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: Southern Copper Corporation (PCU), Logitech International (LOGI), Cisco Systems Inc. (CSCO), Microsoft Corp. (MSFT) and Koninklijke Philips Electronics NV (PHG).

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Here are highlights from Wednesday’s Analyst Blog:

Southern Copper’s Earnings Jump

Southern Copper Corporation (PCU), one of the leading copper producers in the world, posted net earnings of 37 cents in the third quarter of 2009, better than the Zacks Consensus Estimate of 31 cents. Earnings jumped 78.6% from 21 cents sequentially while it declined 22.3% from 47 cents year on year. The company attributed lower costs for driving earnings. Operating costs decreased 15.8% year over year due to higher productivity.

Copper production in the quarter improved 1.3% to 120,240 tons from 118,657 tons, driven by higher production at the La Caridad mine in Mexico and the Peruvian mines, on the back of better ore grades. Molybdenum production increased 14.3% to 5,191 tons, compared to 4,541 tons in the year-ago quarter. Higher ore grades and recoveries lead to an increase of 631 tons at La Caridad and 734 tons production at the Cuajone mine in Peru. These increases were partially offset by 715 tons of lower production at the Toquepala mine in Peru due to lower ore grades.

Logitech Acquires LifeSize

Logitech International (LOGI) announced that it has agreed to acquire privately held LifeSize Communications of Austin, Texas for $405 million in cash. LifeSize is a global leader in high definition (HD) video communication solutions, with more than 9,000 video conferencing customers across 80 countries in large enterprises, small-to-medium businesses (SMBs) and public healthcare, education and government organizations.

The acquisition will enable Logitech to extend its leadership in video communication beyond the desktop.

Logitech and LifeSize plan to pursue existing and new relationships with unified communications, collaboration and VoIP industry partners and competitors to drive the development of an open eco-system for interoperable video communication.

LifeSize expects approximately $90 million in revenues in CY 2009, with CY 2010 revenues expected to grow between 40% and 60%. Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011, ending March 31, 2011, and positive thereafter.

For a long time, videoconferencing was limited to big businesses that could afford to build expensive systems in their conference rooms. But videoconferencing has become more accessible because Internet connections are commonplace, video has become more efficient and the price has dropped for high-definition cameras and displays.

Now, many companies are trying to reach small businesses and individuals that previously used low-quality webcams on PCs. In the previous month, Cisco Systems Inc. (CSCO) announced its intension to buy Tandberg, a Norwegian video communications company, for $3 billion. Tandberg makes smaller and less expensive videoconferencing tools that can be fitted on desks.

Logitech engages in design, manufacture, and marketing of personal peripherals for personal computers and other digital platforms in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company was founded in 1981 and is based in Apples, Switzerland. Major competitors include Microsoft Corp. (MSFT) and Koninklijke Philips Electronics NV (PHG).

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

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Logitech and LifeSize plan to pursue existing and new relationships with unified communications, collaboration and VoIP industry partners and competitors to drive the development of an open eco-system for interoperable video communication.

LifeSize expects approximately $90 million in revenues in CY 2009, with CY 2010 revenues expected to grow between 40% and 60%. Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011, ending March 31, 2011, and positive thereafter.

For a long time, videoconferencing was limited to big businesses that could afford to build expensive systems in their conference rooms. But videoconferencing has become more accessible because Internet connections are commonplace, video has become more efficient and the price has dropped for high-definition cameras and displays.

Now, many companies are trying to reach small businesses and individuals that previously used low-quality webcams on PCs. In the previous month, Cisco Systems Inc. (CSCO) announced its intension to buy Tandberg, a Norwegian video communications company, for $3 billion. Tandberg makes smaller and less expensive videoconferencing tools that can be fitted on desks.

Logitech engages in design, manufacture, and marketing of personal peripherals for personal computers and other digital platforms in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company was founded in 1981 and is based in Apples, Switzerland. Major competitors include Microsoft Corp. (MSFT) and Koninklijke Philips Electronics NV (PHG).

We currently have a Neutral recommendation on LOGI.

Recent Key Developments
 
Frontier is expanding its broadband network in rural/underprivileged markets in West Virginia. The company has applied for federal funding of $55 million to deploy and connect fiber-optic cable from its central office to key public facilities, which will allow broadband speeds of up to 100 Meg. 
 
Moreover, Frontier is set to lead the pure-play rural telecom market by acquiring the rural fixed-line business of Verizon Communications (VZ) in 14 states for approximately $8.6 billion. The company recently received shareholders approval as well as approvals from the states of California, Nevada and South Carolina for this transaction.
 
The acquisition, which is expected to complete in second-quarter 2010, will offer meaningful cost synergies and opportunities for revenue growth through expanded broadband penetration, attractive bundled service offerings and improved customer retention.

Ericsson will be able to firmly focus on its research and development, strengthen relationships with third-parties, streamline relevant business practices and ensure wireline access product integration to provide AT&T with the best and most innovative solutions available.

Already having approved Ericsson's GPON Fiber to the Home (FTTH) solution for general deployment, AT&T will now start integrating Ericsson's DSL portfolio for Fiber to the Node (FTTN) and IP DSLAM solutions to support its offerings like IPTV, High Speed Internet and VoIP over an all IP network infrastructure.

As the technology and market leader in GSM-based equipment, Ericsson stands to benefit from the continued growth of the wireless industry, especially in emerging markets. Of the 4.16 billion wireless subscribers worldwide, about 3.84 billion use GSM-based networks and with global wireless penetration of around 50%, subscriber growth is expected to remain fairly strong.

Having established partnerships with local firms and set up R&D centers in numerous locations, Ericsson is well positioned to win additional network expansion contracts in Asia over the next couple of years. The company has also been winning more than its share of 3G contracts, including one to provide High Speed Downlink Packet Access (HSDPA) technology to Cingular Wireless. HSDPA is an improvement on the basic W-CDMA technology offering faster data rates (similar to fixed broadband).

Ericsson is the world's leading provider of technology and services to telecom operators. As the leader in 2G, 3G and 4G mobile technologies, the company provides support for networks to over 1 billion subscribers and has a dominant position in managed services. Its portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. Alcatel-Lucent (ALU) is a major competitor. We currently have a Neutral recommendation on ERIC.

Apple had earlier approved iCall, FriendCaller, Nimbuzz, Skype and Spotify app for its devices and now Vonage has been added to Apple’s App store.
 
All of these VoIP services use WiFi services to make calls. The apps that compete with Apple’s own services had been rejected earlier. However, Apple allowed VoIP apps that can work over WiFi only.
 
We believe that Apple will be benefited from the strong position of Vonage in the VoIP industry but we remain unsure about how different Vonage services will be from other app providers.
 
Carriers like Vonage provide services that are much cheaper than most traditional phone plans particularly for long distant calls, as a result of which consumers frequently change their preferences. Thus, it will be interesting to see how many new customers the Vonage service will be able to get for Apple.
 
Earlier, Apple rejected the Google (GOOG) Voice application from its app store, which is now subjected to an ongoing investigation by the FCC. Apple said that AT&T (T) in the U.S. bars it from allowing a customer to use AT&T's mobile network without explicit permission. This is due to stringent policies from AT&T, Apple’s exclusive carrier that blocks VoIP on 3G network due to quality issues.
 
AT&T would not want further competition from these service providers and may disapprove Vonage’s iPhone app to work over AT&T’s mobile network.
 
While we have several concerns over Apple’s new approval, shares of Vonage jumped approximately 40% after it received approval from Apple.

A group of investors, with the largest being private equity firm Silver Lake, bought the 65% stake for $1.9 billion in cash and $1.25 million in short-term notes. eBay acquired Skype for a total of $3.1 billion in 2005 and subsequently wrote off $1.4 billion in 2007. The valuation indicates that the company made a profit on the deal. It also retained a share in future profits through its 35% stake and a seat on the Skype board.

Skype owns software that employs VoIP technology to offer users free voice and video calls, instant text messaging and file sharing. eBay’s former CEO had acquired the company to facilitate communication between buyers and sellers using its shopping portal. But the strategy failed to take off and the business was a constant distraction to management. The company had to part with $530 million in payment to Skype’s technology founders, Niklas Zennström and Janus Friis, and the ensuing legal battle prompted eBay to start developing a new technology to drive business.

The deal is also likely to be beneficial for Skype as it will improve its core technology. Since Silver Lake owns telecom equipment company Avaya, there could be significant synergies in offering. Skype has developed mobile applications for Apple’s (AAPL) iphone and Research In Motion’s (RIMM) Blackberry. It also agreed to embed its services on certain Nokia (NOK) handsets.

The key question today is whether eBay will offload PayPal that is currently hindered by the scope of the company’s sales. PayPal is a play in the growing ecommerce market and broadening its scope would be a key to future growth. eBay’s own user base could also be more satisfied, since it would not need to force the system on them.

Chicago, IL – August 13, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Comcast Corp. (CMCSA), Cablevision System Corp. (CVC), Time Warner Cable Inc. (TWC), Verizon Communications (VZ) and AT&T (T).

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:

DOCSIS 3.0 - The New Initiative

DOCSIS 3.0 (also called Wideband network) is a digital channel bonding technique that creates one larger and faster logical pipe to support throughput of at least 100 Mbit/second. With DOCSIS 3.0, cable operators are now able to offer one of the fastest Internet speeds available in the market.

Comcast Corp. (CMCSA), the largest MSO in the U.S., has announced that it will upgrade around 40 million homes and businesses of the company’s existing networks with next-generation super-fast wideband technology by the end of 2009. Cablevision System Corp. (CVC) is also increasingly deploying DOCSIS 3.0. Time Warner Cable Inc. (TWC) is also likely to follow suit in 2010.

As residential VoIP and HDTV services continue to grow, operators are dealing with increased network traffic driven by strong demand for video download and file sharing. This massive requirement for data transport has encouraged the cable operators seeking to improve their transport offerings.

Furthermore, the U.S. telecom giants are gradually expanding their fiber-optic networks to take the fight to the cable MSOs. Verizon Communications (VZ) with FiOS network and AT&T (T) with U-Verse network are likely to make the broader entertainment, information, and communications market highly competitive.

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About Zacks Equity Research

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

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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

Follow us on Twitter: http://twitter.com/zacksresearch

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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

The year-over-year decline in revenue is attributable to lower local service, subsidy and switched access revenue coupled with decline in basic access lines, partially offset by increases in data and Internet service revenues.

Quarterly net income was $27.9 million, down 50% from the year-ago quarter, primarily due to acquisition-related expenses of $10.8 million, higher interest expenses and lower operating income which fell 16% year over year to $136.6 million.

Revenue for local services declined 8% year over year to $198.3 million while data and Internet services revenue increased 6% to $160.6 million in the same period. Switched access service revenue declined 13% year over year to $87.4 million while revenue from long-distance services fell 14% from the year-ago quarter to $40.6 million.

Frontier added approximately 13,800 high-speed Internet customers (down sequentially) and registered 613,800 (up 10% year over year) total high-speed Internet customers at the end of the quarter. Net additions to the video customer base also fell sequentially with a reported addition of 11,400 customers in the quarter, bringing the total number of customers to 157,400 (up 46% year over year).

The company recently declared a third-quarter dividend of $0.25 per share payable on Sept. 30. Dividend payment for the second quarter equates to a payout of 80% of the quarterly free cash flow. The company aims to offer 60-70% return to its shareholders in the form of dividend in 2009 based on strong free cash flow expectations.

Frontier has reaffirmed its full-year guidance for capital expenditure and free cash flow. The company continues to expect capital expenditure of $250-$270 million for the year. The projected free cash flow (excluding acquisition expenses) for 2009 remains between $460 million and $485 million.

The company lost 27,700 voice-access lines in the second quarter and had 2.19 million access lines, down 6% year over year. Frontier remains significantly challenged by the beleaguered economic condition in its service territories and contends with loss of legacy fixed telephony business to wireless and other competitive offerings including Voice over Internet Protocol (VoIP) services by cable TV operators.

In aggregate, approximately 65% of the company’s access lines were exposed to cable voice service offerings at the end of 2008 and this level is expected to increase further as competition intensifies in 2009.

Nevertheless, Frontier is set to lead the pure-play rural telecom market by acquiring the rural fixed-line business of Verizon Communications (VZ) under an agreement valued at approximately $8.6 billion.

The acquisition, if successful, will offer opportunities for revenue growth through expanded broadband penetration, attractive bundled service offerings and improved customer retention. The company may also achieve cost synergies of approximately $500 million from this transaction.

Earnings per share rose 7 cents to 39 cents from 32 cents in the year ago period. The Zacks Consensus Estimate called for 29 cents.

Net sales fell 2.9% to $965.7 million compared with $994.9 million for the year ago period. The decline was primarily due to a 4.6% decrease in sales generated by company-operated stores, a 3.2% decrease in kiosk sales, and an 18.8% increase in other sales.

Same-store sales declined 4% compared to a year ago. Sales declined in wireless accessories, digital-to-analog converter boxes, GPS products, music players and digital cameras. However, sales of netbooks, television antennas, prepaid wireless handsets, digital televisions and Voice over Internet Protocol Products rose.

Inventories fell by $48.1 million over the year ago period.

The company also grew its cash and cash equivalents to $930.8 million at the end of the quarter from $577.8 million as of June 30, 2008.

Zacks Consensus Estimates Rise

Following the estimates surprise, covering analysts moved to revise third quarter and full year estimates.

The third-quarter Zacks Consensus Estimates rose 3 cents to 31 cents in the last week with 11 out of 16 covering analysts raising.

15 out of 17 analysts also raised for the full year as the 2009 Zacks Consensus Estimate jumped 15 cents to $1.54 per share.

Value Fundamentals

RadioShack was a Zacks #1 Rank (strong buy) stock when I last reviewed it on May 29 and is now a Zacks #2 Rank (buy) stock.

It is still an attractive value stock, with a forward P/E of 10.03. It has an outstanding 1-year return on equity (ROE) of 23.84%.

As an added bonus, the company pays a dividend, with a current yield of 1.60%.

Read the May 29 analysis.

Update to Previous Value Zacks Rank Buy Stocks

JDA Software Group, Inc. (JDAS) is bucking the economic downturn as the company recently reported record second quarter results on the back of strong software sales. JDAS is trading with a forward P/E of 13.9. Read the full article.

Oriental Financial Group Inc. (OFG) continues to show strength in its key market of mid to high net worth clients as it recently surprised on earnings for the 8th consecutive time. Despite a run up in the stock price, OFG isn't expensive. It trades at just 4.1x forward earnings. Read the full article.

Cato Corporation (CTR) is finding consumers like its value-priced women's apparel as same-store sales for the first half of the year rose 1% compared to 2008. The company has surprised on estimates 3 out of the last 4 quarters by an average of 54.76%. CTR is trading at 14.9x forward earnings. Read the full article.

The Anderson's, Inc. (ANDE) is expected to report second-quarter results next week after beating the Zacks Consensus Estimate by 28 cents in the first quarter. Can it keep the momentum? Analysts are expecting 19.55% year over year earnings growth in 2009. Read the full article.

Zacks Investment Research

BT Group’s aim is to become the leading provider of networked IT services to mid and large-sized businesses and the public sector in general in Ireland. Vodafone will become the number-two player in the fixed broadband market and enjoy a 15% market share of the fixed broadband market. The value of the gross assets that are the subject of this transaction was 4.8 million euros at the end of March 2009.

In all its business segments, BT Group has been transforming itself from being a traditional telecom operator to a innovative provider of telecom solutions, and it is now taking advantage of future growth prospects, as it moves away from traditional businesses and into what it calls “New-Wave" businesses, such as broadband, Voice over Internet Protocol (VoIP), Wireless Internet Access, Networked IT services and IPTV. We believe BT Group’s New-Wave businesses are the drivers behind any growth the company will experience in the coming years, and BT Group understands that it has to constantly evolve with technology in order to stay ahead in the telecommunications business.

BT Group is an incumbent phone company providing fixed-line and data services to the United Kingdom. It owns or has stakes in operations in North America, the Asia/Pacific region, and Western Europe. BT Retail is the largest communications service provider by market share to consumers and businesses in the United Kingdom. It supplies a wide range of communication products, including voice, data, Internet, and multimedia services. The BT Wholesale segment provides network services and solutions within the United Kingdom, including its Asymmetric Digital Subscriber Line (ADSL) and Integrated Services Digital Network (ISDN) to BT Retail and BT Global Services, as well as to other communication companies, fixed and mobile network operators, and service providers.

Openreach was established in January of 2006 in response to OFCOM (UK Office of Communications) strategic review of the communications industry in the UK, and operates the physical assets of the local access and backhaul networks and provides the services which use those networks to communications providers, both internally and externally, and was spun out of BT Wholesale to become a completely independent entity from BT, although it remains wholly-owned by the BT Group. BT Global Services is BT Group’s managed services and solutions arm, serving multi-site organizations. 

We continue to maintain our Hold rating on BT Group.

Akamai Technologies, Inc. (AKAM) announced on June 26, offering of the Web Application Accelerator and IP Application Accelerator to IntraLinks, the leading provider of on-demand critical information exchange solutions. By tapping into Akamai's solution, Intralink will be able to accelerate its business application with Akamai's dynamic content. Additionally, its customers will be able to lower cost, increase productivity as well as speed up processes using its Web Application Accelerator and IP Application Accelerator platform.

According to the Chief Technology Officer of IntraLinks, using Akamai's global network routing and application acceleration services will help reduce the standard network latency over the Internet, helping customers run application within their data center. The company also anticipates that as the user base expands, users outside the U.S. will be able to access the platform at higher speeds - nearly twice the speed from previous generations.

Akamai's Web Application Accelerator service optimizes the delivery of Web-based business applications, delivering local network performance to remote users. Akamai's Web Application Accelerator solution includes a service level agreement assuring network availability, enhanced pre-fetching capabilities, strategic global deployments, as well as the addition of real-time application performance reporting.

Akamai's IP (Internet Protocol) Application Accelerator service improves the delivery of any enterprise IP-based application, delivered over the Internet to boost the speed and quality of e-mail, voice over IP services, and file transfers within an organization. Both solutions are delivered through Akamai's platform, which comprises 48,865 servers in hundreds of networks in approximately 70 countries.

Akamai's Web Application Accelerator solution has been selected by various on-demand solutions providers such as TradeBeam, the leading SaaS platform for Global Trade Management. The solution has helped TradeBeam report improved performance and accessibility of its Software as a Service (SaaS) offerings. It also helped the company to shun more than 20% in additional capital expenditures to build international data centers. In addition, Easy-Forex, a leader in online foreign exchange trading in more than 150 countries has seen application delivery performance improve by 50% using AKAM's Web Application Accelerator solution. Since implementing Akamai solution, over 70% of requests for Easy-Forex's services are now accelerated by Akamai's Web Application Accelerator.

We believe these deals will be positives for the company and will allow customers to provide a better experience to their users by addressing the challenges of bandwidth constraints and Internet traffic, help reduce network latency over the Internet, while delivering content closer to the end-user. Akamai is facing growing competition and pricing pressure as new competitors enter the market. Owners of large networks, such as AT&T (T), Google (GOOG), Yahoo (YHOO), and Limelight Networks, Inc. (LLNW) (LLNW) may decide to get more aggressive in the way they offer content and could enter the field of application accelerator solution.

We maintain our Hold rating on AKAM shares with a six-month price target of $21.00.

Chicago, IL - June 19, 2009 - Zacks Equity Research highlights Allion Healthcare Inc. (ALLI) as the Bull of the Day and Embarq (EQ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on EnCana (ECA), XTO Energy (XTO) and Chesapeake (CHK).

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:

Allion Healthcare Inc. (ALLI) is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients. The company recently reported better-than-expected 1Q09 net income of $3.5M, or EPS of $0.13, compared with net income of $1.1M and EPS of $0.06 in 1Q08.

Organic growth in 1Q09 of the company's core Specialty HIV was 9% y/y, with the aggregate number of Specialty HIV prescriptions filled in 4Q08 tallying 265,455, an increase of 3.7% y/y.

We believe current initiatives, such as the partnering with large AIDS service organizations in Seattle, for example, bodes well for increased volume growth over the short term. We maintain our BUY rating at current levels.

Bear of the Day:

We maintain our Sell rating for Embarq (EQ), the fourth largest local telephone service provider in the U.S., as access line loss continues to erode traditional voice revenue, largely resulting in decreasing consolidated sales in the last quarter (below our expectations). Line losses have been accelerated with deactivations among business customers due to weak economic conditions.

EQ has received shareholder approval as well as the required state regulatory authorization for its consolidation with CenturyTel under an $11.6 billion merger deal (expected to close in 2Q 2009). We believe that the local phone business in North America, in particular service offered by regional carriers, has significant challenges ahead as consumers and business customers migrate to alternative solutions including VoIP, wireless and cable offerings.

Lower revenue forecasts for the second quarter of 2009 coupled with sustained access line losses support our thesis. We also believe pricing pressure and the need to invest further in broadband infrastructure may strain balance sheet conditions, considering EQ's limited liquidity and significant debt level.

Latest Posts on the Zacks Analyst Blog:

Another Natural Gas Build

The storage overhang in the U.S. natural gas market shows no sign of easing. With domestic production continuing to outpace recession-hit demand, despite the sharp retrenchment in the rig count, the commodity appears to be on track to exit the summer injection season with an all-time high storage build. Today's bearish report is expected to stall, if not altogether reverse, the emerging strength in natural gas prices over the last few days that pushed it above the $4 mark.

To play this natural gas outlook, we continue to rely primarily on select E&P players such as EnCana (ECA), XTO Energy (XTO) and Chesapeake (CHK) who have the bulk of this year's production hedged at attractive prices and have access to resource-rich assets can be profitably operated in the current low-price environment.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

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

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

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

Follow us on Twitter: http://twitter.com/ZacksInvestment

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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

EQ has received shareholder approval as well as the required state regulatory authorization for its consolidation with CenturyTel under an $11.6 billion merger deal (expected to close in 2Q 2009). We believe that the local phone business in North America, in particular service offered by regional carriers, has significant challenges ahead as consumers and business customers migrate to alternative solutions including VoIP, wireless and cable offerings.

Lower revenue forecasts for the second quarter of 2009 coupled with sustained access line losses support our thesis. We also believe pricing pressure and the need to invest further in broadband infrastructure may strain balance sheet conditions, considering EQ s limited liquidity and significant debt level.Zacks Investment Research

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:

Chunghwa Telecom (CHT), the largest integrated telecom operator in Taiwan, declared first quarter 2009 financial results below our estimates. This was mainly due to an increase in employee bonus payouts and lower revenue as a result of weak economic conditions.

However, Chunghwa commands a significant market share in Taiwan for traditional voice and dial-up services, VoIP, IPTV and broadband. Aggressive rollout of fiber-to-the home and 3G network technologies, in our opinion, places the company ahead of the competition.

Bear of the Day:

Management at Central Garden & Pet Co. (CENT) is addressing a difficult environment of weak retail sales, adverse weather and higher costs, which have affected the company's sales and profitability.

The benefits from the strategy of expanding the operating margin through a positive mix shift towards higher margin products and the optimization of the supply chain has taken hold in the second quarter of fiscal 2009. However, management continuously lowered both sales and earnings guidance throughout fiscal 2008, and sales were $15 million below expectations.

The shares of Central Garden & Pet are rated a Sell. This represents a 12 P/E multiple on trailing 12-month EPS.

Latest Posts on the Zacks Analyst Blog:

Unemployment Duration Stays Up

Long-term unemployment has skyrocketed. There are now 3.95 million Americans who have been out of work for more than half a year, up from 3.68 million in April and just 1.57 million a year ago. The next group down, those who have been out of work between 15 and 26 weeks, is also swelling rapidly -- rising to 3.054 million in May from 2.531 million in April and just 1.238 million a year ago.

If the long-term unemployed are people with mortgages, it is hard for me to see how they will continue to pay them. This means there is still more pain in the pipeline for firms closely tied to the mortgage industry like Fannie Mae (FNM), Freddie Mac (FRE) and the mortgage insurers like MGIC (MTG). In the past, they might have been able to refinance their houses and tap the equity to have the cash to continue to pay the monthly mortgage bill (not a great long-term strategy, but it could tide you over). That option is now closed off as most people have very little equity left in their houses.

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About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

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

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks InvestmentResearch is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

However, Chunghwa commands a significant market share in Taiwan for traditional voice and dial-up services, VoIP, IPTV and broadband. Aggressive rollout of fiber-to-the home and 3G network technologies, in our opinion, places the company ahead of the competition. <p. In synergy with its strong balance sheet, management has decided to expand outside Taiwan and may also consider deploying 4G LTE or WiMAX mobile technologies. We reiterate our Buy rating with the same valuation target of $22 per share.Zacks Investment Research

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Here are highlights from Monday's Analyst Blog:

Chunghwa Outpaces Competition

Chunghwa Telecom (CHT) is the largest integrated telecom operator in Taiwan. Chunghwa commands a significant market share of traditional voice and dial-up services, VoIP, IPTV and broadband in Taiwan.

Aggressive roll-out of fiber-to-the home and 3G network technology, in our opinion, has placed the company ahead of near-term competition in Taiwan. In synergy with its strong balance sheet, management has decided to expand outside Taiwan and may also consider deploying 4G mobile technologies of LTE or WiMAX.

The company also announced arrangements with Apple, Inc. (AAPL), to sell 3G enabled iPhones in the Taiwanese market. We reiterate our Buy rating with the same US $22 valuation target per ADR shares.

Omnicom Beats, Street Notices

Omnicom Group, Inc. (OMC) reported financial results for the first quarter of 2009 ending March 31, 2009. The company posted quarterly earnings of $0.53 per diluted share, down 17.2% from $0.64 recorded in the corresponding year-earlier period. Earnings were $0.03 above expectations, and the stock is up 4% on the news.

Worldwide revenue decreased 14.0% from the prior year to $2.75 billion from $3.12 billion in the comparable prior-year quarter. Organic revenues declined 6.6%, acquisitions added 0.4% growth, and a negative currency impact of 7.8%.

Alexion - Still a 1-Drug Wonder

Late last week, Alexion Pharmaceuticals, Inc. (ALXN) reported first quarter 2009 financial results. Soliris sales were in line with our expectation of $81.3 million -- up 78.1% y-o-y and 5% sequentially.

Due to strong Soliris sales, Alexion has been enjoying profitability since the second quarter last year. In 1Q09, adjusted net income was $14.6 million, with diluted earnings per share (EPS) of $0.16. Excluding share-based expenses, Alexion achieved a net income of $22.5 million or EPS of $0.25 in 1Q09. First quarter net income and EPS were less than our estimate of $17.6 million and $0.19 per share due to higher R&D and SG&A expenses.

Moog Results Reflect Impact

Impacted by the effects of the global economic recession, particularly on its Industrial Systems business, Moog Inc. (MOG.A) reported a down -- albeit still nicely profitable -- fiscal 2009 second quarter with EPS of 55¢ versus 66¢, on sales of $453.3 million as compared to $466.8 million.

Overall Net Sales were down by 3.3%. By segment: Aircraft Controls Sales of $162.0 million and Components Sales of $84.5 million were both up marginally by 0.3%; Space & Defense Controls Sales of $68.3 million were off by 2.5%; Industrial Controls Sales were down significantly by 19.7% to $104.5 million; and Medical Devices Sales of $34.0 million were up a whopping 49.5%, primarily because the recent AITECS and Ethox acquisitions contributed $6.7 million to Sales this year and nothing last year.

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About Zacks Equity Research

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

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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

Chicago, IL - April 14, 2009 - Zacks Equity Research picks Estee Lauder Companies (EL) as Bull of the Day and Embarq (EQ) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Saks, Inc. (SKS), Nordstrom, Inc. (JWN) and Wal-Mart (WMT).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Estee Lauder Companies (EL) is the pre-eminent global leader in prestige beauty. The company has strong brands, market presence, and growth potential demonstrated by over 60 years of uninterrupted sales growth.

Even though the slowdown in consumer spending in the U.S. is expected to drive a sales decline in fiscal 2009, management has embarked on a four-year strategic plan that will build on the company's core strengths, sharpen execution capabilities and lower the cost base though fiscal 2013.

With the stock trading at the low-end of the historical valuation range, we maintain the Buy rating. Estee Lauder's stock has traded in a P/E range of 15.2 to 33.0 over the last five years, with the market decline in the fourth quarter driving the stock s P/E valuation down to 10.1. The company has excellent long-term growth prospects, in our view. The target price of $40.50 is based on a 30 P/E on our fiscal 2009 (depressed) earnings estimate.

Bear of the Day

We maintain our Sell rating for Embarq (EQ), the fourth largest local telephone service provider in the U.S., as access line loss continues to erode traditional voice revenue, largely resulting in decreasing consolidated sales for full-year 2008. The company has received shareholder approval for its consolidation with CenturyTel under an $11.6 billion merger deal (expected to close in 2Q 2009).

Lower revenue forecasts for the first-half of 2009, acceleration of access line loss, and weakening CTL valuation levels support our thesis. We believe that the local phone business in North America, in particular service offered by regional carriers, has significant challenges ahead as consumers and business customers migrate to alternative solutions including VoIP, wireless and cable offerings.

We also believe pricing pressure and the need to invest further in broadband infrastructure may strain balance sheet conditions. 

Saks & Nordstrom Hit Outlet Malls 

To attract shoppers trading down, high-end retailers Saks, Inc. (SKS) and Nordstrom, Inc. (JWN) are expanding their reach with new stores in outlet mall locations.

Consumers that typically shop in luxury retail stores have experienced unparalleled wealth destruction from asset values deflating in housing and the equity markets. This demographic is increasing savings, paying off debt and looking over their shoulders to see if they are still employed. Even so, those consumers still want to shop at Saks, Nordstrom, or privately-held Neiman Marcus because of the popular brands and exceptional customer service offered in those stores. They just want to pay less.

This is where outlet malls fit in to a luxury retailer's strategy. Previously, outlet malls were used to move overstocked merchandise, odd sizes, or clearance items without hurting the brand or pricing in full-line stores. Today, outlet mall stores also sell merchandise that is exclusive to their stores. That merchandise is designed and manufactured to look similar to merchandise found in full-line, but it is sold at lower-price points.

Selling lower cost, exclusive merchandise should sound familiar. Discount retailers such as Wal-Mart (WMT) have been implementing this strategy for years. Saks and Nordstrom are simply copying a successful retail strategy with the benefit of having a stronger brand image than what is found at discount stores.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

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

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks InvestmentResearch is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

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

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

Lower revenue forecasts for the first-half of 2009, acceleration of access line loss, and weakening CTL valuation levels support our thesis. We believe that the local phone business in North America, in particular service offered by regional carriers, has significant challenges ahead as consumers and business customers migrate to alternative solutions including VoIP, wireless and cable offerings.

We also believe pricing pressure and the need to invest further in broadband infrastructure may strain balance sheet conditions. Zacks Investment Research

Telmex continues to experience endless price erosion. Fourth quarter 2008 results were weak and the current economic situation is not encouraging at all.

The global credit crunch and the recession in the U.S. are a source of great concern, since Mexico and the U.S. have strong economic ties. Lastly, Telmex's valuation seems excessive if compared to other Latin American operators.
"TMX" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Being a small player in a competitive industry, Internap has a relatively low revenue growth rate. Although the company has been gaining traction in its data colocation services, it is witnessing softness in its content delivery network business. Much of this has been caused by the weakening economy, which has forced INAP to trim its 2008 guidance twice.

Though the company has been making important upgrades to its CDN product, there has been a lackluster performance in the segment in the last few quarters. As such, we are initiating our coverage on INAP with a Sell rating and a price target of $2.50.

Read the full analyst report on INAP

Although some recent data points indicate that spending on network equipment may be slowing, FNSR has reported strong results and given good guidance. As such, we maintain our Hold rating with our $1.50 target price.

On September 8, Finisar announced financial results for fiscal 2009 first quarter. Revenue for the quarter was $128.7 million, exceeding the company's guidance of $120 million to $125 million. This represents a 21.7% increase in revenue from the $128.7 million reported in the year-ago quarter and a 6.4% increase over the $121.0 million reported in the previous quarter.

The company has been targeting the telecommunications industry and has been deeply involved in re-tooling its legacy infrastructure. As per IDC, the worldwide market for telecommunications infrastructure equipment will exceed $109.9 billion in 2011, increasing at a five-year compound annual growth rate (CAGR) of 4.2%.

Optical networking will reach $13.7 billion and the access market $8.5 billion by 2011, driven by demand for broadband, VoIP and triple-play services. According to Gartner Group, the total amount of shared network storage is expected to grow at a rate of almost 70% per year during 2005-2009.

Anita Mohota contributed to the report.

Read the full analyst report on FNSR