Adobe Systems Inc. (NASDAQ: ADBE) is trading down 2.5% at $31.95 on about 150,000 shares after issuing mostly in-line earnings and guidance.

BP plc (NYSE: BP) is up 1.85% at $30.23 after the $29.00 low of the last 52-weeks was not violated yesterday during the sell-off.  Right before 9 AM EST there still have not been 1 million ADRs that have traded hands.

CarMax Inc. (NYSE: KMX) is rallying after the company beat earnings as revenue rose about 23% from the same quarter a year ago.  Shares are up 10% at $22.00 on right about 100,000 shares.

Chimera Investment Corporation (NYSE: CIM) filed to sell 100 million shares to finance the acquisition of residential mortgage-backed securities; shares are down 2% at $3.74 on over 2.5 million shares.

IncrediMail Ltd. (NASDAQ: MAIL) traded up on news that could go either way.  The company renewed its year old pact with Google  to the end of 2010 and it says it is still looking for diversified partnerships.  Shares closed at $5.26 and are up about 5.5% at $5.55, but the trading volume is paltry so far an not even 10,000 shares.

PPL Corporation (NYSE: PPL) is down after selling 90 million shares at $24.00 to help finance its E. On purchase; shares are trading up 0.3% at $24.32 after a $24.24 close and over 2.5 million shares have traded so far.

Red Hat Inc. (NYSE: RHT) earnings did not drive the stock last night: $0.18 on $209 million versus Thomson Reuters $0.18 and $202.89 million. Shares were down 3% last night but this morning shares seem to be just over $31.00 after closing at $30.86.

Rite Aid Corp. (NYSE: RAD) is running higher this morning as the trouble pharmacy turnaround posted a narrower loss than expected.  Shares are up about 13% at $1.14 on over 500,000 shares.

Royal Gold, Inc. (NASDAQ: RGLD) is trading lower after pricing its secondary offering of 5.2 million shares at $48.50 after a $51.28 close yesterday. Shares are down 5.2% at $48.60 on 245,000 shares.

iShares MSCI All Country Asia ex-Japan Index (NASDAQ: AAXJ) traded up 1.4% at $55.18 on 1.4 million shares; may be a carry-over trade.

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JON C. OGG

Bank of America Corp. (NYSE: BAC) is defying headlines with a 2% gain.

Canadian Solar Inc. (NASDAQ: CSIQ) is soaring over 20% on strong earnings and guidance.

Cisco Systems inc. (NASDAQ: CSCO) is holding up better than we’d have expected with a mere drop of 1% after earnings guidance was lackluster.

FUQI International Inc. (NASDAQ: FUQI) is showing why this was the IBD 100 #1 Chart this last weekend.  New highs are being hit.

IncrediMail Ltd. (NASDAQ: MAIL) is hitting 52-week highs after showing growth in earnings and revenues.

Oshkosh Corporation (NYSE: OSK) is down another 5% at $28.85 on thin volume we expect to grow after it announced a secondary offering last night.

The 24/7 Wall Street Team

What is interesting is that it claims this was an "AdSense partnership" with the company, although Adsense is a program that anyone can set up on their website with a few simple lines of code.  Google has disabled ads to search result pages displayed through IncrediMail’s account.

That’s not too good, and the only thing that comes to mind is a highly unusual amount of clicks or the belief that robots are pinging ads.  We don’t know if Click Fraud was the reason or not and frankly don’t want to speculate without comments from both sides, but that is the first thing that comes to mind.  IncrediMail also noted that in both 2006 and 2007, search revenues powered by Google’s AdSense program made a significant contribution to its results.

IncrediMail said it is currently clarifying the matter with Google and simultaneously exploring alternative relationships, with Google and other vendors.  The bad news is that if there was a serious impropriety then another advertiser is going to either be reluctant to take over the relationship.  The good news is that if that wasn’t the case then Yahoo! (NASDAQ:YHOO) or Time Warner’s (NYSE:TWX) AOL and Advertising.com properties have a potential huge new account.

IncrediMail isn’t based in the U.S.  It is out of Israel and self-described itself as "a global leader in email solutions and offers products that create an entertaining email experience."  It also says on its website, "IncrediMail generates revenues by selling premium software products, offering subscriptions to its content database, licensing and co-branding the Incredi- brand to operators of third-party websites; and by selling paid advertising, sponsored links and keyword search capabilities on IncrediMail’s website and email client."

It appears that there is only 43,000 or so shares trading on an average day.  Today shares fell about 29% down to $3.24 on more than 790,000 shares, under the 52-week trading range of $4.46 to $10.69. Ouch.  Shares slid further in after-hours trading down to $2.93.  At the close, IncrediMail had a market cap of $30.45.

Some chat rooms are claiming that this is now close to its cash values, although we aren’t positive if that is really the case if you back out the potential woes here.  The truth is that it is simple to turn on a new program as it is only a simple code to install.  But if there are issues with the company’s programs having highly unusual activity, then AOL and Yahoo! will either not take them on at all or they’ll only take them on at a significantly discounted rate.  We could speculate and we could comment on what others are saying online, but we’ll leave that to the company itself.

Jon C. Ogg
January 11, 2008