EFII Elec For Imaging downgraded to Sell at Argus (9.47 -0.33)

Argus downgrades EFII to Sell from Hold, now projecting a FY09 loss per share of ($0.06), from EPS of $0.52 (consensus $0.43). Firm says the company's business remains under severe pressure due to economic conditions. The company's recent sale of real estate for $137.5 mln appears to be supporting the stock price for now. Firm estimates that the proceeds from the real estate, combined with further costcutting, will translate into a cash position of $4.25 per share -- not enough, in firm's view, to support the current stock price of about $9.50. Consider that a 25% jump in the stock price in the past month has been followed by an earnings warning from management, firm could see the shares pull back to around $7, representing a decline of more than 25%.