Barron’s February 17, 2007 Issue

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According to Barron’s, Alcoa (AA) could fetch $40 billion. BHP Billiton (BHP) and Rio TInto are both possible bidders.

Share in Sotheby’s (BID) are still hot. The number of people with large fortunes is growing increasing the pool of worldwide collectors.

Webex (WEBX) may still have room to run. The company believes that web collaboration is the "killer app" over the internet.

When companies end giving guidance, investors’ worries often increases and share prices can go down according to several studies.

Timken (TKR), the ball bearing maker, is restructuring. Investors may want to see the fruits of the plan. The sotck, at $29, may go to the mid-$30s, but its could drop first as investor "wait and see".

Electronic (ERTS) could benefit tremendously for new game platforms and cellphone games. Its earnings could more than triple of the next two years as Sony’s (SNE) PS3 sales grow along with Microsoft (MSFT) Xbox and Nintendo Wii. Some analysts think shares could jump from $51 to $65 over the next year.

Shareholder advocate helped push out the CEO of Home Depot (HD). His firm, Relational, has $6 billion of assets. His next targer appears to be Ceridian (CEN). His firm also has investments in Soverign Bank (SOV) ConAgra Foods (CAG), National Semi (NSM), Prudential Finacial (PRU) and Baxter International (BAX).

Brown Forman (BF/B) has turned Jack Daniel’s into a major global brand. Some analysts think this could push the stock from its current $65 to $80.

Generic competition may be getting closer for Amgen (AMGN) and Genentech (DNA) as Congress and several large companies try to know down healthcare cost. Some of the companies backing an effort to lower these costs are General Motors (GM), Teva (TEVA) and Aetna.

Digital TV is finally beginning to see the light of day. And, video advertising could become the fastest growing ad segment on the internet. This could help online portals like Google (GOOG) and Yahoo! (YHOO) but also other online sites like car destination Autobytel (ABTL), gay portal PlanetOut (LGBT) and certain ad agencies like aQuantive (AQNT).

Univision (UVN) LBO will give the broadcaster $10 billion in debt. That could be very bad news for shareholders.

Principal Financial (PFG) may have a lot of upside as it moves from insurance into funds and retirement services.

Douglas A. McIntyre