Analyst Upgrades

• Citigroup (C) to outperform from market perform at Bernstein.
• Cubist Pharma (CBST) to outperform from neutral at RW Baird.
• Pentair (PNR) to buy from hold at Citigroup.
• Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
• SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
• MGM Resorts (MGM) to neutral from Sell at Janney Capital.
• Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
• Mellanox (MLNX) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
• IDEX (IEX) to outperform from perform at Oppenheimer.
• Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
• Ctrip.com (CTRP) to positive from neutral at Susquehanna.
• Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
• Quicksilver (KWK) to outperform from market perform at BMO Capital.

"Marvell Technology (MRVL) delivered disappointing results for its fiscal Q4 2011 (ended January 2011), as well as even more disappointing guidance for its fiscal first quarter," notes tech sector expert Paul McWilliams.

The editor of Next Inning newsletter continues, And to make matters worse, it had one of the poorest conference call presentations that I've ever heard from a major semiconductor company. Nevertheless, we are adding to our position. Here's why.

The US Department of Labor issued a good report on payroll gains (up 192,000) and unemployment, down a bit to 8.9%. But a downgrade on first-quarter earnings at some large US investment banks weighed on the market. And then of course, there was the jump of more than $2/barrel in the price of crude.

The price for WTI is now at its highest since 2008, at $104.85/barrel on fears that the turmoil in North Africa and the Middle East will get worse. Gold prices have risen as well, by more than $13, to $1,429.70/ounce. The euro broke over $1.40, but has pulled back a little as the US dollar continues to weaken.

Here are the numbers for late afternoon trading today:

Dow Jones 12,169.88 -88.32 (-0.72%)
S&P 500 1,321.15 -9.82 (-0.74%)
Nasdaq 2,784.67 -14.07 (-0.50%)

Over the years, Marvell Technology (MRVL) has built a solid business in developing chips for PC storage. The problem is that, with the emergence of tablets, the market is feeling some pressure. While Marvell has been moving hard into the mobile space, the results have been muted.

So, it should be no surprise that the company's recent earnings report was fairly lackluster. In fact, the shares were off 8% to $16.75 in morning trading.

Analyst Upgrades

• Molycorp (MCP) to overweight from neutral at JPMorgan.
• Humana (HUM), HealthSpring (HS) and UnitedHealth (UNH) to buy from neutral at UBS.
• Williams Cos. (WMB) to conviction buy from neutral and UBS (UBS) to buy from neutral at Goldman.
• China Kanghui (KH) to overweight from neutral at Piper Jaffray.
• Arthur J. Gallagher (AJG) to buy from hold at Citigroup.
• Armstrong World (AWI) to buy from hold at BB&T.
• Time Warner (TWX) to buy from hold at Benchmark Co.
• Calpine (CPN) to overweight from equal weight at Barclays.
• 3M Company (MMM) to neutral from underperform and Kirby (KEX) to buy from underperform at BofA/Merrill.

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Analyst Upgrades

• Yingli Green (YGE) to outperform from market perform at Wells Fargo.
• National Semiconductor (NSM) to outperform from market perform at FBR Capital.
• DuPont (DD) to buy from hold at Citigroup.
• Blackboard (BBBB) to overweight from neutral at JPMorgan.
• Kindred Healthcare (KND) to buy from hold at Jefferies.
• Peabody Energy (BTU) to outperform from market perform at BMO Capital.
• Savvis (SVVS) to buy from neutral and InterActiveCorp (IACI) to neutral from underperform at BofA/Merrill.

Marvell Technology (MRVL) was more than 10% higher in early trading action thanks to its second-quarter earnings report.

The semiconductor firm announced earnings of 33 cents per share (nearly $220 million), a substantial jump from 9 cents per share ($58.5 million) in the same quarter a year ago. Taking one-time items out of the equation, Marvell would have banked 40 cents per share. Quarterly revenue increased to $896.5 million from $640.6 million a year ago.

Analyst Upgrades

• Oppenheimer upgraded VeriSign (VRSN) to outperform from perform, citing better-than-expected domain names trends and the potential for a sizeable share buyback. The firm has a $33 price target for shares.
• Oppenheimer also upgraded EMC (EMC) to outperform from perform, citing valuation and expectations for strong Q2 results. The firm set a $22 price target for shares.
• Piper Jaffray upgraded Juniper (JNPR) to overweight from neutral, citing valuation and its longer-term outlook. The firm keeps a $31 price target for shares.
• Kilroy Realty (KRC) was upgraded to neutral from underperform at BofA/Merrill.
• Veolia Environment (VE) was upgraded to buy from add at WestLB.
• QEP Resources (QEP) was upgraded to positive from neutral at Susquehanna.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aeropostale Inc. (ARO) strong Q3 results topped analysts expectations, and it offered Q4 earnings guidance.
• Cascade Corp. (CASC) reported a surprise Q3 profit but lower revenue fell short of expectations.
• Collective Brands Inc. (PSS) reported strong Q3 earnings as well as same-store sales growth.
• Cost Plus Inc. (CPWM) narrowed its net loss in Q3 but revenue and same-stores sales declined.
• Del Monte Foods Co. (DLM) posted strong Q2 results and raised its earnings outlook for the full year.
• Diamond Foods Inc. (DMND) posted better-than-expected Q1 earnings, but said that revenue declined.

Cost Plus Inc. (CPWM) reported Thursday that its net loss from continuing operations for the third quarter of fiscal 2009 came to $22.3 million, or $1.01 per share, compared to a net loss of $24.0 million, or $1.09 per share, last year. Analysts surveyed by Thomson Reuters had expected a loss of $1.10 per share. Cost Plus also said net sales for the quarter totaled $181.9 million, a 10.4% decrease from the year-ago period. Same store sales for the quarter decreased 9.1% due in part to lower furniture sales and a relatively flat customer count.

Diamond Foods Inc. (DMND) reported a record profit of $0.88 per share for the first quarter of fiscal 2010. That was 38% higher than a year ago and topped the analysts' consensus forecast of $0.81 per share. Net sales for the quarter came to $180.6 million, 8% lower than in the prior year, due in part to a late walnut crop harvest. Diamond's forecast for the fiscal year are EPS of $1.72 to $1.82 and revenue of $585 million to $605 million, which is in line with analysts' expectations.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) Q2 profit fell short of estimates as same-store sales declined.
• Ann Taylor Stores Corp. (NYSE: ANN) Q2 earnings beat very low expectations and same-store sales fell.
• Big Lots Inc. (NYSE: BIG) reported better-than-expected numbers for Q2, sending shares upward.
• Burger King Holdings Inc. (NYSE: BKC) posted a better-than-expected Q4 profit though revenue declined.
• China Petroleum & Chemical Corp. posted a record Q2 profit after restrictions on fuel prices were lifted.
• Dell Inc. (NASDAQ: DELL) said its Q2 earnings declined, but they still topped analysts' expectations.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) reported better-than-expected Q1 earnings, lifting shares.
• AutoZone Inc. (NYSE: AZO) posted a better-than-expected Q3 profit said it will continue to buy back shares.
• Bank of Montreal (NYSE: BMO) reported lower Q2 earnings and also announced 1,100 layoffs.
• Big Lots Inc. (NYSE: BIG) higher Q1 earnings topped estimates even though same-store sales fell.
• BioMed Realty Trust Inc. (NYSE: BMR) earnings prospects after the recent capital raise led to a downgrade.

Marvell Technology Group (NASDAQ: MRVL) late Thursday announced first-quarter earnings, excluding items, of a nickel per share, matching the Street's expectations. A year ago, the chipmaker earned 24 cents per share. Quarterly revenue fell 34% to $521.4 million, far short of last year's $804.8 million but better than the consensus estimate.

Unfortunately for Marvell, the revenue expectations on the Street were actually higher, calling for "anywhere from $530 to $540 million," which is "why, when revenue came in at $520 million, although it was better than guidance, it was below the whisper expectations," Barclay's Capital analyst Romit Shah explained.

Marvell Technology Group's (NASDAQ: MRVL) Q3 earnings report had some great numbers that made me want to consider the stock as a potential buy. However, some things about the long-term price action of the company's shares makes me want to avoid the stock altogether.

The bottom line for the storage and networking tech company increased 64% to $0.23 per diluted share; this number beat estimates by three pennies. Pretty cool, right? Here are a couple more positives: operational cash flow increased 41% on a sequential basis compared to Q2 of this year, and free cash flow increased 47% on the same basis. On a year-over-year basis, operational cash flow increased more than ten times, leading to a huge increase in free cash flow. And non-GAAP gross margin, while not seeing an increase, saw fit to at least remain flat instead of decreasing. Not bad. Marvell's shares traded 8% higher in premarket action.

Here's the deal, though. I'm not sure I'd want to buy Marvell at this point in the dreadful economic cycle. Going back to the long-term price action, there's no escaping the significant decline in the stock price as a result of potential future weakness in its business. For example, recently, Melly Alazraki wrote about Apple's (NASDAQ: AAPL) iPhone and how sales of that device might be affected by the recession. Marvell is a supplier to the iPhone.

With the stock in single-digit territory, and with the global markets acting horribly, I just can't see buying Marvell. Indeed, I enjoyed the earnings report. But one must consider the company is unsure about demand for the stuff it sells going forward. Maybe Marvell might make a trade or something, but I'm not ready to go long-term on it just yet.

Disclosure: I don't own any company mentioned; positions can change at any time.