Archive for August, 2010
(EXPD) Expeditors International – Bull of the Day
We are upgrading our recommendation to Outperform for Expeditors International (EXPD) following second-quarter results. The company’s second quarter earnings surpassed the Zacks Consensus Estimate and the year-ago quarter level on strong airfreight and ocean shipping demand. Yields...
31Aug2010 | vitalstocks | 0 comments | Continued(AXP) Stock Market News for August 31, 2010 – Market News
That the U.S. stock market would not replicate July’s performance is almost certain now, but what is really disquieting is it could be the worst August in almost a decade. Merger deals notwithstanding, mood on Wall Street turned grim yesterday as worries about the pace of the...
31Aug2010 | vitalstocks | 0 comments | Continued(STR) Questar Corporation – Bear of the Day
We are downgrading Questar (STR) shares to Underperform from Neutral, due to the weak natural gas fundamentals and the company’s clouded post-split outlook. The continued glut in domestic gas supplies continues to weigh on the company, and storage levels remain above their...
31Aug2010 | vitalstocks | 0 comments | Continued(BAC) Company News for August 31, 2010 – Corporate Summary
• Some private investors are reportedly considering an offer for Saks (NYSE:SKS). The offer values the luxury retailer at $1.7 billion, or $11 per share • Citigroup (NYSE:C) noted Sanofi-Aventis (NYSE:SNY) may bid up to $74-$77 per share for Genzyme (NASDAQ:GENZ) • Deere...
31Aug2010 | vitalstocks | 0 comments | Continued(BCS) Does the U.S. Have Another Recession Ahead?
Are we heading into another financial meltdown? That is what the data released by the U.S. government last Friday seems to suggest. Statistics revealed by the Bureau of Economic Analysis shows economic growth that is stalling and may even flatten out over the rest of the year,...
30Aug2010 | vitalstocks | 0 comments | Continued(CMA) Comerica Analyst Reaffirms Stock’s Neutral Rating
We have reaffirmed our Neutral recommendation on the shares of Comerica Inc. (CMA) following the company’s earnings release, quarterly filing and the regulatory moves. The reaffirmation is based on the company’s fundamentals, growth opportunities, credit environment and challenges...
30Aug2010 | vitalstocks | 0 comments | Continued(SLB) Schlumberger Limited Completes Smith International Merger
Schlumberger Limited (SLB) completed its proposed merger with Smith International Inc. (SII) last Friday. The closure of the deal follows Smith shareholders’ vote in favor of the merger on August 24. Schlumberger’s superior product line will further be diversified through...
30Aug2010 | vitalstocks | 0 comments | Continued(INTC) Intel After Infineon’s Wireless Unit
Intel Corp., (INTC) which recently acquired security-software maker McAfee Inc. (MFE) in a $7.68 billion transaction, is believed to be nearing a deal to acquire the wireless business of Infineon Technologies. Infineon, a German semiconductor company, is known for its processors...
30Aug2010 | vitalstocks | 0 comments | Continued(IBM) International Business Machines Takes Over AT&T Unit
International Business Machines Corp. (IBM) completed the acquisition of AT&T Inc.’s (T) Sterling Commerce unit. As previously announced in May 2010, IBM signed a definitive agreement to buy Dublin, Ohio-based Sterling Commerce for $1.4 billion in cash. AT&T expects...
30Aug2010 | vitalstocks | 0 comments | Continued(PCAR) PACCAR Incorporated – Bull of the Day
We have upgraded our rating from Neutral to Outperform on PACCAR (PCAR), a designer and manufacturer of premium light, medium and heavy duty trucks. PACCAR maintains a robust market share, bolstered by strong growth in Mexico and Australia. In addition, its core business in Europe...
30Aug2010 | vitalstocks | 0 comments | Continued(VMI) Valmont Industries Incorporated – Bear of the Day
We are downgrading Valmont Industries (VMI) to Underperform from Neutral and are also reducing our target price to $63.00 from $91.00 due to the company’s muted second quarter 2010 profitability and poor topline growth. Valmont fell short of the Zacks Consensus Estimate...
30Aug2010 | vitalstocks | 0 comments | Continued(RDSA) Royal Dutch Shell Attempts to Speed Up Reclamation of Toxic Waste
Supermajor Royal Dutch Shell (RDSA) has started a new project in Alberta for speeding up reclamation of toxic waste ponds at oil sands operations. The company recently received regulatory approval for a commercial-scale test that it calls an “atmospheric fines drying”...
30Aug2010 | vitalstocks | 0 comments | Continued(F) Ford Motor Company and Mazda to Invest in Thai Joint Venture
Ford Motor Co. (F) and Japan’s Mazda Motor announced their plan to invest $350 million in their Auto Alliance joint venture (JV) plant in Rayong, Thailand. The investment will revamp the facility and help build a redesigned version of their compact pickup trucks from mid-2011. However,...
30Aug2010 | vitalstocks | 0 comments | Continued(GOOG) Google Offers Internet Calling – Enters Skype’s Territory
Free computer-to-computer voice calling has been around for years but using computers to make calls to landlines or mobile phones may soon be in vogue. Taking a leaf out of Skype’s book, Google (GOOG) announced recently that it will let users of its Gmail service in the U.S....
30Aug2010 | vitalstocks | 0 comments | Continued(BJ) BJ’s Wholesale Club Analyst Downgrades Shares to Underperform
We now expect BJ’s Wholesale Club Inc. (BJ), a leading warehouse club operator in the United States, to ”Underperform” compared to peers with a target price of $37.00. Earlier we had a “Neutral” recommendation on the stock. BJ’s 2Q Performance Lower-Than-Expected...
30Aug2010 | vitalstocks | 0 comments | Continued(FMCC) Fannie Mae and Freddie Mac Reports Losses in Billions
According to a report published by Federal Housing Finance Agency (“FHFA”) on Thursday, government-backed mortgage finance giants Fannie Mae (FNMA) and Freddie Mac (FMCC) lost $226 billion in capital in the last three years. As these two mortgage finance companies have absorbed...
29Aug2010 | vitalstocks | 0 comments | Continued(APC) U.S. Energy Information Administration Reports Natural Gas Supply on the Rise
The federal government’s Energy Information Administration (“EIA”) reported an in line increase in natural gas supplies, attributable to relatively warm temperatures in most regions that led to robust electric generation demand for the commodity. Stockpiles held in underground...
29Aug2010 | vitalstocks | 0 comments | Continued(NOVL) Novell Reports Third Quarter Earnings In Line – Revenue Slips
Enterprise software developer, Novell Inc. (NOVL) reported third quarter 2010 earnings of 5 cents, in line with both the Zacks Consensus Estimate and the year-ago quarter. Earnings include stock based compensation but exclude one time item. The better-than-expected result was...
29Aug2010 | vitalstocks | 0 comments | Continued(PCE) U.S. Gross Domestic Product Revised Down on Inventory and Trade
Prelude GDP growth in the second quarter was revised down to 1.6% from a preliminary reading of 2.4%. This post is essentially a re-post of my analysis of the first reading, only the numbers that were released a month ago are now in parenthesis, while the current estimates are...
29Aug2010 | vitalstocks | 0 comments | Continued(CSCO) Cisco Systems Aquires ExtendMedia
Cisco Systems Inc. (CSCO) has announced its intention to acquire venture capital-funded ExtendMedia, which is a maker of content management system (CMS) software. The deal, which according to some could be worth as much as $80 million, is expected to provide Cisco the necessary...
29Aug2010 | vitalstocks | 0 comments | Continued(MCD) July 2010 New Home Sales in Context
The shockingly low rate of New Home Sales in July needs to be put into context. The only problem is that the context only makes things seem worse than the raw numbers do. The 276,000 annual rate of New Home Sales was the lowest on record, and the record goes back to the start...
29Aug2010 | vitalstocks | 0 comments | Continued(IRS) UBS AG to Learn of End of IRS Tax Probe
The Internal Revenue Service (IRS) is planning to retire the tax probe against UBS AG (UBS). This decision of IRS follows the Swiss government’s assurance that it is about to deliver the details of the American account holders of UBS AG, who are alleged to have evaded American...
29Aug2010 | vitalstocks | 0 comments | Continued(EMR) Emerson Electric Launches New “Ridgid” Laptops
A business unit of Emerson Electric Co. (EMR), Ridgid, engaged in the manufacture of innovative tools, equipment and video inspection devices, has introduced a group of hardy laptops and convertible tablet PCs. The innovative products, by Ridgid, are designed on Dell Inc.’s...
29Aug2010 | vitalstocks | 0 comments | Continued(WY) Weyerhaeuser’s Announces 324 Million Share Special Dividend
Weyerhaeuser Co. (WY) announced that it will be issuing approximately 324 million shares as part of its dividend payment to shareholders of record as of July 22. The distribution, based on an average closing price of $15.54 as of August 24, 25 and 26, will increase the company’s...
29Aug2010 | vitalstocks | 0 comments | Continued(SUN) Double-Dip Means Double Trouble for U.S. Refiners – Play the Gasoline Boom $$
by David Fessler, Energy and Infrastructure Expert Friday, August 27, 2010: Issue #1333 Despite boasting just 5% of the global population, the United States goes through 25% of the world’s oil every year. That startling statistic is no secret – and it’s entirely understandable....
29Aug2010 | InvestmentU | 0 comments | Continued(V) Visa Report Notes Lobbying Charges Expand $$
Visa Inc. (V) has reported that it has spent $1.53 million during the second quarter 2010 to address concerns related to credit card regulations and other issues. The lobbying charges nudged up 14% for Visa from $1.34 million in the year-ago quarter and $1.12 million during the...
29Aug2010 | vitalstocks | 0 comments | Continued(SHPGY) Shire Plc Earns European Approval for Vpriv
Recently, Shire Plc. (SHPGY) received a boost when the European Commission approved its Gaucher disease product Vpriv (velaglucerase alfa) for marketing in 30 European countries. The decision to approve the product does not come as a surprise as the drug’s approval for the...
28Aug2010 | vitalstocks | 0 comments | Continued(DENN) Denny’s Announces New Chief Operating Officer
Denny’s Corporation (DENN) recently announced the appointment of Robert Rodriguez as the chief operating officer (COO), effective by September 13, 2010. He will be responsible for Denny’s operations in all franchise and company-operated units. Denny’s current management...
28Aug2010 | vitalstocks | 0 comments | Continued(STJ) St. Jude Medical Joins Forces with Hansen Medical
Medical devices giant St. Jude (STJ) has formed a strategic alliance with Hansen Medical (HNSN), a leader in medical robotics technology, to jointly develop products to treat heart rhythm disorders (arrhythmia) leveraging their proprietary technologies. The financial terms of...
28Aug2010 | vitalstocks | 0 comments | Continued(WSC) Berkshire Hathaway Buys 20% of Munger’s Wesco Financial Corporation
Yesterday, Waren Buffett, the chairman and CEO of Berkshire Hathaway Inc. (BRKA, BRKB) announced its intention to buy 20% of Wesco Financial Corp. (WSC), a company run and controlled by Charles T. Munger. Following approval by shareholders’ of both the companies, the Wesco...
28Aug2010 | vitalstocks | 0 comments | Continued