Motorola, Inc.'s (NYSE:MOT) Q4 sales are now expected to be between $11.6 to $11.8 billion, versus the guidance of $11.8 to $12.1 billion. Meanwhile, Q4 GAAP earnings per share are expected to be between $0.13 to $0.16, or $0.23-$0.26 ex-items. The consensus stands at $11.99 billion or $0.39 per share.
 
Tractor Supply Company (NDAQ:TSCO) said that its Q4 sales were weaker than expected primarily due to unseasonably warm weather in the northern regions of the country, which resulted in decreased demand for winter related merchandise and lower store traffic. The company now anticipates sales for the full fiscal year to be around $2,369 million. The company anticipates net income of $2.20 to $2.22 per diluted share. This compares to the company's previous full year expectations for sales of between $2,370 and $2,390 million and earnings per diluted share in the range of $2.29 to $2.30. The consensus stands at $2.38 billion and $2.27, respectively.
 
AZZ, Inc. (NYSE:AZZ) reported Q3 EPS of $0.88, eighteen cents better than estimates. Revenues were $65.4 million compared to $44.3 million for the same period last year.  Backlog at the end of the third quarter was $101.0 million versus $83.1 million in November 2005, an increase of 22%. Their earnings are estimated to be within the range of $3.15 and $3.25 per diluted share and revenues to be within the range of $250 million to $260 million. The FY07 EPS consensus remains at $2.84.
 
Spansion Inc. (NDAQ:SPSN) anticipates Q4 net sales in the range of $680 million to $690 million compared to the company's prior net sales guidance range of $710 million to $740 million. The consensus stands at $722.8 million. The change in revenue guidance is due in large part to a late December delay in customer demand for certain high-density custom Flash memory devices. As a result of the revenue shortfall, the company does not expect to reach its goal of breakeven on a net income basis in the fourth quarter of 2006.
 
Silicon Image, Inc. (NDAQ:SIMG) intends to provide guidance regarding revenue for fiscal year 2007, which the company expects will range between $340 million and $360 million (reflecting the sci-worx acquisition and the settlement with Genesis Microchip Inc.). The FY07 revenue consensus remains at $335.04 million.

Tvia, Inc. (NDAQ:TVIA) anticipates that revenues for Q3 will be much lower than expected, with numbers in the range of approximately $1.2 to $1.4 million. The consensus stands at $3.25 million.

Network Equipment Technologies, Inc. (NYSE:NWK) anticipates revenues for Q3 to be in the range of $21.6 to $22.1 million. The current revenue consensus is $20.7 million.  As a result of strong sales activity in the third fiscal quarter, the company expects 2007 fiscal year revenues to reflect 17% to 20% year-over-year growth. The company had previously guided for full fiscal year 2007 revenues to be more than 10% higher year over year
 
American Medical Systems Holdings, Inc. (NDAQ:AMMD) reported preliminary sales of $114.8 million for the fourth quarter of 2006, a 57% increase over sales of $73.1 million in the comparable quarter of 2005. The current Q4 revenue consensus is $108.1 million. Preliminary sales for the year 2006 were reported at $357.7 million, a 36% increase over sales of $262.6 million for the year 2005. The current FY consensus is $351 million. The expected revenue for 2007 has been adjusted from $490 to $515 million from its previously guided revenue range of $505 to $530 million. The company reaffirms previous guidance on 2007 reported earnings per share at $0.76 to $0.81. The current FY07 revenue consensus is $500.35 million with an EPS consensus is $0.75.

Northwest Airlines Corporation (OTC:NWACQ) shareholders suffered yet another setback today after the United States Trustee rejected Owl Creek's requests for an equity committee to represent common stock shareholders in bankruptcy court. This comes after Northwest shares have risen from around $0.55 in mid-2006 to a high of $4.88 on speculation of a possible buyout or deal that would result in common stock retaining their value.

The hedge fund first petitioned the U.S. Trustee back in November of 2006, arguing that such a committee could be justified because:

• the Debtors' cases are large and complex;
• the Northwest stock is widely held and actively traded;
• the interests of Northwest's shareholders are not otherwise adequately represented;
• the Debtors do not, under reasonable (non-strategic) valuations, appear to be "hopelessly" insolvent;
• Owl Creek's request is appropriately timed based on the status of the Debtors' cases; and
• the necessary costs do not significantly outweigh the concerns for adequate representation.

The U.S. Trustee responded to the requests in a letter today, saying:

"In considering your request, as noted above, the United States Trustee sought, and received, input from counsel to the Debtors and counsel to the Committee regarding the solvency of the Debtors and the propriety of the appointment of an equity committee in these cases. Courts in this district have held that the appointment of an equity committee should be the rare exception, and should not be appointed unless equity holders establish that (i) strict application of the absolute priority rule, and (ii) they are unable to represent their interest in the bankruptcy case without an official committee. Accordingly, after careful consideration and ana1ys of your request, the United States Trustee declines to appoint an equity committee at this time." (Read More)

Owl Creek acknowledged this in their Schedule 13D/A filing today, which noted:

"The Reporting Persons sent a letter on November 21, 2006 to the Acting United States Trustee ("UST") requesting the appointment of an official committee of
equity security holders to represent shareholder interests in the Issuer's bankruptcy case ("Northwest Equity Committee"). A copy of that letter was attached to the Reporting Persons original 13D. On December 8, 2006 the Reporting Persons sent a second letter to the UST further requesting appointment of the Northwest Equity Committee. A copy of that letter was attached to the Reporting Persons' Amended 13D. By letter dated December 21, 2006, the UST advised the Reporting Persons that she declined to appoint the Northwest Equity Committee. A copy of that letter is attached as Exhibit 4. The Reporting Persons have become a member of an unofficial Northwest Equity Committee with other entities that own shares of Common Stock for the purpose of requesting that the court overseeing the Issuer's bankruptcy case appoint a Northwest Equity Committee as an official committee in such case. The unofficial Northwest Equity Committee has retained legal and financial advisors to assist in such request and the Reporting Person expects that this request will be made in the near future. The Investment Manager intends to work to protect shareholders' economic interests and is interested in serving on an official Northwest Equity Committee, if recognized by the bankruptcy court." (Read More)

While this is certainly a setback for shareholders, the unofficial committee will likely continue to work to gain representation in court. If they are successful, it could mean significant gains for shareholders if they are able to orchestrate a way to debt-holders to be paid off with cash left over (per Owl Creek's plan). This makes Northwest Airlines a stock worth watching closely over the next few months.

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MetroPCS Communications, Inc. filed for an initial public offering again today after delaying its 2004 IPO due to accounting complications. MetroPCS is a wireless broadband provider for personal communication devices that offers unlimited usage at a flat-rate with no long-term contracts. Since their launch in 2002, the company has experienced great success as the fastest growing broadband PCS provider in terms of both subscriber base and revenue growth.

MetroPCS noted that it has licenses covering approximately 140 million people in 14 of the top 25 metropolitan areas in the United States. As of September 2006, the company had 2.6 million subscribers with a licensed population of 36 million in seven major metropolitan areas in the United States, representing a 7.2% market share in these areas. Assuming the same adoption rates in its other licensed areas, this puts its potential subscriber base at approximately 10.1 million. The company's two major core markets (San Francisco, Miami, Atlanta, and Sacramento) have also seen subscriber growth rates of 50% year over year. This illustrates even more potential if the company chooses to expand into other markets. And with lowering costs per user and a low 4.4% churn rate, the company is in a great position to capitalize on an under-served market.

While the company has not yet disclosed the number of shares that it plans to offer, the ticker symbol it plans to use, nor the exchange it plans to trade on, this is definitely a company to keep an eye on during the next few months as it moves closer to an IPO.

InFocus Corporation (NDAQ:INFS) may find itself under increased pressure during the next few months as Caxton Associates disclosed a 11.2% stake in the company in a Schedule 13D/A filing with the SEC; this is up from the 9.9% stake that it first disclosed in October of 2006. While the activist hedge fund offered no additional insight in this filing, they did provide a detailed overview of their plans in their initial Schedule 13D filing in October in which they said:

"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."

This increased stake illustrates Caxton's continued committment to enhance shareholder value. And with an 11% stake in the company, they are in a better position to force management to make changes - even if it comes down to a proxy battle. Currently, the stock is off of its $3.00 October highs sitting at right around $2.70 per share. While much uncertainty remains, Caxton's actions may foreshadow further pressure being put on the company in the future. This makes INFS a stock worth watching over the next few months.

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BEA Systems, Inc. (NDAQ:BEAS) moved higher today on renewed speculation that the company could be a takeover target. Suntrust analysts said today that Hewlet-Packard Co. (NYSE:HPQ) could buy the company. Despite the fact that the stock has a PEG of 1.65 (above the industry average 1.39) and trades well above enterprise value, buyout rumors continue to surround the enterprise software provider.

Past speculation has centered around a deal with Oracle Corporation (NDAQ:ORCL), which is perhaps one of the most logical suitors. BEA's market cap of just over $5 billion represents only 5.4% of Oracle's market cap, while the acquisition would add new product lines and synergistic customers to Oracle's existing infrastructure. Moreover, we already know that Oracle is not adverse to buying companies, after their laundry list of recent acquisitions.  Either way, BEA is definitely a stock to keep an eye on as the possibility of a buyout remains.

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The Brinks Company (NYSE:BCO) may see some changes made to its board and company direction in the near future after Pirate Capital LLC sent yet another letter, in a Schedule 13D/A filing, to the company expressing its interest in obtaining two seats on the company's board. The activist hedge fund also reiterated the their requests that the company retain an investment bank to examine strategic alternatives, and questioned the company's stated plans to pursue acquisitions.

Pirate Capital also threatened a proxy contest if the board did not act on its requests immediately, saying in their letter that "unless the board acts with a renewed sense of duty, we will not be able to avoid an expensive and lengthy proxy contest." The 8.5% holder then validated their threat by filing a Schedule 14A proxy statement, nominating two of its own candidates to the company's board of directors in the next annual shareholders meeting. Currently, Brink's board consists of eleven members with four of them up for re-election at the next annual meeting. Pirate Capital is targeting two of these four seats, which are held by directors who will not be seeking re-election at the next annual meeting.

Finally, Pirate Capital commended MMI Investments detailed analysis of possible strategic alternatives for the company, which included an LBO, sale to a strategic suitor, tax-free split-up of the company, leveraged recapitalization, or another significant stock repurchase. MMI also noted that their analysis put the intrinsic value of Brinks at around $70 per share or higher. Combined, these two dissident shareholders account for nearly 20% of the company's outstanding shares - giving them significant leverage in any proxy contest. Consequently, Brinks will probably be forced to give up two board seats to Pirate, which would likely result in at least some measures to increase shareholder value.

Pirate Capital's letter says it best: "We do not understand how the Board remains so determined to pursue an acquisition when two of Brink's largest shareholders have independently questioned that course and requested the retention of an investment bank to explore alternatives. The Board's concern should be the interests of its shareholders ... We would welcome an invitation by the Board to meet our two nominees, and we hope that a proxy contest can be avoided so that the Board can remain focused on what is most important; finally putting to rest the enduring undervaluation of BCO shares." Clearly there is a disconnect here between management interests and shareholder interests. And with a combined ~20% stake in the company, these two activist hedge funds have a good chance at enforcing changes to unlock shareholder value and help BCO back up into the $70 range. This makes Brinks a stock worth watching over the next few months.

Read Pirate Capital's Letter to The Brinks Company

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Franklin Templeton Investments announced that they decreased their stake in Taro Pharmaceuticals Ltd. (OTC:TAROF) today from 13% to 11.9% in a 13D/A filing with the Securities and Exchange Commission. The investment fund said it was concerned with the effect on the value of its investment management clients’ investment in TARO, along with the failure of the company to timely file its financial statements for the fiscal year ended December 31, 2005 and the consequential delisting of the ordinary shares from The Nasdaq Global Select Market (formerly "TARO").

Templeton also said that they have met with other shareholders to discuss ways in which they could recoup their losses through conventional or legal means. On October 18, 2006, lawyers for this group sent a letter to the company demanding that it immediately setup a shareholders' meeting to discuss the situation. On December 24, 2006, the group's lawyers sent another letter to the company demanding that they exercise all of their rights against officers of the company, against members of the audit committee, against the company’s internal auditor, against members of the board of directors and against any other person in order to recover their damages and losses incurred by their acts and omissions that fall under any contract or law. Specifically, the fund noted the following:

• Breach of duty of care pursuant to section 252 of the Companies Law.
• Breach of duty to act with proficiency and in a reasonable manner pursuant to section 253 of the Companies Law.
• Breach of fiduciary duty pursuant to section 254 of the Companies Law.
• Breach of the duty to act upon discovery of a deficiency pursuant to section 257 of the Companies Law.
• Breach of statutory duties pursuant to section 63 of the Civil Wrongs Ordinance.
• Breach of the employment agreements with Mr. Kevin Conley and the other employee who was a member of the Company's financial team.

Under section 196 of the company law, Taro has 45 days to respond to this request. If these actions result in a successful lawsuit, it could provide grounds for a larger class action lawsuit that would help recoup losses for the larger investment community. Read more about the issue here. Meanwhile, the stock's delisting and low price has led to speculation that Taro may be a buyout target by a larger pharmaceutical player looking to get into the OTC pharma and API markets. Although this is a long-shot given the company's lack of financials, it remains a possibility in the medium to long term.

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The Home Depot, Inc. (NYSE:HD) surprised investors this morning by announcing the resignation of Chief Executive Officer Robert Nardelli. The "mutually-agreed" resignation comes after many dissident shareholders voiced concerns over the company's stock performance and corporate transparency. These concerns peaked during the company's last annual meeting, in which Nardelli angered investors by monotonously reading a written statement and then refusing to answer any shareholder questions. Meanwhile, there was also disappointment with the company's lackluster performance, especially in comparison to Lowe's Companies, Inc. (NYSE:LOW). Investors noted that LOW's revenues grew by 130% compared to HD's 78%, while LOW's ROA increased 52% compared to HD's nearly flat increase. On a more fundamental level, Lowe's customer service rating also rose to 78 from 75, while HD's decreased to 67 from 75 during the same time period. Combined, the company's performance and lack of corporate transparency ultimately caused the uproar that led to this resignation.

Investors are still concerned, however, over the CEO's estimated $210 million retirement package which includes a cash severance payment of $20 million, deferred stock awards valued at about $77 million and options with an intrinsic value of about $7 million; earned bonuses and long-term incentive awards of about $9 million; 401(k) and other benefit programs currently valued at roughly $2 million; previously earned and vested deferred shares with a value of $44 million; the present value of retirement benefits currently valued at about $32 million; and the payment of $18 million for other entitlements under his contract, which will be paid over a four year period. The company said that Vice Chairman Frank Blake will replace Nardelli.

Home Depot's stock rose $1.32, or 3.29%, to $41.49 on the news in today's trading session.

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MIVA, Inc. (NDAQ:MIVA) announced a deal with Google Inc. (NDAQ:GOOG) today in an 8-K filing with the SEC. The search marketing company said it reached an agreement with Google on December 28th in which they agreed to exclusively utilize Google’s WebSearch and AdSense Services for approved websites and applications. MIVA is well known for the search engine marketing, pay-per-click service, e-commerce offerings, and whitelabel toolbars. This new agreement with Google replaces an existing one with Yahoo! Inc. (NDAQ:YHOO), which will be terminated on January 27th. Although no specific financial details were disclosed in the 8-K filing, the deal presumably offers better terms than the Yahoo! deal. MIVA's stock rose $0.42, or 11.8%, to $3.80 on high volume today after the 8-K filing was released.

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Carrier Access Corporation (NDAQ:CACS) said revenue for the fourth quarter is expected to range from $12.3 million to $12.5 million, versus the consensus of $16.2 million.

Con-way Inc. (NYSE:CNW) said Q4 earnings from continuing operations are expected to be between 72 cents and 76 cents per diluted share. The company had previously provided earnings guidance for the 2006 fourth quarter of between 81 cents and 87 cents per diluted share. The consensus is $0.79.

Witness Systems (NDAQ:WITS) announced preliminary revenue estimates for the fourth quarter and year ending December 31, 2006. Revenue is estimated to approximate $63 million for the fourth quarter and $220 million for the year 2006. The consensus is $58.24 million and $211.8 million. For 2007, the company expects adjusted revenue, excluding hardware sales, to be in the range of $250-$255 million, versus the consensus of $246.8 million.
 
AngioDynamics Inc. (NDAQ:ANGO) reports Q2 EPS of $0.15, two cents above the consensus. Revenues came in at $24.4 million versus the consensus of $24 million. They foresee a FY07 EPS of $0.65, versus the consensus of $0.61, with FY07 revenues of $103 million versus the consensus of $106.7 million.

Immucor Inc. (NDAQ:BLUD) reports Q2 EPS of $0.20, two cents better than estimates. Revenues came in higher at $54.4 million versus the consensus of $51.4 million. They foresee the FY07 EPS of $0.75 to $0.78 versus prior guidance of $0.69 to $0.74 and the consensus of $0.76, and FY07 revenues of $214 to $218 million versus prior guidance of $204 to $212 million versus the consensus of $215 million.
 
Hot Topic Inc. (NDAQ:HOTT) said December sales fell more than five percent. The company announced that as a result of the lower than expected December sales performance, it now estimates net income for the fourth quarter of 2006 will be in the range of approximately $0.20 to $0.22 per diluted share versus previous guidance of $0.33 to $0.38 per diluted share. The consensus is $0.33.