MOST NOTEWORTHY: Electronics for Imaging, Fundtech and VIA Pharmaceuticals were today's noteworthy initiations:

• Banc of America initiated Electronics for Imaging (NASDAQ: EFII) with a Buy rating and $26.50 target, as it sees leverage potential in 2008 from cost reductions and revenue mix and believes stronger controller revenue mix and ink from inkjets could help gross margin in 2H08.
  
• JMP Securities expects Fundtech (NASDAQ: FNDT) to benefit from an upgrade cycle among large banks to improve their payment systems, starting shares off with a Market Outperform rating and $19 target.
  
• Rodman & Renshaw resumed coverage of VIA Pharmaceuticals (NASDAQ: VIAP) with an Outperform rating and $4 target. The firm expects VIAP's VIA-2291, a treatment for Antherosclerosis, Ph II data expected in mid-2008 to drive shares.

OTHER INITIATIONS:

• Oppenheimer initiated Ardea Biosciences (NASDAQ: RDEA) with a Buy rating and $15 target.
  
• SAP AG (NASDAQ: SAP) was initiated with an Equal Weight rating at Lehman.
  
• CIBC resumed coverage of Limelight Networks (NASDAQ: LLNW) with a Sector Outperformer rating.

Fiserv Inc. (NYSE: FISV) -- an operator of bank ATM machines -- bought CheckFree Corp. (NASDAQ: CKFR) today, according to Bloomberg News. Why did this happen and who could be next?

Fiserv's $4.4 billion acquisition represents a big bet on the growth in the Internet banking industry. And Internet banking is a growing business for the simple reason that it's cheaper and quicker to do banking over the Web than to build and operate a network of branches. Earlier in the year, Fiserv was outbid by Fidelity National Information Services Inc. (NYSE: FIS) when Fiserv tried to buy rival EFunds Corp. for $1.5 billion.

The combination will allow the company to eliminate about $100 million a year in expenses. The sale, which the companies expect to close by the end of the year, will add more than $125 million to revenue. Fiserv expects the purchase to add to earnings per share in 2008

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Jon Markman, editor of Strategic Advantage, chose banking software company FundTech Ltd. (NASDAQ: FNDT), which rose 41% as of June 1, 2007. The advisor has just sold the stock from his model portfolio.

For his new favorite idea for the balance of 2007, the advisor looks to Hercules Offshore Inc. (NASDAQ: HERO). He explains, "Energy companies' shares might seem high to you now, but you ain't seen nothin' yet. When investors collectively decide that the new 'band' for oil prices is $50 to $65 rather than $35 to $50, then virtually all energy stocks are in for a major upward move.

"In this scenario, every subsector of the energy industry will move higher: Oil and gas drillers, services providers, explorers, refiners, pipeline owners, and the major integrators. We are just in the third inning of the game now, and it should continue to surprise people.

"All this is good news for the energy companies, but not such great news for the average consumer. We know how gasoline prices are breaking budgets.

"So in order to put some of the cash you're shelling out at the pump each week back into your pockets, I've been suggesting a couple of other energy companies that are set to profit from higher oil and natural gas prices as well as drilling rates.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Fundtech Ltd (NASDAQ: FNDT), an information technology firm focused on banks, is the favorite idea for 2007 for conservative investors from Jon Markman. The editor of Strategic Advantage says, "Based in Israel, the small cap company is run primarily out of offices in New Jersey, and is a great play on the globalization of business in general.

"Despite its small size, with a market cap of just $180 million, it sells its cash- and payment-management software and services to dozens of leading U.S. and European banks, and has deep and growing relationships with two of the very largest: Citicorp in New York and HSBC Holdings (HBA) in London.

"The European Central Bank has issued regulations demanding that banks in all European Union countries charge customers the same amount to move money internationally as domestically. Fundtech has a product that addresses these challenges.