The unofficial closing bells put the DJIA down nearly 3 points to 12,415.70 (-0.02%), the NASDAQ rose more than 21 points (0.81%) to 2,669.86, and the S&P 500 rose 0.29% or nearly 4 points to 1,281.05.

There were several analyst upgrades and downgrades today, including Broadcom Corp. (NASDAQ: BRCM) maintained ‘buy’ with a $46 target price at Argus; Netflix Inc. (NASDAQ: NFLX) maintained ‘underperform’ and estimates cut at Needham; Nokia Corp. (NYSE: NOK) raised to ‘outperform’ at Credit Suisse; Google Inc. (NASDAQ: GOOG) cut to ‘hold’ at Benchmark; and VMWare Inc. (NYSE: VMW) started as ‘buy’ at Sterne Agee.

Earnings reports of note since markets closed yesterday include: Constellation Brands Inc. (NYSE: STZ) is down about -3.5% at $19.72; Monsanto Co. (NYSE: MON) is up more than 5.5% at $76.70; Worthington Industries Inc. (NYSE: WOR) is down -0.6% at $17.55; and Helen of Troy Ltd. (NASDAQ: HELE) is up more than 4% at $32.73.

Other standouts from today include the following stocks:

Dendreon Corp. (NASDAQ: DNDN) is up nearly 40% at $10.61. The biotech company reported a sales jump of 25% for its prostate cancer drug. The company is one of our top biotech picks for 2012.

Ancestry.com, Inc. (NASDAQ: ACOM) is up more than 21% at $27.69. The internet genealogy provider reported a 22% rise in subscribers and forecast sales growth for 2012 of more than 14%.

Zumiez Inc. (NASDAQ: ZUMZ) is up nearly 17% at $30.74 after posting a new 52-week high earlier of $30.94. The sports apparel company reported a 10% same-store sales gain and raised guidance this morning. See our coverage here.

Orchard Supply Hardware Stores (NYSE: OSH) is down nearly -25% at $16.70. The home improvement store held its IPO on Monday and today provided a weak outlook for 2012.

Barnes & Noble Inc. (NYSE: BKS) is down more than -17% at $11.25. The bookstore chain said today that it is considering spinning off its Nook e-reader unit as a strategic option. Our coverage is available here.

American Eagle Outfitters Inc. (NYSE: AEO) is down more than -10% at $13.61. The clothing retailer slashed its fourth-quarter profit guidance by nearly a quarter.

Stay tuned for Friday. Federal Reserve Governors Elizabeth Duke and Sarah Bloom Raskin are speaking, as are Boston Fed President Eric Rosengren and New York Fed President William Dudley. Here are the noteworthy events on the schedule (all times Eastern):

• 8:30 a.m. – Employment reports, including non-farm payrolls
• 3:00 p.m. – US Treasury STRIPS

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The unofficial closing bells put the DJIA up about 21 points to 12,418.57 (0.17%), the NASDAQ fell less than 1 point (-0.01%) to 2,648.36, and the S&P 500 rose 0.02% or less than 1 point to 1,277.31.

There were several analyst upgrades and downgrades today, including EMC Corp. (NYSE: EMC) added to ‘US Focus List’ at Credit Suisse; General Dynamics Corp. (NYSE: GD) raised to ‘overweight’ at JPMorgan; Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reiterated ‘buy’ with $94 target price at Canaccord Genuity; Potash Corp. of Saskatchewan Inc. (NYSE: POT) started as ‘underperform’ at National Bank; and Tivo Inc. (NASDAQ: TIVO) raised to ‘overweight’ at Evercore Partners.

Earnings reports of note since markets closed yesterday include: Unifirst Corp. (NYSE: UNF) is up more than 3% at $59.83; and Progress Software Corp. (NASDAQ: PRGS) is down more than -11% at $17.55. Tomorrow sees earnings from Constellation Brands Inc. (NYSE: STZ), Monsanto Co. (NYSE: MON), and Family Dollar Stores Inc. (NYSE: FDO) among others.

Other standouts from today include the following stocks:

LCA-Vision Inc. (NASDAQ: LCAV) is up more than 40% at $4.33. The laser vision correction system provider said that it performed more than 14,000 procedures in the fourth quarter, up 30% year-over-year.

Rare Element Resources Ltd. (AMEX: REE) is up more than 27% at $4.53. The rare earths miner announced that its resource at the company’s Bear Lodge project is 38% higher than previously believed.

Netflix Inc. (NASDAQ: NFLX) is up nearly 11% at $80.02. The video distributor reported that it streamed more than 2 billion hours of video in the fourth quarter. More details on this story are available here.

Acme Packet Inc. (NASDAQ: APKT) is down more than -19% at $25.65, after posting a new 52-week low of $25.20 early this morning. The networking company warned on earnings last night. We have more coverage here.

Life Partners Holdings Inc. (NASDAQ: LPHI) is down more than -15% at $5.38. The life insurance company has been accused of accounting fraud by the US Securities and Exchange Commission.

Stay tuned for Thursday. Here are the noteworthy events on the schedule (all times Eastern):

• 7:30 a.m. – Challenger Gray & Christmas job-cut report
• 8:15 a.m. – ADP employment report
• 8:30 a.m. – Weekly initial unemployment benefits claims report
• 10:00 a.m. – ISM non-manufacturing index
• 10:30 a.m. – EIA weekly natural gas report
• 11:00 a.m. – EIA weekly petroleum status report
• 4:30 a.m. – Federal Reserve balance sheet and money supply reports

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We have provided an earnings preview on each, shown pricing data, and added color if applicable.

Nike Inc. (NYSE: NKE) reports on Monday. Thomson Reuters estimates for the sporting goods and apparel giant are $1.16 EPS and $5.54 billion in revenues; next quarter estimates are $1.27 EPS and $5.67 billion in revenues.  With shares around $81.40, its 52-week trading range is $66.34 to $92.49.  This one has recovered a bit after getting hit on its last earnings report when shares fell to $77 from $85 before the report.

Wednesday…

American Greetings Corporation (NYSE: AM) is due with its gift and greeting card earnings. Thomson Reuters estimates are $0.78 EPS and next quarter estimates are $0.27 EPS.  With shares around $23.62, its 52-week trading range is $17.89 to $24.75. Why do we all accept paying so much for greeting cards?

Family Dollar Stores Inc. (NYSE: FDO) is due to report on Wednesday.  Thomson Reuters estimates are $0.95 EPS and $2.17 billion in revenues; next quarter estimates are $0.65 EPS and $2.12 billion in revenues.  With shares around $52.25, its 52-week trading range is $35.31 to $56.92.  After the buyout interest was there and with sector consolidation being well documented, we’ll be paying close attention to ‘non-earnings news.’

General Mills Inc. (NYSE: GIS) will show us more about how the food business is going.  Thomson Reuters estimates are $0.52 EPS and $3.68 billion in revenues; next quarter estimates are $0.69 EPS and $3.7 billion in revenues.  With shares around $37.00, its 52-week trading range is $33.11 to $40.00.

KB Home (NYSE: KBH) is due with its homebuilder earnings.  Thomson Reuters estimates are -$0.32 EPS and $257.05 million in revenues; next quarter estimates are -$0.05 EPS and $384.54 million in revenues.  With shares around $11.75, its 52-week trading range is $9.43 to $16.11.

Monsanto Co. (NYSE: MON) will be key to watch as it has been in a turnaround mode.  Thomson Reuters estimates are $1.11 EPS and $3.38 billion in revenues; next quarter estimates are -$0.18 EPS and $2.05 billion in revenues.  With shares around $66.00, its 52-week trading range is $44.61 to $76.69.

Thursday…

Apollo Group Inc. (NASDAQ: APOL) is going to turn in its online university earnings, and we’ll get to see how much the pressure added when these were under the Washington scrutiny. Thomson Reuters estimates are $1.34 EPS and $1.2 billion in revenues; next quarter estimates are $0.92 EPS and $1.09 billion in revenues.  With shares around $42.00, its 52-week trading range is $33.75 to $53.61.

Constellation Brands Inc. (NYSE: STZ) is due and Thomson Reuters estimates are $0.38 EPS and $648.48 million in revenues; next quarter estimates are $0.59 EPS and $715.92 million in revenues.  With shares around $20.83, its 52-week trading range is $14.97 to $23.19.

Darden Restaurants Inc. (NYSE: DRI): Thomson Reuters estimates are $1.00 EPS and $1.99 billion in revenues; next quarter estimates are $0.92 EPS and $1.92 billion in revenues.  With shares around $48.52, its 52-week trading range is $37.08 to $52.12.  This is one which we think can eventually challenge McDonald’s for the high dividends.

McCormick & Co Inc. (NYSE: MKC) will show the food and spices earnings. Thomson Reuters estimates are $0.54 EPS and $855.16 million in revenues; next quarter estimates are $0.70 EPS and $858.17 million in revenues.  With shares around $50.00, its 52-week trading range is $37.37 to $50.68.

Schnitzer Steel Industries Inc. (NASDAQ: SCHN) is historically not a sector moving stock but right now it seems that investors want guidance of any bit from any company.  Thomson Reuters estimates are $1.19 EPS and $831.16 million in revenues; next quarter estimates are $1.25 EPS and $841.31 million in revenues.  With shares around $53.05, its 52-week trading range is $37.00 to $69.43.

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JON C. OGG

American Express Co. (NYSE: AXP) Raised to Buy at Argus.
Atmel Corporation (NASDAQ: ATML) Raised to Strong Buy from Buy at Needham.
Clearwire Corporation (NASDAQ: CLWR) Cut to Sector Perform at RBC.
Constellation Brands Inc. (NYSE: STZ) Started as Neutral at Credit Suisse.
CTC Media (NASDAQ: CTCM) Cut to Hold at Citigroup.
Expedia Inc. (NASDAQ: EXPE) Raised to Buy at S&P Equity Research (late Thursday call).
Fair Isaac Corp. (NYSE: FICO) Raised to Hold at S&P Equity Research.
Intel Corporation (NASDAQ: INTC) Raised to Buy at Roth Capital.
Marvell Technology Group Ltd. (NASDAQ: MRVL) Raised to Buy at Roth Capital.
MetroPCS Communications, Inc. (NYSE: PCS) Raised to Outperform at Oppenheimer; Credit Suisse issued Short-Term Buy and Raised target to $13 from $11.
Microsoft Corporation (NASDAQ: MSFT) Reiterated Outperform and $36 target at Credit Suisse.
NVIDIA Corporation (NASDAQ: NVDA) Raised to Buy at Roth Capital.
Portugal Telecom SGPS SA (NYSE: PT) Cut to Underperform at BNP Paribas.
U.S. Cellular Corp. (NYSE: USM) Cut to Sell at S&P Equity Research/

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JON C. OGG

Altria Group Inc. (NYSE: MO) is hard to really reference in a direct comparison because many pot smokers are not cigarette smokers.  The company does own an interest in SAB/Miller.  Shares are indicated up around $25.65 after closing at $25.57 yesterday.  Keep in mind that Altria shares are at multi-year highs.

Anheuser-Busch InBev (NYSE: BUD) is now global, so one market might not have mattered anyway.  Shares are down 2.6% at $61.82.

Brown-Forman Corporation (NYSE: BF-B) is indicated flat after a $61.22 close and its market cap is nearly $9 billion.  Some of its brands are Jack Daniel’s, Southern Comfort, Herradura, Finlandia, Jekel Vineyards, Gentleman Jack, Korbel California Champagnes, Michel Picard Wines, New Mix Ready-to-Drinks brands, and many more.

Constellation Brands Inc. (NYSE: STZ) is indicated flat after a $19.52 close and its market cap is roughly $4.1 billion.  Brands are Mondavi, Franciscan and others for wine; it imports imports, markets, and sells Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, St. Pauli Girl, and Tsingtao for beer; and Svedka, Black Velvet, and others in spirits.

Diageo plc (NYSE: DEO) is also an ADR and its market cap is north of $46 billion, although its shares are up 1% at $75.36.  Its brands are Crown Royal, Seagrams, Johnnie Walker, Smirnoff, Baileys Irish Cream, Captain Morgan, Jose Cuervo, Tanqueray, Guinness, and more.

Molson Coors Brewing Company (NYSE: TAP) reported earnings of more than $256 million; shares are up 2.2% at $48.25 this morning.

The interesting issue here is that the news of a failure to pass revolves more around a low voter turnout from the young and those who would have been for PROP 19.  The Economist recently showed a chart with damage by sins in the United Kingdom, and alcohol was shown to be far damaging in a United Kingdom study conducted by The Lancet:

JON C. OGG

Tuesday, October 05

YUM! Brands (NYSE: YUM) reports Tuesday morning.  Thomson Reuters estimates today are $0.72 EPS and $2.87 billion in revenues; next quarter estimates are $0.59 EPS and $3.48 billion in revenues.  While we’ll be watching McDonald’s on this report, the company stock often acts on its own and it has more tied to China with KFC on top of issues with same store sales trends in America.  Shares are at $46.38 and the 52-week range is $32.49 to $46.91.

Wednesday October 6

Constellation Brands (NYSE: STZ) reports Wednesday before the open and Thomson Reuters estimates today are $0.49 EPS and $855 million in revenues; next quarter estimates are $0.62 EPS and $993.55 million in revenues.  At $17.72, the 52-week range is $14.60 to $18.87.

Costco Wholesale Corporation (NASDAQ: COST) reports Wednesday morning.  Thomson Reuters estimates today are $0.95 EPS and $24.23 billion in revenues; next quarter estimates are $0.67 EPS and $18.47 billion in revenues.  At $65.00, the 52-week range is $53.41 to $65.22.  Traders will look at BJ’s on this and then at the much larger Wal-Mart after that.

Monsanto Company (NYSE: MON) is due with earnings Wednesday and Thomson Reuters estimates are -$0.06 EPS and $1.82 billion in revenues; next quarter estimates are $0.04 EPS and $1.81 billion in revenues.  AT $48.05, the 52-week trading range is $44.61 to $87.06.  Monsanto’s crop issues with corn will come front and center and the pre-earnings juice does not show much love exists.

Marriott International Inc. (NYSE: MAR) is also on deck Wednesday with Thomson Reuters estimates today are $0.22 EPS and $2.65 billion in revenues; next quarter estimates are $0.36 EPS and $3.62 billion in revenues.  Shares are at $36.13 and the 52-week trading range is $24.47 to $38.15.

Thursday, October 07

PepsiCo, Inc. (NYSE: PEP) reports Thursday morning. Thomson Reuters estimates are $1.22 EPS and $15.36 billion in revenues; next quarter estimates are $1.08 EPS and $17.77 billion in revenues.  Shares are at $66.68 and the 52-week range is $58.27 to $67.61.  Coca-Cola will be the focus stock for any secondary reaction, obviously.

Alcoa Inc. (NYSE: AA) reports on Thursday after the close and this is the first DJIA component with earnings formally scheduled.  Traders and investors may again try to tie it the earnings season trend, although as always it is up for debate as to just how the tie really works.  Thomson Reuters estimates are $0.06 EPS and $4.95 billion in revenues; next quarter estimates are $0.14 EPS and $5.30 billion in revenues.  At $12.25, the 52-week trading range is $9.81 to $17.60 and keep in mind that shares are up about 20% over the last 3 month period.

Micron Technology Inc. (NASDAQ: MU) is due Thursday after the close.  Thomson Reuters estimates for the DRAm giant are $0.40 EPS and $2.67 billion in revenues; next quarter estimates are $0.41 EPS and $2.75 billion in revenues.  At $7.27, the 52-week trading range is $6.12 to $11.40.  Micron did not recoup all of its losses at all and Q3 was a down quarter for the stock.

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

JON C. OGG

American Eagle Outfitters, Inc. (NYSE: AEO) Raised to Buy at Jefferies.
Bristol-Myers Squibb Company (NYSE: BMY) Raised to Buy at Citigroup.
China Agritech Inc. (NASDAQ: CAGC) Started as Buy at Brean Murray.
CNOOC Ltd. (NYSE: CEO) Removed from Goldman Sachs Conviction Buy List.
Constellation Brands Inc. (NYSE: STZ) Started as Buy at Citigroup.
Fortune Brands Inc. (NYSE: FO) Started as Sell at Citigroup.
Hecla Mining Co. (NYSE: HL) Started as Buy at Jefferies.
Medco Health Inc. (NYSE: MHS) Raised to Buy at Goldman Sachs.
MEMC Electronic Materials Inc. (NYSE: WFR) Cut to Sell at Hapoalim.
Sequenom Inc. (NASDAQ: SQNM) Raised to Buy at Auriga.
United States Steel Corp. (NYSE: X) Raised to Neutral from Sell at UBS.
Walgreen Co. (NYSE: WAG) Cut to Market Weight at Thomas Weisel.

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

JON C. OGG

Gabelli said that for the period ending April 30, the Focus Five outperformed the S&P 500, and is now +184.47% since inception (Jan. 31, 2006) vs. -2.18% for the S&P.

HSN Inc. (NASDAQ: HSNI) is listed as Strong Comps + Takeout… “The second-largest multichannel commerce network in the US had 2009 sales of $2.8 billion with EBITDA of $194 million. We believe multichannel retail is in the early stages of renewed secular sales growth, and that HSN’s experienced management team should be able to improve EBITDA margins substantially.Focus on the Liberty Media standstill agreement, which limits its ownership to 32% and expires in August 2010. We believe there are strategic advantages in a combination of HSNI and QVC. At ~7x 2011P EBITDA $257 million, we view shares as attractive based on current market dynamics and the potential for improved profitability and multiple expansion.”

Mead Johnson Nutrition Company (NYSE: MJN) is listed as Strong EM Growth… “The pediatric nutrition market category is expected to increase from $23 billion to over $30 billion by 2014.  MJN has leading share in the U.S. as well as many emerging markets, and currently operates in 139 cities in China.  Focus on MJN’s growth in emerging markets, most notably China, which grew by 25% in Q409.  We continue to view MJN as an attractive target for strategic acquirers who are looking to increase their exposure to fast-growing, healthy product categories.

TD AMERITRADE Holding Corporation (NASDAQ: AMTD) is listed as Financial Leverage… “As a leader in the online brokerage industry, AMTD is well positioned to participate from industry growth and consolidation. AMTD has increased client assets at a 7% annual rate, including $62 billion in net new assets.  As a holder of a large float of customer assets ($52.3 billion in spread-based balances), we believe the first 100 bps change in the Fed Funds rate could improve annual earnings by about $0.28/shr.”

TiVo Inc. (NASDAQ: TIVO) is listed as En Banc = Endgame… “We believe TIVO’s intellectual property to pause / rewind / play live TV makes them a likely takeover target to a variety of potential acquirers, including technology companies Cisco, Microsoft or Apple and distributors such as DISH or DTV.  TIVO trades at a significant discount to our 2011 PMV of $22 based on DISH and other operators entering contracts of $1.50+ per sub per month creating high margin recurring revenue.  We expect DISH’s en banc review to be rejected.”

Weatherford International Ltd. (NYSE: WFT) is listed as Performance Back on Track… “A unique global footprint positions WFT to capitalize on growing exploration and production in key markets such as Russia and Iraq.  Weatherford’s expanded product offering in the $13B directional drilling services market provides revenue growth opportunities and makes it an attractive acquisition target for a larger energy services company.  Focus on sequential quarterly earnings improvement as WFT is more levered to a recovery in international oil directed drilling activity and a restoration of institutional investor confidence following renewed quarterly guidance.  WFT trades at a compelling valuation 16.5x 2011 EPS of $1.10, 8x EBITDA, and a discount to our PMV of $22.”

Those removed from the FOCUS FIVE list are Cablevision Systems (NYSE: CVC), Coca-Cola FEMSA (NYSE: KOF), Constellation Brands (NYSE: STZ), Mastercard, Inc. (NYSE: MA) and ITT Educational Services (NYSE: ESI).

JON C. OGG

Sponsor: 26 Cheap Stocks to Sell – Cheap stocks have been on a tear recently, but nine out of ten stocks are circling the drain!

• Altria (MO) Raised to Neutral from Sell at Banc of America.
• Constellation Brands (STZ) Raised to Buy at UBS.
• Las Vegas Sands (LVS) Raised to Neutral from Sell at Banc of America.
• Live Nation (LYV) Raised to Strong Buy at S&P Equity Research.
• Regions Financial (RF) Raised to Buy at Ladenburg Thalman.
• American Express (AXP) Started as Underperform at Jefferies.
• Comerica (CMA) Cutto Hold at Deutsche Bank.
• Dell (DELL) added to Goldman Sachs Conviction Sell List.
• GT Solar (SOLR) Cut to Underperform at Jefferies.
• TIBCO Software (TIBX) Cut to Underperform at Jefferies.

Jon C. Ogg
November 13, 2008

The major U.S. companies failed to rise to a call for arms by buying up every bit it could after the Asian Contagion in 1998 as our last chance to buy those properties worldwide.  Now that The US Dollar has become the US Peso, it seems that the U.S. could see a realm of US-based companies come under acquisition fire that could ultimately change the flags of large current brands.  There are literally dozens more that could fit the bill here, but all of these companies are probably "CFIUS-free" as far as critical infrastructure or key to national security.

"Richie Rich & Retail"
Saks Inc. (NYSE: SKS) isn’t even at a $2 Billion market cap right now and may be one of the few high-end retail crown jewels that could still easily be acquired by a foreign buyer.  Despite some defenses and despite the company having paid out cash in lumps in the past, this chain is perhaps the largest luxury sales channel in the U.S. that is a pure play and with all that oil money sloshing around, it could easily make a nice trophy buy that is a money maker to boot.

"Two Huge Food Scores"
Hershey Co. (NYSE: HSY) is worth close to $9 Billion now and any deal would only come if very friendly to founding family members because of controlling voting stakes and tiered stocks.  After the Buffett-Wrigley-Mars transaction, anything is possible in the sector.  Options have been active as well, although it is possible this may be just on an "efficient" partnership or venture as well.

What about Whole Foods Markets Inc. (NASDAQ: WFMI)?  Whole Foods cannot be taken down in a hostile deal, or it would at least have trouble in that manner, but as Europeans have looked at some of our luxury brands and a market cap of almost $4 Billion it is fathomable.  This might seem counterintuitive that the largest organic or health chain could be gobbled up by a foreign entity, but it isn’t out of the realm of possibilities considering its higher margins than traditional food grocers.

"Taking the biggest bite in financials"
E*TRADE Financial Corp. (NASDAQ: ETFC) could be the cheapest score for any overseas buyer that wants to suddenly stabilize a volatile financial that has been down and out with the simultaneous goal of HSBC is buying its Indian operations and it just upped its authorized number of shares… ever wonder the the TD meant in TD Ameritrade brand? Toronto Dominion.  Are there any other cheap ways to buy 4.3 million online trading accounts without making any major dent in a large US Bank?

"Taking Our Beer & Booze Away"
Constellation Brands Inc. (NYSE: STZ) is a stock that has had its share of problems in the last 12 months, but with a market cap of under $5 Billion and the huge brans name portfolio of brand ownership or distribution in wine, beer, and spirits this could easily be put into an international portfolio.  Some individual states might throw up the foreign control flags, but the U.S. as a whole wouldn’t be able to claim the national security card.

Anheuser-Busch Companies Inc. (NYSE: BUD) is one of the current "takeover rumor" stocks with InBev as the leading candidate.  While this has a $40 Billion market cap and seems like it would be a stretch, that isn’t really Wall Street’s attitude.  Major large brand and distribution channels could be partly financed by selling off part of its distribution unit and other units.

"Telecom"
Sprint Nextel Corp. (NYSE: S) has already been a rumor target of Deutsche Telekom and others of late, and even with a $24 Billion market cap this would probably not get much government blocking because of the inherent trouble the company has let itself get into. 

Leap Wireless International Inc. (NASDAQ: LEAP) has a mere market cap of just over $4 Billion and frankly would have no infrastructure issues from the Feds.  It would be easy to imagine a Carlos Slim wanting to gobble this up or another bid from the south, particularly as many of its customers would make more and more calls south-bound.  It was once a MetroPCS merger candidate in a failed deal, but the buyer here would have to be able to instantly scale those figures up into profitability.  But Cricket and pre-paid cellular isn’t exactly CFIUS material.

"Metals Galore"
US Steel Corp. (NYSE: X) has a market cap of almost $20 Billion and Alcoa, Inc. (NYSE: AA) has a market cap north of $32 Billion, so neither are exactly small fish.  But here is the issue: the international metals and mining companies have no become so large that either company is actually considered small in the global scheme now.  Both have also been rumor targets.  Heaven help us if the metals and mining giants get to control aspects of supply, demand, and manufacturing.

"We Will Control All You See"
Lamar Advertising Co. (NASDAQ: LAMR) is a company that might make a nice trophy for China’s Focus Media or another larger ad and display company perhaps out of Europe.  This company is still held by insiders and it wouldn’t go down without a fight if it wasn’t a friendly deal, but with under a $4 Billion market cap and with it not having any critical infrastructure there wouldn’t be any issue of a foreign owner here.

If you think that these are off base, consider these and consider howmuch the world has turned.  Also consider how many brands you consumeor use daily, weekly, or monthly, or at least that millions ofAmericans use regularly.  Here are some:

• Miller Beer… part of SAB Miller (South Africa), with Altria owning a small stake.
• Coors owned by Molson of Canada.
• Jaguar and Rover… former Brit brands, punted by Ford to Tata Motors in India.
• Activision Inc. is now essentially part of Vivendi’s Blizzard games.
• GE Plastics is now part of SABIC, in Saudi Arabia.
• Paine Webber became part of UBS, which is Swiss.
• IBM’s PC unit went to Lenovo, in China.
• Gateway is now owned by Acer.
• Lucent became part of Alcatel-Lucent, which was nothing less than a French-led buyout
• 7-Eleven is now Japanese owned.
• Dr. Pepper just came back to shareholders, sort of… had been part of Cadbury Schwepps until just recently.

This may just be the post-American cycle taking effect or maybe it isthe flattening out of the world.  Whatever it ends up being, it isn’tgoing to be without controversy and without change.  As a reminder, this is probably only a very short list of companies that could have been 40 long.  Sovereign wealth funds and foreign entities could also team up with US private equity firms if any foreign ownership concerns became too large.

You can join our open email distribution list to hear about other speculation or rumor targets for mergers, IPO’s, secondary offerings, and other key special situations.

Jon C. Ogg
May 28, 2008

Jon Ogg produces and edits the SPECIAL SITUATIONS newsletter; he does not own securities in the companies he covers.