Apple (AAPL) Raised to Overweight at Morgan Stanley.
Ariba (ARBA) Cut to Perform at Oppenheimer.
Avid Tech (AVID) Raised to Overweight at JPMorgan.
Bank of America (BAC) Raised to Market Perform at FBR.
First Solar (FSLR) Cut to Underperform at FBR.
J. Crew (JCG) Cut to Underperform at Needham.
LM Ericsson (ERIC) Raised to Outperform at Bernstein.
Monster Worldwide (MWW) Cut to Underperform at Wachovia.
Qwest (Q) Raised to Overweight at JPMorgan.
Yingli Green Energy (YGE) Raised to Buy at Lazard.

JON C. OGG
May 26, 2009

• Avid Technology Inc. (NASDAQ:  AVID). Selling at lowest level since 2003 today at around $19.20 due to downgrades and poor outlook. The former low was $23.50. 
• Cerner Corp. (NASDAQ: CERN). This healthcare solutions company isn’t looking so healthy after disappointing quarter, although isn’t hasn’t spent the whole day trading under the 52-week low. 
• Digital River Inc. (NASDAQ: DRIV). Not meeting the street, the e-commerce company was trading at $30 at mid-day. The prior 52 week low was $32.
• Millipore Corp. (NYSE: MIL). Low sales lead to a new low. Trading at $64.61 at mid-day, the prior 52 week low was $64.90. 
• Netezza Corporation (NYSE: NZ). Was down over 8% at mid-day, this data warehouse appliance provider on somewhat of a head scratcher….
• Omnicell Inc. (NASDAQ: OMCL). Perhaps this medication control company needs to take a dose of its medicine as shares fall to as low as $17.61, although it is back above its prior low of $18.28 at mid-day. 
• Harris Interactive Inc. (NASDAQ: HPOL). Down 21% at mid-day after a disappointing earnings call. The prior low was $2.90.
• Fleetwood Enterprises Inc. (NYSE: FLE). This mobile home maker didn’t spend all day under the 52-week lows, but the weakness after yesterday’s earnings and a downgrade persisted. Apparently tornadoes aren’t the only ones that don’t like mobile homes.   
• Actuate Corp. (NASDAQ: ACTU). For a company that provides software for business intelligence, business isn’t looking too hot. Down 23% at mid-day $4.34, its prior low was $4.91.

Have a great weekend, particularly if you are doing Mardi Gras parties and the Super Bowl!

Rachel Lopez
February 1, 2008

Nortel (NT) Down in sympathy with ALU. Falls to $16.32 from 52-week high of $31.79.

Krispy Kreme Doughnuts (KKD) Company looks like it is heading for extinction. Down to $3.01 from 52-week high of $13.93.

King Pharmaceuticals (KG) Loss on patent ruling still driving this to ground. Down to $11.67 from 52-week high of $22.25.

New York Times (NYT) Pains of the newspaper industry. Falls to $19.92 from 52-week high of $26.90.

Syntax Brillian (BRLC) Company cuts guidance and CFO leaves. Drops to $3.98 from 52-week high of $11.70.

Avid Technology (AVID) Media content production company takes a header. Down to $22.55 from 52-week high of $40.68.

Level 3 (LVLT) Big networl provider has a ton of high-yield debt. Falls to $4.41 from 52-week high of $6.80

Douglas A. McIntyre

The real problem is that this isn’t just a 52-week low, it’s a low not seen since 2003.  This is also after its CEO left in July.

What is interesting is that Avid is "THE GO-TO" media and broadcast technology company.  The company sells all the camera, graphic, and broadcast technology that is required for television networks and for high-end Web 2.0 media operations.  All the big boys use their equipment or at least equipment sold by them. 

If you have done any investigation of running Web 2.0 operations like video shows and the like you will know that Avid is considered the Rolls Royce equivalent in digital video and broadcast equipment systems.  The problem is that not everyone can afford Rolls Royce."  The malaise that has hit traditional media companies and the lower ad spending that has started may be contributing to Avid’s woes.  It wouldn’t take a rocket scientist to realize that lower revenues from media companies might delay and slow down some cap-ex spending on more super high-end equipment.

Most of the shoestring budget Web 2.0 companies can’t afford the Avid solutions.  When you look at what people are able to put together with some less than perfect digital cameras and basic edit packages, it is no surprise that the myriad of Web 2.0 companies out there are piece mealing together much cheaper systems.  The cheaper systems definitely are not in the same league as Avid, but a budget of less than $1,000.00 for many dictates that many of these companies and individuals use a band-aid solution that is less than perfect.

Maybe Avid can figure out more ways to tap that lower-end user without watering down its existing high-end base.  Many individuals and small companies in and around the Web 2.0 model operations need better low-end systems and that market is still very fragmented right now.  But Web 2.0 also has a habit of eating many high-end traditional go-to operations. 

Our Special Situation Investing Newsletter subscribers (sample here for the first call in May and exit call early last month) saw this firsthand where we predicted the Web 2.0 and wiki-models would result in a rapid drop in shares of Getty Images (NYSE:GYI).  There is an opportunity for Avid to capture this lower-end market IF it wants to.  But the industry trends are not really trends, they are headwinds.

With this stock hitting new multi-year lows, maybe they are willing to try reaching down to more of a lower-end customer with a goal of making it up in volume.  The company just recently sold its DigiDelivery®, asecure digital file-exchange system developed by Avid’s Digidesignaudio division, to Aspera so maybe they are considering some more changes.

Jon C. Ogg
September 12, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the 24/7 Wall St. Special Situation Investing Newsletter and he does not own securities in the companies he covers.