24/7 Wall St. » CVG

Implications of Major S&P Component Changes (MJN, MBI, V, CIEN, CLF, DYN, KBH, GMCR, BTH, CHP, CVG, ROST, CLF, SNH, ATW, DY, KELYA, ELY)

247wallst — Sat, 12 Dec 2009 16:24:05 +0000

Standard & Poor’s often makes S&P index changes for the S&P 500, the S&P Mid-Cap 400 and the S&P Small Cap 600 at the end of the year. This probably is not going to be the last component shuffling before the end of the year, but this is likely to create some action in several very active stocks. Some of the big changes announced Friday evening were Mead Johnson Nutrition Co. (NYSE: MJN), MBIA Corp. (NYSE: MBI), Visa Inc. (NYSE: V), Ciena Corp. (NASDAQ: CIEN), Cliffs Natural Resources Inc. (NYSE: CLF), Dynegy Inc. (NYSE: DYN), KB Home Inc. (NYSE: KBH) and Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR).

Some of these changes will only have minor buy and sell effects from S&P index mutual funds and ETFs, but some will see significant changes.

Mead Johnson Nutrition Co. (NYSE: MJN) will replace MBIA Corp. (NYSE: MBI) in the S&P 500, after Bristol-Myers Squibb (NYSE:BMY) is splitting off its approximately 83% holdings in Mead Johnson Nutrition. MBIA currently ranks 500th in the index and is no longer representative of the S&P 500 index market cap space. That is called the MBIA boot.

Visa Inc. (NYSE: V) will replace Ciena Corp. (NASDAQ: CIEN) in the S&P 500. Ciena will move down an index rather than be booted entirely as it will replace Blyth Inc. (NYSE: BTH) in the S&P MidCap 400, and Blyth will replace C&D Technologies Inc. (NYSE: CHP) in the S&P SmallCap 600. C&D was the smallest component of the S&P SmallCap 600, and is now too small for even the small-cap index.

S&P MidCap 400 components Ross Stores Inc. (NASD:ROST), Cliffs Natural Resources Inc. (NYSE:CLF) and SAIC Inc. (NYSE:SAI) will move up an index to replace Dynegy Inc. (NYSE:DYN), KB Home Inc. (NYSE:KBH) and Convergys Corp. (NYSE:CVG) in the S&P 500 Index. Dynegy, KB Home and Convergys will move down an index and will replace Ross Stores, Cliffs Natural Resources and SAIC in the S&P MidCap 400 index.

S&P SmallCap 600 components Senior Housing Properties Trust (NYSE: SNH), Green Mountain Coffee Roasters Inc. (NASDAD: GMCR) and Atwood Oceanics Inc. (NYSE: ATW) will move up an index to replace Dycom Industries Inc.(NYSE: DY), Kelly Services Inc. (NASDAQ: KELYA) and Callaway Golf Co. (NYSE: ELY) in the S&P MidCap 400. Dycom, Kelly Services and Callaway Golf will move down an index rather than being eliminated and will replace Senior Housing Properties, Green Mountain Coffee Roasters and Atwood Oceanics in the S&P SmallCap 600 index.

As most of these are index moves, they tend to have less of a formal impact on the stocks. The big move will be Visa, Inc. (NYSE: V), which will now get to finally join the S&P 500. Its market cap varies from every source: $63.28 billion at Yahoo! Finance, Google Finance is $68.65 billion, and Bloomberg is at $60.4 billion. Shares rose over 3.3% in the after-hours session to $84.10 after closing down 1.2% at $81.34 versus a 52-week trading range of $41.78 to $83.40. We will have to make some calculations on Monday, but this will represent a significant buy-in trade for funds that track the S&P500 that will have to buy million of Visa shares.

JON C. OGG

Posted in Financial Stocks, Index, Mutual Funds Tagged: ATW, BTH, CHP, CIEN, CLF, CVG, DY, DYN, ELY, GMCR, KBH, KELYA, MBI, MJN, ROST, SNH, V

Top Analyst Upgrades (COF, CMCSA, CMA, CNXT, CVG, DEPO, DTSI, QSFT, SY, WFC, WEN)

247wallst — Mon, 05 Oct 2009 11:23:59 +0000

There were many more upgrades than downgrades seen early this Monday morning. These are top upgrades and positive research calls from Wall Street analysts we have seen so far:

Capital One Financial (NYSE: COF) Raised to Conviction Buy List at Goldman Sachs.
Comcast (NASDAQ: CMCSA) Raised to Outperform at Wells Fargo.
Comerica (NYSE: CMA) Raised to Neutral from Sell at Goldman Sachs.
Conexant Systems (NASDAQ: CNXT) Started as Outperform at Oppenheimer.
Convergsys (NYSE: CVG) Raised to Buy at Citigroup.
Depomed (NASDAQ: DEPO) Started as Buy at Merriman Curhan Ford.
Digital Theater Systems (NASDAQ: DTSI) Raised to Buy at Deutsche Bank.
Quest Software (NASDAQ: QSFT) Raised to Buy at Auriga.
Sybase (NYSE: SY) Started as Buy at BofA/Merrill Lynch.
Wells Fargo & Co. (NYSE: WFC) Raised to Buy at Goldman Sachs.
Wendy’s/Arby’s (NYSE: WEN) Started as Buy at SunTrust Robinson Humphrey.

You can join our open email distribution list which goes out several times per week for reminders of the analyst upgrades and downgrades, top day trader alerts, IPO’s, key secondary offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG

Posted in Analyst Calls, Banking, Technology Companies Tagged: CMA, CMCSA, CNXT, COF, CVG, DEPO, DTSI, QSFT, SY, WEN, WFC

The 52-Week Low Club (PDGI)(PRXL)(LVS)(USG)(MF)(CVG)

247wallst — Tue, 28 Oct 2008 15:01:16 +0000

Convergys (CVG) Posts a loss and weak forecast. Drops to $6.82 from 52-week high of $19.18.

MF Global (MF) No major news. Drops to $1.93 from 52-week high of $32.20.

USG Corporation (USG) May have violated lending agreement. Falls to $14.23 from 52-week high of $40.25.

Las Vegas Sands (LVS) Casino stocks out of vogue. Sells down to $4.32 from 52-week high of $148.76.

PAREXEL International (PRXL) Revenue shortfall. Plummets to $6.84 from 52-week high of $36.16.

Pharmanet (PDGI) No news. Sells off to $1 from 52-week high of $43.02.

Douglas A. McIntyre

Posted in HI/LOW Tagged: CVG, LVS, MF, PDGI, PRXL, USG

The 52-Week Low Club 7/25/2008 (SSP)(MNI)(CVG)(ATI)(CROX)(AFFX)

247wallst — Fri, 25 Jul 2008 15:49:35 +0000

Scripps (SSP) Newspaper stock takes big hit on earnings. Falls to $7.17 from 52-week high of $147.78.

McClatchy Newspapers (MNI) Another newspaper company with problems. Sells down to $4.30 from 52-week high of $26.43.

Convergys (CVG) Still dropping after downgrade, to $11.77 against 52-week high of $20.

Allegheny Technologies (ATI) Still dropping after rough earnings. Bottoms at $45.03 from 52-week high of $115.55.

Crocs (CROX) Takes tremendous beating on missing numbers. Plunges to $4.72 from 52-week high $75.21.

Affymetrix (AFFX) Bad Q2 takes shares down to $7.25 from 52-week high of $29.29.

Douglas A. McIntyre

The 52-Week Low Club 7/23/2008 (MIR)(CVG)(ADTC)(FORM)

247wallst — Wed, 23 Jul 2008 14:55:59 +0000

Mirant (MIR) Downgrade from Lehman Brothers. Falls off to $30.90 from 52-week high of $44.61.

Convergy (CVG) Good profits, but cuts forecast. Sells down to $12.69 from 52-week high of $24.30.

A D C Telecommunications (ADTC) Poor outlook with earnings. Drops to $9.70. from 52-week high of $21.

FormFactor (FORM) Oppenheimer downgrade. Dips to $15.56 from 52-week high of $48.48.

Douglas A. McIntyre