Red Lion Hotels Corporation (NYSE: RLH) recently passed a shareholder rights plan (read: poison pill) designed to entrench management and prevent any so-called strategic alternatives. The move angered Columbia Pacific Opportunity Fund, the single largest shareholder of Red Lion. The hedge fund believes that Red Lion is substantially undervalued and should immediately pursue such alternatives to unlock that value for the benefit of shareholders. Here’s a copy of Columbia’s letter to the board: As the single largest shareholder of the Red Lion Hotels Corporation ("RLHC" or the "Company") we would like to express our sincere disagreement with the Board's recent adoption of a shareholder rights plan.  In addition, we would like to address the Company's current[More...]

Red Robin Restaurants say Business is Mostly the Same as this Time Last Year, 62% of Starwood's Luxury Hotels and Resorts See Steady Business, In Spite of the Economy, 50% of Red Lion Hotels Say Business Has Been Affected by Concerns About Economy [More...]

UPGRADES
NVIDIA NVDA AmTech Research Sell » Neutral
Great A&P Tea GAP CIBC Wrld Mkts Sector Perform » Sector Outperform
ICF International ICFI Stifel Nicolaus Hold » Buy
EXFO EXFO Roth Capital Hold » Buy
Bucyrus BUCY Robert W. Baird Neutral » Outperform
Texas Industries TXI KeyBanc Capital Mkts Hold » Buy
Enbridge ENB RBC Capital Mkts Sector Perform » Outperform
Zumiez ZUMZ Piper Jaffray Neutral » Buy
Shutterfly SFLY Jefferies & Co Hold » Buy
LDK Solar LDK CIBC Wrld Mkts Sector Underperform » Sector Perform
Fairport Comms FRP JP Morgan Neutral » Overweight
Fed Investors FII JP Morgan Neutral » Overweight
Delta Air Lines DAL Bear Stearns Peer Perform » Outperform
Forward Air FWRD Bear Stearns Underperform » Peer Perform
AU Optronics AUO Lehman Brothers Equal-weight » Overweight
Tenaris TS Citigroup Hold » Buy
PPD Inc. PPDI UBS Neutral » Buy
Weingarten Realty WRI UBS Sell » Neutral
AMR Corp AMR UBS Sell » Neutral
Continental Air CAL UBS Neutral » Buy
Northwest Airlines NWA UBS Neutral » Buy
US Airways LCC UBS Neutral » Buy
UAL Corp. UAUA UBS Neutral » Buy
Delta Air Lines DAL UBS Neutral » Buy
Supervalu SVU UBS Sell » Neutral
Reynolds American RAI UBS Neutral » Buy
Shire Pharm SHPGY Robert W. Baird Neutral » Outperform

DOWNGRADES
LSI Industries LYTS Canaccord Adams Buy » Hold
Petrobras Energia Participaciones S.A. PZE Citigroup Hold » Sell
Goldcorp GG RBC Capital Mkts Outperform » Sector Perform
Lamar Advertising LAMR Stanford Research Buy » Hold
Saba Software SABA Brean Murray Buy » Hold
First Potomac Realty FPO BMO Capital Markets Outperform » Market Perform
PS Business Parks PSB BMO Capital Markets Outperform » Market Perform
Equity Res EQR BMO Capital Markets Outperform » Market Perform
Astec Industries ASTE Robert W. Baird Outperform » Neutral
Freightcar America RAIL KeyBanc Capital Mkts Buy » Hold
Alliant Tech ATK Friedman Billings Outperform » Mkt Perform
Hythiam HYTM RBC Capital Mkts Outperform » Sector Perform
Petrobras Energia Participaciones S.A. PZE Bear Stearns Peer Perform » Underperform
IberiaBank IBKC Keefe Bruyette Mkt Perform » Underperform
Red Lion Hotels RLH JMP Securities Strong Buy » Mkt Outperform
Morgans Hotel Group MHGC JMP Securities Strong Buy » Mkt Outperform
Garmin GRMN Deutsche Securities Buy » Hold
Express Scripts ESRX Wachovia Outperform » Mkt Perform
Air Tran Holdings AAI Bear Stearns Outperform » Peer Perform
Tesoro TSO Bear Stearns Peer Perform » Underperform
Family Dollar FDO Bear Stearns Peer Perform » Underperform
Centene CNC Bear Stearns Outperform » Peer Perform
ArQule ARQL Banc of America Sec Buy » Neutral
NCR Corp NCR Robert W. Baird Outperform » Neutral

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Filed under: Analyst upgrades and downgrades, Good news, Annual meetings, Brinker Intl (EAT), Stocks to Buy

MOST NOTEWORTHY: Red Lion Hotels (RLH), Constellation Energy (CEP), Brinker Int'l (EAT), Nvidia (NVDA) and InfoSpace (INSP) were today's noteworthy upgrades:

• Baird upgraded Red Lion Hotels (NYSE: RLH) to Outperform from Neutral based on valuation, brand expansion progress and takeover potential.

• Constellation Energy (NYSE: CEP) was upgraded to Buy from Hold at Citigroup based on higher cash flow expectations and valuation.

• JP Morgan upgraded Brinker (NYSE: EAT) to Overweight from Neutral, and sees potential upside from slower unit development and a possible Mac Grill sale.

• BMO Capital upgraded Nvidia (NASDAQ: NVDA) to Outperform from Market Perform following a strong second quarter.

• Stanford upgraded InfoSpace (NASDAQ: INSP) to Hold from Sell on valuation; They consider the core online segments looks to be priced into the stock and downside support is given with tax credits and the cash balance...

OTHER UPGRADES:

• Citigroup raised Cox Radio (NYSE: CXR) to Hold from Sell.

• JP Morgan upgraded shares of PepsiAmericas (NYSE: PAS) to Neutral from Underweight.

• Friedman Billings upgraded shares of Emulex (NYSE: ELX) to Outperform from Market Perform.

• DirecTV (NYSE: DTV) was raised to Buy from Hold at Gabelli.

• Seagate (NYSE: STX) was upgraded to Buy from Neutral at Goldman.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

 

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