MOST NOTEWORTHY: C

• Suntrust downgraded CheckFree (NASDAQ: CKFR) to Neutral from Buy based on the Fiserv (FISV) acquisition.

• Colgate-Palmolive (NYSE: CL) was removed from Goldman's Conviction Buy List.

• Wal-Mart (NYSE: WMT) was cut to Neutral from Overweight at JP Morgan.

• Jefferies, RBC Capital, Piper Jaffray, Friedman Billings and Credit Suisse downgraded Thornburg Mortgage (NYSE: TMA) to Underperform based on liquidity concerns.

• Matrix cut Avery Dennison (NYSE: AVY) to Sell from Hold, and said Avery is being affected by the growing price competition in North America and Europe for self-adhesive labels and tabs...

• Merrill downgraded Westwood One (NYSE: WON) to Sell from Neutral.

• Morgan Keegan downgraded Haverty Furniture (NYSE: HVT) to Market Perform from Outperform.

• Hambrecht cut Akamai (NASDAQ: AKAM) to Hold from Buy.

• Raymond James downgraded Domtar (NYSE: UFS) to Outperform from Strong Buy.

Colgate-Palmolive Co. (NYSE: CL) today reported second quarter profit of $415.8 million, or 76 cents per share, compared with $283.6 million, or 51 cents a year earlier. Excluding charges, profit was 84 cents. Revenue rose 13% to $3.4 billion. Wall Street analysts had expected profit of 84 cents on revenue of $3.31 billion. Click here for the earnings release, here for the MarketWatch story and here for the AP story. More detailed post later.

Unilever (NYSE: UL)'s shares were up sharply in European trading early this morning and its ADRs continued higher in trading on the NYSE. At one point, the shares were up 4% to $33.77, a 52-week high.

Speculation is that Colgate-Palmolive (NYSE: CL) might make a run at the Dutch company. The fit would make sense. Unilever's core businesses are in food and personal care products. The company owns a large number of brands, including Dove soap, Slim Fast, Lipton, and Hellman's. Last year the company had sales of over $52 billion.

Unilever has a market cap of $44 billion, and that may be the problem -- Colgate's market cap is just $34 billion. As the smaller company, it would have to take on considerable debt or dilute its shareholders by an astonishing amount. While Colgate's businesses match Unilever's well, the duplicate corporate costs would not likely mean much if they were taken out of companies this large.

Nice rumor but not much more.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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• Morgan Stanley raised Colgate-Palmolive (NYSE: CL) to Overweight from Equal Weight.

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• CIBC upgraded shares of RF Micro Devices Inc (NASDAQ: RFMD) to Sector Outperformer from Sector Performer as the firm expects the company to benefit from improving late CY07 trends.

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• Hutchinson Technology Inc (NASDAQ: HTCH) was upgraded to Hold from Sell at W.R. Hambrecht, believing their thesis has played out and that further risks to estimates are priced into shares at current levels...

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MOST NOTEWORTHY:

• Goldman Sachs upgraded both The Coca-Coca Co (NYSE: KO) and PepsiCo Inc (NYSE: PEP) to Buy from Neutral: The upgrade for Coca-Coca was to reflect the company's recent strong results, and Pepsi's upgrade was to reflect Gatorade's expected profit re-acceleration by the second half of 2007.

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