CHICAGO, Jan. 10, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: j2 Global Communications (Nasdaq:
JCOM) as the Bull of the Day and American Superconductor
Corporation (Nasdaq: AMSC) as the Bear of the Day. In
addition, Zacks Equity Research provides analysis on
McDonald (NYSE: MCD), Abercrombie &
Fitch (NYSE: ANF) and Ford Motor (NYSE:
F).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
We upgrade our recommendation for j2 Global
Communications (Nasdaq: JCOM) to Outperform. According to
our view, the company's strong financial position and diversified
product pipeline, in synergy with the long-term growth prospects
for outsourced value-added messaging services, will drive valuation
levels higher in the near future.
Subscriber usage revenue continues to beat market expectations.
This is an important parameter as credit-sensitive customers
constitute a majority of j2 Global's sales. Exploration of new
opportunities for both digital fax and voice services, through
continuous acquisitions, facilitated the company to solidify its
market position within the industry.
The company achieved huge reduction in cancel rate in the last
quarter. Acquisition of Protus IP Solutions has significantly
boosted j2 Global's paid Dial-in-Demand numbers. Recently, the
company has raised its future financial outlook.
Bear of the Day:
American Superconductor Corporation (Nasdaq: AMSC)
is a technology company operating in the two primary markets of
wind energy and smart grid infrastructure technology. American
Semiconductor's growth potential is based on its solid backlog of
$956 million, its strong Chinese
exposure, and growing international operations.
However, we believe the above positives are already factored in
the current valuation of the company. Also the company's excessive
dependence on Sinovel, headwinds in its Superconductor segment, and
intense competition in the power system business looms large over
the valuation of the company.
Consequently, we downgrade our recommendation to Underperform
until the bulge in valuation of the company corrects itself. Our
target price of $26.00 represents
23.4X 2011 EPS.
Latest Posts on the Zacks Analyst Blog:
Details on Employment Report
Teens, regardless of gender have had a very hard time of it in
this recession. Just go to
a McDonald's (NYSE: MCD) and you will see
this for yourself. Normally the blemishes you see on the cashier's
face are from acne, not age spots, as is the case now. In December,
the teen unemployment rate rose to 25.4% from 24.5% in November,
but it is down from 26.8% a year ago.
The deterioration from last month is worse than it appears, and
the improvement from last year is an illusion due to a falling
participation rate, which dropped to 34.3% from 34.6% in November,
and 35.8% a year ago. The percentage of teens that actually have a
job was just 25.6%, down from 26.2% in November and a year ago.
While for the most part the earnings from teen jobs tend to go
towards clothes from Abercrombie &
Fitch (NYSE: ANF) and other teen clothing stores,
for many it is a significant part of paying for college. Also, when
teens work they learn important job skills, such as the importance
of actually showing up, and doing so on time. The extremely low
levels of teens working is not a good sign for the future.
Ford's China Arm Raises Funds
Chongqing Changan Automobile, a joint venture partner
of Ford Motor (NYSE: F) in China, has revealed that it will raise up to
4 billion yuan ($600 million) by selling shares at 9.74 yuan
each. The Chinese automaker will use the net proceeds from sale to
expand production capacity.
Presently, Ford owns a 35% stake in Changan Ford Mazda, with
Changan holding 50% and Mazda the remaining 15%. It is reported
that Ford and Mazda will each form a separate 50:50 JV with
Chongqing Changan Automobile Co. However, representatives of the
three companies denied of having any plans of dissolving
the JV.
Ford's sales in China grew 40%
in 2010 with higher sales of Focus compact and Fiesta
subcompacts. Changan Ford sold 403,283 vehicles, an increase of 34%
from the last year. Meanwhile, Ford's commercial vehicle venture in
China, Jiangling Motors Corp.,
reported an impressive 56% rise in sales to 178,999 units.
The Chinese auto industry being the apple of Beijing's eye was further boosted by
government incentives (which may not be continued this
year) that coaxed car owners to shift to more
environment-friendly and fuel-efficient cars and minivans. J.D.
Power and Associates has predicted sales in China to grow by 10.5% for 2011.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
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the markets over the next 3-6 months.
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