Buy - Price 9.90 on July 29 by Maxim Group AUTH reported a better-than-expected 2Q. Revenues were $18.4 million and pro forma earnings were 4 cents, versus our estimates of $17.4 million and 2 cents, respectively. Gross margins of 48.3%...met our expectations, down from last [quarter's] 49.5%. The sequential decline is attributed to the ramping of its new PC sensors....We believe AuthenTec is well-positioned to benefit as a leading player in the growing fingerprint-biometric market. Our '08 estimates are: revenues, $77.2 million; pro forma earnings, 19 cents. Target: 16. Market cap: $267 million.

Buy - Price 44.15 on July 29 by Longbow Research Ecolab provides cleaning and sanitation services in hospitality, health-care and industrial markets. With predictable and steady earnings growth, and a relative a lack of sensitivity to economic cyclicality, ECL justifiably enjoys multiples in excess of industry peers....With concerns surrounding the Henkel divestiture (29.4%) overblown and a continuation of solid growth in ECL's key end markets, we reiterate Buy and 56 target. Market cap: $210 million.

Hold - Price 7.56 on July 29 by Morgan Joseph MSO 2Q08 results beat expectations. Revenue and [earnings before interest, taxes, depreciation and amortization] were $77.1 million and $5.3 million, versus our $73.5 million and $4.5 million estimates, respectively. Our estimates do not include any impact from the Emeril [cooking-related business acquisition] deal...MSO maintained annual revenue and Ebitda guidance, but lowered operating income guidance to the range of $8.5 million to $13.5 million, from $9.5 million to 14.5 million. While we believe MSO's broad-based platform and new partnership deals position it well for long-term growth, we're cautious of the current operating environment. Market cap: $222 million.

Buy - Price 22.94 on July 29 by FTN Midwest Securities MXGL [with offices in Bermuda, Ireland and the U.S.] announced it is purchasing Imagine Group for £11 million cash and assumption of £90 million debt [1 pound equals about $2]. Imagine manages three Lloyd's syndicates which focus on non-U.S. risks....In 2007, IGL reported earned premiums of £61 million and produced £12 million of underwriting income....MXGL is acquiring £200 million of cash and invested assets, which we estimate could produce about £8 million in investment income a year, in addition to underwriting income of £8 million estimated for 2009. We guesstimate that, given an expected 15% [return on equity], EPS could be boosted by 5 to 10 cents in 2009 from this new venture. We affirm our prior 36 target. Market cap: $1.3 billion.

Buy - Price 62.53 on July 29 by Zacks Research Raised from Sell. Peabody reported Q208 earnings from continuing operations of 89 cents a share, well above consensus 54 cents, on higher-than-expected per ton prices, particularly from its Australian operations. Favorable supply and demand fundamentals coupled with Peabody's exposure to seaborne markets should give the company margins and earnings growth above its peers....We're raising our '08 and '09 estimates from $2.67 to $3.15 a share, and from $4.60 to $6.13 per share, respectively; 6-month target: 104. Market cap: $18 billion.

Outperform - Price 44 on July 29 by Barrington Research Regal [a maker of motion-control components] is operating under difficult macro conditions, but is offsetting most pressures via acquisitions and increased international operations, especially in Asia. And the U.S. housing correction...is likely to be bottoming later this year. At the minimum, Regal's comparisons will be getting easier. We believe the stock is much too cheap (9.4 times 2009 estimates), even after a modest estimate reduction to...adjust for slower international growth. We believe the current price reflects most if not all...[negative] conditions. Target: 57. Market cap: $1.8 billion.

Buy - Price $1.95 on July 9 by Pacific Growth Equities XOMA's pipeline includes both proprietary products and collaborative programs at various stages of preclinical and clinical development primarily directed toward treating cancer and immune disorders. We predict breakeven and full-year profitability in 2011, with about $142 million in revenues. Longer-term, we also believe XOMA 052 [a potent monoclonal antibody targeting Interleukin-1 beta in patients with Type-2 diabetes] has blockbuster potential...Near-term catalysts include initiation of multiple Phase II trials. Market cap: $274 million.