Among the picks, two stand-out names were Itron, Inc. (NASDAQ: ITRI) and Acuity Brands, Inc. (NYSE: AYI).  RuggedCom is another pick, although it is a Canadian company.

Itron, Inc. (NASDAQ: ITRI) was maintained as Buy: “…we remain decidedly contrarian as shares continue to trough, yet the multi-year Smart Grid product cycle continues to unfold through mid-decade. We favor the company’s strong market share and FCF generation capabilities (10%+ FCF yield), ongoing restructuring efforts, share buyback and active M&A program against current investor concerns about ’12 & ’13 EPS power and European exposure. We find recently reinstalled CEO LeRoy Nosbaum acting with an appropriate degree of urgency to catalyze value creation at the current share price.”

Acuity Brands, Inc. (NYSE: AYI) was maintained as Buy: “We believe that LEDs will help accelerate Acuity’s traditional sales over time while growing to become accretive to the business model. As such, we see the potential for $3.50 to $4.00 in earnings power per share in 2013/2014 as the secular trend starts to manifest. We remain aggressive buyers on pullbacks from the fits and starts in the non-residential construction markets, and we view 2012 as the right time to build a meaningful position in the shares.”

RuggedCom is a Canadian company which trades as “RCM” in Toronto and Canaccord Genuity noted, “We find management execution impressive, as RuggedCom continues to generate above-market growth with industry-leading profitability. The core industrial switch/router business continues on its growth trajectory, while the achievement of profitability within the wireless business is a notable milestone… we find risk/reward attractive here.”

JON C. OGG

The DJIA jumped above 12,000 in the opening minutes of trading this morning and had topped 12,200 by mid-afternoon. European Union leaders have agreed on a deal that would make up to $1.4 trillion as a bailout fund for troubled European banks, offer a 50% haircut to Greek debt holders, and recapitalize the continent’s banks. Apparent euphoria over the deal in Europe caused investors to miss the weak number on pending home sales. The euro rose to more than $1.42, its highest level in nearly two months, and oil prices were about $3/barrel higher this morning and had gained nearly another dollar by mid-afternoon. The day closed with a few uncertainties still remaining on the agreement announced earlier in Europe.

The unofficial closing bells put the DJIA up nearly more than 340 points to 12,209.23 (2.87%), the NASDAQ rose nearly 88 points (3.32%) to 2,738.63, and the S&P 500 rose 3.43% or more than 42 points to 1,284.54.

There were several analyst upgrades and downgrades today, including Ford Motor Co. (NYSE: F) maintained at ‘neutral’ with price target cut from $16 to $14 at Credit Suisse; Netflix Inc. (NASDAQ: NFLX) cut to ‘neutral’ at Citigroup (ahem!); Itron Inc. (NASDAQ: ITRI) started at ‘outperform’ with a $60 price target at Credit Suisse and maintained at ‘buy’ with a $50 target at Canaccord Genuity; Visa Inc. (NYSE: V) cut to ‘market perform’ at FBR; and Range Resources Corp. (NYSE: RRC) reiterated at ‘sell’ by Canaccord Genuity.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Proctor & Gamble Co. (NYSE: PG) up about 0.5%, at $65.25; Colgate Palmolive Co. (NYSE: CL) up about 1%, at $91.49; Exxon Mobil Corp. (NYSE: XOM) up 0.84%, at $81.75; Occidental Petroleum Corp. (NYSE: OXY) up nearly 11%, at $96.59; Barrick Gold Corp. (NYSE: ABX) up nearly 2.5%, at $48.98; Johnson Controls Inc. (NYSE: JCI) up 2.2%, at $33.32; Bristol Meyers Squibb Co. (NYSE: BMY) up 1.8%, at $33.10; and Altria Group Inc. (NYSE: MO) up 1.5%, at $27.69.

Several other standouts from today are as follows…

QuickLogic Corp. (NASDAQ: QUIK) is up nearly 25%, at $2.87. The company announced an agreement under which mobile phone maker Kyocera will use QuickLogic chips in new products for the Japanese market.

Kelly Services, Inc. (NASDAQ: KELYB) is up nearly 28%, at $16.75. The company is set to announce earnings on November 9th, and is glimmering in the glow of a solid earnings report today from Monster Worldwide, Inc. (NYSE: MWW).

LDK Solar Co. Inc. (NYSE: LDK) is up more than 21%, at $4.00. Germany has announced another cut to its solar power feed-in tariff at the first of the year, and that could unleash a horde of new projects to take advantage of the current higher tariff rate.

Century Aluminum Co. (NASDAQ: CENX) is up more than 19%, at $11.74. The company reported an EPS loss yesterday, even though sales were up 24%. Investors must like the revenue report more than they hate the EPS loss.

McDermott International Inc. (NYSE: MDR) is down nearly -26%, at $10.85. The engineering and construction company lowered its third-quarter profit and revenue guidance. Analysts were expecting EPS of $0.29 and McDermott is now saying EPS will be just $0.03-$0.05.

Avon Products, Inc. (NYSE: AVP) is down about -18%, at $18.87. The company missed its earnings expectations, but the worse news is that the SEC have begun a formal investigation into bribery charges against the company for actions it took in foreign markets.

Stay tuned for Friday.  We have noted the following events (all times Eastern):

• 8:30 a.m. – Consumer spending
• 8:30 a.m. – Employment cost index
• 9:55 a.m. – Reuters/University of Michigan consumer sentiment index

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Paul Ausick

Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) named Bull of the Day at Zacks.
Bank of America Corporation (NYSE: BAC) Cut to Equal-weight at Morgan Stanley.
Ford Motor Co. (NYSE: F) Maintained Neutral and cut target to $14 from $16 at Credit Suisse.
Hospira Inc. (NYSE: HSP) Raised to Buy at BofA/ML, but named Bear of the Day at Zacks.
Itron Inc. (NASDAQ: ITRI) Started as Outperform with $60 target at Credit Suisse; maintained Buy and $50 target at Canaccord Genuity.
Kindred Healthcare, Inc. (NYSE: KND) named as Value stock of the day at Zacks.
Netflix, Inc. (NASDAQ: NFLX) Cut to Neutral at Citigroup (boy, how timely).
Praxair Inc. (NYSE: PX) Cut to Underperform from Buy at BofA/ML.
Range Resources Corporation (NYSE: RRC) Reiterated Sell at Canaccord Genuity.
Tim Hortons, Inc (NYSE: THI) Started as Neutral at Credit Suisse.
Urban Outfitters Inc. (NASDAQ: URBN) Raised to Buy at Citigroup.
Visa Inc. (NYSE: V) Cut to Market Perform at FBR.

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JON C. OGG

Altera Corporation (NASDAQ: ALTR) Cut to Hold at Auriga.
Dow Chemical (NYSE: DOW) Started as Hold at Jefferies.
Dunkin Brands Group Inc. (NASDAQ: DNKN) Started as Hold at Argus.
HSBC Holdings plc (NYSE: HBC) target cut at Macquarie.
Itron Inc. (NASDAQ: ITRI) Cut to Underperform at BofA/ML.
Koninklijke Philips Electronics (NYSE: PHG) named as Bear of the day at Zacks.
Steven Madden Limited (NASDAQ: SHOO) named value stock of the day at Zacks.
Western Refining, Inc (NYSE: WNR) named Aggressive Growth stock of the day at Zacks.

JON C. OGG

Advanced Micro Devices Inc. (NYSE: AMD) Raised to Buy at UBS.
Alkermes plc (NASDAQ: ALKS) Raised to Buy at Jefferies.
AmSurg Corporation (NASDAQ: AMSG) named Bull of the Day at Zacks.
Electronic Arts Inc. (NASDAQ: ERTS) Maintained Neutral but raised estimates at Janney.
Expedia Inc. (NASDAQ: EXPE) Raised to Overweight at Piper Jaffray.
First Solar Inc. (NASDAQ: FSLR) Raised to Hold at Maxim Group.
Great Plains Energy Incorporated (NYSE: GXP) Raised to Conviction Buy List at Goldman Sachs.
Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) Started as Buy with $130 target at Argus.
Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) Started as Neutral at Credit Suisse.
Itron Inc. (NASDAQ: ITRI) Started as Overweight at Morgan Stanley.
Netflix, Inc. (NASDAQ: NFLX) Raised to Buy at Merriman.
Occidental Petroleum Corporation (NYSE: OXY) Raised to Buy at Citigroup.
Sara Lee Corporation (NYSE: SLE) named Bear of the Day at Zacks.
United Technologies Corporation (NYSE: UTX) Raised to Overweight at Morgan Stanley.

Also, here are the top analyst calls of the last week which carry over far beyond just the day and week.

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JON C. OGG

American Electric Power Co., Inc. (NYSE: AEP) has outlined the charges, the impact on jobs and prices, and more for the new EPA rules being proposed.  It is asking for relief, and what the company is giving for projections may only add pressure on the entire sector of utilities.  The ETFs include Utilities Select Sector SPDR (NYSE: XLU), iShares Dow Jones US Utilities (NYSE: IDU), Rydex S&P Equal Weight Utilities (NYSE: RYU).  Those three ETFs are all down 3% to 4% from their very recent highs.  The ProShares Ultra Utilities (NYSE: UPW) uses leverage, so it is down more from highs than peers with a drop of more than 5.5%; it is also up almost 50% from its year lows.

Entergy Corporation (NYSE: ETR) has been the dog of the utility and power generation sector.  At $67.60, its shares are down more than 16% from the peak and are only up about 4.5% from its 52-week low.  Thomson Reuters has a consensus price target of only $73.96.

American Electric Power Co., Inc. (NYSE: AEP) is down about 4% from its recent highs, but many peers are now down over 5% from highs and some of the weaker utilities are approaching the double-digit drop level now.  AEP outlined the billions of dollars that the plan will cost ahead.  Before wondering just how much they tacked on for a total cost, the skeptics need to look at a fresh report that recently came out from the Electric Power Research Institute just for a smart grid being some $500 billion. This will be a boom for companies like Itron, Inc. (NASDAQ: ITRI) for its smart meters, but the valuation has been high there and its shares have been challenging 52-week lows of late.

American Electric Power’s figures, pleads, and complaints comes to rather long list that we chopped down so you wouldn’t have to read a tome.  The notations about the new proposed EPA rules are as follows:

• AEP’s compliance plan would retire nearly 6,000 megawatts of coal-fired power generation;
• upgrade or install new advanced emissions reduction equipment on another 10,100 MW;
• refuel 1,070 MW of coal generation as 932 MW of natural gas capacity;
• build 1,220 MW of natural gas-fueled generation.
• The cost of the AEP compliance plan could range from $6 billion to $8 billion in capital investment through 2020.
• High demand for labor and materials due to a constrained compliance time frame could drive actual costs higher.
• Retirement and retrofit costs in the plan are in addition to more than $7.2 billion that AEP has invested since 1990 to cut emissions from its coal plants.
• AEP claims that annual emissions of nitrogen oxides from its plants are down 80% from 1990.
• AEP currently owns nearly 25,000 MW of coal-fueled generation, about 65% of its total generating capacity. Coal would still fuel about 57% of AEP’s total generating capacity by the end of the decade.
• “…the cumulative impacts of the EPA’s current regulatory path have been vastly underestimated, particularly in Midwest states dependent on coal to fuel their economies.”
• “…because of the unrealistic compliance timelines in the EPA proposals, we will have to prematurely shut down nearly 25 percent of our current coal-fueled generating capacity, cut hundreds of good power plant jobs, and invest billions of dollars in capital to retire, retrofit and replace coal-fueled power plants.”
• AEP says the sudden increase in electricity rates and impacts on state economies will be significant.
• While some jobs would be created, AEP expects a net loss of approximately 600 power plant jobs with annual wages totaling approximately $40 million under the proposed EPA rules.
• Businesses will face the impact of electricity price increases by 10% to over 35% just for compliance with these environmental rules.
• The proposed timelines for compliance aren’t adequate for construction of significant retrofits or replacement generation.
• AEP’s compliance plan alone would abruptly cut generation capacity in the Midwest by more than 5,400 MW. AEP plans to keep speaking with lawmakers (i.e. lobbying) in Washington about a legislative approach that would achieve the same long-term goals with lower economic and jobs toll.
• Plants to be permanently retired are as follows:

1. Glen Lyn Plant, Glen Lyn, Va. – 335 MW (retired by Dec. 31, 2014);
2. Kammer Plant, Moundsville, W.Va. – 630 MW (retired by Dec. 31, 2014);
3. Kanawha River Plant, Glasgow, W.Va. – 400 MW (retired by Dec. 31, 2014);
4. Phillip Sporn Plant, New Haven, W.Va. – 1,050 MW (450 MW expected to retire in 2011, 600 MW retired by Dec. 31, 2014); and
5. Picway Plant, Lockbourne, Ohio – 100 MW (retired by Dec. 31, 2014).

• AEP would retire generating units at the following locations but continue operating some generation at the sites:

1. Big Sandy Plant, Louisa, Ky. – Units 1 and 2 (1,078 MW) retired by Dec. 31, 2014;
2. Big Sandy Unit 1 would be rebuilt as a 640-MW natural gas plant by Dec. 31, 2015;
3. Clinch River Plant, Cleveland, Va. – Unit 3 (235 MW) retired by Dec. 31, 2014; Units 1 and 2 (470 MW total) would be refueled with natural gas with a capacity of 422 MW by Dec. 31, 2014;
4. Conesville Plant, Conesville, Ohio – Unit 3 (165 MW) retired by Dec. 31, 2012; Units 5 and 6 (800 MW total) would continue operating with retrofits;
5. Muskingum River Plant, Beverly, Ohio – Units 1-4 (840 MW) retired by Dec. 31, 2014; Muskingum River Unit 5 (600 MW) may be refueled with natural gas with a capacity of 510 MW by Dec. 31, 2014, depending on regulatory treatment in Ohio;
6. Tanners Creek Plant, Lawrenceburg, Ind. – Units 1, 2 and 3 (495 MW) retired by Dec. 31, 2014; Unit 4 (500 MW) would continue to operate with retrofits; and
7. Welsh Plant, Pittsburg, Texas – Unit 2 (528 MW) retired by Dec. 31, 2014; Units 1 and 3 (1,056 MW) would continue to operate with retrofits.

• AEP also said that it will complete construction of the Dresden Plant (580 MW natural gas) in Dresden, Ohio, in 2012 and, in addition to retrofits already noted, it would install or upgrade emissions reduction equipment at seven other coal-fueled power plants in Arkansas, Indiana, Louisiana, Ohio and Texas.

So, as you probably deduced… this matters.  Environmentalists and capitalists will argue over AEP’s claims and figures.  It doesn’t really matter.  This is now the new risk profile and is likely a new starting point.  Our take is that AEP is still one of our top stocks to own for the next decade.  We always maintained that these shares should be bought on a pullback rather than chased.  AEP shares are only about 3.8% off the 52-week highs.  If more weakness comes in on the shares, that is when long-term opportunists should really consider positions.  Analysts from Thomson Reuters show a consensus price target of $39.69 and the stock trades now at just under 12-times a blended forward earnings estimate.

With consolidation opportunities ahead in the world of adjacent utilities, we have scribbled out that the long-term opportunity for AEP could theoretically reach $5.00 in earnings per share over the next decade. Our own multiple is a fair 10-times earnings and that generates a raw price target of about $50.00 at some point, discounted two or three years out.  That gives a five-year to seven-year parameter, but remember that AEP pays almost a 5% dividend yield as well and it has a history of dividend hikes.

Today’s news is something we are merely looking at as a starting point rather than as gospel.  The risks are many, but the reality is that electric power demand is likely to only rise over the next decade.  AEP can navigate this storm, but the real impact that investors need to consider is more of a sector risk rather than just one company’s projection of $6 to $8 billion spent over the coming decade.

JON C. OGG

AEGON (NYSE: AEG) Raised to Buy at BofA/ML.
AFLAC Inc. (NYSE: AFL) Cut to Equal Weight at Morgan Stanley.
The Andersons, Inc. (NASDAQ: ANDE) Reiterated Buy as Value at Zacks.
Blue Coat Systems, Inc. (NASDAQ: BCSI) Reiterated Underperform and cut target to $20 at BofA/ML.
Broadcom Corporation (NASDAQ: BRCM) Raised to Top Pick at FBR Capital Markets.
Computer Sciences Corp. (NYSE: CSC) Reiterated Underperform as Bear of the Day at Zacks.
Dendreon Corporation (NASDAQ: DNDN) Maintained Underperform with $29 target at Credit Suisse.
Entergy Corporation (NYSE: ETR) Raised to Outperform at Wells Fargo.
Itron, Inc. (NASDAQ: ITRI) Cut to Underperform at Baird.
Red Robin Gourmet Burgers (NASDAQ: RRGB) Raised to Outperform as Bull of the Day at Zacks.
UIL Holdings Corp. (NYSE: UIL) Cut to Hold at Argus.
Weyerhaeuser Co. (NYSE: WY) Cut to Sell at Deutsche Bank.

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

ABB Ltd. (NYSE: ABB) Raised to Outperform at Credit Suisse; Raised to Buy at Deutsche Bank.
Bank of America Corp. (NYSE: BAC) Maintained Underperform as Bear of the Day at Zacks.
The Bank of New York Mellon Corporation (NYSE: BK) Cut to Equal Weight at Morgan Stanley.
Barrick Gold Corporation (NYSE: ABX) Raised to Buy at Stifel Nicolaus.
Chevron Corp. (NYSE: CVX) Started as Buy at Jefferies.
The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE) Cut to Neutral at JPMorgan.
Coca-Cola Femsa (NYSE: KOF) Raised to Buy at BofA/ML.
ConocoPhillips (NYSE: COP) Cut to Hold at Deutsche Bank; Raised to Buy at S&P Equity Research.
eBay Inc. (NASDAQ: EBAY) Raised to Buy at Stifel Nicolaus.
Evergreen Solar Inc. (NASDAQ: ESLR) Cut to Sell at Wunderlich.
EI DuPont de Nemours & Co. (NYSE: DD) Maintained Outperform as Bull of the Day at Zacks.
Hess Corporation (NYSE: HES) Raised to Outperform at Credit Suisse.
Intel Corporation (NASDAQ: INTC) Maintained as Strong Buy and Value at Zacks.
Itron, Inc. (NASDAQ: ITRI) Cut to Sell at Wunderlich.
Juniper Networks Inc. (NYSE: JNPR) Reiterated Buy and $49 target at Argus.
LM Ericsson Telephone Co. (NASDAQ: ERIC) Raised to Buy at Deutsche Bank.
National Oilwell Varco, Inc. (NYSE: NOV) Raised to Buy at Citigroup.
Patterson-UTI Energy Inc. (NASDAQ: PTEN) Raised to Neutral at Goldman Sachs.
Urban Outfitters Inc. (NASDAQ: URBN) Cut to Market Perform at William Blair.
Yum! Brands Inc. (NYSE: YUM) Reiterated Buy and Raised target to $62 at Argus.

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

Westport Innovations Inc. (NASDAQ: WPRT) was first on the overbought list with 88 RSI and 39% from its 200 day moving average.

Clean Energy Fuels Corporation (NASDAQ: CLNE) was in the middle of the overbought list with a 77.5 RSI and 18% from its 200 day moving average.  Fuel Systems Solutions, Inc. (NASDAQ: FSYS) was also noted as one that won’t benefit that much from legislative gains in fuels.

What is interesting is that BofA said it was increasing its Wind sector to equal-weight but continues to avoid the turbine makers.  After what we saw with American Superconductor Corporation (NASDAQ: AMSC) this week (AMSC-Sinovel pact noted as huge concern) it is hard to wonder how wind was positive at all.

SmartGrid stocks were lowered to equal-weight with a 13% decline in the first quarter.  Companies like Cree Inc. (NASDAQ: CREE), Itron, Inc. (NASDAQ: ITRI), and even EnerNOC, Inc. (NASDAQ: ENOC) were all noted as seeing most of the damage being done but with no quick snapback for most.  LED and meter-demand is called “lumpy, but rising through time.”

Storage is actually looked at somewhat favorably.  A123 Systems, Inc. (NASDAQ: AONE) and Ener1, Inc. (NASDAQ: HEV) are both being called oversold and it was noted as surprising that  higher oil prices have not helped.

BofA is one of many firms which have mixed views on CleanTech ahead.  The moves in March from Japan have likely contributed to even more of the confusion on top of the recent gains in oil due to Middle East turmoil and supply disruptions.

JON C. OGG

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index ETF (NASDAQ: GRID).  Make no mistake, only the components matter here as the ETF is so small and so thinly traded that it has generally been forgotten about by most traders and investors.  At $34.01, its 52-week trading range is $26.84 to $35.23.  Here is a list of the components, which is actually a global list rather than just being US-listed base of companies.

Siemens AG (NYSE: SI) trades at $132.34 per ADR and its 52-week trading range is $82.74 to $135.45.  So far it is holding up rather well considering its European base and the troubles in the E.U. and the lands of the PIIGS so far.  As a reminder, all “M&A chatter” is counted as nothing more than a rumor until a deal is announced.

JON C. OGG