Thursday, August 26, 2010

Daily Markets - Growing Concerned Once Again

Daily Markets - Growing Concerned Once Again

Growing Concerned Once Again

Posted: 26 Aug 2010 05:03 PM PDT

I’ve often made fun of the so-called smart money. Among other things, many of those who hold themselves out to be experts on financial matters failed to see the financial crisis coming and totally missed the boat when it came to predicting the severity of the subsequent downturn.
Nonetheless, it might be time for a reassessment.
For one thing, there are plenty of charlatans, lucky-breakers, and analytically depraved “strategists” running around Wall Street and other financial enclaves who give … [visit site to read more]

Why Boehner’s Blaming Bureaucrats

Posted: 26 Aug 2010 04:07 PM PDT

We're moving ever closer to a double-dip. Of course, as I've said before, most Americans never got out of the first one.
In previous postings I've suggested ways to reverse course, including a "people's tax cut" exempting the first $20K of income from payroll taxes and making up the revenue loss with a payroll tax on incomes over $250,000.
Yet Democrats seem frozen in the headlights of conservative supply-siders, blue-dog deficit hawks, and pollsters who say the public … [visit site to read more]

GOL Introduces New Destinations

Posted: 26 Aug 2010 03:35 PM PDT

Brazil's largest low-fare airline operator, GOL Linhas Aereas Inteligentes S.A. (NYSE:GOL) has introduced new flights to the city of Montes Claros , in the state of Minas Gerais.

Gol has been continuously increasing the frequency of flights to the existing high-demand markets and adding new routes. Recently, it also initiated a couple of flights from Brasilia to the Caribbean. This initiative stems from improving market conditions, which have also bolstered passenger traffic.

GOL recorded a … [visit site to read more]

Vale In Neutral Lane

Posted: 26 Aug 2010 03:05 PM PDT

We reiterate our Neutral recommendation on Vale S.A. (VALE). We are optimistic on the new iron-ore pricing system, the prime reason behind the excellent results during the second quarter of fiscal 2010 with EPADR of 70 cents surging ahead of 15 cents posted in the year-ago quarter.

Net operating revenues of $9,658.0 million also almost doubled from $4,948.0 million in the second quarter of 2009 and $6,604.0 million in the previous quarter.

However, we are concerned about the instability in … [visit site to read more]

Lexmark Initiates A Legal Battle

Posted: 26 Aug 2010 03:05 PM PDT

Leading printer manufacturer and printing solutions company, Lexmark International Inc. (NYSE:LXK), recently filed a patent infringement complaint with the U.S. International Trade Commission (ITC) against 24 companies. This legal battle is related to issues pertaining to manufacturing, importation and sale of replacement cartridges.

As per the latest complaint filed by the printing major, ITC has been requested to issue an order against these companies. The requested ban will be on the import … [visit site to read more]

Accenture Wins Outsourcing Deal

Posted: 26 Aug 2010 02:35 PM PDT

Technology services and outsourcing company Accenture Inc. (NYSE:ACN) announced that it has been awarded with a 3-year contract by Norwegian aluminum producer Norsk Hydro ASA. Financial details were not disclosed.

As per the terms of the contract, Accenture will provide technical support and maintenance services globally to two of Norsk Hydro's SAP systems. With these outsourced services, Norsk Hydro expects to maximize the efficiency and cost-effectiveness of its SAP systems, which will help … [visit site to read more]

Eaton Acquires Wright Line

Posted: 26 Aug 2010 02:35 PM PDT

Electrical equipment maker Eaton Corporation (NYSE:ETN) announced the completion of its acquisition of Wright Line Holding Inc. The company had agreed to acquire Worcester-based Wright Line on Aug 4, 2010.

Maker of information technology equipment, Wright Line's sales were roughly $101 million for the 12 months ended Jun 30, 2010. The company provides customized enclosures, rack systems, and air flow management systems to store, power, and secure mission-critical IT data center … [visit site to read more]

Rating Agencies Upgrade Unisys

Posted: 26 Aug 2010 02:35 PM PDT

Standard & Poor’s (S&P) Ratings Services recently upgraded its corporate credit rating on Unisys Corporation (NYSE:UIS) to B+ from B driven by improved operating performance.

The 'B' rating from S&P indicates that the financial situation of the company will vary noticeably and continues to be non-investment grade.

Nevertheless, S&P suggested that the company now has adequate liquidity and positive cash flows will help combat the decline in revenues.

Earlier, Moody’s … [visit site to read more]

Bob Evans Hikes Dividend

Posted: 26 Aug 2010 02:35 PM PDT

Bob Evans Farms Inc. (NASDAQ:BOBE), a full-service restaurant company that operates under the brands Bob Evans and Mimis Cafes, recently announced its decision to hike quarterly dividend by 2 cents to 20 cents. This translates to an 11.1% increase from the prior dividend of 18 cents. The increased dividend will be paid on Sep 21, 2010, to stockholders of record on Sep 7, 2010. This brings the new dividend yield to 3.1% from 2.8%. Bob

Evans further enhanced shareholder value by repurchasing 170,000 … [visit site to read more]

Analyst Interviews: Alternative Energy Stock Review

Posted: 26 Aug 2010 02:05 PM PDT

OUTLOOK

Like everyone else, the Alternative Energy industry was hit hard by the Great Recession and essentially remains in a recovery mode. And while stock prices of alternative energy companies have recovered from their lows, valuations still remain quite attractive by historical standards.

Overall industry fundamentals are expected to continue the improving trend into the second half of 2010 and beyond. Notwithstanding current concerns about the near-term the economic outlook, the improving … [visit site to read more]

Jabil Downgraded To Neutral

Posted: 26 Aug 2010 02:05 PM PDT

We are downgrading Jabil Circuit Inc. (JBL) to Neutral from our previous Outperform rating on negative investor sentiment, as the softer demand environment for electronic products could limit the stock's appreciation in the near term.
 
While key end markets remain strong, a slowdown in overall economic activity, particularly in Europe could limit growth. We remain cautious, given a probable downside risk to its near-term results and lower our price target to $11.00.
 
Moreover, … [visit site to read more]

First Horizon Reiterated At Neutral

Posted: 26 Aug 2010 02:05 PM PDT

We are reiterating our Neutral recommendation on First Horizon National Corporation (FHN) following the company's earnings release. The reaffirmation is based on the company's business model, strategic efforts, credit environment and regulatory issues.
 
Second Quarter Performance
 First Horizon turned to profitability in the second quarter of 2010 after reporting losses for eight quarters previously. The company reported a net income of $2.7 million or 1 cent per share, which … [visit site to read more]

Patterson Ahead By A Penny

Posted: 26 Aug 2010 01:35 PM PDT

Patterson Companies Inc. (PDCO), a leading distributor of dental, companion-pet veterinarian and rehabilitation medical supplies in the U.S. and Canada, reported first-quarter fiscal 2011 (ended July 31, 2010) results with earnings per share of 45 cents beating the Zacks Consensus Estimate by a penny while surpassing the year-ago earnings of 38 cents. Net income jumped 19.6% year-over-year to $53.9 million on the back of higher sales.
 
Revenues
 
Revenues climbed 7.6% … [visit site to read more]

Air Products To Back ArcelorMittal

Posted: 26 Aug 2010 01:35 PM PDT

Air Products and Chemicals Inc. (NYSE:APD) has won another contract from ArcelorMittal (NYSE:MT), to supply gases including oxygen, nitrogen and argon to the world's largest steel maker's Gent, Belgium steel facility. The Gent steel mill is operated under ArcelorMittal's Belgium Affiliate. Financial terms of the agreement were not disclosed.

Under the current agreement, Air Products will construct a third on-site air separation unit at the Gent site to support ArcelorMittal in meeting its … [visit site to read more]

Roper’s Rating Affirmed By Moody’s

Posted: 26 Aug 2010 01:35 PM PDT

Moody’s Investors Service, a subsidiary of Moody’s Corp. (NYSE:MCO) confirmed its senior unsecured rating of 'Baa3', a low-end investment grade rating and its senior subordinate debt as Ba1, a speculative grade rating for Roper Industries Inc. (ROP).
 
Roper provides energy systems, industrial technology and radio frequency products and solutions to the water, energy, radio frequency and research industries. The rating was reaffirmed on the basis of Roper's business diversification and … [visit site to read more]

Will GDP Growth Be Negative In 3Q?

Posted: 26 Aug 2010 01:05 PM PDT

Yesterday's double dose of bad economic news seriously raises the possibility that GDP growth in the third quarter will be negative. That does not mean a double dip for sure, since the general rule of thumb is that a recession is two back-to-back quarters of negative GDP, although the official definition by the National Bureau of Economic Research (NBER) is a bit more complex than that.

Also, the NBER, which is the official arbiter of these things, has not yet ruled on when the Great … [visit site to read more]

Raven Beats Estimates

Posted: 26 Aug 2010 01:05 PM PDT

Raven Industries Inc. (RAVN) delivered earnings per share (EPS) of 46 cents in its second quarter ended July 31, 2010, surpassing the Zacks Consensus Estimate of 39 cents and 34 cents in the year-ago period. Higher revenues due to a surge in demand in several of its end-markets, including energy, precision agriculture, and military surveillance, led to the outperformance.
 
Revenues increased 29% to $73 million, surpassing the Zacks Consensus of $65 million. All the segments posted … [visit site to read more]

Perry Ellis Loss Narrows, Lifts Outlook

Posted: 26 Aug 2010 01:05 PM PDT

Perry Ellis International Inc. (PERY) posted a narrower GAAP net loss of $2.0 million in the second quarter of fiscal 2011, compared to a net loss of $5.3 million in the year-ago period. Excluding special items, adjusted net loss per share came in at 11 cents better than the Zacks Consensus Estimate for a loss of 16 cents per share.
 
Perry Ellis is a designer, distributor and licensor of a broad line of men’s and women’s apparel, accessories, and fragrances. The company’s merchandise … [visit site to read more]

Neutral On Kansas City Southern

Posted: 26 Aug 2010 12:35 PM PDT

We initiate coverage for Kansas City Southern (NYSE:KSU) with a Neutral recommendation, which means the stock will perform mostly in line with the broader market. The company posted strong financial results for the second quarter 2010, beating the Zacks Consensus Estimate. Improvement in business volumes, effective cost control measures, and solid pricing environment are the primary reasons for this excellent result.
 
Kansas City Southern is a leading freight rail transportation … [visit site to read more]

URS Settles I-35W Bridge Litigation

Posted: 26 Aug 2010 12:35 PM PDT

URS Corporation (NYSE:URS) has entered into an agreement to settle the I-35W Bridge litigation. The company agreed to pay $52.4 million to resolve the last major lawsuit over I-35W Bridge Collapse.
 
The bridge, for which URS acted as a consultant, collapsed into the Mississippi River during the rush hour on August 1, 2007, killing 13 and injuring about 150. URS Corporation was charged of not noticing the warning signs in the bridge before it collapsed.
 
The settlement fully resolves … [visit site to read more]

Forex Trading: USDJPY Comes Down But Range Still Contained

Posted: 26 Aug 2010 12:19 PM PDT

Markets In Everything: Fantasy Sports Insurance

Posted: 26 Aug 2010 12:10 PM PDT

Now available for the 2010 NFL season - disability insurance for fantasy players. 

Featured last year on … [visit site to read more]

Cosan And Shell Join Forces

Posted: 26 Aug 2010 12:05 PM PDT

Cosan S.A. and Shell International Petroleum Company Limited signed a binding agreement to form a $12.00 billion joint venture for the production of ethanol, sugar and power, and the supply, distribution and retail of transportation fuels. Regulatory approvals are still awaited.
 
Brazil-based Cosan Limited (NYSE:CZZ) holds approximately 62.3% of the controlling share of Cosan S.A. Shell International Petroleum Company Limited is a leading energy and petrochemical player.
 
The joint … [visit site to read more]

Somaxon Strikes Deal With P&G

Posted: 26 Aug 2010 12:05 PM PDT

Somaxon Pharmaceuticals Inc. (NASDAQ:SOMX) shares received a major boost recently with the company entering into a co-promotional deal with Procter & Gamble (NYSE:PG) for its insomnia treatment Silenor. Somaxon shares were up 28.8% on the news. Silenor is approved for the treatment for insomnia characterized by difficulty with sleep maintenance.
 
Deal Terms
 
Per the terms of the deal, Silenor will be co-promoted in the US by a combined sales force of 215 sales reps. The companies … [visit site to read more]

Weekly Intermodal Rail Volume Sets 2010 Record

Posted: 26 Aug 2010 11:57 AM PDT

WASHINGTON, D.C. – Aug. 26, 2010 – “The Association of American Railroads (AAR) today reported rail intermodal volume on U.S. railroads for the week ending Aug. 21, 2010 set a new 2010 record for the second consecutive week, with 236,404 total trailers and containers (see top chart), up 22.4 percent from the same week in 2009 (see bottom chart), and up 2.6 percent compared with 2008. Weekly container volume, a subset of intermodal, was the highest on record, also for the second … [visit site to read more]
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