Zacks.com: Bear of the Day
Zacks.com: Bear of the Day
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Votorantim Celulose (VCP)
We are maintaining our Sell recommendation on Votorantim Celulose S.A. (<a The short-term outlook for pulp prices is quite uncertain as a result of the current credit crisis. <p> Third quarter results were disappointing and the pulp cash production cost increased during the quarter due to …
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St. Joe Company (JOE)
St. Joe Co. (<a is currently focusing on increasing liquidity through the sale of non-core assets, reducing headcounts, and reducing cap-ex expenditures in response to a rapidly deteriorating residential Florida real estate market. <p> In addition, JOE has eliminated most of its long-term …
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Reddy Ice Holdings, Inc. (FRZ)
Headquartered in Dallas, TX, Reddy Ice Holdings, Inc. (<a is the largest manufacturer and distributor of packaged ice in the United States. The company sells its products primarily under the Reddy Ice brand to approximately 82,000 consumer locations in 31 states and the District of Columbia. < …
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Central Garden & Pet Company (CENT)
The shares of Central Garden & Pet (<a are rated a Sell. <P is addressing a difficult environment of weak retail sales, adverse weather, and higher costs, which have affected the company s sales and profitability. <P ALIGN="left"> The benefits from the strategy of …
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CarMax, Inc. (KMX)
<B>CarMax, Inc.</B> (<a continues to face a difficult used-vehicle environment, largely due to aggressive incentives being offered by new vehicle manufacturers. <P used-car value due to the ongoing weakness in the overall economy and higher funding cost at the CarMax Auto Finance i …
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ReneSola, Ltd. (SOL)
ReneSola, Ltd. (<a - With a predominantly bearish outlook, we downgrade SOL to a SELL recommendation. The company is dogged with tightening credit markets, rising debt levels, pressure on ASPs, rising feedstock costs, and fissures in its Chinese customer base. <p> Furthermore, the company d …
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UST Inc. (UST)
UST Inc. (<a is the leading producer of moist smokeless tobacco products and dominates the premium sector of the domestic market. However, over the last 15 years, UST has been steadily losing market share to discounters in the sub-premium categories. <p> With the announced acquisition by Al …
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General Motors Corp. (GM)
General Motors Corp. (<a has failed to secure any loan from the government until now. The U.S. government was supposed to provide $25-50B in aid as DIP [debtor-in-possession] financing. The government also rejected the immediate $12 billion short term loan as the UAW [United Auto Workers] refused …
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SanDisk Corp. (SNDK)
SanDisk Corp. (<a - SanDisk reported disappointing Q3 earnings results due to negative product gross margin and excess inventory. We expect the company's earnings losses will be followed in 2009 even with substantial cost cutting and restructuring efforts. <p> We believe pricing is …
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TRW Automotive (TRW)
TRW Automotive Holdings Corp. (<a - TRW Automotive is affected by constant production cuts by OEMs [original equipment manufacturers], pricing pressure and lower production volumes in North America. The company has three business divisions: Chassis Systems, Occupant Safety Systems, and Automotive …
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CEMEX S.A. de C.V. (CX)
CEMEX S.A. de C.V. (<a - Currently, CEMEX is the third-largest cement company in the world, the fourth largest aggregates producer, and the largest ready-mix producer. The company is diversified by nation and region, and has a good growth record. It is a dominant force in Mexico, Spain, the U.K. …
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Radio One (ROIAK)
Radio One (<a - We maintain our Sell rating on Radio One. In our view, the company s high leverage (6.6x) will hinder its acquisition activities in the near future and thus, its attempts to diversify into higher-growth areas. <p> Moreover, in a period of declining earnings and cash flow, Ra …
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Primus Guaranty Ltd. (PRS)
Primus Guaranty Ltd. (<a - Headquartered in Bermuda, Primus Guaranty sells credit swaps as protection against the risk of default on investment grade obligations. The primary purchasers of credit swaps are commercial and investment banks as well as portfolio managers, insurance companies, and oth …
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Waddell & Reed Financial (WDR)
Waddell & Reed Financial (<a - Kansas-based Waddell & Reed, one of the nation's oldest mutual fund asset managers, offers investment management, investment product underwriting and distribution, as well as shareholder services. <p> A slowdown of sales momentum and a sharp d …
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Nortel Networks (NT)
Nortel Networks Corporation (<a a leading developer of telecom equipment, is facing severe business challenges as a result of the global economic slowdown, increasing competition, and reduced capital spending on the part of several of its major customers. <p> Nortel's third quarter …
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MGIC Investment Corporation (MTG)
MGIC Investment Corporation (<a - MGIC is the largest private mortgage insurer in the U.S., offering private mortgage insurance across the country, the District of Columbia, and in Puerto Rico through its subsidiary, Mortgage Guaranty Insurance Corporation [MGIC]. <p> MTG's core 3Q0 …
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Cost Plus, Inc. (CPWM)
Cost Plus, Inc. (<a - As expected, Cost Plus reported disappointing results for the third quarter. The company's sales trends have been weak for some time, and the current macro economic headwinds are not helping the company's prospects. <p> Mall traffic suffered a severe d …
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DTS Inc. (DTSI)
DTS Inc. (<a - Increasing demand for DTS technologies in emerging applications such as cars and PCs augur well for the company's earnings growth post-recession. The company is also diversifying its business in the virtual audio technology and broadcast market, and is enhancing the use of …
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Mack-Cali Realty Corp. (CLI)
Mack-Cali Realty Corporation (<a - Mack-Cali Realty is a fully integrated, self-administered, and self-managed office real estate investment trust (REIT). The company owns, operates leases, manages, and develops Class A office and industrial/flex properties, primarily in suburban markets in the n …
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Dell, Inc. (DELL)
Dell, Inc. (<a -- The rapid decline in corporate profits, highly illiquid capital markets, and the recessionary outlook are likely to dampen corporate capital spending. This is likely to have a major impact on Dell's server business. <p> Added to this is the continued decline in co …
Zacks.com: Bear of the Day
