The LWI services – which aid in cutting the costs of operation and enhancing oil recovery rate – will be carried out on the existing subsea wells, leading to higher output from mature oil fields.

The contracts, each of which contains two two-year extension options, will be executed following the approval from Statoil's partners. However, the financial terms of the agreement were not disclosed.

FMC’s contracts with Island Offshore are slated to begin once the existing LWI contracts between the companies terminate in 2015. Two Island Offshore vessels – the Island Frontier and the Island Wellserver – will be involved with the execution of the contract activities.

Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions and operates 27 manufacturing facilities in 16 countries. The company conducts its operations in three segments: Subsea Technologies, Surface Technologies and Energy Infrastructure.

We believe that FMC Technologies is one of the leading subsea equipment manufacturers with solid earnings growth potential over the next several years on the back of a favorable industry outlook. Other positives for the company include a strong backlog position, growing international operations, technology leadership and efficient execution skills.

However, we maintain a long-term Neutral rating on the stock, given the uncertain commodity price outlook and a soft global economy that continue to weigh on the company. Additionally, competitive market conditions along with weak pricing also make us apprehensive.

FMC Technologies currently retains a Zacks #3 Rank, which is equivalent to a short-term Hold rating.

The recent hike in the dividend marks the company’s second dividend increase since it initiated dividend payment. Last year, the company increased its dividend from 15 cents to 25 cents.

Viacom possesses a strong balance sheet with $1.14 billion of cash and marketable securities. The excess cash available with the company will be utilized to repurchase shares or to pay dividends to its shareholders.

The nearest rivals of Viacom, News Corp. (NWSA) and Time Warner Inc. (TWX), pay quarterly dividends of 8.5 cents and 26 cents with dividend yields of 1.77% and 3.02%, respectively. These, however, are below the dividend paid by Viacom.

Viacom reported excellent financial results for the second quarter of 2012. Net income from continuing operations in the quarter was $588 million or $1.08 per share compared with $376 million or 63 cents per share in the comparable prior-year quarter. Adjusted EPS of 98 cents was also above the Zacks Consensus Estimate of 90 cents.

We believe that Viacom is well positioned for long-term growth as it continues to benefit from its predominately cable networks-based business model, strong affiliate fee revenue growth, continuous hit movie releases, strong share repurchase plan, multi-platform content, and is one of the fastest growing traditional ad media.

However, stiff competition from other media companies along with a slow economic recovery may act as headwinds for the stock going forward. We, thus, maintain our long-term Neutral recommendation on Viacom.

Currently, Viacom has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

We believe that Comcast is introducing this service to offset the growing threats from both telecom and satellite service providers that are taking away its potential customers.

Comcast is launching this service under the name of “voice 2go” and would allow its customers to make free calls and send messages through their home based wireless network or through Wi-Fi hotspots. This service will help Comcast customers to save their monthly mobile minutes and will be launched soon in the cable operator’s service markets. We believe that this innovative service will force telecom carriers to adjust their fees for providing Wi-Fi services.

Recently, the company entered into an agreement with other cable companies like Time Warner Cable Inc. (TWC), Cablevision Systems Corp. (CVC), Cox Communications Inc. and Bright House Networks, LLC to share around 50000 Wi-Fi hotspots. This agreement will allow the subscribers to get Wi-Fi connectivity outside their service area. This move will complement the company’s new service offering as this will enable it to spread the new service to a wider area.         

Additionally, we believe that cable MSOs are facing tough competition in the on-demand video market from satellite TV operators like DIRECTV Inc. (DTV) and DISH Network Corp. (DISH). Stiff competition from online video streaming providers is also acting as a negative catalyst for the company.

Comcast is looking at wireless data services to compensate the loss. The company wants to cash in on the roaming Wi-Fi opportunity which is expected to be a multi-billion dollar market in the next few years. As customers looks for better bundled offerings, this type of services will add value to Comcast’s customers.

Recommendation: We are maintaining our long-term Neutral recommendation on Comcast Corporation. Currently, Comcast Corporation has a Zacks #3 Rank, implying a short-term hold rating on the stock.

The multi-center, double-blind, randomized, active-controlled, phase III non-inferiority STARTMRK study is comparing Isentress combination therapy to efavirenz combination therapy in treatment-naïve HIV 1 patients. Results showed that patients in the Isentress arm experienced long-term viral suppression and a greater immunologic response at 156 weeks with a proven safety and tolerability profile.

Isentress is currently approved for the treatment of HIV-1 in adult and pediatric patients (2 years and above) in combination with other antiretroviral (ARV) agents. While Isentress is approved in more than 45 countries for use in treatment-naïve adult patients, it is approved in more than 90 countries for use in treatment experienced adult patients.

FDA approval for the pediatric indication (children two years and older and weighing at least 10kg) came earlier this year in January. Isentress sales came in at $1.4 billion in 2011 – label expansions and launches in additional countries should help drive sales further. Other players in the HIV market include Gilead (GILD) and Bristol-Myers Squibb (BMY), among others.

Neutral on Merck

We currently have a Neutral recommendation on Merck, which carries a Zacks #3 Rank (short-term Hold rating). Merck is currently facing issues such as the patent expiration of key drug, Singulair and the Remicade/Simponi transition.

We believe the company will continue resorting to cost-cutting initiatives to drive the bottom-line. Meanwhile, some of the company’s recent launches should start contributing significantly to the top line in the forthcoming quarters.

Save-A-Lot already operates 10 other stores in New Jersey, and the opening of the Atlantic City is the 11^th in this region. The company has given employment to 240 workers in the region.

Save-A-Lot stores, which offer goods at prices typically 40% less than other traditional grocery stores, started operations with a single store in 1977. It was acquired by Supervalu in 1992.

Save-A-Lot Food Stores operates through 1,300 stores in 39 states. The company is expanding aggressively in all parts of the US. In February and March 2012, Save-A-Lot opened three new stores in Tennessee, four in Pennsylvania, and three each in Ohio and New York.

We are pleased with SUPERVALU’s efforts to drive its retail operations primarily through new store development, addition of merchandise in existing stores and increasing the number of replacement food distribution centers. Supervalu plans to complete 55 to 75 store remodels in fiscal 2012. The retailer expects to open 160 ‘Save-A-Lot’ stores by fiscal 2012.

During fiscal 2012, the company added 83 new stores and remodeled 83 traditional store. It also upgraded its technology to drive productivity and added a number of customer-facing merchandising initiatives to help drive sales. The company expects to complete approximately 100 store remodels and add approximately 50 Save-A-Lot stores in fiscal 2013. The company plans to add 250 Save-A-Lot stores in the next five years.

However, identical store sales were negative in the fourth quarter of 2012 for the fourth successive year, resulting in loss of market share, which in turn, has weakened the competitive climate. Moreover, high inflation and stiff competition from Safeway Inc. (SWY) and Wal-Mart Stores Inc. (WMT) are matters of concern.

Currently, we have a long-term Neutral recommendation on SUPERVALU, which carries a Zacks #3 Rank (short term Hold rating).

Colgate-Palmolive is the industry leader in oral care and commands market-leading positions in several personal care product categories. Furthermore, a strong portfolio of globally recognized brands provides a competitive advantage to the company and strengthens its dominant position in the market.

Colgate-Palmolive recently posted a solid first-quarter 2012 with earnings per share and global net sales rising nearly 7% and 5%, respectively. The growth was primarily attributable to a 3.5% surge in pricing and global unit volume, partially offset by a 2% negative impact from foreign currency translations along with increased material and packaging costs.

The company now expects 4% - 7% growth in global unit volume, and gross margin expansion in the range of 75 to 125 basis points in fiscal 2012.

We believe the company’s strategy of focusing on innovations for developing new products regionally will facilitate it in enhancing its customer base while increasing market share.

Moreover, Colgate-Palmolive is focusing on acquiring businesses, which have the potential to generate higher top-line growth and margin. In line with this strategy, the company recently acquired the Sanex business. The company also divested its laundry detergent brands in Colombia. Colgate-Palmolive believes that these transactions will contribute 1% to earnings growth in fiscal 2012.

Further, Colgate-Palmolive recently sold $500 million worth of 10-year medium-term notes maturing in May, 2022 at a coupon rate of 2.30%, which is believed to be the lowest 10-year coupon rate. The company will use the funds to retire its old commercial paper. We believe the transaction will enhance the company’s financial flexibility while retaining focus on future growth prospects.

However, the competitive dynamics in the household products industry have radically changed from the earlier emphasis on cost savings and manufacturing efficiencies to gaining market share. As a result, costs have increased with the rise in marketing and promotional expenditures, which we believe may weigh on its bottom-line growth.

Moreover, due to its exposure to international markets, Colgate-Palmolive remains prone to currency fluctuation. The weakening of foreign currencies against the U.S. dollar may require the company to either raise prices or contract profit margins in locations outside the U.S. An increase in product price may have a direct impact on consumer demand.

Above all, Colgate-Palmolive operates in an intensely competitive environment. The resurgence of archrival Procter & Gamble Company (PG) has signaled new challenges. Global competitive conditions have also intensified, and Colgate-Palmolive is facing strong competition in China, Russia, India, Hong Kong, Brazil and Mexico.

The Metria solution provides continuous link between patients and health care providers using mobile, cloud-based and sensor technology of Proteus Biomedical, Inc. These wearable sensors monitor the patients’ health conditions, track them and bring them to the health care facilities. These sensors help in preventing disease before its onset.

The new version of the solution will be incorporated within the Preventice Care Platform and used for remote monitoring in hospitals and health care systems in the U.S. These mobile health applications also help in improving the doctor-patient relationship as they remain connected constantly and can share all valuable information. 

About Preventice, Inc.

Preventice, Inc. is a privately owned leading developer of mobile health applications and remote monitoring systems connecting mobile, home-based, and on-premise technologies to deliver continuous patient care anywhere. The solutions of Preventice help in creating constant connection between health care providers, life science companies and their patients along with sharing critical information.

Avery’s Other Partnership in Medical Solutions

Earlier in 2011, Avery entered into a collaboration with the leader in intelligent medicine and mobile health products, Proteus Biomedical, Inc. The team focused on producing patch-based wearable sensors for consumer, home health care and remote medical applications.

Our View

The Metria solution is a revolutionary application in the field of medical sciences. The strategic alliances of Avery with the leading companies will help it in emerging as a leader in the burgeoning areas of consumer and remote patient monitoring.  

However, Avery is struggling with higher raw material costs and low volumes. It is trying to combat them by implementing price increases and cost reduction initiatives. The company may face intense competition from its peers like Bemis Company Inc. (BMI) and 3M Co. (MMM) if it tries to pass on the higher raw material prices to the customers by increasing the prices.

The stock retains a short-term Zacks #3 Rank (Hold). We have a long-term Underperform recommendation on Avery.

The Commercial Lines business is gradually witnessing improving market conditions after several years of significant competitive pressure. The segment has witnessed top-line growth in fiscal 2011 with a 3% rise in net premium, compared to a decline of 1% and 26% in 2010 and 2009, respectively. This improvement came on the back of company’s initiatives as well as a gradual increase in insurance rates.

The company has implemented predictive analytics to improve its pricing precision, while leveraging local relationships with its agents at the same time.  We expect moderate top-line growth, as competitive pressure will somewhat offset moderate price increases.  

Cincinnati’s Personal Line segment has been underperforming over the past few years. However, with new business gains, strong retention levels and rate increases, the segment is back on track witnessing premium growth.

The company’s investments in pricing precision and technology and new agency appointments are positively impacting the segment, thus helping it to produce a narrower loss ratio. Going forward, with an improvement in the personal business market, the company will see increased premium growth.

Cincinnati’s Excess and Surplus line is also performing well. Despite a soft market environment, the segment has been able to achieve rate increases in the last 16 months. We expect the trend to continue, given the improving excess and surplus lines market.

A strong relationship with its agencies also bodes well for Cincinnati. The company made 133 new agency appointments during fiscal 2011 and expects to add 130 agencies during the next fiscal. We believe that the increasing number of agencies will drive premium growth in the future.

However, Cincinnati faces some headwinds in the form of a low interest rate environment and exposure to catastrophes. While the low interest rates have curbed investment income, they have also adversely affected the company’s Life Insurance business, which sells interest sensitive products.

Moreover, Cincinnati’s geographic concentration ties its performance in the Midwest region, which is prone to catastrophes. As such, the company’s operations are prone to catastrophe losses, imparting volatility to the earnings.

Nevertheless, Cincinnati’s solid capital position with low reliance on debt gives it an inherent strength. It also remains a favorite with value investors, with its track record of increasing dividend for the past 51 years.

Based in Fairfield, Ohio, Cincinnati Financial closely competes with Assurant Inc.  (AIZ), W.R.Berkely Corp. (WRB), The Travelers Companies Inc. (TRV). The company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Per the agreement, McDermott will be involved in the construction of the new Ayatsil-B drilling platform located in the Ayatsil field in the Bay of Campeche. The scope of the contract includes engineering, procurement, fabrication, pre-commissioning, load-out and sea fastening of the Ayatsil-B eight-leg jacket and deck.

McDermott will also execute the transportation and installation analysis of the structure and impart necessary training to the Pemex staff for facility operation and maintenance.

The agreement, financial terms of which were not disclosed, will be taken into account in McDermott's second quarter 2012 backlog. The contract work is expected to be completed during the third quarter of 2013.

McDermott management remains highly confident about the execution and performance of this contract that came in after successful completion of the Pemex Kuil-A project.

Houston, Texas-based McDermott primarily serves the worldwide offshore oil and gas field development activities, including front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems.

Given its geographic footprint in high-growth regions, technology leadership and efficient execution skills, the company is poised to benefit from strong industry fundamentals for offshore construction activities through 2012 and beyond.

We believe order flow and backlog for McDermott’s products and services will continue to be healthy and trend higher in the near-to-medium term.

However, due to McDermott’s exclusive focus on the offshore oil and gas business and the tentative commodity price outlook, we harbor a cautious sentiment for the company over the next few quarters. We further believe that the transfer of the ‘Power Generation Systems’ and ‘Government Operations’ segments into a separate, independent and publicly traded entity The Babcock & Wilcox Company (BWC) has left McDermott with a less diversified business, thereby heightening its risk profile.

McDermott currently retains a Zacks #3 Rank, which translates into short-term Hold rating. We are also maintaining a long-term Neutral recommendation on the stock.

The multi-center, dose escalation study will evaluate the candidate’s safety and preliminary tolerability among other endpoints.  The use of predictive biomarkers will also be explored.

AVEO and Biogen Idec International GmbH, a subsidiary of Biogen Idec Inc. (BIIB), have a strategic alliance to develop and commercialize ERBB3 antibodies for the treatment of cancer. AV-203 is a monoclonal antibody which targets the receptor ERBB3. ERBB3 is a fresh and promising strategy for potentially treating cancer. The pipeline candidate was developed through AVEO’s Human Response Platform.

Other pipeline candidates at AVEO include tivozanib (renal cell cancer) and ficlatuzumab (non-small cell lung cancer). While ficlatuzumab is in phase II studies, AVEO is preparing to file its new drug application (NDA) for tivozanib in the third quarter of 2012. Other indications for which tivozanib is being evaluated include colorectal cancer and breast cancer, which are currently in phase II and I development, respectively.

Notably, in early 2012, TIVO-1, a phase III clinical study that evaluated the efficacy and safety of tivozanib, successfully met the primary endpoint.

Our Take

We are pleased with the pipeline progress at AVEO. We expect investor focus to remain on the filing of an NDA for tivozanib. Approval of tivozanib will be a major milestone for the company. We currently have a Neutral recommendation on AVEO in the long run. The company carries a Zacks #3 Rank (Hold rating) in the short run.

Fitch said that Goldcorp’s portfolio has got substantial reserves with impressive mine lives. More importantly, these reserves are mostly located in areas where there is low geopolitical risk.

Also, the ratings agency holds Goldcorp’s credential of being one of the world’s lowest cost senior producer of gold in good light. Moreover, the company is highly focused on growing its business both organically and inorganically, a strategy which will help it deliver shareholder value in the long run.

In addition, the company has got adequate liquidity on its books. It had cash and cash equivalents of $1.4 billion as on March 31, 2012. Its credit line of $2 billion, which is set to mature in November 2016, was completely untapped.

Fitch noted that Goldcorp’s strong liquidity position will enable it to pursue its large capital spending program. The agency also said that the company might go free cash flow negative in 2012 as it incurs capital expenditure. But the metric is expected to get positive again in 2014 assuming gold sells at $1,200/oz from 2013.

First Quarter Revisited

Goldcorp had posted disappointing results in the last reported quarter. It earned 50 cents a share on an adjusted basis in first-quarter 2012, which missed the Zacks Consensus Estimate of 54 cents. The company witnessed an 11% year-over-year jump in revenues, which rose to $1.35 billion in the quarter, but came in short of the Zacks Consensus Estimate of $1.46 billion.

Also, reported net income dropped 26% to $479 million (or 59 cents per share) in the quarter from $651 million or 82 cents reported a year ago.

Puts and Takes

Goldcorp is among the leaders in its industry and it anticipates increasing its production by 70% over the next five years. The company’s expansionary moves, exploration projects and increasing gold prices are expected to act as tailwinds.

Due to its unhedged position to gold prices, Goldcorp is well-positioned to reap benefits from rising gold prices in the long-term. The high quality of its assets and the low cost nature of its operations are also key growth drivers.

However, we believe that the company’s near-term prospects might remain muted due to its aggressive acquisition strategy. Goldcorp will need to integrate the acquisitions swiftly to maintain or increase its production capabilities. In addition, higher interest rates and excessive increase in gold production might push down prices, hurting Goldcorp’s margins in the process.

Neutral on Goldcorp

We currently have a long-term Neutral recommendation on Goldcorp. The company, which competes with Barrick Gold Corporation (ABX) and Newmont Mining Corp. (NEM), retains a Zacks #3 Rank, indicating a short-term Hold rating.

Featured Post

Mo's STOCKS THAT RAKE LIST

Big seventh week listing the best and hottest stocks. A decision was made to rename the list from 'The Hot Momentum Stock list' to 'Stocks that are Raking list'. This opens the door to stocks that are not normally categorized as momentum stocks but now to all stocks that are....raking it.

Why buy stocks that are high? Buy high, sell even higher. The answer is very obvious. In a bull market, these stocks have shown conviction. They are proven winners. The best pro football, basketball, baseball teams pay TOP dollar to play the best players! They are proven winners and provide the teams with even better possibilities of winning.

Realtors and top companies pay TOP dollar for the best real estate because it provides the best opportunity and safety for growth. Top and the very best strong companies pay TOP dollar for the best CIO's because they provide the company the TOP opportunites to win in their industries. In contrast, the local yokels have been brainwashed since grade school to buy bargins and things on sale. Those folks are still poor!

Onward to the best stocks today based on PRICE alone!

The list does not take into consideration fundamentals, technical analysis, sentiment or human behavior factors. The listing is based on factual and demostrated price data (actual price action) except for applying a weight factor for stocks that pay dividends.

The factors that make up the list pertain to the following:

• % of weeks (over 10) in which the stock showed gains (for example a stock up 10 of 12 weeks is 83.33%)
• Number of weeks that the stock gained in the last four weeks
• How well the stock has performed in the last two weeks
• % stock share gain since the beginning of the year
• % stock share gain the last four weeks
• A factor is applied for stocks that pay dividends and the % yield

The listing for this week: The TOP 15 .

1. SHW (Sherman-Williams) a perfect example. This was a number one stock when we started the LIST 7 weeks ago. The whispers were that it was too high. It's now at a new high even with the May stock market downturn. SHW has painted itself intra-day for yet another new high. SHW has been the No 1 ranked stock since inception of this list. UP 22 out of 23 straight weeks!
2. HAIN (Hain Celestial). In a major market downturn, HAIN is hitting intra day highs. The organic food company was on a tear before Whole Foods reported blow out earnings. HAIN just continues to tear it up. UP 14 out of 15 STRAIGHT WEEKS..SERIOUSLY in a down market on top of that!
3. The Smart Telephone companies. If you don't own a 'smart phone' you perceived as being out of it..nothing.. You're considered stale, old meat, not with it. The two major companies running this, selling the android and iphone phones in the zillions are ATT (T) and Verizon (VZ) and their stock is rocking.
4. MNST (Monster Beverage). Monster hitting new hights. Up 11 out of last 14 weeks.
5. PETM (PetsMart). Stock in raging torrid mode. Blasting away to new highs. UP swing upwards this month.
6. TSCO (Tractor Supply Co). On track again. Testing recent highs. Up 11 of last 14 weeks.
7. Home Builders (TOL, LEN, DHI). As we blogged on the last day of April, it's time for home builders to enter a new phase bull market. A big week for all these stocks in a very negative down market last week.
8. CHD (Church & Dwight) New to list. This foggy ole stock just keeps on trucking. UP 10 of last 11 weeks.
9. ATHN (Athenahealth). New to list. Hitting new highs. Stock in rage mode. A break-out stock.
10. MTS (MedcoHealth Solutions). New to list. On a rage. Hitting highs. UP 8 out of last 10 weeks..
11. KMB (Kimberly-Clark). Still trucking. UP 11 of last 12 weeks.
12. CL (Clorix). Nice and steady. Heading towards 100 share price.
13. ABT. Abbott. Stock gonna split into two companies later this year. Stock rocking. Up this week.
14. PATK (Patrick Industries) New this week. Stock up 55% in one month. Up over 400% since beginning of year.
15. MDVN (Medivation) hitting highs each and every week for last five weeks

 . 

Other Notes:

Any stock down for two weeks automatically is delisted.

Any stock down for one week is on probation and could be taken off the list in lieu of a 'stronger' stock

Any stock can be delisted for any reason if a better candidate comes forward

The most recent picks by «MightyMo» are:
A buy rating on ARG, and
a buy rating on DHI, and
a buy rating on VAC.

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The neutral view on Clorox stems from the company’s solid third-quarter performance in a difficult economy and despite higher input costs, the benefits of its ongoing cost saving initiatives and price increases, encouraging forward guidance and intensive capital investments, offset by intense competition, a highly leveraged balance sheet and foreign currency effects.

Despite macroeconomic headwinds and higher input cost, Clorox posted third-quarter 2012 earnings of $1.04 per share that beat both the Zacks Consensus Estimate and the prior-year period earnings by a penny. The encouraging results were driven by benefits from cost saving initiatives and price increases. Driven by volume growth and contributions from new businesses acquired, sales increased 7% from the prior period.

Based on robust quarterly performance, management now expects sales growth of 4% in fiscal 2012, up from 2% to 4% forecasted earlier. Clorox has also established long-term financial goals to measure its progress. These goals include 3% to 5% annual sales growth before acquisitions, and 75 to 100 basis points of annual improvement in operating margin.

Additionally, the company has plans to carefully manage the growth of its asset base. Clorox is cautiously managing its asset value and focusing on realizing double-digit economic profit growth and free cash flow of 10% of net sales in fiscal 2012.

Further, the company is constantly looking for acquisitions and alliance opportunities to boost its market share and product portfolio. Clorox is making intensive capital investments in information technology systems and capabilities, particularly in the international market and R&D facilities to boost productivity while providing platforms for growth, product innovation and cost savings. The company believes that these initiatives will begin delivering benefits later in fiscal 2014 and beyond.

On the flip side, has a highly leveraged balance sheet with long-term debt of $1,570 million at the end of first quarter of fiscal 2012. The high debt level may adversely affect the company’s financial flexibility as well as the ability to pursue acquisitions or expand operations organically.

The company faces intense competition from well-established consumer product companies, both in the U.S. and international markets. Clorox competes head-to-head with Colgate-Palmolive Company (CL) and Procter & Gamble Company (PG).

Moreover, the company’s performance may be affected by its significant presence in international market (approximately 21% of revenue), which exposes it to unfavorable foreign currency translations, economic or political instability and other governmental actions on trade and repatriation of foreign profits.

Currently, Clorox has a Zacks #4 Rank, implying a short-term Sell rating.

The neutral view on Clorox stems from the company’s solid third-quarter performance in a difficult economy and despite higher input costs, the benefits of its ongoing cost saving initiatives and price increases, encouraging forward guidance and intensive capital investments, offset by intense competition, a highly leveraged balance sheet and foreign currency effects.

Despite macroeconomic headwinds and higher input cost, Clorox posted third-quarter 2012 earnings of $1.04 per share that beat both the Zacks Consensus Estimate and the prior-year period earnings by a penny. The encouraging results were driven by benefits from cost saving initiatives and price increases. Driven by volume growth and contributions from new businesses acquired, sales increased 7% from the prior period.

Based on robust quarterly performance, management now expects sales growth of 4% in fiscal 2012, up from 2% to 4% forecasted earlier. Clorox has also established long-term financial goals to measure its progress. These goals include 3% to 5% annual sales growth before acquisitions, and 75 to 100 basis points of annual improvement in operating margin.

Additionally, the company has plans to carefully manage the growth of its asset base. Clorox is cautiously managing its asset value and focusing on realizing double-digit economic profit growth and free cash flow of 10% of net sales in fiscal 2012.

Further, the company is constantly looking for acquisitions and alliance opportunities to boost its market share and product portfolio. Clorox is making intensive capital investments in information technology systems and capabilities, particularly in the international market and R&D facilities to boost productivity while providing platforms for growth, product innovation and cost savings. The company believes that these initiatives will begin delivering benefits later in fiscal 2014 and beyond.

On the flip side, has a highly leveraged balance sheet with long-term debt of $1,570 million at the end of first quarter of fiscal 2012. The high debt level may adversely affect the company’s financial flexibility as well as the ability to pursue acquisitions or expand operations organically.

The company faces intense competition from well-established consumer product companies, both in the U.S. and international markets. Clorox competes head-to-head with Colgate-Palmolive Company (CL) and Procter & Gamble Company (PG).

Moreover, the company’s performance may be affected by its significant presence in international market (approximately 21% of revenue), which exposes it to unfavorable foreign currency translations, economic or political instability and other governmental actions on trade and repatriation of foreign profits.

Currently, Clorox has a Zacks #4 Rank, implying a short-term Sell rating.

Incyte is a Wilmington, Delaware-based drug discovery and development company focused on oral compounds to treat inflammation and cancer.

We are pleased by the November 2011 U.S. approval and subsequent launch of Jakafi for myelofibrosis (MF). Even though the target population for MF is not very high, we believe that the experience gained from marketing Jakafi should be helpful for future product launches.

The European approval of the drug (to be marketed as Jakavi) for the MF indication is on track with the Committee for Medicinal Products for Human Use (CHMP) recommending its approval. The positive opinion has triggered a milestone payment of $40 million from partner Novartis (NVS).

The amount is expected to be received shortly. A further $60 million milestone payment would be due to Incyte following the achievement of reimbursement and pricing approval in certain E.U. nations by Novartis.

Incyte also has a collaboration with another established player, Eli Lilly (LLY). We believe its association with big pharmaceutical companies will bolster the company’s financial position and experience.

However, apart from Jakafi for the polycythemia vera indication, the other candidates are several years away from hitting the market. Any hiccup in their development process will weigh heavily on the stock.

We note that Incyte suffered a setback with its sheddase inhibitor program when the development of INCB7839 was halted for metastatic breast cancer. Incyte had faced pipeline setbacks earlier, as well. The company terminated the development of a CCR5 antagonist compound INCB9471 (INCB15050) as a once daily oral treatment for HIV/AIDS.

Moreover, since Jakafi was launched for MF only in November 2011, we prefer to adopt a wait-and-watch stance regarding its sales ramp up.

Incyte is a Wilmington, Delaware-based drug discovery and development company focused on oral compounds to treat inflammation and cancer.

We are pleased by the November 2011 U.S. approval and subsequent launch of Jakafi for myelofibrosis (MF). Even though the target population for MF is not very high, we believe that the experience gained from marketing Jakafi should be helpful for future product launches.

The European approval of the drug (to be marketed as Jakavi) for the MF indication is on track with the Committee for Medicinal Products for Human Use (CHMP) recommending its approval. The positive opinion has triggered a milestone payment of $40 million from partner Novartis (NVS).

The amount is expected to be received shortly. A further $60 million milestone payment would be due to Incyte following the achievement of reimbursement and pricing approval in certain E.U. nations by Novartis.

Incyte also has a collaboration with another established player, Eli Lilly (LLY). We believe its association with big pharmaceutical companies will bolster the company’s financial position and experience.

However, apart from Jakafi for the polycythemia vera indication, the other candidates are several years away from hitting the market. Any hiccup in their development process will weigh heavily on the stock.

We note that Incyte suffered a setback with its sheddase inhibitor program when the development of INCB7839 was halted for metastatic breast cancer. Incyte had faced pipeline setbacks earlier, as well. The company terminated the development of a CCR5 antagonist compound INCB9471 (INCB15050) as a once daily oral treatment for HIV/AIDS.

Moreover, since Jakafi was launched for MF only in November 2011, we prefer to adopt a wait-and-watch stance regarding its sales ramp up.

LME is considering the offers of the two bidders and will take its final call after taking into account the companies’ ability to develop LME’s business, the viability of their plans as well as the bid price. Both ICE and HKEC are said to have placed bids of over £1.0 billion for the deal, although the prices are open to adjustments.

However, it is expected that the two competing exchanges will meet the shareholders of LME before the final decision is taken. The bidders require the support of shareholders owning at least 75% of LME’s shares. The final decision is expected to take a few more weeks.

CME’s successful takeover of LME would have mellowed the competition in the metal exchange market as the exchange directly competes with LME for US copper contracts and also has an expanding steel trading business, while neither ICE nor HKEC offer metal contracts at present. The purchase would have significantly boosted the competitive strength of CME’s metal exchange, Comex.

Nevertheless, HKEC provides LME with opportunities to expand in China, which is the largest consumer of metal, as well as the chance to offer clearing services in Chinese Renminbi. On the other hand, ICE boasts a large clientele in Asia, who hold the potential to be prospective customers for LME’s metal contracts.

LME is highly sought after as it is the largest metal futures exchange in the world. It offers global benchmark futures and options contracts on base and other metals, including aluminium, aluminium alloy, NASAAC (North American Special Aluminium Alloy), cobalt, copper, lead, molybdenum, nickel, steel billet, tin and zinc. The exchange traded metal contracts worth $15.4 trillion last year.

Shareholders of LME include a large number of renowned investment banks, such as JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS), Barclays Plc (BCS) and Citigroup Inc. (C).

CME currently carries a Zacks #5 Rank, which implies a Strong Sell rating for the short term. We maintain a long-term Neutral recommendation on the shares.

OpenX is the leading provider of digital advertising technology, which enables the firms to manage and maximise their advertising revenue.

Prior to OpenX, Cadogan served at Yahoo in a number of executive positions, including Senior Vice President of global advertising marketplaces. He has also served in leadership positions at Overture Services and was a management consultant at McKinsey & Company and The Boston Consulting Group.

Further, Acxiom also announced that John Battelle will be nominated as a candidate for election to the board at the annual stockholders meeting in August. John Battelle is the founder and executive chairman of Federal Media Publishing.

Meanwhile, earnings estimates have moved down marginally although the company reported better-than-expected results for the fourth quarter of fiscal 2012.

For fiscal 2013, Acxiom expects to undergo several management and investment changes, which would pace up yields substantially.

Earlier, in March 2011, John A. Meyer resigned as the CEO, President and a Director of the Board. Scott Howe was appointed as the CEO and President on July 26, 2011. Also, CFO Christopher W. Wolf resigned on June 1, 2011 and on January 11, 2012, he was replaced by Warren Jenson, who was also appointed as the Executive Vice President of the company.

Changes in top management positions of a company usually have a pervasive impact on its overall functioning, goals and investor perception. It remains to be seen how the new management charts a growth trajectory for the company.

We continue to maintain a Neutral recommendation on ACXM. Our recommendation is supported by Zacks #3 Rank, which translates into a short-term rating of Hold. 

MetLife outlined four initiatives to be the base of all its strategic moves. The initiatives include refocus on the U.S. business, construct Global Employee Benefits business, increase its emerging markets presence, adopt a more customer-centric business model and build a global brand.

MetLife desires to attain return on equity (“ROE”) that would be in the range of 12-14% by 2016 compared to 10.3% reported in 2011. The company also expects to improve its risk profile, reallocate its product mix from capital-intensive products to protection products in order to generate more steady operating earnings, which in turn will help achieve its ROE aspiration.

MetLife is striving toward generating at least 20% of its operating earnings from the emerging economies. It stated in its guidance for 2012 that it expects the consolidated operating earnings to be in the band of $5,140 - $5,570 million or $4.80 - $5.20 per share. It also mentioned that operating earnings for the Asian segment is expected to be in the range of $1,110 - $1,210 million and the EMEA segment in the range of $275 - $325 million.

The company also intends to increase its free cash flow as well as achieve a sound cash position. It also expects to achieve net pre-tax expense savings of about $600 million. The company seeks to improve its growth rates through more mergers and acquisitions. It also aims to reduce its attrition rate and control its expenditures.

The Zacks Consensus Estimate for MetLife stands at $5.21 per share for 2012 an increase of 3.78% over 2011. This is backed by MetLife’s strong capital position, ample liquidity and its leading market position Besides MetLife holds a diminishing risk-profile with improved financial leverage.

MetLife competes closely with Prudential Financial Inc. (PRU), which also expects to expand its presence in the emerging markets. It has recently submitted its bid for buying the entire Asian life insurance assets of ING Groep (ING) that is being auctioned out to repay a debt owed to the Dutch government.

The company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain a long-term Neutral recommendation on the stock.

The company noted that it will cut the costs on the project for the 2012-2013 period and now expects to spend about $440 million, significantly down from its previous outlook of $1.5 billion. As per the report, Newmont is also considering whether it will go ahead with the project as the mine faced protests by locals with concerns that it will replace the existing alpine lakes with artificial reservoirs, thereby causing pollution.

The company is evaluating the mine plan after it received recommendations to by the Peruvian government and an independent panel of experts, and is expected to respond to the experts' review in June 2012.

Separately, the company has maintained its erstwhile guidance of attributable gold production of approximately 5.2 million ounces for 2013, and expects that this will rise to 7 million ounces by 2017.

Based in Colorado, Newmont Mining Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia/New Zealand, Indonesia and Ghana. It competes with the likes of AngloGold Ashanti Ltd. (AU), Barrick Gold Corporation (ABX) and Gold Fields Ltd. (GFI).

Newmont is the only gold company included in the S&P 500 Index and Fortune 500. It was the first gold company included in the Dow Jones’ world Sustainability Index.

We currently have a long-term Neutral recommendation on Newmont, which is in line with a short-term Zacks #3 Rank (Hold).

Viramune is approved for HIV-1 infection in combination with antiretroviral (ARV) treatment. According to IMS Health, Viramune generated U.S. revenues of approximately $116.6 million for the 12 months ending March 31, 2012.

Apart from Mylan, Prinston Inc., Hetero Labs Ltd III, Strides, Cipla and Aurobindo Pharma have gained approval to market their generic versions of Viramune.

Just a few days ago, Mylan Inc received final approval from the FDA to launch its generic versions of Plavix (clopidogrel), 75 mg and 300 mg. Plavix is sold by Bristol-Myers Squibb Co. (BMY) and Sanofi (SNY) and is approved for patients who have had a heart attack or stroke recently, or suffer from a partial or total blockage of an artery (peripheral artery disease).

According to IMS Health, Plavix generated U.S. revenues of approximately $6.7 billion for the 12 months ending March 31, 2012.

As of May 23, 2012, the company had 173 abbreviated new drug applications (ANDAs) pending clearance by the FDA, targeting $92 billion in sales annually. Mylan believes that about 38 of these ANDAs are first-to-file opportunities, representing approximately $25.5 billion in branded sales. The revenue figures are, as per IMS Health, for the 12 months ending Dec. 31, 2011.      

Our Recommendation

We are encouraged by Mylan’s geographic reach and product depth along with a robust generic product pipeline. However, we are concerned about the company’s lackluster performance in Europe, the Middle East and Africa (EMEA) region.

Additionally, with most large branded drugs due to lose patent exclusivity within 2017-2018, we have little visibility on the growth prospects for generic companies like Mylan beyond that timeframe.

Thus, we prefer to remain on the sidelines and have a Neutral recommendation on Mylan. The stock carries a Zacks #3 Rank (Hold rating) in the short term.

In a bid to expand in China, leading retailer Macy’s Inc (M) announced its intention to tap the growing Chinese market via an online deal. The company will start retailing its private brand assortment through a China-based e-commerce site ‘omei.com.'

The Macy’s section in omei.com will start retailing I.N.C. men’s and women’s fashion apparels in spring 2013. Customers placing orders via omei.com will get their purchase delivered locally through Macy’s services in China and the orders placed via macys.com by Chinese customers will be delivered through the company’s services in the United States.

The e-commerce site is operated by VIPStore Co. Ltd, in which Macy’s has made an equity investment of $15 million. As a result, Macy’s now holds a minority stake in the China-based company. Other venture capitalists, including Intel Capital, have also put in some money.

We consider the deal significant because it will also assist in understanding consumer behavior with regard to Macy’s products.

VIPStore considers the deal to be advantageous as they will trade with one of the leading U.S. retailers, which is likely to help them gain experience and enhance customer satisfaction.

Macy’s, which operates 840 departmental stores and runs two online sites: macys.com and bloomingdale.com started trading online in more than 100 nations, including China through a deal with an international e-commerce provider FiftyOne.

Conclusion

In an attempt to increase sales, profitability and cash flows, Macy’s has been taking steps such as the integration of operations, consolidation of divisions as well as development of e-commerce business and online order fulfillment centers.

Macy’s has sustained focus on price optimization, inventory management, merchandise planning and private label offering, which positions it to drive traffic, meet customer demand and improve in-store shopping experience.

Therefore, we retain our long term Outperform recommendation on Macy’s. However, Macy’s, which faces stiff competition from J. C. Penney Company Inc.(JCP), carries a Zacks #3 Rank that translates into a short-term Hold rating for the next 1-3 months.

Avnet will also offer its EMC partners and small-to-medium (SME) clients several of its expert services, such as private cloud networking solutions and virtual desktop infrastructure services through its Data Center Lifecycle Services platform.

The newly introduced program, particularly designed for Intel servers, will integrate EMC’s back-up solutions, Brocade and Cisco’s cloud-based solutions, Microsoft’s technological applications and RSA’s safety solutions. Additionally, other data center solutions in the field of computation, technology, storage and security shall also be rendered by Avnet under this program.

Avnet would facilitate its channel partners to use the cloud-related opportunity, which is an effective service offering, designed specially to take on cloud computing. Furthermore, they are likely to earn additional profit from Avnet’s superior services through improved sales.

The company’s comprehensive range of products and services helped it become a leading distributor of electronic components and computer products. Earlier, Avnet’s Technology Solutions reported revenues of $2.52 billion in the third quarter of fiscal 2012, down 8.1% from the year ago quarter. However, we can still be optimistic about a better segmental performance in Avnet’s upcoming quarter results.

The company pertains to an industry, where ominous competition is prevalent. Hence, Avnet should stay cautious of big players, such as Wesco International Inc. (WCC), Arrow Electronics Inc. (ARW) and Anixter International Inc. (AXE) in the industry.

The current Zacks Consensus Estimates for the fourth quarter of fiscal 2012 and for fiscal 2012 are $1.03 and $4.18, respectively. The company currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. However, we are maintaining a long-term Neutral recommendation on the stock.

At the same time, the company announced that it has initiated marketing efforts for 10 held-for-sale properties (worth $300 million) in diverse locations such as Baltimore, Washington, D.C., Philadelphia and Long Island, NY as part of its portfolio restructuring program.

Home Properties acquired the erstwhile ‘Hunter's Crossing’ presently renamed as ‘The Manor East,’ in Leesburg, Virginia, for $16.2 million. The acquired property consists of 15 three-story garden-style buildings (164 units) with pitched roofs.

The apartment community has 75 one-bedroom units and 89 two-bedroom units, with the average unit size being 822 square feet. The property offers luxury amenities such as a swimming pool and fitness center.

Besides its lucrative features, the property is strategically located in close proximity to major employment centers and corporate campuses in the region. At the close of the transaction, the property was 98.0% occupied at monthly rents averaging $1,050 per unit. Home Properties further intends to spend approximately $2.8 million during the first three years of its ownership, in addition to normal capital expenditures, to upgrade the property.

Home Properties also purchased ‘Woodway at Trinity Center’ in Centreville, Virginia, for $96.0 million in cash. The acquired property consists of 18 three-story wood-frame buildings (504 units) with concrete slab and pitched roofs.

The apartment community has 252 one-bedroom units and an identical number of two-bedroom units, with the average unit size being 908 square feet. The property offers luxury amenities such as a swimming pool, business center, and fitness center.

The property is located in close proximity to major employment centers and corporate campuses in the region with easy access to transportation facilities. At the close of the transaction, the property was 97.2% occupied at monthly rents averaging $1,377 per unit. Home Properties intends to spend an additional $3.9 million during the first three years of its ownership along with normal capital expenditures, to upgrade the property.

Home Properties primarily operates along the East Coast of the U.S. The key target markets of the company include New York-Long Island/New Jersey, Boston, Washington D.C./Northern Virginia, Baltimore, Philadelphia, and Chicago. The company typically invests $200 million - $300 million annually to acquire multifamily communities and fuel its growth engine.

Home Properties largely focuses on the relatively stable markets in the suburban region of major metropolitan areas that have significant barriers to new construction, a favorable supply/demand relationship, high single-family home prices, stable job growth, and reduced vulnerability to economic downturns.

We presently have a Neutral recommendation on Home Properties, which currently has a Zacks #3 Rank that translates into a short-term Hold rating. We also have a Neutral recommendation and a Zacks #3 Rank for BRE Properties Inc. (BRE), one of the peers of Home Properties.

Company Description

The Brink's Company engages in the provision of secure transportation, cash logistics, and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations. Its services include cash-in-transit armored vehicle transportation; automated teller machine services, including cash replenishment, monitoring and forecasting capabilities, deposit pick-up, and processing services. The Brink's Company was founded in 1838 and is headquartered in Richmond, Virginia.

Brinks Tops Estimates in Five of Seven Quarters

Brinks topped the Zacks Consensus Estimate in five of the last seven quarters. The average surprise over the last seven quarters was $0.055 above the Zacks Consensus Estimate which works out to be an average beat of more than 13%. As a result of the positive earnings surprises, the stock has moved higher by an average of 1.5% following the earnings releases.

The largest price movement in the stock came the day after the company reported the March 2012 quarter. Brinks reported a topline result of $967 million, in line with the Zacks Consensus Estimate and up 6% from the year ago period. EPS of $0.58 was $0.19 higher than the $0.39 Zacks Consensus Estimate and the stock moved higher by about 18%.

Follow Brian Bolan on twitter at @BBolan1

Brinks Has Also Missed

On two occasions, Brinks has missed the Zacks Consensus Estimate. The June 2011 quarter saw a 6% miss while the December 2011 saw an 11% miss. Only the December 2011 quarter saw the stock trade lower in the session following the release. Brinks traded lower by almost 17% as a result of the miss.

Brinks Sees Estimates Moving Higher

Brinks has seen earnings estimates move higher following the recent positive earnings surprise. The Zacks Consensus Estimate for 2012 was as low as a loss of $2.05 in March 2012 and has since moved higher to $2.32.

Valuation

Brinks valuation is something value investors would like so aggressive growth investors will probably love it. Its trailing and forward PE trades at a discount to the industry average, as does its price to book multiple and its price to sales multiple. With all the metrics at a discount, one only has to look at the two recent earnings disappointments to see why the stock only trades at 10x forward earnings.

The Chart

A quick look at the price and consensus chart shows a drastic drop back in late 2008 as the financial crisis put doubt in the minds of many that there would be a need for physical cash. The crisis has done considerable damage as the stock has not recovered at all since then. The growth of earnings over the last few years has not yet reached the stock. As investors begin to realize that estimates are increasing it is likely that we see price appreciation. Brinks is a Zacks #1 Rank (Strong Buy).

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service

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BRINKS CO THE (BCO): Free Stock Analysis Report
 
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST If you are strictly a stock investor, your investment strategy has now turned to shorting stocks. Of course, when shorting a stock you have to deal with the disadvantage of a short position - unlimited risk. However, if you trade options, you will find that there are several strategies which will profit from a declining stock price but have a defined maximum risk.

A Bear Put Spread is one of those option strategies that will give you a defined maximum risk in return for a defined maximum gain.

What is a Bear Put Spread?

When a Put is traded, there is a potential gain that is in direct proportion to the drop in value of the underlying stock. However, the potential loss could be the entire premium that was paid for the Put. A Bear Put Spread is a refinement of the standard purchase of a Put. It will decrease the amount of premium that is at risk.

With a Bear Put Spread, the amount of the potential loss is decreased but the tradeoff is that the potential gain will be limited. It is constructed by buying a Put which will profit from a decline in the underlying stock and, at the same time, selling a Put with the same expiration date but with a lower strike price. The short Put will offset some of the cost of the long Put. This trade will require a net cash outlay (a debit trade) since the amount received from the sale of the Put will be less than the amount paid for the long Put.

The typical Bear Put Spread is created when you buy in-the-money Puts and sell out-of the-money Puts.

As an example, I am analyzing Cognizant Technology Solutions (CTSH), which is trading at $59.63. If my analysis indicates that the stock could continue to drop but is not likely to drop lower than $55, I can open a Bear Put Spread by buying the $60 Jun Put for $2.75 and selling the $55 Jun Put for $0.95, giving a net cost of $1.80 per share. The calculations for one contract are:

Buy Jun $60 Put: -$275.00
Sell Jun $55 Put: +$95.00
Net Cost: $180.00

The $60 Put is bought because I believe the stock will continue to go down. The $55 Put is sold because I think the stock will not go below this price. So, for each contract, the cost is $180 instead of the $275 that would have been paid for only the long Put.

To make the optimum trade using a Bear Put Spread, a trader will estimate how low the stock price might go and decide how long it might take to drop to that price. In the above example, if I expected the CTSH to drop significantly lower than $55, I could sell a lower priced Put. But, at some point the lower premium that is received will make the credit from the sale of the option unprofitable. If I expected a significant drop in the stock's price (further than $55), a better strategy would be to trade only the long option.

Maximum Gain

The gain on a Bear Put Spread is defined by the strike prices that were selected. The maximum gain occurs when the stock price is at, or lower than, the short Put position - in this example $55. The maximum profit is calculated by the differences between the two strike prices less the premium and costs of initiating the trade. In the example this would be calculated as $60 minus $55, and then less the net premium of $1.80 for a total of $3.20 or $320 per contract.

This calculation assumes that the option position is eventually closed. One could, of course, exercise the long Put and be assigned the short Put, thus buying stock at a lower price and selling it at a higher price. However, it is usually best to just close the option positions.

Maximum Loss

The maximum loss is limited. It occurs when the stock price is above the long Put at expiration – in this example $60. In this case, both options decay to $0.00 and expire worthless. This means a loss of $180 for a single contract.

Of course, this assumes that there were no adjustments made to the trade after it was initiated. A savvy investor would not allow a losing trade to go to expiration. At some point between when the trade was initiated and the expiration, the trade could be closed out with a loss of less than the potential loss of $180 per contract.

Additional Factors to Consider

Expiration
Take special precautions if the position is held until expiration date. If the underlying stock is close to the strike price, it is not known for sure if the short position will be assigned until the following Monday. So, either close out the trade early or be prepared for having the assignment occur or not occur on Monday.

Early Assignment
Early assignment is possible, but generally only when the options are deeply in the money. Even though there is a long position to cover the short position, if an assignment occurs there will be a necessity of financing the long position for one day. An ex-dividend date or other type of special event could upset expectations for profits. It is usually a good strategy to avoid most option strategies when the expiration goes beyond an ex-dividend date.

Time Decay
The effects of decay with a short position and a long position may offset each other. However, it will not totally offset the decay and the passage of time will affect the profitability to some extent, especially in the last week before expiration.

Summary

The use of a Bear Put Spread can be profitable when you expect a stock price to decline in the short term, but not to a great extent. This strategy involves buying a Put. But, because the stock is not expected to drop a great amount, the cost of the trade is lowered by selling a Put at a lower strike price. The tradeoff for having a lower amount at risk will be a reduction in the maximum profit.

A close evaluation of the placement of the two different strike prices will show a significant difference in the potential return and risk of a Bear Put Spread.

You can learn more about different option strategies by downloading our free options booklet: 3 Smart Ways to Make Money with Options (Two of Which You Probably Never Heard About). Just click here.

And be sure to check out our Zacks Options Trader.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

 
COGNIZANT TECH (CTSH): Free Stock Analysis Report
 
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST But today, I want to focus on options volatility and what it means for the options investor.

So let's start off with a definition:

Volatility measures the rate at which a security moves up and down. If a security is moving up and down quickly, volatility will be high. Conversely, if a security is moving up or down slowly, volatility will be low.

Options volatility is largely pinned to the underlying stock.

Traditionally, option traders look to buy options when volatility is low since premiums are lower.

And traders look to write options when volatility is high as option premiums tend to be higher.

Of course, the trick, like anything, is knowing what's high and what's low. If you're buying options with low volatility, you then want to see the volatility increase. And vice versa, when writing them.

But I do want to say, volatility is only one item in determining an option trade. Putting on an option solely because of volatility would be a mistake. But understanding how volatility affects your premium is important.

Volatility can also tip you off that something big might be getting ready to happen.

When option volatility is low, there is a high probability that a big move could be getting ready to occur.

Interestingly, when volatility drops and things are kind of quiet in the market, that's often when things heat up all of a sudden. The smart options trader will look to buy options in that environment - whether he's bullish or bearish - by buying calls or puts.

Because in addition to the option increasing in value due to moving in the right direction, it'll also increase in value because of the increase in volatility.

This happens because as volatility increases, there's an increased likelihood of rapid advances and larger price swings. That also means the higher the likelihood of an option trading in-the-money by expiration, the more it's worth to the buyer of an option.

And the writer of the option demands a higher premium for taking the other side of the trade because he's now taking more risk that he won't profit.

Looking at the other end of the spectrum, when volatility is high, or excessively high, the market is full of traders, and people are looking and expecting big things to happen.

Often times, that's when nothing happens, and the market falls into a trading range for while or slows down.

In this environment, volatility starts to shrink as the probability of large swings in the market shrinks. For the option writer, the risk of having an option he wrote get in-the-money by expiration has diminished. And for the option buyer, the chance of it getting in-the-money has shrunk as well.

As such, the writer demands less premium to cover his risk. And the purchaser pays less as his probabilities shrink as well.

So the buyer wants to see volatility trend up. And the writer wants to see the volatility trend down.

So for the writer, after volatility has trended up for a while, he will look to cash in on this by writing options as he expects volatility to cool down and maybe trend lower, increasing his chances of success.

A great way to think of volatility is this: if a security was trading at $50, and it had a 20% volatility, that means there's a greater likelihood that the security could trade within a 20% range (20% above $50 or 20% below $50) over a period of time.

That's a great way to wrap your mind around volatility.

In future examples, we'll talk about volatility and how to use it to your advantage in a practical sense.

You can learn more about different option strategies by downloading our free options booklet: 3 Smart Ways to Make Money with Options (Two of Which You Probably Never Heard About). Just click here.

And be sure to check out our Zacks Options Trader.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

 
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST  
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST  
ANCESTRY.COM (ACOM): Free Stock Analysis Report
 
MACYS INC (M): Free Stock Analysis Report
 
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST Mitcham Industries, Inc. (MIND) has sold off about 26% in just the month of May alone. That makes this Zacks #1 Rank (Strong Buy) a big value with a forward P/E of just 6.8.

Mitcham supplies rental or new seismic equipment to the oil and gas industry, seismic contractors, government agencies and universities. It also manufactures specialized seismic marine equipment through its Seamap brand.

A global company headquartered in Texas, it has sales and service offices in Canada, Australia, Singapore, Russia, Peru, Colombia, and the United Kingdom.

Record Fiscal 2012 Fourth Quarter

On Apr 3, Mitcham reported its fiscal 2012 fourth quarter results and blew by the Zacks Consensus Estimate by 43%. Earnings per share were 77 cents compared to the consensus of 55 cents. It made just 17 cent in the year ago quarter.

Revenue soared 88% to a record $37 million from $19.7 million a year ago. Sales were propelled by equipment leasing which rose 87% to $23.7 million from $12.7 million in the 2011 fiscal fourth quarter.

The company benefited from higher utilization and a strong global seismic market, particularly in the United States, Latin America, Europe and North Africa. There was also strong activity in the marine leasing business.

"Demand for land seismic rental equipment in the U.S. has picked up sequentially, mainly driven by activity in several of the shale plays," said Bill Mitcham, the President and CEO.

Fiscal 2013 Still Looking Strong

As of Apr 3, the company continued to see indications of strong demand for seismic services, especially in the international markets.

The trends that produced record quarters in fiscal 2012 have continued into fiscal 2013. All of its land recording channels have been committed during the first quarter, as was the case in fourth quarter of fiscal 2012. That indicates a good utilization of its lease pool.

It also entered into fiscal 2013 with a strong order book at Seamap.

Fiscal 2013 Zacks Consensus Estimate Rises

Given the strong fiscal fourth quarter and bullish outlook, it's not surprising that the fiscal 2012 Zacks Consensus Estimate has jumped 12% to $2.66 from $2.34 in the last 60 days.

That is earnings growth of 32% over fiscal 2012 where it made just $2.02 per share.

Plenty of Value

Shares have significantly weakened over the last few weeks.

Mitcham is now an even deeper value. Its P/E of 6.8 is well below that of its peers which average 13.4.

Additionally, the company has a price-to-book ratio of only 1.4. A P/B under 3.0 usually means there is value.

Mitcham also has a 1-year return on equity (ROE) of 18%. That easily beats its peers which average only 7.1%.

If you're an investor looking for a beaten down value stock with double digit earnings growth, you may want to consider Mitcham.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

 
MITCHAM INDS (MIND): Free Stock Analysis Report
 
MITCHAM INDS (MIND): Free Stock Analysis Report
 
MITCHAM INDS (MIND): Free Stock Analysis Report
 
To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST Energy Transfer Equity, L.P. (ETE) offers investors solid growth and income at an attractive price.

The partnership has steadily raised its distribution, which currently yields 6.7%, and estimates have been rising after it delivered solid first quarter results on May 8.

It is a Zacks #2 Rank (Buy).

Company Description

Energy Transfer Equity is a publicly traded partnership, which owns the general partner and 100% of the incentive distribution rights, and approximately 28% of the outstanding limited partner interests of Energy Transfer Partners L.P. (ETP).

It also owns the general partner interests, 100% of the incentive distribution rights, and approximately 22% of the outstanding limited partner interests of Regency Energy Partners L.P. (RGP). ETE is also the parent of Southern Union Company, a diversified natural gas company.

The Energy Transfer Equity family of companies owns approximately 45,000 miles of natural gas and natural gas liquids pipelines. It has a market cap of $10.5 billion.

First Quarter Results

Energy Transfer Equity delivered better than expected first quarter results on May 8. Earnings per share came in at 73 cents, crushing the Zacks Consensus Estimate of 35 cents. It was an 83% increase over the same quarter in 2011.

This increase was due in large part to a gain on the deconsolidation of its propane business - not exactly something to get excited about. But adjusted distributable cash flow did rise 4% year-over-year to $130.7 million.

Outlook

And analysts have been revising their earnings estimates significantly higher for both 2012 and 2013. It is a Zacks #2 Rank (Buy).

Based on consensus estimates, analysts expect strong earnings growth over the next two years. The Zacks Consensus Estimate for 2012 is now $2.20, a 33% increase over 2011 EPS. The 2013 consensus is currently $2.34, corresponding with 6% growth.

6.7% Yield

Not only do analysts expect strong earnings growth but strong distributable cash flow growth as well. And this should translate to higher distributions down the road.

The partnership currently pays a distribution that yields a solid 6.7%. Since 2007, it has raised it at a compound annual rate of 13%.

Valuation

Valuation looks reasonable too. Shares trade at 17.1x 12-month forward earnings, a discount to its historical median of 18.4x.

And its price to tangible book ratio of 1.3 is also below its historical multiple of 2.2.

The Bottom Line

With rising estimates, strong growth projections, a juicy 6.7% yield and reasonable valuation, Energy Transfer Equity offers attractive total return potential.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 
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To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST American Vanguard Corp. (AVD) reported solid first-quarter 2012 results with a positive earnings surprise of roughly 29%, which pushed this diversified specialty chemicals maker to a new 52-week high on May 22, 2012.

American Vanguard has emerged as a bright star in the chemical firmament leveraging the growing demand for soil insecticides as the U.S. corn growers contend with pest problems. Upward momentum for this Zacks #2 Rank (“Buy”) stock looks to continue thanks to favorable industry trends.

The company’s first quarter profit ballooned 74% year over year to $8.7 million, buoyed by higher demand for its granular soil insecticides. Earnings of 31 cents per share beat the Zacks Consensus Estimate of 24 cents. AVD reported on May 3.

Revenues cruised higher by 32% year over year to $87.3 million, topping the Zacks Consensus Estimate of $81 million. Gross margin rose to 42.8% from 40.8% a year ago on the back of improved factory utilization rates.

Estimates Moving Up

There has been a solitary upward estimate revision for both 2012 and 2013 over the last 30 days. The Zacks Consensus Estimate for 2012 has moved up 4% in that time to $1.04 a share, representing an estimated annualized growth of 30%. For 2013, the Zacks Consensus Estimate rose by roughly 9% to $1.31 per share, indicating an estimated growth of nearly 26%.

Valuation: Stretched but Reasonable

American Vanguard is currently trading at a forward P/E of 25.13x, a roughly 38% premium to the peer group average of 18.16x. The premium is justified considering the company’s long-term EPS growth rate of 25% (versus 18.5% for the peer group). Moreover, American Vanguard has a 1-year ROE of 13.9%, higher than its peer group average of 12.1%, reflecting efficient capital deployment.

Impressive Performance and Bullish Technicals

Technical indicators for American Vanguard show strong bullish momentum. Following a series of sporadic movements, the stock finally broke the 50-day moving average in late-November 2011. Since then, it continues to rally upward and has been trading above the 50-day and 200-day moving averages, which stand at $23.36 and $15.70, respectively; this is below the company’s current price of $26.13. Interestingly, the 50-day moving average continues to read higher than the 200-day moving average, manifesting the bullish trend, with the 200-day moving average acting as the support level.

On the performance front, American Vanguard’s share price has rocketed roughly 89% year-to-date. The company has outperformed the S&P 500 over the past year and has delivered a staggering year-to-date return of 163.2% versus 0.89% for the benchmark.

Founded in 1969, American Vanguard makes specialty chemical products for agricultural and commercial applications. The company, which competes with Aceto Corp. (ACET) and FMC Corp. (FMC), develops and markets an array of chemicals, including insecticides, fungicides and herbicides, for crops, human and animal health protection. American Vanguard has the largest assortment of corn soil insecticides coupled with the most advanced dispensing equipment.

 
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To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST RadioShack Corp.'s (RSH) difficulties persists as the company's first-quarter 2012 financial results were pathetic. The company's core consumer electronics retail business is on a secular downtrend and is unlikely to be revived in the near future. Customers increasingly prefer online purchase instead of visiting brick-and-mortar retail stores.

Loss of footfall is taking a toll on RadioShack's mobility business, on which the company is banking for its future growth. Further, instead of computers and cameras, majority of consumers prefer tablets and smartphones, which are less profitable for the retail industry.

In the last quarter, comparable store sales for the company-operated stores and kiosks decreased 4.2% year over year. This is a key retail performance indicator measuring growth from existing sales locations. We do not find any immediate growth catalyst and thus reaffirm our Underperform recommendation.
 
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To read this article on Zacks.com click here. ]]> Thu, 24 May 2012 00:00:01 EST Dean Foods Co. (DF) first-quarter 2012 earnings of $0.31 per share came ahead of the Zacks Consensus Estimate of $0.21 and jumped over two-fold from the prior-year period, primarily driven by a recovery in its fluid milk business with continuous growth at its WhiteWave-Alpro business. The company's net sales grew 5.4% due to better pricing strategy coupled with robust segmental performance.

The company now forecasts full-year 2012 adjusted earnings in the range of $1.10 to $1.20 a share, up from $0.87-$0.95 forecasted earlier. The company has taken initiatives to restructure operations in an effort to reduce costs while expanding its branded product business through acquisitions.

Moreover, in a move to optimize its capital allocation and concentrate on core business activities, Dean Foods intends to divest underperforming businesses. Currently, we are maintaining a long-term Outperform recommendation on the stock.
 
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Zacks Investment Research ]]> Wed, 23 May 2012 00:00:01 EST Valeant Pharmaceuticals (VRX) has posted four straight positive earnings surprises and is now a Zacks #1 Rank (Strong Buy).

Company Description

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company develops pharmaceutical products in the areas of neurology, dermatology, and branded generics. It offers Wellbutrin XL to treat depressive disorders and Xenazine to treat chorea associated with Huntington's disease. Other drugs include CeraVe to rebuild and repair skin barrier and Kinerase, a cosmetic product. The company was formerly known as Biovail Corporation and changed its name to Valeant Pharmaceuticals International, Inc. in September 2010. The company was founded in 1960 and is headquartered in Montreal, Canada.

Valeant Pharmaceuticals Tops Estimates in Four Straight Quarters

Valeant Pharmaceuticals topped the Zacks Consensus Estimate in each of the last four quarters. The average beat has been $0.07.5 above the Zacks Consensus Estimate which works out to be an average beat of 9.2%. In the session following the earniings release has seen VRX move higher two times and lower two times in the last four reports. The average of these four moves is a decrease of 3.4%.

The largest positive price movement in the stock came the day after the company reported the September 2011 quarter. Valeant Pharmaceuticals meet the topline estimate of $570 million, a year over year increase of 174%. EPS of $0.62 was $0.05 higher than the $0.57 Zacks Consensus Estimate and the stock moved higher by more than 15%.

Follow Brian Bolan on twitter at @BBolan1

Valeant Pharmaceuticals Most Recent Reported Earnings

On May 3, 2012 Valeant Pharmaceuticals reported revenue of $856 million, about $55 million more than the Zacks Consensus Estimate and up from $565 million reported in year ago quarter, an increase of 55%. Earnings per share came in at $1.14, $0.17 higher than the Zacks Consensus Estimate of $0.97. The beat of 17.5% didn't do much for the stock as investors sold forcing the stock lower by 9.8% in the session following earnings.

Valeant Pharmaceuticals Sees Estimates Moving Higher

Valeant Pharmaceuticals has seen earnings estimates move higher following the recent positive earnings surprise. The Zacks Consensus Estimate for 2012 was as low as a loss of $4.00 in January 2012 and has since moved higher to $4.40.

Similarly, estimates for 2013 have moved from $4.58 to $4.82 over the same time frame.

Valuation

Valeant Pharmaceuticals has a very attractive valuation. While trailing twelve months PE multiple of 14x is great than the 11.8x industry average, the forward PE multiple of 10.7x is below that of the industry average at 11.8x. Price to book of 3.5x is in line what you would expect for a growth company, but is higher than the industry average of 1.9x. Similarly, a price to sales ration of 5.3x is much higher than the 1.9x industry average.

The Chart

A look at the price and consensus chart shows a stock that was ahead of estimates throughout most of 2010 and 2011. Earnings have only recently caught up with the stock, but earnings continue to grow. This implies that the stock will likely continue on a higher trend over the next several quarters. The large gap between 2011 and 2012 estimates is the type of growth the aggressive growth investors tend to look for. Valeant Pharmaceuticals is a Zacks #1 Rank (Strong Buy).

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service

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To read this article on Zacks.com click here. ]]> Wed, 23 May 2012 00:00:01 EST Penske Automotive Group, Inc. (PAG) recently reported the most profitable first quarter in the auto retailer's history. Earnings are expected to grow in the double digits in 2012. Yet this Zacks #1 Rank (Strong Buy) also has attractive valuations with a forward P/E of just 11.4.

Penske is the second largest auto retailer in the United States measured by revenue. As of Jan 12, 2012, it operated 335 retail automotive franchises handling 42 different brands and 29 collision repair centers.

Headquartered in Michigan, it sells new and used cars, offers financing and insurance products and replacement parts and also provides maintenance and repair services on all of the brands it services.

The company has 166 franchises in 17 states and Puerto Rico and 169 international franchises, mainly in the United Kingdom.

A Record First Quarter

On Apr 25, Penske reported first quarter results and blew by the Zacks Consensus Estimate by 14.6%. Earnings per share were 55 cents compared to the consensus of just 48 cents.

Penske has an impressive earnings surprise streak going. This was the 9th straight earnings surprise.

Sales climbed 17.9% to $3.2 billion due to improvement in total retail unit sales of 18.1% and growth in the company's used-to-new ratio versus last year.

In the United States, unit sales rose 12.3%. Internationally they jumped 30.7%.

Used retail sales were hotter than new, as used gained 26.6% compared to new sales rising just 11.5%.

Same-store sales rose 8.5% in the United States. Even internationally, where you would expect slowing given the global economic challenges, same store sales still managed to rise 5.9%.

Analysts Are Bullish About 2012

In the last 30 days, 11 estimates have been raised for 2012 which has pushed the Zacks Consensus Estimate up 7% to $2.17 from $2.02 in that time.

That is 21% earnings growth as the company earned just $1.80 in 2011.

Shares Hit 5-Year High

After the estimate beat in the first quarter, shares surged to new 5-year highs. They have since retreated slightly as the rest of the stock market has weakened.

But despite the new highs, Penske still has plenty of value.

In addition to a P/E under 15, which is the cut-off I use for value stocks, it also has a price-to-book ratio of 1.9. A P/B ratio under 3.0 usually indicates value.

Penske has other value metrics including a price-to-sales ratio of only 0.2. That is really low. A P/S ratio under 1.0 can mean a company is undervalued. The average P/S ratio of the S&P 500, by comparison, is 1.8.

Penske also rewards shareholders with a dividend, currently yielding 1.8%.

Penske is a way to profit from America's love affair with the car. Investors get value with double digit earnings growth. That is a rare combination.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

 
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Zacks Investment Research ]]> Thu, 03 May 2012 00:00:01 EST Here is a synopsis of why CVH and APD have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:

Coventry Health Care, Inc. (CVH) announced first-quarter profit of 62 cents per share on April 27 that missed analysts? expectations by 1.59%. The Zacks Consensus Estimate for the current year slid to $2.72 per share from $3.25 per share in the last 30 days as next year?s estimate dipped 23 cents per share to $3.27 per share in that time span.

Air Products & Chemicals, Inc. (APD) posted a second-quarter profit of $1.31 per share on April 24, which came in 2 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $5.56 per share from $5.93 per share over the past month. For 2013, analysts expect a profit of $6.36 per share, compared to last month?s projection for a profit of $6.66 per share.

Here is a synopsis of why DECK and ICON have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;

Deckers Outdoor Corp (DECK) first-quarter profit of 20 cents per share, posted on April 26, lagged analysts? projections by 20%. Estimate for current year slid 53 cents per share to $4.61 per share over a month as next year?s estimate dipped 54 cents per share to $5.60 per share in that time span.

Iconix Brand Group, Inc. (ICON) reported a first-quarter profit of 43 cents per share on April 25 that fell 6.52% short of the Zacks Consensus Estimate. The full-year average forecast is currently $1.68 per share, compared with last month?s projection of $1.80 per share. Next year?s forecast dropped to $1.88 per share from $1.95 per share in the same period.
 
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Zacks Investment Research ]]> Fri, 27 Apr 2012 00:00:01 EST Here is a synopsis of why ARCO and QUAD have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:

Arcos Dorados Holding Inc (ARCO) announced fourth-quarter profit of 22 cents per share on March 5 that missed analysts? expectations by 4.35%. The Zacks Consensus Estimate for the current year slid to 81 cents per share from 86 cents per share in the last 60 days as next year?s estimate dipped 11 cents per share to $1 per share in that time span.

Quad/Graphics, Inc. (QUAD) posted a fourth-quarter profit of 63 cents per share on February 29, which came in 37 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.80 per share from $2.18 per share over the past two months. For 2013, analysts expect a profit of $1.82 per share, compared to last two month?s projection for a profit of $2.84 per share.

Here is a synopsis of why WRC and NVS have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;

Warnaco Group Inc?s (WRC) fourth-quarter profit of 97 cents per share, posted on February 29, lagged analysts? projections by 1.02%. Estimate for current year slid 7 cents per share to $4.38 per share over two month?s as next year?s estimate dipped 13 cents per share to $4.94 per share in that time span.

Novartis AG (NVS) reported a first-quarter profit of 95 cents per share on April 24 that fell 28.03% short of the Zacks Consensus Estimate. The full-year average forecast is currently $5.35 per share, compared with last month?s projection of $5.49 per share. Next year?s forecast dropped to $5.53 per share from $5.65 per share in the same period.
 
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Zacks Investment Research ]]> Mon, 23 Apr 2012 00:00:01 EST Here is a synopsis of why SAFT and CEL have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:

Safety Insurance Group, Inc. (SAFT) announced fourth-quarter profit of 31 cents per share on March 8 that missed analysts? expectations by 47.46%. The Zacks Consensus Estimate for the current year slid to $3 per share from $3.05 per share in the last 60 days as next year?s estimate dipped 7 cents per share to $3.08 per share in that time span.

Cellcom Israel Ltd. (CEL) posted a fourth-quarter profit of 20 cents per share on March 7, which came in 36 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.48 per share from $2.28 per share over the past two months. For 2013, analysts expect a profit of $1.53 per share, compared to last two month?s projection for a profit of $2.06 per share.

Here is a synopsis of why MATW and NAV have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;

Matthews International Corp (MATW) second-quarter profit of 56 cents per share, posted on April 19, lagged analysts? projections by 3.45%. Estimate for current year slid 1 cent per share to $2.55 per share over a month as next year?s estimate dipped 4 cents per share to $2.83 per share in that time span.

Navistar International Corporation (NAV) reported a first-quarter loss of $2.08 per share on March 8 that fell 732% short of the Zacks Consensus Estimate. The full-year average forecast is currently $4.21 per share, compared with last month?s projection of $4.42 per share. Next year?s forecast dropped to $6.34 per share from $6.50 per share in the same period.
 
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Zacks Investment Research ]]> Thu, 12 Apr 2012 00:00:01 EST Here is a synopsis of why TPC and SINA have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:

Tutor Perini Corporation (TPC) announced fourth-quarter profit of 50 cents per share on March 1 that missed analysts? expectations by 33.33%. The Zacks Consensus Estimate for the current year slid to $2.17 per share from $2.52 per share in the last 60 days as next year?s estimate dipped 25 cents per share to $2.48 per share in that time span.

SINA Corporation (SINA) posted a fourth-quarter profit of 13 cents per share on February 27, which came in 3 cents wider than the average forecast. The Zacks Consensus Estimate for the full year fell to 13 cents per share from 25 cents per share over the past month. For 2013, analysts expect a profit of 1 cent per share, compared to last month?s projection for a profit of 98 cents per share.

Here is a synopsis of why HBI and WRC have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;

Hanesbrands Inc. (HBI) fourth-quarter profit of 41 cents per share, posted on February 15, lagged analysts? projections by 19.61%. Estimate for current year slid 1 cent per share to $2.51 per share over a month as next year?s estimate dipped 2 cents per share to $3.17 per share in that time span.

Warnaco Group Inc. (WRC) reported a fourth-quarter profit of 97 cents per share on February 28 that fell 1.02% short of the Zacks Consensus Estimate. The full-year average forecast is currently $4.39 per share, compared with last two month?s projection of $4.44 per share. Next year?s forecast dropped to $4.94 per share from $5.07 per share in the same period.
 
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Zacks Investment Research ]]> Thu, 05 Apr 2012 00:00:01 EST Here is a synopsis of why UNS and RIMM have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:

UniSource Energy Corp. (UNS) announced fourth-quarter profit of 22 cents per share on February 27 that missed analysts? expectations by 15.38%. The Zacks Consensus Estimate for the current year slid to $2.25 per share from $2.48 per share in the last 60 days as next year?s estimate dipped 10 cents per share to $2.80 per share in that time span.

Research In Motion Limited (RIMM) posted a fourth-quarter profit of 80 cents per share on March 29, which came in 1 cent wider than the average forecast. The Zacks Consensus Estimate for the full year fell to $1.96 per share from $2.86 per share over the past month. For 2014, analysts expect a profit of $2.07 per share, compared to last month?s projection for a profit of $3 per share.

Here is a synopsis of why LRN and PLCE have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;

K12 Inc. (LRN) second-quarter profit of 11 cents per share, posted on February 7, lagged analysts? projections by 60.71%. Estimate for current year slid 1 cent per share to 53 cents per share over a month as next year?s estimate dipped 4 cents per share to 78 cents per share in that time span.

Children's Place Retail Stores, Inc. (PLCE) reported a fourth-quarter profit of 87 cents per share on March 7 that fell 2.25% short of the Zacks Consensus Estimate. The full-year average forecast is currently $3.31 per share, compared with last month?s projection of $3.68 per share. Next year?s forecast dropped to $3.87 per share from $4.30 per share in the same period.
 
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Zacks Investment Research ]]>