Analyst Picks & Pans June 11, 2010, 11:29AM EST

Stock Picks: Bristol-Myers Squibb, Clarient, Dell, eBay

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On June 10, Dell said Chief Executive Officer Michael Dell is in talks with the U.S.Securities & Exchange Commission to settle allegations related to the company's relationship with Intel Corp. (INTC). The settlement would "involve alleged violations of negligence-based fraud provisions of the federal securities laws, as well as other non-fraud-based provisions," Dell said in a statement. The company has also set $100 million aside to settle an existing agency investigation.

Discussions relate to the relationship between Dell, the third-largest computer maker, and Intel, the world's biggest manufacturer of semiconductors, Dell said without elaborating.

On June 10, Dell also delayed filing its quarterly report as it revises financial results to book the $100 million provision.

"Frankly, we are not surprised with this as we have long been a critic of the company's accounting practices and quality of earnings," Wu wrote in a note. "Perhaps this is why Michael Dell recently commented at an investment conference that he had considered taking DELL private."

Wu said he remains concerned with Dell's quality of earnings and believes "a sustainable turnaround could prove difficult."

EBay Inc.: Janney Montgomery Scott equity analyst Shawn Milne maintained a buy rating on shares of online auctioneer eBay Inc. (EBAY) on June 11. He lowered a fair value estimate on the shares to $29 from $30.

Milne said in a note that he was lowering his second-quarter estimates for revenue to $2.14 billion from $2.18 billion, and for earnings per share (EPS) to 37 cents from 38 cents due to the effect of foreign currency translation and expectations for a decline in growth of gross merchandise volume in the U.S. to a range of 2 to 3 percent from 5 to 6 percent. He also lowered his full-year 2010 estimates for revenue to $8.94 billion from $9.07 billion, and for EPS to $1.62 from $1.65.

"[W]e believe eBay's playbook of driving traffic to its top-rated sellers should ultimately improve the buying experience," Milne wrote. He also said an increased merchandise selection and an improved buying experience should stem market share losses and allow the eBay Marketplace to grow "in line with the overall e-commerce market" in 2010, and that he continues to expect strong growth at the company's PayPal electronic payment services unit.