Chicago, IL – November 24, 2009 – Zacks Equity Research highlights Petrobras (PBR) as the Bull of the Day and St. Jude Medical (STJ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Motorola Inc.(MOT), Sprint Nextel Corp.(S) and Alcatel-Lucent (ALU).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

Petrobras (PBR), the largest integrated energy firm in Brazil, stands to benefit from its country's economic growth and huge pre-salt oil reserves. The company recently reported a better-than-expected third-quarter, helped by strong downstream results that more than offset the sharp decline in commodity prices.

Near- to medium-term concerns include the uncertain commodity-price scenario, significant capital investment requirements, and Brazil's proposed new oil and gas regulatory framework. However, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook looks compelling.

As such, we recommend an Outperform rating for Petrobras ADRs. Our six-month target price is $55 per share.

Bear of the Day:

We look for global demographic trends -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth of St. Jude Medical (STJ). These trends give rise to growing demand for cardiovascular health care.

However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.

Earnings per share in the third quarter reached $0.59, beating the Zacks Consensus Estimate by one cent. However, we have chosen to downgrade the stock to an Underperform with a target price of $31.

Latest Posts on the Zacks Analyst Blog:

Motorola Boosts iDEN Business

Motorola Inc.(MOT) has decided to purchase iDEN base station assets of the privately held RadioFrame Networks Inc. The iDEN (Integrated Digital Enhanced Network) technology allows cell phone calls to move on the same network as communication from two-way radios. In general, this technology resembles walkie-talkie features on cell phones. Financial terms of this deal have not been disclosed so far. Motorola itself is the pioneer of the iDEN technology that RadioFrame had licensed for its base station products.

The main reason for this acquisition is the superior iDEN-based base station products of RadioFrame that are lower cost and more power efficient. This proposed acquisition will enhance Motorola's portfolio of multi-channel base stations products that are optimized to support non-contiguous spectrum allocations in the special mobile radio business. Motorola may use RadioFrame’s lower-cost iDEN architecture into entirely separated spectrum bands that are allocated to the wireless carriers in the international (outside the U.S.) markets. RadioFrame has a solid client base for its base station products, notable among them being Sprint Nextel Corp.(S).

RadioFrame’s base station products will be a part of Motorola’s Home and Network Mobility segment. This segment makes equipment for cable and wireless operators. Recently, industry rumors indicated that the company has decided to sell this segment for more than $4.5 billion. As of now, Home and Network Mobility is the largest segment of Motorola. In the third quarter of 2009, this segment generated more than $2 billion revenue and $199 million operating profit.

Earlier this month, Motorola’s Home and Network Mobility segment decided to purchase IPTV specialist BitBand and will do venture funding to the LTE chip making business of Sequans Communications together with Alcatel-Lucent (ALU). BitBand has more than 60 commercial IPTV deployments throughout the world and Paris based Sequans Communications has intended to demonstrate its first LTE chipset in early 2010. Whether Motorola sells its Home and Network Mobility segment or not, it seems that the company is increasingly focusing on optimizing the resources of its largest business segment.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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 analyst 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 by visiting http://at.zacks.com/?id=5508.

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=5509.

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

• Electronic Arts (NASDAQ:ERTS) said it plans to cut 1500 additional jobs. The firm reported second quarter adjusted earnings of 6 cents, a one penny miss, on revenues of $1.15 billion, which slightly topped Street projections of $1.12 billion. The firm forecast 2010 earnings of $0.70-$1.00, topping estimates of 89 cents on revenues of $4.2-$4.4 billion versus estimates of $4.26 billion

• Cadbury (NYSE:CBY) rejected the latest Kraft (NYSE:KFT) bid calling it "derisory"

• Moody's (NYSE:MCO) commented that AIG (NYSE:AIG) will be able to repay its Federal loans

• Wells Fargo (NYSE:WFC) lifted its growth expectations for the semiconductor group following release of third quarter numbers. Intel (NASDAQ:INTC) remained its first pick within the group, with "outperform" ratings also on Micron Tech (NYSE:MU) and Xilinx (NASDAQ:XLNX). Analysts increased 2010 growth expectations of 25% for the industry from 10-20% prior

• Goldman Sachs (NYSE:GS) added Polo Ralph Lauren (NYSE:RL) to its Conviction Buy List, with a price target of $94

• Goldman Sachs (NYSE:GS) also added Kroger (NYSE:KR) to its Conviction Buy List, with a price target of $27

• Goldman Sachs (NYSE:GS) removed Coca-Cola Enterprises (NYSE:CCE) from its Conviction Buy List, but maintained a "buy" rating on the shares

• Tyco International (NYSE:TYC) released better-than-expected third quarter earnings of 61 cents a share, 7 cents above estimates, on revenues of $4.42 billion, slightly higher than estimates of $4.32 billion

• Burlington Northern (NYSE:BNI) CEO advised Berkshire Hathaway (NYSE:BRK.A) is liquidating shares of rival railroads Norfolk Southern Corp. (NYSE:NSC) and Union Pacific (NYSE:UNP) as it readies its purchase of Burlington

• Google (NASDAQ:GOOG) moved further into the market for digital advertising on cell phones with the acquisition of AdMob for $750 million

Chicago, IL – October 15, 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: Linear Technology (LLTC), Maxim Integrated Products (MXIM), Intersil Corporation (ISIL), Semtech (SMTC) and Altera Corporation (ALTR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Linear Tops, Guidance Conservative

Linear Technology’s (LLTC) first quarter earnings beat the Zacks consensus by 2 cents. Revenue beat the consensus by 9.4%. We currently expect the entire peer group, including Maxim Integrated Products (MXIM), Intersil Corporation (ISIL) and Semtech (SMTC) to report above consensus expectations.

Revenue of $236.1 million was up 13.5% sequentially and down 23.9% year over year. The sequential strength was broad-based, with all end markets except cell phones contributing. Automotive and industrial were particularly strong. The weakness compared to the year-ago period was recession-related.

On a sequential basis, the U.S. generated 29% of revenue (up 9.7%), Europe 16% (up 13.5%), Asia excluding Japan 40% (up 10.7%) and Japan 15% (up 31%). Both distribution and OEMs sales grew in the U.S. and internationally. Distributor inventories decreased in the quarter. The ASP increased from $1.44 to 1.49. Volumes were up 9.7% sequentially, also contributing to the higher revenue.

Altera Meets Expectations

Altera Corporation (ALTR) reported sales of $286.6 million, down 20% from a year ago but up 3% sequentially and in line with the management’s revised guidance provided last month. New products grew 7% sequentially. Sales of 40 nm devices tripled sequentially as the company won record results.

Last month Altera upgraded its guidance, driven by broad-based improvement across all market segments except telecom and wireless. Management stated that business conditions improved steadily during the quarter and most markets performed better than expected due to a combination of new program ramps, improved end-market demand and an increase in customer orders due to inventory depletion.

Gross margin came in at 67.3% compared to 67.1% in the year-ago quarter, but improved from 66.4% in the previous quarter driven by a favorable product mix along with improved yields on some of the new products. Operating margin came in at 23.2% compared to 24.0% in the previous quarter and 30.8% in the year-ago quarter.

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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.

Contact:
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312-265-9380
Visit: www.zacks.com

Intended for immediate incorporation in e-book readers, GPS navigators and other popular portable consumer electronics, the CE module can be integrated into media players and durable goods as embedded mobile broadband gradually enters everyday life.

The new Ericsson CE module, C3607w, gives device manufacturers the flexible, self-contained connectivity solution needed to create next generation intuitive and innovative consumer electronics by decoupling processor and connectivity design. A third in size compared with earlier Ericsson modules, the C3607w comes with an extensive operator approval program and outstanding IPR protection which eases integration and reduces time to market.

The C3607w is Ericsson's smallest, lightest and fastest mobile broadband module to date, capable of getting uplink speeds of 5.76 Mbps with up to 40% less power consumption than previous modules. Equipped with Ericsson's wake-on-wireless feature that facilitates remote wake-up commands from sleep mode, the CE module will also feature a new set of security and messaging applications.

Ericsson's C3607w consumer electronics module is expected to be available in the first quarter of 2010.

Headquartered in Stockholm, Sweden, LM Ericsson Telephone Co. is a multinational company engaged in manufacturing and selling wireless infrastructure equipment for the telecom sector. It is a total network solutions provider, serving wireless and wireline operators, enterprises and consumers.

The company is primarily a supplier of global system for mobile communications (GSM)-based equipment and looks to benefit from next generation systems as more broadband content is being streamed to mobile devices, prompting network providers to upgrade their networks. GSM is the dominant wireless standard in Europe and most of the world. 

Sony Ericsson, the company’s 50/50 mobile handset joint venture with Sony, is one of the top-five largest manufacturers of cell phones in the world. Alcatel-Lucent (ALU) is the company’s chief rival. We currently have a Neutral recommendation on Ericsson.

T Store will provide an open platform where content developers can sell their applications to users of mobile handsets based on the Wireless Internet Platform for Interoperability (WIPI), which allows cell phones to run applications regardless of manufacturer or carrier. Customers can download from a large assortment of multimedia content (approximately 6,500 applications), including games, phone decoration, music, broadcasting/movie and language/education that are categorized under eight main menus.

Registered content developers can sell their applications against a yearly registration fee, which is expected to be waived by the company by end of 2009 to boost developers' participation. The current revenue split is 70%/30% for the developers and SK Telecom, respectively. Since mobile users can download contents over the Internet, they do not have to pay expensive packet fees as in the case of downloading applications over the air.

Although T Store resembles Apple's (AAPL) App Store, it differs from certain aspects such as operating system compatibility and handset accessibility. Unlike App Store, T Store supports four mobile operating systems: Windows Mobile, Symbian, Android and Linux. Moreover, customers can access the store regardless of the type of handset they use or their service providers.

SK Telecom is the leader in the Korean wireless market, enjoying approximately 51% market share. However, competition has increased in the Korean mobile market due to the consolidation of KT Corp. (KTC) and its wireless unit KT Freetel in June 2009. As such, SK Telecom faces greater challenges in retaining wireless market share. Given the high level of wireless penetration in the Korean market, the company is pursuing various business opportunities that will enable delivery of new value-added services to its customers.

SK Telecom remains a dominant player in the Korean smartphone market with a rich portfolio of handset offerings, including the new BlackBerry Bold smartphone. Increased adoption of smartphones and associated data services continue to boost ARPU (average revenue per user).

To further strengthen ARPU, the company plans to introduce 40-45 new handset models during 2009 (including the potential launches of iPhone and Google's G1 android phone) and introduce diverse mobile applications. Launch of T Store represents an integral part of this effort, which is expected to yield revenues of KRW 1 trillion (US$778 million) by 2013.

Lithium ion batteries are in the evolution stage and the fastest growing secondary battery type in the market today. The lithium ion polymer (cobalt, manganese or phosphate) offers high energy density at low weights, which is the primary reason for its growing adoption in notebooks, cell phones and cameras. As the target market continues to expand, the batteries are now being used in automotive, industrial and power line applications as well.

One of the most attractive features of the MAX11080 is that up to 31 devices can be daisy-chained together to monitor up to 372 battery cells, reducing power consumption by 10X and battery management costs by up to 80% in hybrid cars. It also uses 75% less board space than other discrete designs.

The product also offers redundant cell monitoring to detect thermal leakage, thus preventing batteries from exploding. Battery explosion is always an area of concern and many big computing and consumer electronics firms like Dell (DELL), Apple (AAPL) and Sony (SNE) have faced such issues in the past. Enhanced safety makes the product particularly suitable for automotive and industrial applications, where hazardous operations sometimes increase the significance of thermal discharge.

Maxim has a broad range of products that enables it to serve customers across many end markets. This product is an addition to the core analog range and is targeted at small and mid-size industrial and communications customers. This is a key strategic area for the company as it affords scope for differentiation and thereby, stronger prices and higher profits.

It now appears that I have to do nothing, I just open a Yahoo finance/mail/or any other Yahoo page and there it is. But would I still continue using Google (GOOG)? I think not, especially if Google is not my home page and the content is more or less the same. This basically means that the focus has now shifted from use to content.

Microsoft has also introduced a freely downloadable version of MS Office, facilitating the use of the company’s word processing, spread sheet and PowerPoint products. Although Google already offers similar products, it was more of a defensive measure to protect the company’s market share.

The company recently signed an agreement with Nokia (NOK) to offer Word, Excel and PowerPoint features on select mobile phones from 2010. The revenue potential could be substantial, considering Nokia’s market share. While the deal should generate incremental earnings, many observers feel that it would mark the end of the Windows-based mobile operating system.

But Microsoft came up with yet another strategy to prove its adaptability to changing market dynamics. The company’s newly announced OneApp feature will use clouds to offer programs on GPRS phones in emerging markets. While smartphone penetration in these markets has been limited, feature phones have huge potential.

Microsoft has already entered into an agreement with South Africa’s Blue Label Telecoms, offering a dozen OneApp-powered applications. The initial package includes popular programs like Facebook, Twitter, Windows messenger and games. It would soon add other useful programs to enable bill payments and even health diagnosis.

The existing mobile operating systems from Research In Motion (RIMM), Apple (AAPL), Google and Nokia have made headway in the U.S. and other developed markets. Microsoft’s intention to target emerging markets makes sense to us.

As Google’s Android-based phones are just making their appearance felt, the new Microsoft solution could divert some buyers. The deal with Nokia, which is firmly entrenched in these regions, would play a key role in bringing Microsoft applications a superior foothold. We believe that offering the smartphone experience to existing cell phones is a smart strategy, as users are allowed to continue using handsets of their choice.

This is not all. Management also expects to launch a windows mobile apps store for cell phone users by the end of this year. Apple’s app store is very popular, although the most frequently downloaded applications are the ones that cost 99 cents. Microsoft’s ploy is to allow developers to fix their own prices, encouraging them to continue writing programs for Win Mo. We are encouraged by the company’s recent initiatives as we believe these are likely to improve its competitive position in both the search and mobile markets.

Chicago, IL – July 28, 2009 – Zacks.com announces the latest Industry Outlook. Today’s outlook from Zacks Equity Research analyst Ian Gilson discusses the Consumer Electronics sector. Highlighted stocks include: Best Buy (BBY), LG (LPL) and Corning Glass (GLW).

The TV market is picking up. Volume has grown significantly and unit sales at retail look good. However, much of the retail demand is driven by deep discounted sales of smaller screen sizes, with 32" being pushed. Best Buy (BBY) had good results in TV, notebook PCs and cell phones in the first quarter and we believe this has continued in the second quarter.

LG (LPL), the second largest FPD maker after Samsung, has announced a capacity increase of an 8G plant (the latest technology plant is 11Generation) that will supply the smaller size panels. Corning Glass (GLW) has restarted a FPD glass line and the company continues to announce better than expected demand and increased growth forecasts.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5510.

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=5511.

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

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

PC demand is picking up in the consumer notebook area, which includes the new netbook category. The Macbook is particularly strong. Business demand for PC remains weak as business customer are waiting for the release of OS7 from microsoft.FPD for notebook PCs was up 35% Q/Q and netbook displays increased 85%. We expect PC sales to show positive Y/Y gains in the second half of 2009. Even the DRAM market is picking up, probably as a result of improving notebook sales.

The cell phone market is still in a state of technology transfer from traditional to smart phones. Apple (AAPL) sold a million new iPhones in the first weekend, dwarfing Palm's (PALM) Pre sales. For the first three months the estimates of Pre sales vary over a wide range, from 150,000 to 300,000, with most recent reports estimating a balance between supply and demand for the Pre of about 40,000 a week.

Supply has been constrained due to supplier problems and Palm may introduce an updated Pre handset before year end. More phone manufacturers are announcing new smart phones, such as Nokia (NOK) for Sprint (S), and it is possible that the netbooks that the phone companies will be selling may take some market share from smartphones.

Prepaid phone rates are dropping as secondary cellular providers offer deals on networks rented from the major providers. Prepaid is one of the faster growing sectors in the cellular business.

The TV market is picking up. Volume has grown significantly and unit sales at retail look good. However, much of the retail demand is driven by deep discounted sales of smaller screen sizes, with 32" being pushed. Best Buy (BBY) had good results in TV, notebook PCs and cell phones in the first quarter and we believe this has continued in the second quarter.

LG (LPL), the second largest FPD maker after Samsung, has announced a capacity increase of an 8G plant (the latest technology plant is 11Generation) that will supply the smaller size panels. Corning Glass (GLW) has restarted a FPD glass line and the company continues to announce better than expected demand and increased growth forecasts.

Digital camera demand remains stagnant as higher priced SLR camera demand, which had been growing, seems to have flattened out and there are some good sales for those looking for something better than a pocket camera.

Overall we expect a reasonable Xmas season. Inventories are at a low level and there may be a few shortages. The pessimism of the beginning of the year is not as prevalent and CE consumer confidence looks to be improving.Zacks Investment Research

PC demand is picking up in the consumer notebook area, which includes the new netbook category. The Macbook is particularly strong. Business demand for PC remains weak as business customer are waiting for the release of OS7 from microsoft.FPD for notebook PCs was up 35% Q/Q and netbook displays increased 85%. We expect PC sales to show positive Y/Y gains in the second half of 2009. Even the DRAM market is picking up, probably as a result of improving notebook sales.

The cell phone market is still in a state of technology transfer from traditional to smart phones. Apple (AAPL) sold a million new iPhones in the first weekend, dwarfing Palm's (PALM) Pre sales. For the first three months the estimates of Pre sales vary over a wide range, from 150,000 to 300,000, with most recent reports estimating a balance between supply and demand for the Pre of about 40,000 a week.

Supply has been constrained due to supplier problems and Palm may introduce an updated Pre handset before year end. More phone manufacturers are announcing new smart phones, such as Nokia (NOK) for Sprint (S), and it is possible that the netbooks that the phone companies will be selling may take some market share from smartphones.

Prepaid phone rates are dropping as secondary cellular providers offer deals on networks rented from the major providers. Prepaid is one of the faster growing sectors in the cellular business.

The TV market is picking up. Volume has grown significantly and unit sales at retail look good. However, much of the retail demand is driven by deep discounted sales of smaller screen sizes, with 32" being pushed. Best Buy (BBY) had good results in TV, notebook PCs and cell phones in the first quarter and we believe this has continued in the second quarter.

LG (LPL), the second largest FPD maker after Samsung, has announced a capacity increase of an 8G plant (the latest technology plant is 11Generation) that will supply the smaller size panels. Corning Glass (GLW) has restarted a FPD glass line and the company continues to announce better than expected demand and increased growth forecasts.

Digital camera demand remains stagnant as higher priced SLR camera demand, which had been growing, seems to have flattened out and there are some good sales for those looking for something better than a pocket camera.

Overall we expect a reasonable Xmas season. Inventories are at a low level and there may be a few shortages. The pessimism of the beginning of the year is not as prevalent and CE consumer confidence looks to be improving.Zacks Investment Research

Chicago, IL – July 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: Intel Corp (INTC), ARM Holdings (ARMH), Advanced Micro Devices (AMD), Qualcomm (QCOM) and Texas Instruments (TXN).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

How Mobile is Intel?

Just as Intel Corp (INTC) has a dominant position in the microprocessor market for computers, ARM Holdings (ARMH) has the most widely used technology in cell phones and other mobile devices. Intel’s desire to go beyond its home ground may be traced to the maturing state of the enterprise type PC market and the much stronger growth rates in cell phones and mobile internet devices.

The higher demand has been driven by a sea change in technologies driving consumer electronics products that have virtually created demand for a completely new species. Consumers now want greater functionality, connectivity, portability, lower power consumption, smaller sizes and all this at a much lower cost.

What Intel wants to achieve requires a paradigm shift. In the PC market it enjoys a special position at system integrators that have for long kept Advanced Micro Devices (AMD) at bay. Being the financially stronger party, it is able to make higher investment in R&D and also see the investment converted to sales.

However, the market is heating up and AMD’s recent alliance should help it generate much needed volumes. What that could mean for the AMD bottom line is a different story. But it should definitely begin to create a larger dent in Intel’s revenues.

The cell phone market is vastly different. Here Intel is in AMD’s shoes, despite its financial strength and ARM processors rule the day. ARM chips are already packaged and sold by the likes of Qualcomm (QCOM), Samsung and Texas Instruments (TXN) and are the processors of choice for nearly 90% of all cell phones on the market today.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

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.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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 

The higher demand has been driven by a sea change in technologies driving consumer electronics products that have virtually created demand for a completely new species. Consumers now want greater functionality, connectivity, portability, lower power consumption, smaller sizes and all this at a much lower cost.
 
What Intel wants to achieve requires a paradigm shift. In the PC market it enjoys a special position at system integrators that have for long kept Advanced Micro Devices (AMD) at bay. Being the financially stronger party, it is able to make higher investment in R&D and also see the investment converted to sales.

However, the market is heating up and AMD’s recent alliance should help it generate much needed volumes. What that could mean for the AMD bottom line is a different story. But it should definitely begin to create a larger dent in Intel’s revenues.
 
The cell phone market is vastly different. Here Intel is in AMD’s shoes, despite its financial strength and ARM processors rule the day. ARM chips are already packaged and sold by the likes of Qualcomm (QCOM), Samsung and Texas Instruments (TXN) and are the processors of choice for nearly 90% of all cell phones on the market today. Even new operating systems, such as Google’s (GOOG) Android have been specially built to fit in with ARM architecture.

Intel’s problems are not limited to its x86 architecture, which is incompatible with many proprietary cell phones. The company has actually yet to come out with a satisfactory product for the market. The Atom is more of a computing chip, sort of a bridge between the two worlds.

By Intel’s own admission, the company will not be able to make an impression on the cell phone market before the advent of Moorestown. The power savings offered by Moorestown could make the Intel chip more appropriate for the cell phone market. Critics argue that the Cortex A9 from ARM could be shipping by then, which could maintain ARM’s supremacy.
 
However, Intel’s strategy goes deeper. The company has gone beyond handsets to the growing mobile internet devices (MID) market. According to research firm Forward Concepts, MID shipments will grow from 305,000 units in 2008 to 40 million units in 2012. The research firm expects chip companies serving the market to gain big time, growing from $29 million in 2008 to $2.6 billion in 2012.

Intel is expected to be the biggest winner with its x86 microarchitecture. The non-x86 gainers are likely to be Texas Instruments and Qualcomm.
 
Intel has also been developing the Moblin software platform for Atom based netbooks and nettops using open source technology from Linux. The beta version boasts the latest open source graphics technology; social networking (only Twitter and Last.fm at present); Mozilla browser (for Internet access, video embedding and the latest flash plug-in); zoomable media player, and a user interface for connection management.

Moblin will also be of great strategic importance when Intel is ready to enter the handset market through the recently announced Nokia (NOK) alliance.

Chicago, IL – July 17, 2009 – Zacks Equity Research highlights Biogen Idec (BIIB) as the Bull of the Day and Dell (DELL ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Peabody Energy (BTU), Arch Coal (ACI) and CONSOL Energy (CNX).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Biogen Idec (BIIB) posted solid results in the second quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters.

Tysabri prescriptions are showing improvement and we believe will resume their previous pace shortly. In the meantime, the name is significantly under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60's. At today's price, the name is too attractive to ignore.

Bear of the Day:

Dell (DELL ) reported weak 1Q10 results with revenue and EPS below our estimates, with significant declines from the year ago quarter. Dell expects a modest decline in gross margin for 2Q, impacted by higher component costs, a competitive pricing environment, an unfavorable product mix and weak demand.

Although the company expects 2Q revenue to increase sequentially, margins are expected to slide as consumers shift from expensive notebook computers towards cheap netbooks and laptops. Also, reduced IT spending as shown by the decrease in sales of PCs and cell phones over recent months is likely to have a major impact on Dell's server business.

We believe Dell will continue to struggle, posting inconsistent results in future quarters. We maintain our SELL rating with a six month target price of $8.00.

Latest Posts on the Zacks Analyst Blog:

Coal Stocks Rally Pre-Earnings

Shares of Peabody Energy (BTU), Arch Coal (ACI) and CONSOL Energy (CNX) rallied more than 6% in Wednesday’s trading. These companies will start reporting their second quarter results as of next week. Peabody will report on 21st, followed by Arch on 24th and CONSOL on 30th.

Coal demand in the U.S. is expected to remain subdued this year due to low power consumption and weak industrial activity. However, demand is growing in Asia -- especially in India and China. As per China customs, China has imported 32.2 million ton of coal through May this year -- up 72.6% year-over-year. Coal exports from China declined 43.1% to 10.5 million ton during the same period.

On the other hand, thermal power plants in India are operating at low stock levels. The Coal Ministry of India expects a deficit of 70 million tons during the current fiscal ending March 2010.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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 analyst 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 by visiting http://at.zacks.com/?id=5508.

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=5509.

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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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On June 5th, the Semiconductor Industry Association (SIA) released its annual mid-year forecast projecting worldwide sales of $195.6 billion for 2009, a decline of 21.3% from sales of $248.6 billion in 2008. SIA projects that sales will begin to rebound in 2010, with year-on-year growth of 6.5 percent to $208.3 billion, followed by 6.5 percent growth in 2011 to $221.9 billion.

On June 1st, the SIA announced worldwide sales of semiconductors rose to $15.6 billion in April, an increase of 6.4% from March when sales were $14.7 billion, the Semiconductor Industry Association (SIA) reported today. April sales were 25% lower than April 2008 when sales were $20.9 billion.

SIA president George Scalise had some interesting comments:

"The better-than-expected 6.4% sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment...[T]he PC market -- a major consumer of semiconductors -- has been stronger than predicted earlier in the year.

"Consensus forecasts currently project that PC unit sales in 2009 will decline by about 6% compared to earlier forecasts of a decline in the range of 12%. Projections for cell-phone unit sales also improved, which are now projected to decline by around 7% compared to earlier forecasts of 15%. PCs and cell phones account for nearly 60 percent of all semiconductor consumption."

Looking at industry bellwethers Intel (INTC) and Texas Instruments' (TXN) past quarterly results, it appears as though excess inventory has been worked off, and future quarters will likely look more like end-market demand.

Changing Consumer Behavior

The savings rate is up, and the days of excessive debt may be gone for the average consumer, but the majority of the end-market products (smart-phones, net books) that contain these chips are under $1,000.00.

Higher Chip Content in Energy Conservation

Take a sector that looks dismal at first glance, such as Automotive. Looking closer, the chip content in electric or hybrid cars is very high due to power switching and power management. Efficiency was not important in those big 8 cylinder cars of the past, but today it is essential. Our favorite name here is International Rectifier (IRF).

Semi Equipment Book-to-Bill Continues Trend of Improvement

Recently, SEMI* announced preliminary numbers for April of 2009: North America-based manufacturers of semiconductor equipment posted $253 million in orders in April 2009 (three-month average basis) and a book-to-bill ratio of 0.65 according to the April 2009 Book-to-Bill Report. A book-to-bill of 0.65 means that $65 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in April 2009 was $253 million. The bookings figure is three percent greater than the final March 2009 level of $245.6 million, and about 77 percent less than the $1.09 billion in orders posted in April 2008.

The three-month average of worldwide billings in April 2009 was $389.9 million. The billings figure is 11 percent less than the final March 2009 level of $438.3 million, and about 71 percent less than the April 2008 billings level of $1.34 billion.

Historically Off a Bottom?

Looking at the monthly data from April of 2009 all the way back to December of 1996, January was the second lowest book-to-bill ever recorded. The lowest was May of 2001. It took 11 months for the book-to-bill to rise above one that year. The highest was 1.46 in March of 2000. The last three months have shown an uptrend (January 0.47, February 0.49 March 0.56, April 0.65).

So Who Do These Numbers Hurt or Help?

The numbers just confirm what we already know: manufacturers are on the sidelines and are delaying equipment purchases. Firms either generate excess profits making equipment that is technologically superior or they make excess profits when capacity at the fabs is high. Recently capacity at some fabs is less than 50%. Firm such as ASML (ASML) and Varian Semi (VSEA) will fare better than firms such as Electroglas (EGLS).Zacks Investment Research

On June 5th, the Semiconductor Industry Association (SIA) released its annual mid-year forecast projecting worldwide sales of $195.6 billion for 2009, a decline of 21.3% from sales of $248.6 billion in 2008. SIA projects that sales will begin to rebound in 2010, with year-on-year growth of 6.5 percent to $208.3 billion, followed by 6.5 percent growth in 2011 to $221.9 billion.

On June 1st, the SIA announced worldwide sales of semiconductors rose to $15.6 billion in April, an increase of 6.4% from March when sales were $14.7 billion, the Semiconductor Industry Association (SIA) reported today. April sales were 25% lower than April 2008 when sales were $20.9 billion.

SIA president George Scalise had some interesting comments:

"The better-than-expected 6.4% sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment...[T]he PC market -- a major consumer of semiconductors -- has been stronger than predicted earlier in the year.

"Consensus forecasts currently project that PC unit sales in 2009 will decline by about 6% compared to earlier forecasts of a decline in the range of 12%. Projections for cell-phone unit sales also improved, which are now projected to decline by around 7% compared to earlier forecasts of 15%. PCs and cell phones account for nearly 60 percent of all semiconductor consumption."

Looking at industry bellwethers Intel (INTC) and Texas Instruments' (TXN) past quarterly results, it appears as though excess inventory has been worked off, and future quarters will likely look more like end-market demand.

Changing Consumer Behavior

The savings rate is up, and the days of excessive debt may be gone for the average consumer, but the majority of the end-market products (smart-phones, net books) that contain these chips are under $1,000.00.

Higher Chip Content in Energy Conservation

Take a sector that looks dismal at first glance, such as Automotive. Looking closer, the chip content in electric or hybrid cars is very high due to power switching and power management. Efficiency was not important in those big 8 cylinder cars of the past, but today it is essential. Our favorite name here is International Rectifier (IRF).

Semi Equipment Book-to-Bill Continues Trend of Improvement

Recently, SEMI* announced preliminary numbers for April of 2009: North America-based manufacturers of semiconductor equipment posted $253 million in orders in April 2009 (three-month average basis) and a book-to-bill ratio of 0.65 according to the April 2009 Book-to-Bill Report. A book-to-bill of 0.65 means that $65 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in April 2009 was $253 million. The bookings figure is three percent greater than the final March 2009 level of $245.6 million, and about 77 percent less than the $1.09 billion in orders posted in April 2008.

The three-month average of worldwide billings in April 2009 was $389.9 million. The billings figure is 11 percent less than the final March 2009 level of $438.3 million, and about 71 percent less than the April 2008 billings level of $1.34 billion.

Historically Off a Bottom?

Looking at the monthly data from April of 2009 all the way back to December of 1996, January was the second lowest book-to-bill ever recorded. The lowest was May of 2001. It took 11 months for the book-to-bill to rise above one that year. The highest was 1.46 in March of 2000. The last three months have shown an uptrend (January 0.47, February 0.49 March 0.56, April 0.65).

So Who Do These Numbers Hurt or Help?

The numbers just confirm what we already know: manufacturers are on the sidelines and are delaying equipment purchases. Firms either generate excess profits making equipment that is technologically superior or they make excess profits when capacity at the fabs is high. Recently capacity at some fabs is less than 50%. Firm such as ASML (ASML) and Varian Semi (VSEA) will fare better than firms such as Electroglas (EGLS).Zacks Investment Research

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

We upgrade our recommendation to a Buy for Hurray! Holding Co. Ltd. (HRAY), a leading provider of wireless value-added services (WVAS) and digital download content in China, following large-scale 3G (TD-SCDMA) wireless network deployments and the company's transformation to an entertainment content developer.

Hurray! also has a respectable net cash position on its balance sheet and operating margins appear to be improving due to cost reduction measures.

We believe the company may be in the midst of a favorable turnaround, with share priced at an attractive level near the company's net cash position. Wireless demand for mobile entertainment services may also result in higher revenue levels over the next six- to twelve-months.

Bear of the Day:

Dell, Inc. (DELL)reported discouraging 1Q10 results with revenue and EPS falling below our estimates, and significant declines from the year-ago quarter. The rapid decline in corporate profits, highly illiquid capital markets and the recessionary outlook are likely to dampen corporate capital spending. This is likely to have a major impact on Dell's server business.

Adding to this is the continued decline in consumer spending as shown by the decrease in sales of PCs and cell phones over recent months. The company's marketing model of being the lowest priced supplier to the consumer in a declining market is likely to reduce margins over the coming quarters.

Although Dell is cutting costs, introducing new products and financing customers, given the uncertainty of the length of the current world-wide recession, we believe Dell will continue to struggle, posting inconsistent results in future quarters. We maintain our SELL rating with a new six-month target price of $8.00.

Latest Posts on the Zacks Analyst Blog:

Brazilian Deflation & Utilities

In the second half of 2009, the economic recovery in Brazil should help to stop IGPM deflation. According to the weekly focus survey conducted by the Brazilian Central Bank, the market expects IGPM to reach 1.69% for 2009.

The interesting point about the IGPM is that this index is used to calculate the tariff adjust for electric utilities in Brazil, like Cemig (CIG), Copel (ELP) and CPFL (CPL). During 2008, IGPM inflation was under pressure in the first three quarters of the year due to the strong economic growth, and in September, October and November it was under pressure because of the sharp devaluation of the Brazilian real. That was great for electric utilities.

Just as an example, CPL recent released the final indexes for the tariff Revision of CPFL with an annual Tariff increased 21.22% for CPFL Paulista, effective as of April 8, 2009. Short-term earnings of Brazilian electric utilities will be positively affected in the following quarters by this adjustment. However, for 2010 it will be quite different.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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 by visiting http://at.zacks.com/?id=2677.

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 InvestmentResearch 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=4582.

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

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.

Adding to this is the continued decline in consumer spending as shown by the decrease in sales of PCs and cell phones over recent months. The company's marketing model of being the lowest priced supplier to the consumer in a declining market is likely to reduce margins over the coming quarters.

Although Dell is cutting costs, introducing new products and financing customers, given the uncertainty of the length of the current world-wide recession, we believe Dell will continue to struggle, posting inconsistent results in future quarters. We maintain our SELL rating with a new six-month target price of $8.00.Zacks Investment Research

HIGH PROBABILITY TRADES USING THE CROSSHAIRS TRADER INTELLIGENCE REPORT

1. THE CROSSHAIRS TRADER DICTIONARY: COORDINATED ATTACK WHEN TRADING OPTIONS
2. OIL INVENTORY REPORT: OPPORTUNITIES ABOUND
3. THE CROSSHAIRS TRADER DICTIONARY: INTRODUCTION TO BATTLEFIELD TERRAIN

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

Garmin's Next Phase of Growth

GPS capability is expected to provide further impetus to growth in cell phones. Garmin Ltd. (GRMN) already enjoys an important position in automotive navigation, and management intends to leverage this position in the cell phone market.

The first step in this direction is the launch of the company's own smartphone. Although the cell phone market is relatively more competitive, management expressed enthusiasm about the growth prospects for its nuvifone.

The company announced two nuviphone models. Both phones are feature-rich 3.5G devices incorporating a PND with on-board maps and premium points of interest; UMTS, HSPDA and Wi-Fi data connectivity; a premium mobile web browser; a local search portal that seamlessly integrates navigation functions; SMS; instant messaging and e-mailing; a camera with automatic location tagging and picture navigation; and multimedia functions such as a video recorder, MPEG 4 video player and MP3. Research In Motion's (RIMM) Blackberry is the most popular platform for smartphones in North America. Apple's (AAPL) launch of the iPhone in Q3 of 2008 met with resounding success, lifting it to the second position.

3SBio Stays a Buy, Post Report

In addition to a diversified marketed product portfolio, 3SBio, Inc. (SSRX) also has a decent pipeline under development.

In the EPO franchise, the company has filed new drug applications (NDA) with China State Food and Drug Administration (SFDA) for higher dose EPIAO (36,000 IU/vial vs regular 10,000 IU/vial) for the treatment of anemia associated with chemotherapy in cancer patients. If approved, high-dose EPIAO would be the only dosage form of this kind available in China.

Also, 3SBio has completed preclinical test for NuPIAO and the company plans to move NuPIAO into clinic in 2009. NuPIAO is second generation of EPIAO that is designed to have a longer half-life. NuPIAO is comparable in structure and function to Amgen's (AMGN) Aranesp. Preliminary testing has demonstrated that NuPIAO has a comparable half-life to Aranesp.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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=2677

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=4580.

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

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

In the past 10 years, the fundamental shift in the semiconductor industry from corporate IT to consumer demand is very important to consider. It has created a different playing field. There are more products that use semi components (MP3s, cell phones, autos, "smart" houses). Seasonal demand is now an issue, such as Christmas and the Chinese New Year. Finally, the potential exists for more commoditized products and ASP [average selling price] erosion.

Firms that will out-perform in a slightly negative GDP environment include:

    
• Firms with the strongest balance sheets, such as Intel Corp. (INTC)    
• Companies that make specialized semiconductors (i.e. chips used in dentist X rays)    
• Firms that sell products that are technology-driven rather than capacity-driven    
• Companies that are gaining market share because of superior technology, like Varian Semi (VSEA)    
• Firms that sell products associated with regulation (e.g. power conservation), such as Power Integrations (POWI)

OPPORTUNITIES

Older technologies deliver power inefficiently, often consuming two or three times the amount of power needed by the end product and wasting substantial amounts of energy. Firms that provide solutions to so-called "energy vampires" will outperform. Our favorite name in this arena is Power Integrations, Inc. (POWI).

Intel's "Netbooks" are expected to attract first-time buyers in developing economies, while in developed economies, their pricing and portability are expected to help second- and third-unit sales per household. Although they are unlikely to be as efficient as some of the latest chips for desktops and servers, there is a longer-term potential for adoption in consumer electronic devices, embedded applications and thin clients.

Since the chip is specially designed for the portable market, the design excludes some features that lower the manufacturing cost. This is expected to help maintain margins even as volumes ramp up. Management stated that the Atom processor would generate margins in the 58% range. Given the enormous prospects, revenues are being broken out separately.

SITUATIONS TO AVOID

Trimble Navigation (TRMB) is an OEM of GPS-based products and control systems. December quarter results were short of consensus and management expectations, although they were in-line with management's preannouncement. Forward guidance is for a 6-18% sequential increase in Q1.

International markets will be the key to growth in 2009, as the negative impact of the recession on E&C is likely to be even more pronounced. We expect further declines in the share price as investors react to management conservatism, and the weakening market overall.

The E&C unit shrunk to 49% of revenue in the last quarter. The revenue share has been declining gradually, as the TFS and TMS segments experienced stronger growth. The problems in this business continued in the last quarter, with revenue declining double-digits, both sequentially and year over year.

The Middle East is undergoing temporary softness due to the fall-off in oil revenues. The traditionally strong U.S. and European construction markets experienced unprecedented weakness. A couple of factors indicate that the weakness could continue.

The first is the slower economy, which resulted in weaker demand for new construction products. The second is related to the uncertainty in the credit market. As construction companies are less certain about the availability of funds, they have cut back investment in new contruction equipment. While a lot of the order pullback may return as revenue, delayed decision-making is likely to continue for the next few quarters. Customers depleted inventories in the last quarter in favor of using cash for new equipment.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

Vivus: Big Hopes for Qnexa

We are initiating coverage of Vivus Inc (VVUS) with a `Hold' rating and $6 price target. We are optimistic with respect to the pipeline and feel the valuation is below fair; however, we are waiting for additional data from both Qnexa and avanafil before we are comfortable recommending the shares.

We view Qnexa as the leading phase III obesity candidate under development today. Qnexa is a fixed-dose combination of phentermine (15mg) and topiramate controlled release (92mg). Phentermine is FDA approved for use in obesity and topiramate has significant off-label use in obesity and smoking cessation.

Nokia Gains with Cheaper Phones

News from Nokia Corp (NOK) in Helsinki report that the new, lower priced smart phones are gaining market share against other smart phones, and that the smart-phone market should increase by about 20% versus a decline in total cell phones of about 10% for 2009.

Nokia's 5800, introduced late last year, is a tremendous success (as have been the cheaper Blackberry models), particularly outside North America. Nokia is the largest smart-phone maker with about 40% market share, although the company has not grown as fast as Research In Motion (RIMM) or Apple (AAPL) over the past year. It is too early to say, but the 5800 may reverse this trend.

Brazil Airline Competition Grows

The Brazilian airline sector grew 4.7% year-over-year during the first quarter 2009 according to the data released yesterday by ANAC (Brazilian Civil Airline Agency). While that was great news for the Brazilian airline sector, however, for GOL (GOL) and TAM (TAM) the news was not that great. If we only consider the two biggest companies -- GOL and TAM -- the growth was just 1.5%.

In fact, the growth was headed by smaller aggressive low fare companies, such as Oceanair, Trip, Azul and Webjet. Just as an example, Trip (a fast growing domestic airline) almost tripled its revenues during 2008!

Initiating BioDelivery as a Buy

We are initiating coverage of BioDelivery Sciences International (BDSI) with a Buy rating and a $6 price target. Paramount to our recommendation is the pending approval of Onsolis, a transmucosal fentanyl patch for breakthrough cancer pain. The FDA decision is expected on or before June 12, 2009.

We view the event as a high likelihood of approval (>80% chance). Approval will be a transformational event for BDSI. Not only will it bring about a $30 million milestone payment from worldwide commercialization partner Meda AB, but BDSI will also receive double-digit royalties (we estimate 20%) on sales of Onsolis upon launch.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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=2677

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=4580.

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

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

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday's Analyst Blog:

VLO Entering the Ethanol Business

Valero Energy (VLO), the largest North American refiner, has entered the ethanol business in a big way by acquiring the eight (8) ethanol plants of the bankrupt VeraSun Energy in a bankruptcy court auction. (VeraSun Energy went bankrupt in October 2008.)

Valero paid a total of $552 million (including adjustments for working capital) for the seven existing and one under-construction plant, which have a combined capacity of 760 million gallons per year (roughly 51,000 barrels per day). All the plants are located in Midwestern states.

PartnerRe Nicely Priced

Based in Bermuda, PartnerRe Ltd. (PRE) was formed in 1993, raising nearly $1 billion in an IPO to capitalize on the void in catastrophe reinsurance capacity following Hurricane Andrew and the concurrent difficulties faced by Lloyds of London. While beginning as a pure property reinsurer, the company has become a dynamic and diversified property-casualty (P&C) and life reinsurer over the years. At December 31, 2008, total assets were $16.3 billion, total capital was $4.9 billion, and total shareholders' equity was $4.2 billion.

PartnerRe will release its 1Q09 results after the market close on April 27, 2009, with a conference call scheduled the next morning. Its 4Q08 operating earnings of $53.9 million or $0.95 per diluted share were substantially short of estimates, primarily due to an unusually high tax rate.

Cautious on Dendreon's Rally

Shares of Dendreon Corp. (DNDN) jumped 38 percent last Friday and another 13% in early morning trading today. However, we don't see any clear rationale for the rally at this point of time. We believe investors are looking ahead to long-awaited data on the company's experimental Provenge vaccine to treat advanced prostate cancer, but we are cautious about the final results anticipated by the end of April.

As a reminder, Dendreon's lead drug candidate Provenge is under phase III IMPACT confirmatory study for prostate cancer under a special protocol assessment (SPA) with the FDA. Provenge is a therapeutic vaccine.

Sell DELL to $7 per Share

The rapid decline in corporate profits, highly illiquid capital markets, and the recessionary outlook are likely to dampen corporate capital spending. This is likely to have a major impact on Dell Inc.'s (DELL) server business.

Adding to this is the continued decline in consumer spending as shown by the decrease in sales of PCs and cell phones over recent months. Dell posted lackluster Q409 results as demand for equipment remained weak, although cost-cutting initiatives have helped boost its bottom line. The company's marketing model of being the lowest-priced supplier to the consumer in a declining market is likely to reduce margins over the coming quarters.

Hot Topic to Cool Off a Bit

We are downgrading Hot Topic Inc. (HOTT) shares from Buy to Hold. The stock has ripped 33% higher in the last four weeks, outperforming the rest of the market during the explosive rally off the March lows.

After a strong run, it makes sense to take profits in the name. What's more, we think Hot Topic's valuation may be a little stretched. While we continue to expect the retailer to report strong results, those expectations are now reflected in HOTT shares.

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