The Summer Olympics are only days away and what the Chinese had hoped would be their coming out party to celebrate all that is good, may instead become quite the opposite.
The air pollution in Beijing is so bad that even reducing automobile traffic by 50% has not helped much. China is now considering a 90% reduction according to news reports. Athletes are staying in other countries until the games begin so that they may train somewhere they can breathe. There are also reports that many athletes involved in stamina events will be forced to wear masks to protect themselves from the particulates in the air.
Now Reuters is reporting that "Some International Olympic Committee officials cut a deal to let China block sensitive websites despite promises of unrestricted access, a senior IOC official admitted on Wednesday."
So the world media will not be able to do their jobs in a manner they are accustomed to. But who are we actually referring to? Western media, of course, because half the world still limits access to information to some degree.
Altera Corporation (NASDAQ: ALTR) makes high-density programmable logic devices and associated development tools. PLDs are integrated circuits that clients can program themselves, using software that Altera also provides. This allows clients to provide their customers with special-purpose chips that cost less than equivalent custom-designed devices. Altera's circuits are used by thousands of customers in computing, telecommunications, industrial, and automotive applications. Clients include Honeywell (NYSE: HON), Johnson Controls (NYSE: JCI) and Motorola (NYSE: MOT).
Investors were pleased earlier in the week, when Altera reported Q2 EPS of 32 cents, revenues of $359.9 million and a gross margin rate of 67.1%. Analysts had been expecting 27 cents, $346.7 million and 65.01%. The company also guided Q3 revenues to about $349.1-$359.9 million ($350.51M consensus). Management noted a current book-to-bill ratio significantly above one and remarked that the firm had repurchased 526,000 shares so far in Q3. The board declared a five cent quarterly dividend.
EMCOR Group (NYSE: EME) plans, installs, operates and maintains the systems that create facility environments. These include installations for power generation, power distribution, lighting, security, communications, plumbing, waste treatment, heating, ventilation, refrigeration and air-conditioning. The firm also provides facilities management and maintenance support. It serves commercial, industrial and institutional clients such as Bristol-Myers Squibb (NYSE: BMY) and Wachovia Corporation (NYSE: WB). Johnson Controls (NYSE: JCI) is a major competitor.
The Street was surprised last week, when EMCOR guided FY08 EPS from $2.08-$2.28 to $2.22-$2.42 and FY08 revenues from $6.3-$6.5 billion to $6.8-$7.0 billion. Analysts had been looking for $2.31 and $6.76 billion. The CEO cited "solid order activity" and a "strong contract backlog" for the favorable view.
TheStreet.com's Jim Cramer says recent downgrades are killing whole industries, and they're coming at a terrible time.
You can't lose autos and aerospace. Yet that's what's happening. The devastating aerospace downgrade by Goldman yesterday had pin action galore, wrecking everything from United Tech (NYSE: UTX) (Cramer's Take) and Parker-Hannifin (NYSE: PH) (Cramer's Take) to BE Aerospace (NASDAQ: BEAV) (Cramer's Take). It took the whole frame down with it and made everything toxic. And it happens at a terrible time. It isn't like Honeywell (NYSE: HON) (Cramer's Take), which with a few days left in the quarter can come out defending itself. Goldman rolled a perfect strike.
The fund has some pretty high ideals according to its Web site: "We focus on the economic, environmental, social, and governance risks and opportunities that can materially affect a company's ability to sustain profitability and deliver returns. Our research plays an important role in forming our views on the quality of the business, the quality of management, and valuation."
So how does that translate in the real world? Al Gore isn't providing performance details, according to the Bloomberg story. It's kind of weird for Gore to be so mum considering that its biggest holding Novo Nordisk (NYSE: NVO) is up more than 60% over the past year in U.S. trading.
It is alarming to me that the same people who screw up the economy (or stand by watching) are the ones that are now promoting the remedies. They have proven without a shadow of a doubt that this is not their strong suit. The proposed economic stimulus package has bi-partisan support and calls for an estimated $156 billion of tax rebates ranging from $500 to $1,000 (+ $300 for each child) that might show up in May.
If we are going to add on to our already humungous joke of national debt, than I want to invest this capital in something that will bring a higher return on invested capital (ROIC) than the paltry one time mad money. That expenditure should be for national infrastructure projects like roadways, bridges, tunnels, and waterways.
We have all heard about the poor condition of our national infrastructure and the hundreds of billions of dollars of repair work and replacement that is desperately needed.
This alternative would bring visible results that every single person in the country would benefit from and improved linkages always stimulate economic growth. Road improvements even reduce fuel consumption by shortening routes and reducing friction both strategically and physically.
ThinkEquity upgraded Syniverse Holdings Inc (NYSE: SVR) to Buy from Accumulate citing growth from further price reductions and adoption of new technologies that will drive transaction volumes.
Allegheny Technologies Incorporated (NYSE: ATI) was raised to Buy from Neutral at Goldman.The firm upgraded Allegheny based on valuation, low stainless steel inventories, and nickel price stabilization.
OTHER UPGRADES:
Napster Inc (NASDAQ: NAPS) was upgraded to Outperform from Peer Perform at Bear Stearns.
Washington Mutual Inc. (NYSE: WM) announced after the market closed Thursday that it swung to a loss of $1.87 billion, or $2.19 per share, due to the disarray in the mortgage and credit markets. WaMu had been preparing Wall Street for the hit since December. Still, revenues fell 5% to $3.41 billion in the quarter, missing Wall Street's estimate of $3.51 billion. For 2007, WaMu posted a loss of $67 million, or 12 cents per share, on $11.11 billion in revenue, compared to a profit of $3.56 billion, or $3.64 per share, on $13.68 billion in revenue in 2006. CEO Kerry Killinger said in a conference call that 2008 won't be much better. However, by midday Friday shares were up more than 6%.
Johnson Controls Inc. (NYSE: JCI) reported Friday that its fiscal first-quarter profit rose 45% with growth across all divisions. Earnings grew to $235 million, or 39 cents per share, in the quarter ended December 31, from $162 million, or 27 cents per share, in the same period a year ago. Quarterly revenue climbed 16% to $9.48 billion from $8.21 billion a year ago. Analysts surveyed by Thomson Financial had expected profit of 37 cents per share on revenue of $9.1 billion. The company maintained its full-year 2008 forecast for earnings of $2.45 to $2.50 per share and revenue of $38 billion. After opening at $34.35 on Friday, shares fell to near $30 in morning trading.
Another earnings season crunch has begun, though with a level of uncertainty and ennui, as Jim Cramer and others have pointed out here on BloggingStocks. Several of the big banks are reporting soon, but among other companies reporting this week are Schlumberger Ltd. (NYSE: SLB) and Johnson Controls Inc. (NYSE: JCI). Here is a quick peek at these two companies.
Schlumberger hasn't missed quarterly earnings expectations since 2004. When it reported third-quarter results back in October, its $1.09 earnings per share beat the consensus estimate of analysts surveyed by Thomson Financial by two cents, as well as the actual 81 cents per share in the same period of 2006. For the current quarter, analysts expect earnings of $1.13 per share, or $4.20 for the full year, up from $3.04 in 2006.
Schlumberger's 56.9 percent earnings per share growth forecast for the next three to five years is better than the industry average and the S&P 500. The analysts' consensus recommendation has been to buy Schlumberger for at least six months. The share price rose to a 10-year high of $114.84 in October, but has traded mostly in the $90s since then.
For news that could influence the earnings results, check out BloggingStocks' Schlumberger coverage.
MOST NOTEWORTHY: E-Trade, Sterling Bancshares and Research in Motion and were today's noteworthy downgrades:
Bank of America downgraded shares of E-Trade (NASDAQ: ETFC) to Sell from Neutral, as they no longer believe the value of the company's retail brokerage business can offset negative value at the bank.
Sterling Bancshares (NASDAQ: SBIB) was downgraded to Neutral from Outperform at Baird on valuation.
Morgan Keegan lowered its rating on Research in Motion (NASDAQ: RIMM) to Market Perform from Outperform, and believes the 8000 series upgrade cycle will likely slow and that share performance will be impacted by expectations of a slowing economy..
Construction tends to be a local business, but a limited number of firms have managed to establish international reputations. One of them employs some 27,000 skilled workers and operates locally from 140 locations worldwide.
EMCOR Group (NYSE: EME) plans, installs, operates and maintains the systems that create facility environments. These include installations for power generation, power distribution, lighting, security, communications, plumbing, waste treatment, heating, ventilation, refrigeration and air-conditioning. The firm also provides facilities management and maintenance support. It serves commercial, industrial and institutional clients such as Bristol-Myers Squibb (NYSE: BMY), Wachovia Corporation (NYSE: WB) and the U.S. Senate. Johnson Controls (NYSE: JCI) is a major competitor.
The Street was surprised last week, when EMCOR reported Q3 EPS of 55 cents and revenues of $1.5 billion. Analysts had been looking for 47 cents and $1.44 billion. Management also guided FY07 EPS to $1.75-$1.80 ($1.58 consensus) and FY07 revenues to $5.8 billion ($5.71 billion consensus). Morgan Joseph and Friedman Billings subsequently reiterated "buy" recommendations and boosted their price targets to the $44.00-$45.50 range. The share price popped on the earnings news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
The user-programmable integrated circuit allows electronics manufacturers to fine-tune its properties to suit themselves. Such devices were pioneered in 1984, by a San Jose, California outfit that still sells a lot of them.
Altera Corporation (NASDAQ: ALTR) makes high-density programmable logic devices and associated development tools. PLDs are integrated circuits that clients can program themselves, using software that Altera also provides. This allows clients to provide their customers with special-purpose chips that cost less than equivalent custom-designed devices. Altera's circuits are used by thousands of customers in computing, telecommunications, industrial, and automotive applications. Clients include Honeywell (NYSE: HON), Johnson Controls (NYSE: JCI) and Motorola (NYSE: MOT).
The stock has been a steady gainer, since mid-August, moving higher in response to such issues as solid third quarter revenue guidance ($319.7-329.3M vs. $325.1M consensus) and last week's upgrade to overweight by Morgan Stanley. In fact, the price is cycling through a positive eight-week trading channel.
MOST NOTEWORTHY: Toronto Dominion, Cytec Industries, Ceragon Networks, Micron and Navteq were today's noteworthy downgrades:
CIBC downgraded shares of Toronto Dominion (NYSE: TD) to Sector Performer from Outperformer following the Commerce Bancorp (NYSE: CBH) acquisition, as they see integration risks and believes the deal will limit the company's ability to buyback stock.
Cytec Industries (NYSE: CYT) was downgraded to Hold from Buy at Jefferies, as they believe near-term risks to demand and margins could bring a better entry point by 1H08. Target lowered to $75 from $79.
Collins Stewart downgraded shares of Ceragon Networks (NASDAQ: CRNT) to Underperform from Buy on valuation and uncertainties surrounding the stock, which include the NEC infringement issue and increased competition.
Micron Technology (NYSE: MU) was downgraded to Accumulate from Buy at ThinkEquity. The firm is cautious on the sustainability of PC related demand and questions component order levels relative to PC sell through.
Banc of America downgraded shares of Navteq Corporation (NYSE: NVT) to Neutral from Buy following Nokia's (NOK) proposed buyout.
When you make a product that people need and allow them to save money by fine-tuning its properties to suit themselves, your business is liable to do well. That's the way it has gone for the inventor of the user-programmable integrated circuit.
Altera Corporation (NASDAQ: ALTR) sells high-density programmable logic devices and associated development tools. PLDs are integrated circuits that clients can program themselves. This allows them to provide their customers with special-purpose chips that cost less than equivalent custom-designed devices. Altera's circuits reach end users in a wide variety of computing, telecommunications, industrial and automotive products. Clients include Alcatel-Lucent (NYSE: ALU), Honeywell (NYSE: HON), Johnson Controls (NYSE: JCI), Motorola (NYSE: MOT), Nortel Networks (NYSE: NT) and Texas Instruments (NYSE: TXN). For the second year in a row, Altera has been named to the Business Week Hot 100.
The company pleased investors late last month, when it announced Q2 EPS of 22 cents and revenues of $319.7 million. Analysts had been looking for 19 cents and $313.2 million. Management also guided Q3 revenues to $320-329 million ($322.60M consensus).
The Summer Olympics are only days away and what the Chinese had hoped would be their coming out party to celebrate all that is good, may instead become quite the opposite.
Former Vice President Al Gore is doing quite nicely staying out of the current political fray. 
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been looking for 47 cents and $1.44 billion. Management also guided FY07 EPS to $1.75-$1.80 ($1.58 consensus) and FY07 revenues to $5.8 billion ($5.71 billion consensus). Morgan Joseph and Friedman Billings subsequently reiterated "buy" recommendations and boosted their price targets to the $44.00-$45.50 range. The share price popped on the earnings news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside..gif){kind=logo}
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