General Electric (NYSE: GE) closed at $20.35 Tuesday. GE November option implied volatility of 52 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Siemens (NYSE: SI) closed at $63.97 Tuesday. SI November option implied volatility of 86 is above its 26-week average of 37 according to Track Data, suggesting larger price movement.

Philips Electronics (NYSE: PHG) closed at $18.71 Tuesday. PHG November option implied volatility of 68 is above its 26-week average of 43.

United Technologies (NYSE: UTX) closed at $50.95 Tuesday. UTX November option implied volatility of 53 is above its 26-week average of 33.

Hitachi Ltd (NYSE: HIT) closed at $51.63 Tuesday. HIT November option implied volatility of 71 is above its 26-week average of 36 according to Track Data.

Honeywell (NYSE: HON) closed at $28.85 Tuesday. HON November option implied volatility of 66 is above its 26-week average of 37.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Hitachi (NYSE: HIT) made a bold move in 2002 when it purchased IBM (NYSE: IBM)'s hard drive business for $2 billion. At the time, the hard drive industry was in a profit funk and IBM was looking to exit the hardware business. It eventually sold its PC division to Chinese company Lenovo to complete its exit from hardware. Five years later, Hitachi probably wishes it had never gotten into hard drives.

Hitachi Global Storage Technologies, the division responsible for hard drive storage, has consistently lost money in the last two years as competitors Seagate Technology (NYSE: STX) and Western Digital (NYSE: WDC) have really taken advantage of home entertainment, laptop and TiVo-like devices that are infiltrating homes like stormtroopers. Sales have been very nice for both companies, which are profitable even after storage was considered a boring and dead field around the year 2000. Hitachi, though, has had no such luck. Instead of selling its hard drive division to a private equity firm, the Japanese conglomerate may be looking to Japanese competitors Toshiba and Fujitsu as partners to form a new hard drive company.

Silver Lake Partners, which helped take Seagate private in 2000 only to launch it as a public company a few years later, has reportedly been in talks with Hitachi. Nothing concrete was produced, and Hitachi even said it does not want to sell the division. If Hitachi is too steeped in Japanese culture to sell to outsiders, then it has to do something -- but its options may remain limited. And, Toshiba and Fujitsu -- both of which have small hard drive businesses -- may not want to take more risk in the storage business currently dominated by Seagate and Western Digital. Hitachi shareholders, hold no fear; most likely, some kind of decision will come before April 1 of this year.

Emerson Electric Company (NYSE: EMR) is a diversified technology firm, providing electrical products and engineering services to industrial, commercial and consumer markets. Products include motors, appliances, tools and monitoring devices for controlling industrial plant operations, providing commercial and residential power and environmental control, and operating commercial refrigeration units. Competitors include General Electric (NYSE: GE) and Hitachi (NYSE: HIT).

The company pleased investors earlier in the month, when it reported fiscal Q4 EPS of 78 cents and revenues of $6.13 million. Analysts had been expecting 75 cents and $6.04 billion. Management also guided FY08 EPS to about $2.93-3.06 ($2.98 consensus) and FY08 revenues to about $24.15-24.83 billion ($24.03B consensus).

The US government hopes that a large number of nuclear plants will be built in the US over the next 20 years to cut the country's need for oil. But GE (NYSE: GE) CEO Jeffrey Immelt says they will not be built without incentives from the Feds.

According to the FT, "Immelt said only five to 10 US nuclear power projects were likely to go ahead unless there was a carbon-pricing framework to create incentives for utilities to build more." That may be true, but GE should be quiet about championing aid for building those facilities. GE and Hitachi (NYSE: HIT) have a joint venture to build nuclear plants, and the parties would not want to be seen as sell-serving.

The comments raise a difficult issue. The government and utilities both know that the long-term future of cheap oil looks bad. But building nuclear plants take years, is expensive, and requires passing government safety standards. Over the next decade it may actually be cheaper to continue to use fossil fuels even it the price of oil stays high.

GE will make a lot of money on the move to nuclear fuel, but that does not mean that its call for government help is wrong.

Douglas A. McIntyre is an editor at 247wallst.com.

As firms become increasingly dependent on efficient and secure access to enterprise data, the advantages of a unified architectural approach to database management become increasingly apparent. There is an outfit in Oceanport, New Jersey, noted for the degree to which its systems employ that approach.

CommVault Systems (NASDAQ: CVLT) provides data management software and related services. Its unified suite of applications is used for enterprise-wide data migration, backup, archiving, data replication and disaster recovery. The firm serves customers in manufacturing, financial services, health care, transportation and the public sector. It has strategic partnerships with the likes of Dell (NASDAQ: DELL), Hitachi (NYSE: HIT) and Novell (NASDAQ: NOVL).

The firm pleased investors last week when it announced fiscal Q2 EPS of 12 cents and revenues of $47.4 million. Analysts had been expecting 12 cents and $45.9 million. The revenue figure was a company record. Management also guided FY08 EPS to 57-59 cents (56 cent consensus) and FY08 revenues to $194-$196 million ($192.81 million consensus). In discussing the favorable outlook, the CEO noted significant progress in expanding the company's market positions in backup and emerging products.

Manufacturing processes that were unimaginable a generation ago are now commonplace, thanks to the development of laser technology. A leader in the art of fabricating lasers for the broad spectrum of current industrial applications is headquartered in Billerica, Massachusetts.

GSI Group (NASDAQ: GSIG) supplies precision technology components, lasers, and laser-based manufacturing systems to the electronics, semiconductor, medical, aerospace and industrial markets. Its Precision Technology segment offers air bearing spindles; encoders; optical scanners; thermal printers; general optics; and lasers that are used for welding, cutting, drilling, surface marking and engraving of metal and plastic parts. The company's Semiconductor Systems segment designs, develops and supplies production systems that enable the manufacturing of semiconductor chips. Hitachi (NYSE: HIT) is a competitor.

The company pleased investors last week, when it guided Q3 EPS to 16-18 cents and Q3 revenues to $82-84 million. Its previous predictions had been for 9-13 cents and $77-82 million. Analysts were expecting 11 cents and $80.6 million. Management cited follow-on orders from an existing customer and final acceptance of a multi-system order from a new customer for the improved view.

As firms become increasingly dependent on efficient and secure access to enterprise data, the advantages of a unified architectural approach to database management become increasingly apparent. There is an outfit in Oceanport, New Jersey noted for the degree to which its systems employ that approach.

CommVault Systems (NASDAQ: CVLT) provides data management software and related services. Its unified suite of applications is used for enterprise-wide data migration, backup, archiving, data replication and disaster recovery. The firm serves customers in manufacturing, financial services, health care, transportation and the public sector. It has strategic partnerships with Dell (NASDAQ: DELL), Hewlett-Packard (NYSE: HPQ), Hitachi (NYSE: HIT), Microsoft (NASDAQ: MSFT), Network Appliance (NASDAQ: NTAP), Novell (NASDAQ: NOVL) and Oracle (NASDAQ: ORCL).

The firm pleased investors last week, when it announced fiscal Q4 EPS of 14 cents and revenues of $42.6 million. Analysts had been expecting 12 cents and $42.0 million. Management also guided FY08 EPS to 55-57 cents (56 cent consensus) and FY08 revenues to $191-$193 million ($191.19M consensus). In discussing the solid quarterly results and favorable outlook, the CEO noted that the company is seeing broader deployment of its full suite of products across a broader spectrum of deal sizes. CVLT shares popped on the news and subsequently moved into the initial stages of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys," four "buys" and two "holds." Analysts see a 27% growth rate, through the next year. The CVLT Sales Growth rate (31.48%), Return on Assets (18.77%) and Return on Investment (55.11%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 73% of the outstanding shares. Since going public last September, the stock has traded between $14.74 and $20.85. A stop-loss of $14.80 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

If necessary, most of us could probably find a place to rent a T.V. If our needs ran more toward aerial lifts, industrial hoists and excavators, though, what then? Well, there is a firm headquartered in Baton Rouge that has them shined up and waiting.

H&E Equipment Services Inc. (NASDAQ: HEES) is a heavy equipment services company, operating 48 facilities throughout the United States. The firm rents out aerial platform equipment, cranes, earthmoving vehicles and industrial lift trucks. It also sells new and used equipment and provides maintenance services. Customers include industrial concerns, construction contractors, public utilities and municipalities. H&E deals with equipment from numerous manufacturers, including Caterpillar (NYSE: CAT), Ford (NYSE: F), Deere (NYSE: DE) and Hitachi (NYSE: HIT).

The company had good news for investors last week, when it reported Q1 EPS of 32 cents and revenues of $209.7 million. Analysts had been expecting 29 cents and $205.6 million. Management also guided FY07 EPS to $1.63-$1.85 ($1.82 consensus) and FY07 revenues to $900-$920 million ($901.22M consensus). Banc of America Securities subsequently reiterated its "buy" recommendation on the issue and raised its price target to $30.

As you acquire home entertainment systems, you inevitably acquire remote controls. When it gets to the point that you wish you had just one remote that controlled everything, there is a firm in Cypress, California that can help you.

Universal Electronics (NASDAQ: UEIC) provides pre-programmed wireless control products and audio-video accessories for home entertainment systems. The firm's One For All brand universal remote controls contain infrared codes that allow them to operate virtually any remote-capable device, including CD and DVD players, satellite receivers, surround sound systems, tuners, TVs, and VCRs. The company also sells devices that allow televisions, set-top boxes, stereos, automotive audio systems and cell phones to wirelessly connect with home networks and interactive services for delivery of digital entertainment and information. Its audio/video accessory line includes digital antennas, signal boosters, television brackets, cleaning products and micro-controllers. The firm holds 168 remote-related patents. Corporate clients include Hewlett-Packard (NYSE: HPQ), Hitachi (NYSE: HIT), Intel (NASDAQ: INTC) and Time Warner Cable (NYSE: TWC).

Hoorah, now that this earnings period is starting to wind down, I can highlight some non-earnings events to look out for next week.

Monday May 14

• Hitachi Ltd (NYSE: HIT) Strategic Storage Announcement conference call at 8am.
• Aircastle Limited (NYSE: AYR) to report Q1 earnings; conference call at 11am.
• Another Vioxx trial starts for Merck and Co Inc (NYSE: MRK) in Texas.

Tuesday May 15

• Motorola Inc (NYSE: MOT) mobile experience at 10am.
• Yamana Gold Inc (NYSE: AUY) to report Q1 earnings; conference call at 11am.

Wednesday May 16

• Southwest Airlines (NYSE: LUV) shareholder meeting at 11am.
• Hewlett-Packard Company (NYSE: HPQ) to report Q2 earnings; conference call at 5pm.

Thursday May 17

• JC Penney Company Co Inc (NYSE: JCP) to report Q1 earnings; conference call at 9:30am.
• Liz Claiborne Inc (NYSE: LIZ) annual shareholder meeting at 10am.
• Biogen Idec (NASDAQ: BIIB) research and development day at 8:30am.

Friday May 18

• British Airways (NYSE: BAB) to report preliminary Q4 earnings; conference call at 9am.
• Federated Department Stores Inc (NYSE: FD) shareholder meeting at 11am.

In most businesses, diversification is the key to steady profits. There is a chip manufacturer in Sunnyvale, California that recognizes that truth and successfully serves a variety of different consumer electronics markets.

Silicon Image (NASDAQ: SIMG) designs and develops semiconductors for the secure storage, distribution and presentation of digital content. Its products are used in a variety of devices, including digital televisions, DVD players, set-top boxes, audio/video receivers, game consoles, high definition camcorders and digital still cameras. The company also offers its own consumer electronics devices, including high-definition multimedia interface transmitters and receivers, as well as products that connect PCs to digital displays. Silicon Image has strategic relationships with the likes of Walt Disney (NYSE: DIS), Sony (NYSE: SNE) and Hitachi (NYSE: HIT). Texas Instruments (NYSE: TXN) is a major competitor.

The firm pleased investors earlier in the month, when it announced that it expected first quarter revenues to come in essentially in-line with the consensus Street estimate. Management also said it sees gross margins exceeding the previously provided range. RBC Capital Markets subsequently upgraded the stock to "outperform."

Wireless mobile telecommunications has become such an integral part of civilized life that it is sometimes surprising to remember that the business was in its infancy little more than twenty years ago. One of the members of the "founders club" is based in San Diego.

Qualcomm Inc (NASDAQ: QCOM) designs, develops, manufactures and markets digital wireless telecommunications products and services based on its Code Division Multiple Access (CDMA) technology. The firm supplies integrated circuits and system software for voice and data communications, multimedia devices and global positioning products. It also licenses CDMA semiconductor technology and software to more than 100 other equipment and cell phone makers. The Qualcomm Ventures unit invests in wireless communications and Internet startups. Firms licensing Qualcomm's technology include Cisco Systems (NASDAQ: CSCO), Hitachi (NYSE: HIT), Motorola (NYSE: MOT), Nokia (NYSE: NOK) and Palm (NASDAQ: PALM).

The company pleased investors last month, when it guided fiscal Q2 EPS to 48-49 cents (42-44 cents prior, 43 cent consensus) and revenues to $2.1-2.2 billion ($2.0-2.1B prior, $2.08B consensus). The new guidance was based on Q2 shipments of about 60-61 million Mobile Station Modem chips, versus a prior estimate of 55-57 million units.

Semiconductor IPOs have been hit-or-miss over the years, but that's not stopping AuthenTec, which recently filed to go public.

The company develops mixed-signal semiconductors that allow for fingerprint authentication sensors. The company has shipped over 15 million sensors and is integrated in over 150 laptops, desktops and peripherals. There are even 6 million mobile phones with AuthenTec chips.

The company has more than 100 customers, including biggies like Fujitsu, Hewlett-Packard Co. (NYSE: HPQ), Hitachi Ltd. (NYSE:HIT), LG Electronics and Toshiba.

AuthenTec also has great timing. In light of recent security breaches, the company's technologies should be a big help.

And, the company is growing like a weed. Revenues increased from $19.2 million in 2005 to $33.2 million in 2006.

That should get the attention of investors.

The lead underwriter is Lehman Brothers and the proposed ticker symbol is "AUTH." You can find the filing at the SEC website.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

MAJOR PAPERS:

• The Financial Times (subscription required) reported that General Motors Corporation's (NYSE: GM) CEO Rick Wagoner expressed caution about the possibility of General Motors adding new brands or US manufacturing plants to its portfolio, remarks that are likely to quash expectations of an imminent GM bid for cross-town rival DaimlerChrysler AG (NYSE: DCX).
• According to the Financial Times, Nikko Cordial's largest investor has rejected Citigroup Inc's (NYSE: C) $11B takeover bid.
• Also in the Financial Times, 3M Corporation (NYSE: MMM) has filed infringement lawsuits against Sony Corporation (NYSE: SNE) and Lenovo (LNVGY), and others, including Hitachi Ltd ADR (NYSE: HIT), CDW Corporation (NASDAQ: CDWC) and Matsushita Electric Industrial Co Ltd (NYSE: MC).

OTHER PAPERS:

• India's Economic Times reported that Wipro Ltd ADS (NYSE: WIT) is said to be close to acquiring an unnamed U.S. aerospace services company for about $90M.
• According to the U.K. Times, Procter & Gamble Company (NYSE: PG) has said it is willing to team up with private equity firms to pursue deals.

Companies start to believe their own PR hype. Investors push a stock past logical limits. A company seems about to break down or break out. These are just a few things that can signal a stock with attitude. And... that attitude can be good or bad for the stock price, since attitude always catches up with reality. At least on Wall Street, that is.

Intel Corp. (NASDAQ:INTC) was down $0.23 (-1.09%) to close at $20.80 on lighter than average average daily volume. In a generally down market, Investors were not willing to bid INTC up even though there was a report that the chip-making giant said it has successfully produced a chip -- the size of a fingernail -- capable of processing a mind-boggling 1 trillion calculations per second. The chip, which Intel claims is the fastest ever made, could start being used commercially "in five years, if not sooner," Intel Chief Technology Officer Justin Rattner says. I guess five years may not be fast enough for some people playing the stock.

Intel has been on a shallow uptrend since last summer, and the technicals for the stock have been improving lately. INTC has a solid S&P 4 STAR (out of 5) buy rating with a 12-month price target of $25. Out of the 27 other analysts who cover the stock, thirteen give it a strong buy, four a moderate buy, nine hold and one gives it a moderate sell. Analysts seem think this is a good stock to own.

Intel's stock went on a steady but subdued rise from a low of $16.75 on June 13, 2006 up 34.3% to a high of 22.50 on November 17, 2006. The stock is now about 7.6% below its 52-week high. Could this new innovative chip design be just the thing to help the stock climb for the next few years?

Other technology companies like Advanced Micro Devices (NYSE:AMD), International Business Machines (NYSE:IBM), Sun Microsystems (NASDAQ:SUNW), Hitachi Ltd. (NYSE:HIT), Hansen Natural (NASDAQ:TXN) and Applied Materials (NASDAQ:AMAT) will probably need to play catch-up for a while to match Intel's latest chip advancement. A potentially expensive prospect in this extremely competitive landscape. Even AMD's recent new technology announcement may not be enough to counter this news from Intel.

For a neutral hedged play on INTC, I would consider a July covered call at the $20 level. There is even a dividend on the stock with a 2.1% annual yield.

Vic Schiller is an analyst with attitude at Investors Observer. DISCLOSURE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.