Lions Gate Entertainment (LGF)
<b>Lions Gate's</b> (<a href=http://www.zacks.com/stock/quote/lgf>LGF</a>) third-quarter 2010 quarterly loss of $0.55 per share was far below the Zacks Consensus Estimate of a net loss of $0.22. <p> The company's net loss per share did improve from a loss of $0.84 delivered in the prior-year quarter, but it fell sharply from an earnings of $0.26 posted in the second quarter of 2010. Further, the company's theatrical revenue has also been declining. <p> The home entertainment alternatives have resulted in a secular decline in movie theater attendance, which would shrink theatrical revenue industry-wide. Another factor impeding the growth is the escalating cost of motion picture production and marketing, which may jeopardize Lions Gate's margins.
March 11, 2010 | Filed Under Stocks to Sell | Leave a Comment
Novatel Wireless (NVTL)
We are downgrading <b>Novatel Wireless</b> (<a href=http://www.zacks.com/stock/quote/nvtl>NVTL</a>) to Underperform following its fourth quarter 2009 financial results, which were significantly below Zacks Consensus Estimates. <p> Novatel is facing intensifying competition for its core embedded solutions for wireless data access. Although Novatel has developed a niche for its MiFi mobile intelligent hot spot, we foresee increased competition as large firms like Qualcomm, ZTE and Huawei Technologies are on the verge of introducing their own version of intelligent mobile hot spots. <p> The company's outlook was tepid. We do not find any immediate growth catalysts for Novatel and believe the company will incur losses for full-year 2010.
March 11, 2010 | Filed Under Stocks to Sell | Leave a Comment
Priceline.com (PCLN)
<b>Priceline.com</b> (<a href=http://www.zacks.com/stock/quote/pcln>PCLN</a>) is one of the leading online travel companies in the world. The company's fourth quarter results beat the Zacks Consensus Estimates on both the top and bottom lines. <p> Management expects strong double-digit bookings growth in the first quarter, although international is expected to grow faster than domestic. The company saw double-digit growth in revenue, gross profit dollars and operating profit dollars during recession-hit 2009. <p> The current momentum in the business -- international growth opportunities, good execution, prudent marketing strategy and strong financial position -- are positives. Occupancy tax-related litigation and declining ADRs are areas to watch. We are reiterating our Outperform rating on PCLN shares.
March 11, 2010 | Filed Under Stock Picks | Leave a Comment
Amazon.com (AMZN)
<b>Amazon.com</b> (<a href=http://www.zacks.com/stock/quote/amzn>AMZN</a>) is one of the largest online retailers in the world. The company reported very strong fourth quarter numbers, beating the Zacks Consensus Estimate. <p> Forward guidance for the first quarter was also very strong. The high growth profile of the core business, international success and steady margins help Amazon generate solid cash flows. Additionally, the company has a very strong balance sheet. <p> Although competition in online retail is heating up, which has the potential to pressure prices and weaken margins, we think the company has the market position and financial muscle to outgrow others in the space. Consequently, we are reiterating our Outperform rating on AMZN shares.
March 11, 2010 | Filed Under Stock Picks | Leave a Comment
Rockwell Automation (ROK)
<b>Rockwell Automation</b> (<a href=http://www.zacks.com/stock/quote/rok>ROK</a>) has a strong global market presence. The company is focused on further expanding its global footprint in emerging markets, as it expects automation growth rates in the emerging markets to be 50% higher than growth rates in the developed countries. <p> Emerging market growth is key to meeting the company's target of deriving 60% of its revenue from outside the U.S. by 2013. As it enters new markets, Rockwell intends to broaden its portfolio of products, services and solutions. <p> Successful diversification into emerging markets and expansion of product portfolio will drive the company s top-line growth over the long term. We are upgrading the stock to Outperform.
March 11, 2010 | Filed Under Stock Picks | Leave a Comment
TRW Automotive (TRW)
<b>TRW Automotive Holdings</b> (<a href=http://www.zacks.com/stock/quote/trw>TRW</a>) is well positioned to take advantage of an industry rebound, given its advanced technology portfolio, leading diversification and improved cost structure. <p> The company's innovative product portfolio is capable of generating top- and bottom-line growth. It has been successful in its restructuring and cost containment actions to mitigate the impact of the industry-wide downturn, as reflected in the better-than-expected fourth-quarter results. <p> As such, we are maintaining our long-term Outperform recommendation for the stock with a target price of $32.
March 11, 2010 | Filed Under Stock Picks | Leave a Comment
TRW Automotive (TRW)
<b>TRW Automotive Holdings</b> (<a href=http://www.zacks.com/stock/quote/trw>TRW</a>) is well positioned to take advantage of an industry rebound, given its advanced technology portfolio, leading diversification and improved cost structure. <p> The company's innovative product portfolio is capable of generating top- and bottom-line growth. It has been successful in its restructuring and cost containment actions to mitigate the impact of the industry-wide downturn, as reflected in the better-than-expected fourth-quarter results. <p> As such, we are maintaining our long-term Outperform recommendation for the stock with a target price of $32.
March 11, 2010 | Filed Under Stock Picks | Leave a Comment
Microsoft Corp. (MSFT)
<b>Microsoft Corp.</b> (<a href=http://www.zacks.com/stock/quote/msft>MSFT</a>) is one of the largest software companies in the world. The company's operating systems are installed on nearly all computers anywhere in the world. Therefore, the recovery in the PC market is encouraging. <p> The huge core business, management's acquisition strategy and cost reduction initiatives are driving strong cash flows and earnings growth. While we recognize that competition continues to increase and the company's dominant position in the PC market could erode, we note that attach rates of the new OS are increasing. <p> We believe that Microsoft is poised to benefit from new product cycles in both the enterprise PC and server markets. Hence, we are upgrading MSFT shares to Outperform.
March 10, 2010 | Filed Under Stock Picks | Leave a Comment
Deckers Outdoor (DECK)
The strong demand for the UGG brand product line, new product introductions and in-demand inventory has helped <b>Deckers Outdoor</b> (<a href=http://www.zacks.com/stock/quote/deck>DECK</a>) to achieve robust growth. The company's top-line has increased at a CAGR of 32% in the last five fiscal years. <p> The company's efforts to expand internationally are also encouraging. The international markets provide a significant growth opportunity, and we remain optimistic about the company's incremental sales and earnings potential. <p> The company also has a healthy balance sheet with a significant cash balance and no debt at the end of fiscal year 2009, which provides it with ample liquidity to capitalize on future growth opportunities.
March 10, 2010 | Filed Under Stock Picks | Leave a Comment
LECG Corporation Completes Merger With Smart Business Advisory & Consulting
EMERYVILLE, CA--(Marketwire - March 10, 2010) - LECG Corporation (
March 10, 2010 | Filed Under Mergers and Acquisitions | Leave a Comment