MOST NOTEWORTHY: Priceline.com, Monster and Internap were today's noteworthy downgrades:

• Susquehanna downgraded Priceline.com (NASDAQ: PCLN) to Neutral from Positive as they believe upside may be difficult given the macro environment, competition, and currency headwinds.
  
• JP Morgan lowered Monster (NASDAQ: MNST) to Neutral from Overweight following the company's expectations for higher 1Q08 operating expenses.
  
• Internap (NASDAQ: INAP) was downgraded by Merriman to Neutral from Buy as they believe upside will be limited until the company can complete its integration of the VitalStream CDN acquisition.

OTHER DOWNGRADES:

• JP Morgan cut Sara Lee (NYSE: SLE) and Kraft Foods (NYSE: KFT) to Neutral from Overweight.
  
• Volkswagen (OTC: VLKAY) was downgraded at WestLB to Add from Buy.
  
• Merrill downgraded Getty Realty (NYSE: GTY) to Sell from Neutral.

Hat-tip to PaidContent.org, a good site about the media business, which reported on Friday about Jupitermedia (NASDAQ: JUPM) purchasing Flying Hands Music, an online library of royalty-free music. Jupitermedia CEO Alan Meckler posted on his blog that this "was part of the company's strategy to expand, what it believes, is the world's largest collection of royalty-free music."

JUPM will be combining Flying Hands with its existing site, RoyaltyFreeMusic.com. It appears Jupiter has larger plans to bulk up its music offering. As announced on Meckler's blog, JUPM has plans to launch a new way for organizations to buy royalty-free background music for websites and other purposes in late February.

It's a good thing Jupiter is looking for expansion. Its stock is down 50% for 2007 and its larger competitor, Getty Images (NYSE: GYI) is down over 30%. Both companies have been plagued by what Citibank analyst Matthew Troy called "investor concern about structural shifts in the stock imaging landscape, driven by rapid growth in alternative channels and forms of lower yielding image licensing" in a research piece in November.

In other words, what was once a lucrative business is being eaten away by smaller sites with aggressive pricing and licensing requirements that just aren't what Jupitermedia was accustomed to seeing. To address this issue, JUPM has changed its focus to expand into media with acquisitions like Flying Hands.

What investors who have followed the story for some time are witnessing is that the Jupitermedia investment thesis has changed. Instead of Jupiter spinning off some of these web properties, Jupitermedia is now actually looking to acquire new businesses to amalgamate to their media business.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds no position in stocks mentioned.

MOST NOTEWORTHY: EDO Corp, General Motors, Cameron, Getty Images and Micrus Endovascular were today's noteworthy downgrades:

• EDO Corporation (NYSE: EDO) was downgraded to Neutral from Outperform at Credit Suisse following the acquisition by ITT Corporation (NYSE: ITT). Shares were also downgraded to Market Weight from Overweight at Thomas Weisel and to Hold from Buy at B&T Capital.
  
• Goldman downgraded shares of General Motors Corporation (NYSE: GM) to Neutral from Buy to reflect risk to the company's international and the slowing U.S. economy. Further, Goldman believes expectations for a deal over healthcare costs with unions are now priced into the stock.
  
• Wachovia downgraded Cameron International (NYSE: CAM) to Market Perform from Outperform on valuation.
  
• Kaufman Bros. downgraded shares of Getty Images Inc (NYSE: GYI) to Sell from Hold to reflect reduced expectations following the company's announced price reductions.
  
• CIBC downgraded shares of Micrus Endovascular Corporation (NASDAQ: MEND) to Sector Performer from Outperformer following the company's lowered guidance..

OTHER DOWNGRADES:

• BB&T downgraded Champion Enterprises (NYSE: CHB) and Palm Harbor Homes (NASDAQ: PHHM) to Hold from Buy.
  
• Stifel downgraded HCP Inc (NYSE: HCP) and Medical Properties Trust Inc (NYSE: MPW) to Hold from Buy.
  
• Goldman downgraded E-Trade Financial Corporation (NASDAQ: ETFC) to Neutral from Buy.
  
• Kellwood Company (NYSE: KWD) was downgraded to Neutral from Buy at Broadpoint.

MOST NOTEWORTHY: Comcast (CMCSA), Time Warner Cable (TWC), CNet Networks (CNET), Coviden (COV) and I.D. Systems (IDSY) were today's noteworthy initiations:

• Banc of America resumed coverage of Comcast (NADAQ: CMCSA) and Time Warner Cable (NYSE: TWC) with Buy ratings and $32 and $43 targets, respectively.

• Stanford started CNet (NASDAQ: CNET) with a Buy rating and $10 target, as the company is well positioned to benefit from its developing web properties.

• Bear Stearns expects shares of Covidien (NYSE: COV) to move up, starting shares with an Outperform rating, as the management transforms the company from a cash flow focused conglomerate division into a faster-growing, nimble competitor.

• Merriman said I.D. Systems (NASDAQ: IDSY) is uniquely positioned in the wireless asset tracking market given its focus on industrial machinery and material handling equipment, starting shares with a Buy rating...

OTHER INITIATIONS:

• Comverse (OTC: CMVT) was initiated with a Neutral rating at Merriman.

• Lehman started Getty Images (NYSE: GYI) with a Equal Weight rating and ShoreTel (NASDAQ: SHOR) with an Overweight rating.

• Jefferies initiated Harmonic (NYSE: HLIT) with a Buy rating.

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

MOST NOTEWORTHY: Getty Images (GYI), Jackson Hewitt (JTX), Electronic Data (EDS), RC2 Corp (RCRC) and Chipotle Mexican Grill (CMG) were today's noteworthy downgrades:

• Deutsche Bank cut Getty Images (NYSE: GYI) to Sell from Hold citing deterioration in its core business. Gabelli downgraded Getty Images to Hold from Buy after the company lowered guidance to reflect the changing industry dynamics.

• Goldman cut Jackson Hewitt (NYSE: JTX) to Sell from Neutral citing near-term risks that include the renegotiation of the HSBC (HBC)/RAL contract, the DoJ/IRS investigation, and decreasing performance in tax.

• Jefferies downgraded Electronic Data Systems (NYSE: EDS) to Hold from Buy to reflect the company's slowing cash flow improvement.

• Wedbush downgraded RC2 Corp (NASDAQ: RCRC) to Buy from Strong Buy on the lower sales forecast for 2007. Soleil cut shares to Hold from Gradually Accumulate to reflect uncertainty over the Thomas recall and increased competition.

• Chipotle Mexican Grill (NYSE: CMG) was downgraded to Market Perform from Outperform based on valuation...

OTHER DOWNGRADES:

• Lazard downgraded Kyphon (NASDAQ: KYPH) to Hold from Buy.

• SMH Capital cut Aventine Renewable Energy (NYSE: AVR) to Sell from Neutral.

• Credit Suisse downgraded AutoDesk (NASDAQ: ADSK) to Neutral from Buy.

• UBS cut SABMiller (OTC SBMRY) to Reduce from Neutral.

• CIBC downgraded Marvell Tech (NASDAQ: MRVL) to Sector Performer from Outperformer.

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

MOST NOTEWORTHY: Komag Incorporated (NASDAQ: KOMG), commercial mortgage REITs, Getty Images Inc (NYSE: GYI) and Rural/Metro Corporation (NASDAQ: RURL) were today's noteworthy downgrades:

• Komag was downgraded to Neutral from Buy at Craig-Hallum, to Market Perform from Outperform at Piper Jaffray, to Hold from Buy at Deutsche Bank and to Neutral from Outperform at Robert W Baird & Co following the announcement it would be acquired by Western Digital Corporation (NYSE: WDC).
  
• Morgan Stanley downgraded Commercial Mortgage REITs to Underweight from Neutral. Specifically, the firm downgraded shares of Capital Trust, Inc (NYSE: CT) to Equal Weight from Underweight and Gramercy Capital Corp (NYSE: GKK) to Underweight from Equal Weight, citing increased credit spreads and subordination levels.
  
• Getty Images was downgraded to Sell from Hold at Matrix as the firm believes margins are declining and sees downside to their $40/share intrinsic value calculation.
  
• Rural/Metro was downgraded by Ferris, Baker Watts to Neutral from Buy on valuation.

OTHER DOWNGRADES:

• PMI Group Inc (NYSE: PMI) was downgraded to Neutral from Buy at UBS.
  
• Deutsche Bank downgraded Palm, Inc (NASDAQ: PALM) to Sell from Hold.
  
• BMO Capital downgraded shares of Carrizo Oil & Gas Incorporated (NASDAQ: CRZO) to Market Perform from Outperform.
  
• Morgan Stanley downgraded shares of Cemex (NYSE: CX) to Equal Weight from Overweight.
  
• Barnes & Noble Inc (NYSE: BKS) was downgraded to Hold from Buy at Matrix.

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

MOST NOTEWORTHY: XM Satellite Radio (XMSR) and Cisco Systems (CSCO) topped today's list of notable downgrades.

• XM Satellite Radio Holdings 'A' (NASDAQ: XMSR) was downgraded by Bank of America to Neutral from Buy, with a $17 target, as they see limited upside potential and significant downside potential if the company doesn't merge with Sirius Satellite Radio (NASDAQ: SIRI).

• Cisco Systems (NASDAQ: CSCO) was downgraded at Prudential and Bank of America to Neutral, citing valuation for the move.

OTHER DOWNGRADES:

• Cablevision Systems 'A' (NYSE: CVC) was downgraded to Neutral from Buy at Bank of America as they believe the Dolan family's $30/share bid is probably their best and final offer.

• Getty Images (NYSE: GYI) was downgraded to Sell from Hold at Kaufman Brothers. They cited the changing stock imaging market, lowered expectations for 2007 and the options review overhang for the downgrade.

• UIL Holdings (NYSE: UIL) was downgraded to Underweight from Hold at BB&T, citing valuation and lowered estimates.

• RBC Capital Markets downgraded Abitibi Consolidated (NYSE: ABY) to Underperform from Sector Performer.

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