Chicago, IL – November 25, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Citigroup Inc. (C), Intuit Inc. (INTU), ENI S.p.A (E), BP plc (BP) and Royal Dutch Shell (RDS.A).

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Here are highlights from Tuesday’s Analyst Blog:

Citi Expects Strong Economic Growth

Citigroup Inc. (C) forecasts strong economic growth in many countries in 2010. But although the company expects several countries to experience economic growth, it predicts that the growth will be somewhat uneven.

According to the annual report of Citi’s Investment Research and Analysis group, though growth will be strong and even across major economies in the beginning of the year, it will be uneven later. Citi expects Asia, excluding Japan, to experience sustained economic growth. Though the U.S. is expected to see fairly strong economic growth, the recovery will be more gradual in Europe and Japan.

Citi also upgraded its 2010 gross domestic product forecasts for the U.S., Japan, the U.K., Australia, New Zealand, Hong Kong, Korea, Argentina, Hungary, Poland, the Czech Republic and Turkey.

The report also suggested that Central Banks are unlikely to hike key interest rates through the next year. However, credit availability is expected to remain restricted at least for a year or two as banks seek to raise additional capital under regulatory pressure. Also, inflation on a global basis appears to be controlled. Additionally, countries will need to achieve fiscal sustainability to post strong economic growth.

Disappointing Forecast at Intuit

Intuit Inc. (INTU) recently reported results for the first quarter. Revenues increased 2% to $493 million, driven by growth in core businesses.

Revenues from Financial Institutions segment increased 7% while Employee Management Solutions Payroll service increased 9%.

Loss per share came in at 10 cents, much better than the Zacks Consensus Estimate of a loss of 22 cents per share, mainly due to cost control activities undertaken by the management. The company had postponed some of its marketing costs for the quarter.

During the quarter, the company repurchased $300 million worth of stock in the quarter, and the board has now approved a new repurchase program of $600 million. Intuit ended the quarter with more than $1 billion in cash and investments.

Going forward, management expects revenues between $3.3 billion and $3.43 billion in fiscal 2010, up 4% – 8%. Earnings per share are projected between 29 cents and 32 cents. Revenues for the second quarter are projected between $800 million and $835 million, up 1% – 6%. Earnings per share are expected to come between 15 cents and 18 cents.

The forecast was much lower than the street estimates, leading to a 2% fall in share price after the results were announced. On the conference call, management stated that the company is yet to find a significant improvement in business sentiment among small business customers who use the company’s flagship products such as QuickBooks software and Turbo Tax programs.

ENI Buys Uganda Blocks

ENI S.p.A (E) entered into a definitive agreement with Heritage Oil to buy the latter’s 50% interest in blocks 1 and 3A in Uganda . Total consideration for the contract is $1.35 billion. The contract also provides an additional consideration of $150 million, either in cash or in kind, on fulfillment of certain conditions in the future.

The company was pursuing an approach of sustainable development through its expertise and technologies in the African continent. And this transaction is part of this development strategy.

Located in the Lake Albert basin, blocks 1 and 3A have resources of more than 1 billion barrels of oil equivalent. Of this, nearly 70% has already been discovered with approximately 28 wells drilled in the area. The agreement is subject to approval by the competent authorities.

Eni has been producing in the African continent for a long time. The company is currently acting as an operator in many oil-producing countries such as Angola, Ghana, Nigeria, the Republic of Congo, Gabon and Mozambique. Total production per day from these regions currently amounts to about 450,000 barrels of oil equivalent.

Eni’s upstream portfolio spreads over a number of fields in several countries. Its lower reliance on a handful of large fields, both in its existing portfolio and its future growth pipeline, is in contrast to the growth profile of BP plc (BP) and Royal Dutch Shell (RDS.A), both of which are heavily dependent on the delivery of a few key projects.

In addition, Eni’s lack of exposure in the refining and marketing space is also a significant positive in the current compressed margin environment, in our view. We, however, believe that all these positives are already reflected in its valuation. As such, we recommend a Neutral rating for the stock.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Chicago, IL – November 20, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), KT Corp. (KTC), SK Telecom (SKM), China Unicom (CHU) and American Express Company (AXP).

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Here are highlights from Thursday’s Analyst Blog:

South Korea Welcomes iPhone

Apple Inc.’s (AAPL) iPhone is finally reaching the hands of South Korean mobile users. The country’s telecom regulator Korea Communications Commission (“KCC") has granted Apple the license to sell the iconic handset in the domestic cell phone market. KCC has also lifted the restrictions that prohibited location-based services on smartphone devices such as the Google Maps application on iPhone.

South Korea’s second-largest wireless carrier KT Corp. (KTC) will start booking Internet order for iPhone (3G & 3GS) soon and begin selling it from Nov 28, 2009. The company targets to initially sell 150,000 units priced between KRW250,000 and KRW300,000 (US$216 and US$260). KT’s peer SK Telecom (SKM), the largest mobile operator in the country, is still negotiating with Apple for securing distribution rights.

South Korean wireless market is technologically advanced and relatively mature with roughly 47 million total subscribers, representing 96% penetration of the country’s population. Currently, the country’s cellular handset market is dominated by local companies such as Samsung and LG Electronics, two of the world’s leading handset manufacturers.

With KCC’s approval, South Korea is set to become one of the last major Asian countries to get the iPhone. The device has been already launched by China Unicom (CHU) in China in October 2009. Additionally, iPhone is also being sold in other major markets such as India, Japan and Australia.

KCC’s approval to allow foreign handset vendors to enter the domestic market is aimed at increasing the options for brand-conscious cell phone users rather than just limiting their choice to indigenously manufactured devices. In April 2009, the Korean government cleared the path for foreign handset vendors by abolishing a mandate requiring all mobile handsets sold locally to use a home-grown software platform.

AmEx to Buy Revolution Money

American Express Company (AXP) said on Wednesday that it will acquire Internet payment platform Revolution Money for about $300 million.

The deal is expected to close in early 2010. Following the closure of the deal, Revolution Money would operate as a subsidiary of AmEx. The founder and chief executive of Revolution Money, Jason Hogg, will continue as president and chief executive.

St. Petersburg-based Revolution Money was founded by AOL co-founder Steve Case’s Revolution LLC in 2007. Revolution Money provides payments through an internet-based platform and issues prepaid cards that can be used for offline payments or to withdraw cash from ATMs in the U.S. Additionally, Revolution Money offers MoneyExchange, a service to remit money by people using social and instant messaging networks.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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Company Description

Crane Co. manufactures highly engineered industrial products. Founded in 1855, the company provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. Crane's five business segments are: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling and Controls. Crane has approximately 11,000 employees in North America, South America, Europe, Asia and Australia.

Solid Income

The company recently declared a quarterly dividend of 20 cents per share, noting that it is payable on December 10 to shareholders of record as of the close of business on November 30.

Crane's dividend yield of 2.7% tops the industry average of 1.6%

A Strong Quarter

The company also posted solid results for the third quarter, raising the lower end of its earnings outlook.

Third-quarter earnings per share of 60 cents surpassed the Zacks Consensus Estimate by 25% and matched the year-prior earnings. Sales of $551 million slipped 14% year-over-year.

Management noted that despite a 14% decline in sales from the third quarter of 2008, operating profit and earnings per share were flat compared to 2008, primarily reflecting the company's success in re-aligning its cost base, adding that operating margin improved by 160 basis points, to 10.1%, compared to 8.5% a year ago.

The company said its $305 million in cash, $300 million revolving bank credit agreement and no near-term debt maturities provide it with a solid financial foundation to continue to manage through the current environment, positioning Crane for growth as end markets recover.

Bullish Estimates and a Surging Share Price

The company upped the lower end of its full-year earnings guidance to a range of $1.90 - $2.05 from $1.75 - $2.05.

Analysts boosted the 2009 Zacks Consensus Estimate to $2.05 per share from last month's $1.90. For the following year, analysts polled by Zacks are projecting earnings of $2.21 per share, versus the previous month's $2.08.

Shares of Crane soared past the market by more than 100% over the past year. Zacks Investment Research

KCC’s approval to allow foreign handset vendors to enter the domestic market is aimed at increasing the options for brand-conscious cell phone users rather than just limiting their choice to indigenously manufactured devices. In April 2009, the Korean government cleared the path for foreign handset vendors by abolishing a mandate requiring all mobile handsets sold locally to use a home-grown software platform.      
 
While approval of iPhone in South Korea represents a boon for local mobile users, the presence of a leading foreign brand will intensify competition in the country’s highly penetrated mobile market. Local companies such as LG and Samsung are gearing up for the emerging competition as they are strengthening their handset range by adding more state-of-the-art devices.
 
Nevertheless, iPhone represents a significant opportunity for the incumbent wireless carriers in South Korea (such as KTC and SKM) to attract high-end customers, which would help them to boost wireless data ARPU (average revenue per user) and customer base.

Company Description

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name. The company currently operates 562 warehouses, including 409 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, 7 in Korea, 6 in Taiwan, 9 in Japan, 32 in Mexico and 1 in Australia. Costco also operates Costco Online at www.costco.com and at www.costco.ca in Canada. The company plans to open an additional five new warehouses (including the relocation of one warehouse to a larger and better-located facility), prior to the end of calendar 2009.

Recent Events

In recent news, it was reported that Costco will stop carrying Coke products due to a dispute over prices as the retail giant is trying to win over customers with low prices, while Coca-Cola Co. (KO) is working hard to maintain profits amid a recessionary environment.

Solid Sales

Costco recently posted October net sales of $5.68 billion, a 7% increase over last year's $5.30 billion. Comparable sales spiked 5% year-over-year.

Competitive Income

In early October, the company declared a quarterly dividend of 18 cents per share, which was paid out on November 6. The dividend translates into an industry-leading yield of 1.2%.

Bullish Forecasts

Analysts polled by Zacks are upbeat on earnings. For the fiscal year ending August 2010, the Zacks Consensus Estimate of $2.87 per share was increased from $2.71 over the past 60 days. For the following year, Zacks analysts are calling for $3.22 per share, up from the 2 months-ago level of $3.00.

Zacks Investment Research

Company Description

Bristow Group is one of the largest providers of helicopter services in the world. Its primary customers are in the offshore energy industry in the North Sea, Nigeria, the Gulf of Mexico, Australia, Brazil, Russia and Trinidad. The company provides transportation, maintenance and search and rescue services.

Bristow Surprised by 39.39%

On Nov 4, Bristow Group reported its fiscal second quarter and surprised on the Zacks Consensus Estimate by 26 cents per share. Earnings per share rose 19.5% to 92 cents from 77 cents in the year ago period. Analysts were expecting just 66 cents.

Revenue was virtually unchanged from the second quarter of 2008 at $291.6 million compared to $291.7 million in 2008.

While the operating environment is still challenging in the energy industry, the company saw good operating results in Latin America, Nigeria and Australia during the quarter.

In Australia, the company won new business from several customers and also implemented cost cutting measures which boosted results. Nigeria is also a challenge because of the political environment.

Results in the Gulf of Mexico also fell from the previous quarter but the company said it wasn't as impacted as some of its competitors due to an upgrade in its air fleet which allowed it to serve projects further offshore in deeper water.

Bristow is expecting a turnaround in the energy industry, and therefore its business, by next year.

Zacks Consensus Estimates Jump

Given the big beat in the fiscal second quarter, covering analysts have been scrambling to raise estimates.

The fiscal third quarter Zacks Consensus is up 2 cents in the last week to 70 cents per share. The fiscal 2010 consensus also rose to $2.94 from $2.84 per share in the last 7 days with 2 out of 8 analysts raising during that time.

Value Fundamentals

Bristow Group is a Zacks #1 Rank (strong buy) stock. It has a price-to-book of 0.93. The company has a solid 5-year average return on equity (ROE) of 11.86%.

Zacks Investment Research

Chicago, IL – November 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), Microsoft Corp (MSFT), Quality Systems Inc. (QSII), Allscripts-Misys Healthcare Solutions, Inc. (MDRX) and Cerner Corp. (CERN).

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Here are highlights from Friday’s Analyst Blog:

Apple Opens New Store in New York

Apple Inc. (AAPL) will open its newest retail store with an 8,500 square feet retail space in New York tomorrow. The store will help Apple deliver more Macs, iPods and iPhones, taking advantage of the coming holiday season. The new store is the fourth in Manhattan and fifteenth in New York.

To ensure a high-quality buying experience for its products, in which service and education are emphasized, the company has expanded and improved its distribution capabilities by opening its own retail stores in the U.S. and internationally.

The company operates a network of 280 retail stores in 10 countries across the world, including the U.S., U.K., Italy, Australia, Canada, Japan, China, Switzerland, Germany and France to drive the demand for its other products. Further, Apple is soon to open two new stores in Shanghai as well as London and Paris.

The company further plans to open 40 to 50 new larger retail stores next year, about half of which are expected to be outside the U.S. Apple had earlier estimated that it would open 25 to 50 new stores.

Retail sales increased 4.0% to $6.57 billion (averaging $26.0 million per store annually). Store traffic grew to around 170 million in fiscal 2009. The company has extended its footprint in international retail markets. Growing its presence in the international retail market, Apple opened its first store in Sydney and Beijing and opened stores in Switzerland, France and Germany during the calendar year 2008.

Apple's business strategy leverages its ability, through the design and development of its own operating system, hardware and many software applications and technologies, to provide its customers around the world with compelling new products and solutions, superior ease-of-use, seamless integration and innovative industrial design.

To attract customers during the holiday season, the company plans to offer gift-wrapping of any iPod or portable Mac for just $5. It will also allow customers to set aside a gift and pick it up at their local Apple store for free from Dec. 15 to Christmas Eve.

Apple’s stores hosted 42.7 million visitors during the last quarter, an increase of 7% from the year-ago period. The stores posted revenue of $1.87 billion ($7.6 million per store) in the quarter, the highest level ever and up 15% from the year-ago period.

Last month, Microsoft Corp (MSFT) announced the opening of its own first retail store in Arizona. But we do not expect Microsoft to catch up anytime.

Quality Systems Barely Beats

Quality Systems Inc. (QSII) reported fiscal second-quarter earnings of 41 cents, beating the Zacks Consensus Estimate by a penny and the year-ago earnings by 4 cents.

Total revenues for the quarter increased 21.5% to $71.69 million from $58.98 million. The company’s NextGen Healthcare Information Systems division posted revenue of $67.4 million for the reported quarter, representing a 23% increase from the previous year.

Category-wise, System sales, including software, hardware and supplies, increased 5.9% to $26.24 million from $24.78 million. Revenues from maintenance, electronic data interchange (EDI), revenue cycle management (RCM) and other services grew 32.9% to $45.46 million from $34.19 million in the year-ago period.

The total cost of system sales, including software, hardware and supplies increased 16.8% to $7 million. Total cost of maintenance, EDI, RCM and other services for the quarter were $21.27 million as against $15.2 million in the year-ago quarter, up 39.9%. Consequently, total cost of revenues for the quarter increased 33.4% to $28.3 million. The company reported a gross profit of $43.4 million for the quarter opposed to $37.8 million in the year-ago period, up 14.8%.

Research & development spend for the quarter increased 30% to $4.34 million for the quarter. Selling, general and administrative expenses for the reported quarter increased 11.7% to $20.4 million.

Quality Systems exited the quarter with cash and cash equivalents of $75.4 million opposed to cash and cash equivalents of $70.2 million at the end of fiscal 2009.

Quality Systems, headquartered in Irvine, California, develops and markets healthcare information systems that automate certain aspects of medical and dental practices, networks of practices such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. The company competes with players like Allscripts-Misys Healthcare Solutions, Inc. (MDRX) and Cerner Corp. (CERN).

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Upcoming Releases
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Founded in 1971 in Seattle, Starbucks is one of the largest coffee retailers in the world.

Starbucks Beat by 14.29% in the Fiscal Fourth Quarter

On Nov 5, Starbucks reported its fiscal fourth quarter 2009 results and beat the Zacks Consensus Estimate by 3 cents. Earnings per share were 24 cents compared to the Zacks Consensus of 21 cents. That is a 140% increase over the 10 cents a share reported in the year ago quarter.

Revenue, however, fell 4% to $2.42 billion from $2.52 billion in the fourth quarter of fiscal 2008. Both the U.S. and International segments each saw a 4% decline in net sales. Comparable U.S. store sales slid 1% in the quarter.

By the end of fiscal 2009, the company had completed the majority of its previously announced store closings which included about 800 U.S. stores, 61 stores in Australia and 40 stores in other international markets.

Outlook for Fiscal 2010

With the majority of its store closings behind it, Starbucks appears more optimistic about the coming year. It is projecting revenue growth for fiscal 2010 in the low-to-mid single digits primarily due to what the company hopes is positive comparable store sales, a 53rd fiscal week and about 300 planned net new stores.

Starbucks is still looking overseas for its growth as it plans to open about 200 net new stores in the international market. In the United States, it will be looking to add about 100 net new stores.

Zacks Consensus Estimates Rise

Given the company's fourth quarter earnings surprise, analysts have moved to adjust estimates higher. The first quarter 2010 Zacks Consensus Estimate has jumped 3 cents to 26 cents in the last 7 days, with 5 analysts raising and 1 analyst lowering out of 15 total analysts.

Similarly, fiscal 2010 estimates rose 5 cents to 97 cents in the last week. Analysts expect 2010 earnings growth of 21.79%. Looking ahead, analysts are also bullish about fiscal 2011, projecting 15.41% earnings growth.

SBUX at 2-Year High

Starbucks' stock has been on quite a run. The Zacks #1 Rank (strong buy) stock has recently been hitting 52-week and 2-year highs.

Zacks Investment Research

It is indeed an old adage that while goods things are to be preferred over bad things it is possible to get too much of the former. Looking at recent comments from the governor of the Reserve Bank of Australia it is not difficult to imagine how these, albeit old and worn, pearls of wisdom may well have inspired Mr. Stevens in his effort to tiptoe the thigthrope between signalling the intention to raise rates into an expected economic recovery on the one side and trying to prevent the Aussie shoot of on helium into the sun with wings of wax on the other.

(quote Bloomberg)

Australia’s central bank Governor Glenn Stevens signaled a surge in the nation’s currency to near parity with the U.S. dollar has given him scope to slow the pace of future interest-rate increases.

Stevens, who yesterday became the first central banker in the world to raise borrowing costs twice in 2009, said the 28 percent gain in the currency this year may hurt exports and cool inflation, allowing him to “gradually” raise borrowing costs. Just last month, he warned it may be “imprudent” to keep rates at “emergency levels.” The local currency and bond yields fell as traders slashed bets on another quarter-point boost next month, after Stevens raised the overnight cash rate target to 3.5 percent from 3.25 percent. Investors have been driving the Australian dollar toward parity with the greenback, betting China’s economic growth will boost exports from Australia, the biggest shipper of iron ore used in making steel.

Policy makers “are probably glad for the parity talk as it reduces the amount of work they need to do with monetary policy,” said Matthew Johnson, an interest-rate strategist at UBS AG in Sydney. “A December move is a 50-50 proposition.” Traders are betting there is a 50 percent chance Stevens will increase the key rate by another quarter point on Dec. 1, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange at 12:22 p.m. today. Prior to Stevens’s comments, they had a 96 percent bet on such a gain.

Mr. Stevens' comments follows in the heels of the recent push by part of the Aussie towards parity with the US dollar reflected primarily in the fact that the RBA has already raised twice in 2009 (from 3.00 to 3.5%) as well as a growing risk sentiment which is a fundamental prerequistie, in the current market, for observing investors react to (growing) yield differences. In so many words, this is all about carry trade and more specifically about the fact that in a world where the G3 and others are still fiddling with quasi- or outright QE it takes a brave sould to initiate a hiking process since it will mean an immediate reaction in the currency market. This is especially the case when the liquidity anchor effectively constitutes the US and thus; while the US pump priming keeps a floor under risky assets and volatility at low levels it becomes a veritable turkey shoot to gun for those currencies whose central banks are on the hike (see more here).

Following Mr. Stevens' comments, the Aussie did lose a bit of its steam even if many currency punters still see it racing towards parity over the course of the coming year.

For example David Forrester who is currency economist at Barclays Capital expects the Aussie to test the parity level in 2010, a call based on the idea that the RBA will have hiked rates to a full 5.5% by the end of next year. Needless to say, in a world where risky assets continue to fly and risk aversion is kept in check this will provide a juicy interest rate differential vis-a-vis the G3 and thus the carry trade flows (be they actual carry trades or simply spot market piggy backing) will be plentiful. 

The question is of course; can you blame the RBA for wanting to raise rates?

As it turns out, not really and particularly not in light of global central banks' new found focus on asset prices in setting the policy rate. You know, it was all Greenspan's fault and all that jazz. Still, for those worried about a too rapid V-shaped recovery, Australian house prices seem to offer plenty of things to worry about.

From Q3-08 to Q1-09 the house price index (weighted for the 8 biggest cities) fell a modest 5.6%, a drop which has been decisively paired in Q2/Q3-09 with the index rising a cumulative 8%. This picture is repeated if we look at a general gauge for consumer spending in the form of a sector break down of retail sales.

Consequently, the annual as well as monthly flow of retail trade turnover never really went decisively into negative in the context of the financial crisis which has no doubt contributed to the fact that the RBA never really contemplated a move into ZIRP and QE.

What happens next then?

Well as I noted recently, the burden of rebalancing may be tough to carry for those economies who have central banks brave enough to raise interest rates. Ironically of course and if it is really asset prices you are worried about, the risk is naturally that you just end up sucking in liquidity as you which in itself defeats the purpose of the hiking campaign (see Edward's recent piece on Norway for a Scandinavian perspective on this). Naturally, you can retort to Brazil like capital controls, but in a world where capital flows freely and where the global economies are largely interdependent, this is like trying to stop a freight train with a VW Polo. Also, allow me to finish with a small quibble of mine in relation to the sudden urge by part of central bankers to target asset prices. I mean, this is fine and all and for those who know a little bit about monetary policy this is not something completely new. The problem is merely that targeting asset prices may not only be counterproductive in a world where asymmetric liquidity conditions and carry flows are the norm, by targeting asset prices also entail targeting a price which is considerable more volatile than traditional prices (because I assume that forecasting long term asset prices is not as easy as many believe). In this way, a steady gaze at asset prices may also conflict with central banks' general propensity to favor incremental and gradual moves.

Whether this is the case in Australia, only time will tell. Yet, from the lovely fjords of Oslo, to the beaches of Rio, and on to the Great Barrier Reef policy makers may soon learn that you can indeed get too much of a good thing.

Chicago, IL – October 22, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Autoliv (ALV), Ford (F), Nissan (NSANY), Toyota (TM) and Peabody Energy Corp. (BTU).

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Here are highlights from Wednesday’s AnalystBlog:

Autoliv Returns to Profitability

Autoliv (ALV) has shown a profit of $33.7 million or 37 cents per share in the third quarter of the year, after reporting losses for the preceding three quarters. The Sweden-based supplier of automotive safety systems has also beaten the Zacks Consensus Estimate of 24 cents per share. Nevertheless, earnings declined from $34 million, or 44 cents per share, in the same quarter of 2008.

Autoliv believed higher light vehicle production from the "Cash for Clunkers" program and other stimulus packages boosted its earnings. Consolidated net sales declined 14% to $1.32 billion while organic sales (i.e., sales excluding currency effects and acquisitions/ divestitures) fell 12%.

Sales of airbag products decreased 12% to $858 million. Organic sales in the segment dipped 11% compared to an 18% decline in light vehicle production (LVP) in the Triad (i.e. North America, Europe and Japan) due to new business with Ford (F), Volkswagen, Chevrolet, Opel, Suzuki, Nissan (NSANY), Toyota (TM) and Great Wall.

Sales of seatbelt products dropped 17% to $468 million. Organic sales in the segment fell 13% compared to a 21% decline in global LVP. This primarily reflected Autoliv’s greater dependence on advanced higher-value-added seatbelts, particularly for the European and North American markets.

Peabody Beats Expectations

Peabody Energy Corp. (BTU) reported third-quarter earnings of 49 cents per share, beating the Zacks Consensus estimate of 22 cents. However, the quarterly results were down 70.4% from the year ago earnings of $1.35 per share.

Peabody’s revenues declined to $1.67 billion in the quarter from $1.89 billion a year ago. The company’s U.S. revenues per ton increased 11% over last year due to higher realized prices. Realized revenues for Australia averaged $82 per ton - $125 per ton for metallurgical coal and $72 per ton for thermal coal - up 33% from the second quarter of 2009.

The company’s total sales volumes were 63.5 million tons, down from 65.6 million tons a year ago. U.S. sales reflected planned Powder River Basin (PRB) reductions. But Australian sales of 6.5 million tons were 30% above the second quarter and Australian metallurgical coal exports were 2.7 million tons, nearly triple the pace of the first half of 2009.

Peabody now expects its 2009 EBITDA to be $1.2-$1.3 billion versus previous target of $1-$1.2 billion. The company is targeting earnings of $1.34 - $1.54 per share, including a tax remeasurement, or $1.60 - $1.80 per share excluding the tax effects.

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Peabody’s revenues declined to $1.67 billion in the quarter from $1.89 billion a year ago. The company’s U.S. revenues per ton increased 11% over last year due to higher realized prices. Realized revenues for Australia averaged $82 per ton - $125 per ton for metallurgical coal and $72 per ton for thermal coal - up 33% from the second quarter of 2009.

The company’s total sales volumes were 63.5 million tons, down from 65.6 million tons a year ago. U.S. sales reflected planned Powder River Basin (PRB) reductions. But Australian sales of 6.5 million tons were 30% above the second quarter and Australian metallurgical coal exports were 2.7
million tons, nearly triple the pace of the first half of 2009.

Peabody now expects its 2009 EBITDA to be $1.2-$1.3 billion versus previous target of $1-$1.2 billion. The company is targeting earnings of $1.34 - $1.54 per share, including a tax remeasurement, or $1.60 - $1.80 per share excluding the tax effects.

It expects total sales to be 235 - 245 million tons in 2009, with sales of approximately 190 million tons in the United States and 21 to 23 million tons in Australia. The company continues to exercise tight capital discipline and has lowered its 2009 capital expenditure range to $325 - $375 million.

The company intends to double its exports of Australian coal over the next five years to serve the fast-growing Asian markets. The company growth going forward is expected to be driven by continued strength in United States and Australia (Pacific markets), led by China's and India's demand for metallurgical coal for steelmaking.

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Australia's decision dented demand for the U.S. dollar, which, in turn, raised commodities prices.  US energy and materials stocks moved up, oil also rose, and gold reached a record high.  Stock investors cheered the drop in the dollar because it boosts corporate profits by making U.S. goods cheaper for overseas buyers. Companies can also get a bump in profits when they convert sales made in foreign currencies to dollar terms. The dollar has been falling for months so that added to expectations for positive corporate profit reports.

Five stocks rose for each that fell on the NYSE.  Producers of energy and raw materials had the two biggest advances in the S&P among 10 industries, rising about 2.1% and 1.9% respectively.

Financial sector shares (up 1.1%) received another boon, over and above Goldman's (NYSE:GS) upgrade of large-cap banks on Monday, as Bank of America/Merrill (NYSE:BAC) upgraded European banks to "overweight".  Gains in the financial sector included a 2.5% increase in JP Morgan (NYSE:JPM), 3.2% in Morgan Stanley (NYSE:MS) and 2% in Wells Fargo (NYSE:WFC).

Deal activity has also picked up steam, lifting confidence in financial markets.  Banco Santander (NYSE:STD) raised over $8 billion in an IPO of its Brazilian subsidiary.  ExxonMobil (NYSE:XOM) announced its has agreed to pay $4 billion for Kosmos Energy's 23.49% stake in the Jubilee oil field off the coast of Ghana.  Societe Generale said it intends to raise $7.1 billion in new shares to repay the French government, buy the 20% of Credit Nord it doesn't currently own, and improve its Tier 1 ratio.

Gold futures advanced as high as $1,045 an ounce in New York, topping the 18 month record of $1,033.90, on speculation that anticipated accelerating inflation will spur demand for the precious metal as a store of value.

The U.S. dollar index was off 0.31 at 76.33 in late trading, but up from its 76.22 session low after the Saudi Arabian central bank chief denied an Independent newspaper report that the Saudis and other Arab producers planned to price oil on a basket of currencies, instead of the dollar.

Observers believe that the decline of just over 4% on the S&P 500 prior to this week’s stellar stock movement seemed to give investors the entry point they were looking for to build positions on stocks.  "I think that most people believe that stocks are going to generally keep drifting higher for the next few months," said Gary Webb, CEO at Webb Financial Group. "So while nothing fundamental has changed this week, investors are taking opportunities to buy on the lows."

Nobel Prize winning economist Joseph Stiglitz added that US unemployment will keep rising and should be the focus for policy makers.  Gains in the stock market show that investors have been “irrationally exuberant" about a recovery.  

New York Fed President William Dudley said a tepid economic recovery should allow the Fed to keep interest rates at rock-bottom lows for a prolonged period.  Because the U.S. economy faces many headwinds, including an anemic labor market and a fragile banking system, Dudley said, inflation will not become a problem in the foreseeable future. "The recovery will turn out to be moderate by historical standards," Dudley said in a speech at Fordham Law School. He added that "the banking system has still not fully recovered."

Earnings are due today from Costco (NASDAQ:COST), Family Dollar (NYSE:FDO) and Alcoa (NYSE:AA).

Suntech Power based from Wuxi, China, is a leading solar energy company in the world. The company designs, develops, manufactures and markets PV cells and modules. It also provides PV system integration services in China. Suntech caters to a worldwide customer base spread around Spain, Germany, the United States, China, South Korea, Italy, the Middle East, Australia and Japan.

For its multi-crystalline silicon modules, Suntech uses its patent-pending Pluto PV cells utilizing solar grade silicon. The Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.

The company is well positioned to benefit from the Chinese solar subsidy program. China is aiming to increase its installed solar power capacity to 2GW by 2011 from 140MW at the end of fiscal 2008. We maintain our Neutral recommendation on the shares.

Based in Colorado, Newmont is trying to boost reserves to benefit from historically high gold prices. In June, the company concluded its purchase of the remainder of the Boddington gold project, the largest in Australia, from AngloGold Ashanti Ltd. (AU). The $2.9 billion mine will have an annual capacity of about 1 million ounces at a projected cost of $300 an ounce.

Newmont’s gold sales fell 5.7% to 1.2 million ounces in the second quarter. After which the company lowered the higher end of its 2009 gold sales forecast range to 5.4 million ounces from 5.5 million ounces. The company sold 5.2 million ounces of gold in 2008.

Newmont also boosted the reserve estimate of its Minas Conga copper-gold project in Peru to 11.8 million ounces of gold and 3.2 billion pounds of copper from the previous forecast of more than 6 million ounces of gold and roughly 1.7 billion pounds of copper.

Minas Conga is a deposit with reserves of nearly 12 million ounces of gold and 3.2 billion pounds of copper. The project has an annual production potential of 480,000 to 780,000 ounces of gold and an expected mine life of 15 to 20 years. Copper production capacity is between 175 million and 225 million pounds and around 90,000 tons of fine copper per year.

Currently, the company is evaluating its decision to develop the Minas Conga mine, which was delayed by the high projected cost of development on the back of global economic and credit crunch last year.

Newmont controls the Yanacocha gold pit with a 51.35% stake while Buenaventura (BVN), the Peruvian precious metals miner holds 43.65%. The International Finance Corporation holds the remaining 5% stake in the mine.

Buenaventura, Newmont’s partner in the Yanacocha mine, is expecting to produce 17.5 million ounces of silver this year, down from an earlier forecast of 19.5 million ounces. The company held its 2009 gold outlook stable at nearly 1.3 million ounces, including its share of production from Yanacocha, one of the largest gold mines in South America. Buenaventura churned out 1.2 million ounces of gold, including Yanacocha and 17.5 million ounces of silver last year.