Presidential candidates are gearing up for a good fight and environmental policy is near the top of the list of concerns. Many countries around the world are waiting to see whether or not the United States will sign the Kyoto Protocol this year that would require companies to reduce their carbon emissions between 2008 and 2012. This would put a relatively new, but growing carbon market into the forefront of the global financial system.

The carbon market represents an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Countries bound by the Kyoto Protocol can use carbon trading as a way to meet their obligations to reduce carbon trading and therefore mitigate global warming. To date, carbon trading is seen as one of the most viable approaches to control global warming through economics.

EcoloCap Solutions (OTC-BB: ECOS) is developing an integrated development approach that focuses on both existing and needed infrastructure facilities to produce substantial new value in the form of tradable CERs while also maximizing alternative energy generation co-products. Partnerships with owners of facilities that generate harmful greenhouse gases as well as environmental project owners in developing countries will allow the company to capitalize on opportunities emerging in carbon trading.

To the owners of these projects, EcoloCap offers its expertise in the United Nations certification process, engineering, project management and capital in exchange for rights to the carbon credits that are generated over the life of the project. The company makes money by purchasing these credits for far less than they are worth when sold on the open market. Often times, this differential can be significant, especially when accrued over the life of the project.

As a result, one company to watch during the upcoming presidential elections may be EcoloCap Solutions. Any actions by the United States to join the Kyoto Protocol would result in a substantial boost to the carbon market in general and would in turn benefit companies like EcoloCap that sell carbon credits in the open market. After all, demand would increase while supply would remain the same, thus driving up the price of carbon credits and the value of EcoloCap's inventory. Investors interested in learning more can view a research report by clicking here.

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Allied Capital (NYSE: ALD) is playing out by the book - that is, David Einhorn's book! Allied and David Einhorn have been involved in what some on Wall Street have regarded as an epic struggle between themselves, regulators, government officials, and several government organizations. In fact, Einhorn even wrote a complete book on the struggle called "Fooling Some of the People All of the Time". His premise is that Allied's loan portfolio (or that of its subsidiaries) has been impropertly valued - a thesis that may now prove to be true.

Allied Capital announced that Ciena Capital, one of its portfolio companies, voluntarily filed for bankruptcy protection today. The company said Ciena has continued to experience "significant deterioration" in the value of its assets due to the uncertainty of the financial markets and a reduction in the number of loan buyers. As a result, Allied said its unconditional guaranty of the obligations outstanding under Ciena's revolving credit facility may become due.

This is bad news for Allied Capital as it may be required to pay $320 million to the lenders in connection with the revolving credit facility. This is $150 million of the cash Allied gained on the sale of its good investments while it may have to borrow another $170 million of its unsecured revolving line of credit. Some believe that this could put the company's all-important dividend at risk - the dividend that so many investors have stayed in the stock to receive.

Allied Capital Corporation (ACC) is a closed-end, non-diversified management investment company that operates as a business development company. The Company’s investment objective is to achieve current income and capital gains. The Company is engaged in private equity business. ACC primarily invests in debt and equity securities of private companies in a variety of industries. From time to time, it may invest in companies that are public but lack access to additional public capital.

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Circuit City Stores (NYSE: CC) shares dropped sharply after it reported disappointing earnings, but there is at least one remaining hope for shareholders. The electronics retailer said it would undergo an extensive review of its strategic options. Unfortunately, investors looking for a sale transaction may be waiting awhile- the company noted that it was initially focused on internal improvements to operate as a standalone business. Regardless, a successful turnaround is definitely a prospect worth watching!

Circuit City shares have been in a free fall ever since 2007 when the company first started experiencing a slowdown in sales. This latest quarter has been a nail in the coffin as it posted wider losses and withdrew its financial outlook as it reviews its business ahead of the holiday season. This follows the departure of its Chairman and CEO just last week. Meanwhile, experts are predicting an extremely bleak holiday season this year.

So, where's the opportunity here? Well, Circuit City still owns a substantial number of retail stores and any new blood in management could help a turnaround. Circuit City may have posted losses for five of the six quarters, but any successful execution this holiday season versus competitor Best Buy could help position it for the future. The company plans to launch a new marketing campaign, upgrade its store signage, and boost its in-stock position on key categories.

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The carbon market represents an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Countries bound by the Kyoto Protocol can use carbon trading as a way to meet their obligations to reduce carbon trading and therefore mitigate global warming. To date, carbon trading is seen as one of the most viable approaches to control global warming through economics.

Under the supervision of the United Nations, industrialized member nations are bound to reduce their emission of CO2 and other harmful gases by 5.2%. Companies or other groups that do not meet their reduction quotas can buy "carbon credits" from those who have exceeded their reduction targets.

As an alternative however, carbon credits can be created in developing countries can also generate credits (known as Certified Emissions Reductions or CERs) at a lower cost, and under the UN sponsored exchange mechanism, can be sold to developed countries at the prevailing prices as set on the world market. Hence the business opportunity.

In effect, this forces polluters to pay a charge while sellers are rewarded for having reduced emissions more than needed. The theory is that those that can easily reduce emissions at a reasonable cost can do so, achieving pollution reduction at the lowest possible cost to society.

Market prices for these carbon credits are also on the rise as oil prices continue to rise.  The price of carbon credits is linked to the price of oil in that lower oil results in lower gas, which encourages energy producers to burn gas instead of coal.  Since gas is less carbon intensive than coal, demand for carbon credits falls as energy providers have to buy fewer credits.

Carbon credits are also seen as a safe-haven for traders looking to get into more secure investments, according to analyst firm Point Carbon.  The firm argues that a fell in the projected supply of carbon credits would exceed any drop off in demand, which should in turn lead to higher carbon credit prices by supply and demand economics.

Carbon credits are also gaining popularity among the larger public.  Trading on the European Climate Exchange market along has more than doubled during the first half of the year compared to the same period in 2007.  Chief executive Neil Eckert told BusinessGreen.com that "the growth is not in a straight line and there are ups and downs, but overall there is a really healthy growth pattern."

EcoloCap Solutions (OTC-BB: ECOS) is well-positioned to profit from the bullish carbon credit market as the are a leading producer of Certified Emissions Reductions (or CERs).  EcoloCap Solutions offers innovative and integrated business solutions to help combat global climate change. Specifically, the company helps create environmentally-friendly projects in developing countries in exchange for carbon credits that it can sell on the open market. Investors interested in learning more can view a research report by clicking here.

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Wal-Mart Stores (NYSE: WMT) and Target Corporation (NYSE: TGT) have always been at odds with eachother. One popular strategy was to pair trade the two stocks based on the economic environment. Wal-Mart, famous for its low prices, is a popular stock during an economic downturn as people tend to flock to their stores. Conversely, Target tends to attact the middle class far more effectively during an economic boom when they are willing to part with their money more easily.

Many investors using this strategy have been long on Wal-Mart while short on Target during the economic downturn and it has paid off handsomely. Wal-Mart shares have appreciated over 30% in 2008 while Target shares were down over 5% on the year not long ago. However, Target has recently begun to rebound as an end to the economic crisis seems within reach. As a result, investors are now questioning whether or not it is time to switch the play around and look at going long Target while shorting Wal-Mart.

The question now becomes: Is the economic crisis on its way to being solved? Well, the majority of the problems can be traced back to the housing market and many believe that's where a recovery is needed first. Foreclosures not only resulted in a rise in bankruptcies for consumers, but also put pressure on consumer credit. This credit is extremely important to maintaining consumer spending and helping retailers like Wal-Mart. So, is the housing market turning?

Recent Federal bailout packages are expected to give the housing market some breathing room while working to return things to normal. Rising defaults and foreclosures on home loans, spurred by declines in home values, are the cause of the collapse in price and tradeability of the mortgage-backed securities. A $700 billion bailout package put together by the government should help solve those issues by injecting liquidity into this system and encouraging lending once again.

A successful execution of this plan could help the Target/Wal-Mart trade switch, but until then, many investors are likely staying put with their current positions.

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Concord Camera Corporation (NDAQ: LENS) may soon be in trouble after a large shareholder expressed dissatisfaction regarding the company's response to his concerns. Everest Special Situations Funds have been petitioning the company to make key changes for some time now, but their calls have gone unheard. Now, the activist hedge fund is threatening to take its fight public through a proxy contest to replace the board of directors and unlock value itself.

Here's a copy of their September 11th letter to the board:

Dear Mr. Lampert:
 
As you know Everest Special Situations Fund L.P. (“we”) owns approximately 7.29% of the outstanding capital stock of Concord Camera Corp. (“Concord” or the “Company”).  During the past year, through multiple written letters, an in-person meeting and numerous telephone conference calls with management, we have expressed our deep concern over the future of the Company and provided our views on ways to maximize shareholder value.  Unfortunately, despite your assurance that our serious concerns were being promptly addressed in a meaningful way, it appears our concerns and suggestions have fallen on deaf ears.  The Company has not provided us with or implemented any substantive responses regarding the significant concerns we have raised, including:

• the Company’s disastrous operational performance, including 17 consecutive quarters of losses;
• the Chief Executive Officer’s excessive compensation;
• the Company’s significant holdings in illiquid auction rate securities and how it intends to liquidate these positions; and
• the inadequate response of the Special Committee of the Board as to why after 2 years it still has not suggested any strategic alternatives for the Company.
  

As we have repeatedly suggested, in order to maximize shareholder value, the Company should immediately begin a liquidation process and accept our offer to assist in this process.  For all the reasons listed above and in our other public letters, we have lost faith in the ability of the Company’s current Board and management to carry out a liquidation.  If the Company had any intention of liquidating, management should have already communicated with the Company’s clients in order to lead a prompt and orderly process which would maximize collection of the Company’s account receivables and help the Company and its clients plan ahead.  As management has not done so, shareholders can only reasonably draw two conclusions:

• management is looking to entrench itself and not pursue a liquidation; or
• management is not capable in carrying out a liquidation.
  

We demand that the Company immediately modify the Board of Directors composition to add representatives of the Company’s shareholders to assist with and accelerate a liquidation or sale process.
 
If the Company does not promptly meet our reasonable demand, we will not hesitate to enforce our rights as shareholders to seek Board representation or take any other actions which we deem appropriate.  Specifically, we intend to nominate a slate of directors with experience in liquidations and sales processes at the Company’s next annual meeting of shareholders and intend to take all necessary steps to maximize shareholder value immediately following the election of our slate.

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KHD Humboldt Wedag International Limited (NYSE: KHD) may have one of the strangest names on Wall Street, but it also represents one of the best values around. The industrial plant engineering and equipment supply company has been beaten down by the economic slowdown and now trades with a PE-to-Growth ratio of just 0.33. This indicates that KHD is substantially undervalued given its current share price, earnings per share, and earnings growth rates.

Many investors see KHD as an infrastructure play given its strong presence internationally. Over half of the company's $1.3 billion backlog comes from Russia, Eastern Europe, and Asia as their economies continue to grow. The company is also financially sound having reported an 88% increase in year-over-year profits and a doubling of its order intake. Combined, these factors make this company a definite growth play in addition to a value play.

KHD Humboldt Wedag International Ltd. is engaged in industrial plant engineering and equipment supply business and has a royalty interest in the Wabush iron ore mine. The Company's industrial plant engineering and equipment supply business focuses on services for the cement, coal and mineral processing industries. KHD Humboldt Wedag International supplies plant systems, as well as machinery and equipment worldwide for the manufacture of cement and the processing of coal and minerals, whether for new plants, redevelopments of existing plants or capacity increases for existing plants. The Company designs and provides equipment that produce clinker, cement, clean coal, and minerals such as copper and precious metals. The scope of services also includes feasibility studies, raw material testing, financing concepts, erection and commissioning, personnel training, and pre and post sales services.

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Goldman Sachs (NYSE: GS) shares have plunged the most ever after a government rescue plan for American International Group failed to ease credit concerns. Many attribute the movements to rumors and fears, but these same factors have arguably led to problems in the first place. The big fear in this case relates to the $62 trillion credit default swaps market where Goldman Sachs has become a large player. The concern is that insurers that wrote the swaps won't be able to make good on their contracts.

Credit default swaps are essentially insurance policies again a credit default - that is, the possibility that a company won't make good on its debts. The seller of the swap - or policy - gets a regular stream of premium income. In return, the seller of the swap agrees to pay the buyer if the company goes broke or stops paying its debts for some other reason. Interestingly, the market for swaps is estimated at $62 trillion compared to just $6 trillion in underlying bonds.

Companies like AIG provided these insurance policies on bonds and their troubles are causing concern that the policies won't be honored. Investment banks like Lehman Brothers and Goldman Sachs rely on these policies to balance the risk of the bond portfolio. The government's bailout of AIG has also caused rumors that some policies won't be honored or that there may be other delays in the issuance of these insurance policies that are now needed more than ever before.

As a result, shares of Goldman Sachs are trading lower despite an extremely positive earnings report in which it announced a sharp reduction in leveraged loans.

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Longs Drug Stores (NYSE: LDG) is finding itself under substantial pressure from shareholders to conduct a more comprehensive sale process after agreeing to be boughtout by CVS. Shareholders demanded that the company hire an independent advisor, solicit offers from all interested parties, and recommend the bets offer to the board and shareholders. These shareholders believe that the current $71.50 per share offer substantially undervalues the company given Walgreen's $75 per share bid.

Some shareholders, including Pershing Square, believe that the real estate value alone exceeds the price offered by CVS. The conservative valuation used by this hedge fund pegs the value at $2.9 billion or more and suggests that the company could sell for as much as $90 a share. Risk Metrics Group also recommended shareholders vote against the merger, citing concerns over Long's failure to disclose more information concerning its real estate portfolio.

Longs responded saying it would evaluate the offer by Walgreens but still recommended that shareholders accept the tender offer by CVS. The company had previously held talks with Walgreens, but they failed over price, according to SEC filings. The company also noted that Walgreens offer may be stuck with antitrust concerns. However, shareholders contend that the very fact this offer came in after CVS' tender means the process was badly flawed.

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American International Group Inc. (NYSE: AIG) shares fluxuated wildly throughout the day as investors speculated on the future of the insurance giant. Many experts believe that the firm is simply too large to fail as its securities are held by many hedge funds and other large players in the international markets. This led many to speculate that the Federal Reserve would rescue the firm if private investors failed; however, there are many other options also on the table keeping shares alive.

One popular theory is that Hank Greenburg, former CEO of AIG, may attempt to take control of the company through a proxy fight or buyout. The investors are also reportedly considering the acquisition of AIG's subsidiaries or making loans to the company. Many are aware that AIG was once Hank's baby before it was taken away and now destroyed- he may use this opportunity to retake control and attempt to save it. Indeed, the former executive already controls 11 percent of the bank.

Meanwhile, many experts are confident that the Federal Reserve will prove to be a backstop incase of any problems. CNBC reported that the Fed was considering providing financing and managed to help shares off of their lows of the day. However, the Fed itself could not provide any further comments on the matter. Others remain convinced that the Fed will not offer help after it jilted Lehman Brothers just yesterday.

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Longs Drug Stores Corp. (NYSE: LDG) was a stock that we featured about a month ago after billionaire investor Bill Ackman built up a timely stake through his Pershing Square Capital Management. The activist investor purchased a sizable stake shortly before CVS announced that it intended to acquire the firm sending shares sharply higher. Now, it appears that another drug store with deep pockets is interested in acquiring the company...

Walgreen Co. announced a rival bid over the weekend that came in at $75 per share, compared to CVS' offer of just $71.50 per share. Investors pushed shares as high as $76 per share today as hopes they hoped CVS would increase its own bid for the company. However, the Walgreen's deal could be mired in problems, according to some analysts. Most notably, federal antitrust regulators could get involved as Walgreen's stores are very close to Long's stores in several key markets in California.

That same real estate is likely what attracted many of these acquisition offers. In fact, Bill Ackman likely purchased his stake with the idea of selling the company's owned real estate and leasing it back to generate value. CVS' own estimates also show the substantial value held in the real estate. And finally, several shareholders have already balked at CVS' offer because they believe it underestimates this real estate.

So, what will happen from here? Well, shareholders are likely to continue their speculation and keep Long's shares above $76. A higher offer from CVS is about 50% likely while an eventual acquisition by CVS at a smaller $73 or so premium makes up a substantial additional possibility. However, it is likely that Walgreen's bid will fail due to regulatory concerns unless they promise to actually sell off the properties in these key areas and divest them completely...

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NN, Inc. (NDAQ: NNBR) shares surged higher after the company announced a new $20 million share buyback program. The program would result in a little less than a 10% reduction in the number of shares on the open market. Investors are hoping that this reduction will help boost the company's earnings per share number as less shares outstanding increases the equation. This should then encourage investors to revalue the stock at a higher multiple.

Buying back stock is good for several reasons. First, it uses up excess cash on the balance sheet and provides a better return than the money market. Secondly, buying back stock can increase the company's return on equity along with other financial ratios as less shares outstanding increases the fraction in many cases. And finally, buying back stock has a psychological effect on the market in that it signals that the firm itself believes that its shares are undervalued.

NN, Inc. operates in three segments: the metal bearing components segment, the plastic and rubber components segment, and the precision metal components segment. Within the metal bearing components segment, the Company manufactures and supplies high-precision bearing components, consisting of balls, cylindrical rollers, tapered rollers and metal retainers, for bearing manufacturers on a global basis.

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The Chinese biotechnology industry is quickly growing at 20% to 30% annually into a an estimated $8.5 billion industry by 2010. The Chinese government has facilitated much of this growth by making biotechnology and drug discovery a top priority in the 11th 5 Year Plan (2006-2010) and making annual contributions of $600 million to advance industry development along with granting incentives such as tax exemptions. Meanwhile, the Chinese pharmaceutical industry is expected to be the 5th largest in the world by 2010.

Sinobiomed Inc. (OTC-BB: SOBM) is a leading Chinese developer of genetically engineered recombinant protein drugs and vaccines. Currently, the company has 10 products approved or in development: threee on the market, one awaiting approval, four in clinical trials, and three in research and development. The company's drugs focus on responding to a wide range of diseases, including malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration.

Recombinant protein and enzyme drugs, like those produced by Sinobiomed, are valued for their safety and efficacy. Through partnerships with key research hospitals and institutes, Sinobiomed has build a substantial portfolio of these drugs. Additionally,  Sinobiomed has the ability to manufacture a large quantity of bio-products at extremely low costs through a patented high-yield production process that enhances bioactivity and encourages the highest levels of purity in the drugs.

Investors looking for more information on this industry as well as Sinobiomed can check out their website at Sinobiomed.com. The company's stock is listed on the OTC-BB exchange under the ticker symbol SOBM.

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Joy Global Inc. (NDAQ: JOYG) shares surged higher today after the company announced that it would buyback an additional $1 billion in additional shares. The move is quite significant given the fact that the company only has a $5.31 billion market cap - meaning that it would be repurchasing nearly 20% of its shares. The theory is that this reduction in shares outstanding would increase the earnings per share number and force investors to re-evaluate the firm's multiple - presumably higher.

Buying back stock is good for several reasons. First, it uses up excess cash on the balance sheet and provides a better return than the money market. Secondly, buying back stock can increase the company's return on equity along with other financial ratios as less shares outstanding increases the fraction in many cases. And finally, buying back stock has a psychological effect on the market in that it signals that the firm itself believes that its shares are undervalued.

Joy Global manufactures and services mining equipment for the extraction of coal and other minerals and ores. Its equipment is used in mining regions to mine coal, copper, iron ore, oil sands and other minerals. Sales of original mining equipment for the mining industry, as a class of products, accounted for 37% of Joy's consolidated sales for fiscal year ended October 26, 2007. Shares of the company rose $3.47, or 8.38%, to $48.74 per share in mid-day trading.

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Penn National Gaming (NDAQ: PENN) shares moved higher today followed by their call options after rumors surfaced that the company may be on the block. Call options on the stock were particularly volatile as the company was scheduled to receive $1.4 billion in compensation from FIG and Centerbridge Partners after canceling their $67 per share buyout offer.

Last quarter, Penn National posted lower profits citing difficult economic conditions. Second quarter profits came in at $37 million, or 42 cents per share, compared to $38.3 million, or 43 cents a share, a year earlier. The lower results are likely due to a decrease in traffic to casinos thanks to a general slowdown in consumer spending. This has made casino stocks relatively cheap and could spur some M&A activity.

Penn National Gaming is a diversified, multi-jurisdictional owner and operator of gaming properties, as well as horse racetracks and associated off-track wagering facilities (OTWs). It owns or operates 19 gaming properties located in Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario.

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Many investors may not be aware that there are two basic types of pharmaceutical products on the market. Chemical Pharmaceuticals are the types that people usually see created from basic chemical compounds. Biopharmaceuticals are created from proteins produced by living organisms that have medical or diagnostic uses. Generally, these are complex macromolecules derived from recombinant DNA technology, cell fusion, or processes involving genetic manipulation.

These studies are no longer the work of science fiction! Protein-based therapeutics is the newest class of compounds being developed in the drug industry, with an estimated 50 coming to market over the next few years, 140 already approved and an additional 500 in clinical trials. These proteins have been found to outperform their chemical peers when solving complex problems. After all, it is DNA that controls the body's actions- it's simply a matter of correcting the problems in the double-helix.

Recombinant protein drugs have three key advantages over traditional chemical pharmaceuticals: safety, cost and efficacy. Since the protein drugs are built from human components, they have a built in safety factor, while the process for developing these drugs is extremely quality controlled. The fact that they drugs are produced from human components also reduces the cost and increases the efficacy of the process. All in all, there are many key advantages from a financial prospective.

China is currently the largest player in the biopharmaceutical industry. Currently, the country produces eight of the world's top 10 genetically engineered drugs or vaccines. Revenues from biopharmaceuticals in China are expected to grow from $4.5 billion in 2005 at a rate of 20% to 30% annually over the next couple decades. The factors influencing this growth are a talented, but cheap, labor pool, the development of a FDA equivalent (SFDA), and the governments efforts to expand IP rights.

So, how can you benefit as an investor? One of the fastest growing and most innovative companies in this sector is a company called Sinobiomed Inc. (OTC: SOBM). The company uses human proteins, or molecules that mimic or block them, to find new ways to treat disease. The process involves removing the DNA from one organism and placing it into a new organism that reproduces to make proteins of potential therapeutic value.

Drugs developed from this process can help solve many of the world's problems while also helping shareholders to profit handsomely. The potential uses for these proteins include: Hepatitis B&C, surgical bleeding, diabetic ulcers and burns, malaria, cancer, rheumatoid arthritis, blood cell regeneration following radio-chemotherapy for malignant tumors, acute liver disease, stroke, blood clots and thrombosis, acute pancreatitis and much more.

Investors looking for more information on this industry as well as Sinobiomed can check out their website at Sinobiomed.com. The company's stock is listed on the OTC-BB exchange under the ticker symbol SOBM.

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Visa Inc. (NYSE: V) shares might not be such a bad deal after the company revealed that it was considering returning cash to shareholders. The credit card company noted at the Lehman Brothers Global Financial Services Conference this morning that it fully expects to return excess cash to shareholders through dividends and repurchases. The company said that such repurchases would be initiated as early as the first quarter of 2009.

Shares of Visa have been beaten off of their 52-week highs despite a strong rise in earnings last quarter. The firm has since raised the fees on transactions using its cards as investors grow concerned about a slowing economy. However, strong positioning internationally combined with an increasing number of consumers using credit cards could help the firm overcome these concerns and profit handsomely despite a declining economic environment.

Unlike rival American Express, Visa does not have to worry about covering losses associated with its credit cards. Rather, it is the member banks that take on all of the lending risk while Visa steps back and collects fees each time its card is used. As a result, the only thing that could drop this stock is a decline in credit card usage. Fortunately, this is a tough environment for many consumers and they are in increasing need of small loans via credit card.

So, is Visa a buy right now? Well, the rise in transaction fees in August should help generate more cash. The company plans on using this cash to prop up its share price by repurchasing shares. Historically, this has helped to reduce the number of outstanding shares, boost its earnings per share, and force a revaluation of its earnings multiple. Ideally, this results in a higher share price for investors as they again see the strong growth in this segment.

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Google Inc. (NDAQ: GOOG) released the beta version of its Chrome web browser last week that will compete directly with market leader Internet Explorer 7, FireFox 3, and Safari 3 browsers. The search giant's latest project is seen by many reviewers as being simpler, faster, and less prone to crashing. The question now is: How will this new browser affect the search giant's bottom line.

When it comes to numbers, Google makes the lionshare of its profits from search advertising. Its Google AdWords program generates more than 95% of the company's revenues, helped by peer publishing via Google AdSense. Moreover, the vast majority of Google's side projects not only lose money, but also do not generate any substantial website traffic.

Many experts see Chrome as not only a web browser, but an effort to take control of Windows users via their most-used application. FireFox's quick market share move against Internet Explorer has already shown that Microsoft can be beaten. Now, with a huge public corporation behind it, many are hoping that Google can do more to take further market share.

So, while the new web browser will do little to impact Google's bottom line right now, it may help them further solidify their lead in search while also moving users out of Microsoft's arms and into theirs. This makes Chrome a new technology that is definitely worth a second look- both for investors and internet users.

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Many investors are losing money in today's market, but at least one appears to be minting it. William Ackman's well-timed bet on Longs Drug Stores (NYSE: LDG) may have netted him several hundred million in mere weeks, but the famous activist is now questioning whether it deserves more. Pershing Square, which he manages, threatened to vote against the deal amid concerns that CVS may not be paying full price for Long's real estate assets.

Real estate is the crown jewel in CVS' deal to acquire Long's. Newly public reports show that CVS put a "conservative" value of $1 billion on 200 Long's retail stores, three distribution centers, and three office buildings. Further, CVS noted that it intends to make money off the assets by either selling them or generating cash through sale-leaseback transactions. Several investors have threatened to vote against the merger by refusing to tender their shares.

The real estate story may also explain why Ackman was interested in the first place. One of the activist investors favorite strategies is to push for value to be unlocked through the same transactions mentioned by CVS above. Target, for example, is one company he owns where he sees the real estate as being worth as much as the entire company if not more. Now that CVS has beat him to the punch, he and other investors are likely to put up a fight.

Arbitrage investors - those that bet on takeovers - have already begun to bet that CVS will increase its bid as shares are trading above the takeover premium. The other options are the CVS will extend the timetable of its tender offer or walk away from the deal altogether. The law firm behind the complaint, BLB&G, has a history with CVS too. The law firm helped force the chain to pay an additional $7.50 per share in its acquisition of Caremark in 2006.

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PetMed Express, Inc. (PETS)

Yahoo Inc. (NDAQ: YHOO) shareholders are in a world of hurt these days- how would a $33/share offer look now? This question has some people asking whether or not it is time for Microsoft Corporation (NDAQ: MSFT) to come back to the table with its $24/share offer. Microsoft even has some help on the board in the form of an activist shareholder - Carl Icahn - who now has a direct hand in any decision to sell the giant to Microsoft.

Carl Icahn has already talked of selling Yahoo's search business to Microsoft as part of a complex alliance. Under the plan, Yahoo would sell its search business for $1 billion in cash and Microsoft would also become the exclusive search provider on all Yahoo sites for a term of five years. In return, Microsoft would guarantee Yahoo $2.3 billion per year as compensation for search queries generated from Yahoo properties so long as Yahoo meets certain traffic requirements.

The move comes after Microsoft had already broke off merger talks with Yahoo after its board rejected a $33 per share buyout bid, which is about double the current share price. Initially, Yahoo also rejected the idea of Icahn's plan, but quickly had a change of heart when the activist investor launched a proxy contest. To satisfy the dissident investor, he was given a seat on the board and an ability to push the agenda that so many area awaiting now.

What happens now remains to be seen, but perhaps Microsoft will see new opportunity...

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UST Inc. (NYSE: UST) shares are up nearly 23% today on reports that Altria Group (NYSE: MO) is interested in the tobacco company. Yesterday, shares spiked mid-day after a flurry of short-term call option activity ignited takeover rumors. Nearly 12,000 call options were purchased at the October $60 strike by mid-day at around $1.10 per contract, which means someone made a short-term $1.3 million bet. These options are now trading $6.93 per contact, which means that yesterday's speculations are now much richer!

Trader(s) who purchased the $1.3 million stake by mid-day yesterday - before any news at all hit the market - now have options worth some $8.3 million! Not a bad return on investment for a substantial one-day bet on no new news. Now many investors are wondering, rightfully so, who made these trades and if they were on the level. After all, it's not every day that someone can make an off-the-wall bet on out-of-the-money options in the near-term and make a 600% return on investment in a day!

Unfortunately, these types of events are not so uncommon in the stock market...

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Sara Lee Corporation (NYSE: SLE) may be experience a shakeup after the leader of an activist hedge fund gained a seat on the board. Jeffrey Ubben or ValueAct Capital was installed late last week onto the board of Downers Grove-based Sara Lee. Last winter, the activist hedge fund bought up a 5 percent stake in the company amid its multiyear turnaround effort.

Activist investors like ValueAct Capital typically buy into situations where they preceive value is being obstructed by something that they can fix. Usually, this object is bad management, poor capital structure, or other similar factors. While most activists are considered quite determined and even bordering on mean or evil.

However, ValueAct Capital has taken a completely different tone in this case. The hedge fund said at the time of its purchase that it had no plans to push for any significant strategic changes at Sara Lee and was comfortable with the firm's direction. Regardless, many investors are hoping that the hedge fund will work to help management act more quickly to unlock value.

Christopher Growe of Stifel Nicolaus isn't expecting a major change in the company's direction. The analyst insists that ValueAct has historically worked in unison with management to turn a company's performance around. He added that the presence of ValueAct on the board will also keep the transformation of the business moving along and could add a sense of urgency.

Sara Lee is a global manufacturer and marketer of brand-name products for consumers worldwide focused primarily on meats, baking, beverage and household products categories. The company's operations are organized around six business segments with its significant customers including mass retailers and supermarket chains in the USA and EU.

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Liberty Media Corporation (NDAQ: LMDIA) announced that its board is taking steps to convert the tracking stock for Liberty Entertainment into shares in a subsidiary that would hold the unit's assets. In effect, Liberty Media Corporation will spin-off Liberty Entertainment into its own independent public company. This division includes DirecTV Group, Starz Entertainment, FUN Technology, Liberty Sports Holdings, GSN and Wild Blue Communications.

The current plant would put 50% of DirecTV; 100% of Starz, FUN and Liberty Sports; 50% of GSN; and 37% of WildBlue into the new subsidiary. Liberty Entertainment would also be responsible for about $2 billion in debt, which was incurred when the company acquired DirecTV from New Corporation in April. The move will be tax free for existing holders of the tracking stock and will result in a new company called Liberty Entertainment Inc.

Spin-offs like this one can represent opportunity for investors willing to get their hands dirty. Successful spin-offs occur parent companies are looking to unload debt onto a new public entity while divesting their non-core assets. Liberty is a good example in that they are unloading their debt, but they are only giving up a portion of their stake in their entertainment subsidiaries. This means that the new subsidiary will not have complete control over the future of some divisions.

Successful spin-offs also rely on well-incentivized management to take the reins and work to unlock value in the divisions. Unfortunately, Liberty Entertainment will not only lack the control over key divisions, but will also be run by the same management as the parent. Combined, these factors mean that management may be less likely to take action to unlock value or take dramatic measures to improve the businesses.

In the end, Liberty Entertainment's spin-off does not share many of the characteristics that make spin-offs attractive for investors. The only remaining benefit is the fact that investors can assign the entertainment division with a higher valuation given the pure-play nature.

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Hill-Rom Holdings, Inc. (NYSE: HRC) shares could be headed higher after a popular hedge fund disclosed a large stake. Breeden Capital Management disclosed a 5.25% stake in the provider of medical technologies and equipment, which is up from its stake disclosed in the second quarter. The language in the Schedule 13D filing with the SEC was fairly standard, however, reserving the right to contact management but detailing very little.

Shares of Hill-Rom are up 6.5% for the year-to-date after spinning off from parent Hillenbrand Industries. During its last quarter, Hill-Rom reported better-than-expected earnings and raised its full-year outlook. Fundamentally, the stock is trading with a PEG ratio of 1.56, which implies that it is valued higher than its peers even considering its higher growth. On average, analysts have a "hold" rating on the stock with a 12-month price target of $33 per share.

Breeden Capital Management is known as an activist hedge fund among investors and is led by Richard Breeden - a former Chairman of the Securities and Exchange Commission (SEC). The hedge fund is no stranger to activism and many are speculating that it may be interested in taking some action in this holding. Others suggest that they may simply be interested in the upside that often results from a company spun off from a parent. Regardless, their involvement makes the stock worth watching.

Hill-Rom Holdings, Inc., formerly Hillenbrand Industries, Inc., is the manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and health information technology solutions. Hill-Rom's product and service offerings are used by healthcare providers across the healthcare continuum in hospitals, extended care facilities and home care settings.

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Aladdin Knowledge Systems Ltd. (NDAQ: ALDN) shares could be worth $13 a share if one activist shareholder gets their way. Jasmine Holdco LLC, which owns a substantial stake in the company, nominated its own slate of directors to conduct a fair process to maximize shareholder value and provide better corporate governance and oversight for the company. The hedge fund also exercised their right to call a special shareholders meeting within the next two months, made possible under Israeli law.

Jasmine Holdco previous announced on August 21st that it submitted a proposal for the company to acquire all outstanding shares of Aladdin by way of a merger transaction for $13 per share in cash. This offer represents a 50% premium over Aladdin's stock price prior to making public market purchases and a 35% premium over its initial 13D filing on August 7th. The letter also described an alternate proposal to acquire Aladdin's DRM business for $125 million to $135 million in cash.

"Repeated attempts to engage Aladdin in constructive discussions about a transaction to combine part or all of Aladdin with SafeNet have produced no results. Aladdin has rejected all of our proposals and has offered no basis for their conclusions and no strategic plan or valuation approach that would result in greater shareholder value than either of the two Jasmine proposals," said David Fisherman on behalf of Jasmine.

"Jasmine is left with no choice but to call an Extraordinary General Meeting of Shareholders. The current Board and management team do not appear to have a genuine interest in exploring Jasmine’s proposals or other value-maximizing avenues for its shareholders. We are eager to continue discussions with our fellow shareholders regarding the state of the company and look forward to joining them in setting Aladdin on a path to maximize shareholder value."

SafeNet is a global leader in information security. Founded 25 years ago, the company provides complete security utilizing its encryption technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. UBS, Nokia, Fujitsu, Hitachi, Bank of America, Adobe, Cisco, Microsoft, Samsung, Texas Instruments, the U.S. Departments of Defense and Homeland Security, the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. In 2007, SafeNet was acquired by Vector Capital, a $2 billion private equity firm specializing in the technology sector. For more information, visit www.safenet-inc.com.

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