Tuesday Stocks to Watch

The market is trading lower in the afternoon. It reversed course from this morning's gain. (SMTX) previously mentioned last Friday is still up about 15% today. It is a $4 stock when it was mentioned. It is now about $4.50. $0.50 jump for a $4 stock is not bad at all. I will mention more if I ever come to another one like (SMTX). I believe this stock has a very good chance to hit $6 in the not soon distant future.

Other up stocks to watch today:
(BIDU)
(SILC)
(GSOL)
(MIVA)
(MFLO)
(NSHA)
(CHM)
(AV)
(CGT)

Small Stock On the Breakout

(SMTX) SMTC CORP, a electronic contract manufacturer, is making a new high today, as well as yesterday when the market was tanking. Volume has picked up in the recent trading days. It is trading around $3.80 up from the low of about $2.40. It is a very small cap stock. It has the potential to hit $10 within 1 year. The PE on the stock is less than 5. The growth rate is over 10 for the industry. This is a gem for many investors.

Wednesday Stocks to Watch

The market is flip-flopping in the afternoon. The trend is still up. The bull is also tiring now. It may need some rest before advancing further in the near future. Keep your eyes on the stocks with strong uptrends and good fundamentals. Here is the list of movers from MarketWatch worthing watching:

Advancers:

Advanced Analogic Technologies Inc.'s (AATI, Trade ) shares rose Wednesday. The U.S. International Trade Commission has ruled in favor of the company in a patent infringement case brought by Linear Technology Corp. (LLTC, Trade ) .

Alcan (AL, Trade ) is reportedly in early stage talks with BHP Billiton (BHP, Trade ) after the Montreal aluminum producer's board urged investors to reject a $27 billion offer from Alcoa (AA, Trade ) late Tuesday.

AllianceBernstein Holding LP said its first quarter net income rose 16.6% as assets under management gained 20%. Quarterly profits hit $78.5 million, or 91 cents a unit. That was up from $65.6 million, or 78 cents a unit, a year earlier. Analysts polled by Thomson Financial had expected $1.07 per unit. First quarter revenue reached $1.04 billion, also up in double-digits. The firm ended the quarter with $741.7 billion in assets. Hedge-fund assets rose 23% to $9 billion.

Amazon.com (AMZN, Trade ) said Tuesday it's buying Brilliant Audio, the largest independent publisher of audio books in the U.S. Terms of the deal were not disclosed.

American Electric Power (AEP, Trade ) was upgraded by Lehman Brothers.

American Technology Corp. (ATCO, Trade ) shares rallied after the company said its LRAD 500 has been selected by the Navy and Army as their acoustic hailing and warning device for small vessels and vehicles.

B&G Foods Inc.'s shares rallied in its stock market debut.

Bristow Group Inc.'s (BRS, Trade ) fiscal fourth-quarter net income grew 54% to $27.4 million, or 91 cents a share, from a year-earlier profit of $17.8 million, or 75 cents a share. The Houston oilfield helicopter transport company's revenue for the quarter ended March 31 grew 14% to $228.7 million from $201.3 million. Wall Street expected fourth-quarter earnings of 64 cents a share on revenue of $218.7 million, according to Thomson Financial.

Crescent Real Estate Equities Co. (CEI, Trade ) said late Tuesday it has agreed to be acquired by funds managed by Morgan Stanley (MS, Trade ) for $22.80 a share, in a deal valued at roughly $6.5 billion including debt.

DaimlerChrysler (DCX, Trade ) shares rallied Wednesday to their highest level in almost eight years after Morgan Stanley reiterated its overweight rating on the stock, citing strength in Daimler's truck business.

Dick's Sporting Goods Inc.'s (DKS, Trade ) fiscal first-quarter earnings jumped 90%, boosted by its February acquisition of Golf Galaxy. The Pittsburgh-based sporting goods retailer had first-quarter earnings of $21.7 million, or 38 cents a share, compared with $11.4 million, or 21 cents, a year earlier. Dick's said revenue for the quarter ended May 5 rose 28% to $823.6 million from $645.5 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 37 cents a share on revenue of $851 million. Dick's affirmed its 2007 guidance, saying it expects earnings of $2.37 to $2.40 a share, and a 1% to 2% increase in same-store sales.

Dow Jones & Co. (DJ, Trade ) shares climbed Wednesday on word the company's controlling Bancroft family was meeting later in the day to discuss Rupert Murdoch's $5 billion buyout offer.

Dycom Industries Inc. (DY, Trade ) reported third-quarter net earnings of $12.4 million, or 31 cents a share. During the year-ago period, the Palm Beach Gardens, Fla.-based provider of specialty contracting services posted a net loss of $6.5 million, or 16 cents a share. Excluding certain gains and charges, earnings were $11.1 million, or 27 cents a share, compared with $8.3 million, or 21 cents a share, a year ago. Revenue rose to $291.6 million from $251.1 million. For the fourth quarter, Dycom said it expects per-share earnings from continuing operations of 29 cents to 34 cents on revenue from continuing operations of $295 million to $315 million.

Eaton Vance Corp. (EV, Trade ) said Wednesday that costs associated with an initial public offering of a $5.8 billion closed-end fund caused its net income to fall in the second quarter. The money management firm said it earned $23.1 million, or 17 cents a share, compared with $39.9 million, or 29 cents a share in the year-ago period. Eaton Vance said second-quarter earnings were reduced by 25 cents a share by expenses associated with the IPO of Eaton Vance Tax-Managed Global Diversified Equity Income Fund.

Forest Laboratories Inc. (FRX, Trade ) and Cypress Bioscience Inc. (CYPB, Trade ) said a Phase III study of the company's milnacipran drug showed significant therapeutic effects in patients with fibromyalgia syndrome. Forest and its licensor, Cypress, anticipate submitting a new drug application for milnacipran around the end of 2007. The pivotal trial studied 1,196 patients with primary pre-defined endpoints evaluating the treatment of the pain associated with fibromyalgia syndrome or the overall treatment of the disease itself.

Fremont General (FMT, Trade ) shares rallied for a second day after iStar Financial Inc. (SFI, Trade ) said Tuesday it would buy the company's commercial real-estate lending business for $1.9 billion in cash.

Hewlett-Packard Co. (HPQ, Trade ) won a seven-year technology and services contract worth as much as $5.6 billion from the National Aeronautics and Space Administration, the company said Wednesday.

Memc Electronic Materials Inc.'s (WFR, Trade ) shares rose Wednesday. Standard & Poor's said it would add the company to the S&P 500, replacing Kinder Morgan Inc., on a date to be announced. Also, Nationwide Health Properties Inc. (NHP, Trade ) will replace Memc Electronic in the S&P MidCap 400 Index on a date to be announced. Kinder Morgan is being acquired by an investment group led by Chairman and Chief Executive Richard Kinder.

Men's Wearhouse Inc.'s (MW, Trade ) fiscal first-quarter net income climbed 42% to $40.9 million, or 75 cents a share, from $28.9 million, or 53 cents a share, a year earlier. The April acquisition of After Hours Formalwear contributed 8 cents to the period's earnings, after acquisition-funding costs. Total sales for the Houston retailer of men's apparel grew 14% to $496.1 million from $434.6 million, as U.S. same-store sales declined 1.3%. Canadian same-store sales increased 5.8%.

Medtronic (MDT, Trade ) gained more than 6% in early trading Wednesday after posting a rise in its fiscal fourth-quarter profit that was buoyed by higher sales of its defibrillators and pacemakers.

Omnicell Inc. (OMCL, Trade ) said that it has priced an underwritten public offering of 3.9 million shares at $21.50 a share.

Omnicom Group Inc. (OMC, Trade ) said its board approved a 2-for-1 stock split and boosted its quarterly dividend 20% to 15 cents. Omnicom, a New York marketing and corporate-communications company, recently had 165.4 million shares outstanding. The company will distribute the stock split June 6 to shareholders of record on the same date. The increased dividend will be paid July 5 to shareholders of record on June 6.

Pacific Sunwear of California Inc. (PSUN, Trade ) named Sally Frame Kasaks as chairwoman and chief executive officer. Kasaks has served as interim CEO since October 2006, and has been a director since 1997. Kasaks' employment agreement extends through the completion of the fiscal year ending Jan. 31, 2010, the Anaheim, Calif.-based retailer said.

Stride Rite Corp. (SRR, Trade ) shares rocketed higher Wednesday after discount shoe retailer Payless ShoeSource Inc. (PSS, Trade ) said it will buy the company for roughly $800 million in cash as part of a bid to move up market.

Priceline.com Inc. (PCLN, Trade ) raised the high end of its guidance for 2007 gross travel bookings to $4.25 billion. The Norwalk, Conn., online travel-bookings provider had earlier forecast 2007 gross travel bookings of $4.1 billion to $4.2 billion. Priceline.com also reconfirmed its earnings guidance, saying it still expects 2007 pro forma net income of $2.90 to $3.10 a share. The company added that it expects 2007 earnings at or slightly above the high end of guidance, if full-year gross travel bookings come in at the high end of the revised range of guidance.

SEI Investments Co. (SEIC, Trade ) Wednesday declared a 2-for-1 stock split, payable June 21 to shareholders of record as of June 11. The Oaks, Pa.-based asset manager also said it has approved a $50 million increase in its stock repurchase program.

SenoRx (SENO, Trade ) shares jumped after the Aliso Viejo, Calif.-based medical device maker said it has received 510(k) clearance from the Food and Drug Administration to market its Multi-Lumen Radiation Balloon Applicator for brachytherapy. The device is used to provide brachytherapy to the surgical margins following lumpectomy for breast cancer. The company expects to launch of the product in early 2008.

Shanda Interactive Entertainment Ltd. (SNDA, Trade ) reported first-quarter net earnings of 448 million yuan ($58 million) or 6.14 yuan (80 cents) per American Depositary share, up from 11.8 million yuan, or 0.16 yuan per ADS, in the year-ago period. Excluding a net gain from the disposal of Sina shares, Shanda earned 36 cents a share. The Shanghai-based media company said revenue in the three months ended March 31 rose 56% to 532.3 million yuan from 341.4 million yuan in the comparable period last year.

Talbots Inc.'s (TLB, Trade ) fiscal first-quarter net income dropped to $5.24 million, or 10 cents a share, from $27.4 million, or 51 cents a share, a year earlier. The retailer said Wednesday the latest quarter was hurt by bad weather in April, the Easter holiday shift and a broad-based consumer slowdown. The Hingham, Mass., company earned 23 cents a share excluding 13 cents a share in acquisition related costs, and said first-quarter profit totaled 32 cents a share excluding a loss of 9 cents a share related to its J. Jill brand. Same-store sales for the first quarter fell 3.5% on weaker-than-anticipated customer response to Talbot's casual merchandise.

Target Corp. (TGT, Trade ) said first-quarter earnings rose 18% to $651 million, or 75 cents a share, from $554 million, or 63 cents, a year earlier. The Minneapolis-based retailer said total revenue rose 9.2% to $14.04 billion from $12.86 billion in the year-ago period, helped by a 4.3% increase in same-store sales, contributions from new stores and its credit-card operations. Analysts polled by Thomson Financial expected on average, first-quarter earnings of 71 cents a share on revenue of $14.17 billion. Target said it bought back 9.2 million shares in the first quarter for $549 million.

Wet Seal (WTSLA, Trade ) posted a $7.6 million, or 7 cents a share, profit in the first quarter ending May 5, with sales up to $138 million from $125 million. Analysts polled by Thomson Financial expected earnings of 6 cents a share on revenue of $139 million. Comparable-store sales rose 2.7% during the quarter. It lost $14 million, or 22 cents a share, in last year's first quarter. It expects low single-digit rise in comparable-store sales in May and the second quarter. Earnings are seen between 5 cents and 8 cents a share in the second quarter on sales between $147 million and $152 million.

Decliners

Alaska Air Group (ALK, Trade ) said Wednesday its adjusted net income for the second quarter of 2007 and the full-year would be below 2006 amounts, taking into account fuel costs and revenue trends. Alaska Air also said it would sell four MD-80 aircraft in the second quarter, when capacity at its Alaska Air unit would rise 5%. Unit costs at Alaska Air are expected to fall in the second quarter by 4% to 7.5 cents, excluding fuel, the company said.

Analog Devices (ADI, Trade ) reported a 14% profit decline in the second quarter and said current-quarter earnings will be below market estimates.

Autozone (AZO, Trade ) was downgraded to hold from buy at Citigroup. "While we still see fair value at $145 over the next 12 months, we believe the 9% price appreciation potential from present levels isn't sufficient enough to stomach the macro headwinds ahead," the broker said.

CSS Industries Inc. (CSS, Trade ) shares dropped after the Philadelphia-based maker of gift wrap and greeting cards reported a fiscal fourth-quarter net loss of $5.6 million, or 52 cents a share, vs. a year-ago net loss of $7.67 million, or 73 cents a share. Revenue fell to $45.3 million from $52.2 million. For fiscal 2008, the company expects earnings of $2.45 to $2.60 a share.

Dillard's Inc. (DDS, Trade ) said that its first-quarter net income decreased to $42.9 million, or 53 cents a share, from $61.3 million, or 77 cents a share, a year ago. Analysts had been expecting the company to produce earnings of 73 cents a share, according to data compiled by Thomson Financial. Sales dipped to $1.76 billion, from $1.84 billion last year. Sales of shoes significantly outperformed the average company performance during the quarter, while sales of juniors' and children's clothing declined significantly more than trend.

GameStop Corp.'s (GME, Trade ) fiscal first-quarter net income more than doubled to $24.7 million, or 15 cents a share, from $11.7 million, or 7 cents a share, a year earlier. The latest period included debt retirement costs of 3 cents a share. The Grapevine, Texas, video game retailer said sales for the quarter ended May 5 climbed 23% to $1.28 billion from $1.04 billion, as same-store sales grew 15.3%. On average, analysts polled by Thomson Financial expected earnings of 16 cents a share on revenue of $1.25 billion. Analyst estimates typically exclude items. GameStop expects second-quarter earnings of 7 cents to 8 cents a share and a same-store sales increase between 16% to 18%. Wall Street estimates earnings of 8 cents a share. GameStop raised its full-year earnings forecast to $1.39 to $1.42 a share, from $1.37 to $1.40 a share.

Nationwide Financial (NFS, Trade ) was downgraded to neutral from buy at UBS, with the broker saying its shares have outperformed rival life insurers this year. "Trading at around 1.6 times price-to-book, NFS seems fairly value if credited for a 13% return-on-equity by 2009 and a little rich based on sub-13% return-on-equity for 2007 and 2008," the broker said.

Northfield Laboratories (NFLD, Trade )said in a Phase III trial of red blood cell substitute PolyHeme, the difference in mortality at 30 days between patients who received PolyHeme and control patients who received standard care was not statistically significant.

Pep Boys (PBY, Trade ) reported first-quarter earnings from continuing operations before cumulative effect of change in accounting principle of $3.22 million, or 6 cents a share. During the same period a year ago, the company posted a net loss from continuing operations of $867,000, or 2 cents a share. The Philadelphia-based automotive aftermarket retail and service chain posted revenue of $546 million vs. $556.6 million.

Possis Medical Inc. (POSS, Trade ) shares slid after the Minneapolis-based medical device maker reported fiscal third-quarter net earnings of $44,000, or breakeven a share, vs. a year-ago net loss of $277,608, or 2 cents a share. Excluding items, the company posted a profit of 5 cents vs. 3 cents last year. Revenue rose to $16.2 million from $15.2 million. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 5 cents on revenue of $17.2 million.

RSC Holdings Inc.'s (RRR, Trade ) shares fell in the company's initial public offering.

TRM Corp. (TRMM, Trade ) shares fell after the Portland, Ore.-based provider of ATM services named Chief Operating Officer Richard Stern as president and chief executive Jeffrey Brotman will remain with the company as non-executive chairman.

Shares of online advertising company ValueClick Inc. (VCLK, Trade ) were downgraded to neutral from outperform by Credit Suisse analyst Heath Terry on Wednesday.

Vion Pharmaceuticals Inc. (VION, Trade ) suspended the Phase III trial of its Cloretazine drug for patients with relapsed adult myelogenous leukemia, pending a detailed review of data from the trial. The New Haven, Conn., biopharmaceutical company said a review of interim data by the trial's independent data safety monitoring board found that any advantage in complete remission could be compromised by the observed on-study mortality to date. Vion said data from the trial, which included 210 patients, will remain blinded while a complete medical review is conducted.

Monday Stocks to Watch

The market is trading higher in the afternoon. Looks like the action came from the bigger cap market. The tech market is yet to be catching with the uptrend. Volume is higher on the NYSE. Nasdaq volume is somewhat lacking.

Movers for the Day:
(VCLK) - reaction from (AQNT)
(AMZN) - new high for the stock
(FWLT) - mid cap stock with strength
(TSL) - China solar play with good earning
(LUNA) - very speculative play, I would avoid this one.
(DNDN) - alive from the grave.

Friday Stocks to Watch

Movers from MarketWatch:

Advancers

99 Cents Only Stores (NDN) reported third-quarter earnings of $8.9 million, or 13 cents a share, up 31% from the year-ago period. The City of Commerce, Calif., discount retailer posted revenue for the three months ended Dec. 31, 2006, of $302.1 million vs. $278.8 million. The company also said that it filed its Form 10-Q for the quarter, bringing it current with its Securities and Exchange Commission filings.

Aquantive Inc. (AQNT) agreed to be acquired by Microsoft Corp. for $66.50 a share, a premium to Thursday's close at $35.87. Microsoft (MSFT) expects the deal for Aquantive, a Seattle digital-marketing-technology provider, to be completed in the first half of fiscal 2008.

Buffalo Wild Wings (BWLD) declared a 2-for-1 stock split, payable June 15 to holders of record June 1. The company also is acquiring nine of its franchised properties in the Las Vegas area for $26 million.

Dr Reddy's Laboratories (RDY) swung to profit of $75 million for the fourth quarter ended March 31 from a $5 million loss in the year-earlier quarter. Revenue more than doubled to $361 million.

Focus Media Holding (FMCN) first-quarter net income rose 73% to $16.3 million, or 15 cents an American depositary share, from a year earlier. Excluding stock-based compensation and amortization from acquisitions, the latest earnings were 21 cents per ADS. Revenue for the Shanghai advertising company jumped 76% to $58.1 million.

General Electric Co. (GE) is close to a final agreement to sell its plastics division, according to a media report. After an extended auction involving a number of bidders, two remain: Saudi Basic Industries Corp. of Riyadh and Basell of Hoofddorp, Netherlands, The Wall Street Journal reported on its Web site, citing people familiar with the matter.

Home Solutions of America Inc. (HSOA) shares rallied after the Dallas-based company said its Fireline Restoration Inc. subsidiary has entered into a joint venture agreement with Blue Diamond Construction Inc. to develop and build residential condominiums and mixed use retail space in New York City. The contracts are worth more than $100 million to Fireline, the company said. Construction is scheduled to begin during the third quarter and should be completed by 2009. Fireline is expected to complete roughly $12 million in work under the contract this year, which the company said was not included in its previously announced backlog.

Intuit (INTU), maker of TurboTax and other financial software, reported third-quarter financial profit and sales beat analysts' expectations. See full story.

Kindred Healthcare Inc. (KND) will join the S&P MidCap 400, replacing Martek Biosciences Corp. (MATK). See full story.

Mattel (MAT) authorized a $250 million increase its stock-buyback program.

TierOne Corp., (TONE) a Lincoln, Neb., lender, agreed to be acquired by CapitalSource (CSE) late Thursday it's agreed to buy for stock and cash valued at $34.46 a share, or $652 million, based on Thursday's closing prices.

Trump Entertainment Resorts (TRMP) said its strategic committee recently received preliminary and conditional indications of interest from parties proposing to acquire the company. See full story.

Verizon (VZ) was upgraded to buy from sell at Citigroup, which lifted its price target on the telecommunications giant to $48 from $33.

Decliners

CalAmp Corp. (CAMP) shares tumbled after the Oxnard, Calif.-based provider of wireless communications products reported fiscal fourth-quarter net earnings of $732,000, or 3 cents a share, vs. $3.47 million, or 15 cents a share, in the year-ago period. Adjusted earnings came in at 8 cents a share in the period ended Feb. 28. Revenue rose to $57 million from $47.8 million. CalAmp expects a fiscal first-quarter net loss of 6 cents to 9 cents a share on revenue of $44 million to $47 million. Excluding items, the company expects per-share results in a range of breakeven to 2 cents.

First Charter Corp. (FCTR) Chief Financial Officer Charles Caswell resigned but will stay on through Aug. 17 to assist in the transition of his role. The Charlotte, N.C., financial-services-holding company named Controller Sheila Stoke interim principal financial officer.

Hurco Cos. (HURC) shares dropped after the Indianapolis-based industrial technology company reported fiscal second-quarter net earnings of $4.68 million, or 73 cents a share, up from $3.91 million, or 62 cents a share, in the year-ago period. Revenue rose to $42.5 million from $36.9 million. Two analysts polled by Thomson Financial were expecting a per-share profit of 78 cents.

Juniper Networks (JNPR) was downgraded to hold from buy at Citigroup, which said that fundamental expectations are beginning to look extended and incremental catalysts at the networking-equipment company appear to be waning.

Sonic Solutions Inc., (SNIC) the Novato, Calif., software company, reported fiscal fourth-quarter net revenue of $38.1 million and said it expects first-quarter revenue of $33 million to $35 million. The company's internal review of its stock-option-grant practices and related accounting remains in progress. Sonic said it will record additional material charges for stock-based compensation expense and will restate previous financial statements. It said it can't yet estimate the size of the charges.

UAL Corp., (UAUA) parent of United Airlines, has reduced 2007 mainline domestic-capacity growth by about 2% from planned levels. The reduction enables the company to meet increasing international demand and optimize its revenue performance, the Chicago carrier said.

Vasogen Inc. (VSGN) shares slid after the Mississauga, Ontario-based biotechnology company said it has entered in agreements to raise $16 million through the sale of its common shares for $3.25 each. Under the terms of the purchase agreements, Vasogen will also issue 5-year warrants to purchase an additional 3.7 million shares at an exercise price of $3.16 each. If all of the 3.7 million warrants are exercised, the company will receive an additional $11.7 million.

The market is trading relatively flat in the afternoon. The bull is still in place. Keep a list of potential buys on your watch list. Look for breaking out stocks such as the list I found from MarketWatch:

Advancers

24/7 Real Media, (TFSM) the New York digital marketing company, definitively agreed to be acquired for $11.75 a share by WPP Group. (WPPGY) Real Media shares closed at $11.26 on Wednesday.

Acxiom Corp. (ACXM) shares rose after the Little Rock, Ark., provider of information-management solutions, definitively agreed to be acquired for $27.10 a share cash, or $2.24 billion, by Silver Lake and ValueAct Capital, the companies said late Wednesday. The deal price is a more than 14% premium over Acxiom's closing price Wednesday of $23.67.

BreitBurn Energy Partners L.P. (BBEP) plans to pay $100 million to buy oil properties in Florida from Calumet Florida, L.L.C., a Delaware limited liability company owned by Vulcan Resources Florida, Inc. The deal will immediately add to distributable cash flow per unit and will allow the Los Angeles firm to increase its quarterly distribution next quarter.

Delta Air Lines' (DAL) shares rose after analysts at Morgan Stanley and Lehman Brothers initiated coverage of the carrier's newly issued shares of at their highest levels, outperform and overweight respectively, citing momentum and cost controls.

Dusa Pharmaceuticals Inc. (DUSA) shares leapt after the Wilmington, Mass.-based company announced that the Food and Drug Administration has granted orphan drug designation for Levulan photodynamic therapy for the treatment of esophageal dysplasia, a disease that occurs in some patients with Barrett's esophagus, a leading cause of esophageal cancer. With the orphan drug designation, Dusa is entitled to seven years of marketing exclusivity for Levulan for the orphan indication.

Enersys (ENS) said it expects fiscal fourth-quarter earnings of 22 cents a share on revenue of $414 million. Analysts polled by Thomson Financial expect the Reading, Pa., maker of industrial batteries to post 18 cents.

Gerber Scientific Inc. (GRB) shares surged after the South Windsor, Conn.-based company said it now expects fiscal fourth-quarter net earnings of 22 cents to 26 cents a share on revenue for $153 million to $155 million. Gerber, which makes equipment and software for sign-making and specialty graphics, apparel and flexible materials, had previously forecast a fourth-quarter per-share profit of 14 cents to 20 cents on revenue of $145 million to $150 million.

Given Imaging Ltd. (GIVN) said the U.S. Food and Drug Administration cleared it to market the PillCam SB 2 video capsule and related software. The SB 2 is Given's newest version of a product with which a doctor can view a patient's small bowel.

Longs Drug Stores Corp.'s (LDG) fiscal first-quarter net income fell 17% to $13 million, or 34 cents a share, from a year earlier. Earnings from continuing operations were 42 cents a share, including charges of 14 cents to divest eight California stores. The Walnut Creek, Calif., chain's revenue for the quarter ended April 26 increased 5.6% to $1.3 billion.

MGM Mirage (MGM) was upgraded to overweight from neutral weight at Prudential Equity, which said a roughly 16% drop in shares since February has created a buying opportunity.

Nexstar Broadcasting Group Inc. (NXST) said it's reviewing strategic alternatives, including, but not limited to, the sale of the company. The Irving, Texas, television station owner said it has hired Goldman, Sachs & Co. to help it conduct the review.

PetSmart Inc. (PETM) reported first-quarter earnings more than doubled to $106.7 million, or 78 cents a share, from the year-ago period. Excluding a benefit of 47 cents a share from sale of some shares in MMI Holdings Inc., PetSmart earned 34 cents in the latest quarter. Revenue at the Phoenix pet-products provider rose to $1.11 billion from $1.01 billion, while sales at stores open at least a year rose 4%.

J.C. Penney (JCP) reported first-quarter net income rose to $1.04 a share from 89 cents in the year-earlier period. The retailer's sales rose 3.1% to $4.35 billion. Analysts surveyed by Thomson Financial expected earnings of $1.03 a share.

Spartan Stores Inc. (SPTN) reported fourth-quarter earnings of $7.2 million, or 34 cents a share, up 36% from the year-ago period. Revenue at the Grand Rapids, Mich., grocery retailer rose to $559.5 million from $452.8 million.

Stanley Inc.'s (SXE) fiscal fourth-quarter net income jumped to 20 cents a share from less than a penny a share a year earlier. The Arlington, Va., provider of information-technology services said revenue for the period ended March 31 increased 39% to $116.6 million.

Sun Microsystems Inc. (SUNW) authorized the buyback of as much as $3 billion of its common shares.

Technical Olympic USA Inc.(TOA) shares rose after the Hollywood, Fla.-based homebuilder it has received a commitment from Citigroup Global Markets Inc. and certain affiliates to establish a $250 million first lien term loan facility and a $250 second lien term loan facility. Technical Olympic also agreed to reduce its existing $800 million revolving loan facility by $100 million. The homebuilder expects to use the loans to fund any settlements related to its Transeastern joint venture.

Warnaco Group Inc.'s (WRNC) board approved a new 3-million-share buyback. It's in addition to the 978,915 shares remaining under its current authorization.

Decliners

BT Group (BT) reported that for the fourth-quarter ended March 31, adjusted pretax profit rose 10% to 695 million pounds, with the U.K. fixed-line telecom operator's revenue up 3% to 5.29 billion pounds. Traditional revenue dropped 3% but a 32% jump in broadband revenue and a 6% improvement in networked IT services led to an improving top line.

Caterpillar (CAT) was downgraded to hold from buy at Stifel Nicolaus. The firm said it doesn't expect shares of the company to participate in the growth-stock led market it expects in the next six to 12 months. "We see storm clouds for consumer spending that pressure economy-sensitive stocks in the seasonally weak May to October period due to housing asset price wealth effects and refinancing pressure," the analyst wrote. Caterpillar's pretax earnings margin "is beginning to level as it has often done at this point in the average of the past four cycles," according to the research.

Doral Financial Corp. (DRL) agreed to sell $610 million of stock for 63 cents a share. The shares will be sold to a newly-formed group -- Doral Holdings -- owned by investors including Bear Stearns Merchant Bank and Goldman Sachs. Following the transactions, the new group will own around 90% of Doral Financial, with existing shareholders owning the remaining 10%. The investment will provide capital to repay a $625 million floating rate note and to fund the previously-announced settlement of a class-action lawsuit and shareholder litigation.

Dow Jones & Co. (DJ) shares slipped after the board of the New York publisher held its regular meeting on Wednesday and took no action as the company's controlling family mulled a $60-a-share takeover offer from News Corp., controlled by the media executive Rupert Murdoch, The Wall Street Journal Online reported. Dow Jones is the owner of MarketWatch, the publisher of this report.

Flow International Corp. (FLOW) shares slipped after the Kent, Wash.-based maker of industrial waterjet machines said its Board has completed its review of strategic alternatives and has determined that the company's best alternative for optimizing shareholder is to "continue executing its strategic plan." Flow International also said it hopes to complete its search for a successor for retiring Chief Executive Stephen Light soon.

Micron Technology Inc. (MU) said it plans to offer $1.1 billion of unsecured convertible senior notes due June 1, 2014. The Boise, Idaho, maker of flash-memory products plans to grant the underwriters an option on $165 million more notes if demand for the issue requires.

Napster Inc. (NAPS) said its fiscal fourth-quarter net loss deepened to 20 cents a share from a dime in the year-earlier period. For the quarter ended March 31, revenue at the digital-music company grew more than 8% to $29.1 million.

National Grid Plc, (NGG) the U.K. utility operator, agreed to sell its U.S. wireless-infrastructure business for $290 million to M/C Venture Partners and Wachovia Capital Partners. National Grid also reported fiscal 2007 earnings fell 64% on 2% lower revenue.

New York Times Co. (NYT) reported that in April, advertising revenue from continuing operations fell 3.6% from the year-earlier month while companywide revenue on the same basis fell 2.2%.

Opnet Technologies Inc.'s (OPNT) fiscal fourth-quarter net income rose 60% to $1.58 million, or 7 cents a share, from a year earlier, as its operating-profit margin widened. Revenue at the Bethesda, Md., provider of management software rose 14% to $24.4 million.

Opnext (OPXT) said it swung to a $1.5 million, or 3 cents a share, profit in the fourth quarter ending March 31, with revenue rising up 42% to $65.4 million. It lost $2.8 million, or 5 cents a share in the year-ago quarter. Excluding stock compensation expense it would've earned $5 million, or 9 cents a share. First-quarter revenue is seen between $67.5 million and $71.5 million and longer-term gross margins should approach 40%, excluding stock-based compensation expense.

Salesforce.com Inc. (CRM) swung to first-quarter profit from a loss in the year- earlier period and beat analysts' sales forecasts.

Wednesday Stocks to Watch

These stocks are worth watching from MarketWatch:

Advancers

Agile Software (AGIL) shares jumped after the company agreed to be acquired by Oracle (ORCL) for $495 million.

AMR Corp. (AMR), the parent company of American Airlines, was upgraded to buy from hold at Soleil Securities.

Barnes & Noble Inc., (BKS) the New York book retailer, added as much as $400 million to its buyback plan. Some $27 million remains from the previous authorization.

Bausch & Lomb (BOL) agreed to be acquired for $65 a share by the private-equity firm Warburg Pincus. The deal is valued at $4.5 billion, including Warburg Pincus's assumption of $850 million of Bausch & Lomb debt.

Citigroup (C) shares rose after ESL Investments, a hedge fund run by Edward Lampert, said it secured a big stake -- 10.9 million shares valued at more than $605 million -- in the banking giant earlier this year, according to a Securities and Exchange Commission filing. The stake was filed with the SEC on Feb. 14 but was confidential. That confidentiality expired on Tuesday.

CommVault Systems Inc.'s (CVLT) fiscal fourth-quarter net income surged to $1.16 a share, reflecting a tax benefit, from 13 cents in the year-earlier period. The adjusted latest earnings were 14 cents a share. The Oceanport, N.J., provider of storage and data management software said revenue for the quarter ended March 31 increased 32% to $42.6 million.

Compuware Corp. (CPWR) reported fiscal fourth-quarter earnings of $67.5 million, or 21 cents a share, up 20% from the year-ago period. The Detroit software company's revenue in the three months ended March 31 rose to $313 million from $309.5 million.

Continental Airlines (CAL) was upgraded to hold from sell at Soleil Securities.

Copa Holdings (CPA) reported first-quarter earnings of $48.6 million, or $1.12 a share, up from a year-ago profit of $32.3 million, or 75 cents a share. The Panama City-based parent company of Copa Airlines and Aero Republica said its revenue rose 26.7% in the quarter to $242.7 million.

East Penn Financial Corp. (EPEN) shares rose after the company agreed to be acquired by Harleysville National Corp. (HNBC) for $92.7 million. The deal values East Penn shares at roughly $14.50 each.

H&E Equipment Services Inc. (HEES) agreed to acquire J.W. Burress Inc., which distributes construction equipment, for about $108.7 million and debt assumption of about $400,000. The Baton Rouge, La., equipment services company said Wednesday it could pay $12.9 million more over three years if Burress remains a Hitachi distributor. H&E doesn't expect Burress will continue to represent Hitachi. H&E added it expects the transaction will add to 2007 earnings. It also expects to complete the acquisition no later than July 31, subject to the completion of Burress' 2006 audit and other customary closing conditions.

International Assets Holding Corp. (IAAC) shares surged after the New York-based financial services company reported fiscal second-quarter net earnings of $681,000, or 8 cents a share, vs. $1.09 million, or 13 cents a share, in the year-ago period. Adjusted earning before interest, taxes, depreciation and amortization rose to $4.49 million from $3.26 million last year. Revenue climbed to $14.8 million from $9.02 million a year ago.

Jack in the Box Inc. (JBX) second-quarter profit rose 25% to $27.2 million, or 80 cents a share, as revenue grew 6.8% to $660.7 million. Analysts polled by Thomson Financial were expecting 70 cents on revenue of $663 million. Same-store sales rose 6.4% and its operating-profit margin improved to 18.3% from 17.6%, helped by lower utility costs. The restaurant group also raised its earnings estimates for 2007.

O'Charley's Inc.'s (CHUX) fiscal first-quarter profit rose 9.6% to $7.9 million, or 33 cents a share, from a year earlier. Excluding charges related to manufacturing equipment, the Nashville restaurant company earned 36 cents a share in the latest period. Revenue for the quarter ended April 22 climbed 2.1% to $312.9 million. Analysts polled by Thomson Financial expected earnings of 31 cents on revenue of $314 million.

Quanex Corp. (NX) said its board plans to review the strategic alternatives for its Building Products Group. The company said the options could include a tax-free spin-off to shareholders, a sale or joint venture. Houston-based Quanex said the business generated sales of about $1.1 billion and operating income of about $135 million in the year ended Oct. 31. The company has hired Lazard Freres & Co. to serve as its financial advisor.

Tecumseh Products Co. (TECUA) shares rallied after the maker of hermetic compressors reported a first-quarter net loss of $16.8 million, or 91 cents a share, vs. a net loss of $12.6 million, or 68 cents a share, in the year-ago period. Revenue rose to $460.5 million from $446.1 million. Tecumseh expects the operating results of all three of its business segments to improve in the second quarter of 2007 when compared to prior-year results.

Shares of WCI Communities Inc. (WCI) rose after the Bonita Springs, Fla., builder said it sent a letter to shareholders seeking support to ensure a fair sale process. The letter said the company has entered into a number of confidentiality agreements with entities that have expressed an interest in acquiring WCI. The letter said the election at an upcoming June 15 annual shareholder meeting of a slate of directors backed by financier Carl Icahn, who has made a $22-a-share offer for WCI, "could jeopardize the sale process or make the process less than fair and open." The company said it continues to believe it could get a better alternative to Icahn's offer that could provide shareholders with greater value than $22 a share

Decliners

Air France-KLM (AKH) was downgraded to neutral from buy at UBS. "With the results on May 24, we prefer to wait and see how it has fared in the fourth quarter, after which we will readdress our view," the broker said. It's predicting operating profit of 1.22 billion euros, which it said was slightly above consensus.

Applied Materials Inc. (AMAT) second-quarter net income was flat with a year earlier, while its sales of chip-equipment rose on demand from makers of consumer electronics. See full story.

Arcelor Mittal, (MT) the world's largest steelmaker, reported that first-quarter net income rose 40% on 17% higher sales. The company also sees higher second-quarter earnings, driven by higher prices.

Deere & Co.'s (DE) fiscal second-quarter earnings fell 16% to $623.6 million, or $2.72 a share, from a year earlier, when results were boosted by $227.6 million from discontinued healthcare operations. Earnings from continuing operations were $2.72 a share, up from $2.17. The Moline, Ill., farm-machinery maker said its revenue for the quarter ended April 30 rose 5% to $6.88 billion. Analysts polled by Thomson Financial expected revenue of $6.46 billion.

Dolby Laboratories Inc. (DLB) said it has filed a shelf registration covering the sale of as many as 8 million Class A common shares by an affiliate of founder and Chairman Ray Dolby. The selling holder has commenced an offering of 7 million shares, and the underwriters have an option to purchase as many as 1 million more shares.

DTS Inc. (DTSI) swung to a first-quarter net loss of 4 cents a share from a year-earlier profit of 38 cents. The latest earnings from continuing operations came in at 11 cents a share. The Agoura Hills, Calif., digital-technology company's revenue fell to $12.6 million from $20.7 million.

Federated Department Stores (FD) swung to first-quarter profit of 8 cents a share from a year-earlier loss of 9 cents. The latest earnings from continuing operations were 11 cents. Sales were about flat at $5.92 billion. The retailer cut the bottom end of its estimate of second-quarter adjusted earnings. It now expects 35 to 45 cents, compared with its prior estimate of 40 to 45 cents.

Gaming Partners International Corp. (GPIC) shares slid after the Las Vegas-based maker of gambling products reported fourth-quarter net earnings of $115,000, or a penny a share, vs. net earnings of $2.1 million, or 26 cents a share, in the year-ago period. Revenue in the quarter ended Dec. 31 fell to $16.1 million from $16.2 million in the same period last year. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 18 cents.

GoAmerica Inc. (GOAM) shares slumped after the Hackensack, N.J.-based provider of relay and wireless communications for the hearing impaired reported a first-quarter net loss of $765,000, or 35 cents a share, vs. a net loss of $1.08 million, or 51 cents a share, in the year-ago period. Revenue rose to $4.31 million from $1.64 million last year.

Kinder Morgan Management LLC (KMR) priced a public offering of 5.7 million shares, representing limited liability company interests. The underwriter, Citi, has an option on as many as 855,000 more shares if demand for the offering is sufficient.

Limited Brands, (LTD), the owner of Bath and Body Works and Victoria's Secret, was cut to hold from buy at Citigroup, which cited deteriorating fundamentals at Victoria's Secret, compounded by difficult same-store-sales comparisons in the second half of the year. The downgraded follows news from the company after Tuesday's closing bell that its earnings won't meet previous expectations and that i plans to sell part of its Express Stores division and consider options for its namesake stores.

Navios Maritime Holdings Inc. (NM) first-quarter net income available to common-share holders rose to 13 cents a share from 11 cents a year earlier. The shipping company's revenue more than doubled to $101.8 million.

Photronics Inc.'s (PLAB) fiscal second-quarter net more than doubled to 30 cents a share from 12 cents a year earlier. The most recent quarter ended April 29 includes a net benefit of 16 cents as the Brookfield, Conn., semiconductor-equipment company resolved and settled U.S. and foreign tax liabilities. Sales fell 8.2% to $109.6 million.

Salary.com Inc. (SLRY) reported fiscal a fourth-quarter net loss attributable to common-stock holders widened to 44 cents a share from 31 cents in the year-earlier period. Excluding items, the loss was flat at 11 cents. The Waltham, Mass., provider of compensation-management services said revenue in the three months ended March 31 rose 42% to $6.4 million.

Wireless Ronin Technologies' (RNIN) shares tumbled after the Minneapolis-based company announced that it has filed a registration statement covering an offering of 4 million shares of common stock. Of the total, Ronin plans to offer 3 million shares and a selling shareholder plans to offer 1 million shares.

Friday Stocks to Watch

The market is trading higher in the afternoon reversing yesterday's sell-off. The strength was contributed to the lower than expected core PPI (excluding food and energy). The key for next week is watch the CPI number before open on Monday. I believe the strength of the market is still there. Also avoid risky and speculative stocks like (DNDN). (DNDN) was mentioned a few days before the crash. These stocks are harmful to your profolios. Stay with the bigger market cap companies, over 1 billion dollars. Stocks such as (FWLT), (MDR), (BWLD), and (CROX) are the stocks to accumulate.

Stocks On the Move:
(FWLT) - continues its up march.
(VSR) - continue from yesterday uproar. It is a small cap but with a lot of strength. I have placed a small bet on this one.
(LFC), (SNP), (GSH) - China related stocks are mostly up on the day.
(IDSA) - up on no news.

Monday Stocks to Watch

The market is trading slightly higher in the afternoon. There were a lot of Merger and Acquisition deals announced this morning, such as (AA) is buying (AL), and BEAS is buying (AH). As long as more M&A deals coming to the market, I believe the market is going higher.

Stocks on the moves are:
(SFLY) - new deal with Target
(SPSS) - news on deal
(CROX) - continuation from last week's earning
(SLP) - up on no news
(VOXW) - volatile stock with the stock up over $5 on one of the days last week.
(IPSU) - up on no news

Thursday Stocks On the Move

The market is continuing its uptrend march with record highs. Nasdaq is catching up with the DOW. Most of the big cap stocks are big movers recently. Stay with the strong stocks.

(HAN) - No news but heavy volume, take-over candidate?
(HNSN) - FDA approved on its product
(NVEC) - Move on the earning news
(BUF) - FDA approved company product
(AXR) - Move with no news
(OMG) - Great earning report