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This Small Oil Producer is Ripe for a Takeover… Here’s How to Profit

Investment U — Fri, 20 Nov 2009 18:18:58 +0000

This Small Oil Producer is Ripe for a Takeover… Here’s How to Profit by Sheena Martin, Contributing Editor Friday, November 20, 2009 Takeovers are big news in the market at the moment. In fact, did you know that takeovers have the biggest one-day gain in stocks for any asset? As my colleague – and takeover expert [...]

Zacks Industry Outlook Highlights: CNOOC Ltd., China Petroleum and Chemical Corporation, or Sinopec, Cameron International, Nabors and Patterson-UTI – Press Releases

Zacks Market Commentaries — Fri, 06 Nov 2009 12:50:54 +0000

For Immediate Release

Chicago, IL – November 6, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Oil & Gas sector, including CNOOC Ltd. (CEO), China Petroleum and Chemical Corporation, or Sinopec (SNP), Cameron International (CAM), Nabors (NBR) and Patterson-UTI (PTEN).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/26953/Oil+%26amp%3B+Gas+Industry.

The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are China’s CNOOC Ltd. (CEO) and China Petroleum and Chemical Corporation, or Sinopec (SNP), both of which remain well-placed to benefit from the country’s growing appetite for energy.

CNOOC enjoys a monopoly on exploration activities in China’s very prospective offshore region in addition to having a growing presence in the country’s natural gas and LNG infrastructure. On the other hand, Sinopec is the second largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. Sinopec’s leverage to the lucrative Chinese market and the recent $7.5 billion Addax acquisition is expected to help sustain its growth momentum.

Within the oilfield services group, we prefer to own companies such as Cameron International (CAM), that derives about two-thirds of its revenue from outside North America, thereby playing an offsetting role to the relatively soft U.S. drilling scene. Cameron recently posted better-than-expected third quarter results and raised its 2009 forecast, as a revival in energy prices led to improved drilling activities.

WEAKNESSES

We continue to feel strongly that industry players in the servicing and drilling ends of the business with substantial natural gas-focused and North America-centric operations should be avoided. A major sub-sector that fits that description is the onshore drillers. While we currently don't have any Underperform rated stocks in this group, we remain skeptical of land drillers like Nabors (NBR) and Patterson-UTI (PTEN), given the extent of excess capacity in the sector that is expected to weigh on dayrates and margins well into next year.

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Zacks Investment Research

Oil & Gas Industry – Industry Outlook

Zacks Market Commentaries — Thu, 05 Nov 2009 21:16:48 +0000

OUTLOOK

The improving economic scene, both here in the U.S. as well as worldwide, is the main driver of the current oil rally that has seen the commodity settling around the $80 per barrel level. But high levels of product inventories (particularly gasoline), along with still higher supplies, will limit any sustained crude gains, in our view. But way too many factors weigh on oil prices, from OPEC decisions and geostrategic tensions to the value of the U.S. dollar and seasonal variables, to definitively size up each one of them for their respective impact on prices.

In its latest release, the Energy Information Administration (EIA) reported a less-than-anticipated increase in crude stockpiles, which rose by 800,000 barrels for the week ending October 23. However, current crude oil stocks, at 339.9 million barrels, still remain 9% above the year-earlier level as well as above the upper limit of the average for this time of the year. As such, crude oil’s near-term fundamentals remain dismal, to say the least.

At current projections, world crude demand for 2009 is expected to be below last year’s level, which itself was below the 2007 level -- the first time since the early 1980’s of two back-to-back negative growth years.

Last month, the Paris-based International Energy Agency (IEA) provided some positive news in this otherwise bleak supply-demand picture. The energy-monitoring body of 28 industrialized countries hiked its global oil demand forecast for both this year and 2010 by 200,000 barrels per day and 350,000 barrels per day, respectively, citing higher-than-expected consumption in Asia and the Americas.

Our view is that oil should be able to hold onto its recent gains and consolidate around current levels, provided this favorable economic view remains in place. But this does not mean that we will not see any short-term pullbacks. On the whole, we expect oil prices in 2010 to be higher than the 2009 levels, but remain significantly below the 2008 peak levels.

Natural Gas

The overall picture remains particularly weak for natural gas, whose inventories have recently hit a new record high of 3.76 trillion cubic feet (Tcf) and is threatening to test the maximum capacity of 3.89 Tcf. Continued strong domestic production (from a number of unconventional natural gas fields) and recessionary consumption (due to the economic downturn), particularly in the industrial sector, are at the core of the commodity's current woes.

Natural gas prices rallied earlier last year, reaching over $13 per million Btu (MMBtu) in July 2008, before trending down to seven-year low level of sub-$2 per MMBtu (we are referring to Henry Hub spot prices here) in September 2009. This, together with tighter access to credit, has prompted producers to scale back drilling operations over the past few quarters.

The supply picture is expected to reverse in the coming months as the lag effect of the sharp drop in domestic drilling activity takes hold. But we do not think this would be enough to offset the record high inventories (storage levels remaining 12% above their five-year average) and steep recession-related cuts in demand. This translates into limited upside for natural gas-weighted companies and related support plays.

OPPORTUNITIES

The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are China’s CNOOC Ltd. (CEO) and China Petroleum and Chemical Corporation, or Sinopec (SNP), both of which remain well-placed to benefit from the country’s growing appetite for energy.

CNOOC enjoys a monopoly on exploration activities in China’s very prospective offshore region in addition to having a growing presence in the country’s natural gas and LNG infrastructure. On the other hand, Sinopec is the second largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. Sinopec’s leverage to the lucrative Chinese market and the recent $7.5 billion Addax acquisition is expected to help sustain its growth momentum.

Within the oilfield services group, we prefer to own companies such as Cameron International (CAM) that derives about two-thirds of its revenue from outside North America, thereby playing an offsetting role to the relatively soft U.S. drilling scene. Cameron recently posted better-than-expected third quarter results and raised its 2009 forecast, as a revival in energy prices led to improved drilling activities.

WEAKNESSES

We continue to feel strongly that industry players in the servicing and drilling ends of the business with substantial natural gas-focused and North America-centric operations should be avoided. A major sub-sector that fits that description is the onshore drillers. While we currently don't have any Underperform rated stocks in this group, we remain skeptical of land drillers like Nabors (NBR) and Patterson-UTI (PTEN), given the extent of excess capacity in the sector that is expected to weigh on dayrates and margins well into next year.

As expected, natural-gas woes in North America have pulled down the oilfield services companies' third-quarter results. In particular, we remain wary of service providers like Smith International Inc. (SII), given its high North American exposure (from the W-H Energy acquisition) in the face of a collapse in the region’s drilling activities. We have Neutral recommendation on the company, whose third quarter results came in significantly below expectations.

Within the E&P group, we see little reason for investors to own shares of Stone Energy Corp. (SGY). We believe that Stone’s asset portfolio, centered on the Gulf Coast/Gulf of Mexico regions and lacking meaningful exposure to the emerging shale plays, is not suited for the current environment of low commodity prices and restricted access to capital.

We also maintain our cautious view on oil refiners, given the higher-than-average gasoline and distillate stocks -- a combination that will continue to hurt their profitability going into 2010. Additionally, the sharply lower refinery utilization (at around 82% of capacity) provides enough evidence that refineries are cutting back on production because the economy is still struggling on the demand side.

Being the largest independent refiner, Valero Energy Corp. (VLO) remains particularly exposed to this unfavorable macro backdrop. We have an Underperform recommendation on the company.
Zacks Investment Research

CNOOC Eyes Statoil GoM Assets – Analyst Blog

Zacks Market Commentaries — Mon, 19 Oct 2009 19:53:34 +0000

CNOOC Ltd. (CEO) expects to sign a deal with Norway’s StatoilHydro ASA (STO) soon to buy stakes in some deepwater exploration blocks in the U.S. Gulf of Mexico (GoM).

StatoilHydro is putting five prospects on the market, out of its more than 400 leases in the U.S. GoM. The company had acquired these assets, with 100% working interest, in 2007 and 2008 lease sale. This deal could mark the introduction of China's foray into the U.S. GoM. The GoM remains one of the most abundant areas of the world for oil discoveries, with billions of barrels of crude believed to be trapped beneath the seabed.

Chinese companies are pursuing assets acquisitions abroad to cope with the country’s increasing demand for oil and gas. But they are facing difficulties in tying up deals partly because the oil-rich countries want greater control over their resources.

We view this deal as a positive for CNOOC following the company’s aborted $18.5 billion bid for California-based Unocal a few years ago. But we are watchful too as CNOOC's decision to take part in the U.S. offshore oil and gas sector may dig up the challenges it had faced in expanding its overseas operations, especially in Africa.

CNOOC’s partnerships with international companies have enabled it to develop the skills and knowledge to conduct independent E&P operations. The company’s increasing overseas exposure is reflected by its recent bid to buy Kosmos Energy’s stake in oil blocks of the Jubilee oil field -- offshore of the West African country of Ghana -- for approximately $4 billion.

We believe that the commencement of major projects, attractive overseas investment initiatives, solid production outlook and satisfactory exploration results act as catalysts for the company’s growth trajectory. Consequently, we maintain our Outperform rating.
Read the full analyst report on "CEO"
Read the full analyst report on "STO"
Zacks Investment Research

Top Chinese Equity Funds – Mutual Fund Commentary

Alex Kolb — Thu, 01 Oct 2009 22:05:57 +0000

Today we are featuring top-performing “Chinese equity" mutual funds that invest most of their assets in equity securities of companies that trade in China or are related to the Chinese economy.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Picks

Dreyfus Greater China A (DPCAX) was incepted in May 1998 and seeks long-term capital appreciation. It may include invest in common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings. It is non-diversified.

The fund primarily invests in stocks of companies that are principally traded in China, Honk Kong or Taiwan, derive at least 50% of their revenues from Greater China, or have at least 50% of their assets in Greater China.

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund’s top holdings.

AIM China A (AACFX) was incepted in March 2006 and seeks long-term growth of capital. It invests in China securities, including securities of companies in the U.S. and other countries with substantial exposure to China.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Shareholders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy") fund.

Some of the fund’s key holdings include PetroChina (PTR - Analyst Report), CNOOC Ltd. (CEO - Analyst Report) and China Life Insurance (LFC - Analyst Report)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank (“Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL - Analyst Report), China Life Insurance Co. Ltd. (LFC - Analyst Report) and PetroChina Co. Ltd. (PTR - Analyst Report).

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

Oil & Gas Industry – Industry Outlook

Zacks Market Commentaries — Tue, 15 Sep 2009 05:00:00 +0000

Crude oil's gains have been even more impressive, given its heavy leverage to the health of the global economy. Our view is that oil should be able to hold onto its recent gains and consolidate around current levels, provided this favorable economic view remains in place.

While we have greater confidence in the staying power of the current oil rally, this does not mean that we will not see any short-term pullbacks. On the whole, we expect oil prices in 2010 to be higher than the 2009 levels, but remain significantly below the 2008 peak levels.

Crude oil's near-term fundamentals remain dismal, to say the least. Inventories in the U.S. are at multi-year highs and remain bloated worldwide. At current projections, global 2009 demand will be below last year's level, which itself was below the 2007 level -- the first time since the early 1980's of two back-to-back negative growth years.

The only positive in this otherwise bleak supply-demand picture is OPEC's success at taking a fair amount of oil off the market. OPEC's successful stewardship provided the commodity with a floor in Dec'08 in the low $30's a barrel range.

While the market has been heavily discounting the commodity's near-term problems, we would expect the day-to-day price movement to largely track the news flow about the health of the global economy.

The oil price outlook has historically been the key determinant of the sector's performance. And given our favorable oil price view, we would strongly advocate for taking an over-weight position in the sector.

OPPORTUNITIES

This outlook has major implications for sub-sector choices within the energy space, though the risk-reward trade off for most of these sub-sectors remains compelling despite recent gains.

The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are Brazil's Petrobras (PBR) and China's Cnooc Ltd. (CEO). Both of these emerging market energy plays offer lucrative growth opportunities going forward. Italy's Eni (E) also remains attractive at current levels.

Petrobras is perhaps the only major oil company worldwide that has discovered substantial oil reserves in recent years. The company's discovery of oil offshore Brazil in the massive Tupi field, expected to be developed in the coming years, has made Brazil a major oil player.

Cnooc Ltd. remains well placed to benefit from China's growing energy appetite. The company enjoys a monopoly on exploration activities in China's very prospective offshore region. Cnooc Ltd. also has a growing presence in China's natural gas and LNG infrastructure.

WEAKNESSES

Despite their strong recent gains, we continue to feel strongly that industry players in the servicing and drilling ends of the business with substantial natural gas-focused and North America-centric operations should be avoided. We also remain wary of refiners, given weak gasoline demand and strengthening oil prices.

A major sub-sector that fits that description is the onshore drillers. We believe that pricing and margins for operators in these two sub-sectors will remain under pressure through 2010, even as the outlook for natural gas price improves. As such, we would avoid Nabors (NBR) and Patterson-UTI (PTEN), two major North American land drillers.

We continue to have a negative view of refiners as well, particularly independent refiners such as Valero (VLO) and Tesoro (TSO), who have no other line of business to support them in the current soft environment. The massive economy-wide job losses are not expected to reverse anytime soon even though the outlook for the overall economy has steadily improved. This, coupled with an unfavorable regulatory landscape, is expected to keep demand under pressure for the foreseeable future. Margins are expected to remain under pressure given the strengthening oil prices (oil is a refiner's primary feedstock).Zacks Investment Research

Oil & Gas Industry – Industry Outlook

Zacks Market Commentaries — Mon, 14 Sep 2009 20:07:24 +0000

The emerging positive narrative of a favorable outlook for the U.S. economy has done wonders for the markets, particularly equities and commodities. The broad equity markets as well as most commodity groups are up smartly from their early-March lows.

Crude oil’s gains have been even more impressive, given its heavy leverage to the health of the global economy. Our view is that oil should be able to hold onto its recent gains and consolidate around current levels, provided this favorable economic view remains in place.

While we have greater confidence in the staying power of the current oil rally, this does not mean that we will not see any short-term pullbacks. On the whole, we expect oil prices in 2010 to be higher than the 2009 levels, but remain significantly below the 2008 peak levels.

Crude oil’s near-term fundamentals remain dismal, to say the least. Inventories in the U.S. are at multi-year highs and remain bloated worldwide. At current projections, global 2009 demand will be below last year’s level, which itself was below the 2007 level -- the first time since the early 1980’s of two back-to-back negative growth years.

The only positive in this otherwise bleak supply-demand picture is OPEC’s success at taking a fair amount of oil off the market. OPEC’s successful stewardship provided the commodity with a floor in Dec’08 in the low $30’s a barrel range.

While the market has been heavily discounting the commodity’s near-term problems, we would expect the day-to-day price movement to largely track the news flow about the health of the global economy.

The oil price outlook has historically been the key determinant of the sector’s performance. And given our favorable oil price view, we would strongly advocate for taking an over-weight position in the sector.

OPPORTUNITIES

This outlook has major implications for sub-sector choices within the energy space, though the risk-reward trade off for most of these sub-sectors remains compelling despite recent gains.

The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are Brazil’s Petrobras (PBR) and China’s Cnooc Ltd. (CEO). Both of these emerging market energy plays offer lucrative growth opportunities going forward. Italy’s Eni (E) also remains attractive at current levels.

Petrobras is perhaps the only major oil company worldwide that has discovered substantial oil reserves in recent years. The company’s discovery of oil offshore Brazil in the massive Tupi field, expected to be developed in the coming years, has made Brazil a major oil player.

Cnooc Ltd. remains well placed to benefit from China’s growing energy appetite. The company enjoys a monopoly on exploration activities in China’s very prospective offshore region. Cnooc Ltd. also has a growing presence in China’s natural gas and LNG infrastructure.

WEAKNESSES

Despite their strong recent gains, we continue to feel strongly that industry players in the servicing and drilling ends of the business with substantial natural gas-focused and North America-centric operations should be avoided. We also remain wary of refiners, given weak gasoline demand and strengthening oil prices.

A major sub-sector that fits that description is the onshore drillers. We believe that pricing and margins for operators in these two sub-sectors will remain under pressure through 2010, even as the outlook for natural gas price improves. As such, we would avoid Nabors (NBR) and Patterson-UTI (PTEN), two major North American land drillers.

We continue to have a negative view of refiners as well, particularly independent refiners such as Valero (VLO) and Tesoro (TSO), who have no other line of business to support them in the current soft environment. The massive economy-wide job losses are not expected to reverse anytime soon even though the outlook for the overall economy has steadily improved. This, coupled with an unfavorable regulatory landscape, is expected to keep demand under pressure for the foreseeable future. Margins are expected to remain under pressure given the strengthening oil prices (oil is a refiner’s primary feedstock).

Zacks Investment Research

Zacks Analyst Blog Highlights: PetroChina Company Ltd., Sinopec, Total SA, CNOOC Ltd. and Vodafone – Press Releases

Zacks Market Commentaries — Wed, 02 Sep 2009 13:55:59 +0000

For Immediate Release

Chicago, IL – September 2, 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: PetroChina Company Ltd. (PTR), Sinopec (SNP), Total SA (TOT), CNOOC Ltd. (CEO) and Vodafone (VOD).

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 Tuesday’s Analyst Blog:

PetroChina Sings 'O Canada'

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group), the Chinese energy giant will purchase a 60% working interest in the Canadian company’s proposed MacKay River and the Dover ventures in northern Alberta. The deal, which awaits certain regulatory approvals, is currently the largest venture by China in Canadian oil sands.

According to an independent third party evaluation, the oil sands that PetroChina plans to exploit are estimated to contain as many as five billion barrels of reserves, about half of Athabasca’s total recoverable resources. Peak production from the two sites is projected to reach 300,000 – 500,000 barrels per day, with first volumes expected in 2014.

The agreement calls for the Chinese behemoth to provide certain financing arrangements for Athabasca, ensuring timely development of the MacKay River and Dover projects. In general, oil sands projects are characterized by long-term capital-intensive investments that require huge up-front expenditures. The total capital cost to develop the MacKay River and the Dover properties are estimated to be in the range of C$15 – C$20 billion.

Oil sands, also known as tar sands, are naturally occurring mixtures of bitumen (a sticky, tar-like form of petroleum), water and sand that are found in large deposits in Athabasca, Peace River, and Cold Lake in Canada 's Alberta province. The oil sands in northern Alberta hold the largest crude reserves outside the Middle East.

We see this transaction as part of PetroChina’s long-term strategic plan to explore one of the world's largest untapped oil regions and supplement its conventional reserves.

In recent times, oil sands have drawn growing interest from Chinese energy groups. Sinopec (SNP) owns a 10% stake in a planned Total SA (TOT) project, while CNOOC Ltd. (CEO) bought a 17% interest in a small privately held oil sands project.

Vodafone Accelerates 3G

Vodafone (VOD) reportedly upgraded its 3G mobile broadband network to offer maximum theoretical download speed of 14.4 megabits per second (Mbps). However, users will get a practical download speed of up to 10.8 Mbps. The upgraded service will be initially available to the customers across London, Birmingham and Liverpool and extended to the rest of UK in due course

The world’s largest revenue-generating wireless carrier launched its 3G services in 13 countries in fiscal 2008. Vodafone’s 3G wireless broadband technology is based on High-Speed Downlink Packet Access (HSDPA) and provides peak data rates of up to 7.2 Mbps. It spent over £14 billion ($28 billion) to obtain 3G wireless licenses in various countries, devoting nearly 40% of capital expenditure to expand its 3G network.

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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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Visit: www.zacks.com

Zacks Investment Research

PetroChina Sings ‘O Canada’ – Analyst Blog

Zacks Market Commentaries — Tue, 01 Sep 2009 19:01:34 +0000

Yesterday, PetroChina Company Ltd. (PTR), the largest integrated oil company in China, agreed to pay C$1.9 billion ($1.7 billion) to acquire a majority stake in two oil sands projects in western Canada.

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group), the Chinese energy giant will purchase a 60% working interest in the Canadian company’s proposed MacKay River and the Dover ventures in northern Alberta. The deal, which awaits certain regulatory approvals, is currently the largest venture by China in Canadian oil sands.

According to an independent third party evaluation, the oil sands that PetroChina plans to exploit are estimated to contain as many as five billion barrels of reserves, about half of Athabasca’s total recoverable resources. Peak production from the two sites is projected to reach 300,000 – 500,000 barrels per day, with first volumes expected in 2014.

The agreement calls for the Chinese behemoth to provide certain financing arrangements for Athabasca, ensuring timely development of the MacKay River and Dover projects. In general, oil sands projects are characterized by long-term capital-intensive investments that require huge up-front expenditures. The total capital cost to develop the MacKay River and the Dover properties are estimated to be in the range of C$15 – C$20 billion.

Oil sands, also known as tar sands, are naturally occurring mixtures of bitumen (a sticky, tar-like form of petroleum), water and sand that are found in large deposits in Athabasca, Peace River, and Cold Lake in Canada 's Alberta province. The oil sands in northern Alberta hold the largest crude reserves outside the Middle East.

We see this transaction as part of PetroChina’s long-term strategic plan to explore one of the world's largest untapped oil regions and supplement its conventional reserves.

In recent times, oil sands have drawn growing interest from Chinese energy groups. Sinopec (SNP) owns a 10% stake in a planned Total SA (TOT) project, while CNOOC Ltd. (CEO) bought a 17% interest in a small privately held oil sands project.

We currently rate PetroChina ADRs as Neutral.
Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Read the full analyst report on "TOT"
Read the full analyst report on "CEO"
Zacks Investment Research

Zacks Bull and Bear of the Day Highlights: CNOOC, Ltd., China Eastern Airlines, Goldman Sachs Group Inc., Morgan Stanley and American Express Company – Press Releases

Zacks Market Commentaries — Tue, 01 Sep 2009 14:00:29 +0000

For Immediate Release

Chicago, IL – September 1, 2009 – Zacks Equity Research highlights CNOOC, Ltd. (CEO) as the Bull of the Day and China Eastern Airlines (CEA) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Goldman Sachs Group Inc. (GS), Morgan Stanley (MS) and American Express Company (AXP).

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:

With favorable prospects for the resumption of China's economic growth and commodity prices off of their lows, CNOOC, Ltd. (CEO) ADSs are expected to maintain their recent impressive performance momentum.

This, coupled with the company's positive production-growth profile, exclusivity in the offshore China region and lucrative LNG investments, account for continued favorable view.

The company's low cost operating model is also a competitive advantage. With approximately ten new projects going on-stream this year, full-year volumes are expected to increase by roughly 15%, with oil and natural gas production in the first half having gone up by 15.2%.

Bear of the Day:

We are maintaining our Underperform rating on China Eastern Airlines (CEA). CEA reported 2009 first half earnings of RMB985 million, well above our estimate, reflecting a number of nonoperating items. These included gains of RMB831 million from an infrastructure levy refund and of RMB2,794 million on the fair value of fuel option contracts, partly offset by a RMB1,875 million decline in net exchange gains.

To shore up its balance sheet, China Eastern also announced the sale of up to RMB1.35 billion new A shares and 490 million new Hong Kong dollar-denominated H shares to parent, China Eastern Air Holding Co.

We continue to believe the fundamental outlook for airline carriers remains weak and a CEA/SAL tie-up will not change this. Both CEA and SAL shares are subject to special treatment, meaning that daily share price movements are limited to 5% on the Shanghai Stock Exchange. Moreover, the shares could be delisted should CEA and SAL continue to sustain losses in 2009.

Top Chinese Equity Funds – Mutual Fund Commentary

Zacks Market Commentaries — Mon, 31 Aug 2009 06:11:54 +0000

Today we are featuring top-performing “Chinese equity" mutual funds that invest most of their assets in equity securities of companies that trade in China or are related to the Chinese economy.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Picks

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund’s top holdings.

Some of the fund’s key holdings include PetroChina (PTR), CNOOC Ltd. (CEO) and China Life Insurance (LFC)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank (“Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL), China Life Insurance Co. Ltd. (LFC) and PetroChina Co. Ltd. (PTR).

Discover Many More Funds

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

CNOOC Kept on Outperform – Analyst Blog

Zacks Market Commentaries — Wed, 26 Aug 2009 15:06:00 +0000

Earlier today, CNOOC Ltd. (CEO) reported results for the six months ended June 30. Net income for the period was 12.4 billion yuan ($1.82 billion), down 55% from 27.54 billion yuan ($3.9 billion) a year earlier. The steep fall in net income was primarily due to significantly lower oil prices despite excellent production performance.

The average realized oil and gas prices for the period were $49.35 per barrel and $3.90 per thousand cubic feet, respectively.

During the first half, the company’s crude oil and natural gas production reached 87.3 million barrels and 106.3 billion cubic feet, respectively. Total net oil and gas production reached 105.8 million barrels-of-oil-equivalent (BOE), up 15.2% year over year. Net oil and gas production from overseas reached 15.0 million BOE, up 38.9% year over year.

CEO’s overseas production was boosted by successful start up of Akpo oilfield and Phase I of OML130 (both in Nigeria) as well as several other deepwater projects. Besides, Tangguh LNG project in Indonesia also came online in early July. In offshore China, the company’s independent oil and gas fields including Panyu 30-1, Bozhong 28-2 South and Qinhuangdao 33-1 have commenced production successfully. We believe that the commencement of these projects will be an important driver for its medium- and long-term growth.

The company’s low cost operating model is also a competitive advantage. The all-in cost was $19.50 per barrel, down 1.4% from last year. However, unlike its bigger competitors such as PetroChina (PTR) and Sinopec (SNP), CNOOC has no significant refining exposure and could not reap the benefits of gaining refining margins driven by fuel price hikes in China, twice in the month of June.

We believe that the commencement of major projects, attractive LNG investments, solid production outlook and satisfactory exploration results (10 new discoveries and 8 successful appraisals in the first half) act as catalysts for the company’s growth trajectory. Consequently, we maintain our Outperform rating.

Read the full analyst report on "CEO"
Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Zacks Investment Research

Mixed Bag for Chinese Oil Majors – Analyst Blog

Zacks Market Commentaries — Thu, 20 Aug 2009 19:07:00 +0000

Prominent Chinese refiners Sinopec (SNP) and PetroChina Company Ltd. (PTR) are set to release solid quarterly earnings on the back of an increase in fuel prices.

China raised gasoline and diesel prices twice in June in order to track international crude prices. The increase in fuel prices gives refiners a guaranteed profit margin if crude price stays below $80 a barrel. Global demand is unlikely to push prices of crude above $80 a barrel this year, so the refiners' margins are assured.

Refiners had been witnessing a weakness in margins due to an increase in crude prices and the government's conservative role in the pricing of refined products, particularly gasoline and diesel. The government caps the prices of refined products to control inflation. These price regulations – which did not allow the company to pass on high refining costs to consumers – are one of the key reasons for refiners' profit slide during the last year.

On the other hand, the outlook for offshore oil producer CNOOC Ltd. (CEO), which generates most of its earnings from exploration and production, remains dull with weak oil prices.

While refiners continue to garner good margins, rising costs and special levies on domestic crude oil sales as well as downstream-centric assets remain our concerns.

Read the full analyst report on "SNP"
Read the full analyst report on "PTR"
Read the full analyst report on "CEO"
Zacks Investment Research

Will This Week’s Earnings Reports Reflect a Recovery or a Relapse for the U.S. Economy?

Contrarian Profits — Mon, 17 Aug 2009 21:00:21 +0000

pSeveral key second-quarter earnings reports could either validate or undercut assertions that the U.S. economy is poised for recovery./p pAfter the Commerce Department reported last week that retail sales fell 0.1% in July from June, and 8.3% year-over-year, retailers will stay in the limelight this week as several high-profile companies report second-quarter earnings.strong Target Corp. (NYSE: a href="http://www.google.com/finance?q=tgt" target="_blank"TGT/a)/strong, strongLimited Brands Inc. (NYSE: a href="http://www.google.com/finance?q=NYSE:LTD" target="_blank"LTD/a)/strong, and strongGap Stores (NYSE: a href="http://www.google.com/finance?q=NYSE%3AGPS" target="_blank"GPS/a)/strong are among the big-name retailers set to report./p pMeanwhile, the strongHewlett-Packard Co’s (NYSE: a href="http://www.google.com/finance?q=hpq" target="_blank"HPQ/a) /strongreport will provide a further glimpse into the world of technology, and strongThe Home Depot Co.’s (NYSE: a href="http://www.google.com/finance?q=NYSE%3AHD" target="_blank"HD/a)/strong results a href="http://www.moneymorning.com/2009/07/30/housing-market-bottom/" target="_blank"will confirm or counter claims that the recent housing rebound is for real/a. On that note, the upcoming economic releases include July housing starts and#8230;/p

Zacks #1 Rank Additions for Tuesday – Zacks Tale of the Tape

Zacks Market Commentaries — Tue, 11 Aug 2009 13:05:22 +0000

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

3Com Corp (COMS)
51job Inc (JOBS)
Actions Semiconductor Co Ltd (ACTS)
Aeropostale Inc (ARO)
Companhia de Bebidas das Americas (ABV)
American Italian Pasta Co (AIPC)
American States Water Co (AWR)
Amkor Technology Inc (AMKR)
Anworth Mortgage Asset Corp (ANH)
Asbury Automotive Group Inc (ABG)
Ashland Inc (ASH)
Associated British Foods Plc (ASBFY)
AudioCodes Ltd (AUDC)
Baidu Inc (BIDU)
Banco Santander SA (STD)
Bank of Montreal (BMO)
Barnes & Noble Inc (BKS)
BG Group Plc (BRGYY)
British American Tobacco (BTI)
Bway Holding Co (BWY)
Cadbury Plc (CBY)
Cambrex Corp (CBM)
Capella Education Co (CPLA)
Capital Bank Corp (CBKN)
Cardtronics Inc (CATM)
Casey's General Stores Inc (CASY)
CDC Corp (CHINA)
Churchill Downs Inc (CHDN)
CNOOC Ltd (CEO)
Computer Sciences Corp (CSC)
CSG Systems International Inc (CSGS)
DealerTrack Holdings Inc (TRAK)
Diageo Plc (DEO)
Digi International Inc (DGII)
Dime Community Bancshares Inc (DCOM)
Dolan Media Co (DM)
E.ON AG (EONGY)
Ecopetrol SA (EC)
Einstein Noah Restaurant Group Inc (BAGL)
F5 Networks Inc (FFIV)
Fairfax Financial Holdings Ltd (FFH)
FBL Financial Group (FFG)
Fidelity National Information Services (FIS)
First Bancorp (FBNC)
FirstService Corp (FSRV)
Fuel Systems Solutions Inc (FSYS)
Fuqi International Inc (FUQI)
Fushi Copperweld Inc (FSIN)
Gentex Corp (GNTX)
GeoEye Inc (GEOY)
Gibraltar Industries Inc (ROCK)
Hanesbrands Inc (HBI)
Harbin Electric Inc (HRBN)
Herley Industries Inc (HRLY)
Hershey Co (HSY)
i2 Technologies Inc (ITWO)
ICICI Bank Ltd (IBN)
IHS Inc (IHS)
InfoSpace Inc (INSP)
International Business Machines Corp (IBM)
Investors Title Co (ITIC)
JDA Software Group Inc. (JDAS)
JMP Group Inc (JMP)
Jones Apparel Group Inc (JNY)
KB Financial Group Inc (KB)
Kohl's Corp (KSS)
L'Oreal SA (LRLCY)
Lafarge SA (LFRGY)
Lifetime Brands Inc (LCUT)
Linn Energy LLC (LINE)
Lumber Liquidators Inc (LL)
Magyar Telekom Plc (MTA)
Mead Johnson Nutrition Co (MJN)
Medical Action Industries (MDCI)
Mednax Inc (MD)
MicroStrategy Inc (MSTR)
Move Inc (MOVE)
MSCI Inc (MXB)
Multi-Fineline Electronix Inc (MFLX)
MV Oil Trust (MVO)
Nestle SA (NSRGY)
NetApp Inc (NTAP)
Novo Nordisk A/S (NVO)
NVR Inc (NVR)
OMNOVA Solutions Inc (OMN)
Orbitz Worldwide Inc (OWW)
Otelco Inc (OTT)
Packaging Corporation of America (PKG)
Partner Communications Company Ltd (PTNR)
Penn Virginia GP Holdings LP (PVG)
Petroleo Brasileiro SA (PBR.A)
PetroChina Company Ltd (PTR)
PNM Resources Inc (PNM)
Pool Corp (POOL)
Power Integrations Inc (POWI)
RAM Energy Resources Inc (RAME)
Raymond James Financial Inc (RJF)
Renasant Corp (RNST)
Reynolds American Inc (RAI)
RINO International Corp (RINO)
Ross Stores Inc (ROST)
Ruth's Hospitality Group Inc (RUTH)
Selective Insurance Group (SIGI)
Solta Medical Inc (SLTM)
Somerset Hills Bancorp (SOMH)
Sonic Foundry Inc (SOFO)
Southwest Bancorp Inc (OKSB)
Spectra Energy Corp (SE)
StatoilHydro ASA (STO)
Steiner Leisure Ltd (STNR)
SunOpta Inc (STKL)
SureWest Communications (SURW)
Symmetricom Inc (SYMM)
Telecom Italia SpA (TI)
Temple-Inland Inc (TIN)
Tesco Plc (TSCDY)
Tessera Technologies Inc (TSRA)
Tim Hortons Inc (THI)
Trailer Bridge Inc (TRBR)
Transatlantic Holdings Inc (TRH)
Transcend Services Inc (TRCR)
TreeHouse Foods Inc (THS)
Unilever Plc (UL)
Vimpel-Communications (VIP)
Virco Mfg Corp (VIRC)
Waddell & Reed Financial Inc (WDR)
Weight Watchers International Inc (WTW)
Westpac Banking Corp (WBK)
Whirlpool Corp (WHR)
World Acceptance Corp (WRLD)

Zacks #1 Rank Additions for Friday – Zacks Tale of the Tape

Zacks Market Commentaries — Fri, 07 Aug 2009 12:05:14 +0000

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Banco de Chile (BCH)
Bancolombia SA (CIB)
Boston Beer Company Inc (SAM)
Cadbury Plc (CBY)
Capital Bank Corp (CBKN)
Cisco Systems Inc (CSCO)
CNOOC Ltd (CEO)
Cognizant Technology Solutions Corp (CTSH)
Diodes Inc (DIOD)
Dorman Products Inc (DORM)
Emergency Medical Services Corp (EMS)
Fairfax Financial Holdings Ltd (FFH)
Gymboree Corp (GYMB)
Hershey Co (HSY)
Hypercom Corp (HYC)
ICICI Bank Ltd (IBN)
Impax Laboratories Inc (IPXL)
Infinity Property and Casualty Corp (IPCC)
International Business Machines Corp (IBM)
Lafarge SA (LFRGY)
Lincoln Educational Services Corp (LINC)
LTC Properties Inc (LTC)
Medical Action Industries (MDCI)
Memsic Inc (MEMS)
Micrus Endovascular Corp (MEND)
Companhia Brasileira De Distribuicao (CBD)
Polo Ralph Lauren Corp (RL)
ProAssurance Corp (PRA)
QC Holdings Inc (QCCO)
Raymond James Financial Inc (RJF)
Renasant Corp (RNST)
Somerset Hills Bancorp (SOMH)
Sonic Foundry Inc (SOFO)
Sun Life Financial Inc (SLF)
Transcend Services Inc (TRCR)
Unilever Plc (UL)
Whole Foods Market Inc (WFMI)

Zacks #1 Rank Additions for Tuesday – Zacks Tale of the Tape

Zacks Market Commentaries — Tue, 04 Aug 2009 12:14:47 +0000

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Amkor Technology Inc (AMKR)
AutoNation Inc (AN)
Avery Dennison Corp (AVY)
Banco Bilbao Vizcaya Argentaria SA (BBV)
Banco Santander SA (STD)
Brush Engineered Material (BW)
Cabela's Inc (CAB)
Capella Education Co (CPLA)
Chipotle Mexican Grill Inc (CMG)
Churchill Downs Inc (CHDN)
CNOOC Ltd (CEO)
CPFL Energia SA (CPL)
Drew Industries Inc (DW)
Dynamics Research Corp (DRCO)
Encore Capital Group Inc (ECPG)
Expedia Inc (EXPE)
F5 Networks Inc (FFIV)
Fairfax Financial Holdings Ltd (FFH)
Flowserve Corp (FLS)
France Telecom SA (FTE)
ICICI Bank Ltd (IBN)
International Business Machines Corp (IBM)
Intuitive Surgical Inc (ISRG)
ITT Corp (ITT)
KMG Chemicals Inc (KMGB)
Lazard Ltd (LAZ)
Lithia Motors Inc (LAD)
NetApp Inc (NTAP)
Nu Horizons Electronics Corp (NUHC)
O'Reilly Automotive Inc (ORLY)
Palomar Medical Technologies Inc (PMTI)
Park-Ohio Holdings Corp (PKOH)
PepsiAmericas Inc (PAS)
Revlon Inc (REV)
Reynolds American Inc (RAI)
Roche Holding Ltd (RHHBY)
Rosetta Stone Inc (RST)
Rovi Corp (ROVI)
Steven Madden Ltd (SHOO)
Sturm Ruger & Co (RGR)
Tyco International Ltd (TYC)
USANA Health Sciences Inc (USNA)
Williams-Sonoma Inc (WSM)

CNOOC Strikes in Bohai Bay – Analyst Blog

Zacks Market Commentaries — Tue, 28 Jul 2009 20:07:36 +0000

On July 27, China’s state-controlled oil company China National Offshore Oil Corp. Ltd., also known as CNOOC Ltd. (CEO), announced the discovery of a new oil and gas find in Jinzhou, in East China’s Bohai Bay.

Drilled to a total depth of 3,720 meters, the discovery well JZ 20-2N-1 was tested to flow at an average rate of 1,900 barrels of oil and 3,450 thousand cubic feet of natural gas per day. The company added that it is currently appraising the oilfield to determine the scale of reserves and its commercial viability.

The latest discovery further demonstrates CNOOC’s effective and well-rewarded exploration activities in the hydrocarbon-rich Bohai Bay. Since 2008, the company has made several notable oil and gas discoveries in the area.

Considering that approximately 42% of CNOOC’s total year-end 2008 proved reserves were located in the Bohai Bay, we believe that the JZ 20-2N-1 discovery, if found economically feasible, will contribute to the company's mid-to-long term reserve growth.

CNOOC Ltd. is one of the three oil companies in China and one of the largest independent oil and gas exploration and production companies of the world. It is China’s dominant producer of offshore crude oil and natural gas and engages in exploration, development, production and sale of crude oil, natural gas and other petroleum products. CNOOC is the only company permitted to conduct exploration and production activities with international oil and gas companies off China’s shore.

Our continued Buy recommendation on CNOOC ADRs reflects the company’s positive production growth profile, exclusivity in the offshore China region, and strong LNG position. It is our preferred play in the Chinese oil and gas market.

Read the full analyst report on "CEO"
Zacks Investment Research

Top Chinese Equity Funds – Mutual Fund Commentary

Zacks Market Commentaries — Tue, 28 Jul 2009 06:28:09 +0000

Today we are featuring top-performing "Chinese equity" mutual funds that invest most of their assets in equity securities of companies that trade in China or are related to the Chinese economy.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Choices

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund?s top holdings.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (?Strong Buy?) fund.

Some of the fund?s key holdings include PetroChina (PTR), CNOOC Ltd. (CEO) and China Life Insurance (LFC)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank ("Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL), China Life Insurance Co. Ltd. (LFC) and PetroChina Co. Ltd. (PTR).

Discover Many More Funds

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

Sinopec Completes New Pipeline – Analyst Blog

Zacks Market Commentaries — Mon, 27 Jul 2009 20:14:28 +0000

China’s state-controlled petroleum refiner China Petroleum and Chemical Corp. – also known as Sinopec (SNP) – recently announced that it has finished construction of a pipeline in North China.

The crude oil pipeline connects the Hejian oil flow station in northern China's Hebei Province to the Shijiazhuang refinery in the province's capital city. It runs through a total length of 147.5 kilometers and will have a peak annual transportation capacity of 8 million tons.

The completion of the pipeline will not only ensure crude oil supply to Sinopec’s Shijiazhuang refinery but also improve the company's resource distribution in the North China area.

We view this operational achievement as a positive for Sinopec as this will help the company’s efforts in meeting the expanding demand from refineries in northern China.

However, rising costs and special levies on domestic crude oil sales – as well as downstream-centric assets – continue to remain our chief concerns. As such, our Hold recommendation for Sinopec stays unchanged at this stage.

With its head office in Beijing, Sinopec is one of the largest petroleum and petrochemical companies in Asia. It is the second-largest crude oil and natural gas producer, besides being the largest refiner and marketer of refined petroleum products in China.

Our preferred play in the Chinese oil and gas market remains CNOOC Ltd. (CEO), due to the company’s robust upstream asset base and attractive growth profile.

Read the full analyst report on "SNP"
Read the full analyst report on "CEO"
Zacks Investment Research

China Tightens Grip on Africa’s Energy Resources with Stake in Offshore Field

Jason Simpkins — Wed, 22 Jul 2009 16:29:20 +0000

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Zacks Bull and Bear of the Day Highlights: ExxonMobil, SurModics, Marathon Oil Corporation, CNOOC Ltd. and Sinopec – Press Releases

Zacks Market Commentaries — Tue, 21 Jul 2009 13:30:51 +0000

For Immediate Release

Chicago, IL – July 21, 2009 – Zacks Equity Research highlights ExxonMobil (XOM) as the Bull of the Day and SurModics (SRDX ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marathon Oil Corporation (MRO), CNOOC Ltd. (CEO) and Sinopec (SNP).

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

Here is a synopsis of all five stocks:

Bull of the Day:

We are maintaining our Buy recommendation for ExxonMobil (XOM) shares ahead of the quarterly results, reflecting its strong operational and financial position on the back of solid business portfolio and prudent investment approach.

The company's capital spending plans remain unaffected by the current commodity-price and credit market turmoil, with annual capital outlays in the $25 billion to $30 billion range over the next five years.

We are, however, keeping our estimates and target price unchanged.

Bear of the Day:

SurModics (SRDX ) provides surface modification and drug delivery technologies to medical device and pharmaceutical companies. Revenue continues to decline in fiscal 2Q09 and outlook for the whole fiscal year is bleak.

Cypher stent sales from J&J declined dramatically again during the April-June quarter and will continue to fall in the coming quarters. This is certainly not good news to SRDX since revenue from Cypher sales makes significant contribution to the company's top line. The current economic environment also has a negative impact on the company's outlook.

Both revenue and EPS will decline in fiscal 2009 and 2010. As such, we maintain our Sell rating for the company with a price target of $15.50.

Chinese Oil Buying into Angola – Analyst Blog

Zacks Market Commentaries — Mon, 20 Jul 2009 19:35:33 +0000

Marathon Sells Offshore Angola Stake

On Friday, July 17, integrated oil major Marathon Oil Corporation (MRO) announced the sale of its 20% interest in a block offshore Angola for $1.3 billion. A subsidiary of Marathon has reached an agreement with Chinese oil companies CNOOC Ltd. (CEO) and Sinopec (SNP). The transaction is expected to close by year-end 2009, subject to government and regulatory approvals.

Per the deal, CNOOC and Sinopec will form a 50-50 venture to buy the stake in the subsea Angolan oilfield located some 150 kilometers off the country's coast in a water depth of 1400 to 2200 meters. Known as ‘Block 32,’ the 5,090-square-kilometer field has already yielded 12 successful exploration wells. Pursuant to the proposed sale, the Houston-based, fifth-largest refiner and marketer of petroleum products in the U.S. would retain a 10% interest in the enterprise of the 30% it originally had.

However, Marathon noted that other partners in Block 32 -- Total SA (TOT) of France with a 30% operated interest, the Angolan state-owned company Sonangol with 20%, a unit of ExxonMobil Corporation (XOM) with 15%, and state-owned Petroleos de Portugal with 5% -- have rights of first refusal over the sale. Any of these companies could purchase the 20% stake at the price being offered by the Chinese consortium.

The African property sale marks the latest in the U.S. energy giant’s asset-repositioning program and is part of the company’s focus to tighten the focus around its upstream portfolio. Through the partial divestment of the Angola interest, Marathon hopes to redeploy capital into other growth regions for the company by unlocking the significant amount of value being created through its exploration success. At the same time, maintaining a 10% interest in Block 32 provides Marathon with exposure to this high quality oil-bearing reservoir.

We continue to rate Marathon shares a Buy due to its attractive inventory of development projects, strong financial health and compelling valuation. The company has extensive upstream operations in eleven countries and its international asset base is one of the most robust in the group.
Read the full analyst report on "MRO"
Read the full analyst report on "CEO"
Read the full analyst report on "SNP"
Read the full analyst report on "TOT"
Read the full analyst report on "XOM"
Zacks Investment Research

Zacks Bull and Bear of the Day Highlights: Energizer Holdings, Inc., Liberty Property, PetroChina, Sinopec Corporation and CNOOC Ltd. – Press Releases

Zacks Market Commentaries — Tue, 14 Jul 2009 13:11:13 +0000

For Immediate Release

Chicago, IL – July 14, 2009 – Zacks Equity Research highlights Energizer Holdings, Inc. (ENR) as the Bull of the Day and Liberty Property (LRY) the Bear of the Day. In addition, Zacks Equity Research provides analysis on PetroChina (PTR), Sinopec Corporation (SNP) and CNOOC Ltd. (CEO).

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:

Energizer Holdings, Inc. (ENR) has generated top-line growth both through organic growth in the razor blade and battery businesses and through the acquisition of Playtex and Hawaiian Tropic.

In addition, integration savings, originally estimated to be $57 million, increased to $70 million. Management is incentivized with annual and two-year bonus plans and a stock incentive option plan.

Historically, management has been successful in qualifying for performance-based awards. The stock is rated a Buy.

Bear of the Day:

Office and industrial markets continue to weaken throughout the US. In the current environment, we do not favor suburban industrial/office companies as rental rates and occupancies will continue their downward spiral. Negative job growth trends will keep shares under pressure.

Liberty Property (LRY) reported 1Q09 FFO of $0.72 per share vs. $0.80 in 1Q08. Overall leasing activity slowed during the quarter. To increase liquidity LRY has been raising capital through asset sales, equity issuance, and property level debt. The company now has plenty of liquidity to address near-term debt maturities.

LRY has revised its 2009 FFO guidance from $3.00 - $3.20 per share to $2.70 - $2.90 due to dilution from new shares. We maintain our Sell rating based primarily on macroeconomic factors.

China Investing in Iran Refineries – Analyst Blog

Zacks Market Commentaries — Mon, 13 Jul 2009 21:01:17 +0000

Early today, Iran has reportedly sought investment from Chinese oil majors to make up the country’s shortfall in refineries. The most notable ones invited are PetroChina (PTR), Sinopec Corporation (SNP) and CNOOC Ltd. (CEO). The National Iranian Oil Company (NIOC) said that these initiatives are part of Iran’s 20-year oil sector revival plan with a total investment of approximately $130 billion.

Despite being the world’s fifth largest crude oil exporter, Iran lacks refining pace and has been importing a significant amount of gasoline to run the country. Iran wants to build these refineries to keep its gasoline import level to a minimum.

The Chinese companies will get an 8-year tax holiday for investments made in Iran’s free trade zones as well as a 5% off for raw materials purchased in Iran. Though these companies already have investments in Iran’s exploration and production businesses, they have yet to enter into the refinery sector.

We view these investment opportunities as positive for the Chinese players as they have been exploring expansion and acquisition opportunities abroad to reduce their exposure to mature domestic areas. These players -- especially PetroChina and Sinopec -- also have a vast experience in the refining business. Together, they hold a total of 59 refineries in China.

While rising costs and high operating expenses remain an issue, a special discount on crude oil purchase in Iran and the 8-year tax holiday will no doubt benefit these Chinese majors. We continue to recommend PTR and SNP as Holds and CEO as a Buy.
Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Read the full analyst report on "CEO"
Zacks Investment Research

PetroChina to Buy Into Osaka – Analyst Blog

Zacks Market Commentaries — Fri, 10 Jul 2009 14:36:38 +0000

PetroChina OKed to Buy Osaka Refinery Stake

Earlier today, PetroChina Company Ltd. (PTR), the largest integrated oil company in China, gained approval from the country’s top economic policy planner -- the National Development and Reform Commission (NDRC) -- to invest in Nippon Oil Corporation’s Osaka refinery.

NDRC said on its website that the agency had given the green light to the Chinese state-controlled energy giant's oil trading subsidiary PetroChina International to acquire a stake in the 115,000-barrels-per-day (Bbl/d) refinery in western Japan.

Nippon Oil and PetroChina’s parent China National Petroleum Corporation (CNPC) finalized the deal earlier in the year to convert the Japanese refiner's wholly owned Osaka refinery into a 51:49 export-oriented joint venture, mainly targeting oil demand in China.

The Osaka deal – which will be PetroChina's second overseas refinery transaction – would allow the company to take charge of all crude supply and product offtake of the refinery.

As per the agreement, PetroChina, Asia's largest producer of oil and gas, will be mainly responsible for marketing oil products from the Osaka refinery in the Asia-Pacific region. The refinery, which includes a 27,000 Bbl/d catalytic cracker and a 17,000 Bbl/d catalytic reformer, has the capacity to export 40,000 Bbl/d of oil products, mainly middle distillates gas oil and jet fuel/kerosene.

We believe that the Osaka refinery stake transaction, which follows PetroChina’s May acquisition of Singapore Petroleum Company’s 50% interest in a 285,000 Bbl/d refinery, will help the Chinese oil behemoth to expand its presence in overseas refining from its core business in oil and gas production. Additionally, it will give PetroChina more leverage and flexibility in oil trading as well as a new platform for the implementation of its international strategy.

However, PetroChina’s product portfolio, rising costs and special levies on domestic crude oil sales -- as well as downstream-centric assets -- remain our chief concerns. As such, our Hold recommendation for the company stays unchanged at this stage.

Our preferred play in the Chinese oil and gas market remains CNOOC Ltd. (CEO) due to the company’s robust upstream asset base and attractive growth profile.
Read the full analyst report on "PTR"
Read the full analyst report on "CEO"
Zacks Investment Research

Top Pacific Equity Funds – Mutual Fund Commentary

Zacks Market Commentaries — Wed, 08 Jul 2009 06:18:34 +0000

Today we are featuring top-performing “Pacific" equity mutual funds, which primarily invest in equity securities of companies based in the Pacific Basin.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Pacific Equity Funds.

3 Solid Picks

Guinness Atkinson Asia Focus (IASMX) seeks long-term capital appreciation by investing at least 80% of its assets in equity securities of Asian companies. The fund is non-diversified.

The fund invests in approximately 35 to 40 stocks of all market capitalization companies, including companies in emerging markets, and does not engage in market timing. It pays dividends and capital gains in December.

HSBC Holdings Plc (HBC), China Mobile Ltd. (CHL) and CNOOC Ltd. (CEO) are among the fund’s top holdings.

Matthews Korea (MAKOX) was founded in January 1995. The fund seeks to achieve its investment objective by investing most of its assets, including borrowings for investment purposes, in the common and preferred stocks of companies located in South Korea.

J. Michael Oh has been the lead manager at the fund since January 2007. The fund topped the total returns of its benchmark index in the last year.

Samsung Electronics, NHN Corp and Yuhan Corp. are the fund’s key holdings. Unit holders have to make a minimum initial investment of $2,500 to enter the fund.

Ivy Pacific Opportunities A (IPOAX) seeks to provide, as a primary goal, long-term capital growth with current income as a secondary objective.

Frederick Jiang, who has been leading the fund since February 2004, has 14 years of industry experience. The fund has an expense ratio of 1.82%.

The fund’s top holdings include NetEase.com Inc. (NTES), China Mobile Ltd. (CHL) and Tata Power.

Discover Many More Funds

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

Sinopec-BASF JV Expanded – Analyst Blog

Zacks Market Commentaries — Tue, 07 Jul 2009 21:38:22 +0000

Sinopec–BASF JV Expansion Approved

Earlier today, China ’s state-controlled petroleum refiner China Petroleum and Chemical Corporation – also known as Sinopec (SNP) – announced that the Chinese Government has approved the feasibility study report on the expansion of its joint venture with German chemical giant BASF AG.

The companies will increase investment in their joint chemical site in China’s Nanjing city by 56% to $1.4 billion. The spending, which was earlier pegged at $900 million, was boosted because of higher costs, appreciating currency and adjustments to the capacity of the project.

The project will use sophisticated technology to produce downstream specialty chemicals serving the construction, electronics, pharmaceutical, automotive and chemical engineering sectors. In particular, it will expand an existing steam cracker's annual capacity by 23% to 740,000 metric tons.

Additionally, the joint venture will build ten new petrochemical plants and expand three existing ones. Start-up of the expanded complex will begin in phases from 2011. Founded in 2000, the facility in Nanjing is one of the largest Sino-foreign petrochemical joint ventures in China . It is operated by BASF-YPC Co (BYC), a 50-50 venture between Sinopec and BASF.

The expansion will broaden the investment terms of the existing $2.9 billion chemical plant in Nanjing, which started commercial production in 2005. It will also help the partners to meet growing demand from various industries. In particular, the expansion of BYC underscores Sinopec’s long-term commitment to China's growing chemical market in the Eastern region.

With its head office in Beijing, Sinopec is one of the largest petroleum and petrochemical companies in Asia. It is the second largest crude oil and natural gas producer, besides being the largest refiner and marketer of refined petroleum products in China.

While we continue to believe that the BASF agreement will help expand margins and broaden Sinopec’s product portfolio, rising costs and special levies on domestic crude oil sales -- as well as downstream-centric assets -- remain our chief concerns. As such, our Hold recommendation for Sinopec stays unchanged at this stage.

Our preferred play in the Chinese oil and gas market remains CNOOC Ltd. (CEO) due to the company’s robust upstream asset base and attractive growth profile.
Read the full analyst report on "SNP"
Read the full analyst report on "CEO"
Zacks Investment Research

China Contemplates Fourth West-East Gas Pipeline – Analyst Blog

Zacks Market Commentaries — Tue, 30 Jun 2009 15:29:50 +0000

Following three West-East natural gas pipelines, China is contemplating the fourth one. The proposal is for a four-lane gas pipeline, which is likely to transport natural gas from the Sichuan and Tarim basins in the West to the large potential markets in East China. The first West-East pipeline was completed and commenced its commercial run in 2004; the second is under construction and expected to be completed by 2011; and the third is already proposed but not yet approved by China's National Development and Reform Commission.

The fourth pipeline is a forward step towards the Chinese Government's efforts to promote natural gas as a substitute for coal in power generation. At present, two-thirds of China's electricity generation comes from coal-fired power plant sources that generate tremendous amounts of greenhouse gases and lead to air pollution. To solve this problem, China is planning to increase its natural gas usage from 3% to 5.3% by 2010.

We believe that the proposal of making the fourth natural gas pipeline will benefit the most prominent Chinese integrated companies such as PetroChina (PTR) and China Petroleum and Chemical Corporation (SNP or Sinopec). Both the companies have a significant exposure in the Sichuan and Tarim basins. While PTR's proved natural gas reserves and production are specifically focused in the Erdos, Tarim, and Sichuan basins, SNP has earmarked a significant portion of its 2009 capital expenditure for the Sichuan-East China Gas project.

Despite these positives, ADRs of both the companies lagged ADRs of CNOOC Ltd. (CEO) in terms of upstream assets and growth profile. This lagging also reflects SNP and PTR's exposure to the heavily regulated downstream sector. As such, our Hold recommendation for PTR and SNP ADRs remain unchanged.

Read the full analyst report on "PTR"
Read the full analyst report on "SNP"
Read the full analyst report on "CEO"
Zacks Investment Research

Zacks #5 Rank Additions for Monday – Zacks Tale of the Tape

Zacks Market Commentaries — Mon, 08 Jun 2009 12:05:48 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Acuity Brands Inc (AYI)
Anthracite Capital Inc (AHR)
Build-A-Bear Workshop Inc (BBW)
C&D Technologies Inc (CHD)
Cavco Industries Inc (CVCO)
China Precision Steel Inc (CPSL)
CNOOC Ltd (CEO)
CoBiz Financial Inc (COBZ)
Corn Products International Inc (CPO)
Cumulus Media Inc (CMLS)
Cybex International Inc (CYBI)
Discover Financial Services (DFS)
Eastman Kodak Co (EK)
Electronics For Imaging Inc (EFII)
Entertainment Properties Trust (EPR)
Erie Indemnity Co (ERIE)
Fastenal Co (FAST)
First Advantage Corp (FADV)
First M & F Corp (FMFC)
FirstService Corp (FSRV)
Gray Television Inc (GTN)
Kaman Corp (KAMN)
KVH Industries Inc (KVHI)
Legacy Bancorp Inc (LEGC)
Mercantile Bank Corp (MBWM)
Meridian Bioscience Inc (VIVO)
MetroCorp Bancshares Inc (MCBI)
Monsanto Co (MON)
Nara Bancorp Inc (NARA)
NOVA Chemicals Corp (NCX)
Orion Energy Systems Inc (OESX)
Pacific Ethanol Inc (PEIX)
Pacific Capital Bancorp (PCBC)
Physicians Formula Holdings Inc (FACE)
Sociedad Quimica y Minera (SQM)
The St. Joe Co (JOE)
Tennessee Commerce Bancorp Inc (TNCC)
THQ Inc (THQI)
Trico Marine Services Inc (TRMA)
UTi Worldwide Inc (UTIW)
Wendy's Arby's Group Inc (WEN)

View the entire Zacks #5 Rank List.

Zacks #5 Rank Additions for Thursday – Zacks Tale of the Tape

Zacks Market Commentaries — Thu, 28 May 2009 15:41:20 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

A-Power Energy Generation Systems Ltd (APWR)
Acergy SA (ACGY)
The Allstate Corp (ALL)
American Commercial Lines Inc (ACLID)
American River Bankshares (AMRB)
BancTrust Financial Group Inc (BTFG)
Blyth Inc (BTH)
Build-A-Bear Workshop Inc (BBW)
China Precision Steel Inc (CPSL)
CNOOC Ltd (CEO)
Dover Saddlery Inc (DOVR)
Einstein Noah Restaurant Group Inc (BAGL)
Embraer - Empr Bras Aeronautica (ERJ)
Ethan Allen Interiors Inc (ETH)
FNB United Corp (FNBN)
Fresh Del Monte Produce Inc (FDP)
Fuel Tech Inc (FTEK)
The Hain Celestial Group Inc (HAIN)
Harry Winston Diamond Corp (HW)
Investment Technology Group (ITG)
Itron Inc (ITRI)
Ixia (XXIA)
Legacy Bancorp Inc (LEGC)
Lennox International Inc (LII)
Liberty Property Trust (LRY)
Live Nation Inc (LYV)
Nara Bancorp Inc (NARA)
Oil States International Inc (OIS)
Orion Energy Systems Inc (OESX)
Palomar Medical Technologies Inc (PMTI)
Pennichuck Corp (PNNW)
Sanmina-SCI Corp (SANM)
Stanley Furniture Company Inc (STLY)
The Talbots Inc (TLB)
Telemig Celular Participacoes SA (TMB)
Tennessee Commerce Bancorp Inc (TNCC)
TriCo Bancshares (TCBK)
Tucows Inc (TCX)
US Home Systems Inc (USHS)
Virage Logic Corp (VIRL)
Washington Trust Bancorp (WASH)

View the entire Zacks #5 Rank List.

Three Big Reasons Oil Prices Will Rally Back Big Time

Contrarian Profits — Tue, 26 May 2009 14:35:44 +0000

pExperts roundly agree that the recession is only a short-term blip in the long-term escalation of oil prices. And this time, there are 1.05 trillion reasons why oil is going to climb well past its peak last year./p pTable of Contents:/p ul liOil Production: Why OPEC’s Keeping a Lid on Production/li liOil Prices: Why Crude Thrives on the Diving Dollar/li liOil Outlook: The Coming Oil Price Shock/li liInvesting in Oil: The Best Companies, Stocks and ETFs/li /ul pOil has staged an impressive rally since dropping below $35 a barrel in mid-February.br / And while there remains a risk that prices will retreat further due to sluggish demand, there are also three very compelling reasons why oil is still a safe long-term bet:/p ul type="disc" liOPEC has made substantial progress in reducing the amount#8230;/li/ul

Top Pacific Equity Funds – Mutual Fund Commentary

Zacks Market Commentaries — Fri, 22 May 2009 21:12:28 +0000

Today we are featuring top-performing "Pacific" equity mutual funds, which primarily invest in equity securities of companies based in the Pacific Basin.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Pacific Equity Funds.

3 Pacific Picks

Guinness Atkinson Asia Focus (IASMX) seeks long-term capital appreciation by investing at least 80% of its assets in equity securities of Asian companies. The fund is non-diversified.

The fund invests in approximately 35 to 40 stocks of all market capitalization companies, including companies in emerging markets and does not engage in market timing. It pays dividends and capital gains in December.

HSBC Holdings Plc (HBC), China Mobile Ltd. (CHL) and CNOOC Ltd. (CEO) are among the fund's top holdings.

Matthews Korea (MAKOX) was incepted in January 1995. The fund seeks to achieve its investment objective by investing most of its assets, including borrowings for investment purposes, in the common and preferred stocks of companies located in South Korea.

J. Michael Oh has been the lead manager at the fund since January 2007. The fund topped the total returns of its benchmark index in the last year.

Samsung Electronics, NHN Corp and Yuhan Corp. are the fund's key holdings. Unit holders have to make a minimum initial investment of $2,500 to enter the fund.

Ivy Pacific Opportunities A (IPOAX) seeks to provide, as a primary goal, long-term capital growth with current income as a secondary objective.

Frederick Jiang, who has been leading the fund since February 2004, has 14 years of industry experience. The fund has an expense ratio of 1.82%.

The fund's top holdings include NetEase.com Inc. (NTES), China Mobile Ltd. (CHL) and Tata Power.

Discover Many More Funds

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

Zacks #5 Rank Additions for Wednesday – Zacks Tale of the Tape

Zacks Market Commentaries — Wed, 06 May 2009 13:18:02 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Aegean Marine Petroleum Network Inc (ANW)
AeroVironment Inc (AVAV)
Albany International Corp (AIN)
BancTrust Financial Group Inc (BTFG)
Build-A-Bear Workshop Inc (BBW)
C&D Technologies Inc (CHP)
CARBO Ceramics Inc (CRR)
Care Investment Trust Inc (CRE)
China Security & Surveillance Tech Inc (CSR)
CNOOC Ltd (CEO)
CoBiz Financial Inc (COBZ)
Coleman Cable Inc (CCIX)
Collective Brands Inc (PSS)
CRH Plc (CRH)
Cumulus Media Inc (CMLS)
Cybex International Inc (CYBI)
Dayton Superior Corp (DSUPQ)
DCP Midstream Partners LP (DPM)
Employers Holdings Inc (EIG)
Entravision Communication (EVC)
Exterran Holdings Inc (EXH)
Foundation Coal Holdings Inc (FCL)
Fresh Del Monte Produce Inc (FDP)
Frontline Ltd (FRO)
G&K Services Inc (GKSR)
Gladstone Capital Corp (GLAD)
Harsco Corp (HSC)
Headwaters Inc (HW)
Heritage Financial Corp (HFWA)
HFF Inc (HF)
Hypercom Corp (HYC)
Ixia (XXIA)
Jones Lang LaSalle Inc (JLL)
K-Sea Transportation Partners LP (KSP)
Kingsway Financial Services Inc (KFS)
Mercantile Bank Corp (MBWM)
MetLife Inc (MET)
Metso Oyj (MXCYY)
Nara Bancorp Inc (NARA)
NetScout Systems Inc (NTCT)
ORBCOMM Inc (ORBC)
Pacific Capital Bancorp (PCBC)
Parkway Properties Inc (PKY)
Penn Virginia GP Holdings LP (PVG)
Perdigao SA (PDA)
Republic Bancorp Inc KY (RBCAA)
RRI Energy Inc (RRI)
Rudolph Technologies Inc (RTEC)
SeaBright Insurance Holdings Inc (SBX)
Solarfun Power Holdings Co Ltd (SOLF)
Summit Financial Group Inc (SMMF)
T-3 Energy Services Inc (TTES)
TiVo Inc (TIVO)
Trailer Bridge Inc (TRBR)
Tween Brands Inc (TWB)
US Concrete Inc (RMIX)
United Parcel Service Inc (UPS)
Vital Images Inc (VTAL)
WESCO International Inc (WCC)
Willbros Group Inc (WG)
TiVo Inc (TIVO)
Trailer Bridge Inc (TRBR)
Tween Brands Inc (TWB)
US Concrete Inc (RMIX)
United Parcel Service Inc (UPS)
Vital Images Inc (VTAL)
WESCO International Inc (WCC)
Willbros Group Inc (WG)

View the entire Zacks #5 Rank List.

Top Chinese Equity Funds – Mutual Fund Commentary

Zacks Market Commentaries — Fri, 17 Apr 2009 12:11:54 +0000

Today we are featuring top-performing "Chinese" equity mutual funds that invest most of their assets in equity securities of companies that trade in China or are related to the Chinese economy.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Great Choices

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund?s top holdings.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (?Strong Buy?) fund.

Some of the fund?s key holdings include PetroChina (PTR), CNOOC Ltd. (CEO) and China Life Insurance (LFC)

Old Mutual Clay Finlay China A (OMNAX) seeks to provide investors with long-term capital appreciation. The fund invests in securities of all market capitalizations, including companies in emerging markets.

Equity securities in which the China Fund may invest include common stocks, preferred stocks, securities convertible into common stocks, depository receipts, rights, and warrants. It is non-diversified.

This Zacks#1 Rank ("Strong Buy") fund has topped its benchmark index in terms of annual returns in the 1-year and 3-year periods. Its key holdings include China Mobile Ltd. (CHL), Industrial And Commercial Bank Of China Ltd. and Huabao International Holdings Ltd.

Discover Many More Funds

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

World Bank Calls China: A “Ray of Hope”

Tony Sagami — Tue, 14 Apr 2009 12:33:41 +0000

The Dow has been on a mini-roll. Therefore, most investors are thrilled to see battered stock portfolios recover even a smidgen of their massive losses. The problem is that these investors aren't paying attention to what's happening elsewhere around the globe. And they may be ...

CNOOC Bolstering Growth – Analyst Blog

Zacks Market Commentaries — Tue, 17 Mar 2009 14:28:04 +0000

CNOOC Ltd. (CEO) is one of the three oil companies in China and one of the largest independent oil and gas exploration and production companies of the world. It is the only company permitted to conduct exploration and production activities with international oil and gas companies off China's shore.

Our continued favorable view of CNOOC Ltd. ADS reflects the company's positive production-growth profile, exclusivity in the offshore China region and lucrative LNG investments. We have, however, lowered our 2008 and 2009 earnings estimates to reflect a lower commodity-price deck and introduced our 2010 earnings per ADS estimate at $7.52.

Despite the negative macro backdrop, CNOOC plans to maintain an active exploration and development program. The company's 2009 capital budget is a 19% year-over-year increase, which is expected to drive a roughly 16% volume growth. Approximately 10 new projects are expected to come onstream this year.
Read the full analyst report on "CEO"
Zacks Investment Research

Why Crude Oil Will Present Investors with a Golden Opportunity in 2009

Contrarian Profits — Tue, 30 Dec 2008 14:36:32 +0000

pOil prices have fallen 70% since hitting a record $147.27 a barrel in July, which means in just five months, crude has given up all the price gains it made in the past four years./p pAfter such a wrenching plunge, many analysts believe the outlook for the “black gold” remains bleak – and in the short term it certainly is. In the long run, however, dwindling supplies, resurgent demand, and a lack of investment will cause crude oil to double, triple, or even quintuple in price over the next few years./p pIn fact, the Paris-based International Energy Agency (IEA) – energy advisor to 28 industrialized nations – says oil will rise to $100 a barrel by 2015, as a result of a#8230;/p

Oil Will Surge Again… Here’s 7 Ways To Profit

Contrarian Profits — Mon, 29 Dec 2008 12:57:53 +0000

pOil prices could fall as low as $20 a barrel in early 2009, says stronga href="http://www.contrarianprofits.com/articles/author/jason-simpkins" class="alinks_links"Jason Simpkins/a/strong. But don#8217;t expect these low prices to last long. Dwindling investment will prompt a longer-term supply crunch, which will send crude to new record highs. Jason gives seven ways to profit from this coming spike./p pThis from a href="http://www.moneymorning.com" class="alinks_links"Money Morning/a:/p blockquotepOil prices have fallen 70% since hitting a record $147.27 a barrel in July, which means in just five months, crude has given up all the price gains it made in the past four years./p pAfter such a wrenching plunge, many analysts believe the outlook for the “black gold” remains bleak – and in the short term it certainly is. In the long run, however, dwindling supplies, resurgent#8230;/p/blockquote

Global Investing Roundups, Tuesday, November 25th, 2008

Contrarian Profits — Tue, 25 Nov 2008 15:41:04 +0000

pExisting Home Sales Down 3.1%; Chile’s 3Q GDP Beat Forecast; SunPower Finishes 18-Megawatt Plant; Cnooc Pushing to Develop More Oil Sites; Alpharma Gets Kinged; Xerox On Track; Oil Jumps 9%; /p ul type="disc" liSales of existing homes fell 3.1% in October, a href="http://www.reuters.com/article/newsOne/idUSTRE4AN45720081124" target="_blank"the lowest drop in four years/a, strongemReuters/em/strong reported. Over the past year, medium home prices also declined 11.3% to $183,300, the biggest percentage drop since the National Association of Realtors began keeping records in 1968./li /ul ul type="disc" liChile’s gross domestic product beat forecasts and grew 4.8% in the third quarter. Domestic demand was strong, as was energy output. “These figures surprised the market and showed that the a href="http://www.bloomberg.com/apps/news?pid=20601086#38;sid=aEmfZ.hOxE1o#38;refer=latin_america" target="_blank"Chilean economy is surprisingly resistant/a to a rapid deceleration,” Juan Pablo Castro, an economist at stronga href="http://finance.google.com/finance?q=SAO:SANB3" target="_blank"Banco Santander SA/a/strong in Santiago, told#8230;/li/ul

Bear Markets Create Bargains – Analyst Blog

Dirk Van Dijk — Tue, 07 Oct 2008 14:55:04 +0000

With the markets in turmoil and sinking like a stone, nobody wants to try and catch a falling knife -- even if the knife is sterling silver. The silver lining in every bear market is that it creates true bargains. You need to have a shopping list prepared and scoop up some of these babies that are being tossed out with the bath water.

I ran a quick screen to try and identify some of these. Here were my criteria: the stock had to be selling for less than 8x this years consensus earnings estimates, and less than 7x next years. It had to have a current market cap of greater than $1 billion. Since I do not trust the books of most financial companies, I eliminated all firms from that sector. I also eliminated all firms that had a negative (4 or 5) score on the Zacks ranking system.

Finally, since we are in the middle of a credit crunch, it had to be able to avoid tapping the credit markets anytime soon. The measure I picked was that it had to have a quick ratio (current assets excluding inventories/current liabilities) of greater than 2.0. The companies I came up with are shown below.

Clearly this is just the start of the investigation of these firms, but this list will give you an idea of where to start. Stocks that are cheap can get even cheaper in these sorts of markets, but over the long run, picking up good companies at bargain prices is the way to succeed in the stock market. After all, the time to buy is when everyone else is in a selling panic. Just make sure that the company you buy will be able to survive the coming bad times in the real economy.

Company	Ticker	FY08 P/E	FY09 P/E	Quick Ratio	Zacks Rank
Gerdau Ameristl	GNA	3.47	3.75	2.06	2
Yanzhou Coal	YZC	3.87	4.95	2.31	2
Overseas Shipho	OSG	3.92	6.4	3.73	2
Aracruz Cel-Adr	ARA	3.99	3.87	3.13	3
Agrium Inc	AGU	4.22	3.17	2.07	2
Nucor Corp	NUE	4.55	4.64	2.19	3
Mirant Corp	MIR	5.01	3.9	6.84	3
Atwood Oceanics	ATW	5.02	4.47	3.29	3
Carpenter Tech	CRS	5.37	4.56	2.33	3
Cnooc Ltd Adr	CEO	5.62	4.68	2.49	3
Ensco Intl Inc	ESV	5.68	5.19	2.24	3
Pride Intl Inc	PDE	5.76	4.98	2.37	3
Textron Inc	TXT	6.19	5.29	2.59	3
Tidewater Inc	TDW	6.4	5.5	2.94	3
Ingersoll Rand	IR	6.94	6.28	2.12	3
Kinetic Concpts	KCI	7.16	6.47	2.64	2
Walter Inds Inc	WLT	7.52	2.28	12.20	3
Giant Interactive	GA	7.58	6.91	5.75	3

Zacks Investment Research

CNOOC Maintains Dominance Offshore – Analyst Blog

Zacks Market Commentaries — Tue, 30 Sep 2008 15:28:51 +0000

CNOOC, Ltd. (CEO) is one of the three oil companies in China and one of the largest independent oil and gas exploration and production companies of the world. It is China's dominant producer of offshore crude oil and natural gas.

We are maintaining our Buy recommendation on CNOOC ADRs following the company's strong first half 2008 operational results. Net income surged 89%, driven by higher oil prices and volume growth. Volumes were up 8.3% in the first half of the year, with full-year growth expected to exceed that level.

The company's capital budget this year is essentially flat from the year-earlier level. Our continued favorable view of CNOOC, Ltd. ADRs reflects the company's positive production-growth profile, exclusivity in the offshore China region, and LNG investments.

Read the full analyst report on CEO

"CEO" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Zacks #1 Rank Additions for Wednesday – Zacks Tale of the Tape

Zacks Market Commentaries — Wed, 17 Sep 2008 07:55:24 +0000

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

AMCOL International Corp (ACO)
Badger Meter Inc (BMI)
Bank of Marin Bancorp (BMRC)
BlueLinx Holdings Inc (BXC)
Boston Properties Inc (BXP)
CNOOC Ltd (CEO)
DRDGOLD Ltd (DROOY)
DXP Enterprises Inc (DXPE)
Energy Conversion Devices Inc (ENER)
First Cash Financial Services Inc (FCFS)
L.B. Foster Co (FSTR)
GameStop Corp (GME)
Green Mountain Coffee Roasters Inc (GMCR)
Hutchison Whampoa Ltd (HUWHY)
Insteel Industries Inc (IIIN)
Kendle International Inc (KNDL)
Kinder Morgan Management LLC (KMR)
Kindred Healthcare Inc (KND)
Packaging Corp of America (PKG)
Pixelworks Inc (PXLW)
Telemig Celular Participacoes SA (TMB)
Trina Solar Ltd (TSL)

View the entire Zacks #1 Rank List.

On-the-ground in Asia …

Larry Edelson — Mon, 08 Sep 2008 13:13:57 +0000

Right now I'm on a tour through Asia and judging by what I’m seeing here, there are very few signs of a slowdown!

I am seeing the same vibrant economies wherever I go. In Macau ... in Hong Kong … in Thailand (despite yet another government coup) … and in the mother of all Asian economies, China.

Given what I'm seeing here in Asia, and the current pullback in oil and gas prices, I think now is a great time to take a look at Asian energy companies. Three of my favorites that I think are in the cat-bird seat to feed China's intensely growing energy needs: China Petroleum & Chemical (SNP), CNOOC Ltd. (CEO), Yanzhou Coal Mining Co. Ltd. (YZC).

Keep in mind the pullback you’re seeing in oil and gas prices is nothing more than a much overdue correction in the market. All of my indicators continue to strongly suggest that we will see $150 oil and then $200 oil early next year.

So don’t let any bearish comments on the energy markets steer you away from the long-term trends ... whether energy or Asia!

Zacks #1 Rank Additions for Monday – Zacks Tale of the Tape

Zacks Market Commentaries — Mon, 08 Sep 2008 08:10:05 +0000

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

AeroCentury Corp (ACY)
Aeropostale Inc (ARO)
Atlas Pipeline Partners LP (APL)
Badger Meter Inc (BMI)
BlueLinx Holdings Inc (BXC)
CARBO Ceramics Inc (CRR)
CNOOC Ltd (CEO)
DXP Enterprises Inc (DXPE)
Enbridge Energy Management LLC (EEQ)
First Cash Financial Services Inc (FCFS)
GameStop Corp (GME)
Hewitt Associates Inc (HEW)
ICON plc (ICLR)
Insight Enterprises Inc (NSIT)
Key Energy Services Inc (KEG)
Kindred Healthcare Inc (KND)
Leggett & Platt Inc (LEG)
LHC Group Inc (LHCG)
Lufkin Industries Inc (LUFK)
MainSource Financial Group Inc (MSFG)
ManTech International Corp (MANT)
Olin Corp (OLN)
Shanda Interactive Entertainment Ltd (SNDA)
Shinhan Financial Group Co Ltd (SHG)
Smith International Inc (SII)
Team Inc (TISI)
Telecomunicacoes de Sao Paulo SA (TSP)
TOTAL SA (TOT)

View the entire Zacks #1 Rank List.

My Three Top Asian Energy Companies …

Larry Edelson — Thu, 04 Sep 2008 07:30:00 +0000

I'm writing this while on a short holiday in Macau, Asia's booming Las Vegas. And let me tell you (again) — judging by what I'm seeing in Macau, there are very few signs of a slowdown in ...

China Huiyuan Quenches Coca-Cola’s Thirst for Foreign Exposure, but Still Faces Regulatory Scrutiny

Money Morning — Wed, 03 Sep 2008 22:43:27 +0000

By Jason Simpkins Associate Editor The Coca-Cola Co. (KO) announced yesterday (Wednesday) that it will buy China Huiyuan Juice Group Ltd. for $2.3 billion (HK$17.9 billion) in an effort to... Money Morning is here to help investors profit handsome...

CNOOC Taps Overseas Markets with Awilco Takeover

Money Morning — Mon, 07 Jul 2008 23:00:37 +0000

By Jason Simpkins Associate Editor After a disappointing string of failed takeovers, CNOOC Ltd. (ADR: CEO) has reignited its foreign expansion initiative with a $2.49 billion buyout of... Money Morning is here to help investors profit handsom...