24/7 Wall St. » LPX

UBS Lists Stocks That Should Be Sold Now (JCP, SWY, RSH, COP, IRWD, MTH, LPX, KSU, AAPL)

Lee Jackson — Wed, 03 Apr 2013 12:20:05 +0000

One of the biggest complaints for years about Wall St. research was that no firm ever said when to sell. Back in the halcyon days of the late 1980s, and through the 1990s, many stock analysts were very cozy with the companies they covered and the “Chinese Wall” between banking and research was often very thin or nonexistent. Those days, and many of those people, are long gone from Wall St.

Most larger Wall St. firms have their lists of top stocks to buy. We cover these lists for our readers as it gives them a chance to not only see the top stocks to buy, but how the lists have changed. Here is our story on the top UBS stocks to buy in which the firm sees 25% upside.

The current second-quarter report of top picks from UBS A.G. (NYSE: UBS) also includes its analysts “least preferred” list of stocks. Those stocks have an average potential downside of 20%. We screened the list for the stocks with the largest downside potential on a percentage basis. This list may provide investors with a rogues gallery of names to sell short, take profits in, or to just get out of. The following are the “least preferred “ stocks at UBS.

Struggling retailer J.C. Penney Co. Inc. (NYSE: JCP) makes the list. Run by former Apple Inc. (NASDAQ: AAPL) retail guru Ron Johnson, this iconic American retailer has suffered from a constant change of marketing and advertising strategies — none of which has worked. The UBS target price is $10. The Thomson/First Call estimate is $15. Potential downside to the target is 32.8%.

With low margins and growing competition from discount retailers, supermarket chain Safeway Inc. (NYSE: SWY) goes in the shopping cart of stocks to sell. The UBS estimate for Safeway is $19. The Wall St. consensus estimate is $24. Potential downside to the target is 27.9%.

RadioShack Corp. (NYSE: RSH) joins the struggling retailer club. From an outdated name to a horribly competitive niche of retailing, this once successful franchise may be headed for the stock graveyard. The UBS price target is $2. The consensus estimate is close at $2.50. Potential downside to the target is 40.5%.

Integrated oil and gas giant ConocoPhillips (NYSE: COP) is a large cap name that makes the list. America’s third largest oil company spun off its refining, pipelines and chemical divisions a year ago. Some think that was a mistake. The UBS target for the stock is $50. The consensus estimate is $63. ConocoPhillips pays a 4.40% dividend. Potential downside to target 17.2%.

Small cap biotech company Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) may have the proverbial bull’s-eye on its back. With limited revenues and high cash burn, this stock already has almost 25% of the float sold short. The UBS price objective is $11.50. The consensus estimate is $18. Potential downside to the target is 37%.

Home builder Meritage Homes Corp. (NYSE: MTH) may have moved a little ahead of itself. While UBS likes its position in the marketplace, the firm feels that the earnings just do not justify the stock price. The UBS price target is $25 and the consensus estimate is $47.75. With a potential downside to the target of 47%, this is a very contrarian call.

Paper and packaging giant Louisiana-Pacific Corp. (NYSE: LPX) makes the least preferred list. Trading near a 52-week high and also riding the home building boom, the stock is another “fully valued” candidate. The UBS target is $15. The consensus estimate is at $21. Potential downside to the target is right at 30%.

Rounding out the list of stocks to sell is railroad transport Kansas City Southern (NYSE: KSU). It is trading at 26 times earnings, and the UBS team thinks that is extremely high multiple to pay for a railroad. The exposure to a very volatile Mexico is also a concern. The UBS price target for the stock is $83. The consensus is also below the current price at $98.50. The potential downside to the target is 23%.

We remind readers that selling stocks short can be a very risky and rewarding venture. UBS might just be telling its clients that more weakness is ahead in these. We also want to remind investors considering the strategy that short sellers are responsible to pay the dividend or the distribution of names they sell short if that dividend is paid during the time they actual short the stock. The old short selling adage of “stocks often go up like an escalator and down like an elevator” is usually spot on. Especially if you pick the right entry point.

Filed under: Active Trader, Analyst Calls, Value Investing Tagged: AAPL, COP, featured, IRWD, JCP, KSU, LPX, MTH, RSH, SWY, UBS

24/7 Wall St. Closing Bell — November 6, 2012: Markets Open and Close Higher (CS, CMG, BEAM, SMRT, USM, CF, ESRX, PAA, WLT, Z, AMSC, AOL, CVC, CVS, FOSL, LPX, VVUS, GDP, NWSA, RAX, TWO, AES, AGU, CLH, ENB, HFC, JRCC, LEAP, M, THC, TWX, WLP, THQI, CDE, ODP)

Paul Ausick — Tue, 06 Nov 2012 21:06:02 +0000

U.S. equity markets opened higher this morning as investors seemed to prefer a little risk trading on U.S. election day. Asian markets were cautious ahead of today’s elections, while in Europe some weak non-manufacturing PMI data did not seem to curb traders’ enthusiasm (more coverage here). One surprise in Asia was that the Royal Bank of Australia held interest rates at 3.25% when most observers were expecting a 0.25% rate cut. There was no significant data release in the U.S. today, but a $32 billion Treasury auction of 3-year notes went out at the highest yield in seven months (more coverage here).

The U.S. dollar index fell today, now down 0.22% at 80.573. The GSCI commodity index is up 0.6% at 629.85, with commodities prices mostly higher today. WTI crude oil closed up 3.6% today, at $88.71 a barrel. Brent crude trades up 2.8% at $110.72 a barrel. Natural gas is up 1.6% today at about $3.61 per thousand cubic feet. Gold closed at $1,715.00 an ounce, up 1.9% for the day.

The unofficial closing bells put the DJIA up about 133 points to 13,245.52 (1.01%), the NASDAQ rose more than 12 points (0.41%) to 3,011.93, and the S&P 500 rose 0.78% or about 11 points to 1,428.36.

There were several analyst upgrades and downgrades today, including Credit Suisse Group (NYSE: CS) raised to ‘equal weight’ at Barclays; Chipotle Mexican Grill Inc. (NYSE: CMG) raised to ‘buy’ with no change to target price of $320 at BofA/ML; Beam Inc. (NYSE: BEAM) reiterated as ‘buy’ with target price of $74 at Argus; Stein Mart Inc. (NASDAQ: SMRT) started as ‘outperform’ with a target price of $10 at Credit Suisse; and United States Cellular Corp. (NYSE: USM) raised to ‘neutral’ at JPMorgan.

Earnings reports since U.S. markets closed last night have resulted in some price moves today, including these as of the last half hour of trading: CF Industries Holdings Inc. (NYSE: CF) is up 0.3% at $206.16; Express Scripts Holding Co. (NASDAQ: ESRX) is down 12.6% at $54.94; Plains All American Pipeline LP (NYSE: PAA) is up 2.8% at $46.72 after posting a new 52-week high of $46.77 earlier today; Walter Energy Co. (NYSE: WLT) is up 2.5% at $37.45; Zillow Inc. (NASDAQ: Z) is down 18.1% at $28.14 (more coverage here); American Superconductor Corp. (NASDAQ: AMSC) is up 3% at $3.78; AOL Inc. (NYSE: AOL) is up 17.8% at $42.18 after posting a new 52-week high of $42.29 earlier today (more coverage here); Cablevision Systems Corp. (NYSE: CVC) is up 6.7% at $15.43 (more coverage here); CVS Caremark Corp. (NYSE: CVS) is up 0.6% at $46.92 (more coverage here); Fossil Inc. (NASDAQ: FOSL) is down 10.6% at $83.53; Louisiana Pacific Corp. (NYSE: LPX) is down 1.3% at $15.84; and Vivus Inc. (NASDAQ: VVUS) is down 19.9% at $11.97.

After markets close today and before they open tomorrow morning we are scheduled to hear from Goodrich Petroleum Corp. (NYSE: GDP), News Corp. (NASDAQ: NWSA), Rackspace Hosting Inc. (NYSE: RAX), Two Harbors Investment Corp. (NYSE: TWO), AES Corp. (NYSE: AES), Agrium Inc. (NYSE: AGU), Clean Harbors Inc. (NYSE: CLH), Enbridge Inc. (NYSE: ENB), HollyFrontier Corp. (NYSE: HFC), James River Coal Co. (NASDAQ: JRCC), Leap Wireless International Inc. (NASDAQ: LEAP), Macy’s Inc. (NYSE: M), Tenet Healthcare Corp. (NYSE: THC), Time Warner Inc. (NYSE: TWX), and WellPoint Inc. (NYSE: WLP).

Some standouts from today include the following stocks:

THQ Inc. (NASDAQ: THQI) is down 49.3% at $1.53 after posting a new 52-week low of $1.49 earlier today. The video game maker will delay the introduction of revisions to a number of its top-selling games and has hired an advisor to help it evaluate its options and raise cash.

Coeur d’Alene Mines Corp. (NYSE: CDE) is down 21.2% at $23.93. The silver miner reported poor quarterly results. More coverage here.

Office Depot Inc. (NYSE: ODP) is up 17.5% at $2.95. The office supply retailer reported results this morning that were weak, but chatter about a potential merger with OfficeMax Inc. (NYSE: OMX) put a charge into the share price. More coverage here.

Stay tuned for Wednesday. We have noted the following events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
10:30 a.m. – EIA weekly petroleum status report
1:00 p.m. – 10-year note auction
3:00 p.m. – Consumer credit

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AES, AGU, AMSC, AOL, BEAM, CDE, CF, CLH, CMG, CS, CVC, CVS, ENB, ESRX, FOSL, GDP, HFC, JRCC, LEAP, LPX, M, NWSA, ODP, PAA, RAX, SMRT, THC, THQI, TWO, TWX, USM, VVUS, WLP, WLT, Z

24/7 Wall St. Closing Bell — November 5, 2012: Markets Make Last Minute Drive to Gain (DD, QCOM, TGT, WDAY, EXC, AWR, BPI, ETR, ROK, SLW, SO, SYY, TSLA, TWC, RIG, TRLG, CF, ESRX, PAA, WLT, Z, AMSC, AOL, CVC, CVS, FOSL, LPX, VVUS, VRNG, GOOG, EBIX, RDN)

Paul Ausick — Mon, 05 Nov 2012 21:04:19 +0000

U.S. equity markets opened mixed this morning as investors appear to be cautious as tomorrow’s elections get closer. Coupled with possible changes in the U.S., China will replace its leadership at its 18th National Communist Party Congress which convenes on Thursday. China’s non-manufacturing PMI came in better than expected. In Europe, German Chancellor Angela Merkel said the eurozone crisis could last for another 5 years, and bond yields for some of the peripheral nations of the eurozone rose a few basis points. In the U.S., the ISM non-manufacturing index came in lower than expected (more coverage here). Services continued growing in October, but at a slower pace than in September.

The U.S. dollar index rose today, now up 0.19% at 80.750. The GSCI commodity index is down 2% at 626.07, with commodities prices mixed today. WTI crude oil closed up XX% today, at $85.65 a barrel, as demand continues weak in the wake of Hurricane Sandy (more coverage here). Brent crude trades up 1.1% at $108.08 a barrel. Natural gas is up 0.2% today at about $3.56 per thousand cubic feet. Gold closed at $1,683.20 an ounce, up less 0.5% for the day.

The unofficial closing bells put the DJIA up nearly 20 points to 13,113.05 (0.15%), the NASDAQ rose nearly 18 points (0.59%) to 2,999.66, and the S&P 500 rose 0.22% or about 3 points to 1,417.25.

There were several analyst upgrades and downgrades today, including E.I. du Pont de Nemours & Co. (NYSE: DD) cut to ‘neutral’ at Piper Jaffray; Qualcomm Inc. (NASDAQ: QCOM) raised to ‘buy’ at Nomura; Target Corp. (NYSE: TGT) raised to ‘overweight’ at JPMorgan; Workday Inc. (NYSE: WDAY) started as ‘buy’ at Canaccord Genuity and as ‘outperform’ at William Blair; and Exelon Corp. (NYSE: EXC) cut to ‘hold’ at Argus.

Earnings reports since U.S. markets closed last Friday resulted in some price moves today, including these as of the last half hour of trading: American States Water Co. (NYSE: AWR) is up 3.2% at $44.89 after posting a new 52-week high of $45.75; Bridgepoint Education Inc. (NYSE: BPI) is down 4.1% at $9.69; Entergy Corp. (NYSE: ETR) is down 4.8% at $67.79; Rockwell Automation Inc. (NYSE: ROK) is up 3.1% at $77.87; Silver Wheaton Corp. (NYSE: SLW) is down 1.3% at $38.98; Southern Co. (NYSE: SO) is down 2.5% at $44.64; Sysco Corp. (NYSE: SYY) is down 1.7% at $30.80; Tesla Motors Inc. (NASDAQ: TSLA) is up 8.7% at $31.44 (more coverage here); Time Warner Cable Inc. (NYSE: TWC) is down 6.3% at $91.97 (more coverage here); Transocean Ltd. (NYSE: RIG) is up 5.3% at $48.49; and True Religion Apparel Inc. (NASDAQ: TRLG) is down 1.4% at $26.20.

After markets close today and before they open tomorrow morning we are scheduled to hear from CF Industries Holdings Inc. (NYSE: CF), Express Scripts Holding Co. (NASDAQ: ESRX), Plains All American Pipeline LP (NYSE: PAA), Walter Energy Co. (NYSE: WLT), Zillow Inc. (NASDAQ: Z), American Superconductor Corp. (NASDAQ: AMSC), AOL Inc. (NYSE: AOL), Cablevision Systems Corp. (NYSE: CVC), CVS Caremark Corp. (NYSE: CVS), Fossil Inc. (NASDAQ: FOSL), Louisiana Pacific Corp. (NYSE: LPX), and Vivus Inc. (NASDAQ: VVUS).

Some standouts from today include the following stocks:

Vringo Inc. (NYSEMKT: VRNG) is up 26.3% at $3.50. The intellectual property company got a boost when the jury in the company’s suit against Google Inc. (NASDAQ: GOOG) asked the judge a question related to appropriate damages.

Ebix Inc. (NASDAQ: EBIX) is down 12.6% at $19.59 after posting a new 52-week low of $15.26 earlier today. The software provider has been reported to be under investigation by the SEC, a report the company has denied.

Radian Group Inc. (NYSE: RDN) is down 11% at $4.79. The mortgage insurer plunged following a story at Barron’s saying the company may incur costs for claims it has already denied.

Stay tuned for Tuesday. It’s Election Day! We have noted the following events on the schedule (all times Eastern):

7:45 a.m. – ICSC-Goldman Store Sales
8:55 a.m. – Redbook
11:30 a.m. – 4-week bill auction
1:00 p.m. – 3-year note auction
3:00 p.m. – Treasury STRIPS

Don’t forget to vote!

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AMSC, AOL, AWR, BPI, CF, CVC, CVS, DD, EBIX, ESRX, ETR, EXC, FOSL, GOOG, LPX, PAA, QCOM, RDN, RIG, ROK, SLW, SO, SYY, TGT, TRLG, TSLA, TWC, VRNG, VVUS, WDAY, WLT, Z

24/7 Wall St. Closing Bell — August 30, 2012: Markets Slide Waiting for Bernanke (HUM, YGE, AET, LPX, CTXS, LTRX, CHUY, TIVO, VRA, TD, OVTI, SAI, ZUMZ, P, CIEN, FSLR)

Paul Ausick — Thu, 30 Aug 2012 20:05:12 +0000

The three major U.S. stock indexes opened lower this morning on an absence of new data from overseas and an expected drop in new claims for unemployment benefits did not occur (our coverage here). Encouraging reports on August retail sales (more coverage here) bolstering a July rise in personal consumption expenditures of 0.4% (our coverage here). But the news everyone is waiting for won’t come until tomorrow, when Fed chairman Ben Bernanke gives a speech from the Jackson Hole conference. Will the Fed commit to more easing or won’t it? Bernanke is most likely to indicate in the oblique manner of the Fed that August unemployment figures, due out next Friday, will drive the decision on easing.

The U.S. dollar index rose today, now up 0.18% at 81.696. The GSCI commodity index is up fractionally today at 668.71, with commodities prices mostly higher and corn at around $8.10/bushel. WTI crude oil finished down 0.9% today, closing at $94.62/barrel. Brent crude trades slightly higher at $112.66/barrel. Natural gas is up 2.4% today to $2.75/thousand cubic feet following the weekly storage report (more coverage here). Gold settled at $1,657.10/ounce, down 0.4% again today.

The unofficial closing bells put the DJIA down nearly 107 points to 13,000.78 (-0.81%), the NASDAQ fell more than 32 points (-1.05%) to 3,048.71, and the S&P 500 fell -0.78% or about 11 points to 1,399.50.

There were several analyst upgrades and downgrades today, including Humana Inc. (NYSE: HUM) cut to ‘neutral’ with a lowered target price of $74 at Credit Suisse; Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) cut to ‘sell’ with a target price of $1.00 at ThinkEquity; Aetna Inc. (NYSE: AET) started as ‘neutral’ with a $43 target price at Credit Suisse; Louisiana-Pacific Co. (NYSE: LPX) raised to ‘buy’ with a $16 target price at BofA; and Citrix Systems Inc. (NASDAQ: CTXS) started as ‘neutral’ at Longbow Research.

Some companies that reported earnings since markets closed last night and have share price changes as of the last half hour of trading today include Lantronix Inc. (NASDAQ: LTRX) is down 7.9% at $1.87; Chuy’s Holdings Inc. (NASDAQ: CHUY) is up 7.5% at $20.70 after posting a new 52-week high of $21.60; Tivo Inc. (NASDAQ: TIVO) is down 2.1% at $9.16; Vera Bradley Inc. (NASDAQ: VRA) is down 8.3% at $21.66; and The Toronto-Dominion Bank (NYSE: TD) is down 1.3% at $81.29.

Earnings releases scheduled before markets open tomorrow morning include Omnivision Technologies Inc. (NASDAQ: OVTI), SAIC Inc. (NYSE: SAI), and Zumiez Inc. (NASDAQ: ZUMZ).

Some standouts from today include the following stocks:

Pandora Media Inc. (NYSE: P) is up 16.1% at $11.70. The internet radio provider beat earnings expectations last night and raised guidance. More coverage here.

Ciena Corp. (NASDAQ: CIEN) is down 19.1% at $13.53. The networking coverage missed its EPS expectations and forecast a weaker quarter going forward. More coverage here.

First Solar Inc. (NASDAQ: FSLR) is down 17.3% at $20.02. The solar panel maker is ahead of schedule on a big project and will have to stop work for a while. More coverage here.

Stay tuned for Friday. Fed Chairman Ben Bernanke’s long-awaited remarks from Jackson Hole are scheduled for 10 a.m. tomorrow morning. We have noted the following events on the schedule (all times Eastern):

9:45 a.m. – Chicago PMI
9:55 a.m. – University of Michigan/Reuters consumer confidence index
10:00 a.m. – Factory orders
3:00 p.m. – Farm prices

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AET, CHUY, CIEN, CTXS, FSLR, HUM, LPX, LTRX, OVTI, P, SAI, TD, TIVO, VRA, YGE, ZUMZ

Top Analyst Upgrades & Downgrades (ACM, ALNY, BIIB, BP, COF, SNP, CTSH, EA, EPB, ERJ, F, LPX, MFC, MM, RAX, SYNC, VRTX, WYNN)

Jon C. Ogg — Tue, 08 May 2012 12:11:27 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall Street research calls this Tuesday.

AECOM Technology Corporation (NYSE: ACM) Cut to Underperform at BofA/ML.

Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) Started as Overweight at JPMorgan.

Biogen Idec Inc. (NASDAQ: BIIB) Reiterated Buy with $145 target at Argus.

BP plc (NYSE: BP) Cut to Underweight at Barclays.

Capital One Financial Corp. (NYSE: COF) Raised to Hold from Sell at Argus.

China Petroleum & Chemical (NYSE: SNP), or Sinopec, named Bear of the Day at Zacks.

Cognizant Technology Solutions (NASDAQ: CTSH) Raised to Outperform at R.W. Baird.

Electronic Arts Inc. (NASDAQ: EA) Raised to Buy at Needham.

El Paso Pipeline Partners, LP (NYSE: EPB) Started as Outperform with $38 target at Credit Suisse.

Embraer SA (NYSE: ERJ) Cut to Neutral at Citigroup.

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

Louisiana-Pacific Corporation (NYSE: LPX) Raised to Buy at Deutsche Bank.

Manulife Financial (NYSE: MFC) named Bull of the Day at Zacks.

Millennial Media Inc. (NYSE: MM) Started as Neutral at Goldman Sachs; Started as Equal-weight at Morgan Stanley; Started as Equal-weight at Barclays.

Rackspace Hosting, Inc. (NYSE: RAX) maintained Neutral with $57 target at Goldman Sachs.

Synacor Inc. (NASDAQ: SYNC) Cut to Underperform at BofA/ML.

Vertex Pharmaceuticals (NASDAQ: VRTX) Raised to Equal-weight at Morgan Stanley.

Wynn Resorts Ltd. (NASDAQ: WYNN) Maintained Outperform with $166 target at Credit Suisse.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls Tagged: ACM, ALNY, BIIB, BP, COF, CTSH, EA, EPB, ERJ, F, LPX, MFC, MM, RAX, SNP, SYNC, VRTX, WYNN

24/7 Wall St. Closing Bell (FSLR, PEP, PG, ILMN, CCL, ANV, AWR, BBEP, CDE, DISH, LPX, TSN, HFC, CHTR, DMD, HL, OMX, THC, WEN, DIS, VRTX, CTSH, BSFT)

Paul Ausick — Mon, 07 May 2012 20:08:20 +0000

The major US stock indexes opened lower this morning following a weekend of elections in Europe. A new Socialist party president in France and a still very cloudy future in Greece have left investors in a quandry. We have more coverage here on the French election and here on the election in Greece. By the last hour of trading, shares had recovered nearly all of the early losses and the three major indexes are either slightly positive or on the way to positive territory. The US dollar index rose today, now up 0.09% at 79.573. The GSCI commodity index is down about -2.3% at 653.60, with commodities mixed on the slightly stronger dollar. WTI crude oil closed down -0.6% at $97.94/barrel and Brent crude trades down -0.08% at $113.09/barrel. Gold settled down -0.4% today, at $1,639.10/ounce.

The unofficial closing bells put the DJIA down nearly 30 points to 13,008.53 (-0.23%), the NASDAQ rose less than 2 points (0.05%) to 2,957.76, and the S&P 500 rose 0.48% or less than 1 point to 1,369.58.

There were several analyst upgrades and downgrades today, including First Solar Inc. (NASDAQ: FSLR) cut to ‘neutral’ at Argus; Pepsico Inc. (NYSE: PEP) raised to ‘overweight’ at Morgan Stanley; Procter & Gamble (NYSE: PG) cut to ‘market perform’ at Wells Fargo; Illumina Inc. (NASDAQ: ILMN) raised to ‘outperform’ with a price target of $55 at Credit Suisse; and Carnival Corp. (NYSE: CCL) cut to ‘neutral’ at Goldman Sachs.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Allied Nevada Gold Corp. (AMEX: ANV) is down about -10% at $25.59 after posting a new 52-week low of $25.37 earlier today; American States Water Co. (NYSE: AWR) is up 3.6% at $37.09; Breitburn Energy Partners L.P. (NASDAQ: BBEP) is down -2.4% at $17.54; Coeur d’Alene Mines Corp. (NYSE: CDE) is down -4.1% at $18.99 after posting a new 52-week low of $18.71; Dish Network Corp. (NASDAQ: DISH) is down -0.93% at $31.02; Louisiana Pacific Corp. (NYSE: LPX) is up 5.9% at $9.49; Tyson Foods Inc. (NYSE: TSN) is up 3.4% at $18.65; and HollyFrontier Corp. (NYSE: HFC) is down -2.4% at $28.82 (more coverage here).

On Tuesday we are scheduled to get earnings from Charter Communications Inc. (NASDAQ: CHTR), Demand Media Inc. (NYSE: DMD), Hecla Mining Co. (NYSE: HL), OfficeMax Inc. (NYSE: OMX), Tenet Healthcare Corp. (NYSE: THC), The Wendy’s Co. (NYSE: WEN), and Walt Disney Co. (NYSE: DIS).

Other standouts from today include the following stocks:

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) is up about 55% at $58.05. The company’s cystic fibrosis drug study showed significant positive results. More coverage here.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH) is down more than -XX% at $XX. The IT-outsourcing firm showed good results, but guidance was weak. More coverage here.

BroadSoft Inc. (NASDAQ: BSFT) is down -17.6% at $33.68. The communications software maker posted good earnings, but followed that with soft guidance for the second quarter.

Stay tuned for Tuesday. Richmond Fed President Jeffrey Lacker and Dallas Fed President Richard Fisher are giving speeches. We have noted the following events on the schedule (all times Eastern):

7:30 a.m. – NFIB Small Business optimism index
11:30 a.m. – 4-week bill auction
1:00 p.m. – 3-year note auction

Paul Ausick

Filed under: General Tagged: ANV, AWR, BBEP, BSFT, CCL, CDE, CHTR, CTSH, DIS, DISH, DMD, FSLR, HFC, HL, ILMN, LPX, OMX, PEP, PG, THC, TSN, VRTX, WEN

24/7 Wall St. Closing Bell (LNKD, FDX, ALL, RHT, SKS, FSLR, SPWR, AES, DUK, EL, WPO, EXC, MSG, AWR, BBEP, DNDN, DISH, LPX, KID, JKS, TSN, BAGL, DLB, BODY)

Paul Ausick — Fri, 04 May 2012 20:07:31 +0000

The major US stock indexes opened lower this morning following a weak report on non-farm payrolls (our coverage here). The lack of any further data to chew over left the markets with nothing to do but worry about slowing growth. Energy stocks led the slide as crude prices continued to fall (more coverage here). The US dollar index rose today, now up 0.35% at 79.495. The GSCI commodity index is down about -1.3% at 6769.36, with commodities mixed on the gains for the dollar. WTI crude oil closed down -4.6% at $97.81/barrel, its lowest level since mid-February, and Brent crude trades down -2.48% at $113.20/barrel. Gold settled up 0.6% today, at $1,645.20/ounce.

The unofficial closing bells put the DJIA down more than 168 points to 13,038.04 (-1.28%), the NASDAQ fell nearly 68 points (-2.25%) to 2,956.34, and the S&P 500 fell -1.62% or more than 22 points to 1,369.09.

There were several analyst upgrades and downgrades today, including LinkedIn Corp. (NYSE: LNKD) target price raised to $140 at Susquehanna; FedEx Corp. (NYSE: FDX) raised to ‘strong buy’ at Raymond James; The Allstate Corp. (NYSE: ALL) raised to ‘overweight’ at Barclays; Red Hat Inc. (NYSE: RHT) started as ‘outperform’ at BMO; and Saks Inc. (NYSE: SKS) reiterated ‘buy’ and target price of $14 at Argus.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: First Solar Inc. (NASDAQ: FSLR) is down -6% at $16.98 after posting a new 52-week low of $16.80 earlier today (more solar coverage here); SunPower Corp. (NASDAQ: SPWR) is down -2.1% at $5.58; AES Corp. (NYSE: AES) is down -0.7% at $12.13 (more utilities coverage here); Duke Energy Corp. (NYSE: DUK) is up 0.9% at $21.60; Estée Lauder Companies Inc. (NYSE: EL) is down -5.8% at $60.44 (more coverage here); The Washington Post Co. (NYSE: WPO) is down -5.4% at $355.88; Exelon Corp. (NYSE: EXC) is down -0.7% at $38.54; and The Madison Square Garden Co. (NASDAQ: MSG) is up 3.7% at $37.87 after posting a new 52-week high of $38.38..

On Monday we get earnings from American States Water Co. (NYSE: AWR), Breitburn Energy Partners L.P. (NASDAQ: BBEP), Dendreon Corp. (NASDAQ: DNDN), Dish Network Corp. (NASDAQ: DISH), Louisiana Pacific Corp. (NYSE: LPX), Kid Brands Inc. (NYSE: KID), Jinkosolar Holding Co. Ltd. (NYSE: JKS), and Tyson Foods Inc. (NYSE: TSN).

Other standouts from today include the following stocks:

Einstein Noah Restaurant Group, Inc. (NASDAQ: BAGL) is up 19.9% at $16.84 after posting a new 52-week high of $17.68 earlier today. The bagel maker and restaurateur reported strong earnings and said it would begin to explore strategic options.

Dolby Laboratories Inc. (NYSE: DLB) is up 17.5% at $44.22. The company reported strong earnings and has signed a deal with Microsoft Corp. (NASDAQ: MSFT). More coverage here.

Body Central Corp. (NASDAQ: BODY) is down -47.8% at $15.11. The young women’s apparel seller reported poor earnings and forecast more of the same until at least back-to-school season.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

11:30 a.m. – 3- and 6- month bill auction
3:00 p.m. – Consumer credit report

Have a great weekend.

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: AES, ALL, AWR, BAGL, BBEP, BODY, DISH, DLB, DNDN, DUK, EL, EXC, FDX, FSLR, JKS, KID, LNKD, LPX, MSG, RHT, SKS, SPWR, TSN, WPO

Chain of Demand: Lumber, Wood Products, New Homes (WY, PCL, RYN, POPE, LPX, UFPI, BXC, BLDR, DEL)

Paul Ausick — Fri, 27 Apr 2012 12:06:31 +0000

Timber and wood products firm Weyerhaeuser Co. (NYSE: WY) reported first quarter earnings this morning, and the results were somewhat better than expected. The company posted adjusted EPS of $0.02, better than the consensus estimate of break-even. Revenues totaled $1.49 billion versus an estimate of $1.53 billion.

Weyerhaeuser and competitors Plum Creek Timber Co. Inc. (NYSE: PCL) and Rayonier Inc. (NYSE: RYN) are REITs, while smaller competitor Pope Resources LP (NASDAQ: POPE) is a limited partnership. Over the past 12 months, only Rayonier has significantly boosted its share price. Rayonier’s jump was almost entirely due to a 1-for-1.5 stock split in late July.

Wood products companies such as Louisiana-Pacific Corp. (NYSE: LPX), Universal Forest Products Inc. (NASDAQ: UFPI), BlueLinx Holdings Inc. (NYSE: BXC), Builders FirstSource Inc. (NASDAQ: BLDR), and Deltic Timber Corp. (NYSE: DEL) have performed better. These companies are more closely tied to the US homebuilding and remodeling market, which has been improving in the first quarter of this year.

But will that continue? The bigger companies like Weyerhaeuser, Plum Creek, and Rayonier depend on exports to China to keep revenues and profits up. Chinese log imports totaled $8 billion last year, and North American logs contributed 22% of China’s total imports in 2011.
The bad news is that Chinese imports fell -11% in the first three months of this year, but the losses hit New Zealand and Russia hardest. Canadian log exports to China rose 23% in the first quarter and US exports rose 2%. And those gains were due, at least in part, to lower prices for North American logs.

New home construction in the US will drive log and lumber prices. If more homes are built, US demand will rise and so will prices. The various indicators for increased homebuilding in the US are mixed, but the optimistic view that construction will increase is certainly problematic. A warm winter could have pulled some construction starts ahead into the first quarter. The same is true of remodeling projects that would have improved the first quarter performance of the wood products companies.

Weyerhaeuser, which also builds and sells houses, “anticipates a small loss from single family homebuilding operations” in the second quarter. The company’s first quarter revenue from home sales fell by about -50% sequentially. While that’s not a leading indicator for the rest of the country’s homebuilders, it could be the canary in the coal mine.

Weyerhaeuser’s shares are up 0.9% in pre-market trading this morning, at $21.06, in a 52-wekik range of $14.82-$23.91.

Paul Ausick

Filed under: Dividends & Buybacks, Earnings, Housing, REIT Tagged: BLDR, BXC, DEL, LPX, PCL, POPE, RYN, UFPI, WY

24/7 Wall St. Closing Bell (SIRI, IBM, AZN, URBN, ZOLT, YUM, MT, BP, KO, EMR, LPX, MNI, CSTR, SPF, NSU, BPAX)

Paul Ausick — Tue, 07 Feb 2012 21:06:42 +0000

US equity markets opened lower this morning, but after the first hour or so of trading, the three major indexes moved to positive territory where they remained for the rest of the day. There was talk that a deal was forthcoming on the Greek debt swap deal, but that did not materialize. Maybe tomorrow? Fed Chairman Ben Bernanke didn’t have anything new to say to the US Senate committee this morning, and today’s earnings reports didn’t impress traders much either. A late day report on a big jump in December levels of consumer credit has given the market a small jolt in the last hour of trading. Crude oil is up today, with WTI crude up sharply by 1.82% at $98.67/barrel and Brent crude up 0.23% at $116.20/barrel. Gold closed up 1.4% at $1,748.40/ounce.

The unofficial closing bells put the DJIA up more than 33 points to 12,878.43 (0.26%), the NASDAQ rose more than 2 points (0.07%) to 2,904.08, and the S&P 500 rose 0.20% or nearly 3 points to 1,347.05.

There were several analyst upgrades and downgrades today, including Sirius XM Radio Inc. (NASDAQ: SIRI) started as ‘underweight’ at Barclays; IBM Corp. (NYSE: IBM) started as ‘buy’ with a $230 target price at Sterne Agee (our coverage here); AstraZeneca (NYSE: AZN) cut to ‘underperform’ at BofA/ML; Urban Outfitters Inc. (NASDAQ: URBN) cut to ‘sell’ at Brean Murray; and Zoltek Cos. Inc. (NASDAQ: ZOLT) cut to ‘underperform’ at Needham (our coverage here).

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Yum! Brands Inc. (NYSE: YUM) is up 2.67% at $64.88 after posting a new 52-week high of $65.79 earlier today; ArcelorMittal AS (NYSE: MT) is up 3.5% at $22.19; BP plc (NYSE: BP) is down -0.41% at $46.68; Coca-Cola Co. (NYSE: KO) is up 1% at $68.71 (our coverage here); Emerson Electric Co. (NYSE: EMR) is down -2.6% at $51.99; and Louisiana-Pacific Corp. (NYSE: LPX) is down -6.5% at $8.31 (our coverage here).

Our preview of tomorrow’s earnings releases is here.

Other standouts from today include the following stocks:

The McClatchy Co. (NYSE: MNI) is up 21% at $2.71. The newspaper company reported stronger-than-expected earnings today on cost-cutting.

Coinstar Inc. (NASDAQ: CSTR) is up 16.5% at $58.90 after posting a new 52-week high of $60.81 earlier today. The video rental company will join with Verizon Communications Inc. (NYSE: VZ) to offer a streaming video service to compete with Netflix Inc. (NASDAQ: NFLX) and others. More coverage here and here.

Standard Pacific Corp. (NYSE: SPF) is up 15.8% at $4.69 after posting a new 52-week high of $4.85 earlier today. The homebuilder posted good earnings today and reported that orders are up 8% in January.

Nevsun Resources Ltd. (AMEX: NSU) is down more than -30% at $4.43. The junior gold miner issued a preliminary 2012 outlook that included a sharp drop in production and in its reserves estimates.

BioSante Pharmaceuticals Inc. (NASDAQ: BPAX) is down more than -18% at $0.86. The company is the target of a new lawsuit charging it with misrepresentation. We have more coverage of BioSante here.

Stay tuned for Wednesday. San Francisco Federal Reserve president John Williams is giving a speech. We have noted the following events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications report
10:30 a.m. – EIA weekly petroleum status report
1:00 p.m. – Treasury 10-year note auction

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: AZN, BP, BPAX, CSTR, EMR, IBM, KO, LPX, MNI, MT, NSU, SIRI, SPF, URBN, YUM, ZOLT

Top Analyst Upgrades & Downgrades (AONE, BCS, BYD, CPST, CTXS, HBC, JBL, LOW, LPX, MMYT, PCS, PLD, RAI, SPLS, SBUX, TXN)

Jon C. Ogg — Mon, 06 Jun 2011 12:07:05 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.

A123 Systems, Inc. (NASDAQ: AONE) Cut to Sector Perform at Pacific Crest.
Barclays PLC (NYSE: BCS) Started as Outperform at Credit Suisse.
Boyd Gaming Corp. (NYSE: BYD) Raised to Neutral at JPMorgan.
Capstone Turbine Corporation (NASDAQ: CPST) Started as Outperform at FBR.
Citrix Systems, Inc. (NASDAQ: CTXS) Raised to Outperform as Bull of the Day at Zacks.
HSBC Holdings plc (NYSE: HBC) Started as Neutral at Credit Suisse.
Jabil Circuit Inc. (NYSE: JBL) Reiterated Focus List Buy with $24 target at Argus.
Lowe’s Companies Inc. (NYSE: LOW) Cut to Neutral at JPMorgan.
Louisiana-Pacific Corporation (NYSE: LPX) Cut to Neutral at BofA/ML.
MakeMyTrip Limited (NASDAQ: MMYT) Raised to Outperform at Oppenheimer.
MetroPCS Communications, Inc. (NYSE: PCS) Cut to Sector Perform at RBC.
ProLogis (NYSE: PLD) Started as Neutral at Credit Suisse.
Reynolds American Inc. (NYSE: RAI) Raised to Equal-Weight at Morgan Stanley.
Staples, Inc. (NASDAQ: SPLS) Named as Bear of the Day at Zacks.
Starbucks Corporation (NASDAQ: SBUX) Raised to Outperform at BMO.
Texas Instruments Inc. (NYSE: TXN) Started as Buy at ThinkEquity.

You are invited to 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

Filed under: Analyst Calls Tagged: AONE, BCS, BYD, CPST, CTXS, HBC, JBL, LOW, LPX, MMYT, PCS, PLD, RAI, SBUX, SPLS, TXN