With the deal, Jones Lang would be entrusted to effectively manage the day-to-day tasks related to the operations across SunTrust’s facilities. SunTrust operates an extensive branch and ATM network throughout Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and Washington, DC. Jones Lang’s leading position in property and corporate facility management services would enable it to improve the operational efficiency of SunTrust.

On the other hand, the deal strengthens Jones Lang’s position in the market and offers it an expanded role in the operations of one of the largest banking organizations of the country. Jones Lang is a leading full-service real estate firm that provides corporate, financial, and investment management services. The company caters to corporations and other real estate owners, users, and investors worldwide.

Currently, Jones Lang provides property and corporate management services across a worldwide portfolio of 1.4 billion square feet. Its investment management division, LaSalle Investment Management is one of the largest and most diverse companies in the real estate market and has over $46 billion of assets under management.

The DC/DC controller architecture integrates linear and switch mode functionalities within a single device, reducing component and pint count, and making significant improvements in terms of complexity and cost. The device is, therefore, capable of handling lines carrying both light and heavy power loads. The output voltage is even, affording enhanced efficiency even when serving a heavy load.

The company is by no means new to the field. It is a specialist in power management ICs and security components, with 11,830 patents to its credit and another 14,000 pending. This technological edge has enabled the company to weather competition from more established rivals such as Linear Technology (LLTC), Maxim Integrated Products (MXIM) and Texas Instruments (TXN). O2Micro has thus carved out a position for itself in the computing, consumer, industrial and communications markets.

Company Description

Strayer Education, an education services holding company, owns Strayer University and other assets. The company's mission is to make higher education achievable and convenient for working adults in today's economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 45,000 working adult students at 65 campuses in 14 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

Rising Forecasts

The company, which has outperformed the market over the pas year, is seeing higher estimate revisions on a record first quarter.

Analysts are calling for second-quarter earnings of $1.97 per share, up from $1.81 over the past 60 days.

For the full year, analysts boosted earnings estimates to $7.27 per share from $6.99 over the past 60 days.

For 2010, analysts see earnings of $8.87 per share, versus the 2 months-ago projections of $8.60.

Record Results

The company posted record results in the first quarter. Revenues jumped 28% year-over-year, while earnings per share of $2.08 came in 6% ahead of the consensus estimate and topped the year-prior $1.64. Strayer's Spring 2009 total enrollments were up 22%, and the number for new students increased by 26%.

The company said it continues to expand its geographic footprint with the successful opening of its first two campuses in Ohio, located in Cincinnati and Columbus. Strayer also noted that, as of March 30, its balance sheet showed cash equivalents and marketable securities of $84.0 million with no debt.

The second-quarter report report is scheduled for release on July 16, 2009.

Favorable Industry Comparisons

Strayer boasts a return of equity (ROE) of 51%, soaring past the industry average of 14%. Strayer's net profit margin of 20% is ahead of the industry average of 10%. The company also rewards shareholders with an industry-leading dividend yield of 1%. Zacks Investment Research

Chicago, IL - June 15, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Adobe Systems (ADBE), Best Buy (BBY), Carnival (CCL), FedEx (FDX) and J.M. Smucker (SJM). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

We will see initial second-quarter numbers with Adobe Systems (ADBE), Best Buy (BBY), Carnival (CCL), FedEx (FDX) and J.M. Smucker (SJM) reporting this week. Notably missing from the group are the investment bankers, the surviving members of which have changed to traditional calendar quarters.

Though there are five S&P 500 companies reporting, the earnings calendar is pretty light. Just 23 companies are confirmed to report.

Conversely, the economic calendar is fairly busy. We'll see the producer and consumer price indexes, housing data and the Phili Fed survey.

• Monday: Empire State manufacturing index, NAHB housing index
• Tuesday: May housing starts and building permits, May PPI, May industrial production and capacity utilization
• Wednesday: May CPI, weekly crude inventories
• Thursday: May Leading Indicators, Phili Fed survey, weekly initial jobless claims

Fed Chairman Ben Bernanke will speak at a financial literacy summit in Washington, D.C. on Wednesday morning. Also speaking this week are Chicago Fed President Charles Evans, Governor Daniel K. Tarullo, Governor Elizabeth Duke and Governor Kevin Warsh.

On Monday morning, Evans will talk about the financial crisis with the Executives Club of Chicago Joint Committee. Also on Monday morning, Tarullo will appearing at a bankers' convention on Monday morning to discuss risk regulation. That evening, Duke will lecture about the Fed's response to the financial crisis at the Women in Housing and Finance Annual Meeting.

Warsh will speak to a different bankers' convention on Tuesday. He will discuss economic policy and the financial markets.

Friday is a quadruple witching day, meaning option and futures contracts will expire. This could lead to higher volatility.

What should be interesting to see is whether we get some end-of-quarter window dressing by fund managers. Many have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This raises the possibility that we could see managers buying "good" stocks to make their portfolio holdings look better.

Keep an eye on commodities and bonds. Commodities have been very strong and treasury yields may come down after having just set short-term highs.

Companies That Could Issue Positive Earnings Surprises

Adobe Systems (ADBE) has delivered positive surprises during 7 of the last 9 quarters. (Its fiscal first-quarter numbers matched expectations.) Though the consensus earnings estimate is unchanged at 28 cents per share, the most accurate estimate is higher at 30 cents per share. This suggests another good report could be forthcoming. Adobe is scheduled to report on Tuesday, Jun 16, after the close of trading.

Best Buy (BBY) has benefited from the demise of Circuit City, having topped expectations for 2 consecutive quarters. Three of the covering brokerage analysts think the company may deliver another upside surprise and have raised their fiscal first-quarter estimates as a result. These revisions have led to a most accurate estimate of 34 cents per share, which is a penny better than the consensus earnings estimate. Best Buy is scheduled to report on Tuesday, Jun 16, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

During the past few weeks, 2 analysts have cut their fiscal fourth-quarter profit forecasts on FedEx (FDX). The negative revisions have resulted in a most accurate estimate of 47 cents per share, which is 5 cents below the fiscal fourth-quarter consensus earnings estimate. FDX has missed twice during the past 4 quarters. FedEx is scheduled to report on Wednesday, Jun 17, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=4988.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=3568.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

Though there are five S&P 500 companies reporting, the earnings calendar is pretty light. Just 23 companies are confirmed to report.

Conversely, the economic calendar is fairly busy. We'll see the producer and consumer price indexes, housing data and the Phili Fed survey.

• Monday: Empire State manufacturing index, NAHB housing index
• Tuesday: May housing starts and building permits, May PPI, May industrial production and capacity utilization
• Wednesday: May CPI, weekly crude inventories
• Thursday: May Leading Indicators, Phili Fed survey, weekly initial jobless claims

Fed Chairman Ben Bernanke will speak at a financial literacy summit in Washington, D.C. on Wednesday morning. Also speaking this week are Chicago Fed President Charles Evans, Governor Daniel K. Tarullo, Governor Elizabeth Duke and Governor Kevin Warsh.

On Monday morning, Evans will talk about the financial crisis with the Executives Club of Chicago Joint Committee. Also on Monday morning, Tarullo will appearing at a bankers' convention on Monday morning to discuss risk regulation. That evening, Duke will lecture about the Fed's response to the financial crisis at the Women in Housing and Finance Annual Meeting.

Warsh will speak to a different bankers' convention on Tuesday. He will discuss economic policy and the financial markets.

Friday is a quadruple witching day, meaning option and futures contracts will expire. This could lead to higher volatility.

What should be interesting to see is whether we get some end-of-quarter window dressing by fund managers. Many have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This raises the possibility that we could see managers buying "good" stocks to make their portfolio holdings look better.

Keep an eye on commodities and bonds. Commodities have been very strong and treasury yields may come down after having just set short-term highs.

Companies That Could Issue Positive Earnings Surprises

Adobe Systems (ADBE) has delivered positive surprises during 7 of the last 9 quarters. (Its fiscal first-quarter numbers matched expectations.) Though the consensus earnings estimate is unchanged at 28 cents per share, the most accurate estimate is higher at 30 cents per share. This suggests another good report could be forthcoming. Adobe is scheduled to report on Tuesday, Jun 16, after the close of trading.

Best Buy (BBY) has benefited from the demise of Circuit City, having topped expectations for 2 consecutive quarters. Three of the covering brokerage analysts think the company may deliver another upside surprise and have raised their fiscal first-quarter estimates as a result. These revisions have led to a most accurate estimate of 34 cents per share, which is a penny better than the consensus earnings estimate. Best Buy is scheduled to report on Tuesday, Jun 16, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

During the past few weeks, 2 analysts have cut their fiscal fourth-quarter profit forecasts on FedEx (FDX). The negative revisions have resulted in a most accurate estimate of 47 cents per share, which is 5 cents below the fiscal fourth-quarter consensus earnings estimate. FDX has missed twice during the past 4 quarters. FedEx is scheduled to report on Wednesday, Jun 17, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Jun 15 - 19¹. Prices are as of Thursday's, Jun 11, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Caseys Gen Strs	CASY	$0.36	$0.28	47.4%	6/15	AMC	$24.92
Majesco Entmnt	COOL	$0.00	N/A	200.0%	6/15	N/A	$2.06
Capstone Turbin	CPST	($0.06)	($0.07)	(20.0%)	6/15	AMC	$1.32
Casella Waste	CWST	($0.06)	($0.18)	0.0%	6/15	N/A	$2.60
La-Z-Boy Inc	LZB	($0.11)	$0.03	(110.0%)	6/15	AMC	$3.63
Synutra Intl	SYUT	($0.21)	$0.36	N/A	6/15	BTO	$11.35
Adobe Systems	ADBE	$0.28	$0.43	0.0%	6/16	AMC	$30.40
Best Buy	BBY	$0.33	$0.43	14.2%	6/16	BTO	$37.23
Factset Resh	FDS	$0.73	$0.65	1.4%	6/16	BTO	$51.94
Smithfield Food	SFD	($0.53)	$0.01	44.4%	6/16	BTO	$11.82
Actuant Corp	ATU	$0.07	$0.56	(35.7%)	6/17	BTO	$13.56
Clarcor Inc	CLC	$0.38	$0.48	(43.3%)	6/17	AMC	$30.17
Fedex Corp	FDX	$0.52	$1.45	(34.0%)	6/17	BTO	$56.16
Ihs Inc-A	IHS	$0.43	$0.37	4.9%	6/17	AMC	$50.06
Somanetics Corp	SMTS	$0.14	$0.21	11.1%	6/17	BTO	$17.24
Carnival Corp	CCL	$0.30	$0.49	73.7%	6/18	BTO	$23.73
Wiley (John) A	JW.A	$0.44	$0.49	(18.6%)	6/18	BTO	$34.59
Progress Softwa	PRGS	$0.31	$0.33	(6.5%)	6/18	BTO	$23.22
Research In Mot	RIMM	$0.93	$0.84	7.1%	6/18	AMC	$85.44
Smucker Jm	SJM	$0.61	$0.73	2.3%	6/18	BTO	$43.78
Smith & Wesson	SWHC	$0.10	$0.08	150.0%	6/18	AMC	$5.00
Winnebago	WGO	($0.27)	($0.20)	-16.13%	6/18	BTO	$7.33
Carmax Gp (Cc)	KMX	$0.05	$0.15	1600.0%	6/19	BTO	$13.59

BTO = Before The Market Open, AMC = After The Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

Zacks Investment Research

Chicago, IL - June 8, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes National Semiconductor (NSM) and The Talbots Inc. (TLB). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

S&P 500 members Brown Forman (BF.B), National Semiconductor (NSM) and Pall Corporation (PLL) headline what will be a very light earnings calendar. Only 37 companies are confirmed to report.

On the economic front, the Fed will release its periodic Beige Book on Wednesday afternoon. The next morning we will get May retail sales numbers from the Commerce Department.

• Tuesday: April wholesale inventories
• Wednesday: Fed Beige Book, April trade deficit, May treasury budget, weekly crude inventories
• Thursday: May retail sales, weekly initial jobless claims
• Friday: Initial June University of Michigan consumer confidence, May import and export prices

Three Fed officials are scheduled to speak. Governor Daniel Tarullo will talk about financial regulation at the Peterson Institute for International Economics in Washington, D.C. on Tuesday. On Wednesday, Governor Elizabeth Duke will deliver a lunchtime speech about consumer protection in Cleveland. Finally, Atlanta Fed Reserve President Dennis Lockhart will talk about the economy at a conference in Atlanta on Thursday.

The smartphone market will be in focus.

Palm's (PALM) next generation phone, the Pre, goes on sale tomorrow (Jun 6). Expect to hear some discussion about sales and initial reaction by customers.

Competitor Apple (AAPL) is expected to release details about a new iPhone. A software developers conference starts on Monday and there is speculation that Steve Jobs will be the one introducing the new mobile device.

The markets are stuck in a trading range. Given the light amount of data, there doesn't seem be a reason to think that things will change this week.

This said, keep an eye on Wednesday and Thursday, however. The combination of the Beige Book, speeches from Fed officials, oil inventories and a 10-year treasury auction (Wednesday at 1 p.m.) could get some traders to be more active.

Companies That Could Issue Positive Earnings Surprises

Fiscal-fourth quarter estimates for National Semiconductor (NSM) have been gradually improving. The current consensus estimate, which calls for a loss of 44 cents per share, is 3 cents better than the average forecast of a month ago. The most accurate estimate is slightly more bullish and calls for a loss of 42 cents per share. Though NSM has topped expectations twice in the past 4 quarters, it has also missed twice, so this is a risky call. National Semiconductor is scheduled to report on Thursday, Jun 11, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

The Talbots Inc. (TLB) has not only disappointed investors for 2 consecutive quarters, but it missed estimates by wide margins. Brokerage analysts are bracing for a first-quarter loss of 49 cents per share, but the most accurate estimate suggests the retailer could post a wider loss of 52 cents per share. Talbots is scheduled to report on Tuesday, Jun 9, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Want to turn earnings surprises into quick profits? Learn how by visiting http://at.zacks.com/?id=3206.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 82% annually (+2% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=4988.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=3568.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

On the economic front, the Fed will release its periodic Beige Book on Wednesday afternoon. The next morning we will get May retail sales numbers from the Commerce Department.

• Tuesday: April wholesale inventories
• Wednesday: Fed Beige Book, April trade deficit, May treasury budget, weekly crude inventories
• Thursday: May retail sales, weekly initial jobless claims
• Friday: Initial June University of Michigan consumer confidence, May import and export prices

Three Fed officials are scheduled to speak. Governor Daniel Tarullo will talk about financial regulation at the Peterson Institute for International Economics in Washington, D.C. on Tuesday. On Wednesday, Governor Elizabeth Duke will deliver a lunchtime speech about consumer protection in Cleveland. Finally, Atlanta Fed Reserve President Dennis Lockhart will talk about the economy at a conference in Atlanta on Thursday.

The smartphone market will be in focus.

Palm's (PALM) next generation phone, the Pre, goes on sale tomorrow (Jun 6). Expect to hear some discussion about sales and initial reaction by customers.

Competitor Apple (AAPL) is expected to release details about a new iPhone. A software developers conference starts on Monday and there is speculation that Steve Jobs will be the one introducing the new mobile device.

The markets are stuck in a trading range. Given the light amount of data, there doesn't seem be a reason to think that things will change this week.

This said, keep an eye on Wednesday and Thursday, however. The combination of the Beige Book, speeches from Fed officials, oil inventories and a 10-year treasury auction (Wednesday at 1 p.m.) could get some traders to be more active.

Companies That Could Issue Positive Earnings Surprises

Fiscal-fourth quarter estimates for National Semiconductor (NSM) have been gradually improving. The current consensus estimate, which calls for a loss of 44 cents per share, is 3 cents better than the average forecast of a month ago. The most accurate estimate is slightly more bullish and calls for a loss of 42 cents per share. Though NSM has topped expectations twice in the past 4 quarters, it has also missed twice, so this is a risky call. National Semiconductor is scheduled to report on Thursday, Jun 11, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

The Talbots Inc. (TLB) has not only disappointed investors for 2 consecutive quarters, but it missed estimates by wide margins. Brokerage analysts are bracing for a first-quarter loss of 49 cents per share, but the most accurate estimate suggests the retailer could post a wider loss of 52 cents per share. Talbots is scheduled to report on Tuesday, Jun 9, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of June 8 - 12¹. Prices are as of Thursday's, June 4, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Ferrellgas -Lp	FGP	$0.65	$0.55	(7.6%)	6/8	N/A	$16.80
Fuelcell Energy	FCEL	($0.30)	($0.38)	(9.4%)	6/8	AMC	$3.74
Pall Corp	PLL	$0.42	$0.54	(13.6%)	6/8	AMC	$26.67
Quiksilver Inc	ZQK	$0.04	$0.30	22.2%	6/8	AMC	$3.28
99 Cents Only	NDN	$0.04	($0.06)	(5.3%)	6/9	AMC	$10.04
Cra Intl Inc	CRAI	$0.30	$0.48	(48.7%)	6/9	BTO	$28.63
Gigamedia Ltd	GIGM	$0.11	$0.20	(6.7%)	6/9	BTO	$6.31
Korn/Ferry Intl	KFY	($0.06)	$0.36	(20.0%)	6/9	BTO	$11.82
Movado Grp Inc	MOV	($0.48)	$0.05	(975.0%)	6/9	BTO	$8.15
Nci Bldg System	NCS	($0.14)	$0.85	8.9%	6/9	AMC	$3.99
Oxford Inds Inc	OXM	$0.25	$0.59	100.0%	6/9	AMC	$10.85
Pep Boys M M &J	PBY	$0.06	$0.00	11.5%	6/9	BTO	$7.81
Piedmont Nat Ga	PNY	$0.66	$0.66	(1.8%)	6/9	BTO	$23.11
Rentrak Corp	RENT	$0.05	$0.10	0.0%	6/9	AMC	$10.50
Shuffle Master	SHFL	$0.04	$0.09	(75.0%)	6/9	AMC	$4.25
Streamline Hlth	STRM	($0.02)	($0.09)	N/A	6/9	AMC	$3.48
Talbots Inc	TLB	($0.49)	$0.21	(258.2%)	6/9	BTO	$4.88
Titan Machinery	TITN	$0.13	$0.24	-14.29%	6/9	BTO	$16.06
Brown Forman B	BF.B	$0.49	$0.65	5.2%	6/10	BTO	$45.99
Hooker Furnitur	HOFT	$0.16	$0.23	5.0%	6/10	BTO	$12.00
Linktone Ltd	LTON	($0.02)	($0.18)	220.0%	6/10	AMC	$2.50
Measuremnt Spcl	MEAS	$0.00	$0.31	200.0%	6/10	AMC	$6.39
Mens Wearhouse	MW	$0.00	$0.20	62.5%	6/10	AMC	$18.43
North Amer Egy	NOA	$0.16	$0.66	44.1%	6/10	AMC	$7.75
Stewart Entrp A	STEI	$0.08	$0.15	(12.5%)	6/10	BTO	$4.90
Access Integr-A	CIDM	($0.21)	($0.43)	0.0%	6/11	N/A	$1.11
Arcsight Inc	ARST	$0.07	($0.03)	300.0%	6/11	AMC	$17.75
China Med Tech	CMED	$0.45	$0.53	268.8%	6/11	BTO	$25.01
Chindex Intl	CHDX	$0.10	($0.20)	(21.4%)	6/11	BTO	$8.69
Del Monte Foods	DLM	$0.26	$0.29	36.4%	6/11	BTO	$8.40
Herley Inds Inc	HRLY	$0.16	$0.15	220.0%	6/11	AMC	$11.02
Hoku Scientific	HOKU	($0.08)	($0.12)	(300.0%)	6/11	BTO	$3.12
Lululemon Athlt	LULU	$0.08	$0.12	33.3%	6/11	BTO	$14.08
Mds Inc	MDZ	$0.06	$0.06	(14.3%)	6/11	BTO	$5.44
Natl Semicon	NSM	($0.44)	$0.35	180.0%	6/11	AMC	$13.99
Repligen	RGEN	($0.06)	($0.10)	100.0%	6/11	N/A	$4.55
School Specialt	SCHS	($0.66)	($0.66)	(13.9%)	6/11	BTO	$19.69

BTO = Before The Market Open, AMC = After The Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

Zacks Investment Research

Company Description

Universal Healthcare Services, Inc., through its subsidiaries, owns and operates acute care hospitals, surgery centers and radiation oncology centers. As of February 26, 2009, the company owned and operated 26 acute care hospitals and 101 behavioral health centers in 32 states, as well as in Washington, DC and Puerto Rico. Universal Healthcare was founded in 1978 and has a market cap of $2.51 billion.

First-Quarter Results

Universal Healthcare reported strong first-quarter results on April 27 that were ahead of estimates. Revenue was up 3% from last year to $1.31 billion. Earnings came in $1.37 per share, 24 cents ahead of the consensus estimate.

Universal reported that admissions at its behavioral health hospitals was up 1.1% while revenue per adjusted patient day increased 4.8%.

Estimates Jump

After the solid quarter, analysts went ahead and raised their earnings projections, with the current-year climbing 13 cents to $4.10 per share. The next-year estimate is pegged at $4.35, a 6% earnings growth projection.

Valuations

Based on the current-year estimate, this stock has a forward P/E multiple of 12.5X, in line with the overall market and a reasonable multiple for a stock with a respectable growth projection.

The Chart

Shares of UHS took flight in early March with the overall market, rallying from $30.50 to a recent high above $53. Take a look below.

Zacks Investment Research

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company's mission is to make higher education achievable and convenient for working adults in today's economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

A Record Quarter

The company recently posted record results in the first quarter. Revenues jumped 28% year-over-year, while earnings per share of $2.08 came in 6% ahead of the consensus estimate and topped the year-prior $1.64. Strayer's Spring 2009 total enrollments were up 22%, and the number for new students increased by 26%.

The company said it continues to expand its geographic footprint with the successful opening of its first two campuses in Ohio, located in Cincinnati and Columbus. Strayer also noted that, as of March 30, its balance sheet showed cash equivalents and marketable securities of $84.0 million with no debt.

Thanks to the strong spring enrollment growth, Strayer's second-quarter earnings per share outlook now ranges between $1.95 to $1.97 per share.

11 out of 12 analysts are calling for second-quarter earnings of $1.97 per share, up from last weeks $1.81. For the full year, 13 out of 15 analysts boosted earnings estimates to $7.25 per share from last week's $6.99.

Favorable Industry Comparisons

Strayer boasts a return of equity (ROE) of 51%, more than doubling the industry average of 22%. Strayer's net profit margin of 20% is ahead of the industry average of 15%. The company also rewards shareholders with a dividend yield of 1%. Zacks Investment Research

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company's mission is to make higher education achievable and convenient for working adults in today's economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

Higher Estimates

The company has seen analysts boost forecasts. Analyst estimates for 2009 are at $6.99 per share, up from $6.95 over the past 60 days. For 2010, projections have been steady over the past 3 months at $8.61 per share.

Quarterly Results Reflect Solid Growth

The company posted record results in its fourth-quarter and full-year report. Earnings per share of $1.71 topped the year-prior $1.34 and beat the consensus estimate by a penny. Fourth-quarter revenues jumped 28% year-over-year to $114.3 million thanks to a 5% tuition increase.

"We are pleased with both our fourth quarter and year-end financial results," said Robert S. Silberman, Chairman and Chief Executive Officer of Strayer Education, Inc. "We had a successful start to 2009 with the opening of new campuses in Augusta, Georgia and Huntsville, Alabama. We look forward to our new campus openings for the 2009 spring term in three new Strayer markets: Allentown, Pennsylvania; Charleston, West Virginia; and Salt Lake City, Utah."

Higher Income

Strayer hiked its annual divided to $2 per share from $1.50 not too long ago. The new payout translates into a quarterly dividend of 50 cents per share, an increase from 37.5 cents.

The company's dividend yield of 1.2% stands above the industry average as most companies within Strayer's industry pay no income.

Favorable Industry Comparisons

Strayer boasts a return on equity (ROE) of 46%, surging past the industry average of 12%. Equally as impressive is the fact that Strayer's balance sheet shows no debt. Zacks Investment Research

Mike Englund is chief economist at Action Economics LLC. He is a specialist in Federal Reserve policies and the U.S. economy. Before joining the Boulder, Colo.-based research firm, Englund was the chief economist for MMS International. His background also includes serving as Standard & Poor's chief market economist.

On Monday, IndexUniverse.com's Murray Coleman caught up with Englund as he was assessing the latest U.S. Treasury and Federal Reserve moves to buy so-called "toxic" assets and strengthen credit flows in U.S. markets.

IndexUniverse.com (IU): Is the current stock market rally sustainable?

Mike Englund, chief economic, Action Economics LLC (Englund): In the past two months, we've seen evidence that the rate of collapse in the U.S. economy seems to be slowing. Essentially, it's coming primarily [from an uptick] on the retail side. Whether or not that translates into moderation is something we're going to have to wait to see.

IU: How does the Fed's movement toward quantitative easing figure into all of this?

Englund: If they're going to buy fixed income, that's going to drive prices higher. It's not clear whether that's a good thing for the economy as a whole. But if you're an investor trying to sell Treasuries, it's definitely a good thing.

IU: Isn't the point to try to establish a pricing floor for mortgage-backed securities?

Englund: That's part of the plan. But the Fed is also going to be buying MBS and agency debt. There is concern at the Fed that since their debt is essentially owned by taxpayers, eventually their liabilities would be the taxpayers' if these securities wound up posting a loss in value.

So they don't want to just use quantitative easing on MBS. They're hoping that by purchasing Treasuries, that should in turn raise the value of MBS and related securities.

IU: What are the other issues facing the economy?

Englund: We're waiting to see how far consumers have pulled back. The retail sales data for March, April and May are going to be important to see if the bounce we saw in January and February is sustainable or just seasonal. We're also watching to what degree employment statistics, which are a lagging indicator, keep going [down]. We're expecting unemployment to keep rising through the fourth quarter or so. But we're hoping the rate of decline in the number of jobs outstanding will slow in the second quarter.

IU: How realistic is that?

Englund: At this stage it's hard to judge. We're hoping people quit panicking. People don't run forever. But it's hard to know when the stampede will end. Right now, everyone's running with the herd. Whether those last few retail sales numbers suggest there's a let-up is anyone's guess. Our assumption is that the sales numbers will turn out to be a helpful sign going forward.

IU: Is the government's stimulus plan helping?

Englund: It's unlikely to be helping so far. The stimulus plan had a remarkably low level of stimulus in it. Much of the spending is back-loaded over a 10-year period. Even smaller still is the collection of benefits to provide more incentives for individual business owners to hire more people.

In theory, jobs will be created. But it's not going to be a short-term shot in the arm. At the same time, consumer confidence measures fell through February, which is an ominous sign. Presumably, a mass-cash giveaway by Congress should give people some level of confidence.

IU: So what does the U.S. economy have going for it?

Englund: The one big plus is that the private sector seems to be working out its problems on its own. Given enough time, the markets are going to right themselves naturally. We're assuming somewhere around midyear this recession will end. But even if that happens, it would still represent the longest post-WWII recession on record.

IU: How does the Treasury's new toxic asset plan look?

Englund: That's clearly going to be a positive for the market. The government is going to essentially round up private capital and toss some public money into the pot as well. And officials are promising that there won't be any compensation limits on executives like they've imposed on TARP. But they said the same thing at the beginning of that program as well.

IU: Do you see the new plan working then?

Englund: It's going to be a question of what type of dialogue the government has with private investors. And we'll also have to see where legislation goes that was enacted last week in the U.S. House to limit executive compensation. Those proposals have to be reconciled with the U.S. Senate. If Congress imposes a 90% tax on bonus income on those involved with the TARP program, why would participants in this new toxic asset plan believe that they wouldn't be included in the same sort of disincentive plans?

IU: What sectors do you have the most optimism about going forward?

Englund: The Auto sector's contracted pretty sharply. There may be no further room to fall from here. And if we see further agreement between policymakers in Washington, D.C., and major automakers, some stability might come to that market. The vehicle sales numbers are quite low, but at some point, people will start buying more cars.

There are probably some people with older cars looking to buy once they've got some confidence in which automakers are going to survive. We dropped in January to a 3.8-million assembly rate—which is the rate at which we assemble cars. That's a third of the normal pace. Even if we were to double that rate by the end of the year, we'd still see a relatively poor year. But there is clearly room for a nice bounce.

IU: What other sectors could bounce back in 2009?

Englund: In general, we've seen a substantial pullback in global trade. We believe export growth fell at about a 37% clip in the first quarter. If you look at imports, they fell at about a 31% rate in the first quarter. So we've seen a sharp cutback in global trade. Economies with the most exposure to global trade, particularly those in the Pacific Rim, have been hit the hardest. Many of the Asian economies fell at a 20% clip in terms of GDP growth in the fourth quarter, and might show similar declines in the first quarter of this year. But there's a limit on how much global trade can be sustainable at this point. The rate of decline has to diminish.

IU: What sectors can benefit from that?

Englund: About a fifth of our economy has some exposure to importing and/or exporting. So this could provide a widespread boost to the U.S. economy if global trade picks up. While Automakers and Real Estate are sectors we watch closely, they represent a smaller portion of the overall economy.

For example, automakers only make up between 3-4% of GDP. Meanwhile, residential construction is about 3%. Foreign trade is clearly going to be a bigger driver of economic growth in the future.

We're assuming the rate of contraction in U.S. imports and exports will decline in the second and third quarters, and perhaps resume growth in the fourth quarter. Tourism, airlines, hotels, shipping and transportation could all benefit a great deal from a resumption of more-normalized global growth patterns.

More ugly real estate news came out Tuesday as the S&P/Case-Shiller U.S. National Home Price Index in December showed its largest quarterly fall in the 21-year history of the indexing series. 

The drop-off in the final quarter of 2008 by the benchmark – which covers all nine U.S. census divisions – represented an 18.2% decline from the same period a year ago. S&P reported that the 10-City and 20-City composite indexes also set new records, with annual declines of 19.2% and 18.5%, respectively.

With completed December data, S&P is now saying that domestic home prices have been falling nationwide for two straight years, covering 2007 and 2008. 

"The broad downturn in the residential real estate market continues,” said David Blitzer, chairman of the index committee at Standard & Poor’s, in a statement. “There are very few, if any, pockets of turnaround that one can see in the data."

The picture remained bleak in December as all of the 20 metro areas covered by the indexes were reporting annual declines. In fact, eight of those areas had negative rates exceeding 20%. And looking at annualized data, some 13 of the 20 metro areas have been reporting consecutive record declines since December 2007.

Breaking down the data on a monthly basis shows a similar trend. All of the metro areas had at least four consecutive months of negative returns in the past two years. As of December, the average U.S. home price was at a similar level as in the third quarter of 2003. From the housing market's peak in the second quarter of 2006, average home prices are down 26.7%.

Still, some bright spots did show up, although few and far between. Five metro areas -- Boston, Denver, Los Angeles, San Diego and Washington, D.C. -- saw some improvement. Those areas' rates of decline were less in December 2008 than in the previous December.  Also, Detroit showed a slight improvement in monthly returns, but fell harder in 2008 on an annualized basis.

The most recent index data through December also reported that:

• The seven worst-performing cities in terms of year-over-year declines continue to be from the sunbelt, reporting negative returns in excess of 20%. Phoenix was down 34.0%, Las Vegas reported -33.0% and San Francisco fell 31.2%.
• Denver, Dallas, Cleveland and Boston faired the best in terms of annual declines down 4.0%, 4.3%, 6.1% and 7.0%, respectively.
• Dallas was down just 8.6% from its peak in June 2007, while Phoenix is down 45.5% from its peak in June of 2006. Eighteen of the 20 metro areas were in double-digit declines from their peaks, with half of the metro areas posting declines of greater than 20% and four of those (Las Vegas, Miami, Phoenix and San Francisco) in excess of 40%.

More ugly real estate news came out Tuesday as the S&P/Case-Shiller U.S. National Home Price Index in December showed its largest quarterly fall in the 21-year history of the indexing series. 

The drop-off in the final quarter of 2008 by the benchmark—which covers all nine U.S. census divisions—represented an 18.2% decline from the same period a year ago. S&P reported that the 10-City and 20-City composite indexes also set new records, with annual declines of 19.2% and 18.5%, respectively.

With completed December data, S&P is now saying that domestic home prices have been falling nationwide for two straight years, covering 2007 and 2008. 

"The broad downturn in the residential real estate market continues,” said David Blitzer, chairman of the index committee at Standard & Poor’s, in a statement. “There are very few, if any, pockets of turnaround that one can see in the data."

The picture remained bleak in December as all of the 20 metro areas covered by the indexes were reporting annual declines. In fact, eight of those areas had negative rates exceeding 20%. And looking at annualized data, some 13 of the 20 metro areas have been reporting consecutive record declines since December 2007.

Breaking down the data on a monthly basis shows a similar trend. All of the metro areas had at least four consecutive months of negative returns in the past two years. As of December, the average U.S. home price was at a similar level as in the third quarter of 2003. From the housing market's peak in the second quarter of 2006, average home prices are down 26.7%.

Still, some bright spots did show up, although few and far between. Five metro areas—Boston, Denver, Los Angeles, San Diego and Washington, D.C.—saw some improvement. Those areas' rates of decline were less in December 2008 than in the previous December. Also, Detroit showed a slight improvement in monthly returns, but fell harder in 2008 on an annualized basis.

The most recent index data through December also reported that:

• The seven worst-performing cities in terms of year-over-year declines continue to be from the sunbelt, reporting negative returns in excess of 20%. Phoenix was down 34.0%, Las Vegas reported -33.0% and San Francisco fell 31.2%.
• Denver, Dallas, Cleveland and Boston fared the best in terms of annual declines, down 4.0%, 4.3%, 6.1% and 7.0%, respectively.
• Dallas was down just 8.6% from its peak in June 2007, while Phoenix is down 45.5% from its peak in June of 2006. Eighteen of the 20 metro areas were in double-digit declines from their peaks, with half of the metro areas posting declines of greater than 20%, and four of those (Las Vegas, Miami, Phoenix and San Francisco) in excess of 40%.

We maintain our Sell rating due to macroeconomic factors. Job growth and consumer spending continue to plummet along with the US economy. CUZ has a heavy concentration of office assets in Atlanta, a market with increasing downtown and suburban office vacancies. The company also has a large development pipeline with lease-up risk from new retail projects.

To conserve cash, the company cuts its 4Q dividend by 32%. On a P/FFO [price-to-funds from operations] basis, the company is valued at an unwarranted premium to office and retail peers. On a positive note, the company has low 2009 debt maturities and plenty of cash and availability on its line to be active in acquisitions if the opportunity arises.

Read the full analyst report on CUZ

ETF Deathwatch In '09

Tom Petruno of the Los Angeles Times notes that about 60 exchange-traded funds were closed in 2008, a big increase from past years. The articles says that only five ETFs were shuttered from 2003-2007.

He talks to Ron Rowland, who serves as chief investment officer at Capital Cities Asset Management. He also publishes newsletters advocating momentum-based trading strategies using stocks, ETFs and other types of funds. In any case, he has formulated his own ETF Deathwatch List, which enters 2009 with 97 ETFs and 42 exchange-traded notes included.

His list is calculated based on average daily volumes, among other factors. You can read the story here. 

Energy ETFs Rebounding

This article in Barron's by Michael Kahn takes a look at ETFs such as the Sector Select SPDR Energy ETF (XLE) and the Market Vectors-Coal ETF (KOL), which are starting to attract more assets and look better to techncial analysts.

You can read the story here.

Opportunities In Alternative Energy, Infrastructure

Intrepid MarketWatch reporter John Spence has an interesting report investigating which ETFs stand to benefit from a new political environment in Washington, D.C. 

Prime on those lists are infrastructure and alternative energy plays. 

You can read the story here.

More Advisors Turning To Indexing

Another part of the WSJ's package this week on fund investing talks to several portfolio managers and advisors who are switching from actively managed mutual funds to index-based portfolios.

Towards the end of Karen Hube's story is the contrarian view that active managers might actually work better in these sort of rocky times.

You can read the story here.

NYSE CEO: More Consolidation Coming

Duncan Niederauer sees more shakeout taking place in the exchange industry. At least that is what the NYSE Euronext chief executive said during a speech on Thursday, according to Dow Jones Newswires' Jacob Bunge.

Niederauer also said the NYSE Euronext is planning to register its London-based clearinghouse as a U.S. trust bank, the article added.

You can read the full report here.

From Top To Bottom & Back

Whether the Dow Jones Industrial Average bottomed on Nov. 20 is debatable, notes John Prestbo.

But the executive director of Dow Jones Indexes writes in his latest MarketWatch column that whether stock indexes have hit a trough or not, it's likely any rebound will take some time to work through the economy. He goes on to trace the history of bear markets and put the Dow's recent performance into some sort of perspective.

You can read the story here.

Japan's Nikkei Extends Streak

The Nikkei 225 Stock Average is undergoing its longest advance since May, reports Bloomberg News.

But don't get too excited. Heading into Friday, the exchange had advanced four straight days. On Thursday, experts were crediting optimism of a U.S. bailout of automakers for lifting Japanese stocks. Apparently, traders believe that passage by the Senate of the $14 billion aid package will help lower the risk of a global recession.

You can read the story here.

Foreign Exchanges Brace For Wild Ride

If foreign traders are counting on leaders in Washington, D.C., to come up with a financing plan for the Big Three car companies in the U.S., then markets might be in for a rocky ride on Friday. The Wall Street Journal  is reporting early this morning that negotiations between lawmakers over the bailout package have collapsed. 

You can read the story here.

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company's mission is to make higher education achievable and convenient for working adults in today's economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

Higher Estimates

The company has seen analysts boost forecasts. Analyst estimates for 2008 are at $5.66 per share, up from $5.54 over the past 60 days. For 2009, projections of $6.97 are above the two months-ago forecasts of $6.71.

Quarterly Results Reflect Solid Growth

The company posted third-quarter revenue growth of 25% on a year-over-year basis. Net income increased to $11.8 million from $9.3 million last year. This translates into earnings per share of 83 cents, which topped analyst estimates by 2 cents.

This was the fourth time in the last four quarters that Strayer exceeded the consensus estimate by an average of 4 cents or 2.65%.

Strayer also noted that during the quarter enrollment jumped 24% to 44,564.

Higher Income

Strayer hiked its annual divided to $2 per share from $1.50, which translates into a quarterly dividend of 50 cents per share, an increase from 37.5 cents.

The company added that its board amended a share-buyback program to authorize the repurchase of up to $100 million worth of the company's common stock over a 14-month period. As of September 30, Strayer had more than 14.2 million common shares outstanding.

Favorable Industry Comparisons

Strayer boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer's balance sheet shows no debt.
"STR1" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Just 49 companies have been confirmed to report for the second week of December. Within this group are S&P 500 members AutoZone, Inc. (AZO), Ciena Corporation (CIEN), Costco (COST), H&R Block, Inc. (HRB), The Kroger Co. (KR), National Semiconductor Corporation (NSM) and Pall Corporation (PLL).

(The light earnings calendar is typical for this time of year. Except for a mid-December bump when some early reporters give their end-of-year results, there will not be a significant number of earnings reports until the second-half of January.)

The scheduled economic data should not move the markets significantly. October pending homes sales might get more attention on Tuesday given the recent rebound in homebuilding stocks, but I don't expect it to have a meaningful impact.

• Tuesday: October pending home sales
• Wednesday: October wholesale inventories, November treasury deficit, weekly crude inventories
• Thursday: November import and export prices, October trade balance, weekly initial jobless claims
• Friday: November retail sales, preliminary December University of Michigan consumer confidence, November producer price index (PPI), October business inventories

Federal Reserve Governor Randall Kroszner will speak in Geneva about the potential for market instability on Monday. Later in the day, Vice Chairman Donald Kohn will talk about the banking system at a housing forum in Washington, D.C.

The Fed will hold its final scheduled meeting of the year on Dec 16. Futures are pricing a 75-basis point cut.

Congress could hold a vote on whether to extend the Big 3 financing. Many senators were not swayed on Thursday, however, so it is unclear what the future of the bailout is.

Unscheduled events remain a wildcard, including any new actions taken by Treasury Secretary Henry Paulson or new economic proposals from President-elect Barack Obama.

Companies That Could Issue Positive Earnings Surprises

Trends in earnings estimate revisions do not suggest any of the companies reporting will top expectations.

Companies That Could Issue Negative Earnings Surprises

All of the covering brokerage analysts cut their fiscal third-quarter profit projections on CKE Restaurants, Inc. (CKE) over the past few weeks. One reason might have been the company's observation that restaurant operating costs rose 60 to 80 basis points during the quarter. The downward revisions caused the consensus earnings estimate to fall 7 cents to 10 cents per share. CKE has missed during the past 3 quarters. CKE Restaurants is scheduled to report on Wednesday, Dec 10, after the close of trading.

Last month, National Semiconductor Corporation (NSM) revised its fiscal second-quarter revenue guidance. Due to weakness in the wireless handset market, the company expects sales to total between $420 and $425 million. (Previously, NSM predicted sales of $470 to $480 million.) The majority of the covering brokerage analysts quickly cut their profit forecasts, causing the consensus earnings estimate to fall 8 cents to 24 cents per share. The most accurate estimate is more bearish at 20 cents per share. Investors should also note that NSM missed first-quarter expectations by a penny per share. National Semiconductor is scheduled to report on Monday, Dec 8, after the close of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Dec 8 - 12¹. Prices are as of Thursday's, Dec 4, market close.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time	Price
H & R Block	HRB	($0.41)	($0.42)	(14.3%)	12/8/2008	AMC	$19.79
Gander Mtn Co	GMTN	$0.02	($0.25)	(42.9%)	12/8/2008	AMC	$1.52
Idt Corp-Cl B	IDT	($0.34)	($0.23)	(63.6%)	12/8/2008	N/A	$0.46
Learning Tree	LTRE	$0.14	$0.21	(11.5%)	12/8/2008	AMC	$9.99
Mitcham Inds	MIND	$0.29	$0.24	(27.3%)	12/8/2008	AMC	$4.15
Natl Semicon	NSM	$0.24	$0.34	(2.9%)	12/8/2008	AMC	$10.15
Adc Telecomm	ADCT	$0.12	$0.29	0.0%	12/9/2008	AMC	$5.58
Analogic Corp	ALOG	$0.54	$0.52	5.8%	12/9/2008	BTO	$36.12
Arcsight Inc	ARST	$0.00	N/A	(33.3%)	12/9/2008	AMC	$5.18
Autozone Inc	AZO	$2.20	$2.02	(0.5%)	12/9/2008	BTO	$114.38
Cooper Cos	COO	$0.58	$0.54	3.1%	12/9/2008	AMC	$13.76
Ferrellgas -Lp	FGP	($0.41)	($0.41)	(15.1%)	12/9/2008	N/A	$15.00
Finisar Corp	FNSR	$0.03	($0.03)	100.0%	12/9/2008	AMC	$0.46
G-Iii Apparel	GIII	$1.76	$1.41	8.0%	12/9/2008	AMC	$7.03
Ico Inc	ICOC	$0.15	$0.17	(15.8%)	12/9/2008	N/A	$3.83
Kroger Co	KR	$0.38	$0.37	2.4%	12/9/2008	BTO	$26.88
Ltx-Credence Cp	LTXC	($0.13)	($0.06)	(66.7%)	12/9/2008	AMC	$0.31
Methode Elect-A	MEI	$0.16	$0.24	0.0%	12/9/2008	BTO	$8.33
Navisite Inc	NAVI	($0.09)	($0.08)	(233.3%)	12/9/2008	N/A	$0.43
Oxford Inds Inc	OXM	$0.49	N/A	30.3%	12/9/2008	AMC	$5.84
Pall Corp	PLL	$0.38	$0.34	0.0%	12/9/2008	AMC	$25.62
Pep Boys M M &J	PBY	$0.01	($0.54)	57.1%	12/9/2008	BTO	$4.37
Saic Inc	SAI	$0.29	$0.26	3.8%	12/9/2008	AMC	$17.73
Tier Tech Inc	TIER	($0.17)	($0.07)	71.4%	12/9/2008	AMC	$4.34
Toro Co	TTC	$0.08	$0.16	2.1%	12/9/2008	BTO	$28.45
Vail Resorts	MTN	($0.83)	($0.63)	(52.6%)	12/9/2008	BTO	$20.43
Williams Ctrls	WMCO	$0.31	$0.20	-20.00%	12/9/2008	N/A	$7.50
Biodel Inc	BIOD	($0.45)	($0.42)	4.4%	12/10/2008	BTO	$2.61
Bway Holding Co	BWY	$0.31	$0.13	20.6%	12/10/2008	BTO	$4.50
Cke Restaurants	CKR	$0.10	$0.15	21.0%	12/10/2008	N/A	$7.71
Emcore Corp	EMKR	($0.02)	($0.13)	(150.0%)	12/10/2008	AMC	$1.38
Fifth Street Fi	FSC	$0.28	N/A	9.1%	12/10/2008	AMC	$6.63
Fuelcell Energy	FCEL	($0.31)	($0.25)	(50.0%)	12/10/2008	AMC	$3.78
Greif Bros-Cl A	GEF	$1.21	$1.14	6.3%	12/10/2008	AMC	$30.48
Hooker Furnitur	HOFT	$0.35	$0.50	(21.7%)	12/10/2008	BTO	$6.95
Korn/Ferry Intl	KFY	$0.28	$0.37	20.0%	12/10/2008	N/A	$11.63
Multimedia Game	MGAM	$0.00	$0.02	(75.0%)	12/10/2008	BTO	$2.26
Ocean Power Tec	OPTT	($0.46)	($0.18)	5.0%	12/10/2008	BTO	$7.93
Powell Inds	POWL	$0.58	$0.22	23.2%	12/10/2008	BTO	$20.09
Ciena Corp	CIEN	($0.04)	$0.38	(3.3%)	12/11/2008	BTO	$6.19
Costco Whole Cp	COST	$0.62	$0.59	5.4%	12/11/2008	BTO	$52.75
Esterline	ESL	$1.06	$0.78	6.3%	12/11/2008	AMC	$32.80
Gildan Actvwear	GIL	$0.45	$0.38	2.2%	12/11/2008	BTO	$14.25
Integral Sys/Md	ISYS	$0.20	$0.22	52.8%	12/11/2008	BTO	$21.57
Krispy Kreme	KKD	$0.01	($0.01)	(200.0%)	12/11/2008	N/A	$2.49
Lululemon Athlt	LULU	$0.13	$0.11	28.6%	12/11/2008	BTO	$9.57
Martek Bioscs	MATK	$0.27	$0.23	16.7%	12/11/2008	AMC	$27.39
NCI Bldg System	NCS	$1.12	$1.27	39.3%	12/11/2008	N/A	$13.37
White Electronc	WEDC	$0.07	$0.06	57.1%	12/11/2008	AMC	$3.63

BMO = Before The Market Open, AMC = After Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

"NST" Free Stock Analysis: Buy? Sell? Hold?
"PLLA" Free Stock Analysis: Buy? Sell? Hold?
"BLC" Free Stock Analysis: Buy? Sell? Hold?
"CIEN" Free Stock Analysis: Buy? Sell? Hold?
"AZO" Free Stock Analysis: Buy? Sell? Hold?
"PCLB" Free Stock Analysis: Buy? Sell? Hold?
"KR" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Just 49 companies have been confirmed to report for the second week of December. Within this group are S&P 500 members AutoZone, Inc. (AZO), Ciena Corporation (CIEN), Costco (COST), H&R Block, Inc. (HRB), The Kroger Co. (KR), National Semiconductor Corporation (NSM) and Pall Corporation (PLL).

(The light earnings calendar is typical for this time of year. Except for a mid-December bump when some early reporters give their end-of-year results, there will not be a significant number of earnings reports until the second-half of January.)

The scheduled economic data should not move the markets significantly. October pending homes sales might get more attention on Tuesday given the recent rebound in homebuilding stocks, but I don't expect it to have a meaningful impact.

• Tuesday: October pending home sales
• Wednesday: October wholesale inventories, November treasury deficit, weekly crude inventories
• Thursday: November import and export prices, October trade balance, weekly initial jobless claims
• Friday: November retail sales, preliminary December University of Michigan consumer confidence, November producer price index (PPI), October business inventories

Federal Reserve Governor Randall Kroszner will speak in Geneva about the potential for market instability on Monday. Later in the day, Vice Chairman Donald Kohn will talk about the banking system at a housing forum in Washington, D.C.

The Fed will hold its final scheduled meeting of the year on Dec 16. Futures are pricing a 75-basis point cut.

Congress could hold a vote on whether to extend the Big 3 financing. Many senators were not swayed on Thursday, however, so it is unclear what the future of the bailout is.

Unscheduled events remain a wildcard, including any new actions taken by Treasury Secretary Henry Paulson or new economic proposals from President-elect Barack Obama.

Companies That Could Issue Positive Earnings Surprises

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Trends in earnings estimate revisions do not suggest any of the companies reporting will top expectations.

Companies That Could Issue Negative Earnings Surprises

All of the covering brokerage analysts cut their fiscal third-quarter profit projections on CKE Restaurants, Inc. (CKR) over the past few weeks. One reason might have been the company's observation that restaurant operating costs rose 60 to 80 basis points during the quarter. The downward revisions caused the consensus earnings estimate to fall 7 cents to 10 cents per share. CKE has missed during the past 3 quarters. CKE Restaurants is scheduled to report on Wednesday, Dec 10, after the close of trading.

Last month, National Semiconductor Corporation (NSM) revised its fiscal second-quarter revenue guidance. Due to weakness in the wireless handset market, the company expects sales to total between $420 and $425 million. (Previously, NSM predicted sales of $470 to $480 million.) The majority of the covering brokerage analysts quickly cut their profit forecasts, causing the consensus earnings estimate to fall 8 cents to 24 cents per share. The most accurate estimate is more bearish at 20 cents per share. Investors should also note that NSM missed first-quarter expectations by a penny per share. National Semiconductor is scheduled to report on Monday, Dec 8, after the close of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Dec 8 - 12¹. Prices are as of Thursday's, Dec 4, market close.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time	Price
H & R Block	HRB	($0.41)	($0.42)	(14.3%)	12/8/2008	AMC	$19.79
Gander Mtn Co	GMTN	$0.02	($0.25)	(42.9%)	12/8/2008	AMC	$1.52
Idt Corp-Cl B	IDT	($0.34)	($0.23)	(63.6%)	12/8/2008	N/A	$0.46
Learning Tree	LTRE	$0.14	$0.21	(11.5%)	12/8/2008	AMC	$9.99
Mitcham Inds	MIND	$0.29	$0.24	(27.3%)	12/8/2008	AMC	$4.15
Natl Semicon	NSM	$0.24	$0.34	(2.9%)	12/8/2008	AMC	$10.15
Adc Telecomm	ADCT	$0.12	$0.29	0.0%	12/9/2008	AMC	$5.58
Analogic Corp	ALOG	$0.54	$0.52	5.8%	12/9/2008	BTO	$36.12
Arcsight Inc	ARST	$0.00	N/A	(33.3%)	12/9/2008	AMC	$5.18
Autozone Inc	AZO	$2.20	$2.02	(0.5%)	12/9/2008	BTO	$114.38
Cooper Cos	COO	$0.58	$0.54	3.1%	12/9/2008	AMC	$13.76
Ferrellgas -Lp	FGP	($0.41)	($0.41)	(15.1%)	12/9/2008	N/A	$15.00
Finisar Corp	FNSR	$0.03	($0.03)	100.0%	12/9/2008	AMC	$0.46
G-Iii Apparel	GIII	$1.76	$1.41	8.0%	12/9/2008	AMC	$7.03
Ico Inc	ICOC	$0.15	$0.17	(15.8%)	12/9/2008	N/A	$3.83
Kroger Co	KR	$0.38	$0.37	2.4%	12/9/2008	BTO	$26.88
Ltx-Credence Cp	LTXC	($0.13)	($0.06)	(66.7%)	12/9/2008	AMC	$0.31
Methode Elect-A	MEI	$0.16	$0.24	0.0%	12/9/2008	BTO	$8.33
Navisite Inc	NAVI	($0.09)	($0.08)	(233.3%)	12/9/2008	N/A	$0.43
Oxford Inds Inc	OXM	$0.49	N/A	30.3%	12/9/2008	AMC	$5.84
Pall Corp	PLL	$0.38	$0.34	0.0%	12/9/2008	AMC	$25.62
Pep Boys M M &J	PBY	$0.01	($0.54)	57.1%	12/9/2008	BTO	$4.37
Saic Inc	SAI	$0.29	$0.26	3.8%	12/9/2008	AMC	$17.73
Tier Tech Inc	TIER	($0.17)	($0.07)	71.4%	12/9/2008	AMC	$4.34
Toro Co	TTC	$0.08	$0.16	2.1%	12/9/2008	BTO	$28.45
Vail Resorts	MTN	($0.83)	($0.63)	(52.6%)	12/9/2008	BTO	$20.43
Williams Ctrls	WMCO	$0.31	$0.20	-20.00%	12/9/2008	N/A	$7.50
Biodel Inc	BIOD	($0.45)	($0.42)	4.4%	12/10/2008	BTO	$2.61
Bway Holding Co	BWY	$0.31	$0.13	20.6%	12/10/2008	BTO	$4.50
CKE Restaurants	CKR	$0.10	$0.15	21.0%	12/10/2008	N/A	$7.71
Emcore Corp	EMKR	($0.02)	($0.13)	(150.0%)	12/10/2008	AMC	$1.38
Fifth Street Fi	FSC	$0.28	N/A	9.1%	12/10/2008	AMC	$6.63
Fuelcell Energy	FCEL	($0.31)	($0.25)	(50.0%)	12/10/2008	AMC	$3.78
Greif Bros-Cl A	GEF	$1.21	$1.14	6.3%	12/10/2008	AMC	$30.48
Hooker Furnitur	HOFT	$0.35	$0.50	(21.7%)	12/10/2008	BTO	$6.95
Korn/Ferry Intl	KFY	$0.28	$0.37	20.0%	12/10/2008	N/A	$11.63
Multimedia Game	MGAM	$0.00	$0.02	(75.0%)	12/10/2008	BTO	$2.26
Ocean Power Tec	OPTT	($0.46)	($0.18)	5.0%	12/10/2008	BTO	$7.93
Powell Inds	POWL	$0.58	$0.22	23.2%	12/10/2008	BTO	$20.09
Ciena Corp	CIEN	($0.04)	$0.38	(3.3%)	12/11/2008	BTO	$6.19
Costco Whole Cp	COST	$0.62	$0.59	5.4%	12/11/2008	BTO	$52.75
Esterline	ESL	$1.06	$0.78	6.3%	12/11/2008	AMC	$32.80
Gildan Actvwear	GIL	$0.45	$0.38	2.2%	12/11/2008	BTO	$14.25
Integral Sys/Md	ISYS	$0.20	$0.22	52.8%	12/11/2008	BTO	$21.57
Krispy Kreme	KKD	$0.01	($0.01)	(200.0%)	12/11/2008	N/A	$2.49
Lululemon Athlt	LULU	$0.13	$0.11	28.6%	12/11/2008	BTO	$9.57
Martek Bioscs	MATK	$0.27	$0.23	16.7%	12/11/2008	AMC	$27.39
NCI Bldg System	NCS	$1.12	$1.27	39.3%	12/11/2008	N/A	$13.37
White Electronc	WEDC	$0.07	$0.06	57.1%	12/11/2008	AMC	$3.63

BMO = Before The Market Open, AMC = After Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

"NST" Free Stock Analysis: Buy? Sell? Hold?
"PLLA" Free Stock Analysis: Buy? Sell? Hold?
"CARL" Free Stock Analysis: Buy? Sell? Hold?
"AZO" Free Stock Analysis: Buy? Sell? Hold?
"CIEN" Free Stock Analysis: Buy? Sell? Hold?
"PCLB" Free Stock Analysis: Buy? Sell? Hold?
"BLC" Free Stock Analysis: Buy? Sell? Hold?
"KR" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

I spent some time looking at the Chicago Mercantile Exchange's housing futures this week.  The futures are tied to the S&P Case-Shiller Home Price Indexes, and are the only liquid way to bet on where house prices are heading.

Right now, the futures all agree: home prices are going lower.

The longest-dated contract available expires November 2012. Using that contract, I looked at the most recent sale to see where the market thinks home prices will be in four years.  The data compare November 2012 vs. August 2008, because August 2008 is the last date for which we have index data available.

Those numbers don't look too bad, until you realize a few things. 

First, remember that most people buy their homes on margin.  Suppose you're considering buying a $300,000 home in Los Angeles. You've put $60,000 down.  Four years from now, you expect the home's value to decline $51,660 (17.22% of $300K). If the home price futures are right, you will lose 86% of your down payment.

No wonder homes aren't selling.

The second thing to understand is that home prices are already down big in all of these markets. The table below shows how far prices are down off their all-time highs today, and how much further they'll decline by November 2012 if the futures markets are right.

Those numbers are scary.

National home prices down 29%?  It was just a few years ago when people said we would never have a nationwide home price.

And here's the thing people aren't remembering:  These are real dollar prices, not inflation-adjusted values.  National home prices hit their peak in September 2006, and based on the CPI, inflation has risen about 5% since then. Build that into the calculator, and national home prices are actually down about 25.67% from their peak.

It's worse if you carry it forward. Consumer inflation is running about 5% per year right now.  If you run that through November 2012, national home prices will be down about 44.44% from their peak on a real-dollar basis. Las Vegas home prices will be down 56.19%.

Those are simply incredible figures.

The home price futures are thinly traded, so price discovery might not be perfect. There could be an opportunity here for someone to take the other side of the trade and bet that home prices will stabilize or even rise a little between now and 2012.

Any takers?

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company's mission is to make higher education achievable and convenient for working adults in today's economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

Quarterly Results Reflect Solid Growth

The company posted third-quarter revenue growth of 25% on a year-over-year basis. Net income increased to $11.8 million from $9.3 million last year. This translates into earnings per share of 83 cents, which topped analyst estimates by 2 cents.

This was the fourth time in the last four quarters that Strayer exceeded the consensus estimate by an average of 4 cents or 2.65%.

Strayer also noted that during the quarter enrollment jumped 24% to 44,564.

Guidance Raised

After the solid quarter, Strayer boosted its fourth-quarter guidance, saying it now expects to earn between $1.68 and $1.70 per share. The company expects full-year earnings to be between $5.65 and $5.67 per share.

Both the quarterly and full-year outlook is in line with analyst forecasts.

More Favorable Fundamentals

Strayer boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer's balance sheet shows no debt.

Higher Income

Strayer hiked its annual divided to $2 per share from $1.50, which translates into a quarterly dividend of 50 cents per share, an increase from 37.5 cents. The first distribution of the higher dividend will occur on December 10 to shareholders of record as of November 26.

The company added that its board amended a share-buyback program to authorize the repurchase of up to $100 million worth of the company's common stock over the next 14 months. As of September 30, Strayer had more than 14.2 million common shares outstanding.
"STR1" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

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Noah Hamman is chief executive officer of AdvisorShares Investments LLC, a Washington, D.C.-based exchange-traded funds provider. Before starting the firm in late 2006, he was vice president of business development at Rydex Investments.

The start-up company recently sold a 60% stake to Fund.com, a New York-based over-the-counter public asset manager and educational content provider. It trades with the ticker symbol of FNDM. IndexUniverse's Managing Editor Murray Coleman recently caught up with Hamman to discuss events surrounding his company and active ETFs.

IndexUniverse: Why did you sell a majority interest in AdvisorShares?

Hamman: There were two reasons. One was to find a financial partner for the business. Fund.com is also relatively new, but they're very well-financed. The second part was about trying to work with someone who can integrate our business model and create a strong fit for both.

IU: AdvisorShares is strictly an actively managed ETF provider, isn't it?

Hamman: Yes, and we've got two ETFs currently under registration at the moment. One is designed to rotate around different sectors in the marketplace, depending on a specific subadvisor's style and methodology. The second one is a country rotation fund, which will shift between emerging and developed markets around the world—including the U.S. So it's a truly global ETF strategy. And each can use other underlying ETFs, so each will be an ETF-of-ETFs.  But we expect to register more products that will employ a number of different strategies, both in terms of ETFs-of-ETFs as well as more traditional ETFs comprised of different stocks. Our plan is to work with a broad range of subadvisors. A single ETF could have multiple subadvisors with an overlay manager around it.

IU: How close are you to getting a green light for these from the Securities and Exchange Commission?

Hamman: I would assume we're close. We've been in line for awhile, and from my days at Rydex, I certainly understand that it isn't always a quick process. But I do believe we're within a week or two of getting it, based on the feedback we're receiving from the SEC.

IU: These first two ETFs are built as retail strategies, aren't they?

Hamman:  Yes, but we plan in the future to launch hedging-like strategies and more sophisticated types of ETFs that will attract some institutional interest.

IU: Will these be truly actively managed?

Hamman: Yes, and I say that because there's nothing in our exemptive relief that limits how much our subadvisors can trade. So we don't want to change how a manager normally conducts transactions. We plan on working with existing mutual fund managers as well as emerging managers in separate accounts or other types of portfolios. In fact, we expect to work with some hedge fund managers at some point. These ETFs won't be a whole lot different than existing actively managed fund strategies found in other investment vehicles.

IU: How will your ETFs deal with transparency issues?

Hamman: They'll be fully transparent on a daily basis. The portfolio manager will make trades on a daily basis and then the fund will disclose those trades before the opening of the next day's session.

IU: Doesn't that lend itself to somewhat stale data?

Hamman: That's a very good question. We plan to incorporate a patent-pending process that improves the ability for our ETFs to trade at a more efficient price. If we get approval, that might open up our ETFs to providing even more timely transparency—in other words, sometime before the end of each trading day. But our exemptive relief request is designed to proceed whether the patent is approved or not. So we could conceivably operate just like any existing actively managed ETF.  We think that providing more information to specialists and market makers can only help make a more efficient market that will keep bid/ask spreads tight.

IU: But aren't active managers wary of providing timely information on a daily basis?

Hamman: It's true, and some subadvisors out there won't find such a prospect appealing. For example, when illiquid markets like micro-caps are involved, transparency issues might be more of a concern to some managers. In general, though, we think that most investors aren't going to find it appealing to log on to a computer and track a portfolio that closely. We think there are fund managers who agree with us and don't see transparency as a competitive disadvantage. They see transparency as more of a positive than as more of a negative. 

IU: How do transparency issues work with active mutual fund managers in actively managed ETFs?

Hamman: The managers who are going to be the most concerned about transparency issues probably will turn out to be very active traders rather than investors. And again, they're more likely to be people who work in more illiquid parts of the market. Practically speaking, I don't think creating good, smart, actively managed ETFs precludes finding the best investment managers.

IU: What does Fund.com plan to do going forward?

Hamman: Their expansion plan is to make more strategic investments in asset managers and platforms, both in ETFs as well as mutual funds. Their focus also includes hedge funds, variable insurance funds and any sort of pooled investment. Besides those activities, Fund.com plans to create original content and provide expert third-party content for investors. They want to be able to do this as an investment community and bring a social networking aspect to their Web site. Their focus is that individual investors are under-served in terms of advice. So they want to be able to take data and wrap it into high-quality advisory content.

The most interesting news item recently was found on the cover of the Financial Times newspaper, where we learn that a guy named Lahde “made tens of millions of dollars from betting against the financial and property sectors during [the] past two years”, and he now wanted to thank “the low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA” who made it all possible…

CUZ has a large development pipeline with significant lease up risk from new retail projects. The current yield is now near 9%, although the company is not funding the dividend with operating cash. Shares have dropped nearly 30% over the past two days due to a general market sell-off. Despite this, on a P/FFO [price-to-funds from operations] basis, CUZ still trades at a significant premium to peer group averages.

We think the current premium is unwarranted and are changing our near-term recommendation to Sell. We are setting our price target to $16 per share or approximately 14x 2008 FFO estimates.

Read the full analyst report on CUZ

At the New York close, the blue-chip Dow Jones Industrial Average Index plunged 508.39 points, or 5.11%, to close at 9,447.11. The tech-laden Nasdaq Composite Index plummeted 108.08 points, or 5.80%, to close at 1,754.88. And the broader Standard & Poor’s 500 Index dived 60.66 points, or 5.74%, to finish the day at 996.23.

The S&P 500 closed below 1,000 for the first time since 2003.

The Dow is down 29% year-to-date, while the S&P 500 is down over 32% over the same time period. With such huge declines, 2008 marks the worst year for the domestic markets since 1937, Bloomberg News reported.

“Capital markets are very tight right now,” Douglas Christopher, a partner at Crowell Weeden & Co. in Los Angeles, told Bloomberg. “Companies that need external financing or are perceived to need external financing are going to be given a discount in the current environment.”

The Fed’s Latest Gambit

The new Commercial Paper Funding Facility (CPFF) will provide a backstop to the commercial paper market that has been brought to a standstill, even for those firms far removed from the financial sector.

“The immediate threat to the real economy is that large corporations are having difficulty obtaining funds via the commercial paper market,” Mark Gertler, a New York University economist, told Bloomberg.

The commercial paper market reached a three-year low of $1.6 trillion as money-market fund managers, typically huge buyers of commercial paper, became extremely risk averse after a handful of funds “broke the buck.” In a flight to quality mainly into U.S. Treasuries, money market funds liquidated commercial paper holdings by $200.3 billion, or 29%, in the final two weeks of September, according to data compiled by IMoneyNet Inc., Bloomberg reported.

Auto manufacturers, utilities and others make use of short-term lending in the commercial paper market – borrowing money for periods ranging from just overnight to three months – to cover occasional gaps in daily cash flows. The commercial paper market is vital to the ongoing operations for many large corporations, which use the short-term funds to make payroll or pay bills.

“By eliminating much of the risk that eligible issuers will not be able to repay investors by rolling over their maturing commercial paper obligations, this facility should encourage investors to once again engage in term lending in the commercial paper market,” the U.S. Federal Reserve said in a statement released yesterday (Tuesday) morning.

“An improved commercial paper market will enhance the ability of financial intermediaries to accommodate the credit needs of businesses and households,” the statement concluded.

The CPFF will remain in place until Apr. 30, 2009, at which point the Fed Board of Governors would need to vote to extend it if necessary.

“While we have continued to fund without disruption, the Fed announcement today is an important development that will help restore confidence in the market and facilitate more lending,” General Electric Co. (GE) spokesman Russell Wilkerson said, Bloomberg reported. “This is a positive move and we applaud the Fed’s decisive action.”

GE is the largest domestic commercial paper issuer through GE Capital, its financial subsidiary.

Gloomy Economic Outlook

Speaking yesterday afternoon at the National Association for Business Economics 50th Annual Meeting in Washington, D.C., Fed Chairman Ben S. Bernanke tried to strike a reassuring tone that the recent economic measures enacted by the government would have the intended effect, while also acknowledging the dire economic data.

“Over all, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased,” Bernanke said in his speech.

Some analysts felt this was an indication that the Fed would move to cut interest rates at the next Federal Open Market Committee meeting slated for Oct. 28 – 29.

“The steps being taken now to restore confidence in our institutions and markets will go far to resolving the current dislocations in the markets. I believe that the bold actions taken by the Congress, the Treasury, the Federal Reserve, and other agencies, together with the natural recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery,” Bernanke said.

Britain’s Own Bank Bailout

Meanwhile, the global impact of the credit crisis is hitting British banks hard. In the United Kingdom, Prime Minister Gordon Brown’s government is preparing a rescue package in response to diving British bank shares. Royal Bank of Scotland PLC (ADR: RBS) Barclays PLC (ADR: BCS), HBOS PLC (OTC ADR: HBOOY) and Lloyds TSB Group PLC (ADR: LYG) are all in need or recapitalization, The Wall Street Journal reported.

It is unknown if Britain’s largest bank, HSBC Holdings Ltd., would need government assistance. Its capital position is currently seen as the strongest.

The U.K. government plans to announce its plan today (Wednesday).

Source: Federal Reserve to Buy Commercial Paper to Free Up Frozen Market

-- Meanwhile, McCain's fellow Republican George W. Bush made a televised appeal for the swift passage the plan. He said the "entire economy is in danger" and warned of a "financial panic" and "a long and painful recession" if Congress didn't pass the bill soon.

-- "Most illiquid assets are illiquid because they're not worth anything," said Ron Paul to Fed head Ben Bernanke during testimony in Washington, DC, yesterday. Presumably, this holds true even if the "entire economy is in danger."

-- US stock futures are limp this morning following Bush's address and news that General Electric (NYSE:GE) cut its earnings estimates and halted its stock buyback. "S&P 500 futures rose 3 points to 1,196.00 and Nasdaq 100 futures added 12.25 points to 1,684.25. Dow industrial futures rose 9 points," according to Market Watch.

-- Bush's dire warnings on the state of the economy he has been in charge of for the last eight years didn't exactly help the dollar either. The buck "fell to $1.4686 per euro as of 6:35 a.m. in New York, from $1.4621 yesterday," according to Bloomberg. "The currency declined to 105.91 yen from 106.11. The euro was at 155.57 yen from 155.15. The U.S. currency dropped to $1.8553 against the pound from $1.8465, and to 1.0836 versus the franc from 1.0916."

-- Yesterday on Contrarian Profits, Rude Awakening editor Eric Fry urged investors to "Sell the dollar, sell the dollar, sell the dollar." (We think he was being pretty clear on this one.)

The Treasury and the Federal hope that these actions will restore buoyancy to the potential markets. But we doubt it. Instead, we suspect that these actions will only add buoyancy to the US inflation rate and, therefore, to commodity prices.

Most of the bad guys who created this mess are gone…although not yet in prison where they belong. And most of the American regulatory agencies are eager to change the rules of the game. These two developments are very helpful. But the process of repairing and reforming the American financial system could be painful. The U.S. Treasury will absolutely, positively increase the money supply to rescue the financial system…Which means investors must try to protect themselves against an almost certain inflation.

So what’s an investor to do?

Sell American stocks, bonds and currencies; buy foreign stocks, bonds and currencies. And, of course, buy commodities.

-- Crude oil is down near its three-day low in New York on a report that revealed demand is at its lowest in almost five years. According to Bloomberg, "crude oil for November delivery was at $105.77 a barrel, up 4 cents, in after-hours electronic trading on the New York Mercantile Exchange at 12:45 p.m. Singapore time."

-- Eric Roseman in The Sovereign Society is buying oil stocks, nevertheless. He believes "hard assets" like oil and gold are the best assets to own if you believe that inflation remains embedded in the financial system...

Inflation is not dead and commodities remain in a secular bull market as China and other rapidly growing economies continue to boost domestic consumption and increase trade.

The credit crisis is a Western problem, not an Asian one. Balance sheets across Asia are not restricted by sub-prime losses or other mortgage-related write-downs. So the sooner the U.S. finally tackles the credit crisis, the sooner Asian growth will reaccelerate. That’s when I expect commodities to bottom.

The long-term picture remains bullish for these markets and commodities. Over the next 12 months, I see the greatest reflation trade of the century hitting the markets, courtesy of the United States government and the European Union.

How To Prepare For an SEC Examination

Earlier today I found out about a seminar that K & L Gates is presenting at no cost to those who are looking for advice on how to prepare for an SEC examination. Here are the details:

In this program, partners in our Investment Management and SEC Enforcement Groups will provide practical suggestions for hedge fund managers to prepare for an SEC examination. We will address this topic from the standpoint of advisers managing hedge funds, separate accounts, or both, and from the standpoint of an adviser with an affiliated broker/dealer. We will give pointers on preparing for and managing an SEC examination, and we will cover SEC hot button topics, including valuation, short selling, insider trading and market manipulation, conflicts of interest and testing of compliance procedures. In addition, in certain locations, we will also address preparing for a Department of Labor, CFTC and National Futures Association examination.

If you are interested in attending this event you may register by clicking here. For further questions, please email Nancy Feldman or call 617.951.9257

Location Information

Boston
Tuesday, October 7, 2008
K&L Gates
State Street Financial Center
One Lincoln Street
Boston, MA 02111

San Francisco
Wednesday, October 29, 2008
The Westin San Francisco Market Street
50 Third Street
San Francisco, CA 94103

New York
Wednesday, November 12, 2008
K&L Gates
599 Lexington Avenue
New York, NY 10022

Washington, DC
Wednesday, November 19, 2008
K&L Gates
1601K Street, NW
Washington, DC 20006

Panelists

Boston
Mark P. Goshko, K&L Gates Boston office
Nicholas S. Hodge , K&L Gates Boston office
Peter N. McIsaac , K&L Gates Boston office
Rebecca O'Brien Radford , K&L Gates Boston office

San Francisco
J. Matthew Mangan , K&L Gates San Francisco office
Mark D. Perlow , K&L Gates San Francisco office
Richard M. Phillips , K&L Gates San Francisco office
William P. Wade , K&L Gates Los Angeles office

New York
Edward G. Eisert , K&L Gates New York office
Beth L. Golden , K&L Gates New York office
Kay A. Gordon , K&L Gates New York Office
David Pickle , K&L Gates Washington, DC office

Washington, DC
Cary J. Meer , K&L Gates Washington, DC office
Lawrence B. Patent , K&L Gates Washington, DC office
Robert H. Rosenblum , K&L Gates Washington, DC office
William A. Schmidt , K&L Gates Washington, DC office
Stephen G. Topetzes , K&L Gates Washington, DC office

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