Broker Reports  

Please note that these are for informational purposes only and NO recommendation is given nor implied.

UPGRADES, DOWNGRADES, 

COVERAGE INITIATED & Broker Reports

The reports are sectioned as Upgrades, Downgrades and Coverage Initiated. Please check each section. PLUS, some more detailed reports at the beginning and end

Broker Commentary from Friday August 22, 2008: ( reverse chronological order)

Detailed (More Detailed at the end)09:15 am Blue Coat: . Brean Murray upgrades BCSI to Hold from Sell after Q1 results. They see consensus FY09 estimates likely to be modestly revised downward, and expect the earnings drag associated with integration-related costs to subside in the next few quarters. While reduced organic growth remains a key concern, the firm expects the shares to remain range-bound in the near-term and are taking a longer-term view on the story. Longer term, they expect up-sell/cross-sell opportunities to drive revenues and market share.

09:15 am Avanex: . Target $22.5 to $4. BWS Financial downgrades AVNXD to Sell from Buy and cuts their tgt to $4 from $22.50 following earnings and lowered guidance. The firm says AVNXD referred to a large customer forcing pricing down on legacy products during the quarter. The firm says from what they understand this was Alcatel Lucent (ALU) who has been an extensive user of legacy products from AVNXD.

09:14 am Hudson City Banc: . Boenning & Scattergood initiates HCBK with a Market Perform saying as a portfolio lender with strong capital levels, Hudson City has been experiencing rapid mortgage loan growth at the expense of other banking institutions and non-bank lenders. And high balance sheet growth coupled with outstanding credit quality has led the way for accelerating EPS growth. The firm says even with these tailwinds, the current valuation appears full as the stock is trading at a 36% premium to peers on Forward P/E and 76% premium on price-to-tangible book value. The firm also believes takeover speculation is responsible for a portion of these premiums and that such an event is unlikely over the next 12 months.

09:14 am Las Vegas Sands: . BofA Sec downgrades LVS to Sell from Neutral (tgt to $30 from $43) on view that valuation is high given headwinds. Firm notes that LVS needs money at each of its 3 subsidiaries: U.S., Singapore and Macau. Notes that LVS trades at 21.5x/ 11.7x firm's '08/'10E EBITDA vs. Wynn (WYNN, 90.21, Buy, tgt 94) at 15.2x/10.5x. With funding concerns and weaker fundamentals, BofA thinks its tough to justify this premium. Given the leverage, every multiple point is equal to $7/share, so at 10x (below WYNN, but above peers) LVS would trade at $30.

09:13 am Simcere Pharma: . Target $16. Roth Capital initiates SCR with a Buy and price target of $16 saying Simcere is a leading developer and supplier of innovative and first-to-market high margin branded generic pharmaceutical products in China. The company employs acquisitions and internal research as growth strategies. The firm says macro trends favorable for China pharmaceutical sector and Simcere. With a population of more than 1.3 billion, and double digit GDP growth, China's health care industry is targeted to expand 12% to 15% per year for the next five years based on increasing health care demands and governmental support. As the pharmaceutical industry consolidates in China, well-entrenched, diversified players such as Simcere are positioned for growth.

09:13 am Cost Plus: . Target $3 to $2. Caris & Company downgrades CPWM to Average from Above Average and lowers their tgt to $2 from $3 given the increasing macroeconomic hurdles and limited visibility in 2H08. The firm notes Q3 guidance calls for relatively flat comps; however margins are projected to remain under pressure given the inflationary environment.

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3:59PM Market View: Broad based strength to end the week (TECHX) : Follow through gains for the stock market on Friday in the wake of a sizeable slide in Crude Oil and continued chatter of a possible buyout of LEH. The opening push persisted for the first hour with the market averages stalling in the vicinity of resistances. The Dow probed its 50 ema at 11637, the S&P 500 probed its 50 ema/July-early Aug trendline 1291/1293 while the Nasdaq Comp flirted its 200 ema at 2416. A downgrade of the ratings on preferred shares of FNM/FRE (which pressured Housing) and a pullback in early leader LEH led to a modest slide into midday. However, the market maintained its firmer bias and rotated higher during the afternoon amid another round of Dollar gains/Crude Oil losses. The advance was broad based with the top performing sectors led by Transports (Airline +8.1%, Trucking +3.4%, Rail +2.2%), Finance (Broker +3.3%, Bank +2.6%, Insurance +2.1%) along with Casino +3.4%, REITs +2.6%, Retail +2.5%, Housing XHB +2.3%, Restaurant +2.2%, Networking +2.2%, Disk Drive +2%, Software +1.9%. Energy/Commodity paced the way lower (Gasoline UGA -5.9%, Natural Gas UNG -5.8%, Crude Oil USO -5.6%, Heating Oil UHN -5.5%, Silver -3.4%, Gold Miners GDX -2.7%, Coal -3.1%, Steel -1.9%, Oil Service -1.7%).

3:55PM Conference/Events Calendar for the week of August 25th - August 29th : Events of interest for the week of, August 25th - 29th, include: Monday: No events/conferences of note... Tuesday: ANSS Analyst Meeting; Independent Petroleum Association of America International Forum; PERY at MAGIC International Investor Conf; TER at Morgan Stanley Semiconductor Conf; FOMC policy minutes released...  Wednesday: ARNA, QCOM at American Electronics Association Green To Gold: Monetizing the Clean Tech Phenomena Conf; Independent Petroleum Association of America Summer NAPE Conf; Atlanta Fed pres Lockhart...  Thursday: Independent Petroleum Association of America Summer NAPE Conf; SAI, ZBRA, SPSS, GLDD, LLL at American Electronics Association Illinois FedTech Security Procurement Conf; UHAL Announces 2nd Annual Virtual Analyst and Investor Meeting...  Friday: Financial future & options close early in observance of Labor Day (13:00 ET).

2:58PM Market View: Minor new high Nasdaq Comp of 2417, flirting with 200 ema/sma at 2415/2421 (TECHX) : 

2:41PM CBOT Agriculture and Ethanol Closing Prices (COMDX) : Sep corn closed lower by 11 1/4 cents to $5.86 1/2 per bushel, Sep soybeans closed lower by 20 cents to $13.21 per bushel, Sep wheat closed lower by 31 3/4 cents to $8.65 1/2 per bushel, Sep Ethanol closed lower by $0.058 to $2.340 per gallon.

2:38PM NYMEX Energy Closing Prices (COMDX) : Oct crude closed lower by $6.54 to $114.64, Sept natural gas settled off 40.6 cents to $7.846, Sept heating oil ended down 16.96 cents and Sept RBOB gasoline declined 18.02 cents on the day to $2.865.

2:29PM With a min left in pit trade, crude makes a new session low at $114.18; currently off $6.58 to $114.60 (COMDX) : 

2:12PM Alpharma resumes trading (ALO) 34.60 +10.56 : 

2:06PM Crude has now given back all of yesterday's gains, and then some, after making lows at $115.44; currently off $5.38 to $115.80 (COMDX) : 

2:04PM Alpharma's Board of Directors has determined the non-binding proposal to be not in the best interests of Alpharma shareholders (ALO) 34.36 +10.32 : Co confirmed that it received this morning an unsolicited, non-binding proposal from King Pharmaceuticals (KG) to acquire all of the outstanding shares of Alpharma for $33.00 per share in cash. Alpharma said today's proposal was identical in all material respects to two prior proposals made privately by King to the company. Having thoroughly reviewed all relevant aspects of King's proposal in consultation with its financial and legal advisors, Banc of America Securities and Simpson Thacher & Bartlett, respectively, and in the context of the value Alpharma is creating, Alpharma's Board of Directors has determined the non-binding proposal to be not in the best interests of Alpharma shareholders. In letter to King co also says ".... We are willing to entertain a proposal from you that we believe more appropriately values the Company. To that end, we remain open to discussions with you at a price that we believe reflects the inherent value of Alpharma as well as the significant benefits, as your letter and comments to investors earlier today describe, that would accrue to King as a result of the transaction. If you have an interest in engaging in a dialogue on that basis, please contact me at your earliest convenience..." (stock is halted)

1:59PM Alpharma trading halted - news pending (ALO) 34.36 +10.32 : 

1:54PM Crude continues its move lower, making lows at the $116.50 mark; now off $4.55 to $116.66 (COMDX) : 

1:50PM Amgen confirms FDA approves Nplate for long-term treatment of adult chronic ITP (AMGN) 63.90 +0.09 : Co announces the United States FDA has approved Nplate, the first and only platelet producer for the treatment of thrombocytopenia in splenectomized and non-splenectomized adults with chronic immune thrombocytopenic purpura.

1:47PM COMEX Metals Closing Prices (COMDX) : Oct gold ended the session lower by $8 to $830, Sept silver closed down 26 cents to $13.54 and Sept copper finished off 5.9 cents to $3.47.

1:02PM Crude makes another move lower, setting session lows at $117.14; now off $3.85 to $117.33 (COMDX) : 

12:07PM China BAK Battery announces it has entered into definitive agreements with investors to sell 4,102,564 mln shares of its stock at $3.90 per share (CBAK) 4.50 -0.06 : Co announces it has entered into definitive agreements with certain accredited investors to sell in a registered direct offering 4,102,564 million shares of its common stock at a price at $3.90 per share under its Form S-3 Registration Statement resulting in gross proceeds to the Company of $16 mln, before deducting placement agent fees and expenses of the offering.

11:57AM SLM Corp announces that Chairman Anthony Terracciano purchased 10,000 shares of SLM common stock last week (SLM) 13.84 -0.21 : Co announces that Chairman Anthony Terracciano purchased 10,000 shares of SLM common stock last week. The purchase increases Terracciano's beneficial holdings to 238,422 SLM shares. In addition, SLM Director Wolfgang Schoellkopf purchased 5,000 shares of SLM common stock this week, increasing his beneficial holdings to 62,400 SLM shares. SLM Director Ronald Hunt also purchased 3,000 shares of SLM preferred stock last week. Hunt's beneficial holdings total 217,585 SLM shares.

11:54AM Abiomed announces the completion of the public offering of 2,419,932 shares of its common stock at $17.3788 per share (ABMD) 18.03 +0.05 : Co announces the completion of the public offering of 2,419,932 shares of its common stock at $17.3788 per share. The net proceeds to Abiomed from the offering were approx $41.7 mln, after deducting the underwriting discount and estimated offering expenses.

11:52AM European Markets Closing Prices: FTSE: +2.4%, DAX: 6342.4 +105.5 +1.7%, CAC: 4400.5 +95.8 +2.2% : 

11:06AM Crude makes new lows at $117.54, and has now given back over 50% of yesterday's gains; currently off $3.30 to $117.88 (COMDX) : 

10:34AM Gold Fields receives summons from Randgold and Exploration (GFI) 8.99 -0.31 : Gold Fields Operations Limited, (formerly known as Western Areas Limited) a subsidiary of Gold Fields (GFI) announced today that on 21 August 2008 it had received a summons from Randgold and Exploration Company Limited and African Strategic Investment. The summons claims that during the period that WAL was under the control of Brett Kebble, Roger Kebble and others, WAL was allegedly part of a scam whereby JCI Limited unlawfully disposed of shares owned by Randgold in Randgold Resources Limited and Afrikander Lease Limited, now Uranium One. receives summons from Randgold and Exploration

10:14AM Pioneer Drilling CFO Schuldt Resigns (PDC) 17.94 -0.53 : Co announces that its CFO Joyce Schuldt has resigned from the Company, effective August 28. In addition, co's Director Robert Bunch has resigned from the Company's Board of Directors, effective immediately. William D. Hibbetts has been appointed interim Chief Financial Officer. Hibbetts previously served as Pioneer's Chief Financial Officer from December 2003 until July 2007, when he was reassigned to the position of Senior Vice President and Controller for the Drilling Services Division.

9:50AM Crude moves to session lows at $118.55; currently off $2.48 to $118.70 (COMDX) : 

9:29AM Columbia Labs prices a 1.3 mln share common stock offering at $3.50/share (CBRX) 3.79 : 

9:16AM S&P futures vs fair value: +7.0. Nasdaq futures vs fair value: +7.5. : Stocks are looking for an upward start just ahead of the session's opening bell.  Lehman Brothers (LEH) continues to attract attention after word surfaced that it may be the target of an acquisition, but sources indicate the parties have not directly responded to the story.

9:01AM Vermillion announces publication of data supporting its peripheral artery disease diagnostic test program (VRML) 1.16 : Co announces the publication of data supporting its peripheral artery disease diagnostic program. The results were published in the Aug, 2008 issue of the peer-reviewed journal, Vascular Medicine. The study comprised 540 individuals: 197 individuals with both coronary artery disease and peripheral arterial disease (CAD + PAD); 81 with CAD only; and 262 with no hemodynamically significant disease of the coronary or peripheral arteries. Blood plasma was analyzed for a series of candidate biomarkers, and a final biomarker panel comprising Beta-2M, cystatin C, hsCRP, and glucose had an increased association with PAD status (odds ratio = 7.3). "Our study indicates that this biomarker panel could assist physicians in identifying those individuals at highest risk of having PAD."

9:00AM S&P futures vs fair value: +7.5. Nasdaq futures vs fair value: +8.8. : Early morning sentiment remains upbeat.  Famed investor Warren Buffett stated in a CNBC interview that government supported mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) are looking for private investment, but the scale needed is unlikely to come from the private sector.  Shares of both outfits are trading higher in premarket activity.  Oil has retreated in early action.  Crude climbed more than 5% during the previous session, but is currently indicated roughly 1.5% lower.

8:31AM Tix Corp. announces stock repurchase program for up to 1 mln shares of common stock (TIXC) 4.25 : 

8:31AM S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +7.8. : Futures continue to indicate a strong start to Friday's session.  The Wall Street Journal reported Boeing (BA) is considering withdrawing from the U.S. Air Force aerial refueling tanker contract bidding unless given six months to submit a new bid.

8:15AM Gannett says total pro forma operating revs for the seventh period ended August 3, 2008 declined 12.3% (GCI) 17.55 : Co announces today that total pro forma operating revenues for the seventh period ended August 3, 2008 declined 12.3% compared with the same period in 2007. For comparison purposes, the exchange rate of the British pound decreased slightly compared to last year. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have declined 12.0%. Publishing advertising revenues in July were 16.7% lower compared with the same period a year ago. On a constant currency basis publishing advertising revenues would have declined 16.4%.

8:14AM Crystallex updates shareholders on the Las Cristinas Project and a letter from the Ministry of Environment (KRY) 1.19 : Co advise its shareholders and stakeholders that it has received an official letter from the Venezuelan Ministry of the Environment and Natural Resources in response to the report on modifications to the Las Cristinas project submitted to MinAmb and referred to in the Crystallex press release of August 14th 2008. The communication from the Vice-Minister of MinAmb, notified Crystallex that MinAmb has reviewed the Report submitted by Crystallex and finds that the proposals in the report are viable and conform to the Environmental and Social guidelines of the Venezuelan Government. The Ministry further advises that these findings must be taken into account with respect to the decision the government is to take regarding the Environmental Permit for the Las Cristinas project. Although the letter from MinAmb does not formally address the Appeal procedure initiated by Crystallex in May, 2008, Crystallex has been advised by Venezuelan Counsel that in practical terms this letter supersedes the effects and position of the April, 2008 letter from a Director General in MinAmb denying the request by the Corporacion Venezolana de Guayana for the issuance of the Permit for the Las Cristinas gold project.

8:04AM On The Wires (WIRES) : Indevus Pharmaceuticals (IDEV) announces the completion of enrollment in Protocol MDP 301, a Phase III clinical trial of PRO 2000, the co's candidate vaginal microbicide for the prevention of HIV and other sexually transmitted infections... Synta Pharmaceuticals (SNTA) announces the publication of new findings in the American Association for Cancer Research journal, Molecular Cancer Therapeutics that describe the novel mechanism of action of elesclomol: driving programmed cell death in cancer cells through the selective induction of oxidative stress.

8:01AM Senorx and Hologic agree to resume proceedings in lawsuit (SENO) 6.05 +0.01 : Co announces that Hologic (HOLX) and SenoRx have agreed jointly to request that the United States District Court for the Northern District of California resume proceedings in the lawsuit pending between the parties, including rescheduling the Markman claims construction hearing. The Court had previously granted a joint request by the parties to stay all proceedings in the case, including the Markman claims construction hearing (previously scheduled for June 25, 2008) and trial (previously scheduled to begin on July 14, 2008), for at least sixty days in order to provide the parties time to discuss possible resolution of the matter.

8:00AM S&P futures vs fair value: +7.7. Nasdaq futures vs fair value: +13.0. : Stock futures are indicating an upward start for the week's final trading session.  Sentiment was relatively neutral earlier, but spirits lifted when Korea Development Bank stated that Lehman Brothers (LEH) is an option for acquisition, according to Reuters.  In earnings news, Gap (GPS) surpassed the consensus earnings per share estimate for its latest quarter, and issued an in-line outlook.  Pacific Sunwear (PSUN) saw in-line earnings per share results, but issued downside guidance for the third and fourth quarter.

7:47AM AnnTaylor beats by $0.05; guides Q3 below consensus, Q4 above consensus; reaffirms FY09 EPS guidance (ANN) 24.29 : Reports Q2 (Jul) earnings of $0.54 per share, excluding non-recurring items, $0.05 better than the First Call consensus of $0.49; revenues rose 3.7% year/year to $614.5 mln vs the $622.9 mln consensus. Co issues downside guidance for Q3, sees EPS of $0.50-0.55, excluding non-recurring items, vs. $0.65 consensus. Co issues upside guidance for Q4 (Jan), sees EPS of $0.30-0.35 vs. $0.21 consensus. Co reaffirms guidance for FY09, sees EPS of $1.80-1.90 vs. $1.82 consensus.

7:33AM On The Wires (WIRES) : Eli Lilly (LLY) and Boehringer Ingelheim have announced that the European Commission has approved the use of Cymbalta for the treatment of Generalised Anxiety Disorder... Vantage Drilling (VTG) announces that its ultra-premium jackup rig, the Emerald Driller has been awarded a two year contract to operate in Southeast Asia. The contract is expected to commence early February 2009, following the completion of its construction and commissioning activities in Singapore. Estimated revenues to be generated over the initial term are approximately $128.3 mln, excluding revenues for cost escalations and client reimbursables.

7:32AM Perry Ellis misses by $0.07, misses on revs; guides FY09 EPS below consensus, reaffirms FY09 revs guidance (PERY) 23.00 : Reports Q2 (Jul) loss of $0.09 per share, excluding non-recurring items, $0.07 worse than the First Call consensus of ($0.02); revenues fell 0.8% year/year to $193.7 mln vs the $197.9 mln consensus. Co issues guidance for FY09, sees EPS of $1.75-1.80, excluding $0.08 non-cash impairment charge for marketable securities, compared to previous guidance of $1.95-2.00, vs. $2.00 consensus; reaffirms FY09 revs of $910-925 mln vs. $933.51 mln consensus.

7:15AM Herbalife announces Fraud Discovery institute retracts Herbalife accusations (HLF) 46.64 : The co and the Fraud Discovery Institute announced that the Fraud Discovery Institute retracts its accusations against multi-level marketer Herbalife. Herbalife and the Fraud Discovery Institute reached the agreement to avoid litigation. Upon further investigation by FDI founder Barry Minkow, the Fraud Discovery Institute became convinced that Herbalife employs systematic internal controls, including the use of outside, independent laboratory testing, which ensures their products are manufactured safely and in compliance with California law. It is evident to the Fraud Discovery Institute that Herbalife produces products that are safe, and that the company strives for continuous improvement in product quality.

7:06AM Endocare and Former CFO agree to terminate indemnification agreement (ENDO) 2.39 : Co announces that it has entered into an agreement with its former CFO, John V. Cracchiolo, pursuant to which Mr. Cracchiolo's indemnification agreement was terminated in exchange for Endocare's waiver of certain severance and legal fee reimbursement rights. For September 2008 through December 2008, the co had budgeted over $875,000 for Mr. Cracchiolo's legal costs. As a result of this new agreement, the co is no longer obligated to pay any future legal costs for Mr. Cracchiolo.

7:05AM SkillSoft beats by $0.03, beats on revs; guides Q3 EPS in-line, revs in-line; raises Y09 guidance (SKIL) 9.89 : Reports Q2 (Jul) earnings of $0.10 per share, $0.03 better than the First Call consensus of $0.07; revenues rose 16.5% year/year to $83.3 mln vs the $82.4 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.09-0.10 vs. $0.09 consensus; sees Q3 revs of $84-85.5 mln vs. $84.83 mln consensus. Co issues guidance for FY09, sees EPS of $0.35-0.38, compared to previous guidance of $0.32-0.35, vs. $0.34 consensus; sees FY09 revs of $335-338 mln, compared to previous guidance of $329-336 mln, vs. $336.43 mln consensus. Co sees Y09 adjusted EBITDA of $101-103 mln, compared to previous guidance of $96-100 mln.

7:03AM OncoGenex Pharma: FDA grants fast track designation for product candidate OGX-011 (OGXI) 4.82 : Co announces that OGX-011, also known as custirsen sodium, received Fast Track designation from the U.S. Food & Drug Administration (FDA) in combination with docetaxel for progressive metastatic prostate cancer. OGX-011 is currently completing five Phase 2 clinical studies in prostate, lung and breast cancer, and is designed to inhibit the production of a specific protein, clusterin, associated with treatment resistance.

7:01AM Human Genome completes enrollment in randomized phase 2 trial of HGS-ETR1 in non-small cell lung cancer (HGSI) 7.08 : 

7:00AM E-House China announces $20 mln buyback (EJ) 7.94 : 

6:59AM Aon to acquire Benfield Group Limited for $1.75 bln in cash and stock (AOC) 46.70 : Aon Corporation and Benfield Group Limited announce that the boards of directors of both companies have unanimously approved a definitive agreement under which Aon will acquire Benfield for 3.50 pounds Sterling ($6.55) per share in cash and assume 91 million pounds ($170 million) of Benfield net debt, representing an enterprise value of approximately 935 million pounds ($1.75 billion) on a fully diluted basis. The consideration represents a 29% premium to Benfield's closing stock price on August 21, 2008, the last trading day prior to the announcement of the agreement. Aon expects the acquisition to be accretive to earnings per share in the first year after closing, excluding one-time items, and meaningfully accretive thereafter.

6:56AM Yingli Green Energy announces plans to construct a solar power plant in Beijing, China (YGE) 15.39 : Co announces that it has entered into a framework agreement with the local government of a county in Beijing regarding the proposed construction of a 10 MW solar power plant. Under the framework agreement, a wholly-owned subsidiary of Yingli Green Energy and an entity controlled by the county government would establish a new company to construct the plant. Subject to further negotiations, the construction of the project would be expected to begin in the second half of 2009.

6:34AM China Sunergy beats by $0.05, beats on revs; reaffirms Y08 production target (CSUN) 9.93 : Reports Q2 (Jun) earnings of $0.08 per share, $0.05 better than the First Call consensus of $0.03; revenues rose 44.9% year/year to $111.6 mln vs the $94.7 mln consensus. Co sees all of the 4 new production lines in mass production in Q4 despite some possible delays in electricity supply and equipment delivery. Co sees total capacity of 320 MW by the end of the yr assuming the use of 156-mm mono- crystalline silicon wafers. Co reaffirms Y08 production target of 125-145 MW, with approx 55-75 MW expected to come from high efficiency cell products. Taking into account the increased wafer costs for Q3 as well as the uncertainties in terms of wafer quality and foreign exchange fluctuation, the co sees gross margins of 9-11%, and production volume in the range of 35-37MW. Blended ASP is expected to be approx $3.40-3.50 per/watt.  For Y09, co is working on a plan to support a production target of 220-250MW including 20-25% from OEM business. Gross margin should strengthen from early 2009 as a result of better terms from suppliers, improved operational and production efficiencies, and the expected decline in wafer costs more than offsetting any potential ASP weakness.

6:19AM S&P futures vs fair value: -0.2. Nasdaq futures vs fair value: +0.5. :

6:19AM European Markets : FTSE...5423.60...+53.40...+1.0%. DAX...6272.77...+35.81...+0.6%.

6:19AM Asian Markets : Nikkei...12666.04...-86.17...-0.7%. Hang Seng...20392.06...-539.20...-2.6%.

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