These are some of the top analyst upgrades and positive calls we are seeing in trading early this Thursday morning:
Jon C. Ogg
August 14, 2008
We have been reviewing which publicly traded energy companies have lost the most value in the past year, and we are breaking these down by sector and by sub-sector. While composing this list is not particularly amusing, it does give an us an idea of what’s happening in the energy business. The days of throwing darts at a group of energy stocks are seeming to be farther and farther in the past as investors seem to be looking at quality more than evvery after turbulent times. Today’s installment looks at alternative energy.
Ethanol stocks appear to be under pressure this morning. Citigroup has downgraded the group to a SELL rating, partially based upon the Midwest flooding. VeraSun (NYSE: VSE) and BioFuel Energy (NASDAQ: BIOF) were cut to a "SELL" rating from "BUY" and Archer Daniels Midland (NYSE: ADM) was cut to "HOLD" from "BUY."
Over the last week and a half the flooding has caused irreparable damage to this year’s corn market. Corn prices have risen and are likely to destroy margins despite the subsidy. Cash costs are running above sell-through rates for small and mid-sized producers and Citi even believes some may be forced to shut down over the coming months.
Jon C. Ogg
June 12, 2008
Several recent ethanol IPOs have had a tough time as concerns mount that a lack of corn supply could drive their cost of revenue up. The four companies the represent most of the money taken in from the capital markets recently are BioFuel Energy (BIOF), U.S. BioEnergy (USBE), VeraSun (VSE), and Aventine Renewable Energy (AVR). They may be about to get a hand.
According to CNNMoney, American farmers are ready to grow their biggest corn crop ever, an astonishing 12.8 billion bushels. The ethanol industry will need it. CNN figures say "ethanol production is forecast to double by the end of 2008 to more than 13 billion gallons."
Fear of lack of corn has hammered stock prices. VeraSun hit $30 a bit over a year ago. It now trades at about $14. Shares of the company and its peers have recovered slightly. Part of this is due to a the House of Representatives beginning to amending an energy bill expected to call for greater use of alternative fuels. But, that is could comfort if the cost or materials stays high.
VeraSun’s revenue has been fairly flat for the last three reported quarters, at around about $145 million. But cost of revenue has gone up from $88 million in the September 2006 quarter to $135 million in the March 2007 quarter.
That trend may finally move into reverse.
Douglas A. McIntyre
(APPAD) AP Pharmaceuticals announces the pricing of its underwritten public offering of 21.2 million shares of its common stock at a public offering price of $1.65 per share.
(BBND) Bigband Networks announced order for its routers by Korean cable operator.
(BIDU) Baidu.com noted as positive speculative play in China by Cramer on Mad Money.
(BIOF) BioFuel priced its IPO at$10.50 per share.
(BOT) CBOT may get a sweetened bid from CME according to WSJ.
(CEO) CNOOC noted as one of the solid and stable companies in China by Cramer on Mad Money.
(CHL) China Mobile noted as one of the solid and stable companies in China by Cramer on Mad Money.
(FMCN) Focus Media noted as positive speculative play in China by Cramer on Mad Money.
(GIVN) Given Imaging receives FDA marketing clearance for PillCam ESO 2.
(HOKU) Hoku Scientific traded up over 60% after a $678 million order from Suntech power.
(IRBT) iRobot received Lockheed Martin order to be the provider of the Centralized Controller Device for the U.S. Army’s Future Combat Systems program.
(IVZ) INVESCO announced a $500 million share buyback plan.
(K) Kellogg is trying to create healthier recipes for sugary cereals.
(SNY) Sanofi-Aventis traded down 3% after an FDA review panel voted 14-0 against its diet drug over lack of safety concerns.
(SRZ) Sunrise Assisted Living received activist shareholder complaints for management change by Millennium Partners.
(SSW) Seaspan noted as one of the solid and stable companies in China by Cramer on Mad Money.
(SYT) Sygenta announced that its CEO will retire at the end of 2007.
(TASR) Taser announced an extended range electronic projectile.
(TGEN) Targeted Genetics reported Phase I/II swelling reduction in inflammatory arthritis clinical data.
(WMT) Wal-Mart reportedly has theft rising at stores.
(ZILA) Zila’s CEO has resigned effective immediately to pursue other interests.
Jon C. Ogg
June 14, 2007
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
| Today’s top tickerspy Indexes | |
| Domestic Telecom ... | +2.6% |
| Stem Cell Stocks | +2.3% |
| Pain Management S... | +2.1% |
| Ethanol and Biofu... | +1.9% |
| Savings and Loan ... | +1.8% |
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