U.S. Cellular (USM), the wireless subsidiary of Telephone and Data Systems (TDS), reported disappointing third-quarter 2009 results with earnings per share of 41 cents, coming in below the Zacks Consensus Estimate of 57 cents. It also declined significantly from the year-ago EPS of $1.02. Net income plunged 60% year over year to $35.6 million as a result of decreased sales and higher operating costs.

Top-line Hit by Lower Roaming Revenue

The Chicago-based carrier reported operating revenue of $1,058 million, down 3% from $1,092 million a year ago. This decline is attributable to lower service revenue, which decreased 3% year over year to $984.9 million due to a 26% year over year reduction in inbound roaming revenues, primarily resulting from Verizon's (VZ) acquisition of Alltel.

Decline in roaming revenue was offset by healthy data revenue, which grew 34% over the prior-year quarter to $174.3 million, accounting for 18% of service

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Net earnings of $1.51 per share for paint and coating maker Sherwin Williams Company (SHW) in the third quarter of 2009 exceeded the Zacks Consensus Estimate of $1.35 per share and improved marginally from the $1.50 reported in the same period of the previous year. Cost reduction helped the modest improvement in profits. In the first nine months of 2009, the company reduced its selling, general and administrative expenses by nearly $94 million, and improved its working capital ratio to 12.5% from 13% last year. Net sales in the quarter declined 64% year over year to $2 billion. Weak demand in the residential and commercial architectural paint market and lower sales in industrial coatings and non-paint categories lead to a 13.5% decrease in net sales in the Paint Stores segment to $1.22 billion. Net sales of the Consumer Group decreased 7.1% to $330.5 million in ...

Duke Energy Corporation (DUK) will install four solar panels in North Carolina in the first phase of its $50 million rooftop solar project. The four projects with a combined 4.6MW of annual capacity are expected to be completed by March 2010.   Duke Energy is focusing on green energy in the light of recent progress in the American Clean Energy and Security Act. The act stipulates stringent caps against carbon dioxide emissions. Also North Carolina 's renewable energy standard stipulates each public electric utility to generate a minimum of 12.5% of its North Carolina retail customers' electricity needs through new renewable energy sources or energy efficiency measures by fiscal 2021.  Duke Energy also has 634MW of land-based wind energy in Pennsylvania , Texas and Wyoming , another 99MW under construction and an additional 251MW of wind projects scheduled to begin operations in 2010. According to a report ...

U.S. Bancorp (USB) has signed a deal with BB&T Corp. (BBT) to acquire the latter’s banking operations in Nevada . As per the agreement, U.S. Bank National Association, U.S. Bancorp’s lead bank, will purchase about $800 million in deposits and certain branches of BB&T’s Nevada banking operations.   The deal is subject to regulatory approval and is expected to close in early 2010. The acquisition involves deposits of those branches that BB&T had recently acquired from the Federal Deposit Insurance Corporation (FDIC) as receiver for Colonial Bank.  The purchase will fortify U.S. Bancorp’s business in Nevada . The company expects this acquisition to meet or exceed the company’s internal rate of return and earnings per share accretion targets.  Last week, US Bancorp has announced that its lead bank, U.S. Bank, has agreed to buy the bond trustee business of First Citizens Bank, a subsidiary of ...

As part of its strategic acquisitions, US Bancorp (USB) has announced on Wednesday that its lead bank, U.S. Bank, has agreed to buy the bond trustee business of First Citizens Bank, a subsidiary of First Citizens BancShares Inc. (FCNCA). Post acquisition, U.S. Bank’s corporate trust division will have $2.4 trillion in assets under administration, 725,000 bondholders and over 114,000 client issuances. The purchase will aid in growing its corporate banking and fixed income business in the southeast market. Also it complements the bank’s existing bond trustee business in North Carolina, South Carolina and Virginia. Currently, U.S. Bank has 46 corporate trust offices across the country and offers a complete line of trust services. Earlier this week, US Bancorp also announced its acquisition of the mutual fund administration and accounting servicing division of Fiduciary Management, Inc. This division of Fiduciary has over $8 billion in assets ...

US Bancorp (USB) and privately held SolarCity have doubled the size of their fund to $100 million for financing solar projects in 2009.  In June this year, U.S. Bancorp Community Development Corporation, a unit of U.S. Bancorp and SolarCity entered into an agreement to install solar electric panels on homes and businesses in California, Oregon and Arizona for customers who do not prefer to pay the upfront cost of buying and installing a solar energy system.  Financing solar installations is attractive for investors like banks as they can enjoy tax breaks including a solar tax credit. The federal tax credit is equivalent to 30% of a project's cost. SolarCity could also apply for the cash equivalent of the tax credit from the U.S. Department of Treasury.  U.S. Bancorp Community Development Corporation (USBCDC) has assets over $5.5 billion and is the largest New Markets tax credit ...

On Sept. 2, 2009, US Bancorp (USB) announced the sale of 3.5 year senior notes worth $350 million. The size of the deal represents a 40% increase from the originally planned $250 million.   Barclays (BCS) acted as the sole book-runner for the sale of these notes. The notes carry a coupon rate of 2.125% and will mature on Feb 15, 2013. The notes will pay coupons semi-annually with the first payment expected on Feb 15, 2010. The company will use the sale proceeds of the debentures for general corporate purposes. Standard &Poor's Ratings Services (S&P) assigned an 'A+' rating while Fitch ratings assigned an 'AA-' rating to the senior notes. Moody's assigned US Bancorp’s 'AA3' rating to the notes. US Bancorp’s second quarter earnings of 12 cents per share were a penny short of the Zacks Consensus Estimate, reflecting deteriorating credit quality. However, we have been encouraged ...

Companies featured in this edition of the newsletter: ACTC, CVM, CUR, DKAM, FMTI, ICLK, IMUC, IWEB, OMCM, ONEZ, SIHI, TAGS

Markets took pause from their four week run this week, as some less than encouraging economic reports coupled with profit taking led to slight declines in all of the major indices. All told, the Dow ended the week down 0.5%, surrendering 48 points to close at 9321, bringing its YTD gains to 6.2%. The Nasdaq was off 0.7%, closing at 1985, up a healthy 25.9% on the year, while the S&P 500 and Russell 2000 were down 0.6% and 1.5% respectively, paring their yearly gains to 11.2% and 12.9%.

Disappointing economic data relating to inventories and consumer sentiment soured the mood for much of the week, as worse than expected declines in retail sales, consumer sentiment, and business and wholesale inventories gave investors cause for concern. Retail sales

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First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies and America’s largest provider of advanced property and ownership information, analytics and services today introduced RealQuest(R) Home Value Pro, a free Apple iPhone application that enables individuals to view comprehensive market data on over 140 million residential properties in the United States from the iPhone(R).

Harris Stratex Networks, Inc. (Nasdaq: HSTX), a leading provider of wireless solutions that enable the evolution of next-generation fixed and mobile broadband networks, today announced it has signed a contract with ICOMM, one of India’s leading groups in the field of telecom, power transmission and distribution EPC, solar and infrastructure, to supply, install, commission and maintain an IEEE 802.16e mobile WiMAX network for Bharat Sanchar Nigam Ltd (BSNL). Under the multi-year contract, Harris Stratex will supply its StarMAX(TM) WiMAX solution to extend BSNL’s public wireless access network to provide high-speed wireless

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PennyOmega.com Short Highlights Before the Bell!

PennyOmega.com Short Highlights Before The Bell!

PennyOmega.com Stocks Upgraded, Downgraded and Short Highlights Before the Bell Tuesday August 11, 2009

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IXYS Corporation (NASDAQ:IXYS) announced today its extension of its diode rectifier module range to 3,400 volts repetitive reverse voltage. The dual rectifier diode module with a part number MDD175-34N1 features two diodes in an industry standard module. Each diode is rated at 175 Amps average current at a case temperature of 100 degrees centigrade and rated to 3,400V operation up to 125 degrees centigrade.

Universal Power Group, Inc. (NYSE Amex: UPG), a Texas-based distributor and supplier of batteries and related power accessories and a provider of

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