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Morning Links: 19 November 2008

SouthEast Waffles chief resigns Pinnacle board seat, Genesco guides down, Citi says stay away from hospitals, two locals make Deloitte list, and more...

11-19-2008 7:07 AM

Jim Shaub, the embattled chief manager of SouthEast Waffles, has resigned from the board of Pinnacle Financial Partners. Shaub, whose franchisor and creditors have accused him of mismanagement and other shenanigans, in late September sold more than half his Pinnacle holdings.

Shares of Genesco are likely in for another rough day after the retailer (Ticker: GCO) said it expects to earn 20 percent less than the 53 cents analysts were expecting for the third quarter. The company also lowered its fiscal fourth-quarter outlook.

Citi analyst Gary Taylor – who's not exactly been upbeat on the hospital sector – says traffic is dropping off and that his team has "zero conviction to buy the stocks at current levels."

Charles Boorady, another Citi analyst, says pharmacy benefit managers are poised to benefit in what will likely be a changing 2009 health care landscape, but doesn't think CVS Caremark is a company to buy.

The 'extremely profitable' NotifyMD is opening its seventh U.S. call center in Maine with the contracts in place to bring it up to capacity.

The Wall Street Journal writes about the long-term growth prospects of private prison operators like CCA. (Ticker: CXW)

BioMimetic Therapeutics and PureSafety are the only two Tennessee businesses to make Deloitte's 2008 list of the fastest-growing technology companies.

ddingess@medvest.net States:

Posted on 11/19/2008 10:02 am

Mr. DeLombaerde,

Why do you use a word like "shenanigans" which has a connotation of deceit or trickery when all Mr. Shaub is accused of is possible mismanagement (for which he will likely be absolved)?

It seems to me the real "shenanigans" in this matter where by the former CFO and by Waffle House (the franchisor) that is trying to take back control of one of its largest franchisees without paying for it. Perhaps you might investigate that angle.

ddingess@medvest.net States:

Posted on 11/19/2008 10:07 am

Just noticed my typo (no spell check on this site)... in this matter "were" not "where".

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