We are maintaining our diluted EPS estimates at 1

Buy Cytori Therapeutics to $8This is clearly an exciting time for Cytori Therapeutics (NASDAQ: CYTX), as thecompany has begun to record product sales revenues from early-adopter CelutionSystem placements in Europe and Asia. Additionally, sales of StemSource cell banking are also now beginning to ramp.Ultimately, the clinical data will determine the pace at which the rampcontinues in the next several years. We have been encouraged by the smallclinical data seen so far using Cytori's technology. CAI Int'l Staying ContainedFounded in 1989, CAI International, Inc.

(NYSE: CAP) is the one of the world'slargest intermodal container leasing and management company, with roughly a 6market share of the worldwide leased container fleet. This consists ofstandardized steel boxes used to transport cargo by a number of means, includingship, truck, and rail. We are maintaining our diluted EPS estimates at $1.31 for 2008 and $1.35 for2009. We are continuing our Hold on CAI International, but cutting our targetprice to $3.25 CAP pays no common dividend.

Sinopec Relies on Chinese MarketWe are maintaining our Hold recommendation on China Petroleum & Chemical Corp.,or Sinopec (NYSE: SNP) ADRs ahead of fourth-quarter results. But market-distorting fuel price caps and heavy taxesoffset most, if not all, of the Chinese market positives, in our view. Additionally, extent of the slowdown in the Chinese market, in response to theglobal economic weakness, still remains uncertain Our target price is $62 pershare Smith Micro Keeps Its Buy RecSmith Micro Software, Inc. (NASDAQ: SMSI)is a developer of wirelesscommunications software and utility software for multiple OS platforms. However, we believe the weakening macro environment and decliningconsumer spending is likely to slowdown its main segment, Connectivity We therefore lower our estimates for 2009.