Friday Morning, October 26th

SITE NEWS

New IceMD Recording:

Broccoli and Skin Cancer;

Hidden Treasure News:

Lucas Energy Acquires Major Stake in Bonanza Oil & Gas

HOUSTON, TEXAS – Oct. 24, 2007 - Lucas Energy, Inc. (LUCE), a U.S. based independent oil and gas company, is pleased to announce it has acquired a major stake in Bonanza Oil & Gas Inc., a Texas based company engaged in the production and development of oil and gas reserves, as well as the development and evaluation of 3D seismic programs.

Lucas Energy has exchanged its stake in the ApClark prospect, an oil and gas property covering approximately 6,700 acres located in the ApClark field in Southwestern Borden County, Texas, for 3,000,000 shares of Bonanza Oil & Gas (OTCBB:NFLA) representing a 24.6% stake in the company.  Lucas intends on immediately divesting of ½ of the shares in a private transaction to bring its position in Bonanza to 12.3%.

“We are pleased with our investment in Bonanza and are confident it will provide a substantial ROI for Lucas,’ commented James Cerna Jr., CEO of Lucas Energy Inc.

Bonanza Oil & Gas is led by a team of industry veterans and holds assets ranging from wholly owned prospects to working interests in producing oil wells as well as a large seismic library.

   Ice Man Stocks

For a printable version of the Ice Man's picks, click here.

Breakouts the Ice Man may consider trading:

BLK - 199
STRA - 180

Regular Trades the Ice Man may consider:

CEP - 37
GYMB - 34.80
NTRI - 30.70
RYL - 28
BZH - 10.85
CTX - 26.10

Depressed stocks the Ice Man may buy:

RVBD - 28.30 Gap
SYNA - 45.90 Gap
FFIV - 33.05 Gap
ANAD - 13.20 Gap
SMDI - 14.25 Gap
PLXS - 23.80 Gap
ZMH - 64
BW - 41.10 Gap * Best Bet
ANW - 36
RGR - 9
VDSI - 22.50

Extended Shorts:

ALXN - 81
VAR - 49/50
AKAM

Dollar Man Ideas:

FIRE - 9.85
CMRG - 8.15 Bid
VERT - 6

Depressed:

TNRO - 3.20 Gap
KONG - 5 Gap

Bottom Has Been Seen According To P+F Analysis...A New Buy Signal At $ 3.50;

   Ice Cold Commentators

Break Man Video Summary:

Break out buy (or short sell) watch list for short term gains October 26 includes: AKAM,  ATVI, WMB, SONS, NWL, CMED, BARE, TRCR, LRCXE.

Several candidates for break out or short sell  plays for at least short term gains by buying the break out (or selling the break down) on good volume and closing at least some on the  first day.

Swing Man Market Recap:

The market opened mixed (techs up and cyclicals down) Thursday morning on weak economic data. The SPX pulled back a few points to 1509 during the first 30 minutes.  Then a better than expected housing report seemed to stimulate buyers as the SPX climbed to 1523 within the next half hour.  Shortly thereafter, the administration levied additional sanctions against Iran. On the news, crude soared and the market began to sell off.  The market did not bottom until the SPX traded at 1500 around 2:00.  Just when it appeared the market was susceptible to further selling, buyers stepped into the mix and the market again rallied into the close.  At the close the SPX/DOW showed minimal losses whereas the NDX/Nasdaq lost approximately 1 percent.  Overall, it was another extremely choppy session that serves to frustrate traders.

After examining the index charts Thursday night, I see somewhat of a mixed picture in the market. There is a contrasting picture between the tech led NDX/Nasdaq and the SPX/MID/WLSH.  The NDX and Nasdaq are pulling back and currently trading near their respective 20 day moving averages while the other indices are down further from their recent highs testing their 50 day moving averages.  

After the market closed, Microsoft reported a solid quarter which has the stock trading up nearly 4 points.  This influential stock may help carry the market (especially the tech area) higher Friday but I still have some concerns due to the potential negative divergences forming on the NDX/Nasdaq if they were to break out tomorrow.  Thus, Friday may be another day where the tech sectors will be alright (at least early in the day), yet the overall market still must deal with strong resistance and the fact that fewer stocks are performing well.  Simply put, behind the scenes supply has overtaken demand and thus is in control at this stage.

Another concern is how the market is now reacting to certain earnings reports.  Recently, several prominent company's have seen there stocks creamed after reporting their financial results.  Until recently, if a company missed earnings they may have sold off some, but now if the company misses or guides lower their stock is taken to the woodshed.  I can list a few dozen such stocks just over the past two days.  This type of reaction by market participants shows what appears to be a change of character currently under way in the marketplace.  This occurrence is partly the result of the complacency issues that have been highlighted over the past couple of weeks.

Clearly, market participants are finding this market more difficult to successfully navigate.  To date, the major indexes are holding above their major support levels but behind the scenes the technical picture is slowly deteriorating.  With the recent whipsaw action and the concerns discussed above this is not the time to be aggressively putting money to work.  In such an environment, I suggest one maintain a large cash position and keep trading to a minimum.  

Good Trading.

   CNBC Fast Money Review

1. MICROSOFT

The headline: MSFT Soars 11% After Reporting 29% Profit Jump, Higher Outlook

Jim Goldman called MSFT´s numbers “staggering.’ The Street was looking for 39 cents per share and got 45. It looked like every business saw significant increases.

Macke pointed to Microsoft´s increase in deferred revenue, a good indicator for things to come.

Finerman said it´s not particularly expensive and it´s got “something for everybody,’ Karen Finerman said.

Adami liked MSFT for a play on DELL. The earnings blowout speaks to the worldwide PC demand cycle. Who will benefit from that more than Dell?

 2. THE TWO FACES OF TECH

The headline: EMC, VMW, MOT Surge Thursday But Chip Stocks Continue To Get Beaten Up

Macke is long EMC and INTC. The latter is an investment and will win on the PC upgrade cycle, he said. (INTC traded up 2% on the back of Microsoft´s report after hours).

Najarian says EMC has enjoyed its run thanks to the spin-off VMware, but it´s up so much that it is time to lighten up if you´re long.

Adami would buy EMC on a pullback.

3. WILDFIRES IMPACT

The headline: Allstate (ALL) Loses Ground For 3rd Day Even as California Fires Largely Come Under Control; Insured Losses From Wildfires Could Exceed $1.6B

Karen Finerman and Guy Adami both recommended ALL as the premier play, although Guy would wait until it trades to $50 before getting in.

4. FED CUTS, BUY WHAT?

If the Fed cuts next week as expected, what´s the trade right now?

Adami wouldn´t mind “dabbling’ in some C. He predicted it reach the $46 level on a Fed cut.

Macke, on the other hand, said he “wouldn´t touch C.’ None of the banks have any idea how much they will have to write down yet. He recommended staying away from the financials.

Najarian liked the asset management side of the coin – particularly names like STT and GS. But stocks like MER, LEH and BSC are too toxic.

Finerman said while it seems evident that the Fed will cut next Wednesday – Fed futures are predicting with almost 100% certainty a 25 basis point cut – a lot of the upside might already be baked into stocks, tread carefully.

5. WAFER PROFITS

The headline: WFR Surges After Hours on 66% Profit Jump, Higher Outlook

Najarian said investors who are long WFR, after underperforming for so long, should take profits now before the stock gets taken down again. That said, the solar complex continues to work with oil prices so high.

6. POPS AND DROPS

POT popped 5%: Macke: POT has a virtual monopoly on a product used worldwide. Once investors realized that, the stock went higher because a supply constriction would mean higher fertilizer prices.

ICE dropped 4%: Adami: This stock was due for a pullback. It´s worth owning whenever it´s down.

WCG dropped 63%: Adami: If the FBI invades a company you own, it is logical to get out. WCG will probably go even lower.

ZMH dropped 15%: Macke: This one won´t stay down for long.

CELG dropped 9%: Najarian: This pullback makes CELG an even more attractive takeover candidate.

7. YOUR FIRST MOVE FOR FRIDAY

Macke recommended ATVI

Adami “still likes’ INTC

Finerman would own EL

Najarian recommend UA

   News and Events Digest

Stock Split Announcement:

FLIR Systems, Inc. (Ticker: FLIR) announced that its board of directors approved a stock split.

   Upgrades and Downgrades by Sector:

Aerospace GR Goodrich Calyon Securities Price target raised Add $74 » $81
Aerospace Comm LLL L-3 Comms Friedman Billings Price target raised Mkt Perform $105 » $110
Airlines - Passenger ALK Alaska Air Calyon Securities Downgraded from Add » Neutral $30 » $26
Biotech LIFC LifeCell Roth Capital Price target raised Buy $35 » $49
Biotech IMCL Imclone Rodman & Renshaw Price target raised Mkt Outperform $55 » $62
Business Services BBSI Barrett Business Roth Capital Cut price target Buy $32 » $28
Business Services ICTG ICT Group Friedman Billings Cut price target Underperform $13 » $11
Business Services FADV First Advantage Lehman Brothers Downgraded from Overweight » Equal-weight
Business Services VSCN Visual Sciences Friedman Billings Price target raised Mkt Perform $20 » $18
Business Services NUAN Nuance Communications Broadpoint Capital Upgrade from Neutral » Buy $24
Business Services EXBD Corp Exec Bd Deutsche Securities Upgrade from Hold » Buy $75 » $85
Chemicals-Methanol MEOH Methanex CIBC Wrld Mkts Upgrade from Sector Underperform » Sector Perform
Computer Hardware AVID Avid Tech Kaufman Bros Downgraded from Buy » Hold $40 » $28
Computer Hardware ELX Emulex Friedman Billings Downgraded from Outperform » Mkt Perform $22
Computer Hardware BHE Benchmark Elec Credit Suisse Price target raised Neutral $20 » $21
Computer Hardware NTCT NetScout Systems Brean Murray Price target raised Buy $15 » $18
Computer Hardware EMC EMC Corp Broadpoint Capital Price target raised Buy $22 » $29
Computer Hardware IOM Iomega Cantor Fitzgerald Price target raised Buy $7 » $7.50
Computer Hardware NTGR NETGEAR Nollenberger Capital Price target raised Buy $36 » $39
Computer Software ORCC Online Resources CIBC Wrld Mkts Downgraded from Sector Outperform » Sector Perform
Computer Software TMWD Tumbleweed Comms Roth Capital Downgraded from Buy » Hold $2.75 » $1.90
Computer Software ULTI Ultimate Software Boenning & Scattergood Price target raised Market Outperform $34 » $38
Computer Software MFE McAfee Stifel Nicolaus Price target raised Buy $44 » $50
Computer Software MFE McAfee Credit Suisse Price target raised Outperform $45 » $47
Computer Software DRIV Digital River Credit Suisse Price target raised Neutral $43 » $47
Computer Software ULTI Ultimate Software Wedbush Morgan Price target raised Hold $31 » $34
Computer Software ORCC Online Resources Roth Capital Price target raised Buy $13 » $14
Computer Software ULTI Ultimate Software Roth Capital Price target raised Hold $28 » $33
Computer Software MCRS Micros Systems Brean Murray Price target raised Buy $66 » $69
Computer Software OMTR Omniture Friedman Billings Price target raised Mkt Perform $18 » $26
Computer Software MFE McAfee Friedman Billings Price target raised Outperform $42 » $43
Computer Software DRIV Digital River BMO Capital Markets Upgrade from Market Perform » Outperform $50 » $62
DOW-Comp Software MSFT Microsoft Friedman Billings Price target raised Outperform $38 » $40
Educational Services DV DeVRY Bear Stearns Upgrade from Peer Perform » Outperform
Educational Services DV DeVRY Piper Jaffray Upgrade from Market Perform » Outperform $31 » $60
Finance Companies MGI MoneyGram Calyon Securities Downgraded from Neutral » Reduce $25 » $17
Finance Companies ADVNB Advanta Corp Friedman Billings Downgraded from Outperform » Mkt Perform $35 » $17.50
Finance Companies BEN Franklin Resources Friedman Billings Downgraded from Outperform » Mkt Perform $149 » $134
Finance Companies JNS Janus Capital Friedman Billings Price target raised Underperform $24 » $28
Foods BG Bunge HSBC Securities Downgraded from Overweight » Neutral $103 » $126
Foods GIS General Mills Deutsche Securities Upgrade from Hold » Buy $63 » $64
Gaming Operations PENN Penn Natl Gaming Jefferies & Co Downgraded from Buy » Hold $67
Health-Beauty Prod EL Estee Lauder HSBC Securities Price target raised Overweight $47 » $53
Healthcare MTXX Matrixx Initiatives Roth Capital Cut price target Buy $26 » $22
Healthcare TRIB Trinity Biotech Roth Capital Price target raised Buy $13 » $11.50
Healthcare ALXN Alexion Pharm Broadpoint Capital Price target raised Buy $68 » $86
Healthcare ALXN Alexion Pharm Credit Suisse Upgrade from Neutral » Outperform
Healthcare Equipment BSMD BioSphere Medical Roth Capital Price target raised Buy $10 » $8
Healthcare Facilities KND Kindred Healthcare Jefferies & Co Upgrade from Hold » Buy $22 » $26
Healthcare Facilities FVE Five Star Quality Care Jefferies & Co Upgrade from Hold » Buy $8.30 » $11
Homebuilders BZP BPZ Energy Jefferies & Co Price target raised Buy $8 » $14
Homebuilders EME EMCOR Group Morgan Joseph Price target raised Buy $40 » $44
Hotels and Motels CHH Choice Hotels Wachovia Downgraded from Mkt Perform » Underperform
Household Goods NWL Newell Rubbermaid Oppenheimer Price target raised Buy $35 » $36
Industrial Equipment GGG Graco Friedman Billings Price target raised Mkt Perform $44 » $42
Industrial Equipment GDI Gardner Denver Friedman Billings Price target raised Outperform $48 » $47
Industrial Equipment CMI Cummins Credit Suisse Upgrade from Neutral » Outperform
Industrial Equipment CMI Cummins Citigroup Upgrade from Sell » Hold
Insurance WCG WellCare Group Credit Suisse Cut price target Neutral $110 » $50
Insurance CPS ChoicePoint Lehman Brothers Downgraded from Overweight » Equal-weight
Insurance MBI MBIA Inc Friedman Billings Downgraded from Outperform » Mkt Perform $80 » $50
Insurance ABK AMBAC Fincl Friedman Billings Downgraded from Outperform » Mkt Perform $90 » $50
Insurance IPCC Infinity Prpty & Casualty Ferris Baker Watts Upgrade from Neutral » Buy $46
Internet Services BIDU Baidu.com Citigroup Price target raised Buy $250 » $425
Major Pharmaceutical LLY Eli Lilly Banc of America Sec Downgraded from Buy » Neutral $64 » $56
Manufacturing CLS Celestica Credit Suisse Price target raised Underperform $5 » $6
Mining - Minerals MEE Massey Energy Stifel Nicolaus Price target raised Buy $32 » $39
Mining - Steel & Iron STLD Steel Dynamics UBS Downgraded from Buy » Neutral
Mining - Steel & Iron MEA Metalico Morgan Joseph Price target raised Buy $9 » $14
Mining Non-Ferr Metal USU USEC Inc. Wachovia Initiated at Mkt Perform
Motor Vehicles LKQX LKQ Corp Nollenberger Capital Price target raised Buy $37 » $47
Motor Vehicles LKQX LKQ Corp Barrington Research Price target raised Outperform $36 » $42
Multi-National Banks STD Banco Santander Central Citigroup Upgrade from Hold » Buy
Oil and Gas ETEL eTelecare JMP Securities Downgraded from Mkt Outperform » Mkt Perform
Oil and Gas OIS Oil States RBC Capital Mkts Downgraded from Outperform » Sector Perform
Oil and Gas DO Diamond Offshore Calyon Securities Downgraded from Add » Neutral $118
Oil and Gas GSX Gasco Energy Morgan Keegan Initiated at Outperform
Oil and Gas NFX Newfield Expl Calyon Securities Price target raised Add $54 » $58
Oil and Gas HES Hess Banc of America Sec Upgrade from Neutral » Buy
Personal Svcs-Fitness LTM LIFE TIME Fitness Piper Jaffray Downgraded from Outperform » Market Perform $60 » $64
Regional Banks SBNY Signature Bank Friedman Billings Price target raised Outperform $40 » $42
REITs CLP Colonial Properties Cantor Fitzgerald Cut price target Buy $45 » $38
REITs CLP Colonial Properties UBS Downgraded from Buy » Neutral
REITs EGP EastGroup Cantor Fitzgerald Price target raised Buy $48 » $50
Retail Trade SE Spectra Energy Wachovia Initiated at Mkt Perform
Retail Trade CC Circuit City Wachovia Initiated at Mkt Perform
Retail Trade BBY Best Buy Wachovia Initiated at Mkt Perform
Retail Trade DFS Discover Financial Services Calyon Securities Upgrade from Neutral » Buy $23
Retail Trade NILE Blue Nile Citigroup Upgrade from Sell » Hold
Sector Ticker Company Brokerage Firm Ratings Change
Semiconductors TRID Trident Microsystems Roth Capital Cut price target Buy $29 » $14
Semiconductors POWI Power Integrations Citigroup Downgraded from Buy » Hold $34 » $32
Semiconductors AXTI AXT Inc Roth Capital Downgraded from Buy » Hold $6
Semiconductors TRID Trident Microsystems Jefferies & Co Downgraded from Buy » Hold $20 » $9
Semiconductors TRID Trident Microsystems Deutsche Securities Downgraded from Buy » Hold $23 » $11
Semiconductors TRID Trident Microsystems Oppenheimer Downgraded from Buy » Neutral
Semiconductors TSM Taiwan Semi HSBC Securities Upgrade from Neutral » Overweight
Specialty Funds Ticker Company Brokerage Firm Ratings Change Price Target
Specialty Funds Ticker Company Brokerage Firm Ratings Change Price Target
Specialty Funds Ticker Company Brokerage Firm Ratings Change Price Target
Telecommunications CMCSA Comcast Kaufman Bros Cut price target Buy $30 » $27
Telecommunications CCBL C-COR.net Friedman Billings Cut price target Mkt Perform $13.75 » $13.08
Telecommunications NIHD NII Holdings Stifel Nicolaus Cut price target Buy $110 » $93
Telecommunications CMCSA Comcast CIBC Wrld Mkts Downgraded from Sector Outperform » Sector Perform
Telecommunications LVLT Level 3 JP Morgan Downgraded from Overweight » Neutral
Telecommunications TLGD Tollgrade Janney Mntgmy Scott Downgraded from Buy » Neutral
Telecommunications MOT Motorola Kaufman Bros Price target raised Buy $20 » $25
Telecommunications FDRY Foundry Ntwks Kaufman Bros Price target raised Buy $20 » $25
Telecommunications FDRY Foundry Ntwks Robert W. Baird Price target raised Outperform $20 » $25
Telecommunications SWIR Sierra Wireless Piper Jaffray Upgrade from Market Perform » Outperform $26
Telecommunications FDRY Foundry Ntwks JMP Securities Upgrade from Mkt Underperform » Mkt Perform
Telecommunications NVTL Novatel Wireless JMP Securities Upgrade from Mkt Perform » Mkt Outperform
Transportation KEX Kirby Corp Cantor Fitzgerald Price target raised Buy $53 » $55
Utilities RRI Reliant Energy Wachovia Initiated at Outperform