AG Edwards initiates Conexant Systems (CNXT) with a Buy and $4.50 target. They believe the company should be able to take share in Broadband Media Processing and analog modems, are well positioned for the VDSL2 transition and believe pro forma operating margins will improve.
Security software company McAfee (MFE) fired its chief lawyer in connection with employee stock option grants while three other companies reported further fallout from an expanding government probe into the practice. McAfee said its board dismissed the company's general counsel, Kent Roberts, after an internal review found that he was involved in an improper stock option grant episode in 2000. McAfee is investigating its prior practices regarding stock options grants and last week said it was engaged in "an informal dialogue" with U.S. securities regulators over grants made in the past decade.
Advanced Micro Devices (AMD), Intel Corp.'s (INTC) only competitor in personal computer microprocessors, expects some personal-computer makers to soon begin selling systems based on a new group of technologies for managing digital media in the home. Hewlett-Packard Co. (HPQ), Gateway Inc. (GTW) and Acer Inc. are among companies that will begin offering "AMD Live!'' next month.
F5 Networks (FFIV), which makes products to manage Internet traffic, gained after Citigroup Investment Research upgraded its F5 rating to "buy'' from "hold.''
Morgan upgraded Research in Motion (RIMM) to Overweight based on valuation.
Symantec (SYMC) has repaired a serious problem with versions of its leading antivirus software, which protects some of the world's largest corporations and U.S. government agencies. The flaw lets hackers steal sensitive data, delete files or implant malicious programs.
Microsoft (MSFT) plans to start selling Windows OneCare Live today, three years after it announced its intent to move into the antivirus arena. OneCare combines antivirus, anti-spyware and firewall software with backup features and several tune-up tools.
ADC Telecommunications (ADCT) agreed to acquire Andrew Corp. (ANDW) in a stock swap valued at about $2 billion. The deal would create a network-infrastructure company with annual sales of about $3.3 billion.