Morning Commentary

March 10th — Friday Morning

European Markets:

Down slightly to flat;

Stocks that affect the Dow:

AA - should be hurt from the downgrade by Prudential in Aluminum;

JNJ - ROCH believes they have growth potential in healthcare;

MO - announced the spin off of the rest of KFT;

Breaking News:

~Rack selling 7.5M shares at $39;

~Group of investors to bid for UVN;

~Pirate Capital has an 18% stake in in PWEI and they want the company put up for sale;

~LECO - added to the S&P 500 and ANT is deleted;

~AQNT - 7.5M shares priced at $24 with UBS;

~SI - hunting for takeovers;

~ADTN - down big this morning after missing earnings;

Upgrades:

• STE Steris Matrix Research Sell » Strong Buy
  
• UCO Univ Compression Matrix Research Sell » Hold
  
• DPL DPL Inc. Matrix Research Hold » Buy
  
• WY Weyerhaeuser CIBC Wrld Mkts Sector Underperform » Sector Perform $67 » $70
  
• IP Intl Paper CIBC Wrld Mkts Sector Perform » Sector Outperform $36 » $35
  
• CASY Casey's General HSBC Securities Underweight » Neutral $24 » $25.30
  
• CBUK Cutter & Buck Merriman Curhan Ford Neutral » Buy
  
• SU Suncor Energy CIBC Wrld Mkts Sector Perform » Sector Outperform
  
• CALD Callidus Software Piper Jaffray Market Perform » Outperform $6
  
• TI Telecom Italia Citigroup Sell » Hold
  
• SIG Signet Group Deutsche Securities Hold » Buy
  
• CHRT Chartered Semi Thomas Weisel Peer Perform » Outperform
  
• NOVL Novell First Albany Underperform » Neutral
  
• SIG upgraded by DBKS
  
• AED upgraded by UBS
  
• RCL upgraded by UBS with $52.50 Target
  
• AVNX upgraded to strong buy at Raymond James
  
  
  
• DOW Dow Chemical BB&T Capital Mkts Buy $50
  
• SPSS SPSS Inc Jefferies & Co Hold $35
  
• ATR AptarGroup Matrix Research Strong Buy
  
• DIGE Digene Miller Johnson Market Perform $45
  
• CYTC CYTYC Corp Miller Johnson Market Perform $29
  
• SCHN Schnitzer Steel Morgan Stanley Overweight
  
• CMG Chipolte Mexican Grill AG Edwards Hold
  
• TLF Tandy Leather Factory Merriman Curhan Ford Buy
  
• MTN Vail Resorts Deutsche Securities Buy $44
  
• CCL Carnival UBS Buy $65
  
• SGMS Scientific Games William Blair Outperform
  
• SFCC Reiterated buy at Jefferies
  
  
  
• HANS Hansen Natural Longbow Buy $118 » $131
  
• HAR Harman Banc of America Sec Buy $125 » $127
  
• ADLR Adolor Banc of America Sec Buy $25 » $40
  
• AIG American Intl Banc of America Sec Buy $72 » $74
  
• VTS Veritas DGC Jefferies & Co Buy $53 » $58
  
• MCDTA McDATA Kaufman Bros Hold $4.50 » $5
  
• NITE Knight Trading Sandler O'Neill Buy $13.50 » $15
  
• ITG Investment Tech CIBC Wrld Mkts Sector Outperform $50 » $55
  
• RAVN Raven Industries Dougherty & Company Buy $30 » $35
  
• ALOG Analogic Ryan, Beck & Co Outperform $58 » $69
  

Downgrades:

• SHRP Sharper Image Wedbush Morgan Buy » Hold
  
• CASY Casey's General Morgan Keegan Outperform » Mkt Perform
  
• KRON Kronos Jefferies & Co Buy » Hold $47 » $43
  
• MLM Martin Marietta Matrix Research Strong Buy » Hold
  
• DTC Domtar CIBC Wrld Mkts Sector Outperform » Sector Perform
  
• BOW Bowater CIBC Wrld Mkts Sector Outperform » Sector Perform
  
• PDLI PDL BioPharma Deutsche Securities Buy » Hold
  
• AAUK Anglo American Morgan Stanley Overweight » Underweight
  
• FRED Fred's Lehman Brothers Overweight » Equal-weight
  
• JBLU Jetblue Airways Prudential Neutral » Underweight
  
• ELN downgraded by Smith Barney with $10 target
  
• KRN downgraded by Jefferies