Banc of America Securities initiated coverage of Akamai Technologies (AKAM-$36.35) with a “Neutral” rating and $42 price target. Shares of the leading provider of content-delivery solutions have sold off about 28 percent in the last year; nonetheless, as there are no obvious revenue catalysts on the horizon and the shares trade near their fair value, Banc of America believes a “Neutral” rating is appropriate for now.Paulette Miniter, columnist for SmartMoney.com, writes that online jewelry auctioneer Bidz.com (BIDZ-$19.94) may offer an attractive value proposition, trading at more than a 40% discount to the S&P 500—a diamond in the rough.
Chip maker Broadcom Corp. (BRCM-$27.83) said it would pursue an injunction against Qualcomm Inc. (QCOM-$40.53) to stop its rival wireless chip developer from making, using, selling or developing cellular chips based on contested patents.
Shares in Circuit City Stores (CC-$6.51) dropped to a four-year low on Thursday after JPMorgan predicted the consumer-electronics chain may not find a buyer to turn around its business "until the second-half" of 2008. Shares snapped back in a relief rally on Friday, climbing 19.5%, or $1.06 per share.
The decline in the share price of E*Trade Financial (ETFC-$5.33), along with pressure for a sale from hedge funds including Jana Partners LLC and SAC Capital Advisors LLC, may jumpstart takeover negotiations for the struggling online brokerage.
In a regulatory filing, H&R Block (HRB-$19.36) said lender Greenwich Capital Financial Products gave $350 million in additional funding for Option One, its embattled mortgage unit. The U.S.'s largest tax preparer said the Greenwich facility provided financing to fund servicing operations through Oct. 1, 2008.
NYMEX Holdings (NMX-$123.50), frequently mentioned as a takeover target for the New York Stock Exchange, was recently highlighted by Citigroup's risk arbitrage analysts as worth about $155 a share in a deal, or about 40 times 2008 earnings.
Barrington analyst Walter Liptak says automotive chassis maker Spartan Motors (SPAR-$9.98) can grow both sales and EPS over the long term as military production inefficiencies and parts shortages are worked out.
Silver Standard Resources Inc. (SSRI-$40.57) announced that it would issue a news release regarding the Pirquitas Project in Argentina on Monday morning, November 26, 2007.
Bear Stearns raised its rating on Tibco Software (TIBX-$7.38) to “Peer Perform” from “Underperform.” Analyst John DiFucci said that concerns about weaker financial services are priced into the shares of the business-software company.
Whole Foods Markets’ (WFMI-$40.75) margins will be squeezed in the next year, but analysts are optimistic about earnings growth down the road for the food retailer.
Editor David J. Phillips does not own a financial interest in any of the stocks mentioned in this column. The 10Q Detective has a Full Disclosure Policy.
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