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.

TheStreet.com's Jim Cramer says many stocks, considered frothy at one time, have turned into good turnaround stories.

Here's still one more version of a short-seller's nightmare. What happens when froth turns to investible? What happens when you see behavior that clearly indicates froth and then, somehow, the fundamentals change, and the stock takes off?

We have seen that recently in so many situations that it is pretty dazzling. It was one thing to see Genworth (NYSE: GNW) (Cramer's Take) back from the dead on its own.

Analyst upgrades:

• B. Riley upgraded Finish Line (NASDAQ: FINL) to Buy from Neutral to reflect the potential for improving trends in second half of 2009. The firm raised its target on shares to $10.50 from $9.
• Merriman upgraded OptionXpress (NASDAQ: OXPS) to Neutral from Sell following the company's better than expected Q2 results. The firm notes higher commissions per trade more than offset weak DARTs and the decline in customer additions in the quarter.
• RBC Capital upgraded Gardner Denver (NYSE: GDI) to Outperform from Sector Perform and raised its target to $34 from $28 citing the additional scale of restructuring, better tone to end-markets, and few downside catalysts. Baird upgraded Gardner Denver to Outperform from Neutral and raised its target to $35 from $32 based on a bottom in fundamentals and compelling valuation.
• BE Aerospace (NASDAQ: BEAV) was upgraded to Outperform from Market Perform at FBR Capital.
• Shire (NASDAQ: SHPGY) was upgraded to Perform from Underperform at Oppenheimer.
• UnitedHealth (NYSE: UNH) was upgraded to Outperform from Neutral at Credit Suisse.

TheStreet.com's Jim Cramer says you'll miss some great opportunities if you blindly believe all the bad news.

You want a rebuke to the "never-ending woes of commercial and residential real estate mortgage bonds"? You get one every day in this market, and today is no different. Look at what is up big today: Genworth (NYSE: GNW) (Cramer's Take), Lincoln National (NYSE: LNC) (Cramer's Take), Wyndham (NYSE: WYN) (Cramer's Take), Regions Financial (NYSE: RF) (Cramer's Take) and Zions (NASDAQ: ZION) (Cramer's Take). Each in its own way needs the residential or commercial real estate markets to be robust to thrive, and if the myriad articles I read about the horrible state of the mortgage bond market and the dim commercial real estate prospects were true, why would you be making money in Wyndham, a gigantic timeshare company? How could Regions and Zions be rallying? They are among the worst of the worst; unless you consider Genworth and Lincoln National, which are supposed to be roadkill because of all of their mortgage bonds.

Prudential Financial (NYSE: PRU) used to have an advertisement offering consumers a piece of the rock (Gibraltar). Now Hank Paulson's $810 billion Troubled Asset Recovery Plan (TARP) has replaced Pru's rock. Insurance companies around the world are angling to buy a Savings & Loan (S&L) so they can apply for some of that money. So I think it's time to create a mutual fund that will be used to buy an S&L so that the average citizen can get some of that money as well.

Not only are U.S. insurance companies on the hunt for an S&L, there's a European insurer seeking some of our tax dollars as well. The U.S. insurers seeking an S&L include Hartford Financial Services Group (NYSE: HIG), a life and property insurer that has been hit by investment losses, Genworth Financial (NYSE: GNW) and Lincoln National (NYSE: LNC). And the European insurer in question is Amsterdam's Aegon AG, which wants to buy Suburban Federal Savings Bank.

I've been too patient waiting for my share of the TARP. Here's an idea that will make it affordable for the average taxpayer to buy an S&L so we can apply for some of that money -- which is really our money -- as well. We should start a mutual fund and once it has collected enough cash, the fund could purchase a little S&L and then apply for some of that TARP money. With banks, insurance companies and automobile manufacturers getting their piece of the TARP, it's our turn now.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Hartford Financial (NYSE: HIG) closed at $62.06 Thursday. HIG October option implied volatility of 52 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Travelers (NYSE: TRV), a leading property casualty insurer, closed at $44.61 Thursday. TRV October option implied volatility of 37 is above its 26-week average of 32 according to Track Data, indicating larger price movement.

Genworth Financial (NYSE: GNW) closed at $15.02 Thursday. GNW October option implied volatility of 71 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

XL Capital (NYSE: XL), provider of global reinsurance coverage, closed at $18.63 Thursday. XL October option implied volatility of 78 is above its 26-week average of 73 according to Track Data, suggesting larger movement.

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

TheStreet.com's Jim Cramer says our problems are so widespread, he sees lots more IndyMacs before we're out.

You don't need me to tell you it's awful out there. You don't need me to tell you that there's no quick fix for any of these things. But what might help you understand why it feels so bad this time is that I have never, in my career, seen so many companies go off track at the same time. This is one unbelievable moment, and it is made more horrible by the day as companies' stocks just get pummeled, causing people to then question the very viability of the companies involved.

First, obviously, are Fannie Mae (NYSE: FNM) (Cramer's Take) and Freddie Mac (NYSE: FRE) (Cramer's Take). We don't know what will happen, but we do know that their futures are much darker than their pasts. Their best hope: a Democrat becomes president and shows the usual love to both. But as investments, they are pretty much perma-losers going forward. The losses are that heavy. Yes, it is true that two years from now they will be better, but will the government let them limp through to that? View them as calls on a Democratic win.

We all know that Citigroup (NYSE: C) (Cramer's Take), Wachovia (NYSE: WB) (Cramer's Take), Washington Mutual (NYSE: WM) (Cramer's Take) and National City (NYSE: NCC) (Cramer's Take) are in trouble. Bank of America (NYSE: BAC) (Cramer's Take) says it isn't in trouble, but obviously the market doesn't believe management because the stock failed to rally when it said its dividend was safe. Any short-selling hedge fund could hire 30 actors and have them line up at a Washington Mutual or two and get a bank run going. Then we would have to hear about a "hasty" Treasury department plan to bail out WM. Hasty? How can these guys not see it coming?

Countrywide Financial Corp. (NYSE: CFC) -- implied volatility decreases after Federal Reserve rate cut. CFC, a U.S. home mortgage lender, closed at $19.88. Bank of America says, "We're sticking with our Buy on CFC given several competitive advantages which should help over the long-term." CFC September straddle is priced at $1.25. CFC October option implied volatility of 65 is near its 26-week average of 64 according to Track Data, suggesting non-directional risks.

Genworth Financial Inc. (NYSE: GNW) -- elevated volatility decreases after rate cut. GNW is a financial security company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of 15 million customers. GNW closed at $30.45. GNW over all option implied volatility of 31 is above its 26-week average of 28 according to Track Data, suggesting larger risk.

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

Greenlight Capital is a very interesting and successful hedge fund ran by value investing superstar David Einhorn. The fund has annualized returns at 27% per year for the last 10 years. Einhorn's investment style is especially interesting because he is not afraid to make large, focused bets and because he specializes in special situations, specifically spinoffs.

Focus investing is a concept which has recently seen a resurgence due to the success of Mohnish Pabrai and many other focused hedge funds such as Greenlight. As I recently covered here, spinoff investing is a compelling method of investing which I consider to allow for "structural undervaluation."

Interestingly, Einhorn isn't a one horse pony when it comes to investing. He's also a very talented poker player. In fact, he came in 18th (of 8,773) in the 2006 World Series of Poker for which he took home almost $660,000. This is pertinent because many people believe there is a correlation between excelling in trading/investing and doing well in poker.

MOST NOTEWORTHY: Jamba, Inc (JMBA), Quiksilver Inc (ZQK), Volcom, Inc (VLCM) and Interactive Data Corp (IDC) were today's noteworthy downgrades:

• Oppenheimer believes Jamba (NASDAQ: JMBA) is in the early stages of a solid top- and-bottom-line growth story and is one of the few opportunities today that offers sizable square foot growth, revenue and earnings growth, all with several years of visibility.

• Quiksilver Inc (NYSE: ZQK) was initiated with an Accumulate rating and $14 target at ThinkEquity.

• ThinkEquity also initiated shares of Volcom Inc (NASDAQ: VLCM) with a Buy rating.

• AG Edwards started Interactive Data Corp (NYSE: IDC) with a Buy rating.

OTHER INITIATIONS:

• Merrill Lynch resumed coverage of Merck & Co, Inc (NYSE: MRK) with a Neutral rating.

• Matrix USA started coverage of Loral Space & Communications Ltd (NASDAQ: LORL) with a Strong Buy rating and $72 intrinsic value.

• AG Edwards initiated shares of Atheros Communications, Inc (NASDAQ: ATHR) with a Buy rating.

• Stifel initiated Peet's Coffee & Tea, Inc (NASDAQ: PEET) with a Hold rating.

• Bear Stearns started Genworth Financial, Inc (NYSE: GNW) with an Outperform rating and $42 target.

• Morgan Stanley started Nova Chemicals Corp (NYSE: NCX) with an Equal Weight rating.

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