(VOD) - Vodafone Group - Profit forecasts for this year jumped 18.8% over the past 60 days

Vodafone Group Public Limited Company (VOD), a Zacks #1 Rank stock, added 20.9 million customers during the first half of fiscal 2007. The company outlined a number of measures to cut costs and expressed its desire to expand in faster growing emerging markets. Consensus estimates for both this year and next have risen considerably over the past two months. VOD has a price-to-book ratio of only 1.1. Full Analysis Vodafone Group Public Limited Company is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States. As of Dec 31, 2006, based on the registered customers of mobile telecommunications ventures in which VOD had ownership interests, the company had 198.6 million customers On Nov 14, VOD reported results for the first half of fiscal year 2007 (ended Sep 30, 2006). Revenues came in at 15.6 billion pounds sterling, up 7.2% from a year ago. Organic growth constituted 4.1%. Adjusted operating profit jumped 7.5% to 5,141 million pounds, fueled by 30% growth in Verizon Wireless. During the first half of the year, the company added 20.9 million customers. For the entire year, VOD projects revenues from mobile communications to grow between 5% and 6.5% when compared to results achieved last year. The company outlined a number of measures to cut costs, in which it will restructure its operations along three business lines: Europe, emerging markets, and new businesses and innovation. While much of the focus is now on retaining its existing customer base, VOD is also looking at expansion in faster growing emerging markets, such as Eastern Europe, to propel growth. VOD also aims to achieve strong growth in the Middle East, Africa, Asia Pacific and Affiliates (EMAPA) region. Consensus estimates for both this year and next have risen considerably over the past 60 days. Profit forecasts for this year jumped 18.8% to $2.15, while estimates for next year are up 19.3% to $2.35 over the same period of time. VOD provides returns to shareholders through dividends. The company has historically paid dividends semiannually, with a regular interim dividend payable in February and a final dividend payable in August. VOD has a current dividend yield of 4.3% and a five-year average dividend yield of 2.3%. VOD is currently trading at a valuation of 13.7x current fiscal-year estimated earnings and at 12.6x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 14.7x next fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.1, compared to 4.9 for the market. 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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(RSG) - Republic Services, Inc - Six of the nine covering analysts upped their profit forecasts for this year

Republic Services, Inc. (RSG) exceeded analysts’ earnings expectations for six straight quarters. The company recently reported solid fourth-quarter and full-year 2006 results. RSG has boosted shareholder value through both dividend payments and share repurchases. The company is currently yielding 1.5% and has a five-year average dividend yield of 0.86%. Full Analysis Republic Services, Inc. is a leading provider of services in the domestic, non-hazardous solid waste industry. The company provides non-hazardous solid waste collection services for commercial, industrial, municipal and residential customers through 140 collection companies in 21 states. RSG also owns or operates 92 transfer stations, 59 solid waste landfills and 32 recycling facilities. On Feb 1, RSG reported fourth-quarter profits of $66.9 million, or 51 cents per share. Profits in the prior-year period amounted to 44 cents per share, marking a 15.9% improvement. The Street expected 50 cents per share. RSG exceeded analysts’ earnings expectations for six straight quarters. Revenues climbed 3.8% to $766.2 million, compared to $738.1 million for the same period in 2005. For the entire year, profits jumped 10.2% to $279.6 million from $253.7 million in 2005. Revenues increased 7.3% to $3.07 billion versus $2.86 billion last year. RSG increased revenues for the past eight years while growing profits for three years running. Chairman and CEO James E. O'Connor stated, “In 2006, we experienced another record setting year. During 2007, we will remain focused on delivering quality service to our customers and improving our return on investment.” Over the past 30 days, consensus estimates for both this year and next are up two cents each to $2.29 and $2.52, respectively. Six of the nine covering analysts upped their profit forecasts for this year. Upward revisions were submitted by two analysts for next year. Earnings per share are projected to grow 11% over the next 3-5 years, in line with that of the industry average. The Board of Directors recently declared a regular quarterly cash dividend of 16 cents per share. The dividend is payable on Apr 16 to shareholders of record as of Apr 2. After RSG’s 3-for-2 stock split (effective on Mar 16), 10.67 cents per share will be distributed. The company is currently yielding 1.5% and has a five-year average dividend yield of 0.86%. RSG has also returned value to shareholders through its stock repurchase program. During the three months ended Dec 31, 2006, the company bought back 1.8 million shares at a cost of $74.3 million. During the past year, RSG repurchased a total of 12.2 million shares of its common stock for $492.0 million. As of Dec 31, 2006, the company could still buy back an additional $249.2 million of its common stock under its existing stock repurchase program. The company’s return on equity betters that of the industry average—19% compared to 14%. RSG 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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(RATE) - Bankrate, Inc - advertising on its Web sites pushed fourth-quarter profit up 50%

The company has met or exceeded earnings estimates in seven of the past eight quarters. Two analysts have raised their earnings forecasts for this year. Over the past month, this year's estimates have increased five cents to 92 cents per share. The stock is trading at 32.6x next year's earnings, above the long-term projected growth rate of 26.5%. Full Analysis Bankrate, Inc., (RATE) along with its subsidiaries, engages in the ownership and operation of an Internet-based consumer banking marketplace. The company?s Web site, Bankrate.com, aggregates information on mortgages, credit cards, new and used automobile loans, money market accounts, certificates of deposit, checking and ATM fees, home equity loans, and online banking fees. The company also provides financial applications and information to a network of distribution partners through national and state publications. It surveys approximately 4,800 financial institutions in 50 states in the United States to provide unbiased rates. RATE said earlier this month that robust advertising on its Web sites pushed fourth-quarter profit up 50%. Quarterly profit rose to $3.9 million, or 21 cents per share, from $2.6 million, or 15 cents per share, in the year-ago period. Analysts only expected 17 cents. Revenue rose 49% to $20.7 million from $13.9 million. "Q4 2006 was the most profitable quarter, and 2006 was the most profitable year in the Company's 30 year history," said Thomas R. Evans, President and CEO of Bankrate, Inc. "We continue to improve our operating margins, increase our advertiser base and continue to leverage the value of our properties," Mr. Evans added. The company has met or exceeded earnings estimates in seven of the past eight quarters. Two analysts have raised their earnings forecasts for this year. Over the past month, this year's estimates have increased five cents to 92 cents per share. The stock is trading at 32.6x next year's earnings, above the long-term projected growth rate of 26.5%. 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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(WWH) - SMART Modular Tech - return on equity quadruples that of the industry average - 32% compared to 8%

SMART Modular Technologies (WWH), Inc. (SMOD), a Zacks #1 Rank stock, topped analysts’ earnings expectations for the past four quarters by an average margin of 14.5%. Analysts have upped their profit forecasts for both this year and next. Earnings per share are projected to grow 15% over the next 3-5 years. SMOD’s return on equity quadruples that of the industry average—32% compared to 8%. Its PEG ratio currently sits at 0.87. Full Analysis SMART Modular Technologies (WWH), Inc. is a leading independent designer, manufacturer and supplier of value added subsystems to original equipment manufacturers. The company’s products include memory modules, embedded computing subsystems and thin film transistor liquid crystal display, or TFT-LCD, products. SMOD’s products and services are used for a range of applications in the computing, networking, communications, printers, storage and industrial markets worldwide. SMOD exceeded analysts’ earnings expectations for the past four quarters by an average margin of 14.5%. In its most recent quarter, the company surprised to the upside by 9.5% when it posted first-quarter fiscal 2007 profits of $14.6 million, or 23 cents per share. Net sales came in at $237.2 million, up 49.8% compared to $158.3 million for the first quarter of fiscal 2006. President and CEO Iain MacKenzie stated, “We are pleased to deliver results that exceeded the high end of our revised guidance as we continue our track record of profitable growth. Our value-add customer application focus has continued to bring us success in leveraging our strengths as the largest independent OEM focused manufacturer of electronic subsystems.” Looking ahead, SMOD projects second-quarter earnings per share between 20 and 21 cents. In the prior-year period, the company reported profits of 15 cents per share. For the entire year, SMOD expects earnings between 88 and 90 cents per share. Consensus estimates for this year have risen three cents to 89 cover the past 60 days. Estimates for next year are up five cents to $1.06 over the same period of time. Earnings per share are projected to grow 15% over the next 3-5 years. SMOD is currently trading at a valuation of 13.0x current fiscal-year estimated earnings and at 11.0x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x current fiscal-year estimated earnings and at 14.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 4.2, compared to 4.9 for the market. Its PEG ratio currently resides at 0.87. SMOD’s return on equity quadruples that of the industry average—32% compared to 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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(ATR) - AptarGroup, Inc - estimates rose the past seven days, with four of the five covering analysts submitting upward revisions

AptarGroup, Inc. (ATR) beat the consensus earnings estimate for the past five quarters. The company recently reported record results for the fourth quarter and full year of 2006. Consensus estimates are up for both this year and next. ATR has a current dividend yield of 1.3% and a five-year average dividend yield of 1.0%. This Zacks #1 Rank stock has also returned value to shareholders in the form of share buybacks. Full Analysis AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the personal care, fragrance/cosmetic, pharmaceutical, household and food/beverage markets. ATR beat analysts’ earnings expectations for five straight quarters. In its most recent quarter, the company reported fourth-quarter profits 74 cents per share. The result compares favorably to the 67 cents earned in the prior-year period. Furthermore, with analysts calling for 71 cents, the company surprised to the upside by 4.2%. Revenues jumped 24.7% to a record $422.4 million from $338.8 million in the fourth quarter of 2005. For the entire year, profits came in at $102.9 million versus $100 million last year. Revenues increased 14.3% to $1.6 billion from $1.4 billion in 2005. Commenting on ATR’s full-year performance, President and CEO Carl A. Siebel stated, “Each of our business segments enjoyed solid sales growth during the year enabling us to achieve our 41st consecutive year of sales growth and report record sales of $1.6 billion.” Looking ahead to this quarter, ATR announced that earnings per share will be between 68 cents and 73 cents. This would represent a 19% to 28% increase when compared to the 57 cents earned in the first quarter of last year. The consensus estimate for this year calls for profits of $3.31 per share. The estimate rose 15 cents over the past seven days, with four of the five covering analysts submitting upward revisions. Profit forecasts for next year experienced a 22-cent jump to $3.67 over the same period of time. Three of the four covering analysts upped their estimates for 2008. Earnings per share are projected to grow 10% over the next 3-5 years, slightly above the 9% expected growth rate for the industry. On Jan 18, the Board of Directors declared a quarterly cash dividend of 22 cents per share. ATR has a current dividend yield of 1.3% and a five-year average dividend yield of 1.0%. The company has also returned value to shareholders in the form of share buybacks. ATR spent $13.3 million to repurchase approximately 223,000 shares of its common stock during the fourth quarter. 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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(GTIV) - Gentiva Health Services, Inc - well positioned to benefit from growth of the home healthcare industry

GTIV has met earnings estimates in each of the past three quarters. Six analysts have raised their forecasts for 2007. Over the past month, 2007 estimates have increased eight cents to $1.15 per share. The company's average broker rating has been steady at 2.89. Full Analysis Gentiva Health Services, Inc. (GTIV) is the nation s largest provider of comprehensive home healthcare services, with more than 500 owned and operated direct service delivery units at approximately 400 locations in 36 states. Gentiva derives revenues through the provision of (1) home healthcare services on a direct basis to patients, including specialty services and neuro-rehabilitation services; (2) home healthcare services on an indirect basis through the delivery of national, regional, and local administrative services to managed care organizations and self-insured employers; and (3) home healthcare consulting services to independent and hospital-based home health agencies. The graying of the population and an increasing focus on healthcare cost containment underpins a shift towards lower-cost (and more convenient) solutions, such as home healthcare. According to Zacks Equity Research Analyst Chris Kallos, the company is well positioned to benefit from growth of the home healthcare industry through both its geographic reach and multiple service offering. A key feature of the Gentiva business model is the co-ordination of ancillary care services to member patients of managed care organizations through the CareCentrix unit. CareCentrix contracts, the largest being with CIGNA, provide relative earnings stability and valuable preliminary market data for business development of GTIV s direct services. The company has recently initiated a number of productivity initiatives designed to contain administrative costs and foster internal growth, which if successful will cushion operating margins to any sudden changes to government-sourced revenues. GTIV has met earnings estimates in each of the past three quarters. Six analysts have raised their forecasts for 2007. Over the past month, 2007 estimates have increased eight cents to $1.15 per share. The company's average broker rating has been steady at 2.89. GTIV is trading at 17.3x next year's estimate, slightly below the projected long-term growth rate of 18.25%. 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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(NOV) - National Oilwell Varco, Inc - Beat earnings estimate for the past four quarters by an average margin of 14.7%

National Oilwell Varco, Inc. (NOV) recently released strong results for both the fourth quarter and full year of 2006, sending earnings estimates up considerably over the past seven days. This Zacks #1 Rank stock has exceeded analysts’ earnings expectations for the past four quarters by an average margin of 14.7%. NOV has a price-to-book ratio of 2.3, compared to 4.9 for the market. Its PEG ratio currently resides at 0.47. Full Analysis National Oilwell Varco, Inc. engages in the design, construction, manufacture and sale of systems, components and products to the oil and gas industry worldwide. The company operates through three segments: Rig Technology, Petroleum Services & Supplies and Distribution Services. NOV topped the Street’s earnings estimate for the past four quarters by an average margin of 14.7%. In three out of the four quarters, the company managed to surprise by a double-digit percentage. On Feb 6, NOV announced fourth-quarter profits of $239.2 million, or $1.35 per share. Compared to the fourth quarter of 2005, this marked an astounding 114.3% year-over-year improvement. It also represented a 28.6% positive surprise. Revenues soared 50.7% to $2.08 billion from $1.38 billion a year earlier. The company attributed its impressive quarterly results to strong demand for its rig technology products and oil field supplies. For the entire year, profits jumped to $684 million, compared to $286.9 million in 2005. Revenues ballooned to $7.03 billion from $4.64 billion. NOV increased revenues, expanded gross margins and grew profits for the past three years. Chairman, President and CEO Pete Miller stated, “Our company enjoyed a very successful 2006. Each of our three segments reported higher year-over-year sales and profits for the year, and we enter 2007 with a very healthy backlog of equipment and technology to deliver to our customers.” Over the past seven days, consensus earnings estimates for this quarter and next have risen 17.3% and 13.9%, respectively. Eight analysts upped their expectations for both quarters. Estimates for this year and next have also experienced a considerable leap, rising 12.5% and 12.0%, respectively, over the same period of time. Upward revisions were submitted by 11 analysts for this year, while seven analysts followed suit for next year. Earnings per share over the next 3-5 years are projected to grow at a rate greater than that of the industry average—-27% compared to 25%. NOV is currently trading at a valuation of 12.5x current fiscal-year estimated earnings and at 10.3x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.8x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.3, compared to 4.9 for the market. Its PEG ratio currently resides at 0.47. 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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(APD) - Air Products and Chemicals, Inc - Analysts responded to APD’s bullish guidance by upping their earnings estimates

Air Products and Chemicals, Inc. (APD) topped analysts’ earnings expectations for seven straight quarters, most recently by 9.6% in the first quarter of fiscal 2007. The company raised its full-year earnings per share guidance after delivering strong first-quarter results. Analysts responded by upping their profit forecasts for both this year and next. APD has a current dividend yield of 1.8% and a five-year average dividend yield of 2.0%. Full Analysis Air Products and Chemicals, Inc. serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. APD has operations in over 30 countries. APD beat the consensus earnings estimate for seven consecutive quarters and in nine out of the past 11. Earnings per share grew 12.1% over the past five years and are expected to grow by a larger magnitude going forward—13.3% over the next 3-5 years. On Jan 24, APD reported first-quarter fiscal 2007 profits of $230 million, or $1.03 per share. With analysts expecting 94 cents per share, the company surprised to the upside by 9.6%. The result represented a 28.8% year-over-year improvement when compared to the 80 cents posted in the first quarter of fiscal 2006. Revenues climbed 20.3% to $2.43 billion from $2.02 billion last year. Chairman and CEO John Jones stated, “This was an outstanding quarter. We delivered substantial top-line growth through strong volumes, improved pricing and higher equipment results. We also drove productivity to the bottom line, resulting in significantly expanded margins and increased return on capital.” Based on the company’s strong first-quarter results, APD raised its full-year earnings per share guidance to between $3.98 and $4.10, from its previous outlook, which called for profits between $3.84 and $4.00 per share. Analysts responded to APD’s bullish guidance by upping their earnings estimates. Estimates for this year jumped 12 cents to $4.08 over the past 30 days. Nine of the 10 covering analysts submitted upward revisions. Profit forecasts for next year have risen 17 cents to $4.56 over the same period of time, and reflect upward revisions by six of the nine covering analysts. On Feb 5, APD announced its plans to expand production capacity at two of its factories by a combined 850 tons a day. Demand from field services customers, as well as clients in electronics, metal manufacturing and food processing prompted the move. On Nov 16, the Board of Directors declared a quarterly cash dividend of 34 cents per common share of stock. The company has a current dividend yield of 1.8% and a five-year average dividend yield of 2.0%. APD 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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(ALVR) - Alvarion, Ltd - average surprise has been over 50% in each of the past four quarters

Alvarion has easily exceeded earnings expectations in each of the past four quarters. The average surprise has been over 50% over that time period. Two analysts have raised their forecasts for this year. 2007 estimates have increased 14% over the past week. Similarly, first-quarter estimates have jumped 25% over the past week. Full Analysis Alvarion, Ltd. (ALVR) engages in the design, development, manufacture, and marketing of wireless products worldwide. It offers WiMAX and other wireless broadband solutions, as well as compact cellular networks to carriers, Internet service providers, and private network operators primarily in developing countries and remote areas. The company's products include BreezeMAX platform for fixed and nomadic, and portable and mobile applications; BreezeACCESS products, which features orthogonal frequency division multiplexing-based technology, enable fixed high-speed data and voice, point-to-multipoint wireless broadband applications; and BreezeNET products that provide building-to-building bridging solutions, mobile connectivity support, and wireless access to a local area network. ALVR reported a nice fourth-quarter and was rewarded by investors. The company broke even for the quarter, exceeding estimates by three cents. Revenue rose 22% to $50.3 million from $41.3 million. Nearly 50% of revenue came from WiMAX. "We had an exemplary quarter and an overall good year," said Tzvika Friedman, President and CEO of Alvarion. "During 2006, we focused on expanding the breadth of our customer base, and received orders from a variety of incumbents and challengers from around the world. We also succeeded in expanding some trials and smaller scale deployments into larger scale commercial deployments with longstanding customers such as Iberbanda in Spain, Netia in Poland, and Telecom South Africa." The company's revenue guidance for Q1 2007 is $49 million to $53 million. Non- GAAP per share results are expected to range between $0.01 and $0.04. GAAP per share results are expected to range between ($0.02) and $0.01. Analysts expect revenues to be around $50 million, so the midpoint of the guidance is a bit higher than this. Alvarion has easily exceeded earnings expectations in each of the past four quarters. The average surprise has been over 50% over that time period. Two analysts have raised their forecasts for this year. 2007 estimates have increased 14% over the past week. Similarly, first-quarter estimates have jumped 25% over the past week. 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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(FASRF) - Bill Martin, FindProfit newsletter - QUICK HIT ALERT

Bill Martin, editor of the FindProfit newsletter, offers analysis on Norwegian enterprise search firm Fast Search & Transfer. Read this featured expert�s update on the stock and find out why he remains bullish on company's prospects. Also, learn about the recent announcement of two new products. QUICK HIT ALERT from February 5 Norwegian enterprise search firm Fast Search & Transfer (FASRF) announced two new products recently. The one product, FAST Adaptive Information Warehouse (AIW), layers Business Intelligence (BI) with search to allow business users to search enterprise data without having to generate a time-consuming predefined report. The product integrates numeric and text mining to bring up relevant query results, so users can make informed decisions. Reuters and other firms are already using the product, giving it glowing reviews. "At Reuters we are driving scalable retrieval of structured information to provide advanced search and navigation facilities for users of our premium desktop products. The advantage of FAST is that it is reliable, versatile, and guarantees subsecond responses for all queries regardless of complexity," said Ray Tomkins, search architect at Reuters. FASRF also revealed today that it is set to launch a contextual ad platform called AdMomentum later this quarter. The product, developed in collaboration with a number of online publishers, allows companies to bypass third-party contextual advertising services (such as Yahoo! & Google) to give publishers more control and to allow them to keep more of their revenues. The platform's features offer customers a self-service environment for their advertisers, the ability to sell locally and nationally, and customer interfaces and ranking algorithms to match the needs of their audiences and advertisers. "Publishers know their content, their audiences, and their advertisers' needs best -- key insights necessary to compete in the online world," said Perry Solomon, VP and GM, Media Solutions at FASRF. "But to thrive in an increasingly competitive marketplace, they need a revenue engine, not just a search engine. The R&D that FASRF has committed toward the development of that revenue engine will pay off for publishers, growing their revenues and reversing the tide of ad dollars that are going to third-party services." Bottom Line: While shares of FASRF continue to be mired in a slump, Bill Martin and his team believe the company is poised for continued strong growth this year, in part due to new product launches like the ones just announced. The market has been disappointed because the company has been investing aggressively in its product line, sales force, and new initiatives -- thus limiting its bottom-line upside -- but Martin and his team think this is the right move to spur even more growth longer term. Martin�s team is particularly intrigued with FASRF's contextual ad platform, as it gives the company the opportunity to leverage its 3000+ customers to tap into the booming pay-per-click marketplace. Online advertising is the engine of the digital economy, however, Yahoo! (YHOO) and Google (GOOG) dominate the pay-per-click market, forcing competing media companies to use their monetization platforms. FASRF is seeking to provide a viable and credible alternative to these media companies to self-monetize their sites, in lieu of partnering with YHOO & GOOG. After more than doubling their stake in the stock earlier this year, and with the stock up only modestly since then, Martin and his team remain bullish on FASRF's prospects. This article highlights the commentary of Bill Martin for the Zacks.com audience. Bill Martin provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "FindProfit" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "FindProfit" 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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(HD) - (MCD) - (WM) - Kelley Wright, Investment Quality Trends newsletter

Kelley Wright, editor of the Investment Quality Trends newsletter, recently read an article, which indicated that high payout ratios lead to faster earnings growth and low payout ratios lead to slower earnings growth. Wright explains that this is exactly the opposite of previously held conventional wisdom and notes that many of his Select Blue Chips adhere to this policy of higher payout ratios. Read this featured expert's thoughts on the unconventional policy. Then learn about three of his Timely Ten holdings. Commentary from February 1 Kelley Wright recently came across an article that referenced a paper published by Robert Arnott and Clifford Asness entitled 'Does Dividend Policy Foretell Earnings Growth?' In a nutshell the authors posited that high payout ratios lead to faster earnings growth and low payout ratios lead to slower earnings growth, exactly the opposite of previously held conventional wisdom. The authors suggested that the willingness of company managements to pay out relatively high proportions of current earnings could be indicative of the managers' confidence in the abilities of their corporations to generate higher earnings in the future. A quick glance at many of Wright and his team's 'G' rated stocks, those stocks with a superb record of 10% annual dividend growth over the previous twelve years, does indicate that many of these companies are comfortable in paying out as much as 45% to 70% of current earnings in dividends to shareholders. While Wright and his team aren't ready to abandon their practice of preferring companies that pay out 50% of earnings or less, it is interesting to note that many of their Select Blue Chips adhere to this policy of higher payout ratios. The Timely Ten include: Home Depot (HD) is the one of world's largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager's Hardware in New Jersey. Mc Donald's (MCD) develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people. Washington Mutual (WM) is engaged in consumer banking, mortgage banking, commercial banking, financial services, and consumer finance. The company conducts its business operations through its subsidiaries. The company's principal banking subsidiaries are Washington Mutual Bank, FA, Washington Mutual Bank, and Washington Mutual Bank fsb. Its other principal subsidiaries are Washington Mutual Finance Corporation, Long Beach Mortgage Company and WM Financial Services, Inc. This article highlights the commentary of Kelley Wright for the Zacks.com audience. Kelley Wright provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Investment Quality Trends" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Investment Quality Trends" 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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(WB) - (PNC) - (ANF) - John Reese, Validea Hot List newsletter

John Reese, editor of the Validea Hot List newsletter, reviews the performance of his Hot List versus the S&P 500. Receive an update. Then find out what this featured expert has to say about selecting fundamentally sound stocks. Afterward, learn about a Validea newbie as well as a couple of other holdings that are currently in the Validea Hot List portfolio. Validea Hot List Performance January 26 Since inception, the Validea Hot List has increased 172.3 percent, versus 42.3 percent for the S&P 500. Year to date, the Validea Hot List has fallen 4.5 percent compared with an increase of 0.4 percent for the S&P 500. Since John Reese and his team�s last issue of the newsletter two weeks ago, the Validea Hot List is up 0.4 percent, while the S&P 500 is unchanged. After completing its 4th consecutive year of more than doubling the return of the S&P 500, the Hot List has started off 2007 on a more negative note, as Reese and his team's energy holdings have not performed well and the Compania Anonima Nacional Telefonos de Venezuela (VNT) loss (the stock is being removed as of this issue) has had a negative impact on performance. As Reese and his team have said in the past, though, these types of periods can and will happen and one of the most important aspects on Reese and his team�s system is the discipline to stay the course through them. So Reese�s team will stay the course and continue to select fundamentally sound stocks. That approach has worked very well historically and they continue to have confidence that it will work in the future. The Newbies include: Wachovia Corp. (WB) Wachovia is the nation's fourth largest bank, with assets of $555 billion. This company is favored by three guru strategies. One of the gurus is Martin Zweig. The Martin Zweig Strategy There are a number of reasons the Zweig strategy likes this bank, including: revenues and earnings are growing in balance, the rate of quarterly sales growth is increasing, earnings are growing, earnings growth is persistent (they have increased in each of the past five years), and the bank's long-term earnings growth rate is 18.19 percent, above the 15 percent minimum set by the strategy. Other Hot List stocks include: The PNC Financial Services Group, Inc. (PNC) is a diversified financial services company in the United States, operating businesses engaged in retail banking, corporate and institutional banking, asset management, and global fund processing services. The Company operates, directly and through its subsidiaries, in its primary geographic markets in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky and the greater Washington, D.C. area. It also provides certain asset management and global fund processing services internationally. During the year ended December 31, 2005, PNC reorganized its banking businesses into two units: Retail Banking and Corporate & Institutional Banking. At December 31, 2005, PNC's consolidated total assets and deposits were $92 billion and $60.3 billion, respectively. In April 2006, the Company acquired Healthcare Administration Technologies, Inc., a healthcare clearing house based in Tulsa, Oklahoma. Abercrombie & Fitch Co. (ANF) is a specialty retailer that operates stores selling casual apparel, such as knit shirts, graphic t-shirts, jeans, woven shirts, shorts, as well as personal care and other accessories for men, women and kids under the Abercrombie & Fitch, abercrombie, Hollister and RUEHL brands. As of January 28, 2006, the Company operated 851 stores in the United States and Canada. During the fiscal year ended January 28, 2006 (fiscal 2005), A&F purchased merchandise from approximately 246 factories and suppliers located throughout the world, primarily in Southeast Asia and Central and South America. In fiscal 2005, the Company did not source more than 5% of its apparel from any single factory or supplier. A&F pursues global sourcing that includes relationships with vendors in 40 countries and the United States. This article highlights the commentary of John Reese for the Zacks.com audience. John Reese provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Validea Hot List" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Validea Hot List" 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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