S&P Analyst Thomas Smith says SELL Apple:

a. guidance for gross margin of 31.5% for September-quarter and 30% for fiscal year 2009 (September) which, even if understated, indicates a weakening trend.

b. Target price to $140

S&P Analyst Stuart Plesser recommends SELLING WACHOVIA:

a.  question of whether WB will ultimately need to raise additional capital and dilute shareholders.

b. While not convinced WB won’t have to raise capital,  today’s dividend cut and the possible sale of non-core assets will sustain WB over the next quarter.

c. target price $12

S&P Analyst Herman Saftlas Recommends SELLING MERCK:

a. Despite a 5% lift from forex, sales fell 1%, with declines in Gardasil, Singulair and Fosamax.

b. MRK suspends 2008 and long-term guidance amid uncertainties related to the recent negative SEAS trial results on the key Vytorin/Zetia joint venture franchise.

c. with most of its growth drivers impaired, MRK faces a challenging future over the next several years.

d. target price $29

Track S&P picks at:

http://trackthepros.com/categories.php?category_id=382