Overseas Shipholding Group
We are maintaining our Sell recommendation on Overseas Shipholding Group, Inc. (<a href=http://www.zacks.com/stock/quote/osg>OSG</a>), and raising our target price to $30. OSG reported first quarter diluted EPS before nonrecurring items of $1.03, above the $1.00 consensus, but below our $1.06 estimate as revenues came in weaker than expected from lower spot tanker rates, partly offset by increased revenue days. <p> We are slashing our 2009 diluted EPS estimate to a loss of $0.45 per share from earnings of $2.10 per share, as we now believe the impact of the global economic slowdown will be more pronounced than previously expected. We have cut our 2009 revenue assumptions due to reduced estimates for spot market rates (roughly 45% of the company s fleet is exposed to the spot market) and fewer revenue days. <p> Our initial estimate for 2010 is a $0.05 loss per share. While OSG recently increased its dividend by 40%, we cannot rule out a dividend cut in the event of a protracted economic downturn.ENSCO International (ESV)
The recent strength in crude oil prices has improved the outlook for a cyclical recovery. Historically, jackup drillers like ENSCO (<a href=http://www.zacks.com/stock/quote/esv>ESV</a>) have enjoyed strong early-cycle leverage, a trend that we believe will play out this time as well. <p> While the near-term situation is expected to remain weak, with rig oversupply and soft demand weighing on dayrates, the medium to long-term outlook remains favorable. ENSCO enjoys strong leverage to this outlook given its fleet of premium jackup rigs, an exceptionally strong balance sheet, and growing deepwater exposure. <p> Our new $45 price objective, raised from $40 before, results from 2009 P/E and EV/EBITDA multiples of 7.4x and 4.3x, respectively, both well within historical trading ranges.Metals & Mining Industry
Prices have peaked due to the record commodities run-up and also by slowing economies. We do, however, have Buys on DRD Gold and Harmony Gold.StarInvest Completes the Acquisition of EXX.COM
MIDLAND, TX--(Marketwire - May 29, 2009) - StarInvest Group, Inc (
EXX is a front end financial system with applications for risk management, regulatory compliance, real time information for risk evaluation, and quotations services. EXX's CEO James Davico stated: "We are excited about the prospects of expanding EXX's business plan worldwide. We believe the synergy between the companies will be highly beneficial for our shareholders."
Align Technology (ALGN)
Align Technology (<a href=http://www.zacks.com/stock/quote/algn>ALGN</a>) is engaged in the design, manufacture, and marketing of a proprietary system, Invisalign, for the treatment of crooked teeth. The company's business fundamentals are negatively affected by the current economic turbulence. <p> As such, we expect revenue to decline in FY09. Furthermore, we think that the earnings quality could become an issue as management finds it difficult to meet growth targets. <p> We are recommending a Sell rating for this stock. We think that the shares deserve to trade at 10% discount to the comparable mean. This equates to a P/S multiple of approximately 2.0x and to a target price of $8.80.IBM Corp. (IBM)
As a result of its large non-US revenue base, IBM Corporation (<a href=http://www.zacks.com/stock/quote/ibm>IBM</a>) has been better insulated from the recent weakness in the U.S. economy than many of its peers. IBM's Q109 results indicate its strong position in emerging markets, which should continue to help drive growth. <p> Moreover, the company has focused on driving its bottom line through cost cutting efforts. It re-affirmed EPS guidance for the full year of 2009 and 2010. Although, revenue is not expected to grow by much, we expect margin improvements in 2009. <p> The company's long-term prospects look brighter as it maintains a strong position in the software and services market. We maintain our Buy rating on IBM shares and maintain our price target of $120.00.Cancer Therapeutics Finalizes Definitive Agreement With NanoTherapies, LLC
SALT LAKE CITY, UT--(Marketwire - May 28, 2009) - Cancer Therapeutics, Inc. (
Intelligrated and FKI Logistex Announce Strategic Combination, Creating an Industry Leader in Automated Material Handling Systems
CINCINNATI, OH--(Marketwire - May 28, 2009) - Intelligrated and FKI Logistex Group Limited
today announced the signing of a definitive agreement to combine the two
businesses, creating the leader in automated material handling systems and
services. Under terms of the agreement, Intelligrated will purchase the FKI
Logistex operations located in North and South America from Melrose plc
(
Trilliant Incorporated Delivers True Broadband to the Smart Grid With Acquisition of SkyPilot Networks
Pioneering Smart Grid Company Becomes First to Offer 100% High Bandwidth Coverage