Market Outperform - Price 7.77 on Jan. 2 by JMP Securities ACTU's board authorized change-of-control severance agreements with seven key executives...[which we've observed may mean a] possible sale....On average, a company was sold five months after [such] agreements were put in place. We look for 4Q non-GAAP earnings per share of 10 cents, in line with consensus. We look for 2008 non-GAAP EPS of 39 cents, 1 cent above consensus. Our 9 target puts Actuate at an '08 price/earnings ratio of 23, in line with peers...[Actuate makes business-management software]. Market-cap: $539 million.

Underperform - Price 7.60 on Jan. 2 by Hilliard Lyons Centerline Holding (formerly CharterMac) originates and acquires tax-exempt bonds for affordable multifamily housing and generates revenue from related fee-based businesses. On Dec. 28, we downgraded CHC from Neutral to Underperform...due to its announcement of major changes we believe aren't in the best interest of our long-suffering, income-oriented clients. We're dropping coverage. [The] change in...strategy, significant dividend cut, and potential conflict of interest in offering an expensive convertible preferred to The Related Companies, owned by CHC's chairman, makes CHC no longer suitable for our investors...CHC's annual dividend will be cut 64%....CHC stock declined 64% in 2007. Previously, we had encouraged tax-loss selling. Market-cap: $444.1 million.

Outperform/Speculative - Price 49.71 on Jan. 2 by Morgan Keegan We think rising consensus estimates based on the recently closed acquisition of Andrew could serve as a catalyst for the stock. Our new model reflects conservative estimates and a gradual ramp of deal synergies. We consider our new model, which yields 10% earnings accretion in 2008, conservative. At a moderate 17 times our [calendar-year] '08 EPS estimate of $3.35, the stock [of this communications-equipment firm] could be valued at 57. Market-cap: $3.03 billion.

Outperform - Price 18 on Jan. 2 by Raymond James Partners Making its first acquisition as a publicly traded partnership, Encore Energy Partners announced a $250 million purchase from its parent, Encore Acquisition (EAC)...The acquisition is being funded half with debt and half with equity...the parent company's ownership of ENP will increase to 68%...Our 25 target is based on an 11 times multiple to our new '08 Ebitda estimate, which we believe is justified given ENP's low operational risk, growth opportunities...and a stout yield. Our target offers hefty total return potential of 50%+ from current levels... Market-cap: $581 million.

Buy - Price 4.60 on Jan. 2 by Singular Research Hayes is the global market leader in steel wheels [for cars and trucks] and a top competitor in aluminum wheels...GAAP profitability is around the corner as major restructuring and related charges come to an end. Earnings power has been masked by nonrecurring charges, and debt/equity [ratio] has improved to 2.9 times in the most recent quarter, from year-ago 4.1 times...[its focus is] on expanding in high-growth/low-cost regions. Risks include: global economic slowdown; delays in expansion projects/cost overruns; [and] political and currency risk. Estimated market-cap: $465 million.

Market Perform - Price 73.15 on Jan. 2 by Friedman Billings Ramsey Including previously disclosed charges, Legg Mason now expects total charges of $89.7 million ($22.2 million after tax, net of revenue sharing), or 15 cents per share this quarter related to structured-investment-vehicle exposure in its liquidity funds. To reflect the SIV-related charges and taking a more conservative view on flows going forward, we're lowering our [fiscal-year] '08 earnings estimate by 12 cents to $4.98 a share and reducing FY09 estimates by 8 cents, to $5.65. Market-cap $9.8 billion.

Health-Care Sector Focus List - Price 25.92 on Jan. 2 by H&R Block Medicis is a leader in the U.S. dermatology market. [We believe that] having exceeded Street expectations for five of the last seven quarters, the company's consensus projected EPS estimate for 2008 of $1.54 (+26% versus '07) could prove conservative, should Reloxin [an anti-wrinkle treatment] be approved sooner than the anticipated 10-month regulatory review...The sales potential from Reloxin [is] significant [if] the product garner[s] just 20% of the market. And the shares' multiple of 23 times is at the low end of its historical range. Market-cap: $1.5 billion.

Strong Speculative Buy - Price 3.25 on Jan. 2 by Dutton Associates Minrad, an interventional pain-management company [focused on] anesthesia and analgesia, real-time-image guidance, and conscious sedation...[makes] inhalation anesthetics, including...Sevoflurane. In '06, about 99% of revenue was generated by sales of anesthesia/analgesia products; [BUF] has launched a second generation of ...image-guidance technology products and is developing a [new] conscious-sedation delivery system. [We] project a more-than-tripling of revenue in '08, to about $55 million, mainly [on] sharply higher Sevoflurane sales and net profit [of] $3.8 million/8 cents a share. Target: 5.25. Market-cap: $158 million.