Analyst Upgrades

• Air Products (APD) to buy from hold at Deutsche Bank.
• Zimmer (ZMH) to outperform from neutral at RW Baird.
• SunPower (SPWRA) to buy from hold at Jefferies.
• Brocade (BRCD) to buy from hold at Wunderlich and at ThinkEquity.
• Duke Energy (DUK) to neutral from underperform at BofA/Merrill.
• NewStar Financial (NEWS) to outperform from market perform at Keefe Bruyette.
• Hormel Foods (HRL) to hold from sell at Soleil.
• Inspire Pharma (ISPH) to hold from sell at Duncan-Williams.
• Alnylam (ALNY) to buy from neutral at Roth Capital.
• Weight Watchers (WTW) to equal weight from underweight at Morgan Stanley.
• Raytheon (RTN) and Toreador Resources (TRGL) to outperform from sector perform at RBC Capital.

Continue reading Analyst Calls: BRCD, CREE, DUK, HRL, MOLX, RTN, SPWRA, VCLK, WTW ...

Analyst Calls: BRCD, CREE, DUK, HRL, MOLX, RTN, SPWRA, VCLK, WTW ... originally appeared on BloggingStocks on Fri, 18 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Sprint (S) was upgraded to neutral from underweight at Piper Jaffray.
• Cree (CREE) was upgraded to outperform from market perform at Morgan Keegan.
• Brocade (BRCD) was upgraded to outperform from market perform at JMP Securities.
• JPMorgan upgraded WuXi PharmaTech (WX) to overweight from neutral.
• Barclays upgraded ITC Holdings (ITC) to overweight from equal weight.
• Centene (CNC) was upgraded to outperform from underperform at Oppenheimer.
• Senior Housing (SNH) was upgraded to buy from hold at Jefferies.
• UBS upgraded Hovnanian (HOV) to neutral from sell.
• GeoResources (GEOI) was upgraded to accumulate from neutral at Madison Williams.
• Compellent (CML) was upgraded to hold from sell at Canaccord.

Continue reading Analyst Calls: BRCD, CCE, DPS, HOV, JOYG, KMB, KO, PEP, S, ...

Analyst Calls: BRCD, CCE, DPS, HOV, JOYG, KMB, KO, PEP, S, ... originally appeared on BloggingStocks on Tue, 16 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Intel (INTC) was upgraded to buy from neutral at UBS.
• Wells Fargo upgraded MetroPCS (PCS), Coventry Health (CVH) and Scientific Games (SGMS) to outperform from market perform.
• Estee Lauder (EL) was upgraded to overweight from equal weight at Barclays.
• Simon Property (SPG) was upgraded to buy from hold at Jefferies.
• Citigroup upgraded BreitBurn Energy (BBEP) to buy from hold.

Continue reading Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ...

Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ... originally appeared on BloggingStocks on Mon, 08 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

It's all well and good to say a stock posting improving earnings is a good buy with upside potential. But how much upside? The truth is that picking stocks capable of dramatic gains -- potentially as much as doubling your money -- is much harder. That's because charts don't offer much information for big moves like this, and efficient market theory argues against such short-term performance.

But finding doublers, while difficult, is not impossible.

Continue reading Three Stocks That Could Double in the Next Year

Three Stocks That Could Double in the Next Year originally appeared on BloggingStocks on Wed, 08 Sep 2010 16:30:00 EST. Please see our terms for use of feeds.

The tail-end summer heat has been heavily attributable to the mergers and acquisitions blaze. Companies are putting their cash to work on public companies fetching discounted equity prices in a market environment favoring safety (e.g., gold and bonds).

Recently, Hewlett-Packard (HPQ) edged out Dell (DELL) for the 3Par deal award. With an eye toward the future, HP displayed their powerful desire to own a piece of the data storage and cloud computing pie. Since Dell ended empty-handed, it's only a matter of time before the next stock is a tech heavyweight's prime target.

Continue reading Is Brocade the Next 3Par?

Is Brocade the Next 3Par? originally appeared on BloggingStocks on Wed, 08 Sep 2010 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: End of Day Cheers (GS, BRCD, DELL, V, GOOG)

Closing Bell: End of Day Cheers (GS, BRCD, DELL, V, GOOG) originally appeared on BloggingStocks on Fri, 21 May 2010 16:20:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Janney Montgomery upgraded MasterCard (MA) to buy from neutral. The firm has a $250 price target on the stock.
• Lazard upgraded Frontline (FRO) to hold from sell following the better than expected Q1 report.
• Knight Capital (NITE) was upgraded at BMO Capital to outperform from market perform. The firm cites valuation and improved fundamentals for the downgrade. The firm has an $18 price target on the stock.
• Royal Dutch Shell (RDS.A) was upgraded to overweight from equal weight at Barclays.
• Carnival (CCL) was upgraded to neutral from sell at Goldman.
• Computer Sciences (CSC) was upgraded to buy from hold at Stifel Nicolaus.

Continue reading Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ...

Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ... originally appeared on BloggingStocks on Fri, 21 May 2010 09:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• American International Group Inc. (AIG) posted a big loss and warned it may require additional assistance.
• Athenahealth (ATHN) shares sank after it delayed earnings and its annual report, and warned of restatements.
• Barnes & Noble Inc. (BKS) Q3 sales jumped on popularity of the Nook reader but same-store sales declined.
• Brocade Communications Systems Inc. (BRCD) disappointing report and guidance caused a sell-off in shares.
• Dell Inc. (DELL) acquisitions and better-than-expected earnings may not be enough to stop shrinking market share.
• Gap Inc. (GPS) rose after it beat earnings estimates, raised its dividend and announced stock buybacks.

Continue reading Earnings Highlights: AIG, Dell, Gap, Heinz, Macy's, RadioShack, Sears ...

Earnings Highlights: AIG, Dell, Gap, Heinz, Macy's, RadioShack, Sears ... originally appeared on BloggingStocks on Sat, 27 Feb 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Kicking Confidence Under the Belt (SCHW, BRCD, PALM, THC, STT, SPG, BAM)

Closing Bell: Kicking Confidence Under the Belt (SCHW, BRCD, PALM, THC, STT, SPG, BAM) originally appeared on BloggingStocks on Tue, 23 Feb 2010 16:00:00 EST. Please see our terms for use of feeds.

eBay (NASDAQ: EBAY) closed at $22.70. EBAY is scheduled to report Q3 EPS after the market close on October 21. EBAY November call option implied volatility closed at 38, puts at 45, January is at 35, puts at 43; verses its 26-week average of 43, according to Track Data, suggesting non-directional price movement

Brocade (NASDAQ: BRCD) is recently trading at $8.30 in pre-open trading, above its close of $7.65. BRCD has put itself up for sale according to the Wall Street Journal. BRCD is data storage and networking firm. BRCD October option implied volatility is at 55, January is at 53; near its 26-week average of 56, according to Track Data, suggesting non-directional price movement.

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

Options Update: eBay volatility flat into EPS and PayPal commentary originally appeared on BloggingStocks on Mon, 05 Oct 2009 08:00:00 EST. Please see our terms for use of feeds.

Minyanville Professor Sean Udall dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

The Brocade Communications (NASDAQ: BRCD) deal is interesting for a couple reasons. First of all -- hey it's a deal. So yes, deals can still get done, even in this market.

Second, and more importantly, BRCD is paying $3 billion or almost exactly three times the cash and investments on Foundry Networks' (NASDAQ: FDRY) books. So in essence, 1/3 of the deal price is being funded by the liquidity of Foundry Networks balance sheet. Looking at the technology landscape, there are a whole bunch of companies that look like FDRY from a balance sheet perspective.

Also, this deal highlights the fact that even in a market full of angst, companies do look forward to see what business trends they want to exploit. My take is BRCD is seeing it wants a bigger part of the bandwidth pie going forward and the two companies may have complementary technology to help extend their current reach.

Brocade (BRCD) wheeling and dealing originally appeared on BloggingStocks on Tue, 22 Jul 2008 13:10:00 EST. Please see our terms for use of feeds.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Brocade and Foundry switch on a $2.9 billion deal originally appeared on BloggingStocks on Tue, 22 Jul 2008 10:56:00 EST. Please see our terms for use of feeds.

Ex-Brocade (NASDAQ: BRCD) CEO Gregory L. Reyes Jr. has been sentenced to 21 months in prison with a $15 million fine for orchestrating a scheme to backdate stock options at the company, illegitimately shifting wealth from the company's owners to its executives.

Judge Charles R. Breyer of Federal District Court in San Francisco, who sentenced Mr. Reyes, said that his efforts to obstruct justice had led to the stiff penalty: "This offense is about honesty. Every time Gregory Reyes falsified documents, repeatedly, over a three-year period, he was lying. That is the core of the defendant's criminal conduct."

Reyes was the first executive to be tried on criminal charges related to options backdating, and he was convicted onten counts of securities fraud.

According to the New York Times, Reyes cried while speaking to the judge before the sentencing: "I'm sorry," Mr. Reyes said, between sips of water and long pauses to compose himself. "There is much that I regret, and if I could turn back the clock, I would."

Is he really remorseful? He'll remain free without bail until a federal appeals court hears his case. If he's so full of remorse, why doesn't he just go to jail for a few months and skip the appeal?

It's good to see that law enforcement is cracking down on at least a few executives who think public companies should be used as their own personal honey pots. Now we need to see boards of directors hold their executives to higher standards too.

Ex-CEO of Brocade gets prison for options backdating originally appeared on BloggingStocks on Thu, 17 Jan 2008 14:22:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Caris initiated shares of Athenahealth (NASDAQ: ATHN) with an Average rating and $26 target, as they believe an unachievable growth rate is priced into shares at current levels.
• Brocade Communications Systems (NASDAQ: BRCD) was initiated with a Neutral rating at UBS.
  
• Royal Bank of Scotland (NYSE: RBS) was initiated with an Underweight rating at Lehmen.
  
• JP Morgan resumed coverage of Human Genome Sciences (NASDAQ: HGSI) with a Neutral rating.

• Lazard resumed coverage of Zoran (NASDAQ: ZRAN) with a Hold rating and Sigma Designs (NASDAQ: SIGM) with a Buy rating.
  
• Stifel initiated Tortoise Energy Capital (NYSE: TYY) with a Buy rating and $32 target.
  
• HSBC initiated DSG International (OTC: DSITY) with an Overweight rating.

Analyst initiations: ATHN, BRCD, RBS and HGSI originally appeared on BloggingStocks on Thu, 01 Nov 2007 11:20:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• First Albany sees upside potential in GameStop (NYSE: GME) through 2008 and upgraded shares to Strong Buy from Buy.

• JMP Securities upgraded Brocade (NASDAQ: BRCD) to Market Outperform from Market Perform on valuation.

• Tween Brands (NYSE: TWB) was upgraded to Buy from Sell on valuation at Matrix USA.

• JMP Securities' checks indicate Altec Lansing's im600 iPod docking station/FM radio is selling better than expected, and upgraded shares of Plantronics (NYSE: PLT) to Market Outperform from Market Perform.

• Merrill upgraded shares of Arcelor Mittal (NYSE: MT) to Buy from Neutral to reflect the company's inclusion in the Euro Stoxx 50 Index in September as well as the positive global carbon steel environment...

• Pepsi Bottling (NYSE: PBG) was upgraded to Overweight from Neutral at HSBC.

• Morgan Stanley raised RF Micro Devices (NASDAQ: RFMD) to Equal Weight from Underweight.

• Matrix upgraded Barr Pharmaceuticals (NYSE: BRL) to Buy from Hold.

• Jefferies upgraded Advanced Medical (NYSE: EYE) to Hold from Underperform.

Analyst upgrades: BRCD, GME, PBG and RFMD originally appeared on BloggingStocks on Fri, 24 Aug 2007 10:41:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman believes the turnaround at Arden B is well underway and both it and the Wet Seal chains have tremendous opportunities for long-term growth, initiating The Wet Seal (NASDAQ: WTSLA) with a Buy rating.

• Pacific Growth is positive on Brocade's (NASDAQ: BRCD) diversification into new products and services, starting shares with a Buy rating.

• Banc of America initiated shares of InterActiveCorp (NASDAQ: IACI) with a Neutral rating.

• William Blair believes the newly-formed CME Group (NYSE: CME) has an even more dominant competitive position within the growing futures exchange industry, reinstating shares with an Outperform rating.

• JP Morgan said Canada is an attractive wireless market and that Rogers Communications (NYSE: RCI) is well positioned, starting shares with an Overweight rating...

• Deutsche Bank initiated Waters Corp (NYSE: WAT) with a Hold rating.

• Goldman started Infinera Corp (NASDAQ: INFN) with an Equal Weight.

• Kaufman reinstated Savvis (NASDAQ: SVVS) with a Hold.

• Pacific Growth initiated Network Appliance (NASDAQ: NTAP) with a Buy.

Analyst initiations 7-17-07: BRCD, CME, IACI and NTAP originally appeared on BloggingStocks on Tue, 17 Jul 2007 11:07:00 EST. Please see our terms for use of feeds.

Brocade (NASDAQ: BRCD) has agreed to settle its options back-dating issues with the SEC by paying a fine of $7 million. With over a hundred companies still working out accounting problems and, in some cases, SEC problems with back-dating, the settlement may open the door to these issues to move toward resolution.

As The Wall Street Journal pointed out [subscription required], the SEC had to debate several tough questions before coming to an initial decision about how to handle all of the companies involved in the practice: "Were shareholders actually hurt by the backdating of options, by the revelation of potential wrongdoing or by being deceived about how executives were compensated??

Investors were hurt. For one, when executives exercise options, the company is paid the amount of the strike price. If that price has been lowered, the company receives less money. Public companies are also supposed to account for options as an expense. Changing options grant dates can lead to restatements of financial reports, which does not inspire investor confidence.

And, perhaps most important, there is the matter of the time and cost to board for examining options issues. It is not only a distraction, it is a cost. So, it is not simply a question of deception. There is a very real cost to options back-dating.

Douglas A. McIntyre is a partner at 24/7 Wall St.

At last, a fine for options back-dating originally appeared on BloggingStocks on Thu, 31 May 2007 10:10:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Brocade Communications Systems Inc (NASDAQ: BRCD) will pay a $7M penalty to settle allegations that it issued stock option grants improperly, according to the Wall Street Journal.
• The Wall Street Journal reported that The Coca-Cola Company (NYSE: KO) and Cargrill have joined together to market Rebiana, a new calorie-free natural sweetener.
• The Financial Times reported that Morgan Stanley (NYSE: MS) is set to acquire Australia's Investa Property Group for A$4.7B in cash, a move that will boost its real estate presence in the Asia-Pacific region.
• Barron's Online's "Weekday Trader" reported that tech stocks could see a "meltup" this summer and those worth evaluating for a possible purchase may include Ciena Corporation (NASDAQ: CIEN) and Alcatel-Lucent ADS (NYSE: ALU).
• According to SEC data, Orbis Management Investment crossed the 10% ownership threshold of Cheniere Energy Inc (AMEX: LNG) on May 10 and purchased another 112,516 shares on the open market for $4.05M, Barron's Online's "Inside Scoop" column reported.

• The Australian Financial Review reported that ABC Learning Centres may look to the U.S. for its next large acquisition. Operators in the space include Bright Horizons Family Solutions Inc (NASDAQ: BFAM).

Newspaper wrap-up 5-31-07: Morgan Stanley to buy Investa originally appeared on BloggingStocks on Thu, 31 May 2007 09:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• UBS upgraded General Electric Co (NYSE: GE) to Buy from Neutral with a $14 target based on valuation and expectations for strong earnings in its gas turbine business.

• Brocade Communications Systems Inc (NASDAQ: BRCD) was upgraded by Goldman Sachs to Buy from Neutral with an $11 target to reflect the cost savings associated with the McData acquisition. Bear Stearns also upgraded Brocade to Outperform from Peer Perform following its Q1 report and $200 buyback; Raymond James upgraded shares to Outperform from Market Perform.

• Deutsche Bank upgraded Netease.com Inc ADS (NASDAQ: NTES) to Hold from Sell with a $23 target following the company's Q4 report.

• Credit Suisse upgraded Reuters Group ADS (NASDAQ: RTRSY) to Outperform from Neutral citing the company's favorable outlook.

• Citigroup upgraded Moody's Corp (NYSE: MCO) to Buy from Hold with a $77 target as they believe weakness surrounding the company's quarter has created a buying opportunity.

• William Blair upgraded Career Education Corp (NASDAQ: CECO) to Market Perform from Underperform.

• BWS Financial upgraded shares of CuraGen Corp (NASDAQ: CRGN) to Strong Buy from Buy with an $8 target following its recent sell-off. The firm believes the concerns that CuraGen will not be able to sell its 454 Life Science stake are baseless.

• Caris upgraded Marvell Technology Group (NASDAQ: MRVL) to Above Average from Average following its solid quarter as they believe Marvell has worked through the excess inventory in storage and wireless LAN. Needham also upgraded Marvell Tech to Buy from Hold with a $26 target following its Q4 results.

Analyst upgrades 2-27-07: UBS turns the lights on at General Electric originally appeared on BloggingStocks on Tue, 27 Feb 2007 10:44:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Dell (DELL) and Brocade (BRCD) topped today's modest-sized upgrade list.

• Needham upgraded Dell, Inc. (NASDAQ:DELL) to Buy from Hold with a $35 target, citing the PC maker's preliminary third quarter results that suggest a turning point in margins. Bear Stearns upgraded Dell to Outperform from Peer Perform on the news.
• Brocade Communications Systems, Inc. (NASDAQ:BRCD) was upgraded by Needham to Buy from Hold and a $10.50 target; The firm is positive on the data storage networker's outlook and execution following their strong forth-quarter report.

OTHER UPGRADES:

• Deere & Co. (NYSE:DE) was upgraded to Outperform from Market Perform at Wachovia based on the belief the equipment maker's 2007 guidance is conservative.
• Rudolph Technologies, Inc. (NASDAQ:RTEC) was upgraded to Buy from Sell at Matrix USA, citing valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst upgrades 11-22-06: Dell gets two upgrades originally appeared on BloggingStocks on Wed, 22 Nov 2006 11:30:00 EST. Please see our terms for use of feeds.