Time Warner Inc. (NYSE:TWX) shares jumped Monday after there was speculation that the media giant may be able to unlock more value through restructuring and possible selling off its publishing unit. The speculation began after Bear Stearns analyst Spencer Wang upgraded Time Warner to "outperform" from "peer perform" explaining that the company could improve share value by speeding up its restructuring efforts over the next 12 to 18 months. One possible catalyst, according to the analyst, is a divesture or major restructuring of Time Warner's publishing division. This is a possibility since the company has already sold a number of its magazine and publishing assets recently. Wang believes that this move makes sense for the company since the division lacks synergies with other Time Warner business, which are video-centric. Moreover, the division has been somewhat of a drag on the company's growth rates and future prospects.

A leveraged spin-off of the publishing division would provide cash for Time Warner while giving shareholders a stake in the new entity - all through a presumably tax-free transaction. The transaction would not only result in an increased cash stockpile for Time Warner, but also a potential vehicle to unload some debt. It is also important to remember that spin-offs themselves tend to outperform the overall market in the first year or two after the separation. Combined, these factors make a potential TWX spin-off something worth following closely!

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Delta Air Lines Inc. (OTC:DARLQ) forecast an operating profit of $816 million this year and said that it would exit bankruptcy and re-list its stock in May after more than a year and a half in Chapter 11 bankruptcy reorganization. The deadline for creditors to vote on the company's reorganization plan is April 9th, with the bankruptcy court confirmation hearing set for April 25th. Meanwhile, a stock listing could come in the first week of May pending a decision on which exchange the shares would be listed on, which Delta is holding off on announcing publicly. This is good news for the company and its creditors as the company could finally put the bankruptcy case behind them and focus on improving its core operations.

Many analysts are also saying that the company could become a takeover target due to its largest asset - approximately $7.8 billion in net operating losses that it could carry forward to offset its taxable income in years ahead. Some are speculating that the airline industry consolidation will be one of the top issues for discussions by Delta's board once the bankruptcy case is behind them. Earlier this year, Delta fought off a hostile $9.75 billion bid from U.S. Airways Group, which definitely shows an interest in the company. This makes Delta a stock worth following.

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The BISYS Group (NYSE:BSG) shares moved down marginally after Mr. Ahmet Okumus disclosed a 10.14% stake in the company and expressed his interest in obtaining a seat on the company's board of directors in a Schedule 13D filing with the SEC. The Okumus Capital LLC President said that while he has the utmost confidence in the ability and intentions of the current board and management, he believes that his perspective as a financial professional and representative of a significant shareholder on the board would provide the board with practical insight and guidance in considering the company's strategic alternatives. Moreover, he believes that his experience in identifying undervalued assets, along with his knowledge of financial engineering and capital allocation could make an immediate positive impact to the board during this critical period.

This news followed speculation back in February that the company could be the target of a takeover bid. BISYS said in August that it had hired investment bank Bear Stearns to help it explore strategic alternatives, including a possible sale of the company. Since then, the company has resolved several of its problems with the SEC and other accounting issues. Then Murali Gupta, an analyst at investment bank Keefe, Bruyette & Woods, said that the company would likely be sold, adding that it would likely be to a private equity fund through a leveraged buyout. The valuation is estimated as being between $11 and $14 per share. Whether there is any substance to this rumor remains to be seen; but perhaps with the guidance of Mr. Ahmet Okumus, perhaps the company will have a better chance. This makes BSG a stock worth watching!

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Lennar Corp. (NYSE:LEN) found themselves with a 73% plunge in their Q1 earnings, following the trends of a slumping housing market. The company predicts that it is going to fall short of 2007 earnings goals. Since the start of February, homebuilders KB Homes, Hovanian Enterprises Inc. and Toll Brothers Inc. all reported falling profits. Miami-based Lennar reported that net income for the quarter ended Feb. 28 fell to $68.6 million, or $0.43 per share, from $258.1 million, or $1.58 per share, a year earlier. The results were in line with expectations of analysts. Revenue declined 14% to $2.79 billion from $3.24 billion a year ago, topping Wall Street's estimate of $2.49 billion.

Delta Air Lines Inc. (OTC:DARLQ) expects to emerge from bankruptcy protection April 30 with an eye on improving customer service and selling more assets to build shareholder value, it said Tuesday, raising the possibility it could shed feeder carrier Comair. Delta is projecting a pretax profit, excluding special and reorganization items, of $816 million in 2007. Delta is forecasting a narrower loss of $25 million to $50 million in the first quarter, which ends Saturday. He said Delta expects to get a positive vote of creditors on the airline's reorganization plan, which he said should be approved by the bankruptcy court after a hearing April 25.

Amylin Pharmaceuticals Inc. (NDAQ:AMLN) shares jumped off of a negative Wall Street outlook for possible future competitor ConjuChem Biotechnologies Inc. That company's diabetes drug candidate PC-DAC was not more effective than Amylin and partner Eli Lilly's Byetta in a recent study. Amylin shares gained $1.75, or 4.8%, to close at $38.27 on heavy trading volume. The stock has traded between $35.55 and $51.54 over the last 52 weeks.

Shares of GTX Inc. (NDAQ:GTXI) fell $1.12, or 5.4%, to $19.78, having traded between $7.70 and $23.40 over the last 52 weeks. Shares of Altus Pharmaceuticals Inc. shed $0.68, or 4.4%, to close at $14.94, having traded between $10.75 and $23.59 over the last year.

Three San Antonio area oil refiners won contracts with the Department of Defense totaling $339 million. Refinery Associates of Texas is a petroleum products trading company based in New Braunfels. The company has won a $172 million contract to supply the government with naval distillate from a refinery in Pasadena, Texas. The Defense Energy Support Center in Fort Belvoir, Va., is managing all the supply contracts, which will not expire until April 30, 2008. AGE Refining in San Antonio won a $92 million contract to supply the military with jet fuel. Tesoro Refining and Marketing Co., a subsidiary of Tesoro Corp., also won a $75 million contract for jet fuel. Tesoro will supply the government with jet fuel from its refinery in Mandan, N.D. A week ago, a Valero Energy Corp. subsidiary won a separate $499 million fuel contract from the government.

The U.S. Navy on Tuesday awarded an $8.9 million delivery order to General Electric Co. (NYSE:GE) for work on H-53 helicopter engines. Shares of General Electric fell $0.21 to close at $35.79 on the NYSE.

Shares of FuelCell Energy Inc. (NDAQ:FCEL) surged Tuesday after the company announced a lucrative deal to supply fuel cell power products to Connecticut. The deal is valued at $200 million, if all projects are approved. Shares of FuelCell surged $1.40, or 19.4%, to $8.60 on the Nasdaq Stock Market in midday trading. The stock spent most of 2006 in decline since hitting a 52-week high of $15 in April. However, shares have climbed 12% so far in 2007.

Morgan Stanley (NYSE:MS) offered additional details regarding its pending Discover Financial Services spin-off in a Form 10-12B filing with the SEC. The spin-off is expected to be a tax-free distribution of its common shares to Morgan Stanley shareholders. The new entity is expected to be listed on the New York Stock Exchange under the ticker symbol "DFS" in the third quarter of this year. The already-approved spin-off would follow Mastercard's successful recent IPO and come in just before Visa's anticipated IPO later this year.

Discover itself is a leading credit card issuer and electronic payment services company with one of the most recognized brands in the U.S. financial services. Since its inception in 1986, the company has grown to become one of the largest card issuers in the United States, with more than 50 million cardmembers and $45.7 billion in managed receivables as of November 30, 2006. They are also a leader in payment processing, as they are only one of two credit card issuers with its own U.S. payments network and the only issuer whose wholly-owned network operations include both credit and debit functionality. In 2006, the company processed mroe than 3 billion transactions through their own network and the PULSE network. Overall, Discover's revenues (net interest income plus other income) have increased over the last three years, from $4.5 billion in 2004 to $5.1 billion in 2006, making them a substantial player in their market.

Typically, investors look for several criteria when selecting stocks. Given Discover's market leadership, strong growth, solid entrenchment, and excellent prospects, many investors will likely be interested in this new spin-off. Moreover, spin-offs themselves offer unique opportunities due to their inherent structuring. Often times, parent company shareholders do not want shares in the new entity, so they immediately sell them. This selling pressure creates a temporary mis-valuation, which can be a great opportunity for enterprising investors to take early positions. The spin-off's proceeds will also generate a significant amount of cash for Morgan Stanley - but an amount that has yet to be announced. These are two great stocks to watch as the spin-off draws closer.

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Tribune Company (NYSE:TRB) shares moved up $0.46, or 1.5%, to $30.99 after the company's board of directors is said to be favoring a buyout offer from real estate mogul Sam Zell for $33 per share or $8 billion. Meanwhile, billionaires Ron Burkle and Eli Broad are saying that Tribune did not treat them fairly during the auction process. In particular, the two said they were not privy to information given to Sam Zell back in September when they made their bid for the company. The special committee of Tribune's board that is evaluating its strategic options has reportedly turned down several offers and is also reportedly looking at a "self-help" plan that would include a spinoff of its television stations, and borrowing enough money to pay a substantial dividend to shareholders. Currently, Zell's offer remains the highest at a nearly 8% premium to the company's current market price if approved. Either way, this is a great company to keep an eye on as the company mulls its options.

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Riviera Holdings (AMEX:RIV) shares moved up $2.46, or 9.66%, to $27.93 after an investor group led by Mr. Kanavos, Robert Sillerman, Brett Torino and Barry Sternlicht offered to acquire the company for $27 per share. The group said they are prepared to immediately enter into a merger agreement with Riviera on substantially the same terms as the April 5, 2006 merger agreement between their acquisition vehicles and Riviera. The offer represents a 13.5x 2006 EBITDA multiple, which the investment group believes is a substantial premium. They also said that their proposal has the support of other large stockholders who have reportedly contacted the company directly to confirm the same. Whether or not this transaction goes through depends on whether the board lifts several restrictions in order to make it possible - for this, the investor group has set a 5:00PM PST on March 30th. Given that the stock is currently trading above the buyout price, it appears that some investors may believe that the company is worth more. Regardless, this is definitely a stock to watch as this situation unfolds!

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Citigroup Inc. (NYSE:C) expects to have completed its corporate cost review by mid-April, company officials said Monday, as published reports suggested the nation's largest bank was considering cutting about 15,000 jobs. It is said that the cuts could result in a charge of more than $1 billion against earnings. Citigroup shares fell $0.18 to close at $51.54 on the NYSE.

Oil prices settled Monday at their highest level so far this year on tensions between Iran and the West following Tehran's detention of British naval personnel. Gasoline futures prices climbed above $2 a gallon to their highest level since last September as a new driving season nears. On the New York Mercantile Exchange, light, sweet crude for May delivery rose $0.63 to settle at $62.91 a barrel, the highest settlement for the front-month contract since Dec. 20. Earlier, the contract rose as high as $63.30 a barrel.

Northwest Airlines (OTC:NWACQ) can begin seeking creditor approval of a plan to exit bankruptcy that values the company at an estimated $7 billion, a judge ruled Monday. The decision puts the airline in the last stages of bankruptcy before it can emerge from court protection. Eagan, Minn.-based Northwest Airlines Corp. wants to cancel all existing shares in the company and issue 272 million new ones, with a stock offering to sell 27.78 million shares at $27 a piece.

Robust prescription drug sales helped drugstore chain Walgreen Co. (NYSE:WAG) earnings increase nearly 25% in the Q2. The nation's biggest drugstore chain by revenue earned $651.9 million, or $0.65 per share, for the three months ended Feb. 28. That's up from $523.5 million, or $0.51 per share, during the same period last year.

Upscale jewelry retailer Tiffany & Co. (NYSE:TIF) on Monday said Q4 net income was nearly flat, weighed by an impairment charge, flat sales in Japan and higher cost of metals. Earnings for the quarter ended Jan. 31 were nearly unchanged at $140.5 million, or $1.02 per share, from $140.3 million, or $0.97 per share, during the same period last year. Revenue grew 15% to $986.4 million from $858.4 million in the year-ago quarter. Analysts expected net income of $1.05 per share on revenue of $979.1 million.

Dell (NDAQ:DELL) shares rose 3.5%, or $0.79, to $23.62 on the Nasdaq after Goldman Sachs upgraded the computer maker's stock to "buy" from "neutral" amid calls on Wall Street for the company to cut jobs and improve profit margins.

Internet auctioneer eBay Inc. (NDAQ:EBAY) stock rose 4.4%, or $1.39, to $33.22 on the Nasdaq.

3M Company (NYSE:MMM) shares were the biggest drag on the Dow on Monday, down 0.76%, or $0.59, at $77.38 on the NYSE.

Microsoft Corp. (NDAQ:MSFT) said Monday it sold 20 million consumer copies of the new Windows Vista operating system worldwide in February, but analysts said the data shed little light on the program's popularity during its first month on the market. The analyst said 51 million PCs were sold to consumers worldwide in 2002; this year, the research group predicts 96 million consumers will buy a computer. Shares of Microsoft rose $0.20 to close at $28.22 on the Nasdaq.
 
Officials of Safeway Inc. are reportedly interested in buying additional stores. Safeway officials, along with officials from other nationwide supermarket giants like The Kroger Co. of Cincinnati and SuperValu Inc. of Edina, Minn., are said to have expressed an interest in buying stores operated by Roundy's Supermarket Inc., a Milwaukee-based company that owns and operates 155 retail grocery stores in Wisconsin, Minnesota and Illinois under the Pick 'n Save, Copps Food Center, and Rainbow Foods banners. It had sales of nearly $4 billion during fiscal 2006 and employs 22,000 workers. Pleasanton-based Safeway had fiscal 2006 sales of $38.4 billion and currently operates 1,761 supermarkets throughout the United States and Canada. That includes the Dominick's chain in the Chicago area, just to the south of Milwaukee, which Safeway purchased in 1998, and then tried unsuccessfully to sell off several years later when Dominick's was struggling in the nation's third-largest metropolitan area.

Raytheon Co. (NYSE:RTN), the world's fifth-largest defense company, closed on the sale of its aircraft operations Monday to Hawker Beechcraft Inc., with the new owners planning to bolster its international sales and service, the company said. The $3.3 billion dollar sale of Wichita-based Raytheon Aircraft to Hawker Beechcraft was first announced in December.

Redhook Ale Brewery Inc. (NYSE:HOOK) rose $0.10 to $7.52 in extended session trading after closing at $7.42 earlier on the Nasdaq.

First Solar Inc. (NDAQ:FSLR) added $0.99, or 2%, to $58 in the late session after a Banc of America analyst began coverage of the solar cell maker with a "Buy" rating in a client note released after the closing bell.

Vonage Holdings Corp. (NYSE:VG) said Monday the market had overreacted to a federal judge's decision that would bar the Internet telephone company from using technology covered by Verizon Communications Inc.'s patents. New York Stock Exchange-listed Vonage shares shed $1.05, or 26%, Friday to close at $3. On Monday, the shares rose $0.38, or 13%. The shares were first sold to the public in May for $17 each.

New Century Financial Corporation (OTC:NEWC) shares moved down $0.44, or 22%, to $1.56 after two of the company's major bank lenders took possession of loans previously used to secure their financing. The company disclosed in a regulatory filing Thursday that it had agreed to transfer is outstanding loans with both Barclays Plc and Morgan Stanley. Many analysts interpreted this move by the banks as a last-second attempt to salvage at least some value in these loans by auctioning them off themselves. While the company refuses to comment on the situation, many analysts are surprised that the company has not already filed for bankruptcy.

New Century first disclosed that bank lenders were pulling their funding two weeks ago when they received notices of default from Barclays, Bank of America, Citigroup, Credit Suisse Group, Goldman Sachs and Morgan Stanley. The problems themselves first arose after firms that purchased subprime mortgage loans from these lenders became more aggressive in kicking back dud loans stemming from poor underwriting practices. These actions forced them to repurchase loans, which have severely impacted their ability to keep lines of credit open. Whether or not this will result in an official bankruptcy filing for New Century remains to be seen; however, many people believe there may be no other way out. NEWC stock, however, continues to trade at $1.56.

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Tarragon Corporation (NDAQ:TARR) announced earlier this week that it would be spinning off its core homebuilding and real estate development divisions in order to shift its focus on the rental market - an area poised for steady growth as prospective home buyers wait out the residential real estate collapse. The company develops and owns multi-family housing in Florida, New York, Tennessee, and Texas. The spin-off, which is slated for mid-2007, would provide the company with additional funds and enable it to focus more strongly on its multi-family rental business. Tarragon will continue to operate its real estate services business, which provides asset and property management, leasing and renovation services to residential and commercial properties. Following the spin off, Tarragon will change its name to Sage Residential, Inc. while Tarragon's homebuilding and development business will be renamed Tarragon Corporation.

The company believes that the spin off will, among other things, provide both businesses with direct and differentiated access to financing and the capital markets, allow each company to grow through acquisitions appropriate to its business and provide each company with the opportunity to align management incentives with the performance of its business. Moreover, given the current weakness in the sector, the new spin-off may end up being severely undervalued when it makes its debut as an independent entity - creating a great opportunity for enterprising investors to get in at low prices. Regardless, this is definitely a company to watch as it attempts to rid itself of underperforming divisions and turn itself around!

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