MORNING COFFEE

Dynergy Could Seek Bankruptcy. Dynegy in an SEC filing yesterday, said "in light of our likely covenant non-compliance, we are attempting to amend or replace our existing credit facility." If the company fails, it may be forced to file for bankruptcy.  Any new or amended credit would be less than the current capacity of $1.8 billion and at a higher cost. Dynegy also reported a larger Q4 loss than expected and said it would not provide guidance estimates for 2011.  Investor Carl Icahn had offered to purchase the company for $665 million, which was rejected by shareholders. 

Coverage Initiated

Transocean (RIG): Morgan Keegan initiated coverage with a Market Perform rating and target price of $87.00.

Coverage Reiterated/Price Target Changed

IBM (IBM): Collins Stewart reiterated their Buy rating and raised their target price from $175.00 to $185.00.

Earning Reports

Boston Beer Co (SAM): Reported EPS of $0.87 missing estimates by -$0.03.

Navistar International (NAV): Reported FQ1 EPS of $0.16 missing estimates by -$0.07 on revenue of $2.74 billion, missing estimates by -$0.16 billion.

Children's Place (PLCE): Reported EPS of $1.22 beating estimates by +$0.21.

Suntech Power (STP): Reported Q4 EPS of $2.02 beating estimates by +$1.73 on revenue of $945 million, beating estimates by +$101 million.

·         Futures at 7:00: Dow +0.3%. S&P +0.2%. Nasdaq +0.2%. Crude -0.3% to $104.73. Gold +0.2% to $1430.30.

·         Europe: London -0.1%. Paris +0.3%. Frankfurt +0.7%.

·         Asia: Japan +0.6% to 10589.5. Hong Kong +0.4% to 23810. China +0.1% to 3003. India +0.2% to 18470.