A Cool Card Trick: Barrons notes that data processor Ceridian is a classic activist play. Pershing Capital, run by Bill Ackman, thinks that Ceridian should spin off its fast growing credit card processor from its slower moving human resource divisions. "If Comdata were split off, it might receive more focused attention from management and greater visibility on Wall Street. Although it accounts for just 30% of sales, it's probably worth about as much as the rest of Ceridian, or up to $16 a share, says JPMorgan analyst Tien-tsin Huang. He arrives at that figure by applying industry price-earnings ratios and other valuation metrics to Ceridian's business. The Bottom Line While the stock has run up some 20% since William Ackman started buying, more gains lie ahead. If Ceridian is split up, investors could reap another 20% -- or far more. The value to shareholders could rise quickly from that combined $32 a share. For one thing, an acquirer like American Express (AXP) or MasterCard (MA) might snap up Comdata at a premium. And Ackman probably would push for operational improvements at the main, human-resources unit; it now generates 9% margins to ADP's 23%. One way or another, then, shareholders could see at least another 20% gain -- and possibly much more."

Atheros is up 50% in the last six months due to 64% of growth in sales of chips for WiFi networking. Barrons notes the growth might not be over yet: "But the Wi-Fi market isn't done evolving, apparently. [CEO] Barratt said that 23% of his December quarter WiFi revenues were from the latest 802.11n generation of the technology, compared to just 12% of sales in September."

Speaking of Dividends: Burger King just paid out its first dividend and has also been reducing debt because of its strong cash flows: "Commenting on the dividend, Chief Executive John W. Chidsey said: "We believe in the company's long-term growth potential and financial strength. This event sends a very strong message. We are clearly on track." As previously announced, Burger King also retired an additional $25 million in debt Tuesday. Using cash generated from operations, the company has retired $125 million in borrowings during the first seven months of its fiscal 2007 year, which ends June 30. As a result, says chief financial officer Ben K. Wells, Burger King is "now focused on evaluating other initiatives that will contribute to shareholder value, such as strategic investments, increasing cash dividends and share repurchases.""

Speaking of Dividend: The company is boosting its dividend for the sixth year in a row after record fourth quarter profits: " Dividends have been paid without interruption since 1910. The company credited the payout hike to its strong 2006 performance and future growth prospects."

Ericsson's Undue Pounding: The company fell 6% last Friday when they lowered their earnings targets for 2007 but Barrons thinks this is an overreaction. "Slippage in profit margins is easily attributed to an expansion of services activities that promise more durable, if less lucrative, sales growth. Costs associated with rolling out networks at Ericsson's pace inevitably weighs on profitability in the short term. Even so, Ericsson's margins remain far above peers'."

Rolling out the Green Carpet: The company has been hurt by the downturn in housing but Barrons thinks there's now upside: "Trading at a relatively modest 14 times estimated earnings for this year, the stock could top 100 within a year, bulls figure. There's growing evidence that housing has troughed, and oil prices have pulled back sharply in recent months. As optimism spreads, consumers and companies may soon feel ready to replace their ratty rugs." Later on in the article: ""Management has been around a very long time, and is very shareholder-oriented," says Sabrina Carollo, analyst at Ariel Capital Management, which owns the stock. [mohchrt] Conceivably, the company could be a candidate for a leveraged buyout. It has ample cash flow -- some $800 million in 2005 -- and moderate long-term debt of $2.1 billion. But even without a deal, investors have reason to be optimistic. Keith Hughes, an analyst at Atlanta-based SunTrust Robinson Humphrey Capital Markets, figures that share purchases are likely in 2007. He's looking for earnings this year of $7.25 a share, up from an estimated $6.27 in 2006; he sees a "worst case" of $6. Assuming the price-earnings multiple returns to 15 times -- about where it was in 2005 -- even the worst-case earnings would leave the stock at $90 a share."

Barrons notes that Wall Street is probably ignoring the fast growth of the bank's Global Transactions business: "The German bank's (DB) Global Transactions business, which offers cash management for corporations, securities services, trade finance and more, is in the third year of a robust recovery, boasting a 66% return on equity at the end of 2006. That's the highest among all the bank's business units." The revenues for this unit are more predictable as opposed to the prop trading unit or the investment banking business.