MOST NOTEWORTHY: Kohlberg Capital, ClickSoftware and Liberty Property Trust were today's noteworthy initiations:

• JMP Securities started shares of Kohlberg Capital (NASDAQ: KCAP) with an Outperform rating and $14 target. The firm believes Kohlberg Capital's alliance with Kohlberg and Company allows Kohlberg Capital to take advantage of considerable expertise. JMP Securities believes Kohlberg Capital has an attractive risk/reward ratio.
  
• Roth Capital initiated ClickSoftware (NASDAQ: CKSW) with a Hold rating and $3.60 target and expects EPS pressure from the depreciating dollar near-term.
  
• Liberty Property Trust (NYSE: LRY) was initiated with a Hold rating at Stifel, citing lack of internal earnings divers and fair valuation.

OTHER INITIATIONS:

• Oppenheimer initiated VisionChina Media (NASDAQ: VISN) with a Perform rating and $25 target.
  
• Merrill assumed MGM Mirage (NYSE: MGM) with a Neutral rating.
  
• Morgan Stanley started BJ's Wholesale (NYSE: BJ) and Costco (NASDAQ: COST) with Equal Weight ratings.

MAJOR PAPERS:

• According to internal company and agency documents, the Wall Street Journal reported that the FAA is investigating into why AMR Corporation's (NYSE: AMR) American Airlines ordered mechanics to skip specific safety instructions to detect damage to planes from potential lightning strikes.
• In order to compete more effectively against Apple Inc's (NASDAQ: AAPL) iPhone, the Wall Street Journal reported that Research in Motion Limited (NASDAQ: RIMM) is planning to introduce "Thunder," a touch-screen version of its BlackBerry device.

OTHER PAPERS:

• Yahoo! Inc (NASDAQ: YHOO) is trying to quickly put the finishing touches on a search advertising deal with Google Inc (NASDAQ: GOOG) as billionaire Carl Icahn launches a proxy fight for control of Yahoo's board, according to the New York Post. Yahoo! hopes to announce a deal with Google to create an open platform system within the next week, two inside sources said.
• The New York Post reported that a partnership of MGM Mirage (NYSE: MGM) and investment company Dubai World may seek to buy the Drake Hotel site from developer Harry Macklowe. If a deal is reached, MGM and Dubai World would assume $580M in defaulted debt and interest, inside sources said.

MGM Mirage (NYSE: MGM) stock is falling after an analyst at UBS downgraded the stock to "Neutral" from "Buy," citing declining business on the Las Vegas Strip. A Wachovia analyst also cut his estimates for MGM and other casinos, saying that the Vegas market is "uncertain." If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MGM.

After hitting a one-year high of $100.50 in October, the stock hit a one-year low of $57.26 in March.. This morning, MGM opened at $60.58. So far today the stock has hit a low of $57.90 and a high of $60.58. As of 1:45, MGM is trading at $58.84, down $2.23 (-3.9%). The chart for MGM looks neutral but improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $75 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in two and a half months as long as MGM is below $75 at June expiration. MGM would have to rise by more than 28% before we would start to lose money. Learn more about this type of trade here.

MGM hasn't been above $75 since early January and has shown resistance around $65 recently. This trade could be risky if the company's earnings (due out in late April or early May) are a positive surprise, but even if that happens, this position could be protected by resistance MGM might find around $73, where it topped out in January and February.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MGM.

"MGM Mirage (NYSE: MGM) is arguably the world's top publicly traded casino gaming company; from budget-minded families at the Excalibur to high-rollers at the Bellagio, no segment of the market should slip through the cracks," says value investor Nathan Slaughter.

In Half-Priced Stocks, he explains, "But this is just the beginning: the firm has ambitious plans to leverage its brands and take its gaming/hospitality experience to other growing markets around the world."

"Thanks in part to a landmark merger with cross-town rival Mandalay Group several years ago, MGM is now the dominant player on the booming Las Vegas Strip. The merger also brought together two complementary property portfolios, adding Mandalay's low/mid-tier casinos to MGM's mid/high-end resorts.

"The company also has upscale resorts in other high-profile markets, including Atlantic City's Borgata, Detroit's MGM Grand, and the Beau Rivage on Mississippi's Gulf Coast. Combined, the firm operates around 20 properties featuring more than 42,000 hotel rooms.

"And looking ahead, a busy development pipeline and global expansion plans should keep both of those totals moving briskly forward. The company recently celebrated the introduction of MGM Grand Detroit last October, and that property has already hit the ground running and emerged as a market leader.

MGM Mirage (NYSE: MGM) is recently trading at $68.73 in pre-open trading, below its close of $71.81 Thursday.

Goldman says: "MGM pre-released 4Q2007-results appear below expectations." MGM provided a construction update on MGM's CityCenter saying "we expect the construction costs of CityCenter to be $300 million to $600 million higher than our previous estimates of $7.8 billion."

MGM overall option implied volatility of 43 is near its 26-week average of 42 according to Track Data, suggesting non-directional movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MGM Mirage (NYSE: MGM) and Dubai World announced this morning they would launch a cash tender offer to buy back up to 10 million MGM common shares for $75 to $80 each. The companies' decision came on worries that an economic slowdown will lower demand for gambling. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MGM.

The stock hit its 52 week high of 100.50 in October and set its 52 week low of 59.74 in January. MGM opened this morning at $73.71. So far today the stock has hit a low of $71.82 and a high of $74.29. As of 12:40, MGM is trading at $72.43, up $2.45 (3.5%). The chart for MGM looks bearish and steady while S&P gives MGM a neutral 3 STARS (out of 5) hold rating.

Dubai World, a state owned investment company, announced that it has increased its ownership in MGM Mirage (NYSE: MGM) to 6.5% by purchasing an additional five million shares of stock in the company.

Following the announced purchase, Lawrence Klatzkin of Jefferies & Co. told his clients that MGM is one of his top three picks and maintains a "buy" rating. According to Klatzkin, investors can expect to see Dubai World continue to add to its MGM holdings. This will continue to help keep the stock strong and definitely minimize any sort of downside risk.

Dubai, which has been swimming in money since the oil boom brought billions into the economy, has been moving fast over the past decade to branch out in its revenue streams. Seeing the end of the country's oil reserves in the near future, the country has been working hard to become one of the world's top tourist destinations, and moving into Las Vegas gaming is just one more step in the country's strategy to remain a relevant world player once the oil runs dry.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

Monday October 29

• VNUS Medical Technologies (NASDAQ: VNUS) patent infringement lawsuit against Angiodynamics (NASDAQ: ANGO), Diomed Holdings (AMEX: DIO), Vascular Solutions (NASDAQ: VASC) begins.
• Verizon Communications (NYSE: VZ) to report Q3 earnings; conference call at 8:30am.

Tuesday October 30

• Sirius Satellite Radio (NASDAQ: SIRI) to report Q3 earnings; conference call at 8am.
• MGM Mirage (NYSE: MGM) to report Q3 earnings; conference call at 11am.
• U.S. Steel Corporation (NYSE: X) to report Q3 earnings; conference call at 2pm.

Wednesday October 31

• Kraft Foods (NYSE: KFT) to report Q3 earnings; conference call at 8am.
• Smith Micro Software (NASDAQ: SMSI) to report Q3 earnings; conference call at 2pm.

Thursday November 1

• PDUFA date for Forest Laboratories (NYSE: FRX) and Mylan Laboratories' (NYSE: MYL) Nebivolol for hypertension.
• Ford Motor Company (NYSE: F) to report October sales at 1pm.
• General Motors Corporation (NYSE: GM) to report October sales at 2pm.

Friday November 2

• PDUFA Date for Sciele Pharma's (NASDAQ: SCRX) Sular formulation
• PDUFA Date for GlaxoSmithKline's (NYSE: GSK) Variza for major depression disorder

Resort and Casino giant MGM Mirage (NYSE: MGM) is expected to announce its latest big bet today... a $5 billion casino project in Atlantic City.

The new project gained approval on Monday by the company's board of directors at a meeting held in Detroit, and construction is expected to get under way next year and complete by 2012.

The new development should be an impressive addition to the Atlantic City strip. The new casino, called the MGM Grand Atlantic City will definitely make a bold statement with its 3,000 rooms and suites in three different hotel towers. Big time gamers out there will be able to get their full of action from the casino's 5,000 slot machines and 200 table games.

MAJOR PAPERS:

• Negotiations continued last night on a new labor agreement between Chrysler and the UAW, but it is unclear if an agreement will be reached by today's 11am deadline, reported the Wall Street Journal (subscription required).
• MGM Mirage (NYSE: MGM) is today expected to announce plans to build a $5B resort in Atlantic City, NJ that will be completed in 2012, reported the Wall Street Journal.
• The CEO of Swiss pharmaceutical company Roche Holding (OTC: RHHBY), Franz Humer, said he has no intention of increasing his company's $75 per share bid for U.S. diagnostics company Ventana Medical Systems (NASDAQ: VMSI), and is "very confident" that the offer will succeed, reported the Financial Times (subscription required).

OTHER PAPERS:

• Crain's Chicago Business reported that Aon Corporation (NYSE: AOC) has won back the insurance brokerage business of Sears Holdings Corporation (NASDAQ: SHLD).

WEBSITES:

• Harry Reid, the Senate Majority Leader, confirmed that there's little chance this year -- due to a crowded legislative calendar -- that there will be legislation to increase taxes on the private equity industry, reported TheDeal.com (subscription required).

Last year, more money was gambled in Macao, China's version of Las Vegas, than anywhere else in the world. The big players in the casino world are rapidly expanding to serve what they see as a burgeoning market. This week Las Vegas Sands (NYSE:LVS) rolled out the biggest table stake yet, opening the mammoth Venetian Macao.

Mammoth may be an understatement for this complex, which Las Vegas Sands claims is the second largest single-phase construction in the world, behind only a flower warehouse in Holland. Check out these numbers:

• 3,000 rooms
• 1.2 million square feet of convention space
• 550,000 square ft of gaming space, with 3,400 slots, 870 gaming tables
• 15,000 seat theater soon to feature the Cirque du Soleil.
• 10,000-person staff.

MAJOR PAPERS:

• According to the Wall Street Journal (subscription required), citing people familiar with the matter, E*Trade Financial Corporation (NASDAQ: ETFC) and TD Ameritrade Holding Corporation (NASDAQ: AMTD) have been in serious merger discussions for weeks, but are still not close to a deal.
• Dubai World, a holding company for the Persian Gulf state, will purchase a 9.5% stake in MGM Mirage (NYSE: MGM), the Kirk Kerkorian controlled Las Vegas casino company, for $5B. The deal will also give Dubai World 50% ownership in CityCenter, MGM's most ambitious development project, reported the Wall Street Journal.
• The Wall Street Journal reported that almost 10 months after Google Inc (NASDAQ: GOOG) acquired YouTube for $1.65B, the video-sharing site is rolling out its first advertisements in the videos.
• The Financial Times (subscription required) reported that private equity firm WL Ross is looking to get involved in the subprime lending business, said the firm's owner, Wilbur Ross. WL Ross may look to acquire lenders, mortgage portfolios or even companies that service loans, Ross added.

OTHER PAPERS:

• The New York Times reported that Kazakhstan's government is threatening to suspend one of the world's largest oil projects, due to environmental damage it says the work is causing in the Caspian Sea. The consortium developing the field includes Eni, Exxon Mobil Corporation (NYSE: XOM), Royal Dutch Shell (NYSE: RDS.A), ConocoPhillips (NYSE: COP), and Total SA (NYSE: TOT).

MOST NOTEWORTHY: MGM Mirage (MGM), Motorola (MOT), Navteq (NVT), ExxonMobil (XOM) and Intel (INTC) were today's noteworthy upgrades:

• Lehman upgraded shares of MGM Mirage (NYSE: MGM) to Overweight from Equal-Weight on valuation as they believe the market is currently undervaluing the company's growth prospects.

• Motorola (NYSE: MOT) was raised to Market Perform from Underperform at JMP Securities on valuation.

• Following the acquisition of competitor Tele Atlas by TomTom, CIBC believes Navteq (NYSE: NVT) is well positioned to gain share, upgrading the stock to Sector Outperformer from Sector Performer, and believes Garmin (GRMN) should consider buying the company for its exclusive map content.

• AG Edwards believes the recent pullback in ExxonMobil (NYSE: XOM) has created a buying opportunity, upgrading shares to Buy from Hold.

• Intel (NASDAQ: INTC) was added to American Technology's Focus List following its recent sell-off...

OTHER UPGRADES:

• Citigroup upgraded Ingersoll-Rand (NYSE: IR) to Buy from Hold.

• Cox Radio (NYSE: CXR) was upgraded to Outperform from Market Perform at Wachovia.

• JP Morgan upgraded transports Knight Transportation (NYSE: KNX) and Norfolk Southern (NYSE: NSC) to Overweight from Neutral.

• PepsiCo (NYSE: PEP) was upgraded to Buy from Hold at Matrix USA.

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

Kirk Kerkorian's Tracinda Corp. has dropped its attempt to cherry-pick MGM Mirage's Bellagio and CityCenter properties after the corporation announced a new deal with Bahamas casino owner Sol Kerzner to build a multi-billion dollar casino complex on the Strip in Las Vegas.

Many thought that Kerkorian's intention was to nudge MGM Mirage (NYSE:MGM) onto the sale block, to see what his 56% of the remaining company assets might fetch in a buyout-friendly climate. The latest deal, with its implications for increased debt and holdings value, apparently caused him to rethink this move, at least for the moment.

MGM Mirage already has a huge footprint in Las Vegas, but remains very aggressive (i.e. carrying a considerable debt load) in pursuing further growth. Its new $725 million Detroit casino is scheduled to open late this year. The CityCenter complex in Las Vegas has tied up $7.4 billion and won't be ready until 2009, and MGM has put another $1 billion into a cooperative venture, MGM Grand Macau, opening later this year. It is also in talks about another huge development on the Cotai strip in Macau.

Those punters who jumped on the bandwagon at the initial announcement of Kerkorian's interest in Bellagio are jumping back off this morning. MGM Mirage stock was down more than 10% in early trading.

MAJOR PAPERS:

• The Wall Street Journal reported that Toyota Motor Corporation (NYSE: TM), which launched a factory-building blitz five years ago, is now being urged by senior members of the founding family to stop building factories in the United States on fears it will hurt the company's efficiency.
• Kirk Kerkorian, who controls MGM Mirage (NYSE: MGM), had planned to buy the Bellagio Hotel and Casino and the $7.4B Project City Center from MGM. But that deal now appears to be off, according to the Wall Street Journal.

OTHER PAPERS:

• The U.K. Times reported that News Corporation (NYSE: NWS) has had preliminary talks with Yahoo Inc (NASDAQ: YHOO) about giving its social networking site MySpace to the online search company, in exchange for a 25% stake in Yahoo!.
• The New York Times reported that NYC Mayor Michael Bloomberg will leave the Republican Party and register as an Independent.
• The New York Times also reported that Microsoft Corporation (NASDAQ: MSFT) will pay Take-Two Interactive Software (NASDAQ: TTWO) $50M for two exclusive downloadable episodes of Grand Theft Auto for the Xbox 360.