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Zacks Analyst Blog Highlights: Citigroup Inc., Intuit Inc., ENI S.p.A, BP plc and Royal Dutch Shell – Press Releases

Zacks Market Commentaries — Wed, 25 Nov 2009 13:10:28 +0000

For Immediate Release

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

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Here are highlights from Tuesday’s Analyst Blog:

Citi Expects Strong Economic Growth

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

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

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

Disappointing Forecast at Intuit

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

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

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

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

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

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

ENI Buys Uganda Blocks

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

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

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

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

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

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

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Which of the “Rich Four” Countries Will Default First?

Martin Hutchinson — Wed, 25 Nov 2009 09:00:25 +0000

By Martin Hutchinson Contributing Editor Money Morning Volume in the credit default swap market for rich countries has soared and so have credit spreads, according to a recent Financial Times story, while volume in emerging markets CDS has stagnated. In other words, traders are betting against the governments with high budget deficits, like Britain and the United States, [...]

Citi Expects Strong Economic Growth – Analyst Blog

Zacks Market Commentaries — Tue, 24 Nov 2009 22:37:17 +0000

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

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

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

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

The rankings of global economies are expected to change significantly in the next 5 to 15 years as Asia is predicted to experience rapid industrialization and increased domestic demand while resource-rich regions such as Africa, the Middle East, Latin America, Russia and Brazil see growth.

Citi is a leading global financial services company and has approximately 200 million customer accounts, doing business in more than 140 countries. Hence, the company’s earnings will be benefited with the accuracy of the forecast.
Read the full analyst report on "C"
Zacks Investment Research

XplosiveStocks.com HZHI, HCEI, NVSR (Brought to you by DrStockPick.com)

Dr. Stock Pick — Tue, 24 Nov 2009 22:03:44 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday Nov 24, 2009 DrStockPick.com Stock Report! ************************************************************** www.xplosivestocks.com November 24, 2009 Xplosive Picks Healthy Coffee, Part of a Hot Market! Healthy Coffee International (HCEI.PK) Coffee stocks are a hot commodity right now and HCEI is more than just another coffee company. Their product offering is allowing them to focus on three [...]

JPMorgan Fortifies China Mgmt – Analyst Blog

Zacks Market Commentaries — Tue, 24 Nov 2009 21:08:26 +0000

JPMorgan Chase & Company (JPM) said on Monday that it has appointed Zili Shao as chairman and chief executive of its China operation. It has also appointed Fang Fang as vice-chairman of its Asia Investment Banking operations.

The company has initiated management changes to strengthen its China operations as Chinese companies are now closely focusing on domestic as well as global expansion.

Mr. Shao, currently the head of the Asian practice at the law firm Linklaters, is experienced in some of the biggest financial deals involving China, including the acquisition of Guangdong Development Bank and Industrial and Commercial Bank of China’s purchase of a $5.5 billion stake in Standard Bank of South Africa. Mr. Shao will assume his new responsibilities at JPMorgan’s China business in late January.

Mr. Fang would be responsible for JPMorgan's investment banking strategy and business development efforts involving China and all markets across Asia including Japan, Australia and India.

With their expertise, both Shao and Fang will help JPMorgan develop additional financial products and services for corporate and investor clients in China.

Business diversification has helped JPMorgan to achieve earnings stability during the ongoing downturn of the economy. This diversity may prove to be as much a positive during the recovery as it was during the downturn. Within traditional banking, a diversified product portfolio will sustain better than many other banks, which have exited some of these areas and become excessively dependent on a few products. Also, JPMorgan will be able to leverage its strong deposit base when interest rates finally rise.

However, while we anticipate continued synergies from the company’s diversification and strong capital position, we believe increasing provisions and worsening credit quality will be a drag on future earnings.

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

DrStockPick.com Stock Report! 11/24/09, HCEI, ABMD, SJR, F, PMRA, MHGC

Dr. Stock Pick — Tue, 24 Nov 2009 21:02:47 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Tuesday Nov 24, 2009 DrStockPick.com Stock Report! ************************************************************** Healthy Coffee International, Inc. (Other OTC: HCEI.PK) has established offices in Australia, New Zealand, Japan, Canada, Pilipinas, Sweden, UK, and many more countries to achieve the company’s short term goal of $1 million a month in [...]

Energy Blast – Nov 24, 2009

Robert Amsterdam — Tue, 24 Nov 2009 12:00:34 +0000

Turkey's highest court has reversed the decision to have Atomstroyexport build its first nuclear power plant, due to allegations of unfairly high prices issued by the Russian company, and concerns about energy dependency. Russia will give Belarus a 30-40% discount...

HZHI, CVAT, PWRM, HCEI, PSFT, TAXS, CSRH, AQNM, Stocks at a Glance. DrStockPick.com Report!

Dr. Stock Pick — Mon, 23 Nov 2009 20:26:57 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday November 23, 2009 DrStockPick.com Stock Report! HZHI CVAT, PWRM, HCEI, PSFT, TAXS, CSRH, AQNM ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly established offices [...]

HCEI, Healthy Coffee International is Well Positioned in the Market Place at the Intersection of Three Mega-billion Dollar Industries

Dr. Stock Pick — Mon, 23 Nov 2009 19:25:57 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday Nov 23, 2009 DrStockPick.com Stock Report! ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and other top quality ingredients with the world’s finest coffee beans to create a line of deliciously healthy instant gourmet coffee drinks. Last [...]

CytRx Technical Breakout on Pending News (NASDAQ:CYTR)

Jay Garcilazo — Mon, 23 Nov 2009 18:58:25 +0000

Intuitive Enters Japan – Analyst Blog

Zacks Market Commentaries — Mon, 23 Nov 2009 18:26:04 +0000

Intuitive Surgical, Inc. (ISRG) recently received regulatory approval from the Japanese Ministry of Health, Labor and Welfare (MHLW) to market its da Vinci S System in Japan. The approval thus broadens Intuitive’s geographical presence and is likely to expand its international revenues.

The da Vinci Surgical System is an advanced robot-assisted surgical system that represents a new generation in surgery. The da Vinci Surgical System consists of a surgeon’s console, a patient-side cart, and a high performance vision system. The product line also includes proprietary “wristed" instruments and surgical accessories.

The da Vinci Surgical System translates the surgeon’s natural hand movements on instrument controls at a console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports.

The da Vinci Surgical System is the only technology available commercially that can provide the surgeon with intuitive control, range of motion, fine tissue manipulation capability, and 3-D visualization characteristics of open surgery, while simultaneously allowing the surgeons to work through the small ports of minimally invasive surgery.

This computer-enhanced technology will enable surgeons to improve clinical outcomes while reducing the invasiveness of complex surgical procedures.

Intuitive’s da Vinci, da Vinci S, da Vinci Si, InSite and EndoWrist are the different variants of the da Vinci Surgical System. Intuitive had already placed a total of 1,308 da Vinci systems worldwide at the end of the third quarter. The average price per system sold in the third quarter was $1.4 million.
Read the full analyst report on "ISRG"
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Solar Energy Initiatives, Inc. (SNRY.OB): Grass Roots Solar

QualityStocks — Mon, 23 Nov 2009 15:13:27 +0000

These days, solar is one of the most popular words in the green lexicon. You hear it everywhere, with most of the talk focusing on the increasingly large solar power plants that are now being built. New designs have dropped the price of large scale solar electricity generation by over 80% in the last 25 [...]

Technical Breakout Alert Issued for CytRx (NASDAQ:CYTR)

Michael Vlaicu — Mon, 23 Nov 2009 13:35:02 +0000

Miv Investments Inc. has initiated an independent bullish technical trading alert for 11/23/09 on CytRx Corporation (NASDAQ:CYTR). Shares of the company finished trading during 11/20/09 at $1.14 per share, up 20.18% from the opening bell on heavy buying pressure. As of 11/18/09, the biopharmaceutical company announced plans to initiate an open-label, multinational Phase 2 clinical [...]

SEED, CVAT, HZHI, DrStockPick.com Watch List! for Monday Nov 23, 2009, Origin Agritech Limited, Cavitation Technologies Inc. and Horizon Health International Corp.

Dr. Stock Pick — Sun, 22 Nov 2009 23:30:46 +0000

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CVAT, PWRM, HZHI, HCEI, PSFT, TAXS, CSRH, AQNM, Stocks at a Glance. DrStockPick.com Report!

Dr. Stock Pick — Sun, 22 Nov 2009 19:16:21 +0000

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Exponential Growth, Finite World – Analyst Blog

Dirk Van Dijk — Fri, 20 Nov 2009 21:27:04 +0000

I want to talk about the challenge of exponential growth in a finite world. This is a concept that while on its surface seems easy to get, most people don’t fully grasp it.

Any growth rate that is positive will lead to a doubling in size eventually -- the higher the growth rate, the quicker the doubling. A quick "back of the envelope" method of figuring it out is known as the rule of 70. If you divide a growth rate into 70, it will roughly give you the time for something to double. Thus if something is growing at 2% a year, then it will double in about 35 years, at 5% only 14 years, etc. If you want to be more precise, you can always use your Y^x button on your calculator, but the rule of 70 will do for this discussion.

Clearly, exponential growth is what we are looking for when we invest -- better known as compound interest -- and it is vital to anyone’s financial health that they stay on the right side of it. People who get on the wrong side -- for example, by carrying a credit card balance -- are eventually headed towards financial oblivion. If that is you, then your best investment is probably not one of the stocks or ETFs that I recommend, it is paying down you damm Visa bill.

It is also why I try to watch the downside when I make investment decisions. It is far more important to avoid 50% losses than it is to have a 50% gain. After all, if you had a 50% gain in one year, but in the next year you suffered a 50% loss, at the end of two years that dollar would have turned into just $0.75 -- a 25% loss.

However, far more important to the world is the dark side of exponential growth. Let's start with the obvious one: population growth. The table below comes from Wikipedia, but is based on UN data. Note that from 1750 to 1800, the world population grew from 791 million to 978 million -- an increase of 187 million, or 0.4% per year. From 1850 to 1900, it grew from 1.262 billion to 1.650 billion -- an increase of 388 million or at 0.53% per year.

Thus, even very small growth rates can result in some very large increases extended long enough, and as the base grows, the absolute increase gets larger each year even if the rate of increase stays the same. Now look at what has happened more recently. From 1950 to 1999, world population increased by 3.457 billion, more than doubling from 2.521 billion, an increase of 1.78% per year. Lately we have seen a slowdown in the growth rate; from 1999 to 2008 it was just 1.29% per year, but that has meant an increase of 729 million in just nine years, or 92% of the entire world population in 1750.

Looking forward, the U.N does see a further reduction in the rate of growth, to just 0.68% per year, or almost back down to the growth rate in the very earliest days of the Industrial Revolution. But the base is so much larger, the absolute increase is 2.2 billion, or almost the world population of 1950. The effect is that a long-term graph of world population looks like a picture of a rocket launch. And unless you believe in the Mayan calendar or the equally silly "end times" nonsense, this is going to cause some very big problems (not that the end of the world in 2012 wouldn't be a very big problem on its own).

Now look at where the growth is coming from. The combined populations of North America (Mexico is included in the Latin American numbers, so basically the US and Canada) and Europe are actually expected to fall from the current 1.069 billion to 1.020 billion. All of the growth is coming from Asia, Africa and Latin America.

The only thing that can keep up with exponential growth is something that itself grows exponentially. Fortunately, the one thing that grows exponentially at a very fast rate is computing power, which in turn allows for technological advances. So far, technology has managed to hold off the worst of the problems that one might expect. After all, this analysis is not exactly original. It was first made by Thomas Malthus back before world population hit the 1 billion mark.

However, you can eat potato chips, not computer chips. One of the things that technology has done is level the playing field, so that people in Asia and eventually Africa will have the same shot at success as people in the U.S. and Europe. They can see how we live, and surprise, surprise -- they would prefer to live the way we do, and are increasingly able to do so. As they do, the economic growth opportunities will be huge.

That is why I like the emerging markets story so much. However, given the challenges of trying to research foreign firms who might be best positioned to take advantage of these trends, it probably makes sense to use ETFs such as the I-shares MSCI Emerging Market Fund (EEM) or more country-specific variants like the Claymore China Small Cap ETF (HAO) or the Wisdom Tree India Earnings ETF (EPI).

One of the things that has been absolutely key to our ability to have so much higher living standards today than back in, say, 1850 is that we use a lot more energy.

So let’s take a look at energy consumption per capita (the data I’m using comes from here if you want to investigate further). In 2005, people in North America used the equivalent of 8157.9 kilograms of oil per year (kgoe/y) per person, up from 7942.9 kgoe/y in 2000. Thus while our rate of increase in energy consumption was just 0.54% per year, it was on a high base so the absolute increase was 215 kgoe/y over that time.

Now look at Asia (excluding the Middle East). In 2000, they were using 865.2 kgoe/y, and by 2005 it was up to 1051.5 per year. That is an increase of 3.98% per year, or to go back to the rule of 70, it means that if it keeps up Asia’s energy consumption per capita will double by 2022. Combine that with a population that is expected to grow at 0.6% per year, and Houston, we have a problem.

However, note that the absolute increase in energy use per capita in Asia was just 186 kgoe/y, or just 86.5% of the increase in North America, despite the far higher growth rate. However, if the relative growth rates continue, that will not last. If we extrapolate out the growth rates of 2000 to 2005 then by 2015, Asia’s per capita consumption will grow to 1,553.0 kgoe/y, an increase of 501.5, while the absolute increase in North America will be "only" 451.4 kgoe/y.

Put another way, right now we use 7.76x as much energy per person as in Asia (keep in mind these figures include relatively rich countries like Japan and South Korea, as well as basket-cases like Burma and Bangladesh), and by 2015 that ratio will fall all the way down to 5.54x as much.

Now, the peak year for actual oil discovery in the world was in 1964, and as you pump oil out of the ground it is gone. Once you reach the point where you have pumped half the original oil in a field, it is basically impossible to increase the annual output from that field without causing serious damage that eventually results in that oil being trapped forever. Most of the currently producing fields are past their peak. As the International Energy Agency (IEA) found last year:

"Output from the world's oilfields is declining faster than previously thought, the IEA said in its annual report. Without extra investment to raise production, the natural annual global crude oil depletion rate is 9.1%. The findings suggest the world will struggle to produce enough oil to make up for steep declines in existing fields, such as in the North Sea, Russia and Alaska. The effort will become even more acute as prices fall and investment decisions are delayed. Even with investment, the annual rate of output decline is 6.4." (See here for full story.)

Now the situation is better for natural gas (NG) than it is for oil, but eventually that will run out as well. However, we have much more time thanks to the new shale plays here in the U.S. We need to shift to more usage of NG as a bridge towards the eventual goal of producing most of our energy from renewable sources like wind and solar. But given the tiny fraction of the world’s energy they now represent, we will need many years of very fast growth in them to make a substantial dent in world energy needs.

Natural gas also has the benefit of being located here in North America, rather than in rather unstable and hostile areas of the world, the way oil is.

The U.S. cannot continue to run massive trade deficits with the rest of the world. The trade deficit is the source of our external debt, not the fiscal deficit. Our external debt is now (as of 6/30/09) at $13.454 trillion -- up from just $7.744 trillion five years ago. That is a growth rate of 11.7% per year, and is clearly not sustainable (that might be overstating it since it is a gross number; we do hold some debts of other countries that offsets it in part). Still, even if the net growth rate is half that amount, it is clearly unsustainable, and is one of the reasons the dollar is going to be under long-term pressure.

Putting this all together it seems clear to me that the price of energy must continue to rise over the long term. Companies that are going to be able to increase their production of oil, such as Petrobras (PBR) are going to be exceptionally well positioned.

While natural gas should see a big growth in demand, it is not a perfect substitute for oil. Still, big gas producers like EnCana (ECA) have a very bright long-term future. I would also note that what I am saying about oil also holds true for other commodities. Energy and commodities are going to be the real stores of value and of wealth over the next few decades.
Read the full analyst report on "EEM"
Read the full analyst report on "HAO"
Read the full analyst report on "EPI"
Read the full analyst report on "PBR"
Read the full analyst report on "ECA"
Zacks Investment Research

Cowen’s Stone Maintains Suntech (NYSE:STP) at NEUTRAL on Q3 Earnings Report

Small Cap Pulse — Fri, 20 Nov 2009 21:06:00 +0000

November 20, 2009 ndash; Analyst Comments ndash; Cowenrsquo;s Rob Stone weighed in on Suntechrsquo;s (NYSE:STP) Q3 financial results this morning noting that given the delayed ramp of Pluto and thin-film production, and outstanding GSF A/R exposure, he thinks shares are fairly valued. He maintains a NEUTRAL rating on the stock. Q3 Results Suntech (NYSE:STP) reported Q3 revenues of $473.1 million, compared with revenues of $594.4 million for the same period last year, and $320.9 million in Q209. Gross margins in Q3 were 17.7%, down from 18.5% in Q2, and 21.5% in Q308. Net income was $30,1, or $0.16 per diluted ADS, compared with $42.5 million for the same period last year and $9.6 million in Q208. Highlights for the quarter included hitting 16.53% conversion efficiency. Management increased its FY09 shipment target from 600MW to a range of 640MW to 660MW, and an increase in total cell and module production capacity to 1.4GW by mid-2010, of which 450MW will be Pluto-enabled. Stonersquo;s Key Takeaways middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Shipments to Germany should continue to grow, but account for a smaller percentage, with stronger growth in the rest of Europe (Italy, France, Czech Republic) middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; U.S. distribution and utility scale projects, China and other Asian markets (Australia, Korea and Japan) should also drive growth middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Raising 2009-12E shipments to 640MW, 1.1GW, 1.6GW and 2.2GW including system integration of 37MW, 100MW, 160MW and 230MW middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Mix of systems reduces GM by about 60 basis points in 2009, 80-100 basis points in 2011/12 but GM in 2010 reflect better H1 module ASPs middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Raised EPS to $0.35, $0.65, $0.99 and $1.35 on revenue of $1.6B, $2.1B, $2.7B and $3.5B

DrStockPick.com Stock Report! 11/20/09, HZHI, ISRG, TXN, OMCL, PFBI, BBNK

Dr. Stock Pick — Fri, 20 Nov 2009 19:43:41 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday Nov 20, 2009 DrStockPick.com Stock Report! ************************************************************** Horizon Health International Corp. (Pink Sheets:HZHI) launched a product awareness campaign. The company will be show-casing products through existing e-commerce sites to stimulate sales through online transactions. Through Its US Subsidiary SunCity Ventures, Horizon Health [...]

HCEI, Healthy Coffee International is Looking to Achieve Its Short Term Goal of $1 Million a Month in Sales

Dr. Stock Pick — Fri, 20 Nov 2009 19:36:53 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday Nov 20, 2009 DrStockPick.com Stock Report! ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and other top quality ingredients with the world’s finest coffee beans to create a line of deliciously healthy instant gourmet coffee drinks. Last [...]

Zacks Analyst Blog Highlights: Apple Inc., KT Corp., SK Telecom, China Unicom and American Express Company – Press Releases

Zacks Market Commentaries — Fri, 20 Nov 2009 13:00:31 +0000

For Immediate Release

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

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 Thursday’s Analyst Blog:

South Korea Welcomes iPhone

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

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

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

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

AmEx to Buy Revolution Money

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

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

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

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Zacks Investment Research

PWRM, HZHI, HCEI, CVAT, PSFT, TAXS, CSRH, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 19 Nov 2009 21:45:12 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday November 18, 2009 DrStockPick.com Stock Report! PWRM, HZHI, HCEI, CVAT, PSFT, TAXS, CSRH, AQNM ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly established offices [...]

Grainger Boosted by Acquisitions – Analyst Blog

Zacks Market Commentaries — Thu, 19 Nov 2009 21:10:14 +0000

W.W. Grainger Inc. (GWW) reported a 3% year-over-year drop in October sales. (October this year had one less selling day compared to October 2008.) The company benefited from a 2% positive contribution from the businesses in Japan and India, 1% from the acquisition of Imperial Supplies and 2% from favorable foreign currency translation. Excluding the impact of acquisitions and currency exchange, Grainger’s daily sales in October were down 8% from last year.

The company witnessed a 7% decline in daily sales in the U.S., as demand remained weak across all end markets. These results include sales from Imperial Supplies, which the company acquired in mid-October. Excluding this acquisition, U.S. daily sales were down 8%.

In the Canadian (Acklands-Grainger) division, daily sales were up 5% due to favorable foreign exchange. However, the division’s daily sales were down 7% in local currency due to continued weakness in the Canadian economy.

Sales of Grainger’s other businesses increased 177%, primarily driven by incremental sales from acquisitions in Japan and India, along with sales growth in Mexico, Puerto Rico, China and Panama.

Grainger anticipates November sales to be flat or up modestly from last year’s level. The company expects sales to be in a range of down 2% to up 1% for the fourth quarter. Full-year sales are expected to come in 9% to 10% below the 2008 level. The company forecasts fourth quarter EPS of $1.13-$1.23 and full-year EPS of $5.10-$5.20.

Further, Grainger provide guidance for 2010. The company is forecasts 2010 revenue to be up 4%-9% year-over-year. Earnings for 2010 are anticipated in the range of $5.30 to $5.80 per share. Grainger expects a 3% sales contribution and 5 cents per share of earnings growth from acquisitions made in 2009.

Acquisition

Grainger announced an all-cash acquisition of Alliance Energy Solutions. The company expects the acquisition to be accretive to earnings by approximately 1-2 cents per share in 2010.

Alliance Energy Solutions is a provider of turn-key energy-efficient retrofits. Grainger said that this is its first service-based acquisition in the U.S. With this acquisition, Grainger can provide value added services to complement its deep product line around lighting products. The company did not disclose other terms of the deal.
Read the full analyst report on "GWW"
Zacks Investment Research

HCEI, Healthy Coffee Projects Seven Figure per Month Sales by November 2010

Dr. Stock Pick — Thu, 19 Nov 2009 19:59:24 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday Nov 19, 2009 DrStockPick.com Stock Report! ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and other top quality ingredients with the world’s finest coffee beans to create a line of deliciously healthy instant gourmet coffee drinks. HCEI [...]

Japan’s Shiseido Eyes 20% Growth In China

China Retail News — Thu, 19 Nov 2009 19:30:23 +0000

Japanese cosmetics company Shiseido has announced plans to introduce a new brand into China with the aim of gaining 20% growth in this market. According to Yasuhiko Harada, the chief financial officer of Shiseido, the company made revenues of JPY690 billion last year. Of the total revenue, 10% was from the Chinese market. Shiseido says that due [...]

South Korea Welcomes iPhone – Analyst Blog

Zacks Market Commentaries — Thu, 19 Nov 2009 18:46:09 +0000

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

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

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

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

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

While approval of iPhone in South Korea represents a boon for local mobile users, the presence of a leading foreign brand will intensify competition in the country’s highly penetrated mobile market. Local companies such as LG and Samsung are gearing up for the emerging competition as they are strengthening their handset range by adding more state-of-the-art devices.

Nevertheless, iPhone represents a significant opportunity for the incumbent wireless carriers in South Korea (such as KTC and SKM) to attract high-end customers, which would help them to boost wireless data ARPU (average revenue per user) and customer base.

Read the full analyst report on "AAPL"
Read the full analyst report on "KTC"
Read the full analyst report on "SKM"
Read the full analyst report on "CHU"
Zacks Investment Research

Fed Characterizes Declining Dollar as Nominal

QualityStocks — Thu, 19 Nov 2009 18:26:24 +0000

Future voting members of the Fed’s policy setting committee waved off concerns regarding a declining dollar on Thursday, Nov. 19, suggesting that unless the decline becomes volatile or otherwise erratic, concerns about an inflationary impulse are unwarranted. In commentary that seems to suggest the dollar’s decline may be a counterbalance to a historically undervalued renminbi [...]

NTT Headed for India – Analyst Blog

Zacks Market Commentaries — Thu, 19 Nov 2009 16:40:51 +0000

The severe economic recession and maturity of the Japanese telecom market have compelled Nippon Telegraph & Telephone Corp. (NTT) to look at other geographies. Industry sources say the company has started negotiations with Patni Computer Systems, the sixth largest software services exporter of India , to acquire 66% stake in the latter. Entry into India will unlock the $60 billion IT and ITES (IT enabled services) market to Nippon. In the last reported quarter, Patni generated approximately $166.75 million in revenue and around $33.7 million of net profit.

Nippon, the largest telecom operator in Japan is facing strong competition in the Japanese wireless market and from the potential impact of low-cost, fixed-line services, such as “voice-over-Internet protocol" (VoIP). In order to maintain its leadership position, the company has taken various measures in the domestic telecom market and also decided to capture selected international opportunities to drive long-term growth.

India is not a completely new field for Nippon. The company already has an agreement with HCL Technologies, another major software developer. Recently, NTT DoCoMo (DCM), the wireless subsidiary of Nippon, acquired a 26% stake of Tata Teleservices Ltd. for approximately $2.7 billion. Tata Teleservices is the sixth largest wireless carrier in India with more than 29 million subscribers. The merged entity known as TataDoCoMo has started rolling out its GSM network in select Indian metropolises and also applied for 3G mobile licenses.

Besides India, NTT Communications, the long distance and international phone businesses division of the parent Nippon, has consolidated its existing Atlanta POP (point-of-presence) in the U.S. as the main hub for global IP-VPN network. This facility provides extensive international private networks to various enterprises using Nippon’s broadband backbone.

Recently, NTT Communications acquired Integralis AG, a German firm specializing in IT security services. This will help the company to establish IP-VPN hubs in London and Paris in the European region. The company is also looking for new ventures in the Latin American region where it is expecting an expansion of the broadband market.
Read the full analyst report on "NTT"
Zacks Investment Research

PWRM, PFE, DrStockPick.com Stock Report! Power 3 Medical Products Inc. and Pfizer Inc.

Dr. Stock Pick — Thu, 19 Nov 2009 14:00:16 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday Nov 19, 2009 DrStockPick.com Stock Report! PWRM, PFE ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB PWRM is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug targets. PWRM’s patent-pending [...]

What if They Stop Buying our Debt?

Contrarian Profits — Thu, 19 Nov 2009 11:52:24 +0000

pstrongDoug Hornig, senior prognosticator at a href="http://www.caseyresearch.com/crpmkt/crpSolo.php?id=168#38;ppref=CTP168ED1109C"The Casey Report/a, analyzes the alarming trend of U.S. federal debt and its future implications./strong /p p“I have always depended on the kindness of strangers,” said Blanche DuBois, in the final words of the play A Streetcar Named Desire. Well, don’t we all./p pMany citizens probably still cling to the old saw that public debt doesn’t matter because “we owe it to ourselves.” Wrong. Debt always matters. And as for whom we owe it to, it is a lot of kind (or, at least, not yet unkind) strangers./p pAs recently as 1970, foreign holders of U.S. debt were essentially non-existent. But their slice of our obligation pie has steadily increased, especially over the past two decades, until now foreign#8230;/p

Gap Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Thu, 19 Nov 2009 05:00:00 +0000

Gap Inc. (GPS), which announces third-quarter results after today's closing bell, just declared a quarterly dividend of $0.085 per share, which translates into an industry-leading dividend yield of 1.5%. The company also reported sales growth for the month of October.

Company Description

Gap Inc. is a global specialty retailer that sells clothing, accessories and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands. The company operates stores in the United States, Canada, the United Kingdom, France, Ireland and Japan.

Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from Gap, under Gap's brand names.

Estimates are Bullish Ahead of Earnings Announcement

Analysts polled by Zacks have been upbeat on GPS ahead of today's third-quarter report, pegging earnings at 43 cents per share for the third quarter. Last month, analysts were forecasting 37 cents.

For the current full year, the Zacks Consensus Estimate of $1.49 per share was increased from last month's $1.40.

For the following year, Zacks analysts boosted the earnings forecast from $1.53 per share to $1.62 over the past 30 days.

Rewarding Shareholders with Competitive Income

The company just declared a quarterly dividend of $0.085 per share, which translates into an industry-leading dividend yield of 1.5%.

The dividend is payable on January 27 to shareholders of record at the close of business on January 6.

Stellar Sales

Gap's October net sales of $1.14 billion came in 5% above last year's $1.08 billion. Comparable store sales spiked 4% year-over-year. Zacks Investment Research

Costco Wholesale Corporation – Growth And Income – Zacks Rank Buy

Alex Kolb — Wed, 18 Nov 2009 05:00:00 +0000

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

Company Description

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

Recent Events

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

Solid Sales

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

Competitive Income

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

Bullish Forecasts

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

Zacks Investment Research

Crown Equity Holdings, Inc Makes Two Acquisition Announcements in November: A Dr Stock Pick News Report!

Dr. Stock Pick — Wed, 18 Nov 2009 01:10:52 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday November 17, 2009 DrStockPick.com Stock Report! Crown Equity Holdings - CRWE has been trading on the quiet side lately but it looks like things are starting to heat up! CRWE - Crown Equity Holdings, Inc has recently made some announcements regarding acquisitions that could have far [...]

PWRM, HZHI, HCEI, CVAT, PSFT, CSRH, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 17 Nov 2009 22:44:50 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday November 17, 2009 DrStockPick.com Stock Report! PWRM, HZHI, HCEI, CVAT, PSFT, CSRH, AQNM ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly established offices in [...]

HCEI, HZHI, CVAT, PWRM, PSFT, CSRH, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 16 Nov 2009 21:37:17 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday November 16, 2009 DrStockPick.com Stock Report! HCEI, HZHI, CVAT, PWRM, PSFT, CSRH, AQNM ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly established offices in [...]

Japan’s Economic Growth Accelerates, but Deficit Raises Concerns

Money Morning — Mon, 16 Nov 2009 21:30:31 +0000

By Bob Blandeburgo Associate Editor Money Morning Stimulus measures in Japan helped the world’s second-largest economy grow at its fastest pace in more than two years, but it’s unlikely policymakers will reduce spending despite the nation’s rapidly growing debt. Gross domestic product (GDP) in Japan grew at 4.8% annual rate in the third quarter, surpassing all the [...]

November 16th CEOcast Weekly Newsletter

QualityStocks — Mon, 16 Nov 2009 20:21:30 +0000

Companies featured in this edition of the newsletter: ACTC, CVM, CHIP, ENZ, HYTM, IWEB, ONEZ, PHC, SIHI, SRCO Markets continued their strong performance this week in the absence of any major market driving earnings or economic reports, as the broad based buying that characterized the previous week continued and led to gains in all of the [...]

DrStockPick.com Stock Report! 11/16/09, HCEI, TDC, YRCW, SALM, ARG, HK

Dr. Stock Pick — Mon, 16 Nov 2009 20:02:01 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday November 16, 2009 DrStockPick.com Stock Report! ************************************************************** Healthy Coffee International, Inc. (Pinksheets:HCEI) has included to Mr. Michael Sharp to its team of sales leaders. A native of Florida, Mr. Sharp has over 20 years of combined experience in the network marketing business, representing [...]

Company News for November 16, 2009 – Corporate Summary

Zacks Market Commentaries — Mon, 16 Nov 2009 14:09:34 +0000

• Boeing's (NYSE:BA) new head of its commercial aircraft division, Jim Albaugh, said the long-awaited Dreamliner test will happen by yearend

• Citigroup (NYSE:C) plans to sell Bellsystem 24, a Japanese telemarketing company, to Bain Capital for $1 billion, bringing to $10.8 billion the dollar amount Citi has raised from sales of Japanese assets

• Hedge fund Paulson & Co. reported in a September 30 filing Citigroup (NYSE:C) holdings of 300 million shares, valued at $1.45 billion

• Cisco (NASDAQ:CSCO) raised its bid for Tandberg ASA to $3.4 billion, or about an 11% increase, and extended its offer to December 1

• According to a Bloomberg report, Mitsubishi UFJ has hired JP Morgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) to manage an $11 billion secondary offering, Japan's largest ever. The company plans to sell about 2.5 billion common shares

• Bristol-Myers Squibb (NYSE:BMY) said it plans to spin off its 83% stake in Mead Johnson Nutrition Company

• JP Morgan (NYSE:JPM) said it is offering to purchase the remaining 50% of stockbroker Cazenove, placing a valuation on the firm of $3.32 billion

• General Motors (NYSE:GM) plans to start repaying its Treasury loan early, beginning by yearend with $1 billion quarterly installments to the US and $200 million quarterly to Canada

• General Motors' (NYSE:GM) third quarter revenues bettered estimates at $28 billion versus $22.9 billion expected, rising $4.9 billion from the second quarter. Inventories dropped 158,000 to 424,000

• Lowe's (NYSE:LOW) reported inline third quarter earnings of 24 cents on revenues of $11.38 billion, versus Zacks estimates of $11.27 billion. The company said, "We are beginning to see signs of improved performance in some of the hardest-hit housing markets including California, Florida and areas of the desert Southwest."

Zacks Investment Research

Zacks Analyst Blog Highlights: Apple Inc., Microsoft Corp, Quality Systems Inc., Allscripts-Misys Healthcare Solutions, Inc. and Cerner Corp. – Press Releases

Zacks Market Commentaries — Mon, 16 Nov 2009 13:45:26 +0000

For Immediate Release

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

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

Here are highlights from Friday’s Analyst Blog:

Apple Opens New Store in New York

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

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

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

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

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

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

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

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

Quality Systems Barely Beats

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

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

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

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

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

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

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

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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.

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

About Zacks

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

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

Zacks Investment Research

Zacks Analyst Blog Highlights: GlaxoSmithKline plc, Sanofi-Aventis, Novartis, Baxter International and AstraZeneca – Press Releases

Zacks Market Commentaries — Mon, 16 Nov 2009 13:15:46 +0000

For Immediate Release

Chicago, IL – November 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GlaxoSmithKline plc (GSK), Sanofi-Aventis (SNY), Novartis (NVS), Baxter International (BAX) and AstraZeneca (AZN).

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

Here are highlights from Friday’s Analyst Blog:

Glaxo H1N1 Vaccine Approved

The company has already received an order for 7.6 million doses of its swine flu vaccine from the United States Department of Health and Human Services. This order is a part of the US Government’s intention to secure about 250 million doses to help fight the swine flu pandemic.

The current outbreak of swine flu pandemic can prove to be a big opportunity for vaccine manufacturers. In addition to Glaxo, other major players in this field include Sanofi-Aventis (SNY), Novartis (NVS), Baxter International (BAX) and AstraZeneca (AZN).

In fact, several companies including Sanofi Pasteur, the vaccine division of Sanofi-Aventis, Novartis Vaccines and Diagnostics Limited, the vaccine and diagnostics arm of Novartis, MedImmune LLC, a subsidiary of AstraZeneca and CSL Limited of Australia, have already received approval from the FDA for their swine flu vaccines.

Glaxo intends to start shipping its vaccine in December and expects to provide all the doses by year-end. We expect the company’s vaccine segment to post strong revenues in the fourth quarter of 2009. In addition to strong influenza product sales, the company has made significant progress in expanding its vaccine product portfolio. The approval of cervical cancer vaccine Cervarix in the US and Japan, H1N1 vaccine Pandemrix in Europe, and the H1N1 vaccine in the US should all help drive vaccine segment revenue.

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

About Zacks Equity Research

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

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

About Zacks

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

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

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

Zacks Investment Research

GE, C, BIEL, DrStockPick.com Watch List! for Monday November 16, 2009, General Electric Co., Citigroup, Inc. and BioElectronics Corp., BIEL.PK

Dr. Stock Pick — Sun, 15 Nov 2009 22:06:26 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ DrStockPick.com Watch List! My Picks for Monday November 16, 2009 are: ************************************************************** GE, General Electric Co. GE Aviation, an operating unit of GE, is a world-leading provider of jet engines, components and integrated systems for commercial and military aircraft. GE Aviation has a global service network to support [...]

Prieur’s readings (November 16, 2009)

Prieur du Plessis — Sun, 15 Nov 2009 14:46:44 +0000

This post provides links to a number of interesting articles I have read over the past few days that you may also enjoy. Please also add the links to any other worthwhile articles you would like to share to the comments section.

The week ahead

Prieur du Plessis — Sat, 14 Nov 2009 05:16:00 +0000

The video clips in this post provide a handy summary of the reports expected on the economic, financial and corporate front around the globe during the week ahead.

Apple Opens New Store in New York – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 22:45:25 +0000

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

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

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

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

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

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

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

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

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

We maintain our Outperform rating on Apple, partly because of the remarkable success of the Apple Store.
Read the full analyst report on "AAPL"
Read the full analyst report on "MSFT"
Zacks Investment Research

Glaxo H1N1 Vaccine Approved – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 21:51:07 +0000

GlaxoSmithKline plc (GSK) recently received approval from the U.S. Food and Drug Administration (FDA) for its unadjuvanted influenza A (H1N1) pandemic vaccine. The FDA approved the supplemental biologics license application (sBLA), which was filed as a strain change supplement to Glaxo’s FluLaval seasonal flu vaccine. This means that Glaxo can now market its swine flu vaccine for use in adults to prevent influenza.

The company has already received an order for 7.6 million doses of its swine flu vaccine from the United States Department of Health and Human Services. This order is a part of the US Government’s intention to secure about 250 million doses to help fight the swine flu pandemic.

The current outbreak of swine flu pandemic can prove to be a big opportunity for vaccine manufacturers. In addition to Glaxo, other major players in this field include Sanofi-Aventis (SNY), Novartis (NVS), Baxter International (BAX) and AstraZeneca (AZN).

In fact, several companies including Sanofi Pasteur, the vaccine division of Sanofi-Aventis, Novartis Vaccines and Diagnostics Limited, the vaccine and diagnostics arm of Novartis, MedImmune LLC, a subsidiary of AstraZeneca and CSL Limited of Australia, have already received approval from the FDA for their swine flu vaccines.

Glaxo intends to start shipping its vaccine in December and expects to provide all the doses by year-end. We expect the company’s vaccine segment to post strong revenues in the fourth quarter of 2009. In addition to strong influenza product sales, the company has made significant progress in expanding its vaccine product portfolio. The approval of cervical cancer vaccine Cervarix in the US and Japan, H1N1 vaccine Pandemrix in Europe, and the H1N1 vaccine in the US should all help drive vaccine segment revenue.
Read the full analyst report on "GSK"
Read the full analyst report on "SNY"
Read the full analyst report on "NVS"
Read the full analyst report on "BAX"
Read the full analyst report on "AZN"
Zacks Investment Research

HCEI, CVAT, CSRH, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 13 Nov 2009 20:53:13 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday November 13, 2009 DrStockPick.com Stock Report! ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK ** Healthy Coffee INTL is well Positioned in the Market Place at the Intersection of Three Mega-billion Dollar Industries: Coffee, Wellness and Energy Drinks HCEI is focused on bringing health to the world’s largest and [...]

Nov 13: Trade Decifit Up – Economic Highlights

Zacks Market Commentaries — Fri, 13 Nov 2009 15:06:15 +0000

The Trade Deficit decreased to $36.5 billion in September from $30.8 billion in August. September exports increased by $3.7 billion to $132.0 billion, offset by the increase in imports by $9.3 billion to $168.4 billion. The Commerce Department provided the September figures of the trade balance of the U.S. relative to selected trading partners, in billions of dollars, with surpluses in Hong Kong ($1.9), Australia ($0.9), Singapore ($0.3), and Egypt ($0.3). Deficits were recorded, in billions of dollars, with China ($22.1), OPEC ($7.9),the European Union ($5.5), Mexico ($4.6), Japan ($4.1), Venezuela ($2.0), Nigeria ($1.9), Canada ($1.5), Korea ($0.8), and Taiwan ($0.7).

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Zacks Investment Research

AstraZeneca Beats, Raises – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 14:17:16 +0000

AstraZeneca’s (AZN) third quarter earnings came in at $1.68 per American Depositary Shares (ADS), well above the Zacks Consensus Estimate of $1.36 and $1.32 reported in the year-ago period. Revenues increased 10% at constant exchange rates (CER) to $8.2 billion compared to the same period last year.

The primary reasons for the increase in revenues were strong US sales of Toprol-XL benefiting from generic withdrawal, US sales of its H1N1 vaccine and robust growth in emerging markets.

AstraZeneca recorded strong sales across all geographies. Sales in North America, Emerging Markets and Established Markets increased (at CER) by 13%, 15% and 4%, respectively. The company expects double-digit revenue growth in Emerging Markets for the full year.

Among the product categories, apart from gastrointestinal and oncology, which recorded sales decline of 1% and 10% respectively, all other segments increased their revenues. AstraZeneca recorded more than 26% of its revenues during the quarter from cardiovascular drug sales.

This segment recorded the highest growth at 29%. Revenues for Respiratory and Inflammation, Neuroscience and Infection and others increased by 13%, 11% and 22%, respectively.

AstraZeneca’s gross margin improved to 84.9% from 81.3% in the year-ago period due to a reduction in cost of sales. Operating profit increased 29% to $3.6 billion due to improved gross margin and lower R&D expenditure, partially offset by higher SG&A expenses and less other income.

During the quarter, AstraZeneca received significant regulatory approval and entered into new licensing collaborations. These include:

·         Approval from the US Food and Drug Administration (FDA) for Onglyza (saxagliptin) to be used for the treatment of type 2 diabetes mellitus in adults. In addition, the drug received marketing authorization from the European Commission.

·         Approval from the US FDA for the H1N1 vaccine.

·         Collaboration agreement with Forest Laboratories (FRX) for the development and commercialization of ceftaroline in all major markets other than the U.S., Canada and Japan. The drug is in a late stage of development for the treatment of complicated skin and skin structure infections (cSSSI) and community-acquired bacterial pneumonia (CABP). While Forest expects to file a New Drug Application (NDA) in the US by the end of 2009, AstraZeneca expects to file a Marketing Authorization Application (MAA) in Europe by the end of 2010.

·         An exclusive worldwide license agreement with Nektar Therapeutics (NKTR) for two drug candidates; NKTR-118, a late stage investigational product for the treatment of opioid-induced constipation and NKTR-119, an early stage compound intended to deliver products for the treatment of pain without constipation as its side effect.

·         AstraZeneca submitted a MAA for Brilinta and expects to submit the NDA by the year end.

While all these were positive developments, AstraZeneca has had its share of failures too. The company had to withdraw the regulatory submissions for the use of Zactima (vandetanib) 100mg in combination with chemotherapy in patients with advanced non-small cell lung cancer (NSCLC) from both the US and the EU. The submission was withdrawn due to lack of positive data.

Based on strong quarterly results, AstraZeneca provided guidance for the full year of 2009. The company expects its earnings per ADS in the range of $6.20-$6.40.
Read the full analyst report on "AZN"
Read the full analyst report on "FRX"
Read the full analyst report on "NKTR"
Zacks Investment Research

Zacks Industry Outlook Highlights: ArcelorMittal, Steel Dynamics Inc., AK Steel Holding Corporation, United States Steel Corporation and Nucor Corporation – Press Releases

Zacks Market Commentaries — Fri, 13 Nov 2009 12:55:47 +0000

For Immediate Release

Chicago, IL – November 13, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Steel Industry, including ArcelorMittal (MT), Steel Dynamics Inc. (STLD), AK Steel Holding Corporation (AKS), United States Steel Corporation (X) and Nucor Corporation (NUE).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/27253/Steel+Industry.

ArcelorMittal (MT) is the world’s largest steel company with steel production of 103.3 million tons in 2008. Other major players in the industry are Steel Dynamics Inc. (STLD), AK Steel Holding Corporation (AKS), United States Steel Corporation (X) and Nucor Corporation (NUE).

The Asia-Pacific region, especially China and India, is witnessing higher production and consumption of steel. This is due to the per capita consumption reaching up to U.S./European levels, which could, theoretically at least, double steel demand in the longer-term. China has set up the largest steel industries in the world, driven by increasing demand for rapid urbanization and large infrastructure projects. The country accounted for nearly 50% of monthly total world production in August 2009.

China’s share is larger than the combined production of the U.S., the European Union (EU), Russia and Japan, which have historically been the largest producers of steel. In 2001, China's annual share of world production stood at 17%, while the EU accounted for the largest share at 18%. In eight years, China's share of world production has almost tripled, while other producers have seen their shares decrease. Ranked behind China are Japan and the U.S.

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Zacks Investment Research

Zacks Analyst Blog Highlights: Hewlett Packard Company, 3Com Corporation, Cisco Systems Inc., Wal-Mart Stores Inc. and GlaxoSmithKline, plc – Press Releases

Zacks Market Commentaries — Fri, 13 Nov 2009 12:30:00 +0000

For Immediate Release

Chicago, IL – November 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: Hewlett Packard Company (HPQ), 3Com Corporation (COMS), Cisco Systems Inc. (CSCO), Wal-Mart Stores Inc. (WMT) and GlaxoSmithKline, plc (GSK).

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Here are highlights from Thursday’s Analyst Blog:

Hewlett-Packard to Acquire 3Com

Hewlett Packard Company (HPQ) is planning to take over networking gear maker 3Com Corporation (COMS). The acquisition, valued at $2.7 billion, enables HP to challenge networking leader Cisco Systems Inc. (CSCO) on its own turf.

HP’s current networking products, sold under the ProCurve brand, generate around $1 billion in annual sales (less than 1% of the company’s total revenue). The product line lacks competitive data center switches, which makes it hard to take market share from well-entrenched Cisco.

3Com's expertise is in networking products for data centers, which supports HP's ProCurve networking equipment. Although the company has seen better times, it has been beefing up its portfolio by utilizing its design capabilities in low-cost China. The company is, therefore, in a position to compete aggressively on price. 3Com’s challenges include its poor brand value in American and European markets and its weak position in these geographies.

The HP-3Com combination is therefore an ideal fit, in our opinion. If the deal closes, HP will acquire a new capability overnight, strengthen its position in China and grow at its competitor’s expense. 3Com will benefit from HP’s superior brand value and find a broader market for its new products.

Wal-Mart Sales Up in U.S., Europe

Wal-Mart Stores Inc. (WMT) reported strong fiscal third-quarter earnings of 84 cents per share, which surpassed the Zacks Consensus Estimate of 81 cents. Earnings grew 9.1% year over year from 77 cents recorded in the year-ago quarter, and exceeded management’s guidance of 78 cents to 82 cents per share.

Wal-Mart’s net sales recorded a growth of 1.1% year over year to $98.7 billion, as a 1.2% expansion in Wal-Mart's U.S. segment coupled with a 1.6% increase in the International segment was partially offset by 0.7% decline in the Sam’s Club segment. The growth in International sales was driven by robust performance in the U.K., Mexico and Brazil, but was limited by unfavorable currency fluctuations.

The retailing behemoth, widely considered as a barometer of the country’s economy, said U.S. same-store sales dipped 0.5% year-over-year, while that for Sam’s Club rose by 0.1%.

Glaxo Reports Higher Revenues

Third quarter 2009 revenue increased 3%, with growth being driven by strong performances in emerging markets (up 25%), Japan (up 19%) and Consumer Healthcare (up 8%). We were pleased to see growth in Consumer Healthcare revenue despite the global slowdown.

Meanwhile, US sales continued to be impacted by generic competition with revenue declining 12%. Sales of products like Imigran (down 74%), Lamictal (down 21%) and Requip (down 30%) and Wellbutrin XL (down 81%) kept declining.

Pharmaceutical product revenue increased 2% with sales being driven by Advair/Seretide (up 5%) and Relenza. Relenza benefited from continued orders from several governments for stockpiling.

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Zacks Investment Research

Richard Russell: Six reasons to invest in gold

Prieur du Plessis — Fri, 13 Nov 2009 07:38:54 +0000

This post features excerpts from Richard Russell's latest Dow Theory Letters, arguing the case for gold bullion.

Albert Edwards still uber bearish, calls for new lows in 2010

Prieur du Plessis — Fri, 13 Nov 2009 07:35:43 +0000

Albert Edwards has a large following among Investment Postcards readers. This post provides an update on the latest views of our favorite bear.

Economic prospects for 2010 and beyond

Prieur du Plessis — Fri, 13 Nov 2009 07:30:18 +0000

By Cees Bruggemans, Chief Economist FNB. After a great fall (2008), success in arresting the fall and stabilizing the economy on a low level of capacity utilization (2009), growth prospects tend to be very promising as slack resources as well as new inputs will be available to be put to work. Demand needs to grow in [...]

Debt dynamics will hold back economy

Prieur du Plessis — Fri, 13 Nov 2009 07:29:37 +0000

This post is a guest contribution by Comstock Partners, the highly regarded investment manager run by Charles Minter, arguing that government debt could double while private debt could be cut in half.

Steel Industry – Industry Outlook

Zacks Market Commentaries — Fri, 13 Nov 2009 05:00:00 +0000

Steel Output Mounting

The Steel industry, which consists of companies engaged in the extraction of iron ore and coke coal for the processing of iron and steel, has the major chunk of sales concentrated with a few producers. The industry includes metal ore exploration and mining services, iron and steel foundries for smelting, rolling, forging, spinning, recycling, stamping, polishing and plating of iron and steel products such as pipes, tubes, wire, spring, rolls and bars.

The largest drivers of steel consumption have historically been the automotive and construction markets, which make up more than 50% of total steel consumption. Other steel consuming industries include appliances, converters, containers, tin, energy, electrical equipment, agricultural, domestic and commercial equipment and industrial machinery. Large automakers such as General Motors, Ford Motor Company ([url=http://www.zacks.com/stock/quote/f]F[/url]), Toyota Motor Corporation ([url=http://www.zacks.com/stock/quote/tm]TM[/url]) and Honda Motor Company ([url=http://www.zacks.com/stock/quote/hmc]HMC[/url]) depend upon the steel industry.

ArcelorMittal ([url=http://www.zacks.com/stock/quote/mt]MT[/url]) is the world’s largest steel company with steel production of 103.3 million tons in 2008. Other major players in the industry are POSCO ([url=http://www.zacks.com/stock/quote/pkx]PKX[/url]), Steel Dynamics Inc. ([url=http://www.zacks.com/stock/quote/stld]STLD[/url]), AK Steel Holding Corporation ([url=http://www.zacks.com/stock/quote/aks]AKS[/url]), United States Steel Corporation ([url=http://www.zacks.com/stock/quote/x]X[/url]) and Nucor Corporation ([url=http://www.zacks.com/stock/quote/nue]NUE[/url]).

The Asia-Pacific region, especially China and India, is witnessing higher production and consumption of steel. This is due to the per capita consumption reaching up to U.S./European levels, which could, theoretically at least, double steel demand in the longer-term. China has set up the largest steel industries in the world, driven by increasing demand for rapid urbanization and large infrastructure projects. The country accounted for nearly 50% of monthly total world production in August 2009.

China’s share is larger than the combined production of the U.S., the European Union (EU), Russia and Japan, which have historically been the largest producers of steel. In 2001, China's annual share of world production stood at 17%, while the EU accounted for the largest share at 18%. In eight years, China's share of world production has almost tripled, while other producers have seen their shares decrease. Ranked behind China are Japan and the U.S.

According to the World Steel Association, global steel output had increased to 107 million tons in the month of September 2009, down marginally (0.6%) from the same month of the previous year. Month-on-month, steel output improved slightly from 106.5 million tons. World crude steel production has continued to show a steady increase since April 2009. Steel production had reached its highest level in July this year on the back of a moderate rise in demand and the resumption of idled facilities by producers. The total output of 103.9 million tons was an improvement of 4% from 99.8 million tons produced in October, but down 11.1% year over year.

All major steel producing countries -- China, Japan, Germany, the U.S., Brazil, Turkey, Russia and the Ukraine -- have shown peak monthly figures so far this year. Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, edged up by 2.0% in September, while monthly steel output in Asia increased 15% to over 60 million tons. Of this, production in China climbed 28.7% to 39.4 million tons. However, global steel production was down 32.3% in North America while production in Europe saw a drop of 23.7%.

According to the data released by the International Trade Administration, steel prices increased across almost all product groups in September 2009 from August 2009. Hot-rolled sheet prices increased 12.6% to $535 per ton from $475 per ton. Cold-rolled sheet increased 10.04% to $625 per from $568 per ton. Stainless sheet prices increased 2.7% to $2,334 per ton.

Steel prices across all product groups have fallen significantly from the previous year despite recent price increases, with the price of hot-rolled sheet showing a 54.6% decrease and cold-rolled sheet a 41.3% decrease from September 2008.

In 2007, China’s steel industry revealed signs of consolidation in a market that was previously rather fragmented and in need of mergers and acquisitions (M&A). Despite the current slowdown in consolidation within the global steel industry, M&A activity remains a critically important business strategy for companies. While the economic downturn is a significant factor in short-term decisions regarding M&A activity, steel companies expect to make acquisitions over the next three years.

OPPORTUNITIES

We expect global steel demand to improve in the long term with the recovery of the user industries. China is expected to remain the largest consumer of steel going forward. World Steel is forecasting an 8.6% year over year decline in steel production, better than the previous forecast of a 14.1% decline, driven by a strong growth in Chinese steel demand. With signs of a recovery across the world since the beginning of the second half of 2009, the association is anticipating global steel demand in 2010 to grow by 9.2% to 1,206 million tons, which is similar to the level in 2008.

With steel demand picking up in the last couple of months, steel producers are restarting facilities. U.S. Steel Corp. is restarting its blast furnace at its Hamilton, Ontario plant after a nine-month shutdown. The company had closed its Hamilton blast furnace in November 2008. It had suspended the remaining operations at Hamilton and the Nanticoke operation in March 2009 due to a drop in demand. Both the facilities were running at less than half their capacity.

Net losses for Nucor Corporation, the largest recycler of steel scrap in the U.S., narrowed to $29.5 million, or 10 cents per share, for the third quarter of 2009. The result was more positive than the Zacks Consensus Estimate of a loss of 14 cents. Long-term contracts, cost reduction efforts and a dominant acquisition strategy inspire optimism about the company’s performance in the coming quarters.

The third largest steel maker in the U.S., Steel Dynamics Inc. reported net income of $69 million -- 30 cents per share -- for the third quarter of 2009, after reporting losses for three consecutive quarters. The earnings, which were driven by cost reduction through higher production and shipping volumes at the Flat Roll Division and better-than-expected performance in the Metals Recycling segment, were higher than the Zacks Consensus Estimate of 23 cents. However, on a year-over-year basis, earnings were down 69%.

WEAKNESSES

The global steel industry is cyclical, highly competitive and has historically been characterized by overcapacity. Production cuts of up to 35% are occurring to keep operating rates in the low-80s and keep the market balanced. The U.S. domestic production capacity utilization has fallen dramatically since August 2008. Capacity utilization peaked in February 2008 at a level of 91.6%. In May 2009, estimated capacity utilization was 44.3%, less than half of its level six months ago. Capacity utilization reached its lowest point, 40.9%, in December 2008, though it has increased again since May 2009.

Overcapacity in the global steel industry could increase the level of steel imports and result in downward pressure on steel prices. Overcapacity in China has the potential to result in a further increase in imports of low-priced, unfairly traded steel and steel products to the U.S. In recent years, capacity growth in China has significantly exceeded the growth in Chinese market demand. A continuation of this unbalanced growth trend or a significant decrease in China’s rate of economic expansion could result in China increasing steel exports.

Key steel consuming industries such as auto, shipbuilding and construction had been experiencing weak demand in the last quarters, forcing global steel makers to slacken production levels. U.S. Steel, the eighth largest steel producer in the world, the largest integrated steel producer headquartered in North America, and one of the largest integrated flat-rolled producers in Central Europe, slashed production by almost 62% during the second quarter of 2009, while Korean steel maker POSCO cut production by about 15% in December last year. This was the first time in its history that POSCO was forced to take such a measure, proof of the very bad operating environment.

The current low demand from the automotive and residential sectors and rising labor costs are affecting producers in the steel industry. Weak demand and significantly lower operating rates have forced producers to shut down facilities. The slowdown in the U.S./Europe/Japanese economies remains a negative issue facing steel producers. The automotive market has yet to recover fully. Steel shipments are off at a double-digit rate.

As a whole, the steel industry posted weak results in the third quarter of 2009. U.S. Steel Corporation recorded its third sequential loss -- $3.03 billion, or $2.11 per share -- in the third quarter of 2009, in contrast to a net income of $9.19 billion or $7.79 per share in the third quarter of 2008. Commercial metals company AK Steel posted a negligible income of $6.2 million compared to $188.3 million in the same quarter of 2008.

Despite a sharp rise in steel prices in September 2009, the future pricing remains uncertain, and we believe continued demand weakness, production resumption by some mills and lower iron ore and coking coal prices in the second half of 2009 would drive monthly prices down again. The recent significant reduction in global steel production in late 2008 and into 2009 has resulted in decreases in many raw material prices.

We expect that such prices will rebound when global steel production returns to more customary levels. In contrast, prices for steelmaking commodities such as steel scrap, coal, coke, iron ore, zinc, tin and other metallic additions have escalated significantly over the last several years due primarily to growth in worldwide steel production, especially in China.Zacks Investment Research

DrStockPick.com Stock Report! 11/12/09, CSRH, URNI, EFLN, CSOL, EXC, SEED

Dr. Stock Pick — Thu, 12 Nov 2009 19:57:03 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 12, 2009 DrStockPick.com Stock Report! ************************************************************** Consorteum Holdings Inc. (OTCBB: CSRH) announced that it has proceeded to launch its consumer stored value rebate card. The consumer rebate card program will offer manufacturers and retailers a new way to process mail-in rebates that [...]

HCEI, Healthy Coffee is well Positioned in the Market Place at the Intersection of Three Mega-billion Dollar Industries: Coffee, Wellness and Energy Drinks

Dr. Stock Pick — Thu, 12 Nov 2009 18:40:01 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 12, 2009 DrStockPick.com Stock Report! ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK ** Healthy Coffee INTL is well Positioned in the Market Place at the Intersection of Three Mega-billion Dollar Industries: Coffee, Wellness and Energy Drinks HCEI is focused on bringing health to the world’s largest [...]

DrStockPick.com Stock Report! 11/12/09, HCEI, MIL, MNTA, PSS, PALM, EPAY

Dr. Stock Pick — Thu, 12 Nov 2009 17:40:33 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 12, 2009 DrStockPick.com Stock Report! ************************************************************** Healthy Coffee International, Inc. (Pinksheets:HCEI) announced the addition of Mr. Michael Sharp to its team of sales leaders. A native of Florida, Mr. Sharp has over 20 years of combined experience in the network marketing business, [...]

Liberty Global Grows Top-line – Analyst Blog

Zacks Market Commentaries — Thu, 12 Nov 2009 15:30:00 +0000

Liberty Global Inc. (LBTYA) declared mixed financial results for the third quarter of 2009. Quarterly total revenue of $2.82 billion was an improvement of 7% year-over-year and also better than the Zacks Consensus Estimate of $2.75 billion. This was primarily due to the fabulous growth of Telnet and J:COM operations, which provides broadband services in Belgium and Japan respectively.

Quarterly GAAP net loss was $120.3 million or 45 cents per share compared to a net loss of $308.9 million or $1.01 in the prior-year quarter. However, third quarter net loss from continuing operation was 22 cents per share, above the Zacks Consensus estimate of a loss of 20 cents. Quarterly cost of operation was $1,059.2 million, up 5.5% year-over-year.

Selling, General and Administrative expense was $523.8 million, up 2.4% year-over-year. Third quarter operating income was $463.8 million, up 13.6% year-over-year. During the reported quarter, Liberty Global generated $691.4 million of cash from operations compared to $692.6 million in the year-ago quarter.

Quarterly free cash flow (cash flow from operations less capital expenditures) was $166.5 million compared to $101.1 million in the year-ago quarter. At the end of the third quarter 2009, the company had $2.4 billion of cash and marketable securities and $21.7 billion of outstanding debt on its balance sheet.

Subscriber Statistics

At the end of the third quarter, Liberty Global had 16.6 million customers in 14 countries. During the reported quarter, the company added 500,000 net new customers.

At the end of the reported quarter, Liberty Global had 26.8 million (up 8% year-over-year) RGUs (revenue generating units) consisting of 15.2 million video, 6.5 million broadband internet and 5.1 million telephony subscribers. Quarterly consolidated ARPU (average revenue per user) was $47.51, up 4% year-over-year.

Segment wise Results

Revenue from total UPC Broadband division was $1,053 million, down 6.7% year-over-year. Within this segment, revenue from Western Europe was $759 million, down 2.7% year-over-year. Revenue from Central and Eastern Europe was $291.9 million, down 15.5% year-over-year. Revenue from Central and Corporate operation was $2.1 million, down 25% year-over-year.

Telnet revenue was $439.4 million, up 17.2% year-over-year. J:COM revenue was $891.2 million, up 29.9% year-over-year. VTR revenue was $179.7 million, remaining the same year-over-year. Corporate and other revenue was $281 million, down 1.1% year-over-year.
Read the full analyst report on "LBTYA"
Zacks Investment Research

Glaxo Reports Higher Revenues – Analyst Blog

Zacks Market Commentaries — Thu, 12 Nov 2009 14:01:15 +0000

GlaxoSmithKline, plc (GSK) reported third quarter income of 92 cents per American Depository Share (ADS), 3 cents below the Zacks Consensus Estimate. The company reported earnings of 94 cents in the year-ago period.

Third quarter 2009 revenue increased 3%, with growth being driven by strong performances in emerging markets (up 25%), Japan (up 19%) and Consumer Healthcare (up 8%). We were pleased to see growth in Consumer Healthcare revenue despite the global slowdown.

Meanwhile, US sales continued to be impacted by generic competition with revenue declining 12%. Sales of products like Imigran (down 74%), Lamictal (down 21%) and Requip (down 30%) and Wellbutrin XL (down 81%) kept declining.

Pharmaceutical product revenue increased 2% with sales being driven by Advair/Seretide (up 5%) and Relenza. Relenza benefited from continued orders from several governments for stockpiling.

Although vaccine sales were lower in the third quarter due to phasing of shipments, we expect strong vaccine segment revenue in the fourth quarter of 2009. In addition to strong influenza product sales, the company has made significant progress in expanding its vaccine product portfolio. The approval of cervical cancer vaccine Cervarix in the US and Japan, H1N1 vaccine Pandemrix in Europe, and the H1N1 vaccine in the US should all help drive vaccine segment revenue.

GlaxoSmithKline continued to make progress with its cost-cutting initiative, which should help offset the impact of increasing generic competition in the next few years and help earnings grow faster than revenues. The company’s restructuring program is expected to deliver £1.7 billion in annual savings. GlaxoSmithKline announced that it has achieved annualized cost savings of about £1 billion.

In our view, GlaxoSmithKline possesses one of the strongest late-stage pipelines in large-cap pharma. We believe that the company remains interested in accelerating growth through acquisitions and partnering arrangements.

The company’s HIV partnership with Pfizer (GSK) and the Stiefel acquisition are the beginning of a trend which we expect to continue. GlaxoSmithKline has also been active in expanding its presence in emerging markets as evident by its recent deals with companies like Bristol-Myers Squibb (BMY) and Dr. Reddy’s Laboratories (RDY), among others.
Read the full analyst report on "GSK"
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Read the full analyst report on "BMY"
Read the full analyst report on "RDY"
Zacks Investment Research

Japan’s Lost Decade – is it too late for U.S. to learn from their mistakes?

Bill Bonner — Thu, 12 Nov 2009 12:09:45 +0000

pa href="http://www.contrarianprofits.com/articles/author/bill-bonner/" class="alinks_links"Bill Bonner/a (The a href="http://www.dailyreckoning.com" class="alinks_links"Daily Reckoning/a):/p pThe Dow rose again yesterday – up 44 points. Gold went up too – to a new record of $1,114. /p pCan anything stop stocks and gold? /p pTrees do not grow to the sky, dear reader. And for every bounce there is a bust. /p p“It’s amazing, the US is doing everything that Japan did wrong,” said a friend yesterday. /p pLet’s see… in the 1980s Japan’s corporate leaders thought they were going to take over the world. Investors thought so too. They expanded. They wheeled. They dealed. Prices shot up and they all thought they were geniuses. /p pIn the ‘80s, everyone wanted to be Japanese. Management consultants used Japanese words to describe commonplace insights. /p pFor example, instead of saying#8230;/p

Gold bullion makes it eight in a row – what next?

Prieur du Plessis — Thu, 12 Nov 2009 07:45:53 +0000

Gold hit a new peak after a drop in the US dollar to a 15-month trough, resulting in the precious metal recording an eight-day winning streak. What happens next?

Prieur’s readings (November 12, 2009)

Prieur du Plessis — Thu, 12 Nov 2009 07:44:05 +0000

Roubini’s RGE: Global monetary policy outlook

Prieur du Plessis — Thu, 12 Nov 2009 07:41:35 +0000

This posts takes a look at some recent monetary policy trends in advanced economies, as seen by the team of analysts at Roubini Global Economics (RGE).

Leo Motors, Inc. (OTC:LEOM) “One of the Best Electric Vehicle Investment in the Market” Research Report by Princeton Research

Dr. Stock Pick — Wed, 11 Nov 2009 23:37:49 +0000

November, 2009 Volume1, Issue 1 One of the Best Electric Vehicle Investment in the Market Leo Motors, Inc. (OTC:LEOM) is the only company in the world that develops, manufactures and markets premium Electric Vehicle Power Systems that include electric engines, digital controllers, and 12th generation Lithium Polymer Battery Power Packs. LEO proved that it can make sustainable Electric [...]

HCEI, Healthy Coffee Opens New Sales Office in Yorba Linda, CA and Hires Sales Executive in Japan to Prepare for a Major Sales Campaign

Dr. Stock Pick — Wed, 11 Nov 2009 21:23:01 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Wednesday November 11, 2009 DrStockPick.com Stock Report! HCEI, Healthy Coffee International Inc., HCEI.PK ************************************************************** HCEI, Healthy Coffee International Inc., HCEI.PK HCEI is focused on bringing health to the world’s largest and most popular drink, coffee. The company’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and [...]

Mechel Recovers – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 20:43:24 +0000

Mechel OAO (MTL), one of Russia’s leading mining and metallurgical companies, has reported results for its second quarter and first half of 2009.

For the first half of 2009, Mechel reported revenues of $2.4 billion, down 54% from the year-ago period. The company reported net losses of $471.4 million in contrast to net income of $41.1 billion year over year. However, Mechel managed a net income of $219.3 million in the reported quarter after posting losses in the last two quarters. Revenues inched up 8.6% sequentially to $1.3 billion on higher sales volumes. Before this, revenues were impacted by weak demand for steel and coking coal as well as foreign exchange losses.

The Steel segment generated 57% of revenues, which slipped 53.5% year over year to $1.40 billion in the first half of 2009. Unfavorable market conditions and low demand for steel from the end consumer markets – especially auto, construction and machinery − resulted in the decline.

Revenues of $754.7 million in the quarter reflected an improvement of 17.3% from the previous quarter on steel sales volumes picking up slightly. During the first half of 2009, net losses in the Steel segment amounted to $321.5 million against net income of $467.4 million in the same period of 2008. However, Mechel reported a net income of $36.5 million in the quarter against net losses of $467.6 million in the year ago period. Steel production was up 27% to 1.4 billion tons in the quarter while coke output increased 34% to 723 million tons.

In 2009, Mechel foresees demand for steel from the Middle East and Southeast Asia. The company plans to operate facilities at 100% capacity.

By May 2009, Mechel had increased steel-making capacity utilization to 94%, metallurgical commodity products capacity utilization to 95%, including rolled products capacity to about 99%, hardware capacity to about 74%, while forgings and stampings crossed 58%.

The Mining segment generated 27% revenues during the first half of 2009. Sales in the segment plunged 60.5% year-over-year to $674.8 million, driven by a sharp decline in the demand for coking coal. EBIDTA margin of 23.3% more than halved from 51% in the year-ago period driven by higher production costs. In the latest quarter, revenues declined 4% to $330.6 million. Net income was $49.7 million in contrast to a net loss of $65.8 million.

Sequentially, production of coal was down 13% to 3 million tons. Coking coal production was up 19% to 1.2 million tons. Production of steam coal was down 27% year-over-year to 1.76 million tons.

Mechel is banking on Asian markets, particularly, China, Japan and South Korea. In June 2009, Mechel through its subsidiary Mechel Trading AG signed a long-term contract with South Korean Hyundai Steel to supply 300,000 tons of coking coal per annum from 2010. The company has a total supply contract of 2.0 million tons of coking coal and 2.3 million tons of steam coal in 2009 produced at its Yakutugol and Southern Kuzbass mines.

The Power segment produced 10% of revenues, which totaled $256.5 million, down 28.2% from the same quarter of the previous year. Mechel reported a net loss of $4.3 million compared with net income of $7.2 million in the year ago period. The economic crisis resulted in an overall demand for electricity. Moreover, Mechel’s power is expensive as compared to the liberalized electricity in Russia. Quarter on quarter, revenues were down 14.3% to $114.8 million and net losses amounted to $4.6 million.

The Ferroalloy segment yielded 5% of revenues, or $131 million, down 52.9% year over year. Mechel reported a net loss of $202.6 million compared with a net income of $38.9 million. However, revenues increased 43.2% quarter on quarter to $77.2 million. Net income of $126.1 million was driven by higher production costs and lower product prices. Mechel is increasing its output of high quality ferrochrome, an alloy required to produce stainless and special steel.

Mechel has a large capital-spending program. It reported capital expenditures of $223.2 million in the first half of 2009. Total debts were about $6.0 billion in the first half. Higher debts resulting in greater interest burden are a drag on the company’s profitability. Mechel has not provided any financial guidance for the rest of 2009.
Read the full analyst report on "MTL"
Zacks Investment Research

A Green Energy Investing Guideline

Investment U — Wed, 11 Nov 2009 16:03:54 +0000

A Green Energy Investing Guideline by Louise Harris, Investment U Research Typically, when investors think about making money from climate change, they think about buying shares of companies that specialize in biofuels or alternative or green energy. But those aren’t the only ways to profit from the green movement. Deutsche Bank Group (NYSE: DB) [...]

IDC Expands Services – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 15:00:00 +0000

Interactive Data Corporation (IDC) continues to expand its solutions and services. The leading provider of financial market data recently declared that its Real-Time Services business has added new market data coverage to PlusFeed, its low-latency, consolidated global datafeed. The company has also added different emerging market exchanges to PlusFeed services.

Interactive Data has added exchanges like National Commodity & Derivatives Exchange ( India ) in its Level 1 data services and Micex ( Russia ) Level 2 data services, as well as depth-of-market data for Johannesburg ( South Africa ) and Bombay ( India ) Stock Exchanges. Coverage of the Tokyo Financial Exchange ( Japan ) has also been added.

This apart, a few weeks back the company announced that its Pricing and Reference Data service business has enhanced the horizon of the interest rate swap valuation service. This service is of special help to clients, since it provides information to efficiently value portfolios in the over-the-counter (OTC) derivatives segment.

The company is also offering currency swaps in Australian dollars, British pounds, Czech koruna, Danish krone, Euros, Hungarian forint, Japanese yen, Norwegian krone, Polish zloty, Swedish krona, Swiss Francs, South African rand, U.S. dollars, Canadian Dollar and New Zealand Dollar.

The Bank for International Settlements (BIS) mentioned at the end of March 2009 that the notional amount of interest rate and currency swaps outstanding was $342.8 trillion at the end of 2008 and the company claims that it covers a substantial portion of that interest rate swap outstanding.

The new services will help the company in the current economic environment, as it expands its geographic footprint, increase customer satisfaction and improve prospects within existing markets. This should, in turn, translate into a healthier topline. IDC provided decent third quarter results with revenue moving up around 2% from the previous year and EPS exceeding our estimate.

As the company’s business is directly related to the financial services industry, a gradual revival in the sector will expand business opportunities for the company.
Read the full analyst report on "IDC"
Zacks Investment Research

Dollar Decline in Perspective – Analyst Blog

Dirk Van Dijk — Tue, 10 Nov 2009 21:44:42 +0000

The dollar has clearly been under pressure this year. Most of the graphs of it that you have seen probably look like the first graph below, which shows what the dollar has done against two indexes since the start of the year. The blue line is how the greenback has fared against the major currencies like the Euro and the Yen, and the red line includes those, but also looks at how it has fared against a much broader collection of currencies.

Since March 9th, the day the market hit bottom -- and the dollar hit its high for the year -- it is down 14.4% against the major currencies and down 11.5% against the broad basket of currencies.

This has a number of implications. For starters, anyone from outside the country has seen nice gains if they invested in the U.S. market, but not nearly as eye-popping as the returns that domestic investors have seen. It also means that commodity prices have gone up much less for people based in Europe or Japan than they have for people in the U.S. Yes, the price of oil is up in Yen and Euros this year, but not by nearly as much as in the U.S.

There are those (many with very large soapboxes) who would have you believe that the decline in the dollar is a crisis. I, however, beg to differ.

While in the big picture over time it is not desirable to have the currency constantly devalued, at this point the decline is not likely to cause major problems. The major downside to a falling dollar is that it makes our imports more expensive, and thus can contribute to inflation. This is particularly true in the case of oil, which tends to rise as the dollar falls. After all, why should the price of oil for someone in France or Japan go down just because the dollar is weak?

However, right now such inflation is just offsetting deflation in other parts of the economy. The biggest weighting in the CPI is owner’s equivalent rent, or what it would cost you to rent a home identical to the one you own next door to your house. It makes up almost 24% of the overall CPI. Add in the rent that people pay to landlords if they don’t own a house and the figure gets close to 30%. It is part of core inflation, so if you strip out food and energy prices it is almost 40% of the core basket of goods.

Due to the weak housing market, and rapidly rising rental vacancy rates, rents are likely to be under substantial pressure for some time to come.

There is one currency, though, that the dollar has not declined against, and that is the Chinese Yuan, since the Chinese peg it to the dollar. Since we import a lot of goods from China, the decline in the dollar is not going to cause inflation in those prices.

The upside is that it means that our exports are much more competitive. This applies even in China, since we are often going head to head, not against local Chinese companies, but against European or Japanese firms. More exports mean more jobs, and a lower trade deficit.

Remember that net exports are a direct input into the GDP calculations. With an unemployment rate of 10.2% and rising, getting the economy moving again is a FAR higher priority than fighting inflation during a time of major deflationary pressures.

Since many U.S. companies have substantial operations abroad, or export goods, the decline in the dollar means a major tailwind to their earnings, since the euro they earned is worth more in dollars today than the euro they earned a few months ago was worth then. For the S&P 500 as a whole, more than 40% of the earnings come from abroad. For many companies like Coca Cola (KO) and Colgate Palmolive (CL), it is much higher than that.

One also has to take a longer-term look. The dollar has been slipping against both indexes since 2001, but there was a huge and sharp counter-trend rally a year ago as the world economy saw the wheels come off. The U.S. has always been a safe haven in times of distress, and around the world people flocked to pull their money out of Pounds and Rupees as they tried to find a safe place to hide in the turmoil.

The dollar still has not returned to the lows it saw early last year. Seeing the dollar decline as a crisis is sort of like seeing the decline in the TED spread as a crisis. It is not -- it is a sign that things are getting back to normal.

Also, the dollar has suffered far greater declines in the past with no major ill effects on the economy. To believe that a 14.4% decline in the dollar today is going to cause major havoc in the economy, then one must remember the last half of the 1980’s -- when the dollar fell by almost 40% against other major currencies -- as a period of economic disaster. Somehow that is not my recollection of the time.

Given the chronic trade deficits this country is running, and has been running for a long time, a weak dollar might not be good, but it is necessary. The last quarter we ran a trade surplus in was the 3Q of 1980. That’s right, when Jimmy Carter was in the White House.

While recently the trade deficit has come down, it was still 2.71% of GDP in the third quarter. That is still an awful number for our long-term economic health. However, it looks great when you consider that the trade deficit has averaged 4.575 of GDP so far this century and was over 5% of GDP for three straight years, from the second quarter of 2004 through the second quarter of 2007.

It is the trade deficit that determines how indebted we are to the rest of the world, not the fiscal deficit. We have run up big debts to the rest of the world, resulting in China for example owning over $1.5 Trillion in T-notes. In return, we got all the stuff that line the shelves of Wal-Mart (WMT). Now the credit card statement has come and we have to start paying. As the dollar falls it means we get to pay that debt back cheaper. We have to make and sell less stuff overseas compared to the stuff that was made abroad and sent here.

Now, other countries might not be all that happy about it, but what are they going to do? Sell their dollars so we can repay even cheaper? As long as the decline in the dollar is gradual and orderly, it will help boost the economy. The stock market realizes this. The fact that the market bottomed on the same day the dollar peaked out was no coincidence.
Read the full analyst report on "KO"
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McDonald’s Outdoing Rivals – Analyst Blog

Zacks Market Commentaries — Tue, 10 Nov 2009 15:30:10 +0000

McDonald’s Corporation’s (MCD) comparable sales for the month of October 2009 showed a sluggish growth of 3.3% as against the rise of 8.2% in the same month last year, exposing its sensitivity to rising unemployment, economic downturn, and the discount war amongst fast-food chains to lure consumers.

The company faces stiff competition from Burger King Holdings Inc. (BKC), Wendy’s/Arby’s Group, Inc. (WEN) and Yum! Brands Inc. (YUM). However, these quick-service operators are faring better than casual dining restaurant chains, such as Cosi Inc. (COSI) and Red Robin Gourmet Burgers Inc. (RRGB), as cash-strapped consumers are trading towards fast-food centers due to relative cheap dining options.

System-wide sales at McDonald’s worldwide restaurants climbed 10.3% for the month of October. However, in constant currencies, the rate of increase in system-wide sales dipped to 5.2%.  In the United States , comparable sales remained flat falling 0.1% in October (versus 5.3% increase last year for the comparable month). New menu products, including Angus Third Pounders and McCafe premium coffee line-up continued to support the month's results.

The fast-food giant had earlier indicated that U.S. sales for the month of October would be weak. Still the month’s result fared better than the overall quick-service restaurant industry.

In Europe, comparable sales increased 6.4% in October (versus 9.8% increase last year for the comparable month) fueled by strong performance in the U.K. , Germany and France . A variety of mid-tier items and premium menu options contributed to sales.  Comparable sales in Asia/Pacific, Middle East and Africa (APMEA) rose 4.7% in October (versus 11.5% increase last year for the comparable month) driven by Australia and Japan, partly offset by China.
Read the full analyst report on "MCD"
Read the full analyst report on "BKC"
Read the full analyst report on "WEN"
Read the full analyst report on "YUM"
Read the full analyst report on "COSI"
Read the full analyst report on "RRGB"
Zacks Investment Research

Fine Wines – not your grandfather’s Investment Fund!

Contrarian Profits — Tue, 10 Nov 2009 13:13:30 +0000

pUp 9.5% over 12 months, the Liv-ex 100 Fine Wine Index (below) has clawed back some of last year#8217;s losses, when the industry#8217;s main benchmark index fell 14.6% in 2008. So should you be piling into the fine wine market?/p pProbably not. First off, new Asian buyers and a #8220;whole pile of Johnny-come-lately types#8221; are fuelling current demand. A six-litre bottle of Château Pétrus 1982 recently sold for a record £60,000 at auction in Hong Kong, a city where wine imports rose by more than 40% in the first eight months of the year. /p pMeanwhile, in Christie#8217;s spring 2009 global sales, Asian and Chinese buyers accounted for 61% of the total sale value, compared to 7% in 2005. #8220;With demand coming#8230;/p

HZHI, HCEI, DrStockPick.com Stock Watch! Horizon Health International Corp., HZHI.PK and Healthy Coffee International Inc., HCEI.PK

Dr. Stock Pick — Tue, 10 Nov 2009 01:02:56 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday November 9, 2009 DrStockPick.com Stock Watch! ************************************************************** HZHI, Horizon Health International Corp., HZHI.PK HZHI through its US and Canadian Subsidiaries is servicing all of North America through its E-Commerce System, providing services as a ‘Home, Office and Workplace Medical Equipment Specialist’ offering a complete end-to-end shopping [...]

Big Pharma and Biotech – Industry Outlook

Zacks Market Commentaries — Mon, 09 Nov 2009 21:47:40 +0000

The pharmaceutical industry has witnessed major changes in 2009. Performance has been affected by factors like sluggish prescription trends, intensifying generic competition and limited phase III catalysts. The next five years are expected to reflect a significant imbalance between new product introductions and patent losses.

According to IMS Health (RX), this is the main reason why global pharmaceutical market growth will be restricted to the mid-single digits through 2013. Over the next five years, products that currently generate about $137 billion in sales are expected to face generic competition, including Lipitor, Plavix and Seretide. At the same time, new products are not expected to generate the same level of sales as the products losing patent protection have.

With most of the big pharma companies already facing patent challenges for their blockbuster products or likely to face them going forward, the companies have been looking toward mergers and acquisitions (M&A) and in-licensing deals to make up for the loss of revenues.

We saw huge M&A activity in the first half of 2009. Major deals include Abbott Laboratories’ (ABT) acquisition of Advanced Medical Optics, Johnson & Johnson’s (JNJ) acquisition of Mentor Corp., Pfizer’s (PFE) acquisition of Wyeth and the merger between Merck (MRK) and Schering-Plough (SGP).

While these deals took place between large-cap pharma companies, others have been looking toward biotech companies to build their product portfolios. Prime examples include Johnson & Johnson’s acquisition of Cougar Biotechnology, Roche’s acquisition of Genentech, Bristol-Myer Squibbs’ (BMY) acquisition of Medarex, and Sanofi-Aventis’ (SNY) acquisition of Fovea Pharmaceuticals, SA.

We expect this trend to continue. Small biotech companies are also game for such deals. Given the current economic situation, most small biotech companies are finding it difficult to raise cash, thereby making it difficult for them to survive and continue with the development of promising pipeline candidates. As such, it makes sense for these companies to seek deals with pharma companies that are sitting on huge piles of cash. We would recommend investors to put their money in biotech stocks that have attractive pipeline candidates or technology that can be used for the development of novel therapeutics.

Another recent trend seen in the pharmaceutical sector is a focus on emerging markets. Companies like Mylan Inc (MYL), GlaxoSmithKline (GSK) and Sanofi-Aventis are all looking to expand their presence in India, China, Brazil and other emerging markets.

Until recently, most of the commercialization efforts were focused on the U.S. (the largest pharmaceutical market), Europe and Japan. However, emerging markets are slowly and steadily gaining more importance and several companies are now shifting their focus to these areas. According to IMS Health, China’s pharmaceutical market is expected to continue to grow more than 20% annually, and contribute 21% of overall global growth through 2013. Growth in emerging markets could help stabilize the base business during the industry’s 2010-15 patent cliff.

In addition to patent challenges, pharma companies have been facing headwinds in the form of foreign exchange fluctuations. Increased generic competition and foreign exchange headwinds will continue impacting revenues of major pharmaceutical companies. Johnson & Johnson recently reported that third quarter revenues were down due to the impact of generics and foreign exchange headwinds. With revenue growth stalling or slowing down, companies have been resorting to cost-cutting and share buybacks to drive bottom-line growth.

Valuations, however, are attractive, with several of the largest players trading at PEs below 10x, including: Pfizer (8.3x), Eli Lilly (LLY) (7.7x), Sanofi-Aventis ( 7.7x), and AstraZeneca (AZN) (7.2x) based on fiscal 2009 estimates. Attractive valuations, along with big dividend yields and diversified revenues bases, should protect investors from significant downside risk even if the economy continues to languish in the coming quarters.

OPPORTUNITIES

In the pharma space, we are positive on stocks like Alcon (ACL) and Novartis (NVS). We believe these companies will continue witnessing revenue growth based on continued international penetration, new product launches and market share expansion. Pipeline expansion through in-licensing deals and acquisitions should also add to growth.

Novartis should see strong vaccine sales this flu season. The company has received approval from the U.S. Food and Drug Administration for its swine flu vaccine, which should drive revenues.

Although we have Neutral ratings on names like Johnson & Johnson and Abbott Labs, we maintain a positive outlook on these stocks given their diversified revenue base, strong business segments, contributions from recent acquisitions and impressive late-stage pipelines. We also have a positive outlook on Bristol-Myers, which has a strong presence in attractive areas like biologics, cancer and cardiovascular drugs.

In the biotech space, we are positive on names like Gilead Sciences (GILD) and Biogen Idec (BIIB) even though we have Neutral recommendations on these stocks. Gilead’s HIV franchise has been helping the company post better-than-expected earnings over the past few quarters and we expect this trend to continue.

Biotech companies that could be acquisition targets provide opportunities for significant returns. Here, we would like to mention two companies that could be potential take-out targets -- Biogen Idec and Acorda Therapeutics (ACOR). In addition to holding a leading position in the multiple sclerosis market, we believe Biogen has the best pipeline in all of biotech and could be an attractive takeover candidate for pharma companies interested in biologics.

Meanwhile, Acorda is one of the more interesting biotechnology companies under our coverage. We have an Outperform rating on the stock. Acorda recently received a favorable recommendation from an FDA advisory panel on its key pipeline drug, Fampridine-SR, which could have blockbuster potential worldwide.

WEAKNESSES

We recommend avoiding names that offer little growth or opportunity for a take-out. These include companies which are developing drugs that are likely to face regulatory hurdles. The FDA has been exercising more caution before granting approval to new products and several candidates have been facing delays in receiving final approval.

We would also avoid companies like Eli Lilly & Co. (LLY) which are facing patent expirations on key products and do not have a solid pipeline to make up for the loss of revenues that will take place once generics enter the market.

Meanwhile, we continue to believe Pfizer’s (PFE) acquisition of Wyeth (WYE) will create an even bigger struggling company. Both companies have significant patent expirations in the years to come, and both have been severely lacking in their R&D productivity over the past few years. We recommend avoiding both names.

In the biotech sector, we have an Underperform rating on Genzyme Corporation (GENZ), which is facing issues like lower revenues, contracting gross margins, supply constraints, manufacturing hiccups and delays in new product launches.

We would also recommend avoiding biotech companies that are struggling to survive and are unable to strike partnership deals for their pipeline candidates. One name that comes to mind is MannKind Corp. (MNKD) which has been looking for a partner for its key candidate, Afresa. The company’s stock declined significantly on the news that it will not be able to enter into a partnership deal by year end, contrary to earlier expectations.

Another name to avoid would be Alkermes, Inc. (ALKS) which is awaiting FDA approval for its type-II diabetes candidate, exenatide once-weekly. Although the efficacy data on exenatide once-weekly is impressive, we are concerned that the approval of the product could be pushed back beyond the first quarter of 2010, given the current regulatory environment and concerns regarding the safety of the candidate.Zacks Investment Research

HCEI, Top Sales Leader With 20 Years of Network Marketing Experience Joins Healthy Coffee Japan

Dr. Stock Pick — Mon, 09 Nov 2009 18:31:36 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday November 9, 2009 DrStockPick.com Stock Report! HCEI, Healthy Coffee International Inc., HCEI.PK ************************************************************** Top Sales Leader With 20 Years of Network Marketing Experience Joins Healthy Coffee Japan NEWPORT BEACH, CA–(CRWENEWSWIRE - Nov 09, 2009) - Healthy Coffee International, Inc. (Pinksheets:HCEI - News) is pleased to announce the addition [...]

NCR Grabs Netkey – Analyst Blog

Zacks Market Commentaries — Mon, 09 Nov 2009 18:16:26 +0000

A recent press release from NCR Corp. (NCR) confirms that it has purchased the assets of a market-leading provider of kiosk and digital signage software applications, Netkey, Inc. for an undisclosed amount. We believe that after acquisition NCR is expected to integrate Netkey’s software with its own technologies to deliver world class enterprise solutions, including both hardware and software solutions to its clients.

This acquisition is expected to provide NCR with a good digital signage application platform, which is built on the same platform as Netkey’s kiosk applications, thereby helping the deployment and support of NCR’s solutions.

It will also enable NCR to help customers across multiple industries with kiosk and digital signage solutions that deliver more effective transactions, promotions and information which is the main reason for the merger. The more customer-friendly solutions are expected to attract new customers.

This should be a positive in the current environment, especially considering the fact that the third quarter numbers were disappointing. NCR reported revenues of $1.14 billion, a decrease of 18.0% from $1.37 billion in the year-ago quarter. This decrease included approximately 1 percentage point of negative impact from foreign currency translation. The year-over-year revenue comparison was impacted by global economic conditions which weakened the global financial services, retail and hospitality industries.

The company reported substantial revenue declines across all its geographic regions namely, the Americas, Europe Middle East and Africa (EMEA), and Asia Pacific and Japan (APJ). This apart, NCR expects a dull 2009, which is expected to result in a revenue decline of 12% to 14% on a constant currency basis compared with 2008. Although the recent acquisition is expected to positively influence the revenue stream in the long run but the near-term outlook of the company remains bearish.

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

Volcano Beats – Analyst Blog

Zacks Market Commentaries — Mon, 09 Nov 2009 10:15:00 +0000

Volcano Corporation (VOLC) reported a net loss of 5 cents in the third quarter, narrower than the Zacks Consensus Estimate for a net loss of 12 cents. Although third-quarter revenues increased 22% from the year-ago period, earnings declined from last year's profit of one penny, mainly due to higher operating expenses.

Third quarter revenues came in at $54 million. Revenues included $4.6 million from Axsun Technologies, Inc, which was acquired by Volcano in late 2008.

Although intravascular ultrasound (IVUS) systems sales declined 20% to $8.4 million, sales of IVUS disposables increased 15% to $31.3 million. Growth in the Japanese market remained strong at 22%. Meanwhile, the U.S. market recorded growth of 16% in IVUS disposable sales. Functional Measurement (FM) device sales increased a whopping 53% to $7.6 million, led by more than 75% growth in the U.S. and rest-of-the-world (ROW) countries.

Data presented at the Transcatheter Cardiovascular Therapeutics (TCT) meeting showed that the use of IVUS and FM devices not only enhances patient care but also has a meaningful impact on the cost of healthcare. This data could help drive demand for these products.

Operating expenses increased 41.5% to $38.5 million. We expect operating expenses to increase due to higher spending in Japan , expansion of sales and marketing programs in other geographies, and spending associated with clinical studies.

During the quarter, the company completed its transition from a distributor relationship with Goodman to a direct sales effort in Japan. Direct marketing in Japan should allow Volcano to realize end market prices on its products. Japan is the largest IVUS market, and the establishment of a direct sales force should allow the company to provide more focused service and support to the market. We believe the transition will boost top- and bottom-line growth in the long run.

The company reaffirmed its previously issued guidance for 2009. While revenues are expected in the range of $218-$223 million (up 27-30% over revenues in 2008), Volcano expects to post a net loss in the range of 6-11 cents.

Volcano's ability to sustain its strong revenue growth appears promising as a result of market share gains, successful execution of growth strategies, and a strong R&D emphasis. While tight hospital budgets could keep a lid on growth in the near-term, we believe that increasing demand for the company's products will support strong results going forward. Positive clinical data on IVUS/FM should also help the company take share from Boston Scientific Corporation (BSX) and St. Jude Medical (STJ). We have a Neutral rating on Volcano.

Read the full analyst report on "VOLC"
Read the full analyst report on "BSX"
Read the full analyst report on "STJ"
Zacks Investment Research

Richard Koo: Lessons learned from Japan’s “lost decade”

Prieur du Plessis — Mon, 09 Nov 2009 05:10:37 +0000

Richard Koo, the world-renowned chief economist of Nomura Research Institute, discusses the lessons learned from Japan's "lost decade", as well as the role of government stimulus in alleviating the problems of a balance sheet recession.

“BUY” Recommendation to CVAT by One of Wall Street’s ELITE Independent Research Firms with a $2.04 long term price target.. DrStockPick.com Watch List! for Monday November 9, 2009, Cavitation Technologies Inc., CVAT.OB

Dr. Stock Pick — Mon, 09 Nov 2009 00:03:08 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ DrStockPick.com Watch List! My Big Pick for Monday November 9, 2009 is: ************************************************************** CVAT, Cavitation Technologies Inc., CVAT.OB A research report has been issued on CVAT by Grass Roots Research and Distribution Inc., Wall Street’s leading independent research firm, with a “BUY” recommendation and a $2.04 long term [...]

“BUY” Recommendation to CVAT by One of Wall Street’s ELITE Independent Research Firms with 430% Over Its Last Trade Price Target. DrStockPick.com Watch List! for Monday November 9, 2009, Cavitation Technologies Inc., CVAT.OB

Dr. Stock Pick — Sun, 08 Nov 2009 23:02:58 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ DrStockPick.com Watch List! My Big Pick for Monday November 9, 2009 is: ************************************************************** CVAT, Cavitation Technologies Inc., CVAT.OB A research report has been issued on CVAT by Grass Roots Research and Distribution Inc., Wall Street’s leading independent research firm, with a “BUY” recommendation and a $2.04 long term [...]

DrStockPick.com Stock Report! 11/06/09, HPJ, CVAT, CVM, ASH, HFFI, MJN

Dr. Stock Pick — Fri, 06 Nov 2009 18:49:39 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday November 6, 2009 DrStockPick.com Stock Report! ************************************************************** Cavitation Technologies, Inc. (OTC Bulletin Board: CVAT) announced recently that it has signed Miura Engineering Co., Ltd. Tokyo, Japan (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura is [...]

CVAT, Cavitation Technologies, Inc. to Offer its Nano-Cavitation Process Systems in Japan and Korea. Miura Engineering Co., Ltd. Tokyo, Japan is CVAT’s New Agent to Serve Markets in the Far East

Dr. Stock Pick — Fri, 06 Nov 2009 18:05:41 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday November 6, 2009 DrStockPick.com Stock Report! CVAT, Cavitation Technologies Inc, CVAT.OB ************************************************************** CTI Enters Into an Alliance With Miura Engineering Co., Ltd. Tokyo, Japan for CTI Nano-Cavitation Process Systems – CVAT 3-for-1 forward stock split Last week Cavitation Technologies, Inc. (OTCBB: CVAT) is a “Green-Tech” company, established in 2006 [...]

Valley Forge Composite Technologies, Inc. (VLFY.OB) Gains ‘Momentum’ with Wheel Products

QualityStocks — Fri, 06 Nov 2009 15:05:16 +0000

One company that is starting to gain recognition is Valley Forge Composite Technologies, Inc. With their headquarters in Covington, Kentucky, the Valley Forge has become a leader in Counter-Terrorism technology and has started to made major progress in the sales of their Momentum Wheel Products. Within these lines of products, Valley Forge is [...]

DrStockPick.com Stock Report! 11/05/09, IRIX, CVAT, AKAM, DUSS, PETM, BRK, PMRY

Dr. Stock Pick — Thu, 05 Nov 2009 18:59:13 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 5, 2009 DrStockPick.com Stock Report! ************************************************************** Cavitation Technologies, Inc. (OTC Bulletin Board: CVAT) announced recently that it has signed Miura Engineering Co., Ltd. Tokyo, Japan (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura is [...]

Panasonic Starts Tender for Sanyo – Analyst Blog

Zacks Market Commentaries — Thu, 05 Nov 2009 15:48:41 +0000

Panasonic Corp. (PC) provided another update on the acquisition of SANYO Electric Co Ltd. (SANYY) at its Board Meeting held on Nov 4, 2009. The company announced the start of its tender offer to acquire 3.1 billion shares of SANYO (or more than 50% of the company’s total shares) for approximately $4.4 billion (403 billion yen).

Earlier, Panasonic had planned to take over all of Sanyo's shares. Panasonic had entered into a capital and business alliance agreement with SANYO in Dec 2008. The latter is a leading company in the rechargeable battery business focused on lithium-ion rechargeable batteries. Panasonic is one of the leading manufacturers of electronic and electrical products, systems and components.

The tender offer is planned for Nov 5 through Dec 7 at a price of $1.4 or 131 yen per share. Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Banking Corp. (Sanyo's three major shareholders) holding approximately 70% of total shares have agreed to sell at least a combined 3.07 billion shares to Panasonic.

The Panasonic deal with SANYO is pending regulatory approval but the company said earlier that most of the regulatory hurdles have been taken care of in some countries. Panasonic has so far received the approval of seven regulatory bodies for its proposed acquisition of Sanyo Electric but is still waiting for regulatory approval from the United States Federal Trade Commission, the Ministry of Commerce and the European Commission.

The regulatory bodies were concerned on the growing combined market share of Panasonic and SANYO (approximately 90%) in nickel-metal hydride batteries and cylindrical primary lithium batteries, which will pose a threat to other manufacturers.

To deal with this, Panasonic said that it will transfer to FDK Corporation all the shares of SANYO Energy Twicell Co. Ltd., which conducts the business of rechargeable portable nickel metal-hydride batteries. The share transfer is expected to take place on Dec 21, 2009.

The energy business of SANYO will be added as Energy Solutions to Panasonic’s business, which will further expand its HIT (crystalline silicon) solar photovoltaic cells and modules (batteries) business and accelerate the development and commercialization of next-generation solar cells. By taking over SANYO, Panasonic plans to double production capacity of lithium ion batteries to around 1 million units a year by the middle of 2010.

Panasonic expects the alliance to result in a net profit growth of 80 billion yen in fiscal 2013. Panasonic and SANYO will also set up a ‘Collaboration Committee’, in which Panasonic will invest around 100 billion yen in order to achieve the synergy of both companies. 

Management said that Sanyo is expected to become Panasonic's subsidiary by mid-December, bringing greater expertise in two areas – batteries and solar panels.

This acquisition will enable Panasonic to more aggressively compete with market leaders such as Sony (SNE) and Hitachi (HIT) amid growing demand for the rechargeable power source commonly used in mobile phones, laptop PCs and digital cameras. Moreover, it will help Panasonic become Japan’s largest electronics maker.
Read the full analyst report on "PC"
Read the full analyst report on "SANYY"
Read the full analyst report on "SNE"
Read the full analyst report on "HIT"
Zacks Investment Research

DrStockPick.com Stock Report! 11/05/09, CVG, CVAT, COIN, SYX, SIGA, RTN

Dr. Stock Pick — Thu, 05 Nov 2009 15:30:52 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 5, 2009 DrStockPick.com Stock Report! ************************************************************** Cavitation Technologies, Inc. (OTC Bulletin Board: CVAT) announced recently that it has signed Miura Engineering Co., Ltd. Tokyo, Japan (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura is [...]

CVAT.OB, Cavitation Technologies, Inc. to Offer its Nano-Cavitation Process Systems in Japan and Korea. Miura Engineering Co., Ltd. Tokyo, Japan is CVAT’s New Agent to Serve Markets in the Far East

Dr. Stock Pick — Thu, 05 Nov 2009 14:31:10 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 5, 2009 DrStockPick.com Stock Report! CVAT, Cavitation Technologies Inc, CVAT.OB ************************************************************** CTI Enters Into an Alliance With Miura Engineering Co., Ltd. Tokyo, Japan for CTI Nano-Cavitation Process Systems – CVAT 3-for-1 forward stock split Last week Cavitation Technologies, Inc. (OTCBB: CVAT) is a “Green-Tech” company, established in 2006 [...]

Cisco Beats, Guides Up – Analyst Blog

Zacks Market Commentaries — Thu, 05 Nov 2009 13:30:29 +0000

Cisco Systems’ (CSCO) first quarter 2010 earnings beat the Zacks consensus by 13 cents. Revenue beat by 3.1%. Both revenue and EPS were significantly better than the guided range.

Revenue
Revenue of $9.02 billion was up 5.7% sequentially and down 12.7% year over year. Revenue was at the high-end of management’s guidance range of a year-over-year decline of 15-17%.

Products generated 80% of revenue, increasing 7.0% sequentially and declining 16.6% year over year. Order rates also strengthened, particularly in the U.S. , indicating continued revenue growth in the next quarter. Management stated that the company saw bottom in the fiscal fourth quarter, with improvement in the first. Results are likely to trend upward going forward.

Around 55% of total revenue was generated in the U.S. & Canada (up 5.1% sequentially), 20% came from Europe (up 9.3%), Emerging markets 9% (up 7.4%), Asia Pacific 11% (down 0.4%) and Japan 4% (up 12.4%). All geographies declined on a year-over-year basis, with the exception of Japan , which increased 2%. This was mainly due to recession-related weakness, as a result of which growth came off a smaller base.

Revenue by Product Line
Routers were 17% of total revenue, representing a sequential increase of 5.2% and a year-over-year decline of 17.0%. All categories of routers, including low-, mid- and high-range, declined double-digits from the year-ago period.

Switches were 32% of revenue, flat sequentially and down 20.6% year over year, with modular and fixed switches contributing almost equally to the year-over-year decline.

Advanced Technologies generated 26% of revenue, up 13.6% sequentially and down 15.1% year over year. There was particular weakness in video systems, although unified communications and security were also significantly weaker than the year-ago quarter.

The Other segment brought in 5% of revenue, increasing 24.3% sequentially and 8.8% year over year, mainly due to the impact of the Pure Digital acquisition and strength in tele-presence.

Services generated 20% of total revenue, growing 0.8% sequentially and 7.4% year over year.

Gross Margin
The company generated a gross margin of 66.3% in the last quarter, which was a sequential increase of 94 bps and a year-over-year increase of 66 bps.

The product gross margin was 65.5%, up 167 bps sequentially and down 1bp year over year. The sequential increase was driven by lower discounts, increased cost savings and higher volumes shipped. The services gross margin declined 20 bps sequentially and increased 392 bps year over year. The sequential decline was on account of investment in certain projects, partially offset by volume. The year-over-year increase was driven by improved margins in both technical support and advanced services, as well as higher volumes.

Operating Performance
The operating expenses of $3.38 billion were higher than the previous quarter’s $3.35 billion. The operating margin was 28.8%, up 272 bps sequentially and down 98 bps year over year. The operating margin improvement was largely on account of cost controls, especially G&A (as a percentage of sales). G&A expenses were down 475 bps sequentially, although COGS, R&D and S&M also declined (as a percentage of sales).

On a pro forma basis, CSCO generated a net income of $2.26 billion, or a 25.1% net income margin compared to a $1.84 billion, or 21.5% in the previous quarter and $2.50 billion or 24.2% net income margin in the same quarter last year.

The fully diluted pro forma earnings per share (EPS) was $0.39, compared to $0.32 in the Jun quarter and $0.42 in the prior-year quarter. Our pro forma estimate excludes acquisition-related costs, deferred stock compensation and amortization of intangibles in the last quarter. Our pro forma calculations may differ from management’s presentation due to the inclusion/exclusion of some items that were not considered by management.

On a fully diluted GAAP basis, the company recorded a net income of $1.79 billion ($0.30 per share) compared to $1.08 billion ($0.19 per share) in the previous quarter and $2.20 billion ($0.37 per share) in the prior-year quarter.

Balance Sheet
Inventories increased 1.4% to $1.09 billion, yielding inventory turns of 11.2x. Days sales outstanding (DSOs) were around 32 days. The company ended with a cash and investments balance of $35.37 billion, an increase of $364 million from the end of the previous quarter. In the first quarter, the company generated $1.49 billion cash from operations and spent $1.87 billion on share repurchases. Cisco had $10.27 billion in long term debt, amounting to a net cash balance of $25.09 billion. Including long term liabilities, the debt-cap ratio was a mere 27.9%.

Guidance
In the second quarter, management expects revenue growth of 2-5% on a sequential basis and 1-4% on a year-over-year basis. The gross margin is expected to be 64-65%, operating expenses 37.5-38.5% of revenue, interest and other income of approximately $25 million, tax rate 22% and a decline in the weighted average share count of approximately 50 million. The company expects one-time charges, such as stock based compensation and acquisition-related expenses of around $0.06 to $0.08 per share. Management expects the company to generate operating cash flow of $1.8-2.1 billion.
Read the full analyst report on "CSCO"
Zacks Investment Research

Zacks Analyst Blog Highlights: Wal-Mart, Target, Claymore China Small Cap ETF, Coca-Cola and Aflac – Press Releases

Zacks Market Commentaries — Thu, 05 Nov 2009 12:25:26 +0000

For Immediate Release

Chicago, IL – November 5, 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: Wal-Mart (WMT), Target (TGT), Claymore China Small Cap ETF (HAO), Coca-Cola (KO) and Aflac (AFL).

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

Here are highlights from Wednesday’s AnalystBlog:

China Booming Again

The long-term key for China is to generate more consumer demand at home so it is not forever dependent on exports to fuel its growth. This is the mirror image of what the U.S. needs. We cannot forever run trade deficits, consuming more from the rest of the world than we produce.

It is the trade deficit that drives the expansion of U.S. debt held by China, not our fiscal deficit. Remember that point, it is an important one -- and one that the vast majority of talking heads on TV just don’t seem to get. Of course, each country’s exports are another country’s imports, and for every trade surplus, there must be an offsetting trade deficit somewhere else in the world.

So far it has been a pretty sweet deal for the U.S.: we get all the goods that fill the shelves of Wal-Mart (WMT) and Target (TGT), and they get little green pieces of paper. Recently those little green pieces of paper have been going down in value. How much longer does China want to send us real useful stuff in return for those pieces of paper (or, more accurately, little blips inside of computers)?

They have done so thus far because along with the paper, making that stuff they send abroad (actually, they export more to Europe than they do to the U.S.) creates jobs, and China needs jobs for social stability. However, so does the U.S., as our unemployment rate approaches 10%.

The deal is getting progressively less sweet for both sides as the dollars keep on piling up in Beijing. The solution over the long term is for China’s 1.3 billion people, the majority of whom still live in poverty, to start to consume more. If that can be accomplished, then Chinese society will be more stable, it will be able to maintain its employment levels and the U.S. might actually start to add a few jobs.

This would also greatly benefit the millions of smaller non-state-owned firms in China. The best way to play that trend is in the Claymore China Small Cap ETF (HAO), which has by far the largest exposure to the Chinese consumer of any of the China ETF’s. Buying individual stocks that are direct plays on the Chinese consumer is a risky proposition and is probably best left to those who can both read Mandarin and decipher financial statements written in it.

While China’s market has done well so far this year, so have most emerging markets. However, the economies of most emerging markets have not come close to matching the performance of the Chinese economy.

Underpinned by the strength in China, and rapidly growing inter region trade, the World Bank sees all of East Asia growing at a 6.7% rate in 2009, up from 5.3% growth seen back in April. Since Japan’s growth is likely to be rather sluggish (but also improving), that implies solid growth for the rest of the region. As the auto sales numbers yesterday showed, the Korean auto industry is not exactly hurting that much anymore.

In short, there are better places in the world to invest than in the U.S., and most U.S. investors are still far too heavily weighted towards domestic investments. However, you don’t just have to buy ADR’s or ETF’s to have international exposure. U.S. companies that get a high proportion of their sales from Asia will also probably benefit from the growth there. Coca-Cola (KO) would be a good example to take a well-known name. Aflac (AFL) is another, although for them the revenues come from Japan, not China.

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Zacks Investment Research

Alternative Energy – Industry Outlook

Zacks Market Commentaries — Wed, 04 Nov 2009 22:00:18 +0000

OUTLOOK

The Alternative Energy industry is going through a recovery after absorbing the global recession and the cascading fall in global crude oil prices. Earlier this year, quite a few alternative energy companies were in the trough. Though these companies have recovered from their lows, their valuations are still significantly lower than their 52-week highs.

The growth of alternative energy companies is closely tied to the fortunes of the economy. In its latest release, the Energy Information Administration (EIA) predicted that total U.S. electricity consumption will decline by 3.3% in 2009 before growing by 1.3% in 2010 as the improving economy coaxes a gradual recovery in electricity sales. In fiscal 2008, annual U.S. photovoltaic (PV) installed capacity grew by 63% year-over-year, bringing the cumulative installed capacity to 792MW.

According to the Solar Energy Industries Association (SEIA) -- the U.S. trade association representing close to 500 companies in the solar energy industry -- Germany ranked first followed by Spain, Japan and U.S. in terms of cumulative installed solar electric power as of year-end fiscal 2008. However in fiscal 2008, Spain (2.46GW in 2008) beat Germany (1.86GW) in terms of new installations. World solar PV installations reached a record high of 5.95GW in 2008, representing growth of 110% over 2007.

According to the European Photovoltaic Industry Association (EPIA) -- the world industry association for solar photovoltaic electricity market -- the cumulative global installed PV capacity stood at almost 15GW, compared to only 9GW in 2007.

OPPORTUNITIES

Environmental Advantage: Solar power is one of the most benign electric generation resources. Solar cells generate electricity without air or water emissions, noise, vibration, habitat impact or waste generation.

Fuel Risk Advantage: Unlike fossil and nuclear fuels, solar energy has no risk of fuel price volatility or delivery risk. Although there is variability in the amount and timing of sunlight in the day, season and year, a properly sized and configured system can be designed to be highly reliable while providing a long-term, fixed-price electric supply.

Locational Advantage: Unlike other renewable resources such as hydroelectric and wind power, solar power is generally located at a customer’s site due to the universal availability of sunlight. As a result, solar power limits the expense and energy losses associated with the transmission and distribution from large-scale electric plants to the end users. For most residential consumers seeking an environment-friendly power alternative, solar power is currently the only viable choice as it can be sourced in urban and rural environments.

Subsidy Programs: Governments, most notably that of China, have increased their financial support for solar projects. China is aiming at increasing its installed solar power capacity to 2GW by 2011 from 140MW capacity at the end of fiscal 2008. To fulfill this objective, the Chinese government offers 50% of the cost of investment of solar power projects. For solar projects in remote areas, the government subsidizes 70% of the project cost. A company under our coverage benefiting from this move includes Solarfun Power Holdings Co. Ltd. (SOLF).

Through the American Reinvestment and Recovery Act (ARRA) passed in February 2009, the U.S. Treasury Department has implemented a program to issue cash grants in lieu of the investment tax credit for renewable energy projects. Recent focus on renewable sources will greatly benefit green crusader companies like Rentech Inc. (RTK). Also, the Department of Energy (DOE) in the U.S. has implemented a loan guarantee program to help developers obtain financing for solar power projects.

WEAKNESSES

Recent Start-ups: A large number of alternative energy companies are recent start-ups with limited resources. As such, quite a few depend on their customers’ ability to finance solar projects.

Global Recession: The global economic crisis has affected alternative energy sales and earnings growth. Weakness in the debt and equity markets, for as long as it lasts, will raise costs of capital for firms in this emerging sector and may hinder project financing, working capital requirements and new research and development.

Fortune Tied to Crude: Alternative energy stock prices generally rise and fall in direct proportion to the price of crude oil. While in times of high oil prices this may present an opportunity, it also increases volatility in the sector.

Excess Capacity: Industry-wide excess solar cell and module capacity have led to stockpiling across the board. As a result, we think the performance of companies such as Evergreen Solar Inc. (ESLR), JA Solar Holdings Co Ltd. (JASO), A-Power Energy Generation System (APWR) and LDK Solar Company Ltd. (LDK) -- burdened as they are with high inventory levels -- will remain under pressure in the near term.

German Roll-back: Germany, one of the prime solar markets with a lucrative subsidy program, is considering a roll-back of its grants. This will affect companies such as First Solar Inc. (FSLR) and SunPower Corporation (SPWRA), who generate a substantial portion of their sales from Germany.Zacks Investment Research

China Booming Again – Analyst Blog

Dirk Van Dijk — Wed, 04 Nov 2009 19:45:11 +0000

The World Bank now estimates that China will grow 8.4% in 2009, up from its June forecast of 7.2% growth. Like the U.S., China embarked on a large fiscal stimulus program, one that relative to the size of its economy is more than three times as large as the American Reinvestment and Recovery Act was.

Well, surprise, surprise -- a bigger package has been more effective than a smaller one at lifting economic growth. China, of course, is in a better fiscal position to invest in its economy than the U.S. That is a legacy of the years of fiscal mismanagement in the U.S. going into the crisis, and the fact that China perpetually runs large trade surpluses while the U.S. runs chronic trade deficits.

For 2010, as some of the stimulus in China wears off -- but as the private economy there regains its footing -- growth of 8.7% is forecast for China by the World Bank. While this is down from the double-digit growth rates that China was running before the world economy went off the rails, relative to the rest of the world, China’s out-performance has stayed about the same.

That means that the financial crisis has not slowed China’s ascendency as a world economic power. It is currently the third largest economy in the world, and it will only be a few more years before it passes Japan to move into second place.

Based on the pace of quarterly improvement so far this year, the 8.7% growth rate for 2010 looks very conservative to me. In the first quarter, China grew at a 6.1% rate, then accelerated to 7.9% in the second quarter and to 8.9% for the third quarter. To reach the 8.4% level for all of 2009 implies a growth rate of over 10.5% in the fourth quarter.

That would imply that on a quarterly basis that growth starts to slow significantly in 2010 for China. That seems unlikely to me as its exports should pick up as the rest of the world starts to recover.

The long-term key for China is to generate more consumer demand at home so it is not forever dependent on exports to fuel its growth. This is the mirror image of what the U.S. needs. We cannot forever run trade deficits, consuming more from the rest of the world than we produce.

It is the trade deficit that drives the expansion of U.S. debt held by China, not our fiscal deficit. Remember that point, it is an important one -- and one that the vast majority of talking heads on TV just don’t seem to get. Of course, each country’s exports are another country’s imports, and for every trade surplus, there must be an offsetting trade deficit somewhere else in the world.

So far it has been a pretty sweet deal for the U.S.: we get all the goods that fill the shelves of Wal-Mart (WMT) and Target (TGT), and they get little green pieces of paper. Recently those little green pieces of paper have been going down in value. How much longer does China want to send us real useful stuff in return for those pieces of paper (or, more accurately, little blips inside of computers)?

They have done so thus far because along with the paper, making that stuff they send abroad (actually, they export more to Europe than they do to the U.S.) creates jobs, and China needs jobs for social stability. However, so does the U.S., as our unemployment rate approaches 10%.

The deal is getting progressively less sweet for both sides as the dollars keep on piling up in Beijing. The solution over the long term is for China’s 1.3 billion people, the majority of whom still live in poverty, to start to consume more. If that can be accomplished, then Chinese society will be more stable, it will be able to maintain its employment levels and the U.S. might actually start to add a few jobs.

This would also greatly benefit the millions of smaller non-state-owned firms in China. The best way to play that trend is in the Claymore China Small Cap ETF (HAO), which has by far the largest exposure to the Chinese consumer of any of the China ETF’s. Buying individual stocks that are direct plays on the Chinese consumer is a risky proposition and is probably best left to those who can both read Mandarin and decipher financial statements written in it.

While China’s market has done well so far this year, so have most emerging markets. However, the economies of most emerging markets have not come close to matching the performance of the Chinese economy.

Underpinned by the strength in China, and rapidly growing inter region trade, the World Bank sees all of East Asia growing at a 6.7% rate in 2009, up from 5.3% growth seen back in April. Since Japan’s growth is likely to be rather sluggish (but also improving), that implies solid growth for the rest of the region. As the auto sales numbers yesterday showed, the Korean auto industry is not exactly hurting that much anymore.

In short, there are better places in the world to invest than in the U.S., and most U.S. investors are still far too heavily weighted towards domestic investments. However, you don’t just have to buy ADR’s or ETF’s to have international exposure. U.S. companies that get a high proportion of their sales from Asia will also probably benefit from the growth there. Coca-Cola (KO) would be a good example to take a well-known name. Aflac (AFL) is another, although for them the revenues come from Japan, not China.
Read the full analyst report on "WMT"
Read the full analyst report on "TGT"
Read the full analyst report on "HAO"
Read the full analyst report on "KO"
Read the full analyst report on "AFL"
Zacks Investment Research

CVAT, Cavitation Technologies, Inc. to Offer its Nano-Cavitation Process Systems in Japan and Korea. Miura Engineering Co., Ltd. Tokyo, Japan is CVAT’s New Agent to Serve Markets in the Far East

Dr. Stock Pick — Wed, 04 Nov 2009 16:26:17 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Wednesday November 4, 2009 DrStockPick.com Stock Report! CVAT, Cavitation Technologies Inc, CVAT.OB ************************************************************** CTI Enters Into an Alliance With Miura Engineering Co., Ltd. Tokyo, Japan for CTI Nano-Cavitation Process Systems – CVAT 3-for-1 forward stock split Last week Cavitation Technologies, Inc. (OTCBB: CVAT) is a “Green-Tech” company, established in 2006 [...]

Pitney Bowes Exceeds Barely – Analyst Blog

Zacks Market Commentaries — Wed, 04 Nov 2009 16:00:25 +0000

Pitney Bowes Inc. (PBI) reported earnings per diluted share from continuing operations of 55 cents, compared with 67 cents in the prior year. This was higher than the Zacks Consensus Estimate of 54 cents. Earnings reflect the negative impacts of 1 cent per diluted share associated with currency and 1 cent per diluted share from incremental pension costs when compared with the prior year.

Revenue for the quarter was $1.36 billion compared with $1.55 billion in the prior year, a decline of 12%. A stronger dollar reduced revenue by 2% year-over-year.

The sustained nature of the recessionary environment is also driving some fundamental changes in the way businesses and customers connect, communicate and complete transactions in the global marketplace. Companies in most industries still have limited visibility and uncertain outlooks resulting in rising unemployment and ongoing caution about capital expenditures. These factors have contributed to depress mail volumes in mail intensive industries. Mailstream Solutions revenue declined 12% on a constant currency basis compared with the prior year. On a reported basis, revenue declined 14% to $925 million and earnings before interest and taxes (EBIT) declined 21% to $227 million compared with the prior year. Within Mailstream Solutions, U.S. Mailing revenue declined 12% to $491 million and EBIT declined 19% to $178 million compared with the prior year. Revenue declined by 4% and EBIT declined by 8% compared with the second quarter. International Mailing revenue declined 11% on a constant currency basis compared with the prior year.

Mailstream Services revenue declined 6% on a constant currency basis compared with the prior year. On a reported basis, revenue declined 8% to $432 million and EBIT increased 26% to $50 million compared with the prior year. Management Services revenue declined 8% on a constant currency basis compared with the prior year. Mail Services revenue declined 3% on a constant currency basis.

As a result of its strategic alliance with Hewlett-Packard in Sep 2009, the company launched the IntelliJet Printing System for high volume transactional mailers. During the quarter it also announced two partnerships that will help it expand its presence in the growing Asia Pacific market. Cannon marketing Japan will distribute one of its lower end metering systems to small and medium sized businesses in the Japanese market. It has also partnered with Digital China to distribute a variety of mailing solutions and software systems that provide variable data composition to small and medium sized businesses throughout China .

Free cash flow was $223 million for the quarter while on a GAAP basis the company generated $249 million in cash from operations. Free cash flow benefited from lower capital expenditures and lower levels of finance receivables. During the quarter the company paid $75 million of dividends to common shareholders. Cash and equivalents were $460 million with long-term debt at $4.2 billion and shareowners’ equity at $77 million.

The company expects earnings per diluted share from continuing operations, on a GAAP basis for the year, within the range of $2.09 to $2.21. The current Zacks Consensus Estimate is $2.25 per share. Revenue for the year is now expected to decline by 5% to 8% on a constant currency basis and 8 to 11% on a reported basis.

Pitney Bowes Inc. provides mail processing equipment and integrated mail solutions in the United States and internationally. It offers a suite of equipment, supplies, software, and services for end-to-end mailstream solutions, which enable its customers to optimize the flow of physical and electronic mail, documents, and packages across their operations. The company’s Mailstream Solutions group engages in the sale, rental, and financing of mail finishing, mail creation, shipping equipment, and software; and provision of supply, support, and other professional services, as well as payment solutions in the United States and internationally. Its Mailstream Services group offers facilities management services; secure mail services; reprographic, document management services; and litigation support and eDiscovery services. The company, formerly known as Pitney Bowes Postage Meter Company, was founded in 1920 and is headquartered in Stamford , Connecticut . Nearest competitor is Siemens AG (SI).
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Onyx Beats Estimates – Analyst Blog

Zacks Market Commentaries — Wed, 04 Nov 2009 15:17:06 +0000

Onyx Pharmaceuticals (ONXX) reported third quarter earnings of 28 cents per share, well above the Zacks Consensus Estimate of 22 cents as well as 21 cents reported in the year-ago period. The company, along with Bayer AG (BAYRY.PK), developed Nexavar (sorafenib) tablets, an anticancer therapy currently approved and marketed for the treatment of liver cancer and advanced kidney cancer in the US, European Union, Japan and some other countries. Onyx’s earnings come in the form of royalty and collaboration income on Nexavar sales.

For the quarter, Onyx reported revenues of $69.1 million compared to $50.8 million for the same period in 2008 primarily due to an increase in Nexavar sales and royalty revenue and a decline in the drug’s commercial expenses. While revenues increased 36%, a 43.6% rise in operating expenses brought down Onyx’s operating margin by 450 basis points to 14.5%. R&D and SG&A expenses increased 63% and 21.3%, respectively.

R&D expenses increased due to developmental programs of Nexavar for additional indications including thyroid, colorectal and adjuvant liver cancer and costs related to further development of another candidate, ONX 0801. Earlier, in September, Onyx began enrolling patients in a phase I study of ONX 0801 as a potential treatment for advanced solid tumors. This triggered a milestone payment of $7 million to BTG International Limited, which licensed the drug to Onyx.

At the end of the reported quarter, cash, cash equivalents, and marketable securities were $843.1 million, up from $458 million at the end of December 2008. The 84% increase in cash balance was primarily due to net proceeds of debt and equity financings in August 2009.

During the quarter, Onyx acquired privately held cancer drugmaker Proteolix for an upfront cash payment of $276 million. This transaction gives Onyx access to Proteolix's lead compound, carfilzomib, a mid-stage candidate for the treatment of multiple myeloma. We believe that the acquisition of Proteolix results in a significant addition to Onyx’s cancer pipeline.
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Ralph Lauren Beats Consensus – Analyst Blog

Zacks Market Commentaries — Tue, 03 Nov 2009 22:32:56 +0000

Polo Ralph Lauren Corporation (RL) reported results for the second quarter of fiscal 2010 with earnings of $1.75 per share. Earnings were well above the Zacks Consensus Estimate of 96 cents and were up 10.8% year-over-year.

Net sales for the quarter declined 3.4% year-over-year to $1.3 billion, primarily due to lower domestic wholesale sales, a reduction in same-store sales at the company’s retail segment and approximately 1% unfavorable impact of foreign currency translation. These were partially offset by the wholesale contribution of formerly licensed childrenswear and golf apparel products in Japan, and low single-digit currency growth in Europe.

Gross margins for the quarter expanded 189 basis points (bps) to 59.1% versus 57.3% in the comparable prior-year quarter. The increase was attributable to improved wholesale and retail segment margins, particularly in international markets, and supply chain cost savings initiatives. The operating margin for the quarter also expanded 89 bps to 18.5%, compared to 17.6% in the prior-year quarter.

The company ended the quarter with cash and cash equivalents of $423 million and has a long-term debt of $307.5 million. Capital expenditures in the second quarter amounted to $35 million and the company ended the quarter with inventory down 1% to $610 million from $619 million in the year-ago quarter.

During the quarter, the company opened 5 directly operated stores and closed 2 directly operated stores. At the end of the quarter, the company operated 328 stores with a total of approximately 2.5 million square feet, consistent with the prior-year period.

Based on the performance of the company in the second quarter, the company revised its guidance for fiscal 2010. Management now expects fiscal 2010 net revenues to decline in the mid-single-digit range, compared to the previous guidance of high-single-digit decline.

Management also provided guidance for the third quarter. Net revenues for the quarter are expected to decline in the low-single-digit range. The guidance includes flat-to-low single-digit comparable store sales growth for the retail segment.
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ATS Medical Reports In-Line – Analyst Blog

Zacks Market Commentaries — Tue, 03 Nov 2009 21:00:27 +0000

ATS Medical, Inc. (ATSI) reported a third quarter 2009 net loss of 1 cent per share, in-line with the Zacks Consensus Estimate but better than the year-ago loss per share of 6 cents.

Total revenues for the reported quarter were $18.8 million, increasing 17.3% year over year. Excluding an unfavorable foreign currency translation (FX), total revenues increased 19.4% year over year. Growth was broad-based across its major business segments.

Heart valve therapy revenues increased 20.5% year over year to $14.2 million. In this segment, Mechanical valve revenues increased 10% year over year to $11.6 million. This was due to higher demand for the ATS Open Pivot Mechanical Heart Valve in Asia and success from the recent launch of the AP360 valve in Japan.

Tissue valve revenues were $1.4 million, compared to $0.3 million in the year-ago quarter. Heart valve repair revenues increased 29% year over year to $1.2 million. ATS Medical received U.S. Food and Drug Administration (FDA) approval and also completed the first implant of a new ATS Simulus semi-rigid band in the reported quarter.

Cryoablation revenues increased 12% year over year to $4.5 million. The company launched the new ATS CryoMaze 10-S Surgical Cryoablation Probe in the U.S. in the third quarter. Furthermore, it received the CE Mark approval to market the new ATS CryoMaze 10-S Probe in Europe in Oct. 2009 and expects to launch the product there in the fourth quarter.

Gross margin in the quarter increased 380 basis points (bps) year over year to 62.9%. The company’s strong cost-cutting initiatives helped it in lowering the operating and net loss margins. Operating loss margin improved 1,400 bps year over year to a negative 3.1%. Net loss margin improved 1,810 bps year over year to a negative 5.2%.

ATS Medical ended the quarter with cash and short-term investments of roughly $12.1 million. The company had no outstanding debt at the end of the quarter and generated positive cash flow of approximately $0.8 million in the third quarter.

ATS Medical reaffirmed its revenue guidance of $77 to $79 million for full fiscal year 2009. The company also expects to generate net income in the fourth quarter of 2009.

Minneapolis, MN-based ATS Medical develops, manufactures and markets medical devices needed for cardiovascular surgery. The company’s main competitor is St. Jude Medical, Inc. (STJ). Other competitors include Medtronic, Inc. (MDT), Carbomedics and Edwards Lifesciences (EW).
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DrStockPick.com Stock Report! 11/03/09, CVAT, MCBC, ITW, PPHMD, GPK, ALK

Dr. Stock Pick — Tue, 03 Nov 2009 20:44:43 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Tuesday November 3, 2009 DrStockPick.com Stock Report! ************************************************************** Cavitation Technologies, Inc. (OTC Bulletin Board: CVAT) announced recently that it has signed Miura Engineering Co., Ltd. Tokyo, Japan (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura [...]

Restructuring at Panasonic – Analyst Blog

Zacks Market Commentaries — Tue, 03 Nov 2009 16:30:24 +0000

Panasonic Corp. (PC) plans to restructure its division, Motor Company in April 2010 to enhance growth potential and strengthen its management structure. Upon completion of the restructuring, the motor company will be dissolved.

Panasonic will reorganize and integrate its Home Appliance, Automotive Motor and Industrial Motor Businesses to form the Home Appliances Company (HA) and transfer the Information Equipment Motor Business to Minebea Motor Manufacturing Corporation.

The company will liquidate Panasonic Motor Matsusaka Co., Ltd., which is Panasonic's subsidiary company, for accelerating manufacturing at other optimal locations after transferring compact AC geared motors and industrial brushless motors to Panasonic Motor (Zhuhai).

Panasonic’s organizational restructuring and its ability to target resources to growth areas have enabled the company to withstand the weak economy. The company aims to strengthen both finished product manufacture and device businesses through company-wide cost reduction efforts, including material costs and fixed costs.

The company has experienced losses in 2009 due to the global economic slowdown, weak consumer spending and slump in electronics sales. To cope with the global slowdown, Panasonic plans to close and integrate 27 manufacturing sites, including 13 in Japan and 14 overseas as part of its restructuring plan. The company also plans to retrench 15,000 employees in Japan , by the end of March 2010.

The tough business environment, global recession and shrinking demand triggered by the financial crisis and changes in market structure have led the company to come out with various restructuring plans.

In fiscal 2010, the company plans to further strengthen its earnings in growing businesses, reform or withdraw its unprofitable businesses, expand its lines of business and accelerate new restructuring initiatives. As a result, the company expects 100.0 billion yen in cost reductions in fiscal 2010.

Panasonic is a leading manufacturer of electronic and electrical products, systems and components for a wide range of consumer, business and industrial uses. Yet, the company faces competition from other large players such as Sony Corp. (SNE) and Hitachi (HIT). Competition also emanates from large international companies such as those in South Korea.

We have a Neutral rating on the stock.
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DrStockPick.com Stock Report! 11/02/09, AMB, CVAT, HP, KAD, USU, ED

Dr. Stock Pick — Mon, 02 Nov 2009 14:43:03 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday November 2, 2009 DrStockPick.com Stock Report! ************************************************************** Cavitation Technologies, Inc. (OTC Bulletin Board: CVAT) announced recently that it has signed Miura Engineering Co., Ltd. Tokyo, Japan (www.miura21.co.jp) as its new agent to serve markets in Japan for CTI’s Nano-Cavitation Process Systems. Miura is [...]

CVAT Cavitation Technologies, Inc. to Offer its Nano-Cavitation Process Systems in Japan and Korea. Miura Engineering Co., Ltd. Tokyo, Japan is CVAT’s New Agent to Serve Markets in the Far East

Dr. Stock Pick — Mon, 02 Nov 2009 14:09:48 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday November 2, 2009 DrStockPick.com Stock Report! CVAT, Cavitation Technologies Inc, CVAT.OB ************************************************************** CTI Enters Into an Alliance With Miura Engineering Co., Ltd. Tokyo, Japan for CTI Nano-Cavitation Process Systems Cavitation Technologies, Inc. (OTCBB: CVAT) is a “Green-Tech” company, established in 2006 to become a world leader in the [...]