Trader Alerts: April 7, 2008

Will Alcoa Inc (AA-$39.00) kick off a surprise quarter? The aluminum manufacturer is expected to report fourth-quarter earnings of 55 cents a share, according to analysts surveyed by FactSet Research. Investors will be watching, however, to see if the high price of aluminum will offset a host of factors, including weakness in the automotive and construction industries and cost issues in its smelting division.

Shares of metals processor Allegheny Technologies Inc (ATI-$84.00) jumped almost 12 percent on Friday and its option volume surged (the April 80 & 85 calls) on renewed chatter that it was a takeover target, option analysts said.

Fitch Ratings affirmed TD Ameritrade Holdings Corp.'s (AMTD-$17.63) issuer default rating at ‘BB+’ Friday, saying it appropriately reflects the discount brokerage's financial position.

Bond insurer Ambac Financial Group Inc (ABK-$5.99) has created a special team to assist clients with challenges arising from the auction-rate securities and variable-rate debt markets, such as penalty interest rates that have increased their financing costs.

T-Mobile Germany is currently running significant discounts on the iPhone when purchased with a 2 year contract, signaling that a new version of the Apple Inc (APPL-$153.08) device may arrive by June, according to some analysts.

Barnes & Noble, Inc (BKS-$31.87) will likely think twice before buying Borders Group, Inc (BGP-$6.17) and could wait for it to implement restructuring efforts before pursuing a deal, a senior industry banker and a source familiar with the situation told dealReporter

Circuit City Stores Inc (CC-$4.78) wants a meeting with an investor, Wattles Capital Management, who is seeking the ouster of the struggling company's chief executive and board of directors.

Shares of for-profit educator Career Education Corp (CECO-$15.91) continued to surge in after-market hours, trading up 6.25 percent, after jumping 54 cents (or 3.51%) on Friday, following the introduction of legislation that will help students pay for college in a tight credit market.

Credit rating agency Fitch Ratings said Friday it cut the financial strength rating of MBIA Inc (MBI-$13.61) to ‘AA’ from ‘AAA’ because the bond insurer no longer has enough spare capital to warrant a top-notch rating.

Micrel, Inc ($9.04) set a date for a special shareholder meeting requested by Obrem Capital Management, which owns a 14.9% stake in the chip maker, and is looking to install its own slate of directors on Micrel’s board.

Fitch Ratings cut the issuer default rating MoneyGram International Inc (MGI-$1.62) to ‘B+’ from ‘BB-‘ late Friday, citing the Minneapolis-based payment services firm’s rate of increased leverage, a debt balance that is likely to rise and reduced profitability at the company’s payment system business.

Fifth Third Bancorp (FITB-$22.71) has emerged as a possible buyer for struggling National City Corp (NCC-$8.99), The Wall Street Journal reported on Friday, citing people familiar with the situation.

Shares in Petrohawk Energy Corp (HK-$21.22) hit all-time highs in after-market trading on Friday and its option volume soared (the April 20 & 25 calls) on speculation that the oil and natural gas producer was a takeover target.

Natural gas driller Range Resources Corp (RRC-$66.99) looks to strike it rich in Appalachia.

Looking to expand its international communications market, ScanSource Inc (SCSC-$34.39), a provider of bar coding, videoconferencing and electronic security products, said Friday it bought MTV Telecom Distribution PLC, a UK-based communications company.

Schering-Plough Corp (SGP-$16.12) CEO Fred Hassan appeared on Mad Money Friday night, telling host Jim Cramer that the Vytorin fallout is a U.S.-only problem. Hassan added that the drug maker’s overseas cholesterol business is doing well and brushed aside any rumor, too, that the company would be taken over by Johnson & Johnson (JNJ-$65.73) or another big pharma company, saying that Schering management is "doing a very good job."

Sirius Satellite Radio (SIRI-$2.79) shares wavered to close unchanged Friday after an analyst downgraded the stock, saying the expense of Sirius' buyout of rival XM Satellite Radio (XMSR-$12.04) will keep the stock around its current price.

Trump Entertainment Resorts Inc (TRMP-$3.58) said Friday it has no casino agreement in place to sell any of its three Atlantic City properties.

UBS AG's (UBS--$33.65) former chief executive Friday called for the Swiss bank to consider a breakup and criticized this week's appointment of Peter Kurer as chairman, in a move welcomed by some fellow shareholders.

United Therapeutics Corp.'s (UTHR-$86.41) inhaled treprostinil may have limited efficacy due to a lack of improvement on the New York Heart Association (NYHA) functional class scale, physicians told Pharmawire.

Private-equity firm TPG and other investors are close to a deal to invest $5 billion in Washington Mutual Inc (WM-$10.18), people familiar with the matter said Sunday.

Yahoo Inc (28.36), which previously rejected a $44.6 billion takeover offer from Microsoft Corp (MSFT-$29.16), fell in extended trading on reports that its software suitor is re-examining its bid.

Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.