ExlService Holdings, Inc. (NDAQ:EXLS)
S-1 Filing by the Company
ExlService IPO'd today at $13.50 per share, above its expected range of $10 to $12 per share. The stock moved up to $17.13 after its debut, up nearly 27%. ExlService Holdings, Inc. is a recognized provider of end-to-end offshore services, including Business Process Outsourcing (BPO), research and analytics, and risk advisory services. It primarily serves the needs of Global 1000 companies in the banking, financial services and insurance sector.

Granite Construction Incorporated (NYSE:GVA)
Press Release
Granite Construction issued a statement today in response to rumors that the company is a potential takeover target. According to the company "they are not aware of any developments that would substantiate a rumor contained in a news article issued yesterday that speculates of a possible takeover of Granite Construction."

Optimal Group, Inc. (NDAQ:OPMR)
13D/A Filing by Clinton Group
Optimal Group received a letter from the Clinton Group today, via a 13D filing with the SEC, urging them to return a portion of their large cash position to shareholders through a special dividend or share buyback. Moreover, the letter demanded that the company immediately attempt to put itself up for sale. If any of these actions materialize, it could mean significant returns for shareholders in the short term.

Google Inc. (NDAQ:GOOG) reported in an 8K filing after-hours yesterday that they topped earnings estimates by $0.20, coming in at $2.62. The company impressed analysts with a net income that nearly doubled to $733.4 million while they reported that their foreign market share rose from 39% to 44%. These results suprised analysts as the stock traded up over 6% at open today.

The primary concern that investors had going into the quarter was the fact that Google was spending too much money without showing significant improvements in their bottom line. The numbers released yesterday relieved these concerns as well as some copyright infringement concerns that investors had concerning the acquisition of YouTube. The company noted that federal legislation protected the company so long as it made "good faith" efforts to remove material that infringed on intellectual property rights. All together, this release boded well for the company, as many investors are expecting Google to hit $500 before heading lower.

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Texas Industries, Inc. (NYSE:TXI) may be targetted by Nassef Sawiris/NNS Holding, who disclosed a 2.3% stake in the company today via a 13D filing with the SEC. Mr. Sawiris also disclosed a series of derivative holdings, which (if exercised) would give him a 9.1% stake in the company. In the 13D filing, Nassef opened up the possibility for a sale of the company:

"The Reporting Persons purchased the Securities based on the Reporting Persons’ belief that the Issuer’s common stock at current market prices is undervalued and represents an attractive investment opportunity. However, Mr. Sawiris has had communications with the Issuer and it is anticipated that Mr. Sawiris may, from time to time, have discussions with management, the board of directors and other shareholders of the Issuer.

Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of shares of the Issuer’s common stock at prices that would make the purchase of additional shares desirable, the Reporting Persons may endeavor to increase their position in the Issuer through, among other things, the purchase of shares of the Issuer’s common stock or options on such shares on the open market or in private transactions, through a tender offer or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

The Reporting Persons intend to actively monitor efforts by management to increase stockholder value. The Reporting Persons may also decide in the future to propose a transaction whereby all or a portion of the Issuer be sold, and in connection therewith the Reporting Persons may seek to participate in such transaction or seek to acquire control of the Issuer in a negotiated transaction or otherwise. If it should acquire control of the Issuer, it may transfer all or part of it to affiliated or unaffiliated persons. The Reporting Persons also may seek in the future to have one or more representatives elected to the board of directors or to propose other matters for consideration and approval by the Issuer’s stockholders or board of directors." (Read More)

It is worth noting that Mr. Sawiris is involved in the heavy materials business himself, which enhances the odds of a potential sale of the company. And although Texas Industries isn't particularly cheap at these levels, it does have a nice piece of the heavy materials market share in the southern United States. This is definitely a stock to watch as this situation unfolds, as any sale of the company would command a premium to the current market price. The stock is currently up over 3% on the news.

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Cypress Semiconductor (NYSE:CY) reported Q3 earnings of $0.16/share, beating estimates by $0.02. The company also announced that it would terminate its plan to explore the possibility of a sale. The president and CEO of the company said:

"Cypress's third-quarter revenue of $290.2 million was up for the sixth consecutive quarter, reaching its highest point since the fourth quarter of 2000, the Company's all-time revenue record quarter. Net income also increased for the sixth straight quarter. Our gross margins were affected by manufacturing limitations which we expect to improve going forward."

The stock moved down almost 10% in early trading today on the news that the company would no longer be exploring a buyout. Right now, the company is overvalued in terms of its PE/G; however, it does have a sizable cash position that could be used to improve operations or returned to shareholders through dividends or share buybacks. This news also comes after SAC Capital made several sizable purchases in the company, revealed in recent 13G filings with the SEC. If the stock continues to get cheaper while SAC Capital and other insiders continue to hold their shares, CY could become an attractive investment opportunity in the near future.

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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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