MOST NOTEWORTHY: Horace Mann, Sonus Networks and Mellanox were today's noteworthy initiations:

• Keefe Bruyette views Horace Mann (NYSE: HMN) as fairly valued and expects the competitive personal lines environment and deteriorating loss trends to act as strong headwinds. Shares were assumed with a Market Perform rating and $19 target.
  
• Thomas Weisel initiated Sonus Networks (NASDAQ: SONS) with a Market Weight rating and $3.50 target and believes management's expectation for 20% FY08 revenue growth is too aggressive.
  
• Susquehanna expects Mellanox (NASDAQ: MLNX) to benefit from the growing end markets for InfiniBand technology, and started shares with a Positive rating and $20 target.

OTHER INITIATIONS:

• Jefferies initiated McKesson (NYSE: MCK) with a Buy rating and $67 target.
  
• Philip Morris (NYSE: PM) was initiated at JP Morgan with an Overweight rating and $62 target, and added to the firm's Analyst Focus List.
  
• Baird started Pharmasset (NASDAQ: VRUS) with a Neutral rating and $21 target.
  

Last week I blogged about the discovery of counterfeit Colgate toothpaste from China, contaminated with ethyl glycol, on the shelves of budget stores of the Atlantic seaboard. Today comes word from Walt Bogdanich of the New York Times that the same contaminant has been discovered in Pacific-brand toothpaste distributed in prisons and other state institutions in the Southeast, including Georgia, North and South Carolina, and Florida.

Ethyl glycol, an ingredient in anti-freeze, is a toxic substance that could, even in small amounts, harm children or those with compromised health, yet it is routinely used in Chinese toothpaste destined for domestic consumption. Evidently, nearly one million tubes of this Chinese toothpaste found their way into American institutions. The FDA warning about bad toothpaste caused the Georgia State government to investigate the ingredients in Pacific toothpaste, distributed by American Amenities of Seattle, WA, and the results led to this recall.

Another pharmaceutical distributor, McKesson Corp. (NYSE: MCK), has recalled McKesson everFRESH toothpaste after finding traces of antifreeze in its China-sourced product.

The story comes on the heels of today's news that the Chinese government has shut down 180 food makers for using industrial chemicals in their products.

Earnings continue going strong, and a host of important shareholder meetings also take place this week.

Monday May 7

• SEC to hold Open Commission Meeting at 9am
• McKesson Corporation (NYSE: MCK) to report Q4 earnings; conference call at 5pm. Analysts will concentrate on McKesson's pharmaceutical solutions revenue, new distribution clients/new business, new IT solutions introduced, labor/benefits costs, operating expenses, sector position by business line, and margins.

Tuesday May 8

• Echostar Communications Corporation (NASDAQ: DISH) to hold shareholder meeting at 2pm.
• Walt Disney Company (NYSE: DIS) to report Q2 earnings; conference call at 4:30pm.
• Electronic Arts Inc (NASDAQ: ERTS) to report Q4 earnings; conference call at 5pm. Investors will look for comments on how the company is integrating its game line-up onto the three new game systems -- PlayStation 3, Xbox 360 and Wii.

Wednesday May 9

• Eastman Kodak Company (NYSE: EK) to hold a shareholder meeting at 1pm.
• Ericsson (NASDAQ: ERIC) will hold a two-day capital markets meeting in Stockholm.

Thursday May 10

• Viacom Inc (NYSE: VIA) to report Q1 earnings; conference call at 8:30am. In addition to motion picture results, analysts will focus on VIA's broadcast advertising revenue, and the company's efforts to broaden its relatively-tight-demogaphic cable television audience.
  
• Microsoft Corporation (NASDAQ: MSFT) to hold Windows Mobile Business Update at 12pm.
• Google Inc (NASDAQ: GOOG) to hold a shareholder meeting at 5pm in Mountain View.

Friday May 11

• American International Group (NYSE: AIG) to report Q1 earnings; conference call at 8:30am. Analysts will concentrate of AIG's overall premium growth for its property/casualty unit, along with improved cost controls company-wide -- a pivotal factor for a superior performance, moving forward.