For Immediate Release
Chicago, IL – December 22, 2009 – Zacks Equity Research highlights Lincoln Electric (LECO) as the Bull of the Day and The Andersons (ANDE) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon.com (AMZN), Barnes & Noble (BKS) and Sony (SNE).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Lincoln Electric (LECO) is pursuing a multi-year strategy to become more cost competitive by building manufacturing facilities in Eastern Europe, India, China and SE Asia. The company is using acquisitions to expand its manufacturing capabilities, broaden distribution networks and access growth markets.
Also, Lincoln Electric is implementing various cost-control measures to align with the current demand. Though the company is currently witnessing weak demand across its markets, we believe LECO will post strong growth on an economic recovery, boosted by its investments in emerging markets.
Moreover, the company has a strong financial position. LECO recently increased its dividend by 3.7%. We are upgrading the rating on Lincoln Electric stock from Neutral to Outperform.
The Andersons (ANDE) reported third-quarter earnings of 7 cents per share, well below the Zacks Consensus Estimate of 39 cents and the prior-year EPS of 70 cents per share. Apart from the Grain & Ethanol Group, all other segments at ANDE posted an operating loss for the quarter.
Revenue declined 33.6% to $601.0 million from $905.7 million in the year-ago period for The Andersons, primarily due to lower grain and plant nutrient prices. The current economic slowdown is having an adverse impact on all of the company’s businesses.
We do not expect a significant turnaround in any of these businesses in the near term. We are downgrading our recommendation on The Andersons to Underperform.
Latest Posts on the Zacks Analyst Blog:
AMZN’s Kindle Beating Alternatives
Amazon.com’s (AMZN) Kindle seems to be the only popular e-reader currently available in sufficient volume.
Barnes & Noble (BKS) recently sent out an email to customers who had pre-ordered their Nook e-reader, stating that they would not be able to meet the fulfillment schedule. Therefore, some customers who had expected the device by Christmas will now have to wait for Dec. 29.
Of course, BKS is well aware that the stakes are high, so it has decided to offer a $100 gift certificate to customers that did not receive the e-reader by Dec 24. This is a significant amount, considering the $259 price tag on the Nook is same as the Amazon Kindle.
The Nook is actually being offered ahead of schedule in an attempt to make use of the holiday season boost and limit the Kindle’s market share gains. However, the installed base of Kindles continues to increase. On the other hand, the hurried launch of the Nook first resulted in software issues and now order fulfillment issues. The company obviously misjudged demand, because a Nook ordered today will not be delivered until February.
The Sony (SNE) Reader is also out of stock, which leaves the field open for the Amazon Kindle. However, Sony is looking for other ways of dealing with Amazon. In a bid to improve content on the Reader, Sony has announced partnerships with 19 newspaper and periodical companies. While some of the publications are also available on the Amazon Kindle, others are not. Additionally, Sony has just one model offering wireless download, compared to all models for the Kindle. Additionally, an international version of the Amazon Kindle is also available.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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