The current picks are Cameco Corporation (NYSE: CCJ), Dana Holding Corporation (NYSE: DAN), Southwest Gas Corporation (NYSE: SWX), Ixia (NASDAQ: XXIA), and Xylem Inc. (NYSE: XYL).  Yahoo! Inc. (NASDAQ: YHOO) is not on the list after it was removed as the only repeat stock of the prior quarter on the list.  We would note that Gabelli is generally much higher than the consensus analyst targets from Thomson Reuters and Gabelli’s FOCUS FIVE upside targets range from gains of 34.5% to as much as 63%.

In the FOCUS FIVE list, Gabelli often looks for what would be considered special situations, or undervalued opportunities based upon not-yet finalized information.  Some are very speculative in nature, while some are not so speculative.  In most cases, many investors follow the Gabelli team because they are often looking for mergers and acquisitions or some other special situation that the market may still be discounting.

We have included price information, a summary of the call, shown the 2011 earnings estimates, and shown the Gabelli “private market value.”  We also gave upside price targets comparisons for the Gabelli target versus a Thomson Reuters consensus price objective target as well as what the “PMV” has for upside. 

Cameco Corporation (NYSE: CCJ) is at $21.43 and Gabelli wants to know if China will restart its nuclear efforts.  The uranium producer is said to be on track to double its uranium production to 40mm pounds by 2018.  A focus on China is here because it may restart issuing new nuclear reactor licenses after having suspended them in the wake of the Fukushima, Japan incident. 

Gabelli believes that China will likely start giving out new licenses in late 2011 to early 2012.  Gabelli sees $1.20 EPS in 2011 and has a private market value of $35.00 for Cameco.  As this is a higher-risk scenario, Gabelli’s implied upside is over 63%.

Dana Holding Corporation (NYSE: DAN) is at $14.14 and Gabelli noted the recent quarterly earnings showed sequential improvement in the Commercial Driveline segment with 60bps of sequential margin expansion, despite commodity headwinds. Gabelli also noted 12% EBITDA margin within the segment.  Another focus was Dana’s “optimal position to benefit from a global light and commercial vehicle growth” and it concluded that management has a strategy to “continue improving internal operations and enhancing margins.” 

The Gabelli private market value is $23.00 for Dana, a bit higher than the $21.31 consensus target provided by Thomson Reuters. If Gabelli’s target gets hit then there is 58.5% upside in Dana.

Analog Devices Inc. (NYSE: ADI) Reiterated Buy and Raised target to $53 at Gleacher & Co.
Apache Corporation (NYSE: APA) Reiterated Buy at BofA/ML.
Dana Holding Corporation (NYSE: DAN) Reiterated Strong Buy as Value at Zacks.
Dell Inc. (NASDAQ: DELL) Raised estimates but Maintained Underperform at Credit Suisse.
Excel Maritime Carriers (NYSE: EXM) Cut to Underperform as Bear of the Day at Zacks.
Franklin Resources Inc. (NYSE: BEN) Maintained Outperform as Bull of the Day at Zacks.
Gildan Activewear Inc. (NYSE: GIL) Started as Buy at BofA/ML.
Goldcorp (NYSE: GG) Raised to Overweight at HSBC.
Hewlett-Packard Co. (NYSE: HPQ) Cut to Neutral at JPMorgan; Cut to Hold at Brean Murray.
Intel Corporation (NASDAQ: INTC) Reiterated Outperform and Focus List at Credit Suisse; Maintained Buy with $28 target at Gleacher & Co.
IntercontinentalExchange Inc. (NYSE: ICE) Reiterated Buy and Raised estimate at Argus.
KB Home (NYSE: KBH) Raised to Neutral at UBS.
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) Started as Buy with $33 target at UBS.
Research-in-Motion Ltd. (NASDAQ: RIMM) Raised to Market Perform at Bernstein.
Simon Property Group Inc. (NYSE: SPG) Reiterated Buy and raised target to $125 at Argus.
Under Armour, Inc. (NYSE: UA) Raised to Buy at Citigroup.
Vodafone Group plc (NYSE: VOD) Raised to Buy at S&P Equity Research.

You can join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more. 

JON C. OGG

Reuters says that Congress challenged banks on how they would use bailout funds.

Reuters reports that companies including Honda (HMC), Home Depot (HD), and Dow Chemical (DOW) want the Fed to buy their commercial paper.

Reuters writes that RBS (RBS) will cut 3,000 jobs.

Reuters writes that EADS raised its financial targets for next year.

Reuters writes that Nissan will cut its Japan output further due to a recession in that country.

Reuters reports that Dow Jones has remained loyal to GM (GM) by keeping it in the DJIA.

Reuters writes that hedge funds see more regulation coming.

Reuters reports that the federal bailout may help the value of asset-backed securities.

Reuters reports that Kohl’s Corp (KSS) and Nordstrom (JWN) cut their financial outlooks.

The Wall Street Journal writes that banks are in a war to get new deposits by raising rates.

The Wall Street Journal reports that Citigroup (C) will make large job cuts and raise rates on its credit cards.

The Wall Street Journal reports that tensions are rising in labor negotiations between Boeing (BA) and the unions that represent white-collar engineers and technical workers.

The Wall Street Journal reports that Wal-Mart (WMT) is defying the retail slowdown.

The Wall Street Journal reports that luxury good makers are cutting US prices.

The Wall Street Journal reports that there are culture clashes in the merger of Bank of America (BAC) and Merrill Lynch (MER)

The Wall Street Journal reports that Microsoft (MSFT) will offer zero percent financing on some business software.

The Wall Street Journal reports that OPEC will try to stop the falling price of oil.

The Wall Street Journal writes that PC makers are scrambling to get more share of a shrinking market.

The Wall Street Journal reports that Sprint (S) will offer some employees buyouts.

The Wall Street Journal reports that Treasury drew fire from Congress for shifting bailout fees away from buying toxic bank assets.

The Wall Street Journal reports that an auto industry bailout bill will probably not pass this year.

The Wall Street Journal reports that mortgage rates are still falling.

The Wall Street Journal reports that Google’s (GOOG) ad model is being hurt because consumers will not even search for products during the recession.

The Wall Street Journal reports that credit rating agencies cut several car suppliers including Dana (DAN) and Magna (MGA).

The Wall Street Journal reports that NBC and Fox will start a pool to gather local news.

The New York Times reports that the FDA detained some Chinese products for testing.

The New York Times reports that Google (GOOG) added search by voice to Apple (AAPL) iPhone software.

The FT reports that Citigroup (C) CEO bought shares in the bank.

Bloomberg said Cerberus said it would give up future profits if the government would bailout Chrysler.

Douglas A. McIntyre

Reuters reports that AIG (AIG) is about to get a new bailout from the US government which will be worth $150 billion.

Reuters writes that gas prices are continuing their sharp decline.

Reuters reports that Citigroup (C) is in talks to buy a regional bank.

Reuters writes that Democrats are still asking Treasury to help US car companies.

Reuters reports that Dell (DELL) will not launch its music player before Christmas.

Reuters writes that GM’s (GM) shares could go lower.

Reuters reports that HSBC (HBC) may cut 600 jobs in Asia.

Reuters reports that US companies should expect more scrutiny under Obama.

The Wall Street Journal reports that Sun (JAVA) is expanding its "open" storage line.

The Wall Street Journal writes that regulators seized two more US banks.

The Wall Street Journal reports that investors are turning their attention from the credit crisis to earnings.

The Wall Street Journal writes that GMAC is insulated from problems at its mortgage Rescap division.

The Wall Street Journal reports that radio companies are facing ad woes.

The Wall Street Journal reports that Intel (INTC) has introduced a product for homebound medical patients.

The Wall Street Journal says Starbucks (SBUX) talks of a bottom in it business has encouraged investors to take another look at its stock.

The Wall Street Journal says Congress will ask hedge fund managers about their pay and influence on the market.

The Wall Street Journal reports that GMAC is trying to get some of its creditors to write off loans.

The Wall Street Journal reports that cholesterol drugs cut heart risk in healthy patients.

The Wall Street Journal reports that investors are concerned that Dell (DELL) is behind competitors in launching new products.

The Wall Street Journal reports that Brocade (BRCD) and Foundry (FRDY) have set lower terms for their merger.

The Wall Street Journal reports that NTT’s (NTT) profits doubled in the second half.

The New York Times reports that Google’s (GOOG) YouTube will put full length MGM films at its site.

The New York Times reports that internet denial of service attacks are increasingly threatening several large websites.

The New York Times reports that Google has set a deal to e-publish out of print books.

The New York Times reports that NRG (NRG) has left the door open after rejecting a takeover bid.

The FT reports that Wall St. may cut a total of 70,000 jobs.

The FT reports that sovereign funds are cooling on rescue financing for financial firms.

The FT writes that DHL’s US arm will cut a large number of jobs.

Bloomberg reports that Anadarko (APC) and Dana (DAN) may become targets for larger oil firms like Exxon (XOM).

Douglas A. McIntyre

"Dana Holdings Corporation Sharpens Focus On Leadership Roles"

"Dana Holding Corporation (DAN )today announced that its Board of Directors has appointed John Devine to the expanded role of chairman and CEO, and named Gary Convis vice chairman."

"Convis, who has served as CEO since April, retains executive oversight of the manufacturing-oriented programs he has rolled out across Dana’s global operations."

In other words, Convis got demoted, but Dana does not want to come right out and say it.

Douglas A. McIntyre

Seattle Genetics (SGEN) announced an offering of private stock which took shares down 12% to $10.32.

Genentech (DNA) is set to report earnings after hours. The 24/7 Wall St. preview is already available.

Dendreon (DNDN) was hit with a wave of buying early in the day and is trading at three times normal volume up 8% to $6.56. Perhaps an unusual options activity in the FEB-08 $7.50 Calls is the culprit.  It had 18,457 contracts trade at that strike and the open interest before today was listed as 107,199 contracts.

BioCryst Pharmaceuticals (BCRX) is trading up 8% on well above normal volume. Named an interirm medical officer on Friday.

Compugen Ltd (CGEN) disclosed a collaboration with Merck (MRK) targeted at predicting peptides likely to activate selected G-protein coupled receptors and validating their agonistic activity. The agreement includes an option to Merck for exclusive worldwide licenses for such peptides. Shares moved up 10% to $2.06

Douglas A. McIntyre