Dendreon Corporation (NASDAQ: DNDN) was a call that we are highlighting due to its timing rather than due solely to its impact.  On Friday came new coverage from ThinkEquity with a “Buy” rating and a $50.00 price target.  What makes this key is that this comes ahead of earnings and the firm cited better than expected growth in Provenge sales.  This is actually our second time this month that Dendreon was in the top analyst calls of the week.

Infospace Inc. (NASDAQ: INSP) was one we were surprised to see pop this week after beating earnings expectations and slightly raising guidance.  If there is one of the old great dot-com bubble stocks that deflated and became dead money it is Infospace.  Then came a call this week from S&P Equity Research and the ratings agency raised the stock rating to “Buy” and gave a price target objective of $11.00 per share.  This is above the consensus average target and the high for the year is $10.91.  This stock was at $8.78 before earnings.  S&P’s key note, “we note that the core search business showed sequential improvement with the addition of a number of a new distribution partners.”  Our food for thought here for a company trades close to book value… maybe Infospace can catch some of the Groupon mojo like we highlighted in other names.

Molycorp, Inc. (NYSE: MCP) may be peaking.  This last week brought a downgrade from Gabelli & Co., although the downgrade did not really take much wind out of the stock.  What is important here is that at some point more analysts will likely be forced to join in as the valuation is something we have cited as going from excessive to one of crack and meth.  Molycorp actually closed up $5.00 this week, but the downgrade may have put a cap on it after that Monday rally. 

SIRIUS XM Radio Inc. (NASDAQ: SIRI) was one where we issued our own outlook of what to expect with some warnings after the stock hit $2.00 early in the week.  It was only about 12-hours later that SIRIUS XM was given a downgrade on valuation by Lazard.  This is ahead of its earnings report and the downgrade was followed by a call from Wunderlich advising clients not to chase SIRIUS XM shares.  What made this stand out even more is that SIRIUS XM shares totally ignored the calls.  Yep, what seems to be one of the top calls turned out to be a dud as shares closed at $1.985 after having hit $2.00 for a 52-week high on 3 different days this week versus a $1.93 close the prior Friday. 

Vical Inc. (NASDAQ: VICL) was impossible to not have on the list of the gutsiest and greatest analyst calls of the week.  Canaccord Genuity issued a “Buy” rating but not just any ordinary “Buy” rating.  The firm is looking for shares to rise about 146% from its pre-call price.  The research call created a 10% pop, and we have another fund manager who tipped us off on this one with more positive insight ahead through 2011.  Full details of the Vical call with background data are at BioHealthInvestor.com.

The technical analysis call of the week goes to Bank of America Merrill Lynch.  While it did not mention the iShares Silver Trust (NYSE: SLV) nor the ETFS Physical Silver Shares (NYSE: SIVR) exchange-traded products, the report should have as these will be the direct winners if it comes true… The firm sees a technical breakout calling for not just $50 silver… Bank of America Merrill Lynch gave the technical reasons for why it sees $80 silver, and gave chart updates as well. 

You are invited to 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

AGCO Corporation (NASDAQ: AGCO) Maintained Outperform as Bull of the Day at Zacks.
Apple Inc. (NASDAQ: AAPL) Reiterated Buy and Raised target to $415 from $375 at Argus.
Baidu, Inc. (NASDAQ: BIDU) has seen its targets raised at Citigroup, BofA/ML, and Goldman Sachs.
Badger Meter, Inc. (NYSE: BMI) Maintained Underperform as Bear of the Day at Zacks.
Colgate-Palmolive Co. (NYSE: CL) Raised to Buy at Deutsche Bank.
Dendreon Corporation (NASDAQ: DNDN) Started as Buy at ThinkEquity.
The Dow Chemical Company (NYSE: DOW) Raised to Overweight at JPMorgan.
Flextronics International Ltd. (NASDAQ: FLEX) Cut to Hold at Argus.
InfoSpace Inc. (NASDAQ: INSP) Raised to Buy at S&P Equity Research (late-Thursday call).
Molson Coors Brewing Company (NYSE: TAP) Cut to Neutral at JPMorgan.
Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) Cut to Sector Perform at RBC.
Research In Motion Limited (NASDAQ: RIMM) Has been downgraded to Underperform at Jefferies and downgraded by at least two Canadian brokerages on its warning.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) has seen targets raised by Credit Suisse, Deutsche Bank, and Goldman Sachs.
Valero Energy Corp. (NYSE: VLO) Reiterated Buy and raised target to $35 from $32 at Argus.
Verizon Communications Inc. (NYSE: VZ) Cut to Hold at Citigroup.
W.W. Grainger, Inc. (NYSE: GWW) Raised to Neutral at BofA/ML.

This is an update from yesterday but we highlighted a technical analysis call from Bank of America Merrill Lynch that was effectively assigning the possibility of $80.00 silver, which would be yet another huge boom for shares of iShares Silver Trust (NYSE: SLV) and ETFS Physical Silver Shares (NYSE: SIVR).

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

Some do not like one-time dividends.  A steadily higher dividend and a promise to hike dividends down the road offers shareholders a benefit today and a benefit tomorrow from the higher income.  But the one-time dividend only helps holders at the record and payout dates.  One-time dividends can sometimes be bad for future shareholders who have to value a company with less cash.  We wanted to look at one-time dividends of the past and see if these new one-time dividends are good or bad for shareholders on an ongoing basis.

Garmin Ltd. (NASDAQ: GRMN) announced this morning that it will pay a one-time increase to $1.50 in its annual payment rather than $0.75 to holders of record on April 15.  The company is also moving its domicile of incorporation to Switzerland from the Cayman Islands to Switzerland if and after the shareholder vote on May 20.  Garmin has almost $1.8 billion in cash and long-term investments as of the end of 2009, and with roughly 200 million shares, this will take out about $300 million from the company coffers rather than the usual $150 million.

The vote from Wall Street is that this one-time dividend hike, as the company said was due to its strong results and cash position, is good.  If you bought shares yesterday around $35.30, the yield is 4.2%.  If you buy today at $36.65 the yield is about 4.08%.  So far the reaction is a very favorable one.  Shares are up 3.8% at $36.60 but the stock is up on thin volume.

In the second quarter, INSP revenue dropped sharply to $70 million from $95 million. And, the company posted an operating loss of $33 million.

While the online business which is being sold had segment income of $16 million on revenue of $40 million, the mobile business, which INSP is keeping had a segment loss of $ 4 million on revenue of $31 million.

In other words, the better business is being sold.

Douglas A. McIntyre

This morning, InfoSpace (INSP) announced it is selling its Switchboard.com and other online directory assets to Idearc, Inc. (NYSE:IAR).  Idearc is paying $225 million from cash and short-term borrowings.  Shares of InfoSpace are up about 24% pre-market at $16.50, still in the lower-end of the $12.56 to $27.76 range over the last year.

unfortunately, InfoSpace hasn’t been profitable and analysts have been looking for losses in both 2007 and 2008.  It is also expected to see declining revenues.  As of June 30, the company had $197.79 million in cash and short term investments and total liabilities of $72.29 million; net tangible assets were listed as $350.89 million.  Its market cap before this was listed as $439.5 million, so an an interpolated basis it would have a new market cap of $550 million.

This is part of the Board of Directors’ ongoing review of our company and the opportunities available to enhance value for shareholders.  Upon completion of the transaction, InfoSpace expects to return the net proceeds from the sale to shareholders as a special cash distribution.  At closing, InfoSpace’s cash position is expected to be in excess of $400 million.

Jon C. Ogg
September 17, 2007

Opentv (OPTV) CEO leaves. Down to $1.23 from 52-week high of $3.15.

Infospace (INSP) Has not recoved from tough quarter. Still slipping. Down to $13.72 from 52-week high of $27.76.

Ikanos (IKAN) Falling for several days after cutting outlook. Down to $5.83 from 52-week high of $13.70.

Douglas A. McIntyre

Reuters writes the net income and sales rose at News Corp (NWS).

Reuters reports that Wal-Mar (WMT) will use Facebook to improve its back to school sales.

The Wall Street Journal writes that Google (GOOG) will allow people cited in stories that it picks up to post comments.

The WSJ writes that Toll’s (TOL) home-building revenue fell 21%.

The WSJ writes that Blockbuster (BBI) has purchased movie download service Movielink.

The WSJ reports that Toyota (TM) will delay launching its new battery-powered hybrids due to safety concersn.

The WSJ reports that by year-end  firms based in China will represent the single largest number of overseas firms listed on the Nasdaq

The WSJ says GM (GM) and Toyota (TM) have cut their forecasts for industry sales this year.

The WSJ writes thta results from cable and telecom companies show that internet growth may be slowing.

The WSJ writes that Dell’s (DELL) former CEO will receive $48.5 million for his stock options.

The New York Times writes that a private equity firm has invested in the new NBC-News Corp (NWS) online venture

The FT  writes that US car dealers need to improve their image if the industry is to get more leverage in Washington.

Barron’s writes that shares in Infospace (INSP) fell on poor results.

Douglas A. McIntyre