Caterpillar (<a href=http://www.zacks.com/stock/quote/cat>CAT</a>) is a market leader in construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. With its strong brand name, pricing power and global dealer network, we believe Caterpillar is well positioned to take advantage of the growing need for infrastructure development globally.
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Though the company expects 2009 sales to decline more than 35% year-over-year, it anticipates an improvement in its top-line in 2010. The company forecasts a 10% to 25% increase in sales for 2010, compared to the midpoint of the 2009 outlook range.
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Asserting its optimistic outlook, the company recently announced plans to increase its
machinery prices by 2% effective January 2010. We are upgrading the stock to Outperform.
November 30, 2009 | Filed Under
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Specialty retailer Cost Plus, Inc. (<a href=http://www.zacks.com/stock/quote/cpwm>CPWM</a>) is closing stores, cutting costs, and trying to preserve cash, but those moves will do little to reverse its weak sales trends and merchandise margins.
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In addition, management's guidance for the third quarter cautioned investors to prepare for more weakness. Cost Plus expects same-store sales to decrease 6%-11% and a pre-tax loss from continuing operations of $19-$24 million.
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Cost Plus is scheduled to report third quarter results on December 3. We have an Underperform rating on CPWM shares. Our six-month target price is $0.50.
November 30, 2009 | Filed Under
Stocks to Sell |
Leave a Comment WILMINGTON, DE--(Marketwire - November 30, 2009) - RELM Holdings Inc. (PINKSHEETS: RELM)
announced today that it executed a Letter of Intent (LOI) to acquire 100%
of the membership interests in a well established Delaware-based
Information Technology Service and Support company. Management noted that
the target company will remain undisclosed pending the execution of
definitive agreements per customary non-disclosure terms agreed on by the
parties. The Company, founded in the mid 1990s, provides high-quality
computer related support and integration services to its clients in the
legal, financial, educational, governmental and commercial markets in and
around Delaware. Revenues for 2009 are expected to reach $4,000,000.00.
With this transaction and the previously announced planned acquisitions,
Relm Technology Group's (RTG) annual technology revenues will exceed
$10,000,000.00. Management will provide consolidated p
NEW YORK, NY and ZUG, SWITZERLAND--(Marketwire - November 30, 2009) - Thomson Reuters today
announced that it has acquired the business of ASSET4 AG, a Swiss-based,
leading provider of Environmental, Social Responsibility and Governance
(ESG) information and tools for professional investors and corporate
executives. This deal represents a step forward in the integration of ESG
data into mainstream financial analysis and underscores Thomson Reuters
commitment to meet the evolving needs of the global financial community.
Company to Purchase Minority Stake in an Emerging Company Focused on the Multi-Billion Dollar Wireless Sensor Market
While Sohu.com's (<a href=http://www.zacks.com/stock/quote/Sohu>SOHU</a>) third-quarter earnings beat the Zacks Consensus estimate and were in line with the company s own guidance, the outlook for the fourth quarter was far below expectation. The company's operating expenses have been steadily going up, which we fear could limit the growth in earnings.
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Moreover, recent delays in game launches, weak ad spending, which is hurting the brand advertising revenue and intense competition pose a threat. Strength in its online games and portal business are expected to be the strongest drivers for growth beyond 2010.
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Currently, we see limited upside for Sohu's revenue and earnings growth in the near term. We downgrade the stock to Underperform from our previous Neutral rating and set a six-month price target of $45.00.
November 29, 2009 | Filed Under
Stocks to Sell |
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We are upgrading our recommendation on the shares of Principal Financial (<a href=http://www.zacks.com/stock/quote/pfg>PFG</a>) to Outperform. The company's third quarter operating earnings were much ahead of the Zacks Consensus Estimate, driven primarily by the sequential improvement in domestic as well as global equity markets.
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We
believe that Principal's strong franchise within the pension sector, which is aided by its diversification both in terms of products and geography, positions it well to benefit from the gradual recovery of the credit market. However, rising unemployment is reducing the number of participants in existing employee benefit plans.
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Though we are concerned about higher delinquencies in its commercial mortgage portfolio, we expect the company to benefit from its decent capital level and cost containment measures.
November 29, 2009 | Filed Under
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The world stock markets fell on Thursday as Dubai attempted to delay debt payments for six months. The US stock market was closed for the Thanksgiving holiday, but the S&P futures are down considerably. Commodities, especially oil prices, are weakening while the U.S. Dollar and Treasury bonds are starting to rise.
Emerging markets are suffering significant losses [...]
November 27, 2009 | Filed Under
Uncategorized |
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An attempt by Dubai to delay debt payments for six months has rattled world markets. Most global stock markets fell on Thursday while the U.S. market was closed for the Thanksgiving holiday....
November 27, 2009 | Filed Under
Analyst Opinions |
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The Medicines Company's (<a href=http://www.zacks.com/stock/quote/mdco>MDCO</a>) third-quarter loss per share of 6 cents missed the Zacks Consensus Estimate of a loss of 5 cents. Although Angiomax continues to contribute significantly to revenues, we are concerned about the product losing exclusivity in the U.S. in September 2010.
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The entry of generics would be devastating for the company. Therefore, the onus is on management to acquire and develop the next
generation of products to drive the top-line. One of those products was expected to be Cangrelor. However, the failure of the phase III CHAMPION program was a significant setback.
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Meanwhile, the Cleviprex sales ramp has also been slow. We recommend avoiding the name until we gain more visibility on the Angiomax patent situation, the Cleviprex ramp and the future of Cangrelor and Oritavancin.
November 26, 2009 | Filed Under
Stocks to Sell |
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