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Tobacco titan Philip Morris International Inc. (NYSE: PM) is snapping up the South African operations of Swedish Match for a cool 1.75 billion rand, or roughly $224.7 million. The acquisition is part of PM's broader strategy to gain a foothold in the smokeless tobacco arena. Currently, Swedish Match South Africa is the market leader in the South African pipe tobacco and snuff categories.

"This financially attractive acquisition represents an excellent strategic fit for our business in South Africa," said Jean-Claude Kunz, PM's president of Eastern Europe, Middle East, and Africa. "We firmly believe that merging the two businesses will provide us with the talent, infrastructure, and expertise to further build and grow our portfolio of strong brands in this important market."

While not attracting many headlines, a variety of major companies have raised large amounts of capital lately, such as HCA, Dole Foods and Altria (NYSE: MO). However, the capital source has been mostly the debt markets.

But as things ease up, might equity investors warm up to new offerings?

Well, we should find out fairly soon. China Zhongwang Holdings Ltd., which is the largest manufacturer of extrude aluminum, is planning a public offering on the Hong Kong stock exchange. The company wants to raise about $1.6 billion. No doubt, it would be the largest equity offering for the year.

Keep in mind that China's government has pumped huge amounts of liquidity into the economy. And investors have responded -- by buying up shares.

Lorillard (NYSE: LO) closed at $57.35. LO, Altria Group (NYSE: MO), and Reynolds American (NYSE: RAI) have recently announced an increase in cigarette prices. LO April and June option implied volatility of 47 is below its 26-week average of 51, according to Track Data, suggesting decreasing price movement.

RAI closed at $33.54. RAI April and August option implied volatility of 37 near its 26-week average according to Track Data, suggesting non-directional price movement.

MO closed at $16.60. MO April and September option implied volatility of 35 is below its 26-week average of 40, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

TheStreet.com's Jim Cramer identifies the eight Dow components that will become too cheap not to buy.

When I arrived at my worst-case view that the Dow could reach 5320, my first reaction wasn't, "Look out below." It was more like, "Wait a second, how much I would like to buy these stocks at those levels?" Then I started thinking, "What do I do if it gets there and I am not in? Will it stay down there? Is it right to avoid a market that's cut by almost two-thirds in such a short period of time when some companies with really good earnings power might be selling at prices that we might never see again?"

But which ones?

Back in 2001, Jim Collins had a monster of a business bestseller with his book Good to Great: Why Some Companies Make the Leap. . . and Others Don't. In it, Collins explored companies that have become hugely successful and found that success generally comes as a result of focusing resources on things that you're good at instead of mindlessly diversifying.

Arkansas Business writer Jeff Hankins read the book again to see how the companies profiled have weathered the downturn. The companies profiled were Abbot Laboratories (NYSE: ABT), Kroger (NYSE: KR), Kimberly-Clark (NYSE: KMB), Walgreens (NYSE: WAG), Altria (NYSE: MO), Nucor (NYSE: NUE), Pitney Bowes (NYSE: PBI), Wells Fargo (NYSE: WFC) and tragically, Fannie Mae and Circuit City. Gilette was eliminated from contention because of a merger.

Altria (NYSE: MO - option chain) stock is falling today after a Florida jury found that the death of a smoker was caused by his addiction to cigarettes. MO's subsidiary Philip Morris now is involved in the second phase of the trial , which is to decide who is at fault for his addiction. This is the first case in which an individual smoker's family sued a tobacco company for death by cigarette addiction. This is a tough precedent for MO and the cigarette industry, as it opens the industry up to potentially limitless civil suits from individual smokers.

While I believe that cigarette stocks are well-suited to our current environment, Phillip Morris International (NYSE: PM), a former subsidiary of MO, looks much more attractive to me, due in part to its lower exposure to the American legal system. PM is off by only 0.6% today compared to MO' s 3.5%. If you think Altria stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MO.

5 Dividend Stocks for This Market
These picks have generous yields - and a history of dividend hikes. They include BP, Altria, Vodafone, PPG Industries and Bristol-Myers Squibb.
http://www.smartmoney.com/Investing/Stocks/5-Dividend-Stocks-for-This-Market/

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Altria Group Inc. (NYSE: MO) Q4 profit rose on higher prices, and its forecast matched expectations.
• Amgen Inc. (NASDAQ: AMGN) Q4 earnings grew on cost cutting but revenue remained flat.
• Black & Decker Corp. (NYSE: BDK) shares tanked after the dismal Q4 report, and it announced job cuts.
• Carpenter Technology Corp. (NYSE: CRS) Q2 numbers resulted in a downgrade from one analyst.
• ConocoPhillips (NYSE: COP) reported a Q4 loss due to writedowns from recent acquisitions.
• DuPont (NYSE: DD) swung to a bigger-than-expected Q4 loss and its revenue fell as well.
• Eli Lilly & Co. (NYSE: LLY) swung to a Q4 loss on acquisition costs but reaffirmed its guidance.

If you thought that four days of rallying was too much, it looks like the traders did too. Financials took a breather after critics started panning the BAD BANK theory. We also had much weaker durable goods and wider jobless claims to pour fuel on the fire. Here are today's closing unofficial bell levels:
DJIA: 8,147.73 (-2.72%)
S&P500: 845.10 (-3.32%)
NASDAQ: 1,507.84 (-3.24%)
Top Analyst Upgrades
Top Analyst Downgrades

Altria Group Inc. (NYSE: MO) suspended its share buyback plan after its net earnings fell sharply. Maybe investors will have to decide if a dividend north of 7% is finally enough. This stock was just above the flat-line at $16.83 right before the close.

Ford Motor Co. (NYSE: F) posted a loss of $5.9 billion, or $2.46 per share, in the fourth quarter, but it said that it still has no plans to seek federal aid unless economic conditions worsen. Ford burned through $5.5 billion in cash during the quarter. Excluding one-time items, Ford lost $1.37 per share, below estimates of a loss of $1.30 per share. Revenue fell to $29.2 billion, down from $45.5 billion for the fourth quarter of 2007. Ford's shares are gaining nearly 2.5% in premarket trading. Fifteen minutes after the open, Ford shares were 2.2% lower.

Starbucks (NASDAQ: SBUX) reported worse-than-expected quarterly results late Wednesday after the close, as its quarterly profit dropped 69%. It also also announced 6,700 more job cuts and plans to close 300 stores. As the company has been hurt by tighter consumer spending, it said it will not provide any sales or earnings guidance. SBUX shares are defclining over 4% in premarket trading. Fifteen minutes after the open, SBUX shares were flattish.

In the News:
Once in a Lifetime Refinancing Opportunity
Mortgage rates have dropped sharply over the past few weeks. They are at their lowest levels since the 1960's. But is refinancing right for you? It might be, but there are caveats. Jim Cramer takes a closer look at who it makes sense for now.
http://www.mainstreet.com/article/home-auto/buying-home/cramer-once-lifetime-refinancing-opportunity
Also: Some People Getting 30-Year Mortgages Under 5%
Calculator: Should I Refinance?

10 Best Stocks for 2009
We're mired in the grizzliest bear market in decades. But the good news is that stocks have been marked down to holiday-sale levels. Here are ten stocks FORTUNE thinks are poised for strong returns in 2009 and beyond. They include Altria, Annaly Capital Management, Dell, Devon Energy, Diamond Offshore, Fluor, Johnson & Johnson, Medco Healthcare, Pfizer and Potash.

Altria (NYSE: MO - option chain) shares have slid lower today after the US Supreme Court ruled against the Phillip Morris USA in a "light" cigarette case. The ruling allows MO to be sued for deceptive advertising of light cigarettes, which in reality are no better than normal ones. If you think that the stock won't rise by too much in the coming months, then now could be a good time to look at a bearish hedged trade on MO.

This morning, MO opened at $15.71. So far today the stock has hit a low of $14.96 and a high of $15.88. As of 12:40, MO is trading at $15.26, down 8 cents (-0.5%). The chart for MO looks bullish and S&P gives MO a positive 5 STARS (out of 5) strong buy ranking.

For a bearish hedged play on this stock, I would consider a March bear-call credit spread above the $18 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in three months as long as MO is below $18 at March expiration. Altria would have to rise by more than 17% before we would start to lose money.

MO hasn't been above $18 since early November and shown resistance around $16 recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in MO.

Analyst upgrades:

• JP Morgan upgraded Altria (NYSE: MO), citing the company's 25% cash return to shareholders by 2010 and its market leadership.
  
• RBC Capital upgraded Core Laboratories (NYSE: CLB) based on its solid balance sheet and liquidity, strong market positions, and technology-driven products.
  
• RBC Capital believes Schlumberger's (NYSE: SLB) earnings will decrease the least vs. its peers through 2010 and notes its breadth of products/services.
• Tellabs (NASDAQ: TLAB) upgraded to Overweight from Equal Weight at Barclays.
  
• Bally Tech (NYSE: BYI) upgraded to Buy from Neutral at Goldman.
  
• Best Buy (NYSE: BBY) upgraded to Buy from Neutral at Piper Jaffray.

Analyst downgrades:

• Goldman downgraded Apple (NASDAQ: AAPL) citing consumer spending concerns and valuation.
  
• Merrill downgraded JP Morgan (NYSE: JPM) citing expectations for credit costs to get worse in the US.
  
• Wachovia downgraded a handful of names, including Chesapeake (NYSE: CHK), in the Exploration & Production space as they believe natural gas prices have more downside in order to balance supply/demand fundamentals.

General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) may get help from the Bush administration. President Bush said in an interview today that "an abrupt bankruptcy for the autos could be devastating for the economy." He signaled he may use TARP funds for that, but didn't provide a timeline or other details. GM shares are up 4.8% in premarket, Ford's shares are up 2%. Shares of both opened about 3% higher.

Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) probably will report fourth-quarter losses this week on shrinking asset values and a decline in fees for businesses. But even the deep cost cutting measures the investment firms -- now turned banks -- may not help help shareholders enough as the companies face another year of slumping revenue. The demand for their services is and will continue to be limited in what is the worst financial crisis since the Great Depression. GS shares are down 2% in premarket trade.

Banco Santander (NYSE: STD), Nomura (NYSE: NMR) and Royal Bank of Scotland (NYSE: RBS) are among the victims ex-Nasdaq Chairman Bernard Madoff' $50 billion Ponzi scheme. Santander said its customers had an exposure of around $3.1 billion, while Japan's Nomura has an exposure of around $302 million. STD shares are down 1.5% and RBS shares up 1.7% in premarket trade.

[Update 10:00 am:
Huntsman Corp. (NYSE: HUN) shares were down about 35% a little after the open after it has ended its $6.5 billion agreement to be taken over by Hexion Specialty Chemicals Inc. and agreed to a $1 billion legal settlement.
Apple Inc. (NASDAQ: AAPL) shares were down about 4% a little after the open on a downgrade. Goldman Sachs downgraded the iPhone and Mac maker to Neutral from Buy due to deteriorating consumer spending.
JPMorgan (NYSE: JPM) shares slumped nearly 6% after a Merrill Lynch analyst downgraded JPM to Underperform from Neutral.
Honeywell (NYSE: HON) shares gained nearly 7.5% after the manufacturer affirmed a lower 2009 outlook and said it expects profits to fall 6% to 16% as the deepening global recession hits markets it serves.]

TheStreet.com's Jim Cramer says it's too crazy for a lot of people, and they're cashing out of this casino.

Last night, during a talk at the 92nd Street Y in New York, I fielded questions from an overwhelming group of eager and confused investors, almost all of whom are bewildered, unhappy and fed up. They don't trust stocks and they think that the day-to-day nonsense that passes as a stock market is pure manipulation, that all of the wrong people are getting money from the government and that they wish somehow they could just get back to even so they can get out of this game.

I think they are right.

To me, when I see Occidental (NYSE: OXY) (Cramer's Take) up 5 on a nothing day, when I see Chevron (NYSE: CVX) (Cramer's Take) and Exxon (NYSE: XOM) (Cramer's Take) once again up huge amounts, when I see the market double in the last 40 minutes off obvious manipulation by products that serve only to manipulate, I totally agree with them. When I see the raids on the financials, or the insurers, when I see the shorts pressing JPMorgan (NYSE: JPM) (Cramer's Take) and Morgan Stanley (NYSE: MS) (Cramer's Take) down through aggressive shorting without upticks and ETFs, what am I supposed to think? When I see the consumer product stocks get slaughtered on news that isn't new -- Procter (NYSE: PG) (Cramer's Take) says business is tough? Well, hello, they have been saying it all along -- or steel stocks rally big on orders that aren't even here, as in Nucor (NYSE: NUE) (Cramer's Take), I say, "Forget it, the mechanism's not working."