CIBC upgrades Canadian Pacific (CP 62.88) to Outperform from Sector Perform
Stifel upgrades Advance Auto Parts (AAP 41.06) to Buy from Hold with a $48 tgt saying they believe auto parts retail fundamentals are improving and AAP is the least expensive name they cover
Stifel initiates Susquehanna Banc (SUSQ 23.03) with a Sell saying despite the shortcomings tied to Hann, they continue to scratch their heads at management's allocation of expenses and capital throughout the entire organization.
Goldman Sachs upgrades Alcatel-Lucent (ALU 13.16) to Buy from Neutral
Jefferies upgrades Limited Brands (LTD 28.86) to Buy from Hold and raises their tgt to $35 from $30, as they believe the potential sale of the co's lagging Apparel Division would likely expand the valuation yardstick investors place on the coBofA notes they received what could be an "early shot across the bow" yesterday as EAT discussed food cost pressures in some of its contracts that expire with its upcoming June fiscal year-end.
BofA forecasts 2007 beef prices to be +4.2%, chicken +16.4% and pork +5.0%. Should these increases materialize, restaurant cos may face challenges this fall as they start contracting for 2008 needs. Firm says rising corn/feedstock prices along with cyclical changes and food industry capacity rationalization will likely continue to impact proteins, as they look out toward 2008. Firm's least favorite Casual Dining name is APPB. They also would not buy OSI, RARE, RRGB, RT, and TXRH.
Jooksvad numbrid kinnitavad mu arvamust, et intressimäärade langetamisest oleme veel kaugel. Tööhõive on tugev, tarbimine ja sissetulekud on tugevad. Kõik märgid näitavad, et senine intressimäärade tõstmine ei ole veel piisav, et tarbimist piirata ning inflatsioonioht on endiselt kõrge.
Gapping down on weak earnings/guidance: TZOO -18.7%, EXBD -16.9%, GGG -8.9%, HTCH -8.6% (also downgraded to Underweight at JP Morgan), SSTI -7.8% (also downgraded to Sell at WR Hambrecht), DYAX -7.3%, SUNW -6.4%, WU -6.2%, ANAD -6.0%, CKFR -5.9%, WBSN -5.3% (also downgraded to Neutral at Credit Suisse), PDS -5.2%, SANM -5.0% (also downgraded to Sector Perform at CIBC), CYMI -5.0% (also multiple downgrades), WLP -4.7%, RFMD -4.6%, CLZR -4.6%, EEFT -4.4% (also downgraded to Mkt Perform at Piper), EZPW -4.2% (also upgraded to Buy at Roth), ISE -4.1%... Other news: ONT -8.5% (files $60 mln mixed shelf), VNLS -8.0% (to delist from the Nasdaq and to deregister and terminate its US reporting obligations).
Gapping Up
Gapping up on strong earnings/guidance: AMZN +16.3% (also multiple upgrades), WVCM +12.0%, RVBD +11.4% (also multiple upgrades), ZRAN +11.1%, CHRW +8.5% (also upgraded to Buy at Merrill), ORLY +8.1% (also upgraded to Strong Buy at Raymond James), EFII +6.5%, BTJ +6.2%, ILMN +6.0%, LIFC +5.3%, DXPE +5.3%, CAKE +4.5% (also upgraded to Buy at Keybanc), GLW +4.7%, SLAB +4.5%... News-driven rally in small-cap/cancer biotechs continues: BDSI +66.0% (announces positive Phase III clinical trial results for Bema Fentanyl), XNPT +24.4% (reports positive top-line Phase 3 trial results of XP13512 in Restless Legs Syndrome), CVTX +12.2% (upgraded to Buy at First Albany), EPCT +6.9%, GNVC +4.7%... M&A: KTO +20.0% (Jarden confirms agreement to acquire KTO), TFSM +19.8% (WPP among suitors for TFSM - NY Post), ABN +5.0% (RBS-led group makes offer for ABN worth more than $100 bln - WSJ)... Other news: DAR +5.8% (initiated with a Buy at Morgan Joseph), JASO +4.9% (initiated with an Outperform at Raymond James), MAMA +4.7% (licenses copernic desktop search to UOL), AATI +4.2% (upgraded to Buy at Jefferies), CHINA +2.2% (initiated with a Positive at Susquehanna).
Market Focused on Good Earnings ByRev Shark RealMoney.com Contributor 4/25/2007 8:33 AM EDT Click here for more stories by Rev Shark
I am always ready to learn, although I do not always like being taught. -- Winston Churchill
The market keeps teaching a lesson that many market participants don't want to learn. That lesson is that it is not going to go down until it is good and ready to.
It obviously doesn't care too much about the fuss over housing, slowing retail sales, persistent inflation, a weak dollar and cooling economic growth. The market is focused on generally good earnings reports, and it doesn't much matter if you think that is reasonable or not.
The market is so frustrating and so potentially lucrative mainly because it is not easy to understand. I can seldom remember a time when there have been more bears scratching their heads over the persistent strength than we have now. Despite downright compelling logic, we just keep on working higher.
Of course, in the perverse manner that the market works, the fact that so many doubt that we can keep going is probably keeping things going as it ensures a healthy supply of cash on the sidelines to serve as support.
There is no question that some of the recent earnings reports have been surprisingly strong. Texas Instruments (TXN - commentary - Cramer's Take - Rating) yesterday drove the chips. This morning, Amazon (AMZN - commentary - Cramer's Take - Rating) is the latest example, and even with artificially low taxes for the quarter, sales were robust and guidance impressive.
In addition to the good earnings, a number of big companies, such as IBM (IBM - commentary - Cramer's Take - Rating) and Linear Technology(LLTC - commentary - Cramer's Take - Rating) are engaging in their own private version of a "carry trade," in which they borrow funds to buy back their own shares. The availability of cheap capital is what is driving the big -cap stocks, which in turn is keeping the indices running.
Like many other market players, I keep looking for this market to roll over. But while that scenario appeals to my sense of logic, I am keeping firmly in mind that the market doesn't care about my logic and is giving no indication that it will start to care in the near future. I'm going to have to respect the fact that the market is the teacher and keep learning the lesson it wants to teach me.
Kui vaadata aasta alguses tehtud prognoose Dow indeksi kohta, siis 14 inimest 18-st arvasid, et Dow lõpetab aasta 13000 punktil või kõrgemal. S.t. väga suureks üllatuseks selle taseme saavutamist ei saa pidada.
Statistika huvitav, kuid aasta pole veel läbi. Huvitav oleks teada, mida need inimesed täna arvavad? Milline on Dow prognoos täna aasta lõpuks? Ma kaldun arvama, et madalamal praegustest tasemetest.
Stephens on ASEI kukkumise taga We would wait for a better entry point to buy shares of AS&E, as we believe the stock is fully valued relative to its uncertain growth prospects and lack of earnings visibility. We are maintaining our Equal-Weight/Volatile rating but reducing our price target from $55 to $50, or 18x our CY08 EPS estimate of $2.77. In addition, we are lowering our 4Q07 and 1Q08 earnings estimates to reflect reduced assumptions of ZBV shipments.
* Lowering estimates based on weak ZBV order flow. In 4Q07, ASEI only received 1 of the 2 expected international orders for Z Backscatter Vans (ZBVs) that it discussed on its last conference call. Based on the push- out of this specific order and the generally lackluster bookings of its high-margin ZBVs, we are reducing our 4Q07 and 1Q08 EPS estimates. We are dropping our 4Q07 EPS estimate from $0.89 to $0.58 based on a reduction in assumed ZBV shipments from 35 units to 18. We are decreasing our 1Q08 EPS estimate from $0.63 to $0.54 based on a reduction in assumed ZBV shipments from 20 units to 15. Our 1Q projection assumes that ASEI books and ships the 2nd large international order discussed on its last conference call. We would note that quarterly earnings are a significant challenge to project, given the uncertain timing of shipments of ASEI's high-margin, high-dollar ZBVs. See the table on the next page for the detailed logic behind our revisions. * Stock still seems fully valued in our view. Given the challenges in projecting near- and long-term earnings, the stock's current valuation (22.7x trailing EPS and 8.6x trailing EBITDA) still seems a little rich to us. The Company continues to execute well, though, and we would reconsider our recommendation if we gain confidence in ASEI's long-term growth prospects.
GMKT tegutseb Lõuna Koreas ja ei tunne asja, aga pakuks, et hiljuti suurendas YHOO oma stake`i GMKT-s ja viimane on miinuses täna (AMZNi kaudsed mõjud kummalegi). YHOO mõju täna (mitte pikas perspektiivis) AMZNi valguses võib olla negatiivne GMKT-le ja võib olla on veel mingeid kohalikke Lõuna Korea tegureid millest me ei tea.
