Aeropostale, Inc. (NYSE: ARO) is up 4.6% to $12.69, relative to a 52-week range of $9.16 – $27.73. Jefferies has upgraded the company from “hold” to buy.”

BigBand Networks, Inc. (NASDAQ: BBND) is up 74% premarket to $2.21, relative to a 52-week range of $1.20 – $3.28. The company is being acquired by ARRIS group, Inc. (NASDAQ: ARRIS).

Netflix, Inc. (NASDAQ: NFLX) is down more than 2% premarket to $109.17, relative to a 52-week range of $107.31 – $304.79. The company announced yesterday that it was cancelling the plans to spin off its streaming service into the Qwikster brand.

• BigBand Networks (NASDAQ: BBND) Cut to Underperform at Jefferies.
• Computer Sciences Corp. (NYSE: CSC) Started as Sell at Citigroup.
• Emulex (NYSE: ELX) Cut to Underweight at JPMorgan.
• Garmin Ltd. (NASDAQ: GRMN) Cut to Neutral at Baird.
• Qualcomm (NASDAQ: QCOM) Started as Outperform at FBR.
• Seagate Tech (NASDAQ: STX) Cut to Neutral at JPMorgan.
• Websense (NASDAQ: WBSN) Raised to Outperform at FBR.
• Western Digital (NYSE: WDC) Raised to Neutral at JPMorgan.

JON C. OGG

Avondale Partners analyst Blair King issued an "Outperform" rating on the company.

The move is curious and probably ill-conceived. Big Band’s real business advantage is in helping move video around broadband networks. The business is no longer growing at the rate it was two years ago. Large content companies are having trouble making money in the online video content business. That may cut growth even further.

Other firms in the industry which handles content delivery, especially Akamai (AKAM), trade at 52-week lows.

If there is a profitable model for premium web video, no one has found it.

Douglas A. McIntyre

We called CEO James Donald of Starbucks (NASDAQ: SBUX) last week as a CEO that needs to replaced by founder Howard Schultz.  Yesterday that happened.

Yesterday evening there were also reports from CNBC, The WSJ, The Financial Times, CNN, and many others that James Cayne (Jimmy) was being replaced as CEO at Bear Stearns (NYSE: BSC).  He was our replacement in December for another CEO who got the ax so we’d still have our 10 CEO’s TO GO FOR 2008.  At midnight EST there was no official statement from the company but these reports when this widespread are almost never "an oops" where everyone is wrong (even if Dewey didn’t really win).  It appears that Cayne is staying on as Chairman, but keep in mind he’s in his 70′s.

Cherkasky of March & McLennan (NYSE: MMC) was the one that was fired in December and he was one of our 10 CEO’s to go, and one of the top ones. 

But we comprised a list of "actionable events" where a CEO being fired or "retiring" would likely act as cause for a stock rally so long as the companies have a replacement and action plan in place.  Bear Stearns shares were down 3% again Monday, but rose 2.3% in after-hours. We aren’t just trying to point out CEO’s, and we even gave a GUIDELINE FOR CEO’s TO GO.  We looked for stocks where we think new leadership would propel the shares.  So here is a summary of CEO’s we still believe need the ax headed their way:

• We believe that Angelo Mozilo of Countrywide Financial (NYSE: CFC) will retire as CEO this year, but he’ll probably retain the Chairman role.
• Alan Cohen of Finish Line (NASDAQ: FINL) is one we have been against for some time now and this was before the last blow-up that we saw coming.  He has screwed the common shareholder situation now so bad that viability is an actual concern and trying to use their balance sheet or valuations is irrelevant.  He’s gotta pay. Just one problem though: he’s dug in deep with voting control because of a dual class of stock. He needs to go get a pair of running shoes at an East Coast store and go on a Forrest Gump endless run.
• Gary Pruitt of McClatchy (NYSE: MNI) is responsible for heading up the acquisition of Knight-Ridder, and the stock has never been the same since.  The balance sheet is now more leveraged and his old glory days are long gone.  It is hard to blame a CEO in the newspaper business for much turmoil now because it is systematic, but this is currently the worst in the lot.  Here’s the full scoop on that one.
• James Tobin of Boston Scientific (NYSE: BSX) is a CEO in the middle of  giant quagmire.  Not all of the problems at the company are his issue alone, but they are the worst performer in their sector and this acquisition of Guidant was such a dud that the BSX-GDT combined company is now worth less than Boston Scientific was before it went after Guidant.  Here’s the rest.

There is also a whole slew of technology companies in need of a new regime. Here are the 247WallSt.com Technology CEO’s Who Need to Go in 2008 (ALU, AMD, BBND, CC, SYMC).  Out of these two we can’t decide which one of two is more deserving to get the ax nor which will be the first one marched out.  Hector Ruiz of Advanced Micro Devices (NYSE: AMD) and Philip Schoonover of Circuit City (NYSE: CC) have done in their hearts what the best thing and their efforts and leadership ended up being the bomb.  Military pilots turned investors would say their tenable positions are now FUBAR.  They should both meet on the golf course this weekend and see which one can score a better exit package.  Ruiz will probably have a better exit package as his pay with options is potentially huge.  Both of these guys are probably done.

If you want a potential list of other CEO’s or key managers that could face choppy waters you can see our master list of TURNAROUNDS THAT HAVEN’T TURNED AROUND.

Join our open email list to hear previews about other management changes, value stocks, special situations, IPO’s, restructuring, M&A, merger-arb spreads, and more.

Jon C. Ogg
January 8, 2008

Chip and tech stocks on 52-week lows: AMAT, AMD, ADTN, ARRS, ATML, BBND, CHRT, FCS, FEIC, IDTI, IM, KLAC, KLIC, LRCX, LSCC, LSI, MCRL, MRVL, MU, NSM, STM, TER, XLNX

Financial Giants on 52-Week lows: BAC, BBT, BSC, CYN, DFG, EFX, FIC, FITB, FHN, MCO, NCC, PNSN, SNV, SBP, WFC, ZION.

We kept the REIT’s and the usual suspects in retail off the list that have been here day in and day out (although many hit new 52-week lows).  Here is the huge list of others 52-week lows:

• Automatic Data (ADP), Cardinal Health (CAH), Career Education (CECO), Diebold (NYSE: DBD), EchoStar (DISH), Superior Offshore (DEEP), Dow Chemical (DOW), Eastman Kodak (EK), Emmis (EMMS), Ford (F), Fortune Brands (FO), General Motors (GM), Hasbro (HAS), Helen of Troy (HELE), Interpublic (IPG), Mattel (MAT), McClatchy (MNI), Media General (MEG), Nortel Networks (NT), Owens Corning (OC), Paychex (OPAYX), PHH Corp. (PHH), Playboy (PLA), Radio Shack (RSH), Rite Aid (RAD), Sherwin Williams (SHW), Sprint Nextel (S), Starbucks (SBUX), Starwood Hotels (HOT), Sun Microsystems (JAVA), Symantec (SYMC), Travelzoo (TZOO), VF Corp (VFC), Warner Music Group (WMG), Waste Management (WMI), Weight Watchers (WTW), Wendy’s (WEN)

Imagine how large this list would have been if retailers and REIT’s were included.
Jon C. Ogg
January 2, 2008

We decided to run a GUIDELINES FOR CEOs TO GO.  Most of these CEO’s have a recent history of disappointment, and calling a CEO out can’t be just over stock prices. The CEOs have proven their need to be called on to go. Out of 24/7 Wall St.’s CEO list for 2007, six of the eight that we called on to be fired were fired or finally forced out.  Here’s the full list, with a brief sentence and a link to the full explanations for each:

• Amir Bassan-Eskenazi of BigBand Networks (NASDAQ: BBND) has no street-cred left.  Usually it takes a long time to do a job this badly and an email from a former engineer there sent comments that were more harsh about him than we’d publish.  BigBand has been one of the worst IPOs of 2007 (full list here).  This management of the company has alienated everything that would yield any trust. Here’s why the founder needs to go become a full-time golf hobbyist.
• Hector Ruiz of Advanced Micro Devices (NYSE: AMD) was a simple choice for a tech CEO who needs to go.  Even though he wants to stay that he won’t be allowed to. Intel Corp. (NASDAQ:INTC) isn’t just winning, it’s running away with trophy from the processor war. Here’s why he’s toast, even if he won’t admit it. 
• Patricia Russo of Alcatel-Lucent (NYSE: ALU) isn’t here because we needed to be an equal opportunity offender. We feel that she is only still listed as CEO because she is American and can be used to keep CIFIUS oversight happy.  The French now own so many American patents from that merger that Alcatel needs to pretend to oversight regulators that Lucent is still around. Alcatel needs a new token American, and here’s the backgrounder.
• Philip Schoonover of Circuit City (NYSE: CC) needs to scoot over. Can you count a retailer as a tech?  Yes, if that is what they sell.  Scoonover figured out the best way to stop selling technology there and the last results were so shameful that the company will likely lose money for the Christmas quarter.  Here’s why employees of Circuit City put this on the Circuit City employee Intranet.
• John Thompson of Symantec (NASDAQ: SYMC) was a tough CEO to put on this list.  I like him personally and professionally as a CEO that seems to be a very straight shooter.  The diversification strategy away from security alone was one we thought would work out, but Wall Street was against this from the start because of no cost real cutting opportunities and because of a focus shift.  The acquisitions since have been dismissed by Wall Street and this tech stock is no longer considered a growth story.  Wall Street talks, here’s the full piece on it.

Many of these names routinely end up in the 24/7 Wall St. "10 Stocks Under $10" weekly newsletter.

Jon C. Ogg
December 28, 2007

• VeriChip Corp (NASDAQ:CHIP) Feb. 9 at $6.50; recently $2.49 or -61.69%.
• Superior Offshore (NASDAQ:DEEP) April 19 at $15.00; recently $5.85 or -61.00%.   
• ZBB Energy Corp (AMEX:ZBB) June 15 at $6.00; recently $2.40 or -60.00%.
• Bigband Networks (NASDAQ:BBND) March 14 at $13.00; recently $5.55 or -57.31%.
• Meruelo Maddux Prop. (NASDAQ:MMPI) Jan. 24 at $10.00; recently $4.36 or -56.40%.   
• Glu Mobile (NASDAQ:GLUU) March 21 at $11.50; $5.07 or -55.91%.
• ImaRx Therapeutics (NASDAQ:IMRX) July 25 at $5.00; recently $2.23 or -55.40%.
• GSI Technology (NASDAQ:GSIT) March 28 at $5.50; $2.51 or -54.36%.
• Xinhua Finance Media (NASDAQ:XFML) March 8 at $13.00; recently $6.18 or -52.46%.
• Pinnacle Gas Resources (NASDAQ:PINN) May 14 at $9.00; recently $4.30 or -52.22%.   
• Limelight Networks (NASDAQ:LLNW) June 7 at $15.00; recently $7.29 or -51.40%.

Jon C. Ogg
December 26, 2007

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Macrovision (MVSN) Wall St. upset with takeover of Gemstar-TV Guide (GMST). Down to $18.60 from 52-week high of $30.05.

BigBand Networks (BBND) Never recovered from IPO and poor earnings early on. Down to $5.10 from 52-week high of $21.63.

Palm (PALM) Poor guidance. Late release of key product. Off to $5.33 from 52-week high of $19.50.

Savvis (SVVS) Bad Q4 outlook. Down to $23.72 from 52-week high of $53.47.

Douglas A. McIntyre

This is not necessarily the worst IPO of 2007 if you can believe it, but it was one of the most easily recognizable out of the losers considering the "hot" IPO status at a cautious time.  In fact, its network-based platforms that enable cable operators and telephone companies to offer video, voice, and data services across broadband and legacy networks had been discussed by some as a possible challenge to Cisco Systems (NASDAQ: CSCO) down the road and on a limited basis.  Because of a sharp focus we aren’t sure that was really the case, but their pre-IPO and post-IPO indications were quite strong.  As it turns out, the only challenge this has posed was an investor loss test to see if investors could lose more money buying BigBand stock or by purchasing CDO’s blindly.

Shares rose to just over $20 before summer after its "hot" IPO in March and two underwriters gave positive recommendations with a "buy" rating and an "outperform" rating.  Those look like ancient history if you read them now.  The company disappointed in late summer as not being good enough for a recent hot-IPO, but then it posted results that failed to impress again since then.  The stock has never recovered and the analyst reports aren’t exactly a great courage builder.  Even its recent announcement of "five contract wins in China" has failed to attract the "China hype" traders.

On October 30, BigBand announced a restructuring plan "to increase its efforts on video networking." As part of its plan, BigBand said it would reduce its workforce by 15% and retire its Cuda CMTS platform.  Is that the success a post-IPO company wants to signal?

Simultaneously the company announced that its general manager of product operations, David Heard, would become its C.O.O. and assume combined responsibility for research & development, marketing, sales, services and operations.  Heard joined BigBand earlier in 2007, after having leadership positions at data and telecom companies, including Tekelec, Lucent, AT&T and Somera Communications.  The potential good news is that at least shareholders have a shot at putting him in charge IF they can march the CEO out.

Class action settlements (looks like 4 class action suits) are a potential threat to the $140+ million cash on the books, so don’t even use the market cap to net cash metric to derive if BigBand has become a "value stock" or not.  It isn’t.  The short interest on last look was over 2.3 million shares.

Because of the series of disappointing earnings and the lowered guidance and losses posted, we do not even know if the First Call estimates ahead are worth as much as toilet paper. Estimates have come down drastically and its forward P/E is still over 100. The point that some key orders didn’t go through has merely shown that this is just a big risk in investing in stocks where one or two contracts make or break a quarter.  From our view don’t have any assurances that they will be profitable ahead, although there may be some negative personal opinion there that isn’t in agreement with the company’s management.  But we’d argue that morale is probably only high among the sales staff when they are at happy hour.

Amir Bassan-Eskenazi might, and we key on might, be able to satiate hostile shareholders by merely loosening up on some of his titles with a stronger operations team if he isn’t willing to leave outright and just hold his shares.  We are also not certain that a disgruntled base of shareholders would greet an outright departure with open arms because it could signal even more trouble.  So we’d suggest that Amir Bassan-Eskenazi keep the Chairman role and go find a real ball-buster of an action hero that can assume all of his operation roles that aren’t handled by David Heard.  Because of insider ownership and alternatives we believe the board could take if it wanted, he has to willingly do this or the effect could take this one further south.  Wanting someone out doesn’t mean they can be automatically outed, even if they have done a poor job. 

We haven’t calculated or been able to make a ‘guestimate’ on what his outright and complete departure would be worth because it may be viewed as a drastic signal.  But if they do have decent technology that can be sold and is actually competitive to others on the market, then it’s at least time for the founder to become more of an oversight position rather than the operator.

Shares sit at $5.71 today, and its short post-IPO trading range is $5.47 to $21.63.

GUIDELINES FOR OUR CEO SELECTION

Jon C. Ogg
December 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Standard Pacific (SPF) Home builder. Drops to $5.45 from 52-week high of $30.52.

La-Z-Boy (LZB) Tough economy means people don’t have time to sit down. Down to $7.30 from 52-week high of $15.60.

Bigband (BBND) Broadband infrastructure provider misses all targets. Down to $5.89 from post-IPO high of $21.63.

Douglas A. McIntyre