In the first quarter of 2008, management made three strategic acquisitions in order to grow and expand its RPO business and expand its global network, especially in emerging markets. Manpower continues to execute its key strategies of elevating and broadening client relationships while improving efficiency through speed and quality. The company also provides assistance and employment strategies to HR managers as they seek skilled employees to fulfill permanent, temporary and contract positions. Manpower provides employee training and outplacement services.

Manpower is currently trading at 8.8 times trailing 12 month earnings. Over the last five years, Manpower stock has traded in a P/E range of 8.5 to 30; however, the stock has traded at a P/E multiple above 24 only during periods of cyclical earnings decline. The company has generated strong revenue and earnings growth since 2006 through the second quarter of 2008. The target of $76.50 is based on a 14 P/E on trailing 12 month earnings.

Tessera Tech's Nice Entry Point

Tessera Technologies, Inc.'s (TSRA) advanced packaging technologies have industry-wide application. June quarter top-line results beat consensus estimates while the bottom-line missed slightly. We continue to rate shares of TSRA a Buy.

The stock is currently trading at a 15.1x multiple of our 2009 earnings estimate (P/E). Considering the company's market strength and the potential of its IP, we expect solid revenue and earnings growth to continue, even without any further blockbuster developments. The firm has won five major lawsuits and now receives royalty on approximately 80% of the DRAM market, which should be a catalyst in 2009.

The management asserts that once DDR2 replaces DDR1, growth rates should be greater than 50%, and they are starting to develop DDR3. Given Tessera's cash generating history and attractive business model, we believe the stock should and will continue to trade above peer group valuation multiples. We acknowledge concerns over increased litigation costs and the potential for large swings in revenue caused by large irregular settlement payments, but these concerns have created this attractive entry point.

We would be more concerned with rising litigation costs if the company were not winning most of the cases. We recommend the purchase of this stock for investors that have a time horizon greater than two quarters. We are reiterating our target price of $35.00, which represents a 22.4x P/E.

Gentiva Health's Neutral Outlook

Gentiva Health Services, Inc. (GTIV) recently reported better-than-expected 2Q08 net income of $12 million (up 34% y/y), or EPS of $0.41, reflecting solid increases in Medicare related revenues in Home Health buoyed by higher episodic patient admissions (up 10% y/y), increases in revenue per episode.

We believe the $147 million sale of CareCentrix is positive in terms of both lowering long-term debt and supporting the management's stated growth via acquisition strategy of its core home care business. We retain a Hold rating at current levels.

The aging of the population and an increasing focus on healthcare cost containment underpins a shift towards lower-cost (and more convenient) solutions, such as home healthcare. Gentiva is well positioned to benefit from growth of the home healthcare industry through both its geographic reach and multiple service offering.

Gentiva's strong balance sheet provides financial flexibility to pursue acquisitions and expansion into new markets or fund share repurchase activity. The company has recently initiated a number of productivity initiatives designed to contain administrative costs and foster internal growth, which if successful will cushion operating margins to any sudden changes to government-sourced revenues. The company's purchase of Healthfield enhances operations and potentially improves efficiencies in Alabama, Georgia, North Carolina and Tennessee, while establishing a presence in the South Carolina market.

We have valued shares of GTIV on a forward price/earnings (P/E) basis, as well as a comparison to similar firms in the healthcare sector. Our revised price target of $29 is derived using a multiple of 20.4x FY08 EPS forecast of $1.42 (previously $1.38).

Siliconware Margins Down

Siliconware Precision Industries Co., Ltd.'s (SPIL) results for the second quarter were worse than our estimates. We are discouraged to see capacity utilization falling below 95% for most business divisions, which is a cause of concern.

The company has increased its Capex budget for 3Q08 although is experiencing severe pricing pressure in its memory testing business. There is an indication of further erosion in gross and net operating margins in 2008 due to reduction in average selling prices in all three segments computing, communication and consumer. It is for this reason that we lowered our revenue estimates while lowering our earnings estimate of 2008.

We were shocked by the revenue weakness due to its dependence on its top customers and the uncertainty in global financial markets has not left much upside to the stock, in our opinion, at this time. It is for this reason that we are maintaining our Hold rating on shares of SPIL.