeframe; will be the first human plasma-derived C1 inhibitor to market (0.95 )

Rodman & Renshaw says for the first time, LEVP presented positive data from its pivotal U.S. Phase III trial of C1 esterase inhibitor (C1 INH, CinryzeTM), for the prophylactic treatment of hereditary angioedema. The pivotal CHANGE study (C1 inhibitor in Hereditary Angioedema Nanofiltration Generation evaluating Efficacy) is a Phase III trial of 24 week duration. Firm notes 10% to 20% of the HAE population suffer from the severe form of HAE that may require prophylaxis. Firm believes Cinryze may be ultimately approvable in a reasonable timeframe, and will be the first human plasma-derived C1 inhibitor to market.
07:27 PC and Foundry checks mostly stable over past month; demand concerns remain - FBR

Friedman Billings has updated their PC supply chain and chip production checks. On the PC front, firm’s recent Q1 unit build forecast (-10.9% QOQ) is largely unchanged from their prior-month Q1 build forecast (-11.2% QOQ). This is actually tracking in line to a couple of points worse than typical Q1 seasonality. We believe that chip firms are reducing 2Q build plans from overly optimistic levels to levels that are now flattish QoQ. Separately, firm has new Q1 and Q2 chip production channel checks that are also unchanged in aggregate vs. firm’s checks from several weeks ago. These checks show that new production forecast cuts by Marvell (MRVL are fully offset by production forecast increases at graphics chip makers. While it is still early in the quarter, Q2 seems to be trending down a few points sequentially, similar to firm’s prior checks but worse than what firm has typically seen. Firm’s favorite opportunities for meaningful share price appreciation over the coming year include BRCM, FCS, ONNN, MSCC, IRF, and ATML, among others.
07:27 NPD China Nepstar Chain Drugstore reports Q4 diluted EPS of RMB0.29 vs RMB0.11 in yr ago period; reports revs up 9.5% yr/yr to RMB524.1 mln (11.30 )

Co sees Q1 revs of approx RMB470 mln to RMB500 mln. Co sees Q1 net income of approx RMB40 mln to RMB42 mln. Co sees Y08 revs of approx RMB2.4 bln to RMB2.6 bln. Co sees Y08 net income of approx RMB330 mln to RMB380 mln.
07:27 PRICE Filings, Offerings, Pricings and IPOs

Filings: James River Coal (JRCC) files for a 3 mln share common stock secondary offering… GlobalStar (GSAT) files for a $700 mln mixed shelf offering… Offerings: BPZ Resources (BZP) announces it has commenced a 2 mln share common stock secondary offering… NovaGold Resources (NG) announces a $100 mln convertible notes offering supplement to a prospectus dated April 16, 2007… IPOs: Visa (V), the world’s largest credit card network, priced its 406 mln share IPO at $44/share, above the forecast range of $37-$42.
07:26 HLIT Harmonic: Concerns regarding DISH rollout unfounded; current valuation provides attractive entry point - Merriman (8.39 )

Merriman believes concern for HLIT’s business regarding DISH Network’s announcement of a launch anomaly for its HD satellite on March 14 has been overblown and view the current valuation for the rapidly growing and consistently executing co as very attractive. DISH, an 18% HLIT customer, confirmed after the close yesterday that its HD programming expansion is still on schedule for the next few months and for the year 2008. Firm continues to view HLIT shares as extremely attractive, trading at 12.0x firm’s FY08 EPS est despite continued execution, beating ests and growing revs 26% in 2007.
07:26 MNST Monster Worldwide downgraded to Neutral from Overweight at J.P Morgan (25.70 )

07:26 TSCM TheStreet.com: Anticipating the impact of a bear stock market and weakening financial sector - Merriman (8.37 )

Merriman is lowering their ests in anticipation of slower growth in the subscription segment and lower sell-through in the online advertising segment. Firm’s est cuts were prompted by the stock market downturn, which is likely to have a negative impact on subscription sales. Also, as firm saw in 3Q07, turbulence in the financial sector can disrupt the timing and size of advertising campaigns and budgets. Even with firm’s lowered ests, the stock appears cheap relative to growth and long-term opportunity. Reducing FY08 rev, adjusted EBITDA and adjusted EPS ests to $83.3 mln, $21.4 mln and $0.57 (prior ests of $87.6 mln, $24.6 mln and $0.66).
07:25 Recommend investors use recent weakness to build positions in select refining stocks- Friedman Billings

Friedman Billings notes they predicted that refining margins would average 20% below comparable prior-year levels due to increasing gasoline supplies. Inventories rose more than most expected, pressuring crack spreads and adding to investor fears that margins will stay low for the foreseeable future. However, the firm expects the supply/demand balance to improve as the summer (peak gasoline demand) driving season approaches. The stocks have declined by an average of 30% year to date and, they believe, currently reflect overly negative outlooks, especially for Outperform-rated HOC, FTO, and VLO, which process lower-quality, lower-cost crude oils and have less leverage to refining margins. The firm recommends that investors use the stocks’ recent weakness to build positions in these names.
07:25 NGPC NGP Capital Resources cuts dividend by 22% to $0.40 from $0.515 (16.74 )

07:24 DT Deutsche Telekom reiterates 2008 outlook - DJ (18.00 )

Stock is trading at $16.10.
07:23 FNM Fannie, Freddie have won capital relief, sources say - Reuters.com (28.22 )

Reuters.com reports the regulator for the cos will on Wednesday announce that the two U.S. mortgage finance cos have won relief from stringent capital rules and so can pump about $200 bln into a shaky mortgage mkt, sources familiar with the plan said on Tuesday. The Office of Federal Housing Enterprise Oversight will hold a joint press conference with Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron at the regulator’s Washington offices to announce the deal at 9 a.m. EST. Under the agreed-to plan, the two cos will be permitted to use some of their capital reserves to soak up mortgage assets while pledging to raise equity capital — probably in the form of preferred stock — in the near future. A source familiar with the deal said the cos would be granted on the order of $200 bln in new mortgage-buying power, which amounts to a one-third reduction in their excess capital. (FRE)
07:21 RADN Radyne downgraded to Hold at Roth Capital- tgt cut to $9.50 (8.57 )

Roth Capital downgrades RADN to Hold from Buy and lowers their tgt to $9.50 from $13, following Q407 results that missed firm estimates (pre-announced in early February) and remain disappointed in yesterday’s call that there was no clear development in the strategic alternatives.
07:20 BSC Bear Stearns: NYC to probe if Bear Stearns deceived investors - Reuters.com (5.91 ) -Update-

Reuters.com reports New York City’s comptroller, who helps oversee the city’s pension funds, on Tuesday said he will investigate whether the failure of Bear Stearns was due to miscalculation or deception, which could trigger a lawsuit to recover losses. The drop in Bear Stearns’ share price has resulted in a loss for the city’s public pension funds of about $10 mln, City Comptroller William Thompson told Reuters in a phone interview. “I think a lot of people are going to be taking a look. … Was there some deception in there or was this just a miscalculation?” Thompson, a Democrat, said when asked about a possible lawsuit against Bear Stearns.
07:20 JOEZ Joes Jeans initiated with a Buy at Brean Murray- tgt $2 (0.97 )

Brean Murray initiates JOEZ with a Buy and a $2 tgt saying they believe the co has a highly differentiated brand identity with a number of material top- and bottom-line drivers. The firm says the co’s denim looks, with a focus on fit and a sophisticated edge, have crafted what they view as a sustainable niche in the basic denim category.
07:17 ABT Abbott Labs: Takeda to buy Abbott stake in U.S. venture, source says - Reuters.com (53.82 ) -Update-

Reuters.com reports Takeda Pharmaceutical, Japan’s biggest drug maker, plans to spend some $5 bln to buy out ABT in their 50-50 U.S. venture, a source briefed on the matter said on Wednesday. The deal, which would strengthen Takeda’s U.S. sales operations, would be the biggest overseas acquisition by a Japanese drug co and follow Eisai’s purchase of cancer specialist MGI Pharma this year for $3.9 bln. With Japan’s drug mkt showing little growth, the nation’s largest pharmaceutical cos are looking to boost their presence in the world’s biggest drug mkt as well as replenish their pipelines.
07:13 EMKR Emcore comments on recent trading activity; to continue substantial revs growth and improve profitability (6.78 )

Co responds to a report about the co. “We feel, however, that this particular posting required a response because we believe that its conclusions are materially inaccurate and seriously misleading. EMCORE is known worldwide as a technology leader and innovator. We are well positioned in our core markets to continue substantial revenue growth and to improve profitability, and we stand by our products, our customers and our markets. Government securities regulators have been asked to investigate whether improper relationships exist between this blog and recent short selling of our stock.”
07:12 GIVN Given Imaging initiated with a Positive at Susquehanna (15.15 )

07:07 Dollar falls on speculation housing slump to swell bank losses - Bloomberg.com

Bloomberg.com reports the dollar fell against the euro, erasing most of yesterday’s gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses. The currency weakened against the Japanese yen and the Swiss franc after Bank of America predicted the Federal Reserve will lower its target rate by another 75 basis points this year following a reduction to 2.25% yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing. “We’re approaching a dollar low, but we probably haven’t seen it yet. The market still expects the Fed to cut aggressively.”
07:07 BBG Bill Barrett upgraded to Outperform from Market Perform at Wachovia (44.95 )

07:05 WIRES On The Wires

Akorn-Strides, a JV that was formed by Akorn (AKRX) and Strides Arcolab, announces the approval of an ANDA for Fosphenytoin Sodium Injection USP, 100 mg/2mL and 500 mg/10mL… Sunrise Senior Living (SRZ) announces that it continues to work diligently to complete its 2006 Form 10-K and the NYSE has agreed to extend trading in the co’s common stock through the balance of the week… EMCOR Group (EME) announces that its Tucker Mechanical subsidiary has completed an extensive mechanical services project for the Yale School of Medicine’s Amistad Street building in New Haven, Connecticut.
07:05 CALLS Early Research Calls III

Upgrades: Merrill upgrades Buckeye Holdings (BGH 23.43) and Magellan Midstream (MGG 22.40) to Buy from Neutral… Merrill upgrades Enterprise Holdings (EPE 28.99) to Neutral from Sell… J.P Morgan upgrades Bunge (BG 95.49) to Overweight from Neutral… RBC upgrades National City (NCC 8.72) to Sector Perform from Underperform… RBC upgrades Seattle Genetics (SGEN 8.36) to Outperform from Sector Perform. Downgrades: Susquehanna downgrades priceline.com (PCLN 123.06) to Neutral from Positive.
07:04 GIS General Mills beats by $0.08, beats on revs; guides FY08 EPS in-line (58.20 )

Reports Q3 (Feb) earnings of $0.87 per share, excluding non-recurring items, $0.08 better than the First Call consensus of $0.79; revenues rose 11.7% year/year to $3.41 bln vs the $3.24 bln consensus. Co issues in-line guidance for FY08, sees EPS of $3.45-3.47, excluding non-recurring items, vs. $3.47 consensus.
07:04 LB LaBarge issues Q3 upside guidance (10.50 )

Co issues upside guidance for Q3 (Mar), sees EPS of $0.23-0.24 vs. $0.21 First Call single estimate; sees Q3 (Mar) revs of $70-72 mln vs. $65.47 mln single estimate. Co sees Q4 sales and EPS to be at least as strong as Q3 results.
07:03 GIS sees FY08 $3.45-3.47 vs $3.47 First Call consensus

07:03 INTU Intuit reports TurboTax unit sales through March 15 (27.06 )

Co announces the second of three unit sales updates for its fiscal year 2008 consumer tax products. Through March 15, total TurboTax federal units increased 15% over the same period last year.
07:02 GIS prelim $0.87 vs $0.79 First Call consensus; revs $3.41 bln vs $3.24 bln First Call consensus

07:01 LB sees Q3 EPS of $0.23-0.24 vs $0.21 single estimate; co sees revs of $70-72 mln vs $65.5 mln single estimate

07:00 LB sees Q3 results to significantly exceed last qtr and yr ago qtr

07:00 SIAL Sigma-Aldrich reaffirms guidance in 8-k slides, sees FY08 EPS $2.52-2.62 vs $2.59 First Call consensus (57.48 )

07:00 ECONX MBA Mortgage Applications -2.9% vs -1.9% prior

06:58 CAH Cardinal Health reaffirms guidance in 8-k slides, sees FY08 EPS $3.75-3.85 vs $3.79 First Call consensus (50.71 )

06:58 CHL China Mobile Q4 profit up 37%, beats forecasts- Reuters (71.56 )

Co reported net profit of 27.2 bln yuan ($3.85 bln), compared to 19.9 bln yuan in yr ago period, vs 27 analyst Reuters poll of 23.61 bln yuan. Co says rapid growth in China’s economy, rising consumer purchasing power and the development of the rural economy are driving demand for communication services. But some analysts believe restructuring of China’s telecoms sector may bring in increased competition and pressure for China Mobile, which dominates the world’s biggest telecoms arena.
06:56 CPB Campbell Soup updates guidance following the divestiture of the Godiva business (32.30 +0.70)

Co updates its FY08 sales and earnings guidance following the divestiture of the Godiva business. For FY08, the co expects its continuing operations to deliver sales growth in excess of its long-term target 3-4%, due in part to the favorable impact of currency and a 53rd week of sales in the fiscal year. Excluding items impacting comparability, the co expects EPS growth 5-7% from the fiscal 2007 adjusted base of $1.95, which is unchanged from previous guidance (this equates to FY08 EPS of $2.05-2.09 vs vs $2.06 First Call consensus).
06:49 CALLS Early Research Calls II

Upgrades: J.P Morgan upgrades International Coal (ICO 6.03) and Massey Energy (MEE 35.21) to Neutral from Underweight. Miscellaneous: Jefferies initiates Dawson Geophysical (DWSN 68.77) with a Hold and sets a $72 tgt, as they believe that robust demand for seismic in the shale plays should continue to fuel earnings growth, but at current levels shares appear fully valued… Merrill initiates Liberty Media Entertainment (LMDIA 22.0 with a Neutral… Thomas Weisel initiates Ciena (CIEN 29.86) with a Market Weight saying while Ciena has established itself as a leader in the $14 bln optical network infrastructure market, and is expanding its TAM through the acquisition of World Wide Packets, they believe the combination of decelerating organic growth and peaking gross margins should encumber the stock in the near to medium term…. Thomas Weisel initiates Infinera (INFN 10.54) with an Overweight saying they see INFN as a premier growth story in the early stages of its development with unique technology that is likely to lead to sustained competitive differentiation, increasing customer diversification and improving margins. The firm says with the stock having pulled back to below its IPO price and near-term results expected to exceed Street expectations, they believe the shares are attractive for growth-oriented investors.
06:47 NCC National City: Moody’s downgrades National City Bank’s SQ rating (8.72 )

Moody’s downgrades National City Bank’s servicer quality rating to SQ2 from SQ2+ as a Primary Servicer of second lien loans. Furthermore, Moody’s has removed the review for possible downgrade for the servicer quality rating. This rating action was prompted by Moody’s downgrade of the fundamental ratings of the servicer’s ultimate parent, National City Corporation, (senior to A3 from A2) and subsidiaries including its lead bank, National City Bank (financial strength to C+ from B- and bank deposits to A2 from A1) on March 13, 2008. The fundamental ratings remain on review for possible downgrade. Although the company has maintained for the most part servicing performance to date, Moody’s believes that recent events have the potential to moderately impact the investment and current resource levels in its servicing platform in the future. Consequently, National City’s servicing stability assessment was lowered to above average from strong.
06:45 CIT CIT Group: Moody’s downgrades CIT to A3, Prime-2 and continues review; ~$53 billion of debt securities affected (13.29 )

Moody’s places CIT Group Inc.’s ratings (senior unsecured A2; short-term Prime-1) on review for possible downgrade. The review reflects CIT’s reduced funding flexibility amidst severe credit market dislocations and expected weaker profitability stemming from higher borrowing and credit costs. Moody’s believes that the current credit market environment is challenging the strength of CIT’s liquidity profile to a degree not previously experienced by the firm. Unlike banks, CIT has no retail deposit base. However, the strength of CIT’s liquidity insurance (its funding alternatives in the event of market disruption) has been an important counterweight to the inherent shortcomings of its wholesale funding model. Moody’s is concerned that the reliability of CIT’s funding alternatives has been weakened.
06:44 BIDU Baidu’s big plans may bear fruit if it can overcome obstacles - WSJ (246.53 )

The Wall Street Journal reports investors in Bidu.com benefit from activities being launched this year — if the co can overcome some hurdles. The initiatives include an instant-messaging service and a customer-to-customer online auction platform. A service letting customers receive search results by phone is in the works. And Baidu has teamed up with Omniture (OMTR), a provider of online-business software, to help companies market in China, where the number of Internet users recently surpassed that of the U.S. But a vacancy in the CFO’s slot and lawsuits over Baidu’s music services are factors to take into account in weighing whether to invest. Analysts say Baidu needs to further diversify from a search-service provider into an integrated Internet co. There is reason to believe it can. Baidu has done a good job using its tech prowess to launch online-community sites ranging from discussion boards to social networks, the analysts say. The January launch of Baidu Japan is another concern. Colin Gillis of Canaccord Adams believes it won’t produce profit this year, “while expenses may be $20 million to $25 mln, and there is less of an edge for Baidu search with no MP3 search in Japan.”
06:33 CALLS Early Research Calls I

Upgrades: UBS upgrades Helicos BioSciences (HLCS 5.91) to Neutral from Sell… Wachovia upgrades Boardwalk Pipeline Partners, LP (BWP 22.0 to Outperform from Market Perform, following the $700 mln equity issuance to Loews that addresses BWP’s near-term equity requirements, in their view, and believe the partnership’s valuation should improve over time, as the market recognizes their ability to manage its financing needs and execute on its organic growth initiatives… Wachovia upgrades Countrywide (CFC 5.11) to Market Perform from Underperform, following reported February loan production of $25.6 bln, a 16.9% increase from January, refinance fundings of $19.5 bln, an increase of 29% from January, and loan servicing credit stats that were mixed… HSBC upgrades AstraZeneca (AZN 36.43) to Overweight from Neutral… JP Morgan upgrades Tyson Foods (TSN 16.56) to Neutral from Underweight… JP Morgan upgrades Sanderson Farms (SAFM 37.15) to Overweight from Neutral. Downgrades: JP Morgan downgrades Lamar Advertising (LAMR 34.80) to Underweight from Neutral… Merrill Lynch downgrades Getty Realty (GTY 15.41) to Sell from Neutral… JP Morgan downgrades Kraft (KFT 30.56) to Neutral from Overweight… JP Morgan downgrades Sara Lee (SLE 13.26) to Neutral from Overweight… Merriman downgrades Internap Network Services (INAP 6.12) to Neutral from Buy, following the co’s announcement they will restate 2007 results in which they will increase its ‘07 sales return allowance by $1-2 mln and thus believe INAP will most likely need to reduce 2008 guidance, specifically CDN revenue.
06:29 S&P futures vs fair value: -9.2. Nasdaq futures vs fair value: -14.3.
06:28 European Markets

FTSE…5557.00…-48.80…-0.9%. DAX…6355.60…-37.79…-0.6%.
06:28 Asian Markets

Nikkei…12260.44…+296.28…+2.5%. Hang Seng…21866.94…+482.33…+2.3%.
06:24 Nikkei share average rose 2.5%; Sensex ends up 204pts at 15,038

Japan’s Nikkei share average rose 2.5% on Wednesday as investors snapped up exporters such as Toyota Motor after a big interest rate cut in the U.S. helped ease concerns over demand in a key market for Japanese products. The benchmark Nikkei average ended up 2.5% or 296.28 points at 12,260.44, rising for a second straight day after hitting a 2-1/2-yr low of 11,787.51 on Monday. Hong Kong stocks gained more than 2% on Wednesday as the Federal Reserve’s hefty rate cut sparked widespread buying, with China Mobile leading blue chips, buoyed by its forecast-beating earnings. The benchmark Hang Seng Index closed up 2.3%, or 482.33 points, to end at 21,866.94… The Sensex opened with a bang at 15,326 - up 493 points - on positive cues from the global markets after the US Fed cut interest rates by 75 basis points. The index touched a high of 15,467 in opening trades. (Reuters, Business Standard)
06:24 Fall in banks snuffs out rally in European shares

European shares fell on Wednesday after most bank stocks surrendered early gains and a sell-off in the technology sector gathered steam following a results warning from Ericsson’s joint venture with Sony. By 0934 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,232.50 points, having risen earlier by as much as 1.1% after the Federal Reserve cut U.S. rates on Tuesday and two major Wall Street banks beat expectations with their earnings. London’s FTSE is off -1%, Germany’s DAX is down 0.7% and France’s CAC is lower by -0.4%. (Reuters)
06:17 JRCC James River Coal to sell 3.0 mln shares of common stock (16.00 )

Co announces that it has agreed to sell 3.0 mln shares, with an over-allotment option to sell up to an additional 450,000 shares, of its common stock in a public offering through UBS Investment Bank.
06:12 AGP Amerigroup lowers FY08 EPS guidance to reflect Federal Reserve action (31.86 )

Co issues downside guidance for FY08 (Dec), sees EPS of $2.46-2.61 vs. $2.69 First Call consensus, reflecting the Fed’s reduction in the Federal Funds Rate by 75 bps. “Since we announced our initial 2008 guidance last October, the Federal Reserve has lowered the Federal Funds Rate substantially,” said James W. Truess, AMERIGROUP’s Executive Vice President and Chief Financial Officer. “We have been able to absorb previous rate cuts by the Federal Reserve in our guidance, we believe yesterday’s action will further impact us during the remainder of 2008.” AGP also expects organic premium revenue growth to be above 15% while investment income and other revenue growth is expected to be flat to slightly above the prior year.
06:04 WIRES On The Wires -Update-

BIOLASE Technology (BLTI) announces that its Waterlase and Waterlase MD laser systems received 510(k) clearance from the FDA for root canal disinfection after endodontic instrumentation.
06:01 AAPL Apple mulls unlimited music bundle - Financial Times (132.82 )

Financial Times reports Apple is in discussions with the big music companies about a radical new business model that would give customers free access to its entire iTunes music library in exchange for paying a premium for its iPod and iPhone devices. The model, a replica of Nokia’s (NOK) “comes with music” deal with Universal Music last December, could provide the struggling recorded music industry with a much-needed fillip, and drive demand for a new generation of Apple’s hardware. Apple would not comment on the plan, but executives familiar with the negotiations said they hinged on a dispute over the price the computer maker would be willing to pay for access to the labels’ libraries. Nokia is understood to be offering almost $80 per handset to music industry partners, to be divided according to their share of the market. However, Apple has so far offered only about $20 per device, two executives said. “It’s who blinks first, and whether or not anyone does blink,” one executive said. One executive said the research had shown that consumers would pay a premium of up to $100 for unlimited access to music for the lifetime of the device, or a monthly fee of $7-$8 for a subscription model. Apple, which is thought to make relatively little money from the iTunes store compared with its hardware sales, is also understood to be examining a subscription model.
05:49 BSC Bear’s run-up sets the stage for epic clash - WSJ (5.91 )

The Wall Street Journal reports the run-up in Bear Stearns shares has set the stage for a high-stakes game of “brinksmanship” between Bear and JP Morgan (JPM). “I could see [a higher bid] if there is a holdup,” said one person involved in the transaction. “But Jamie is a very tough guy….There may ultimately be a huge confrontation here. There could be a stare-down.” Several factors have played into the rally, traders said, but the main driver appeared to be incredulity, especially among employees, who own 30% of the stock but have been largely restricted from trading. Part of yesterday’s rise was attributed to Bear Stearns’s bondholders, who are eager to see the deal get done and avoid a bankruptcy. Bear Stearns’s debt issues will be converted into J.P. Morgan bonds if the deal is approved, and these creditors are buying shares so they can vote on a deal. Other investors are shorting Bear bonds and credit-default swaps, and are buying Bear shares and will vote “no,” hoping to push Bear into bankruptcy. The person closely involved in the transaction acknowledged that J.P. Morgan’s $2.34 offer might not be the last word. If it looks like a majority of Bear shareholders are poised to reject the deal, JP Morgan may decide to sweeten its offer — or walk away from the deal entirely, likely forcing Bear to seek bankruptcy-court protection, this person said.
05:42 ETFC E*Trade’s Chief Operating Officer to resign - WSJ (3.61 )

The Wall Street Journal reports E*Trade’s Chief Operating Officer, Jarrett Lilien, plans to resign from the co. Senior management was informed of his pending departure late yesterday, according to people familiar with the matter. He will leave effective May 16, after the firm’s annual shareholder meeting.
05:38 BNP Paribas says it won’t make takeover bid for Societe Generale - WSJ

The Wall Street Journal reports BNP Paribas Wednesday said it is no longer considering a takeover bid for Societe Generale, ending recent speculation that France’s largest bank would make a play for its rival. “Given the persistent rumors, BNP Paribas clarifies that it has ceased to consider a potential tie-up with Societe Generale,” BNP said in a statement. Analysts saw SocGen’s weakened position as a unique opportunity for BNP Paribas to take over one of its most important rivals. But fears that SocGen could have more write-downs in the pipeline, an audit report exposing flawed internal security systems and current volatile market conditions, were seen as detrimental to such move. “In the current environment, BNP Paribas’ priority is to recognize and play to its strengths: stringent risk management, solid financial structure, commercial efficiency, diversification of revenue sources,” BNP Paribas also said.
05:34 Early Newspaper Headlines: BNP/SocGen - ETFC - BSC - AAPL

WSJ: BNP Paribas says it won’t make takeover bid for Societe Generale… E*Trade’s (ETFC) Chief Operating Officer to resign… Bear’s (BSC) run-up sets the stage for epic clash. Financial Times: Apple (AAPL) mulls unlimited music bundle.
03:05 WIRES On The Wires -Update-

Omniture (OMTR) announces they have partnered with Netural, a new media agency in Austria, who will sell and implement Omniture solutions for clients in the Austrian market… Elbit Systems Ltd. (ESLT) announces the District Court of Tel Aviv approved a Settlement Agreement between Elisra Electronic Systems Ltd. and its subsidiaries Tadiran Electronic Systems Ltd. and Tadiran Spectralink Ltd. (collectively “Elisra”), in which the co holds a 70% ownership interest, and The Phoenix Insurance Co; under the Settlement Agreement Phoenix will pay Elisra approx $38 mln in addition to approx $10 mln in insurance proceeds already paid.
02:54 ERIC Sony Ericsson sees moderating growth of mobile phone units with related effects on sales and profit in Q108 (19.39 )

Co announces that moderating sales growth of mobile phone units is expected to negatively impact net sales and net income before tax for Q108. Slowing market growth of mid-to-high end phones in markets is affecting sales. In addition, certain component shortages for popular mid-priced phones have contributed to modest unit sales growth in the first quarter. Co plans to ship approx 22 mln phones during Q108 with an estimated ASP of EUR 120. This is expected to generate net sales lower than Q107, and net income is estimated to be in the range of EUR 150 - 200 mln due to increased R&D expenses as a percentage of sales. (Briefing.com note: Sony Ericsson is a 50:50 joint venture of Sony (SNE) and ERIC).
00:26 Potash and Mosaic mentioned negatively in Weekday Trader - Barron’s Online

Barron’s Online reports challenges loom ahead for Potash (POT) and Mosaic (MOS). The price-to-book value on both stocks (POT and MOS) has risen to more than 8x versus their historical averages of three to four times book. China is self-sufficient in phosphate and nitrogen while its inventories for potash are running low. Potash Chief Executive Officer William Doyle says, “I think the prices are sustainable and I actually think they are going to be going up,” quite possibly by over $100 per metric ton with the Chinese negotiations. Weakness in commodity prices could begin with easily produced nitrogen, which POT produces. production by lower-cost producers of “commodity chemicals” will squeeze margins at North American and European companies, says Theresa Gusman, a portfolio manager of DWS Global Commodities Stock Fund. Although bullish about growth at Potash and Mosaic, J.P. Morgan Securities analyst David Silver says the speculative interest in their stocks “may peak toward the end of April or early May which would coincide with the spring planting season.”
00:25 ‘Mad Money’ Recap: Lightning Round cont. - TheStreet.com

Cramer was bearish on Merrill Lynch (MER), Fluor (FLR), Penn National Gaming (PENN), MBIA (MBI), Flotek Industries (FTK), Ford Motor (F), Dryships (DRYS), Cornell Companies (CRN), Crocs (CROX), American Apparel (APP), Southern Peru Copper (PCU) and Wachovia (WB).
00:24 ‘Mad Money’ Recap: Lightning Round - TheStreet.com

Cramer was bullish on Goldman Sachs (GS), Foster Wheeler (FWLT), Hudson City Bancorp (HCBK), FMC Technologies (FTI), GlaxoSmithKline (GSK), Schering-Plough (SGP), US Bancorp (USB), Wells Fargo (WFC), Research In Motion (RIMM), Apple (AAPL), Frontline (FRO) and Freeport-McMoRan (FCX).
00:23 Cramer’s ‘Mad Money’ Recap - TheStreet.com

On Tuesday’s edition, Jim favors Owens-Illinois (OI) and cited a shortage of glass as the catalyst. Owens should be able to raise prices for its glass products because of the supply of glass should remain tight until 2010, according to recent reports. A recent analyst report by Goldman Sachs predicted a 6% to 7% price increase for 2008, a number that Cramer said will trickle to Owens’ bottom line. Cramer said Owens-Illinois is also beginning to once again manufacture glass baby bottles, something concerned parents have been clamoring for amongst fears of toxic-laden plastic bottles. Owns-Illinois stock could rise to $61 a share, in his view. During the ‘Sudden Death’ round, he was bearish on Amedisys (AMED) and EMCORE (EMKR).
00:21 WIRES On The Wires

Capital Corp of the West (CCOW) files a Notification of Late Filing on Form 12b-25 with the SEC to report that it was not able to timely file its Form 10-K for the year ended December 31, 2007… NorthWestern Corporation d/b/a NorthWestern Energy (NWEC) announces that a settlement has been reached that would resolve the litigation related to Magten Asset Management’s claims in NorthWestern’s Chapter 11 bankruptcy case… Energy Transfer Partners, LP (ETP) announces it has reached an agreement to resolve the pending legal proceeding brought by the Commodity Futures Trade Commission; under the agreement, ETP will pay the CFTC $10 mln, and the CFTC agreed to release ETP and its affiliates, directors and employees from all claims or causes of actions asserted by the CFTC in this proceeding.