Analyst Upgrades

• Amazon.com (AMZN) was upgraded to buy from neutral at BofA/Merrill.
• Netflix (NFLX) was upgraded to outperform from perform at Oppenheimer and to neutral from sell at Janney Montgomery.
• Janney Montgomery also upgraded BJ's Wholesale (BJ) to buy from neutral.
• RW Baird upgraded Kforce.com (KFRC), SFN Group (SFN) and Young Innovations (YDNT) to outperform from neutral.
• NetSuite (N) was upgraded to neutral from underweight and Select Comfort (SCSS) was upgraded to overweight from neutral at Piper Jaffray.
• Flushing Financial (FFIC) was upgraded to outperform from market perform at Keefe Bruyette.
• National Instruments (NATI) was upgraded to buy from hold at Stifel Nicolaus.
• RBC Capital upgraded MDS Inc. (MDZ) to outperform from sector perform.

Analyst Upgrades

• Best Buy (BBY) was upgraded to top pick from outperform at RBC Capital, as the firm thinks the company's valuation is inexpensive while it will perform well during the holiday season.
• Credit Suisse upgraded CF Industries (CF) to outperform from neutral, citing favorable fundamentals in nitrogen and phosphate markets.
• Canadian Solar (CSIQ) was raised to buy from hold by Jefferies, which cited expectations for higher selling prices next year and cost savings from sourcing more components internally.
• BMO Capital upgraded RC2 Corp. (RCRC) to outperform from market perform as the firm believes that RC2's baby products are performing better than previously expected.
• Ericsson (ERIC) was upgraded to neutral from underperform at BofA/Merril.
• ProLogis (PLD) was upgraded to buy from hold at Stifel Nicolaus.
• Constellation Energy (CEG) was upgraded to outperform from neutral at Macquarie.

Option traders appear to be setting up for a bullish move on Cypress Bioscience, Inc. (CYPB). Traders plowed into 1,305 new call option contracts -- 19.19 times the average volume -- on the stock on Friday. And we know that traders were eager to get into this trade because 100% of the trades came in on the ask price.

Cypress has been in a downtrend since hitting a high around $10.00 in July 2009. The stock closed Friday at $3.39, down 10.79% during the past month.

Let's say you're on the phone with a potential customer. She likes the product and wants to make a purchase. However, you need to fax over an agreement to get a signature. Also, you need to set up a method for payment.

Unfortunately, this takes a few days – and during this time, the lead goes dark. You lost a customer . . .

In today's tough economic times, it's absolutely critical to close customers quickly. But how?

Well, there are some helpful – and affordable technologies to help out.

One of the leaders in web-based business applications – NetSuite (NYSE: N) – posted its Q4 results yesterday. And, while the recession is a drag, the company was still able to keep up its momentum.

Quarterly revenues increased 30.5% to $41.4 million, with 350 new customers (the total is now at 6,600). In fact, the company generated non-GAAP net income of $0.01 per share or $534,000.

• Baird upgraded Western Digital (NYSE: WDC) and Seagate (NASDAQ: NSTX) to Outperform from Neutral citing better than expected industry conditions. The firm believes supply has tightened, resulting in price increases in certain market segments.
  
• RBC Capital upgraded XTO Energy (NYSE: XTO) to Outperform from Sector Perform citing free cash flow and stable growth.
  
• Goldman upgraded Manpower (NYSE: MAN) to Neutral from Sell and raised its target to $29 from $20 based on balanced risk/reward.
• Energy Conversion (NASDAQ: ENER) was upgraded to Buy from Neutral at Piper Jaffray.
  
• Infineon (NYSE: IFX) was raised to Hold from Sell at RBS.
  
• NetSuite (NYSE: N) was upgraded to Acummulate from Source of Funds at ThinkEquity.

In Q2, NetSuite's revenues surged 43% to $36.6 million, a 7% sequential increase. In fact, NetSuite added more than 400 customers in the quarter. Although there was a net loss of $3.1 million, or $0.05 per share, SAP has made recent moves to increase its pricing.

Essentially, NetSuite focuses on the mid-market customer. Keep in mind that there are more than five million of them in the U.S. And, for the most part, the market is fragmented and unpenetrated.

"One group of stocks that has always intrigued us are those whose symbols have one letter," notes George Putnam. The editor of The Turnaround Letter explains, "Odd as this idea may at first seem, it actually makes some sense for a deep value investor. These are often old-line companies with well-known brand names. In some cases the single letter symbols were awarded many decades ago."

After reviewing the 19 stocks with single letter symbols (7 are currently unused), Putnam offers six that he says, have been "beaten down pretty badly and now look particularly appealing."'

"Agilent Technologies (NYSE: A), which makes electronic and bio-analytic measuring devices, was spun out of Hewlett-Packard in 1999. Revenues surged in 2000 as did the stock price, reaching a lofty 162.

"But the company subsequently suffered along with its customers in the communications and technology sectors. However, the financials are sound, including strong cash flow that is supporting a $2 billion share buyback, and management has been restructuring and realigning operations for long-term growth.

MOST NOTEWORTHY:

• Kaufman Bros. believes Drugstore.com (NASDAQ: DSCM) is well-positioned for long-term growth and significant margin expansion, led by share gains in the OTC and prestige beauty verticals. The firm started shares with a Buy rating and $3.25 target.
  
• Merriman initiated Sycamore (NASDAQ: SCMR) with a Neutral rating and prefers to be on the sidelines given the company's concentrated customer base and lack of clarity on strategic priorities and ongoing business operations.
  
• SunTrust Robinson expects the Aflac's (NYSE: AFL) cancer insurance policies in Japan to benefit from concerns about the national health system. Shares were assumed with a Buy rating and $79 target.

• Caris initiated Mylan (NYSE: MYL) with a Buy rating and $18 target.
  
• NetSuite (NYSE: N) was assumed with a Hold rating and $22 target at Deutsche Bank.
  
• Stanford initiated Time Warner (NYSE: TWX) with a Buy rating and $20 target.

NetSuite Inc. (NYSE: N), which develops web-based enterprise resource planning (ERP) software, is making its first acquisition as a public company. That is, the firm is shelling out $26 million for OpenAir.

Founded in 1999, the company develops software that helps services companies to manage projects. Of course, the company uses an on-demand model and has some top-notch partners, such as IBM (NYSE: IBM).

Let's face it, there's much room for efficiency in the services sector. What's more, it's a large market opportunity.

Interestingly enough, NetSuite will invest in the OpenAir software offering for at least the next ten years. No doubt, this will alleviate some of the potential fears of customers.

Although, the acquisition will weigh on future results. NetSuite has increased its 2008 loss estimate from $0.04 per share to $0.04-0.06 per share.

So far in today's trading, NetSuite's shares are down 3% to $22.05.

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.

MOST NOTEWORTHY:

• Oppenheimer initiated California Pizza (NASDAQ:CPKI) with a Perform rating. The firm is neutral on the stock given the company's exposure to California and diminishing returns in new markets.
  
• KeyBanc initiated Lawson Software (NASDAQ:LWSN) with a Hold based on expectations that 1H09 will be challenged by a TTM sales headcount decline and the difficult IT spending environment.
  
• William Blair assumed Bare Escentuals (NASDAQ:BARE) with an Outperform rating. The firm estimates the company owns only a modest single-digit share of the nearly $9B U.S. cosmetics market, making its market opportunity attractive.

• Citigroup initiated Hess Corp (NYSE:HES) with a Hold rating and $133 target.
  
• NetSuite (NYSE:N) was started with a Sell rating and $14 target at Piper.
  
• Morgan Keegan initiated Berry Petroleum (NYSE:BRY) with an Outperform rating.