Updating Our Aggressive Stocks Barnes & Noble Inc., Texas Instruments Inc. and Autodesk Inc.

Article Excerpt

BARNES & NOBLE INC. $41 gained 6% after a hedge fund increased its stake in the company, from 2.3% to 8%. The move raised speculation that the company could become a takeover target. Insiders control 27% of the stock, so a takeover seems unlikely. Still, the move helps highlight the company’s improving sales and earnings. Buy. TEXAS INSTRUMENTS INC. $31 earned $0.46 a share in the third quarter of 2006, up 21.1% from $0.38 a year earlier, while sales grew 15.2%, to $3.8 billion from $3.3 billion. But a drop in new orders spooked investors, and the stock fell 5%. We feel the long-term outlook for cellphone chips is strong, particularly as high-speed wireless service spreads to more areas. Buy. AUTODESK INC. $37 has held up nicely as it sorts out accounting errors related to stock option grants. New product launches and a loyal client base add to its long-term appeal. But the stock will likely make little progress until it completes…

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