Weekly Market Overview
The week began with a bust today after the Dow dropped 100 points when news that sales of new homes unexpectedly fell to a 7-year low in February. This sparked concerns that the poorly performing housing market might derail economic growth. The housing market was so far off of forecasts that even with the bad weather, it caused enormous concern. The market recovered, however, as the technology sector moved higher. The week will likely remain just as mixed as the economy's health remains uncertain.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - The company announced last week that it would be following Carl Icahn's advice and breaking up the company. Shares spiked over 14% on the news, up almost 30% since we first began coverage! We believe that the value unlocked in these transactions will exceed the premium seen today; however, it may take awhile for these actions to materialize.
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! Meanwhile, those close to the situation say that investment bankers are trying to find buyers for both businesses - a move which is angering the two activist hedge funds. Last week, Ackman sued the company, demanding that they release letters between Board Directors that they believe contains evidence supporting their thesis that the company has been having problems. (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top four stocks to watch for technical analysts are:

1. Conocophilips (COP) - Intermediate-term bullish head and shoulders bottom.
   
2. Coldwater Creek Inc. (CWTR) - Intermediate-term bullish megaphone bottom.
   
3. Cubist Pharmaceuticals (CBST) - Long-term bullish head and shoulders bottom.
   
4. Hancock Fabrics Inc. (HK) - Long-term bullish double bottom.
   
5. Sonic Foundry Inc. (SOFO) - Intermediate-term bullish symmetrical continuation triangle.
   

Stock of the Week : Discover Financial Services (DFS)
Morgan Stanley recently offered additional details on its pending spin-off of Discover Financial Services - owner of the Discover credit card business. the company is a leading credit card issuer and electronic payment services company with one of the most recognized brands in the U.S. financial services. Since its inception in 1986, the company has grown to become one of the largest card issuers in the United States, with more than 50 million cardmembers and $45.7 billion in managed receivables as of November 30, 2006. They are also a leader in payment processing, as they are only one of two credit card issuers with its own U.S. payments network and the only issuer whose wholly-owned network operations include both credit and debit functionality. In 2006, the company processed mroe than 3 billion transactions through their own network and the PULSE network. Overall, Discover's revenues (net interest income plus other income) have increased over the last three years, from $4.5 billion in 2004 to $5.1 billion in 2006, making them a substantial player in their market. This is definitely an "IPO" worth putting on the calendar - due to take place in the third quarter!

Read More on SECInvestor.com…


Filing of the Week : Form 10-K
Most investors look to 10-K filings when looking for information about a company. These filings are classified as "Annual Report" filings that encompass a company's yearly financials and relevent information. They contain an overview of the company, how they did last year, a detailed overview of their financials, and management discussion and analysis. Newer 10-Ks may also contain executive compensation discussion and analysis. These filings are required reading before investing in any company!

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Peek into Hedge Fund Portfolios
Hedge funds are required to report their annual holdings in a Schedule 13F filing with the SEC. These filings give detailed insight into what companies the hedge fund is holding and how much they have at stake in each. It can be an important clue into which companies may be targetted next for buyouts, mergers, spin-offs, or other strategic transactions that can generate value for shareholders. Overall, these are filings that are definitely worth keeping an eye on!


Final Words
The economy seems to be turning to the upside lately with little volatility compared to last week. Good luck trading!

Weekly Market Overview
The week is again full of news as private equity, executive compensation, and the mortgage crisis top the headlines. First, in the private equity world, Blackstone said that it would be the second private equity/hedge fund to go public. The move sparked much speculation that Carlyle and a number of other private equity giants would follow in what would be a new trend allowing the average investor to capitalize on the large profits reaped by these companies.

Executive compensation also topped the headlines as the SEC's new executive compensation disclosures rules have begun to go into effect. Not suprisingly, this has caused a few problems as investors are beginning to realize just how complex executive compensation really is to analyze. Instead of making things easier, many investors insist that things like negative income being reported (a result of the way stock options are valued) have investors even more confused than they were before. Meanwhile, those on the Hill are trying to get additional rights in place for investors to have a non-binding proxy vote on executive compensation on a regular basis. More on these stories over at ExecutiveInvestigator.com.

Finally, some are saying that the mortgage market is beginning to rebound after a brief hit on the economy. New Home Builders Confidence numbers, however, slipped for the first time in six months reflecting continuing concern about worsening credit in the subprime motrgage market. Fortunately, many are saying that the spillover into the regular mortgage markets is not likely to be as significant as first thought. However, this is still a story to keep an eye on.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - The company announced last week that it would be following Carl Icahn's advice and breaking up the company. Shares spiked over 14% on the news, up almost 30% since we first began coverage! We believe that the value unlocked in these transactions will exceed the premium seen today; however, it may take awhile for these actions to materialize.
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! Meanwhile, those close to the situation say that investment bankers are trying to find buyers for both businesses - a move which is angering the two activist hedge funds. Last week, Ackman sued the company, demanding that they release letters between Board Directors that they believe contains evidence supporting their thesis that the company has been having problems. (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top four stocks to watch for technical analysts are:

1. Helix Energy Solutions Group (HLX) - Intermediate-term bullish bottom triangle.
2. Hoku Scientific (HOKU) - Intermediate-term bullish continuation wedge.
3. Freeport-McMoRan Copper and Gold (FCX) - Long-term bullish continuation diamond.
4. PMC-Sierra (PMCS) - Intermediate-term bullish diamond bottom.

Stock of the Week : Take-Two Interactive Software (TTWO)
This stock first caught our interest earlier this month when several investors collectively holding 46% of the company's outstanding shares reached an agreement with the company to vote in a new slate of six directors. The investment group consists primarily of OppenheimerFunds, SAC, Tudor Investment, DE Shaw Valence and ZelnickMedia. The new nominees for the Board of Directors include former BMG Entertainment CEO Strauss Zelnick, former News Corp executive Benjamin Feder, Jon Moses, Michael Dornemann and Michael Sheresky. Many analysts and investors are predicting that the proposed management change would have a positive impact on the company, after it suffered losses for the past four quarters. But in a new twist to the story yesterday, the company announced that it would delay its annual meeting in order to evaluate the hedge funds' proposals as well as its own strategic alternatives, including a possible sale of the company.

Read More on SECInvestor.com…


Filing of the Week : Form 10-K
Most investors look to 10-K filings when looking for information about a company. These filings are classified as "Annual Report" filings that encompass a company's yearly financials and relevent information. They contain an overview of the company, how they did last year, a detailed overview of their financials, and management discussion and analysis. Newer 10-Ks may also contain executive compensation discussion and analysis. These filings are required reading before investing in any company!

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Peek into Hedge Fund Portfolios
Hedge funds are required to report their annual holdings in a Schedule 13F filing with the SEC. These filings give detailed insight into what companies the hedge fund is holding and how much they have at stake in each. It can be an important clue into which companies may be targetted next for buyouts, mergers, spin-offs, or other strategic transactions that can generate value for shareholders. Overall, these are filings that are definitely worth keeping an eye on!


Final Words
The economy seems to be turning to the upside lately with little volatility compared to last week. Good luck trading!

Weekly Market Overview
There are several big happening recently that investors should be watching closely. The first is obviously the mortgage crisis that is only growing worse, now that New Century Financial was denied credit to continue its operations. Many other subprime lenders also warned that their earnings may be in danger due to an increasing amount of defaults. In the end, it is likely that this sweep will cause stricter regulations on a mortgage market that has grown increasingly loose in terms of lending standards during the past decade. Opportunities here lie in playing the subprime mortgage weaknesses and any possible larger restrictions on lending standards.

The second big thing to watch is China, which recently reported a trade surplus that nearly tied the record at $23.76 billion. Many predict that this large surplus will further push US lawmakers to encourage China to force its currency to a more appropriate level or face massive export taxes. This could affect many Chinese companies that are now enjoying what some consider unfair trading advantages over US firms. Opportunities here lie in locating Chinese firms that could be hurt by new legislation as well as US firms that could benefit.

Finally, the hedge fund industry is beginning to fear new regulations from Washington after similar actions were taken overseas. Among the proposed changes is a clause that would tax private equity firm fees at the standard rate instead of at the capital gains rate - a difference of almost 20%! Any actions against private equity and hedge funds could cause a slowdown in the amount of deals that we have been seeing recently. The groups are only now beginning to organize in Washington to lobby on their own behalf - we have yet to see how this will turn out.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. Temple Inland Inc. (TIN) - The company announced today that it would be following Carl Icahn's advice and breaking up the company. Shares spiked over 14% on the news, up almost 30% since we first began coverage! We believe that the value unlocked in these transactions will exceed the premium seen today; however, it may take awhile for these actions to materialize.
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! Meanwhile, those close to the situation say that investment bankers are trying to find buyers for both businesses - a move which is angering the two activist hedge funds. Last week, Ackman sued the company, demanding that they release letters between Board Directors that they believe contains evidence supporting their thesis that the company has been having problems. (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top five stocks to watch for technical analysts are:

1. Grant Prideco Inc. (GRP) - Intermediate term ascending continuation triangle.
   
2. Lam Research (LRCX) - Intermediate term continuation wedge.
   
3. Canadian National Resources Inc. (CNQ) - Long-term continuation diamond.
   
4. Verasun Energy Corp (VSE) - Intermediate term head and shoulders bottom.
   
5. Leucadia National Corp (LUK) - Long-term head and shoulders bottom.
   

Stock of the Week : Ceridian Corporation (CEN)
We believe that this Ceridian is a stock worth a second look in today's market. Everyone knows that Pershing Square and Relational Investors are attempting to force Ceridian to spin-off its Comdata unit, which could unlock millions in value. However, the company recently announced that it has hired an investment banker and those close to the situation are saying that these bankers are approaching private equity and corporate buyers who may be interested in acquiring the whole company. Late last week, the hedge fund also revealed that it was being sued by Ackman, who demanded that it turn over letters that may help prove its case to shareholders in the event of a proxy fight. This is a win-win situation for investors, who stand to gain from a buyout premium and/or a Comdata spin-off! This makes CEN a stock worth watching closely over the next few weeks!

Read More on SECInvestor.com…


Filing of the Week : Form 10-K
Most investors look to 10-K filings when looking for information about a company. These filings are classified as "Annual Report" filings that encompass a company's yearly financials and relevent information. They contain an overview of the company, how they did last year, a detailed overview of their financials, and management discussion and analysis. Newer 10-Ks may also contain executive compensation discussion and analysis. These filings are required reading before investing in any company!

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : Leverage Up with LEAPs
LEAPs are Long Term Equity Anticipation Options - or options that have an expiration date set years in the future instead of mere months. Many popular stocks offer these options for long-term shareholders that would either like to leverage up or hedge against their open position. The options themselves can offer investors increased leverage if they are confident in the stock's future - after all, options are cheaper than buying the underlying stock. Alternatively, some investors find it useful to use these options to hedge against other long-term plays - most notably, long-term shorting. Shorting stocks can be risky in the event of a sudden strike of good fortune for the company, so these options can be used to limit the downside for those speculators. Either way, LEAPs are an excellent tool that every investor should check out!


Final Words
The economy seems to be turning to the upside lately with little volatility compared to last week. Despite this bullish mood, however, it is important to remember the many fundamental factors that stack against the economy - most notably the mortgage crisis and China trade issues. Good luck trading!

Weekly Market Overview
Stocks began the week much better than expected after markets overseas moved down sharply. Several sectors are still hurting after falling off of all-time highs, including brokerages, transports, energy and some commodities. The biggest shocker, however, continues to be the collapse of the subprime mortgage market and overall real estate weakness. The fall of New Century, HSBC, and other major subprime lenders dragged the market down as several closed-end funds (CEFs) trading mortgage securities also moved further away from net asset value (NAV). Overall, many investors are expecting to see weakness in the market as these economic issues are being sorted out.


Top 10 Stocks to Watch this Week
Fundamental Analysis
Our top five stocks to watch for fundamental investors are:

1. Cost-U-Less, Inc. (CULS) - There are two hedge funds currently involved with this stock, both calling for the company to put itself up for sale. One of the hedge funds has even said it would make an offer. If the two hedge funds are successful in lobbying management, the company should sell for at least $12 per share - a 40% gain. (More CULS articles...)
   
2. PDL BioPharma, Inc. (PDLI) - Daniel Loeb's Third Point hedge fund contacted this troubled company today offering them help in reorganizing themselves in order to unlock value for shareholders. The company has already been beaten down and targeted by other investors who demanded the company put itself up for sale. As one of their few allies and chances for survival, the company may rely on Daniel Loeb to help turn their company around. And this definitely isn't a bad thing considering his track record! (More PDLI articles...)
   
3. Ceridian Corporation (CEN) - Bill Ackman propposed that Ceridian spin off its Comdata division since the two share almost no synergies. Moreover, he said that the segment was being held back by the parent company. This is another great spin off opportunity that would help both the parent company and the child company... and Bill Ackman definitely knows what he is doing! Meanwhile, those close to the situation say that investment bankers are trying to find buyers for both businesses - a move which is angering the two activist hedge funds. (More CEN articles...)
   
4. Applebees International Inc. (APPB) - The Breeden Partners recently filed a series of Schedule 13Ds suggesting that the company improve several defficiencies, including its excessive executive compensation. If these issues are appropriately addressed, it could help the company save millions and increase their share price significantly. (More APPB articles...)
   
5. Electro Scientific Industries (ESIO) - Nierenberg Investment Management first lobbied this company to take several actions to return shareholder value. Since then, they have been joined by another hedge fund. Combined, these two should have enough leverage to at least warrant a response by management. If they are successful, it could mean special dividends or other measures aimed at unlocking value. (More ESIO articles...)
   

Technical Analysis
Our top five stocks to watch for technical analysts are:

1. Furniture Brands Intl (FBN) - Diamond bottom, intermediate-term bullish.
2. Longs Drug Stores Inc. (LDG) - Continuation diamond, long-term bullish.
3. Audible Inc. (ADBL) - Head and shoulders bottom, long-term bullish.
4. Transmeridian Exploration Inc. (TMY) - Double bottom, long-term bullish.
5. Sepracore Inc. (SEPR) - Head and shoulders top, medium-term bearish.
   

Stock of the Week : PDL BioPharma, Inc. (PDLI)
Daniel Loeb's Third Point disclosed a 7.5% stake in PDLI today and expressed disappointment and concern over the company's high rate of spending and significant underperformance. The hedge fund's Schedule 13D filing also contained a letter urging the company to cut costs and not pursue additional acquisitions. Daniel Loeb offered to work with the company to streamline the company's cost structure and asset base in an effort to allow the cash generating ability and value of the company to be developed and made apparent to shareholders. We believe that given Loeb's track record and the mounting concerns shareholders have against management, the odds of a deal between the two are more likely than not. However, this remains to be seen...

Read More on SECInvestor.com…


Filing of the Week : NT Forms
Occasionally, investors may come across what are sometimes known as NT forms. These are filings explaining why an originally intended filing could not be made on time. The most common NT form is the NT 10-K, which is made in place of an annual report if a company has to restate earnings or re-evaluate their books. These are important for shareholders to look at because they contain all a lot of information regarding the problems that the company is facing and how long they may take to resolve. Often times, the media can overlook problems present in these filings when they report sensational headlines, hence their value to the average shareholder.

You can easily track these SEC filings with e-mail and RSS alerts using SECFilings.com!


Tip of the Week : All About Spin-Offs

Final Words
This week should be mostly mixed as investors await a clearer sign of economic direction, particularly after the diseasters overseas and in the subprime mortgage securities markets here. It doesn't look good this week for the larger averages; however, there are certainly plenty of opportunities to profit elsewhere in individual stocks!