MORNING COFFEE

SEC looks Into Berkshire Hathaway. The SEC is looking into the timing of Berkshire Hathaway's (BRK.A/BRK.B) disclosures relating to its purchase of Burlington Northern Santa Fe. Prior to its purchase offer, Berkshire held a 22.6% stake in Burlington, and was required to alert other shareholders if it had any "plans or proposals" to control a company. The disclosure needed to be filed with the SEC within a few business days. Berkshire made an offer on October 23, 2009 and didn't amend its securities holdings until Nov. 3, the day the acquisition was announced.

Banks Disclose Greek Exposure.  BNP Paribas reported a Q1 net profit of €2.3 billion and disclosed its exposure to Greek sovereign debt. BNP put its exposure at €5B ($6.5B), the largest among French banks.  Yesterday, Societe Generale (SCGLY) disclosed a €3B exposure to Greek sovereign debt and Credit Agricole (CRARY) said its exposure is €850M.

BP’s Liability May Increase. The White House and Congress are putting together a proposal that would raise BP's (BP) liability cap on damages from the Gulf oil spell. At present, oil companies are liable to pay up to $75 million for expenses beyond the actual clean-up costs.  The new proposal would raise the cap to $10 billion.

Upgrades

Weyerhaeuser (WY): Argus raised their rating from Hold to Buy and placed a target price of $59.00 on the company.

Coverage Initiated

Corning (GLW): Sterne Agee initiated coverage with a Buy rating and a target price of $24.00.

SanDisk (SNDK): Sterne Agee initiated coverage with a Buy rating and a target price of $50.00.

Micron (MU):  Sterne Agee initiated coverage with a Buy rating and a target price of $13.00.

Coverage Reiterated/Price Target Changed

Electronic Arts (ERTS): Wedbush reiterated their Outperform rating and raised their target price from $20.00 to $23.00.

Medifast (MED): Northland Securities reiterated their Outperform rating and raised their target price from $35.00 to $37.00.

Hot Topic (HOTT): FBR Capital reiterated their Market Perform rating and lowered their target price from $8.00 to $7.00.

Agrium (AGU): Canaccord Adams reiterated their Hold rating and lowered their target price from $80.00 to $75.00.

Earning Reports

Expeditors International of Washington (EXPD): Reported Q1 EPS of $0.28 in-line on revenue of $1.2 billion.

DS Uniphase (JDSU): Reported Q3 EPS of $0.10 Beating estimates by +$0.01 on revenue of $333 million.

Microchip Technology (MCHP): Reported Q4 EPS of $0.40 Beating estimates by +$0.03 on revenue of $278 million.

Symantec (SYMC): Reported Q4 EPS of $0.40 beating estimates by +$0.03 on revenue of $1.5 billion. 

Transocean (RIG): Reported Q1 EPS of $2.22 beating estimates by +$0.12 on revenue of $2.6 billion. 

CIGNA (CI): Reported Q1 EPS of $1.01 beating estimates by +$0.11 on revenue of $5.2 billion.

Fortress Investment Group LLC (FIG): Reported Q1 EPS of -$0.58 missing estimates by -$0.50 on revenue of $160 million.

MetroPCS Communications (PCS): Reported Q1 EPS of $0.06 in-line on revenue of $971 million.

·         Futures: Dow +0.3%. S&P +0.4%. Nasdaq +0.1%. Crude flat at $79.99. Gold +0.8% to $1184.

·         Asia: Japan -3.3% to 10696. Hong Kong -1.0% to 20133. China -4.1% to 2740. India -0.6% to 16988.

·         Europe: London +0.3%. Paris +0.2%. Frankfurt +0.6%.