Stock Market Chumps..........9-29-06

Labopharm Inc. (DDSS)

Last Trade:	5.69
Trade Time:	2:22PM ET
Change:	1.62 (22.14%)

Labopharm Inc.'s chief executive said on Friday he was "pretty confident" the company's once-daily version of the pain-killer tramadol would receive U.S. approval despite a letter from the U.S. Food and Drug Administration that said some issues still must be resolved.

"We're pretty confident. You're not done until you're done," James Howard-Tripp, Labopharm president and CEO, told Reuters.

"We have got it approved in other jurisdictions. We believe it's a good product. We believe in our data package, so we would be pretty optimistic."

Labopharm shares dropped almost 25 percent on Friday after the company said it had received an approvable letter from the U.S. Food and Drug Administration for its version of the tramadol pain killer, but that the FDA said there are some unresolved issues.

The shares were down C$1.69, or 20.8 percent, at C$6.42 on the Toronto Stock Exchange, after dropping as low as C$6.09 earlier in the day. On Nasdaq, the shares were off $1.56, or 21.3 percent, at $5.75 after earlier falling as low as $5.42.

Howard-Tripp said the company plans to discuss the letter with the FDA "fairly rapidly" and believes it can address the issues raised without the need for additional data.

Howard-Tripp refused to say what issues were flagged.

"We are not trying to be deliberately obscure. We need to fully understand quite what it is they want, and until we fully understand, we obviously can't tell the marketplace what it is," he said.

"If we can't understand it, it doesn't make sense to try to put information out."

Analysts said the news was a setback for the company and raised doubts that it would meet its earlier targeted approval date.

"I think this is more of a setback in timing, but the problem is, we don't know for how long," said Laurence Terrisse-Rulleau, a biotechnology analyst at Blackmont Capital in Montreal.

"I'm still confident in the product. I'm still confident that they will get approved, I just don't know when."

Terrisse-Rulleau said it is unlikely that the company will meet the approval target of first quarter 2007. She said it will now "most likely" be in the third quarter of 2007.

"The problem is it depends if the FDA is going to take 50 days or six months," she said. "And it is going to take weeks before we find out."

Labopharm's new drug application for tramadol was submitted to the FDA in November 2005.

Once-daily tramadol, Labopharm's key product, has received regulatory approval in 22 European countries and commercial launch of the product across Europe is under way.

Corcept Therapeutics Inc. (CORT)

Last Trade:	0.91
Trade Time:	2:25PM ET
Change:	0.40 (30.53%)

Corcept Therapeutics Shares Hit All-Time Low After 2nd Corlux Clinical Trial Fails

Shares of Corcept Therapeutics Inc. took another hit Friday and sunk to an all-time low after the drug developer said the second of three clinical trials for its Corlux depression drug had failed.

Corcept shares dropped 54 cents, or 41.2 percent, to 77 cents in midday trading on the Nasdaq at more than double their average volume. The stock, which went public at $12 in April 2004, hit a new all-time low of 75 cents earlier in the session.

On Aug. 25, the stock shed 56 percent of its value in one day, trading at hundreds of times its average volume, to close at $1.54 on the Nasdaq after the company announced that the first of three Corlux trials had failed.

In the second study, researchers found no significant difference between Psychotic Major Depression patients who were given Corlux or a placebo and then assessed using a psychiatric rating scale.

As in the first study, the company noted there was an unusually high placebo response rate in the second study. After 56 days, about 95 percent of those taking Corlux or a placebo had responded by improving their scores on the rating scale by 50 percent, the study's primary endpoint.

The company said it has about $17.5 million in cash and securities, enough to complete the third clinical trial. Results of the third study are expected early next year.

Stock Market Champs..........9-28-06

Align Technology Inc. (ALGN)

Last Trade:	11.48
Trade Time:	3:30PM ET
Change:	3.68 (47.18%)

Align Technology Shares Hit New 52-Week High After Settlement of Invisible Braces Dispute

- Shares of Align Technology Inc. surged to a new 52-week high after the maker of Invisalign invisible dental braces settled a patent dispute with competitor OrthoClear Inc., and gained an upgrade from at least one analyst.

Align shares jumped $3.45, or 44 percent, to $11.25 in afternoon trading on the Nasdaq at more than 45 times their average trading volume. Earlier in the session, the stock hit a new 52-week high of $13.34. Shares have traded between $5.62 and $9.75 over the past 52 weeks.

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The company announced it agreed to pay OrthoClear $10 million upfront, and another $10 million if OrthoClear shareholders approve the settlement in 30 days, for its invisible dental braces patents. The agreement also requires OrthoClear to exit the invisible braces market immediately.

As a result, JPMorgan Securities analyst Taylor Harris upgraded Align to "Neutral" from "Underweight," and called the price to get rid of OrthoClear "quite low." The analyst said the settlement completely changed the dynamic of the invisible dental braces market, and would add close to $30 million to Align's 2007 revenue. The company last reported annual sales of about $207 million.

Deutsche Bank Securities analyst Tao Levy reiterated a "Buy" rating on the company, and said that OrthoClear's withdrawal from the market will bring Align more than 400 doctors who had not been using Invisalign but have already built substantial practices around the braces.

The Food and Drug Administration cleared Invisalign braces in 1998. The devices are clear polymer liners that slowly straighten teeth and are replaced every few weeks by another set.

In February 2005, Align sued OrthoClear and several former employees alleging the violation of confidentiality agreements, and OrthoClear sued Align for more than $100 million in damages, alleging breach of contract, intentional interference with prospective economic advantage, and unfair competition.

Resources Connection Inc. (RECN)

Last Trade:	27.08
Trade Time:	3:33PM ET
Change:	3.33 (14.02%)

- Shares of management staffing and staffing services companies rose Thursday, pulled along by Resources Connection Inc., a day after the company's quarterly results and outlook encouraged investors.

Shares of Resources Connection added $3.20, or 13 percent, to $26.95 in midday trading on the Nasdaq. The company on Wednesday said a decline in fiscal first-quarter profit was due to high stock-based compensation costs.

Bear Stearns analyst Andrew Steinerman in a client note said he expects "solid, though not robust," revenue trends and growth ahead, based on the company's results and outlook. He said investors probably have similar expectations stemming from the quarterly report.

Resources Connection in a regulatory filing said it expects revenue of about $175 million for its second quarter, up from $158.1 million in sales booked a year ago. Wall Street analysts currently expect the company to post slightly higher revenue of $177 million.

Steinerman sees the stock pulling along the sector. He noted Resources Connection gave no indication that industry demand was slowing.

In a separate note, the analyst wrote that improving trends at Resources Connection bodes well for Robert Half International Inc., which provides staffing and other services, as well as other finance and accounting services companies.

"Encouragingly, Resources' management did not make any macro-related caveats regarding business trends and, in fact, indicated seeing no slowdown in spending among their clients," the analyst noted.

Stock Market Chumps..........9-28-06

TVIA Inc. (TVIA)

Last Trade:	1.50
Trade Time:	9:59AM ET
Change:	2.00 (57.14%)

Tvia Inc., a maker of digital display processors used in flat-panel televisions, said Thursday it expects to report a sharp drop in fiscal second-quarter revenue as TV manufacturers cut production because of supply problems with liquid crystal display panels.

Tvia expects revenue in the quarter ending Sept. 30 between $300,000 and $400,000, down at least 92 percent from last year's $5.1 million.

The company expects LCD panel availability to improve in the coming period, which it anticipates will increase demand for its products

But Tvia also said it is "continuing to experience competitive pressure resulting from price decreases by other processor manufacturers."

The company's shares were sharply lower in early trading on Nasdaq, falling $2.11, or 60.3 percent, to $1.39.

Novatel Wireless Inc. (NVTL)

Last Trade:	9.3799
Trade Time:	10:00AM ET
Change:	2.3301 (19.90%)

Shares of modem manufacturers Novatel Wireless Inc. and Sierra Wireless Inc. fell in pre-market trading as investors considered increased competition and lower prices for products giving computers network connections.

Novatel dropped $1.66, or 14 percent, to $10.05, while Sierra Wireless fell $2.47, or 20 percent, to $10.13 in pre-market trading.

Analysts agreed the news wouldn't have much effect on the modem makers' business until Intel begins selling the embedded module to vendors in late 2007 as part of its next-generation Intel Centrino Duo mobile technology platform.

Analysts were mixed on what would happen after that. CIBC World Markets analyst Ittai Kidron said Novatel and Sierra will in the meantime jump "a step ahead" in its relationships with vendors and suppliers, and by the time the new module is introduced Nokia be playing catch-up.

But Cowen analyst Matthew Hoffman said the partnership will limit Novatel's market opportunities. He downgraded Novatel to "Neutral" from "Outperform." ThinkEquity analyst Mike Burton also downgraded Novatel, to "Accumulate" from "Buy" because of increased competition.

Stock Market Chumps..........9-27-06

Red Hat Inc. (RHAT)

Last Trade:	20.35
Trade Time:	11:35AM ET
Change:	5.97 (22.69%)

Red Hat Inc., which provides software, was downgraded by two brokerages on Wednesday after the company lowered its second-quarter earnings forecast and full-year cash flow on higher costs related to the JBoss merger.

In a research note, Jefferies & Co. lowered its rating to "hold" from "buy" and cut its price target on the stock to $24 from $34.

Separately, Prudential Equity Group lowered its rating on the company to "neutral weight" from "overweight" and cut the price target to $25 from $35.

Both brokerages said the company faces higher costs to integrate software maker JBoss, which Red Hat purchased in June.

Prudential said it is concerned that ongoing execution issues could cause Red Hat to miss outlook.

Shares of the company closed at $26.32 Tuesday on the Nasdaq.

Bearingpoint Inc. (BE)

Last Trade:	7.72
Trade Time:	11:32AM ET
Change:	0.76 (8.96%)

Shares of BearingPoint Inc. dropped Wednesday in premarket trading, a day after the management and systems consulting firm said it will have to delay a regulatory filing after a court said it defaulted on debt.

Shares declined 14 percent to $7.30 in premarket trading Wednesday after closing at $8.48 a day earlier on the New York Stock Exchange. The stock has traded in a 52-week range of $6.54 to $9.59 and is down about 7 percent from the beginning of the year to its Tuesday close.

JP Morgan Securities Inc. analyst Tien-tsin Huang reiterated a "Neutral" rating and anticipates shares will recover from an after-hours plunge Tuesday that at one point slipped 35 percent to $5.48. However, the analyst still expects shares to trade lower, in the $7 to $8 range.

McLean, Va.-based BearingPoint on Tuesday said it will delay filing its fiscal 2005 earnings report after a court found it defaulted on debentures due 2024 by failing to file certain Securities and Exchange Commission reports on time. A debenture is a long term corporate debt instrument.

The company also said an independent accountant might indicate uncertainty about BearingPoint's ability to continue operations as a going concern, relative to its 2005 reports.

The news caused two analysts to cut their ratings on the company, while other analysts said the bad news could be tempered with good business trends.

Stifel Nicolaus analyst William R. Loomis and Needham & Co. analyst Jonathan Maietta in separate client notes downgraded the company to "Hold" from "Buy" to reflect uncertainty in the stock's ability to perform well due to the ruling.

Yet the analysts, along with others, noted that BearingPoint indicated business fundamentals remain strong.

"Consistent with other industry data points, the demand environment continues to be robust," wrote JP Morgan's Huang. "In our view, this is critical for BE - if the environment weakens, we believe BE's turnaround could be put in jeopardy."

Citigroup analyst Patrick Burton reiterated a "Buy" rating for BearingPoint.

"We expect the latest developments may cause weakness near term in BE, but we remain patient with the turnaround," wrote Burton. "Our view is that the delay is due to technical factors that have little to do with fundamental expectations for 2007 and beyond."

A New York State court found the company in default on its 2.75 percent series B convertible subordinated debentures. The company gave preliminary 2005 results and also said higher-than-expected accounting and finance charges will cause 2006 operating income to fall significantly below a prior guidance.

Stock Market Chumps..........9-26-06

Merix Corp. (MERX)

Last Trade:	10.29
Trade Time:	4:00PM ET
Change:	3.76 (26.76%)

Shares of Merix Corp. tumbled Tuesday, after the maker of printed circuit boards lowered its earnings outlook for the fiscal first quarter.

In making the revision, the Forest Grove, Ore.-based company cited higher raw material costs and outsourcing and pension costs in Asia.

Shares of Merix fell $3.51, or 25 percent, to $10.54 in late trading on the Nasdaq Stock Market. Tuesday's weakest level, on heavy volume, was $10.34. On a 52-week basis, there was a low of $5.10 last Sept. 28 and a high of $14.39 on Monday.

After market close Monday, Merix said it expects first quarter, per-share earnings of 15 cents to 17 cents, compared with an earlier forecast of 25 cents to 30 cents.

Excluding items, Merix expects per-share earnings for the quarter ended Aug. 26 of 19 cents to 21 cents. That's down from an earlier forecast of 31 cents to 35 cents.

Analysts surveyed by Thomson Financial had forecast, on average, first-quarter earnings of 31 cents a share. Such estimates typically exclude items.

"We do owe our investors bottom-line profitability enhancement with the revenue growth," said Merix Treasurer Lynda Ramsey, who called the market's reaction to the news disappointing. "We have some work to do to get our margins back in line. Overall, it's still a very healthy environment."

But analyst Kevin Kessel of Bear Stearns said in a research report that he expects printed circuit board makers to struggle with passing through higher costs.

The company has said its supplier of copper laminate, which increased prices in July, plans to raise them again in October.

Kessel cut his rating on the stock to "underperform" from "peer perform" on Tuesday. He doesn't have a position in the stock. Bear Stearns doesn't have an investment-banking relationship with Merix.

While Merix and competitor TTM Technologies Inc. are facing higher costs, "the issues with Merix are more company-specific," analyst Shawn Harrison of Longbow Research said. Harrison doesn't own shares of Merix. Longbow doesn't have an investment-banking relationship with the company.

"TTMI has no Asian operations," Harrison said. "Merix generates approximately half their revenue from Asia, where raw materials are a significant portion of their cost of goods sold."

Merix is talking with customers about raising prices for the first time, Harrison said. The company's current contracts in the automotive sector, which account for 16 percent of revenue, don't include escalator clauses for raw material costs, he added.

"Once these issues work out, things will begin to normalize," Harrison said. "That will take at least two quarters for Merix."

Ramsey said that, while the current automotive contracts don't include escalators, the company will be including those in this fall's negotiations.

Bear Stearns analyst Kessel cited "moderating demand" in cutting his rating on the stock.

Ramsey said Merix hadn't seen any slowdown in orders, but wouldn't speculate on whether one might develop.

"The only thing we can refer to is what we see in our own factories," she said. "We have seen very slight softening in Asia, but our North American demand is still extremely strong."

CytRx Corp. (CYTR)

Last Trade:	1.3500
Trade Time:	4:00PM ET
Change:	0.4800 (26.23%)

Biopharmaceutical company CytRx Corp. said Monday a mid-stage study of its Lou Gehrig's disease treatment candidate showed the drug was well tolerated, and it plans to continue development.

However, shares of the company tumbled because the drug had no statistical significance on disease progression.

The goal of the Phase IIa clinical trial was to study the safety of arimoclomol in treating the disease, also called amyotrophic lateral sclerosis. The 10-center, double-blind and placebo-controlled study dealt with three dose levels given three times daily for 12 weeks and involved 84 patients. But the study showed there was no statistical significance in treating the disease.

The company said it expected that result, based on the study design's scale and scope, which was focused on safety and tolerability, not efficacy.

Shares of CytRX fell 48 cents, or 26.2 percent, to close at $1.35 as trading volume surged to nearly seven times its three-month average. The stock has traded between 85 cents and $2.30 over the last 52 weeks.

No statistically significant increases in adverse events were reported as compared with placebo. CytRx said it will continue on with a Phase IIb clinical trial, which will focus on the drug's effectiveness in treating the disease. It hopes to start that study in the first half of 2007.

"The results of the Phase IIa trial are encouraging for the future development of arimoclomol in that even the highest dose was shown to be safe and well tolerated in a patient population that has virtually no treatment options," said Jack Barber, senior vice president of drug development, in a statement.

Secondary endpoints, or measurements, of the study, also showed the drug was well absorbed by the body, specifically, by passing the blood-brain barrier. Preliminary analyses shows the drug entered the cerebral spinal fluid effectively, marking the breaking of an important barrier for drugs intended to treat neurodegenerative diseases.

The Phase IIb clinical trial, which is still in a planning stage, will likely involve about 390 patients at between 30 and 35 clinical sites.

Advanced Medical Optics Inc. (EYE)

Last Trade:	38.75
Trade Time:	4:00PM ET
Change:	7.55 (16.31%)

Advanced Medical Optics Inc. plunged Tuesday, a day after the maker of eye care and eye surgery products slashed its 2006 outlook, prompting analysts to offer contradictory investment advice.

The company's products include Complete brand lens solutions and cataract, glaucoma and laser eye surgery devices and services.

Shares of the Santa Ana, Calif.-based company lost $5.72, or 12 percent, to $40.58 in midday trading with 12 times its average daily trading volume. The stock has traded in a 52-week range of $32.04 to $52.90 and is up about 11 percent from the beginning of the year.

Prudential Equity Group analyst Larry Biegelsen downgraded the company to "Neutral Weight" from "Overweight," and said he expects demand for artificial lens implants and laser correction volume to continue to slow. The implant products enjoy very high margins of about 95 percent, the analyst wrote.

But Merrill Lynch analyst Lee E. Brown took an opposite view, and advised investors to buy in while shares are down. He reiterated a "Buy" rating but reduced his target price to $54 from $57.

The company is repositioning itself for future growth that could boost returns in the long-term, the analyst said.

"Thus, despite some unexpected disappointments along the way, we continue to believe Advanced Medical will reward investors who are willing to stay the course," wrote Brown.

The company on Monday said it now expects adjusted profit for 2006 at $1.90 to $1.95 per share on revenue between $1.01 billion to $1.02 billion, while analysts polled by Thomson Financial expect profit of $2.10 per share on revenue of $1.03 billion.

Advanced Medical forecast 2007 earnings per share of about $2.60 on an anticipated $1.1 billion in revenue, while analysts predict profit of $2.69 per share on revenue of $1.11 billion.

The company blamed a sluggish shift in its sales mix to premium-priced products, softer-than-expected domestic laser vision correction volumes, government reimbursement pressures overseas and recent strikes by European surgeons who use Advanced Medical's cataract products.

Stock Market Champs..........9-26-06

SIGA Technologies Inc. (SIGA)

Last Trade:	2.0899
Trade Time:	10:55AM ET
Change:	1.0300 (97.18%

SIGA rose more than 80% after its merger partner PharmAthene received a contract valued at up to $213 million from the Defense Department Army Space and Missile Command. The contract covers the advanced development of the company's chemical nerve agent prophylaxis, Protexia. Shares of Siga climbed 85 cents to $1.91.

EpiCept Corporation (EPCT)

Last Trade:	2.18
Trade Time:	10:57AM ET
Change:	0.48 (28.02%)

EPCT says that Myriad Genetics Inc has reported positive clinical results for Azixa, a compound discovered by EpiCept and licensed to Myriad. Based on the results, Myriad intends to initiate Phase II clinical trials, triggering a milestone payment to EpiCept.

Stock Market Champs..........9-25-06

Acorda Therapeutics, Inc. (ACOR)

Last Trade:	7.50
Trade Time:	3:07PM ET
Change:	5.28 (237.84%)

Acorda Therapeutics Shares Triple As Multiple Sclerosis Drug Succeeds in FDA Recommended Study

Shares of Acorda Therapeutics Inc. more than tripled Monday, hitting a new 52-week high, after the biotech drug developer announced the success of a late-stage clinical trial to test its treatment to improve the walking ability of multiple sclerosis patients.

Acorda shares rose $5.25 to $7.47 in midday trading on the Nasdaq. Earlier in the session, shares went as high as $7.75. They hit an all-time low of $2.20 on Thursday after sliding from a previous high of $7.48 on their first day of trading on Feb. 10.

The company released results from its Phase III study of Fampridine-SR showing that nearly 35 percent of patients taking the drug improved their walking speed compared with just over 8 percent of patients taking a placebo. Of those patients who responded, those given Fampridine rated significantly better on a walking scale than those given a placebo. Improvements lasted over the 14-week treatment period.

The three criteria were those outlined by the Food and Drug Administration's Special Protocol Assessment, a study design that is most likely to yield the best results. The company said it plans to meet with the agency soon to discuss how to advance the drug closer to a possible approval.

The results represent one of the two positive trials the company will need for FDA approval. The drug has Orphan Drug status from the agency for improving walking in multiple sclerosis patients, meaning the company will have seven years of marketing exclusivity for that use should it be approved.

Multiple sclerosis is an incurable disease which causes the body's immune system to destroy the insulation of nerve fibers. The company said lab studies have shown that Fampridine can improve communication between damaged nerves.

In a research note, Rodman & Renshaw analyst Elemer Piros maintained his "Outperform" rating on the company with a target price of $14.

GPC Biotech AG (GPCB)

Last Trade:	18.45
Trade Time:	3:02PM ET
Change:	4.45 (31.79%)

Pharmion Corp. (PHRM)

Last Trade:	21.70
Trade Time:	3:08PM ET
Change:	3.69 (20.49%)

Pharmion, GPC Biotech Shares Soar
Pharmion, GPC Biotech and Spectrum Shares Gain on Positive Late-Stage Satraplatin Study

Shares of several partnered biotechnology companies surged Monday after a prospective prostate cancer treatment lowered progression rates in a late-stage study.

Pharmion Corp. gained $3.92, or 21.8 percent, to reach $21.93 in afternoon trading on the Nasdaq, as trading volume rose more than sixfold from its average. Shares have traded between $14.76 and $23.34 over the last 52 weeks.

Meanwhile, American depositary shares of Germany-based GPC Biotech AG jumped $4.46, or 31.8 percent, to $18.46 on the Nasdaq, as trading volume surged to more than elevenfold. Early in the day, the stock climbed to a new 52-week high of $19.45, replacing the previous high of $18.59 set on Feb. 27.

The study showed that prostate cancer patients receiving satraplatin with prednisone had a 40 percent lower risk of disease progression, compared with those given placebo with prednisone. Boulder, Colo.-based Pharmion said it plans on filing a marketing application for the drug in Europe during the first half of 2007 while GPC Biotech plans to file with the Food and Drug Administration by the end of the year.

The news prompted Lazard Capital Markets analyst Matthew S. Osborne to upgrade Pharmion's stock to "Buy" from "Hold" with a $28 price target.

"We expect satraplatin to contribute meaningfully to Pharmion revenues," he said in a note to investors.

The assessment, which factors in competition, said the modest penetration of the European market could generate sales of $112 million by 2011 for the drug's current indication as a second-line treatment. Possible expansion to other uses leaves room for potential upside.

As part of the collaboration, Pharmion will pay GPC Biotech 26 percent to 30 percent royalties on sales of the drug below $500 million.

Osborne also reaffirmed his "Buy" position with a $10 price target on Spectrum Pharmaceuticals. The Irvine, Calif.-based company said it could see up to $20 million in milestone payments stemming from U.S. and European approval. It is partnered with GPC Biotech.

The stock rose $1.32, or 37.8 percent, to $4.81, as trading volume soared more than 32 times its average. Shares have traded between $3.36 and $5.69 over the last 52 weeks.

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Warrior Energy Service Corp. (WARR)

Last Trade:	24.20
Trade Time:	3:10PM ET
Change:	9.86 (68.76%)

Superior Energy Services to Buy Warrior Energy in $358 Million Deal

Oil field services provider Superior Energy Services Inc. said Monday that it agreed to acquire Warrior Energy Services Corp. in a cash and stock deal valued at about $358 million.

Under the deal, the Harvey, La.-based company will pay about $175 million in cash and 5.3 million shares of common stock for Warrior, a natural gas and oil well services company.

Warrior will receive $14.50 in cash and 0.452 shares of Superior common stock -- which works out to roughly $26.33 -- a nearly 84 percent premium to Warrior's closing price of $14.34 on Friday.

Shares of Warrior soared on the news, climbing $9.74, or 67.9 percent, to $24.08 in afternoon trading on the Nasdaq, as volume surged more than 40 above times its average.

Superior estimates the acquisition, which will expand its presence beyond the Gulf of Mexico, will boost its 2007 earnings per share. The transaction, unanimously approved by the Warrior Energy board of directors, is expected to close late in the fourth quarter of 2006.

In connection with the deal, Superior has secured a commitment for $200 million in long-term debt.

"This accretive acquisition represents an important step in our continuing strategy of significantly diversifying our services footprint beyond the Gulf of Mexico," said Terence Hall, Superior's chairman and chief executive.

"It will appreciably strengthen our foothold in the domestic onshore market, bringing with it a seasoned management team with extensive onshore oilfield services experience and over 570 skilled employees," he added.

Shares of Superior fell $2.96, or 11.3 percent, to $23.22 in afternoon trading on the New York Stock Exchange.

Maritrans Inc. (TUG)

Last Trade:	36.63
Trade Time:	3:06PM ET
Change:	11.13 (43.65%)

Overseas Shipholding Group Inc. has agreed to acquire crude oil and petroleum shipper Maritrans Inc. in a cash transaction valued at about $455 million, the companies said jointly on Monday.

The value of the deal was based on OSG acquiring Maritrans for $37.50 per share, for the 12 million shares outstanding, plus the assumption of debt less cash as of June 30. OSG plans to use available cash and credit facilities to finance it.

Shares of Maritrans jumped 43.8 percent to $36.67 on Monday from Friday's close at $25.50 on the New York Stock Exchange. OSG shares fell $1.76, or 2.9 percent, to $58.99, on the NYSE.

Both boards unanimously approved the deal, which is expected to be completed by the end of 2006 and add immediately to OSG's earnings, they said. The deal requires Maritrans stockholder and regulatory approvals.

The acquisition will expand and diversify OSG, adding to operations in the U.S. Gulf coast, Florida and East Coast. Maritrans has 11 articulated tug barges, five product carriers and three large articulated tug barges under construction.

"The acquisition provides a strong strategic fit for OSG and increases its investment in the U.S. market which remains structurally tight and therefore highly attractive," Banc of America Securities analyst Philippe Lanier said in a note.

The acquisition may seem expensive relative to Maritrans' recent stock performance, but includes the three tug barges under construction, which reportedly can cost more than $75 million each, Lanier said.

Lanier said OSG's balance sheet supports the acquisition and it should not impede the company's share buyback program.

OSG had 2005 net income of $464.8 million with time charter equivalent revenue of $961.7 million. Maritrans' 2005 net income was $19.9 million with revenue of $180.7 million.

Stock Market Chumps..........9-25-06

Microsemi Corp. (MSCC)

ast Trade:	19.55
Trade Time:	1:27PM ET
Change:	3.22 (14.14%)

Microsemi Shares Fall Sharply on 4Q Warnings, Needham Cuts Rating on Stock

Shares of power management semiconductor maker Microsemi Corp. plunged in Monday morning trading, setting a new year low, after the company lowered its fourth-quarter outlook, prompting a downgrade at Needham & Co.

On Friday, Microsemi said it expects fourth-quarter results to fall short of previous expectations due to "weakness in the overall market."

Shares of Microsemi, which have traded between $21.20 and $31.85 over the last year, were down $2.90, or 12.7 percent, at $19.87 in morning trading on the Nasdaq. Earlier in the session shares set a new 52-week low of $19.73.

The company now forecasts fourth-quarter earnings of 25 cents to 27 cents per share, excluding one-time charges, and projects sales will be roughly flat to up 2 percent sequentially. In July, the company said it expected earnings of 29 cents to 31 cents per share for the fourth quarter on a 7 percent to 9 percent sequential increase in sales.

Needham & Co. analyst N. Quinn Bolton cut his rating on the stock to "Buy" from "Strong Buy," and lowered his price target to $25 from $32. Still, Bolton thinks the company's future prospects appear sound.

"The company's longer-term revenue growth and operating margin expansion opportunities still remain intact in our opinion," Bolton wrote in a note to clients. "We encourage investors to accumulate positions in the low-$20 range."

Microsemi's announcement comes on the heels of similar warnings from other integrated circuit manufacturers, including Maxim Integrated Products Inc., Microchip Technology Inc., Silicon Laboratories Inc. and Advanced Analogic Technologies Inc.

Revlon Inc. (REV)

Last Trade:	1.07
Trade Time:	1:23PM ET
Change:	0.17 (13.70%)

Revlon Cuts 250 Jobs, Dumps Cosmetics Line in Restructuring Plan

Revlon Inc. is cutting 250 jobs, or 8 percent of its work force, and is canceling its recently launched Vital Radiance cosmetics line aimed at older women in a restructuring plan aimed at making the company profitable.

The steps announced Monday come a week after Revlon, which is controlled by financier Ron Perelman, ousted its president and chief executive officer, Jack Stahl, and replaced him with the company's CFO, David L. Kennedy.

Revlon also announced it expects losses in the third quarter and for the year, causing shares to drop more than 16 percent, or 20 cents, to $1.04 on the New York Stock Exchange. Shares are trading at the low end of its 52-week range of 76 cents to $3.95.

"We are moving forward with a clear focus on leveraging the tremendous equity of our established brands -- particularly Revlon and without the burden of the operating loss we anticipated from Vital Radiance in 2007," said Kennedy in a statement.

Revlon, which has been struggling with debt and increased competition from rivals L'Oreal SA's Maybelline and P&G's Cover Girl, had been counting on Vital Radiance to help reverse its fortunes. But results for the brand, which landed on retailer's shelves early this year, were disappointing, causing merchants this spring to cut back on space allowed for them.

In a conference call with investors, Kennedy said that Revlon will increase its focus on its Revlon and Almay businesses to drive sales.

The restructuring, which marks the second cost-cutting move in seven months, includes eliminating certain senior executive positions and consolidating facilities. The company's brand marketing and creative activities in the United States will be consolidated, reducing layers of management.

As part of the changes, the roles of executive vice president and chief marketing officer, held by Stephanie Klein Peponis, and chief creative officer, held by Rodelle Udell, will be eliminated. The brand marketing leadership will report directly to Kennedy.

Furthermore, the role of executive vice president and president of international, currently held by Tom McGuire, is also being eliminated. The executives leading the company's three geographic international regions will report directly to Kennedy.

For the third quarter, Revlon said it expects a loss of $135 million and net sales in the range of $280 million to $290 million. For the full year, operating loss is expected to be approximately $45 million to $55 million, reflecting the impact of restructuring actions and the costs of discontinuing the Vital Radiance brand.

For the year, the company expects net sales of approximately $1.3 billion, including the impact of Vital Radiance returns and allowances provisions in the second and third quarters of 2006.

In February, Revlon announced it planned to eliminate 165 jobs -- or just under 2.5 percent of its global work force -- in an effort to reduce costs.

Chiquita Brands International Inc. (CQB)

Last Trade:	13.80
Trade Time:	1:24PM ET
Change:	1.93 (12.27%)

Chiquita Suspends Dividend, Says Spinach Concern Hurting Profit

Banana producer Chiquita Brands International Inc. said Monday that it is suspending its dividend and warned that third-quarter financial results will be hurt by concerns over spinach safety, lower banana prices and banana import rules into the EU.

The company also said that it also is looking at possibly selling its global shipping operations that are used primarily to move fruit from Latin America to North America and Europe.

Shares of Chiquita fell $1.84, or nearly 12 percent, to $13.89 in trading Monday on the New York Stock Exchange. The stock price has ranged between $12.65 and $28.13 in the past year.

Chiquita said the concern over tainted spinach tied to the nation's E. coli outbreak has led to unexpected costs and lower sales for the company's Fresh Express packaged produce business.

The continued negative effects from changes in rules regarding banana imports into the European Union, markedly lower banana prices in core European and trading markets and excess fruit supply are expected to hurt the third quarter significantly, the Cincinnati-based company said.

The company said it will use the $17 million a year that it will save from not paying the quarterly dividend of 10 cents a share to reduce debt and give the company financial flexibility.

Stock Market Champs..........9-22-06

China Development Group Corp. (CTDC)

Last Trade:	4.65
Trade Time:	4:00PM ET
Change:	1.50 (47.62%)

China Technology Development Group Corp., a Hong Kong-based provider of network security products and services, said Friday it regained compliance for continued listing with the Nasdaq stock market.

The company, which was granted a hearing by the Nasdaq Listings Qualifications Panel on Sept. 7, said because it filed its 2005 financial results on Tuesday, it is no longer delinquent and its stock will continue to be listed on the Nasdaq.

Shares of CTDC, which have traded between $1.20 and $14.50 over the last year, were up $1.24, or 49.4 percent, at $4.39 in afternoon trading, a retreat from their intraday high of $5.17. Volume was more than 10 times normal daily trading.

Talk America Holdings Inc. (TALK)

Last Trade:	8.20
Trade Time:	4:00PM ET
Change:	1.63 (24.81%

Broadband voice and data services provider Talk America Holdings Inc. said Friday it agreed to be acquired by Cavalier Telephone & TV for $8.10 per share, or $251 million.

The $8.10 price represents a 23 percent premium over Talk America's closing price Thursday.

Cavalier is a privately held telecommunications company based in Richmond, Va. The combined company will serve more than 550,000 residential customers and 85,000 business customers and will have more than 2,000 staffers.

The companies expect to have combined 2006 revenue of $760 million.

The deal is expected to close in December. After completion, Talk America Chief Executive Ed Meyercord will become chief executive of Cavalier and Brad Evans, current Cavalier chief executive, will become executive chairman.

Talk America shares rose $1.40, or 21.3 percent, to $797 in afternoon trading on the Nasdaq.

DIVX (DIVX)

Last Trade:	18.70
Trade Time:	4:00PM ET
Change:	2.70 (16.88%)

COMMVAULT SYSTEMS (CVLT)

Last Trade:	17.00
Trade Time:	4:00PM ET
Change:	2.50 (17.24%)

Shares of software makers CommVault Systems Inc. and DivX Inc. jumped in market debuts on Friday, continuing a recent uptick for initial public offerings in the technology sector.

After a difficult year for tech IPOs with ten delayed offerings, shares of DivX and CommVault gained in openings on Friday, after pricing at the top or above a forecast range.

"The bigger picture is that these deals are strong fundamentally," said David Menlow, president of IPOfinancial.com. "Market gyrations shouldn't turn sentiments toward these deals into any negative thinking."

CommVault shares opened up 10 percent at $16 and closed at $17 on the Nasdaq.

Shares of DivX opened up 22 percent at $19.50, climbing as high as $20.44, before closing at $18.70 on the Nasdaq.

Both companies trade at roughly 50 times expected 2006 earnings, but have strong revenue growth and high gross margins, which bodes well for sustained gains, said Francis Gaskins, an independent IPO analyst and president of IPO Desktop.

"What people are looking for is top-line revenue growth where the company's technology is being adopted," Gaskins said. "(DivX and CommVault) are in the spotlight now."

CommVault designs software that backs up, protects and recovers data and sells products under the QiNetix brand.

For the three months ended June 30, the Oceanport, New Jersey-based company earned $3.34 million on $33.5 million in total revenue.

The company's 11.1 million share offering raised $161 million on Thursday after pricing at $14.50, the top of range, and gave the company an initial market capitalization of almost $604 million.

Media software maker DivX roughly doubled revenue from technology licensing between the first half of 2005 and 2006.

The San Diego, California-based company's software was downloaded more than 50 million times over the last 12 months, according to financial statements submitted to the U.S. Securities and Exchange Commission.

The 9.1 million share offering raised $145.6 million on Thursday, pricing at $16 per share, above a forecast range, and gave the company an initial market capitalization of about $535 million.

Stock Market Chumps..........9-22-06

Advanced Analogic Technologies, Inc. (AATI)

Last Trade:	5.68
Trade Time:	1:15PM ET
Change:	1.42 (20.00%)

Shares of Advanced Analogic Technologies Inc. fell on Friday to their lowest level since listing more than a year ago, after the chip maker cut its quarterly outlook, prompting at least two brokerage rating downgrades.

The stock fell 18.31 percent to $5.80 in afternoon Nasdaq trade, after touching a year low of $5.75. The stock listed in August 2005 at $10.

Late Thursday, Advanced Analogic, which makes power management chips in audio devices and mobile phones, cut its third-quarter forecast citing falling sales in Korea and Taiwan and softness in the wireless handset market.

RATING CUTS

Analyst Quinn Bolton of Needham & Co. lowered his rating on the stock to "hold" from "buy".

He said the magnitude of Advanced Analogic's pre-announced revenue and profit shortfall for the second half of 2006 raises many questions regarding the company's business with Samsung Electronics Co. Ltd. <005930.ks> and LG Electronics <066570.ks>, which are its two largest customers.

The miss also highlights the risk associated with the company's concentration at the two Korean companies, which account for 50 percent of sales, the analyst added in a research note.

Bolton also said the uncertain revenue outlook together with Advanced Analogic's lawsuits with Linear Technology will pressure its shares in the near-term.

Analyst Michael Davies of Next Generation also downgraded his view to "neutral" from "buy".

Davies noted that Samsung, which accounted for 27 percent of Advanced Analogic's revenue in the second quarter of 2006, has faced challenges in the handset market and has been slow to order newer products such as the switching regulator until after a ruling on the dispute with Linear Technology.

The companies are disputing over patent infringement.

REDUCED OUTLOOK

On Thursday, Advanced Analogic said it expects a third-quarter loss of 4 cents to 6 cents a share, on revenue of about $19 million to $20 million.

The Sunnyvale, California-based company previously said it expected to report third-quarter earnings ranging between a loss of 1 cent a share to net income of 1 cent a share, on revenue of $22 million to $24 million.
Prior to the outlook announcement, analysts on average were expecting the company to earn 3 cents a share, excluding exceptional items, on revenue of $23.4 million, according to Reuters Estimates.

EPIX Pharmaceuticals Inc. (EPIX)

Last Trade:	4.32
Trade Time:	4:00PM ET
Change:	0.99 (18.64%)

Shares of Epix Pharmaceuticals (EPIX) were among health care stocks' losers Friday, plummeting 15.6% on disappointing study results of its experimental anxiety drug.

Epix Pharmaceuticals Inc. said on Thursday that early results from a pivotal-stage trial of its experimental treatment for general anxiety disorder show it does not work better than a placebo.

"Based on these top-line results, we plan to refocus our efforts away from anxiety to evaluate the benefit in depression more closely and assess opportunities for initiating a Phase 2 clinical trial in depression sooner than originally planned," Chief Executive Michael Kauffman said in a statement.

The company said the anxiety trial showed a trend in favor of patients treated with PRX-00023, but the outcome may have been affected by a higher than expected response in the placebo-treated patients.

Epix also said a preliminary review indicated that the treatment was well tolerated and that side effects, including impact on sexual function and sleep, in patients receiving PRX-00023 were similar to placebo.
Boston Scientific Corp. (BSX)

Last Trade:	14.85
Trade Time:	4:03PM ET
Change:	1.51 (9.23%)

Boston Scientific Corp. shares tumbled to a four-year low on Friday after the company issued a profit warning for the third quarter, prompting at least one major Wall Street firm to raise questions about the company's management and cash situation.

The late-Thursday profit warning sparked several broker downgrades and led to the biggest one-day share-price decline in about 5-1/2 years.

The sell-off reflects not just weaker-than-expected profits, but also concerns about an impending cash crunch, said Citigroup analyst Matt Dodds.

"Is there something worse lurking here? They've got a lot of debt and not a lot of wiggle room. This company is on a tight rope," said Dodds, who until this week was the only Wall Street analyst who had a "sell" rating on the stock.

The company was not immediately available to comment.

Boston Scientific earlier this year took on about $9 billion in debt to help pay for troubled cardiovascular device maker Guidant Corp.

Fueling investors' concerns was the lack of clarity about the company's long-term prospects.

The company is scheduled to report its third-quarter results on October 18 and will provide another update to Wall Street on November 6 when it holds an analyst meeting at its headquarters.

RELIANT ON TAXUS

The acquisition of Guidant, Dodds added, has served to make Boston Scientific more reliant on Taxus drug-coated stent sales. That market is slowing amid growing concerns that the newer generation of stents carry a higher risk of developing sometimes deadly blood clots.

"Where is the board?" he said. "This board has allowed this company to implode."

Late Thursday, the company said adjusted earnings excluding acquisition charges, third quarter sales and worldwide sales for its top-selling Taxus drug-coated stent would fall well short of estimates.

The stock was down $1.66, or 10.2 percent, at $14.70 in heavy midday New York Stock Exchange trade after touching a low of $14.45 earlier in the session.

Prudential Financial analyst Lawrence Biegelsen cut his investment rating to "underweight," citing deteriorating fundamentals, and lowered his share-price target to $14.

Banc of America, RBC Capital Markets, Morgan Stanley and

UBS also reduced their ratings, and Citigroup dropped its price target to $14 from $15. CIBC also cut its price target, to $28 from $29.

"The (implantable cardioverter defibrillators) and stent markets are each contracting, competition is increasing in stents, and on both sides of the business there are important outstanding issues to be resolved with the FDA," JP Morgan analyst Michael Weinstein wrote in a research note.

"This outlook must improve before the stock starts working again, and before the Street can gain any confidence that Boston Scientific has in it the ability to earn at least $1 a share," he added.

Stock Market Champs..........9-21-06

RIVERBED TECHNOLOGY, (RVBD)

Last Trade:	14.95
Trade Time:	3:49PM ET
Change:	5.20 (53.33%)

Riverbed shares rise 48 percent in debut

Shares of computer networking company Riverbed Technology Inc. rose as much as 48 percent in its market debut on Thursday, a day after pricing above a forecast range.

The shares opened up 47 percent at $14.30 before extending the gains to $14.40 in morning trading on the Nasdaq.

Riverbed's first day gains come in contrast to other technology IPOs so far this year. Due to investors' aversion to risk, 10 tech companies this year postponed or withdrew offerings, accounting for about 23 percent of the 44 IPO delays, according to Dealogic data.

The 8.8 million share offering raised $85.8 million Wednesday, after pricing at $9.75 compared with a $7 to $8.50 forecast.

The pricing gave the company an initial market capitalization of about $627 million.

The San Francisco, California-based company makes appliances that increase data transmission speeds across wide area networks (WANs) by five to 50 times, according to the filing with the U.S. Securities and Exchange Commission.

Riverbed lost $17.4 million on revenue of $22.9 million in 2005 after losing $9.8 million on revenue of $2.6 million in 2004, the filing said.

Other issues set to debut Thursday did not fare as well as Riverbed in their pricing on Wednesday. Prescription drug maker Warner Chilcott Holdings Company Ltd. and Home Diagnostics Inc. which makes supplies for diabetics, were priced below their forecasted range.

Underwriters led by Goldman, Sachs & Co. have the option to buy an additional 1.3 million Riverbed shares to cover overallotments, according to the SEC filing.

Yak Communications Inc. (YAKC)

Last Trade:	5.11
Trade Time:	3:48PM ET
Change:	1.21 (31.03%)

Shares of Yak Communications Inc. rose over 30 percent on Thursday after the company said its board approved a $5.25 a share cash offer by Globalive Communications Corp. to acquire all of its outstanding shares.

Shareholders of Yak, including directors and officers, representing a majority holding, have agreed to tender their shares into the bid, the company said in a statement.

The offer by Globalive represents a premium of about 39 percent to the $3.79 closing price of Yak's shares on Sept. 19, the company said.

Shares of the company rose $1.21 to $5.11 in morning trade on the Nasdaq, surpassing its year high of $4.54.

The provider of long-distance and other telecommunications services said Chief Executive Officer Charles Zwebner will be leaving the company upon closing of the transaction.

Yak Communications reported a loss of 12 cents a share in the latest fourth quarter, compared with a loss of 2 cents a share in the year-ago period. Net revenue was $22.2 million compared with $23.5 million an year ago.
OraSure Technologies Inc. (OSUR)

Last Trade:	8.52
Trade Time:	3:53PM ET
Change:	1.51 (21.54%)

HIV Test Makers See Shares Rise on News Routine Testing Recommended

Shares of companies that manufacture tests for HIV gained in midday trading Thursday after the federal government recommended routine testing for all Americans between the ages of 13 and 64.

The U.S. Centers for Disease Control and Prevention said HIV testing should become about as common as a cholesterol check. The recommendation doesn't carry the weight of law, but is expected to influence what doctors do and the types of coverage offered by health insurance programs.

Nearly half of new HIV infections are found when people come for some other kind of care and doctors are trying to diagnose them, CDC officials said.

"We know that many HIV infected people seek health care and they don't get tested. And many people are not diagnosed until late in the course of their illness, when they're already sick with HIV-related conditions," said Dr. Timothy Mastro, acting director of the CDC's division of HIV/AIDS prevention.

"By identifying people earlier through a screening program, we'll allow them to access life-extending therapy, and also through prevention services, learn how to avoid transmitting HIV infection to others," he said.

Shares of OraSure Technologies Inc., which markets a rapid HIV test, surged $1.90, or 27 percent, to $8.91 on the Nasdaq.

American shares of Trinity Biotech, an Irish test maker, gained 92 cents, or 11.4 percent, to $9.03, also on the Nasdaq.

Johnson & Johnson shares added 14 cents, to $64.28 on the New York Stock Exchange.

Stock Market Chumps..........9-21-06

InfoSpace Inc. (INSP)

Last Trade:	18.01
Trade Time:	1:38PM ET
Change:	4.60 (20.34%)

InfoSpace Stock Plunges to New 52-Week Low; Analysts Speculate It Lost Cingular Deal

Shares of InfoSpace Inc. plummeted nearly 20 percent to a new 52-week low in Thursday morning trading, a day after the company announced that one of its biggest wireless carriers will stop purchasing ringtones from the InfoSpace in 2007.

The Bellevue, Wash.-based company's stock dropped $4.48 to $18.13 in morning trading on the Nasdaq, well below its previous 52-week low of $19.85 set in August.

Infospace, which owns search engines, publishes online yellow pages and sells mobile services to wireless companies, said yesterday that one of its carriers plans to make licensing agreements directly with major record labels.

Analysts speculated Thursday that the partner in question is Cingular Wireless, the joint venture between AT&T Inc. and BellSouth Corp.

"Cingular is Infospace's largest mobile partner, representing 33 percent of total company revenue during the first half of 2006 (or 69 percent of mobile segment revenue)," wrote Needham analyst Mark May in a note to investors.

"We expect Infospace's other ringtone partners will go direct over the next year as well," he wrote.

May maintained his "Hold" rating on the stock, but slashed his estimate for 2007 to a loss of 30 cents per share, from a profit of 16 cents per share. He also reduced his 2006 earnings estimate by a penny to 23 cents per share.

The analyst wrote that InfoSpace's plan to announce cost-cutting measures within 30 days will be "more of a re-allocation of headcount and costs into growth areas than a downsizing of staff," because employees aren't segregated by product or partner. As a result, "true cost reductions will be limited in scope," he wrote.

InfoSpace said yesterday that "label tones," or snippets of popular songs, accounted for $55 million of its nearly $90 million in mobile revenue in the first half of the year. InfoSpace's total revenue for the same period was $186.1 million.

Baird analyst William Power maintained his "Neutral" rating on the stock and cut his target price to $20 from $24.

"Though Cingular represents close to 50 percent of InfoSpace's mobile content revenue, the company also provides portal services to T-Mobile USA and Verizon Wireless," Power wrote. Those services account for about 20 percent of the company's mobile content revenue. "We believe its mobile software/infrastructure and search products are stickier, though they also face a variety of competitors, public and private."

Incyte Corporation (INCY)

Last Trade:	4.38
Trade Time:	1:39PM ET
Change:	0.58 (11.69%)

INCY shares fell 9.3% to $4.50 in Thursday morning trade after the Wilmington, Del.-based company said late Wednesday it plans to offer $132 million of 3.5% convertible senior notes due 2011 in a private placement. The notes will be convertible into Incyte common shares at an initial conversion rate of 89.1385 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of roughly $11.22 per share. Incyte expects proceeds of at least $96 million from the offering and plans to use the funds to redeem its outstanding 5.5% convertible subordinated notes due Feb. 1, 2007.

CVS Corp. (CVS)

Last Trade:	32.40
Trade Time:	1:36PM ET
Change:	3.03 (8.55%)

Walgreen Co. (WAG)

Last Trade:	46.63
Trade Time:	1:36PM ET
Change:	3.32 (6.65%)

Rite Aid Corp. (RAD)

Last Trade:	4.46
Trade Time:	1:37PM ET
Change:	0.30 (6.30%)

Rite Aid Corp., the third-largest U.S. drugstore chain, on Thursday posted a smaller quarterly loss, aided by stronger sales of prescription medications and an income tax benefit.

While the results were in line with expectations, Rite Aid's shares fell more than 7 percent on the heels of the news that Wal-Mart Stores Inc., the world's largest retailer, is slashing prices on some generic drugs to $4.

Rite Aid does not have any stores in Florida, where Wal- Mart's low-price generic drug plan will debut. But Wal-Mart intends to expand the plan to as many states as possible next year, which could put pressure on the drugstore chain.

"We'll be interested to see the results of the pilot program in Florida," Rite Aid President and Chief Executive Mary Sammons said during a conference call. "I think it is really early to try to speculate on it until we can spend a little bit more time digging into what they're doing here."

Sammons also speculated that Wal-Mart is picking older generic drugs, where prices are already low, for the $4 plan and that by no means are they cutting prices on all generics.

"They're obviously picking a subset of them for economic reasons," Sammons said.

Rite Aid, which plans to acquire the Brooks and Eckerd U.S. drugstore chains, also stood by its financial forecasts for the current fiscal year.

Rite Aid has been remodeling its stores to better appeal to customers as larger rivals Walgreen Co. and CVS Corp. continue to expand. It is also adding more in-store services. Just this week, Rite Aid said it would open three in-store clinics with medically supervised treatment for weight control with Lindora Inc. and open Sutter Express Care medical clinics in six of its stores.

The loss narrowed to $300,000, or 2 cents per share, in the second quarter ended on September 2, from $1.6 million, or 3 cents per share, a year earlier.

Rite Aid said it saw an income tax benefit of $3.2 million, up from $2.2 million a year earlier.

In August, the Camp Hill, Pennsylvania-based company announced a plan to buy the Brooks and Eckerd chains from Jean Coutu Group (PJC) Inc. for about $2.6 billion. The acquisition could close as early as Rite Aid's fourth quarter, which ends on March 3.

The deal would bring Rite Aid's store count to about 5,200 from 3,315 stores at the end of the second quarter. It would still be the No. 3 U.S. chain behind Walgreen and CVS.

Second-quarter revenue rose 3.8 percent to $4.29 billion.

Sales at stores open at least a year, or same-store sales, rose 3.8 percent, with pharmacy same-store sales up 4.7 percent and sales of general merchandise up 2.3 percent.

Rite Aid stood by its earlier forecasts for fiscal 2007.

It still projects a net loss of $5 million to a net profit of $40 million, or a loss of 7 cents per share to a profit of 2 cents per share; sales of $17.4 billion to $17.65 billion; and a same-store sales increase of 2 percent to 4 percent.

Analysts, on average, expect Rite Aid to post a profit of nil per share this year on $17.5 billion in revenue, according to Reuters Estimates.

Rite Aid shares were down 30 cents, or 6.3 percent, at $4.46 on the New York Stock Exchange after falling to $4.42 in morning trading. Walgreen shares and CVS were also lower.

Stock Market Champs..........9-20-06

Star Scientific Inc. (STSI)

Last Trade:	3.17
Trade Time:	1:16PM ET
Change:	0.71 (28.86%)

STSI received letter correspondence from The Honorable Marvin J. Garbis of the United States District Court for the District of Maryland regarding the Company’s ongoing patent infringement lawsuit against R.J. Reynolds Tobacco Company. The letter said, "I have Mr. McMillan’s letter of September 5, 2006 and understand all parties' interest in moving the case to final resolution. I shall try to issue decisions on the pending matters within a month."

CytRx Corp. (CYTR)

Last Trade:	1.58
Trade Time:	1:18PM ET
Change:	0.22 (16.18%)

-CytRx Corporation today announced that initial findings from data analysis of the Company's Phase IIa clinical trial with arimoclomol for the treatment of amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease) will be presented by President and CEO Steven A. Kriegsman and Senior Vice President of Drug Development, Jack Barber, Ph.D., at the UBS Global Life Sciences Conference. The Company's presentation is scheduled for Tuesday, September 26, 2006 at 9:30 a.m. Eastern time (6:30 a.m. Pacific time) at the Grand Hyatt New York Hotel in New York City.
Applied Digital Solutions Inc. (ADSX)

Last Trade:	1.60
Trade Time:	1:19PM ET
Change:	0.19 (13.48%)

VeriChip Corporation, a subsidiary of Applied Digital Solutions, announced today that it has deployed its VeriMed System in 18 emergency departments in New Jersey and New York, staffed by Emergency Medical Associates (EMA), a nationally-recognized, state-of-the-art emergency physician group.

The VeriMed System, which consists of a hand-held radio frequency identification (RFID) scanner, an implantable RFID microchip, and a secure patient database, is being used to help rapidly identify and provide access to important health information on participating patients who arrive at the emergency department unconscious, delirious, or unable to communicate. Although over 150 hospitals have registered to use the VeriMed System, EMA is the first emergency physician group in the United States to have the VeriMed System available in all 18 of its contract hospitals.
Eagle Materials Inc. (EXP)

Last Trade:	37.83
Trade Time:	1:10PM ET
Change:	3.67 (10.74%)

Laurence Hirsch, EXP's chairman, purchased 400,000 shares of Eagle for a total $14.1 million over the past few days, according to a filing with the SEC.
AAR Corp. (AIR)

Last Trade:	25.25
Trade Time:	1:10PM ET
Change:	2.03 (8.74%)

AAR Corp., an aerospace supplier, said Wednesday fiscal first-quarter earnings more than doubled as global demand from the commercial aviation sector spurred a 21 percent sales gain.

Net income in the quarter ended Aug. 31 increased to $11.8 million, or 29 cents per share, from $5.3 million, or 15 cents per share, in the year-ago period. Wall Street was looking for profit of 28 cents per share, according to a Thomson Financial poll of four analysts.

AAR, which operates parts supply and maintenance units, said net sales added 21 percent to $242.2 million from $199.6 million last year. The aviation supply chain unit saw a 19 percent increase in sales as demand from the global aerospace sector remained strong.

The company finished August with $119 million cash on hand.

AAR shares closed Tuesday at $23.22 on the New York Stock Exchange

Stock Market Champs..........9-19-06

Summit Bank Corp. (SBGA)

Last Trade:	22.30
Trade Time:	3:17PM ET
Change:	6.20 (38.51%)

UCBH Holdings to buy Summit Bank Corp. for $175M

San Francisco-based UCBH is the parent of United Commercial Bank, which has branches in Fremont, Cupertino, San Jose and San Mateo. Summit Bank Corp. is the holding company of Summit National Bank, based in Atlanta.

Summit has five branches in metropolitan Atlanta and two in the South Bay. It also runs the Concord Bank in Houston and has a representative office in Shanghai. On June 30 it had $656.7 million in assets and $569.8 million in deposits.

The boards of both companies have approved the deal, in which Summit Bank Corp. will merge with a subsidiary of UCBH and Summit National Bank will merge into United Commercial Bank.

UCBH will issue 4.8 million of its own shares and pay $87.4 million in cash, plus about $800,000 related to the cash out of Summit's outstanding options.

The deal should close in the first quarter of next year. It must be approved by Summit Bank shareholders.

Napster Inc. (NAPS)

Last Trade:	4.03
Trade Time:	3:21PM ET
Change:	0.48 (13.52%)

Napster Shares Climb As Company Weighs Strategic Partnerships, Sale

Shares of Napster Inc. climbed in Tuesday trading, a day after the company announced it retained UBS Investment Bank to weigh possible partnerships or a sale of the company.

Napster, which sells digital music over the Web to more than 500,000 subscribers, said recent third-party interest sparked the move.

The stock gained 52 cents, or 15 percent, to $4.07 on the Nasdaq.

"The rising competitive heat, a slow start to the company's ad-supported free music initiative, and the lack of a clear path to profitability all lead us to the conclusion that Napster needs a partner," wrote Canaccord Adams analyst Steven Frankel in a note to investors. Frankel wrote that he would not be surprised if a hardware manufacturer were interested in a partnership or buyout.

Frankel advised investors to take advantage of the bounce today to sell, and wrote that shares would drop to the $3 level if a sale didn't go through.

BMO Capital Markets analyst Leland Westerfield upgraded the stock to "Market Perform" from "Underperform" Tuesday and raised his price target to $4 from $3, on the likelihood Napster will indeed be acquired. He estimated the time frame to be short -- two to four months.

Because the company owns all the technology needed to sell and serve music to its customers, the analyst wrote, "Napster will be highly prized by up-and-running services that do not directly own their backend systems (e.g., Sony and Virgin), music labels (e.g., EMI and Warner Music Group) and interim-technology players (e.g., XM Satellite Radio)."

Barbara Coffey, a Kaufman Bros. analyst, rates Napster stock a "Buy" with a $5 price target. The analyst wrote in a note to investors that international licenses with content providers will be valuable to possible buyers, which she speculates include "handset and other hardware makers, cellphone service providers, consumer-oriented Web site companies and media companies."

Other possible acquirers mentioned in analyst response Tuesday morning included Web retailer Amazon.com Inc., digital media company RealNetworks Inc., flash memory maker SanDisk Corp. and Google Inc.

Opexa Therapeutics, Inc. (OPXA)

Last Trade:	6.85
Trade Time:	3:04PM ET
Change:	0.85 (14.17%)

Opexa Commences Phase IIb Multiple Sclerosis Study
Monday September 18, 8:00 am ET

Reports Positive Phase I/II DataProvides Update on Preclinical Progress Opexa Therapeutics, Inc. a company involved in the development and commercialization of cell therapies, today announced a number of positive steps in the Company's development including:

• Its Phase IIb study with Tovaxin(TM) for the treatment of multiple sclerosis has begun. More than 90 attendees from 35 clinical sites attended the investigators' meeting held recently in The Woodlands. These sites have begun screening patients for the 150-patient trial. Opexa expects that the first patients will be enrolled early in the fourth quarter of this year.
• Positive data from the Phase I/II trial with Tovaxin in multiple sclerosis indicate that after 12 months, patients exhibited a relapse rate reduction of more than 90%.
• Initiation of animal studies at the University of Texas Medical Branch at Galveston utilizing the Company's autologous adult human stem cell regenerative medicine platform technology.

Hyperdynamics Corp. (HDY)

Last Trade:	2.15
Trade Time:	3:18PM ET
Change:	0.34 (18.78%)

Hyperdynamics Reports Negotiations Completed for New Contract with Guinea
Tuesday September 19, 9:45 am ET

Major Progress Realized Working Through Guinea's Democratic Process Sept. 19, 2006--Hyperdynamics Corp. announced today that the company has completed negotiations for a new production sharing agreement and has realized major progress working through the democratic process in Guinea.

Recently, the new Minister of the Mines and Geology Dr. Ousmane Sylla, in a meeting with the company's Executive Vice President Harry Briers, agreed that negotiations for a new 2006 production sharing contract were completed. Sylla expressed full support of the new agreement and stated that he is ready to sign it. Simultaneously, Hyperdynamics' executives have held key meetings with many of the ministers of the president's cabinet, as well as the President of the National Assembly Elhadj Aboubacar Sompare. In a filmed meeting, Sompare gave his full support for the newly negotiated PSA, and expressed an anxious willingness to move it quickly through the National Assembly affirmation process that would result in legislation endorsing the new PSA.

When asked to comment, Kent Watts, CEO, said, "While we had expected to announce the signing of a new contract by now, we indeed have realized major progress. With the help of U.S. Ambassador Jackson McDonald and our talented professional team, the support of the many influential ministers, and the support of the National Assembly, I can see no other viable democratic outcome than a fully executed agreement."

About Hyperdynamics

Hyperdynamics Corp. provides energy for the future by exploring and developing new and redeveloping residual sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corp., owns rights to explore and exploit significant acreage offshore the Republic of Guinea, West Africa. HYD Resources Corp. focuses on domestic production in proven areas.

CanArgo Energy Corp. (CNR)

Last Trade:	1.4500
Trade Time:	3:17PM ET
Change:	0.1500 (11.54%)

CanArgo Energy Corporation ("CanArgo") today issued an update on the Manavi M12 well which is currently drilling in Georgia.

Whilst drilling ahead through the Cretaceous limestone reservoir a significant gas influx was observed, with up to 20% gas recorded at surface and with heavily gas-cut drilling mud. Traces of condensate were also observed in the mud. Drilling was temporarily halted at a depth of 4,733 metres (15,528 feet) in order to increase the mud weight to control the flow. Cuttings samples indicate a fractured porous vuggy white limestone, and oil/bitumen staining has been noted together with light oil/condensate shows. The mud weight is still being increased to control the well, after which it is planned to re-commence drilling through the reservoir whilst hydrocarbon shows continue. It is anticipated that total depth will be reached in early October 2006 after which logs will be run to evaluate the zones to be tested.

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and in Kazakhstan.

Herbalife Ltd. (HLF)

Last Trade:	36.30
Trade Time:	3:20PM ET
Change:	3.60 (11.01%)

Herbalife Appoints Stacy Brovitz As Senior Vice President of Global Operations

Herbalife Ltd., a maker of nutritional supplements and weight management products, on Tuesday appointed Stacy Brovitz as senior vice president of global operations.

Brovitz, 46, will oversee Herbalife's global supply chain, manufacturing and distribution, among other functions. He will report to President and Chief Operating Officer Gregory L. Probert.

Brovitz most recently served as chief operating officer of Dormont Manufacturing Co., a maker of stainless steel gas appliance connectors, a position he held since 1992. Previously, he was vice president of the capital markets group for JP Morgan Chase & Co.

Herbalife's operations stretch across 62 countries, with a manufacturing facility in China and distribution centers in the Netherlands and Mexico.

Herbalife shares were up $3.10, or 9.5 percent, at $35.80 in afternoon trading on the New York Stock Exchange. Morgan Stanley upgraded the stock earlier Tuesday to "Overweight" with a $40 price target, saying the shares trade at a discount to peers.

Votorantim Celulose e Papel S.A. (VCP)

Last Trade:	16.55
Trade Time:	3:22PM ET
Change:	1.00 (6.43%)

International Paper to Exchange Pulp Mill Project for Pulp and Paper Mill in Brazil

-- Paper maker International Paper Co. on Tuesday said it has agreed to an asset swap with Brazil's Votorantim Celulose e Papel SA in which it will spend $1.15 billion and exchange one Brazilian pulp mill for another.

Under the deal, International Paper will trade its pulp mill project under development in Tres Lagoas, in Brazil's Mato Grosso do Sul state -- including 100,000 hectares of forest land -- for VCP's pulp and uncoated paper mill and 60,000 hectares of forest land in Sao Paulo.

International Paper will also invest $1.15 billion in the Tres Lagoas pulp mill project.

"International Paper's Brazil operations are an important base for the company, and this is an opportunity to expand our position in regional markets while capitalizing on one of the world's lowest-cost manufacturing environments," said John Faraci, chairman and chief executive.

VCP's Luiz Antonio pulp and uncoated paper mill produces 350,000 metric tonnes of uncoated papers and 385,000 metric tonnes of pulp annually. International Paper plans to sell 100,000 metric tonnes of the pulp to the Brazilian company as part of a long-term supply pact.

When the swap is complete, International paper said it plans to build a 200,000-metric-tonne paper machine near VCP's Tres Lagoas mill and has an option to build a second similar machine in the future. VCP would provide the pulp, utilities and others services needed.

The transaction is slated to close by February.