Positive earnings reports have pushed the major stock indexes to levels not seen in more than two years -- and today's market is continuing along the same path. Recent political unrest in Bahrain, Yemen, and Libya has not had an impact yet on equities, but there could be added political risk to the supply of oil from the Middle East. Oil prices are up above $87/barrel again, and gold is nearing $1,400/ounce again. Currency markets are bullish on the euro and the British pound, with the dollar giving up some power on expectations of interest rate hikes in both the UK and the Eurozone.

Here are the numbers for late afternoon trading today:

Dow Jones 12,391.25 +73.11 (0.59%)
S&P 500 1,343.01 +2.58 (0.19%)
Nasdaq 2,833.95 +2.37 (0.08%)

• DJIA 12,654.36 (+391.47; +3.19%)
• S&P 500 1,370.16 (+47.46; +3.59%)
• NASDAQ 2,362.75 (+83.65; +3.67%)
• 10YR-TBond 3.545% (+0.113)
• 52-week lows, there are always some

While sexy companies like Garmin Ltd. (NASDAQ: GRMN) and TomTom (AMS: TOM2) sell technology that makes finding your location on a map as easy as pushing a button, the foundation of the business is in the maps themselves. In 2006, over half of all internet map searches referenced the products of just one company, TeleAtlas (AMS: TA).

Now, Amsterdam-based TomTom has announced plans for a friendly buyout of TeleAtlas for just under $30 per share, a 32% premium over market value. This is quite a bold vote of confidence by TomTom, since TeleAtlas consistently loses money, including an expected $7 million this year. The total cost of the purchase will be in excess of $2.5 billion.

TeleAtlas is a provider of mapping information to TomTom, MapQuest, and many other GPS systems, and is used in over 90% of U.S. 911 calls. The U.S. Dept. of Transportation uses TeleAtlas data, as do governments in many of the 64 nations for which they have compiled map data. TomTom is the world leader in portable GPS devices, with 52% of the European market and 25% of the U.S.'s.

The acquisition will allow TomTom to vertically integrate its product offerings and give it access to a much more diverse book of business. I expect the company to leverage their technology to offer seamless hardware/data products to the many customers already enjoying TeleAtlas's mapping services. Given the price paid, however, the sales pace had better be brisk, or TomTom will need more than a GPS unit to find its bottom line.

MOST NOTEWORTHY:

• Cavium Networks was initiated with a Strong Buy rating and $25 target at JMP Securities. The firm's checks indicate significant momentum for Cavium's products and cites good visibility. Cavium was also initiated with a Market Weight rating at Thomas Weisel, which finds shares fairly-valued at current levels, with a Buy rating and $25 target at Needham, with an Equal Weight rating and $22 target at Lehman Brothers, with an Equal Weight rating at Morgan Stanley and with a Buy rating and $26 target at Deutsche Bank, which expects over 50% revenue growth from 2006-2009 due to the growth in the company's network processor product line.
• TravelCenters of America was initiated with a Buy rating and $54 target at Ferris Baker Watts and with a Buy rating and $70 target at BWS Financial, as the firm is positive on TA's earnings power and valuation.
• Citigroup initiated shares of MetroPCS with a Buy rating and $40 target. The firm believes the company's coupled with deepening penetration in its core markets should produce revenue and FCF growth that exceeds the maturing industry average.

• IntercontinentalExchange Inc (NYSE: ICE) was initiated with an Outperform rating at Credit Suisse.
• Janco initiated shares of Foundry Networks Inc (NASDAQ: FDRY) with a Buy rating and $19.50 target, as the firm believes the company's new products put it in a position to gain market share.
• CIBC World Markets initiated shares of Accuray Incorporated (NASDAQ: ARAY) with a Sector Underperformer rating and $19 target.