Analyst upgrades:

• FBR Capital upgraded KBW, Inc (NYSE: KBW) to Market Perform from Underperform as it sees increased capital-raising opportunities for small and mid-sized banks and believes the company's quarter is off to a strong start. The firm raised its target price to $23 from $18.
• Pali Capital upgraded Morgan Stanley (NYSE: MS) to Buy from Neutral on expectations the company's strategic shift towards advisory, distribution and retail will be monetized sooner than expected and its capital markets business is gaining traction. The firm set a $33 target on the stock.
• Baird upgraded Stericycle (NASDAQ: SRCL) to Outperform from Neutral and raised its target to $58 from $55 based on valuation predictable earnings, and its market leading platform.
• Apollo Investment (NYSE: AINV) was raised to Outperform from Market Perform at Keefe Bruyette.
• HSBC Holdings (NYSE: HBC) was lifted at Goldman to Buy from Neutral.
• Dow Chemical (NYSE: DOW) was upgraded to Outperform from Neutral at Credit Suisse.

Continue reading Analyst upgrades, downgrades and initiations: MS, BBC, DOW, COST, VLO, WSM ...

Analyst upgrades, downgrades and initiations: MS, BBC, DOW, COST, VLO, WSM ... originally appeared on BloggingStocks on Mon, 11 May 2009 11:50:00 EST. Please see our terms for use of feeds.

Pity poor Macrovision (NASDAQ: MVSN). First it unloads the print version of TV Guide for a measly $1 (and has to loan OpenGate Capital $9.5 million in cash to help cover the obligations assumed). Now, three weeks after agreeing to sell TVGuide.com and the TV Guide Channel to Alan Shapiro and One Equity Partners for $300 million, it turns around and dumps that deal in favor of a $255 million offer from Lions Gate (NYSE:LGF).

According to C21Media.net, the CEO of Macrovision defended the change as improving the speed and certainty of the deal closing. Apparently, the original deal contained a $45 million earn-out clause that could have reduced the final sale price. Lions Gate is also flush with cash, which never hurts.

In 2007, Macrovision acquired the properties as part of its $2.8 billion purchase of Gemstar-TV Guide. To make that deal, Microvision took on $800 million in new debt.

The move makes sense for Lions Gate, as both companies are busily expanding their stables of cable channels and internet-platform video entertainment production and distribution channels. In a gloomy market that has seen LGF stock lose over 42% of its value in the past six months, perhaps this move will serve to reinvigorate investors.

TVGuide.com, channel unsold, resold for $45 million less originally appeared on BloggingStocks on Tue, 06 Jan 2009 15:15:00 EST. Please see our terms for use of feeds.

So, I just read that Lions Gate Entertainment (NYSE: LGF) purchased TVGuide.com and TV Guide Network from Macrovision Solutions Corp. (NASDAQ: MVSN) for over $250 million. Here's the press release. The question I have is: Why would Lions Gate want to do this?

I know I'm going to be called pretty ignorant by some for even thinking to disagree with this move, but nevertheless, I disagree with this move. The reason is simple (to me, at least). If I were a shareholder of the company, I think I'd rather have management focus on creating content as opposed to spending a lot of money to buy up a platform. Sure, these TV Guide properties have a high level of brand equity and are indeed widely distributed. But a quarter of a billion dollars is a lot of money, a sum that could have been allocated toward new movie franchises and content acquisitions.

Does Lions Gate really want the hassle of integrating the TV Guide portfolio into its business? Won't that distract the company from focusing on its desire to build a great library of movies and television shows so that it can become an attractive buyout candidate someday? I mean, let me get specific for a second. Take the Saw franchise. That's getting a little long in the tooth, isn't it? I look at that quarter-billion bucks and see a bunch of seed money for a ton of new concepts. If only a few made it to Saw-level, then I can only imagine that it would help shareholder value.

Continue reading Lions Gate buys TV Guide properties: Why?

Lions Gate buys TV Guide properties: Why? originally appeared on BloggingStocks on Tue, 06 Jan 2009 00:47:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Thomas Weisel initiated Marvel Entertainment (NYSE: MVL) with a Market Weight rating and $34 target citing valuation and lack of meaningful operational catalysts until 2010.
  
• Kaufman Bros. assumed Macrovision (NASDAQ: MVSN) with a Buy rating and $27 target. The firm believes the merger with Gemstar TV Guide creates a powerhouse in digital media technology licensing with a compelling financial model.
  
• Wachovia expects K-Sea Trans (NYSE: KSP) to benefit from stable petroleum product demand, longer-term contracts, and aggressive new building program. Shares were started with an Outperform rating.

• Safe Bulkers (NYSE: SB) was initiated with a Neutral rating at Merrill Lynch and an Outperform rating and $25 target at Credit Suisse.
  
• Stephens initiated Life Time Fitness (NYSE: LTM) with an Overweight rating and $37 target and Town Sports (NASDAQ: CLUB) with an Equal Weight rating and $10 target.

Analyst initiations: MVL, MVSN, KSP, SB, LTM, CLUB originally appeared on BloggingStocks on Tue, 08 Jul 2008 12:12:00 EST. Please see our terms for use of feeds.

Macrovision Solutions (NASDAQ:MVSN) was started as a "buy" at Kaufman Brothers, according to the AP.

Bankrate (NASDAQ:RATE) Cut to Hold from Buy at Collins Stewart, according to StreetInsider.

Early analyst calls (MMC) (NCR) originally appeared on BloggingStocks on Tue, 08 Jul 2008 08:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Keefe Bruyette upgraded shares of Webster Financial (NYSE: WBS) to Outperform from Market Perform on valuation as they feel the company is adequately capitalized and in a position to withstand the weakening credit markets.
  
• JP Morgan upgraded Eaton (NYSE: ETN) to Overweight from Neutral citing bullish management comments at its conference last week.
  
• Piper upgraded Macrovision (NASDAQ: MVSN) to Buy from Neutral citing the closure of the Gemstar deal.

• Lehman upgraded U.S. stocks to Overweight from Underweight.
  
• Goldman added Hess Corp (NYSE: HES) and Mosaic (NYSE: MOS) to its Conviction Buy List.
  
• Novo Nordisk (NYSE: NVO) was raised at HSBC to Neutral from Underweight.
  
• Jefferies upgraded ASM International (NASDAQ: ASMI) to Hold from Underperform.

Analyst upgrades: WBS, ETN and MVSN originally appeared on BloggingStocks on Mon, 09 Jun 2008 12:12:00 EST. Please see our terms for use of feeds.

J.P. Morgan downgraded Murphy Oil (NYSE: MUR) from "neutral" to "underweight," according to Briefing.com. The news service writes that Frontier Oil (NYSE: FTO) was downgraded to "neutral" from "buy" at Goldman Sachs.

Briefing.com writes that AbitibiBowater (NYSE: ABH) started as Outperform at RBC Capital Markets. The website also reports that Macrovision (NASDAQ: MVSN) was raised to Buy at Piper Jaffray

Early analyst calls: FTO, MUR, ABH originally appeared on BloggingStocks on Mon, 09 Jun 2008 07:38:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies upgraded shares of Macrovision (NASDAQ: MVSN) to Buy from Hold on valuation, as they think the stock looks "very cheap" if the Gemstar (NASDAQ: GMST) deal does not get done; if the deal does get done, they think investors will get paid, but admits it may take longer.
  
• JP Morgan upgraded SAIC Inc. (NYSE: SAI) to Overweight from Neutral as they expect the company to beat consensus estimates as margins surprise to the upside given cost reductions and cargo detection sales.
  
• Dassault Systemes (NASDAQ: DASTY) was upgraded to Overweight from Equal Weight at Morgan Stanley as they find the company's recurring business and lack of exposure to troubled markets attractive in the current market.

• GSI Commerce (NASDAQ: GSIC) was upgraded to Outperform from Underperform at Bear Stearns.
  
• Lehman upgraded Cigna (NYSE: CI) to Equal Weight from Underweight.
  
• Citigroup upgraded Alpha Bank (OTC: ALBKY) to Buy from Hold.

Analyst upgrades: Macrovision, SAIC, Dassault Systemes originally appeared on BloggingStocks on Thu, 10 Jan 2008 11:51:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Futures edge lower, awaiting jobs data

Before the bell: Futures edge lower, awaiting jobs data originally appeared on BloggingStocks on Fri, 07 Dec 2007 07:49:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Sunco Inc (NYSE: SUN) was downgraded to Neutral from Buy at Banc of America, as the firm believes Sunoco's valuation discount is justified since its net margin/barrel is almost $2.50 below its closest peer due to inferior assets.
  
• Deutsche Bank downgraded shares of Primedia Inc (NYSE: PRM) to Hold from Buy on valuation.
  
• Citigroup downgraded shares of WPP Group (NASDAQ: WPPGY) to Hold from Buy and shares of Publicis Groupe (NYSE: PUB) to Sell from Hold to reflect their more cautious view of the advertising sector.
  
• Goldman sees better catalysts at other E&Ps and downgraded Newfield Exploration Company (NYSE: NFX) to Neutral from Buy.

• Jefferies downgraded Macrovision Corporation (NASDAQ: MVSN) to Hold from Buy.
  
• Merrill Lynch downgraded American Eagle Outfitters (NYSE: AEO) to Sell from Neutral.
  
• Citigroup downgraded Bachoco (NYSE: IBA) to Hold from Buy.
  
• Wimm-Bill-Dan Foods (NYSE: WBD) was downgraded to Sell from Buy at UBS.

Analyst downgrades: SUN, PRM, WPPGY, PUB and NFX originally appeared on BloggingStocks on Wed, 12 Sep 2007 10:40:00 EST. Please see our terms for use of feeds.

The profits of many firms are increasingly dependent on the security of proprietary digital content. An outfit in Santa Clara, California is among the better known providers of digital life-cycle management solutions.

Macrovision Corporation (NASDAQ: MVSN) provides anti-piracy and content protection technologies, digital rights management products and embedded licensing technologies that enable firms to protect, enhance and distribute digital content. The company's copyright protection and video scrambling methods are used by commercial videocassette duplicators, music labels, software companies, set-top decoder manufacturers and the major motion picture studios. Clients include 3M Corporation (NYSE: MMM), Broadcom (NASDAQ: BRCM), Cisco Systems (NASDAQ: CSCO), Eastman Kodak (NYSE: EK), Electronic Arts (NASDAQ: ERTS), Motorola (NYSE: MOT) and Nokia (NYSE: NOK).

The firm pleased investors earlier in the month, when it announced Q1 EPS of 27 cents and revenues of $65.2 million. Analysts had been looking for 23 cents and $65.1 million. Management also guided Q2 EPS to 24-27 cents (26 cent consensus), Q2 revenues to $65-$68 million ($67.3M consensus), FY07 EPS to $1.25-$1.35 ($1.27 consensus) and FY07 revenues to $280-$290 million ($287.8M consensus). Jefferies subsequently upgraded the shares to "buy" and boosted its price target to $31. The MVSN price popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with five "strong buys" and six "buys." Analysts see a 21% growth rate, through the next year. The MVSN Price to Book ratio (2.84), Price to Free Cash Flow ratio (18.18) and EPS Growth rate (127.72%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $18.84 and $29.20. A stop-loss of $23.60 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Macrovision Corporation: Guarding your digital content originally appeared on BloggingStocks on Wed, 23 May 2007 13:17:00 EST. Please see our terms for use of feeds.