The focus of last week's preview was on oil and energy companies, and we saw that big oil had a good week, reporting better-than-expected results and record profits driven by high prices in the third quarter. Energy-related companies are well represented again this week and expectations in general remain high.

Early in the week, analysts surveyed by Thomson Financial anticipate that the big earnings gainers will include EOG Resources Inc. (NYSE: EOG), Anadarko Petroleum Corp. (NYSE: APC), and Cimarex Energy Co. (NYSE: XEC), which are expected to post profits of $2.24 per share (up 64.7% from a year ago), $1.48 per share (up 52.7%) and $2.26 per share (up 61.1%) respectively. All three of them have offered positive surprises in recent quarters, and analysts on average recommend buying EOG and Anadarko. Other expected big earnings gainers early in the week include Forest Oil Corp. (NYSE: FST), Pioneer Natural Resources Co. (NYSE: PXD), Comstock Resources Inc. (NYSE: CRK), and MasterCard Inc. (NYSE: MA). The earnings of phosphates producer Innophos Holdings Inc. (NASDAQ: IPHS) are expected to have risen 92.3% to $3.37 per share. Innophos beat estimates in the previous quarter by a whopping 210%, and analysts have been impressed with Innophos's lack of debt and pricing gains despite the slowing economy, so, on average, they recommend buying IPHS.

Also early in the week, analysts expect Goodyear Tire & Rubber Co. (NYSE: GT), Kaiser Aluminum Corp. (NASDAQ: KALU), and Oshkosh Corp. (NYSE: OSK) to report that their profits fell 52.9% to $0.33 per share, 45.1% to $0.67 per share, and 41.2% to $0.67 per share, respectively. These companies have tended to beat estimates in recent quarters, and the consensus recommendations of analysts are to buy them. However, PMI Group Inc. (NYSE: PMI), one of the largest private mortgage insurance providers in the U.S., is expected to take another hit as the housing slump drags on. The California-based company is expected to have widened its net loss from $1.04 per share a year ago to $2.43 per share in the most recent quarter. Its shares are down 84.5% from a year ago, and have been trading recently near their 52-week low.

Continue reading The week in preview: Expectations remain high for energy and oil

The week in preview: Expectations remain high for energy and oil originally appeared on BloggingStocks on Sun, 02 Nov 2008 12:30:00 EST. Please see our terms for use of feeds.

Charter Communications (NASDAQ: CHTR) raised another $1 billion in junk bonds. That may not help. The cable company is a potential candidate for a Chapter 11 filing.

According to The Wall Street Journal, "Rating company Standard & Poor's affirmed its single-B-minus credit rating on Charter, but revised the loss-making company's outlook to negative from stable due to increased concerns about its liquidity."

It is amazing that a company in such bad shape could raise money at all. The firm is controlled by billionaire Paul Allen. It has $19 billion in debt already. In the December quarter, the company had only $85 million in operating profit on $1.553 billion. Debt service in the quarter was $464 million.

Charter has to spend the money to upgrade its network the same way that other cable companies are. Competition from telecom fiber offering and satellite TV are making the cable industry's life harder. Charter does not have access to the kind of capital it may need because its financials are stretched so thin.

The company's stock has fallen from a 52-week high of $4.93 to $0.93. If Charter sees any fall-off in operating income, the stock could go to zero.

Douglas A. McIntyre is an editor at 247wallst.com.

More junk from Charter (CHTR) originally appeared on BloggingStocks on Wed, 12 Mar 2008 10:22:00 EST. Please see our terms for use of feeds.

Short sellers trading stocks listed on Nasdaq made big bets against cable and financial shares, according to data from January 15. The numbers compare to short interest in the same companies on December 15, 2007.

The short interest in cable company Charter Communications (NASDAQ: CHTR) moved up 4 million to 99.3 million. Charter's stock has fallen close to $1. It carries $19 billion in debt and there is a growing concern that operating profits will not cover interest. Controlling shareholder Paul Allen may have to put more debt into the company.

Short interest in Comcast (NASDAQ: CMCSA) rose almost 600,000 shares to 45.1 million. After hitting a record high last year, shares of the nation's largest cable company have fallen one-third on concerns that large telephone companies will take its TV and broadband subscribers with their new fiber-to-the-home products.

Short interest in E*Trade (NASDAQ: ETFC) moved up 9.9 million shares to 91.2 million. The market is obviously willing to bet that there are more problems with the company's balance sheet. Short interest in healthier rival TD Ameritrade (NASDAQ: AMTD) fell 5.1 million to 8.6 million shares. The market is not shorting the discount brokerage industry, just the weakest company in the group.

Douglas A. McIntyre is an editor at 247wallst.com.

Shorts move into financial and cable stocks: CMCSA, CHTR, ETFC originally appeared on BloggingStocks on Mon, 28 Jan 2008 10:10:00 EST. Please see our terms for use of feeds.

Cable stocks have fallen sharply and most trade near 52-week lows, but that is not keeping short sellers from continuing to believe that they could go lower. The short interest in Comcast (NASDAQ: CMCSA) and Charter (NASDAQ: CHTR) went up on December 14 compared to November 30 according to data from Nasdaq.

The slide in cable shares began around mid-year, when comments from Comcast indicated that the new TV-over-fiber products from telecom companies like Verizon (NYSE: VZ) were starting to take cable customers. Up until recently, cable was able to market voice, TV,and broadband as one package into the home. The telephone companies could not match that. But fiber installations have changed the picture, and competition is fierce.

Cable companies are starting to see slowing growth in their subscriber bases. That could push them to drop rates, and it is forcing them into capital expenditures to improve the speed of their own networks. Both moves put pressure on earnings.

Continue reading Shorts bet cable's problems aren't over: CMCSA, CHTR

Shorts bet cable's problems aren't over: CMCSA, CHTR originally appeared on BloggingStocks on Thu, 27 Dec 2007 10:43:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Banc of America started shares of SuperValu Inc (NYSE: SVU) with a Sell rating and $34 target as they believe the company will struggle to modernize its store base and reset its pricing to more competitive levels over the next 12 months.
  
• William Blair initiated SunPower (NASDAQ: SPWR) shares with an Outperform rating, citing the company's large market opportunity and strong technology/market positioning.
  
• LKQ (NASDAQ: LKQX) was started at Deutsche Bank with a Hold rating and $35 target. The firm believes the company's growth projections are priced into shares.
  
• JP Morgan initiated Charter Communications (NASDAQ: CHTR) with an Overweight rating, as they expect the company to be able to refinance its maturing debt over the next five years and generate attractive returns.

• B. Riley started Wsfs Financial Corporation (NASDAQ: WSFS) with a Buy rating and $69 target.
  
• Bear initiated Commercial Vehicle Group (NASDAQ: CVGI) with a Peer Perform rating and Tenneco Inc (NYSE: TEN) with an Underperform rating.
  
• Cowen started Micrus Endovascular Corporation (NASDAQ: MEND) with an Outperform rating.

Analyst initiations: SVU, SPWR, LKQX and CHTR and PUB originally appeared on BloggingStocks on Mon, 01 Oct 2007 11:30:00 EST. Please see our terms for use of feeds.

• Charter grew revenue 10.7% and EBITDA 13.2% on a pro forma basis, both solid numbers. Remember, many of Charter's assets are the most directly impacted by satellite competition. The triple-play offering--voice, video and data--is beginning to show up in its results.
• Revenue Generating Unit (RGU) growth was the highest level in five years, adding 332,000 RGUs.
• The VOIP addition to the company's product offerings is finally providing the revenue and operating leverage lift to get it out of its overly leveraged situation.
• Another positive for Charter is the competitive threat from RBOCs is limited since only 2% of its footprint.
• The commercial communications business hit $300 million in sales, essentially a new revenue source for the company.

Charter Communications is looking good, finally originally appeared on BloggingStocks on Fri, 04 May 2007 11:15:00 EST. Please see our terms for use of feeds.