Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Archer Daniels Midland Co. (NYSE: ADM) said Q4 profit plunged, missing analysts' expectations.
• Berkshire Hathaway Inc. (NYSE: BRK.A) posted yet another solid quarter and topped analysts' expectations.
• Cisco Systems Inc. (NASDAQ: CSCO) reported solid results and reaffirmed its revenue guidance.
• General Mills Inc. (NYSE: GIS) performance despite rising commodities costs impressed Jim Cramer.
• Hansen Natural Corp. (NASDAQ: HANS) Q2 earnings surged on popularity of Monster energy drink.
• Humana Inc. (NYSE: HUM) beat Q2 expectations, sending shares of health insurers higher.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its Q2 loss, sending shares up near its 52-week high.
• MGM Mirage (NYSE: MGM) Q2 profit tumbled but revenues topped analysts' expectations.
• NetSuite Inc. (NYSE: N) cut its Q2 loss and revenues surged on 400 new customers.
• Orbitz Worldwide Inc. (NYSE: OWW) narrowed its net loss while revenues inched upward.
• Polo Ralph Lauren Corp. (NYSE: RL) easily topped Q1 expectations and raised its full-year guidance.
• Pzena Investment Management Inc's (NYSE: PZN) CEO admits that its Q2 was "awful, just terrible."
• 3Com Corp. (NASDAQ: COMS) raised its Q1 profit and sales forecasts due to gains in China.
• Toyota Motor Corp. (NYSE: TM) net income fell due to the strong yen and rising materials costs.
• Warner Music Group Corp. (NYSE: WMG) reported a smaller-than-expected Q3 net loss.
• World Wrestling Entertainment Inc. (NYSE: WWE) flat year-over-year earnings fell short of estimtates.

Also, Jonathan Berr wonders whether Exxon Mobil Corp. (NYSE: XOM) actually has a windfall profit. And Peter Cohan suggests that the slowing economy in China could put pressure on earnings in the U.S.

For more highlights from this week, see: Fannie Mae, Time Warner, P&G, Playboy, News Corp. and others

Upcoming quarterly reports include Napster (NASDAQ: NAPS), Applied Materials (NASDAQ: AMAT), TJX Cos. (NYSE: TJX), NVIDIA (NASDAQ: NVDA), Macy's (NYSE: M), Liz Claiborne (NYSE: LIZ), Deere & Co. (NYSE: DE), Dr. Pepper Snapple (NYSE: DPS), Agilent (NYSE: A), JCPenney (NYSE: JCP), Kohl's (NYSE: KSS), Nordstrom (NYSE: JWN), Estee Lauder (NYSE: EL), Wal-Mart (NYSE: WMT), and Abercrombie (NYSE: ANF).

Visit AOL Money & Finance for more earnings coverage.

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AIG (NYSE:AIG) Cut to Market Perform at FBR, according to 24/7 Wall St. The financial website also reported VMware (NYSE:VMW) Started as Underperform at Bernstein and Polo Ralph Lauren (NYSE:RL) Raised to Outperform at Morgan Keegan.

Credit Suisse downgraded Avon (NYSE:AVP) to Neutral from Outperform, according to Brieifing.com. The news service also reports that Jefferies downgrade UTStarcom (NASDAQ:UTSI) to Underperform from Hold.

Douglas A. McIntyre

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For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $55 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in just seven weeks months as long as RL is above $55 at September expiration. Ralph Lauren would have to fall by more than 16% before we would start to lose money. Learn more about this type of trade here.

GIS hasn't been below $55 since January and has shown some solid support between $55 and $60 recently. This trade could be risky if the high end retail ends up slowing as well, but even if that happens, this position could be protected by the support the stock might find around $56 where it has bottomed out a few times over the past six months.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in RL.

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Since January 2001, the dollar has lost much of its value. It's fallen 71% in value from the 92 cents to the Euro at which it traded back then. This is great news for Europeans who have a chance to come to the U.S.

I am teaching a group of students from Italy this month. Their friends advised them to come to the U.S. with empty suitcases so they could fill them up with clothing and other retail goods. That's because when they come here, the clothing that they buy in Europe looks to be on a 50% off sale. This leads to what may be an investment opportunity for Americans -- Polo Ralph Lauren (NYSE: RL). (Its stock is not overpriced; it's lost 39% of its value in the last year and it trades at a price earnings-to-growth (PEG) ratio of 1.2 -- a P/E of 15.7 and earnings forecast to grow 12.8% to $4.51 in 2009.)

How so? The Italian students are eager to gobble up as much of its merchandise as they can. If these students are a microcosm of Europeans, we can expect them to flock to the East Coast of the U.S. during their summer break to boost their wardrobes. They also like Lacoste and Gucci as well -- both of whose products are selling at screaming discounts here for those who get paid in Euros.

Unfortunately, what's good for European tourists is bad for U.S. ones traveling in Europe. I was there last month and found that prices were about 60% higher there than here. Our leaders might have gotten confused about which country they're supposed to be running.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Polo Ralph Lauren Corporation (NYSE: RL) is engaged in the design, marketing, and distribution of apparel, accessories, home furnishings and fragrances. These are offered under such brand names as Polo Ralph Lauren, Safari, Black Label, Club Monaco and Rugby. The company operates over 300 Ralph Lauren, Club Monaco, and Rugby retail stores, as well as a pair of e-commerce sites. Its products are also carried by upscale and mid-tier department stores. Macy's (NYSE: M) and Dillard's (NYSE: DDS) account for more than a third of all wholesale revenue. Jones Apparel Group (NYSE: JNY) and Liz Claiborne (NYSE: LIZ) are competitors.

The company pleased investors late last month, when it reported fiscal Q4 EPS of $1.00 and revenues of $1.24 billion. Analysts had been looking for 65 cents and $1.15 billion. Management also guided FY09 EPS to $3.95-$4.05 ($3.97 consensus). Needham subsequently reiterated its "buy" rating on the shares and boosted its price target to $79.

The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the issue with four "buys", eight "holds" and one "sell". Analysts see a 15% growth rate, through the next year. The RL P/E ratio (16.26), PEG ratio (1.03), Price to Sales ratio (1.32), Price to Book ratio (2.70), Price to Cash Flow ratio (10.36), Price to Free Cash Flow ratio (14.06), Sales Growth rate (20.32%), EPS Growth rate (47.06%), Return on Assets (10.34%) and Return on Investment (12.77%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $50.51 and $102.58. A stop-loss of $57.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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• DJIA 12,594.84 (+46.49)
• S&P500 1391.01 (+5.66)
• NASDAQ 2486.70 (+5.46)
• 52-WEEK LOWS
• TOP 10 ANALYST CALLS

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Father's Day is around the corner. Why not spend some time looking at the coming earnings and how Dad's Day may have an impact. It is funny to see how many of the companies reporting earnings this week actually have links to Father's Day.

While this column has been obviously bearish of late, there are a few potential winners that may appear, just in time for the big day. Time to stock up on gifts for dear-ole-dad, or get farther away from stocks? You tell me... (by the way, comments and ideas are always appreciated)

Monday, May 26

Markets will be flat. I am certain that stocks on the U.S. Market will close at the exact price they closed last Friday. But what do I know!

Tuesday, May 27

Gander Mountain Company (NASDAQ: GMTN) shares have been bouncing all over the place and have formed an interesting chart pattern of two peaks and a crater in March. Now shares are continuing a downward slope and look to be ready to fall off a cliff. This sporting retailer has recent sales approaching $1 billion yet somehow managed to lose $31 million during the last 12 months. Blame it on the discretionary buying patterns of consumers? Sure... why not, it couldn't be management, could it? Whatever the reason, consumers are having enough of a hard time already, so the expected loss of 60 cents per share is no stretch. I hope they sell hard hats there for shareholders.... Watch out below!

If your dad is into gaming and he speaks Chinese, he more than likely enjoys role-playing games on the Shanda Interactive Entertainment (NASDAQ: SNDA) network. There is no denying the fact that China stocks have been on fire. Technically, shares of Shanda are displaying a bullish double bottom and are trending higher as it makes higher lows. Earnings have been very strong with this group as has been relative strength. If the stock can break through resistance of $38, it could show a significant upside with an earnings beat. Their fundamentals are strong so don't be surprised if investors bid up into the earnings release. Look for 51 cents per share on $106 million of revenue.

Wednesday, May 28

The Men's Warehouse, Inc. (NYSE: MW) is where an educated investor is their best short-seller. It's no surprise that this specialty retailer has seen a dramatic pullback during this recessionary environment. Since October 2007 the shares have lost 50% of their value and earnings are now expected to be 22 cents per share, or 1/3 of what they were just one year ago. If you have any reason to get back at your dad for not letting you borrow the car or embarrassing you as a kid, here's your chance by buying him 1,000 shares of Men's Warehouse before earnings. That should teach him.

What is the perfect gift for dad? A tie, cologne, or a gorgeous shirt? Either one will lead you to something from Polo Ralph Lauren Corporation (NYSE: RL). The name is synonymous with class and distinction, but it is not exempt from the powerful impact of an economic slowdown. This stock is riding its 50-day moving average. Watch the quarterly earnings, estimated to be 65 cents per share. If the stock breaks below its support of $57.50, as you may see another 10% drop to the next support level.

In all fairness, not all dads dress in the traditional suit and tie. That is good news for The Dress Barn, Inc. (NASDAQ: DBRN). Recently, shares skirted near disaster when they dipped under $10 in March. Earnings expectations have been falling for the coming year yet shares have been moving slowly higher on increasing volume. This specialty store that offers women's regular and plus sized apparel has seen its price ride its 200-day moving average as institutions have been increasing their holdings. What do the big boys know? This could be a signal to buy this beaten down stock. Revenue is estimated to be $350 million for the quarter and per share earning 26 cents.

Thursday, May 29

Real men don't eat quiche; but they do have loud cars! Well, not if Monro Muffler Brake, Inc. (NASDAQ: MNRO) has anything to do with it. First Call is expecting a much quieter quarter with earnings coming in at 14 cents per share as compared to 19 cents during the same period last year. Revenues are estimated to come in at $108.74 million for the period. Shares should continue to stall as the entire automotive sector is stuck in neutral, except for the fact that the chart is showing bullish pattern. Don't be surprised if this is a winner as expectations are low.

Timing is everything they say. Movado Group, Inc. (NYSE: MOV) will probably agree with that. Watch earnings as they are expected to tick lower by 50% as compared to last year. First Call is showing estimates at 4 cents per share on $97.30 million of revenue. Earnings growth is slowing and has been estimated to continue to be negative through 2010... not encouraging.

Dell Inc. (NASDAQ: DELL) has been up against hard times. In April the company announced a $1 billion share buyback plan. So, either management believes that it is the best use of their excess cash or they are doing everything possible to keep the share price up. Either way, this could be a short-term bullish sign. The problem is that they are just not sexy anymore. Even with the acquisition of AlienWare in 2006 and Michael Dell coming back to the helm as of January 2007, shares have been moving lower. The chart is showing a head-and-shoulders reversal pattern during 2008. Is Dell ready for a comeback? Just ask Dad what type of computer he wants this year for Father's Day. Want to bet it isn't a Dell? Look for earnings of 33 cents per share on $1.56 billion of revenue.

I know my dad loves Sears Holdings Corp (NASDAQ: SHLD) ...how about yours? Those tools and overalls, those washers and dryers...Oh, the riding mowers. I love that place! Yet it seems that the love affair with Sears waning. Last September, I wrote about the problems that Sears was about to endure. The idea had been that during the past several years, shares had been climbing because of the idea that the underlying real estate had unrealized value. That was the same reason that it was about to get clobbered. (see Sears in Focus) The stock has fallen from $125, at the time that analysis was written to about $85 today. The effect of falling land values combined with the problems of being a retailer in a slowing economy has been tough on Sears. Analysts are looking for .15 per share this quarter and it may be time to start nipping at this after earnings are released. If they make or exceed the number, shares should rebound to $100. If you want to play it conservatively, perhaps consider buying call options - just out of-the-money.

Friday, May 30

Sell in May and go to the movies. Grab some popcorn and tickets for you and Dad and head over to the next big movie from Lions Gate Entertainment Corp. (NYSE: LGF). Wait, and I mean wait. It seems that the next movie to be released by LGF is slated for September 2008. What happened to the summer? Earnings are expected to come in at 37 cents per share of the period, up from 23 cents for the same period last year. The good news is the fundamentals with this company as they have little, if no debt and plenty of cash. That could be a great benefit to LGF shareholders as other companies in the sector could have a hard time raising cash for productions.

Disclosure: Horowitz & Company clients do not hold positions in stocks mentioned as of the publish date.

Andrew Horowitz is a money manager and author of The Disciplined Investor: Essential Strategies for Success. Now available on Audiobook!

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While the earnings season is beginning to wind down for the current quarter, there are still plenty of results to come. Here's a peek at what analysts surveyed by Thomson Financial are expecting from companies scheduled to report results in the final week of May 2008.

These companies are expected to post earnings growth, compared to the same period in the previous year:

• Omnivison Technologies (NASDAQ: OVTI) up 81.3% to 32 cents per share, on $178.20 million in revenue
• Lions Gate Entertainment (NYSE: LGF) up 48.6% to 37 cents per share, on $410.93 million in revenue
• Big Lots Inc. (NYSE: BIG) up 27.7% to 36 cents per share, on $1.14 billion in revenue
• Costco Wholesale Corp. (NASDAQ: COST) up 13.8% to 65 cents per share, on $16.32 billion in revenue
• Tiffany & Co. (NYSE: TIF) up 10.0% to 40 cents per share, on $648.87 million in revenue
• HJ Heinz Co. (NYSE: HNZ) up 9.8% to 61 cents per share, on $2.67 billion in revenue
• Dollar Tree Inc. (NASDAQ: DLTR) up 9.5% to 42 cents per share, on $1.05 billion in revenue

These companies are expected to report earnings declines:

• Sears Holdings Corp. (NASDAQ: SHLD) down 86.4% to 15 cents per share, on $11.41 billion in revenue
• Men's Wearhouse Inc. (NYSE: MW) down 70.6% to 22 cents per share, on $476.98 million in revenue
• Polo Ralph Lauren Corp. (NYSE: RL) down 4.4% to 65 cents per share, on $1.15 billion in revenue
• Dell Inc. (NASDAQ: DELL) down 2.9% to 33 cents per share, on $15.66 billion in revenue

TiVo Inc. (NASDAQ: TIVO) is expected to swing to a loss of a penny per share, compared to a penny profit a year ago, and report $55.62 million in revenue. And analysts expect Borders Group Inc. (NYSE: BGP) to narrow its loss 7.8% to 47 cents per share, on $801.11 million in revenue.

Visit AOL Money & Finance for more earnings coverage.

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• Markets closed for Memorial Day holiday.

• Vodafone Group Plc (ADR) (NYSE: VOD) to report preliminary earnings results for the year ending 3/13/08, conference call at 5:00am.
• Modine Manufacturing Co. (NYSE: MOD) to report Q4 earnings; conference call at 11:00am.

• Polo Ralph Lauren Corporation (NYSE: RL) to report Q4 earnings; conference call at 9:00am.
• TiVo Inc. (NASDAQ: TIVO) to report Q1 earnings; conference call at 5:00pm.

• Marvell Technology Group Ltd. (NASDAQ: MRVL) to report Q1 earnings; conference call at 3:45pm.
• Novellus Systems, Inc. (NASDAQ: NVLS) to give Q2 mid-quarter update at 4:30pm.
• Force Protection, Inc. (NASDAQ: FRPT) to give business update at 4:30pm.
• Dell Inc. (NASDAQ: DELL) to report Q1 earnings; conference call at 5:00pm.

• FDA Oncologic Drugs Advisory Committee meeting at 8:00am on GlaxosmithKline Plc (ADR) (NYSE: GSK)'s NDA 022-291 proposed trade name Promacta for short-term treatment of previously-treated patients with Chronic Idiopathic Thrombocytopenic Purpura, to increase platelet counts and reduce/prevent bleeding.
  
• Science Board to the FDA meeting at 8:00am to discuss Subcommittee Review of National Center for Toxicological Research & Office of Regulatory Affairs; discuss keeping in step with technical and scientific evolutions in the fields of regulatory science.

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Determined to bring a more formal, stylish fashion to the U.S. Olympic team garb for the Beijing games later this year, the Olympic committee has dumped Roots Ltd. in favor of Polo Ralph Lauren Corp. (NYSE: RL). According to The Wall Street Journal [subscription], Tom Brokaw, former NBC news anchor, was asked by USOC COO Norman Bellingham to approach Ralph Lauren about the possible affiliation.

The deal, which also includes the Paralympics, builds on the company's growing affiliation with sports events, including the U.S. Open and Winbledon, and should result in a terrific boost to sales at both its own boutiques and other retailers with whom it is negotiating distribution.

The designs will supposedly evoke the styles of the film Chariots of Fire. The duds will be kept under wraps until the opening ceremonies in August, although the many Chinese who will probably sew the garments will have a good idea of what to expect. I'll be interested to see if the Chinese government's clampdown on counterfeit goods successfully keeps fake U.S. uniforms off of the streets of Beijing before the games even began.

The line of consumer clothing to be spun off the Olympic garb should dovetail nicely into Lauren's line and burnish its image, although it will be interesting to see at what price point this line will fall. The equalitarian nature of the Olympic sport may not be reflected in the cost of dressing like our champions.

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This post is one of several on business heirs apparent. Let us know in the comments whether you think David Lauren should take up the reigns of Polo Ralph Lauren, and be sure to check out the other heir apparent posts.

David Lauren is unusual among his two siblings and father, Ralph: he is not an entrepreneur. Ralph Lauren is, after all, the very definition of a self-made man, having brought himself up from his humble beginnings as Ralph Lipshitz (it was his brother who suggested the name change) and forged a company worth several billion dollars today. But as the only Lauren sibling to work for Polo Ralph Lauren (NYSE: RL) -- as the SVP of Advertising, Marketing, and Corporate Communications -- he has been called the "heir apparent" to his father by more than one fashionable pundit.

As a junior investment banker, I analyzed Ralph Lauren's balance sheet more than once, seeking to show how well it might fit with another fashion house. The numbers were convincing, and it's probable that many a quiet chat was held between high-powered apparel executives based on these balance sheet combinations. The fact that nothing has ever materialized from this Wall Street cajolery is testament to the thing we all talked about but never appeared on our PowerPoint pitch slides: Ralph Lauren likes control. (I remember a story about a major photo shoot held up for hours because Ralph didn't approve of the shade of beige used in some thread, or something similarly outrageous.)

Many a sensible succession has been held up because the aging founder was unwilling to give up the corner office, in corporations and in kingdoms alike. For all his patrician good looks and endless charms, Ralph is rather unyielding in his patriarchy and certainly has not made David's path to the CEO spot a hop, skip and a jump.

Of course, this company is a public one, with shareholders and a board, so at some point the issue may be forced. It likely won't be in the next year or two, as at 68 Ralph is past the age of legal retirement, but not yet truly ancient (a moniker better given to the likes of CEOs such as Sumner Redstone, 84, or the revered Warren Buffett, 77). At 36, David is young to be an SVP, let alone a chief of something.

And, it seems, far too busy to give up his glamorous life squiring Lauren Bush around in fabulous Ralph Lauren clothes. His style, with his fabulous ruffled long hair and his penchant for vest and cardigans, seems suited more to a character from a Hugh Grant movie than a CEO. He has certainly inherited his father's photogenic qualities; whether he's inherited the leadership capabilities is an open question. And honestly, does he even want them? What with the oft-whispered descriptives of Lauren père -- words like "tyrant" and "narcissistic" and "insecure" -- it's likely David is enjoying the long wait in the shadows, content to play dress-up in the world's biggest closet.

Also be sure to check out the other heir apparent posts.

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So I'm looking at Liz Claiborne (NYSE: LIZ) and its latest earnings report. I don't currently have a retailer in my portfolio, so I'm thinking to myself, hey, maybe I'll want to buy Liz after I check out its latest numbers. Well, that didn't happen.

Net sales (excluding discontinued operations) dropped 3% for the fourth quarter, and adjusted net income declined dramatically, coming in at $0.20 per diluted share -- last year at this time, the metric was over four times as big at $0.94. For the year, net sales dropped over 1% (excluding discontinued operations), and adjusted net income was $1.30 per diluted share -- yet another huge drop, considering that Liz Claiborne took in $2.99 per diluted share of adjusted net income in 2006. Oh, and there are other things here that will make any prospective investor shudder -- operational cash flow was down, the dividend was stagnant, and the margins weren't anything to write home about. And comps at some of the company's stores have been challenged (Juicy Couture, however, did report a strong 25% increase in comparable sales in the fourth quarter).

This was an easy one for me -- I'll stay away from Liz Claiborne. The company, which competes with the likes of Jones Apparel Group (NYSE: JNY) and Polo Ralph Lauren (NYSE: RL), currently exists in the land of strategic reviews, cost reductions, and discontinued operations. I don't want to travel to such a land with this particular business.

Disclosure: Steven Mallas owns none of the companies mentioned.

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The earnings crunch continues, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) posted its biggest quarterly loss since its creation in 2006.
• Archer Daniels Midland Co. (NYSE: ADM) missed earnings estimates despite revenue up 50%.
• Biogen Idec Inc. (NASDAQ: BIIB) fourth-quarter profit soared on strong sales of Avonex and Tysabri.
• Chevron Corp. (NYSE: CVX) reported record profits due to surging oil prices.
• CNET Networks Inc. (NASDAQ: CNET) revenue rose but the forecast was not encouraging.
• Data Domain Inc. (NASDAQ: DDUP) third-quarter revenues spiked due to aggressive overseas expansion.
• Elizabeth Arden Inc. (NASDAQ: RDEN) benefitted from overseas growth, which offset weak holiday sales.
• GlaxoSmithKline (NYSE: GSK) warned that 2008 earnings would be affected by competition from generics.
• Harris Corp. (NYSE: HRS) beat estimates and raised its guidance.
• Micros Systems (NASDAQ: MCRS) beat expectations and offered guidance in line with estimates.
• News Corp. (NYSE: NWS) fell short of earnings expectations despite strength in MySpace and Fox News.
• PepsiCo Inc. (NYSE: PEP) results met estimates and it announced further share buybacks.
• Polo Ralph Lauren Corp. (NYSE: RL) beat estimates and raised its guidance.
• SiRF Technology Holdings Inc. (NASDAQ: SIRF) missed expectations due to a seasonal decline.
• Toll Brothers Inc. (NYSE: TOL) expects to report its seventh straight quarterly revenue decline.
• Toyota Motor Corp. (NYSE: TM) attributed solid earnings to growth in China, Russia, emerging markets.
• Wendy's International Inc. (NYSE: WEN) missed earnings estimates, despite beating revenue forecast.
• Western Union Co. (NYSE: WU) posted results just ahead of Wall Street estimates.
• Yum! Brands (NYSE: YUM) posted solid results on overseas growth and share buybacks.

For more BloggingStocks earnings highlights from this past week, see Earnings highlights: Time Warner, Cisco, Gannett, Disney, EDS and others.

Also, Doug McIntyre suspects analysts are expecting too much from earnings in the later half of the year. And Zac Bissonette is skeptical about claims of "record earnings."

Upcoming results to watch for include General Motors Corp. (NYSE: GM), Applied Materials Inc. (NASDAQ: AMAT), Coca-Cola Co. (NYSE: KO), Deere & Co. (NYSE: DE), and Comcast Corp. (NASDAQ: CMCSA).

Visit AOL Money & Finance for more earnings coverage.

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MOST NOTEWORTHY:

• JP Morgan downgraded shares of Cisco Systems Inc (NASDAQ: CSCO) to Neutral from Overweight following its Q2 results, as they believe the company's international exposure is not enough to offset slowing in North America and Europe. Shares were also downgraded to Neutral from Outperform at Baird, citing the meaningful slowdown in fundamentals.
• Lehman downgraded Virgin Mobile USA Inc (NYSE: VM) to Equal Weight from Overweight based on reduced visibility following its Q4 report.
• Polo Ralph Lauren Corporation (NYSE: RL) was lowered to Hold from Buy at Citigroup, as they believe the company is facing fundamental challenges in key markets and a lack of visibility on the Japanese market. They see more upsideelsewhere.

• Bear Stearns downgraded BT Group Plc (NYSE: BT) to Peer Perform from Outperform.
• Think Equity lowered Napster Inc (NASDAQ: NAPS) to Accumulate from Buy.
• UBS downgraded Elbit Systems Ltd (NASDAQ: ESLT) to Neutral from Buy.

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After hitting a one-year high of $102.58 in July, the stock hit a one-year low of $50.55 last month. RL opened this morning at $60.94. So far today the stock has hit a low of $60.11 and a high of $62.89. As of 10:45, RL is trading at $62.72, up $5.26 (9.2%). The chart for RL looks neutral and improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a March bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just seven weeks as long as RL is above $50 at March expiration. Polo would have to fall by more than 20% before we would start to lose money. Learn more about this type of trade here.

RL hasn't been below $50 at all in the past year and has shown support around $52 recently. This trade could be risky if the sour feeling surrounding the US economy continues for the next few months, but even if that happens, this position could be protected by the fact that the company caters to upper-class consumers.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in RL.

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Today's Wall Street Journal has an article about the cost-cutting measures going on retailer, JC Penney (NYSE: JCP). The article, essentially an interview with CEO and Chairman, Myron "Mike" Ullman III, details Ullman's changing of gears, from aggressive store expansion and online growth to scaling back in the face of a looming recession.

The CEO is expected to announce today plans to merge the buying and marketing operations for store and online sales, cutting as many as 200 jobs.

In the article, Ullman says he may scale back store expansion over the next two years.

Getting more of the consumer's wallet

Ullman says, "Half of the families in the U.S. shopped with us at least once last year. But we only get 7% of their spending. So, our biggest opportunity in the downturn is to make every visit they make to our store, Internet or catalog more productive by offering more innovation."

Expanding product lines

Ullman says that Penny's is still planning to launch its much vaunted new product line, American Living, with Polo Ralph Lauren (NYSE: RL). "We think it's a billion-dollar idea...American Living is J.C. Penney.'"

Ullman has been the conductor of a growing retail orchestra. While 2007 was a tough year for the retailer, JC Penny has turned its stores around, its product assortment has been refreshed, and Ullman seems to have a handle on where the consumer and market is going.

2008 should prove to be a pivotal year for this retailer.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

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• Caris & Company initiated coverage on Research in Motion (NASDAQ: RIMM) with an Average rating and a $96 target price. It also initiated coverage on Nokia (NYSE: NOK) with an Above Average rating.
• Stanford Research initiated coverage on Microsoft (NASDAQ: MSFT) with a Buy and on Red Hat (NYSE: RHT) with a Hold.
• Bear Stearns upgraded Nordstrom (NYSE: JWN) from Peer Perform to Outperform and downgraded Saks (NYSE: SKS) from Peer Perform to Underperform.
• Jefferies & Co downgraded Adobe Systems (NASDAQ: ADBE) from Buy to Underperform, lowering that target price from $50 to $30.
• Banc of America downgraded Polo Ralph Lauren (NYSE: RL) from Buy to Neutral. It also downgraded Schlumberger (NYSE: SLB) for Outperform to Sector Perform.

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Doesn't it seem like another day where it is impossible to make money? We have earnings season without any sense that anybody's numbers can be raised. We have an ennui that comes from months of pounding and indecision, and we have stocks that can't seem to go up to save their lives.

Take retail and restaurants. Yet you can't help but wonder whether a Darden (NYSE: DRI) (Cramer's Take) or a Brinker (NYSE: EAT) (Cramer's Take) or a Coach (NYSE: COH) (Cramer's Take) or a Limited (NYSE: LTD) (Cramer's Take) can come back. You can't help but wonder if there's not an Urban Outfitters (NASDAQ: URBN) (Cramer's Take) out there that can turn around or a TJX (NYSE: TJX) (Cramer's Take) that can suddenly hold its own and start rising.

Can Ralph Lauren (NYSE: RL) (Cramer's Take) be that bad? Are J.C. Penney (NYSE: JCP) (Cramer's Take) and Kohl's (NYSE: KSS) (Cramer's Take) never coming back? Did Macy's (NYSE: M) (Cramer's Take) so shoot itself in the foot that it can't recover?

Lowe's (NYSE: LOW) (Cramer's Take)? Saks (NYSE: SKS) (Cramer's Take)? Bed Bath & Beyond (NASDAQ: BBBY) (Cramer's Take)? What about Liz Claiborne (NYSE: LIZ) (Cramer's Take) and Jones NY (NYSE: JNY) (Cramer's Take)?

Does anyone even know how vicious the bear market in these stocks is? Not all of these companies are brain-dead.

Or how about Morton's (NYSE: MRT) (Cramer's Take), Ruth's (NASDAQ: