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6 Big Losers on a Strong Day (HAYZ, HSII, PEP, KO, RACK, RBS)

247wallst — Tue, 14 Oct 2008 08:58:49 +0000

Traders and investors alike love to look for stocks that are going to run up with a strong market. Yesterday was a record DJIA point move and today we have at least buying strength at the open. But when traders see stocks that are weak in strong markets, they generally either stay away from those companies or they put on bets against them for days as the bad news is out. Imagine how they’d do if the market was down. Below is our list of big losers on a strong day.

Hayes Lemmerz International Inc. (NASDAQ: HAYZ) is down over 25% at$1.80 in early trading. This maker of fabricated steel and castaluminum wheels for cars may just be giving back half of its gains fromyesterday. Its 52-week trading range is $1.28 to $5.02.

Heidrick & Struggles International Inc. (NASDAQ: HSII) is hidingand struggling after lowering net revenue to approximately $630million, down from prior guidance of $650 to $660 million and comparedto consensus of about $627 million. The executive search firm alsosees operating margin of approximately 10% compared to prior guidanceof 13%. Shares are down almost 5% at $24.53 and its 52-week tradingrange is $22.58 to $45.57.

Pepsico, Inc. (NYSE: PEP) posted earnings at $0.99 EPS net and $1.06core earnings vs. $1.08 estimates and put 2008 earnings at $3.67 to$3.68 on a core basis compared to estimates of $3.74. The company alsoannounced that it would shed 3,300 jobs under its new productivity planand would take $550 to $600 million in pre-tax charges. A staple likesoft drinks, bottled water, and chips laying off 3,300 workers is notexactly the norm. This one if off almost 9% at $56.30, and its 52-weektrading range is $53.21 to $79.79.

Coca-Cola Co. (NYSE: KO) is feeling a sharp sting today too. It seemsthat the woes of Pepsi are creating an "earnings taste test challenge"for Coke.

Rackable Systems (NASDAQ: RACK) is getting racked after the server andstorage company issued an earnings warning. It now sees a loss for theyear now, which was not expected by Wall Street even if the street waswilling to accept lower numbers. Shares down 8% at $7.99 right afterthe open and its prior 52-week trading range before a $7.15 printtoday) was $7.47 to $14.51.

Royal Bank of Scotland Group Plc (NYSE: RBS) is now down over 30%. Itis barely a $1.25 stock, but this is a surprise considering the bailoutpackages that are being thrown in the US, the UK, and the EU. It lookslike these guys are choking just like the character on the commercial.

Jon C. Ogg
October 14, 2008

Posted in HI/LOW Tagged: HAYZ, HSII, KO, PEP, RACK, RBS

Top Pre-Market Analyst Downgrades (ADBE, AMB, BLKB, KO, EMCI, HSII, KFN, OMTR, PLD, VAR, VMW, VMC)

247wallst — Mon, 06 Oct 2008 06:36:21 +0000

These are some of the top downgrades we have seen this Monday morning with about 2 hours until the open:

Adobe Systems (ADBE) Cut to Market Perform at FBR.
AMB Property (AMB) Cut to Sell at Goldman Sachs.
Blackbaud (BLKB) Cut to Market Perform at Wachovia.
Coca-Cola (KO) Cut to Hold at Deutsche Bank.
EMC Insurance (EMCI) Cut to Underperform at KBW.
Heidrick & Struggles (HSII) Cut to Underperform at Baird.
KKR Financial (KFN) Cut to Neutral at JPMorgan.
Omniture (OMTR) Cut to Market Perform at FBR.
ProLogis (PLD) Cut to Sell at Goldman Sachs.
Varian Medical (VAR) Cut to Neutral at JPMorgan.
VMware (VMW) Cut to Market Perform at Wachovia.
Vulcan Materials (VMC) Cut to Sell at Goldman Sachs.

Jon C. Ogg
October 6, 2008

Posted in Analyst Calls Tagged: ADBE, AMB, BLKB, EMCI, HSII, KFN, KO, OMTR, PLD, VAR, VMC, VMW

Pre-Market Analyst Calls (September 4, 2007)

247wallst — Tue, 04 Sep 2007 07:12:49 +0000

ABY raised to Neutral at UBS.
AMD raised to neutral at Credit Suisse.
AG raised to neutral at Credit Suisse.
AEO raised to Outperform at Cowen.
BLOG started as Outperform at Wachovia.
DVA raised to Buy at Deutsche Bank.
EXEL cut to Mkt Perform at Wachovia.
FCSX raised to BUy at B of A.
HOKU raised to Mkt Perform at Piper Jaffray.
HSII cut to Sell at UBS.
INFA started as Outperform at CIBC.
KFN cut to Sell at UBS.
KOP cut to Hold at Jefferies.
KPN cut to Hold at Citigroup.
KSU raised to Buy at UBS.
MNST cut to Neutral at UBS.
MXIM started as Outperform at RBC Capital.
OII started as Overweight at JPMorgan.
OTE cut to Peer Perform at Bear Stearns.
PCG raised to Overweight at Lehman.
RDS/A raised to Buy at UBS.
RHI cut to Neutral at UBS.
RIMM cut to Peeer Perform at Bear Stearns.
SMOD cut to Hold at Citigroup.
SPR started as Overweight at Lehman.
TEF cut to Hold at Citigroup.
TMA raised to Outperform at FBR.
TYC raised to Buy at Deutsche Bank.
TYPE started as Buy at B of A.
TYPE started as Buy at Jefferies.
WEC raised to Overweight at Lehman.

Jon C. Ogg
September 4, 2007