Navigant Consulting – NCI
Utilization rates continue to decline, and bill rates are down as well. <B>Navigant Consulting</B> (<a href=http://www.zacks.com/stock/quote/NCI>NCI</a> is taking steps to restructure its business, but the operating environment remains challenging. <P ALIGN="left"> As we have maintained for some time, we expect Navigant s utilization rates to remain under pressure as clients continue to defer or forgo engagements. Companies in every industry are seeking to cut expenses wherever possible, and the operating climate for business consulting firms remains extremely challenging. <P ALIGN="left"> Until we see further evidence that NCI can improve utilization rates and operating results, we believe that a premium valuation is unwarranted. Our price target of $9.00 reflects a multiple of 13x our 2009 estimate. <P ALIGN="left"> As such, we continue to rate the shares a Sell at this time. <P ALIGN="left">Telecom Industry
Qualcomm and China Mobile have significant cash, and each has unique exposure to wireless and international business, along with strong balance sheet positions to sustain their expansion initiatives.Arthur Hill: INTERMARKET TURMOIL COULD AFFECT STOCKS – DOLLAR FINDS SUPPORT – STRONG DOLLAR HITS GOLD – OIL DECLINES FROM KEY RETRACEMENT – BONDS BOUNCE OFF KEY RETRACEMENT
[[http://stockcharts.com/members/videos/20090729-1/|Link for today’s video.]] There has been a noticeable shift in the intermarket arena over the last few days. First, let’s back up and look at...Arthur Hill: INTERMARKET TURMOIL COULD AFFECT STOCKS – DOLLAR FINDS SUPPORT – STRONG DOLLAR HITS GOLD – OIL DECILNES FROM KEY RETRACEMENT – BONDS BOUNCE OFF KEY RETRACEMENT
[[http://stockcharts.com/members/videos/20090729-1/|Link for today’s video.]] There has been a noticeable shift in the intermarket arena over the last few days. First, let’s back up and look at...Delphi Midstream Partners Announces Equity Funding to Acquire Midstream Energy Companies and Assets
NEW YORK, NY--(Marketwire - July 29, 2009) - Delphi Midstream Partners, LLC (DMP), a newly-formed energy investment company, has received an equity commitment from American Securities (AS) in support of a strategy to invest in and acquire up to $2 billion of midstream energy sector companies and assets. The founding partners of DMP are Thomas F. Karam, President & CEO, and Michael J. Walsh, Senior Vice President. Mr. Karam has over 20 years of energy sector experience, most recently serving as President & COO of Southern Union Company (SUG), one of the largest natural gas pipeline companies in North America. Mr. Walsh was a Partner and founding member of Highstar Capital before establishing DMP, where he was responsible for Highstar's investments in the midstream energy sector.
GreenMan Technologies Completes Asset Purchase Agreement With American Power Group, Inc.
CARLISLE, IA--(Marketwire - July 29, 2009) - GreenMan Technologies, Inc. (
Internet Brands Acquires Websites in Money and Leisure Categories
Engaging, Targeted Websites Complement Company's Existing Properties in Valuable Segments
Johnson & Johnson (JNJ): A triple A play
"Johnson & Johnson (NYSE: JNJ) has vast holdings, but its strategy is simple: Support a deep pipeline of new drugs and medical devices with an aggressive acquisition strategy and cost controls," notes blue chip investor Richard Moroney.
In his Dow Theory Forecasts, he adds, "And despite the recession, J&J has kept its financial footing, remaining one of the few companies with the top credit rating of AAA." Here's his long term outlook.
"This year the U.S. pharmaceutical market is expected to contract for the fi rst time in 50 years as fewer people visit doctors or start new therapies for chronic conditions.
"Beyond 2009, an economic recovery should reinvigorate J&J, though it is too early to determine whether health-care reform will help or harm the company.
"J&J’s pharmaceutical segment (38% of revenue) has seen sales fall nearly 9% over the past year. In addition to recessionary forces, generic competition has weighed on the segment.
"The patent on epilepsy drug Topamax expired in March, and J&J lost exclusivity for its Risperdal antipsychotic in June 2008.
"Several experimental drugs have the potential to rejuvenate J&J’s portfolio. Analysts expect up to seven new drugs from the pipeline to begin contributing to revenue this year.
"Stelara for severe plaque psoriasis and Simponi for rheumatoid arthritis have already gained regulatory approval outside of the U.S. and are under review by the U.S. FDA.
"Meanwhile, since November, J&J has completed three takeovers for more than $2.2 billion and agreed to invest another $1.5 billion in Elan’s Alzheimer’s portfolio.
"As part of its investment in Elan, J&J gained an option that could allow it to acquire Biogen Idec’s 50% stake in Tysabri, a blockbuster drug for multiple sclerosis, if Biogen is acquired.
"J&J’s other two segments -- medical devices and consumer products -- have treaded water in the past 12 months, delivering roughly flat sales. And consensus estimates project roughly flat per-share profits in the second half of 2009.
"J&J’s stock price already reflects Wall Street’s modest expectations. Shares trade at 13 times trailing earnings, a 23% discount to the five-year average P/E ratio.
"The stock’s price also looks appealing relative to trailing sales (21% below the five-year average), cash flow (26%), and book value (18%). We rate the stock -- which is on our focus list -- a long-term buy."
Global expert eyes China real estate
"Claymore/AlphaShares China Real Estate ETF (NYSE: TAO) combines two prominent investment themes in one" says international specialist Nick Vardy in Global Bull Market Alert.
"Here's why I think this ETF is set to soar over the next few months. First, the fundamental case for real estate in China is compelling. Over the next five years, 1.5 billion square feet of space will be built in China.
"China is also booming, and is leading the global economy out of recession and looks set to hit its full-year growth target of 8%. Real estate investment already makes up 10.2% of China’s GDP. And that proportion is rapidly growing.
"Second, the Chinese stock market has been one of the top-performing markets of the world this year, holding up well even through the recent correction. But the real estate sector has been an even more impressive outperformer.
"The Shanghai property sub-index has jumped about 160% this year, beating a 75% surge in the benchmark Shanghai index.
"Favorable government policies such as cheaper mortgages and lower down-payments for buyers have lifted housing prices in 70 major Chinese cities since March.
"The past few weeks have also seen a steady stream of property firms eyeing IPOs, bond and share placements in anticipation of a real estate recovery.
"And with the bullish factors behind the boom expected to persist for a year or more, there is plenty of upside left.
"And for full disclosure, this is a position that I hold on behalf of some of my clients at my investment firm Global Guru Capital."
Tessera (TSRA): Digital gains
"If you use a mobile phone with a camera, thank Tessera (NASDAQ: TSRA)," says Mike Cintolo in The Cabot Top Ten Report. "Tessera is the go-to company in miniaturization."
"Tessera is one of the companies that drove the price of camera components down by miniaturizing them and combining them on a single chip.
"You’ll find its technology in MP3 players, video games, wireless phones, computers and numerous other products where companies are forever working to design products smaller and manufacture them more cheaply.
"But Tessera does very little manufacturing. Mostly, it develops technology and then licenses it to manufacturers. The result is profi t margins like 41.9%! Today Tessera is strong because the technology industry is rebounding quickly.
"Second quarter earnings will be released August 4, and you can expect to hear good news. TSRA appeared here on June 15 and 29, both times trading at 25, waiting to break above early-June resistance at 27.
"Now it has, breaking through cleanly on big volume last week as soon as the pressure came off the market. So what’s next?
"There’s no obvious resistance until the 45-46 area, where the stock topped out in 2005, 2007 and early 2008. So if you’ve got it, hold on tight. If you don’t own yet, buy now—Tessera is a great growth company."