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.