Analyst upgrades:

• Citigroup upgraded Lennar (NYSE: LEN) to Buy from Hold as it believes the company's near-term liquidity profile is improved following the $400M debt issuance. The firm raised its target price to $12 from $11.
• Jefferies upgraded Rowan Companies (NYSE: RDC) to Buy from Hold as it believes jack-up drillers will continue to outperform deepwater names. The firm raised its target price to $27 from $20.
• Keefe Bruyette upgraded First Financial (NASDAQ: FFIN) to Market Perform from Underperform to reflect more positive loan data for the Texas banks. The firm raised its target price on shares to $44 from $38.
• MGM Mirage (NYSE: MGM) was upgraded to Overweight from Neutral at JP Morgan.
• Morgan Stanley (NYSE: MS) was upgraded to Outperform from Market Perform at JMP Securities.
• Brinker (NYSE: EAT) was upgraded to Overweight from Equal Weight at Barclays.

Applied Micro Circuits (NASDAQ: AMCC) came up light on its communications component revenue in an otherwise pretty solid quarter. I would use any price weakness to add to or initiate a position in this stock.

Applied Micro falls into one of our themes -- focusing on fallen tech-telecom bubble stock that have survived the bust. The company has good management that has gotten costs under control and has, for the most part, returned the company to growth. In addition, on an adjusted basis, has returned the company back to profitability.

Applied Micro's CEO, Kambiz Hooshmand, has a successful track record of building tech companies and realizing good value for shareholders. Before taking on the top position at Applied Micro, Hoosmand sold his previous company to Cisco (NASDAQ: CSCO).

On the investor conference circuit, Applied Micro's management has not been shy about complaining that Wall Street has not reflected the good work this management team has done in its stock price. Translation: if the stock price does start moving, management may take this company private.

Applied Micro has a healthy balance sheet, is profitable and will return to good growth when all of its end market customers' business picks up. Any price weakness today looks like a good opportunity to get into this stock.