MOST NOTEWORTHY: Select theater stocks, Equity Inns (ENN), Talbots (TLB) and Starbucks (SBUX) filled today's noteworthy downgrade segment:

• Banc of America said summer blockbusters have fallen off faster than they expected and there are fewer mid-tier films to support growth:

• The firm downgraded Carmike Cinemas (NASDAQ: CKEC), Cinemark Holdings (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) to Neutral from Buy.

• Equity Inns (NYSE: ENN) was cut to Sell from Hold at AG Edwards after the Whitehall acquisition. JMP Securities and Friedman Billings cut shares to Market Perform from Outperform and KeyBanc downgraded Equity Inns to Hold from Buy.

• Matrix USA downgraded Talbots (NYSE: TLB) to Sell from Hold based on the eroding return of capital because of the company using capital to acquire and open new stores. Friedman Billings downgraded shares of

• Starbucks (NASDAQ: SBUX) to Market Perform from Outperform and removed the company from their FBR Top Picks list on expectations that 2H07 same-store sales will no longer improve, removing a catalyst...

OTHER DOWNGRADES:

• Fairchild Semiconductor (NYSE: FCS) was cut to Market Perform from Outperform at Piper.

• Abercrombie & Fitch (NYSE: ANF) was downgraded to Equal Weight from Overweight at Lehman.

• UBS downgraded Big 5 Sporting Goods Corp (NASDAQ: BGFV) to Neutral from Buy.

• Banc of America downgraded Cognos (NASDAQ: COGN) to Neutral from Buy.

• Roth downgraded Fuel Tech Inc (NASDAQ: FTEK) to Hold from Buy.

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

Fairchild Semiconductor International Inc (NYSE: FCS), Power One Inc (NASDAQ: PWER) and Seagate Technology (NYSE: STX) all reported slightly weaker results and warned the June quarter will remain weak. All three are very good barometers of tech hardware demand.

FCS was light with revenue declines and guided to weaker results for the June quarter. Power One, the power supply company, revenues also came in lite with revenue of $124 million versus $130 million consensus estimate, blaming a weak North American market for the miss.

Seagate, the disk drive company, also reported weak results. The hard-drive manufacturer's CEO said notebook pricing is very aggressive -- not a good sign. The notebook business has been the real growth driver for PC manufacturers. Specifically, the weaker demand led to a price war in 400-750 GB drives, with prices eroding twice as much as it had thought.

With the first quarter coming in weak and second quarter guidance pointing to continued weakness, unless the Fed starts dropping short-term rates substantially, there is little reason to get into these stocks or any of the tech food chain stocks on the hardware side.

Outside of chipping away at Intel Corporation (NASDAQ: INTC) on price or stock market weakness, stay on the sidelines until summer.