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Updated 31-May-11

Upgrades

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

General Dynamics

GD

Suntrust

Neutral » Buy

$84

Texas Roadhouse

TXRH

KeyBanc Capital Mkts

Hold » Buy

$21

Energen Corp.

EGN

Capstone

Hold » Buy

$72

Camelot Information Systems

CIS

Susquehanna

Neutral » Positive

Broadcom Corp.

BRCM

BMP Capital

Market Perf » Outperform

$40 » $50

NVIDIA Corp.

NVDA

Auriga

Hold » Buy

AerCap Holdings

AER

JP Morgan

Neutral » Overweight

$16 » $18

eBay Inc.

EBAY

ThinkEquity

Hold » Buy

$36 » $38

Goldman Sachs

GS

JP Morgan

Neutral » Overweight

$175

Last week, Moody's Investors Service said that its ratings for Boeing Co. and General Dynamics Corp. will not change because of a Supreme Court ruling this week on a contract dispute between the two companies and the government. The Supreme Court on Monday unanimously threw out court decisions that would have helped the federal government and both companies. The companies were supposed to build 850 A-12 Avenger attack planes. The order was canceled by the Pentagon based on claims that the companies failed to meet the terms of the contract. The Supreme Court decision means Boeing (NYSE:BA) and General Dynamics don't immediately have to repay the government $1.35 billion, plus more than $2.5 billion in accumulated interest, after the Pentagon declared the companies in default on the contract.

On May 19, 2011, Texas Roadhouse, Inc.'s Board of Directors authorized the payment of a cash dividend of $0.08 per share of common stock. This payment will be distributed on July 1, 2011, to shareholders of record at the close of business on June 15, 2011. While no assurance can be made regarding the declaration of and/or payment of future cash dividends, the Company is optimistic that similar payments will be authorized in subsequent quarters and that the dividend amount might increase annually as cash flow increases.

Energen Corporation, an energy holding company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the continental United States. It is also involved in the purchase, distribution, and sale of natural gas to residential, commercial, and industrial customers, as well as other end-users of natural gas in central and north Alabama. In addition, the company provides gas transportation services for industrial and commercial customers located on its distribution system. As of December 31, 2009, Energen Corporation had proved oil and gas reserves of 1,547 billion cubic feet equivalent in the San Juan Basin in New Mexico and Colorado, the Permian Basin in west Texas, and the Black Warrior Basin in Alabama.

Last week Camelot announced a $20 million stock buyback program. The company issued a press release explaining a large number of accounts with small balances and provided a copy of a Citibank statement that accounts for 73% of its cash, unaudited cash flow statements for the first quarters of 2011 and 2010, and an unaudited list identifying the cash balance and location of each of its bank accounts. Despite the information being unaudited -- and questions about the quality of audited financial statements of Chinese companies -- investors are comforted by the additional information.

Broadcom Corporation designs, develops, and supplies semiconductors for wired and wireless communications. It provides a portfolio of system-on-a-chip and software solutions, which enable the delivery of voice, video, data, and multimedia content to mobile devices; consumer electronics devices in the home; and business networking products for the workplace, data centers, service providers, and carriers. The company serves the manufacturers of computing and networking equipment, consumer electronics and broadband access products, and mobile devices. Its broadband communications products include solutions for digital cables, satellite and Internet protocol (IP) set-top boxes, and media servers; cable and digital subscriber line modems and residential gateways; high definition televisions; high definition Blu-ray Disc players; and digital video recorders.

Microsoft (NASDAQ:MSFT), the world’s largest software maker, will showcase the interface running on hardware with an Nvidia Corp. (NASDAQ:NVDA) Tegra chip, the people said last week, declining to be identified because the plans are confidential.

AerCap Holdings N.V. (NYSE:AER) announced at a recent annual General Meeting of Shareholders that it has approved the appointment of Mr. Aengus Kelly to succeed Mr. Klaus Heinemann as CEO and Member of the Board of Directors, effective from May 18, 2011. Mr. Heinemann, who had chosen not to renew his contract as CEO and Member of the Board of Directors of AerCap Holdings N.V., has also retired as a Member of the Board of Directors.

Google Inc. said it will defend itself against allegations that it hired a former PayPal Inc. executive as part of a play to misappropriate trade secrets from PayPal’s mobile-payment business. “Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy,” Aaron Zamost, a Google spokesman, said in an e- mailed statement. “We respect trade secrets, and will defend ourselves against these claims.”

Osama Bedier, a former executive at EBay Inc. (NASDAQ:EBAY)’s PayPal unit and now at Google, stole PayPal’s confidential information, the company said in the lawsuit filed May 26 in state court in San Jose, California. Stephanie Tilenius, another ex-PayPal executive now at Google, violated contractual obligations by recruiting Bedier, PayPal claimed. Bedier “is now leading Google’s efforts to bring point-of- sale technologies and services to retailers on its behalf,” according to the complaint. “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”

The most notable "call" on Tuesday was JPMorgan's upgrade of Goldman Sachs (NYSE:GS) from NEUTRAL to BUY. Goldman, of course, has been decimated by the general selloff in financials, and specific negative newsflow. Tuesday’s call by analyst Kian Abouhossen, rests on a few points. He writes: "We had a group meeting with GS Vice chairman and Co-CEO of GS Intl. Michael Sherwood, and conclude the firm’s strategy is clear and recent negative newsflow impact on franchise over-discounted. Based on our own analysis we see material re-leveraging potential."

Downgrades

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

Medtronic Inc.

MDT

Argus

Hold » Sell

Ruby Tuesday Inc.

RT

Suntrust

Buy» Neutral

$6 » $4

Taser International

TASR

JP Morgan

Neutral » Underweight

$5

GlaxoSmithKline

GSK

Goldman Sachs

Neutral » Sell

M.D.C. Holdings

MDC

JMP Securities

Mkt Outperform » Mkt Per

NVR Inc.

NVR

JMP Securities

Mkt Outperform » Mkt Per

Medtronic Inc.(NYSE:MDT) Director Jack W. Schuler acquired 25,000 shares of this medical appliances & equipment company, paying $40.70 per share for a total amount of $1.02 million. Mr. Schuler increased his stake by 5.07% to 518,267 shares with this purchase. You can view the list of recent insider transactions for Medtronic, Inc. here.

Results for the company's fiscal fourth quarter were u-g-l-y, and it didn't have ... OK, so it did have an alibi, but it wasn't particularly convincing. Management said that severe winter weather affected its results more than competitors because of Ruby Tuesday's concentration on the Eastern part of the country. In addition, new investments hurt the bottom line. What investments, you ask? A prime one cited was the company's new "fresh bread program." So, perhaps we can blame it on the grain. (Rimshot!) Earnings per share for the quarter -- excluding accounting gains and losses -- were $0.24, versus $0.28 last year and analyst estimates of $0.31.

TASER International, Inc., a global provider of safety technologies that prevent conflict, protect life, and resolve disputes, on Tuesday announced that it has prevailed in vacating three of the four monetary awards that were appealed to the Ninth Circuit Court of Appeals in the case of Heston v. TASER International, Inc., City of Salinas, et al., N.D. Cal. Case No. C 05-03658 JW.

The Heston case received international attention in June 2008 as the first and only adverse verdict against TASER International related to the use of its products. The Company has been successful in getting dismissals in 127 other product liability lawsuits. The jury apportioned 85 percent of the responsibility for the death of Mr. Heston to his use of toxic methamphetamines and related factors, and 15 percent to TASER International. The jury awarded Plaintiffs $5.2 million in punitive damages, and compensatory damages of $1,000,000 to Mr. Heston's parents and $21,000 to his estate. The compensatory damages were reduced to $150,000 and $3,150 respectively due to the 85 percent contributory negligence of Mr. Heston.

Potiga has been developed by GlaxoSmithKline (NYSE:GSK) and Valeant Pharmaceuticals (NYSE:VRX). Potiga is a fairly well developed drug, but it has several problems that investors need to be aware of. The good news for Potiga is that it can help the 30% of patients that do not respond to current drugs; which means doctors may decide to prescribe the drug to many patients. However, due to the FDA advisory committee Potiga might only be used as an effective add-on treatment for seizures. Therefore Potiga will not be solely prescribed to patients.

MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas,Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley, Jacksonville andSeattle. The Company's subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively.

According to 13F filings, Lykouretzos' Hoplite Capital Management had at least 38 securities in its portfolio as of March 31, 2011. Currently his long-term investments are NVR Inc. (NYSE:NVR), SBA Communications Corp. (NASDAQ:SBAC), Sherwin Williams Co (NYSE:SHW) and Berkshire Hathaway (NYSE:BRK.A). He has been holding all these stocks for the last three years.

Coverage Initiated

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

Tesoro Logistics

TLLP

Credit Suisse

Outperform

$28

Responsys Inc.

MKTG

Credit Suisse

Outperform

$22

AEterna Zentaris

AEZS

Needham

Buy

$5

Websense Inc.

WBSN

Citigroup

Hold

$25

Sourcefire Inc.

FIRE

Citigroup

Buy

$32

Fortinet Inc.

FTNT

Citigroup

Hold

$52

TLLP will operate pipelines, maintain terminal facilities, perform trucking duties, and supply tank storage. These activities are officially lumped into two categories: 1. Terminalling, Transportation and Storage, and 2. Crude Oil Gathering. These functions are often looked upon as mundane and boring. For some of us, this is exactly what we seek in companies who provide regular and growing income flows! As long as TSO is refining products, TLLP will be active in the fee-based business. TLLP receives a fee based upon the function it performs for TSO's refined products.

Responsys, Inc. (NASDAQ:MKTG) , the leading provider of email and cross-channel marketing solutions, recently announced that Dan Springer, Chief Executive Officer of Responsys, was recognized by the San Francisco Business Times as Best CEO at a company with revenue under $100 million in 2010.

At its second annual Tech and Innovation Awards, the San Francisco Business Times honors the Bay Area's most innovative and enterprising technology companies and entrepreneurs that are fueling the local economy, attracting VC funding and growth capital, adding jobs, and transforming every area of technology from social media to gaming and mobile applications. The judging panel selected an exceptional group of 25 finalists in 12 categories out of hundreds of nominations to help shine the spotlight on a fascinating group of companies leading innovation and job creation in the Bay Area.

Aeterna Zentaris Inc. (NASDAQ:AEZS) last week announced that its Senior Vice President and CFO, Dennis Turpin, CA, will make a corporate presentation at the upcoming BioFinance 2011 Conference on Wednesday, June 1, 2011, at 10:00 a.m. (Eastern time) in Room 1 of the St. Andrew's Club & Conference Centre in Toronto, Canada. Aeterna Zentaris is a late-stage oncology drug development company currently investigating potential treatments for various cancers including colorectal, multiple myeloma, endometrial, ovarian, prostate and bladder cancer. The Company's innovative approach of "personalized medicine" means tailoring treatments to a patient's specific condition and to unmet medical needs. Aeterna Zentaris' deep pipeline is drawn from its proprietary discovery unit providing the Company with constant and long-term access to state-of-the-art therapeutic options.

After trudging through almost all stocks involving the cloud, I've found the most intriguing way to profit seems to be a little company called Websense Inc. (NASDAQ:WBSN)-- the business behind the business, if you will. Until this point it seems the company has been overlooked because there hasn't been a thorough enough analysis of the nuances and niche markets within the cloud. WBSN protects data in the cloud. Its most exciting product, Triton, essentially keeps the good stuff in and the bad stuff out. Besides being the most advanced product of its kind, Triton has been a smashing success financially as well. Triton brought in $34.4 million in revenue in the first quarter of 2011, a 42% increase year over year, and we can expect to see those numbers increase as we progress further into 2011. Oh, and Triton also won Best Content Security at 2011 SC Magazine Awards Europe

Sourcefire, Inc (NASDAQ:FIRE), the creator of Snort® and a leader in intelligent cybersecurity solutions, recently announced that it has won the Outstanding Growth Company award from the Association for Corporate Growth National Capital chapter. As part of the 2011 Corporate Growth Awards program, Sourcefire was the winner among companies with $100 to $500 million in revenue. “Sourcefire is dedicated to providing customers with technology that protects them from attacks against their most critical information, and this focus has helped fuel our success and growth,” said John Burris, CEO at Sourcefire. “This award from ACG further validates our commitment, and we are proud to be recognized as a company driving this region’s vibrant economy.”

Fortinet (NASDAQ:FTNT), a leading network security provider and the worldwide leader of unified threat management (UTM) solutions -- announced on Tuesday that worldwide customers are using Fortinet's FortiClient Endpoint Security Suite to provide broad endpoint security. With the rise in mobile workers, it's more important than ever to help ensure that laptops and mobile devices are protected by an endpoint security solution that provides advanced security features in a uniquely modular endpoint solution. The solution also needs to allow users to load only the functionality that they require for optimized performance. Fortinet customers around the globe are deploying FortiClient™ Endpoint Security in their environment to help protect their most critical assets including: Accuity, AgroBank, Buongiorno, Ecofis, Electricity Authority of Cyprus, Laredo Independent School District, Lincoln Property Company and SFR Business Team.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Upgrades, Downgrades and Initiations for Tuesday