Ad executive: "Guys, guys! I got an idea about how we can change the market's perception of our company and move Xerox (NYSE: XRX) into the 21st century."

CEO: "How exciting! A new product? An innovative marketing campaign?

Ad executive: Even better. A new logo.

The new logo (shown at right) marks the first time that Xerox has identified itself with an image rather than just "XEROX." And what a creative image it is: a circle with a little "X" and now "xerox" is written in lowercase! I shudder to think about how much was spent on Madison Avenue PR firms for that bit of marketing genius.

The move is part of a plan to update Xerox's stodgy image -- the stock hasn't been cool since the 1970s.

But according to The New York Times, "But Michael Watras, president of the brand consultancy Straightline International, said nothing short of a name change would wrest Xerox from the grasp of its copier reputation. 'They should have kept the Xerox brand on some products, but renamed the company.' he said. 'Without that, this is money poorly spent. If I were a shareholder, I'd be outraged.'"

I'm inclined to agree with Mr. Watras. When your name is used as a verb meaning to copy, it's hard to get past the image as a copy company with a simple logo change.

There may be many good reasons to own an iPhone from Apple Inc. (NASDAQ: AAPL). Although I still haven't gotten my hands on one, I have been able to get a good look at some of what the device can do. Perhaps these aren't the ten best reasons, but they are ten good ones.

To the best of my knowledge, all of the photo gallery images that I'm providing here for you have been sent using the iPhone. Though I'm impressed, I did notice that the iPhone image quality declines slightly as light levels decrease, but it still does remarkably well for a phone. Yes folks, the attached gallery pictures were sent by mobile phones.

The gallery images are all at original resolutions and are all unretouched. If it is true that we can now take digital images of this quality and instantly download them to our favorite picture manager as well as e-mail them to anywhere in the world that we choose, it is my opinion that the makers of memory cards for digital cameras had better be working on some new product ideas, because I'm guessing that image data storage has just taken a turn for the best.

Please do enjoy the gallery.

MOST NOTEWORTHY: Chittenden Corp (CHZ), Digital River (DRIV), Image Entertainment (DISK) and Foot Locker (FL) were today's noteworthy downgrades:

• Chittenden Corp (NYSE: CHZ) was downgraded to Sell from Hold at AG Edwards based on the buyout news from People's United Financial (PBCT).

• Digital River (NASDAQ: DRIV) was downgraded to Hold from Buy, and its target was cut to $44, at Jeffries based on the weak Microsoft (MSFT) ramp and weakness in the Symantec (SYMC) transition.

• SMH Capital downgraded shares of Image Entertainment (NASDAQ: DISK) to Sell from Neutral and recommends investors take profits on the upside and sell shares.

• Foot Locker (NYSE: FL) was downgraded to Hold from Buy at Matrix, as the firm believes fundamentals trends are turning negative; the firm sees limited upside from current levels.

OTHER DOWNGRADES:

• Bed Bath & Beyond (NASDAQ: BBBY) was downgraded to Market Perform from Outperform at Raymond James.

• Johnson & Johnson (NYSE: JNJ) was removed from Goldman Sachs' Americas Conviction Buy List.

• Web.com (NASDAQ: WWWW) was downgraded to Hold from Buy at Roth Capital Partners.

• Andrew Corp (NASDAQ: ANDW) was downgraded to Neutral from Buy at Oppenheimer.

• JP Morgan downgraded shares of SkyWest (NASDAQ: SKYW) to Underweight from Overweight and shares of Republic Airways Holdings (NASDAQ: RJET) to Neutral from Overweight.

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