Restructuring, too, are Brooks Automation (BRKS)the semiconductor-factory supplier, and Spherion (SFN) a white-collar staffing company that's digesting several acquisitions.

David Nierenberg's D3 Family Funds want Brooks Automation to "commit to an immediate and continuing substantial share-repurchase program." Nierenberg maintains that the company can generate sufficient cash over the next three or four years both to fund aggressive buybacks and roughly double its revenues through internal growth and acquisitions. Nierenberg also contends that Brooks has the financial strength to attain these objectives without borrowing money. The D3 Family Funds currently hold 6,346,806 shares (9.98% of the total outstanding).

Brooks' long-term growth drivers, solid balance sheet ($3.75 net cash per share), $200 million buyback and raised price target create a nice set-up. And the fact that shares are currently trading at historically low levels at 1 times book and two prominent investors making a bullish bet add to the case

Brooks Automation (BRKS) was upgraded to Outperform, Bear Stearns said. Valuation call, as there is 39% upside potential to the company's $17 price target. Current cycle poses a headwind, but strong secular growth potential remains.

6/05/07 $17.92

Downgraded by Bear Stearns from Outperform to Peer Perform

Upgraded by Stanford Research from Hold to Buy

Upgraded by Matrix Research from Hold to Buy