Electronic Arts (NDAQ:ERTS) CEO Larry Probst said that the company was "at the very beginning of the next significant growth cycle" after receiving sales boosts from the new PlayStation 3 and XBox 360 systems.

AOL Time Warner's (NYSE:TWX) chief executive Steve Swad left the company last week to join a private equity firm, a move that follows many others in the company as they attempt to convert from an internet provider to advertising giant.

Dell Computers (NDAQ:DELL) said it has hired Ron Garriques, Motorola handset chief, to lead the company's consumer group. This move follows a series of other new executives filling in the ranks of Dell as the company attempts to turn itself around after several disappointing quarters.

DaimlerChrysler (NYSE:DCX) reportedly is in talks to sell slumping U.S. division to General Motors. This move would generate significant cash for the automaker to assist in its efforts to further focus on its core competencies.

Morningstar (NYSE:MORN) moved up on Friday after analysts predicted strong growth for the fast-moving financial company. Elliott Schlang of Great Lakes Review, the institutional research arm of Soleil Securities Corp., is predicting Morningstar's fourth-quarter net income will jump 31.5% to $13.3 million, or 28 cents a share. The company generated profits of $10.1 million, or 22 cents per share, in a record-setting 2005 fourth quarter.

Simon Property Group and its partner won a brief bidding war for the Mills Corp. (NYSE:MLS) and its 38 shopping malls after sweetening their initial offer by $80 million.

The Brinks Company (NYSE:BCO) shares moved up $0.48, or 0.77%, to $62.90 during Friday's trading after Bloomberg released an article about Pirate Capital's intentions with the company. According to the article, Pirate manager Hudson said, "At this point the only question in my mind is whether the company should be sold in its entirety or split into two pieces and each piece sold to a separate buyer." Word of this question comes after Hudson was able to obtain a seat on the company's board after agreeing to withdraw their proxy contest. Meanwhile, Pirate is still maintaining their 8.5% stake in the company with the additional support of MMI Investments. Combined, these factors make BCO a stock that is definitely worth keeping an eye on!

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Caterpillar Inc. (NYSE:CAT) shares moved up $1.50, or 2.27%, to $67.66 today after the company announced a $7.5 billion share buyback over the next five years. The company also disclosed a joint venture move to increase their presence in the Asian markets. The move clearly indicates the company's confidence in its future cash flows and earnings growth over the next few years. Moreover, the fact that they completed their previous program more than a year and a half ahead of schedule is definitely a positive indicator. Even after the $1.5 billion per year buyback program, the company should still generate approximately $1.75 billion in spare cash per year with a healthy pension fund. While the company's shares have stalled for almost a year, the buyback and expansion into Asian markets may be enough to propel the stock out of its range to the upside. Combined, these factors make Caterpillar a stock definitely worth watching!

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STAAR Surgical Company (NDAQ:STAA) moved up $0.18, or 2.94%, to $6.31 today after Broadwood Capital disclosed a 9.5% stake in the company. The fund also commended the company on its substantial and ongoing improvements that came about after implementing Broadwood's governance reforms that were originally requested in April 2005. Notably, the fund also stated that because the company's increasing revenue growth and improving margins have not yet been reflected in its stock price, the fund may continue to oppose any proposed acquisition of the company at a price that does not represent a very large premium to its current market value. While the company is currently trading above enterprise value, the present value of future cash flows accounting for the recent revenue increases may demand a higher premium in the event of a buyout. Regardless, given Broadwood's confidence in the company, this may be a stock worth putting on the radar throughout the next few months!

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Warwick Valley Telephone Company (NDAQ:WWVY) shares moved down $0.90, or 0.53%, to $17.05 today after Santa Monica Partners LP disclosed a 2.4% stake in the company. The fund also voiced concerns that the company was falling behind in technology and suggested that it immediately put itself up for sale. According to the letter:

New initiatives are only giving WVT false hope. But we are dead.  However, fortunately, with nearly $10 million in net cash on the last published balance sheet, we are not broke. Technology has passed us by, done us in, and now overpowered us. We are too small to fight the likes of low-cost software based phone service competitors like Skype.  We are too small to be economic vs. the giant cable and telecom companies. We are spending on hardware and unnecessary and fast becoming old wire line technology. We can't win no matter how much good cash from our hugely profitable OCP we throw at the POTS.

You should realize I am not your best friend. I am your only friend.  We need to sell while we still have something to sell.  Investors became stockholders to make money.  Take the money and give it to shareholders in order that they may invest it somewhere else.  Only then will shareholders have a chance to make money. Let's be honest and realistic, neither you, nor the now resigned management, nor the present interim hires, have any answers to these questions and clearly you are all well aware of this.

The company should be sold or possibly split up, and the POTS sold, and now. Give my suggestions a real and immediate hearing and consideration and implement one or more of them immediately or propose a better alternative right now, immediately. The bottom line is that WVT's intrinsic value is much greater than its $84 million enterprise value. The questions is, are you ready to act to bring out this value now or not?

Clearly the company is troubled in a business that is quickly being outpaced with new technologies like Skype along with larger suppliers edging them out with economies of scale. The company still has $10 million in net cash and generates a positive cash flow, which would make it attractive to potential acquirers. Whether or not a sale takes place though depends on management's response to these suggestions. Regardless, this is definitely a stock to keep an eye on!

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Ceridian Corporation (NYSE:CEN) shares added $0.23, or 0.69%, today as investors applauded the company's decision to explore a broad range of strategic alternatives to enhance shareholder value. We know that Bill Ackman's Pershing Square initially requested that the company spin off its Comdata unit, which was an idea later supported by Relational Investors. The spin off would enable Ceridian to unload debt and cash in on its Comdata stake, while allowing Comdata to realize its intrinsic value on its own. Now that the company has agreed to explore possible alternatives, investors are just waiting for the board's decisions.

Interestingly, Bill Ackman disclosed (in a Form 4) that he purchased a million Jan '09 $24.43 American-style call options on February 12th at $9.89 a piece. These in-the-money options are convertible into common stock at a price of $34.32. Why would Ackman want in-the-money options? Well, it could be his ticket to a huge payday if the spin off ends up taking place! For only $9.89 per option, Ackman is able to guarantee himself a large stake in the Comdata entity when it is spun off to shareholders while leaving enough room to liquidate the options if it falls through. The move also gives Ackman the ability to convert the options to shares in the event he needs an additional 1,000,000 votes (ie. if management ends up rejecting his proposals). Combined, this move makes CEN a stock that is definitely putting on the radar for the next few weeks.

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American Strategic Income Portfolio (NYSE:ASP) is a diversified closed-end management investment company that invests in mortgage-related assets that directly or indirectly represent a participation in or are secured by and payable from mortgage loans. Sit Investment Associates filed a Schedule 13D/A with the SEC today stating that they believe the shares of ASP have been trading at a significant discount to net asset value during the past several years. Consequently, Sit Investment Associates, Inc. ("SIA") and its subsidiary, Sit Investment Fixed Income Advisers, Inc. ("SIFIA"), have determined that it is in the best interests of certain of their clients to pursue with the company changes in the ASP's practices that, if adopted, would provide a limited opportunity to shareholders of the Issuer to redeem their shares at net asset value, or to pursue other means which would enable shareholders to realize the net asset value for their shares of the company.

Now, they successfully did this once before in 1999, when the company listened to their request and repurchased 10% of their outstanding shares at net asset value. However, the company did not make a similar offer in 2001, despite being pressured to do so. A little while later, the board of directors for the company approved a proposal to reorganize the company into a specialty finance company that would elect to be taxed as a real estate investment trust (REIT). Under that proposal, shareholders who did not wish to receive shares of the REIT would have the option, subject to certain limitations, of electing to exchange their shares for shares of a newly cormed closed-end management investment company with investment policies, restrictions, and strategies similar to that of ASP. After this was announced, SIA held discussions with management about the proposal.

Now SIA and SIFIA are asking the company to implement this proposal or other possible alternatives that would reduce or eliminate the discount at which the shares of the company will trade in the future. These alternatives include a possible share repurchase (like the 1999 one) or implementation of the aforementioned REIT strategy. SIA and SIFIA both seek a way for shareholders to liquidate shares of the company at the company's new asset value. However, they did note that they do not seek to influence or control the management of the company. But with a 32% stake in the company, they have a significant voice in what goes on! Combined, these factors make ASP a stock that is definitely worth watching over the next few months!

Wolseley plc (NYSE:WOS) shares rose $1.86, or 7.18%, to $27.78 today after UK newspaper CityAM reported that Cinven has been working with Goldman Sachs to identify a buyer for its Wolseley US operations. The private equity firm reportedly approached Home Depot (NYSE:HD) about a possible sale, but was quickly rebuffed. Many investors believe that Wolseley's weakened share price - as a result of the housing bubble - makes it an attractive target, while today's interest rate hike improves its future prospects. Combined, this makes for a great opportunity for someone to step in and make a bid for the company. While all of this is still unconfirmed speculation, it does make WOS a stock that is definitely worth watching over the next few weeks!

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Tier Technology, Inc. (OTC:TIER) may find itself in hot water soon after 9% holder Giant Investments LLC recommended that the company put itself up for sale in a Schedule 13D filing with the SEC. The hedge fund reasoned that the company lacked the necessary scale to continue as an independent public company - that is, the expenses of being public represented a large percentage of their income. Consequently, the company's value would be unlocked if it were able to find a suitor that would be able to lower these costs with economies of scale. This idea of hidden value through excessive costs of being a public company is extremely common in the OTC markets, and many large hedge funds are able to successfully execute their plans due to the limited liquidity and small market caps (making for an easier sale).

Interestingly, Giant also requested that the company sign a confidentiality agreement with them to evaluate strategic alternatives involving themselves or their affiliates. This implies that the hedge fund knows of parties that may be interested in acquiring the business, which is certainly a positive sign for shareholders. Meanwhile, they maintained that their primary interest is to have the value of the common stock maximized, regardless of whether or not their affiliates are involved. To seal the deal, Giant nominated their own Jim Stone to the company's board to assist in the process, saying they believe that Jim Stone would be a strong asset to Tier as a member of its Board of Directors and help shareholders maximize the value of their investment. This election is set to take place on February 28th of this year. Combined, these factors make TIER a stock that is definitely worth watching over the next few months!

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Alcoa, Inc. (NYSE:AA) shares jumped $1.90, or 5.76%, to $34.80 today on reports that BHP Billiton and Rio Tinto are each contemplating bids for the Pittsburgh-based aluminum producer. Alcoa is one of the largest players in the mining industry, valued at more than $28 billion. The Times of London newspaper initially reported on the developments (citing unnamed sources) saying that the two mining giants had were independently conducting feasibility studies for a possible acquisition of Alcoa.

Neither company has approached Alcoa's board and all companies declined to comment; however, given the rapid rise of BHP Billiton and Rio Tinto stock prices and the weak performance of Alcoa recently, this move certainly wouldn't be surprising. Moreover, Morgan Stanley noted that Hindalco's plan to acquire Novelis highlights the value of Alcoa's downstream operations. Many analysts are pegging the stock's value at between $36 and $38 per share, but perhaps more in the event of a leveraged buyout, especially if there are multiple bidders. While nothing is certain, this is certainly a stock to keep an eye on over the next few months!

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