The Summer Olympics are only days away and what the Chinese had hoped would be their coming out party to celebrate all that is good, may instead become quite the opposite.

The air pollution in Beijing is so bad that even reducing automobile traffic by 50% has not helped much. China is now considering a 90% reduction according to news reports. Athletes are staying in other countries until the games begin so that they may train somewhere they can breathe. There are also reports that many athletes involved in stamina events will be forced to wear masks to protect themselves from the particulates in the air.

Now Reuters is reporting that "Some International Olympic Committee officials cut a deal to let China block sensitive websites despite promises of unrestricted access, a senior IOC official admitted on Wednesday."

So the world media will not be able to do their jobs in a manner they are accustomed to. But who are we actually referring to? Western media, of course, because half the world still limits access to information to some degree.

MOST NOTEWORTHY: Vale, Allos Therapeutics and Torchmark were today's noteworthy initiations:

• Lehman believes Vale (NYSE:RIO) is well-positioned to benefit from rising steel demand in emerging economies. The firm started shares with an Overweight rating and $45 target.
  
• Citigroup initiated Allos Therapeutics (NASDAQ:ALTH) with a Buy rating and $11 target and believes the company's lead drug PDX is likely to be the first FDA approved agent for peripheral T cell lymphoma.
  
• Friedman Billings expects Torchmark's (NYSE:TMK) sales to get back on track given increased recruiting, ongoing management initiatives, and the potential demise of Medicare Advantage. Shares were assumed with an Outperform rating and $72 target.

OTHER INITIATIONS:

• Baird initiated Navigant Consulting (NYSE:NCI) with an Outperform rating and $24 target.
  
• KeyBanc assumed Ingersoll-Rand (NYSE:IR) with a Buy rating and $49 target.
  
• Mindray Medical (NYSE:MR) and China Medical (NASDAQ:CMED) were initiated with Overweight ratings and targets of $50 and $54, respectively, at Morgan Stanley.

At best it was a week that was difficult; at worst it was a very concerning sign about what is to come. We have finally seen a significant drop in the overall sentiment due to extraordinarily high oil prices mixed with an unemployment level at 5.5%. The mixture of these and other troubling economic projections has finally come to cause investors to pause and realize that this is no place to be accepting risk beyond what is absolutely necessary.

This week will show a significant amount of reservation by investors not accepting of any shortfalls on earnings or even outlooks that are not significantly rosy. The current picture and the economic outlook was the focus of The Disciplined Investor Podcast this week, with help from money manager and economist, Michael "Mish" Sheldock.

Monday, June 9

Shuffle Master Inc. (NASDAQ: SHFL) will be reporting earnings that are expected to be $.07 per share. This has continued to be a difficult market for them even as casino construction has been rising around the world and the use of many of the products of this company are beneficial to the net profits of their customers. The stock has suffered dramatically over the past 12 months and, unless there is a product shift or new technology announced, there should be no reason that we see a catalyst for growth. Look for revenues of $45.55 million.

Ashworth Inc. (NASDAQ: ASHW) is a high-brow retailer that is expected to show a significant turn toward the negative this quarter. First Call estimates are looking for a negative $.06 per share while a year ago they were earning $.03 per share. Once again, there doesn't seem to be any reason why this company should see a beneficial upside unless investors are willing to short cover at this point. Even if that is the case, that will probably end up being temporary anyway.

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.

"Beijing-based biotech firm China Medical Technologies (NASDAQ: CMED) offers a unique product in a booming area -- non-invasive medical devices. CMED sells the High-Intensity Focused Ultrasound (HIFU) therapy system," says Mark Skousen, editor of Forecasts & Strategies and author of the just-released best seller, Investing in One Lesson.

"This system uses an ultrasound-guided ablation technique that is used for the non-invasive treatment of liver, breast, and kidney tumors; solid tumors in the pelvic cavity or bone; and tumors in the four limbs or superficial tissues. The HIFU system has been wildly successful in China, and now is expanding elsewhere.

"Countries such as Japan and Korea have approved its high-intensity focused ultrasound (HIFU) tumor therapy systems for the treatment of liver, pancreatic, and uterine cancer.

"China Medical is really taking off with rising earnings growth projected to occur in 2008, 2009 and 2010, amid further acceptance of the HIFU technology worldwide. Acceptance of that technology will drive international revenues, starting in Korea, Europe, Japan, and the United States.

The market has turned since my last video update -- with the Fed's recent interest rate cut, now is the time to embrace your inner bull! I discuss buying strategies in this edition of StockWatch: Between the Bells.

Three stocks you should look into:

• First Solar Inc. (NASDAQ: FSLR), a Phoenix manufacturer of silicon-free solar-power modules. FSLR is significantly undervalued, by as much as $40 if you believe Bank of America.
• China Medical Technologies (NASDAQ: CMED), which develops cancer treatments in Beijing. CMED is expanding its operations into the rest of Asia, as well as into Russia and Europe.
• After stalling a bit last month, Google (NASDAQ: GOOG) is pushing higher again, bound for $600.
  

Stay away from home builders like Hovnanian (NYSE: HOV) and Beazer Homes (NYSE: BZH) -- the ongoing mortgage meltdown is not over, and the housing market has yet to bottom out. Until then, also avoid home furnishings retailers, like Ethan Allen (NYSE: ETH).

Lastly, check out Baidu (NASDAQ: BIDU), China's leading search engine -- currently trading at $275 and soon to hit $300. Don't think that Google is considering a Baidu buyout? Think again.

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