King Pharma (NYSE: KG) is recently up 25c to $10.49.
KG, a vertically integrated pharmaceutical company with September total revenues of $544 million. It has been rumored as a takeover candidate in the past.
KG call option volume of 5,241 contracts compares to put volume of 366 contracts. KG January option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting larger upside price fluctuations.
Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Comcast (NASDAQ: CMCSA) recently down 12c to 20.43. Goldman says: "We believe that it is likely that CMCSA submits a bid in the 700 MHz auction by the 12/3 deadline, either by itself or with a partner(s) because it is a long term imperative." CMCSA December and January option implied volatility of 27 is below its 26-week average of 32 according to Track Data, suggesting decreasing risk.
King Pharma (NYSE: KG) is recently up 37c to $10.71 on renewed buyout chatter. KG December 12.5 calls have traded 103 times on transaction volume of 4,259 contracts, above its open interest of 796 contracts. KG December & January option implied volatility of 65 is above its 26-week average of 43 according to Track Data, suggesting option traders expect KG to trade above $12.75 in the next three weeks.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
MOST NOTEWORTHY: VeraSun Energy (VSE), BioFuel Energy (BIOF), Electronic Arts (ERTS) and Take-Two Interactive Software (TTWO) were today's noteworthy initiations:
Citigroup initiated shares of VeraSun Energy (NYSE: VSE) and BioFuel Energy with Buy ratings, as the firm believes the ethanol industry is reaching an inflection point as profitability should be much improved in 2008.
BioFuel (NASDAQ: BIOF) was also initiated with a Hold rating at AG Edwards on valuation and an Overweight rating at JP Morgan, who believes BioFuel has good growth prospects but trades at a discount relative to peers.
Electronic Arts (NASDAQ: ERTS) was initiated with a Neutral rating at Cowen, citing the company's rich valuation and mixed growth outlook.
Cowen resumed coverage of Take-Two Interactive Software (NASDAQ: TTWO) with an Outperform rating, as the firm believes TTWO is positioned for a strong 2H07 given the Grand Theft Auto IV and other titles...
OTHER INITIATIONS:
CDC Corporation (NASDAQ: CHINA) was initiated with a Buy rating and $12 target at Montgomery.
Oppenheimer started shares of Chelsea Therapeutics (NASDAQ: CHTP) with a Buy rating and $12 target.
Banc of America initiated shares of Charming Shoppes (NASDAQ: CHRS) with a Neutral rating and $11 target.
Raymond James initiated shares of Geokinetics (AMEX: GOK) with a Market Perform rating.
King Pharmaceuticals (NYSE: KG) was initiated at Goldman Sachs with a Neutral rating and $19 target.
MOST NOTEWORTHY: Dow Chemical (DOW), Smart Modular (SMOD), Wolverine World Wide (WWW), Win-Dixie Stores (WINN) and Blue Nile (BLUE) were today's noteworthy initiations:
UBS is positive on the ethylene cycle over the next two years and believes Dow Chemical (NYSE: DOW) can beat 2008 consensus estimates, initiating shares with a Buy rating.
JMP Securities started Smart Modular (NASDAQ: SMOD) with a Strong Buy as a unit volume growth theme without much dependence on commodity memory chip pricing.
Citigroup expects further upside given Wolverine World Wide's (NYSE: WWW) strong portfolio of brands, further growth opportunities through line extensions and international growth. The firm started Wolverine World Wide with a Buy rating and $33 target.
Winn-Dixie Stores (NASDAQ: WINN) was started with a Market Perform rating, citing low levels of profitability and unproven ability to drive sustainable profitable sales.
American Technology believes the valuation of Blue Nile (NASDAQ: NILE) leaves little room for upside, despite a highly attractive business model and strong fundamentals, and started shares with a Sell rating and $45 target...
MOST NOTEWORTHY: Amgen (AMGN), Wendy's (WEN), webMethods (WEBM), Global Crossing (GLBC) and International Securities Exchange (ISE) topped out today's noteworthy downgrades:
A host of companies shot down Amgen Inc (NASDAQ: AMGN) today:
Lazard cut the drugmaker to Sell from Buy while Citigroup cut them to Sell from Hold. JP Morgan and HSBC downgraded Amgen to Neutral from Overweight while Morgan Stanley cut shares to Equal-Weight from Overweight.
Elsewhere, Wendy's Int'l (NYSE: WEN) was downgraded by Citigroup to Hold from Buy on valuation.
Deutsche Bank cut shares of webMethods Inc (NASDAQ: WEBM) to Hold from Buy as they expect the software AG merger to go through.
Global Crossing (NASDAQ: GLBC) was downgraded to Hold from Buy at Deutsche Bank following the company's Q1 miss and revised guidance.
The International Securities Exchange (NYSE: ICE) was downgraded at Banc of America given potential risks to the Eurex bid. They are not counting on rival bids and recommend moving to the sidelines...
OTHER DOWNGRADES:
HSBC downgraded Rio Tinto (NYSE: RTP) to Neutral from Overweight.
Morgan Stanley downgraded King Pharma (NYSE: KG) to Equal Weight from Overweight. Pacific
MOST NOTEWORTHY: Brinker International Inc (EAT), National Semiconductor Corp (NSM), and three select transportation stocks were today's more notable upgrades:
UBS upgraded Brinker International Inc (NYSE: EAT) to Buy from Neutral with a $38 target, citing valuation following the recent sell-off.
National Semiconductor Corp (NYSE: NSM) was upgraded to Accumulate from Source of Funds with a $28 target at ThinkEquity, following the company's Q3 report and guidance.
Three transportation companies were upgraded at Stifel: Con-Way Inc (NYSE: CNW), FedEx Corp (NYSE: FDX) and Universal Truckload Services Inc (NASDAQ: UACL) were upgraded to Buy from Hold to reflect attractive valuations.
OTHER UPGRADES:
Credit Suisse upgraded Office Depot, Inc (NYSE: ODP) to Outperform from Neutral.
JMP Securities upgraded Texas Instruments Inc (NYSE: TXN) to Market Outperform from Market Perform ahead of the mid-quarter upgrade. Texas Instruments was also upgraded to Buy from Hold at Stifel.
Calyon Securities upgraded Halliburton Co (NASDAQ: HAL) to Add from Neutral on valuation.
Bernstein upgraded Charles Schwab Corp (NASDAQ: SCHW) to Outperform from Market Perform.
BMO Capital Markets upgraded Cognos Inc (NASDAQ: COGN) to Outperform from Market Perform. BMO believes Cognos will receive additional business due to Oracle Corp's (NASDAQ: ORCL) acquisition of Hyperion Solutions Corp (NASDAQ: HYSL) and also see a greater chance that Cognos itself could be acquired.
Cowen upgraded King Pharmaceuticals (NYSE: KG) to Neutral from Underperform citing Skelaxin's new label approval, which likely delays a generic.
MOST NOTEWORTHY: FedEx Corp (FDX) and Applied Materials Inc (AMAT) were today's notable upgrades:
Morgan Keegan upgraded FedEx Corp (NYSE: FDX) to Outperform from Market Perform. The firm said recent data indicates that the company's core business segments are well-positioned for operational improvements given current initiative; data also indicates that we may have reached a bottom in the economy and can potentially expect a soft landing.
Applied Materials Inc (NASDAQ: AMAT) was upgraded to Buy from Hold with a $25 target at First Albany and Stanford, as they believe the company's memory cycle is better than investors may think.
OTHER UPGRADES:
Coca-Cola Enterprises Inc (NYSE: CCE) was upgraded to Market Perform from Underperform at Bernstein because the firm no longer sees any major negative catalysts ahead.
Apria Healthcare Group Inc (NYSE: AHG) was upgraded to Hold from Sell with a $30 target at Deutsche Bank. The firm said Apria reported a solid fourth quarter and near-term momentum was more clear.
JP Morgan upgraded King Pharmaceuticals inc (NYSE: KG) to Neutral from Underweight on valuation and the potential of a prolonged delay of generic Skelazin.
Citigroup upgraded Ciena Inc (NASDAQ: CIEN) to Buy from Hold, but still considers JDS Uniphase Corp (NASDAQ: JDSU) their top pick for capacity exposure.
Jefferies raised Applebee's Int'l Inc (NASDAQ: APPB) to Hold from Underperform to reflect the company's decision to seek strategic alternatives.
Prudential upgraded Nasdaq Stock Market Inc (NASDAQ: NDAQ) to Neutral from Underweight with a $30 target.
JMP Securities upgraded KB Home (NYSE: KBH) to Outperform from Market Perform with a $60 target.
King Pharma (NYSE: KG) is recently up 25c to $10.49. 
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