MOST NOTEWORTHY: Acergy, Casey's General and Corinthian Colleges were today's noteworthy downgrades:

• Citigroup downgraded shares of Acergy (NASDAQ: ACGY) to Sell from Hold as they see risk to the company's backlog and believes the recent share rally is not supported by business operations.
  
• Casey's General (NASDAQ: CASY) was downgraded at Friedman Billings to Underperform from Market Perform citing headwinds that include weak gas comps.
  
• Banc of America downgraded shares of Corinthian Colleges (NASDAQ: COCO) to Neutral from Buy as they believe the post-legislation lending overhang will limit further share upside until COCO can show its students can access federal funds with minimal disruption.

OTHER DOWNGRADES:

• Bernstein cut EMC Corp (NYSE: EMC) to Market Perform from Outperform.
  
• Baird lowered Woodward Governor (NASDAQ: WGOV) to Neutral from Outperform.
  
• Merrill downgraded Sealed Air (NYSE: SEE) and Bemis (BMS) to Sell from Neutral.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite aggressive recommendation for 2008 is Acergy (NASDAQ: ACGY)," says Elliott Gue, editor of The Energy Strategist.

"Acergy provides engineering and construction services for offshore oil and gas developments with a particular focus on deepwater projects. Acergy's most important business is what's known as SURF -- subsea umbilicals, risers and flowlines.

"SURF relates only to wells that are developed with subsea completions, meaning that the well is installed directly on the seafloor. When wells are installed on the seafloor, operators need ways to control the well remotely.

"This is done via electrical and hydraulic systems; umbilicals are nothing more than electrical and hydraulic cables that connect a surface-based platform to subsea wells. The term riser refers to a flexible steel pipe that connects underwater pipelines or wells to surface-based floating production platforms. Risers actually carry oil and/or gas from subsea developments to the surface.

"Finally, flowlines are smaller diameter pipes used to transport oil and gas underwater. Obviously, all subsea developments require the installation of SURF. Acergy's heavy concentration in this area gives it extraordinary leverage to deepwater.

In the deep sea oil and gas game, contractors offering "seabed-to-surface" piping and rig services are not altogether common. One of the better known outfits is headquartered in the Surrey town of Sunbury-on-Thames.

Acergy SA (NASDAQ: ACGY) provides subsurface engineering and construction contracting services for the offshore oil and gas industry worldwide. The firm operates a fleet of eight ships, four barges, and 36 remotely operated vessels to lay pipelines and provide construction, inspection, and maintenance services on offshore rigs. Acergy serves firms working in the offshore areas of nineteen countries in Asia, Europe, the Middle East, North and South America, and West Africa.

The firm pleased investors last week, when it announced solid Q2 results and issued upside guidance for FY07 revenues. The CEO said, "During the quarter, we effectively managed high levels of activity, complex operations and a stretched logistics and supply chain, while continuing to consolidate our growth and recruit new staff." The stock popped into a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Analysts see a 36% growth rate, through the next year. The ACGY PEG (0.75), Price to Sales ratio (2.14), Return on Investment (25.89%) and Return on Equity (37.50%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 12 percent of the outstanding shares. Over the past twelve months, the stock has traded between $14.79 and $27.77. A stop-loss of $23.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.