Zeev's Turnips Patch-No Politics (ZEEV)

[Bearmove]

PRE-MARKET DIRECTION

Stocks are seen opening slightly higher amid falling oil prices and mergers & acquisitions activity. Crude prices continue to ease, slipping below $54 per barrel and relieving investors of some inflation jitters. M&A activity is being led by reports Time Warner (TWX) and Comcast (CMCSA)have reached a tentative agreement to buy Adelphia Communications for nearly $18 billion. Cablevision Systems (CVC) also had expressed interest in acquiring Adelphia. Paxson Communications (PAX) jumps on new takeover talk. Reports say Hollywood talent agency The Firm is in talks to buy PAX. Earlier this week, tv celebrity Byron Allen said his company was "aggressively pursuing" PAX. Shopko (SKO) shares jump on news it will be bought by Goldner Hawn for $24 per share. The deal is seen closing in Q2.

In other corporate news, Emulex (ELX) gets upgraded to buy at AG Edwards with a $25 per share price target after the company said late Thursday Q3 results were ahead of expectations. Ipix (IPIX) jumps after it launches its new day/night camera at a conference late Thursday. Eyet Pharmaceuticals (EYET) is higher after news late Thursday its co-founder is stepping down from the company's Board of Directors. Telewest (TLWT) edges up on an upgrade to buy at Jefferies & Co. Array BioPharma (ARRY) says it has expanded a collaboration agreement with Genentech (DNA) to develop small molecule drugs against an additional protein target in oncology. Imax (IMAX) jumps on a deal for theaters in China. Dominion Homes (DHOM) said late Thursday it will post a Q1 profit. Millennium (MLNM) edges higher after it says it will release positive Velcade study results. EasyLink Services (EASY) jumps on news late Thursday it has reached a settlement with the SEC.

On the downside, Yellow Roadway (YELL) falls in tandem with USF (USFC) after USF warned late Thursday of a Q1 earnings shortfall. Cardima (CRDM) holds losses made late Thursdsay when it said its auditors question the company's viability. Silicon Graphics (SGI) warned late Thursday it would post a Q3 loss as revenues drop. WebMethods (WEBM) says it expects Q4 results to be at the low end of its previously stated forecast range. Electroglas (EGLS) tumbles on lowered Q1 revenue guidance. Pfizer (PFE) is still suffering from Thursday's drop on having to pull its Bextra drug from markets after the FDA advised it. Blue Coat Systems (BCSI) holds losses made late Thursday when it said the SEC opened an investigation into the company. Ariba (ARBA) drops after warning late Thursday it would miss Q2 revenue estimates. Party City (PCTY) says Q3 sales fell from a year ago and withdraws its Q4 guidance. Borland Software (BORL) holds losses made late Thursday when it warned Q1 revenues would fall short of expectations and it would report a loss for the quarter. Magma Design Automation (LAVA) cut its Q1 and 2006 estimates late Thursday. BioSource (BIOI) dips after the company said late Thursday it's top shareholder rejected BioRad's (BIO) unsolicited bid. AmerisourceBergen (ABC) eases on a subpoena from the New York Attorney General.

No major economic reports are due today. As a result, investors will continue to look to company news for direction. However, trading is likely to slow this afternoon with no major earnings reports slated for release before the weekend.

PRE-MARKET SECTOR WATCH

(-,+) Large cap tech stocks: mixed

(-,+) Chip stocks: mixed

(-,+) Small cap stocks: mixed

(+) Software stocks: flat to up


(-,+) Drug stocks: mixed

(-,+) Internet stocks: mixed

PRE-MARKET UPSIDE MOVERS
(+) TWX and CMCSA each edge up. They have reportedly reached a tentative agreement to buy Adelphia Communications for nearly $18 billion. CVC also had expressed interest in acquiring Adelphia. CVC shares are also up.

(+)PAX jumps on new takeover talk. Reports say Hollywood talent agency The Firm is in talks to buy PAX. Earlier this week, tv celebrity Byron Allen said his company was "aggressively pursuing" PAX.

(+)SKO shares jump to a new 52-week high on news it will be bought by Goldner Hawn for $24 per share. The deal is seen closing in Q2.

(+) ELX gets upgraded to buy at AG Edwards with a $25 per share price target after the company said late Thursday Q3 results were ahead of expectations.

(+)IPIX jumps after it launches its new day/night camera at a conference late Thursday.

(+)EYET is higher after news late Thursday its co-founder is stepping down from the company's Board of Directors.

(+)TLWT edges up on an upgrade to buy at Jefferies & Co.

(+) ARRY says it has expanded a collaboration agreement with DNA to develop small molecule drugs against an additional protein target in oncology. DNA is flat.

(+)IMAX jumps on a deal for theaters in China.

(+)DHOM said late Thursday it will post a Q1 profit.

(+)MLNM edges higher after it says it will release positive Velcade study results.

(+)EASY jumps on news late Thursday it has reached a settlement with the SEC.

PRE-MARKET DOWNSIDE MOVERS

(-) YELL falls in tandem with USFC after USF warned late Thursday of a Q1 earnings shortfall.

(-)CRDM holds losses made late Thursdsay when it said its auditors question the company's viability. CRDM is at a new 52-week low.

(-)SGI warned late Thursday it would post a Q3 loss as revenues drop. Shares fall to a new 52-week low.

(-)WEBM says it expects Q4 results to be at the low end of its previously stated forecast range.

(-)EGLS tumbles on lowered Q1 revenue guidance.

(-)PFE is still suffering from Thursday's drop on having to pull its Bextra drug from markets after the FDA advised it.

(-)BCSI holds losses made late Thursday when it said the SEC opened an investigation into the company.

(-)ARBA drops to a new 52-week low after warning late Thursday it would miss Q2 revenue estimates.

(-)PCTY says Q3 sales fell from a year ago and withdraws its Q4 guidance.

(-)BORL holds losses made late Thursday when it warned Q1 revenues would fall short of expectations and it would report a loss for the quarter. Shares hit a new 52-week low.

(-)LAVA cut its Q1 and 2006 estimates late Thursday. Shares hit a new 52-week low.

(-)BIOI dips after shareholders said late Thursday it rejected BIO's unsolicited bid. BIO is flat.

(-)ABC eases on a subpoena from the New York Attorney General.

AFTER HOURS LOOK AHEAD

No major economic reports are due today. As a result, investors will continue to look to company news for direction. However, trading is likely to slow this afternoon with no major earnings reports slated for release before the weekend.

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