(TDW) - Tidewater, Inc - PEG ratio currently sits at a miniscule 0.26

Tidewater, Inc. (TDW), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for eight consecutive quarters by an average margin of 8.8%. Consensus earnings estimates have been trending higher for TDW. Earnings per share are projected to grow 36% over the next 3-5 years. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at a miniscule 0.26. Full Analysis Tidewater, Inc. provides offshore supply vessels and marine support services to the global offshore energy industry. The company’s vessels can be found in virtually every area of the world where there is significant oil and gas exploration, development or production. TDW topped the Street’s earnings estimate for eight consecutive quarters by an average margin of 8.8%. On Oct 25, the company posted second-quarter fiscal 2007 earnings per share of $1.55. With analysts projecting $1.34, TDW surprised to the upside by an impressive 15.7%. Compared to profits of 68 cents per share in the prior-year period, the result equated to a 127.9% year-over-year improvement. Revenues increased 34.1% to $274.0 million from $204.4 million in the second quarter of fiscal 2006. The company increased revenues for the past three years, while expanding gross margins and growing profits for two years running. Analysts covering the stock have been upping their earnings estimates. Consensus estimates for this quarter and next have risen 5.0% and 4.4%, respectively, over the past 60 days. Profit forecasts for this year and next jumped 7.2% and 5.2%, respectively, over the same time period. Earnings per share are projected to grow 36% over the next 3-5 years. The industry is expected to grow at a 10% clip. On Nov 16, the Board of Directors declared a quarterly cash dividend of 15 cents per common share of stock. TDW has a current dividend yield of 1.1% and a five-year average dividend yield of 1.7%. TDW is currently trading at a valuation of 10.7x trailing 12-month earnings and at 9.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.8x trailing 12-month earnings and at 16.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at a miniscule 0.26. TDW’s return on equity of 17% betters the industry average of 16%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(CSL) - Carlisle Companies Inc - Consensus estimates for 2006 and 2007 up in the past 60 days

Carlisle Companies Incorporated (CSL) exceeded analysts’ earnings expectations in 14 out of the past 15 quarters by an average margin of 12.2%. After posting solid results for the third quarter, the company upped its full-year earnings per share guidance. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.7%. Full Analysis Carlisle Companies Incorporated is a diversified global manufacturing company that operates in three segments: construction materials, industrial components and diversified components. The company's diverse product lines serve the construction materials, commercial roofing, specialty tire and wheel, power transmission, heavy-duty brake and friction, heavy-haul truck trailer, foodservice and data transmission industries. CSL beat analysts’ earnings expectations in 14 out of the past 15 quarters by an average margin of 12.2%. On Oct 24, the company beat the Street’s third-quarter estimate by a penny when it posted profits of $1.39 per share. Compared to the prior-year period, earnings were up 20.9%. Revenues jumped 18.9% to $648.4 million from $545.4 million in the third quarter of 2005. For the first nine months of the year, profits came in at $135.8 million compared to $82.6 million for the first nine months of last year. Revenues experienced a 17.4% leap to $1.96 billion from $1.67 billion. Citing continuing strength in many of its end markets, CSL raised its full-year earnings per share guidance. The company now expects profits between $5.35 and $5.50 per share, versus its previous outlook which called for profits between $5.25 and $5.45 per share. The consensus earnings estimate for this year currently resides at $5.45, up two cents from the consensus of 60 days earlier. Profit forecasts for next year have risen four cents to $6.13 over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. On Nov 1, the Board of Directors declared a regular quarterly cash dividend of 27 cents per share. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.7%. CSL is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(ACLI) - American Commercial Lines, Inc - exceeded earnings estimates in four straight quarters, with three of them posting double-digit surprises

ACLI has exceeded earnings estimates in four straight quarters, with three of them posting double-digit surprises. Over the past 60 days, this year's estimates have jumped 30 cents to $2.75 per share, while next year's have risen 25 cents to $3.69 per share. The stocks P/E ratio of 18x next year's estimates is well below the company's long-term growth rate of 31.8%. Full Analysis American Commercial Lines, Inc. (ACLI) operates as a marine transportation and service company in the United States. The company operates in two segments, Transportation and Manufacturing. The company also provides third party logistic, as well as container transportation services between Chicago and New Orleans, through its joint venture with MBLX, Inc. In addition, it offers fleeting, shifting, cleaning, and repair services for barges and towboats of third-party customers, as well as operates cargo transfer facility terminals between various modes of transportation. As of December 31, 2005, the company operated 3,174 barges, including approximately 2,441 covered dry cargo barges, 362 open dry cargo barges, and 371 liquid cargo tank barges in its domestic fleet; 120 dry cargo barges and 7 towboats in Venezuela; and 6 barges and 1 towboat in the Dominican Republic. ACLI reported excellent third-quarter earnings and the shares were rewarded by investors. The company said quarterly earnings improved to $28.4 million, or 80 cents per share, from $3.5 million, or 15 cents per share, during the same period last year. Revenue grew 59% to $266.6 million from $167.3 million during the same period a year ago. Commenting on the results, Mark R. Holden, President and Chief Executive Officer, stated: "We are very pleased with our results of operations. Our results for the first nine months of this year exceed the previous peak for any full year in the Company's history. Industry fundamentals continue to be very strong. We are pleased with our progress to date on several fronts. The expected sale of our Venezuelan operations will allow us to focus on our core businesses and will allow us to further reduce indebtedness. We have made significant progress in reconfiguring our shipyard's footprint and process- flow to allow for more efficient and safer operations, including the covering of the primary barge production line. While we are pleased with our performance to date, we continue to take measured steps we believe will allow realization of our existing business potential." ACLI has exceeded earnings estimates in four straight quarters, with three of them posting double-digit surprises. Over the past 60 days, this year's estimates have jumped 30 cents to $2.75 per share, while next year's have risen 25 cents to $3.69 per share. The stocks P/E ratio of 18x next year's estimates is well below the company's long-term growth rate of 31.8%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(CPSS) - Consumer Portfolio Services, Inc - beat the consensus estimate of eight cents by a whopping 125.0%

Consumer Portfolio Services, Inc. (CPSS), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for five consecutive quarters by an average margin of 154.0%. Earnings per share are projected to grow 15.0% over the next 3-5 years. Consensus estimates for both this year and next have risen over the past two months. The company has a price-to-book ratio of 1.7, compared to 4.9 for the market. Its PEG ratio currently sits at 0.92. Full Analysis Consumer Portfolio Services, Inc. is a specialty finance company that provides indirect automobile financing to individual borrowers with past credit problems, low incomes or limited credit histories. The company purchases retail installment sales contracts primarily from factory franchised automobile dealers. CPSS currently purchases contracts in 47 states from approximately 7,000 dealers. When CPSS exceeds analysts’ earnings expectations, it does so by a considerable margin. The company topped the Street’s estimate for the past five quarters by an average margin of 154.0%. In four out of the five aforementioned quarters, CPSS surprised by a triple-digit percentage. On Oct 18, CPSS posted third-quarter profits of $4.3 million, or 18 cents per share, compared to $1.4 million, or six cents per share in the prior-year period. The result beat the consensus estimate of eight cents by a whopping 125.0%. Revenues ballooned 49.2% to $73.7 million from $49.4 million for the third quarter of 2005. New contract purchases jumped 24.1% to $254.4 million. President and CEO Charles E. Bradley, Jr. stated, “This was our sixth straight quarter of profitability, with each quarter showing sequential improvement.” For the first nine months of the year, profits came in at $8.7 million, versus $1.7 million for the first nine months of 2005. Revenues soared 43.2% to $199.0 million from $139.0 million. New contract purchases rose 54.8% to $777.7 million. The consensus estimate for this year has risen 31.4% to 46 cents over the past 60 days. Profit forecasts for next year experienced an 8.3% leap to 52 cents over the same period of time. Earnings per share are projected to grow 15.0% over the next 3-5 years. CPSS is currently trading at a valuation of 14.8x trailing 12-month earnings and at 13.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.8x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7, compared to 4.9 for the market. Its PEG ratio currently sits at 0.92. CPSS’s return on equity of 13% is in line with the industry average. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(MAN) - Manpower, Inc - Board authorized an 18.5% increase in its semi-annual dividend

Manpower, Inc. (MAN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 13.5%. Consensus estimates have been on the rise for this quarter as well as for the full year. On Nov 1, the Board of Directors authorized an 18.5% increase in its semi-annual dividend to 32 cents per share. The company’s return on equity of 14% betters the industry average of 11%. Full Analysis Manpower, Inc. offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. The company has 4,400 offices in 73 countries and territories. MAN operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. MAN exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 13.5%. Furthermore, the company beat the Street’s estimate in 12 out of the past 14 quarters. In the two quarters in which it missed the consensus estimate, it did so by only a penny. On Oct 17, MAN reported third-quarter earnings per share of $1.16, which marked a 33.3% year-over-year improvement when compared to the 87 cents earned in the prior-year period. It also represented a 12.6% positive surprise with analysts calling for $1.03. Revenues increased 12.1% to $4.64 billion from $4.14 billion last year. Chairman and CEO Jeffrey A. Joerres stated, “The Manpower team is hitting full stride when it comes to executing. Revenue continues to be stable throughout many of the major geographies.” For the first nine months of the year, profits came in at $233.6 million, up 36.6% when compared to the $171.0 million reported for the first nine months of 2005. Revenues experienced an 8.8% leap to $13.01 billion from $11.96 billion. MAN increased revenues for the past four years and expanded gross margins and grew profits for three years running. Consensus estimates have been on the rise for this quarter as well as for the full year. Profit forecasts for this quarter have risen 12.4% to $1.18 over the past 60 days. Analysts upped their estimates by 7.2% to $3.71 for this year over the same period of time. On Nov 1, the Board of Directors took two measures in an effort to enhance shareholder value. The Board authorized an 18.5% increase in its semi-annual dividend to 32 cents per share from 27 cents per share. The company has a current dividend yield of 0.89% and a five-year average dividend yield of 0.67%. A share repurchase program was also approved in which MAN can purchase up to five million shares of its common stock. The company’s return on equity of 14% betters the industry average of 11%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(MTW) - The Manitowoc Company, Inc - year-over-year growth surpassing 100% in each of the past four quarters

The company has exceeded earnings estimates in seven straight quarters, with year-over-year growth surpassing 100% in each of the past four. Over the past two months, this year's estimates have increased 14 cents to $2.76 per share. Next year's numbers have made an even more impressive jump of 49 cents. Full Analysis The Manitowoc Company, Inc. (MTW) engages in the manufacture and sale of cranes and related products, foodservice equipment, and marine in the United States and internationally. It offers engineered lift solutions and lifting equipment, as well as designs, manufactures, markets, and supports a line of crawler cranes, mobile telescopic cranes, tower cranes, and boom trucks. The company’s crane products are used in various applications, including energy, petrochemical and industrial projects, infrastructure development, such as road, bridge and airport construction, commercial and high-rise residential construction, and mining and dredging. In late November, the stock hit a new 52-week high after the company issued 2007 guidance ahead of Wall Street expectations. Manitowoc said it expects to post a 2007 profit of $3.75 to $4 per share, beating the average analyst predictions of $3.65 per share. The company also said at the meeting in New York that its cranes segment could generate greater than 20% growth in 2007, with an operating margin exceeding 13%. In late October, MTW reported that third-quarter profits nearly tripled to 82 cents per share, nine cents ahead of estimates. Revenue grew to $779 million from $564.9 million in the year-ago period. Based on the third-quarter results, Manitowoc boosted its 2006 earnings guidance to $2.53 to $2.58 per share. Excluding special items, the company expects to earn $2.70 to $2.75 per share for the year. "Because of The Manitowoc Company's global leadership in the lifting industry, the company again delivered strong financial performance to its shareholders," said Terry D. Growcock, Manitowoc's chairman and chief executive officer. "Third-quarter operating earnings from Manitowoc's Crane segment increased more than 150 percent compared to the third quarter of 2005 as we benefited from robust demand, high capacity utilization, and excellent factory productivity." The company has exceeded earnings estimates in seven straight quarters, with year-over-year growth surpassing 100% in each of the past four. Over the past two months, this year's estimates have increased 14 cents to $2.76 per share. Next year's numbers have made an even more impressive jump of 49 cents. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(GBX) - The Greenbrier Co - exceeded earnings expectations in five of the recent seven quarters by an average 18.8%

The Greenbrier Companies, Inc. (GBX) recently reported record profits for fiscal 2006. Consensus estimates for this year and next have shot upward over the past 60 days. Earnings per share are projected to grow 15.2% over the next 3-5 years. The company has a price-to-book ratio of 2.7, compared to 4.9 for the market. GBX’s return on equity betters that of the industry average—19% compared to 14%. Full Analysis The Greenbrier Companies, Inc. is an international leading supplier of transportation equipment and services to the railroad industry. The company builds, leases, repairs and refurbishes freight railcars for a range of customers in North America. GBX also manufactures and refurbishes freight wagons in the European market. Furthermore, the company is a leading supplier of ocean-going barges for the American maritime industry. GBX exceeded analysts’ earnings expectations in five out of the past seven quarters by an average margin of 18.8%. In four out of the five aforementioned quarters, the company surprised by a double-digit percentage. On Oct 31, GBX reported fiscal 2006 profits of $39.6 million, which amounted to a new record for the company. This marked a 32.9% improvement when compared to the $29.8 million earned in fiscal 2005. Revenues in the company’s manufacturing segment was down, however, its leasing segment and services unit experienced growth when compared to last year. President and CEO William A. Furman stated, “Fiscal 2006 was another very successful year for the company, with our second consecutive year of record earnings and numerous strategic accomplishments. Over the past year, we have taken several steps to bolster our growth, increase our profitability and competitive positioning, and diversify the business.” Consensus estimates for this year and next have shot upward over the past 60 days. Profit forecasts for this year currently sit at $3.48, which represent a 16.8% jump over the past two months. Estimates for next year have risen by an even larger magnitude—23.7% to $4.13 over the same period of time. Earnings per share are projected to grow 15.2% over the next 3-5 years. The Board of Directors declared a quarterly cash dividend of eight cents per share on Oct 31. The company has a current dividend yield of 0.87% and a five-year average dividend yield of 1.0%. On Nov 7, GBX finalized its $227.5 million acquisition of Meridian Rail Holdings Corp, a leading supplier of wheel maintenance services to the North American freight car industry. The purchase expands its wheel repair shops to 10, while its repair refurbishment and replacement parts facilities now number 20 across North America. GBX is currently trading at a valuation of 15.1x trailing 12-month earnings and at 10.6x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.8x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.7, compared to 4.9 for the market. GBX’s return on equity betters that of the industry average—19% compared to 14%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(CBI) - Chicago Bridge & Iron Co - For the first nine months of the year, revenues experienced a 42.4% leap

Chicago Bridge & Iron Company N.V. (CBI) recently raised its full-year 2006 guidance for earnings and revenues. Consensus earnings estimates have been on the rise for both this year and next. Earnings per share are projected to grow 21% over the next 3-5 years for this Zacks #1 Rank stock. The company’s return on equity, a common measure of profitability, easily surpasses the industry average—18% compared to 12%. Full Analysis Chicago Bridge & Iron Company N.V. is one of the world's leading engineering, procurement and construction companies. The company specializes in lump-sum, turnkey projects for customers that produce, process, store and distribute the world’s natural resources. CBI serves the oil and gas, petrochemical and chemical, power, water and wastewater and metals and mining industries. On Nov 8, CBI reported third-quarter profits of $32.4 million, or 33 cents per share. With analysts calling for 28 cents per share, the company surprised by a solid 17.9%. CBI posted a net loss of $31.9 million, or 33 cents per share in the prior-year period. Revenues soared 55.1% to $861.0 million from $555.3 million in the third quarter of 2005. For the first nine months of the year, revenues experienced a 42.4% leap to $2.25 billion from $1.58 billion for the first nine months of 2005. The company increased revenues for the past five years. Profits came in at $78.4 million year to date, compared to a loss of $1.2 million for the same period last year. CBI raised its full-year 2006 guidance for earnings and revenues. The company now expects earnings per share between $1.06 and $1.11 and revenues coming in between $3.0 billion and $3.2 billion. CBI’s prior outlook called for profits between 95 cents and $1 per share on revenues between $2.6 billion and $2.9 billion. The consensus earnings estimate for this year experienced a six-cent jump to $1.11 over the past 60 days. Profit forecasts for next year have risen five cents to $1.39 over the same period of time. Earnings per share are projected to grow 21% over the next 3-5 years. The industry is expected to grow at a 13% clip. On Nov 6, CBI announced that it won a $400 million contract for work in the Middle East. The project will consist of engineering, procurement, fabrication and construction of two storage facilities, about 75 miles of piping systems and associated mechanical, civil, building, electrical and instrumentation works. On Dec 8, the Board of Directors declared three-cent interim common stock dividend. The dividend is payable on Dec 29 to shareholders of record as of Dec 19. CBI is currently yielding 0.40%, with a five-year average dividend yield of 0.50%. The company’s return on equity, a common measure of profitability, easily surpasses the industry average—18% compared to 12%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(DWSN) - Dawson Geophysical Co - Over the past month, this year's numbers have increased 16 cents

The company has beaten earnings estimates in two out of the past three quarters by an average margin of 22%. Year-over-year growth has accelerated meaningfully as well. Both analysts have raised their numbers for this year. Over the past month, this year's numbers have increased 16 cents to $2.71 per share. Full Analysis Dawson Geophysical Company (DWSN) provides onshore seismic data acquisition services in the United States. The company acquires and processes two dimensional (2D), three dimensional (3D), and multicomponent seismic data for oil and gas companies and independent oil and gas operators, as well as providers of multiclient data libraries. Dawson’s 2D method involves the collection of seismic data in a linear fashion thus generating a single plane of subsurface seismic data. The 3D method produces seismic data, which produces images of the earth’s subsurface. Geophysicists use computers to interpret 3D seismic data volumes, generate geologic models of the earth’s subsurface, and identify subsurface anomalies that are favorable for the accumulation of hydrocarbons. The company said in early November that fiscal fourth-quarter profits soared 82%. Net income totaled $5 million, or 66 cents per share, compared with $2.7 million, or 37 cents per share, last year. Analysts expected 63 cents per share. Quarterly sales grew 39% to $51.5 million from $37.1 million last year. The revenue growth was primarily due to price improvements, expanded capabilities of existing crews, and the operation of a 12th seismic data acquisition crew. Annual sales rose nearly 45% to $168.6 million from $116.7 million for fiscal 2005. Stephen Jumper, President and CEO of Dawson Geophysical Company said, "Fiscal 2006, our 25th year as a public company, was a record year in terms of revenue, net income, and EBITDA. The same can be said on a quarterly basis for the fourth quarter of fiscal 2006. Our financial performance has been fueled by our growth in recent years in both crew count and channel count." The company has beaten earnings estimates in two out of the past three quarters by an average margin of 22%. Year-over-year growth has accelerated meaningfully as well. Both analysts have raised their numbers for this year. Over the past month, this year's numbers have increased 16 cents to $2.71 per share. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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Joseph Parnes, Shortex newsletter - Three Economic Pillars

Joseph Parnes, editor of the Shortex newsletter, says the economy this year is being given a surprise lift by three pillars: business outlays for buildings/equipment, consumer spending, and above all exports. Read this featured expert’s commentary on exports. Then learn about three of his long plays. MARKET TREND: from December 6 ISM services @ 58.9 (the highest level since May) attracted more attention than previous dismal ISM manufacturing index data, when it fell below a 50 reading for the first time in three years. The revision of Q3 productivity with unit labor costs rising to 2.3% (consensus 3.2%) vs. 3.8% gives credence to the Fed future funds pricing @ 96% and a chance for the Fed to cut interest rate to 5%. Arguments could be raised that the Fed may not view the similarity of rate cuts to those of an absolute recession circa ’00. The economy this year is being given a surprise lift by three pillars: business outlays for buildings/equipment, consumer spending, and above all exports. As the housing slump has somewhat slowed economic growth, exports are the catalyst for the high rate of capacity utilization. The index of export orders in the industrial sector as a share of total goods produced is hovering @ 18%+ (the highest level since Jan ’06). The export phenomenon is being augmented by the maintenance of easy money to support this growth. This despite interest rate increases in the Euro zone and other world financial centers where their associated central banks have maintained inflation adjusted with an accommodating climate of little risk in lending rates policy well below of those in USA. The Dollar’s slump may be the needed element for the decline in U.S. Trade deficit and the narrowing spread between foreign and U.S. short-term rates. The trade weighted Dollar’s drop as of late @ 14% against major currencies has created a competitive gain especially on the Chinese Yuan. Long Positions include: Lindsay Manufacturing Co. (LNN): The maker/designer of automated irrigation systems used in the agricultural industry has brought modern farming an adjunct to natural rainfall. Its automated systems provides savings in water, energy and labor by its self-propelled center pivot and lateral move irrigation systems. Has production facilities in Brazil, France, South Africa and USA. Achieved three triple-digit gains in the last 4 qtrs. Mobile Telesystems OJSC (MBT): The Russian mobile cellular provider reported 3rd Qtr earnings of $486.3 million up 40%, with revenue up by 30% to $1.79 billion. Benefiting from new regulations, where cell phone users are no longer charged for incoming/ outgoing calls. Pushing into neighboring new republics the likes of: Georgia, Kazakhstan, Uzbekistan and Ukraine a plus. TAT Technologies Ltd. (TATTF): The provider of heat transfer used on-board commercial/military aircrafts offers its services through its subsidiary Airepair Int’l, (Limco Airepair) and Piedmont aviation Component Services. Enjoyed earnings of 28cents/shr up 90%+ and sales of up 32% in recent qtr. This article highlights the commentary of Joseph Parnes for the Zacks.com audience. Joseph Parnes provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Shortex" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Shortex" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Gregory Spear, The Spear Report newsletter - Blessing in Disguise

Gregory Spear, editor of The Spear Report newsletter, explains that the recent rally has not been driven by speculators; rather it has been based on real-world fundamentals and that is good news. Benefit from this featured expert’s insight. Then take a look at a stock the Spear sees as a preeminent play on accelerating global electricity demand. Afterward, discover a few names the Consensus Buy List. Commentary from December 8 It is a truism that the stock market attempts to discount future economic conditions, perhaps as far ahead as 6-9 months, even in this fast moving world. The impressive rally that began in late July has been based on an assumption by a consensus of equity investors that there will not be a recession in 2007. In other words, the soft landing cohort has been in charge. But what if the forecast is wrong? Or what if it changes over the next few weeks? A correction to this four-month rally could begin at any time and be just that, a correction in a continued uptrending market. The correction could last for two or three months and not change the fundamental outlook, though it would certainly feel like doomsday. A robust global economy driven by globalization and by strong growth in local consumption among emerging market economies is providing an earnings cushion for the multinational corporations that make up the majority of the S&P 500 and the Dow Jones Industrials. If the U.S. consumer stumbles, revenues from foreign sources will soften the blow. If the dollar continues to fall, earnings from abroad will be incrementally higher and our export trade will be stimulated. That’s not speculation--exports are already up over 15% year-over-year. That’s good for business when productivity is also improving…and it is. Gregory Spear and his team believe this is one reason that year to date the Dow and the S&P 500 are up 15% and 13% respectively, while the Nasdaq has returned just over 11%. In other words, this has not been a rally driven by speculators; rather it has been based on real-world fundamentals. That’s good news because at this time (Thursday 12/7) there are no signs that the fundamental picture is about to change. But then, the fundamentals of the U.S. and global economies weren’t any different during the steadily down market months of May through July either. Good fundamentals don’t prevent technical corrections, and a correction is due, so be careful out there. Cameco (CCJ) When Spear and his team last profiled Cameco, the world’s dominant miner of uranium, in January of this year, shares were selling for around $36, or 10% below current levels and the company had a P/E ratio of 86. That valuation is certainly one reason shares have slightly lagged the performance of the S&P 500 this year. Today, however, the stock trades at a P/E of 38, which is still rich, but Spear and his team see a compelling story for subscribers with long-term horizons. If you didn’t buy shares in January, read on. Cameco is an integrated energy operation, handling everything from mining to electricity production, but it is the company’s extensive mining interests around the globe, estimated to hold more than 60% of the world’s known uranium reserves, that are likely to drive share appreciation over the next 5-10 years. Specifically, Spear and his team see Cameco as a preeminent play on accelerating global electricity demand. Uranium is only found in a few countries in commercially viable concentrations, with Canada the world’s most important supplier. Cameco’s McArthur River mine boasts uranium ore that contains more than 20% U3O8, compared with mines in Australia or the American southwest that may have less than .5% U308. Cameco’s other principal Canadian mining operation at Rabbit Lake can produce U308 at less than $10/lb. Spot prices are currently $63/lb and Cameco sells about 60% of its production on the spot market and 40% with fixed price contracts. While the global inventory of 441 nuclear plants has held steady for years, this is about to change, as some 30 new plants are under construction in 11 countries. One pound of uranium is equivalent to the energy content of 10 tons of coal. New reactors require more than 1 million pounds of uranium for initial fueling and consume another half million pounds annually. Existing nuclear power plants used 186 million pounds of uranium in 2005, but only 108 million pounds are currently being produced each year. The difference is being made up from reprocessing high-grade nuclear weapons reserves in the U.S. and Russia, but this source of supply won’t last. In fact, there is already intense competition for available supplies, which is why uranium spot prices have more than quintupled since 2002, and have soared from $43 to $63 just since July. This demand is coming not only from utilities, but also from miners who have delivery contracts to fulfill and are faced with inadequate production. Is demand likely to continue? Let’s take a look at the global picture. China has 10 nuclear reactors in operation, but they provide only 2% of the country's power, vs. 20% for the reactors in the U.S. Because China recognizes that its reliance on coal is causing significant environmental damage, the government is planning to double the number of plants in operation by 2013 and double it again by 2020. Based on current projects, there will be almost 40 new reactors in Asia coming online within the next seven years, by 2013. Currently, China imports about half the uranium it uses and that figure is going to increase dramatically. Meanwhile, India is planning to build eight new nuclear reactors, with a long-term goal of increasing nuclear power's share of its electric output from 3% to 25%. Russia gets about 16% of its electricity from nuclear but wants to double that figure in order to generate more foreign currency from the country's vast oil and natural gas deposits. That means building more than 30 new large-scale reactors. Japan gets about 30% of its electricity from nuclear plants but wants to increase that percentage to 40% as soon as possible, to reduce excessive dependency on imported oil. In Europe, both the U.K. and Germany are likely to increase nuclear generating capacity to meet the CO2 emissions guidelines of the Kyoto Protocol and reduce dependency on imports from the Middle East. Why do utilities want to switch to nuclear? Cost stability and cost containment. The cost of generating electricity from fossil fuels fluctuates greatly from year to year and season to season. Moreover, fuel costs account for 75- 85% of the operating budget of a typical power plant, whereas nuclear fuel prices come in at less than half that. As heavy metal and greenhouse emissions become more regulated, environmental costs will only increase, while nuclear power plants produce no such emissions. The enormous problem of no known safe way to dispose of nuclear waste from these plants continues to be ignored, as do the plethora of studies of chronic health problems in surrounding communities, but as long as this remains the case, the economics of nuclear power have the convincing façade of efficiency. When the waste disposal problem finally gets dealt with, and/or another Chernobyl reminds the world of the incalculable cost of an accident, nukes may again come to be viewed as vastly more expensive than other energy sources, but most countries are content to pass those burdens off to the next generation, for now. As issues of national security merge with energy security, nuclear power becomes particularly attractive since the world’s largest reserves of uranium are located in Canada and Australia--countries unlikely to engage in energy blackmail. There are also decent supplies in Wyoming, where Cameco will be developing a 5 million lb/year operation. Cameco already produces 2 million lbs. of uranium annually in the U.S. Although Cameco is the only company that can significantly increase production over the next few years, its short-term profitability is limited by existing contracts that call for delivery of uranium at prices far below spot. These legacy contracts meant that Cameco's realized uranium price was just $15.45 per pound in 2005, about half the spot price. This year CCJ will net only about $20 per pound, but the good news is that nearly one-third of its long-term contracts roll over every year, which will most likely accelerate earnings growth for the rest of the decade. As of the most recent reported quarter, CCJ earned $337 million on revenues of $1.3 billion or 91 cents a share year to date, with a net debt to capitalization ratio of just 8%. The company expects 2006 revenue to be about 50% higher than a year ago and gross margins to improve from 23% to 30%. By the way, Cameco owns several gold mines, as well, which have contributed $314 million to revenues in 2006. Spear and his team anticipate that CCJ can continue to grow steadily for years to come. Consensus Buy List stocks include: Meritage Corp. (MTH) is one of the nation's largest single-family homebuilders. ExpressJet Holdings, Inc. (XJT), operating as Continental Express, is an operator of regional jets. Anixter International, Inc. (AXE) is a leading global distributor of communication products used in building enterprise and service provider data, voice and video networks. In addition, Anixter is a leading distributor of specialty wire and cable products to original equipment manufacturers and to industrial companies for maintenance and repair operations. Sunoco, Inc. (SUN) is principally a petroleum refiner and marketer with interests in cokemaking. Sunoco's petroleum refining and marketing operations include the manufacturing and marketing of a full range of petroleum products, including fuels, lubricants and petrochemicals, and the transportation of crude oil and refined products. These operations are conducted principally in the eastern half of the United States. Sunoco's cokemaking operations are conducted in Virginia and Indiana. This article highlights the commentary of Gregory R. Spear for the Zacks.com audience. Gregory R. Spear provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Spear Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Spear Report" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Richard Lehmann, Income Securities Investor newsletter - Getting Defensive in 2007

Richard Lehmann, editor of the Income Securities Investor newsletter, says the Fed needs to rethink its rate policy for next year. Find out why and read about this featured expert’s model portfolio suggestions. Afterward, take a look at two of Lehmann’s corporate bond recommendations. Commentary from December 8 If you regularly listen to the media pundits you will note a significant division between those who feel optimistic about the economy for next year and those who predict a significant downturn. The R word is still being used only by a very few, but this alone is significant since people from Wall Street don’t use such language. Fixed income investors are less picky. If a recession is near or likely, they want to be prepared. Fortunately for them, recessions are usually better than boom times. The continuing decline of interest rates has puzzled most everyone, but should be looked at in context. If you examine Lehmann’s table of Comparative Current Yields, you will note that ten year Treasuries have only declined 7 basis points year over year. Corporate rates show similar yearly changes except for the below investment grade categories, especially for CCC which shows yields dropping 161 basis points. But, that’s a story for another day. The fact that market interest rates have not followed the Fed’s lead, thereby causing an inverted yield curve, tells Lehmann that the Fed needs to rethink its rate policy for next year. With this in mind, Richard Lehmann wrote his latest column in Forbes laying out a model portfolio that is spread across the various key drivers all income investors should be in with recommended allocation levels. Specifically Lehmann recommended allocations into securities that are sensitive to interest rates (40% allocation), energy prices (20%), stock market performance (20% allocation in convertibles) and company or industry specific events and cash (20%). Corporate Bond Recommendations include: GNC Corp (GNC) is the world’s largest retailer of nutritional products including vitamins, herbal and other specialty supplements, and sports nutrition, diet and energy products. It has over 4800 retail locations in the U.S., and franchise locations in 47 international markets. Both Moody’s and S&P recently upgraded their ratings on this bond. Third quarter 2006 revenue was $367.7 million, 14% above the $322.6 reported for the same period last year. Net income improved 337% to $13.87 million. High-risk investors should consider this bond but be sure to note the call date and price. Pogo Producing (PPP) explores for, develops and produces oil and natural gas. It owns about 4.8 million gross leasehold acres for oil and gas in North America, 6.35 million acres in New Zealand and 1.48 million acres in Vietnam. Pogo recently recorded third quarter 2006 revenues of $353.77 million and net income of $33.34 million. Last year it posted third quarter revenue of $275.4 million and net income of $473.5 million. Excluding the sale of its Thailand properties, which closed in the third quarter of 2005, the comparable net income would have been $61.9 million. Even though Moody’s upgraded this issue in September Lehmann and his team still recommend it only for high-risk portfolios. This article highlights the commentary of Richard Lehmann for the Zacks.com audience. Richard Lehmann provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Income Securities Investor" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Income Securities Investor" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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