Analyst upgrades:

• Citigroup upgraded Nucor (NYSE: NUE) to Buy from Hold to reflect its positive outlook for steel and expectations the company will return to profitability in Q4. Citi raised its target price on shares to $57 from $46.
• Oppenheimer upgraded Given Imaging (NASDAQ: GIVN) to Outperform from Perform to reflect solid PillCam Colon data and expected margin improvement. The firm has a $25 target on shares.
• Deutsche Bank upgraded Genworth (NYSE: GNW) to Buy from Hold following the $600M capital raise as it believes liquidity at the holding company has improved. The firm raised its target on shares to $18 from $7.
• Washington Federal (NASDAQ: WFSL) was upgraded to Outperform from Underperform at FBR Capital.
• Carnival (NYSE: CCL) was upgraded to Sell from Conviction Sell at Goldman.
• Anadarko Petroleum (NYSE: APC) was upgraded to Buy from Hold at Weeden.

The earnings party of last week was full of fun and frolic. For the most part, if you followed my list of recommendations, you would have had your very own "Fiesta de Finance." (See Week in Preview – May 5)

The earnings season is still in full swing and should provide a great deal of action for the companies that will be reporting. But these companies will have to fight through a few new economic barriers. With oil pushing past historic levels and questions beginning to surface concerning the ability of the investor to continue to support a market that has so many headwinds, the mood is likely to shift moving forward. It is time for discipline, short and simple. Now, more than ever investors need a plan. I cover this strategy in my book, The Disciplined Investor.

In the last installment of The Week in Preview, I was looking for party opportunities in honor of Cinco de Mayo. This week, Misery is the theme. That is the only word that comes to mind with oil at a level that you would have never expected, a massive and unrelenting credit and housing crisis and a banking system that is defunct.

Monday - May 12

We start the week with a report from IndyMac Bancorp (NYSE: IMB). This bank is smack in the middle of the housing problem. It is primarily a lending company that facilitates loans for single-family homes. It's also involved in the origination and trading of mortgages. How does that sound to you as an investment? Shares have slid from $23 in October 2007 to an unbelievable level of $3.50 recently. Ouch... If you are a shareholder still holding on with hope and a prayer for something...anything, keep on dreaming. The good news is that the stock is sporting a yield of 29%. But, if you think that yield is going to be maintained, I have a bridge for sale. Estimates are for a loss of $1.92 per share for the quarter.

MOST NOTEWORTHY: Infinera, Dawson Geophysical and Electro-Optical Sciences were today's noteworthy initiations:

• Thomas Weisel said Infinera (NASDAQ: INFN) has unique technology that will result in a sustained competitive differentiation, increases customer diversification and improving margins. The firm started shares with an Overweight rating and $13 target.
  
• Dawson Geophysical (NASDAQ: DWSN) was initiated with a Hold rating and $72 target at Jefferies, as they believe the stock is fairly-valued at current levels.
  
• Jesup & Lamont initiated Electro-Optical Sciences (NASDAQ: MELA) with a Buy rating and $8 target. The believes MELA's Melafind is a breakthrough technology for the diagnosis of melanoma.

OTHER INITIATIONS:

• Piper resumed coverage of PMI Group (NYSE: PMI) with a Neutral rating and $6 target.
  
• Susquehanna initiated Immunocor (NASDAQ: BLUD) and Given Imaging (NASDAQ: GIVN) with Positive ratings.
  
• Merrill started Liberty Entertainment (NASDAQ: LMDIA) with a Neutral rating.

Lots more quarterly reports rolled out this past week, and here are some highlights of earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported more losses and more job cuts.
• Alvarion Ltd.'s (NASDAQ: ALVR) record quarter fuels speculation of a Cisco (NYSE: CSCO) buyout.
• Avon Products Inc.'s (NYSE: AVP) profit rose 61%, buoyed by strength in emerging markets.
• Chevron Corp. (NYSE: CVX) fell short of expectations due to tighter margins.
• CIGNA Corp. (NYSE: CI) had a solid quarter but warned about 2008 earnings.
• Clorox Co. (NYSE: CLX) blamed profit loss on materals costs, and announced acquistion of Burt's Bees.
• Colgate-Palmolive Co. (NYSE: CL) beat estimates by a penny and had strong sales overseas.
• Crocs Inc. (NASDAQ: CROX) beat earnings estimates and revised its full-year forecast.
• Dell Inc. (NASDAQ: DELL) announced it would restate revenues, ahead of its November quarterly report.
• Exxon Mobil Corp. (NYSE: XOM) missed expectations, also due to tighter margins.
• Given Imaging Ltd. (NASDAQ: GIVN) cited FDA approval delays for disappointing results.
• Hertz Global Holdings Inc. (NYSE: HTZ) posted record revenues and appointed a new CFO.
• Humana Inc.'s (NYSE: HUM) positive surprise lifted the share price to a new all-time high.

Given Imaging (NASDAQ: GIVN), the poster-boy for Israeli ingenuity, today announced Q3 numbers that were a bit soft on the revenue line. The company produces the "cool" PillCam technology. Given Imaging has revolutionized the gastrointestinal diagnosis industry with the PillCam video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient and allows for the non-invasive visualization of the GI tract. How cool is that! Sticking a camera into a pill. It's even been a favorite of Cramer.

It's all great to have cutting edge technology, but for an investor, it's all about results. The past few quarters have been quite good, making today's numbers even more disappointing. Homi Shamir, president and CEO of Given Imaging explained the problems: "Revenue in the third quarter and our expected revenue for fiscal year 2007 have been impacted by several factors -- first, a delay in our plan to bring PillCam COLON to the U.S. market this year as a result of our ongoing discussions with the U.S. Food and Drug Administration regarding clearance of PillCam COLON; second, the delay associated with receiving a monetary code for PillCam SB in France which we now expect to occur in the first half of 2008; and third, a shortfall in sales in one of our U.S. regions where actions have been taken to address operational issues."

This is shaping up to be a good second half of '08 story. It seems that the next quarter may be a little soft as well, but once the company solves its problems, look for the stock to head much higher.

Disclosure: Author holds a position in GIVN. He holds no position in any other stock mentioned as of 11/1/07.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.

Among the most sought after goals of medical technology research is the development of minimally invasive methods for the determination of internal disorders. An outfit in Yoqneam, Israel is a leader in the field.

Given Imaging (NASDAQ: GIVN) manufactures diagnostic products for the visualization and detection of disorders of the gastrointestinal tract. Its principal product is a wireless imaging system that features a "PillCam" video capsule that is ingested by the patient. As the pill passes through the G.I. tract, associated system electronics interpret and record the video signals it transmits. The company also offers a dissolvable capsule system that enables physicians to determine whether there are obstructions or strictures in the gastrointestinal tract. General Electric (NYSE: GE) is a major competitor.

The stock has been a steady gainer over the past two weeks, rising on analyst predictions of further product regulatory approvals and speculation regarding the firm's position as a takeover candidate. Also, there has been word that "PillCam" esophageal applications will be covered by National Government Services, the Medicare Part B Carrier serving more than six million individuals in New York, New Jersey, Kentucky and Indiana. Shares are advancing through a positive trading channel. The price is currently consolidating at the base of that channel, suggesting the potential for a turn back toward the top.

Brokers recommend the issue with two "buys," one "hold" and one "sell." Analysts expect a 34 percent average annual growth rate, through the next five years. The GIVN Sales Growth rate (19.83%) and EPS Growth rate (-0.02 to +0.09 yr/yr) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 25 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $18.96 and $32.80. A stop-loss of $25.95 looks good here. Note that the firm is next expected to release quarterly results on, or about, November 1.

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

Among the more valuable outcomes of the marriage between high technology and medicine has been a series of minimally invasive methods for the determination of internal disorders. An outfit headquartered in Yoqneam, Israel is among the leaders in developing such techniques.

Given Imaging (NASDAQ: GIVN) manufactures diagnostic products for the visualization and detection of disorders primarily of the gastrointestinal tract. Its principal product is a wireless imaging system that features a "PillCam" video capsule that is ingested by the patient. As the pill passes through the G.I. tract, associated system electronics interpret and record the video signals it transmits. The company also offers a dissolvable capsule system that enables physicians to determine whether there are obstructions or strictures in the gastrointestinal tract. General Electric (NYSE: GE) is a major competitor.

June was a good month for the company. On the 14th, it received FDA marketing clearance for a version of the PillCam that images the esophagus. Then, on the 27th, came word that Japan's Central Social Health Insurance Committee had approved reimbursement for use of the PillCam endoscope. The stock popped into a bullish "pennant" consolidation pattern on the Japanese news. Prices frequently exit pennants 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 two "buys," one "hold" and one "sell." Analysts expect a 34% growth rate, through the next year. The GIVN EPS Growth rate (102.14%) compares favorably with industry, sector and S&P 500 averages. Institutional investors hold about 34% of the outstanding shares. Over the past 52 weeks, the stock has traded between $17.49 and $32.80. A stop-loss of $26.75 looks good here.

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