Genzyne Corp.'s (NASDAQ: GENZ) stock has meandered since the June 19, 2009, Buy recommendation at $55.02, and it appears institutional investors have adopted a wait-and-see stance regarding the company.

Even so, I'm reiterating my Buy rating for GENZ. Here's why:

Analyst upgrades:

• Citigroup upgraded Cooper Industries (NYSE: CBE) to Buy from Hold on valuation as it believes commercial construction concerns are well known. The firm raised its target on shares to $40 from $37, and coupled the upgrade with a downgrade of Rockwell Automation (NYSE: ROK) to Sell from Hold.
• Credit Suisse upgraded BJ Services (NYSE: BJS) to Neutral from Underperform following its acquisition by Baker Hughes (NYSE: BHI). The firm raised its target to $17.
• Credit Suisse also upgraded Amkor Technology (NASDAQ: AMKR) to Outperform from Neutral and raised its target to $8 from $7. The firm expects Amkor to benefit from near-term strength in the supply chain and the mix shift towards higher value packaging.
• Textron (NYSE: TXT) was upgraded to Conviction Buy from Neutral at Goldman.
• Siemens (NYSE: SI) was upgraded to Neutral from Sell at UBS.
• Stanley Works (NYSE: SWK) was upgraded to Buy from Neutral at Janney Montgomery.

The U.S. Food and Drug Administration (FDA) has some questions for Genzyme Corp. (NASDAQ: GENZ) regarding trial data for its leukemia drug, Clolar. Because Genzyme didn't follow the FDA's recommendations in conducting its main study of Clolar, the regulatory agency is reluctant to make a decision on the basis of the trial results.

In 2007, FDA staff advised Genzyme to conduct a randomized study in which participants receiving Clolar would be compared against a set of patients not receiving the drug. However, the drug company's primary tests did not include a control group; instead, the treatment was tested only on elderly patients with acute myeloid leukemia (AML).

Pharmaceutical drugmaker Genzyme (NASDAQ: GENZ), based in Cambridge, Massachusetts, specializes in creating drugs for rare diseases. Despite the small market, the Orphan Drug Act gives the company tax credits and enhanced patent protection, virtually guaranteeing that its drugs become blockbusters, like it's Gaucher's disease drug Cerezyme.

Recently, the company has halted production of the drug after a virus was discovered in production equipment at its Allston plant. Since the company expects a shortage in the supply of the drug, Genzyme said it would ask some consumers to conserve their stocks of the drug by temporarily skipping or reducing doses. The missed doses will not cause significant health problems, Genzyme said.

A Buy has been issued in these circles for biotech company Genzyme Corp. (Nasdaq: GENZ). The Buy rating would have been generated earlier, but technical indicators and the stock's dip below the $50 price level necessitated the delay.

Further, a Genzyme conference call this week to discuss manufacturing problems at its Allston facility has addressed concerns enough such that it appears the FY2009 earnings picture will not be hurt. The First Call FY2009/FY2010 EPS estimates for GENZ are $3.28 to $4.54.

Genzyme (NASDAQ: GENZ - option chain) stock is down today after the company said it has stopped production at a plant in Massachusetts due to viral contamination in one of its bioreactors. The plant, which produces two of GENZ's leading drugs, Cerezyme and Fabrazyme, should reopen at the end of July. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GENZ.

This morning, GENZ opened at $51.42. So far today the stock has hit a low of $51.30 and a high of $52.95. As of 11:30, GENZ is trading at $52.80, down $2.82 (-5.1%). The chart for GENZ looks bullish and S&P gives GENZ a positive 5 STARS (out of 5) strong buy ranking.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Applied Materials Inc. (NASDAQ: AMAT) posted a Q1 loss and announced a workforce reduction.
• ArcelorMittal (NYSE: MT) swung to it's first ever quarterly loss due to lower demand and a big write-down.
• Buffalo Wild Wings Inc. (NASDAQ: BWLD) shares surged after it posted strong Q4 results.
• Chipotle Mexican Grill Inc. (NYSE: CMG) posted better-than-expected Q4 earnings as revenue surged.
• Genzyme Corp. (NASDAQ: GENZ) topped Q4 earnings estimates, sending shares higher.
• Global Traffic Network Inc. (NASDAQ: GNET) weaker-than-expected Q2 results led to a downgrade.
• Level 3 Communications Inc. (NASDAQ: LVLT) shares fell despite its upside surprise for Q4.
• Lions Gate Entertainment (NYSE: LGF) posted a bigger-than-expected Q3 loss despite revenue growth.

Genzyme (NASDAQ: GENZ - option chain) shares are headed higher today after the company reported a fourth-quarter profit this morning of $1.04 per share on revenue of $1.17 billion, beating analysts' projections of $1.02 per share on revenue of $1.18 billion. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GENZ.

GENZ opened this morning at $72.47. So far today the stock has hit a low of $71.23 and a high of $73.41. As of 11:40, GENZ is trading at $71.95, up 76 cents (1.1%). The chart for GENZ looks bullish and S&P gives GENZ a positive 5 STARS (out of 5) strong buy ranking.

Celgene (NASDAQ: CELG), a biopharmaceutical company, closed at $50.34. CELG is scheduled to announce Q4 EPS on January 29. CELG February and March option implied volatility of 49 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Genzyme (NASDAQ: GENZ) closed at $68.20. GENZ is expected to report Q4 EPS on February 11. Robert W Baird has an $87 price target on GENZ. GENZ February option implied volatility of 40 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Gilead Sciences (NASDAQ: GILD), a biopharmaceutical company, is scheduled to report Q4 EPS on January 27. GILD February option implied volatility of 46 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Looking for stocks that should benefit now that Senator Obama is officially President-Elect Obama? Many investors believe that liberals negatively impact stock markets in general and that the only companies to benefit from a liberal adminstration are those that stand to get tax breaks or incentives.

Personally, I don't believe that the market is going to go to hell in a handbasket just because Obama is now officially 'the man.' We have had some real rough times already and there are quite a few bargain stocks out there. An Obama victory looked more and more certain in the weeks approaching Election Day. There should not be a big negative reaction, because the markets will have already priced in the high likelihood of an Obama win. That being said, there should still be certain industries and stocks that are boosted more than others.

My pick for a strong industry under President Obama is the biotechnology sector, specifically those companies that work with stem cells. While not a major issue through the election cycle, Obama has generally favored the removal of federal stem cell restrictions, including research on embryonic stem cells. A few years ago, the Stem Cell Research Enhancement Act of 2005 was approved by both the House and Senate, but vetoed by President Bush. The House failed in its attempt to override the veto. Obama voted in favor of the measure in the Senate and it is not a stretch to think that in the next two years with a Democratically-controlled Congress that a similar measure would be brought up and passed without much opposition.

Osiris Therapeutics (NASDAQ: OSIR - option chain) is a leader in the stem cell industry, and currently uses cells harvested from adult bone marrow. OSIR has recently partnered with Genzyme (NASDAQ: GENZ- option chain) to sell two of its developing drugs internationally. OSIR retains the rights to these therapies in the US and in Canada. OSIR received $130M up front for these rights, but the agreement calls for more payments (up to $1.25B) depending on future sales.

MOST NOTEWORTHY: Staples, Evergreen Solar and Genzyme were today's noteworthy upgrades:

• Jefferies upgraded shares of Staples (NASDAQ: SPLS) to Buy from Hold following the company's raised bid for Corporate Express based on the increased chance the deal gets deal done and SPLS achieves meaningful EPS accretion.
  
• Jefferies also raised Evergreen Solar (NASDAQ: ESLR) to Buy from Hold on valuation, as they believe concerns regarding capital needs are now priced into the stock and that the company continues to take risk out of its growth story through execution.
  
• Bernstein upgraded Genzyme (NASDAQ: GENZ) to Outperform from Market Perform citing increased confidence in GENZ's product portfolio, geographic and therapeutic diversification, improved outlook, and valuation.

OTHER UPGRADES:

• Sun Microsystems (NASDAQ: JAVA) was raised to Outperform from Market Perform at Wachovia.
  
• BearingPoint (NYSE: BE) was upgraded at Goldman to Neutral from Sell.
  
• Lehman upgraded Nexen (NYSE: NXY) to Overweight from Equal Weight.

MOST NOTEWORTHY: The broadline retail sector, Coca-Cola Enterprises, PepsiCo, Pepsi Bottling and Discovery Holdings were today's noteworthy initiations:

• BMO Capital believes the broadline retail sector will be pressured until valuations reflect a potential recession in 2008, or the housing market begins to stabilize. The firm initiated the sector with an Underperform rating, and started shares of Wal-Mart (NYSE: WMT) and JC Penney (NYSE: JCP) with Outperform ratings and a $52 target and $68 target, Macy's (NYSE: M) with a Market Perform rating and $35 target, and Nordstrom (NYSE: JWN) with an Underperform rating and $38 target.
  
• Bear Stearns started shares of Coca-Cola Enterprises (NYSE: CCE), PepsiCo (NYSE: PEP) and Pepsi Bottling Group (NYSE: PBG) with Peer Perform ratings on valuation.
  
• Wachovia initiated Discovery Holding (NASDAQ: DISCA) with a Market Perform rating on valuation.

OTHER INITIATIONS:

• Genzyme (NASDAQ: GENZ) was initiated with a Sector Performer rating at CIBC.
  
• UBS resumed coverage of Capital Trust (NYSE: CT) and CapitalSource (NYSE: CSE) with Neutral ratings and targets of $35 and $18, respectively.

MAJOR PAPERS:

• Kohlberg Kravis Roberts & Co and Goldman Sachs Group (NYSE: GS) may not go through with their expected buyout of Harmon International Industries (NYSE: HAR), according to the Wall Street Journal, as a result of the credit crisis and lower results at Harmon.
• The Financial Times reported that Chinese PC maker Lenovo Group (OTC: LNVGY) is open to acquiring companies, but buying companies is not a top priority, according to Lenovo CEO Bill Amelio.

OTHER PAPERS:

• The Guardian reported that Google Inc (NASDAQ: GOOG) is considering a move into the U.K. wireless market after regulator Ofcom proposed taking back over a third of the mobile phone spectrum that Vodafone Group (NYSE: VOD) and O2 have been using for 22 years to auction it for new entrants.
• From BusinessWeek's "Inside Wall Street" column:
  
• How much higher can Apple Inc (NADSAQ: AAPL) go? Of the 27 analysts who track Apple, 23 still recommend buying it, 4 rate it a hold, while none advise selling it.
• A week after Boone Pickens disclosed a 9.9% stake in InterOil Corporation (NYSE: IOC), the stock gushed from $28 on Aug. 8 to $40.75 on Aug. 13, the day the oil-and-gas explorer disclosed it found evidence of oil in its Elk-2 well in Papua New Guinea.
  
• Bioenvision Inc (NASDAQ: BIVN), the small biotech that Genzyme Corporation (NASDAQ: GENZ) agreed to acquire in May at $5.60 a share, may not close on the deal unless Genzyme raises its offer.

MOST NOTEWORTHY: Winn-Dixie Stores (WINN), TIB Financial Corp (TIBB), Energy East Corp (EAS), Baidu.com, Inc (BIDU) and SINA Corp (SINA) were today's noteworthy upgrades:

• Friedman Billings upgraded shares of Winn-Dixie Stores (NASDAQ: WINN) to Outperform from Market Perform citing valuation, sustainable Q3 margins, and share gains from both Wal-Mart Stores (WMT) and Publix.

• Sandler raised TIB Financial Corp (NASDAQ: TIBB) off the ground, to Hold from Sell, citing valuation.

• Jefferies upgraded shares of Energy East (NYSE: EAS) to Hold from Sell after Iberdrola agreed to acquire the company.

• Pacific Crest upgraded both Baidu.com (NASDAQ: BIDU) and SINA Corp (NASDAQ: SINA) to Outperform from Sector Perform following their trip to Asia, citing China's strong online ad market. They believe Baidu.com is benefiting from its sales-force integration and SINA Corp's brand strength should lead to further market-share gains...

OTHER UPGRADES:

• Lehman upgraded Celgene Corp (NASDAQ: CELG) and Genzyme Corp (NASDAQ: GENZ) to Overweight from Equal Weight.

• Matrix USA upgraded Jo-Ann Stores (NYSE: JAS) to Sell from Strong Sell.

• Dolby Laboratories (NYSE: DLB) was upgraded to Overweight from Neutral at JP Morgan.

• Wachovia raised U-Store-It Trust (NYSE: YSI) to Market Perform from Underperform.

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

MOST NOTEWORTHY: Bioenvision (BIVN), Archstone-Smith Trust (ASN) and GlaxoSmithKline (GSK) were today's noteworthy downgrades:

• Rodman & Renshaw downgraded Bioenvision to Market Perform from Outperform, as the firm expects the majority of shareholders to vote in favor of Genzyme Corp.'s (NASDAQ: GENZ) acquisition, but does not believe the transaction price reflects the true value of the company.
• Bioenvision Inc. (NASDAQ: BIVN) was also downgraded at UBS to Neutral from Buy due to the acquisition.
• Archstone-Smith Trust (NYSE: ASN) was downgraded to Hold from Buy at Stifel Nicolaus, to Market Perform from Outperform at Wachovia and to Market Perform from Outperform at Friedman Billings following the acquisition by Tishman Speyer and Lehman Brothers Holdings Inc. (NYSE: LEH).
• GlaxoSmithKline (NYSE: GSK) was downgraded to Sell from Neutral at Merrill Lynch to reflect an unattractive risk/reward profile as they believe Avandia sales will be negatively impacted by the safety concerns raised in the New England Journal of Medicine.

OTHER DOWNGRADES:

• Clayton Holdings Inc. (NASDAQ: CLAY) was downgraded to Market Outperform from Strong Buy at JMP Securities, as the firm believes a 2H07 recovery in the subprime MBS market is becoming less visible.
• CDW Corp (NASDAQ: CDWC) was downgraded to Peer Perform from Outperform at Bear Stearns following the acquisition by Madison Dearborn Partners.

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