Cash Systems - CKNN-NNM Buy - Price 5.01 on Nov. 13 by Merriman Curhan Ford Gaming Laboratories International approved the powercash operating system-a joint-venture product between Cash Systems, Bally Technologies and privately held Scotch Twist. Powercash gives casino customers access to credit, debit and checking-account funds directly from the gaming device (without having to find an ATM machine)...CKNN shares trade at only 8.6 times our full-year 2008 Ebitda estimate of $11.1 million, a discount of 16% to the average 10.2 times for gaming-equipment group. Given CKNN's disruptive technology and high-margin revenue [potential]...we believe premium multiple of 12 to 14 times is achievable -- for potential $6 to $7 range.

Cognos - COGN-NNM Market Perform - Price 57.24 on Nov. 13 by JMP Securities Downgrading from Strong Buy to Market Perform: Cognos [agreed to be] acquired by IBM for 58 a share, a 9% premium to Nov. 9 closing price, a $5.2 billion market cap, and a $4.8 billion enterprise value. We think IBM is paying a solid multiple for Cognos...the acquisition represents 4.1 times EV/08 revenue versus 3.1 times multiple SAP [paid] for Business Objects at announcement.

DivX - DIVX-NNM Buy - Price 18.32 on Nov. 13 by Think Equity DivX technology will be licensed into Sony Playstation 3...with potential financial implications for second-half '08...Trading at 23 times '08 earnings per share [with] 33% projected growth, and versus peers (30 to 33 times), shares are still undervalued, in our view. Reiterating our positive view on DivX shares and 22 price target, based on about 29 times our '08 non-GAAP EPS of 76 cents, which we now believe has potential upside.

Hill International - HINT-NNM Buy - Price 11.20 on Nov. 13 by Morgan Joseph Hill reported 3Q07 results (September) that beat our projections on a combination of better-than-anticipated net revenue growth and margins in Project Management segment. Reported EPS were 13 cents versus our and Street's 11 cents, and 12 cents last year. Net revenues increased 51.2% to $51.5 million, versus our $48.8 million. (This engineering/construction firm's...project-management group provides services including troubled-project turnaround...and advice...on claims and disputes that arise in any phase of a construction project.) Our 12 target is based on 20 times our 2008 EPS estimate [60 cents]...Risks to target include... change in government appropriations; acquisition integration risk; and litigation risk [with outside contractors].

Linn Energy - LINE-NNM Market Perform - Price 25.44 on Nov. 13 by Raymond James Linn posted 3Q07 operating earnings per diluted unit of 9 cents, versus our 20-cent estimate and consensus 32 cents. Contributing to downside: higher-than-expected operating costs and higher [depreciation, depletion and amortization] expense. The reported net loss of 94 cents per unit included an unrealized hedging loss and a loss on sale of assets. Production of 10.5 Bcfe [billion cubic feet of natural-gas equivalent] was significantly above our forecast, and was up 69% sequentially and 330% year/year, primarily driven by acquisitions.

Stryker - SYK-NYSE Outperform - Price 70.05 on Nov. 13 by Bear Stearns Growth drivers in orthopedics (demographics and new technology) remain largely favorable...SYK has perhaps the best-balanced portfolio in the orthopedic space, with 40% of revenue from large joints; 20%, spine/trauma; and 40%, surgical products...Its $2 billion cash position keeps growing as it seeks acquisitions and new markets. We [see] earnings growth continuing at 20% clip through decade's end. Our year-end '08 target is 84, the current 24 times '07 price/earnings ratio applied to our '09E EPS of $3.48.

Wal-Mart Stores - WMT-NYSE Hold - Price 43.32 on Nov. 13 by Rochdale Research WMT reported Q3 EPS that beat consensus expectations...We view [Tuesday's] strength in retail and consumer discretionary as a relief rally, rather than a reversal of downtrend. Fundamentally, WMT generated meaningful productivity improvements in a low-comp quarter. It reported EPS of 69 cents...versus consensus 67 cents. Upside came from 8 basis points of gross-margin expansion, and 8 basis points of [sales, general and administrative] leverage...Management boosted Q4 EPS guidance to [up to] $1-$1.04, in line with consensus, $1.02. Despite better-than-expected results... we're currently unwilling to bet against strong headwinds: higher energy, declining housing, a weak dollar and stock market. Target: 46.