Continue reading Rio Tinto Scores an Upgrade from Citigroup

Rio Tinto Scores an Upgrade from Citigroup originally appeared on BloggingStocks on Tue, 02 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading More trouble for Rio Tinto in China

More trouble for Rio Tinto in China originally appeared on BloggingStocks on Mon, 10 Aug 2009 10:20:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Anglo American - Xstrata merger?

Serious Money: Anglo American - Xstrata merger? originally appeared on BloggingStocks on Mon, 22 Jun 2009 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Rio Tinto - BHP Billiton joint venture could run afoul of Chinese law

Rio Tinto - BHP Billiton joint venture could run afoul of Chinese law originally appeared on BloggingStocks on Mon, 15 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Nucor (NUE) rises on ore price cut

Nucor (NUE) rises on ore price cut originally appeared on BloggingStocks on Tue, 26 May 2009 12:30:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Jefferies upgraded Aruba Networks (NASDAQ: ARUN) to Buy from Hold following the company's Q3 results to reflect improved visibility. The firm raised its target price to $6.50 from $3.
• Citigroup upgraded Mosaic (NYSE: MOS) and Potash (NYSE: POT) to Buy from Hold and Agrium (NYSE: AGU) to Hold from Sell as it believes stronger grain fundamentals more than offset China contract risk. The firm raised its target on Mosaic to $72 from $48, on Potash to $145 from $83 and on Agrium to $55 from $36.
• Fulton Financial (NASDAQ: FULT) Was upgraded to Market Perform from Underperform at Keefe Bruyette.
• Rio Tinto (NYSE: RTP) was raised to Neutral from Sell at Goldman.
• Noble Corp. (NYSE: NE) was upgraded at Deutsche Bank to Buy from Hold.

Continue reading Analyst upgrades, downgrades and initiations: ARUN, MOS, POT, AGU, EGLE, DO, MON, SWCEY, TDC and ABC

Analyst upgrades, downgrades and initiations: ARUN, MOS, POT, AGU, EGLE, DO, MON, SWCEY, TDC and ABC originally appeared on BloggingStocks on Fri, 22 May 2009 10:00:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Canaccord upgraded Rio Tinto (NYSE: RTP) to Buy from Hold citing valuation following the severe price decline following BHP Billiton's (NYSE: BHP) dropped bid.
• UBS upgraded Itron (NASDAQ: ITRI) to Buy from Neutral citing valuation and defensive business mix.
• Jefferies upgraded shares of HealthSouth (NYSE: HLS) to Buy from Hold on valuation and maintains a $13.50 target.
• Melco PBL Entertainment (NASDAQ: MPEL) was raised to buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded at Merrill Lynch to Buy from Neutral.
• HSBC Holdings (NYSE: HBC) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

Continue reading Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . .

Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . . originally appeared on BloggingStocks on Wed, 26 Nov 2008 11:45:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Jefferies upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Buy from Hold on valuation with the stock down 65% in two months as they believe the company has a "best-in-class fundamental story." The firm lowered its target to $25 from $30.
• Morgan Stanley upgraded Sanofi-Aventis (NYSE: SNY) to Overweight from Equal Weight on valuation and believes near-term cost reductions could provide a positive catalyst.
• Citigroup upgraded New York Times (NYSE: NYT) to Hold from Sell and lowered its target to $5.50 from $7 on valuation and believes the dividend cut will boost the company's liquidity.
• Pantry (NASDAQL PTRY) was upgraded to Outperform from Market Perform at Friedman Billings.
• LECG Corp (NASDAQ: XPRT) was raised to Buy from Neutral at UBS.
• Thomson Reuters (NYSE: TRI) was upgraded at RBC Capital to Outperform from Sector Perform.

• Jefferies downgraded Suntech (NYSE: STP) to Hold from Buy and lowered its target to $6 from $25 as they believe concerns about a convert refinancing in February 2010 will continue to weigh on the stock.
• Credit Suisse cut Ericsson (NASDAQ: ERIC) to Underperform from Outperform due to expectations for a decline in wireless infrastructure spending.
• ING downgraded shares of Rio Tinto (NYSE: RTP) to Hold from Buy as they believe it will be challenging for the company to execute asset sales planned at reducing debt in the current environment.

Continue reading Analyst calls: BWLD, SNY, NYT, STP, ERIC, RTP, KTOS, ZGEN

Analyst calls: BWLD, SNY, NYT, STP, ERIC, RTP, KTOS, ZGEN originally appeared on BloggingStocks on Mon, 24 Nov 2008 10:57:00 EST. Please see our terms for use of feeds.

Continue reading Global Q & A: Conserve your resources

Global Q & A: Conserve your resources originally appeared on BloggingStocks on Wed, 13 Aug 2008 17:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the discussions, the Wall Street Journal reported that Microsoft Corporation (NASDAQ: MSFT) has held discussions with Time Warner Inc (NYSE: TWX) and News Corporation (NYSE: NWS), among others, about joining it in a deal that could lead to the breakup of Yahoo! Inc (NASDAQ: YHOO). Some of the sources said the preliminary talks are unlikely to result in a deal with Yahoo!
• Johnson & Johnson (NYSE: JNJ) is reportedly in exclusive talks to sell its wound-care business Ethicon to the private-equity arm of JP Morgan Chase & Co (NYSE: JPM), according to the Wall Street Journal. Terms of the potential deal were not disclosed.

• Sources familiar with the inquiry said that the Justice Department has opened a formal antitrust investigation into a deal that would allow Google Inc (NASDAQ: GOOG) to provide some search advertising for Yahoo!. The Washington Post reported that investigators will demand documents from Google and Yahoo!, as well as other large companies in the media and Internet industries.

• Reuters reported that regulators in the European Union are looking at the long-term effects of BHP Billiton Limited's (NYSE: BHP) $170B bid for Rio Tinto Group (NYSE: RTP). Sources familiar with the EU questionnaire said regulators have asked competitors and customers about effects of the deal on their businesses through 2015.

Newspaper wrap-up: EU investigating the long-term implications of Rio Tinto deal originally appeared on BloggingStocks on Wed, 02 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that, in an attempt to move past its takeover battle with Microsoft Corporation (NASDAQ: MSFT), Yahoo! Inc (NASDAQ: YHOO) is planning a reorganization. People familiar with the matter said executives are discussing a plan to centralize numerous product groups into a global-product organization. Details may be announced next week.
• The Wall Street Journal also reported that an internal feud at Live Nation Inc (NYSE: LYV) over strategy may soon be resolved, as the concert promoter is reportedly negotiating the exit of chairman Michael Cohl.

• A recommendation by an Australian commission to open Rio Tinto Group's (NYSE: RTP) Pilbara railway to third parties could cost $30B if the idea is implemented, Rio contended and the Australian reported. The National Competition Commission, which advises Australian governments on infrastructure issues, has suggested that Fortescue Metals Group be given access to certain rail lines operated by Rio Tinto.

• A joint investigation by CBC News and the Canadian Press found one-third of people shot by Taser International Inc's (NASDAQ: TASR) Tasers reportedly required some medical attention, Engadget reported.
• TechCrunch confirmed that Joshua Schachter, the founder of delicious, will resign from Yahoo!. Sources believe the near-stalled development of the new version of delicious may have played a part in his resignation.

Newspaper wrap-up: Yahoo! reportedly plans reorganization originally appeared on BloggingStocks on Fri, 20 Jun 2008 08:05:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that Ford Motor Company (NYSE: F) CEO Alan Mulally isn't done cost-cutting. According to people close to the situation, Mulally is considering more job cuts, selling its Volvo brand and closing the troubled Mercury brand.
• BHP Billiton Limited (NYSE: BHP) CEO Marius Kloppers strongly criticized Rio Tinto Plc (NYSE: RTP) and its CEO yesterday, the Financial Times reported. BHP Billiton has outperformed Rio Tinto in several areas, including share price appreciation and EPS growth, said Kloppers, adding, "On every metric I can envisage they [Rio] have been beaten."

• According to the Economic Times, AT&T Inc (NYSE: T) is reportedly in preliminary talks with Malaysia's Maxis Communications about buying its 74% stake in Indian cellular phone company Aircel, sources said.
• The United Auto Workers union has rejected several "generous" benefit and wage proposals, according to American Axle & Manufacturing Holdings Inc (NYSE: AXL). In a statement yesterday, the Detroit News reported that American Axle said while tentative agreements had been reached on several issues, the UAW "repeatedly rejected" other proposals that were "considerably higher than the market rate."

Newspaper wrap-up: BHP CEO lashes out at Rio Tinto originally appeared on BloggingStocks on Wed, 23 Apr 2008 08:37:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Friedman Billings initiated Jefferies Group (NYSE: JEF) with a Market Perform citing the difficult underwriting environment and challenging credit market.
  
• JMP Securities initiated Quality Systems (NASDAQ: QSII) with an Outperform rating and $35 target. The firm expects the company's practice management and electronic medical record solutions to benefit from growth opportunities within the ambulatory market.
  
• Techwell (NASDAQ: TWLL) was assumed with an Overweight rating and $14 target at Thomas Weisel, as they expect TWLL to have continued stable revenue growth given its market leadership and increased global security demand.

OTHER INITIATIONS:

• Bernstein initiated NetSuite (NYSE: N) with a Market Perform rating and $23 target.
  
• Keefe Bruyette started Comerica (NYSE: CMA) with a Market Perform rating and $37 target.
  
• BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) were assumed at ING with Buy ratings.

Analyst initiations: Jefferies Group, Quality Systems, Techwell originally appeared on BloggingStocks on Wed, 09 Apr 2008 11:54:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Bernstein upgraded shares of BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) to Outperform from Market Perform as they believe urbanization in China will increase demand for metals.
  
• Prudential Financial (NYSE: PRU) was raised to Overweight from Underweight at Lehman as they believe the company's exposure to commercial mortgage-backed securities is limited.

• SL Green Realty (NYSE: SLG) and Brookfield Properties (NYSE: BPO) were upgraded at Credit Suisse to Neutral from Underperform.
  
• Yamana Gold (NYSE: AUY) was raised at UBS to Buy from Neutral.

Analyst upgrades: BHP, RTP and PRU originally appeared on BloggingStocks on Fri, 04 Apr 2008 10:50:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• To help stabilize the housing market, the Wall Street Journal reported that the Bush Administration is planning to help create fresh funding for mortgages. The plan, which still requires final approval, is said to ease an excess-capital requirement for government sponsored organizations Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, and the Federal Housing Administration.
• The Wall Street Journal also reported that a merger between Northwest Airlines Corporation (NYSE: NWA) and Delta Air Lines Inc (NYSE: DAL) may be derailed after Delta pilots notified executives they remain unable to reach an agreement with Northwest pilots on how to integrate pilot ranks should the two combine.
• The Financial Times reported that BAE Systems Plc (OTC: BAESY) won a $715M order to supply nearly 1,500 mine-resistant vehicles from the U.S. government.

• The Chinese government has locked out Australian mining giants BHP Billiton Limited (NYSE: BHP) and Rio Tinto Plc (NYSE: RTP) from selling iron ore into its daily spot market, the Sydney Morning Herald reported. Mining sources said that the decision may have already cost Australia up to $300M in export profits.

Newspaper wrap-up: Bush plans more funds for mortgages originally appeared on BloggingStocks on Tue, 18 Mar 2008 09:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to sources, the Wall Street Journal reported that Countrywide Financial Corporation (NYSE: CFC) is under investigation for possible securities fraud. People close to the situation say the inquiry is in its early stages but it involves an inquiry into alleged misrepresentations of the company's financial position and the quality of its mortgage loans.
• The Financial Times reported that Credit Suisse Group (NYSE: CS) has teamed up with three leading academics to create products that will deal with the potentially lucrative hedge fund replication industry. The upcoming suite of products will attempt to mechanically replicate the returns of the major hedge fund strategies.

• Rio Tinto Plc (NYSE: RTP) is expected to announce this week that its aluminum business is worth up to $20B more than current estimates, after a rise in aluminum prices; the UK Times reported that the statement could raise pressure on BHP Billiton Limited (NYSE: BHP) to increase its takeover bid for Rio.
• Asset manager Ameriprise Financial Inc (NYSE: AMP) is pairing up with MasterCard Incorporated (NYSE: MA), the Associated Press reported, to become a credit card lender for the first time, the two companies reportedly plan to announce today.

Newspaper wrap-up: Countrywide Financial investigated by the FBI originally appeared on BloggingStocks on Mon, 10 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

BHP Billiton (NYSE: BHP) closed of $73.64 Thursday.

BHP announced on Feb. 6 the offer of 3.4 BHP shares per Rio Tinto (NYSE: RTP) to create the world's largest mining company.

BHP overall option implied volatility of 45 is near its 26-week average according to Track Data, suggesting non-directional risk.

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

Option update: BHP Billiton volatility flat as it attempts to convince RTP of buyout originally appeared on BloggingStocks on Fri, 07 Mar 2008 10:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Mining companies BHP Billiton Limited (NYSE: BHP) and Rio Tinto Plc (NYSE: RTP) are not only competing over iron-ore customers, but they are not competing for investors as well, according to the Wall Street Journal's "Heard on the Street." BHP says 60% of their investors also own Rio shares; Rio puts the figure at 50%.
• Prices for the top 50 branded drugs increased an average of 6.73% in 2006 and 7.82% last year at wholesale, according to market research firm Delta Marketing Dynamics. Often targeted by politicians, pharmaceutical companies are undeterred, the Wall Street Journal reported.

• According to iSuppli sources, Apple Inc (NASDAQ: AAPL) has cut its 2008 NAND order forecast and informed suppliers that its demand growth will slow in 2008 vs. 2007.
• The Boeing Company (NYSE: BA) is considering suspending work on the short-range version of its 787 jet, the -3 shorthaul, in an attempt to get production of the long-range version, the long-range -8, back on track, Flight Blogger said.

Newspaper wrap-up: Boeing may suspend production on short-range 787 originally appeared on BloggingStocks on Thu, 21 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

Alcoa (AA) higher on extended bid for Rio Tinto (RTP) originally appeared on BloggingStocks on Thu, 14 Feb 2008 11:15:00 EST. Please see our terms for use of feeds.

In one of my recent posts on stock pricing, I received a comment from one of our more acerbic readers, who asks some good questions once he simmers down. He wonders why investors have not bid up the share price of Alcoa Inc. (NYSE: AA):

• "How come nobody has the hots for ALCOA? It is very cheap. . . There is mining stock merger-mania yet nobody is buying ALCOA in anticipation of it occurring to ALCOA as well. Are we gonna wait until it is too late?"
  

First of all, I should remind everyone that the price of a stock on any given day is a myth. It is worse than a myth, it is just a fleeting moment in time. I would call it semi-arbitrary most of the time.

Alcoa closed yesterday at $34.06, having a trailing P/E ratio of 11.5. That falls between its 52 week low of $26.69 and its high of $48.77. Also worthy of note, Alcoa has a yield of 2% which is about 10% higher than your average S&P stock. This seems positive.

Perhaps my friend is on to something. Alcoa is off its high considerably and has a lower P/E and higher yield then any of the indices. But its ROE of 15 and ROIC of 11 are all too average, not exceptional -- and these are important considerations. The P/B of 1.89 also seems average but the P/S of 1.03 looks very appealing.

Continue reading Someone asked about Alcoa Aluminum

Someone asked about Alcoa Aluminum originally appeared on BloggingStocks on Tue, 12 Feb 2008 14:30:00 EST. Please see our terms for use of feeds.