NYMEX Holdings (NDAQ:NMX)
S-1 Filing by the Company
NYMEX Holdings - parent company of the New York Merchantile Exchange - revealed today in an ammended S-1 filing with the SEC that they see an IPO price of $48 - $52 per share. With the recent M&A activity surrounding exchange companies, NYMEX (the world's third largest future's brokerage) is likely to see significant upside after it IPOs.

Time Warner Cable (NYSE:TWC)
S-1 Filing by the Company
Time Warner Cable - a subsidiary of Time Warner - revealed today in an S-1 filing with the SEC that it planned to IPO. Many investors maintain that cable companies are among the best cash flow generators in the market today; however, there are very few pure plays. With the TWC IPO, there will not only be a pure play, but also a boost for TWX, who owns over 8% of class A shares and all of the class B shares.

Abbott Laboratories (NYSE:ABT) reported in an 8K filing with the SEC that their Q3 results are inline with estimates while guiding within analyst estimates. The company also announced a $2.5 billion share buyback program. According to the press release, "The purchases may be made from time to time as market conditions warrant and subject to regulatory considerations. The timing and amounts of any purchases will be determined by the company's management. The share repurchase authorization has no time limit and may be discontinued at any time." This news comes as the company's stock is struggling to make progress beyond its $40-50 range that it has been locked into since mid-2003. The buyback would represent 3.4% of the company's current market cap.

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First Mercury Financial Corporation (NYSE:FMR) opened for trading today on the NYSE at $17.00 per share - in the middle of its $16 - $18 range. The stock is currently trading at $19.30 in intraday trading today, moving up 13%.

FMR markets and underwrites specialty commercial insurance products, focusing on niche and underserved segments where the company has underwriting expertise and other competitive advantages. More specifically, the company focuses on underwriting insurance in the security industry, which includes security guards and detectives, alarm installation and service businesses, and safety equipment installation and service businesses, which they have done for over 33 years. Although this gives the company a great edge in this industry, the lack of revenue diversification does increase the risk of investment. However, unlike most companies, First Mercury filed 10Q statements dating back to 1996 before its IPO, giving investors a good look into its business. These documents show a company that has a strong balance sheet and a business that continues to grow in a great niche. This is definitely a stock to keep an eye on for possible investment after the IPO dust settles and a fair valuation can be calculated.

Marvell Technology Group Ltd. (NDAQ:MRVL)
8K Filing by the Company
Marvell Technology announced today in an 8K filing with the SEC that the company was meeting with leaders at Intel today to further discuss their acquisition of Intel's communications and application processor business for $600 million plus the assumption by Marvell of certain liabilities.

SAC Capital
13G Filings (CY and PPCO)
SAC Capital revealed in two 13G filings today that it has raised its stake in Cypress Semiconductor Corporation (NYSE:CY) to 5.4% and Penwest Pharmaceuticals Co. (NDAQ:PPCO) to 6.2%. CY and PPCO are both undervalued companies that may be of interest for value investors, especially with this fund purchasing.

Yahoo Inc. (NDAQ:YHOO)
8K Filing by the Company
Yahoo announced Q3 EPS of $0.11, which was in-line with estimates. The company also revealed a $3 billion share buyback program over the next five years. The company's share price has been falling recently after failing to effectively compete with Google in the online advertising market. Moreover, the acquisition of YouTube only puts Yahoo further behind in the eyes of many investors.

Glenn H. Nussdorf revealed today in a 13D/A filing that he intends to explore the possibility of acquiring Parlux Fragrances Inc. (NDAQ:PARL) through a business combination. Shares of PARL moved up over 12% on the news to settle at $7.14. According to the filing:

"Mr. Nussdorf has begun to explore the possibility of making an acquisition proposal to acquire the Company in a business combination transaction. As part of such exploration, Mr. Nussdorf and/or his representatives have had preliminary discussions with the Company's management and have had preliminary discussions with potential financing sources to obtain the funds necessary for such a transaction. Mr. Nussdorf has made no decision at this time as to whether to pursue an acquisition proposal and no assurances can be given as to whether or not Mr. Nussdorf will submit such a proposal to the Company. In addition, if Mr. Nussdorf submits such a proposal, there can be no assurances as to whether it would be acceptable to the Company or whether any such proposal would result in a definitive agreement being executed." (Read More)

We first brought up the possibility of this buyout back in July, when Nussdorf first acquired 5% of the company and sought permission to purchase an additional 15%. Now, just about a month later, Nussdorf owns approximately 10.6% of the company and is still buying. It is likely that Nussdorf will use E Com Ventures, Inc. (NDAQ:ECMV) as a vehicle to purchase Parlux, as it is one of Parlux's largest customers. PARL remains undervalued and any buyout would likely come at a premium to the current price, so this is a stock that is definitely worth keeping an eye on as the situation progresses.

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Lear Corporation (NYSE:LEA) disclosed in an 8-K filing with the SEC today that billionaire investor Carl Icahn had purchased $200 million worth of shares in a private placement deal with the company. The deal comes as the company has been facing problems executing its restructing plans in an effort to improve their fundamentals. Investors applauded the help, as the stock rose nearly 15% in intaday trading.

According to the filing:

"On October 17, 2006, Lear Corporation ('Lear') entered into a Stock Purchase Agreement (the 'Purchase Agreement') with Icahn Partners LP, Icahn Partners Master Fund LP and Koala Holding LLC (collectively, the 'Icahn Stockholders') pursuant to which Lear agreed to issue and sell to the Icahn Stockholders 8,695,653 shares of Lear’s common stock (the 'Common Stock') at a price per share of $23.00, for an aggregate purchase price of approximately $200,000,000 (the 'Offering'). Certain of the Icahn Stockholders are current stockholders of Lear."

Carl Icahn is well known for his activist approach to enforcing change within companies - most recently ImClone Systems (IMCL). Although investors clearly welcome his help, analysts remain divided with some calling this an opportunity to "aggressively" sell any open positions. Lear's stock is down from over $60 per share in 2004 to its current levels around $25 per share. Although undervalued as an asset play, the company is strugging with declining margins and a weak backlog. If Icahn can help the company successfully execute its restructuring, it could add a lot of value to this stock. It is definitely one worth watching.

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Stock exchanges moved higher today on news that Chicago Merchantile Exchange Holdings (NYSE:CME) was buying CBOT Holdings, Inc. (NYSE:BOT) in a bid to create a combined $25 billion global derivatives exchange. This acquisition follows the bidding war between NASDAQ and the NYSE for the London Stock Exchange, which eventually failed after the LSE rejected the bids in favor of a buyout by Ameriprise Financial. With the possibility of more consolidation in the air, many stock exchange stocks rose today:

InterContinental Exchange, Inc. (NYSE:ICE)
International Securities Exchange Holdings Inc. (NYSE:ISE)
NYSE Group, Inc. (NYSE:NYX)
NASDAQ Stock Market, Inc. (NDAQ:NDAQ)

Health Net, Inc. (NYSE:HNT)
8-K Filing by the Company
Health Net announced today that it would resume its share buyback program, which authorizes it to repurchase approximately $450 million worth of stock. The stock is currently trading down, however, after the company revised its quarterly estimates $0.03 below consensus and announced that its VP and CFO would resign effective November 10th.

Napster, Inc. (NDAQ:NAPS)
SEC Filing Watch
Napster moved higher today on renewed takeover rumors following comments made by ThinkEquity analyst Darren Aftahi, who commented that he didn't think there would be any slowdown in M&A activity in the digital media sector. He also commented that he believed NAPS was worth $5 - $7 in the event of a buyout. Napster is currently trading at $4.41, trading up 2.56% on the news today.

Nabi Biopharmaceuticals (NDAQ:NABI) may find itself in trouble after Third Point has apparently become fed up with management, stating in a 13D/A filing: "We have repeatedly warned this Board that we (and, we are confident, other shareholders) will not tolerate a "burning the furniture to heat the house" policy with respect to asset sales and spending, which is precisely the policy your October 12 conference call and this morning's letter appear to adopt ... We have now determined to pursue a consent solicitation to remove not only McLain but, as well, a majority of the Company's directors from the Board".

In the letter, Third Point makes several arguments supporting its elevated valuation of the company and plan to maximize shareholder value:

"As you are probably aware, on October 12th Nabi Biopharmaceuticals (the "Company") held a conference call following the announcement of the sale of PhosLo to Fresenius. In that call, Tom McLain articulated a plan which, when stripped down to its essence, would use the sale proceeds to fund $30 million per annum of cash burn in 2007 and 2008. Thus, the Company has proven our thesis that it contains valuable and coveted assets. The net present value of the PhosLo sale, which was exactly in line with our estimates, confirms our view that Nabi's assets are worth roughly twice as much as where the stock currently trades.

We have repeatedly warned this Board that we (and, we are confident, other shareholders) will not tolerate a "burning the furniture to heat the house" policy with respect to asset sales and spending, which is precisely the policy your October 12 conference call and this morning's letter appear to adopt. Indeed, there is no conceivable reason why Nabi should be in a cash burn position once the PhosLo disposition has been consummated and the major development projects sold or partnered. In fact, if the Company were to become an efficiently-run ongoing entity after such a restructuring, it should be earnings and cash-flow positive by mid-2007."

With many investors furious at management for bringing the company down from over $15 per share in 2004 down to around $5 per share now. Meanwhile the company's margins continue to decline while cash burn only increases. Third Point offers a way out for investors, and it appears that they are interested, as shares have moved up over 2% today on the news.

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InFocus Corporation (NDAQ:INFS) found itself in hot water on Friday when activist hedge fund Caxton Associates revealed their displeasure with management in a 13D filing made after market close on Friday. The stock has trended down from over $10 in 2004 to its current level around $2.60 per share.

In the filing, they noted:

"The Reporting Persons believe that the intrinsic value of the Company, and the amount a strategic or financial buyer would pay to acquire the Company, is significantly greater than the current market value of the Common Stock.  The Reporting Persons believe that this gap in value has resulted from the implementation by the Company's Board of Directors (the "Board") of a flawed business plan that has been detrimental to shareholder value. The Reporting Persons accordingly believe that the following steps should be taken promptly in order to preserve and maximize shareholder value:

1. The Reporting Persons believe that the Company's poor performance is the result of mistakes made by management and the Board's failure to grasp the strategic realities of the environment in which the Company operates.  At this time, we believe that the Company's operating management is capable of effectively executing the Board's strategic vision should it be given adequate guidance and oversight.  We do not, however, believe that the Board, as currently constituted, is providing the necessary strategic thinking.  Therefore, we believe that, unless significant changes are made promptly, changes in the Board are in the best interests of all shareholders.

2. The Board should include individuals with strong ties to large shareholders, as well as industry, legal and/or financial markets expertise, which have a firm grasp of the realities of the markets in which the Company operates.  Unless significant changes are made, the Board should be restructured to consist of Mr. Ranson, at least two individuals drawn from among the Company's largest shareholders, and other independent directors with relevant industry backgrounds.

3. As part of the Company's announced exploration of strategic alternatives, the Board should develop an operating strategy that not only protects and enhances the hard asset value of the Company, but also will allow the Company to be cash flow positive under any foreseeable circumstances.  The Board should immediately work with management to develop a business plan that, among other things, permits revenue growth only at a reasonable cost, fixes or exits money-losing operations, and leverages the Company's valuable brand name franchise and considerable intellectual property assets.  This new business plan should be assessed against other available alternatives, including the possibilities of a sale or restructuring of the Company.

The Reporting Persons continue to examine all of their options with respect to the possibility of taking actions that they believe will enhance shareholder value, including the option of actively seeking to replace members of the Board."

Caxton Associates is well known for enforcing their will upon incompotent management, going so far as to use proxy battles to overtake the Board. And with a 9% stake in the company, Caxton has good reason to make sure these changes happen quickly! Fundamentally, the company has terrible margins as a result of poor management but a substancial amount of cash ($1.70 per share). While the actual course of action pursued by Caxton and the company remains to be seen, this is definitely a stock to keep an eye on! The stock is trading up nearly 2% today on the news.

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