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Zacks Bull and Bear of the Day Highlights: Companhia de Bebidas das Americas or AmBev, First Advantage Corporation, Unisys, IBM and Computer Sciences Corporation – Press Releases

Zacks Market Commentaries (July 30th, 2009) Writes:

For Immediate Release

Chicago, IL – July 30, 2009 – Zacks Equity Research highlights Companhia de Bebidas das Americas or AmBev (ABV) as the Bull of the Day and First Advantage Corporation (FADV) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Unisys (UIS), IBM (IBM) and Computer Sciences Corporation (CSC).

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 on Companhia de Bebidas das Americas or AmBev (ABV). The company posted good results for the first quarter of 2009 with excellent results in the key Brazilian market.

InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company,

...

AmBev (ABV) – Bull of the Day

Zacks Market Commentaries (July 30th, 2009) Writes:
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, or AmBev (ABV). The company posted good results for the first quarter of 2009 with excellent results in the key Brazilian market.

InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.

Also, a more relaxed monetary policy in Brazil is very positive for the company. Our target price is $79.50 per share.Zacks Investment Research

Zacks Analyst Blog Highlights: Vale do Rio Doce, Cytori Therapeutics, Allegheny Energy Inc., AmBev and The PMI Group, Inc. – Press Releases

Zacks Market Commentaries (May 13th, 2009) Writes:
For Immediate Release

Chicago, IL - May 13, 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: Vale do Rio Doce (VALE), Cytori Therapeutics (CYTX), Allegheny Energy Inc. (AYE), AmBev (ABV) and The PMI Group, Inc. (PMI).

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 Tuesday's Analyst Blog:

VALE Now More China-Dependent

Some days ago, Vale do Rio Doce (VALE) posted weaker-than-expected first quarter 2009 results. The numbers showed a remarkable contrast between the actual results of the company and the great performance the stock has been showing

...

AmBev Drinks In Profits – Analyst Blog

Zacks Market Commentaries (May 11th, 2009) Writes:
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, or AmBev (ABV). The company posted good results for the first quarter of 2009 with excellent results in the key Brazilian market. InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies.Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle. Also, a more relaxed monetary policy in Brazil is very positive for the company.In our opinion, ABV's valuation should be between 20.0x to 21x EPS estimate. Our target price is $67.50 according to our detailed DCF [discounted cash flow] model, representing a P/E between 17x and 17.5x our 2009 earnings estimates -- an acceptable premium over the industry mean, considering the above-average growth ...

Consumer Staples – Zacks Analyst Interviews

Zacks Market Commentaries (April 8th, 2009) Writes:
Stable Demand for Consumer Staples

The stock market has discounted the high probability of a global recession. Prior declines of similar magnitude proceeded the recession in the mid-1970's and the depression in the 1930's. The stock market's decline should be not only a function of magnitude, but also time.

Stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life -- food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in

...

Consumer Staples – Industry Outlook

Zacks Market Commentaries (April 8th, 2009) Writes:
Stable Demand for Consumer Staples

The stock market has discounted the high probability of a global recession. Prior declines of similar magnitude proceeded the recession in the mid-1970's and the depression in the 1930's. The stock market's decline should be not only a function of magnitude, but also time.

Stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life -- food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in

...

AmBev Keeps the Thirst Quenched – Analyst Blog

Zacks Market Commentaries (March 11th, 2009) Writes:
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, better known as AmBev (ABV). The company posted good results for the 4th quarter of 2008 with excellent results in Argentina as well as soft drinks and non-alcoholic, non-carbonated (NANC) beverages in Brazil.InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.Also, a more relaxed monetary policy in Brazil is very positive for the company. Our Buy recommendation accompanies a 6-month target price of $48 per share. Read the full analyst report on "ABV"Zacks Investment Research

Consumer Staples – Zacks Analyst Interviews

Zacks Market Commentaries (February 17th, 2009) Writes:
Stable Demand for Consumer Staples

The stock market is discounting the high probability of a global recession. Prior declines of similar magnitude preceded the recession in the mid-1970's and the Great Depression in the 1930's.

The stock market's decline is not only a function of magnitude, but also time. As the market continues to decline, stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields (above 5%), which should give additional support.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet

...

Caveats for Consumer Staples – Analyst Blog

Zacks Market Commentaries (January 5th, 2009) Writes:
During 2008, the food, beverage and tobacco industries outperformed the S&P 500. Compared to the S&P 500's decline of 37.0%, brewers increased 39.4% (due to the takeover of Anheuser Busch by InBev), tobacco companies declined 22.3%, food companies declined 24.4%, and the soft drink group declined 28.5%. In addition, the personal and household product companies declined 26.5%.The Consumer Staples sector began outperforming in April 2006, discounting the economy's de-acceleration. In general, when stocks in the Consumer Staples sector begin to outperform after a multi-year period of languishing or basing, the stocks tend to continue to outperform for three years.With the end of 2008, Consumer Staples will have outperformed the market on a total return basis for three consecutive years. Historically, the outperformance of Consumer Staples has lasted only three consecutive years, so the positive performance disparity is long-in-the-tooth. In addition, the relative performance has seasonal ...

Consumer Staples – Zacks Analyst Interviews

Zacks Market Commentaries (December 22nd, 2008) Writes:
The stock market is discounting the high probability of a global recession. Prior declines of similar magnitude preceded the recession in the mid-1970's and the depression in the 1930's.

The stock market's decline is not only a function of magnitude, but also time. As the market continues to decline, stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields (above 5%), which should give additional support.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is

...

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