Stock Market News & Stocks to Watch from StraightStocks » Wyoming

Mortgage Delinquencies Still Rising – Analyst Blog

Dirk Van Dijk — Tue, 17 Nov 2009 20:20:13 +0000

This morning Trans Union, the big credit bureau, released its quarterly report on mortgage delinquencies, and it was not pretty. Nationwide, 6.25% of all residential mortgages were at least 60 days past due in the third quarter, up from 5.81% in the second quarter and 3.96% a year ago. This was the 11th straight quarter that delinquencies increased.

Mortgage delinquencies are the first step in a house eventually going into foreclosure, so look for those to start heading up again. Foreclosures have been held down by trial modifications under the HEMP program, but very few of those have gotten to the stage of being final modifications. And even when mortgages are modified, there is a strong tendency for those people to again find themselves in financial trouble. Clearly people not paying on their mortgages is not good news for the big banks like Bank of America (BAC) and Wells Fargo (WFC) that lent them the money.

If there is a silver lining in the data, it is that the rate of increase seems to be slowing. The third quarter increase was "only" 7.6%, which is down from an 11.3% increase in the second quarter and a 14.0% increase in the first quarter. Of course, as the base increases, each additional percentage of increase means a bigger absolute number of delinquent mortgages.

There are huge regional disparities in the rate of mortgage delinquencies. The former bubble states continue to suffer mind-bogglingly high rates of delinquencies -- 14.5% of all mortgages in Nevada and 13.3% of all homeowners in Florida are at least two months behind on their mortgages. That is almost one in seven in Nevada and about two in every fifteen in Florida.

In contrast, states where very few people live are experiencing very low rates of delinquencies. North Dakota is holding up best, as it is on a number of economic indicators with a rate of only 1.7%. South Dakota is not faring all that much worse at 2.3% and in Vermont the rate is only 2.6%.

However, the gap is starting to close, and not in a good way. The fastest growth in delinquencies is now coming from areas where there was no real housing bubble. The biggest jump came in Wyoming where delinquencies jumped by 17.9% in the quarter, followed by Kansas at 17.4% and North Dakota at 16.0%. Still, it would take a long time for North Dakota to catch up to Nevada.

There are two key forces that are leading to people not paying their mortgages. One goes to a lack of desire to do so, and the other goes to lack of ability to do so. If your house is substantially underwater, i.e. your mortgage is for a lot more than the house is worth, it is not economically rational to continue to pay your mortgage. After all, most mortgages are non-recourse, which means that the worst thing that happens is that the house gets foreclosed on and you go rent.

At one point, there was a huge social stigma to being foreclosed upon, but as it becomes more common, the stigma diminishes. There are, of course, some non-economic costs associated with not paying and just living rent- or mortgage-payment-free for awhile, and in many areas of the country that can now be well over a year. Your kids might be upset with you since they would have to change schools and leave all their friends if you can’t rent in the same school district. People also develop emotional attachments to their houses. Those factors might be worth a $5,000 or $10,000. However, if the house is underwater by $100,000, most people will just tell little Billy that he will make new friends at his new school.

The second reason for rising delinquencies is unemployment. Quite simply, with no paycheck, it is harder to write the mortgage check. It is not a coincidence that states like Nevada, Florida and California, which have very high delinquency rates, also rank near the top in terms of unemployment -- and the Dakotas and Vermont have unemployment rates that are well below the national average. For the delinquency rate to start to fall significantly, we will need to see progress on both the employment front and on the housing price front.

The government has been doing everything in its power to re-inflate the value of houses. It is throwing money at homebuyers in the form of tax credits. Under the recent extension, you don’t even have to be a first-time home buyer to benefit from Uncle Sam’s generosity. Of course, giving money away to move up buyers does not even reduce the inventory of unsold homes, since for each one bought, another one goes on the market.

The Fed has been artificially depressing mortgage rates by buying up $1.25 trillion of mortgage-backed securities. In the absence of that program, rates on a 30-year fixed rate mortgage would probably be at least a full percentage point higher. The Federal government has also assumed the role of subprime mortgage lender through the FHA, which is offering mortgage loans with only 3.5% down, and the tax credit can be used for the down payment. That is exactly the same sort of behavior that got New Century Financial and Washington Mutual into trouble. It just goes to prove the power of a good lobby over economic rationality.

This gift to the realtors of the country is eventually going to come back and bite the country on the behind, resulting in a massive -- think Fannie Mae (FNM)- and Freddie Mac (FRE)-sized bailout -- of the FHA.

The massive actions have had some effect, and the Case Schiller index has shown some improvement in housing prices over the last few months. Also, housing prices are much closer to normal, relative to incomes and rents, than they were a few years ago at the peak of the bubble.

Notice that I said "closer to normal," not "below normal." In the absence of this extraordinary government support, there is still room for housing prices to fall without them becoming undervalued based on historical relationships. The fact that incomes are not growing much due to high unemployment, and rents are falling due to record high vacancy rates, does not help the situation.

This poses a bit of a dilemma, since new housing starts typically lead changes in unemployment. This can be seen in the first graph below (from http://www.calculatedriskblog.com/). In the graph, the unemployment rate is inverted to better show the relationship between it and the rate of housing starts, as well as the lag involved. The dot.com crash-induced recession of 2001 is the one case where the relationship does not seem to hold.

The good news is that it looks like we have seen the bottom for housing starts this cycle back in January. Based on the historical relationship, that means we might start to see some improvement in the unemployment rate by this coming spring.

The bad news, though, is that new housing right now is a classic case of mal-investment. With lots of vacant housing, the last thing we need as a country is more housing units. The second graph below (also from http://www.calculatedriskblog.com/) shows that the dramatic decline in housing starts has not yet begun to make a dent in the number of houses and apartments that are sitting vacant. Thus it seems unlikely that we will see housing starts return to anything like the 1.1 million a year that has historically been about normal for the country.

More likely the rebound will stall out around the levels that marked the bottom for new housing starts in past cycles of around 600,000 a year. Yes, that is a nice percentage gain from the lows of under a 400,000 rate, but it does not suggest a robust recovery.

Read the full analyst report on "BAC"
Read the full analyst report on "WFC"
Read the full analyst report on "FNM"
Read the full analyst report on "FRE"
Zacks Investment Research

11-12-09 Audio Interview with Green Energy Live Inc. (OTCBB: GELV)

Stuart T. Smith — Thu, 12 Nov 2009 21:07:01 +0000

Karen Clark, CEO of Green Energy, (OTCBB: GELV) visited with SmallCapVoice.com to discuss how her Company, Green Energy Live, is a fully reporting, publicly-listed engineering and technology company headquartered in Wyoming, Michigan (adjacent to Grand Rapids). The company is focused on developing and commercializing renewable energy gasification systems that convert biomass wastes, currently being dumped [...]

Qualsec Wholly-Owned Subsidiary Quickly Expands Distribution and Sales

Stuart T. Smith — Thu, 12 Nov 2009 15:22:00 +0000

Name Change to VitaminSpice Imminent WAYNE, Pa., Nov. 11 /PRNewswire-FirstCall/ — Qualsec’s (OTC Bulletin Board: QLSZ) (German WKN: A0YCND) wholly-owned subsidiary, VitaminSpice, has recently entered into several distribution agreements expanding distribution into parts of the east and west coasts. The VitaminSpice product line will be sold over several internet portals as well as in store shelves. The [...]

American Oil Gas Inc. (AEZ) Sees Solid Opportunity

QualityStocks — Thu, 05 Nov 2009 16:35:43 +0000

Many investors often look to the larger oil and gas developers for a safe investment, and in a certain sense these types of companies are perhaps one of your more safe investments. Energy after all is always a need. There are, however, companies on the verge that may make better investments as they move forward [...]

DrStockPick.com Stock Report! 10/23/09, FPNIX, PWRM, URZ, LPNT, AVT, BEAV

Dr. Stock Pick — Fri, 23 Oct 2009 15:55:05 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday October 23, 2009 DrStockPick.com Stock Report! ************************************************************** Power3 Medical Products, Inc. (OTCBB: PWRM), a leader in neurodegenerative disease and cancer biomarkers and diagnostic tests, announces further international recognition of validity as the company’s President and CSO, Dr. Ira Goldknopf, will deliver an [...]

Duke Energy Going Green – Analyst Blog

Zacks Market Commentaries — Thu, 15 Oct 2009 17:15:58 +0000

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 by World Wind Energy Association although wind power produced only about 1.5% of the world's electricity in 2008, its usage doubled between the period 2005 and 2008.

Based in Charlotte , North Carolina , Duke Energy is a diversified energy company. The company is the third largest electric power holding company in the U.S. , based on kilowatt-hour sales. It supplies electricity to approximately 4 million U.S. customers. It has approximately 36,000MW of electricity generating capacity in the Midwest and the Carolinas . We have a Neutral recommendation on the shares of Duke Energy.
Read the full analyst report on "DUK"
Zacks Investment Research

Zacks Analyst Blog Highlights: Hanger Orthopedic Group, Inc., Orthofix International NV, Conmed Corporation, Exactech Inc. and Owens & Minor Inc. – Press Releases

Zacks Market Commentaries — Mon, 12 Oct 2009 12:40:04 +0000

For Immediate Release

Chicago, IL – October 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: Hanger Orthopedic Group, Inc. (HGR), Orthofix International NV (OFIX), Conmed Corporation (CNMD), Exactech Inc. (EXAC) and Owens & Minor Inc. (OMI).

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Here are highlights from Friday’s Analyst Blog:

Hanger on Acquisition Spree

Hanger will fund these acquisitions from internally generated cash flows. It is estimated that the acquisitions will be accretive to Hanger’s earnings once the integration process is over.

The acquisitions strengthen Hanger’s leadership position in the orthotic and prosthetic (O&P) market and bolster its top-line. Hanger Orthopedic Group, based in Bethesda, MD, provides orthotic and prosthetic patient care services through its 671 patient care centers in the U.S. The company operates through four business units: patient care, distribution, Linkia and Innovative Neurotronics.

Patient care consists of orthotic and prosthetic practice centers throughout the nation. Distribution comprises distribution centers dealing with the supply chain of orthotic and prosthetic components to Hanger and third party patient care centers. Linkia is the first and the only network management provider for the orthotics and prosthetics industry. Innovative Neurotronics provides emerging neuromuscular technologies developed through independent research in a collaborative effort with industry suppliers worldwide.

As the market leader, Hanger has economies of scale unmatched by other competitors. To further drive awareness and market share in a 1-2% volume growth market, the company’s field force provides extensive education to physicians. To build relationships, the company is attempting to become a one-stop shop by offering a comprehensive total care package to patients that physicians can rely upon.

Hanger competes with Orthofix International NV (OFIX), Conmed Corporation (CNMD), Exactech Inc. (EXAC) and Owens & Minor Inc. (OMI) in the orthotic and prosthetic space.

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Duke’s Coastal Wind Pilot Project – Analyst Blog

Zacks Market Commentaries — Fri, 09 Oct 2009 21:55:11 +0000

Duke Energy Corporation (DUK) recently signed a contract with the University of North Carolina (UNC) at Chapel Hill to place up to three demonstration wind turbines in Pamlico Sound (North Carolina). Duke will pay for the turbines and their installation. The turbines will harness the power of ocean breezes along North Carolina's coast.

Duke Energy’s pilot project is based on a nine-month study completed in June 2009 by the UNC for the North Carolina General Assembly. The pilot turbine installation will facilitate utility-scale wind energy development by enabling studies to optimize measuring and predicting the wind resource, quantifying ecological impacts and demonstrating turbine performance in tropical storm conditions.

Duke Energy 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. The company 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. According to a report by World Wind Energy Association although wind power produced only about 1.5% of the world's electricity in 2008, its usage doubled between the period 2005 and 2008.

Based in Charlotte, North Carolina , Duke Energy is a diversified energy company. It supplies electricity to approximately 4 million U.S. customers. It has approximately 36,000MW of electricity generating capacity in the Midwest and the Carolinas. We have a Neutral recommendation on the shares of Duke Energy.
Read the full analyst report on "DUK"
Zacks Investment Research

Hanger on Acquisition Spree – Analyst Blog

Zacks Market Commentaries — Fri, 09 Oct 2009 21:45:22 +0000

Hanger Orthopedic Group, Inc. (HGR) recently made three acquisitions totaling $10.7 million in annual net revenues. These acquisitions are: Creative Orthotics & Prosthetics, Inc.; Custom Orthopedics of Wyoming; and certain orthotics and prosthetics assets from the Hospital of the University of Pennsylvania. These acquisitions will enable Hanger to add patient care centers to its existing markets in New York, Wyoming and Pennsylvania.

Hanger will fund these acquisitions from internally generated cash flows. It is estimated that the acquisitions will be accretive to Hanger’s earnings once the integration process is over.

The acquisitions strengthen Hanger’s leadership position in the orthotic and prosthetic (O&P) market and bolster its top-line. Hanger Orthopedic Group, based in Bethesda, MD, provides orthotic and prosthetic patient care services through its 671 patient care centers in the U.S. The company operates through four business units: patient care, distribution, Linkia and Innovative Neurotronics.

Patient care consists of orthotic and prosthetic practice centers throughout the nation. Distribution comprises distribution centers dealing with the supply chain of orthotic and prosthetic components to Hanger and third party patient care centers. Linkia is the first and the only network management provider for the orthotics and prosthetics industry. Innovative Neurotronics provides emerging neuromuscular technologies developed through independent research in a collaborative effort with industry suppliers worldwide.

As the market leader, Hanger has economies of scale unmatched by other competitors. To further drive awareness and market share in a 1-2% volume growth market, the company’s field force provides extensive education to physicians. To build relationships, the company is attempting to become a one-stop shop by offering a comprehensive total care package to patients that physicians can rely upon.

Hanger competes with Orthofix International NV (OFIX), Conmed Corporation (CNMD), Exactech Inc. (EXAC) and Owens & Minor Inc. (OMI) in the orthotic and prosthetic space.
Read the full analyst report on "HGR"
Read the full analyst report on "OFIX"
Read the full analyst report on "CNMD"
Read the full analyst report on "EXAC"
Read the full analyst report on "OMI"
Zacks Investment Research

Titan Machinery, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Mon, 28 Sep 2009 05:00:00 +0000

Titan Machinery Inc. (TITN) reported fiscal second results on Sep 9 that surprised on the Zacks Consensus Estimate by 50%. The agriculture equipment retailer also confirmed its prior fiscal 2010 earnings guidance.

Earnings per share rose to 27 cents from 19 cents a year ago. The Zacks Consensus Estimate called for 18 cents per share.

Revenues jumped 43.2% to $193.2 million from $134.9 million in the year ago period. All three of the company's segments saw growth in the quarter. Equipment sales jumped 44.3% to $141.1 million from $97.8 million last year. Parts sales climbed 37.7% and service revenues grew 44.4% to $15.6 million from $10.8 million in the second quarter of last year.

For the first six months of the year, revenues grew 25% compared to fiscal 2009.

The agriculture equipment business remained strong as the company's customers continued to have access to credit and were investing in equipment. They continue to purchase large tractors and combines. The construction equipment side of the business continued to be soft and was a reflection of the recession and a slowdown in the construction industry.

Titan added 2 agriculture equipment dealerships during the quarter. It also had $86 million in cash and cash equivalents as of July 31 and only $39.6 million in long-term debt.

Titan now operates a network of 68 agriculture and construction dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, and Wyoming.

Reaffirmed Guidance

Titan still likes what it sees for the rest of fiscal 2010. It reaffirmed revenue and EPS guidance for the year. Revenue is expected in the range of $750 to $790 million. Earnings per share are projected between 92 cents and $1.04 per share.

Covering analysts moved to adjust their estimates based on the recent results. The third quarter Zacks Consensus Estimate fell 4 cents to 32 cents from 36 cents with 3 out of 4 analysts lowering in the last 30 days.

However, the full year Zacks Consensus Estimate jumped 4 cents to 96 with all 4 analysts raising during that time.

Value Fundamentals

Titan Machinery is now a Zacks #2 Rank (buy) stock. It is still an attractive value stock, trading at 12.5x forward earnings. Its price-to-book ratio is now 1.2. The company has a solid 1-year return on equity of 10.27%.

Read the Feb 10, 2008 article.

Update to Previous Value Zacks Rank Buy Stocks

Tech Data Corporation (TECD) beat the Zacks Consensus Estimate for the third straight quarter in August and sees IT spending stabilizing in the Americas in the upcoming quarter. TECD trades at 14.9x forward earnings. Read the full article.

RockTenn Company (RKT) has surprised on the Zacks Consensus Estimate 3 out of the last 4 quarters and has posted record earnings in both the first and third quarters. Can the company do it again when it reports fourth quarter in November? Read the full article.

Bucyrus International (BUCY) surprised on estimates for the second quarter in a row in July. Analysts forecast 10.6% year over year earnings growth in 2009 despite the global recession. BUCY isn't very expensive, trading at just 10.8x forward earnings. Read the full article.

GOL Linhas Aéreas Inteligentes S.A. (GOL) is finding profit in being Brazil's largest low-cost airline. The company has surprised on estimates the last 2 quarters. The stock is cheap, trading at 9.7x forward earnings. Read the full article.

Zacks Investment Research

Duke Expanding Renewable Energy – Analyst Blog

Zacks Market Commentaries — Fri, 25 Sep 2009 20:58:57 +0000

North Carolina-based Duke Energy (DUK) continues to expand its renewable energy portfolio. Earlier this month, the company had declared its plan for building its second-largest renewable energy facility near Casper, Wyoming. The 200 MW Top of the World project, the company's fourth wind farm in Wyoming and ninth in the U.S., will generate enough electricity to power approximately 50-60 thousand households annually.

Duke expects to start the construction work of the project in late 2009 or early 2010, after receiving requisite approvals, and to commence commercial production by end of 2010. The company has signed a 20-year contract with PacifiCorp, which operates as Rocky Mountain Power in Wyoming, for selling the entire output and associated renewable energy credits of the plant.

Year to date, Duke has announced four new wind power projects, with a capacity totaling above 360 MW. Presently, Duke has over 500 MW of wind-powered energy facility under operation, which will exceed 700 MW by the end of this year. Additionally, it has nearly 5,000 MW in pipeline.

Longer-term, Duke will be able to record moderate earnings growth, while offering an attractive dividend yield. However, lower load usage will continue to be a challenge in FY10. Hence, we maintain our Neutral recommendation for the company.
Read the full analyst report on "DUK"
Zacks Investment Research

CEA Urges Senate to Adopt Commonsense Offshore Energy Exploration Provision

Dawn Van Zant — Tue, 22 Sep 2009 13:00:00 +0000

WASHINGTON - As the US Senate considers an appropriations measure setting aside funds for the US Department of the Interior, Sens. David Vitter (La.), Jim DeMint (S.C.) and John Barrasso (Wyo.) are working to include an amendment in the bill that would streamline and advance energy development along our nation's outer continental shelf (OCS).

PRKR, FORC, PWRM, DrStockPick.com Watch List! for Monday September 21, 2009, Parkervision Inc., Force Energy Corp., FORC.OB and Power 3 Medical Products Inc, PWRM.OB

Dr. Stock Pick — Mon, 21 Sep 2009 03:28:50 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ DrStockPick.com Watch List! My Picks for Monday September 21, 2009, are: ************************************************************** PRKR, Parkervision Inc. PRKR designs, develops and sells its proprietary RF technologies which enable advanced wireless communications for current and next generation mobile communications networks. Its solutions for wireless transfer of radio frequency (RF) waveforms enable significant [...]

EnCana Shale Plays Bode Well – Analyst Blog

Zacks Market Commentaries — Thu, 10 Sep 2009 17:40:21 +0000

EnCana Corporation (ECA) has recently said that a significant exposure to the Horn River shale play (in a remote corner of northern British Columbia) should add substantial value to the company in the future. This shale play could hold as much as 500 trillion cubic feet (Tcf) of natural gas.

The Horn River shale play ranks among the largest gas finds in North America as exploration in the region firms up its potential. It is the third largest shale play after Marcellus and Haynesville, having 1,500 Tcf and 717 Tcf of gas, respectively.

With partners such as Apache Corporation (APA), EOG Resources (EOG) and Devon Energy Corporation (DVN), the Horn River shale play has revolutionized North America’s natural gas industry.

EnCana has built considerable land positions in different emerging shale plays, which add significant depth to its strong portfolio of natural gas assets across North America. As of year-end 2008, the company had approximately 260,000 net acres of producing acreage in the Horn River Basin and evaluated 15 wells, 9 of which have been placed on long-term production. Year-to-date, a total of 40 wells have been drilled in this shale play.

EnCana’s resource plays continue to provide excellent performance, driven by its industry-leading positions in plays such as the Deep Bossier formation of East Texas, the emerging Montney formation of Cutbank Ridge in northeast British Columbia and the Jonah formation in Wyoming.

With its industry-leading inventory of long-lived unconventional oil and gas assets and solid production hedging program at attractive price, EnCana remains focused on capital discipline and free cash flows. However, we believe that all these positives are already priced in, leaving little room for upside from current level. As such, we rate the company as Neutral.
Read the full analyst report on "ECA"
Read the full analyst report on "APA"
Read the full analyst report on "EOG"
Read the full analyst report on "DVN"
Zacks Investment Research

GreenHunter Energy Inc. (GRH) Signs Long-Term Biomass Power Deal, Houston Operation Continues to Develop

QualityStocks — Fri, 04 Sep 2009 16:30:17 +0000

Finding footing in a new world of energy consumption is a difficult task. What will sell and work is thought to be understood but can sometimes turn out to be a “dud”. Time is the key. Maybe the right timing has yet to come. In this regard, diversification can help. Maybe this product idea has [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Exceeds Goal for DNA Insertions

QualityStocks — Tue, 01 Sep 2009 19:54:14 +0000

Kraig Biocraft Laboratories Inc. is a biotech company working to develop and commercialize high performance polymers. The company intends to break into the $92 billion market for high performance fibers by using spider silk genes. The company intends to insert these genes into silkworms to make them produce fibers with the characteristics of spider silk, [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Exceeds Goal for DNA Insertions

QualityStocks — Tue, 01 Sep 2009 19:54:14 +0000

Arch Coal Extends Credit Line – Analyst Blog

Zacks Market Commentaries — Mon, 31 Aug 2009 22:20:54 +0000

Arch Coal (ACI) recently extended the size and maturity of its senior secured revolving credit facility. The existing drawing limit under the credit line was raised to $860 million from $800 million through June 2011.

From June 2011, the company will have borrowing right of $763 million through March 2013, which may further be raised up to $800 million. The credit line extension will strengthen Arch Coal’s liquidity position and provide greater financial flexibility to pursue attractive growth opportunities going forward.

Last week, the company obtained clearance from the Federal Trade Commission (FTC) for acquiring the Jacobs Ranch mine in Wyoming from Rio Tinto (RTP). The $761 million deal will give Arch Coal control over around 381 million tons of high-grade, low-cost coal reserves adjacent to its Black Thunder mine and several operating synergies that will provide significant value for it shareholders. Last month, it had raised about $897.5 million vide debt and equity offering to fund the acquisition.

Timely production cuts and rational capex plans will help Arch Coal benefit from the recovery in coal demand once the global economy stabilizes. Shares of the company closed at $17.72 on Monday, trading at 14.0X trailing 12-month EPS versus 19.8X of the peer group. We maintain our Outperform recommendation for the company.

Read the full analyst report on "ACI"
Read the full analyst report on "RTP"
Zacks Investment Research

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Continues To Grow Its Intellectual Property Portfolio

QualityStocks — Mon, 24 Aug 2009 12:48:03 +0000

Kraig Biocraft Laboratories, Inc., the Michigan-based company using genetic engineering to allow silkworms to produce spider silk, is making use of some of the most advanced insect-related genetic engineering techniques known. Scientists have already produced the first transgenic silkworms, and other scientists have discovered the sequence of genes used by spiders to produce silk. The [...]

Bernanke Speaks at Jackson Hole – Analyst Blog

Dirk Van Dijk — Fri, 21 Aug 2009 18:24:41 +0000

In a long speech to the annual Kansas City Fed gathering at Jackson Hole, Wyoming, Fed Chief Ben Bernanke gave a history lesson about the recent financial crisis. It is worth reading in its entirety since it reminds us of just how close we came to absolute catastrophe.

He recounts the demise of Lehman Brothers and the decisions to bail out Fannie Mae ([/url]), Freddie Mac ([url=http://www.zacks.com/stock/quote/fre]FRE) and American International Group (AIG), as well as the shotgun marriages of Bank of America (BAC) with Merrill Lynch and J.P. Morgan (JPM) with Washington Mutual.

The full speech can be read here: http://www.federalreserve.gov/newsevents/speech/bernanke20090821a.htm.

While most of the speech focused on the recent past, he gave the following assessment of the current situation:

“Overall, the policy actions implemented in recent months have helped stabilize a number of key financial markets, both in the United States and abroad. Short-term funding markets are functioning more normally, corporate bond issuance has been strong, and activity in some previously moribund securitization markets has picked up.

"Stock prices have partially recovered, and U.S. mortgage rates have declined markedly since last fall. Critically, fears of financial collapse have receded substantially. After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good.

"Notwithstanding this noteworthy progress, critical challenges remain: Strains persist in many financial markets across the globe, financial institutions face significant additional losses, and many businesses and households continue to experience considerable difficulty gaining access to credit.

"Because of these and other factors, the economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels."

I have to agree with his basic assessment that the economy is stabilizing, but that the recovery will be exceptionally anemic. As a central banker, he is obligated to speak in soft tones and not say anything that has the potential to alarm markets. If he were back teaching at Princeton, he would probably use stronger language.

Historically, sharp downturns are followed by sharp and strong recoveries. That is not likely to happen this time around. Still, we have seen some encouraging signs, most recently the pick-up in existing home sales and the tentative rebound in industrial production.

These signals probably mean that the NBER will eventually say that the recession ended around now. They will not get around to doing so until perhaps the first quarter of next year, just as they did not tell us the recession started in December of 2007 until November of 2008, when any fool could tell we were in a recession.

Bernanke only touched lightly on what was likely going forward and did not really address how the programs of the last year will be unwound -- the timing of which will be extremely difficult. If the Fed acts too quickly, we could easily be back where we were last fall. If it waits too long, inflation expectations will rise, and given the huge amount of excess reserves the Fed has injected into the system, inflation could rapidly get out of control.

Some insight into this timing would have been nice in this speech, but I didn’t find it. Still it was a useful history lesson. Here is his conclusion:

“Since we last met here, the world has been through the most severe financial crisis since the Great Depression. The crisis in turn sparked a deep global recession, from which we are only now beginning to emerge.

"As severe as the economic impact has been, however, the outcome could have been decidedly worse. Unlike in the 1930s, when policy was largely passive and political divisions made international economic and financial cooperation difficult, during the past year monetary, fiscal and financial policies around the world have been aggressive and complementary.

"Without these speedy and forceful actions, last October's panic would likely have continued to intensify, more major financial firms would have failed, and the entire global financial system would have been at serious risk. We cannot know for sure what the economic effects of these events would have been, but what we know about the effects of financial crises suggests that the resulting global downturn could have been extraordinarily deep and protracted.

"Although we have avoided the worst, difficult challenges still lie ahead. We must work together to build on the gains already made to secure a sustained economic recovery, as well as to build a new financial regulatory framework that will reflect the lessons of this crisis and prevent a recurrence of the events of the past two years. I hope and expect that, when we meet here a year from now, we will be able to claim substantial progress toward both those objectives."

The effort the build an new regulatory framework is going to be critical, and is something that the public has to be aware of. Since it is a highly complex and difficult subject, it is just the sort of thing where lobbyists can have the greatest influence.

Already the effort to create a new agency focused on consumer protection from abusive financial products seems to be floundering under intense opposition from the banking lobby. The country did an enormous favor to the banking industry last year, but in the final analysis it was in the public interest to do so (as a general proposition of stepping in, the actual implementation was FAR too nice to the banks).

It would be nice if those efforts led to changes that would prevent a reoccurrence of this disaster. So far, there is little evidence of that happening.

The regulatory overhaul as proposed by the Obama Administration would be a good first step, but needs to be strengthened as it moves through Congress. However, it seems more likely that as the bank lobby sets its teeth in, it will be substantially weakened instead.

Thus, we will face another crisis like the one we had last year, maybe not this year or next, but 10 or 20 years down the line. Let us hope that Bernanke is right and a year from now we will see substantial progress towards these objectives, but I fear that we will not.
Read the full analyst report on "FNM"
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Zacks Investment Research

Prime Mortgages Going Sour – Analyst Blog

Dirk Van Dijk — Thu, 20 Aug 2009 19:53:20 +0000

At the end of the second quarter, 4.3% of all residential mortgages were in some part of the foreclosure process, up from 3.85% at the end of the first quarter and 2.75% a year ago. In addition, on a seasonally adjusted basis, 9.24% of all mortgages were delinquent (behind by at least one payment), up from 9.12% at the end of March, and just 6.41% at the end of June 2008.

Both were records since the Mortgage Bankers Association (MBA) started keeping track back in 1972. On a non-seasonally-adjusted basis, the delinquency rate was not quite as bad at 8.86%, but still a record.

That means that 13.16% of all residential mortgages (NSA basis) are in trouble. With about 51 million houses with mortgages in the country, that means 6.71 million bad mortgages out there. With the number of people out of work still rising, the problem is likely to continue to get worse for quite a while.

The chief economist for the MBA expects that foreclosures will not peak until the end of 2010. I suspect he might be a little bit on the optimistic side, but that projection is reasonable. If someone is also in a house where the value of the house is less than the amount of the mortgage, the probability that they will continue to pay the mortgage falls rapidly.

If they are also out of work while they are underwater, then continuing to pay their mortgage is simply not an economically rational thing to do. Far better to simply live rent- and mortgage-free until the sheriff shows up at the door. Given the overwhelming case-load, that can often be well over a year (though it varies greatly by location).

Once upon a time, people liked to think that the mortgage problems were contained to the subprime market. It was just a problem of irresponsible people on the wrong side of the tracks. That is clearly no longer the case.

While as a percentage, subprime mortgages are still much more likely to be delinquent or in foreclosure than are prime mortgages, there are far fewer subprime mortgages than prime mortgages. In absolute numbers, there are far more bad prime mortgages than bad subprime mortgages.

The graph below (from http://www.calculatedriskblog.com/) shows just how bad the loans are going sour on the people who had good credit when they took out the mortgages.

The percentage of prime loans in foreclosure jumped to 3.00% at the end of the second quarter vs. 2.49% at the end of March. The percentage delinquent rose to 6.41% from 6.06% at the end of March.

On a percentage basis, subprime loans continue to be an absolute horror show. At the end of the quarter more than one in four (25.35%) subprime loans were delinquent (up from 24.95% at the end of the first quarter) and 15.05% were somewhere in the foreclosure process, up from 14.34% the quarter before.

Thus, the combined troubled mortgage rate is now over 40% on subprime loans. This is of course bad news for the banks with big mortgage operations like Bank of America (BAC), Wells Fargo (WFC) and PNC Financial (PNC).

Regionally, California, Florida, Arizona and Nevada are still being hit the hardest, but other states are starting to catch up. Those four states had 44 percent of all of the nation’s new foreclosures during the second quarter of this year, down from 46 percent in the first quarter.

Foreclosures are less of a problem in the relatively unpopulated states. Very few people (relatively) are falling behind in North Dakota, Wyoming or Alaska as shown in the second graph (also from http://www.calculatedriskblog.com/).

Florida still has the worst mortgage performance, closely followed only by Nevada. In Florida, 12 percent of mortgages were somewhere in the process of foreclosure -- the highest in the nation -- and another 5 percent were at least 90 days past due as of the end of June. A total of 22.8 percent were delinquent at least one payment or in the process of foreclosure, which is almost twice the national percentage (excluding Florida).

In contrast, the next highest states are Nevada at 21.3 percent, Arizona at 16.3 percent and Michigan at 15.3 percent. California is still a problem by virtue of its sheer size, but on a percentage basis, and combining both levels of the problem, Mississippi and Indiana are now in marginally worse shape than is California.

Some of the delinquencies will get cured, but far from all of them. The farther the house is underwater, the less likely it is to get cured. Many more houses are going to end up in the hands of the banks, which will then dump them onto the market and further depress prices.

Housing is normally the locomotive that pulls the U.S. economy out of recessions. It is hard to see how that locomotive will work up a good head of steam with so many foreclosures blocking the tracks.

The first-time homebuyer credit has helped to clear out some of the existing bank owned properties, but that program will end just after Thanksgiving. Unless the program is renewed, that source of buying is likely to dry up significantly. This could lead to another sharp down-leg for the housing market.

Shifting my metaphor, the economy’s vital signs have stabilized, but that is due to the powerful drugs that the "doctors" (Bernanke and Obama) have been giving it. Those drugs (printing money, super-low short-term interest rates and massive budget deficits) are known to have very serious long-term side effects -- ones that have been known to be fatal (Weimar style hyperinflation) if given in to big doses and for too long.

The doctors had no choice but to give them to the patent, since doing nothing would have also been fatal (we narrowly avoided a second Great Depression), but it is a huge question if the patient will be able to get up and about after he is taken off the meds.
Read the full analyst report on "BAC"
Read the full analyst report on "WFC"
Read the full analyst report on "PNC"
Zacks Investment Research

Bullion Monarch Mining, Inc. (BULM.OB) Posts Record Profits for Fiscal Year 2009

QualityStocks — Tue, 18 Aug 2009 13:57:37 +0000

Bullion Monarch Mining, Inc. is a domestic natural resource company with interests in gold and oil shale. The company has mining properties in Nevada and elsewhere in the western United States. The company also has an 80% interest in EnShale, an oil shale company with properties in Utah, Wyoming and Colorado. Bullion Monarch Mining continues its [...]

Force Energy Corp. (FORC.OB) Announces Acquisition of 50% Working Interest in the Diamond Springs Prospect

QualityStocks — Thu, 13 Aug 2009 14:05:36 +0000

Force Energy Corp. was pleased to announce this morning that it has acquired a full 50% working interest in the Diamond Springs Prospect. The 3,300-acre shallow oil prospect is located within the Wind River Basin in Fremont County, Wyoming. According to the press release, independent 3rd party geologic work has concluded that the three independent [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) on the Verge of Unlocking New Markets

QualityStocks — Thu, 13 Aug 2009 13:44:35 +0000

Kraig Biocraft Laboratories, Inc. is focused on the development of high performance technical fibers and polymers using spiders and silkworms. While the production of a “super fiber” is the company’s primary focus at this time, it is also considering the production of other unique proteins using transgenic silkworms. It is thought there is a large [...]

BEXP, MSGI, PennyOmega.com Watch List ! for Tuesday August 11, 2009, Brigham Exploration Co. and MSGI Security Solutions Inc, MSGI.OB

PennyOmega.com — Mon, 10 Aug 2009 23:58:04 +0000

BEXP, Brigham Exploration Co. MSGI, MSGI Security Solutions Inc, MSGI.OB PennyOmega.com Watch List! PennyOmega.com Watch List ! for Tuesday August 11, 2009 Our Picks at PennyOmega.com for Tuesday August 11, 2009 are: ************************************************************** BEXP, Brigham Exploration Co. BEXP engages in the exploration, development, and production of oil and natural gas reserves in the Rocky Mountains, Onshore Gulf Coast, Anadarko Basin, and west [...]

Kraig Biocraft Laboratories Inc.’s (KBLB.OB) Unique Corporate Goals

QualityStocks — Thu, 06 Aug 2009 13:33:02 +0000

Kraig Biocraft Laboratories Inc. is a cutting edge biotechnology company that is focused on the development of high performance fibers and polymers by creating transgenic silkworms inserted with spider genes. The goal is that these transgenic silkworms will spin a new “super fiber” similar to natural spider silk. Spider silk is one of the strongest and [...]

Resource Stock Roundup:Monday, July 27, 2009

Doug Casey — Mon, 27 Jul 2009 22:01:52 +0000

pAfter posting nice returns earlier in the week, the Canadian markets took a well deserved rest during Friday trading. For the tale of the tape: the TSX Exchange tacked on 0.11%, while the TSX Gold Index fell 0.60%, and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.50% with the advancers beating out the decliners by a 415 to 373 margin on a modest 137 million shares traded.br / a href="http://www.google.com/finance?q=Silvercorp+Metals" Silvercorp Metals/a has terminated its unsolicited offer to acquire a href="http://www.google.com/finance?q=TSE:KDX"Klondex Mines/a but Paramount Gold and Silver (AMEX:a href="http://www.google.com/finance?q=Paramount+Gold"PZG/a) is offering up 1.45 of its shares for each Klondex share. This would value the transaction at around C$80 million. Silvercorp ended the day down C$0.08 at C$3.85, Klondex closed up C$0.04 at C$1.90 and Paramount#8230;/p

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Assembles Strong Advisory Board

QualityStocks — Mon, 20 Jul 2009 16:04:05 +0000

Kraig Biocraft Laboratories, Inc., the biotech company known for its pioneering work in genetic engineering for the production of spider silk and other polymers, is constantly breaking new ground in the field of genetics. As such, it is not surprising that they have assembled a remarkable team of scientific advisors to play a major role [...]

Will the Feds Use the California Crisis to Change the Rules on Munis?

Contrarian Profits — Fri, 10 Jul 2009 23:30:27 +0000

pIf you live in the United States, there is a good chance the crisis in California is going to affect you. And if you own municipal bonds — either directly or indirectly through other investments — what’s happening in California could have a major impact on your finances.For years, state government budgets have been expanding as the economy grew and the rising housing market swelled property tax coffers. But the severe recession that has brought rising unemployment and a collapse in property values has drastically cut revenues from income, property, sales and corporate taxes./p pAnd state governments are feeling the pinch. According to the National Conference of State Legislators, there are only three states (Arkansas, Wyoming, and North Dakota) that do#8230;/p

Avalon Oil Gas, Inc. (AOGN.OB) Acquiring Oil Production Enhancing Technologies

QualityStocks — Wed, 08 Jul 2009 13:06:55 +0000

Avalon Oil & Gas Inc. is an independent domestic oil and natural gas producer. The company has acquired a portfolio of leases in Texas, Oklahoma, Louisiana and Arkansas. Avalon’s strategy is to use efficient reservoir maintenance and innovative technology to generate stable cash flows for the company. Avalon’s technology subsidiary acquires and develops oil production [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Utilizing Latest Genetic Technology in Search of Super-Fiber

QualityStocks — Mon, 06 Jul 2009 16:40:40 +0000

Kraig Biocraft Laboratories Inc. is a company focused on the development of high performance technical fibers and polymers utilizing spider genes for insertion into silkworms. The idea is to create a transgenic variety of silkworms capable of spinning a new “super fiber” that is similar or an exact copy of natural spider silk, which is [...]

State Budget Gaps Investment Implications

Richard Shaw — Sun, 05 Jul 2009 04:08:27 +0000

State budgets are a shambles. Sales taxes, corporate taxes, personal income taxes and other taxes are being raised all over the country. The budget problems and consequential taxes will impact municipal bond rates and default risk, and after-tax investment returns on many forms of investment. California Muni Money Funds: We have been advising our California clients holding [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Anticipates Success

QualityStocks — Thu, 02 Jul 2009 13:18:54 +0000

Emerging biotech company, Kraig Biocraft Laboratories, Inc. was founded by the inventor of the company’s technology, current chief executive officer, Kim Thompson. The company is a fully reporting organization and trades on the over-the-counter market under the stock symbol KBLB. As of last report, there are about 501 million common shares outstanding, with approximately [...]

State Budgets Are Anti-Stimulus – Analyst Blog

Dirk Van Dijk — Tue, 30 Jun 2009 15:54:00 +0000

Today is the end of the 2009 fiscal year, and many states are still scrambling to get budgets in place for the 2010 fiscal year.

It is not easy since when the economy turns south, so do tax revenues, and states are not allowed to run deficits or borrow for operating needs. Some states have managed to cut costs or raise taxes enough to close their deficits for the upcoming year. The only two states without a budget problem are Montana and North Dakota.

As shown in the table below (from http://www.cbpp.org/cms/index.cfm?fa=view&id=711), the total spending cuts or revenue increase needs to be $166 billion or 24% of the projected budget. To some extent states have used "rainy day funds" and the money from the Federal Stimulus bill to close some of the gap. Still the problem is very severe with 5 states (CA, AZ, NV, IL, NY) facing shortfalls of greater than 30%. California is in the worst shape with a gap of 58.2%.

STATES WITH PROJECTED FY2010 BUDGET GAPS
State	FY2010 pre-budget	FY2010 mid-year gap	FY2010 Total	FY2010 Total % of Budget
Alabama	$1.2 billion	0	$1.2 billion	16.70%
Alaska	$1.3 billion	0	$1.3 billion	30.00%
Arizona	$4.0 billion	0	$4.0 billion	41.10%
Arkansas	$146 million	0	$146 million	3.20%
California*	$34.2 billion	$19.5 billion	$53.7 billion	58.20%
Colorado	$1.0 billion	$384 million	$1.4 billion	18.60%
Connecticut	$4.1 billion	0	$4.1 billion	23.20%
Delaware	$557 million	0	$557 million	17.60%
District of Columbia	$650 million	$150 million	$800 million	12.70%
Florida	$5.9 billion	0	$5.9 billion	22.80%
Georgia	$3.1 billion	$750 million	$3.9 billion	22.30%
Hawaii	$682 million	$297 million	$978 million	19.10%
Idaho	$411 million	0	$411 million	16.40%
Illinois	$9.2 billion	0	$9.2 billion	33.00%
Indiana	$1.1 billion	0	$1.1 billion	7.50%
Iowa	$779 million	0	$779 million	13.20%
Kansas	$1.4 billion	Yes, DK size	$1.4 billion	22.60%
Kentucky	0	$1.1 billion	$1.1 billion	11.30%
Louisiana	$1.8 billion	0	$1.8 billion	21.60%
Maine	$640 million	0	$640 million	21.40%
Maryland	$1.9 billion	Yes, DK size	$1.9 billion	13.60%
Massachusetts	$5.0 billion	0	$5.0 billion	17.90%
Michigan	$2.4 billion	0	$2.4 billion	12.00%
Minnesota	$3.2 billion	0	$3.2 billion	21.00%
Mississippi	$480 million	0	$480 million	9.60%
Missouri	$923 million	0	$923 million	10.30%
Nebraska	$150 million	0	$150 million	4.30%
Nevada	$1.2 billion	0	$1.2 billion	37.80%
New Hampshire	$250 million	0	$250 million	16.20%
New Jersey	$8.8 billion	0	$8.8 billion	29.90%
New Mexico	$345 million	0	$345 million	6.30%
New York	$17.9 billion	0	$17.9 billion	32.30%
North Carolina	$4.6 billion	0	$4.6 billion	21.90%
Ohio	$3.3 billion	0	$3.3 billion	12.30%
Oklahoma	$600 million	0	$600 million	10.50%
Oregon*	0	0	0	0.00%
Pennsylvania	$4.8 billion	0	$4.8 billion	18.00%
Rhode Island	$590 million	0	$590 million	19.20%
South Carolina	$725 million	0	$725 million	12.50%
South Dakota	$32 million	0	$32 million	2.90%
Tennessee	$1.0 billion	0	$1.0 billion	9.70%
Texas	$3.5 billion	0	$3.5 billion	9.50%
Utah	$721 million	$279 million	$1.0 billion	19.80%
Vermont	$278 million	0	$278 million	24.80%
Virginia	$1.8 billion	Yes, DK size	$1.8 billion	10.90%
Washington	$3.4 billion	$195 million	$3.6 billion	23.30%
West Virginia	$200 million	0	$200 million	5.30%
Wisconsin	$3.2 billion	0	$3.2 billion	23.20%
Wyoming	0	$32 million	$32 million	1.70%
Total	$143.2 billion	$22.7 billion	$165.9 billion	24.40%

This will lead to very drastic cuts in state budgets. Access to medical care by the poor will likely be one of the first things to be cut.

Education budgets will also probably be pared. This could be decreased spending on new textbooks, which would not be good news for publishers like McGraw-Hill (MHP) and Scholastic (SCHL).

Another area that is likely to be hit is new equipment at the municipal level. For example, I would not expect Oshkosh (OSK) to have a very good year selling new fire engines and snow removal equipment to municipalities.

Layoffs of state and municipal workers will simply add to the already high and rising unemployment rate. In short, a big part of the federal stimulus spending is being offset by (legally mandated) anti-stimulus actions at the state level.

As the graph shows, state fiscal problems tend to persist well after the recession is officially over. Indeed the problem is usually worse in the second or third year since by then the "rainy day funds" have already been used up.

Following the last recession, states collectively had their worst year in 2004 with a shortfall of $80 billion (or less than half what they face for fiscal 2010), which was well after the recession officially ended. Thus 2011, and possibly even 2012, will be a very lean year at the state level as well.

Read the full analyst report on "MHP"
Read the full analyst report on "SCHL"
Read the full analyst report on "OSK"
Zacks Investment Research

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Looking to Spin New “Super-Fiber”

QualityStocks — Tue, 09 Jun 2009 16:09:53 +0000

Wescorp Energy, Inc. (WSCE.OB) Announces Shipment of First H2Omaxx Water Remediation Unit

QualityStocks — Tue, 26 May 2009 14:15:24 +0000

Wescorp Energy Inc., an oil and gas technology solutions provider, was pleased to announce today that a 2,000 barrel per day H2Omaxx water remediation unit has been shipped to Kansas to begin full operations for an oil and gas producer. H2Omaxx safely, effectively and economically cleans and separates oil and solids from produced water using [...]

Keep Avalon Oil and Gas, Inc. (AOGN.OB) on Radar

QualityStocks — Fri, 22 May 2009 20:01:30 +0000

Avalon Oil & Gas, Inc. is an independent domestic oil and natural gas producer focused on leveraging efficient reservoir maintenance and innovative technologies to generate stable cash flows and production. By acquiring a portfolio of oil and gas leases to generate asset growth, the company aims to deliver a sustainable rate of return for their [...]

Kraig Biocraft Laboratories, Inc.’s (KBLB.OB) Focus on High Performance Fibers and Polymers

QualityStocks — Fri, 22 May 2009 17:34:15 +0000

Kraig Biocraft Laboratories Inc. is a company focused on the development of high performance technical fibers and polymers utilizing spider genes which are inserted into silkworms. The company aims to create a transgenic variety of silkworms capable of spinning a new “super fiber” that is similar to natural spider silk, one of the strongest and [...]

Zacks Analyst Blog Highlights: Intel Corp., Applied Materials, Entergy Corp., Alpha Natural Resources, Inc. and Foundation Coal Holdings, Inc. – Press Releases

Zacks Market Commentaries — Thu, 14 May 2009 12:22:46 +0000

For Immediate Release

Chicago, IL - May 14, 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: Intel Corp. (INTC), Applied Materials (AMAT), Entergy Corp. (ETR), Alpha Natural Resources, Inc. (ANR) and Foundation Coal Holdings, Inc. (FCL).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Wednesday's Analyst Blog:

Big Day for Semiconductors

Intel Corp. (INTC) has been fined 1.06 billion Euros by the European Commission (EC) for anti-competitive business practices. We have blogged about the suit in the past, and short of the amount (which is historic), it is not a surprise.

The suit alleges Intel gave discounts in exchange for preferential treatment for the manufacturers that used its chips. While the amount of the fine is historic, it will not dent the cash balance of INTC. We would be more concerned about how it affects Intel's market share over the coming quarters.

Applied Materials (AMAT) also released results last night with the top-line beating expectations and the bottom-line meeting them. Guidance was cautious, which was expected.

Entergy Results Disappoint

Entergy Corp. (ETR) released financial results for the 1st quarter of 2009 in which the company reported a 23.8% decrease in earnings of $235.3 million, or $1.20 per diluted share ($1.22 basic), compared to $308.7 million, or $1.56 per diluted share ($1.60 basic), in the year-ago quarter.

Ongoing operating earnings were reported at $252.6 million, or $1.29 per share, compared with $308.7 million, or $1.56 per share, in the comparable prior-year quarter.

Alpha Buying Foundation Coal

Today, Alpha Natural Resources, Inc. (ANR) announced that it would purchase, in an all stock deal, Foundation Coal Holdings, Inc. (FCL) whereby FCL shareholders would receive 1.084 shares of ANR for every share of FCL. Based off of its 5-day moving average of $32.73 per share, this represents a 37% premium over FCL's 5-day moving average.

Alpha will also assume the +$500 MM of Foundation's net debt. The merged company will trade and operate under the Alpha name. The merger effectively gives the new company diversification -- the old ANR was exclusively focused in Central and Northern Appalachia (W. Virginia, Virginia, Kentucky, Pennsylvania), while the majority of Foundation Coal reserves and production come from the Powder River Basin (Wyoming). The reserve diversity will help the new ANR because the old ANR brings a higher margin product -- metallurgical coal -- whereas Foundation Coal produces almost all steam coal, which is used in the electric generation process, and does not experience as much market volatility as metallurgical coal.

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Zacks Investment Research

Alpha Buying Foundation Coal – Analyst Blog

Zacks Market Commentaries — Wed, 13 May 2009 19:09:35 +0000

Today, Alpha Natural Resources, Inc. (ANR) announced that it would purchase, in an all stock deal, Foundation Coal Holdings, Inc. (FCL) whereby FCL shareholders would receive 1.084 shares of ANR for every share of FCL. Based off of its 5-day moving average of $32.73 per share, this represents a 37% premium over FCL's 5-day moving average.

Alpha will also assume the +$500 MM of Foundation's net debt. The merged company will trade and operate under the Alpha name. The merger effectively gives the new company diversification -- the old ANR was exclusively focused in Central and Northern Appalachia (W. Virginia, Virginia, Kentucky, Pennsylvania), while the majority of Foundation Coal reserves and production come from the Powder River Basin (Wyoming). The reserve diversity will help the new ANR because the old ANR brings a higher margin product -- metallurgical coal -- whereas Foundation Coal produces almost all steam coal, which is used in the electric generation process, and does not experience as much market volatility as metallurgical coal.

Because Central Appalachia faces ongoing operational and environmental issues, acquiring a foothold in a major western U.S. coal basin will reduce the merged company's risk profile. Alpha will use its large cash position to repay the term loan portion of its secured credit facility, and the $500 MM of FCL net debt will remain outstanding.

Current market conditions favor acquisitions. Valuations are still depressed, and many coal companies have substantial amounts of liquidity. The weak economic environment has created high coal stockpiles and customer deferrals. Many producers have idled or shut down operations.

In an effort to survive and bolster margins with economies of scale, companies will likely join up or be acquired by bigger, better capitalized names. One issue brought into the spotlight with this deal is the future of Central Appalachian production (CAPP). With increased scrutiny on mountain removal mining and the issuance of 404 permits, the long-term viability of CAPP is uncertain to some extent. With tough regulatory jurisprudence, mining in Central Appalachia would be more costly, and new mines would take longer to come online, if at all.

While this impact wouldn't be felt in the next year or two, this could have a long-term dampening effect on production out of this region. The move to purchase FCL exemplifies how reserve diversity is crucial to a coal producer as a going concern. Zacks Investment Research

Keep Uranium Energy Corp. (UEC) on Radar!

QualityStocks — Tue, 12 May 2009 13:28:58 +0000

Uranium Energy Corp. is a US-based junior resource uranium mining company focused on becoming a near-term ISR uranium producer in the United States. The company controls one of the largest historical uranium mining exploration and development databases in the US, which it has used to acquire advanced uranium properties throughout the southwestern US. Uranium Energy has focused [...]

Income Taxes: Legally Avoid the Taxman With Municipal Bonds

Investment U — Fri, 01 May 2009 13:29:40 +0000

Income Taxes: Legally Avoid the Taxman With Municipal Bonds by David Fessler, Advisory Panelist Paying income taxes, for the most part, is a foregone conclusion. You can lower them, avoid them, and even delay paying them. But eventually you must write the government a check, in an amount determined by the I.R.S. Tax Code. But a number of [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Taps Universities to Maximize Success

QualityStocks — Wed, 29 Apr 2009 14:47:00 +0000

Kraig Biocraft Laboratories, Inc., a biotechnology development company focused on genetically engineered high performance polymers and technical fibers, has managed to significantly leverage its efforts and success through cooperative work with select university laboratories. It’s a creative arrangement, under the Kraig Research Initiative, that allows Kraig to bring technologies from diverse research institutions and combine [...]

If You Like Earning Steady Income, There’s No Better Business Than This

Tom Dyson — Thu, 09 Apr 2009 13:00:00 +0000

BBy Tom Dyson/BBRBR "We've had a good turnout with them," said Sue Moore. "It upped our occupancy."BRBR Sue Moore runs a Super 8 Motel in Bowling Green, Missouri. The recession has been hard on some areas of the Midwest, but in Bowling Green, things have held up well. A nearby construction project is the reason. Nearly 1,000 workers have been holed up in Bowling Green... filling up the motels, booking up the restaurants, and keeping the waitresses busy at the local diners.BRBR The contractors are working on a project to lay a pipeline across America. The pipeline is 42 inches in diameter and – when finished – will run 2,053 miles from Colorado to New Jersey. This month, the workers will complete the Midwest section of the pipeline and move away from Bowling Green.BRBR They call this pipeline "Rex" for Rockies Express. It will be the largest natural gas pipeline in America... And at a cost of over $6 billion, it is one of the most expensive natural gas infrastructure projects ever undertaken.BRBR The western section of the pipeline is already operating. Now the Ohio section is complete, gas will start running across the Midwest, too. Construction on the final leg of the project – the piece from Ohio to New Jersey – will begin soon.BRBR The Rockies Express will carry between 11.5 billion and 2 billion cubic feet of gas per day. According to the owners, there was so much demand for this pipeline, it will run at full capacity, immediately.BRBR Pipeline construction is a major headache, but once you've completed the project, there's no better business... especially if you like earning a steady income stream. Here's why:BRBR There's almost no cost to run Rex. It needs almost no maintenance or labor. And it'll do its job for the next 100 years. Rex doesn't care about recessions or wars. Buried underground, your investment is completely safe.BRBR And Rex will always be full, so it'll keep cranking out cash flow. There's a massive surplus of gas in Wyoming and Colorado. There's a shortage of gas in the cities of the Northeast and the Midwest. There's no competition. Rex is fully subscribed under long-term contracts... even though it's still under construction.BRBR The government will set the tariffs for transporting gas in the Rex pipeline. This is a good thing. The government sets the tariffs high to make businesses undertake these costly construction projects. Price stability is another benefit of the government's regulation. Cash flows from Rex will be so steady, they'll resemble bond coupons.BRBR In sum, Rex is a perfect investment for the investor who wants to earn 10% a year on his money without taking big risks. Unfortunately, you can't invest directly in Rex... it's owned by a syndicate of the biggest energy companies in the U.S. But it is easy to invest in pipelines with similar investment characteristics to Rex.BRBR The bear market trimmed most pipeline stock prices by over 50%. The Alerian MLP index is an index of the 50 largest pipeline companies. The index yields 10.5% right now, but it's easy to find individual pipeline companies with yields as high as 15%. Click here for a list of the pipeline companies in the index.BRBR Good investing,BRBR TomBRBRdiv class="feedflare" a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:yIl2AUoC8zA"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?d=yIl2AUoC8zA" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:7Q72WNTAKBA"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?d=7Q72WNTAKBA" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:V_sGLiPBpWU"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?i=KOnb48GvOnA:N2_XLewgi88:V_sGLiPBpWU" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:gIN9vFwOqvQ"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?i=KOnb48GvOnA:N2_XLewgi88:gIN9vFwOqvQ" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:TzevzKxY174"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?d=TzevzKxY174" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:69LSlcDtVW8"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?d=69LSlcDtVW8" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/dailywealth/rss?a=KOnb48GvOnA:N2_XLewgi88:qj6IDK7rITs"img src="http://feeds2.feedburner.com/~ff/dailywealth/rss?d=qj6IDK7rITs" border="0"/img/a /divimg src="http://feeds2.feedburner.com/~r/dailywealth/rss/~4/KOnb48GvOnA" height="1" width="1"/

Warren Resources Value Attractive – Analyst Blog

Zacks Market Commentaries — Mon, 06 Apr 2009 21:13:00 +0000

Warren Resources Inc. (WRES) is an independent energy company engaged in two major developments: the Atlantic Rim CBM play in Wyoming's East Washakie Basin, and secondary oil recovery operations in the Wilmington field in the Los Angeles Basin. This oilfield represents the third largest field in the U.S., and around 90% of the company's proved reserves are located in the Wilmington field.

The current commodity-price and credit market downturn has hit Warren hard. Its high-cost oily Wilmington play has become uneconomical, resulting in a more than 60% drop in proved reserves. And its natural gas asset in Wyoming is exposed to depressed Rockies prices. In response, the company has cut its cap-ex budget to the bone, which it should meet through internal cash flows.

Despite clear near-term challenges, we continue to believe that the stock offers a compelling long-term value given its favorable set of growth opportunities via its natural gas-focused Atlantic Rim and oil-focused Wilmington assets.
Read the full analyst report on "WRES"
Zacks Investment Research

First Solar to Develop 30 Megawatt AC Solar Power Plant for Tri-State

Dawn Van Zant — Tue, 24 Mar 2009 13:00:00 +0000

TEMPE, Ariz.---First Solar, Inc., (Nasdaq: FSLR) has entered into a 25-year power purchase agreement with Tri-State Generation and Transmission Association, Inc., a wholesale electric power supplier serving more than 1.4 million consumers through 44 electric cooperatives and public power districts in Colorado, Nebraska, New Mexico and Wyoming.

The Geography of the Recession – Analyst Blog

Dirk Van Dijk — Thu, 12 Mar 2009 21:45:49 +0000

Highlights include Nordstrom, Inc. (JWN), Cost Plus, Inc. (CPWM) and BRE Properties (BRE).

What do Iowa, Nebraska, North Dakota, South Dakota, Utah and Wyoming have in common? Low population densities and agricultural-based economies to be sure -- but what else?

How about California, Indiana, Michigan, Nevada, North Carolina, Oregon, Rhode Island and South Carolina? Not much at first blush.

The answers are, the first group has unemployment rates under 5%, while the second group has unemployment rates above 9%. The graph below (larger version available at http://www.calculatedriskblog.com/) shows that the unemployment rate is higher now than a year ago for every state in the Union. However, there are very real regional differences in the impact so far. Perhaps noteworthy by their absence from the list of the worst unemployment rates are two of the "rust belt" states, Ohio and Pennsylvania.

I'm not sure there are any publicly traded stocks that have consumer demand in the Dakotas as being a significant driver for their sales. However, this does give you a point of reference of places to avoid. For example, Retailers with a heavy exposure to California such as Nordstrom (JWN) and Cost Plus (CPWM) would seem particularly vulnerable. The same is true of Real Estate Companies with heavy exposure to California like BRE Properties, Inc. (BRE).

Read the full analyst report on "JWN"
Read the full analyst report on "CPWN"
Read the full analyst report on "BRE"
Zacks Investment Research

KL Energy Corp. (KLEG.OB) Receives Multi-Million Dollar Capital Infusion despite Tough Economy

QualityStocks — Mon, 09 Mar 2009 12:36:22 +0000

KL Energy Corp., a leading producer of second-generation cellulose-based ethanol (CBE), Friday announced it has secured $4 million of additional capital, which will fuel its efforts to hold its competitive position in the alternative energy market. Steve Corcoran, recently appointed CEO of KL Energy, said that even in such taxing economic times, the company’s operations [...]

Squeezing The Orange

QualityStocks — Wed, 04 Mar 2009 20:13:48 +0000

In marketing, an existing customer is considered far more valuable than a new prospect. That’s because it costs a lot of money to get a new customer, while an existing customer is already there, a proven commodity, someone with money who likes your product enough to have actually purchased it before. Businesses depend upon their [...]

Spider On Your Back

QualityStocks — Tue, 03 Mar 2009 17:13:50 +0000

Is that shirt on your back made partially out of spider silk? Well, not yet. But that question may have a different answer in the not too distant future. Researchers around the world are working hard to untangle one of nature’s greatest mysteries: exactly how do spiders make silk and can it be produced on [...]

El Paso Pipeline Partners L.P. – Value – Zacks Rank Buy

Tracey Ryniec — Wed, 11 Feb 2009 00:00:00 +0000

El Paso Pipeline Partners L.P. (EPB), which operates natural gas pipelines, increased its cash distribution to unitholders by 6.7% in January as business remained solid. EPB's dividend currently yields 7.20%. The company is trading at 12.5x forward earnings.

Company Description

El Paso Pipeline Partners is a limited partnership that operates natural gas transportation pipelines and storage. The partnership owns Wyoming Interstate Company, an interstate pipeline transportation business located mainly in Wyoming and Colorado.

It also owns a 40% general partner interest in Colorado Interstate Gas Company (CIG) located in the Rocky Mountains and a 25% interest in Southern Natural Gas Company (SNC), an interstate natural gas company in the southeastern states.

In total, these businesses consist of about 12,300 miles of pipeline and storage facilities.

The partnership was formed by El Pas Corporation to run the assets. El Paso is the largest operator of interstate natural gas pipelines in North America, owning an interest in 42,000 miles of pipeline.

El Paso Raises Its Distribution

On Jan 20, the partnership raised its quarterly distribution by 6.7% to 32 cents per unit for the fourth-quarter 2008 from 30 cents in the prior quarter. The distribution will be paid as of Feb 13 to all unitholders as of the close of business on Jan 30.

"We are pleased to raise our cash distributions as a result of our successful acquisition last year," said Jim Yardley, president and chief executive officer.

"The distribution increase continues our history of raising full quarter distributions since we went public in 2007."

Net Income Jumped 19.5% in the Third Quarter

On Nov 6, El Paso Pipeline Partners reported third quarter 2008 results which saw net income increase 19.5% to $20.8 million from $17.4 million in the year ago period. Net income growth was mainly due to increased earnings from equity investments and the completion of pipeline expansion projects.

During the quarter, the partnership increased its interest in CIG and SNG to 40% and 25%, respectively. The acquisition was financed by the issuance of 27.8 million common units and $150 million of debt.

The acquisition was financed by the issuance of 27.8 million common units, 0.6 million general partner units, and $250 million of debt.

Despite the recent additional debt, the partnership maintains a $750 million revolving credit facility. As of Sep 30, 2008, it had $150 million available capacity. EPB does not anticipate needing to access the capital markets until after 2009.

Consensus Estimates

It's been pretty quiet on the estimates front. Fourth-quarter estimates are unchanged from 3 months ago, at 34 cents. 2008 full-year have fallen 2 cents in the last 90 days whereas full-year 2009 estimates have been holding at $1.41 over that time period.

EPB is scheduled to report fourth-quarter earnings on Feb 26.

Value Fundamentals

El Paso Pipeline Partners is a Zacks #1 Rank (strong buy) stock. It has surprised on earnings 2 out of the last 4 quarters.

EPB is trading at 12.5x forward earnings. It has a price-to-book of 1.6. The company has a solid 1-year return on equity (ROE) of 19.75%. El Paso Partners also is paying a distribution with a current yield of 7.20%.

"EPB" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Titan Machinery, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 10 Feb 2009 00:00:00 +0000

Titan Machinery, Inc. (TITN), the agriculture equipment retailer, continues to expand its network after acquiring 10 more agriculture stores in the Wyoming, Montana, and Minnesota. The company has surprised on estimates 3 out of the last 4 quarters by an average of 69.14%. TITN has a forward P/E of 10.2.

Company Description

Titan Machinery operates a network of 63 full service agricultural and construction equipment stores in North Dakota, South Dakota, Minnesota, Iowa, Nebraska, Wyoming and Montana. Two of the stores are outlet stores. The company represents various brands including, among others, Case IH, New Holland Agriculture, New Holland Construction, and Case Construction.

Titan has been on an acquisition streak in recent weeks.

On Dec 23, the company announced it had acquired Anderson Power and Equipment, Inc., an agriculture equipment dealership in Thief River Falls, Minnesota. Anderson Power, which had been operating since 1972, had reported revenues of $8.6 million for the fiscal year ending March 31, 2008. Titan closed the deal on Dec 22, 2008.

On Jan 23, Titan also reported it had closed on the previously announced acquisition of Western Plains Machinery Co. and WP Rentals. Western Plains and WP Rentals, between them, had 9 construction equipment stores in Montana and Wyoming. The deal closed on Jan 1.

Combined, both companies generated revenues of $48.9 million in fiscal year 2007 which ended Dec 31, 2007, the most recently reported period.

Revenue Jumped 62% in the Third Quarter of 2009

On Dec 15, Titan announced its third quarter 2009 results which easily beat Wall Street estimates by 95.65%, or 22 cents per share. Net income surged 204% to $8.2 million from $2.7 million in the year ago period.

Revenue climbed 62% to $214 million from $132.2 million a year ago. Growth was primarily due to the continued strength of the agriculture economy, acquisitions, and organic growth.

Titan Raises 2009 Guidance

In December, the company was bullish on the rest of 2009 as it saw a strong pipeline for acquisitions, which came to fruition, as well as organic growth.

For the fiscal year 2009, ending on Jan 31, 2009, Titan raised its revenue forecast in the range of $635 million to $675 million compared to the previous guidance of $590 million to $635 million.

Earnings per share climbed to a range of $1.07 to $1.11 from prior guidance of 89 to 94 cents.

Consensus Estimates Rise

Given the strong third-quarter results, 2009 consensus estimates have moved sharply higher in the last 2 months to $1.11 from 93 cents. That is now at the high end of the guidance range.

2010 consensus estimates are also up 11 cents to $1.16 per share in the last 60 days.

Analysts still expect aggressive growth from the company, with a 5-year earnings growth projection of 24%.

Value Fundamentals

Titan Machinery is a Zacks #1 Rank (strong buy). It has surprised 3 out of 4 quarters by an average of 69.14%.

The company is trading at 10.2x forward earnings. It has a price-to-book of 1.22. TITN is scheduled to report fourth-quarter earnings on Mar 17.

"TITN" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Bulletproof REIT Bargains: How to Profit From the Inevitable Real Estate Recovery

Investment U — Thu, 08 Jan 2009 22:38:38 +0000

Bulletproof REIT Bargains: How to Profit From the Inevitable Real Estate Recovery by Robert Williams, Advisory Panelist, The Oxford Club Thursday, January 8, 2009: Issue #912 Editor’s Note: Our colleagues at The Oxford Club have been sorting through the debris from the mortgage and credit crisis. Robert Williams has found a company that’s been bucking the trend, profiting [...]

Resource Stock Roundup: Thursday, January 08th, 2009

Doug Casey — Thu, 08 Jan 2009 19:41:11 +0000

pAfter making gains the last six sessions, the Canadian Markets fell victim to profit taking during Wednesday trading. For the tale of the tape, the TSX Exchange lost 3.70%, while the TSX Gold Index gave back 7.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 2.76% with the declining issuers beating out the advancers by a 467 to 307 margin on volume of 161 million shares traded./p pCrosshair Exploration #38; Mining (AMEX:a href="http://finance.google.com/finance?q=AMEX:CXZ"CXZ/a) and a href="http://finance.google.com/finance?q=Target+Exploration+%26+Mining"Target Exploration #38; Mining/a have agreed to merge in a transaction that would see Target shareholders get 1.2 Crosshair shares for each target share. The move gives Target access to Crosshair’s cash, while Crosshair gets Target’s Wyoming uranium assets. Crosshair ended the session down C$0.05 at#8230;/p

Kraig Biocraft Laboratories, Inc. (KBLB.OB) to Introduce the Next Generation Super Fiber

QualityStocks — Thu, 08 Jan 2009 16:07:59 +0000

Kraig Biocraft Laboratories, Inc. has focused their efforts on developing significant high-performance technical fibers and polymers utilizing their research related to spider genes to create a transgenic variety of silkworms capable of spinning a new “super fiber” that is either similar or an exact copy of natural spider silk, which is known as one of [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) is Led by a Knowledgeable Board of Scientific Advisors

QualityStocks — Mon, 29 Dec 2008 14:32:06 +0000

Malcolm. J. Fraser, Jr. Ph.D. earned his Ph.D from Ohio State University and performed postdoctoral research at Penn State University and Texas A&M University. At the Texan University, he played a key role in developing the genetic expression system which is now a widely used methodology for producing organic molecules, including pharmaceuticals, on an industrial [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) is “One to Watch”

QualityStocks — Thu, 11 Dec 2008 21:53:18 +0000

Headquartered in Lansing, Michigan, Kraig Biocraft Laboratories, Inc. is a biotechnology company focusing on the development of commercially significant polymers and high performance fibers. The Company works with university scientists and laboratories to create new polymers with potentially broad applications. Spider silk gene sequences are at the core of Kraig Biocraft’s technology. Spider Silk is one [...]

Resource Stock Roundup: Wednesday, December 3rd, 2008

Doug Casey — Wed, 03 Dec 2008 18:54:24 +0000

pComing off the second worst one-day sell off since 1987, the Canadian Markets continued to freefall during Tuesday trading with slumping commodity prices and political uncertainty sparking a renewed bout of uncertainty. For the tale of the tape, the TSX Exchange dropped 0.93%, while the TSX Gold Index bucked the down trend by adding 7.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.08% with the declining issuers outpacing the advancers by a 423 to 309 margin on volume of 153 million shares traded./p pa href="http://finance.google.com/finance?q=CVE:EPZ"Esperanza Silver/a and partner Silver Standard (NASDAQ:a href="http://finance.google.com/finance?q=NASDAQ:SSRI"SSRI/a) tabled a 31% jump in measured and indicated gold resources at their San Luis project in Peru. The new tally is 347,000 ounces of gold running 22.3 grams#8230;/p

How Shale Could Dent Clean Energy Hopes

Irwin Greenstein — Fri, 21 Nov 2008 16:34:22 +0000

pWhile no one was looking the Bush Administration quietly changed regulations that would allow oil companies to extract shale from public lands. The U.S. Department of the Interior made both a land grab and a regulatory grab for enormous swaths of shale that have previously been off limits./p pWe believe this is another body blow to the ailing green industry, as Washington taps a source of energy with huge potential returns. Moreover, president-elect Obama has hedged his bets on oil shale - perhaps surprising many green advocates./p pOn October 27, 2008, Obama told supporters in Denver…/p p#8220;When it comes to oil shale right now, I think we have to do more research and more science to discover whether or not the amount of#8230;/p

Clean Energy Fuels Corp. (CLNE): Good for the Environment, Good for Your Portfolio?

QualityStocks — Thu, 06 Nov 2008 13:41:49 +0000

Clean Energy Fuels is a supplier of natural gas as an alternative fuel across North America and designs, builds, finances, and operates fueling stations and supplies compressed natural gas and liquefied natural gas. The company serves approximately 275 fleet customers operating 14,000 natural gas vehicles in public transit, refuse hauling, airports, taxis, seaports, and regional [...]

New Frontier Energy Inc. (NFEEI.OB) Works to Clear Pipeline Right-of-Way, Oil & Gas Connection will Establish Solid Presence in Greater Green River Basin

QualityStocks — Tue, 21 Oct 2008 13:05:42 +0000

Most natural gas and oil companies would be happy with a few producing wells pumping out a respectable amount of oil and gas. Some, however, do their homework to find a location where many wells pump many barrels or cubic feet. A company that can recognize its position quickly, and develop it to maximize a [...]

AmeriWest Energy Corporation (AWEC.OB) Rated “Strong Speculative Buy” by Financial Research Group

QualityStocks — Tue, 30 Sep 2008 00:06:24 +0000

AmeriWest Energy Corp. (OTCBB: AWEC) was recently given a speculative strong buy rating from the research firm Bridge IR Group in their most recent research report. Contained in the report is an informed analysis that also projects a 12-month target price of $1.75. That value is a 450% return to investors at today’s [...]

Force Energy Corp. (FORC.OB) Announces Project Management Company Appointment, Readies Wyoming Oil & Gas Projects

QualityStocks — Tue, 23 Sep 2008 15:08:47 +0000

Over the last year or so, smaller oil and gas exploration and development companies have been popping up across the North American landscape. Each is working to profit from what many hope is a vast untapped pool of undiscovered or left behind oil and gas. At some point, however, the timing of getting this oil [...]

Force Energy Corp. (FORC.OB): Finding Energy Riches in Wyoming

QualityStocks — Tue, 23 Sep 2008 01:09:54 +0000

Force Energy (FORC) is an oil and natural gas exploration company with a focus on drilling and exploring for oil and gas in Wyoming. The company believes Wyoming contains a mean of 2.4 trillion cubic feet of undiscovered natural gas, a mean of 41 million barrels of undiscovered oil, and a mean of 20.5 million [...]

American Oil & Gas Inc. (AEZ) is Taking the Rocky Mountain Route

QualityStocks — Mon, 22 Sep 2008 15:42:42 +0000

American Oil & Gas Inc. is an independent oil and natural gas company headquartered in Denver, Colorado. Commencing operations in January of 2003, the company lists on the American Stock Exchange. They engage in the exploration, development, and production of hydrocarbon reserves, mainly in the Rocky Mountain region. American currently owns interests in three core project [...]

Dutton Associates Featured Company: Gastar Exploration, Ltd. (GST)

QualityStocks — Thu, 18 Sep 2008 14:01:30 +0000

Gastar Exploration Ltd. (AMEX: GST) is an independent energy company engaged in the exploration, development, and production of natural gas and oil in the United States and Australia. The company focuses their efforts on identifying, acquiring, and exploring possible natural gas and oil properties that show the potential to produce significant product. Their [...]

Wyoming Stocks

Fred Fuld — Tue, 16 Sep 2008 03:33:00 +0000

Did you know that Wyoming has a district called the historic J.C. Penny district? James Cash Penny established his first store in this state. Eventually it grew to the chain best known as J.C. Penny.

Here are some interesting facts about Wyoming:

1. New jobs created in Wyoming during 2007 ranked second in the country.
2. No personal income tax.
3. No corporate income tax.
4. Income from the mining industry contributes 2/3 of the total state revenue.
5. Wyoming’s top tourist destinations are: Yellowstone National Park and Grand Teton National Park.
6. Top commodities are: Livestock of cattle, hay, sugar beets and barley.
7. Top mineral commodities are: coal, natural gas, and crude oil.
8. Wyoming is seventh nationwide for oil production.
9. Wyoming ranks number one for coal production in the nation.
10. The southern part of Wyoming is excellent for the production of wind power.

The following companies are connected to the state of Wyoming.

US Energy Corp. (USEG) is a Wyoming based company that explores for and develops uranium, molybdenum, gold, lead, zinc, silver, and oil and gas. The stock has a PE of 1.05. This is a very low cap stock and should therefore be considered very speculative.

Crazy Woman Creek Bancorp Inc. (CRZY.PK) is a bank holding company for Buffalo Federal Savings Bank, which serves the Johnson, Campbell, and Sheridan counties in Wyoming. The stock has a P/E of 19. It has a very low market cap, so it should therefore be considered very speculative and illiquid. For their recent reported quarter, they had a 31% drop in earnings on a 9.6% increase in revenues.

Victory Acquisition Corp. (VRY) was founded in January 2007. It currently does not have substantial operations. It plans on increasing its business by purchasing or merging with other companies. The stock has a PE of 60.

Double Eagle Petroleum Co. (DBLE) produces and markets oil and natural gas. The stock generated a loss of $1.08 per share. It has a forward PE of 16.

MDU Resources Group Inc. (MDU) is a distributor of electricity and natural gas, and is also involved in construction services in Wyoming, North Dakota, South Dakota, and Montana. The stock has a PE of 12, a PEG of 0.98, and it pays a yield of 1.9%.

Glacier Bancorp (GBCI) is a holding institution that renders banking services in Wyoming, Montana, Idaho, Utah, and Washington. The stock has a PE of 16, a PEG of 14, and It pays a yield of 2.4%.

Black Hills Corp. (BKH), controls an energy company that delivers energy to customers in Wyoming, South Dakota, and Montana. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Gastar Exploration, Ltd. (GST) explores for and develops coal bed methane property in the Powder River Basin of Wyoming and Montana. They also explore and develop oil and gas properties in North America and Australia. The stock has a forward PE of 42. The stock trades on the American Stock Exchange.

Questar Corp. (STR) is in the business of producing and selling natural gas and oil in Wyoming, Utah, and Idaho. The stock has a PE of 16, a PEG of 1.57, and it pays a yield of 0.9%.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Author does not own any of the above at this time.

By Stockerblog.com

Samson Oil & Gas Ltd. (SSN): Exploring the West for Oil and Gas Treasure

QualityStocks — Tue, 16 Sep 2008 02:09:54 +0000

Samson Oil & Gas (SSN) is a developer, explorer and producer of oil and natural gas with projects currently operating in Oklahoma, Texas and Wyoming. The company’s Sabertooth Well project in Brazoria County, Texas is worth roughly $13 million to the company, but could eventually be worth exponentially more. Samson has also partnered with energy [...]

Target Exploration and Mining (TEM: TSX-V)

The Energy Report — Fri, 12 Sep 2008 00:05:57 +0000

Target Exploration & Mining TICKER: TEM: TSX-V DESCRIPTION: Target Exploration & Mining is a uranium-focused resource company with projects located in the U.S. and Canada. Its flagship property, Bootheel, is in the Shirley Basin of Wyoming and hosts a significant historical resource. The property is ventured with Ur-Energy who bring with them additional management expertise [...]

North Dakota Stocks

Fred Fuld — Sun, 07 Sep 2008 07:46:00 +0000

North Dakota’s economy is mainly dependant on agriculture, 25% of its economic base to be more precise. Natural resources are the most valuable asset this state possesses. Consider the following key facts about North Dakota:

1. It ranks number one nationally for its potential to produce wind power.
2. The state also produces biofuels like ethanol and biodiesel.
3. There are more than 160 certified organic farms in the state.
4. North Dakota lowered its corporate income tax beginning January 1, 2007. North Dakota corporate taxable income percentages vary from 2.6 to 6.5%.
5. The state individual income tax varies from 2.1% to 5.5%.
6. North Dakota allows a corporate tax exemption of up to 5 years for new or expanding technology based businesses.
7. North Dakota is one of the safest states in the country.
8. North Dakota produces about 2.7% of the total U.S. oil production.
9. The state population is only 635,867
10. North Dakota produce approximately 45 million barrels of oil in 2007

The following companies are connected to North Dakota:

MDU Resources Group Inc. (MDU) is a distributor of electricity and natural gas, and is also involved in construction services segment in Montana, North Dakota, South Dakota, and Wyoming. The stock has a PE of 12, a PEG of 0.98, and it pays a yield of 1.9%.

Investors Real Estate Trust (IRET) is an investment trust focused in real estate properties that generate income in the United States. The stock has a PE of 55, a PEG of 2.53, and it pays a yield of 6.6%.

Titan Machinery, Inc. (TITN) runs agricultural stores in North America. It is also a retailer of construction equipment. The stock has a PE of 30, and a PEG of 1.14. The stock has a market cap of $400 million.

Continental Resources Inc. (CLR), although not based in North Dakota, is an oil and natural gas explorer and developer which is the largest land leaseholder in the North Dakota part of the Bakken shale. The stock has a PE of 24, and a PEG of 0.41.

EOG Resources, Inc. (EOG), the oil and gas company, although not based in North Dakota, has successfully drilled in the Bakken Formation in North Dakota where they own approximately 320,000 net acres. The stock has a PE of 24, a PEG of 0.89, and a yield of 0.6%.

Check out stocks from some other states: Arizona stocks, Oregon stocks, and Nevada stocks.

Author does not own any of the above.

By Stockerblog.com

Montana Stocks

Fred Fuld — Thu, 04 Sep 2008 23:35:00 +0000

Ranking 48th in population when compared to the rest of the states, Montana has plenty of room to accommodate tourists and visitors, as well as plenty of natural wonders to show, including Yellowstone National Park and Glacier National Park. Tourism, agriculture, and mining are Montana’s primary source of income. Some interesting facts about Montana:

1. The mining industry contribution to the state economy in 2005 was $2.3 billion.
2. It ranks number 6 in coal production in the United States.
3. Montana currently requires that public utilities companies obtain 5% of its energy from renewable sources, with a goal of 15% by the year 2015.
4. Wind power is of major importance to the state, Montana potential wind power generation ranks it number 5 nationwide.
5. Montana’s main crop is wheat.
6. Montana is rich in gas, oil, and coal.
7. Montana’s gross state product for 2007 was $34,253 million.
8. Copper is becoming increasingly important in Montana due to its rising value.
9. Approximately 8.6% of income goes to State income tax in Montana, well under the average 9.7% nationally.
10. Montana Corporate income tax is based on a flat rate of 6.75% on all corporate income.

The following companies are connected to the state of Montana:

Glacier Bancorp (GBCI) is a holding institution that renders banking services in Montana, Idaho, Wyoming, Utah, and Washington. The stock has a PE of 16, a PEG of 14, and It pays a yield of 2.4%.

Stillwater Mining Co. (SWC) specializes in the mining, and refining of palladium and other metals in Montana. The stock has a PE of 72.

Right Now Technologies (RNOW), delivers software in the U.S., Europe and Asia. The company generated a loss per share of $0.40, but it has a forward PE of 67.

Semitool Inc (SMTL) makes, sells and delivers semiconductor devices. The stock has a PE of 88, and a PEG of 1.70. This is a very low cap stock and should therefore be considered very speculative.

Black Hills Corp. (BKH), although not based in Montana, controls an energy company that delivers energy to customers in Montana, South Dakota, and Wyoming. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Northwestern Corp. (NWE), although not based in Montana, delivers energy to customers in Montana, South Dakota, and Nebraska. The stock has a PE of 15, and a PEG of 1.49. It pays a yield of 5.2%.

Gastar Exploration, Ltd. (GST), although not based in Montana, explores for and develops coal bed methane property in the Powder River Basin of Montana and Wyoming. They also explore and develop oil and gas properties in North America and Australia. The stock has a forward PE of 42. The stock trades on the American Stock Exchange.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Did you know that the most expensive house in the world is being built in Montana?

Author does not own any of the above mentioned stocks.

By Stockerblog.com

Tetra Tech Inc. (TTEK) – Reaching the World

QualityStocks — Thu, 04 Sep 2008 14:05:42 +0000

With over 275 offices worldwide and approximately 8,500 employees, Tetra Tech Inc. is a leading provider of consulting, engineering, and technical services. Founded in 1966, and listed on the NASDAQ, the company operates in three segments: Resource Management, Infrastructure Services, and Communications Services. Their corporate mission is to be the premier global consulting and engineering [...]

South Dakota Stocks

Fred Fuld — Sat, 30 Aug 2008 22:36:00 +0000

What is today the state of South Dakota was actually acquired by the United States as part of the Louisiana Purchase in 1803 for $15 million. Jefferson’s investment has definitely paid huge dividends. Some interesting facts about South Dakota follow:

1. There is no corporate income tax.
2. There is no personal income tax.
3. South Dakota has a population of about 800,000.
4. The state gross product in 2007 was $34,000 million.
5. Forbes Magazine ranked Sioux Falls as the Best Small Place to do business in 2008.
6. The South Dakota housing market is among the most affordable in the country.
7. Mt. Rushmore National Memorial is one of the most popular tourist destinations in the state.
8. 10% of Dakota’s gross product is produced by the manufacturing industry.
9. Tourism generates over $1 billion in revenues each year.
10. Black Hills, South Dakota is the leading gold mining center in the United States.

The following companies are headquartered in South Dakota. They all have a market cap of over $500 million.

Black Hills Corp. (BKH) controls an energy company that delivers energy to customers in South Dakota, Wyoming, and Montana. The stock has a PE of 16, a PEG of 2.04. It pays a yield of 4.1%.

Verasun Energy Corp. (VSE) produces and sells ethanol and byproducts of ethanol. The stock has a PE of 10, and a PEG of 1.52.

Northwestern Corp. (NWE) delivers energy to customers in South Dakota, Montana, and Nebraska. The stock has a PE of 15, a PEG of 1.49. It pays a yield of 5.2%.

Daktronics Inc. (DAKT) produces and sells electronic scoreboards, and electronic displays. The stock has a PE of 16, a PEG of 2.1, and it pays a yield of 0.5%.

Raven Industries (RAVN) is in the business of making and selling industrial, agricultural, military and aerospace equipment. The stock has a PE of 25, a PEG of 1.67, and it pays a yield of 1.2%.

Check out stocks from some other states: Nevadastocks, Idaho stocks, and Colorado stocks.

Author does not own any of the above.

By Stockerblog.com

Utah Stocks

Fred Fuld — Sat, 30 Aug 2008 03:47:00 +0000

Utah’s arid land is not very suitable for agriculture, but it is rich in minerals, making it very profitable for the mining industry. Strategically located, Utah’s economy is one of the strongest in the nation. Some interesting facts about Utah are:

1. Utah has recently cut personal income taxes by $400 million. Beginning January 1, 2008, Utah applies a fixed tax rate of 5% to all taxpayers.

2. They have incentives for corporations to relocate to Utah, and may award eligible companies up to $500,000.

3. The mining industry in the state focuses primarily on copper, gold, molybdenum, and magnesium.

4. The aerospace industry, together with the military industry, are very important to Utah’s economy.

5. There are 7 universities and colleges in the Utah offering programs geared toward the aerospace industry.

6. Electric energy in Utah is among the cheapest in the country.

7. Utah’s call centers employ over 31,000 people.

8. More than 4,000 IT companies are located in the State, most in Salt Lake County.

9. The manufacturing industry accounts for almost 10% of all employment in Utah.

10. The nutritional supplement industry in Utah produces up to 20% of the nutritional supplements found in the United States.

The following companies are all headquartered in Utah, and have market caps over $600 million.

Questar Corp. (STR) is in the business of producing and selling natural gas and oil in Utah, Wyoming and Idaho. The stock has a PE of 16, a PEG of 1.57, and it pays a yield of 0.9%.

Huntsman Corp. (HUN) sells various types of chemical products that are later utilized in industries from refrigeration, to footwear. The stock generated a loss of 54 cents per share. It has a forward PE of 15, and it pays a yield of 3.1%.

Myriad Gentics Inc. (MYGN) is in the biotechnology industry. The company makes and sells molecular diagnostic products utilized by the health industry. The stock has a PE of 65.

Zions Bancorp. (ZION) renders banking services in the United States. The stock has a PE of 8, a PEG of 1.37, and it pays a yield of 6.9%.

Energy Solutions (ES) renders services to government and commercial clients. The services it provides are cleaning of nuclear plants, usually involving radioactive materials, and the disposal of such materials. The stock has a PE of 60, a PEG of 1.85, and it pays a yield of 0.5%.

Omniture Inc. (OMTR) designs and markets software, aimed at the management of businesses. The stock generated a loss of 33 cents per share; it has a forward PE of 26, and a PEG of 1.25.

Extra Space Storage (EXR) business activities include the purchase, conditioning, sell, and rental of self-storage space. The stock has a PE of 30, a PEG of 1.91, and it pays a yield of 6.5%.

Nu Skin Enterprises Inc. (NUS) is in the business of creating nutritional supplements. The stock has a PE of 21, a PEG of 1.21, and it pays a yield of 2.6%.

Skywest Inc. (SKYW) is an airline in the United States. It flies to the United States, Canada, Mexico and the Caribbean. The stock has a PE of 7, a PEG of 0.7, and it pays a yield of 0.7%.

Headwaters Inc. (HW) engages in the delivery of products and services to the coal industry and the non-conventional energy industry. The stock has generated a loss of $1.15 per share and it has a forward PE of 15.

Check out stocks from some other states: Arizonastocks, Oregon stocks, and Nevada stocks.

Author does not own any of the above.

By Stockerblog.com

Ameriwest Energy Corp. (AWEC.OB) Expands Geary Prospect Holdings to 3,040 Acres in Promising Powder River Basin

QualityStocks — Wed, 27 Aug 2008 16:47:37 +0000

The Rocky Mountain region of the United States has an estimated 34 million barrels of original oil. After this oil is recovered by traditional means, approximately 23 billion barrels of oil will be left behind. Ameriwest Energy Corp. (OTCBB: AWEC) has positioned itself to capitalize on this oil, focusing on the production of underdeveloped oil [...]

Grab Your Shorts ‘Cause the Tide Has Turned

Graham Summers — Tue, 26 Aug 2008 13:38:55 +0000

Aug 26th, 2008: If stocks don't rebound strongly today, the next leg down is here. Prepare accordingly.

Wescorp Energy Inc. (WSCE.OB) Successfully Completes Nitrogen Testing on Water Remediation Unit

QualityStocks — Mon, 25 Aug 2008 12:26:10 +0000

Excellent results increase potential that Kyoto Credits will be available for operators utilizing Wescorp’s remediation units Wescorp Energy Inc. (OTCBB: WSCE), an oil and gas technology solutions provider, is pleased to announce that Nitrogen Testing on its 2,000 barrel per day commercial water remediation test unit has been successfully completed. Wescorp’s water remediation units use a [...]

“Encouraging” Economic Outlook From Bernanke and Buffett Boost U.S. Markets

Money Morning — Sun, 24 Aug 2008 23:44:14 +0000

By Jennifer Yousfi Managing Editor U.S. markets rallied as soothing comments from two of the most influential minds in finance combined to assuage investor fear and push indices higher. The... Money Morning is here to help investors profit hand...

Storm Cat Energy Corp. (SCU) is Striving to be the Cat’s Meow for Their Shareholders

QualityStocks — Fri, 22 Aug 2008 13:37:28 +0000

Storm Cat Energy is an independent oil and gas company. Trading on the NASDAQ under the symbol SCU and on the Toronto Stock Exchange under the symbol SME, they focus on the exploration, production, and development of large, unconventional gas reserves. They look for these reserves primarily in fractured shales, coal beds, and tight sand [...]

SunCal Energy Inc. (SCEY.OB) Announces Gas Tie-ins and New Drill Programs, In-Ground Reserve Testing Indicates Long-term Potential

QualityStocks — Thu, 21 Aug 2008 15:41:53 +0000

As a stampede of oil and gas exploration and development companies race toward the prize of higher oil and gas prices, the legwork needed to efficiently capitalize is often lost to the lure of a quick strike. Exploration and development of past and future oil and gas prospects takes time, research and money. The temptation [...]

Rancher Energy Corp. (RNCH.OB) Receives Critical Approvals, Adds the “Big Muddy” to its Potentially Profitable Well Sites

QualityStocks — Wed, 20 Aug 2008 16:01:40 +0000

As smaller oil and gas exploration companies enter the market, older oil and gas leases are getting snapped up. Often these companies make the prospects of profit sound like a gusher is going to come spewing forth at the drop of a hat. Unfortunately for them, this is rarely the case. For more experienced oil [...]

Outdoor Channel Holdings Inc. (OUTD) – A Company that Loves to Play Outdoors

QualityStocks — Wed, 20 Aug 2008 13:36:54 +0000

Trading on the NASDAQ Global Market, Outdoor Channel Holdings Inc. owns and operates the Outdoor Channel. They are the leading channel for outdoor TV programming. As part of the General Entertainment industry, the company has their corporate headquarters in Temecula, California. Formerly known as Global Outdoors Inc. they became a publicly traded company in 1985. The [...]

WStreet Newsletter Recommends Mainland Resources

CEO Blogger — Sat, 16 Aug 2008 18:03:54 +0000

viastockadvisors Mainland Resources, a small natural gas play, could be a giant in the space in a short period of time,” says Charles Payne. In his WStreet Maket Commentary he explains, “The company involved in the super exciting Haynesville shale region, which could be one of the largest domestic on shore natural gas fields ever.” “The stock has [...]

Earnings Preview for Aug 18 – 22

Charles Rotblut — Fri, 15 Aug 2008 00:00:00 +0000

Dow components Hewlett-Packard (HPQ) and Home Depot (HD) headline the last official week of second-quarter earnings season. Joining them will be S&P 500 members Gap (GPS), Lowe's (LOW), Limited (LTD) and Target (TGT).

Overall, we have confirmed reports from 106 companies, 13 of which are in the S&P 500. Retailers will again be prominent, with 40 listed to release results.

There is not much on the economic calendar, though we will get inflation numbers on Tuesday. Key data will include:

Tuesday: July producer prices (PPI), July housing starts, July building permits
Wednesday: Weekly crude inventories
Thursday: July Leading Indicators, August Phili Fed survey, weekly initial jobless claims

The Kansas City Fed will hold its economic symposium at Jackson Hole, WY. Fed Chairman Fed Ben Bernanke will speak about financial stability on Friday.

Volume could be modest through Labor Day as traders try to get in late summer vacations. Late August can be tricky for the markets, so be prudent. Oil remains a wildcard and it is hurricane season.

Companies That Could Issue Positive Earnings Surprises during the Week of Aug 18 - 22

Aeropostale (ARO) enjoyed a 13% increase in August same-stores sales, at a time when many other retailers were struggling. The strong performance led the teen apparel chain to raise its second-quarter EPS guidance by 5 cents to between 30 and 31 cents per share. Brokerage analysts believe the company will report 31 cents per share. ARO has surprised to the upside for 3 consecutive quarters, so current projections may prove to be conservative. Aeropostale is scheduled to report on Thursday, Aug 21, after the close of trading.

Discount retailer Ross Stores (ROST) credited bargain-hunting consumers, the stimulus checks and favorable weather for driving July same-store sales 4% higher. Given last month's good performance, the company believes quarterly profits will total between 53 and 54 cents per share, a slight increase over previous guidance. Revisions by 5 brokerage analysts pushed the consensus earnings estimate 2 cents higher to 54 cents per share. ROST has topped expectations for 3 consecutive quarters. Ross Stores is scheduled to report on Wednesday, Aug 20, before the start of trading.

Companies That Could Issue Negative Earnings Surprises during the Week of Aug 18 - 22

Trends were not favorable for Saks (SKS), which experienced a 5.3% drop in August same-store sales. The company observed that business trends worsened as the second quarter progressed and, as a result, brokerage analysts have been steadily lowering their projections. The second-quarter consensus estimate calls for a loss of 18 cents per share, reflecting cuts from a majority of the 7 covering analysts. SKS missed expectations last quarter by a margin of 4 cents per share. Saks is scheduled to report on Tuesday, Aug 19, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Surprise Trader can help you turn earnings surprises into quick profits. Learn how.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Aug 18 - 22¹.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time
Analog Devices	ADI	$0.45	$0.38	7.3%	8/19/2008	AMC
Amer Woodmark	AMWD	$0.11	$0.34	(100.0%)	8/20/2008	BTO
Anntaylor Stres	ANN	$0.47	$0.50	4.4%	8/22/2008	BTO
Accuray Inc	ARAY	$0.03	$0.01	(80.0%)	8/19/2008	AMC
Aeropostale Inc	ARO	$0.31	$0.19	4.0%	8/21/2008	AMC
Acorn Intl-Adr	ATV	$0.08	$0.09	(55.6%)	8/20/2008	N/A
Avanex Corp	AVNXD	$0.06	$0.00	100.0%	8/21/2008	AMC
Blue Coat Sys	BCSI	$0.11	$0.22	(33.3%)	8/21/2008	AMC
Bebe Stores Inc	BEBE	$0.17	$0.21	0.0%	8/21/2008	AMC
Bj'S Wholesale	BJ	$0.57	$0.46	7.4%	8/20/2008	BTO
Burger King Hld	BKC	$0.34	$0.29	11.1%	8/21/2008	BTO
Buckle Inc	BKE	$0.60	$0.38	7.0%	8/21/2008	BTO
Barnes & Noble	BKS	$0.09	$0.12	0.0%	8/21/2008	BTO
Bon-Ton Stores	BONT	($1.43)	($0.91)	14.0%	8/21/2008	BTO
Bally Tech Inc	BYI	$0.54	$0.33	10.6%	8/20/2008	AMC
Concurrent New	CCUR	$0.09	($0.10)	0.0%	8/19/2008	BTO
Charming Shoppe	CHRS	$0.00	$0.14	183.3%	8/20/2008	N/A
Candela Corp	CLZR	($0.09)	($0.03)	(28.6%)	8/20/2008	AMC
Casual Male Ret	CMRG	$0.05	$0.07	(100.0%)	8/21/2008	BTO
China Techfaith	CNTF	$0.08	($0.09)	(12.5%)	8/18/2008	AMC
Cost Plus Inc	CPWM	($0.92)	($0.64)	(3.1%)	8/21/2008	AMC
Salesforce.Com	CRM	$0.08	$0.04	50.0%	8/20/2008	AMC
China Sunergy	CSUN	$0.03	($0.14)	125.0%	8/22/2008	BTO
Cato Corp A	CTR	$0.42	$0.39	5.4%	8/21/2008	BTO
Citi Trends Inc	CTRN	$0.17	$0.07	5.9%	8/20/2008	AMC
Cyberonics Inc	CYBX	$0.03	($0.31)	300.0%	8/21/2008	BTO
Ditech Networks	DITC	($0.24)	($0.02)	(182.4%)	8/21/2008	AMC
Dicks Sprtg Gds	DKS	$0.36	$0.41	(5.6%)	8/21/2008	N/A
Edap Tms Sa-Adr	EDAP	($0.21)	($0.11)	(75.0%)	8/21/2008	BTO
E-House China	EJ	$0.13	$0.09	10.0%	8/20/2008	BTO
Eaton Vance	EV	$0.47	$0.48	0.0%	8/20/2008	BTO
Foot Locker Inc	FL	$0.01	($0.12)	(6.7%)	8/21/2008	AMC
Focus Media Hld	FMCN	$0.35	$0.32	7.1%	8/17/2008	AMC
Frontline Ltd	FRO	$2.38	$1.65	(2.4%)	8/21/2008	N/A
Stealthgas Inc	GASS	$0.34	$0.37	6.3%	8/19/2008	BTO
Gamestop Corp	GME	$0.28	$0.14	11.8%	8/21/2008	BTO
Gap Inc	GPS	$0.31	$0.21	9.7%	8/21/2008	AMC
Gymboree Corp	GYMB	$0.23	$0.19	1.2%	8/20/2008	AMC
Hasting Entmt	HAST	$0.13	$0.09	21.7%	8/18/2008	BTO
Home Depot	HD	$0.60	$0.77	10.8%	8/19/2008	BTO
Hibbet Sports	HIBB	$0.15	$0.15	14.3%	8/21/2008	AMC
Heinz (Hj) Co	HNZ	$0.66	$0.63	0.0%	8/21/2008	BTO
Hot Topic Inc	HOTT	($0.01)	($0.04)	0.0%	8/20/2008	AMC
Harris Interact	HPOL	($0.01)	$0.06	(500.0%)	8/22/2008	BTO
Hewlett Packard	HPQ	$0.83	$0.71	2.3%	8/19/2008	AMC
Hurray Hldg-Adr	HRAY	$0.00	$0.01	333.3%	8/21/2008	AMC
Hormel Foods Cp	HRL	$0.38	$0.41	1.8%	8/21/2008	BTO
Chipmos Tec Ltd	IMOS	$0.01	$0.13	(300.0%)	8/20/2008	AMC
Intuit Inc	INTU	($0.12)	($0.06)	3.1%	8/21/2008	AMC
Isoray Inc	ISR	($0.07)	N/A	(33.3%)	8/20/2008	BTO
Jds Uniphase Cp	JDSU	$0.04	$0.06	11.1%	8/20/2008	AMC
Jack Henry Assc	JKHY	$0.32	$0.32	(11.8%)	8/19/2008	AMC
Jamba Inc	JMBA	$0.02	$0.04	(55.6%)	8/21/2008	AMC
Kensey Nash Cp	KNSY	$0.32	$0.11	12.0%	8/21/2008	BTO
Key Tronic	KTCC	$0.13	$0.17	57.1%	8/19/2008	AMC
Lancaster Colon	LANC	$0.32	$0.54	(31.8%)	8/21/2008	BTO
Lowes Cos	LOW	$0.56	$0.67	2.5%	8/18/2008	BTO
Limited Inc	LTD	$0.20	$0.20	42.9%	8/20/2008	AMC
Lsi Industries	LYTS	$0.07	$0.32	(44.4%)	8/21/2008	BTO
La-Z-Boy Inc	LZB	($0.06)	($0.13)	0.0%	8/19/2008	AMC
Medtronic	MDT	$0.69	$0.62	6.8%	8/19/2008	BTO
Mentor Graphics	MENT	($0.17)	$0.09	(40.0%)	8/20/2008	BTO
Met-Pro Corp	MPR	$0.18	$0.17	0.0%	8/21/2008	BTO
Myriad Genetics	MYGN	($0.23)	($0.18)	0.0%	8/19/2008	BTO
Noah Education	NED	$0.05	N/A	53.8%	8/21/2008	AMC
Novatel Wireles	NVTL	$0.12	$0.25	7.7%	8/19/2008	AMC
Open Text Corp	OTEX	$0.53	$0.52	6.8%	8/19/2008	AMC
Patterson Cos	PDCO	$0.39	$0.35	0.0%	8/21/2008	BTO
Peoples Educatn	PEDH	$0.06	$0.01	5.0%	8/21/2008	AMC
Childrens Place	PLCE	($0.45)	($0.97)	37.5%	8/21/2008	BTO
Perrigo Company	PRGO	$0.40	$0.24	4.8%	8/18/2008	BTO
Pac Sunwear Cal	PSUN	$0.06	$0.07	(88.9%)	8/21/2008	AMC
Phillips Van He	PVH	$0.65	$0.68	3.5%	8/20/2008	AMC
Perfect World	PWRD	$0.38	N/A	22.6%	8/18/2008	BTO
Qad Inc	QADI	$0.00	$0.02	(100.0%)	8/21/2008	AMC
Raven Inds Inc	RAVN	$0.31	$0.32	20.0%	8/19/2008	BTO
Regis Corp/Mn	RGS	$0.58	$0.53	0.0%	8/20/2008	BTO
Rosetta Genomic	ROSG	($0.34)	($0.19)	(3.1%)	8/19/2008	BTO
Ross Stores	ROST	$0.54	$0.37	3.5%	8/20/2008	BTO
Intl Royalty Cp	ROY	$0.04	$0.03	(66.7%)	8/18/2008	N/A
School Specialt	SCHS	$1.97	$1.87	(1.5%)	8/21/2008	BTO
Scansource Inc	SCSC	$0.47	$0.48	(12.5%)	8/21/2008	AMC
Shoe Carnival	SCVL	$0.00	$0.01	(2.6%)	8/21/2008	BTO
Schawk Inc-Cl A	SGK	$0.20	$0.36	0.0%	8/18/2008	AMC
Shamir Optical	SHMR	$0.11	$0.12	30.8%	8/21/2008	BTO
Shoretel Inc	SHOR	($0.07)	$0.05	0.0%	8/21/2008	AMC
Saks Inc	SKS	($0.18)	($0.14)	(23.5%)	8/19/2008	BTO
Stein Mart Inc	SMRT	($0.13)	$0.05	383.3%	8/21/2008	BTO
Semtech Corp	SMTC	$0.17	$0.14	21.4%	8/20/2008	AMC
Synopsys Inc	SNPS	$0.31	$0.23	6.9%	8/20/2008	AMC
Renesola Lt-Adr	SOL	$0.31	N/A	16.7%	8/19/2008	BTO
Stage Stores	SSI	$0.23	$0.23	(14.3%)	8/21/2008	N/A
Suntech Pwr Hld	STP	$0.33	$0.25	25.0%	8/20/2008	BTO
Symmetricom Inc	SYMM	$0.05	$0.04	(133.3%)	8/20/2008	AMC
Tech Data Corp	TECD	$0.46	$0.50	0.0%	8/21/2008	BTO
Target Corp	TGT	$0.77	$0.80	2.8%	8/19/2008	BTO
Aktieselskabet	TRMD	$1.29	$1.00	(28.6%)	8/20/2008	N/A
Tower Semicond	TSEM	($0.22)	($0.28)	(20.0%)	8/20/2008	BTO
Trina Solar Ltd	TSL	$0.78	$0.32	6.3%	8/18/2008	BTO
Toro Co	TTC	$0.97	$1.02	0.0%	8/21/2008	BTO
Verigy Ltd	VRGY	$0.28	$0.50	27.8%	8/21/2008	AMC
Valuevision Cla	VVTV	($0.21)	($0.11)	(28.1%)	8/20/2008	N/A
Wet Seal Inc -A	WTSLA	$0.10	$0.07	12.5%	8/21/2008	AMC
Xinhua Finance	XFML	$0.05	N/A	0.0%	8/18/2008	AMC
Yucheng Technol	YTEC	$0.10	$0.17	(16.7%)	8/18/2008	BTO
Zumiez Inc	ZUMZ	$0.07	$0.11	66.67%	8/21/2008	AMC

BMO = Before The Market Open, AMC = After Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

"ROST" Free Stock Analysis: Buy? Sell? Hold?
"PRFT" Free Stock Analysis: Buy? Sell? Hold?
"LINT" Free Stock Analysis: Buy? Sell? Hold?
"HOMD" Free Stock Analysis: Buy? Sell? Hold?
"ARO2" Free Stock Analysis: Buy? Sell? Hold?
"DNC" Free Stock Analysis: Buy? Sell? Hold?
"GAPS" Free Stock Analysis: Buy? Sell? Hold?
"HWP" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Capital City Energy Group, Inc. (CETG.OB) is Led by a Strong Management Team

QualityStocks — Thu, 14 Aug 2008 01:46:40 +0000

Capital City Energy Group, Inc. (OTCBB: CETG) is an oil and natural gas company whose business has evolved from being an innovative leader in the design, management, and sponsorship of retail and intuitional direct participation energy programs, to become one of the few vertically integrated independent oil and natural gas companies. The company focuses [...]

Investing In Silver, Enhanced Oil Recovery – The Commodity Investor QA

Thomas Keller — Wed, 16 Jul 2008 15:36:13 +0000

With Matt Badiali Q: What are your current recommendations for silver plays, including low, medium, and high risk? – B.C. A: I think precious metals are a pretty low-risk investment in general right now. We’re on the brink of a global inflation crisis. I’m no economist, but I know inflation when I see it. The price of oil [...]

CNBC Bonus Bucks Trivia: In the slideshow, “States with the Biggest Declines and Increases in Home Prices,” where does Wyoming stand?

William Trent — Thu, 05 Jun 2008 15:17:08 +0000

In the slideshow, “States with the Biggest Declines and Increases in Home Prices,” where does Wyoming stand? I couldn’t find the slideshow, but found this reference which appears to be correct elsewhere: “OFHEO: Wyoming had a 6.3% gain in home-price appreciation from Q1’07 to Q1’08… If CNBC wants to direct the traffic to their site they’ll have to [...]

Thailand’s Demographic Window of Opportunity

Edward Hugh — Mon, 24 Dec 2007 22:18:00 +0000

This post is really a supplement to Claus's post Thailand at the Crossroads, and a complement to Manuel's election coverage. Now Claus points out that Thailand is in the middle of its ongoing Demographic Transition, and at the high point of that favourable moment when what has become known to economists as the Demographic Dividend process is at its height.

The demographic transition is - in simple language - a movement upwards in population median ages. Societies (one after another) move steadily from being high fertility, low life expectancy, low median age ones (think Niger, or Mali, or Uganda right now), to low fertility, high life expectancy, high median age ones (think Germany, Japan and Italy) in a more or less steady and ongoing fashion. We know of course what the starting point of this transition is (the above mentioned high fertility societies have a median age in the 17/18 range) but we don't know where the end point is, since while Germany, Japan and Italy currently have a median age of 43 things clearly are not set to stop at this point, and we won't really know what the ceiling is in this process till we reach it. So on this count we have to watch and wait. But observing the evolution of these three "elderly" societies we can identify some of the processes which are at work as population median ages rise, so while we are waiting for the final readout there is still plenty of work to be done - in terms of policy measures to be adopted - in the meantime. Thailand is one of those fortunate countries who, having arrived on the developing economy scene rather later than others, can learn somewhat from those who have gone before. If she is ready willing and able to listen that is.

Median Ages

Now Claus and I do put quite a lot of store by the median age reading of a society, and we do this for all sorts of reasons. Basically median ages serve as a very convenient proxy for all kinds of economically important phenomena like saving and borrowing, fixed capital formation, construction activity and export dependence, productivity, and ultimately labour and consumer supply.

The movement up through the various median age levels involves a constant change in population structure, and at one point these changes are very favourable to economic development. These positive changes provide the background to what is known as the demographic dividend process. At the end of the day the transition from being a very low median age to being a very high one involves a shift in the dependent population, from having a very high proportion of young dependent population to having a very high proportion of elderly dependent. In the middle lie the most favourable years, which come in two stages. In the first stage there is simply an increase in the volume of people available for the transition to work in an expanding market economy. This could be thought of as the accumulation of inputs phase - during which time, as we can see in the chart below, the rate of population inctrease continues to be large - and at this point a societies ability to incorporate ever more people into relatively low-value economic activities at a rapid rate produces a growth spurt - like the one we are seeing now in many of the emerging economies. This is why, for example, Thailand can easily contemplate annual growth rates of 7 or 8 percent at this point without setting off the inflation alarms, something which, unfortunately, is not possible in Eastern Europe.

But the dividend doesn't end just when the steady downward movement in fertility starts to make itself felt by reducing the inflow of young workers at the labour market entry point, since there is a second dividend phase were the accumulation of quantity is followed by the accumulation of quality, and this is made possible by the steadily growing share of workers in the 25 to 50 age group, and by the rising human capital quality of the new young labour market entrants. This is when you could expect a productivity driven "TFP revolution" and a steady shift through the value sectors towards the more productive and higher value ones.

Of course there is nothing automatic about any of this, demography just provides an environment, then it is down to policy to benefit from or fritter the potential which exists.

Thailand at this precise point in time is, as Claus indicates, at the crossroads. Labour supply means it is possible to obtain quite strong GDP growth simply by increasing employment, without necessarily achieving large scale productivity gains. But Thailand now needs to move on to the second stage, and rapidly so, since the low fertility environment means that this flow of labour is steadily going to dry up (of course migration from Malaysia and Myanmar can help offset this to some extent) and that growth will now need to become more productivity "intensive" if living standards are to continue to rise.

Why is this such an important moment. Well let's look at Thailand's median age.

As we can see, Thailand's median age has been rising quite rapidly since 1990. It is now in the early 30s - which is definitely a very favourable point - but by 2020 (according to the UN median forecast) it can have risen to 37. And this estimate is very likely rather conservative, since it anticipates a rebound in fertility from the current, below replacement level, of 1.6 TFR.

This forecast may well be overly optimistic when you think of what has happened in other developed Asian societies like Japan, Singapore, South Korea, Hong Kong, Taiwan, where fertility has fallen to the 1.2-1.3 range (and of China, where things may well be heading rapidly in this direction). Increasing education among women and rising living standards may well lead to increasing birth postponement (women having children at later ages) and we already have extensive evidence of the impact of this process on the TFR readout over extended periods of time.

Also life expectancy has been rising, and may well continue to rise more rapidly than the median forecast anticipates.

What all of this means is that if the upside risk to the Thai median age forecast turns out to be the case, then Thai median age could easily be brushing up against the watershed median age of 40 by the time we get to 2020. This age is important, since it seems to mark the frontier between an internal consumption driven society to an export dependent one. If Thailand hasn't made the leap from being a developing to a developed economy by this point her future could become very complicated. So the years to come are critical, which is why we are speaking of "crossroads".

Nowhere is this situation clearer than in the evolution of the 15 to 19 age group (see chart below). Thailand has a "loval peak" in this population around 2012. So during the next few years there will be a growing number of young people entering the labour market. So this is a very good time to get the labour intensive part of the development operation done. Post 2012 Thailand can move progressively towards greater dependence on productivity and TFP (if all goes well that is).

Fortunately, as I indicate in this post on India here, the global environment is likely to be very favourable. In addition Thailand's more recent and measured entry into the low fertility club (unlike, for example, Eastern Europe) means that she is capable (as Claus noted) to run quite rapid growth rates without hitting the solid wall of substantial wage inflation. So she has the wind behind her. Much more than she did in 1998. If we just briefly look at the chart for gross fixed capital formation for a moment.

Now it is very easy to see the massive distortion in investment which took place during the boom of the mid 1990s, how the correction was more or less inevitable, and how Thai Gross Fixed Capital Formation is now on a much lower and more sustainable level. So to some extent the "correction" worked. Also it should be noted that in the mid 1990s Thai median age was somewhere in the mid 20s (like Venezuela, or Ecuador right now, and these are hardly shining examples of political and economic stability). So Thailand was the victim of the Asian financial markets telling themselves the wrong story. Ideas and perpsectives do matter, since they serve to orient behaviour and expectations (those famous compasses and charts that Claus goes on about). Our apparent obsession with median ages isn't simply an obsession, and it isn't all rigmarole and obfuscation, it is part of a search for the "grail" of growth theory, then underlying mechanism.

Finally, just to illustrate what we are talking about, I present my habitual "exhibit A", Thailands population pyramids. These show the age structure transition which is taking place before our eyes clearly enough I think.

OK, that's it. Have a nice xmas everyone, and good luck Thailand, you will need it.

Bibliographic References

Here are some links to economic literature on the demographic dividend.

The Economics of Demographics, special issue of the IMF's Finance and Development Magazine, September 2006.

Especially Booms Busts and Echoes, by David E. Bloom and David Canning

Bloom, David E., and David Canning, 2004, "Global Demographic Change: Dimensions and Economic Significance," in Global Demographic Change: Economic Impacts and Policy Challenges, proceedings of a symposium, sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, August 26–28, pp. 9–56.

Lee, Ronald, 2003, "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, Vol. 17 (Fall), pp. 167–90.

National Research Council, 1986, Population Growth and Economic Development: Policy Questions (Washington: National Academies Press).

Bloom, David E., David Canning, and Bryan Graham, 2003, "Longevity and Life-Cycle Savings," Scandinavian Journal of Economics 105, pp. 319–38.

Bloom, David E., David Canning, and Pia Malaney, 2000, "Demographic Change and Economic Growth in Asia," Population and Development Review, 26, pp. 257–90

Bloom, David E., David Canning, and Jaypee Sevilla, 2002, The Demographic Dividend: A New Perspective on the Economic Consequences of Population Change (Santa Monica, California: RAND).

Bloom, David E., and Jeffrey G. Williamson, 1998, "Demographic Transitions and Economic Miracles in Emerging Asia," World Bank Economic Review, 12, pp. 419–56.

Mason, Andrew, 2001, Population Change and Economic Development in East Asia: Challenges Met, Opportunities Seized (California: Stanford University Press).

Mason, Andrew, 2005, Demographic Dividends: The Past, the Present, and the Future, Working Paper, Department of Economics, Population Studies Program, University of Hawaii at Manoa

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