For Immediate Release

Chicago, IL – July 13, 2009 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Broadcom Corp. (BRCM), Emulex Corp. (ELX), Primus Guaranty, Ltd. (PRS), Ambac Financial (ABK) and MBIA (MBI).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Friday’s Analyst Blog:

Broadcom Stops Pursuing Emulex

Broadcom Corp. (BRCM) yesterday dropped all efforts to acquire Emulex Corp. (ELX) after the latter rejected its revised acquisition offer. Broadcom had earlier raised its hostile bid to acquire all outstanding shares of rival Emulex from $9.25 per share to $11.00 per share.

Broadcom has been involved in a fierce battle to acquire Emulex since May. The company had earlier said that the $912 million revised offer was the best it could offer Emulex.

On the other hand, Emulex stated that the offer significantly undervalued its long-term prospects and was not in the best interests of its shareholders. The company appealed to the investors to not tender their shares into the offer.

Primus Grows with CypressTree

Primus Asset Management, Inc. (PAM), a wholly owned subsidiary of Primus Guaranty, Ltd. (PRS), announced the closure of the acquisition of CypressTree Investment Management, LLP on July 9, 2009. We view this acquisition as positive for PRS as it will gain more scale with a leveraged platform.

With approximately $2.4 billion of assets under management, CypressTree will operate as a wholly-owned subsidiary of PAM. The nature of CypressTree’s business is managing leveraged loans and high yield bonds among various other investment products, including collateralized loan obligations (CLOs), collateralized swap obligations (CSOs), off-shore funds and separately managed accounts. Following the acquisition, PAM now has over $25 billion in assets under management in structured credit vehicles.

Focusing on the single niche area of credit swaps, Primus is able to maintain lean operations and leverage its employee base while growing its business. As the company grows its portfolio with such acquisitions, the ratio of the notional amount of its credit swap portfolio to the number of its employees will decline, which could offset some of the current margin pressures.

In view of the challenging market conditions, PRS has decided to manage its business in the amortization mode versus the growth mode earlier and has also taken several other initiatives to reduce the risk of its portfolio and conserve its capital. However, the company expects to perform better than its peers — Ambac Financial (ABK) and MBIA (MBI) — in the upcoming quarters due to current CDS spread tightening. We are thus maintaining our Hold recommendation.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Mark Vickery
Web Content Editor



Zacks Investment Research