Analyst Upgrades

• Home Depot (HD) to buy from neutral at Goldman.
• Delta Air Lines (DAL) to buy from neutral at BofA/Merrill.
• Heico (HEI) to outperform from sector perform at RBC Capital.
• Royal Dutch Shell (RDS.A) to outperform from neutral at Credit Suisse.
• MB Financial (MBFI) to outperform from neutral at RW Baird.
• Quest Diagnostics (DGX) to equal weight from underweight at Morgan Stanley.
• Oshkosh (OSK) to neutral from underweight at JPMorgan.
• Volterra (VLTR) and Silicon Laboratories (SLAB) to buy from neutral at Roth Capital.
• Ascena Retail Group (ASNA) to overweight from neutral at Piper Jaffray.
• Cytec Industries (CYT) to buy from hold at Deutsche Bank.

Continue reading Analyst Calls: DAL, CIEN, DGX, HD, IMAX, LOW, OSK, PENN, RDS.A, SWK ...

Analyst Calls: DAL, CIEN, DGX, HD, IMAX, LOW, OSK, PENN, RDS.A, SWK ... originally appeared on BloggingStocks on Mon, 31 Jan 2011 12:10:00 EST. Please see our terms for use of feeds.

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.

Could a stock that you made 1,100% on still have room to run? Yes, it is possible. In particular if it had a near death experience as a penny stock for a while.

That is the case with Newcastle Investments (NCT), the CMBS lender and real estate investment company that reached a recent high of $7.10 and has settled back down, most recently hovering between $6.70 to $7.00. It closed Thursday December 23 at $6.71.

Continue reading Chasing Value: 2011 Stock Picks -- Part 2

Chasing Value: 2011 Stock Picks -- Part 2 originally appeared on BloggingStocks on Mon, 27 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

The list of stocks under consideration has been reduced from eleven to ten, to seven and now in today's story four. Starting with five major defense contractors and six major oil companies (see Chasing Value: You Must Own Defense and Oil for Safety), I began a search to find one stock in each sector that might be suitable for inclusion in my list of 2011 stock picks posted last week Chasing Value: 2011 Stock Picks -- The Journey Begin.

Today we continue our analysis by examining return on equity (ROE), return on invested capital (ROIC), and price-to-earnings-to-growth (PEG). Each stock is ranked by sector and metric from best to worst. Sometimes there are clear winners and others there is little to separate one stock from the next. However, in total, a picture can be drawn that does portray a superior opportunity.

Continue reading Chasing Value: Defense and Oil -- Part 3

Chasing Value: Defense and Oil -- Part 3 originally appeared on BloggingStocks on Thu, 16 Dec 2010 12:20:00 EST. Please see our terms for use of feeds.

This series started with five major defense contractors and six major oil companies that are worthy considerations to help your portfolio survive a global crisis (see Chasing Value: You Must Own Defense and Oil for Safety). After the first review, one stock was eliminated from consideration: Petroleo Brasileiro (PBR). The reason is in the first story.

Today we continue our analysis by examining price-to-book (P/B), price-to-cash-flow (P/CF), and dividend yield. Each stock is ranked by sector and metric from best to worst. In the end we hope to narrow down our choices for candidates that might be added to Chasing Value: 2011 Stock Picks -- The Journey Begins.

Continue reading Chasing Value: Defense and Oil -- Part 2

Chasing Value: Defense and Oil -- Part 2 originally appeared on BloggingStocks on Wed, 15 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: You Must Own Defense and Oil for Safety

Chasing Value: You Must Own Defense and Oil for Safety originally appeared on BloggingStocks on Tue, 14 Dec 2010 16:00:00 EST. Please see our terms for use of feeds.

It's that time of year when I start thinking about my 2011 stock picks, and enough folks have been nudging me that I might as well get on with it. The list will not be finalized until the end of the month. During the interim time I will take readers through a number of possibilities, explaining the rational for my suggestions along the way and adding and subtracting until I get the list down to ten.

Today I will start by reviewing opportunities discussed in another post and determine which of these stocks might provide the best value. The list was originally cast as a globally diversified, large cap, dividend paying and relatively stable group of companies that would likely weather any storm. See: Chasing Value: Bonds, Gold, Stocks and Capital Flight

Continue reading Chasing Value: 2011 Stock Picks -- The Journey Begins

Chasing Value: 2011 Stock Picks -- The Journey Begins originally appeared on BloggingStocks on Thu, 02 Dec 2010 15:20:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Bonds, Gold, Stocks and Capital Flight

Chasing Value: Bonds, Gold, Stocks and Capital Flight originally appeared on BloggingStocks on Mon, 15 Nov 2010 16:30:00 EST. Please see our terms for use of feeds.

Early Tuesday morning, oil giant BP (BP) is scheduled to release its third-quarter 2010 financial results, the same quarter in which the disastrous Gulf oil spill was finally capped. So what are the analysts surveyed by Thomson Reuters expecting?

During the three months that ended in September, London-based BP also announced post-Gulf spill changes and plans to reinstate its dividend. Its earnings for that period are forecast to come to $1.51 per share, which is about the same as in the year-ago period. But revenue is expected to be 6.8% higher year over year to $72.5 billion.

Continue reading BP Earnings Preview

BP Earnings Preview originally appeared on BloggingStocks on Mon, 01 Nov 2010 14:30:00 EST. Please see our terms for use of feeds.

The earnings crunch continues this week, and analysts surveyed by Thomson Reuters are anticipating lots of strong quarterly reports.

For example, year-over-year earnings growth from big oil Chevron (CVX), ConocoPhillips (COP), ExxonMobil (XOM) and Royal Dutch Shell (RDS.A) are expected to be in double digits. The same is true of many other energy and mining concerns reporting this week: Allegheny Technologies (ATI), Alliant Energy (LNT), Arch Coal (ACI), Cliffs Natural Resources (CLF), CMS Energy (CMS), CONSOL Energy (CNX), DPL (DPL), Hess Corp. (HES), Minerals Technologies (MTX), Pioneer Natural Resources (PXD), PPL Corp. (PPL), Southwestern Energy (SWN), Total (TOT), Whiting Petroleum (WLL), Williams Companies (WMB) and Wisconsin Energy (WEC).

Continue reading Week in Preview: The Earnings Crunch Rolls On (MSFT, COP, V)

Week in Preview: The Earnings Crunch Rolls On (MSFT, COP, V) originally appeared on BloggingStocks on Sun, 24 Oct 2010 12:30:00 EST. Please see our terms for use of feeds.

A few weeks ago, a good friend asked me for a stock recommendation that he might add to his Roth IRA. Three stocks with high yields came to mind that would be great in a retirement account. Note that I do not advise others what they should do, but share what I am doing or contemplating doing.

I recently included Merck (MRK) in a review of the granny portfolio, and discussed Royal Dutch Shell (RDS.A) in Chasing Value[TM]: Buffett Must Be Buying Oil. I own Merck in all of my portfolios and have made Shell the largest holding in the largest portfolio. The third stock that I thought of I don't yet own -- Telefonica SA (TEF). I looked at it last May, and it currently pays a whopping 7.13% yield.

Continue reading Chasing Value: Telefonica, a Work of Art

Chasing Value: Telefonica, a Work of Art originally appeared on BloggingStocks on Mon, 23 Aug 2010 09:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Auriga upgraded Leap Wireless (LEAP) to buy from hold following the company's Q2 results and analyst day, citing valuation, longer-term potential for consolidation and prospects for business improvements. Despite upgrading, the firm lowered its target for shares to $16 from $19.
• Goldman upgraded Barnes & Noble (BKS) to neutral from sell following the company's announcement to explore strategic alternatives. The firm raised its price target to $15 from $12.
• RBC Capital upgraded ESCO Technologies (ESE) to sector perform from underperform following the better-than-expected Q3 report. The firm raised its price target to $30 from $28.
• MetLife (MET) was upgraded to buy from neutral at BofA/Merrill.
• Priceline.com (PCLN) was upgraded to buy from hold at Stifel Nicolaus.
• HSBC (HBC) was upgraded to outperform from underperform at CLSA.

Continue reading Analyst Calls: AMD, BKC, BKS, BP, DOW, HBC, LEAP, LLY, MET, PCLN, ...

Analyst Calls: AMD, BKC, BKS, BP, DOW, HBC, LEAP, LLY, MET, PCLN, ... originally appeared on BloggingStocks on Wed, 04 Aug 2010 11:30:00 EST. Please see our terms for use of feeds.

Until recently, my largest positions were in financial stocks Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC). As a contrarian investor, I do buy on fear and sell on greed as "my pal Warren" has advised for many years. This has worked out to be very profitable over the past 18 months. However, in the past 30 days the financial stocks have dropped to second place in favor of oil and gas stocks.

I think the economic recovery is moving at a snail's pace, lowering anticipated demand for oil while gas was already depressed based on the same factors and the addition of numerous new large supplies. Add to this the mess in the Gulf of Mexico and the public's already negative sentiment about oil companies and you have the makings of depressed pricing in the sector.

Continue reading Chasing Value: Buffett Must Be Buying Oil

Chasing Value: Buffett Must Be Buying Oil originally appeared on BloggingStocks on Mon, 02 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

The costs to BP (BP) associated with cleanup, containment, relief well drilling and damage claims arising from the Gulf oil spill has exceeded $3 billion, the London-based energy giant reported Monday.

This includes $147 million in payments to individuals, businesses and governments affected by the spill, which began April 20, but not the $20 billion escrow account that BP agreed on June 16 to set up at President Obama's insistence.

Continue reading As Oil Spill Costs Top $3 Billion, BP Seeks Help

As Oil Spill Costs Top $3 Billion, BP Seeks Help originally appeared on BloggingStocks on Mon, 05 Jul 2010 11:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Janney Montgomery upgraded MasterCard (MA) to buy from neutral. The firm has a $250 price target on the stock.
• Lazard upgraded Frontline (FRO) to hold from sell following the better than expected Q1 report.
• Knight Capital (NITE) was upgraded at BMO Capital to outperform from market perform. The firm cites valuation and improved fundamentals for the downgrade. The firm has an $18 price target on the stock.
• Royal Dutch Shell (RDS.A) was upgraded to overweight from equal weight at Barclays.
• Carnival (CCL) was upgraded to neutral from sell at Goldman.
• Computer Sciences (CSC) was upgraded to buy from hold at Stifel Nicolaus.

Continue reading Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ...

Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ... originally appeared on BloggingStocks on Fri, 21 May 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading BP Thrives as Oil Sector Gets Shaky

BP Thrives as Oil Sector Gets Shaky originally appeared on BloggingStocks on Thu, 06 May 2010 11:00:00 EST. Please see our terms for use of feeds.

By and large, earnings expectations remain high as earnings season rolls on this week. Analysts surveyed by Thomson Reuters expect double-digit annual earnings growth from Avon (AVP), Kellogg (K) and Whirlpool (WHR) to Chicago Mercantile Exchange (CME), DuPont (DD) and Northrop Grumman (NOC).

Big Oil steps into the earnings spotlight this week as well. Wall Street is anticipating big profit growth from BP (BP), Chevron (CVX), ConocoPhillips (COP), which we look at more closely below, Exxon Mobil (XOM) and Royal Dutch Shell (RDS.A), as well as from Apache (APA) and Occidental (OXY). Even Hess (HES) is forecast to have swung to a profit from last year's net loss.

Continue reading The Week in Preview: Eye on Conoco, Texas Instruments, MetLife, Ford and More

The Week in Preview: Eye on Conoco, Texas Instruments, MetLife, Ford and More originally appeared on BloggingStocks on Sun, 25 Apr 2010 12:30:00 EST. Please see our terms for use of feeds.

Royal Dutch Shell (RDS.A) closed at $59.62. Crude futures are recently down 0.78% to $85.21 according to Bloomberg. RDS.A over all option implied volatility of 20 is below its 26-week average of 23, according to Track Data, suggesting decreasing price fluctuations.

DJ US Real Estate Index Fund (IYR) closed at $50.96. IYR overall option implied volatility of 23 is below its 26-week average of 31, according to Track Data suggesting decreasing price movement.

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

Options Update: Royal Dutch Shell Volatility at 32-Month Lows on $85 Oil originally appeared on BloggingStocks on Thu, 08 Apr 2010 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Under the Radar: Shell's Output Expected to Be Mostly Natural Gas in 2012

Under the Radar: Shell's Output Expected to Be Mostly Natural Gas in 2012 originally appeared on BloggingStocks on Tue, 23 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.

If you do business with Iran, it's probably going to be harder to get insurance coverage. Regulators and lawmakers in the U.S. are looking for stiffer penalties to thrust upon companies that do business with Iran. And insurers, likely acutely aware of how risk can spread, are starting to pull back.

Munich Re (0KFE) and Allianz (AZSEY) announced that they are suspending business in Iran, according to a report by Business Insurance. Neither company, however, stands to lose much. For Allianz, the lost premium is "negligible," and for Munich Re, it's only around $13.6 million.

Continue reading Insurance Industry Faces More Pressure on Iran

Insurance Industry Faces More Pressure on Iran originally appeared on BloggingStocks on Mon, 01 Mar 2010 10:50:00 EST. Please see our terms for use of feeds.