Hold -- Price 18.84 on July 7 by Jesup & Lamont Alaska Airlines reported that June traffic fell by 2.6%, on 4.1% less capacity -- so that load factor rose by 1.2 points to 80.7% from 79.5%. Load factor was better than the flat-to-down by 1% we were forecasting. [Affiliated] Horizon Air reported that June traffic fell by 9.2% on a capacity decline of 10.8%, so that load factor rose by 1.4 points to 79.4% from 78% last year. We are estimating that pricing as measured in yield declined by 10%, the low end of the range for airlines, as Alaska Air is mostly a domestic airline, although we believe [it] was substantially hurt in May because of its exposure to Mexican routes. To counter the decline in bookings in Mexico, Alaska Airlines moved a significant amount of capacity to Hawaii, where we believe the company also had relatively low yields, as it was introducing new service. We are estimating [second-quarter earnings per share] of 36 cents, versus a profit of $1.74 last year, and below the consensus estimate of 46 cents ... . We're maintaining our Hold rating on ALK common, as we believe the stock is somewhat fairly valued, selling at more than 13 times estimated 2009 EPS of $1.34. Our 2QE-EPS of 36 cents is below the consensus, which has been declining during the quarter. Market cap: $683 million.

Buy -- Price 3.90 on July 7 by MKM Partners We're raising our 12-month price target to 5, from 4, on ARTG [which develops and markets e-commerce software products], to reflect three factors: (1) the company's improving risk profile, (2) its consistent, solid fundamentals, and (3) a moderately improving economic outlook and accompanying rise in [e-commerce] group valuations. Our new target is based on...an enterprise-value/free-cash-flow multiple of 16 times. The stock currently trades at an EV/FCF multiple of just 11 times our 2010 free-cash-flow projection. ARTG is scheduled to report its 2Q09 results on July 30. We are expecting product-license bookings of $16.9 million, which is at the high end of management's guidance. Based on the company's strong pipeline, industry-wide deal activity, feedback from implementation partners and individual deal information, we are anticipating solid bookings. How much of the product-license bookings translate into revenue in the quarter is less certain ... . The key number in the quarterly results, however, will be the product-license bookings. Market cap: $495 million.

Buy -- Price 9.27 on July 6 by B. Riley CATY [has recently been] trading at 16.3 times trailing EPS, and 65% of tangible book value. The [share] price is now 22.8% below our target of 12, based on an 80% TBV multiple applied to the projected $14.71 TBV at June 30, 2010. Similar-sized regional peers are trading at a median TBV multiple of 88.8%. Cathay has had some significant asset-quality deterioration in the past few quarters, and we expect this trend to continue in 2Q09. We are expecting NPLs [nonperforming loans] to continue to climb, but we believe that the severity of losses on the CRE [commercial real-estate loans that are] likely to represent the bulk of future NPLs will be smaller than what the company has experienced in recent quarters, and that the extensive reserve built in recent quarters will provide some cushion to any earnings impact. We expect net charge-offs of roughly $32 million in 2Q09 and a provision of around $43 million ... . We are projecting 2009 and 2010 EPS of 23 cents and 70 cents, versus our prior estimates of 25 cents and 68 cents. We recognize that investor concerns about CATY's concentration in CRE loans (roughly 68% of loans are in CRE or construction) continues to weigh heavily on the stock ... . [The] same concerns also affect many of CATY's regional peers. Yet we believe that Cathay's solid reserve coverage and its strong capital ratios (tangible-common-equity ratio of 6.39%) will ... allow Cathay to perform better than many of its peers ... . We believe that the discounted valuation accorded to Cathay, despite its strong reserve and capital ratios, is unwarranted. With...the stock trading well below [our targets], we're raising our rating to Buy from Neutral. Market cap: $459 million.

Buy -- Price 24.01 on July 6 by Wunderlich Securities A recent meeting with HCC senior management affirmed that new Chief Executive Officer John Molbeck ... has made a smooth transition [he is also president] to the lead role. [The previous CEO retired from the post, but will remain on the board.] We expect HCC will maintain underwriting integrity, and a superior balance sheet ... . HCC should remain active in the acquisition market [and] should take advantage of the underwriters that need a capital solution [amid] few alternatives. In 2008, HCC made five small acquisitions for a total of $72.6 million. During 1Q09, HCC acquired a surety contractor. We anticipate acquisitions of strategic managing general agents will be part of the strategy ... . We believe HCC represents one of the best values in the insurance market. In our opinion, the current valuation of 8.7 times 2009 estimated EPS of $2.75 and 0.9 times forecast "09 book value of $23.27 does not reflect HCC's double-digit [return on equity] and competitive advantages. Market cap: $2.7 billion.

Buy -- Price 40.15 on July 7 by Jefferies & Co. We're raising our target to 48, which is 30 to 35 times our "10 [pro forma] EPS estimate of $1.47, roughly in-line with HMSY's historical two-year price/earnings average multiple. Considering current economic conditions, we remain upbeat on the potential for upward earnings revisions. HMS aids government health-care programs in their efforts to increase revenue and reduce operating and administrative costs. HMs' cost-containment and payment-accuracy services are offered through its two wholly owned subsidiaries, Health Management Systems and Reimbursement Services Group. HMS provides cost-recovery services to government payers; its customers include Medicaid programs, Medicaid managed-care plans, child-support agencies, state prescription-drug plans ... [etc.] RSG provides Medicare-reimbursement services to public and private hospitals ... . A new, competitively won Mississippi contract (about $1 million to $2 million fully ramped-up) validates [the] favorable business environment for HMSY. Momentum appears to be continuing [for] 2009. Market cap: $1 billion.

Market Perform -- Price 16.80 on July 6 by Barrington Research H&R Block recently reported the financial results of its fiscal fourth quarter and fiscal year (ended April 30), which were mixed. Management provided its fiscal 2010 guidance, expecting earnings from continuing operations to be in the range of $1.60 to $1.80 a share, in line with consensus estimate of $1.66. Fourth-quarter total revenues from continuing operations decreased 2.9% to $2.467 billion, from $2.541 billion last year, below our $2.654 billion estimate/First Call consensus $2.529 billion. During 4Q, HRB repurchased 5.6 million shares at an aggregate price of $98.7 million, or an average price of $17.53 per share, under a previously announced Board of Directors' authorization to purchase up to $2 billion of the company's common stock -- leaving approximately $1.9 billion [worth] of share-repurchase authorization remaining through June 2012. Market cap: $5.6 billion.

Buy -- Price 16.75 on July 7 by Collins Stewart Following eas[ing] of component-supply constraints and the start of back-to-school build, notebook ODM [original-design-manufacturer] shipments recovered over the last few weeks. Intel should have been a key beneficiary, and we expect revenues for the quarter to be up modestly, low-single-digits sequentially, and above official guidance of flat shipments. Margins could surprise on the upside from better fixed-cost absorption. Our 18 target reflects an 18 times normalized earnings power of a dollar. The multiple is at the midpoint of the historical valuation range of 15 times to 20 times. While Intel's business model and competitive position remain unchallenged, it is exposed to global economic headwinds, industry cyclicality, technology transitions and imbalances between supply and demand. All of these pose risks to our price target. Market cap: $93.5 billion.

Strong Buy -- Price 57.03 on July 7 by Standard & Poor's Equity Research Raising rating to Strong Buy from Buy. We think the shares have become more compelling after an 8% decline so far in 2009, and [after an] underperformance since the market bottom in early March, versus shares of select, lower-quality restaurant stocks, which, in some cases, have risen sharply in a bid for risk. On a more favorable commodity-price outlook, strength in emerging markets, and better [foreign-exchange] comparisons later in 2009, we raise our EPS estimate for 2009 by 5 cents, to $3.85, and 2010E by 20 cents, to $4.10. Based on a revised [discounted-cash-flow] model and forward P/E ratio of 17 times, we raise our target price by $4 to 70. Market cap: $63.4 billion.