It seems that Verichip Corp (NASDAQ: CHIP) will have some fancy footwork to do in light of a recent study, which allegedly links subcutaneous data chip implants with aggressive malignant tumor growth as reported by Engadget. Have no fear though, I'm sure that Verichip will quickly release its own scientific report to fully discredit any assertion that chip implants aren't good for you. Currently, there are approximately 2,000 implant recipients in the United States. Never mind that the Japanese have yet to make the technology secure enough to protect a personal bus pass.

That's your future folks, the corporate world with the assistance of "well meaning" social engineers in government and your tax dollars, want to know where your pet is, where your car is, where you are and where every farm animal on the planet is at any given moment. Will it ever happen? Just you try to fight it.

With the alignment of Taser International Inc. (NASDAQ: TASR) and iRobot Corp. (NASDAQ: IRBT) to design and manufacture robotic mobile zapping devices for government agencies the world over, if you get too aggressive in your protests they'll just send a flying Roomba clone draped in a copy of the Patriot Act. Where's Issac Asimov when you need him?

Is VeriChip (NASDAQ: CHIP) ready for a massive breakout? I sure think so. Put aside for a moment the vast and potentially divisive implications of the technology and look at it in a strictly business sense. VeriChip offers technology that is absolutely bursting with potential. The chip, implanted just beneath the skin on a subject's arm, is dormant until scanned using a reader to extract the contained data. The chip costs about $200 to install, plus between $20 and $80 annually, depending on the amount of information on it.

Pets and farm animals are already being chipped as a means of loss prevention and for quick identification. Now volunteer Alzheimer's patients can elect to be chipped to facilitate location, identification and provision of medical information in the event that they wander off or are otherwise separated from guardians or loved ones. Patients with certain chronic life threatening diseases are being solicited as subjects for the device and there are rumors afloat in the UK that soon parents will be solicited to offer up their children to the technology. Yet to be approved by insurance companies as a covered procedure, the concept is still relatively new for use in people but based on the ongoing push by the company and its placement of chip readers in the hands of doctors, insurance company approval is strictly a matter of time.

MAJOR PAPERS:

• General Electric Company (NYSE: GE) is near a deal to sell its plastics division to Saudi Basic Industries for $11B, reported the Wall Street Journal (subscription required).
• Anheuser-Busch Companies Inc (NYSE: BUD) has stopped making its Spykes malt beverage amid poor sales and criticism that it was marketing to underage drinkers, reported the Wall Street Journal.

OTHER PAPERS:

• According to the Telegraph, citing Cadbury-Schweppes ADS (NYSE: CSG), two rival private-equity groups are preparing to bid for the U.S. beverages arm of the company, with bids in the GBP8B range.
• The Times of India reported that Citigroup Inc (NYSE: C) is putting its captive business process outsourcing arm, which could be worth between $1B-$1.5B, on the block.
• BusinessWeek's "Inside Wall Street" column focused on OfficeMax Incorporated (NYSE: OMX), Verichip Corporation (NASDAQ: CHIP) and Morton's Restaurant Group (NYSE: MRT):
  
• Office Max may be a target for Staples Inc (NASDAQ: SPLS) or Office Depot Inc (NYSE: ODP).
  
• Verichip, a maker of RFID chips, is starting to get attention on Wall Street.
  
• Morton's is being helped by boardroom business being conducted at the upscale steakhouse.

MOST NOTEWORTHY: Callaway Golf Co (ELY), Genentech, Inc (DNA), LSI Logic Corp (LSI) and Evergreen Solar, Inc (ELSR) were today's more notable initiations.

• Merriman initiated Callaway Golf Co (NYSE: ELY) with a Buy rating and believes new management could get the company back on track.
  

• Genentech (NYSE:DNA) was initiated at Prudential with a Neutral rating and $92 target. The firm believes the lack of a new product launch before 2010 is a concern for long-term growth.

• American Technology believes shares of LSI Logic (NYSE: LSI) are undervalued, initiating the company with a Buy rating and $13 target, given synergies and revenue opportunities from the merger with Agere Systems, Inc (AGR).

• Bank of America initiated Evergreen Solar Inc (NASDAQ: ESLR) with a Sell rating and $8 target to reflect the lack of visibility on its growth, which puts the company at a competitive disadvantage.

OTHER INITIATIONS:

• Salary.com, Inc (NASDAQ: SLRY) was initiated at Pacific Crest and Wachovia with an Outperform rating and at Thomas Weisel with an Overweight rating.

• Prudential started Gilead Sciences, Inc (NASDAQ: GILD) with an Overweight rating and $90 target.

• BMO initiated Smithfield Foods, Inc (NYSE: SFD) with with an Outperform rating and $36 target.

• Kaufman Brothers started VeriChip Corp (NASDAQ: CHIP) with a Buy rating, believing the company's growth position is compelling given its patented, FDA-approved microchip that can be implanted into humans for a variety of applications.

• Citigroup started Amgen, Inc (NASDAQ: AMGN) with a Hold rating and $64 target.

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