Stock Market Chumps..........10-31-06

Avanir Pharmaceuticals (AVNR)

Last Trade:	4.04
Trade Time:	1:17PM ET
Change:	3.36 (45.42%)

Shares of Avanir Pharmaceutical Corp. dropped to a new 52-week low Tuesday after the drug developer received an "approvable letter" from the Food and Drug Administration rather than an outright approval for Zenvia to treat involuntary emotional expression disorder.

Avanir shares fell $3.05, or 41.2 percent, to $4.33 in morning trading on the Nasdaq at nine times their average volume. Shares, which hit a low of $3.96 in earlier trading, previously traded between $5.31 and $18.14 over the past 52 weeks.

The FDA and the company still have to agree on what additional safety and effectiveness data is needed for full approval. An approvable letter tells a company that their marketing application for a drug is in order but that additional requirements must be met.

The company said it cannot comment on what the FDA requires for a full approval until it meets with the agency, nor can it guarantee that it will continue developing the drug after the meeting.

Avanir hopes to get Zenvia, previously known as Neurodex, approved to treat involuntary emotional expression disorder in patients with neurologic diseases and brain injuries. The disorder is characterized by sudden and unpredictable episodes of crying, laughing, or other emotional displays.

ENGlobal Corp. (ENG)

Last Trade:	5.89
Trade Time:	1:13PM ET
Change:	1.56 (20.94%)

ENGlobal Corporation, a leading provider of engineering services, today reported that its earnings for the third quarter ended September 30, 2006 will reflect an after tax charge of approximately $3.5 million primarily resulting from productivity delays and cost overruns on two fixed price projects in the Company's engineering segment. While the majority of the Company's business units are experiencing positive performance, ENGlobal will report a loss for the quarter after consolidating this charge with its other operations.

ENGlobal plans to pursue efforts to mitigate the level of the cost overruns on these projects, some of which may be recoverable. In addition, the Company plans to modify its contracting strategy, and limit the terms under which fixed price projects will be performed in the future. The Company's engineering segment does not currently have other significant fixed price work under contract.

This charge is based on costs expected to be incurred through the completion of the contracts and includes a variety of assumptions. The Company expects to refine its analysis through project completion as the impact of economic and operational conditions, such as costs of labor and materials, are determined. There will be no impact on prior quarters and the Company believes that the bulk of the financial impact will be captured in its third quarter. The projects are expected to be completed on or before March 31, 2007.

Technitrol Inc. (TNL)

Last Trade:	25.60
Trade Time:	1:14PM ET
Change:	4.73 (15.60%)

Technitrol Inc., which makes magnetic components used in electronics, on Tuesday said it declared a regular quarterly dividend of 8.75 cents.

The company will pay the dividend on Jan. 19, 2007 to shareholders of record Jan. 5

Stock Market Chumps..........10-30-06

Emisphere Technologies Inc. (EMIS)

Last Trade:	6.82
Trade Time:	3:55PM ET
Change:	2.06 (23.20%)

Emisphere Technologies Inc. on Monday reported mixed results for a mid-stage type-two diabetes study of its key oral insulin product, taking away about a fourth of the stock's value.

The company said patients who had blood sugar levels equivalent to Hemoglobin A1c values above 7.5 percent and were being treated with 1,500 mg per day or more of metformin, did not show statistically significant difference between the 5 mg or 10 mg doses taken four times a day.

Hemoglobin A1c is the standard for evaluating glucose control in type-two diabetics, and metformin is a drug used alone or with other medications, including insulin, to treat type-two diabetes.

The company said it is looking for collaborations to take the drug, utilizing its Eligen oral delivery technology, further.

"We will not do the phase III trial on our own, we'll only do it with a partner," Chief Executive Michael Goldberg said over the telephone.

Goldberg said Emisphere has a likely list of pharmaceutical companies to partner with.

"Wall Street tends to focus on statistical significance, but that is not realistic in a phase II study. What management believes is that they have the safety and effectiveness to get a pharmaceutical partner, which is really what needs to happen," W.R. Hambrecht & Co. analyst Andrew Forman told Reuters.

He added, "This was a pivotal study to show that it was safe and effective and it did that, but Wall Street tends to look for a 'gotcha' in the data. I didn't find any."

HIGHER DOSES

Emisphere also tested different dosages of the product in the study, wherein each of the three dosages -- 10 mg taken twice or four times a day, and 5 mg taken four times a day -- were compared with the placebo, or dummy drug.

The company said among these three comparisons, only the 10 mg dose taken four times a day showed a statistically significant decrease in blood sugar levels. The safety profile of the drug was statistically similar to placebo.

Goldberg said there seemed to be a trend to a superiority of the high dose to the lower doses.

Emisphere said the study met its safety and efficacy objectives. "We believe that we have unequivocally demonstrated that the drug is effective," Goldberg said.

Shares of the company fell $2.07 to $6.82 in late afternoon trade on the Nasdaq.

WR Hambrecht has done banking for this company and others. The analyst does not own stock in this company.

Biosante Pharmaceuticals Inc. (BPA)

Last Trade:	1.7000
Trade Time:	3:53PM ET
Change:	0.4500 (20.93%)

Quantum Fuel Systems Technologies Worldwide Inc.

Last Trade:	1.72
Trade Time:	3:58PM ET
Change:	0.33 (16.10%)

Alternative fuel systems maker Quantum Technologies Inc. on Monday said it plans sell 6.1 million shares of company stock and warrants in a private placement for $10 million.

Quantum Technologies said it would sell the shares to institutional investors at $1.64 each, which represents a 20 percent discount to the stock's closing price of $2.05 on Friday.

Shares of the company lost 30 cents, or 14.6 percent on the news, to $1.75, approaching their 52-week low of $1.73. Over the past year, the stock has traded between $1.73 and $5.22, and is off nearly 24 percent year-to-date.

The sale includes 2.1 million in warrants for company stock. The warrants are exercisable six months from closing for a period of seven years at $2.36 per share.

Additionally, for a period that extends until 45 trading days after the shares become registered, investors can buy another 1.8 million shares at $1.64 per share. Those shares would include an additional 600,000 warrants.

Quantum Technologies said it expects to close the transaction by Wednesday.

The company presently has about 58.2 million shares outstanding.

Stock Market Champs..........10-30-06

American Power Conversion Corp. (APCC)

Last Trade:	29.88
Trade Time:	12:13PM ET
Change:	6.12 (25.76%)

Shares of American Power Conversion jumped more than 26 percent before the bell on Monday after French electrical engineering company Schneider Electric said it had agreed to buy the U.S.-based electrical systems maker.

American Power shares rose to $30 in electronic trade, up from a Friday close of $23.76 on the Nasdaq.

Point Therapeutics Inc. (POTP)

Last Trade:	1.47
Trade Time:	12:15PM ET
Change:	0.22 (17.60%)

POTP shares jumped 22% to $1.53 in Monday morning trade after the Boston-based biopharmaceutical company said new data in an osteosarcoma model demonstrated that mice treated with talabostat, the company's lead product candidate, had a four-fold decrease in the number of primary tumors compared to saline treatment. In a separate experiment, the company said mice treated with talabostat had a 20-fold decrease in the number of metastatic lung nodules. The studies were presented at the annual meeting of the International Society for Biological Therapy of Cancer Development in Los Angeles.

Cortex Pharmaceuticals Inc. (COR)

Last Trade:	1.97
Trade Time:	12:16PM ET
Change:	1.08 (35.41%)

27-Oct-06

Rodman & Renshaw

Downgrade

Mkt Outperform

Mkt Perform

Nextest Systems Corp. (NEXT)

Last Trade:	10.25
Trade Time:	12:20PM ET
Change:	2.75 (21.15%)

NEXT shares tumbled 25% to $9.73 in Friday morning trade after the San Jose, Calif.-based maker of automatic test equipment for semiconductors late Thursday reported fiscal first-quarter net earnings of $4.78 million, up from $1.62 million last year. Net income available to common shareholders came in at $4.6 million, or 25 cents a share, up from $350,000, or 4 cents a share, in the year-ago quarter. Revenue climbed to $26.9 million from $17.2 million. Analysts polled by Thomson First Call had forecast a per-share profit of 20 cents. The company expects fiscal second-quarter earnings of 2 cents to 15 cents on revenue of $17 million to $24 million.

Georgia Gulf Corp. (GGC)

Last Trade:	22.53
Trade Time:	12:17PM ET
Change:	4.39 (16.31%)

Chemicals maker Georgia Gulf Corp. said third-quarter earnings fell 23 percent on higher raw materials costs and lower vinyl resins sales.

Net income dropped to $22.7 million, or 66 cents per share, from $27.9 million, or 82 cents per share, in the year-ago period. Analysts were looking for profit of $1.06 per share.

Sales rose 10 percent to $576.3 million from $525.2 million last year, missing the Wall Street average estimate of $612.3 million.

"Although our businesses experienced much higher average raw materials costs, we generally maintained higher sales prices and respectable sales volumes during the quarter until demand softened in September," the company said.

Georgia Gulf shares plunged $4.42, or 16 percent, to $22.50 in recent trading on the New York Stock Exchange.

Stock Market Chumps..........10-26-06

Renovis Inc. (RNVS)

Last Trade:	3.85
Trade Time:	1:38PM ET
Change:	10.35 (72.89%)

Shares of biopharmaceutical company Renovis Inc. lost nearly three-quarters of their value in Thursday morning trading, after partner AstraZeneca PLC said it is halting development of Renovis' stroke drug following the failure of a late-stage clinical trial.

The stock plummeted $10.46, or 73.7 percent, to $3.74 on the Nasdaq in morning trading, on more than 30 times average volume. Shares set a 52-week low of $3.59 just after the market opened -- marking an 85 percent drop from the stock's 52-week high of $24.01, set March 20.

The news also pulled down American depositary shares of AstraZeneca, Britain's second-largest drug maker. The stock lost $5.05, or 7.6 percent, to reach $61.32 in morning trading on the New York Stock Exchange.

AstraZeneca was Renovis' exclusive licensee for stroke treatment candidate NXY-059, which failed to reduce stroke-related disability in patients and didn't improve the neurological status of stroke victims in a late-stage trial. The results from the study, called SAINT II, were a reversal from previous results seen in a study called SAINT I.

"Unfortunately, the data are clear and although we will continue to review the results (from the study), we understand AstraZeneca's decision to discontinue development," said Renovis President and Chief Executive Corey S. Goodman.

CIBC World Markets analyst Bret Holley downgraded the stock to "Sector Perform" from "Sector Outperform."

"We find these results disappointing, given the lack of consistency with the SAINT-I results," Holley wrote in a note to investors. "While we consider Renovis a quality company, given that the lead program is preclinical, we don't expect Renovis to outperform over the next 12 to 18 months."

The company's lack of a product in clinical development was also an issue for Goldman Sachs analyst May-Kin Ho, who lowered his price target to $5 but maintained a "Neutral" outlook on the stock.

Renovis is partnering with Pfizer to develop VRI antagonists for the treatment of pain and inflammation, but that product won't likely enter Phase I clinical trials until 2007, or later, Ho said in a note to investors. Risks for the company continue to include dependence on corporate partners.

South San Francisco, Calif.-based Renovis separately announced third-quarter earnings Thursday morning, reporting a slightly wider loss that came in better than Wall Street expectations. The company said it is focusing on internal research programs in the wake of the discontinued development program with AstraZeneca.

Utek Corp. (UTK)

Last Trade:	12.31
Trade Time:	1:35PM ET
Change:	6.70 (35.24%)

Aetrium Inc. (ATRM)

Last Trade:	3.58
Trade Time:	1:40PM ET
Change:	1.83 (33.83%)

Red Hat Inc. (RHAT)

Last Trade:	14.39
Trade Time:	1:40PM ET
Change:	5.12 (26.24%)

Oracle Corp. Chief Executive Larry Ellison is shaking up the software industry again, only this time a takeover bid isn't involved -- yet.

Ellison posed a challenge to Linux software leader Red Hat Inc. late Wednesday by announcing that Oracle would begin offering maintenance services for Red Hat products -- and charge less for that than Red Hat does. Red Hat shares were crushed by the news.

Redwood Shores-based Oracle expects to offer discounts of at least 50 percent. The threat wiped out more than one-quarter of Red Hat's market value -- nearly $1 billion -- amid Thursday's deepening investor worries about the much smaller company's ability to withstand the challenge.

The assault on Red Hat continues Ellison's aggressive efforts to build upon the market clout that Oracle already amassed as the world's second-largest software vendor behind Microsoft Corp.

Oracle has spent about $20 billion snapping up other business software makers during the past two years, sometimes refusing to take no for an answer. In the biggest deal of the lot, Oracle launched a hostile bid for PeopleSoft Inc. that took 18 months to complete.

If Red Hat's stock continues to falter, the company could become increasingly vulnerable to a takeover. Oracle executives refused Wednesday to say if they might be interested in buying Red Hat.

"I don't think this will kill Red Hat," Ellison said Wednesday in response to a question from a packed audience attending the biggest convention in Oracle's 29-year history. "This is capitalism. We are competing."

Global Equities Research analyst Trip Chowdhry believes Red Hat might turn into a prime takeover target, but predicted IBM Corp. is more likely to be the buyer than Oracle.

Investors are convinced Oracle's attack will hurt Raleigh, N.C.-based Red Hat.

The company's stock plunged $5.05, or 25.9 percent, to $14.46 during Thursday morning trading on the Nasdaq Stock Market, where Oracle's shares fell 6 cents to $18.56.

Red Hat Chairman Matthew Szulik downplayed the threat to his company, hailing Oracle's move as a positive development for Linux -- an alternative to the dominant Windows operating system that fuels Microsoft's profits.

"There are always concerns, but keep in mind that Oracle ... acknowledged that Red Hat is the technical leader in the market," Szulik said. "We still have a rich product pipeline. We will compete."

Chowdhry thinks Wall Street's concerns about Red Hat are justified. He predicted Oracle's move will trim Red Hat's revenue by about $40 million to $50 million annually. Red Hat's revenue in its last fiscal year totaled $278 million -- a fraction of Oracle's $14.4 billion in revenue.

"Oracle has outsmarted Red Hat," Chowdhry said.

Oracle's challenge comes just a few months after Red Hat trumped Oracle by buying open-source software maker JBoss Inc. for $350 million.

Red Hat's handling of the JBoss deal was just one of several factors that irritated Oracle, Chowdhry said. He believes Red Hat made a crucial mistake by bragging that its Linux products would turn software into a commodity, prompting Ellison to attempt to counterattack.

Ellison said he is more interested in accelerating the open-source movement than crushing Red Hat.

Because much of Oracle's propriety software is designed to run on the Linux operating system, Ellison believes the company will make more money if more major corporate customers embrace open-source software.

Oracle's push into Red Hat's market won't affect financial results for at least the next few quarters, Chief Financial Officer Safra Catz told analysts during a Thursday meeting.

But Ellison's cutthroat tactics could position Oracle to hire away Red Hat's top talent since those workers are more likely to be worrying about their job security, said software industry consultant Joshua Greenbaum.

"Larry plays a hardball game," said Greenbaum, who runs Enterprise Applications Consulting. "This shows he hasn't lost his touch for savvy moves or drama."

Ellison's flair has paying off recently as both Oracle's profits and stock price have been climbing.

Oracle's market value has increased by $34 billion this year, a gain of more than 50 percent that has increased Ellison's net worth by about $8 billion.

NetLogic Microsystems Inc. (NETL)

Last Trade:	19.33
Trade Time:	1:42PM ET
Change:	5.17 (21.10%)

Shares of NetLogic Microsystems Inc., a designer of processors used in networking systems, plummeted in afternoon trading on Thursday after the company posted a 5 percent drop in third-quarter profit, and issued a disappointing fourth-quarter outlook.

For the quarter ended Sept. 30, the company on Wednesday reported a profit of $3.4 million, or 16 cents per share, down from $3.6 million, or 19 cents per share, last year, even as revenue climbed up 3 percent to $26.6 million.

Jeffries & Co. analyst Adam Benjamin, who has a "Buy" rating on the stock, cut his 2007 earnings estimate to $1.01 per share, from $1.46 per share, and lowered revenue guidance for the year to $102 million from $131 million. Analysts currently expect the company, on average, to post 2007 earnings of $1.47 per share on $129.5 million in sales.

Caris & Co. analyst Nicholas Aberle, cut his rating on the stock to "Above Average" from "Buy" and said an inventory correction, as well as the delayed release of a new product, may weigh on the company over the near-term.

"(A) U.S. inventory correction and fading Asia demand (may) materially impact fourth-quarter results," Aberle wrote in a note to investors. "NetLogic provided December quarter guidance which was much softer than expected, with revenues expected to fall roughly 13 percent quarter-over-quarter to $23 million, thereby driving earnings per share down to 24 cents per share."

Analysts polled by Thomson Financial expect the company to post, on average, earnings of 35 cents per share on $28.2 million in sales.

Shares of NetLogic, which have traded between $18.69 and $45.03 over the last year, were down $5.37, or 22 percent, at $19.11 in afternoon trading. Earlier in the session shares set a new 52-week low of $18.66 on the Nasdaq.

Luminex Corp. (LMNX)

Last Trade:	15.99
Trade Time:	1:43PM ET
Change:	4.19 (20.76%)

Luminex Corp. hares tumbled 18% to $16.75 in Thursday morning trade after the Austin, Texas-based provider of biological testing technologies reported third-quarter net earnings of $111,000, or breakeven a share. In the same quarter last year, the company reported a net loss of $657,000, or 2 cents a share. Revenue rose to $12.5 million from $10.8 million

Stock Market Chumps..........10-25-06

LifeCell Corp. (LIFC)

Last Trade:	23.82
Trade Time:	4:00PM ET
Change:	8.02 (25.19%)

Shares of Lifecell Corp. lost a quarter of their value Wednesday after the company posted quarterly results that missed analysts' average estimates and lowered its full-year earnings outlook.

For the third quarter, the provider of human tissue for surgical procedures reported earnings of 15 cents a share and revenue of $35.3 million. Analysts were expecting earnings of 16 cents a share on revenue of $38.3 million.

Lifecell shares fell $8, or 25 percent, to $23.86 in late afternoon trade on the Nasdaq. The shares hit the day's low of $22.50 in intra-day trading.

In a conference call, Lifecell cited slowdown of surgical procedures that it typically sees during the summer months as reason for the sequentially flat revenue in the latest third quarter.

In a research note, analyst Matt Dolan of Roth Capital Patners said Lifecell's weak third-quarter sales were due to lower-than-expected sales of its lead product, AlloDerm Regenerative Tissue Matrix.

AlloDerm, a reconstructive surgical product, contributed $29.9 million in sales for the third quarter, but fell short of the analyst's estimates of $31.9 million.

The comapny said it expects its 2006 product revenue mix to be about 88 percent reconstructive and the rest shared equally by orthopedic and urogynecology.

LOWER OUTLOOK

Lifecell said it now expects full year 2006 earnings of 57 cents to 59 cents a share, including expected share-based compensation of about 19 cents a share.

In July, the company had forecast earnings of 59 cents to 63 cents a share, including share-based compensation expense of about 17 cents a share.

The company also lowered its 2006 product revenue outlook to a range of $138 million to $140 million, down from the $143 million to $148 million it expected earlier.

"The revised guidance reflects probably lower-than-expected sales of Alloderm for 2006," Dolan said on the telephone.

Roth has a "buy" rating and a price target of $38 on the stock.

Analysts were expecting the company to earn 61 cents a share, on revenue of $146.6 million, for 2006, according to Reuters Estimates.

BTU International Inc. (BTUI)

Last Trade:	9.73
Trade Time:	4:00PM ET
Change:	1.71 (14.95%)

BTU International, Inc. (Nasdaq NM: BTUI) announced its financial results for the third quarter ended October 1, 2006.

Net sales for the quarter ended October 1, 2006, were $18.3 million, down two percent compared to $18.5 million for the third quarter of 2005, and down 19 percent compared to sales of $22.5 million in the preceding quarter.

Net income for the 2006 third quarter was up 48 percent at $2.3 million, or $0.25 per diluted share, compared to a net income of $1.6 million, or $0.20 per diluted share, reported in the third quarter of 2005, and down 27 percent compared to a net income of $3.2 million, or $0.34 per diluted share, in the preceding quarter.

Net sales for the first nine months of 2006 were $61.7 million, an increase of 31 percent compared to the same period last year. Net income for the nine months ended October 1, 2006, more than tripled to $8.2 million, or $0.87 per diluted share, compared to a net income of $2.5 million, or $0.34 per diluted share, for the first nine months of 2005.

Commenting on the company's performance, Paul J. van der Wansem, chairman and CEO, said, "Although our third quarter sales were below our earlier expectations, our cost control programs and higher product margins contributed to a solid quarterly profit. Our solar energy business continued to be strong, while we experienced softness in the electronics markets."

Outlook
"We are enthusiastic about the long-term market opportunities in solar energy and electronics and are expanding the development of new products for these sectors. Near term, sales for the fourth quarter are expected to be equal to the third quarter plus-or-minus five percent with earnings per share in the $0.22 to $0.27 range," concluded van der Wansem.

Stock Market Champs..........10-25-06

Applied Digital Solutions Inc. (ADSX)

Last Trade:	2.67
Trade Time:	12:08PM ET
Change:	0.98 (57.99%)

Digital Angel Corp. (DOC)

Last Trade:	3.5499
Trade Time:	12:03PM ET
Change:	1.0399 (41.43%)

Digital Angel Corp shares soared 41% to $3.53 in Wednesday morning trade after the South St. Paul, Minn.-based company said the U.S. Patent and Trademark Office has granted it a patent for its syringe-implantable glucose-sensing RFID microchip. The microchip measures the glucose concentration levels of diabetic patients, the company said. Digital Angel said its sister company, VeriChip, will market and distribute the product. Shares of Applied Digital Inc.(ADSX), the majority owner of Digital Angel, jumped more than 50% on the news.

Buffalo Wild Wings Inc. (BWLD)
Shares of Buffalo Wild Wings Inc. surged to a 52-week high on Wednesday, a day after the casual-dining restaurant chain posted third-quarter earnings and same-store sales as fiery as its hot sauce, prompting an analyst to upgrade the stock.

After the market closed on Wednesday, the Minneapolis company said third-quarter income jumped 88 percent to $3.5 million, or 40 cents a share. Revenue climbed 32 percent to $68.3 million.

Analysts polled by Thomson Financial had been expecting a profit of 31 cents per share.

Also in the quarter, same-store sales -- or sales in stores open at least one year, a widely used industry gauge of performance -- surged 11.8 percent at company-owned stores and 6.4 percent at franchised stores.

It was a "quarter to crow about," said RBC Capital Markets analyst Larry Miller in a research note on Wednesday.

He praised the company's same-store sales, which he expects to stay strong into 2007. He also noted the company affirmed its long-term unit growth of 15 percent, revenue growth of 20 percent and earnings growth of 25 percent.

"We think Buffalo Wild Wings' share offer a compelling relative value in a space where we see very little currently," he wrote, upgrading the company to "Outperform" from "Sector Perform."

He also raised his price target to $55 from $40, and his fourth-quarter earnings-per-share estimate to 49 cents from 41 cents. He lifted his 2006 earnings-per-share projection to $1.60 from $1.42, and his 2007 estimate to $1.99 from $1.77.

Jefferies & Co. analyst Donald Trott affirmed his "Buy" rating and also raised his price target to $57 from $44.

"Buffalo Wild Wings' improved company-operated restaurant margins, aggressive unit expansion, (and) national advertising are all powering rapid growth of the nation's leading chain of casual dining/sports bars," he wrote in a note on Wednesday.

Buffalo Wild shares soared, climbing $8.60, or 20.8 percent, to $49.90 during morning trading on the Nasdaq. Earlier in the session, the stock climbed to $50.43, eclipsing a previous 52-week high of $44.18 set in May.

Yankee Candle Co. Inc. (YCC)

Last Trade:	33.62
Trade Time:	12:03PM ET
Change:	4.90 (17.06%)

Shares of Yankee Candle Co. surged to a new 52-week high Wednesday, after the candle maker agreed to be acquired by private equity investment company Madison Dearborn Partners LLC for about $1.4 billion in cash.

Including assumed debt, the deal is worth about $1.7 billion.

Yankee Candle shareholders will receive $34.75 per share in the deal, which is expected to close in the first quarter. The price represents a premium of more than 57 percent to the company's closing price on July 25, the day before Yankee Candle said it was considering strategic alternatives such as a possible sale, and a 21 percent premium to Tuesday's closing price of $28.72.

Shares surged $4.90, or 17 percent, to $33.62 in morning trading on the NYSE, having earlier hit a new 52-week high of $33.69. Previously, the stock traded between $20.80 and $30.77 over the past year.

Chicago-based Madison Dearborn is a private equity investment firm that specializes in buyouts in industries that include communications, financial services and health care. On Monday, The Wall Street Journal reported that Madison Dearborn has teamed up with another firm to prepare a bid for the Tribune Co. And the firm is part of a consortium of investors buying Spanish-language broadcaster Univision Communications Inc.

Also on Wednesday, Yankee Candle said third-quarter net income declined 3 percent to $14.9 million, or 37 cents per share, while revenue rose 17 percent to $159.6 million.

Stock Market Chumps.........10-24-06

NeuroMetrix Inc. (NURO)

Last Trade:	14.10
Trade Time:	4:00PM ET
Change:	5.75 (28.97%)

Shares of NeuroMetrix Inc. fell sharply Tuesday and set a 52-week low as the medical-device maker was hit with new worries about physicians' ability to bill insurance companies for procedures using its automated nerve conduction test.

Shares of the Waltham, Mass.-based company dropped $4.63, or 23 percent, to $15.22 in early afternoon trading on the Nasdaq Stock Market as investors absorb news that yet another insurance provider decided not to allow physicians to use three existing reimbursement codes to bill for NeuroMetrix's test, NC-stat.

Tuesday's weakest level of $14.30, on heavy volume, was a 52-week low surpassing the prior low of $16.33 set Oct. 11. There was a 52-week high of $41.19 on April 21.

NeuroMetrix makes a strap-on device that allows physicians, even general practitioners, to test for problems like carpal tunnel syndrome and back pain, eliminating the need for a trip to the specialist.

For the last couple of years, physicians under NeuroMetrix' guidance have been able to bill the procedure under existing codes that cover the standard surface and needle procedures it competes with. The growth prospects have led the company's stock to more than double in value over the past 17 months. Chief Executive and founder Shai Gozani told investors last month that the market for his company's products could top $1 billion.

The problem is, the revenue stream could soon start to dry up as more medical carriers balk at reimbursing the procedure.

First Coast Service Options Inc., a Florida Medicare provider, said in a coverage bulletin dated Oct. 18 that claims for coverage of NeuroMetrix's test now will be administered on an individual basis and that existing codes used by doctors to bill for nerve-conduction tests should not be used to bill for NC-stat procedures.

First Coast Service said that "procedure code descriptor must precisely describe the service billed" and that until a specific code for NC-stat is established, a miscellaneous code for unlisted neurological diagnostic procedures should be used.

That could translate in a sizable drop in reimbursement for doctors using NC-stat to test patients and could affect future use of the device.

Susquehanna Financial Group LLLP later downgraded NeuroMetrix to "neutral," citing First Coast Service's decision as a factor in its ratings change.

First Coast Service is the latest of several medical carriers that recently said they either won't cover NC-stat or won't allow it to be billed under codes developed for traditional nerve disorder tests.

Cigna Corp. unit Cigna Healthcare in July specifically excluded NC-stat from coverage, saying the device and others like it "are considered experimental, investigational or unproven."

NeuroMetrix's Gozani told Dow Jones in September that NC-stat is an established and tested alternative and that moves by insurers to deny coverage aren't anything new for his company. Gozani said NeuroMetrix isn't considering seeking its own code for the NC-stat technology.

NeuroMetrix Chief Financial Officer Brad Smith wasn't immediately available for comment Tuesday.

Meanwhile, TrailBlazer Health Enterprise LLC is finalizing its local coverage decision on NC-stat and is leaning toward excluding NC-stat from coverage. TrailBlazer's medical director told Dow Jones last month that even if the medical carrier decided to cover NC-stat, none of three existing CPT codes used to bill traditional nerve studies could by used by physicians to cover NC-stat.

Noridian Administrative Services LLC also is looking to exclude NC-stat from coverage.

NeuroMetrix sells its handheld NC-stat machine for about $5,000. Disposable sensors used to test nerve responsiveness cost about $35 each, and four are typically required per test. Gozani told investors last month that it costs a physician about $150 for the four disposable sensors needed for an NC-stat nerve study and that the physician typically nets $200 per patient tested.

Sigmatel Inc. (SGTL)

Last Trade:	4.87
Trade Time:	4:00PM ET
Change:	0.72 (12.88%)

Memory chip maker SigmaTel Inc. on Tuesday said it will eliminate 60 positions, or 14 percent of its domestic workforce, in the fourth quarter and forecast a loss for the quarter.

For the fourth-quarter, the company expects to report non-GAAP loss of 23 cents to 29 cents a share, on revenue of $41 million to $46 million.

Analysts on average were expecting the company to post a loss of 24 cents a share, excluding special items, on revenue of $44.1 million, for the quarter, according to Reuters Estimates.

Announcing third-quarter results, SigmaTel said it had set an internal goal to keep its losses at $3 million and break even on a non-GAAP basis for the second quarter of 2007, on revenue of $55 million.

The company added it expects the second half of 2007 to be profitable assuming normal seasonality.

During the third quarter, the company had reduced headcount and other operating expenses as a result of the sale of the PC Audio product line.

Shares of the company closed 13 percent down at $4.87 on the Nasdaq.

Stock Market Champs..........10-24-06

Netflix, Inc. (NFLX)

Last Trade:	27.37
Trade Time:	4:00PM ET
Change:	4.29 (18.59%)

Netflix delivered a third quarter well above Wall Street's expectations on Monday.

Shares of the Los Gatos, Calif.-based company surged in Tuesday morning trading, jumping 16%, or $3.75, to $26.83.

Netflix reported net income of $12.8 million, or 18 cents per diluted share, on revenues of $256 million. That was well above consensus forecasts, as Wall Street had been predicting earnings per share of 12 cents.

Subscriber growth was also strong, as the company acquired 1,310,000 gross subscriber additions, a 42% increase year-over-year and a 22% jump from the previous quarter. Better still for the company, turnover was also down from the like quarter last year to 4.2% from 4.3%.

Netflix raised its revenue guidance for the fourth quarter to between $273 million and $278 million from a previous range of $267 million and $272 million. It also upped its net income expectations to between $7.5 million to $13.5 million, from a previous range of $3.8 million to $8.8 million.

Implicit in this guidance is the company's plan to spend $40 million on a digital download service the details of which will be revealed in January. Last year the company invested $10 million in this service. Unlike Amazon and Apple , Netflix's downloadable business will focus on movie rentals, not movie sales.

"[That] dovetails, well, we believe, with its DVD by mail, ordered online, core service offering," said Barton Crockett, an analyst for JP Morgan, in a research report.

Travelzoo Inc. (TZOO)

Last Trade:	38.62
Trade Time:	4:00PM ET
Change:	6.22 (19.20%)

Web travel-search company Travelzoo Inc. said Tuesday its third-quarter profit almost doubled on continued growth in online advertising.

The profit results beat Wall Street's estimates, but sales growth fell short of analysts' projections. Shares surged $6.60, or 20 percent, to $39 in morning trading on the Nasdaq, where they've traded between $16.50 and $52.99 over the past year.

Net income grew to $4.6 million, or 28 cents per share, from $2.3 million, or 13 cents per share, in the prior-year period. The results topped Wall Street's expectations of 24 cents per share, according to an analyst poll by Thomson Financial.

Revenue rose to $17.6 million in the quarter, up from $13.4 million in the year-ago period. Analysts, on average, had expected $18.2 million.

Travelzoo reported quarterly revenue growth at both its North American and European units. Also aiding the bottom line, Travelzoo said its effective income tax rate for the quarter was 46 percent, down from 48 percent in the year-ago period.

U.S. stock futures edged lower on Tuesday as investors grew cautious as a Federal Reserve interest-rate decision neared and after a disappointing outlook from one of the world's larger microchip makers, Texas Instruments.

Dow Jones futures were recently down 8 points, S&P 500 futures slipped 1.7 points and Nasdaq futures fell 4 points.

On Monday, a store revamp plan by Wal-Mart Stores led to a rally in U.S. stock markets, with the Dow Jones Industrial Average closing 122.8 points higher to yet another record close, and the Nasdaq Composite and S&P 500 also ending higher.

Tuesday's economic calendar is light, with the release of the Richmond Fed's manufacturing index. The Federal Open Market Committee starts its interest-rate setting meeting but won't announce results of the meeting until Wednesday.

The dollar edged higher on the euro and the yen.

Crude-oil futures slipped 34 cents to $58.47 a barrel.

Tuesday's earnings list includes tobacco giant Altria, chemicals producer DuPont and defense contractors Northrop Grumman and Lockheed Martin.

Texas Instruments shares weakened 1.4 percent in Germany after reporting slower-than-forecast 13 percent sales growth and warning that fourth-quarter semiconductor growth will be below the seasonal average.

Shares of STMicroelectronics, a TI peer that puts its own quarterly statement out after Tuesday's close, dropped 1.9 percent in Paris.

Outside the U.S., there was an influx of news in the commodity sector.

Oil giant BP reported a 4 percent profit decline, oil and aluminum producer Norsk Hydro reported a 15 percent profit rise and metals giant BHP Billiton unveiled a 19 percent decline in copper output.

Another metals producer, Anglo American, slipped after naming Alcan's Cynthia Carroll as its next chief executive.

Cambrex agreed to sell its bioproducts and biopharma units to Swiss pharmaceutical ingredient maker Lonza for $460 million in cash. Cambrex will use the estimated $450 million in proceeds to repay outstanding debt and, along with an additional $125 million to $150 million from new lines of credit, pay a special dividend between $13.50 and $14.50 a share.

The Nikkei 225 ended 0.1 percent lower in Tokyo on weakness from mobile operators on Softbank's decision to cut prices, while Shanghai-listed stocks rallied 2.6 percent.

In Europe, the FTSE 100 rose 0.1 percent in London while the French CAC 40 slipped 0.2 percent in Paris.

Stock Market Chumps..........10-23-06

Replidyne, Inc. (RDYN)

Last Trade:	5.39
Trade Time:	12:06PM ET
Change:	4.85 (47.36%)

Biotech drug developer Replidyne Inc. and drugmaker Forest Laboratories Inc. said Monday the Food and Drug Administration won't approve their antibiotic faropenem medoxomil without further clinical trials.

The companies estimate that the required studies will add at least two years to the development of the antibiotic.

Replidyne and Forest, which partnered on the drug in February, are trying to get the antibiotic approved for acute bacterial sinusitis, community-acquired pneumonia, acute exacerbation of chronic bronchitis and uncomplicated skin infections.

While data from 11 late-stage clinical trials and more than 5,000 patients were submitted to the FDA, the companies believe that the FDA has recently started preferring superiority studies -- where a new drug has to be shown better than standard care -- for antibiotics.

The FDA recommended new clinical studies for all indications sought; there were no safety or manufacturing concerns.

Replidyne said it is in a strong financial position to continue developing the antibiotic with Forest. The companies plan to discuss development plans further with the FDA.

Forest shares fell $3.47, or 6.7 percent, to $48 in premarket activity on the INET electronic exchange, after closing Friday at $51.47 on the New York Stock Exchange. Replidyne shares, which trade on the Nasdaq, closed Friday were unchanged in premarket activity.

Neoware, Inc. (NWRE)

Last Trade:	12.00
Trade Time:	12:06PM ET
Change:	2.53 (17.41%)

Hardware and software maker Neoware Inc. said Monday it expects first-quarter sales of about $21.5 million, below Wall Street's consensus estimate.

On average, analysts polled by Thomson Financial are looking for sales of $24.7 million for the quarter, which ended on Sept. 30.

In the fourth quarter, the company posted revenue of $23.5 million.

The company said it will post results on Oct. 30.

Adeza Biomedical Corp. (ADZA)

Last Trade:	15.25
Trade Time:	12:07PM ET
Change:	2.68 (14.95%)

Adeza Biomedical Corp. on Monday said U.S. regulators asked for an additional animal study, and other conditions, before approving Gestiva, its drug to prevent premature births.

The announcement sent the company's shares down about 15 percent, or $2.65, to $15.28 in late morning trade on the Nasdaq.

In a statement, Adeza said an approvable leter from the U.S. Food and Drug Administration also outlined post-approval clinical requirements consistent with recommendations made by the FDA advisory committee in August.

In late August, an advisory panel assembled by the FDA for Gestiva said that although clinical data on the drug were adequate for it to win U.S. approval, future information on possible risks was needed.

"We will request a meeting with the FDA to address comments outlined in the approvable letter as soon as possible," said Emory Anderson, chief executive officer of the Sunnyvale, Calif.-based biotech company.

Gestiva is a long-acting, injectable form of the hormone progesterone.

In a separate statement, pharmaceutical company Columbia Laboratories Inc. said it expects to announce results of its pre-term birth treatment PROCHIEVE's late-stage trial in early 2007.

Columbia expects to submit the application for a label indication with the FDA in mid-2007 in case of positive results, Columbia added.

Columbia's shares rose 15 percent to $3.75 on the Nasdaq.

The company said PROCHIEVE is already FDA approved as part of a reproductive treatment for infertile women with progesterone deficiency and to treat secondary amenorrhea.

Secondary amenorrhea is the temporary or permanent cessation of menstruation in a woman who has previously experienced normal menses.

SanDisk Corp. (SNDK)

Last Trade:	49.15
Trade Time:	4:00PM ET
Change:	12.58 (20.39%)

Shares of SanDisk Corp. plummeted Friday after the flash memory maker posted better than expected third-quarter results but forecast a continued decline in flash memory prices.

The stock, which has traded between $37.34 and $79.80 over the last 52-weeks, was down $12.09, or 19.6 percent, at $49.64 in afternoon trading on the Nasdaq on quadruple its average trading volume.

On Thursday Sandisk posted a 4 percent decline in third-quarter profit but topped analysts' expectations.

However, the company said third-quarter average selling prices per megabyte of flash memory fell 25 percent sequentially, with expectations for fourth-quarter prices to drop 15 to 20 percent sequentially.

Citigroup analyst Craig Ellis cut his rating on the stock to "Hold" from "Buy" and said SanDisk is no longer a "new money idea."

"We are now incrementally more cautious in our SanDisk modeling, the company's near-term catalyst profile, and in longer-term share appreciation potential," he wrote in a note to clients. "Given these considerations, we can no longer argue for new money to be put to work in the name."

Other analysts were not as bearish on SanDisk's results.

In a client note, UBS's Alex Gauna wrote that results "were slightly shy of UBS expectations but exceeded consensus estimates on much better than expected bit growth and higher royalty and licensing revenue." He added that, "We were quite surprised by the magnitude of initial adverse reaction to SanDisk results."

W.R. Hambrecht analyst Daniel Amir said the company had a good quarter and speculated that investors may have been disappointed because SanDisk did not meet "whisper" numbers for the quarter.

"We view any sell-off in the stock today as a buying opportunity for investors," Amir wrote in a note to clients.

Accentia Biopharmaceuticals, Inc. (ABPI)

Last Trade:	4.45
Trade Time:	11:28AM ET
Change:	1.57 (54.51%)

Accentia Biopharmaceuticals: New study shows use of a BiovaxID formulation improves disease free survival in 80% of patients Co announces that a new study by Dr. Susana Inoges and colleagues at the University of Navarra has shown that the administration of a BiovaxID formulation given to patients with relapsed Follicular Non-Hodgkins Lymphoma following chemotherapy, with or without concomitant Rituxan, can induce complete long-lasting remissions. Moreover, these second remissions are uniquely characterized by a duration that exceeds the duration of the first remission. In the study, 80% of patients achieved an immune response to the Biovaxid formulation, and among these responders, the median time of complete tumor remission has not been reached after 33 months of mean follow-up.

Stock Market Chumps..........10-18-06

Apollo Group Inc. (APOL)

Last Trade:	38.01
Trade Time:	1:38PM ET
Change:	10.67 (21.92%)

For-profit education company Apollo Group Inc. on Wednesday reported profit that missed Wall Street's expectations and said an investigation into stock option grants had found deficiencies, sending its shares to their lowest level in more than three years.

Apollo also said it might have to restate past financial statements, depending on the investigation's findings.

Net income for the fourth quarter ended on Aug. 31 fell to $93.5 million, or 54 cents per share, from $106.2 million, or 58 cents per share, a year earlier.

Analysts polled by Reuters estimates had forecast 66 cents per share.

Revenue rose 5.5 percent to $624.2 million. Analysts had expected $635.9 million.

"This is a terrible quarter and likely raises many questions about the health of the business model," wrote Prudential Equity Group LLC analyst Steven Barlow, in a note to clients. Prudential rates the stock "neutral."

The results exclude the possible impact of accounting changes from the Phoenix-based company's ongoing review of its stock option grant practices. Apollo said in June that it had received a subpoena from the U.S. Attorney's office in connection with the issue.

At least 125 companies have launched internal investigations or are the subject of probes by the U.S. Securities and Exchange Commission to determine if the dates of stock options were manipulated.

At issue is the practice of setting the date of options grants retroactively to a period before a big rise in a company's stock, making it more likely executives will collect a bigger payout when they exercise the options.

Apollo shares fell 18 percent, or $8.78, to $39.90 on the Nasdaq. That left them down 44 percent for the year. They haven't traded in that range since January 2003.


Cognex Corp. (CGNX)

Last Trade:	22.46
Trade Time:	1:39PM ET
Change:	4.25 (15.91%)

Bear Stearns said the downgrade on the machine vision systems maker's stock was based on a slower-than-expected recovery in the factory automation business.

--The brokerage also said there were uncertainties surrounding some of Cognex's end-markets and the effectiveness of its sales organization.

--Shares of the company fell 15.57 percent to $22.55 in afternoon trade on the Nasdaq.

Stock Market Chumps..........10-17-06

Cytomedix Inc. (GTF)

Last Trade:	1.10
Trade Time:	12:49PM ET
Change:	1.65 (60.00%)

Shares of Cytomedix Inc. lost more than half of their value on Tuesday after it said U.S. regulators denied the company's claim on a gel for healing diabetic foot ulcers.

A unit of the Food and Drug Administration denied the claim that Cytomedix's AutoloGel is substantially equivalent to a legally marketed device, the company said in a statement.

The primary grounds for the rejection appeared to be the use of bovine thrombin, a clotting agent derived from cows, in the gel, the company said.

Bovine thrombin is used on humans in surgery and other instances to stop bleeding, but the FDA body cited studies that said it could also lead to a bleeding tendency, the company added.

Cytomedix said it will appeal the agency's decision and expects the process to be completed in 60 to 90 days.

The company's shares were down $1.46 at $1.29 in morning trade on the American Stock Exchange.

Neurochem Inc. (NRMX)

Last Trade:	15.94
Trade Time:	12:55PM ET
Change:	2.19 (12.08%)

Neurochem Ltd., a unit of biotech drug developer Neurochem Inc., said Monday it replied to a Food and Drug Administration "approvable letter" for its drug candidate Kiacta.

Kiatca is meant to treat Amyloid A amyloidosis, a group of diseases that can destroy the kidneys when organs accumulate deposits of abnormal proteins.

The Canadian company said it received the letter in August from the FDA requesting more information on the drug to approve it. Neurochem filed the application with the agency in February.

The response, according to the company, included about three years of follow-up data on 183 patients enrolled in a mid- to late-stage clinical trial.

Neurochem said follow-up data showed that fewer patients taking Kiatca progressed to end stage kidney disease or died compared to those given a placebo.

Stock Market Champs..........10-17-06

InterMune Inc. (ITMN)

Last Trade:	21.05
Trade Time:	10:36AM ET
Change:	4.22 (25.07%)

Shares of biotechnology company Intermune Inc. rose in Tuesday premarket trading after the company inked a deal valued at up to $530 million to develop its hepatitis C treatment candidates with Roche Group Ltd.

Shares of Intermune rallied $4.82, or 29 percent, to $21.65 after closing at $16.83 in regular trading on the Nasdaq a day earlier.

Late Monday, Brisbane, Calif.-based Intermune said it will receive a $60 million upfront payment and potentially $470 million in additional milestone payments as the compound is developed.

One of the treatment candidates, ITMN-191, developed with partner Array BioPharma Inc., is a protease inhibitor for the hepatitis C virus, an inflammation of the liver caused by a viral infection.

Deutsche Bank analyst Jennifer Chao, maintaining a "Buy" rating, said ITMN-191 has been found to selectively target the liver, while not hurting the heart or liver.

"ITMN-191 addresses a multibillion dollar market opportunity and ITMN deserves a premium multiple for its pipeline scarcity value," Chao wrote in a client note.

Jefferies analyst Eun K. Yang, also maintaining a "Buy" rating, said the deal happened earlier than anticipated, and is "quite favorable, given that Intermune's hepatitis C virus drug candidate, ITMN-191, is yet to enter human testing."

The compound is expected to enter clinical trials by year-end and after an antitrust regulatory waiting period.

Stock Market Champs..........10-16-06

Lumera Corp. (LMRA)

Last Trade:	3.45
Trade Time:	1:53PM ET
Change:	1.87 (118.35%)

Lumera Corporation (NASDAQ: LMRA), an emerging leader in the field of nanotechnology, announced today that it has completed successful testing of its millimeter wave wireless bridge that will enable government and commercial entities to transmit vast amounts of data via a variety of high speed telecommunications networks.

The successful test included transmitting 10 Gbps at 94 GHz, through the use of Gigabit Ethernet and other standard protocols. The single band wireless communications system completes the first phase of Lumera’s product development. In mid-November, Lumera expects to finalize the development and testing of its multiband, high-data-rate, adaptive millimeter-wave wireless communication system.

“We are extremely pleased with the results of the tests on this first system,” said Dr. Raluca Dinu, Director of Lumera’s Electro-Optics Business Unit. “Based on these internal results, we are confident that the third party tests to be conducted next month on the multiband system will be equally positive. We’ve already begun discussions with prospective customers who have expressed interest in the fully functional commercial product.”

Potential applications for the wireless bridge include enterprise campus connectivity, local area network (LAN) extension, metropolitan area network (MAN), redundant access (network diversity), storage access (SAN), distribution of high definition video, teleradiology. Target customers are organizations with vast amounts of data to transmit, such as large commercial enterprises and universities. Government agencies have also expressed an interest in such a high-data-rate wireless bridge for use in disaster recovery applications. Lumera’s wireless bridge offers high data transmission rates at low cost while avoiding the expense of digging and laying optical fiber, in an integrated system solution.

eMerge Interactive Inc. (EMRG)

Last Trade:	2.96
Trade Time:	1:54PM ET
Change:	1.20 (68.18%)

EMerge Interactive Inc. on Monday said it agreed to merge PRIME BioSolutions LLC into a subsidiary of eMerge. On completion of the deal, eMerge will change its name to PRIME BioSolutions Inc. and will be headquartered in Omaha, Nebraska, the company said in a statement.

Open Solutions Inc. (OPEN)

Last Trade:	37.65
Trade Time:	1:55PM ET
Change:	7.37 (24.34%)

Banking Software Company Sold to Private Investors in $785M Deal

Open Solutions Inc., a software company specializing in products for financial institutions, announced Monday it is being sold to private investors for $785 million, plus the assumption of debt.

Providence Equity Partners and The Carlyle Group plan to pay $38 for each share of Open Solutions common stock, which amounts to a 32 percent premium over the average closing price in the last 30 days. The shares had closed Friday at $30.28 on the Nasdaq Stock Market.

Open Solutions stock was at $37.66, up $7.38 or 24 percent, in afternoon trading Monday.

The agreement also lets holders of Open Solutions' debt to convert their bonds into stock, potentially valuing the total deal at $1.3 billion.

Open Solutions' software includes accounting, banking and cash management programs as well as Web hosting and design services for financial institutions.

Founded in 1992, Open Solutions has 1,700 employees in nearly two dozen offices around the country as well as in Canada and India.

The transaction is expected to be completed in the first quarter of 2007, subject to approval by stockholders and federal regulators.

"This is yet another exciting chapter for Open Solutions as we continue our efforts to revolutionize the financial services sector," said Open Solutions Chairman Louis Hernandez Jr.

EHEALTH, INC. (EHTH)
Last Trade: 22.50
Trade Time: 12:15PM ET
Change: Up 8.50 (60.71%)
Shares of online health insurance company eHealth Inc. rose 79 percent in their market debut on Friday, a day after pricing above a forecast range.

The shares opened at $25 before falling back to $23 in morning trade on Nasdaq.

The offering of 5 million shares raised $70 million on Thursday after pricing at $14 per share, compared with a forecast range of $10 to $12.

The pricing gave the company an initial market capitalization of more than $293 million.

EHealth continues a string of recent IPOs from technology-related companies with strong openings.

In September, shares of computer networking company Riverbed Technology Inc. rose 57 percent in their market debut, while shares of software makers CommVault Systems Inc. and DivX Inc. opened 10 percent and 22 percent higher, respectively.

EHealth plans to use net proceeds from the IPO for working capital, general corporate purposes, and possible acquisitions.

The Mountain View, California-based company is licensed to sell health insurance in all 50 states and the District of Columbia and offers products online, according to a filing with the U.S. Securities and Exchange Commission.

ACME PACKET (APKT)
Last Trade: 14.82
Trade Time: 12:17PM ET
Change: Up 5.32 (56.00%)
Shares of Acme Packet Inc., which makes computer networking equipment, rose as much as 70 percent in their market debut on Friday, the day after they priced above a forecast range.

The stock was up $5.51, or 58 percent, at $15.01 in morning Nasdaq trade after rising as high as $16.19 earlier in the session. It opened at $14.

The 11.47-million-share offering raised $109 million on Thursday after pricing at $9.50 a share, compared with an $8 to $9 forecast.

The range was upgraded earlier Thursday from an initial $6.50 to $7.50 per share forecast.

The pricing gave the company a market capitalization of $538.7 million.

In September, shares of computer networking company Riverbed Technology Inc. rose 57 percent in its market debut after pricing above a forecast range. That stock was down 39 cents, or 2.1 percent, at $18.45 on Friday -- but still about 90 percent above the offering price.

Acme Packet creates products to deliver secure communications across Internet network borders, according to the filing with the U.S. Securities and Exchange Commission.

The Burlington, Massachusetts-based company plans to use net proceeds from the offering for working capital and other general corporate purposes, which may include financing growth, developing new products, capital expenditures, acquisitions and investments, according to an amended filing with the SEC.

Viewpoint Corp. (VWPT)
Last Trade: 0.7237
Trade Time: 12:13PM ET
Change: Down 0.2963 (29.05%)
Web search, advertising and imaging services company Viewpoint Corp. slashed its full-year revenue outlook Friday, citing soft ad spending and customers' product delays.

The company said it expects sales to range from $17 million to $20 million for the year, well below its prior outlook of $26 million to $30 million.

For the third quarter, Viewpoint expects sales of about $3 million.

"During the first three quarters of 2006, we estimate that our Unicast revenue more than doubled compared to the same period in 2005," said Patrick Vogt, chief executive, in a statement. "Unfortunately, in the past few weeks we have also seen a decline in orders for our lower margin media services products in the Unicast business."

The company, whose clients include General Electric, Sony and Toyota, said a downturn in car advertising can have a "significant short-term impact" on a business its size.

Viewpoint added it expects to take a non-cash goodwill impairment charge in the third quarter for its services segment, which was also hurt by the softness from automotive customers.

Shares of Viewpoint fell 33 cents, or 32.4 percent, to 70 cents on the Nasdaq.

Simclar Inc. (SIMC)

Last Trade: 9.14
Trade Time: 11:29AM ET
Change: Up 4.05 (79.57%)

Simclar (SIMC) , a contract electronics manufacturer, was surging 44% Thursday after the company said a review of its financials found that errors in its accounting were limited to its unit in Mexico.

Additionally, Simclar said revenue for the quarter ended June 30 was $30.5 million and earnings were $790,000, or 12 cents a share. Shares of Simclar were gaining $2.25 to $7.34 in premarket trading.

Because of the accounting mistakes, Simclar will restate its financials for 2005 and the quarter ended March 31. Last year's earnings will be revised down to 15 cents a share from 19 cents, and first-quarter net income will decline to 8 cents a share from 11 cents.

"We recognize the seriousness of this matter relative to internal controls and the integrity of our financial statements," said Sam Russell, chairman and chief executive. "However, these errors do not impact our basic business operations and there is no evidence of fraudulent activity on the part of any employee."

The company said an examination of its other business units didn't find any similar errors to those that took place in the Mexico operation.

JED Oil Inc. (JDO)

Last Trade:
4.40
Trade Time:
12:11PM ET
Change: -0.90
down (16.98%)

Shares of JED Oil Inc. lost more than half their market value and fell to an all-time low on Tuesday after the oil and gas company said it suspended drilling in the Ferrier and the Pinedale areas, mainly due to a decline in natural gas prices.

JED shares fell $5.47 to close at $5.30 on the American Stock Exchange, their biggest percentage fall since April 2004. Tuesday's fall saw the stock price slide below its initial public offer price of $5.50 per share for the first time.

The fall in the JED stock also dragged down JMG Exploration Inc. shares by about 49.2 percent to close at $3.50 on the NYSE Arca, after touching an year-low of $2.70.

JED is pursuing a merger with JMG Exploration, in which JMG would merge with a wholly owned subsidiary of JED in the U.S.

JED, which develops and operates oil and natural gas properties principally in western Canada and the U.S., said it encountered unexpected water production during drilling in Pinedale and is continuing to investigate the problem.

The company also said it expects to exit the year at a production rate similar to its third-quarter exit rate of 2,001 barrels of oil equivalent per day.

It had recently acquired 100 percent of Enterra Energy Trust's working interest in the North Ferrier area and about 57.5 percent of Enterra's interest in the East Ferrier area as part of an asset swap agreement.

JED and JMG had also recently received approval to increase the well density on JED's lands in the Pinedale/Jonah area of Wyoming.

JED said it will revamp its budget and return to natural gas drilling later this year or early next year, when the price of natural gas is expected to increase during the heating season.

InFocus Corp. (INFS)


Last Trade:
2.44
Trade Time:
11:36AM ET
Change:- 0.55
down(18.39%)

InFocus Corp. on Tuesday warned of a sequentially wider pro-forma operating loss and lower revenue for the third quarter and said its board was evaluating strategic alternatives.

InFocus cited lower-than-expected sales of its entry-level room projectors, the IN72, for the wider pro-forma operating loss, which was at $8.9 million in the second quarter.
The company expects revenue to be $78 million to $82 million, compared with $97.6 million for the second quarter, it said in a statement. Two analysts on average are expecting $95.2 million, according to Reuters Estimates.

InFocus shares were down almost 10 percent in morning trade at $2.70 on the Nasdaq.
The company said its new meeting room projectors -- the 2000 lumen IN32 and 2500 lumen IN34 -- began shipping in limited quantities late in the third quarter. They are expected to be more broadly available in the fourth quarter.

Wilsonville, Oregon-based InFocus said it was committed to making further reductions to its cost structure. It has appointed Banc of America Securities to assist its board in evaluating the strategic alternatives.

New River Pharmaceuticals Inc. (NRPH)
Last Trade: 42.13
Trade Time: 11:30AM ET
Change: up 15.92
up(60.74%)


Shire (SHPGY) and New River Pharmaceuticals (NRPH) saw their shares jump Monday after regulators said their attention-deficit hyperactivity disorder drug was approvable.
Shares of Shire were up 8.7% to $53.70, while New River's shares soared to $38.53, up 47%.

The Food and Drug Administration says the drug is approvable but is contingent on a schedule determination by the U.S. Drug Enforcement Administration, Shire said in a press release late Friday. No additional trials need to be conducted for the drug to be cleared.

The FDA has requested that the drug be assigned the status of a schedule II controlled substance, indicating that the treatment has a high potential for abuse and should be prescribed with certain restrictions.

The two companies and the FDA are still discussing a trade name for the drug, which is currently dubbed NRP104. The drug is on track to go on sale in the first quarter of 2007.

Investors Look to Fed Minutes, Earnings for Clues As to Whether Stocks Will Continue Climbing

Earnings season begins in earnest in the coming week and many investors will be poring over profit reports to gain a sense of whether last week's record-setting run in stocks will continue.
Earnings, and perhaps more important, profit forecasts, will be at the front of investors' minds as they try to glean whether the economy is slowing too quickly as some fear or whether the Federal Reserve's course of rate hikes and pauses will allow growth to slow but continue.

Investors tossed aside many of their concerns about the state of the economy for much of last week and sent the widely followed Dow Jones industrial average to its highest trading and closing levels for several straight days, giving the Dow a 1.47 percent increase for the week. This came despite a lower finish for the Dow Friday triggered by a disappointing employment report. While the record-setting was limited to the 30-stock blue chip index, the Standard & Poor's 500 index and Nasdaq composite index registered impressive gains as well, though they remain well off their highs.

Acquisitive investors will be eyeing their holdings to see whether they bet correctly in recent weeks as oil prices fell further from midsummer highs and as the notion took hold among some investors that the Fed could cut interest rates sooner than later. To keep inflation in check, the central bank raised short-term interest rates 17 straight times starting in June 2004 before standing pat at its last two meetings. Some saw a series of economic reports that showed a slowing economy as all the cover the Fed would need to justify cutting rates. Investors will be looking for insight into the Fed's thinking with the planned release Wednesday of minutes from its last meeting.

While a slowdown could be good for those hoping for a rate cut, few stock market investors would want to see a falloff in profits. Alcoa Inc., whose earnings report customarily marks the beginning of an earnings season, is scheduled to kick things off Tuesday.

While other big-name reports are due this week, investors will also have a smattering of economic data to chew on, including a Commerce Department on retail sales. Strong sales reports from individual retailers last week showed falling gas prices left consumers with more money in their pockets.

ECONOMIC DATA

On Tuesday, the Commerce Department is scheduled to issue its monthly report on business inventories. That could provide a closer look at the manufacturing sector, which has been shown to be weaker in various reports within the past month.

Wednesday brings the Fed's meeting minutes as well as weekly data on crude oil inventories; a surprise increase pushed prices down and helped usher the Dow to its new highs last week.

On Thursday, the Fed plans to release its Beige Book, which summarizes regional economic activity. Also that day, the Commerce Department issues data on the country's trade balance.

Then, on Friday, the Commerce Department issues the important report on retail sales. Wall Street will be looking at the key measure of consumer spending to help determine how much a decline in gas prices could the rest of the economy. Investors will also be looking at whether falling gas prices and stock market gains have given a boost to consumer sentiment, when the University of Michigan releases its preliminary report for October.

EARNINGS

Aside from Alcoa, which is expected to earn 79 cents per share for the third quarter, Wall Street expects to hear from drug maker Genentech Inc., which is expected to turn in a profit of 50 cents a share for the third quarter. Genentech has traded between $75.58 and $100.20 in the past 52 weeks and closed Friday at $83.20. Alcoa has traded between $22.28 and $36.96, closing Friday at $27.74.

On Wednesday, investors will get third-quarter reports from newspaper companies, including USA Today publisher Gannett Co., which is expected to report a profit of $1.11 per share. The company, which traded between $51.65 and $67.98 in the past 52 weeks closed Friday at $56.85.

Also due that day is a third-quarter report from the parent of the Taco Bell, Pizza Hut and KFC fast-food chains. Yum Brands Inc., which is seen as earning 75 cents a share, has traded between $44.21 and $54.70 for the past 52 weeks and closed Friday at $54.

On Thursday, investors will hear from more names that are well known by consumers. Wall Street expects warehouse chain Costco Wholesale Corp. will report a fiscal fourth-quarter profit of 73 cents a share. The stock has traded from $43.76 to $57.94 in the past 52 weeks and closed Friday at $49.48.

PepsiCo is expected to report a third-quarter profit of 86 cents. The stock has traded between $56 and $65.99 in the previous 52 weeks; it closed Friday at $64.42.

Safeway Inc., the food and drug retailer, is scheduled to release third-quarter results the same day. Wall Street contends the company will earn 39 cents a share. The stock has traded between $21.67 and $31.42 in the past 52 weeks and ended Friday at $28.38.

Stock Market Chumps 10-06-06

Mobility Electronics Inc. (MOBE)

Last Trade: 3.15
Trade Time: 10:32AM ET
Change: - 2.23
down 41.45%


Computer peripherals company Mobility Electronics Inc. said Friday it expects its third-quarter revenue to fall short of Wall Street's estimates, and it warned future programs with two customers are in jeopardy.

The company, which makes docking stations and other connectivity and power products for portable computers and mobile devices, said it expects sales to fall between $24.1 million and $24.3 million.

Analysts, on average, are looking for sales of $26.9 million, according to a poll by Thomson Financial.

Mobility said it saw significantly lower sales to the pharmaceutical field trials industry, and a shortfall of about $1.2 million in sales of universal power adapters for portable computers to Targus, a computer accessories maker.

"While we are disappointed with the shortfall in the connectivity and high-power areas, we had another solid quarter with our low-power products," said Charles Mollo, chief executive, in a statement.
The company also said it "does not expect to generate material, if any, revenue going forward through its relationship with Energizer Holdings Inc."

Mobility added its current deal to supply combination AC/DC power adapters for portable computers to computer maker Dell Inc. will likely end soon after the end of the year. The company said it is looking into other options to maintain a relationship with Dell, either through direct programs or alternative distribution channels.