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Analyst calls: ANN, AIV, DHI, BA, BT, LINTA, B, WW ...

Analyst upgrades:
  • Stephens upgraded shares of Ann Taylor (NYSE: ANN) to Overweight from Equal Weight to reflect the company's restructuring program, reductions in inventory and share repurchase program.
  • AIMCO (NYSE: AIV) was upgraded to Buy from Hold at Deutsche Bank.
  • UBS upgraded D.R. Horton (NYSE: DHI) to Neutral from Sell.
  • Argus believes BigBand Networks (NASDAQ: BBND) is succeeding by adding new customers and driving new business with existing customers. Shares were upgraded to Buy from Hold.
  • ThinkPanmure expects Capella Education (NASDAQ: CPLA) to attract students at a faster rate in the coming quarters and to improve operating margins. The firm raised shares to Buy from Accumulate and raised its target to $60 from $62.
  • Advanced Medical (NYSE:EYE) was lifted to Hold from Underperform at Jefferies.
Analyst downgrades:

Continue reading Analyst calls: ANN, AIV, DHI, BA, BT, LINTA, B, WW ...

A stock that profits from foreclosures

For speculators, Martin Weiss has uncovered a stock that benefits from rising home foreclosures. In the higher risk section of his The Safe Money Report he looks at Lender Processing Services (NYSE: LPS).

"We have a new speculative pick: Lender Processing Services. This company was spun off from Fidelity National Information Services a couple of months ago.

"It is the biggest outsourcing firm in the business of processing home loan defaults and foreclosures.

"As you might imagine, that business is booming due to the massive flood of troubled mortgages -- revenues in the company's default services unit soared 90% to $197.2 million in the second quarter from a year earlier.

"LPS also has a division that helps investors, banks and other clients model prepayments, defaults and other characteristics of mortgage-related securities.

"With everyone trying to figureout the value of all the troubled paper out there, the demand for those services should also ramp up. We emphasize, however, that this is a speculative play."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Analyst calls: BIIB, ALU, LYG, MAR, HOT, JCP, MYL, CBS ...

Analyst upgrades:
  • JMP Securities upgraded Vertex Pharma (NASDAQ: VRTX) to Outperform from Market Perform following better-than-expected interim data for telaprevir.
  • Lazard Capital upgraded shares of Biogen Idec (NASDAQ: BIIB) to Buy from Hold on valuation after their physician survey indicated solid sales growth in the company's MS franchise.
  • Calyon upgraded Data Domain (NASDAQ: DDUP) to Add from Neutral based on positive channel checks and valuation.
  • Goldman added Buckeye GP (NYSE: BGH) to the Conviction Buy List.
  • Alcatel-Lucent (NYSE: ALU) was upgraded to Hold from Sell and Ericsson (NASDAQ: ERIC) was raised to Hold from Reduce at WestLB.
  • Keefe Bruyette upgraded Cowen Group (NASDAQ: COWN) to OUtperform from Market Perform.
Analyst downgrades:
  • Deutsche Bank downgraded shares of Lloyds TSB Group (NYSE: LYG) to Sell from Hold as they believe loan loss risk will outweigh synergies from the acquisition of HBOS (HBOOY).
  • Citigroup downgraded shares of National Financial Partners (NYSE: NFP) to Hold from Buy and removed the stock from the Top Picks Live List after the company announced July and August revenues and said pressure continues. The firm lowered their target to $20 from $28.

Continue reading Analyst calls: BIIB, ALU, LYG, MAR, HOT, JCP, MYL, CBS ...

Vinyl records making a surprise return

The Associated Press reported Monday that vinyl records have made a surprising return in some markets in the last year. A story about an employee at the Fred Meyer retail chain mistakingly ordering the vinyl edition of an album instead of the special edition CD with a DVD illustrates the impressive jump LP sales made between 2006 and 2007, rising more than 36% while CD sales dropped 17% due to increased digital downloads (CD sales remain hundreds of millions of copies higher though). The article also indicates that regional and specialized chains are not the only outlets selling LPs successfully, with both Amazon.com, Inc. (NASDAQ: AMZN) and Best Buy Co, Inc. (NYSE: BBY) creating sections and testing sales.

The resurgence in LP sales has also stoked the raging debate about differences between analog and digital formats. Melinda Merrill, a spokeswoman for Fred Meyer told the AP "It's not just a nostalgia thing, the response from customers has just been that they like it, they feel like it has a better sound." The AP also reports that sound is not a central factor in increasing sales. The experience of listening to an LP, much more involved than a CD or a digital file is drawing new listeners and keeping old ones. This tendency has lent to more sales of players and the pressing business has been renewed.

In the end, increased LP sales make it clear that consumers care about more than the music that is produced. Jay Millar, a director of marketing at United Record Pressing indicates that he feels vinyl is "for the die-hard music consumer," or the consumer that isn't looking for the most convenient method of acquiring an album and its music. Unfortunately, the mainstream music industry and its consumers will continue the push away from LPs and CDs, but if regional or independent retailers can keep the limited pressings intact via strong and surprising sales, then the history of the music industry and the "original" format that is as close to live music as you can get will continue to live.

Amazon.com sells hope for the vinyl crowd

Next time my Mom threatens my Dad to toss his hundreds of vinyl LPs that he's collected over the last 20+ years, I am going to direct him to the latest in turntables -- one that allows users to convert LPs to digital files directly from the platter onto one's hard drive.

Today's Sunday New York Times reports on two new consumer turntables on the market at $200 that will let one's memories re-live in a digital format, including the iPod.

One of the new turntables is called the Ion iTTUSB Turntable with USB Record and it is listed for $199, but can be bought for around $150 on Amazon.com, Inc. (NASDAQ:AMZN). This turntable is compatible with Macs and PCs. However, one downside is that the process of converting these old LPs can be time-consuming. The turntable has to be assembled properly and the LPs must be thoroughly cleaned. The recording software which comes on a CD takes about a half hour to set up properly, and may take even longer if you have a slower learning curve.

I know my Mom will be relieved to know that there's hope that the many apple crates packed with LPs gathering dust in our basement may soon be gone. (Though I think my Dad cherishes the album cover art as much as he does the music, so the battle may not be totally won.)

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Last updated: November 10, 2009: 08:43 AM

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