In the Equity and Income portfolio, Argus sells its position in Atlanta-based AGL Resources Inc. (NYSE: GAS). AGL is an energy services holding company that distributes natural gas to residential, commercial, industrial and governmental customers in Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland. The company’’s Distribution Operations segment constructs, manages, and maintains intrastate natural gas pipelines and distribution facilities. The stock, which was cut to Underperform yesterday by Zacks, currently yields 4.60%.

Argus used the proceeds from the sale and other cash on hand to establish a position in office products giant Staples Inc. (NASDAQ: SPLS). The company offers various office supplies and services, office machines and related products, computers and related products, and office furniture under Staples, Quill and other proprietary brands. Staples pioneered the office superstore concept, and it has been a leading distributor since 1986. Trading considerably below the 52-week high of $16.93, Staples also offers a solid 3.42% dividend. The Wall St. consensus price target for the stock is $12.50.

In the Argus Growth and Income portfolio, the firm sells two of its holdings. The first is Ford Motor Co. (NYSE: F). Overall, Ford had its highest fourth-quarter pretax profit in more than a decade. On the negative side, Ford lost $732 million in Europe in the fourth quarter, and analysts are modeling continued losses in 2013. They expect European operations to begin to recover in 2014. Since inclusion in the Argus portfolio in December 2011, the Ford shares have appreciated more than 27% while providing an annual yield topping 3%.

Argus also sells medical technology company Becton, Dickinson and Co. (NYSE: BDX). Trading near a 52-week high, the company should continue to benefit from increased health care spending both in the United States and overseas, especially in emerging markets. But its guidance for 2013 was below expectations and it faces continued weak economic conditions in Europe. Since inclusion in the Argus portfolio in August 2010, the stock advanced 23% while providing an annual dividend yield exceeding 2%.

With the proceeds from the sales, Argus purchased shares of Oracle Corp. (NASDAQ: ORCL), the world’s largest independent enterprise software company. Its annual revenues exceeded $37 billion, with about half coming from overseas. The analysts at Argus feel that, while the company is clearly an industry leader, its valuation metrics do not always reflect this leadership position. Oracle is trading below the peer average trailing EV/EBITDA multiple. Although the shares yield less than 1%, Oracle is growing its dividend faster than the market. The current Thomson/First call estimate for the tech giant is $37.73.

Argus also is buying Houston-based Sysco Corp. (NYSE: SYY). The company markets and distributes a wide range of food and related products, primarily to the food service or food-away-from-home industry. Overall revenues were bolstered by moderate food-cost inflation (up 2.2%), acquisitions and higher volumes. The analysts expect Sysco’s business transformation initiative to improve operating efficiency over the long term, and the shares provide an above-market yield of 3.5% at current prices. The current consensus price target estimate for the stock is $30.

In their Mid-Cap Growth portfolio, Argus sold two current holdings. Hologic Inc. (NASDAQ: HOLX) develops and manufactures diagnostic and medical imaging systems, primarily serving the health care needs of women. Along with equipment and device sales, Hologic generates more than half its revenue from consumables and disposables. Since inclusion in the portfolio in January 2011, Hologic shares have appreciated approximately 18%.

Argus also sells its position in Gentherm Inc. (NASDAQ: THRM), which offers design, development and manufacture of heating, cooling and ventilating devices worldwide. The company’s principal product is its Climate Control Seat (CCS) system, which permits drivers and passengers to control the heating and cooling of their seats. Another good portfolio name, the shares have appreciated almost 19%.

For the Mid-Cap Growth portfolio, the analysts add Zimmer Holdings Inc. (NYSE: ZMH), the nation’s largest pure-play maker of orthopedic devices. The company designs, develops and manufactures reconstructive orthopedic implants, including joint, dental and spinal implants; trauma products; and related orthopedic surgical products. Argus recently upgraded the Zimmer shares to Buy, based on the belief that improving financial metrics, combined with higher surgical volumes at hospitals, will drive stronger sales and EPS growth in 2013. The consensus estimate for Zimmer is $76.50.

Also added to the portfolio is Pep Boys — Manny, Moe & Jack (NYSE: PBY). The company provides automotive repair and maintenance services, tires, parts and accessories. It operates 740 stores and more than 7,200 service bays in 35 states and Puerto Rico. Although shares are trading in the lower half of their 52-week range, Pep Boys expects improved performance beginning in the fourth quarter, reflecting the impact of more-moderate gasoline prices, an increase in vehicle miles driven and a return to more-typical seasonal trends. The consensus price target for the stock is $11.

Portfolio management is not only picking the right stocks, it is the art of knowing when to sell winners and losers. Investors can note that Argus was willing to take quality gains and rotate the capital to stocks they felt had more upside, a strategy that always makes sense.

Abercrombie & Fitch Co. (NYSE: ANF) raised to Outperform at William Blair ad raised to Buy at Stern Agee.

Apple Inc. (NASDAQ: AAPL) reiterated Outperform with $750 target at Credit Suisse, with near-term risk-reward prices of $520 and $630.

Automatic Data Processing Inc. (NASDAQ: ADP) reiterated Buy with $63 target at Argus.

Baker Hughes Inc. (NYSE: BHI) raised to Buy at CLSA.

Cablevision Systems Corp. (NYSE: CVC) cut to Sell at Goldman Sachs.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH) raised to Outperform at Credit Suisse.

Credit Suisse Group A.G. (NYSE: CS) named value stock of the day at Zacks.

E.I. DuPont de Nemours & Co. (NYSE: DD), or DuPont, named Bear of the Day at Zacks.

Ford Motor Co. (NYSE: F) reiterated Buy with $19 target at Argus.

Global Payments Inc. (NYSE: GPN) started as Outperform at Credit Suisse.

Halliburton Co. (NYSE: HAL) raised to Buy at CLSA.

Harman International Industries Inc. (NYSE: HAR) started as Market Perform at Wells Fargo.

Hologic Inc. (NASDAQ: HOLX) reiterated Buy with $27 target at Argus.

IAMGold Corp. (NYSE: IAG) cut to Sector Perform at CIBC.

MoneyGram International Inc. (NYSE: MGI) cut to Neutral at Credit Suisse.

NetApp Inc. (NASDAQ: NTAP) raised to Outperform at Raymond James.

Paychex Inc. (NASDAQ: PAYX) cut to Neutral at Credit Suisse.

Quanta Services, Inc. (NYSE: PWR) named Bull of the Day at Zacks.

Safe Bulkers, Inc. (NYSE: SB) reiterated Underperform at BofA/ML.

Solazyme Inc. (NASDAQ: SZYM) maintained Buy but lowered target to $10 at Canaccord Genuity.

Staples Inc. (NASDAQ: SPLS) reiterated Buy with $14 target at Argus.

Time Warner Cable Inc. (NYSE: TWC) raised to Overweight at JPMorgan.

Walter Energy Inc. (NYSE: WLT) cut to Underperform at BofA/ML.

Here are the changes made in the Argus Model Portfolios as well. And speaking of model portfolios, Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-B) made a huge number of changes from their equity portfolio holdings.

JON C. OGG

Canaccord  also reiterated its buy rating on Watson Pharmaceuticals (WPI: NYSE)

Goldman Sachs upgraded Community Health Systems (NYSE: CYH) to neutral.

Bank of America Upgraded AstraZeneca (NYSE: AZN) to neutral

Deutsche Bank downgraded Costco Wholesale (NASDAQ: COST) to hold

Pfizer Inc. (NYSE: PFE) reported first-quarter net income fell 19% on 6.6% lower revenue. Earnings were $1.79 billion, or 24 cents a share, compared with $2.22 billion, or 28 cents, in the year-earlier quarter. Adjusted earnings were 58 cents a share compared with 60 cents.

Thomson Reuters (NYSE: TRI) reported its first-quarter profit was $314 million, or 38 cents a share compared to $250 million, or 30 cents a share a year ago. Revenue rose to $3.654 billion, from $3.3 billion a year ago.

Avon Products Inc. (NYSE: AVP) reported an 82% drop in first-quarter profit to $26.5 million– 6 cents a share, from $143.6 million, or 33 cents, a share in the same quarter last year. Sales fell 2% to $2.53 billion for the quarter, down from $2.59 billion in the year-ago period.

The Blackstone Group LP (NYSE: BX) Started as Buy at Citigroup.
ConocoPhillips (NYSE: COP) Maintained Buy on Focus List with $81 target at Argus.
Discovery Communications, Inc. (NASDAQ: DISCA) Started as Neutral at Credit Suisse.
General Growth Properties Inc. (NYSE: GGP) Raised to Outperform at Credit Suisse.
Hologic Inc. (NASDAQ: HOLX) replaced Allergan Inc. (NYSE: AGN) on the Convition Buy List at Goldman Sachs.
NVIDIA Corporation (NASDAQ: NVDA) Raised to Outperform as Bull of the Day at Zacks Investment Research.
Strayer Education (NASDAQ: STRA) was named the Bear of the Day at Zacks Investment Research.
Turkcell (NYSE: TKC) Cut to Underperform at Credit Suisse.
UnitedHealth Group Inc. (NYSE: UNH) Raised to Buy at Stifel Nicolaus.
United Rentals, Inc. (NYSE: URI) Started as Buy at Goldman Sachs.
Waste Management Inc. (NYSE: WM) Maintained BUY with $44 target at Argus.
WellPoint Inc. (NYSE: WLP) Raised to Buy at Stifel Nicolaus.

You can join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

24/7 Wall St. asked Audit Integrity to put together a list of companies traded on US exchanges with market caps of more than $3 billion that do particularly poorly in the areas  of corporate governance, detailed disclosure of high-risk events including M&A and restructurings, revenue and expense recognition, and asset and liability valuation.

Based on the Audit Integrity model, 24/7 created a list of the twenty companies that Wall St. can trust the least.  Among the companies that the analysis flagged are Altria (NYSE:MO), Chevron (NYSE:CVX), Credit Suisse (NYSE:CS), GE (NYSE:GE), Blackstone (NYSE:BX), Wal-Mart (NYSE:WMT),  Wells Fargo (NYSE:WMT), and Dow Chemical (NYSE:DOW)

The list:

Methodology:  The Audit Integrity Accounting and Governance Risk (AGR®) rating is a forensic measurement of the transparency and reliability of a corporation’s financial reporting and governance practices. The focus of AGR analysis is on identifying the measures associated with fraud, and quantifying those risks for interested stakeholders to company stock prices, securities litigation, and major restatement probabilities.

Audit Integrity applies over 100 accounting and governance metrics to a company’s publicly-filed information. The resulting calculation produces the AGR, a percentile score ranging from 0 to 100, with corresponding ratings from Very Aggressive to Conservative.

Companies rated Very Aggressive or Aggressive have proven to be much more likely to face class action litigation and financial restatements, and to suffer severe equity loss. Conversely, those companies that have been consistently rated Conservative are considered the most trustworthy.

AGR significantly improves the predibility of traditional risk models.

The AGR and its underlying metrics are used by regulators, auditors, insurance companies, investment managers, and corporations, and are often incorporated in reporting by major financial media.

Douglas A. McIntyre

Biogen-Idec (BIIB) Started as Underperform at BofA/Merrill Lynch.
Forest Labs (FRX) Cut to Hold at Needham.
Genzyme (GENZ) Started as Buy at BofA/Merrill Lynch.
Gilead (GILD) Started as Buy at BofA/Merrill Lynch.
Hologic (HOLX) Cut to Hold at Canaccord.
Las Vegas Sands (LVS) Raised to Buy at Argus.
Mosaic (MOS) Started as Sector Perform at CIBC.
Novavax (NVAX) Cut to Market Perform at Rodman & Renshaw.
Transocean (RIG) Started as Outperform at BMO Capital.
Textron (TXT) Raised to Conviction Buy List at Goldman Sachs.

JON C. OGG

Barrick Gold (ABX) Cut to Sector Perform at CIBC.
Big 5 Sports (BGFV) Raised to Neutral from Underweight at Piper Jaffray.
Digital Realty Trust (DLR) Cut to Hold at KeyBanc.
DISH Network (DISH) Raised to Outperform at CRedit Suisse.
Hologic (HOLX) Cut to Hold at Citigroup.
Human Genome (HGSI) Raised to Buy at ThinkEquity.
Myriad Genetics (MYGN) Started as Outperform at William Blair.
Pharmerica (PMC) Cut to Perform at Oppenheimer.
Savient Pharma (SVNT) Cut to Underperform at Jefferies.
Talbots (TLB) Raised to Outperform at FBR.

JON C. OGG
AUGUST 4, 2009

United Microelectronics (UMC) Fails with weak results and analyst upgrade. Sells off to $2.53 from 52-week high of $4.48

Boeing (BA) Concerns about plane orders as airline industry falls apart. Down to $61.06 from 52-week high of $107.15

Akamai Technologies (AKAM) Poor outlook for balance of the year. Sells off to $22.69 from 52-week high of $41.45.

Hologic (HOLX) Lowers sales forecasts. Dips to $18.18 from 52-week high of $36.44

Bare Essentials (BARE) Analyst downgrade. Plunges to $11.40 from 52-week high of $29.90

Douglas A. McIntyre

• Akamai (AKAM) Cut to Market Perform at FBR.
• Avon (AVP) Cut to Hold at Deutsche Bank.
• California Pizza Kitchen (CPKI) Cut to Neutral at Baird.
• CB Richard Ellis (CBG) Cut to Neutral at JPMorgan.
• FedEx (FDX) Cut to Equal Weight at Morgan Stanley.
• General Growth Properties (GGP) Cut to Sell at Citigroup.
• Hologic (HOLX) Cut to Hold at Jefferies.
• Jones Lang LaSalle (JLL) Cut to Neutral at JPMorgan.
• Temple-Inland (TIN) Cut to Neutral at Credit Suisse.
• THQ (THQI) Cut to Perform at Oppenheimer.
• Timberland (TBL) Cut to Sell at Citigroup.
• T.Rowe Price (TROW) Cut to Market Perform at Wachovia.
• USANA (USNA) Cut to Underperform at Jefferies.

Jon C. Ogg
July 31, 2008

MGM Mirage (MGM) Slowdown in casino earnings at key rival. Sells off to $47.89 from 52-week high of $100.50.

Pharmanet Development (PDGI) Awful quarter. Shares dumped to $15.41 from 52-week high of $43.05.

Elizabeth Arden (RDEN) Posts loss. Drops to $13.13 from 52-week high of $28.05.

Hologic (HOLX) Profit picture falls apart. Sells down to $21.25 from 52-week high of $36.44.

Irobot (IRBT) CFO departs as do solid numbers. Falls to $13.19 from 52-week high of $24.30.

Douglas A. McIntyre