Chicago, IL – November 23, 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: China Mobile (CHL), Alcatel-Lucent (ALU), China Unicom (CHU), China Telecom (CHA) and Vodafone (VOD).

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Here are highlights from Friday’s Analyst Blog:

China Mobile Outlines 4G Plan

China Mobile (CHL), the world’s largest wireless carrier by subscriber, has revealed its plan to commence the trial run of its 4G network during World Expo 2010 to be held in Shanghai from May 1 to Oct 31, 2010. The company’s 4G service is based on the TD-LTE (Time Division Duplex Long Term Evolution) mobile broadband technology. Roughly 200 participants and 70 million visitors are expected to assemble at the Expo.

China Mobile has recently selected Alcatel-Lucent (ALU) for the responsibilities of design, construction, installation and integration of communication infrastructure to facilitate the 4G network trial. The TD-LTE network will provide advanced wireless services (including high-definition TV and ultra-fast broadband Internet access) to the visitors at the exposition.

The three major Chinese telecom operators China Mobile, China Unicom (CHU) and China Telecom (CHA) are investing heavily in Shanghai to improve the city’s network infrastructure, thereby ensuring the delivery of smooth network coverage for Word Expo 2010. China Mobile plans to invest RMB 15 billion ($2.19 billion) over the next three years in Shanghai.

China Mobile’s TD-LTE venture is being supported by the British telecom giant Vodafone (VOD).

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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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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 17, 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: Dell Inc. (DELL), Apple Inc. (AAPL), Nokia (NOK), Research In Motion (RIMM) and American Dairy Inc. (ADY).

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Here are highlights from Monday’s Analyst Blog:

Dell’s Smartphone Strategy

Dell Inc. (DELL), one of the world’s leading computer manufacturer, has decided to start manufacturing its smartphone device. The company has zeroed in on Brazil as the first manufacturing destination and chosen Claro as its carrier partner in the region. Dell will also be manufacturing the device in China and partner with China Mobile in that region. The phone will be using the Google Android operating system.

Dell’s entry into the smartphone segment looks like a logical progression, as the company is already manufacturing and rolling out reasonably priced netbooks in the market. However, Dell is a late entrant into the market, unlike its peer Apple Inc. (AAPL), which has already grabbed a large share through smartphones such as iPhone 3G and iPhone 3GS.

As per the technology research firm Canalys, third quarter 2009 worldwide smartphone shipments grew 4% year on year, to 41.4 million units. As per the findings of the research firm, Nokia (NOK) maintained its worldwide smartphone leadership position with a 40% share of the market, up from its year-ago position, but down 5% from the previous quarter. Research In Motion (RIMM) was in second place, with a market share of 21%, almost flat sequentially. Apple’s market share was 18% in the third quarter, up from the 14% it held in the second quarter, with significant improvement in the iPhone 3GS supply across many countries. HTC retained the fourth position with a 5% share.

There is no reason to think that Dell phones would not gain popularity considering the company’s history of innovation, although the success rate could vary as competition is intense. We believe that even if Dell is able to capture a small share of the smartphone market, the additional growth opportunity would be substantial.

American Dairy Beats Expectations

American Dairy Inc. (ADY) reported third quarter results before the opening bell today. The company’s net income from continuing operations stood at $11.1 million, or 52 cents per share, from a loss of $22.1 million, or $1.19 per share in the year-ago quarter. Quarterly earnings also surpassed the Zacks Consensus Estimate for a profit of 31 cents per share.

American Dairy is a leading producer and distributor of premium infant formula, milk powder, and soybean, rice and walnut products in China. The company, which operates through its wholly owned subsidiary Feihe Dairy and other subsidiaries, has 200 milk collection stations, 2 dairy farms and 6 production facilities. The company has capacity to produce approximately 1,220 tons of milk powder per day and a distribution network of over 90,000 retail outlets across China.

The Beijing-based company recorded an impressive 94.1% year-over-year growth in quarterly sales to $72.1 million. The expansion was primarily driven by strong demand for American Dairy’s milk powder products (mainly infant formula products), which recorded a 151.7% growth in volumes to 6,561 tons and contributed 77.5% to total sales. Moreover, the robust revenue performance was also helped by company’s augmented distribution network and efforts to expand into new geographic areas in China.

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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.

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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As per the technology research firm Canalys, third quarter 2009 worldwide smartphone shipments grew 4% year on year, to 41.4 million units.  As per the findings of the research firm, Nokia (NOK) maintained its worldwide smartphone leadership position with a 40% share of the market, up from its year-ago position, but down 5% from the previous quarter. Research In Motion (RIMM) was in second place, with a market share of 21%, almost flat sequentially.  Apple’s market share was 18% in the third quarter, up from the 14% it held in the second quarter, with significant improvement in the iPhone 3GS supply across many countries. HTC retained the fourth position with a 5% share.

There is no reason to think that Dell phones would not gain popularity considering the company’s history of innovation, although the success rate could vary as competition is intense. We believe that even if Dell is able to capture a small share of the smartphone market, the additional growth opportunity would be substantial. The technology research firm, iSuppli has projected that global smartphone shipments are expected to rise to 235.6 million units in 2010, an increase of 27.9% from 184.2 million units in 2009. So we believe that Dell has properly timed its smartphone entry, sensing the substantial growth opportunity that this segment offers. The company has the requisite financial strength and technical expertise to make a mark in this segment.

• Dell (NASDAQ:DELL) announced plans to enter the smartphone business, in partnership with China Mobile and Claro. Its first product, the Mini 3, will be designed around Google's (NASDAQ:GOOG) Android operating system

• Disney (NYSE:DIS) reported fiscal fourth quarter results after yesterday's close, with earnings ex-items coming in 5 cents a share better-than-expected at 46 cents. Revenues of $9.87 billion came in well ahead of Zacks estimates of $9.18 billion

• McDonald's (NYSE:MCD) addressed its plans to open 1,000 additional restaurants next year, and provide an image makeover to the rest.  The firm set targets for average annual sales growth of 3-5% and average annual operating earnings growth of 6-7%

• Abercrombie and Fitch (NYSE:ANF) reported third quarter non-GAAP earnings of 30 cents a share, well above Zacks estimates of 20 cents, as revenues of $765.4 million topped Zacks estimates of $763 million

• The rue21 IPO of 6,765,437 common shares was priced at $19.00 per share. The stock will trade on the NASDAQ with the symbol RUE

• Goldman Sachs (NYSE:GS) upgraded Goodyear Tire (NYSE:GT) shares to "buy"

China Unicom launched commercial trials of its WCDMA technology-based 3G services in 56 cities (including Beijing and Shanghai ) in May 2009 and subsequently extended that to 44 more cities. The company also initiated commercial 3G trials in 168 more Chinese cities in August 2009.

To facilitate the deployment of its 3G WCDMA network, China Unicom has collaborated with Ericsson (ERIC) under a $700 million deal. The company has also announced that it will adopt a uniform 3G tariff package in an effort to reduce prices for its 3G customers. Moreover, China Unicom will roll out several 3G handsets following the commercial 3G service launch.

China Unicom will spend RMB38.7 billion (US$5.6 billion) to develop its 3G business in 2009 and expects to achieve 74% penetration of the Chinese population by the end of the year. The company plans to invest RMB800 million (US$117 million) for 3G network deployments in Shanghai.

China Unicom operates in a highly competitive environment and faces stiff competition from its peers China Mobile (CHL) and China Telecom (CHA), who are also aggressively preparing for nationwide commercial launches of their respective 3G services.

Expansion of 3G services represents a key element in China Unicom's future growth as high-bandwidth advanced data applications are expected to boost revenue per user through increased usage.

While we remain bullish on China Unicom's prospects in the domestic 3G wireless market, the high level of capital expenditure associated with aggressive network deployments is expected to constrict margins and free cash flow moving forward.

Accordingly, we assess that successful expansion into low-penetration rural regions of China coupled with aggressive 3G TDSCDMA service deployments in 2009, and customized mobile value-added services establish China Mobile as the dominant mobile provider, far ahead of its nearest competitors. Additionally, a strong balance sheet, strong free cash flow and sustainable dividends facilitate the company's efforts to weather economic volatility.

We maintain our Outperform rating even as we factor-in potential impacts of a more competitive landscape and a comparatively weaker Chinese economy though the end of 2009.Zacks Investment Research

Chicago, IL – September 1, 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: China Mobile (CHL), Google (GOOG), Apple Inc. (AAPL), China Unicom (CHU) and Dell (DELL).

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Here are highlights from Monday’s Analyst Blog:

CHL Launches Ophone OS Platform

China Mobile (CHL) has reportedly launched its self-developed smartphone operating system platform today, known as the Open Mobile System (OMS). The Chinese wireless giant has also launched a line of handset models (called Ophones) based on its home-grown TD-SCDMA 3G wireless technology.

OMS is being developed by China Mobile leveraging Google’s (GOOG) open-source Android mobile operating system. This new software plaform is expected to drive the development of TD-SCDMA technology based cellular handsets.

Ophones, which operate on the OMS plaform, represents China Mobile’s response to the emerging threat from Apple Inc.’s (AAPL) iPhones. The company’s biggest rival, China Unicom (CHU), has reportedly sealed a three-year agreement with Apple to exclusively market the iPhone 3G in China through subsidized price plans. This has placed China Unicom in a strong position to drive its 3G subscriber count.

In order to facilitate the development and roll-out of Ophones, China Mobile has collaborated with leading international vendors such as Dell (DELL), LG, Lenovo, HTC and Samsung. More than 20 handset manufacturers are currently helping the company to expedite the development of its propritary wireless handset.

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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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This annualized drop in profit is primarily attributable to higher marketing expenses associated with the deployment of the company’s 3G wireless services and persistent decline in legacy landline business. China Telecom reported a 24% year-over-year rise in operating expenses for the period, largely due to an annualized increase of 60% in SG&A costs (including mobile handset subsidies).

The largest Chinese fixed-line operator reported revenue of RMB102.6 billion ($15 billion) for the period, up 14.8% year over year, driven by healthy contribution from its wireless segment which offset the fall in fixed-line business. EBITDA shrank 2.1% year over year to RMB43.3 billion ($6.3 billion) with EBITDA margin equating to 42.3% compared to 49.5% reported a year ago.

Revenue from the wireline segment dropped 3.1% year over year in the first half of 2009, reaching RMB86.6 billion ($12.7 billion). Voice and non-voice revenue accounted for 47.4% and 52.6% of total sales, respectively. Wireline subscriber base fell by 9 million during the period to approximately 199.4 million.

Wireline voice revenue declined 18.7% year over year due to a weak economy and accelerated fixed-to-mobile substitution. To revive its wireline business, China Telecom has initiated several steps including cost control and bundled wireline voice, non-voice and mobile services.

Broadband access revenue came in at RMB22.7 billion ($3.3 billion), growing 18.2% year over year. At the end of the first half, total broadband connections reached 49.05 million, up 22.8% year over year. China’s broadband market is expected to grow at a compound annual rate of 25% over the next three years, offering significant opportunity for China Telecom which targets to sign up 65 million customers by 2011.

Revenue from the company’s value-added information applications grew 15.6% year over year to RMB13.9 billion ($2 billion), representing about 13.5% of total sales. ‘Best Tone’ service revenue rose 16.6% year over year to RMB2.5 billion ($0.4 billion).

China Telecom added mobile operation to its service offering in October 2008 after the acquisition of China Unicom’s (CHU) code division multiple access (CDMA) wireless business for almost RMB43.8 billion ($6.39 billion). Total revenue from the wireless segment for the first half of 2009 was approximately RMB16 billion ($2.3 billion).

The company hopes to increase its total mobile subscriber base to over 100 million by 2011 from about 39.3 million users at the end of the first half (up 10.8% year over year), driven by continued success of its newly launched ‘e-Surfing’ mobile network brand. This will represent over 15% of the total Chinese wireless market.

China Telecom remains committed to its 3G wireless venture as it plans to sign up 35 million new 3G users in 2009 and address 97% of urban population by the end of 2009. The company’s 3G service covered 342 Chinese cities at the end of first six months. Its CDMA 2000-based 3G network (peak download speed of 3.1 megabit per second) is 50% faster than China Mobile’s (CHL) home-grown TD-SCDMA 3G network, giving it a major competitive advantage.

While we believe China Telecom is well positioned to benefit from the rapidly growing Chinese wireless market boosted by the 3G prospect, expenses associated with the ubiquitous deployment of high-speed wireless services will hurt profit and margins through 2009.

Chicago, IL – August 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: China Mobile (CHL), Microsoft (MSFT), Chunghwa Telecom (CHT), Apple Inc. (AAPL) and China Unicom (CHU).

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 Monday’s Analyst Blog:

China Mobile Goes for “Ophones"

China Mobile (CHL) has reportedly entered into a strategic agreement with Taiwan-based High Tech Computer Corp (commonly known as HTC) today to jointly develop 3G smartphones in China. The joint-venture will design and develop handset models (called "Ophones") based on China Mobile’s home-grown TD-SCDMA 3G technology. The agreement also covers the development of TD-LTE, a 4G mobile broadband technology based network.

HTC, the world’s largest maker of handsets based on Microsoft’s (MSFT) Windows Mobile platform, will develop and supply at least seven 3G handset models by 2010 (including one in 2009). On the other hand, China Mobile will invest RMB47 million ($6.9 million) in the joint-venture and will provide customer service and support. This strategic collaboration will significantly help China Mobile to promote its TD-SCDMA technology in the nascent domestic 3G wireless market.

China Mobile is also exploring opportunities for technology collaboration with other Taiwanese companies such as Chunghwa Telecom (CHT) and MediaTek Inc. Moreover, the company aims to acquire a 12% stake in Far EasTone Telecommunications, Taiwan's third-largest mobile-phone operator by revenue, for approximately $529 million. This strategic investment will open up an opportunity for network and technology synergies as Far EasTone also plans to develop 3G TD-SCDMA based network.

In addition to the expansion of its 3G TD-SCDMA network, China Mobile is increasingly focusing on developing 3G smartphones to counter competition from Apple Inc.’s (AAPL) iPhones. The company’s closest competitor, China Unicom (CHU), is currently negotiating with Apple to bring iPhones to China, potentially in 2009. China Mobile hopes its relatively low-priced smartphones will drive demand for 3G services in China and boost associated subscriber growth.

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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.

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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This tepid growth reflects the company's expansion to the low-income rural segment, as well as intense competition in the second-quarter 2009 that contributed to lower subscriber growth on a year-over-year basis. China Mobile reported 45% year-over-year growth in net income in the first-half 2008.

The Chinese wireless behemoth reported revenue of RMB212.9 billion (US$31.2 billion) for the period, up 8.9% year over year, partly driven by increased contribution from value-added services (28% of total revenue). EBITDA increased 5.8% year over year to RMB109.9 billion (US$16.1 billion) with EBITDA margin equating to 51.6%.

The company's value-added business, which includes SMS, Color Ring and MMS, continues to grow rapidly with revenue increasing 13.7% to RMB59.9 billion (US$8.8 billion). To further drive growth of its value-added business, China Mobile recently launched "Mobile Market", an on-line store to offer a broad range of mobile applications. Usage fee revenue grew 9% year over year to RMB134.9 billion (US$19.8 billion), accounting for approximately 63% of the total revenue.

Chine Mobile added approximately 35.9 million subscribers (at an average monthly rate of 6 million) during the first-half 2009, and ended the period with 493 million customers. ARPU (average revenue per user) for the period was RMB75, compared to RMB84 a year ago. The decrease resulted from the company's strategy to attract more rural subscribers to expand coverage regions.

China Mobile maintained its 43% dividend payout objective for the full year 2009 as the Board of Directors recommended an interim dividend of HK$1.346 (RMB1.187) per share.

During the first-half 2009, the company made significant progress in expanding 3G network deployments covering approximately 38 Chinese cities. At the end of the period, China Mobile had 959,000 3G subscribers. The company plans to spend RMB 58.8 billion (US$8.6 billion) on 3G network build-outs in 2009 and aims to deploy approximately 60,000 base stations across 238 cities. China Mobile recently revealed its plan to amass roughly 80 million 3G customers by 2011.

However, the company faces significant challenges moving forward from the aggressive 3G service roll-out initiatives by competitors China Unicom (CHU) and China Telecom (CHA). China Mobile operates the home-grown TD-SCDMA technology-based network compared to the widely popular international 3G standards used by its Chinese peers.

Maturity of the lucrative urban markets has directed China Mobile to expand its business in the rural areas, considered less affluent market regions of China with below 20% wireless penetration. As a result, margins may be challenged in future reporting periods due to lower ARPU. Nevertheless, expansion into rural markets remains one of the higher priorities for China Mobile as competition intensifies moving forward.

We assess that a leading wireless portfolio, broad network coverage, aggressive 3G service deployments and first-to-market advantage in value-added services will continue to establish China Mobile as the dominant wireless provider, far ahead of its nearest competitors.

Chicago, IL – August 3, 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: China Unicom (CHU), Telefonica (TEF), Ericsson (ERIC), China Mobile (CHL) and China Telecom (CHA).

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:

CHU Expanding 3G Trials

China Unicom (CHU) has launched commercial trials of its 3G services in 56 cities (including Beijing and Shanghai) in May 2009 and recently extended that to 44 more cities. The company plans to spend RMB110 billion (US$15.9 billion) in 2009, with the significant increase (approximately 56% year over year) primarily attributable to 3G network related investments.

The company plans to cover 284 cities by the end of the current year with 74% penetration of Chinese population and aims to lure 30 million users within one year of launch. China Unicom is currently bidding for procuring WCDMA technology and equipment and has also collaborated with Spain’s Telefonica (TEF) for developing 3G services. Recently, the company has entered into a $700 million agreement with Ericsson (ERIC) which will provide the necessary network equipment to facilitate the deployment of the 3 WCDMA network in 15 provinces.

China Unicom contends with an increasingly competitive domestic wireless market. The company’s peers China Mobile (CHL) and China Telecom (CHA) are also aggressively preparing for nationwide commercial roll out of their respective 3G services.

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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.

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

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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

According to a Chinese media source, the second-largest Chinese wireless carrier has secured an exclusive distribution right for iPhones for three years. If everything goes as planned, the company will launch iPhone 3G by the end of September 2009. However, none of the companies have confirmed any such deal officially.

The agreement calls for China Unicom to purchase iPhones worth RMB 3,000 ($439) per unit from Apple and guarantee annual sales of 1-2 million units, producing at least RMB 5 billion ($732 million) in revenues. Apple will book profits from terminal sales and value-added services generated by the iPhone platform.

China Unicom has long been in negotiations with Apple to bring iPhones to China. The company’s principal rival China Mobile (CHL) also bid for an exclusive iPhone distribution deal but failed due to disagreements over revenue sharing. Moreover, China Mobile’s indigenously developed 3G network currently does not support iPhones.

The iPhone deal represents a major opportunity in the wireless market for China Unicom.

The company currently operates in a highly competitive environment and faces stiff competition from China Mobile and China Telecom (CHA). This has led to intense pricing pressure and resulted in lower average revenue per user (ARPU). Competition in the Chinese wireless market has become more intense with the distribution of 3G licenses as all three major operators are aggressively preparing for nationwide commercial launch of their respective 3G services.

Following the overhaul of the Chinese telecom industry in late 2008, China Unicom secured the license for WCDMA, a widely adopted 3G technology with approximately 70% share of worldwide 3G subscribers. The company will leverage its 3G WCDMA network by bringing iPhones to mainland China and get a significant competitive edge over China Mobile while boosting ARPU levels.

While we remain bullish on China Unicom’s growth prospects in the 3G wireless market given the iPhone opportunity, we remain concerned over the precipitous declines in the landline business. Additionally, high level of capital expenditure is expected to constrict margins and free cash flow levels for the remainder of 2009. Consequently, we maintain our Hold recommendation on China Unicom.

The growing acceptance of LTE technology has prompted the mobile handset makers to develop phones that will be compatible with this network. NTT DoCoMo will launch LTE handsets in 2011 compatible with its current 3G network, enabling the customers to access services even if they are outside an LTE coverage area. LTE is expected to achieve download transmission speeds of 300Mbps and offers several advantages over other wireless techniques. This includes spectral efficiency, lower costs, and solid integration with other open wireless standards.

Recent rumors within the broadband industry are suggestive of an expected deal between the legendary iPhone maker Apple Inc (AAPL) and Verizon Wireless (VZ) to introduce a new LTE-compatible iPhone. Nokia Corp (NOK), the largest mobile phone developer in the world, has also entered in the race and is expected on launch LTE-based mobile handsets by 2011.

Qualcomm Inc. (QCOM), one of the key developers of OFDMA (Orthogonal Frequency Division Multiple Access) based chipsets has decided to introduce the trial version of LTE-compatible chipsets during the second half of 2009. LG Electronics, on the other hand has already given a demonstration of LTE-based modem during the Mobile World Congress of 2009.

Chicago, IL – July 20, 2009 – Zacks.com announces the latest Industry Outlook. Today’s outlook from Zacks Equity Research analyst David Weissman discusses the Telecom sector. Highlighted stocks include: Qualcomm (QCOM) and China Mobile (CHL).

In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines.

With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins.

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Qualcomm (QCOM) and China Mobile (CHL). These entities have significant cash, and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.

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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=5511.

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Visit: www.zacks.com 

Based on extreme industry weakness in late 2008 and early 2009, we believe valuation levels now reflect remedial conditions in the economy. Depressed stock prices foster more favorable entry points at this juncture as government stimulus plans and restricted operating expenses may drive opportunities for improved earnings.

Telecom companies are starting to report minimal financial improvements in terms of revenue and earnings levels. In addition, economic stimulus plans throughout the world, including the U.S. broadband infrastructure development program -- and similar structural subsidies in China and India -- may be a boon for selected service providers and equipment manufacturers.

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry.

It is our belief that at this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this possible economic inflection point.

OPPORTUNITIES

The transient collapse of financial markets has become an indelible lesson to many of us. With this, we have seen that sector diversity is a less secure planning tool in today's increasingly correlated world markets.

However, there are some tactics and opportunities that may be appropriate to address the downturns in the telecom industry, should we be greeted with them again. We consider the following:

Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities.

In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining.

International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio.

Balance Sheet Positions - In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines.

With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins.

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Qualcomm (QCOM) and China Mobile (CHL). These entities have significant cash, and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.

RISKS AND WEAKNESSES

Generally, telecom companies that have exhibited significant degrees of valuation decline have had high debt levels and large financial leverage ratios. These companies, while offering recurring cash flow to service their debt obligations, may have difficulties should overall business decline as consumers and businesses become more selective with their spending behavior. Risks that still remain include the following:

Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures.

Exacerbated Borrowing with Credit & Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity.

Economic Impact Straining Consumer & Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections). Zacks Investment Research

Based on extreme industry weakness in late 2008 and early 2009, we believe valuation levels now reflect remedial conditions in the economy. Depressed stock prices foster more favorable entry points at this juncture as government stimulus plans and restricted operating expenses may drive opportunities for improved earnings.

Telecom companies are starting to report minimal financial improvements in terms of revenue and earnings levels. In addition, economic stimulus plans throughout the world, including the U.S. broadband infrastructure development program -- and similar structural subsidies in China and India -- may be a boon for selected service providers and equipment manufacturers.

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry.

It is our belief that at this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this possible economic inflection point.

OPPORTUNITIES

The transient collapse of financial markets has become an indelible lesson to many of us. With this, we have seen that sector diversity is a less secure planning tool in today's increasingly correlated world markets.

However, there are some tactics and opportunities that may be appropriate to address the downturns in the telecom industry, should we be greeted with them again. We consider the following:

Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities.

In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining.

International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio.

Balance Sheet Positions - In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines.

With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins.

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Qualcomm (QCOM) and China Mobile (CHL). These entities have significant cash, and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.

RISKS AND WEAKNESSES

Generally, telecom companies that have exhibited significant degrees of valuation decline have had high debt levels and large financial leverage ratios. These companies, while offering recurring cash flow to service their debt obligations, may have difficulties should overall business decline as consumers and businesses become more selective with their spending behavior. Risks that still remain include the following:

Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures.

Exacerbated Borrowing with Credit & Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity.

Economic Impact Straining Consumer & Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections). Zacks Investment Research

Since 2004, the company has spent RMB19.5 billion (US$3 billion) to extend its network coverage into the remote villages of the country.

The largest mobile carrier in the world by subscribers has signed a pact with the country's Ministry of Agriculture to include more than 10,000 villages annually under its network coverage, enabling people in these regions to access the company's wireless services by 2012. This will translate into 98% coverage of China's rural areas by the end of the 3-year term.

Additionally, China Mobile will also promote its indigenously developed 3G technology-based services in these covered territories.

China Mobile's leadership position in the global wireless market is supported by a consistently healthy Chinese economy, increased consumer purchasing power and relatively low wireless penetration (approximately 46% at the end of 2008) in China. However, saturation of the lucrative urban markets in the eastern part of the country has shifted the company's focus to rural markets, considered less affluent market regions of China with below 20% wireless penetration.

China Mobile commanded an 88% share of the net new customer additions in 2008; half of which were derived from rural market areas.

Expansion into rural markets remains one of the higher priorities for China Mobile as the company faces a more intense competitive landscape due to the recent overhaul of the Chinese telecom industry and distribution of 3G licenses by the government.

The company's peers, China Unicom (CHU) and China Telecom (CHA), are currently aggressively pursuing nationwide deployment of their respective 3G services. As such, China Mobile is using the rural expansion strategy as a defense mechanism to protect its subscriber base.

We assess that successful expansion into low-penetration rural regions of China, coupled with 3G service deployments through 2009 and customized mobile value-added services, establish China Mobile as the dominant mobile service provider; far ahead of its nearest competitors.

Consequently, we maintain our Buy recommendation for China Mobile.

The company earlier updated its guidance for the second quarter of fiscal 2009. As demand from OEMs providing equipment for Asian 2G and 3G wireless networks remains strong, management reiterated its prior guidance for quarterly sales that indicates a 2% – 7% sequential growth.

The main drivers for growth in Q2 are new products. Sales of 65-nanometer devices are up sharply, while sales of the company's 40-nanometer devices are on track to double from first-quarter levels, as projected by the management. Altera expects Stratix IV to continue its revenue ramp and management forecasts $3 million in revenue in Q2 and close to $10 million in revenue for Q3 with much of this already in backlog.

The rollout of third-generation mobile networks across China will play a huge role in designing the growth chart for the company. Altera has a large exposure to the telecommunications industry. The three top communications carriers in China -- China Unicom (CHU), China Telecom (CHT) and China Mobile (CHL) -- are planning to expend around $42 billion in the next two years in both telecom networking and wireless. Hence, China provides a significant opportunity for growth.

The company has already started rolling out the 40nm Stratix IV GX FPGA family with initial shipments of the EP4SGX530. This is ahead of its prime competitor Xilinx (XLNX). The rollout follows Altera’s first 40nm FPGA, the EP4SGX230, which was introduced in December 2008.

New product introductions and technology migrations will determine Altera’s future. It not only has to be technologically more advanced, but also ahead of Xilinx. During the 65nm transition cycle for the semiconductor industry, Altera trailed Xilinx significantly in terms of timing. We maintain our Buy on Altera.

Chunghwa’s second-quarter revenue was also below our expectations of NT$49 billion. This was primarily due to lower phone calls and utilization of internet data services by consumers as a result of the general economic downturn together with lower call tariffs imposed by the Taiwanese Government.

However, the company’s net earning was above our estimates of NT$10.9 billion. This is despite the fact that Chunghwa has undertaken significant expenses to upgrade its wireless network to support high-speed voice and data communications.

Taiwanese telecom market is quickly approaching maturity and has become extremely competitive following telecom regulatory changes. Chunghwa competes in a tough environment with two other major service providers - Taiwan Mobile Co. and Far EasTone Telecommunications Co. Ltd.

The market size is comparably smaller than other regional country markets, with approximately 23 million potential customers. Therefore, advanced technology deployment is critical for Chunghwa’s operations to retain a leading edge. We expect fierce competition going forward as Chinese giant China Mobile (CHL) has purchased a 12% stake in Far EasTone Telecommunications.

Chunghwa collaborated with Nokia (NOK) to expand its 3G wireless networks of WCDMA and HSDPA. The 3G services are expected to facilitate the company’s continued leadership by offering a wider array of advanced features and higher speeds. Ongoing network transformation initiatives to a single, IP-based converged network will be completed by 2013.

The company is building large-scale fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) access infrastructure and is aiming to provide both of these facilities to 75% of Taiwan’s population by 2011. Chunghwa will also launch Apple’s (AAPL) latest iPhone 3GS in August 2009. We reaffirm Buy rating for Chunghwa Telecom.

Chicago, IL – July 9, 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: Colgate Palmolive (CL), China Mobile (CHL), ICICI Bank (IBN), Tele Norte (TNE) and Toyota Motor Corp. (TM).

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:

IMF Grows More Optimistic

While the U.S. is gaining share of the world economy relative to the other advanced economies, it is losing share to the developing parts of the world, most notably China and India. While the two emerging giants have not been immune to the world economic slowdown, they have held up much better than most.

This year the IMF expects China to grow 7.5% and for India to post growth of 5.4%. Next year, both are expected to see their growth accelerate to 8.5% and 6.5%, respectively. Without a doubt, that is much slower than they were growing a few years ago -- in 2007, China grew 13.0% and India grew by 9.4% -- but is still extremely healthy relative to everywhere else.

In other words, the pace at which they are picking up share of the world economy has actually accelerated during the downturn. In 2007, China grew 7.9% percent faster than the world as a whole (and more than that ex China), while this year it will (assuming the IMF projections are accurate) grow 8.9% faster. For India, the relative acceleration is even more significant, growing from a 4.3% lead in 2007 to a 6.8% lead this year.

This suggests to me that gaining some exposure to China and India in your portfolio is still a good thing to do. This can be done indirectly through buying U.S. multinationals such as Colgate Palmolive (CL).

China Mobile (CHL) might be a firm to investigate for exposure to China, and ICICI Bank (IBN) is a good way to get exposure to India.

The other two BRIC countries have not fared as well in the downturn, with Russia being particularly hard hit due to the decline in Oil prices from a year ago. It is expected to see a decline of 6.5% this year before rebounding with 1.5% growth next year. The IMF cut this year’s forecast for Russia by 0.5% relative to April, but raised its outlook pretty sharply by 1.0% for next year.

Brazil has held up relatively well in the downturn but it is not immune, with an economic contraction of 1.3% this year, then a rebound of 2.5% positive growth next year. Brazil can also be played through individual ADRs such as Tele Norte (TNE).

Toyota Gears Up on Highlander Plant

Toyota Motor Corp. (TM) is reportedly spending $500 million on retooling its southwestern Indiana plant (Princeton) for production of the Highlander sport utility vehicle. The total investment on this facility now rises to about $3.7 billion. The company, which is the largest automaker in the world in terms of sales and production, plans to begin production at the facility in October 2009 with 300,000 vehicles per annum.

According to the Associated Press, Toyota plans to spend $500 million entirely on acquiring new equipment at the Princeton facility. The company has no intention of spending on expansion or job creation at the facility. About 300 employees at the plant opted for voluntary retirement on payment of $20,000 and other incentives. The plant currently employs about 4,200 employees.

Last year, Toyota had announced major changes in its production mix on the back of changing consumer demand from large-size trucks to smaller vehicles. The production of Tundra full-size pick-up truck is planned to be shifted from the Princeton facility to the San Antonio plant in the second half of 2009.

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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.

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

Qualcomm Inc. (QCOM), the largest developer of digital mobile chipsets based on CDMA wireless technology, has decided to collaborate with Chinese telecom equipment provider ZTE Corp to upgrade the capacity and performance of UMTS system. UMTS (Universal Mobile telecommunications System) is a 3G wireless technology that uses W-CDMA, TD-CDMA, and TD-SCDMA as the underlying air-interface.

The Qualcomm-ZTE joint venture will try to integrate Qualcomm's Uplink Interference Cancellation technology into ZTE's next-generation UMTS base station products. This will allow the mobile service providers to boost their UMTS data throughput by up to 60% and also increase voice capacity by up to 45%.

We believe this partnership will help Qualcomm to expand its business in the Chinese wireless market. The three major telecom operators in China, viz, China Mobile (CHL), China Unicom (CHU) and China Telecom (CHA) are quickly expanding their respective 3G networks based on TD-SCDMA technology.

China is the largest wireless market in the world with respect to subscriber count. At the end of May 2009, China had nearly 680 million wireless subscribers and a penetration of approximately 45%. It is estimated that the number of mobile users in this region may surpass 750 million by 2010. Therefore, Qualcomm has significant business opportunities in China.

Outside China, UMTS is a well-established wireless technology in Western Europe and Japan. The high-speed UMTS network is now primarily utilized for internet access, either directly on a mobile handset or connected to a computer via Wi-Fi, Bluetooth, Infrared and USB. We reaffirm our Buy recommendation for Qualcomm.

Long Term Evolution (LTE) technology is ahead in the race as the most sought after next-generation (4G) wireless network standard in the market. The 4G wireless networks are aiming to cope with substantial demand for high-speed wireless data services and mobile video. LTE is an IP-based modulation standard and a set of enhancement for the existing Universal Mobile Telecommunications System (UMTS). This technology has been pioneered by the 3rd Generation Partnership Project (3GPP), a telecom industry body comprising wireless carriers and equipment vendors who have been buying and selling the same proprietary products for years.

Verizon Communication (VZ), the largest carrier in the U.S., and NTT DoCoMo (DCM), the largest carrier in Japan, are the first two companies to decide on implementing LTE-based networks by 2010. Vodafone (VOD), the largest mobile carrier globally on revenue count, and AT&T (T) will implement LTE by 2012. Recently, China Mobile (CHL), the largest wireless operator globally on subscriber count, has also decided to opt for 4G LTE technology.

LTE offers several advantages over other 4G techniques like WiMAX, Ultra Mobile Broadband (upgrade of CDMA EV-DO) and Multi-input Multi-output (MIMO) Wireless LAN. This includes improvement in spectral efficiency, lower costs, and solid integration with other open wireless standards. These are the compelling reasons influencing the switch to LTE technology.

LTE provides downlink and uplink peak rates of 100 Mbit/s and 50 Mbit/s respectively, with RAN (radio access network) round-trip times of less than 10ms. LTE also supports flexible carrier bandwidth and both FDD (frequency division duplexing) and TDD (time division duplexing) on the same platform. Ability to incrementally increase speed and capacity are the major hallmarks for its acceptability to wireless carriers. Therefore, LTE gear makers like L.M. Ericsson (ERIC), Alcatel-Lucent (ALU), Nokia-Siemens and Huawei Technologies Ltd look to gain substantially from this state-of-the-art technology.

We reiterate Buy for Vodafone, NTT DoCoMo, and China Mobile while continuing to maintain Hold for Verizon, AT&T, L.M. Ericsson and Alcatel-Lucent.

China Mobile (CHL) has reportedly accelerated the development process of its 4G (next generation) mobile broadband network. The world's largest carrier has already completed the first phase of trials and is set to commence the second phase in late July or early August 2009.

A successful completion of the second-phase trials (expected by the end of 2009) will pave the way for launching field tests in early 2010. China Mobile has partnered with Vodafone (VOD) and Verizon Wireless (VZ) for the TD-LTE venture and has selected Ericsson (ERIC), Alcatel-Lucent (ALU), Nokia Siemens, Huawei Technologies and ZTE Corp as the primary technology vendors. The company plans to devote approximately 60% of its capital expenditure over the next few years to develop its 4G network.

China Mobile recently accelerated its development plan for TD-LTE due to uncertainties regarding the success of its 3G services based on TD-SCDMA. The company faces challenges regarding the adaptability and performance of this indigenously developed 3G standard.

This is due to the fact that other European and American based 3G standards such as WCDMA and CDMA2000, which are licensed to China Unicom (CHU) and China Telecom (CHA) respectively, offer faster network speeds and already have wide acceptability in the marketplace. For example, the CDMA 2000 based 3G network of China Telecom is 50% faster than China Mobile's TD-SCDMA network. Additionally, TD-SCDMA also suffers from certain limitations when it comes to international roaming.

Leading carriers across the world have adopted LTE as the base technology standard for 4G network upgrade initiatives due to its fast data transfer capability. LTE offers rapid downlink and uplink speeds of 100 megabits per second and 50 megabits per second, respectively, which is competitive or faster than other leading 4G standards including WiMax.

China Mobile aims to leverage the 4G TD-LTE opportunity to offset limitations of the TD-SCDMA based 3G services, which may restrict its wider market adoption. Moreover, this move will also provide an opportunity to leapfrog over its Chinese peers to emerge as the first carrier to deploy 4G LTE-based mobile broadband network in China, representing a significant competitive advantage. That said, we maintain our Buy rating on China Mobile.

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines. With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins.

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Tekelec (TKLC), Kongzhong (KONG) and China Mobile (CHL) These entities have significant cash and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.

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=2679.

About Zacks 

The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month.

The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.

Telecom companies are starting to report minimal financial improvements in terms of revenue and earnings levels. In addition, economic stimulus plans throughout the world, including the U.S. broadband infrastructure development program -- and similar structural subsidies in China and India -- may be a boon for selected service providers and equipment manufacturers.

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry.

It is our belief that in this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this possible economic inflection point.

OPPORTUNITIES

• Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities. In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining
• International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio
• Balance Sheet Positions - In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines. With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins

RISKS AND WEAKNESSES

• Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures
• Exacerbated Borrowing with Credit & Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity
• Economic Impact Straining Consumer & Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections)

Telecom companies are starting to report minimal financial improvements in terms of revenue and earnings levels. In addition, economic stimulus plans throughout the world, including the U.S. broadband infrastructure development program -- and similar structural subsidies in China and India -- may be a boon for selected service providers and equipment manufacturers.

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry.

It is our belief that in this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this possible economic inflection point.

OPPORTUNITIES

• Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities. In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining
• International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio
• Balance Sheet Positions - In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines. With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins

RISKS AND WEAKNESSES

• Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures
• Exacerbated Borrowing with Credit & Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity
• Economic Impact Straining Consumer & Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections)

Based on extreme industry weakness in late 2008 and early 2009, we believe valuation levels now reflect remedial conditions in the economy. Depressed stock prices foster improved investment entry points more favorable at this juncture should stimulus plans, restricted operating expenses and higher earnings level result along with sustainable purchasing activity.

Telecom companies are starting to report minimal financial improvements in terms of revenue and earnings levels. In addition, economic stimulus plans throughout the world, including the U.S. broadband infrastructure development program -- and similar structural subsidies in China and India -- may be a boon for selected service providers and equipment manufacturers.

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry.

It is our belief that in this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this possible economic inflection point.

OPPORTUNITIES

The transient collapse of financial markets has become an indelible lesson to many of us. With this, we have seen that sector diversity is a less secure planning tool in today's increasingly correlated world markets. However, there are some tactics and opportunities that may be appropriate to address the downturns in the telecom industry, should we be greeted with them again. We consider the following:

• Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities. In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining    
• International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio    
• Balance Sheet Positions - In our view, companies showing significant net-cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth, but often do not consider overall market declines. With the S&P 500 P/E between 10 and 12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins

RISKS AND WEAKNESSES

Generally, telecom companies that have exhibited significant degrees of valuation decline have had high debt levels and large financial leverage ratios. These companies, while offering recurring cash flow to service their debt obligations, may have difficulties should overall business decline as consumers and businesses become more selective with their spending behavior. Risks that still remain include the following:

• Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures    
• Exacerbated Borrowing with Credit & Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity    
• Economic Impact Straining Consumer & Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections)

Chicago, IL - April 3, 2009 - Zacks Equity Research highlights Haemonetics Corp. (HAE) as the Bull of the Day and Votorantim Celulose S.A. (VCP) the Bear of the Day. In addition, Zacks Equity Research provides analysis on China Mobile (CHL), Chunghwa Telecom (CHT) and Sabesp (SBS).

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:

Low worldwide penetration combined with demand outstripping supply makes a positive long-term thesis for investing in the blood processing and supply chain management industry. Haemonetics Corp. (HAE) has benefited from recent acquisitions that have added novel technologies.

Additionally, recent supply agreements and double-digit growth demonstrate HAE's strong market position in a growing industry.

Bear of the Day:

We are maintaining our Sell recommendation on Votorantim Celulose S.A. (VCP). The short-term outlook for pulp prices is quite uncertain as a result of the current credit crisis.

Fourth quarter results were bad as expected, but the pulp and paper sales volume were in line with the company's guidance in spite of the production stoppage in the Jacareí and Conpacel units in November 2008.

The recent reduction in demand in Europe and North America, along with the U.S. financial crisis, resulted in a decrease in pulp list prices all over the world. The growth in net debt is a problem and the lack of transparency in the merger deal with ARA raises many doubts.

Latest Posts on the Zacks Analyst Blog:

Boiling Down the G-20 Summit

We would note, that while many emerging economies have been slammed by the crisis, that is not true of all of them. Some of the largest emerging economies are still recording positive growth. The most significant of these is China, which will probably grow about 6.5% this year, well down from the 11%+ levels it has seen in the recent past, but still very healthy compared to the rest of the world.

Two Chinese stocks we like are both in the Telecom sector, China Mobile (CHL) and Chunghwa Telecom (CHT).  Brazil is also in relatively good shape, a name to look at there is Sabesp (SBS) which provides water and sanitation services in Sao Paulo.

Get the full analysis of all these stocks by going to 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 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.

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.

Contacts:

Mark Vickery

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 Thursday's Analyst Blog:

Pfizer to Trim Animal Health Biz

Yesterday, Pfizer Inc. (PFE) announced that it may have to sell a portion of its animal health business in order to gain regulatory clearance for its proposed purchase of Wyeth Pharmaceuticals (WYE). On January 26, 2009, Pfizer announced that it planned to buy Wyeth for about $68 billion.

The merger would create a company with combined revenue of about $71 million, according to Pfizer's estimates. We forecast revenue from the combined animal health businesses would equal about $3.8 billion in 2009 before any divestitures, making it the largest in the world. Schering-Plough (SGP) had held that title since its purchase of Organon BioSciences in November 2007. Schering's animal health sales were almost $3 billion in 2008.

China Mobile a Buy on Stimulus

China Mobile (CHL) reported 2008 annual results today along with encouraging 2009 expectations based on the Government of China's estimated economic stimulus program of 4 trillion yuan ($586 billion). The company believes the domestic stimulus plan will stimulate demand for telecommunications and information services with the active promotion of homegrown innovation.

From a financial perspective, total 2008 revenue reached RMB $412 billion, up 15.5% from 2007. Net profit to shareholders for full year 2008 increased 29.6% to RMB 112 billion and the dividend payout ratio was approximately 43%. Total subscriber count exceeded 457 million with net subscriber additions averaging over 7.3 million per month. The company plans to maintain its dividend payout ratio at 43%. We reiterate our Buy rating.

AIG Execs, Give It Back!

Apparently the contracts that were signed by AIG (AIG) with its executives in its Financial Products unit -- the part of the company that wrote all the Credit Default Swaps and sank the company and almost sank the world financial system -- are iron clad. So says Treasury Secretary Tim Geithner and AIG CEO Ed Liddy (installed at only $1 a year after the mess had been made).

I'm a finance and economics guy, not a lawyer, but it does strike me that there are probably several grounds on which the contracts are at least ambiguous enough that the company should have avoided paying them. If a company knows it is in financial trouble, it cannot strike sweetheart deals with some parties that transfer the assets of the company to them at the expense of other interested parties. This is the essence of the idea of fraudulent convenience.

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

Accordingly, we assess that successful expansion into low-penetration rural regions of China, along with effective network optimization strategies and customized mobile value-added services, establishes China Mobile as the dominant mobile provider, far ahead of its nearest competitors. China Mobile currently commands 70% share of the Chinese wireless market.

Regardless of additional competition, significant opportunities remain due to a substantial untapped user market, not to mention new valued-added offerings and the 3G deployments to follow. We maintain our Buy rating even as we factor in potential impacts of a competitive landscape and a comparatively weaker economy.
"CHL" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Telecom carriers and equipment providers that offer the most attractive opportunities are focused on third-generation (3G) wireless, broadband (DSL) and fiber-to-the-home/node networking. There are also a few market leaders that have proven able to survive the sometimes turbulent opportunity swings in the industry. It is our belief that in this uncertain stage of macroeconomic events, companies with strong balance sheets and firm net cash positions, along with sustainable dividends, provide respectable risk/reward profiles. On the other hand, highly-leveraged companies should be avoided, at least at this economic juncture.

OPPORTUNITIES

The transient collapse of financial markets has become an indelible lesson to many of us. With this we have witnessed that sector diversity is a less secure planning tool in today's increasingly correlated world markets. However, there are some tactics and opportunities that may be appropriate to address the downturns in the telecom industry, should we be greeted with them again. We consider the following:

* Necessity for Telecommunications - The need for telecom in both rural and urban areas, and its role in the infrastructure of both developed and developing markets, continues to grow. Wireless infrastructures and/or low-cost integrated IP voice and data wireline networks are necessities. In fact, most global subscribers will not give up their wireless phones and services that easily, although upgrades to advanced (high-end) handsets/offerings may be sensitive to overall consumer/business budgets. This is accompanied by telecom carriers' continued quest for operational flexibility and streamlining * International Diversification - While country diversification offers only limited protection in the current highly-correlated world equity markets, it offers hedging capabilities from local economic weakness and associated currency exchange differentials. Therefore, a significant allocation of foreign telecom companies would be appropriate as part of a technology-focused portfolio * Balance Sheet Positions - In our view, companies showing significant net cash positions become attractive in volatile markets. It is important to consider balance sheet conditions that may limit the vulnerability of telecom companies in weak economies. This is perhaps at least as important as metrics that track earnings growth but often do not consider overall market declines. With the S&P 500 P/E between 10 and12 times earnings, valuation targets that were provided by analysts based on earnings growth parameters have not been effective in guiding investment recommendations during market tailspins

This leads us to recommend selected net cash positive companies able to weather financial market volatility. Companies that match well with the aforementioned considerations include Qualcomm (QCOM), China Mobile (CHL), Amdocs (DOX) and Chunghwa Telecom (CHT). These entities have significant cash and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansions.

Other investment strategies to consider for telecom include:

* Investing in Dividend-Yielding Companies - Telecom service companies typically provide a disciplined return to investors over time with dividend payouts. Dividend payouts of many of the larger telecom service companies are yielding an average of 4 to 9% as stock prices reached their lower levels. When considering dividend rates, however, we emphasize the need to review company liquidity, debt levels, and cash flow conditions that permit their ability to pay debt obligations * Dollar Cost Averaging - Setting aside funds to spread out industry-specific investments over time represents a sound strategy. This can leverage lower valuations for better investment returns when market values improve over the longer time horizon

WEAKNESSES

Generally, telecom companies that have exhibited significant degrees of valuation decline have had high debt levels and large financial leverage ratios. These companies, while offering recurring cash flow to service their debt obligations, may have difficulties should overall business decline as consumers and businesses become more selective with their spending behavior. Risks that still remain include the following:

* Potential Business Slowdown - Lower overall top-line sales among carriers that would justify a proportional reduction in capital expenditures * Exacerbated Borrowing with Credit and Loans - Over the near-term, telecom companies may be exposed to high debt levels and limited liquidity * Economic Impact Straining Consumer and Business Spending - Telecom companies that would have free cash flow impacted by slowdown in demand. (Sustainable cash flow is required to service debt obligations and may be severely impacted by pessimistic business projections)

Risks are associated with Embarq (EQ), CenturyTel (CTL) and US Cellular (USM) in this group.

David Weissman, CFA is a senior analyst covering the telecommunications industry for Zacks Equity Research.
"DOX" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Kongzhong has a good chance to benefit from the potential growth of the wireless Internet services in China because of its leading position and balanced WVAS portfolio. The company’s bull story, however, is clouded by the unexpected policy changes from Chinese telecom operators and regulation changes from Chinese government. The policy changes from China Mobile (CHL) have resulted in significant decrease of Kongzhong's profitability for two years and will continue to have adverse impact on Kongzhong’s profitability in the future.

Although we are not very optimistic about its prospects due to the tough WVAS operating environment, the company still has enough cash to look for another source of revenue growth in the future. The low P/B ratio of the stock can provide some support for its stock price. Therefore, we are maintaining our Hold recommendation for the stock.

Based on our estimate for fiscal year 2008 earnings per ADS, the stock is trading at 22.3x, which is below that of the industry mean. Based on our estimate for fiscal year 2009 earnings per ADS, the stock is trading at 15.4x, which is far below that of the industry mean. Using a P/E multiple of 16.3x our fiscal year 2008 earnings per ADS estimate of $0.26 yields a target price of $4.25.

Read the full analyst report on KONG

Read the full analyst report on CHL