CEMIG S.A. (CIG)
We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG (<a href=http://www.zacks.com/stock/quote/cig>CIG</a>). Although the company posted lower-than-expected results for the first quarter of 2009, those results were impacted by a few non-recurring items. <p> However, the short-to-medium term outlook remains promising as demand for electricity in Brazil keeps growing. Despite the global credit crunch, we still have a reasonably positive outlook for the Brazilian economy in the short term. <p> Finally, CEMIG has a solid dividend payout, and we believe that the stock is quite undervalued compared to other international electric utilities.Motorola, Inc. (MOT)
While we maintain our Sell rating for Motorola (<a href=http://www.zacks.com/stock/quote/mot>MOT</a>), we have adjusted our valuation target higher based on current market conditions. MOT is a leading manufacturer of mobile handsets, network infrastructure, and cable products. <p> Revenue in the last reported quarter was significantly below our estimates due to continued weakness of the mobile handset sales. We are not convinced that a turnaround will take place without a major restructuring initiative as the company is exposed to lingering economic headwinds, lower overall worldwide demand for its handsets, a lack of high-end competitive PDA wireless devices, and reduced visibility for near-term revenue improvement. <p> However, stringent cost control measures taken by the management and development of new smart-phone devices are some initial positive indicators that will be monitored for longer-term rating consideration.Avaya Announces New Initiatives for Mid-Size Contact Center Market
Company Acquires Agile Software NZ Limited; New Avaya Contact Center Express 4.0 Solution Launches With Greater Functionality and Streamlined Simplicity
Flanders Corporation Acquired Assets From Wildwood Industries, Inc.
WASHINGTON, NC--(Marketwire - May 27, 2009) - Flanders Corporation (
Flanders Corporation's Chairman, president and CEO Harry Smith said: "As reported, during our first quarter conference call, our business is quite solid and we are well positioned as we head into our busy summer season. We intend to opportunistically add capacity to service our growing customer base and believe this acquisition strengthens Flanders as the largest U.S. producer of air filtration products. With our expertise, we expect to effectively leverage these assets and add value to our company."
JC Penney (JCP)
JC Penney (<a href=http://www.zacks.com/stock/quote/jcp>JCP</a>) reported first quarter earnings per share that were at the high end of the company's guidance of $0.09- $0.11. Management anticipates a challenging environment for the rest of the year. <p> Through the middle of May, JC Penney did not see any dramatic change in trends from the first quarter. For the second quarter, JCP expects sales to decrease 7%-10% with a net loss of $0.14 to $0.25 per share. For the full-year, JCP expects compstore sales to decrease 9% and earnings per share of $0.50 to $0.65. <p> The stock is trading at 40 times our 2009 EPS estimate of $0.66. We think that valuation is too optimistic given the retailer's weak sales trends and difficult consumer spending environment. Our target price is $16, which is about 15x our fiscal 2010 EPS estimate.Alternative Energy
We favor companies offering photovoltaics (PV) and large-scale concentrated solar power (CSP) and nuclear systems over other forms alternative energy such as biofuels, geothermal or hydropower. Our Buys include Entergy, FPL Group, Evergreen Solar, Energy Conversion Devices and SunPower.EnCana Corp. (ECA)
EnCana Corp.'s (<a href=http://www.zacks.com/stock/quote/eca>ECA</a>) better-than-expected first-quarter 2009 results were driven by robust production growth and strong cost controls. Natural gas production was up 4% to 3.9 Bcf/d, strongly positioning the company to achieve full-year guidance. <p> EnCana also benefited from lower operating costs. We continue to like the company for its industry-leading inventory of long-lived unconventional oil and gas assets. Additionally, EnCana remains focused on capital discipline and free cash flows. <p> With about two-thirds of its volumes this year hedged at very attractive price points, the company is expected to generate around $1.6 billion in free cash flows. Keeping in view the company's year-end 2008 proved reserves and upside potential from unbooked resources, our per share net asset value estimate comes to $64.60. Our new $64 price objective, raised from $54 before, is at approximately 100% of our NAV [net asset value] estimate.Zcom Networks Closes Acquisition of Kortel Communications, Inc.
LOS ANGELES, CA--(Marketwire - May 26, 2009) - Zcom Networks, Inc. (
DoMark International, Inc. Completes Acquisition of Victory Lane and Receives Preliminary Term Sheet for $16 Million in Funding
ORLANDO, FL--(Marketwire - May 26, 2009) - DoMark International, Inc. (
Victory Lane is a unique and exclusive Lifestyle Development on 3,000 acres approximately 75 miles from Savannah, Georgia, which includes exclusive home sites, a 4.5-mile grand prix circuit, a Davis Love III designed golf course and a 6,000-foot private runway.