Read Larry Connors' blog – Short Term Trading Strategies
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday's Analyst Blog:
Developers Offers a Good Yield
Developers Diversified (NYSE: DDR | Quote | Chart | News | PowerRating) is a real estate investment trust (REIT) which specializes in the acquisition, ownership, development, redevelopment, leasing, and management of shopping centers and business centers.
The company reported FFO (funds from operations) of $0.82 per share during the 2nd quarter, in line with the company guidance, but $0.12 per share below our estimates. The miss was due to lower than expected transactional income. Overall 2nd quarter results were good as the company is still increasing rents on new/renewal rents.
Microchip with Near-Term Risk
Microchip Technology, Inc. (Nasdaq: MCHP | Quote | Chart | News | PowerRating) reported record revenues of $268.2 million in Q1:FY09, but was lower than our estimate of $271 million. Adjusted EPS (excluding one-time items) came in at $0.44, in line with our estimate. Business was strong across all segments.
Microcontroller sales were up 3% quarter over quarter (q/q) and up 2% year over year (y/y). Flashbased controllers were up 3.5% q/q and 11.5% y/y. Non-GAAP gross margin came in at 61.6% from 61.5% in the prior quarter and 60.6% in the year-ago quarter. Microchip also announced a quarterly cash dividend of $0.338 on its common stock, a sequential dividend rate increase of 2.4% and up 14.6% y/y/. MCHP dividend rate is roughly 4%, one of the highest distributed in the semiconductor sector.
Liberty Tries to Cushion Downside
Liberty Global, Inc. (Nasdaq: LBTYA | Quote | Chart | News | PowerRating) is aggressively buying back shares, a move that we think will provide downside cushion to EPS and elevate the stock price for future acquisitions. In the coming years, we believe the company's earnings will continue to benefit from the triple play (Internet, cable and phone) as it signs up more customers in Europe, Japan, and Latin America.
However, in our view, Liberty's top-line and EBITDA growth will begin to decelerate in the second half of 2008, weighed down by the maturing Western European operations (37% of the company's total revenue and 46% of its operating cash flow) and soaring competition in certain markets, including Romania, Hungary, Austria, and other parts of Europe. We rate the shares a Hold.
Eclipsys Trading at a Premium
Eclipsys Corp. (Nasdaq: ECLP | Quote | Chart | News | PowerRating) reported second-quarter EPS that were in-line with our estimate on revenue that exceeded our forecast. We increased our fiscal 2008/2009 revenue estimates. The management narrowed its fiscal 2008 revenue guidance and reiterated its non-GAAP EPS guidance for the year. The company continues to execute in driving higher revenue from new and existing customers, completing successful implementations, and improving margins.
To stay competitive, ECLP introduced a clinical information solution called Sunrise Clinical Essentials in the first quarter that reduces implementation times and costs for clients and re-branded its Sunrise family of products as Sunrise Enterprise. At roughly a 1.8x P/E/G our 2009 EPS estimate, our target price moves to $25.
O2Micro with Plenty of Upside
O2Micro International, Ltd. (Nasdaq: OIIM | Quote | Chart | News | PowerRating) has a strong position in the notebook computing market and a growing position in the LCD monitor and LCD TV markets. Management has focused investments into these new vertical markets, attempting to broaden its product portfolio.
June quarter topline results met consensus estimates while the bottomline beat the consensus estimate. The LCD TV markets represent an opportunity to grow its revenue base and boost margins to the low sixties. However, the soft macro environment has delayed this. OIIM is pricing at very reasonable valuation. Consequently, we reiterate our Buy rating on OIIM.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE: Zacks.com
Zacks.com Mark Vickery Web Content Editor 312-265-9380 Visit: www.zacks.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
