MOST NOTEWORTHY: Comcast, Time Warner Cable, YRC Worldwide and Syniverse were today's noteworthy upgrades:

• Soleil upgraded shares of Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) to Buy from Hold on improving fundamentals, as they believe the economic stimulus package should drive consumer demand in 2H08.
  
• Stephens upgraded shares of YRC Worldwide (NASDAQ: YRCW) to Overweight from Underweight as they believe management is making meaningful changes.
  
• Syniverse (NYSE: SVR) was raised to Overweight from Neutral at JP Morgan. The firm upgraded shares based on accelerating organic growth from consumer wireless data usage.

OTHER UPGRADES:

• Deutsche Bank upgraded NYSE Euronext (NYSE: NYX) to Buy from Hold.
  
• VASCO Data Security (NASDAQ: VDSI) was upgraded to Buy from Hold at Jefferies.
  
• Goldman upgraded Lukoil (OTC: LUKOY) to Buy from Neutral.

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Old Dominion Freight Line (NASDAQ: ODFL) is a less-than-truckload multi-regional motor carrier, providing direct service to 47 states within the South, Northeast, Midwest and West regions of the U.S.A. and to parts of Canada. Through marketing and carrier relationships, it provides service to and from the remaining states, as well as international services around the globe. The company operates a fleet of some 4,600 tractors and 17,900 trailers from nearly 200 service centers. YRC Worldwide (NASDAQ: YRCW) is a major competitor.

Old Dominion surprised the Street last week, with Q4 EPS of 42 cents and revenues of $358.7 million. Analysts had been expecting 42 cents and $345.3 million. Management also guided FY08 EPS to $2.00-$2.05 ($1.93 consensus).

The share price popped through 200-day moving average resistance on the news and has since been forming a bullish "flag" consolidation pattern. Equities frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with seven "strong buys", three "buys" and two "holds". Analysts see a 16% growth rate, through the next year. The stock's P/E ratio (15.13), PEG ratio (1.11), Price to Sales ratio (0.78), Price to Book ratio (2.22) and Price to Cash Flow ratio (7.16) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 71% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $20.31 and $33.78. A stop-loss of $26.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in the stocks mentioned above.

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Goodrich (NYSE: GR), a supplier of components, systems and services to the commercial and general aviation airplane markets, is recently up $1.14 to $68.20 on unconfirmed takeover chatter. GR has market of $8.4 billion with long term debt of $1.7 billion. GR October 70 calls have traded 41 times on transaction volume of 884 contracts above its open interest of 449 contracts. GR October option implied volatility of 29 is above its 26-week average of 25 according to Track Data, suggesting larger price risk.

YRC Worldwide (NASDAQ: YRCW), a transportation holding company with brands including Yellow Transportation, Roadway, Reimer Express, Meridian IQ, New Penn, USF Holland and USF Reddaway, is recently up $0.45 to $28.25 on unconfirmed chatter Deutsche Post has made a $41 bid for YRCW. YRCW has a market cap of $1.5 billion with $903 million in long-term debt. YRCW call option volume of 5,697 contracts compares to put volume of 319 contracts. YRCW October option implied volatility of 45 is above its 26-week average of 34 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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MOST NOTEWORTHY:

• JP Morgan upgraded Expedia (NASDAQ: EXPE) to Overweight from Neutral on expectations for U.S. bookings growth and margin stabilization.

• YRC Worldwide (NASDAQ: YRCW) was raised to Neutral from Underperform based on valuation.

• Fiserv (NASDAQ: FISV) was upgraded to Sector Outperformer from Sector Performer at CIBC following the CheckFree (CKFR) acquisition.

• Banc of America upgraded Citadel Broadcasting (NYSE: CDL), Cox Radio (NYSE: CXR) and Entercom Comm (NYSE: ETM) to Neutral from Sell as they believe it is time to cover short positions with the expected Q3 weakness likely priced into shares. They caution that this upgrade is not a buy signal as downside risk remains...

• Wachovia upgraded Cabela's (NYSE: CAB) and KBR Inc (NYSE: KBR) to Outperform from Market Perform.

• Baird raised Lear (NYSE: LEA) To Outperform from Neutral.

• Nokia (NYSE: NOK) was upgraded to Outperform from Neutral at Credit Suisse.

• Pacific Crest upgraded shares of eBay (NASDAQ: EBAY) to Outperform from Sector Perform.

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MOST NOTEWORTHY:

• BWS Financial cut Amazon.com (NASDAQ: AMZN) shares to Sell from Hold on valuation.

• YRC Worldwide (NASDAQ: YRCW) was assumed with an Underweight rating, down from Neutral, as JP Morgan is cautious on the industry's L-T-L pricing.

• UBS downgraded SanDisk (NASDAQ: SNDK) to Neutral from Buy on valuation.

• Gabelli downgraded shares of Activision (NASDAQ: ATVI) to Hold from Buy to reflect their expectation of increasing competition for some of the company's key titles.

• Royal Dutch Shell (NYSE: RDS.A) was downgraded to Underweight from Neutral at HSBC on valuation.

• Matrix believes the prolonged weakness in the housing market is eliminating economic profits and cut KB Home (NYSE: KBH) to Strong Sell from Sell...

• Citigroup and ABN Amro cut Rio Tinto Group (NYSE: RTP) to Hold from Buy.

• Merrill Lynch downgraded J.M. Smucker (NYSE: SJM) to Sell from Neutral.

• First Albany downgraded shares of Travelzoo (NASDAQ: TZOO) to Neutral from Buy.

• Matrix downgraded Constellation Brands (NYSE: STZ) to Hold from Buy.

• AG Edwards downgraded Aetna (NYSE: AET) to Hold from Buy.

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MOST NOTEWORTHY:

• Wachovia downgraded YRC Worldwide (NASDAQ: YRCW) to Market Perform from Outperform citing the challenging LTL freight environment and continued integration issues.

• UBS downgraded shares of BEA Systems (NASDAQ: BEAS) to Neutral from Buy on valuation as they believe expectations for a takeover or investor activism is already priced into shares.

• Matrix believes Isle of Capri (NASDAQ: ISLE) is expensive on a performance-adjusted basis and recommends investors sell shares into the recent rally, downgrading shares to Sell from Hold.

• JP Morgan cut Assured Guaranty (NYSE: AGO) to Underweight from Neutral on valuation.

• JMP Securities downgraded Avaya (NYSE: AV) to Market Perform from Strong Buy, as the firm doesn't expect a superior offer to the Silver Lake/TPG bid...

• MicroChip Technology (NASDAQ: MCHP) was cut to Market Perform from Outperform at Piper Jaffray.

• Morgan Stanley downgraded Wynn Resorts (NASDAQ: WYNN) to Equal Weight from Overweight.

• Baird downgraded Authorize.net Holdings (NASDAQ: ANET) to Neutral from Outperform.

• Morgan Keegan downgraded Inter-Tel Inc (NASDAQ: INTL) to Market Perform from Outperform.

• Stifel cut Dover Downs Gaming & Entertainment (NYSE: DDE) to Sell from Hold.

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YRC Worldwide (NASDAQ: YRCW) -- implied volatility and call spike on LBO speculation.
YRCW, a transportation holding company with brands including Yellow Transportation, Roadway, Reimer Express, Meridian IQ, New Penn, USF Holland and USF Reddaway, is recently up $0.49 to $40.03 on LBO speculation. YRCW will be speaking at Merrill Lynch's Transportation Conference next week. YRCW has a market cap of $2.2 billion with $1 billion in debt. YRCW reported quarterly March 2007 revenue of $2.3 billion. YRCW call option volume of 6,382 contracts compares to put volume of 207 contracts. YRCW June option implied volatility is at 44, July is at 36 above its 26-week average of 32 according to Track Data, suggesting larger price risks.

Biomet (NASDAQ: BMET) -- implied volatility-risk increases into June 8th shareholder vote.
BMET a designer, manufacturer and marketer of joint replacement products announced on 12/18/06 a consortium including the Blackstone Group, Goldman Sachs and Kohlberg Kravis Roberts will purchase BMET for $44 a share in cash. Institutional Shareholder Services recommended BMET holders vote down the $10.9 billion private equity deal. BMET shareholders are to vote on 6/8/07. Indiana state law requires a 75% vote for the acquisition to be approved. BMET over all option implied volatility of 17 is above its 5-month average of 12 according to Track Data, suggesting larger risk.

Option volume leaders today are: Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Wal-Mart (NYSE: WMT).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

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Transportation company YRC Worldwide Inc. (NASDAQ: YRCW) issued 1Q earnings news...and about the only good news was that there were any earnings at all. The numbers, however, do not tell the full story. Like all other trucking transportation companies, YRC Worldview was beset by slack demand, horrible winter weather and rising fuel costs.

In YRC's case, most of the decline in earnings was due to acquisition and reorganization charges to complete the purchase of USF Reddaway and USF Bestway. Operating revenue was $2.3 billion, not much changed from 1Q 2006 operating revenue of $2.4 billion. But operating income of $20 million for 1Q 2007 was a drop of $68 million from 1Q 2006. Diluted EPS for 1Q 2007 was $.02 compared with 1Q 2006 diluted EPS of $.71. Ouch!

The 1Q 2007 EPS figure includes $.17 per share impact due to severe winter weather, but excludes $.18 reorganization charges. It will take several more quarters for YRC Worldwide to right itself.

Given the numbers for 1Q, YRC Worldwide has revised its FY guidance. It now forecasts adjusted, diluted EPS of $4.00-$4.20 with consolidated revenue of over $10 billion. Interest expense is a best guess estimate at $90 million, with capital expenditures running $375-$400 million. The company will continue to focus on cost reduction strategies. Not surprisingly, the stock was down $.69 on the earnings news, closing recently at $38.74.

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MAJOR PAPERS:

• Barron's Online's "Inside Scoop" column reported that Hess Corporation (NYSE: HES) CEO John Hess recently bought more $1M worth of Dow Chemical Company (NYSE: DOW), and now directly owns 23,350 DOW shares.
• The Financial Times reported that the European Union is concerned that Google Inc (NASDAQ: GOOG) may be skirting European privacy laws by keeping data on Internet searches for too long.

• The U.S. Navy awarded an $11.9M contract to Force Protection Inc (NASDAQ: FRPT) to build and deliver 14 next-generation armored vehicles, according to the Associated Press.
• From BusinessWeek's "Inside Wall Street" section:
  
• In spite of its problems, Amgen Inc (NASDAQ: AMGN) is a long-term value play, according to Joseph Battipaglia, chief investment officer at Ryan Beck's Washington Crossing Advisors unit.
• Bioenvision Inc (NASDAQ: BIVN) is attracting big investors because the company has teamed up with biotech biggie Genzyme Corporation (NASDAQ: GENZ) to develop clofarabine, a treatment for leukemia in children.
  
• Big truckers see YRC Worldwide Inc (NASDAQ: YRCW) as a tempting asset play with "compelling earnings power and potential value," according to Justin Yagerman of Wachovia Securities.

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The morning opened lower as first quarter GDP came in at 1.3% annual rate. GDP numbers are one of the significant indicators to pay attention to. With the housing slowdown, the total economy -everything we make- grew at a 1.3% annual rate. Normally economists like to see that number between 3-4% rate. Since the growth rate is still positive, we are not in a recession, but it is down significantly from 2.2% last quarter and below the 25 year average of 3.1%. They still get to revise the GDP one more time in about a month, so we will see what happens then.

The NYSE had volume of 2.7 billion shares with 1,396 shares advancing while 1,834 declined for a loss of 10.13 points to close at 9,705.36. On the NASDAQ, 2.1 billion shares traded, 1,168 advanced and 1,834 declined for a gain of 2.75 to 2,557.21.

Stocks moving today included: Cummins (NYSE: CMI) jumped $10.15 (12%) to $96.14 on earnings. YRC Worldwide (NASDAQ: YRCW) skidded down $3.97 (-9%) to $41.77 on lower shipping profits. Continental Airlines (NYSE: CAL) lost altitude of $2.53 (-7%) to $36.25 on a downgrade. The Goodyear Tire (NYSE: GT) rose $1.91 (6%) to $34.41 after announcing it will be closing more plants. OfficeMax (NYSE: OMX) fell $2.10 (-4%) to $49.31 on a downgrade.

In options there were 4.1 million puts and 4.8 million calls traded for a put/call open interest ratio of 0.84. General Electric (NYSE: GE) moved volume on the May 37.50 calls (GEES) with over 48,000 contracts and also had action of the June 37.50 calls (GEFS) with over 32,000 options. Microsoft (NASDAQ: MSFT) rose 3.5% on higher software sales and saw volume on the May 30 calls (MSQEK) with 43,000 contracts and the January 30 calls (WMFAF) with 33,000 contracts. Tyco International (NYSE: TYC) traded July 27.50 calls (TYCGY) over 24,000 times.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.

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• CA World 2007 to be held in Las Vegas
• L-3 Communications Holdings, Inc. (NYSE: LLL) to report Q1 earnings, conference call at 10 a.m.

• Defense companies Lockheed Martin Corp. (NYSE: LMT) and Northrop Grumman Corp. (NYSE: NOC) to report Q1 earnings.
• Low-cost airline Jetblue Airways Corp. (NASDAQ: JBLU) to report Q1 earnings. Will Jetblue follow Southwest Airlines Co.'s (NYSE: LUV) disappointing report (which caused two analyst downgrades)? Or is the recent increased investment buy George Soros a sign that Jetblue is doing better?
• Alternative Energy Conference, hosted by Friedland Investment Events, to be held in NY.

• The Boeing Co. (NYSE: BA) to report Q1 earnings; conference call at 10:30 a.m. Will Boeing discuss Airbus's decision to halve the price of its A350 planes in order to become more competitive with Boeing's 787 Dreamliner?
• Market darling Apple Inc. (NASDAQ: AAPL) will also report Q2 earnings, conference call at 5 p.m.

• XM Satellite Radio Holdings, Inc. (NASDAQ: XMSR) to report Q1 earnings; conference call at 10 a.m. Investors will look for any comments relating to the state of the potential merger with Sirius Satellite Radio Inc. (NASDAQ: SIRI).

• YRC Worldwide, Inc. (NASDAQ: YRCW) to report Q1 earnings; conference call at 9:30 a.m.

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MOST NOTEWORTHY:

• Prudential started YRC Worldwide Inc (NASDAQ: YRCW) with an Underweight rating and $41 target. The firm said recent organizational changes could be a distraction in what it expects to be a challenging first-half of 2007.

• Susquehanna views Baidu.com Inc (NASDAQ: BIDU) as a strategic holding in its China portfolio and expects the company's massive brand value to drive continuous growth; shares were initiated at Susquehanna with a Positive rating.

• Oppenheimer initiated three e-commerce names today:
  
• eBay Inc (NASDAQ: EBAY) was initiated with a Buy rating and $38 target
• Overstock.com, Inc (NASDAQ: OSTK) and Amazon.com, Inc (NASDAQ: AMZN) were initiated with Neutral ratings.

• In addition to YRC Worldwide, Prudential initiated several companies in the transportation sector:
  
• Con-Way Inc (NYSE: CNW) was started with an Underweight rating and $47 target
  
• Canadian Pacific Railway (NYSE: CP) and Norfolk Southern (NYSE: NSC) were initiated with Overweight ratings
  
• Canadian National Railway (NYSE: CNI) was initiated with a Neutral rating and $47 target.

• Jefferies initiated Forest Oil Corp (NYSE: FST) with a Buy rating and $42 target.

• Citigroup believes aQuantive, Inc (NASDAQ: AQNT) will be one of the key beneficiaries of the strong secular growth in online advertising and they note that shares are trading in the lower half of its 52-week range; shares were initiated with a Buy rating and $33 target.

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I've been reading the January 2007 issue of Material Handling Management. In this issue, there is a fine article by Tom Andel that discusses the current realities regarding hydrogen fuel cell use in commercial operations utilizing lift truck fleets. The MHM article brings home some truths of just how close we are to finally beginning the replacement of currently accepted methods of providing the energy to operate various industrial equipment. Consumers (and investors), sometimes don't realize that when it comes to heavy duty technology conversions in our day to day world, most often those changes are implemented and perfected on the industrial side well before the consumer side gets its hands on them. Such seems to be the case in the matter of hydrogen fuel cells.

MHM research suggests that while increasing improvements are still being aggressively sought, hydrogen fuel cell technology has reached the point of being completely practical in replacing some of today's current energy provision systems. The single largest hurdle that developers are addressing is in making the technology more economical. With current incentive programs for energy provision change over, it's almost a dead heat between hydrogen fuel cells and current methods in use. Developers have already begun their marketing programs while the scientists and engineers continue to push towards their goals for economical hydrogen deployment absent of outside financial incentives. Their goal is to make hydrogen fuel cell technology a stand alone proposition.

Lift truck manufacturers are operating in concert with fuel cell and battery manufacturers to find winning options in energy provision systems. There are design teams which are focusing on complete battery displacement systems and there are other developers who are seeking a hybrid solution which blends fuel cell utilization with current battery technology. Already, Toyota Motor Corp. (NYSE:TM) has developed a fuel cell lift truck model FCHV-F, which utilizes a "drop in" hydrogen fuel cell module. From all appearances, the module would seem to be shaping up as a total battery replacement.

Engineers are still tackling issues surrounding the control of current flow and the power increases needed for constant heavy lifting. The power delivered by hydrogen fuel cell units seems more suited to continuous loads at lower levels, whereas batteries can quickly deliver heavy power surges with total user control. Based on what I've seen and read it appears to me that fuel cells for now will require an associate battery to assist in delivering the power range and control that lift trucks require. The battery would deliver the current and the fuel cell would work as an on board recharging system. Lift truck fleets would then be freed from the downtimes and dangers of routine daily battery change out.

In an investment sense I would consider hydrogen fuel cells as an excellent long term strategy play. The technology is far enough along for me to believe that it will be fully successful. There are some big players in the game and there is a very hard push forward. Hydrogen fuel cells are real, my friends, and their use should become commonplace in the not so distant future. I see fuel cells as having a significant future in the industrial workplace. The question still remains, will hydrogen fuel cells become practical technology for the automobile? My answer is: I just don't know.

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MOST NOTEWORTHY:

• YRC Worldwide Inc (NASDAQ: YRCW) was downgraded by Credit Suisse to Neutral from Outperform and to Underperform from Neutral at Baird, both citing valuation.

• AutoLiv Inc (NYSE: ALV) was downgraded to Sell from Hold at Citigroup with a $55 target to reflect North American production schedules concerns as well as the possibility of a slower-than-anticipated share buyback program.

• Chevron Corp (NYSE: CVX) was downgraded to Sell from Hold at Deutsche Bank with a $65 target, citing valuation.

• Pali Capital downgraded Warner Music Group Corp (NYSE: WMG) to Sell from Neutral, with a $19 target. The firm believes estimates are too aggressive and Warner shares are now overvalued.

• JP Morgan downgraded shares of Electronic Arts Inc (NASDAQ: ERTS) to Neutral from Overweight, citing valuation.

• Sanders Morris downgraded Playboy Enterprises (NYSE: PLA) to Hold from Buy, as they believe there is little visibility in the marketplace as to the timing of a Time Warner-based (TWX) SVOD agreement. The broker thinks management will issue below the consensus' 2007 guidance, or none at all, which they think will trigger bearish sentiment.

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MOST NOTEWORTHY:

• Goldman Sachs upgraded shares of Nokia Corp ADS (NYSE: NOK) to Buy from Neutral and added the company to their Conviction Buy List. Goldman believes Nokia's profit cycle has bottomed and shares could rebound from current levels. In addition, the broker expects Nokia to report solid fourth-quarter earnings.

• JP Morgan upgraded Sirius Satellite Radio (NASDAQ: SIRI) and XM Satellite Radio Holdings 'A' (NASDAQ: XMSR) to Overweight from Neutral as they believe retail and competition fears are largely understood and that both companies will grow subscribers due to deals with automakers.

• Wachovia upgraded YRC Worldwide (NASDAQ: YRCW) to Outperform to Market Perform citing the trucker's recent realignment actions in its regional and long-haul LTL's, the timing cycle to buy trucking stocks and valuation.

• JP Morgan upgraded shares of FedEx Corp (NYSE: FDX) to Overweight from Neutral, citing valuation.

• Prudential upgraded Abercrombie & Fitch Co 'A' (NYSE: ANF) to Overweight from Neutral and raised their target to $89 from $66, citing valuation and easier comps.

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MAJOR PAPERS:

• Barron's Magazine (subscription required) highlighted a number of possible M&A targets, along with a few stocks it believes to be undervalued:
• M&A is expected to continue in Europe: possible large cap targets include Barclays (NYSE: BCS), Deutsche Telekom (NYSE: DT), Deutsche Bank (NYSE: DB), ABN Amro (NYSE: ABN), Volkswagen (OTC: VLKAY), Koninklljke (NYSE: KPN) and Swisscom (NYSE: SCM); possible small-mid cap targets include Hellenic Telecom (NYSE: OTE).
  
• There may still be upside in shares of Xerox (NYSE: XRX), says James Benson, a partner and securities analyst at Harris Associates.
• Shares of YRC Worldwide (NASDAQ: YRCW) may be undervalued by as much as 50%, says Barron's "Bottom Line," which writes that shares could climb above $60.
• The Wall Street Journal (subscription required) featured an article on Pfizer's new CEO and his strategic plan.
• Pfizer's (NYSE: PFE) new CEO, Jeffrey B. Kindler, is preparing to detail his strategic vision for the company that will likely involve more job cuts.
• Hewlett-Packard (NYSE: HPQ) is claiming a nanotechnology research breakthrough that would bring big benefits in performance.
• According to a Nomura report, Sony Corp (NYSE: SNE) will reach only 75% of its global target for PlayStation 3 sales this fiscal year through March.
• The New York Times had an article highlighting the possibility of New York funding stem cell research.
• New York Governor Eliot Spitzer called for the passage of a $2B 10-year bond initiative for research and development, at least half of which would be set aside to pay for stem cell research.
• Citigroup (NYSE: C) may shorten its name to Citi and drop its umbrella logo.

• The UK Times wrote that Ford (NYSE: F) may have trouble selling its Aston Martin unit after potential buyers found problems in the divisions books while doing due diligence.
• El Pais wrote that Fidel Castro is in "very grave" condition after three failed operations and complications from an intestinal infection known as diverticulitis.

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MOST NOTEWORTHY: Circuit City (CC), Best Buy (BBY) and Eli Lilly (LLY) top today's list of downgrades.

• Prudential downgraded Circuit City Stores Inc. (NYSE:CC) to Underweight from Neutral, with a $22 target, citing concerns of flat-panel TV price erosion and the high cost structure as compared with Best Buy and other retailers.
• In addition, Best Buy Co., Inc. (NYSE:BBY) was also downgraded by the firm to Neutral from Overweight with a $50 target, citing third-quarter margins that were below expectations.
• Credit Suisse removed Eli Lilly & Co. (NYSE:LLY) from their U.S. Focus List.

OTHER DOWNGRADES:

• Deutsche Bank downgraded L-T-L transporters JB Hunt Transportation Services Inc. (NASDAQ:JBHT) and YRC Worldwide Inc. (NASDAQ:YRCW), citing valuation.
• Sirius Satellite Radio Inc. (NASDAQ:SIRI) was downgraded at Bernstein to Market Perform from Outperform, based on the lower subs forecasts and the fact that Sirius is more reliant in the retail after-market than competitor XM Satellite Radio Holdings Inc. (NASDAQ:XMSR).
• AG Edwards downgraded Micron Technology Inc. (NYSE:MU) to Sell from Hold, citing the DRAM pricing risk; the firm said prices are currently running at more than twice its projected trend and it sees a risk of a correction in the next few months.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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MOST NOTEWORTHY: Advanced Micro Devices (AMD), YRC Worldwide (YRCW), the Aerospace & Defense Sector and General Dynamics (GD) top today's massive list of downgrades.

• Advanced Micro Devices, Inc. (NYSE: AMD) was downgraded to Underweight from Equal Weight at J.P. Morgan. The downgrade was due to the continued price war with Intel (INTC). They also believe AMD's margins will drop to the 40% range next year and that Intel has better products.
• YRC Worldwide, Inc. (NASDAQ: YRCW) was downgraded at Stephens to Equal Weight from Overweight citing the pace of 2007 industrial activity.
• The Aerospace & Defense Sector was downgraded by Credit Suisse to Market Weight from Overweight on valuation.
• Credit Suisse also downgraded General Dynamics Corp. (NYSE: GD) to Neutral from Buy citing margins nearing its peak at their Combat and IS&T segments while research and development costs are up at Gulfstream. In addition, Credit Suisse cited headline risk from upcoming elections for their stance on General Dynamics.

OTHER DOWNGRADES:

• Raymond James downgraded several Restaurants:
  • Applebee's International, Inc. (NASDAQ: APPB), Darden Restaurants Inc. (NYE: DRI), OSI Restaurants Partners, Inc. (NYSE: OSI), Ruby Tuesday, Inc. (NYSE: RI) and P. F. Chang's China Bistro, Inc. (NASDAQ: PFCB) to Underperform from Market Perform
  • and Cheesecake Factory (CAKE) to Market Perform from Outperform.
• Deutsche Bank downgraded Tyson Foods, Inc. (NYSE: TSN), citing lower beef capacity and concerns over margins.
• Finally, St. Jude Medical, Inc. (NYSE: STJ) was downgraded to Market Perform from Outperform at Piper Jaffray. The firm does not expect any significant share appreciation until there is better visibility into ICD growth rates, which it expects in the first half of 2007.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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