Analyst Upgrades

• Cree (CREE) and Rubicon Technology (RBCN) to buy from neutral at Merriman.
• Children's Place (PLCE) to outperform from market perform at BMO Capital.
• Lockheed Martin (LMT) to neutral from underperform at BofA/Merrill.
• Copano Energy (CPNO) to outperform from market perform at Morgan Keegan.
• Motorola Mobility (MMI) to neutral from reduce at Nomura.
• Parker-Hannifin (PH) to buy from hold at KeyBanc.
• Akamai (AKAM), ShoreTel (SHOR), AMB Property (AMB) and ProLogis (PLD) to buy from hold at Stifel Nicolaus.

Continue reading Analyst Calls: AAPL, AEO, CREE, DELL, HPQ, IBM, LMT, MMI, MYGN, PH ...

Analyst Calls: AAPL, AEO, CREE, DELL, HPQ, IBM, LMT, MMI, MYGN, PH ... originally appeared on BloggingStocks on Thu, 17 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

The list of stocks has been whittled down to four. Chevron Corporation (CVX) made the cut to become the oil company stock. Three defense sector powerhouses are competing for one spot in Chasing Value: 2011 Stock Picks -- The Journey Begin.

Today we take a more comprehensive view returning to earlier metrics, and adding some other criteria in order to reach a conclusion. This series began with the contention that making specific predictions was a fools errand with the danger to your portfolio coming from "black swans". To try and add some general counter measures to this possibility I decided that the defense and oil sectors might provide protection against the greatest of threats, war and terrorism. On that basis I posted Chasing Value: You Must Own Defense and Oil for Safety.

Continue reading Chasing Value: Defense and Oil -- Part 4 Conclusion

Chasing Value: Defense and Oil -- Part 4 Conclusion originally appeared on BloggingStocks on Fri, 17 Dec 2010 11:00:00 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 been tough going for Lockheed Martin (LMT) in 2009-10, as well as for defense stocks overall," notes Stephen Leeb.

The editor of Leeb's Income Performance Letter explains, "Investors are concerned about the impact cutbacks in defense spending will have on profits. Still, the company arguably is the best positioned of the major defense contractors to weather a smaller defense budget.

"The company is bracing for leaner times and has taken cost-savings measures, such as offering early retirement incentives to executives. And its share price appears to have more than discounted any cuts that may come down the pike.

Continue reading Lockheed Martin (LMT): Defensive Value

Lockheed Martin (LMT): Defensive Value originally appeared on BloggingStocks on Thu, 18 Nov 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 1

Chasing Value: Scoping Out Defense Contractors -- Part 1 originally appeared on BloggingStocks on Mon, 11 Oct 2010 14:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Credit Suisse upgraded Netflix (NFLX) to neutral from underperform and raised its price target to $140 from $90. The firm's survey work indicates Netflix's streaming offering is compelling and will continue to grow as it acquires additional streaming content.
• Barclays upgraded Ford (F) to overweight from equal weight, citing the company's earnings power, reduced cost base, expectations for a return to prior peak margins and valuation. The firm raised its target to $16 from $15.
• Merriman upgraded OpenTable (OPEN) to buy from neutral based on increased visibility into international expansion from the toptable.com acquisition and upside from its Spotlight product.
• Siemens (SI) was upgraded to conviction buy from buy at Goldman.
• Medicis (MRX) was upgraded to buy from hold at Jefferies.
• IDEX (IEX) was upgraded to outperform from neutral at Baird.

Continue reading Analyst Calls: BT, BWA, COG, F, GD, HRS, LMT, MRK, NFLX, NOC, OPEN, SI ...

Analyst Calls: BT, BWA, COG, F, GD, HRS, LMT, MRK, NFLX, NOC, OPEN, SI ... originally appeared on BloggingStocks on Thu, 16 Sep 2010 11:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Goldman upgraded Costco (COST) to buy from neutral based on valuation, improving fundamentals and potential catalysts. The firm raised its price target to $68 from $62.
• Soleil upgraded MGM Resorts (MGM) to buy from hold, citing valuation, easing balance sheet concerns and a multiyear convention recovery. The firm upped its target for shares to $14 from $13. Note, Soleil also downgraded Las Vegas Sands (LVS) to hold from buy.
• Piper Jaffray upgraded Phillips-Van Heusen (PVH) to overweight from neutral with a $59 price target following the company's better-than-expected Q2 results.
• Dell (DELL) was upgraded to buy from outperform at CLSA.
• CommScope (CTV) was upgraded to buy from neutral at UBS.
• EnCana (ECA) was upgraded to sector outperformer from sector performer at CIBC.

Continue reading Analyst Calls: BA, COST, DELL, GD, INTC, LVS, MGM, PCLN, TWX, V, VIA ...

Analyst Calls: BA, COST, DELL, GD, INTC, LVS, MGM, PCLN, TWX, V, VIA ... originally appeared on BloggingStocks on Wed, 08 Sep 2010 11:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• BMO Capital upgraded Noble Energy (NE) to outperform from market perform and raised its target to $85 from $78. The firm upgraded Noble based on Niobrara field potential and record-breaking reserve potential at the Leviathan prospect.
• Wells Fargo upgraded Raytheon (RTN) to outperform from market perform based on relative valuation, strong balance sheet and International sales exposure.
• ThinkEquity upgraded Cerner (CERN) to buy from hold based on valuation and EMR momentum. The firm raised its price target on shares to $86 from $80.
• Sanofi-Aventis (SNY) was upgraded to buy from hold at Societe Generale.
• Cavium Networks (CAVM) was upgraded to outperform from market perform at JMP Securities.
• CSG Systems (CSGS) was upgraded to outperform from perform at Oppenheimer.

Continue reading Analyst Calls: AZO, CERN, CIS, INTC, LMT, LULU, NE, RTN, SNY, TXN ...

Analyst Calls: AZO, CERN, CIS, INTC, LMT, LULU, NE, RTN, SNY, TXN ... originally appeared on BloggingStocks on Mon, 30 Aug 2010 12:00:00 EST. Please see our terms for use of feeds.

Northrop Grumman (NOC) may be a U.S. Air Force favorite, but it does not deserve a place in your portfolio right now.

Northrop announced it received an indefinite-delivery/indefinite-quantity (ID/IQ) award from the Air Force that has a potential value of $919 million collectively over 10 year. Northrop will compete to provide mission planning software systems and tools that enable warfighters to plan missions and transfer required data to aircraft avionics.

Unfortunately for Northrop, this announcement was overshadowed by Goldman Sach's announcement that it has added Northrop to its "conviction sell" list today.

Frankly, even with the announcement of this new contract, I agree with the folks at Goldman. Northrop has been in a persistent downtrend since the end of April and is continuing to form lower highs and lower lows. A temporary support level has established itself at $54, but I don't expect this level to hold up for long.

Continue reading Northrop Fails to Fly Higher

Northrop Fails to Fly Higher originally appeared on BloggingStocks on Mon, 12 Jul 2010 15:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Collins Stewart upgraded BP (BP) to buy from hold after the company canceled its dividend payments and agreed to put $20 billion in a claims escrow fund.
• Credit Suisse upgraded First Solar (FSLR) to outperform from neutral and raised its target to $150 from $110.20. The firm raised estimates given expectations for strong demand and lower costs and believes pricing upside for Q2/Q3 is not reflected in valuation.
• Argus upgraded EMC (EMC) to buy from hold, citing valuation and notes that the company's VMware (VMW) stake is undervalued.
• Rio Tinto (RTP) was upgraded to buy from hold at Societe Generale.
• Sunoco (SUN) was upgraded to overweight from equal weight at Barclays.
• UBS (UBS) was upgraded to outperform from underperform at Macquarie.

Continue reading Analyst Calls: AAPL, AMZN, BP, DTV, EMC, FSLR, LMT, NOK, RTP, SNDK, UBS ...

Analyst Calls: AAPL, AMZN, BP, DTV, EMC, FSLR, LMT, NOK, RTP, SNDK, UBS ... originally appeared on BloggingStocks on Thu, 17 Jun 2010 10:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Bernstein upgraded Corning (GLW) to outperform from market perform based on Gorilla glass prospects and valuation. The firm raised its price target to $22 from $21.
• RBC Capital upgraded Beckman Coulter (BEC) two rating levels to outperform from underperform, citing valuation and customer checks that indicate high retention rates. The firm upped its target for shares to $65 from $55.
• Credit Suisse upgraded Canadian Pacific (CP) to outperform from underperform. The firm expects Canadian Pacific to have stronger-than-average Q2 volume growth, improved productivity and notes leverage to growth in Asia, among other reasons for the upgrade. The firm raised its target to $75 from $59.
• Freeport McMoRan (FRX) was upgraded to overweight from neutral at HSBC.
• Solera (SLH) was upgraded to strong buy from buy at Needham.
• Jefferies upgraded IPC The Hospitalist Co. (IPCM) to buy from hold.

Continue reading Analyst Calls: BEC, BRCM, CP, CVS, DO, GLW, INTC, LMT, NE, NVDA, RIG, RTN ...

Analyst Calls: BEC, BRCM, CP, CVS, DO, GLW, INTC, LMT, NE, NVDA, RIG, RTN ... originally appeared on BloggingStocks on Tue, 08 Jun 2010 12:20:00 EST. Please see our terms for use of feeds.

Military contractor Lockheed Martin (LMT), whose colleagues include Boeing (BA) and Raytheon (RTN), is up today on first-quarter data. At the time of this writing, shares were higher by 1.3%.

Net income came in at $1.45 per share on a reported basis, a decrease of 23 cents compared to the year-ago period. However, there was a charge of 25 cents for the elimination of a tax deduction related to Medicare included in the current per-share profit number, so that should be taken into account. Wall Street was looking for $1.34 per share, so no matter what, management beat expectations.

Continue reading Lockheed Martin Trading Higher on Q1 Numbers

Lockheed Martin Trading Higher on Q1 Numbers originally appeared on BloggingStocks on Wed, 21 Apr 2010 15:00:00 EST. Please see our terms for use of feeds.

However, at least one investor is feeling anxious ahead of Thursday morning's event -- around 11 a.m. Eastern today, a collar spread crossed the tape on LMT. A block of 300 contracts traded at the equity's February 80 call at the bid price of $0.75, while a matching block of 300 contracts simultaneously traded on the February 75 put for the ask price of $1.50. With LMT trading near $77 at last check, both options are currently out of the money.

Continue reading Anxious Investor Collars Lockheed Martin Ahead of Earnings

Anxious Investor Collars Lockheed Martin Ahead of Earnings originally appeared on BloggingStocks on Wed, 27 Jan 2010 14:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Goldman upgraded 3M Company (MMM) to conviction buy from buy, citing positive global industrial data, underappreciated organic growth and earnings momentum, among other reasons. The firm raised its target to $105 from $100.
• Citigroup upgraded Manpower (MAN) to buy from hold to reflect improvements in the temporary employment sector. The firm raised its target price on shares to $69 from $61.
• Baird upgraded Cerner (CERN) to outperform from neutral and raised its target to $104 from $89 based on Q4 bookings momentum, positive newsflow and reasonable valuation.
• Dow Chemical (DOW) was upgraded to overweight from equal weight at Barclays.
• Magna International (MGA) was upgraded to outperform from market perform at Wells Fargo.

Continue reading Analyst Upgrades, Downgrades and Initiations: AOL, DOW, KSS, LMT, MAN, MMM, SONC ...

Analyst Upgrades, Downgrades and Initiations: AOL, DOW, KSS, LMT, MAN, MMM, SONC ... originally appeared on BloggingStocks on Wed, 06 Jan 2010 11:20:00 EST. Please see our terms for use of feeds.

This is the third screening to find value among Fortune's 25 corporate world leaders that have demonstrated an ability to regenerate themselves from within. The list has been cut to 18 and will be cut further here.

The methodology of using basic stock data points to identify potential value investments only sets the stage for success -- it assures nothing. While it is true that paying less is better than paying more and getting a higher yield is better than less, this gives you a scant picture of what is in people's hearts and minds, and that is harder to judge. Like the weather, no matter the predictions, you may not find out it is raining until you are standing in it. Regardless, it should be advantageous to start with good stock (pun intended) before you take to whittlin', and that we have.

Continue reading Serious Money: Fortune's 25 leaders, 18 remain

Serious Money: Fortune's 25 leaders, 18 remain originally appeared on BloggingStocks on Wed, 02 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

Yesterday I started a review of 25 companies that Fortune deemed most successful according to their peers in developing quality leadership. Today I review the remaining 20, searching to find the ones that might be worth investing in.

Price-to-book (from 11/27/09) was used as the first value screen. The theory being from a value investor's perspective that buying for a price at or near the break-up value of the company provides downside protection. Of course that is easier said than done.

Continue reading Serious Money: Fortune's 25 leaders, now 20

Serious Money: Fortune's 25 leaders, now 20 originally appeared on BloggingStocks on Tue, 01 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

The recent issue of Fortune magazine discusses how the best of the best train, guide and nurture top managers to become the leaders that will propel their corporations successfully forward. They list the top 25 companies, which I have used as the basis of a new review to see how they would fair against common metric screens.

In the past few months, many articles have posited that large-cap stocks should excel in the coming year based on their lagging the market behind smaller, more volatile stocks flying out of the March lows. I do not believe this is universally true. Plenty of large-cap stocks did well, such as Anadarko Petroleum (APC), Apple (AAPL) and Google (GOOG), while many small caps went nowhere. Even among the large caps included in Fortune's "Leadership 25," some have doubled.

Continue reading Serious Money: Fortune's 25 leaders among leaders

Serious Money: Fortune's 25 leaders among leaders originally appeared on BloggingStocks on Mon, 30 Nov 2009 13:00:00 EST. Please see our terms for use of feeds.

Boeing lost $2.23 per share in the third quarter. The comparison is pretty tough, because in the similar quarter last year, the company earned 96 cents per share. Boeing was expected to lose somewhere around $2.12 per share, according to Earnings.com. Unfortunately, the guidance for the full fiscal year is pretty bad, too. What once was a range between $4.70 per share and $5.00 per share has now dropped to one with a low of $1.35 per share and a high of $1.55 per share.

Continue reading Buying Boeing requires bravery after Q3 loss

Buying Boeing requires bravery after Q3 loss originally appeared on BloggingStocks on Wed, 21 Oct 2009 15:00:00 EST. Please see our terms for use of feeds.