Friedman Billings downgraded Countrywide (NYSE:CFC) from "market perform" to "underperform" according to Briefing.com. The news service also reports that William Blair downgraded Getty Images (NYSE:GYI) to "market perform" from "outperform."

Citigroup downgraded Yahoo! (NASDAQ:YHOO) to "sell" according to Bloomberg.

MOST NOTEWORTHY: EMC Corp, Blue Nile, Getty Images and Sonus Networks were today's noteworthy initiations:

• EMC Corporation (NYSE: EMC) was initiated with a Buy rating and $24 target at Banc of America as they believe the company's core business is undervalued and should benefit from penetration of new market segments. Deutsche Bank views shares of the stock as fully valued at current levels, starting shares off with a Hold rating and $20 target. Jefferies believes the divergence in valuation of core EMC and majority-held VMWare Inc (NYSE: VMW) creates an attractive entry point. The firm started EMC shares with a Buy rating and $25 target.
  
• CIBC finds shares of Blue Nile (NASDAQ: NILE) fairly valued and sees challenges as competition increases. The firm started shares with a Sector Performer rating.
  
• CIBC also initiated shares of Getty Images Inc (NYSE: GYI) with a Sector Performer rating, as the firm believes the company's earnings visibility is limited while the business model is in transition.
  
• Coverage of Sonus Networks Inc (NASDAQ: SONS) was resumed with an Overweight rating and $8 target at Thomas Weisel. Their checks indicate the company is experiencing increased order activity in 2H07, and they expect an improved Q3 followed by a very strong Q4.

OTHER DOWNGRADES:

• Credit Suisse Group (NYSE: CS) was initiated with an Overweight rating at Morgan Stanley.
  
• Oppenheimer initiated Consolidated Communications Holdings Inc (NASDAQ: CNSL) with a Buy rating and $24 target.
  
• UBS initiated the U.S. homebuilding sector with a Pessimistic outlook.
  
• UBS initiated shares of Nvidia Corporation (NASDAQ: NVDA) with a Neutral rating and $37 target.
  
• Bear started shares of The Dow Chemical Company (NYSE: DOW) with a Peer Perform rating.
  

Time Warner Inc.'s (NYSE:TWX) AOL unit recently announced the availability of a beta version of BlueString, a free site that enables users to easily upload, store, manage, create and share many kinds of digital media. It will centralize and act as a backup for photos, videos and music stored externally for users.

BlueString provides the ability to manually (or even automatically) upload personal media and to create rich multimedia shows that can be shared with family and friends. An innovative feature called "String it" makes it easy to collaborate, allowing several people to add media assets to one show.

BlueString offers up to 5 GB of free online storage and, beginning this fall, any user with an active email address from any provider can easily register to use this product for free. An upgrade to preserve online media with the ability to upgrade to 50 GB is available at $99 per year. Users can also invite private groups of friends and family to view their personal media collection or even embed their media on a Website or blog. This concept was created by AOL and is to be powered by the Xdrive operations.

It sounds like the real winner will be Joe Q. Public. Once free storage is offered by one content provider it tends to happen rapidly elsewhere. In fact, this is somewhat an evolution of the obvious -- but a cool obvious. This entire push will probably go outside of AOL, beyond what is already available. Google (NASDAQ:GOOG) has YouTube, Yahoo! (NASDAQ:YHOO) has its Briefcase and Microsoft (NASDAQ:MSFT) has Live. Now the competition will likely boil down to which company one-ups the others.

This online media storage and quasi-available-to-public feature is also going to continue the fight against Getty Images (NYSE:GYI) for smaller end-user media buyers.

MOST NOTEWORTHY: EDO Corp, General Motors, Cameron, Getty Images and Micrus Endovascular were today's noteworthy downgrades:

• EDO Corporation (NYSE: EDO) was downgraded to Neutral from Outperform at Credit Suisse following the acquisition by ITT Corporation (NYSE: ITT). Shares were also downgraded to Market Weight from Overweight at Thomas Weisel and to Hold from Buy at B&T Capital.
  
• Goldman downgraded shares of General Motors Corporation (NYSE: GM) to Neutral from Buy to reflect risk to the company's international and the slowing U.S. economy. Further, Goldman believes expectations for a deal over healthcare costs with unions are now priced into the stock.
  
• Wachovia downgraded Cameron International (NYSE: CAM) to Market Perform from Outperform on valuation.
  
• Kaufman Bros. downgraded shares of Getty Images Inc (NYSE: GYI) to Sell from Hold to reflect reduced expectations following the company's announced price reductions.
  
• CIBC downgraded shares of Micrus Endovascular Corporation (NASDAQ: MEND) to Sector Performer from Outperformer following the company's lowered guidance..

OTHER DOWNGRADES:

• BB&T downgraded Champion Enterprises (NYSE: CHB) and Palm Harbor Homes (NASDAQ: PHHM) to Hold from Buy.
  
• Stifel downgraded HCP Inc (NYSE: HCP) and Medical Properties Trust Inc (NYSE: MPW) to Hold from Buy.
  
• Goldman downgraded E-Trade Financial Corporation (NASDAQ: ETFC) to Neutral from Buy.
  
• Kellwood Company (NYSE: KWD) was downgraded to Neutral from Buy at Broadpoint.

MOST NOTEWORTHY: Comcast (CMCSA), Time Warner Cable (TWC), CNet Networks (CNET), Coviden (COV) and I.D. Systems (IDSY) were today's noteworthy initiations:

• Banc of America resumed coverage of Comcast (NADAQ: CMCSA) and Time Warner Cable (NYSE: TWC) with Buy ratings and $32 and $43 targets, respectively.

• Stanford started CNet (NASDAQ: CNET) with a Buy rating and $10 target, as the company is well positioned to benefit from its developing web properties.

• Bear Stearns expects shares of Covidien (NYSE: COV) to move up, starting shares with an Outperform rating, as the management transforms the company from a cash flow focused conglomerate division into a faster-growing, nimble competitor.

• Merriman said I.D. Systems (NASDAQ: IDSY) is uniquely positioned in the wireless asset tracking market given its focus on industrial machinery and material handling equipment, starting shares with a Buy rating...

OTHER INITIATIONS:

• Comverse (OTC: CMVT) was initiated with a Neutral rating at Merriman.

• Lehman started Getty Images (NYSE: GYI) with a Equal Weight rating and ShoreTel (NASDAQ: SHOR) with an Overweight rating.

• Jefferies initiated Harmonic (NYSE: HLIT) with a Buy rating.

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

August has been positively brutal for Getty Images Inc. (NYSE: GYI); its second-quarter results came in lower than the Street expected and investors started fleeing, sending the stock price down from the mid $40s to the low $30s in a couple of days. Personally, I think the stock has been punished too much, and investors have a chance to grab this one at a temporary low.

To be sure, Getty faces problems. The main issue is that technology has greatly increased competition, and Getty hasn't yet figured out how to adapt to these changes. Between the proliferation of digital cameras, the emergence of payment sites that can be used by amateur photographers, and ever-improving search capabilities, it has become much easier and cheaper to find images on the web. While it's still by far the biggest company in the images business, Getty is not necessarily the first or last place people go to find images, and so its revenue growth has been declining.

Getty has started to adjust: it acquired iStockPhoto.com, a site that sells less expensive and less famous images, and it has also changed its licensing terms. Getty is also entering the music business with its acquisition of Pump Audio. Revenues are climbing at iStockPhoto, and Getty's acquisition of MediaVast, another image company, will also help boost its revenues going forward. CEO Jonathan Klein is a savvy manager who, with Mark Getty, revolutionized the images business once with the creation of Getty Images, and he may well be able to find a way to deal with these new adversities.

MOST NOTEWORTHY: Getty Images (GYI), Jackson Hewitt (JTX), Electronic Data (EDS), RC2 Corp (RCRC) and Chipotle Mexican Grill (CMG) were today's noteworthy downgrades:

• Deutsche Bank cut Getty Images (NYSE: GYI) to Sell from Hold citing deterioration in its core business. Gabelli downgraded Getty Images to Hold from Buy after the company lowered guidance to reflect the changing industry dynamics.

• Goldman cut Jackson Hewitt (NYSE: JTX) to Sell from Neutral citing near-term risks that include the renegotiation of the HSBC (HBC)/RAL contract, the DoJ/IRS investigation, and decreasing performance in tax.

• Jefferies downgraded Electronic Data Systems (NYSE: EDS) to Hold from Buy to reflect the company's slowing cash flow improvement.

• Wedbush downgraded RC2 Corp (NASDAQ: RCRC) to Buy from Strong Buy on the lower sales forecast for 2007. Soleil cut shares to Hold from Gradually Accumulate to reflect uncertainty over the Thomas recall and increased competition.

• Chipotle Mexican Grill (NYSE: CMG) was downgraded to Market Perform from Outperform based on valuation...

OTHER DOWNGRADES:

• Lazard downgraded Kyphon (NASDAQ: KYPH) to Hold from Buy.

• SMH Capital cut Aventine Renewable Energy (NYSE: AVR) to Sell from Neutral.

• Credit Suisse downgraded AutoDesk (NASDAQ: ADSK) to Neutral from Buy.

• UBS cut SABMiller (OTC SBMRY) to Reduce from Neutral.

• CIBC downgraded Marvell Tech (NASDAQ: MRVL) to Sector Performer from Outperformer.

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

MOST NOTEWORTHY: Komag Incorporated (NASDAQ: KOMG), commercial mortgage REITs, Getty Images Inc (NYSE: GYI) and Rural/Metro Corporation (NASDAQ: RURL) were today's noteworthy downgrades:

• Komag was downgraded to Neutral from Buy at Craig-Hallum, to Market Perform from Outperform at Piper Jaffray, to Hold from Buy at Deutsche Bank and to Neutral from Outperform at Robert W Baird & Co following the announcement it would be acquired by Western Digital Corporation (NYSE: WDC).
  
• Morgan Stanley downgraded Commercial Mortgage REITs to Underweight from Neutral. Specifically, the firm downgraded shares of Capital Trust, Inc (NYSE: CT) to Equal Weight from Underweight and Gramercy Capital Corp (NYSE: GKK) to Underweight from Equal Weight, citing increased credit spreads and subordination levels.
  
• Getty Images was downgraded to Sell from Hold at Matrix as the firm believes margins are declining and sees downside to their $40/share intrinsic value calculation.
  
• Rural/Metro was downgraded by Ferris, Baker Watts to Neutral from Buy on valuation.

OTHER DOWNGRADES:

• PMI Group Inc (NYSE: PMI) was downgraded to Neutral from Buy at UBS.
  
• Deutsche Bank downgraded Palm, Inc (NASDAQ: PALM) to Sell from Hold.
  
• BMO Capital downgraded shares of Carrizo Oil & Gas Incorporated (NASDAQ: CRZO) to Market Perform from Outperform.
  
• Morgan Stanley downgraded shares of Cemex (NYSE: CX) to Equal Weight from Overweight.
  
• Barnes & Noble Inc (NYSE: BKS) was downgraded to Hold from Buy at Matrix.

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

Late last year, I did an interview with Steve Ellis, who is founder and CEO of Pump Audio. I thought his company filled an import need in the market – and was poised for growth in the YouTube video surge.

Well, Getty Images (NYSE: GYI) is also bullish. That is, the company shelled out $42 million to buy Pump Audio.

Basically, Pump Audio has spent the past six years developing a sophisticated system to license music to digital providers. The catalog has over 100,000 titles and has biggie customers like GE's (NYSE: GE) NBC and Nike (NYSE: NKE).

So, video creators have a way to enhance content (the search engine makes it easy to locate the right music). And, at the same time, music creators can also monetize their creations.

It's a pretty smart idea. It's also a good fit with Getty Images, which focuses on licensing businesses.

To get more insight on all this, you can check out Ellis' interview on BloggingStocks.

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

This morning Getty Images (NYSE: GYI) made its SEC Filings for its 2006 annual report, as well as getting in its 10-Q quarterlies for the following quarters: March 31, 2006; June 30, 2006; September 30, 2006 and March 31, 2007. It has been a year since the company had been current because of past option reviews. You can read the SEC filings at the company site now. Often companies that have been delinquent see shares rise on the "getting current" news, but so far today, there has been little such upside in the stock.

Regardless of the stock performance today and the SEC filing delays, this is a company that is under attack. How would you like to sell digital images for 10 and 20 times what photos can be purchased for elsewhere? How would you like your entire business to be wiki'd out by an instant competitor with a massive stock photo library, and for under $20,000?

Sure, the company has made acquisitions for lower-priced photos and is making some foray in videos. It also is not a business that will fail because the sole position the company gets for live and stock sporting events may be enough to support the entire operations. But longer-term it is hard to see how this company will not face margin pressure every day.

Back a few years ago, you had two choices for stock photos if you were media or a web site: Getty Images, or Bill Gates' CORBIS. Jupiter Media (NASDAQ:JUPM) is also a competitor, and Getty Images actually decided to back out of acquiring the company. Sounds like the monetary value of stock photos just isn't what it used to be. Getty has acquired WireImage, a creator of entertainment and event imagery. It has also acquired PunchStock, a provider of royalty-free images. It has acquired Scoopt and owns iStockPhoto.com. This sounds good, but the underlying fact is that Getty cannot just acquire everyone out there and there are just too many fledgling companies that will go to much cheaper photo sites.

Now you have dozens and dozens of choices, for less and less money. Here is just a partial list of companies that directly compete, or could compete overnight with a wiki'ing of the business model: PhotoBucket, Corbis, Shutterfly, Flickr, Adobe Stock Photos, and StockVault, among many, many others.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

MOST NOTEWORTHY: XM Satellite Radio (XMSR) and Cisco Systems (CSCO) topped today's list of notable downgrades.

• XM Satellite Radio Holdings 'A' (NASDAQ: XMSR) was downgraded by Bank of America to Neutral from Buy, with a $17 target, as they see limited upside potential and significant downside potential if the company doesn't merge with Sirius Satellite Radio (NASDAQ: SIRI).

• Cisco Systems (NASDAQ: CSCO) was downgraded at Prudential and Bank of America to Neutral, citing valuation for the move.

OTHER DOWNGRADES:

• Cablevision Systems 'A' (NYSE: CVC) was downgraded to Neutral from Buy at Bank of America as they believe the Dolan family's $30/share bid is probably their best and final offer.

• Getty Images (NYSE: GYI) was downgraded to Sell from Hold at Kaufman Brothers. They cited the changing stock imaging market, lowered expectations for 2007 and the options review overhang for the downgrade.

• UIL Holdings (NYSE: UIL) was downgraded to Underweight from Hold at BB&T, citing valuation and lowered estimates.

• RBC Capital Markets downgraded Abitibi Consolidated (NYSE: ABY) to Underperform from Sector Performer.

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