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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, November 06, 2006

Market Wrap (Nov. 6, 2006)

DJIA 12,105.55; Up 119.51 (1.00%)
NASDAQ 2,365.95; Up 35.16 (1.51%)
S&P500 1,379.78; Up 15.48 (1.13%)
10YR-Bond 4.709%
NYSE Volume 2,440,260,000
NASD Volume 1,863,729,000

Today was an interesting pre-election rally day. Now the markets are looking more like a split Congress rather than the risk of a Democratic lead in both the House and the Senate, so gridlock would rule. This was also a the epitome of MERGER MONDAy.

We saw Adolor (ADLR) lost 44% down to $7.69 on over 25 million shares after the FDA gave it an Approvable letter for its bowel-dosorder drug, but this would create longer delays.

Cisco (CSCO) rose 3.8% to $24.68 2-days ahead of its results.

OSI Partners (OSI), the parent of Outback Steakhouse, rose 22.5% to $39.75 after a management and private equity buyout group submitted a $40 offer that the board approved. (TRFC) rose 20% to $7.40 after NAVTEQ (NVT) acquired the company.

Four Seasons (FS) rose 29% to $82.50 after Prince Al-Waleed Bin Talaal and a Bill Gates team offered to acquire the company for $82.00 cash per share.

Kos Pharmaceuticals (KOSP) rose a sharp 54% to $77.06 after Abbott Labs made a $78 cash offer to acquire the company for its HDL/LDL cholesterol and lipid treatments.

XM Satellite Radio (XMSR) rose a sharp 15% to $13.17 after it posted narrower losses on higher revenues than expected, despite the fact that it lowered subscriber targets.

SIRIUS Satellite Radio (SIRI) rose 6.9% to $4.02 in conjunction with XMSR beating expectations.

PNM Resources (PNM) rose another 1.25% to $29.29 the trading day after Bill Gates' Cascade formed an electricity and trading venture with it.

Swift Transport (SWFT) rose 24% after its former CEO, and current board member and largest holder, offered $29.00 cash to acquire the trucking company.

Berkshire Hathaway (BRK/A) rose 2.1% to $107,200.00 after the Warren Buffett-led diverse operating conglomerate posted net EPS at $1,797 due to low losses low charges on its insurance.

PortalPlayer (PLAY) fell 0.05% to $13.35 after NVIDIA (NVDA) made an at-the-money buyout offer of $13.50; NVDA rose about 3% to

Moscow Cablecom (MOCC) rose 8.4% to $10.83 after it received an unsolicited $10.80 bid from Renova for the rest of the company it doesn't own.

Per-Se Tech (PSTI) rose 12.7% to $27.55 after McKesson announced it would acquire the company.

Jon C. Ogg
November 6, 2006

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