YouBet.com, Inc. (NDAQ:UBET) shares moved up $0.04, or 1.27% to $3.20 today after New World Opportunity Partners disclosed a 9.3% stake in the company in a Schedule 13D filing with the SEC. The hedge fund also said that it has discussed YouBet.com's business operations, future plans and board makeup with its management and directors. While we do not know the nature of these discussions at this point, New World did express interest in nominating its own director to replace Jay Pritzker depending on share price and industry conditions. The hedge fund also said it mat propose changes to UBET's capitalization, ownership structure, or operations. The company's stock has fallen from a 52-week high of $5.47 in May 2006 to a low of $2.32 before rebounding to its current levels. Still off 14%, the stock could well be the target of some restructuring moves in order to reduce costs and enhance profitability. This makes UBET a stock worth watching, particularly if New World decides to pursue board seats!

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Idaho General Mines Inc. (AMEX:GMO) shares rose nearly 10% during the past two days after Coghill Capital Management disclosed a 27.42% stake in the company and brought some possible business combination transactions to management's attention. The hedge fund also delivered a letter to the company's board that discusses the importance of good corporation governance and asked the company to develop a plan which will enable the it to achieve the highest quartile of corporate governance within the next six months. While no further details were given, the idea of possible business transactions is certainly something worth noting as the typical buyout premiums have hit approximately 4.6x target sales. Moreover, with a 27% stake in the company, Coghill certainly has the power to influence the company's decisions significantly! Combined, these factors make GMO a stock worth following.

Comcast Corporation (NDAQ:CMCSA) agreed to acquire cable-television provider Patriot Media for $482 million in a deal that would give Comcast cover in the central New Jersey area. The privately held company has 81,000 video subscribers in several NJ counties and the acquisition brings Comcasts total number of subscribers to around 24.2 million. Interestingly, the deal also comes only a day after Comcast and Insight Communications Co. announced plans to divide up Insight - a midsize cable operator that jointly serves about 1.3 million subscribers in the Midwest. That deal is valued at around $6.2 billion, including the assumption of debt. Earlier this year, there was also an attempt by the Dolan family to take Cablevision private at $30/share in a deal valued at around $8.9 billion; however, the company's board rejected the offer as being too low.

These recent moves indicate a further push towards cable industry consolidation as larger operators try to expand their customer base. Acquisitions make sense for these large operators since they are able to utilize economies of scale to lower costs and improve the profitability of smaller acquisitions. Moreover, there is constant competition for these networks to keep growing in order to remain competitive with their peers. And the M&A trend will only grow stronger as cable industry multiples remain near all-time lows.

So, what are some other cable names to look out for? Here's our shortlist of possible future deals in this industry:

• Cablevision Systems (CVC) - There was already an attempted takeover of this company, so we know it is an attractive target. Many analysts believe that this it the next big cable buyout, whether by private equity or a public merger.
  
• RCN Corporation (RCNI) - Shares have dropped almost 15% so far this year, if they head lower it could become a target.
• Knology (KNOL) - This is a strong company with a good presence in several southern US markets.

For other potential buyout targets, check out the Google Finance Broadcasting & Cable TV Sector Listing. While mega-deals like Cablevision may be a distant target, it is likely that we will continue to see at least some consolidation among smaller providers while multiples remain at low levels. These stocks are definitely worth keeping an eye on!

The NYSE Group Inc. (NYSE:NYX) will take its biggest step Wednesday toward becoming a truly global financial player when it closes a deal to create the first trans-Atlantic stock market. The New York Stock Exchange consummates its $11 billion takeover of Paris-based exchange operator Euronext NV at ceremonies in the U.S. and Europe. The combination into NYSE Euronext forms the world's biggest stock market, and ushers in a new era for financial markets where securities can be traded on two continents up to 12 hours a day. It will be a crowning achievement for John Thain, the former president of Goldman Sachs Group Inc. who became chief executive of the now 215-year-old NYSE in 2004.

Shares of some of the largest health insurers rose Tuesday after the government announced higher-than-expected payment increases for companies that operate private Medicare plans. The Centers for Medicare and Medicaid Services said late Monday that preliminary payments to companies that run Medicare Advantage programs will rise 3.5% for 2008. The payment boost, made to insurers for each Medicare participant they cover, is less than last year's 3.9% update, but above Wall Street estimates of a 2% to 3% increase.

Humana Inc. (NYSE:HUM), stock rose $2.11, or 3.6% to $61.16 Tuesday on the NYSE. In after-hours trading, shares rose another $0.16 to $61.32. Competitor Wellcare Health Plans Inc., which makes a quarter of its revenue from Medicare Advantage, rose $1.93, or 2.2%, to $88.77. Shares of UnitedHealth Group Inc. rose $0.88 to close at $54.61, while shares of Aetna Inc. were up $0.64 to $44.83, both on the NYSE. Shares of Coventry Health Care Inc. rose $1.10 to close at $58.04 on the NYSE.

The best monthly sales performance ever for Toyota and gains by fellow Japanese automakers Honda and Nissan helped the industry in March top last year's best month for U.S. sales despite declines by GM, Ford and DaimlerChrysler. Toyota's U.S. sales jumped nearly 12% in March compared with a year ago, boosted by record hybrid sales and strong overall car sales. The overall rise in U.S. sales came despite GM and DaimlerChrysler's sales falling about 4% each, and Ford posting a 9% drop.  

Marshall & Ilsley Corp. (NYSE:MI) plans to spin off its data processing arm into a stand-alone publicly traded company in a $4.25 billion deal involving a New York private equity firm, M&I said Tuesday. Warburg Pincus, a New York City global private equity firm will invest $625 million to purchase 25% equity in Metavante Corp. M&I shareholders will own the remaining 75% of Brown Deer-based Metavante. The deal is tax-free. M&I shareholders will receive one share of M&I stock and one share of Metavante Corp. stock for every three shares of Marshall & Ilsley Corp. stock held. Shares of M&I jumped $3.97, or nearly 9% to close at $49.83, after the Wall Street Journal reported that a $4 billion spinoff was in the works Tuesday morning.

Google (NDAQ:GOOG) shares rose Tuesday after the Web search company said that it will start selling and choosing some ads broadcast to EchoStar Communications Corp.'s 13.1 million satellite TV subscribers. Google shares gained $14.07, or 3.1%, to close at $472.60 on the Nasdaq Stock Market. During the past year, the stock has traded between $360.57 and $513. Mitchell also noted that OpenTV is EchoStar's largest technology provider, and that the company also has a relationship with Google, since its founder joined Google last year as head of television technology. EchoStar shares gained $0.50 to close at $44.04 on the Nasdaq. The Rentrak Corp., which sells business intelligence software for tracking entertainment sales data, could benefit from the contract because it can give advertisers real-time measurement data that is better than conventional statistical sampling processes. The company has 42 million set-top boxes across the country. Rentrak shares gained $0.37, or 2.4%, to close at $15.82 on the Nasdaq. Additionally, shares of OpenTV Corp., which may be another beneficiary of the deal, gained $0.09 or 3.6%, to close at $2.61 on the Nasdaq. The shares have ranged from $2.27 to $4.18 over the past year. OpenTV provides software for cable and satellite television.

Pozen (NDAQ:POZN), which is developing Trexima with GlaxoSmithKline PLC, said that Trexima worked better than drugs sumatriptan or naproxen sodium when used alone. The results were also published in the Journal of the American Medical Association. Shares of Pozen rose $1.08, or 7.6%, to $15.30 in extended trading, after rising $0.24, or 2%, to finish at $14.22 on the Nasdaq Stock Market.

FSI International, Inc. (NDAQ:FSII) shares have moved up over 7% since late last week when Chapman Capital disclosed a 6.5% stake in the company and expressed his increasing concern over the apparent divergence between ownership and management of the company in a Schedule 13D filing with the SEC. Specifically, Mr. Chapman was appalled that in approximately 75% of the fiscal quarters comprising FY2000 through FY2006 the company had reported net losses while CEO Benno Mitchell received millions of dollars in compensation. The hedge fund manager was also concerned by the fact that the CEO ran the company from the comfort of his own home. This concern was heightened when Mr. Mitchell's wife answered the telephone at Mr. Mitchell's primary place of conducting business! Since then, no telephone calls have been returned as the company continues to avoid contact with its shareholders. Consequently, the hedge fund said that they plan to solicit interest in acquiring the company by prospective strategic buyers and plan the recruitment of alternative management and corporate governors for the company. If there is significant interest in the company by other players in the semi-conductor industry, FSII shareholders could see significant upside as cost cutting could greatly enhance the profitability of this company. This makes FSII a stock worth watching!

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Tribune Company (NYSE:TRB) shares moved up 2.65% today after the it agreed to Sam Zell's $8 billion buyout offer, making the end of a six month auction process. Under the terms of the deal, Zell will investment $315 million in equity, which will be largely held through an employee stock ownership plan or ESOP. Meanwhile, Zell will retain a subordinated note and a warrant enabling him to acquire 40% of Tribune's common stock. The company also agreed to sell the Chicago Cubs and 25% of its Comcast SportsNet Chicago interests to pay down debt after the 2007 baseball season. Tribune's chairman, president and CEO Dennis FitzSimons said, "As a private company, Tribune will have greater flexibility to transform our publishing/interactive and broadcasting businesses with an eye toward long-term growth."

How is this entire deal going down? Well, first there will be a cash tender offer for around 126 million shares at $34 per share, funded through loans and a $250 million investment from Zell. This initial tender offer is expected to be completed by June. Then the company will implement a merger agreement in which Tribune and the ESOP will merge and all remaining Tribune stock will be converted to cash at $34 per share. The entire process is expected to close in the fourth quarter of this year, marking an end to the lengthy and heated Tribune auction process.

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The Brink's Company (NYSE:BCO) is again under pressure from dissident shareholders to unlock value through a strategic transaction. MMI Investments disclosed an 8.3% stake in the company today and recommended that the company pursue a tax-free spin-off of one of BCO's two business segments to create value for shareholders. MMI, along with other shareholders, believe that Wall Street has perpetually undervalued the combined enterprise despite all the changes of the past few years, BCO's premier brands, and its best in class operating model in both monitoring and cash-in-transit. Based on a sum-of-the-parts analysis, MMI believes that the potential value to be created via a tax-free spin-off could mean a $79 per share valuation - a 25% premium to the current stock price.

MMI Investments believes that a spin-off is the best option since the move would align the company with the increasingly specialized comparables universe (ie. Securitas Direct, Protection One, Loomis, Tyco) and enable the company to retain tax-free treatment without inhibiting other value-enhancing options. The hedge fund also believes there are several business reasons for the spin-off, including;

• BHS and Brink's have different cash flow and capital investment requirements
• Both entities would benefit from separate access to equity and debt capital markets
• Potential for a higher valued equity currency to compete in the highly competitive M&A market
• Management of each entity would have the opportunity to focus exclusively on their distinct businesses
• Employees could be incentivized through stronger equity compensation plans more closely aligned to the performance of their business

Indeed, the company's 10K already suggests that BHS and Brink's Inc. are two separate subsidiaries, while the two entities do not even share facilities in any significant way. Moreover, if the spin-off were to take place, the two resulting companies would both have market capitalizations of approximately $1.5 billion or greater - more than enough for public company critical mass. So in the end, there is little reason not to pursue such a strategic transaction, as it would greatly enhance shareholder value and provide the company with greater flexibility. Combined, this situation makes BCO a stock worth watching!

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Credit card transaction processor First Data Corp. (NYSE:FDC) said that it is being acquired by an affiliate of private equity firm Kohlberg Kravis Roberts & Co. for about $27 billion, which would be among the richest ever private takeover offers in the U.S. The proposed deal comes amid a flurry of activity by buyout groups to take public companies private. KKR has offered $34 a share for First Data, a premium of about 26% over First Data's closing price last Friday.  First Data shares rose $5.55, or 21%, to close at $32.45 Monday on the NYSE after briefly rising to a 52-week high of $32.90. It has about 754 million common shares outstanding which would be worth $25.6 billion at the offered price. In addition, the company said unvested stock options and restricted stock awards that would vest upon a takeover would add about $1.4 billion to what the buyer would pay for First Data stock, boosting the deal's value to about $27 billion.

Real estate mogul Sam Zell won the battle of the billionaires Monday, landing media conglomerate Tribune Co. (NYSE:TRB) after a down-to-the-wire bidding war. Even with the buyout's $8.2 billion price tag, the outlook for the nation's second-largest newspaper publisher remained as uncertain as it did six months ago when it began a strategic review to boost a lagging stock price. A big chunk of new debt also will be required to pay the $34 a share cash buyout. Zell is counting on repaying the debt largely through tax benefits from a new employee stock option plan that would supplement existing retirement accounts for the company's 20,000 workers. Aside from selling the Chicago Cubs baseball team and its stake in Comcast SportsNet, Zell and Tribune executives were mum about prospects for the rest of the company's assets, including 23 television stations and nine newspapers ranging in size from the Los Angeles Times and the Chicago Tribune to the Daily Press in Newport News, Va. that will remain after two papers in Connecticut are sold. The buyout will be conducted as a two-part deal, the company said. The first stage, expected to be completed in the second quarter, will involve a cash tender offer of $34 per share for 126 million shares, more than half of the outstanding Tribune shares. The remaining shares will be purchased later at the same $34 per share price. Tribune has about 240 million shares outstanding, according to a regulatory filing.

New Century Financial Corp. (OTC:NEWC), once the nation's second-largest provider of home loans to high-risk borrowers, filed for bankruptcy protection on Monday, the victim of its own financial missteps as well as pressures felt by its rival lenders. New Century immediately fired 3,200 workers, more than half of its work force, and said it intends to sell off its major assets.

Citibank, the retail banking arm of Citigroup Inc. (NYSE:C), said Monday it's starting a mobile banking service that customers can download to their cell phones. The service, Citi Mobile, will be introduced first in Southern California and should be available throughout the United States by midyear, bank executives told a news conference in New York. Citi joins other U.S. financial institutions that are rolling out wireless banking applications. New York-based Citigroup, the nation's largest financial institution, sees the new service as yet another channel for customers to use for their banking, beyond the Internet bank Citibank Online, automated teller machines and the Citi call center operations.

M&T Bank Corp’s (NYSE:MTB) stock dropped 8.5%, or $9.88, to $105.95, after it said late on Friday that problems in mortgages with limited income documentation would hurt results.

Sun Microsystems (NDAQ:SUNW) shares declined 3.5%, or $0.21, to $5.80 after Sanford C. Bernstein lowered its rating on the company's stock, saying fiscal Q3 results could be disappointing.

US phone company AT&T Inc. (NYSE:T) said it and Mexican cell phone operator America Movil were in talks to buy stakes in the company that controls Telecom Italia for about $6.4 billion. AT&T shares ended up $0.03 at $39.46.

Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) rose $2.97, or 4.6%, to $67.82, after announcing Steven J. Heyer has resigned as chief executive and a director after the company's board lost confidence in his leadership. The company also reaffirmed its first-quarter and full-year guidance.

Apple Inc. (NDAQ:AAPL) shares rose $0.74 to $93.65 after it reached an agreement with EMI Group PLC to sell the record label's songs online without copy protection software. However, the deal did not include The Beatles catalog.

Automatic Data Processing (NYSE:ADP) announced late Friday that it has completed the spin-off of its brokerage services group via a tax-free distribution to its shareholders. ADP said its shareholders would receive one share of the new Broadridge stock for every four shares of ADP stock that they own. The new stock will trade on the NYSE under the symbol "BR" beginning on Monday.

Atria Group (NYSE:MO) announced that it had completed its spin-off of Kraft Foods Inc. (NYSE:KFT) to Altria's sahreholders. The distribution of Altria's 88% stake was made on Friday to shareholders on record as of March 16th. Altria shareholders received 0.69 shares of Kraft for every share of Altria common stock held.

M&T Bank Corp. (NYSE:MTB) said trouble in its subprime residential mortgage unit will reduce its first-quarter net income to $1.50 to $1.60 a share compared to an original estimate of $1.86 per share. First-quarter profits will be cut by $7 million, or 7 cents per share, as a result of a $12 million reduction in the carrying value of M&T's socalled Alt-A mortgage portfolio held for sale.

Interpublic Group of Cos. (NYSE:IPG) said it has been informed by Johnson and Johnson of its decisiont o review media planning and buying. Interpublic is one of J&J's media agencies and one of its larger clients.

Potlatch Corp (NYSE:PCH) said it has agreed to sell its 17,0000 acre hybrid poplar tree farm in Boardma, Ore., to a private-equity tree-farm investment fund for $65 million. The deal is expected to close in the second quarter of 2007. The company said that it expects to incur an after-tax book loss of roughly $33.5 million on the sale, which will be recorded in the first quarter of the year.

Walter Industries (NYSE:WLT) was featured positively in Barron's Online. The article stated that while results and earnings may be volatile, the company's free cash, expansion plans, and dividend should keep the fire alive for shareholders.

Dendreon (NDAQ:DNDN) shares more than doubled in value by Friday's close after a FDA advisory committee concluded that the company's novel, experimental prostate cancer drug Provenge was both safe and effective. Given the results, many analysts raised their price targets for the company to around $20 per share. Meanwhile, the stock currently trades at $12.93.

Beazer Homes USA (NYSE:BZH) said on Friday that it would review two lawsuits filed against the homequilder, one of which accuses the company of using practices that allowed unqualified borrowers to get loans to buy its homes, but said it believes both were without merit.

Cephalon (NDAQ:CEPH) said on Friday that US regulators were willing to approve the company's experimental new drug Nuvigil for exxcessive sleepiness, but will require the company to carry prominent warnings of a skin-rash danger.

eSpeed Inc. (NDAQ:ESPD) shares moved up $0.19, or 2.07%, to $9.38 after WC Capital disclosed a 6.4% in the company and expressed their concerns about the company's valuation. The activist hedge fund said that their analysis has led them to believe that the range of the company theoretical valuation could be considerably higher than the current share price, which could result in a value 28% to 70% greater ($12 to $16 per share) than the current valuation of $9.40 per share. The move comes after another large shareholder, Chapman Capital, disclosed a 9.3% stake and made similar demands that the company immediately put itself up for sale. The problem facing both shareholders is the fact that 88% of the company's voting power is controlled by Mr. Lutnick and his affiliates due to a classified share structure in which Class B shares have 10 votes each.

Problems began in early 2004 when several investors began to recognize a significant divergence between the performance of the company's common stock and its publicly traded peers. Specifically, in 2004 the company stock plummeted 47% while that of its peers remained flat, and in 2005 the company's stock dropped 37% while its peers added 49%. Then in January of 2006 there was a glimmer of hope when The Daily Telegraph reported that Cantor Fitzgerald was preparing a stock market float of BGC Partners, its London-based brokerage business, in a move that was expected to lead to a merger with eSpeed, the Nasdaq-quoted broker also controlled by Cantor, to create a company worth between $500 million and $1 billion. However, this deal never materialized. Then, in a highly questionable December 2006 Form 4 filing with the SEC, Mr. Lutnick was granted, free of cost, 800,000 Class A common stock options - representing 3% of the company's outstanding shares! This upset many investors who feared the potential dilutive effects of the options. Finally, the last straw came in February of this year when the company issued a press release that disclosed its FY2007 financial outlook. Investors were outraged to find out that company projected nearly break-even operating performance due to approximately $152 million of non-GAAP operating revenues being consumed by $146 to $148 million of non-GAAP operating expenses, a level of spending which investors have thought unacceptable.

Now, WC has suggested that the board of directors immediately review several strategic alternatives for the company:

1. Sale of the company
2. Conversion of Class B shares to Class A shares
3. Return of capital to shareholders (one-time dividend/share repurchases)
4. Initiation of procedures and structures increasing eSpeed autonomy

Clearly there are changes that need to be made to this company and with two shareholders now expressing concerns, maybe the company will institute some changes. Regardless, this is definitely a stock worth watching!

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