Baird upgraded Adtran (NASDAQ: ADTN) to Outperform from Neutral based on valuation, new product cycles, and confidence in 2H08 results.
Morgan Stanley upgraded shares of Repsol (NYSE: REP) to Overweight from Equal Weight as they believe the potential sale to Sacyr Vallehermoso SA could lead to a restructuring.
Stanford lifted National Oilwell Varco (NYSE: NOV) to Buy from Hold citing valuation. In addition, the firm, which set a target of $70, thinks most of the drop in commodity prices is now over.
Ryanair (NASDAQ: RYAAY) was raised to Hold from Sell at Societe Generale.
Ann Taylor (NYSE: ANN) was upgraded at Piper to Neutral from Sell.
Argus downgraded shares of Constellation Energy (NYSE: CEG) to Hold from Buy post-close given the volatility in the stock as they can no longer recommend CEG until concerns over its capital and liquidity are resolved. Shares were also downgraded to Hold from Buy at Citigroup.
Collins Stewart downgraded Lloyds TSB Group (NYSE: LYG) to Hold from Buy following the acquisition of HBOS (OTC: HBOOY) as they expect short-term weakness in the stock.
No matter what any CEO, analyst, "guru", "market expert", strategist, fund manager, trader or message board poster says (few show all their trades and investments like me, nor are they up 60% in 2008, see details here), never try to catch a falling knife. Before I list all the current ones, I really have to pound it into your heads that buying these things in hugely uncertain -- and possibly disastrous -- times like these is not only dangerous, it's just plain irresponsible.
Now, I don't want to hear those "I'm a long-term investor in blue-chip stocks" and "these are quality companies trading at discount prices"-type comments. While it's possible these stocks will bounce, the risk-reward ratio is downright awful here, just as its been for the past several months (as I've been warning in posts like this and this).
The financial media -- envious of the fat profits generated by such entertainment-based businesses as World Wrestling Entertainment Inc (NYSE: WWE), Las Vegas Sands Corp. (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) -- has brainwashed you into believing that in order to make money in the stock market, you must keep up to date with every single headline and development in the business world. Hogwash!
I have no problem with financial entertainment, but I do take issue with all these media outlets making their content out to be useful to investors. I've repeatedly echoed this theme in articles like this and I don't expect this industry to change anytime soon, but I am going to keep preaching so you will better understand how low your chances of success are if you bet on the most popular -- hence the most efficient -- topics du jour. Unless you are George Soros or Warren Buffett or a few other wealthy elderly men, there is always somebody better informed and more intelligent than you are. Hence, you are always at a disadvantage.
MOST NOTEWORTHY: Home Depot, Seaspan and Pharmasset were today's noteworthy initiations:
Morgan Keegan initiated Home Depot (NYSE: HD) with a Market Perform rating, citing valuation and the possibility that housing continues to deteriorate in 2008.
Oppenheimer believes Seaspan (NASDAQ: SSW) is well positioned within the containership sector given its modern fleet profile and entrenched liner relationships. The firm assumed coverage with an Outperform rating and $32 target.
JMP Securities initiated shares of Pharmasset (NASDAQ: VRUS) with a Market Outperform rating and $35 target and believes R7128 is evolving to be the premier product in hepatitis C. The firm expects a phase 2b trial evaluating R7128 in combination with standard of care to be initiated in 2H08 by partner Roche (OTC: RHHBY).
OTHER INITIATIONS:
UBS started BioMarin (NASDAQ: BMRN) with a Neutral rating and $38 target.
First Analysis initiated Ecolab (NYSE: ECL) with an Equal Weight rating.
Illumina (NASDAQ: ILMN) was initiated with an Overweight rating at JP Morgan.
Tim has three daring tips for you. Digital content storage provider Isilon Systems (NASDAQ: ISLN) is sitting at an all-time low, more than 70% off its high at the start of the year, and looks priced to buy. Genetics biotech Illumina Inc. (NASDAQ: ILMN) is currently trading around $52; Tim sees ILMN climbing to $60. Sound a little too risky? Tim suggests checking out The Bruce Fund (BRUFX), a mutual fund focusing on domestic common stock, convertible bonds and zero-coupon government bonds.
Considering a short-selling strategy? Tim calls out China Precision Steel (NASDAQ: CPSL), which has jumped more than three-fold in little more than a week and looks set to slide.
Jamba Juice (NASDAQ: JMBA), meanwhile, is giving Tim fits -- revenues are up while same-store sales are slipping. He advises to stay away from JMBA.
Enjoy the clip, and let us know which of your favorite stock gurus you'd like to hear from in the next StockWatch: Between the Bells!
Innovative technologies now allow such detailed analysis of genetic variation and function that firms can work on the development of "personalized medicine". There is an outfit in San Diego that is in the front wave of firms designing the machines that make such research possible.
Illumina (NASDAQ: ILMN) is engaged in the development and marketing of tools for the analysis of genes. The firm sells systems that determine variation in genetic sequences, analyze which genes are active in a particular cell or group of cells, profile changes in genetic sequence function, and determine which proteins are present in cells and how they interact. Customers include biotechnology companies, research centers, and academic institutions.
The firm pleased investors last week, when it reported Q2 EPS of 16 cents and revenues of $84.5 million. Analysts had been expecting 13 cents and $77.7 million. Management also guided Q3 revenues to $88-92 million ($82.32M consensus) and FY07 revenues to $335-345 million ($323.05M consensus).
MOST NOTEWORTHY: Steven Madden, Ltd (SHOO), Expedia, Inc (EXPE), Oracle Corp (ORCL) and Tim Horton's Inc (THI) round up today's noteworthy upgrade list:
Steve Madden, Ltd (NASDAQ: SHOO) was upgraded to Buy from Neutral at Nollenberger as they believe Madden is well positioned going into the back half of 2007 with clean inventories and focused products.
Matrix believes increasing marketing efforts and European growth are contributing to significant improvement in fundamental trends for Expedia Inc (NASDAQ: EXPE), and upgraded shares to Hold from Sell.
Pacific Crest upgraded shares of Oracle Corp (NASDAQ: ORCL) to Outperform from Sector Perform to reflect improved channel checks and the probability of continued success.
CIBC upgraded Tim Horton's (NYSE: THI) to Sector Outperformer from Sector Performer based on valuation...
OTHER UPGRADES:
Banc of America upgraded Intersil Corp (NASDAQ: ISIL) to Buy from Neutral.
Bear Stearns upgraded Illumina, Inc (NASDAQ: ILMN) to Outperform from Peer Perform.
Buckingham raised Kohl's Corp (NYSE: KSS) to Strong Buy from Neutral.
MOST NOTEWORTHY: Blockbuster Inc (BBI), Molson Coors Brewing Co (TAP), Illumina, Inc (ILMN), and ARM Holdings plc (ARMHY) were today's more noteworthy upgrades:
Citigroup upgraded Blockbuster Inc (NYSE: BBI) to Buy from Hold based on valuation, improving box office visibility and their belief that the lower-priced online-only rental product will help improve costs.
Molson Coors Brewing (NYSE: TAP) was upgraded to Buy from Neutral at UBS based on valuation, volume strength and pricing.
Matrix believes strong demand for genetic analysis equipment is boosting profits for Illumina (NASDAQ: ILMN), upgrading shares to Strong Buy from Sell; Matrix sees upside to their Intrinsic Value Calculation of $50/share.
ARM Holdings (NASDAQ: ARMHY) was upgraded to Overweight from Underweight at JP Morgan to reflect the strength in the high-end handset market...
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Analyst upgrades:
No matter what any CEO, analyst, "guru", "market expert", strategist, fund manager, trader or message board poster says (few show all their trades and investments like me, nor are they up 60% in 2008, see details 
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Big Losers: 15 large stocks that have plummeted
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Closing Bell: The meltdown that almost was . . . NCC, HIG, SAP, DNDN
