Technology giant Hewlett Packard Company (HPQ) will be reporting its fiscal fourth quarter results following the market close Monday, with analysts expecting to see earnings of $1.27 per share.

During the same period last year, the company had earnings of $1.14 per share.

There will definitely be a lot of attention paid to the company's quarterly report, but that does not have so much to do with the company's figures as it does with the company's new CEO, Leo Apotheker.

SAP AG (NYSE: SAP) closed at $48.05 Friday.

Michael A Cusumano, a professor at the Sloan School of Management at the Massachusetts Institute of Technology, said in the New York Times on February 24, 2008 that Microsoft (NASDAQ: MSFT), "rather than acquire Yahoo (NASDAQ: YHOO), should pursue SAP." SAP is a German software company has more than 46,100 customers in more than 120 countries running applications from SAP.

SAP overall option implied volatility of 31 is near its 26-week average according to Track Data, suggesting non-directional risk.

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

MOST NOTEWORTHY: Electronics for Imaging, Fundtech and VIA Pharmaceuticals were today's noteworthy initiations:

• Banc of America initiated Electronics for Imaging (NASDAQ: EFII) with a Buy rating and $26.50 target, as it sees leverage potential in 2008 from cost reductions and revenue mix and believes stronger controller revenue mix and ink from inkjets could help gross margin in 2H08.
  
• JMP Securities expects Fundtech (NASDAQ: FNDT) to benefit from an upgrade cycle among large banks to improve their payment systems, starting shares off with a Market Outperform rating and $19 target.
  
• Rodman & Renshaw resumed coverage of VIA Pharmaceuticals (NASDAQ: VIAP) with an Outperform rating and $4 target. The firm expects VIAP's VIA-2291, a treatment for Antherosclerosis, Ph II data expected in mid-2008 to drive shares.

OTHER INITIATIONS:

• Oppenheimer initiated Ardea Biosciences (NASDAQ: RDEA) with a Buy rating and $15 target.
  
• SAP AG (NASDAQ: SAP) was initiated with an Equal Weight rating at Lehman.
  
• CIBC resumed coverage of Limelight Networks (NASDAQ: LLNW) with a Sector Outperformer rating.

Sybase(NYSE;SY), a global enterprise software company with June 2007 total quarterly revenue of $1 billion, is recently up 42 cents to $24.88. SY has a market cap of $17.6 billion. SY is expected to announce EPS on 10/25. According to Dow Jones, Sandell Asset Management, an owner of 6% of SY, wants SY to repurchase shares or look at selling the company. SAP AG (NYSE:SAP), recently announced a $6.8 billion takeover of Business Objects (NASDAQ:BOBJ) and Oracle (NASDAQ:ORCL) proposed taking over BEA Systems (NASDA:-BEAS), a supplier of service oriented architecture (SOA) and middle-ware software. SY November option implied volatility of 29 is above its 26-week average of 26 according to Track Data, suggesting slightly larger risk.

Openwave Systems(NASDAQ:OPWV), a provider of software solutions for the communications and media industry, is recently down 7 cents to $4.93. OPWV will announce EPS on 10/25. Barron's reported on 5/27/07 SY might be interested in OPWV. OPWV over all option implied volatility of 65 is near its 26-week average according to Track Data, suggesting non-directional risk.

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

SAP AG (NYSE: SAP), which warned earlier in the month, made comments in yesterday's Q4 earnings conference call point to Larry Ellison's prognostication of SAP's demise being more and more correct.

Back in September, after reporting a blow-out quarter, Oracle Corporation's (NASDAQ: ORCL) Ellison said SAP is a number of years behind. Ellison went as far to say that if Oracle doesn't screw up, SAP is in big trouble.

Since Ellison made those comments, more and more evidence is coming out supporting his view. Since late 2006, SAP has reported poor results and IBM has reported weak results in businesses that work closely with SAP.

SAP said it is going to spend an extra 300 to 400 million euros over the next eight quarters for new software development. This further supports Ellison's claim of SAP beginning behind the curve.

Oracle's stock had a good year in 2006 with industry spending in a lull. But now it appears the lull is over and Oracle could be off to the races again.

Before the U.S. market closed yesterday, SAP AG (NYSE: SAP), the German-based software giant, reported a big miss with the stock dropping over $5 in the last hour of trading.

Oracle Corp's (NASDAQ: ORCL) revenue also came up soft in its last quarter, but not as soft as SAP's. Meaning: I'd stay with Oracle and avoid SAP. Oracle's numbers were better, but more importantly, it appears its strategy of bringing together high-end vertical software applications through acquisition is right on target.

In a September earnings conference call, Oracle CEO Larry Ellison all but said goodbye to SAP. Ellison said that SAP is at least two years behind Oracle and suggested that if Oracle did not make some big missteps, it would be tough for SAP to catch up. It appears from SAP's results, that Ellison's comments might have some truth to them.

Price weakness in Oracle's stock might be a good buying opportunity. While Oracle reported a weak quarter, it appears the economy and corporate spending are fine. That means spending should pick up for Oracle's products during the year.