Analyst Upgrades

• Marriott (MAR) to outperform from market perform at Wells Fargo.
• Quest Diagnostics (DGX) and Owens-Illinois (OI) to outperform from neutral at Credit Suisse.
• FirstMerit (FMER) to outperform from perform at Oppenheimer.
• Safeway (SWY) to hold from sell at Citigroup.
• Babcock & Wilcox (BWC) to buy from neutral, as well as Jacobs Engineering (JEC) and W. R. Berkley (WRB) to neutral from sell, at Goldman.
• Pioneer Natural (PXD) to overweight from equal weight at Barclays.
• Teekay Tankers (TNK) to buy from underperform at BofA/Merrill.

Continue reading Analyst Calls: BP, DGX, DNDN, MAR, PM, PXD, SWY, TNK, TRV ...

Analyst Calls: BP, DGX, DNDN, MAR, PM, PXD, SWY, TNK, TRV ... originally appeared on BloggingStocks on Tue, 29 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Altria (MO) falls on new legal precedent

Altria (MO) falls on new legal precedent originally appeared on BloggingStocks on Fri, 13 Feb 2009 13:20:00 EST. Please see our terms for use of feeds.

Phillip Morris Int'l (PM) increases dividend originally appeared on BloggingStocks on Fri, 29 Aug 2008 13:49:00 EST. Please see our terms for use of feeds.

"With $37.2 billion in revenues in 2007, Kraft Foods (NYSE: KFT) is the largest food manufacturer in the U.S. and second-largest worldwide," notes leading turnaround stock expert George Putnam.

The editor of The Turnaround Letter explains, "New management has begun to shake things up and the turnaround program is well underway." Here's the advisor's review.

"The roots of some of Kraft's products reach all the way back to 1767, but it wasn't until 1903 that James L. Kraft started his wholesale cheese business from a horse drawn wagon in Chicago. Today, Kraft produces many of the best-known food brands in the world.

"In 1988, Philip Morris (renamed Altria) purchased Kraft, and in 2000 it integrated the purchase of Nabisco into Kraft. Altria sold a small stake to the public in 2001, but maintained majority control until 2007, when the company was completely spun off as an independent company once again.

"Under the Altria umbrella, Kraft stagnated, with declining revenues and little product innovation. As a result, the stock price today is within $1 of the price where it was when first sold to the public in mid-2001.

"New management has begun to shake things up at Kraft. In June 2006, veteran food executive Irene Rosenfeld became CEO, returning to Kraft from a stint at Pepsico running its Frito-Lay division.

Continue reading Turnaround Kraft (KFT): New management 'shakes things up'

Turnaround Kraft (KFT): New management 'shakes things up' originally appeared on BloggingStocks on Fri, 22 Aug 2008 13:04:00 EST. Please see our terms for use of feeds.

• AFLAC Inc. (NYSE: AFL) reported better-than-expected earnings for the first quarter.
• Ambac Financial Group Inc. (NYSE: ABK) posted a wider-than-expected loss; shares hit new low.
• Amdocs Ltd. (NYSE: DOX) beat Q2 estimates on strength in the managed services businesses.
• Amphenol Corp. (NYSE: APH) beat expectations in the first quarter and raised its guidance.
• Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) posted a larger-than-estimated Q1 loss.
• Aptar Group Inc. (NYSE: ATR) posted record Q1 results and raised its Q2 guidance.
• Bank of America (NYSE: BAC) Q1 earnings plunged on further housing-related write-downs.
• Brinker International Inc. (NYSE: EAT) narrowly beat earnings expectations on cost cutting.
• Bristol-Myers Squibb Co. (NYSE: BMY) beat analysts' estimates for the first quarter.
• Credit Suisse Group (NYSE: CS) reported a wider-than-forecast loss on subprime-related write-downs.
• Cree Inc. (NYSE: CREE) earnings slipped while revenues soared 29%.
• Eli Lilly & Co. (NYSE: LLY) reported worse-than-expected Q1 earnings on discontinued product charge.
• Gannet Inc. (NYSE: GCI) beat low expectations as earnings and revenue continue slump.
• Hasbro Inc. (NYSE: HAS) posted better-than-expected Q1 earnings on international strength.
• JAKKS Pacific Inc. (NASDAQ: JAKK) missed Q1 expectations on restructuring and litigation costs.
• Kimberly-Clark Corp. (NYSE: KMB) beat EPS estimates by a penny, as revenue jumped 10%.

Continue reading Earnings highlights: Bank of America, Merck, Mattel, Phillip Morris, AFLAC and others

Earnings highlights: Bank of America, Merck, Mattel, Phillip Morris, AFLAC and others originally appeared on BloggingStocks on Sat, 26 Apr 2008 09:40:00 EST. Please see our terms for use of feeds.

Philip Morris (NYSE: PM) closed at $50.60 Tuesday.

• Altria Group (NYSE: MO) completed its spin-off of PM on March 31.
  
• PM over all option implied volatility is at 23 according to Track Data.

Volatility Index S&P 500 Options-VIX at 22.36; 10-day moving average is 23.98

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Philip Morris volatility at 23 after spin-off from Altria Group originally appeared on BloggingStocks on Wed, 09 Apr 2008 09:33:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: WSP Holdings, Harris and XTO Energy were today's noteworthy initiations:

• Oppenheimer believes WSP Holdings (NYSE: WH) is benefiting from rapid growth in the oil and gas exploration market and a move toward deeper and harsher environment drilling. The firm has an Outperform rating and $9.50 target on the stock.
  
• UBS assumed Harris (NYSE: HRS) with a Buy rating and $63 target, as they see upside to the company's FY09 estimates driven by RF Communications. UBS views the recent pullback as a buying opportunity.
  
• Morgan Keegan is positive on XTO Energy's (NYSE: XTO) projected 20% production growth, value building through acquisitions, and valuation; shares were initiated with an Outperform rating.

OTHER INITIATIONS:

• Goldman started Philip Morris (NYSE: PM) with a Buy rating and $60 target.
  
• Lamar Advertising (NYSE: LAMR) was assumed with a Sell rating at Merrill Lynch.
  
• Broadpoint initiated Nova BioSource (AMEX: NBF) with a Buy rating.

Analyst initiations: WH, HRS and XTO originally appeared on BloggingStocks on Wed, 02 Apr 2008 11:57:00 EST. Please see our terms for use of feeds.

Philip Morris (NYSE: PM) closed at $50.58.

Altria Group (NYSE: MO) completed its spin-off of PM on March 31.

Goldman has a 12-month price target of $60 on PM and says: "A premier tobacco company deserves a premium valuation."

PM overall option implied volatility is at 26 according to Track Data.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Philip Morris spun-off from Altria Group originally appeared on BloggingStocks on Wed, 02 Apr 2008 09:20:00 EST. Please see our terms for use of feeds.

The U.S. Supreme Court rejected Big Tobacco's appeal [subscription required] to throw out all of the remaining $145 billion class action against the major tobacco companies. Although the Florida Supreme Court had dismissed most of the case, 700,000 plaintiffs received the right to "use findings from the extensive jury trial to bring new cases against the tobacco companies," according to The Wall Street Journal. It gives the smokers and their families the ability to use old evidence in a new case.

A number of investors questioned the plan for Philip Morris parent, Altria (NYSE: MO) to spin-off its international tobacco operations. The overseas business is larger than the domestic one and is growing faster as smokers in areas like China become more inclined to use U.S. brands.

Part of the reasoning for the spin-off was to firewall Philip Morris International and its balance sheet from potential legal claims against the parent. It appeared that most of the class action suits against Big Tobacco were at an end, but the new legal decision shows that the assumption was not entirely true. The suits were based on the accusation that Big Tobacco knew the dangers of smoking but hid them from the public. That, in turn, caused millions of illnesses and deaths.

If the Florida decision is a set-back for Altria, the Philip Morris International business may have already left the building to pursue business overseas without the weight of decision in the U.S. legal system.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Altria's (MO) wisdom in spinning out Philip Morris International originally appeared on BloggingStocks on Tue, 02 Oct 2007 10:05:00 EST. Please see our terms for use of feeds.

Altria (MO) eyeing another spin-off, plus a trade idea originally appeared on BloggingStocks on Mon, 27 Aug 2007 11:36:00 EST. Please see our terms for use of feeds.

"Altria Group (NYSE: MO) is a company in transition, catching its breath after spinning off giant Kraft Foods, restructuring North American production facilities, and preparing to sell Philip Morris International," notes Tom Slee.

The contributing analyst with Internet Wealth Builder has reaffirmed his buy rating, noting "Analysts expect an announcement in the next month or so about the divestiture, as well as plans for a major stock repurchase program."

He adds, "Not that Altria is resting on its laurels, however. The world's largest tobacco company is test marketing a smokeless tobacco in order to combat smoking bans."

The product, he points out, called Marlboro Snus, is a small pouch of dried tobacco that users place in the mouth. Unlike chewing tobacco, however, Snus do not require spitting.

He states, "Because of the health hazards and resulting litigation, tobacco remains a controversial industry. However, if you can put that aside, the fundamentals for leading producers such as Altria remain good.

Slee adds, "While Europeans and North Americans have been abandoning the habit, it's estimated that there are now more than 300 million male smokers in China, equal to about the entire U.S. population. Whether we like smoking or not, the fact is that Altria is extremely well positioned to benefit from what remains a growth industry."

Altria, like most stocks, has taken a beating, he observes. But, he adds, "The stock is now trading at 15.9 times this year's expected earnings of $4.25 and yielding 4.1% on a $2.76 dividend. This provides the stock with downside protection."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Altria (MO): 'A company in transition' originally appeared on BloggingStocks on Tue, 21 Aug 2007 13:40:00 EST. Please see our terms for use of feeds.

While many advisors buy and sell based on the outlook for the next few weeks or months, the legendary advisor Charles Allmon takes a decidedly long-term approach to investing. Indeed, the editor of Growth Stock Outlook is recommending a buy on Altria Group (NYSE: MO) for those looking to buy and hold a stock for the next five years.

Allmon, featured in The Bull & Bear Financial Digest, explains, "Altria, and its Phillip Morris operation, hardly needs introduction as the world's largest tobacco company. Marlboro, their famous and leading brand, continues to grow, particularly in international markets. Revenues in 2007 might approach $70 billion, after the Kraft spin-off."

He continues, "Altria's foreign cigarette business in recent years has grown nicely, well ahead of Phillip Morris USA. This could continue for the foreseeable future, even though foreign brands continue to offer stiff competition." Allmon adds, "Do keep in mind that Altria pays a hefty cash dividend which has been raised substantially each year."

He also speculates, that there is the prospect that Altria will split into two companies, Phillip Morris USA and Phillip Morris International. In that event he says, "I would expect to hold shares of both, which most likely will continue to lay those golden eggs - cash!" His conclusion? "I would buy MO today for a five-year hold."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Altria Group (MO): A 5-year buy-and-hold originally appeared on BloggingStocks on Tue, 07 Aug 2007 11:05:00 EST. Please see our terms for use of feeds.

The Family Smoking Prevention and Tobacco Control Act, to be voted on today by the Senate Health Committee, seems on the fast track to approval. If passed into law it will place the tobacco industry under the oversight of the Food and Drug Administration. The measure, supported by health groups and some of the industry, will give the agency some broad powers in regulating the contents and sales of tobacco products.

Industry heavyweight Altria Group's (NYSE: MO) Phillip Morris favors the bill, but others such as Reynolds American's (NYSE: RAI) R.J. Reynolds oppose it, claiming the regulations would limit its ability to compete with the market leader.

Continue reading Tobacco to fall under FDA control?

Tobacco to fall under FDA control? originally appeared on BloggingStocks on Wed, 25 Jul 2007 14:01:00 EST. Please see our terms for use of feeds.

Shares of Altria Group, Inc. (NYSE: MO) fell today after the cigarette maker disappointed Wall Street, missing analysts' expectations and cutting its earnings guidance for the year to $4.05 to $4.10 per share down from April's $4.20 to $4.25 level.

Earnings per share were $1.05, down from $1.29 last year and under the $1.13 of First Call estimates. Revenues grew almost 10% year-over-year to $18.8 billion, the company said. Bloomberg News notes that the U.S. business is declining at a faster rate than analysts expected.

Simultaneously, the company is acquiring a 30% stake in a Mexican tobacco business from Grupo Carso. CFO Dinyar S. Devitre noted that the international businesses are ready to be split up, although no timing has been given. And who said smoking is a dead-end business? Altria shares are actually up since the company completed its Kraft Foods (NYSE: KFT) spin-off, and shareholders still have the likely spin-off of Phillip Morris International coming down the pipe.

Many investors would have thought the company's future was in the ashtray, but the company has defied the skeptics, even though everyone knows that its products kill. Actually, shares are up considerably over the last 10-years and it has paid significant dividends. Even the states don't want the company to entirely disappear because cigarettes are responsible for generating huge amounts of tax revenue.

Investors may not all be tobacco fans, but they probably all will say "Keep Smoking!, thanks for the money."

Jon Ogg is a partner at 24/7 Wall St.; he does not own securities in the companies he covers.

Altria earnings disappoint as U.S. business weakens originally appeared on BloggingStocks on Wed, 18 Jul 2007 13:13:00 EST. Please see our terms for use of feeds.

Merck & Co., Inc. (NYSE:MRK) made the decision to litigate any claims that consumers have about the side effects of it drug Vioxx. There were studies that indicated that the drug could cause heart attacks in some patients.

Merck is facing 27,000 lawsuits from patients who posit that Vioxx caused them health problems. The company has decided to try the cases instead of attempting to enter into one large settlement covering all claims. Not unlike Altria Group, Inc.'s (NYSE:MO) Philip Morris and its tobacco litigation, Merck knows that the cost of bringing suit against it is substantial, so if the company wins a number of early cases, other plaintiffs may back off.

A jury in New Jersey has now found that Merck did recklessly promote the drug and awarded a patient $47.5 million. Merck will obviously appeal the case.

The brilliance of Merck's move to try cases with the goal of wearing down Vioxx claims may be the company's downfall. A raft of "wins" against the company could drive its liability into the billion of dollars. At that point, the company's future could be at stake.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Merck's Vioxx strategy starts to look more risky originally appeared on BloggingStocks on Tue, 13 Mar 2007 10:33:00 EST. Please see our terms for use of feeds.

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX down .47 to 10.49 after FOMC leaves rates unchanged at 5.25%

Comcast Corp. -(NASDAQ:CMCSK) option prices reveal subtle risks as expected into 2/1 EPS. Comcast will report EPS before the open on 2/1. Comcast February 45 straddle is priced at $2.30, above its theoretical value of $1.96 according to Track Data, suggesting increasing near term price fluctuations risks into EPS.

Google Inc.-(NASDAQ:GOOG )February option implied volatility elevated as expected into EPS. Google will report EPS after the close tonight. American Technology says "expect a solid report after close; Flat stock may reflect lower expectations." Google call option volume of 84,845 contracts compares to put volume of 54,692 contracts. Google February option implied volatility of 45 is above its 26-week average of 34 according to Track Data, suggesting larger price risks.

Option volume leaders today were: Altria Group Inc. (NYSE: MO), SanDisk Corp. (NASDAQ:SNDK), Citigroup (NYSE:C), Bristol Myers Squibb (NYSE:BMY) and Microsoft Corp.(NASDAQ:MSFT).

Daily option update - January 31, 2007 originally appeared on BloggingStocks on Wed, 31 Jan 2007 16:05:00 EST. Please see our terms for use of feeds.

Tom Slee of Internet Wealth Builder thinks blue chip Altria Group Inc. (NYSE: MO) has "a lot of upside potential' and has chosen the stock as his latest special situation buy.

He notes that while MO is a consumer products goliath with global sales of about $100 billion per annum, at the end of the day, it is a tobacco company, with 71% of its operating profit results from the U.S. and International tobacco divisions."

He admits that many investors might wish to avoid the stock based on moral grounds, but he adds, "Despite its role in cigarettes, one thing is certain: Altria is an extremely well-managed company."

(I'd add that it is now one month since I quit smoking, so this write-up should not in any way be viewed as an endorsement of the firm's tobacco business.)

Slee continues, "Despite declining cigarette use in North America, the firm's earnings have still grown at almost 8% a year for the last decade. Further, the company distributes almost 60% of its profits as dividends."

The big news according to the advisor is management's belief that it can increase shareholder value by breaking-up its holdings. He notes that the break-up was scheduled to take place a few months ago but put on hold because of the $200 billion Schwab lawsuit overhanging the tobacco industry.

However, Slee believes that the recent elections were positive for cigarette manufacturers and sees a window of opportunity in which the company might move ahead with a restructuring. He notes, "There is an excellent chance that Altria will announce plans to spin off Kraft on Jan. 31 to shareholders."

His bottom line for more aggressive investors willing to consider a special situation is to buy Altria at $84 with a target of $98, anticipating that a distribution of Kraft might provide a bonus.

Steven Halpern is the editor of TheStockAdvisors.com, a free daily overview of the latest stock recommendations from the financial newsletter community.

Big MO break-up: A window of opportunity at Altria originally appeared on BloggingStocks on Mon, 04 Dec 2006 12:25:00 EST. Please see our terms for use of feeds.

A federal appeals court is reviewing the decision to let a group of smokers file a class action suit that claims "light" cigarettes were marketed as being safer than regular smokes.

While it is hard to determine what damages the suits could bring to tobacco companies if they are successful, the plaintiffs claim that big tobacco brought in between $120 billion and $200 billion in "light" sales. Why their lawyers cannot get to a number in a slightly tighter range is hard to understand.

On Friday, when the news hit the wire, shares in Altria Group (NYSE:MO), parent of the largest tobacco company Philip Morris, rose almost $1.50 to just under $85. As the litigation has favored Altria and its counterparts, the company's stock has gone from $28 in May 2003 to the current level.

However, the "light" cigarette wrinkle is fairly new. Older suits were based on the simple premise that tobacco companies hid the risks of smoking and marketed products that they knew were dangerous. The treachery alleged in the "light" case is a bit more subtle. And, perhaps more complex.

Altria is at a high, but the fat lady has not sung. There is still a fair amount of risk.

Douglas McIntyre is a partner at 24/7 Wall St.

Altria shares at a high -- did the party come too early? originally appeared on BloggingStocks on Mon, 20 Nov 2006 09:45:00 EST. Please see our terms for use of feeds.