Stock Market Chumps.........10-02-06

Optimal Group Inc. (OPMR)

Last Trade:	8.25
Trade Time:	2:21PM ET
Change:	3.51 (29.85%)

Optimal Sees Internet Gambling Law Having "Significant Negative Impact" on FireOne --

Canadian online payment processing company Optimal Group Inc. said Monday that online gambling legislation passed over the weekend by the U.S. Congress will have a "significant negative impact" on its majority-owned FireOne Group PLC unit.

Congress passed the Unlawful Internet Gambling Enforcement Act of 2006 on Saturday, which when enacted, will prohibit gambling businesses from accepting credit cards, checks and electronic fund transfers to settle online wagers.

FireOne provides payment processing services for the online gambling industry. Optimal holds a 76 percent stake in the company.

Optimal said the its Optimal payments unit is not affected by the act.

The company also said it divested its Optimal services group hardware maintenance and services business. The move will not have a material impact on financial statements.

Keane Inc. (KEA)

Last Trade:	11.76
Trade Time:	2:17PM ET
Change:	2.65 (18.39%)

Keane Shares Slide on Fired Executive, Lowered Outlook

Shares of outsourcing and consulting services company Keane Inc. plunged 17 percent in midday trading Monday in the heels of Friday's lowered outlook and the firing of an executive who was widely seen as the top CEO pick following Brian Keane's resignation in May.

Keane, whose services include information technology consulting and business process outsourcing, fired Richard Garnick, the president of its North American services and global business lines on Friday, for reasons that included a failure to comply with the company's policy on travel expenses and "unauthorized communications inconsistent with the company's interests."

The company also cut its third-quarter earnings and sales outlook to below Wall Street's and its own prior estimates, citing slow revenue growth.

Garnick had been expected to succeed to the role of chief executive, said Credit Suisse analyst Eric Sledgister, who downgraded Keane to "Neutral" from "Outperform."

Citing a Boston Globe article, Sledgister said at issue was a one-day business trip Garnick made in September, where he "discussed potential opportunities with the Carlyle Group should he not get promoted to CEO of Keane."

Garnick also told the Globe that Keane executives confronted him about a recent e-mail exchange with a public relations representative. The exchange followed a Wachovia downgrade of the company, in which the analyst cited concerns that Keane would hire an outside chief executive. Garnick, according to the Boston Globe, asked in an e-mail if there was any "way to get some expanded press to follow-up on this that puts pressure on board to make move?"

Garnick's dismissal, which Sledgister called "another black eye" for the company's leadership, follows the resignation of Brian Keane, the CEO and son of the company's founder, after allegations of sexual harassment.

Keane later settled the complaints, paying $1.14 million to the company's vice president of marketing, who then resigned as part of the deal, as well as an undisclosed amount to an unidentified former employee.

Garnick was the primary executive responsible for overseeing the "One Keane" initiative "whose aim was to transform the firm from a regionally-focused IT services firm with a mostly onshore delivery model into a global entity with offshore expertise, new service offerings, and a vertical focus," according to Sledgister.

Clearly, he added, "it will take some time for the company to appoint a new CEO and for the CEO to hit the ground running with 'One Keane,' things needed at a minimum to restore credibility on the Street."

Keane's shares fell $2.42 to $11.99 in afternoon trading on the New York Stock Exchange, having traded between $10 and $16.50 in the past year.

Keane was also downgraded by KeyBanc analyst Anurag Rana, to "Hold" from "Buy."

"It appears to us that there is some bad blood between Mr. Garnick and the Board of Keane, who is searching for a new chief executive officer; we will not be surprised to see lawsuits being filed by both parties in the future," the analyst wrote, adding that his biggest concern is around the "One Keane" initiative, which had been spearheaded by Garnick.

"We believe that his departure has put the company's transition efforts in disarray and the company might face a tough task in coming out of this hole," he wrote.

LCA-Vision Inc. (LCAV)

Last Trade:	30.78
Trade Time:	2:24PM ET
Change:	10.53 (25.49%)

Shares of LCA-Vision Inc. plunged more than 25% to a fresh 52-week low Monday after the operator of laser vision correction centers slashed its 2006 per-share profit forecast and said its president will resign.

Raymond James took its rating on the company to market perform from strong buy. Analyst John Ransom said that although he expects LCA-Vision to continue outpacing the industry, he also believes the company's recent deceleration could persist at least through early 2007, "...at which point its growth will depend upon aggressive marketing efforts, new center openings, and a more resilient consumer."

"Furthermore, the new void in its marketing leadership presents an added near-term uncertainty," Ransom wrote in a research note.