Zacks.com Profit from the Pros - 6/7/07
ZACKS.COM PROFIT from the PROS
** Tactics that Work in Good and Bad Markets **
***********************************************
Today's Topics: Thursday - June 7, 2007
1) ZACKS RANK BUY STOCKS - Today we highlight four new stocks
with a short-term "Buy" or "Strong Buy" recommendation:
Aspreva Pharmaceuticals (ASPV), Sun Life Financial (SLF),
Questar Corporation (STR) and Magna Int'l (MGA). Get these
stories below.
2) BEST OF THE ZACKS $100,000 CHALLENGE - "Waldoe" wears many
hats when he plays the market. Read about this Simulator
Player's mixed style of investing, and take a look at the
Zacks Challenge Player Blog.
3) ZACKS EQUITY RESEARCH - Analysts are becoming increasingly
optimistic about the Machinery-Material Handling industry.
Read the Industry Rank Analysis and get our Bull and Bear
Stocks of the Day.
4) PROFIT TRACKS - HIGH RANK VALUE - Find true bargains
through this screening method.
5) ZacksElite.com TIMELY BUY OF THE WEEK - Priceline.com
(PCLN) recently raised its outlook for gross travel bookings.
Discover the latest forecast and check out its first-quarter
results.
***********************Advertisement***************************
Get the Best of Technical and Proven Fundamental Analysis
With Zacks Momentum Trader
Get buy alerts for stocks that are ready to explode with our
NEW Zacks Momentum Trader service. We carefully chose these
stocks by combining technical analysis with the proven Zacks
Rank. You get the best of both worlds in one product that
beats the market by over 702%. You'll find the best momentum
stocks at the right time. Learn more now.
****************************************************************
Want to view the online version of Profit from the Pros or the
archive of past issues? Go to http://at.zacks.com/?id=2337
Manage your Profit from the Pros subscription:
* Free Subscription http://at.zacks.com/?id=2338
* Change of Address http://at.zacks.com/?id=2339
* Unsubscribe http://at.zacks.com/?id=2340
==============================================
1) ZACKS RANK BUY STOCKS
==============================================
Zacks #1 Rank stocks average a 31.9% annual return. Every day
on Zacks.com we highlight four new Zacks Rank Buy stocks. Each
individual stock is chosen based on how well they match the
criteria for the four main schools of investing: Aggressive
Growth, Momentum, Growth & Income and Value.
Aggressive Growth - Aspreva Pharmaceuticals Corporation (ASPV)
Listen to the audio podcast on ASPV through Zacks' NEW Audio
Feature: http://at.zacks.com/?id=3106
Aspreva Pharmaceuticals Corporation's (ASPV) recent first-
quarter results continued the trend of solid outperformances
for the company. It has comfortably exceeded earnings
estimates in seven out of the past eight quarters, while
meeting estimates in one. Over the past month, this year's
estimates have jumped 25 cents to $3.88 per share, while next
year's numbers have soared 85 cents to $5.46 per share. The
stock is trading at a very cheap 3.7x next year's estimates.
Read the full analysis on ASPV at http://at.zacks.com/?id=3106
Growth & Income - Sun Life Financial, Inc. (SLF)
Sun Life Financial, Inc. (SLF) exceeded analysts' earnings
expectations for eight consecutive quarters by an average
margin of 11.5%. In early May the company reported record
first-quarter profits of 96 cents per share. SLF has enhanced
shareholder value through both share repurchases and dividend
payments. The company has a current and five-year average
dividend yield of 2.46%. Its return on equity tops that of the
industry average-15% compared to 10%. Read the full analysis
on SLF at http://at.zacks.com/?id=3108
Momentum - Questar Corporation (STR)
Questar Corporation (STR) continues to trend higher after
surpassing resistance in early April. The company's track
record of earnings surprises and revised guidance should
continue to support the underlying trend going forward. Read
the analysis of STR at http://at.zacks.com/?id=3109
Value - Magna International, Inc. (MGA)
Magna International, Inc. (MGA) reported first-quarter
earnings per share of $1.96 which easily surpassed the
consensus estimate of $1.33. Revenues came in at $6.4 billion-
a record for the company. Analysts have been upping their
profit forecasts for this Zacks #1 Rank stock. MGA has a
price-to-book ratio of 1.5, compared to 4.6 for the market and
2.2 for the industry. Read the full analysis on MGA at
http://at.zacks.com/?id=3110
Zacks Rank Resources
* Zacks Rank Homepage at http://at.zacks.com/?id=3104
* Zacks Momentum Trader: Discover the best Zacks #1 Rank
momentum stocks to buy now at http://at.zacks.com/?id=3665
* Zacks Rank Breakout Trader: When a stock moves quickly to a
Zacks #1 Rank, this trading service uses that turnaround to
make 55% a year. Learn more at: http://at.zacks.com/?id=3496
* Zacks Options Trader: Combine the timeliness of Zacks #1
Rank stocks with the explosive profit potential of options.
Learn more at http://at.zacks.com/?id=2689
* Zacks Wealth Management: Own all the Zacks #1 Rank stocks in
a portfolio managed by Zacks. Learn more at
http://at.zacks.com/?id=2551
************************Advertisement***************************
Invest the Easy Way with Zacks Top 10 Stocks for 2007
Discover Zacks Top 10 Stocks for 2007. Buy them, forget them,
and watch the profits build.
We pick these market-beating stocks from the most powerful
long term stock rating system we know of ...Zacks
Recommendations ... crushing the S&P 500 since 2003 with a
return of 208%. At the end of a rigorous six-step process, we
deliver 10 stocks that together best enable you to beat the
market in 2007. Learn how with Zacks Top 10 Stocks at
==============================================
2) Best of the Zacks $100,000 Challenge
==============================================
Zacks is conducting a nationwide talent search to find the
very best stock pickers. The winner gets a $100,000 dream job
with Zacks! Sign up for free to join the competition, or just
read what stocks the leading players are trading on the Zacks
Challenge Player Blogs. http://at.zacks.com/?id=3469
Best of the Zacks Challenge Player Blogs
-----------------------------------------
Here's what the leading players are saying lately:
MackTheKnife (Rank #48 with $139,729)
ANIKA'S BREAKOUT WARMS ADMIRERS' HEARTS (ANIK)
With U.S. Food and Drug Administration (FDA) action on a new
product to be used for cosmetic tissue augmentation
anticipated by many investors and traders this month, Anika
Therapeutics (ANIK) shares broke to a 52-week high price... I
believe ANIK stock continues to be fundamentally undervalued,
while it is now technically overbought...
Read More or Comment on this post:
http://at.zacks.com/?id=3478
Java J (Rank #40 with $142,195)
>> JAVA'S MARKET MUSINGS #67 <<
On Tuesday the market opened to the downside and traded lower
for most of the day until late afternoon when there was a weak
rally attempt... All three indices closed to the downside... the
indices remain above the 10 and 20 SMAs... I continue to be
skeptical of the recent up moves, and am looking for signs of
a downside reversal...
Read More or Comment on this post:
http://at.zacks.com/?id=3479
Read all the Player Blog posts at:
http://at.zacks.com/?id=3482
Top Zacks Challenge Player Interview: Waldoe
----------------------------------------------------------
Jason Heming (aka: Waldoe) said his style of investment is a
"mish mash of fundamental, momentum, and swing trading." From
a fundamental standpoint, this eclectic player is on the look
out for companies that are about to turn the corner. "Maybe
they were close to bankruptcy or had a bad run recently. So
I'm not necessarily looking for companies with great
fundamentals but rather fundamentals that have a reversing
trend," noted Jason. "Momentum plays a much bigger role in my
search of good investment candidates. Again I'm looking for
companies that have had a "bad run" but the trend has turned
upwards over the past 2 to 3 months. I also want volume to
support this trend. I want to see significant volume on up
days and lower volume on down days. I also look at the 50 and
200 day moving averages. I want the stock to have passed both
these trend lines so as to provide support if the stock breaks
down suddenly. Finally, I do look at chart patterns, but not
in great detail."
This contestant's ability to stay diverse and agile when it
comes to trading stocks has placed his Zacks $100K Challenge
portfolio among the top competing players with an overall
return of about 42% since the beginning of this year.
Some of the names that can currently be found in this
challenger's Simulator portfolio include Rhodia SA (RHA), CMGI
Inc. (CMGI), SmartPros Ltd. (PED), Charter Communications Inc.
(CHTR) and Autobytel Inc. (ABTL). Take a look at his entire
trading history by clicking here: http://at.zacks.com/?id=2515
Click here to read the whole interview with Waldoe:
http://at.zacks.com/?id=2518
Click here for more on the Zacks $100,000 Challenge:
http://at.zacks.com/?id=3469
====================================================
3) ZACKS EQUITY RESEARCH
====================================================
Handling products is not something that normally grabs
investor interest, but given some recent data, perhaps it
should.
Last week, Columbus McKinnon (CMCO) reported fourth-quarter
profits of 57 cents per share, up from an adjusted 52 cents
per share last year. CMCO, which makes hoists, cranes, lift
tables and other handling systems, experienced both sales
growth and margin expansion. The backlog was higher as well.
Two of the three covering brokerage analysts have raised their
forecasts on the stock, sending the fiscal 2008 consensus
estimate five cents higher to $2.09 per share.
This Thursday, after the close, Cascade Corporation (CAE) is
scheduled to report its fiscal first-quarter results. CAE
matched expectations last quarter, but beat expectations
during each of three previous quarters. Brokerage analysts
have also been raising their forecasts for fiscal 2008. The
current consensus estimate calls for fiscal 2008 profits to
total $4.04 per share, a positive revision of 29 cents from 60
days ago. CAE makes load handling products that are used on
lift trucks and sales of lift trucks have been strong in both
Europe and Asia - a reflection of economic growth.
More...
************************Advertisement***************************
Target 75% Profits with Zacks/Schaeffer's Options Trader
We've just combined the powerful Zacks Rank stock selection
system with Bernie Schaeffer's proven option trading
expertise. And the result is an all new, super-charged trading
service: Zacks/Schaeffer's Options Trader!
Learn more at http://at.zacks.com/?id=2675
****************************************************************
Best of Zacks Equity Research continued...
CAE and CMCO are Zacks #2 Rank stocks. Both companies are
classified in Machinery-Material Handling.
This group also contains one more company, Key Technology
(KTEC). KTEC is a Zacks #2 Rank stock, but makes automation
systems for the food industry. The company might be of
interest for two reasons. First, CEO David Camp credited the
increased focus on food safety and labor shortages in the food
industry for helping his company to increase earnings. Second,
the sole brokerage analyst who covers the stock has adjusted
his full-year profit forecast by 22 cents over the past 60
days to 90 cents per share.
________________________________________
Cummins (CMI) may seem like an unlikely global-warming play,
but the company is experiencing higher demand for what it
describes as "emissions-related products and technologies".
Specifically, filtration and exhaust treatment technologies
appear to be an area of growth for CMI. On the flip side, new
regulations in the U.S. have resulted in a decline in truck
sales this year and thereby lower demand for truck engines,
which CMI makes. Several trucking companies accelerated their
purchase plans last year before the regulations took effect.
Nonetheless, the outlook for CMI appears to be positive.
Worldwide economic growth and increased demand for portable
generators and auxiliary power units are contributing to the
bottom line. CEO Tim Solso expects CMI to earn between $6 and
$6.50 per share this year. Brokerage analysts have been
raising their forecasts on the stock, with one analyst
revising his projections within the last seven days. The
consensus earnings estimate of $6.41 per share is 14 cents
higher than a month ago and $1.09 higher than 60 days ago.
CMI is a Zacks #1 Rank stock. Because CMI is the lone company
in Engines-Internal Combustion, the group's Industry Rank
matches the company's Zacks Rank. (Industry Rank is calculated
by averaging the Zacks Rank for all companies within a group.
Groups with a smaller number of companies may have more
volatile Industry Ranks and may be more likely to appear near
the very top or very bottom of the Industry Rank List.)
To read the complete Industry Rank Analysis, click
http://at.zacks.com/?id=2344
Charles Rotblut, CFA is the senior market analyst for Zacks
Equity Research.
****************************************************************
MORE FROM ZACKS EQUITY RESEARCH...
Analyst Blog
Real-time market insights from Zacks Equity Research Analysts.
Stocks featured recently include Equifax (EFX), Onyx
Pharmaceuticals (ONXX), Newfield Exploration Co. (NFX) and
Allied Irish Bank (AIG). See their latest posts at
http://at.zacks.com/?id=2585
BULL OF THE DAY
Harris Corp. (HRS) - Strong Pipeline.
Full Zacks research report at http://at.zacks.com/?id=2341
BEAR OF THE DAY
Supertex (SUPX) - Lowering Expectations.
Full Zacks research report at http://at.zacks.com/?id=2342
ZACKS ANALYST INTERVIEW
Decent Earnings Season Report Card
We stand on the cusp of another double-digit quarter of median
earnings growth, which would make it the 19th straight:
http://at.zacks.com/?id=2693
EARNINGS TRENDS
Listen to the audio podcast of Earnings Trends through Zacks'
NEW Audio Feature: http://at.zacks.com/?id=2343
Revisions Ratios Tumble
The ratio of estimate increases to cuts fell sharply for both
this year and next:
http://at.zacks.com/?id=2343
Rating Upgrades - New! (Premium)
Find out which stocks have been recently upgraded by Zacks
Equity Research:
http://at.zacks.com/?id=2997
Zacks Equity Research Buys - New! (Premium)
Read the reports on all of the stocks on the
Zacks Equity Research Buy List:
http://at.zacks.com/?id=2998
****************************************************************
Learn More about Zacks Equity Research at
http://at.zacks.com/?id=2268
Full access to Zacks Equity Research is now available on
Zacks.com:
http://at.zacks.com/?id=2999
Zacks Wealth Management: Own all the Zacks #1 Rank stocks in a
portfolio managed by Zacks. Learn more at
http://at.zacks.com/?id=2691
==============================================
4) PROFIT TRACKS
==============================================
Zacks.com is proud to share with you some of the best trading
strategies that truly allow you to Profit from the Pros. Today
we highlight...
Profit Tracks: High Rank Value
Two of the most commonly accepted measures of a value stock
are a price-to-earnings (P/E) multiple of 15.0 and a price-to-
book (P/B) multiple of 3.0. Although many studies have shown
performance advantages to investing in value stocks, not all
value stocks are actually bargains. A value a stock is only a
good buy if earnings are expected to improve in the future.
High Rank Value is a strategy designed to find the true
bargains among value stocks. By requiring a Zacks Rank of #1
("Strong Buy") or #2 ("Buy"), this strategy restricts the pool
of value stocks to only those with positive revisions in
earnings estimates. In other words, profits are expected to
improve in the future at a faster pace than originally
anticipated.
Here are four stocks that make the grade for the High Rank
Value Profit Track:
Asbury Automotive Group, Inc. (ABG), which recently declared a
quarterly dividend of 20 cents per share, reported first-
quarter results in late April. Adjusted income from continuing
operations of 45 cents topped the consensus estimate by 7% and
exceed the year-prior total of 41 cents. Asbury Automotive
offers a price-to-earnings (P/E) multiple is 13.75 and a price-
to-book (P/B) multiple of 1.60. Continue your research on ABG
at http://at.zacks.com/?id=2354
Books-A-Million, Inc. (BAMM) recently declared a special one-
time dividend of $3.00 per share. In late May, the company
posted first-quarter earnings of 13 cents per share, eclipsing
the year-ago result of nine cents and surpassing the consensus
estimate by 8%. Net sales increased 2.1% on a year-over-year
basis. BAMM has a price-to-earnings (P/E) multiple is 14.22
and its price-to-book (P/B) multiple is 1.75. Continue your
research on BAMM at http://at.zacks.com/?id=2355
Harleysville Group, Inc. (HGIC) sports a price-to-earnings
(P/E) multiple of 11.08 and a price-to-book (P/B) multiple of
1.31. The company recently declared a regular quarterly
dividend of 19 cents per share, which was its 84th consecutive
quarterly dividend since the company went public in 1986. In
late April, HGIC released first-quarter earnings of 70 cents
per share, outpacing the consensus estimate by a penny and
exceeding the year-ago result. Continue your research on HGIC
at http://at.zacks.com/?id=2356
Innkeepers USA Trust (KPA) announced first-quarter adjusted
funds from operations (FFO) of 30 cents per share in early
May. The result was ahead of the consensus estimate by a penny
and improved on the year-ago total of 27 cents. The company
mentioned that it continued to see healthy margin growth
despite high utility and insurance costs. KPA satisfies the
criteria for this Profit Track as evidenced by its price-to-
earnings (P/E) multiple of 13.77 and a price-to-book (P/B)
multiple of 2.14. Continue your research on KPA at
http://at.zacks.com/?id=2357
To see the track details for this winning screen, go to
http://at.zacks.com/?id=2358
All the Profit Track strategies were created and backtested
using the Research Wizard software from Zacks Investment
Research. If you like this screening strategy, but want to
narrow down the list of stocks and even improve the
performance, then you should start a free trial to this
powerful stock picking tool. Learn more about the Research
Wizard free trial offer and our new special report "Top 10
Stock Screening Strategies" at http://at.zacks.com/?id=2359
****************************************************************
SCREEN OF THE WEEK
Filtering the Zacks Rank
Kevin Matras outlines a strategy to trade the Zacks Rank in a
very practical manner for almost anyone's portfolio:
http://at.zacks.com/?id=2360
==============================================
5) ZacksElite.com TIMELY BUY of the WEEK
==============================================
Here you'll discover a Zacks #1 Rank stock hand selected by
Ben Zacks to outperform the market over the next 30 to 90
days. This week's Timely Buy is...
Priceline.com (PCLN)
------------------------------------------------
Priceline.com (PCLN) recently raised its outlook for gross
travel bookings. Discover the latest forecast and check out
its first-quarter results.
Priceline.com (PCLN) is a travel service that offers leisure
airline tickets, hotel rooms, rental cars, vacation packages,
and cruises. The company operates as priceline.com,
rentalcars.com, breezenet.com, and lowestfares.com.
The company's Name Your Own Price service (also called its
opaque business) offers customers a unique value proposition
by allowing them to name their own price for online
products/services. In these transactions, Priceline.com
determines the price it will accept and has discretion in
supplier selection. PCLN's value-add to suppliers is that
Priceline.com provides a brand preserving sales service that
enables them to sell excess inventory without harming their
existing retail pricing structure.
Priceline.com also has a more traditional travel sales model
that allows customers to choose specific suppliers and
inventories. Under the retail model, Priceline.com acts as an
agent for the airline, hotel or rental car company and the
supplier is the merchant of record. The company was founded in
1997 and went public in March 1999.
The company recently increased the high end of its guidance
for 2007 gross travel bookings to $4.25 billion. PCLN's
previous full-year 2007 outlook stood at $4.1 billion to $4.2
billion. Priceline.com also reiterated its full-year 2007 pro
forma net income projection of $2.90 to $3.10 per share.
In early May, Priceline.com release results for the first
quarter. Gross travel bookings, which refers to the total
dollar value, inclusive of all taxes and fees, of all travel
services purchased by consumers, moved up 33.7% on a year-over-
year basis. GAAP revenues were up 24.6% from the previous
year's first quarter. Pro forma net income also improved year-
over-year and topped the consensus estimate.
"First quarter pro forma earnings growth exceeded our
expectations in both the United States and Europe," said
priceline.com President and Chief Executive Officer Jeffery H.
Boyd. "In Europe, Booking.com benefited from 91% growth in
gross travel bookings as we continued to build the business
across Europe. In the United States, pro forma earnings growth
was driven by 8% growth in merchant gross travel bookings and
greater efficiencies in marketing, which cost gross travel
bookings, but significantly decreased acquisition costs."
The author of this article owns shares of Priceline.com.
****************************************************************
About Zacks Timely Buy of the Week
Each week we highlight one stock from the ZacksElite.com
Timely Buys list. This exclusive portfolio selected by Ben
Zacks has beaten the S&P 500 every single year since inception
in 1996. $10,000 invested in this strategy since inception
would now be worth $115,319 versus only $23,597 invested in
the S&P 500.
Click here to learn more about ZacksElite.com and the free
trial offer http://at.zacks.com/?id=2346
****************************************************************
OTHER TOOLS FROM ZACKS
At the heart of Zacks Investment Research is the Zacks Rank
investment philosophy that continues to vastly outperform the
market. Our Zacks #1 Rank (Strong Buy) List has generated the
following results for investors:
* +31.9% average annual return since 1988 versus +11.9% for
S&P 500
* +43.8% total return from 2000 to 2002 - the worst bear
market in over 60 years.
* +23.7% in 2006 and +17.8% in 2005
And just as importantly, the Zacks #5 Rank stocks (Strong
Sell) list has alerted investors as to which stocks to dump
from their portfolios to avoid unnecessary losses.
FREE PORTFOLIO TRACKER
Do you believe that these events affect stock prices?
Do you believe that these events affect stock prices?
Broker Recommendation changes
Earnings Estimate revisions
Earnings Surprises
If you answered yes, then how are you staying on top of these
changes for your stocks? If you are one of the 55,000
investors who wake up every morning to the Daily Portfolio
Updates emails from Zacks.com, then you are all set. If not,
then sign up now to get this vital information sent to you
daily to help take definitive action to improve your
portfolio's performance. Did we mention it's free? Get started
now by going to http://at.zacks.com/?id=2352
---------------------------------------------------------
We hope you enjoyed this issue of "Zacks.com Profit from the
Pros" and we look forward to visiting with you again tomorrow.
REFER-A-FRIEND
If you enjoy this e-mail newsletter, then please pass it along
to a friend. Simply forward them the link below to sign up for
their own free subscription. If you're reading a forwarded
copy, sign up for your own, so you get this wealth of
information every week. Just click on the link below. THANKS!
http://at.zacks.com/?id=2338
Regards and Happy Investing,
Charles Rotblut, CFA
Senior Market Analyst
Zacks.com
p.s. What is the mission for Zacks Profit from the Pros?
To find out how we will help you become a more
successful investor, visit http://at.zacks.com/?id=2353
Zacks Rank performance is the total return (price changes +
dividends) of equal weighted portfolios, consisting of those
stocks with the indicated Zacks Rank, assuming zero
transaction costs. These returns are not the result of a
backtest; these are actual returns since 1988. The stocks in
the Zacks Rank portfolios were available to Zacks clients
before the beginning of each month (monthly rebalancing).
Performance results from 1988 through September 2006 are based
on a subset of all Zacks Rank stocks that excludes stocks
covered by only one analyst and ADR's.
The S&P 500 Index is a well-known, unmanaged index of the
prices of 500 large-company common stocks, mainly blue-chip
stocks, selected by Standard & Poor's. The S&P 500 Index
assumes reinvestment of dividends but does not reflect
advisory fees. An investor cannot invest directly in an index.
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.
To contact us by mail:
Zacks Investment Research
Attn: Profit from the Pros
111 N. Canal St., Suite 1101
Chicago, IL 60606
To unsubscribe from receiving "Zacks.com Profit from the Pros"
e-mail newsletter, click here http://at.zacks.com/?id=2340
----------------------------------------
You are registered to receive this "Profit from the Pros" e-mail
newsletter at my.dear.email@gmail.com
posted by My dear mail at 3:54 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home