Business Week’s Gene Marcial, Inside Wall Street columnist, stock picks in 8/4 issue:

1. BlackRock, the largest publicly traded U.S. asset manager

a. Better-than-expected second-quarter results gave stock a boost. “It may well have risen to a level from which BlackRock could gain further upside momentum,” says Michael Hecht of Banc of America Securities (BAC).

b.  Merrill Lynch (MER), which owns 49% of the stock, agreed not to sell its stake. Had Merrill Lynch decided otherwise, BlackRock’s stock might have crashed.

c. “Best-in-class products and broad mix of assets under management.” Those assets have grown to $1.4 trillion from 2007’s $1.3 trillion.

2. Martha Stewart Living Omnimedia

2.  On July 8, announced a pact with the Walmartr to sell craft products such as stationery supplies, jewelry-making kits, and wedding items like ring pillows; could lead to a broader agreement.

b. incremental yearly earnings before taxes and interest of at least $1.5 million

3. Emisphere Technologies

a. Roche’s Holding (RHHBY) bid to buy all of Genentech (DNA) has reignited investor interest in U.S. biotechs, especially those that are already partnered with foreign drugmakers.

b. company’s Eligen technology, which allows more drugs to be taken by mouth, is being tested by Novartis  for its drug for osteoporosis and osteoarthritis.

c. In June, Novo Nordisk, a major insulin producer, teamed up with Emisphere to develop an oral formulation of Novo’s diabetes medicines. Novo will pay as much as $87 million for Emisphere’s technology.

d.  Emisphere’s Eligen has the potential for wider applications

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