Analyst Calls

• Medtronic (MDT) to buy from neutral and 1-800-Flowers.com (FLWS) to neutral from sell at Goldman.
• CarMax (KMX) to outperform from perform at Oppenheimer.
• Points International (PTSEF) to buy from neutral at Merriman.
• Nokia (NOK) to market perform from underperform at Morgan Keegan.
• Amdocs (DOX) to overweight from equal weight at Barclays.
• Western Alliance (WAL) to outperform from sector perform at RBC Capital.
• Carbo Ceramics (CRR) to outperform from market perform at BMO Capital.
• Rackspace (RAX) to buy from hold at Benchmark Co.
• Brinker (EAT) to equal weight from underweight at Morgan Stanley.

Continue reading Analyst Calls: BP, EAT, JBLU, KMX, MDT, MYGN, NOK, NTRS, RAX, RDS.A, T ...

Analyst Calls: BP, EAT, JBLU, KMX, MDT, MYGN, NOK, NTRS, RAX, RDS.A, T ... originally appeared on BloggingStocks on Fri, 28 Jan 2011 11:20:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Intel (INTC) was upgraded to overweight from equal weight and Autodesk (ADSK) to equal weight from underweight at Morgan Stanley.
• Citigroup upgraded Blackrock (BLK) to buy from hold.
• 99c Only Stores (NDN) was upgraded to buy from hold at Deutsche Bank.
• PetSmart (PETM) was upgraded to overweight from equal weight at Barclays.
• Piper Jaffray upgraded Ruth's Hospitality (RUTH) and Morton's Restaurant (MRT) to overweight from neutral.
• BioMed Realty (BMR) was upgraded to market perform from underperform at FBR Capital.
• Wells Fargo upgraded Piedmont (PDM) to market perform from underperform.

Continue reading Analyst Calls: AA, AOL, BLK, CSCO, GOOG, INTC, JBL, JBLU, YHOO ...

Analyst Calls: AA, AOL, BLK, CSCO, GOOG, INTC, JBL, JBLU, YHOO ... originally appeared on BloggingStocks on Thu, 11 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Goldman upgraded Citigroup (C) to conviction buy from buy, Principal Financial (PFG) to buy from neutral, and Stancorp Financial (SFG) and Hartford Financial (HIG) to neutral from sell.
• JetBlue (JBLU) was upgraded to overweight from neutral at JPMorgan.
• Barclays upgraded Royal Caribbean (RCL) and Carnival (CCL) upgraded to overweight from equal weight.
• Hollysys Automation (HOLI) was upgraded to buy from hold at Roth Capital.
• RBC Capital upgraded Alliance Data Systems (ADS) to outperform from sector perform.
• RRI Energy (RRI) was upgraded to buy from hold at Citigroup.

Continue reading Analyst Calls: ALTR, ATHN, C, CCL, HD, JBLU, LUV, MSFT, RCL ...

Analyst Calls: ALTR, ATHN, C, CCL, HD, JBLU, LUV, MSFT, RCL ... originally appeared on BloggingStocks on Mon, 25 Oct 2010 11:30:00 EST. Please see our terms for use of feeds.

With close to 60 million users, Twitter is a force corporate marketing departments just can't ignore. The reach offered by this microblogging platform is profound, and skipping it means yielding digital turf to the competition.

Yet, as the country's major brands have flocked to Twitter, not all have mastered it. Some merely push headlines and deals, while others have used it as a way to open a dialogue with their customers, build relationships and ultimately grow their businesses. A study by The Big Money sought to determine the dozen companies that are mastering Twitter and why they are the masters.

Continue reading Tops on Twitter: 12 companies that are doing it right

Tops on Twitter: 12 companies that are doing it right originally appeared on BloggingStocks on Mon, 07 Dec 2009 12:00:00 EST. Please see our terms for use of feeds.

For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.

According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.

Continue reading Low cost carriers own 30% of domestic airline biz, growing fast

Low cost carriers own 30% of domestic airline biz, growing fast originally appeared on BloggingStocks on Tue, 10 Nov 2009 16:15:00 EST. Please see our terms for use of feeds.

Southwest Airlines Co. (NYSE: LUV), the Dallas-based low-cost air carrier, is scheduled to discuss its third quarter 2009 financial results in a conference call Thursday at 11:30 AM ET hosted by CEO Gary Kelly and CFO Laura Wright. You can catch the live webcast on the company's website.

During the three months that ended in September, Southwest began service to Boston Logan, prepared a bid to acquire Frontier Airlines, and declared its 132nd consecutive quarterly dividend. But analysts surveyed by Thomson Reuters expect the company to report that earnings fell from 9 cents per share a year ago to a penny per share. Sales for the quarter are expected to be 9.7% lower to $2.6 billion.

Continue reading Southwest Airlines to post a profit for Q3?

Southwest Airlines to post a profit for Q3? originally appeared on BloggingStocks on Wed, 14 Oct 2009 16:45:00 EST. Please see our terms for use of feeds.

August brought more misery to the airline industry in the United States. Seven of the country's nine largest carriers saw traffic drop, with only Southwest Airlines (NYSE: LUV) and JetBlue Airways Corp (NASDAQ: JBLU) bucking the trend. The continued upward climb of unemployment, tighter corporate budgets and sluggish demand for leisure travel has resulted in fewer passengers in seats.

JetBue was the only carrier not to report a drop in available seat miles (ASMs), the primary measure of airline productivity. Load factors, however, which indicate how full a plane is, tended to be higher, largely a result of flights that have been cut in an effort to reduce costs.

Continue reading August a sluggish month for U.S. airlines

August a sluggish month for U.S. airlines originally appeared on BloggingStocks on Sun, 06 Sep 2009 15:10:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• FBR Capital upgraded Frontline (NYSE: FRO) to Market Perform from Underperform to reflect the company's above-average day rates and alleviated near-term financing pressures. The firm raised its target on shares to $23 from $14.
• Baird upgraded Varian Medical (NASDAQ: VARI) to Outperform from Neutral and said checks at ESTRO meeting indicate European radiation therapy market demand will remain "respectable" in 2010 and that launch of Unique could drive incremental demand in developing markets. The firm has a $49 target on shares.
• Goldman believes GameStop (NYSE: GME) Street expectations are beatable and valuation is attractive. The firm upgraded shares to Conviction Buy from Neutral and has a $28 target.
• Borg-Warner (NYSE: BWA) was upgraded to Outperform from Market Perform at Wells Fargo.
• KKR Financial (NYSE: KFN) was upgraded to Outperform from Market Perform at JMP Securities.
• Cathay Pacific (OTC: CPCAY) was upgraded to Outperform from Neutral at Credit Suisse.

Continue reading Analyst upgrades, downgrades and initiations: BA, FRO, GENZ, JBLU, MS, VARI ...

Analyst upgrades, downgrades and initiations: BA, FRO, GENZ, JBLU, MS, VARI ... originally appeared on BloggingStocks on Mon, 31 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

There may be new hope for the perpetually ailing airline industry. While I wouldn't expect these companies to become top performers anytime soon, it looks like the best revenue stream is the one nobody's been talking about: change and cancellation fees.

These penalties, which can reach up to $150, bring $2 billion in revenue into the industry annually. According to the Department of Transportation, they were good for $527.6 million in the first quarter -- in the United States alone. This is 3.2% of U.S. airline revenue.

American Airlines parent AMR (NYSE: AMR) raked in $116 million in revenue from these penalties in the first quarter of 2009 -- compared to $108 million from the more highly publicized extra bag fees. For JetBlue (NASDAQ: JBLU), the numbers are smaller (JetBlue, of course, isn't as big as AMR) but no less compelling. By pumping its change and cancellation fee from $100 to $150, the airline scored $32.2 million in Q1 2009, up from $25 million in Q1 2008.

Continue reading Could cancellation fees save the airlines?

Could cancellation fees save the airlines? originally appeared on BloggingStocks on Thu, 30 Jul 2009 11:40:00 EST. Please see our terms for use of feeds.

JetBlue Airways Corp. (NASDAQ: JBLU) is looking to sell 20 million shares of common stock and $150 million in convertible debt. Miserable conditions for the airline industry have led the low-cost carrier to turn to financial markets for the infusion that operations can't seem to deliver.

The debt, which is convertible into common stock, will be sold in two $75 million series. And the 20 million common shares would raise another $101 million (at yesterday's closing price of $5.03). If there's enough demand for the debt and equity securities, JetBlue may sell another 3 million shares of common stock and another $11.25 million in debt.

JetBlue isn't alone in raising capital. US Airways Group Inc. (NYSE: LCC) is planning to ask its shareholders to approve a measure that would double the amount of common shares it could issue to 400 million. The answer will come at the company's annual meeting on June 10, 2009.

JetBlue shakes tin cup, seeks around $250 million originally appeared on BloggingStocks on Wed, 03 Jun 2009 08:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) Q1 profit blew away estimates, sending shares soaring.
• Apple Inc. (NASDAQ: AAPL) topped analysts expectations and offered conservative guidance.
• Boeing Co. (NYSE: BA) reported better-than-expected results but warned that if faced challenges.
• Coach Inc. (NYSE: COH) topped Q3 profit estimates and announced the start of quarterly dividends.
• Continental Airlines Inc. (NYSE: CAL) widened is net loss in Q1 but still beat low Wall Street estimates.

Continue reading Earnings highlights: Apple, Ford, Microsoft, Wells Fargo, Boeing, American Express and more

Earnings highlights: Apple, Ford, Microsoft, Wells Fargo, Boeing, American Express and more originally appeared on BloggingStocks on Sat, 25 Apr 2009 08:40:00 EST. Please see our terms for use of feeds.

After American Airlines parent AMR Corp. (NYSE: AMR) reported surprising first-quarter results today, eyes turn next to rival Southwest Airlines Co. (NYSE: LUV), which is scheduled to discuss its first-quarter results tomorrow, April 16, in a conference call at 11:30 AM ET with CEO Gary Kelly and CFO Laura Wright. You can catch the live webcast of the call on the company's website.

For the quarter that saw Southwest declare its 130th consecutive quarterly dividend and named by Fortune magazine as one of the most admired companies in the world, analysts polled by Thomson Reuters expect the Dallas-based airline to report a loss of $0.01 per share, compared to a profit of $0.06 cents per share in the same period of the previous year. Revenue for the quarter is expected to total $2.4 billion, 5.1% lower than a year ago. Southwest's earnings have beat estimates in the past five quarters, by as much as a nickel a share.

Continue reading Earnings preview: Southwest Airlines to report Q1 in the red?

Earnings preview: Southwest Airlines to report Q1 in the red? originally appeared on BloggingStocks on Wed, 15 Apr 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Madoff, airlines, Wall Street: We don't need no stinkin' regulation!

Madoff, airlines, Wall Street: We don't need no stinkin' regulation! originally appeared on BloggingStocks on Wed, 24 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

Continue reading BusinessWeek: Be wary of stocks under $10

BusinessWeek: Be wary of stocks under $10 originally appeared on BloggingStocks on Wed, 02 Jul 2008 15:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The LiveTV unit of JetBlue Airways Corporation (NASDAQ: JBLU) is buying Verizon Communications Inc's (NYSE: VZ) Airfone network, the Wall Street Journal reported.
• As Lehman Brothers Holdings Inc (NYSE: LEH) is about to report a second quarter loss of about $2B, the firm is closing in on raising over $5B in new capital, the Wall Street Journal reported. Once source of Lehman's new funding is reportedly the New Jersey Division of Investment.
• The Financial Times reported that General Electric Company's (NYSE: GE) NBC Universal and British private equity firm GMT Communications Partners are expected to soon acquire Bigpoint, a German-based computer games website.

• According to the Independent, the credit crunch has cost the jobs of about 100 bankers at Barclays Plc (NYSE: BCS). The bank cut about 20 individuals on the leveraged finance team and will reportedly cut 80 more in investment banking and IT support.

Newspaper wrap-up: NBC, British private equity firm expected to buy German games site originally appeared on BloggingStocks on Mon, 09 Jun 2008 08:10:00 EST. Please see our terms for use of feeds.

JetBlue sued for seating passenger on toilet originally appeared on BloggingStocks on Tue, 13 May 2008 16:29:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported a strike-related Q1 loss.
• Arch Coal Inc. (NYSE: ACI) Q1 profit tripled on increased demand and higher prices.
• Boeing Co. (NYSE: BA) posted better-than-expected earnings despite Dreamliner delays.
• Coach Inc. (NYSE: COH) better-than-expected quarter didn't impress Jim Cramer.
• ConocoPhillips (NYSE: COP) reported Q1 earnings and revenue above analysts' forecasts.
• Delta Air Lines Inc. (NYSE: DAL) reported a big loss on a one-time charge and fuel costs.
• Dow Chemical Co. (NYSE: DOW) posted a smaller-than-forecast profit drop and predicted a good Q2.
• EI DuPont de Nemours & Co. (NYSE: DD) Q1 earnings rose 26% but missed expectations.
• Ford Motor Co. (NYSE: F) surprised Wall Street by swinging to a profit in the first quarter.
• Goodyear Tire and Rubber Co. (NYSE: GT) easily surpassed analyst estimates for the first quarter.
• Halliburton Co. (NYSE: HAL) Q1 earnings and revenue rose due to international growth.
• Hershey Co. (NYSE: HSY) profit fell but was in line with analysts' expectations.

Continue reading Earnings highlights: Ford, Boeing, McDonald's, PepsiCo, JetBlue and others

Earnings highlights: Ford, Boeing, McDonald's, PepsiCo, JetBlue and others originally appeared on BloggingStocks on Sun, 27 Apr 2008 11:40:00 EST. Please see our terms for use of feeds.

After hitting a one-year high of $11.99 in July, the stock hit a one-year low of $4.30 in January. JBLU opened this morning at $5.10. So far today the stock has hit a low of $4.50 and a high of $5.11. As of 12:40, JBLU is trading at $4.57, down $0.36 (-7.3%). The chart for JBLUlooks neutral and deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a December covered call at the $5 level. A covered call is an options position that combines the purchase of stock with the sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 34.4% return in eight months if JBLU is above $5 at December expiration. JetBlue would have to fall by more than 18% before we would start to lose money. Learn more about this type of trade here.

Continue reading JetBlue (JBLU) pushed lower by record oil, despite hopeful earnings

JetBlue (JBLU) pushed lower by record oil, despite hopeful earnings originally appeared on BloggingStocks on Tue, 22 Apr 2008 14:44:00 EST. Please see our terms for use of feeds.

Analysts surveyed by Thomson Financial expect Southwest Airlines Co. (NYSE: LUV) and Pfizer Inc. (NYSE: PFE) to post smaller profits in the first quarter. Both companies are scheduled to report results on Wednesday.

Southwest is expected to essentially break even as far as earnings are concerned, which is down from the same period in 2007 when it earned four cents per share. The company has beat quarterly estimates recently. It only just beat the consensus third-quarter 2007 estimate, but beat the fourth-quarter estimate by 21.2%.

Dallas-based Southwest's low-cost, no-frills approach has made it one of the leading U.S. airlines. In the past year, the company's revenues were $9.8 billion and its net income totaled $645 million. Its EPS growth forecast for the year is -28.7%, worse than the industry average but better than that of rival JetBlue Airways (NASDAQ: JBLU). The consensus recommendation of analysts remains to buy Southwest.

The stock has fallen 18.5% in the past year and trades at a P/E of 14.7. Shares closed Tuesday at $12.35.

Continue reading Southwest Airlines and Pfizer Q1 profits expected to fall

Southwest Airlines and Pfizer Q1 profits expected to fall originally appeared on BloggingStocks on Wed, 16 Apr 2008 10:37:00 EST. Please see our terms for use of feeds.

I have had some clients ask me, what industry I think will benefit from the $600 rebate checks that are due to be sent out as part of the U.S. economic stimulus package. I think airlines will benefit, especially lower cost carriers like Southwest (NYSE: LUV) and Jet Blue (NASDAQ: JBLU).

The USA Today has an article about the kind of vacation you can have for $600. The article says: "With most Americans expecting to receive a tax rebate of up to $600 ($1,200 for married couples), there are plenty of ways to get the most vacation for your buck, say travel experts. Whether it's a cruise, a tropical paradise, or family travel, these trips can all be done for under $600 a person."

Because we aren't talking about flying around the world or across the Atlantic for that measure, trips to Las Vegas or Orlando, for example, will fit the family, and of course people need a way to get to these destinations, so that's how the airlines become interesting. Throw into the mix potentially stable or even lower fuel costs, and for investors looking for a way to play the "Rebate check" game, you may want to take a look at the airlines.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 4/2/08

Airlines stand to profit from your $600 rebate check originally appeared on BloggingStocks on Wed, 02 Apr 2008 16:23:00 EST. Please see our terms for use of feeds.