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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.
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Stock Guru Featured Company: Precious Metals Exchange Corp. (PRMX.PK)

QualityStocks — Wed, 18 Nov 2009 16:26:42 +0000

Precious Metals Exchange Corp. operates within the precious metals refining and recycling sector of the precious metals industry. The company’s core business is collecting unwanted and/or broken jewelry and other precious metal items, specifically targeting the U.S., Canada and Latin America markets. Utilizing direct marketing to identify potential customers, Precious Metals Exchange leverages a highly automated [...]

Bristow Group Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 17 Nov 2009 05:00:00 +0000

Bristow Group Inc. (BRS) has surprised on estimates 3 out of the last 4 quarters by an average of 10.50%. The company is trading at 11.7x forward earnings.

Company Description

Bristow Group is one of the largest providers of helicopter services in the world. Its primary customers are in the offshore energy industry in the North Sea, Nigeria, the Gulf of Mexico, Australia, Brazil, Russia and Trinidad. The company provides transportation, maintenance and search and rescue services.

Bristow Surprised by 39.39%

On Nov 4, Bristow Group reported its fiscal second quarter and surprised on the Zacks Consensus Estimate by 26 cents per share. Earnings per share rose 19.5% to 92 cents from 77 cents in the year ago period. Analysts were expecting just 66 cents.

Revenue was virtually unchanged from the second quarter of 2008 at $291.6 million compared to $291.7 million in 2008.

While the operating environment is still challenging in the energy industry, the company saw good operating results in Latin America, Nigeria and Australia during the quarter.

In Australia, the company won new business from several customers and also implemented cost cutting measures which boosted results. Nigeria is also a challenge because of the political environment.

Results in the Gulf of Mexico also fell from the previous quarter but the company said it wasn't as impacted as some of its competitors due to an upgrade in its air fleet which allowed it to serve projects further offshore in deeper water.

Bristow is expecting a turnaround in the energy industry, and therefore its business, by next year.

Zacks Consensus Estimates Jump

Given the big beat in the fiscal second quarter, covering analysts have been scrambling to raise estimates.

The fiscal third quarter Zacks Consensus is up 2 cents in the last week to 70 cents per share. The fiscal 2010 consensus also rose to $2.94 from $2.84 per share in the last 7 days with 2 out of 8 analysts raising during that time.

Value Fundamentals

Bristow Group is a Zacks #1 Rank (strong buy) stock. It has a price-to-book of 0.93. The company has a solid 5-year average return on equity (ROE) of 11.86%.

Zacks Investment Research

Dow Gearing Up to Divest – Analyst Blog

Zacks Market Commentaries — Mon, 16 Nov 2009 20:24:25 +0000

Dow Chemical Company (DOW) is planning to sell more non-core assets in 2010 to pay off debt from its $16.5 billion acquisition of rival Rohm and Haas in April of this year. It is planning further debt reductions of about $12 billion. Dow stated that it plans to lighten its debt load and achieve its financial targets ahead of schedule.

The Rohm and Haas acquisition is proving to be positive for Dow, which is expected to consolidate higher-margin and higher-growth specialty businesses and reduce volatility in earnings and cash flow, going forward. Dow is aiming to nearly double margins and quadruple earnings per share while reducing debt in the coming years.

The company has predicted earnings of $4 to $4.50 per share in 2012 (up from last year’s $1.82) to be achieved through a mix of growth synergies as well as restructuring and cost synergies. The company had achieved cost synergies of over $1 billion in the first nine months of 2009. Earnings of 24 cents in the third quarter of 2009 (significantly better than the Zacks Consensus Estimate of 9 cents and 5 cents reported in the previous quarter) were primarily driven by cost reduction and asset sales.

The new business structure is expected to drive Dow’s revenue by more than 10% per annum. Dow expects a greater focus on emerging markets including Southeast Asia, India, Latin America, China and Eastern Europe to contribute about 35% to total revenues in 2012. Management has also projected EBITDA margin expansion from 12% in the recent past to 20% over time.

Recently, Dow divested its Powder Coatings business to Akzo Nobel N.V. (AKZOY) - a leading producer of paints and coatings, based in Amsterdam, The Netherlands - for an undisclosed amount. Including this deal, Dow stated its divestiture activities to be on target to yield more than $3.5 billion in gross proceeds. The company is also planning to divest its Styron business next by the first quarter of 2010. As a part of its restructuring plan, Dow plans to divest 10 to 15 other businesses, which range in size between $100 million and $300 million in annual revenue.

Dow is also likely to benefit from cutting its stake in its basic chemicals business as part of its plan to focus on its more profitable Specialty Chemicals business. Recently, Dow had announced that its subsidiary Kow Kokam LLC acquired nearly all assets of lithium rechargeable battery maker Kokam America Inc. The company also announced the transfer to Dow of collective assets from High Power Lithium, a company focused on the development of technology for use in all lithium ion batter applications. Terms of neither agreement were disclosed.

We have upgraded Dow Chemical Company from Neutral to Outperform.
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TEO Net Surges But Misses Ests – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 19:51:08 +0000

Telecom Argentina (TEO) reported third-quarter earnings per ADS of 40 cents, falling short of the Zacks Consensus Estimate of 52 cents. However, reported net income from continuing operations grew 39% year over year to P$303 million (US$79 million), boosted by healthy growth from broadband and mobile segments.

Consolidated revenues increased 13% year over year to P$3.1 billion (US$803 million) as the company’s cellular business grew 13% while broadband business (Arnet) posted healthier annualized growth of 54%. Broadband Internet revenue growth was fueled by significant expansion of broadband service, commercial promotions, innovation of service portfolio and improved network coverage.

The company’s cellular telephony business achieved respectable growth in the quarter with revenue of P$2.1 billion (US$550 million) accounting for approximately 68% of the consolidated sales. Revenues from data transmission grew 25% year over year to P$70 million (US$18 million). Fixed-line voice service revenues increased 3.1% year over year to P$701 million (US$184 million).

Total wireless subscribers in Argentina reached 14 million, up 17% year over year. Approximately 69% of the overall subscriber base was prepaid and 31% was postpaid. Cellular subscribers at Nucleo (mobile subsidiary in Paraguay) reached roughly 1.8 million, down 1.9% year over year, with prepaid and postpaid customers representing 89% and 11%, respectively. The company ended the quarter with 15.8 million total mobile customers, up 15% year over year.

Aggregate fixed lines in service increased by 1% year over year to 4.3 million with broadband Internet customers (of 1.2 million) representing roughly 28% of the total.

Telecom Argentina continues to be benefited by the growing domestic wireless market (largest in Latin America in terms of mobile penetration) coupled with increased penetration of value-added services. The company launched the ‘SMS Messenger’ service during the quarter in collaboration with Microsoft (MSFT) which enables access to Windows Live Messenger from mobile handsets.

In broadband Internet, “Arnet Recargable" (the first pure prepaid ADSL product) and the first converged fixed and mobile broadband Internet service “On-the-Go" (combining ADSL and 3G services) continue to boost revenue per user.

Telecom Argentina has collaborated with leading satellite TV operator Direct TV (DTV) for its triple-play offerings which bundles voice telephony, Internet and pay-TV services. In the first phase of commercial deployment, the company is offering this service (called “SuperPack") in the Salta province, northwest Argentina. The deal eliminated the need for a broadcasting license as the telecom carriers in Argentina are currently barred from entering the pay-TV market under the existing regulatory framework.

While Telecom Argentina’s prospects in wireless and broadband appear promising, we remain concerned about the inflationary impacts on the company’s cost structure and bottom-line. The inflation level in Argentina is expected to be around 20% in 2009. Moreover, profitability of the company’s fixed telephony segment continues to be affected by frozen tariffs.
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Dow Divests Business – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 15:32:17 +0000

Diversified chemical company Dow Chemical Company (DOW) has signed an agreement to sell its non-core Powder Coatings Business to Akzo Nobel N.V. (AKZOY), a leading producer of paints and coatings, based in Amsterdam, The Netherlands. Financial terms of the transaction were not disclosed. The transaction is expected to close by the second quarter of 2010, subject to customary closing conditions, including regulatory approvals.

Dow plans to use the proceeds from the transaction to repay debt, consistent with the company's de-leveraging plan. Dow plans to raise about $3.5 billion by divesting its non-core assets. For the Chemicals group Akzo Nobel, the deal will bring upgraded technological expertise and significant synergy potential for the Powder Coatings business, as well as enhance the company's position in the U.S.

The powder coatings activities were purchased by Dow earlier this year as part of its acquisition of Rohm & Haas. Dow Chemical has become the world’s leading specialty chemicals and advanced materials company after acquiring Rohm and Haas for $16.3 billion. The acquisition appears positive for Dow, which is expected to consolidate higher margin and higher growth specialty businesses and reduce volatility in earnings and cash flow, going forward.

Joint ventures and acquisitions are an integral part of Dow’s growth strategy. These provide access to potential markets, new technologies and feedstock, at the same time lowering capital investment and risk. Management intends to place Rohm & Haas, along with some specialty chemical businesses, in a new Advanced Materials division. The acquisition has increased Dow’s position in the Specialty Chemicals market by broadening its product range in paints, coatings and electronic materials. This new division expects to achieve annual sales of $14 billion and cost synergies of $1.3 billion. Dow's current business profile has an anticipated growth rate of about 4% for the period 2009−2012.

The Rohm & Haas portfolio, on the other hand, is rooted in faster growing segments with an expected growth rate ranging between 5% and 9%. On a consolidated basis, the growth rate of the combined portfolio over this period is expected to be within 5% to 7%. The merger would be neutral to earnings in the second half of 2009. However, it is likely to boost Dow’s earnings by 5% in 2010 and 13% in 2011.

Dow is targeting faster-growing regions. The company earns two-thirds of its income from outside the U.S. Growth in emerging economies have been especially rapid, generating almost 28% of Dow’s revenues. Growth is 17% in Europe, where sales are $19.6 billion; 15% in the Asia-Pacific, where sales are $6.2 billion; and 14% in Latin America, where sales are $5.8 billion. Meanwhile, sales growth in Greater China and Eastern Europe were 24% and 30%, respectively.

We maintain our Outperform recommendation on the stock.
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Telefonica Tops on Lighter Sales – Analyst Blog

Zacks Market Commentaries — Thu, 12 Nov 2009 18:05:41 +0000

Telefonica (TEF) reported third-quarter 2009 results with earnings per ADS of US$1.88, comfortably beating the Zacks Consensus Estimate of US$1.49. The Spanish telecom giant reported net income of €1.99 billion (US$2.85 billion), down 0.6% year over year, due to lower sales as a result of the beleaguered economy, especially in Spain.

Revenue

Consolidated revenue fell 5.7% year over year to €14.1 billion (US$20.2 billion). Revenue was impacted by weak contributions from domestic and European markets due to the recession. Latin America contributed 40% of the group revenues followed by Spain at 35% and Europe at 25%.

Result by Segments

Telefonica Espana

The company’s Spanish revenue declined 8.9% to €4.9 billion (US$7 billion), impacted by a reduction in mobile termination rates (inter-operator fees) and the economic downturn. Wireline business revenues fell 9.4% year over year to €2.9 billion (US$4.1 billion) while revenue from wireless operation declined 6.4% to €2.3 billion (US$3.3 billion).

Telefonica Europe

Revenue from Europe declined 5.5% year over year to €3.5 billion (US$5 billion), especially due to lower revenue from the UK operation. Reported revenue from O2 UK (the company’s UK wireless operation and highest contributor to European sales) was €1.7 billion (US$2.4 billion), down 7% over the year-ago quarter, due to competition and termination rate cuts. Revenue from Germany increased 5.5% while in the Czech Republic they declined 15.7%.

O2 UK continues to struggle, with declining revenues as the operator faces intense competition, especially from its biggest rival Vodafone (VOD). Competition is set to intensify in the British mobile market as the other two major carriers Deutsche Telekom (DT) and France Telecom ((FTE) have finalized an agreement to merge their UK operations. The integrated company will dethrone Telefonica as the largest wireless carrier in the UK.

Telefonica Latin America

Revenue from Latin America, which has been the principal growth engine for Telefonica in the past quarters, also fell 2.3% year over year to €5.6 billion (US$8 billion). This is due to revenue declines across key markets such as Brazil, Argentina and Chile. Revenue in Brazil (the largest market) declined 8.9% year over year to €2.2 billion (US$3.1 billion), due to weaker contribution from its Brazilian subsidiaries, Vivo and Telesp.

Telefonica continues to lead the Brazilian wireless market with approximately 30% market share. The company recently made an all-cash bid to acquire Brazilian telecom operator GVT Holding SA in an effort to expand its presence in the lucrative Brazilian telecom market.

Subscriber Results

At the end of the third quarter, total customer access points reached approximately 268.6 million, up 6.6% year over year. Subscriber accretion was driven by healthy growth in wireless, broadband and Pay TV services.

Total retail broadband access grew 9.8% year over year to 13.2 million, boosted by the rapid adoption of bundled services (dual or triple play service packages). Total wireless access reached 205.9 million, with roughly 5 million net additions made during the quarter, driven by contributions from Brazil, Germany, Mexico and the UK. Pay TV access was 2.5 million, up 15.1% year over year.

Spain exited the quarter with 47.3 million access lines and 24 million wireless customers. Total customer access in Latin America reached 163.7 million with nearly 3 million net additions in the quarter. Europe registered 48.6 million accesses (up 8% year over year), with the mobile customer base growing 7.3% year over year to 43.5 million.

Outlook

Telefonica has reaffirmed its financial guidance for 2009 as it expects continued increases in consolidated revenues with annual OIBDA growth projected in the range of 1 - 3%. Annual operating cash flow growth is expected in the range of 8 - 11%. Capital expenditure for 2009 is projected below €7.5 billion (US$10.2 billion), lower than 2008 level, as the company is increasingly focused on reducing spending to improve cash flow generation.

The company remains committed to expanding its 3G wireless business as it has reportedly begun a commercial roll-out of its HSPA+ technology based 3G mobile broadband network in Spain that offers peak downlink speeds of 21 megabits per second. Telefonica is also set to conduct 4G network trials in six countries across Europe and Latin America during the next six months.

Telefonica has expanded its handset portfolio with the recent launch of Palm Inc’s (PALM) Pre smartphone in the UK, Spain, Ireland and Germany. The company is also aggressively pursuing expansion initiatives into other emerging markets as it recently strengthened its foothold in China through an increased stake holding in China Unicom (CHU).

The company’s dominant position in the Spanish telecom market, attractive growth prospects in Latin America and healthy dividend payouts remain positive factors for investment considerations. However, we remain cautious with regard to Telefonica’s declining wireline business, aggressive acquisition strategy and highly leveraged balance sheet.
Read the full analyst report on "TEF"
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Zacks Investment Research

DrStockPick.com Stock Report! 11/12/09, MON, TAXS, ISYS, FCS, ENOC, DNAB

Dr. Stock Pick — Thu, 12 Nov 2009 15:51:07 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday November 12, 2009 DrStockPick.com Stock Report! ************************************************************** Monsanto Company (NYSE: MON) has completed regulatory submissions to the U.S. Department of Agriculture and U.S. Food and Drug Administration in support of the Vistive III soybean trait. This second-generation product builds on Monsanto’s existing Vistive [...]

Zacks Analyst Blog Highlights: Progressive Corporation, Allstate Corp., Infinity Property and Casualty Corp., State Auto Financial Corp. and Monsanto Company – Press Releases

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

For Immediate Release

Chicago, IL – November 12, 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: Progressive Corporation (PGR), Allstate Corp. (ALL), Infinity Property and Casualty Corp. (IPCC), State Auto Financial Corp. (STFC) and Monsanto Company (MON).

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Here are highlights from Wednesday’s Analyst Blog:

Progressive’s Income Falls

Auto insurer Progressive Corporation’s (PGR) income for October fell to 16 cents per share compared with 22 cents in the year-ago period. Though the company has posted a growth in premium writings, realized gains were lower in the quarter compared to the year-ago quarter.

The company, which reports earnings on a monthly basis, disclosed an income of $106.7 million, down from $145.0 million in the prior-year period.

Progressive’s net premiums written increased 3% year-over-year to $1.3 billion. The company recorded a pre-tax investment gain of $20.0 million, compared with $88.4 million in the year-ago quarter. Combined ratio, which reflects the percentage of premiums paid out as claims and expenses, improved to 91.6% from 93.2% recorded in the year-ago period.

Policies in force (PIF) were good in Personal Auto and Special Lines, which were up 5% and 3% year-over-year, respectively. In Personal Auto, Direct Auto reported a 13% growth in PIF while Agency Auto was flat year-over-year.

However, growth remains a challenge at Progressive’s Commercial Auto business, which was down 5% year-over-year. This line continues to be negatively impacted by the downturn in the economy, primarily in the housing and construction sectors. Combined with this, increased competition has added to its woes.

Progressive’s recurring pre-tax investment yield was 3.7% year-to-date, versus 4.8% reported in the year-ago comparable period. Reported book value was $8.34 per share at Oct 31, 2009, up from $8.13 at Sep 30, 2009, and $7.24 at June 30, 2009. Return on equity on a trailing 12-month basis was 18.7%. During October, Progressive repurchased 2.3 million shares at an average price of $16.38.

As of Oct 31, 2009, Progressive has invested 18% of its portfolio in Group I securities that include common equities, redeemable and non-redeemable preferred stocks, and non-investment-grade and non-rated fixed-maturity securities. In early November, approximately $300 million of its securities were reallocated into common equities.

Like Progressive, other auto insurance providers such as Allstate Corp. (ALL), Infinity Property and Casualty Corp. (IPCC) and State Auto Financial Corp. (STFC) have experienced the severe impact of the weak economy, which has significantly hampered consumers' confidence and their ability to purchase auto insurance policies. Additionally, the U.S. auto insurance industry has been subject to unusually high expenses due to fraudulent activities.

Monsanto Confirms Guidance

Monsanto now anticipates its new Genuity SmartStax corn seed will launch on more than 4 million acres in 2010, compared to its previous expectation of 3 million to 4 million acres. As a part of the accelerated adoption of Genuity SmartStax, the company unveiled a new portfolio of product upgrades for key U.S. corn segments.

For the Genuity Roundup Ready 2 Yield platform in U.S. soybeans, Monsanto increased its launch-year expectation for 2010 to 8 - 10 million acres, compared to its previous projection of 7 - 8 million.

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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).

GOL Posts Encouraging Results – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 21:29:17 +0000

GOL Linhas Aereas Inteligentes S.A. (GOL) has announced encouraging results for the third quarter of 2009. The company posted net income of R$77.9 million, with a net margin of 5.2%, versus a net income of R$353.7 million in the previous quarter and a net loss of R$510.7 million in the same period of 2008.

Reflecting the optimization of its cost structure and the focus on more profitable markets, GOL's operating results were positive for the fifth consecutive quarter, totaling R$99.1 million, with an operating margin of 6.6%.

The EBITDAR was R$298.7 million with a margin of 20.0% versus R$258.8 million in the previous quarter (18.6%) and R$253.7 million (14.2%) in the same quarter of previous year.

During the quarter, GOL announced a global share offering designed to strengthen its financial position and reclaim its status among the most competitive airlines in the world, with a cash position of more than 20% of net revenue. The offering was successfully concluded on Oct 19, having raised R$627.1 million from the issue of 38.0 million shares at R$16.50 per share. In addition, a further 5.2 million preferred shares were sold at the same price through an over-allotment option. As a result, GOL's free float increased from 44.5% of preferred stock to 70.5% and from 22.2% of total capital to 35.3%.

GOL remains well positioned to capitalize on the growth of discount air travel in Brazil and the rest of Latin America, given its strong market position and efficient operations. Favorable trends in fuel prices and exchange rates are also benefiting the company's outlook.

Although competitive pressures and the impact of the global financial crisis are a source of concern, GOL's position is strong. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.
Read the full analyst report on "GOL"
Zacks Investment Research

Brazilian Airlines Flying Higher – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 20:28:54 +0000

Earlier this week, LAN Airlines S.A. (LFL) and its subsidiaries released its preliminary monthly traffic statistics and punctuality indicators for October. Passenger traffic rose 15.7% year over year while capacity jumped 10.1%. Its load factor increased 3.9 points to 80.2%.

International passenger traffic accounted for almost 69% of total passenger traffic, with the rest coming from domestic passengers.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 14.1% and international passenger traffic rose 16.5%. Domestic capacity increased 8.6% and international capacity increased 10.8%. International capacity was mainly driven by a surge in operations in Europe and certain regional routes.

In line with the global decline in import and export markets cargo traffic fell 6.2% mainly due to the slowdown in import and export markets in Latin America, as well as the reduction of salmon exports from Chile. In line with the decrease in demand, capacity fell 4.8%. The cargo load factor reached its highest level this year at 70.7%.

The company’s near-term outlook is not as bright as it was a few months ago primarily due to the international economic crisis. However, we believe Chile will perform reasonably during 2009.

In fact, the Chilean Government has already announced a $4 billion economic stimulus package that represents 2.8% of the country's GDP. The plan will be funded by the country's sovereign wealth fund. As the most organized and developed economy in Latin America, Chile is now capable of pursuing a truly anti-cyclical policy.

The company accounts for more than one half of Chile’s international passenger traffic and nearly three-quarters of its domestic traffic. Moreover, consistent positive results and solid financial and liquidity positions will enable LAN to move ahead with a number of long-term initiatives.
Read the full analyst report on "LFL"
Zacks Investment Research

Monsanto Confirms Guidance – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 18:00:02 +0000

At its investor conference call, Monsanto Company (MON) indicated that it will accelerate launches for its Genuity SmartStax corn and Genuity Roundup Ready 2 Yield soybean products. The company emphasized its growth strategy from 2010 through 2012, which includes three operational imperatives: the conversion to Genuity SmartStax in U.S. corn, the upgradation to the Genuity Roundup Ready 2 Yield platform in U.S. soybeans, and increased penetration in Latin America.

Monsanto now anticipates its new Genuity SmartStax corn seed will launch on more than 4 million acres in 2010, compared to its previous expectation of 3 million to 4 million acres. As a part of the accelerated adoption of Genuity SmartStax, the company unveiled a new portfolio of product upgrades for key U.S. corn segments.

For the Genuity Roundup Ready 2 Yield platform in U.S. soybeans, Monsanto increased its launch-year expectation for 2010 to 8 - 10 million acres, compared to its previous projection of 7 - 8 million.

These launches, along with increased penetration in Latin America, are expected create opportunities for the company to meet its 2012 financial and commercial targets.

Monsanto is committed to doubling its gross profit by 2012 from 2007 levels. The company expects 2012 gross profit of $8.6 - $8.8 billion, including $7.3 - $7.5 billion from the Seeds and Genomics platform.

Monsanto reaffirmed fiscal year 2010 EPS guidance in the range of $3.10 - $3.30. Also, the company is confident of achieving its free cash flow target of $900 million to $1 billion for fiscal year 2010. The Zacks Consensus Earnings Estimate for fiscal 2010 is $3.27.
Read the full analyst report on "MON"
Zacks Investment Research

Nissan Building World’s Cheapest Car – Analyst Blog

Zacks Market Commentaries — Wed, 11 Nov 2009 16:57:35 +0000

Nissan to Build World’s Cheapest Car

Carlos Ghosn, the Chief Executive of the alliance Renault and Nissan (NSANY), has revealed that the company will roll out a small car with its Indian partner, Bajaj Auto, that will be cheaper than any other car in India -- and in the world. The car, which is scheduled for launch in India in 2012, would beat India’s largest automaker Tata Motors’ Nano both in terms of pricing and fuel-efficiency, and become the world's cheapest car.

Presently, Tata Nano is the world's cheapest car. The car has a starting price of about Rs100,000 ($2,150). When Renault and Bajaj started discussing on their "ultra low-cost" car 2 years ago, it has been revealed that the car would have been priced between $2,500 and $3,000. However, at the World Economic Forum meeting in New Delhi, India, Mr.Ghosn announced that the ultra low-cost car would be cheaper than the Nano.

So far, India’s bottom-end motor vehicles market has been well known for motorcycles. After the hearty response to the Tata Nano, automakers around the world realized the huge market potential for small cars in India. Hence the initiative for the world's cheapest car.

Thus, the small car by Renault-Nissan and Bajaj would undoubtedly fuel competition between global automakers for the rapidly growing bottom end of the Indian motor vehicles market. The Indian auto industry markets about 2 million cars per year. Mr. Ghosn expects the number to go up to 6 million in 10 years, factoring in expectations from the ultra low-cost car.

The Renault-Nissan alliance has announced that it would provide technical support to Bajaj, who will design and produce the small car. The alliance has revealed that it is also looking forward to export the car to other emerging markets such as Africa, parts of Asia and Latin America.
Read the full analyst report on "NSANY"
Zacks Investment Research

“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 Pepper Reports Strong Earnings – Analyst Blog

Zacks Market Commentaries — Fri, 06 Nov 2009 18:14:59 +0000

Dr Pepper Snapple Group Inc. (DPS), a leading producer of flavored beverages in North America and the Caribbean, reported strong third-quarter earnings of 59 cents per share, compared to 41 cents in the year-earlier quarter. Excluding the one-time non-recurring items, earnings for the quarter came at 54 cents per share versus 45 cents in the year-ago period.

Bottler case sales volume increased 4% during the quarter year over year with carbonated soft drinks growing 5% and non-carbonated beverage sales up marginally. On a geographic basis, volume sales increased 4% in North America and 9% in Latin America.

Net sales of Beverage Concentrates increased 14% during the quarter due to extensive distribution of Crush-brand. Segment operating profit increased 25% year over year. In the Packaged Beverages segment, net sales decreased 1% with a 1% dip in sales volume. However, segment operating profit increased 42% due to lower packaging and transportation costs and continued operating efficiencies.

During the quarter, Dr Pepper reported a 9% increase in sales volume growth in Latin America Beverages. Segment operating profit, however, remained flat during the quarter largely due to higher selling and distribution costs. The company decreased its corporate and other items expenses to $65 million during the quarter compared to $69 million in the year-ago quarter.

Year-till-date, Dr Pepper generated $701 million of cash from operating activities with a capital expenditure of $218 million. During the first nine months of 2009, the company also repaid $480 million of debt, and had no significant debt maturities before 2011.

For the full year, the company expects reported earnings in the range of $2.12 - $2.16 per share with a 3% - 4% decline in net sales. Excluding non-recurring items, earnings for the year are expected in the range of $1.92 - $1.96 per share.
Read the full analyst report on "DPS"
Zacks Investment Research

Zacks Analyst Blog Highlights: The DIRECTV Group, Inc., AT&T, Comcast Corporation, Dish Network Corp. and Time Warner Cable Inc. – Press Releases

Zacks Market Commentaries — Fri, 06 Nov 2009 12:30:58 +0000

For Immediate Release

Chicago, IL – November 6, 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: The DIRECTV Group, Inc. (DTV), AT&T (T), Comcast Corporation (CMCSA), Dish Network Corp. (DISH) and Time Warner Cable Inc. (TWC).

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 AnalystBlog:

DIRECTV Falls Short of Estimates

The DIRECTV Group, Inc. (DTV) reported revenues of $5.47 billion in the third quarter of 2009.

On a geographical basis, revenues from United States grew 9% to $4.7 billion due to solid subscriber and average revenue per unit (ARPU) growth. The company added 136,000 net subscribers to its customer base in the United States primarily due to the addition of AT&T (T) as a marketing partner and record demand for company’s premium services. ARPU of $85.32 increased 2.1% as programming package price increases, as well as higher service fees for certain services, were partially offset by more competitive promotions for both new and existing customers.

The company’s business in Latin America also demonstrated solid performance, posting a 16% increase in revenues and expanding its customer base to 162,000. This was driven by continued subscriber growth throughout the region, which more than offset the unfavorable impact related to weaker currencies in countries such as Brazil and Argentina.

Operating margin came in at 12.5% compared to 13.2% in the year-ago quarter. Net income came in at $366 million, essentially flat with the year-ago quarter. Earnings per share (EPS) came in at 37 cents, falling short of the Zacks Consensus Estimate of 39 cents, but up from 33 cents reported in the year-ago quarter due to a 12% reduction in average shares outstanding. These were the result of share repurchases made over the last year.

During the quarter, the company repurchased shares worth $943 million. The company also issued $2 billion of additional debt after retiring $583 million of existing debt and paying down $30 million under DIRECTV’s senior secured credit facility. The remaining outstanding $327 million of senior notes was repurchased in October 2009.

The company generated cash $1.1 billion of cash from operations. Free cash flow came in at $643 million. As of September 30, 2009, the company has cash and equivalents of $3.3 billion and long-term debt of $7.1 billion.

The DIRECTV Group is the world’s leading provider of digital television entertainment services. The company provides digital television service to more than 18.4 million customers in the United States and over 6.1 million customers in Latin America. DirecTV has subsidiaries in Brazil, Mexico and other countries in Latin America. Primary competitors for the company include Comcast Corporation (CMCSA), Dish Network Corp. (DISH) and Time Warner Cable Inc. (TWC).

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DIRECTV Falls Short of Estimates – Analyst Blog

Zacks Market Commentaries — Thu, 05 Nov 2009 21:44:41 +0000

The DIRECTV Group, Inc. (DTV) reported revenues of $5.47 billion in the third quarter of 2009.

On a geographical basis, revenues from United States grew 9% to $4.7 billion due to solid subscriber and average revenue per unit (ARPU) growth. The company added 136,000 net subscribers to its customer base in the United States primarily due to the addition of AT&T (T) as a marketing partner and record demand for company’s premium services. ARPU of $85.32 increased 2.1% as programming package price increases, as well as higher service fees for certain services, were partially offset by more competitive promotions for both new and existing customers.

The company’s business in Latin America also demonstrated solid performance, posting a 16% increase in revenues and expanding its customer base to 162,000. This was driven by continued subscriber growth throughout the region, which more than offset the unfavorable impact related to weaker currencies in countries such as Brazil and Argentina.

Operating margin came in at 12.5% compared to 13.2% in the year-ago quarter. Net income came in at $366 million, essentially flat with the year-ago quarter. Earnings per share (EPS) came in at 37 cents, falling short of the Zacks Consensus Estimate of 39 cents, but up from 33 cents reported in the year-ago quarter due to a 12% reduction in average shares outstanding. These were the result of share repurchases made over the last year.

During the quarter, the company repurchased shares worth $943 million. The company also issued $2 billion of additional debt after retiring $583 million of existing debt and paying down $30 million under DIRECTV’s senior secured credit facility. The remaining outstanding $327 million of senior notes was repurchased in October 2009.

The company generated cash $1.1 billion of cash from operations. Free cash flow came in at $643 million. As of September 30, 2009, the company has cash and equivalents of $3.3 billion and long-term debt of $7.1 billion.

The DIRECTV Group is the world’s leading provider of digital television entertainment services. The company provides digital television service to more than 18.4 million customers in the United States and over 6.1 million customers in Latin America. DirecTV has subsidiaries in Brazil, Mexico and other countries in Latin America. Primary competitors for the company include Comcast Corporation (CMCSA), Dish Network Corp. (DISH) and Time Warner Cable Inc. (TWC).
Read the full analyst report on "DTV"
Read the full analyst report on "T"
Read the full analyst report on "CMCSA"
Read the full analyst report on "DISH"
Read the full analyst report on "TWC"
Zacks Investment Research

News Corp. Tops Zacks Estimate – Analyst Blog

Zacks Market Commentaries — Thu, 05 Nov 2009 17:05:42 +0000

News Corp. (NWS) recently reported its first quarter results. Earnings of 22 cents a share surpassed the Zacks Consensus Estimate of 17 cents and climbed 10% from 20 cents posted in the prior-year quarter.

Total revenues tumbled 4.1% year on year to $7,199 million due to fall in Television (down 7.7%), Direct Broadcast Satellite Television (down 4.3%), Newspapers and Information Services (down 17.7%), Book Publishing (down 1.6%) and Other (down 44.4%) segments, offset by rise in Filmed Entertainment (up 20.8%), Cable Network Programming (up 10.5%) and Integrated Marketing Services (up 3.1%) segments.

However, significant cost-cutting initiatives taken by management and robust performance at Filmed Entertainment and Cable Network Programming segments have boosted the operating income by 9.3% to $1,042 million. Management expects fiscal 2010 operating income to increase within a high-single digit to low double-digit percentage range.

Filmed Entertainment posted a record first quarter operating income of $391 million, up 55.8% led by the box-office receipts of more than $880 million till date, due to the worldwide theatrical success of Ice Age: Dawn of the Dinosaurs.

Operating income at Cable Network Programming jumped 41.4% to $495 million due to rise in contributions from FOX News Channel, the Fox International channels, STAR, the Regional Sports networks and Big Ten Network.

News Corporation, which owns The Wall Street Journal, New York Post, Times of London, Sydney Daily Telegraph, and The Australian posted a decline of 81.3% to $25 million in operating income at its Newspapers and Information Services segment due to fall in advertising revenue.

Television segment operating income fell 54.2% to $38 million due to a fall in contributions from the Fox Television Stations and FOX Broadcasting Company on account of the slump in the advertising demand, mainly in the automotive and movie segments.

Direct Broadcast Satellite Television segment operating income tumbled 22.4% to $128 million due to increased programming costs. Operating income at the Integrated Marketing Services segment climbed 7.4% to $73 million.

The Book Publishing segment posted operating income of $20 million, compared to an operating income of $3 million delivered in the prior-year quarter.

News Corp. is a diversified media company with operations carried in the United States, the United Kingdom, Continental Europe, Australia, Asia and Latin America.
Read the full analyst report on "NWS"
Zacks Investment Research

Teva Reports Strong Quarter – Analyst Blog

Zacks Market Commentaries — Wed, 04 Nov 2009 20:30:40 +0000

Teva Pharmaceutical Industries Ltd. (TEVA) reported earnings of 89 cents in the third quarter of 2009, up 16% from the year-ago period and a cent above the Zacks Consensus Estimate. Strong sales of Copaxone and in the respiratory business helped drive earnings in the reported quarter.

Net sales increased 25% to $3.55 billion, with the Barr acquisition contributing to sales across different geographical segments. The strengthening U.S. dollar adversely impacted net sales by $160 million or 6%.

Revenue performance across key business segments was mixed. While the Pharmaceuticals Sales segment posted growth of 27% with revenues coming in at $3.4 billion, the active pharmaceutical ingredients (API) segment reported an 8% decline in growth with sales coming in at $136 million.

Pharmaceutical segment sales were driven by strong performances in the North American, European and International segments. The launch of generic versions of Ortho Tri-Cyclen Lo and Eloxatin and continued strong sales from existing products like generic versions of Adderall XR, Yasmin and Protonix helped North America sales grow 34% to $2,164 million.

Meanwhile, key branded product Copaxone continued to impress with global in-market sales increasing 38% to $776 million. While U.S. in-market sales increased 53% to $540 million, ex-U.S. in-market sales totaled $236 million, up 12%. Unfortunately, Mylan (MYL) is looking to launch a generic version of Copaxone.

Other products/segments that contributed to growth were Azilect at $64 million, up 39%, women’s health business at $103 million, up 10%, and the global respiratory business at $243 million, up 37%.

We expect the North American pharmaceutical segment to continue posting strong sales going forward. The company has a strong pipeline of products, and as of October 23, 2009 had 210 abbreviated new drug applications (ANDAs) awaiting U.S. Food and Drug Administration (FDA) approval. These represent more than $113 billion in branded sales. About 136 of these ANDAs are paragraph IV challenges including approximately 83 first to file opportunities representing more than $54 billion in branded sales. The launch of Effexor XR in July 2010 should help drive sales.

Pharmaceutical sales in Europe increased 15% to $787 million, mainly due to strong generic sales in Germany, Spain and Poland. International pharmaceutical sales grew 14% to $463 million, driven by increased sales in Russia, Croatia, Israel and certain countries in Latin America.

Gross margin improved to 58.2% (up from 54% in the year-ago period) thanks to higher contributions from innovative and branded products, including Copaxone, ProAir, Azilect and women's health products, and improved gross margins of the U.S. generics base business.

Research & Development expense remained relatively unchanged at $195 million. We expect R&D expense to increase as the company delivers on its plans to double its generic R&D output from its 2007 level by 2012. Teva also intends to expand R&D activity in biogenerics and its innovative and branded franchises.

Selling and Marketing (S&M) expenditures (excluding amortization of purchased intangible assets) increased 36.5% to $662 million mainly due to higher royalty payments on higher Copaxone revenues and the addition of Barr's business which is characterized by higher S&M expenses.

General and Administrative (G&A) expenditures totaled $212 million, or 6.0% of sales, for the third quarter, compared with $156 million, or 5.5% of sales, in the comparable quarter of 2008.

Based on its performance in the first nine months of 2009, Teva raised the lower end of its previously issued earnings guidance by 10 cents. The company now expects earnings in the range of $3.30 to $3.40, up from the previous range of $3.20 to $3.40. For 2010, the company expects earnings in the range of $4.40 and $4.60.
Read the full analyst report on "TEVA"
Read the full analyst report on "MYL"
Zacks Investment Research

SAP AG Beats Zacks Consensus – Analyst Blog

Zacks Market Commentaries — Tue, 03 Nov 2009 21:15:25 +0000

SAP AG (SAP) reported third quarter of 2009 net income from continuing operations of 60 cents per share, compared to the Zacks Consensus Estimate of 58 cents.

U.S. GAAP software and software-related service revenues were €1.94 billion (previous year: €1.99 billion), a decrease of 3%. U.S. GAAP total revenues were €2.51 billion (€2.76 billion), a decrease of 9%. U.S. GAAP software revenues were €525 million (€763 million), a decrease of 31% (30% at constant currencies).

In the third quarter of 2009, SAP closed major contracts in several key regions including Dagrofa/SuperGros, Prada S.p.A., SeverStal OAO, Surgutneftegaz OAO, Swiss Life AG, and Telefonica, S.A. (TEF) in EMEA; Banco Industrial S.A., ConocoPhillips (COP), Dolby Laboratories (DLB), Fairfax County, Research In Motion Limited (RIMM) and Valero Services Inc. in Americas; and APL Co. Pte. Ltd, Department of Foreign Affairs and Trade, Australia, HDFC Standard Life Insurance Co Ltd, Philippine Long Distance Telephone (PHI), Samchully Co., Ltd. and Taiwan Power Company in the Asia-Pacific Japan region.

U.S. GAAP operating income was €606 million (2008: €614 million), a decrease of 1%. U.S. GAAP operating income was negatively impacted by restructuring charges of €21 million resulting from the previously announced reduction of positions. The third quarter 2009 operating income was also affected by non-recurring items, particularly litigation expenses and profit resulting from reversals of provisions recorded in the accounting for the acquisition of Business Objects. The net effect of these non-recurring items was an increase of operating income by €2 million.

Operating cash flow from continuing operations for the nine month period ended Sep 30, 2009, was €2.38 billion (2008: €1.97 billion), an increase of 21%. Free cash flow was €2.21 billion (2008: €1.73 billion), an increase of 28%. Free cash flow was 29% of total revenues (2008: 21%). At Sept. 30, 2009, SAP had a total group liquidity of €3.04 billion (Dec. 31, 2008: €1.66 billion), which includes cash and cash equivalents, restricted cash and short term investments. At Sep 30, 2009, net liquidity, defined as total group liquidity less bank liabilities, was €925 million.

SAP AG, together with its subsidiaries, develops, markets, and sells enterprise application software products for corporations, government agencies and educational institutions in Europe, the Middle East, Africa, North America and Latin America, and the Asia-Pacific Japan region. Major competitors are Microsoft Corporation (MSFT), International Business Machines Corporation (IBM) and Oracle Corporation (ORCL).
Read the full analyst report on "SAP"
Read the full analyst report on "IBM"
Read the full analyst report on "ORCL"
Read the full analyst report on "MSFT"
Zacks Investment Research

International Opportunities Offer Solid Profit Potential for Those that Take the Long View

QualityStocks — Tue, 03 Nov 2009 20:07:54 +0000

As the world economy begins its journey back, there are emerging market opportunities that were present before the collapse and still remain. The consumer is perhaps the largest opportunity in this regard. As one considers this investing rout, looking at the United States model may well be advised as one considers options and other developing [...]

Ingram Delivers Decent Numbers – Analyst Blog

Zacks Market Commentaries — Tue, 03 Nov 2009 17:49:46 +0000

Ingram Micro (IM) reported third-quarter EPS of 25 cents, exceeding the Zacks Consensus Estimate of 20 cents.

Revenues

The company reported third-quarter revenues of $7.38 billion, down 11.0% on a year-over-year basis and up 12% on a sequential basis. The year-over-year decline in revenue can be attributed to the negative economic environment that prevailed throughout the last one year. Foreign currency translation negatively impacted the year-over-year comparison by approximately 3.0%, but had a positive impact on quarterly comparisons.

The geographic distribution of revenues was as follows. North America reported third-quarter sales of $3.22 billion, down 10.3% year over year but up17.0% sequentially. Europe, Middle East, and Africa (EMEA) region reported revenues of $2.15 billion, down 16% year over year. There is a 6% negative impact of foreign currencies on EMEA revenues on a year-over-year basis. Sales in the Asia-Pacific region were $1.64 billion, down 3.5% from $1.70 billion reported in the third quarter of 2008. The decline in sales may be attributed to negative translation impact of regional currencies of approximately five percentage points. Latin America sales were $373 million, down 13% from $430 million reported a year ago. Latin America sales declined as a result of negative translation impact of relatively weaker regional currencies.

Operating Results

Third quarter 2009 gross margin was 5.44%, a decrease of 3 basis points from 5.47% in the 2008 third quarter. This decline in gross margin may be attributed to tough economic conditions that prevailed throughout the past one year.

Operating expenses for the third quarter was $338.7 million (4.59% of total sales), down 11.0% from $380.4 million reported in the year-ago quarter. The translation impact of relatively weaker foreign currencies contributed approximately $12 million to the overall year-over-year decline in operating expenses. Total operating income was $63.2 million (0.86% of sales), down 12.8% from $72.5 million (0.87% of sales).

The company reported net income of $42.3 million, or 25 cents per share for the third quarter, which includes costs of approximately 4 cents per share related to expense-reduction programs. This compares to the third quarter 2008 net income of $46.4 million, or 27 cents per share, which also included 2 cents per share of costs related to expense-reduction programs.

Balance Sheet

The company exited the quarter with cash and cash equivalents of more than $1.2 billion, an increase of $466 million from year-end. Total debt balance at the end of the quarter was $436 million, a decrease of $43 million from year-end. The company incurred total capital expenditure of $10.3 million and had an inventory balance of $2.2 billion at the end of the quarter.

Guidance

The company did not provide any numerical guidance for the coming quarters but expects year-over-year sales to decline single-digits, on the basis of increased demand and better customer engagement. The company also expects a sequential increase in gross margin and a reduction in operating expense, which is expected to generate an annualized savings of $140 million.

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

Clorox Cleans Up in 1Q – Analyst Blog

Zacks Market Commentaries — Mon, 02 Nov 2009 19:20:50 +0000

The Clorox Company (CLX) reported strong results for the first quarter of fiscal 2010 with earnings of $1.11 per share. Earnings were well above the Zacks Consensus Estimate of 95 cents and up 23.3% year-over-year.

Net sales for the quarter were almost flat year-over-year, declining marginally by 0.8%. The decline was primarily attributable to unfavorable foreign exchange rates, unfavorable product mix and higher trade-promotion spending. These factors were partially offset by the benefit of price increases, especially in the International segment.

Total volume increased 1%, primarily due to higher shipments of disinfecting wipes and bottled salad dressing, which were largely offset by lower shipments of trash bags and the company's exit from its private-label food bags business.

Segment-wise

In the Cleaning segment, sales increased 3% and volumes grew 4%. Volume increase was driven by increased shipments of disinfecting products to meet demand associated with the H1N1 flu pandemic. In addition, increased shipments of all-purpose cleaner and all-time record shipments of toilet bowl cleaners also contributed positively to the top-line. These were partially offset by lower shipments of auto-care products.

In the Household segment sales declined 11% while volumes declined 7%. The segments volume decline was driven by lower shipments of Glad products and the company's exit from the private-label food bags business. These results were partially offset by all-time record shipments of cat litter.

The Lifestyle segment witnessed 3% sales growth and 4% volume growth. The volume growth was primarily driven by the Burt's Bees acquisition. Increased shipments of Hidden Valley bottled salad dressing, due to highly effective marketing, also contributed positively to the top line.

In the International segment, sales grew 4% and volumes grew 3% year-over-year. Volume growth was driven by increased shipments of bleach and other disinfecting products in Latin America driven by increased demand as a result of the H1N1 flu pandemic.

Gross margin expanded 450 basis points (bps) to 45.1% versus 40.6% in the comparable prior-year quarter. The increase was primarily driven by the benefit of lower commodity costs, strong cost savings and price increases. However, the operating margin contracted 53 bps to 12.8% from 13.3% in the prior-year period, primarily attributable higher advertising expenses.

The company had cash and cash equivalents of $237 million and capital expenditures for the quarter amounted to $34 million. Based on the results for the first quarter, the company raised its guidance for fiscal 2010. Annual earnings are now expected to be in the range of $4.05 to $4.20 per share, reflecting a 17% growth over the prior-year period.

Net sales growth for the year is reiterated in the 1% to 2% growth range, while gross margins are expected to improve in the 100 to 150 basis points range.

The company continues to expect that the foreign currency transaction impact will remain high due to currency exchange restrictions and costs in Venezuela.
Read the full analyst report on "CLX"
Zacks Investment Research

Polymer Group, Inc. (POLGA.OB) Acquires Remaining 40% Stake in its Argentinean Joint Venture

QualityStocks — Fri, 30 Oct 2009 19:53:27 +0000

Polymer Group, Inc. reports completion of its transaction to purchase a 40 percent minority stake in Dominion Nonwovens Sudamericana, S.A. (PGI Argentina) from its partner, Guillermo E. Kraves with terms of the transaction undisclosed. PGI Argentina has been operating as a joint venture since 1997. The company is located near Buenos Aires, Argentina and began operations [...]

Avon Reports Weak 3rd Quarter – Analyst Blog

Zacks Market Commentaries — Thu, 29 Oct 2009 22:42:58 +0000

Avon Products Inc. (AVP) reported third-quarter results with earnings of 36 cents per share. Earnings were below the Zacks Consensus Estimate of 39 cents and down 30.8% from 52 cents reported in the prior-year period.

Total revenue declined 3.5% year over year to $2.6 billion, attributable to an 11% negative impact from foreign-currency exchange, which was partially offset by a 5% benefit from volume. The number of active representatives grew 10% during the quarter.

Sales of Beauty products declined 3%, primarily due to the negative impact of foreign exchange and declines across three of the four categories. Skin Care declined 8%, Fragrance declined 4% and Personal Care declined 4%, these were partially offset by a 4% growth in color cosmetics.

In North America, sales fell 8% as units sold declined 5% while active representatives were up 4%. In Latin America, sales grew 5% as units sold rose 10% and active representatives grew 13%.

Revenue in the Western Europe, Middle East & Africa dropped 6%, despite a 22% growth in units sold and 9% growth in active representatives. The decline was primarily due to adverse currency translations along with increased recessionary pressures. Sales in Central and Eastern Europe fell 18% as units sold were flat year-over-year, while active representatives grew 8%. In addition, adverse currency translations also impacted sales.

Quarterly sales growth in Asia Pacific increased 1%, as units sold were up 4% year over year and active representatives rose 6%. Sales in China decreased 11% primarily due to a 19% decline in units sold. However, active representatives for the quarter increased 52%.

Gross margin for the quarter contracted 56 basis points (bps) to 62.6% versus 63.1% in the comparable prior-year quarter. Productivity gains, benefits from the company's Strategic Sourcing Initiative, and price increases were fully offset by 140 basis points of unfavorable foreign-exchange impact. The operating margin also declined 110 bps to 10.1% from 11.2% in the comparable prior-year quarter.

Year-to-date, net cash provided by operating activities was $247 million. At the end of the quarter, Avon's total debt increased by $272 million from the year-end level, to $2.8 billion.

Avon has six ongoing restructuring programs targeting a total of $1.08 billion in annualized cost savings. Its major programs include the 2005 Turnaround Plan (targeting $300 in cost savings), PLS - Product Line Simplification initiative ($200 million), SSI - Strategic Sourcing Initiative ($250 million) and 2007 Additional Restructuring Plan ($130 million).

Recently, the company rolled out a New Restructuring Plan expecting to save $200 million in costs upon full implementation by 2013. The new program targets increasing levels of efficiency and organizational effectiveness across Avon’s global operations, primarily in three areas: global supply chain, sales support and a reduction of overhead.
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Colgate Reports Modest Earnings – Analyst Blog

Zacks Market Commentaries — Thu, 29 Oct 2009 21:23:42 +0000

Colgate Palmolive Company (CL) reported results for the third quarter of 2009 with earnings of $1.12 per share, which was a penny above the Zacks Consensus Estimate of $1.11. Earnings were up 13.1% year-over-year, driven by effective price implementation and ongoing aggressive cost savings program.

Net sales for the quarter were flat year-over-year declining marginally by 0.3% to $3.9 billion as unit volume increased 1.5% and pricing contributed 5.0%. This was partially offset by negative foreign exchange translation of 6.5%. Organic sales (excluding foreign exchange, acquisitions and divestitures) increased 7.0% in the quarter.

North American sales increased 3.0% driven by 1.5% pricing and 5.0% unit volume growth, partially offset by 0.5% negative currency translations. In Latin America, sales grew 5.0% as unit volume increased 3.0% driven by solid gains in Venezuela which were partially offset by an 11.0% negative foreign exchange impact.

In Europe/South Pacific, sales declined 5.5%; however, unit volume increased 2.5% as volume gains in U.K. and Greece, were more than offset by the declines in France, Germany the U.K., Denmark, Greece, Portugal and the GABA business. Sales in Greater Asia/Africa declined 3.0% while unit volume declined 2.5% as volume gains in India, Thailand and Turkey were more than offset by declines in Russia, the Philippines, South Africa and the Ukraine.

Sales in the Hill’s Pet Nutrition business grew 1.5%, however unit volume declined 2.5% and foreign exchange had a negative impact of 0.5%, which was partially offset by a 4.5% increase in pricing. Demand was strong for existing products such as Science Diet Culinary Creations feline products and the expanded line of Science Diet Simple Essentials Treats Canine.

Gross margins expanded 313 basis points (bps) to 59.2% from 56.1% in the prior-year period driven by benefits of restructuring activities and pricing. The operating margin also increased 333 bps to 22.2% versus 19.8% in the prior-year quarter, driven by a 30 bps decline in advertising. Capital expenditures for the first nine months of 2009 were $347 million.

Year-to-date net cash provided by operations increased 34% to $23.7 billion, due to efficient working capital management, especially a reduction in receivable days outstanding. The company has a debt-to-total-capitalization ratio of 52.5%.

Concurrent with the earnings release, management provided the outlook for the remainder of fiscal 2009. Management expects continued improvement in gross margins for the rest of the year, due to moderation in commodity costs and benefits from pricing and cost reduction programs.
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AMX Tops, Subscriber Growth Dips – Analyst Blog

Zacks Market Commentaries — Thu, 29 Oct 2009 16:45:00 +0000

America Movil (AMX) reported results for third-quarter 2009 with earnings per ADS of 86 cents edging past the Zacks Consensus Estimates of 85 cents while increasing 22.6% from the year-ago earnings per ADS of 70 cents. Net profit surged 50.6% year over year to 18.7 billion pesos (US$1.4 billion) or 0.57 pesos per share. This healthy growth was fuelled by higher revenue and lower financing costs which fell 82.5% year over year due to gains stemming from favorable exchange rate swings.

Revenue & EBITDA Latin America’s largest wireless carrier continues to register a double-digit revenue growth as evident from the 16.9% year over year increase in consolidated revenue in the quarter to 99.8 billion pesos (US$7.5 billion), driven by 19.5% growth in service revenue. Revenue growth was supported by healthy business momentum across 3G wireless and broadband Internet businesses.

Consolidated EBITDA for the quarter was 40.4 billion pesos (US$3.1 billion), up 15.9% year-over-year, while EBITDA margin equated to 40.5%, stable year over year. Subscriber Trend Healthy earnings for the quarter was partially offset by a deceleration in subscriber growth, especially due to lackluster contribution from the core Mexican operation as overall economic conditions remain challenging.

The company registered 4 million new wireless subscriber additions in the quarter, reflecting a sharp decline from 7.3 million reported the year-ago quarter. Total wireless subscriber base increased to 194.3 million (up 12.6% year over year) with the Brazilian and US operations being the major contributors. Brazil continues to lead the growth with 1.8 million net additions followed by US with 712,000 and Mexico with 280,000 additions.

The economic recovery in Brazil boosted strong subscriber accretion in the quarter. Fixed-line customer base reached 3.8 million. Results by Key Markets Mexico, America Movil’s largest market, posted 5.2% year over year growth in revenues that reached 35.6 billion pesos (US$2.7 billion) driven by strong data revenue growth. Mexican ARPU (average revenue per user) declined marginally year over year while churn (customer switch) remained flat.

Revenue from the Brazilian operation, the other major market, increased 4.6% year over year while churn increased from the year-ago quarter. Brazilian ARPU fell 10.1% year over year. Revenue for the Argentina, Paraguay and Uruguay cluster increased 18.4% year over year while ARPU and churn both increased from the year ago quarter. The company’s US operation (Tracfone) posted 13.8% year over year revenue growth while churn increased from the prior year quarter.

Revenue increased year over year across Chile , Ecuador and Peru while declining in Columbia and Panama cluster. Opportunities & Challenges America Movil remains committed to improve service offerings to its customers as the company continues to invest aggressively to expand its GSM based cellular networks in Latin America.

Momentum is also building up for 3G services as increased penetration of 3G data services catapulted data revenue growth by 58% in the third quarter. The company’s 3G services now cover 70% of the population in its coverage markets in Latin America . Leveraging its 3G network, the company launched iPhone 3GS in July 2009 in six countries across Central and South America.

America Movil’s 3G network has already covered 16 major Mexican cities with 60% penetration of the population expected through 2009. America Movil’s prospects in wireless are also likely to be boosted by its low priced prepaid wireless services (“Straight Talk") which is being sold through Wal-Mart (WMT) in the US.

The company’s Tracfone US subsidiary is currently offering a $45 monthly unlimited calling plan which is aggressively positioned against the plans offered by other major low-cost carriers such as MetroPCS (PCS), Leap Wireless (LEAP) and Sprint (S). Although America Movil has a commanding position in the Mexican wireless market, it is gradually losing market share due to stiff competition from the Spanish telecom giant Telefonica (TEF).

Additionally, America Movil remains significantly challenged by the intensely competitive Brazilian wireless market. While we remain encouraged by the company’s sustainable earnings power, consistent revenue growth and increased penetration of 3G data services, we are concerned about the competitive and regulatory issues across Latin America which may continue to constrict subscriber growth levels moving forward.
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Kellogg Beats, Raises Guidance – Analyst Blog

Zacks Market Commentaries — Thu, 29 Oct 2009 14:30:01 +0000

Kellogg Company (K) reported strong third-quarter results with earnings of 94 cents per share. Earnings were well above the Zacks Consensus Estimate of 83 cents and up 4.4% year over year, despite ongoing cost pressures and the challenging economic environment.

Quarterly net sales were almost flat year-over-year declining marginally by 0.3% to $3.3 billion as the benefits from price/mix (+2.4%) and acquisitions (0.1%), tonnage (+0.7%) were fully offset by adverse currency translations (-3.5%). Internal sales, excluding impact of currency translations, increased 3.0%.

In North America, net sales increased 1.5% (internal growth 2%) driven by Cereals (+2%), Snacks (3%), which was partially offset by declines in Frozen (-3%) and Specialty categories (-3%).

Kellogg’s international operations experienced a net sales decline of 4% (internal sales increased 6%). Internal sales for Kellogg International comprise Latin America's net sales growth of 9%, Asia Pacific's growth of 4% and Europe ’s growth of 5%.

Gross margin for the quarter expanded 127 basis points (bps) to 43.9% versus 42.7% in the comparable prior-year quarter. The increase was primarily due to benefits of pricing and moderation of commodity costs. The operating margin for the quarter also expanded 109 bps to 17.3% versus 16.2% in the prior-year quarter.

Kellogg’s continues to deliver strong cash flow of $978 million year-to-date, including an unfavorable impact from foreign exchange. The company has a debt-to-capitalization ratio of 70%.

Based on the performance year-to-date, management has raised its guidance. Earnings growth is now expected in the range of 10% and 12% on a currency-neutral basis. Previous guidance was 8% to 10%. This excludes the effects of foreign-currency translation.

The company re-affirmed its internal sales guidance of 3% - 4% for the year, which is above the company's long-term targets. Gross margins are expected to increase by approximately 100 basis points, reflecting strong productivity gains and moderating inflation. Management raised guidance for operating profit growth to a range of 8 - 10%, above the long-term target, despite significant re-investment in advertising and up-front costs.

Management also provided an outlook for fiscal 2010. For fiscal 2010, management anticipates internal net sales growth of 2% - 3%, in line with the long-term targets, reflecting lower pricing year-over-year. Up-front costs for 2010 are expected to decline to a range of 14 cents to 16 cents per share, which is expected to positively impact operating profit and net earnings.

Internal operating profit growth is expected in the high single-digit range, above the long-term annual targets. Based on this higher level of forecasted profit growth for 2010, the company further expects fiscal 2010 earnings growth to be in the range of 10 - 12% on a currency-neutral basis. The guidance reflects a second consecutive year of growth above its long-term annual targets.
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eDoorways Corp. (EDWY.PK) Provides Insight Into “LEARN” Doorway and eC Device, Reports Successful Presentation During the ISTEC XVIIth General Assembly

QualityStocks — Thu, 29 Oct 2009 13:55:40 +0000

eDoorways Corp. today discussed the “LEARN” doorway and demoed its eC Device at the Ibero-American Science and Technology Education Center’s (ISTEC) XVIIth Annual General Assembly on the Campus of the University of New Mexico (UNM) in Albuquerque, New Mexico, USA. The presentation made earlier this week was so popular that the 200 people in attendance [...]

Bayer Disappoints – Analyst Blog

Zacks Market Commentaries — Wed, 28 Oct 2009 18:19:07 +0000

Bayer (BAYRY) announced its third quarter results yesterday. Revenues of the group recorded a 7% decline to €7.39 billion from €7.94 billion. The company’s earnings per share from continued operations were €0.78, compared to €0.85 in year-ago period.

Bayer operates through three major segments: Healthcare, accounting for 53.24% of total revenues in the third quarter of 2009; CropScience (15.4%), and Material Science (27.5%) with the remaining 4% coming from other items. While Healthcare segment revenues improved marginally by 3.5%, both cropscience and Material Science fell 8.6% and 20%, respectively.

The Healthcare segment recorded revenues of €3.9 billion compared to €3.8 billion in the corresponding period last year. Both the divisions of Healthcare – pharmaceuticals and consumer health contributed to the growth of the Healthcare segment. Bayer’s primary market, Europe – accounting for 39% of its Healthcare revenues – declined 3%, compared to the year-ago period. The other markets of North America, Asia Pacific and Latin America, Africa and Middle East grew 4.8%, 21.2% and 1.6%, respectively.

The 3% increase in pharmaceutical sales was driven primarily by general medicine, specialty medicine and diagnostic imaging partially offset by women’s healthcare. Other than Betaferon, Bayer’s other best selling drugs including Yasmin, Kogenate, Adalat and Nexavar recorded an improvement in sales.

Moreover, the consumer health subgroup grew 4.5% to €1.4 billion driven by increased sales of its three divisions – consumer care (3.2%), medical care (6.8%) and animal health (5.5%).

Although we are pleased to see the strong performance of the Healthcare segment, we remain concerned about the disappointing performance of CropScience and Material Science. Revenues from both the divisions of crop science – crop protection and environmental science and bio science declined 8.8% and 7.7% respectively due to lower prices of key crop commodities, adverse weather patterns and higher trade inventories of crop protection products.

Among the three segments of Bayer, Material Science was the worst performing segment during the quarter. Revenues from this segment recorded revenues of €2 billion, down 20% from €2.5 billion in the year-ago period due to a decline in selling price of the products as well as lower overall volume. All the four regions recorded a drop in sales.

Bayer had cash and cash equivalents of €2.6 billion at the end of third quarter, up from last year’s €2.3 billion. Gross cash flow was unchanged from the prior year period to €1.2 billion, while net cash flow rose 22.9 % to €1.5 billion because of improvements in working capital at Healthcare and crop science. The company reduced its net financial debt to €10.7 billion at the end of the reported quarter, from €11.7 billion at the end of June 2009.

Based on the third quarter results, Bayer still predicts a wide variation among the subgroups in terms of performance for 2009. For Healthcare the company continues to expect a positive trend in the current year, with growth in sales and EBITDA before special items. Despite the deterioration in the market environment for CropScience, the company expects this segment to increase compared with 2008. The company anticipates a decline in Material Science revenues in the fourth quarter.

In this backdrop, Bayer expects to post total sales in the range of €31–32 billion. We believe growth in the Healthcare business is particularly important for Bayer as the company has shifted its focus to this area, which accounts for more than 50% of total revenues. We expect Material Science business to pick up in 2010 when the world economy recovers from current recession.

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NCR Falls Short of Expectations – Analyst Blog

Zacks Market Commentaries — Tue, 27 Oct 2009 20:02:31 +0000

NCR Corporation’s (NCR) third quarter EPS of 19 cents fell short of the Consensus Estimate of 24 cents.

Revenue
NCR reported revenue of $1.14 billion in the quarter, 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. Year-over-year revenue was impacted by global economic conditions and the resultant effect on the global financial services, retail and hospitality industries.

The company reports results according to the various geographic segments. Accordingly, the Americas reported revenues of $514.0 million, a decrease of 17.0% from the year-ago quarter. This decrease was primarily due to lower product sales to customers in the financial services and hospitality industries in the US, Caribbean and Latin America.

In the Europe, Middle East, Africa (EMEA) region, revenues were $390.0 million, a decrease of 22.0% from the year-ago quarter. The decrease in revenue was primarily driven by the reduction in product sales to customers in financial services across the region.

The Asia-Pacific and Japan (APJ) region reported revenues of $231.0 million, a decrease of 10.0% from the year-ago quarter. This decline may be attributed to lower sales in the financial services industry as well as a three percentage point negative impact of foreign currency translation.

Operating Results
GAAP gross margin for the quarter was 19.7%, versus 22.5% in the year-ago quarter. Gross margin was negatively impacted by lower product sales and unfavorable mix, offset by the benefit from manufacturing realignment and cost reduction initiatives.

Income from operations was $29.0 million in the quarter and included $41 million of pension expense. This compares to $100.0 million of income from operations in the third quarter of 2008, which included $5.0 million of pension expense and $12.0 million of costs related to organizational realignment activity. Excluding these items and pension expense, non-GAAP income from operations decreased to $70.0 million in the quarter compared to $117.0 million in the third quarter of 2008. This translates to non-GAAP operating margin of 6.2% for the quarter, a significant decline from 8.5% reported in the year-ago quarter.

Net income from continuing operations was $15.0 million or 9 cents per diluted share versus net income of $82.0 million or 49 cents per diluted share in the year-ago quarter. Income from continuing operations for the quarter included an after-tax impairment charge of $11.0 million related to an equity investment and an after-tax litigation charge of $4 million, totaling 10 cents per diluted share. Income from continuing operations in the third quarter of 2008 included a $10 million (after-tax) gain, or a 6 cent gain per diluted share, resulting from organizational realignment activity. Excluding these items, non-GAAP income from continuing operations was 19 cents per diluted share versus 55 cents per diluted share in the year-ago quarter. Including the results of discontinued operations net of tax, the company reported GAAP net income of $15.0 million or 9 cents per diluted share versus net income of $80.0 million or 48 cents per diluted share in the year-ago quarter.

Balance Sheet
NCR generated $51.0 million of cash from operating activities during the reported quarter compared to $157.0 million in the year-ago period. Capital expenditures of $53.0 million in the quarter increased from $37.0 million in the year-ago period.

NCR generated $2.0 million of free cash flow (cash from operations less capital expenditures) in the quarter, compared to free cash flow of $120.0 million in the third quarter of 2008. NCR ended the quarter with $419.0 million in cash and cash equivalents, a $12.0 million increase from the $407.0 million in the previous quarter.

Guidance
Given the limited near term visibility, NCR expects full-year 2009 revenues to be in the range of 12.0% to 14.0% lower on a constant currency basis compared with 2008. Based on average exchange rates for September, this would translate to reported revenues being down in the range of 14.0% to 16.0% for the year. Including the $60.0 million investment in the entertainment portfolio in 2009, which results non-pension operating income or NPOI (excluding the impact of pension expense on operating income), the company expects its full-year 2009 NPOI to be in the range of $270.0 million to $290.0 million and non-GAAP earnings from continuing operations in the range of 45 cents to 55 cents per diluted share. The 2009 EPS guidance includes pension expense of $145 million compared to 2008.
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Willis Group Ahead of Estimates – Analyst Blog

Zacks Market Commentaries — Tue, 27 Oct 2009 14:21:01 +0000

Willis Group Holdings Limited (WSH) reported third-quarter earnings of 46 cents per share. Excluding certain items, adjusted earnings were 53 cents. Results were significantly ahead of the Zacks Consensus Estimate of 38 cents. Results were also far ahead of the prior-year period’s earnings of 25 cents and adjusted earnings of 32 cents.

Results reflected strong contribution from the Hilb Rogal & Hobbs Company (HRH) acquisition. Also, on an organic basis, Willis reported decent growth in International and Global operations, though it was partly offset by a fall in organic commissions and fees in North America.

The company continues to experience the benefits from its “Shaping Our Future" initiatives and strong client retention in the midst of a soft market. These positives offset the reduction in investment income and increased expenses.

Net earnings from continuing operations increased to $78 million or 46 cents per share from $36 million or 25 cents a share in the year-earlier quarter. Results also benefited from a $29 million income tax credit.

Revenues were up 25% year-over-year to $725 million primarily driven by the HRH acquisition. Organic growth in commission and fees was 2% and reflected 5% net new business growth, offset by a negative 3% from declining premium rates and other factors.

The International business segment contributed 3% organic growth in commissions and fees, driven by growth in new business and continued benefits from growth initiatives that more than offset the soft rate environment and weakness in the UK and Ireland retail markets. Results were strong in Europe and Latin America.

The Global segment’s organic growth in commissions and fees was 4% year-over-year, driven by positive growth in Global Specialties and Reinsurance businesses. While the Reinsurance business experienced high single-digit growth, aerospace, marine and financial and executive risks specialties also posted strong performances.

However, the soft insurance markets, coupled with an increase in weakness in the U.S. economy, led to a decline of around 3% in the North America segment’s commissions and fees. Willis, however, remains focused on the integration of the HRH and continued expense management.

Adjusted operating margin was 13.1%, up 100 basis points (bps) from the year-ago quarter. Unfavorable foreign currency impact was 150 bps in the quarter.

Investment income was $10 million, down from $22 million in the year-ago quarter, driven by significant lower average interest rates in 2009. Expenses were up 25% year-over-year to $643 million.

As of Sept. 30, 2009, cash and cash equivalents totaled $203 million and total debt was $2.6 billion. The company issued $300 million of senior notes due 2019 at 7.0% and repurchased $160 million of its 5.125% senior notes due July 2010 at a premium of $27.50 per $1,000 face value.

We are encouraged to see Willis’ strong organic growth in revenues from its International Business and Global segments, with strong client retention. The “Shaping Our Future" initiatives are also contributing to the growth. The recent acquisition of Hilb Rogal & Hobbs Company has contributed to the company’s top line and going forward, we expect this acquisition to add to the company’s revenues in North America and bolster its leadership in attractive growth markets.

We believe that Willis’ efforts to streamline its businesses as well as cost saving initiatives should deliver strong financial performance over the next several years, though these initiatives will come for a price. Hence, we continue with our Neutral recommendation on the shares of Willis.
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With Friends Like These…

Robert Amsterdam — Mon, 26 Oct 2009 16:29:00 +0000

I just published a quick rant on Huffington Post after watching Joe Scarborough complain and moan about how the U.S. is going it alone on Afghanistan during his morning MSNBC show. It's no wonder so many countries are getting into...

Schlumberger Profit Dips – Analyst Blog

Zacks Market Commentaries — Fri, 23 Oct 2009 14:47:52 +0000

Schlumberger Limited (SLB) has reported its third quarter results. Diluted earnings per share from continuing operations were 65 cents, compared to the Zacks Consensus Estimate of 62 cents.

However, operating earnings were lower than both the second quarter earnings of 68 cents per share and year-ago earnings of $1.25. The downtrend was primarily due to a decline in North American drilling activity and weak energy prices.

Total revenue for the quarter decreased nearly 2% sequentially and nearly 25% year over year to $5.43 billion. Oilfield Services revenue was flat sequentially and down 22% year over year to $4.95 billion. WesternGeco revenue decreased more than 17% sequentially and 48% year over year to $463 million.

The Oilfield Services revenue was flat sequentially due to certain geographic strengths that were offset by weaker pricing. Year over year decline was largely due to poor drilling activity in the U.S Gulf of Mexico, partially offset by increased rig count in Canada. Geographically, revenue increase in Latin America was partially offset by the lower Middle East & Asia revenue due to reduced overall activity and the effects of weaker pricing.

North American revenue was flat sequentially but 45% lower year over year, while pre-tax operating income in the region was up significantly quarter over quarter but fell 91% year over year. Latin American revenue increased 8% sequentially but decreased 6% year over year, while pre-tax operating income in the region increased 12% sequentially and decreased 14% year over year.

Europe/CIS/Africa revenue was flat sequentially but fell 18% year over year, while pre-tax operating income in the region decreased 2% sequentially and 33% year over year. Middle East and Asia revenue decreased 6% sequentially and 17% year over year, while pre-tax operating income in the region decreased 7% sequentially and 26% year over year.

At WesternGeco, pre-tax operating income decreased 37% sequentially and 83% from the year-earlier level. Sequentially, the lower operating income was due to reduced sales in North America and the North Sea.

At the end of the quarter, Schlumberger had a cash balance of $4.2 billion and long-term debt of $5.19 billion, representing debt-to-capitalization ratio of 21%.

While North American gas drilling scenario assumes a modest recovery, we do not foresee any major advancement in near-term service pricing. Additionally, revenue for the remainder of the year may also impacted by the discounted pricing made at the beginning of the year.

While these near-term headwinds are expected to weigh on the stock price, the company’s long-term prospects remain positive, given its strong international footprint, particularly in the Eastern Hemisphere.
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Philip Morris Tops, Ups Guidance – Analyst Blog

Zacks Market Commentaries — Thu, 22 Oct 2009 22:06:29 +0000

Earlier today, cigarette manufacturer and marketer Philip Morris International Inc. (PM) reported better-than-expected third-quarter results, benefiting from price increases in some markets. Earnings per share came in at 93 cents, 3 cents above the Zacks Consensus Estimate.

On a year-over-year basis, Philip Morris’ earnings per share was flat (excluding a tax benefit of 8 cents in 2008), while net revenues declined 4.6% to $16.6 billion, attributable to unfavorable currency translations and weak results in the European Union (EU), Eastern Europe and Middle East & Africa (EEMA) markets.

Revenue, Volumes & Margins

On an organic basis (excluding currency and acquisitions), revenues increased 4.1% driven by favorable pricing. Cigarette volume was down almost 3% year-over-year to 219.3 billion units, mainly because of declines in EU, EEMA and Asia. The first two regions were adversely affected by the economic crisis (especially in Spain and Ukraine) and unfavorable comparisons due to a strong third quarter in 2008, while Asian volumes suffered from unfavorable trade inventory movements in Pakistan. This was partly offset by strength in Latin America & Canada, buoyed by the acquisition of Rothmans Inc.

Organic cigarette shipment volume declined 4.0%. Marlboro volumes declined 4.3% due to the cigarette market contracting in the EU and EEMA, primarily from the effects of the economic crisis in Spain and the weakening of the premium segment in Russia and Ukraine. Nevertheless, Philip Morris gained market share in Algeria, Argentina, Belgium, Brazil, Bulgaria, Canada, the Dominican Republic, Egypt, Hungary, Korea, Mexico, Pakistan, the Philippines, Portugal, Russia, Slovakia, Switzerland, Turkey and the Ukraine.

The gross margin remained flat at 25.8%, while the operating margin expanded 62 basis points to 17.5%. Interest expense increased 220% from $69 million to $221 million due to a higher average debt level.

Dividends & Share Buyback

Recently, Philip Morris announced a 7.4% increase in its quarterly dividend to 58 cents per share ($2.32 per share annualized). During the quarter, the company repurchased 31.5 million shares for $1.5 billion.

Guidance

Concurrent with the earnings release, management raised guidance for 2009. Annual earnings are expected to be in the range of $3.20 to $3.25 per diluted share versus previous guidance of $3.10 to $3.20. Guidance includes an unfavorable currency impact of 52 cents per share.

Excluding currency, diluted earnings per share are expected to increase by approximately 12% to 14%, including a pre-tax charge of $135 million ($93 million after-tax or $0.04 per share) related to the Colombian Investment and Cooperation Agreement and excluding the impact of any potential future acquisitions, asset impairment and exit costs, and any other unusual events.
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AQNM, WMT, PSFT, APA, PWRM, NOC, CSRH, IP, CVAT, CVX, DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 22 Oct 2009 20:40:25 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday October 22, 2009 DrStockPick.com Stock Report! AQNM, WMT, PSFT, APA, PWRM, NOC, CSRH, IP, CVAT, CVX ************************************************************** WMT, Wal-Mart Stores Inc. WMT operates retail stores in various formats worldwide. WMT today presented its global plans for store and club growth next year at its annual conference for the investment [...]

Equifax Reports Inline Result – Analyst Blog

Zacks Market Commentaries — Thu, 22 Oct 2009 20:19:00 +0000

Equifax's (EFX) third-quarter 2009 earnings exceeded the Zacks Consensus EPS by 2 cents, and its revenue was almost in line with the expectation of $453.0 million.

Revenue

Revenue for the quarter was $451.9 million, down 7.0% from $484.1 million in the year-ago quarter. Approximately 3.0% of the decline was due to the unfavorable effect of foreign exchange rates. There was significant revenue decline across all geographic regions, namely Latin American, European, and Canadian Consumer businesses.

Segment-wise, North American Commercial Solutions contributed $16.1 million, down 4.0% year-over-year. North American Personal Solutions contributed $37.1 million, down 9.0% year-over-year. International (including Europe, Canada and Latin America) contributed $114. million, down 13.0% year-over-year. Of this Europe declined 19.0%, Latin America slipped 12.0% and the Canadian consumer segment declined 8.0%, in US dollar terms. Even U.S. Consumer Information Solutions, which contributed $200.7 million, was down 9.0% year-over-year.

TALX segment, which generated $83.1 million, was the only segment that grew, increasing 13.0% year over year. TALX revenue increased as a result of advances in revenue at its sub segments, Work Number revenue and Tax & Talent Management Services revenue.

Operating Results

On a GAAP basis, gross margin was 63.5% versus 59.3% in the year-ago quarter. Gross margin declined due to lower business volume. Operating margin was 23.5% versus 22.1% in the year-ago quarter. The effective income tax rate was 33.5% for the reported quarter, versus 19.6% for the same period in 2008.

GAAP net income for the quarter was $59.7 million, or $0.47 per share, versus net income of $72.3 million, or $0.56 per share, in the same quarter last year. Excluding the impact of acquisition-related amortization expense, non-GAAP EPS was $0.57, compared to $0.63 in the third quarter of 2008. This was in line with the management guidance range of $0.55 to $0.60.

Balance Sheet and Guidance

The company exited the quarter with $77.7 million in cash and cash equivalents, up $14.1 million sequentially and $740.4 million in long-term debt, down $50.9 million sequentially. Equifax provided an adjusted EPS guidance range of $0.53 to $0.58 for the fourth quarter, although the company did not provide a revenue guidance.

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

Occidental Tops Zacks Estimate – Analyst Blog

Zacks Market Commentaries — Thu, 22 Oct 2009 18:38:00 +0000

Occidental Petroleum Corporation (OXY) posted better-than-expected numbers for the third quarter of 2009 based on higher sales volumes and lower operating expenses.

Net income from continuing operations was $1.14 per share, higher than the Zacks Consensus Estimate of $1.08. However, net income in the quarter was lower than the $2.77 per share reported in the same period last year.

Daily oil and gas sales volumes increased 6.8%, averaging 628,000 barrels of oil equivalent (BOE) during the reported quarter, compared with 588,000 BOE sold in the third quarter of 2008. Volumes increased by approximately 6% domestically, mainly from California and the Permian, and by about 15% in the Middle East/North Africa, largely in Oman and Dolphin. This was offset by a 6% decline in Latin America, mostly due to a labor strike in Argentina. Increased California volumes resulted largely from the new exploration discoveries in Kern County.

Revenue decreased 41.9% to $4,104 million in the third quarter, compared to $7,060 million a year ago. The decline was due to lower crude oil and natural gas prices during the quarter. Occidental's average realized crude oil and natural gas prices declined in the quarter by 39% and 67%, respectively.

The company continues to maintain its financial flexibility with net debt of $2.8 billion and total debt-to-capitalization of 9% at the end of third quarter 2009. Capital spending for the quarter was $746 million.

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

eDoorways Corp. (EDWY.PK) Granted Key Role at XVIIth ISTEC General Assembly

QualityStocks — Thu, 22 Oct 2009 17:55:56 +0000

eDoorways Corporation announced this afternoon that it will be playing an integral role at the Ibero-American Science and Technology Education Center (ISTEC) XVIIth annual General Assembly, held the week of October 26 – 30, 2009, on the Campus of the University of New Mexico (UNM) in Albuquerque, NM – USA. Not only will eDoorways co-sponsor [...]

Zacks Bull and Bear of the Day Highlights: Vodafone, Conmed Corp., Caterpillar Inc., Coca Cola Company and Lockheed Martin Corporation – Press Releases

Zacks Market Commentaries — Wed, 21 Oct 2009 13:00:18 +0000

For Immediate Release

Chicago, IL – October 21, 2009 – Zacks Equity Research highlights Vodafone (VOD) as the Bull of the Day and Conmed Corp. (CNMD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caterpillar Inc. (CAT), Coca Cola Company (KO) and Lockheed Martin Corporation (LMT).

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

Here is a synopsis of all five stocks:

Bull of the Day:

We maintain our Outperform recommendation for Vodafone (VOD), the largest revenue generating international wireless carrier. Revenue growth in the last quarter was fuelled by foreign exchange gains and acquisitions.

Additionally, increase in subscriber base was driven by continued healthy net additions in its Indian operation. Vodafone's globally diversified operation provides hedging elements which offset price competition and translation risk that may arise in specific markets. The company continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa.

Moreover, Vodafone is focused on improving shareholder returns through attractive dividend payouts. Management's outlook for fiscal 2010 remains favorable as operating results are expected to improve with continued growth across incipient markets coupled with ongoing cost saving initiatives and currency exchange translation gains.

Bear of the Day:

Conmed Corp. (CNMD) operates in highly competitive markets against competitors that are much larger, technically competent and possess substantially more assets.

Additionally, many of these competitors offer a range of products not matched by Conmed, which may make Conmed's offerings less attractive to surgeons, hospitals, and group purchasing organizations that are trying to reduce the number of vendors they do business with. In the second quarter, earnings per share were $0.17, compared to the Zacks Consensus Estimate of $0.16 and the year-ago earnings of $0.43.

We have an Underperform rating on Conmed with a target price of $18.

Coca Cola Reports Modest Results – Analyst Blog

Zacks Market Commentaries — Tue, 20 Oct 2009 16:26:13 +0000

The Coca Cola Company (KO) reported modest results for the third quarter with earnings of 81 cents per share. Earnings were in-line with the Zacks Consensus Estimate and flat year-over-year.

Net operating revenues for the quarter declined 4% year-over-year, driven by a 6% negative impact from currency translation and a 1% adverse impact from a structural change. This was partially offset by 2% increase in concentrate sales and a 1% benefit from pricing and product mix.

Worldwide unit case volume increased 2% in the quarter, aided by a 4% improvement in international unit case volume and 2% growth in the Coca Cola trademark brand. The emerging markets of India and China grew an impressive 37% and 15%, respectively. In addition, strong unit case volume growth was observed in other key markets including Eurasia & Africa, Latin America and Pacific. Europe posted a 2% volume decline, while North American volume declined 4%.

In Europe, volume declined due to the tough macro economic environment. While in North America, in addition to the challenging environment, aggressive competitive pricing within the non-carbonated beverage category added to the decline in volume. Furthermore, in North America, many consumers for health reasons prefer juices and teas instead of soft drinks.

Carbonated soft drink (CSD) case volume increased 1% during the quarter. Non-carbonated beverage (NCB) volume grew 7% driven by strong growth across the portfolio, including juices and juice drinks, sports drinks, teas and water brands. In North America, NCB’s were flat year-over-year.

Gross margins for the quarter contracted 49 basis points (bps) to 63.5% versus 64.0% in the prior-year quarter. The decline was primarily attributable to adverse currency impact of currency translation and impact from structural changes related to bottling investments. The operating margin for the quarter expanded 64 bps to 26.7% versus 26.1% in the prior-year quarter. The increase was attributable to lower selling, general and administration expenses.

The company had cash and cash equivalents of $8.8 billion and a debt-to-capitalization ratio of 17%.

During the first nine months of 2009, the company topped the nonalcoholic ready-to-drink industry in most of its key markets for the ninth consecutive quarter, thereby driving further global volume and market share gains. Management states that its investments in key growth markets such as China, Mexico, India and Brazil contributed to the results.

The company is on track to achieve the $500 million target in annualized savings by 2011 and expects to deliver more than half of the savings by the end of 2009.

Coca Cola also rolled out its 2020 Vision, which is the roadmap for the company to grow along with its worldwide bottling partners. Management stated that the 2020 Vision roadmap is improving clarity and focus of the global business. It therefore expects better utilization of growth opportunities, going forward.
Read the full analyst report on "KO"
Zacks Investment Research

eDoorways Corp. (EDWY.PK) to Present on World Stage at the Ibero-American Science and Technology Education Center’s XVII Annual General Assembly

QualityStocks — Tue, 20 Oct 2009 13:59:38 +0000

eDoorways Corp. today announced that it has been scheduled to present at ISTEC’s (Ibero-American Science and Technology Education Center) 17th annual General Assembly, held the week of October 26 – 30, 2009, on the Campus of the University of New Mexico (UNM) in Albuquerque, NM — USA. The theme for this year’s General Assembly is, [...]

Earnings Preview for Goodyear – Analyst Blog

Zacks Market Commentaries — Mon, 19 Oct 2009 18:45:09 +0000

Goodyear Tire & Rubber Co. (GT) will release its sales and earnings results for the third quarter before the markets open on Wednesday, Oct 28. The Akron, Ohio-based tire manufacturing company – one of the largest worldwide – reported a net loss of $221 million or 92 cents per share in the second quarter of 2009, worse than the Zacks Consensus Estimate loss of 72 cents per share. The company reported earnings of $75 million or 31 cents per share in the same quarter a year back.

Total segment operating income plummeted 93% to $24 million in the second quarter from $330 million in the prior-year quarter. This can be attributed to continued weak demand that resulted in a negative volume impact of $129 million and under-absorbed fixed costs of approximately $250 million prior to a restructuring actions benefit.

However, Goodyear witnessed a sequential improvement in segment operating income over the first quarter ($176 million loss) due to higher sales, moderating raw material costs and cost-reduction actions.

For the upcoming quarter, Goodyear is expected to show profits in its books. The Zacks Consensus Estimate for the company is ticked at 47 cents per share, reflecting a significant improvement from recorded earnings in the previous quarter. This is due to several factors including its cost reduction efforts and growth strategy.

Goodyear remains focused on the twin goals of top-line growth and cost reductions. The top-line growth incorporates an unprecedented number of product launches in 2009 and beyond, with more than 50 new tires being introduced globally. Goodyear aims to tap significant growth opportunities in emerging markets such as Latin America, Eastern Europe and Asia. For 2009, Goodyear Tire has targeted a double-digit growth in the Eastern Europe, African and Middle Eastern (EEAME) region as demand for premium products continues to increase.

Goodyear sells its tires under the Goodyear, Kelly, Dunlop, Fulda, Debica, Sava and various other “house" brands (such as Lee, Kingstone, Douglas, Mohave and Republic) as well as private-label brands (such as Roadhandler, Star and Monarch). The company also undertakes automotive repairs and provides other services through more than 1,600 tire and auto service centers. It has manufacturing operations at more than 61 facilities, which are spread across 25 countries.

We continue to recommend the shares of Goodyear as Neutral.
Read the full analyst report on "GT"
Zacks Investment Research

Weatherford Profit Falls – Analyst Blog

Zacks Market Commentaries — Mon, 19 Oct 2009 17:59:03 +0000

Early today, Weatherford International Ltd. (WFT) reported weaker-than-expected third-quarter 2009 recurring earnings of 13 cents per diluted share, compared to the Zacks Consensus Estimate of 13 cents and year-ago earnings of 55 cents.

The year-over-year decrease primarily reflects the sharp drop in North American revenue on the back of 52% lower rig count. We have adjusted the reported earnings of 11 cents per share for one-time charges (mainly expenses associated with Weatherford’s withdrawal from some countries and severance costs related to restructuring activities) of 2 cents per share.

Total revenue declined more than 15% year-over-year to $2.15 billion. Of this, North America, Middle East/North Africa/Asia, Latin America and Europe/West Africa/CIS segments accounted for 29%, 28%, 24% and 19%, respectively.

North American revenue decreased 47% year-over-year to $620 million on the back of a 52% lower rig count. This segment posted an operating income of $33 million, compared to $313 million in the year-earlier quarter. However, both revenue and operating income have increased on a sequential basis, driven by increased rig count and seasonal recovery in Canada, respectively.

Revenue from Middle East/North Africa/Asia decreased approximately 6% year-over-year to $600.1 million, and operating income declined 30% year-over-year to $102 million. However, revenue slightly increased sequentially, driven by strong performances in Saudi Arabia, Qatar, China and Australia.

Latin American revenue increased 67% year-over-year to $525 million and operating income decreased 22% year-over-year to $54 million. Europe/West Africa/CIS revenue decreased 1% year-over-year to $404 million and operating income decreased 30% year-over-year to $72 million.

While Weatherford’s results were hurt by the poor North American revenue, increasing rig count and cyclical recovery in some domestic and international markets will benefit the company, in our view. In addition, the company’s involvement in a number of integrated drilling projects, growing presence in the relatively stable Eastern Hemisphere market and aggressive growth targets for international regions are a few other positives for the near-to-medium term growth trajectory.
Read the full analyst report on "WFT"
Zacks Investment Research

LAN Airlines Sees Traffic Growth – Analyst Blog

Zacks Market Commentaries — Fri, 16 Oct 2009 19:07:03 +0000

Earlier this month, LAN Airlines S.A. (LFL) and its subsidiaries released its preliminary monthly traffic statistics and punctuality indicators for September. Passenger traffic rose 11.9% year over year while capacity jumped 9.3%. Its load factor increased 1.8 points to 78.8%.

International passenger traffic accounted for almost 71% of total passenger traffic, with the rest coming from domestic passengers.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 17.5% and international passenger traffic rose 9.8%. Domestic capacity increased 15% and international capacity increased 7.1%. International capacity was mainly driven by a surge in operations in Europe and the South Pacific, which was partially offset by a decrease in certain regional routes.

Cargo traffic fell 8% mainly due to the slowdown in import and export markets in Latin America, as well as the reduction of salmon exports from Chile. In line with the decrease in demand, capacity fell 7%. The cargo load factor reached its highest level this year at 69.8%.

The company’s near-term outlook is not as bright as it was a few months ago primarily due to the international economic crisis. However, we believe Chile will perform reasonably during 2009.

In fact, the Chilean Government has already announced a $4 billion economic stimulus package that represents 2.8% of the country's GDP. The plan will be funded by the country's sovereign wealth fund. As the most organized and developed economy in Latin America, Chile is now capable of pursuing a truly anti-cyclical policy.

The company accounts for more than one half of Chile’s international passenger traffic and nearly three-quarters of its domestic traffic. Moreover, consistent positive results and solid financial and liquidity positions will enable LAN to move ahead with a number of long-term initiatives.
Read the full analyst report on "LFL"
Zacks Investment Research

Abbott Outperforms & Raises – Analyst Blog

Zacks Market Commentaries — Wed, 14 Oct 2009 14:51:20 +0000

Abbott Laboratories (ABT) reported third quarter earnings of 92 cents per share, 2 cents above the Zacks Consensus Estimate of 90 cents.

Results were above the company’s guidance of 88 – 90 cents. Earnings increased 16.5% from the year-ago period. Total revenues grew 3.5% to $7,761 million. Revenues were negatively impacted by 4.9% due to foreign exchange (Fx) headwinds.

Sales in the Pharmaceutical division totaled $4,055 million, down 1.6% and negatively impacted by about 5.5% due to Fx. Strong Humira and lipid franchise sales were offset by weak performance of Depakote, which is facing intense generic competition.

The lipid franchise posted sales of $545 million. The recent launch of TriLipix, which will be co-promoted with AstraZeneca (AZN), should help drive lipid franchise sales.

Meanwhile, we were pleased to see that Humira continued to perform well in both U.S. and international markets -- we expect the product to play an important role in Abbott’s growth story. Including the negative impact of Fx, Abbott expects Humira sales growth of 18-20%, up from the earlier guidance. We believe the product is gaining share from Amgen/Wyeth’s (AMGN/WYE) Enbrel and Johnson & Johnson’s (JNJ) Remicade. Sales increased to $1.491 billion.

The Nutritional business posted sales of $1,386 million in the quarter, up 9.8%. The segment is enjoying strong growth in key emerging markets, including Latin America and Asia. Abbott Diagnostics posted sales of $909 million in the quarter, representing a decrease of 0.3%. However, excluding the Fx impact of 6.1%, sales would have been up 5.8%.

The Vascular division continued to perform well, with sales increasing 4.7% to $666 million. XIENCE V continues to gain market share. The company stated that the XIENCE platform, consisting of XIENCE V and Promus, accounts for more than half of the U.S. market. Meanwhile, other division sales totaled $745 million, representing growth of 31.4%.

Based on the better-than-expected results, management increased earnings guidance for 2009. The company expects earnings in the range of $3.70 - $3.72 per share, up from the previous guidance of $3.65 - $3.70.

Although economic weakness and Fx headwinds have slowed down top-line growth, we believe Abbott is weathering the storm relatively well. Abbott’s strong business segments, contributions from recent acquisitions and impressive late-stage pipeline should help fortify long-term earnings growth. Humira will continue to be a huge growth-driver going forward. We have a Neutral rating on the stock.
Read the full analyst report on "ABT"
Read the full analyst report on "AMGN"
Read the full analyst report on "WYE"
Read the full analyst report on "AZN"
Read the full analyst report on "JNJ"
Zacks Investment Research

DrStockPick.com Stock Report! 10/14/09, LVCA, ALYI, SIFY, COHR, TECD, LRN

Dr. Stock Pick — Wed, 14 Oct 2009 13:55:56 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Wednesday October 14, 2009 DrStockPick.com Stock Report! ************************************************************** Lake Victoria Mining Company (OTCBB: LVCA) initiated a surface trenching program to locate and expose selected possible new quartz veins at the Company’s Singida Gold project in central Tanzania. Preliminary information suggests that three new [...]

eDoorways Corp. (EDWY.PK) Announces Intent to Purchase Mobile Video Transceiver Technology

QualityStocks — Wed, 14 Oct 2009 13:28:44 +0000

In an effort to increase the prospect of its service offering, eDoorways Corporation has signed a letter of intent to purchase the mobile device technology and services of a development team from Ian Mitchell of Universal Design Technologies, Inc. eDoorways plans to operate its acquisition as a wholly owned subsidiary. The technology supports what eDoorways calls [...]

JNPR, PWRM, FISV, CSRH, CSCO, CVAT, HON, AQNM, HAL, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 13 Oct 2009 18:53:03 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday October 13, 2009 DrStockPick.com Stock Report! JNPR, PWRM, FISV, CSRH, CSCO, CVAT, HON, AQNM, HAL ************************************************************** JNPR, Juniper Networks, Inc. JNPR is the leader in high-performance networking. JNPR offers a high-performance network infrastructure that creates a responsive and trusted environment for accelerating the deployment of services and applications [...]

CSRH.OB Consorteum Holdings Inc. has Identified Several new key Business Opportunities

Dr. Stock Pick — Tue, 13 Oct 2009 15:20:21 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Tuesday October 13, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc.’s will build on its extensive expertise within the Payments and Transaction Industry in North America, Europe and Internationally. By identifying new technologies and trends in the changing global marketplace, Consorteum Holdings Inc. [...]

Potential for surprise!

Prieur du Plessis — Tue, 13 Oct 2009 08:19:12 +0000

By Cees Bruggemans, Chief Economist FNB These are dynamic times in which few things remain the same for long. What surprises could await us these next six to twelve months? Externally, there has been plenty of warning of a long period of near zero interest rates at the global centre (America, Europe, Japan) while growth and yield [...]

AAPL, PWRM, GOOG, CSRH, C, CVAT, INTC, AQNM, IBM, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 12 Oct 2009 19:27:47 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday October 12, 2009 DrStockPick.com Stock Report! AAPL, PWRM, GOOG, CSRH, C, CVAT, INTC, AQNM, IBM ************************************************************** AAPL, Apple Inc. and GOOG, Google Inc. AAPL and its wholly owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices, and sell [...]

JNJ, PWRM, HERO, CSRH, SCHW, CVAT, BX, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 12 Oct 2009 17:20:21 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday October 12, 2009 DrStockPick.com Stock Report! JNJ, PWRM, HERO, CSRH, SCHW, CVAT, BX, AQNM ************************************************************** JNJ, Johnson & Johnson JNJ engages in the research and development, manufacture, and sale of various products in the health care field worldwide. JNJ reports earnings for the third quarter Tuesday morning. ************************************************************** PWRM, Power 3 [...]

Gol Prices Global Offering – Analyst Blog

Zacks Market Commentaries — Mon, 12 Oct 2009 16:30:15 +0000

On Friday, GOL Linhas Aereas Inteligentes S.A. (GOL) announced that its global offering of 38,005,000 preferred shares, including preferred shares in the form of American Depositary Shares ("ADSs"), by the company and ASAS Investment Fund, the company's controlling shareholder was priced on October 8, 2009.

The offering of preferred shares in Brazil has been registered with the Comissao de Valores Mobiliarios (CVM), the Brazilian securities commission. ASAS Investment Fund will invest the entire the proceeds (excluding proceeds from the sale of any preferred shares upon the exercise of the over-allotment option) received from the sale of preferred shares in common shares newly issued by the company.

ASAS Investment Fund has granted the international and Brazilian underwriters an option to purchase up to 5,182,500 additional preferred shares, including preferred shares in the form of ADSs.

The ADSs were offered to the public at a price of US$9.48 per ADS, and the preferred shares were offered to the public at a price of R$16.50 per preferred share. Upon pricing, the transaction was upsized by 10% from 34,550,000 preferred shares to 38,005,000 preferred shares.

The net proceeds of approximately US$346.6 million from the global offering and the concurrent subscription of common shares by ASAS Investment Fund will be used primarily for general corporate purposes and to strengthen its cash position and balance sheet.

Gol remains better positioned to capitalize on the growth of discount air travel in Brazil and the rest of Latin America given its strong market share and efficient operations. Favorable trends in fuel prices and exchange rates are also benefiting the company's outlook.

Although competitive pressures and the impact of the global financial crisis are a source of concern, Gol's position is strong. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements. Thus, we are maintaining our Outperform recommendation on Gol ADRs.
Read the full analyst report on "GOL"
Zacks Investment Research

CSRH Consorteum Holdings Inc. has Identified Several new key Business Opportunities

Dr. Stock Pick — Mon, 12 Oct 2009 13:54:43 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday October 12, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc.’s will build on its extensive expertise within the Payments and Transaction Industry in North America, Europe and Internationally. By identifying new technologies and trends in the changing global marketplace, Consorteum Holdings Inc. [...]

MBRX, PWRM, CBS, CSRH, CVC, CVAT, NOC, AQNM, UTX, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 09 Oct 2009 18:38:06 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday October 9, 2009 DrStockPick.com Stock Report! MBRX, PWRM, CBS, CSRH, CVC, CVAT, NOC, AQNM, UTX ************************************************************** MBRX, Metabasis Therapeutics Inc. MBRX, a biopharmaceutical company, engages in the discovery, development, and commercialization of novel drugs targeting the liver and liver pathways. On September 15, 2009, MBRX received a letter [...]

CSRH Consorteum Holdings Inc. has Identified Several new key Business Opportunities

Dr. Stock Pick — Fri, 09 Oct 2009 13:52:05 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday October 9, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc.’s will build on its extensive expertise within the Payments and Transaction Industry in North America, Europe and Internationally. By identifying new technologies and trends in the changing global marketplace, Consorteum Holdings Inc. [...]

NNAN, PWRM, NOC, CSRH, COP, CVAT, JWN, AQNM, NVDA, DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 08 Oct 2009 19:17:26 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday October 8, 2009 DrStockPick.com Stock Report! NNAN, PWRM, NOC, CSRH, COP, CVAT, JWN, AQNM, NVDA ************************************************************** NNAN, NaturalNano Inc., NNAN.OB NNAN is a materials science company focused on developing and commercializing advanced nanocomposites. Series of Cornell’s feasibility studies using NNAN’s Halloysite Natural Tubes has been very successful. The [...]

TEF Bids to Expand in Brazil – Analyst Blog

Zacks Market Commentaries — Thu, 08 Oct 2009 16:31:07 +0000

Spain’s incumbent telecom carrier Telefonica SA (TEF) has reportedly made an all-cash bid to acquire Brazilian telecom operator GVT Holding SA in an effort to expand its presence in the lucrative Brazilian telecom market.

The Spanish operator’s Brazilian fixed-line subsidiary Telecomunicacoes de Sao Paulo (Telesp) has offered BRL48 (US$27.2) per share of GVT to acquire atleast 51% of the company, equating to a total investment of €2.55 billion (US$3.75 billion). This offer, which is subject to regulatory and shareholders approvals, has outbid the BRL42 (US$23.8) per share offer made by France-based media company Vivendi SA in September 2009. Telefonica targets to eventually acquire 100% stake in GVT.

Large telecom carriers across the US and Europe are increasingly focused on expanding their foothold in under-penetrated markets given the limited growth prospects in their matured domestic markets. With its vast population and relatively low wireless and broadband penetration, Brazil offers an attractive growth opportunity for overseas telecom operators.

Wireless penetration in Brazil is expected to increase by 15% or more over the next two years. The country will also host the 2016 Olympic Games.

Latin America remains the principal growth region for Telefonica. Healthy revenue and subscriber growth from this region continues to partly offset declines across the company’s domestic and European markets due to recession and intense competition.

Through a joint venture with Portugal Telecom (PT), Telefonica operates Brazilian wireless operator Vivo (VIV), the leading wireless carrier in Brazil with a customer base of approximately 46.8 million and roughly 30% market share. However, Telefonica’s Brazilian presence is currently limited to Sao Paulo, the country’s largest and most lucrative market.

Telefonica is exposed to increased competition in Brazil , the largest contributor to the company’s Latin American revenues. Competition has intensified with the country’s fourth-largest mobile operator Tele Norte Leste Participacoes’s (TNE) acquisition of 61.2% stake in Brasil Telecom (BRP), the third-largest fixed-line carrier in Brazil. This strategic investment has resulted in the creation of a national telecom giant with approximately 17% and 70% control of Brazil ’s cellular market and fixed-line market, respectively.

GVT Holding operates primarily in Brazil ’s center-west, Southern and Northern regions with roughly 2.3 million subscribers across 86 Brazilian cities. The company’s focus on high-usage and high-margin customers has enabled it to grow at a healthy pace, making it an attractive acquisition target.

Over the years Telefonica has focused on growth through acquisitions. By acquiring GVT, the company will be well positioned to expand beyond its core Sao Paulo market to other regions of the country. Moreover, GVT is the fourth-largest broadband service provider in Brazil , which will boost growth opporutnities in this market.

While the GVT deal represents a significant growth prospect for Telefonica given the attractive potential for synergies, resources spent on acquiring a controlling stake in the entity is likely to constrict returns to investors in the form of dividend and share buybacks.
Read the full analyst report on "TEF"
Read the full analyst report on "TNE"
Read the full analyst report on "PT"
Read the full analyst report on "VIV"
Read the full analyst report on "BRP"
Zacks Investment Research

Zacks Analyst Blog Highlights: Iron Mountain Incorporated, Equifax, R.R. Donnelley & Sons, Dun & Bradstreet Corp. and Hewitt Associates, Inc. – Press Releases

Zacks Market Commentaries — Thu, 08 Oct 2009 12:45:04 +0000

For Immediate Release

Chicago, IL – October 8, 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: Iron Mountain Incorporated (IRM), Equifax (EFX), R.R. Donnelley & Sons (RRD), Dun & Bradstreet Corp. (DNB) and Hewitt Associates, Inc. (HEW).

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

Here are highlights from Wednesday’s Analyst Blog:

Iron Mountain Remains Solid

Boston, MA-based Iron Mountain Incorporated (IRM) is a leading provider of information protection and storage services in North America, Latin America, Europe and the Pacific Rim. We are encouraged by the company’s continuous momentum through 2007 and 2008, driven by strength in the storage segment, which has grown at a compound annual growth rate (CAGR) of 22%.

Through operational execution combined with record center optimization, the company expects to achieve over $20 million in cost savings. With an encouraging second half, steady recurring revenue, strong margins, strengthening capital structure and impressive cash flow, the company’s fundamentals remain strong.

Iron Mountain reported good second quarter results, with earnings exceeding the Zacks consensus estimates. We are encouraged by the continuing strength in the information protection and storage services business, which has driven steady profits for IRM. As a leader in record management and data protection services, it has further strengthened its position through acquisitions and international expansion.

While positive on the company’s prospects, we would like to caution investors about the high level of debt. Iron Mountain has a significant amount of debt (over 50% of its total asset balance) and low liquidity. At the end of the second quarter, the company reported $3.2 billion in total debt (including the current portion, yielding a debt-equity ratio of 1.65. Iron Mountain competes against Equifax (EFX), R.R. Donnelley & Sons (RRD), Dun & Bradstreet Corp. (DNB) and Hewitt Associates, Inc. (HEW).

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Zacks Investment Research

H.B. Fuller Company – Value – Zacks Rank Buy

Tracey Ryniec — Thu, 08 Oct 2009 05:00:00 +0000

H.B. Fuller Company (FUL) has surprised on estimates the last two quarters by an average of 38.67% as volumes have improved quarter over quarter. The company is trading with a forward P/E of 14.98.

Company Description

H.B. Fuller manufactures adhesives, sealants, paints and other specialty chemical products for customers in more than 100 countries. The company operates in four geographic regions: North America, Latin America, Europe and Asia Pacific. It has employees in 36 countries.

H.B. Fuller Surprised on the Third Quarter by 33.33%

On Sep 22, H.B. Fuller reported third-quarter results and easily beat the Zacks Consensus Estimate by 12 cents per share. Earnings per share were 48 cents compared to 44 cents in the year ago quarter. This surpassed the Zacks Consensus Estimate of 36 cents per share.

Revenues, however, fell 12.9% to $315.3 million from the third quarter of 2008 as weak end-market demand continued. The good news was that this was less of a decline than in the second quarter, when revenues fell 15.1% year over year.

Lower volumes and unfavorable foreign currency translation hurt growth but the company was able to sustain a higher average sales price. Acquisitions also impacted revenues positively in the quarter.

On a quarter over quarter basis, the company saw improvement. Revenues rose 5% on improved volumes and slightly lower raw material costs in the third quarter compared to the second.

Outlook

The company expects revenues to continue the quarter over quarter improvement that was seen in the second to third quarters. It expects net revenue to be $330 million in the quarter.

Analysts Are Bullish on 2009

The Zacks Consensus Estimates for the fourth quarter and the full year jumped after the better-than-expected third quarter report. Fourth-quarter estimates rose 5 cents to 41 cents over the last 30 days with 5 out of 6 covering analysts raising during that time.

The 2009 Zacks Consensus Estimate jumped 11.6% to $1.35 from $1.21 per share in the last month.

Value Fundamentals

H.B. Fuller is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book of 1.54. The company has a strong 5-year average return on equity (ROE) of 11.12%.

As an added bonus, H.B. Fuller also pays a dividend, with a current yield of 1.40%.

Zacks Investment Research

Santander Raises $8B in Brazil IPO – Analyst Blog

Zacks Market Commentaries — Wed, 07 Oct 2009 21:57:50 +0000

Banco Santander, S.A. (STD) has raised $8.1 billion (14.1 billion Brazilian reals) in a record initial public offering (IPO) of its Brazilian operations as the bank seeks growth away from the ailing Spanish economy.

The Brazilian arm sold 600 million shares for 23.50 reals ($13.43) per share, to the public through a concurrent offering in Brazil and New York. The price was in the middle of the expected range of 22 reals to 25 reals.

Santander had initially filed to sell 525 million units, with each representing 55 common shares and 50 preferred shares, but the offering was increased by 75 million units to meet demand from investors.

In the U.S., the new stock will trade on the Big Board under the ticker symbol "BSBR." Trading of the units will begin on the New York and Sao Paulo stock exchange begins today.

The IPO marks the biggest offering in Brazil's history and the largest on a global basis since Visa, Inc. (V) went public in March 2008. The IPO is expected to boost the company’s core Tier-1 capital by 0.6 percentage points from its level of around 7.5% at the end of the second quarter of 2009.

Santander plans to use the proceeds to open around 600 new branches in Brazil by 2013, expanding its network in the country by almost 33%. The company has already invested heavily in the region in the last several years, including the acquisition of ABN Amro's Brazilian business when it was split two years ago.

Looking at Santander's expansion plans, by 2011, Latin America will contribute 41% of the company’s total group's profits, up from 33% now, with Brazil representing 50% of the total Latin American business.

Brazil is expected to deliver strong growth to Santander, as the country's gross domestic product is expected to grow in the range of 3% to 5% in 2009. On the other hand, the European economy will only grow between 1% and 2%. Soaring unemployment in Spain has pushed up non-performing loans on Santander's books and the situation could get even worse.

However, there are concerns in the near term regarding the continued stabilization of a volatile Brazilian economy, which does appear to be on-track at present. Further, the percentage of their non-performing loans is much higher than their competitors while their reserves are, ironically, lower.

We maintain our Neutral recommendation on the stock.
Read the full analyst report on "STD"
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Zacks Investment Research

RPRX, PWRM, WYN, CSRH, BX, CVAT, DELL, AQNM, IBM, DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 07 Oct 2009 20:58:37 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday October 7, 2009 DrStockPick.com Stock Report! RPRX, PWRM, WYN, CSRH, BX, CVAT, DELL, AQNM, IBM ************************************************************** RPRX, Repros Therapeutics Inc. RPRX focuses on the development of oral small molecule drugs for major unmet medical needs that treat male and female reproductive disorders. Secondary hypogonadism is a deficiency state in [...]

Iron Mountain Remains Solid – Analyst Blog

Zacks Market Commentaries — Wed, 07 Oct 2009 20:43:45 +0000

Guidance for 2009 Reaffirmed

At the Investor Day yesterday, Iron Mountain Incorporated (IRM) reiterated its guidance for fiscal 2009. The company expects revenue in the range of $2.98 - $3.04 billion, representing growth of 3% to 5% from fiscal 2008, excluding the effects of foreign currency fluctuations and acquisitions.

Operating income is expected in the range of $510 - $540 million and depreciation and amortization of approximately $320 million. Thus operating income before depreciation and amortization (OIBDA), excluding asset gains and losses, is expected to be in the range of $830 - $860 million, a growth of 10% to 14% from fiscal 2008. The company expects to incur a capital expenditure of $380 million for the full year (approximately 10.8% of revenue).

Preliminary Guidance for 2010

Iron Mountain also provided a strong preliminary outlook for fiscal 2010 due to efficient capital spending and growth in earnings. The company expects revenue in the range of $3.15 - $3.21 billion, up 3% to 6% from fiscal 2009, excluding the effects of foreign currency fluctuations and acquisitions.

Operating income is expected in the range of $565 - $610 million and depreciation and amortization of approximately $330 million. OIBDA is expected to be in the range of $895 - $940 million, representing growth of 5% to 10% from fiscal 2008, ahead of the revenue growth. The company expects to incur a capital expenditure of $380 million.

Long-Term Goals

The company expects revenue to grow 7% to 12% for 2011 - 2014. OIBDA is expected to grow 10% to 15%. Capital expenditure as a percentage of revenue is expected to improve to 9.3% in 2014 from the previous expectation of 12%. Incremental ROIC is expected to be 15% to 20%.

Our Outlook

Boston, MA-based Iron Mountain is a leading provider of information protection and storage services in North America, Latin America, Europe and the Pacific Rim. We are encouraged by the company’s continuous momentum through 2007 and 2008, driven by strength in the storage segment, which has grown at a compound annual growth rate (CAGR) of 22%.

Through operational execution combined with record center optimization, the company expects to achieve over $20 million in cost savings. With an encouraging second half, steady recurring revenue, strong margins, strengthening capital structure and impressive cash flow, the company’s fundamentals remain strong.

Iron Mountain reported good second quarter results, with earnings exceeding the Zacks consensus estimates. We are encouraged by the continuing strength in the information protection and storage services business, which has driven steady profits for IRM. As a leader in record management and data protection services, it has further strengthened its position through acquisitions and international expansion.

While positive on the company’s prospects, we would like to caution investors about the high level of debt. Iron Mountain has a significant amount of debt (over 50% of its total asset balance) and low liquidity. At the end of the second quarter, the company reported $3.2 billion in total debt (including the current portion, yielding a debt-equity ratio of 1.65. Iron Mountain competes against Equifax (EFX), R.R. Donnelley & Sons (RRD), Dun & Bradstreet Corp. (DNB) and Hewitt Associates, Inc. (HEW).

Iron Mountain rose 1.4% and closed at $26.51 yesterday. It is up another 7 cents in afternoon trading today.
Read the full analyst report on "IRM"
Read the full analyst report on "EFX"
Read the full analyst report on "RRD"
Read the full analyst report on "DNB"
Read the full analyst report on "HEW"
Zacks Investment Research

YUM Beats Expectations – Analyst Blog

Zacks Market Commentaries — Wed, 07 Oct 2009 14:01:10 +0000

The operator of Taco Bell, Pizza Hut and KFC fast food chains -- Yum! Brands, Inc. (YUM) -- recently reported better-than-expected third-quarter 2009 results buoyed by commodity deflation, lower costs and strong performance by its China division.

Yum!’s quarterly earnings of 70 cents a share (excluding special charges) comfortably surpasses the Zacks Consensus Estimate of 59 cents, and surged 21.0% year-on-year from 58 cents posted in the prior-year quarter.

Lower labor (down 9.0%) and food costs (down 7.0%), slide in G&A expenses (down 9.0%), and operating profit growth in both China (up 32.0%; up 31.0% excluding FX [foreign exchange] impact) and the U.S. (up 18.0%) divisions drove the earnings. These were partially offset by a 13.0% decline in Yum! Restaurants International Division’s (YRI) operating profit and a negative impact of 2 cents a share from foreign currency translation.

The strength in the China division and a lower-than-expected full year effective tax rate prompted management to raise its 2009 EPS guidance from $2.10 to $2.14 (up 12.0% year-on-year). Yum! expects EPS growth of 10.0% in 2010.

Comparable restaurant sales remained flat in mainland China and in other international markets. However, comps fell 6.0% in U.S., including a 13.0% decline in Pizza Hut. Yum!’s total revenue slipped 2.0% to $2,778 million, registering a 12.0% drop in YRI and a 13.0% fall in the U.S. divisions, offset by 22.0% growth in the China division.

Yum! seeks to expand globally, led by its highly profitable China operations. During the quarter, the company opened 88 restaurants in mainland China and 165 restaurants in the markets under YRI. Management expects to open at least 500 restaurants in China and about 900 units in international markets in 2009. The international markets comprise Asia (excluding China), Australia, Continental Europe, Latin America, France, Russia, India and the U.K.

Yum! and other fast-food chains like Burger King Holdings (BKC), McDonald’s Corporation (MCD) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.

Recently, Yum! raised its quarterly dividend by 11.0% to 21 cents a share, marking the fifth consecutive annual increase since the inception of its dividend program in 2004, and also increased the share buyback program by $300 million. Over a decade, the company has returned more than $6 billion to shareholders via share buybacks.

We believe that despite economic headwinds, Yum! is actively managing its capital, returning much of its free cash to shareholders. Furthermore, the stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets. As such, we retain our Outperform recommendation on the stock.
Read the full analyst report on "YUM"
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Zacks Investment Research

CSRH Consorteum Holdings Inc. has Identified Several new key Business Opportunities

Dr. Stock Pick — Wed, 07 Oct 2009 13:51:13 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Wednesday October 7, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc. Provides Corporate Update Consorteum Holdings, Inc. (OTCBB: CSRH) announced a corporate update with respect to its business activities. Over the course of the past 60 days, several meetings and presentations have occurred between [...]

Brazilian Airlines Improving – Analyst Blog

Zacks Market Commentaries — Tue, 06 Oct 2009 20:08:43 +0000

Yesterday, Gol Linhas Aereas Inteligentes S.A. (GOL) reported its preliminary traffic figures for September 2009.

During the month, Gol recorded a 26.6% yearly growth in air traffic demand due to the increased supply and improved distribution of seats based on the merger between Gol and Varig (VRG), the continued revitalization of the SMILES program -- Latin America's largest mileage program, with more than 6.4 million members and successive fare reductions, which boosted demand sharply in September.

Domestic market demand moved up by 36.4% over the same period in 2008 and by 6.5% over August 2009. However, international demand dropped by 22.4% year-on-year due to the reduction in the supply of seats on less profitable international routes. Nevertheless, international demand rose by 21.1% sequentially.

In line with its focus on optimizing operating profitability, the utilization ratio of Gol's operational fleet (measured in block hours) remained above 12 hours/day versus 11.3 hours/day in the second quarter of 2009. Seating capacity per kilometer flown rose by 8.7% year over year but fell 4.2% sequentially, due to the reduction in the supply of seats in the international market.

Gol remains better positioned to capitalize on the growth of discount air travel in Brazil and the rest of Latin America given its strong market share position and efficient operations. Favorable trends in fuel prices and exchange rates are also benefiting the company's outlook.

Although competitive pressures and the impact of the global financial crisis are a source of concern, Gol's position is strong. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements. Thus, we are maintaining our Outperform recommendation on Gol ADRs.
Read the full analyst report on "GOL"
Read the full analyst report on "VRG"
Zacks Investment Research

EMR, PWRM, AVCT, CSRH, MSFT, CVAT, PALM, AQNM, HON, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 06 Oct 2009 19:42:52 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday October 6, 2009 DrStockPick.com Stock Report! EMR, PWRM, AVCT, CSRH, MSFT, CVAT, PALM, AQNM, HON ************************************************************** EMR, Emerson Electric Co. and AVCT, Avocent Corporation EMR a diversified global technology company, engages in designing and supplying product technology and delivering engineering services to various industrial and commercial, [...]

GD, PWRM, NOC, CSRH, CVAT, LMT, RTN, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 06 Oct 2009 16:02:52 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday October 6, 2009 DrStockPick.com Stock Report! GD, PWRM, NOC, CSRH, CVAT, LMT, RTN ************************************************************** GD, General Dynamics Corp. GD is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. GD will provide enterprise information technology [...]

CSRH.OB Consorteum Holdings Inc. has Identified Several new key Business Opportunities

Dr. Stock Pick — Tue, 06 Oct 2009 12:30:18 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Tuesday October 6, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc. Provides Corporate Update Consorteum Holdings, Inc. (OTCBB: CSRH) announced a corporate update with respect to its business activities. Over the course of the past 60 days, several meetings and presentations have occurred between [...]

Two Companies Profiting From the “Fuel of the Future”

Investment U — Mon, 05 Oct 2009 19:51:55 +0000

Two Companies Profiting From the “Fuel of the Future” by Louise Harris, Investment U Research You don’t have to look far to find one of today’s big economic and market buzz phrases: Green investing. From green clothing websites, to CNN headlines heralding biofuel, companies are trying their best to capitalize on growing consumer [...]

Opko Health’s New Acquisition (AMEX:OPK)

Jyotsna Ramani — Mon, 05 Oct 2009 12:00:11 +0000

Formerly known as Ophthalmic Technologies Inc. Opko Health has recently agreed to acquire Chilean pharmaceutical company named Pharma Genexx for around US$ 16 million in cash. One of the reasons why this ...

TEF Preps 4G LTE Trial – Analyst Blog

Zacks Market Commentaries — Fri, 02 Oct 2009 23:06:11 +0000

Spanish Telecom giant Telefonica (TEF) has unveiled the details of a large-scale field trial project related to the company’s 4G network services, which is based on the Long Term Evaluation (“LTE") mobile broadband technology.

The company will test run its 4G LTE network in six countries across Europe and Latin America. The outcome of the trials will help Telefonica to chalk out its next phase of network deployment strategy.

Telefonica will conduct 4G LTE trials during the next six months in multiple European countries such as Czech Republic, Germany, Spain and the UK, while the Latin American trials will be staged in Brazil and Argentina. The company has already conducted its first LTE trial in Madrid in April 2009, which has demonstrated encouraging throughput levels.

Telefonica has also announced network infrastructure and equipment vendors to facilitate the field testing. It has reportedly selected six technology providers: Alcatel-Lucent (ALU), Ericsson (ERIC), Huawei, NEC, Nokia Siemens Networks and ZTE.

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

Telefonica has recently expanded its strategic alliance with the second-largest Chinese carrier China Unicom (CHU). This extended collaboration is expected to offer significant technological and operational synergies. Additionally, the companies are likely to collaborate in future technology upgrades, such as the development of 4G LTE technology.

By moving to the 4G LTE network, Telefonica will offer its customers super-fast mobile broadband experience, representing an encouraging opportunity to improve customer retention. The company hopes to offer peak network speed of up to 340 Mbps in ideal conditions. Moreover, the ultra high-bandwidth multimedia data applications fostered by the 4G LTE network will boost revenue per user through increased minutes of use.

Read the full analyst report on "TEF"
Read the full analyst report on "ALU"
Read the full analyst report on "ERIC"
Read the full analyst report on "CHU"
Zacks Investment Research

IMCI, GRMN, AQNM, CVS, CSRH, LVLT, CVAT, LMT, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 02 Oct 2009 18:39:49 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday October 2, 2009 DrStockPick.com Stock Report! IMCI, GRMN, AQNM, CVS, CSRH, LVLT, CVAT, LMT ************************************************************** IMCI, Infinite Group Inc., IMCI.OB IMCI is a world-class IT services and solutions provider serving a range of government and commercial organizations. Headquartered in Pittsford, New York, with offices in the Washington, D.C., [...]

CSRH Consorteum Holdings Inc. Provides Corporate Update

Dr. Stock Pick — Fri, 02 Oct 2009 16:41:09 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday October 2, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc. Provides Corporate Update Consorteum Holdings, Inc. (OTCBB: CSRH) announced a corporate update with respect to its business activities. Over the course of the past 60 days, several meetings and presentations have occurred [...]

IMCI, IBM, PWRM, ADSK, CSRH, CVAT, ADBE, HON, DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 01 Oct 2009 18:45:26 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday October 1st, 2009 DrStockPick.com Stock Report! IMCI, IBM, PWRM, ADSK, CSRH, CVAT, ADBE, HON ************************************************************** IMCI, Infinite Group Inc., IMCI.OB IMCI is a world-class IT services and solutions provider serving a range of government and commercial organizations. Headquartered in Pittsford, New York, with offices in the Washington, [...]

Consorteum Holdings Inc. (CSRH.OB) Updates Investor Community

QualityStocks — Thu, 01 Oct 2009 14:03:59 +0000

Consorteum Holdings, Inc. (OTCBB: CSRH) this morning issued a corporate update to investors concerning its business activities. Over the last 60 days, the company has engaged in several meetings and presentations with various corporations, private and public, to further the development of its Card Programs, Merchant Discount Rates and new Joint Venture business relationship. Through [...]

Consorteum Holdings Inc. Provides Corporate Update

Dr. Stock Pick — Thu, 01 Oct 2009 11:59:10 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Thursday October 1st, 2009 DrStockPick.com Stock Report! CSRH, Consorteum Holdings Inc, CSRH.OB ********************************************************** Consorteum Holdings Inc. Provides Corporate Update Nevada, October 1st, 2009. Consorteum Holdings, Inc. (OTCBB: CSRH) is pleased to announce a corporate update with respect to its business activities. Over the course of the past 60 days, [...]

RBC to Buy JPMorgan’s RIA Unit – Analyst Blog

Zacks Market Commentaries — Wed, 30 Sep 2009 19:57:42 +0000

Royal Bank of Canada (RY) announced yesterday that it has agreed to acquire JPMorgan Chase & Company’s (JPM) third-party registered investment advisor (RIA) servicing business. Royal Bank of Canada (or RBC) took this step to expand its U.S. wealth management division.

Following the acquisition, the RIA business of JPMorgan will become a part of RBC Advisor Services, a unit of RBC Wealth Management's U.S. division which provides custody and clearing services to third-party registered investment advisors.

The wealth management division of RBC directly serves affluent and high net worth clients in Canada, the United States, Latin America, Europe and Asia with a full suite of investment, trust and other wealth management solutions. The division recruited more than 300 financial consultants so far in fiscal 2009. We expect the recent deal to enhance its competitive position in the RIA marketplace.

Pending regulatory approvals and other customary closing conditions, the deal is expected to close in the second quarter of 2010.

The biggest lenders of Canada were at the top to emerge from the worldwide financial turmoil. They did not accept government bailouts, but maintained high levels of excess capital.

Though strong trading environment is expected to somewhat offset deteriorating asset quality of RBS, there are concerns related to its U.S. real estate exposure. The management intends to reduce U.S. acquisitions in the near term as they realign their U.S. operations. However, we expect U.S exposure to continue to result high loss rates for awhile.
Read the full analyst report on "RY"
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Zacks Investment Research

PFE, PWRM, TXN, CSRH, AA, CVAT, DOW, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 29 Sep 2009 19:11:55 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday September 29, 2009 DrStockPick.com Stock Report! PFE, PWRM, TXN, CSRH, AA, CVAT, DOW ************************************************************** PFE, Pfizer Inc. PFE is the world’s premier biopharmaceutical company taking new approaches to better health. We discover, develop, manufacture and deliver quality, safe and effective prescription medicines to treat and help prevent disease [...]

Axial Vector Energy Corp. (AXVC.PK) Management Advisory Team

QualityStocks — Tue, 29 Sep 2009 15:11:08 +0000

Axial Vector Energy Corp., a leader in energy conversion efficiency, is fortunate in that it is run by one of the most seasoned international management and advisory teams, with over a century of combined experience. This is critical in starting and growing a company, obtaining the required capital, locking in the rights to key products [...]

CVAT.OB Cavitation Technologies, Inc. CTI Technology Gives Biodiesel Industry New Life — CTI and DOW Chemical Are Jointly Conducting Trials for ALS to Implement New Third Generation Biodiesel Technology

Dr. Stock Pick — Tue, 29 Sep 2009 12:36:29 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Tuesday September 29, 2009 DrStockPick.com Stock Report! CVAT, Cavitation Technologies Inc, CVAT.OB ************************************************************** CTI Technology Gives Biodiesel Industry New Life — CTI and DOW Chemical Are Jointly Conducting Trials for ALS to Implement New Third Generation Biodiesel Technology. Cavitation Technologies, Inc. (CTI) (OTCBB: CVAT), a “Green-Tech” company, was established [...]

XIENCE V to Launch in China – Analyst Blog

Zacks Market Commentaries — Mon, 28 Sep 2009 21:28:32 +0000

Abbott Labs (ABT) is looking to launch its XIENCE V Everolimus Eluting Coronary Stent System in China in the fourth quarter of 2009. The company recently received approval from the Chinese State Food and Drug Administration (SFDA) for the treatment of coronary artery disease (CAD).

In our opinion, the launch of XIENCE V in China should bring in significant incremental revenues for the company’s Vascular Product division, which posted sales of $2.2 billion in 2008. China is the second-largest drug eluting stent market in the Asia-Pacific region after Japan. With the launch in China, XIENCE V will be available in every Asia-Pacific market except Japan, where the product is currently being reviewed by the regulatory authority. XIENCE V’s launch in Japan in early 2010 could potentially add another $500 million market opportunity.

CAD is the leading cause of death in China -- according to the China Chronic Heart Disease 2006 annual report, nearly 50% of all deaths annually in China are due to CAD. Moreover the occurrence of the disease has been increasing steadily every year. Each year, about 150,000 patients undergo a stent procedure for the treatment of CAD, with the number of procedures is growing by more than 20% annually.

Following the launch of XIENCE V, Abbott has become a major player in the drug-eluting stent (DES) market. XIENCE V has been taking significant domestic and international share from Boston Scientific’s (BSX) Taxus (paclitaxel-eluting system), Medtronic’s (MDT) Endeavor, and Johnson & Johnson’s (JNJ) Cypher (sirolimus-eluting system) drug-eluting stents.

Data on XIENCE V compared to both Taxus and Cypher shows XIENCE V to be the best available product on the market with respect to reducing rates of target revascularization, reducing rates of stent thrombosis, and providing a reduction in risk of major cardiac events (MACE) and all-cause mortality.

Abbott is currently working on a next-generation drug coated stent called XIENCE PRIME. PRIME is already available in Europe and other countries throughout Asia-Pacific and Latin America, and is currently in a large scale clinical program called SPIRIT PRIME in the U.S. If approved, PRIME could hit the U.S. market in the first half of 2012.

Abbott’s Vascular Products segment should continue posting robust growth mainly due to the strong performance of XIENCE V. We have a Neutral rating on Abbott.
Read the full analyst report on "ABT"
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Zacks Investment Research

Watsco Focuses on Market Share – Analyst Blog

Zacks Market Commentaries — Mon, 28 Sep 2009 18:33:00 +0000

Watsco, Inc. (WSO) has increased its market share significantly through acquisitions. Since 1989, the company has acquired around 53 HVAC/R businesses. Despite the economic slowdown, Watsco continues to actively seek acquisition opportunities to allow further penetration into existing markets and expand into new geographic markets.

WSO is the largest distributor of air conditioning, heating, and refrigeration equipment, as well as related parts and supplies (HVAC/R), in the United States.

In our view, the company has plenty of room for growth. With the industry size approximated at $26 billion and annual growth set to grow well above 3%, Watsco represents a very small portion of the overall pie (8%). There are plenty of acquisition opportunities for the company as the HVAC/R distribution industry contains over 1,300 companies.

Apart from growth through acquisitions, Watsco aims to increase sales per location and gain market share by boosting its product offering.

The company recently formed a joint-venture with Carrier Corporation to distribute Carrier, Bryant and Payne products throughout the U.S. Sunbelt, Latin America and the Caribbean. This joint-venture not only adds significant new product groups to the company's sales mix, but also marks its entry into international markets with the addition of the Latin American and Caribbean sales operations of Carrier.

Moreover, Watsco is offering private label products to customers looking for exceptional value. We believe Watsco is becoming a one-stop shop for contractors and dealers.

With a healthy cash generation ability (operating cash flow of $94.1 million and free cash flow of $90.5 million over the last 12 months) and a strong balance sheet, Watsco has adequate financial flexibility in invest further in business expansion.

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

Stream Global Services Inc. (OOO) Customer Service is Not Dead

QualityStocks — Mon, 28 Sep 2009 17:03:38 +0000

As the world economy begins to find its footing after recent economic events, companies are increasingly looking at costs and how to reduce and control them. In past years, capital was cheap and many institutions let capital flow with little regard for cost controls. Although this was poor judgment, it was nonetheless common practice. Today, [...]

XRX, PWRM, ABT, CSRH, CMCSA, CVAT, FMCN, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 28 Sep 2009 16:34:01 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday September 28, 2009 DrStockPick.com Stock Report! XRX, PWRM, ABT, CSRH, CMCSA, CVAT, FMCN ************************************************************** XRX, Xerox Corp. XRX engages in the development, manufacture, marketing, servicing, and financing of document equipment, software, solutions, and services worldwide. XRX said Monday it will buy Affiliated Computer Services Inc. for $6.4 billion [...]

PWRM, SHMN, MRK, TSPG, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 28 Sep 2009 14:49:55 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday September 28, 2009 DrStockPick.com Stock Report! PWRM, SHMN, MRK, TSPG, AQNM ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. 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 [...]

SHMN, PWRM, CVAT, DrStockPick.com Watch List! for Monday September 28, 2009, SOHM Inc., SHMN.PK, Cavitation Technologies Inc, CVAT.OB and Power 3 Medical Products Inc, PWRM.OB

Dr. Stock Pick — Mon, 28 Sep 2009 05:02:56 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ DrStockPick.com Watch List! My Picks for Monday September 28, 2009, are: ************************************************************** 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 [...]

CVAT, JNJ, CSRH, MRK, PWRM, MU, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 25 Sep 2009 18:51:18 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday September 25, 2009 DrStockPick.com Stock Report! CVAT, JNJ, CSRH, MRK, PWRM, MU ************************************************************** CSRH, Consorteum Holdings Inc, CSRH.OB CSRH is a company in the financial services, payment and transaction processing industries. CSRH provides electronic transaction processing and management services to financial institutions, healthcare, government, public and private sector companies. [...]

CVAT, POT, MOS, DrStockPick.com Stock Report! Cavitation Technologies Inc., Potash Corp. of Saskatchewan, Inc. and Mosaic Co.

Dr. Stock Pick — Fri, 25 Sep 2009 15:16:09 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday September 25, 2009 DrStockPick.com Stock Report! CVAT, POT, MOS ************************************************************** CVAT, Cavitation Technologies Inc, CVAT.OB CVAT is a “Green-Tech” company, established in 2006 to become a world leader in the development of new cutting edge technologies for the, vegetable oil refining, renewable fuel, petroleum, water treatment, wastewater sanitation, [...]

DIRECTV Tender Offer Expires – Analyst Blog

Zacks Market Commentaries — Thu, 24 Sep 2009 21:17:28 +0000

Yesterday, DIRECTV Holdings, a wholly-owned subsidiary of the DIRECTV Group, Inc. (DTV) announced the expiration of its cash tender offer, which commenced on Sept. 14, 2009. The company intended to purchase all or part of its outstanding 8.375% senior notes of $910 million due 2013. Citigroup Global Markets, Credit Suisse Securities and J.P. Morgan Securities managed the tender offer.

To fund its cash tender offer, DIRECTV raised $2 billion through private placement of debt securities that closed on Sept. 22, 2009. The company sold 4.75% senior notes of $1 billion due 2014 (issue price of $99.729) and another 5.875% senior notes of $1 billion due 2019 (issue price of $99.259). Part of the fund raised will also be utilized for general business purposes.

On the expiration of the cash tender offer, DIRECTV has purchased $583.1 million of the total principal amount of senior notes due 2013, representing approximately 64.1 % of the $910 million total principal amount. The holders of senior notes will receive $1,031.25 per $1,000 principal amount. The company will also pay interest if due and outstanding on the notes purchased pursuant to the offer to the date prior to the settlement date (Sept. 22, 2009).

DIRECTV also issued a Notice of Optional Redemption for the remaining principal amount aggregating $326.9 million (approximately 35.9% of the $910 million total principal amount) at a price of 102.792% of the principal amount plus interest accrued as on Oct. 23, 2009. DIRECTV Group is the world’s leading provider of satellite delivered digital television, video, and broadband. The company provides digital television service to more than 18.3 million customers in the United States and over 6 million customers in Latin America.
Read the full analyst report on "DTV"
Zacks Investment Research

Zelaya Has Gone Batshit Crazy

Robert Amsterdam — Thu, 24 Sep 2009 20:38:00 +0000

I've written in various places about the coup in Honduras, and stated in radio interviews that I support Washington's stance and the efforts of Oscar Arias to bring resolution to the conflict and restore constitutional normality. Even if Manuel "Mel"...

CSRH, CME, PWRM, GRMN, CVAT, HERO, CVX , DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 24 Sep 2009 19:05:53 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday September 24, 2009 DrStockPick.com Stock Report! CSRH, CME, PWRM, GRMN, CVAT, HERO, CVX ************************************************************** CSRH, Consorteum Holdings Inc, CSRH.OB CSRH is a company in the financial services, payment and transaction processing industries. CSRH provides electronic transaction processing and management services to financial institutions, healthcare, government, public and private [...]

AONE, PWRM, CSCO, CVAT, XOM, CSRH, BA, DrStockPick.com Stock Report!

Dr. Stock Pick — Thu, 24 Sep 2009 17:13:43 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Thursday September 24, 2009 DrStockPick.com Stock Report! AONE, PWRM, CSCO, CVAT, XOM, CSRH, BA ************************************************************** AONE, A123 Systems, Inc. AONE develops and manufactures advanced lithium-ion batteries and battery systems for the transportation, electric grid services and consumer markets. Founded in 2001 and headquartered in Massachusetts, AONE’s proprietary nanoscale electrode [...]

DIRECTV Raises Debt – Analyst Blog

Zacks Market Commentaries — Thu, 24 Sep 2009 16:45:58 +0000

On Sep 22, 2009, DIRECTV Holdings and DIRECTV Financing Company, the subsidiaries of the DIRECTV Group, Inc. (DTV) announced the completion of the $2 billion debt financing, previously announced on Sep 14, 2009.

The debt financing consists of 4.75% senior notes of $1 billion due 2014 (issue price of $99.729) and another 5.875% senior notes of $1 billion due 2019 (issue price of $99.259).

DIRECTV intends to utilize the net proceeds to purchase its outstanding 8.375% senior notes of $910 million due 2013, and also for general business purposes.

DIRECTV Group is the world’s leading provider of satellite delivered digital television, video, and broadband. The company provides advanced communication services and develops a broad range of entertainment, information, and communication services for home and business use, including video, data, voice, multimedia, and Internet services.

DIRECTV provides digital television service to more than 18.3 million customers in the United States and over 5.9 million customers in Latin America .

Yesterday the stock closed at $27.28, up 1.8% from the previous day’s session.
Read the full analyst report on "DTV"
Zacks Investment Research

T, PWRM, ABT, CVAT, VZ, CSRH, TSPG, FLIR, DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 23 Sep 2009 18:48:54 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday September 23, 2009 DrStockPick.com Stock Report! T, PWRM, ABT, CVAT, VZ, CSRH, TSPG, FLIR ************************************************************** T, AT&T, Inc. T is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. T [...]

PWRM, RTN, CVAT, LMT, CSRH, INTU, TSPG, MRK, QGEN, DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 23 Sep 2009 16:52:13 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday September 23, 2009 DrStockPick.com Stock Report! PWRM, RTN, CVAT, LMT, CSRH, INTU, TSPG, MRK, QGEN ************************************************************** RTN, Raytheon Company RTN is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. RTN has surpassed another milestone on its Modernized User Equipment program [...]

There’s No Flu Shot for the Thrift Bug

Bill Bonner — Wed, 23 Sep 2009 12:21:11 +0000

pYou wanna know what is going on? David Rosenberg explains…/p p“US consumers are cutting back, and where they are not cutting back, they are scaling down. This new cycle is all about ‘getting small’ and it is deflationary. For yet another in strongthe litany of signs pointing in the direction of social change towards thrift/strong, have a look at what is transpiring at the upper echelons of the income strata – Now Even Millionaires See the Benefits of Budgeting on page B5 of the Saturday emNYT/em is a must read./p p“Not only are the rich trading down, but the article quotes a high net worth financial advisor who said ‘many of our clients are very happy to be sitting on bond portfolios and#8230;/p