MOST NOTEWORTHY: Jabil Circuit, Aircastle, Genesis Lease and P.F. Chang's were today's noteworthy downgrades:

• JP Morgan downgraded shares of Jabil Circuit (NYSE: JBL) to Underweight from Overweight following the lower-than-expected guidance, as they believe the company is seeing end market weakness in most of its markets. Shares were also downgraded at Thomas Weisel to Market Weight from Overweight and at Credit Suisse to Neutral from Outperform following the disappointing guidance.
  
• JP Morgan also downgraded shares of Aircastle (NYSE: AYR) and Genesis Lease (GLS) to Neutral from Overweight to reflect the continued credit and equity market challenges faced by both companies.
  
• Friedman Billings downgraded shares of P.F. Chang's (NASDAQ: PFCB) to Underperform from Market Perform as they believe 2008 will be a challenging year for all casual dining restaurant companies and that the valuation is expensive at current levels.

OTHER DOWNGRADES:

• Goldman added Foundation Coal (NYSE: FCL) to its Conviction Sell List.
  
• Collins Stewart cut SiRF Technology (NASDAQ: SIRF) to Hold from Buy.
  
• Elan Corp (NYSE: ELN) was downgraded to Sell from Hold at Canaccord Adams.

Garmin Ltd. (NASDAQ: GRMN) stock is falling after GPS chipmaker SiRF Technology Holdings (NASADQ: SIRF) cut its first-quarter revenue forecast due to lower-than-expected demand in a weakened economic environment. This is bad news for GRMN, since it implies lower sales for it as well. GRMN is also under pressure from news that consumer confidence sank to a five-year low in March. 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 GRMN.

After hitting a one-year low of $52.18 in April, the stock hit a one-year high of $125.68 in October. This morning, GRMN opened at $59.49. So far today the stock has hit a low of $57.70 and a high of $59.97. As of 12:15, GRMN is trading at $59.78, down $2.60 (-4.2%). The chart for GRMN looks bearish but deteriorating, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider a May 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 an 8.7% return in two months as long as GRMN is below $75 at May expiration. Garmin would have to rise by more than 24% before we would start to lose money.

The earnings crunch continues, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) posted its biggest quarterly loss since its creation in 2006.
• Archer Daniels Midland Co. (NYSE: ADM) missed earnings estimates despite revenue up 50%.
• Biogen Idec Inc. (NASDAQ: BIIB) fourth-quarter profit soared on strong sales of Avonex and Tysabri.
• Chevron Corp. (NYSE: CVX) reported record profits due to surging oil prices.
• CNET Networks Inc. (NASDAQ: CNET) revenue rose but the forecast was not encouraging.
• Data Domain Inc. (NASDAQ: DDUP) third-quarter revenues spiked due to aggressive overseas expansion.
• Elizabeth Arden Inc. (NASDAQ: RDEN) benefitted from overseas growth, which offset weak holiday sales.
• GlaxoSmithKline (NYSE: GSK) warned that 2008 earnings would be affected by competition from generics.
• Harris Corp. (NYSE: HRS) beat estimates and raised its guidance.
• Micros Systems (NASDAQ: MCRS) beat expectations and offered guidance in line with estimates.
• News Corp. (NYSE: NWS) fell short of earnings expectations despite strength in MySpace and Fox News.
• PepsiCo Inc. (NYSE: PEP) results met estimates and it announced further share buybacks.
• Polo Ralph Lauren Corp. (NYSE: RL) beat estimates and raised its guidance.
• SiRF Technology Holdings Inc. (NASDAQ: SIRF) missed expectations due to a seasonal decline.
• Toll Brothers Inc. (NYSE: TOL) expects to report its seventh straight quarterly revenue decline.
• Toyota Motor Corp. (NYSE: TM) attributed solid earnings to growth in China, Russia, emerging markets.
• Wendy's International Inc. (NYSE: WEN) missed earnings estimates, despite beating revenue forecast.
• Western Union Co. (NYSE: WU) posted results just ahead of Wall Street estimates.
• Yum! Brands (NYSE: YUM) posted solid results on overseas growth and share buybacks.

Garmin Ltd. (NASDAQ: GRMN) stock is falling lower today on news that SiRF Technology (NASDAQ: SIRF), whose chips are used in GRMN's personal navigation devices, reported a fourth-quarter profit that missed analyst expectations. SIRF earned 8 cents a share excluding one-time items in the quarter, well below analyst estimates of 32 cents a share. SIRF blamed a seasonal decline in demand for the disappointing profit, which could be a bad sign for GRMN. 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 GRMN.

After hitting a one-year low of $50.01 in March, the stock hit a one-year high of $125.68 in October. This morning, GRMN opened at $65.96. So far today the stock has hit a low of $64.26 and a high of $66.23. As of 11:00, GRMN is trading at $65.00, down $4.66 (-6.7%). The chart for GRMN looks bearish but improving slightly, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

MOST NOTEWORTHY: Yahoo!, Goldman Sachs and Bankrate were today's noteworthy downgrades:

• Banc of America downgraded shares of Yahoo! (NASDAQ: YHOO) to Neutral from Buy as they believe that even if shareholders accept Microsoft's (NASDAQ: MSFT) offer, the regulatory hurdles are significant.
• Oppenheimer downgraded shares of Goldman Sachs (NYSE: GS) to Perform from Outperform as they believe the current valuation is not sustainable in a year when the company will probably deliver results that will not be substantially better than peers.
• Jefferies lowered its rating on Bankrate (NASDAQ: RATE) to Hold from Buy on valuation, as they believe the run-up in shares reflects expectations for strong Q4 results and guidance.

OTHER DOWNGRADES:

• SiRF Technology (NASDAQ: SIRF) was downgraded to Hold from Buy at Jefferies, to Market Weight from Overweight at Thomas Weisel and to Perform from Outperform at Oppenheimer.
• Goldman downgraded Posco (NYSE: PKX) to Sell from Neutral.
• Baird downgraded Associated Bancorp (NASDAQ: ASBC) to Neutral from Buy.

SiRF Tech (NASDAQ: SIRF) is recently down $6.41 to $9.86 in pre-open trading.

Soleil says: "Weak Q4 results & Q1 guidance; lowering to Hold; Best outcome a takeout." Bank of America says: "Material degradation to the earnings power implies further downside risk to the stock."

SIRF develops and markets semiconductor and software products designed to enable location-awareness.

SIRF overall option implied volatility of 73 is above its 26-week average of 59 according to Track Data, suggesting larger price movement.

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

Yum Brands (NYSE: YUM) reported essentially flat fourth-quarter earnings of 44 cents per shares, beating analyst expectations by two pennies. Robust sales in its China and international divisions countered rising costs and a sluggish U.S. performance. Yum raised its 2008 earnings forecast, but not enough for investors to be satisfied. YUM shares fell over 2.2% in premarket trading.

Boston Scientific (NYSE: BSX) swung to a $458 million fourth-quarter loss, as the $27 billion acquisition of Guidant Corp. nearly two years ago continued to erode its bottom line and obscure an overall sales gain. Net loss for the October-December period equaled 31 cents per share, down from a profit of $277 million, or 19 cents per share the year before. Sales, though rose 4% to $2.15 billion. Excluding charges, Boston Scientific posted a profit of $355 million, or 24 cents per share.

Two unconfirmed reports: Engadget reports that Apple Inc. (NADSAQ: AAPL) may come up with a 16 GB iPhone soon. Staff at AT&T (NYSE: T) and O2 saw the phone listed in the inventory -- wishful thinking or the natural step up?
Meanwhile, MacRumors reports that employees have spotted new MacBook Pros in Best Buy's (NYSE: BBY) inventory tracking system.

Standard Pacific (NYSE: SPF) is up 22% on better-than-expected earnings.

Illumina (NASDAQ: ILMN) is trading higher by 8% on improved guidance.

SiRF Technology (NASDAQ: SIRF) is off 42% on disappointing earnings.

VCA Antech (NASDAQ: WOOF) is down 22% on a weak earnings forecast.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Yahoo! (NASDAQ:YHOO) was cut to "neutral" from "buy" at Bank of America of American Securities according to MarketWatch.

Oppenheimer downgrades Goldman Sachs (NYSE:GS) to "perform" from "out perform" according to Briefing.com. The news service also reports that Jefferies downgraded SiRF Technology (NASDAQ:SIRF) to 'hold" from "buy".

Barnes & Noble (NYSE:BKS) was downgraded to "neutral" at JPMorgan according to 24/7 Wall St.

Douglas A. McIntyre

Of all the conveniences made possible by semiconductor technology, the ability to find out just where we are is among the most intriguing. There is an outfit in San Jose, California that allows widely-owned electronic devices to incorporate "Portable Location Awareness."

SiRF Technology Holdings (NASDAQ: SIRF) provides global positioning system chip sets with embedded GPS software, for use in mobile consumer products and commercial applications. The firm's devices allow manufacturers to add navigation, mapping and tracking capabilities to their mobile phones, automotive electronic systems, personal digital assistants, notebook computers, recreational GPS handhelds and digital cameras. Garmin (NASDAQ: GRMN) is a leading customer.

The company pleased the Street last week, when it reported Q3 EPS of 29 cents and revenues of $91.2 million. Analysts had been looking for 22 cents and $85.7 million. Management also guided Q4 EPS to 31-33 cents (26 cent consensus), Q4 revenues to $99-$102 million ($98.3M consensus) and FY07 revenues to $328-$331 million ($321.83M consensus). RBC Capital Markets, Deutsche Securities, Dougherty & Company, Lehman Brothers and Stanford Research all subsequently reiterated "buy" ratings on the issue. The news popped SIRF shares into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the shares with nine "strong buys," nine "buys" and four "holds." Analysts see a 30% average annual growth rate, through the next five years. The SIRF Price to Book ratio (3.23), Sales Growth rate (43.24%) and EPS Growth rate (222.22%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $16.20 and $34.15. A stop-loss of $23.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

MOST NOTEWORTHY: Gander Mountain, Lev Pharmaceuticals, Intermune, Aetna and Medco Health were today's noteworthy initiations:

• Nollenberger initiated shares of Gander Mountain Company (NASDAQ: GMTN) with a Sell rating and $5.00 target, and believes the company's goal of reaching profitability in 2007 could prove overly optimistic.
  
• Lev Pharmaceuticals (OTC: LEVP) was initiated with a Sector Outperformer rating and $3 target at CIBC, as the firm believes Cinryze will likely be approved in 1Q08 and they expect the company to have significant pricing leverage.
  
• JP Morgan resumed coverage of Intermune Inc (NASDAQ: ITMN) with an Overweight rating and expects shares to be driven by the company's pipeline in IPF and HCV.
  
• Aetna Incorporated (NYSE: AET) was initiated with an Outperform rating at Wachovia. The firm feels Aetna is positioned for better growth and higher quality earnings than its peers.
  
• William Blair started shares of Medco Health Solutions Inc (NYSE: MHS) with an Outperform rating, as they believe an aging population, rising health care costs, and an acceleration in new product introductions should increase demand for PBM services over the next five years.

OTHER INITIATIONS:

• ABN Amro started shares of Siliconware Precision Industries Company Ltd (NASDAQ: SPIL) and Advanced Semiconductor Engineering Inc (NYSE: ASX) with Buy ratings.
  
• Goldman initiated Silicon Image Inc (NASDAQ: SIMG) with a Sell rating and $4.50 target, and initiated Sigma Designs Inc (NASDAQ: SIGM) and SiRF Technology Holdings Inc (NASDAQ: SIRF) with Neutral ratings and a $43 target and $19 target, respectively.

MOST NOTEWORTHY: Wal-Mart Stores, Magna International, EchoStar Communications, Westell Technologies and SiRF Technology were today's noteworthy upgrades:

• Rochdale upgraded shares of Wal-Mart Stores (NYSE: WMT) to Buy from Hold citing improved outlook for margins and ROIC.
• CIBC World Markets resumed coverage and upgraded shares of Magna International (NYSE: MGA) to Sector Outperformer from Sector Performer as they believe higher multiples are warranted due to the company's improving earnings power and cash flow generation.
  
• Oppenheimer upgraded shares of EchoStar Communications (NASDAQ: DISH) to Buy from Neutral as they believe recent events add $4-$6 per share to their valuation analysis.
  
• Westell Technologies (NASDAQ: WSTL) was upgraded to Outperform from Neutral at Baird. The firm believes Westell is taking the right steps to improve its market position and financial performance.
  
• Credit Suisse upgraded SiRF Technology Holdings (NASDAQ: SIRF) to Outperform from Neutral, expecting the stock to benefit from a strong holiday season at electronic retailers.

OTHER UPGRADES:

• Goldman upgraded Campbell Soup Company (NYSE: CPB) to Neutral from Sell and Emerson Electric (NYSE: EMR) to Buy from Neutral.
  
• Keefe Bruyette upgraded Oriental Financial Group (NYSE: OFG) to Outperform from Market Perform.
  
• Prudential plc (NYSE: PUK) was raised to Outperform from Peer Perform.
  
• Wachovia upgraded Kindred Healthcare Inc (NYSE: KND) to Market Perform from Underperform.

MOST NOTEWORTHY: Assurant (AIZ), Famous Dave's (DAVE), Trinity Industries (TRN), Spartan Stores (SPTN) and SiRF Technology (SIRF) were today's notable initiations:

• Wachovia believes Assurant (NYSE: AIZ) is a unique opportunity to profit from mortgage market turmoil through its force-placed homeowners business, initiating shares with an Outperform rating.

• Nollenberger initiated Famous Dave's (NASDAQ: DAVE) with a Buy rating and expects to see accelerated earnings growth over the next few years driven by: continued rollout of it's new "Smokehouse" unit format, growth of the off-premise catering and to-go business, and ramp in new development.

• Keybanc is positive on Trinity Industries' (NYSE: TRN) diversified product portfolio, market-leading positions, and long-term end market fundamentals, starting shares with an Aggressive Buy rating.

• Banc of America initiated Spartan Stores (NASDAQ: SPTN) with a Buy and believes the company should benefit from the roll-up of independent retail assets and the move toward a customer-centric operating model.

• Banc of America believes rising competitive pressures in PNDs will lead to significant market share erosion in 2008 and started SiRF Technology (NASDAQ: SIRF) with a Neutral rating...

OTHER INTIATIONS:

• Wachovia initiated Dice Holdings (NYSE: DHX) with an Outperform rating.

• Stifel initiated Bancshares of Florida (NASDAQ: BOFL) and TIB Financial (NASDAQ: TIBB) with Hold ratings.

• Nollenberger initiated Morton's Restaurant (NYSE: MRT) with a Buy rating.

• Ceradyne (NASDAQ: CRDN) was initiated with a Hold rating at Morgan Joseph.

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

According to the German magazine Focus and reported on MacRumors.com, Apple Inc (NASDAQ: AAPL) is reportedly looking at developing a car navigation and sound systems. The device, which would combine navigation, entertainment and communication in a single unit, would be introduced in 2009. Apple is said to be working with Mercedes, which may hold exclusive rights for six months once released. It is unclear if Apple will rely on Google Inc's (NASDAQ: GOOG) Google Maps for help with navigation.

Sources speculate that an Apple's device would be similar to ones already on the market. Apple has long been known to rise above its competitors. Some say the upcoming iPhone may clean up, so it may not be a stretch to say that a navigational device has the potential to do the same.

Who would be affected by a navigational device from Apple? Here's the competition:

• Garmin Limited (NASDAQ: GRMN): Garmin is a worldwide provider of navigation and information devices, many of which are enabled by global positioning system technology. Last week, Garmin International announced the nuvi 200W and the nuvi 250W, two new widescreen GPS navigators. With a 4.3-inch color touch screen display and a high-sensitivity internal GPS antenna, the question is, can it trump whatever Apple does?

• Trimble Navigation Limited (NASDAQ: TRMB): Trimble provides advanced positioning product solutions, typically to commercial and government users. Last month it received an $8.8M purchase order from the U.S. Marine Corps and signed an agreement with Cox Communications. How formidable a competitor would Apple be?

• SiRF Technology Holdings Inc (NASDAQ: SiRF): SiRF is a supplier of GPS semiconductor solutions, offering a wide-range of GPS chip sets and other products for high-volume markets. Earlier this month, the company announced SiRFDiRect technology, what they touted as a "navigation breakthrough." Could Apple steal their thunder?

MOST NOTEWORTHY: ColdWater Creek Inc (CWTR), Celadon Group, Inc (CLDN), Berry Petroleum Co (BRY), SiRF Technology Holdings Inc (SIRF) were today's noteworthy initiations:

• Brean Murray started shares of Coldwater Creek (NASDAQ: CWTR) with a Buy rating and $25 target, expecting second-half upside from new merchandise this year.

• Keybanc is positive on Celadon's (NASDAQ: CLDN) disciplined approach to strategic acquisitions and leverage in its operating model, starting shares with a Buy rating and $20 target.

• CRT Capital believes Berry Petroleum (NYSE: BRY) has the ability to continue to deliver double digit percentage production/reserves growth and started shares with a Buy rating and $40 target.

• American Technology believes SiRF Technology Holdings (NASDAQ: SIRF) will continue to be a market leader in GPS chipsets and finds the company's wireless business undervalued, starting shares with a Buy rating and $26 target...

OTHER INITIATIONS:

• Javelin Pharmaceuticals Inc (AMEX: JAV) was initiated with an Outperform rating at Leerink Swann.

• UBS started Arris Group, Inc (NASDAQ: ARRS) with a Buy rating and $18 target.

• Publicis Groupe (NYSE: PUB) was started with a Buy rating at ING.

• Thomas Weisel initiated shares of Ambassadors International (NASDAQ: AMIE) with an Overweight rating and $41 target. Baird started

• Capella Education Co (NASDAQ: CPLA) with an Outperform rating and $46 target.

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