<b>O'Reilly Automotive</b> (<a href=http://www.zacks.com/stock/quote/orly>ORLY</a>) is continuously benefiting from its dual market strategy and strong distribution network.
In the first quarter of 2010, the company beat the Zacks Consensus Estimate of $0.59 per share and its own guidance of $0.56-$0.60 per share by posting earnings of $0.70. The CSK acquisition is expected to boost the company's earnings and savings in 2010, and will help the company outgrow its competitors.
Moreover, the company's aggressive store opening strategy is well supported by its improving cash flow. Thus, we upgrade our recommendation from Neutral to Outperform with a target price of $57.00.
May 31, 2010 | Filed Under Stock Picks
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<b>Nokia Corp.</b> (<a href=http://www.zacks.com/stock/quote/nok>NOK</a>) is facing serious problems in the high-end feature-rich smartphone segment. Smartphones are expected to become the next-generation choice, taking over the market share from basic mobile handsets.
As of now, unfortunately, Nokia has failed to introduce any smartphone to compete with BlackBerry, iPhone or any Android-based handsets. Nokia's inability in the high-margin lucrative smartphone market will put more pressure on its earnings going forward. Feature-rich software and services are the main characteristics of any smartphone, which Nokia seriously lacks.
There is no near-term visibility about the launch of the upgraded Symbian. Additionally, the company's network infrastructure solutions wing is still facing economic headwinds. We downgrade our recommendation to Underperform due to the absence of any catalyst.
May 31, 2010 | Filed Under Stocks to Sell
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There are different types of retirement investors and ultimately, different approaches to growing your money. Some investors play the high stakes game of competing against the market itself. These investors have entered the largest poker tournament the world has to offer. And who has joined these gamblers at the table? Teams of the smartest minds, best researchers, and leading technologists backed by shocking large coffers – Wall Street professionals that are in it to win it.
Investors who have decided to enter this tournament via day trading, market timing, technical analysis or even tactical asset allocation, need to pay close attention. You are playing a game that is very difficult to win, especially if you have fewer resources, knowledge and technology than your competition. Oh, sure, you might be lucky enough to win a few early hands but the long-term outcome is fairly predictable. Such investors live with a prevailing sense of unrest knowing that they have shown up to a shotgun duel carrying a pocketknife.
Wealthy families, endowments and elite institutions practice a different investment approach. These investors are wise enough to avoid, paying fees to managers trying to “beat” the averages in public stock markets. Sure, they may invest in private equity and venture capital where they enjoy an advantage via access to the best deals and terms. But when it comes to public markets, these investors commit a large portion of their portfolio to passive indexed strategies – the MarketRiders approach. The only bet such investors are making is that the world is in fact not coming to an end any time soon and that its markets, companies and their portfolio will continue to grow over long periods of time.
This approach provides amazing freedom from having to stare at your portfolio several times a day. Unconcerned about the daily gyrations of Jim Cramer and the rest of the bobble-headed finance media, long-term and disciplined MarketRiders can go about their daily lives with peace of mind. Sure, the market is down May and your portfolio probably dropped with it, but with a retirement time-horizon that is years away, your portfolio will not only recover, but grow quite nicely. And by rebalancing you are taking advantage of these swings. This knowledge frees you from staring at a computer monitor and gives you time to go about the real business of living your life. In the end, isn’t that what the money is actually for?
May 31, 2010 | Filed Under ETF Picks
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59.13% Stake to Be Sold for Approximately US$ 44.5 Million; Enables Avaya Channel Diversification in India; Completion Subject to Customary Indian Regulatory Requirements
Provides Deposits and Assets of Approximately $1.2 Billion and $1.5 Billion; EverBank Uses Acquisition to Foray Into Wealth Management and Private Banking
Value stocks can pay off if you pick carefully. For the average investor hunting for low-priced value stocks can require exhaustive research and countless hours of investigative work. And buyer beware: You could wind up in some dimly lit trading room staring down at a stock that’s deader than last call at a southern baptist [...]
May 28, 2010 | Filed Under Uncategorized | Leave a Comment
[[http://stockcharts.com/members/videos/|Link for today’s video.]] While the **S&P 500 ETF (SPY)** tested its February low this month, the Russell 2000 ETF (IWM) held well above its February low....
PHOENIX, AZ--(Marketwire - May 28, 2010) - EastBridge Investment Group (EBIG) (OTCBB: EBIG) today announced that its client, Tsingda Century Education ("Tsingda"), has successfully reverse merged into Compass Acquisition Corporation ("Compass").
<b>Cummins, Inc.</b> (<a href=http://www.zacks.com/stock/quote/cmi>CMI</a>) is set to benefit from fuel economy improvements, new emission standards and increased prices. Liquidity is also improving. However, a slump in key markets, including the U.S., and a soft heavy-duty truck market that forms over 50% of the company's business raise concerns.
Nevertheless, the company reported strong results in the most recent quarter, driven by continued strength in China, India and Brazil. It also surpassed the Zacks Consensus Estimate by $0.40 during the quarter.
Our long-term Outperform recommendation on the stock indicates that it will perform better than the broader market. Our $82 target price, 21.8X 2010 EPS, reflects this view.
May 27, 2010 | Filed Under Stock Picks
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We reiterate our Underperform recommendation for <b>Nippon Telegraph & Telephone</b> (<a href=http://www.zacks.com/stock/quote/ntt>NTT</a>), following the company's disappointing fiscal
2011 financial outlook.
We remain concerned regarding the less-than-anticipated sales of mobile handsets due to weak economic conditions in Japan, together with significant declines in ARPU as subscribers migrate to discounted service plans. The company is also facing intense pricing pressure from smaller telecom service providers.
KDDI and Softbank are gradually improving their mobile networks with 3G/4G technologies. Near saturation of the Japanese wireless market also remains a major problem. Severe competition together with NTT's leveraged balance sheet may restrict higher valuation levels over the near-term.
May 27, 2010 | Filed Under Stocks to Sell
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