Analyst upgrades:

• Merriman upgraded Sunpower (NASDAQ: SPWRA) two levels to Buy from Sell after transitioning coverage. The firm believes Sunpower is emerging from the current recession as the CleanTech leader and has a $38-$48 price range on shares.
• Citigroup upgraded Varian Medical (NYSE: VAR) to Buy from hold as it believes capex pressure and health care reform uncertainty is priced into shares, and demand will return as hospital budgets stabilize. Citi raised its target on shares to $45 from $36.
• FBR Capital upgraded Gap (NYSE: GPS) to Outperform from Market Perform following the Q2 results to reflect product improvement and ongoing inventory control. The firm raised its target on shares to $24 from $18.
• Schnitzer Steel (NASDAQ: SCHN) was upgraded to Neutral from Sell at UBS.
• UDR Inc. (NYSE: UDR) was upgraded to Market Perform from Underperform at Wells Fargo.
• The Buckle (NYSE: BKE) was upgraded to Buy from Hold at Roth Capital.

Results for the tech stocks in last week's preview were a mixed bag, some beats, some misses, some in line. By and large, expectations for tech companies reporting results this week remain high, though. Here's what analysts surveyed by Thomson Financial are anticipating in the way of earnings, as compared to the same period of the previous year.

• Solarfun Power Holdings Co. Ltd. (NASDAQ: SOLF): $1.48 EPS (+73.0%) on sales of $1.3 billion (+171.0%)
• Marvell Technology Group Ltd. (NASDAQ: MRVL): $0.21 EPS (+71.4%) on sales of $836.7 million (+27.4%)
• Solera Holdings Inc. (NYSE: SLH): $0.29 EPS (+51.7%) on sales of $137.0 million (+11.8%)
• Applied Signal Technology Inc. (NASDAQ: APSG): $0.14 EPS (+42.9%) on sales of $46.4 million (+17.4%)
• China Finance Online Co. Ltd. (NASDAQ: JRJC): $0.14 EPS (+42.6%) on sales of $13.3 million (+131.5%)
• OSI Systems Inc. (NASDAQ: OSIS): $0.38 EPS (+36.8%) on sales of $162.0 million (+6.0%)
• LaBarge Inc. (AMEX: LB): $0.27 EPS (+33.3%) on sales of $71.6 million (+10.4%)
• Esterline Technologies Corp. (NYSE: ESL): $0.69 EPS (+11.6%) on sales of $374.6 million (+14.8%)
• Dell Inc. (NASDAQ: DELL): $0.36 EPS (+11.1%) on sales of $15.9 billion (+7.8%)
• HEICO Corp. (NYSE: HEI): $0.46 EPS (+13.0%) on sales of $147.1 million (+10.5%)
• Daktronics Inc. (NASDAQ: DAKT): $0.17 EPS (flat) on sales of $141.5 million (+17.0%)
• Novell Inc. (NASDAQ: NOVL): $0.05 EPS (flat) on sales of $241.4 million (-0.7%)
• Omnivision Technologies Inc. (NASDAQ: OVTI): $0.29 EPS (-17.1%) on sales of $172.5 million (-0.4%)
• Sigma Designs Inc. (NASDAQ: SIGM): $0.39 EPS (-18.8%) on sales of $58.7 million (+37.9%)

MOST NOTEWORTHY: Solarfun Power, BioMarin Pharmaceutical and Genentech were today's noteworthy initiations:

• Jefferies initiated Solarfun Power (NASDAQ:SOLF) with a Buy rating and $18 target. The firm believes the one-third stake purchased by Good Energies and new management hires could generate operational momentum and that declining silicon costs may help margins.
  
• BioMarin Pharmaceutical (NASDAQ:BMRN) was started at Oppenheimer with a Perform rating. The firm recommends waiting for Street estimates on Kuvan sales to moderate and for positive pipeline signals before adding to positions.
  
• Genentech (NYSE:DNA) was initiated at Citigroup with a Buy rating and $91 target. The firm believes several studies could lead to robust growth and points out the company's Q2 results showed Avastin reaccelerating due to growth in breast cancer.

OTHER INITIATIONS:

• Goldman reinstated Staples (NASDAQ:SPLS) with a Neutral rating.
  
• Zebra Tech (NASDAQ:ZBRA) was initiated with a Hold rating at KeyBanc.
  
• Rodman & Renshaw assumed coverage of Corcept Therapeutics (NASDAQ:CORT) with an Outperform rating and $8 target.
  
• AuthenTec (NASDAQ:AUTH) was initiated at JP Morgan with an Overweight rating and at Canaccord Adams with a Hold rating and $10 target.

As I wrote a few weeks ago, traders and fans of low priced stocks should ignore fallen blue chips like Ford Motor Co (NYSE: F) and Sirius Satellite Radio (NASDAQ: SIRI) and focus more on smaller volatile stocks like China Precisions Steel Inc (NASDAQ: CPSL) and Solarfun Power Holdings (NASDAQ: SOLF). Not just because fallen blue chip stocks are all about guessing major business trends and the time lags involved with pricing those into their stocks -- good luck with that -- but because these lesser known plays offer much more predictability due to their speculative nature.

Earnings, profit margins, product potential is all well and good for long-term investors in higher-priced names, but here in the gutter of the stock market (also known as penny stock land), those variables are highly irrelevant to predicting hourly, daily and even weekly price swings. Down here it's all about self fulfilling prophecies, pumping and message board hype.

Take for example, Middlebrook Pharmaceuticals (NASDAQ: MBRK), mercilessly pumped by TheStreet.com's Adam Feuerstein for the past several months as a takeover candidate, as his sources indicate bidders in the $6 to $8 range. Now he might be right -- not that it's going to matter to the SEC -- and while he certainly can't compete with CNBC, in terms of effectiveness, his credibility and frequent teasing have predictably pumped this stock up a solid 20-30% so far.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
• Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
• BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
• Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
• Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
• Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
• Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
• Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
• Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
• Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
• NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
• Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
• Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
• Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

Suntech Power Holdings Co. (NYSE: STP), which saw its stock surge some 150% in 2007, didn't have such a good 2008 so far with its stock plunging about 44% year-to-date. But since setting a 52-week low of $28.19 on March 22, the stock has rebounded nicely, up over 55%. Roller coaster or what?!

Well, today, the maker of photovoltaic cells and modules said first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share, beating analysts estimates of 28 cents. Revenue reached $434.5 million. Gross margins also expanded nicely and Suntech reiterated revenue estimates for 2008.

Early in the morning, STP shares jumped over 7% in premarket trading in response to the report but have not kept this up. Shares are now trading at $45.73, down over 1%, probably declining with the rest of the sector following Goldman Sachs's downgrade of Solarfun (NASDAQ: SOLF) to Sell from Neutral. SOLF shares are down over 18% taking LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) down with it -- 5%, 8% and 13% respectively, to name but a few.

Solarfun Power (NASDAQ: SOLF) is recently down $4.81 to $21.66. Goldman Sachs says, "Premium valuation unwarranted; downgrade to Sell." SOLF manufactures PV cells and PV modules. SOLF June option implied volatility of 100 is below a level of 127 prior to Q1 EPS on May 21 and near its 26-week average of 99 according to Track Data.

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

Solarfun Power (NASDAQ: SOLF) is recently up $3.71 to $28.95 in pre-open trading.

SOLF reported Q1 EPS of 32 cents versus consensus estimates of 16 cents. SOLF reported Q1 net revenue of $171 million, an increase of 529% from the fourth quarter of 2007.

SOLF is a manufactures PV cells and PV modules.

SOLF June option implied volatility of 127 is above its 26-week average of 98 according to Track Data, suggesting larger price risk.

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

Solarfun Power (NASDAQ:SOLF) is up 19% on good earnings.

Adolor (NASDAQ:ADLR) is up 19% after getting approval for marketing of one of its drugs.

Red Robin Gourmet (NASDAQ:RRGB) is down almost 7% on poor earnings.

Carnival (NYSE:CCL) is off 3.5% without any visible news.

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

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

Forget about overwhelmingly random stock market noise and small daily percentage moves exemplified by the likes of all the most popular names such as Yahoo! Inc (Nasdaq: YHOO), Citigroup Inc (NYSE: C), Pfizer Inc (NYSE: PFE), Google Inc (Nasdaq: GOOG) and Apple Inc (Nasdaq: AAPL). Don't be fooled by the all-too-frequent daily commentary-those stocks are really only good for long-term investors and the few truly professional traders out there.

If you're neither, focus more on market inefficiencies because not only are they more predictable, but they're ideal for smaller investors and traders thanks to their illiquidity. Meaning the market offers up these high profit probability opportunities that the big boys can't and won't take advantage of-they're strictly for us little guys.

I'm talking about price moves created by the quirks of the finance industry itself-namely the media circus, stock promoters and hype that influence the great derided microcap market. For example, when a CNBC reporter inadvertently suckers amateurs by pumping a penny stock (good short selling opportunity as the stock is now down 50% in a month) or when a stock promoter is paid to hype a stock (another one down 50%+ in one month since).

Solarfun Power (NASDAQ: SOLF) is scheduled to report Q1 EPS on May 21.

SOLF, a manufacturer of PV cells and PV modules, closed at $22.84 Friday.

SOLF June option call implied volatility is at 123, puts are at 134; above its 26-week average of 96 according to Track Data, suggesting larger price risk.

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

LDK Solar Co. (NYSE: LDK) is one strange solar stock. Yesterday, on a day when other solar companies like Solarfun Power Holdings (NASDAQ: SOLF), Canadian Solar Inc (NASDAQ: CSIQ), First Solar Inc (NASDAQ: FSLR) and JA Solar Holdings (NASDAQ: JASO) were all strong and despite earnings coming in at the high end of expectations and guidance solidly ahead of estimates, their stock was down. Not only was it down, but it also tried rebounding, only to fail. Not good at all for the bull case.

Experience has taught me to respect the price action the day after earnings. So when I see LDK trying to break out of a now 5-month old range, pretty much between $30 and $40 -- yes it was up to $50 in January and $20 in March, but those are outliers -- this is a very bearish sign. It's so bearish that I suspect that unless solar plays really heat up again, this stock will need many more weeks or months to break $40, and even then, it's got a ton of resistance all over the place due to bitter buyers in at much higher prices who will be looking to cut their losses.

Solarfun Power (NASDAQ: SOLF) is scheduled to report Q1 EPS on May 21. SOLF over all option implied volatility of 75 is below its 26-week average of 94 according to Track Data, suggesting decreasing price risk.

Oil Services Holders (AMEX: OIH) volatility is low at 33 on $122 oil.

NASDAQ 100 (NASDAQ: QQQQ) overall implied volatility is at 24; the 26-week average is 28.

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

Last month at the Sundance Film Festival, I saw some great movies, partied it up a bit and schmoozed with celebrities. Perhaps it's the pseudo-celebrity status that came with my TV show or the $300,000+ personal loss I took on an investment I truly believed in, but I never get starstruck anymore. Not with celebrities and definitely not with companies. And as an investor, you can learn from this. I'll explain.

While at the festival, I bumped into "celebrity" Maria Bello, and my ability to have a casual conversation with her led to an interesting encounter highlighted by some flirting and several great pictures (see them all HERE).

Ms. Bello barely gave starstruck, incredibly crazed, fans the time of day; after all, nobody -- celebrity or not -- can really take anybody who's screaming and crying in awe of their presence very seriously. So, while it was a fun moment for me, I couldn't help but think how this related to the stock market.

Over the past few months, solar stocks have had more than their fair share of ups and downs. Last month, they were so volatile it seemed as if I was writing an article about another solar play every other day, introducing investors to the sector by casting the characters in a fictional movie to be called Solar's Eleven, encouraging buying on breakouts in this article, and warning investors to drop them as if they were poorly selling music artists in this article. (Yes, I go over the top sometimes, but it's all to help you better understand how the stock market works.)

I know buy and hold investors don't understand how I can change my mind so quickly about the same companies, but as you can tell from the charts of stocks like Evergreen Solar (NASDAQ: ESLR), Solarfun (NASDAQ: SOLF), DayStar Technologies (NASDAQ: DSTI), Akeena Solar (NASDAQ: AKNS), Canadian Solar (NASDAQ: CSIQ) and China Sunenergy (NASDAQ: CSUN), remaining nimble is key to profiting from this sector's volatility. In fact, only JA Solar (NASDAQ: JASO) and MEMC Electronic Materials (NYSE: WFR) have managed to hold near their highs.

So, what changed? Perception. While these companies all still have great potential, they are speculative and in bear markets, speculative stocks, especially those that don't continuously put out spectacular news, get crushed -- as shareholders in Apple (NASDAQ: AAPL), Baidu.com (NASDAQ: BIDU) and VMware (NYSE: VMW) have learned the hard way.