Archive for November, 2011
(JNJ) Bayer Cut to Underperform
We recently downgraded Bayer (BAYRY) to Underperform from Neutral purely on valuation grounds. We believe that the stock is overvalued at current levels. Even though the US Food and Drug Administration (FDA) cleared Bayer/ Johnson & Johnson’s (JNJ) potential blockbuster...
23Nov2011 | vitalstocks | 0 comments | Continued(CAT) Caterpillar’s Sales Growth Dips
Caterpillar Inc. (CAT) recently reported sales statistics for the three months ending October 31, with machine sales increasing 31% on a year-over-year basis and engine sales rising 13% across the globe. The 31% sales growth in October was steady with the sales clip in the three...
23Nov2011 | vitalstocks | 0 comments | Continued(RPI) Restaurant Industry Stock Review – November 2011 – Industry Outlook
The restaurant industry is showing improvements and seems poised for long-term growth, but concerns about the health of the U.S. economy and the nagging sovereign debt issues in Europe pose some risks to this outlook. However, if we look back at the last few months, restaurant...
23Nov2011 | vitalstocks | 0 comments | Continued(SPLS) Staples Reports Quarterly Earnings In Line
Staples Inc. (SPLS), the global leader in the supply of office products, recently posted third-quarter 2011 results. The quarterly earnings of 47 cents a share came in line with the Zacks Consensus Estimate and jumped 15% from 41 cents earned in the prior-year quarter. Revenue...
23Nov2011 | vitalstocks | 0 comments | Continued(BHP) U.S. Natural Gas Price Forecast
by David Fessler, Investment U Senior Analyst Tuesday, November 15, 2011: Issue #1643 Most natural gas drillers have been scrambling to reposition their drill rigs over oil-rich acreage… And why not? With oil once again hovering near the $100-a-barrel mark, you can hardly blame...
22Nov2011 | InvestmentU | 0 comments | Continued(C) Citigroup Plans Layoff to Cut Costs
Citigroup Inc. (C) is mulling over retrenching 3,000 workers as part of its cost containment measures, the Wall Street Journal reported following communication with people familiar with the plans. Among total layoffs, Citi plans to slash 900 jobs from its securities and banking...
22Nov2011 | vitalstocks | 0 comments | Continued(ISRG) Intuitive Surgical 2011 Third Quarter Earnings Scorecard
Intuitive Surgical (ISRG) reported favorable third-quarter 2011 results. Earnings per share came in at $3.05, beating the Zacks Consensus Estimate of $2.76 and the year-ago figure of $2.14. Net income climbed 41.3% year over year to $122.4 million. Second Quarter Review Revenues...
22Nov2011 | vitalstocks | 0 comments | Continued(ETP) Energy Transfer Partners L.P. Completes Unit Offering
Energy Transfer Partners L.P. (ETP) announced the closure of its previously announced public offering. The firm priced the public offering of 13,250,000 common units at $44.67 apiece. The natural gas and propane gas master limited partnership (MLP) plans to use the net proceeds...
22Nov2011 | vitalstocks | 0 comments | Continued(JPM) JPMorgan Chase & Co Ends Trial Fees
JPMorgan Chase & Co. (JPM) has decided to withdraw its other bank fees related to checking accounts in addition to debit card usage fee. The news should spread cheer among customers as these charges were not part of the company’s regular fee structure. Over the last 10...
22Nov2011 | vitalstocks | 0 comments | Continued(ETFC) E*TRADE Financial Corporation’s October Daily Average Revenue Trades Perks Up
Online broker E*TRADE Financial Corporation (ETFC) released its Monthly Activity Report for October 2011 on Wednesday, recording a sequential as well as year-over-year rise in average U.S. trades driven by volatile markets. For the reported month, Daily Average Revenue Trades...
22Nov2011 | vitalstocks | 0 comments | Continued(BAC) Credit Card Mixed Net Charges Off & Delinquency in October
Some regulatory filings by major credit card companies have disclosed mixed results in credit card defaults and delinquency rate for October 2011. According to these filings, three of the nation’s top six credit card companies reported a decline in card defaults, while...
22Nov2011 | vitalstocks | 0 comments | Continued(JPM) U.S. Bank Failures in 2011 Reach 90
U.S. regulators continue to shutter banks. Last Friday saw the closing down of one bank in Iowa and another in Louisiana. The twin closure takes the total number of U.S. bank failures to 90 so far in 2011, following 157 in 2010, 140 in 2009 and 25 in 2008. While the financials...
22Nov2011 | vitalstocks | 0 comments | Continued(MGI) MoneyGram International Prices Secondary Offering
On Friday, MoneyGram International Inc. (MGI) announced a secondary offering of 9.25 million shares that were owned by investors of private equity firm Thomas H. Lee Partners and investment bank Goldman Sachs Group Inc. (GS) under the recapitalization program, which was initiated...
22Nov2011 | vitalstocks | 0 comments | Continued(MMM) 3M Company 2011 Third Quarter Earnings Scorecard
3M Company (MMM) reported modest results for the third quarter of 2011. The company achieved year-over-year top-line growth of 9.6%, as five out of six segments saw revenue growth. The bottom-line slipped 1% however, missing our estimate by 9 cents. Third Quarter Highlights Total...
22Nov2011 | vitalstocks | 0 comments | Continued(HIG) Hartford Financial Services Group – Bear of the Day
We are downgrading our recommendation on Hartford Financial Services Group (HIG) to Underperform based on its weak third quarter results. The results surpassed the Zacks Consensus Estimate but declined from the year-ago quarter, primarily due to poor operating performance, with...
22Nov2011 | vitalstocks | 0 comments | Continued(GRMN) Garmin Limited – Bull of the Day
Garmin Ltd. (GRMN) is an OEM of GPS-based equipment. September quarter earnings thrashed the Zacks Consensus Estimate and 2011 guidance was raised. Garmin s market share, brand equity, compelling new products across segments, significant diversification of revenue, strategic...
22Nov2011 | vitalstocks | 0 comments | Continued(S) Sprint Announces Holiday Discounts
Looking ahead at the Christmas and holiday season, Sprint (S) has announced discounted offering on wireless Broadband services. The company will now charge $50 a month for 6 gigabytes (GB) compared to its previous offer (launched in November 1) of $60 a month for 5 GB. The discounted...
22Nov2011 | vitalstocks | 0 comments | Continued(AMZN) A Smartphone from Amazon?
Rumor has it that Amazon.com (AMZN) will be launching a smartphone late next year. Well, may not be a rumor exactly, since the Citigroup (C) analyst reporting the development mentioned that his supply chain checks suggested that such a device was in fact being developed in collaboration...
21Nov2011 | vitalstocks | 0 comments | Continued(ZOLL) ZOLL Medical Corporation – Bull of the Day
We upgrade our recommendation on ZOLL Medical Corp. (ZOLL) to Outperform following its forecast-topping fourth quarter results. Revenues and earnings for the quarter outperformed the Zacks Consensus Estimates, driven by strong contributions from the company’s LifeVest and...
21Nov2011 | vitalstocks | 0 comments | Continued(DV) DeVry Incorporated – Bear of the Day
We are downgrading DeVry Inc.’s (DV) stock from Neutral to Underperform on the back of sluggish first quarter 2012 earnings of $0.83, which missed the year-ago level as well as Zacks Consensus Estimate by 19.4% and 13.5% respectively. Deteriorating economic conditions and...
21Nov2011 | vitalstocks | 0 comments | Continued(DHI) U.S. Housing Starts Slip Less Than Expected
We got some fairly good news on the housing front this morning. Housing Starts fell in September to a seasonally-adjusted annual rate of 628,000 from 630,000 in August, a drop of 0.3%. But the number was much better than the expected level of 603,000. However, the September numbers...
21Nov2011 | vitalstocks | 0 comments | Continued(UAL) Airlines Fall as Crude Prices Rise
With oil prices trading above the $100/barrel benchmark (first time since June), airline stocks are once again taking it on the chin. Amid positive news of flight additions across all major airlines, the surge in oil prices comes as a massive jolt for the U.S. carriers, resulting...
20Nov2011 | vitalstocks | 0 comments | Continued(XOM) U.S. Petroleum and Distillate Stocks Shrink
The U.S. Energy Department’s weekly inventory release showed that crude inventories moved down, while gasoline stocks added to their supplies. The agency’s report further revealed that distillate stockpiles declined for the seventh-straight week. Meanwhile, refiners improved...
20Nov2011 | vitalstocks | 0 comments | Continued(AZO) U.S. Retail on the Rise
Total Retail Sales rose 0.5% in October on top of a 1.1% rise in September. Relative to a year ago they are up 7.2%. While the number is not adjusted for inflation (it is, but only for seasonality and holidays) it is still a strong showing. It was also better than the expected...
20Nov2011 | vitalstocks | 0 comments | Continued(DPL) Alternative-Energy Stock Outlook – November 2011 – Industry Outlook
Historically, the growth outlook of alternative energy companies has been inversely related to the prices of petroleum products and directly related to the fortunes of the economy. In the near term, however, the fortunes of the alternative energy players are undergoing a radical...
19Nov2011 | vitalstocks | 0 comments | Continued(CME) A Beginner’s Guide to Commodity Investing
by Carl Delfeld, Investment U Senior Analyst Thursday, November 17, 2011 I’ll never forget my first visit as a teenager to the commodity-trading pit of the Chicago Mercantile Exchange (CME). The swirling bright colored jackets, the shouting and rapid hand signals (looked like...
18Nov2011 | InvestmentU | 0 comments | Continued(CHK) Chesapeake Energy Service Business to Go Public
Chesapeake Energy Corporation (CHK) is contemplating to squeeze value from its oil-field service business – Chesapeake Oilfield Services LLC – by spinning it off in a public stock offering. The company aims to create value for investors and enhance the share price of the...
18Nov2011 | vitalstocks | 0 comments | Continued(SKS) U.S. Retail Still Rolling – Zacks Industry Rank Analysis
Industry Rank Analysis 11-15-11 Before you know it, Christmas will be here. That is something that tends to bring retail front and center to the minds of investors. Rumors of the death of the U.S. consumer appear to be premature. Despite extremely low levels in the surveys of...
18Nov2011 | vitalstocks | 0 comments | Continued(HMC) Honda Motor Company – Bear of the Day
Honda Motor Company’s (HMC) financial results are severely affected by a stronger Yen and the catastrophic disaster in Japan in March. Furthermore, recent floods in Thailand also damaged the company’s operations. As a result, Honda could not provide guidance for the...
18Nov2011 | vitalstocks | 0 comments | Continued(COG) Cabot Oil & Gas – Bull of the Day
We are maintaining our Outperform recommendation on shares of Cabot Oil & Gas (COG), reflecting its impressive exposure to the high-return Marcellus and Eagle Ford Shale plays, as well as its above-average production growth. Furthermore, the capital infusion of over $200...
18Nov2011 | vitalstocks | 0 comments | Continued