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Updated 27-May-11

Upgrades

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

Concho Resources

CXO

Wunderlich

Hold » Buy

$105

Babcock & Wilcox

BWC

KeyBanc Capital Mkts

Hold » Buy

$34

Sony

SNE

Maxim Group

Hold » Buy

$35

Earlier this week, Concho Resources Inc. participated at the UBS Global Oil and Gas Conference will be at the RBC Capital Markets’ Global Energy and Power Conference on Monday, June 6. The presentations will be available on Concho's website. Additionally, the UBS Global Oil and Gas Conference presentation will be webcast and can be accessed through the company website. Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The company's operations are focused in the Permian Basin of Southeast New Mexico and West Texas.

The Babcock & Wilcox Company announced Thursday that the joint venture between its subsidiary Babcock & Wilcox Power Generation Group, Inc. and India-based Thermax Ltd. has broken ground on a 699,000-square-foot, $160 million boiler manufacturing plant near Pune, India.

The joint venture formed in 2010 plans to use the facility to fabricate subcritical and supercritical boilers for customers principally in the Indian market. The facility has been designed to produce parts for up to 3,000 megawatts (MWe) of utility boiler capacity per year. Plant construction is scheduled for completion in late 2012.

Six years after taking the helm of Sony in a surprise appointment, Mr. Stringer has yet to show much more than a glimmer of a turnaround at the troubled company he inherited. On Thursday, the company, which is based in Tokyo, confirmed that the damage from Japan’s natural disasters in March - and the havoc dealt to Sony’s supply chains in their aftermath - had forced it to take tax-credit provisions that resulted in a $3.2 billion net loss for the business year just ended. The loss was Sony’s biggest deficit in 16 years, and its third in a row.

Downgrades

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

Itron

ITRI

Robert W. Baird

Neutral » Underperform

$60 » $44

Gushan Environmental Energy

GU

Ardour Capital

Accumulate » Hold

$6 » $4

Advanced Analogic Tech

AATI

Stifel Nicolaus

Buy » Hold

UIL Holdings

UIL

Argus

Buy » Hold

Itron offers electronic and smart electricity meters; gas and water meters; electricity, gas and water automated meter reading (AMR) and advanced metering infrastructure/smart meter modules; handheld, mobile and network AMR data collection technologies; AMI network technologies; electromechanical, electronic, and smart electricity meters; mechanical and ultrasonic water and heat meters; diaphragm, turbine, and rotary gas meters; one-way and two-way electricity prepayment systems, including smart key, keypad, and smart card; and two-way gas prepayment systems using a smart card. It also provides meter data management software and knowledge application solutions that provide utilities and C&I end-users with support for data collection, complex data applications, data warehouses, and analytic and visualization tools.

Gushan Environmental Energy Limited, a leading producer of biodiesel in China, announced its unaudited consolidated financial results for the first quarter of 2011. As of November 12, 2010, the ratio for Gushan's ADSs representing ordinary shares has changed from one ADS representing two ordinary shares to one ADS representing 10 ordinary shares. Gushan presents all per ADS data and number of ADSs in this announcement as if the ratio change was effective as of the beginning of the earliest period presented.

Total revenues increased by 241.7% year-to-year and by 5.5% quarter-on-quarter to RMB 246.9 million (U.S. $37.7 million). Gross profit amounted to RMB3.8 million (U.S. $0.6 million), compared to a gross loss of RMB 34.1 million for the first quarter of 2010 and a gross profit of RMB 17.9 million for the fourth quarter of 2010. Loss from operations amounted to RMB 14.5 million (U.S. $2.2 million), compared to a loss from operations of RMB 67.0 million for the first quarter of 2010 and income from operations of RMB 68.4 million for the fourth quarter of 2010.

Levi & Korsinsky is investigating the board of directors of Advanced Analogic Technologies Incorporated for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Skyworks Solutions, Inc. Under terms of the transaction, AATI shareholders will receive $3.68 in cash and 0.08725 of a share of Skyworks common stock for each share of AATI stock they own. This represents a value of $6.13 per share of AATI stock, for an approximate total transaction value of $262 million.

UIL Holdings Corporation has a market cap of $1.71B. The stock is currently 6.08% above its 20-day moving average, 10.74% above its 50-day MA, and 17.84% above its 200-day MA. Net institutional shares purchased over the current quarter is at 1.7M, which is 3.41% of its 49.83M share float. The stock is a short squeeze candidate, with a short float at 6.51% (equivalent to 7.32 days of average volume). The stock has had a good month, gaining 11.99%.

Coverage Initiated

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

Hewlett-Packard

HPQ

Ticonderoga

Neutral

Lexicon Pharma

LXRX

Needham

Buy

$3

Mercury Computer

MRCY

KeyBanc Capital Mkts

Buy

$25

HEICO

HEI

KeyBanc Capital Mkts

Hold

Cubist Pharma

CBST

Global Hunter Securities

Neutral

Pharmacyclics

PCYC

Global Hunter Securities

Buy

$13

Hewlett-Packard’s largest-ever bond sale helped push corporate debt issuance in the U.S. to $40.4 billion, above this year’s weekly average for the third consecutive period. Hewlett-Packard sold $5 billion of notes in a five-part offering.

Drug developer Lexicon Pharmaceuticals Inc.'s first-quarter loss widened on higher costs and lower revenue from partnerships, the company said Tuesday. Lexicon has several drugs in development aimed at diabetes, irritable bowel syndrome and rheumatoid arthritis. The company's partners include Bristol-Myers Squibb Co. (NYSE:BMY), Roche's Genentech, N.V. Organon and Takeda Pharmaceutical (OTCPK:TKPHF).

The company reported a net loss of $29.6 million, or 9 cents per share, compared with a loss of $26.1 million, or 13 cents per share, a year ago. The company had 140 million additional shares of stock outstanding in the most recent quarter.

Mercury Computer Systems, Inc., a provider of commercially developed ISR subsystems, announced greatly improved radar subsystem performance through two new innovations: a general purpose Graphics Processing Unit (GPGPU) product based on the Nvidia (NASDAQ:NVDA) “Fermi” architecture, and a 10 Gigabit Ethernet (10GE) standards-based real time sensor interface module.

Shares of aerospace supplier HEICO Corp. popped 11% this morning. Second-quarter earnings were the catalyst, with profits up 34% year-over-year, exceeding Wall Street estimates and leading to a bump in guidance for the year.

Shares of Cubist Pharmaceuticals Inc. rose on speculation the company may be acquired by Irish drugmaker Shire PLC. The Daily Telegraph of London first linked Shire to Cubist on Monday. Speculation about a $2 billion deal appeared to gain steam after a Shire executive resigned from Cubist's board of directors. After the market closed on Wednesday, Cubist disclosed that Dr. Sylvie Gregoire resigned from its board. Gregoire is Shire's president of human genetic therapies, and she has sat on the Cubist board since 2006. Her current term on the board was scheduled to expire in 2013. Cubist said Gregoire resigned May 19.

This week, Pharmacyclics Corporation announced that Eric Hedrick has been named interim chief medical officer. Over the last nine months Dr. Hedrick has taken over increasing clinical responsibilities and guided the design of the current clinical programs. Dr. Hedrick is a board-certified medical oncologist. He completed his fellowship in Medical Oncology and Hematology at the Memorial Sloan-Kettering Cancer Center. In addition Dr. Hedrick brings over 10 years of drug development expertise from Genentech, where he was responsible for multiple aspects of the drug development and post-marketing programs for Rituximab (Rituxan(r)) and Bevacizumab.

Coverage Reierated/Price Target Change

Company

Ticker

Brokerage Firm

Ratings Change

Price Target

rue21

RUE

FBR Capital

Mkt Perform

$26 » $32

Blue Coat

BCSI

FBR Capital

Outperform

$31 » $26

Bio-Reference Labs

BRLI

The Benchmark Company

Buy

$25 » $29

Big Lots

BIG

The Benchmark Company

Buy

$50 » $45

HHGregg

HGG

FBR Capital

Mkt Perform

$18 » $16

HJ Heinz

HNZ

Stifel Nicolaus

Outperform

$31 » $26

For fiscal 2011, rue21 is raising its full year guidance based primarily on first quarter results, and now expects diluted earnings per share to be in the range of $1.50 to $1.54 as compared to $1.21 in fiscal year 2010. This is based on 25.2 million average diluted shares expected for fiscal year 2011 as compared to 25.0 million average diluted shares in fiscal year 2010. For the second quarter, the company currently expects diluted earnings per share to be in the range of $0.30 to $0.32 as compared to $0.26 in the second quarter of fiscal year 2010. The company currently expects a low single digit comparable store sales increase in the second quarter of fiscal 2011.

Blue Coat Systems Inc.'s fiscal fourth-quarter earnings plummeted 62%, a let-down that was compounded by a disappointing forecast from the Internet networking services provider. The discouraging news released Thursday caused Blue Coat shares to drop more than 8% in after-hours trading. The company, based in Sunnyvale, Calif., earned $9 million, or 18 cents per share, in the three months ended in April. That compared with net income of $23.6 million, or 49 cents per share, at the same time last year.

Driven by a solid 25% increase in revenue, Bio-Reference posted second-quarter earnings of $0.26 per share, vs. the average analyst estimate of $0.24 per share. If your initial reaction is that a $0.02 earnings beat doesn't exactly justify a double-digit price rally, Mr. Market has already come around to your way of thinking. Since the opening spike, the shares have quickly sold off and are now up only 2.4% at the time of this writing.

Poor weather sapped sales at Big Lots during the first quarter. On Thursday, the discount chain trimmed its expectations both for the year and same-store sales. It's another bad sign for discounters, which have lured newly frugal shoppers through the doors during the recession. On Wednesday, the wholesale club operator Costco (NASDAQ:COST) warned that rising costs for everything from meat to cotton for T-shirts is becoming a problem. Big Lots shifted its product mix toward lower margin items early this year, which cut its gross margin rate during the quarter by 30 points. The company also cited rising costs for diesel fuel and freight costs.

Consumer electronics and appliances retailer HHGregg Inc. said Thursday its fiscal fourth quarter earnings soared 46%, helped by new store openings. But revenue at locations open at least 14 months tumbled. Company shares jumped 12.6%, or $1.64, to $14.60 in late morning trading. The Indianapolis company earned $14.6 million, or 36 cents per share, in the three months that ended March 31. That compares with earnings of $10 million, or 25 cents per share, in the same quarter last year. Adjusted earnings, which exclude a loss from the early retirement of some debt, were 39 cents per share.

H.J. Heinz Co.'s global expansion efforts are paying off, driving its fourth-quarter net income up 16%. But the world's biggest ketchup maker said it needs to raise prices and cut jobs to continue its profitable path. The company, based in Pittsburgh, announced Thursday that it will shed up to 1,000 jobs globally in fiscal 2012 as it closes five factories. Heinz has 37,000 workers worldwide.

The closings will include two factories in the United States, two in Europe and one in the Pacific region. It will shed approximately 800 to 1,000 positions and be left with 76 factories. Heinz did not further specify which plants would close.

Source: Upgrades, Downgrades, Initiations and Other Changes for Friday