MOST NOTEWORTHY: Some of today's notable downgrades were National City Corp (NCC), Aeroflex Inc (ARXX) and Compass Minerals International (CMP):

• Morgan Stanley cut National City Corp (NYSE: NCC) to Underweight from Equal-Weight with and $35 target to reflect increased losses on the company's remaining subprime loans and slower growth in the Midwest.

• AG Edwards downgraded Aeroflex Inc (NASDAQ: ARXX) to Sell from Buy to reflect the company's acquisition agreement.

• Matrix USA cut Compass Minerals Int'l (NYSE: CMP) to Strong Sell from Buy to reflect weak demand for deicing products.

OTHER DOWNGRADES:

• CIBC downgraded Pathmark Stores Inc (NASDAQ: PTMK) to Sector Perform from Outperformer based on the Great Atlantic & Pacific Tea Co (NYSE: GAP) acquisition.

• UBS cut Apria Healthcare Group Inc (NYSE: AHG) to Reduce from Neutral on valuation.

• Goldman Sachs downgraded Progressive Gaming International Corp (NASDAQ: PGIC) and Strategic Hotels & Resorts Inc (NYSE: BEE) to Sell from Neutral.

• Brean Murray cut Youbet.com (NASDAQ: UBET) to Hold from Buy based on increased competition concerns.

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

Ronald Burkle was recently the subject of a big profile in Forbes.com. The publication does like to write-up billionaires. Besides, Burkle has big-time friends, such as former President Bill Clinton, and he's a big believer in the investment principles of Warren Buffett.

Burkle built his fortune by using leverage buyouts, starting in the grocery sector. One of his most famous plays was for Pathmark Stores (NASDAQ:PTMK).

Now it looks like he wants to start a "corporate governance fund." That's a nice sounding name for a more aggressive approach to investing – that is, taking sizeable positions in a stock and agitating for change (i.e., profits). He says he was inspired by the power he saw Kirk Kerkorian had with GM, despite owning only 10% of the company.

Given Burkle's track record, he should have little trouble finding backers. And there should be no shortage of under-performing companies to target.

Going into 2007, expect this corporate drama to continue.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.