We have outlined the news and the moves for each and added in color if appropriate.

Diana Containerships Inc. (NASDAQ: DCIX) is down by almost 7% at $7.40 in very active trading of more than 800,000 pre-market shares.  The company priced its 14.25 million share secondary offering at $7.50 per share. UPDATE 4PM CLOSE: -10.06% at $7.15.

Gladstone Commercial Corporation (NASDAQ: GOOD) was down almost 5% in the after-hours around $17.60, but now shares are down 5.3% at $17.47 in thin volume.  The company plans to sell 1 million shares of common stock in a public secondary offering. UPDATE 4PM CLOSE: -5.26% at $17.48.

Harbin Electric, Inc. (NASDAQ: HRBN) is rising on news that it has said it has reaffirmed a going-private proposal at $24.00 per share and receipt of financing with the China Development Bank.  Shares are indicated up 9.4% at $16.94. UPDATE 4PM CLOSE: +5.1% at $16.27.

Lululemon Athletica Inc. (NASDAQ: LULU) is trading up nearly 6% at $91.20 in active pre-market levels. Besides a prior split, Lululemon beat earnings, guided higher for Q2, and raised its fiscal-2012 guidance.  No downward dog here. As a reminder, the 52-week trading range is $31.08 to 102.83. UPDATE 4PM CLOSE: +4.4% at $89.94 after a $93.24 high for the day.

Molycorp, Inc. (NYSE: MCP) was actually trading higher after getting shelled with pain this week.  The 10 million shares being sold went off at $51.00 per share last night.  Shares closed yesterday at $51.29 versus $58.70 before the offering was announced Tuesday evening.  This stock is actually trading higher and shares are up 1.1% at $51.87 in very active trading early on. UPDATE 4PM CLOSE: +0.4% at $51.49, high of $52.96 on Friday.

Rentrak Corporation (NASDAQ: RENT) was down 7% on thin trading last night after falling short of revenue and earnings estimates.  This one rallied big on Wednesday the day before earnings.  No real volume has been seen as of yet. UPDATE 4PM CLOSE: -12.4% at $19.65 on 202,000 shares (4.5-times normal volume).

Taseko Mines Ltd. (NYSE: TGB) was indicated lower after reporting soft earnings on lower output in copper-molybdenum.  Earnings were soft and revenues were down.  This one is down 7.6% at $4.60 and its 52-week trading range is $3.31 to $7.23. UPDATE 4PM CLOSE: -7.2% at $4.62.

RealD Inc. (NYSE: RLD) was down by about 7% around $22.30 in the after-hours and things are now worse as the drop is -10.7% at $21.50.  This appeared to be an earnings report and revenue report ahead of expectations, but the concentration of revenues being about 90% or so from just two 3D films. UPDATE 4PM CLOSE: -13.17% at $20.90 on about 8-times normal volume of 6.8 million shares.

Verigy, Ltd. (NASDAQ: VRGY) is the major volume leader of the day with shares up over 10% at $14.94 on more than 15 million shares.  Its 52-week range is $7.48 to $15.09. The DOJ has apparently cleared Verigy’s merger. UPDATE 4PM CLOSE: +10.9% at $14.96 on over 43 million shares.

Yongye International, Inc. (NASDAQ: YONG) rose on its report that Morgan Stanley Private Equity Asia closed on its previously announced $50 million equity investment. It looks like the compounds company for plant and animal feed is trying to show that it is a real China company rather than one of the accounting-risk companies.  This morning we have shares trading up 7.7% at $4.58 versus a 52-week range of $3.01 to $9.49. UPDATE 4PM CLOSE: +9.88% at $4.67.

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JON C. OGG

Verigy Limited (NASDAQ: VRGY) is up 11% premarket to $14.10, relative to a 52-week range of $7.48-$15.09. The company’s board of directors recently determined that a buyout offer from Advantest corporation (NYSE: ATE) was preferable to another deal offered by LTX-Credence.

Vodaphone Group Plc. (NADAQ: VOD) is up 4.6% premarket to $28.97, relative to a 52-week range of $18.21-$32.70.

Xenoport, Inc. (NASDAQ: XNPT) is down nearly 13% premarket to $5.82, relative to a 52-week range of $5.86-$11.82. The company will stop experimental treatment of a heartburn medication.

Amazon.com Inc. (NASDAQ: AMZN) Reiterated Buy and $190 price target at BofA/ML (late-Monday call).
General Motors Corp. (NYSE: GM) Started as Outperform at Credit Suisse; Started as Buy at Citi; Started as Overweight at Morgan Stanley.
HiSoft Technology International Ltd. (NASDAQ: HSFT) Started as Outperform at BMO.
LPL Investment Holdings Inc. (NASDAQ: LPLA) Started as Overweight at Morgan Stanley; Started as Buy at Goldman Sachs.
McDonald’s Corporation (NYSE: MCD) Reiterated Buy with $88 target at Argus.
Petroleo Brasileiro (NYSE: PBR) Reiterated Buy with $55 target at BofA/ML.
Verigy, Ltd. (NASDAQ: VRGY) Reiterated Outperform and $15 target at Credit Suisse.

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JON C. OGG

The prior deal was listed as $12.00.  Where this gets interesting is that Verigy said that its board of directors IS NOT MAKING A DECISION on the revised Advantest proposal at this time, and it anticipates continuing to engage in discussions with Advantest.

It further noted, “There can be no assurances that any transaction will result from the revised Advantest proposal or Verigy’s discussions with Advantest.”

As of now, Verigy continues to recommend and support the LTX-Credence merger agreement to its shareholders.  It is also not withdrawing its recommendation to Verigy shareholders.

Verigy shares are now up 8% at $13.65 in very active trading.  LTX-Credence shares are down another 5.4% at $7.37 and Advantest shares are up 0.5% at $22.49.

If Advantest really truly wants Verigy, maybe it should consider taking on LTX-Credence as well.

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JON C. OGG

Allied Irish Banks plc (NYSE: AIB) looks like it is being effectively nationalized.  Shares are down 20% at $0.87 on 1.5 million shares.

ARM Holdings plc (NASDAQ: ARMH) is lower after big gains of the rumors O/S win.  Shares are down 3.2% at $19.78 ahead of a long weekend.

Bed Bath & Beyond, Inc. (NASDAQ: BBBY) is up almost 6% at $50.49 at a new high above the prior $48.96 after it beat earnings, raised guidance, and announced a $2 billion share buyback plan.

Jo-Ann Stores, Inc. (NYSE: JAS) is surging on news that it will be acquired by Leonard Green & Partners, L.P. for $61.00 per share in cash; shares are up 33% at $60.81 on over 300,000 shares.

LM Ericsson Telephone Co. (NASDAQ: ERIC) is lower after Goldman Sachs downgraded the stock.  Shares are indicated down only about 1.2% at $11.27 on 150,000 shares. It could have been worse…

Micron Technology Inc. (NASDAQ: MU) is lower after earnings were deemed short of estimates and as the company talked about soft PC demand and memory pricing pressures.  Shares are down 2.8% at $8.05 on almost 700,000 shares.

Sequenom Inc. (NASDAQ: SQNM) is trading higher on news that “Sequenom CMM has commenced its pivotal clinical validation study for its SensiGene Trisomy 21 laboratory developed test.”  Shares wer eup over 5% earlier but the stock is up 3.35% at $7.98 on over 50,000 share spre-market.

Verigy, Ltd. (NASDAQ: VRGY) is trading higher on a sweetened takeover offer to $15 per share; shares are up 8% at $13.65 on almost 4 million shares so far in the pre-market.

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JON C. OGG

Verigy noted in a response that it believes the Advantest proposal might lead to a superior transaction.  That belief has led the company to engage in discussions with Advantest.

While there are of course no assurances, this is how bidding wars commence.  If there are two parties interested it also lends hope that a third party could surface as well.  It was just on November 18, 2010 that Verigy announced its LTX-Credence merger.  Under that merger, Verigy would own roughly 56% of the new entity and LTX-Credence shareholders would own about 44% of the combined company.

The official statement cited, “The Verigy Board continues to believe in the compelling strategic and financial merits of its proposed transaction with LTX-Credence, and continues to recommend the LTX-Credence transaction to its shareholders. The Verigy Board is not withdrawing its recommendation with respect to the LTX-Credence transaction, or proposing to do so, and is not making any recommendation with respect to the Advantest proposal.”

Being opportunistic is not out of the norm.  Morgan Stanley is acting as financial advisor to Verigy. Wilson Sonsini Goodrich & Rosati is acting as Verigy’s U.S. legal counsel and Allen & Gledhill is acting as Verigy’s Singapore counsel.

At issue is what Verigy does and its future growth being assured.  While it is in semiconductor testing solutions, the company is targeted in design validation, characterization, and high-volume manufacturing testing geared toward system-on-chip test solutions, as well as memory test solutions for Flash memory, DRAM and high speed memory, and multi-chip packages.

For whatever it is worth, Verigy shares traded above $20 as recently as mid-2008.  It is also worth noting that the $12.15 offer is still south of where this traded when it came public in 2006 and that the stock reached above $25.00 in 2007.  The problem is that revenues fell severely in the recession and Verigy’s revenues went from $761 million in 2007 to $691 million in 2008 and $323 million in 2009.  The report from November showed that the October year-end for 2010 was $539 million in revenues.  Thomson Reuters has estimates of $608.81 million for 2011 and $688.13 million for 2012.

After a 35% pop to $12.39, Verigy, Ltd. (NASDAQ: VRGY) now has a market cap of $743.5 million.  LTX-Credence Corporation (NASDAQ: LTXC) is down 11.5% on the news and its current market cap is now $368 million.  Advantest Corp. (NYSE: ATE) is down only 1.5% at $21.38 and its current market cap is $3.7 billion.

A higher bid is not assured here.  Not by a long shot.  Still, it is easy to see how many want more and expect more.

JON C. OGG

CNinsure Inc. (NASDAQ: CISG) makes our list for the second straight trading day. Shares are down 3.6% to $16.18 after JP Morgan downgraded the company from overweight to neutral. CISG is trading in a 52-week range of $15.33-$28.62.

Verigy Ltd. (NASDAQ: VRGY) is up more tham 35% on heavy volume after an unsolicited purchase offer from Advantest. Shares of VRGY are at $12.23, relative to a 52-week range of $7.48-$13.75.

Nova Measuring Instruments Ltd. (NASDAQ: NVMI) is up 5% on light volume to $8.06 compared to a range of $3.63-$7.70.

LTX-Credence Corporation (NASDAQ: LTXC) is down nearly 7% to $7.89, relative to a 52-week range of $4.02-$11.34.

Radware Ltd. (NASDAQ: RDWR) is up 15% on heavy volume to $37.80, relative to a 52-week range of $13.05-$14.07.

Central European Distribution Corp. (NASDAQ: CEDC) Started as Buy at Citigroup.
ExxonMobil Corp. (NYSE: XOM) Cut to Sector Perform and $70 target at RBC (third cut in two days).
Gordmans Stores, Inc. (NASDAQ: GMAN) Started as Outperform at Baird; Started as Buy at Stifel Nicolaus; Started as Outperform at Wells Fargo.
Kulicke & Soffa Industries inc. (NASDAQ: KLIC) Cut to Underperform at Oppenheimer.
Research In Motion Limited (NASDAQ: RIMM) Cut target to $90 at TD.
Sanmina-SCI Corp. (NASDAQ: SANM) Reiterated Buy at Needham.
Skilled Healthcare Group, Inc. (NYSE: SKH) Cut to Hold at Jefferies.
Teradyne Inc. (NYSE: TER) Cut to Perform at Oppenheimer.
Varian Semiconductor Equipment Associates Inc. (NASDAQ: VSEA) Started as Overweight at JPMorgan.
Verigy, Ltd. (NASDAQ: VRGY) Cut to Underperform at Oppenheimer.

Eds Update

• Allegheny Tech (ATI) Cut to Hold at Deutsche Bank.
• Baidu.com (BIDU) Target Cut to $260 from $350 at Goldman Sachs.
• Discovery Communications (DISCA) Cut to Underweight at JPMorgan.
• First Horizon National (FHN) Cut to Neutral at Goldman Sachs.
• Janus Capital (JNS) Cut to Underperform at FBR.
• National Oilwell Varco (NOV) Cut to Neutral at JPMorgan.
• Phoenix Tech (PTEC) Cut to Buy from Strong Buy at Needham.
• Radio Shack (RSH) Cut to Neutral at Goldman Sachs.
• Sigma Designs (SIGM) Cut to Hold at Deutsche Bank.
• Verigy (VRGY) Cut to Underperform at Oppenheimer.

Jon C. Ogg
October 24, 2008

• Ann Taylor (ANN) Raised to Hold from Sell at Citigroup.
• China Sunergy (CSUN) Raised to Buy at Jefferies.
• Verigy (VRGY) Raised to Hold at S&P.
• Cablevision (CVC) Cut to Sell at Citigroup.
• Knight Transportation (KNX) Cut to Market Perform at Wachovia.
• Oshkosh (OSK) Cut to Sell at S&P.
• Werner Enterprises (WERN) Cut to Market Perform at Wachovia.

Jon C. Ogg
August 25, 2008