Late afternoon yesterday, federal judge Paul Friedman rejected the Federal Trade Commission's request to block Whole Foods Market Inc.'s (NASDAQ: WFMI) proposed acquisition of Wild Oats Markets Inc. (NASDAQ: OATS).

The FTC had argued that the half-billion dollar deal would stifle competition in the already niche organic foods sector, but Whole Foods countered that their true competition is now general supermarkets which have increased their organic products offerings.

Chairman and CEO of Whole Foods John Mackey said in a statement, "The District Court's ruling affirms our belief that a merger between Whole Foods and Wild Oats is a winning scenario for all stakeholders. We believe the synergies gained from this combination will create long-term value for customers, vendors and shareholders as well as exciting opportunities for team members."

The FTC can still try to block the deal by seeking a stay from the U.S. Court of Appeals for the District of Columbia Circuit or the district court, though all FTC Competition Director Jeffrey Schmidt would say is "we are reviewing our options."

In the meantime, Wild Oats shares are up nearly 18% to $17.90 and Whole Foods shares are up almost 5% to $43.22.

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Lehman Brothers (NYSE:LEH) has been a strong performer this year, moving up over 28 percent off of its lows, but the company is still struggling to join the likes of Morgan Stanley and Goldman Sachs as an elite investment bank. While most investors still think of Lehman Brothers as a bond house with potentially damaging exposure to mortgages, some are now beginning to see the firm in a new light.

What makes Lehman Brothers an attractive stock? Well, the firm's efforts to restructure itself have produced tangible results while its stock price has moved up relatively little. Specifically, the firm has made great progress in its move to diversify from fixed income into stocks and bonds both in the U.S. and broad. And the stock remains extremely undervalued - in fact, LEH trades at one of the lowest price-to-earnings multiples of any brokerage. And management knows the firm is undervalued. Mr. Fuld said, "Whether the world catches on today or tomorrow, I've got plenty of time for that. I like that we're not fully appreciated."

Lehman Brothers also has far less risk than other brokers who have used cheap credit to force otherwise unprofitable deals through their pipeline. While the firm is working on restructuring their balance sheet to take on more trading and deal risk, they still intend on making much safer bets than the competition. The firm also makes more money overseas than every other investment bank besides Goldman Sachs. These factors make LEH a safe bet in the event of a downturn in the economy that would materially hurt other firms' earnings.

In the end, Lehman Brothers is a company that is working to convert itself from a fixed-income firm to an elite investment bank like Goldman Sachs or Morgan Stanley. If it is successful, it could mean significant share appreciation from these levels. And the reduced amount of risk they are taking on makes them a safer bet than other investment banks in the event of a downturn in the economy. This makes LEH a stock worth watching!

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Bristol-Myers Squibb (NYSE:BMY) set a new 52-week high this week after a federal judge upheld a patent on Plavix - the company's best selling drug with over $938 million in first quarter sales. Many traders positioned themselves for further upside with more than 244,000 call options (mostly out of the money) trading hands yesterday on a base stock move of over four percent. The move indicates the increasing number of BMY bulls in the short term.

The drug company was also lifted by speculation that it could become the subject of a takeover by larger drug companies like Sanofi-Aventis. Now that the legal issues surrounding Bristol-Myers' #1 selling drug is cleared up, many investors believe the likelihood of such a deal has increased. Analysts peg the value of any deal in the mid to high 30s per share; however, wide-reaching partnerships with many companies in the industry may cause complications.

So, is this a stock worth buying? Well, clearly many investors and analysts are very bullish on the company while a giant legal cloud over its best drug has been lifted. Moreover, there is speculation that the company could receive buyout bids in the future. The company also has strong earnings and cash flows that have led to a strong bull trend in the stock price for more than a year. Combined, these factors have led to many trend followers along with opportunistic investors to jump onboard. Whether or not there is significant upside from here remains to be seen; however, we know that the options activity and past trends are all pointing up!

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Sprint Nextel (NYSE:S) is exploring plans to finance its venture into wireless broadband. The $3 billion WiMax iniative would be a direct competitor to 3G services and has caused concerns among some investors, including Relational Investor's Ralph Whitworth. The activist investor questioned whether or not management's WiMax strategy was worth the extensive upfront costs.

Management's response to these concerns during a recent Bear Stearns conference came in the form of a proposed spin-off of the WiMax unit. Sprint executive suggested that they could spin-off the unit as part of a deal with Mr. McCaw's Clearwire Corporation - a company that is quickly growing in the same niche but not yet profitable. Many investors would favor this deal because it would both remove a potential WiMax competitor and rid Sprint of a potentially risky business.

Other plans to finance the WiMax unit include the involvement of outside financiers to fund the project, including cable companies. After all, Sprint is already involved in a wireless joint venture called Pivot with three other major cable operators. Moreover, Time Warner has reportedly already been in talks with the company regarding the future of WiMax. Other plans include a more standard deal with Clearwire where Sprint may lease technology in an effort to quickly expand its nationwide footprint at relatively low cost.

So, what does this all mean for investors? Well, Sprint executives are finding themselves in a difficult position. They are forced to increase capital spending significantly if they wish to keep WiMax in house, yet they are reluctant to competely separate the company because it could give Sprint an edge over competitors in the future. And with the company already facing criticism over its sluggish cell phone business, this edge could be just what it needs. Unfortunately, the closest comparison we have to estimate the unit's success is Clearwire, whose stock has dropped over 20% since its IPO. Whether or not the strategy pays off remains to be seen, but this is definitely a story to follow in the meantime!

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Ryerson (NYSE:RYI) may finally be forced to face the music today after 9.6% holder Harbinger Capital Management announced that they would be suing the company for failing to hold its annual meeting. The activist hedge fund had recently announced its own slate of directors when the company suddenly cancelled their annual meeting to "review strategic alternatives". Many shareholders are hoping that they can finally rid the company of poor management and unlock shareholder value.

This fight between Ryerson management and shareholders is nothing new. Harbinger and other investors have been unhappy with Ryerson's performance for some time and have been trying to change management or perhaps find a private equity buyer willing to pay a premium for the company. Ryerson management - realizing that they were in danger - have delayed their annual meeting as long as possible while searching for a buyer that would keep the current management in tact. This has proven to be quite the challenge, however, as the company has not yet found a buyer agreeing to such terms!

Now, Harbinger is trying to finally force a day of reckoning for management. Deleware law states that companies must hold their annual meeting no later than 13 months after their last. While there are few exceptions, Harbinger announced today that it is suing in hopes that they can force an annual meeting within the next 45 days. The company's Chief Financial Officer said that they are aware of the lawsuit and are consulting with their lawyers. Whether or not we will finally see an annual meeting remains to be seen, but this is definitely a situation to keep an eye on in the meantime!

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