Monday, August 16, 2010

Daily Markets - How Times Have Changed

Daily Markets - How Times Have Changed

How Times Have Changed

Posted: 16 Aug 2010 04:45 PM PDT

Think how much times have changed.
Think about how strange it would have sounded to discuss a global financial crisis; the near collapse of the U.S. banking system; a government takeover of some of the world’s largest financial institutions and industrial companies; the prospective default of developed countries like Greece and states such as California and Illinois; the possible break-up of the European Union; and, trillions of dollars of borrowing by Washington and money-printing by the … [visit site to read more]

More On Total Trade Vs. Net Exports

Posted: 16 Aug 2010 03:37 PM PDT

I had a post last week about how trade gets reported: a) we treat exports as a positive contribution to the U.S. economy and imports as a negative contribution, and b) we never report the total amount of trade, but instead report the net difference between exports and imports, leading to analysis such as this from Vanguard:

“The economy continued to show signs of weakness in June as the U.S. trade deficit widened at an unprecedented pace.” 

Alternatively, it could be reported … [visit site to read more]

Aggressive Growth Stock: Stocks End 4-day Slide, Barely

Posted: 16 Aug 2010 03:05 PM PDT

Market Update:
The four day slide is technically over, but today was far from encouraging. Stocks were mixed with the Dow falling 1 point, the S&P gaining a fraction of a point and the Nasdaq rose 8 points.
Japan is the latest country to report a slowing recovery, with their GDP coming in at a pedestrian 0.1% increase. The country was overtaken by China as the second largest economy in the world.
We got some disappointing news out of New York this morning. Manufacturers saw sales and orders … [visit site to read more]

Earnings Scorecard: Magna International Inc.

Posted: 16 Aug 2010 03:05 PM PDT

Magna International Inc. (NYSE:MGA) reported its second-quarter results for the year on August 6, 2010, outperforming the Zacks Consensus Estimate by a significant margin of $1.27 per share. The share price was stable and hovered around the pre-earnings level, albeit higher than 2009.
Analysts were optimistic given the company’s impressive results and better outlook as almost every one of them revised the estimates upward. Below we will cover the results of the recent earnings announcement, … [visit site to read more]

Risk Trends Level Off But Crude Continues Lower As Growth Numbers Cool

Posted: 16 Aug 2010 02:51 PM PDT

North American Commodity Update
Commodities - Energy
A Clear Channel will Pit Fundamental Conviction against Technical Opportunity for Crude Traders
Crude Oil (LS Nymex) - $75.24 // -$0.15 // -0.20%
Putting in for its fifth consecutive daily decline, crude has matched the performance of its late-June / early-July bear swing and simultaneously confirmed the influence of a near three-month rising trend channel. While the bear trend that was extended into the start of this week has confirmed the … [visit site to read more]

Pressure BioSciences Offers Unique Technology

Posted: 16 Aug 2010 02:05 PM PDT

Pressure BioSciences Inc. (NASDAQ:PBIO) is a life sciences company engaged in the research, development and commercialization of a novel, enabling platform technology called pressure cycling technology (PCT).
The company's technology platform is based on high hydrostatic pressure technology, a Nobel Prize winning technology. Percy Bridgman from Harvard University won the 1946 Nobel Prize for his innovative work on the physics of substances under high hydrostatic pressure. Based on Percy's … [visit site to read more]

Ford Calls Back Employees

Posted: 16 Aug 2010 02:05 PM PDT

Ford Motor Co. (NYSE:F) and UAW have recently teamed up to bring back nearly 2,000 people to the motor manufacturer’s factories. The company thus manages to retain its former employees, who would else have migrated to parts supply companies, both within and outside the U.S.
Ford claims to have already reinstated 1,340 employees into 24 of its plants and plans to add 635 more by 2012, thereby fulfilling its target of 1,975. Alongside, the company has also revised its factory-level contracts to … [visit site to read more]

Earnings Preview: Deere & Co.

Posted: 16 Aug 2010 01:35 PM PDT

Deere & Co. (NYSE:DE) is slated to release its third-quarter 2010 results on Wednesday, August 18, 2010. The current Zacks Consensus Estimate for the second quarter is $1.22, representing annualized growth of 23.18%.
In the previous quarter, Deere delivered an earnings surprise of 44.9%, maintaining its trend of outperforming the Zacks Consensus Estimate in the past three quarters. The four-quarter average earnings surprise came to a whopping 169.66%.
Fiscal Second Quarter Performance
Deere … [visit site to read more]

Whirlpool Spends $0.2M For Lobbying (Revised)

Posted: 16 Aug 2010 01:35 PM PDT

Whirlpool Corporation’s (NYSE:WHR) lobbying expenses amounted to $200,000 in the second quarter ended June 30, 2010. Though expenses reduced from $280,000 in the previous quarter, it increased by about $40,000 over the same quarter last year.
The amount was spent for lobbying the federal government mainly on appliance energy tax credits, energy standards, tariffs on microwaves and laundry work surfaces, pension funding as well as issues related to trading with Korea.
The recent global recession … [visit site to read more]

Rambus, NVIDIA Make A Deal

Posted: 16 Aug 2010 01:05 PM PDT

Technology licensing company Rambus Inc. (NASDAQ:RMBS) announced that it had inked a patent licensing deal with the leading graphics chip company, NVIDIA Corp. (NASDAQ:NVDA). As per the deal, NVIDIA will pay a royalty to Rambus for certain memory controller patents. 
Despite a long-standing legal battle between the two companies related to patent infringements, the deal indicates a situation in favor of Rambus.
 
In July 2008, Rambus filed a suit in the U.S. District Court alleging that NVIDIA … [visit site to read more]

Dell To Acquire 3PAR For $1.15B

Posted: 16 Aug 2010 01:05 PM PDT

Dell Inc. (NASDAQ:DELL) signed a definitive agreement to acquire enterprise storage products manufacturer 3PAR Inc. (PAR). The deal has been valued at $1.15 billion.

Under the terms of agreement, Dell will pay $18 for each outstanding common share of 3PAR in cash, an 86.5% premium to the price end of trading on Friday. 3PAR's share price has shot up since and is currently near the offer price. 
The terms of the agreement were approved by the Board of Directors of both companies. Dell … [visit site to read more]

Fannie, Freddie Summit Preview

Posted: 16 Aug 2010 01:03 PM PDT

In June 2009 I highlighted the expectation of massive losses within Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) in writing Uncle Sam's Dirtly Little Secret. Fourteen months and hundreds of billions of dollars in losses later, America awaits to see how our 'wizards in Washington' will look to deal with these housing 'wards of the state'. Tomorrow the Obama administrtion hosts the "Conference on the Future of Housing Finance."
In anticipation of this conference, this past … [visit site to read more]

America’s Busiest Airports

Posted: 16 Aug 2010 12:54 PM PDT

Top 10 U.S. Airports, ranked by May 2010 Domestic Scheduled Enplanements, according to the Bureau of Transportation Statistics.

What is the busiest airport in the U.S. for domestic flights?  Hint: It’s not even close, the #1 airport has 42.5% more traffic than the #2 airport.  Notice also that 8 out of the 10 busiest airports are in the South, and 7 out of 10 are in Right-to-work … [visit site to read more]

Forex Trading: GBPUSD Keeping Key Levels In Play As It Pauses Before For The Next Move

Posted: 16 Aug 2010 12:53 PM PDT

Nelnet Offers $55M To Settle Case

Posted: 16 Aug 2010 12:45 PM PDT

Nelnet Inc. (NYSE:NNI) agreed to pay $55 million as part of its efforts to settle a lawsuit filed by Jon H. Oberg, the former Department of Education researcher, on behalf of the federal government. It was alleged the company, along with some other organizations such as SLM Corporation (NYSE:SLM), of receiving improper subsidies from the government.
 
Nelnet would pay this amount with its existing cash and this would be reflected in the company's third quarter 2010 results. While Nelnet … [visit site to read more]

Simcere Pharma Tops Zacks Estimates

Posted: 16 Aug 2010 12:37 PM PDT

Simcere Pharmaceutical Group (NYSE:SCR) posted second-quarter 2010 earnings of 10 cents per American Depository Share (ADS), beating the Zacks Consensus Estimate by 3 cents and the prior-year earnings by a penny.
 
Quarterly Details
 
Quarterly revenues increased 28.3% year over year to $80.3 million, also beating the Zacks Consensus Estimate at $70 million. Improved revenues resulted from an increase in sales of products, which include Bicun and Yidasheng (up 5.6% to $28.5 million), … [visit site to read more]

Deutsche Bank Aligns With Craigs

Posted: 16 Aug 2010 12:37 PM PDT

On Wednesday, Deutsche Bank AG (NYSE:DB) and Craigs Investment Partners Limited of New Zealand announced the completion of their strategic alliance. As per the terms of the alliance, Deutsche Bank would hold a 49.9% equity interest in Craigs, while the remaining 50.1% will be held by the existing shareholders of Craigs Investment.
 
When the agreement was first announced in March 2010, it was accepted that Deutsche Bank’s global institutional equities platform and Craigs Investment’s New … [visit site to read more]

Biovail Beats In Q2

Posted: 16 Aug 2010 12:37 PM PDT

Biovail Corporation's (NYSE:BVF) reported earnings of 34 cents per share (excluding special items) for its second quarter 2010 earnings, comfortably surpassed the Zacks Consensus Estimate of 26 cents per share. The company also earned 34 cents in the year-ago quarter.
 
On a reported basis (including special items) Biovail earned 21 cents per share in the reported quarter, against 15 cents a year ago. The increase in earnings was attributed to higher revenues driven by the impressive … [visit site to read more]

Cell Therapeutics’ Q2 Net Loss Widens

Posted: 16 Aug 2010 12:37 PM PDT

Cell Therapeutics (CTIC) announced a second quarter 2010 net loss that increased to $53.6 million or 8 cents per share from a loss of $27.4 million or 6 cents per share last year. The wider loss in the reported quarter was due primarily to the presence of non-cash expenses, which included $30.2 million in deemed dividends on preferred stock and $7.6 million in stock-based compensation.
 
Excluding deemed dividends on preferred stock but including stock based compensation, loss … [visit site to read more]

DeVry Tops Consensus

Posted: 16 Aug 2010 12:37 PM PDT

DeVry Inc. (NYSE:DV) registered fourth-quarter 2010 earnings of 99 cents per share, exceeding the Zacks Consensus Estimate of 82 cents by 20.7% and the year-ago earnings of 51 cents by 94.1%.
The upbeat results came in the wake of successful implementations of growth and diversification strategies, improvement in academic quality and successful student enrollments.
For fiscal 2010, earnings shot up by 69.7% to $3.87 per share, compared with $2.28 in the year-ago quarter. The improvement followed … [visit site to read more]

Vulcan Downgraded By Moody’s

Posted: 16 Aug 2010 12:37 PM PDT

Vulcan Materials Company (NYSE:VMC) has undergone a rating cut by Moody’s Investors Service, a subsidiary of Moody’s Corp. (NYSE:MCO).
The company’s senior unsecured rating has been lowered to “Baa3″ from “Baa2″, whereas its commercial paper rating has been reduced to “Prime-3″ from “Prime-2″. Moody's has also maintained a “negative” outlook on the company.
According to Moody’s, Vulcan’s weaker volumes and intensified pricing competition in the Southeast and West of the U.S., particularly for … [visit site to read more]

Superior Industries Exceeds Estimates

Posted: 16 Aug 2010 12:37 PM PDT

Superior Industries International, Inc. (NYSE:SUP) posted income of $14.2 million or 53 cents per share (excluding the loss on sale of the company’s joint venture in Hungary) in the second quarter of 2010, compared with a loss of $21 million or 79 cents per share in the year-ago quarter. The profit, led by an increase in unit shipments, far exceeded the Zacks Consensus Estimate of 21 cents per share.
Consolidated sales more than doubled to $194.6 million from $80.9 million a year ago, driven by a … [visit site to read more]

Advance Auto Parts Outpaces Estimates

Posted: 16 Aug 2010 12:37 PM PDT

Advance Auto Parts Inc. (NYSE:AAP) showed an increase in profit to $100.9 million or $1.16 per share in the second quarter of 2010, ended July 17, 2010. That compares with $80.3 million or 83 cents in the year-ago quarter. The automotive retailer outpaced the Zacks Consensus Estimate of $1.02 per share.
The improvement was attributed to the company’s aggressive store expansion strategy, enabling better availability of parts to its customers and fueling a higher comparable store sales gain.
Sales … [visit site to read more]

Halliburton’s Endeavour In Poland

Posted: 16 Aug 2010 12:36 PM PDT

One of the largest oilfield service providers Halliburton Company (NYSE:HAL) executed the first ever shale hydraulic fracturing operation in Poland. The company performed this operation for PGNiG, the state-owned Polish oil and gas company.
Halliburton was contracted by PGNiG to fracture the Markowola-1 exploratory well, located near Kozienice, Lublin province. This was done to verify whether the site holds commercial gas deposits reserves or not.
European countries have been struggling to cope … [visit site to read more]

RBI Approves ICICI Bank-BoR Merger

Posted: 16 Aug 2010 12:36 PM PDT

On Thursday, ICICI Bank Limited (NYSE:IBN) received approval from the Reserve Bank of India (”RBI”) to acquire Bank of Rajasthan (”BoR”). RBI said that the merger was allowed in accordance with the Sub-section (4) of Section 44A of the Banking Regulation Act, 1949.
With the integration of BoR, the total number of ICICI Bank branches will increase 25% to around 2,500 across the country. All branches of BoR will start functioning as branches of ICICI Bank effective August 13. The acquisition will … [visit site to read more]

J.C. Penney Beats, Outlook Disappoints

Posted: 16 Aug 2010 12:36 PM PDT

J.C. Penney Company Inc. (NYSE:JCP) recently delivered second-quarter 2010 results that came a penny ahead of the Zacks Consensus Estimate on the heels of effective cost management.
The quarterly earnings of 6 cents per share beat the Zacks Consensus Estimate of 5 cents, and rose sharply from break-even posted in the prior-year quarter. The quarterly earnings included a 5-cent charge related to a debt tender offer completed in May 2010.
The Plano, Texas-based retailer now expects third-quarter … [visit site to read more]

Bear Of The Day: McAfee Inc.

Posted: 16 Aug 2010 12:36 PM PDT

McAfee Inc. (NYSE:MFE) is one of the leading players in the information technology security industry.
The company delivered decent second-quarter results, although revenue was below our expectation. The strong product portfolio, acquisitions, customer win momentum and decent cash generation ability are positives.
On the other hand, we are a bit concerned about the intense competition that the company faces from small and large players, in the networking, consumer and OEM business, as well as from … [visit site to read more]

Momentum Stock: Monro Muffler Brake, Inc.

Posted: 16 Aug 2010 12:36 PM PDT

Monro Muffler Brake, Inc. (NASDAQ:MNRO) recently jumped to a new multi-year high after reporting better than expected Q2 results on July 22 that included a 5% earnings surprise for this Zacks #2 rank stock.
Second-Quarter Results
Revenue for the period was up 24% from last year to $158 million, with same-store sales up a very solid 5.1%. Earnings also came in strong at 61 cents, 3 cents ahead of the Zacks Consensus Estimate, moving the company’s average earnings surprise over the last four quarters … [visit site to read more]

Aggressive Growth Stock: Rockwood Holdings

Posted: 16 Aug 2010 12:36 PM PDT

Rockwood Holdings, Inc. (NYSE:ROC) has posted another earnings surprise since being featured as a Zacks Rank Buy. The company’s earnings outlook as made a huge comeback from its lows during the recession.
Company Description
Rockwood Holdings is a specialty and advanced materials maker. The company operates on a global scale and focuses on niche markets in the specialty chemicals, pigments and additives and advanced materials segments.
Solid Results
On Jul 27 Rockwood posted earnings per share of … [visit site to read more]

Bull Of The Day: Eastman Chemical

Posted: 16 Aug 2010 12:36 PM PDT

Eastman Chemical’s (NYSE:EMN) diversified chemical portfolio is driving earnings. The company benefits from business restructuring and cost-cutting measures. The Performance Chemicals business continues to outperform with an enhanced product mix achieved from the Genovique Specialty acquisition. Strong Specialty margins look increasingly credible.
diversified chemical portfolio is driving earnings. The company benefits from business restructuring and cost-cutting measures. The Performance … [visit site to read more]

Growth & Income Stock: IGate Corp

Posted: 16 Aug 2010 12:36 PM PDT

iGate Corporation (NASDAQ:IGTE) is expected to generate strong double-digit earnings growth for the next few years, but its stock still trades at a reasonable price.
Growth and Income
The company is expected to grow its earnings per share 67% in 2010, 13% in 2011, and 20% over the long term. The stock also offers investors a dividend yield of 0.7%.
This Zacks #1 Rank stock trades at 18x 2010 consensus EPS estimates and 16x 2011 consensus EPS estimates.
Business
The company provides offshore … [visit site to read more]

U.S. Bank Failures Stretch To 110

Posted: 16 Aug 2010 12:36 PM PDT

U.S. regulators on Friday shuttered Palos Heights, Illinois-based Palos Bank and Trust Company, pushing up U.S. bank failures to 110 so far in 2010. This compares with 140 bank failures in 2009, 25 in 2008 and only 3 in 2007.
Although the economy is showing signs of a gradual recovery with the stabilization of large financial institutions, small banks continue to be impacted by tumbling home prices, soaring loan defaults and a high unemployment rate.
 
While we expect the overall economic … [visit site to read more]

Earnings Preview: Target Corporation

Posted: 16 Aug 2010 12:36 PM PDT

Target Corporation (NYSE:TGT), the operator of general merchandise and food discount stores in the United States, is scheduled to report its second quarter 2010 financial results on Wednesday, August 18, 2010. The current Zacks Consensus Estimate for the quarter is 92 cents per share.
First Quarter 2010, a Synopsis
Target posted stronger-than-expected first quarter 2010 results thanks to a better sales environment, effective inventory management and cost containment efforts.
The … [visit site to read more]

Stock Market News Briefs: Agrium, Bank Of America, BlackRock, Hewlett-Packard Company, Lowe’s Companies, Dell

Posted: 16 Aug 2010 12:36 PM PDT

 Dell (NASDAQ:DELL) said it will buy Fremont, California-based storage company 3Par (PAR) in an all-cash deal valued at $18 per share, representing an 86% premium over its Friday close

 Lowe’s (NYSE:LOW) reported second-quarter earnings of $0.58 per share, on revenues of $14.4 billion, vs. consensus estimates of $0.59 and revenue of $14.52 billion. Same-store sales rose 1.6% during the quarter. For full fiscal-year 2010, the company sees earnings of $1.38 to $1.45 a share

 Mining … [visit site to read more]

Turkcell Misses

Posted: 16 Aug 2010 12:36 PM PDT

Turkcell (NYSE:TKC) reported earnings per share from continuing operations of 31 cents for the second quarter of 2010, below the Zacks Consensus Estimate of 36 cents. Total revenue grew by 1.7% to TRY2,241.2 million ($1,468 million) due to robust contributions from acquisitions.
An improving subscriber mix in favor of the higher margin postpaid segment along with implementing the TRY-based pricing has offset the impact of the sharp reduction in Mobile Termination Rates and regulation-driven … [visit site to read more]

Blackstone To Acquire Dynegy

Posted: 16 Aug 2010 12:36 PM PDT

On Friday, Blackstone Group (NYSE:BX) announced that it will acquire Houston-based energy company Dynegy Inc. (NYSE:DYN) for $4.7 billion (including debt).
 
Under the deal, Blackstone will pay $4.50 per share (a 62% premium on the closing price of $2.78 on August 12) in cash for about 120.6 million outstanding shares of Dynegy. In addition, Dynegy will get a 40-day period to solicit better bids for its shareholders. This is expected to be an unusual buyout where Blackstone will be spared from … [visit site to read more]

UTX Powers US Military Satellite

Posted: 16 Aug 2010 12:36 PM PDT

With the help of Pratt & Whitney Rocketdyne, a unit of United Technologies Corporation (NYSE:UTX), the US military has successfully launched its first Advanced Extremely High Frequency military communications satellite into orbit. The satellite was launched by a United Launch Alliance Atlas V rocket from the Cape Canaveral Air Force Station, Florida.
The Atlas V rocket works on a RL10 upper-stage engine of Pratt & Whitney and on a RD-180 booster engine from RD AMROSS LCC, a joint … [visit site to read more]

Sprint Unveils Epic 4G

Posted: 16 Aug 2010 12:36 PM PDT

Sprint Nextel (NYSE:S) is expected to roll out its second 4G smartphone "Epic 4G" on August 31, 2010 across all of Sprint's nationwide retail locations, as well as from its retail partners RadioShack Corp. (NYSE:RSH), Best Buy Co. Inc. (NYSE:BBY) and Wal-Mart Stores Inc. (NYSE:WMT).
The Epic 4G will cost around $249.99 with a two-year service agreement and $100 mail-in rebate. The price of Epic 4G exceeds the cost of the first 4G handset 'HTC EVO 4G" on account of a bigger display, a slider … [visit site to read more]

Lowe’s Misses Zacks Estimate

Posted: 16 Aug 2010 12:36 PM PDT

Lowe's Companies, Inc. (NYSE:LOW) recently posted lower-than-expected second-quarter 2010 results. Quarterly earnings of 58 cents per share missed the Zacks Consensus Estimate by a penny but rose 13.7% from 51 cents in the prior-year quarter.
The growth in the top-line and cost containment effort aided bottom-line growth. Lowe's said that it now expects third-quarter 2010 earnings in the range of 28 cents to 32 cents per share, and fiscal year 2010 earnings between $1.38 and $1.45 … [visit site to read more]

O’Charley’s 2Q Disappoints

Posted: 16 Aug 2010 12:36 PM PDT

Casual dining chain O’Charley's Inc. (NASDAQ:CHUX) recently reported disappointing second quarter 2010 results. General economic conditions and lower traffic largely affected results in the quarter.
The quarterly loss of 12 cents per share was wider than the Zacks Consensus Estimate of a loss of 4 cents and was down substantially from earnings of 13 cents delivered in the prior-year quarter.
O’Charley's said that total revenue in the second quarter tumbled 6.0% year over year to $194.1 … [visit site to read more]

CEMIG Disappoints, Misses Estimate

Posted: 16 Aug 2010 12:36 PM PDT

Companhia Energetica de Minas Gerais (NYSE:CIG), known as CEMIG, reported second quarter 2010 earnings per share of R$0.77 (US$0.43 per ADR), compared with R$0.88 (US$0.42 per ADR) in the second quarter of 2009. Earnings per ADR lagged the Zacks Consensus Estimate of US$0.47 per ADR.
Adjusted net income dipped 13.0% year over year to R$477 million (US$265 million), compared with R$547 million (US$261.7 million). The year-over-year decline was primarily due to higher operating expenses and … [visit site to read more]

Ark Restaurants Surpasses Estimates

Posted: 16 Aug 2010 12:36 PM PDT

Ark Restaurants Corp. (NASDAQ:ARKR) reported third quarter 2010 earnings of 83 cents per share, which topped the Zacks Consensus Estimate of 67 cents and soared 80% from 46 cents a year earlier. The better-than-expected results were driven by double-digit growth in the top line, resulting from improving same store sales.
Ark Restaurants said that total revenue in the third quarter spiked 13.2% year over year to $35.2 million, as company-wide same-store sales rose 9.0% year over year.
The … [visit site to read more]

Fidelity In Deal With Bradesco

Posted: 16 Aug 2010 12:36 PM PDT

Electronic payment processor, Fidelity National Information Services Inc. (NYSE:FIS) announced the signing of a deal or a memorandum of understanding (MOU) with Banco Bradesco (NYSE:BBD), a Brazilian card processing bank.
Under the 10-year deal, Fidelity Processadora e Servicos S.A (FPS), Fidelity's Brazil-based card processing services company, will provide card processing, call center, collection and back-office services for Banco Bradesco's private label and bank card portfolios. Financial … [visit site to read more]

Lower Q2 Loss At Marina

Posted: 16 Aug 2010 12:36 PM PDT

Marina Biotech, Inc.'s (MRNAD) second quarter 2010 loss of 34 cents per share was narrower than the year-ago loss of 84 cents. However, after excluding special items, the loss in the reported quarter narrowed to 53 cents from the year-ago loss of 72 cents. The Zacks Consensus Estimate for the quarter was a loss of 43 cents. The lower amount spent on research and development (R&D) in the quarter primarily led to the narrower loss.
The company, which has no marketed product, is highly … [visit site to read more]

Arris Secured Big Edge-QAM Contract

Posted: 16 Aug 2010 12:36 PM PDT

Recently, Arris Group Inc. (NYSE:TWC), as reported by LightReading. According to the source, Arris will supply the bulk (around 60%) of total edge-QAMs to Time Warner Cable. The contract size is likely to be more than $25 million through the end of 2011. 

According to our view, this contract is crucial for Arris, since the company just reported disappointing second quarter 2010 financial results. Comcast Corp. (NASDAQ:CMCSA), the largest customer of Arris is on the verge of full deployment of … [visit site to read more]

Earnings Scorecard: Health Care REIT

Posted: 16 Aug 2010 12:36 PM PDT

Health Care REIT Inc. (NYSE:HCN), a real estate investment trust (REIT) that operates senior housing and health care real estate, reported fiscal 2010 second quarter recurring funds from operations (FFO) of 80 cents per share, which marginally exceeded the Zacks Consensus Estimate by a penny. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Below we cover the results of … [visit site to read more]

Televisa-Nextel Bid Postponed

Posted: 16 Aug 2010 12:36 PM PDT

Recently Mexico's wireless regulator Comision Federal de Telecomunicaciones (CoFeTel) postponed a vote on whether it will allow Grupo Televisa S.A. (NYSE:TV) to enter into a mobile phone segment. Televisa, together with its partner Nextel, is the sole bidder for a 30 MHz nationwide block in the 1.7 GHz band of frequency. In last July, Televisa and Nextel together won one block of frequency ranging from 1850 MHz – 1990 MHz.
 
In February 2010, Televisa signed an agreement with NII Holdings … [visit site to read more]

Earnings Scorecard: Ameren Corporation

Posted: 16 Aug 2010 12:35 PM PDT

Ameren Corporation (NYSE:AEE) reported second quarter 2010 earnings of 73 cents per share, sweeping past the Zacks Consensus Estimate of 50 cents on strong electricity sales and disciplined cost management. Earnings, however, were 2 cents short of last year’s 75 cents.
Analysts have had more than a week to digest the news. Below, we cover the earnings announcement, subsequent analyst estimate revisions and the Zacks ratings for both the short-term and the long-term outlook for the … [visit site to read more]

Integra Adds IPASSAGE Retractor

Posted: 16 Aug 2010 12:35 PM PDT

Recently, Integra Lifesciences Holdings Corporation (NASDAQ:IART) added a tissue sparing retraction system, iPASSAGE Retractor for Minimally Invasive Surgery of the lumbar spine. The iPASSAGE system allows the surgeon to make smaller cuts, thereby reducing the time of recovery, tissue damage and blood loss.
 
Integra distributes the iPASSAGE Retractor system through Integra Spine, a part of the Orthopedics segment. The company's spine and orthobiologics product portfolio includes spinal … [visit site to read more]

Earnings Scorecard: Vornado Realty Trust

Posted: 16 Aug 2010 12:35 PM PDT

Vornado Realty Trust (NYSE:VNO), a leading real estate investment trust (REIT), reported recurring funds from operations (FFO) of $1.18 per share for the fiscal 2010 second quarter, which exceeded the Zacks Consensus Estimate by 12 cents. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Below we cover the results of the recent earnings announcement, as well as the … [visit site to read more]

Stanley Black & Decker Upgraded To Outperform

Posted: 16 Aug 2010 12:35 PM PDT

We recently upgraded our recommendation for Stanley Black & Decker (NYSE:SWK) from Neutral to Outperform.
Second Quarter Highlights
Earnings per share (EPS) from continuing operations for the manufacturer of tools and engineered security solutions were $1.24 in the second quarter of 2010, up 39.3% compared with 89 cents in the comparable quarter of 2009. EPS surpassed the Zacks Consensus Estimate of 77 cents.
 
Net income from continuing operations soared 191.1% year over year to $206.1 … [visit site to read more]

General Dynamics Wins $35.5M Contract

Posted: 16 Aug 2010 12:35 PM PDT

Aerospace and defense company General Dynamics Corporation (NYSE:GD) announced that its General Dynamics Land Systems-Canada unit has been awarded a $35.5 million contract to produce 24 Light Armored Vehicles (LAV-A2) in various configurations for the United States Marine Corps.
The eight-wheeled amphibious vehicle, LAV-A2, is equipped with enhanced armor protection and an automatic fire-suppression system for crew protection, along with a robust suspension for mobility. Marine Air-Ground … [visit site to read more]

Earnings Scorecard: Baker Hughes

Posted: 16 Aug 2010 12:35 PM PDT

Since the second quarter earnings announcement, Baker Hughes Inc. (NYSE:BHI) shares have been experiencing a downtrend. We believe that the main reasons behind this negative trend are weakness in GoM activity levels, issues related with geographic reorganizations and the integration of BJ Services operations.
In the second quarter, Baker Hughes acquired 100% of the outstanding common stock of BJ Services Company in a cash and stock transaction. The company is dynamic in plugging holes in its … [visit site to read more]

Emergency Medical Stays Neutral

Posted: 16 Aug 2010 12:35 PM PDT

We recently reiterated our Neutral recommendation on Emergency Medical Services Corporation (NYSE:EMS) with a target price of $51.0.
The company functions through two operating subsidiaries – EmCare Holdings (EmCare), its outsourced hospital-based physician services segment, and American Medical Response (AMR), its healthcare transportation services segment. These two segments accounted for approximately 51% and 49%, respectively, of total revenues during the second quarter of fiscal … [visit site to read more]

Good News For Cell Therapeutics

Posted: 16 Aug 2010 12:35 PM PDT

Cell Therapeutics Inc. (CTIC) received a boost when the European Medicines Agency (EMEA) validated the expanded Pediatric Investigation Plan (PIP) filed by the company in July this year for its lead candidate pixantrone. The candidate is being developed for the treatment of relapsed or refractory, aggressive non-Hodgkin’s lymphoma (NHL) in patients who have not responded to other treatment options. The PIP provides the outline of the process that the company intends to follow to study … [visit site to read more]

Noble Energy Closes Sale

Posted: 16 Aug 2010 12:35 PM PDT

Noble Energy Inc. (NYSE:NBL) sold certain non-core Mid-Continent and Illinois basin assets for $552 million to an affiliate of Citation Oil & Gas.
The assets represented approximately 5.7 thousand barrels of oil equivalent per day (Mboe/d) of production and 29 million barrels of oil equivalent (MMboe) of reserves.
Due to the asset sale, Noble Energy expects volume to reduce by over 2 Mboe/d, resulting in a volume of 211–217 Mboe/d for full year 2010. For the third quarter of 2010, Nobel … [visit site to read more]

Agrium Eyes AWB

Posted: 16 Aug 2010 12:35 PM PDT

In an attempt to strengthen its retail business, fertilizer company Agrium Inc. (NYSE:AGU) made an unsolicited offer to acquire AWB Limited for A$1.238-billion (US $1.19 billion). AWB Limited is Australia’s largest agribusiness and one of the world’s largest wheat marketing and management companies. Shares of both the companies surged after the announcement of the proposed merger.
Meanwhile, another Australian grain maker, GrainCorp Limited, has already been pursuing AWB. GrainCorp made … [visit site to read more]

Earnings Scorecard: PPL Corp.

Posted: 16 Aug 2010 12:35 PM PDT

Following PPL Corporation's (NYSE:PPL) second quarter earnings miss on August 5, 2010, analysts' sentiments on the company's future earnings remain mixed. Positives in the quarter included encouraging results at the company's Supply segment and the expected synergies from the pending E.ON acquisition. However, based on the financing-related dilution in late June, the company lowered its 2010 operating earnings guidance to $2.70-$3.05 per share. These factors have shaped analysts' mixed … [visit site to read more]

Pioneer Remains Neutral

Posted: 16 Aug 2010 12:35 PM PDT

We retain our Neutral recommendation for Pioneer Natural Resources Company (NYSE:PXD). 
 
The Irving, Texas-based company recently reported better-than-expected second quarter 2010 financial results, owing to its growth in Spraberry field, Eagle Ford Shale and Alaska. Second-quarter earnings were 43 cents per share, beating the Zacks Consensus Estimate of 42 cents and the year-earlier quarter's loss of 10 cents.
 
Total production for the quarter fell short by 1.6% on a … [visit site to read more]

Redpoint Bio A Call Option

Posted: 16 Aug 2010 12:35 PM PDT

Second Quarter Results
On August 13, 2010, Redpoint Bio (RPBC) reported financial results for the second quarter ended June 30, 2010. Total revenues for the second quarter were $0.5 million, which related to the upfront licensing payment from International Flavors & Fragrances Inc. (IFF) for Redpoint's sweetness enhancer, RP44. Below we highlight the terms of the deal between Redpoint and IFF.
Net loss of the second quarter totaled $1.4 million, or 2 cents per share. This was in-line … [visit site to read more]

American Medical Remains Neutral

Posted: 16 Aug 2010 12:35 PM PDT

We reiterate our Neutral recommendation on leading pelvic-health devices maker American Medical Systems (NASDAQ:AMMD). Earnings for second-quarter fiscal 2010 beat the Zacks Consensus Estimate by a penny while profit soared 22% year-over-year on account of higher sales that spiked roughly 8% in the quarter. However, sales narrowly missed the Zacks Consensus Estimate. 
 
American Medical's Men's Health segment posted 7.7% year-over-year revenue growth, boosted by higher demand for … [visit site to read more]

Isis Loss Widens

Posted: 16 Aug 2010 12:35 PM PDT

Isis Pharmaceuticals Inc. (NASDAQ:ISIS) reported a net loss of 25 cents per share in the second quarter, wider than the Zacks Consensus Estimate for a net loss of 15 cents and the year ago loss of 3 cents. The higher loss was mainly due to lower revenues and higher operating expenses. Following the adoption of a new required accounting standard, Isis is no longer including Regulus Therapeutics’ financial results.
Quarter in Details
 
Second quarter revenues, which include license fees, … [visit site to read more]

Lockheed Martin Wins Contract

Posted: 16 Aug 2010 12:35 PM PDT

The U.S. Army awarded a contract worth $309 million to defense contractor Lockheed Martin Corporation (NYSE:LMT) for work on the Army and Marine Corps’ Javelin antitank missile program.
 
The contract has been received from the U.S. Aviation and Missile Command in Redstone Arsenal, Alabama under the fiscal 2009 Javelin hardware production requirement.
 
Lockheed Martin will perform the work in Tucson, Arizona and in Orlando, Florida with completion expected by October 30, … [visit site to read more]

Cypress Bioscience Loss Narrows

Posted: 16 Aug 2010 12:35 PM PDT

Cypress Bioscience, Inc. (NASDAQ:CYPB) reported a net loss of 5 cents per share in the second quarter, six cents narrower than the Zacks Consensus Estimate and well below the year ago loss of 23 cents, mainly due to higher revenues and a significant decline in operating expenses.
Quarter in Detail
Second-quarter revenues came in at $9.1 million, in line with the Zacks Consensus Estimate and 56.9% above the year-ago revenues of $5.8 million. Second quarter revenues consisted of $8.1 … [visit site to read more]

Omnicare Hikes Dividend

Posted: 16 Aug 2010 12:35 PM PDT

Leading pharmaceutical care provider Omnicare Inc (NYSE:OCR) increased its quarterly dividend by a penny to 3.25 cents per share, representing a roughly 44% growth over the earlier quarterly rate of 2.25 cents. This raises the annual dividend to 13 cents per share from the current payout of 9 cents. The revised quarterly dividend is payable on Sep 15, 2010 to shareholders of record as of Aug 31, 2010.     
 
The dividend increase represents good news for investors, … [visit site to read more]

LAN & TAM Agree To Merge

Posted: 16 Aug 2010 12:35 PM PDT

Latin American airline operators, LAN Airlines S.A. (NYSE:LFL) and TAM S.A. (NYSE:TAM) have signed a MoU to merge operations and form a new company called LATAM Airlines Group S.A. (LATAM). LAN will become the parent company with a 73% stake in TAM and the shareholders of TAM will receive 0.9 shares of LATAM for each share of TAM. It will be an all-stock transaction of approximately $2.7 billion. However, the merger is awaiting various regulatory approvals.

On combination, LATAM will become the … [visit site to read more]

A.M. Best Rates Aflac Notes

Posted: 16 Aug 2010 12:35 PM PDT

Basking after a good quarter, Aflac Inc. (NYSE:AFL) announced on Friday that rating agency A.M. Best Co. assigned debt ratings to its newly issued senior debt securities. The existing financial strength, issuer credit and debt ratings for Aflac remain unaltered.

Accordingly, A.M. Best has provided an "a-" rating to Aflac's newly issued $300 million senior unsecured notes due 2015, and to $450 million senior unsecured notes due 2040. While the $300 million notes carry an interest rate of … [visit site to read more]

Triumph Upgraded To Outperform

Posted: 16 Aug 2010 12:35 PM PDT

We have upgraded our recommendation on Triumph Group Inc. (NYSE:TGI) to Outperform from Neutral, based on the recently completed Vought acquisition.

During the first quarter of fiscal 2011, Triumph completed the acquisition of Vought Aircraft Industries Inc. from private equity firm The Carlyle Group for $1.44 billion. Triumph paid $525 million in cash and offered 7.5 million shares to Carlyle for a 31% stake in Triumph. Triumph issued senior notes to fund the acquisition. The acquired business … [visit site to read more]

Elan To Move ELND005 To Phase III

Posted: 16 Aug 2010 12:35 PM PDT

Elan Corporation Plc. (NYSE:ELN) and partner Transition Therapeutics Inc. (NASDAQ:TTHI) recently announced their plans to move their Alzheimer's disease pipeline candidate ELND005 into late stage trails. The companies also reported data from a mid-stage trial on ELND005. The companies presented positive safety and tolerability data on ELND005 taken twice-daily, for about 18 months. However, the trial's cognitive and functional co-primary endpoints failed to achieve statistical significance.

The … [visit site to read more]

Bally Q4 Misses Expectations

Posted: 16 Aug 2010 12:35 PM PDT

Gaming equipment maker Bally Technologies Inc. (NYSE:BYI) posted fiscal 2010 fourth-quarter results after the closing bell on Thursday. The company's GAAP net income grew 53.8% to $51.0 million from $33.2 million in the year-ago period. Excluding special items, adjusted EPS came in at 55 cents, which narrowly missed the Zacks Consensus Estimate by a penny.
 
Bally Technologies is a leading gaming systems company, which designs, manufactures, operates and distributes advanced gaming devices, … [visit site to read more]

The Truth About China As #2

Posted: 16 Aug 2010 12:35 PM PDT

It's official. China is now #2. Its economy (measured in nominal GDP for the second quarter) is now bigger than Japan's (according to numbers released today from the Japanese government). And at the rate it's growing, China could be the world's biggest economy in a a little more than a decade (Goldman Sachs says by 2027, PricewaterhouseCoopers says by 2020).
Don't be misled by these numbers. The important thing isn't China's ranking, nor the total value of China's production, … [visit site to read more]

Surging Demand May Boost Cotton ETNs

Posted: 16 Aug 2010 12:17 PM PDT

A surge in demand by emerging markets, depletion in inventories and Mother Nature may paint a rosy picture for cotton in the near-term future.
Demand in China and India for cotton has surged and is expected to remain healthy.  The world's largest cotton consumer, China, has seen demand for the commodity surge nearly 24% and demand growth in India is similar. Both of these nations have seen a surge of wealth and an expansion of the middle class which have started to spend more, in … [visit site to read more]

Forex Trading: EURUSD Approaches 100 Day MA At 1.2795. Remember The Level

Posted: 16 Aug 2010 12:06 PM PDT
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