downgrade posts
FeedPosted Dec 7th 2010 12:30PM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Technical Analysis
Consumer-goods behemoth Unilever (UN) was among the stocks making headway Tuesday morning. The British firm received an upgrade to overweight from underweight by brokerage firm Morgan Stanley, which stated, "We double upgrade Unilever to overweight, as we see the risk/reward profile for the shares as more attractive now than at any point in the past three years."
I am not going to agree or disagree with the decision for the upgrade right now; I want to take a look at the equity's chances to further this rally (at more than 3% as of this writing). There is evidence for both the continuation and the stall of the rally
Continue reading Unilever Receives a Double Upgrade
Posted Nov 17th 2010 11:30AM by Elizabeth Harrow (RSS feed)
Filed under: Major Movement, Earnings Reports, Analyst Upgrades and Downgrades, Options, Technical Analysis, Suntech Power Hldgs ADS (STP)
Suntech Power (STP) is taking a post-earnings plunge, as traders pan the company's third-quarter report.
Wednesday morning, Suntech said its third-quarter profit climbed 11% to $33.1 million, or 18 cents per American depositary share (ADS), while revenue rose 57% to $743.7 million. Gross margin for the quarter contracted to 16.4% from 17.8%, due to lower selling prices.
Continue reading Suntech Power Tumbles to New Annual Low Following Earnings
Posted Jun 17th 2010 10:00AM by Melly Alazraki (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, BP p.l.c. ADS (BP)

After calls from a U.S. congressman for BP (
BP) executives to
commit hara-kiri and following President Obama's successful pressure on the company to set up a $20 billion escrow account,
cancel $7.8 billion in dividend and sell $10 billion assets, a few analysts decided it couldn't get any worse and upgraded the oil giant shares to buy.
It's been nearly two months since BP's Deepwater Horizon rig exploded in the Gulf of Mexico, causing a massive oil spill -- that's still hasn't been resolved -- and the worst environmental disaster in U.S. history. Shares of the company were nearly halved as the cleanup cost estimates have swelled.
And as the agreements with Obama lifted some of the uncertainty, triggering a relief rally, some analysts also opted to upgrade BP shares.
Continue reading Analysts Upgrade BP to Buy?
Posted Jun 9th 2010 1:00PM by Elizabeth Harrow (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Options, Technical Analysis
Right out of the gate Wednesday, put volume surged to about 50 times the norm on Autodesk (ADSK). Within the first 45 minutes of trading, about 20,000 puts changed hands on the design software company. Most of the activity is taking place in the July series, where it looks as though traders are buying new puts at the 25 and 31 strikes. The stock is currently trading near $26.60, in between these two popular put options.
However, today's preference for bearishly oriented options isn't exactly a deviation from the norm for Autodesk. Among options slated to expire within three months, puts currently outnumber calls by a margin of 2.74 to one.
Continue reading Put Volume Spikes on Autodesk
Posted Apr 27th 2010 9:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Amer Intl Group (AIG)

Keefe Bruyette on Tuesday
downgraded American International Group (
AIG) to underperform from market perform and set a price target of $6 per share. The target price is far lower than the stock's current perch in the upper $42 region. The brokerage cut AIG because it "sees little long-term value under AIG's current ownership and capital structure," as theflyonthewall reports. Following the downgrade, shares traded more than 4% lower in pre-market action.
Technically, the assigned target price of $6 is a gutsy move. The stock is perched atop support from its 10- and 20-week moving averages. In addition, the 10-week trendline recently completed a bullish cross of its 20-week counterpart. This technical formation often precedes a continued run higher.
Continue reading AIG Downgraded by Keefe Bruyette
Posted Apr 9th 2010 5:20PM by Gary Sattler (RSS feed)
Filed under: eBay (EBAY), Stocks to Buy

Pointing at decreased listing volume, slower than expected growth, and issues of currency exchange rates, Kaufman Bros. analysts have downgraded shares of eBay Inc. (
EBAY). Kaufman analyst Aaron Kessler indicates that his company remains positive on eBay, even though it has downgraded the stock from buy to hold.
It would seem that the issue of currency exchange might be the greatest concern here, as many of us wait to see how valuation of the yuan shall unfold. If the yuan appreciates significantly, which it probably won't, it could mildly affect eBay's listing mix, but probably not to any noticeable degree.
Continue reading eBay Stock Dips, Still a Good Deal?
Posted Apr 9th 2010 9:30AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Alcoa Inc (AA)

Earnings season will kick off after the bell on Monday when the first of the Dow Jones companies Alcoa (
AA) reports its quarterly results. The Street expects the metal magnate to report earnings of 11 cents per share. But this morning, ahead of the earnings report J.P. Morgan felt it prudent to
downgrade Alcoa to neutral from overweight. The broker also removed the company from its focus list and lowered its price target on the stock from $21.50 to $16.50.
JPMorgan wrote in a note it believes that AA "will still struggle to generate attractive returns at our strategist's 2011 aluminum price forecast of 92 cents/pound." J.P. Morgan did state that the business "has taken significant costs out of its business by closing high cost operations and through additional procurement and productivity savings."
Continue reading Alcoa Downgraded Ahead of Monday's Earnings
Posted Jan 6th 2010 1:40PM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Chubb Corp (CB)
Homeowner insurance provider Chubb (CB) is having a rough day, as the company was downgraded to market perform from outperform at FBR Capital. The downgrade was accompanied by a price-target lowering from $60 to $65. This news forced the stock more than a percentage point lower in pre-open trade, and CB was more than 2% lower in early trading.
I find it rather difficult to believe that CB is going to get anywhere near $60 anytime soon. The shares are currently trending sideways between the support of its 10- and 20-monthly moving averages and the $53 to $55 region. I'm not sure why the company's target price would be set in all-time high range, but I am not one of the expert analysts.
Continue reading FBR Downgrades Chubb, Sending Shares Lower
Posted Nov 11th 2009 10:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Tyson Foods'A' (TSN)

Bright and early on this fine Wednesday morning, JPMorgan
downgraded Tyson Foods (
TSN) to Neutral from Overweight. The brokerage gave
four reasons for the downgrade: valuation, recent rises in corn and hog prices, a looming supply increase from competitor Sanderson Farms (
SAFM), and uncertainty from Pilgrim's Pride.
All of these reasons are perfectly valid for the downgrade, but I want to focus on the valuation aspect of the downgrade. Technically, TSN faces overhead resistance in the $14 region, which is significant as the shares are currently ascending through the upper $12 region. The $14 level spurned the shares earlier this year, sending them into a steady decline back to support at the $11 region.
Continue reading Tyson Foods downgraded by JPMorgan
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